Rules for Determining the Country of Origin

Determining the Country of Origin:

1. Goods Manufactured in One Country

According to Article 60, Paragraph 1 of the Union Customs Code, goods that are entirely produced or manufactured in a single country or territory are considered to originate from that country or territory. This rule ensures that the origin of the goods is clearly and precisely defined, simplifying customs procedures and trade processes.

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2. Goods Manufactured and Processed in Multiple Countries

If goods are produced and processed in multiple countries, Article 60, Paragraph 2 of the Union Customs Code applies. According to this rule, the product originates from the country where the last significant and economically justified processing operation took place, which resulted in a new product. The rule also states that not every operation is considered significant; for example, packaging or repackaging is not considered a change of origin.

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3. Proof of the Origin of Goods

The origin certificate is an essential document in international trade, confirming that the goods come from a particular country. These certificates must be submitted during customs clearance and can take the following forms:

– Non-preferential Origin Certificate: Confirms that the goods are not eligible for preferential treatment.

– Preferential Origin Certificate: Allows reduced or zero customs duties if the goods originate from a non-EU country with which the EU has a preferential agreement.

– Invoice Declaration: For smaller shipments, exporters can issue an invoice declaration to prove the origin of the goods.

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4. Mandatory Origin Information (BOI)

The origin information that defines the origin of goods is binding on EU customs authorities for three years. Goods for which customs procedures are completed after the issuance of the BOI must comply with all the descriptions in the BOI, and the circumstances that determine the origin must also comply with the conditions outlined in the decision document.

—Dr. Katona Géza, LL.M. ügyvéd (Rechtsanwalt / attorney at law)

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