Prepared by for GIZ for the SADC Secretariat SADC

Transcript:Prepared by for GIZ for the SADC Secretariat SADC:
Prepared by for GIZ for the SADC Secretariat SADC EPA Rules of Origin SADC EPA Rules of Origin Session 9: Index of Technical Soundness v Defining the Index of Technical Soundness Rules of origin - often the main cause of low utilisation of autonomous trade preferences and FTAs. The existence of trade preferences does not automatically imply that the tariff preference is granted at the time of customs clearance. Tariff preferences are conditional upon compliance with rules of origin and its ancillary requirements such as documentary evidence and consignment requirements. There are accepted techniques of drafting adequate rules origin. But misunderstandings may occur when drafting rules of origin - may easily have negative effects once these rules, which may not reflect commercial realities and manufacturing capacity, have to be administered and applied in the field. Recent recommendations for rules origin which require 10% value added Some studies recommend rules of origin under EPA should be a change of tariff heading for all products. Some studies have suggested rules of origin could either be the CTH requirement at four-digit level, or a 35% value addition based on CIF input costs. EU-SADC EPA Rules of Origin Session 9: Index of Technical Soundness v Are the working or processing carried out on non–originating materials that confers originating status in column 3 equivalent to those in Column 4? EU-SADC EPA Rules of Origin Session 9: Index of Technical Soundness v Are the working or processing carried out on non–originating materials that confers originating status in column 3 equivalent to those in Column 4? EU-SADC EPA Rules of Origin Session 9: Index of Technical Soundness v The merits and limits of the change of tariff classification HS heading no. 18.01 Cocoa beans 18.02 Cocoa shells 18.03 Cocoa paste 18.04 Cocoa butter 18.05 Cocoa powder 18.06 Chocolate, etc. In this example, the HS reflects the manufacturing chain of a chocolate bar. The rule of origin for Chapter 18 is: Manufacture in which: all the materials used are classified within a heading other than that of the product; and the value of any materials of Chapter 17 used does not exceed 30 % of the ex–works price of the product The CTH requirement may be considered liberal because, for instance, breaking the cocoa beans to obtain the cocoa shells is an origin conferring operation; making butter from cocoa paste a manufacturing process, including refining; while purifying the