Origin of Goods and Preferences

The origin of goods is of great importance in international trade.

A distinction is made between commercial origin and preferential origin.

While commercial origin is primarily relevant for monitoring quotas, contingents, or the imposition of anti-dumping and punitive duties, preferential origin under free trade agreements directly affects the level of import duties.

Goods with preferential origin can usually be imported duty-free into the partner country. Currently, the European Union has implemented free trade agreements with nearly 40 countries.

To achieve preferential origin, the origin rules in the respective free trade agreement must be examined to determine whether they were met during production in the EU.
Traders, on the other hand, require a supplier’s declaration from their EU suppliers to provide the necessary proof of origin when delivering to customers in partner countries.
In addition, some countries require mandatory “Made in” labeling on products.
Determining in which country the essential production steps were carried out to justify the “Made in” marking follows its own set of rules.
Given the complexity of this topic, the agreements, and the varying regulations, it is easy to lose track.

We are happy to advise you on this matter and help optimize your business to take full advantage of all available opportunities.