NAFTA Deadlines

November 2000

Pursuant to the guidelines implemented by the government of Mexico, November 20, 2000, is the date on which maquiladoras and Pitex operations in Mexico must begin tracking the origin of imported components and the date of export of the finished goods into which those components are incorporated. If a non-NAFTA originating component is incorporated into a finished good that is exported on or prior to December 31, 2000, no duties will be owed in Mexico. If a non-NAFTA originating component is incorporated into a finished good that is exported to a NAFTA party after December 31, 2000, duties may be owed in Mexico. Mexico may defer the lesser of the duty that would have been owed on the non-NAFTA component had the item been entered for consumption in Mexico and the duty actually paid to the NAFTA party. Any duty owed to Mexico must be paid within sixty days of exportation.

Prior to the implementation of NAFTA Article 303, the origin of components entered into maquiladoras and Pitex operations was not closely scrutinized. This will no longer be the case. Under the new rules, maquiladoras and Pitex operations must be diligent about supporting NAFTA claims with valid NAFTA Certificates of Origin. The Certificates of Origin must be in the possession of the importer at the time the claim is made.

Should you have any questions about the implementation of NAFTA Article 303, please contact your Barnes, Richardson & Colburn attorney.