CEFTA

Why are rules of origin important?

Rules of origin are crucial for both businesses and governments because they ensure that only eligible products benefit from reduced tariffs or other trade advantages, as well as possible trade restrictions (e.g., sanctions, import prohibitions, etc.). Rules of origin typically safeguard local industries (or those situated in preferential trading partners) and promote local manufacturing by ensuring that imported (non-preferential) products do not take unfair advantage of trade preferences.  

 

In addition, rules of origin enable Customs authorities to enforce and ensure compliance with trade regulations. Understanding and complying with rules of origin is vital for businesses to remain competitive and to navigate the complexities of global supply chains.