RESTRICTEDWORLD TRADE
ORGANIZATIONG/RO/M/39
3 April 2002
(02-1680)
Committee on Rules of Origin
MINUTES OF THE MEETING OF 10 DECEMBER 2001
Chairman:  Mr. H. Ahn
The agenda proposed for the meeting, contained in WTO/AIR/1668, was adopted by the
Committee on Rules of Origin (CRO) as follows:
Table of contents
I. PRODUCT-SPECIFIC RU LES OF ORIGIN........................................................................2
A. C HAPTERS 1-24 ( AGRICULTURAL PRODUCTS AND FISH ) ............................................................2
B. C HAPTERS 25-27 ( MINERAL PRODUCTS ).....................................................................................4
C. C HAPTERS 28-40 ( CHEMICAL PRODUCTS )...................................................................................4
D. C HAPTERS 41-43 ( LEATHER ).......................................................................................................5
E. C HAPTERS 44-49 ( WOOD AND PAPER ) ........................................................................................5
F. C HAPTERS 50-63 ( TEXTILE PRODUCTS ) ......................................................................................5
G. C HAPTERS 64-67 ( FOOTWEAR AND HEADGEAR ).........................................................................7
H. C HAPTERS 68-70 ( CERAMICS ).....................................................................................................7
I. C HAPTER 71 ( PRECIOUS STONES AND METALS )..........................................................................7
J. C HAPTERS 72-73 ( IRON AND STEEL ) ...........................................................................................7
K. C HAPTERS 74-81 ( NON-FERROUS METALS ).................................................................................8
L. C HAPTERS 82-83 ( ARTICLES OF METAL ).....................................................................................9
M. C HAPTERS 84, 85 AND 90............................................................................................................9
N. C HAPTERS 86-89 ( TRANSPORTATION EQUIPMENT )...................................................................11
O. C HAPTER 91 ( WATCHES AND CLOCKS ) .....................................................................................11
P. C HAPTERS 92-97 ( MUSICAL INSTRUMENTS AND OTHER ARTICLES ) .........................................11
II. ENDORSEMENT OF PROPOSALS ON HARMONIZED RULES OF ORIGIN
(G/RO/W/67/REV.2, G/RO/W/ 68/REV.1 AND G/ RO/W/70).............................................12
III. IMPLICATIONS OF THE IMPLEMENTATION OF THE HARMONIZED
RULES OF ORIGIN  ON OTHER WTO AGREEMENTS ................................................17
IV. SEVENTH ANNUAL REVIEW OF THE IMPLEMENTATION AND
OPERATION OF THE AGREEMENT ON RU LES OF ORIGIN (G/RO/W/73) ...........17
V. OTHER BU SINESS............................................................................................................... .17
A. AGENDA FOR THE APRIL MEETINGS OF THE CRO .....................................................................17G/RO/M/39
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B. D ATES OF THE JUNE MEETINGS OF THE CRO ...........................................................................18
C. P LAN OF WORK TO EXPEDITE THE COMPLETION OF THE HWP .................................................18
I. PRODUCT-SPECIFIC RULES OF ORIGIN
1.1 The Chairman stated as follows:
A. CHAPTERS 1-24 ( AGRICULTURAL PRODUCTS AND FISH )
Issue Nos. 1-2:  Six Members changed their positions to join the Chairman's package proposal (option
A for both issues).  Some Members supporting option B for Issue No. 1 stated that a fattening period
of more than three months might be acceptable for Issue No. 1;  while some Members supporting
option A stated that the weight criterion was necessary and the period proposed by them was based onthe industry practice.  It was agreed that the country of origin of a pure-bred horse is the country
where the animal was born and raised.
Issue No. 4 and 6:  There was growing support for the Chairman's package recommendation (BRA,
CAN, DOM, ICE, MOR, NZ, SG, THA, US (except Issue No. 6(ii)) supported the package).Issue No. 12:  One Member stated that filleting of fish more than doubled the value of fish.  Another
Member pointed out the implications of origin determination of fish for efforts of other international
organizations for preservati on of tuna (ICCAT decision).
Issue No. 15:  Growing consensus on the Chairman's package was again confirmed (four more
Members joined the package).  It was noted that there was a definition of "heavy salted" decreed by
the FAO/WHO Food Standard Programme (Codex Alimentarius Commission).
Issue Nos. 16-22:  No consensus was reached.  The Chairman reconfirmed that his recommendations
were made as a package.Issue Nos. 23-25:  Members supporting option A (CTH) stated that processing of egg is origin-
conferring;  hence they were unable to join the consensus.Issue Nos. 29 and 71:  Based on information provided by Switzerland, a large number of Members
supported option A (obtaining powdered vegetables or fruits is origin-conferring).Issue Nos. 30-32:  No consensus was reached.
Issue No. 33:  One Member stated that this issue should not be deleted until the mixture residual rule
issue was resolved.
Issue Nos. 35-36:  No consensus was reached.  India proposed option B for Issue No. 35 and option A
for Issue No. 36, while the United States proposed the opposite as a package.Issue No. 37:  There was consensus on option A (CTH) (subject to ARG, MOR).
Issue Nos. 43-44:  Based on informal discussions the Chairman changed his recommendations from
option B to option A for Issue No. 43 and from option A to option B for Issue No. 44.  A large
number of Members supported the revised Chairman's recommendations.
Issue No. 45:  No consensus was reached.G/RO/M/39
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Issue No. 46:  Based on informal discussions, the Chairman changed his recommendation from option
A to option B.  A number of Members changed their positions accordingly.  One Member suggested
splitting up the palm oil.
Issue Nos. 49-50:
1601:  There was consensus on the Chairman's recommendation (CC, subject to Chapter Note 1(a))
(subject to AUS, MAL).
ex1602(a):  There was consensus on the Chairman's recommendation (CC, subject to Chapter Note
1(a)) (subject to AUS, EC, MAL, VEN).  It was also  agreed to modify Chapter Note 1(a) by adding
"(including sugar)" after "by addition of seasoning or preservatives".
ex1602(b):  There was consensus on the Chairman's recommendation (CC) (subject to AUS, MAL,
US).  It was also recognized that "CTHS" might be a correct rule.
1603:  There was consensus on the Chairman's recommendation (CTH) (subject to HON, KOR, US).
ex1604:  The description of ex1604(a) needed to be reconsidered.
ex1604(b) and 1605:  There was consensus on the Chairman's recommendation (CTH) (subject to
HON, VEN).
Issue Nos. 51-57:  Several Members (including AUS, CAN, CUB, HON, KOR, NZ) stated that they
were unable to join the consensus.  Issue No. 53 wa s the most difficult issue for most of them, while
Issue Nos. 52 and 54-56 were also identified as difficult issues.
Issue Nos. 58-64:  No consensus was reached.
Issue No. 75:  Two more Members supported the Chairman's recommendation.
Issue No. 77:  No consensus was reached.  Members supporting option A stated that "CTH"
recognized change from heading 2008 (pulp) as origin -conferring.  It was pointed out that most fruit
juices are made from reconstituted fruit juices.
Issue No. 78:  No consensus was reached.
Issue Nos. 79, 81-83:  Based on informal discussions, the Chairman changed his recommendations as
follows:
No. 79:  option A
No. 81:  option B
No. 82:  option B
No. 83:  "CTH"
Issue Nos. 89 and 95-97:  Canada and the EC were requested to provide more detailed technical
information on this issue.  One Member supporting option A stated that since classification of
agricultural products might be easily changed into Chapter 21 by slight modification, the "CTSH" rule
was consistent with the already agreed rules of other headings.  The Chairman changed his
recommendation to "CTH" for Issue Nos. 95, 96 and 97.
Issue No. 93:  One Member supporting option B st ated that change from ex2106.10 would easily be
made by adding spice.
Issue No. 94:  There was consensus on the Chairman's recommendation (CTH, except from 2201)
(subject to GUA, HON, KOR, NZ, SG, VEN).G/RO/M/39
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Issue Nos. 98-101:  No consensus was reached.  Memb ers supporting option B (or D) stated that their
positions were un-negotiable, while Members supporting option A stated that production of wine from
grapes was origin-conferring.
Issue No. 103:  There was consensus on option C (CTH).
Issue No. 104:  No consensus was reached.  Korea made a new proposal for soju or shochu.  Many
Members supported the proposal.Issue No. 106:  No consensus was reached.  Canada intended to submit a new proposal (heading
residual rule) to address this issue.
Issue No. 108:  No consensus was reached.
Issue No. 110:  Based on informal discussions, the Chairman made the following compromise
recommendation:  "CTH, except from headings 0401-0403".Issue Nos. 115-116:  No consensus was reached.  Linked to Issue Nos. 45 and 46.
Issue No. 117:  Based on informal discussions, the Chairman made the following compromise
recommendations:  "CTH for ex1517.90(a);  CC for ex1517.90(b)".Issue No. 121:  The following views were expressed:
1.  Mixing is origin-conferring;
2.  Origin of each ingredient of mixtures should be identified;
3.  The major portion rule in the architecture should be applied;  and
4.  The modified EC proposal might be applied.It was noted that in some countries marking of country of origin was not required for certain products,
and that labelling requirements concerned more than marking of country of origin.
Issue No. 122:  The following views were expressed on this issue:
1.  Chapter residual rule is not needed (general residual rule should apply);
2.  Chapter residual rule should be applied only to unroasted coffee (roasting is origin-conferring);
and3.  Views in Notes of Issue No. 31 might be acceptable.
B. C
HAPTERS 25-27 ( MINERAL PRODUCTS )
Issue No. 1:  Based on informal consultations , the Chairman made the following proposal:
CTH;  or
CTSH provided Chapter Note X is satisfied
Chapter Note X:  The production of cement through the deliberate and proportionally controlled
mixing of not more than [75]% of clinker by weight of the total weight of the finished good with
additives like gypsum and limestone and other additives is origin-conferring.
Issue No. 8:  No consensus was reached.
C. CHAPTERS 28-40 ( CHEMICAL PRODUCTS )
Issue Nos. 1-3:  Still waiting for a proposal from CH and US.G/RO/M/39
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Issue No. 4:  Some Members supporting option A expressed their strong interest in these products
with respect to Chapters 28, 29, 30, 32, 38 and 39.  Some Members supporting option B stated that
increasing particle size of chemicals should not be considered as substantial transformation, but that if
option A proponents make a new proposal based on specific products, accompanied with a more
detailed technical justification, they would reconsider the new proposal.
Issue No. 5:  No consensus was reached.  A Member supporting option A stated that no delegation
had given an explanation of what "dilution" means, and that any substance could be "diluted" in this
ambiguous manner, which would not be mere dilution and should acquire origin.
Issue No. 7:  Members supporting option B stated  that they do not understand what goods would be
produced as a result of the separation process.  The clarifications given by option A proponents could
not persuade the option B supporters to give up their position.
Issue No. 9:  There was consensus on the Chairman's recommendation (CTH, except by mere dilution
or by mere addition of alcohol to odoriferous substances or to a perfume base).
Issue No. 22:  The US promised to submit a compromise proposal.
Issue No. 24:  There was consensus on option A (support the Chapter Note) (subject to CH and EC).
Issue No. 30:  A compromise proposal from the EC and US is to be submitted.
Issue No. 32:  There was growing support for the Chairman's proposal (4001.21:  CTH;  4001.22:
CTSH;  4001.29:  CTSH) (IND and SRI supporting option B).
D. CHAPTERS 41-43 ( LEATHER )
Issue Nos. 6-7:  The Chairman made the following compromise proposal (a number of Members
supported the proposal):
"Compromise proposal for Issue Nos. 6 and 7, headings 4104 through 4107, based on the following
example for heading 4104:
4104 Leather of bovine or equine animals
Provisionally prepared CTH except from heading 4101Tanned, in the wet state CTHS
Other CTHS
The definitions of "retanned" and "finished leather" and perhaps "tanned leather" could be dropped."
E. C
HAPTERS 44-49 ( WOOD AND PAPER )
Issue No. 5 bis:  It was agreed to delete this issue.
F. CHAPTERS 50-63 ( TEXTILE PRODUCTS )
Issue Nos. 2, 3, 14 and 15:  There was consensus on the following Chairman's recommendations:
-  option B (CTH) for HS5105, option A (CC) for HS5203
-  option B (origin-conferring) for Issue No. 3
-  option B (CC) for Issue No. 14
-  option B (CC/WO) for Issue No. 15G/RO/M/39
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Issue Nos. 4, 5, 11 and 16:  Linked to Issue Nos. 12 and 13.
Issue No. 6:  It was agreed to delete the reference "[compacted yarn process or slub yarn process]".
Issue No. 8:  It was agreed to delete the reference heading 5401(c).
Issue Nos. 12 and 13:  No consensus was reached.
Issue No. 20:  There was consensus on option A (CTH) (subject to ARG, HON, MEX, US, VEN).
Issue No. 23:  Members supporting option B were requested to reconsider their position.
Issue No. 35:  No consensus was reached.
Issue Nos. 36, 60 and 81:  There was growing consensus towards the Chairman's package
recommendations.
Issue No. 37:  The US stated that they would furt her consult with industry in order to lower the
threshold of the compromise proposal.  There was consensus on option A (CTH) for heading 59.06
(subject to ARG, GUA, HON).
Issue No. 44:  India stated that coating or lamination of knitted or crocheted fabrics of Chapter 60 is
technically feasible and a commercial reality.  Some Members expressed flexibility on this issue.
There was consensus on option D (non-origin-conferring) for split heading ex60.02(c).
Issue No. 45:  No consensus was reached.
Issue No. 46:  Egypt supported option B (non-origin-conferring).
Issue Nos. 47-49:  No consensus was reached.
Issue No. 54:  There was consensus on the Chairman's recommendation (CC, except by cutting and/or
hemming only).
Issue No. 55:  No consensus was reached.
Issue No. 57:  There was consensus on option B (deletion of the split headings concerned) (subject to
SG).Issue Nos. 55, 59, 61-62 and 69 (flat products):  It was suggested that a horizontal "CTH" rule with
the exception of simple operations like cutting, hemming, trimming etc. would be needed for these
issues.
Issue Nos. 63-69 (made-up goods):  The Chairman (supported by a large number of Members)
recognized that the further fine-tuned option B would be acceptable to most Members.  One Member
stated that for Issue No. 66 the "CTH" rule might be appropriate.
Issue No. 74:  It was agreed to discuss this issue after resolution of all other issues.
Issue Nos. 75, 77 and 81:  No consensus was reached.G/RO/M/39
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G. CHAPTERS 64-67 ( FOOTWEAR AND HEADGEAR )
Issue No. 3:  There was consensus on option A (CTH).
Issue No. 9:  Australia and the US (supported by Korea) made the following compromise proposal:
Ex 6406(a) (uppers to which a permanent inner sole is attached which completely closes the bottom –
CTHS
Ex 6406(b) (other) – CTH
Issue No. 12:  Australia and the US made the following compromise proposal:
"CTH, except from split heading ex 6406(a)".
H. CHAPTERS 68-70 ( CERAMICS )
Issue Nos. 9, 10 and 11:  There was growing support for the revised Chairman's recommendation
(CTH or change by chemically etching, sand-blasti ng or grinding with subsequent acid polishing, of
unworked glassware (not etched, sand-blasted, ground, carved, engraved or otherwise decorated)).
EC will submit a modified proposal.
I. CHAPTER 71 ( PRECIOUS STONES AND METALS )
Issue No. 1:  There was consensus on option B (subject to SRI).
Issue No. 5:  It was agreed to delete this issue (the proposed Chapter Note is to be deleted).
J. CHAPTERS 72-73 ( IRON AND STEEL )
Issue Nos. 3 and 5: A working group tackled the issue of coating in the metal chapters to further
explore the possibility of a compromise.  To ac hieve this goal, CH, BRA, KOR, JPN, PHI and SG
proposed and supported a chapter rule fixing a threshold of substantial coatings.  The chapter rule
would be less liberal than the normal CTH rule but less stringent than excepting all changes from
uncoated to coated products.  The rule in the matrix would then read:  "CTH, provided chapter note X
is satisfied".  Despite the fact that some Members expressed their impossibility to agree to a
compromise under those issues, the discussions were fruitful and helped to narrow down the list of
headings to which the chapter note would apply.
Three types of steel are covered by the coating issues in chapter 72:
-  stainless steel;
-  non-alloy steel;
-  other alloy steel.
Subject to confirmation by some Members supporting options A or B the coating of stainless
steel products was deemed not to be either a commercial reality or a substantial transformation.  Also
on printing or lacquering, Members supporting this option could agree to drop that position in search
of a compromise.
In the two remaining steel types in chapter 72, three subtypes can be identified:
-  flat products;-  angles, shapes and sections;
-  wire/bars/rods.
While some Members support the coating only in relation to flat products, others expressed
concern about the consistency of such an approach.
Not specifically discussed was Issue No. 5 on coating of tubes and pipes.G/RO/M/39
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Further discussion will be needed to find a solution.
Issue No. 4:  There was consensus on the Chairman's recommendation (for the purposes of this
Chapter, the expressions "cold-rolled" (cold- reduced) and "cold-formed" mean cold reduction
resulting in changes to the crystalline structure of the workpiece.  The expressions do not include verylight cold-rolling and cold-forming processes (skin pass or pinch pass) which act only on the surface
of the material and do not result in change to its crystalline structure.
7217(a), 7217(b):  CTH, except from 7213 through 7215;  or change from headings 7213 through
7215, provided the material has been cold-formed in conformity with the Chapter Note.
7223(a), 7223(b):  CTH, except from 7221 through 7222;  or change from headings 7221 through
7222, provided the material has been cold-formed in conformity with the Chapter Note7229(a), 7229(b):  CTH, except from 7227 through 7228;  or change from headings 7227 through
7228, provided the material has been cold-formed in conformity with the Chapter Note.)
Issue No. 6:  There was consensus on the Chairman's recommendation
(- HS 7304.21 – CTH;
- HS 7304.29 – CTH;- HS 7304.31 – CTH, or CTSHS from HS ex7304.39(a);
- HS ex7304.39(a) hollow profiles – CTH;
- HS ex7304.39(b) other – CTH;
- HS 7304.41 – CTH, or CTSHS from HS ex7304.49(a);
- HS ex7304.49(a) hollow profiles – CTH;- HS ex7304.49(b) other – CTH;
- HS 7304.51 – CTH, or CTSHS from HS ex7304.59(a);
- HS ex7304.59(a) hollow profiles – CTH;
- HS ex7304.59(b) – CTH;  and
-  HS 7304.90 – CTH)
Issue No. 7:  There was consensus on option A (CTHS) (subject to ARG, EGY).
Issue No. 8 :  There was consensus on option B (CTH) (subject to DOM).
Issue No. 11:  There was consensus on option B (CTH) (subject to DOM).
K. CHAPTERS 74-81 ( NON-FERROUS METALS )
Issue Nos. 9, 10 (only for HS7607.11) and 14:  Base d on informal discussions, a proposal (25%
reduction of cross-sectional area) was made for further consideration.
Issue No. 13:  There was consensus on option A (CTH;  or change within this heading/
CTSH/CTSHS).
Issue Nos. 15 and 16:  There was consensus on the following Chairman's recommendation:
HS 7507.11 (tubes, not alloyed) - CTSH
HS 7507.12 (tubes, alloys) - CTSHHS 7507.20 (fittings) - CTSH
HS 7805 – tubes or fittings
HS ex7805(a) (tubes and pipes) - CTHS
HS ex7805(b) (other) - CTHS
HS 7906 – tubes and fittingsHS ex7906(a) (tubes and pipes) - CTHS
HS ex7906(b) (other) - CTHS
HS 8006 – tubes and fittingsG/RO/M/39
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HS ex8006(a) (tubes and pipes) - CTHS
HS ex8006(b) (other) - CTHS
HS ex8101(g)-ex8111(g), and ex8113(h) – tubes and pi pes – CTHS, or cold-rolling from articles of
this split heading
HS ex8101(g1)-ex8111(g1), and ex8113(h1) – tube or pipe fittings - CTHSHS ex8112.19(d), ex8112.20(g)-ex8112.40(g), and ex8112.99(d) – tubes and pipes – CTSHS, or cold-
rolling from articles of this split subheading
HS ex8112.19(d1), ex8112.20(g1)-ex8112.40(g1), and ex8112.99(d1) – tube or pipe fittings – CTSHS
Issue No. 17:  The EC and US were requested to submit a joint proposal.
Issue No. 18:  There was consensus on option A (CTHS) subject to EGY).
L. CHAPTERS 82-83 ( ARTICLES OF METAL )
Issue No. 1:  There was consensus on the followin g chapter note for chapter 82(subject to EC,EGY,
IND, MAL, MOR, PHI):
Note 1: A good or part produced from a blank:
1. The country of origin of a good or part pr oduced from a blank which by application of
the Harmonized System General Interpretative Rule 2(a) is classified in the same
heading, subheading or subdivision as the complete or finished good or part, shall be
the country in which every working edge, working surface and working part wasconfigured to final shape and dimension, provided, in its imported condition, the
blank from which it was produced:
(i)  was not capable of functioning, and
(ii)  was not advanced beyond the initial stamping process or any processing
required to remove the material from the forging platter or casting mold.
2. If the criteria in paragraph 1 are not satisfied, the country of origin is the country of
origin of the blank of this chapter.
The EC was requested to submit a draft chapter note concerning non-origin-conferring mere
assembly, for consideration at the next meeting of the CRO.
Issue No. 9: There was consensus on the followin g chapter note for chapter 83(subject to EC,EGY,
IND, MAL, MOR, PHI):
Note 1: A good or part produced from a blank:
The country of origin of a good or part produced from a blank, which by application
of the Harmonized System General Interpretative Rule 2(a) is classified in the same
heading, subheading or subdivision as the complete or finished good or part, shall be
the country in which the blank was finished, provided finishing included configuringto final shape by the removal of material (other than merely by honing or polishing or
both), or by forming processes such as be nding, hammering, pressing or stamping.
Issue No. 11 bis:  There was consensus on option A (new split is accepted) (subject to EC).
M. CHAPTERS 84, 85 AND 90
Issue No. 13:  It was agreed that reassembly of the disassembled goods is not origin-conferring.  A
Member referred to the consensus on Questions 11 and 12.  The EC was requested to submit a draft
text on Issue No. 13.G/RO/M/39
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Issue No. 14:  It was agreed to delete this issue.  However two options – "CTH" and "CTH, or
value-added rule" should remain in the matrix and be included in the registry of deleted issues.
Issue No. 20:  It was agreed to delete option C2.
Issue Nos. 21-31:  It was agreed to delete these issues.  However two options – "CTH with Chapter
Note" and "value-added rule" should remain in the matrix and be included in the registry of deleted
issues.
Issue No. 32:  It was agreed to delete this issue.  However, two options – "CTSHS" and "value-added
rule" should remain in the matrix and be included in the registry of deleted issues.
Issue No. 33:  The Member supporting option D stated that they were unable to join option B because
of their current domestic regulations.
Issue No. 44:  It was agreed to delete this issu e.  However, two options – "CTH" and "CTH, except
form 8501;  or value-added rule" should remain in the matrix and be included in the registry of
deleted issues.
Issue No. 50:  It was agreed to delete this issu e.  However, two options – "CTH" and "value-added
rule" should remain in the matrix and be included in the registry of deleted issues.
Issue No. 51:  No discussion took place.
Issue No. 54:  It was agreed to delete this issu e.  However, two options – "CTH" and "CTH, except
from 8529;  or value added rule" should remain in the matrix and be included in the registry of deleted
issues.
Issue No. 55:  It was agreed to delete options A1 and C.  Three more Members joined option E1a, as
the Chairman recommended.Issue No. 56:  It was agreed to delete option A1.
Issue No. 57:  It was agreed to delete this issue (split heading ex8537(a) is to be deleted).  However,
two options for heading 85.37 – "CTH" and "CTH, except from 85.38;  or value-added rule" should
remain in the matrix and be included in the registry of deleted issues.
Issue Nos. 59-62:
Heading 85.41: :  All Members (excep t Brazil, EC and US) agreed that mounting is origin-conferring
while programming does not take place for these products.  (The US proposed that fusion is origin;
and Brazil and the EC proposed a value-added rule to recognize substantial transformation.).
Heading 85.42:  All Members (except Brazil, EC and US) agreed that mounting is origin-conferring.
Some Members (including Egypt, India, Japan and Korea) were of the view that programming is not
origin-conferring due to the ephemeral nature of programming, while other Members (includingCanada, Mexico, the Philippines, Singapore and Switzerland) stated that without programming the
semiconductors and integrated circuits are useless;  hence programming is origin-conferring.
Issue No. 63:  It was agreed to delete this issue (subject to MAL and SG) (the split headings 85.41(f)
and 85.42(e) are to be deleted).
Issue Nos. 75-77:  No consensus was reached.G/RO/M/39
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Issue No. 80:  It was agreed to delete this issu e (subject to MAL).  Howe ver, two options – "CTH,
provided at least two goods of heading 90.01 are mounted", and "CTH, or 45% value-added" should
remain in the matrix and be included in the registry of deleted issues.
Issue No. 85:  It was agreed to delete this issue (subject to MAL).  However, two options – "CTSHS"
and "CTH;  or value-added rule" should remain in the matrix and be included in the registry of deleted
issues.
N. CHAPTERS 86-89 ( TRANSPORTATION EQUIPMENT )
Issue No. 68:  There was consensus on this issue (CTH, except from heading 73.09 or 73.10) (subject
to MOR).
Issue No. 69:  No consensus was reached.  It was agreed to delete options A and D (subject to KOR,
MOR).Issue No. 70 bis:  It was agreed to delete this item.  However two options – "CTHS/CTH, or change
from ex87.08(s) for ex87.08(t)" and "value-added rule" should remain in the matrix and be included in
the registry of deleted issues.
Issue Nos. 71-74:  No consensus was reached.
O. CHAPTER 91 ( WATCHES AND CLOCKS )
Issue No. 1:  No consensus was reached.
Issue No. 3:  There was consensus on option B (CTH, except from ex91.10(b)).
Issue No. 5:  There was consensus on option C (CTH, or change from parts).
P. CHAPTERS 92-97 ( MUSICAL INSTRUMENTS AND OTHER ARTICLES )
Chapter 92:  This issue is linked to Issue No. 1 of Chapters 84, 85 and 90.
Chapter 93
Issue No. 6:  There was consensus on option A (CTH, or change from subheading 9401.90/9403.90
(subject to ARG, NZ).
Issue No. 7:  One more Member joined the Chairman's recommendation.
Issue No. 12:  Based on informal discussions, the Chairman changed his recommendation from
"option A" to "option C (CTH)".  A large numbe r of Members joined the revised recommendation.
Issue Nos. 23-26 and 28:  There was consensus on the following rule (subject to MOR):  "CTSH,
provided at least one part is originated in the country of assembly".
Issue No. 33:  There was consensus on the following blank rule for Chapter 93 and heading 95.06
(subject to ARG, EC, EGY, IND, MAL, MOR, PHI):
Note 1: A good or part produced from a blank:G/RO/M/39
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The country of origin of a good or part produced from a blank, which by application
of the Harmonized System General Interpretative Rule 2(a) is classified in the same
heading, subheading or subdivision as the complete or finished good or part, shall be
the country in which the blank was finished, provided finishing included configuring
to final shape by the removal of material (other than merely by honing or polishing orboth), or by forming processes such as be nding, hammering, pressing or stamping.
1.2 The CRO took note of the statement.
II. ENDORSEMENT OF PROPOSALS ON HARMONIZED RULES OF ORIGIN
(G/RO/W/67/REV.2, G/RO/W/68/REV.1 AND G/RO/W/70)
2.1 The CRO endorsed the following proposals on harmonized rules of origin:
Chapters 1-24 – Issue No. 8:  to endorse option B (split heading ex 03.01(a) should be deleted).
Chapters 1-24 – Issue No. 10(ii):  to endorse option B (the primary rule of heading 07.10 should read
"the country of origin of the goods of the heading shall be the country in which the vegetables grew";
the primary rule of heading 08.11 should read "the country of origin of the goods of this heading shall
be the country in which the fruit or nuts grew";  and the primary rule of heading 08.14 was already
endorsed by the CRO (G/RO/M/37, paragraph 2.1).
Chapters 1-24 – Issue No. 21:  to endorse option A (each primary rule of split heading ex04.03(b) and
heading 04.04 should read "CTH").
Chapters 1-24 – Issue No. 28:  to endorse option B (the primary rule of split heading ex06.03(b)
should read "the country of origin of the goods of this split heading shall be the country in which theplants grew").
Chapters 1-24 – Issue No. 74:  to endorse option B (the primary rule of split subheading ex2008.11(a)
should read "CTH/CC"
1).
Chapters 1-24 – Issue No. 88:  to endorse option A (the primary rule of subheading 2104.20 should
read "CTSH").
Chapters 1-24 – Issue No. 102:  to endorse option A (the following proposed rule for heading 22.07
should be deleted:  "The country of origin of the goods of this subheading shall be the country in
which the sugar cane or beet, grapes or other materials from which alcohol is produced are obtained in
their natural or unprocessed state, or elimination of at least 80% of impurities, or modification of thealcoholic strength by concentration, distillation or any other process").
Chapters 1-24 – Issue No. 105:  to endorse option B (the primary rule of subheading 2207.20 should
read "CTH, except from heading 22.08").
Chapters 1-24 – Issue No. 109:  to endorse option A (the primary rule of heading 23.08 should read
"CTH").
Chapters 1-24 – Issue Nos. 119-120:  to endorse option A (the primary rule of heading 15.22 should
read "CTH").
                                                     
1 Terminology to be determined during the overall coherence exercise.G/RO/M/39
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Chapters 25-27 – Issue No. 9:  to endorse option A (Note 4 of chapter 27 should read as follows:
"List of simple processes which do not confer origin:
- cleaning
- decantation- desalination
- water separation
- filtering
- colouring
- marking
- any combination of these operations."
Chapters 28-40 – Issue No. 6:  to endorse Note 1 to Chapter 33 as follows:
"1.  Mixtures and blends:
For the purposes of headings 33.02, 33.04, 33.05, 33.06 and 33.07, the deliberate and proportionally
controlled mixing or blending (including dispersing ) of materials [other than the addition of diluents
only] to conform to predetermined specifications which results in the production of a good havingphysical or chemical characteristics which are releva nt to the purposes or uses of the good and are
different from the input materials is to be considered to be origin conferring. However, the mere
addition of the goods of headings 33.01 or 33.02 to the goods of other headings of this Chapter should
not be considered as producing a good having physical or chemical characteristics which are relevant
to the purposes or uses of the good under this Chapter."
Chapters 28-40 – Issue Nos. 10:  to endorse the fo llowing primary rules:  "CTSH" for headings 33.04,
33.05 and 33.07 as well as for subheadings 3306.10 and 3306.90.
Chapters 28-40 --  Issue No. 14:  to endorse option A ("CTH" with the Chapter Note on mixtures for
subheadings 3402.20 and 3402.90).
Chapters 28-40 – Issue Nos. 26-27:  to endorse the primary rule "CTH" for headings 39.01 through
39.14.
Chapters 28-40 – Issue No. 28:  to endorse option C (the primary rule of headings 39.16, 39.17, 39.19,
39.20 and 39.21 should read "CTH, or change within this heading to reinforced, laminated orsupported material").
Chapters 44-49 – Issue Nos. 3-4:  to endorse the following primary rules:  "CTHS" for split headings
ex44.10(a), ex44.11(a) and ex44.12(a);  "CTH" for split headings ex44.10(b), ex44.11(b) and
ex44.12(b).
Chapters 44-49 – Issue No. 7:  to endorse the foll owing primary rules:  "CTHS, except from finished
staves" for split heading ex44.16(a);  "CTH" for split heading ex44.16(b).
Chapters 50-63 – Issue No. 1:  to endorse the fo llowing primary rules: "CTHS" for split headings
ex50.03(a), ex53.01(b), ex53.02(b), ex53.03(b), ex53.04(b), ex53.05(b), ex55.05(a);  "CTSH" for
subheading 5202.91 and "CTH" for heading 51.04.
Chapters 50-63 – Issue No. 7:  to endorse Option B (each proposed rule "change by folding or
cabling" for headings 50.04-50.06, 51.06-51.10, 52.04-52.07, 53.06-53.08, 54.01-54.06, 55.08-55.11should be deleted).
Chapters 50-63 – Issue No. 9:  to endorse option B (split headings ex 52.08(c), ex 52.09(c),
ex 52.10(c), ex 52.11(c) and ex 52.12(c) should be deleted).G/RO/M/39
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Chapters 50-63 – Issue No. 10:  to endorse option B (the primary rule of heading 57.04 should read
"CTH, except from heading 56.02").
Chapters 50-63 – Issue No. 27:  to endorse option B (the primary rule of split heading ex56.08(c)
should read "CTH, except from 58.04").
Chapters 50-63 – Issue No. 38:  to endorse option A (the primary rule of heading 59.04 should read
"CTH").
Chapters 50-63 – Issue No. 40:  to endorse option A (the primary rule of split heading ex59.07(a)
should read "CTHS".
Chapters 50-63 – Issue Nos. 41-43:  to endorse the following primary rule: "CTH" for headings 59.08,
59.09 and 59.10; "CTH, except by cutting only" for renumbered split heading ex 59.11(b) (the current
split heading ex 59.11(b) should be renumbered as 59.11(a), and the description of split heading
ex59.11(b) should read "Other").
Chapters 50-63 – Issue No. 83:  to delete this issue.Textile-related chapters – Issue No. 84:  to endorse option A (the primary rule of subheading 9612.10
should read "CTH").
Chapters 64-67 – Issue No. 1:  to endorse option A (the primary rule of heading 65.03 should read
"CTH").
Chapter 71 – Issue No.3:  to endorse option A (the primary rule of split headings ex71.13(a) and
ex71.14(a) should read "CTHS";  the primary rule of heading 71.15 should read "CTH").
Chapters 72-73 - Issue Nos. 1-2:  to endorse the following primary rules:  "CTH, except from
headings 72.08 through 72.12, and except from headings 72.13 through 72.15 when this change
results from cutting or bending" for split heading ex72.16(a);  "CTH, except from heading 72.09 or
split heading ex72.11(b), and except from headin g 72.15 when this change results from cutting or
bending" for split heading ex72.16(b);  "CTH, except from heading 72.19 or 72.20, and except fromheading 72.21 or split heading ex72.22(a) when this change results from cutting or bending" for split
heading ex72.22(b)
32;  "CTH, except from heading 72.25 or 72.26, and except from heading 72.27 or
split heading ex72.28(a) when this change result s from cutting or bending" for split heading
ex72.28(b);  "CTH, except from split heading ex72.19(b) or ex72.20(b);  or CTHS from split heading
ex72.22(a)" for split heading ex72.22(c);  "CTH, except from split heading ex72.25(b) or ex72.26(b);or CTHS from split heading ex72.28(a)" for split heading ex72.28(c).
Chapters 74-81 – Issue No. 20:  to endorse option B (the primary rule of split heading ex76.10(c)
should read "CTH, except from heading 76.04, 76.05, 76.06, 76.08 or 76.09").
Chapters 74-81 – Issue No. 24:  to endorse option A (the primary rules should read as follows:G/RO/M/39
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ex81.01(e), ex81.02(e),
ex81.03(e), ex81.04(e),
ex81.05(e), ex81.06(e),
ex81.07(e), ex81.08(e),
ex81.09(e), ex81.10(e),ex81.11(e)CTHS; or cold-rolling from articles of the same split
heading
ex81.01(g), ex81.02(g),ex81.03(g), ex81.04(g),
ex81.05(g), ex81.06(g),ex81.07(g), ex81.08(g),
ex81.09(g), ex81.10(g),
ex81.11(g), ex81.13(h)CTHS; or cold-rolling from articles of the same split
heading
ex8112.19(b), ex8112.20(e),
ex8112.30(e), ex8112.40(e),
ex8112.99(b)CTSHS; or cold-rolling from articles of the same split
subheading
ex8112.19(d), ex8112.20(g),
ex8112.30(g), ex8112.40(g),
ex8112.99(d)CTSHS; or cold-rolling from articles of the same split
subheading
Chapters 82-83 – Issue No. 4:  to endorse option B1 (the primary rule of subheading 8205.59 should
read "CTH").
Chapters 82-83 – Issue No. 5:  to endorse option A (the primary rule of subheading 8207.13 should
read "CTSH";  the primary rule of split subheading ex8207.19(b) should read "CTSHS").
Chapters 82-83 – Issue No. 10:  to endorse option A (the primary rule of split subheadings
ex8301.10(b), ex8301.20(b), ex8301.30(b) and ex8301.40b) should read "CTH, or change from
heading 8301.60").
Chapters 82-83 – Issue No. 11:  to endorse option B (the primary rule of subheadings
8302.10-8302.50 should read "CTH").
Chapters 82-83 – Issue No. 12:  to endorse opti on A2 (the primary rule should read as follows:
"CTHS" for ex 83.03(a);  "CTH" for ex 83.03(b)).
Chapters 84, 85 and 90 – Issue No. 5:  to endorse the text recommended by the Chairman (a primary
rule of chapters 84, 85 and 90 should read "Goods assembled from a collection of parts classified as
the assembled good by application of General Interpretative Rule 2 shall have origin in the country of
assembly, provided the assembly would have satisf ied the primary rule for the good had each of the
parts been presented separately and not as a collection").
Chapters 84, 85 and 90 – Issue No. 6:  To delete this issue.Chapters 84, 85 and 90 – Issue Nos. 11 and 12:  to endorse the following chapter Note: "A change of
classification which results from the disassembly of goods shall not be considered as the changerequired by the rule set forth in the matrix.  The country of origin of the parts recovered from the
goods shall be the country where the parts are recovered, unless the importer, exporter or any personG/RO/M/39
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with a justifiable cause to determine the origin of parts demonstrates another country of origin on the
basis of verifiable evidence such as origin marks on the part itself or documents."
Chapters 84, 85 and 90 – Issue Nos. 15, 16, 17, 18, 19, 34, 40, 41, 42, 43, 46, 47, 48, 49, 53, 64, 66,
67, 78, 79, 81, 82, 83, 84 and 86:  to delete these issues4.
Chapters 84, 85 and 90 – Issue No. 28:  To delete this issue.Chapters 84, 85 and 90 – Issue No. 35:  to endorse the primary rule "CTH, or change to this
subheading by assembly of parts, preceded by heat treatment and grinding (if necessary), of the inner
or outer ring of split subheading 8482.99(b)" for subheadings 8482.10 through 8482.80.
Chapters 84, 85 and 90 – Issue No. 36:  to endorse  the following primary ru les:  "CTH, or change
from split subheading 8482.99(b)" for split subheading 8482.99(a);  "CTH" for split subheadings
8482.99(b) and 8482.99(c).
Chapters 84, 85 and 90 – Issue No. 37:  to endorse the primary rule "CTH, except from heading 8482,
or change to this subheading by assembly of parts, preceded by heat treatment and grinding (if
necessary) of the inner or outer ring of split subheading 8482.99(b)" for subheading 8483.20.
Chapters 84, 85 and 90 – Issue No. 38:  to endorse option D (the primary rule of subheading 8484.20
should read "CTH").
Chapters 84, 85 and 90 – Issue No. 39:  to endorse  the following primary rule of subheading 8484.90:
"CTSH, except when the change results only from putting up in pouches, envelopes or similar
packings".
Chapters 84, 85 and 90 – Issue No. 45:  to delete this issue and split subheadings ex8516.90(a) and
ex8516.90(b).
Chapters 84, 85 and 90 – Issue No. 52:  to delete this issue and split subheadings ex8524.91(a) and
ex8524.91(b).
Chapters 84, 85 and 90 – Issue No. 58:  to delete this issue.Chapters 84, 85 and 90 – Issue No. 65:  to delete this issue and split heading ex85.41(h).Chapters 86-89 – Issue No. 70
2:  to delete this issue.
Chapter 91 – Issue No. 2:  to endorse option A (the description of split heading ex91.10(b) should
read "Complete watch or clock movements, par tly assembled and incomplete watch or clock
movements, assembled, containing at least two of the following components on a common support: time
reference device, device for converting the time reference for purposes of display, time setting
mechanism or opto-electronic display";  the primary rule of split heading ex91.10(b) should read"CTH;  or change from split heading ex91.10(a)).
Chapters 93-97 – Issue No. 10:  to endorse the fo llowing primary rule:  "Changes which result from
change of use" for Note 1(c) of chapter 94;  "CTH" for subheadings 9401.90 and 9403.90.
Chapters 93-97 – Issue Nos. 13-20:  to endorse th e following primary rule:  "CTH" for split headings
ex95.01(a), ex95.01(b), 9502.10, ex95.03(b), ex95.04(b), ex95.05(b) and ex95.06(b);  "CTHS, except
                                                     
2 Two options are to be kept in the relevant documents.G/RO/M/39
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from split heading ex95.01(a)" for split heading e x95.01(c);  "CTHS" for split headings ex95.03(c),
ex95.03(d), ex95.03(e), ex95.04(a) and ex95.05(a);  "CTH, or change from blanks of heads that are
not further worked than roughly shaped" for split heading ex95.06(a).
Chapters 93-97 – Issue No. 27:  to endorse the following primary rule of subheading 9609.10:
"CTSH, except from wood or plastic form prepared for assembly."
2.2 The representative of Malaysia stated that they joined consensus for the sake of moving
forward and reserved the right to revisit some issues  if necessary, at the appropriate time, when the
subject of overall coherence was discussed.
2.3 The CRO took note of the statement.
III. IMPLICATIONS OF THE IMPLEMENTATION OF THE HARMONIZED RULES
OF ORIGIN ON OTHER WTO AGREEMENTS
3.1 The CRO agreed to revert to this issue at the next meeting.
IV. SEVENTH ANNUAL REVIEW OF THE IMPLEMENTATION AND OPERATION
OF THE AGREEMENT ON RULES OF ORIGIN (G/RO/W/73)
5.1 The CRO conducted its annual review of the implementation and operation of the Agreement
on the basis of the note prepared by the Secretariat (G/RO/W/73).  It was agreed that the Secretariat
issue a revised document in the G/RO/-- series, taking into account the work of the CRO during this
session and adding the reference to the mandate from the General Council to complete the remaining
work on the harmonization of non-preferential rules of origin (G/RO/50).
V. OTHER BUSINESS
A. AGENDA FOR THE APRIL MEETINGS OF THE CRO
4.1 The CRO agreed the agenda for the April meetings as follows:
Informal Meetings
8-9 April                      Implications of the HWP  on other WTO agreements
Overall architecture
10-12 April Chapters 1-24 (agricultural products and fish)
15-16 April Chapters 50-63 (textiles) and related chapters
Chapters 64-67 (footwear and headgear)
17-18 April Chapters 28-40 (chemicals)
Chapters 72-73 (iron and steel)Chapters 74-81 (non-ferrous metals)
Chapters 82-83 (articles of metals)
Chapters 68-70 (ceramics)
Chapter 71 (precious stones)
Chapter 91 (watches)G/RO/M/39
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Chapters 25-27 (mineral products)
Chapters 41-43 (leather)
Chapters 44-49 (wood and paper)
Chapters 92-97 (Musical instrument and other articles)
Chapters 86-89 (transportation equipment)
Chapters 84, 85 and 90 (machinery)
19 April (a.m.) - Reporting of the informal meetings;
- Endorsement of the proposals on the harmonised rules of origin;
-a n d
- Other business
Formal Meeting
19 April (noon)
B. DATES OF THE JUNE MEETINGS OF THE CRO
4.2 The CRO agreed to the dates of the June meetings as follows:
Informal meetings
17-28 (a.m.) JuneFormal meeting
28 June (p.m.)
C. P
LAN OF WORK TO EXPEDITE THE COMPLETION OF THE HWP
4.3 The CRO agreed to the plan of work for the completion of the HWP as follows:
Before the 1st Session of the CRO in 2002
Completion of the homework
- Some Members volunteered to provide compromise solutions for issues of particular
importance to those Members. (The list of such issues is provided as Annex 1)
- Those Members are urged to circulate such compromise solutions by 15 March 2002 so that
they could be reviewed by other Members with sufficient time.
Escape from the minority position
- Members, supporting minority positions, are urged to seriously reconsider their positions in
support of Chair’s recommendation.
- In case it is absolutely impossible to support Chair’s recommendation, those Members shall
provide a “reasoned and adequate”  explanation as to why it is the case and circulate a
compromise solution by 15 March 2002.
A Supplement to the Non-paper
- The Chair will prepare a document to supplement the non-paper.G/RO/M/39
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- In the supplement, the Chair shall group together closely related issues found in various
different places in the chapters on agriculture and textiles. (For example, issues related with
oils, margarines and fats in agriculture; issues related with printing and dyeing in textile)
During the 1st Session of the CRO
“Aim high”
- On the basis of pre-sessional work outlined above, the objective of the 1st session would be to
achieve consensus on all the remaining issues.
Link with the 2nd Session
- On the limited number of issues not ready for consensus at the 1st session, the Members
supporting options other than Chair’s recommendation would be urged to provide an
explanation as to why they cannot support Chair’s recommendation.
- Such explanations would be thoroughly reviewed by the CRO.
- On the basis of such a review, a compromise option would be prepared for consulation and
decision at the 2nd Session of the CRO.
ANNEX I. LIST OF THE HOMEWORK (EXAMPLES, TO BE FURTHER EXPANDED)
(Chapters 28-40)
ISSUES 1-3 : FOR CH AND THE US
Issue 4 : for CH
Issue 22 : for the US
Issue 30 : for EC and the US
(Chapters 68-70)
ISSUES 9-11 : FOR EC
(Chapters 74-81)
ISSUE 17 : FOR EC AND THE US
(Chapters 84,85 and 90)
Issue 13 : for EC
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