Paragraph 4 of Appendix II of the original agreement provides that members submit their preferential rules of origin to the secretariat without delay, including a list of preferential regimes to which they apply, general judicial and administrative decisions concerning their preferential rules of origin. The secretariat distributes lists of information received and available to members. The most comprehensive definition of the rules of origin is the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention), which came into force in 1974 and was revised in 1999. In accordance with the specific Annex K of this Convention:[3], recognising the need for transparency in rules of origin laws, rules and practices; Appendix 2, the rules for the application of Appendix 2 follow the provisions of the matrix for products classified in chapters 1 to 97 of the harmonized system. At the beginning of each chapter, the negative standard, primary rules, residual rules and definitions can be defined. (i) Minimum percentage of value added for finished products (construction or direct verification): Manufacturing or processing operations in the country of origin must reach a certain level, i.e. the percentage of value they add to finished products corresponds to or exceeds a certain threshold for the latter to obtain its origin. This test requires consideration between the value of the content created at the regional or local level and the value of the final product. As a result, the rigour of the rules of origin would increase with the threshold of regional or national content. For example, a rule that imposes 40% regional value content will be stricter than a rule that requires 35%. (1) Recognising that some members, unlike non-preferential rules of origin, apply preferential rules of origin, members agree on the following. — minimal processes or processes that do not give themselves the origin of a credit. The non-preferential rules of origin are those that apply without a trade preference, i.e.
where trade is done on the basis of the most favoured nation. Not all countries apply specific legislation with respect to non-preferential rules of origin. However, certain trade policy measures, such as quotas, anti-dumping or “made in” labels, may require a determination of origin and hence the application of non-preferential rules. (iii) where the manufacturing or processing criterion is required, the transaction giving the origin of the product concerned must be accurately indicated; The Harmonization Work Programme (HWP) is more complex than originally envisaged in the agreement, which initially provided for the completion of the work within three years of its launch in July 1995. This work programme is ongoing. Validity: A provision setting the duration of a certificate of origin or declaration of origin (see proof of origin) applies from the date of its issuance. 1. For the purposes of Parts I to IV of this agreement, the rules of origin are deemed to be the laws, regulations and administrative provisions applied by a Member State to determine the country of origin of the goods, provided that these rules of origin are not linked to contractual or autonomous commercial regimes that result in the granting of tariff preferences beyond the application of Article I , paragraph 1, of the 1994 GATT.
