RESTRICTEDWORLD TRADE
ORGANIZATIONG/RO/W/26/Add.1
23 September 1998
(98-3662)
Committee on Rules of Origin
IMPLEMENTATION OF ARTICLE 2(h) OF THE
AGREEMENT ON RULES OF ORIGIN
Note by the Secretariat
Addendum
1. The Committee on Rules of Origin, at its meeting on 3 October 1997, mandated the
Secretariat to conduct a survey of Members' practices with reference to Article 2(h) as well asparagraph 3(d) of Annex II of the Agreement.  Members were requested to provide the Secretariatto the extent possible with the following information:
1. Where in the legislation of your country are the obligations arising from the above
mentioned provisions implemented?
2. Are origin assessments provided by the authorities of your country within 150 days
after receipt of a request?
3. How long after the date of issuing are origin assessments valid?
4. What procedures have to be followed by exporters, importers or other persons to
obtain an advance origin assessment?
2. As agreed by the Committee, at its meeting on 16 March 1998, information provided by
Members by that date has been circulated in document G/RO/W/26.  The Secretariat circulatesherewith additional information provided by Members thereafter.G/RO/W/26/Add.1
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REPLIES TO SURVEY
Bangladesh
Reply to question 1:
Obligations arising from Article 2(h) and paragraph 3(d) of Annex II of the Agreement on
Rules of Origin are being implemented as follows:
(a) (i) For import of goods into Bangladesh for which preferential treatment has been granted by
Bangladesh, Standard Rules of Origin have been laid down in the Public Notification (dated27 May 1997) of the National Board of Revenue (NBR), Ministry of Finance, Government of thePeople’s Republic of Bangladesh.  The Notification lays down procedures for implementingprovisions relating to tariff preferences granted by Bangladesh to specified products originating in abeneficiary country enjoying these preference s under a bilateral or  multilateral agreement.
(ii) For export of goods from Bangladesh for which Bangladesh has been granted preferential
treatment by importing countries under various agreements/schemes:  origin certification is done asper requirements and obligations of the respective agreements/schemes of the importing countries.
(iii) Origin certificates in both these cases ((a) (i) and (ii) above) are issued by the Export
Promotion Bureau (EPB) of the Government of Bangladesh (GOB).
(b) For goods exported from Bangladesh having no tariff preference in the importing country:
certification for textile products  for export to EU countries is done by the Export Promotion
Bureau;  for the rest, certifying authority is the respective Chamber of Commerce as per directivesof the Government.
Reply to question 2:
Yes.Reply to question 3:
Three years, for cross-verification and administrative purposes.Reply to question 4:
An advantage origin assessment may be obtained from the competent authority on providing
proof of production of the product in question along with information on inputs used as well asevidence relating to the fulfilment of the rules of origin requirement of the relevant agreement orscheme.  The competent authority may conduct a spot verification, if deemed necessary by it.G/RO/W/26/Add.1
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Hungary
Reply to question 1:
In our legislation and rules there is no specific commitment for mandatory issuance of
origin assessment.  The introduction of this new element is going to take place as of1 January 1999.
Reply to questions 2-4:
Upon request for the assessment of origin, the answer must be provided within 30 days.  An
answer to such request relates to a concrete question and has no binding nature nor does it serve asa proof before court or other authorities.
Madagascar
In practice, Malagasy exporters do not request assessments, but use either the General System
of Preferences (GSP – Form A) or the EUR 1 Movement Certificate.  They submit the declaration
together with the appropriate certificate of origin delivered by the Chamber of Commerce to bestamped by customs.
For imports, verification of origin takes place on request by the foreign customs
administration, in Europe, in the framework of the mutual administrative assistance arrangement in
force.  Where appropriate, the Malagasy Customs Administration conducts a subsequent verificationof origin (EUR 1 example) within a period of six months.
Malta
Reply to question 1:
Malta has no non-preferential rules of origin of its own.  However Malta is willing and ready
to adopt the new set of rules of origin which are being prepared by the WTO within the framework of
the GATT Agreement.
As regards preferential rules of origin as in Annex II of the Agreement on Rules of Origin,
Malta applies the criteria as laid down in the EEC/Malta Association Agreement, establishing an
association between the EEC and Malta, which was signed on 5 December 1997, as published in
Official Journal 61, dated 14 March 1971, and in 1/89 of the EEC-Malta Association Council of
20 March 1989 amending, as a consequence of the introduction of the Harmonized System, Protocol
No. 2 concerning the definition of the concept of originating products and methods of administrative
cooperation, as published in Official Journal L217, dated 27 July 1989.
Reply to question 2:
To date Malta did not apply any trade policy instruments (anti-dumping legislation, quotas
etc.) that would require the application of non-preferential rules.  As Malta has no legislation onnon-preferential rules of origin, the time-limit of 150 days is not yet in force.  If and when the relative
legislation is introduced, Malta will fulfil all the conditions laid down by the WTO, including those on
non-preferential rules of origin.G/RO/W/26/Add.1
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Reply to question 3:
Origin assessment in the case of preferential rules of origin is provided within 150 days from
application.  In the case of preferential rules of origin, an application is submitted by exporters and
normally the certificate of origin is processed within days.
Reply to question 4:
In requests for preferential origin assessments manufacturers or exporters normally submit
documentation to Customs just a few days before the goods are exported.  In cases of new goods
being manufactured a request is submitted in writing for consideration by Customs.  Following the
necessary controls by Customs, a written reply is provided to the applicant concerned.
Mexico
Reply to question 1:
As regards non-preferential origin assessments, in Article 2(h) of the Agreement on Rules of
Origin, which forms part of the Decree Enacting the Final Act of the Uruguay Round of Multilateral
Trade Negotiations and the Agreement Establishing the World Trade Organization, published in the
Federal Official Journal of 30 December 1994 (Uruguay Round Decree).
In the case of preferential rules of origin, in addition to Article 3(d) of the Agreement on
Rules of Origin of the Uruguay Round Decree, in  Article 509 of the North American Free Trade
Agreement (NAFTA), Article 6-10 of the Free Trade Agreement between the United Mexican States
and the Republic of Costa Rica (Mexico-Costa Rica FTA), Article 7-10 of the Free Trade Agreement
between the United Mexican States, the Republic of Colombia and the Republic of Venezuela
(G3-FTA) and Article 6-10 of the Free Trade Agreement between the United Mexican States and theRepublic of Bolivia (Mexico-Bolivia FTA).  They are also to be found in Section VIII of the
Resolution establishing general rules for the implementation of the NAFTA customs provisions
(NAFTA Resolution);  Section IX of the Resolution establishing general rules for the implementation
of the customs provisions of the Mexico-Costa Rica FTA (Costa Rica Resolution);  Section VIII of
the Resolution establishing general rules for the implementation of the customs provisions of theG3-FTA (G3 Resolution);  and Section IX of the Resolution establishing general rules for the
implementation of the customs provisions of the Mexico-Bolivia FTA (Bolivia Resolution), which
form part of Mexican legislation.
Reply to question 2:
The time-limit for issuing origin assessments is 150 days in the case of non-preferential rules
of origin.
As regards assessments under preferential rules of origin, the time-limits are governed by
Article 3(d) of Annex II of the Agreement on Rule s of Origin of the Uruguay Round Decree, as well
as Rule 83 of the NAFTA Resolution, Article 6-10(3)(c) of the Mexico-Costa Rica FTA,Article 7 -10(c) of the G3 FTA and Article 6-10(c) of the Mexico-Bolivia FTA.  Under our trade
agreements, the time-limit is reduced to a 120 days.
Reply to question 3:
The periods in the case of non-preferential rules of origin are those indicated in Article 2(h) of
the Agreement on Rules of Origin of the Uruguay Round Decree.G/RO/W/26/Add.1
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In the case of assessments under preferential rules of origin, Articles 3(d) of Annex II of the
Agreement on Rules of Origin of the Uruguay Round Decree, 509(4) of the NAFTA, Article 6-10(4)
of the Mexico-Costa Rica FTA, Article 7-10(4)  of the G3 FTA and Article 6-10(4) of the
Mexico-Bolivia FTA provide that the assessments are applicable as of the date of issuing of the
assessment or any subsequent date indicated therein until such time as amendments thereto or
cancellations thereof enter into force.
Reply to question 4:
In the case of assessments under non-preferential rules of origin, in the absence of a more
specific regulation these are governed by the Federal Administrative Procedures Act.  Article 15 of
the Act provides that applications must:
I. Be made in writing.
II. Indicate the name or business name of the person or persons submitting the
applications and, as the case may be, of their legal representative.
III. The address for service.
IV. The name or names of the persons authorized to accept service.V. The request being made.VI. The facts or grounds giving rise to the request.VII. The administrative body to which application is made.
VIII. The place a nd date of issue of the application.
IX. Be signed by the person(s) concerned or their legal representative, unless they cannot
or do not know how to sign, in which case they must affix their fingerprint.
X. Be accompanied by the documents accrediting their legal personality.
XI. In the specific case of origin assessments, all the elements necessary for issuing
assessments must be submitted, as provided for in Article 2(h) of the Agreement on
Rules of Origin of the Uruguay Round Decree.
In the case of assessments under preferential rules of origin in accordance with the NAFTA,
in addition to the foregoing requirements the appli cation must contain the necessary information to be
able to issue the advance ruling, as well as the following information:
I. The full name or business name and address of the importer, exporter and producer of
the good concerned, if known.
II. A statement by the applicant mentioning whether the good has been or is the subject
of a verification of origin, whether an advance ruling has been requested or obtained
with respect to such good, or whether the matter in question is currently before a
review or appeal body in any of the States members of the Treaty, indicating, as thecase may be, the status or result of the matter.G/RO/W/26/Add.1
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III. A statement indicating whether the good concerned has previously been imported into
the national territory.
IV. A full description of all the relevant facts and circumstances relating to the purpose of
the application, including a statement as to why an advance ruling is requested.
V. A general description of the good concerned.
Where necessary, the applicant must include the information required to determine the tariff
classification of the good concerned and also, where necessary, that of the materials used in the
production of the good, comprising the following:
I. A copy of any ruling that may have been issued to the applicant by the customs
authority determining the tariff classification for the good or material that is the
subject of the advance ruling, as the case may be.
II. A full description of the good or material including, as the case may be, its nature,
composition, state and characteristics, a description of its production process, adescription of the packing in which it will be imported, the destination, utilization or
end-use of the good or material, as well as its trade, common or technical name, and
drawings, photographs, catalogues, brochures or samples of the good or material.
Where the application concerns whether the non-originating materials used in the production
of the good comply with the applicable change in ta riff classification, the application must include the
following:
I. A list of the all the materials used in the production of the good, indicating for each of
them whether they are originating, non-originating, or of unknown origin.
II. A full description of each of the originating materials, indicating the basis for
considering them to be originating.
III. A full description of the non-originating materials or materials of unknown origin,
including their tariff classification, if known.
IV. A description of the production processes used in the production of the good, the
place where each process takes place, and the sequence in which these processes take
place.
Where an application for a ruling concerns compliance with a regional value-content
requirement, it must indicate whether it is based on the use of the transaction value method, the
net-cost method, or both.
Where an application for a ruling involves the use of a transaction value method, it must
include the following:
I. Sufficient information to calculate the transaction value of the good, relating to the
transaction of the producer of the good, adjusted to a free-on-board basis.
II. A list of all excluded costs that must be subtracted from the total cost.III. Sufficient information to calculate the value of all the non-originating materials or
materials of unknown origin used in the production of the good.G/RO/W/26/Add.1
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IV. The period over which the net-cost was calculated.
Where the application for a ruling concerns whether the transaction value of the good or
material is acceptable, the application must include sufficient information to allow an examination of
the factors affecting this determination.
Where the application for a ruling concerns an intermediate material, it must contain
sufficient information to determine the origin and value of the material.
The information mentioned in the three preceeding paragraphs must be submitted when
relevant for issuing an advance ruling confined to the calculation of an element of a regional
value-content formula.
In the case of rulings under preferential rules of origin in accordance with the G-3, Costa Rica
and Bolivia treaties, in addition to the requirements laid down in the Federal Tax Code the application
must contain the necessary information to be able to issue the advance ruling, as well as the
following:
I. Name or business name and address of the exporter, importer or producer of the good
concerned.
II. A statement by the applicant indicating whether the good has been or is the subject of
a verification of origin, whether an advance ruling has been requested or obtained
with respect to such good, or whether the matter in question is currently before a
review or appeal body in any of the States members of the treaty.
III. A statement indicating whether the good concerned has previously been imported into
the national territory.
IV. A full description of all the relevant facts and circumstances relating to the subject of
the application, including a statement as to why an advance ruling is requested.
V. A general description of the good concerned.
Where necessary, the applicant must include the information required to determine the tariff
heading of the good for which the application is made and, where necessary, that of the materials used
in the production of the good, comprising the following:
I. A copy of any ruling issued to the applicant by the customs authority determining the
tariff classification for the good or material for which the advance ruling is requested,
as the case may be.
II. A full description of the good or material including, as the case may be, its nature,
composition, state and characteristics, a description of its production process, adescription of the packing in which it will be imported, the destination, utilization or
end-use of the good or material, as well as its trade, common or technical name, and
drawings, photographs, catalogues, brochures or samples of the good or material.
Where the application concerns whether the non-originating materials used in the production
of the good comply with the applicable change in tariff heading, the application must include the
following:G/RO/W/26/Add.1
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I. A list of all the materials used in the production of the good, indicating for each of
them whether they are originating, non-originating or of unknown origin.
II. A full description of each of the originating materials, indicating the basis for
considering them to be originating.
III. A full description of each of the non-originating materials or materials of unknown
origin, including their tariff classification.
IV. A description of the production processes used in the production of the good, the
place where each process is carried out, and the sequence in which these processes
are carried out.
Where an application for a ruling concerns compliance with a regional value-content
requirement, it must indicate whether it is based on the use of the transaction value method, the
net-cost method, or both.
Where an application for an advance ruling involves the use of the transaction value method,
the application must include the following:
I. Sufficient information to calculate the transaction value of the good.II. Sufficient information to calculate the value of all non-originating materials or
materials of unknown origin used in the production of the good.
III. A full description of the originating materials used in the production of the good,
indicating the basis for considering them to be originating.
Where an application for a ruling involves the use of the net-cost method, the written
submission requesting the ruling shall include the following:
I. A schedule with sufficient information to determine the total cost of the good.
II. A schedule of the costs to be deducted from the total cost.
III. Sufficient information to calculate the value of all non-originating materials or
materials of unknown origin used in the production of the good.
IV. The basis for any cost allocation
V. The period over which the net cost was calculated.
The provisions relating to the calculation of ne t cost are not applicable for the G-3 FTA.  In
this case, to determine the transaction value the written submission requesting the ruling must include:
I. A schedule of all materials used in the production of the good, indicating the origin
and unit cost or value of each of them.
II. A schedule of the direct labour costs used in the production of the good.
III. A schedule of the direct costs incurred in the production of the good.G/RO/W/26/Add.1
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IV. A schedule of the charges for profits and overheads, indicating the procedure for
allocating them to the good.
V. The system of inventory valuation and the method of inventory valuation used for the
product.
In the case of these four treaties, the customs authority may request any additional
information to issue its rulings, in which case the applicant has 30 days from the day following
notification of the request to submit the information.
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