Origin Management Rules of Origin in Free Trade Agreements

Origin Management describes a holistic approach that allows internationally operating companies to benefit from reduced import duty rates within Free Trade Agreements (FTAs). Through the creation of a single, auditable, and global platform, companies are

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Anne van de Heetkamp

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Ruud Tusveld

Origin Management Rules of Origin in Free Trade Agreements

Anne van de Heetkamp Fisher Avenue 3745 West Sacramento CA 95691 California USA [email protected]

Ruud Tusveld PwC Customs & International Trade Fascionato Boulverd 350 3065 WB Rotterdam Netherlands [email protected]

ISBN 978-3-642-19807-6 e-ISBN 978-3-642-19808-3 DOI 10.1007/978-3-642-19808-3 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2011933220 # Springer-Verlag Berlin Heidelberg, 2011 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: eStudio Calamar S.L. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Preface

For centuries, the levy of import duties has been a common part of economics; it protects home markets and is an easy way for the authorities to generate income. As long as tariffs have existed, international trade has been hampered by them. In efforts to promote international trade and to gain competitive advantages, different trading partners have agreed to ease up and reduce or even abolish duty rates. The key condition to benefit from these duty rate reductions is that the goods for which the lower rates are applied upon importation, are “of origin,” i.e. the goods need to meet certain originating requirements in order to claim preferential treatment. The main reason for the condition is that the trading partners do not want parties that are not part of the agreement to benefit from the agreement. Therefore, in order to benefit from the lower duty rate opportunities, companies have to manage their origin issues, hence: Origin Management. Origin Management is the holistic approach toward the creation of a single, auditable, and global platform that enables companies and governments to successfully claim preferential origin, sustain, review, and audit preferential claims. Origin Management advocates an approach that involves sharing and distributing information and resources throughout the company and the supply chain, resulting in competitive advantages, synergies, and a central point of wisdom for all originassociated issues. In order to understand the importance, environment, and impact of