Unveiled in July, a new digital trade tool, ICC Genesis, is offering a simpler and more secure way to trade within Free Trade Agreements (FTAs).
To understand the groundbreaking solution and how ICC and is facilitating trade under Free Trade Agreements, we sat down with our Origin Certification Lead Julie Sonladuangchanh as part of our ‘ICC Explained’ series providing insider insight into how our work makes a difference in the real economy.
1. How are Rules of Origin relevant to Free Trade Agreements?
A Free Trade Agreement (FTA) is a formal agreement between two or more countries or economies designed to promote trade and reduce trade barriers to imports and exports between the countries. Used at the very beginning of an international trade journey, Rules of origin are the backbone of all FTAs negotiated worldwide. They can be very complex and technical to understand for exporters and importers, especially for smaller businesses.
2. Can you give us a brief overview of ICC Genesis?
ICC Genesis is a new digital trade tool that allows chambers of commerce, members of ICC, to verify and certify preferential origin declaration made by exporters in the framework FTAs. We have ten participating chambers using the tool.
Exporters do not need to ask for a Certificate of Origin issued by their chamber of commerce and can ‘self-certify’ themselves the preferential origin of the goods they export. However, they need to refer to the FTA and check if their product can qualify for preferential treatment so that their importer can benefit from less or zero import duties, but this can be very complex and technical and lead to mistakes in the declaration.
And that’s why we believe that chambers of commerce, who have played a role in the origin field for more than 100 years, are best placed to help exporting communities, especially smaller businesses to declare the right preferential origin in an invoice declaration, and fully benefit from the advantages the FTA.
➡️ Rules of origin: A must-know for businesses looking to 🔓 trade benefits.#ICCGenesis is here for Chambers, for exporters and for you: https://t.co/e1bJJgxCqm pic.twitter.com/Tm0P3nTcdk
— International Chamber of Commerce (@iccwbo) August 23, 2024
3. Why was there a need for a tool like ICC Genesis?
We developed the tool because of the number of FTAs negotiated across the world. There are more than 400 according to the World Customs Organization (WCO) and self-certification is the most common method to declare the origin of the goods exported but mistakes and confusion has often been reported by exporters who don’t know how to use the rules of origin or how to read free trade agreements.
A recent WCO study tells us that self-certification errors and irregularities are compounded by a lack of knowledge on requirements
That’s why we are bringing ICC Genesis as a trade solution to reduce the irregularities and mistakes made by exporters when they self-certify the origin of the goods they export. It is designed to help exporters have the right declaration of origin in the statement.
ICC Genesis is part of ICC’s DNA, providing rules and standards and best practices to its members as we support them in our mission to facilitate international trade.
4. What is ICC and WCF’s role in this?
Through our World Chambers Federation (WCF) ICC has been representing, supporting and connecting chambers of commerce across the world for decades. Much of what we do is helping their business communities export and effectively navigate the global trading system.
The first certificate of origin was issued by the Vienna Chamber of Commerce in 1889 and chambers have been the trusted issuers of certificates of origin ever since.
With this long experience it makes sense today for them to guide exporters, helping them check and take full advantage of FTAs.
5. What is the evolution you’d like to see for ICC Genesis and in general for trading under FTAs?
We’d love to see exporting companies use ICC Genesis to reap the benefits and in turn see importers pay less too thanks to the accurate preferential statement on the invoice declaration. In the long term, we would ideally like to have a new module listing all FTAs across the world. We think this is something that will be useful for exporters to enable them to go into the FTAs and check the rules of origin of the products they are exporting. With more than 400 FTAs at the moment, this would be a great challenge!
Learn more about ICC Genesis and how you can contact one of the 10 issuing chambers for certificates of origin.
