Importer’s Knowledge is a method of claiming preferential tariff treatment under a trade agreement.
Allowing the importer to benefit from a reduced or zero rate of import duty without needing formal proof of origin such as a statement of origin from the exporter.
While this can provide more flexibility, the main issue with using this method is that the compliance requirement on the importer is extensive and can often be difficult to prove if challenged by customs authorities. Importers must hold reliable documentation to support their claim including details of the production process which can be hard to obtain, especially when dealing with third parties.