RESTRICTED  WORLD TRADE  
ORGANIZATION  G/RO/M/52 
21 July 2009 
 (09-3559) 
Committee on Rules of Origin  
  
 
MINUTES OF THE MEETING OF 11 JUNE 2009 
 
Chairperson:  Ms. Vera Thorstensen
 
 
Subjects Discussed  
 
I. REPORT OF THE WORK OF THE TECHNICAL COMMITTEE ON RULES 
OF ORIGIN...................................................................................................................... .........1  
II. TECHNICAL ISSUES IN THE H ARMONIZATION WORK PROGRAMME 
(JOB(07)/84/REV.1, G/RO/W/111/REV.3, G/RO/W/125 AND 126) – 
REPORTING OF THE INFORMAL CONSULTATIONS..................................................2  
III. NOTIFICATIONS UNDER ARTICLE 5 AND PARAGRAPH 4 OF ANNEX II 
OF THE AGREEMENT ON RULES  OF ORIGIN (G/RO/N/60, 
G/RO/N/60/REV.1 AND (G/RO/N/61) ....................................................................................8  
IV. ELECTION OF OFFICERS....................................................................................................8  
V. WORKSHOP ON RULES OF ORIGIN.................................................................................8  
VI. DATES FOR THE NEXT MEETINGS..................................................................................9  
 
 
I. REPORT OF THE WORK OF THE TEC HNICAL COMMITTEE ON RULES OF 
ORIGIN 
Non-preferential rules of origin  
 1.1 The representative of the World Customs Or ganization (WCO) stated that the Technical 
Committee on Rules of Origin (TCRO) held its 27
th session on 26 January 2009 at the WCO 
Headquarters in Brussels. The meeting was chaired by Mr. Ping Liu (China).  
1.2 Within the framework of its permanent res ponsibilities, the TCRO adopted the Tenth Periodic 
Report and the Tenth Annual Review on technical aspects and implementation of the Agreement for 
the period from 1 January to 31 December 2008.  Th e Annual Review related to technical aspects of 
the implementation and operation of the Agreement.   It was short since the Agreement has not yet 
been implemented in practice and to date no problems or specific questions have been referred to the 
TCRO.  The periodic Report also related to techni cal aspects and operation of the Agreement but also 
contained information on the Secretariat’s activities and the work of the Technical Committee.  These 
two documents (OCO127 and OC0128) have been pl aced on the WCO Members’ Web site under the 
part relating to the Technical Committee’s 27
th session.  The TCRO took note of the presentation by 
the WTO representative on the latest work of the CRO.   He informed the TCRO of the publication of 
the latest version of the consolidated text (Doc ument G/RO/W111/Rev. 3) and also indicated that a 
consensus had been reached on a certain number of specific Rules of Origin and that the CRO was 
studying possible amendments to the architecture contained in Appendix II. G/RO/M/52 
Page 2  
 
  Preferential rules of origin
 
 1.3 After the meeting of the TCRO, an informal mee ting was held to enable ten or so delegates to 
refer to the situation regarding preferential rules in their respective countries.  They touched upon new 
agreements being implemented, difficulties of applic ation, organization of controls and certificates of 
origin.  Participants welcomed this informal se ssion which led to fruitful discussions.  The database 
on preferential rules should be launched shortl y and made available to WCO Members on our 
website.  Technical assistance activities 
 
 
1.4 Between April 2008 and May 2009, the Secretar iat had undertaken four technical assistance 
activities relating to harmonization of non-preferential rules of origin and questions concerning the 
application of preferential rules.  Two regional se minars had been organized, one in Burkina Faso 
(funded by Japan) in April 2008, and the other in  the Dominican Republic in May 2008. A national 
seminar was held in Nigeria in September 2008.  Th e Secretariat also participated in a Forum on 
Origin in Brazil in October 2008, and in a semina r on risk analysis organized by the American 
Development Bank in Colombia.  It also participat ed in the symposium in Egypt in January 2009, 
organized by the Islamic Development Bank.  In J une 2008, the Secretariat organized a conference on 
rules of origin entitled “Getting to Grips with origin”.  A report summarizing the conference can be found on the WCO website. 
 
Other information
 
 
1.5 Bosnia Herzegovina recently became a Memb er of the WCO which now has 174 Members. 
 
1.6 The CRO took note  of the report and expressed appreciation for the TCRO's continued 
valuable work.  
II. TECHNICAL ISSUES IN THE HARMONIZATION WORK PROGRAMME 
(JOB(07)/84/REV.1, G/RO/W/111/REV.3, G/RO/W/125 AND 126) – REPORTING OF THE INFORMAL CONSULTATIONS 
2.1 The Chairperson noted that the Secretariat had circulated documents G/RO/W/111/Rev.3, 125 
and 126.  2.2 Based on the informal consultations the Chai rperson had held with Members concerned, the 
Chairperson stated as follows: 
 
A. OVERALL
 ARCHITECTURE 
1. General Rule 6  
(a) One delegation noted that there are provisions  in Appendix 2 which are similar to the 
General Rule 2, and that, for instance, the drying of fish is recognized in the CRO 
Chair's proposal as a substantial transformation, but it may be considered to be 
"ensuring preservation of goods in good co ndition for the purposes of storage".  
Therefore, the delegation suggested that  the expression "whether a good has been 
wholly obtained in one country" should re main with brackets, until we all have a 
crystal clear idea of the scope of this provision. 
(b) One delegation stated that, according to cu rrent consolidated text, minimal operation 
or process should apply to both Appendix I and II, and that in their view any  G/RO/M/52 
 Page 3 
 
 
  production process (such as drying) which changes the nature of a good cannot 
qualify as a minimal operation.  He had alread y provided the CRO with a text for this 
rule as contained in document G/RO/W/121. 
2. Appendix 2  
The following CRO Chair's non proposal summa rizes the outcome of the informal 
consultations on this matter: 
  
10 June 2009  
 
Non-Proposal from the CRO Chair 
 
APPENDIX 2 – PRODUCT SPECIFIC RULES OF ORIGIN 
 
 This Appendix sets forth rules for determini ng the country of origin of a good when the good 
is not considered to be wholly obt ained in accordance with Appendix 1. 
 
 Rule 1:  Determination of Origin 
 
 Alternative 1 : The country of origin shall be dete rmined in accordance with this Rule, 
 applied in sequence: 
 
 Alternative 2 : The provisions of this Rule shall be applied in sequence, taking into account 
 Rule 2 where applicable: 
 
(a) The country of origin of a good is the country in which the good is produced exclusively from 
originating materials; 
 
 Primary Rules  
 
(b) When a primary rule by its own terms identifies the country of origin of a good, that country 
is the country of origin of the good;  
 
(c) The country of origin of a good is the last c ountry of production, provided a primary rule 
prescribed for the good in this Appendix has been satisfied in that country; 
 Residual Rules  
 
(d) Alternative 1 : When a good is produced by further processing of a material which is 
classified in the same heading, subheading, split heading, or split subheading as the good, the 
country of origin of the good shall be the single country in which the material originated; 
 
 Alternative 2 : When a good undergoes production that does not satisfy a primary rule for the 
 good, the country of origin of the good is the country of origin of the single material that does 
 not satisfy the primary rule, taking into account  originating and non-originating materials; 
 G/RO/M/52 
Page 4  
 
   Alternative 3
: A good is produced by further processing of a material which is classified in 
 the same subdivision1 as the good, the country of origin of the good shall be the single 
 country in which the material originated; 
 
(e) The country of origin of a good is the country where a residual rule at the chapter level is 
 satisfied; 
 
(f) Alternative 1 : The country of origin of a good shall be the country of origin of material or 
 materials incorporated in the good by further processing, provided the origin of material or 
 materials is a single country; 
 
 Alternative 2 : When the good is produced from material  or materials all of which originated 
 in a single country, the country of origin of the good shall be the country in which the 
 material or materials originated;  
(g) When a good is produced from materials of more than one country, the country of origin of 
the good shall be the country in which the ma jor portion of those materials originated, as 
determined by the criterion specified in th e Chapter where the good is classified;  and 
(h) Can we be sure that the above rules will definite ly identify a single country of origin for any 
goods under all possible production possibilities? 
 
 Rule 2:  Application 
 
(a) The rules provided in this Appendix are to be  applied to goods based upon their classification 
in the HS as referred to in General Rule 1 of this Annex and an y additional subdivisions 
created for the purposes of this Appendix; 
(b) Reference to a change in tariff classifica tion in primary rules shall apply only to non-
originating materials; 
(c) When the primary rules require a change in  tariff classification, the following changes in 
classification shall not be considered in determining the origin of the good; 
 (i) changes which result from disassembly, 
 (ii) changes which result from packaging, repackaging, or putting up for retail sale, 
 (iii) changes which result solely from applica tion of General Rule of  Interpretation2(a) of 
  the HS with respect to collections of parts that are presented as unassembled or                    
  disassembled articles. 
 
However, such changes shall not preclude conferri ng origin on a good if origin is conferred as 
 a result of other operations. 
(d)  Intermediate materials 
 Materials which have acquired or iginating status in a country are considered to be originating 
materials of that country for the purpose of de termining the origin of a good incorporating 
such materials, or of a good made from such materials by further working or processing in 
that country; 
 
                                                      
1 The term "subdivision" relates to the lowest level of classification of the good, i.e. heading, 
subheading, split heading or split subheading, at which a primary rule is specified in this Appendix.  G/RO/M/52 
 Page 5 
 
 
  (e)   Interchangeable goods and materials 
 When it is not commercially practical to keep separate stocks of interchangeable materials or 
goods originating in different countries, the country of origin of commingled materials or 
goods that are interchangeable may be allocated  on the basis of an inventory management 
method recognized in the country in which the materials or goods were commingled.  [The 
use of this system shall not give rise to more products originating in specific country than 
would have been the case, had the commingl ed materials and goods been physically 
segregated.]; 
(f)   De Minimis 
 For the purposes of the application of primar y rules based on tariff classification change, non-
originating materials that do not satisfy the prim ary rule shall, unless otherwise specified in a 
certain Chapter, be disregarded, provided that  the totality of such materials does not exceed 
10% of the value of the good. 
 
 
B. PRODUCT -SPECIFIC RULES OF ORIGIN  
 Chapter Rules  
 
(a) The Secretariat was requested to rearrang e all chapter level rules in accordance with 
the following 4 categories:  (1) Definitions; (2) Chapter Notes, (3) Primary Rules; and 
(4) Residual Rules.  The rules should also be consistently expressed as "be considered 
as origin conferring". 
 (b) One delegation stated that Members shoul d recheck whether the subsidiary rules in 
the matrix would still be appropriate since these rules were proposed when the overall 
picture of the architecture was unclear. 
 
(c) The Secretariat was requested to provide  a summary of technical discussions which 
took place at the previous CRO meetings c oncerning the Chapter rules of machinery, 
for discussion at the meeting. 
 
 Split Headings 03.05(a) and 03.05(b)
 
 
 One delegation stated that they were unable to agree with the Chair's proposal for dried fish of 
split heading 03.04(b) and smoked fish of split heading 03.05(a), but they can go along with the Chair's proposal if the following phrase is  included in the chapeau:  "Recognizing that 
rules of origin do not prejudice Members' rights and obligations in respect of the application 
of domestic requirements for food labelling or  for sanitary and phytosanitary measures." 
 
 Chapter 28
 
(a) One delegation stated that simple diluti on may change origin in accordance with the 
residual rule which uses weight or volu me, and suggested using value criteria. 
 
(b) Some Members stated that solvents an d other addictives are disregarded under the 
current residual rule, and using of value criteria is unnecessary. 
 (c) One delegation stated that their proposal  contained in document G/RO/51 (page 11) 
should be discussed at the next meeting of the CRO. G/RO/M/52 
Page 6  
 
  Heading 6406
 
 Mexico proposed "CTH" instead of the Chair' s proposal "CTHS" for split headings ex 6406(a) 
and (b), and "CTH" foe split heading ex6406(c).  
  
Parts of uppers
 
  
 
 
 
  
Uppers of footwear to which an inner sole is permanently
 
attached which completely  closed to the bottom  
 
 
 
 G/RO/M/52 
 Page 7 
 
 
  Technical rectifications  
 (a) ex03.04(b):  "Subheading" should read "split heading". 
(b) 04.04:  The descriptions of splits are the same as the ones of subheadings. 
(c) 04.10:  One square bracket remained in  the Primary rule should be deleted. 
(d) ex50.04(b):  The primary rule should read " CTH, except from heading 50.06". 
(e) ex50.06(c):  The primary rule should read" CTH, except from heading 50.04 or               
   50.05". 
(f) ex55.08(c):  The primary rule should read "CTH, except from headi ng 55.09 through                           
   55.11". 
(g) 5810.10:  A question mark beside 50% should be deleted. 
(h) 6307.10:  The primary rule should read "[CTH]";   
  6307.90:  The primary rule should read "[CTH provided the starting material is              prebleached or unbleached fabric]". 
(i) 7304.31, 7304.41, 7304.51:  The primary rule should read "CTH or change from...". 
(j) Note of Chapter 83:  a comma which is placed between  "blank" and "which" should              
   be deleted. 
(k) 82.06:  The primary rule should read "CTH, except when resulting only from putting 
   up in sets". 
(l) 84.10, 84.71, 88.05, 90.09:  Consistency of  expressions in colomn (3) are required. 
 
2.3 The representative of China
 thanked the Chair, the Secretaria t and other delegations for their 
efforts that had been put into this first ever in-d epth examination of the architecture and Chapter Rules 
and Notes.  He was generally happy about the s ubstance of the discussion and about the outcome.  
After examination, his delegation was prepared to work hard together with the others Members to 
push for the early completion of the technical work as mandated by the General Council, and 
hopefully early application of the rules.  Talking about application, he would like to recall the CRO 
Chair's proposal as one of the ways forward for Members to apply the already agreed rules as 
guidelines on non-binding bases for five years.  In th at connection, he stated that there was nothing 
that impeded a Member to apply the rules that were already agreed upon. 
 2.4 The representative of India
 recalled that the harmonization wo rk programme (HWP) started in 
1995 and was supposed to be comple ted by 1998, within 3 years of initiation.  However, although 14 
years had passed, it was unclear when the work could be completed.  In this light, he suggested setting 
a deadline and an action plan to complete this long overdue work.  2.5 The representative of Ecuador
 reserved its position on the technical issues. 
 
2.6 The CRO took note  of the statements. 
 G/RO/M/52 
Page 8  
 
  III. NOTIFICATIONS UNDER ARTICLE 5 AND PARAGRAPH 4 OF ANNEX II OF THE 
AGREEMENT ON RULES OF ORIGIN (G/RO/N/60, G/RO/N/60/REV.1 AND (G/RO/N/61) 
3.1 The Chairperson
 recalled that since the last review  on notification by the Committee, the 
Secretariat had circulated three documents in forming Members of notifications submitted by 
Switzerland/Liechtenstein; Tunisia and Norway (G/R O/N/60/Rev.1, 61 and 62). To date, 77 Members 
have made notifications of non-preferential rules of origin to the Committee, and 84 Members have made notifications of preferential rules of origin.  The Secretariat is of the view that for preferential 
rules of origin, almost all Members have notified e ither to the CRO or other Committees, for example, 
the Committee on Regional Trade Agreements. The Secr etariat would like to circulate a document to 
confirm the fact before the next meeting. 
 3.2 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.  
3.3 The CRO took note
 of the statement made. 
 
IV. ELECTION OF OFFICERS 
4.1 The CRO re-elected  Ms. Vera Thorstensen (Brazil) as Chairperson. 
 
V. WORKSHOP ON RULES OF ORIGIN 
5.1 The representative of El Salvador  stated that the HWP was an i ssue of great importance to her 
country.  However, at this stage, the discussions  had been substantially developed and mainly 
technical and it was hard for El Salvador to contribut e, because it did not apply these types of rules of 
origin.  El Salvador's experience was confined to pr eferential rules of origin.  Also taking into account 
the fact that many delegates covering this issue we re relatively new, her delegation suggested that the 
Secretariat hold a workshop on rules of origin whic h would help them to ha ve a better understanding 
of the negotiations.  She suggested holding the work shop before or in between the next meeting. 
 5.2 The representative of the United States
 stated that there were two separate issues involving 
the workshop.  One was a workshop for negotiators, as the delegation of El Salvador said.  Since 
many new delegates were moving into intense tec hnical discussions, it might be worthwhile for the 
negotiators to have this kind of workshop.  The seco nd issue is how to implement the results of these 
negotiations.  For example, if the CRO arrives at an  agreement on a certain package, definitely one of 
the issues that is going to have to be addressed is a technical assistance for Members on how to implement that agreement, and there might be a long transition period in which Members are given 
time to familiarize themselves with the agreement.  However at this stage, it did not make sense even 
to think about the second issue, because it was not  exactly known what package Members were going 
to have.  On the other hand, he would have no objection to having a workshop for negotiators on what 
were the issues that delegations faced, with a view to improving the technical knowledge of the 
negotiators.  5.3 The CRO took note
 of the statements.  G/RO/M/52 
 Page 9 
 
 
   
VI. DATES FOR THE NEXT MEETINGS 
6.1 The Chairperson  suggested the following dates for the next meeting of the CRO: 
  - 12-14 October for informal meetings; 
 - 15 October for the formal meeting. 
  
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