This memorandum contains the remission orders that implement the Tariff Preference Level (TPL) mechanisms of the North American Free Trade Agreement (NAFTA), the Canada-Chile Free Trade Agreement (CCFTA) and the Canada-Costa Rica Free Trade Agreement (CCRFTA). It also contains administrative guidelines and other general information concerning the orders.
Under the terms of NAFTA, the Parties to the Agreement have agreed to grant preferential tariff treatment to specified quantities of certain yarns, fabrics, apparel, and textile articles, traded among the Parties that do not meet the rules of origin of the Agreement. These provisions of NAFTA constitute a trade mechanism known as a "Tariff Preference Level." Similar provisions in CCFTA and CCRFTA apply to trade between Canada and Chile, and Canada and Costa Rica respectively. The preferential rate of duty under NAFTA, CCFTA and CCRFTA TPL mechanisms is the rate that would apply to the goods if they were originating goods under the applicable agreement.
Complete details are available here.