RESTRICTEDWORLD TRADE
ORGANIZATIONG/RO/M/24
2 September 1999
(99-3644)
Committee on Rules of Origin
MINUTES OF THE MEETING OF 23 JULY 1999
Chairman:  Mr. A.R. Moroz
The meeting was convened by WTO/AIR/1131.  The purpose of this meeting was to sum up
the results of the informal meetings which took place on 12, 13, 15 and 23 July 1999 in order to
discuss the overall architecture of the harmonized rules of origin as well as product-specific rules of
origin for chapters 25-27, 44-49 and 71.  The following four issues were discussed:  (i)  overall
architecture of the harmonized rules of origin;  (ii)  product-specific rules of origin for chapters 25-27
and 71;  (iii)  product-specific rules of origin for chapters 44-49;  and (iv)  date of the next meeting.
1. Overall architecture of the harmonized rules of origin
1.1 The Chairman stated that the text of the overall architecture of the harmonized rules of origin
(G/RO/37, pp. 137-163) had been revised, reflecting the work done in the informal meetings of the
CRO in July.  The CRO took note of the revised text which had been circulated as document
G/RO/W/43.
2. Product-specific rules of origin for chapters 25-27 and 71
2.1 The representative of the Philippines, coordinator for the informal plurilateral discussions on
chapters 25-27 and 71, stated as follows:
"(1) A plurilateral meeting was held on 20 July 1999.  The invitation to the meeting was
sent to all Members and was attended by 12 Members, namely:  Australia;  Brazil;  Canada;
Chile;  EC;  Hong Kong, China;  India;  Japan;  Mexico;  Philippines;  Switzerland;  and the
US.
(2) The basic document used for the meeting was G/RO/39 issued on 6 July 1999.  This
document was distributed to all Members.
(3) Following intensive deliberations and th e spirit of compromise and flexibility that
was demonstrated by most of the 12 Members who participated in the meeting, I am pleased
to report the outcome of the plurilateral meeting as follows:G/RO/M/24
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On chapters 25-27 (pp. 3-11 of G/RO/39):
Issue No. 1
No consensus was reached but several delegations stated that they were flexible.    It
was agreed that more detailed answers to the following technical questions would assist the
deliberation of the group at another meeting to be agreed in the CRO:
- what is the percentage (value or weight) of clinker used for the production of cement?
- what operations are involved in the grinding of clinker?
- what materials are added to or mixed with clinker for the production of cement?
Issue No. 2
Consensus was reached for option B.
Issues Nos. 3-6
Consensus was reached on option A in the meeting of the CRO held on 10-21
November 1997.  This consensus was reflected on page 7 of document G/RO/M/12.
Issue No. 7
No consensus was reached but several Members stated that they were flexible.  It was
agreed to continue examination of this issue at another meeting to be agreed the CRO.
Issue No. 8
There was growing consensus towards option A.
Issue No. 9
There was growing consensus towards option A.
Issue No. 10
There was growing consensus towards option B.
On chapter 71 (pp. 72-76):
Issue No. 1
No consensus was reached but several Members stated that they were flexible.  It was
agreed to continue examination of this issue at another meeting to be agreed by the CRO.
Issue No. 2
No consensus was reached but several Members stated that they were flexible.  Some
Members agreed to consult again with a view to limiting the issues between options A and B.It was agreed to continue examination of this issue at another meeting to be agreed by the
CRO.G/RO/M/24
Page 3
Issue No. 3
No consensus was reached.  Some Members needed more time to clarify technical
questions.  It was agreed to continue examination of this issue at another meeting to be agreed
by the CRO.
Issue No. 4
No consensus was reached.  One Member made a new proposal for pearls.  It was
agreed to continue examination of this issue at another meeting to be agreed by the CRO.
Issue No. 5
No consensus was reached. Several delegations stated that this issue should be
considered together with other horizontal issues in chapters 82-90.  It was agreed to continue
examination of this issue at another meeting to be agreed by the CRO.
(4) Conclusion/observation
At the conclusion of the plurilateral meeting, several Members suggested that in order
to sustain the momentum that was achieved in  this meeting, another plurilateral meeting on
the same chapters be scheduled in the context of the September meeting of the CRO.
As rapporteur for this meeting, I believe that consensus can eventually be achieved if
the same spirit of flexibility and compromise can be demonstrated by all Members."
2.2 The representative of Morocco reserved his position on issues Nos. 2-6 concerning
chapters 25-27.2.3 The Chairman stated that the CRO had already reached consensus on Issue Nos. 3-6 in the
meeting of 10-21 November 1997.  The CRO agreed that the issues on which consensus had been
reached should not be reopened at the level of the CRO, keeping in mind, however that in accordance
with Article 9.3(b) of the Agreement, the CRO should finally consider the results of the
Harmonization Work Programme in terms of their overall coherence.
2.4 The CRO took note of the statements made.
3. Product-specific rules of origin for chapters 44-49
3.1 The representative of Switzerland, coordinator for the informal plurilateral discussions on
chapters 44-49, summarized the results of the discussions held on 19 July 1999 among interested
Members as follows:
"Issue No. 1
There was a suggestion that the operation "finger-jointing" be further split up out of
the present split heading of "planed, sanded, or finger- or end-jointed" woods.  Members
agreed to consider this suggestion at the ne xt meeting of the CRO and to continue their
examination of remaining operations at that meeting of the CRO.G/RO/M/24
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Issue No. 2
There was a growing consensus towards option B.
Issue No. 3
Members did not reach consensus and agreed to continue their examination of this
issue at the next meeting of the CRO.
Issue No. 4
Members did not reach consensus and held strong positions on both sides. Some
concerns about consistency  in option A was expressed by some delegations.
Issue No. 5
There was a growing consensus towards option A, considering that the process of
coating was not done stand-alone and a CTH would therefore be sufficient.
Issue No. 6
There was a suggestion that the origin criterion for heading 44.14 be "CTH, except
from woods cut to size of heading 44.09", and that the origin criterion for 44.15 be "CTH,
except from woods cut to size of headings 44.07 and 44.09".  Members did not reach
consensus and agreed to continue their examination of this issue at the next meeting of the
CRO.
Issue No. 7
Members did not reach consensus on assembly. One delegation pointed out that
issues 6 and 7 demonstrated the different feeling of many delegations about simple and
complex assembly operations. Members agreed to continue the examination of this issue at
the next meeting of the CRO.
Issue No. 8
There was a growing consensus towards option B.
Issue No. 9
There was a growing consensus towards option A.
Issue No. 10
Members did not reach consensus. However, several delegations stated that they were
flexible because these operations were usually not carried out as stand-alone operations. A
CTH could therefor be sufficient to express the last substantial operation. Members agreed to
continue their examination of this issue at the next meeting of the CRO.
Issue No. 11
There was a suggestion to amend the origin criteria in option A to “CTH or change
within heading 4901 by binding” to clarify the position of option A.  This suggestion wasG/RO/M/24
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made as a matter of consistency because the CTH-rule allowed the binding operation.
Members did not reach consensus and agreed to continue examination of this issue at the next
meeting of the CRO."
3.2 The CRO took note of the statements made.
4. Date of the next meeting
4.1 The CRO agreed to hold informal meetings from 27-30 September 1999 in order to discuss
the "overall architecture of the harmonized rules of origin", as well as product-specific rules to be
discussed at plurilateral meetings among interested Members.  The dates of 20-24 September 1999 are
open for interested Members to hold bilateral and open-door plurilateral meetings to discuss product-
specific rules and other issues related to the HWP.  Three Members have already indicated theirintention to hold open-door plurilaterals on the following product-specific rules:  Chapters 25-27
(mineral products);  Chapters 28-40 (chemicals);  Chapters 44-49 (wood and paper);  and Chapter 71
(precious stones and metals).  Members holding plurilaterals should inform the Secretariat as soon as
possible.  The CRO will hold a formal meeting on 1 October 1999.
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