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. For advice on non-preferential rules of origin
please contact:
Colin
Wray
Europe and World Trade Directorate (EWT3a)
Bay 4141
1 Victoria Street
London SW1H OET
Tel: 020 7215 5059
Fax: 020 7215 2234
E-mail colin.wray@dti.gsi.gov.uk
Robert Box
Europe and World Trade Directorate (EWT3a)
Bay 4141
1 Victoria Street
London SW1H OET
Tel: 020 7215 5057
Fax: 020 7215 2234
E-mail robert.box@dti.gsi.gov.ukPreferential
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 otherbenefits laid down in the agreement.
Full details of the preferential rules are in HM Revenue and Customs Notices Nos. 812,826-829
and 832 which can be viewed on the HMRC website . If you have any
questions about the noticesyoushoulde-mail: enquiries.lon@hmrc.gsi.gov.uk
Harmonised
Commodity Description and Coding System (HS)
Any question about origin will be more easily answered if
the enquirer knows the commodity code for the goods in question,
preferably at eight-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.ukOfficial
Journal of the European Communities
From time to time details of changes to the preferential
origin rules are published in the Official Journal. Most community
legislation can now be accessed on the web for two weeks
after the publication date.
Further Information
For additional advice please contact the Department's Europe
and World Trade Directorate, Bay 4141 1 Victoria Street, London SW1H OET
Contact:
Colin
Wray
Europe and World Trade Directorate (EWT3a)
Bay 4141
1 Victoria Street
London SW1H OET
Tel: 020 7215 5059
Fax: 020 7215 2234
E-mail colin.wray@dti.gsi.gov.uk
Robert Box
Europe and World Trade Directorate (EWT3a)
Bay 4141
1 Victoria Street
London SW1H OET
Tel: 020 7215 5057
Fax: 020 7215 2234
E-mail robert.box@dti.gsi.gov.uk
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