RULES OF ORIGIN IN FOREIGN TRADE TPS OIC

RULES OF ORIGIN IN FOREIGN TRADE TPS OIC CERTIFICATE OF ORIGIN AND ITS TECHNICAL CHARACTERISTICS FOREIGN ECONOMIC RELATIONS DEPARTMENT DIRECTORATE of FOREIGN TRADE 1 17. 03. 2018

AGEND A 1. What is Origin and what are the Rules of Origin? 2. Why Origin is important? 3. Preferential Rules of Origin and its 2 Characteristics 4. Trade Preferential System Among the Member States of the Organization of Islamic Cooperation -OIC (TPS OIC) and Rules of Origin 5. TPS OIC Certificate of Origin and its Technical Characteristics 6. TOBB’s practices of Certificate of Origin and 17. 03. 2018 Movement

1. What is Origin and what are the Rules of Origin? Origin is the economic nationality of goods. Origin of the goods is the determining factor for the trade policy measures applied on the goods. 3 17. 03. 2018

RULES of ORIGIN Rules of origin; specific rules to identify the origin of goods Rules of origin as in the Kyoto Convention; specific provisions, developed from principles established by national legislation or international agreements, applied by a country to determine the origin of goods; Preferential Rules of Origin 4 Common Characteristics: The need for set of rules to identify the economic nationality of Non-Preferential Rules of Origin 17. 03. 2018

Non Preferential Origin Annex of the Founding Treaty of the World Trade Organization (WTO), First Article of the Agreement on Rules of Origin; non-preferential rules of origin; “shall be defined as those laws, regulations and administrative determinations of general application applied by any Member to determine the country of origin of goods provided such rules of origin are not related to contractual or autonomous trade regimes leading to the granting of tariff preferences” 5 17. 03. 2018

NON PREFERENTIAL ORIGIN is applied for • the goods that are subject to non-preferential commercial policy instruments; • anti-dumping and countervailing duties, • safeguard measures, • Quotas or quantitative restrictions • the compilation of foreign trade statistics, • origin marking 6 17. 03. 2018

Non preferential origin of goods are proved by the “Certificate of Origin”. According to 2013 data of the International Chamber of Commerce; CHINA 7 GERMANY TURKEY 17. 03. 2018

2. Why Origin is important? • Anti-dumping, • Countervailing (compensatory) duties, • Safeguard measures and quantitative restrictions 8 17. 03. 2018

2. Why Origin is important? GOODS Country of origin 9 Country from where the goods come 17. 03. 2018

3. Preferential Rules of Origin and its Characteristics In Annex II of the WTO Agreement on Rules of Origin, preferential rules of origin are defined as; “those laws, regulations and administrative determinations of general application applied by any Member to determine whether goods qualify for preferential treatment under contractual or autonomous trade regimes leading to the granting of tariff preferences”. 10 17. 03. 2018

3. Preferential Rules of Origin and its Characteristics Preferent ial Origin Goods wholly produced in the Signatory country 11 the non-origin materials used in the manufacturing of these goods in question underwent working or processing as indicated in origin protocols. 17. 03. 2018

3. Preferential Rules of Origin and its Characteristic • Trade Agreements • Certificate of Origin 12 17. 03. 2018

4. Trade Preferential System Among the Member States of the Organization of Islamic Cooperation-OIC (TPS OIC) and Rules of Origin TPS-OIC AGREEMENT ON RULES OF ORIGIN Under the heading «Goods with Origin» , there are; v General Conditions v Wholly Obtained Goods v Goods that underwent adequate working and processing v Cumulation in Participating States v Inadequate working and processing 13 17. 03. 2018

IMPLEMENTATION of the TPS-OIC RULES of ORIGIN If goods meet the TPS OIC Rules of Origin TPS OIC Certificate of Origin 14 17. 03. 2018

5. TPS OIC Certificate of Origin and its Technical Characteristics TPS-OIC Certificate of Origin v It is the certificate to be used in preferential trade activities amongst the Members of the Organization for Islamic Cooperation (OIC). v While goods originated from a Participating State is imported to another Participating State, Framework Agreement is the basis of action upon the submission of TPS-OIC Certificate of Origin annexed to the Agreement. 15 17. 03. 2018

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5. TPS OIC Certificate of Origin and its Technical Characteristics • The Customs or the competent authorities of the Participating States • Each form shall measure 210 x 297 mm • the paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 25 g/m 2. – 5 mm or +8 mm of tolerance in length. • First copy of the form shall have a printed green guilloche pattern background. 20 17. 03. 2018

5. TPS OIC Certificate of Origin and its Technical Characteristics Serial numbers ; The same serial number must be registered Referance number of the Participating States In the Turkish practice, a serial number comprised of one letter and 7 -digits is used. In the Turkish practice, TPS OIC Certificate of Origins is comprised of 5 copies and an application form. 21 17. 03. 2018

5. TPS-OIC Certificate of Origin and Technical Specifications MASS PRINTING - TOBB Pre-print specimen of TPS-OIC Certificate of Origin Approval of the Ministry of Customs and Trade Regulation 22 17. 03. 2018

6. TOBB’s Practices of Certificate of Movement and Origin Certificates of Movement and Origin – Legal Basis • Law of the Turkish Union of Chambers and Commodity Exchanges Authorized Body 23 17. 03. 2018

6. TOBB’s Practices of Certificate of Movement and Origin Certificates of Movement and Origin 1. A. TR Movement Certificate 2. A. TR Movement Certificate with Simplified Procedure 3. EUR. 1 Movement Certificate 4. EUR. MED Movement Certificate 5. Certificate of Origin (ABC) 6. Special Origin Testimonies 7. TPS-OIC Certificate of Origin 24 17. 03. 2018

TOBB Activities within the scope of Printing of the Certificates of Movement and Origin, their Approval and Sales to Chambers Printing of the Certificate Control and approval of the Chambers Purchasing by the Chambers Purchasing of the Companies from the Chambers 25 17. 03. 2018

Drafting a new Certificate of Origin or Revising the Existing Certificate Mass Printing Need for a new certificate or a revision of the existing one 26 Approval of the Ministry of Customs and Trade Regulation on the Determinatio n of the Preferential Origin of the Goods 17. 03. 2018

7. Q & A 27 17. 03. 2018

THANK YOU Ayşe Mehtap EKİNCİ Director of Foreign Trade ayse. ekinci@tobb. org. tr 28 17. 03. 2018