Republic of Turkey MINISTRY OF CUSTOMS AND TRADE TPS-OIC Rules of Origin Directorate General of the EU and External Relations 2015, Ankara

Republic of Turkey

MINISTRY OF CUSTOMS AND TRADE

TPS-OIC Rules of Origin

Directorate General of the EU and External Relations2015, Ankara


Instrument of COMCEC to foster

intra – OIC trade

Three Pillars:

Framework Agreement

PRETAS

Rules of Origin

What is TPS-OIC?


Framework Agreement

PRETAS

Rules of Origin

= Legal basis of TPS-OIC System completed

Three Pillars of TPS-OIC

+


Required:

Submission of the list of concessions

Completion of internal legislative

procedures

Completion of administrative issues

Steps towards practice


I. General Provisions

II. Originating Products

III. Territorial Requirements

IV. TPS-OIC Certificate of Origin

V. Arrangements for Administrative

Cooperation

VI. Final Provisions

Chapters of TPS-OIC RoO


Article 1 – Scope

Article 2 - Definitions

Chapter I General Provisions


Article 3 – General Requirements

Article 4 - Wholly Produced or Obtained

Products

Article 5 - Sufficiently Worked or

Processed Products

Article 6 - Cumulation in the

Participating States

Chapter II Originating Products


Article 7 - Insufficient Working or

Processing

Article 8 - Unit of Qualification

Article 9 - Accessories, Spare Parts and

Tools

Article 10 – Sets

Article 11 – Neutral Elements

Article 12 – Prohibition

Chapter II Originating Products


According to Article 3, products eligible for preferential regime should:

Chapter IIProducts eligible for preferential

regime

be wholly produced or obtained OR

have been undergone

sufficient working or processing

in the manufacturing Party


According to Article 4, wholly produced or obtained products are:

Chapter IIWholly produced or obtained products

raw or mineral products extracted from soil agricultural products harvested, live animals born and raised there, products obtained from animals born

and/or raised there; products obtained by hunting, fishing or

aquaculture activities conducted there; etc…


Article 5 sets the value added criterion if non originating material is used in production:

Chapter II Sufficient workings or processings

Non-originating materials can be used in manufacture unless the value of such materials does not exceed 60% of the ex-works price of the product. (70 % in the case of LDCs.)

TPS-OIC Rules of OriginIf the materials originating in a third country

used in the production

If do the materials originating in a 3rd country satisfy the 60 % value added rule (are they sufficiently

worked or processed) ?

originating in Turkey

not acquired originating status

YES

NO


Chapter II – Sufficiently Working-Processing

VIETNAM PAKISTAN

StandartCertificate of Origin

Fabric

TPS-OICCertificate of Origin

Shirt

TURKEY


Article 6 stipulates the cumulation between the Parties provided that :

Chapter II Cumulation

• the working or processing carried out in the manufacturing Party goes beyond the insufficient operations AND• the aggregate content originating in the manufacturing Party is not less than 40 % of the ex-works price of the product. (30 % in the case of LDC’s)

Are workings or processings in Turkey beyond insufficient workings and processings?

YES

NO

originating in Turkey

Is value added in Turkey the highest one compared to the value of the materials

originating in each of the contracting parties?YES originating in Turkey

The country of which the materials with highest value are originating in

NO

TPS-OIC Rules of OriginIf only the materials originating in the contracting

parties are used in the production

TPS-OIC Rules of OriginChapter II

Cumulation

PAKISTAN

TURKEYFABRICTPS-OIC

Certificate of Origin

SHIRTTPS-OIC



Article 7 deems some operations as insufficient to confer origin even if cumulation is applied between parties or value added criterion is met:

Chapter IIMinimal Operations

(Insufficient Working or Processings)

Packing, simple mixing, bottling, labelling, marking, sorting or grading, splitting into lots, simple assembly, washing, cleaning, ironing, etc…

- Originating materials (proof of origin bysuppliers declaration or own bookkeeping)

- Non originating materials (the customsvalue at the time of importation)

-Wages (Labour costs)

-Profits

-Overheads (e.g. administrative, selling, marketing expenses)

- Costs regarding the IPR’s


Ex-Works Price

Ex-works price does not include;

-Internal taxes (repaid when the end-product is exported)

- Costs of transporting the end-product to the customer.


Ex-Works Price


Chapter IICategories of the goods

to benefit from preferences wholly produced or obtained goods,

goods of which the materials originating in other Parties used in their production,

goods have been undergone sufficient workings or processings

in the manufacturing Party,

provided that ALL conditions under Chapter II have been satisfied


Article 13 - Direct Consignment

Article 14 - Exhibitions

Chapter III TERRITORIAL REQUIREMENTS


Article 15 - General Requirements

Article 16 - Procedure for the Issue of

a TPS-OIC Certificate of Origin

Article 17 - Certificates of Origin Issued

Retrospectively

Article 18 - Issue of a Duplicate TPS-OIC


Chapter IV TPS-OIC CERTIFICATE OF ORIGIN


Article 19 - Issue of Certificates of Origin on

the Basis of a TPS-OIC Certificate of Origin

Issued or Made out Previously

Article 20 - Validity of TPS-OIC Certificate of

Origin

Article 21 - Submission of TPS-OIC Certificate

of Origin



Article 22 - Importation by Instalments

Article 23 - Supporting Documents

Article 24 - Preservation of TPS-OIC

Certificate of Origin and Supporting Documents

Article 25 - Discrepancies and Formal Errors



Article 26 - Mutual assistance

Article 27 - Verification of Certificates of

Origin

Article 28 - Dispute Settlement

Article 29 – Penalties

Article 30 – Free Zones

Chapter V ARRANGEMENTS FOR

ADMINISTRATIVE COOPERATION


Article 31 - Goods in Transit and Storage

Article 32 - Amendments

Article 33 - Entry Into Force

Article 34 – Annex

Chapter VI FINAL PROVISIONS


Possibility of drawback or exemption from customs duties

Prohibition clause Direct consignment rule Certification (Chapter IV) Administrative cooperation

Important Points


The TPS-OIC Rules of Origin shall enter into force on the thirtieth day of the dateof receipt by the depository of instruments of ratification, acceptance or approvalby at least ten Governments of the Participating States.

Subsequent accession to this TPS-OIC Rules of Origin by any Participating State shall be effective one month after the date on which it has deposited its instrument of ratification.

Chapter VIArticle 33 - Entry into Force


PRETAS has been approved

List of concessions submitted

TPS-OIC Rules of Origin have been

approved

Specimen impression of stamp used by

Turkish Customs submitted

Implementing provisions to be published

State of Play in Turkey

. Thank You .

Mr. Bülent Orhan TÜRELHead of Department for Mutual Administrative Cooperation

+90 312 449 27 30 28 23 – 24 - 75

[email protected]@[email protected]@gtb.gov.tr

mailto:[email protected]


