. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/RO/W/49
15 November 1999
(99-4903)
Committee on Rules of Origin Original:  English
PROPOSAL REGARDING COMPLETION OF THE
HARMONIZATION WORK PROGRAMME UNDER ARTICLE 9.2(a)
OF THE AGREEMENT ON RULES OF ORIGIN
Communication from India
The following communication, dated 29 October 1999, has been received from the Permanent
Mission of India.
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As discussed at the informal meeting on 28 October 1999, attached herewith is a proposal by
India for completion of the Harmonization Work Programme under Article 9:2(a) of the Agreement
on Rules of Origin for circulation to Members at the October 1999 informal and formal sessions of theCommittee on Rules of Origin (CRO).
Issues:
The objectives of the Agreement on Rules of Origin, inter alia , to harmonize and clarify rules
of origin and to ensure that rules of origin do not themselves create unnecessary obstacles to trade and
do not nullify or impair the rights of Member s under GATT 1994 are clearly set out in the Preamble
of the Agreement.
The objectives and principles of harmonizing rules of origin themselves are clearly set out in
Part IV of the Agreement.  The Committee on Rules of Origin was mandated to initiate the
Harmonization Work Programme as soon after the entry into force of the WTO Agreement as possibleand to complete it within three years of initiation.  The work programme was initiated on
20 July 1995.
Since this work programme did not achieve completion within three years, on 7 July 1998
Members agreed to the continuation of the Work Programme in accordance with the agenda andschedule contained in document G/RO/25.  In accordance with this schedule, the Technical
Committee on Rules of Origin has submitted the final results of its work to the CRO as contained in
document G/RO/37.  All residual work is required to be completed by the CRO itself.
The negotiations in the CRO on the disciplines to govern the application of rules of origin are
still ongoing, way beyond the original schedule set up by the Agreement.  In the meanwhile, the
interim arrangements that have been introduced by some Members are creating restrictive, distortive
and disruptive effects on trade, in particular, in sectors of export interest to developing country
Members.  Thus the delay in harmonizing the rules of origin is upsetting the balance of rights and
obligations.G/RO/W/49
Page 2
At the June 1999 meeting of the CRO, in light of  the final results received from the TCRO,
India had proposed, as supported by many Members, that the CRO should continue substantive
consideration of remaining issues at its June, July, September and October meetings in 1999 and that
the consideration of a deadline for the completion of the Harmonization Work Programme in the CRO
should be postponed to the end of the meeting of the CRO in October 1999, when Members wouldhave a better appreciation of the remaining work.
Proposals:
In continuation of its proposals made earlier, India proposes that the CRO should complete its
remaining work on harmonizing non-preferential rules of origin in a time-bound manner by
31 July 2000.  In the meanwhile, no new interim arrangements should be introduced.  Further, anyinterim arrangements introduced by any Member with effect from 1 January 1995 or any subsequent
date should be suspended with effect from 4 December 1999.
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