Preferential origin
Also called: originating status · tercihli menşe
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 shown with a proof of origin such as a movement certificate or a statement made by the exporter, and is tested against product-specific rules in the agreement.
In practice
Preferential duty is never automatic: the importer must claim it with a valid proof and can be asked to repay the duty if the proof later fails verification.
Related terms
- Rules of origin
- The legal criteria that decide in which country goods are considered to have been produced. Preferential rules, set in each trade agreement or…
- Proof of origin
- The document or statement that supports a claim to preferential origin at import. Depending on the agreement it is a certificate issued by…
- Free trade agreement
- An agreement between two or more countries removing duties on most trade between them, while each keeps its own external tariff. Benefits are limited…
- 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…
- MFN duty
- The normal duty a WTO member applies to imports from other WTO members unless a preference or special measure applies. In the EU it is called the…