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[ Music ]
JoAnn Queen: Hello again I'm JoAnn Queen.
In previous video's we've learned about NAFTA Rules
of Origin and how to determine whether goods
with some non-NAFTA components qualify for duty free status.
As a last step before you complete the NAFTA Certificate
of Origin you must select the preference criteria
that applies to your product.
What is the preference criteria?
It tells the Mexican or Canadian customs official how your goods
qualify for duty free status.
There are 6 criterion represented by letters
of the alphabet A thru F. Here is a brief description
accompanied by a little NAFTA music.
[ Background music ]
JoAnn Queen: Criterion A refers
to natural resource products grown, harvested,
or mined in a NAFTA country.
Criterion B refers to goods manufactured in a NAFTA country
that contains NAFTA and non-NAFTA components
and satisfies its specific NAFTA Rule of Origin.
Criterion C refers to goods produced
in a NAFTA territory exclusively
from NAFTA originating parts and components.
Criterion D refers to rare cases where a good
and its parts have the same classification number
and could not undergo the required tariff change.
Criterion E refers to specific kinds
of automatic data processing machines and their parts.
You can read more about this criterion in annex 308.1
which accompanies this video and last
but not least criterion F. It applies
to certain agricultural goods imported into Mexico.
This part of the agreement was negotiated on a bilateral basis.
Most of you will be mainly concerned with criteria B
and C. Now that you know how
to determine whether your good qualifies
for NAFTA duty free status,
it's time to complete the NAFTA Certificate of Origin.
Thanks for watching and see you soon.