Criteria of Origin

Criteria of Origin

1. Requeriments

   • That the product is originating; that it complies with the specific Rules of Origin or complementary provisions.
     • That you have a document proving that it is originating
       • Transported direct from the country of origin to the country that will grant preference

2. Regional Cost Value

   • A percentage that indicates to what extent a good has been produced in the local region of the producer. The origin of the components or materials of the merchandise and the location of construction or production of this can influence that percentage.
     • TVM: seeks to determine a percentage of regional content using a technique that makes use of the WTO customs valuation system
       • • 60%
     • NCM: makes use of generally accepted accounting principles
       • • 50%

3. Tariff Jump

   • Is the criterion most used in the elaboration of specific rules of origin, arriving to consider as a basic criterion for the determination of origin.
     • -Determine the classification of the final product.
       • -Changes with respect to the tariff classification of raw materials or inputs imported from third countries.
         • -The change in tariff classification can occur mainly at the level of: chapter, heading or subheading.
   • It is the establishment of a production facility within a foreign country, through FDI or licensing, in order to avoid a tariff.
     • Its application consists in:

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