The Customs Duties (Goods under the Framework Agreement on Trade Preferential System among the Member States of the Organisation of the Islamic Cooperation) Order 2023 pertains to the framework agreement on the Trade Preferential System Among the Member States of the Organisation of Islamic Cooperation (TPS-OIC).
It details the rules and regulations for determining the origin of products that are eligible for preferential concessions, such as reduced import duties, when traded among OIC member states.
In this Order—
“Contracting States” means the Member States which are parties to the Framework Agreement on Trade Preferential System Among the Member States of the Organization of the Islamic Conference as listed in Annex II Part II of the First Schedule to this Order; and
“Participating States” means the Contracting States which presented lists of products to be negotiated within the Framework Agreement on Trade Preferential System Among the Member States of the Organisation of the Islamic Conference which ratified the result of the negotiations.
The order includes:
- Rules of Origin: Criteria for determining whether a product qualifies for preferential treatment based on its origin, including provisions for products that are wholly produced or obtained, as well as those that are not wholly produced or obtained but have undergone sufficient working or processing.
- Cumulation: Guidelines on how origin can be cumulated among participating states, allowing materials from one member state to be considered originating in another member state when used to produce a final product.
- Direct Consignment: Requirements for products to be shipped directly from the exporting country to the importing country to maintain their eligibility for preferential treatment.
- Administrative Cooperation: Arrangements for mutual assistance between member states, including the verification of certificates of origin, dispute settlement, and handling of goods in transit and storage.
- Certificates of Origin: Procedures for the issuance, validation, and submission of certificates of origin, which are necessary to claim preferential treatment, as well as the preservation of supporting documents.
- Import Duty Rates: A comprehensive list of import duty rates for a wide range of products, including aluminium foil, plastics, rubber, leather, wood, paper, textile, clothing items, metal products, electrical machinery, and equipment. The rates are specified for the years 2023-2026 and vary by product and year.
- Additional Information: The Order also contains a list of contracting states of the TPS-OIC, units of measurement, abbreviations, and other relevant information related to finance and customs.
The order aims to facilitate trade among OIC member states by providing preferential tariff treatment to eligible products, thereby promoting economic cooperation and integration among the participating countries.
