What is a Rule of Origin?
A rule of origin is a standard for determining where a product is from, and it can serve a variety of regulatory purposes.
For example:
The “substantial transformation” rule is used by U.S. Customs and Border Protection (CBP) to determine a product’s country of origin for marking and government procurement.
The “tariff shift” approach is used to establish eligibility for tariff preferences under trade agreements such as the United States-Mexico-Canada Agreement (USMCA), Central American Free Trade Agreement (CAFTA), the U.S.-Chile Free Trade Agreement, and other bilateral and multilateral arrangements.
“Buy American” rules identify products that receive a competitive advantage in certain U.S. government procurements.
“Buy America” requirements apply to specific mass transit projects funded by the Federal Transit Administration (FTA).
Proper application of a rule of origin is an essential skill in international trade. Overlooking the correct standard—or applying it incorrectly—can have serious consequences. These may include merchandise being denied entry into the U.S., being subjected to duties instead of qualifying for preferential treatment, or being disqualified from sales to the U.S. government.
Legal Assistance with Rules of Origin
In my view, rules of origin represent one of the most complex and bureaucratic challenges in trade law — and one in which I’ve had repeated success. I’ve assisted clients in navigating nearly every type of origin standard imposed by U.S. government agencies.
My experience includes:
Country of origin marking and trade agreement matters before U.S. Customs and Border Protection (CBP), including USMCA/NAFTA (with a particular focus on automotive issues), CAFTA, and other bilateral agreements.
“Made in U.S.A.” claims regulated by the Federal Trade Commission (FTC).
Buy American and substantial transformation standards for federal procurement.
Buy America provisions tied to funding from the Federal Transit Administration, Federal Highway Administration, and Federal Aviation Administration.
Compliance with Defense Security Cooperation Agency (DSCA) rules for the Foreign Military Financing (FMF) program.
Additionally, I authored the chapter “Rules of Origin for Sales of Products to the United States Government” in the Transnational Contracts treatise — to my knowledge, the only systematic treatment of that specific subject.
Contact me for assistance with Rules of Origin using the form below, or call my office at 202-772-2039.
