Origin and Proof of Union status

Various procedures on touching on both preferential origin and non-preferential origin.

Understanding Origin in International Trade

Introduction


1 Definition and Importance of Origin


In international trade, the term origin refers to the economic nationality of a product — that is, the country where it was produced or underwent its last substantial transformation. Determining a product’s origin is fundamental to the application of customs duties, trade policy measures, import and export documentation, and statistical reporting.

The rules governing origin ensure that the benefits or restrictions applied to goods (such as duty preferences, quotas, or trade defence measures) are correctly attributed to the appropriate country.
Origin is therefore a cornerstone of fair and transparent trade, preventing circumvention of customs rules and ensuring the proper functioning of trade agreements.


2 Types of Origin


There are two principal types of origin used in international trade:

  1. Non-Preferential Origin, and

  2. Preferential Origin.

Although both determine a product’s economic nationality, they serve different purposes and are based on distinct legal frameworks.


2.1 Non-Preferential Origin


Non-preferential origin is used for the application of general trade policy measures that are not linked to preferential tariff treatment.
It determines a product’s “normal” origin under the World Trade Organization (WTO) framework and the Union Customs Code (UCC).

Non-preferential origin is relevant for:

  • The application of Most Favoured Nation (MFN) customs duties;

  • Trade defence measures such as anti-dumping or countervailing duties;

  • Quantitative restrictions, embargoes, and import/export licensing;

  • Marking of origin (“Made in …”) and statistical purposes.

The rules for determining non-preferential origin generally depend on:

  • Whether the goods are wholly obtained in one country (e.g. minerals extracted, agricultural products harvested); or

  • Where more than one country is involved, the country where the product underwent its last substantial transformation, defined by a change in tariff classification, value added, or specific processing.


2.2 Preferential Origin


Preferential origin, on the other hand, applies specifically in the context of preferential trade agreements (PTAs), free trade agreements (FTAs), or unilateral preference schemes such as the EU’s Generalised Scheme of Preferences (GSP).

Its primary purpose is to determine whether a product qualifies for reduced or zero customs duties when traded between countries that have concluded such agreements.

To benefit from preferential treatment, goods must meet the rules of origin set out in the specific agreement. These rules ensure that only products genuinely produced or substantially transformed within the territories of the contracting parties receive preferential tariff benefits.

Typical preferential origin requirements include:

  • Being wholly obtained in one of the partner countries (e.g., natural products); or

  • Being sufficiently worked or processed according to the Product-Specific Rules (PSR) detailed in the agreement (e.g., change in tariff heading, maximum non-originating material content, or specific manufacturing process).


3. Key Distinction Between Preferential and Non-Preferential Origin


Aspect Non-Preferential Origin Preferential Origin
Purpose Determines origin for general trade policy measures (MFN duty, anti-dumping, quotas, etc.) Determines eligibility for reduced or zero customs duties under trade agreements
Legal Basis Union Customs Code (Articles 59–61) and WTO rules Preferential trade agreements (e.g. EU–UK TCA, EU–Japan EPA, GSP)
Rules Wholly obtained or last substantial transformation Wholly obtained or sufficient working/processing as defined by Product-Specific Rules
Proof of Origin Certificate of Origin (e.g. Chamber of Commerce certificate) Statement on Origin, EUR.1, or Form A (depending on the agreement)
Effect on Duty Rate Normal (MFN) duty applies Preferential (reduced or 0%) duty applies
Scope of Application Global, applies to all trade Limited to specific trade partners under agreements





4. The Role of Origin in Compliance


Understanding the distinction between preferential and non-preferential origin is essential for customs compliance and duty optimisation.
Exporters and importers must apply the correct origin determination method depending on the trade context:

  • If goods are exported under an FTA, the preferential origin rules are applied;

  • If goods are traded outside such an agreement, non-preferential origin applies.

Incorrect origin declaration can result in:

  • Denial of preferential duty benefits;

  • Recovery of duties with interest;

  • Administrative penalties or reputational risk.

Establishing clear procedures and robust documentation controls is therefore vital to ensure the accuracy, traceability, and defensibility of all origin claims.

Preferential origin

Preferential origin refers to the economic nationality of a product as determined under the terms of a preferential trade agreement (PTA) between two or more countries. It establishes whether a product qualifies for preferential (reduced or zero) customs duties upon importation into a partner country.


Unlike non-preferential origin, which determines general origin for trade statistics or labelling, preferential origin is specifically used to access preferential tariff treatment under free trade agreements (FTAs), association agreements, or economic partnership agreements.

Preferential origin

General principles

Introduction and Context


1 Meaning of Preferential Origin

Preferential origin refers to the economic nationality of a product as determined under the terms of a preferential trade agreement between two or more countries. It establishes whether a product qualifies for preferential (reduced or zero) customs duties upon importation into a partner country.

Unlike non-preferential origin, which determines general origin for trade statistics or labelling, preferential origin is specifically used to access preferential tariff treatment under free trade agreements (FTAs), association agreements, or economic partnership agreements.

To obtain preferential origin, a product must either:

The rules ensure that only goods genuinely produced within the parties' economies benefit from preferential tariff treatment.


2 Direct Transport Requirement

Under most FTAs, goods claiming preferential origin must be transported directly between the territories of the contracting parties (e.g. from the EU to the UK, or vice versa) to qualify for preferential treatment. This rule ensures that the goods are not altered, substituted, or traded through third countries in a way that could compromise their originating status. Temporary storage, transshipment, or splitting of consignments in a third country is generally permitted only if the goods remain under customs supervision and do not undergo any operation other than unloading, reloading, or other actions necessary to preserve their condition.

To substantiate compliance, traders must be able to provide documentary evidence demonstrating the continuity and integrity of transport. Typical proofs include:

  • Transport documents such as bills of lading, airway bills, or CMR consignment notes showing the direct routing between the two FTA territories;

  • Through bills of lading covering the entire route;

  • Customs control certificates or warehouse records proving the goods remained under customs supervision when transiting through a third country;

  • In some cases, a commercial invoice or shipping company statement confirming that no alteration occurred during transit.

Maintaining these documents is essential to uphold preferential origin claims during customs verification.


3 Purpose of Preferential Origin Procedures

The purpose of establishing and verifying preferential origin is to:

  • Ensure correct application of preferential duty rates;

  • Prevent abuse of trade preferences through simple transshipment or minor processing;

  • Guarantee fair competition between partner countries;

  • Provide customs authorities with a verifiable framework for origin determination;

  • Enable exporters and importers to confidently claim tariff preferences.


For the European Union, preferential origin is governed by:

  • The individual trade agreements concluded by the EU (e.g. the EU–UK TCA, a full list of a list can be accessed here);

  • Articles 60–68 of the Union Customs Code (Regulation (EU) No 952/2013);

  • Relevant implementing and delegated acts.



Preferential origin

General Procedure: Determination of Preferential Origin

Step 1 - Identify Applicable Agreement

Determine whether a preferential trade agreement exists between the exporting and importing countries.
If such an agreement exists, it provides the basis for preferential tariff treatment.


Step 2 - Determine Tariff Classification

Identify the product's tariff classification at the HS 6- or 8-digit level. The tariff heading determines which Product-Specific Rule (PSR) applies.


Step 3 - Consult the Product-Specific Rule (PSR)

Locate the relevant PSR in the annex to the applicable agreement. Typical PSR formats include:


Step 4 - Identify and Value Materials


Step 5 - Apply Cumulation (if permitted)

Cumulation allows originating materials or processing from another partner country to count as originating.


Step 6 - Verify Beyond Minimal Operations

Check that the processing carried out exceeds the - minimal operations - defined in the agreement (e.g., simple packaging, mixing, or labelling do not confer origin).


Step 7 - Prepare Proof of Origin

The type of origin document depends on the agreement:


Step 8 - Record-Keeping and Evidence

Maintain all origin-related documents for at least 3-5 years:


Step 9 - Verification by Customs

Customs authorities may request post-clearance verification. Failure to substantiate origin claims may result in retroactive duty recovery.

Preferential origin

Case law


Topic

Case (link)

Date

Key holding (one line)

Practical takeaway
Preferential origin - improper claim / recovery procedures

C-589/17 ? Prenatal S.A. (EUR-Lex) (EUR-Lex)

 29 Jul 2019 Court clarified duties recovery where preferential origin has been wrongly claimed and limits on administrative remediation.  Ensure documentary proof for preferential claims is kept and be prepared for administrative recovery; origin certificates must be scrutinised in post-clearance checks. 
Preferential origin - products from territories under restrictive measures

C-67/23 (interpretation of Reg. 194/2008 re Burma/Myanmar) (CURIA) (Curia)

 5 Sep 2024 Interprets when certificates of origin / preferential treatment can be refused for goods connected to sanctioned or restricted territories; processing in third countries does not automatically negate special measures.  Where sanctions/restrictive regimes apply, do not assume certificates of origin are decisive - check materially whether the goods fall within the scope of restrictive rules before granting preferential treatment. 
Territorial scope of preferential agreements / disputed territories

C-104/16 P ? Council v Front Polisario (EUR-Lex) (EUR-Lex)

 21 Dec 2016 EU agreements cannot lawfully be applied to a disputed territory (Western Sahara) without consent of its people - preferential treatment cannot be extended unlawfully.  When relying on preferential trade deals, verify territorial scope - products from disputed territories may be excluded regardless of certificates issued by the controlling state. 
Preferential origin / disputed territory - national application

C-266/16 ? Western Sahara Campaign UK (CURIA) (Curia)

 27 Feb 2018 Reaffirmed that preferential treatment under EU agreements cannot be extended to Western Sahara without legal/consensual basis; national authorities must respect Court?s interpretation.  Customs declarations for goods from disputed territories require extra diligence; preferential claims can be challenged and annulled. 




Preferential origin - Specific EU - UK TCA Procedures

Here various procedures are listed describing the rules of origin as specified in the specific Preferential trade agreements between the exporting and importing countries, providing the basis for preferential tariff treatment.

Preferential origin - Specific EU - UK TCA Procedures

EU-UK TCA for Tariff Heading 2710 - Terminal operations

1. Purpose and Scope

This procedure outlines how to determine and maintain preferential origin status for petroleum products classified under tariff heading 2710 that are stored, handled, or blended in the EU or the UK under the EU-UK Trade and Cooperation Agreement (TCA).

Tariff Heading 2710 covers:

Petroleum oils and oils obtained from bituminous minerals (other than crude); preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals.


It applies to all facilities and operators engaged in:

The aim is to ensure that stored goods maintain or correctly lose their preferential origin status in compliance with the TCA.


  • EU-UK Trade and Cooperation Agreement (TCA): Title I, Rules of Origin (Part Two, Heading One, Chapter 2).

  • Annex ORIG-2: Product-Specific Rules (PSR) for HS 2710.

  • Article ORIG.14:Accounting segregation.

  • Article ORIG.12:Tolerances for non-originating materials.

  • Article ORIG.7:Insufficient working or processing operations.


3. Product-Specific Rule (PSR) - HS 2710

"Manufacture from materials of any heading, except that of the product, provided that the value of all non-originating materials used does not exceed 40% of the ex-works price of the product."

  • Non-originating materials under the same heading (2710) may not be used.

  • Materials classified under other headings (e.g. 2709 crude petroleum) may be used, provided the value of all non-originating inputs does not exceed 40% of the ex-works price.

  • The product must undergo a Change in Tariff Heading (CTH) as part of the transformation.

For storage and distribution activities, this PSR is relevant primarily for verifying that minor additions of non-originating material do not exceed permissible thresholds and that the overall product maintains its preferential origin.


4. Cumulation

  • The EU-UK TCA allows bilateral cumulation only.

    • Materials originating in the UK are treated as originating in the EU and vice versa.

    • Inputs from third countries cannot be cumulated.


5. Key Operational Principles


5.1 Storage Does Not Alter Origin

  • Merely storing, transferring, or handling originating goods does not affect their preferential origin status, provided:

    • The goods remain identifiable, and

    • No operations are performed that would constitute insufficient working or processing under Article ORIG.7.


5.2 Insufficient Operations

Origin is not maintained if operations performed are limited to:

  • Simple blending of oils;

  • Simple mixing, dilution, or packaging;

  • Any process that does not result in a change in tariff heading or essential character.

However, for companies managing mixed stocks of originating and non-originating petroleum products, accounting segregation (Article ORIG.14) may be applied to maintain compliance without physically separating each batch.


5.3 Sufficient Working or Processing

Processing that qualifies:

  • Refining crude petroleum (heading 2709) into petroleum products (heading 2710);

  • Chemical transformation changing the essential character of the product.

Processing that does not qualify (as per Article ORIG.7):

  • Simple mixing of products;

  • Simple dilution;

  • Simple packaging or relabelling;

  • Any process that does not alter the tariff classification or essential character.


5.3.1 Origin Verification Process Manufacturing

  1. Classify the product under CN 2710.

  2. List all inputs with tariff headings and origin status.

  3. Calculate the ex-works price of the finished product.

  4. Determine total value of non-originating inputs.

    • If ≤ 40% of ex-works price = condition satisfied.

  5. Ensure that no non-originating material of heading 2710 is used.

  6. Confirm that the transformation changes the tariff heading (CTH achieved).

If all criteria are met, the product acquires EU or UK originating status.


6. Accounting Segregation (Article ORIG.14 TCA)

6.1 Principle

Accounting segregation allows an operator to manage originating and non-originating materials or products in a single inventory where physical segregation is impractical.

This method may be used only if the records and control systems ensure that:

  • The quantities of originating and non-originating goods are accurately accounted for;

  • No more originating goods are deemed to be exported than those that would result from physical segregation.


6.2 Implementation Steps

  1. Approval

    • Accounting segregation may be applied only if the operator has an approved origin accounting system validated by internal customs or compliance management.

  2. Inventory System Requirements

    • The system must record:

      • Opening stock balance by origin category (EU, UK, non-originating);

      • Receipts (by origin and quantity);

      • Dispatches (with declared origin and supporting documentation).

    • The system must allow traceability from incoming to outgoing quantities.

  3. Calculation Basis

    • The ratio of originating to non-originating goods in storage determines the share of outgoing goods that may be considered originating.

    • Example:

      • Stock: 90% originating + 10% non-originating.

      • A dispatch of 1,000 tonnes may be declared as originating up to 900 tonnes.

  4. Documentation

    • Each origin batch movement must be supported by supplier declarations, statements on origin, or other valid proof.

    • Periodic stock reconciliation must confirm that cumulative declarations do not exceed available originating stock.

  5. Retention

    • Records must be kept for a minimum of three years and made available upon customs request.


7. Incorporation of Non-Originating Material - 10% Value Tolerance


Article ORIG.12 of the EU-UK TCA permits a tolerance of up to 10% of the ex-works price for non-originating materials used, even where the PSR would otherwise prohibit such use.
This tolerance cannot be used to exceed the maximum non-originating material limit (40%) specified in the PSR.


7.2 Application to HS 2710 (Storage Context)

In storage operations where non-originating material (e.g. additive or stabiliser) is added to otherwise originating petroleum products:

  • The value of the non-originating addition must not exceed 10% of the ex-works price of the final blended product.

  • The blended product may still be regarded as originating, provided:

    • The total non-originating material (including the addition) does not exceed 40% of the ex-works price; and

    • The blending does not fall within insufficient operations (i.e., must have a legitimate commercial purpose and not merely be a simple mix).


7.3 Calculation Example

  • Ex-works price of blended product: USD 1,000 per tonne

  • Non-originating additive: USD 80 per tonne (8%)

  • Total non-originating materials: 8% (<10%)
    = Product retains preferential origin under the 10% tolerance rule.

If the addition exceeds 10%, or if total non-originating input surpasses 40%, the final product loses preferential origin.


8. Operational Procedure

StepActionResponsible
1. Receipt of GoodsRecord all incoming products by Commodity code and origin (EU, UK, or non-originating) based on supplier documentation.Customer Services
2. StorageMaintain stock records using accounting segregation. No co-mingling of origin categories without system control.Warehouse / IT Systems
3. Addition of MaterialIf non-originating additives or materials are added, record the value and percentage relative to ex-works price. Verify that 10% tolerance is not exceeded.Customer / Customer Services
4. Stock ManagementUse accounting segregation ratios to allocate origin status to outgoing quantities.Warehouse / IT Systems
5. Proof of Origin for DispatchesIssue a Statement on Origin (Annex ORIG-4 wording) only for quantities qualifying as originating under segregation and tolerance limits.Customs representative
6. Record-KeepingKeep all supporting evidence (origin documents, blending records, valuation sheets) for 3 years minimum.Customs Compliance
7. Audit and VerificationPerform internal checks quarterly to confirm compliance with origin and tolerance provisions.Compliance Manager




9. Verification and Customs Control

  • Customs authorities may verify origin claims by reviewing:

    • Stock and accounting segregation records;

    • Value calculations for non-originating additions;

    • Supplier origin documentation and statements;

    • Outgoing origin declarations.

  • Non-compliance may result in loss of preferential treatment and retroactive duty recovery.


10. Summary Table - Storage Context (HS 2710)

ElementRequirement
Tariff Heading2710
PSR LimitMax 40% non-originating materials (ex-works price)
Tolerance RuleAdditional 10% of ex-works price for incidental non-originating additions
CumulationBilateral (EU-UK)
Processing RestrictionNo simple mixing, packaging, or dilution (Article ORIG.7)
Stock Control MethodAccounting segregation (Article ORIG.14)
Proof of OriginStatement on Origin (Annex ORIG-4)
Retention Period3 years minimum
Key ControlsStock reconciliation, value calculation, segregation ratio monitoring




11. Conclusion

In storage operations under the EU-UK TCA, the preferential origin of petroleum products (heading 2710) can be maintained provided that:

  • Goods are handled under accounting segregation systems ensuring traceable origin management;

  • Any addition of non-originating materials does not exceed 10% of the ex-works value, and total non-originating input remains within the 40% PSR limit;

  • No operations constitute insufficient working or processing under Article ORIG.7.

By applying these controls, operators can confidently issue Statements on Origin while maintaining full compliance with the TCA's preferential origin framework.


Preferential origin - Specific EU - UK TCA Procedures

Statement on origin

To be printed on an invoice or commercial document containing information on the goods concerned


impala_full_logo_rgb_purple







(Period: from ___________ to ___________ (1))

The exporter of the products covered by this document (Exporter Reference No ...(2)) declares that, except where otherwise clearly indicated, these products are of Union preferential origin.



.......................................................
(4) (Place and date)


Impala Terminal Rotterdam B.V.
(Name of the exporter)



(1) If the statement on origin is completed for multiple shipments of identical originating products within the meaning of point (b) of Article 56(4) of this Agreement, indicate the period for which the statement on origin is to apply. That period shall not exceed 12 months. All importations of the product must occur within the period indicated. If a period is not applicable, the field may be left blank.
(2) Indicate the reference number by which the exporter is identified. For the Union exporter, this will be the number assigned in accordance with the laws and regulations of the Union. For the United Kingdom exporter, this will be the number assigned in accordance with the laws and regulations applicable within the United Kingdom. Where the exporter has not been assigned a number, this field may be left blank.
(3) Indicate the origin of the product: the United Kingdom or the Union.
(4) Place and date may be omitted if the information is contained on the document itself.
Preferential origin - Specific EU - UK TCA Procedures

SOP - Decision flow Preferential origin EU - UK TCA tariff Heading 2710

Preferential origin - Specific EU - UK TCA Procedures

Decision flow Preferential origin EU - UK TCA tariff Heading 2710

Preferential origin - Specific EU - UK TCA Procedures

Template preferential origin (long term) supplier declaration

[TO BE PRINTED ON COMPANY LETTERHEAD]


SUPPLIER'S DECLARATION

 

I, the undersigned, declare that the goods listed on this document …………………………….……………….(1), originate in ……………………………….(2) and satisfy the rules of origin governing preferential trade with ……………………………………………(3).

 

I declare that (4):



            editor_310_5_d5e519f3-a209-4ca6-a648-ec57e868cd0c_rte_image_272.png Cumulation applied with …………………………………(name country/countries)

            editor_310_5_779ef7f7-bc0f-41bb-a476-33eafaf08dce_rte_image_276.png No cumulation applied

 

I undertake to make available to the customs authorities any further supporting documents they require.

……………………………………………………………………….…. (5)

………………………………………………………………………….. (6)

……………………………………………………………………..…… (7)

_________________________

Footnotes (can be removed after completion)

(1) If only some of the goods listed on the document are concerned, they shall be clearly indicated or marked and this marking entered in the declaration as follows:

“………………..…listed on this document and marked …………………..….originate in ………………….…

(2) The European Union, country, group of countries or territory, from which the goods originate

(3) Country, group of countries or territory concerned

(4) To be completed, where necessary, only for goods having preferential origin status in the context of preferential trade relations with one of the countries with which pan-Euro-Mediterranean cumulation of origin is applicable.

(5) Place and date of issue

(6) Name and position of the undersigned, name and address of company

(7) Signature


[TO BE PRINTED ON COMPANY LETTERHEAD]


LONG-TERM SUPPLIER'S DECLARATION

 

I, the undersigned, declare that the goods described below:

…………………………………………………………………….(1)

…………………………………………………………………….(2)

Which are regularly supplied to ………………………………….(3), originate in ……………………………….(4) and satisfy the rules of origin governing preferential trade with ……………………………………………(5).

 

I declare that (6):



            editor_310_5_03dcdb43-1ce4-4077-89ef-9f4048632165_rte_image_282.png Cumulation applied with …………………………………(name country/countries)

            editor_310_5_e5c6b2a4-db08-4e7b-b34d-a5de19884987_rte_image_290.png No cumulation applied

 

This declaration is valid for all shipments of these products dispatched from ......................................... to

...............................(7)

 

I undertake to inform ............................................(3) immediately if this declaration is no longer valid.

I undertake to make available to the customs authorities any further supporting documents they require.

……………………………………………………………………….…. (8)

………………………………………………………………………….. (9)

……………………………………………………………………..…… (10)

_________________________

Footnotes (can be removed after completion)

_________________________

Footnotes (can be removed after completion)

(1) Description

(2) Commercial designation as used on the invoices e.g. Model No

(3) Name of the company to which goods are supplied

(4) The European Union, country, group of countries or territory, from which the goods originate

(5) Country, group of countries or territory concerned

(6) To be completed, where necessary, only for goods having preferential origin status in the context of preferential trade relations with one of the countries with which pan-Euro-Mediterranean cumulation of origin is applicable.

(7) Give the start and end dates. The period shall not exceed 24 months.

(8) Place and date of issue

(9) Name and position of the undersigned, name and address of company

(10) Signature

Non-Preferential origin

Non-preferential origin is used for the application of general trade policy measures that are not linked to preferential tariff treatment.
It determines a product's "normal" origin under the World Trade Organization (WTO) framework and the Union Customs Code (UCC).
Non-Preferential origin

General principles

Introduction and Context


1. Meaning of non-preferential origin

Non-preferential origin determines the economic nationality of a product for general customs purposes within the EU. It establishes which country a product is considered to originate from when imported or exported, independently of any preferential trade agreements.

Unlike preferential origin, which is used to access reduced or zero tariff rates under free trade or economic partnership agreements, non-preferential origin is used primarily to:

To establish non-preferential origin, a product must either:

These rules ensure that origin determinations reflect the true country of production, prevent circumvention of EU trade rules, and provide legal certainty for customs authorities and economic operators.


2. Purpose of Non-Preferential Origin Procedures

The purpose of establishing and verifying non-preferential origin is to:


For the European Union, non-preferential origin is governed by:

  • Articles 148–152 of the Union Customs Code (Regulation (EU) No 952/2013);

  • Delegated and Implementing Acts supplementing the UCC, including Annex 22‑01 and related product-specific rules for non-preferential origin;

  • Customs procedures and national regulations implementing the UCC in Member States;

  • CJEU case law interpreting substantial transformation, minimal operations, and primary rules (e.g., C‑86/24 CS STEEL, C-589/17 Prenatal S.A., C-297/23 Harley-Davidson Europe).


Non-Preferential origin

General Procedure: Determination of Non-Preferential Origin

Step 1 - Classify the Goods

Step 2 - Check if Goods Are Wholly Obtained

Step 3 - Identify All Countries of Production/Processing

Step 4 - Assess Substantial Transformation

Step 5 - Apply Codified List Rules (if applicable)

Step 6 - Apply Residual Rule (if no codified rule applies)

Step 7 - Document All Steps

Step 8 - Declare Origin in Customs Procedure

Step 9 - Maintain Records for Audit & Post-Clearance

Non-Preferential origin

Case law

Topic Case (link) Date Key holding (one line) Practical takeaway
Non-preferential / substantial transformation (steel pipes) C-86/24 — CS STEEL a.s. v Generální ředitelství cel. (EUR-Lex) (EUR-Lex) 2 Oct 2025 Annex 22-01’s primary rule excluding cold-reduction as a change of origin for certain hot-finished steel tubes is valid — later cold finishing did not create a new origin. If a primary rule in the UCC/Delegated Reg. lists which operations change origin, those codified rules override ad-hoc arguments that later processing creates origin; check the exact Annex entry for the HS code. 
Binding Origin Information (BOI) / administrative review C-297/23 P — Harley-Davidson Europe Ltd & Neovia Logistics v Commission (EUR-Lex / CURIA) (EUR-Lex) 21 Nov 2024 The Court reviewed Commission revocation of BOI decisions — clarified scope of ‘processing not economically justified’, administrative procedure and legitimate-expectation limits on revoking BOIs.  BOIs provide useful certainty but can be revoked; companies should document economics/processing rationale and be ready to contest revocations on procedural or substantive grounds. 
Non‑preferential / substantial transformation (steel cables)
C‑260/08 — Bundesfinanzdirektion West v HEKO Industrieerzeugnisse GmbH (EUR‑Lex)
10 Dec 09
The Court held that “substantial processing or working” for non‑preferential origin may arise even without a change in tariff heading, if the processing results in a product with its own specific properties and composition distinct from the input product, and that non‑binding list rules cannot alter Article 24’s meaning.
For non‑preferential origin analysis, don’t rely solely on tariff‑heading changes or list rules: assess whether the processing results in qualitatively new product properties that reflect a genuine substantial transformation under UCC Article 60(2) (formerly CC Article 24).










Non-Preferential origin

Decision flow non-preferential origin

Non-Preferential origin

Template non-preferential origin (long term) supplier declaration

Suppliers declaration for products of non-preferential origin - Single use


I, the undersigned, declare that the goods listed on this invoice (1) were produced (2).

⃞  in the European Union, namely in according to the Union Customs Code art. 61 sub 3 (4).
⃞  outside the European Union and originate in (3) and satisfy the rules of origin(5).

I undertake to make available to the Chamber of Commerce any further supporting documents they require.

Place and date:

Name and position:

Signature:




invoice number.


Notes for completion of the declaration:

(1) State the number of the invoice or other document in which the shipment is sufficiently specified. The number needs not to be mentioned if the statement is placed on the invoice.

marked .................... were produced in .................... and...’

(2) State just the applicable option. If products are delivered of EU origin together with products of non-EU origin, various supplier’s declarations should be issued.

(3) State the country of origin (member state of the European Union); if various goods are of different origins, these origins shall be mentioned to each item.

(4) According to Regulation (EU) 952/2013 art. 61 sub 3. (PB L 269 of 10.10.2013).

(5) State the country of origin; if various goods are of different origins, these origins shall be mentioned to each item.


Verification of this declaration by means of a certificate of origin, issued by the supplier’s regional Chamber of Commerce, may be required by the buyer’s regional Chamber of Commerce.


This declaration is not valid for goods having preferential origin status and which qualify for movement certificates EUR.1, EUR-MED or invoice declaration. For such use the “declaration for products having preferential origin status”according to Regulation (EU) 2015/2447 Annex 22-15 (PB L 343 of 29.12.2015) is applicable.





Suppliers declaration for products of non-preferential origin - Regular use

Long-term suppliers declaration for products of non-preferential origin


I, the undersigned, declare that the goods described below (1)(2)
___________

which are regularly supplied to (3),

___________

are produced (4)

⃞ in the European Union, namely in according to the Union Customs Code art. 61 sub 3. (6)

⃞ outside the European Union and originate in (5), and satisfy the rules of origin(7).


This declaration is valid for all shipments of these products dispatched from ______  to ________(8).





I undertake to inform ___________(3) immediately if this declaration is no longer valid.


I undertake to make available to the Chamber of Commerce any further supporting documents they require.


Place and date:


Name and position:


Name and address of the company:


Signature:




Notes for completion of the declaration:

(1) Description of the goods.

(2) Trade description as used on invoices, e.g. model No.

(3) Name of buyer.

(4) State just the applicable option. If products are delivered of EU origin together with products of non-EU origin, various suppliers declarations should be issued.

(5) State the country of origin (member state of the European Union); if various goods are of different origins, these origins shall be mentioned to each item.

(6) According to Regulation (EU) 952/2013 art. 61 sub 3. (PB L 269 of 10.10.2013).

(7) State the country of origin;  if various goods are of different origins, these origins shall be mentioned to each item.
​​(8) Give the dates. The period of validity shall not exceed 24 months.




This declaration is not valid for goods having preferential origin status and which qualify for movement certificates EUR.1, EUR-MED or invoice declarations. For such use the “declaration for products having preferential origin status” according to Regulation (EC) 2015/2447, art. 62, annex 22-16 (PB L 343 of 29.12.2015) is applicable.


Non-Preferential origin

Verification of Supplier's Declaration - Non-Preferential Origin

Purpose

To ensure that supplier declarations claiming non-preferential origin are accurate, legally compliant, and auditable for EU customs purposes.


Step 1: Collect the Supplier Declaration


Step 2: Verify Supplier Credentials


Step 3: Check Completeness of the Declaration


Step 4: Validate Basis of Origin


Step 5: Check Supporting Evidence


Step 6: Cross-Check Against Legal Requirements


Step 7: Approve or Request Clarification


Step 8: Record Retention


Step 9: Periodic Review


This procedure ensures that your non-preferential origin declarations are reliable, auditable, and legally defensible in case of customs verification or post-clearance checks.

Non-Preferential origin

Issue ITR Declaration of Origin

The declaration of origin (DoO) report is produced from the terminal operating system and provides an overview of the breakdown of the components and administrative lots that were included in the blending operations. Origin determination is based on the DoO.


editor_310_5_758c6e21-787b-478f-960d-74fff657247b_rte_image_477.png
Non-Preferential origin

Work instruction (commercial incentive)

In practice, there are two types of documents that refer to non-preferential origin:

  1. An official Certificate of Origin (CoO), which exporters can obtain by applying to the competent Chamber of Commerce or the relevant customs authorities; and

  2. A commercial document declaring the non-preferential origin (Terminal Origin Declaration).

Upon request, our terminal can assist with the application for the relevant certificate or document via a broker authorised to apply for an official CoO (digital connection required). When applying with the Chamber of Commerce the burden of proof is greater than when issuing a Terminal Origin Declaration, because the latter is not an official document and it is the discretion of the Terminal to conclude on origin and the proof that is provided. For example, when documentation is provided that the Product comes from a refinery in Italy the Terminal may be inclined to accept this as sufficient proof, where the Chamber of Commerce is likely to require a Suppliers declaration for non-Preferential origin. Apart from whether or not the proof of origin for the components is sufficient or not, the procedure in determining the origin should be the same with the terminal itself and the Chamber.


Our Customer Service team determines the non-preferential origin in accordance with the following criteria:



Below some concrete examples on applying the procedure for establishing the non-preferential origin.

1. Products added to the “base” product may enhance or improve it, but do not alter its essential nature. Such activities are considered minimal operations and do not confer origin.

As this involves blending rather than mere storage, the major portion rule applies, provided that customers inform us of the origin and substantiate it with appropriate documentation. This requirement applies at least to the parcel representing the major portion based on weight. The origin of the remaining parcels may be unknown without affecting this assessment. 

Components




TankProductCommodity codeStatusOriginKilogramLiters 15
T xGasoline RON 952710 1245 90T2 - Excise controlledNorway35.096.53045.579.910
T xAdditive3811 1900 90T2 - Excise controlledUnknown244.894349.849







Blended product




T xGasoline RON 952710 1245 90T2 - Excise controlledNorway35.341.42445.929.758


2. Various components blended into a specific product (which itself is also used as a component) may be regarded as deliberate and proportionate blending and therefore origin-conferring.

The processed product results from the combination of several significant components. The fact that one of these components shares the same Commodity code as the final product does not alter this assessment. In quantitative terms, it is not considered a “base” product to which only minimal operations are applied. Accordingly, a new product is deemed to have been created. The majority of the product is not RON 95. The process here is to get the RON 91 to a RON 95 making it a process to obtain a Product by deliberate and proportionate blending.

Components






Tank

Product

Commodity code

Status

Origin

Kilogram

Liters 15

T x

Gasoline RON 91

2710 1241 90

T1 - Bonded

Norway

28.077.224

36.463.928

T x

Naphta

2710 1225 90

T1 - Bonded

Unknown

5.565.992

7.951.417

T x

Alkylate

2710 1290 90

T2 - Excise controlled

Unknown

4.634.938

6.019.400

T x

Gasoline RON 95

2710 1245 90

T2 - Excise controlled

Unknown

17.670.712

22.948.977

T x

Additive

3811 1900 90

T2 - Excise controlled

Unknown

244.894

349.849








Blended product






T x

Gasoline RON 95

2710 1245 90

T1 - Bonded

EU/Netherlands

56.193.763

73.733.571


3. Various components (classified under the same Commodity code but possessing different technical characteristics) blended into a specific product may be regarded as deliberate and proportionate blending, thereby conferring origin, provided that the resulting product acquires new technical specifications or attributes that it did not possess prior to blending. The fact that all components share the same Commodity code as the final product is not relevant.

Components




TankProductCommodity codeStatusOriginKilogramLiters 15
T xRMK 5002710196800T2 - Excise controlledUnknown
427.486429.112
T xRMK 5002710196800T2 - Excise controlledUnknown
243.967244.894
T xHSFO2710196800T2 - Excise controlledUnknown4.634.9384.617.392
T xIMFO2710196800T2 - Excise controlledUnknown5.565.9925.587.141
T xCutterstock2710196800T1 - BondedMalaysia43.870.66344.037.332







Blended product




T xHSFO2710196800T1 - BondedEU/Netherlands54.743.04654.915.871

4. Same example as last, but now also the Commercial name is the same. Here it is merely storage and each Lot keeps its origin.

Components




TankProductCommodity codeStatusOriginKilogramLiters 15
T xHSFO2710196800T2 - Excise controlledUnknown
427.486429.112
T xHSFO2710196800T2 - Excise controlledUnknown
243.967244.894
T xHSFO2710196800T2 - Excise controlledUnknown4.634.9384.617.392
T xHSFO2710196800T2 - Excise controlledUnknown5.565.9925.587.141
T xHSFO2710196800T1 - BondedMalaysia43.870.66344.037.332







Blended product




T xHSFO2710196800T2 - Excise controlled
Unknown
427.486429.112
T x
HSFO
2710196800
T2 - Excise controlled
Unknown
243.967
244.894
T x
HSFO
2710196800
T2 - Excise controlled
Unknown
4.634.938
4.617.392
T x
HSFO
2710196800
T2 - Excise controlled
Unknown
4.634.938
5.587.141
T x
HSFO
2710196800
T1 - Bonded
Malaysia
43.870.663
44.037.332




        










Non-Preferential origin

Work instruction (simplified process)

In practice, there are two types of documents that refer to non-preferential origin:

  1. An official Certificate of Origin (CoO), which exporters can obtain by applying to the competent Chamber of Commerce or the relevant customs authorities; and

  2. A commercial document declaring the non-preferential origin (Terminal Origin Declaration).

Upon request, our terminal can assist with the application for the relevant certificate or document via a broker authorised to apply for an official CoO (digital connection required). When applying with the Chamber of Commerce the burden of proof is greater than when issuing a Terminal Origin Declaration, because the latter is not an official document and it is the discretion of the Terminal to conclude on origin and the proof that is provided. For example, when documentation is provided that the Product comes from a refinery in Italy the Terminal may be inclined to accept this as sufficient proof, where the Chamber of Commerce is likely to require a Suppliers declaration for non-Preferential origin. Apart from whether or not the proof of origin for the components is sufficient or not, the procedure in determining the origin should be the same with the terminal itself and the Chamber.


Our Customer Service team determines the non-preferential origin in accordance with the following criteria:



The main rule for energy energy products under Tariff heading 2710 is that only when there is a change of Traiff heading (i.e. first 4 digits of the Commodity code) changes in the sense that the none of the components have the same Tariff Heading as the End Product. The refining process is the most common example where the input is product of Tariff heading 2709 (crude) and the output is 2710. When dealing with components and end products of Tariff Heading 2710 no blending operation is considered origin conferring. This means that if it is considered blending the major portion rule based on weight is applied. In case of Storage each Lot keeps its origin.

Below some concrete examples on applying the procedure for establishing the non-preferential origin.

1. Not the same Commodity code so the major portion rule is applied based on the qty. Here the Component of Gasoline RON 95 determines the origin of the blended Product being the Norwegian origin.

Components




TankProductCommodity codeStatusOriginKilogramLiters 15
T xGasoline RON 952710 1245 90T2 - Excise controlledNorway35.096.53045.579.910
T xAdditive3811 1900 90T2 - Excise controlledUnknown244.894349.849







Blended product




T xGasoline RON 952710 1245 90T2 - Excise controlledNorway35.341.42445.929.758


2. Here the same principle applied. The Commodity code is not the same, so the major portion rule applied. The sum of qty's with Unknown origin exceeds the Norwegian qty by just a bit (28.116.536 KG vs 28.077.227 KG), whereby the Blended product has an origin that is unknown.

Components




TankProductCommodity codeStatusOriginKilogramLiters 15
T xGasoline RON 912710 1241 90T1 - BondedNorway28.077.22436.463.928
T xNaphta2710 1225 90T1 - BondedUnknown5.565.9927.951.417
T xAlkylate2710 1290 90T2 - Excise controlledUnknown4.634.9386.019.400
T xGasoline RON 952710 1245 90T2 - Excise controlledUnknown17.670.71222.948.977
T xAdditive3811 1900 90T2 - Excise controlledUnknown244.894349.849







Blended product




T xGasoline RON 952710 1245 90T1 - BondedUnknown56.193.76373.733.571

3. Various components classified under the same Commodity code, but with a different commercial name, are blended into a specific product HSFO. The Commodity code is the same, but still the Products are different from a commercial standpoint. The Malaysian qty by weight is the major portion so the end product gets the Malaysian origin.

Components




TankProductCommodity codeStatusOriginKilogramLiters 15
T xRMK 5002710196800T2 - Excise controlledUnknown
427.486429.112
T xRMK 5002710196800T2 - Excise controlledUnknown
243.967244.894
T xHSFO2710196800T2 - Excise controlledUnknown4.634.9384.617.392
T xIMFO2710196800T2 - Excise controlledUnknown5.565.9925.587.141
T xCutterstock2710196800T1 - BondedMalaysia43.870.66344.037.332







Blended product




T xHSFO2710196800T1 - BondedMalaysia54.743.04654.915.871

4. Same example as last, but now also the Commercial name is the same. Here it is merely storage and each Lot keeps its origin.

Components




TankProductCommodity codeStatusOriginKilogramLiters 15
T xHSFO2710196800T2 - Excise controlledUnknown
427.486429.112
T xHSFO2710196800T2 - Excise controlledUnknown
243.967244.894
T xHSFO2710196800T2 - Excise controlledUnknown4.634.9384.617.392
T xHSFO2710196800T2 - Excise controlledUnknown5.565.9925.587.141
T xHSFO2710196800T1 - BondedMalaysia43.870.66344.037.332







Blended product




T xHSFO2710196800T2 - Excise controlled
Unknown
427.486429.112
T x
HSFO
2710196800
T2 - Excise controlled
Unknown
243.967
244.894
T x
HSFO
2710196800
T2 - Excise controlled
Unknown
4.634.938
4.617.392
T x
HSFO
2710196800
T2 - Excise controlled
Unknown
4.634.938
5.587.141
T x
HSFO
2710196800
T1 - Bonded
Malaysia
43.870.663
44.037.332
Please keep in mind that as long as a known origin in this context is the major portion, it is ok that the origin of the rest is Unknown. However, if the major portion is not decisive you will need to know the origin of the other Lots as well to come to a conclusion. You cannot simply conclude the result is origin Unknown.

Proof of Union status

In the energy products industry the products are commonly transported from one place in the Union to another place in the Union. For that purpose documents are issued to proof the Union customs status, meaning that the goods come from the free circulation of the Customs Union. 


Proof of Union status

T2L / T2L(F)

T2L / T2L(F) may only be issued after the CSC department has verified that the goods (and the underlying lots) have Union customs status.

Only trained and authorized personnel may issue documents according to the respective authorizations:

This procedure applies only to goods:

The Customer submits the necessary information for issuing a T2L or T2L(F).

CSC verifies that the goods qualify for Union status proof via T2L / T2L(F):

If discrepancies exist, the request is placed on hold until clarified with the Customer or resolved in the administration.

As soon as the Union customs status is confirmed with the required underlying documentation, CSC will use the PoUS system to issue a T2L(F), in accordance with the instruction as prescribed in the procedure provided by Dutch Customs. This procedure can be found here:

https://www.bzctrl.com/bzctrl-core-api/api/v1/docrepo/getDocument/16302450-0ea2-4dea-bab1-9eba626cac50







Proof of Union status

A.TR Documents

A.TR documents may only be issued after the CSC department has verified that the goods (and the underlying lots) have Union customs status.
Only trained and authorized personnel may issue documents according to the respective authorizations:

A.TR documents are issued solely for movements of goods within the framework of the EU-Turkey Customs Union, for the purpose of proving free-circulation status, not origin.

CSC verifies that:

If inconsistencies appear, the request is held until corrected.

As soon as it is confirmed that the goods are eligible for issuing an A.TR CSC will issue an A.TR together with the Export declaration in accordance with the procedure as prescribed by Dutch Customs, which can be found here:

https://www.bzctrl.com/bzctrl-core-api/api/v1/docrepo/getDocument/361e2636-b6b7-4bf1-a715-76a381ba8767