Origin Determination & Trade Agreements

Understanding the origin of goods is a fundamental requirement in international trade. Origin determines whether goods qualify for preferential duty rates under trade agreements, or whether specific trade measures—such as anti-dumping duties, quotas, or labeling requirements—apply.

In the EU and UK, businesses must distinguish between preferential origin and non-preferential origin, and provide the appropriate documentation—such as a certificate of origin (COO) for origin purposes or an ATR certificate for circulation status under the EU–Türkiye Customs Union—to benefit from or comply with trade-related requirements.

Preferential Origin

Preferential origin refers to goods that meet the specific rules of origin under a trade agreement, allowing them to benefit from reduced or zero customs duties when imported into a partner country. To qualify, goods must either be wholly obtained in a country or undergo sufficient processing as defined by the relevant agreement.

The EU and UK have numerous preferential trade agreements, including with countries such as Canada, Japan, South Korea, and members of the Pan-Euro-Mediterranean (PEM) Convention. Exporters must be able to prove preferential origin using supporting documents such as origin declarations or movement certificates like EUR.1 forms.

Correctly applying preferential origin enables businesses to lower import duties, improve competitiveness, and access foreign markets more easily.

Non-Preferential Origin

Non-preferential origin is used when no trade agreement applies or when goods do not meet the criteria for preferential treatment. It is still essential, as it determines the country of origin for measures such as:

Anti-dumping or countervailing duties
Import licensing
Quotas and embargoes
Statistical reporting

Non-preferential origin is typically established based on the country where the last substantial transformation of the goods took place. Accurate determination is vital to ensure regulatory compliance and avoid misdeclaration penalties.

ATR Certificate

The ATR certificate is a customs document used specifically for trade between the European Union and Türkiye. It certifies that goods are in free circulation and allows for the preferential customs treatment under the EU–Türkiye Customs Union.

Key features:

Used for industrial products and certain processed agricultural goods
Does not prove origin but confirms free circulation status
Must accompany goods at the time of import to claim tariff preferences

While it facilitates trade between the EU and Türkiye, the ATR certificate is not a proof of origin and is not valid for claiming preferences under other trade agreements.

Certificate of Origin (COO)

A certificate of origin (COO) is an official document that certifies the country in which goods are manufactured or obtained. It is required by customs authorities to verify either preferential or non-preferential origin, depending on the context.

COOs are typically issued by authorized bodies such as chamber of commerce, customs authorities, or other designated institutions and come in two forms:

Non-preferential COO: For general origin verification
Preferential COO: For trade under specific agreements

The certificate of origin is crucial in international trade for compliance with import requirements, avoidance of delays at customs, and assurance to buyers about product origin.

How ALS Can Help

At ALS Customs Services, we guide clients through the complex rules of origin across jurisdictions. Our services include:

Assessing and verifying preferential and non-preferential origin rules
Preparing and reviewing ATR certificates and certificates of origin
Advising on origin documentation to support trade agreement claims
Ensuring compliance with rules of origin under EU and UK trade agreements

With ALS, your origin declarations are accurate, defensible, and aligned with your trade strategy.

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