General Procedure: Determination of Preferential Origin
Step 1 - Identify Applicable Agreement
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.
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.
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).
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.
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.