The Rules of Origin Facilitator: a new tool for increasing trade: A joint initiative by the ITC and the WCO helps micro, small and medium-sized enterprises (MSMEs) benefit from international trade opportunities.

• Author: Kniahin, Dzmitry
• Position: ITC IN ACTION - International Trade Centre - World Customs Organization

The Rules of Origin Facilitator is a new online tool which makes navigating the complex landscape of trade agreements easier. It allows micro, small and medium-sized enterprises (MSMEs) to find opportunities to benefit from preferential duty rates and learn about the conditions they would need to fulfil.

There are currently over 400 free trade agreements and preferential trade arrangements in place worldwide. They allow importers to claim a lower rate of customs duties provided certain conditions are met. Origin requirements are a highly complex area of trade. Many companies, particularly smaller ones, are not aware of trade agreements and related tariff preferences; if they are, they do not know how to take advantage of the low duty rates available for their product.

For importers, not taking advantage of such opportunities leads to overpayment of customs duties in cases where goods are eligible for preferential rates. For exporters, this means losing comparative advantage over competitors. According to International Trade Centre (ITC) business surveys on non-tariff measures in over 60 countries, rules of origin and related certification requirements are among the most frequently cited trade obstacles for MSMEs.

The Rules of Origin Facilitator is the first global searchable database on trade agreements, preferential tariffs and origin requirements. The tool, developed by ITC and the World Customs Organization (WCO), was unveiled in mid-2018.

Launching the tool, ITC Executive Director Arancha Gonzalez said: 'This new Rules of Origin tool will improve transparency in global trade. It will generate more trading opportunities for MSMEs, which will be able to profit from benefits offered by trade agreements, by making complicated trade rules more transparent and easily accessible through the new tool.'

WCO Secretary-General Kunio Mikuriya said: 'WCO is pleased to team up with the ITC for this new, joint initiative to increase transparency and knowledge in trade and make the subject of rules of origin more easily accessible for Customs officers, companies, trade policymakers, and trade institutions.'

Available online at findrulesoforigin.org, the Rules of Origin Facilitator contains information on trade agreements and applicable tariff rates at the detailed product level. The database includes product-specific rules of origin as well as provisions on origin certification, cumulation, audit trail, shipment and invoicing. Necessary documentation...