Expert Miniseminar: Customs Origin of Goods and Made in EU

The issue of customs origin of goods and the Made in EU label was the topic of another mini-seminar organised for CzechInvest managers.The topic responded to the information needs coming mainly from Asian investors regarding the determination of customs tariffs between the EU and other countries. Experts from KPMG, Tomáš Havel, Senior Tax Manager, and Lukáš Arazim, Senior Tax Consultant, presented the key principles and online tools of the European Union that make it easier for companies to correctly determine the origin of goods for customs purposes.

The customs origin of goods is a key factor that affects the level of customs tariffs, trade preference options and compliance in international trade. As part of its common customs policy, the European Union establishes a common customs tariff which, among other things, sets preferential tariffs (reduced or zero) for selected countries on the basis of international agreements. 

The correct determination of the country of origin of goods is a prerequisite for the selection of the correct tariff rate. The rules of origin are used to determine where the goods were manufactured or where their last significant processing took place. One criterion is, for example, the proportion of non-originating materials in the value of the goods, which cannot exceed 40%, so activities such as mere assembly or mixing are generally not sufficient to obtain the origin of the goods. Other criteria are based, for example, on the classification of the materials and the final product in the customs nomenclature. EUR.1 certificates or invoice declarations are most commonly used to prove origin. 

The speakers presented the European Union's online tool "Access2Markets" for self-assessment of rules of origin, which can help companies to better understand the requirements. Manufacturers and exporters can check whether their goods meet the conditions under the relevant international agreement. A list of agreements and regulations can be found on the website of the Customs Administration of the Czech Republic.