Trade Agreement Rules Of Origin

Packaging: a provision that specifies whether the packaging should be taken into account in determining the origin of the product. Rules of origin (ROC) are used to determine whether products benefit from duty-free or reduced under the rules of trade in products, even if they may contain non-original ingredients (not derived from the free trade agreement). First, strengthening the application of preferential trade regimes, including regional agreements, with their different rules of origin; The definition clearly shows that the rules of origin are in fact the “criteria” for determining the origin of the goods. Such criteria can be developed from national legislation or international treaties, but the implementation of the rules of origin (i.e.: Certification and verification) is still done at the national level. It is also important to note that the purpose of the rules of origin is to define the country of origin, not a geographical area such as the region or province (which is very important in the area of intellectual property rights). The country of origin is often found in the label or on the marking of a property. B for example” Chinese product , “Made in Italy”, etc. The Bali Ministerial Decision sets out the first multilateral guidelines on the rules of origin that preferential WTO beneficiaries apply to their non-reciprocal preferential regimes for least developed countries. The purpose of these guidelines is to facilitate the qualification of LDC exporters in terms of preferences and thus to make better use of market access opportunities available to them. Rules of origin are particularly important in free trade agreements, which are intended to focus exclusively on products of preferential origin. In this context, rules of origin are essential to distinguish between products originating from contracting parties and those from third countries.

This differentiation is intended for two purposes: (1) it allows the importing party to determine whether a product can benefit from preferential treatment under the independent free trade agreement; (2) it avoids the scenario in which exports from third countries enter the free trade agreement through the lowest external tariff member (i.e. trade transfer). [14] This explains why, in a customs union, it is not necessary to establish rules of origin between their contracting parties – members of a customs union are required to maintain a common external tariff rate on imports from third countries. [15] Since this is the determination of the economic nationality of goods, the role of the rules of origin naturally arises from the fact that a number of trade policy measures are applied on the basis of the origin of imports. If, for example, Country A wishes to impose anti-dumping duties on steel products from country B, it is when rules of origin come into play. In the absence of rules of origin, Country A cannot properly apply this measure because it is unable to determine whether steel is “produced in country B” in a given batch.