Rules of Origin Facilitator

Rules based on CVR can be calculated using the following methods/formulas: net cost (NC), transaction value (TV), construction and accumulation. rules of origin are applied: to implement trade policy measures and instruments such as anti-dumping duties and safeguard measures; determine whether imported products benefit from most-favoured-nation or preferential treatment; for trade statistics purposes; for the application of labelling and labelling requirements; and government procurement. In the many free trade agreements, you will find different types of rules of origin (ROO). They are specific to each free trade agreement and generally vary from agreement to agreement and product to product. Although the details may vary, many methods and formulas are repeated. Rules of origin are listed in free trade agreements by HS product classification numbers: Australia, NAFTA, Chile, Colombia, CAFTA-DR, Korea, Singapore, Peru and Panama. Other ROOs are based on a 35% estimation method: Israel, Jordan, Bahrain, Morocco and Oman. Now that you have applied your rule of origin and know that your good qualifies for an FTA preferential rate of duty, you can certify the origin of the goods. In accordance with Article 5(1) of the Agreement, each Member shall communicate to the Secretariat, within 90 days of the entry into force of the WTO Agreement, its current rules of origin, judicial rulings and administrative rulings of general application concerning rules of origin.

The Secretariat shall circulate to all members the lists of information received and available to them. At its meeting on 4. In April 1995, the Committee agreed that notifications in a language other than a WTO working language should be supplemented by a summary in a WTO working language (G/RO/1). develop, on the basis of the criteria for substantial conversion, the application of variation in tariff classification in the development of harmonised rules of origin for certain products or sectors, including the minimum variation within the nomenclature corresponding to this criterion. To facilitate the navigation of traders through the complex landscape of trade agreements, ITC and WCO have developed an online tool called the Rules of Origin Facilitator ( that serves as a gateway to these agreements. The tool allows users to determine whether a particular product is covered by preferential treatment and to identify the rules of origin to be respected in relation to a particular regime. Rules of origin are used to determine whether goods qualify for duty-free, reduced-duty or reduced-duty entry under FTA rules, even though they may contain non-originating components (not covered by an FTA). Second, a growing number of origin disputes arising from quota agreements such as the Multifibre Arrangement and voluntary steel export restrictions; and A Technical Committee on Rules of Origin will be established under the auspices of the World Customs Organization (formerly the Customs Cooperation Council). Its main tasks are: (a) to carry out harmonization work; and (b) deal with any matter relating to technical issues related to rules of origin. It meets at least once a year. Accession is open to all WTO Members; other WCO Members and the WTO Secretariat may participate as observers (Article 4(2) and Annex I).

A second option is to view the original ROOs in an annex or in the rules of origin chapter of an FTA. The full text of the FTA is available on the website of the U.S. Trade Representative (USTR). You may need to review the latest rules (in U.S. general notices. Harmonized tariff plan) as opposed to the original codes, as HS codes are sometimes revised every few years, requiring regulatory adaptation. The Rules of Origin Facilitator is designed to meet the needs of small and medium-sized enterprises. It is intuitive to use and business friendly. Each determination of origin is linked to a tailor-made glossary that allows users to become familiar with the purpose of the determination and practical examples of its application. There are currently more than 400 free trade agreements and preferential trade agreements around the world that set lower tariffs on certain goods, provided certain origin criteria are met. However, many companies are unaware of the fact that they can benefit from tariff preferences or, knowing that such systems exist, they do not understand how to check whether the goods they buy or sell qualify for preferential treatment.

The Agreement on Rules of Origin aims to harmonise non-preferential rules of origin and to ensure that these rules do not themselves create unnecessary barriers to trade. The agreement contains a work programme for the harmonisation of rules of origin to be carried out in cooperation with the World Customs Organisation (WCO) following the entry into force of the World Trade Organisation (WTO). This type of tariff change shows that non-originating items have been converted either in the United States or in FTA partner countries to the extent that they qualify for a preferential tariff under the FTA. The quantity of non-FTA components does not matter. harmonised definitions of goods to be regarded as wholly obtained in a country and of minimum operations or processes which do not in themselves confer the origin of the goods; You can also consult the CBP Free Trade Agreement Comparison Table (Origination section), which lists the reference documents where rules of origin can be found. It is accepted by all countries that the harmonization of rules of origin, i.e. the definition of rules of origin, which will be applied by all countries and which will be the same regardless of the purpose for which they are applied, would facilitate international trade flows. Indeed, the abuse of rules of origin may in itself make them an instrument of trade policy, rather than simply acting as an instrument in support of a trade policy instrument. However, given the diversity of rules of origin, this harmonisation is a complex undertaking. In 1981 the GATT Secretariat prepared a communication on rules of origin and in November 1982 ministers agreed to examine the rules of origin applied by GATT contracting parties. Until much of the Uruguay Round negotiations, little work was done on rules of origin.

In the late 1980s, developments in three important areas led to a greater focus on the problems of rules of origin: Country of origin determination rules can be very simple when a product is wholly grown or mainly manufactured and assembled in a country. However, if a finished product contains components from many countries, determining origin may be more complex. Rules of origin can be very detailed and specific, varying from agreement to agreement and product to product. First, increased use of preferential trading arrangements, including regional agreements, with their different rules of origin; Until the completion of the three-year work programme on harmonization, Members are expected to ensure that their rules or origin are transparent; they are managed in a consistent, impartial and rational manner; and that they are based on a positive standard. In addition to product-specific rules of origin, the tool also highlights provisions on certification of origin, cumulation, audit trail, dispatch and invoicing, indicating which documents are required (e.g. a certificate of origin) and where information can be found on the websites of national authorities. Regional Value Content (RVC) rules require a product to contain a certain percentage of FTA content. To benefit from a free trade agreement, your product must have added value from the U.S. partner country or FTA. This value may result from the cost of FTA-related materials or skilled labour. Each FTA text has its own product-specific rules of origin that dictate the method(s) or RVC formula that you can use to qualify your product as preferential duties.