Non-Manipulation Certificate
Rules of origin
Rules of origin are a fundamental part of trade agreements in all nations around the world. These rules establish the conditions that a product must meet to be considered originating from one of the countries participating in a trade agreement. In other words, they determine the “economic nationality” of a product.
Those rules are in place to prevent products from third countries and non-signatories of trade agreements from enjoying the same tariff advantages as those who have joined the agreement. Therefore, only products manufactured or transformed within the area covered by the trade agreement can benefit from reduced tariffs or even the elimination of customs duties.
Rules of origin can vary from agreement to agreement and are complex. The factors to consider include:
- Product wholly obtained in the concerned country.
- Value-added rule: the value of all non-originating materials from the country or group of countries participating in the agreement must not exceed a certain percentage of the ex-factory value of the product.
- Change in tariff classification: the product must undergo transformations or manufacturing processes that change its customs classification.
- Specific operations: for example, in textiles, the use of fibres and yarns with the correct origin is necessary to benefit from preferential treatment (Rules of the list).
They are essential to ensure that trade agreements effectively promote trade between the signatory countries, without allowing goods to simply pass-through intermediary countries to obtain tariff benefits.
Customs authorities play a crucial role in verifying compliance with these rules.
Direct Transport
Companies wishing to benefit from the advantages provided by trade agreements must ensure that they comply with the specific rules of origin of the agreement in question.
There is a common provision in most origin protocols that guarantees the principle of territoriality, which pertains to the direct transport of products from the territory of the producing country to the territory of the destination country. This provision ensures the integrity of the products.
When, for purely transportation reasons, transhipment or temporary storage operations in other countries are necessary, the goods must remain under the supervision of the customs authorities of the transit or storage country. Such goods cannot undergo any other operations except unloading, reloading, and operations intended to ensure their proper preservation. To demonstrate the clause of direct transport, the issuance of a certificate of non-manipulation by the customs authorities is required, attesting that the products have not undergone transformations that would alter their origin.
