Preferential rules of origin: new published guidelines!

Publication of updated guidance on preferential rules of origin

On 3 March the Directorate-General for Taxation and Customs Union (DG Taxud) published an update on theGuidelineson preferential rules of originthe revision of the Pan-Euro-Mediterranean Convention and the entry into force of the Interim Trade Agreement between the European Union and Chile.

In this update of the guidelines published by DG-Taxud, it is mainly concerned with the cooperation of the various States concerned by the agreements signed with the Union, enabling customs administrations to carry out under the best conditions the checks of declared preferential origin.

DG Taxud also recalls the various criteria that can be used to declare the preferential origin of a good:

1. Products wholly obtained: the term « Fully obtained« applies mainly to natural products obtained in the exporting territory and to products wholly manufactured from them.
2. Products obtained by a change in tariff classificationThis product-specific rule requires that the customs classification of the final product differs from that of non-originating materials used in production. Depending on the rules, this difference may be expressed according to the first two digits of the HS, Harmonised System (corresponding to the Chapter), the first four digits (customs position) or the first six digits (customs subheading).
3. Products obtained on the basis of value ruleThis rule generally sets a maximum value for non-originating materials expressed as a percentage of the ex-works price of the manufactured product.
4. Products obtained by weight ruleThis rule is always used in combination with other rules, requiring, for example, a change in tariff heading and a maximum threshold for non-originating materials expressed as a percentage of the weight of the manufactured product.
5. Products obtained on the basis of the manufacturing process ruleThis is a rule requiring specific treatment of non-originating materials in order to confer preferential origin within the meaning of the agreement concerned. This is a common rule, particularly in the textile and clothing sector, as well as in the chemical sector.