OVERVIEW OF CHAPTER 3 OF THE TPP: RULES OF ORIGIN AND ORIGIN PROCEDURES

The objective of Chapter 3 of the TPP is to set rules of origin in order to ensure that TPP Parties fully enjoy the benefits provided by such FTA. Rules of origin are important as they define whether a good is originating and thus suitable to enjoy the TPP preferential tariff benefits.

According to Article 3.2, a good is originating if it is:

  1. Wholly obtained or produced entirely in the territory of one or more of the Parties (in the meaning of Article 3.3);
  2. Produced entirely in the territory of one or more of the Parties, exclusively from originating materials;
  3. Produced entirely in the territory of one or more TPP Parties using non-originating materials provided that the good satisfies all applicable requirements of Annex 3-D,

Furthermore, the good must satisfy all the other applicable requirements of Chapter 3.

This chapter also provides for accumulation. Accordingly, an originating good and/or material coming from one or more TPP Party that is used in the production of another good within the territory of another Party to the Agreement shall be considered originating in the territory of the other Party.

Another contribution of chapter 3 is to create a rules-system of showing and verifying that goods produced in the TPP meet the rules of origin. Thanks to this system, business can easily operate in the TPP region. In order to enjoy the benefits provided by the preferential treatment related to tariffs, importers must present the concerned documentation (for example, the importer of the good must provide a written request for information, as prescribed by article 3.27).

Furthermore, the Parties hereby establish a Committee on Rules of Origin and Origin Procedures that is entitled to consider any possible matter arising under this chapter.