Vision Group Report: Invigorating the Indonesia-EU Partnership

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76 1. INTRODUCTION Rules of Origin are used to determine the criteria to decide whether goods were really produced or manufactured in the beneficiary country to which the preferential tariff treatment is granted. To be considered as originating in the beneficiary country concerned and thus to be able to benefit from the preferential treatment, goods must be wholly obtained (e.g. grown, mined) there or, where this is not the case, have undergone sufficient processing there. The rules of origin define “sufficient processing” by way of a list of origin criteria that vary from product to product. 2. RULES OF ORIGIN IN FREE TRADE AGREEMENTS XII RULES OF ORIGIN Free trade agreements (FTA) should include an agreement on ROO. ROO are used to determine whether goods traded between parties qualify for access to the tariff under the agreement. They are necessary to ensure that the benefits reciprocally negotiated under the agreement accrue principally to the parties to that agreement. Generally, to qualify for preferential tariff treatment under an FTA, a good must fall into one of three categories. • The first category covers goods that are wholly obtained – that is, wholly sourced, produced or manufactured – in the territory of the FTA parties. • The second category involves products manufactured in the territory of the FTA parties entirely from materials that themselves satisfy a ROO. • The third category involves products using non-originating materials but produced in such a way as to satisfy a prescribed ROO. To qualify for preferential tariff treatment as originating goods on the third category, goods must undergo substantial transformation. • Change in tariff classification method requires a good, after production, to be classified under a sufficiently different tariff classification of the Harmonized Commodity Description and Coding System from the classification of the non-originating imported component materials. • Value added method prescribes a threshold proportion of the value of a good that must be derived from materials and processing within the territory of an FTA party. • Processing method requires specific manufacturing or processing operations to be undertaken in an FTA party’s territory, such as a chemical reaction. 3. REVISED RULES OF ORIGIN UNDER THE EU GSP REGIME The European Commission on 18 November 2010 adopted a regulation revising rules of origin for products imported under the generalised system of preferences (GSP). This regulation relaxes and simplifies rules and procedures for developing countries wishing to access the EU’s preferential trade arrangements, while ensuring the necessary controls are in place to prevent fraud. The new rules of origin apply from 1 January 2011. The Regulation adopted by the Commission today will considerably simplify the rules of origin so that they are easier for developing countries to understand and to comply with. The new rules take into account the specificities of different sectors of production and particular processing requirements, amongst other things.
The proposal also puts forward a new procedure for making out proofs 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 underlying principles for the new regulation, namely, simplification and development-friendliness, were laid down in a Communication on the future of rules of origin in preferential trade arrangements adopted by the European Commission on 16 March 2005 following a wide-ranging debate initiated by a Green Paper of 18 December 2003. The Communication set out a new approach to rules of origin and envisaged that the first concrete application should be to the GSP. 4. FOR MORE INFORMATION http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/index_en.htm 77
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Invigorating The Indonesia-EU Partn
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Abbreviations ACP Africa, Caribbean
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SUMMARY OF THE TERMS OF REFERENCE F
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CONCLUSIONS AND RECOMMENDATIONS 7
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often be accentuated by the combina
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20. Furthermore, in order to increa
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Relations between Indonesia and the
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eaching almost 7% in the last quart
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The existing EU and Indonesia allia
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Architecture of the CEPA 20 4 The V
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Market Access in Goods 22 5
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24 Members have an effective opport
Page 28 and 29: Services are of increasing importan
Page 30 and 31: manufacturing and services (banking
Page 32 and 33: trade will bring to bear considerab
Page 34 and 35: poor management 5 . As a result the
Page 36 and 37: Competition policy is a necessary m
Page 38 and 39: increasingly demanding “environme
Page 40 and 41: 38 14 Communication strategy
Page 43 and 44: PRODUCT SECTORS OF SPECIAL IMPORTAN
Page 45 and 46: are concerns in Indonesia over poss
Page 47 and 48: nature of complex and fairly aggreg
Page 49 and 50: to exploit potentially beneficial c
Page 51 and 52: In the political cooperation area,
Page 55 and 56: BACKGROUND NOTES 53
Page 57 and 58: 2. DEVELOPMENTS Even though the tra
Page 59 and 60: 1. to complete its ambitious negoti
Page 61 and 62: Data collected from an investment s
Page 63 and 64: direct recourse to international ar
Page 65 and 66: 2.2. EU Member States EU Member Sta
Page 67 and 68: - Component 2 (implemented by UNICE
Page 69 and 70: 7. Indonesia to improve the investm
Page 71 and 72: Indonesia is the largest timber exp
Page 73 and 74: 3. TECHNICAL COOPERATION The REACH
Page 75 and 76: The implementation of National Indo
Page 77: Cooperation and coordination betwee
Page 81 and 82: The EU’s objectives are to secure
Page 84 and 85: 82 1. INTRODUCTION Indonesia and th
Page 86 and 87: In the last decade, the expansion o
Page 88 and 89: Indonesia’s automotives industry
Page 90 and 91: 88 Rapidly expanding services secto
Page 92 and 93: There is remarkable scope for coope
Page 94 and 95: In Indonesia the processed foods in
Page 96 and 97: Electronics is Indonesia’s larges
Page 98 and 99: One of the fastest growing segments
Page 100 and 101: The textile, clothing and footwear
Page 102 and 103: 100
Page 104: Delegation of the European Union In
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Vision Group Report: Invigorating the Indonesia-EU Partnership

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