EU customs – “Origin” of goods

Origin of goods is another factor which impacts on the customs duty payable in the country of importation:

  • —Many agreements (e.g. FTAs) between the EU and other countries offering a favourable duty rate on imports.
  • —Duty-free trade between partner countries is possible
  • —FTAs have complex systems of determining preferential origin (rules of origin)
  • —Failure to comply with these rules of origin on the exporting side could lead to costly problems on the importing side – leading to reputational issues for exporters
  • —“Non-preferential origin” is often ignored to the detriment of exporters – rules to establish origin for purposes unrelated to preferential duty rates e.g. anti-dumping.
  • —The EU and US have made extensive use of such measures for retaliatory purposes or domestic manufacturers are becoming more aggressive
  • —Exporters should be familiar with potential problems in the importing country & have risk management strategies in place.
  • —Importers may ask for EU-wide binding rulings on the origin of their products

For further information please contact us.