Introduction to ROOs.pdf

1Art’08 Rules of Origin (ROO) In Fta’s Art’08 Rules of Origin Definition ? Laws, regulations and administrative determinations to ascertain the country of origin of a good. ? Refers to the country where a particular good is produced, manufactured or obtained Country of Origin Art’08 Rules of Origin 1. Preferential Rules of Origin ? Regulations and administrative determinations of general application applied by any Member to determine whether goods qualify for preferential treatment ? Laws, regulations and administrative determinations of general application applied by any member to determine the country of origin of goods (Article 1.1 of the WTO Agreement on ROO) 2. Non-Preferential Rules of Origin Art’08 Rules of Origin Applications ? Determine whether imported products shall be subjected to a most-favored nation (MFN) treatment or preferential treatment. ? Implement measures and instruments of commercial policy (e.g., anti- dumping, countervailing, safeguards). ? Trade statistics and issuance of certificate of origin. ? Application of labeling and marking ? Public procurement Process patent Art’08 Rules of Origin Why do we need Rules of Origin? ? Free Trade Agreements allows preferential tariffs for almost all goods traded within the region ? ROOs form the basis for determining what goods are eligible for preferential access under the Agreement ? Access to cheaper inputs ? Competitive advantage on exports Art’08 Rules of Origin Two Basic criteria to determine the country of origin of goods: l. Wholly Obtained (WO) ll. Substantial Transformation (ST) and 1. VA 2. CTC 3. Process Rule 2Art’08 ORIGIN CRITERIA In order that a product to be considered originating from the exporting country, it should be: l. WHOLLY OBTAINED Products which have been, entirely grown, extracted from the soil or harvested within the exporting country, or manufactured there exclusively by virtue of the total absence of the use of any imported components