Originating goods and preferential goods refer to the origin and trade advantages that certain goods have because of their origin.
What are originating goods?
Originating goods are goods that have been produced or manufactured entirely in the country of origin or whose essential components have been obtained in the country of origin. Originating goods can consist of raw materials, semi-finished goods or finished goods. Determining the country of origin is crucial in order to apply the correct customs status, possible customs preferences or trade agreements.
What are preferential goods?
Preferential goods are goods produced in countries with which the European Union (EU) or other countries have concluded trade agreements or customs preference systems. These goods benefit from reduced or even zero customs duties when imported into the destination market. This depends heavily on the trade agreement or preference system in question. Preferential treatment is intended to promote the economic development of the beneficiary countries and simplify trade between the contracting parties.
How do I benefit from preferences?
In order to benefit from preferential treatments, goods must comply with certain rules of origin and present the corresponding proofs of origin, such as certificates of origin or proof of preference. These documents confirm that the goods meet the requirements of the trade agreement or the customs preference system.
You can find much more information on the origin of goods and preferences directly on the customs website.