Understanding on rules of origin needed<\/p>\n
JAKARTA (JP): Businesses must have a sound understanding of
\nthe rules of origin stipulated in international trade because the
\nadoption of such policies will be unavoidable in the future, a
\nMinistry of Trade official says.<\/p>\n
Director for Foreign Trade Hatanto Reksodiputro said that each
\ncountry or regional trade grouping has their own set of rules and
\nthat presently there is no general agreement between countries on
\nrules of origin.<\/p>\n
\"There are over 100 rules of origin existing in the world
\ntoday, so it is important for businesses to fully understand them
\nto be able to take part in the global market,\" he told reporters.<\/p>\n
Rules of origin, he explained, determine the origin of a
\ncertain product, which is generally regarded as the last country
\nin which the product has undergone a substantial part of its
\nproduction process.<\/p>\n
Determining the origin of a product has become increasingly
\ndifficult as many of today's products are made, assembled and
\nharvested in different countries, Hatanto said.<\/p>\n
\"The problem is complicated because the World Trade
\nOrganization does not have guidelines for such rules,\" he said.<\/p>\n
Hatanto said that a number of industrialized countries, such
\nas the United States, Japan and members of the European Union,
\nhave established their own rules of origin as part of their trade
\npolicies.<\/p>\n
Protection<\/p>\n
\"But rules of origin have evolved into a means of protection
\nand trade 'harassment',\" he said.<\/p>\n
He said rules of origin tend to be discriminatory and can
\noften lead to regional trading agreements.<\/p>\n
He also said that some countries use rules of origins to
\nconduct anti-dumping investigations and establish evidence of
\ncircumvention practices, even though the Uruguay Round of General
\nAgreement on Tariffs and Trade (GATT) negotiations did not reach
\nan agreement on anti-circumvention.<\/p>\n
\"One of the terms agreed to in the 1994 Marrakesh meeting of
\nGATT ambassadors was that rules of origin should not be used as a
\nnon-tariff barrier,\" Hatanto said.<\/p>\n
The WTO, established earlier this year to replace the GATT,
\ntogether with the World Customs Organization, are presently
\nmaking an effort to harmonize non-preferential rules of origin.<\/p>\n
\"This harmonization is needed so WTO members can implement the
\nrules transparently and uniformly without causing trade
\ndistortions,\" he said.<\/p>\n
Hatanto said Indonesia fully supports the need to harmonize
\nthe existing rules of origin, but does not consider the rules to
\nbe necessary.<\/p>\n
\"We still need lots of imports to support our growing
\nindustries and export commodities,\" he explained.<\/p>\n
Hatanto said yesterday that to increase the public's
\nunderstanding, the Ministry of Trade would hold a two-day
\nseminar, starting tomorrow, explaining rules of origin.<\/p>\n
The seminar will discuss the rules currently being imposed by
\ncertain countries and those having an impact on Indonesian
\nexports.<\/p>\n
Speakers at the seminar will include Edwin Vermulst, an expert
\non rules of origin from the European Union, and Teruo Ujiie, an
\nexpert from the United Nations Conference on Trade and
\nDevelopment. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/understanding-on-rules-of-origin-needed-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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