Trade Hub Conducts Rules of Origin Training for the Botswana Department of Industrial Affairs
26 March 2012
On February 16, SATH conducted a Rules of Origin (RoO) Training Workshop for twenty officials from the DIA, the Attorney General's Chambers as well as the Department of International Trade (DIT) at the request of the Botswana Department of Industrial Affairs (DIA).
RoO are instructions contained in a particular trade agreement to determine the origin or nationality of a product. They are used to establish where a good was produced to ensure that only goods that originate from signatory States qualify for and are granted preferential market access under a given trade agreement.
The training covered issues such as: basic concepts of RoO; an overview of the Southern African Development Community (SADC) RoO; various trade agreements that are commonly used by Botswana exporters to take advantage of preferential market access in foreign markets (e.g. the SADC Free Trade Area (FTA), Botswana-Zimbabwe Trade Agreement, African Growth and Opportunity Act (AGOA), etc.); administrative processes and procedures to be followed in the fulfillment of RoO requirements; and, the role of the Botswana Unified Revenue Services (BURS) in RoO compliance.
The workshop noted that one of the causes of complexity in the implementation of the SADC RoO (particularly those relating to textiles and clothing) is that they attempt to mirror those used by the African, Caribbean and the Pacific (ACP) States in their trade with the European Union (EU).
The workshop also noted that some trade agreements that require a high percentage of local content (such as the Botswana-Zimbabwe Trade Agreement, which requires local content of 25%) make it difficult for many companies to export manufactured products. Subsequently, such export firms end up using trade agreements merely for exporting wholly produced goods.
The workshop also considered and discussed the difference in the significance and meaning of trade terms such as "packaging" and "manufacturing", which can differ from one trade agreement to another, as well as from one government department to another. These differences further complicate the issue of RoO for prospective exporters.
Participants enquired on the extent to which SATH can assist SADC Member States to simplify the SADC RoO, with the overall objective of facilitating trade and the flow of goods in the SADC region. Training initiatives on specific issues of importance are one avenue through which SATH influences policy discussions. In addition, the Common Market for Eastern and Southern Africa (COMESA)-SADC-East African Community (EAC) Tripartite Free Trade Area (FTA) is a new platform which provides opportunities to ease the stringency and complexity of the SADC rules.
In closing, the workshop discussed the possibility of a SATH organized workshop to consider the implications of the COMESA-SADC-EAC Tripartite FTA RoO for Botswana exporters as a follow-up to this training initiative.
RoO are instructions contained in a particular trade agreement to determine the origin or nationality of a product. They are used to establish where a good was produced to ensure that only goods that originate from signatory States qualify for and are granted preferential market access under a given trade agreement.
The training covered issues such as: basic concepts of RoO; an overview of the Southern African Development Community (SADC) RoO; various trade agreements that are commonly used by Botswana exporters to take advantage of preferential market access in foreign markets (e.g. the SADC Free Trade Area (FTA), Botswana-Zimbabwe Trade Agreement, African Growth and Opportunity Act (AGOA), etc.); administrative processes and procedures to be followed in the fulfillment of RoO requirements; and, the role of the Botswana Unified Revenue Services (BURS) in RoO compliance.
The workshop noted that one of the causes of complexity in the implementation of the SADC RoO (particularly those relating to textiles and clothing) is that they attempt to mirror those used by the African, Caribbean and the Pacific (ACP) States in their trade with the European Union (EU).
The workshop also noted that some trade agreements that require a high percentage of local content (such as the Botswana-Zimbabwe Trade Agreement, which requires local content of 25%) make it difficult for many companies to export manufactured products. Subsequently, such export firms end up using trade agreements merely for exporting wholly produced goods.
The workshop also considered and discussed the difference in the significance and meaning of trade terms such as "packaging" and "manufacturing", which can differ from one trade agreement to another, as well as from one government department to another. These differences further complicate the issue of RoO for prospective exporters.
Participants enquired on the extent to which SATH can assist SADC Member States to simplify the SADC RoO, with the overall objective of facilitating trade and the flow of goods in the SADC region. Training initiatives on specific issues of importance are one avenue through which SATH influences policy discussions. In addition, the Common Market for Eastern and Southern Africa (COMESA)-SADC-East African Community (EAC) Tripartite Free Trade Area (FTA) is a new platform which provides opportunities to ease the stringency and complexity of the SADC rules.
In closing, the workshop discussed the possibility of a SATH organized workshop to consider the implications of the COMESA-SADC-EAC Tripartite FTA RoO for Botswana exporters as a follow-up to this training initiative.
Activities