Without the Rules of Origin ROO it will be difficult to Decide whether imported products shall recei...........

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Without the Rules of Origin (ROO), it will be difficult to

Decide whether imported products shall receive preferential treatment for tariffs
Implement anti-dumping duties and safeguard measures with regards to certain products

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

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Explanation:

Rules of Origin (ROO) are the criteria needed to determine the identity of a product for purposes of international trade. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports. Rules of origin are used:

to implement measures and instruments of commercial policy such as antidumping duties and safeguard measures;
to determine whether imported products shall receive most-favoured-nation (MFN) treatment or preferential treatment;
for the purpose of trade statistics;
for the application of labelling and marking requirements; and for government procurement.

The Rules of Origin are important in the context of making an assessment on the application of preferential tariff under an FTA. Hence, without the rules of origin, the preferential tariffs under an FTA cannot be implemented. Moreover, the non-members to the FTA are not provided with the benefit of the preferential tariffs, agreed between the FTA partners.