Rules of Origin

Goods origin rules represent the fixed system (of certain criteria) to define the place the goods have been produced; in other words, identifying the goods national origin. Significance of goods country of origin is explained by the fact that customs duties and restraints  in some cases depend on import sources. Rules of represent an important part of   trading rules due to  practice of discrimination between 0065porting countries: quotation, preferential customs duties rates, anti-dumping actions, etc. Apart from the above said, the rules of goods origin are applied both to statistic goals and to identification of goods origin to use it in goods marking. All that becomes complicated due to globalization and possibility of producing and processing the goods in different countries till their entry to the point of destination. There exist different practices of  exercising the rules of goods origin.  Along with the fact that requirements to sufficient goods  processing    have been universally recognized some countries  apply requirements to goods tariffs classification change, others to  – ad valorem principle, others to production criteria. 

 Regulation in the frame of WTO

 Agreement on the goods origin rules (hereinafter referred to as WTO Agreement on  origin rules) is the basic principle in the sphere of  establishing the rules for goods origin identification in the frame of WTO. Present Agreement  develops the provisions contained in  the Convention on simplification and harmonization of customs procedures. To a certain degree it has concept-based character.

WTO Agreement on  goods origin rules requires from WTO members to be transparent upon elaboration of goods origin rules, in order they have not restraining, destroying,  distorting effect on  international trade. Given rules shall be exercised gradually, uniformly, fairly and expediently. Apart from that  the rules of goods origin shall be based upon «;positive standard», i.e. they shall specify what the goods origin is.

In the long-term perspective , WTO Agreement on  the goods origin rules is aimed at (harmonized) rules of goods origin among all WTO members. In the result of which goods origin common rules shall be applied  under any circumstances except the conditions of preferential trade. Nevertheless the work in that direction is being implemented slowly and currently the WTO members can’t reach the consensus concerning the denoted issue.