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NAFTA Content Rules
The North American Free Trade Agreement (NAFTA) provides preferential tariff treatment for all "originating" North American goods traded between Canada, the United States and Mexico. NAFTA content rules are used to determine whether an item qualifies as a good originating in North America. These rules ensure that preferential tariff benefits are only available for goods substantively produced or transformed in North America.
Any goods produced in any or all of the NAFTA countries, with components and materials that themselves are wholly sourced or manufactured in any of the countries, qualify as originating goods entitled to preferential tariff treatment.
Goods that incorporate offshore raw materials or components will also qualify for preferential tariff treatment if they have undergone a specified change from one tariff description to another. For certain goods, such as auto sub-assemblies, these criteria are supplemented by a value-added test.
The NAFTA rules of origin build on rules that were developed for the FTA. Canadian exporters will find the NAFTA rules clearer and more predictable. You'll find more detailed information about by visiting the Foreign Affairs and International Trade Canada webpage on
Canada and the North American Free Trade Agreement.
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Ontario's Global Presence
