What Are Rules Of Origin Features In Trade Agreement

Article 1 of the agreement defines the rules of origin as such general laws, regulations and administrative provisions applicable to the destination of the country of origin of the goods, with the exception of those related to the granting of tariff preferences. Therefore, the agreement applies only to rules of origin used in non-preferential trade policy instruments such as the treatment of anti-dumping and countervailing duties, safeguards, origin marking requirements and discriminatory quantitative restrictions or tariff quotas, as well as in trade statistics and public procurement. However, it is anticipated that the provisions of the agreement relating to the definition of domestic industry or similar domestic industry products will not be affected by the agreement. This method takes into account the degree of manufacturing or processing of a country by calculating the value it adds to the products. When value added meets a specified threshold called percentage, production or processing is considered important or sufficient to allow the products to acquire the original character in the country where that production or processing takes place. A rule based on the value-added requirement can be expressed in one of the following controls: the supervisory authorities are, in principle, the customs authorities of the importing countries, unless otherwise stated. This is because origin control must be carried out in the country of import when goods arrive at the port of entry in order to determine (preferential) tariffs on the lot under its customs legislation. In particular, many agreements indicate that customs authorities are both supervisory and supervisory authorities. Among the three methods of applying the „substantial transformation” test, changing the tariff classification in the Rules of Origin Agreement is considered a primary method. In Article 9 on the objectives and principles of harmonization of rules of origin, the original agreement divides „substantial transformation” into two groups in which the „change in tariff classification” differs, while other methods are considered „complementary”.