Republic of Turkey MINISTRY OF CUSTOMS AND TRADE TPS-OIC Rules of Origin Directorate General of the EU and External Relations 2015, Ankara
TPS-OIC Rules of Origin What is TPS-OIC? q Instrument of COMCEC to foster intra – OIC trade q Three Pillars: q Framework Agreement q PRETAS q Rules of Origin
TPS-OIC Rules of Origin Three Pillars of TPS-OIC q q + Framework Agreement PRETAS q Rules of Origin = Legal basis of TPS-OIC System completed
TPS-OIC Rules of Origin Steps towards practice Required: q Submission of the list of concessions q Completion of internal legislative procedures q Completion of administrative issues
TPS-OIC Rules of Origin Chapters of TPS-OIC Ro. O q I. General Provisions q II. Originating Products q III. Territorial Requirements q IV. TPS-OIC Certificate of Origin q V. Arrangements for Administrative Cooperation q VI. Final Provisions
TPS-OIC Rules of Origin Chapter I General Provisions q Article 1 – Scope q Article 2 - Definitions
TPS-OIC Rules of Origin Chapter II Originating Products q Article 3 – General Requirements q Article 4 - Wholly Produced or Obtained Products q Article 5 - Sufficiently Worked or Processed Products q Article 6 - Cumulation in the Participating States
TPS-OIC Rules of Origin Chapter II Originating Products q Article 7 - Insufficient Working or Processing q Article 8 - Unit of Qualification q Article 9 - Accessories, Spare Parts and Tools q Article 10 – Sets q Article 11 – Neutral Elements q Article 12 – Prohibition
TPS-OIC Rules of Origin Chapter II Products eligible for preferential regime According to Article 3, products eligible for preferential regime should: q be wholly produced or obtained OR q have been undergone sufficient working or processing in the manufacturing Party
TPS-OIC Rules of Origin Chapter II Wholly produced or obtained products According to Article 4, wholly produced or obtained products are: q q q 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…
TPS-OIC Rules of Origin Chapter II Sufficient workings or processings Article 5 sets the value added criterion if non originating material is used in production: 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. )
TPS-OIC Rules of Origin If the materials originating in a third country used in the production If do the materials originating in a 3 rd country satisfy the 60 % value added rule (are they sufficiently worked or processed) ? originating in Turkey YES NO not acquired originating status
TPS-OIC Rules of Origin Chapter II – Sufficiently Working-Processing VIETNAM Standart Certificate of Origin Fabric TURKEY TPS-OIC Certificate of Origin Shirt PAKISTAN
TPS-OIC Rules of Origin Chapter II Cumulation Article 6 stipulates the cumulation between the Parties provided that : • 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)
TPS-OIC Rules of Origin If only the materials originating in the contracting parties are used in the production Are workings or processings in Turkey beyond insufficient workings and processings? originating in Turkey YES NO 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 NO The country of which the materials with highest value are originating in
TPS-OIC Rules of Origin Chapter II Cumulation PAKISTAN SHIRT TPS-OIC Certificate of Origin FABRIC TPS-OIC Certificate of Origin TURKEY
TPS-OIC Rules of Origin Chapter II Minimal Operations (Insufficient Working or Processings) Article 7 deems some operations as insufficient to confer origin even if cumulation is applied between parties or value added criterion is met: Packing, simple mixing, bottling, labelling, marking, sorting or grading, splitting into lots, simple assembly, washing, cleaning, ironing, etc…
TPS-OIC Rules of Origin Chapter II Ex-Works Price - 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 Ex-works price does not include; -Internal taxes (repaid when the endproduct is exported) - Costs of transporting the end-product to the customer.
TPS-OIC Rules of Origin Chapter II Categories of the goods to benefit from preferences q q wholly produced or obtained goods, goods of which the materials originating in other Parties used in their production, q goods have been undergone sufficient workings or processings in the manufacturing Party, provided that ALL conditions under Chapter II have been satisfied
TPS-OIC Rules of Origin Chapter III TERRITORIAL REQUIREMENTS q Article 13 - Direct Consignment q Article 14 - Exhibitions
TPS-OIC Rules of Origin Chapter IV TPS-OIC CERTIFICATE OF ORIGIN q Article 15 - General Requirements q Article 16 - Procedure for the Issue of a TPS-OIC Certificate of Origin q Article 17 - Certificates of Origin Issued Retrospectively q Article 18 - Issue of a Duplicate TPS-OIC Certificate of Origin
TPS-OIC Rules of Origin Chapter IV TPS-OIC CERTIFICATE OF ORIGIN q Article 19 - Issue of Certificates of Origin on the Basis of a TPS-OIC Certificate of Origin Issued or Made out Previously q Article 20 - Validity of TPS-OIC Certificate of Origin q Article 21 - Submission of TPS-OIC Certificate of Origin
TPS-OIC Rules of Origin Chapter IV TPS-OIC CERTIFICATE OF ORIGIN q Article 22 - Importation by Instalments q Article 23 - Supporting Documents q Article 24 - Preservation of TPS-OIC Certificate of Origin and Supporting Documents q Article 25 - Discrepancies and Formal Errors
TPS-OIC Rules of Origin Chapter V ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION q Article 26 - Mutual assistance q Article 27 - Verification of Certificates of Origin q Article 28 - Dispute Settlement q Article 29 – Penalties q Article 30 – Free Zones
TPS-OIC Rules of Origin Chapter VI FINAL PROVISIONS q Article 31 - Goods in Transit and Storage q Article 32 - Amendments q Article 33 - Entry Into Force q Article 34 – Annex
TPS-OIC Rules of Origin Important Points q Possibility of drawback or exemption from customs duties q Prohibition clause q Direct consignment rule q Certification (Chapter IV) q Administrative cooperation
TPS-OIC Rules of Origin Chapter VI Article 33 - Entry into Force 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.
TPS-OIC Rules of Origin State of Play in Turkey q PRETAS has been approved q List of concessions submitted q TPS-OIC Rules of Origin have been approved q Specimen impression of stamp used by Turkish Customs submitted q Implementing provisions to be published
. 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
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