조정근 지 해

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

Rules of Origin

Non preferential (general) prefer ential

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

Rules of Origin

Wholly obtained and produced OR Substantial transformation

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

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

◎ 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

Brief about textiles Fiber -Staple fibers -Filament fibers

Brief about textiles Yarn -Single -plied

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

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

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

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

“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.

Average U.S Duty Rates

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

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