Rules of origin: how to prove where your product was made

Rules of origin are the criteria used to determine the national source of a product. They are essential for claiming preferential tariff rates under free trade agreements and for enforcing trade policy measures.

Why Origin Matters

A product's origin determines which tariff rate applies (MFN, preferential, or punitive), whether anti-dumping duties apply, and whether the product is subject to quotas or embargoes.

Types of Origin Criteria

• Wholly obtained — Products entirely grown, harvested, mined, or manufactured in one country (e.g., agricultural products, minerals).
• Substantial transformation — For products using inputs from multiple countries, origin is assigned to the country where the last substantial transformation occurred. This is determined by one or more of the following tests:

1. Change in tariff classification (CTC) — The finished product must fall under a different HS heading than its imported inputs.
2. Value-added threshold — A minimum percentage of the product's value must be added locally (commonly 35–50%).
3. Specific processing rule — The product must undergo specific manufacturing operations in the origin country.

Cumulation

Many FTAs allow cumulation, meaning materials from partner countries within the same agreement can count as local content. This makes it easier to meet origin requirements.

Documentation

Keep production records, bills of materials, supplier declarations, and cost breakdowns. Customs may audit your origin claims retroactively for up to 5 years.