1. Republic of Turkey MINISTRY OF CUSTOMS AND TRADE TPS-OIC Rules of Origin Directorate General of the EU and External Relations 2015, Ankara

2. TPS-OIC Rules of Origin  Instrument of COMCEC to foster intra – OIC trade  Three Pillars:  Framework Agreement  PRETAS  Rules of Origin What is TPS-OIC?

3. TPS-OIC Rules of Origin  Framework Agreement  PRETAS  Rules of Origin = Legal basis of TPS-OIC System completed Three Pillars of TPS-OIC +

4. TPS-OIC Rules of Origin Required:  Submission of the list of concessions  Completion of internal legislative procedures  Completion of administrative issues Steps towards practice

5. TPS-OIC Rules of Origin  I. General Provisions  II. Originating Products  III. Territorial Requirements  IV. TPS-OIC Certificate of Origin  V. Arrangements for Administrative Cooperation  VI. Final Provisions Chapters of TPS-OIC RoO

6. TPS-OIC Rules of Origin  Article 1 – Scope  Article 2 - Definitions Chapter I General Provisions

7. TPS-OIC Rules of Origin  Article 3 – General Requirements  Article 4 - Wholly Produced or Obtained Products  Article 5 - Sufficiently Worked or Processed Products  Article 6 - Cumulation in the Participating States Chapter II Originating Products

8. TPS-OIC Rules of Origin  Article 7 - Insufficient Working or Processing  Article 8 - Unit of Qualification  Article 9 - Accessories, Spare Parts and Tools  Article 10 – Sets  Article 11 – Neutral Elements  Article 12 – Prohibition Chapter II Originating Products

9. TPS-OIC Rules of Origin According to Article 3, products eligible for preferential regime should: Chapter II Products eligible for preferential regime  be wholly produced or obtained OR  have been undergone sufficient working or processing in the manufacturing Party

10. TPS-OIC Rules of Origin According to Article 4, wholly produced or obtained products are: Chapter II Wholly produced or obtained products  raw or mineral products extracted from soil  agricultural products harvested,  live animals born and raised there,  products obtained from animals born and/or raised there;  products obtained by hunting, fishing or aquaculture activities conducted there; etc…

11. TPS-OIC Rules of Origin Article 5 sets the value added criterion if non originating material is used in production: Chapter II Sufficient workings or processings Non-originating materials can be used in manufacture unless the value of such materials does not exceed 60% of the ex-works price of the product. (70 % in the case of LDCs.)

12. TPS-OIC Rules of Origin If the materials originating in a third country used in the production If do the materials originating in a 3rd country satisfy the 60 % value added rule (are they sufficiently worked or processed) ? originating in Turkey not acquired originating status YES NO

13. TPS-OIC Rules of Origin Chapter II – Sufficiently Working-Processing VIETNAM PAKISTAN Standart Certificate of Origin Fabric TPS-OIC Certificate of Origin Shirt TURKEY

14. TPS-OIC Rules of Origin Article 6 stipulates the cumulation between the Parties provided that : Chapter II Cumulation the working or processing carried out in the manufacturing Party goes beyond the insufficient operations AND the aggregate content originating in the manufacturing Party is not less than 40 % of the ex-works price of the product. (30 % in the case of LDC’s)

15. Are workings or processings in Turkey beyond insufficient workings and processings? YES NO originating in Turkey Is value added in Turkey the highest one compared to the value of the materials originating in each of the contracting parties? YES originating in Turkey The country of which the materials with highest value are originating in NO TPS-OIC Rules of Origin If only the materials originating in the contracting parties are used in the production

16. TPS-OIC Rules of Origin Chapter II Cumulation PAKISTAN TURKEY FABRIC TPS-OIC Certificate of Origin SHIRT TPS-OIC Certificate of Origin

17. TPS-OIC Rules of Origin Article 7 deems some operations as insufficient to confer origin even if cumulation is applied between parties or value added criterion is met: Chapter II Minimal Operations (Insufficient Working or Processings) Packing, simple mixing, bottling, labelling, marking, sorting or grading, splitting into lots, simple assembly, washing, cleaning, ironing, etc…

18. - Originating materials (proof of origin by suppliers declaration or own bookkeeping) - Non originating materials (the customs value at the time of importation) -Wages (Labour costs) -Profits -Overheads (e.g. administrative, selling, marketing expenses) - Costs regarding the IPR’s TPS-OIC Rules of Origin Chapter II Ex-Works Price

19. Ex-works price does not include; -Internal taxes (repaid when the end- product is exported) - Costs of transporting the end-product to the customer. TPS-OIC Rules of Origin Chapter II Ex-Works Price

20. TPS-OIC Rules of Origin Chapter II Categories of the goods to benefit from preferences  wholly produced or obtained goods,  goods of which the materials originating in other Parties used in their production,  goods have been undergone sufficient workings or processings in the manufacturing Party, provided that ALL conditions under Chapter II have been satisfied

21. TPS-OIC Rules of Origin  Article 13 - Direct Consignment  Article 14 - Exhibitions Chapter III TERRITORIAL REQUIREMENTS

22. TPS-OIC Rules of Origin  Article 15 - General Requirements  Article 16 - Procedure for the Issue of a TPS-OIC Certificate of Origin  Article 17 - Certificates of Origin Issued Retrospectively  Article 18 - Issue of a Duplicate TPS-OIC Certificate of Origin Chapter IV TPS-OIC CERTIFICATE OF ORIGIN

23. TPS-OIC Rules of Origin  Article 19 - Issue of Certificates of Origin on the Basis of a TPS-OIC Certificate of Origin Issued or Made out Previously  Article 20 - Validity of TPS-OIC Certificate of Origin  Article 21 - Submission of TPS-OIC Certificate of Origin Chapter IV TPS-OIC CERTIFICATE OF ORIGIN

24. TPS-OIC Rules of Origin  Article 22 - Importation by Instalments  Article 23 - Supporting Documents  Article 24 - Preservation of TPS-OIC Certificate of Origin and Supporting Documents  Article 25 - Discrepancies and Formal Errors Chapter IV TPS-OIC CERTIFICATE OF ORIGIN

25. TPS-OIC Rules of Origin  Article 26 - Mutual assistance  Article 27 - Verification of Certificates of Origin  Article 28 - Dispute Settlement  Article 29 – Penalties  Article 30 – Free Zones Chapter V ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

26. TPS-OIC Rules of Origin  Article 31 - Goods in Transit and Storage  Article 32 - Amendments  Article 33 - Entry Into Force  Article 34 – Annex Chapter VI FINAL PROVISIONS

27. TPS-OIC Rules of Origin  Possibility of drawback or exemption from customs duties  Prohibition clause  Direct consignment rule  Certification (Chapter IV)  Administrative cooperation Important Points

28. TPS-OIC Rules of Origin The TPS-OIC Rules of Origin shall enter into force on the thirtieth day of the date of receipt by the depository of instruments of ratification, acceptance or approval by at least ten Governments of the Participating States. Subsequent accession to this TPS-OIC Rules of Origin by any Participating State shall be effective one month after the date on which it has deposited its instrument of ratification. Chapter VI Article 33 - Entry into Force

29. TPS-OIC Rules of Origin  PRETAS has been approved  List of concessions submitted  TPS-OIC Rules of Origin have been approved  Specimen impression of stamp used by Turkish Customs submitted  Implementing provisions to be published State of Play in Turkey

30. . Thank You. Mr. Bülent Orhan TÜREL Head of Department for Mutual Administrative Cooperation +90 312 449 27 30 28 23 – 24 - 75 b.turel@gtb.gov.tr a.dayioglu@gtb.gov.tr m.kucuk@gtb.gov.tr a.senturk@gtb.gov.tr