RULES OF ORIGIN


THE MOST FRECUENTLY ASQUED QUESTIONS


What are the rules of origin?

These are rules that establish the minimum conditions that goods must fulfill in order to be considered "native".

What are the advantages of a product native to the Andean Community?

It is entitled to enjoy the benefits offered by the enlarged market.

What does a product made from non-Member Country materials need in order to be considered native to the Subregion?

1. It must have undergone processing to allow for its change in tariff heading;

2. The CIF value of the non-native materials must not exceed 50 percent of the FOB value of the final products in the cases of Colombia, Venezuela and Peru, and 60 percent in those of Bolivia and Ecuador.

What is needed in order for assembled goods to be considered native to the Subregion?

The CIF value of the non-native materials must not exceed 50 percent of the FOB value of the final products in the cases of Colombia, Venezuela and Peru and 60 percent in those of Bolivia and Ecuador.

In what cases are Specific Requirements of Origin (SROs) established?

When the rules of origin are insufficient or inadequate and it is necessary to adjust them to the level of development of given products, or when it is necessary to encourage technological innovations that will boost competitiveness.

Who is responsible for establishing the SROs?

The CAN General Secretariat, on its own initiative or at the request of one of the Member Countries.