G/RO/W/209  
 
4 October 2021  
(21-7399) Page: 1/16 
Committee on Rules of Origin  Original: English  
 
 
FURTHER SUBMISSION ON RULES OF ORIGIN BASED ON A CHANGE OF TARIFF 
CLASSIFICATION – THE CASE OF RULES OF ORIGIN USED BY JAPAN  
The following submission, dated 1 October 2021, is being circulated at the request of the delegation 
of Tanzania on behalf of the LDC Group.  
 
_______________  
 
 
1.1.  It is recalled that the LDC submitted a previous submission on change of tariff classification in 
May 20191. The submission recalled that Paragraph 1.2 of the Nairobi Decision  provides as follows:  
1.2 When applying a change of tariff classification criterion to determine substantial 
transformation, Preference -granting Members shall:  
a)  As a general principle, allow for a simple change of tariff heading or change of tariff 
sub-heading.  
b)  Eliminat e all exclusions or restrictions to change of tariff classification rules, except 
where the Preference -granting Member deems that such exclusions or restrictions are 
needed, including to ensure that a substantial transformation occurs.  
c)  Introduce, where appropriate, a tolerance allowance so that inputs from the same 
heading or sub -heading may be used.  
1.2.  According to such paragraph the general principle for applying a CTC is a change of tariff 
heading (CTH) or a change of tariff subheading (CTSH).  
1.3.  The second subparagraph (b) calls for an elimination of all exclusions or restrictions on such 
general principle of applying CTH or CTSH as general rules " except where the Preference -granting 
Member deems that such exclusions or restrictions are n eeded, including to ensure that a substantial 
transformation occurs. "  
1.4.  In addition, Paragraph 1.4  covers situations where combinations of two requirements have to 
be complied with to obtain originating status.  
1.4. Preference -granting Members shall, to th e extent possible, avoid requirements which 
impose a combination of two or more criteria for the same product. If a Preference -granting 
Member still requires maintaining a combination of two or more criteria for the same product, 
that Preference -granting M ember remains open to consider relaxing such requirements for 
that specific product upon due request by an LDC . 
1.5.  The former submission contained an extensive Annex I, concerning both the EU ; Japan; 
Switzerland; and Norway  that extensively use a combination of CTC with other requirements.  
 
1 See document G/RO/W/184 dated 7 May 2019.  G/RO/W/209  
 
- 2 - 
 
  1.6.   The result of the analysis in Annex I carried out in the above -mentioned submission concluded 
as follows:  
“The issues to be considered to bring into conformity with the Paragraph 1.2 and 1.4 of the 
Nairobi decisions the c urrent use of the CTC criterion by the CTC group are threefold:  
a)  The exceptions to the general rules of CTH and CTSH are the norm rather than the 
exception for the CTC group. For instance, the rules of origin of Japan provides for CTH 
as a general rule, however there are 26 pages of exceptions to such general rule 
cover ing the majority of the HS chapters and at time entire HS chapters.  
b)  The exceptions to the general rules are by far much stricter than the general rules going 
beyond any conceivable requirement for substantial transformation and as such they 
are not ju stifiable.  
c)  In some cases, the same preference giving countries have adopted more lenient rules 
of origin for the same products under FTAs that they have negotiated with other partners 
and/or there are existing best practices under other FTAs on how su bstantial 
transformation could be achieved adopting less stringent requirements”  
1.7.  Following the submission and the debate at the CRO meeting of May 2019 it was agreed that 
further consultations were necessary at bilateral level.  
1.8.  Such bilateral consultation  took place with Japan in 2019. However, at present,  it has to be 
noted that conclusive responses to the detailed queries raised in the submission and reiterated by 
the LDC WTO group during the bilateral consultations with Japan have yet to be addressed . 
1.9.  Annex I of this submission takes the point from where it has been left and it brings it forward.  
1.10.   The LDCs acknowledge that URs under the GSP are relatively in the high rang e above 80 % in 
the last decade while the trade volume in terms of imports from LDC ha s basically remained 
unaltered when external shocks are taken into account. However, as shown in the Annex, while 
utilization rates may be relatively high at general level , there are consistent pockets of 
underutilization that may be caused by stringent pr oduct specific rules of origin and/or related 
administrative requirements like documentary evidence of direct shipment.  
1.11.   In addition,  utilization rates are one the benchmarks that may be used in assessing the 
adequacy of rules of origin to LDC needs , but no t the only one. As stated in a n earlier submission 
by the LDC group2, rules of origin for LDCs should be development -oriented and contribut e to 
creating trade and investment opportunities for LDCs to build productive capacities and insertion in 
value chai ns. There are examples of such possibilities contained in the above mentioned LDC 
submission.  
1.12.   As it is the understanding of the LDC group that Japan may be considering the revision of 
Japanese rules of origin under the periodical review of the Japanese sch eme during 2021 it is hoped 
that this submission may be considered as a valuable input for such review. The tables in Annex I 
are by no mean s exhaustive and complete and the LDC WTO group could  refine this data and analysis  
in the future . The table has bee n assembled to start a constructive debate.  
1.13.   It should  also be noted that in the case of African LDCs there are no  parallel o r overlapping 
trade preferences besides the GSP. In the case of ASEAN LDCs,  the ASEAN -Japan FTA provides 
alternative preferences that may be available to ASEAN LDCs.  However preliminary analysis that will 
be shown at the next session of the Committee on rules of origin shows that utilization rates under 
such FTA are rather low an d that RoO are stringent.  
1.14.   Such table outlines a number of examples where Japan is invited to introduce reforms to bring 
GSP rules of origin in conformity with the relevant paragraphs of the Nairobi decision.  
 
2 Challenges Faced by LDCs in Complying with Preferential Rules of Origin Under Unilateral Preference 
Schemes. Paper presented by Uganda on Behalf of the LDC Group, document G/RO/W/148 of 28 October 2014.  G/RO/W/209  
 
- 3 - 
 
  1.15.   As outlined in a recent submission by the LDC WT O group3 more than five years have now 
passed from the adoption of the Nairobi Decision on preferential rules of origin for LDCs. 
Some  progress has been recorded in achieving better transparency through the adoption of a 
notification template and the noti fication of the utilization rates of the Duty Free and Quote Free 
schemes. However, there has not been parallel progress in implementing the substantive part of the 
Nairobi Decision, more precisely the paragraphs concerning the substantial transformation a nd 
certification requirements.  
1.16.   As we are now approaching the next WTO Ministerial Conference, it is of paramount 
importance to show that concrete progress has been made that could be adequately reflected in the 
outcome of the forthcoming Ministerial. Thus , it is now time to focus the debate in the Committee 
on Rules of Origin (CRO) on how to effectively implement the substantive aspects of the Nairobi 
Decision on preferential rules of origin for LDCs.  
1.17.   We hope that the submission may mark the start of a constructive engagement in improving 
rules of origin for LDC by all preference giving countries.  
_______________  
 
 
3 See document G/RO/W/194 of 5 March 2020: 5th Anniv ersary of the Nairobi Ministerial Decision: 
Review of Implementation, Identification of Gaps, and the Way Forward – Communication from the LDC Group.   
  G/RO/W/209  
 
- 4 - ANNEX  
TABLE 1: UTILIZATION OF THE GSP SCHEME OF JAPAN BY HS HEADING, RANKED BY DESCENDING VALUE OF DUTIABLE IMPORTS  
Reporter: JAPAN; Partner: LDCs; Year: 2019; Imports in US $ thousand  
HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6203 Suits 
(Men/Boys)  560,990 560,990 560,990 33 559,999 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined in this table 
there is still almost no 
utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO  
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  6204 Suits 
(Women/Girls)  514,001 514,001 514,001 52 501,944 
6110 Jerseys, 
pullovers  479,410 479,410 479,410 28 476,850 
6109 T-shirts , 
singlets (KoC)  340,900 340,900 340,900 13 337,263 
4202 Trunks; suit, 
camera  235,402 235,402 235,402 30 228,677 Manufactured 
from products 
of the different 
tariff headings 
(excluding 
heading  
42.05) of the 
products  Heading 4205 
classifies  Other 
articles of leather or 
of composition leather 
including parts. The 
exclusion of this 
headings means that 
assembly of parts of 
leather into a finished 
article of leather is 
not origin conferring  
 Excluding non -
originating parts 
from the assembly 
process may  be 
overly stringent rule 
even taking into 
account the 
tolerance rule  Manufacture from 
materials of any 
heading, except that 
of the product or 
Manufacture in 
which the value of 
all the materials 
used does not 
exceed 70% of the 
ex-works price of 
the product  (EU 
rules of origin for 
LDCs)   
  G/RO/W/209  
 
- 5 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6403 Footwear; with 
outer soles  211,056 211,056 211,056 23 170,786 Manufactured 
from products 
of the different 
tariff heading 
(excluding 
heading  
64.06) of the 
products  It is clear that this 
PSRO is overly 
stringent as already 
contained in the 
former submission1 Assembly of parts of 
shoes into shoes is a 
substantial 
transformation  Manufacture from 
materials of any 
heading, except 
from assemblies of 
uppers affixed to 
inner soles or to 
other sole 
components of 
heading 640 6 (EU 
rules of origin for 
LDCs)  
6205 Shirts 
(men/boys) 
(not KoC)  209,724 209,724 209,724 12 209,454 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of 
Chapter s 50 to 
56 or 58 to 60  Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization.  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of g arments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  6201 Overcoats, 
carcoats,  196,613 196,613 196,613 11 196,600 
6202 Coats (Women)  168,549 168,549 168,549 15 168,327 
6104 Suits 
(women/girls)  157,301 157,301 157,301 31 155,610 
7502 Nickel; 
unwrought  157,276 157,276 157,276 1 157,275 Manufactured 
from products 
other than 
those of 
heading 75.01 
or 75.02  Heading 75.01 is 
classifying Nickel 
mattes, nickel oxide 
sinters and other 
intermediate products 
of nickel metallurgy.  By excluding 
heading 7501 and 
7502 the PSRO does 
not recogn ize the 
manufacturing 
process of casting2 
or making alloys3 as 
origin conferring 
operation  CTH for nickel not 
alloyed and CTSH 
for nickel alloys4 
 
1 Document G/RO/W/184 of 7 May 2019 . 
2 Casting  is a manufacturing process by which a liquid material is us ually poured into a mold, which contains a hollow cavity of the desired shape, and then allowed to solidify. 
The solidified part is also known as a  casting, which is ejected or broken out of the mold to complete the process.  
3 To make  Nickel Alloys , start with the purest available raw materials to achieve the required chemical composition. A correct chemical composition is necessary to give uniform 
and required properties to different allo ys. The alloys are then Melted, Hot -Rolled and Processed to final sizes using state -of-the-art technology. All processes are constantly monitored 
at each step using statistical process control tools to ensure the best quality of the final products. The pro cess for making each alloy is set after a detailed exercise using concepts 
such as Failure Mode Effect Analysis (FEMA) and Design of Experiments (DOE)  
4 From Harmonized Rules of Origin. See JOB/RO/5/Rev.1 for further details.    
  G/RO/W/209  
 
- 6 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
0307 Molluscs;  138,527 138,527 137,711 2 137,731 Manufactured 
from products 
other than 
those of 
Chapter 3  This PSRO practically 
requires that all 
products of chapter 3 
are wholly obtained 
and practically 
disregard a number of 
working or processing 
operation that may be 
carried out within the 
chapter such making 
flours or pellets out of 
molluscs  Furth er investigation 
has to be carried out 
on the reason for 
low utilization. 
Direct shipment 
requirement in any 
case it may be 
observed that 
making flours and 
smoke molluscs  
within the same 
chapter should be 
considered a 
substantial 
transformation  There is ne ed to 
discuss further the 
reasons for such low 
utilization and 
reform the actual 
Rules of origin 
accordingly  
6211 Track suits, 
swimwear and 
other garments 
(not KoC)  118,563 118,563 118,563 21 116,749 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent 
years. The data shows 
that for the HS 
headings examined 
there is still alm ost no 
utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low  
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  6206 Blouses 
(women/girls)  108,697 108,697 108,697 10 107,661 
6404 Footwear  81,124 81,124 81,124 5 38,822 Manufactured 
from products 
of the different 
tariff heading 
(excluding 
heading 
64.06) of the 
products  It is clear that this 
PSRO is overly 
stringent as already 
contained in the 
former submission5 Assembly of parts of 
shoes into shoes is a 
substantial 
transformation  Manufacture from 
materials of any 
heading, except 
from assemblies of 
uppers affixed to 
inner soles or to 
other sole 
components of 
heading 6406 (EU 
rules of origin for 
LDCs)  6402 Footwear  79,950 79,950 0 0 15,754 
 
5 Document G/RO/W/184 of 7 May 2019 .  
  G/RO/W/209  
 
- 7 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6103 Suits, 
ensembles, 
jackets,  79,390 79,390 79,390 14 78,227 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent 
years. The data shows 
that for the HS 
headings examined 
there is still almost no 
utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  
0306 Crustaceans  68,983 68,983 68,983 4 68,872 Manufactured 
from products 
other than 
those of 
Chapter 3  This rule practically 
requires that all 
products of chapter 3 
are wholly obtained 
and practically 
disregard a number of 
working or processing 
operation that may be 
carried out within the 
chapter such  making 
flours or pellets out of 
crustaceans  Further investigation 
has to be carried out 
on the reason for 
low utilization. In 
any case it may be 
observed that 
making flours and 
smoke crustaceans 
should be 
considered a 
substantial 
transformation  There is need to 
discuss further the 
reasons for such low 
utilization and 
reform the actual 
Rules of origin 
accordingly  
6106 Blouses, shirts 
and shirt 
blouses ; 
women's or 
girls', KoC  65,999 65,999 65,999 11 65,707 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement   
  G/RO/W/209  
 
- 8 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
0303 Fish; frozen  60,073 60,073 60,073 2 60,071 Manufactured 
from products 
other than 
those of 
Chapter 3  This rule practically 
requires that all 
products of chapter 3 
are wholly obtained 
and practically 
disregard that filleting 
of fish is a substantial 
transformation   Further investigation 
has to be carried out 
on the reason for 
low utilization. In 
any case,  it may be 
observed that 
filleting fish should 
be considered as a 
substantial 
transformation.  There is need to 
discuss further the 
reasons for such low 
utilization and 
reform the actual 
Rules of origin 
accordingly  
6210 Garments 
made up of 
fabrics  58,115 58,115 58,115 9 56,551 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  6107 Underpants, 
briefs, 
nightshirts  52,227 52,227 52,227 10 51,786 
6108 Slips, 
petticoats, 
briefs  48,287 48,287 48,287 19 43,166 
6302 Bed linen, 
table linen, 
toilet linen and 
kitchen linen  45,022 45,022 45,022 6 33,602 Manufactured 
from chemical 
products, from 
products of 
heading 47.01 
to 47.06, or 
50.01, or from 
natural textile 
fibres 
(excluding raw 
silk), 
manmade 
staple fibres or 
textile fibre 
waste  The rule is basically 
requiring a double 
transformation 
requirement: the 
making up of fabrics 
and the making of the 
textile articles from 
fabrics  Double 
transformatio n 
requirements are 
obsolete and do not 
respect real value 
chains commercially 
meaningful  Making up from 
fabric or 
Manufacture in 
which the value of 
all the non -
originating materials 
used does not 
exceed 70% of the 
ex-works price of 
the product   
  G/RO/W/209  
 
- 9 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6105 Shirts 
(mens/boys)  42,493 42,493 42,493 8 42,402 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There  is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  
6601 Umbrellas  35,298 35,298 35,298 2 24,815 Manufactured 
from products 
other than 
those of 
heading 66.01, 
provided that 
the value of 
non-originating 
products used 
does not 
exceed 50 % 
of the value of 
the products  This PSRO provides 
for a double 
requirement of CTH 
with exception and an 
ad valorem  
percentage 
requirement not in 
line with paragraph 
1.3 of the Nairobi 
decision  This PSRO cumulate 
two requirements of 
CTH and ad valorem 
percentage 
requirement while 
for the same 
products other 
preference giving 
countries provide for 
simple CTH and as 
alterna tive an ad 
valorem percentage 
requirement with a 
higher and more 
liberal threshold of 
non-originating 
material   Manufacture from 
materials of any 
heading, except that 
of the product or 
Manufacture in 
which the value of 
all the non -
originating materials 
used does not 
exceed 70% of the 
ex-works price of 
the product  
(EU rules of origin 
for LDCs)  
6111 Garments and 
clothing 
accessories, 
babies  29,704 29,704 29,704 8 29,663 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is a need to 
discuss further the 
reasons for such lo w 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement   
  G/RO/W/209  
 
- 10 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6307 Other made -up 
articles incl. 
dress patterns  23,962 23,962 23,962 7 13,257 Manufactured 
from chemical 
products, from 
products of 
heading 47.01 
to 47.06, or 
50.01, or from 
natural textile 
fibres 
(excluding raw 
silk), 
manmade 
staple fibres or 
textile fibre 
waste  The rule is basically 
requiring a double 
transformation 
requirement: the 
making up of fabrics 
and the making of the 
textile articles from 
fabrics  Double 
transformation 
requirements are 
obsolete and do not 
respect real value 
chains commercially 
meaningful  Making up from 
fabric or 
Manufacture in 
which the value of 
all the no - 
originating materials 
used does not 
exceed 70% of the 
ex-works price of 
the product  
6115 Hosiery; panty 
hose, tights,  23,612 23,612 23,612 9 21,683 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing fro m 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  6207 Singlets & 
other vests  22,185 22,185 22,185 6 22,180 
6208 Singlets & 
other vests  20,229 20,229 20,229 7 20,154 
0304 Fish fillets and 
other fish meat  19,947 19,947 19,947 5 19,943 Manufactured 
from products 
other than 
those of 
Chapter 3  This rules practically 
requires that all 
products of chapter 3 
are wholly obtained 
and practically 
disregard the fact that 
filleting fish may be 
an origin conferring 
operat ion  Filleting of fish 
should be 
considered as a 
substantial 
transformation  There is need to 
further discuss the 
reasons for such low 
utilization and 
reform the actual 
Rules of origin 
accordingly   
  G/RO/W/209  
 
- 11 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6114 Garments; KoC  19,258 19,258 19,258 8 19,059 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  6102 Coats 
(women/girls)  16,523 16,523 16,523 4 16,513 
4203 Articles of 
apparel and 
clothing 
accessories, 
leather  13,999 13,999 0 0 13,999 Manufactured 
from products 
of the different 
tariff headings 
(excluding 
heading 
42.05) of the 
products  Heading 4205 
classifies  Other 
articles of leather or 
of composition leather 
including parts. The 
exclusion of this 
headings means that 
assembly of parts of 
leather into a finished 
article of leather is 
not origin conferring  Assembly article of 
leather from parts 
should be 
considered 
substantial 
transformation  CTH 
6116 Gloves, mittens 
and mitts; KoC  12,927 12,927 12,927 13 12,282 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investi gated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement   
  G/RO/W/209  
 
- 12 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6505 Hats and other 
headgear  12,647 12,647 12,647 7 12,629 Manufactured 
from products 
other than 
those of 
heading 65.01 
or 65.05 (felt 
hats and other 
felt headgear, 
made from the 
hat bodies, 
hoods or 
plateaux of 
heading 65.01, 
whether or not 
lined or 
trimmed)  There is a need to 
further explore in 
detail the reason for 
such underutilization  The specific heading 
exception of 6501 
disregard the fact 
that   blocking to 
shape of hat -forms 
or hat bodies is an 
important working 
pr processing of felt 
he    PSRO excluded 
the possibility of  Manufacture from  
materials of any 
heading, except that 
of the product  
(EU PSRO for LDcs)  
 
6112 Track suits, ski 
suits and 
swimwear; 
KoC 12,596 12,596 12,596 5 12,585 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing fro m 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  6101 Coats 
(men/boys)  11,870 11,870 11,870 3 11,853 
0713 Vegetables, 
leguminous;  23,801 11,811 11,811 5 11,805 Manufactured 
from products 
other than 
those of 
Chapter 7  This PSRO required 
that all fruits and 
vegetables have to be 
wholly obtained as 
such low utilization 
may be due to 
evidence of direct 
consignment 
requirements  
 Moderate heating for 
preserving an 
packaging may be 
carried out for 
leguminous  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement   
  G/RO/W/209  
 
- 13 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
3923 Plastic for 
goods packing  10,110 10,065 10,065 2 3,425 CTH Introducing an 
alternative criterion 
based on ad valorem 
percentage may be a 
trade facilitation 
provision  CTH for heading 
3926 does not take 
into account that 
other working and 
processing may take 
place not generating 
a CTH such as 
Colouring, printing 
or vacuum 
deposition of 
metal.In addition 
parts of articles 
3926 are  calssfied 
in the same heading 
and a CTH is 
excluding assembly 
operations as orign 
conferring  Manufacture from 
materials of any 
heading, except that 
of the product. or 
Manufacture in 
which the value of 
all the materials 
used does not 
exceed 70% of the 
ex-works price of 
the product  3926 Articles of 
plastics  8,708 8,708 8,708 5 7,342 
5607 Twine, 
cordage, ropes 
and cables  13,010 8,132 8,132 5 8,127 Manufactured 
from chemical 
products, from 
products of 
heading 47.01 
to 47.06, or 
from natural 
textile fibres, 
manmade 
staple fibres or 
textile fibre 
waste, neither 
carded nor 
combed  This PSRO requires a 
double or triple 
transformation 
including spinning or 
extruding   while 
manufact uring cables 
and ropes from yarn 
or filaments requires 
manufacturing 
processed like 
spinning folding or 
cabling Plaiting or 
braiding  Obtaining ropes and 
cables from yarns 
should be 
considered a 
substantial 
transformation  Manufacture from 
yarn or filament b y 
folding or cabling or 
Plaiting or braiding.   
  
  G/RO/W/209  
 
- 14 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6406 Footwear; 
parts of 
footwear  7,560 7,560 0 0 6,523 Manufactured 
from products 
of the different 
tariff heading 
(excluding 
heading 
64.06) of the 
products  
 It is clear that this 
PSRO is overly 
stringent as already 
contained in the 
former submission6 Assembly of parts of 
shoes into shoes is a 
substantial 
transformation  Manufacture from 
materials of any 
heading, except 
from assemblies of 
uppers affixed to 
inner soles or to 
other sole 
components o f 
heading 6406 (EU 
rules of origin for 
LDCs)  
6306 Tarpaulins, 
awnings and 
sunblinds  7,226 7,226 7,226 0 6,790 Manufactured 
from chemical 
products, from 
products of 
heading 47.01 
to 47.06, or 
50.01, or from 
natural textile 
fibres 
(excluding raw 
silk), 
manmade 
staple fibres or 
textile fibre 
waste  The rule is basically 
requiring a double 
transformation 
requirement: the 
making up of fabrics 
and the making of the 
textile’s articles from 
fabrics  Double 
transformation 
requirements are 
obsolete and do n ot 
respect real value 
chains commercially 
meaningful  Making up from 
fabric or 
Manufacture in 
which the value of 
all the non -
originating materials 
used does not 
exceed 70% of the 
ex-works price of 
the product  
3307 Perfumery, 
cosmetic or 
toilet 
preparations  6,905 6,905 6,905 0 7 CTH CTH seems to permit 
the manufacturing 
from different 
components. Further 
investigation should 
be conducted to find 
out the reasons for 
poor utilization   CTSH  
 
6 Document G/RO/W/184 of 7 May 2019 .  
  G/RO/W/209  
 
- 15 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6305 Sacks and bags  6,194 5,833 5,833 1 411 Manufactured 
from chemical 
products, from 
products of 
heading 47.01 
to 47.06, or 
50.01, or from 
natural textile 
fibres 
(excluding raw 
silk), 
manmade 
staple fibres or 
textile fibre 
waste  The rule is basically 
requiring a double 
transformation 
requirement: t he 
making up of fabrics 
and the making of the 
textile’s articles from 
fabrics  Double 
transformation 
requirements are 
obsolete and do not 
respect real value 
chains commercially 
meaningful  Making up from 
fabric or 
Manufacture in 
which the value of 
all the no n-
originating materials 
used does not 
exceed 70% of the 
ex-works price of 
the product  
6405 Footwear  5,739 5,739 5,739 3 4,689 Manufactured 
from products 
of the different 
tariff heading 
(excluding 
heading 
64.06) of the 
products  It is clear that this 
PSRO is overly 
stringent as already 
contained in the 
former submission  Assembly of parts of 
shoes into shoes is a 
substantial 
transformation  Manufacture from 
materials of any 
heading, except 
from assemblies of 
uppers affixed to 
inner soles or to 
other sole  
components of 
heading 6406 (EU 
rules of origin for 
LDCs)  
1504 Fats and oils 
(fish)  5,648 5,648 5,648 0 5,648 Manufactured 
from products 
other than 
those of 
Chapter 1 or 
15 The exclusion of 
product of entire 
Chapter 1 and 15 
makes the PSRO 
excessively 
demanding of 
ingredients  Obtaining oils from 
primary ingredients 
of chapter 1 or by 
refining products of 
chapter 15 is clearly 
a substantial 
process  CTH  
  G/RO/W/209  
 
- 16 - HS Code  Description  Value of Imports  
GSP RoO  Comments  Technical Elements  Suggested Best RoO 
Practice  Total from  
Partner  Import  
Dutiable  GSP Received  
MFN Covered  Received  
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 
6209 Garments and 
clothing 
accessories; 
babies' (not 
KoC) 5,421 5,421 5,421 6 5,399 Manufactured 
from woven 
fabrics, felt, 
nonwovens, 
KoC fabrics or 
lace of Chapter 
50 to 56 or 58 
to 60 Although Japan has 
improved the rules of 
origin for chapter 61 
and 62 in recent years 
the data shows that 
for the HS headings 
examined there is still 
almost no utilization  The PSRO requires 
manufacturing from 
woven fabrics. It 
may be the case 
that the garments 
have been 
assembled from 
parts of garments in 
the same chapter. 
To be further 
investigated  There is need to 
discuss further the 
reasons for such low 
utilization that may 
be due to the PSRO 
or related 
administrative 
requirement such as 
documentary 
evidence of direct 
shipment 
requirement  
4107 Leather further 
prepared after 
tanning or 
crusting  4,901 4,901 4,901 6 4,895 Manufactured 
from products 
other than 
those of 
heading 41.01, 
41.04 or 41.07  Manufacturing of 
leather from tanned 
skins should be 
considered a 
substantial 
transformation   CTH 
1605 Crustaceans, 
molluscs  4,442 4,442 4,442 3 4,439 Manufactured 
from products 
other than 
those of 
Chapter 1, 2, 
3, 5 or 16  The exclusion of 
several chapters that 
are containing the 
essential material is 
an excessive stringent 
PSRO  The multiple 
exceptions of 
several chapters 
including chapter 3 
where fresh 
molluscs are 
classified means 
that several working 
of processing to 
prepare preserved 
molluscs of heading 
1605 are 
disregarded making 
this PSRO 
excessively 
demanding    CTH 
 
__________