Tolerance or de minimis
If the rule of origin for your product is not fulfilled, it may still be considered as originating in some cases.
The product can still be considered as satisfying the applicable rule of origin if the value of the non-originating materials does not exceed a threshold specified in each origin protocol. This threshold is usually 10% or 15% of the ex-works price of the product.
If the rule that applies to your product is one of the three rules described in the sufficiently transformed goods section, the tolerance may apply as follows:
- If the ‘change of tariff classification’ rule is applied, the tolerance allows the use of non-originating materials that have the same tariff headings as the final product – provided that the value of these materials does not exceed the tolerance threshold.
- If the ‘manufacture from certain products’ rule is applied, the tolerance allows to use non-originating materials that represent a later stage of production –provided that their value does not exceed the tolerance threshold.
- If the value-added rule is applied, note that you cannot use the tolerance as the threshold for the specific rule of origin – in this case the maximum percentage threshold cannot be exceeded.