Rules of origin determine the ‘economic nationality’ of goods. This means where they are considered to have been produced or manufactured, not where they are shipped from.
The origin of a good is one of the factors – alongside tariff classification and customs value – that determine which customs tariff treatment is applied as well as any trade policy measure.
In customs, there are 2 distinct types of origin:
- non-preferential origin
- preferential origin.
Non-preferential origin
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. They are also used for trade statistics, public tenders and origin marking.
The EU applies its own non-preferential rules of origin, which may be different from those of other non-EU countries.
More on non-preferential origin
Preferential Origin
Why does preferential treatment exist? Find more information in this Quick guide to working with rules of origin | Access2Markets
Preferential rules of origin determine whether a good qualifies as originating from a certain country, with which there is a preferential arrangement in place.
Where all the requirements are met, goods with preferential origin are eligible to be imported with lower duty rates or even at a zero rate, depending on the preferential arrangement in question.
There are two types of preferential arrangements:
- unilateral arrangements (preference granted by the EU with no reciprocity from the other side). Example: Overseas Countries and Territories (OCTs).
- reciprocal arrangements (agreements establishing free trade areas). Check the Trade agreements | Access2Markets page
These 2 types of arrangements are based on the origin of the products benefiting from tariff preferences. So they do not include customs union agreements concluded by the EU with Türkiye, Andorra and San Marino.
The Generalised system of preferences (GSP) is the preferential treatment granted unilaterally to developing countries, including the Everything but arms initiative (EBA).
EBA is a trade preferential scheme adopted in 2001 for the 49 countries. It grants duty- and quota-free access for almost all products, except arms and ammunition. It is regulated by Regulation (EU) No 978/2012 of the European Parliament and of the Council.
More on preferential origin
Binding origin information
BOIs are decisions by the customs authorities in one EU country about the origin (preferential or non-preferential) of goods being imported to or exported from the EU.
A BOI decision is binding on the trader who holds it and on all EU countries’ customs authorities.