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Product origin in international trade has little to do with the country of despatch or even in some cases the country of manufacture but it does have a lot to do with how much import duty and VAT the importer has to pay.
Qualifying for the ‘right’ origin can bring significant reductions in the import duty and VAT payable at import. It can also open the door to the use of the so called ‘Free Trade Agreements’ which not only bring the benefit of reduced import duty and tax but can open up markets that are not available to your competitors.
By controlling origin you can ensure you buy at the best price and capture market share by selling at the best price.
Origin can also be an issue with some countries banning the importation of products or setting excessively high import duties for products of a particular origin. This is a nasty surprise that can be avoided with the right knowledge.
This in depth course covers: