# 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.

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</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.

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</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).

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</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.

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</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.