2.5.     RULES OF ORIGIN

‘Which countries have preferential trade arrangements with the EU?
‘How can an exporter/importer give a proof of the country of origin in order to benefit of a preferential import tariff when goods are imported in the EU ?’
‘Where can he find info about the rules for determining the country of origin?

For an answer to these questions, look into the websites presented below.

 

Information source 1:         European Commission – Taxation and Customs union – Rules of Origin

Web address:              http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/index_en.htm

 

For goods imported into one of the EU countries (Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Greece, Spain, France, Ireland, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, The Netherlands, Austria, Poland, Portugal, Slovenia, Slovakia, Finland, Romania, Sweden and the United Kingdom), the country of origin will determine the preferential trade arrangement(s) that might apply to them.

Besides bilateral trade agreements with others these arrangements concern:
The Countries of Africa, the Carribbean and the Pacific (ACP), customs unions with Andorra, Turkey and San Marino, European Economic Area (EEA), System of Pan-Euro-Mediterranean cumulation, Generalised System of Preferences, Latin America, The Overseas Countries and territories( OCT), South Africa and Western Balkans. Click on these regimes for a legible clarification.

Some countries benefit from more than one arrangement. This simply means that the most beneficial arrangement can be applied.
 
The site is divided into four main parts:
 

 

 

Non-Preferential Origin

Introduction

Non-preferential rules are used for all kinds of commercial policy measures, like, for instance, anti-dumping duties and countervailing duties, trade embargoes, safeguard and retaliation measures, quantitative restrictions, but also for some tariff quotas, for trade statistics, for public tenders, for origin marking, and so on. In addition, the EU's export refunds in the framework of the Common Agricultural Policy are often based on non-preferential origin.

WTO Harmonisation

WTO members have agreed to harmonise the non-preferential rules of origin. For that purpose the Agreement on Rules of Origin of Marrakesh (1994) established a work programme (HWP).

General aspects of preferential origin

Introduction

Preferential origin is conferred on goods from particular countries, which have fulfilled certain criteria allowing preferential rates of duty to be claimed.

Common provisions

While the provisions of the individual arrangements may vary in certain details, most preferential origin arrangements have a number of common provisions.

Legal framework(s) for preferential origin

Each individual arrangement has its own legal base.

List Rules

List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status.
List of preferential arrangements

1) Generalised System of Preferences

Facility granted unilaterally to developing countries including the 'Everything but arms initiative' for Least Developed Countries.

2) European Economic Area

The EEA (EC, Iceland , Norway and Liechtenstein) is considered as a single territory with a common EEA originating status.

3) System of Pan-Euro-Mediterranean cumulation

A system of Pan-Euro-Med cumulation of origin is an extension of a previous system of Pan-European cumulation. It therefore operates between the EC and the Member States of the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland) and Turkey and countries which signed the Barcelona Declaration, namely Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and the Palestinian Authority of the West Bank and Gaza Strip. Faroe Islands have been added to the system as well.

4) Western Balkans

Albania , Bosnia and Herzegovina , Croatia , the former Yugoslav Republic of Macedonia and Serbia and Montenegro. These countries are all part of the Stabilisation and Association process.

5) The Countries of Africa, the Caribbean and the Pacific (ACP)

The trade preferences available to the 77 African, Caribbean and Pacific States.

6) The Overseas Countries and Territories (OCT)

The EC grants unilateral trade preferences to the OCTs. These are constitutionally linked to four of the Member States (Denmark, France, the Netherlands and the United Kingdom).

7) South Africa

The bilateral Trade Development and Co-operation Agreement establishes a free trade area between the EC and South Africa.

8) Latin America

Agreements with Mexico and Chile.

9) Others

Faroe Islands, Ceuta and Melilla.

 

It also contains:

 

To find info about rules of origin, follow the steps.

Step 1:   click on “List of non-EU countries” in order to find out which preferential arrangement(s) appl(y)ies to trade with a certain country.

Step 2:   read in the Introduction the info about the meaning of origin and how Binding Origin Information (BOI) can help you.

Step 3:   consult a “check-list” in order to determine which section of the website is relevant to your problem or question.

 

 

Information source 2:         European Commission – Export Helpdesk for developing countries

Web address:                      http://exporthelp.europa.eu/

 

To find info about rules of origin, follow the steps.

Step 1:   login to website of Export Helpdesk (click on the link above)

Step 2:   click on “Rules of Origin”.

Step 3:   select a preferential trade regime and enter a product code.

Step 4:   click on “view” and find info about working or processing, carried out on non-originating materials, which confers originating status.

 

 

Information source 3:         European Commission - DG Taxation and Customs Union (DG TAXUD)

 

Companies can also contact the European Commission’s services on matters relating to the interpretation of rules of origin in international trade.

Contact address:                European Commission
Directorate General Taxation and Customs Union ( DG TAXUD).
                                               Unit B4 – Rules of origin
                                               B – 1049 Brussels
                                               Belgium
                                               E-mail: taxud-b4@cec.eu.int