Rules of Origin in the EU, a Simplification?

Abstract

Determining under which circumstances a good originates in a certain country is often an extremely complicated exercise. This is mainly caused first, by the fact that each Free Trade Agreement (‘FTA’) establishes a different set of rules of origin. Second, effectively claiming preferential treatment is also hindered by the fact that (1) preferential rules of origin are often designed in a very restrictive way and (2) a complicated administrative procedure usually needs to be followed in order for origin to be conferred to a good. Moreover, these procedures strongly differ from one FTA to another. This article analyses the ways in which the EU strives towards the application of more simple and modern rules of origin and origin procedures. More specifically, first, modernized rules of origin and origin procedures are included in FTAs recently concluded by the EU. Second, the Regional Convention on pan-Euro-Mediterranean preferential rules of origin will replace about 60 bilateral protocols on rules of origin with a single legal instrument. Third, the Registered Exporter (REX) system simplifies certification of origin of goods. Rules of origin, Origin Procedures, EU–Japan FTA, CETA, Free Trade Agreement (FTA), Association Agreement, PEM Convention, Registered Exporter System (REX)