Global System of Trade Preferences (GSTP)

Annex-II
Rules of Origin

For determining the origin of products eligible for preferential concessions under the GSTP in the light of paragraphs (a) and (b) of Article 3 and Article 15 of the Agreement on GSTP the following Rules shall be applied:

Rule-1 : Originating Products - Products covered by preferential territory arrangements within the framework of the GSTP imported into the territory of a participant from another participant which are consigned directly within the meaning of Rule 5 hereof, shall be eligible for preferential concessions if they conform to the origin requirement under any one of the following conditions :

a) Products wholly produced or obtained in the exporting participant as defined in Rule 2; or
b) Products not wholly produced or obtained in the exporting participant, provided that the said products are eligible under Rule 3 or Rule 4.

Rule-2 : Wholly produced or obtained : within the meaning or Rule 1 (a) the following shall be considered as wholly produced or obtained in the exporting participant :

a) raw or mineral products extracted from its soil, its water or its seabed
b) agricultural products harvested there; 2/ 
c) animals born and raised there; 
d) products obtained from animals referred to be in paragraph (c) above; 
e) products obtained by handing or fishing conducted there; 
f) products of sea fishing and other marine products taken from the high seas by its vessels : 3/ 4/ 
g) products processed and/or made on board its factory ships 4/ 5/ exclusively from products referred to in paragraph (f) above; 
h) used articles collected there, fit only for the recovery of raw materials; 
i) waste and scrap resulting from manufacturing operations conducted there; 
j) goods produced there exclusively from the products referred to in paragraph (a) to (i) above.

Rule-3 : Not wholly produced or obtained

a) Within the meaning of Rule 1(b), products worked on or processed as a result of which the total value of the materials, parts or produce originating from non-participants or of undetermined origin used does not exceed 50% of the f.o.b value of the products produced or obtained and the final process of manufacture is performed within the territory of the exporting participant shall be eligible for preferential concessions, subject to the provisions of Rule 3(c) and Rule 4.
b) Sect oral agreements 6/
c) The value of the non-originating materials, parts of produce shall be :
i) The c.i.f. value at the time of importation of the materials, parts or produce where this can be proven; or
ii) The earliest ascertainable price paid for the materials, parts or produce of undetermined origin in the territory of the participant where the working or processing takes place.

 

Rule-4 : Cumulative rules of origin - Products which comply with origin requirements provided for in Rule 1 and which are used by a participant as input for a finished product eligible for preferential treatment by another participant shall be considered as a product originating in the territory of the participant where working or processing of the finished product has taken place provided that the aggregate content originating in the territory of the participant is not less than 60% of its f.o.b. value. 7/ 

Rule-5 : Direct consignment-The following shall be considered as directly consigned from the exporting participant ot the importing participant : 

a) if the products are transported without passing through the territory of any non- participant: 
b) the products whose transport involves transit through one or more intermediate non-participants with or without transshipment or temporary storage in such countries, provided that :
i) the transit entry is justified for geographical reason or by considerations related exclusively to transport requirement :
ii) the products have not entered into trade or consumption there ; and
iii)the products have not undergone any operation there other than unloading and reloading or any operation required to keep them in good condition. 

Rule-6 : Treatment of packing - when determining the origin of products, packing should be considered as forming a whole with the product it contains, However, packing may be treated separately if the national legislation so requires.

Rule-7 : Certificate of origin - Products eligible for preferential concessions shall be supported by a Certificate of Origin 8/ issued by an authority designated by the government of the exporting participant and notified to the other participants in accordance with the certification Procedures to be developed and approved by the participants.

Rule-8 : (a) In conformity with paragraphs (a) and (b) of Article 3 and Article 15 of the Agreement on the GSTP and national legislations. Any participant may prohibit potation of products containing any inputs originating from States with which it does not have economic commercial relations.

(b) Participants will do their best to co-operate in order to specify origin of inputs in the Certificate of Origin.

Rule-9 : Review - These rules may be reviewed as and when necessary upon request of one third of the participants and may be open to such modifications as may be agreed upon.

 

Rule-10 : Special criteria percentage - Products originating in participating least developed countries can be allowed a favorable in percentage points applied to the percentages established in Rules 3 and 4. Thus, for Rule 3, the percentage would not exceed 60 percent, and for Rule 4, the percentage would not be less than 50 per cent.

* Notes :

1/ Include mineral fuels, lubricants and related materials as well as mineral or metal ores.
2/ Include forestry products.
3/ "Vessels" - shall refer to fishing vessels engaged in commercial fishing, registered in a participant's country and operated by a citizen or citizens or government of participants or partnership, corporation or association, duly registered in such participant's country. At least 60 per cent of equity of which is owned by a citizen or citizens and/or government do such participant or 75 per cent by citizens and/or governments of the participants. However the products taken from vessels engaged in commercial fishing under bilateral agreements which provide for chartering/leasing of such vessels and/or sharing of catch between participants will also be eligible for preferential concessions.
4/ In respect of vessels or factory ships operated by government agencies, the requirement of flying the flag of a participant does not apply.
5/ For the purpose of this Agreement, the term "factory ship" means any vessels, as defined, used for processing and/or making on board products exclusively from those products referred to in paragraph (f) above.
6/ In respect of products traded within the framework of sect oral agreement negotiated under the GSTP, provision may need to be made for special criteria to apply. Consideration may be given to these criteria as and when the sect oral agreements are negotiated.
7/ "Partial" cumulating as implied by Rule 4 above means that only products which have acquired status in the territory of one participant may be taken into account when used as inputs for a finished product eligible for preferential treatment in the territory of another participant.
8/ A standard Certificate of origin to be used by all participants is annexed.

1. Goods consigned from (Exporter’s business name, ddress,     

    country)

 

 

 

 

 

 

 

Reference No.

 

 

 

 

GLOBAL SYSTEM OF TRADE PREFERENCES

 

CERTIFICATE OF ORIGIN

(Combined declaration and certificate)

 

Issued in   . . . . . . . . . . . . .

                  (country)

 

 

 

See Notes overleaf

2. Goods consigned to (Consignee’s name, address, country)

 

 

 

 

 

 

 

3. Means of transport and route (as far as known)

 

 

 

 

 

 

 

 

 

 

4. For official use

 

 

 

 

 

 

 

 

 

 

5. Tariff

   item

   number

6. Marks and    

    numbers of   

    packages

7. Number and kind of packages; description of goods

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8. Origin

  criterion

  (see Notes

  overleaf)

 

 

 

 

 

 

 

9. Gross  

    weight

    or other

    quantity

10. Number

  and date 

  of invoices

11.  Declaration  by  the  exporter

      The  undersigned  hereby  declares  that  the  above  details  and  

      statements  are  correct; that  all  the  goods  were produced in

                                            

. . . . . . . . . . . . . . . . . . . . . . . .

                                                          (country)

 

       and  that  they  comply  with  the  origin  requirements  specified

       for  those goods  in  the  Generalised  System  of Preferences  for 

       goods  exported  to

      

. . . . . . . . . . . . . . . . . . . . . . . . . .

(importing country)

 

 

. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .

Place and date, signature of authorised signatory

12.  Certification

       It  is  hereby  certified,  on  the  basis  of  control  carried out, 

       that  the  declaration  by  the  exporter  is  correct.

 

 

 

 

 

 

 

 

 

 

 

 

 

. . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 

Place and date, signature and stamp of certifying authority

NOTES

I. General conditions

To qualify for preference, products must:

(a) fall within a description of products eligible for preference in the schedule of concessions of the GSTP country of destination; 

(b) comply with the GSTP rules of Origin. Each article in a consignment must qualify separately in its own right; and 

(c) comply with the consignment conditions specified by the GSTP Rules of Origin. In general, products must be consigned directly within the meaning of Rule 5 hereof from the country of exportation to the country of destination.


II. Entries to be made in box 8

Preferences products must be wholly produced or obtained in the exporting participant in accordance with rule 2 of the GSTP Rules of Origin, or where not wholly produced or obtained in the exporting participants must be eligible under rule 3 or rule 4.

(a) products wholly produced or obtained : enter the letter "A" in box 8.

(b) products not wholly produced or obtained : the entry in box 8 should be as follows:

     1. Enter letter "B" in box 8, for products which meet the origin criteria according to rule 3. Entry of letter "B" would be followed by the sum of the value of materials, undetermined origin used, expressed as a percentage of the f.o.b. value of the exported products; (example "B" 50 per cent).

     2. Enter letter "C" in box 8 for products which meet the origin criteria according to rule 4. Entry of letter "C" followed by the sum of the aggregate content originating in the territory of the exporting participant expressed as a percentage of the f.o.b. value of the exported product; (example "C" 60 per cent). 

     3. Enter letter "D" in box 8 for products which meet the special origin criteria according to rule 10.

III. GSTP country

 

Algeria

Mercosour (Argentina, Brazil, Paraguay, Uruguay, Venezuela)

Argentina

Mexico

Bangladesh

Morocco

Benin

Mozambique

Bolivia

Myanmar

Brazil

Nicaragua

Cameroon

Nigeria

Chile

Pakistan

Colombia

Peru

Cuba

Philippines

Democratic People's Republic of Korea

Republic of Korea

Ecuador

Singapore

Egypt

Sri Lanka

Ghana

Sudan

Guinea

Thailand

Guyana

Trinidad and Tobago

India

Tunisia

Indonesia

United Republic of Tanzania

Iran (Islamic Republic of)

Venezuela

Iraq

Vietnam

Libyan Arab Jamahiriya

Zimbabwe

Malaysia