Country of origin is the country where a product was grown, produced, manufactured, or substantially transformed for customs purposes. It is not always the same as the country of export or the place where the goods were shipped from. Customs authorities use country of origin to determine duty rates, trade agreement eligibility, marking requirements, quotas, sanctions, anti-dumping or countervailing duties, and admissibility rules. Correct origin determination is essential for accurate import compliance and landed cost calculation. For goods involving multiple countries, origin is where the last substantial transformation occurred.
Why Country of Origin Matters
- Determines whether preferential FTA duty rates apply
- Triggers anti-dumping and countervailing duty liability for covered products
- Governs origin marking requirements for retail goods
- Required on the commercial invoice, bill of lading, and customs entry
The U.S. uses a substantial transformation test to determine origin. The EU and other markets use specific rules of origin under FTAs.
Related terms: Certificate of Origin (CoO), Anti-Dumping Duties, Country of Origin Marking.
