The fact that products from different countries are subject to different transactions in the application leads to a necessity for establishing rules of origin. Origin of the goods is important for production of statistical data, where any restriction or preferential tariff is not imposed on foreign trade.
However, the rules of origin are getting more important as the world economy is grounded on a global background accelerating and promoting production activities based on comparative superiority. Today a small amount of goods is produced in one country from beginning to end. Therefore, identification of origin of products is getting more complicated and tiresome gradually due to variety of application of rules of origin.
Although there has been no particular international definition agreed on, “origin” can be defined as economic nationality of goods.
Rules of origin applied by any country to third countries can be based on preferential or non-preferential rules of origin. Non-preferential rules are rules of origin based on to impose compensated tax to the countries of WTO in accordance with “the most favoured nation clause”. In other words, a compensated tax rate is imposed to goods from any WCO country in compliance with the determined rules without any distinction.
Preferential rules of origin, as a deviation to “the most favoured nation clause”, are the rules which allow for special applications of country groups and the basis of which are defined by specific Agreements
Preferential Origin
Non-preferential Origin
Rules of Origin in Turkish Legislation
The System of Cumulation of Origin
Aim of Origin Cumulation
Bilateral Cumulation
Diagonal Cumulation
The System of Pan-European Origin Cumulation
Turkey and the System Pan-European Origin Cumulation
Turkey and the System of Pan Euro-Mediterranean Cumulation of Origin
Generalised System of Preferences (GSP)