Wto Agreement On Rules Of Origin

Rules of origin are particularly important in free trade agreements, which are established to grant preferences exclusively to products of preferential origin. In this context, rules of origin are essential for distinguishing goods originating in the Contracting Parties from products originating in third countries. Such differentiation has two objectives: (1) it enables the importing Party to determine whether a product is eligible for preferential treatment under this Free Trade Agreement; 2. It avoids the scenario in which exports from third countries enter the FTA through the Member with the lowest external tariff (i.e. trade offshoring). [14] This explains why, in a customs union, it is not necessary to establish rules of origin between its contracting parties – members of a customs union must maintain a common external tariff for imports from third countries. [15] Packaging: Provision specifying whether packaging is to be taken into account when determining the origin of the product. In order to complete the harmonization work programme, the WCO and the WTO have developed a comprehensive architectural plan. The architecture will define the principles according to which the different rules will be applied and lead to the final results for the application of these rules to specific cases. During the transition period (e.B. until the entry into force of the new harmonised rules), Members shall ensure that: (a) the rules of origin, including the specifications of the essential conversion test, are clearly defined; (b) rules of origin are not used as a trade policy instrument; (c) the rules of origin themselves do not have restrictive, distorting or disruptive effects on international trade and do not require compliance with conditions unrelated to the manufacture or processing of the product concerned; (d) the rules of origin applied to trade are no stricter than those used to determine whether something is national and do not discriminate between members (GATT principle of most aid). However, with respect to rules of origin for government procurement, Members are not required to assume additional obligations that have not yet been assumed under GATT 1994 (with the exception of national treatment of government procurement under Article III(8) of the GATT). (e) the rules of origin are managed in a consistent, uniform, impartial and proportionate manner; (f) Rules of origin are based on a positive standard.

Negative norms are permitted either in the context of a clarification of a positive standard or in individual cases where a positive determination or origin is not required; (g) the rules of origin are published without delay; (h) on request, origin assessments shall be issued and made available to the public as soon as possible and no later than 150 days after that request; Confidential information may only be disclosed if this is necessary in the context of legal proceedings. Origin assessments shall remain valid for three years, provided that the facts and conditions remain comparable, unless a decision contrary to a decision is taken in the context of a review referred to in point (j). .