The country of origin refers to the country where shipped goods are manufactured or produced.
This designation is crucial for the correct application of tariffs, preferential trade status, trade sanctions, and import quotas. It also serves to inform end users about where a product originates. U.S. Customs and Border Protection (CBP) closely examines country of origin declarations to avoid revenue loss and inadmissible goods entering the country.
It’s important to note that the country of origin is not necessarily the same as the country from which the goods are shipped. If goods are grown or produced entirely in one country, determining origin is relatively simple. However, complications arise when a manufacturer sources significant materials or components from multiple countries to create a finished product.
To properly determine country of origin in complex scenarios, it’s essential to review applicable trade agreements and duty preference programs. As a general rule, when a product contains inputs from multiple countries, its country of origin is where it gained its essential character—in other words, where it was substantially transformed into a new and distinct article of commerce. It may also be identified as the place where the product assumes its Harmonized Tariff Schedule (HTS) classification.
Certain post-production or distribution activities do not alter the country of origin, such as:
- Final assembly and finishing work (e.g., painting)
- Packaging and repackaging
- Repairs, cleaning, and minor alterations
- Diluting with water or other liquids before U.S. entry
Understanding and documenting the correct country of origin is essential for compliance and smooth customs clearance.