Rules of origin

Definition and principle

Rules of origin constitute the set of legal and technical criteria used to determine the country of origin of goods. They play a fundamental role in international trade as origin determines the applicable customs treatment: duty rate, trade policy measures, eligibility for tariff preferences.

Legal framework

Rules of origin are divided into two main categories:

• Preferential rules: defined in the origin protocols of EU free trade agreements (CETA, JEFTA, TCA, Mediterranean agreements, GSP, PEM convention)
• Non-preferential rules: defined by articles 22 to 26 of the UCC and Delegated Regulation 2015/2446 (Annex 22-01)

At the international level, the WTO Agreement on Rules of Origin and Specific Annex K of the revised Kyoto Convention provide the reference framework.

Fundamental concepts

• Wholly obtained goods: natural products, animals born and raised, fish caught in territorial waters, etc.
• Sufficient transformation: the product manufactured from non-originating materials must satisfy a specific criterion (CTC, value added, specific processing)
• Origin cumulation: possibility of taking into account materials or processing from a partner country
• Minimal operations: list of operations that are never considered sufficient (packaging, sorting, labelling, etc.)

Current challenges

• The multiplication of free trade agreements complicates origin management for companies ("spaghetti bowl" effect)
• Digitalisation of proofs of origin (REX, electronic declarations) simplifies procedures but requires adapted IT systems
• Geopolitical tensions strengthen the importance of rules of origin in reshoring and supply chain diversification strategies