FILTERS
ORIGIN OF GOODS
30/01/2018
Origin of Goods
In general, the rules of origin may be divided into:
- rules relating to preferential origin and
- those relating to non-preferential origin,
and consequently, the goods acquire preferential or non-preferential origin.
Goods originating in certain countries have preferential origin, which enables them to benefit from more favourable customs treatment. Preferential origin of goods means that goods have been obtained in a country in accordance with a particular preferential regime. The rules on preferential origin, which goods must satisfy in order to obtain more favourable treatment, are laid down in:
1. Free Trade Agreements, or
2. Generalized System of Preferences - GSP.
1. The Free Trade Agreement respectively its Protocol on Origin defines that preferential origin shall be demonstrated by a movement certificate EUR. 1 or an invoice declaration. Both documents shall be certified by the customs administration, namely the Indirect Taxation Authorityin Bosnia and Herzegovina.
The Protocol on the Origin of the Free Trade Agreements that Bosnia and Herzegovina has with the European Union, the European Free Trade Association (EFTA) and the Central European Free Trade Agreement (CEFTA 2006) is the Regional Convention on pan-Euro-Mediterranean preferential rules of origin published in the “Official Gazette of BiH” - International Treaties No. 15/14.
The Convention should replace the existing origin protocols to all free trade agreements between the Contracting Parties to the Convention, and is a single legal instrument laying down rules of origin.
The aim of the Convention is to apply rules of origin enabling the cumulation of origin for the goods of the countries which have signed the Regional Convention, that is, to create a large free trade area based on pan-European rules of origin including diagonal cumulation covering the European Union, the EFTA States, the participants in the Barcelona Process and the countries and territories involved with the European Union's Stabilisation and Association Process. The system of diagonal cumulation of origin provides benefits to economic operators and countries involved, since it allows the manufacturer to include in his product materials from another country with which has concluded a free trade agreement and which is involved in the same system and to export product under preferential conditions as his own product to a third country with which also has concluded a free trade agreement and is included in the system.
The text of the Convention can be found here
With respect to the Free Trade Agreement with the Republic of Turkey, the Decision No. 1/2011 of the Joint Committee established by the Free Trade Agreement between Bosnia and Herzegovina and the Republic of Turkey on amendments to Protocol 1 to the Agreement concerning the definition of the concept of "originating products" and methods of administrative cooperation, published in the “Official Gazette of BiH” - International Treaties No. 3/11, is in force.
The text of the Decision can be found here
2. The Generalized System of Preferences (GSP) is the most well-known form of unilateral preferential arrangement whereby developed countries grant preferences to developing countries and least developed countries. The system was adopted at the UNCTAD Conference in 1968 with the aim of greater integration of developing countries into the international trading system. Developed countries, through the GSP, authorize zero tariff rates for imports from developing countries, notably for industrial products and a smaller number of agri-food products.
The rules of origin are a key component of all GSP schemes. In order to qualify for preferential treatment under the GSP scheme, products exported from the GSP beneficiary country must comply with the origin rules of the GSP scheme of the preference-giving country concerned. The rules of origin can be found in the Handbook on the website of the Chambers of Commerce of the preference-giving countries. Within the GSP, the origin shall be demonstrated by a certificate of origin FORM A, issued in Bosnia and Herzegovina by the Foreign Trade Chamber of Bosnia and Herzegovina, Public Documents Sector.
Today, Bosnia and Herzegovina benefits under the GSP scheme from the following countries: Australia, Eurasian Economic Union Member States, Japan, New Zealand, United States of America.
More information on the GSP Scheme and the aforementioned Handbooks can be found at: http://unctad.org/en/Pages/DITC/GSP/Generalized-System-of-Preferences.aspx except for the GSP Scheme of the Customs Union of the Republic of Belarus, Kazakhstan and the Russian Federation for which you can find more information here.
Non-preferential origin of goods determines their origin but does not give them more favourable customs treatment. Non-preferential origin is used for statistical purposes, for the application of quantitative restrictions, and for determining whether goods are subject to trade policy measures (anti-dumping, etc.). As non-preferential rules of origin are not harmonized, each state lays down its own rules for acquiring non-preferential origin. Non-preferential origin shall be demonstrated by a Certificate of Origin issued in Bosnia and Herzegovina by the Foreign Trade Chamber of Bosnia and Herzegovina, Public Documents Sector.
Decision on non-preferential origin of goods (“Official Gazette of BiH”, No. 37/19)