What are Rules of Origin?

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Rules of Origin

What are Rules of Origin? 

Rules of origin are a set of legal standards or rules used to determine the national source of a product or service. They are used to enforce tariffs on traded goods based on the country that they come from. Different countries, organizations, and trade agreements/associations generate a different set of rules for these imports. 

The USMCA, for example, is a trade agreement between the United States, Mexico, and Canada, and it has its own “rules of origin” that imports have to meet, to be considered a product of a certain country. According to the USMCA, the goods must be entirely produced and assembled in one of the three countries for them to be considered from a USMCA origin. 

** Recap: Country of Origin

A country of origin is where goods are produced, grown, or manufactured. Shipping a product through another country never changes its origin. For example, if you purchase Cuban cigars from the Netherlands will not change its country of origin to “Made in the Netherlands.” 

   

   

   

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