Country of Origin
The country of origin refers to the country where goods are manufactured or produced.
The country of origin is essential in effectively applying tariffs, preferential trade status, trade sanctions, and import quotas. Country of origin information is also vital for informing end users about a product’s origin. US Customs and Border Protection (CBP) closely monitors country of origin information to prevent revenue and admissibility issues.
It’s important to note that a good’s country of origin is not the same as the country from which it was shipped. If the goods in question were grown or produced in a single country, determining the country of origin is straightforward. However, it can be less clear when a manufacturer sources a significant amount of materials and core components from other countries to make up a product.
Be sure to consult the relevant trade agreements and duty preference programs that cover your cargo to clearly understand how country of origin applies to your case. A general rule of thumb is that if a product comprises materials or components sourced from multiple countries, the country of origin is the one in which the product acquired its essential character. This means it has been significantly transformed into a different and distinct article of commerce from its base materials. Country of origin can also be determined by where a product takes on its Harmonized Tariff Schedule (HTS) number.
Some manufacturing and distribution processes can occur later without changing the country of origin. These processes include:
- Final assembly work and finishing work, such as painting
- Packaging and repackaging processes
- Repairs, cleaning, and minute alterations
- Diluting with water or other liquids before arrival in the US