Understanding Country of Origin in Odoo for Accurate Landed Cost Amid Canada-US Tariffs

Navigating Tariff Challenges with Accurate Country of Origin Tracking

March 7, 2025 by

OERP Canada, Daniel Dico

With the quickly developing trade wars between the US and its neighboring countries, it has left many unsure on how to proceed with imports and exports. One thing remains sure, however you wish to proceed, Odoo can assist your operations!

In response to the newly established tariffs by the governments, understanding the Country of Origin (COO) has become increasingly essential within Odoo. This is primarily because COO plays a pivotal role in determining the overall landed costs associated with the import of goods, which can significantly affect pricing strategies and profit margins for your businesses.

At the same time, this functionality is also valuable for any country imposing tarrfis anywhere in the world. Ensuring that the correct Country of Origin is recorded helps businesses remain compliant and avoid unexpected costs.

With more trade tariffs continuously developing, it is best to know that your system can adapt with your needs.

Table of Content

01.

Why Country of Origin Matters

COO impacts various aspects of international trade, especially when tariffs and trade agreements influence costs. Here’s why it’s essential:

Tariff Classification & Compliance

Goods imported into your country, may be subject to different tariff rates based on their origin. Proper classification ensures compliance and prevents unwarranted fees.

Landed Cost Accuracy

The total cost of goods includes not just the purchase price but also tariffs, duties, shipping, and customs fees. Identifying COO in Odoo allows businesses to factor these in for accurate pricing and profitability calculations.

Customs Documentation & Audits

Incorrectly reported COO can lead to delays and penalties. Having the Certificate of origin (CO) as a form of proof and verification will negate these risks.

Trade Agreement Benefits

Some goods may qualify for preferential treatment under agreements like CUSMA (formerly NAFTA), reducing duty costs when the correct COO is identified.

02.

How Odoo Helps Track Country of Origin & Landing Costs

Odoo’s Inventory & Purchase modules provide a structured way to track Country of Origin and incorporate it into costing workflows.

However, Odoo’s default Country of Origin designation at the product level can sometimes lead to inaccuracies — especially when the product is manufactured in multiple countries by different suppliers. This can result in misleading information about a product’s true origin.

03.

OERP’s Enhanced Country of Origin Tracking

At OERP, we recognized this limitation and have significantly improved the way Country of Origin is managed. We now provide an accurate identification of the country of origin at the time of shipping, allowing users to select using Odoo's standard delivery rules alongside our improvements. This ensures: