Managing your Country of Origin

Determining the Country of Origin (COO) is a fundamental step in customs compliance and tariff calculation. The COO identifies where goods were manufactured or produced, rather than the location they were shipped from. Alongside the Harmonized System (HS) code and customs valuation, the COO is one of the key factors in determining the tariff treatment for imported goods.  

For customs purposes, there are two types of origin: Preferential Origin and Non-Preferential Origin.  

• Preferential Origin – This classification applies to goods that qualify for special trade programs, such as Free Trade Agreements (FTAs) or duty exemption programs. When applicable, it allows for reduced or eliminated duty rates on imports. However, preferential origin is only relevant in specific trade agreements for eligible products that qualify. It doesn’t apply to the majority of general imports.  

• Non-Preferential Origin – This classification is used for standard customs entry and determines the tariff treatment and the applicable duty rate. There are many different tariff treatments that customs can apply, and common treatments include general rates, special rates, or Most-Favored Nation (MFN) rates when no special trade arrangements apply. It identifies the actual manufacturing country of the product. Customs authorities rely on non-preferential origin to apply standard duties, taxes, and fees. 

Non-preferential origin is assigned based on strict customs rules that depend upon the number of countries involved in the product’s manufacture. Firstly, if a product is made in only one country and no additional work was done in any other country, origin will be deemed as that one original country.   

When goods involve production in multiple countries, the COO is determined by where they underwent their last substantial transformation—a change transformative and significant enough to result in a new product or a critical stage of manufacturing.  

For example, if a merchant imports jackets from China and attaches patches before selling them in the U.S., the COO remains China because:  

• The patches do not constitute a significant transformation of the original jacket.  

• The product retains its essential character as a jacket.  

• No additional materials or manufacturing processes have altered the fundamental nature of the item. 

Updating your Country of Origin in your App 

You can update the country of origin directly in the Product section of your app once your products have been imported. Either using a bulk editor or individually you can update your products directly in your FlavorCloud App.  

In the Customs Detail section you can select the Country and click Save.  

You can also update the country of origin in a CSV and upload the updated information into the Products Grid. 

1. Download CSV Template: Download the CSV template from the FlavorCloud app. 
2. Edit CSV: Update this template with your product information. Note that the country code needs to be entered as the 2-letter ISO country code to import automatically. More detailed instructions for editing and uploading the product template CSV can be found here.  
3. Upload to FlavorCloud App: Once your CSV is ready, upload it to the FlavorCloud app. 

Support & Troubleshooting 

A failure notification will alert you promptly if you encounter issues like failed uploads, sync errors, or malformed uploads. For instance, if we can only upload 4 out of a larger batch, we’ll notify you that four were successfully uploaded and the rest failed. 

Need further help? Reach out to us at support@flavorcloud.com. We’re here to assist you in navigating these processes and to make your cross-border trade experience with FlavorCloud a breeze!