Legal aspects of application of rules of origin of goods in regional comprehensive economic partnership

Abstract

The author analyzes the legal conditions of trade in goods in the markets of RCEP member states. The object of this research is the rules of origin of goods and the application of preferential tariffs under the Regional comprehensive economic partnership agreement in force since 1st January 2022. The author identifies the uniqueness of the rules of origin of goods, gives examples of determining the country of origin of goods, and how in practice the transformation of raw materials into ready-made is carried out in the sense of customs classification. The clarity of the provisions on the Rules of Origin and the Code of Practice for Certification of Origin will encourage the liberalization of trade in goods under the RCEP to be effective, transparent and fair to all parties. The rules of the ASEAN FTA and the RCEP agreement are compared in detail to identify the advantages and disadvantages of trade in goods within the largest preferential zone in the world. RCEP members agreed to apply product-specific rules for every tariff–line. There is no General Rule under RCEP. All 5,205 products have their own Products-Specific Rules. The author shows the method of calculation of regional value content, explains under what conditions a product may fail to satisfy the RVC criteria. The article reveals the topic of customs clearance, id est, operational certification procedures. The author pays special attention to the issue of the impact of the RCEP agreement on trade in goods, especially agricultural products, between Ukraine and the Asian region. To assess the effect of RCEP agreement on the export of agricultural goods from Ukraine to Asian states, the author compared tariffs and schedules of commitments under WTO framework and RCEP. The results of the study show a slight impact of the new agreement on trade relations between Ukraine and the RCEP countries, but 15 RCEP MS will gradually reduce trade tariffs in the future and Ukraine needs to reconsider its trade strategy with Asian countries. Finally the author draws conclusions that the trade liberalization in RCEP entails considerable reforms, beyond simply removing tariffs and non-tariff barriers. This topic will be explored in upcoming publications of the author.