Preferential origin

Origin & tariff preferences

Principles for classifying a product in the Harmonized System.

Preferential origin is a key concept in international trade, allowing certain products to access reduced or zero customs duties when traded between countries that have signed specific trade agreements. These agreements, often bilateral or regional, aim to stimulate trade by reducing tariff barriers.

How does it work?

For a product to benefit from preferential origin, it must meet strict criteria defined in the relevant trade agreement. These criteria may include requirements on the substantial transformation of the product, the percentage of local added value, or the use of materials originating from the signatory countries.

Benefits for businesses

  1. Cost reduction: By benefiting from reduced customs duties, businesses can lower their import and export costs, thus increasing their competitiveness in the international market.
  2. Easier market access: Products that comply with preferential origin rules can more easily enter new markets, thereby expanding business opportunities.

Practical tips

  • Check the agreements in force: Before exporting, ensure that your product is eligible for preferential origin by consulting the applicable trade agreements.
  • Document correctly: Prepare and keep all necessary documents, such as certificates of origin, to prove your product's compliance.

Useful resources

By understanding and correctly applying the rules of preferential origin, businesses can not only optimize their costs but also strengthen their position in the global market.