WTO Members Advance Transparency and Trade Facilitation Work on Rules of
Origin
At a meeting of the Committee on Rules of
Origin (CRO) on 11-12 May, WTO members advanced work on transparency and notification
practices, discussed the future direction of work on preferential rules of origin
for least-developed countries (LDCs), and participated in an information session
on the links between trade facilitation and rules of origin. The meeting was chaired
by Ms Carol Tsang of Hong Kong, China.
Key Highlights
·
Members of the World Trade Organization Committee on Rules of Origin (CRO)
met on 11–12 May 2026.
·
Discussions focused on:
o Transparency and notification practices
o Trade facilitation links with rules of origin
o Preferential rules of origin for Least-Developed
Countries (LDCs)
Information Session on Trade Facilitation
·
Joint session held with the WTO Committee on Trade Facilitation.
·
Co-chaired by:
o Carol Tsang
o Edem Kossi
·
Session explored how trade facilitation reforms can simplify origin-related
procedures.
Main Themes Discussed
·
Digitization of origin procedures
·
Good practices for proofs of origin
·
Simplification and reform of rules of origin
·
Role of advance rulings under WTO rules
Key Statements
·
Ms. Tsang emphasized:
o Simplification and transparency are essential
for resilient global supply chains and trade opportunities.
·
Mr. Kossi highlighted:
o WTO Trade Facilitation Agreement can help
reduce trade costs and modernize origin administration.
Participants in the Session
Presentations were made by:
·
WTO Secretariat
·
Common Market for Eastern and Southern Africa Secretariat
·
World Customs Organization
·
A.P. Moller - Maersk
·
Representatives from:
o Canada
o Chile
o China
o Japan
o Viet Nam
Transparency and Notification Updates
·
Kyrgyz Republic and Nigeria submitted updated notifications on non-preferential
rules of origin.
·
Nigeria made its first-ever notification under Article 5 of the WTO
Agreement on Rules of Origin.
o 58 members apply non-preferential rules
of origin
o 61 do not apply such rules
o 21 members have not yet notified their status
Measures to Improve Transparency
Members discussed practices such as:
·
Notification templates
·
Training materials and guidelines
·
Dedicated databases and portals
·
Experience-sharing sessions
New Documentation Reform
·
Members approved proposal by:
o Australia
o Canada
o Japan
o United Kingdom
·
Aim:
o Reorganize WTO document symbols for easier
identification of preferential and non-preferential rules of origin notifications.
Focus on LDC Preferential Rules of Origin
·
Members discussed future work regarding preferential rules of origin for
LDCs.
·
Two major papers discussed:
o Submission by preference-granting members
o Communication from the LDC Group titled:
§ “Resuming Work on Rules of Origin after
MC14”
Best Practices Identified for LDCs
Areas covered included:
·
Ad valorem calculation methods
·
Proofs of origin
·
Cumulation rules
·
Procedural simplification for claiming preferences
Other Developments
·
United Kingdom presented updates to its Developing Countries Trading Scheme
effective from 1 January 2026:
o Expanded cumulation arrangements
o More flexible apparel rules of origin
·
Japan shared outreach activities through online portals and trader workshops.
·
Switzerland presented modernization of Specific Annex K under the Revised
Kyoto Convention.
Next Meetings
·
Next WTO Committee on Rules of Origin meetings scheduled for:
o 7–8 October 2026
o 4–5 May 2027
Background
·
Rules of origin determine the national source of products.
·
They are critical for:
o Import duties
o Anti-dumping measures
o Safeguards
o Tariff preferences
·
WTO Agreement on Rules of Origin aims to:
o Harmonize rules globally
o Ensure rules do not become unnecessary barriers
to trade.
[ABS News Service/14.05.2026]
An information session held on 12 May explored the intersection between
trade facilitation and rules of origin. The session was jointly opened by the Chair
of the CRO together with the Chair of the Committee on Trade Facilitation, Mr Edem
Kossi of Togo, underscoring the close links between the two committees' areas of
work.
The session provided members with an opportunity to exchange experiences
on initiatives aimed at facilitating trade and compliance with origin-related requirements.
The discussions covered four broad themes: the digitization of origin-related procedures,
good practices pertaining to proofs of origin, trends and reforms aimed at simplifying
rules of origin, and the role of advance rulings under the Agreement on Rules of
Origin.
In her opening remarks, Ms Tsang stated: "In an increasingly complex
trading environment, simplification is not just a technical exercise - it is a real
necessity. By reducing unnecessary complexity in rules of origin and promoting their
transparency, we can help unlock trade opportunities, support businesses, and strengthen
the resilience of global supply chains." The CRO, she added, has a role to
play in promoting this agenda and fostering experience sharing among WTO members.
Mr Kossi said: "By continuing to modernize and facilitate all
aspects of import and export processes, including rules of origin, we can further
reduce trade costs, improve efficiency, and ensure that the benefits of international
trade are more widely shared. In this respect, the implementation of the WTO Trade
Facilitation Agreement can provide new impetus for rules of origin reform and origin
administration."
Presentations were delivered by the WTO Secretariat, the COMESA (Common
Market for Eastern and Southern Africa) Secretariat, the World Customs Organization
(WCO), A.P. Moller - Maersk, and representatives of Canada, Chile, China, Japan
and Viet Nam.
Ms Tsang noted that bringing together members, international organizations
and the private sector helps ground the Committee's technical discussions in the
practical realities faced by customs authorities, traders and other economic operators.
Two members submitted updated notifications of their non-preferential
rules of origin: the Kyrgyz Republic and Nigeria. Nigeria's submission was its first-ever notification under Article
5 of the Agreement on Rules of Origin, while the Kyrgyz Republic notified amendments
to the non-preferential rules of origin applicable to goods imported into the customs
territory of the Eurasian Economic Union. Article 5 of the WTO Agreement on Rules
of Origin sets out the notification obligations for members regarding their non-preferential
rules of origin.
The WTO Secretariat reported that 58 members have notified that they
apply non-preferential rules of origin, 61 members do not apply such rules, and
21 members have yet to communicate this information. Nine members have now updated
their notifications using the voluntary "template" proposed by the Chair
of the CRO in 2024.
Members continued their work on improving transparency in rules of
origin. The Secretariat presented practices identified in other WTO bodies that
could help improve compliance with notification obligations, drawing on a structured report prepared by the Council for Trade in Goods. These practices included
creating training materials and guidelines, notification templates, dedicated databases
and online portals and conducting experience-sharing sessions. Members welcomed
continued discussion on how to improve the timeliness, quality and usability of
notifications.
Members also agreed to a proposal, co-sponsored by Australia, Canada, Japan and the United Kingdom,
to reorganize the document symbols used for notifications of preferential and non-preferential
rules of origin to make it easier for delegations to retrieve notifications and
distinguish between different types of rules of origin. Secretariat work on this
is expected to be completed later in 2026.
Members devoted substantial attention to charting a way forward for
the Committee's work on preferential rules of origin for LDCs. Two papers framed
the discussions: a submission from preference-granting members - Australia, Canada, the European
Union, Japan, Switzerland and the United Kingdom; and a communication from the LDC Group titled "Resuming Work on Rules of Origin after
MC14", aimed at resetting the ground for discussions.
The Group identified six areas of best practice, covering both the
core disciplines of preferential rules of origin (such as how the ad valorem percentage
is calculated) and the procedural requirements that traders must meet to claim preferences
(such as proof of origin and cumulation).
Members welcomed both papers as constructive contributions and signalled
willingness to continue engagement bilaterally and in the Committee.
The United Kingdom presented updates to its Developing Countries Trading
Scheme, a preferential trading scheme that
cuts tariffs and simplifies trading rules for 65 developing countries, including
LDCs. The updates, which entered into force on 1 January 2026, are reflected in
its revised notification to the Committee. The updates include new and expanded regional cumulation
arrangements in Africa and Asia, as well as more flexible rules of origin for apparel
products.
Japan presented its outreach and awareness-raising activities for traders
on rules of origin, sharing experience from its dedicated online portal, workshops
and consultation services. The WCO Secretariat reported on the activities of its Technical Committee on Rules of Origin. Switzerland
provided an overview of the modernized Specific Annex K of the Revised Kyoto Convention, the international agreement administered by the WCO that sets common
standards for simplifying and harmonizing customs procedures. The amended Annex,
adopted in April 2026, sets out international standards on both non-preferential
and preferential rules of origin, including provisions on cumulation, proof of origin
and self-certification.
The next formal meetings of the Committee are scheduled for 7-8 October
2026 and 4-5 May 2027.
Rules of origin are the criteria
needed to determine the national source of a product. Rules of origin are important
in the application of import duties as well as trade policy instruments such as
anti-dumping and countervailing duties, origin marking, and safeguard measures.
There is a wide variation in
the practice of governments with regard to rules of origin. The WTO's Agreement
on Rules of Origin aims at long-term harmonization of rules of origin, other than
rules of origin relating to the granting of tariff preferences, and at ensuring
that such rules do not themselves create unnecessary obstacles to trade. It also
provides for transitional disciplines. An annex to the Agreement sets out a "common
declaration" with respect to the operation of rules of origin on goods which
qualify for preferential treatment.