ECJ: EC has exceeded its powers when adopting delegated legislation concerning non-preferential rules of origin

• The European Court of Justice (ECJ) has ruled that the “Change of Tariff Heading” rule for determining the non-preferential origin of goods imported into the EU is invalid.
• This case is significant because it clarifies the rules for determining the origin of goods and highlights the ECJ’s willingness to invalidate delegated legislation.
• Non-preferential rules of origin are used to determine the country of origin for products and apply to measures such as anti-dumping duties and trade embargoes.
• The ECJ found that the EC’s rule was contradictory and discriminatory, and that the EC had exceeded its powers in adopting it.
• This ruling suggests that the rules for determining origin may not be as legally binding as previously thought.

Source Baker & McKenzie

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