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    Rules of Origin

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    Rasul
    This document provides an overview of rules of origin in international trade agreements. It discusses the historical development of rules of origin, including their inclusion in the GATT and WTO agreements. The key principles for determining rules of origin are outlined, such as wholly obtained goods and last substantial transformation. The document also describes the process of harmonizing rules of origin among WTO members.

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    Rules of Origin

    Uploaded by

    Rasul
    111 views14 pages
    This document provides an overview of rules of origin in international trade agreements. It discusses the historical development of rules of origin, including their inclusion in the GATT and WTO agreements. The key principles for determining rules of origin are outlined, such as wholly obtained goods and last substantial transformation. The document also describes the process of harmonizing rules of origin among WTO members.

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    Rules of Origin PPT

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    This document provides an overview of rules of origin in international trade agreements. It discusses the historical development of rules of origin, including their inclusion in the GATT and WTO agreements. The key principles for determining rules of origin are outlined, such as wholly obtained goods and last substantial transformation. The document also describes the process of harmonizing rules of origin among WTO members.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    111 views14 pages

    Rules of Origin

    Uploaded by

    Rasul
    This document provides an overview of rules of origin in international trade agreements. It discusses the historical development of rules of origin, including their inclusion in the GATT and WTO agreements. The key principles for determining rules of origin are outlined, such as wholly obtained goods and last substantial transformation. The document also describes the process of harmonizing rules of origin among WTO members.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 14
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    The presentation discusses the need for harmonization of rules of origin at the international level due to the wide variety and lack of consistency in rules of origin used by different countries and trade blocs. It also outlines some of the key principles and disciplines governing rules of origin as agreed upon in the WTO Agreement on Rules of Origin.

    There was a wide variety of rules of origin used by different countries for different trade programs and preferential agreements. These included non-preferential national rules, preferential national rules for programs like GSP, and regional rules for free trade areas. The lack of harmonization caused issues, so an agreement was needed to harmonize and introduce common basic disciplines for rules of origin.

    Some of the key principles discussed for determining rules of origin include goods being wholly obtained, undergoing a last substantial transformation such as a change in tariff classification or value-added, and specific manufacturing operations. Criteria like change in tariff heading, value-added percentages, and manufacturing processes are outlined.

    e-ppt-ro-214.

    ppt

    Rules of Origin
    This presentation has been prepared by the Secretariat under its own responsibility. It is for general
    information only and is not intended to affect the rights and obligations of Members.

    World Trade Organization, 2004

    With written permission of the WTO Secretariat, reproduction and use of the material contained in this
    document for non-commercial educational and training purposes is encouraged.

    WTO – Institute for Training and Technical Cooperation,


    Centre William Rappard, 154 Rue de Lausanne, 1211 Geneva 21
    Tel: (41 22) 739 56 31 , Fax: (41 22) 739 57 81
    Why an agreement?
    e-ppt-ro-214.ppt

    ‹ Wide variety of rules


    ‹ non-preferential national rules
    ‹ preferential national rules (e.g. to
    administer the GSP)
    ‹ regional rules (e.g. preferential rules linked
    to the administration of free-trade areas)
    ‹ Serious lack of harmonization at the
    international level
    ‹ Æ to harmonize the rules
    ‹ Æ to introduce common basic disciplines

    2
    Why an agreement?
    e-ppt-ro-214.ppt

    ‹ Importance of rules of origin


    ‹ administration of different regimes
    according to the origin of goods
    ‹ tariffs
    ‹ tariff quotas
    ‹ quantitative restrictions
    ‹ anti-dumping measures
    ‹ sanitary and phytosanitary measures
    ‹ collection of statistical data
    ‹ ...

    3
    Historical Overview
    e-ppt-ro-214.ppt

    ‹ GATT Article IX (marks of origin)


    ‹ does not refer to rules of origin per se
    1974: Kyoto Convention
    1981: Note by the GATT Secretariat
    1982: Ministerial mandate to examine the issue
    under the GATT
    1990: Uruguay Round (ad referendum
    agreement)
    1994: incorporation into the Uruguay Round
    Final Act)

    4
    Coverage
    e-ppt-ro-214.ppt

    ‹ Non-preferential rules of origin


    ‹ preferential rules covered only partially by a
    Common Declaration (Annex II of the
    Agreement)

    5
    Principles
    e-ppt-ro-214.ppt

    ‹ Wholly obtained goods


    ‹ Last substantial transformation
    ‹ change of tariff heading (classification)
    ‹ manufacturing operations and specific rules
    ‹ added value criterion
    ‹ combination of different alternatives

    6
    Wholly obtained goods
    e-ppt-ro-214.ppt

    7
    Last substantial transformation
    e-ppt-ro-214.ppt

    8
    Last substantial transformation
    e-ppt-ro-214.ppt

    ‹ change of tariff heading (classification)

    91.11
    91.01

    91.14

    91.08
    9
    Last substantial transformation
    e-ppt-ro-214.ppt
    ‹ manufacturing operations and specific rules

    10
    Last substantial transformation
    e-ppt-ro-214.ppt
    ‹ added value criterion

    45 %
    20 %

    5%

    30 %
    11
    Harmonization
    e-ppt-ro-214.ppt

    1995: beginning
    ‹ + 3 months: wholly obtained goods
    + minimal operations
    ‹
    ‹ + 12 months: substantial transformation
    ‹ change of classification
    ‹ + 12 months: substantial transformation
    ‹ added value and manufacturing
    operations - specific rules
    ‹ + 9 months: substantial transformation
    ‹ consistency of rules

    1998: Completion of work (in principle !)


    ‹ since then: successive postponements
    12
    Disciplines
    e-ppt-ro-214.ppt

    ‹ Before harmonization
    ‹ clear rules
    ‹ based on a positive standard
    ‹ non-discrimination
    ‹ rules of origin shall not be used as a trade
    policy instrument (with distorting effects)
    ‹ administered in a consistent, uniform and
    reasonable manner
    ‹ judicial review procedure
    ‹ no retroactive application (of changes)
    ‹ (prior) assessments of the origin (valid for 3
    years)
    13
    Disciplines
    e-ppt-ro-214.ppt

    ‹ After harmonization
    ‹ the same as before harmonization, except
    where changes (to be negotiated) are
    necessary
    ‹ application / implementation of results of
    the harmonization programme
    (incorporated into the Agreement as Annex
    III)
    ‹ for preferential rules (Annex II)
    ‹ Common declaration
    ‹ essentially transparency

    14

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