Preferential Rules Of Origin

Preferential rules of origin in Global Commerce Policy

In this regard, preferential rules of origin is: a system of rules and criteria determining whether a product exported from one partner to a free-trade agreement to another partner will be considered a product of that partner and admitted under the applicable preferential rules, i.e. The entries on trade policy in the Encyclopedia are here. Usually free of customs duties. The entries on trade policy are here. If the decision is that the product does not originate in the other partner because, for example, it has not undergone substantial transformation or has had little value added to it there, the applicable tariff rate usually would be the most-favoured-nation (MFN) rate. Rules of origin, whether preferential or not, are different for each free-trade agreement. NAFTA, indeed, has multiple rules of origin. The complexity of preferential rules of origin is considerable, and all attempts at harmonization or rationalization so far have ended in failure. See also Pan-European Cumulative Area.[1]

Preferential rules of originin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Preferential rules of origin” entry (OAS)

See Also