RESTRICTED
WORLD TRADE G/RO/W/15
16August 1996
ORGANIZATION(96-3232)
Original: English Committee onRules ofOrigin
PROPOSAL BYTHE UNITED STATES PURSUANT TO
ARTICLE 9.3(a) OFTHE AGREEMENT ONRULES OFORIGIN
Thefollowingcommunication,dated25July1996,hasbeenreceivedfromthePermanentMission
oftheUnited States, withtherequest thatitbecirculated totheMembers andinscribed asanagenda
itemforconsideration atthenextmeeting oftheCommittee.
_______________
Under themandate oftheWTO Agreement onRules ofOrigin related totheHarmonization
Work Programme, theWorld Customs Organization 'sTechnical Committee onRules ofOrigin is
currently providing theWTO Committee onRules ofOrigin withitsinterpretations andopinions.
Likewise, theWTO Committee isgiving itsongoing consideration tothose interpretations andopinions
oftheTechnical Committee. Article 9.3(a) oftheAgreement provides thattheWTO Committee may
request theTechnical Committee "torefine orelaborate itswork and/or todevelop newapproaches."
Thedevelopment ofproduct-specific rulesiscurrently being conducted under theterms ofthe
second phase oftheHarmonization Work Programme. Inaccordance withtheAgreement, thistask
includes considering andelaborating upon, onthebasis ofthecriterion ofsubstantial transformation,
"theuseofchange intariffsubheading orheading when developing rulesoforigin forparticular products
oraproduct sector and,ifappropriate, theminimum change within thenomenclature thatmeets this
criterion."
Itisclearthatthepaceandefficiency oftheWork Programme would beincreased ifaspecific
"starting point" wasusedasananalytical methodology when performing thetaskmandated under the
Agreement. TheWTO Committee canrequest thatsucha"starting point" beundertaken asanew
approach bytheTechnical Committee initswork inthesecond phase oftheWork Programme.
Aspartoftheongoing consideration of"theminimum change within thenomenclature" which
meets thecriterion ofsubstantial transformation, suchananalytical methodology could beintheform
ofarebuttable presumption thatsubstantial transformation isdeemed tohavetaken placewhenassembly
orother processing operation results inachange fromatariffcategory providing for"parts" toatariff
category providing forthe"goods." Foracertain product, aparticular Member mayhaveaview
differing from thepresumption thatassembling parts intothatproduct confers origin. TheMember
could present aspecific rebuttal -atthetimetheCommittees areaddressing thedevelopment ofthe
specific ruleoforigin forthatproduct.
This"startingpoint"wouldnotsimplybeanapproachintendedtoassisttheTechnicalCommittee
inincreasing itsanalytical efficiency. Itwould alsoadvance thefundamental intent oftheWTO
Agreement onRules ofOrigin, which istoensure that"rules oforigin themselves donotcreate
unnecessary obstacles totrade" and"areprepared inanimpartial, transparent, predictable andconsistent
manner."