How should the country of origin be correctly stated in entrepot trade? Is there an expert who can teach me?
Solved#Entrepot trade#
I've recently been handling entrepot trade transactions and got confused when filling in the country of origin. The goods were purchased from Country A, shipped to Country B for processing, and then transshipped to Country C. Should the country of origin be listed as Country A or B? Also, do different trade terms affect how the country of origin should be stated? Could any professionals help explain what principles should be followed when determining the country of origin in entrepot trade?
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In entrepot trade, the determination of country of origin typically follows the "substantial transformation" principle. If the goods only undergo simple processing in Country B (like sorting or packaging) without substantial changes, the origin should generally be listed as Country A. Substantial transformation refers to situations where processing results in either: 1) a change in tariff classification under the Harmonized System, or 2) meeting certain value-added percentage thresholds. If the goods' tariff classification changes or value-added percentage meets requirements after processing in Country B, the origin should be listed as Country B. Different trade terms (like FOB or CIF) don't directly affect origin determination as they mainly concern transportation, insurance, and risk transfer. Therefore, origin should be accurately determined by comprehensively evaluating processing circumstances according to the "substantial transformation" principle.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally, if Country B only serves as a transit point with minimal processing, the origin should remain Country A. If Country B conducts substantial processing that alters the goods' nature, then Country B should be listed as origin.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
It depends on processing circumstances: if Country B only provides temporary storage without materially changing the goods, the origin stays Country A; if Country B's processing significantly alters the goods, then Country B becomes the origin.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Examine the processing techniques: if Country B only performs basic handling operations, origin is Country A; if Country B's processing is complex enough to impart new characteristics, origin becomes Country B.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
From a value perspective: if processing in Country B adds minimal value, origin remains Country A; with significant value addition, origin likely shifts to Country B.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Also consider relevant trade agreements, as some have special rules for origin determination that should be followed.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If raw materials from Country A are processed into entirely new products in Country B, origin will probably be Country B; if the goods largely retain their original form, origin remains Country A.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Consulting customs authorities is most reliable, as regional customs may have nuanced interpretation differences - their guidance should be final.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
When determining, compare the goods' characteristics and functions before/after processing - significant changes warrant Country B as origin; minor changes maintain Country A as origin.