Rules of origin

As an exporter from a developing country, it is possible to get a reduced or abolished tariff when exporting to the European Union due to different preferential agreements between the EU and other countries. The rules of origin are used to establish whether a product originates in one of the preferential partner countries and to prevent  goods from other countries being routed via a preferential partner country to avoid higher duties.

Rules of origin define the level of processing that must take place or value that must be added in a country in order for a product to be considered as having its origin in that country. In broad terms, it can be said that:

• A product originates from the country where it is extracted from the ground, the sea or from animals, or if it is manufactured completely from materials and labour in that country;

• If a product is made from materials and labour from more than one country, it originates from the country where (in the production chain) it was last substantially changed.

To receive the lower duty rate or duty-free treatment, the rules of origin have to be met and the product has to be accompanied by a certificate of origin.