RESTRICTEDGENERALAGREEMENTONL871TARIFFSANDTADE17October1958LimitedDis - PDF document

1 RESTRICTEDGENERALAGREEMENTONL/871TARIFFS
RESTRICTEDGENERALAGREEMENTONL/871TARIFFSANDTADE17October1958LimitedDistributionCONTRACTINGPARTIESThirteenthSessionMARKSOFORIGINNotebytheExecutiveSecretaryInaccordancewiththeinstructionsreceivedfromtheCONTRACTINGPARTIESadraftRecommendationonMarksofOriginhasbeenpreparedbythesecretariatfortheconsiderationoftheCONTRACTINGPARTIES,ThisdraftisbasedontheWorkingParty'sReportadoptedin1956(BISD,FifthSupplement,page103),butalsotakesaccountoftheadditionalsuggestionswhichcontractingpartieswereinvitedtomake,NotestotheindividualparagraphsoftheattacheddraftRecommnendationindicatethesourceonwhichtherelevantsuggestionisbasedandthesummarizedviewsexpressedbycontractingparties.Inthisconnexionitshouldbepointedoutthatunlessthesuggestivecontainedinparagraphs6-8areincludedintheRecommendationtheexporterswillnothavetheassurancethattheproductsmarkedinaccordancewiththeRocommendationwillbeacceptedgenerally.IfthatwerethecasethevalueofaRecommendationforthetraderwouldbeseriouslyimpaired.DRAFTRECOMMENDATIONCONSIDERINGthatinArticleIXofGATTtheCONTRACTINGPARTIESrecognizethat,inadoptingandenforcinglawsandregulationsrelatingtoMarksofOrigin,thedifficultiesandinconvenienceswhichsuchmeasuresmaycausetothecommerceandindustryofexportingcountriesshouldbereducedtoaminimumandthattheyhaveagreedoncertainbasicprinciplesforthecarryingoutofthisidea,CONSIDERINGfurtherthatitwouldfacilitatetheobtainmentofthe-objectivesoftheGeneralAgreementiftheCONTRACTINGPARTIESweretoagreeoncertainruleswhichwouldfurtherreducethedifficultiesandinconvenienceswhichmarkingregulationsmaycausetothecommerceandindustryoftheexportingcountry,THECONTRACTINGPA

2 RTISRECOMMENDtoadoptthefollowingrulesonM
RTISRECOMMENDtoadoptthefollowingrulesonMarksofOrigin:1.Thecontractingpartiesshouldscrutinizecarefullytheirexistinglawsandregulationswithaviewtoreducingasfarastheypossibly.canthenumberofcasesinwhichmarksoforiginarerequired,andtolimittherequirementsofmarksoforigintocaseswheresuchmarksareindispensablefortheinformationofthefinalbuyer/ultimatepurchaser7. L/871Page2Basis:Paragraph1ofthesuggestionsoftheInternationalChamberofCommercereproducedindocumentL/788,(referredtointhefollowingas"ICCRecommendation").Remarks:TheRecommnendationisbasedontheideatoinvitethecountriestolimittheirmarkingrequirementsandtoprovideforcertainfacilitieswhereveracountryconsiderssucharequirementnecessary'Japan,however,suggestsadifferenttypeofrecommendation,namely,(a)toinvitethecountriestoabolishcompletelymarkingrequirements,and(b)toprovideforrecommendationforthetransitionalperiodinwhichcountrieshavenotyetcompliedwiththisRecommendation.TheUnitedKingdomsubscribesfullytotheprinciplelaiddowninthisRecommendation,butdrawsattentiontothedifficultiesofdefinitiontobesolvedbeforethisandotherpartsoftheRecommendationcouldbeaccepted.TotakeaccountofthesuggestionmadebytheUnitedKingdominthatconnexion,namelytoconsiderothermethodsforachievingthedesiredeffect-aprocedureforconsultationshasbeenlaiddowinparagraph.18oftheRecommendation.TheUnitedStatesdrawsattentiontothefactthatthebasicprovisionsincludedintheTariffactof1930providethat.markingmustbemadeinawaythatitreachestheultimateepurchaserswhoisnotnecessarilythefinalbuyer.2TherequirementofmarksoforiginshouldneverbeageneraloneapplicableIndiscriminatelytoallimportedgoods,butshouldbeli

3 mited,Incollaborationwiththeindustryandt
mited,Incollaborationwiththeindustryandtradeconcerned,tocaseswheresuchamarkingiscon-siderednecessary.Basis:Firstsentenceofparagraph3oftheICCRecommendation.Remarks;TheUnitedKingdomis,inprinciple,infavourofsuchRecommendationunderthesameconditionsasexpressedintheirremarktoparagraph1.TheUnitedStates,however,statessuchaRecomaendationcouldnotbeacceptedduetothefactthatthemarkingprovisionsoftheTariffActof1930requiregenerallythatthenameofthecountryoforiginbedisclosedtotheultimatepurchaser..Availableinthesecretariat. L/871Page33.Ifmarksoforiginaretobereqiored,anytypeofmarkaffixedin.awaywhichensuresitsvisibilityatthetimeofpurchasebytheconsumer,shouldbeconsideredasatisfactorymarking.Basis:Paragraph12oftheWorkingPartyReportof1956,reproducedintheBISDFifthSupplement,page103,(referredtointhefollowingasW.P.Report).Remarks:TheFederalRepblicofGermanyexpressesitselfinfavourofsuchRecommendation.4.Ifcountriesprescribethetypeofmarkingrequiredforeachcategoryofgoods,therequirementshouldbemadethesubjectofatechnicalstudyincollaborationwiththeindustryandthetradeconcerned,withaviewtode-terminingwhatformthemarkshouldtake,Basis:Secondsentenceofparagraph3oftheICCReccmmendatian.Remarks:TheUnitedKingdomis,inprinciple,infavourofsuchRecommendationunderthesameconditions,however,asexpressedintheirremarktoparagraph1.5.Thenationalprovisionsconcerningmarksoforiginshouldnotcontainanyotherobligationthantheobligationtoindicatetheoriginoftheimportedproduct.Anyotherrequirement,suchastherequirementtoindicatethechemicalcompositionofapharmaceuticalproduct,shouldbegovernedbyspecificregulationsapplyingequallytodomesticandimpo

4 rtedproducts.Basis:Paragraph13oftheW.P.R
rtedproducts.Basis:Paragraph13oftheW.P.Report.Remarks:Germnanyagreeswiththisrecommendation.TheUnitedStatesdrawsattentiontothefactthatadditionalmarkings(thenameoftheproducerortheformula.oftheproduct)arenotgenerallyrequiredbutincertainexceptionalcasesthelawcompelsspecialmarkings(e.g.onwatchmovements),6.Countriesshouldacceptasingleformulaasasatisfactorymarkingwhichcouldthusbeuseduniversallybymanufacturersexportingtoseveraldifferentcountries,eachimportingcountryhavingofcoursetherighttoaccept,inaddition,anyotherformulaiftheysodesire.Basis:Paragraph5oftheICCRecomendation.Remarks:TheUnitedStatesdrawsattentiontothefactthatthesection304.oftheTariffActof1930,asamended,requiresmarkingso"astoindicate......theEnglishnameofthecountryoforigin"inamannerauthorizedbytheSecretaryoftheTreasury. L/871Page47.TheindicationofthenamecfthenameexportingcountryintheEnglishlanguage/introducedbythewords''madin''shouldbeacceptedasasatis-factoryformulainthesenseofparagraph6ofthisRecommendation.Basis:Paragraphs9and10oftheW.PPReport;paragraph4-oftheICCRecommendation.Remarks:Thewords"madein"areaddedinsquarebracketstotherecommendationsoastoindicatethatanumberofcountries-seeparagraph9oftheW.P.Report-areinfavourtorecieendtheacceptanceoftheEnglishnameofthecountrywithoutadditionofthewords"madein".,Similarly,theICCrecommendstoacceptthenameofacountrywithouttheadditionofanyformulasuchas''madein"toberecognizedasasatisfactoryrmarking,TheUnitedStatesstressesthatonlyinsomeinstancestheadditionofthewords"medein"isrequired.Remarksrelatedtoparagraph20oftheW.P.Report:DuetothenegativeapproachoftheWorkingPartytheideaofrecommendi

5 ngtheacceptanceofknowntrademarkshasnotbe
ngtheacceptanceofknowntrademarkshasnotbeenincorporatedintherecommendation.BothGermanyandJapanmentionthattheywouldhavenoobjectionstotheacceptanceofknowntrademarksasasatis-factoryindicationoforigin-TheUnitedStates,however,statesthatitcouldnotacceptanyrecommendationwhichwouldhavesuchaneffect.8.Commonlyusedinitialsforacountry,suchasU.K.,U.S.A.,shouldbeconsideredasatisfactoryreplacementforthefullnameofthecountry.Basis:W.P.Reportparagraph11;andparagraph4oftheICCRecommenda-tion.Remarks:Nonegativecomments.9.Markingshouldnotberequiredoncontainersofarticlesproperlymarked,Basis:Paragraph14oftheW.P.Repo~rt.Remarks:TheUnitedStatesdeclaresthatitcouldagreetotheprinciplethatnomarkoforiginshouldberequiredoncontainersofproperlymarkedprojectsiftheyarenotdesignedtobesoldwiththeproduct,orareusedfortransportpurposesonly.Itisindicatedthatthepresentprovisionsrequirethemarkingofcontainers,butthereareexceptionstothegeneralrule. L/871Page5..10,Markingonthecontainershouldbeaccepted,however,inlieuof.the--markingoftheproductinthefollowingcases:(a)Ifthistypeofmarkingiscustomarilyconsideredsatisfactory(suchasintheeaseofmargarineboxes).(b)Ifthetypeofpackingmakesitimpossiblefortheconsumertoopenitwithoutdamagingthegoods'(c)Inthecaseofgoodswhich,becauseoftheirnature,arenormallysoldinsealedcontainers.(d)Incaseswhereamarkingofthegoodsshippedinacontainerisimpossible,suchasinthecaseofliquidsandgas,orotherproductsthatcannotbemarked(paragraphs15and16oftheW.P.Report).Basis:10a,paragraph15ofW.P.Report10b,paragraph16"10c,paragraph1610d,paragraph17Remarks:10c:Germanysuggeststoaddmanicurecases,travellingcases,etc.asexampl

6 es.10d:TheUnitedStatespointsoutthatitsma
es.10d:TheUnitedStatespointsoutthatitsmarkingrequirementsareconsistentwiththisprinciple.11.Thefollowingcommercialimportsshouldgenerallybefreedfromthemarkingrequirement:(a)Productiongoodsorcapitalgoods,theoriginofwhichisusuallyknowntothebuyer.(b)Sparepartsofequipmentalreadyimported,andpartsseparatelydespatched,includingcomponentpartsimportedforpurposesofassembly,(c)Productsoflittlevalue,inparticularcommercial,samplesofnegligiblevalue.(d)Othersamplesthanthoseoflittlevalue,coveredbytheGATTConventionforFacilitatingtheImportationofSamplesandAdvertisingMaterial.(e)Prospectuses,posters,dummypacksandsimilaradvertisingmatternotdestinedforsale.Basis:11a.paragraph2oftheICCRecommendation;11b,paragraph19oftheW.P.Report;paragraph7oftheICCRecommendation;11c,paragraph21oftheW.P.Report;11d,paragraph6oftheICCRecommendation;11e,newGermanproposal. L/871Page6Remarks:TherecommendationtoexcepttypesofgoodsfromthemarkingrequirementassuggestedbytheICChasnotmetwiththeapprovalofallmembersoftheWorkingParty,ParticularlytheUnitedKingdomstressedinanadditionalstatementthatitwouldnotbeinaposition"toacceptanyRecommendationwhichcalledfortheexclusionofmarkingrequirementsforspecifiedclassesofgoodsbecausetheUnitedKingdomlegislationrequiresimportedgoodsofanydescriptiontobemarkediftheybearanameortrademarkbeing,orpurportingtobe,anameortrademarkofanymanufacturer,dealerortraderintheUnitedKingdon,orthenameofanyplaceordistrictintheUnitedKingdom".InordertomeetthedifficultiesoftheUnitedKingdomitissuggestedtoaddasafinalparagraphoftheRecommendationthatsuchregulationswouldnotbeinconsistentwiththisRecommendation.11a:TheUnitedS

7 tatesdeclaresthatthissuggestionappearsto
tatesdeclaresthatthissuggestionappearstobecoveredbyoneoftheexceptionsintheTariffActandthereforeappearstobeacceptableas.ageneralproposal.11b:GermanyisinfavouroftheICCproposal.TheUnithedStatesdeclaresthatcertaincasesmaypossiblybeeligibleforexemptionfranthemarkingrequirement,butthelawdoesnotprovideageneralexemptionforspareparts.11c:Thisrecommendationistobeunderstoodinthelightofparagraph21oftheW.P.Reportconcerningthedeterminationofthevaluebytheimportingcountry.Germanyisinfavourofexemptingproductsoflittlevalueanddrawsattentiontothefactthatalreadyin1931aGroupofExpertschargedbytheEconomicCommitteeoftheLeagueofNationstoexaminethequestionofmarksoforigin,recommendedthatsamples.oflittlevalueshouldbeexemptedfromthemarkingrequirement.AttentionisalsodrawntothefactthattheCONTRACTINGPARTISdecidedin1952thatthesubjectofmarksoforiginforimportedgoodsshouldbestudied,andthat"thetreatmentofsamplescouldbeexaminedasapartofsuchastudy".(BISD,FirstSupplement,page98,paragraph28).TheUnitedStatesreportsthatallgoodsunderthevalueof$10arefreedfromthemarkingrequirement.11d:TheICCdoesnotrecommendaspecialtreatmentofsamplesoflittlevalue,andintroducestheideathatallsamplesfallingundertheSamplesConventionshouldbefreedfranthemarkingrequirement. L/871Page7Germanyisinfavourofsucharecommendation.TheremarksbroughtforwardbyGermanyandreproducedunder11oalsoapplyinparttotherecommendationunder11d.TheUnitedStatesexplainsthatsuchproductshavetobemarkedunlessimportedundercircumstanceswhichjustifyanexception,12.Noi-commercialimportsshouldbeexemptedfromthemarkingrequirementincludingallimportswhicharenormallyfreedfromdutiesandenumer

8 atedinthenationalcustomslawsinthatcontex
atedinthenationalcustomslawsinthatcontext,suchasimportsofgoodsforpersonaluseinconsequenceofinheritances,trousseaux,etc.Original"objetsdart"shouldalsobefreedfranthemarkingrequirement.Basis.Paragraphs22andex23ofW.P,Report.Remarks:TheUnitedStatescouldagreethatproductsobviouslyImportedforthepersonaluseoftheimportershouldnotgenerallyberequiredtocontainamarkoforigin,13.Gcodsintransitandgoodsplacedinbondshouldbefreedfromthemarkingrequirement.Basis:Paragraph23oftheW.P.Report.Remarks:Germanyagreeswiththerecommendation.TheUnitedStatesreportsthatimports,ofthischaracterareexemptedfromthemarkingrequirement.14.Countriesshouldmakeprovisionsthatinexceptionalcasestheapplicationofamarkoforiginshouldbepermittedundercustomssupervisionintheimportingcountry.Basis:Paragraph8oftheW.P.Report.Remarks:Germanyagreeswithsucharecommendation.IntheUnitedStatestheregulationsandpracticeareincon-formitywiththisrule.15.There-exportationofproductswhichcannotbemarkedundercustomssupervisionshouldbepermittedwithoutpenalty.Basis:Paragraph25oftheW.P.Report.Remarks:Germanyagreeswiththisrecommendation.TheUnitedStatesnowpermitsthere-exportationofproductswithoutpenaltyiftheadditionofthemarkoforiginatthetimeofimportationisnotpracticable. L/871Page816.Penaltiesshouldnotbeimposedincontradictiontoparagraph5ofArticleIXi.e.forfailuretocomplywithmarkingrequirementspriortotheimportationunlesscorrectivemarkingisunreasonablydelayedordeceptivemarkshavebeenaffixedortherequiredmarking-hasbeen-intentionallyomitted,Basis:Paragraph24oftheW.P.Report.Remarks:Germanyagreeswiththerecommendation.TheUnitedStatespointsoutthatifimproperlymarked

9 goodsarenotreturnedwithinaspecifiedtime,
goodsarenotreturnedwithinaspecifiedtime,theUnitedStatesassessmentforfailuretocomplywithmarkingrequirementsisanadditionaldutyof10percent.Theremayalsobeapenaltybasedonthecircumstancesofthefailuretocomplywiththeconditionsunderwhichgoodswerereleased.17.Whenagovernmentintroducesasystemofmarking,ormakesitcompulsoryforanewproduct/andsuchmeasuresmaycreatedifficultiesforthetradersandmanufacturersconcerned/reasonablenoticeshouldbegivan,beforethe"newprovisionsenterintoforce,andthereshouldbeadequatepublicityforthenewregulations,inconformitywiththeprovisionsofArticleXofGATT.Basis:Paragraph26ofthe.W.P.Report.Itissuggestedthatthewordsinsquarebracketsmightusefullybecmitted.Remarks:Germanyagreeswiththerecommendation.TheUnitedStatesdeclaresthatreasonablenoticeandadequatepublicityarenowgiveninconformitywiththeaboverecommenda-tion.18.TheexportingcountrieswhichencounterdifficultiesduetothefactthatanimportingcountryisnotinapositiontocomplywithanyoneoftheaboverecommendationsshouldenterintoconsultationwiththeimportingcountryinaccordancewiththeprovisionsofArticleXXIIofGATTwithaviewtotheremovalofthedifficultiesencountered.Basis:UnitedKingdomsuggestion.(SeeUnitedKingdomRecommendationreproducedaboveinconnexionwithparagraph1.) L/871page9THECONTRACTINGPARTIESfinallyUNDERSTANDthatnocountryshallbeobligedtoalter:(a)anyprovisionprotectingthe"truth"ofamarkaimingtoensurethatthecontentofthemarkIsinconfomitywiththerealsituation;(b)anyprovisionwhichrequirestheadditionofamarkoforiginincaseswheretheimportedproductsbearatrademarkbeingorpurportingtobeanameortrademarkofanymanufacturer,dealerortraderoftheImportingcountr