The origin of goods: a strategic lever still under-exploited

In an increasingly regulated international trade environment, the origin of goods goes far beyond documentation. It is becoming a key factor in customs compliance , tax optimization and logistics security . For companies involved in import-export , good origin management is a real lever for competitiveness on a global scale.

The two types of origin: non-preferential and preferential

It is essential to distinguish:

Non-preferential origin , used in trade policies such as anti-dumping duties , import quotas or “Made in” marking.
Preferential origin , defined within the framework of free trade agreements (FTAs) , which allow you to benefit from reductions or exemptions from customs duties .

Each product has a non-preferential origin by default, and can claim a preferential origin if it complies with the rules of origin specific to the agreement concerned. Today, there are more than 300 global trade agreements , mostly in the form of FTAs.

Determining origin: substantial transformation and added value

Substantial transformation is the fundamental principle for determining origin. It is based on three key criteria:

Change of tariff heading : the customs code (HS/TARIC) of the final product is different from that of the raw materials.
Percentage of local added value : often between 40% and 50% of the ex-works value (ex-factory price) .
Specific processing : precise stages of production or processing imposed by the agreement.

Good management of the cost structure , particularly the ex-works price , makes it easier to reach the thresholds required to obtain preferential origin.

Justify origin: documents and declarations

Two main proofs of preferential origin:

EUR.1 certificate : issued by customs, mainly used for older agreements .
Declaration on invoice : increasingly widespread method, simplifying administrative management thanks to the dematerialization of exchanges .

The latter is generally associated with a specific customs status of the exporting company.

Customs statuses: Authorized Exporter (AE) and Registered Exporter (EE)

Approved Exporter (EA) : subject to a customs audit , this status allows you to issue invoice declarations without prior validation, under strict conditions.
Registered Exporter (EE) : more flexible, used in the REX system, it is based on self-declaration and complete mastery of the rules of origin .

These statuses strengthen the legal security of trade and facilitate the recognition of origin in FTA zones such as Canada, Japan or Korea.

DLT: upstream traceability of components

Long Term Disclosures (LTD) are essential for:

Resale without transformation , guaranteeing the preferential origin of a purchased product.
Manufacturing , by accumulating suppliers' DLTs to justify the origin of the finished product.

These certificates ensure a compliant supply chain and reliable traceability, essential for passing customs controls .

The origin of goods: a customs optimization tool

Strategic origin management allows:

To save on customs duties
To speed up customs procedures
To minimize the risk of litigation
To strengthen the image of reliability internationally

In a context where origin protocols are constantly evolving , the best-prepared companies transform a technical constraint into a competitive advantage .

Case study: origin of a USB key

Let's take the example of a blank USB key classified under customs code 8523 51 10 00 .

Non-preferential origin:

Local added value must represent at least 45% of the ex-works price .

Preferential origin – EU-South Korea FTA:

The value of non-originating materials must not exceed 50% of the ex-works price.

Preferential origin – EU-Canada FTA (CETA):

A significant change in tariff heading is required: the components must have a different code from that of the final product, and the transformation must be substantial .