Why Is This Complex?

Abstract

Examples on specific Rules of Origin, reduction tables, up-to-date HS codes, and solicitation procedures may have led to the conclusion that preferential treatment is not as easy to obtain as it seems. That is correct. Luckily the information on what it takes to be compliant and to sustain an origin claim is typically available. So, why do origin issues still seem so complex? Because it is difficult to put an origin claim or determination in perspective. Origin issues are intertwined in compliance, cost-benefit analysis, and sourcing options. To make sure all relevant parties make the right decisions and remain compliant is a challenge. Rules of Origin do not exist to make life miserable for exporters or importers, but they exist to make sure that only qualified parties/products benefit from the Free Trade Agreement and there are no Free Riders. That may not make the topic easier to digest but should create understanding. With the benefits so high, it is important to put clear rules in place about how and when companies can qualify for those benefits.