Non-preferential origin: determination and list rules
UCC Art. 59-63 - wholly obtained products, last substantial transformation, list rules Annex 22-01 (DA 2015/2446)
15 min readUpdated: March 2026
Definition and stakes of NPO
Non-preferential origin (NPO) is the economic "nationality" of a good. It is the common law origin, determined according to the rules of the Union Customs Code (UCC) and its delegated acts. It applies to all goods, regardless of destination or provenance.
NPO must not be confused with:
Provenance - the last country of physical shipment (logistics flow). A product manufactured in China, transiting through Singapore, comes from Singapore but has China as its origin.
EU customs status - indicates whether customs duties have been paid. A product cleared in the EU has "EU" status but retains its origin (e.g.: origin China, status EU).
Preferential origin - determined by free trade agreements (PEM, GSP, TCA) to benefit from reduced or zero duty rates. The rules differ from NPO.
NPO is used for:
Origin marking ("Made in") - mandatory for many products marketed in the EU
Embargoes and sanctions - origin determines whether a good is subject to trade sanctions
Legal basis
NPO determination relies on a hierarchy of European legal texts:
Union Customs Code (UCC)
Regulation (EU) No 952/2013
Articles 59 to 63, in particular Article 60 which establishes the two fundamental principles: goods wholly obtained in a single country (Art. 60.1) and last substantial transformation or working (Art. 60.2).
For products not covered by Annex 22-01, the EU position in WTO negotiations on non-preferential rules of origin serves as a reference.
Decision tree - the 4 steps
NPO determination follows a logical 4-step path. Each step must be evaluated in order.
A
Step A - Wholly obtained product?
Art. 31 DA 2015/2446
If your goods were wholly obtained in a single country, without any imported materials, the origin is automatically that country. This is the simplest case.
YES (1 single country involved) - origin is the country of obtaining
NO (materials from multiple countries) - proceed to step B
The 10 categories of wholly obtained products (Art. 31):
a) Mineral products extracted from the soil or seabed of the country
b) Vegetable products grown and harvested in the country
c) Live animals born and raised in the country
d) Products derived from live animals raised in the country
e) Products of hunting or fishing carried out in the country
f) Products of sea fishing and other products taken from the sea by vessels of the country
g) Goods manufactured aboard factory ships of the country from products referred to in point (f)
h) Used articles collected in the country fit only for the recovery of raw materials
i) Waste and scrap resulting from manufacturing or processing operations in the country
j) Goods manufactured in the country exclusively from products referred to in points (a) to (i)
B
Step B - Minimal operations?
Art. 34 DA 2015/2446
When the product is not wholly obtained, you must check whether the processing carried out in the last country is merely a "minimal operation". If so, this operation does NOT confer origin.
Even the combination of several minimal operations remains a minimal operation and does not confer origin.
List of minimal operations (Art. 34):
a) Preservation operations during transport and storage (ventilation, spreading, drying, refrigeration, placing in salt water or other solutions, removal of damaged parts)
b) Simple operations of dusting, sifting, screening, sorting, classifying, matching (including the making-up of sets), washing, painting, cutting
c) Changes of packaging, breaking-up and assembly of packages, simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on boards and all other simple packaging operations
d) Presenting goods in sets or ensembles, or presenting for sale
e) Affixing marks, labels, logos or other similar distinguishing signs on products or their packaging
f) Simple assembly of parts of articles to constitute a complete article, or disassembly of products into parts
g) Combination of two or more operations referred to in points (a) to (f)
h) Slaughter of animals
If the processing IS a minimal operation, it does not confer origin. The country of origin remains the one where the last substantial transformation took place.
C
Step C - List rules
Annex 22-01 DA + EU WTO position
This is the main step. For products processed in multiple countries, product-specific rules determine whether the transformation confers origin. These rules are called "list rules".
2 sources of list rules:
●Source 1: Annex 22-01 of Delegated Regulation (EU) 2015/2446 - binding EU law rules
●Source 2: EU position at the WTO - for products not covered by Annex 22-01
3 types of criteria used:
Value criterion
A minimum percentage of value added must be achieved in the country of processing. Example: "Working in which the value of all materials used does not exceed 45% of the ex-works price of the product".
Specific working criterion
A particular manufacturing process must have been carried out. Example: "Complete making-up, including the cutting of fabric" for garments.
Tariff classification change criterion
The tariff classification (HS code) of the finished product must differ from that of the non-originating materials used.
CC - change of chapter (first 2 digits of the HS)
CTH - change of tariff heading (first 4 digits of the HS)
CSP/CTSH - change of tariff sub-heading (first 6 digits of the HS)
Concrete examples for each criterion type:
Value criterion - HS 8529 (TV parts)
"Working in which the value of all the materials used does not exceed 45% of the ex-works price". If imported components represent 40% of the final price, the criterion is met.
Specific working - HS 4203 (leather garments)
"Complete making-up including cutting of the fabric or leather". Simple assembly of pre-cut pieces is not sufficient; cutting must take place in the country claiming origin.
Tariff shift - Illustration
CC = change of chapter (e.g. ch.3 fish to ch.16 preserved food). CTH = change of heading (e.g. 8528 monitors to 8525 cameras). CTSH = change of subheading (e.g. 8422.90 parts to 8422.40 packing machines).
Origin: China. Labeling and packaging are minimal operations (Art. 34 e) and c)) that do not confer origin. The country of origin remains that of the last substantial transformation.
Origin: Switzerland. All non-originating materials (5204, 5211, 8308) are classified under different headings than the finished product (9113). The CTH criterion is satisfied.
Documents attesting NPO
At importation into the EU
In principle, no certificate of origin is mandatory for importation into the EU. The indication of non-preferential origin on the SAD (Single Administrative Document), box 34, is sufficient.
Exceptions: certain special regimes may require a certificate of origin - anti-dumping duties, tariff quotas, safeguard measures. In these cases, customs may request a certificate issued by an authority or approved body in the country of origin.
At exportation from the EU
The certificate of origin is issued by the Chambers of Commerce and Industry (CCI). It follows the model in Annex 22-14 of Implementing Regulation (EU) 2015/2447.
It is generally required by the importing country, particularly for countries that apply differentiated customs duties based on origin.
Securing origin - the BOI
The Binding Origin Information (BOI) is a binding administrative decision that secures the determination of the non-preferential origin of your goods.
Legal force
Binding decision for the customs authorities of all EU Member States.
Validity
3 years from the date of effect. Renewable.
Free of charge
BOI applications are free. To be submitted to the competent customs office.
Legal basis
Article 33 of the UCC (Regulation (EU) No 952/2013).
If in doubt about the origin of your products, the BOI is the best way to secure your position. It protects you in case of a customs audit.