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What is the Country of Origin? 

Let’s discuss the following example: A car manufactured in Japan has been imported to Germany and sold by a German car dealer to a customer in the Netherlands. While the Dutch customer could say he bought a German car, the car was still manufactured in Japan.

From a customs point of view, the country where it was manufactured can change if the product is processed (changed) before it is sold. Let’s say the German company that imported the car takes out the gas engine and installs an electrical drive train, making it an electric vehicle. The country of origin is now Germany.

Country Origin Services

An important aspect of origin is the difference between preferential- and non-preferential origin.

Preferential origin

If your a product has a preferential status, it might be possible to import the product against lower or even no import duties.

Non-Preferential origin

The non-preferential origin doesn’t have any impact on the number of import duties but is important in certain cases, for example, if anti-dumping rates are applicable.

Proof of origin

If certain components were bought and re-sold several times proof of origin can be required from all these steps. Proving preferential origin always includes valid background paperwork in the exporters’ administration.

Know the rules, know your product.

Did you also know that a lot of documentation is involved to prove the origin? If components were processed in one of these steps it gets even more complicated. Proving preferential origin always requires valid background paperwork in the exporters’ administration. Customs Support has experienced people to look at your specific situation, analyse the goods flow and determine whether a product meets the rules of origin.

Are you curious about what we can do for your organisation?

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Country of Origin Determination | Frequently Asked Questions (FAQs)

Origin helps the importer know where a product comes from. Country of origin determines duty rates, preferential trade agreements, trade sanctions and import quotas. So ensuring accurate country of origin is essential for both importers as well as exporters.