Rules of Origin

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Rules of Origin

“Rules of Origin” are legal regulations that establish criteria for determining the country of origin of goods, which subsequently affects their treatment in terms of tariffs, trade agreements, and customs procedures. These rules are designed to prevent trade fraud, ensure fair competition, and determine the eligibility of goods for preferential tariff rates under trade agreements. Rules of Origin consider factors such as the substantial transformation of materials, the percentage of value added within a specific country, or the adherence to specific manufacturing processes. By determining the origin of goods, rules of origin play a crucial role in determining the applicable customs duties, trade barriers, and preferential treatment, allowing countries to enforce trade policies and safeguard their domestic industries.

 

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