on ensure:

• Legal text is always the starting point
• Notes are applied correctly
• Incomplete goods, sets, and composite goods are analyzed consistently
• Similar goods and fallback logic are used only when required
• Subheading classification mirrors heading logic

This structured approach produces an accurate HTS code, which is essential for applying tariff shift, RVC formulas, de minimis allowances, and other origin mechanisms.

Why Incorrect Classification Leads to Incorrect Origin

If classification is incorrect, several downstream issues can emerge:

• The wrong tariff shift test is applied
• A product is incorrectly treated as non qualifying
• A product is incorrectly treated as qualifying
• RVC formulas are calculated using the wrong inputs
• Verification and audit reviews reveal misalignment between classification and RoO logic

Because RoO rules are precise and legally binding, even small classification errors can alter the qualification outcome.

GRI and BOM Driven Origin Analysis

For manufacturers, exporters, and importers handling Bills of Materials, the relationship between GRI and RoO is critical. Every component in a BOM must be classified correctly for the tariff shift analysis to work. GRI ensures that:

• Materials are classified consistently
• Subcomponents follow the correct heading and subheading sequence
• Composite parts and assemblies are not misclassified
• Kits, sets, and partially completed goods are treated correctly
• The final product code is legally accurate

Only after this structured classification is complete can the origin engine apply the appropriate RoO criteria.

Examples of Where GRI Supports RoO Determinations

Typical scenarios where GRI directly affects RoO outcomes include:

• Electronics assembled from components that fall in multiple headings
• Apparel where the final subheading determines which regional value content rules apply
• Machinery built from mixed materials requiring GRI 3 evaluation
• Goods shipped unassembled where GRI 2(a) determines whether they are considered complete
• Multi item sets where GRI 3(b) essential character impacts origin tests

In all these cases, GRI provides the legal structure that precedes the origin analysis.

GRI Does Not Replace RoO, But It Enables It

GRI resolves classification. RoO resolves origin. They serve different purposes, but origin cannot be determined without classification. GRI ensures that the HTS code used for FTA qualification reflects the correct legal interpretation, which is critical for accurate and audit ready origin decisions.

The Bottom Line

GRI does not determine origin, but it determines the classification on which origin rules depend. By ensuring consistent, legally sound classification across all components and finished goods, GRI supports reliable FTA qualification and prevents errors that can affect duty savings or compliance exposure.

Start a live classification workflow in Trade Insight AI to see how structured GRI logic strengthens FTA origin analysis.