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The NCWTC works on behalf of its members to promote the interests of U.S. businesses by enhancing prosperity and job creation. NCWTC’s trade policy goal is to expand market access for American exporters to overseas markets in a free and fair environment. To achieve these goals, the NCWTC works in conjunction with its partner organizations to provide consultancy services and to create awareness of current international trade policy information which aim at elimination of tariff and non-tariff barriers. NCWTC also liaises with the U.S Embassies and Consulates overseas to ensure that foreign trade policy information is readily accessible to exporters.

Information on international trade policy includes:

• Rules of Origin

• Declaring Origin

• Tariff Elimination

• Rules of Origin is a system that helps categorize products and is used to identify the tariff rate for each export product. These rules are written in terms of the Harmonized System (HS) of Tariff Classification. The classification system uses six to ten digit codes to identify goods (e.g HS 1905.90). The first two digits of an HS number are referred to as a “chapter,” the first four digits are “heading,” and the first six digits are called a subheading.

A Rule of Origin may consist of:

i) A change of tariff classification: For example products like breads, pastries, cakes, biscuits may be under HS 1905.90. Product classification under a different chapter due to additional inputs used during manufacture determines whether the product deserves preferential duty treatment at the time of export.   

ii).  A value content requirement: Rule of origin value content test allows goods to qualify for preferential treatment using methods of calculations that prove that the product has undergone substantial transformation using direct and indirect materials during its manufacture. It is necessary to note that a content requirement rule can only be applied when it is allowed under product-specific rule.

iii) Both (i) and (ii)

• Declaring Origin helps demonstrate eligibility for preferential tariff treatment. In general, product eligibility for preferential treatment may be demonstrated in different ways provided it is in written or electronic form. Certification for declaring origin should include the following information.

a)  The name of the certifying person, including as necessary, contact and other identification.

b)  Tariff classification under the Harmonized System and the description of the good

c)   Information demonstrating the origin of the good

d)   Date of the certification

e)   The time period over which the certification is valid

• Tariff elimination: The U.S- Central America and Dominican Republic Free Trade agreement (CAFTA-DR) for instance states that if rules of origin can be determined, then any exports under the agreement should be provided preferential treatment and no tariff charged. Free trade agreements aim at eliminating any tariffs which may be barriers to trade.

Frequently Asked Questions:

How does elimination of tariff and non-tariff barriers benefit U.S exporters?

Elimination of tariff and non-tariff barriers allows U.S products to be price competitive in the export market and against competing third-country products that do not have the duty benefits. 

How can a product qualify to take advantage of preferential treatment?

The product must qualify as an “originating” good under the terms of the agreement. The product must have sufficient U.S or signatory country content or processing to meet the criteria of the agreement.

  What if my good is produced in the U.S, but is transshipped through another country on its way to a CAFTA-DR country? Can it still qualify for preferential treatment?

It can, provided it does not undergo processing in the third country. A product that undergoes subsequent production or any other operation outside the territories of exporting country other than unloading, reloading or any other operation necessary to preserve it in the same condition can no longer qualify for preferential treatment.