Origin engineering is a legal supply chain strategy where a company adjusts manufacturing, sourcing, assembly, or production steps so goods qualify for a different country of origin. In international trade, this may help reduce duty exposure, avoid punitive tariffs, meet free trade agreement requirements, or improve market access. Origin engineering must be based on real, documented production changes and must comply with customs rules for substantial transformation, rules of origin, and country-of-origin marking.
- Legitimate strategy when manufacturing processes are genuinely relocated
- Circumvention (transshipment with no substantial transformation) is illegal and subject to CBP penalties
- Origin engineering may involve moving a manufacturing step such as cutting and sewing to a different country
- CBP actively investigates schemes that claim origin change without genuine substantial transformation
Related terms: Anti-Dumping Duties, Customs Valuation.
