A Comparative Study of the Rules of Origin in the Textiles and Vehicles Sectors

The EU-WCO Rules of Origin Africa Programme has released a new publication about the rules of origin (RoO) for the textile and vehicle sectors, titled “A Comparative Study of the Rules of Origin in the Textiles and Vehicles Sectors.”

The report compares the drafting styles of Product-Specific Rules (PSRs) in eight free trade agreements (FTAs), namely the African Continental Free Trade Area (AfCFTA), the East African Community (EAC) Customs Union Protocol, the EAC-European Union Economic Partnership Agreement (EPA), the Southern Common Market (MERCOSUR), the Pan-Euro Mediterranean (PEM) Convention, the Regional Comprehensive Economic Partnership (RCEP), the Southern African Development Community (SADC) FTA, and the United States-Mexico-Canada Agreement (USMCA). It focuses on chapters 61-63 (garments and other made-up textile articles) and headings 8701-8705 (motorised vehicles). The study uses an innovative method to compare drafting styles and reveals a wide diversity of drafting styles, particularly for vehicles.

One important finding is that the drafting complexity increased due to technical updates in the HS classification. This supports the argument of systematically transposing PSRs to the latest HS version, with the eventual possibility of simplifying the rules where appropriate.

The takeaways include the necessity for negotiators to strike a balance between using business-friendly language and technically precise language. Additionally, the methodological approach introduces an innovative approach to the analytical toolbox for origin matters.

The report was produced by the EU-WCO Rules of Origin Africa Programme, with the contribution of the WCO Origin Sub-Directorate.

The EU-WCO RoO Africa Programme is a joint initiative between the European Union (EU) and the World Customs Organization created to support the implementation of the AfCFTA. The program offers targeted assistance to the AfCFTA Secretariat, regional economic communities, Member States and the private sector. It offers customised technical assistance, particularly through training, and includes diagnostic and needs assessments, consultations, guidelines, knowledge products and standard operating procedures.

The Programme’s primary goal is to facilitate and enhance trade within Africa, between Africa and Europe, and between Africa and the global community. This initiative is a concrete measure taken by the EU and the WCO, in partnership with key stakeholders, to assist African partners in implementing the AfCFTA.

This publication has been developed with the financial support of the EU under the EU-WCO Rules of Origin Africa Programme. Its content is the sole responsibility of the EU-WCO Rules of Origin Africa Programme and does not necessarily reflect the views of the European Union or the WCO.

For further information, please contact [email protected]

Source: WCO