Given the variety of rules of origin, however, such harmonization is a complex exercise. Not much more work was done on rules of origin until well into the Uruguay Round negotiations. In the late s developments in three important areas served to focus more attention on the problems posed by rules of origin:. First, an increased use of preferential trading arrangements, including regional arrangements, with their various rules of origin;. Lastly, an increased use of anti-dumping laws, and subsequent claims of circumvention of anti-dumping duties through the use of third country facilities.
The increased number and importance of rules of origin led the Uruguay Round negotiators to tackle the issue during the negotiations. The Agreement on Rules of Origin aims at harmonization of non-preferential rules of origin, and to ensure that such rules do not themselves create unnecessary obstacles to trade. Until the completion of the three-year harmonization work programme, Members are expected to ensure that their rules or origin are transparent; that they are administered in a consistent, uniform, impartial and reasonable manner; and that they are based on a positive standard.
Article 1 of the Agreement defines rules of origin as those laws, regulations and administrative determinations of general application applied to determine the country of origin of goods except those related to the granting of tariff preferences. Thus, the Agreement covers only rules of origin used in non-preferential commercial policy instruments, such as MFN treatment, anti-dumping and countervailing duties, safeguard measures, origin marking requirements and any discriminatory quantitative restrictions or tariff quotas, as well as those used for trade statistics and government procurement.
It is to meet at least once a year and is to review the implementation and operation of the Agreements Article Its main functions are a to carry out the harmonization work; and b to deal with any matter concerning technical problems related to rules of origin. It is to meet at least once a year.
Definition
Article provided that the HWP be completed within three years of initiation. Its agreed deadline was July While substantial progress was made in that time in the implementation of the HWP, it could not be completed due to the complexity of issues. In July the General Council approved a decision whereby Members have committed themselves to make their best endeavours to complete the Programme by a new target date, November To provide harmonized definitions of the goods that are to be considered as being wholly obtained in one country, and of minimal operations or processes that do not by themselves confer origin to a good;.
To elaborate, on the bases of the criteria of substantial transformation, the use of the change of tariff classification when developing harmonized rules of origin for particular products or sectors, including the minimum change within the nomenclature that meets this criterion. To elaborate supplementary criteria, on the basis of the criterion of substantial transformation, in a manner supplementary or exclusive of other requirements, such as ad valorem percentages with the indication of its method of calculation or processing operations with the precise specification of the operation.
The CRO and the TCRO have established an overall architectural design within which the harmonization work programme is to be finalized. The results of the harmonization programme are to be approved by the Ministerial Conference and will then become an annex to the Agreement.
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