Country of Origin Determinations

What is a Country of Origin Determination?

As defined at 19 CFR § 134.1 (b), the Country of Origin (COO) Determination for customs entry is the country of manufacture, production, or growth of any article of foreign origin entering the United States. When additional work occurs to articles in another country, a substantial transformation is required to change the Country of Origin of a product. Importers often struggle to prove a substantial transformation has taken place. COO affects the applicable tariffs, duties, and compliance with trade regulations when goods are imported into a country, so it is subject to scrutiny by U.S. Customs and Border Protection (CBP).

A different concept from COO as declared on an entry is Country of Origin marking, which must clearly indicate to the consumer where a product was made. COO marking provides consumers with basic information to use in making their purchasing decisions. The Country of Origin marking should inform the consumer where the item was manufactured, produced, or processed. Accurate Country of Origin marking and supporting documentation are critical components of customs compliance, and the misrepresentation of COO on a marking can trigger detentions, investigations, and high penalties with CBP.

Marking Requirement at 19 CFR § 134.13 (a):

An article within the provisions of this section shall be marked with the name of the Country of Origin at the time the article is withdrawn for consumption unless the article and its container are exempted from marking.
Marking is legible and permanent.

Finally, Free Trade Agreements, or FTAs, establish their own separate set of rules of origin. To qualify for preferential duty treatment under a Free Trade Agreement, an importer or exporter must understand the specific rules of the applicable FTA. False claims under FTAs can result in serious penalties.

How do Country of Origin Determinations impact businesses?

Importers must provide accurate and compliant Country of Origin documentation to avoid penalties, delays, and additional enforcement actions from CBP authorities. Common mistakes importers make regarding Country of Origin are country determination errors or the complete absence of proper support documentation. These errors often occur from accuracy assumptions with supplier-provided information or unfamiliarity with the regulations on how Country of Origin is determined. Violations related to Country of Origin Determinations can result in penalties under 19 U.S.C. § 1592, which can be substantial depending on the level of culpability: fraud, gross negligence, or negligence. Appropriate training, staying updated on current regulations, and prioritizing reasonable care are essential to help mitigate these common mistakes.

How can Schulz Trade Law PLLC (STL) help clients with Country of Origin Determinations?

Determining Country of Origin for products is a fundamental aspect of international trade compliance that impacts customs entries, marking and labeling, and claims to preferential duty treatment. Schulz Trade Law PLLC (STL) has deep experience in making Country of Origin Determinations and counsels clients regularly in complex COO matters. Our trade attorneys and analysts provide detailed guidance on Country of Origin analyses, proper marking methods, documentation accuracy, and, where necessary, COO ruling requests. STL’s strong emphasis on regular staff training for our clients helps them stay updated on changing regulations and avoid failures. Whatever your unique situation, we have the knowledge and experience to assist with any Country of Origin Determination challenges.