local content rule

(redirected from rule of origin)

local content rule

or

rule of origin

the stipulation by a country that for a product to qualify as an authentic domestically manufactured product (that is, originating in that country) the product must be manufactured predominantly from locally supplied as opposed to imported components. Local content rules are used by governments mainly to prevent the operation of so called ‘screwdriver’ plants (plants producing final products from mainly imported components) established to circumvent TARIFFS, QUOTAS and anti-dumping duties imposed on imported final products. See DUMPING, CERTIFICATE OF ORIGIN.

local content rule

or

rule of origin

the stipulation by a country that for a product to qualify as an authentic domestically manufactured product (that is, originating in that country) the product must be manufactured predominantly from locally supplied, as opposed to imported, components. Local content rules are used by governments mainly to prevent the operation of so-called ‘screwdriver’ plants (plants producing final products from mainly imported components) established to circumvent TARIFFS, QUOTAS and COUNTERVAILING DUTIES imposed on imported final products.

The application of local content rules poses various problems - in particular, the proportion of the final product that has to be sourced domestically (see SOURCING) for the product to qualify as a locally produced one, and how the extent of local content is to be measured (number, value of components, etc.). See MULTINATIONAL COMPANY, PROTECTIONISM, CERTIFICATE OF ORIGIN.

References in periodicals archive ?
Therefore, the domestic garment and textile businesses have not taken many advantages of FTAs since they cannot meet the rule of origin requirements.
Utilization of a rule of origin is a multi-step process that tends to be inefficient.
The rule of origin on autos governs how much of a vehicle s content must be produced by the twelve TPP countries to get the preferential treatment the TPP will provide.
rule of origin to make it more difficult for European and Japanese
In order have an effect on the rule of origin it has to be known what direction the economic growth would move into.
Although the tariff-shift requirement is a staple of almost every free trade agreement, many Latin American trade agreements also provide for--and in some cases require--a third rule of origin.
Dr Baig said that Bangladesh also has to give Pakistani fabric GSP under SAARC Regional Cumulation and as per EU move to change the rule of origin from January 2010.
Specifically, the SAA states that any interested person may submit a petition to the Department of Commerce's interagency Committee for the Implementation of Textile Agreements (CITA) requesting an amendment to a particular rule of origin based on a change in the availability in North America of a particular fiber, yarn or fabric.
Despite the uncertainty of FTAA, the issue of whether or not the United States should negotiate one rule of origin for apparel and textiles is hotly debated among importers and the domestic textiles industry.
AFFI Urges Treasury Department To Delay Rule Of Origin Implementation
The first ruling is the reinterpretation of the rule of origin for integrated circuits (February 1989).
trade negotiators to reconsider its support for restrictive rules limiting textile and apparel trade based on the so-called "yarn-forward" rule of origin.