# 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.

<div>  
</div>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.

# General principles

<div id="bkmrk-1.-introduction-and-">### **Introduction and Context** 

<div>**![](https://acc.bzctrl.com/bzctrl-core-api/api/v1/download/editor_324_5_bbe5ad4e-4cb6-4eed-a40f-f5450cd9c960_drow_20260121T125612003Z.png)**</div><div>   
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</div><div>[ttyy](https://acc.bzctrl.com/bzctrl-core-api/api/v1/bookstack/attachments/110)</div>#### **[skjdf.pptx](https://acc.bzctrl.com/bzctrl-core-api/api/v1/bookstack/attachments/109)**

<div>**[ttyy](https://acc.bzctrl.com/bzctrl-core-api/api/v1/bookstack/attachments/110)**</div><div>**[skjdf.pptx](https://acc.bzctrl.com/bzctrl-core-api/api/v1/bookstack/attachments/109)** </div>#### **1 Meaning** 

#### **of 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.

To obtain preferential origin, a product must either:

- Be **wholly obtained** in one of the partner countries; or
- Be **sufficiently worked or processed** according to the *Product-Specific Rules (PSR)* set out in the agreement. TEST

The rules ensure that only goods genuinely produced within the parties' economies benefit from preferential tariff treatment.

<div>  
</div><div>#### **2 Purpose of Preferential Origin Procedures**

The purpose of establishing and verifying preferential origin is to:

- Ensure correct application of preferential duty rates;
- Prevent abuse of trade preferences through simple transshipment or minor processing;
- Guarantee fair competition between partner countries;
- Provide customs authorities with a verifiable framework for origin determination;
- Enable exporters and importers to confidently claim tariff preferences.

<div></div><div>#### **3 Legal Basis**

For the European Union, preferential origin is governed by:

- The individual trade agreements concluded by the EU (e.g. the EU–UK TCA);
- Articles 60–64 of the **Union Customs Code (Regulation (EU) No 952/2013)**;
- Relevant implementing and delegated acts.

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# General Procedure: Determination of Preferential Origin

#### **Step 1 - Identify Applicable Agreement**

<div id="bkmrk-">  
</div><div id="bkmrk--1">  
</div>Determine whether a preferential trade agreement exists between the **exporting** and **importing** countries.  
If such an agreement exists, it provides the basis for preferential tariff treatment.

<div id="bkmrk--2">  
</div>#### **Step 2 - Determine Tariff Classification**

Identify the product's tariff classification at the HS 6- or 8-digit level. The tariff heading determines which **Product-Specific Rule (PSR)** applies.

<div id="bkmrk--3">  
</div>#### **Step 3 - Consult the Product-Specific Rule (PSR)**

Locate the relevant PSR in the annex to the applicable agreement. Typical PSR formats include:

- **Wholly obtained** requirement;
- **Change in Tariff Heading (CTH)**;
- **Value limitation rule** (maximum % of non-originating materials);
- **Specific manufacturing process**.

#### **Step 4 - Identify and Value Materials**

- List all **originating** and **non-originating** materials used in production.
- Calculate the **ex-works price** of the final product.
- Apply the PSR to verify compliance.

#### **Step 5 - Apply Cumulation (if permitted)**

Cumulation allows originating materials or processing from another partner country to count as originating.

- **Bilateral cumulation**: between the two agreement partners.
- **Diagonal or full cumulation**: only if explicitly allowed (e.g. not in the EU-UK TCA).

#### **Step 6 - Verify Beyond Minimal Operations**

Check that the processing carried out exceeds the - minimal operations - defined in the agreement (e.g., simple packaging, mixing, or labelling do not confer origin).

<div id="bkmrk--7">  
</div>#### **Step 7 - Prepare Proof of Origin**

The type of origin document depends on the agreement:

- **Statement on Origin** (self-certification); or
- **Movement Certificate (EUR.1)** where applicable.

<div id="bkmrk--8">  
</div>#### **Step 8 - Record-Keeping and Evidence**

Maintain all origin-related documents for at least **3-5 years**:

- Supplier declarations;
- Cost breakdowns;
- Production records;
- Tariff classification evidence.

#### **Step 9 - Verification by Customs**

Customs authorities may request post-clearance verification. Failure to substantiate origin claims may result in retroactive duty recovery.

# Template preferential origin (long term) supplier declaration

<div id="bkmrk-%5Bto-be-printed-on-co" style="margin-top: 0cm; margin-right: 0cm; font-size: 11pt; font-family: Calibri, sans-serif; margin-bottom: 8pt; text-align: center; line-height: 107%;"><span style="line-height: 107%; color: rgb(68, 114, 196); text-decoration: inherit;">\[TO BE PRINTED ON COMPANY LETTERHEAD\]</span>

</div><div id="bkmrk-" style="margin:0cm;font-size:11.0pt;font-family:"Calibri",sans-serif;margin-bottom:8.0pt;text-align:center;
line-height:107%;">  
</div>**<span lang="EN-US" style="line-height:107%;">SUPPLIER'S DECLARATION</span>**

<span lang="EN-US" style="line-height:107%;"></span>

<span lang="EN-US" style="
line-height:107%;">I, the undersigned, declare that the goods listed on this document …………………………….……………….(1), originate in ……………………………….(2) and satisfy the rules of origin governing preferential trade with ……………………………………………(3).</span>

<span lang="EN-US" style="
line-height:107%;"></span>

<span lang="EN-US" style="
line-height:107%;">I declare that (4):</span>

<span style="position:relative;"><span style="position:absolute;left:1px;top:-49px;width:12px;height:11px;">  
</span></span><span style="position:relative;"><span style="position:absolute;left:1px;top:-27px;width:12px;height:11px;">  
</span></span><span lang="EN-US" style="line-height:107%;"><span> ![editor_310_5_d5e519f3-a209-4ca6-a648-ec57e868cd0c_rte_image_272.png](https://www.bzctrl.com/bzctrl-core-api/api/v1/download/editor_310_5_d5e519f3-a209-4ca6-a648-ec57e868cd0c_rte_image_272.png) </span>Cumulation applied with …………………………………(name country/countries)</span>

<span lang="EN-US" style="
line-height:107%;"><span> ![editor_310_5_779ef7f7-bc0f-41bb-a476-33eafaf08dce_rte_image_276.png](https://www.bzctrl.com/bzctrl-core-api/api/v1/download/editor_310_5_779ef7f7-bc0f-41bb-a476-33eafaf08dce_rte_image_276.png) </span>No cumulation applied</span>

<span lang="EN-US" style="
line-height:107%;"></span>

<span lang="EN-US" style="
line-height:107%;">I undertake to make available to the customs authorities any further supporting documents they require.</span>

<span lang="EN-US" style="
line-height:107%;">……………………………………………………………………….…. (5)</span>

<span lang="EN-US" style="
line-height:107%;">………………………………………………………………………….. (6)</span>

<div id="bkmrk-%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6-2"><span lang="EN-US" style="font-size:11.0pt;font-family:"Calibri",sans-serif;">……………………………………………………………………..…… (7)</span></div><div id="bkmrk--1"><span lang="EN-US" style="font-size:11.0pt;font-family:"Calibri",sans-serif;">  
</span></div><div id="bkmrk-____________________"><span lang="EN-US" style="font-size:11.0pt;font-family:"Calibri",sans-serif;">\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_</span></div><div id="bkmrk--2"><span lang="EN-US" style="font-size:11.0pt;font-family:"Calibri",sans-serif;">  
</span></div>*<span lang="EN-US" style="font-size:12.0pt;
line-height:107%;">Footnotes (can be removed after completion)</span>*

<span lang="EN-US" style="
line-height:107%;">(1) If only some of the goods listed on the document are concerned, they shall be clearly indicated or marked and this marking entered in the declaration as follows:</span>

<span lang="EN-US" style="
line-height:107%;">“………………..…listed on this document and marked …………………..….originate in ………………….… </span>

<span lang="EN-US" style="
line-height:107%;">(2) The European Union, country, group of countries or territory, from which the goods originate </span>

<span lang="EN-US" style="
line-height:107%;">(3) Country, group of countries or territory concerned</span>

<span lang="EN-US" style="
line-height:107%;">(4) To be completed, where necessary, only for goods having preferential origin status in the context of preferential trade relations with one of the countries with which pan-Euro-Mediterranean cumulation of origin is applicable.</span>

<span lang="EN-US" style="
line-height:107%;">(5) Place and date of issue</span>

<span lang="EN-US" style="
line-height:107%;">(6) Name and position of the undersigned, name and address of company</span>

<div id="bkmrk-%287%29-signature" style="margin:0cm;font-size:11.0pt;font-family:"Calibri",sans-serif;margin-bottom:8.0pt;line-height:107%;"><span lang="EN-US" style="
line-height:107%;">(7) Signature</span>

</div><div id="bkmrk--3" style="margin:0cm;font-size:11.0pt;font-family:"Calibri",sans-serif;margin-bottom:8.0pt;line-height:107%;"><span lang="EN-US" style="
line-height:107%;">  
</span></div><div id="bkmrk-%5Bto-be-printed-on-co-1" style="margin: 0cm 0cm 8pt; font-size: 11pt; font-family: Calibri, sans-serif; line-height: 107%; text-align: center;"><span style="color: rgb(68, 114, 196); font-family: Calibri, sans-serif; font-size: 14.6667px; font-style: normal; font-weight: 400; text-align: center; text-indent: 0px; text-transform: none; white-space: normal; background-color: rgb(255, 255, 255); display: inline !important; float: none;">\[TO BE PRINTED ON COMPANY LETTERHEAD\]</span></div><div id="bkmrk--4" style="margin: 0cm 0cm 8pt; font-size: 11pt; font-family: Calibri, sans-serif; line-height: 107%; text-align: center;"><span style="color: rgb(68, 114, 196); font-family: Calibri, sans-serif; font-size: 14.6667px; font-style: normal; font-weight: 400; text-align: center; text-indent: 0px; text-transform: none; white-space: normal; background-color: rgb(255, 255, 255); display: inline !important; float: none;">  
</span><span lang="EN-US" style="
line-height:107%;">  
</span></div>**<span lang="EN-US" style="line-height:107%;">LONG-TERM SUPPLIER'S DECLARATION</span>**

<span lang="EN-US" style="line-height:107%;"></span>

<span lang="EN-US" style="
line-height:107%;">I, the undersigned, declare that the goods described below:</span>

<span lang="EN-US" style="
line-height:107%;">…………………………………………………………………….(1)</span>

<span lang="EN-US" style="
line-height:107%;">…………………………………………………………………….(2)</span>

<span lang="EN-US" style="
line-height:107%;">Which are regularly supplied to ………………………………….(3), originate in ……………………………….(4) and satisfy the rules of origin governing preferential trade with ……………………………………………(5).</span>

<span lang="EN-US" style="
line-height:107%;"></span>

<span lang="EN-US" style="
line-height:107%;">I declare that (6):</span>

<span style="position:relative;"><span style="position:absolute;left:1px;top:-73px;width:12px;height:12px;">  
</span></span><span style="position:relative;"><span style="position:absolute;left:1px;top:-51px;width:12px;height:12px;">  
</span></span><span lang="EN-US" style="line-height:107%;"><span> ![editor_310_5_03dcdb43-1ce4-4077-89ef-9f4048632165_rte_image_282.png](https://www.bzctrl.com/bzctrl-core-api/api/v1/download/editor_310_5_03dcdb43-1ce4-4077-89ef-9f4048632165_rte_image_282.png) </span>Cumulation applied with …………………………………(name country/countries)</span>

<span lang="EN-US" style="
line-height:107%;"><span> ![editor_310_5_e5c6b2a4-db08-4e7b-b34d-a5de19884987_rte_image_290.png](https://www.bzctrl.com/bzctrl-core-api/api/v1/download/editor_310_5_e5c6b2a4-db08-4e7b-b34d-a5de19884987_rte_image_290.png) </span>No cumulation applied</span>

<span lang="EN-US" style="
line-height:107%;"></span>

<span lang="EN-US" style="
line-height:107%;">This declaration is valid for all shipments of these products dispatched from ......................................... to </span>

<span lang="EN-US" style="
line-height:107%;">...............................(7)</span>

<span lang="EN-US" style="
line-height:107%;"></span>

<span lang="EN-US" style="
line-height:107%;">I undertake to inform ............................................(3) immediately if this declaration is no longer valid.</span>

<span lang="EN-US" style="
line-height:107%;">I undertake to make available to the customs authorities any further supporting documents they require.</span>

<span lang="EN-US" style="
line-height:107%;">……………………………………………………………………….…. (8)</span>

<span lang="EN-US" style="
line-height:107%;">………………………………………………………………………….. (9)</span>

<div id="bkmrk-%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6%E2%80%A6-7"><span lang="EN-US" style="font-size:11.0pt;font-family:"Calibri",sans-serif;">……………………………………………………………………..…… (10)</span></div><div id="bkmrk--5"><span lang="EN-US" style="font-size:11.0pt;font-family:"Calibri",sans-serif;">  
</span></div><div id="bkmrk-____________________-1" style=" padding: 0px; margin: 0px; color: rgb(51, 51, 51); font-family: Roboto, "Segoe UI", GeezaPro, "DejaVu Serif", "sans-serif", -apple-system, "system-ui"; font-size: 14px; font-style: normal; font-weight: 400; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; background-color: rgb(255, 255, 255);"><span lang="EN-US" style=" padding: 0px; margin: 0px; font-size: 11pt; font-family: Calibri, sans-serif;">\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_</span></div><div id="bkmrk--6" style=" padding: 0px; margin: 0px; color: rgb(51, 51, 51); font-family: Roboto, "Segoe UI", GeezaPro, "DejaVu Serif", "sans-serif", -apple-system, "system-ui"; font-size: 14px; font-style: normal; font-weight: 400; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; background-color: rgb(255, 255, 255);"><span lang="EN-US" style=" padding: 0px; margin: 0px; font-size: 11pt; font-family: Calibri, sans-serif;">  
</span></div>*<span lang="EN-US" style=" padding: 0px; margin: 0px; font-size: 12pt; line-height: 17.12px;">Footnotes (can be removed after completion)</span>*

<div id="bkmrk-____________________-2" style=" padding: 0px; margin: 0px; color: rgb(51, 51, 51); font-family: Roboto, "Segoe UI", GeezaPro, "DejaVu Serif", "sans-serif", -apple-system, "system-ui"; font-size: 14px; font-style: normal; font-weight: 400; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; background-color: rgb(255, 255, 255);"><span lang="EN-US" style=" padding: 0px; margin: 0px; font-size: 11pt; font-family: Calibri, sans-serif;">\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_</span></div><div id="bkmrk--7" style=" padding: 0px; margin: 0px; color: rgb(51, 51, 51); font-family: Roboto, "Segoe UI", GeezaPro, "DejaVu Serif", "sans-serif", -apple-system, "system-ui"; font-size: 14px; font-style: normal; font-weight: 400; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; background-color: rgb(255, 255, 255);"><span lang="EN-US" style=" padding: 0px; margin: 0px; font-size: 11pt; font-family: Calibri, sans-serif;">  
</span></div>*<span lang="EN-US" style=" padding: 0px; margin: 0px; font-size: 12pt; line-height: 17.12px;">Footnotes (can be removed after completion)</span>*

<span lang="EN-US" style="
line-height:107%;">(1) Description </span>

<span lang="EN-US" style="
line-height:107%;">(2) Commercial designation as used on the invoices e.g. Model No </span>

<span lang="EN-US" style="
line-height:107%;">(3) Name of the company to which goods are supplied</span>

<span lang="EN-US" style="
line-height:107%;">(4) The European Union, country, group of countries or territory, from which the goods originate </span>

<span lang="EN-US" style="
line-height:107%;">(5) Country, group of countries or territory concerned</span>

<span lang="EN-US" style="
line-height:107%;">(6) To be completed, where necessary, only for goods having preferential origin status in the context of preferential trade relations with one of the countries with which pan-Euro-Mediterranean cumulation of origin is applicable.</span>

<span lang="EN-US" style="
line-height:107%;">(7) Give the start and end dates. The period shall not exceed 24 months.</span>

<span lang="EN-US" style="
line-height:107%;">(8) Place and date of issue</span>

<span lang="EN-US" style="
line-height:107%;">(9) Name and position of the undersigned, name and address of company</span>

<div id="bkmrk-%2810%29-signature"><span lang="EN-US" style="font-size:11.0pt;font-family:"Calibri",sans-serif;">(10) Signature</span></div>