Agreement on Rules of Origin


Agreement on Rules of Origin

      This Agreement does not specifically refer to developing or least-developed countries. A summary of the Agreement has been included in this document for the sake of completeness.

      The Agreement covers rules of origin applied in all situations - such as granting of most-favoured-nation status, anti-dumping and countervailing actions, safeguard measures, discriminatory restrictions - other than in the context of trade regimes granting trade preferences. The provisions in the main body of the Agreement do not apply in the context of schemes granting preferences to developing countries, such as the Generalized System of Preferences or the Lomé Convention. A Common Declaration With Regard to Preferential Rules of Origin annexed to the Agreement applies some general guidelines to preferential rules of origin.

      The Agreement contains two sets of provisions.

      1. It sets out a programme to be carried out jointly with the Customs Co-operation Council, leading to the harmonization of all rules of origin applied in the context of non-preferential trade regimes. Under such trade regimes, for any single product, the same rule of origin will apply in all countries and in all contexts. The harmonized rules will, as far as possible, be based on the criterion of change of tariff classification for the product, using the Harmonized System nomenclature.

      2. It contains provisions relating to the administration of rules of origin. They aim to ensure that rules of origin are not used as trade policy instruments and do not have restrictive or distorting effects on trade.

      The Agreement includes provisions to ensure:

      • precise definition of the criteria on which the rules of origin are based, including a statement of what does (rather than what does not) confer origin
      • publication of laws and regulations relating to rules of origin
      • non-discrimination and impartiality in determinations of origin
      • non-retroactive application of new rules of origin and of amendments to existing rules
      • independent judicial review of determinations of origin
      • protection of confidential information
      • notification to the WTO Secretariat

      There are different provisions relating to the administration of rules of origin before and after completion of the harmonization work programme. These differences reflect the fact that, while different rules of origin apply before the implementation of the results of the work programme, all WTO Members should be applying the same, harmonized rules of origin thereafter.

      The Common Declaration annexed to the Agreement, takes up those provisions in the Agreement which can also be applied in the context of preferential trade regimes. These are provisions relating to:

      • a precise definition of the criteria on which the rules of origin are based, including a statement of what does (rather than what does not) confer origin
      • the publication of laws and regulations relating to rules of origin
      • the non-retroactive application of new rules of origin and of amendments to existing rules
      • the independent judicial review of determinations of origin
      • the protection of confidential information
      • the notification to the WTO Secretariat

       

 

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