COMMITTEE ON RULES OF ORIGIN

DRAFT REPORT TO THE COUNCIL FOR TRADE IN GOODS

1  Background

1.1.  On 15 April 2025, the Chairperson of the Council for Trade in Goods (CTG) sent a communication to all the subsidiary bodies of the CTG instructing these bodies to consider compliance with notification obligations as well as the quality and timeliness of notifications. This communication followed discussions in the CTG on a report by the Secretariat titled "Status of Regular/Periodic and One‑Time Only Notifications in the Goods Area (1995‑2024) (_G/C/W/859)". The communication invited subsidiary bodies to consider specifically the following three questions:

1)_    What additional steps could be taken to improve the regular/periodic and one‑time only notification requirements?

2)_    What steps would be needed to improve the quality and timeliness of notifications? and

3)_    Which past actions have worked well in improving the number of submitted notifications?

1.2.  This document reports on the discussions held as a follow-up to that communication by the Committee on Rules of Origin (CRO) at an informal meeting held on 1 October 2025.

2  overview of transparency requirements related to Rules of Origin and compliance rates

2.1.  The CRO oversees three types of notifications, each with its own specific notification procedures.[1]

2.1  Non-Preferential Rules of Origin

a._         Requirement: This is a one-off notification obligation mandated by Article 5 of the Agreement on Rules of Origin.

b._         Notification procedures: Noting that many notifications under this requirement are outdated or incomplete, the Chairperson encouraged Members to consider updating their notifications. The Chairperson also recommended that Members use a notification template, on a voluntary basis (attached to a November 2024 report by the Chairperson of the Committee, _JOB/RO/8/Rev.3).

c._         Rate of compliance: 85.4% of WTO Members have submitted a notification under this requirement. 21 WTO Members have never submitted a notification (12 of which are LDCs).

d._         Access to notifications: A list of Members who have submitted a notification as well as outstanding notifications is updated annually and is available in the Annual Review of Implementation of the Agreement (see, for instance, the 2024 Review, G/RO/101).

2.2  Preferential Rules of Origin Applied in (Reciprocal) Regional Trade Agreements (RTAs) or in (Non-Reciprocal) Preferential Trade Arrangements for Developing Countries (PTAs)

a._         Requirement: This is a one-off notification obligation mandated by Paragraph 4 of Annex II of the Agreement.

b._         Notification procedures: There is no template for these notifications. However, notifications of this type were also covered by a decision taken by the Committee in 2012 by virtue of which notifications made to the Committee on Regional Trade Agreements (CRTA) or to the Committee on Trade and Development (CTD) sufficed to discharge Members' notification obligations under the Agreement on Rules of Origin. This decision avoided a duplication of notification obligations. As a result, relevant notifications made to the CRTA or the CTD are automatically also circulated to the CRO (paragraphs 3.5 to 3.7 of _G/RO/M/59).

c._         Rate of compliance: Since all Members have notified at least one preferential trade agreement, the rate of compliance is deemed to be 100%. However, there is no information on whether all preferential trade agreements and the relevant rules of origin have been notified.

d._         Access to notifications: notifications of regional trade agreements or preferential trade arrangements, including information about the applicable rules of origin, is made available through the WTO RTA Database and the WTO PTA Database. In addition, product-specific rules of origin can be retrieved through the Rules of Origin Facilitator (a tool jointly developed by the ITC, WCO, and WTO, providing user-friendly access to information on rules of origin and origin provisions in trade agreements).

2.3  Preferential rules of origin applied in (non-reciprocal) trade preferences for Least‑Developed Countries (LDCs)

a._         Requirement: These are one-off notifications covered by Paragraph 4 of Annex II of the Agreement as well as paragraph 1.9 of the Bali Ministerial Decision and paragraph 4.3 of the Nairobi Ministerial Decision.

b._         Notification procedures: In addition, the CRO agreed on a template to be used by all WTO preference‑granting Members (_G/RO/84) when notifying their preferential rules of origin. These notifications are circulated under the _G/RO/LDC/N/ document series.

c._         Rate of compliance: 86.4% of all Members who maintain non-reciprocal preferences for LDCs have submitted a notification. Three Members have not yet submitted a notification.

d._         Access to notifications: notifications of regional trade agreements or preferential trade arrangements, including information about the applicable rules of origin, is made available through the WTO PTA Database. In addition, product-specific rules of origin can be retrieved through the Rules of Origin Facilitator.

3  Initiatives to enhance transparency

3.1.  The adoption of a template by the CRO in 2017 proved very effective to improve information about preferential rules of origin applied in the context of non-reciprocal preferences for LDCs. This was also further supported by active and substantive discussions in the Committee about the content of such notifications.

3.2.  A similarly positive effect could be observed following the recommendation of the Chairperson in 2024, introducing a template for Members' usage on a voluntary basis to submit/update notifications of non-preferential rules of origin.

3.3.  Access to notifications and the information received has been facilitated by a dedicated section on the rules of origin webpage on the WTO website and by the launch in 2018 of the Rules of Origin Facilitator.

3.4.  In addition, the Committee has been taking stock annually of notifications received and outstanding. This exercise is helpful to identify and draw Members' attention to transparency gaps.

3.5.  Finally, the Secretariat has implemented a few initiatives (Secretariat-wide, that is, not specific to the CRO) to facilitate access to information about notification obligations and procedures as well as the status of compliance with such obligations, including:

1)_    The WTO Notification Handbook and, more recently, the WTO Notification Portal;

2)_    training sessions specifically on notifications, (including rules of origin);

3)_    training sessions on notifications in the context of Members' Trade Policy Review (before or after the review process).

4  Summary of Members' discussion

4.1.  Several Members took the floor to welcome the discussion on transparency and the use of a new voluntary template for notifying non-preferential rules of origin, highlighting the usefulness that updated notifications would have, especially for small and medium-sized enterprises and other economic operators. Several Members noted that the new notification template would inform the Committee's areas of work, such as identifying relevant trade-facilitating practices. One Member recalled that the Committee had agreed to use the template on a voluntary basis.

4.2.  Members shared their experiences in preparing non-preferential rules of origin notifications using the new template and stressed the need for close coordination between authorities to ensure that notifications were comprehensive, accurate, and up to date. The key functions of the Rules of Origin Facilitator was also highlighted.

4.3.  Members referred to the annual review of the Agreement on Rules of Origin and noted this could be an opportunity to discuss ways to improve implementation of the Agreement, including those related to notifications and transparency. The Secretariat highlighted that a review of the Agreement was conducted on an annual basis, during which the Secretariat prepared a factual implementation report containing information, among other things, on the notifications issued and any disputes concerning rules of origin.

4.4.  Regarding the questions of CTG Chairperson on improving the number, timeliness and quality of notifications, Members shared the following:

1)_    Actions that could work well include a standardized template for notifications; use of notification portal; technical workshops organized by the Secretariat; targeted outreach efforts to individual Members to understand their reasons for non-notification hence provided the necessary assistance; annual report on notifications; technical assistance before and after TPRs.

2)_    To improve timeliness of notifications, Members could share experience on internal coordination and timelines in the preparation of notifications in capitals. The Secretariat could also issue reminders to Members on the various types of notification obligations.

3)_    To improve quality of notifications, it would be helpful to firstly understand what the information in the notifications are used for by the trade, and the needs and gaps on information in the daily operation of stakeholders including the business sector as well as the border authorities. In this connection, information briefings could be held with participation of stakeholders. Separately, the wider use of templates, with step-by-step guidance on completion, would help providing clear and high-quality information. Furthermore, discussion on the annual review of the Agreement could shed light on quality of notifications.

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