The harmonized non-preferential rules of orioin vs. customs roles in exporting promotion case study : origin of rice

Abstract

The WTO Harmonized Non-preferential Rules of Origin have been set out with the objectives to eliminate the trade barriers between conflicting countries due to different consideration on the rules of origin among countries. Having clear, transparent and common standards will, therefore, facilitate the free trading. Thailand, as a member of WTO, has to conform to such agreements once completed and enforced. The objectives of this study are: 1) to present the overview and criterion of the Rules of Origin by studying Thai rice origin and the potential impacts to Thai rice exports. 2) The role of Thai Customs Department in the development of agricultural sector to promote Thai rice exports. 3) The role of Thai Customs Department to recommend solutions for the relating problems and impacts to maintain Thailand’s competitiveness in this borderless world. The study of this research includes the review of documents from World Customs Organization (WOO) and WTO and seminars, interviewing experts, and writer’s experience as well as the review of documentary researches on rice from various institutes with data collection on international trading statistics from Thai Customs Department during 1996-2000. Quantitative analysis will be presented in statistic, percentage and proportion. The study found that Thai rice exports heading 1006.10 to 1006.40 are not impacted from the Rules of Origin as Thai rice has Thai origin. The potential impacts to Thai rice exports are the comparative advantages comparing to other countries and the ability to solve problems and weakness in production, marketing and financial management. Regarding the role of Thai Customs Department in assisting the agricultural sectors to make adjustments to reduce impacts from the Rules of Origin, the study found that Thai Customs Department has the roles of coordinating and directing the consideration of criterion relating to the origin of various commodities in the 97 chapters (except chapter 77) covering more than 5,000 items, recommending and providing information to agricultural sector to make adjustment or to improve the input and/or production processes to reduce the impacts after the Rules of Origin has been put into effect. Lastly, it is Thai Customs Department who will put the Rules of Origin into operation.