Rules of origin
Rules of origin are the criteria that fix the national source of a product, and they matter because duties and restrictions frequently depend on where goods come from.
Official source: WTO | Rules of origin - Technical Information →
Practice varies widely: substantial transformation is universally accepted as the test, but governments implement it through change of tariff classification, an ad valorem percentage or a specified manufacturing or processing operation. Origin is used to apply anti-dumping and safeguard measures, to decide whether most-favoured-nation or preferential treatment applies, and for marking, statistics and government procurement. The WTO Agreement on Rules of Origin binds only non-preferential rules; preferential rules are covered by an annex extending principles such as transparency and non-retroactivity, and members must notify their preferential rules to the Secretariat.
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