EU Rules of Origin Cheat Sheet

What is the economic nationality of the product you are importing or exporting?

Simply by understanding the true origins of your product, you can benefit from lower customs duties.

The EU Rules of Origin Cheat Sheet is designed to help you:
- navigate EUs trade agreements
- prove your products origin to customs officials.

Why is it important?

Imagine a company based in the Netherlands imports apples from various global suppliers to meet its diverse market demands.

One particular batch of apples presents a unique challenge in determining its country of origin, raising questions
about whether these apples are
from South Africa or
another country.

Sourcing and Shipping:

The company receives a shipment of apples labeled as

“Product of South Africa.”

However, upon closer inspection, it’s revealed that these apples were actually harvested in a country neighboring South Africa but were then transported
to South Africa for packaging
and labeling.

Regulations and Standards:

According to EU rules of origin, a product’s country of origin is where
it has undergone its last, substantial,
economically justified processing or working in an establishment equipped
for that purpose, resulting in a new product or representing an important stage of manufacture.

The question arises whether the packing and labeling process in South Africa constitutes a substantial transformation according to these criteria.


Documentation:

The shipment comes with all
necessary certificates of origin
and phytosanitary documents stating South Africa as the country of origin.

However, the paperwork also
includes a traceability report from
the initial harvest, indicating the actual place of harvest in the neighboring country.

Trade Agreements:

The EU has different trade agreements and tariffs for agricultural products imported from various countries.

If these apples are considered products of South Africa, they might benefit from a preferential trade agreement between
the EU and South Africa, affecting the import duties applied.


Market Implications:

The company markets its products
with a strong emphasis on the origin, knowing consumers have preferences
for certain countries due to perceived quality differences.

Mislabeling or incorrect determination of the country of origin could affect the brand’s reputation and consumer trust.