Rules of Origin
Origin rules are used to determine the national/territorial provenance of goods for trade purposes. The Community has two types: non-preferential and preferential.
Non-preferential rules
Define the origin of a good for the purpose of such matters as trade defence, trade statistics and import quotas. Such rules are important when trade measures, for example anti-dumping or quantitative restrictions apply to goods imported from one country but not another. The rules must be applied objectively and in a non-discriminatory way since the origin of goods is essentially a matter of fact.
The non-preferential rules provide for origin to be obtained in one of two ways. First, goods can be "wholly obtained or produced" in a country. Second, in cases where goods are the product of two or more countries, they are deemed to originate in the country where they underwent "their last, substantial, economically justified working or processing in an undertaking equipped for that purpose and resulting in the manufacture of a new product or representing an important stage of manufacture". This is generally not further defined but in some cases, for example textiles, there are specific rules interpreting the last substantial process. The specific rules are expressed by a change of tariff heading requirement, a defined origin conferring process or a minimum added value. Community law and practice complies with international standards.
A copy of the Community's Non-Preferential Rules of Origin can be viewed and downloaded via the link on the right hand side of the page.
Preferential origin rules
The Community's preferential agreements all contain origin rules which must be fulfilled in order that goods may qualify for preference. Such rules ensure that goods from countries not party to the preferential arrangements cannot be diverted via a preferential partner to circumvent the EC tariff. Under the rules products acquire origin if they are wholly produced or if they are sufficiently processed in the preferential partner. Preferential rules, which are often stricter, are defined by members of regional free trade areas (or other countries who have signed up to preferential trade agreements) to ensure that only those goods which genuinely originate in one of the member countries enjoy the low tariffs or other benefits laid down in the agreement.
Full details of the preferential rules of origin and other useful information are in HM Revenue and Customs Notices Nos. 812,826-829, 831 and 832 which can be viewed on the HMRC website. If you have any questions about the notices you should e-mail: enquiries.lon@hmrc.gsi.gov.uk
A general guide on the European Community Rules of Origin is available via the related document link on the right hand side of this page.
Harmonised Commodity Description and Coding System (HS)
Any question about origin will be more easily answered if the enquirer knows the European Community commodity code for the goods in question, preferably at ten-digit level. To obtain advice on classification please contact: HM Revenue and Customs Tariff Classification Enquiry Helpline on 01702 366 077 or by e-mail to: classification.tso@hmrc.gsi.gov.uk
Official Journal of the European Communities
From time to time details of changes to the preferential origin rules are published in the Official Journal of the European Union (EU). Most community legislation can now be accessed on the web. A link to the page can be found on the right hand side of the page.
Contacts:
Colin Wray
Trade Policy Unit
Bay 4132
1 Victoria Street
London SW1H OET
Tel: 020 7215 5059
Fax: 020 7215 2234
E-mail: colin.wray@berr.gsi.gov.uk
Cynthia Reid
Trade Policy Unit
Bay 4132
1 Victoria Street
London SW1H OET
Tel: 020 7215 5139
Fax: 020 7215 2234
E-mail: cynthia.reid@berr.gsi.gov.uk
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