Non-preferential rules of origin


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Non-preferential rules of origin

Non-Preferential Rules of Origin can be used as an important trade and commercial policy measure.

They do not compose a trade instrument by themselves, but they may be used in non-preferential commercial policy instruments relating to:

  • inter alia,
  • most-favoured-nation treatment,
  • anti-dumping duty,
  • safe guard measures,
  • origin marking,
  • tariff quotas,
  • government procurement,
  • trade statistics.

Harmonized Rules of Origin

“Harmonized Rules of Origin” mean coherent rules concerning origin determination. These rules are expected to be set out by co-operative efforts among WTO Member countries for non-preferential commercial policy instruments.

When the rules are completed, they will become an integral part of the Agreement on Rules of Origin.

As set in the Agreement on Rules of Origin, the Harmonized Rules of Origin should:

  • be applied equally for all the above-mentioned non-preferential purposes;
  • be objective, understandable and predictable;
  • not to be used as instruments to pursue trade objectives directly or indirectly;
  • be administrable in a consistent, uniform, impartial and reasonable manner;
  • be coherent and based on a positive standard
  • Benefits expected from the harmonization of non-preferential rules of origin

    Providing Overall Consistency in Origin Determination

    The Harmonized Non-Preferential Rules of Origin is expected to prevent discrepancies in origin determination among WTO Member countries. The rules do not allow any loophole in origin determination and they should present only one origin to each good.

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  • Harmonization Work Programme

    Role and Interaction of WTO and WCO

    The international institutions carrying out the Programme are the WTO Committee on Rules of Origin (CRO) which reported to the WTO Council for Trade in Goods, and theWCO Technical Committee on Rules of Origin (TCRO) which was established with the support of the WCO to undertake the technical work. Membership in both Committees is limited to Members of the WTO. However, the TCRO admits as observers those WCO Members that are not WTO Members, as well as some international organizations including the WTO, OECD, UNCTAD, the UN Statistics Division, the UN Law of the Sea Convention Secretariat and the International Chamber of Commerce the World Business Organization (ICCWBO).

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