![]() But it must be determined-and determined accurately. However, it is something that all parties involved in importing merchandise into the United States must do.įirst and foremost, it cannot be overemphasized enough: country of origin does not always equal country of exportation.Īccording to CBP, the country of origin is determined by “the country of manufacture, production, or growth of any article of foreign origin.” Considering that a particular article can have raw materials and parts sourced from multiple countries, and then subsequently undergo manufacturing and processing in others, it’s easy to see howĭifficult it can be to make the final determination of that article’s country of origin. Determining the country of origin can be quite a complicated undertaking because of today’s complex, globalized supply chains and growing trade business among many countries of the world. Marking cannot happen until country of origin is determined. To be fully compliant, importers must also ensure the merchandise is marked conspicuously, legibly, indelibly, and permanently with the country of origin, plus ensure that the correct country of origin is on the Customs documents. Customs and Border Protection (CBP) to importers, making it the importer’s responsibility to provide CBP with accurate information regarding not only country of origin, but also admissibility, tariff classification, and value of the imported goods. Rules of origin legally shift responsibility from U.S. ![]() What exactly are rules of origin? Simply put, these rules that legally obligate importers to determine the country of origin for merchandise that they import into the United States. A legal requirement of the Mod Act obligates importers to exercise reasonable care when importing goods into the United States (the fifty states, District of Columbia and Puerto Rico).Īn important requirement of reasonable care is rules of origin. In 1994 Congress passed the Customs Modernization Act, also known by its abbreviation Mod Act. In the international context BOI decisions are referred to as advance rulings on origin.Ī list of the authorities responsible for issuing BOIs is published in OJ C431 of, p.5.Ī list of BOI decisions issued by the competent authorities, indicating the publicly available details is updated on a regular basis.Before we can tackle country of origin, we first must take a step back in history to understand its roots. It is to be noted that the holder of a BOI is not exempted from presenting the necessary proof of origin in order to be granted a preferential duty rate. The BOI decisions are normally valid for three years from the date of issue. Read more on Preferential Origin Binding origin informationīOIs are decisions by the competent authorities, which are binding on the holder and on the customs authorities in all Member States in respect of goods imported or exported after their issue, provided the goods and the circumstances determining the acquisition of origin are identical in every respect to what is described in the BOI. Where all the requirements are met, goods with preferential origin are eligible to be imported with lower duty rates or at zero rate, depending on the preferential tariff treatment provided for. Preferential rules of origin determine whether goods qualify as originating from certain countries, for which special arrangements and agreements apply. Read more on Non-Preferential Origin Preferential Origin ![]() The EU applies its own set of non-preferential rules of origin provisions, which may be different from those of any other third country. They are also used for trade statistics, public tenders and origin marking. Non-preferential rules of origin are used to determine the country of origin of goods for the application of the most-favoured nation treatment (MFN) but also for the implementation of a number of commercial policy measures such as anti-dumping and countervailing duties, trade embargoes, safeguard measures and quantitative restrictions or tariff quotas. For customs matters, there is a distinction between two types of origins, notably non-preferential origin and preferential origin. The tariff classification, value and origin of a good are determining factors based on which the customs tariff treatment is applied. As such, the ‘origin’ is the 'economic nationality' of goods traded in commerce. not where they have been shipped from, but where they have been produced or manufactured. Rules of origin determine where goods originate, i.e.
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