CARIBBEAN COMMON MARKET (CARICOM)

Rules of Orgin  | List on Minimal Processes

    Goods are eligible to enter the Caribbean Common Market (CARICOM) free of customs  duty provided that they comply with the Rules of Origin governing the agreement.



    List of CARICOM Countries

    Antigua and Barbuda  Jamaica
    Barbados  Montserrat
    Belize  St. Kitts and Nevis
    Dominica St. Lucia
    Grenada St. Vincent and the Grenadines
    Guyana Suriname
    Haiti (Observer Status)
    Trinidad and Tobago


    Rules Of Orgin

    Wholly Produced
    Goods must either be grown in a CARICOM country or produced from raw materials which originated in a CARICOM country.

    Change of Tariff Heading
    This condition specifies that the extra-regional materials used in the working or processing must be classified in a four-digit heading of the Harmonized Commodity Description and Coding System (HS), which is different from the four-digit heading in which the finished product is classified. (Extra-regional materials are those materials which do not themselves qualify for Common Market treatment or originated outside of CARICOM)

    Produced from Certain Regional Materials
    For a number of items, the rules state that certain regional materials must be utilized in the process of production. This is particularly the case in the production of a number of food products, which fall in Chapters 1 to 24 of the HS. In these, the materials specified for use must themselves qualify for Common Market treatment. No other condition applies, so that any other materials used may be of extra-regional origin.

    Produced from materials of Specific Headings
    This qualifying condition specifies the materials, which must be used, without requiring that they be regional. At the same time, the materials specified must enter the process of production in the condition specified in the heading referred to. It is to be noted that a raw material may be utilized in an earlier stage of production but not later or from regional materials

    Produced from Certain Materials not included in a Specific HS Heading
    For these products, the qualifying condition specifies the material, which may not be used if the item produced, is to qualify for common market treatment.

    Produced by Specific Processes
    In the production of certain chemical products and plastics, as well as re-treading and remolded tyres, the qualifying condition is expressed as a process; chemical transformation, in the case of chemical products and plastics, and re-treading and remolding, in the case of re-treaded and remolded tyres.

    The Percentage Value-added Condition
    Where the qualifying condition prescribed is the percentage value-added, the value of extra-regional materials, which may be used in the production of an item, is limited to a percentage of the export price of the item produced. The specific percentages vary from item to item.

    List on Minimal Processes

    If an item is produced solely by one or more of the following processes, it would be ineligible for Common Market treatment, whether or not the “change of tariff heading' takes place, or the required level of percentage value-added have been achieved:

    1. operations to ensure the preservation of goods during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or aqueous solution, removal of damaged parts and like operations);
    2. simple operations consisting of removal of dust, sifting or screening, sorting, grading, classifying, matching (including the making up of sets of articles) washing, painting and cutting up resulting in the mere reduction in size;

    3. (i) changes of packing;
      (ii) simple packing operations

    4. affixing marks, labels or other like distinguishing signs on goods or their packaging;
    5. simple mixing of extra-regional materials if the characteristics of the goods as a whole are not essentially different from the characteristics of the materials which have been mixed;

    6. operations which consist solely of welding, soldering, fastening, riveting, bolting and like operation, or otherwise putting together of all finished parts or components to constitute a finished product.

    Safeguard Mechanism
    For a number of products the conditions to be complied with under the Origin Rules require that they be wholly produced or produced from certain regional materials.

    However if for any reason there is an interruption or inadequacy of supplies of regional materials, a mechanism has been built into the Origin Rules to enable a temporary derogation to be granted from the requirements to use the particular regional material.

    Under the Safeguard Mechanism, the CARICOM Secretary General is authorised by the Common Market Council in the situation described above, to permit producers to use extra-regional materials but still eligible for Common Market treatment.

    The administrative arrangements relating to the invoking by a member state of the Safeguard Mechanism involve the following steps:

    • The manufacturer, who is unable to obtain from within the Common Market supplies of any regional material required under the Origin Rules, must make application to the Competent Authority (Ministry of Industry, Investment and Commerce (MIIC)) using the prescribed form.
    • The Competent Authority after verifying the information submitted would submit the application to the CARICOM Secretary General, indicating the quantities required, product specification and the period during which the material is required.
    • The Secretary General would immediately launch investigations into the availability of the material in question from within the Common Market, circulating the request to the Competent Authorities of other member states. The Competent Authorities are required to respond within three working days to the Secretary General indicating the availability of regional supplies.
    • If the Secretary General is satisfied that the material is not available within the region, he would issue a certificate on behalf of the Common Market Council, authorizing a temporary derogation from the qualifying condition that stipulates the use of the particular material.
    • The Certificate would be issued to the Competent Authority of the member state where the producer is located, and copied to the other member states. The Competent Authority who is the recipient of the Secretary General's certificate must ensure that no more extra-regional materials are used in the production of goods claiming Common Market treatment covered by the certificate.

 

  • Last modified: June 7, 2007