Preferential origin
Origin status of goods established in accordance with free trade agreement rules, enabling reduced or zero customs duties upon import.
Definition and principle
Preferential origin is the status assigned to goods when they satisfy the rules of origin of a free trade agreement (FTA) or a unilateral preferential regime (GSP). This status grants a preferential tariff treatment: reduced or zero customs duties upon import in the partner country.
Legal framework
Each EU free trade agreement contains a specific origin protocol defining the rules to be met. Major agreements include CETA (EU-Canada), JEFTA (EU-Japan), TCA (EU-UK), Mediterranean agreements, and the GSP for developing countries. The UCC (Regulation EU 952/2013) and its implementing acts frame the general application. The PEM convention provides a common framework for the Euro-Mediterranean zone.
Conditions for obtaining
- The product must be wholly obtained in the partner country, or
- The product must have undergone sufficient working or processing from non-originating materials, in accordance with specific criteria (tariff classification change, value added, specific processing)
- Origin cumulation (bilateral, diagonal, full) may be used to satisfy these criteria
- Compliance with the direct transport rule (or non-alteration) is required
Practical implications
- Preferential origin can reduce customs duties by several percentage points, representing considerable savings for importers
- Obtaining and documenting preferential origin requires rigorous management of the supply chain
- Post-clearance audits by customs authorities can challenge the preferential benefit up to 3 years after import