You are able to claim Preferential Origin on goods from certain countries that have fulfilled certain criteria. In order to gain preferential, the criteria generally requires that the goods be completely manufactured or have changed dramatically during the manufacturing stage within the manufacturing country.
Preferential origin allows reduced or zero rate duty on goods traded between countries which have an agreement in place or where one side has granted it autonomously.
Goods must fulfil the relevant conditions to obtain preferential origin laid out in the origin protocol to the agreement of whichever country is concerned. In other words, it means that goods must either be manufactured from raw materials or components which have been grown/produced in the beneficiary country. If that isn’t the case the goods must have at least undergone a specific amount of change in the beneficiary country. Goods such as this are considered ‘originating’.
In every case there is a list of the working or the process each manufactured products from non-originating materials or components must undergo to be able to obtain originating status. These rules can be referred to as ‘the list rules’. These rules highlight the least amount of working or processing required on non-originating materials in order to obtain originated status for the resulting goods.