European Commission adopts regulation on rules of origin

On 18 November 2010 the European Commission adopted a regulation revising rules of origin for products imported under the Generalised System of Preferences (GSP). Rules of origin are used to determine whether imported goods really originate in countries covered by the EU’s preferential trade arrangements, thereby making them eligible for a preferential customs tariff. This regulation aims to considerably simplify these rules to enable developing countries to understand and to comply with more easily and the new rules will apply from 1 January 2011.

The new regulation includes the following:

• Appropriate rules determining the acquisition of origin: whether goods that have been sufficiently worked or processed are adapted to each sector.
• Cumulation of origin: the regional cumulation of origin allowing countries with identical rules of origin to work together for the purpose of manufacturing products eligible for preferential tariff treatment is maintained.
• Efficient procedures / responsibilities of operators and authorities in establishing and controlling origin: a clarification and re-balancing of the rights and obligations of both operators and administrations is established.

The press release and more information on the new proposal are available from here: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/1526&format=HTML&aged=0&language=EN&guiLanguage=en