Country of Origin & Marking

The country of origin of a product can affect its duty rate and preference program eligibility as well as whether it’s subject to AD/CV duties, trade sanctions, or other import restrictions. Failure to properly determine the country of origin, and to mark imported goods with that information, can result in penalties, loss of duty preferences, and detentions or seizures.

In today’s global supply chains, however, it can be difficult to determine the country in which origin is conferred. Many free trade agreements and preference programs require goods to be substantially transformed in a partner country to gain duty benefits, but when products undergo processing in or incorporate parts from multiple countries it can be a challenge to achieve and confirm compliance. And with origin rules that can vary by agreement or program, the origin of a product under one may not be the same for another. 

Using STR’s expertise to gain a more thorough understanding of your products, production processes, and sourcing patterns can facilitate compliance, avoid problems, and even reveal potential cost savings.

Tariff reduction: Careful analysis can reveal ways to structure supply chains so that an imported product’s origin qualifies it for favorable duty rates or exclusion from higher tariffs under Section 301, Section 232, and other U.S. trade laws.

Marking: Imported goods don’t have to be marked with a foreign country of origin if they have enough domestic content and aren’t substantially transformed abroad, saving companies money and presenting “Made in USA” marketing opportunities. If that’s not an option, key production processes can be shifted so that products are eligible for more advantageous labeling as to where they are made.

Predictability: STR regularly helps companies secure favorable rulings from CBP on complex origin issues, which brings greater certainty on import duty, marking, and other issues to longer-term business planning operations.