3. The Meaning of Origin

3.1. Non-Preferential and Preferential Rules of Origin

Non-preferential Rules of Origin

Preferential Rules of Origin

Determines Origin but do not confer any tariff benefits.

Determines which goods enter under preferential treatment at zero or reduced tariff rates.

Used for: quota determination, anti-dumping and countervailing duty calculation, and country-of-origin labeling.

Used for: preferential market access between economies under a trading arrangement (FTAs, customs unions, preference schemes).

Applied on a most-favored-nation (MFN) basis; non-discriminatory.

Discriminatory by design; the donor country’s benefits are restricted to qualifying trading partners.

The WTO is actively developing harmonized rules in this area.

The principal objective is to ensure preferential benefits flow only to selected partners.