The country of origin refers to the country where a product is manufactured, assembled, or substantially transformed. It plays a crucial role in international trade by affecting import duties, trade agreement eligibility, and labeling requirements.
While it may sound straightforward, rules of origin differ across countries and trade agreements. These rules determine the true origin when production involves multiple countries.
Example: If a jacket is sewn in Vietnam using fabric from China, most rules of origin classify Vietnam as the country of origin. It is because the garment undergoes a substantial transformation there, turning raw fabric into a finished product.
A Certificate of Origin (COO) is an official document that certifies the location of a product’s manufacturer. Many customs authorities require it to:
- Apply the correct tariff rate.
- Enforce trade agreements.
- Confirm eligibility for preferential duty treatment.
Exporters typically get COOs from chambers of commerce or other authorized agencies.
