World Bank Andean FTA Rules of Origin Video Conference: Textiles & ApparelJune 16th, 2005

Brian Rankin Staples

Trade Facilitation Services

Ottawa – Canada

Rules of Origin

Rules of origin versus the origin of rules.

Primary issues of concern and lesson learnt – some detailed examples.

Origin Policy under NAFTA: non-traditional alliances including textiles and apparel.

Rules of Origin

The role of the Harmonized System and customs authorities (Costa Rica).

Understanding the regional production process and tariff elimination sequencing.

Common and Uniform Regulations.

Rules of Origin

High tariff inputs versus low tariff inputs and the role of drawback (men’s suits, the Designer Remission Order, the CITT).

Origin certification issues.

Inventory management and the tariff shift rules for textiles and apparel.

Rules of Origin

The need for specialization: fashion, “fine animal hairs”, high-end knit cotton shirts.

Trade facilitation and technical assistance (advance rulings, TRQ/TPL administration).

Specific considerations in US-Chile, NAFTA and CAFTA.

Rules of Origin

Free trade zones and 27.4 of the SCM.

Duty drawback and CAFTA refund regime.

Safeguard Measures: transitional, can be threat based, MFN levels, competent authority, other constraints and compensation.

Rules of Origin

Customs cooperation: investigate claims even where no preference claimed.

Sanctions against goods exported and exporter.

Origin modification: “short supply” and de minimis

Rules of Origin

Outward processing – value for duty.

Country specific TPL = Costa Rica’s wool apparel and Nicaragua’s descending SME

Visible linings and thread rules.

Records, Appeals, Advance Rulings.

Rules of Origin

Tariff classification concordance.

Detailed “short supply” list.

Cumulation – Mexico and Canada and between producers.

Thank-you.