It is possible to use non-originating product in the manufacture of a finished product and still assign it the status of originating product. How much is approved is stipulated in the rules of origin for the finished product. The quantity permitted in the EEA Agreement is 10 percent.
| Note: An update of this article is pending. Please note that some terms and/or references may differ from the Movement of Goods Act and the Customs Duty Act that enters into force from the 1st of January 2023. |
This is what we call the Tolerance Rule. These 10 percent must be subject to a production process during the production of the finished product.
Note that a distributor or other parties which are not engaged in production may never take advantage of the Tolerance Rule
These two points need to be taken into consideration when the Tolerance Rule is applied.