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:
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Wholly obtained requirement;
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Change in Tariff Heading (CTH);
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Value limitation rule (maximum % of non-originating materials);
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Specific manufacturing process.
Step 4 - Identify and Value Materials
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List all originating and non-originating materials used in production.
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Calculate the ex-works price of the final product.
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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.
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Bilateral cumulation: between the two agreement partners.
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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:
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Statement on Origin (self-certification); or
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Movement Certificate (EUR.1) where applicable.
Step 8 - Record-Keeping and Evidence
Maintain all origin-related documents for at least 3-5 years:
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Supplier declarations;
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Cost breakdowns;
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Production records;
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Tariff classification evidence.
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