HQ 003906 - Corrected NAFTA Certificates of Origin; 19 CFR 181.23(c). - United States International Trade Commision Rulings

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HQ 003906

March 7, 1996

RR:IA 003906 ch

CATEGORY: NAFTA

Director, NAFTA Center
P.O. Box 610088
Dallas, Texas 75261-0088

RE: Corrected NAFTA Certificates of Origin; 19 CFR 181.23(c).

Dear Madam:

This is in response to your memorandum, dated December 5, 1995, requesting internal advice concerning corrected NAFTA Certificates of Origin under Customs Regulation 181.22 (19 CFR 181.22).

FACTS:

The Certificate of Origin (Customs Form 434) is used to certify that a good qualifies as an originating good for purposes of preferential tariff treatment under the North American Free Trade Agreement (NAFTA). The form includes fields for the name and address of the producer, importer and exporter; the blanket period for which preferential treatment is claimed; a description of goods; the preference criterion; the Harmonized System tariff classification number; the country of origin; the authorized signature; the date of signature.

ISSUES:

Whether a port director must allow an importer to correct the contents of Customs Form 434 pursuant to 19 CFR 181.23(c)?

Whether such a Certificate must be signed by the exporter?

LAW AND ANALYSIS:

Corrected Certificates

The Certificate of Origin must be used to claim preferential tariff treatment under the NAFTA. 19 CFR 181.11. According to 19 CFR 181.22(b), an importer claiming preferential treatment shall provide, at the request of the port director, a copy of each Certificate of Origin pertaining to the goods in question. In addition, the Regulation states in part that the Certificate of Origin must be on Customs Form 434 or other format approved by the Office of Trade Operations and must be signed by the exporter or the exporter's authorized agent.

19 CFR 181.22(c) states in pertinent part that:

A Certificate of Origin shall be accepted by the port director as valid for the purpose set forth in 181.11(a) of this part, provided that the Certificate is completed, signed and dated in accordance with the requirements of paragraph (b) of this section. If the port director determines that a Certificate is illegible or defective or has not been completed in accordance with paragraph (b) of this section, the importer shall be given a period of not less than five working days to submit a corrected Certificate. Acceptance of a Certificate will result in the granting of preferential tariff treatment to the imported good unless, in connection with an origin verification initiated under subpart G of this part or based on a pattern of conduct within the meaning of 181.76(b) of this part, the port director determines that the imported good does not qualify as an originating good or should not be accorded such treatment for any other reason as specifically provided for elsewhere in this part. (Emphasis supplied).

Under the terms of 19 CFR 181.23(c), the port director must allow an importer at least five working days to cure a Certificate of Origin that has not been completed in accordance with 19 CFR 181.23(b). As noted above, 19 CFR 181.23(b) requires that the Certificate of Origin must be on Customs Form 434 or other approved format. Accordingly, the port director must allow the importer at least five working days to correct Customs Form 434, including the data fields contained therein. Further, pursuant to 19 CFR 181.23(c), the port director must accept the corrected Form 434 as valid unless he or she determines that the imported good does not qualify as originating for reasons provided for elsewhere in Part 181 of the Regulations.

Signing the Corrected Certificate

Article 501, subsection (3), of the NAFTA states in pertinent part that each Party shall:

(a) require an exporter in its territory to complete and sign a Certificate of Origin for any exportation of a good for which an importer may claim preferential tariff treatment on importation of the good into the territory of another Party; and

(b) provide that where an exporter in its territory is not the producer of the good, the exporter may complete and sign a Certificate on the basis of

(i) its knowledge of whether the good qualifies as an originating good,

(ii) its reasonable reliance on the producer's written representation that the good qualifies as an originating good, or

(iii) a completed and signed Certificate for the good voluntarily provided to the exporter by the producer.

(Emphasis supplied).

Thus, the NAFTA requires an exporter to sign a NAFTA Certificate of Origin. In many instances, the exporter will be the producer of the good. However, when this is not the case the producer is not permitted to sign the Certificate for the exporter. Rather, the exporter must sign the form on the basis of his or her knowledge of whether the good qualifies as an originating good or upon the producer's written declaration to that effect. 19 CFR 181.22(b)(2) reflects subsection 501(3) of the NAFTA and states that the Certificate of Origin "shall be signed by the exporter or by the exporter's authorized agent having knowledge of the relevant facts." In view of the foregoing, only the exporter or the exporter's authorized agent may sign a corrected Certificate of Origin.

HOLDING:

The port director must allow an importer at least five days to correct the contents of the NAFTA Certificate of Origin (Customs Form 434). A corrected Certificate must be signed by the exporter or the exporter's authorized agent.

Sincerely,

John Durant, Director

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