How to apply rules of origin to your product

What are rules of origin?

Rules of origin (ROO: rules of origin) determine the "economic nationality" of goods that are exported and imported.

They are used to assess how much of a product originates in a given country, and how much value was added to it during the manufacturing process.

ROO can be found in trade agreements and other legal acts in force between countries.

How ROO affect your business

A product's country of origin can determine the level of duty applied, and sometimes decide whether it can be exported to a particular country at all.

For example, the United Kingdom has signed trade agreements with a number of countries that guarantee preferential (i.e. lower or zero) tariff rates and fewer export restrictions for products of UK origin. However, you must be able to demonstrate the UK origin of your product to benefit from this.

By applying ROO to accurately determine your product's origin, you can allow the importer to pay a lower - or zero - tariff. This is potentially a win-win situation, since it lowers their costs and is likely to make your exports more competitive.

When to consider ROO in export planning

ROO currently apply to exports from the United Kingdom to the EU, as well as to some other countries with which the UK has trade agreements.

Applying ROO

ROO requirements and preferential rates can vary depending on the export destination.

Exporting to the EU

Under the Trade and Cooperation Agreement, goods from the United Kingdom shipped to EU markets may avoid tariffs entirely or benefit from a preferential, i.e. lower or zero, rate.

What "sufficiently processed" means

There are 3 rules that help you decide whether your exports have been sufficiently processed:

Exporting to non-EU markets

Outside the EU, ROO requirements will vary between countries.

Checklist - does your product qualify as UK origin?

To check whether your product can be classified as originating in the United Kingdom, ask yourself these 4 questions:

Where to get help

Rules of origin can be complicated. Speaking with a local international trade advisor is a good first step.

However, be aware that final responsibility for correctly applying the rules always rests with your company - regardless of where you seek advice and support.

Watch the video: How to Apply Rules of Origin to Your Product