WTO Hosts Forum to Exchange Views on Trade Challenges from Certificates of Origin

WTO members met with representatives from the public and private sector on 18 April to discuss the challenges faced by exporters in complying with requirements related to the certification of origin. The information session at WTO headquarters is part of an outreach effort with business, academics and other international bodies to gain a better understanding of problems or difficulties and identify concrete solutions.

Certificates of origin are required from exporters to obtain benefits under preferential trade arrangements. In addition, some WTO members require such certificates even in the absence of any trade preference for reasons such as enforcing anti-dumping measures or ensuring application of most favoured nation tariff treatment to imports from WTO members. Sometimes, non-preferential rules of origin are also linked to labelling obligations (i.e. country-of-origin marking) and the application of quotas.

According to WTO Agreements, WTO members should only require a certificate when they are "strictly indispensable". While such certificates may be necessary, several speakers noted they also generate cost and delays for businesses and may be a source of risk and uncertainty. The cost of securing such certificates can go up to several hundred dollars per certificate, speakers explained to WTO members.

The WTO's Trade Facilitation Agreement addresses some of these concerns through provisions related to transparency, prior processing and customs cooperation, but some participants acknowledged that there are several gaps and that there would be scope for further positive outcomes through the WTO's Committee on Rules of Origin.

Participants at the information session heard presentations from representatives of the WTO Secretariat, the Brussels-based World Customs Organization (WCO), the International Chambers of Commerce, the UN Conference on Trade and Development (UNCTAD), the International Trade Centre (ITC), and the professional services company KPMG, among others. The discussion focused on international legal instruments related to the certification of origin, private sector perspectives on certification requirements and some national practices in this area.

Michel Aniker, Director and Head of Trade and Customs with KPMG Switzerland, said non-preferential rules of origin in particular created "significant barriers" to trade, are difficult for businesses to understand, and are often misused both by traders and customs authorities. Greater alignment between preferential and non-preferential rules and a mutual recognition framework among customs authorities are two ways to overcome some of these difficulties.

Mette Azzam, Senior Technical Officer with the WCO, said a WCO survey showed that the vast majority of governments do not systematically require a non-preferential certificate of origin, although some members do. She questioned the need for such practices, arguing that in most cases customs authorities actually do not require a certificate to perform their duties.

Ursula Hermelink, Manager of the ITC's Non-Tariff Measures Programme, said that rules of origin are perceived by traders as among the most burdensome barriers they face, with the lack of clarity, consistency and predictability being the main issues. The problem is not only cost but extensive delays in securing certification. She invited WTO members to think about possible measures to make certification of origin requirements more transparent, cheaper and simpler.