Chapter 14

Certificate of Origin (CO) (pg. 372)

required for all shipments moving among the United States, Canada, and Mexico

maquiladora

the Spanish term for 'offshore assembly plants' (or in the case of Mexico, 'border plants'); production-sharing plants

export taxes

NAFTA prohibits new of THESE on goods, unless the taxes are also applied to similar goods sold for domestic consumption

tariff shift rule

The Annex 401 rules of origin may be based on a 'change in tariff classification', a 'regional value-content requirement', or both, depending on the requirements for that particular product; Annex 401 rules can be found in the 'General Notes' of the 'Harmonized Tariff Schedules.'

arbitral panel

a NAFTA panel, consisting of five members who are experts in trade or law

common market

also called an economic community; goes further than a customs union; seeks to further facilitate free competition within a group of nations

binational panels

appeals from administrative orders in NAFTA cases now go HERE, not to courts of law; apply the same standard of review as would a court of law convened in the country where the case originated

regional value content

in limited cases, NAFTA requires a specified amount of THIS; a similar rule is used for trade in automobiles and parts

free trade area (FTA) (pg. 365)

develops when two or more countries agree to eliminate or phase out customs duties and other barriers to trade among the member countries; here, there is free trade only in goods produced within it

customs user fees

fees imposed on importers to help fund the cost of customs enforcement and port services

customs union

is more ambitious in scope than an FTA; here, there is free trade in all goods that come through any of the union members, even imports from outside the customs union; can only function if all of its members agree to a common tariff on imports from outside the union

national treatment (pg. 369)

or "Generalized System of Preferences (GSP)"; available to selected products imported from any qualified developing country

production sharing (pg. 389)

the process of spreading manufacturing and assembly operations across international borders; a term coined by business theorist Peter Drucker; one type of THIS involves the manufacture or fabrication of articles or component parts in one country and their assembly into finished goods in another

substantial transformation test

used to determine the country of origin of goods imported into the US when the goods are produced or assembled in more than one country