Verification of Certificates of Origin in Economic Integration Agreements Signed by Latin American Countries

As explained in issue No. 236 of the FAL Bulletin in April 2006, the origin procedures in economic integration agreements (EIAs) signed by Latin American countries pertain to the issuance of certificates of origin and to the verification of origin when a product is imported. While that issue focused exclusively on the issuance of certificates of origin, the present edition concludes the cycle by dealing with the verification of that origin. Both subjects are related to the document entitled "Emisión y verificación de origen en acuerdos de integración económica suscritos por países de América Latina: debilidades y fortalezas".

Rules of origin in economic integration agreements signed by countries belonging to the Latin American Integration Association

This article refers to rules of origin included in the main Economic Integration Agreements signed by members of the Latin American Integration Association (LAIA). Issues relating to trade facilitation and reduction of transaction costs of international trade in goods are also discussed.The author is on the staff of the International Trade and Integration Division of ECLAC.

Issuing of certificates of origin in some economic integration agreements signed by Latin American countries

In the context of an economic integration agreement (EIA), the issuing and verification of certificates of origin are carried out in accordance with procedures which ensure compliance with the rules of origin. Each EIA has its own system of rules of origin with their corresponding procedures. The purpose of the rules is to define clearly the geographical provenance of a good which may benefit from preferential tariffs in the importing country. The main purpose of the rules of origin is to avoid the diversion of trade, so that preferential tariff treatment is applied only to those products negotiated between the parties. The rules of origin of an EIA are more important than the actual process of tariff reduction, as that process is concluded at some point in time, whereas the rules of origin remain applicable indefinitely.