The Real Cost of Rules of Origin: A Business Perspective to Discipline Rules of Origin in a Post COVID-19 Scenario

Abstract

In the day-to-day business life, rules of origin (RoO) are part of the cross-border routine and have to be administered in an efficient manner to facilitate customs clearance and not hinder trade. Toward this goal, addressing some of stigma over the cost of compliance with rules of origin can provide concrete support to trade policy makers and administrators for the introduction of reforms that could serve to stimulate world trade in the post Coronavirus disease 2019 (COVID 19) scenario. There is a real need to establish a public-private dialogue to simplify customs procedures related to rules of origin addressing the day-to-day hurdles that business is facing. It is hoped that the shock to world trade caused by the COVID 19 pandemic provides renewed energy to trade negotiations for drastic and pragmatic reforms towards convergence and simplification of rules of origin to support business, especially Small-Medium size enterprises (SMEs). Rules of origin, compliance costs, customs procedures, certificate of origin, supplier declaration, exporter declaration, Proof of origin, accounting segregation, Revised Kyoto Convention, Third country invoicing, direct consignment, Product specific rules of origin (PSRO).