What Is the Same Origin Policy?

Rules of origin, also known as "rules of origin." Refers to specific regulations formulated and implemented by a country in accordance with the principles established by national laws or international agreements to determine the country or region in which the goods are produced or manufactured. In order to implement preferential or differential treatment of tariffs, quantity restrictions or other trade-related measures, the customs must determine the country of origin of imported goods according to the criteria of the rules of origin and give corresponding customs treatment. The origin of the goods is aptly called the "economic nationality" of the goods, and the rules of origin play an important role in international trade.

Rules of origin

Right!

Also called "rules of origin." Refers to specific regulations formulated and implemented by a country in accordance with the principles established by national laws or international agreements to determine the country or region in which the goods are produced or manufactured. In order to implement preferential or differential treatment of tariffs, quantitative restrictions or other trade-related measures, customs must

The goods must be produced in the last country through a substantial substantive process so that the goods have their peculiar properties, and then the exporting country is considered to be the country of origin of the goods.

1. Whole production standard. That is, the products are produced and manufactured entirely in the beneficiary countries and do not contain imported raw materials and components of unknown origin. Products produced entirely in a country include: minerals mined in the country's territory, territorial waters, or its seafloor; plant products, animal products, and products thereof grown and harvested in the country; products obtained from domestic fishing and hunting; the Marine products captured by ships on the high seas, and products processed and processed on board by the seas in the country; residues and waste materials and waste items collected and produced in the country after collection and processing in the country; all domestic products produced in the country with the above items Products of.

2.

To build a fair, transparent, simplified, and consistent

The certificate of origin is used in international trade to prove the origin of the goods. It is the

(1) Divided by the flow of goods: imports

Most countries in the world give different treatments according to different sources of imported products. In practice

Article 5 of the Rules of Origin for the Export of Goods of the People s Republic of China states:

Rules of origin rules system

(I) Laws and regulations system

Japan's laws and regulations on rules of origin are composed of more than 40 laws, regulations and decrees related to customs, customs and trade management, as well as EPA / FTA agreements signed externally, mainly including the following:

1. Laws, regulations and decrees related to customs and customs duties: "Provisional Tariff Measures Law", "Tariff Rate Law", "Tariff Law" and its "Enforcement Order", "Implementation Rules" and "Basic Notice";

2. Decrees concerning trade management: "Decrees on Emergency Tariffs", "Decrees on Anti-dumping Duties", and various decrees issued when Japan implemented various trade remedies and trade retaliation measures.

3. Externally signed EPA / FTA agreements and the "Law on the Issuance of Certificates of Specific Origins in Accordance with Economic Cooperation Agreements" and their "Enforcement Orders" and "Implementation Rules".

(II) Government management system

1. The Ministry of Economy, Trade and Industry (hereinafter referred to as the Ministry of Economy, Trade and Industry) is the competent department for foreign trade in Japan. The Trade Management Division of the Trade and Economic Cooperation Bureau of the province has a Trade Management Division in charge of certification of origin. Due to Japan s increased efforts to sign EPA / FTA for foreign business, related businesses have greatly increased. On April 1, 2005, the Ministry of Economy, Trade and Industry set up a new certification office of origin under the Trade Management Division, which is responsible for the management of certification of origin. .

Pursuant to the provisions of Article 11 of the International Convention on Facilitation of Customs Clearance and the Law on Issuance of Certificates of Specific Origin under Economic Cooperation Agreements, the Japan Chamber of Commerce and Industry (that is, the Chamber of Commerce) has been authorized to issue certificates of origin. According to statistics, about 600,000 certificates of origin issued by the Japan Chamber of Commerce and Industry each year.

2. Japan's Ministry of Finance is in charge of customs and customs affairs. The Customs Division of the provincial customs bureau is responsible for the formulation of the system of origin, etc., and local customs specifically implement the determination of the origin of imported products. When Japan implements trade remedies and trade retaliation against certain countries, the customs system in charge of the province implements various measures in accordance with the rules of origin.

Application of rules of origin rules

(I) Preferential areas

It is mainly applied to the GSP implemented in developing countries and the preferential tariff concessions in the EPA / FTA agreement.

1. GSP. Japan has implemented the GSP since August 1971, and has implemented preferential tariff measures for developing countries. Japan implements the GSP scheme for 141 countries and 15 regions. The target is about 340 agricultural products and about 3,300 industrial products other than petroleum and leather products. Japan's country of origin system was first introduced when the GSP was implemented, and is mainly used to determine whether the product belongs to the beneficiary country's original product to determine whether preferential tariffs apply.

2. EPA / FTA. Since the entry into force of the Japan-Singapore Economic Cooperation Agreement (EPA / FTA) in November 2002, Japan has signed EPA / FTA agreements with nine countries and regions, of which agreements with Singapore, Mexico, Malaysia and Chile have entered into force. According to the contents of the agreement, Japan implemented tariff concessions on products originating from the target country, and formulated relevant methods and procedures for determining origin. Due to the differences in the negotiations and the concerns of the target countries, the rules of origin in the agreements are also different.

(2) Non-preferential areas:

Mainly used in anti-dumping and other trade remedy areas, trade retaliation measures, and WTO government procurement areas.

1. Trade remedy field. When Japan raises anti-dumping measures against other countries, the country of origin shall prevail, and relief measures such as additional taxes and quota restrictions shall be imposed on products from specific countries. For example, in 2002, when Japan imposed anti-dumping duties on polyester staple fibers originating in South Korea and Taiwan, China, the rules of origin were applied.

2. Trade retaliation measures. When implementing trade retaliation measures in accordance with the WTO agreement, it is necessary to retaliate against products originating in specific target countries in accordance with the rules of origin. For example, in August 2005, Japan imposed retaliatory tariffs on ball bearings originating in the United States.

3.WTO government procurement agreement. As a party to the WTO Government Procurement Agreement (GPA), Japan must comply with the rules of origin in Article 4 of the agreement, and the rules of origin adopted in the field of government procurement must not be different from those in the normal trade field.

Rules of Origin

(I) Basic principles

Japan did not formulate rules of origin on its own, based on the determination criteria set out in the Annex to the International Convention on Facilitation of Customs Procedures signed at Geneva on November 3, 1923, in Article 68 of its Basic Notice of Tariff Law The method of determining the place of origin is specified in paragraph 3, paragraph 5.

When determining the origin of a product, first confirm whether the product is a "complete output product". If the product has completed the entire production process in a country, the country is determined as the country of origin of the product according to the "complete output principle". If the production of the product involves more than two countries, the country that brought the material change to the product and gives the product new characteristics will be determined as the country of origin of the product according to the "substantial change principle". In addition, as a special case, for products that meet the "Complete Output Principle" and "Substantial Change Principle", but have undergone only slight processing of the product, according to the "Miniature Processing Standard", the final processing country of the product is not granted the original Origin certification.

(B) the principle of determining "substantial change"

For products involving more than two countries in the production process, Japan in principle applies the tariff change standards to determine its origin, but in some special cases, the ad valorem percentage standard and the processing procedure standard are also used as auxiliary standards.

1. In the inclusive system implemented in developing countries, more than 60% of the goods are subject to tariff changes. The remaining 40% of products apply auxiliary standards: application of processing process standards for textiles and processed foods, and ad valorem percentage standards for some mechanical and electrical products.

2. In the negotiation of the external EPA / FTA agreement, Japan, in principle, sought to adopt a tariff change standard, advocating that even if the ad valorem percentage standard is applied, it should be used as a supplementary standard, and opposed to the application of the ad valorem percentage standard to determine the origin of the product. Of the 9 EPA / FTAs that Japan has signed, only a handful of products are determined based on the ad valorem percentage principle, and most of them are "specially sensitive products" that the other country is more concerned about.

3. The rules of origin applied in non-preferential areas, such as trade remedies, trade retaliation, etc., shall in principle follow the GSP system of origin determination.

(3) Determination method of ad valorem percentage.

For imported products whose origin is determined by the ad valorem percentage criterion, Japan determines its total value based on the FOB price of the goods. The ad valorem percentage used as the criterion for determination is 40%, that is, if the country of origin of the product is determined to be a country, the value-added of the product after processing in that country accounts for the proportion of the total price of the product, which should not be less than 40%; or the product produced The value of non-original materials used in the total commodity price should not exceed 60%.