Non-preferential origin and sustainability: the real rules of origin challenge

Preferential rules of origin are one of the most complex areas of customs. This type of origin is used to check whether a product is eligible for a reduced tariff under a trade agreement such as the CPTPP, UMSCA, the TCA and many more.

But for many companies, where the big savings or costs actually lie is non-preferential origin. This type of origin is used for many trade policy measures recently applied by the EU or US, such as anti-dumping and countervailing duties, quotas, trade embargoes, certain types of sanctions and other quantitative restrictions.

While tariffs rarely exceed 20% of the value of the product, anti-dumping duties can be 100%, 200% and upwards. So it’s often much more important to correctly determine a product’s non-preferential origin.

Many of the policies and measures introduced as part of the EU’s broadly defined sustainability agenda rely on non-preferential origin. For CBAM, Deforestation Regulation or anti-subsidy tariffs on Chinese EVs, whether or not the product is subject to the requirements under these regulations will depend on its non-preferential origin.

Unfortunately, non-preferential origin can often be more difficult to determine than preferential origin. This is because non-preferential rules of origin are not as well defined and leave plenty of room for interpretation.

The second session of our Summer Series focused on the most common difficulties and challenges when it comes to determining non-preferential origin. And how should companies prepare for the potential challenges to the on-preferential origin of their products by national customs authorities? 

The webinar covered the following topics:

• Providing a brief overview of some of the sustainability and trade defense policies that rely on non-preferential origin.
• Explaining where non-preferential rules of origin come from and what their main principles are.
• Showcasing why non-preferential origin can be so difficult to determine.
• Presenting practical case studies and examples.
• Offering advice for businesses and customs professionals when it comes to working with non-preferential origin.

Please find the slides in the resources section.