German industry would like to see tariffs cut to zero on all industrial goods, with the exception of sugar and products with high sugar content. Simplifying rules of origin is a second core concern. Rules of origin determine the “nationality” of the product and are the precondition for claiming preferential tariffs. Currently the process is too complicated, making preferential tariffs increasingly unattractive for businesses. Applying rules of origin causes great bureaucratic expense and compliance costs. In the TTIP talks the BDI is calling for simplified rules and a cross-sectoral approach.