WORLD TRADE
ORGANIZATIONG/RO/45/Add.8/Rev.2
27 November 2001
(01-6043)
Committee on Rules of Origin
INTEGRATED NEGOTIATING TEXT FOR THE
HARMONIZATION WORK PROGRAMME
CHAPTERS 1-24 (AGRICULTURAL PRODUCTS AND FISH)
Note by the Secretariat
Revision
1. At its meeting on 10 May 1996, the Committee on Rules of Origin (CRO) decided to establish
an Integrated Negotiating Text (INT) for the Harmonization Work Programme.  The first INT was
circulated in document G/RO/W/13 (24 Ma y 1996), and had been periodically updated
(G/RO/W/13/Rev.1-3, G/RO/W/13/Rev .3/Add.1 and 2).  A further consolidated INT was circulated in
document G/RO/41(3 September 1999), and has al so been periodically updated (JOB(99)/5869,
JOB(99)/7617, JOB(00)/1573, JOB(00)/323 0, JOB(00) /5207 and JOB(00)/7194).
2. The attached document is the latest update of the negotiating text for Chapters 1-24 and
reflects the progress made by the CRO in September/October 2001.G/RO/45/Ad d.8/Rev.2
Page 2
TERMINOLOGY  GUIDE
I. Rules presented at heading level :
(a) If the rule is for the whole heading:
CTH - change to this heading from any other heading
(b) If the rule is for a split heading:
CTHS - change to this split heading from any othe r split of this heading or from any other
heading
CTH - change to this split head ing from any other heading
(N.B.  change from any other split of this heading is excluded.)
II. Rules presented at subheading level:
(a) If the rule is for the whole subheading:
CTSH - change to this subheading from any othe r subheading or from any other heading
CTH - change to this subheading from any other heading
(N.B.  change from any other subhead ing of this heading is excluded.)
(b) If the rule is for a split subheading:
CTSHS - change to this split subheading from any other split of this subheading or from any
other subheading or heading
CTSH - change to this split subheading from any ot her subheading or heading  (N.B.  change
from any other split of this subheading is excluded)
CTH - change to this split subheading from any other heading
(N.B.  change from any other split of this subheadin g or from any other subheading of this heading is
excluded.)G/RO/45/Ad d.8/Rev.2
Page 3
Note
The original numbering of the issues for decision remains unchanged, although certain issues have
been resolved by the CRO.  The text of resolved issues has been struck out.
Notes on the table
Rules of origin relating to unresolved issues submitted by the Technical Committee on Rules of Origin
(TCRO) for decision by the Committee on Rules of Origin (CRO) are designated as "Submitted to CRO
for decision";
Agreed rules of origin submitted by the TCRO for endorsement by the CRO are designated as
"Basket 1";
Rules of Origin endorsed or resolved by the CRO ar e designated as "Basket 1 (endorsed by CRO)".  The
CRO agreed that the endorsed rules should not be reopened at the level of the CRO, keeping in mind,
however, that, in accordance with Article 9.3(b) of th e Agreement, the CRO should finally consider the
results of the Harmonization Work Programme in terms of their overall coherence (see document
G/RO/M/11).G/RO/45/Ad d.8/Rev.2
Page 4
Issues for Decision: Chapters 1-24
CHAPTER 1
ISSUE No. 1: RAISING/FATTENING OF ANIMALSOPTION A: Yes1. Under certain conditions, raising may be regarded as reflecting the last substantial transformation
since it radically transforms the animals concerned.  Their weight, size and commercial value increase
substantially.  The conditions reflecting the last substantial transformation are based on the animal’s
weight and/or the period of raising.  The conditions differ from species to species and sometimesconcern one species rather than another.  In the latter case, the country of origin of the animal would
be the country where the animal is born and raised, or the country where it is born.
2. The conditions which raising must meet in order to  be regarded as last substantial transformation
are specified in the table appended to this document.
OPTION B: No
3. Raising cannot reflect the last substantial transformation.  All the specific features and intrinsic
characteristics of an animal depend on where that animal is born.  Consequently, the origin of live
animals is the country where they are born.
Relevant HS Codes:
01.01, 01.02, 01.03, 01.04, 01.05 and 01.06.
Reference:
41.745
ISSUE No. 2: SLAUGHTERING
OPTION A: Yes4. Slaughtering is a last substantial transformati on in that the products obtained are completely
different from the initial product in all respects : the products arising out of slaughtering are for
human or animal consumption, whereas live animals cannot be used for that purpose; thecharacteristics of the meat and offal obtained after slaughtering are completely different from the
characteristics of the live animals. Slaughtering  is not restricted solely to the killing of the animal; a
series of processes are necessary in order to obtain the meat or offal.
OPTION B: Yes, provided that :
5. Slaughtering is preceded by raising or fattening of the animal. The various options concerning the
period of time and/or the weight necessary prior for slaughtering to be regarded as last substantial
transformation are set out in the table appended to this document.
OPTION C: No
6. Slaughtering cannot constitute last substantial transformation. This process in no way alters the
quality of the meat, which remains dependent on the conditions under which the animal was raised.G/RO/45/Ad d.8/Rev.2
Page 5
Relevant HS Codes:
02.01 to 02.07, 02.09, 02.10
Reference:
41.745
ISSUE No. 3: SEPARATION OF POULTRY FAT FROM POULTRY MEATOPTION A: Yes
7. The separation of poultry meat from poultry fat fully reflects the last substantial transformation.
Given the specific nature of the meat and the fat, this separation is very awkward and requires a high
level of technical skill and know-how.
OPTION B: No
8. The separation of poultry meat from poultry fat does not reflect the last substantial
transformation.  It is a simple process for separating two products and cannot affect the origin of
either of those two products.
Relevant HS Code:
ex02.09 (c)
ISSUE No. 4: DRYING(I) Pig fat, free of lean meat, and poultry fat, meat and edible meat offal :OPTION A: Yes
9. The drying of pig fat, free of lean meat, poultry fat, meat and edible meat offal substantially alters
the characteristics of these products, making it possible to obtain new products that are completely
different from the initial products used.  The drying of these products fully reflects the last substantial
transformation.
OPTION B: No
10. Drying is based on controlling or reducing the quantity of water naturally occurring in a product,
with a view to delaying the activity of micro-or ganisms. It is intended to preserve goods during
transportation and/or storage, and accordingly is a minimal operation.
(II) Fish; fish livers, roes and fish fillets :
OPTION A: Yes11. The drying of fish, fish livers, roes and fish fillets is a complex process which completely
transforms the initial products used.  That process fully reflects last substantial transformation.
12. The process of drying fish takes approximately three months.  After the fish have been gutted,
they are hung on stocks, hence the term “stockfish”.  During the drying process, the proteins in theflesh undergo a complete change in character.  During that process, approximately 70 % of the water
is removed.  To produce 1 kg of dried fish, approximately 4.3 kg of gutted and de-headed fish is
required.  The value of dried fish is approximately eight times that of the raw material.  The drying
process results in a new finished product which is sought after by consumers.  Consequently, it cannotG/RO/45/Ad d.8/Rev.2
Page 6
be regarded as a process for the preservation of goods during transportation and/or storage.  The
drying of these products is therefore considered to be last substantial transformation.
OPTION B: Yes, provided that :
13. Other operations are involved in the country of importation.  drying alone cannot reflect last
substantial transformation.
OPTION C: No
14. Drying is based on controlling or reducing the quantity of water naturally occurring in a product,
with a view to delaying the activity of micro-or ganisms. It is intended to preserve goods during
transportation and/or storage and accordingly is a minimal operation.
(III) Eggs and egg yolks :
OPTION A: Yes15. The drying of eggs or egg yolks fully reflects the last substantial transformation.  The
characteristics and use of the product obtained are totally different from those of the initial product.In general, most dried products are obtained using spray-drying equipment.  There are, however, some
dryers using pan drying, belt drying, freeze drying, and modifications of the procedures.  Spray-dried
eggs (or yolks) are prepared by atomizing the eggs (the yolk) into a warm air flow, so that the
moisture is quickly removed.  The origin of the dried eggs or dried egg yolks is the country where the
drying is effected.
OPTION B: Yes, provided that other processes are involved.
16. There is last substantial transformation when, in the country of importation, the shell is removed
followed by drying of the whole egg, or the shell is removed followed by separation of the white from
the yolk, followed by drying of the latter.  In other words, there is last substantial transformation onlywhere there is a combination of removal of the shell and drying, or removal of the shell, separation of
the white from the yolk and drying of the yolk.
OPTION C: No.
17. Drying is based on controlling or reducing the quantity of water naturally occurring in a product,
with a view to delaying the activity of micro-or ganisms. It is intended to preserve goods during
transportation and/or storage, and accordingly is a minimal operation.
(IV) Vegetables :
OPTION A: Yes, provided that the drying is freeze-drying.18. Only the freeze-drying of vegetables is to be regarded as reflecting the last substantial
transformation.  Other drying processes do not result in either the same level of change to the
vegetables or the same level of preservation of their nutritional qualities (flavour, texture, etc.).
OPTION B: Yes, provided that there are several processes involved
19. Drying of vegetables constitutes last substantial transformation when combined with other
processes.  There are different methods of drying  : field drying and sun drying, air drying, sprayG/RO/45/Ad d.8/Rev.2
Page 7
drying, vacuum drying, freeze drying, dehydrofreezing and intermediate moisture food and osmotic
drying.
20. Freeze drying includes several steps e.g. :
- Cleaning : Earth, stones, etc., not removed in the field from root crops are taken away by
stone traps, horizontal rod or drum washers, or other devices;
- Grading : Diverging belts or vibrating mesh sieves ensure uniformity of subsequent
processing by separating by size;
- Peeling : Is done by steam, abrasion, lye, flame or mechanical knife;- Cutting, slicing, dicing and shredding;- Blanching : Is an essential pre-dehydration process for many vegetables to inactivate enzymes
that would otherwise deteriorate the colour, fl avour and texture during drying and storage.
Blanching may be done by hot water, steam or microwave heating. It involves heating to 90 °
C or more for between 20 seconds and 3 minutes;
- Chemical treatment : During water blanchin g or subsequent water cooling, additional
treatments may be imposed such as adding sodium metabisulphate and sodium carbonate to
green vegetables to prevent paeophytin. With water blanching, the medium may also contain
salt and pH regulators; and
- Storage and packaging : Bulk stored dehydrat ed vegetables are best protected by airtight
containers flushed with an inert gas such as nitrogen. For sale in smaller bulk or retail sizes,
packing resistant to water vapour, oxygen and light is used.
21. The process of drying fruit is similar to the description above and considered, like that for
vegetables, as substantial.
OPTION C: No
22. Drying is based on controlling or reducing the quantity of water naturally occurring in the
products, with a view to delaying the activity of micro-organisms. It is intended to preserve goods
during transportation and/or storage and accordingly is a minimal operation.
Relevant HS Codes:
Ex 02.09 (b), ex 02.09 (d), ex 02.10 (a), ex 02.10 (c),  ex 02.10 (e), ex 03.05 (b), ex 03.06 (b),
ex 03.07 (b), 0408.11, 0408.91, 07.12 (b), 07.12 (c), 07.13, 08.13 and 08.14 (a).
References :
41.417, 41.745, 41.899,
ISSUE No. 5: SALTING OF POULTRY FAT OR PLACING POULTRY FAT IN BRINEOPTION A: Yes
23. Salting of poultry fat or placing poultry fat in brine reflects last substantial transformation.  The
products obtained are completely different from the initial ones in respect of taste, flavour and
presentation.  Their shelf life and value differ substantially from those of the same products prior to
salting or placing in brine.G/RO/45/Ad d.8/Rev.2
Page 8
OPTION B: No
24. Salting of poultry fat or placing poultry fat in brine are processes for preserving the products
concerned and therefore cannot reflect last substantial transformation.  It is intended to preserve goods
during transportation and/or storage and accordingly is a minimal operation.
Relevant HS Codes:
ex 02.09(c), ex 02.10(b)
Reference :
41.745
ISSUE No. 6: SMOKING(I) Pig fat, free of lean meat and poultry fat, meat and edible meat offal :OPTION A: Yes
25. Smoking of pig fat, free of lean meat and poultry fat, meat and edible meat offal substantially
alters the characteristics of these products, making it possible to obtain new products that are
completely different from the initial products used.  The taste and the flavour of smoked products
meet an ever increasing demand.  The use of smoked products differs completely from that of
unsmoked products.
26. Consequently, smoking of pig fat, free of lean meat and poultry fat, meat and edible meat offal is
considered to reflect the last substantial transformation.
OPTION B: No.
27. Smoking is a simple process which does not substantially alter the characteristics of pig fat, free
of lean meat and poultry fat, meat and edible meat offal.  Consequently, smoking of those products
cannot reflect last substantial transformation.
(II) Fish; fish livers, roes and fish fillets :
OPTION A: Yes.28. The smoking of fish, or fish livers and roes or of fish fillets substantially alters the characteristics
of those products, making it possible to obtain new products that are completely different from the
initial materials used.  Prior to smoking, these products are sometimes salted.  The taste and the
flavour of smoked products meets an ever increasing demand.  The smoking process, which lasts
between six and twelve hours, results in a new finished product.  The use of smoked products differs
completely from that of unsmoked products.  Smoking, which is a complete process requiring skills,know-how and technology, is therefore regarded  as reflecting last substantial transformation.
OPTION B: No
29. Smoking is a simple process which does not substantially alter the characteristics of fish, fish
livers and roes or fish fillets.  Consequently, smoking of those products cannot reflect last substantialtransformation.
Relevant HS Codes:
Ex 02.09 (b), ex 02.09 (d), ex 02.10 (a), ex 02.10 (c), ex 02.10 (e),ex 03.05(c)G/RO/45/Ad d.8/Rev.2
Page 9
References:
41.417, 41.745
ISSUE No. 7:  OBTAINING OF EDIBLE ME ALS AND PELLETS OF MEAT, OFFAL, FISH,
CRUSTACEANS OR AQUATIC INVERTEBRATES
OPTION A: Yes
30. The obtaining of edible meals and pellets of meat, of edible offal, of fish, of crustaceans or of
aquatic invertebrates other than crustaceans or molluscs fully reflects last substantial transformation.
The products obtained are completely different from the initial ones in terms, inter alia, of
presentation and use .
OPTION B: No
31. The obtaining of edible meals and pellets of meat, of edible offal, of fish, of crustaceans or of
aquatic invertebrates other than crustaceans or molluscs does not reflect last substantial
transformation.  To obtain these meals or pellets, it is sufficient to dry the initial product and then
grind it.  Both processes (drying and grinding of meat, edible offal, fish, crustaceans or aquatic
invertebrates other than crustaceans or molluscs) are simple ones.
Relevant HS Codes:
ex 02.10 (j), ex 03.05 (e), ex03.06(d), ex 03.07 (d)
Reference:
41.745
CHAPTER 3
(See also Issues Nos. 4 to 7)
ISSUE No. 8: TREATMENT, CONDITIONING AND/OR RAISING OF LIVE ORNAMENTAL
FISH
(I)          Treatment and conditioning of ornamental fish:
OPTION A: Yes
32. The origin of live ornamental fish is the country where those fish have been subjected to treatment
and conditioning processes.
33. Ornamental fish subjected to such “treatment and conditioning” process are substantially
transformed in terms of improved health and well-being o f the fish, resulting in a high survival rate
upon and after landing.  Without treatment and conditioning fish easily succumb to the stressful
conditions in the bags during the journey, resulting in a poor survival rate thereafter.  As importers are
prepared to pay more for consignments having a high rate of fish survival, the treatment and
conditioning process is therefore by itself a value-adding process.
OPTION B: No
34. The treatment and/or conditioning of live ornamental fish cannot in any way be regarded as
reflecting last substantial transformation.  The origin of the fish is determined on the basis of the placeG/RO/45/Ad d.8/Rev.2
Page 10
of capture or of, raising, or according to the definition of goods to be considered as being wholly
obtained in a single country.
(II)        Raisin g:
OPTION A: Yes, provided that :
35. Under certain conditions, the raising (farming) of ornamental fish fully reflects the last substantial
transformation, given that the characteristics of the fish obtained differ completely from those of the
initial fish.  The various alternatives for the pr oposals which consider raising to reflect the last
substantial transformation are reproduced in the table appended to this document.
OPTION B: No
36. The raising of fish does not reflect last substantial transformation. There are various origin criteria
for live fish proposed :
- Where they meet the requirements of the wholly obtained definitions;
- Where they were hatched from eggs;
- Where they were captured.
(III)       Does the change in value of live ornamental fish reflec t the last substantial transformation?
OPTION A: Yes
37. The origin of live ornamental fish is the country in which the CIF value of non-originating
materials imported and used in the “production” of the fish does not exceed 75 % of the ex-factory
price of the fish.
OPTION B: No
38. The added-value criterion is not appropriate for determining the origin of live ornamental fish.
The origin of the fish is determined on the basis of the place of capture or of raising, or according to
the definition of goods to be considered as being wholly obtained in a single country.
Relevant HS Code:
ex 03.01 (a)
References :
41.745, 41.894
ISSUE No. 9: RAISING OF FISH (OTHER THAN ORNAMENTAL FISH)OPTION A: Yes39.
 Under certain conditions, the raising (farming) of fish fully reflects the last substantial
transformation, given that the characteristics of the fish obtained differ completely from those of the
initial fish.  The various alternatives for the pr oposals which consider raising to reflect the last
substantial transformation are reproduced in the table appended to this document.
OPTION B: NoG/RO/45/Ad d.8/Rev.2
Page 11
40. The raising of fish does not reflect last substantial transformation.  There are various origin
criteria for live fish proposed :
- Where they meet the requirements of the wholly obtained definitions;
- Where they were hatched from eggs;
- Where they were captured.
Relevant HS Code:
ex 03.01 (b)
Reference:
41.745
ISSUE No. 10: CHILLING, FREEZING AND OTHER PROCESSING OF PRODUCTS OF THE
SEA, VEGETABLES AND FRUIT
(I)          Products of the  sea :
OPTION A: Yes, provided that :
41. The fish undergo a combination of three or more processes, involving freezing, chilling, cleaning,
gutting, removing gills, scaling and de-heading.  This combination of three or more processes is
considered a substantial transformation.  The quality of the fish obtained as a result of the processing
differs significantly from the input material.  There is better quality in terms of hygiene, general
appearance and commercial value, which depends largely on the proper processing and packaging to
preserve the quality and to prevent contamination.  The products are graded differently and are meant
for distribution to various countries and outlets.
42. In the case of individually quick-frozen (IQF) raw crustaceans and mollusc s, a combination of
three or more processes involving de-heading, shelling, de-veining, cooking by steaming or by boiling
in water, marinating in brine, freezing or glazing.  The production of frozen IQF raw crustaceans is a
substantial transformation.  The quality of raw crustaceans obtained at the end of the process differs
significantly from the input material in terms of its hygiene/safety, commercial value and general
appearance.  This depends largely on the processing that the product is subjected to and also the
proper handling, processing and packaging of the product to preserve its quality and to prevent any
form of contamination.
43. During processing, it is critical that the time and temperature of the products are closely
monitored.  This is to prevent any possibility of spoilage (microbiological build-up) resulting from
delays and/or inadequate freezing.  As the crustaceans come into constant contact with surfaces of
machines, equipment and containers, they  have to be carefully sanitized and disinfected before and
after production or as frequently as necessary.  Workers involved in the processing are also required
to be well-versed in good manufacturing practices so as to ensure that the products are handled and
processed hygienically.
44. To ensure that the final product is safe, wholesome and is fit for human consumption, the
processors have to constantly monitor and ensure that the critical points in the different stages of the
production process are under control and within the regulatory limit.  They do so by implementing
quality control/assurance programmes as well as food safety systems in their production lines.
45. There is also substantial transformation where the CIF value of non-originating imported
materials used in the production does not exceed 75 % of the ex-factory price of the goods.G/RO/45/Ad d.8/Rev.2
Page 12
OPTION B: No
46. Chilling and freezing, whether alone or in combination with other processes (de-heading, gutting,
etc.) cannot reflect last substantial transformation.  The origin of fish which is chilled, frozen,
de-headed or gutted or which has been subject to a combination of the processes referred to in Option
A above is the country where the fish was caught, raised or wholly obtained.  The various alternatives
proposed are set out in the table appended to this document.
(II)        Vegetables and fruit :
OPTION A: Yes
47. For vegetables and fruit, freezing involves the following steps :
- Cooling as soon as possible after harvesting, to ensure top quality of the product;
- Cleaning;
- Washing;
- Sorting;
- Grading;
- Peeling;
- Blanching : To destroy enzymes which would cause deterioration, vegetables are blanched in
100 ° C water or in steam at atmospheric pressure;
- Cooling must be rapid after blanching to pr event overcooking and bacteria growth. Cooling
can be by water flume, forced air, water spray or a combination thereof;
- Freezing - IQF foods, including corn, peas, lima beans and fresh carrots, freezing precedes
packaging. Freezing can be by air blast belt, fluidized bed or liquid contact;
- Packaging, usually in polyethylene bags; and
- Packing the bags into cartons.
48. Therefore, the freezing of vegetables or fruit is considered to reflect last substantial
transformation.
OPTION B: No
49. Freezing is based on controlling or reducing the quantity of water naturally occurring in the fruit
or vegetables, with a view to delaying the activity of micro-organisms. It is intended to preserve
goods during transportation and/or storage and accordingly, is a minimal operation.
50. Consequently, freezing cannot reflect last substantial transformation, even if combined with the
processes referred to under Option A above.
Relevant HS Codes:
03.02, 03.03,ex 03.06(a), ex03.07(a), 07.10, 08.11, ex 08.14 (a)
References:
41.735, 41.745, 41.891, 41.899
ISSUE No. 11: OBTAINING OF FISH SURIMI
Definition of frozen surimi (provided by Japan)G/RO/45/Ad d.8/Rev.2
Page 13
Frozen Surimi:                means the fish protein product for further processing, which has been
processed by heading, gutting, cleaning fresh fish, and mechanically
separating the edible muscle from the skin and bone.  The minced fish muscle
is then washed, refined, de-watered, mixed with cryoprotective food
ingredients and frozen.
OPTION A: Yes
51. The obtaining of fish surimi fully reflects last substantial transformation, the production process
being sufficiently complex to be regarded as conferring origin.  The product obtained is totally
different from the initial product and meets a very specific demand.  The value of surimi is much
higher than that of the fish from which it is transformed.
OPTION B: No
52. The process for manufacturing fish surimi is a simple one which cannot reflect last substantial
transformation.  The origin of fish surimi is the country of origin of the fish used as the raw material.
Relevant HS Code:
ex 03.04 (a)
Reference:
41.745
ISSUE No. 12: OBTAINING OF FISH FILLETS
Explanatory paper on production of fish fillets (provided by Norway)
The production process from gutted fish (head off) to products of fillets requires
advanced technology and is a comprehensive proce ss. At the same time as the raw material is
reduced (loss of weight), dependent on the product,  from 30 pct. to about 50 pct, the value of the
product increases significantly as a result of the processing.
There is wide range of products of fillets. Even the least advanced processing,
production of fillet  with skin on and pin bone, involves splitting the fish into two separate fillets
and removal of the backbone.  From this semi-processed product which also is traded, one can
produce a wide range of products, skin off, skin  on, pin bone removed, cut as tails, centercuts
and loins. Cutting suited for portions/ pack ages of various sizes (200, 300, 400, 500 gram) and
with a certain number of fillets in each package is an example of a specialized product. Products
can be designed to fit the demand and specification from the consumers.
In addition to the numerous different products, the packaging is done in a number of
different ways, from single frozen fillets in 5-kg packages to consumer packages (trays) in
smaller sizes produced in modified atmosphere.  Most processing plants have from 30-100
employees, and are specialised food industry enterprises operating under strong food hygiene
regulations.  Several of the different produc ts require special machinery, as for instance
electronic weighing and sorting equipment (products sorted by weight, size and number), single-freezers etc.
The value of different fish products do of course vary according to market conditions.
Currently, the value of fresh fish would often be around  NOK 20  pr kilo.  This value increases
to NOK 40 to NOK 70- 75 pr. kilo for fillets, depending on the type of fillet.
OPTION A: YesG/RO/45/Ad d.8/Rev.2
Page 14
53. The obtaining of fish fillets fully reflects the last substantial transformation.  The process of
cutting into fillets involves several operations.  In general, the raw materials are iced in boxes or
frozen.  After washing, the fish are graded by size and quality before the collar-bone is removed by a
cutting machine.  The backbone is then removed and th e fish is cut into two pieces (fillets).  The skin
is separated from the flesh by a skinning machine and the fillets are then prepared and cleaned by
hand to remove any bones, nematodes and blood spots.  The cleaned fillets are graded, packed, frozen
and stored under specific conditions until shipping.  Approximately 3 kg of gutted raw fish is required
to produce 1 kg of fillets ready for freezing.  Unlike ungutted raw fish, fillets are ready for immediate
household use.
OPTION B: No
54. The process for obtaining fish fillets is a simple one which cannot reflect last substantial
transformation.  It is purely and simply a matter of cutting the fish lengthwise into two symmetric
parts and removing the bones, without the slightest transformation of the fish.
Relevant HS Code:
ex 03.04 (b)
References:
41.417, 41.745,
ISSUE No. 13: OBTAINING OF FRESH, CHI LLED OR FROZEN FISH MEAT FROM FRESH,
CHILLED OR FROZEN FISH
OPTION A: Yes55. The obtaining of fish meat from fresh, chilled or frozen fish is a substantial transformation.  This
entails the washing, chilling or freezing of whol e fish, removal of the vertebral column, grading
according to size and quality, and splitting.  Consequently, the fish meat originates in the country
where it was obtained from the fresh, chilled or frozen fish.
OPTION B: Yes, provided that
56. The fish meat may be considered as originating in the country in which it is obtained, provided
that the CIF value of the non-originating materials imported and used in its production does not
exceed 75 % of the ex-factory price of the goods.
OPTION C: No
57. The obtaining of fish meat from fresh, chilled or frozen fish does not reflect the last substantial
transformation.  The processes to which the fresh, chilled or frozen fish are subjected do not entail anyreal transformation of the fish.
Relevant HS Codes:
ex 03.04 (c)
Reference:
41.745
ISSUE No. 14: OBTAINING OF SHARK'S FIN CAKEG/RO/45/Ad d.8/Rev.2
Page 15
OPTION A: Yes
58. Obtaining shark's fin cake from shark's fin fully reflects last substantial transformation. In the
manufacturing of shark’s fin cake, the starting material is shark’s fin. In fact, not the whole shark’s fin
is suitable for making shark’s fin soup. Such processes as scouring, skinning and setting obtain the
suitable part from shark’s fin, rendering it suitable for making shark’s fin soup. The form, the shape
and the utility of the starting material have undergone last substantial transformation.
OPTION B: Yes, provided that :
59. Shark’s fin cake is obtained from fresh, chilled or frozen shark’s fin.
OPTION C: No
60. The process for obtaining shark’s fin cake from shark’s fin is a simple process which does not
reflect last substantial transformation.
Relevant HS Codes:
ex 03.05 (a)
Reference:
41.745.
ISSUE No. 15: OBTAINING SALTED FISH OR FISH IN BRINE, INCLUDING HEAVY SALTED
FISH
OPTION A: Yes61. The process for producing heavy salted fish fully reflects last substantial transformation.
62. There are already definitions by FAO/WHO making  a distinction between salted/salt fish on the
one hand and heavy salted fish on the other hand.
63. Salted/salt fish is defined as :”fish which have been treated by either brining, dry-salting,
pickle-curing or a combination of these treatments increasing the amount of salt in the fish beyond the
limits ordinarily found in the fresh fish”.
64. Heavy salted fish is “salted fish and dried salted fish which has been fully saturated with salt
which may be offered for consumption without further industrial processing”.
65. The obtaining of heavy salted fish is considered to be substantial transformation and it is
described below.
66. In the modern fishing industry, neither heavy salting nor further drying of heavy salted fish is
necessary to ensure the quality of the fish during transportation and storage.  Thus, the EEA
Protocol 4 on Rules of Origin, Article 6 description of insufficient “operations to ensure the
preservation of goods in good condition during transport and storage” does not cover the products inquestion.
67. Furthermore, freezing the raw material is nowadays a better and even less expensive method for
conserving the fish than heavy salting and drying.  This is illustrated by the fact that some countries
import frozen round fish (de-headed and gutted) in order to produce heavy salted fish and heavy
salted dried fish (klip-fish).  Obviously, therefore, heavy salting and drying the fish is obtaining aG/RO/45/Ad d.8/Rev.2
Page 16
new, distinctive end-product, and not a way of ensuring food quality during transportation and
storage.
68. Heavy salted fish and klip-fish are categorized according to specified product standards defined
by the importers.  The quality references between the different markets vary substantially.  Therefore,
the production of heavy salted and dried heavy salted fish is “tailor-made” for given markets, inaccordance with consumer preferences.
69. Heavy salting and drying of heavy salted fish lead to a new product impossible to re-transform to
the original product.
70. After thawing, the meat in a frozen fish will have the same functional (water-binding capacity)
and sensory properties (taste, colour and aroma) as before freezing.  The producers can therefore
choose freely as regards the products they will make from the raw material.  Heavy salted fish, in
contrast, cannot be re-transformed to the starting point, even if the fish is soaked in fresh water forseveral days.
71. The maturity process of the fish meat is conducted by different physical, chemical and enzymic
processes.  The most visible effect is that the muscles lose about 50 % of their water, which is
replaced by salt.  The amount of salt in the salt-saturated fish meat is about 20_%.  In short, the water
goes out and the salt penetrates into the fish muscles.  The changes in the fish are permanent.
72. During the ripening process, the structure of the fish meat is fundamentally changed.  If one
studies the muscles in the fish meat, one can see that the proteins are denaturing and aggregating.
This means that the fish muscles become stiff, shrink and lose the properties of fresh fish meat.  These
changes are impossible to reverse, even if the heavy salted fish is soaked in fresh water.  However
most of the water that was replaced by salt during the maturity process will be absorbed in the fishmeat.  However the fish meat has changed its sensory properties once and for all, i.e. the taste, colour
and aroma are totally different compared to fresh fish.
73. If the heavy salted fish is being dried in order to produce klip-fish, the denaturation of the proteins
and the changes in the sensory properties will be accentuated.  No additional processing method could
change these given characteristics, and heavy salted fish and klip-fish will thus have the same specificcharacteristics until consumption.
74. This degree of processing is time-consuming; it changes the product's physical character and
represents a substantial value added to the product.
75. Production of heavy salted fish and klip-fish is a substantial transformation of the raw material,
with reference both to physical transformation throughout the process and the number of processing
steps, as well as the costs involved in the production.
Information provided by Norway
Joint FAO/WHO Food Standard Programme, CODEX ALIMENTARIUS COMMISION, have
decreed the following definitions:
SALTED/SALT FISH are fish which have been treated by either brining, dry-salting, pickle curing
or a combination of  these treatments increasing the amount of salt in the fish beyond the limitsordinarily found in the fresh fish.
HEAVY SALTED FISH:  salted fish and dried salted fish which has been fully saturated with salt
which may be offered for consumption without further industrial processing.G/RO/45/Ad d.8/Rev.2
Page 17
We are of the opinion that the production of  salted/salt fish, in accordance with the definition
above, is an insufficient working process to confer the status of originating products. Heavy salted
fish, in contrast, represents a substantial transformation, thus conferring the status of originating
products. This conclusion is based on the following reasons:
1.  Heavy salting is a way of producing a new, distinctive product
In modern fishing industry neither heavy salting nor further drying of heavy salted fish is
necessary or appropriate methods to ensure the quality of the fish during transportation and storage.
Thus, the EEA, Protocol 4 On rules of Origin, Arti cle 5 description of insufficient «operations to
ensure the preservation of goods in good condition during transport and storage» does not cover the
products in question.
Further, freezing the raw material is to day a better and even less expensive method for
conserving the fish than heavy salting and drying. This is illustrated by the fact that Norway,Denmark, Portugal and Spain im port round frozen fish in order to produce heavy salted fish and
heavy salted dried fish (klip-fish). Obviously, therefore, heavy salting and drying the fish is
processing a new, distinctive end-product - and not a way of ensuring the food quality during
transportation and storage.
Heavy salted fish and klip-fish are categorised in specified product standards defined by the
importers. Portugal, Spain, Italy, France, Greece and Brazil are important markets for Norwegian
heavy salted fish and dried heavy salted fish. The quality references between the different markets
vary substantially. Therefore, the production of heavy salted and dried heavy salted fish is «tailor-
made» for the given markets in accordance with the consumer preferences.
2.  Heavy salting and drying of heavy salted fish lead to a new product impossible to re-
transform to the original product
After thawing, the meat in a frozen fish will have the same functional (water binding
capacity) and sensory properties (taste, colour and aroma) as before freezing. The producers therefore
can choose freely as regards which products they will make of the raw material. Heavy salted fish, in
contrast, cannot be re-transformed to the starting point, even if the fish is soaked in fresh water forseveral days.
The maturity process of the fish meat is conducted by different physical, chemical and
enzymical processes. The most visible effect is that the muscles looses about 50% of the water, being
replaced by salt. The amount of salt in the salt-saturated fish meat is about 20%. To simplify, the
water goes out and the salt penetrates into the fish muscles. The changes in the fish is permanent.
During the ripening process, the structure of the fish meat is fundamentally changed. If one
study the muscles in the fish meat, one can see  that the proteins are denaturing and aggregating. This
means that the fish muscles get stiff, shrink and loose the properties it had as fresh fish meat. These
changes are impossible to reverse, even if the heavy sa lted fish is soaked in fresh water. Most of the
water, though, that were replaced by salt during th e maturity process, will be absorbed in the fish
meat. But the fish meat has changed its sensory properties  for good, i.e. the taste, colour and aroma
will be totally different compared to fresh fish.
If the heavy salted fish is being dried in order to produce klip-fish, the denaturation of the
proteins and the changes of the sensory properties will be reinforced. No additional processingmethod could change these given characteristics, and heavy salted fish and klip-fish thus will have the
same, specific characteristics until consumption.G/RO/45/Ad d.8/Rev.2
Page 18
3.  The degree of processing is time consuming and changes the products physical character and
represents a substantial value added to the product
Production of heavy salted fish and klip-fish is a substantial transformation of the raw
material - with reference both to physical transformation throughout the process and the number of
processing steps as well as regards costs involved in the production.
Physical transformation
Norwegian-produced heavy salted fish  products (Wet salted split fish) have been through a
process of more than 10 steps from raw material to packing/ready for shipment. There are about 10
additional steps in the production of heavy salted and dried split fish (kilp-fish).
The fish arrives at the production plants headed and gutted (slaughtered with heads removed).
The fish is either chilled or frozen.
In order to produce the heavy salted product wet salted split fish, for instance, the raw
material is going through the following processing stages:
• de-icing or thawing and washing
• size- and quality grading
• splitting, 2/3 of the back bone is removed
• brushing machine to remove blood from the neck part
• trimming and washing  to remove all bloodspots and nematodes
• first stage of the salt ripening process: pickle salted in tubes
• ripening in tubes for approximately one week
• stacked on pallets, new salt added
• continued ripening dry salted on pallets
• grading and quality inspection
• packing
• chilled storage  0 °C to +4 °C
A standard processing line for frozen fillets consists of  about 10 steps from raw material to
shipment. In comparison, split heavy salted fish usually consists of about 11 steps including at least
two steps of ripening.
Production costs
Based on cost analysis from the  Federation of Norwegian Fishing Industry (FNL),
experienced yield-figures and knowledge of the production processes, the  average direct production
costs (raw material not included) to produce one kilo of the end products have been calculated as
follows:
Split, heavy salted cod NOK 3,94 ECU 0,49
Split, klip-fish of cod NOK 7,35 ECU 0.91
Heavy salted cod fillets NOK 7,84 ECU 0,97
Klip-fish fillets NOK 9,80 ECU 1,22
Frozen cod fillets NOK 7,97 ECU 0,96
Frozen cod fillets in block NOK 7,15 ECU 0,89
(1 ECU = 8,06 NOK)G/RO/45/Ad d.8/Rev.2
Page 19
4.  Heavy salted fish may be offered for consumption without further industrial processing
Reference is made to the FAO definitions (cfr. page 1).
Heavy salted fish is most commonly used for consumption without further industrial
processing.
The heavy salted fish and the klip-fish are sold on the markets and supermarkets to the
consumers. The fish is sold whole or cut into smaller parts to fit the consumers demands as displayed
to you in this meeting. From the video we have learned how the fish will be soaked in water before
preparation by the end-consumer.
OPTION B: No76. Salting is based on controlling or reducing the quantity of water naturally occurring in the
products, with a view to delaying the activity of micro-organisms. It is intended to preserve goods
during transportation and/or storage and accordingly is a minimal operation.
Relevant HS Code:
ex 03.05 (b)
References:
41.417,41.745
CHAPTER 4
(See also Issue No. 4)
ISSUE No. 16: OBTAINING COFFEE CREAMEROPTION A: Yes
77. Obtaining coffee creamer fully reflects last substantial transformation. In the manufacture of
coffee creamer, the starting material is skimmed milk powder (possibly also from other dairy
ingredients).  Milk fat, water, emulsifiers and stabilisers are added in accordance with specifications.
The product is sterilized at a specific temperature, then cooled before putting into packages.  The final
product has a specific use and is intended to be consumed by putting into coffee.
OPTION B: Yes, provided that :
78. Coffee creamer is obtained from liquid milk of heading 04.01.
OPTION C: No
79. The origin of  coffee creamer is the country in which the liquid milk is obtained in its natural or
unprocessed state.
Relevant HS Code:
Ex 04.02 (a)
Reference:
41.745G/RO/45/Ad d.8/Rev.2
Page 20
ISSUE No. 17: PRODUCTION OF RECONSTITUTED MILK
OPTION A: Yes80. Production of reconstituted milk fully reflects last substantial transformation.
81. Milk is reconstituted from two main ingredients which are anhydrous (no moisture), whereas the
end product is hydrous (rich in moisture), i.e. the essential nature of the product is changed
considerably.  Its physical composition and functiona l properties are diametrically opposed to those of
its components.   The production process is relatively complex and has to be carried out in a specially
equipped facility.  The processes are as follows :
- Reconstitution of the milk powder;
- Addition of milk fat;- Stirring of the mixture;
- Homogenization, pasteurization, boiling.
82. Consequently, reconstituted milk originates in the country where the reconstituting processes are
carried out using products of the same heading.
Chapter Note for Chapter 4 (proposed by New Zealand)
Confer originating status on "dairy products  obtained as a result of recombination or
reconstitution and dairy products obtained fr om recombined or reconstituted materials".
OPTION B: No
83. The production of reconstituted milk does not reflect last substantial transformation.
84. The process for reconstituting milk is not a particularly complex one and, above all, the product
obtained has no specially different characteristics compared with the products used, since it is alsomilk.
85. The origin criteria proposed for the product differ,  one would retain origin of the liquid milk, the
other would confer origin of the milk powder or condensed milk, from which it is produced.
Relevant HS Code:
ex 04.02 (b)
References:
41.745, 41.879.
ISSUE No. 18: OBTAINING OF CONDENSED MILKOPTION A: Yes86. Obtaining condensed milk is considered to reflect last substantial transformation.  The process (or
processes) for obtaining condensed milk from liquid milk or, by reversibility, from skimmed milk
powder or from anhydrous milk fats to which sugar or sweetening matter may or may not have been
added, is a complex one which results in a product that is completely different from the products used.The origin of condensed milk is the country where it is produced.
OPTION B: Yes, provided that :G/RO/45/Ad d.8/Rev.2
Page 21
87. The starting point for the process is liquid milk of heading 04.01.  The origin of the milk is the
country where the condensed milk is produced from liquid milk of heading 04.01.
OPTION C: No
88. Neither removal of the water contained in milk nor the addition of sugar or other sweetening
matter in any way alters the milk molecule.  The or igin of the milk is the country where the liquid
milk is obtained in its natural or unprocessed state.
Relevant HS Code:
ex 04.02 (c)
References:
41.745, 41.879
ISSUE No. 19: OBTAINING OF MILK POWDEROPTION A: Yes89. Here a solid product is obtained by removing the water contained in liquid milk.  The method of
removal is drying of the liquid milk.  The functional properties of the end product (skimmed milk
powder or whole milk powder) are a key element to be taken into account when determining
substantial transformation.  Milk powder is solid and usually anhydrous; it is richer in proteins(skimmed milk powder) and in fats (whole milk powder) than ordinary fresh milk.  In addition, it can
be kept for far longer than fresh milk - particularly skimmed milk powder which will keep for three
years if conserved under the correct conditions.  Consequently, the obtaining of milk powder fully
reflects last substantial transformation.
OPTION B: No
90. Partial or total removal of the water in milk in no  way alters the milk molecule.  The origin of the
milk is the country in which the liquid milk is obtained in its natural or unprocessed state.
Relevant HS Code:
ex 04.02 (d)
References:
41.745, 41.879.
ISSUE No. 20: OBTAINING OF MILK PRODUCTS OTHER THAN BUTTERMILK OR WHEYOPTION A: Yes91. Obtaining milk products such as yoghurt, kephir, fermented or acidified milk and the like from
liquid milk, from concentrated milk (whether or no t in powder form) or from reconstituted milk fully
reflects last substantial transformation.  Such milk products have a totally different composition from
milk.  They also have characteristics and uses that differ from those of milk.  Consequently, obtainingof these products is considered to reflect last substantial transformation.
OPTION B: NoG/RO/45/Ad d.8/Rev.2
Page 22
92. Obtaining milk products such as yoghurt, kephir, fermented or acidified milk and the like from
liquid milk, from concentrated milk (whether or no t in powder form) or from reconstituted milk does
not reflect last substantial transformation.  The origin of these products is the country where the milk
is obtained in its natural or unprocessed state.
Relevant HS Codes:
Ex04.03(a) - ex04.03(c) and 04.04
References:
41.438, 41.745, 41.879
ISSUE No. 21: OBTAINING OF BUTTERMILK AND WHEYOPTION A: Yes
93. The obtaining of buttermilk or whey fully reflects last substantial transformation.  The
manufacture of buttermilk entails skimming of milk (separation of the fat) in separators comprising a
bowl that is rotated very rapidly.  Under the effe ct of centrifugal force the fat globules, which are
lighter, gather around the rotating axis and are drawn, with a fraction of the milk, to the cream outlet.
The separation is facilitated by a stack of trunckated discs integral with the rotating axis.  The cream
separated in this way is subjected to churning in order to convert it into butter.  Churning, which
entails subjecting the cream to the action of paddles  turning rapidly in a cylinder, gives two products :
butter and a milky liquid known as buttermilk.  Whey is the combination of the natural components of
milk which remain after the fat and casein have b een eliminated.  The process for eliminating the fat
and casein in order to obtain whey is a complex one which requires considerable experience and
know-how.  These products (buttermilk and whey) ha ve a totally different composition from milk.
They also have characteristics and uses that differ from those of milk.
OPTION B: No
94. Obtaining buttermilk or whey from liquid milk, from  concentrated milk (whether or not in powder
form) or from reconstituted milk does not reflect last  substantial transformation.  The origin of these
products is the country where the milk is obtained in its natural or unprocessed state.
Relevant HS Codes:
ex04.03(b), 04.04
References:
41.438,41.745, 41.879.
ISSUE No. 22: OBTAINING OF PROCESSED CHEESE
OPTION A: Yes.95. Obtaining of processed cheese from other cheese classified in the same heading fully reflects last
substantial transformation.  The constituents of the mixtures (one or more varieties of cheese and one
or more of the following : cream or other dairy products, salt, spices, flavouring, colouring) are
chosen to give the desired flavour and colour, and are then blended with emulsifying salts, usually di-
or trisodium citrate or tetrapotassium diphosphate, and water.  The mix is heated to 80 - 85 °C for five
to eight minutes in a batch cooker, or extrusion-cooked in an equivalent process.  The cheese is then
formed into portions or slices before packaging.
OPTION B: NoG/RO/45/Ad d.8/Rev.2
Page 23
96. The process for obtaining processed cheese is a simple one which consists, purely and simply, of
mixing various sorts of cheese and melting them by means of heat or emulsifiers.
Relevant HS Code:
0406.30
References:
41.422, 41.438, 41.745
ISSUE No. 23: REMOVING EGGS FROM THEIR SHELL, COMBINED WITH OTHER
OPERATIONS
OPTION A: Yes
97. When combined with one or more other operations, the removal of eggs from their shell fully
reflects last substantial transformation, as it radically transforms the eggs and make them suitable for
specific uses.  Those operations may be cooking by steaming or by boiling in water, moulding,
drying, freezing or otherwise preserving, whether or  not containing added sugar or other sweetening
matter.
OPTION B: No
98. Removing eggs from their shell, whether or not combined with other operations, cannot reflect
last substantial transformation.  These are simple preserving processes which do not substantially alter
the eggs.
Relevant HS Codes:
0408.91, 0408.99
Reference:
41.745
ISSUE No. 24: SEPARATING EGG YOLKS FROM EGGS
OPTION A: Yes
99. Separating egg yolks from whole eggs constitutes a last substantial transformation.  It is a
complex process requiring considerable know-how and appropriate technology.  The product obtained
is different from the initial one.
OPTION B: No
100. Separating egg yolks from whole eggs does not constitute a last substantial transformation.
There is no new element to transform the two natural components of an egg: the white and the yolk.
These two components are purely and simply separated so that each can be used for its own specific
purpose.
Relevant HS Code:
0408.19
Reference:
41.745G/RO/45/Ad d.8/Rev.2
Page 24
ISSUE No. 25: PROCESSING DRIED EGG YOLKS
OPTION A: Yes
101. Processing dried egg yolks by operations such as cooking by steaming or by boiling in water,
moulding, freezing or otherwise preserving, whether or not containing added sugar or other
sweetening matter, is a last substantial transformation.
OPTION B: Yes, provided that:
102. Processing dried egg yolks does not constitute a last substantial transformation, unless carried
out in the same country as both the separation of the egg from its shell and the drying operation.
OPTION C: No
103. Processing dried egg yolks does not constitute a last substantial transformation.
Relevant HS Codes:
0408.11, 0408.19
Reference:
41.745
CHAPTER 6
ISSUE No. .26: CHANGE TO BULBS, TUBERS , TUBEROUS ROOTS, CORMS, CROWNS OR
RHIZOMES IN GROWTH OR IN FLOWER FROM A DORMANT STATE
OPTION A:  Yes
104. Change to bulbs, tubers, tuberous roots, corms, crowns or rhizomes, in growth or in flower, of
subheading 0601.20, from a dormant state (subheading 0601.10), involves a substantial
transformation.  These two types of products are substantively different in appearance, utility and
commercial, aesthetic or decorative value.  The rule should be a “CTSH”.
OPTION B:  No
105. The origin of the goods should be the country in which the dormant bulbs, tubers, etc. are
grown and harvested.  The change to dormant bulbs, tubers, etc. does not involve any substantial
transformation.
Relevant HS Code:
0601.20
Reference:
41.745
ISSUE No. 27: MANUFACTURE OF WREATHS, FLOWER BASKETS, BUTTONHOLES AND
THE LIKE
OPTION A: YesG/RO/45/Ad d.8/Rev.2
Page 25
106. The manufacture of wreaths, flower baskets, buttonholes and the like constitutes a substantial
transformation.
107. The obtaining of these products requires numerous processes such as drying, bleaching,
dyeing or matching of shapes and colours. The products obtained have different uses and
characteristics to the materials used.
108. Consequently, wreathes, flower baskets, button holes and the like originate in the country
where they are manufactured from products of the same heading 06.04.
OPTION B: No
109. The manufacture of wreaths, flower baskets, buttonholes and the like from the various
products of heading 06.04 does not constitute a substantial transformation.
110. These products can be obtained by relatively simple processes and they do not constitute new
products.
111. Consequently, the products originate in the country where their constituent plants grew.
Relevant HS Codes:
ex-06.03(a), ex-06.04(a)
Reference:
41.745
ISSUE 28: DRYING, DYEING OR BLEACHING CUT FLOWERS OR FLOWER BUDS
OPTION A: Yes
112. Drying, dyeing or bleaching cut flowers or flow er buds is a substantial transformation which
results in a new product with different characteristics and uses.
OPTION B:  No
113. Cut flowers and flower buds, whether fresh, dried, dyed, bleached or impregnated, originate
in the country in which the plants grew.
Relevant HS Code:
ex-06.03(b)
CHAPTER 7
(See also Issues Nos. 4 and 10)
ISSUE No. 29: OBTAINING POWDERED VEGETABLES
OPTION A: Yes
114. The obtaining of powdered vegetables from vege tables, including fresh, dried or freeze-dried
vegetables constitutes a substantial transformation.  The rule proposed is “CTHS”.G/RO/45/Ad d.8/Rev.2
Page 26
OPTION B : Yes, provided
115. The obtaining of powdered vegetables from vegetables, other than dried or freeze-dried
vegetables, is a substantial transformation.  Merely powdering dried vegetables is not a substantial
transformation.  The rule proposed is “CTH”.
Relevant HS Code:
ex-07.12 (a)
References:
41.422, 41.745
CHAPTER 8
(See Issues Nos. 4 and 10)
CHAPTER 9
ISSUE No 30: DECAFFEINATION OF COFFEE
OPTION A: Yes116. Decaffeination of coffee is a substantial transformation.  It is an industrial process involving
the use of various solvents which results in a commercially distinct new product which meets a
specific consumer requirement for coffee which does not contain caffeine.
117. Decaffeination is a process prior to roasting where 96% to 98% of caffeine is extracted from
the raw beans.  This process disrupts the physical and chemical structure of the beans and, therefore,
the flavour of the coffee.  The methods involved  vary with different solvent application, namely
Methylene Chloride (MC), Ethyl Acetate (EA), water process (natural) and liquid carbon dioxide
(CO2).  The final product of this decaffeinated coffee is still raw (green).  To brew this decaffeinated
coffee it has to undergo the normal roasting process.  To date, no solvent can be claimed to
specifically bind or extract caffeine substance only.  Other coffee substances will dissolve into the
solvent during the decaffeination process.  Therefor e, decaffeinated coffee tastes different from the
non-decaffeinated coffee.
118. Decaffeination brings about a change in the chemical structure of the input material.
Therefore, decaffeination should be considered as resulting in a new product which has undergone its
last substantial transformation.
OPTION B: No
119. Decaffeination is not substantial transformation because, as discussed below, it does not
affect the main characteristics of the product.
120. Coffee is a fruit from which one can obtain a beverage of certain organoleptic characteristics
(aroma, acidity, bitterness and body). These organoleptic characteristics are determined by a
combination of: the species (arabica or robusta); the place of cultivation (latitude, altitude, soil);
climate conditions (exposure to sun and rain); the methods of harvesting the beans (fruit from theplant); and the methods of processing the fruit into the green dry bean. The species  is essential
because it has a determined number of chromosomes which, in interaction with the above-mentioned
conditions, confer its main organoleptic characteristics. The harvesting and processing of coffee at the
place of cultivation determines the quality of taste and flavour, but can also result in some defectsG/RO/45/Ad d.8/Rev.2
Page 27
(e.g. overly prolonged fermentation of the bean results in an undesirable flavour) that cannot be
corrected by the decaffeination process.
121. The organoleptic characteristics are determined by the combination of the above factors and
are not modified by decaffeination. Decaffeination is the partial removal of caffeine, one of 113
elements present in coffee. Decaffeination is carried out by adding water, organic solvents orhypercritical gases. The success of the process of decaffeination relies on the partial removal of
caffeine without changing the characteristics of taste of each coffee.
Relevant HS Codes:
0901.12, 0901.22
References:
41.447, 41.504, 41.745
ISSUE No. 31: ROASTING OR TOASTING OF COFFEEOPTION A: Yes
122. Roasting of coffee is a substantial transformation.  Coffee is always roasted for use.  Roasting
consists of dry distillation with the formation of new components that produce the flavour and aroma.
The aroma results from a combination of aldehydes, alcohols and phenols.  Green coffee beans can be
stored for long periods, but in roasted coffee the aldehydes are gradually reduced and phenols and H
2S
are formed with change in flavour.  The diacetyl is converted to acetylmethylcarbinol with loss ofaroma.  This chemical change in the product should be recognised as the last substantial
transformation.  This is in keeping with similar decisions made in other chapters.
123. Roasting of coffee is done in a coffee-roasting facility at high temperatures of 200 °C-260 °C.
A complex series of reactions takes place during roasting.  The resulting chemical composition differs
radically from that of the original green beans.  Every second of roasting causes the elements of thegreen beans to decompose or to form other intermediaries.  These intermediaries include caffeine,
sugars, water, oil, protein, chlorogenic acid, tann in, caffetannin, caffeic acid, starch, trigonelline,
fibrous material, ash and traces of vitamins.
124. During roasting at above 200 °C, all moisture in the beans is expelled.  The volume of the
shells increases but there is weight loss due to loss of moisture and other volatile decomposition
products (gases, e.g. CO
2 ).  With heat, gases form in the beans and cause the shells to expand in
volume.  The colour change is caused by caramelization of the sugars.  The darker roast is due to
carbonisation.
125. The green coffee beans have been substantially transformed after roasting as follows :
(a) Loss in weight of up to 24% for the darkest roast and about 15% for the light roast, owing to
evaporation during roasting.  Moisture content is reduced to about 2% of the weight of the
roasted beans.  Unroasted beans have a moisture content of 12% - 14%.
(b) Increase in volume due to formation and expansion of gases, mainly CO 2, and other natural
fragrances (coffee).  This induces the shell to expand between 50% - 80%.  It also makes iteasier to crush the beans during the grinding process.
(c) Unroasted beans are green or yellowish (old crop), hard and taste raw (fresh crop).  The
moisture content is between 12% - 14%.  Changes in colour and texture range from light
cinnamon to very dark colour, depending on the roaster’s technology. During the roasting, theG/RO/45/Ad d.8/Rev.2
Page 28
unroasted beans change from green to light cinnamon to dark roast.  The colour depends on
individual preference or standard.
(d) Taste varies according to duration of roasting:
Cinnamon colour - nuttyMedium roast - aromatic
Dark roast - pungent and bitter fragrance.
(e) Chemical changes occur and these affect the quality of the aroma and flavour of the final
product.  After roasting, the aroma will continue to be released.
OPTION B: No126. Roasting is not substantial transformation because it does not affect the organoleptic
characteristics of the product. Coffee is wholly obtained in the place of production of the bean.
127. The organoleptic characteristics of coffee (aroma, acidity, bitterness and body) are determined
by a combination of  the chromosomic composition of the coffee species (arabica, 44 chromosomes,or robusta, 22 chromosomes), the place of cultivation (latitude, altitude, soil), climate conditions
(exposure to sun and rain), the methods of harvesting the beans (fruit from the plant) and the
processing methods of the fruit into the green dry bean. The species  is essential because it has a
determined number of chromosomes which, in interaction with the above-mentioned conditions,
confer the main organoleptic characteristics. This gives a specific chemical composition which isresponsible for the final taste. The harvesting and processing of the coffee fruit to obtain the coffee
bean determines the quality of taste and flavour and can also result in certain defects (e.g. overly
prolonged fermentation of the bean results in  an undesirable flavour) that cannot be corrected by the
roasting process.
128. The organoleptic characteristics are determined by the combination of the above factors.
These organoleptic characteristics are intrinsic in the coffee bean and cannot be modified by mere
roasting.
129. Roasting is not a substantial transformation for the following reasons:
(a) Roasting of coffee is a simple process practised since 1554, whereby dry heat is added
(between 200
o and 300o C) with the purpose of eliminating water and facilitating the
preparation of the beverage. The process is so simple it can be done at home in the stove or in
the oven, because it does not require precision with regard to temperature or its duration.
(b) In this process, no new substance is added and no new product is obtained. All the complex
biochemical reactions that are responsible for the final flavour, aroma, bitterness and acidity,
and which identify the beverage, have occurred in the geographical place where the coffee
trees are cultivated.
(c) The results of roasting depend solely on the intrinsic characteristics present in the green
coffee which depend on the genome expression (genes and environment). Consequently, the
organoleptic characteristics that can be obtained from the beverage depend entirely on the
characteristics that already existed in the green coffee. Roasting cannot create any particular
organoleptic characteristics that were  not previously in the green coffee beans.
(d) Roasting of coffee cannot be compared with cooking of other products. By the nature of the
process and the nature of the product, it can only be compared with the same process when
applied to shelled nuts and fruit.G/RO/45/Ad d.8/Rev.2
Page 29
(e) It does not alter the chemical composition of the basic organic components. For example, the
content of caffeine in the arabica green bean is 1.2%, while after roasting it is 1.3%.
Similarly, the trigonelline content is 1% before and after roasting; lipids, which are the
element determining the aroma, constitute 16.2 % in the green bean and 17% in the roasted
bean; minerals constitute 4.2% before and 4.5% after roasting.
(f) Roasting does not affect consumer preferences, but merely tries to bring out intensities in the
intrinsic qualities of each green coffee bean. So much so that beans from different origins are
roasted separately.
(g) The fact that roasting does not affect the organoleptic characteristics of the bean can be
demonstrated in several ways:
• Different coffee results from roasting different species (arabica or robusta). After
similar conditions of roasting, each group of beans shows the characteristics that
belong to its own species and geographical origin, and it is impossible to obtain the
organoleptic characteristics of one from the other.
• Different coffee results from roasting beans of the same species but grown in
different places.
• Green coffee beans are traded based on a sample of the taste of the bean.
Consequently, each bean is roasted for tasting and then sold.
• Roasting does not determine the use of coffee. Any roasted bean can be used for any
preparation (i.e. American coffee, special coffee). The difference depends on the
preparation method of the beverage and the machine used for this purpose, but in noway depends on the roasting. Moreover, roasting as opposed to blending does not
reflect consumer preference, but merely tries to bring out the qualities intrinsic in the
green bean.
130. It is important to clarify that roasting of coffee is not a dry distillation process. Distillation is a
process of separation of more volatile materials from less volatile materials by a process of
vaporisation and condensation.
Relevant HS Codes:
0901.21, 0901.22
References:
41.423, 41.447,41.504, 41.745
ISSUE No. 32: MIXTURE OF COFFEE AND COFFEE SUBSTITUTEOPTION A: Yes
131. Coffee substitutes containing coffee in any proportion are substantially different from
products obtained from pure coffee.  Mixing coffee of heading 09.01 with any other material used as
coffee substitute is origin conferring because the result of this process is a new and different product.
The rule would be “CTSH”.
OPTION B: NoG/RO/45/Ad d.8/Rev.2
Page 30
132. Adding coffee substitutes to real coffee is a simple mechanical process and it does not change
the origin of the real coffee.
133. One option for the rule is “CTH” which would mean that the country of origin is the country
where the coffee plant grew.  Under another option the country of origin is the single country in which
all components, i.e. not only the coffee but also the coffee substitute and any other ingredients, wereobtained in their natural or unprocessed state.
Relevant HS Codes:
ex 0901.90 (a)
References:
41.423, 41.504, 41.745
ISSUE No. 33: BLENDING TEA
OPTION A: Yes
134. Blending of tea leaves or tea dust substantially transforms the input used.  The finished blend
is different from the starting materials in terms of purity, grades, fragrance and flavour.  Blending is
also a process that requires great skill.  Without blending, the consistency of the tea quality could not
be guaranteed.  Each blending of tea is based on the need to satisfy a precise taste requirement on the
part of the consumer.  Consequently, the origin of blended tea is the country where the blending takes
place.
OPTION B: Yes, provided that
135. The blending is deliberate and proportionally controlled.  Clearly, only this category of blends
reflects last substantial transformation.  Other categories of blends are to be regarded as simple
mixtures which do not confer origin.  (As indicated in Basket 2 Chapter Note, the TCRO is still to
define origin criteria for blended or mixed goods)
OPTION C: No
136. The quality of tea is basically determined by the fresh leaves which contain several hundred
chemical components, such as polyphenol, protein, amino acid, vitamins, pigment enzyme, mineral
elements, etc.  Different environments produce different varieties and qualities of tea leaves.  The
origin of tea should be the country in which the plants grew.
Relevant HS Codes:
ex 09.02 (a), ex 09.02 (b)
References:
41.632, 41.745, 41.878
ISSUE No. 34:   PLACING TEA IN INDIVIDUAL BAGS
OPTION A: Yes
137. The placing of tea in tea-bags is considered a last substantial transformation.  It is a specific
process which results in a new commercial article, very different from the initial product.  This
process not only changes the presentation of the tea but, above all, makes it possible to modify theG/RO/45/Ad d.8/Rev.2
Page 31
release of the flavour.  The origin of tea in tea-bags is the country where the t ea was placed in the
bags.
OPTION B: No
138. The placing of tea in tea-bags is not a last substantial transformation.  This process does not
affect the flavour of the tea.  The flavour, taste and general quality of tea depend on where the tea was
obtained and the processing in the country where it was obtained.  The origin of tea in tea-bags is the
country where the plants grew.  The same applies to infusions presented in individual bags and
obtained from plants, parts of plants of fruits of kinds primarily used in perfumery or in medicine.
Relevant HS Codes:
ex 09.02 b) and ex 09.02 (c)
Reference:
41.745
ISSUE No. 35: CRUSHING AND/OR GRINDING
OPTION A: Yes
139. For spices of Chapter 9, crushing and/or grinding are considered to reflect the last substantial
transformation. They change the character of the goods by :
- Increasing their surface area, thereby enhancin g the transfer of flavouring agents to the
product to be flavoured;
- Releasing essential oils that are inside the seed or leaf, making these flavouring ingredients
more easily available and more intense; and
- Creating a form of the seasoning that can be precisely measured for dispensing during
cooking.
140. The same changes are obtained when crushing and/or grinding plants or parts of plants
(including seeds and fruits) of a kind used primarily in perfumery, in pharmacy or for insecticidal,
fungicidal or similar purposes, fresh or dried, whether or not cut.
141. The process therefore substantially changes those products into a new and different product.
Consequently, the origin of these products is the country where the crushing and/or grinding takes
place.
OPTION B: No
142. Crushing and/or grinding are not substantial transformations.  All the characteristics of the
spices of Chapter 9 or of the above-mentioned plants and parts of plants are determined when they are
growing.  Crushing and/or grinding merely release properties already present in those products.
Consequently, the origin is the country where the plants grew.
Relevant HS Codes:
0904.12, ex 0904.20 (a), ex 09.05 (a), 0906.20, ex 09.07 (a), ex 09.08 (a), ex 09.09 (a), ex 09.10 (b)and ex 12.11 (b).G/RO/45/Ad d.8/Rev.2
Page 32
Reference:
41.745
ISSUE No. 36: OBTAINING OF CURRY OR OTHER MIXED SPICES
OPTION A: Yes
143. Obtaining curry or other mixed spices is a last substantial transformation.  The process is
complicated, involving grinding, sieving, heating or roasting and mixing, and requires considerable
know-how in controlling the perc entage of the constituent materials to produce the right taste,
hotness, colour and flavour.  The resultant product acquires characteristics different from the original
ingredients.
OPTION B, provided that:
144. Obtaining “mixtures referred to in Note 1(b) to this Chapter” is origin-conferring for the same
reasons as given above.  But some prefer that the rule be based on:
“CTHS, provided
- the mixing changes the character of products or gives the essential character to
products; or
- the know-how of mixing (e.g. percentage of constituent materials, taste and flavour)
is indispensable; or
- the mixing is carried out through complicated processes”.
(As indicated in Basket 2 Chapter Note, the TCRO is still to define origin criteria for blended and
mixed goods)
OPTION C:  No145. Obtaining curry or other mixed spices is not regarded as origin-conferring.  The basic
characteristics of the species derive from the input ingredients (i.e. the seeds, leaves or any other parts
of the spice plants).  The origin of the mixed spices or curry should be traced back to the country in
which the spice plants are grown.
Relevant HS Codes:
ex 09.10 (a), and ex 09.10 (c)
References:
41.423, 41.745
CHAPTER 12ISSUE No. 37: OBTAINING FLOURS OF  OIL SEEDS OR OLEAGINOUS FRUITS
OPTION A: Yes
146. Flours or meals of oil seeds, or oleaginous fruits of heading 12.08 are obtained from the oil
seeds or oleaginous fruits of headings 12.01 to 12.07 by grinding.  The process gives new appearance,
form and utility to the original products and is therefore considered a last substantial transformation.G/RO/45/Ad d.8/Rev.2
Page 33
OPTION B: No
147. Grinding is considered a simple operation.  It does not change the characteristic of the
original seeds or fruits to a significant extent.  The origin of the flours or meals of oil seeds and
oleaginous fruits should be traced back to the country where the oil seed plants or the oleaginous fruitbearing plants are grown.
Relevant HS Code:
12.08
Reference:
41.745
ISSUE No. 38:   PLACING IN INDIVIDUAL BAGS PLANTS, PARTS OF PLANTS AND FRUITS
OF KINDS PRIMARILY USED IN PERFUMERY OR IN MEDICINE
OPTION A: Yes
148. The placing in individual bags of plants, parts of plants and fruits of kinds primarily used in
perfumery or in medicine is considered a last substantial transformation.  It is a specific process which
results in a new commercial article, very different from the initial product.  This process not only
changes the presentation of the products but, above all, makes it possible to modify the release of the
flavour.  The origin of plants, parts of plants and fruits of kinds primarily used in perfumery or in
medicine, in individual bags, is the country where those products were placed in the bags.
OPTION B: No
149. The placing in individual bags of plants, parts of plants and fruits of kinds primarily used in
perfumery or in medicine does not reflect the last substantial transformation.  The origin of those
products, whether or not in individual bags, is the country where the plants from which they are
derived were grown.
Relevant HS Code:
ex 12.11 (c)
Reference:
41.745
CHAPTER 13
ISSUE No. 39: COLLECTION OR EXTRACTION OF LAC, NATURAL GUMS, RESINS,
GUM-RESINS, OLEORESINS, VEGETABLE SAPS AND EXTRACTS
OPTION A: Yes150. The collection or extraction of lac, natural gu ms, resins, gum-resins, oleoresins, vegetable
saps and extracts is a substantial transformation.  Obtaining these products entails skilful operationson the various plants which bear them.  The products collected or extracted are, moreover, completely
different from the plants from which they are obtained.  Consequently, the origin of these products is
the country where they are collected or extracted from the plants which bear them.  The origin
criterion is therefore expressed by a “Change-of-Chapter” rule.G/RO/45/Ad d.8/Rev.2
Page 34
OPTION B: No
151. The collection or extraction of lac, natural gu ms, resins, gum-resins, oleoresins, vegetable
saps and extracts is not a substantial transformation.  The necessary processes do not present any
particular difficulty : often it is simply a matter of collecting  or obtaining by spontaneous exudation,by incision or by draining using solvents.  Consequently, the origin of these products is the country
where the plants from which they come grew.
Relevant HS Code:
13.01
Reference:
41.745
CHAPTER 14ISSUE No.40: OBTAINING VEGETABLE PLAITING MATERIALS OR VEGETABLE
PRODUCTS OF HS CHAPTER 14
OPTION A: Yes
152. Obtaining vegetable materials, primarily used for plaiting, stuffing or padding or in brooms or
brushes, is a substantial transformation.  The collection of these materials from the plants whence they
come requires considerable work and special operations.  Products obtained in this way are intended
for highly specific uses.
153. Consequently the origin of these products is the country in which they were collected from
the plants.  The origin criterion is therefore expressed by a change of Chapter rule.
OPTION B: No
154. Obtaining vegetable materials, primarily used for plaiting, stuffing or padding or in brooms or
brushes, is not a substantial transformation.  The operations which must be carried out to remove them
from plants does not present any specific difficulty.
155. Consequently, the origin of the vegetable materials of Chapter 14 is the country in which the
plants grew.
Relevant HS Codes:
1401.10, ex 1404.20(c), 1401.90,14.02, 14.03, 14.04
Reference:
41.745
ISSUE No. 41:   OBTAINING THE CORE OR PEEL OF RATTAN CANE
OPTION A: Yes
156. Obtaining the core or peel of rattan cane is a substantial transformation. shaping for plaiting
purposes.  In addition, the products obtained have special properties and are intended for more
specific uses.G/RO/45/Ad d.8/Rev.2
Page 35
157. The origin of the core or peel of rattan is therefore the country where they are obtained from
the rattan cane.  The origin criterion is expressed by a change of split subheading.
OPTION B: No
158. Obtaining the core or peel of rattan cane is not a substantial transformation.  The operations to
obtain these products are not particularly complex.  The products obtained are not products with truly
new characteristics.
159. Consequently, the origin of the core or peel of rattan is the country in which they were
collected from the plants concerned.  The origin criterion is therefore expressed by a change of
Chapter rule, or the country in which the plant grew.
Relevant HS Code :
Ex 1401.20 (a)
Reference:
41.745
ISSUE No.42: COATING RATTAN CANE, CORE OR PEEL WITH PVC
OPTION A: Yes
160. Coating rattan cane, core or peel with PVC is a substantial transformation.  The PVC coating
results in a new product with specific uses, greater strength and more durability.  The origin of the
cane, core or peel of rattan coated with PVC is therefore the country in which these products are
obtained from rattan cane, core or peel.  The origin criterion is therefore expressed by a change of
split subheading rule.
OPTION B: No
161. Coating rattan cane, core or peel with PVC is  not a substantial transformation.  The operations
required for this purpose are not particularly complex.   The products obtained do not have truly new
characteristics.
162. The origin of the PVC-coated cane, core or peel of rattan is therefore the country in which the
coated materials were collected from the plants when ce they come.  The origin criterion is therefore
expressed by a change of Chapter rule, or the country in which the plant grew.
Relevant HS Code:
ex 1401.20(b)
Reference:
41.745
ISSUE No. 43: PRODUCTION OF PIG OR POULTRY FAT FROM RAW PIG OR POULTRY
FAT
OPTION A:  No
163. The obtaining of pig or poultry fat from raw fat of heading 02.09 is a process which does not
modify the characteristics of the unrendered fat.  Moreover, given that the melting of other fats ofG/RO/45/Ad d.8/Rev.2
Page 36
heading 15.02 is generally excluded as conferring origin (the raw and melted fats being classified
together in heading 15.02), it is proposed to exclude changes from heading 02.09 to heading 15.01.
OPTION B:  Yes
164. The change from animal materials of Chapter 2 to the fats of heading 15.01 is considered to
result in substantial transformation.
Relevant HS Code:
15.01
ISSUE NO. 44: OBTAINING CLEAVAGE PRODUCTS OF HEADING 15.03 FROM ANIMAL
FATS
OPTION A:  Yes
165. Substantial transformation of fats takes place when cleavage products, including stearins, oleo
oils and tallow oils, are extracted from animal fats.
OPTION B : No
166. The physical separation of these products does not change their principal character as animal
fats.
Relevant HS Code:
15.03
Reference:
41.745
ISSUE NO. 45: REFINING (RE-REFINING) OF FATS AND OILS:OPTION A: Yes(1) Refining of crude oils
167. Crude oils are not suitable for direct consumption or for specific technical purposes because
of their acidity and their organoleptic characteristics.  To make them suitable for consumption or usefor specific technical purposes, they have to be refined.  The refining process (chemical or physical)
entails eliminating the odour, taste, colour and acidity of a crude oil.
168. This process is considered to reflect the last substantial transformation when at least:
(a) all the following operations are carried out on crude oils in a single country:
- Neutralization with alkali or de-acidification (removal of the free fatty acids
from the oil);
- Decolorizing (removal of colouring substances); and
- Deodorizing (separation of the volatile odorous and flavourous substances by
distillation) (EC, EGY, JPN).
(b) three of the following operations are carried out on crude oils in a single country:G/RO/45/Ad d.8/Rev.2
Page 37
- neutralization with alkali or de-acidi fication (removal of the free fatty acids
from the oil);
- decolorizing (removal of colouring substances);
- deodorizing (separation of the volatile odorous and flavourous substances by
distillation);
- stabilization (AUS, CH, MEX, NOR, SG, TH, TUN).
169. The origin of a refined oil is the country where it was refined from a crude oil (AUS, CH, EC,
EGY, JPN, MEX, NOR, SG, TH1)
(2)  Refining of crude fats
170. Crude fats are not suitable for direct consumption or for specific technical purposes because
of their acidity and their organoleptic characteristics.  To make them suitable for consumption or use
for specific technical purposes they have to be refined.  The refining process (chemical or physical)
entails eliminating the odour, taste, colour and acidity of a crude fat.
171. The origin of a refined fat is the country where it was refined from a crude fat (AUS, JPN,
MEX).
(3) Re-refining of oils
172. There is also a substantial transformation when the processes mentioned in 2 (a) or (b) above
are applied to an oil that is already refined.  Even when refined, certain oils are still unsuitable for
consumption and, more particularly, are unsuitable for specific technical purposes.  That is why theyare re-refined.
173. Re-refining is intended mainly to correct de ficiencies remaining from the first refining
process, e.g. to remove levels of iron or other impurities to meet quality standards.
174. Consequently, the origin of a re-refined oil is the country where it is re-refined (EGY) (CH).
OPTION B: No
175. Fats and oils occur widely in nature and are formed in the cells of certain plants or animals
from which they are extracted by various means such as pressure or use of solvents.
176. The essential characteristics of fats and oils and their essential molecular structure as a
compound are formed in the source material and they are also present unaltered in the extracted oil in
crude form.  These essential characteristics are not changed by refining.
177. Refining is done to remove impurities such as solids and free fatty acids from the crude oils.
Odour and colour are improved through the process of bleaching and deodorizing.  However, these
are merely physical changes.  The refining process does not affect the chemical properties and
molecular structure of the oil itself, even at this st age when an oil is referred to as having been fully
refined.
178. Obviously, if refining does not modify the essential characteristics of an oil, re-refining
cannot modify those characteristics and, consequently, cannot constitute a last substantial
transformation.
                                                     
1 See table under "HS codes concerned".G/RO/45/Ad d.8/Rev.2
Page 38
179. The origin of a fat or oil is the country where it was extracted from animals or plants (ARG,
BRA, CAN, COL, IND, KOR, MAL, MOR, PHI, SEN, US)2 .
HS Codes concerned:
HS Codes Refining Re-refining
Yes No Yes No
15.01 and 15.023AUS, JPN, MEX, TUN BRA, CAN, CH, KOR, MAL,
PHI, SG, TH,  US,
15.03 AUS, JPN, MEX, TH, TUN BRA, CAN, CH, KOR, MAL,
PHI, SG, US,
15.04 AUS, CH, EC, EGY, JPN,
MEX, NOR, TH, TUNBRA, CAN, KOR, MAL, PHI,
SG, USCH, EGY AUS, BRA, CAN, EC, JPN, KOR,
MAL, MEX, NOR, PHI, SG, TH, US
15.05 AUS, CH, EGY, JPN, MEX,
NOR, SG, TH, TUN ,BRA, CAN, KOR, MAL, PHI,US
15.06 AUS, CH, EC, EGY, JPN,
MEX, NOR, TUNBRA, CAN, KOR, MAL, PHI,
SG, TH, US
15.07 AUS, CH, EC, EGY, JPN,
MEX, NOR, SG, TUNARG, BRA, CAN, IND, KOR,
MAL, PHI, TH, USEGY ARG, AUS, BRA, CAN, CH, EC,
IND, JPN, KOR, MAL, MEX, NOR,
PHI, SG, TH, US
15.08 AUS, CH, EC, EGY, JPN,
MEX, NOR, SG, TH, TUNARG, BRA, CAN, IND, KOR,
MAL, PHI, SEN, US
15.09 and 15.10 AUS, CH, EC, JPN, MEX,
NOR, SG, TH, TUNARG, BRA, CAN, KOR, MAL,
MAR, PHI, US
15.11 AUS, CH, EC, EGY, JPN,
MAL, MEX, NOR, SG, TH,
TUNARG, BRA, CAN, COL, IND,
KOR, PHI, USEGY ARG, AUS, BRA, CAN, CH, COL,
EC, IND, JPN, KOR, MAL, MEX,
NOR, PHI, SG, TH, US
15.12 AUS, CH, EC, EGY, JPN,
MEX, NOR, SG, TH, TUNARG, BRA, CAN, IND, KOR,
MAL, PHI, USEGY ARG, AUS, BRA, CAN, CH, EC,
IND, JPN, KOR, MAL, MEX, NOR,PHI, SG, TH, US
15.13 AUS, CH, EC, EGY, JPN,
MAL, MEX, NOR, SG, TH,
TUNARG, BRA, CAN, IND, KOR,
PHI, SEN, USEGY ARG, AUS, BRA, CAN, CH, EC,
IND, JPN, KOR, MAL, MEX, NOR,
PHI, SEN, SG, TH, US
15.14 AUS, CH, EC, EGY, JPN,
MEX, NOR, SG, TH, TUNARG, BRA, CAN, IND, KOR,
MAL, PHI, SEN, US
15.15 AUS, CH, EC, EGY, JPN,
MEX, NOR, SG, TH, TUNARG, BRA, CAN, KOR, MAL,
PHI, USCH, EGY ARG, AUS, BRA, CAN, CH, EC,
JPN, KOR, MAL, MEX, NOR, PHI,SG, TH, US
15.16 AUS, CH,  EGY, MEX, NOR,
NZ, SG, TUNCAN, KOR, MAL, PHI, US
15.21 (a) CH, EC, EGY, NOR, TUN CAN, JPN, KOR, MAL, MEX,
PHI, TH, US
References:
41.504, 41.505, 41.531, 41.632, 41.735, 41.745, 42.284, 42.284/Rev., 42.574, Annex C/1 toDoc. OC0030E1.
ISSUE No. 46:  OBTAINING FRACTIONS OF FATS OR OILSOPTION A:  Yes180. Substantial transformation takes place when oils and fats are fractionated.  Fractionation of
the oils and fats, including the following, involves substantial transformation :
(a) Refined, bleached and deodorized (RBD ) palm olein to RBD palm mid fraction;
(b) RBD palm kernel oil to RBD palm kernel stearin;
(c) RBD palm kernel oil to fully refined palm kernel oil fraction.
                                                     
2 See table under "HS codes concerned".
3 EC will confirm its position.G/RO/45/Ad d.8/Rev.2
Page 39
Fractionation process
181. Vegetable oils are fractionated to yield a hard fraction with a melting point of 30°C to 38°C.
This hard fraction is suitable for the manufacture of confectionery products such as compound
chocolates, filling creams, caramels and toffees.  Three methods are commercially available tofractionate vegetable oils.  These are:
(a) Physical fractionation(b) Detergent fractionation
(c) Solvent fractionation.
Crystallization
182. The input, RDB palm olein or RBD palm kernel oil , is mixed with a warm solvent (acetone)
and then cooled down at a controlled rate in a specially designed crystallizer.  When the desired
temperature is reached, the high-melting-point fraction crystallizes leaving behind the low-melting-
point fraction in solution.  Proper control of the oil content, moisture content, cooling rate and the
rotation speed of the agitator (stirrer in the crystallizer) is essential for the formation of stable fatcrystals.
Filtration
183. The mixture or slurry (suspension of fat crystals) is then charged into a special vacuum filter
to separate the fat crystals from the solution.  After filtration, the cake (fat crystals) is removed bywashing with the solvent.  Proper control of the vacuum and temperature of the washing solvent is
important to ensure that the low-melting-point fraction is completely removed from the cake.
Solvent recovery
184. The altered fat crystals are heated under vacuum in a special chamber to remove the residual
solvent.  The solvent is also recovered from the lo w-melting-point fraction by the same process.  The
recovered solvent is then recycled back to the crystallizer after passing through a distillation unit to
remove any residual moisture.  Proper control of temperature and vacuum in the distillation unit is
important to ensure that the moisture content of the solvent is kept low.  The filtered fat crystals are
recovered as either RBD palm mid fraction, RBD palm kernel stearin or fully refined palm kernel oil
fraction, depending on the input used.
185. The input has been substantially transformed into a new and different product for specific use.
Before fractionation, the RBD palm olein is a liquid at room temperature with a melting point of not
more than 24°C while the RDB palm kernel oil has a melting point of 25°C-29°C, which constitutes
as a liquid oil at room temperature.  After fracti onation, the RDB palm olein and RDB palm kernel oil
are substantially transformed into a crystal fat with a melting point of 30°C-38°C.  The specific
melting point of the product obtained as a result of the fractionation process is critical to its use in theconfectionery industry.
186. The resultant products can be used alone or blended with other vegetable fats to make
products like compound chocolates, filling creams, caramels or toffees.  In addition, RDB palm kernel
stearin and fully refined palm kernel oil fraction command a high premium over the raw material with
a 50 %-60 % increase in price due to the intricate and costly process involved. (SG)
OPTION B:  No
187. Fractionation does not result in substantial transformation of the input materials.G/RO/45/Ad d.8/Rev.2
Page 40
188. The determination of substantial transformation should focus on the animal fats and oils as
the specific product and on whether or not they are transformed by a specific process.
189. In this context, fractionation does not constitute substantial transformation.  Fractionation is a
physical process which merely segregates a substance or mixture into its components.  Such
separation of components is sometimes applied to separate impurities from a product in such a way asto have an effect similar to refining.
190. The methods employed in fractionation include :
(a) Solvent fractionation : A process in which on e or more components are removed from a liquid
through contact with another liquid which dissolves unwanted substances.
(b) Crystallization : A process of crystal formation and accretion
(c) Filtration : A process of separating suspended solids from a liquid by forcing a mixture
through a porous barrier.
191. When applied to vegetable fats and oils, these operations result in segregating solids and fatty
acids from the oil itself.  These acids and solids constitute a very insignificant component of the input
materials.  The fractionation process does not affect the molecular structure of the oils and fats.
192. Fractionation therefore cannot be considered a substantial transformation.  The HS
Explanatory Notes to Chapter 15 state that fractionation does not cause any changes in the chemical
structure of fats and oils (CAN, PHI, US).
Relevant HS Code:1
CHAPTER 15References:
41.531, 41.735, 41.745, 41.869, 42.284/Rev., 42.574
Relevant HS Code:
15.01
ISSUE No. 47:    RE-REFINING OR FURTHER REFINING (TCRO DRAFT ONLY)
OPTION A:  Yes
193. Re-refining is a second refining operation undertaken to correct deficiencies remaining from
the first refining process, e.g., to remove levels of iron or other impurities to meet quality standards.
This process is principally for palm olein and palm stearin.  It is one of several modifications which
may be required, depending upon the end product, which is a final process in substantially
transforming the characteristics of the oil.  (See related proposal applicable to heading 15.04 and
subheading 1515.90 concerning the combination of re-refining, deodorising and barrelling).
OPTION B:  No
194. These are considered simple processes.  All these oils are recognizable as oils when in their
crude state, and the essential characteristics that define them throughout the manufacturing process
odour, flavor, mechanical properties - remain the same.  In this sense, refining, however it is define d,
serves to prolong the shelf life of the oil and sometimes to remove impurities and sometimes
undesirable taste elements.G/RO/45/Ad d.8/Rev.2
Page 41
Relevant HS Codes:
15.01 to 15.15
References:
41.745; 41.632, 41.869
ISSUE No. 48:   RE-DEODORIZING REFINED OILS  (TCRO DRAFT ONLY )
OPTION A:  Yes
195. Refined oils can be re-deodorized, or steam stripped,  to further remove impurities followed
by treatment with citric acid and antioxidant to improve the stability of the oil.  The process also
improves the color and flavor of the oil. (See related proposal applicable to heading 15.04 and
subheading 1515.90 concerning the combination of re-refining, re-deodorising and barrelling).
OPTION B:  No
196. The re-deodorization of refined oils results in improvements to shelf life and other qualities ,
but does not bring about changes in the characteristics inherent in the oil.  There is, accordingly, no
substantial transformation of the input refined oils when they are subjected to re-deodorization.
Relevant HS Codes:
15.01 to 15.15
References:
41.745; 41.632, 41.869
CHAPTER 16
ISSUE NO. 49: MANUFACTURE OF PRODUCTS CLASSIFIED IN CHAPTER 16 FROM MEAT,
OFFAL, BLOOD, FISH, CRUSTACEANS, MOLLUSCS OR OTHER AQUATIC
INVERTEBRATES OF CHAPTER 2 OR 3
OPTION A: Yes197. The obtaining of food preparations, preserved products, extracts or juices of meat, offal,
blood, fish, crustaceans, molluscs, aquatic invertebrates, caviar or caviar substitutes classified in
Chapter 16 from meat, offal, blood, fish, crustaceans, molluscs, aquatic invertebrates or fish eggs of
Chapter 2 or 3 is considered to be a last substantial transformation.
198. Consequently, the origin of these products is the country where they were obtained from
meat, offal, blood, fish, crustaceans, molluscs or aquatic invertebrates of Chapter 2 or 3.
OPTION B: Yes, provided:
199. The change to Chapter 16 is not solely the result of seasoning or the addition of preservatives
or curing and/or smoking and cooking.
OPTION C: Yes, provided:
- The change to Chapter 16 is not only the result of seasoning or the addition of preservatives;
orG/RO/45/Ad d.8/Rev.2
Page 42
-  The products to be considered as food preparations meet one of the following criteria :
(a) Products to be consumed directly by the ultimate purchaser and normally sold to the ultimate
purchaser in places such as department stores, supermarkets, conventional markets, etc.
(b) Intermediate products which meet one of the following requirements and are to be used in the
food industry :
(i) Products made through processes which are commonly used for manufacturing
intermediate products for the food industry  for the purpose of enhancing suitability
for mechanical production and lowering production costs in subsequent processes.
(ii) Products whose ingredients are homogenized so that the said ingredients are not
technically or economically able to be separated.
(iii) Products which are transformed into those with the essential character of specific
prepared products through the addition of material or a component, regardless of thequality of the added material or component.
OPTION D: Yes, provided:200. They are not:
- Prepared or preserved meat, offal or blood, not cooked; or
- Raw fillets, merely covered with batter or breadcrumbs, whether or not prefried in oil, frozen.OPTION E: Yes, provided:201. Production of goods classified in Chapter 16 is a substantial transformation except products
that are obtained only by seasoning or preservation.  Making sausages and similar products from
meat, meat offal or blood by adding seasonings and preservatives is not a complex process.  The basic
ingredient is meat, usually in minced form combined  with other filling, seasoning and/or preservatives
in some form of sausage casing.  The addition of seasoning or preservatives does not change the
nature of the basic product (meat) and is used for flavouring and shelf-life purposes.
202. Production of goods classified in Chapter 16 is substantial transformation, except products
that are only cured and/or smoked and cooked.  The process of cooking such products whether or not
resulting in change of chapter is not considered to be an origin conferring process.
OPTION F: No
203. The obtaining of food preparations, preserved products, extracts or juices of meat, offal,
blood, fish, crustaceans, molluscs, aquatic invertebrates, caviar or caviar substitutes classified in
Chapter 16 from meat, offal, blood, fish, crustaceans, molluscs, aquatic invertebrates or fish eggs of
Chapter 2 or 3 is not considered to be a last substantial transformation.
204. Consequently, the origin of these products is the country of origin of the animals from which
they are obtained.
Relevant HS Code:
16.01 to 16.05G/RO/45/Ad d.8/Rev.2
Page 43
Reference:
41.745
ISSUE NO. 50: OBTAINING PRODUCTS CLASSIFIED IN CHAPTER 16 FROM OTHER
PRODUCTS CLASSIFIED IN THE SAME CHAPTER
OPTION A: Yes205. Obtaining products classified in Chapter 16 from other products classified in the same
Chapter is considered a last substantial transformation.
206. Consequently, the origin of these products is the country where they were obtained in this
way.
OPTION B: Yes, provided:
207. Production of goods classified in Chapter 16 is a substantial transformation, except products
that are obtained only by seasoning or preservation.  Making sausages and similar products from
meat, meat offal or blood by adding seasonings and preservatives is not a complex process.  The basicingredient is meat usually in minced form combined  with other filling, seasoning and/or preservatives
in some form of sausage casing.  The addition of seasoning or preservatives does not change the
nature of the basic product (meat) and is used for flavouring and shelf-life purposes.
208. Production of goods classified in Chapter 16 is substantial transformation except products that
are only cured and/or smoked and cooked.  The process of cooking such products whether or notresulting in change of chapter is not considered to be an origin conferring process.
OPTION C : No
209. Obtaining products classified in Chapter 16 from other products classified in the same
Chapter is not considered a last substantial transformation.
210.
 Consequently, the origin of these products is the country of origin of the animals from which
they are obtained.
Relevant HS Codes:
16.01 to 16.05
Reference:
41.745
CHAPTER 17ISSUE No. 51: EXTRACTION OF RAW SUGAR
OPTION A: Yes
211. The process of extracting sugar from sugar cane or sugar beet is a substantial transformation.
Quite apart from the complexity of this process, the characteristics, form and use of the product
obtained are different from those of the initial product.  The origin of the sugar is the country wherethe sugar is extracted.G/RO/45/Ad d.8/Rev.2
Page 44
212. This reasoning applies, mutatis mutandis, to sugars extracted from molasses and sugars other
than cane or beet sugar.
OPTION B: No
213. The extraction of raw sugar does not constitute substantial transformation. Cane sugar is
sucrose which is formed in the sugar cane plant. Since cane deteriorates immediately after harvesting,
the juice extraction and raw sugar manufacture have to be concurrent to avoid the deterioration of the
sucrose in the cane juice. As such, cane harvesting, juice extraction and recovery of this sucrose in the
form of raw sugar are technically inseparable operations in the sugar process.
214. All steps in the sugar process are aimed at th e recovery of sucrose. The steps in milling
include juice extraction, juice clarification, evaporation, crystallisation and centrifugation. Theseoperations, while giving cane juice the crystalline form of raw sugar, do not alter the basic sweetening
properties of the sucrose molecule that has been form ed in the cane plant. Afte r milling, the resulting
product referred to as raw sugar already contains sucrose of 97.5 %.
215. Raw cane sugar is an interim stage in the sucrose recovery process.  Whatever incidental uses
there may be for raw sugar, these are possible only because of its sucrose content. It is sucrose thatmakes raw sugar usable for such purposes as animal feed, or alcohol manufacture.
216. As regards beet sugar, there does not exist a raw sugar stage. All sugars produced from beet
are white sugars with characteristics approximating that of refined sugar.
217. Whether the process of extraction of raw sugar is simple or complex is not a criterion for
substantial transformation. The origin of raw sugar is therefore the country where cane or beet aregrown.
218. This reasoning applies, mutatis mutandis, to sugars other than cane or beet sugar.
Relevant HS Codes:
1701.11, 1701.12, ex 17.02 (d) and ex 17.02 (e)
References:
41.745, 41.871 and 41.898
ISSUE No. 52:   ADDING FLAVOURINGS OR COLOURING MATTER TO CANE OR  BEET
SUGAR
OPTION A: Yes
219. The addition of flavourings or colouring matter to cane or beet sugar reflects the last
substantial transformation.  It is a controlled technological process.  The necessary dose for flavouring
or colouring a given quantity of sugar must be calculated carefully and exactly, otherwise the product
obtained would not be properly flavoured or coloured and hence would not meet the specific needs for
which it was prepared.
OPTION B: No
220. The addition of flavourings or colouring matter to cane or beet sugar does not reflect the last
substantial transformation.  It is an addition of materials intended to modify the flavour or shade
without actually altering the sugar’s intrinsic characteristics.G/RO/45/Ad d.8/Rev.2
Page 45
Relevant HS Code:
1701.91.
Reference:
41.745.
ISSUE No. 53: REFINING OF SUGAR
OPTION A: Yes221. Refining sugar is a substantial transformation. During this process, the raw sugar crystals,
composed of sucrose and other materials, are completely broken down to a molecular level. The rawsugar loses its physical aspect and chemical identity during this process and the refined sugar crystals
that emerge are a new and different product.
Change in use
222. Raw sugar is more than an intermediate product used to manufacture refined sugar.  It is used
for many other commercial purposes, including cement manufacturing, animal feed and ethanol
production. Refined sugar is used almost exclusively as a food product. Thus, refined sugar has uses
that are completely different from those of raw sugar.
Change in character
223. The refining process effects a fundamental change in the structure and chemical makeup of
raw sugar. Raw sugar is composed of crystals that contain sucrose with other materials occluded
within the crystal and incorporated  in the crystal lattice structure. The mixture surrounding the crystal
is composed of various organic and inorganic subs tances. During the refining process the crystal
structures in the raw sugar are completely broken do wn to molecular constituents so as to completely
lose their physical identity. The refined sugar that emerges is composed of new sucrose crystals that
no longer contain non-sucrose materials occluded within the crystals. In addition, non-sucrose
materials mixed with and coating the raw sugar crystals are removed in refining through extensive
processing operations involving both chemical and physical reactions and changes. As a result, raw
and refined sugar are fundamentally different products with significant differences in crystal structure
and size, colour, odour, texture, bacterial level, chemical makeup, taste and shelf-life.
224. It should be noted  that this operation is also considered substantial for the other sugars
classified in the different split headings of heading 17.02.
OPTION B: No
225. Refining raw sugar does not constitute substantial transformation. Raw sugar already has a
sucrose content of 97.5 %.  Much of the impurities in the cane juice would have been removed in thecrystallisation process at the raw sugar stage. The refining process, which employs such steps as
affination, melting, filtration, colour absorption and recrystallisation, while further removing
impurities raises sucrose content only marginally from 96 %- 99 % in raw sugar to 99.5 % or higher
in refined sugar. In this connection, the Explanatory Notes state that «_raw sugar may, however, be of
such a high degree of purity that is suitable for human consumption without refining_».
226. The sugar refining process does not alter the original sucrose formed in the cane plant which
gives sugar its essential character as a sweetener. The chemical reactions which occur in refining
affect only the non-sucrose components but pr eserve the original sucrose molecule.G/RO/45/Ad d.8/Rev.2
Page 46
227. The simplicity or complexity of a process, including sugar refining, is not a criterion to
determine substantial transformation.
228. Also, as in the case of beet sugar, it is now possible to produce directly from cane juice white
cane sugar with characteristics that are very close to refined sugar without passing the raw stage.
These developments have made the boundary between cane, raw sugar and refined sugar obscure.
229. Therefore, the origin of refined sugar should be the country where the cane or beet grew.
Relevant HS Codes:
1701.91, 1701.99, ex17.02(a), ex17.02(b), ex17.02(d)
References:
41.004, 41.505, 41.724, 41.745, 41.871, 41.898 and 41.899
ISSUE No. 54: OBTAINING CHEMICALLY PURE SUGAR
OPTION A: Yes230. Obtaining chemically pure fructose, lactose, maltose or glucose from raw or refined sugar is a
last substantial transformation.  The origin of chemically pure sugar is the country where the
purification process took place.
OPTION B: No
231. Obtaining chemically pure fructose, lactose, maltose or glucose from raw or refined sugar is
not a last substantial transformation.   Alternatives for the origin of chemically pure sugar are:
- the country where the raw material (from which the fructose, lactose, maltose or glucose were
extracted) was obtained;
- The country in which the fructose, lactose, maltose or glucose was extracted.Relevant HS Code:
ex 17.02 (a)
Reference:
Doc 41.745
ISSUE No. 55: MANUFACTURING OF INVERT SUGAR
OPTION A: Yes232. Manufacturing of invert sugar by hydrolysis of refined sugar solutions (sucrose) is a last
substantial transformation.  Invert sugar consists of equal parts of glucose and fructose.  The
manufacturing process consists of acidic or enzymatic hydrolysis.  This is a complex process and
results in a product that has new characteristics and specific uses.
233. Consequently, invert sugar originates in the coun try where it was obtained from sugars of the
same tariff heading.
OPTION B: Yes, provided:G/RO/45/Ad d.8/Rev.2
Page 47
234. Alternative conditions are proposed :
- Invert sugar is obtained from raw sugar of heading 17.01 or from other sugars of heading
17.02.
- Invert sugar is in solid state or it is obtained from sugars of other headings.
- Invert sugar is obtained from sugars of other headings.
OPTION C: No235. Production of invert sugar is not a substantial transformation.  Alternate origin criteria are
proposed :
- the country of extraction of sugars that served as a material to produce invert sugar;
- the country of origin of materials from which those sugars were extracted.
Relevant HS Codes:
ex 17.02 (b) and ex 17.02 (c)
Reference:
41.745
ISSUE NO. 56: OBTAINING SUGAR SYRUPS, SUGAR JUICES, SUGARS AND
CARAMELISED MOLASSES OF SPLIT HEADING ex 17.02(e)
OPTION A: Yes, provided:
236. The goods are produced from cane or beet sugar of heading 17.01 or molasses of 17.03.
Otherwise there is no substantial transformation.
OPTION B: No
237. Obtaining of the goods cannot reflect the last substantial transformation.  The country of
origin of the sugar syrups and juices remains the country where  -
Alternatives:
- the sugar was extracted;
- the cane or beet were grown.
Relevant HS Code:
ex 17.02 (e)
Reference:
41.745
ISSUE No. 57:  OBTAINING MOLASSES BY EXTRACTION OR REFINING OF SUGARSOPTION A: Yes238. Obtaining molasses from the processes of extracting or refining of sugars of heading 17.01 is
a last substantial transformation.G/RO/45/Ad d.8/Rev.2
Page 48
239. Consequently, molasses should be considered as originating in the country where the sugar
extraction or refining processes took place, i.e. from the sugars of heading 17.01.
OPTION B: Yes, provided
240. Molasses are produced from plants.  Obtaining molasses by refining of sugars is not
substantial transformation.
241. Consequently, molasses should be considered as originating in the country where it was
obtained from plants.
OPTION C: No
242. Obtaining molasses from the processes of extracting or refining sugars is not a last substantial
transformation.
243. Consequently, molasses should be considered as originating in the country where the plant
grew.
Relevant HS Code:
17.03
Reference:
41. 745
CHAPTER 18:
ISSUE No. 58:  OBTAINING COCOA PASTE
OPTION A:  Yes244. Cocoa paste is obtained by grinding roasted cocoa beans. The grinding results in the last
substantial transformation.  The rule should be “CTH”.
OPTION B:  No
245. Grinding cocoa beans is not a substantial transformation.  The country of origin of cocoa
paste is the country of origin of the raw cocoa b eans.  The rule should be “CTH except from headings
18.01 or 18.02”.
Relevant HS Code:
18.03
References:
41.531, 41.745
ISSUE No. 59:  OBTAINING COCOA BUTTER, FAT OR OIL
OPTION A:  Yes246. Cocoa butter is obtained by hot-pressing cocoa beans or cocoa paste.  Cocoa fat is obtained
from spoiled cocoa beans or from cocoa waste (such as shells, husks etc.) by pressure or by extractionG/RO/45/Ad d.8/Rev.2
Page 49
with solvents.  These processes result in a substant ial transformation.  The rule for the heading should
be “CTH”.
OPTION B:  Yes, but only for cocoa fat and oil
247. Obtaining cocoa fat or oil from cocoa waste is a substantial transformation.  However,
obtaining cocoa butter from cocoa paste is not a substantial transformation  The rule should be “CTH
except from heading 18.03”.
Relevant HS Code:
18.04
References:
41.745, 41.539
ISSUE No. 60: OBTAINING UNSWEETENED COCOA POWDER FROM COCOA PASTE
OPTION A:  Yes248. Production of unsweetened cocoa powder involves a substantial transformation.  It is obtained
by pulverising the cocoa paste to produce a product with new characteristics.  The rule proposed is
“CTH”.
OPTION B:  Yes, provided
249. Production of unsweetened cocoa powder (except fr om wholly or partly defatted cocoa paste
of subheading 1803.20) involves a substantial transformation.  The rule proposed is “CTH, except
from subheading 1803.20”.
250. Defatted cocoa paste is already in powder form or requires only minor processing to obtain
cocoa powder.  This is not considered to be a substantial transformation.
OPTION C:  No
251. Production of cocoa powder cannot be considered as a substantial transformation.  Some
consider that the origin should be the country of or igin of the cocoa paste.  Others consider that the
country of origin of the cocoa powder is the countr y in which the cocoa beans are obtained.  The rule
proposed is “CTH, except from heading 18.03”.
Relevant HS Code:
18.05
ISSUE No. 61: ADDING SUGAR OR OTHER SWEETENING MATTER TO UNSWEETENED
COCOA POWDER
OPTION A:  Yes252. Production of cocoa powder, containing added sugar or other sweetening matter, from
unsweetened cocoa powder involves a substantial transformation.  It is obtained by pulverising thecocoa paste to produce a product with new characteristics.  The rule proposed is “CTH”.
OPTION B:  NoG/RO/45/Ad d.8/Rev.2
Page 50
253. Production of sweetened cocoa powder by adding  sugar to unsweetened cocoa powder is not
a substantial transformation.  The rules proposed are “CTH, except from heading 18.05”.and “CTH,
except from Chapter 17 or from heading 18.05”.
OPTION C:  No
254. Production of sweetened cocoa powder from unswe etened cocoa powder or paste is not a
substantial transformation.  Adding, sugar to cocoa powder does not modify the characteristics of the
cocoa powder.  Furthermore, obtaining powder from cocoa paste is not substantial because it results
from grinding. The rule proposed is therefore “CTH, except from headings 18.03 or 18.05”.
Relevant HS Code:
1806.10
References:
41.539, 41.745
ISSUE No. 62: MAKING COCOA PREPARATIONS (OTHER THAN SWEETENED COCOA
POWDER) IN LIQUID, PASTE, POWDER OR GRANULAR FORM, OF A CONTENT
EXCEEDING 2KG, FROM COCOA POWDER
OPTION A:  Yes
255. Processing cocoa, including cocoa powder whether or not sweetened, into the cocoa
preparations in liquid, paste, powder or granular form, in containers or immediate packings of a
content exceeding 2kg, of subheading 1806.20 is a substantial transformation.  The product is a new
product with different uses and characteristics to the cocoa powder or other ingredients.  The rule
should be CTSH
OPTION B:  Yes, provided that :
256. Processing cocoa, including cocoa powder unless already sweetened, into the cocoa
preparations in liquid, paste, powder or granular form, in containers or immediate packings of a
content exceeding 2kg of subheading 1806.20 is a substantial transformation.  The product is a new
product with different uses and characteristics to th e cocoa powder or other ingredients.  However, if
sweetened cocoa powder is used the transformation is not sufficient to be considered as a substantialtransformation.  The rule proposed is “CTH”.
OPTION C:  No
257. Processing cocoa powder, whether or not sweete ned, and sugar or other sweetening material,
into the cocoa preparations in liquid, paste, powde r or granular form, in containers or immediate
packings of a content exceeding 2kg of subheading 1806.20 is not a substantial transformation.  The
product has not been changed sufficiently in appearance, uses or characteristics from the cocoa
powder or other ingredients.  The rule proposed is  “CTSH, except from Chapter 17 or from heading
18.05 or subheading 1806.10”.
Relevant HS Code:
ex-1806.20(a)
ISSUE No. 63: MAKING COCOA PREPARATIONS IN BLOCKS, SLABS OR BARS
WEIGHING MORE THAN 2KG, FROM COCOA POWDERG/RO/45/Ad d.8/Rev.2
Page 51
OPTION A: Yes
258. Chocolate is composed essentially of cocoa paste and sugar (or other sweetening matter)
usually with the addition of flavouring and cocoa butter; in some cases, cocoa powder and vegetableoil may be substituted for cocoa paste.  Other ingred ients such as milk, coffee, nuts, raisins, etc. may
sometimes also be added.  Processing cocoa, in cluding cocoa powder whether or not sweetened, into
the cocoa preparations in blocks, slabs or bars weighing more than 2kg of subheading 1806.20 is a
substantial transformation.  The product is a new product with different appearance, uses and
characteristics to the cocoa powder or other ingredients.  The rule should be CTSH
OPTION B:  Yes, provided
259. Processing cocoa, including cocoa powder unless already sweetened, into the cocoa
preparations in blocks, slabs or bars weighing more than 2kg of subheading 1806.20 is a substantial
transformation.  The product is a new product with different appearance, uses and characteristics to
the cocoa powder or other ingredients.  Howe ver, if sweetened cocoa powder is used the
transformation is not sufficient to be considered as a substantial transformation.  The options for therule are “CTH” or “CTSH, except from subheading 1806.10”.
Relevant HS Code:
ex-1806.20(b)
ISSUE No. 64: MAKING COCOA PREPARATIONS, OTHER THAN SWEETENED COCOA
POWDER, IN BLOCKS, SLABS OR BARS WEIGHING 2KG OR LESS, WHETHER OR NOT
FILLED, FROM SWEETENED COCOA POWDER OR FROM OTHER COCOA PREPARATIONS
WEIGHING MORE THAN 2KG
OPTION A:  Yes260. Processing sweetened cocoa powder, or other cocoa preparations weighing more than 2kg,
into the cocoa preparations in blocks, slabs or bars weighing 2kg or less, of subheadings 1806.30 to
1806.90, is a substantial transformation.  The rule should be “CTSH”.
OPTION B:  Yes, provided
261. Processing cocoa, cocoa paste, cocoa butter, fat or oil and/or unsweetened cocoa powder, into
the cocoa preparations weighing 2kg or less, of subheadings 1806.30 to 1806.90, is a substantial
transformation.  However processing sweetened coco a powder or the cocoa preparations in blocks,
slabs or bars or in liquid, paste, powder or granular  form in quantities exceeding 2kg classified in the
same heading is not sufficient to confer origin.  The rule should be “CTH”.
Relevant HS Codes:
1806.31 to 1806.90
CHAPTER 19ISSUE No. 65: PRODUCTION OF PREPARATIONS FOR INFANT USE, PUT UP FOR RETAIL
SALE FROM OTHER GOODS OF HEADING 19.01
OPTION A:  Yes, providedG/RO/45/Ad d.8/Rev.2
Page 52
262. Preparations for infant use of subheading 1901.10 often contain materials classified in
heading 19.01, particularly in subheading 1901.90.  While it is possible that non-originating bulk
preparations for infant use of 1901.90 may undergo a change to subheading 1901.10 merely by being
put up in packaging for retail sale, and this change should not be considered as resulting in substantial
transformation, this is not the only possibility.  Other changes from intermediate materials of 1901.90
to preparations for infant use of 1901.10 may take place involving mixing and other preparation
including the addition of sweeteners or flavours,   preparation in liquid or powder form and the
combining of preparations of flour, meal starch or malt extract of 1901.90 with materials of other
headings.  Such changes result in the creation of new products which should be considered as having
been substantially transformed, subject to the proviso that change to subheading 1901.10 is not the
result of packaging for retail sale alone.
OPTION B: No
263. The production of preparations for infant use largely involves changes to subheading 1901.10
from goods of other headings and other chapters.  To the extent that there are changes within heading
19.01, these changes do not result in new products, and the materials used are not substantially
transformed.
Relevant HS Code:
1901.10
Reference:
41.745
ISSUE No. 66: PRODUCTION OF MIXES AND DOUGHS FOR THE PREPARATION OF
BAKERS’ WARES USING MATERIALS OF SUBHEADING 1901.90
OPTION A: Yes
264. As in Issue No. 1, the goods of subheading 1901.90 should be considered as intermediate malt
extracts, flours, meals and starches which undergo substantial transformation when mixed or prepared
into mixes and doughs for the preparation of bakers’ wares of subheading 1901.20.  Such intermediate
materials include preparations such as: flours obtain ed by evaporating mixtures of milk with sugar
and flour; mixtures of egg powder, milk powder, malt extract and cocoa powder; mixtures of cereal
flours with fruit flours; malted milk in powde r form with or without added sugar; and other
preparations containing, with other ingredients,  rice, potato, semolina.  Given the many possible
combinations of intermediate ingredients used in the mixes and doughs of 1901.20  and the skill
required to prepare them properly into mixes and doughs, it is appropriate to conclude that that
substantial transformation takes place.
OPTION B: No
265. The ingredients classified in subheading 1901.90 are not substantially transformed when used
to produce products of subheading 1901.20.  The malts, starches, flours and mixes do not undergo
their last substantial transformation until later, when they are used to produce bakers’ wares of
heading 19.05.
Relevant HS Code:
1901.20
Reference:
41.745G/RO/45/Ad d.8/Rev.2
Page 53
ISSUE No. 67:  PRODUCTION OF STUFFED PASTA USING PASTA OF HEADING 19.02
OPTION A: Yes
266. The preparation of stuffed pasta of subheading 1902.20 results in a new product in which the
pasta used, classified in subheadings 1902.11, 1902.19 or 1902.30, as well as the stuffing materials,
have undergone substantial transformation.  The preparation of stuffed pasta normally involves
cooking the input pasta and the addition of meat, fish, cheese, and sauces.  The resulting prepared
product is ready for consumption as an entirely different and new product in comparison with the
input materials. Accordingly, a change from the subheadings for pasta to stuffed pasta should be
considered as origin-conferring.
OPTION B:  No
267. The main characteristic is imparted by the pasta, and not by the sauces or stuffings used.
From this point of view, the pasta does not change its characteristics and does not undergo substantial
transformation when prepared as a stuffed pasta.
Relevant HS Code:
1902.20
Reference:
41.745
ISSUE No. 68: PRODUCTION OF PREPARED PIZZA FROM COOKED PIZZA BASEOPTION A:  Yes
268.
 The manufacture of prepared pizza from cooked pizza bases is a substantial transformation.
The pizza base must be considered as an intermediate product, a material for the production of a
complete pizza.  A prepared pizza, ready for the consumer, is quite another product than merely a
bread dough.
269. When the consumers buy a pizza, they ask for a ready-made pizza - which is the name on the
market, with different brands and types.  The different types have their own “secret” recipe.
Compared to a pizza base, a prepared pizza has new characteristics, new use, and considerably higher
commercial value due to industrial processes and in put materials (the various ingredients) and another
name for the market/consumer.  The requirements for the pizza to be considered as a new product are
therefore fulfilled.  However, because the cooked bread dough called “pizza base” is classified within
the same subheading as the ready-made pizza itself (1905.90), a change of he ading or change of
subheading rule will not reflect this origin-conferring result.
OPTION B:  No
270. Substantial transformation does not occur when cooked pizza base is used to make
ready-made pizza.  In this production process materials are added to the top of the cooked dough and
the pizza is packaged.  It is the consumer who cooks the pizza which has been prepared in this
manner.
Relevant HS Code:
ex1905.90(a)G/RO/45/Ad d.8/Rev.2
Page 54
References:
41.417, 41.745
CHAPTER 20
271. As indicated in Basket 2 Chapter Note, the TCRO is still to define origin criteria for blended
or mixed goods of this Chapter.
ISSUE No. 69: PRODUCTION OF VEGETABLES, FRUIT, NUTS AND OTHER EDIBLE PARTS
OF PLANTS PREPARED OR PRESERVED BY VINEGAR OR ACETIC ACID OF HEADING
20.01
OPTION A:  Yes
272. Change of tariff heading is sufficient to express the last substantial transformation which
these goods undergo.  In this context, change of tariff heading does not mean that each successive
preservation process confers origin; it is rather a matter of expressing substantial transformation by
means of a criterion foreseen in the Agreement.
ALTERNATIVE ARGUMENT:
273. The goods of this heading are generally pr oduced from fresh or provisionally preserved
vegetables, fruit and nuts of Chapters 7 and 8.  It has not been possible to identify any goods of
Chapter 20 outside of heading 20.01, all of which are goods which have been prepared or permanently
preserved in some manner other than with vinegar or acetic acid, which are used in the production of
goods of heading 20.01.  Even if this were the case, it would be inadmissible to consider that a second
preserving process by the use of acetic acid or vinegar should be considered as origin-conferring.  It is
the first preservation which is determinative.  For this reason, changes from vegetables, fruits and nuts
of Chapters 7 and 8 to the goods of heading 20.01 are to be treated as substantial transformations of
the input materials and are origin conferring.  The rule proposed is “CC”.
OPTION B:  No
274. There is no substantial transformation which takes place when vegetables, fruit or nuts, either
fresh or provisionally preserved, are made into preserved goods of heading 20.01.  The vegetables,
fruits or nuts retain their initial character; preservation merely serves to permit longer shelf life.
Accordingly, the origin of goods of 20.01 must be  the same as the origin of the materials of
Chapters 7 and 8 used in their manufacture.
Relevant HS Code:
20.01
References:
41.422, 41.504,41.745
ISSUE No. 70: PRODUCTION OF TOMATOES, MUSHROOMS TRUFFLES AND OTHER
FRUITS, NUTS AND OTHER EDIBLE PARTS OF PLANTS PREPARED OR PRESERVED
OTHERWISE THAN BY VINEGAR OR ACETIC ACID FROM FRESH MATERIALS OR
MATERIALS OF CHAPTER 20
OPTION A:  YesG/RO/45/Ad d.8/Rev.2
Page 55
275. Change of tariff heading is sufficient to express the last substantial transformation which
these goods undergo.  These goods undergo their last substantial transformation when input materials
classified in other headings of Chapter 20 or fresh materials of other chapters are processed to
produce them.
OPTION B:  Yes, provided
276. Same as for Option A, except that for tomatoes of 20.02 there should be no change from other
preserved tomatoes if the change to heading 20.02 takes place by reason of freezing alone.  A
variation of this option is that the change should not take place by reason of only canning and
sterilizising.
OPTION C:  No
277. For these goods substantial transformation takes place when fresh or provisionally preserved
fruits, nuts and plant materials of other chapters are processed to produce them.  It is the change from
fresh or provisionally preserved goods which results in new goods having different characteristics.
Goods of this Chapter, which have already been preserved, have not undergone substantial
transformation when they are used in the production of the goods of the headings in question.
ALTERNATIVE ARGUMENT:
278. The change from fresh or provisionally preserved to preserved goods does not result in
substantial transformation.  The characteristics of the goods as fruits, nuts or other edible plants is not
changed by the processing operations, and the origin of the resulting goods should be determined on
the basis of the origin of the original fresh or provisionally preserved materials.
Relevant HS Codes:
20.02, 20.03 and 2008.20 to 2008.99
ISSUE No. 71: PRODUCTION OF PREPARED VEGETABLE, FRUIT OR NUT POWDERS
FROM PRESERVED OR PREPARED VEGETABLES, FRUITS OR NUTS
OPTION A:  Yes
279. Substantial transformation takes place when vegetable or fruit pulps are processed with
ingredients such as malto-dextrin and pec tin to produce fruit and vegetable powders.  In practice, it is
not possible to obtain powdered fruit or vegetables without passing through the stage of concentrate,
pulp or juice o the same fruit or vegetable.  The production process consists of the steps of premixing
with carriers and additives; pasteurization and homogenization; drying; milling ; and mixing, sieving,
filling and packaging.
OPTION B:  No
280. The change from prepared vegetables or fruits to powders is not a substantial transformation.
Relevant HS Codes:
ex2002.90(a); 20.03; 2008.20 through 2008.99; 20.09
Reference:
Doc. 41.422G/RO/45/Ad d.8/Rev.2
Page 56
ISSUE No. 72: PRODUCTION OF TOMATO SYRUP BASE SAUCE FROM TOMATOES,
PREPARED OR PRESERVED BY ANY METHOD
OPTION A:  Yes
281. The manufacture of tomato syrup sauce base, which is used as an intermediate input for the
production of specialty sauces, from the blending, homogenisation and cooking of tomato paste, water
and sugar results in a substantial transformation.  The manufacturing process by blending and cooking
with other ingredients changes the flavour, texture, physical and chemical characteristics of the input
materials.  The key taste characteristics measured by the pH, total titratable acidity and total soluble
acids of the resultant product are altered significantly from the those of the input materials used.  The
pH and total titratable acidity indicate the degree of sourness while total soluble solids measures thesoluble sugar.  The new product is extremely sweet with a slightly sour after-taste as compared to
tomato paste which has a typical tomato flavour with a tart or sharp after-taste.  Tomato paste has the
appearance and texture of a thick paste while the syrup sauce base is less thick with a low flowability.
The rule proposed is “CTHS”
OPTION B:  No
282. There is no substantial transformation of preserved tomatoes when they are used in the
production of tomato syrup sauce base classified in the same heading.
Relevant HS Code:
ex 2002.90(b)
References:
41.504, 41.745
ISSUE No. 73: PRODUCTION OF JAMS, FRUIT JELLIES, MARMALADES FRUIT OR NUT
PUREE, BEING COOKED PREPARATIONS, FROM FRUITS OR NUTS OR FROM FRUITS OR
NUTS PRESERVED
OPTION A:  Yes
283. The jams, jellies, marmalades and other cooked preparations of this heading are often made
from fruits and nuts preserved but not cooked classified in the same chapter.  The change from these
input materials to the final product by cooking and homogenisation should be recognised as
substantial transformation as the final products have substantially different characteristics from the
input materials used.  The proposed rule is “CTH”.
OPTION B:  No
284. The last substantial transformation for these goods takes place in the country in which the
fresh of provisionally preserved fruits or nuts of other chapters are processed into jams, jellies,
marmalades and other goods of this heading.  There is no substantial transformation which takes place
when goods of Chapter 20 are used for this, as they have already been preserved and have undergone
their last substantial transformation.  The proposed rule is “CC”.
Relevant HS Code:
20.07
Reference:
41.745G/RO/45/Ad d.8/Rev.2
Page 57
ISSUE No. 74:  PRODUCTION OF PEANUT BUTTER FROM GROUND NUTS
OPTION A: Yes
285. When peanut butter is produced roasted ground nuts are substantially transformed.  The
changes in the goods from roasted nuts to a paste of ground nuts, often containing added oil and salt
are significant and demonstrate the production of a new good which has acquired a new country of
origin.
OPTION B: Yes (with blanching, roasting and grinding)
286. A new country of origin is conferred when p eanut butter is produced in one country from
fresh ground nuts of Chapter 12 by blanching, roasting and grinding.  Substantial transformation does
not take place if the input materials have previously been roasted.  Change from materials of another
chapter or alternatively from goods of another heading is sufficient to express this origin criterion.
OPTION C:  No
287. Fresh ground nuts are not substantially transformed by their processing into peanut butter.
The basic characteristics of the ground nuts remain, and the origin of peanut butter should be the
country in which the ground nuts were harvested.
Relevant HS Code:
ex2008.11(a)
Reference:
41.745
ISSUE No. 75: BLANCHING AND/OR ROASTING OF GROUND NUTS (PEANUTS) AND OF
OTHER NUTS AND OTHER SEEDS
OPTION A:  Yes (for blanching)288. Blanching of fresh nuts of Chapters 8 and 12 results in products which are available for new
uses. Blanching alone is substantial transformation and origin conferring.
OPTION B:  Yes (for roasting with blanching)
289. Blanching is commonly undertaken before roasting of nuts.  While blanching alone does not
confer origin, roasting, or roasting accompanied by blanching, results in substantial transformation.
The roasting process results in nuts which have new taste and preservation characteristics and which
have new uses, both for direct consumption and for use in other preparations.
OPTION C:  Yes (for blanching, roasting and packaging)
290. Blanching, roasting and packaging of ground-nuts of Chapter 12, performed together, result in
substantial transformation.  Consequently, for ex  2008.11(b) the rule proposed is “CTH following
blanching, roasting and packaging of the ground-nuts”.
OPTION D:  NoG/RO/45/Ad d.8/Rev.2
Page 58
291. Roasting and blanching of nuts does not substantially transform fresh nuts of Chapters 8 and
12.  These processes are the normal further preparation of these materials for consumption, and bring
out characteristics inherent in the nuts.
Relevant HS Codes:
ex 2008.11(b); ex2008.11(c); 2008.19Reference:
41.745
ISSUE No. 76:  MIXING AND SEASONING OF NUTS OR SEEDS292.
 For Issue 79 the Technical Committee has retained for further consideration the definition of
the mixing operations, if any, which are to be considered as origin conferring.  Nevertheless, the
Committee is requested to decide, in principle, whether mixing and seasoning in the context of these
goods results in substantial transformation.
OPTION A:  Yes
293. The preparation of mixtures of seeds of nuts requires in almost all cases the addition of
seasonings, preservatives and other ingredients.  There is, moreover, a degree of skill required in the
selection, grading and balancing of constituents.  The resulting products are new and different from
their constituents and should be considered to have obtained origin in the country in which the mixing
takes place.  This conclusion is subject, however, to the satisfaction of well-defined criteria specifying
the mixing processes which are origin conferring.  It is noted that if mixing, as in this case, is not
considered to confer origin, severe administrative difficulties are raised, and there is a clear need to
provide for an origin outcome in any case where a mixing process does not result in a single country
of origin.
OPTION B:  No
294. Merely mixing fruits and nuts does not result in substantial transformation.  It is
acknowledged that where there is no substantial transformation as a result of mixing there is a need
for an origin outcome.  This, however, does not justify the conclusion that because there is no single
country of origin the country in which mixing t ook place must be the country where substantial
transformation occurs.  It is preferable to consider that a residual rule would apply in such cases to
give an appropriate result without reference to mixing per se as an origin conferring event.
Relevant HS Codes:
2008.19, 2008.92
Reference:
41.745
ISSUE No. 77: PRODUCTION OF FRUIT AND VEGETABLE JUICES FROM FRUITS AND
VEGETABLES
OPTION A: Yes
295. Fruit and vegetable juices often are based upon preserved fruits and vegetables of Chapter 20.
For this reason, it is necessary to take into account not only the extraction of juices from fresh fruits or
vegetables, but also numerous possibilities for production based upon mixtures and preparations of
preserved fruit and vegetable materials.  The production of juices from such materials should be
considered as resulting in substantial transformation.  The rule proposed is “CTH”G/RO/45/Ad d.8/Rev.2
Page 59
OPTION B:  Yes (from fresh fruits or vegetables)
296. The last substantial transformation of fruit juices takes place when the juices are extracted
from fresh materials of Chapters 7 and 8.  As a result of this process the juice acquires its
characteristics and commercial identity.  It is thus the change of chapter from the materials to the juice
which expresses substantial transformation.
OPTION C:  No
297. The production of fruit and vegetable juice is a process of extraction which does not result in
substantial transformation of the fruits or vegetables.  The country of origin of the juice is the country
in which the fruits or vegetables were harvested.
Relevant HS Code:
20.09
Reference:
41.745
ISSUE No. 78: PRODUCTION OF RECONSTITUTED FRUIT JUICES FROM FRUIT JUICE
EXTRACTS OR CONCENTRATES
OPTION A:  Yes
298. Reconstitution is an origin-conferring event.  The production of reconstituted juices is far
more than a matter of dilution with water.  Other ingredients such as oils and essences are used to
impart the desired characteristics.
OPTION B:  No
299. There is no substantial transformation when fruit juice concentrates or extracts are processed
into reconstituted juices.  Reconstitution consists of a simple process of dilution.  The fact that
essential oils and other ingredients are used makes no difference.
Relevant HS Code:
20.09
CHAPTER 21ISSUE No.79: OBTAINING EXTRACTS, ESSENCES AND CONCENTRATES (INCLUDING
INSTANT COFFEE) EXCLUSIVELY OF REAL COFFEE
OPTION A: Yes
300. Obtaining extracts, essences and concentrates of coffee (including instant coffee) is a
substantial transformation.  The processes include roasting, extracting, concentrating, agglomeration
which result in a new product with new characteristics.  The rules proposed are “CTH” and “CTSH”
which both have the same result.
OPTION B: Yes providedG/RO/45/Ad d.8/Rev.2
Page 60
301. Obtaining extracts, essences and concentrates of coffee (except instant coffee) is a substantial
transformation.  Obtaining instant coffee is a substantial transformation provided that coffee from
other countries does not constitute more than 30% by weight of the product.
OPTION C: No
302. Extracts, essences and concentrates of coffee (including instant coffee) originate in the
country of origin of the coffee beans.  The rule proposed is “CTH except from heading 09.01”.
OPTION D:  No
303. Extracts, essences and concentrates exclusively of coffee (including instant coffee) have the
origin of the country where the green coffee bean is obtained in its natural or unprocessed state.
304. The organoleptic characteristics of coffee (aroma, acidity, bitterness and body) are determined
by a combination of  the chromosomic composition of the coffee species (arabica, 44 chromosomes,
or robusta, 22 chromosomes), the place of cultivation (latitude, altitude, soil), climate conditions
(exposure to sun and rain), the methods of harvesting the beans (fruit from the plant) and the
processing methods of the fruit into the green dry bean. The species  is essential because it has a
determined number of chromosomes which in intera ction with the above mentioned conditions confer
the main organoleptic characteristics. This gi ves a determined chemical composition which is
responsible for the final taste. The harvesting and processing of the coffee fruit to obtain the coffee
bean determines the quality of taste and flavour and can also result in certain defects (e.g. Overly
prolonged fermentation of the bean results in  an undesirable flavour) that cannot be corrected by the
roasting process.
305. Obtaining coffee concentrates, extracts and essences is not a substantial transformation
inasmuch as these coffee forms are obtained through addition and subsequent removal of water, to a
greater or lesser extent, depending on the form that is desired.
306. The success of the process lies in obtaining the extract, concentrate or essence without
modifying the organoleptic characteristics that where already determined in the green coffee bean.Consequently, the process is done in such a way as not to alter these organoleptic characteristics,
which, in turn, are exclusively dependent on the variety, the place of cultivation and the methods of
obtaining of the green bean.
Relevant HS Code:
ex-2101.11(a)
References: 
40.986, 41.447, 41.745
ISSUE No.80: OBTAINING EXTRACTS, ESSENCES AND CONCENTRATES OF COFFEE
MIXED WITH COFFEE SUBSTITUTES
OPTION A: Yes
307. Obtaining extracts, essences and concentrates of coffee mixed with coffee substitutes
(whether or not roasted or in the form of extracts, essences or concentrates of coffee substitutes) in
any proportion, is a substantial transformation which results in a new product with new
characteristics.  The rule proposed is “CTSH”.
OPTION B: Yes providedG/RO/45/Ad d.8/Rev.2
Page 61
308. Obtaining extracts, essences or concentrates of coffee mixed with coffee substitutes in any
proportion, is a substantial transformation provided that it is obtained from coffee substitutes roasted
in the same country or from a non-originating  mixture of coffee with coffee substitutes (subheading
0901.90).  Under the proposed “CTH” rule, obtaining such products from non-originating roasted
coffee substitutes (subheading 2101.30) would not be origin-conferring.
OPTION C: No
309. Obtaining extracts, essences or concentrates of coffee mixed with coffee substitutes in any
proportion, is not a substantial transformation.  The origin of the product is the country of origin of
the mixture of coffee with coffee substitutes (subheading 0901.90).  The rule proposed is “CTH
except from heading 09.01”.
Relevant HS Code:
ex-2101.11(b)
References:
41.447, 41.745, 41.986
ISSUE No.81: OBTAINING PREPARATIONS WITH A BASIS OF EXTRACTS, ESSENCES OR
CONCENTRATES OF COFFEE OR WITH A BASIS OF COFFEE
OPTION A:  Yes310. Obtaining preparations with a basis of extracts, essences or concentrates of coffee, or with a
basis of coffee, is a substantial transformation and results in a new product with new characteristics.
Deliberate blending of instant coffee, sugar and creamer in a specific formulation and putting the
constituents in ready-to-serve sachets for immedi ate consumption are carried out.  A new product
results with a different taste from the individual constituents and which is ready to be served
immediately.  A technical file was presented with the example of “coffee mix 3-in-1 instant drink”.
The rule proposed is “CTSH”.
OPTION B:  Yes, provided
311. Obtaining such preparations by processing the coffee of heading 09.01 to obtain these
preparations is a substantial transformation which results in a new product with new characteristics.Obtaining the products merely from extracts, essences or concentrates of coffee is not a substantial
transformation.  The rule proposed is “CTH”.
Relevant HS Code:
2101.12
References:
41.504, 41.745
ISSUE No.82: OBTAINING PREPARATIONS WITH A BASIS OF EXTRACTS, ESSENCES OR
CONCENTRATES OF TEA OR MATÉ
OPTION A:  Yes312. Obtaining preparations with a basis of extracts, essences or concentrates of tea or maté is a
substantial transformation and results in a new product with new characteristics. An example is “teaG/RO/45/Ad d.8/Rev.2
Page 62
mix 3-in-1 instant drink” (which is processed in a similar manner as the coffee mix described above).
Deliberate blending of instant tea with other constituents to a specific formulation and putting the
constituents in ready-to-serve sachets for immedi ate consumption are carried out.  A new product
results with a different taste from the individual constituents and which is ready to be served
immediately.  The rule proposed is “CTSHS” because the extracts, essences or concentrates areclassified in the same subheading as the preparations.
OPTION B:  No
313. Obtaining such preparations from extracts, essences or concentrates of tea or maté is not a
substantial transformation.  Processing the tea or maté of headings 09.02 or 09.03 to obtain these
preparations is a substantial transformation which results in a new product with new characteristics.
The rules proposed are “CTSH” and “CTH”.  The choice is an architecture issue and makes nodifference in origin terms.
Relevant HS Code::
ex-2101.20 (a)
ISSUE No.83: OBTAINING EXTRACTS, ESSENCES AND CONCENTRATES OF TEA OR
MATÉ
OPTION A: Yes314. Obtaining extracts, essences and concentrates of tea or maté is a substantial transformation.
The result is a new product with new characteristics.  The rules proposed are “CTSH” and “CTH”.
The choice is an architecture issue and makes no difference in origin terms.
OPTION B: No
315. Extracts, essences and concentrates of tea or maté originate in the country of origin of the tea
or maté.  The rule proposed is “CTH except from headings 09.02 or 09.03”.
Relevant HS Code:
ex-2101.20 (b)
ISSUE No. 84:  OBTAINING INACTIVE YEAST FROM ACTIVE YEASTOPTION A:  Yes
316. Inactive yeasts are obtained by drying active yeasts.  This is considered to be a substantial
transformation.  The rule proposed is “CTSH”.
OPTION B:  No
317. The change to Inactive yeasts from active yeasts is not a substantial transformation.  The rule
proposed is “CTH”.
Relevant HS Code:
2102.20.
ISSUE No.85: OBTAINING SAUCES AND PREPARATIONS THEREFOR; MIXED
CONDIMENTS AND MIXED SEASONINGS (OTHER THAN MUSTARD)G/RO/45/Ad d.8/Rev.2
Page 63
OPTION A:  Yes
318. Making sauces and preparations therefor or  mixed condiments and mixed seasonings (other
than mustard), which may include other sauces, preparations, mustard, mixed condiments or mixed
seasonings or classified in other subheadings of heading 21.03, is a substantial transformation.  Theproposed rule is “CTSH”.
OPTION B:  No
319. The sauces and preparations classified in subheadings 2103.10 (soya sauce) and 2103.20
(tomato ketchup and other tomato sauces) are obtained from materials classified in other headings.
The appropriate rule is “CTH”.
Relevant HS Code:
2103.10, 2103.20, 2103.90
ISSUE No. 86: OBTAINING PREPARED MUSTARD FROM MUSTARD FLOUR AND MEAL,
OR FROM OTHER PRODUCTS OF HEADING 21.03
OPTION A:  Yes
320. Making prepared mustard from mustard flour a nd meal, or from other products of heading
21.03, is a substantial transformation which results in a new product.  The proposed rule is “CTSHS”
as the mustard flour and meal is classified in the same subheading.
OPTION B:  Yes, provided
321. Making prepared mustard, which may include products of heading 21.03 other than from
mustard flour and meal is a substantial transformation which results in a new product.  Making
prepared mustard from mustard flour and meal is not sufficient to be considered as a substantial
transformation.  The proposed rule is “CTSH”.
OPTION C:  Yes, provided
322. Making prepared mustard from mustard seeds of heading 12.07 is a substantial
transformation.  The proposed rule is “CTH”.
Relevant HS Code:
ex 2103.30(b)
References:
41.539, 41.745
ISSUE No. 87: OBTAINING SOUPS, BROTHS OR PREPARATIONS THEREFOR
OPTION A:  Yes323. Obtaining soups, broths or preparations therefor from homogenised composite food
preparations put up for retail sale as infant food or for dietetic purposes, or in containers of 250g orless is a substantial transformation  The proposed rule is “CTSH”.
OPTION B:  Yes, providedG/RO/45/Ad d.8/Rev.2
Page 64
324. That the goods are not obtained from homogenised composite food preparation.
325. However, obtaining soups, broths or preparations therefor from vegetables, vegetable
products, meat, meat extracts, fish, crustaceans, etc. is a substantial transformation.  The proposed rule
is “CTH”.
Relevant HS Code:
2104.10.
ISSUE No.88:    OBTAINING HOMOGENISE D COMPOSITE FOOD PREPARATIONS PUT UP
FOR RETAIL SALE AS INFANT FOOD OR FOR DIETETIC PURPOSES, OR IN CONTAINERS
OF 250G OR LESS
326. As indicated in Basket 2 Chapter Note the TCRO has still to consider origin criteria when a
change of classification results from only packing for retail sale.
OPTION A:  Yes
327. Obtaining homogenised composite food preparations put up for retail sale as infant food or
for dietetic purposes, or in containers of 250g or less is a substantial transformation  Homogenising or
mixing soup preparations is a substantial transformation.  However, a change of subheading as a result
merely of putting up for retail sale is not origin-conferring and should be excluded by a general
Chapter Note.  The proposed rule is “CTSH”. (but see proposed Chapter Note)
OPTION B:  Yes, provided
328. Obtaining these homogenised composite food preparations, other than by homogenising or
mixing soup preparations, is a substantial transformation.  However, a change of heading as a result
merely of putting up for retail sale is not origin-conferring and should be excluded by a general
Chapter Note.  The proposed rule is “CTH”. (but see proposed Chapter Note).
Relevant HS Code:
2104.20
.
ISSUE No.89: OBTAINING PROTEIN CONCENTRATES AND TEXTURED PROTEIN
SUBSTANCES
OPTION A:  Yes
329. Obtaining protein concentrates or textured protein substances,  whether or not they also
include other food preparations classified in heading 21.06, is a substantial transformation.  The
proposed rule is “CTSH”.
OPTION B:  Yes, provided
330. Obtaining protein concentrates or textured protein substances, provided that they do not
include other food preparations classified in heading 21.06, is a substantial transformation.  The
proposed rule is “CTH”.
Relevant HS Code:
2106.10G/RO/45/Ad d.8/Rev.2
Page 65
ISSUE No.90: PROCESSING SUGAR TO OBTAIN SUGAR SYRUPS, FLAVOURED OR
COLOURED
OPTION A:  Yes
331. Obtaining flavoured or coloured sugar syrups is a substantial transformation.  The proposed
rules are “CTH” and “CTSH”
332. It is considered unlikely that such syrups would include protein concentrates and textured
protein substances of subheading 2106.10.  The options for the rule are therefore understood to be a
terminology issue.
OPTION B:  No
333. Making sugar syrups, flavoured or coloured, from sugar of heading 17.02 is not a substantial
transformation. The proposed rules are “CTH, except from heading 17.02” and “CTSH, except from
heading 17.02”.  It is understood that the same terminology issue is raised here as in option A.
Relevant HS Code:
ex-2106.90(a)
ISSUE No.91: PROCESSING MILK TO OBTAIN PRODUCTS CONTAINING OVER 50% BY
WEIGHT OF MILK SOLIDS
OPTION A:  Yes334. Obtaining products containing over 50% by weight of milk solids is a substantial
transformation.  The proposed rules are “CTSH” and “CTH”.
[OPTION B:  Yes, provided
335. The production of products containing over 50% by weight of milk solids from milk or milk
preparations is only a substantial transformation if supplementary criteria are met.  The proposed rule
is “CTSH, except from Chapter 4 and from subheading 1901.90, or change from Chapter 4 or from
subheading 1901.90 provided supplementary criteria are met”.
OPTION C:  No
336. The production of products containing over 50% by weight of milk solids from milk or milk
preparations is not a substantial transformation.  The proposed rule is “CTSH, except from Chapter 4
and from subheading 1901.90”.
Relevant HS Code:
ex-2106.90(b)
ISSUE No.92:  ADDING MINERALS OR VITAMINS TO FORTIFY CONCENTRATED JUICES
OPTION A:  Yes
337. Obtaining concentrated juices fortified with minerals or vitamins is a substantial
transformation.  The proposed rules are “CTSH” and “CTH”.
OPTION B:  NoG/RO/45/Ad d.8/Rev.2
Page 66
338. Adding minerals or vitamins to fortify concentrated juices of heading 20.09 is not a
substantial transformation.  The proposed rule is “CTSH, except from heading 20.09”.
Relevant HS Code:
ex-2106.90(c)
ISSUE No.93: OBTAINING OTHER FOOD PREPARATIONS CLASSIFIED IN SUBHEADING
2106.90
OPTION A:  Yes339. Obtaining other food preparations classified in subheading 2106.90, whether or not they also
include protein concentrates or textured protein substances of subheading 2106.10, is a substantial
transformation.  The proposed rule is “CTSH”.
OPTION B:  Yes, provided
340. Obtaining other food preparations classified in subheading 2106.90, provided that they do not
include non-originating protein concentrates or textured protein substances of subheading 2106.10, is
a substantial transformation.  The proposed rule is “CTH”.
[OPTION C:  Yes, provided
341. Obtaining other food preparations classified in subheading 2106.90, provided that
supplementary criteria are met if they contain non-originating milk or milk preparations, is a
substantial transformation. The proposed rule is “CTSH, except from Chapter 4 and from subheading
1901.90, or change from Chapter 4 or from subheading 1901.90 provided supplementary criteria are
met”.
Relevant HS Code:
ex-2106.90(d)
CHAPTER 22
ISSUE No. 94: ADDING FLAVOURS OR SUGAR OR OTHER SWEETENING MATTER TO
WATERS
OPTION A:  Yes342. Adding flavouring or sugar (or other sweeteni ng matter), or both flavouring and sugar, to
waters, including mineral waters and aerated waters, is a substantial transformation.  However, adding
sugar to non-originating flavoured waters or vice versa would not be sufficient to be considered as a
further substantial transformation.  The proposed rule is “CTH”.
OPTION B:  Yes, provided
343. Waters, including mineral waters and aerated waters, both flavoured and containing added
sugar (or other sweetening matter) have undergone a last substantial transformation from the waters of
heading 22.01.  A CTH rule is proposed for the split subheading to provide for change from thewaters of heading 22.01.
344. The subheading includes beverages such as lemonade or cola, consisting of ordinary drinking
water, sweetened or not, flavoured with fruit juices or essences or compound extracts.  Cola, forG/RO/45/Ad d.8/Rev.2
Page 67
example, is produced by mixing aerated water with a syrup containing flavouring and sweetening
matter which has the essential character of the cola.
345. Waters that are only flavoured or only sweetened are not considered as having been
substantially transformed and, under the proposed rule, they would retain the origin of the country in
which the waters were obtained in their natural or unprocessed state.
OPTION C:  No
346. Waters of subheading 2202.10, whether both flav oured and sweetened or only flavoured or
only sweetened, have not been substantially transformed and have the origin of the country in which
the waters were obtained in their natural or unprocessed state.
347. These products are essentially waters.  Merely adding sugar and flavouring to water does not
change the essential character of the waters.
Relevant HS Codes:
ex-2202.10(a), ex-2202.10(b)
ISSUE No. 95: PRODUCING NON-ALCOHOLIC BEVERAGES CONTAINING OVER 50% BY
WEIGHT OF MILK SOLIDS
OPTION A: Yes348. Milk or milk preparations undergo a last substantial transformation when used in the
production of non-alcoholic beverages.  The resulting beverage is a new product with newcharacteristics.
349. The rules proposed are “Change of Chapter” or “CTH”.  The “Change of Chapter” rule would
not allow the inclusion of non-originating water of heading 22.01
[OPTION B:  Yes, provided
350. The goods of Chapter 4, headings 19.01, 20.09 or subheading 2106.90 used in the production
of non-alcoholic beverages containing more than 50% by weight of milk solids are considered to
undergo a last substantial transformation provided that they meet certain supplementary criteria.  (The
appropriate criteria have yet to be defined.)
351. The rule proposed is “CTH with supplementary criteria for the change from Chapter 4,
headings 19.01, 20.09 or subheading 2106.90”.
OPTION C:  No
352. The milk or milk preparations of Chapter 4 or heading 19.01 used in the production of
non-alcoholic beverages containing more than 50% by weight of milk solids are considered to
determine the essential character of the beverage and do not therefore undergo a last substantial
transformation.  These non-alcoholic beverages would have the origin of the country in which themilk or milk preparations were obtained.
353. The rule proposed is “CTH except from Chapter 4 or heading 19.01”.
OPTION D:  NoG/RO/45/Ad d.8/Rev.2
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354. The goods of Chapters 4, 20 or 21 do not undergo a substantial transformation when used in
the production of non-alcoholic beverages containing more than 50% by weight of milk solids.  These
beverages would have the origin of the country of the milk or other ingredients classified in
Chapter 4, 20 or 21.
355. The rule proposed is “CTH except from Chapters 4, 20 and 21”.
Relevant HS Code:
ex-2202.90(a)
ISSUE No. 96: PRODUCING NON-ALCOHOLIC BEVERAGES CONTAINING JUICES
FORTIFIED WITH MINERALS OR VITAMINS
OPTION A:  Yes356. Juices undergo a last substantial transformation when used to produce a non-alcoholic
beverage of this subheading.  The resulting beverage is a new product with new characteristics.
357. The rules proposed are “Change of Chapter” or “CTH”.  The “Change of Chapter” rule would
not allow the inclusion of non-originating water of heading 22.01
[OPTION B:  Yes, provided
358. The goods of Chapter 4, headings 19.01, 20.09 or subheading 2106 undergo a last substantial
transformation when used in the production of juices fortified with minerals or vitamins, provided that
they meet certain supplementary criteria.  (The appropriate criteria have yet to be defined.)
359. The rule proposed is “CTH except Chapter 4, headings 19.01, 20.09 or subheading 2106.90”.
OPTION C:  No
360. The juices of heading 20.09 are considered to determine the essential character of juices
fortified with minerals or vitamins and do not therefore undergo a last substantial transformation.
These non-alcoholic beverages would have the origin of the country in which the juices originate.
361. The rule proposed is “CTSH except from heading 20.09”.
OPTION D:  No
362. The goods of Chapters 4, 20 or 21 do not undergo a substantial transformation when used in
the production of juices fortified with minerals or vitamins. These beverages would have the origin of
the country of the milk or other ingredients classified in Chapter 4, 20 or 21.
363. The rule proposed is “CTH except from Chapters 4, 20 and 21”.
Relevant HS Code:
ex-2202.90(b)
ISSUE No. 97: PRODUCING OTHER NON-ALCOHOLIC BEVERAGESOPTION A: YesG/RO/45/Ad d.8/Rev.2
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364. The products used in the production of the other non-alcoholic beverages of this subheading
undergo a last substantial transformation.
365. The rule proposed is “CTSH”.
OPTION B:  Yes, provided
366. The products, other than the waters of subheading 2202.10, used in the production of the
other non-alcoholic beverages of this subheading undergo a last substantial transformation.
367. The rule proposed is “CTH”.
OPTION C:  Yes, provided
368. The products, other than the waters of subheading 2202.10 or heading 22.01, used in the
production of the other non-alcoholic beverages of this subheading undergo a last substantialtransformation.
369. The rule proposed is “Change of Chapter”.
[OPTION D:  Yes, provided
370. The goods of Chapter 4, headings 19.01, 20.09 or subheading 2106 undergo a last substantial
transformation when used in the production of juices fortified with minerals or vitamins, provided that
they meet certain supplementary criteria.  (The appropriate criteria have yet to be defined.)
371. The rule proposed is “CTH except from Chapter 4, headings 19.01, 20.09 or subheading
2106.90”.
OPTION E:  No
372. The goods of Chapters 4, 20 or 21 do not undergo a substantial transformation when used in
the production of these non-alcoholic beverages.
373. The rule proposed is “CTH except from Chapters 4, 20 and 21”.
Relevant HS Code:
ex-2202.90(c)
ISSUE No. 98:  PRODUCING WINE FROM GRAPESOPTION A:  Yes374. Wine is a distinct product with quite different characteristics to grapes.  Grapes undergo a
substantial transformation when used to produce wine.
375. The rule would be “CTH”.
OPTION B: No
376. The essential character of wine is determined by the grapes.  Grapes do not therefore undergo
a substantial transformation when used for wine production.  The country of origin of wine is where
the grapes were produced.G/RO/45/Ad d.8/Rev.2
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377. The rule would be “CTH, except from Chapter 8”, which would mean that the country of
origin of wine was the country where the wine grap es were grown, (but see also the issue concerning
wine produced from grape must).
Relevant HS Code:
22.04References:
41.632, 41.745
ISSUE No. 99:  PRODUCING WINE FROM GRAPE MUSTOPTION A:  Yes
378. Wine is a distinct product with quite different characteristics to grape must.  Grape must
(2009.60 or 2204.21 - 2204.30) undergoes a dramatic change when used to produce wine which is a
substantial transformation.  The rule would be “CTS H”  or “CTSH, except from wines of subheadings
2204.10 to 2204.29”.
OPTION A1:  Yes, provided
379. Change from the grape must of subheading 2009.60, which is unfermented or has an alcohol
content not exceeding 0.5% by volume, is a substantial transformation.  The grape must of
subheadings 2204.21 - 2204.30, which has an alcohol content exceeding 0.5% by volume, is close to
wine and is not substantially tran sformed.  The rule would be “CTH”.
OPTION B: No
380. The essential character of wine or grape must is determined by the grapes.  Grapes do not
therefore undergo a substantial transformation when processed to grape must nor when further
processed to wine.  The country of origin of wine is where the grapes were produced.
381. Grape must is an intermediate product.  The rule for wine and for grape must would be “The
country of origin shall be the country in which the grapes were produced in their natural or
unprocessed state”.
Relevant HS Code:
22.04
References:
41.632, 41745
ISSUE No. 100:  BLENDING OF WINEOPTION A:  Yes382. Blending gives a specific character and taste to wine and is a substantial transformation.
Wine quality changes from year to year and from batch to batch.  Blending is a highly sophisticated
process based on the skill and experience of a blender which results in a change of character in the
wine.  To produce the same blend can involve different combinations of origins.
OPTION B:  Yes, providedG/RO/45/Ad d.8/Rev.2
Page 71
383. Wines of one origin blended in that country with no more than 25% by volume of content
originating in another country shall have the origin of the country where the blending was carried out
and in which the majority of the content of the wine originated.
OPTION C:  Yes, provided (plus a residual rule)
384. The essential character and the origin of wine is determined by the grapes.  Where wine is the
result of blending of two or more wines of different origin, the origin of the blended wine shall be the
country of origin of the wine that constitutes at least 85% by volume of the blended wine.  However,
where no single origin constitutes 85% by volume, the origin of the blended wine is the country where
the wine is blended.
OPTION D:  No
385. Wine does not change its essential character when blended.  The Technical Committee will
need to establish a residual rule to determine the country of origin of blended wines.
Relevant HS Code:
22.04
References:
41.539, 41.745, 40.988
ISSUE No. 101: OBTAINING PARTIALLY FERMENTED GRAPE MUST OR GRAPE MUST
WHERE THE FERMENTATION HAS BEEN ARRESTED OR PREVENTED BY THE ADDITIONOF ALCOHOL
OPTION A:  Yes386. Grape must partially fermented or where the fermentation has been arrested or prevented by
the addition of alcohol, both having an alcoholic strength by volume exceeding 0.5% is substantially
transformed from grape must unfermented or having an alcoholic strength by volume not exceeding
0.5%.  The rule would be “CTH” or “CTSH”.
OPTION B:  No
387. The country of origin of the grape must is the country in which the grapes were grown and
harvested.  The rules proposed are “CTH, except from Chapter 8” or “The origin of the goods shall bethe country in which the grapes were grown and harvested”.  The choice of rules is a terminology
issue.
Relevant HS Codes:
ex-2204.21(b), ex-2204.29(b), 2204.30
ISSUE No. 102:  DISTILLATION
OPTION A: Yes
388. Distillation, which changes vegetable products into ethyl alcohol, is a substantial
transformation.  The rule would be “CTH”.
OPTION B:  NoG/RO/45/Ad d.8/Rev.2
Page 72
389. Production of ethyl alcohol by distillation of sugars such as sugar cane, beet, grape sugar or
sugars of other fruit or vegetable or grain products is not a substantial transformation.  Ethyl alcohol
of an alcoholic strength of 80% by volume or higher has origin in the country in which the sugar cane
or beet, grapes or other fruits or vegetables or grains are obtained in their natural or unprocessed state.
Relevant HS Codes:
22.07, 22.08
References:
41.724, 41.745, 41.871
ISSUE No. 103:  PURIFICATION OR RE-DISTILLATION
OPTION A:  Yes390. Goods of an alcoholic strength by volume of 80%  or higher originating in different countries
are mixed, re-distilled and then diluted into the final product of 22.08.  Crude alcoholic strength ofheading 22.07 with impurities such as methanol, aldehyde, fusel oils (NO-Propyl), ISO-Butyl,
Sec-Butyl, NO-Amyl) and a number of other chem ical compounds with low boiling point is not
suitable for making certain kinds of alcoholic beverages.  Eliminating impurities is very important
since they can badly affect the taste of these spirits, even in small amounts.  For example, aldehyde
has a nasty odour and fusel oil causes hangovers.  Methganol is known to be extremely harmful tohumans.  Industry uses continuous distillation method” to remove all impurities to undetectable
amounts.  This process produces a chemically different alcoholic strength (odourless, colourless and
tasteless) from the original crude strength.  Therefor e the rule should be “CTH or changes within the
subheading by purification”.
OPTION B:  Yes, provided
391. Processing ethyl alcohol to eliminate at least 80% of impurities, or modification of the
alcoholic strength by concentration, distillation or  any other process is a substantial transformation.
OPTION C:  No
392. Distillation is a substantial transformation. Change within heading 22.07 by purification or
further distillation does not represent a substantial transformation.  The rule would be “CTH”.
Relevant HS Code:
2207.10
References:
41.724, 41.745, 41.871, 41.877
ISSUE No. 104:PRODUCTION OF SPIRITS, LIQUEURS AND OTHER SPIRITUOUS
BEVERAGES; CHANGES OF ALCOHOLIC STRENGTH BY DILUTION
OPTION A:  Yes393. Change between headings 22.07 and 22.08 is in all cases a substantial transformation.  The
rule would be “CTH”.
OPTION B:  Yes, providedG/RO/45/Ad d.8/Rev.2
Page 73
394. The production of spirit drinks of heading 22.08 with an alcohol content of less than 80% by
volume involves much more than mere dilution of the undenatured alcohol of heading 22.07.  It
requires special know-how.  Other ingredients are also added for flavouring.
395. The rule for heading 22.08, other than for ex -2208.90(a), would be “CTH”.  The rule for
ex-2208.90(a) (“undenatured ethyl alcohol of an alcoholic strength by volume of less than 80%”),
would be “CTH except from heading 22.07”.
OPTION C:  No
396. Changes of heading between headings 22.07 and 22.08 as a result of changes to the alcoholic
strength by concentration or other process, or merely by dilution, are not substantial transformation.
The rule for heading 22.07 would be “CTH except from heading 22.08”.
397. The rule for 22.08 could be “CTH except from heading 22.07 if as a result merely of dilution”
or a Chapter Note could be established for the heading : “Change to heading 22.08 from heading
22.07 merely by dilution is not a substantial transformation”.
Relevant HS Codes:
2207.10, 22.08
References:
41.745, 41.871, 41.877
ISSUE No. 105: DENATURING OF SPIRITS
OPTION A:  Yes
398. Spirits of heading 22.08 undergo a substantial transformation when denatured by the addition
of substances to render them unfit for drinking.  The rule would be “CTH”.
OPTION B:  No
399. Denaturing of the goods of headings 22.07 or 22.08 does not involve a substantial
transformation.  The rule would be “CTH except from heading 22.08 [except by denaturing]”.  The
choice of rule depends on the decision on the issue of concentration.
Relevant HS Code:
2207.20
Reference:
41.871
ISSUE No. 106:  BLENDING WHISKEY OR OTHER SPIRIT DRINKSOPTION A:  Yes
400. Blended whiskies amount to approximately 90 % of the finished products distributed on the
market.  The purpose of blending is to enhance individual characteristics such as flavour and taste,
and to guarantee the quality of each brand of whiskey and maintain its stable supply.  Furthermore,blending is not simple mixing but involves a highly sophisticated process of mixing a lot of single
malt and single grain whiskies of different varieties, based on the skill and experience of the blender.
Finally, because the percentage of each ingredient of the same brand whiskey is not necessarily fixedG/RO/45/Ad d.8/Rev.2
Page 74
and fluctuates with each production, it is likely to occur that the origin of the same brand of blended
whiskies may differ from batch to batch, and this would have a detrimental effect on stable trade
transactions and would cause confusion about markings among consumers.
401. Each single whiskey has its unique balance of congeners and flavour unequal to other single
whiskies.  A blended whiskey made by putting vari eties of single whiskies together possesses as
entirely different congener balance and flavour from its constituent single whiskies.  The blending is
carried out to achieve a particular character.  The rule would be “change within the subheading
resulting from blending and putting into bottles or other containers for retail sale”.
OPTION B:  No
402. Blending of spirit drinks does not alter the essential character of the good as a whiskey,
brandy or other spirit drink and is not a substantial transformation.
403. The rule would be “CTH”.
Relevant HS Code:
22.08
References:
41.531, 41.724, 41.745, 40.988
ISSUE No. 107:ADDITION OF FLAVOURING INGREDIENTS IN THE FORM OF
NON-ALCOHOLIC OR ALCOHOLIC PREPARATIONS
OPTION A:  Yes
404. Flavouring ingredients in the form of non-alcoholic or alcoholi c preparations undergo a
substantial transformation when used in production of spirits, liqueurs or other spirituous beverages.
The rule proposed is “CTH”.
OPTION B : Yes, provided
405. A de minimis of 10 % is essential in heading 22.08 to allow for the use of alcoholic base
products in the flavouring of distilled spirits.
OPTION C:  No
406. The preparation of spirit drinks, liqueurs, alcoholic cordials or other spirituous preparations
involves a substantial transformation.  However, the mere addition of alcohol to a beverage base
(2106.90) does not involve substantial transformation.  The rule would be “CTH except from
2106.90”.
Relevant HS Code:
22.08
ISSUE No. 108:MAKING VINEGAR; MAKING SU BSTITUTES FOR VINEGAR FROM ACETIC
ACID
OPTION A:  YesG/RO/45/Ad d.8/Rev.2
Page 75
407. Production of vinegar from malt (11.07), beer (22.03 ), wine (22.04), cider or other fermented
beverages (22.06), spirits (22.08), or acetic acid (29.15) is a substantial transformation.  The rule
would be “CTH”.
OPTION B:  Yes, provided
408. Production of vinegar, other than substitutes for vinegar obtained from acetic acid, is a
substantial transformation.  The rule would be “CTH except from subheading 2915.21”.
OPTION C:  No
409. Production of vinegar from malt, beer, wine, cider or other fermented beverages, spirits, or
acetic acid is not a substantial transformation.  Wine left in the air naturally turns to vinegar. The rule
would be “CTH except from headings 11.07, 22.03, 22.04, 22.06, 22.08, 29.15”
Relevant HS Code:
22.09
CHAPTER 23
ISSUE No. 109: THE PRODUCTION OF VEGETABLE MATERIALS, VEGETABLE WASTE OR
VEGETABLE RESIDUES OF A KIND USED IN ANIMAL FEEDING  -(TERMINOLOGY ISSUE)
OPTION A:  Yes, terminology issue
410. The heading covers vegetable products, vegetable waste, and residues and by-products from
the industrial processing of vegetable materials. It includes, inter alia , acorns and horse-chestnuts,
maize (corn) cobs after removal of the grain; maize (corn) stalks and leaves, beet or carrot tops,
peelings of vegetables (pea or bean pods, etc.), waste of fruit (peel and cores of apples, pears, etc.),
bran obtained as a by-product from the crushing of mustard seed, residues left after the preparation of
coffee substitute from cereal grains or other vegetable materials, by-products obtained by
concentrating residual waters from citrus fruit juice manufacture, sometimes known as " citrus fruit
molasses ", residues from the hydrolysis of maize (corn) cobs to obtain 2-furaldehyde, known as
"hydrolysed ground corn cobs".
411. Only some products of the heading are waste products.  The heading includes acorns and
horse chestnuts (2308.10) which are gathered or collec ted from trees.  A Basket 1 decision has already
been agreed for the rule “CTH”.  No different rule  is necessary for the waste materials of the heading.
OPTION B:  Yes, terminology issue
412. The vegetable waste or residues, etc. of this heading are obtained as a result of manufacturing
or processing operations or from consumption.
413. In the interest of coherence the Technical Committee should adopt a rule for these waste
products based on the general approach used for other waste and scrap headings.
Relevant HS Code:
ex-23.08(a)
ISSUE No.110: OBTAINING PREPARATIONS OF A KIND USED IN ANIMAL FEEDING THAT
CONTAIN MILK OR MILK PREPARATIONSG/RO/45/Ad d.8/Rev.2
Page 76
OPTION A:  Yes
414. The preparations are not necessarily “simple” mixtures.  Some could be very sophisticated.
The appropriate rule would be “CTH”
OPTION B:  Yes, provided
415. The milk or milk preparations (of Chapter 4 or heading 19.01) can be combined in a simple
mixture to produce milk based animal feeds of this heading.  An example is a milk replacement
supplement used for cows which contains more than 50% of milk solids with added vitamins and
sugar.
416. a split heading should be established.  For products which contain more than 50% of milk
solids the rule would be “CTH except from Chap ter 4 or heading 19.01”.  For other goods of the
heading the rule would be “CTH”.
Relevant HS Code:
ex-2309.90(a)
CHAPTER 24ISSUE No. 111: OBTAINING TOBACC O REFUSE - (TERMINOLOGY ISSUE)
OPTION A:  Yes, terminology
417. Tobacco refuse is a waste resulting from manufacturing and processing operations.  The fact
that it can be re-used is not relevant.  Most waste products can be re-used.  The rule would be based
on the general approach used for other waste products: “The origin of the goods shall be the country
in which the tobacco refuse of this subheading is derived and collected from manufacturing or
processing operations”.
OPTION B:  Yes, terminology
418. Tobacco refuse can simply be unmanufactured tobacco in pieces.  It is not “waste and scrap”
and can be used to make snuff, chewing tobacco etc.  The rule should be based on the general
approach for goods obtained in their natural or unprocessed state.
Relevant HS Code:
2401.30
419. The Technical Committee has agreed that the question of the rules of origin for mixtures  or
blends of tobacco, including mixtures of manufacture d tobacco would be left for a residual rule.  The
content and scope of such a residual rule (including the possibility that the country of origin of such a
mixture could be the country in which the blending occurred) was left for further discussion.
ISSUE No. 1124: EXTRACTION OF VEGETABLE SAPS AND EXTRACTS;
OTHER PRODUCTS DERIVED FROM VEGETABLES, EXCEPT PECTINATES AND
PECTATES AND MUCILAGES AND THICKENERS, MODIFIED
                                                     
4 This Issue deals with the same subj ect as Issue No. 39 in document G/ RO/22/Add.1 (p.31), already submitted to
the Committee on Rules of Origin for decision.  It is purely and simply a  question of adding the products of heading 13.02
not covered by Issue No. 39.  The products concerned are pectic substances, agar-agar and other mucilages and thickeners,not modified, derived  from vegetable products.G/RO/45/Ad d.8/Rev.2
Page 77
OPTION A:  Yes
420. The extraction of vegetable saps and extracts, and other products derived from vegetables,
except pectinates and pectates and mucilages and thickeners, modified, constitutes a last substantial
transformation.  The origin of these goods is the country in which these products are extracted from
the plants containing them.
The origin rule should be:
CC (CAN)(US)(MEX)(TH)(JPN) (for head ing ex 13.02 (a) and (b) (CH)(MOR))
OPTION B:  No
421. The extraction of vegetable saps and extracts, and other products derived from vegetables,
except pectinates and pectates and mucilages and thickeners, modified, does not constitute a last
substantial transformation.  The origin of these goods remains the country in which the plants grew
from which these goods are extracted.
The origin rule should be:
“The country of origin of the goods of this split heading shall be the country in which the plant grew”
(EC)(EGY)(KOR)(PHI) (for head ing ex 13.02(e) (CH)(NOR))
422. In the case of medicinal plants or herbs like ginseng, extraction or other similar operations do
not constitute a substantial transformation because the processes have nothing to do with medicinal
ingredients.  Products of medicinal plants or herbs are available commercially in various forms such
as extracts, concentrates, powder, etc.  However, th e effectiveness or uses of these kinds of products,
as shown in the case of ginseng, mainly depends on the raw plants or herbs.  Therefore, the rule
should be “wholly obtained”.
Note:  This last paragraph has been added at the request of the KOR Delegation in order to
emphasize that Delegation’s particular interest in vegetable saps and extracts derived from plants
and parts of plants (including seeds and fruits) of heading 12.11 (ex 13.02 (a)).
Relevant HS Codes:
ex 13.02(a), (b) and (e)
Reference Documents:
41.755, 42.285 and 42.363
ISSUE No. 113:OBTAINING OF PECTINATES AND PECTATES FROM PECTIC SUBSTANCES
(OR PECTINS)
OPTION A:  Yes
423. The obtaining of pectinates and pectates from pectic substances (or pectins) reflects the last
substantial transformation.  The process is complex and is carried out as follows : pectin is mixed in
isopropanol.  To minimize the volume of alcohol used, the extract is concentrated in a three-stage
evaporator with the addition of reactive chemicals.  The required reactions take place over seven days
at a controlled temperature.  The pectin is then filtered and washed with isopropanol to remove
contaminants and chemicals.  It is then dried and milled.  The pectinates and pectates obtained in this
way have new properties.  High methoxyl pectins have new proprieties in the degree of esterification
and gelling speed.  The final product is adjusted to specific jam production conditions and can be used
in confectionery jellies and gelling sugar for home-made jam.  Low methoxyl pectins have a different
degree of esterification (below 50 %) and no sugar is required for gelation.  These pectins have newG/RO/45/Ad d.8/Rev.2
Page 78
uses in low-calories jam, milk applications, baking jam and heat-resistant, spreadable jam.  Amidated
pectins have a different degree of amidation and esterification and comport a heat reversibility in the
gel formation process.  They are used in tart jellies, low-calorie jam, heat-resistant, spreadable jam
and as a household gelling agent.
The origin rule should be:
CTHS (CAN)(CH)(EC)(EGY)(NOR)
OPTION B:  No
424. The obtaining of pectinates and pectates from pectic substances (or pectins) does not reflect
the last substantial transformation.
The origin rule is expressed in two ways:
CC (US)(JPN)(MEX)(MOR)(PHI)(TH)
The country of origin of the goods of this split heading shall be the country in which the plant grew
(KOR)
Relevant HS Code:
ex 13.02 (c)
Reference Documents:
41.755, 42.285 and 42.537
ISSUE No. 114: MODIFICATION OF VEGETABLE MUCILAGES AND THICKENERS
OPTION A:  Yes
425. The modification of vegetable mucilages and thickeners reflects the last substantial
transformation.  This modification is the result of chemical reactions producing a new product.
Mucilages and thickeners are gel-forming polysaccharides that are obtained from plants.  As
polysaccharides, they can be chemically modified in the same way as other polysaccharides such as
cellulose (heading 39.12) or alginates (heading 39.13) by the following processes:
-            Etherification, which cha nges part of the hydroxyl-groups to ether-groups;
-            Esterification, by introducing an acid rest;
-            Treatment with acids or alkalis, i.e. neutralization or acidification of the carboxylic- or sulfo-
groups that are present in the natural product (“acid mucilages”);
-            Treatment with borax, which includes a mixing process for stabilization against micro-
organisms.
426. Consequently, the origin of vegetable mucilages and thickeners, modified, is the country
where these products have been modified.
The origin rule should be:
CTHS (EC)(EGY)(NOR)(SG)
OPTION B:  No
427. Modification alone of vegetable mucilages and thickeners cannot reflect the last substantial
transformation.G/RO/45/Ad d.8/Rev.2
Page 79
The origin rule is expressed in two ways:
CC (CAN)(KOR)(US)(JPN)(MOR)(MEX)(PHI)(TH)
Relevant HS Code:
ex 13.02 (d)
Reference Documents:
41.755 and 42.285
ISSUE No. 115:ANIMAL OR VEGETABLE FATS AND OILS OR THEIR FRACTIONS:
HYDROGENATION, INTER-ESTERIFICATION, RE-ESTERIFICATION, ELAIDINIZATION;
BOILING, OXIDATION, DEHYDRAT ION, SULPHURIZATION, BLOWING,
POLYMERIZATION BY HEAT IN VACUUM OR IN INERT GAS OR OTHER. CHEMICAL
MODIFICATION;  CHANGES THROUGH CHEMICAL REACTION
(a) Heading 15.16
OPTION A:  Yes428. The processes of hydrogenation, inter-esterification, re-esterification
 or elaidinization of
animal or vegetable fats and oils classified outside heading 15.16 are considered to reflect the last
substantial transformation (AUS, CH, EC, E GY, JPN, KOR, MAL, MEX, NOR, NZ, SG).
429. There is also substantial transformation when a chemical reaction is applied to a fat or oil
classified in heading 15.16 resulting in changes within the heading.
430. Oils in heading 15.16 can be further processed via a chemical process which changes the
composition of the oil by chemical reaction at a high temperature in the presence of a catalyst,
followed by filtration treatment with a activated earth (bleaching process) and deodorization.  Theoverall properties and capability of the oil are changed and provide the opportunity to determine the
melting properties to achieve the final product.  The melting behaviour is totally and irreversibly
changed (AUS, EC, JPN).
The rule of origin should be:
CTH (KOR) (MAL)
CTH, or change by refining (CH) (EGY) (MEX) (NOR) (NZ) (SG)
CTH, or change within the heading following a chemical reaction (EC) (JPN)CTH, or change by refining or by chemical reaction (AUS)
OPTION B:  No431. The processes of hydrogenation, inter-esterification, re-esterification or elaidinization of
animal or vegetable fats and oils cannot be regarded as reflecting the last substantial transformation
(CAN, PHI, US).  Moreover, changes within heading 15.16 by chemical reaction also cannot be
regarded as origin conferring as these processes bring about only insignificant changes in the input
materials such as consistency, melting point, etc.
The rule of origin should be:
CC (CAN) (PHI) (US)
(b) Heading 15.18:
OPTION A:  YesG/RO/45/Ad d.8/Rev.2
Page 80
432. Changes by chemical reaction on an animal or vegetable fat, oil or fraction thereof, already
classified in heading 15.18, (chemically modified other than by hydrogenation, inter-esterification, re-
esterification or elaidinization) fully reflects the last substantial transformation.  Since the
modification process applies to a fat, oil or fraction thereof already classified in heading 15.18 it does
not entail any change of tariff classification.  The or igin of such a fat, oil or fraction thereof is the
country in which it was chemically modified again.
The rule of origin should be:CTH, or change within heading 15.18 by chemical reaction (EC)(AUS)(JPN)
OPTION B:  No433. Changes by chemical reaction on an animal or vegetable fat, oil or fraction thereof, already
classified in heading 15.18 (chemically modified other than by hydrogenation, inter-esterification, re-
esterification or elaidinization) does not reflect the last substantial transformation.  The origin of such
a fat, oil or fraction thereof is the country in which it was chemically modified for the first time.
The rule of origin should be:CTH
Relevant HS Codes:
15.16 and 15.18
References:
42.284, 42.574
ISSUE No. 116:OBTAINING NON-LIQUID MARGARINE FROM ANIMAL OR VEGETABLE
FATS OR OILS OR MIXTURES THEREOF CLASSIFIED IN OTHER HEADINGS OF
CHAPTER 15
OPTION A:  Yes434. Obtaining non-liquid margarine from products classified in other headings of Chapter 15 fully
reflects the last substantial transformation.  The origin of the non- liquid margarine is the country in
which it was obtained from fats, oils or mixtures of fats and oils classified in other headings of
Chapter 15.
The rule of origin should be:
CTH  (AUS) (CH) (EC) (EGY) (JPN) (KOR) (MAL) (MEX) (SG)
OPTION B:  No
435. Obtaining non-liquid margarine from products classified in the other headings of Chapter 15
does not reflect the last substantial transformation.  In determining the origin of non-liquid margarine,
the origin of additives such as milk, vitamins, etc. is disregarded.  The origin of non-liquid margarine
is the country of extraction of the fats or oils from animals or vegetables.
The rule of origin should be:
CC  (CAN) (PHI) (US)
Relevant HS Code:
1517.10G/RO/45/Ad d.8/Rev.2
Page 81
References:
42.284, 42.574
ISSUE N° 117: OBTAINING FOOD PREPARATIONS OF ANIMAL OR VEGETABLE FATS OR
OILS OR FRACTIONS OF DIFFERENT FATS OR OILS OF CHAPTER 15 FROM FATS, OILSOR OTHER PRODUCTS CLASSIFIED IN OTHER HEADINGS OF CHAPTER 15
OPTION A:  Yes436. Obtaining food preparations of animal or vegetable fats or oils or fractions of different fats or
oils of Chapter 15 from fats, oils or other products classified in other headings of Chapter 15 fully
reflects the last substantial transformation.  The origin of the goods classified in split subheading
ex 1517.90 (a) (or ex 1517.90 (b)) is the country in which these preparations are obtained from the
products classified in other headings of Chapter 15.
The rule of origin should be:
CTH (AUS) (CH) (KOR) (MAL) (NOR) (SG)
CTH, provided that the change does not result from a simple mixing (JPN)CTH : only for food preparations of a kind used as mould release preparations and other similar
preparations (such as shortenings, frying fats) covered by subheading ex 1517.90 (a) (EC)
CTH, or change by refining (EGY)
OPTION B:  No437. Obtaining food preparations of animal or vegetable fats or oils or fractions of different fats or
oils of Chapter 15 from fats, oils or other products classified in other headings of Chapter 15 does not
reflect the last substantial transformation.  The origin of the goods classified in split subheading ex
1517.90 (a) (or ex 1517.90 (b)) is the country of extraction of the fats or oils used to obtain thepreparations of subheading ex 1517.90 (a) (or ex 1517.90(b)), from animals or vegetables.
The rule of origin should be:
CC (CAN) (MEX) (PHI) (US)
CTH, except from other headings of Chapter 15 (for other preparations covered by subheading ex
1517.90 (b)) (EC)
Relevant HS Codes:
ex 1517.90 (a) and ex 1517.90 (b)
Reference:
42.284, 42.574
ISSUE No. 118:MANUFACTURE OF CRUDE GLYCEROL FROM GLYCEROL WATERS OR
GLYCEROL LYES
OPTION A:  Yes
438. The manufacture of crude glycerol from glycerol waters or glycerol lyes fully reflects the last
substantial transformation.  The origin of the goods classified in split heading ex 15.20 (a) is the
country where the crude glycerol is manufactur ed from glycerol water or glycerol lyes.
The rule of origin should be:
CTHS  (EC)G/RO/45/Ad d.8/Rev.2
Page 82
OPTION B:  No
439. The manufacture of crude glycerol from glycerol waters or glycerol lyes does not reflect the
last substantial transformation.  The origin of the goods classified in split heading ex 15.20 (a) is the
country where the goods are obtained from products classified in other headings of Chapter 15.
The rule of origin should be:
CTH (US)
Relevant HS Code:
ex 15.20 (a)
Reference:
42.284
ISSUE No. 119:OBTAINING DEGRAS FROM OTHER PRODUCTS CLASSIFIED IN
CHAPTER 15
OPTION A:  Yes
440. Obtaining degras from other products classified in Chapter 15 fully reflects the last substantial
transformation.  The origin of the goods shall be the country where the degras classified in split
heading ex 15.22 (a) are obtained from other products classified in Chapter 15.
The rule of origin should be:
CTH  (CH) (EC) (EGY) (JPN) (KOR) (MAL) (NOR) (TH)
OPTION B: No
441. Obtaining degras from other products classified in Chapter 15 does not reflect the last
substantial transformation.  The origin of the goods shall be the country of extraction of the products
from which the degras classified in this split heading are obtained.
The rule of origin should be:
CC: (CAN) (MEX) (PHI) (US)
Relevant HS Code:
ex 15.22 (a)
References:
42.284, 42.574
ISSUE No. 120:OBTAINING RESIDUES RESULTING FROM THE TREATMENT OF FATTY
SUBSTANCES OR ANIMAL OR VEGETABLE WAXES FROM OTHER PRODUCTS
CLASSIFIED IN CHAPTER 15
OPTION A:  Yes
442. Obtaining residues resulting from the treatment of fatty substances or animal or vegetable
waxes fully reflects the last substantial transformation.  The origin of these residues shall be the
country where they were obtained as a result of treatment of fatty substances (except degras), animal
or vegetable waxes.G/RO/45/Ad d.8/Rev.2
Page 83
The rule of origin should be:
CTH (CH) (EC) (EGY) (JPN) (KOR) (MAL) (NOR) (PHI) (TH)
OPTION B:  No
443. Obtaining residues resulting from the treatment of fatty substances or animal or vegetable
waxes does not reflect the last substantial transformation.  The origin of these residues is the country
of extraction of the fatty substances or animal or vegetable waxes from which the residues are
obtained.
The rule of origin should be:
CC (CAN) (MEX) (US)
Relevant HS Code:
ex 15.22 (b)
Reference:
42.284, 42.574
ISSUE No. 121:  OBTAINING MIXTURES OF VEGETABLES OR FRUITS CLASSIFIED IN
SUBHEADINGS 0710.90, 0711.90, 0712.90 OR  0813.50
444. Mixtures of frozen vegetables are classified in subheading 0710.90, those provisionally
preserved (by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions) but
unsuitable in that state for immediate consumption are classified in subheading 0711.90, those of
dried vegetables in subheading 0712.90 and those of dr ied fruits or nuts of Chapter 8 in subheading
0813.50.
OPTION A: YES (CAN)
445. “Mixtures” of vegetables classified in subheading 0710.90, 0711.90 or 0712.90 are very
complex and sophisticated, being made up of several sorts of ingredient and requiring a very short
cooking time in a microwave oven.  These mixtures are prepared for cooking taking account of the
fact that some components cook faster than others.  The manufacturers skilfully ensure that various
ingredients normally requiring different cooking times will cook in a standard time in a microwaveoven.  The dimension or size of each component of the mixture is calculated accordingly.  The
country of origin of these mixtures is therefore the country where the mixture was obtained.
446. In most cases, preparing mixtures of dried fruit or nuts of Chapter 8 classifiable in subheading
0813.50 requires the addition of seasonings, preservatives and other ingredients.  A certain degree ofskill is also required in terms of the selection, size and balance of the constituents.  The mixtures
obtained are new products and different from the initial products used, and should therefore be
considered as originating in the country where the components were mixed.
OPTION B: No447. Producing mixtures does not constitute a substantial transformation (EC, IND, NZ).448. In the case of mixtures of various vegetables or fruit of the same origin, the country of origin
remains the country in which the plants grew from which the various components of the mixture wereobtained (IND, NZ).G/RO/45/Ad d.8/Rev.2
Page 84
449. In the case of mixtures of various vegetables or fruit of different origins, the country of origin
is to be determined by applying a residual rule (IND) based on weight (NZ).
450. The origin of mixtures of vegetables or fruit has to be determined by a residual rule (EC)
RELEVANT HS CODES:  0710.90, 0711.90, 0712.90 and 0813.50.
ISSUE No. 1225: OBTAINING MIXTURES OF COFFEE:
OPTION A:  Yes, provided451. Blending of coffee substantially transforms the input used.  The finished blend is different
from the starting materials in terms of fragrance and flavour.  Blending is also a process that requires
great skill.  Each blending coffee is based on the need to satisfy a precise taste requirement on the part
of the consumer.  Consequently, the origin of blended coffee is the country where the blending takes
place.  (JPN)
OPTION B: No
452. In itself, the blending of coffee is not considered a substantial transformation.  The origin of
blends of different varieties of coffee of the same origin or of various origins is determined by
application of the residual rules (EC).  In this case, it is proposed that the weight criterion be used.
OPTION C:453. This needs to be discussed when the product specific rule for coffee is addressed.  This is an
issue that is meant to be examined at the CRO meet ing.  In this respect a Chapter Note was included
in the matrix.
RELEVANT HS CODE:  09.01ISSUE NO. 123: OBTAINING MIXTURES CLASSIFIED IN CHAPTER 15454. There are two types of mixture in Chapter 15:- mixtures of products of the same type remainin g classified in the same heading (subheading);
and
- mixtures of two or more types of fats or oils classifiable in heading 15.17, if edible, and in
heading 15.18 if not.
455. The procedure chosen by Members for which obtaining mixtures from this Chapter is a
substantial transformation differs somewhat from the horizontal method.  The scope of the proposals
also differs.  Some Members cover Chapter 15 as a whole, whereas others apply their proposal only toproducts of headings 15.07 to 15.15.
                                                     
5 Secretariat Note
During the 17th Session when accepting draft Doc. OC0028, Members made several substantial
comments on Issue 122.  The Secretariat undertook to put these comments on paper after the session and
seek further clarification from the participants at the 17th Session.  Consequently, the text presented below is
subject to confirmation by the participants at the 17th Session.G/RO/45/Ad d.8/Rev.2
Page 85
OPTION A: Yes, provided that:
456. The country in which a mixture classified in [headings 15.07 to 15.15] [Chapter 15] is
obtained after satisfying the criteria set out in the fo llowing definition is the country of origin of this
mixture.  This definition, proposed as the Note to Chapter 15, reads as follows:
For the purposes [of headings 15.07 to 15.15] [of Chapter 15:
(a) the deliberate and proportionally controlled mixing or blending (including dispersing) of
materials to conform to predetermined specifications which results in the production of a good
having attained new physical, chemical or technical characteristics in terms of taste, odour or
purity and use different from the input materials is considered to be origin conferring.
(b) However, the addition of diluents only is to be disregarded in determining the origin of the
good. (CH, NOR, SG)
OPTION B: No457. The preparation of mixtures classified in Chapter 15 does not constitute a substantial
transformation (EC, CAN, IND , BRA, ARG).
458.       In the case of mixtures of various types of fats or oils originating in the same country, th
e
country of origin of the mixture remains that wh ere the plants grew (whence the animals came) from
which the different components of the mixture were obtained (IND, PHI).
459.       In the case of mixtures of various types of fats or oils of different origins , the country of
origin is to be determined by applying a residual rule.
460. The origin of mixtures of fats or oils has to be determined by a residual rule.  (CAN, EC)
RELEVANT HS CODES:  [15.07 to 15.15]  [Chapter 15]ISSUE NO. 124:  OBTAINING MIXTURES CLASSIFIED IN EACH OF THE SUBHEADINGS OF
HEADING 19.01 (OF CHAPTER 18) FROM MATERIALS ALSO CLASSIFIEDIN EACH OF THOSE SAME SUBHEADINGS
461. The products classified in heading 19.01 are largely made up of mixtures.
These mixtures can be obtained:
(a) directly from materials classified outside heading 19.01 (milk, flour, malt, etc.);(b) from materials classified in another subheading of heading 19.01 (especially changes from
subheading 1901.90 to subheading 1901.10 or 1901.20);  or
(c) from materials classified in the same subheading.462. The mixtures in (a) and (b) above are covered by Issues 65 and 66 of Doc. 42.146 submitted
to the Committee for decision on 19 January 1998.G/RO/45/Ad d.8/Rev.2
Page 86
463. This classification issue relates only to mixtur es covered in (c) above, i.e. those remaining
classified in the subheading in which the differen t materials involved in the manufacture of the
mixture are classified.  That manufacture does not entitle change on tariff classification.
464. Given the scope of the subheadings of heading 19.01, this issue only seems to relate to the
mixtures classified in subheadings 1901.20 and 1901.90.
OPTION A: Yes (CAN)6
465. Obtaining a mixture from materials classified in the same subheading is a last substantial
transformation.  A mixture or dough of subhead ing 1901.20 mixed with another mixture or another
dough of the same subheading with a view to obtain ing an intermediary product for the preparation of
bakers’ wares is a substantial transformation.  It may be a mixture of a dough (or a mixture) intended
for preparing bread and another dough for preparing cakes on biscuits, and vice versa.  It may also be
a mixture of two or more preparations for infant use, not put up for retail sale.
466. These operations are generally intended to enrich a dough (or a mixture) with the components
of another dough or another mixture with specific ingredients.  They thus make it possible to obtain a
balanced intermediary product.  The country of origin of a mixture of doughs, mixtures or
preparations classified in subheading 1901.20 or 1901.90, obtained without a change of tariff heading,
is therefore the country in which this mixture was obtained.
OPTION B: No (ARG, BRA, EGY, IND)
467. Obtaining a mixture from materials classified in the same subheading is not a substantial
transformation.
RELEVANT HS CODES:  1901.20 and 1901.90, Chapter 18 (CAN)
ISSUE No. 125:  OBTAINING MIXTURES OF TOBACCO CLASSIFIED IN HEADING 24.01 OR
24.03 FROM TOBACCO OF DIFFERENT ORIGINS :
OPTION A: Yes
468. Obtaining mixtures of tobacco from tobacco originating from several countries is the last
substantial transformation, as the characteristics of the mixed product are completely different from
those of the tobacco used.  The country of origin of these mixtures is the country in which the tobacco
was mixed according to the criteria set by the following Chapter Note :
"For the purposes of headings 24.01 and 24.03, any deliberate and proportionally controlled
mixing or blending of tobacco resulting in a product with a determined composition confers
origin” (JPN, SEN , EGY, NZ).
OPTION B: No
                                                     
6 CAN considers it necessary to have a Note for Chapter 18 setting out the origin criteria which make it
possible to regard as substantial transformation the obtaining of mixtures within the headings and subheadingsof Chapter 18 without there being a change of classification.  Since this is the same issue as for heading 19.01,
the Technical Committee decided to refer this proposal to the Committee for decision under Issue no. 124
above, which deals with the same problem for heading 19.01.G/RO/45/Ad d.8/Rev.2
Page 87
469. Mixing tobacco is not the last substantial transformation.  The country of origin of a mixture
of tobacco obtained from tobacco of different origins is to be determined by applying a residual rule
(EC, IND, CAN).
RELEVANT HS CODES:  24.01 and 24.03G/RO/45/Ad d.8/Rev.2
Page 88
CHAPTER 1
[Criteria to apply A ppendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[weight or volume criterion, as applicable  (NZ)]
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
01.01 Live horses, asses,
mules and hinnies[The country of origin of the goods of this
heading shall be the country in which the
animal was born (CH)(MAL)(CAN)(MEX)(US)(ARG)(NZ)(FIJ)(AUS)(THA)(IND)
(BRA)(HON)]Submitted to CRO for decision
(Doc. 42.146, Issue 1).
[ The country of origin of the goods of this
heading shall be the country in which the
animal was born and raised (EC) (JPN)
(MOR)]Please note that, in principle, only the
issue relating to the last stage ofprocessing is always indicated in
column E
[ The country of  origin of the goods of thisheading shall be the country in which the
animal was fattened for at least 6 months; orthe country in which the animal was born
(EGY) (KOR) (DOM) (EC) (JPN) (MOR)
[(PHI)] (VEN)]So e.g. for sausages the issues of raising
of animals is not mentioned, because it
was already relevant in earlier stages ofproduction. (Sec)
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 6 months; or
the country in which the animal was born and
raised (MOR)]
- Horses : As specified for headingG/RO/45/Ad d.8/Rev.2
Page 89HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
   0101.11 -- Pure-bred breeding
animalsAs specified for heading
   0101.19 -- Other
   0101.20 - Asses, mules and
hinnies
01.02 Live bovine animals. [The country of  origin of the goods of this
heading shall be the country in which the
animal was born (CH) (CAN) (MEX) (US)
(ARG) (NZ) (FIJ)(AUS)(THA)(IND)(BRA)
(HON)]Submitted to CRO for decision
(Doc. 42.146, Issue 1).
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 8 months; or
the country in which the animal was born
(KOR)]
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 6 months; or
the country in which the animal was born
(EGY) (MAL)]
[ The country of origin of the goods of this
heading shall be the country in which the
animal of a weight not exceeding 300 kg was
fattened for at least 8 months; or
the country in which the animal was born and
raised (MOR)]G/RO/45/Ad d.8/Rev.2
Page 90
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the bovine animals
of a weight exceeding 300 kg shall be the
country in which the animal was fattened forat least 8 months  to come from a weight of
300 kg or less to a weight of more than 300
kg;
the country of origin of the other bovine
animals of this heading shall be the country inwhich the animal was born and raised (EC)
(JPN) (MOR)(DOM)(KOR)(VEN)(PHI)]
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened to come from a weight  of
330 kg or less to a weight of 450 kg or more;
or the country in which the animal was born
(PHI)]
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened to come from a weight of
less than 300 kg to a weight of more than 300
kg; or the country in which the animal was
born (JPN)]
0102.10 - Pure- bred breeding
animalsAs specified for heading
0102.90 - Other
01.03 Live swine. [ The country of origin of the goods of this
heading shall be the country in which the
animal was born (CH) (CAN) (MEX) (US)
(ARG) (NZ) (FIJ)(AUS)(THA)(IND)(BRA)(HON)]Submitted to CRO for decision
(Doc. 42.146, Issue 1).G/RO/45/Ad d.8/Rev.2
Page 91HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 4 months; or
the country in which the animal was born
(KOR)]
[ The country of origin of the goods of this
heading shall be the country in which the
animal of a weight not exceeding 50 kg was
fattened for at least 4 months; or
the country in which the animal was born and
raised (MAL)]
[The country of origin of the swine of a weight
exceeding 50 kg shall be the country in which
the animal was fattened for at least 4 months
to come from a weight of 50 kg or less to aweight of more than 50 kg;
the country of origin of other swine of this
heading shall be the country in which the
animal was born and raised (EC) (JPN)
(MOR)(DOM)(KOR)(VEN)(PHI)]
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened to come from a weight of
15 kg or less to a weight of 80 kg or more; or
the country in which the animal was born
(PHI)]G/RO/45/Ad d.8/Rev.2
Page 92
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened to come from a weight of
less than 50 kg to a weight of 50 kg or more;
or the country in which the animal was born
(JPN)]
0103.10 - Pure-bred breeding
animals
- Other :As specified for heading
0103.91 -- Weighing less than 50
kg
0103.92 -- Weighing 50 kg or
more
01.04 Live sheep and goats. [ The country of origin of the goods of this
heading shall be the country in which the
animal was born (CH) (CAN) (MEX) (US)
(ARG) (NZ) (FIJ)(AUS) (JPN)(THA)(IND)
(BRA)(HON)]Submitted to CRO for decision
(Doc. 42.146, Issue 1 and Doc.
42.146/Cor).
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 2 months; or
the country in which the animal was born
(KOR)]
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 4 months; or
the country in which the animal was born and
raised (MOR) (EGY)(MAL)]G/RO/45/Ad d.8/Rev.2
Page 93HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 4 months]; orthe country in which the animal was born and
raised; (EC) (EGY) (KOR) (MAL) (MOR)
(VEN) (PHI)
0104.10 - Sheep As specified for heading
0104.20 - Goats
01.05 Live poultry, that is to
say, fowls of the species
Gallus domesticus ,
ducks, geese, turkeys
and guinea fowls.[ The country of origin of the goods of this
heading shall be the country in which the
animal was born (CH) (CAN) (MEX) (US)
(ARG) (NZ) (FIJ)(AUS)(THA)(IND)(BRA)
(HON)]Submitted to CRO for decision
(Doc. 42.146, Issue 1 and Doc.
42.146/Cor).
[ The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 2 months; or
the country in which the animal was born and
raised (EGY) (MAL)]
[ The country of origin of the goods of this
heading shall be the country in which the
animal was born and raised; or
the country in which the animal was fattened
for at least 2 months (EC) (JPN) (KOR)
(MOR)]G/RO/45/Ad d.8/Rev.2
Page 94
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[ The country of origin of the goods of this
heading of a weight exceeding 185g shall be
the country in which the animal was fattenedfor at least 2 months to come from a weight of
less than 185 g to a weight of 185 g or more;
or the country of origin of the other poultry of
this heading shall be the country in which the
animal was born andraised(JPN)(EC)(KOR)(MOR)(VEN) (PHI)]
- Weighing not morethan 185g :As specified for heading
0105.11 -- Fowls of the species
Gallus domesticus
0105.12 -- Turkeys
0105.19 -- Other
- Other :
0105.92 -- Fowls of the species
Gallus domesticus ,
weighing not more than2,000 g
0105.93 -- Fowls of the species
Gallus domesticus ,
weighing more than
2,000 g
0105.99 -- Other
01.06 Other live animals. [ The country of origin of the goods of this
heading shall be the country in which the
animal was born (CH) (MAL) (CAN) (MEX)
(US) (ARG) (NZ) (FIJ)(AUS)(THA)(IND)(BRA)(HON)]Submitted to CRO for decision
(Doc. 42.146, Issue 1 and Doc.
42.146/Cor).G/RO/45/Ad d.8/Rev.2
Page 95HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
Ex01.06(a) Camel [ The country of origin of this heading shall be
the country in which the animal was fattened
for at least 6 months; or the country in whichthe animal was born and raised)]
Ex01.06(b) Other [ The country of origin of the goods of this
heading shall be the country in which the
animal was born and raised (EC) (EGY)
(KOR) (MAL) (MOR)(JPN)(VEN)(PHI)
(CUB)]G/RO/45/Ad d.8/Rev.2
Page 96
CHAPTER 2
[Product Specific] [Chapter] Residual Rule
[Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:[total value of the components, taking account of the related transformation operations  (CH)]
[weight or volume criterion, as applicable  (NZ)]
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
02.01 Meat of bovine animals,
fresh or chilled.[The country of origin of the goods of this
heading shall be the country in which the
animal was born (SEN)Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN) (US) (MEX) (MAL) (AUS) (CH)
(ARG) (IND)(GUA)(NZ)]
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened from a weight of 330 kg
or less to a weight of 450 kg or more; or
the country in which the animal was born
(PHI)]
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for four or more months
before slaughtering; or the country in whichthe animal was born (KOR) (EC) (JPN)
(MOR)(VEN)(EGY)(BRA)]G/RO/45/Ad d.8/Rev.2
Page 97HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 3
months (EC) (JPN) (MOR)]
0201.10 - Carcasses and half-
carcassesAs specified for heading
0201.20 - Other cuts with bone in
0201.30 - Boneless
02.02 Meat of bovine animals,
frozen.[The country of origin of the goods of this
heading shall be the country in which the
animal was born (SEN)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (ARG) (CAN) (JPN) (US) (MEX) (AUS)
(MAL)(IND)(GUA)(NZ)]
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened from a weight of 330 kg
or less to a weight of 450 kg or more; or
the country in which the animal was born
(PHI)]
[The country of origin of the goods of thisheading shall be the country in which the
animal was fattened for four or more months
before slaughtering; or the country in which
the animal was born (KOR) (EC) (JPN)
(MOR)(VEN)(EGY)(BRA)]G/RO/45/Ad d.8/Rev.2
Page 98
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 3
months before slaughtering (EC) (JPN)
(MOR)]
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least 3 months;
or the country in which the animal was born
and raised (EGY)]
0202.10 - Carcasses and half-
carcassesAs specified for heading
0202.20 - Other cuts with bone in
0202.30 - Boneless As specified for heading
02.03 Meat of swine, fresh, chilled
or frozen.[The country of origin of the goods of this
heading shall be the country in which the
animal was born (SEN) (THA)Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN)(US)(MEX)(EGY)(MAL)(AUS)
(CH)(ARG)(IND)(NZ)(GUA)]]
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened from a weight of 15. kg or
less to a weight of 80 kg or more; or the
country in which the animal was born (PHI)]
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for two month before
slaughtering; or the country in which the
animal was born (KOR)(EC)(JPN)(MOR)
(EGY)(VEN)(GUA)]G/RO/45/Ad d.8/Rev.2
Page 99HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 2
months (EC) (JPN) (MOR)]
- Fresh or chilled : As specified for heading
0203.11 -- Carcasses and half-
carcasses
0203.12 -- Hams, shoulders and cuts
thereof, with bone in
0203.19 -- Other
- Frozen :
0203.21 -- Carcasses and half-
carcasses
0203.22 -- Hams, shoulders and cuts
thereof, with bone in
0203.29 -- Other
02.04 Meat of sheep or goats,
fresh, chilled or frozen.[The country of origin of the goods of this
heading shall be the country in which theanimal was born (SEN) (PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 2 and Doc.42.146/Cor)
[CC (CAN) (US) (MEX) (MAL) (AUS) (CH)(ARG)(GUA)(IND)]
[ The country of origin of the goods of this
heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 2
months (EC)]G/RO/45/Ad d.8/Rev.2
Page 100
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least two months;or the country in which the animal was born
and raised (MOR) (EGY)(EC)(JPN)(BRA)
(KOR)]
0204.10 - Carcasses and half-
carcasses of lamb, fresh or
chilledAs specified for heading
- Other meat of sheep, fresh
or chilled :
0204.21 -- Carcasses and half-
carcasses
0204.22 -- Other cuts with bone in
0204.23 -- Boneless
0204.30 - Carcasses and half-
carcasses of lamb, frozen
- Other meat of sheep, frozen:
0204.41 -- Carcasses and half-
carcasses
0204.42 -- Other cuts with bone in
0204.43 -- Boneless
0204.50 - Meat of goats
02.05 Meat of horses, asses, mules
or hinnies, fresh, chilled or
frozen.[The country of origin of the goods of this
heading shall be the country in which the
animal was born (SEN) (ARG) (PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 2)
[CC (CAN) (US) (MEX) (MAL) (AUS)(CH)
(JPN)(GUA)(IND)]G/RO/45/Ad d.8/Rev.2
Page 101HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 3
months (EC)]
[The country of origin of the goods of this
heading shall be the country in which the
animal was fattened for at least three months;
or the country in which the animal was born
and raised (KOR) (MOR)(EC)(VEN)(EGY)(JPN)(BRA)]
02.06 Edible offal of bovine
animals, swine, sheep,
goats, horses, asses, mules
or hinnies, fresh, chilled orfrozen.As specified for split subheadings
ex0206(a) Edible offal of bovine
animals[The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN) (JPN) (US) (MEX) (MAL) (AUS)
(CH) (ARG)]
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened from a weight of 330 kg
or less to a weight of 450 kg or more; or
the country in which the animal was born(PHI)]G/RO/45/Ad d.8/Rev.2
Page 102
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was born and raised; or the country inwhich the animal was fattened for at least 3
months (EC) (EGY)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 6 months; or
the country in which the animal was born and
raised (KOR) (MOR)]
ex0206 (b) Edible offal of swine [The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN) (ARG)]Submitted to CRO for decision
(Doc.42.146, Issue 2).
[CC (CAN) (JPN) (US) (MEX) (MAL) (AUS)
(CH)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened from a weight of 15 kg or
less to a weight of 80 kg or more; or thecountry in which the animal was born (PHI)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 3 months; or
the country in which the animal was born andraised (MOR)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 2months (EC)]G/RO/45/Ad d.8/Rev.2
Page 103HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened for at least 1 month;or the country in which the animal was born
(KOR)]
ex0206 (c) Edible offal of sheep and
goats[The country of origin of the goods of thissplit  heading shall be the country in which the
animal was born (SEN)(ARG)(PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN) (JPN) (US) (MEX) (MAL)
(AUS)(CH)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 2months (EC)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 3 months; or
the country in which the live animal was bornand raised (MOR)]
ex0206 (d) Edible offal of horses, asses,
mules or hinnies[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born (SEN)(ARG)(PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN) (JPN) (US) (MEX) (MAL)
(AUS)(CH)]
[The country of origin of the goods of this
split heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 3
months (EC)]G/RO/45/Ad d.8/Rev.2
Page 104
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened for at least 3 months;or the country in which the live animal was
born and raised (MOR)]
0206.10 - Of bovine animals, fresh or
chilledAs specified at split heading level
- Of bovine animals, frozen :
0206.21 -- Tongues
0206.22 -- Livers
0206.29 -- Other
0206.30 - Of swine, fresh or chilled
- Of swine, frozen :
0206.41 -- Livers
0206.49 -- Other
0206.80 - Other, fresh or chilled
0206.90 - Other, frozen
02.07 Meat and edible offal, of
the poultry of heading No.01.05, fresh, chilled or
frozen.As specified for split headings
ex02.07(a) Meat and edible offal of
turkeys[The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN) (ARG) (PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN) (JPN) (US) (MEX) (MAL) (AUS)
(CH)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 1month (EC)]G/RO/45/Ad d.8/Rev.2
Page 105HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened for at least 1 month;or the country in which the animal was born
and raised (KOR) (MOR) (EGY)]
ex02.07(b) Other [The country of origin of the goods of thissplit heading shall be the country in which the
animal was born (SEN)(ARG)(PHI) (KOR)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN) (JPN) (US) (MEX) (MAL)
(AUS)(CH) (TH)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 1month (EC)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 1 month ;
or the country in which the animal was bornand raised (MOR) (EGY)]
- Of fowls of the speciesGallus
  domesticus  :As specified at split heading
0207.11 -- Not cut in pieces, fresh or
chilled
0207.12 -- Not cut in pieces, frozen
0207.13 -- Cuts and offal, fresh or
chilled
0207.14 -- Cuts and offal, frozen
- Of turkeys :G/RO/45/Ad d.8/Rev.2
Page 106
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
0207.24 -- Not cut in pieces, fresh or
chilledAs specified at split heading
0207.25 -- Not cut in pieces, frozen
0207.26 -- Cuts and offal, fresh or
chilled
0207.27 -- Cuts and offal, frozen
- Of ducks, geese or guineafowls :
0207.32 -- Not cut in pieces, fresh or
chilled
0207.33 -- Not cut in pieces, frozen
0207.34 -- Fatty livers, fresh or
chilled
0207.35 -- Other, fresh or chilled
0207.36 -- Other, frozen
02.08 Other meat and edible
meat offal, fresh, chilled or
frozen. CC Basket 1 (Approved by CRO).
02.09 Pig fat, free of lean meat,
and poultry fat, not
rendered or otherwise
extracted, fresh, chilled,
frozen, salted, in brine,
dried or smoked.As specified for split heading
ex 02.09 (a) Pig fat free of lean meat, not
rendered or otherwise
extracted: fresh, chilled,
frozen, salted or in brine[The country of origin of the goods of this
split heading shall be the country in which theanimal was born (SEN)(ARG)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN) (JPN) (US) (MEX) (AUS)]G/RO/45/Ad d.8/Rev.2
Page 107HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened to come from a weight of15 kg or less to a weight of 80 kg or more; or
the country in which the animal was born
(PHI)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 1 month;
or the country in which the animal was born(KOR)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born and raised; or the country in
which the animal was fattened for at least 2months (EC)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 2 months;
or the country in which the animal was born
and raised (MOR)]
ex 02.09 (b) Pig fat free of lean meat, not
rendered or otherwise
extracted: dried or smoked[The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN) (ARG)]Submitted to CRO for decision
(Doc. 42.146, Issues 2, 4, 6 ).
[CC (US)(JPN)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened to come from a weight of
15 kg or less to a weight of 80 kg or more; orthe country in which the animal was born
(PHI)]G/RO/45/Ad d.8/Rev.2
Page 108
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened for at least 1 month;or the country in which the animal was born
(KOR) (MOR) ]
[ CTH (MAL)(MEX)]
[ CTHS (EC)(CAN)(CH)]
ex 02.09 (c) Poultry fat, not rendered or
otherwise extracted, fresh,
chilled, frozen, salted or in
brine[The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN) (ARG) (PHI) (KOR)]Endorsed by CRO
[CC (CAN)(US)(JPN)(AUS)]
[The country of origin of the goods of this
split heading shall be the country in which the
animal was born and raised;
or the country in which the animal was
fattened for at least 1 month (EC)]
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened for at least 1 month;
or the country in which the animal was born
and raised (MOR) ]
[ CTH (CH)(MAL) (EGY) (MEX)]
ex 02.09 (d) Poultry fat, not rendered or
otherwise extracted, dried or
smoked[The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN) (ARG) (PHI) (KOR)]Submitted to CRO for decision
(Doc. 42.146, Issues 2, 4, 6).
[CC (CAN)(US)(JPN) (AUS)]
[ CTH (CH) (MAL) (EGY) (MEX)]
[CTHS (EC)(CAN)(CH)]G/RO/45/Ad d.8/Rev.2
Page 109HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
02.10 Meat and edible meat offal,
salted, in brine, dried or
smoked; edible flours andmeals of meat or meat offal.As specified for split headings
ex02.10 (a) Meat and edible meat offal of
swine, dried or smoked[The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN) (ARG)]Submitted to CRO for decision
(Doc. 42.146, Issues 2, 4, 6).
[CC (US)(JPN) (AUS)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened from a weight of 15 kg or
less to a weight of 80 kg or more; or
the country in which the animal was born
(PHI)]
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened for at least 1 month ;
or the country in which the animal was born
and raised (KOR) (MOR)]
[CTHS (EC) (CH) (MAL) (MEX)]
ex02.10 (b) Meat and edible meat offal of
swine, salted or in brine[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born (SEN) (ARG)]Submitted to CRO for decision
(Doc. 42.146, Issues 2, 4).
[CC (US)(JPN) (AUS)]
[The country of origin of the goods of thissplit heading shall be the country in which theanimal was fattened from a weight of 15 kg or
less to a weight of 80 kg or more;
 or the country in which the animal was born
(PHI)]G/RO/45/Ad d.8/Rev.2
Page 110
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened for at least 1 month; orthe country in which the animal was born and
raised (KOR) (MOR)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 2 months; or
the country in which the animal was born and
raised (EC) ]
[CTH (CH) (MAL) (MEX)]
[CTH provided the change is not only theresult of salting (CAN)]
ex02.10 (c) Meat and edible meat offal of
bovine animals, dried or
smoked[The country of origin of the goods of thissplit heading shall be the country in which theanimal was born (SEN) (ARG) (KOR)]Submitted to CRO for decision
(Doc. 42.146, Issues 2, 4, 6).
[CC (US)(JPN) (AUS)]
[The country of origin of the goods of thissplit heading shall be the country in which theanimal was fattened from a weight of 330 kg
or less to a weight of 450 kg or more; or
the country in which the animal was born
(PHI)
[CTH (CAN)]
[CTHS (EC) (MEX) (CH)(MAL)(MOR)(EGY]
ex02.10 (d) Meat and edible meat offal of
bovine animals, salted or in
brine[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born (SEN) (ARG) (KOR)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (US)(JPN)(AUS)]G/RO/45/Ad d.8/Rev.2
Page 111HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened from a weight of 330 kgor less to a weight of 450 kg or more; or
the country in which the animal was born
(PHI)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 3 months; or
the country in which the animal was born andraised (EC) ]
[CTH (CH) (MAL) (EGY)(MEX)]
[CTH provided the change is not only the
result of salting (CAN)]
ex02.10 (e) Other meat and edible meat
offal, dried or smoked[The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN) (ARG) (KOR) (PHI)]Submitted to CRO for decision
(Doc. 42.146, Issues 2, 4, 6).
[CC (US)(JPN)(CAN) (AUS)]
[CTHS (EC) (MEX) (CH) (MAL) (MOR)(EGY)]
ex02.10 (f) Meat and edible meat offal of
sheep and goats, salted or in
brine[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born (SEN) (ARG) (KOR) (PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[The country of origin of the goods of this
split heading shall be the country in which the
animal was born and raised (MOR)]
[CC (US)(JPN)(MEX) (CAN) (AUS) (CH)
(MAL)]G/RO/45/Ad d.8/Rev.2
Page 112
HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animal was fattened for at least 2 months; orthe country in which the animal was born and
raised (EC) ]
ex02.10 (g) Meat and edible meat offal of
horses and mules, salted or in
brine[The country of origin of the goods of thissplit heading shall be the country in which the
animal was born (SEN) (ARG) (KOR) (PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[The country of origin of the goods of this
split heading shall be the country in which the
animal was born and raised (MOR)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animal was fattened for at least 3 months; orthe country in which the animal was born and
raised (EC) ]
[CC (US)(JPN)(MEX) (CAN) (AUS) (CH)(MAL)]
ex02.10 (h) Other edible meat and meat
offal, salted or in brine[The country of origin of the goods of this
split heading shall be the country in which the
animal was born (SEN) (ARG) (KOR) (PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[The country of origin of the goods of this
split heading shall be the country in which the
animal was born and raised (MOR)]
[The country of origin of the goods of thissplit heading shall be the country in which theanimal was fattened for at least 1 month; or
the country in which the animal was born and
raised (EC) ]
[CC (US)(JPN)(MEX) (CAN) (AUS) (CH)(MAL)]G/RO/45/Ad d.8/Rev.2
Page 113HS Code
NumberDescription of goods Primary Rule Notes Comments
AB C D E
ex02.10(i) Edible flours of meat or meat
offalCTHS except from split heading ex02.10(j) Basket 1 (Endorsed by CRO).
ex02.10(j) Other including meals of
meat or meat offalCTHS except from split heading ex02.10(i) Endorsed by CRO
- Meat of swine : As specified at the split heading level
0210.11 -- Hams, shoulders and cuts
thereof, with bone in
0210.12 -- Bellies (streaky) and cuts
thereof
0210.19 -- Other
0210.20 - Meat of bovine animals
0210.90 - Other, including edible
flours and meals of meat or
meat offalG/RO/45/Ad d.8/Rev.2
Page 114
CHAPTER 3
[Product Specific] [Chapter] Residual Rule
[Where the origin cannot be conferred on the goods by applying th e primary rules for this Chapter, the country of origin shall be determined by the
place of capture or, if this criteria is not met, by the weight (NZ)]
[Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[total value of the components, taking account of the related transformation operations  (CH)]
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
Chapter 3 Fish and crustaceans,
molluscs and other aquatic
invertebrates
03.01 Live fish. The country of origin of the goods of this
heading shall be the country in which they
have been captured; or if farmed, the country
in which the fish has been raised from egg or
fry (including fingerling)Submitted to CRO for decision
(Doc. 42.146, Issue 8 and Doc.
42.146/Cor).
0301.10 - Ornamental fish As specified at heading level
- Other live fish :G/RO/45/Ad d.8/Rev.2
Page 115HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
0301.91 -- Trout  (Salmo trutta,
Oncorhynchus
   mykiss, Oncorhynchusclarki,
   Oncorhynchus aguabonita,
Oncorhynchus
   gilae, Oncorhynchus
apache and   Oncorhynchus
chrysogaster)As specified at the split heading level
0301.92 -- Eels (Anguilla spp.)
0301.93 -- Carp
0301.99 -- Other
03.02 Fish, fresh or chilled,
excluding fish fillets andother fish meat of heading
No. 03.04The country of origin of the goods of this
heading shall be the country in which theyhave been captured; or if farmed, the country
in which the fish has been raised from egg or
fry (including fingerling)Submitted to CRO for decision
(Doc. 42.146, Issue 10).
- Salmonidae, excludinglivers and roes :As specified for heading
0302.11 -- Trout (Salmo trutta,
Oncorhynchus
   mykiss, Oncorhynchus
clarki,
   Oncorhynchus aguabonita,
Oncorhynchus   gilae, Oncorhynchus
apache and
   Oncorhynchus
chrysogaste r)G/RO/45/Ad d.8/Rev.2
Page 116
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
0302.12 -- Pacific salmon
(Oncorhynchus nerka,
Oncorhynchus gorbuscha,Oncorhynchus keta,
Oncorhynchus tschawytscha,
Oncorhynchus kisutch,
Oncorhynchus masou  and
Oncorhynchus rhodurus),Atlantic salmon (Salmo
salar)  and Danube salmon
(Hucho hucho)As specified for heading
0302.19 -- Other
- Flat fish (Pleuronectidae,
Bothidae,
  Cynoglossidae, Soleidae,Scophthalmidae
  and Citharidae),  excluding
livers and
  roes :
0302.21 -- Halibut (Reinhardtius
hippoglossoides,
   Hippoglossushippoglossus, Hippoglossus
   stenolepis)
0302.22 -- Plaice  (Pleuronectes
platessa)
0302.23 -- Sole (Solea spp.)
0302.29 -- OtherG/RO/45/Ad d.8/Rev.2
Page 117HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
- Tunas (of the genus
Thunnus)  skipjack or
  stripe-bellied bonito(Euthynnus
  (Katsuwonus) pelamis ),
excluding livers
  and roes :As specified for heading
0302.31 -- Albacore or longfinned
tunas (Thunnus
   alalunga)
0302.32 -- Yellowfin tunas ( Thunnus
albacares)
0302.33 -- Skipjack or stripe-bellied
bonito
0302.39 -- Other
0302.40 - Herrings  (Cluppea
harengus, Clupea
  pallasii),  excluding livers
and roes
0302.50 - Cod (Gadus morhua,
Gadus ogac, Gadus
  macrocephalus),  excluding
livers and roes
- Other fish, excluding liversand roes :
0302.61 -- Sardines (Sardina
pilchardus, Sardinops   spp.),  sardinella (Sardinella
spp.),
   brisling or sprats (Sprattus
sprattus)G/RO/45/Ad d.8/Rev.2
Page 118
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
0302.62 -- Haddock (Melanogrammus
aeglefinus)As specified for heading
0302.63 -- Coalfish (Pollachius
virens)
0302.64 -- Mackerel (Scomber
scombrus, Scomber
   australasicus, Scomber
japonicus)
0302.65 -- Dogfish and other sharks
0302.66 -- Eels (Anguilla spp.)
0302.69 -- Other
0302.70 - Livers and roes
03.03 Fish, frozen, excluding fish
fillets and other fish meat
of heading No. 03.04.The country of origin of the goods of this
heading shall be the country in which they
have been captured; or if farmed, the countryin which the fish has been raised from egg or
fry (including fingerling)Submitted to CRO for decision
(Doc. 42.146, Issue 10 and Doc.
42.146/Cor).
0303.10 - Pacific salmon
(Oncorhynchus nerka,Oncorhynchus gorbuscha,
Oncorhynchus keta,
Oncorhynchus tschawytscha,
Oncorhynchus kisutch,
Oncorhynchus masou andOncorhynchus rhodurus),
excluding livers and roesAs specified for heading
- Other salmonidae,
excluding livers and roes :G/RO/45/Ad d.8/Rev.2
Page 119HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
0303.21 -- Trout (Salmo trutta,
Oncorhynchus mykiss,
Oncorhynchus clarki,Oncorhynchus aguabonita,
Oncorhynchus gilae,
Oncorhynchus apache and
Oncorhynchus chrysogaster)As specified for heading
0303.22 -- Atlantic salmon
(Salmo salar)  and Danube
salmon (Hucho hucho)
0303.29 -- Other
- Flat fish
(Pleuronectidae, Bothidae,
Cynoglossidae,
Soleidae,Scophthalmidae andCitharidae),  excluding livers
and roes :
0303.31 -- Halibut
(Reinhardtius
hippoglossoides,
Hippoglossus hippoglossus,
Hippoglossus stenolepis)
0303.32 -- Plaice (Pleuronectes
platessa)
0303.33 -- Sole (Solea spp.)
0303.39 -- Other
- Tunas (of the genus
Thunnus ), skipjack or stripe-
bellied bonito (Euthynnus
(Katsuwonus) pelamis ),
excluding livers and roes :G/RO/45/Ad d.8/Rev.2
Page 120
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
0303.41 -- Albacore or
longfinned tunas (Thunnus
alalunga)As specified for heading
0303.42 -- Yellowfin tunas
(Thunnus albacares)
0303.43 -- Skipjack or strip-
bellied bonito
0303.49 -- Other
0303.50 -- Herrings (Clupea
harengus, Clupea pallasii),excluding livers and roes
0303.60 -- Cod (Gadus morhua,
Gadus ogac, Gadus
macrocephalus),  excluding
livers and roes
- Other fish, excluding
livers and roes :
0303.71 -- Sardines (Sardina
pilchardus, Sardinops  spp.),
sardinella (Sardinella spp.),
brisling or sprats (Sprattus
sprattus)
0303.72 -- Haddock
(Melanogrammus aeglefinus)
0303.73 -- Coalfish (Pollachius
virens)
0303.74 -- Mackerel ( Scomber
scombrus, Scomber
australasicus, Scomber
japonicus)
0303.75 --Dogfish and other sharksG/RO/45/Ad d.8/Rev.2
Page 121HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
0303.76 --Eels (Anguilla spp.) As specified for headingG
0303.77 --Sea bass (Dicentrarchus
labrax, Dicentrarchus
punctatus)
0303.78 --Hake (Merluccius spp.,
Urophycis spp .)
0303.79 --Other
0303.80 -Livers and roes
03.04 Fish fillets and other fish
meat (whether or notminced), fresh, chilled or
frozen.As specified for split heading
ex 03.04(a) Fish surimi CTHS Submitted to CRO for decision
(Doc. 42.146, Issue 11).
ex 03.04 (b) Fish fillets, fresh, chilled or
frozen[The country of origin of the goods of thissplit heading shall be the country in which the
live fish have been captured (CH) (COL)
(ICE)]Submitted to CRO for decision
(Doc. 42.146, Issue 12).
[The country of origin of the goods of this
split heading shall be the country in which the
live fish have been captured; or  the country in
which the live fish has been fattened for at
least 2 months (PHI)]G/RO/45/Ad d.8/Rev.2
Page 122
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
fish was hatched from eggs ; or  the country inwhich they have been captured (AUS)]
[The country of origin of the goods of thissplit heading shall be the country in which the
fish was raised from fry; or
the country in which the relevant requirements
of the definitions of goods that are considered
to be wholly obtained are met
*    (EC)]
[The country of origin of the goods of this
split heading shall be the country in which the
live fish have been captured; or
the country in which the fish are bred from fry
to fish of marketable size for consumption(MOR)]
[CTH (US) (CAN) (JPN) (MAL)(MEX)(NOR)(KOR)]
ex 03.04 (c) Other [The country of origin of the goods of thissplit heading shall be the country in which the
live fish has been captured (KOR)(CH) (COL)
(ICE)]Submitted to CRO for decision
(Doc. 42.146, Issue 13).
[The country of origin of the goods of thissplit heading shall be the country in which thefish was raised from fry ; or
the country in which the relevant requirements
of the definitions of goods that are considered
to be wholly obtained are met
*   (EC)]
                                                     
* The second part of the origin criteria to be finalised after finishing the work on the definitions of goods that are to be con sidered as being
wholly obtained in one country(EC)G/RO/45/Ad d.8/Rev.2
Page 123HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
[The country of origin of the  goods of this
split heading shall be the country in which the
fish was hatched from eggs ; orthe country in which they have been captured
(AUS)]
[The country of origin of the goods of thissplit heading shall be the country in which the
live fish have been captured; or
the country in which the live fish has been
fattened for at least 2 months (PHI)]
[The country of origin of the goods of this
split heading shall be the country in which the
live fish have been captured; or
the country in which the fish are bred from fry
to fish of marketable size for consumption(MOR)]
[CTH (US)(CAN)(JPN)(MAL)(MEX)(NOR)]
0304.10 - Fresh or chilled As specified for split heading
0304.20 - Frozen fillets
0304.90 - Other
03.05 Fish, dried, salted or in
brine; smoked fish, whether
or not cooked before or
during the smoking process;flours, meals and pellets of
fish, fit for human
consumption.As specified for split headings
                                                                                                                                                                                                                                               
* The second part of the origin criteria to be finalised after finishing the work on the definitions of goods that are to be con sidered as being wholly obtained
in one country(EC)G/RO/45/Ad d.8/Rev.2
Page 124
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
ex 03.05 (b) Fish including fish fillets,
livers and roes: dried, salted
or in brine[The country of origin of the goods of this
split heading shall be the country in which the
live fish has been captured (KOR) (US)(MEX)]Submitted to CRO for decision
(Doc. 42.146, Issues 4, 15).
[The country of origin of the goods of this
split heading shall be the country in which the
fish was hatched from eggs ; or
the country in which they have been captured
(AUS)]
[CTH, provided the change to this split
heading is not solely the result of drying or
salting or putting in brine (MOR)]Deleted by CRO (G/RO/M/14)
[The country of origin of the goods of thissplit heading shall be the country in which the
live fish has been captured; orthe country in which the fish has been fattened
for at least two months (PHI)]
[ CTH (EC) (CH) (NOR) (SG) (MAL)(CAN)]
[CTH except from heading 03.04 (JPN)]
ex 03.05 (c) Fish including fish fillets,
livers and roes: smoked[The country of origin of the goods of this
split heading shall be the country in which thelive fish has been captured (KOR) (US)
(MEX)]Submitted to CRO for decision
(Doc. 42.146, Issue 6).
[The country of origin of the goods of this
split heading shall be the country in which the
fish was hatched from eggs ; or
the country in which they have been captured
(AUS)]G/RO/45/Ad d.8/Rev.2
Page 125HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
live fish has been captured; orthe country in which the fish has been fattened
for at least two months (PHI)]
[CTH except from heading 03.04 (JPN)]
[CTHS (CH) (EC) (COL) (JPN) (MAL) (SG)
(MOR) (NOR) (CAN) (EGY) ]
ex 03.05 (d) Flours CTHS except from split heading ex03.05(e) Basket 1 (Endorsed by CRO).
ex 03.05 (e) Meals and pellets CTHS except from split heading ex 03.05 (d) Endorsed by CRO
0305.10 - Flours, meals and
pellets of fish, fit for human
consumptionAs specified for split headings
0305.20 -Livers and roes, dried,
smoked, salted or in brine
0305.30 -Fish fillets, dried, salted or in
brine, but not smoked
-Smoked fish, includingfillets :
0305.41 -- Pacific salmon
(Oncorhynchus nerka,
Oncorhynchus gorbuscha,Oncorhynchus keta,
Oncorhynchus tschawytscha,
Oncorhynchus kisutch,
Oncorhynchus masou and
Oncorhynchus rhodurus),Atlantic salmon (Salmo
salar ) and Danube salmon
(Hucho hucho)As specified for split headingsG/RO/45/Ad d.8/Rev.2
Page 126
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
0305.42 --Herrings ( Clupea harengus,
Clupea pallasii)
0305.49 --Other
-Dried fish, whether or not
salted but not smoked :
0305.51 --Cod ( Gadus morhua,
Gadus ogac, Gadus
macrocephalus)
0305.59 - Other
-Fish, salted but not dried orsmoked and fish in brine :
0305.61 -- Herrings (Clupea
harengus, Clupea pallasii)
0305.62 -- Cod (Gadus morhua,
Gadus ogac, Gadusmacrocephalus)
0305.63 -- Anchovies
(Engraulis spp.)
0305.69 -- Other
03.06 Crustaceans, whether in
shell or not, live, fresh,
chilled, frozen, dried, saltedor in brine; crustaceans, in
shell, cooked by steaming
or by boiling in water,
whether or not chilled,
frozen, dried, salted or inbrine; flours, meals and
pellets of crustaceans, fit
for human consumption.As specified for split headingG/RO/45/Ad d.8/Rev.2
Page 127HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
ex03.06(a) Crustaceans whether in shell
or not, live, fresh, chilled,
frozen, salted or in brine; in
shell, cooked by steaming or
by boiling in water, whether
or not chilled, frozen, salted
or in brine[The country of origin of the goods of this
split heading shall be the country in which the
live crustaceans have been captured orgathered (CAN) (CH) (KOR) (US) (MEX)
(PHI)]Submitted to CRO for decision
(Doc. 42.146, Issue 10 and Doc.
42.146/Cor).
[The country of origin of the goods of this
split heading shall be the country in which the
live crustaceans have been captured orgathered or farmed (EC)]
[The country of origin of the goods of thissplit heading shall be the country in which the
live crustaceans were hatched; or  the country
in which they have been captured (AUS)]
[The country of origin of the goods of this
split heading shall be the country in which the
live crustaceans have been captured or
gathered; or the country in which the
crustaceans were fattened for at least 1 month
(MAL)]
[The country of origin of the goods of this
split heading shall be the country in which the
crustaceans have been captured or gathered ;
or the country in which the live crustaceans
have been raised from youth  to marketable
size. (JPN)(KOR)(MOR)(NOR)]G/RO/45/Ad d.8/Rev.2
Page 128
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
live crustaceans are bred from youth  tomarketable size; or the country in which
crustaceans are subject to a combination of  3
or more processes including de-heading,
shelling, de-veining, cooking by steaming or
boiling in water, chillin g or freezing, thawing
and grading, marinating in brine solution and
glazing; or
the country in which the CIF value of non-originating materials imported and used in the
production does not exceed 75% of the ex-
factory price of the goods.  The method of
calculating foreign content is as in heading03.01 (SG)]
ex 03.06(b) Crustaceans, dried [The country of origin of the goods of this
split heading shall be the country in which the
live crustaceans have been captured or
gathered (CAN) (KOR) (US) (MEX) (PHI)
(MOR)]Submitted to CRO for decision
(Doc. 42.146, Issue 4).
[The country of origin of the goods of this
split heading shall be the country in which the
live crustaceans were hatched; or the country in which they have been captured
(AUS)]G/RO/45/Ad d.8/Rev.2
Page 129HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
crustaceans have been captured or gathered ;or the country in which the live crustaceans
have been raised from youth  to marketable
size (JPN)]
[CTHS (CH) (EC) (COL) (MAL) (NOR)(SG)]
ex 03.06 (c) Flours CTHS except from split heading ex03.06(d) Basket 1 (Endorsed by CRO).
ex 03.06 (d) Meals and pellets CTHS except from ex 03.06 (c) Endorsed by CRO
03.07 Molluscs, whether in shell
or not, live, fresh, chilled,
frozen, dried, salted or in
brine; aquatic invertebrates
other than crustaceans and
molluscs, live, fresh, chilled,frozen, dried, salted or in
brine; flours, meals and
pellets of aquatic
invertebrates other than
crustaceans, fit for humanconsumption.As specified for split heading
ex03.07 (a) Whether in shell or not, live,
fresh, chilled, frozen,  salted
or in brine[The country of origin of the goods of this
split heading shall be the country in which the
animals have been captured or gathered(CAN) (CH) (KOR) (US) (MEX) (PHI) (EC)]Submitted to CRO for decision
(Doc. 42.146, Issue 10 and Doc
42.146/Cor).G/RO/45/Ad d.8/Rev.2
Page 130
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animals have been captured or gathered ; orthe country in which the live  animals have
been raised from youth  to marketable size
(JPN) (NOR)]
[The country of origin of the goods of thissplit heading shall be the country in which the
animals were hatched; or  the country in which
they have been captured (AUS)]
[The country of origin of the goods of this
split heading shall be the country in which the
animals have been captured or gathered;
or the country in which the animals of this
split heading have been fattened for at least 4months (MAL)]
[The country of origin shall be the country inwhich the animals have been captured or
gathered or farmed (EC)]G/RO/45/Ad d.8/Rev.2
Page 131HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
[The country of origin of the goods of this
split heading shall be the country in which the
animals have been captured or gathered ; orthe country in which the animals of this split
heading are bred from youth  to marketable
size; or the country in which animals of this
split heading are subject to a combination of
3 or more processes including de-heading,shelling, de-veining, cooking by steaming or
boiling in water, chillin g or freezing, thawing
and grading, marinating in brine solution and
glazing; or the country in which the CIF value
of non-originating materials imported andused in the production does not exceed 75% of
the ex-factory price of the goods.  The method
of calculating foreign content is as in heading
03.01 (SG)]
ex03.07 (b) Dried [The country of origin of the goods of this
split heading shall be the country in which the
live animals have been captured or gathered
(CAN) (KOR) (US) (MEX) (PHI) (MOR)
(AUS)]Submitted to CRO for decision
(Doc. 42.146, Issue 4).
[The country of origin of the goods of this
split heading shall be the country in which theanimals have been captured or gathered ; or
the country in which the live animals have
been raised from youth  to marketable size
(JPN)]
[CTHS (CH) (EC) (COL) (MAL) (NOR)
(SG)]G/RO/45/Ad d.8/Rev.2
Page 132
HS Code
NumberDescription of goods Primary  Rule Notes Comments
AB C D E
ex03.07 (c) Flours, CTHS except from split heading ex03.07(d) Basket 1 (Approved by CRO).
ex 03.07 (d) Meals and pellets CTHS except from ex 03.07 (c) Endorsed by CROG/RO/45/Ad d.8/Rev.2
Page 133CHAPTER 4
[Product Specific] [Chapter] Residual Rule
[Where the origin of a mixture of dairy product cannot be determin ed by applying the primary rules for this Chapter, the origin  shall be the country
where the mixing took place, provided that the inputs originatin g in that country represent at least 80 % by weight of the milk  used.  If not, the origin
shall be the country accounting for the largest percentage of non-originating milk by weight. (CAN)]
[Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[total value of the components, taking account of the related transformation operations  (CH)][weight or volume criterion, as applicable  (NZ)]
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 4 Dairy produce; birds' eggs;
natural honey; edible
products of animal origin,
not elsewhere specified or
included.
04.01 Milk and cream, not
concentrated nor containing
added sugar or other
sweetening matter.The country of origin of the goods of this
heading shall be the country in which the milk
is obtained in its natural or unprocessed state.
04.02 Milk and cream,
concentrated or containing
added sugar or othersweetening matter.As specified for split headingsG/RO/45/Ad d.8/Rev.2
Page 134
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex 04.02 (a) Coffee creamer [The country of origin of the goods of this
split heading shall be the country in which the
milk is obtained in its natural or unprocessedstate.(CAN) (EC) (KOR) (US (MEX)] (BRA)
(GUA)(IND) (VEN)(JPN)
[CTHS(HK)(ARG) (CH) CHI) (COL) (EGY)(NZ) (PHI)(SG)(THA)]Deleted by CRO (G/RO/M/14)
ex 04.02 (b) Recombined or reconstituted
milk[The country of origin of the goods of this
split heading shall be the country in which the
milk is obtained in its natural or unprocessedstate.(CAN) (EC) (KOR) (US)) (MEX) (BRA)
(GUA)(IND)(JPN)(VEN)]
[CTHS(NZ)(AUS)(ARG)(COL)(DOM)(EGY)(PHI)(THA)]Deleted by CRO (G/RO/M/14)
ex 04.02 (c) C ondensed milk [The country of origin of the goods of this
split heading shall be the country in which the
milk is obtained in its natural or unprocessed
state.(CAN) (EC) (KOR) (US)(MEX)](BRA)
(GUA)(IND)(JPN)(VEN)
[ CTH (COL)(JPN) (MAL)] Deleted by CRO (G/RO/M/14)
[CTHS(NZ)(AUS)](ARG)(CH)(CHI) (DOM)
(EGY)
ex 04.02 (d) Other [The country of origin of the goods of thissplit heading shall be the country in which themilk is obtained in its natural or unprocessed
state.(CAN) (EC) (KOR) (US)(MEX) (ARG)]Submitted to CRO for decision
(doc. 42.146, Issue 19)
[ CTH (AUS)(COL)(JPN) (MAL) (NZ)]
0402.10 - In powder, granules
or other solid forms, of a fat
content, by weight, not
exceeding 1.5%As specified for split headingG/RO/45/Ad d.8/Rev.2
Page 135HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
- In powder, granules
or other solid forms, of a fat
content, by weight,exceeding 1.5 % :
0402.21 -- Not containing added
sugar or other sweetening
matterAs specified for split heading
0402.29 -- Other
-O t h e r  :
0402.91 -- Not containing added
sugar or other sweetening
matter
0402.99 -- Other
04.03 Buttermilk, curdled milk
and cream, yogurt, kephir
and other fermented or
acidified milk and cream,
whether or not concentrated
or containing added sugaror other sweetening matter
or flavoured or containing
added fruit, nuts or cocoa.As specified for split head ings
ex 04.03 (a) Yogurt [The country of origin of the goods of this
split heading shall be the country in which the
milk is obtained in its natural or unprocessed
state. (EC) (KOR) (US)](IND)(GUA)Submitted to CRO for decision
(doc. 42.146, Issue 20)
[ CTH (AUS) (CAN)(CH)(COL)(JPN) (MEX)(MAL) (NZ)](ARG)(BRA)(CHI)(DOM)
(EGY)(PHI)(THA)(VEN)
ex 04.03 (b) Buttermilk CTH Submitted to CRO for decision
(doc. 42.146, Issue 21)G/RO/45/Ad d.8/Rev.2
Page 136
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex 04.03 (c) Other [The country of origin of the goods of this
split heading shall be the country in which the
milk is obtained in its natural or unprocessedstate. (EC) (KOR) (US)] (IND)(GUA)Submitted to CRO for decision
(doc. 42.146, Issue 20)
[CTH (AUS) (CAN)(CH)(COL)(JPN) (MEX)
(NZ)](BRA)(CHI)(DOM)(EGY)(PHI)
(THA)(VEN)
0403.10 - Yogurt As specified for split heading
0403.90 - Other
04.04 Whey, whether or not
concentrated or containing
added sugar or other
sweetening matter;
products consisting ofnatural milk constituents,
whether or not containing
added sugar or other
sweetening matter, not
elsewhere specified orincluded.CTH Submitted to CRO for decision
(doc. 42.146, Issue 21)
0404.10 - Whey and modified whey,
whether or not concentrated
or containing added sugar or
other sweetening matterAs specified for heading
0404.90 - Other
04.05 Butter and other fats and
oils derived from milk;
dairy spreads.CTH Basket 1 (Endorsed by CRO)
0405.10 - Butter As specified for heading
0405.20 - Dairy spreads
0405.90 - OtherG/RO/45/Ad d.8/Rev.2
Page 137HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
04.06 Cheese and curd. As specified for subheadings
0406.10 -  Fresh (unripened or
uncured) cheese, including
whey cheese, and curdCTH Basket 1 (Endorsed by CRO)
0406.20 -  Grated or powdered
cheese, of all kindsCTH Basket 1 (Endorsed by CRO)
0406.30 -  Processed cheese, not
grated or powdered[ CTH (COL) (EC) (KOR) (MAL) (US)]
(BRA)(IND)(VEN)Submitted to CRO for decision
(doc. 42.146, Issue 22)
[CTSH(AUS)(CH)(EGY)(NOR)(MEX)(CAN) (JPN) (NZ)] (ARG)(PHI)(SG)(THA)
(VEN)
0406.40 -  Blue-veined cheese CTH Basket 1 (E ndorsed by CRO)
0406.90 -  Other cheese CTH Basket 1 (E ndorsed by CRO)
04.07 Birds' eggs, in shell, fresh,
preserved or cooked.The country of origin of the goods of this
heading shall be the country in which the eggs
are obtained from the animals
04.08 Birds' eggs, not in shell, and
egg yolks, fresh, dried,
cooked by steaming or by
boiling in water, moulded,
frozen or otherwisepreserved, whether or not
containing added sugar or
other sweetening matter.As specified for subheadings
- Egg yolks:
0408.11 -- Dried [The country of origin of the g oods of this
subheading shall be the country in which theeggs are obtained from the animals (KOR)
(MEX) (COL)](ARG)(BRA)(EGY)(IND)
(PHI)(THA)Submitted to CRO for decision
(doc. 42.146, Issues 4, 25)
[ CTH (US)](CHI)G/RO/45/Ad d.8/Rev.2
Page 138
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
[CTSH (NOR)(CH) (EC) (CAN) (MAL)]
(AUS)(JPN)(NZ)(NOR)(VEN)
0408.19 -- Other The country of origin of the goods of this
subheading shall be the country in which the
eggs are obtained from the animalsSubmitted to CRO for decision
(doc. 42.146, Issues 24, 25)
- Other
0408.91 -- Dried [The country of origin of the goods of this
subheading shall be the country in which the
eggs are obtained from the animals]
[CTH]
[CTTSH]Submitted to CRO for decision
(doc. 42.146, Issues 4, 23)
0408.99 -- Other The country of origin of the goods of this
subheading shall be the country in which the
eggs are obtained from the animalsSubmitted to CRO for decision
(doc. 42.146, Issue, 23)
04.09 Natural honey. The country of origin of the good of this
heading shall be the country in which the
honey is  obtained in its natural or unprocessed
stateBasket 1 (endorsed by CRO)
04.10 Edible products of animal
origin, not elsewhere
specified or included.The country of origin of the good of this
heading shall be the country in which the
goods are obtained from the animalBasket 1 (endorsed by CRO)