1. 201011493 조정근 201210392 지 해

2. Contents 1) Rules of Origin 2) Reasons for ROO 3) What should be the criterion for ROO 4) US-Morocco FTA in Textiles

3. Rules of Origin

4. Non preferential (general) prefer ential

6. Reasons for ROO 1.International division of labor =“global outsourcing” 2.Worldwide trade facilitations 3.Multi-purpose apply for -Management of quotas -National statistics -Anti-dumping measures

7. Rules of Origin

8. Wholly obtained and produced OR Substantial transformation

9. Natural products & Goods made from natural products which are entirely obtained in one country comprising products extracted

11. ◎ Change of the Tariff Classification ◎ Percentage of value addition ◎ Specific processing operations

13. ◎ For the materials imported, the dutiable value at importation or In the case of materials of undetermined origin ◎ For the goods produced, either the ex-works price or the price at exportation

16. Brief about textiles Fiber -Staple fibers -Filament fibers

17. Brief about textiles Yarn -Single -plied

18. Brief about textiles Fabric-woven-knit-non-woven

19. U.S. – Morocco FTA (Textile & Apparel Preference Rules)

20. Three possible Duty rates Products of Morocco can be eligible for three different duty rates depending on the inputs(raw materials) and productionProducts of Morocco can be eligible for three different duty rates depending on the inputs(raw materials) and production For the majority of qualifying textile products, tariffs will be eliminated over six yearsFor the majority of qualifying textile products, tariffs will be eliminated over six years

21. Three possible Duty rates All originating textiles and wearing apparel will be duty freeAll originating textiles and wearing apparel will be duty free

22. “Originating” Goods An “Originating” good meets the applicable FTA preference rule of origin An “Originating” good meets the applicable FTA preference rule of origin A “Non-Originating” good does NOT meet the applicable preference rule of origin.

23. Average U.S Duty Rates

24. Example of High U.S. Duty Nylon/Spandex Knit Top HTS 6109.90.10 Nylon/Spandex Knit Top HTS 6109.90.10 Non-FTA Rate = 32% Non-FTA Rate = 32% FTA Duty Rate = 0% FTA Duty Rate = 0% (free) (free)

25. Example of High U.S. Duty Cotton Knit Shirt Cotton Knit Shirt HTS 6105.10.00 HTS 6105.10.00 Non-FTA Rate =19.7% Non-FTA Rate =19.7% FTA Duty Rate = 0% FTA Duty Rate = 0% (free) (free)