Preferential origin

Preferential origin refers to the economic nationality of a product as determined under the terms of a preferential trade agreement (PTA) between two or more countries. It establishes whether a product qualifies for preferential (reduced or zero) customs duties upon importation into a partner country.

Unlike non-preferential origin, which determines general origin for trade statistics or labelling, preferential origin is specifically used to access preferential tariff treatment under free trade agreements (FTAs), association agreements, or economic partnership agreements.