Knowledgebase

Understanding Trade Agreements and Preferences Print

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Reduced duties in some markets.

WHAT THEY ARE

Arrangements between countries reducing or removing duties on qualifying goods.

WHY THEY MATTER

They can make exports competitive that otherwise would not be.

WHAT REGIONAL ARRANGEMENTS EXIST

Agreements covering trade within the region and continent.

WHAT SCHEMES SOME DEVELOPED MARKETS OFFER

Preferential access for goods from certain countries.

WHAT TO ESTABLISH

Whether your product and your country qualify for anything.

WHAT QUALIFICATION USUALLY DEPENDS ON

Rules of origin.

WHAT RULES OF ORIGIN ARE

Requirements about where and how the goods were produced.

WHY THEY EXIST

To prevent goods merely passing through a country claiming its preferences.

WHAT THEY TYPICALLY REQUIRE

Production wholly in the country, or Sufficient transformation there, or A minimum proportion of local content

WHAT TO ESTABLISH

Which rule applies to your product.

WHAT EVIDENCE IS REQUIRED

A certificate of origin, and supporting records.

WHAT RECORDS TO KEEP

Where inputs came from What processing occurred Costs supporting any local content calculation

WHY

Claims are audited, and unsupported claims produce penalties.

WHAT TO DO

Establish the position before claiming anything.

WHERE TO CHECK

The export promotion body and the destination's customs authority.

WHAT TO VERIFY

Current arrangements, which change.


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