Creating one African Market.

 

1.1. Background.


The 25th Ordinary Session of the Assembly of Heads of State and Government of the African Union which was held in Johannesburg, South Africa, in June 2015 launched the negotiations for the establishment of the African Continental Free Trade Area (AfCFTA). The launch of the negotiations marked a major milestone in the implementation of the Summit Decision to establish a Continental Free Trade Area by 2017. The main objective of the AfCFTA negotiations was to achieve a comprehensive and mutually beneficial trade agreement among the Member States of the African Union. The inaugural session of the AfCFTA Negotiating Forum (AfCFTA-NF) was held in February 2016. The AfCFTA-NF established Technical Working Groups (TWGs), which supported the negotiations one of which was on Rules of Origin (TWG on RoO). The AU Heads of State and Government at an Extra Ordinary Summit on 21st March 2018 in Kigali, Rwanda, signed the AfCFTA Agreement and its Protocols. Further, the AU Heads of State and Government have adopted nine (9) Annexes to the AfCFTA Protocol on Trade in Goods and the other five (5) to the Protocol on Rules and Procedures on the Settlement of Disputes at a Summit held in Nouakchott, Mauritania, on 1st – 2nd July 2018. Annex 2 to the Protocol on Trade in Goods is on the AfCFTA Rules of Origin. Annex 2 on Rules of Origin has four (4) Appendices, one of which is Appendix IV on AfCFTA Rules of Origin. This Appendix IV contains a Hybrid or General and Product Specific Rules assigned to HS Chapters, Headings and Sub-headings. Article 13 of the AfCFTA Protocol on Trade in Goods provides that Goods shall be eligible for preferential tariff treatment “if they originate in any of the State Parties in accordance with the criteria and conditions set out in Annex 2 on Rules of Origin, and in accordance with the Appendix to be developed on General and Product Specific Rules”. The determination of the eligibility of products to AfCFTA origin and the granting of preferential tariff treatment to Goods originating in the State Parties are important processes in the implementation of the AfCFTA trade regime. The implementation of the AfCFTA Rules of Origin requires State Parties to apply common procedures in determining the eligibility of products to AfCFTA origin and the granting of tariff preferences as provided for under the Agreement establishing the AfCFTA. The effective and uniform implementation of the provisions of the AfCFTA Rules of Origin by State Parties is important as it helps in strengthening the AfCFTA trade regime. 1. 2. 3. 4. 5. 6. 7.

1.2. Scope
This Manual covers the provisions governing the determination of the origin status of Goods under the Agreement establishing the AfCFTA, the administration procedures of the rules of origin and organisational requirements for implementing the rules of origin. In addition, the Manual is expected to be a useful tool for training purposes.
1.3. Purpose of the AfCFTA
Rules of Origin Manual According to Article 42.2 of the Annex 2 on Rules of Origin, Manual shall, upon his adoption by the Assembly, form an integral part of Annex 2. It will therefore have to be used in conjunction with AfCFTA legal instruments. The purpose of this Manual is to, namely: i. Simplify the AfCFTA Rules of Origin for practical application by State Parties; ii. Explain the basic origin criteria under the AfCFTA preferential trade regime; iii. Provide guidance on the origin certification procedures; iv. Provide guidance on the issuance of Proof of Origin; v. Provide guidance on origin verification; vi. Provide guidelines on the registration of exporters; vii. Give guidance on the organizational requirements for the effective implementation of the AfCFTA Rules of Origin
1.4. Product Coverage
The AfCFTA Rules of Origin Manual covers Goods that qualify for preferential tariff treatment under the AfCFTA Agreement if they originate in State Parties. This means that all Goods that meet the requirements of the AfCFTA Rules of Origin qualify for preferential tariff treatment when they are traded within the AfCFTA. However, in terms of Article7(2) of Annex2 on Rules of Origin, agricultural Products whether or not processed in any way, obtained or partially obtained from Food Aid or monetisation or similar assistance measures, including arrangements based on non-commercial terms, shall not be considered as originating and do not qualify for preferential tariff treatment under the AfCFTA Agreement.
1.5. Users
This Manual is intended for use by Designated Competent Authorities (Customs administrations, Chambers of Commerce, Export Promotion Boards etc.), government institutions, manufacturers, traders, other agencies and other stakeholders involved in intra-African continental trade

Policy Documents on The African Continental Free Trade Area - Rules of Origin Manual.

Rules of Origin Manual