1. M. Isabel García Catalán
The EU Reform
of the Rules of Origin
M. Isabel García Catalán
European Commission
DG TRADE G/3

2. New aspects
Comparison with other Rules of Origin
with a development perspective
The new FTAs

3. Conflict rule: Ownership
The ROO of the reform
Main features:
Wholly obtained products
Fish products : Relaxation of the vessels criteria: the crew requirement is eliminated
Possibility to apply cumulatively the other requirements (flag, registration, ownership) between countries involved in regional cumulation.
Sufficiently transformed products
List of rules of origin product by product
An across-the-board Value Added criterion
+ alternative CTC (with exceptions, i.e. T&C)
- Tolerance rule fixed at 15% (with exception for textiles and agriculture?)
Certificates of origin
Self certification
No rules for agricultural and processed agricultural products yet
Conflict rule: Ownership

4. The ROO of the reform Fisheries: the vessels conditions
Captures outside of territorial waters of the beneficiary country:
Fish will be originating if the vessels fulfill the following criteria:
Current rules Reform
Flag Flag
Registration Registration
Ownership Ownership
Officer+ Crew requirement

5. The ROO of the reform Main features: CTC or local content criterion
30% local content threshold. Exceptions
LDCs
A short list of industrial products:
50% local content
T&C: single transformation
Other cases: iron and steel,…
Non-LDCs
A longer list of industrial products:
50% local content
T&C: double transformation
Other cases: iron and steel,…

6. The ROO of the reform + + + Textiles and clothing
Current situation Reform
Double transformation (non-LDCs)
Double transformation Single transformation (LDCs)
Manufacture from yarn Manufacture from fabric + + +
Combination of processing
operations that confer origin:
Spinning, weaving, printing,..

7. The ROO of the reform Main features: Self certification
To request certificates of origin to the exporting customs administration is not any longer needed: exporters can issue their statements on origin
In order to do so, exporters need to be registered
The customs administration of the exporting country should put in place registration systems and ensure the correct functioning

8. The ROO of the reform Main features: Cumulation
Cumulation within regions:
Central America-Andean-Community-Panama
ASEAN
SAARC
Requirement on a 50% VA in the last country of processing
Cumulation between LDCs and non-LDCs even if different ROO apply.
Placeholder: Cumulation between GSP countries and countries with which the EU has signed FTAs

9. The ROO of the reform GSP system and the Market Access Regulation GSP
Vessels: No crew requirement
T&C: Single transformation: LDCs
T&C: Double transformation: Non-LDCs
PSR: 30% local content: LDCs
PSR: between 30% and 50% non-LDCs
Tolerance: 15% (exceptions?)
Cumulation: Diagonal within regions
MAR
Vessels: No crew requirement
Processed Fish: global sourcing (Pacific)
T&C: single transformation
PSR: 50% and 75% local content
Tolerance: 15%
Cumulation: All ACPs = single territory + full with OCTs + diagonal neighbouring

10. The ROO for the new FTAs
Groups of beneficiary countries by zones of cumulation
Chile
Mexico
Reciprocal
Preferences
Balkans
Pan-Euro-Med EU
South Africa
Autonomous
Preferences
GSP countries
XS XK ME BA
EPAs/OCTs

11. The ROO for the new FTAs
Groups of beneficiary countries by zones of cumulation
Chile
Korea
India
GCC CA
CAN
ASEAN
Mexico
Reciprocal
Preferences
Ukraine
Pan-Euro-Med EU
Balkans
South Africa
Autonomous
Preferences
GSP countries
XS XK ME BA
EPAs/OCTs

12. The rules of origin of the new FTAs
Three methods depending on the products
Value added: between 50% and 75% local content in the country of the preference
Double transformation (from yarn to fabric and from fabric to clothing)
Tolerance of 10%
Bilateral or diagonal cumulation
Introduction of a revision clause to move to the rules of the reform