Chile wt/tpr/S/220 Page

Rules of origin

1. 
   Chile applies preferential rules of origin under its various RTAs; no non‑preferential rules of origin are envisaged in its legislation.²⁰ All the RTAs signed by Chile contain special provisions on rules of origin and certification procedures. Chile has notified the WTO Committee on Rules of Origin of the preferential rules of origin in some of its RTAs.²¹ Information on rules of origin in other agreements signed by Chile has been notified to the Committee on Regional Trade Agreements (see Table AII.3).
   
2. 
   Three kinds of rules of origin can be distinguished in the RTAs signed by Chile and they differ in terms of complexity, specificity and level of detail: (i) rules of origin in agreements which are similar to those in the North American Free Trade Agreement; (ii) rules in agreements negotiated with European countries; and (iii) rules of origin in Economic Complementarity Agreements (ECAs) concluded within the LAIA framework.
   
3. 
   Generally speaking, Chile's RTAs with countries on the American continent, Asian countries, the P‑4²² and Australia define goods as originating if they are wholly obtained or produced in the territory of the parties; if they are wholly produced in the territory of the parties exclusively from originating inputs; if they are produced from non‑originating inputs that undergo a change of tariff classification in the territory of the parties and comply with other requirements, or if they satisfy a regional content value requirement, calculated on the basis of detailed formulas.
   
4. 
   In the agreements signed with the European Community and the European Free Trade Association, rules of origin are based on the concept of "sufficient working or processing". Although they differ from product to product, the criteria for defining whether a good has been sufficiently processed or worked may include a change in tariff classification, a regional content value requirement or production process rules.
   
5. 
   The rules of origin in ECAs are based on Resolution No. 252 of 1999 of the LAIA Committee of Representatives. These are somewhat simpler rules of origin. In addition to products wholly obtained in the territory of the parties, goods which undergo a substantial transformation (i.e. a change in tariff classification) are also considered as originating. If there is no substantial transformation, a regional content value requirement applies calculated using a simple formula (c.i.f./f.o.b.). The rules of origin in the various ECAs signed by Chile were described in the Secretariat's Report for the 1997 Review of Chile.²³
   
6. 
   Imports benefiting from preferential treatment under a trade agreement must be accompanied by a certificate of origin. The procedures for certifying and verifying origin differ according to the agreement. In some RTAs self‑certification is allowed and there is a certificate of origin for this purpose, which in some cases may be issued and submitted electronically; verification of origin is initiated directly by the Customs of import and the procedures regarding the responsibilities and attributions of each entity participating tend to be very detailed. In agreements with European countries, origin is certified by the competent government authority (in Chile's case, the Dirección General de Relaciones Económicas Internacionales ‑ DIRECON (Directorate‑General of International Economic Relations)), which may not delegate this role; a special certificate of origin is required (with a particular watermark and colour) and verification procedures are conducted through the competent government authority. In ECAs, certification is the responsibility of the competent authority, which may delegate this task to other government or private bodies; the format for the certificate of origin is straightforward and the verification procedures are carried out through the certifying authority.²⁴
   
7. 
   As part of the action taken to move towards convergence of the trade agreements to which Chile is party, the authorities are exploring the possibility of setting up mechanisms for the cumulation of origin with partners in various agreements; for example, in the "Pacific Rim" framework (see Chapter II(4)(iii)), where Chile chairs a working group on convergence.