Definition
Country of origin is the country where a product was manufactured, produced, or underwent its last substantial transformation. Under U.S. customs law, the country of origin determines the applicable duty rate, eligibility for preferential trade agreements (like USMCA), exposure to additional tariffs (like Section 301 duties on China), and marking requirements.
Why It Matters for Importers
The country of origin declared on your customs entry drives some of the most consequential financial outcomes in importing. A product originating in a country with a free trade agreement may enter duty-free, while the same product from a different country could face duties of 25% or more. Getting origin wrong can mean paying Section 301 tariffs you don't owe, or missing trade agreement savings you're entitled to.
Country of origin also determines whether your product is subject to AD/CVD duties, UFLPA enforcement, or other trade restrictions. CBP actively investigates origin fraud, particularly transshipment schemes designed to evade country-specific tariffs.
Key Details
- Substantial transformation: The primary test for origin. If raw materials from one country are manufactured into a new product in another country, the country of manufacture is typically the origin.
- Marking requirements: Under 19 USC 1304, every imported article must be marked with its country of origin in English, in a conspicuous place, permanently and legibly.
- Trade agreement rules: Each trade agreement (USMCA, etc.) has its own rules of origin that products must satisfy to qualify for preferential rates.
- Penalty exposure: Declaring a false country of origin can result in seizure of goods, penalties, and criminal prosecution.
Origin determination is complex but critical. Read our guide to country of origin determination.
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