Preferential and non-preferential origin
There are two main categories of origin:
- Non-preferential origin, which identifies the country of origin for the purposes of applying anti-dumping duties, embargoes, quantitative restrictions or safeguard measures;
- Preferential origin, which allows access to tariff exemptions or reductions provided for in trade agreements between the European Union and certain Third countries .
The correct management of origin
Determining origin requires an in-depth technical analysis of the production process, the raw materials used, and the rules laid down in each trade agreements. Preferential origin, in particular, demands the most attention, as it is subject to stringent criteria defining when a product can be considered “originating”.
The risks of inadequate management of origin
Inadequate determination of origin can result in customs duty recoveries, penalties, and the loss of tariff benefits already obtained. For this reason, companies must adopt robust internal systems to verify, document and store information in a compliant manner.