The GATT does not contain specific rules for determining the country of origin of goods in international trade. Each Contracting Party was free to determine its own rules of origin and could even maintain several different rules of origin depending on the subject matter of each regulation. The authors of the General Agreement noted that the rules of origin should be maintained: . Within the jurisdiction of each importing country, in accordance with its legislation for the purposes of the application of the most-favoured-nation provisions (and for other GATT purposes), to determine whether the goods are actually originating in a particular country. In Article VIII(1)(c) of the General Agreement on Import and Export Taxes and Formalities, the Parties also recognise the need to minimise the frequency and complexity of import and export formalities and to reduce and simplify the requirements for import and export documents, and Explanatory Note 2 to that Article states that: whereas it would be consistent for the importation of products from the territory of one Contracting Party into the territory of another Contracting Party to require the presentation of certificates of origin only to the extent strictly necessary. The WTO has broadened its perspective on rules of origin. The General Agreement on Tariffs and Trade (GATT), which replaced the WTO, required that rules of origin be transparent and managed in a consistent, uniform, impartial and reasonable manner. The WTO has sought to clarify these restrictions and harmonize rules between countries on the basis of the Agreement on Rules of Origin adopted by GATT in 1994. Rules of origin can also be used to interpret laws that govern labelling requirements, such as.B. Stickers and to assist in the production of bilateral trade statistics. In fact, non-preferential rules of origin in the WTO are no more harmonized than in free trade agreements. Despite enormous efforts, the work programme on the harmonization of non-preferential rules of origin has not yet made significant progress, so that there are still no common rules of origin for non-preferential purposes in the WTO. During the so-called “transition period”, the formulation and implementation of non-preferential rules is literally at the discretion of MEPs.
[11] The only difference with preferential rules of origin is that non-preferential rules of origin are subject to more stringent requirements in WTO agreements, in particular in the Agreement on Rules of Origin and the Trade Facilitation Agreement. [12] Rules of origin are intended to reflect commercial and production practices. It is obvious that a product can only be obtained or manufactured by one country, but it can also be a product manufactured with the participation of several countries. Therefore, the criteria for determining the origin of goods – the most important element of any set of rules of origin – are designated to reflect both circumstances. The definition makes it clear that rules of origin are essentially the “criteria” for determining the origin of goods. These criteria can be developed from the principles of national legislation or international treaties, but the implementation of rules of origin (i.e. certification and verification) always takes place at the country level. It is also important to note that the purpose of rules of origin is to define the country of origin, not a geographical area such as a region or province (which is very important in the field of intellectual property rights). The country of origin is often found on the label or marking of a product, for example “Product from China”, “Made in Italy”, etc.
In terms of certification, a professional needs to know whether or not self-certification is allowed under the trade agreement under which they claim preferences. Where permitted, the operator (i.e. the manufacturer, exporter or, in some cases, importer) is only required to complete the consignment information on a mandatory form (if applicable) and to declare that the goods listed therein meet the origin criteria and other requirements. However, if self-certification is not allowed, a trader must request a proof of origin issued by a certification authority, which is usually the Chamber of Commerce or an agency of the Ministry of Commerce. To obtain such a document, the exporter or manufacturer must submit various documents relating to the manufacture or manufacture of the goods. The competent authority shall examine the dossier and visit the premises of an applicant in order to verify and, if necessary, certify that the goods meet the origin criteria of this Trade Agreement. [23] You can also consult CBP`s comparative table (Origination section), which lists reference documents containing rules of origin. Article 1 of the Agreement establishes rules of origin as laws, regulations and administrative provisions of general application applicable to determining the country of origin of goods, with the exception of those relating to the granting of tariff preferences. Thus, the Agreement applies only to rules of origin applied to non-preferential trade policy instruments such as most-favoured-nation treatment, anti-dumping and countervailing duties, safeguard measures, origin marking requirements and any discriminatory quantitative restrictions or tariff quotas, as well as to trade statistics and government procurement. However, it is expected that conclusions regarding the definition of the domestic industry or like products of the domestic industry will not be affected by the agreement.
The WTO administers the Agreement on Rules of Origin. It holds committees on rules of origin. Although most of the WTO`s work focuses on non-preferential rules of origin, the current initiative on rules of origin for least developed countries is important work that the WTO is continuing. It obliges Members that commit themselves in ministerial declarations to notify their rules of origin under preferential treatment for least developed countries. The WTO`s non-preferential rules of origin website provides an archive of documents relating to non-preferential rules of origin in Members. [25] A database on preferential rules of origin notified under the LDC initiative will also be provided. [26] Simply put, ROAs are the rules used to determine where a particular good comes from or where it is produced. They are used to enable importers, exporters and regulators to determine whether the importer of that product is eligible for a reduced or zero rate of duty applicable to the importation of that product if it “originates” in one FTA country and is imported into the other […].