Introduction to ROOs.pdf
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1Art’08
Rules of Origin
(ROO)
In
Fta’s
Art’08
Rules of Origin
Definition
? Laws, regulations and
administrative determinations to
ascertain the country of origin of
a good.
? Refers to the country where a
particular good is produced,
manufactured or obtained
Country of Origin
Art’08
Rules of Origin
1. Preferential Rules of Origin
? Regulations and administrative determinations
of general application applied by any Member
to determine whether goods qualify for
preferential treatment
? Laws, regulations and administrative
determinations of general application applied
by any member to determine the country of
origin of goods (Article 1.1 of the WTO
Agreement on ROO)
2. Non-Preferential Rules of Origin
Art’08
Rules of Origin
Applications
? Determine whether imported products shall be
subjected to a most-favored nation (MFN)
treatment or preferential treatment.
? Implement measures and instruments of
commercial policy (e.g., anti- dumping,
countervailing, safeguards).
? Trade statistics and issuance of certificate of
origin.
? Application of labeling and marking
? Public procurement Process patent
Art’08
Rules of Origin
Why do we need Rules of Origin?
? Free Trade Agreements allows preferential
tariffs for almost all goods traded within
the region
? ROOs form the basis for determining what
goods are eligible for preferential access
under the Agreement
? Access to cheaper inputs
? Competitive advantage on exports
Art’08
Rules of Origin
Two Basic criteria to determine the
country of origin of goods:
l. Wholly Obtained (WO)
ll. Substantial Transformation (ST)
and
1. VA 2. CTC 3. Process Rule
2Art’08
ORIGIN CRITERIA
In order that a product to be considered
originating from the exporting country, it
should be:
l. WHOLLY OBTAINED
Products which have been, entirely grown,
extracted from the soil or harvested within
the exporting country, or manufactured
there exclusively by virtue of the total
absence of the use of any imported
components
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