The WTO agreement on  
RULES OF ORIGIN  
Informal meeting of the Committee on 
Rules of Origin  
13 September 2013  
Objectives of this presentation  
Brief reminder about the main obligations and other provisions 
contained in the WTO Agreement on Rules of Origin:  
1.Objectives  
2.Scope  
3.Harmonization of non -preferential Rules of Origin  
4.Disciplines during the transition period  
5.Other provisions  
6.Overview of current notifications  1. OBJECTIVES  
What does it try to achieve?  
Premise : Clear and predictable ROO and their application 
facilitate international trade. Therefore :  
Ensure that ROO themselves do not create unnecessary 
obstacles to trade  
Ensure that ROO do not impair Members’ rights under the 
GATT 1994  
Ensure that ROO are applied in an impartial, transparent, 
predictable, consistent and neutral manner  
Harmonize and clarify ROO to provide greater certainty in 
the conduct of world trade  2. SCOPE  
Which measures does it apply to?  
ARTICLE 1.1  
ROO = laws, regulations, administrative 
determinations of general application  
Applied by any Member to determine the 
country of origin of goods  
Which are not related to the granting of tariff 
preferences; that is, NON -preferential  2. SCOPE  
Which measures does it apply to?  
ARTICLE 1.2  
Include all ROO used in non preferential 
commercial policy instruments , such as:  
MFN treatment (import duties);  
Anti-dumping and 
countervailing duties;  
Safeguard measures;  
Origin markings;  Quantitative restrictions or 
tariff quotas;  
Government procurement; 
and,  
Trade statistics  3. HARMONIZATION  
Establish common ROO through a work programme  
Establishment of a work programme   
Initiated as soon as possible, completed within 3 years  
CRO and TCRO jointly develop HRO  
Must develop definitions for wholly obtained products, 
minimal operations  
Substantial transformation to be defined as change in 
tariff classification and supplemented with other 
criteria where necessary (ad -valorem percentages or 
manufacturing or processing operations)  
Article 9  3. HARMONIZATION  
Establish common ROO through a work programme  
Principles  guiding the work programme   
HRO apply to all purposes set out in Article 1  
HRO should be objective, understandable, predictable, 
coherent  
HRO should be based on a positive standard and should not 
be used as instruments to promote trade objectives  
Based on the country where a product was wholly obtained 
or where the last substantial transformation occurred  
Results will be an Annex to the ARO  
Article 9  4. TRANSITIONAL PERIOD  
Obligations until the HWP is completed  
“Members shall” : 
a) clearly define their ROO  
b) not use ROO as instruments to pursue trade objectives either 
directly or indirectly  
c) not use ROO in a way that creates restrictive, distorting or 
disruptive effects on international trade  
d) not apply ROO to import / exports that are more restrictive 
than the rules applied to domestic products or that are 
discriminatory  
e) administer ROO in a consistent, uniform, impartial and 
reasonable manner  
Article 2  4. TRANSITIONAL PERIOD  
Obligations until the HWP is completed  
f)Shall base their ROO on a positive standard (negative 
standard for clarification or residual cases only)  
g)Shall publish promptly their ROO – GATT Art. X  
h)Upon request, shall issue determinations of origin in 
not more than 150 days. Decisions must remain valid 
for 3 years  
i)Shall not apply changes retroactively  
j)Shall make available an independent judicial, arbitral 
or administrative review of decisions  
k)Shall treat all information confidentially  
Article 2  5. Other provisions  
The WTO Committee on Rules of Origin  
Affords Members an opportunity to consult  
May request information, advice or other work from the TCRO as 
appropriate  
Considers TCRO recommendations on the HWP to endorse them  
Considers the overall coherence of the results of the HWP  
Reviews annually the implementation and operation of the ARO: before 
and after the harmonization + notifications, disputes  
Informs annually the CTG about developments  
Proposes amendments to the Agreement to reflect the results of the HWP  
Considers amendments to HRO in collaboration with the TCRO  
Meets as necessary, but at least once a year  
 Articles 4, 6 and 9  6. NOTIFICATIONS  
What are the ROO being applied by Members?  
Each Member shall provide to the Secretariat […] 
its rules of origin […] and modifications  
Article 5 of the Agreement (Non -Preferential)  
Paragraph 4 of Annex II (Preferential)  
In addition, decision to also circulate rules of 
origin as notified to the WTO Committee on 
Regional Trade Agreements (CRTA) and the 
Committee on Trade and Development (CTD) 
(G/RO/M/59)  As of 23 August, 87* 
Members had notified Rules 
of Origin to the CRO  
*Total 131 Members. The EU(28) is counted as one member  Members having submitted notifications to the CRO  
A third of WTO 
Members have 
non-preferential 
rules of origin in 
effect (41 
Members).  
 
Another third of 
Members do not 
(44 Members)  APPLY NP ROO  APPLY P ROO  47%   6% 
Africa  
Caribbean  Outstanding notifications - CRO  26% of WTO Members* 
have not notified their ROO  
to the Committee  
    *Total 131 Members. The EU(28) is counted as one member  Information about non -preferential 
ROO is missing for 48 Members  
Preferential Rules of Origin have not 
been notified to the CRO by 37 
Members  150
95' 96' 97' 98' 99' 00' 01' 02' 03' 04' 05' 06' 97' 08' 09' 10' 11' 12' 13'Non-preferential ROO
Preferential ROO
TotalMembers having submitted notifications to the CRO  
Members shall provide to the Secretariat  as soon as 
possible their existing or new preferential rules of 
origin…  
- the Agreement on Rules of Origin -  
Members’ last notification (by year)  
*94 Members has notified Preferential ROO  
 45%   
of the Rules notified were 
submitted 13 years ago  7. Other provisions  
The WCO Technical Committee on Rules of Origin  
Created under the WCO (CCC)  
Shall carry out the technical work related to the HWP  
Examine technical problems arising from the 
administration of ROO and provide opinions  
Provide advice on origin determination  
Prepare periodic reports on the operation of the ARO  
Review annually technical elements  
May request information, advice or other work from 
the CRO as appropriate  
Meets as necessary, but at least once a year  
Articles 4, 6, 9, Annex I  8. PREFERENTIAL ROO  
Are there obligations regarding Pref. ROO?  
In a “Common Declaration”, “ Members agree to” : 
Ensure that their ROO are clear  
Ensure that their ROO are based on positive standards  
Base their ROO on a positive standard (negative standard for clarification 
or residual cases only)  
Publish promptly their ROO – GATT Art. X  
Upon request, issue determinations of origin in not more than 150 days. 
Decisions must remain valid for 3 years  
Refrain from applying any changes retroactively  
Make available an independent mechanism for the judicial, arbitral or 
administrative review of decisions  
Treat all information confidentially  
Promptly notify their Pref. ROO to the WTO Secretariat  
 
 
 
 Annex II