WORLD TRADE
ORGANIZATIONG/RO/35
19 April 1999
(99-1559)
Committee on Rules of Origin Original:  English/
French/
Spanish
REPORT OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
TO THE COMMITTEE ON RULES OF ORIGIN ON
PROGRESS MADE AT ITS 16th SESSION
In conformity with paragraph 4 of the Report of the Committee on Rules of Origin to the
Council for Trade in Goods on the Harmonization  Work Programme (G/RO/25), the Chairman of the
Technical Committee on Rules of Origin submitted to the Committee on Rules of Origin, on
16 April 1999, a Report on progress made at the 16th Session of the TCRO.  The Report is herewith
circulated to Members.
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SUBJECT: Progress Report to the Committee on Rules of Origin following the 16th Session of
the Technical Committee on Rules of Origin  -  (held in Brussels from 1 to
12 March 1999)
1. The 16th Session of the Technical Committee on Rules of Origin was held in Brussels from 1
to 12 March, 1999.  The detailed results of this session appear in the Technical Committee’s Draft
Report (Doc. OC0010), which is being circulated fo r comment and is to be approved under the usual
procedures at the 17th Session to be held from 17 to 28 May in Brussels.
2. This past session was busy and productive.  By their energetic participation in the work
Members have again confirmed their commitment to achieving the objective of harmonization.  The
Technical Committee was able to take up all of the items on its Agenda, encompassing the overall
architecture (including general rules), certain remaining Basket 2 issues in chapter notes and headings,
and residual rules to be applied in particular product sectors.  Two unresolved questions are beingsubmitted to the Committee for decision, but the Technical Committee agreed that three other
questions having rather broad application across product sectors are to be retained until the end of the
17
th Session to examine further possibilities for consensus.
3. Very important further discussions were held during the 16th Session on architecture and
general rules.  Members of the Committee will recall that consensus was not reached during the 15th
Session on the application of primary rules, and that consequently the matter was referred to theCommittee for decision (see Referral Doc. 42.774
1).  The Technical Committee took note of the series
of questions posed to proponents of the various Options by Members of the Committee and
transmitted on 2 March 1999 as WTO document G/RO/W/41.  It being clear that these questions were
                                                     
1 Circulated as document G/RO/30.G/RO/35
Page 2
directed to individual Members, the Technical Committee decided that it would not offer a common
response; nevertheless, these questions were extremely helpful in providing focus to the 16th Session
discussions on architecture and general rules.
4. These discussions took up again the issues presented in Referral Doc. 42.7741,  first in respect
of the text for Rule 2 of Appendix 2, but also in th e expanded context of specific residual rules.  This
broader focus allowed  Members to examine the intentions underlying the respective positions and to
arrive at some common understandings.  In particular, and most significantly, the Technical
Committee agreed that a “single text” suggested by the Secretariat would constitute the basis for
further discussions.  The single text is reflected in Annexes O/2 and O/3 of the Draft Report of the
16th Session (Doc. OC0010).
5. Following the 16th Session some Members undertook informal consultations to deepen their
understanding in an effort to find a final compromise text for the overall architecture of the
harmonized rules of origin.  These exchanges of views have continued thus far through the
intersessional period, and I believe there may be important new possibilities for consensus.  I
understand that the Members concerned plan to consult widely with additional Members before the17
th Session.
6. Given the decision of Members at the 16th Session to proceed on the basis of a single text, and
the informal consultations which also have been conducted on the basis of a single text,  it would
appear that the views reflected in Options A,  B and C of Referral Doc. 42.7741 may have evolved
considerably.  Thus the positions set out in that document may no longer reflect accurately the
positions of some proponents.
7. In sum, the prospects remain good for a common understanding on  the key aspects of the
overall architecture relating to the application of primary and residual rules.  The settling of thisdifficult matter would leave the Technical Committee with a clear roadmap for completion of its tasks
under the harmonization work programme within a reasonable time.  Among the tasks remaining are:
completion of the other general rules; decisions on residual rules at a greater or lesser degree of
specificity; rules on mixtures and sets; and questions of presentation.  It should also be mentioned that
thus far the Technical Committee has retained all of the work results for Chapters 84 through 90 and
Chapters 93 through 97, although the unresolved issues have largely been prepared as referral
questions if no further progress is made in this area.
8. I am aware of the scope of the work left for both committees in this joint undertaking; I am
acutely aware of the number of technically complicated and difficult issues that the Technical
Committee on Rules of Origin (TCRO) has referred to this Committee.  I understand the enormity of
the technical analysis that must be carried out to ensure that all the issues remain up-to-date and have
not been significantly modified by subsequent tech nical and architectural decisions.  The TCRO will
soon be preparing its final referral package for your review.  The WCO Secretariat and the Technical
Committee will be in a position to assist the Committee on these unresolved issues and I would invite
the Committee to consider the arrangement under which this could be done.
9. At the 17
th Session (17 to 28 May) the Technical Committee will continue its consideration of
the overall architecture and, it is to be hoped, reach consensus on it.  The Technical Committee also
plans to discuss residual rules and remaining Bask et 2 issues in the agricultural (Chapters 1-24),
textile (Chapters 50-63) and machinery (Chapters 84-90) sectors.  I expect also that the Technical
Committee will return to Basket 2 discussions for Chapters 91-97.  Finally, I have asked Members tobe prepared to indicate their preferences regarding the categorization and arrangement of chapter
notes.  If consensus on this can be reached it would permit the WCO Secretariat to use the
                                                     
1 Circulated as document G/RO/30G/RO/35
Page 3
intersessional period to prepare revised presentations of all chapters for the TCRO Consolidated Text.
These revisions would reflect also the status of the CRO’s endorsements.
10. The Technical Committee looks forward to continued collaboration with the Committee.
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