Preferential origin: cut import duties with the right proof of origin

Preferential and non-preferential origin

Non-preferential origin is the "economic nationality" of goods. It is used to apply trade policy measures (anti-dumping duties, quotas, "made in" marking) and for statistics. The country of origin declared is, in principle, this one.

Preferential origin only applies to trade covered by a preferential agreement or scheme. It follows the specific rules of each agreement and gives access to a reduced duty rate. Goods can therefore be of Chinese non-preferential origin and get no preference, or be made in Japan and benefit from the EU-Japan agreement if its rules are met.

When do goods qualify as originating?

• They are wholly obtained in the partner country: crops harvested, minerals extracted, animals born and raised there
• Or they underwent sufficient processing there, defined product by product in the agreement: change of tariff heading, maximum share of non-originating materials, specific manufacturing process
• Minimal operations (packing, labelling, simple assembly, mixing) never confer origin
• Cumulation allows, depending on the agreement, materials from the EU or other partner countries to count as originating

Proofs of origin

Each agreement specifies the proof required. The most common are:

• The EUR.1 (or EUR-MED) movement certificate, endorsed by the authorities of the exporting country
• The origin declaration on the invoice, made out by the exporter, with its approved exporter number where the agreement requires it
• The statement on origin made out by an exporter registered in the REX system, used in particular for the Generalised Scheme of Preferences (GSP) and several recent agreements
• Under some agreements, importer's knowledge: the importer claims the preference based on information it holds about the origin

Registered exporters (REX) and the €6,000 threshold

Under agreements and schemes that use the REX system, the exporter must be registered and state its number on the statement on origin when the value of originating products in the consignment exceeds €6,000. Below that threshold, any exporter can generally make out the statement. Check the exact conditions in the text of the relevant agreement.

For exporters: proving the origin of your products

An exporter making out an origin declaration is liable for it. If audited, it must be able to show that the product meets the rule of origin: bill of materials, origin and value of each material, supplier's declarations. For materials bought in the EU, the supplier's declaration (single or long-term) certifies their originating status.

Common mistakes

• Confusing country of dispatch and country of origin
• Claiming a preference with no proof of origin, or with a proof made out for another agreement
• Using incomplete origin declaration wording, or wording not provided for in the agreement
• Leaving out the REX number above the €6,000 threshold
• Declaring as originating a product only assembled or repacked in the partner country
• Not keeping supporting documents: customs can verify origin after clearance and recover duties

Frequently asked questions