{"source":"https://traddal.com/resources/country-of-origin","title":"Country of origin","description":"How origin is decided when more than one country is involved, why preferential origin is a different test, and how marking works.","robots":"index, follow","updated":"2026-11-06T10:34:48.198Z","breadcrumbs":[{"name":"Resources","url":"https://traddal.com/resources"},{"name":"Country of origin","url":"https://traddal.com/resources/country-of-origin"}],"facts":[],"lede":"How origin is decided when more than one country is involved, why preferential origin is a different test, and how marking works.","sections":[{"id":"overview","title":"","body":[{"type":"prose","text":"Goods take the origin of the country where they were wholly obtained, or, when more than one country is involved, where they last underwent a substantial transformation. It isn't the country you ship from, where your company is, or what the label on the carton says. Since the US now charges different duty by origin on most goods, this one field can be worth more than the classification."}]},{"id":"two-kinds-of-origin-and-two-different-tests","title":"Two kinds of origin, and two different tests","body":[{"type":"table","caption":"Two kinds of origin, and two different tests","columns":[{"header":""},{"header":"Non-preferential"},{"header":"Preferential"}],"rows":[[{"text":"Used for","inline":true},{"text":"MFN rates, trade remedies, sanctions, marking, statistics","inline":true},{"text":"Reduced duty under a [trade agreement](/resources/trade-agreements)","inline":true}],[{"text":"Rule","inline":true},{"text":"Wholly obtained, or last substantial transformation","inline":true},{"text":"Product-specific rule in that agreement","inline":true}],[{"text":"Proof","inline":true},{"text":"A declaration on the invoice, sometimes a [certificate](/resources/certificates-of-origin)","inline":true},{"text":"The agreement's own statement or certificate","inline":true}]],"records":[{"Item":"Used for","Non-preferential":"MFN rates, trade remedies, sanctions, marking, statistics","Preferential":"Reduced duty under a trade agreement"},{"Item":"Rule","Non-preferential":"Wholly obtained, or last substantial transformation","Preferential":"Product-specific rule in that agreement"},{"Item":"Proof","Non-preferential":"A declaration on the invoice, sometimes a certificate","Preferential":"The agreement's own statement or certificate"}]},{"type":"prose","text":"A good can be \"Made in Vietnam\" for marking and duty, yet fail the rule that would let it qualify for a preference under a Vietnam agreement. Keep the two questions apart on your records."}]},{"id":"substantial-transformation-is-judged-differently-by-each-authority","title":"Substantial transformation is judged differently by each authority","body":[{"type":"prose","text":"The [WTO Agreement on Rules of Origin](https://www.wto.org/english/docs_e/legal_e/22-roo_e.htm) points members to the same principle, but its harmonisation work never finished, so the detail stays national.\n\n**EU.** Under Article 60(2) of the Customs Code, the last processing has to be substantial and economically justified, in an undertaking equipped for it, and result in a new product or an important stage of manufacture. Annex 22-01 of the Delegated Regulation has [legally binding rules for listed goods](https://taxation-customs.ec.europa.eu/customs/rules-origin-goods/non-preferential-rules-origin_en), with a residual rule that goes to the country supplying the largest share of materials. For everything else it's assessed case by case.\n\n**US.** The test is whether the article [emerges with a new name, character or use](https://rulings.cbp.gov/ruling/H302358). CBP looks at the origin of components, how much processing occurs in each country, the design work, testing and worker skill, and no single factor decides it. Courts have been reluctant to find a change in character from assembly alone, and [further processing that leaves a product's identity intact fails too](https://rulings.cbp.gov/ruling/n341639): beet concentrate concentrated further in China stayed US or French. CBP [has applied the test to China Section 301 duties](https://rulings.cbp.gov/ruling/H301619): in that ruling a motor assembled in Mexico was Mexican for marking but Chinese for the duty. The July 2026 forced-labour duties apply to \"products of\" each economy, and we found no separate origin rule in that notice. [Textiles and apparel have their own rule](https://www.ecfr.gov/current/title-19/section-102.21), which follows the tariff, and USMCA goods have separate marking rules in part 102.\n\n**The UK and others** have their own rules, so do check. An EU decision doesn't bind the US, or the other way round."}]},{"id":"what-origin-does-to-the-bill","title":"What origin does to the bill","body":[{"type":"prose","text":"These two are our own illustrations, not rulings.\n\n**Assembly that doesn't move origin.** A speaker with a Chinese driver, amplifier and cabinet is put together in Malaysia in about 10 minutes, with screws and a press-fit. Each part already has its character, and the work is simple. Its origin for US purposes is likely to stay China, because nothing new came out of the process.\n\n**Processing that can.** Chinese stainless coil is cut, deep-drawn, welded and finished into cookware in Thailand. The coil has become a new article with a new name and a new use, so a Thai origin is much easier to argue. Cookware of this kind may also meet the metals duties, so check that separately.\n\nNow take a $50,000 line of those speakers, with an assumed 5% general rate, not covered by Section 232, and assume they're on a 25% China Section 301 list. These are the [July 2026 forced-labour rates](https://www.federalregister.gov/documents/2026/07/28/2026-15181/notice-of-actions-in-section-301-investigations-of-acts-policies-and-practices-of-various-economies), as of 5 November 2026, which are 12.5% for China and 10% for Malaysia:"},{"type":"table","caption":"What origin does to the bill","columns":[{"header":"Declared origin"},{"header":"General","align":"right"},{"header":"Forced labour 301","align":"right"},{"header":"China list 301","align":"right"},{"header":"Duty","align":"right"}],"rows":[[{"text":"China","inline":true},{"text":"$2,500","inline":true},{"text":"$6,250","inline":true},{"text":"$12,500","inline":true},{"text":"**$21,250**","inline":true}],[{"text":"Malaysia","inline":true},{"text":"$2,500","inline":true},{"text":"$5,000","inline":true},{"text":"","inline":true},{"text":"**$7,500**","inline":true}]],"records":[{"Declared origin":"China","General":"$2,500","Forced labour 301":"$6,250","China list 301":"$12,500","Duty":"$21,250"},{"Declared origin":"Malaysia","General":"$2,500","Forced labour 301":"$5,000","China list 301":"","Duty":"$7,500"}]},{"type":"prose","text":"That's $13,750 riding on one field, and it's why customs looks hard at transhipment and light assembly. On the facts above, declaring Malaysia would look wrong, however convenient. CBP rulings are public, and you can ask for one on your own goods before you commit. Current rates are at [US tariff changes](/resources/us-tariff-changes)."}]},{"id":"marking-is-a-separate-requirement","title":"Marking is a separate requirement","body":[{"type":"prose","text":"In the US, [every article of foreign origin](https://www.ecfr.gov/current/title-19/section-134.11), or its container where that's allowed, has to be marked in English, conspicuously, legibly and as permanently as the article allows, so the ultimate purchaser knows where it came from. An unmarked shipment may have to be marked, exported or destroyed under supervision. Other countries have their own marking rules and may tie them to food, textile or consumer law, and \"Made in\" claims are also subject to advertising and consumer protection rules."}]},{"id":"how-to-get-your-origin-right","title":"How to get your origin right","body":[{"type":"prose","text":"1. For each SKU, list the components with their origin and value.\n2. Write down the manufacturing steps and where each one happens.\n3. Apply the destination's rule, and record your reasoning.\n4. Get supplier statements for components you can't see being made.\n5. Ask for a ruling if the duty difference justifies it. The EU offers [binding origin information](https://taxation-customs.ec.europa.eu/customs/rules-origin-goods/binding-origin-information-boi_en), and the US issues rulings on origin.\n6. Recheck when a supplier or a factory changes.\n\nThen put the origin on every [invoice](/resources/commercial-invoices) line. If you're not sure of it for a duty quote, use the [import duty calculator](/tools/import-duty-calculator) for both candidate origins to see what's at stake."}]}],"faq":[{"question":"Does a stop in a third country change origin?","answer":"No. Transit, or storage, or repacking doesn't confer origin. A preferential claim may even be lost if the goods aren't shipped under the agreement's direct transport rules."},{"question":"Who decides, the supplier or me?","answer":"The importer of record is responsible for what's declared. A supplier's statement helps, and your responsibility doesn't stop there. See [common invoice mistakes](/resources/commercial-invoice-mistakes)."}],"sources":["[WTO: Agreement on Rules of Origin](https://www.wto.org/english/docs_e/legal_e/22-roo_e.htm), checked 5 November 2026","[European Commission: Non-preferential rules of origin](https://taxation-customs.ec.europa.eu/customs/rules-origin-goods/non-preferential-rules-origin_en), checked 5 November 2026","[European Commission: Guidance on non-preferential rules of origin, March 2022](https://taxation-customs.ec.europa.eu/system/files/2022-03/Guidance%20on%20non-preferential%20rules%20of%20origin.pdf), checked 5 November 2026","[eCFR: 19 CFR 134.1, country of origin definition](https://www.ecfr.gov/current/title-19/section-134.1), checked 5 November 2026","[eCFR: 19 CFR 134.11, country of origin marking required](https://www.ecfr.gov/current/title-19/section-134.11), checked 5 November 2026","[eCFR: 19 CFR 102.21, textile and apparel products](https://www.ecfr.gov/current/title-19/section-102.21), checked 5 November 2026","[CBP: Ruling H302358, country of origin of bicycles, internal advice](https://rulings.cbp.gov/ruling/H302358), checked 5 November 2026","[CBP: Ruling N341639, country of origin of beet concentrate powder](https://rulings.cbp.gov/ruling/n341639), checked 5 November 2026","[CBP: Ruling H301619, country of origin and Section 301 duties, 6 November 2018](https://rulings.cbp.gov/ruling/H301619), checked 5 November 2026","[European Commission: Binding origin information](https://taxation-customs.ec.europa.eu/customs/rules-origin-goods/binding-origin-information-boi_en), checked 5 November 2026","[HMRC: Claiming preferential rates of duty between the UK and EU](https://www.gov.uk/guidance/claiming-preferential-rates-of-duty-between-the-uk-and-eu), checked 5 November 2026","[USTR: Notice of actions on forced labor import prohibitions, 28 July 2026](https://www.federalregister.gov/documents/2026/07/28/2026-15181/notice-of-actions-in-section-301-investigations-of-acts-policies-and-practices-of-various-economies), checked 5 November 2026"],"guide":{"slug":"country-of-origin","kind":"topic","section":"Paperwork"},"markdown":"https://traddal.com/resources/country-of-origin.md"}