WORLD TRADE
ORGANIZATIONG/RO/45/Add.5
2 March 2001
(01-1046)
Committee on Rules of Origin
INTEGRATED NEGOTIATION TEXT FOR THE
HARMONIZATION WORK PROGRAMME
CHAPTER 92 (MUSICAL INSTRUMENTS)
Note by the Secretariat
Addendum
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 also  been periodically updated (JOB(99)/5869, JOB
(99)/7617, JOB(00)/1573, JOB(00)/3230, JOB(00) /5207 and JOB(00)/7194).
2. The attached addendum to document G/RO/45 is the latest update of the negotiating text of
chapter 92 (musical instruments), and reflects the progress made by the CRO from 20 November-1
December 2000.G/RO/45/Add.5
Page 2
Issues for CRO Options Mainly supported by
No. 1
Assembly from parts (9209)
(9201-9208)A. CTH
B. CTH except from 9209 or
manufacture where the increasein value acquired as a result of
working and processing and, if
applicable, the incorporation of
parts originating in the country
of manufacture, represent at
least 45 [x] % of the ex-works
price of the product.PHI, CAN, HK, CH, JPN, US,
CHI, EGY, KOR, IND, COL,
MEX
EC, BRA
No. 2
Transformations within the
headings of Chapter 92
(9201-9208)A. CTH
B. The same as B aboveJPN, PHI, CAN, HK, CHI, US
(for 9209, CTH with Chapter
Residual Rules), EGY, KOR,
IND, COL, MEX
EC∗, BRA, CH
∗ The EC proposed deleting this issue as it deals basically with the same problem as issue
No.1.G/RO/45/Add.5
Page 3
ISSUES FOR DECISION;  CHAPTER 92
ISSUE FOR DECISION NO. 1
1. Assembly of musical instruments from parts classified in heading 92.09.
Differing views presented in the relevant Technical Committee discussions
OPTION A (PHI) (CAN) (HK) (CH) (JPN) (US) (CHI) (EGY) (KOR) (IND) (COL) (MEX)
2. In all cases, the assembly of musical instruments of Chapter 92 using parts classified in
heading 92.09 results in substantial transformation.  Origin is not conferred, however, if parts of
heading 92.09 are collected and the resulting collection is classified as a musical instrument pursuantto General Interpretative Rule 2(a) of the Harmonized System.
OPTION B (EC) (BRA)
3. Given the many possible assemblies involved, which may include the use of subassemblies
and of parts which may possess the final character of the finished goods, it cannot be concluded, as ageneral rule, that change of tariff classification from parts classified in heading 92.09 to musical
instruments classified in the other headings of Chapter 92 expresses substantial transformation.
Substantial transformation takes place in this context only when the increase in value acquired as a
result of working and processing and, if applicable, the incorporation of parts originating in the
country of manufacture, represents at least 45% of the the ex-works price of the product.
Relevant HS code numbers
4. Headings 92.01 through 92.08
ISSUE FOR DECISION NO. 2
5. Transformations which take place within the headings of Chapter 92 in connection with the
production of musical instruments.
Differing views presented in the relevant Technical Committee discussions
OPTION A (JPN) (PHI) (CAN) (HK) (CHI) (E GY) (KOR) (IND) (COL) (MEX) (for 92.09 CTH
with Chapter Residual Rules (US))
6. With the exceptions of tariff shifts resulting solely from the application of GIR 2(a), or tariff
shifts resulting from disassembly, change of tariff classification at the HS heading level is sufficient to
reflect substantial transformation for the musical instruments of Chapter 92.  This conclusion is based
on a technical review of the production possibilities for these goods which showed that, in particular,
changes from the heading for parts (92.09) to the headings for instruments (92.01 through 92.08)accurately reflect substantial transformation and should be origin conferring.  Correspondingly, this
review showed that there are no changes within HS headings from incomplete, unfinished,
unassembled or disassembled goods to complete and assembled musical instruments which should be
considered as reflecting substantial transformation.
OPTION B  (EC) (BRA) (CH)
7. For the musical instruments of Chapter 92 the criterion of change of tariff heading should be
the starting point.  However, because of the complexity of the products covered in these headings andG/RO/45/Add.5
Page 4
the large number of possible production operations, it cannot be assumed that change of heading from
heading 92.09 (parts) to headings 92.01 through 92.08 reflects substantial transformation.  A residual
(subsidiary) rule is needed not only to reflect assemblies of parts (see Option B in Issue 1 above), but
also to reflect that substantial transformation may take place for headings 92.01 through 92.08 without
change of classification at the heading level.  This rule provides that origin is conferred irrespective of
change of tariff heading by manufacture when the increase in value acquired as a result of workingand processing and, if applicable, the incorporation of parts originating in the country of manufacture,
represents at least 45% of the the ex-works price of the product. The assumption that only changes of
tariff heading reflect substantial transformation should not be accepted for these goods because
changes of classification under the Harmonize d System cannot reflect all the possibilities.
Relevant HS code numbers
8. Headings 92.01 through 92.08
References
9. Doc. 41.245 (Secretariat’s list of Basket 2 issues)
Doc. 41.493 (Secretariat’s Basket 2 working document)
Doc. 40.245, Annexes H/1 & H/2 (Report of the 4th Session)G/RO/45/Add.5
Page 5CHAPTER 92
 
 
 Chapter Legal Notes
 
 1. For the purposes of  those rules of origin which refer to a chan ge of classification (i.e. change of heading or change of sub heading), the following
changes shall not confer origin:
 
 a) changes which result from disassembly. (Basket 1)
 b) changes which result from packaging or repackaging, or ( Basket 1)
[c) changes which result solely from  application of General Rule of Interpretation 2 (a) with respect to collections of parts t hat are presented as
unassembled articles of another heading or s ubheading. (US) ]   (Referral Doc.OC0029E1)
2. [For collection of parts merely put together that do not sati sfy the requirement of GIR2(a), the origin of the goods shall be  the origin of individual
parts (IND)] (Referral Doc.OC0029E1)
[Chapter Residual Rules
[When application of the primary rules of this chapter (includi ng the product specific rules provided in the matrix) does not r esult in a determination of a
country of origin, the country of origin shall be determined as follows:
1. Goods produced by assembly of 5 or more parts (other than parts of general use, as defined in Note 2 to Section XV or similar p arts of plastic
(Chapter 39)) shall have origin in the country of assembly.
2. Goods produced by the assembly of less than 5 parts (other than parts of general use, as defined in Note 2 to Section XV of the  HS or similar parts of
plastic (Chapter 39)), and one or more of whose parts (other than parts of general use, as defined in Note 2 to Section XV of t he HS or similar parts
of plastic (Chapter 39)) satisfies the requirements for origin in  the country of assembly, shall have origin in the country of assembly.
3. For purposes of the subparagraphs 1 and 2 above, the following shall not be considered origin conferring operations:
(a) the attachment of parts of general use (defined in Note 2 to Section XV of the HS);
(b) the attachment of handles, dials, knobs, hand cranks and other consumer-operated controls;
(c) installation of batteries, accumulators or other articles not designed to become a permanent part of the good, orG/RO/45/Add.5
Page 6
(d) the attachment of accessories or parts which serve only to enhance the operation of the good. (US)]
 
 [Criteria for Residual Rules
 
 Weight or essential character (CAN)
 Weight or volume, as appropriate (US)
 Value (EC)
 Total value of parts and related processing activity (CH)
Criteria to be left discretionary to each country (IND)]
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 92 Musical instruments;  parts
and accessories of such articlesAs indicated at heading level
92.01 Pianos, including automatic
pianos; harpsichords and otherkeyboard stringed
instruments.[ CTH ]
[CTH except from 92.09 ;or
Manufacture where the increase in value acquired
as a result of working and processing and if
applicable the incorporation of parts originating in
the country of manufacture represents at least 45 %of the ex-works price of the product ]Submitted to CRO for decision (Doc.
41.841)
92.02 Other string musical
instruments (for example,
guitars, violins, harps).[ CTH ]
[CTH except from 92.09 ;or
 Manufacture where the increase in value acquired
as a result of working and processing and if
applicable the incorporation of parts originating inthe country of manufacture represents at least 45 %
of the ex-works price of the product ]Submitted to CRO for decision (Doc.
41.841)G/RO/45/Add.5
Page 7HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
92.03 Keyboard pipe organs;
harmoniums and similarkeyboard instruments with
free metal reeds.[ CTH ]
[CTH except from 92.09 ;or
Manufacture where the increase in value acquired
as a result of working and processing and if
applicable the incorporation of parts originating inthe country of manufacture represents at least 45 %
of the ex-works price of the product ]Submitted to CRO for decision (Doc.
41.841)
92.04 Accordions and similar
instruments; mouth organs.[ CTH ]
[CTH except from 92.09 ;or
Manufacture where the increase in value acquired
as a result of working and processing and ifapplicable the incorporation of parts originating inthe country of manufacture represents at least 45 %
of the ex-works price of the product ]Submitted to CRO for decision (Doc.
41.841)
92.05 Other wind musical
instruments (for example,
clarinets, trumpets, bagpipes).[ CTH ]
[CTH except from 92.09 ;or
Manufacture where the increase in value acquired
as a result of working and processing and ifapplicable the incorporation of parts originating inthe country of manufacture represents at least 45 %
of the ex-works price of the product ]Submitted to CRO for decision (Doc.
41.841)G/RO/45/Add.5
Page 8
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
92.06 Percussion musical
instruments (for example,drums, xylophones, cymbals,
castanets, maracas).[ CTH ]
[CTH except from 92.09 ;or
Manufacture where the increase in value acquired
as a result of working and processing and if
applicable the incorporation of parts originating inthe country of manufacture represents at least 45 %
of the ex-works price of the product ]Submitted to CRO for decision (Doc.
41.841)
92.07 Musical instruments, the sound
of which is produced, or mustbe amplified, electrically (for
example, organs,  guitars,
accordions).[ CTH ]
[CTH except from 92.09 ;or
Manufacture where the increase in value acquired
as a result of working and processing and ifapplicable the incorporation of parts originating inthe country of manufacture represents at least 45 %
of the ex-works price of the product ]Submitted to CRO for decision (Doc.
41.841)
92.08 Musical boxes, fairground
organs, mechanical street
organs, mechanical singing
birds, musical saws and othermusical instruments not fallingwithin any other heading ofthis Chapter; decoy calls of allkinds; whistles, call horns and
other mouth-blown sound
signalling instruments.[ CTH ]
[CTH except from 92.09 ;or Manufacture where
the increase in value acquired as a result ofworking and processing and if applicable theincorporation of parts originating in the country ofmanufacture represents at least 45 % of the ex-works price of the product ]Submitted to CRO for decision (Doc.
41.841)G/RO/45/Add.5
Page 9HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
92.09 Parts (for example,
mechanisms for musical boxes)and accessories (for example,cards, discs and rolls for
mechanical instruments) of
musical instruments;metronomes, tuning forks and
pitch pipes of all kinds.CTHBasket 1 (Endorsed by CRO)
9209.10 - Metronomes, tuning forks
and pitch pipesAs specified for heading
9209.20 - Mechanisms for musical
boxes
9209.30 - Musical instrument strings
-O t h e r  :
9209.91 -- Parts and accessories for
pianos
9209.93 -- Parts and accessories for the
musical instruments of
heading No. 92.03
9209.94 -- Parts and accessories for the
musical instruments of
heading No. 92.07As specified for heading
9209.99 -- Other
9209.92 -- Parts and accessories for the
musical instruments of
heading No. 92.02
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