TRANSPOSITION OF
DRAFT NON-PREFERENTIAL
RULES OF ORIGIN
INTO HS 2002, HS2007 and HS2012
Committee on Rules of Origin
November 2012
BACKGROUND
 At the meeting of 27 October 2011, the CRO agreed
to initiate the “Transposition Exercise“
 i.e. the rectification of draft harmonized nonpreferential rules of origin to adapt them to more
recent versions of the HS nomenclature
 Basis: draft Consolidated Text (G/RO/W/111/Rev.6,
originally negotiated in HS1996)
 HS 2002, 2007 and 2012
 To be initiated immediately, to be completed as early
as possible (- see G/RO/M/57)
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How is work conducted?
 Conducted by the WTO Secretariat (Market Access Div.), in
collaboration with Members and TCRO
 Based on the correlation tables published by the WCO
2002
2007
0603.10 - Fresh - Fresh :
0603.11 -- Roses
0603.12 -- Carnations
0603.13 -- Orchids
0603.14 -- Chrysanthemums
0603.19 -- Other
Remarks
Subheading 0603.10 has been
subdivided creating new
subheadings 0603.11- 19 due
to the expansion of volume of
trade.
 WCO Secretariat: consulted if needed
 HS1996-2002: Non paper prepared by the WCO for the 21st
Session of the TCRO, “How to deal with the technical rectifications
relating to changes in the HS”
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How are Members kept informed?
 As soon as results are ready:
 WTO Members' Website (usual passwords)
 http://members.wto.org/members/
 WTO Resources / Market Access - Rules of
Origin / Transposition
 Fax informing delegations that fresh results are
available
 Email to Members (who have registered with
the Secretariat)
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What does the work entail?
• Most of the times, the transposition entails a purely
mechanical exercise
– No rectification is required: e.g. the rule is set at the
heading level and the changes occur at the subheading level
– The ROO may be transposed directly: e.g. the rules is
at the split-heading level and changes occur at the
heading or sub-heading level
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What does the work entail?
• In a few cases, the adjustments needed are
more complex
• The transposition requires simple changes: e.g.
creation of a new split to set aside a product moved
into a new sub-heading
• The transposition may require more complex changes:
e.g. the addition of exceptions to the ROO (“Except
from”) or even both (new splits, new exceptions)
These cases raise the question of the application of
the rules in practice!  Possible simplification needed
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Types of
Amendments
Within a single heading
Beyond a single heading
A. Complete reorganization of the
coverage of a subheadings (scrap
and built)
B. Deletion of subheading(s) within
the same heading (the residual
subheading covers more goods than
before)
A. Reorganization of Chapter Structure
B. Deletion of a heading or subheading
transferring the content to one or
more headings or subheadings
C. Splitting the coverage of a heading
into several headings within the same
Chapter
C. goods initially covered by one
subheading are now covered by
several subheadings (new splits)
D. Entirely new heading or subheading
covering goods that were classified in
other heading(s)
D. Entirely new subheadings in a
heading
E. Amendments to the heading text
only but which result in a change in
the scope of the heading
2002-2007: Types of Rectifications
Creation of both
new splits and new
exceptions
Creation of new
exceptions to the
rule
4%
24%
Creation of
new splits
Purely
mechanical
16%
52%
4%
More complex
cases: change of
the rule, creation
of new subheading with
splits and
exceptions, etc.
How is work conducted?
 The WTO Secretariat is undertaking purely mechanical
rectifications, including for the more complex cases
 Members, the WCO or the TCRO may recommend
simplified rules for the more complex cases
 Members must discuss changes to the rule or possible
simplifications of the rule (e.g. deletion of the
exceptions)
 Hence, comments from Members that entailed some
level of simplification or change of the ROO were left
aside for the moment
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1996-2002 transposition
 Results presented at the 06 June 2012 CRO
meeting - JOB/RO/2
 Comments received from the EU, Egypt, Japan,
Mexico, Norway, Switzerland and Thailand
 These comments shall be reflected in a future
revision
 Recommendations by the TCRO are forthcoming
 Additional comments are accepted at any time
 The intermediate results of this work need to be
reviewed by Members but need not be formally
endorsed.
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2002-2007 transposition
 August 2012: partial results circulated for Chapters 1
to 50 (RD/MA/38 )
 October 2012: partial results circulated for Chapters
44 + 51-97 (RD/RO/1)
 The Secretariat received comments from the EU,
Japan, Mexico, Norway, Switzerland and Thailand on
the first part (Chapters 1- 50)
 The Secretariat received comments from Japan and
Norway on the second part (Chapters 51-97)
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2002-2007 transposition
2 types of comments
Corrections
2833.29
Simplifications, questions
Sulphates;
alums,
peroxosulp
hates
-- Other
As specified
for split
subheadings
ex.2833.29(a)
--- Of
CTSHS
chromium
ex.2833.29(b)
--- Of zinc
CTSHS
ex.2833.29(c)
--- Other
CTSHS,
except from
ex.28.52(f)
2833.30
Alums
28.11
Other
inorganic
acids
As specified
for
subheadings
2811.21
-- Carbon
dioxide
CTSH
2811.22
-- Silicon
dioxide
CTSH
2811.29
-- Other
As specified
for split
subheadings
ex.2811.29(a)
--- Sulphur CTSHS
dioxide
ex.2811.29(b)
--- Other
CTSHS
 CTSH
CTSHS
X Split not needed, 28.11 (CTSH)
2002-2007 transposition
 Late October 2012: document JOB/RO/3 was
circulated with the entire results:
 Chapters 1 to 50 – already revised in light of
comments received (editorial changes, mistakes
and omissions only)
 Chapters 51-97 – not revised yet
 Present complex cases today
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2007-2012 transposition
 The Secretariat is ready to begin the transposition of
draft harmonized rules to the HS 2012 nomenclature
 Possible presentation of the initial draft results to
Members in early 2013
 Circulation of results in 2 parts
 Consolidated in a single document: JOB/RO/4
 Presentation of results at the CRO meeting of
April 2013
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Next steps
 Preparation and circulation of

JOB/RO/2/Rev.1 – revised HS2002 rules

JOB/RO/3/Rev.1 – revised HS2007 rules

JOB/RO/4 – HS2012
 Additional comments by Members at any time
 Comments by the TCRO: may require a discussion by the
CRO
 Results must be verified, accurate. But need not be
validated
 Preparation of a new consolidated text with the transposed
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rules: G/RO/W/111/Rev.7
Thank you for your attention!
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