GSP.
9
Countries to take goods from North Korea apply ‘non-preferential rules of origin’
to deine the origin of goods. So, reviewing the rules of origin of main three countries is
meaningful in that this process enables us to understand the logic to accept products
made in Kaesong as originating from South Korean is material.
a. United States
United States adopted origin rules of Kyoto Convention as basic regulations.
In more detail, agricultural and marine products are adjudged by wholly produced
or obtained originally, and the others by substantial changes of HS
10
. For example, according to the precedents to analyze
substantial change, the concept is deined that inished products HS items code is
modiied from input materials’ code in the process of manufacturing. Namely,
in a country a company uses imported materials- plastic and glass-to make goods,
the materials should be transformed into new products such as TV, computer, etc.
and then the inished products have new HS item code. The distinct standard of HS
item code rests with the uses and the code of inished products, entirely different from
transformed from the materials imported
and used. and it depends on whether in a
country, items imported are only packed and assembled or otherwise, materials are
transformed into new products through a working process. However, according
to diverse rules and policies, US customs service agency adjudges, on a case-by-
case basis, origins by where products are imported from. Besides, the United States
has made extensive use of country-speciic tarif preference programs to encourage
economic growth in developing countries. However, the preferential program has not
been applied to the products originating from North Korea. It is because North Korea
has been recognized as the country that has a communist regime with the nuclear
weapons. For instance, a woman’s cotton suit H.S. code 6204.12.00 from North Korea
currently is assessed a U.S. tarif of 14.9 while the tarif on a comparable item from
North Korea is 90. If the FTA between South Korea and U.S. takes effect, the tarif
of the product originating from South Korea will be eliminated, but the product from
North Korea will still remain under 90 of tarif rates.
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b. European Union
The EU’s rules of origins categorize into two ways: non-preferential and
preferential rules of origin. The former is based on Commission Regulation No.
245493 2 July 1993 laying down provisions for
the implementation
of Council
Regulation EEC No 291392 establishing the Community Customs Code. The EU’s
rules have very complicated standards that include processing tests, value-added tests
and change in tarif classiication. Moreover, EU applies different rules to products
imported according to trading partners.
12
It
9
The Generalized System of Preferences GSP provides preferential tarif treatment to products imported from developing countries.
10
Harmonized Commodity Description and Coding System.
11
See Dick K. Nanto and Mark E. Manyin, supra note, p. 2.
12
The EU also applies very detailed rules of origin to several products categories: textiles, clothes, meat, grape, juice, wine, vermouth, leather clothes, shoes, ball bearings, tape-records, magnetic discs, television sets, inte-
grated circuits, copier machines, watch bands, and ceramic articles.
can be recognized that the partners have trade barriers to enter into the EU market. The
latter is related with chapter 2 Preferential Origin of Regulation No. 245493. The EU
applies GSP to separate regional groups. The beneiciary groups include the Association
of South-East Asian Nations ASEAN,
the Central American Common Market CACM, and Andean Group.
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c. Japan
Japan has more comparatively dei- nite rules of origin to apply to imported
products. Basically wholly produced tests, and substantial standard are fundamental
standards. Substantial standards include change in tarif classiication and processing
tests. Change in tarif classiication means that in terms of 4-digit code product categories,
4-digit code of a inished product is not identiied with the 4-digit code of sources
imported from other countries that were used in manufacturing the inished product.
In addition, special products such as several
textiles, chemicals, metals and jewels are determined by applying to processing tests
and their origins are conferred as domestic products, in the case of using non-origin
materials or non–changeable products of 4- digit code.
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d. The Necessity of Acceptance of
