Origin of goods
More information about the origin of goods can be found on our portal: www.povod .sk
What is the origin of the goods?
It should be pointed out at the outset that the origin of goods is one of the three main pillars on which the customs clearance system is based, so competent authorities should pay due attention to this issue and ensure adequate information service in this area. Put simply, the origin is the "economic" nationality of the traded goods. It is necessary to determine the nationality and tariff classification of the goods in order to determine the customs duty and any charges imposed on the goods or any restrictions or obligations relating to the goods in question. There are two types of origin, non-preferential and preferential. The customs treatment of goods on importation is determined by the origin of the goods and, in application, it is also necessary to prove the origin of the goods by presenting the corresponding documents in accordance with international treaties concluded by the European Union.
It merely confers on the "economic" nationality of the goods and does not confer any advantage on the goods. The non-preferential origin of the goods is obtained either because the products are "wholly obtained" in one country or, if two or more countries are involved in the production of the product, originated in the country where the last substantial, economically justified working or processing took place. Non-preferential origin is used, for example, to determine whether goods are subject to anti-dumping measures or quantitative restrictions and for statistical purposes. The non-preferential origin of the goods may also be used to determine origin in relation to the "trademark" of the product (ie "MADE IN ................ = MADE IN ....... ......... ") on the label.
They talk about goods from certain countries if certain criteria are met. The rules of preferential origin generally require that the goods undergo more working or processing than that required to obtain non-preferential origin. However, wholly obtained goods may also benefit from preferential origin. The preferential origin confers certain advantages on goods traded between countries having a contractual arrangement, usually allowing for tariff reductions or relief from customs duties. This, of course, has a positive effect on the final price of goods, which will reflect all costs, ie. also the level of import payment (CLO, VAT, SPD, eventually license fees as well as fees for issuing certificates etc.). It is in the interest of each manufacturer, supplier, that the goods should not be burdened with customs duties, resp. obtained the most advantageous duty rate. It is therefore very important to have the necessary precise information in order to verify the possibilities of importing specific goods from a particular country into the European Union. The same applies to exports, but with the benefit of the importer, making Union goods more competitive on third country markets.
Can all products benefit from preferential origin?
In theory, all products can benefit from preferential origin. In fact, a country will not give preference to goods which it considers sensitive to its industry, so these conditions must be agreed between the parties contractually. As regards the agreements in this guide, some goods are excluded in terms of the preferences applied. Therefore, be sure to always verify that your goods are among those listed in the agreement between your country of your business partner.
How do I know if my goods are subject to preferential treatment?
In order to obtain the preferential origin of the goods, they must satisfy the conditions laid down in the Protocol defining the concept of "originating products". This means that the goods must either be wholly obtained or undergo a specified degree of working or processing. Each protocol of origin contains an annex listing the working or processing which each product must undergo in order to obtain its preference. That list is based on the tariff classification of products, on the basis of the Harmonized System (HS). The tariff classification must be known before it can be determined by which product the product must undergo. Further information on how to read the Annex for processing can be found in the provisions of each origin protocol.
What criteria for working or processing must be met?
In addition to the requirements of working or processing, there are also strict definitions that say what is meant by "nationality" in relation to the origin of the goods. This is particularly important in determining the origin of fish and fish products. The explanation is usually contained in the articles of a specific Protocol dealing with "nationality" in relation to origin in more detail.
What is cumulation?
The Annex to the Origin Protocol (usually "Annex II"), which sets out the procedures necessary to obtain origin, describes what needs to be done to benefit from a preferential origin. However, in modern production it is quite common for two or more different sources in different countries to be involved in the production of goods. Where two or more countries apply the same rules of origin and have free trade agreements between them, they may cumulate origin. So it is called. pooling of goods on the basis of their origin, applying the entry price ratio in the EXW parity of the finished product after working or processing.
As is clear from the context of the agreements in this guide, cumulation means that products originating in one partner country can be used with products originating in another partner country without prejudice to the preferential status of the finished product.
In the case of cumulation of working or processing carried out in each partner country on the originating products, it may not be "sufficiently worked or processed" within the meaning of the relevant Article of the Protocol in order to transfer the origin of the partner country to the final product; .
What is bilateral cumulation?
It is operated between two partners. This means that producers from each partner country may use materials and components originating in another country than they would originate in their own country and operations carried out in one partner country may be merged with activities carried out in another partner country to obtain origin for goods traded between them.
What is diagonal cumulation?
Diagonal cumulation works between more than two countries. Where countries A, B and C have agreements with each other and each applies the same rules of origin regarding the working or processing of non-originating materials, country A may apply diagonal cumulation in its trade with the other two partners if their agreements provide for such cumulation.
What is full cumulation?
Under the pan-European rules on cumulation of origin, full cumulation is operated between partners within the European Economic Area (EEA). It is also applicable under certain protocols with Tunisia, Morocco and Algeria.
The EEA consists of the EU, Iceland, Liechtenstein and Norway. For the purposes of origin, the territory of these States shall be considered as one EEA territory. Full cumulation means that all operations carried out in the EEA are taken into account in the assessment of final origin.
Goods originating in one of the EEA partner countries are not required to undergo further working or processing in another EEA partner country before being exported, but all the working or processing required for the granting of origin is carried out on the product.
The protocols between the EU and Tunisia, Morocco and Algeria also allow cumulation in the framework of working or processing. This is also required in the EEA, where any working or processing necessary to obtain origin must be carried out on the product. not in the customs territory of one country, but in an area made up of the customs territories of countries within a group of countries, namely in the EU, Tunisia, Morocco and Algeria.
Professional seminars on the origin of goods with practical examples
In order to fully understand the cumulation, we recommend that you attend a professional seminar on "Origin of Goods" or "Preferential Treatment" where examples of practice and detailed rules of origin, concepts and preferential treatment of goods as well as a system of bilateral, diagonal and full cumulation work.
Where can I find the Protocol to the country with which I do business?
The protocols of origin to each agreement between the EU and its partners were published in the L series of the Official Journal of the European Communities. The list of these Official Journals together with the dates of their publication is part of the study materials we provide to the participants of the professional seminars. In addition, you will find all the necessary data on the protocols on the European Commission's website on the origin of goods or also on our website on the origin of goods www.povod.sk.
However, if for some reason you do not have access to the agreement that interests you, you can contact us, which is ready and able to meet your requirements. We also deal with customs audits on the origin of goods, preferential treatment, use of preferences in trade with third countries. Just contact us and arrange an informative meeting with you, eventually provide the necessary data, or provide you with a free basic consultation for free. Given that the issue of origin of the goods is both complex and very complex, it also represents a very important pillar of the entire customs procedure, from which the possibilities of using preferential treatment in particular are derived.
So why don't you take advantage of the European Union's international agreements with third countries and do not gain a competitive advantage over products when imported into the customs territory or when products are exported to third countries and placed on that market under better conditions (competitive or better, lower costs etc.).
Which agreement applies to my goods?
The agreement that applies to your goods is the one that exists between your country and the country of your business partner (eg Egypt, Morocco, etc.) or a group of countries (eg EU, EEA), respectively. the following examples illustrate this point.
It should be recalled at this point that for historical reasons the EU has agreements with individual EFTA Member States (ie Iceland, Norway and Switzerland (which form a customs union with Liechtenstein as an EEA Member State)). However, EFTA Member States have signed agreements with other partner countries as one group.
Alphabetical list of third countries and territories by preferential affiliation in relation to the European Union
All necessary information in a clear form can be found on the website or their sub pages dedicated to the origin of the goods, also given its size.
These can be found on our website: https://www.cdservices.sk/linky/europska-unia/ resp. in the menu on the top bar of our website part LINK, which is further divided into information from Slovakia, European Union, International organizations.
Come to the seminars on Origin of Goods, Rules of Origin and Preferential Origin in International Trade and learn more.
PUBLIC ACCESS FORM - we organize professional seminars in Trnava and Bratislava.
General terms of our professional training can be found on our website at https://www.cdservices.sk/seminare/aktualne-terminy/.
INTERNAL FORM - for individuals and groups in your company. Contact us. We will send you a quote.