February 28, 2022
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Origin of goods

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What is the definition of origin of goods?

There is no international definition of origin of goods, although a distinction is made between two systems: preferential and non-preferential. In the case of preferential origin, everything is based mainly on bilateral or multilateral agreements. In the case of non-preferential origin, each country applies its own rules, although within some regional economic unions the non-preferential rules are harmonised for all the member states of the Union concerned.

The World Customs Organization (WCO), in the International Convention on the simplification and harmonization of Customs procedures (Revised Kyoto Convention), defines rules of origin as 'the specific provisions, developed from principles established by national legislation or international agreements ('origin criteria'), applied by a country to determine the origin of goods.

What is the purpose of rules of non-preferential origin?

The country of origin must not be confused with the country of provenance (i.e., the last country that the goods passed through). The purpose of rules of origin is to determine the 'economic nationality' of a good. The determination of the country of origin is, alongside tariff classification and customs valuation, an essential factor for establishing the amount of the customs duties and taxes payable. The origin of a good will also determine, where appropriate, the application of any trade policy measures (quotas, anti-dumping duties, trade embargoes, etc.).

Comments ()

en
Supplier's declaration in preferential trade: when to use it?
25-06-2023

Global trade based on preferential treatment offers benefits to its participants. The main one is a reduction in financial costs due to the application of reduced tariff rates when the goods have a preferential origin. In other words, if a product originates in one country and is sold to another country with which there is a preferential trade agreement, the product may be subject to a reduced or even zero duty rate. However, the mere fact that the goods originate in a particular country is not enough to qualify for such benefits. The preferential origin of the goods must be proven, so that the customs authorities do not suspect any manipulation or fraud on the part of importers. Each specific preferential trade agreement sets out acceptable ways of proving the preferential origin of goods. A supplier's declaration is one of the means of proof. Let us find out what it is and when it can be used.

Annette Reiser

origin
en
Supplier's declaration in preferential trade: when to use it?
25-06-2023

Global trade based on preferential treatment offers benefits to its participants. The main one is a reduction in financial costs due to the application of reduced tariff rates when the goods have a preferential origin. In other words, if a product originates in one country and is sold to another country with which there is a preferential trade agreement, the product may be subject to a reduced or even zero duty rate. However, the mere fact that the goods originate in a particular country is not enough to qualify for such benefits. The preferential origin of the goods must be proven, so that the customs authorities do not suspect any manipulation or fraud on the part of importers. Each specific preferential trade agreement sets out acceptable ways of proving the preferential origin of goods. A supplier's declaration is one of the means of proof. Let us find out what it is and when it can be used.

Annette Reiser

origin
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
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