Multi Systems for Proof of Origin in Preferential Free Trade Agreements
The ICC World Chambers Federation Certificate of Origin Council released a new recommendation paper, noted and reviewed by the ICC Global Customs and Trade Facilitation Commission, calling for the inclusion of multi systems for proof of origin in FTAs.
ICC World Chambers Federation International CO Council is urging all economies negotiating FTAs to ensure that the Rules of Origin Chapter provisions include an equivalent multi system that would give traders a choice of method when making compliance statements for meeting the preferential origin conferring criteria. These methods should include:
- Self-declared statements of origin supported by a high quality ‘trust’ ecosystem; and
- electronic or documentary Certificate of Origin certified by an authorised third-party
In recent decades, the proliferation of FTAs and the different requirements for evidencing origin have indeed over-complicated the system, creating inefficiencies for both regulators and traders, particularly small- and medium-sized enterprises (SMEs).
The inclusion of this multi system will ensure legal security for business, safeguard data quality, and promote harmonisation which reduces costs for traders and governments.
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