World Bank Andean FTA Rules of Origin Video Conference: Textiles & Apparel June 16 th , 2005

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

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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

8. 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.

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