CBP Expected to Increase NAFTA Verifications

CBP is expected to perform a larger number of reviews to check importer compliance with NAFTA requirements, A.N. Deringer said in an alert. The company said CBP recently found that a high number of NAFTA claims aren't verifiable and that importers and exporters should take a close look at their claims.

Asked for comment on the issue, CBP Office of International Trade didn't say whether it planned to perform more NAFTA reviews. "CBP utilizes risk management in its trade enforcement missions" and "we adjust [number] and types of reviews based on risk," said a spokeswoman for the CBP Office of International Trade.

Large Percentage Considered Inaccurate

The renewed focus on NAFTA compliance stems from a recent CBP look at the number of verifiable claims, said the A.N. Deringer notice. CBP found through NAFTA "verification that a high percentage of claims can’t be verified and are, therefore, considered inaccurate," the company said. "As a result of their findings, CBP plans to conduct far more NAFTA reviews. In most cases, CBP will not grant any extensions of time to supply the requested proof because NAFTA rules demand that the analysis to support NAFTA claims be done prior to the signing of a NAFTA certificate. Accordingly, proof of NAFTA should be readily available upon request. Failure to timely prove NAFTA eligibility could result in the denial of the NAFTA claim and/or the opening of an investigation or penalty action."

Deringer recommended that importers and exporters evaluate NAFTA and other trade agreement claims and ensure that they have the appropriate documentation to back up specific trade agreement claims "prior to the signing of a certificate or prior to accepting one supplied by another party."