Transcript Chapter 62 - Hrvatski izvoznici

Revision of the
PEM Convention
on Rules of Origin
Textiles
TAXUD/1645234/14
20th PEM Working Group
Brussels, 22 May 2014
Guillaume DOREY
DG Taxation and Customs Union
TAXUD B3 – Trade facilitation, Rules of Origin and
International coordination Europe and neighbouring
countries
Textile – origin provisions
1. Textile in rules of origin – State of play
2. Position of Contracting Parties
3. Other ways of relaxations
1. Textile in rules of origin –
State of play
• List rules in the current PEM
• Tolerances
• Cumulation (special provisions for certain areas)
1. State of play
List rules – current PEM rules
• Based on 'double-transformation'  two significant
processes of production undergone in PEM Members
(provide higher value added)
• Complementary nature and integrated production chain
across pan-Euro-Med area
• Double transformation generated a number of benefits for
PEM area due to cumulation among PEM partners
• Estimates: about 5 mio textiles and clothing workers
employed throughout the area
1. State of play
List rules – current PEM rules
Clothing (examples)
Textiles (examples)
- extrusion of man-made fibers
accompanies by spinning for
synthetic yarns, or
-
weaving accompanied by
making–up (including cutting),
or
- spinning of natural or man-made
fibers accompanies by weaving, or
-
making–up preceded by printing
accompanied by at least of two
preparatory or finishing
operations (such as scouring, bleaching,
-
a substantial printing operation
accompanies with two
preparatory or finishing
operations
(such as scouring, bleaching, mercerising, heat
setting, raising, calendaring, shrink resistance
processing, permament finishing, decatising,
impregnating, mending and burling),
conditioned to a value-added criteria
for the incorporated non PEM
input – 47.5%
mercerising, heat setting, raising, calendaring,
shrink resistance processing, permament
finishing, decatising, impregnating, mending
and burling),
conditioned to a value-added
criteria for the incorporated non
PEM input – 47.5% (e.g. grey
fabrics)
1. State of play
Tolerances – current PEM rules
• Specific tolerances expressed in Introductory
notes:
• Note 4 (definitions)
• Note 5 (tolerance of 10% in weight for basic textile
materials + definition of basic textile materials)
• Note 6 (tolerance for textile materials of 8 %
EXW price providing a CTH with the exception of linings and
interlinings + tolerance for non-textile materials)
1. State of play
Cumulation – current PEM rules
• Cumulation for textile: full cumulation
Areas of full cumulation:
•
•
•
•
•
EEA (European Economic Area – EU, IS, LI, NO)
MA – TN – EU
MA – TN – TR
TN – EFTA (CH, IS, LI, NO)
DZ – EU
1. State of play
Example
Full cumulation
EEA
Pakistan
Iceland
HS 62 05
Supplier's declaration
for non-originating fabrics
yarn
weaving
List rule for shirts:
“Manufacture from yarn”
List rule for fabrics:
“Manufacture from fibres”
EUR.1 or
Invoice declaration
PO = EEA (EU)
Full cumulation
Takes into account the different
working stages
1- weaving from yarns
2- making
Norway
New challenges in textile and clothing sector
• New business and industrial reality in the sector
• Increasingly complex supply chains/diversity of production
processes
• Changing production techniques and production patterns (e.g.
finishing sector with innovative technologies )
• Limited supply of originating fibres/yarns in terms of needed
types, quantities, qualities
• Fierce competition from many Asian countries
2. Positions of PEM partners
• To keep the current rules (with relaxations or not)
• Double transformation as a principle but with options
• Single transformation (with or without conditions)
2. Positions
List rules – current PEM rules
clothing
textiles
- extrusion of man-made fibers
accompanies by spinning for
synthetic yarns, or
-
weaving accompanied by
making–up (including cutting),
or
- spinning of natural or man-made
fibers accompanies by weaving, or
-
making–up preceded by printing
accompanied by at least of two
preparatory or finishing
operations (such as scouring, bleaching,
-
a substantial printing operation
accompanies with two
preparatory or finishing
operations
(such as scouring, bleaching, mercerising, heat
setting, raising, calendaring, shrink resistance
processing, permament finishing, decatising,
impregnating, mending and burling),
conditioned to a value-added criteria
for the incorporated non PEM
input – 47.5% [or without now]
mercerising, heat setting, raising, calendaring,
shrink resistance processing, permament
finishing, decatising, impregnating, mending
and burling),
conditioned to a value-added
criteria for the incorporated non
PEM input – 47.5% (e.g. grey
fabrics)
2. Positions
List rules – Relaxations by certain partners
Textile (examples merging different
positions)
- New wording with key working
processes (options) for both yarn
or fabric:
- Extrusion + spinning/weaving
- Extrusion + twisting/weaving
- Twisting or/combined with
-
gimping/weaving
Yarn dyeing + weaving
Weaving + one specific operation
(printing, dyeing, coating…)
Printing (as standalone operation +
value added criteria)
- Dyeing + 2 finishing operations) +
value added criteria
- Dyeing (as standalone operation)
-
Clothing (examples merging
different positions)
New wording with key working
processes for clothing
- weaving accompanied by
making–up (including
cutting)
- making–up preceded by
printing (as standalone
operation + value added
criteria)
- Dyeing + making-up
- Specific rules for some
products (ex: denim)
2. Positions
List rules – Relaxations by certain partners
clothing
textiles
- Single transformation based on:
- CTH
- Change from any heading
-
Single transformation based on:
- CTH
- Change from any heading
- 30 % minimum of
originating added-value
2. Positions
Analysis chapter by chapter
• Chapters 50 to 53
• Chapters 54 and 55
• Chapters 56, 57, 58, 59
• Chapters 60 and 61
• Chapter 62
Example:
Chapters 50, 51, 52, 53 (Silk, Wool, Cotton, Other vegetable textile)
Fabrics
PEM
Change in wording
+ options
+ dyeing
CTH / Change from
any heading
2. Positions
Chapters 50 to 53
Chapters 50, 51, 52, 53 (Silk, Wool, Cotton, Other vegetable textile)
Chapter rule
+ Fibres
PEM (CTH)
Change from any
heading
Yarns
PEM
Wording change
+ options
CTH / Change from
any heading
Fabrics
PEM
Wording change
+ options
CTH / Change from
any heading
+ dyeing
+ ex 5003 (silk waste) with special rule needed?
2. Positions
Chapters 54 and 55
Chapters 54 and 55 (man-made, synthetics textile)
Fibres
PEM
CTH
Change from any
heading
Yarns
PEM
Wording change
+ options
CTH / Change from
any heading
Fabrics
PEM
Wording change
+ options
CTH / Change from
any heading
(chapter 55 only)
+ dyeing
Chapter 56
2. Positions
Chapter 56 Wadding, felt and non-wovens (ouates, feutres et nontissés) + cordage and cables
Chapter rule
5601
5602
PEM
PEM
5603
CTH
Change from any
heading
Wording change
+ options
CTH / Change from any
heading
Wording change
+ options
CTH / Change from any
heading
Specific rules for
non-woven
products
+ by needle bunch
5604
PEM
Wording change
+ options
5605
PEM
Wording change
+ options
5606
PEM
Wording change
+ options
CTH / Change from any
heading
2. Positions
Chapter 57
Chapter 57 (carpets and textile floor coverings)
Of needleloom
felt
Of other felt
other
PEM
PEM
PEM
Wording change
+ options
CTH / Change from
any heading
2. Positions
Chapter 58
Chapter 58 (special fabrics – woven, tufted textile, tapestries…)
Chapter rule
PEM
Wording change
+ options
CTH / Change from
any heading
+ dyeing
5805
(tapestries)
5810
(embroidery)
PEM (CTH)
PEM
Wording change
Change from any
heading
CTH / Change from
any heading
Chapter 59
2. Positions
Chapter 59 (textile fabrics – impregnated, coated, or laminated +
textile articles for industrial use)
5901
PEM
Wording change
+ options
CTH / Change from
any heading
5902
PEM
Wording change
CTH / Change from
any heading
5903
PEM
Wording change
+ options
CTH / Change from
any heading
+ dyeing
5904
PEM
Wording change
CTH / Change from
any heading
5905
PEM
Wording change
+ options
CTH / Change from
any heading
+ dyeing
2. Positions
Chapter 59
Chapter 59 (textile fabrics – impregnated, coated, or laminated +
textile articles for industrial use)
5906
PEM
Wording change
+ options
CTH / Change from any
heading
5907
PEM
Wording change
+ options
CTH / Change from any
heading
+ dyeing
5908
PEM (CTH)
Change from any
heading
5909-5911
PEM
CTH / Change from any
heading
Wording change
+ options
2. Positions
Chapters 60 and 61
Chapters 60 and 61 (knitted or crocheted fabrics and clothing)
Chapter rule 60
PEM
Wording change
+ options
CTH / Change from
any heading
Chapter rule 61
PEM
Wording
change
CTH (or single
transformation) or
30% of originating
added-value
+ dyeing
with
addedvalue
Proposition of chaging the wording of « other » by « other (fullyfinished knitting or knitted to shape) »
2. Positions
Chapter 62
Chapter 62 (Articles of apparel and clothing accessories not knitted
or crocheted)
Chapter rule
PEM
Wording change
+ options
+ dyeing
Ex
Ex
Ex
Ex
Ex
Ex
Ex
Ex
Ex
Ex
Ex
Ex
Ex
6202
6204
6206
6209
6211
6201
6202
6203
6204
6205
6206
6209
6211
PEM
Specific
rule
for
denim
Wording change
+ options
(based on
unembroidered
fabric)
Manufacture from yarn or
Making-up followed by a
stonewashed operation provided
that the value of all the
materials used does not exceed
40% of the EXW price of the
product
CTH (single
transformation) or 30% of
originating added-value
CTH (single
transformation[+dyeing])
or 30% of originating
added-value
Manufacture from unbleached
fabrics or
Making-up followed by a
stonewashed operation provided
that the value of all the materials
used does not exceed 40% of the
EXW price of the product
2. Positions
Chapter 62
Chapter 62 (Articles of apparel and clothing accessories not knitted
or crocheted)
Ex 6210
Ex 6216
PEM
Wording change
+ options
CTH (single
transformation[+dyeing])
or 30% of originating
added-value
6213
6214
PEM
Wording change
+ options
(printing + based
on unembroidered
fabric)
CTH (single
transformation[+dyeing])
or 30% of originating
added-value
+dyeing
6217
PEM
Change in wording CTH (single
transformation[+dyeing])
or 30% of originating
added-value
2. Positions
Chapter 62
Position 1
Current PEM
ex Chapter 62 Articles of
apparel and
clothing
accessories, not
knitted or
crocheted;
except for:
Status quo
Manufacture PEM Rule
from yarn
to be kept
Position 2
Position 3
Double transformation
with options
Weaving combined
with making-up
or
Making-up preceded by
Printing (as standalone
operation)
or
Making-up preceded by
Printing (as standalone
operation) or by
Dyeing (as standalone
operation)
Single transformation
(with options or not)
Manufacture from
fabric (+ dyeing)
Or
Manufacture from
materials of any
heading, except that of
the product
Or
Manufacture in which
the value of all the
materials used does
not exceed 70% of the
ex-works price of the
product
Chapter 63
2. Positions
Chapter 63 (other made-up textile articles)
Chapter rule PEM
6301 to
6304
PEM
30% of originating addedvalue
Wording change
CTH or 30% of originating
added-value
Manufacture from
unembroidered
fabric
6305
PEM
Wording change
CTH or 30% of originating
added-value
6306
PEM
Wording change
+ option for non
woven process
CTH or 30% of originating
added-value
6307
PEM
CTH or 30% of originating
added-value
6308
PEM
CTH or 30% of originating
added-value
3. Other Ways of Relaxation
• Modernization of rules for textile may go through
different approaches:
• List rules
• Tolerance
• Cumulation
3. Relaxations
Tolerance
(general provisions and Introductory notes)
(see presentation on open questions)
• Article 5(1) – General tolerance
• Introductory notes (Notes [4], [5] and [6])
• Article 13 – provision on Duty Drawback
• Article 14 – Principle of territoriality
3. Relaxations
Tolerance
Article 5(1) – General tolerance
• State of play
[15%] of the ex-works price → all other products except
Ch. 50-63 → specific tolerances
(Introductory notes 5 and 6)
• Discussion
tolerances to be increased to the same extent and/or
remove exclusion of textiles in general ex-works price
tolerance
3. Relaxations
Tolerance
Introductory notes
(see document TAXUD/1645189/14)
Note [5] (definitions + printing and printing as standalone
operation)
Note [6.1] (tolerance of 10% in weight for basic textile
materials + definition of basic textile materials)
Note [7.1] (tolerance for textile materials of 8 %
EXW price providing a CTH with the exception of linings and
interlinings + tolerance for non-textile materials)
3. Relaxations
Tolerance
Article 13 – provision on Duty Drawback
• See working document TAXUD/1261847/14
• Discussion
CPs are invited to express their views on the principle and the
potential impact
3. Relaxations
Tolerance
Article 14 – Principle of territoriality
• Provision
Working or processing outside the exporting CP can be
disregarded' if added value ≤ [10%] of the ex-works price
of the end-product
Not allowed for products of Ch. 50-63
• Discussion
CPs are invited to express their views on the principle and the
potential impact
3. Relaxations
Cumulation
Full cumulation could be considered by partners:
• Step-by-step approach?
• Bilateral approach?
• Other?
• General provision (to be included in Article 3)?
• Combined with other relaxations?
Conclusion
Revision exercise should strike the right balance
between:
List rules
Rules
of
origin
Cumulation
Tolerance
• Unit B3 – PANEUROMED – Origin of goods
• European Commission
DG Taxation and Customs Union
• [email protected]
•
http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/preferential/
index_en.htm