CARICOM Rules of Origin

• Sean Richmond, Deputy Commissioner of Custom, Excise and Trade Administration, is the presenter for this information.
• Rules of Origin are laws, regulations, and administrative rulings applied by governments.
• They are used to determine the country of origin for goods, services, or investment.
• Rules of Origin are important because they significantly affect the cost and competitiveness of a product.
• They are also a key consideration in foreign investment decisions.
• Countries use them to administer tariff preferences, quotas, safeguard measures, and anti-dumping measures.
• Article 84(1) in the CSME sets the legal framework for CARICOM's Rules of Origin regime.

Direct Consignment Rule

• Products must be transported directly from the exporting contracting state to the importing contracting state to be considered directly consigned.
• This means they should not pass through the territory of any non-contracting state.
• Products can transit through one or more intermediate non-contracting states with or without trans-shipment or temporary storage if:
  • Transit entry is justified for geographical reasons or transport requirements.
  • The products have not entered into trade or consumption there and have not undergone any operation other than unloading, reloading, or operations required to keep them in good condition.
• The assumption is that the products have not undergone change or transformation during transit.

Rules Regarding Community Origin

• Rule 1 involves the usage of vessels, materials, energy, fuel, plant, machinery, and tools.
• Their utilization in the production of goods within the community is subject to specific conditions to meet origin requirements.
• Rule 2 says that Goods wholly produced include mineral and vegetable products.
• They also include live animals, products obtained by hunting or fishing, and marine products extracted from the ground or by fishing conducted within the Community.
• Rule 3 covers substantial transformation.
• This transformation relates to goods produced within the community.
• This can be either wholly or partially from materials imported from any port outside the community.
• Additionally, substantial transformation can be achieved:
  • Goods made from materials that have no determination of origin.
  • The process affects a substantial change by a change in tariff heading or satisfying the conditions outlined in 'THE LIST' in Schedule I.
• Rule 4 states that the unit of qualification relates to a consignment.
• Articles may be considered separately.
• Goods being imported unassembled or disassembled can be treated as one article if the importer requests.
• Rule 5 says that segregation of materials allows for an acceptable accounting system.
• This system records the different origin used in the production of goods by permitting an importer to account for segregated goods.
• Rule 6 clarifies that the treatment of repaired goods should not affect the origin status if such process within the community does not result in a change of the form or character of the goods.
• Rule 7 says that Member States may treat goods separately from their packing when looking at customs duties.
• Rule 8 covers documentary evidence.
• Evidence of origin and consignment must be a certificate of origin.
• The certificate of origin issued by the governmental authority of the exporting member state.
• Rule 9 addresses the verification of evidence of origin.
• The importing member state may require further evidence of origin.
• The importer can still take delivery of goods with a customs security deposit.
• Rule 10 addresses the application of a safeguard mechanism.
• The competent authority in a member state may initiate action to protect a specific industry.
• This safeguard is applied if there is a build-up of imports which cause, or threaten, serious injury.
• Rule 11 covers sanctions for breaking the rules.
• Member States must introduce legislation and impose penalties against persons who facilitate declarations seeking community tariff treatment in their state.