International Trade Resources Podcast Country of Origin Analysis
In this episode of the International Trade Resource Podcast, host Kim Kirkendall chats with Diego Montemayor, a seasoned trade compliance expert with over 15 years of global market experience. They dive deep into the sometimes confusing world of country of origin determination—especially when components are sourced, partially assembled, and finished across multiple jurisdictions. Diego lays out the fundamental tests U.S. Customs relies on, from the “substantial transformation” standard to the complementary value‑based analysis, helping listeners understand when and how a product’s origin truly changes .
Together, Kim and Diego unpack real‑world scenarios—like a 3D scanner whose electronic modules come from China but undergo welding, software installation, and housing assembly in Mexico—to illustrate how technical complexity and percentage‑of‑value calculations interplay in a COO decision. They also explore landmark rulings, including a flashlight case where pre‑configured components failed the transformation test, and the Harley‑Davidson EU dispute over tariff‑avoidance motives.
Wrapping up, Diego shares best practices for shoring up your COO position: from assembling detailed bills of materials and process documentation, to performing rigorous value‑add analyses and seeking advance customs rulings when in doubt. He warns of common pitfalls—over‑reliance on supplier claims, insufficient paperwork, and jurisdictional nuances—that can leave companies exposed to enforcement actions and unexpected duties.
Key Takeaways
- Begin every COO assessment with the substantial‑transformation test; escalate to value‑based analysis when complexity or ambiguity arises
- Maintain a “COO file” with bills of materials, processing step descriptions (e.g., welding, software installation), supplier invoices, and logical rational
- Conduct supplier due diligence and consider binding rulings to lock in your origin position and demonstrate “reasonable care” to customs authorities
Episode Sponsors:
If you liked this episode - Buy Me a Coffee - it’s a great way to help us cover the out of pocket costs. LINK: https://www.buymeacoffee.com/kimkirkendall
Acclime China:
Corporate Services and full Accounting/CPA/Tax for China.
Website: www.intltraderesources.com
Email: intltradepodcast@gmail.com
Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.