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ASEAN Rules of Origin: Lessons and Recommendations for Best Practice

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

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    Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2009-36.

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    Length: 45
    Date of creation: 2009
    Date of revision:
    Handle: RePEc:phd:dpaper:dp_2009-36
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    Keywords: ASEAN; rules of origin; free trade agreements (FTAs);

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    1. Anton 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," Post-Print halshs-00849586, HAL.
    2. Cadot, Olivier & Carrère, Céline & de Melo, Jaime & 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.
    3. Dorothea C. Lazaro & Erlinda M. Medalla, 2006. "Rules of Origin - Evolving Best Practices for RTAs/FTAs," Trade Working Papers 22006, East Asian Bureau of Economic Research.
    4. 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..
    5. Kala Krishna & Anne Krueger, 1995. "Implementing Free Trade Areas: Rules of Origin and Hidden Protection," NBER Working Papers 4983, National Bureau of Economic Research, Inc.
    6. 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.
    7. 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.
    8. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
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    Cited by:

    1. 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).
    2. Mari PANGESTU & Lili Yan ING, 2015. "ASEAN: Regional Integration and Reforms," Working Papers DP-2015-69, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. 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).
    4. 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.
    5. Rafaelita M. Aldaba, 2015. "How are Firms Responding to Philippine Free Trade Agreements?," Working Papers id:7145, eSocialSciences.
    6. 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.

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