From CO to Melting CountryHow Origin Determination Affects Tariff Risk

In international trade for machining and metal parts, the most familiar question used to be:“Where is this product made?”

But in recent years, more and more customers and customs/brokers have started asking a deeper sourcing question:

“Where was the raw material melted?”

In other words, the focus is shifting from Made in to Melted in.This change reflects a broader trend: attention is moving from “where the product was processed or assembled” to “where the raw material originally came from.”

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1. What Is a CO, and What Problem Does It Solve?

A CO (Certificate of Origin) is an official document used to prove the “nationality” of goods.

Its determination logic focuses on processing and value-added activities—meaning whether the product underwent sufficient processing in a country to be considered a substantial transformation there.

In practice, a CO is most often used to:

• Apply for preferential tariffs under Free Trade Agreements (FTA)

• Serve as a required document for import/export customs clearance

• Support trade policies and regulatory control measures in different countries

In short, a CO solves the question:“Which country is this product considered to be made in?”

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2. What Is the Melting Country, and Why Is It Getting More Attention Now?

The Melting Country (also commonly referred to as the Country of Melt and Pour) means the country where the metal raw material was first melted and poured/cast into its original form.。

This concept focuses not on downstream processing, but on upstream sources—such as the original steel mill or aluminum smelter. Even if the material is later drawn, cut, machined, or surface-treated in other countries, the melting country typically does not change.

This question is being asked more frequently in recent years mainly because:

• Governments are tightening controls against “origin washing” and tariff circumvention

• Metal raw materials are viewed as higher-risk or highly monitored items

• Tariff and compliance reviews are increasingly tracing upstream to the earliest supply-chain source

Simply put, the melting country answers:“Where did the raw material originally come from?”

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3. Why a CO Alone Is Not Always Enough Anymore

In the past, as long as a CO was valid, most shipments could clear customs smoothly.

But the trend today is:

• A valid CO does not always mean there is no tariff or compliance risk

• Raw material origin is increasingly becoming another key review point

Especially for steel, aluminum, fasteners, and metal parts: even if a product is processed in a country and obtains that country’s CO, if the raw material’s melting country is associated with a high-risk region, the shipment may still be flagged—leading to additional documentation requests, inspections, or higher tariff costs.

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4. CO vs. Melting Country — Comparison Table

Comparison Item	Certificate of Origin (CO)	Melting Country
Core Focus	Final processing and value-added activities	Original melting and casting of raw material
Determination Logic	Whether it meets substantial transformation	Melting country typically doesn’t change with downstream processing
Common Documents	CO	MTR (Material Test Report)
Main Purpose	Preferential tariffs, general customs clearance	Tariff risk control, upstream traceability
Where It’s Focused	Processing plant / assembly stage	Steel mill / aluminum smelter
Origin-washing risk	Relatively higher	Very difficult to circumvent
Practical Challenges	Rule differences, document application	Obtaining MTR and batch/lot control

That’s why more customers now request CO + MTR (including melting country information) together.

--- 5. Practical Example: Why a Shipment Can Have a Valid CO but Still Be Asked About Melting Country

Here’s a common scenario in machining supply chains:

• Parts are processed and formed in Country A

• The CO legally states the product origin as Country A

• But the steel used was actually melted in Country B

Under certain trade policies or audit situations, even if the CO is fully valid, the importer may still be required to provide melting country information to confirm whether the raw material originates from a monitored or restricted source.

In such cases, if you cannot provide a clear, traceable MTR (Material Test Report), the most common outcome is not immediate rejection—but customs delays, document requests, and an increased risk of future audits.

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6. The Two Most Common Failure Points in Practice

(1) Incomplete or unavailable original MTR

Some intermediaries refuse to provide the full steel mill MTR, making the melting country impossible to verify.

(2) Material mixing and unclear batch/lot management

If materials from different melting countries are used and mixed, it becomes very difficult to clearly explain the raw material source for the entire shipment.

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7. How Machining Suppliers Can Respond

Not every order requires melting country proof—but preparing in advance can greatly reduce last-minute risk.

Recommended actions:

• Clearly separate incoming materials by origin and batch/lot

• Ensure each batch corresponds to one complete set of MTR documents

• Confirm before shipment whether the customer requires CO only, or CO + melting country

• Prepare documents based on one core principle: traceability

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8. Why Choose Sheng Fong Precision?

In real-world cases, the challenge is often not “Do you have documents?” but:“Which level is the customer actually asking about?”

Sheng Fong Precision can help you:

• Clarify whether the customer needs CO or melting country information

• Review whether your MTR is properly traceable

• Reduce customs delays and tariff risk

• Provide hardware parts and substitution solutions that meet international requirements

📩 LINE: @s9000 Feel free to reach out—we’ll help you clearly understand the practical differences between product origin and raw material origin.

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