What Are Rules Of Origin Features In Trade Agreement

De minimis: provision which allows the use of a small quantity of non-originating materials in the manufacture of the article without affecting its originating status. This provision serves as a relaxation of the rules of origin. It is important to understand the difference between these two categories of rules of origin. Non-preferential rules of origin are considered “non-preferential” because they are applied on a non-preferential basis to determine the country of origin for specific purposes of application in the multilateral trading system. On the other hand, the rules of origin of the free trade agreements and the Generalised System of Preferences (GSP) are considered preferential because they contribute to the determination of the country of origin in order to grant preferential and special treatment to products originating in a Party or a beneficiary country. [6] Appeal: A provision that opens an appeal procedure concerning the determination of origin and the decisions to be transmitted. The WCO administers many important rules of origin conventions, such as the revised Kyoto Accord. It also manages the Harmonized System, which serves as the basis for drawing up tariff plans and determining the origin of goods when applying the “customs jump” rule. The WCO is jointly responsible for the Technical Committee on Rules of Origin. According to Article 4(2) of the WTO Agreement on Rules of Origin, “the Technical Committee is a WTO body but has operated under the auspices of the WCO in accordance with Article 4(2) of the Convention of Origin. Therefore, the WCO Council exercises its oversight of the Technical Committee only on administrative matters. [28] The WCO also publishes a number of guidelines and studies on various aspects of rules of origin, which are very useful for businesses. For example, the WCO Compendium of Origin (2017)[29] and the Comparative Study on Preferential Rules of Origin (2017 version). [30] You can also consult the CBP-FTA comparison table (Origination section), which lists the reference documents where the rules of origin are located.

As part of a joint initiative with the WCO and the WTO, the International Trade Centre is establishing a Rules of Origin Facilitator[31] that provides free and user-friendly access to the ITU database on rules of origin and origin documentation in hundreds of trade agreements. The facilitator is also combined with the huge databases for tariff and trade agreements that have been created and maintained continuously by the ITC Market Access Card since 2006[32], resulting in a unique market information solution that enables businesses, especially those from developing countries, to benefit from trade agreements around the world….

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