When shipping between US, Canada and Mexico, it is a requirement for NAFTA (North American Free Trade Agreement) Certificate of Origin to enter the criteria of the item being exported.
The NAFTA Preference Criteria is designated by the letters "A" through "F" which shows how the product qualifies for a NAFTA tariff rate.
A preference criterion is required in Field # 7 of the Certificate of Origin for each export product. The NAFTA preference criteria are as follows:
• A – Natural resources, e.g., anything grown, harvested, fished, or mined in any one of the NAFTA countries.
• B – Manufactured goods that contain foreign parts, components, or raw materials and meet the requirements of its specific NAFTA Rule of Origin.
• C – Goods manufactured exclusively with NAFTA originating parts or components.
• D – Covers goods where the HS code for the product and its parts is the same and the manufacturer is allowed to use Regional Value Content to determine whether the good originates.
• E – HS code-specific Automatic Data Processing equipment.
• F – Applies to certain "agricultural" products exported only to Mexico.
For further explanation of what each criterion signifies, please refer to this link http://export.gov/logistics/eg_main_018132.asp
Once we have determined which criterion that product belongs into, select the letter in the Preference Criterion field in NetSuite found in the Item record > Sales/Pricing tab > Shipping section.
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