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Rules of origin
2. Non-preferential rules of origin 3. Preferential rules of origin
Responsible Authority: Ministry of Economy.
There are two kinds of rules of origin at an international level: non- preferential rules of origin and preferential rules of origin.
The first ones include all the norms utilized in non-preferential instruments of trade policies, such as applying the most favored nation treatment, antidumping rights and countervailing rights, safeguard measures, or even for government procurement and the settling of commercial statistics.
On the other hand, preferential rules of origin have the purpose of determining the country of origin of a good that is eligible for a preferential tariff treatment previously negotiated between one or more countries through an agreement or Free Trade Zone.
Rule of origin: Is the general or specific criteria agreed under a free trade agreement to determine which good is to be deemed non originating or when can it qualify as originating good.
Originating good: Means that it meets all the Rules of Origin provided for in the relevant chapter of a free trade agreement.
Non-originating goods: Goods that do not qualify as originating pursuant to the corresponding rules.
In Mexico, the Foreign Trade Law (FTL) is the one that governs "Rules of Origin".
Pursuant to article 9 of this Law, the origin of goods can be determined for tariff preference matters, marking of originating countries, application of countervailing duties, quotas and other measures established to that end. The origin of the product can be domestic, if one single country is considered, or regional if more than one country participates. The Ministry of Economy is the authority in charge of the creation of the rules, after considering the international treaties and agreements in effect to which Mexico is a party.
The basic criteria for making a rule of origin according to Article 10 of the aforementioned law are: tariff classification change, domestic and regional content, and manufacturing, production, making or preparation, specifying what kind of productive processes is granting the origin to the good without prejudice of other criteria that may be established by the Ministry of Economy.
2. Non-preferential Rules of Origin
Non-Preferential Rules of Origin applied by Mexico are based on the international treaties it has entered into. However, in the non-preferential sphere, the Resolutions published in the Federal Official Gazette (30 August 1994; 11 November 1996; 12 October 1998; 30 July 1999; 30 June 2000; 1 and 23 March and 29 June 2001; 6 September 2002; 30 May 2003 and 14 July 2004) provide for the standards to determine the country of origin of imported goods and the provisions for certification regarding countervailing duties.
Article 66 of the Foreign Trade Law exempts the importers of similar or identical goods of the payment of a temporary or final duty, provided that they can prove that the country of origin is other than that of a country exporting under unfair international trade practices; in this case the importer has the right to request the zero countervailing duty (Certificate of country of origin).
This agreement applies to the final importation of goods classified as footwear, textiles or garments and sets the Country of Origin Rules and the Appendix of Specific Rules applied to the referred goods and others.
The beneficiaries are individuals or entities importing goods that are "identical (those that are the same in all aspects as the goods subject to countervailing duties) or alike goods (which may not be the same in all aspects but have similar features and composition, allowing them to serve the same purpose and to be commercially interchangeable with the goods they are compared against)" to such for which a countervailing duty has to be paid.
Refer to the Agreement for established Norms to determine the country of origin of imported merchandise and accreditation dispositions regarding countervailing duties, in: http://www.economia.gob.mx/?P=2789
3. Preferential Rules of Origin
Preferential Rules of Origin applied by Mexico are based on the international treaties it has entered to.
Mexico has executed several free trade agreements in the light of article XXIV of the GATT-WTO, which entail broad access to markets allowing importers and exporters to diversify their foreign trade transactions.
Such agreements are listed below together with their date of issuance in the Federal Official Gazette and the Chapter containing ''Rules of Origin''.
Refer to Treaties signed by Mexico in: http://www.economia.gob.mx/?P=2113#
Responsible authority: Ministry of Economy.
The Certificate of Origin is the documentary evidence stating that a good is originating from a specific country or region, that is, it proves that the goods exported there under have been extracted, harvested or manufactured in a country benefiting from a preferential scheme, pursuant to the established Standards or Rules of Origin, and therefore, they can enjoy a preferential tariff treatment.
It is a document provided for by FTAs, Trade Agreements or Preferential Schemes, which shall be submitted to the customs authority receiving the goods in order to obtain the tariff benefits.
Some countries that do not grant tariff benefits, demand as a non-tariff requirement, the submission of an official document that backs up the origin of the goods exported there under. In order to support exporters in these cases, the Ministry of Economy created a certificate format for these transactions.
Not every certificate of origin used to obtain tariff benefits require the validation of the competent authorities (in Mexico, the Ministry of Economy).
Only five of the 12 Free Trade Agreements signed by Mexico require validation from the competent authority. These are: 1. FTA with Colombia and Venezuela, 2. Mexico-European Union FTA, 3. Mexico-Free Trade European Association, 4. Mexico-Uruguay FTA and 5. Mexico-Japan Agreement; the other 7 accept submitting certificates only with the exporter signature and they do not require validation by the competent authority, These are: 1. Mexico-United States and Canada (NAFTA), 2. Mexico-Bolivia, 3. Mexico-Costa Rica, 4. Mexico-Chile, 5. Mexico-El Salvador, Honduras and Guatemala (North Triangle), 6. Mexico-Israel, and 7. Mexico-Nicaragua.
Beneficiaries are persons established in the country, who export goods manufactured in national territory. The benefits consist of obtaining tariff preferences in destination countries by exporting products made in Mexico which meet an origin standard or requirement and are accompanied with a certificate of origin.
Refer to certificate of origin in: http://www.economia.gob.mx/?P=786
Refer to general aspects: http://www.economia.gob.mx/?P=787
Refer to legislation: http://www.economia.gob.mx/?P=788
Procedures related to the validation of certificates of origin can be carried out in the public service windows of the federal offices of the Ministry of Economy in the metropolitan area and the States. The response time is of one business day, starting from the day after receiving application. It can be submitted by the Internet.
Requirements:
•Fill the registry questionnaire, •Certificate of origin format.
Appendix:
•Legible copy of the exportation invoice, •Statistic appendix (original), •Copy of the certificate of origin (by duplicate) or •Certificate of origin (cancell and subsitute).
Procedure: http://www.economia.gob.mx/?P=789
Refer to formats and additional information on the procedure, in: www.cofemer.gob.mx
Foreign Trade Law: http://www.diputados.gob.mx/LeyesBiblio/pdf/28.pdf
Regulations of the Foreign Trade Law: http://www.diputados.gob.mx/LeyesBiblio/regley/Reg_LComExt.pdf Back>> |
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