INGENIEUR
responsible , and constructive . In addition , RCEP has the added value of bringing together a single rule book to help facilitate the development and expansion of regional supply chains among Parties .
SUMMARY OF SALIENT CHAPTERS Initial Provisions and General Definitions
This chapter sets out the objectives of RCEP , which are to establish a modern , comprehensive , high-quality , and mutually beneficial economic partnership that aims to facilitate the expansion of regional trade and investment and contribute to global economic growth and development , taking into account the stage of development and economic needs of the Parties especially for least developed Parties .
Trade in Goods
Chapter 2 , Trade in Goods , contains key elements that govern the implementation of goods-related commitments to achieve a high level of trade liberalisation among the Parties . These include :
● granting national treatment to the goods of the other Parties ;
● reduction or elimination of customs duties and duty-free temporary admission of goods ; and
● reaffirmation of commitments in the WTO Ministerial Decision on Export Competition , including elimination of scheduled export subsidy entitlements for agricultural goods .
The chapter also sets out rules for determining the applicable tariff treatment in cases of different tariff preferences applied by a Party . In addition , it contains provisions on non-tariff measures that complement tariff liberalisation outcomes . These include :
● the general elimination of quantitative restrictions ;
● greater transparency on the application of non-tariff measures ;
● administration of import licensing procedures ; and
● application of fees and formalities connected with importation and exportation .
Finally , it also sets out a process for Parties to conduct technical consultations on non-tariff measures that adversely affect trade between them and also provides for the possibility of future work to be undertaken on sector specific initiatives to facilitate greater trade .
Rules of Origin ( ROO )
The ROO Chapter determines which goods are originating under RCEP and therefore eligible for preferential tariff treatment . It has two Sections : Section A : Rules of Origin and Section B : Operational Certification Procedures . Articles on Originating Goods and Goods Wholly Obtained or Produced and the Annex on Product-Specific Rules ( PSR ) set out the requirements for determining the originating status of goods .
The chapter lists the minimal operations and processes considered insufficient to confer originating status on goods using non-originating materials . Given the geographic configuration of countries in RCEP , the Parties ensured that the ROO Chapter includes clear direct consignment rules so that originating goods do not inappropriately lose their originating status . If a good does not satisfy a change in tariff classification rule in the PSR , this chapter lays down certain de minimis rules whereby the good could still acquire originating status . Other elements covered under Section A : Rules of Origin include the treatment applied to packing and packaging materials , containers for transportation and shipment , and the treatment of accessories , spare parts and tools .
Section B : Operational Certification Procedures provides detailed procedures for applying the RCEP proof of origin , claiming preferential tariff treatment , and verifying the originating status of a good . An enhancement relative to the ASEAN Plus One FTAs is the inclusion in the Section of the declaration of origin by approved exporters and the declaration of origin by all exporters or producers , the latter of which will be implemented within a certain period of time after the dates of the entry into force of RCEP for each of Party , in addition to the traditional certificate of origin . The ROO Chapter has two annexes : ( i ) the Product-Specific Rules , which cover all tariff lines at the HS 6-digit level ; and
62 VOL 85 JANUARY - MARCH 2021