A product is said to be "made" in a location or country based on several factors, which typically relate to the processes involved in its production. Key factors include:
- Substantial Transformation: A product is considered to be made in a country if it undergoes a significant transformation in that location. This means that the product's form, function, or value has substantially changed during manufacturing. For example, assembling raw materials or components into a finished product.
- Origin of Materials or Components: The country where the majority of the raw materials or components used to create the product are sourced can influence the designation. However, this alone may not suffice if the product is assembled or finished elsewhere.
- Assembly and Final Processing: The location where the final assembly or the majority of the manufacturing steps are performed is typically considered the place where the product is made. Even if some parts are imported, the country where the assembly takes place may get credit for being the origin.
- Value Addition: The percentage of value added in a specific country can determine its origin. If a significant portion of the total value of the product is added through labor, manufacturing, or innovation in a particular location, the product may be considered made there.
- Regulations and Trade Agreements: Different countries have varying rules and trade agreements that define what constitutes "made in" for labeling purposes. These regulations often require a certain percentage of the manufacturing process or materials to be sourced locally.
- Customs and Legal Requirements: National customs authorities may have specific rules that determine the country of origin for products for import/export purposes, often using the concept of "substantial transformation" as the key criterion.
In many cases, a combination of these factors is used to determine where a product is said to be "made."
Project and Engineering Manager | Commonwealth Scholar '21|
2 个月There are so many products assembled and commissioned in Nigeria e.g, Generators, tricycles, vehicles, etc, yet these products are said to be made in foreign countries.
Senior Quality Control Analyst at The FMN Group
2 个月In the Pharmaceutical and food industry, where a product is produced (package/assembled) is as important as where the raw materials are sourced and where it would be used/sold ( country of intended use) are all important for regulatory compliance and traceability.
Mechanical Engineer (B.ENG) ||Engineering Project Management||Data Analyst| Transforming Data into Actionable Insights||SDGs||
2 个月All said are Indeed facts!
Supply Chain Management ll Procurement ll Inventory Orientedll
2 个月Fact