Direct Shipment, Transshipment and Imported Directly

Direct Shipment/Transshipment/Imported Directly

There is a direct shipment provision in all of U.S. FTAs. It is listed under “imported directly” or “transshipment” or it is not defined but the following or similar language is included in the FTA. While the language may be different, basically it means that a good that has undergone production necessary to qualify as an originating good under an FTA, it shall NOT be considered to be an originating good if, subsequent to that production, the good:

  • undergoes further production or any other operation outside the territories of the parties to the Agreement, other than unloading, reloading or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a party to the Agreement; or 
  • does not remain under the control of customs authorities in the territory of a country other than a party to the Agreement.

If you have concerns regarding this issue, go to the specific FTA for exact language, see USTR FTAs.