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Rules of origin facilitator

22nd February 2019

By: Riaan de Lange

     

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Talk about a powerful international trade trilogy alliance. You simply do not get a more powerful alliance than the World Customs Organisation, the World Trade Organisation and the International Trade Centre, which have banded together to develop and launch the Rules of Origin Facilitator, with the tagline: ‘Your gateway to trade agreements’.

Much is made of exports as the engine of economic growth, yet, somehow, when exports are talked about, the discussion neglects to mention trade agreements. This is something that the alliance wants to rectify – it wants to assist small and medium-sized enterprises (SMEs) in growing their exports through using trade agreements.

The Rules of Origin Facilitator is the first comprehensive global online resource on tariffs, trade agreements and rules of origin designed with SMEs in mind. The tool currently contains data on more than 150 trade agreements applied by more than 190 countries, as well as the nonpreferential regimes of the European Union, the US and Switzerland. The tool is continuously being expanded, with the ultimate goal being to cover all the more than 800 currently active free-trade agreements (FTAs) and preferential schemes. The tool’s website provides a list of the 800-plus regional trade agreements and preferential trade arrangements that are either in force, signed, under negotiation, in consultations or terminated. This is the first time that such a list has been published.

It takes just a few clicks for users to be able to determine the rates of customs duties for their products in foreign markets, the available customs duty savings, detailed rules-of-origin provisions and certification procedures. The tool is a global public good, which means it is absolutely free to use.

The Rules of Origin Facilitator aims to help SMEs increase trade by taking advantage of global trade opportunities in the form of low customs duty rates under trade agreements. The tool can also be used by policymakers, trade negotiators and economists.

The tool is remarkably simple to use. All you need is the commodity code (Harmonised System code, or HS code) and then to select one country or more – the export destination or destinations. At the press of a button, you obtain vital information about the available trade agreements, tariff benefits and product-specific rules of origin, as well as other conditions and the required documents.

Each rules-of-origin provision is linked to a bespoke glossary, allowing users to familiarise themselves with the purpose of the provision and practical examples of its application. A number of additional supporting resources are also available.

The ability to compare the rules-of-origin provisions displayed in a standardised way enables SMEs to conduct comprehensive market research without needing to search and read through hundreds of pages of complicated legal texts to find the applicable rules. The tool is constantly being improved and the data is monitored and updated regularly.

Each product-specific rules-of-origin criterion is coded into a universal classification system, based on the existing literature and common practice. The tariff and trade agreement information come from the Market Access Map – www.macmap.org.

If you are concerned that you need to be an advanced user, well, you do not need to worry. Should you be worried that you might not fully understand what is meant by an FTA, what rules of origin are, what a commodity code is, what an exporter should do, what an importer should do, or even how to use the tool, there is a section specifically devoted to just that.

Although the rules-of-origin provisions are continuously updated, the alliance aims to update these on an yearly basis, taking into account changes in HS versions, amendments and renegotiations, as well as phase-in periods.

If you are considering expanding your sales in foreign markets, you should look no further than the free Rules of Origin Facilitator as your first stop.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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