Our services
How Country of Origin and Marking Impact Your Company
The country of origin of a product may determine the duty rate that applies to that product. It will impact whether the product is eligible for certain preferential duty programs such as the duty-free provisions of the Generalized System of Preferences, and whether antidumping or countervailing duties may also apply to a product. An accurate statement of country of origin must also be “marked” on the product invoice and included on a label on the product itself or its packaging.
For products processed in more than one country or made using component materials from more than one country, the rules for determining the country of origin of a product are subjective and are greatly influenced by the particular product at issue and the particular processing performed in each country. In the U.S., the country of origin is generally the last country in which processing performed “substantially transformed” the product into a new article of commerce. This rule often conflicts with the rules applied by supplier countries which may be based on a value-added test, and which creates conflicts concerning proper marking. Because U.S. Customs and Border Protection will detain or request redelivery of merchandise and will assess penalties for improper marking, it is essential that this issue be addressed proactively.
Our Services
We assist clients to confirm the correct country of origin of their products and how desired processing location changes can impact origin and duty rates.
We also assist clients to create country of origin markings that will satisfy multiple jurisdictions and to obtain exceptions from marking as well as Customs’ permission for repackaging.
Finally, we assist clients to determine whether they qualify under the more stringent rules for “Made in the USA” labeling and for claiming U.S.-origin in the context of government procurement programs.
We can confirm our position on country of origin and marking issues with the customs authorities through binding rulings and can fix any errors discovered and minimize or eliminate penalties through prior disclosures.
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