Philippines to benefit from new EU rules of origin

The Philippines is one of the developing countries to beneift from the new rules of origin (ROO) under the European Generalized System of Preferences (GSP) that would take in January 2011.
Certificates of origins are international trade documents that attest that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a country of origin.
Every country considers the origin of imported goods when determining what duty will be assessed on the goods or, in some cases, whether the goods may be legally imported at all.

The ROO in the fisheries sector have been simplified and relaxed. It eliminated the current crew requirement for vessels conditions.

The European Union (EU) likewise relaxed several conditions particularly involving textiles and agricultural products which could benefit especially the poor countries.

For textiles, least developed countries will need just a single transformation instead of the previous double transformation.

An important effort of simplification has also taken place in agricultural goods. For instance, limitations on the use of sugar have been reduced, permitting up to 40 percent in weight of non-originating sugar instead of the previous 30 percent in value.

However, some new limitations have been introduced in very concrete cases like the use of dairy products.

“This reform will help developing countries to make the most of the trade preferences so that they do not lose out because of unnecessary red tape,” said Karel de Gucht, European Commissioner for Trade.

“We expect the new rules to give a big boost to the economies of the world’s poorest countries,” added de Gucht. 

Under EU’s proposed new set of rules, cumulation is possible within the already existing regional groups like ASEAN and South Asian Association for Regional Cooperation (SAARC) as well as the newly added Southern Common.