February 04, 2021
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Origin criterion: change in tariff classification

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Origin criterion: a change in tariff classification

Product-specific rules (PSRs) of 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.

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%). 

General note

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