Origin: Non-Preferential - Ruling on "last significant transformation"
The EU has rules that the "binding" non-preferential rules do not apply where they go against the "last, significant transformation" rule. Read details and download the law.
The Court of Justice of the European Union rendered a significant ruling on the EU's "binding" non-preferential rule of origin.
The non-preferential rule of origin, which was once thought to be "binding," is not as binding as previously believed.
The ruling emphasises that the "binding" non-preferential rule of origin of Annex 22-01 UCC-DA is declared illegal if it does not satisfy the requirements of the "last significant change" as stated in Art. 60(2) UCC.
The Court claims that by relying solely on a unique binding "tariff shift rule" to determine the non-preferential origin of the relevant items, the European Commission overreached its implementing powers (see para 58).
The Court held that the most important factor to consider is whether the processing or working alters the basic product in a discernible way.
As previously established under the Community Customs Code, this strengthens the hypothesis (see, for instance, Hoesch Metals and Alloys, C-373/08, and Cousin and Others, C-162/82).
With significant implications for EU non-preferential origin rulings, this judgement represents a turning point.
Link to the whole ruling:
Judgment of the Court of 21 September 2023 in Case C-210/22, Stappert Deutschland GmbH Vs. Hauptzollamt Hannover Re: Reference for a preliminary ruling - Customs Union - Regulation (EU) No 952/2013 - Customs Code of the Union - Article 60(2) - Acquisition of origin of goods - Delegated Regulation (EU) 2015/2446 - Article 32 - Goods in the production of which more than one country or territory is involved - Annex 22-01 - Primary rule applicable to goods falling within subheading 7304 41 of the Harmonised System - Concept of 'hollow section' - 'Tube blanks' of steel falling within subheading 7304 49 of the Harmonised System, obtained by hot forming and enabling the production of steel tubes by cold forming, falling within subheading 7304 41 of the Harmonised System - Validity of the primary rule
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