Trade Agreements/Preferential Duty Programs

Why is it important to apply origin rules correctly?

An erroneous application of the country of origin rules under a specific trade agreement can have disastrous consequences for the parties involved in the transaction. For example, merchandise marked with the incorrect country of origin may be subject to seizure of an assessment of supplemental marking duties. The Customs Service may also impose substantial monetary or criminal penalties against the importer if Customs suspects that the importer purposefully obscured, removed, or altered the country of origin mark. Finally, the Trademark Act of 1946 prohibits the importation of articles of foreign origin, which display a name or mark intended to persuade the public to believe that an imported product was manufactured in the United States or in "any foreign country or locality other than the country of locality in which it was in fact manufactured." An article imported in violation of this statute may be detained, seized, or forfeited.

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