What are Rules of Origin and how do they apply to Free Trade Agreements and tariffs?
The Rules of Origin (ROO) are an agreed set of rules
between countries that share a preferential trade
agreement, such as a Free Trade Agreement (FTA). They
determine the criteria for which goods are eligible for
free or preferential import tariffs.
Based on the harmonized system of tariff codes, they
can be quite technical in nature. Typically, they
require a product to be entirely produced in a one of
the participating countries, or have a minimum
percentage of the value produced there.
In order for your goods to receive preferential
treatment under the FTA you will need to demonstrate
that they comply with the rules of origin under the
relevant Agreement. This is done by completing
documentation to demonstrate to the customs
administration in the destination country that your
products will qualify for preferential tariff treatment
under the Agreement.
For more information, speak to your customs broker or visit the Australian
Free Trade Agreement portal.