Matters involving laws, rules, taxes, duties, tariffs, and international trade agreements are rarely simple — and the deeper you dig the less simple they become.
Country of Origin Rules and Regulations are connected to
all of those things mentioned. One of the many complexities is that different rules may be applied depending on the category of product being considered
and the specific type of product within a category.
As one example of just how
specific trade rules can be, let's look at cameras. Why were so many makes and models of
"digital cameras" all programed to stop recording video at 29 minutes, 59 seconds? It appears to be because a
trade agreement (see link for details) classified a camera which could record continuously at 30 minutes or longer as a
"video camera" which could trigger a higher import duty on the camera.
This Country of Origin topic could generate pages of discussion on specific Country of Origin Rules and Regulations — but why should it? What would the purpose be? Isn't it already clear how cameras are produced from many different components from many different sources?
To bring this discussion,
hopefully, to some kind of close; let's broadly explore some of the regulatory rules which may be applied to determine the Country of Origin for a product. One test may be based on the
percentage of value added to a final product as mentioned earlier. S
ubstantial transformation is another test which is also frequently applied to determine Country of Origin.
Some simple examples are given in
this brief document on Substantial Transformation from the U.S. International Trade Commission (USITC). One example given is:
"Sugar from country A, flour from country B, dairy products from country C, and nuts from country D are taken to country E and undergo manufacturing to result in cookies. (The inputs were substantially transformed into a product of country E, in that a new type of goods resulted from processing.)"
Substitute a sensor from Japan for sugar from country a; add electronic components from countries b, c, and d; and change cookies to cameras from country e in the example above and I think you get the general concept at work here.