In international trade, the general rule dictates that goods carry a non-preferential origin. Consequently, the standard duty rates set out in the Common Customs Tariff apply to them. However, specific tariff agreements can guarantee better trade relations. In this case, the goods benefit from a partial or total tax reduction. As a result, these agreements significantly ease customs charges.
Furthermore, the 1973 Kyoto Convention originally defined the general principles for non-preferential origin. The European Community subsequently joined this convention in June 1977. Within this framework, international trade agreements share a universal principle. Specifically, goods wholly obtained in a single country always originate there.
Nevertheless, the issue becomes more complicated when factories use materials from different countries. In such cases, managers must refer to specific rules to evaluate the exact manufacturing process. Therefore, the main distinction lies between “sufficient and insufficient working or processing.” This factor determines whether the goods acquire a new origin status.
In addition, the EC Regulation clearly defines these notions within the Community Customs Code. According to these official guidelines, processing is complete if it changes the final tariff classification. Consequently, the finished product must show a different Combined Nomenclature code compared to the non-originating materials.
On the other hand, preferential origin provides a much more favorable customs treatment. However, this benefit applies exclusively to products from countries with active bilateral agreements. As previously noted, implementing these agreements leads to a lower financial impact. In many cases, it even allows completely duty-free customs transactions.
Naturally, the TARIC system officially lists all the reference duty rates. Because of these financial advantages, preferential rules are much more stringent than non-preferential ones. To facilitate this process, the “EUR1 Certificate” certifies the preferential origin of goods in trade with European Union partners.
The countries with which the EU has signed agreements on preferential origin are numerous. Below is the updated list:
EFTA countries (European Free Trade Association): Iceland, Liechtenstein, Norway, Switzerland.
Mediterranean countries: Algeria, Egypt, Jordan, Israel, Lebanon, Morocco, Palestine and the Gaza Strip, Syria, Tunisia, Turkey.
Western Balkan countries: Albania, Bosnia – Herzegovina, Kosovo, North Macedonia, Montenegro, Serbia.
Countries of the Eastern Partnership: Georgia, Moldova, Ukraine.
ACP States (African, Caribbean and Pacific States)
Africa: Angola, Benin, Botswana, Burkina Faso, Burundi, Camerun, Capo Verde, Ciad, Comore, Rep. del Congo, Costa d’Avorio, Eritrea, Etiopia, Gabon, Ghana, Gambia, Gibuti, Guinea, Guinea-Bissau, Guinea Equatoriale, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambico, Namibia, Niger, Nigeria, Rep. Centrafricana, RD del Congo, Sudafrica, Ruanda, São Tomé e Príncipe, Senegal, Seychelles, Sierra Leone, Somalia, Sudan, Swatini, Tanzania, Togo, Uganda, Zambia, Zimbabwe.
Africa: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Chad, Comoros, Republic of Congo, Ivory Coast, Eritrea, Ethiopia, Gabon, Ghana, Gambia, Djibouti, Guinea, Guinea-Bissau, Equatorial Guinea, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Central African Republic, DR Congo, South Africa, Rwanda, São Tomé and Príncipe, Senegal, Seychelles, Sierra Leone , Somalia, Sudan, Swatini, Tanzania, Togo, Uganda, Zambia, Zimbabwe.
Caribbean (CARIFORUM): Antigua e Barbuda, Bahamas, Barbados, Belize, Cuba, Dominica, Giamaica, Grenada, Guyana, Haiti, Rep. Dominicana, Saint Kitts e Nevis, Saint Vincent e Grenadine, Saint Lucia, Suriname, Trinidad e Tobago.
Pacific: Fiji, Cook Islands, Marshall Islands, Solomon Islands, Kiribati, Nauru, Niue, Palau, Papua New Guinea, Samoa, Micronesia, East Timor, Tonga, Tuvalu, Vanuatu.
OCT countries (Overseas Countries and Territories): Aruba, Curação, French Polynesia, Greenland, New Caledonia, Saint-Barthélemy, Sint Maarten, Saint Pierre and Miquelon, Wallis and Futuna, Bonaire, Sint Eustatius and Saba, Southern and Antarctic Lands French.
Andean Community: Colombia, Ecuador, Peru.
Central American States: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama.
Other Countries and Territories: Andorra, Ceuta e Melilla, Cile, Isole Fær Øer, Mexico.
