Rules of Origin

Criteria that determine where a product was made, used to qualify for preferential tariff rates.

Rules of origin are the criteria used to determine the country of origin of a product for tariff purposes. They matter because different origins trigger different duty rates, trade actions, and preferences. Non-preferential rules determine the base rate; preferential rules determine eligibility for reduced rates under FTAs. Common criteria include substantial transformation (the product was significantly changed in the originating country), tariff shift (the product classification changed), and regional value content (a minimum percentage of the value was added in the originating country).