Rules of Origin (ROO)


Country of origin Rules of origin (ROO) are the criteria needed to determine the of a product for purposes of international trade. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports.
 Rules of origin are used:
(i) to implement measures and instruments of commercial policy such as antidumping duties and safeguard measures;
(ii) to determine whether imported products shall receive most-favoured-nation (MFN) treatment or preferential treatment;
(iii) for the purpose of trade statistics;
 (iv) for the application of labelling and marking requirements; and
(v) for government procurement.
     The Rules of Origin are important in the context of making an assessment on the application of preferential tariff under an FTA. Hence, without the rules of origin, the preferential tariffs under an FTA cannot be implemented. Moreover, the nonmembers to the FTA are not provided with the benefit of the preferential tariffs, agreed between the FTA partners.
The rules of origin are enforced through a certificate of origin that is issued by authorised agencies of the trading partner. An exporter cannot avail of the customs tariff preferences under the FTA without submitting this certificate of origin from the authorised agency.
For the purposes of claiming the preferential tariff treatment for an originating good of the exporting Party, a certificate of origin is submitted to the customs authority of the importing Party by the importer, together with the documents required for the importation of the good in accordance with the laws and regulations of the importing Party. The details regarding certification and verification are set out in the individual FTA provisions.

Thursday, 03rd Sep 2015, 10:55:32 AM

Add Your Comment:
Post Comment