Rules of origin

Rules of origin
Non-preferential rules of origin
Preferential rules of origin
Binding origin information
Issuing of EUR 1 certificates
Requests for validation
Approved exporters
Gap Analysis
Legal Framework
• The Customs Act No 88/2005
• Articles 7 and 145
• Regulation No 119/2002 on a General System of
Preferences – Tariff Preferences in regard to the
Importation of Products Originating in the
World’s Poorest Developing Countries
Non-Preferential Rules of Origin
• As a member state of EFTA and as a signatory
to the EEA-agreement, Iceland is subject to
the rules therein concerning non-preferential
• There are no rules on a national level on how
to determine non-preferential origin
• Thus far, there has not been reason to apply
rules of non-preferential origin in Iceland
Preferential Rules of Origin
• Art. 145 of the Customs Act
• The Minister is authorized to issue general rules
of origin applicable to importation and
exportation of goods
• General rules of origin have thus far not been
issued in Iceland
Preferential Rules of Origin
• The preferential rules of origin are based on FTAs
Iceland has concluded and the protocols defining
the rules and concepts of originating products,
which are part of those agreements
• The preferential rules of origin therefore depend
on the FTA that is applied in each case
Preferential Rules of Origin
• Art. 7, paragraph 1, of the Customs Act
• Duties shall be reduced, waived or refunded ...
in accordance with provisions of free trade
agreements and international agreements to
which Iceland is a party, from the time the
agreement in question has entered into force
for Iceland
Preferential Rules of Origin
• Art. 7, paragraph 1, of the Customs Act
• Duties on goods originating in the least
developed countries of the world as defined by
the UNCTAD/Committee on Enterprise,
Business Facilitation and Development shall be
waived in conformity to waiving of duties on
goods originating in the European Economic
Area according to the Agreement on the
European Economic Area
Preferential Rules of Origin
• Regulation No 119/2002 – GSP
• Tariff preferences granted to 50 countries
• The regulation has not been updated
according to the UN list of LDCs
• Slight differences between the list of countries
in the regulation and the UN list of LDCs.
• Rules of origin in Annex 4
Preferential Rules of Origin
• The EEA Agreement (1994):
• Unites members of the EU and the three EFTA
EEA states, Iceland, Norway and Liechtenstein
into one single market
• Rules of origin in protocol 4
Preferential Rules of Origin
• FTAs that EFTA has concluded with
countries outside of the EU:
• Canada, Chile, Croatia, Egypt, Israel, Jordan,
Republic of Korea, Lebanon, Macedonia,
Mexico, Morocco, Palestinian Authority,
Singapore, Southern African Customs Union
(SACU), Tunisia and Turkey
Preferential Rules of Origin
• Bilateral FTAs
• European Economic Community (1972)
• Greenland (1985)
• Faroe Islands (2006)
Preferential Rules of Origin
• The basic rules applied for goods in order
to obtain Icelandic origin are:
• wholly obtained products
• sufficiently worked or processed products
• cumulation of origin
Binding Origin Information
• Art. 145 of the Customs Act
• The Director of Customs provides importers,
exporters and parties interested with binding
opinion on the origin of goods. The opinion
shall be provided as soon as possible and not
later than 60 days after the request has been
• Implementing rules on binding opinions on the
origin of goods have not been issued so far
Issuing of EUR 1 Certificates
• EUR 1 certificates are issued in accordance
with protocol 4 to the EEA agreement
• Exporter submits EUR 1 documents and
requests confirmation by the Customs
• Examination of all information and
documentation needed to prove the
products’ status of origin has been
Issuing of EUR 1 Certificates
If anything is missing the exporter is notified and
requested to make amendments
If the product is not solely of Icelandic origin, the
declaration on the back of the EUR 1 declaration
form is compared with the rules of origin in
Protocol 4 or the list of production progress in
those cases where the materials used for the
product did not have origin status according to
the rules of origin
Issuing of EUR 1 Certificates
The document is only to be issued if the
production, according to the declaration, fulfills
the conditions of Protocol 4 and there are no
indications to it not being correct
If there are doubts, further documentation, e.g.
proofs of origin for the materials used, is
requested or the product and the production
methods evaluated
Requests for Validation
Requests for validation of proofs of origin are
handled by requesting the production
documentation from the exporter involved
The import of materials and the distribution of
materials in the country are also subject to
regular surveillance
Requests for Validation
In 2010 The Directorate of Customs sent 1
request for validation and received 25
In 2009 The Directorate sent 8 requests for
validation and received 31 requests
In 2008 The Directorate sent 2 requests for
validation and received 30 requests
Approved Exporters
1. january 2011 - Previous authorizations of
approved exporters were revoked and
exporters made to reapply for authorization
Since then, 112 exporters have been
authorized as approved exporters and 7
applications are pending
Approved Exporters
Authorization is valid for 5 years.
Conditions for authorization:
• Periodic export, at least 24 shipments per year
in average
• Knowledge of the rules of origin found in freetrade agreements
Gap Analysis
• On accession the EEA agreement, agreements
that EFTA has concluded with third countries
and bilateral agreements Iceland has concluded
would be replaced by the preferential
agreements of the EU
Thank you for your