February 04, 2021
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Origin criterion: change in tariff classification

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What are product-specific rules?

Product-specific rules (PSRs) of preferential origin are the requirements for a product, which incorporates non-originating materials, to be originating in a country. PSRs are created based on origin criteria. One criterion is a change in tariff classification (examples of other criteria: a production process, a maximum value or weight of non-originating materials). It means that any non-originating material used in the production of the product must be classified in a chapter, heading or subheading1 other than that of the product.

What is a practical example?

In the EU cane sugar (HS heading 17.01) is being produced from sugar cane (HS heading 12.12) for export into the UK. The product-specific rule set out in the EU-UK trade and cooperation agreement2:

‘CTH’ means that any non-originating material used in the production of the product must be classified in a heading other than that of the product (i.e. a change in heading).

Consequently, in the case of EU production of cane sugar (17.01) from non-originating sugar cane (12.12), the product-specific rule is fulfilled. The sugar is of preferential EU origin and can be imported into the UK at a preferential duty rate (0%). 

What else is required?

Please note that before checking the product-specific rule of origin, you must make sure that the production operations conducted on the non-originating materials are sufficient. You will find the list of insufficient operations in the particular agreement or arrangement.

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1Chapter means the 2-digit level of the Harmonised System, heading means the 4-digit level of the Harmonised System, subheading means the 6-digit level of the Harmonised System

2Trade and cooperation agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part, published in the EU Official Journal L 444 on 31.12.2020

Comments ()

image en
Non-preferential origin & punitive tariffs
09-05-2023

Enrika Naujokė

origin
image en
Non-preferential origin & punitive tariffs
09-05-2023

Enrika Naujokė

origin
en, lt
Harley-Davidson case highlights limits of binding origin information in Union customs law
07-05-2023

In the European Union customs law, it is possible for an economic operator to obtain binding tariff or origin information decisions, which provide assurance about the tariff classification or origin of goods. However, does such a customs decision always guarantee legal security just because national customs has issued a favorable decision to the trader?

Jonas Sakalauskas

origin
en, lt
Harley-Davidson case highlights limits of binding origin information in Union customs law
07-05-2023

In the European Union customs law, it is possible for an economic operator to obtain binding tariff or origin information decisions, which provide assurance about the tariff classification or origin of goods. However, does such a customs decision always guarantee legal security just because national customs has issued a favorable decision to the trader?

Jonas Sakalauskas

origin
image en
Preferential origin: supplier's declaration in the EU
30-04-2023

Annette Reiser

origin
image en
Preferential origin: supplier's declaration in the EU
30-04-2023

Annette Reiser

origin
image en
Issues of preferential and non-preferential origin in complex supply chains
20-11-2022

Anthony Buckley

origin
image en
Issues of preferential and non-preferential origin in complex supply chains
20-11-2022

Anthony Buckley

origin
en, lt
Software installation and origin of goods
11-09-2022

Reader's question: ‘We export certain devices to Ukraine. The product-specific rule is based on the value criterion. Can the value of expensive software, which was created and developed in the EU, be counted as the value of originating materials?’ To answer this question, we review various aspects of the topic, which is becoming increasingly important, as more and more goods do not function without software.

Enrika Naujokė

origin
en, lt
Software installation and origin of goods
11-09-2022

Reader's question: ‘We export certain devices to Ukraine. The product-specific rule is based on the value criterion. Can the value of expensive software, which was created and developed in the EU, be counted as the value of originating materials?’ To answer this question, we review various aspects of the topic, which is becoming increasingly important, as more and more goods do not function without software.

Enrika Naujokė

origin
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