In order for a packaged good (prepared for retail sale, e.g. packaged in smaller units) to be considered as originating in the European Union (EU), it must meet certain conditions regarding the rules of origin of goods. These rules derive from EU customs legislation and are designed to determine the extent to which a product has actually been produced or processed in the EU.
What conditions must a good meet to be classified as originating in the European Union?
1. In order for goods to be labelled as made in the EU, they must be…. fully manufactured in the EU
If the raw materials or intermediate products of which the good is composed originate entirely within the EU, the origin of the good can be considered to be EU. An example would be an agricultural product, such as fruit harvested in an EU Member State.
2. Goods must be sufficiently processed in the EU
If the good is manufactured from raw materials originating outside the EU, it is crucial that the processing in the EU is advanced enough to be considered an EU-origin product. These criteria may vary depending on the type of goods and are set out in customs regulations.
What processing of a good carried out within the EU can cause it to be classified as a product originating in the European Union?
- Tariff reclassification – a product changes its tariff category according to the Combined Nomenclature (CN) as a result of processing in the EU.
- Added value – the value of materials and processing in the EU must reach a certain percentage of the value of the final product (e.g. a minimum of 50% of the value must come from the EU).
- Specific operations – in some cases, the legislation specifies in detail what operations must be carried out in the EU for a product to obtain EU origin status.
3. the status of ‘goods from the European Union’ will not be obtained by labelling, packaging and other simple operations on the product
Operations such as packing, labelling, sorting, cleaning or packaging are not considered sufficient to confer ‘EU origin’ status. This means that if goods imported from outside the EU are merely packed or transferred into retail packaging in the EU, they cannot be considered to have EU origin.
4. What documentation and certificates are needed to mark goods as originating from the EU?
In order for goods to be considered as originating in the EU, a company must be able to document the origin of the raw materials and the processing processes. In some cases, it is necessary to obtain a certificate of origin, which confirms that the product complies with EU rules of origin.
What rules govern the recognition of goods as having been produced within the European Union?
In order for goods processed from components purchased outside the European Union to be considered as originating in the EU, they must comply with certain rules of origin, which depend on the type of goods. In particular, these rules are set out in the EU Customs Code and in trade agreements concluded between the EU and other countries.
There is no one-size-fits-all percentage that can be applied to all goods, as regulations vary depending on the industry and type of product. However, some general principles can be identified:
1. what is the added value (Value-Added Rule) a product must have in order to obtain the qualification: produced in the EU’?
In some cases, a product may be considered EU-origin if a certain proportion of its value is derived from production processes or materials originating in the EU. Typically:
- A minimum of 50% of the added value of the final product must come from the EU. This means that the value of EU-sourced materials and EU processing costs must account for at least half of the value of the final product.
2. Tariff Shift Rule for a product when placed on the EU markets
For some products, the rules of origin may require that the final product, after processing in the EU, be in a different tariff category according to the Combined Nomenclature (CN) than the materials used in its production. For example, the raw materials may belong to one tariff class and the final product to another, allowing the product to be considered as originating in the EU.
3. Specific operations (Specific Process Rule) on products according to rules of origin:
For some products, the rules specify specific operations that have to be carried out in the EU for the product to be considered EU-origin. Sometimes these operations are more specific than the general value-added rule. Examples are chemical or textile products for which specific technological processes are defined.
4. maximum share of non-EU originating materials:
In some cases, the regulations may specify that the maximum share of materials originating outside the EU must not exceed a certain threshold. This is often, for example, 40-50% of the value of the final product. In such a case, no more than 40-50% of the value of the good can come from materials or components from third countries for the product to be considered EU-origin.
*Have doubts about the classification of goods when importing from non-EU countries? Do you need help to import correctly? We look forward to working with you – we offer comprehensive support from our specialists in the import and export of goods to and from non-EU markets. We design supply chains and organise the fastest, cheapest and most convenient way to transport your goods in Poland and around the world. Please use our contact form to enter all your questions about prices, methods and possibilities of organising transport with ASL.