Rules of Origin
12 October 2016 - IMPLEMENTATION OF THE SADC-EU ECONOMIC PARTNERSHIP AGREEMENT (EPA)
The SADC-EPA group (Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland) and the EU have reached the final stages towards the implementation of the SADC–EU Economic Partnership Agreement. These include fulfilment of ratification processes by the SADC-EPA countries while the European Union (EU) required approval for provisional application of the Agreement. All the SACU member states have deposited their instruments of ratification of the Agreement and the EU has notified provisional application of the Agreement.
The Agreement has provisionally entered into force between SACU member states and the EU on 10 October 2016 for all provisions of the Agreement, except for the new agriculture market access that requires an exchange of letters between the EU and South Africa (SA) to confirm the protection of each other’s Geographical Indications names (GIs). It is expected that the new agricultural market access will enter into force on 01 November 2016.
For SA and the EU, the SADC-EPA will replace the trade chapter in the Trade, Development and Cooperation Agreement (TDCA).
SARS will administer the SADC-EPA once the legislation has been approved and published in the Government Gazette, and will be applied with retrospective effect to 10 October 2016. The customs and excise rules to give effect to the SADC-EPA will be published in the Government Gazette on 12 October 2016.
The following arrangements for the smooth transition from the TDCA to the SADC-EPA have been made:
- Traders registered under the TDCA will continue to trade under the SADC-EPA, and are not required to complete a new DA 185 for registration.
- Existing Approved Exporters and their Authorisation Numbers issued under the TDCA will continue to enjoy the same benefits under the SADC-EPA.
- Blank EUR.1 Movement certificates issued under the TDCA may be used for purposes of the SADC-EPA.
For additional information, email firstname.lastname@example.org.
What are Rules of Origin?
Rules of origin are the criteria that are used to define where a product was made. They are an essential part of international trade rules because of policies that “discriminate” between exporting countries.
The origin of a product is used to determine the import duty payable and whether it is subject to an antidumping or countervailing duty. It is also used for the compilation of trade statistics and for “Made in …” Labels.
In other words, the origin of a product is important because it will determine how it is treated at the border of an importing country and the origin may impact on the import duty payable and admissibility into the country.
In addition, rules of origin may also determine whether goods are entitled to the payment of less or no Import duties. For this reason, there is a distinction between non-preferential and preferential rules of origin.
The non-preferential rules are applied for “Most-favoured Nation” (MFN) trade purposes (i.e. where goods are subject to the general rates of duty) and the preferential rules of origin are applied in the case of Free Trade Agreements and other preferential duty schemes (e.g. agreements where countries have agreed to eliminate or reduce import duties on goods produced in each other’s territories).
South Africa has signed a number of trade agreements with its trading partners in the past few years, including the TDCA, SADC and EFTA trade agreements. More information on these and other trade agreements can be found under Trade Agreements.
Apart from trade agreements, South Africa also benefits from other international instruments or agreements, such as the African Growth and Opportunity Act (AGOA) and the different Generalized Systems of Preferences (GSPs), of which you will find more information under Other International Agreements.
To see the recent changes to the GSP introduced 1 January 2014, click here.