World Bank Andean FTA Rules of Origin Video Conference: Textiles & Apparel June 16 th, 2005 Brian Rankin Staples Trade Facilitation Services Ottawa – Canada

Rules of Origin  Rules of origin versus the origin of rules.  Primary issues of concern and lesson learnt – some detailed examples.  Origin Policy under NAFTA: non- traditional alliances including textiles and apparel.

Rules of Origin  The role of the Harmonized System and customs authorities (Costa Rica).  Understanding the regional production process and tariff elimination sequencing.  Common and Uniform Regulations.

Rules of Origin  High tariff inputs versus low tariff inputs and the role of drawback (men’s suits, the Designer Remission Order, the CITT).  Origin certification issues.  Inventory management and the tariff shift rules for textiles and apparel.

Rules of Origin  The need for specialization: fashion, “fine animal hairs”, high-end knit cotton shirts.  Trade facilitation and technical assistance (advance rulings, TRQ/TPL administration).  Specific considerations in US-Chile, NAFTA and CAFTA.

Rules of Origin  Free trade zones and 27.4 of the SCM.  Duty drawback and CAFTA refund regime.  Safeguard Measures: transitional, can be threat based, MFN levels, competent authority, other constraints and compensation.

Rules of Origin  Customs cooperation: investigate claims even where no preference claimed.  Sanctions against goods exported and exporter.  Origin modification: “short supply” and de minimis

Rules of Origin  Outward processing – value for duty.  Country specific TPL = Costa Rica’s wool apparel and Nicaragua’s descending SME  Visible linings and thread rules.  Records, Appeals, Advance Rulings.

Rules of Origin  Tariff classification concordance.  Detailed “short supply” list.  Cumulation – Mexico and Canada and between producers.  Thank-you.