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General Procedure: Determination of Non-Preferential Origin

Work

Step in1 progress


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StepActionLegal basis / notes
1. Determine ifClassify the goodsGoods

    • are
    • “wholly obtained” in one country
Check if all materials, production, extraction, etc happen in a single country or territory. If yes → that country is

Determine the origin.

UCC Article 148(1). 
2. If not wholly obtained → identify the last country of productionWhen two or more countries intervene, identify the country where the last “substantial, economically justified processing or working” was undertaken.UCC Article 148(2). 
3. Assess whether processing qualifies as “substantial, economically justified”• Check that the processing is more than minimal operations (i.e., not just packaging, sorting, trivial finishing).
 • Check that the processing is economically justified (not purely to circumvent duties or rules).
• Check that the result is a new product or important stage in manufacture (change of properties, composition, classification).
4. Determine applicable rule: list rule or residual rule• If the good is listed in Annex 22-01 to UCC-DA (or equivalent) then apply the binding list rule for that HS heading.
• If not listed, use the residual rule: origin is the country where the major portion of materials originated (by value or weight) OR last substantial processing took place. 
5. Verify tariff classification of the goods and materialsTariff classification influences the list rule application and residual rule. Ensure correct HS/CN code of the final product.

  • Check whether the product is listed in Annex 22‑01 (or other EU codified rules).

    • Step 2 - Check if Goods Are Wholly Obtained

      • Confirm extraction, production, or manufacture occurred entirely in one country.

      • If yes → assign origin to that country; no further steps required.

    Step 3 - Identify All Countries of Production/Processing

      • List all countries involved in the supply chain (raw materials, intermediate products, semi-finished goodgoods).

    Step 4 - Assess Substantial Transformation

      • For each processing step, determine:

        • Nature of operation (chemical change, assembly, finishing)

        • Economic justification (not solely for tariff avoidance)

        • Resulting change (new HS heading, change in physical or chemical properties).

    Step 5 - Apply Codified List Rules (if applicable)

      • Check Annex 22‑01 or equivalent for the HS code.

      • Verify whether the last operation qualifies as “substantial transformation” under the codified rule.

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

      • Determine the last economically justified processing or use majority material/value rule to assign origin.

    Step 7 - Document All Steps

      • Record:

        • Input materials, their origin, and inputs.


    6.HS Compileclassification

  • Production steps and retainlocations

    supporting
    • documentation    		Retain
  • production

    Processing records,dates materialand origin,invoices

    processing
    • steps,
  • location

    Evidence of operations,substantial invoices,transformation customs(technical classifications.specs, Thechange declarantof isproperties, responsible.quality


    • tests).

    7.Step 8 - Declare Origin in Customs Procedure

      • Include origin in customsimport releasedeclaration for free circulation

    		At.

    import into

  • Attach supporting documents as requested.

    • Step 9 - Maintain Records for Audit & Post-Clearance

      • Retain all documentation for the EU,statutory theperiod declarant(usually must3–5 indicateyears).

        the
      • non-preferential origin. Customs authorities may request proof.

    8.

    Be readyprepared for post-clearancecustoms checks

    		Customs may challenge the declared origin if there is “reasonable doubt”. Be ready with evidence and audit trail.
    9. Update internal processes and alertsMonitor changes in list-rules, Annex updates,inspection or newadministrative CJEU decisions (e.g., special rules for certain HS headings). Review supply-chain changes (new country, new process). 


    review.



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