Rules of Origin Manager flashcards
Rules of Origin Manager · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Vienna Convention interpretation
- Treaty interpretation rule requiring ordinary meaning of terms in context, in light of object and purpose; preparatory work is supplementary. Applied to resolve ambiguous FTA origin provisions.
- Advance origin ruling
- A binding decision by customs on the origin of specified goods under stated facts, valid for a set period and revocable if facts change or were misstated.
- Kyoto Convention Annex K
- The WTO-adjacent WCO instrument setting harmonized principles for non-preferential origin, including wholly obtained goods and substantial transformation criteria.
- Non-preferential origin purpose
- Determines MFN duty, trade remedies, marking, quotas, and statistics; it is not a claim for FTA preference and requires no proof of origin.
- Substantial transformation test
- Non-preferential criterion requiring a change in tariff classification, or where inconclusive, an ad valorem percentage or specific process in the last country of production.
- Wholly obtained goods
- Goods grown, mined, harvested, or born and raised entirely in one country, with no materials from another country; lists vary slightly by jurisdiction.
- Change of chapter rule
- Product-specific rule requiring all non-originating materials to be classified outside the same HS chapter as the finished good.
- Change of tariff heading
- Rule requiring non-originating materials to be classified in a different four-digit HS heading from the finished good.
- Combined and/or rule
- Product-specific rule joining criteria with 'and' (all must be met) or 'or' (any path qualifies); misreading the connector is a common origin error.
- Tariff shift analysis
- Comparing each non-originating input's HS classification with the finished good to confirm the required chapter, heading, or subheading change is met.
- Build-down RVC formula
- RVC = (value of good minus value of non-originating materials) divided by value of good, multiplied by 100.
- Build-up RVC formula
- RVC = value of originating materials divided by value of good, multiplied by 100; used where non-originating material values are hard to establish.
- Net cost method
- RVC method using net cost, which excludes royalties, shipping, packing, and non-allowable interest, in place of transaction value.
- Value of non-originating materials
- Typically CIF at port of importation or earliest ascertainable price paid in the territory; the agreement's definition controls which measure applies.
- Bilateral cumulation
- Treating originating materials from the other party as originating in the importing party's determination, enabling cross-border sourcing within the agreement.
- Full cumulation
- Cumulation across a group of parties where processing in any member counts toward the rule, not just materials already originating.
- De minimis threshold
- A value or weight limit for non-originating materials that fail the tariff shift; commonly 10 percent but often lower or excluded for textiles.
- Minimal operations
- Packaging, labelling, simple mixing, simple assembly, and affixing marks are listed as insufficient to confer origin under most agreements.
- Origin declaration
- A statement on an invoice or commercial document by an exporter or importer certifying the goods meet the agreement's origin rule, valid for a set period.
- Certificate of origin
- A document issued by an authorized body or exporter confirming the origin of goods, stating the agreement, goods, HS classification, and origin criterion.
- Record retention period
- Typically three to five years after export or import, covering supplier declarations, cost records, and production documents supporting the origin claim.
- Third-party invoicing
- Invoicing by a party other than the exporter, permitted under most FTAs where the goods' origin is unaffected and the proof of origin remains valid.
- Supplier declaration
- A statement from a supplier identifying the material, HS classification, origin criterion, and period covered; blanket versions cover multiple shipments over a term.
- Undetermined origin material
- Material whose origin cannot be established from records; it is treated as non-originating in the RVC calculation until valid evidence is obtained.
- Supplier risk tiering
- Ranking suppliers by spend, material criticality, country risk, and past error rates to prioritize verification and declaration collection.
- Desk verification
- A customs review of documents and written questionnaires without an on-site visit, often the first step before a full origin audit.
- Voluntary disclosure
- Reporting an origin error to customs before an investigation begins, which in many jurisdictions reduces penalties compared with discovery by the authority.
- Post-clearance audit
- Examination of entries, proofs, and cost records after release, which can trigger retroactive duty, interest, and penalties for the limitation period.
- Direct consignment rule
- Requirement that goods be transported directly or through permitted transit without operations other than unloading and preservation in third countries.
- Segregation of duties
- Control principle separating preparation and approval of origin determinations and declarations so no single person controls the full claim.
- Origin repository
- A central, version-controlled store of product-specific rules, bills of materials, supplier declarations, cost calculations, and issued proofs of origin.
- FTA utilization analysis
- Comparing preferential versus MFN rates, compliance cost, and clawback risk to decide whether claiming preference is economically justified.