Free Trade Agreement Requirements

Upon Eaton’s request, the Supplier shall provide Eaton with evidence of any certificate in its possession which under the Free Trade Agreements allows Eaton to import without paying import duties.

NAFTA – North American Free Trade Agreement

All Eaton suppliers that are either in a NAFTA territory country or potentially supply to a NAFTA territory country (USA, Canada, Mexico) will be solicited by a third party to provide a NAFTA certificate of origin. Please see the below  letter as an example of the solicitation that will be sent annually.

Supplier NAFTA Instructions

The below link will provide a blank certification of origin as well as instructions of how to complete the document.

NAFTA Certificate of Origin and Instructions for Completion

Dominican Republic - Central America Free Trade Agreement (CAFTA-DR)

The CAFTA-DR allows for reduced or free rates of duty for qualifying imports from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

Guidelines for claiming CAFTA-DR are summarized below:

  • Products must be eligible for CAFTA-DR qualifications.
  • Products must be produced in a CAFTA-DR country.
  • Products must be assigned an HTSUS classification code.

Please visit the below link for additional information. Further questions can be directed to your Eaton representative.

http://www.export.gov/FTA/cafta-dr/index.asp

GSP – Generalized System of Preferences

Requirements for GSP for merchandise, which is the growth, product, manufacture, or assembly of a beneficiary developing country include:

  1. Direct shipment from the beneficiary developing country without entering into the commerce of another country.
  2. Evidence of country of origin, GSP Declaration.
  3. The sum of the cost or value of the materials produced in the beneficiary developing country plus the direct costs of processing operations performed in such beneficiary developing country is not less than 35% of the appraised value of the article at the time of its entry into the Customs territory of the U.S.
  4. Merchandise which is wholly the growth, product or manufacture of a beneficiary developing country and manufactured products consisting of materials produced only in such country shall normally be presumed to meet the requirements set out in 19 CFR §10.176 of the Customs regulations.

The following documents are required for entries under GSP:

  • For merchandise not wholly the growth, product, or manufacture of a beneficiary developing country, the exporter of the merchandise or other appropriate party having knowledge of the relevant facts shall prepare a GSP Declaration and present it to Customs upon request.
  • For merchandise that is wholly the growth, product, or manufacture of a beneficiary developing country, a GSP Declaration in the form of a statement is stamped or typed by the supplier on the commercial invoice provided to Customs.

Copies of invoices, bills of lading, and other shipping documents showing the U.S. as the final destination and the beneficiary developing country as the port of lading without entering the commerce of any other country will be maintained in the files.

GSP Informed Compliance

Revised November 11, 2010