RESTRICTED  WORLD TRADE  
ORGANIZATION  G/RO/M/47 
13 October 2005 
 (05-4668) 
Committee on Rules of Origin  
  
 
MINUTES OF THE MEETING OF 23 SEPTEMBER 2005  
 
Chairman:  Ms. Vera Thorstensen
 
  
I.
 REPORT OF THE WORK OF THE TECHNICAL COMMITTEE ON RULES 
OF ORIGIN...................................................................................................................... .........1  
A. OTHER SECRETARIAT ACTIVITIES ................................................................................................1  
B. OTHER INFORMATION ..................................................................................................................2  
II. NOTIFICATIONS UNDER ARTICLE 5 AND PARAGRAPH 4 OF ANNEX II 
OF THE AGREEMENT ON RULES OF ORIGIN (G/RO/N/45-46) ..................................2  
III. TRANSITIONAL REVIEW UNDER PARAGRAPH 18 OF THE PROTOCOL 
OF ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA (WT/L/432, WT/ACC/CHN/49, G/RO/W/102 AND 105)...........................................................................2
 
IV. ANNUAL REVIEW OF THE IMPLEMENTATION AND OPERATION OF THE AGREEMENT ON RULES OF  ORIGIN (G/RO/W/103)...........................................3
 
V. ANNUAL REPORT (2005) TO THE COUNCIL FOR TRADE IN GOODS 
(G/RO/W/104) ................................................................................................................... ........4  
VI. ELECTION OF OFFICERS....................................................................................................4  
VII. OTHER BUSINESS................................................................................................................. .4 
A. DATES AND AGENDA FOR THE NEXT MEETING ............................................................................4  
 
 
I. REPORT OF THE WORK OF THE TEC HNICAL COMMITTEE ON RULES OF 
ORIGIN 
1.1 The representative of the WCO , Mr. P-P. de Vaucher, stated that the last session of the 
Technical Committee on Rules of Origin (TCRO) was held at the WCO headquarters in Brussels on 
31 January 2005, chaired by Ms. L. Ghrairi (Morocco). 
 A. 
OTHER SECRETARIAT ACTIVITIES  
1.2 As part of its permanent responsibilities, th e TCRO adopted its Fifth Periodic Report and its 
Fifth Annual Review of technical aspects of the implementation of the WTO Agreement on Rules of 
Origin (the Agreement) for the period from 1 Janua ry to 31 December 2004.  The Annual Review 
related to the technical aspects of the implementati on and operation of the Agreement.  It was very 
brief since the Agreement was not yet operational in  practice, and to date the TCRO had not been 
contacted with any specific problem or question.  The Periodic Report also related to the technical aspects and operation of the agreement, as well as containing information about the Secretariat’s 
activities and the TCRO’s work.  These two documen ts were on the WCO Members’ Web site under G/RO/M/47 
Page 2  
 
 the heading “Technical Committee on Rules of Origin - 23rd Session”.  The TCRO took note of the 
very interesting presentation by Mr. Eki Kim, a WT O official, who reported on the WTO’s work.  In 
particular, he pointed out that consultations had taken place thro ughout 2004 on the 94 technical 
issues, and that unofficial yet significant progress had been made in a number of specific sectors (cement, chemicals, etc.).  He also informed the TCRO about the “implications issue”, highlighting 
certain ambiguities in the concept of  “country of origin” between some provisions of the anti-
dumping, sanitary and phytosanitary, safeguard meas ures or origin marking agreements on the one 
hand, and the Agreement on non-preferential rules of or igin on the other.  The TCRO’s work had been 
relatively limited this year, as it depended on progr ess made in terms of the Committee on Rules of 
Origin's official work, and were awaitin g a solution to the implications issue. 
 
1.3 Between February 2004 a nd February 2005, the secretariat undertook four technical 
assistance activities linked to the harmonization of non- preferential rules of origin.  Three national 
seminars were held:  one in Cambodia (funded by Japan), one in Lebanon and one in Peru (funded by 
APEC).  A regional seminar was held in Hungary. 
  
B. 
OTHER INFORMATION  
1.4 The World Customs Organization now has 168 Me mbers.  Chad, the Republic of El Salvador 
and Saint Lucia have recently joined the WCO.  1.5 The Committee on Rules of Origin (CRO) took note
 of the report and expressed appreciation 
for the TCRO's continued valuable work. 
 
 
II. NOTIFICATIONS UNDER ARTICLE 5 AND PARAGRAPH 4 OF ANNEX II OF THE 
AGREEMENT ON RULES OF ORIGIN (G/RO/N/45-46) 
2.1 The Chairperson  recalled that since the last meeting the Secretariat had circulated two 
documents informing delegations of notifications  submitted by the Former  Yugoslav Republic of 
Macedonia and Hong Kong, China.  To date, 77 Memb ers had made notifications of non-preferential 
rules of origin and 83 Members had made no tifications of preferential rules of origin. 
 2.2 The Chairperson
 expressed concern that a number of Members had not yet complied with the 
notification requirements.  She urged Members who had not yet notified to do so as early as possible. 
 2.3 The CRO took note
 of the statement. 
  III. TRANSITIONAL REVIEW UNDER PARAGRAPH 18 OF THE PROTOCOL OF 
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA (WT/L/432, WT/ACC/CHN/49, G/RO/W/102 AND 105) 
3.1   The Chairperson
 noted that in accordance with paragraph 18 of the Protocol of Accession of 
the People's Republic of China, the CRO was to report to the Council for Trade in Goods on the 
outcome of the Review which would then repor t to the General Council.  The Chairperson  drew 
attention to two documents, G/RO/W/102 and 105, containing questions from the United States and 
the Separate Customs Territory of Taiwan , Penghu, Kinmen and Matsu, respectively. 
 3.2 The representative of China
 gave a brief introduction to China's implementation of the 
Agreement this year and responded to the two written questions mentioned above.  Firstly, as 
Members might have already been aware, Ch ina had introduced new rules of origin.  The Regulations 
of the People's Republic of China on  the Origin of Import and Export Goods  became effective as of  G/RO/M/47 
 Page 3 
 
 
 1 January, 2005.  The Regulations were promul gated on 3 September, 2004, well ahead of its 
implementation. With that information, China drew Members' attention to the fact that, in accordance 
with paragraph 2, Article 5 of the Agreement, Memb ers have no obligation of notification with regard 
to their modified or new rules of origin.  The pr ocedures China applied to in troduce those new rules of 
origin were in full conformity with the require ments of the Agreement.  Secondly, the above-
mentioned regulations, and their application, fully complied with the Agreement.  The principles used 
in the new regulations to determine the origin of  goods were basically the same as those notified to 
the Committee in document G/RO/53.  She added that  interested Members who had concerns, or who 
would like to have a better understanding of the Re gulations, might refer to  document G/RO/M/43 for 
a detailed explanation of the origin determination system. 
 
3.3 The representative of the United States  thanked the delegation of China for their explanation 
and for their willingness to engage in the transitio nal review process.  He then commented on the 
point that the Chinese delegation had made about the provisions of the Agreement.  It would appear 
that, in paragraph 102 of the Working Party Report associated with China's Protocol of Accession, 
there was a commitment with respect to notification of rules of origin.  Given that commitment, he 
questioned whether China was in a position to  notify these regulations to the Committee. 
 3.4 The representative of China
 stated that there appeared to  be no specific provision in the 
Agreement or in China's Accession Protocol requiri ng China to make a notification.  China noticed 
that their obligation in this regard was to publish or publicise the regulation and, in this regard, the 
regulation was already available on the websites of MOFCOM and the Customs Administration.  If 
any Member was interested he could also provide relevant copies of these documents. 
 3.5 The representative of Chinese Taipei
 expressed its appreciation for the answers given by the 
delegation of China in response to questions from Me mbers.  He was pleased to learn from the replies 
that some of the questions related to the re quirements of anti-circumvention and substantial 
transformation had also been addressed.  He would look into the detail of those documents mentioned 
by the delegation of China and looked forward to seeing China's continuing effo rts to carry out further 
liberalization and facilitation of trade in goods and the resulting  increase in market access which this 
would bring about.  
3.6 The CRO took note
 of the statements made and agreed  that the Secretariat prepare a short 
factual report under the Chairman's responsibility, toge ther with the minutes of the meeting for further 
detail, to be sent to the Council for Trade in Goods.   IV. ANNUAL REVIEW OF THE IMPLEMENTATION AND OPERATION OF THE 
AGREEMENT ON RULES OF  ORIGIN (G/RO/W/103) 
4.1 The Chairperson
 noted that the Secretariat had circulated, in document G/RO/W/103, the 
draft Review of the Implementation and Operation of the Agreement. 
 4.2 Although Article 6.1 required that the CR O review annually the implementation and 
operation of Parts II and III of the Agreement, th e CRO's main concern had been the work under 
Part IV of the Agreement, namely the Harmoni zation Work Programme.  After forwarding 94 core 
policy issues to the General Council for discussion an d decision at that level, however, the CRO was 
mandated by the General Council to complete the remaining technical work only after resolution of 
those 94 issues by the General Council.  This was the reason why the CRO had held only one meeting 
per year since 2002.   
 4.3 The Committee adopted
 the Annual Review of the Impl ementation and Operation of the 
Agreement on Rules of Origin (G/RO/60). G/RO/M/47 
Page 4  
 
  
 
V. ANNUAL REPORT (2005) TO THE COUNCIL FOR TRADE IN GOODS 
(G/RO/W/104) 
5.1 The Chairperson
 noted that the Secretariat had circulated a draft of the CRO's report to the 
Council for Trade in Goods, as required by Article 6.1 of the Agreement (G/RO/W/104), and that this 
would be revised in light of the discussion at this meeting of the CRO.    5.2 The CRO adopted
 its annual report to the CTG (G/L/747). 
 
 
VI. ELECTION OF OFFICERS 
6.1 The CRO re-elected  Ms. Vera Thorstensen (Brazil) as Chairperson and Mr. Tomoyoshi 
Watanabe (Japan) as Vice-Chairman of the CRO for 2005.  
 
VII. OTHER BUSINESS 
A. D
ATES AND AGENDA FOR THE NEXT MEETING  
7.1 The Chairperson  suggested that the dates and agenda  for the next meeting be set in 
consultation with delegations and also in li ght of developments in the General Council. 
 
__________