In determining the origin of a product this may prove challenging when raw materials and parts are used as inputs in manufacturing plants in different countries. Rules of origin are important in implementing such trade policy instruments as anti-dumping and countervailing duties, origin marking, and safeguard measures.
Rules of origin are the criteria needed to determine the national source of a product. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of the imports. The practice of countries varies with regard to the rules of origin. While the requirement of substantial transformation is universally recognized, some countries apply the criterion of change of tariff classification, others the ad valorem percentage criterion and others the criterion of manufacturing or processing operation.
Differences in the practices of countries in the applicable rules of origin often present challenges to companies doing business in several jurisdictions.
At SAMUEL BECKFORD we provide advice and counseling on issues relating to rules of origin to navigate market access for businesses trading across different regions and regional trading agreements.