Country of Origin
AETIC Country of Origin 22 September 2008
by Hans Driessen Océ-Technologies B.V. Netherlands
Content
1. Rules of Origin in WTO
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Legal Framework
The Harmonization program
2. Rules of Origin in WCO
3. Rules of Origin in EU
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Rules of Origin
Legal Framework
GSP, incl. cumulation
4. Rules of Origin and Trade
5. Exercises and reviews
2
Negative statement
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A Country of Origin (CoO) is NOT:
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Where Purchasing bought the goods (but could be)
Country where the vendor’s head-office is based (maybe)
Country where the purchase is paid (sometimes)
If two countries of origin: the one where we buy most (hm..)
Where the goods are shipped from (more likely)
Where the product is made (coming closer!!)
If not all of these: then what determines the CoO?
To be able to determine the proper CoO, rules have been
issued, hereafter referred to as:
Rules of Origin (RoO)
3
AETIC Rules of Origin September 2008
WORLD TRADE
ORGANIZATION
Part 1
WTO and Rules of Origin
4
AETIC Rules of Origin September 2008
WORLD TRADE
ORGANIZATION
Legal framework

Part of the Marrakesh declaration of 15 April 1994 that
concluded the Uruguay Round (GATT)
 GATT provided no RoO provisions
 Agreement establishing the World Trade Organization
 The agreements included 4 annexes.
 Annex 1A (part of Annex 1 that consist of part A,B and
C) is the Multilateral Agreement on Trade in Goods
 Agreement on Rules of Origin (RoO hereafter) is one of
the 13 agreements of Annex 1A
5
AETIC Rules of Origin September 2008
WORLD TRADE
ORGANIZATION
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Why NPRoO?
Used in non-preferential commercial policy
instruments:
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Most favoured nation treatment
Anti Dumping and Countervailing duties
Safeguard measures
Origin Marking
Discriminatory quantitative restrictions (tariff quotas)
Government Procurement
Trade statistics
6
AETIC Rules of Origin September 2008
WORLD TRADE
ORGANIZATION
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Harmonization Work program
Part IV of the agreement states:
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The Ministerial Conference shall undertake a harmonization
work program, in conjunction with CCC (WCO) in order to
provide more certainty for world trade
The Ministerial Conference will also set a time-frame for the
entry into force
Harmonization work to be completed by The Committee on
Rules of Origin (CRO) and the Technical Committee on
RoO (TCRO). The TCRO is under auspices of the CCC.
TCRO advices the Committee on technical matters.
The CCC secretariat shall act as the secretariat to the TC
7
AETIC Rules of Origin September 2008
WORLD TRADE
ORGANIZATION
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Harmonization Work Program (HWP) NPRoO:
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Harmonization Work program
Coherent rules concerning origin determination
Be objective, understandable and predictable
Be administrable in a consistent, uniform, impartial and
reasonable matter and
Be coherent and based upon positive standard
Will come back on this in WCO part
8
AETIC Rules of Origin September 2008
WORLD TRADE
ORGANIZATION
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Rules presented at heading level (4 digits)
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Rules CTH - CTSH
For a whole heading:
 CTH Change to this heading from any other heading
For a split heading
 CTHS Change to this split heading from any other split of this
heading or any other heading
Rules presented at subheading level (6 digits)
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For a whole subheading
 CTSH Change to this subheading from any other subheading or from
any other heading
 CTH
For a split subheading
 CTSHS to this split subheading from any other split of this
subheading, or any other subheading or heading
 CTSH and CTH
9
AETIC Rules of Origin September 2008
WORLD TRADE
ORGANIZATION
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Preferential RoO
Common Declaration with regard to preferential RoO in
Annex II to the Agreement.
Preferential RoO shall be defined as those laws,
regulations and administrative determinations of general
application applied by any Member to determine whether
goods qualify for preferential treatment under contractual
or autonomous trade regimes leading to granting of tariff
preferences going beyond the application of paragraph 1
of Article I of GATT 1994
(Art 1 = Most Favoured Nation treatment)
10
AETIC Rules of Origin September 2008
WORLD TRADE
ORGANIZATION
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Preferential RoO
Members agree to ensure that rules and exceptions are
clearly given for CTC, Ad Valorum percentage and
Manufacturing.
Rules must be based on a positive standard (What does
confer origin and not what doesn’t)
Rules must be published
Other rules how to deal with preferential RoO
Setting Rules for Preferential Origin is between trading
parties (FTA’s, GSP etc.)
11
AETIC Rules of Origin September 2008
Status 2008
WORLD TRADE
ORGANIZATION
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Conclusion after 14 years:
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The harmonization work for NPRoO is NOT completed
As a result it is not a compulsory law or instrument for
WTO members
As a result EU adopted its own NPRoO
Not only within the EU, but also in other countries (US)
Risk of proliferation of rules: uncertainty for Trade
Special risk for BRIC: large emerging markets and new
WTO members: rules with high protectionism
(BRIC = Brazil, Russia, India and China)
12
AETIC Rules of Origin September 2008
Part 2
WCO and Rules of Origin
13
AETIC Rules of Origin September 2008
WCO in Brief
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174 members (Last update August 2008)
Founded in 1950 in Brussels as the Customs Co-operation
Council (CCC).
First inaugural session in January 1953 with 17 founding
members
1994 Adopted the informal name “World Customs
Organization”
Secretary General: Michel Danet (As of January 2009 Kunio
Mikuriya from Japan)
Director, WCO Tariff and Trade Affairs: Mr. Antoine Manga
Massina
14
AETIC Rules of Origin September 2008
What are they doing
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Objective: to secure the highest degree of harmony and
uniformity in Customs systems
 Activities:
1.
2.
3.
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Collection of Revenues
Application of Trade Regimes
Protection of Society
WCO operates through Committees, such as
1.
2.
3.
4.
Harmonized System Committee (HS)
Technical Committee on Customs Valuation
Technical Committee on Rules of Origin (TCRO)
Other
15
AETIC Rules of Origin September 2008
The Basics
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Three pillars:
1. Tariff Classification (Harmonized Tariff Schedule)
2. Value (Art VII of GATT 1994)
3. Origin (WTO Agreement on RoO)
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Non-preferential
Preferential
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Or, somewhat more simplified: Which goods at which
value coming from where would you like to import?
 Three pillars always needed for importation
16
AETIC Rules of Origin September 2008
TCRoO
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Technical Committee on Rules of origin:
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Established by WCO to support the technical work (RoO per HTS
heading, legal text etc.)
Training seminars (Look at WCO Premia website for info)
Develop manuals and guides
Certification and verification (“law enforcement”)
Revise, once established.
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RoO drafted, based upon the HS 1996, to be aligned with the
2002 version.
 Meanwhile the HS 2007 is implemented. Things are getting
more complex, or, positively, some alignment work still to be
completed, pending a WTO approval
17
AETIC Rules of Origin September 2008
HWP
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Status February 2008:
Consolidated text of NPRoO drafted.
For all headings product specific rules have been compiled
Some General Rules and product specific rules for chapters
84-90 have not yet been endorsed by the Committee
Co-equal rule proposed for chapters 84-90 as a compromise
Compromise rejected (lot of resistance from Trade as well!!)
No consensus reached. Committee is seeking further guidance
from WTO Council for Trade in Goods.
WTO Draft NPRoO 2007
18
AETIC Rules of Origin September 2008
HWP
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Definitions
 General Rules
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GR 1: References made to the Harmonized System
GR 2: Determination of origin
GR 3: Neutral elements (excluding elements which do not
remain in the goods (power, fuel, equipment etc.)
GR 4: Packing
GR 5: Accessories, spare parts and tools
GR 6: Minimal operations and processes
2 Appendices
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Appendix 1: Definitions of Wholly Obtained Goods
Appendix 2: Product Specific Rules of Origin (with 6 rules and
heading provisions)
19
AETIC Rules of Origin September 2008
HWP
Appendix 2:
 Only if Appendix 1 (Wholly obtained) cannot be used
 Based upon 6 standard rules
 Rule 1and 3 mention primary rules (column 3 and 4) and
residual rules.
 When a good is processed with articles from the same
subheading, origin will be determined as indicated in the
applicable residual rule specified at chapter level.
 See examples next pages
20
AETIC Rules of Origin September 2008
HWP
CHAPTER 92 (Example)
Note:
A. Primary Rules for Chapters 92 applicable to primary rules
contained in Column (3)
1. Limitations on change in classification rules in the matrix.- Where
satisfaction of the rules of this Chapter results solely from the
following circumstances, origin shall be determined as indicated
herein:
Goods obtained by disassembly
A change of classification which results from the disassembly of
goods shall not be considered as the change required by the rule set
forth in the matrix. The country of origin of the parts recovered from
the goods shall be the country where the parts are recovered, unless
the importer, exporter or any person with a justifiable cause to
determine the origin of parts demonstrates another country of origin
on the basis of verifiable evidence such as origin marks on the part
itself or documents. More………………
21
AETIC Rules of Origin September 2008
HWP
B. Residual Rules for Chapters 92 applicable to rules contained in
Column (3)
For purposes of Rule 3(d) of Appendix 2 the following residual rules
shall be applied in sequence:
1. For goods classifiable under provisions for “parts” or “parts and
accessories” and which are not described by name, the country of
origin shall be the country of assembly provided the goods are
produced by the assembly of two or more parts (other than parts of
general use, as defined in Note 2 to Section XV or similar parts of
plastic (Chapter 39)), and one or more of the parts (other than parts
of general use, as defined in Note 2 to Section XV or similar parts of
plastic (Chapter 39)) satisfies the requirements for origin in the
country of assembly. For purposes of this rule, the following parts
shall not be counted nor shall the operations described be deemed to
be origin conferring operations:
(a) the attachment of machinery to a base;….. More………..
22
AETIC Rules of Origin September 2008
HWP Example printers
HS Code
number
Description of goods
(1)
(2)
Origin Criteria
(3)
84.71
Automatic data processing machines and units As specified for subheadings and
thereof; magnetic or optical readers, machines split subheadings
for transcribing data onto data media in coded
form and machines for processing such data,
not elsewhere specified or included.
8471.60
- Input or output units, whether or not containing
storage units in the same housing
(4)
45% value-added rule
CTH
(see legal note)
23
AETIC Rules of Origin September 2008
HWP Example Copiers
HS Code
number
(1)
Description of goods
Origin Criteria
(2)
Chapter 90
Optical, photographic, cinematographic,
measuring, checking, precision, medical or
surgical instruments and apparatus; parts
and accessories thereof
90.09
Photo-copying apparatus incorporating an
optical system or of the contact type and
thermo-copying apparatus.
(3)
As specified for subheadings and
split subheadings
(4)
CTH; or 35% value added rule
- Electrostatic photo-copying apparatus:
9009.11
- Operating by reproducing the original image
directly onto the copy (direct process)
CTSH
9009.12
-- Operating by reproducing the original image via
an intermediate onto the copy (indirect
process)
CTSH
- Other photo-copying apparatus:
9009.21
-- Incorporating an optical system
CTSH
9009.22
-- Of the contact type
CTSH
24
AETIC Rules of Origin September 2008
HWP: Conclusions
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HWP still ongoing thing. also given recent HTS updates
Further co-operation WCO-WTO
WCO still law-enforcement function
Mutual support in case of audits
More involvement in preferential rules (technicalities, lawenforcement) due to a manifold of RoO
Task HWP to be embedded in law: see Agreement on
RoO
25
AETIC Rules of Origin September 2008
Preferential Origin
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Rules must be stricter: Example for TV sets:
 NPRoO 45% value add in last substantial transformation
 Pref RoO: 60% value add in country of manufacture: nonoriginating not to exceed 40%)
26
AETIC Rules of Origin September 2008
Preferential Origin
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Main differences NPRoO and Pref RoO
1. Tariff Change
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2.
Value Add
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3.
NPRoO: CTH
Pref RoO: All others are possible (CTH, CTSH etc.)
NPRoO: Value of non-originating materials must not exceed
“N” % of the ex-factory price
Pref RoO: Working and parts value of one particular country
Processing Rule:
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NPRoO: Usually same rule for both.
Pref RoO: same
27
AETIC Rules of Origin September 2008
Preferential Origin
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Other differences NPRoO and Pref RoO
 NPRoO just one list of insufficient operations: pref RoO
varies per Protocol or Agreement
 NPRoO does not know cumulation
 NPRoO does not know a direct transport rule
 NPRoO does not know a “no drawback” rule
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Or
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Preferential rules obviously more strict which is according
the WTO Agreement on Rules of origin.
28
AETIC Rules of Origin September 2008
Part 3
EU and Rules of Origin
29
AETIC Rules of Origin September 2008
EU
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The EU has an internal market with no borders and free
circulation of goods, money, people and services,
hereafter referred to as “EU”
30
AETIC Rules of Origin September 2008
Legal Framework
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EU Regulation 2913/92 articles 22-26
Implementation Provision (EU) 2454/93 art. 66-123 CCIP
Annex 9, 10 and 11 of (EU) 2454/93 CCIP
EU 450/2008 (Modernized Customs Code) will replace
2913/92
Rules of Origin under articles 35-39
New Implementation Provision (CCIP)
Various Protocols
31
AETIC Rules of Origin September 2008
Origin and Provenance
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Often confused by non-trading specialists (e.g. Purchasing)
Provenance:
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Position of goods as far as duties are concerned:
 In Free EU circulation (T2 goods)
 Not (yet) in Free EU circulation (T1 goods)
Statistical term: last place where the goods have been shipped from
before entering the EU
So goods are of EU provenance only if they are:
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Wholly obtained
Imported in the EU (including payment of duties and no drawback
32
AETIC Rules of Origin September 2008
Legal Framework
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Art. 22 describe non-preferential rules for:
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Art. 23:
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Applying the Customs Tariff of the European Communities
Applying measures, other then tariff
How to deal with origin documentation
Describes the criteria used for “ Wholly obtained or produced”
Art. 24:
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Describes “ more than one country” or a further definition of “last
substantial transformation” The last substantial economically
justified processing or working should be in an undertaking,
equipped for that purpose and result in a new product or represent
an imported stage of manufacture
33
AETIC Rules of Origin September 2008
Legal Framework
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Art. 25:
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Art. 26:
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A specific clause that any special action with the intent to
circumvent these rules shall not confer origin
That a document must be produced
Customs authorities may require additional proof, should they
require so.
Specific criteria on textiles (See articles 36-38 and Annex 9
and 10 of the CCIP)
34
AETIC Rules of Origin September 2008
Legal Framework
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Regulations within CCIP:
Art. 35-40
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Art. 41-46
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Specific provisions on origin relating to accessories, spare parts and
tools as part of the standard equipment of machines
Art. 47-54
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Specific provisions for applying the rule of last substantial
transformation
Provisions relating to Certificates of origin
Art. 55-65
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Specific provisions to certificates for Agricultural.
35
AETIC Rules of Origin September 2008
Legal Framework
Country of Origin within EU is defined as:
1.
2.
Where the goods have been wholly obtained, or
When more than one country is concerned, the country
where:
 the final process of manufacture took place
 sufficient working or processing was carried out, or
 the last substantial working or processing was performed
all resulting in the manufacture of a new product
36
AETIC Rules of Origin September 2008
Legal Framework US
NPRoO in the US can be divided into:
1. Rules for origin marking
 US Tariff Act (Chapter 4 Tariff Act of 1930 - Title 19 Customs
Duties)
FTC (Federal Trade Commission) protecting rights of
consumers
2. Rules for the enforcement of quantitative restrictions on
importation of textile products
3. Trade related measures: Imports and import quota’s
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Totally different set-up than the EU ones: e.g. EU no
marking requirements
37
AETIC Rules of Origin September 2008
Legal Framework
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The CCIP (Customs Code Implementation Provisions)
refers to 3 Annexes:
Annex 9: Introductory notes to Annex 10 and 11
Annex 10: Textiles and Textile articles falling within
section XI of the EC Nomenclature
Annex 11: All other products
Both Annex 10 and 11 have three columns
38
AETIC Rules of Origin September 2008
Legal Framework
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How the Annexes work:
Column 1: The Code of the Combined Nomenclature
Column 2: A description of the Product
Column 3: Working or processing to be carried out of the
non-originating material
“ex” in column 1 means: Only for products as described
(limitation)
“several headings grouped” means: all products
concerned
39
AETIC Rules of Origin September 2008
“No Drawback”
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Only at preferential RoO
Imported non-EU articles subjected to Import duties
Articles transformed into new product
New product exported to EUR-1 country
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Either use of system of refund of duties (through inward
processing relief)
Or, alternatively
Use of preferential system (EUR-1).
Then: No refund or NO DRAW BACK (of duties)
40
AETIC Rules of Origin September 2008
Preferential origin
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3 Types of Preferential Origin:
1. Agreement between EU and one or more 3rd countries
Origin rules in Protocol as annex to each Agreement
2. Autonomous arrangements
Agreements unilateral for developing countries (GSP)
Origin rules in a regulation, part if CCIP (see art 66-97)
3. Mixed schemes: Combination FTA and Customs Union
(Turkey). As long as Duties in EU are paid, you may ship
under ATR
Origin rules in EU-Turkey Association Council
41
AETIC Rules of Origin September 2008
Preferential origin
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How is a protocol build up?
1.
2.
3.
4.
Origin rules
Direct Transport
Documentation and proof of origin
Mutual support arrangements to verify origins
42
AETIC Rules of Origin September 2008
Preferential origin
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Standard criteria for acquiring origin status in EU:
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Territoriality principle in manufacturing operations:
Factory must be within the EU: If a product consists of 99%
EU parts, but is located outside EU: No EU origin
Territory described in article 3 CCC
For preferential Origin EU is one territory but not recognized
as a country
Proof of origin to be supported by long term supplier
declaration (valid maximum 1 year) or a single declaration
on supplier’s invoice
43
AETIC Rules of Origin September 2008
Preferential origin
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Same two principles to determine preferential CoO:
1.
2.
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Wholly obtained
Sufficiently worked on or processed (NOT the last
substantial transformation as NPRoO)
Wholly obtained pretty clear
Worked or processed: Conditions of Protocol or
Regulation must be met. Although some shared
principles, protocols do vary!!
Also always a list of insufficient operations in each
Protocol or Agreement. They never confer origin
44
AETIC Rules of Origin September 2008
Preferential
Agreements
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Unilateral:
 GSP: General System of Preferences (for Least developed
countries) - just recently renewed
 Bilateral:
 EU - Mexico
 Multilateral:
 Nafta
 EAR (European Economic Area)
Note: EU puts much effort in establishing more FTA’s, such as
Korea, India, Asean, others.
45
AETIC Rules of Origin September 2008
GSP
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Unilateral system of granting preferences by the
Community (donor countries) to products from developing
countries (beneficiary countries).
Countries listed in Appendix 1 of EU of GSP Regulations
Agreed at UNCTAD (UN Conference on Trade and
Development)
Legal framework Articles 66 to 97 of the CCIP 2454/93 as
well as Annexes 14 to 18 and 21.
List rules in Annex 15 CCIP as amended by
(EC) 980/2005
46
AETIC Rules of Origin September 2008
GSP
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Goods covered are all products of Chapter 25 to 97 of
the CN that are subject to duties upon entry in the EU
Chapters 1-24 (Agricultural products) limited.
Conditions:
1.
2.
3.
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The goods must originate in a beneficiary country
The goods must be transported directly
Valid proof of origin issued by competent authority. Usually
this is a Form A or invoice declaration.
Note that different RoO apply for all GSP agreements,
e.g. those of the EU and US differ!
47
AETIC Rules of Origin September 2008
GSP
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The GSP regulation for the period to 31/12/2008 is
Council Regulation (EC) No. 980/2005
Reform is work in process and a important part is a
possible relaxation of the RoO. To date nothing has
changed although the new GSP scheme is released.
However, the old RoO still apply
Annexes work similar as the ones in the Combined
Nomenclature mentioned previously.
Only difference is a column four. It is up to the exporter to
choose which of the two criteria he will use.
48
AETIC Rules of Origin September 2008
GSP
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Two rules of Origin:
1. Wholly obtained
2. Goods from more than one country must have sufficiently worked
or processed there. Three options:
2.1
Change of HS tariff Heading
2.2
Value Percentage
2.3
Specific Process
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What is sufficient is specified in Annex 14 (explanation)
and annex 15 (List of working or processing)
Some minor operations will never confer origin (listed in
article 70)
All rules apply on the non-originating materials only
49
AETIC Rules of Origin September 2008
GSP
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CTH: A product is sufficiently worked or processed if can
be classified in a different 4-digit heading of the Combined
Nomenclature which is different from those in which all the
non-originating materials used are classified.
Value, or ad-valorem criterion: the value of the nonoriginating materials may not exceed a given percentage of
the ex-works price. Both “Value” and “ex-works” are
defined in article 66.
Specific process criterion: When certain operations or
stages in a manufacturing process have to be carried out
on the non-originating materials
50
AETIC Rules of Origin September 2008
GSP
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CTH: A product is sufficiently worked or processed if can
be classified in a different 4-digit heading of the Combined
Nomenclature which is different from those in which all the
non-originating materials used are classified.
Example:
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Straw baskets are classified in 46.02
All materials used are classified within a heading other than that of
the product (remember: the non-originating materials only!!)
As straw is classified in heading 14.01, the criterion is satisfied
Note: The examples are directly taken from the EU site
51
AETIC Rules of Origin September 2008
GSP
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Value, or ad-valorem criterion: the value of the nonoriginating materials may not exceed a given percentage of
the ex-works price. Both “Value” and “ex-works” are
defined in article 66.
Example:
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Umbrellas are in heading 66.01
Column three states that the value of all the materials used does not
exceed 50% of the ex-works price.
After calculation (note the definitions in art. 66!!) it can be checked if
the criterion is satisfied
52
AETIC Rules of Origin September 2008
GSP
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Specific process criterion: When certain operations or
stages in a manufacturing process have to be carried out
on the non-originating materials
Example:
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Just read any of the process descriptions in column three.
53
AETIC Rules of Origin September 2008
GSP
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Examples of insufficient (or minimal) operations:
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Operations to keep the product in good condition
Washing, cleaning, dust removal
Simple painting or polishing
Sifting, screening, sorting, classifying, grading, matching
Simple placing in bottles, cans and all other simple packaging
Affixing or printing marks, labeling ,etc
Simple assembly of parts of articles to constitute a complete article
or disassembly of products into parts
Combination of two or more of the operations mentioned
54
AETIC Rules of Origin September 2008
GSP
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Procedures and Documentation:
Council Regulation (EC) 1207/2001.
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If frequent and constant supply there is a possibility for a
suppliers declaration
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Procedures on EUR-1 by authorities and EUR-2 by exporters
The accepted exporter (approved exporter)
Methods for mutual cooperation between member states
Valid for maximum 1 year
Pre-scribed form according Annexes
Regulation amended by (EC) 1617/2006 due to PanEuropean cumulation
55
AETIC Rules of Origin September 2008
GSP
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Bilateral:
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Materials originating in the EU (according EU RoO) that are
processed beyond insufficient processing in a beneficiary
country will be of origin of that country (also known as
“donor country content”).
Also Norway and Switzerland are part of this cumulation
56
AETIC Rules of Origin September 2008
Documentation GSP




Certificate of Origin, Form A
Invoice declarations that can be used for low value GSP
exports
The movement certificate EUR 1 when goods are
exported to beneficiary countries from the EC
Note the lay-out and the way to complete the Form A and
EUR-1 are specified
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AETIC Rules of Origin September 2008
Cumulation

Bilateral



Between two partner countries
Example: Milk Albania origin used in EU cheese
Full



Only origin products
All transformation within the partner territory
Last transformation not necessarily substantial (in partner
territory anyhow)
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AETIC Rules of Origin September 2008
Cumulation

Regional



Materials originating in one country and further processed in
another country of the same group are considered to originate in
the latter country, provided that:
 The added value is greater than the highest customs value of
the materials used originating in any one of the other countries
of that group
And
 Processing is beyond insufficient (also look at special textiles
requirement)
If not, CoO is country with highest customs value of that regional
group
This operates between the countries of regional groups
recognized by EU GSP (see art 72)
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AETIC Rules of Origin September 2008
Cumulation

Diagonal



Only origin products
All transformation within the partner territory
Last transformation must be substantial (in partner territory
anyhow)
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AETIC Rules of Origin September 2008
Cumulation

The Tolerance rule:


Non-originating materials may be used in the manufacture of a
product, even if the rule of sufficient working is not fulfilled,
provided that their total value does not exceed 10% of the exworks price of the product. (specific product rules for textiles)
Examples:

Parts of same heading as end product, so no CTH. However,
permitted under tolerance rule if not more than 10% of total value
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AETIC Rules of Origin September 2008
Preferential rules for
high tech products
1.
2.

Harmonized by EU for GSP and FTA’s (chapt. 84,85,90)
Focus on restriction of non-originating materials
Value of non-originating materials used shall not exceed a given
percentage of the ex-works value of the product manufactured

Value of non-originating materials used, which are classified in the same
heading as the product manufactured or a given heading shall not
exceed a given percentage of the EXW value of the product manufactured

Value of non-originating materials used shall not exceed value
of originating materials used.
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AETIC Rules of Origin September 2008
Preferential rules for
high tech products

Non-originating materials:

All materials imported from outside the area formed by
the Trade Agreement
Materials coming from partner country without
confirmation or origin status (EUR-1)
Materials coming from country of manufacture without
confirmation of origin status (supplier declaration)


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AETIC Rules of Origin September 2008
Binding Origin Ruling





If in doubt or just want legal certainty, one can apply for a
Binding Origin Ruling decision (BOI).
Issued by National Customs Authorities
Decision binding for all Customs administrations within
the community
Valid for three years after issuing
Still other requirements, such as appropriate
documentation, need to be provided
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AETIC Rules of Origin September 2008
Part 4
Trade and Rules of Origin
65
AETIC Rules of Origin September 2008

Statement of Michel Danet, Secretary General WCO
during World Customs Forum with the Theme “Getting to
Grips with Origin” at WCO HQ June 2008:
RoO have become a very prominent feature of today’s
trading system
 The manifold of RoO presents challenges not only to
Customs but also to the business community
 The tangle of multiple and complicated rules particularly
from overlapping agreements among members of different
trade arrangements may cause harmful effects to the
international trading environment.

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AETIC Rules of Origin September 2008

ICC only organization representing business worldwide
and is only organization that is admitted as observer to
almost all WCO work.
 Eicta is sectoral organization (ICT and CE)
 All Trade organizations do see strong advantages in
facilitating international trade in a transparent and
predictable way.
 Eicta is working together with ITI, Jeita and JBMIA on this
issue: Industry point of view is to create rules on heading
level rather than on chapter.
ITI:
JEITA:
JBMIA:
Information Technology Industry Council)
Japanese Electronics and Information Technologies
Industries Association)
Japan Business Machines and Information Systems
Industries Association)
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AETIC Rules of Origin September 2008
Questions??
68
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