prop · GG03146 · 1992-12-31 00:00:00 — "Customs value" shall be understood as meaningthe customs value as determined in accordance with the Agreement onimplementation of Artiele VII of the General on Tariffs and Tradedone at on . Note 8 - Paragraph 1 of Article 8 The facility of using, under this Protocol, the invoice asevidence of the originating status of the goods, shall be extended to thedelivery note or any other commercial document whieh describes the goodsconcerned in sufficient detail to enable them to be identified. In the case of products sent by post whieh, vithin themeaning of paragraph 2 of Article 8, are not considered as importations by vayof trade, the declaration of the originating status can also be made on thecustoms declaration C2/CP3 or on a sheet of paper annexed to that declaration. Note 9 - Paragraph 1 of Article 17 and Article 22 Where an EUR.l certificate has been issued under theconditions laid down in paragraph 3 of Artiele 9 and relätes to goods re-exported in thesame state, the customs authorities of the country of destination must be ableto obtain, by means of administrative co-operation, true copies of the evidenceof origin issued or made out previously relating to those goods. Note 10 - Artiele 23 "Drawback of customs duty or exemption from customsduty of whatever kind" shall mean any arrangement for refund or remlssion,partial or complete, of customs duties applicable to products used inmanufacture, provided that the said provision concedes, expressly or in effect,this repayment or non-eharging or the non-imposition when goods obtained fromthe said products are exported but not when they are retained for home use. "Products used in manufacture" shall mean anyproducts in respect of which a "drawback of customs duty or exemption fromcustoms duty of whatever kind" is requested as a result of the export oforiginating products for which an EUR.l certificate, an LT certificate or theinvoices referring to the LT certificate, or an invoice bearing the exporter'sdeclaration are issued or made out. Prop.1992/93:146 to Protocol B List of working or processing required to be carried outon non-originating naterials in order that the product manufactured can obtain originating status 1.1 The first two columns in the List describe the product obtained. The first column gives the heading number, or the Chapter number, used in the and the second column gives the description of goods used in that System for that heading or Chapter. For each entry in the first two columns a rule is specified in columns 3 and 4. Where, in some cases, the entry in the firstcolumn is preceded by an "ex", this signifies that the rule in column3 or column 4 only applies to the part of that heading or Chapter as describedin column 2. 1.2Whereseveral heading numbers are grouped together in column 1 or a Chapter number isgiven and the description of product in column 2 is therefore given in generaltems, the adjacent rule in column 3 or column 4 applies to all products which,under the , are dassified within headings of the Chapter orvithin any of the headings grouped together in column 1. 1.3Wherethere are different rules in the List applying to different products vithin aheading, each indent contains the description of that part of the headingcovered by the adjacent rule in column 3 or column 4. 1.4For theproducts of Chapters 84 to 91 inclusive, if no origin rule is given in column4, the rule set out in column 3 has to be applied. 2.1 The tern "manufacture" covers any kind ofvorking or processing including "assembly" or specific operations. However, see paragraph 5 of Note 3 below. 1992/93:146 to Protocol B 2.2The term"material" covers any "ingredient", "rawmaterial", "component" or "part", etc, used in themanufacture of the product. 2.3The term"product" refers to the product being nanufactured, even if it isintended for later use in another manufacturing operation. 3.1In thecase of any heading not in the List or any part of a heading that is not in theList, the "change of heading" rule set out in paragraph 2 of Article5 applies. If a "change of heading" condition applies to any entryin the List, then it is contained in the rule in column 3. 3.2Theworking or processing required by a rule in column 3 or column 4 has to becarried out only in relation to the non-originating materials used. Therestrictions contained in a rule in column 3 or column 4 likewise apply only tothe non-originating materials used. 3.3Where arule states that "materials of any heading" may be used, materials ofthe same heading as the product may also be used, subject, however, to anyspecific limitations which may also be contained in the rule. However, theexpression "manufacture from materials of any heading including othermaterials of heading No..." means that only naterials classified withinthe same heading as the product of a different description than that of theproduct as given in column 2 of the List may be used. 3.4If aproduct, made from non-originating materials which has acquired originatingstatus during manufacture by virtue of the change of heading rule or its ownList rule, is used as a material in the process of manufacture of anotherproduct, then the rule applicable to the product in which it is incorporateddoes not apply to it. 1992/93:146 to Protocol B - For example: An engine of heading No. 84 07, for which the rule statesthat the value of the non-originating naterials whieh nay be incorporated naynot exceed of the ex-vorks price, is nade frön "other alloy steel roughlyshaped by forging" of heading No. lf this forging has been forged in the country concernedfrom a non-originating Ingot then the forging has already acquired Origin byvirtue of the rule for heading No. ex 7224 in the List. It can then count asoriginating in the value ealculation for the engine regardless of vhether itvas produced in the same factory or another. The value of the non-originatingingot is thus not taken into account when adding up the value of thenon-originating materials used. 3.5 Even if the change of heading rule or the rulecontained in the List are satisfied, a product does not have origin if theprocessing carried out, taken as a whole, is insufficient in the sense ofparagraph 5 of Article 5. 4.1The rulein the List represents the minimum amount of working or processing required andthe carrying out of more working or processing also confers originating status;conversely, the carrying out of less working or processing cannot conferorigin. Thus if a rule says that non-originating material at a certain levelof manufacture may be used, the use of such material at an earlier stage ofmanufacture is allowed and the use of such material at a later stage is not. 4.2When arule in the List speeifies that a product may be manufactured from more thanone material, this means that any one or more of the materials may be used. Itdoes not require that all be used. Prop.1992/93:146 to Protocol B The rule for fabrics says that natural fibres may be used and that chemical naterials, anong other naterials, nay also This does not mean that both have to be used, one can use one or the other or If, however, a restriction applies to one material andother restrictions apply to other naterials in the same rule, then therestrifctions only apply to the materials actually used. The rule for sewing speeifies that the threadtension mechanism used has to originate and that the zigzag mechanism used alsohas to originate; these two restrictions only apply if the mechanisms concernedare actually incorporated into the sewing . 4.3 When a rule in the List speeifies that a product mustbe manufactured from a particular material, the condition obviously does notprevent the use of other materials which, because of their inherent nature,cannot satisfy the rule. The rule for heading No. specifically excludes the use of cereals or their derivatives does not prevent the use of salts, chemicals and other additives which are not produced from In the case of an artiele nade from non-voven materials,if the use of only non-originating yarn is allowed for this dass of artiele, itis not possible to start from non-woven cloth - even if non-wovens cannotnormally be made from yarn. In such cases, the starting material vouldnormally be at the stage before yarn - that is the fibre stage. See also paragraph 3 of Note 7 in relation to textiles. 1992/93:146 to Protocol B 4.4 If in a rule in the List tvo or more pereentages aregiven for the maximum value of non-originating materials that can be used, thenthese pereentages may not be added together. The maximum value of all the non-originating materials usedmay never exceed the highest of the pereentages given. Furthermore theindividual pereentages nust not be exceeded in relation to the particularnaterials they apply to. 5.1The term"natural fibres" is used in the List to refer to fibres other thanartificial or synthetic fibres and is restricted to the stages before spinningtakes place, including waste and unless otherwise specified, the term"natural fibres" includes fibres that have been carded, eombed orotherwise processed but not spun. 5.2The term"natural fibres" indudes horsehair of heading No. 0503, silk ofheadings Nos. 5002 and 5003 as well as the wool fibres, fine or eoarse animalhair of headings Nos. 5101 to 5105, the cotton fibres of headings Nos. 5201 to5203 and the other vegetable fibres of headings Nos. 5301 to 5305. 5.3Theterms "textile pulp", "chemical naterials" and "paper-makingmaterials" are used in the List to describe the materials not classifiedwithin Chapters 50 to 63 whieh can be used to manufacture artificial, syntheticor paper fibres or yarns. 5.4The term"man-made staple fibres" is used in the List to refer to synthetic orartificial filament tow, staple fibres or waste, of headings Nos. 5501 to 5507. 14 1992/93. Prop.1992/93:146 to Protocol B 6.1In thecase of the products classified within those headings in the List where areference is made to this Introduetory Note, the conditions set out in column 3of the List shall not be applied to any basic textile materials used in theirmanufacture whieh, taken together, represent or less of the total weightof all the basic textile materials used (but see also paragraph 3 and 4 of Note6 below). 6.2However,this tolerance may only be applied to mixed products whieh have been made fromtwo or more basic textile naterials, irrespective of their share of theproduct. The following are the basic textile materials: silk, wool, eoarse animal hair, fine animal hair, horsehair, cotton, paper-making materials and paper, flax, jute and other textile bast fibres, sisal and othertextile fibres of the genus Agave, coconut, abaea, ramie and other vegetable textile fibres,synthetic man-made filaments, artificial man-made filaments, synthetic man-madestaple fibres, artificial man-made staple fibres. A yarn of heading No. 5205 made from cotton fibres andsynthetic staple fibres is a nixed yarn. Therefore, non-originating naterialsthat do not satisfy the origin rules may be used up to a weight of 10 t of theyarn. A woollen fabrie of heading No. 5112 made from woollenyarn and synthetic yarn of staple fibres is a mixed fabrie. Therefore, eithernon-originating synthetic yarn or woollen yarn or a combination thereof thatdoes not satisfy the origin rules may be used up to a weight of of thefabrie Prop.1992/93:146 to Protocol B Tufted textile of heading No. 5802 made from cotton yarnand cotton fabrie is only a mixed product if the cotton fabrie is itself amixed fabrie being nade frön two or more different basic textile naterials or lf the cotton yarnsused are thenselves mixtures. - For example: If the tufted textile concerned had been made from cottonyarn and synthetic fabrie, then, obviously, two separate basic textilematerials would have been used. A carpet with tufts made both from artificial yarns andtufts made from cotton yarns and with a jute backing is a mixed product becausethree basic textile materials are used. Thus, any non-originating materialsthat are used at a later stage of nanufacture than the rule allows, may beused, provided their total weight taken together does not exceed of theweight of the textile materials in the carpet. Thus, the jute backing, theartificial yarns and/or the cotton yarns could be imported at that stage ofmanufacture, provided the weight conditions are net. 6.3In thecase of products incorporating "yarn nade of polyurethane segmented withflexible segments of polyether whether or not gimped" this tolerance is in respect of this yarn. 6.4In thecase of products incorporating strip consisting of a core of aluminium foil orof a core of plastic film whether or not coated with aluminium powder, of awidth not exceeding ., sandwiched by means of an adhesive between two filmsof plastic film, this tolerance is in respect of this strip. 1992/93:146 to Protocol B 7.1 In the case of those textile products, which aremarked in the List by a footnote referring to this Introduetory Note, textilematerials, vith the exception of linings and interlinings, vhich do not satisfythe rule set out in the List in column 3 for the made-up product concerned naybe used provided that they are classified in a heading other than that of theproduct and that their value does not exceed of the ex-vorks price of theproduct. 7.2Anynon-textile trimmings and accessories or other materials used vhich containtextiles do not have to satisfy the conditions set out in column 3 even thoughthey fall outside the scope of paragraph 3 of Note 4. 7.3Inaccordance vith paragraph 3 of Note 4, any non-originating non-textiletrimmings and accessories or other product, vhich do not contain any textiles,may, anyway, be used freely where they cannot be made from the materials listedin column 3. If a rule in the List says that for a particular textileitem, such as a blouse, yarn must be used, this does not prevent the use ofmetal items, sueh as buttons, because they cannot be made from textilematerials. 7.4 Where a percentage rule applies, the value of trimmings and accessories must be taken into account when calculating the value of the non- originating materials incorporated. 1992/93:146Annex II to Protocol B Fish,other than live fish Buttermilk,curdled milk and cream, yogurt, kephir and other fermented or acidified milkand cream, flavoured or containing added fruit, nuts or cocoa Working or processingcarried out on Manufacturein which all the matehals of Chapter 3 used must already be originating -all the materials of Chapter 4used must be obtained -any fruit juice (except thoseof pineapple, lime or grapefruit) of heading No. 20.09 used must already beoriginating, and -the value of any materials ofChapter 17 used does not exceed of the ex-works price of the product ex13.02 Mucilages and thickeners derived from vegetable products, modified Manufacture from non-modified mucilages and thickeners 16.4Prepared or preserved fish;eaviar and eaviar substitutes prepared from fish eggs 16.5Crustaceans, molluscs and otheraquatic invertebrates, prepared or preserved ex17.02 Chemically pure fructose and maltose Manufacture in which thevalue of all the materials used does not exceed of the ex-works price ofthe product Manufacture in which thevalue of all the materials used does not exceed of the ex-works price ofthe product Manufacturefrom materials of any heading including other materials of heading No. Prop.1992/93:146 toProtocol B Workingor processing carried out on 17.04 confectionery (including white chocolate), notcontaining cocoa 18.06 Chocolate and other food preparationscontaining cocoa Manufacturein which all the materials used are classified in a heading other than that ofthe product, provided the value of any other materials of Chapter 17 used doesnot exceed of the ex-works price of the product Manufacture in which all the materials used are classifiedin a heading other than that of the product, provided the value of anymaterials of Chapter 17 used does not exceed of the ex-works price of theproduct 19.01 Malt extract; food preparations of flour, meal,starch or malt extract, not containing cocoa powder or containing cocoa powderin a proportion by weight of less than , not elsewhere specified orincluded; food preparations of goods of headings Nos. 04.01 to 04.04, notcontaining cocoa powder or containing cocoa powder in a proportion by weight ofless than , not elsewhere specified or included: Manufacture from cereals of Chapter 10 Manufacturein which all the materials used are classified in a heading other than that ofthe product, provided the value of any materials of Chapter 17 used does notexceed of the ex-works price of the product Prop.1992/93:146 to Protocol B (1) ex 19.02 Pasta, whether or not cooked or stuffed (with meat orother substances) or otherwise prepared, such as spaghetti, macaroni, noodles,lasagne, gnocchi, ravioli, cannelloni - except for those containing more than20% by weight of crustaceans, molluscs or other aquatic invertebrates, sausagesand the like or meat and meat offal of any kind, including fats of any kind ororigin; couscous, whether or not prepared Working or processing carried out on Manufacture in which all the cereals and derivatives(except durum wheat and its derivatives) used must be obtained 19.03 Tapioca and substitutes therefor prepared fromstarch, in the form of flakes, grains, pearls, siftings or in similar forms Manufacturefrom materials of any heading except potato starch of heading No. 19.04 Prepared foods obtained by the swelling or roastingof cereals or cereal products (for example, com flakes); cereals, other thanmaize (com), in grain form, pre-cooked or otherwise prepared: -Notcontaining cocoa: -Cereals,other than maize (com), in grain form, pre-cooked or otherwise prepared Manufacture from materials of any heading. However, grainsand cobs of sweet com, prepared or preserved, of headings Nos. 20.01, 20.04 and20.05 and uncooked, boiled or steamed sweet com, frozen, of heading No. 07.10,may not be used Manufacture in which: Prop.1992/93:146 to Protocol B Bread, pastry, cakes, biscuits and other bakers' wares,whether or not containing cocoa; communion wafers, empty cachets of a kindsuitable for pharmaceutical use, sealing wafers, rice paper and similarproducts Workingor processing carried out on -all thecereals and their derivatives (except maize of the species *indurata' anddurum wheat and their derivatives) used must be obtained, and -the value ofany materials of Chapter 17 used does not exceed of the ex-works price ofthe product Manufacture from materials not classified within headingNo. 18.06, provided the value of any materials of Chapter 17 used does notexceed of the ex-works price of the product Manufacture from materials of any heading, except those ofChapter 11 ex 21.03 Sauces and preparations therefor; mixedcondiments and mixed seasonings Manufacturein which all the materials used are classified in a heading other than that ofthe product. However, mustard flour or meal or prepared mustard may be used ex 21.04 Soups and broths and preparations therefor Manufacturefrom materials of any heading, except prepared or preserved vegetables ofheadings Nos. 1 However,until , maizeJU>ur ('masa' flour), obtained by the'nixtamalizaiion" method(alcaline cooking and steeping), may be used Prop.1992/93:146 to Protocol B Waters, inclijding waters and aerated waters, andother non-alcoholic beverages, not including fruit or vegetable juices ofheading No. 20.09; containing sugar or milk or milkfats and other wine of fresh grapes flavoured withplants or aromatic substances Workingor processing carried out on Manufacture in which: - all the materials used are classified in a heading other than that of the product, the value of any materials of Chapter 17 used does notexceed of the ex-works price of the product, and - any fruit juice used (except for pineapple, lime and grapefruit juices) must already be originating Manufacture in which all the grapes or any materialderived froin grapes used must be obtained Liqueursand other spirituous beverages containing added sucrose, invert sugar, eggs oregg yolks Natura] crystalline graphite, with enriched outon content,purified and ground Marble, merely cut by sawing or otherwise into blocks orslabs of a rectangular (including square) shape, of a thickness not exceeding25 cm all the materials used are classified within a headingother than that of the product, and - all the grapes or any material derived from grapes used must be obtained - if all the other materials used are already originating, arrack may be used up to a limit of by volume Enriching of the carbon content, purifying and grinding ofcrude crystalline graphite Cutting, by sawing or otherwise, of marble (even ifalready sawn) of a thickness exceeding Prop.1992/93:146 to Protocol B (1) ex 25.16 Granite, porphyry, basalt, sand-stone and other monumentaland stone, merely cut by sawing or otherwise, into blocks or slabs ofa rectangular (including square) shape, of a thickness not exceeding ex 25.18 ex 25.19 Crushed natural magnesium carbonate (magnesite), inher-metically sealed containers, and magnesium oxide, whether or not pure,other than fused magnesia or dead bumed (sintered) magnesia Plasters specially prepared for dentistry ex 25.24 Natural asbestos fibres ex 25.30 Earth colours, calcined or powdered ex 27.07 Oils in which the weight of the aromaticeonstituents exceeds that of the non-aromatic eonstituents, being oils similarto oils obtained by distillation of high temperature coal tar, of whichmore than by volume distils at a temperature of up to C (includingmixtures of spirit and t>enzole), for use as power or heatingfuels Working or processing carried out on non-originating materials that confers Cutting, by sawing or otherwise, of stones (even ifalready sawn) of a thickness exceeding Calcination of dolomite not calcined Manufacture in which all the materials used are classifiedin a heading other than that of the product. However, natural magnesiumcarbonate (magnesite) may be used Manufacture in which the value of all the materials useddoes not exceed of the ex-works price of the product Manufacture from asbestos concentrate Grinding of mica or mica waste Calcination or grinding of earth colours Manufacture from materials of any heading Prop.1992/93:146 to Protocol B ex 27.12 ex 27.12 ex 27.12 oils and oils obtained from bituminous ,other than crude; preparations not elsewhere specified or included, containingby weight or more of oils or of oils obtained from bituminousminerals, these oils being the basic eonstituents of the preparations Microcrystalline wax, slack wax, purifiedozokerite, lignite wax, peat wax, other waxes, and similar productsobtained by synthesis or by other processes, whether or not coloured Inorganic chemicals; organic or inorganic compounds ofprecious metals, of rare earth metals, of radioactive elements or of isotopes;except for headings ex 28.11, ex 28.33 and ex 28.40 for which ihe rules are setout below ex 28.11 ex 28.33 Sulphur trioxide Aluminium sulphate ex 28.40 Sodium perborate Workingor processing carried out on rum-originating materials that confers Manufacture from materials of any heading Manufacture from slack wax or scale wax Manufacture from crude ozokerite Manufacture in which all the materials used are classifiedin a heading other than that of the product. However, materials classified inthe same heading may be used provided their value does not exceed of theex-works price of the product Manufacture from sulphur dioxide Manufacture in which the value of all the materials useddoes not exceed of the ex-works price of the product Manufacture from disodium tetraborate pentahydrate Prop.1992/93:146 to Protocol B (1) ex Ch. Organic chemicals, except for headings Nos. ex 29.05,29.15, ex 29.32, 29.33 and 29.34, for which the rules are set out below