How should the country of origin be filled out in re-export trade? Can any expert advise me?
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I've recently been handling re-export trade business, and I'm a bit confused when filling out the country of origin. Goods are procured from Country A, shipped to Country B for processing, and then transshipped to Country C. Should the country of origin be Country A or Country B? Also, do different trade terms affect how the country of origin is filled out? Can any professional help me clarify what principles should be followed when declaring the country of origin in re-export trade?
Trade Expert Insights Answers
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
In re-export trade, the determination of the country of origin generally follows the 'substantial transformation' principle. If goods undergo only simple processing in Country B, such as sorting or packaging, without substantial transformation, the country of origin is generally declared as Country A. Substantial transformation refers to situations where, after processing, the goods' tariff classification under the Harmonized Commodity Description and Coding System changes, or their added value reaches a certain proportion. If the goods' tariff classification changes or the value-added proportion is met after processing in Country B, the country of origin should be declared as Country B. Different trade terms, such as FOB, CIF, etc., do not directly affect the determination of the country of origin; they primarily relate to aspects of cargo transportation, insurance, and risk transfer. Therefore, it's necessary to consider the processing situation comprehensively and accurately fill in the country of origin based on the 'substantial transformation' principle.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Generally, if Country B is merely a transit point and no significant processing has occurred, then Country A can be declared as the country of origin. However, if Country B has performed extensive processing on the goods, altering their nature, then Country B should be declared.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
It depends on the processing situation. If Country B merely stored the goods briefly without significant changes, the country of origin is still Country A. If the processing in Country B made a big difference to the goods, the country of origin is Country B.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
You can look at the processing technology. If Country B only performed ordinary sorting and arrangement operations, the country of origin is Country A. If the processing in Country B was complex, giving the goods new characteristics, the country of origin is Country B.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
From a value perspective, if the goods' added value after processing in Country B is low, Country A should be declared as the country of origin. If the added value is high, Country B might have to be declared as the country of origin.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Relevant trade agreements should also be consulted. Some agreements have special provisions for determining the country of origin; fill it out according to the agreement's requirements.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
If raw materials from Country A are processed into an entirely new product in Country B, the country of origin is likely Country B. If it essentially still resembles goods from Country A, declare Country A as the country of origin.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Consulting customs is more reliable. Each regional customs authority may have subtle differences in their determination of the country of origin; adhere to their opinion.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
When making a judgment, compare the characteristics, functions, etc., of the goods before and after processing in Country A and Country B. If the change is significant, take Country B as the country of origin. If the change is minor, take Country A as the country of origin.