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ASEAN Rules of Origin: Lessons and Recommendations for Best Practice

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  • Medalla, Erlinda M.
  • Balboa, Jenny D.

Abstract

Rules of origin (ROO) set the criteria in determining the nationality of a product and where a product was made. The importance of ROO has increased in the past years as more countries engage in free trade agreements (FTAs) and begun treating goods differently according to where the product was made, along with trade-specific preferences or restrictions to the imported good once its origin is determined. This study is done to cull the lessons from ASEAN’s experience in determining and implementing the rules of origin. It draws the important lessons and makes recommendations for best practice that would contribute to the cooperation and integration efforts in the region. The paper examines the various design and implementation practice in ROO regimes, focusing on RTAs where the ASEAN is involved. The paper presents findings from recent studies on the cost of ROO compliance and the FTA utilization rates. It concludes with recommendations on simplification of ROO and some reforms on administrative procedures, bringing in the development country dimension, and some general guidelines to follow to improve ROOs.

Suggested Citation

  • Medalla, Erlinda M. & Balboa, Jenny D., 2009. "ASEAN Rules of Origin: Lessons and Recommendations for Best Practice," Discussion Papers DP 2009-36, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2009-36
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    File URL: https://www.pids.gov.ph/publication/discussion-papers/asean-rules-of-origin-lessons-and-recommendations-for-best-practice
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    References listed on IDEAS

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    1. José Anson & Olivier Cadot & Antoni Estevadeordal & Jaime de Melo & Akiko Suwa‐Eisenmann & Bolormaa Tumurchudur, 2005. "Rules of Origin in North–South Preferential Trading Arrangements with an Application to NAFTA," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 501-517, August.
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    5. Cadot, Olivier & Carrere, Celine & De Melo, Jaime & Tumurchudur, Bolormaa, 2006. "Product-specific rules of origin in EU and US preferential trading arrangements: an assessment," World Trade Review, Cambridge University Press, vol. 5(2), pages 199-224, July.
    6. Erlinda M. Medalla & Josef T. Yap, 2008. "Policy Issues for the ASEAN Economic Community : the Rules of Origin," Trade Working Papers 22666, East Asian Bureau of Economic Research.
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    8. Richard E. Baldwin, 2008. "Managing The Noodle Bowl: The Fragility Of East Asian Regionalism," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 449-478.
    9. Céline Carrère & Jaime de Melo, 2015. "Are Different Rules of Origin Equally Costly? Estimates from NAFTA," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 12, pages 277-298, World Scientific Publishing Co. Pte. Ltd..
    10. K.N. Harilal & P.L. Beena, 2003. "The WTO agreement on rules of origin: Implications for South Asia," Centre for Development Studies, Trivendrum Working Papers 353, Centre for Development Studies, Trivendrum, India.
    11. Medalla, Erlinda M. & Lazaro, Dorothea C., 2006. "Rules of Origin: Evolving Best Practices for RTAs/FTAs," Discussion Papers DP 2006-01, Philippine Institute for Development Studies.
    12. de Melo, Jaime & Cadot, Olivier & Carrère, Céline & Tumurchudur, Bolormaa, 2005. "Product Specific Rules of Origin in EU and US Preferential Trading Agreements: An Assessment," CEPR Discussion Papers 4998, C.E.P.R. Discussion Papers.
    13. Erlinda M. Medalla, 2008. "Rules of Origin : Regimes in East Asia and Recommendations for Best Practice," Trade Working Papers 22665, East Asian Bureau of Economic Research.
    14. Erlinda M. Medalla & Josef T. Yap, 2008. "Policy Issues for the ASEAN Economic Community : the Rules of Origin," Trade Working Papers 22015, East Asian Bureau of Economic Research.
    15. Manchin, Miriam & Pelkmans-Balaoing, Annette O., 2007. "Rules of origin and the web of East Asian free trade agreements," Policy Research Working Paper Series 4273, The World Bank.
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    Cited by:

    1. Mari Pangestu & Lili Yan Ing, 2016. "ASEAN: Regional Integration and Reforms," Asian Economic Papers, MIT Press, vol. 15(2), pages 44-60, Summer.
    2. Li, Qiaomin & Scollay, Robert & Maani, Sholeh, 2016. "Effects on China and ASEAN of the ASEAN-China FTA: The FDI perspective," Journal of Asian Economics, Elsevier, vol. 44(C), pages 1-19.
    3. Rafaelita M. Aldaba, 2015. "How are Firms Responding to Philippine Free Trade Agreements?," Working Papers id:7145, eSocialSciences.
    4. Olivier Cadot & Lili Yan Ing, 2016. "How Restrictive Are ASEAN's Rules of Origin?," Asian Economic Papers, MIT Press, vol. 15(3), pages 115-134, Fall.
    5. Medalla, Erlinda M. & Rosellon, Maureen Ane D., 2012. "ASEAN+1 FTAs and the Global Supply Chain in East Asia: the Case of the Philippine Automotive and Electronics Sectors," Discussion Papers DP 2012-38, Philippine Institute for Development Studies.
    6. Kuwayama, Mikio & Rosales V., Osvaldo, 2012. "China and Latin America and the Caribbean: building a strategic economic and trade relationship," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2599 edited by Eclac.
    7. Medalla, Erlinda M., 2011. "Taking Stock of the ROOs in the ASEAN+1 FTAs: Toward Deepening East Asian Integration," Discussion Papers DP 2011-36, Philippine Institute for Development Studies.
    8. Olivier CADOT & Lili Yan ING, 2014. "How Restrictive Are ASEAN's RoO?," Working Papers DP-2014-18, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Lili Yan Ing & Shujiro Urata & Yoshifumi Fukunaga, . "How Do Exports and Imports Affect the Use of Free Trade Agreements? Firm-level Survey Evidence from Southeast Asia," Chapters,, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. Medalla, Erlinda M. & Rosellon, Maureen Ane D., 2012. "Rules of Origin in ASEAN+1 FTAs and the Value Chain in East Asia," Discussion Papers DP 2012-37, Philippine Institute for Development Studies.
    11. Rafaelita M. Aldaba & Erlinda M. Medalla & Josef T. Yap & Mureen Ane D. Rosellon & Fatima Lourdes E. del Prado & Melalyn C. Mantaring & Veredigna M. Ledda, . "Survey Report on the Use of Free Trade Agreements in the Philippines," Chapters,, Economic Research Institute for ASEAN and East Asia (ERIA).

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