U.S.-Colombia Trade Promotion Agreement (TPA)
Rules of Origin
Step 3: Identify the Rule of Origin under U.S.-Colombia TPA
The rules of origin define which products qualify for the FTA-negotiated preferential tariff rate (FTA rate) under the U.S.-Colombia TPA.
Broadly speaking, products that are originating in either the United States or Colombia are eligible for the FTA rate – although only the Colombian Customs Service can definitively make a determination about FTA eligibilityfor imports into Colombia. A product is originating under the U.S.-Colombia TPA if it is a) wholly obtained or produced entirely in the United States or Colombia, b) produced entirely in the United States and Colombia and each of the non-originating materials (inputs) that are part of the good (product) being exported have met the relevant product-specific rule of origin; or c) produced entirely in the U.S. or Colombia from originating materials (inputs). A simplistic illustration of this might be a wooden bowl, which to be originating could be a) made in the United States from U.S. wood; b) made in the United States from Argentine wood, but because the wood has been transformed into a bowl, it now meets the rule of origin for a bowl; or c) made in the United States from Colombian wood.
Product specific rules are listed by HS Code in Annex 4.1 of the Agreement or according to Chapter 3, Article 3.3 (textiles and apparel). If your product is produced in the United States or Colombia and contains non-originating inputs (non-US and non-Colombian content, including content from an unknown origin), you will need to look at the specific rule of origin for your product to determine whether it is originating under the U.S.-Colombia TPA. There is a limited de minimis exception (Chapter 4, Article 4.6) available for most products where the non-originating inputs do not exceed 10 percent of the adjusted value of the product. However, there are restrictions on this exception for various agricultural products and a different rule applies for textiles and apparel products (Article 3.3.8 and 3.3.9).
Although rules of origin under the U.S.-Colombia TPA differ by product, they typically fall within three general categories, consisting of:
1) A change in tariff classification (tariff-shift); or
2) A regional value-content requirement (RVC); or
3) A combination of change in tariff classification and regional value content.
Note: The information presented on this website is meant to serve as a general guide. Only the agreement text and the customs regulations issued to implement the agreement are definitive. For complex issues or where interpretation is required, U.S. exporters should seek legal assistance.