June.26 th ， 2006 General Administration of Customs of P.R.C Scientific Approach on the Rules of Origin Helps Boost Full-swing Development of Regional Economic Integration Mr. Kang Qiang Deputy Director General, Department of Duty Collection of GAC.

June.26 th ， 2006 General Administration of Customs of P.R.C Subjects The highlighted roles of rules of origin in the process of regional economic integration. Significant roles of preferential trade arrangements in China ’ s economy. The circumstances under which rules of origin may be counterproductive to regional economic development. China ’ s perspective: on the way to tell the success story.

June.26 th ， 2006 General Administration of Customs of P.R.C The highlighted roles of rules of origin in the process of regional economic integration I.

June.26 th ， 2006 General Administration of Customs of P.R.C I. The highlighted roles of rules of origin in the process of regional economic integration. ● Scale economy effects are achieved for the parties in the region through eliminating trade discrimination and barrier. ● Effective prevention of trade diversion to the non- preferential parties. ● Upgrading the allocation of resources among the parties and retooling industrial structure.

June.26 th ， 2006 General Administration of Customs of P.R.C II. Significant roles of preferential trade arrangements in China ’ s economy

June.26 th ， 2006 General Administration of Customs of P.R.C II. Significant roles of preferential trade arrangements in China ’ s economy. ● Stimulus in the significant trade augmentation. In 2005 the overall import and export trade volume between China and its trade partners under preferential trade agreements reached US $ billion, a 26% year-on-year increase.

June.26 th ， 2006 General Administration of Customs of P.R.C II. Significant roles of preferential trade arrangements in China ’ s economy. ● Rationalizing resource allocation and cementing economic ties. Acclaimed as the world ’ manufacturing hub, China consumed up many of resource reserves in quest for marginally low added value accrued from export-driven production. In 2005, for example, China ’ s just-in-time importation of 670,000 tons of polymers of styrene from the trade partners under Trade Agreement for Asia & Pacific.

June.26 th ， 2006 General Administration of Customs of P.R.C ● Highlighting its role play in the international economic regionalization process. By maintaining the contribution rate over 10% and 12% respectively for the world economic growth and global trade growth, China has become an important momentum to boost the economic development in the Asia and the Pacific region in particular and in the world as a whole. the principle of “ Sharing the company of the good neighbourliness ” as chinese strategic diplomacy.

June.26 th ， 2006 General Administration of Customs of P.R.C III. The circumstances under which rules of origin may be counterproductive to regional economic development

June.26 th ， 2006 General Administration of Customs of P.R.C III. Stringent rules of origin hinder regional economic development ● Tight-laced ROOs may turn into as new technological barrier. ● Stringent rules of origin affect small and medium-sized enterprises. ● Complexity ROOs may add up enterprises ’ cost.

June.26 th ， 2006 General Administration of Customs of P.R.C IV. China ’ s perspective: on the way to tell the success story

June.26 th ， 2006 General Administration of Customs of P.R.C IV. China ’ s perspective: on the way to tell the success story. ● Pragmatic ROOs are the essential steppingstones to achieve the preferential trade arrangements. Preferential rules of origin are laid down on the basis of actual production capacity of countries or regions under preferential agreements for the mutual benefits.

June.26 th ， 2006 General Administration of Customs of P.R.C IV. China ’ s perspective: on the way to tell the success story. ● Electronically interfaced verification system provides effective safeguard to secure the legitimate and efficient trade flow. Electronically interfaced verification system under CEPA arrangements has been established by jointly between Mainland China and Hong Kong and Macau to transmit CEPA-related trade data through dedicated cables between the China E-port center with the designated issuing authorities in HK and Macau.

June.26 th ， 2006 General Administration of Customs of P.R.C IV. China ’ s perspective: on the way to tell the success story. ● Standard and uniform recordation of certificate of origin and other documentation dossier ensures smooth implementation of preferential rules of origin. It is China Customs practice to maintain the recordation and documentation dossier on all the specimens of layout key of the certificates of origin, signatures of competent officers and official seals of the issuing authorities.

June.26 th ， 2006 General Administration of Customs of P.R.C IV. China ’ s perspective: on the way to tell the success story. ● Closer cooperation between the issuing authorities between the parties is indispensable. the mechanism of mutual administrative assistance between the issuing authorities and enforcement agencies of both sides with a view to preventing and combating the circumvention of rules of origin, fraud and smuggling and safeguarding economic interest of both sides.

June.26 th ， 2006 General Administration of Customs of P.R.C IV. China ’ s perspective: on the way to tell the success story. ● The effective and efficient ROOs operation undertaken by China Customs provide further impetus to the FTA implementation. To ensure the implementation of FTA on a sound and healthy footing, China Customs have issued 40 legislations to provide a consolidated legal basis.

June.26 th ， 2006 General Administration of Customs of P.R.C