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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.

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