Substantial Transformation Requirements
Navigating Global Trade, Protecting Your Business.
We assist clients to determine the country of origin of goods – which can be adjusted by a ‘substantial transformation” in a new jurisdiction. A product’s country of origin is its “passport” in international trade. The nationality assigned to a good will determine, inter alia, whether it may be admitted into a given country, the rate of duty to be charged, the applicability of quotas and special assessments (such as antidumping and countervailing duties) and the manner in which the good may be marked and sold. Country of origin may also determine whether a good may be offered in government procurements, whether the good qualifies for special tariff programs, and whether it is subject to politically motivated trade sanctions. Origin determinations also drive the development of trade statistics, which governments use, in turn, to measure and drive international economic policy.