Following NAFTA customs is necessary for countries who are in the agreement.
There are standard procedures designated by NAFTA that pertain to North American customs. They include documentation, trade procedures, and appeals.
Documentation
In order to benefit from NAFTA provisions, one must obtain a Certificate of Origin. This refers to Federal Form 434 and includes the designation of a Preference Criterion. The Certificate of Origin is distributed by the Department of Homeland Security and Preference Criterion is determined by the Secretariat.
Trade Procedures
In preparation of a future transaction, one can obtain an Advance Ruling. This can be done by sending specific questions to the customs NAFTA authority of each respective country. The answer received is binding by law, thus rendering Advanced Rulings highly effective in preparing for trade. Following this, one must apply for a Certificate of Origin and receive a Country of Origin marking so that the movement of goods is expedited. If there is an unfavorable ruling by a council, one can appeal this ruling to receive more benefits allotted by NAFTA. If there are any disputes along the trading process that cannot be handled through counseling, then either any part involved or the Free Trade Commission can file a dispute. Negotiations ensue and if a settlement isn’t made, the dispute goes into arbitration by proxy.
Appeals
Appeals can be made on advanced rulings, country of origin rulings, and country of origin marking rulings. This requires each country to have at least one level of judicial review separate of the entity that made the initial ruling, which is the NAFTA Secretariat. As a result, the legal systems of each respective country are expected to coincide to a degree.