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W820011994201994.04.151994.05.15 AGREEMENT ON RULES OF ORIGINANNEX, 1A, OF, ANNEX, 1, OF, MARRAKESH, AGREEMENT, ESTABLISHING, THE, WORLDTRADE, ORGANIZATIONAGREEMENT ON RULES OF ORIGINMembers,Noting that Ministers on 20 September 1986 agreed that the UruguayRound of Multilateral Trade Negotiations shall aim to bring aboutfurther liberalization and expansion of world trade, strengthen therole of GATT and increase the responsiveness of the GATT system to theevolving international economic environment;Desiring to further the objectives of GATT 1994;Recognizing that clear and predictable rules of origin and theirapplication facilitate the flow of international trade;Desiring to ensure that rules of origin themselves do not createunnecessary obstacles to trade;Desiring to ensure that rules of origin do not nullify or impair therights of Members under GATT 1994;Recognizing that it is desirable to provide transparency of laws,regulations, and practices regarding rules of origin;Desiring to ensure that rules of origin are prepared and applied inan impartial, transparent, predictable, consistent and neutral manner;Recognizing the availability of a consultation mechanism andprocedures for the speedy, effective and equitable resolution ofdisputes arising under this Agreement;Desiring to harmonize and clarify rules of origin;Hereby agree as follows:PART I DEFINITIONS AND COVERAGEArticle 1 Rules of Origin1. For the purposes of Parts I to IV of this Agreement, rules oforigin shall be defined as those laws, regulations and administrativedeterminations of general application applied by any Member to determinethe country of origin of goods provided such rules of origin are notrelated to contractual or autonomous trade regimes leading to thegranting of tariff preferences going beyond the application of paragraph1. of Article I of GATT 1994.2. Rules of origin referred to in paragraph 1 shall include all rulesof origin used in non-preferential commercial policy instruments, suchas in the application of: most-favoured-nation treatment under ArticlesI , II, III, XI and XIII of GATT 1994; anti-dumping and countervailingduties under Article VI of GATT 1994; safeguard measures under ArticleXIX of GATT 1994; origin marking requirements under Article IX of GATT1994; and any discriminatory quantitative restrictions or tariff quotas.They shall also include rules of origin used for government procurementand trade statistics. (Notes 1)Notes 1: It is understood that this provision is without prejudiceto those determinations made for purposes of defining domesticindustry or like products of domestic industry or similar termswherever they apply.PART II DISCIPLINES TO GOVERN THE APPLICATION OF RULES OF ORIGINArticle 2 Disciplines During the Transition PeriodUntil the work programme for the harmonization of rules of originset out in Part IV is completed, Members shall ensure that:(a) when they issue administrative determinations of generalapplication, the requirements to be fulfilled are clearly defined. Inparticular:(i) in cases where the criterion of change of tariff classificationis applied, such a rule of origin, and any exceptions to the rule, mustclearly specify the subheadings or headings within the tariffnomenclature that are addressed by the rule;(ii) in cases where the ad valorem percentage criterion is applied,the method for calculating this percentage shall also be indicated inthe rules of origin;(iii) in cases where the criterion of manufacturing or processingoperation is prescribed, the operation that confers origin on the goodconcerned shall be precisely specified;(b) notwithstanding the measure or instrument of commercial policy towhich they are linked, their rules of origin are not used as instrumentsto pursue trade objectives directly or indirectly;(c) rules of origin shall not themselves create restrictive,distorting, or disruptive effects on international trade. They shall notpose unduly strict requirements or require the fulfilment of a certaincondition not related to manufacturing or processing, as a prerequisitefor the determination of the country of origin. However, costs notdirectly related to manufacturing or processing may be included for thepurposes of the application of an ad valorem percentage criterionconsistent with subparagraph (a);(d) the rules of origin that they apply to imports and exports arenot more stringent than the rules of origin they apply to determinewhether or not a good is domestic and shall not discriminate betweenother Members, irrespective of the affiliation of the manufacturers ofthe good concerned (Notes 2);Notes 2: With respect to rul
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