Discover and read the best of Twitter Threads about #rulesoforigin

Most recents (13)

Great example of why after #Brexit the UK won’t be able to just wave goods through and we will need #customs formalities AND checks, incl for NI to GB trade. Especially if we want to sign FTAs.

Short explainer on why customs matters
/1

bike-eu.com/laws-regulatio…
Some Chinese goods are currently subject to additional tariffs or anti-dumping measures in the US and the EU due to the local market practices being deemed unfair (e.g. selling goods below the market value etc).
/2
Let’s take one example from the article, EU’s anti-dumping measures on Chinese bikes. They are designed to protect the EU producers against unfair competition from China.
/3
Read 15 tweets
On the relationship between FTAs, #rulesoforigin and environment.
#Vietnam signed an FTA with the EU and will stop benefiting from EU’s generalised scheme of preferences (#GSP) for developing countries /1

e.vnexpress.net/news/business/…
When the EU-Vietnam FTA comes into force, new rules of origin will apply. Vietnam's #textile industry isn’t developed enough to meet EU’s origin rules. Local producers rely on imported raw materials. Making it difficult to fulfil value added rules /2
In order to be able to benefit from #customs tariff reductions under the EU deal, local enterprises will have to invest in production facilities in the country as well as in supporting industries /3
Read 6 tweets
We're starting day 2 of Roundtable on the Future of Rules of Origin and Utilization Rates by talking about convergence/divergence of product specific #rulesoforigin

@EuropeanUni @UNCTAD @GlobGovProgram @BernardHoekman
Looking at examples of rules of origin where the substance is the same despite different wording - such practices add to the complexity and limit transparency
When it comes to FTA utilisation rates it's extremely difficult to use high-level data to determine where preference has not been used because 1) traders weren't aware of the opportunity 2) goods didnt meet #rulesoforigin 3) something went wrong with certification
Read 6 tweets
C’est parti! 3 day Roundtable on the Future of Rules of Origin and Utilization Rates started in Florence. Organised by @EuropeanUni @UNCTAD @GlobGovProgram @BernardHoekman
Great opportunity for reps from IOs, governments, private sector and academia to discuss #rulesoforigin
Key topics raised so far: best practices on RoOs, the need for increased cross-sector cooperation and the extreme disconnect between pockets of knowledge on RoOs.
Utilisation rates will be one of the key issues here – how do we determine whether FTAs currently in place lead to economic benefits if we do not know what the utilisation rates are and are only estimating them
Read 5 tweets
From the AAC Brexit event to @SMMT summer reception to hear @LiamFox talk about the UK auto industry and UK auto supply chains
"You cant interfere with free and global trade without serious consequences" @LiamFox
Can't argue with that
And @BarryGardinerMP talking about #rulesoforigin and cumulation.
#customs has truly gone mainstream!
Read 3 tweets
#Ukraine and Republic of #Georgia changed #rulesoforigin in their trade agreement. They replaced the existing ones with rules identical to those used in Europe’s origin cumulation zone known as the Pan–Euro–Med (PEM) /1

ukrinform.net/rubric-economy…
PEM allows for cumulation of originating materials between countries within the zone. Meaning firms can treat materials from PEM members as their own when exporting to other PEM members (conditions apply). This change will allow the Ukraine/Georgia #FTA to work under PEM /2
Once ratified, "Ukrainian producers will be able to import raw materials and components from Georgia, recycle them in Ukraine and export them, for example, to Germany with Ukrainian certificates of origin with zero or preferential duty rates" /3
Read 3 tweets
An article about a country with 3 separate customs territories – China. #FTAs in place between the Mainland and Hong Kong, Mainland and Macao and Hong Kong and Macao /1

macaudailytimes.com.mo/tax-matters-th…
Basically: China is one country with separate customs territories which are joined by FTAs – in order to move products between these territories firms need to comply with #rulesoforigin
So the Chinese “one country, two systems” system is not without price. /2
It is as if post #Brexit NI and GB were two different #customs territories within one country, joined by an FTA and with rules of origin and other customs formalities between them- with an actual customs border. Just something to think about
Read 3 tweets
Since the CU option lost #indicativevotes by the smallest margin, a short one on customs unions and borders including the NI border /1
CUs don’t remove the need for customs formalities. They can facilitate and streamline but not necessarily. This is normal as in order to use preferential tariffs under an FTA or CU you normally need to jump through more hoops than when paying full rates. /2
You need to show you’re eligible for these “discounts”. Under CU you need to demonstrate that the goods have either been produced/manufactured in the CU or have been customs cleared (duty paid) /3
Read 15 tweets
Couple of points on the International Trade Committee’s meeting with Liam Fox this morning. On tariffs, FTAs and no deal. @CommonsIntTrade questions much better than the answers they got. /1
So Fox was asked a very valid question on the relationship between 0% tariffs and concessions during #FTA negotiations. No response. Interestingly he mentioned a range of gov unilateral mitigation and contingency measures ready for no deal and loss of FTAs. /2
Would be good to know what these are. We're assured that there is “a lot of activity” and “measures ready” with no indication what these are and as far as I’m aware very little consultation. Problem is- for them to be effective business would need time to adjust /3
Read 10 tweets
Good example of how #rulesoforigin can be used as a barrier to trade (they are in fact NTBs). EU-Japan #FTA. Switch to weight-based rule from value-based one for chocolate, biscuits & confectionery products means EU firms will find it hard to qualify /1
caobisco.eu/caobisco-choco…
“EU manufacturers, while sourcing the vast majority of sugar from the EU, are unable to prove the weight of non-originating sugar in the final product as sugar suppliers are often unwilling to provide a supplier declaration certifying EU origin.” /2
Practicalities of calculating/demonstrating origin often makes it difficult for companies to trade under preferential tariffs. The rule might not “look” more restrictive but in practice you cant prove origin /3
Read 4 tweets
Lords begins consideration of Commons changes to Lords amendments to EU Withdrawal Bill - minister Lord Callanan says customs union already repeatedly considered
Baroness Smith of Basildon "The Lords should not engage in ping pong lightly" - Lords performing constiutional role
"When Dutch Govt is advising its manufacturers not to buy components form UK because our future customs relationship with EU is unclear, we know there is a problem that needs to be addressed urgently," says Baroness Smith re Sky News #rulesoforigin story news.sky.com/story/european…
Read 17 tweets
Live on Sky News Tonight - new #BrexitForensics story as European Governments issue advice to their exporters not to use parts from Britain - Top car exec tells me “catastrophe” for UK auto
#rulesoforigin
Dutch Government official advice to its business community warns its manufacturers “if a large part of your product consists of parts from the UK” they may lose free trade terms for exports.

“After Brexit, parts made in UK no longer count towards this minimum production in EU”
The Government would argue that this is premature, but the likes of the Dutch are already advising their manufacturers to reduce dependence on UK:
“Trade with the UK will become more difficult after Brexit... consider looking for alternatives”
Read 13 tweets
1/ Articles like this explain a very niche and technical topic to a wider audience. Which is fantastic. But it may be bit misleading so in the spirit of clarification a couple of points. Happy to hear other views @instituteforgov instituteforgovernment.org.uk/explainers/rul…
2/ #rulesoforigin do not affect free movement of goods as when you have free movement of goods you don’t need rules of origin. At a time when most people are still trying to figure out what free movement means this might be an important distinction
3/ Preferential and non-preferential #rulesoforigin are so different summarising them both in one article can lead to confusion. The article jumps from one to the other without clarifying which point refers to which type
Read 10 tweets

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