亚开行-区域全面经济伙伴关系产品原产地规则分析（英）-2022.4-48页_731kb

Summary of "An Analysis of the Product-Specific Rules of Origin of the Regional Comprehensive Economic Partnership"

Core Content

This document provides an analysis of the Product-Specific Rules of Origin (PSRO) in the Regional Comprehensive Economic Partnership (RCEP), comparing them with those in the ASEAN Trade in Goods Agreement (ATIGA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The goal is to evaluate the stringency or leniency of PSRO in RCEP and to assess how these rules affect trade facilitation and market access for firms in the Asia-Pacific region.

Main Features of RCEP Rules of Origin

• RCEP Rules of Origin (RoO) are derived from the evolution of earlier FTAs and reflect a blend of ASEAN, Japan, Australia, and New Zealand practices.
• The RoO in RCEP include regional value content (RVC), change of tariff classification (CTC), wholly obtained (WO), and chemical reaction (CR) rules.
• The RVC threshold is set at 40%, and it is calculated using indirect (build-down) or direct (build-up) methods.
• The RCEP RoO are more specific and detailed compared to ATIGA and CPTPP, with a significant number of PSRO defined at HS subheading levels.
• A notable feature is the deduction of transport costs (freight and insurance) from the value of non-originating materials, aligning with modern FTA best practices.

Comparison of PSRO Forms in RCEP, ATIGA, and CPTPP

• RVC40: A good must have at least 40% regional value content, calculated using the formula in Article 3.5.
• CC (Change of Chapter): All non-originating materials must change tariff classification at the two-digit HS level.
• CTH (Change of Tariff Heading): Non-originating materials must change classification at the four-digit HS level.
• CTSH (Change of Tariff Sub-Heading): Non-originating materials must change classification at the six-digit HS level.
• WO (Wholly Obtained): Goods must be wholly obtained or produced in a Party.
• CR (Chemical Reaction Rule): Goods resulting from a chemical reaction are considered originating if the reaction occurs within a Party.

Methodology and Key Findings

• The study uses an innovative coding method based on manufacturing requirements to compare over 15,000 PSROs across RCEP, ATIGA, and CPTPP.
• RCEP PSRO show improvements over ATIGA, particularly in clarity and specificity of rules.
• However, RCEP does not fully simplify PSRO and related administrative procedures compared to other FTAs.
• The RVC calculation in RCEP is more aligned with CPTPP in terms of deducting freight and insurance costs, which is important for landlocked countries.
• Cumulation provisions in RCEP are limited to originating materials, and working and processing within the region are to be addressed in future reviews.

Convergence and Simplification Opportunities

• The analysis identifies sectors where PSRO could be made more lenient and where convergence between RCEP, ATIGA, and CPTPP is already occurring.
• RCEP's PSRO are mostly defined at CTH or CTSH levels, which is more detailed than ATIGA and CPTPP.
• The number of PSRO in RCEP is 2,076, with 33 at chapter level, 732 at heading level, and 1,311 at subheading level.
• ATIGA and CPTPP have no PSRO at chapter level, with ATIGA having 2,735 PSRO and CPTPP having 2,959.

Recommendations

• The RCEP built-in agenda should be used to simplify PSRO and related administrative procedures.
• Ongoing work in intergovernmental forums like the World Customs Organization (WCO) and World Trade Organization (WTO) should be leveraged for further simplification.
• Convergence of PSRO across RCEP, ATIGA, and CPTPP is a key area for future policy development.
• Further research is needed on the administration of PSRO, especially in proof of origin, to improve trade efficiency and reduce trade costs.

Conclusion

• While RCEP has improved upon ATIGA and CPTPP in terms of clarity and specificity, it still lacks full simplification.
• The cumulation provisions and RVC are trade-friendly, but tariff differentials and complex administrative procedures may limit their effectiveness.
• Convergence of PSRO is essential for enhancing market access and trade facilitation across the region.
• The analysis serves as a basis for future policy recommendations and a road map for simplifying rules of origin in the Asia-Pacific region.