Brussels, 18/11/2010 (Agence Europe) - In good news for developing countries eligible for the generalised system of preferences (GSP) for their exports to the EU, Community rules of origin are about to be made more flexible, modernised and simplified to make them easier to understand and to ensure that they are used correctly.
On Thursday 18 November, the European Commission adopted a regulation revising the rules of origin which date back to the 1970s and which have been criticised for being too complex, too stringent and out-of-date. 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 preferential customs tariffs.
“By updating the EU's rules of origin, we will help to ensure that developing countries really benefit from the trade preferences on offer to them, and that the world's poorest don't lose out due to unnecessary complexities in our systems,” said Taxation, Customs, Anti-Fraud and Audit Commissioner Algirdas Šemeta.
The new rules take into account the specificities of the different sectors of production and particular processing requirements. The new rules take into account the specificities of different sectors of production and particular processing requirements, amongst other things. Special provisions (which are already applicable to ACP - Africa, Caribbean, Pacific - countries) are included for Least Developed Countries (LDCs) which will allow them to claim origin for many more goods which are processed in their territories, even if up to 70% of the primary materials do not originate there.
To prevent fraud, the proposal puts forward a new procedure for demonstrating proof of origin, which places more responsibility on the operators. From 2017, the current system of certification of origin carried out by the third country authorities will be replaced by statements of origin made out directly by exporters registered via an electronic system. This will allow the authorities of the exporting country to re-focus their resources on better controls against fraud and abuse, while reducing red-tape for businesses, the Commission points out. (A.N./transl.rt)