Exports under Preferential Trade Agreements
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1 Exports under Preferential Trade Agreements Presenter: Mr R. NABEE- Team Leader Origin Unit Date: July 2017
2 Overview Preferential Trade Agreements How to determine Rules of Origin Registration of Exporters/ Manufacturers at MRA Customs- Origin Unit E Declaration & Certificate of Origin
3 Preferential Trade Agreements IEPA Interim Economic Partnership Agreement ( between EU and ESA States) SADC Southern African Development Community IOC Indian Ocean Commission COMESA- Common Market for Eastern and Southern Africa TMFTA- Turkey Mauritius Free Trade Agreement PMPTA Pakistan Mauritius Preferential Trade Agreement
4 EU Member States
5 ESA Member States Madagascar Mauritius Seychelles Zimbabwe
6 SADC Member States Angola Botswana DRC Lesotho Madagascar Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe
7 Member States implementing the IOC Protocol Republic of Madagascar Republic of Mauritius
8 COMESA Member States Burundi Comoros Congo, DR Djibouti Egypt Eritrea Ethiopia Kenya Lybia Madagascar Malawi Mauritius Rwanda Seychelles Sudan Swaziland Uganda Zambia Zimbabwe
9 Determining Rules of Origin Two basic concepts for determining originating products: 1. Wholly obtained or produced From the ground- mineral, fruits, vegetables From the sea- fish, minerals Animals born and raised in Member State 2. Sufficiently worked or processed Change in tariff heading Material Content Rule Product Specific Rule Value added rule Combination of two or more of above criteria
10 Rules of Origin Example- Wholly Obtained Exports of Victoria Pineapples cultivated and harvested in Mauritius Exports of chicks born and raised in Mauritius
11 Rules of Origin Examples- CTH Change in Tariff Heading: -Raw Material used: straw material - heading End Product: straw basket - heading 4602
12 Rules of Origin Examples- Material Content Material Content: SADC Rules of Origin for plastic bottles: Manufacture in which value of materials of Chapter 39 does not exceed 55% of ex-works price of product Plastic Granules Plastic Bottles
13 Rules of Origin Examples- Product Product Specific Rule : Specific Rule SADC Rules of Origin for manufacture of textile garments: Manufacture from yarn Imported Materials Local Process Local Process
14 Substantial Transformation Example- Product Specific Rule Raw Material: Cotton Yarn from China (HS Heading 5205) Processing: Knitting, Washing, Cutting, Sewing, Ironing, Packing Output: Knitted Men Shirts (HS Heading 6105)
15 Value Added Rule The goods have been produced in a Member State wholly or partially from imported materials and the value added resulting from the process of production accounts for at least 35% of the ex-factory cost of the finished product e.g IOC Protocol
16 Insufficient Working or Processing Operations that are regarded as being only minor processing and thus cannot count as originating; List of prescribed operations as per trade agreements; Examples of common minimal operations include: Operations necessary for the preservation of goods during transportation or storage Operations to improve the packaging or the marketable quality of the goods or to prepare them for shipment, such as breaking bulk, grouping of packages, sorting and grading, repacking washing, cleaning; removal of dust, oxide, oil, paint or other coverings; ironing or pressing of textiles; simple painting and polishing operations; among others..
17 Import of Old Aged Whiskey in bulk for bottling in Mauritius Insufficient Processing Example
18 Cumulation Raw Materials imported: Cotton Fabric Imported from Lesotho under SADC Certificate of Origin Process of Manufacture in Mauritius: Dyeing, Cutting, Sewing/assembly, washing, ironing and packing Finished Products: Cotton men shirts for export to South Africa
19 Certificate of Origin- Defined Certificate of Origin (CoO)- document, required by foreign governments or organizations, declaring that goods in a particular international shipment are of a certain origin or are wholly obtained, produced or manufactured in a certain country, with aim of benefitting from preferential tariff treatment at import. Competent Authority MRA Customs EUR1 SADC IOC EURT PMPTA
20 Registration of Exporter/Manufacturers at MRA Customs-Origin Unit Purpose: Entitlement for exports under SADC Preferential Trade Agreement where importing client benefits from zero- rated Customs Duty Supporting Evidences: Particulars of Company/Manufacturer/Exporter Site Plan Production capacity Machinery used Subcontractors, if any Process of Manufacture Raw Materials List and Sourcing Finished Exported Products MRA Customs- Origin Unit- Monitoring of Exporters/Manufacturers, site visits and access to factory premises/ record keeping Pre/Post clearance Verification of process and documentary evidences
21 SADC Export Customs Declaration / E Certificate of Origin Process: Registered Exporter may seek a Customs Broker for electronic submission of Export Customs Declaration and Application for Certificate of Origin OR Registered Exporter can act as self-declarant Electronic messaging for clearance and certification
22 Critical Data Requirements Registration with MRA Customs- Origin Unit Raw Material Usage & wastage declared Documentary Evidence for proof of origin/process of manufacture (e.g Export invoice, Raw Mat evidences at imports..) HS Classification Advance Tariff Ruling & Origin Ruling
23 Benefits to Exporters/Manufacturers One time registration Online access of certificate by Importing Country Quick Delivery of CoO No processing / issuance charges at MRA
24 Online Resources Resources Customs (Export to the Southern African Development Community) Regulations 2000 SADC Protocol on Trade Request for HS. Classification Application for Advance Origin Ruling Integrated Tariff Websites
25 Content MRA Customs Dept-Assessment Section- Origin Unit Tel: Website:
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