Preferential treatment based on origin

The country of origin refers to the country where the goods originate, that is, where they were produced or manufactured.

If the manufacture of the goods involved at least two countries, the country of origin is deemed to be the country where the goods underwent their last, substantial, economically-justified processing or working resulting in the manufacture of a new product. For instance, packaging, sorting or other similar operations of minor importance are not considered to be manufacture.

According to the statistical provisions, the country of dispatch is entered as the country of origin when

• the country of origin of the goods is not known and it can’t be established
• the goods are returned goods or otherwise originate in the Union
• the goods are covered by chapter 97 of the customs tariff
• the goods have been imported after outward processing (the nature of transaction code in column 24 is 51, 52 or 53).

 The exporter must prove the origin of the goods with a proof of origin. Proofs of origin include statements on origin and origin declarations, which are made out using a standard wording in a specified format.

Example of a statement on origin according to the EU-UK free trade agreement:

(Period: from……………………………….to ………………………. (1))
The exporter of the products covered by this document (Exporter Reference No………………………… (2)) declares that, except where otherwise clearly indicated, these products are of ………………………….. (3) preferential origin.

.............................................................................................................................................................................................. (4) (Place and date)
.............................................................................................................................................................................................. (Name of the exporter)

• If the statement on origin is completed for multiple shipments of identical originating products within the meaning of point (b) of Article 56(4) of this Agreement, indicate the period for which the statement on origin is to apply. That period must not exceed 12 months. All importations of the product must occur within the period indicated. If a period is not applicable, the field may be left blank.
• Indicate the reference number by which the exporter is identified. For the Union exporter, this will be the number assigned in accordance with the laws and regulations of the Union. For the United Kingdom exporter, this will be the number assigned in accordance with the laws and regulations applicable within the United Kingdom. Where the exporter has not been assigned a number, this field may be left blank.
• Indicate the origin of the product: the United Kingdom or the Union.
• Place and date may be omitted if the information is contained on the document itself.

Example: Statement on origin according to the EU-Japan free trade agreement 
The exporter must prove the origin of the goods with a proof of origin. Proofs of origin include statements on origin and origin declarations, which are made out using a standard wording in a specified format.

Example of a statement on origin according to the EU-Japan free trade agreement:

 (Period: from ......................................................................... to.........................................................................(3))
 The exporter of the products covered by this document (Exporter Reference No .............. (4)) declares that, except where otherwise clearly indicated, these products are of ........................................................................ preferential origin (5).

(Origin criteria used (4))
............................................................................................
(Place and date (5))
………………………………………………………………………………………..
(Printed name of the exporter)
............................................................................................

• If the statement on origin is completed for multiple shipments of identical originating products within the meaning of subparagraph 5(b) of Article 3.17, indicate the period for which the statement on origin will apply. That period must not exceed 12 months. All importations of the product must occur within the period indicated. If a period is not applicable, the field may be left blank.
• Indicate the reference number by which the exporter is identified. For the European Union exporter, this will be the number assigned in accordance with the laws and regulations of the European Union. For the Japanese exporter, this will be the Japan Corporate Number. Where the exporter has not been assigned a number, this field may be left blank.
• Indicate the origin of the product: the European Union or Japan.
• Indicate, depending on the case, one or more of the following codes: 
  • "A" for a product referred to in subparagraph 1(a) of Article 3.2
  • "B" for a product referred to in subparagraph 1(b) of Article 3.2
  • "C" for a product referred to in subparagraph 1(c) of Article 3.2.
• Indicate also the following additional information on the type of product specific requirement actually applied to the product:
  • "1" for a change in tariff classification rule
  • "2" for a maximum value of non-originating materials or a minimum regional value content rule
  • "3" for a specific production process rule
  • "4" in case of application of the provisions of Section 3 of Appendix 3-B-1
  • "D" for accumulation referred to in Article 3.5
  • "E" for tolerances referred to in Article 3.6.
• Place and date may be omitted if the information is contained on the document itself.

The exporter must prove the origin of the goods with a proof of origin. Proofs of origin include statements on origin and origin declarations, which are made out using a standard wording in a specified format.

Example of an origin declaration according to the transitional rules of origin of the pan-Euro-Mediterranean (PEM) area and the PEM Convention
Please note that if the new transitional rules of the PEM area that entered into force on 1 September 2021 have been used when determining the origin of the goods, you should enter the text “according to the transitional rules of origin” after “(2) preferential origin” as shown below. If you leave out this text, the rules of the current PEM Convention will be applied to the goods.

The exporter of the products covered by this document (customs authorization No ........................... (1)) declares that, except where otherwise clearly indicated, these products are of………………………………. (2) preferential origin (*according to the transitional rules on origin).

If the new transitional rules of origin of the PEM area have been applied in determining the origin of the product, the exporter must indicate this at the end of the origin declaration as shown above. If the rules of origin of the PEM Convention have been applied in determining the origin, this text is left out or, correspondingly, the text “according to the PEM Convention rules of origin” entered instead.
..............................................................................................................................................................................................(Place and date) (3)
..............................................................................................................................................................................................

(Signature of the exporter, in addition the name of the person signing the declaration has to be indicated in clear script) (4)

• When the origin declaration is made out by an approved exporter, the authorisation number of the approved exporter must be entered in this space. When the origin declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.
• The origin of the products must be indicated. When the origin declaration relates in whole or in part, to products originating in Ceuta and Melilla, the exporter must clearly indicate them in the document on which the declaration is made out, by means of the symbol ‘CM’.
• These indications may be omitted if the information is contained on the document itself.

The exporter must prove the origin of the goods with a proof of origin. Proofs of origin include statements on origin and origin declarations, which are made out using a standard wording in a specified format.

Example of an origin declaration according to the EU-South Korea free trade agreement:

The exporter of the products covered by this document (customs authorisation No……………………….. (1)) declares that, except where otherwise clearly indicated, these products are of ………………….…… (2) preferential origin.
..................................................................................................… (3)
(Place and date)
..................................................................................................… (4)

(Signature of the exporter, in addition the name of the person signing the declaration has to be indicated in clear script)

• When the origin declaration is made out by an approved exporter, the authorisation number of the approved exporter must be entered in this space. When the origin declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.
• The origin of the products must be indicated. When the origin declaration relates, in whole or in part, to products originating in Ceuta or Melilla, the exporter must clearly indicate them in the document on which the declaration is made out, by means of the symbol ‘CM’.
• These indications may be omitted if the information is contained on the document itself.
• In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory.

When claiming preferential treatment for an originating product based on importer’s knowledge, the importer has a particular responsibility for the information. The claim for preferential treatment must always be based on information that is in the possession of the importer before the claim for preferential treatment is made. With this information, the importer must be able to prove, on Customs’ request, that the goods are regarded as originating products under the agreement’s rules of origin. If Customs wishes to verify the origin of the products after their release, the verification only concerns the importer and the evidence in the importer’s possession. The exporter or the authorities of the export country are not required to participate in the post-release verification process.

What information can Customs demand from the importer?

If the preferential treatment has been granted based on importer’s knowledge, the importer may be asked to provide information for a post-release verification detailing the manufacturing process of the products, the acquisition prices of materials and the acquisition countries. The importer must make sure they have the required information when applying for preferential treatment. 

If Customs asks for information, the importer must submit it within three months of the date of Customs’ request for information. If Customs subsequently asks for additional information, it must also be submitted within three months. If the importer does not respond to Customs’ request for information within the time limit, or does not provide sufficient details for verifying the origin of the product, the preferential treatment may be denied. Furthermore, once preferential treatment has been sought based on importer’s knowledge, it is not possible to claim it again based on a statement origin, even if the exporter makes out such a statement for the importer.

You can request Customs to amend the customs clearance decision so that the full customs duty already levied is changed into a preferential duty. The change will also affect the amount of VAT levied.

Read more: Amendment of a declaration after release

The origin declared for the product in the proof of origin can be verified subsequently in the country where the proof of origin was issued. If the origin of the goods declared upon import and proven with a proof of origin is proven false by subsequent verification, full customs duties must be paid for the product through post-clearance recovery. The competence of the authority who endorsed the certificate of origin or the authenticity of the certificate of origin (fake certificates) can also be checked.