The Origin of Goods and Its Significance in International Trade
02.09. 2026
The origin of goods is not merely a detail on an invoice. In international trade, it can determine whether a company or its customer qualifies for a preferential tariff rate, and thus affect the final cost of the transaction. At the same time, an incorrectly determined origin can have significant financial and legal consequences. Furthermore, the risk does not necessarily arise only at the time of export. An error can occur as early as at the supplier’s end within the EU and only become apparent when the goods are imported into a third country.
The origin of goods is not automatically the same as the country where the goods were manufactured or from which they were shipped. Customs rules distinguish between non-preferential and preferential origin, and for preferential origin, they establish specific rules based, for example, on the origin of the materials used, the manufacturing operations, or the tariff classification of the goods.
Correct determination of origin is therefore important not only for the exporter. Information on origin can be passed along the entire supply chain and serve as the basis for applying a preferential tariff rate upon import into a third country.
Where might a company run into problems?
One of the key documents is the supplier’s declaration, through which the supplier provides the information necessary to determine preferential origin status. If this information is incorrect, the error can be passed down the supply chain. It is therefore important for companies to maintain traceable documentation regarding the origin of goods—from tariff classification and materials used to manufacturing operations and relevant proofs of origin.
The practical impact could be significant. If a subsequent audit reveals that the conditions for preferential origin were not met, preferential treatment may be denied, and the foreign importer may incur an additional customs debt. Incorrect information may also have other legal or contractual consequences.
How can you keep track of the origin of goods?
The origin of goods is also closely linked to tariff classification. A specific commodity code may be decisive in determining the rule of origin. An error in classification can therefore lead to an incorrect determination of origin.
Companies should therefore have a system in place that allows them to trace how the origin of a specific product was determined, what data it was based on, and who provided that data. It is also important to continuously verify supplier declarations and review the origin whenever there is a change in supplier, material, manufacturing process, or tariff classification.
Do you need to better understand the issue of the origin of goods?
Would you like to learn how to correctly determine the origin of goods and how to prepare the necessary documentation for international trade? Don’t miss the seminar taking place on October 8, 2026, in Pilsen.
The event is organized by BIC Plzeň and is intended primarily for employees involved in the import and export of goods within companies , as well as customs brokers who need a better understanding of the context of customs regulations.
You can also find more detailed information on this topic in an article by Marek Reinoha—a consultant and specialist in customs, EU trade, and VAT at REINOHA Consulting.
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