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You Are Here: Home > APEC Groups > Committee on Trade and Investment > Rules of Origin
 
 
Rules of Origin  

Rules of Origin are the laws and regulations that determine the economy origin of goods. Globalisation has made it is increasingly difficult to determine where a product "originally" comes from since raw materials and parts used to make finished goods are drawn from all over the world. Rules of Origin are important when implementing trade policy tools such as anti-dumping and countervailing duties, trade mark, and safeguard measures. The Committee on Trade and Investment Plenary works to harmonise these rules among APEC Member Economies.

 Achievements

APEC is developing model measures for RTAs/FTAs to encourage a coherent and consistent approach to the design and content of such RTAs and FTAs. Several chapters of such model measures including the one for Rules of Origin and Origin Procedures were endorsed by the Ministers Responsible for Trade in 2007.

APEC's model measures, chapters for Rules of origin and origin procedures include the following components:
  • the criteria for determining whether a good imported from another party qualifies for preferential market access
  • methods for calculating regional value content
  • rules for calculating value of materials
  • rules for calculating value of materials
  • the de minimis rule for deeming a good an "originating good"
  • the method for determining whether fungible goods or materials are originating goods
  • Sets out the method for determining whether accessories, spare parts and tools are originating goods
  • the method for determining whether sets of goods are originating goods
  • how packaging materials for retail sale are to be considered
  • how packaging materials for shipment are to be considered
  • how indirect materials are to be treated
  • criteria for the treatment of material that is self-produced
  • the rules for transit and transshipment of goods
  • the framework for consultation between the Parties
  • criteria for importers to make claims for preferential tariff treatment
  • exceptions to certification requirements
  • the framework for verification
  • obligations relating to importations
  • the definitions applicable to the chapter on rules of origin and origin procedures
These model measures reflect the general APEC principle of voluntarism. They are neither mandatory nor exhaustive. They are not in legal language that might be used in an agreement. The model measures are indicative examples to provide members with useful reference in negotiating RTA/FTA chapters.

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Current Activities

Several activities have taken place at the Committee on Trade and Investment (CTI) as well as at its sub-fora and industry dialogues.

In order to strengthen APEC's work in promoting high quality, comprehensive RTAs/FTAs, the Automotive Dialogue, the Chemical Dialogue and the Market Access Group with ABAC are working on rules of origin aiming at minimizing the impact of the 'spaghetti bowl' of FTAs/RTAs in the region.

CTI and the Senior Officials' Policy Dialogues on Identifying Convergences and Divergences in APEC's RTAs/FTAs, held in May 2008 in Arequipa, Peru, briefed the finding of the study of rules of origin and origin procedures in 20 FTAs among APEC members.

The Trade Policy Dialogue on Effect of Rules of Origin on Trade held in Lima, Peru in August 2008 helped member economies to better understand the challenges associated with differing interpretations for ROOs. Another Trade Policy Dialogue on the ROO is planned for 2009.

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Rules of Origin (ROO) - Key Contact
APEC Secretariat
Ms Hiroko Taniguchi
Director (Program)
E-mail: ht@apec.org

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Comparative Matrix on Rules of Origin
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1997 Compendium of Rules of Origin
(PDF,1925 Kb)