Why Is NAFTA Documentation Important?
Insufficient or incomplete NAFTA information can lead to import duty charges. Companies can face monetary penalties up to $25,000 for inaccurate or incomplete information regarding NAFTA compliance.
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NAFTA vs. USMCA.
As of July 1, 2020, the North American Free Trade Agreement (NAFTA) has been replaced with the USMCA. The USMCA creates more incentives for automobile manufacturers to make parts in the US, eliminates tariffs on certain agricultural products, and includes regulations for digital trade that was not present in NAFTA. The agreement also allocates $600 million to environmental protections to enforce regulations.