Abstract
The rules of origin derived from the international trade needs of country trade statistics. When a government determined the supply and demand sources of imports and exports, they needed to clear the meaning of origin. For a large trade country, its customs levels differed from the country. So when imported the goods, the first was to discern the source of goods, then can accurately provide the appropriate treatment of the goods. It’s also the need to balance international trade. From this, the rules of origin initially were the technical aspects of international trade. With the development of liberalization of international trade and the tariff levels gradually reduced between countries, the use of non-tariff barriers was limited. Rules of origin’s impact on trade structure and resource allocation became more and more prominent, which had evolved into a hidden trade protection tool. With the deepening of international economic exchange, the application of rules of origin had expanded from the original customs technical problems to the country quotas, anti-dumping and many other fields. Also, it had become a powerful policy tool for implementing the trade protection, to some extent it had evolved into the discriminatory non-tariff barriers.
Highlights
The rules of origin derived from the international trade needs of country trade statistics
The functions of rules of origin in a country or a region first were for the need of origin marks, consumer interests protection and international trade statistics, which was a technology standard
If there were no rules of origin, member states outside the region, in seek of maximum benefits, under the case of low transport costs, the inevitable choice for the export was to the countries with low tariffs, and enjoyed preferential treatments as well as exported to the destination country
Summary
The functions of rules of origin in a country or a region first were for the need of origin marks, consumer interests protection and international trade statistics, which was a technology standard. The U.S Customs required that all imports with foreign origin must be marked and indicated the country of origin. The free trade area rules of origin, compared to a country’s rules of origin, apart from the above functions, there was still an important feature was to prevent trade deflection. If there were no rules of origin, member states outside the region, in seek of maximum benefits, under the case of low transport costs, the inevitable choice for the export was to the countries with low tariffs, and enjoyed preferential treatments as well as exported to the destination country. In order to prevent trade deflection, free trade area may formulate rules of origin, and this was the original function of FTA rules of origin
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