WORLD TRADE G/RO/11
23January 1997
ORGANIZATION(97-0243)
Committee onRules ofOrigin
SIXTH REPORT OFTHE TECHNICAL COMMITTEE ONRULES OFORIGIN
TOTHE COMMITTEE ONRULES OFORIGIN
Note bytheSecretariat
1. Inconformity withparagraph 2(c)ofArticle 9oftheAgreement onRules ofOrigin, the
Technical Committee onRules ofOrigin hassubmitted totheCommittee onRules ofOrigin its
Sixth Report. TheReport covers theresults ofthecontinuing workunder Phase IIoftheHarmonization
Work Programme andreflects theprogress oftheTechnical Committee through theSixth Session held
inBrussels from 16to20December 1996.
2. Theattached Report (WCO document 40.748) isherewith circulated toMembers, together
withtheletter oftransmission oftheChairman oftheTechnical Committee onRules ofOrigin.G/RO/11
Page2
Brussels, 17January 1997
Dear Mr.Osakwe,
Sixth Report totheCommittee onRules ofOrigin
Ihavepleasure inenclosing theSixth Report oftheTechnical Committee onRules ofOrigin
totheCommittee onRules ofOrigin.
Thisreport covers theresults ofthecontinuing work under Phase IIoftheharmonization work
programme andreflects theprogress oftheTechnical Committee through theSixth Session heldin
Brussels from16to20December 1996. Itistobenoted thattheReport oftheTechnical Committee 's
Sixth Session isnottransmitted atthistimebecause itistobeapproved during theSeventh Session
between 10to21February 1997.
TheReport issubmitted inaccordance withtheprovisions ofArticle 9.2(c) oftheAgreement.
Please accept, Mr.Osakwe, theassurance ofmyhighest consideration.
Yours sincerely,
R.Janeczko
ChairmanG/RO/11
Page3
SIXTH REPORT OFTHE TECHNICAL COMMITTEE ONRULES OFORIGIN
TOTHE COMMITTEE ONRULES OFORIGIN
1. TheTechnical Committee onRules ofOrigin helditsSixth Session inBrussels from
16to20December 1996. During thissession, theTechnical Committee continued itsharmonization
workonrulesoforigin forparticular products andproduct sectors. Italsoexamined means ofmodifying
itsworking method withaviewtospeeding upitswork in1997.
Continuation oftheharmonization work programme
2. Inthisrespect, three points require particular emphasis:
(a) TheTechnical Committee examined, forthefirsttime, therules oforigin proposed
forthegoods ofthefollowing Chapters: thelastpartofChapter 18(headings 18.04
to18.06), Chapters 19to24,30to33(headings 33.01 to33.04), 50and51.The
results ofthatwork aresetoutinAnnexes C/1,C/2,D/1,D/2,G/1andG/2tothe
Report ontheTechnical Committee 'sSixth Session. AcopyofthatReport isenclosed,
forinformation1.
Forcertain goods, theTechnical Committee decided thatimportant issues hadbeen
raised requiring assignment toBasket 2andhence afurther examination atalater
session.
(b) TheTechnical Committee alsonoted thatitwasrepeatedly having tore-examine rules
oforigin proposed forspecific products orproduct groups with recourse to
supplementary criteria which, under astrict application oftheAgreement onRules
ofOrigin, should beexamined inPhase IIIoftheharmonization programme. In
practice, theTechnical Committee found itself obliged tolookatsuchcriteria since
members 'proposals frequently established acloselinkbetween thecriteria ofPhase II
andPhaseIII:proposalofachange-of-tariff-classificationruleaccompaniedbyarequest
forsupplement criteria.
Indeed, thespecific-process criteria andadded value havealready beenputforward
onseveral occasions bycertain members assupplementary criteria, either inaddition
toachange-of-tariff-classification ruleorinlieuofsucharule. There has,moreover,
already beendiscussion onthisissue.
TheTechnical Committee noted that,inorder properly tounderstand theproposals,
itisindeed necessary thatmembers beallowed tosetoutallthereasons underlying
theirstandpoints, andalsothefullrange ofrules theyenvisage: itistherefore very
difficultcompletelytoseparatetheexaminationofthesetwophasesoftheharmonization
programme.
Taking noteofthis,theTechnical Committee pointed out,however, thatthetimenow
given overtotheexamination (albeit partial) ofcertain supplementary criteria belonging
toPhase IIIwould beofbenefit subsequently because thedifficulties ofthatnextstage
were thusalready putintosome kindofperspective.
1TheReportoftheTechnicalCommittee'sSixthSessionistobeapprovedduringtheSeventhSessionbetween
10and21February 1997.G/RO/11
Page4
(c) Finally, various questions suitable for"horizontal" or"residual" rulesweredealtwith
during theexamination oftheparticular products andproduct groups referred toabove.
Forexample, during itsexamination oftheaforementioned Chapters, theTechnical
Committee encountered numerous instances ofmixed (blended) products forwhich
a"horizontal" rulemight beenvisaged.
TheTechnical Committee alsoheldanexchange ofviews ontheneed, incertain cases,
tohave"residual" rules. Given thatithadtobepossible toassign allgoods anorigin,
suchrules would replace orsupplement unsatisfactory orinadequate rules based on
thechange-of-tariff-classification criterion oronsupplementary criteria.
Measures envisaged tospeed upthework programme (working method)
3. Twomajor points canbemade concerning thediscussions onthismatter attheTechnical
Committee 'sSixth Session:
(a) Firstly, theTechnical Committee noted withsatisfaction thestatement bytheWCO
Secretary General thattheSecretariat would continue itsefforts toensure timely
completionoftheimportantOriginProject,andthatfoursessionscouldbeheldin1997.
Italsonoted thattheSecretary General hadurged bothCommittees nottorelaxintheir
endeavours toco-operate effectively andhadsuggested thattheTechnical Committee
consider adopting a"dual-track" approach sothatwork inprogress anddifficult issues
setaside forlaterexamination could betackled inparallel; forthispurpose, additional
meetings(workinggroupsorinformalmeetings)couldbeaddedtotheWCO'scalendar.
(b) Encouraged bytheSecretary General 'swords, theTechnical Committee helda
wide-ranging exchange ofviews toexplore possible newavenues forspeeding upits
work in1997. Several delegations suggested awhole series ofmeasures withaview
topreparing, forthecoming year, asubstantially different working method.
TheSecretariat wasinstructed toprepare inconjunction withtheChairman adocument
setting outallthose suggestions, withtheiradvantages anddisadvantages, sothatthe
Technical Committee could giveaproperly informed opinion onthefinalization of
anaction planandcalendar atitsFebruary 1997 session. TheTechnical Committee
hoped inthiswaytohavethebestpossible chance ofcompleting itswork within the
stipulated timeframe.
Future work
4. TheSeventh Session oftheTechnical Committee willbeheldinBrussels, from 10to
21February 1997.G/RO/11
Page5
Provisional nature oftheReport ontheTechnical Committee 'sSixth Session
5. Inorder thattheentire timeavailable fortheSixth Session could begiven overtocontinuation
oftheharmonization work programme andtoexamining theworking method for1997, theTechnical
Committee decided thattheReport onthesession would notbeadopted during themeeting, butat
thenextsession. Consequently, theappended Report2isprovisional innature anditwillbereplaced
bythefinalreport.
2Available forconsultation intheSecretariat (Market Access Division).