European Commission Proposes Simplified Rules Of Origin

by Ulrika Lomas, for LawAndTax-News.com, Brussels

21 March 2005

The European Commission announced on Thursday that it has adopted a strategy to establish new simplified rules of origin for the purposes of the EU's preferential trade arrangements with certain third countries.

The EC explained that change is considered necessary because the rules of origin, which determine which goods can benefit from the lower rates of customs duty under the preferential trade arrangements, are currently too complicated, as well as being susceptible to abuse.

It suggested replacing the current rules with a single value-added method for determining origin, in order to make them clearer as well as more development-friendly.

The changes will be made via legislative measures, and work on the first measure will commence immediately, the Commission revealed.

"I am very pleased that the Commission has adopted this framework for simplifying the complex customs rules of origin and making them more development-friendly" Taxation and Customs Commissioner László Kovács observed last week, continuing:

"Under these proposed new rules, developing countries would be better able to benefit from the tariff preferences the EU offers them. The proposed new rules would also be of benefit both to traders and to customs administrations."

Recommended