Dubai – Invoking the resolutions of the Economic and Social Counsel of the Arab league and seeking to adopt best practices in fulfilling its Arab and international obligations, Dubai Customs began to implement the detailed rules of origin for Arab goods and products as from 23 March 2009 by issuing the customs policy no. (25) Of 2009 determining the implementation mechanisms.
Mr. Mohammed Al Muaini, Senior Manager of Tariff and Origin at Dubai Customs said: “the determination of origin or nationality of imported goods is necessary for applying trade policy procedures like customs tariff, restrictive quotas, anti-dumping and countervailing duties, protectionist measures and origin marks requirements or granting preferential duty for imports originating in countries having trade agreements with the UAE as well as for statistical purposes where such objectives are met by implementing both detailed and preferential rules of origin.”
One of the direct impacts of establishing a Pan-Arab Free Trade is the importance of adopting the detailed rules of origin under which the Party States exchange products and goods of Arab origin with specific trade preferential. Most of Arab states sustain insufficient raw and crude materials and poor mineral and manufacturing industries that feed other industries.
Many Arab states were forced to import raw and medium materials and semi-manufactured products from abroad especially from Europe, South East Asian countries, USA and Japan due to insufficiency of the needed Arab production materials and inputs.
“This is the main reason for producing detailed rules of origin for Arab goods and products,” Al Muaini affirmed.
“The key objectives of having detailed rules of origin are to increase intra-Arab trade volume and develop a mechanism to prevent converting the region` gains and concessions given thereof into incapable foreign products not being accorded an Arab origin, rectify the distorting effects arising out from unbalanced competition with foreign goods in Arab markets and promote the FTA impact on expanding production in Arab markets by adopting the principle of cumulative origin, which allows producers from an Arab state to import materials from another Arab state or specific group of Arab states without influencing the final product origin”, he added.
“The materials being imported from the Party States are treated as if originating in a Party State leading to intra-Arab industrial integration and realizing common Arab economic interest,” he maintained.
“the cumulative origin seeks to increase trade exchange among the industrial and commercial sectors of the Arab states, establish strategic economic sectors in areas of cooperation between Arab manufacturers, encourage investment opportunities and enhance Arab states capabilities to increase volume of exports,” he said.
Worth mentioning, Dubai Customs work on developing training plans and programmes to qualify the local industrial sector and enabling it to understand the importance of the detailed rules of origin and how to benefit from the agreement as to enhance the competitive advantage and increase exports volume.
Dubai Customs seeks as well to assist the industrial sector through providing technical advice to local factories. The aim is to qualify them to earn a preferential origin by introducing to them how their production lines can be adapted in consistence with the detailed Arab rules of origin requirements and hence benefiting from the preferential duties accorded by FTA agreement.
