Non-Preferential Origin is the country of origin of a good for purposes other than claiming an FTA tariff preference. It is determined by the substantial transformation test under U.S. common law and CBP regulations, except where Congress or CBP has established codified non-preferential rules for specific purposes.
Non-preferential origin governs:
- Country of origin marking under 19 U.S.C. § 1304
- Section 301 China tariffs
- Section 232 steel and aluminum duties
- IEEPA and fentanyl tariffs
- Antidumping and countervailing duty applicability (in most cases)
- Quotas under quantitative restrictions
- MFN (Column 1) versus Column 2 duty rate assignment
- Government procurement under the Trade Agreements Act (some rules diverge)
For USMCA goods, 19 CFR Part 102 sets out codified non-preferential rules using tariff-shift methodology — replacing the case-by-case substantial transformation test for marking purposes (only). The Part 102 rules apply for marking of goods from Canada, Mexico, and Israel, regardless of whether the goods qualify for preferential treatment under the relevant FTA.
For all other goods, non-preferential origin is determined by substantial transformation under common-law precedent (e.g., Anheuser-Busch, Gibson-Thomsen, National Hand Tool).
A good's non-preferential origin can differ from its preferential origin. For example, a USMCA-qualifying good might be substantially transformed in Mexico (Mexican origin for Section 301) but fail USMCA's product-specific rules (no FTA preference). Both determinations are independently required and reported.