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Handbook of Trade Policy for Development$
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Arvid Lukauskas, Robert M. Stern, and Gianni Zanini

Print publication date: 2013

Print ISBN-13: 9780199680405

Published to Oxford Scholarship Online: January 2014

DOI: 10.1093/acprof:oso/9780199680405.001.0001

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Rules of Origin *

Rules of Origin *

Chapter:
(p.569) Chapter 18 Rules of Origin*
Source:
Handbook of Trade Policy for Development
Author(s):

Paul Brenton

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199680405.003.0018

Rules of origin (ROOs) are integral parts of preferential trade agreements (PTAs), as they ensure that only goods originating in partner countries enjoy preferences. The potential benefits of trade agreements for developing countries can be substantially undermined by restrictive ROOs. If instead the objective is to stimulate regional or bilateral integration and minimize the burden on firms and customs in complying with and administering the rules, specifying generally applicable ROOs, with a limited number of clearly defined and justified exceptions, is recommended. Unnecessary use of a detailed product-by-product approach is likely to lead to complex and restrictive ROOs to constrain integration. Producers should be provided with flexibility in meeting origin rules, for example, by specifying that either a change-of-tariff requirement (at the heading level) or a value-added rule can be satisfied.

Keywords:   Origin, restrictive ROOs, change-of-tariff, value-added rule

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