Transcript Slide 1

REPUBLİC OF TURKEY
MINISTRY OF CUSTOMS AND TRADE
Directorate General of
EU and External Relations
TURKEY
Rules of Origin
Muzaffer KÜÇÜK
EU Expert
RULES OF ORIGIN
IN GENERAL
ORIGIN = ECONOMIC NATIONALITY OF THE GOODS
-vegetable products grown and harvested in Turkey
- live animals born and raised in Turkey
- mineral products extracted from the soil or seabed in the Turkey
Originating in TURKEY
Why do we need the concept of origin?
-Calculation of customs duties while importing
the goods
- Implementation of
trade policy measures
(surveillance and safeguard measures, quotas,
anti-dumping duties etc.)
- Statistical data for External Trade
-Country of export is not always the country of
origin!
EUROPEAN UNION
COUNTRY OF ORIGIN
SWITZERLAND
COUNTRY OF EXPORT
TURKEY
-TURKISH LEGISLATION ON
THE RULES OF ORIGIN
PREFERENTIAL RULES
OF ORIGIN
NON-PREFERENTIAL
RULES OF ORIGIN
 surveillance and
safeguard measures,
quotas, anti-dumping
duties etc
 Reduction or exemption
from customs duties
 EUR.1-EUR-MED Movement
Certificate, Invoice
Declaration, EUR-MED Invoice
Declaration Form A and
Origin Declaration
 Certificate of Origin
 Protocol on Rules of Origin
Annex to FTA’s.
 Customs Law and
Regulation

Article 22 in the Customs Law
 Regulations related to
Protocols on Rules of Origin.
 Council of
Ministers’ Decisions for GSP and
Kosova
TURKEY-EU CUSTOMS UNION
ANKARA AGREEMENT
12 SEPTEMBER 1963
ULTIMATE OBJECTIVE: CUSTOMS UNION
• PREPARATORY PERIOD (1963-1973)
• TRANSITIONAL PERIOD (1973-1995)
(Additional Protocol – 13 November 1970)
• FINAL PERIOD (31 December 1995-…)
(Decision No. 1/95 of Turkey-EU Association Council – 6
March 1995)
TURKEY-EU CUSTOMS UNION
MAIN PROVISIONS OF TURKEY-EU CUSTOMS UNION
Trading of goods between EU and Turkey without any customs
duties and quotas
Common external tariffs on imports from third countries (Community
Common Customs Tariff)
Basic principle
Free Movement of Goods
TR-EU Customs Union covers;
industrial goods and processed agricultural goods
For agricultural goods;
Preferential trade regime based on rules of origin.
Decision No.1/98 of Turkey-EU Association Council.
For European Coal and Steel Community goods;
ECSC- Turkey Free Trade Agreement of 1996 has been in force.
TURKEY-EU CUSTOMS UNION
WHICH GOODS ARE CONSIDERED TO BE IN FREE CIRCULATION?
 Goods completely obtained or produced in the Community or in
Turkey.
 Goods coming from third countries if;
-the import formalities are completed,
- if customs duties are collected in Turkey or in Community,
-if the goods in question have not benefited from a total or partial
reimbursement of duties or charges
TURKEY-EU CUSTOMS UNION
CUSTOMS UNION +
The framework of customs union established in 1996 goes far beyond
the classical concept of a customs union.
•Alignment to common commercial
agreements of EU and GSP) (Article 16)
policy (preferential trade
• Alignment of Customs Provisions (Article 28)
• Approximation of Laws (in the area of intellectual property rights and
competition, public procurements, indirect and direct taxes)
EU-TURKEY PREFERENTIAL TRADE
Industrial products and
processed agricultural
products
Agricultural products
Coal and steel products
Decision No. 1/95 of
Association Council
Decision No. 1/98 of
Association Council
FTA of 1996
Free Movement
(not based on rules of
origin)
Based on preferential
rules of origin
Based on preferential
rules of origin
A.TR Movement Certificate
EUR.1 and EUR-MED
Movement Certificates
EUR.1 and EUR-MED
Movement Certificates
INTERNATIONAL ARRANGEMENTS ON
PREFERENTIAL RULES OF ORIGIN
Mutual Concessions
-
Free Trade Agreements
Preferential Trade Agreements
Decision No 1/98 on the preferential trade of
Agricultural Products with EU
Unilateral Concessions
- Generalised System of Preferences(GSP)
-Kosova
OUR FTA PARTNERS
 EFTA Countries (Iceland,
Norway, Switzerland &
Liechteinstein)
 Israel
 EU (ECSC and
agriculture)
 Macedonia
 Bosnia-Herzegovina
 Morocco
 Palestine
 Tunisia










Syria (suspended)
Egypt
Georgia
Albania
Montenegro
Serbia
Jordan
Chile
S. Korea
Mauritius
 Lebanon,
Malaysia(signed, not
entered into force yet)
 Moldova, Ghana
(initialed)
OUR PTAs
 IRAN (entered into
force as of 1st
January 2015)
 ECOTA (to be
entered into force)
 TPS-OIC(to be
entered into force)
 D-8(to be entered
into force)
 Bangladesh
(ongoing)
ONGOING FTA NEGOTIATIONS
Mexico
Singapore
Peru
Japan
Ukraine
Colombia
Ecuador
Faroe Islands
 Cameroon
 Congo D.R
 Seychelles
 Mercosur
 Gulf Cooperation
Council
TURKISH LEGISLATON ON PREFERENTIAL
RULES OF ORIGIN
THERE ARE 7 REGULATIONS
AND 2 COUNCIL OF
MINISTERS’ DECISION AND 1
COMMUNIQUE RELATED TO
PREFERENTIAL RULES OF
ORIGIN IN OUR LEGISLATION
TURKISH LEGISLATON ON PREFERENTIAL
RULES OF ORIGIN
1) REGULATION ABOUT BILATERAL
CUMULATION ON PREFERENTIAL
TRADE SYSTEM(GEORGIA and
PALESTINE)
2) REGULATION ON PAN-EURO-MED
PREFERENTIAL RULES OF ORIGIN(EU,
EFTA, EGYPT, MOROCCO, TUNISIA,
ISRAEL, SYRIA, JORDAN)
3) REGULATION ON THE WESTERN
BALKANS PREFERENTIAL RULES OF
ORIGIN (EU, MACEDONIA,
MONTENEGRO, SERBIA, ALBANIA,
BOSNIA-HERSEGOVINA)
TURKISH LEGISLATON ON PREFERENTIAL
RULES OF ORIGIN
4) REGULATION ON THE BILATERAL
CUMULATION WITH CHILE
5) REGULATION ON THE PREFERENTIAL
RULES OF ORIGIN WITHIN THE
CONTEXT OF TURKEY-S.KOREA FTA
6) REGULATION ON THE
PREFERENTIAL RULES OF ORIGIN
WITHIN THE CONTEXT OF TURKEYMAURITIUS FTA
TURKISH LEGISLATON ON PREFERENTIAL
RULES OF ORIGIN
7) THE COUNCIL OF MINISTERS’ DECISION ON GSP
RULES OF ORIGIN
8) COMMUNIQUE ON THE LIST OF BENEFICIARY
COUNTRIES TO WHICH GSP SCHEME WILL APPLY
9) REGULATION ON THE IMPLEMENTATION OF THE
BILATERAL CUMULATION UNDER GSP
10) THE COUNCIL OF MINISTERS DECISION ON THE
GOODS TO WHICH PREFERENTIAL TARIFF
MEASURES ADOPTED UNILATERALLY (Kosova)
11) REGULATION ON THE PREFERENTIAL RULES OF
ORIGIN WITHIN THE CONTEXT OF TURKEY-IRAN
PTA (TO BE ENTERED INTO FORCE SOON)
CUMULATION OF ORIGIN
-BILATERAL CUMULATION
-DIAGONAL CUMULATION
Bilateral Cumulation
SHIRT
EUR.1
S.KOREA
TURKEY
FABRIC
EUR-1
Diagonal Cumulation
PAN-EURO-MED(PEM) SYSTEM
Pan-Euro Countries
1. European Union
2. Turkey
3. EFTA Countries
And
Faroe Islands
Mediterranean Countries
1.
2.
3.
4.
5.
6.
7.
8.
9.
Egypt*
Syria*
Palestine
Jordan *
Morocco*
Lebanon
Tunisia*
Algeria
Israel*
PROOFS OF ORIGIN ON PEM SYSTEM
• EUR.1 Movement Certificate
• EUR-MED Movement Certificate
• Invoice Declaration
• EUR-MED Invoice Declaration
What is the difference between EUR.1 and
EUR-MED?
1. PAN-EURO SYSTEM;
 Same rules of origin for all parties. (NO drawback
rule)
 Existence of FTAs between all parties
2. PAN-EURO-MED SYSTEM;

Diffrent rules on bilateral trade. (Implementation of
drawback rule on bilateral trade)

Non-existence of FTAs between all the Parties.
Diagonal Cumulation
TURKEY
SWITZERLAND
EFTA
EGYPT
(Pan-Euro-Med Preferential Rules of Origin)
EGYPT
Fabric
EUR.MED
EUR.MED
Shirt
TURKEY
VARIABLE GEOMETRY
EUR.MED
Fabric
EU
EUR.MED
Shirt
MOROCCO
TURKEY
The shirt can not be exported to Syria
with a proof of origin under SyriaTurkey
SYRIA
Diagonal Cumulation
WESTERN BALKAN SYSTEM (SAP CUMULATION)
 European Union
 Turkey
 Macedonia
 Albania
 Bosnia-Herzegovina
 Serbia
 Montenegro
Diagonal Cumulation (Western Balkans)
TURKEY
MACEDONIA
ALBANIA
MACEDONIA
(Pan-Euro-Med Preferential Rules of Origin)
ALBANIA
Fabric
EUR.1
Shirt
EUR.1
TURKEY
REGIONAL CONVENTION ON PAN-EURO-MEDITERRANEAN
PREFERENTIAL RULES OF ORIGIN
PEM cumulation
- 16 parties:
EU, TR, Faroe Islands, EFTA
States, Mediterranean
Countries
Western Balkans cumulation
– TR, EU, Western Balkan
partners
More than 60 Free Trade Agreements (FTA)
between these partners
• Each containing a Protocol setting identical
rules of origin
• Modifying rules of origin requires changing all
the Protocols
REGIONAL CONVENTION ON PAN-EURO-MEDITERRANEAN
PREFERENTIAL RULES OF ORIGIN
The PEM Convention:
A single text
on RoO, which
replaces each Protocol
in each FTA
• diagonal cumulation of origin on a single legal
instrument. No more separate protocols on RoO.
• easier revision and update of RoO.
• entire Western Balkan region into in the panEuroMediterranean zone of diagonal cumulation.
• accession of neighbouring countries in the panEuroMediterraneancumulation zone.
• extended opportunities for cumulation
Preconditions to Benefit from Preferential
Regime
Being within the scope of the Agreement,
Being originating within the framework of rules
defined by the Agreement
Having a valid proof of origin showing
originating status of the good,
Being directly transported of the good
from the Contracting Party.
WHOLLY OBTAINED PRODUCTS
Products wholly obtained in Turkey:
- Mineral Products
extracted from their soil
or from their seabed
- Vegetable Products
harvested therein
- Live animals born
and raised therein
How is the originating status of the good
determined when using non- Turkish originating
materials ?
1. Using materials that have originating
status of Contracting Party in the production
of the good
2. Using materials that have originating
status of third country in the production of
the good
Contracting/Non-Contracting Parties?
Bilateral Cumulation: Turkey-Chile FTA
(only Turkey and Chile)
Diagonal Cumulation: Pan-Euro-Med
Preferential Rules of Origin (Ex. Turkey-EUEgypt)
Non-contracting Party: all other 3rd countries
excluded from the Cumulation
If only the materials originating in the contracting
parties are used in the production
Is working or processing made in Turkey
beyond insufficient working and processings?
Originating in Turkey Y
N
Is value added in Turkey the highest one
compared to the value of the materials
originating in each of the contracting parties?
originating in Turkey
Y
N
Originating in the country
materials of which have
the highest value in the
final product
Insufficient Workings or Processings
- preserving operations to ensure that the products remain in good
condition during transport and storage;
- breaking-up and assembly of packages;
- washing, cleaning; removal of dust, oxide, oil, paint or other
coverings;
- ironing or pressing of textiles;
- simple painting and polishing operations;
- sharpening, simple grinding or simple cutting;
- simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on
cards or boards and all other simple packaging operations;
- affixing or printing marks, labels, logos and other like
distinguishing signs on products or their packaging;
- simple mixing of products, whether or not of different kinds,
- slaughter of animals.
If the materials originating in a third country
used in the production
If the materials originating in a 3rd country satisfy
working or processings stipulated in Annex II to
Protocols on Rules of Origin of FTA’s? (sufficiently
worked or processed)
Originating in
Turkey
Y
N
The goods can not acquire originating status
ANNEX II (List Rules)
HS heading
Description of product
(1)
(2)
Chapter 2
Meat and edible meat offal
4407
Wood sawn or chipped lengthwise,
sliced or peeled, of a thickness
exceeding 6 mm, planed, sanded or
end-jointed
8411
TurbojTurbo-jets, turbo-propellers
and
other gas turbines etler,
Working or processing, carried out on non-originating materials,
which
confers originating status
(3)
or
(4)
Manufacture in which all the
materials of Chapters 1 and 2 used
are wholly obtained
Planing, sanding or end-jointing
Alternative rule
Manufacture:
- from materials of any heading,
except that of the product, and
- in which the value of all the
materials used does not exceed
40 % of the ex-works price of the
product
Manufacture in which the
value of
all the materials used does not
exceed 25 % of the ex-works
price
of the product
Ex-Works/Ex-Factory Price-Factory Gate
Price
Originating materials (proof of origin by
suppliers declaration or own
bookkeeping)
- Non originating materials (the customs
value at the time of importation)
- Wages (Labour costs)
- Profits
- Overheads (e.g. administrative, selling,
marketing expenses)
- Costs regarding the IPR’s
Ex-Works/Ex-Factory Price-Factory Gate
Price
Ex-works price does not include;
-Internal taxes (repaid when the endproduct is exported)
- Costs of transporting the end-product to
the customer
THANKS FOR YOUR ATTENTION
+90 312 449 28 24
[email protected]