1. Introducing the EU-SADC EPA
- Making sense of the rules of origin in the EU-SADC Economic Partnership Agreement
Maseru, 14/15 March 2018

2. The presentation The SADC EPA – who's in? Rules of origin
EU Trade Helpdesk
The presentation

3. The SADC EPA configuration: Angola, Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland
Angola, observer in negotiations, has not signed
Provisional application following ratification by 5 SACU members, 10 October 2016
Mozambique ratified in April 2017 and applied since 4 February 2018
The SADC EPA - who’s in?

4. Why do we need rules of origin?
To implement trade policy:
Normal trade measures including anti-dumping duties and recording statistics (non-preferential rules)
Preferential rules, for trade between partners with special arrangements such as an EPA
SADC-EU EPA rules of origin: To distinguish which goods should benefit from the agreement
Why do we need rules of origin?

5. Where is this bicycle from?

6. Rules of Origin Protocol
Integral part of SADC-EU EPA
Negotiated text, catering for interests of all parties
Definition of the concept of ‘originating products’
Wholly obtained
Sufficiently processed
Cumulation
Proof of origin
Movement certificate EUR.1
Invoice declarations
Exemptions
Administrative cooperation
General requirements
Goods qualify for EPA tariff preferences when they are
Either wholly obtained (Article 7), or
Sufficiently worked or processed (Article 8).
taking into account the provisions of Article 9 (Insufficient working or processing).
Rules of Origin Protocol

7. Rules of Origin Protocol
3 Main criteria are used to define what is considered to be "sufficiently worked or processed":
Value percentage
i.e. the value of the non-originating materials must not exceed a certain percentage of the ex-works price of the finished product
Change of tariff classification
Where the non-originating materials used must have a different HS tariff code from the finished product
Specific rules
Where specific criteria to be fulfilled are indicated
General requirements
Goods qualify for EPA tariff preferences when they are
Either wholly obtained (Article 7), or
Sufficiently worked or processed (Article 8).
taking into account the provisions of Article 9 (Insufficient working or processing).
Rules of Origin Protocol

8. Origin rule for jam

9. Making jam Morula fruits (BW, NA) Morula jam (LS) Retailer (EU)
Sugar (SZ)
Rule of origin: HS : Manufacture in which:
All the materials used are classified within a heading other than that of the product;
and
The value of any materials of Chapter 17 used does not exceed 30 % of the ex–works price of the product
Making jam

10. Example – textile sector

11. List rules for cotton fabric

12. Obtaining origin using materials from partner countries
Bilateral cumulation
Diagonal cumulation A B A B C
Cumulation

13. Cumulation, continued R A B C A B D Extended cumulation Cumulation of
processing (full) R A B C A B D
Cumulation, continued

14. Preparatory operations
Fabric from
Bangladesh
Preparatory operations
in ZA or NA
Printing
in BW EU
Textile production

15. Other stuff (nobody said origin rules were simple…)
Principle of territoriality
Non Alteration
Accessories, spare parts and tools
Importation by installments
Accounting segregation
Derogations
Other stuff (nobody said origin rules were simple…)

16. Origin declaration on invoice, delivery note or other commercial document
Approved exporter
Consignments not exceeding €6000 (ca. 60,000 BWP)
Movement certificate EUR.1
Retrospectively issued
Duplicate certificate
Exemption from proof of origin
Small packages (€500)
Travellers' personal luggage (€1200)
Proof of origin

17. How to export to the European Union
EU Trade Helpdesk
Your online guide to access the EU market
tradehelpdesk.europa.eu
European Commission, Directorate-General for Trade

18. What is the EU Trade Helpdesk?
A website on how to export to the EU
A source of information on EU import duties, product requirements, rules of origin, internal taxes and trade statistics
A database on trade in goods
Usable free of charge, without registration formalities
Available in English, French, Spanish and Portuguese

19. What can you find on the Trade Helpdesk website?
EU product requirements for goods imported to or circulating on the EU single market (health, safety, technical standards, marketing standards)
EU custom duties, duty discounts, quota database
How to benefit from reduced duties – the rules and proofs of origin according to trade agreements or preferential schemes
Who to contact for advice
Competent authorities, customs offices, chambers of commerce in EU countries
Trade statistics
All recent trade flows – product by product, country by country

20. How to access EU data for your product?
Go to tradehelpdesk.europa.eu
Fill in the exporting and importing country and the product you intend to export to the EU; if needed, click on "find your product code" and browse the "tree" of classification codes to find the correct code for your product
Click on "view rates and requirements"

21. EU data for your product
1st tab: import procedures
Three types of information:
Information on the EU's import procedures
The main documents you need for customs clearance
Import formalities and competent authorities for the EU country you have defined as importing country

22. EU data for your product
2nd tab: product requirements
The list of EU requirements applying to your product.
These documents explain each requirement and link to the EU law it is based on.
They also include
specific certificates you may need,
the competent authorities in the importing country,
More information relating to the importing country, e.g. specific labelling or packaging provisions.

23. EU data for your product
3rd tab: import duties
The first row shows the import duty exporters from non-EU countries should generally pay
The following rows show which duty discount you can claim for your product according to either
the Generalized System of Preferences the EU grants to lower-middle income countries, or
a trade agreement signed between the country you are exporting from and the European Union
This tab will also show you any quota or antidumping duties

24. EU data for your product
4th tab: internal taxes
The internal taxes for your product in the EU importing country you selected.
This information includes:
Value-Added-Tax (VAT)
Excise duty applying to alcoholic beverages, manufactured tobacco products and energy products, e.g. motor and heating fuels
Note that internal taxes are not harmonised in the EU and hence they vary from one country to another.

25. EU data for your product
5th tab: rules of origin
If your product can benefit from a duty discount this tab will show you the conditions, i.e. the rules of origin for your product.
These rules describe how "originating status" is determined in the agreement or preferential scheme in place.
You will find more information relating to the rules of origin of a specific agreement, e.g. the "cumulation" provisions and the "proofs of origin" in the Trade Helpdesk Website section "Rules of Origin".

26. EU Trade Helpdesk Visit the Helpdesk at: tradehelpdesk.europa.eu

27. Thank you for your attention
John Taylor Trade Counsellor EU Delegation to Botswana and SADC