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Simulation Exercise for Purposes of NTMs Identification, Classification and Notification

Simulation Exercise for Purposes of NTMs Identification, Classification and Notification. Paolo R. Vergano Institutional Strengthening Expert, ARISE Two-Day National Workshop 20-21 October 2014 Vientiane, Laos PDR. Introduction.

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Simulation Exercise for Purposes of NTMs Identification, Classification and Notification

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  1. Simulation Exercise for Purposes ofNTMs Identification, Classification and Notification Paolo R. Vergano Institutional Strengthening Expert, ARISE Two-Day National Workshop 20-21 October 2014 Vientiane, Laos PDR

  2. Introduction • The evaluation of NTMs is the critical step to be undertaken by national authorities. • Three-pronged approach with respect to NTMs: • The identification of the trade relation and relevance; • The classification of the measure; and • Its notification to the ASEC for insertion on the NTM Database and its reflection on the NTR/ATR.

  3. Proposed NTM Classification Template

  4. Example No. 1 Circular Letter of the Director General of Livestock Services to Provincial/District Livestock Services, Importers, Centre of Agriculture Quarantine, dated 23 February 2001. On 23 February 2001, following the sudden outbreak of Foot and Mouth Disease in Country A on 20 February 2001, Country B prohibited the importation of live animals and animal products of ruminant and pig origin from Country A. The measure applied immediately.

  5. Example No. 2 Notice on the rules of origin of products from Country A, published on 23 July 2013. In order to be classified as products from Country A under the “Tax-Free Program between Country B and Country A” and to guarantee that preferential treatment is not manipulated, all goods classified under Chapter 50 of the Customs Code shall be consigned directly from Country A, without stopping at any third country unless there is a valid emergency.

  6. Example No. 3 Article 2, Circular No. 42, Ministry of Finance, signed on 18 March 2009. In an attempt to increase the domestic textile industry in Country A, the government adopted a measure requiring a specific local content requirement for clothing products. In Country A, manufacturers of textile products that source at least 60% of their inputs locally are entitled to a one-year value-added tax (VAT) exemption.

  7. Example No. 4 Article 4 of Standards and Technical regulation Law No. 1/1111/Q11, published on 12 February 2013. In an effort to protect the inhabitants of Country A, exporting countries that have not proven to employ satisfactory sanitary conditions cannot be certified by Country A. The importation of fruits from countries that are not on the certified list are temporarily prohibited until the sanitary conditions are met.

  8. Example No. 5 Article 28 of the Alcohol Law of Country A, adopted 12 June 1999. Country A consists of a 90% Muslim population, and it is an offence to offer alcohol to Muslims. Selling alcohol is not allowed except to non-Muslims in hotels and restaurants, which are certified by the Government of Country A. Foreigners are only allowed to purchase alcohol by showing their passports.

  9. Example No. 6 Regulation 31, PART II: Additional labelling requirements for certain categories of food, The 1996 Food Labelling Regulation, adopted on 14 March 1996. To ensure that consumers are fully aware of relevant food product information, Country A adopted a labelling regulation that applies to raw milk. In particular, the container in which any raw milk is sold or imported shall be marked or labelled with the words, “This milk has not been heat-treated and may therefore contain organisms harmful to health”.

  10. Example No. 7 Notice No. 17, Ministry of Industry and Trade, circulated on 16 January 2012. As part of its periodic review of the Customs Code, Country A introduced a $133/tonne “advance guarantee payment” for rebar imports to the country for a temporary period of 200 days. No interest is to be paid on the deposits and it appears that the measure has been introduced in order to ensure effective importation within the available tariff-rate quota (TRQ), appropriate collection of customs duties and correct supply of the market.

  11. Example No. 8 Article 9, Agriculture Standard, GSO 05/CD 986:2014, signed on 9 April 2014. Based on available scientific information, Country A recently passed a measure to ensure proper storage and quality for food items. In particular, Article 9 of the new Agriculture Standard requires that frozen chicken be displayed in proper freezers that allow cool air to pass regularly to all parts of the frozen chicken at a maximum temperature of -18˚C.

  12. Example No. 9 Article 13 of the Tax Law, signed on 17 August 2012. All products sold in Country A are subject to a value-added tax (VAT) of 14%. The VAT applies to all importers, manufacturers and sellers of products in Country A. The costs are typically passed on to consumers.

  13. Example No. 10 County A Regulation No. 649/2012, adopted on 13 May 2012. In order to protect the inhabitants of Country A from the adverse effects of hazardous wastes, imports of certain hazardous chemicals and pesticides are prohibited in Country A, as prescribed by the Basel Convention.

  14. Example No. 11 Ministry of Commerce and Industry, Notification No. 12 (RE-2013)/2009-2014, signed on 2 February 2009. Areca nuts were recently found to be dangerous when ingested by humans. Shortly after, the Ministry of Commerce and Industry in Country A increased the minimum Cost in Freight (CIF) value for imports of areca nuts from $1/kg to $2/kg. Imports with CIF value lower than $2/kg are not allowed.

  15. Example No. 12 Article 2, Sulphur in Gasoline Regulations (SOR/99-236), signed on 12 March 2004. To limit the presence of sulphur in the environment, Country A passed a measure limiting the concentration of sulphur in each batch of gasoline produced or imported by a primary supplier. As of 1 January 2005, the maximum level of sulphur allowed in each batch of gasoline is 80 mg/kg.

  16. Example No. 13 Foreign Trade Council Resolution No. 4, published in the Official Gazette on 31 January 2014. In order to balance the domestic market of basic chemicals, the Foreign Trade Council of Country A implemented a tariff-rate quota (TRQ) on the importation of o-Xylene (NCM 2902.41.00) with an in-quota tariff of 0% for 10,200 tons within a 6-month period. The out-of-quota rate is 4%.

  17. Example No. 14 State Council Decree No. 98, signed on 13 June 2011. To address a domestic shortage of wheat and flour, Country A temporarily prohibited the export of those products. According to a 2011 State Council Degree, all exports of wheat and flour were prohibited from 1 July 2011 to 31 December 2011.

  18. Example No. 15 Article 13, Textile Labelling and Advertising Regulation, signed on 17 June 2013. In order to protect consumers from false or misleading information, every fibre that is present in an amount of 5% or more by mass in a piece of clothing must be declared on the label using its generic name. A list of generic names is provided in the text of the regulation.

  19. Example No. 16 Ministry of Commerce Announcement No. 15, dated 23 January 2014. The harvest season for cherries is from March to July. During this period, domestic supply is sufficient for the market. In order to avoid the oversupply of cherries, imports of cherries are prohibited in Country A from 1 March to 31 July each year.

  20. Example No. 17 Article 78, Packaging (Essential Requirements) Regulation, signed on 27 November 2001. Packaging shall be designed, produced and commercialised in such a way as to permit its reuse or recovery, including recycling, and to minimise its impact on the environment when packaging waste or residues from packaging waste management operations are disposed of.

  21. Example No. 18 Public Law No. 110-314, Section 3, 122 Statute 3016, 3017 (2008); 15 Government Code 14, adopted on 12 March 2008. Manufacturers and importers of children’s toys must certify, in a written Children’s Product Certificate (CPC) based on test results from a CPSC-accepted laboratory, that their products for children comply with safety rules applicable to products for children.

  22. Example No. 19 Annex 3, Announcement No. 15, Recognition of certain geographical indications, Bureau of Intellectual Property Right, signed on 30 November 1995. Sparkling white wine from the Champagne region of France has a reputation for higher quality than similar wine using grapes produced in other parts of the world. Champagne can only be labelled as such in Country A if it is produced from grapes grown in the Champagne region of France following rules that demand secondary bottle fermentation of the wine to create carbonation.

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