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TPL - Frequently Asked Questions

Q: The SMEs for my product seem ridiculous. How can I change them?
A: The conversion factor for SMEs can be found in Annex 300-B Schedule 3.1.3 of NAFTA. They were negotiated by the NAFTA partners and are arbitrary amounts. They cannot be changed.

Q: If I buy quota TPL this year does my allocation go up next year?
A: Yes, because there is typically unused quota which is taken away from companies that did not use it and redistributed to firms that transferred in TPL.

Q: What is the difference Between a Certificate of Origin and a Certificate of Origin?
A:  aThe Certificate of Origin accompanies  products exported to the United States that qualify as NAFTA originating.  A Certificate of Eligibility accompanies goods that are eligible for NAFTA benefits but are goods that do not originate within NAFTA - for example goods that require TPL.

Q:  What is the difference between TPL allocation and utilization?
A: Allocation is the amount of TPL each company receives at the beginning of a quota year. Utilization refers to the amount of TPL actually used by a company during or at the end of the quota year.

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