Absorption rule
Also called: roll-up · intermediate materials rule
The principle that a material which has acquired originating status by meeting its own origin rule counts as fully originating when used in a further product, without its non-originating content being counted again. It applies in most EU and US preferential agreements, with some limits in certain product rules.
In practice
Tracing origin at component level can make a final product qualify that would fail if all imported inputs were counted.
EU
Türkiye
UK
USARelated terms
- Preferential origin
- Origin status under the rules of a specific free trade agreement or unilateral preference scheme that entitles goods to a reduced or zero duty. It is…
- Non-originating materials
- Materials used in production that do not qualify as originating, including inputs from third countries and inputs of undetermined origin.…
- Product-specific rules of origin
- The rules listed by HS chapter or heading in an annex to a trade agreement that state what processing is needed for a product to originate. Typical…