Committee on Rules of Origin - Nineteeth annual review of the implementation and operation of the Agreement on Rules of Origin - Note by the Secretariat

NINETEENth ANNUAL REVIEW OF THE IMPLEMENTATION AND

OPERATION OF THE AGREEMENT ON RULES OF ORIGIN

Note by the Secretariat[1]

Article 6.1 of the Agreement on Rules of Origin provides that "the Committee shall review annually the implementation and operation of Part II and Part III of this Agreement having regard to its objectives".  The outcome of such review will be the Committee's Annual Review to the Council for Trade in Goods on the implementation and operation of the Agreement on Rules of Origin. This background document is circulated by the Secretariat in preparation for the 19th annual review of the implementation and operation of the Agreement, to be conducted at the meeting of the Committee on Rules of Origin on 26 September 2013.

 

1.          CRO Members and Observers

1.1.  Government representatives of all WTO Members and Observers are also Members and Observers to the CRO. In addition, the following international organizations also have observer status at the CRO: ACP, EFTA, IADB, IMF, OECD, UNCTAD, WCO and World Bank.

 

2.          Officers of the Committee on Rules of Origin

2.1.  Chairman:  Mr. Marhijn VISSER (The Netherlands)

 

3.          Meetings of the Committee on Rules of Origin

3.1.  The Committee on Rules of Origin (CRO) held two formal meetings on 18 April and 26 September 2013.  The minutes of these meetings are contained in documents G/RO/M/60 and G/RO/M/61 respectively.  Some informal meetings and a series of bilateral consultations between the Chairman and selected Members have also taken place in 2013.

 

3.2.  With regard to the work under Part III of the Agreement, the CRO took note of 20 new notifications under Article 5 and paragraph 4 of Annex II of the Agreement.  Notifications received in 2013 bring the total number of Members having notified some rules of origin to 87 (the EU and its Members States being counted as one).  The latter number reflects both notifications made to the CRO as well as to other relevant bodies of the WTO, that is, the Committee on Regional Trade Agreements and the Committee on Trade and Development.  A full list of notifications available and those outstanding was prepared by the Secretariat and reviewed by the CRO (RD/RO/7). The Chairman urged Members who had not yet notified their rules of origin to the Committee to do so as early as possible.

 

3.3.  With regard to the Harmonization Work Programme under Part IV of the Agreement, the General Council, at its meeting on 27 July 2007, recognized that delegations in the CRO had encountered such difficulties on the "implications" issue and in the sector of machinery that guidance from the General Council was warranted on how to take these issues forward.  The recommendation of delegations in the CRO was that work on these issues be suspended until such guidance from the General Council would be forthcoming.  The General Council agreed and instructed the CRO to focus its work, in the meantime, on the technical aspects of the overall architecture.

 

3.4.  Accordingly, the CRO, at its meetings on 18 April, continued technical discussions on the Rules of Appendix 2 on the basis of a compromise proposal made by the Chairman (first item in the Annex of G/RO/M/60).  While drawing support from many Members, the proposed text could not be endorsed and additional negotiations would be required to finalize the language of that Appendix. In addition, the CRO took note of the transposition of draft harmonized rules of origin into more recent versions of the HS: 2002, 2007 and 2012.  During a technical workshop in April 2013, the WTO Secretariat presented the results of that work and informed Members that a fully consolidated text would be prepared containing all the draft harmonized rules of origin in their most recent version.  In addition, the Committee also took note of recommendations, submitted by the Technical Committee on Rules of Origin, of simplified rules of origin for draft rules transposed into the HS2002 and HS2007 versions (G/RO/W/143).

 

4.          Annual Report to the Council for Trade in Goods

4.1.  The CRO considered its report to the CTG (G/RO/W145).

 

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[1] This document has been prepared under the Secretariat's own responsibility and without prejudice to the positions of Members and to their rights and obligations under the WTO.