WORLD TRADE
ORGANIZATIONG/RO/45/Rev.2
25 June 2002
(02-3525)
Committee on Rules of Origin
INTEGRATED NEGOTIATION TEXT FOR THE
HARMONIZATION WORK PROGRAMME
OVERALL ARCHITECTURE
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 also  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 of the overall architecture
and reflects the progress made by the CRO in April 2002.This document has been prepared under the Secretariat's ownresponsibility and without prejudice to the positions of Members
and to their rights and obligations under the WTOG/RO/45/Rev.2
Page 2
HARMONIZED NON-PREFERENTIAL RULES OF ORIGIN
- Where no square bracket is placed in the text, it is understood that a general consensus has been
reached on the text, subject to the overall coherence examination.
DEFINITIONS
References to "manufacturing", "producing" or "processing" goods include any kind of working,
assembly or processing operation.
Methods of obtaining goods include manufacturing, producing, processing , raising, growing,
breeding, mining, extracting, harvesting, fishin g, trapping, gathering, collecting, hunting and
capturing.
"Material" includes ingredients, parts, components, subassemblies and goods that were physically
incorporated into another good or were subject to a process in the production of another good.
"Originating material" means a material whose country of origin, as determined under these rules, is
the same country as the country in which the material is used in production.
"Non-originating material" means a material whose c ountry of origin, as determined under these rules,
is not the same country as the country in which that material is used in production.
"Customs Valuation Agreement" means the Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade 1994.G/RO/45/Rev.2
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GENERAL RULES
General Rule 1:  SCOPE OF APPLICATION
Rules of Origin provided in this Annex shall be as defined in Article 1, paragraph 1 of the
Agreement on Rules of Origin annexed to the Agreement Establishing the World Trade Organization
(WTO), and shall be applied for the purposes set out in Article 1, paragraph 2 of the Agreement on
Rules of Origin.
General Rule 2:  HARMONIZED SYSTEM
References to headings and subheadings are references as they appear in the Harmonized
Commodity Description and Coding System (herei nafter referred to as “Harmonized System” or
“HS”) as amended and in force.  Classification of goods within headings and subheadings of the
Harmonized System is governed by  the General Interpretative Rules and any relative Section, Chapter
and Subheading Notes to that System.  Classification of goods within any additional subdivisionscreated for purposes of the rules of origin  shall also be governed by the General Interpretative Rules
and any relative Section, Chapter and Subheading Notes to the Harmonized System, unless the rules
of this Annex otherwise require.
Chairman's proposed text for a possible paragraph 2:
The possible effects of amendments to the HS on harmonized non-preferential rules of origin
shall be examined according to the review mechanism referred to in Article 6(3) of the ARO.
Alternative text:
When amendments to the Harmonized System are recommended by the CCC, their possible
effect on [the results of origin determinations under – brackets requested by IND and PHI ] the
harmonized non-preferential rules of origin shall be examined by the CRO.  Any amendments
of the rules of origin resulting from such an examination shall take effect on the date
approved by the Ministerial Conference.G/RO/45/Rev.2
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General Rule 3:  DETERMINATION OF ORIGIN
The country of origin of a good shall be determined in accordance with these General Rules
and in accordance with the provisions of Appendix 1 and Appendix 2, applied in sequence.
General Rule 4:  NEUTRAL ELEMENTS
[Unless otherwise provided in this Annex, (MOR) (TUN )] in order to determine whether a
good originates in a country, the origin of th e power and fuel, plant and equipment, including
safety equipment, or machines and tools used to obtain a good or the materials used in its
manufacture which do not remain in the good or form part of the good shall not be taken intoaccount.
Consensus on the unbracketted text was confirmed.  However one delegation requested that the
bracketed text be included in the provision until a complete picture was obtained.
General Rule 5:  PACKING AND PACKAGING MATERIALS AND CONTAINERS
Unless the provisions of Appendix 1 or Appendix 2 otherwise require, the origin of packingand packaging materials and containers presented with the goods therein shall be disregardedin determining the origin of the goods under General Rule 3, provided such packing and
packaging materials and containers are classified with the goods under the Harmonized
System.  The packing and packaging materials and containers which are not classified with
their contents are separate goods, thus their or igin shall be determined  in accordance with the
appropriate rules set forth in Appendix 1 and Appendix 2.
Consensus had already been reached at the previous session.  However one delegation requested that
the alternative text be contained in the box until a complete picture was obtained .
Alternative text:
A.  The origin of packing and packaging materials and containers presented with the goods
therein shall be disregarded in determining the origin of the goods under General Rule 3,
provided such packing and packaging materials and containers are classified with the goods
under the Harmonized System,
B.  When a container is presented with its contents and the container gives the whole its
essential character so that the contents are classified with the container, the origin of the
whole shall be determined on the basis of the or igin of the container, as set forth in Appendix
1 and Appendix 2, and
C.  When packing, packaging materials or containers and their contents are classified
separately under the Harmonized System, their origin shall be separately determined in
accordance with the appropriate rules set forth in Appendix 1 and Appendix 2.G/RO/45/Rev.2
Page 5
Reason:  The current text of General Rule 5 does not take into account the situation where a
container gives the whole its essential character and the container with its contents are
classified under the provision for the container.  Attention is called to the last sentence of HS
General Interpretative Rule 5(a).  Draft General Rule 5(b), above, is intended to remedy that
situation.
General Rule 6:  ACCESSORIES AND SPARE PARTS AND TOOLS
Accessories, spare parts, tools and instructional or other informational material classified andpresented with a good shall be disregarded in determining the origin of that good under
General Rule 3, provided they are normally sold therewith and correspond, in kind and
number, to the normal equipment thereof.G/RO/45/Rev.2
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APPENDIX 1 - Wholly Obtained Goods
1. Rule 1: Scope of Application
This Appendix sets forth the definitions of the goods that are to be considered as being wholly
obtained in one country.
2. Rule 2: Minimal Operations and Processes
Operations or processes undertaken, by themselves or in combination with each other for the
purposes listed below, are considered to be minimal and shall not be taken into account in determining
whether a good has been wholly obtained in one country:
(i) ensuring preservation of goods in good condition for the purposes of transport or storage;
(ii) facilitating shipment or transportation;
(iii) packaging or presenting goods for sale.
Consensus on this rule was confirmed.  It was agreed that the possibility of application of this rule to
Appendix 2 should be reconsidered at a later stage when the work was virtually completed.
Definitions Notes
1. The following goods are to be considered as
being wholly obtained in one country :
(a) Live animals born and raised in that country; In definitions 1 (a), (b), and (c) the term "animals"
covers all animal life, including mammals, birds,
fish, crustaceans, molluscs, reptiles, bacteria andviruses.
(b) Animals obtained by hunting, trapping, fishing,
gathering or capturing in that country;Definition 1 (b) covers animals obtained in the
wild, whether live or dead, whether or not born
and raised in that country.
(c) Products obtained from live animals in that
country;Definition 1 (c) covers products obtained from
live animals without further processing, includingmilk, eggs, natural honey, hair, wool, semen anddung.
(d) Plants and plant products harvested, picked or
gathered in that country;Definition 1 (d) covers all plant life, including
fruit, flowers, vegetables, trees, seaweed, fungi
and live plants grown in that country.
(e) Minerals and other naturally occurring
substances, not included in definitions (a)-(d),extracted or taken in that country;Definition 1 (e) covers crude minerals and other
naturally occurring substances, including rock or
solar salt, crude mineral sulphur occurring in free
state, natural sands, clays, stones, metallic ores,crude oil, natural gas, bituminous minerals, natural
earths, ordinary natural waters, natural mineral
waters, natural snow and ice.G/RO/45/Rev.2
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Definitions Notes
(f) Scrap and waste derived from manufacturing or
processing operations or from consumption inthat country and fit only for disposal or for therecovery of raw materials;Definition 1(f) covers all scrap and waste,
including scrap and waste resulting frommanufacturing or processing operations or
consumption in the same country, scrap
machinery, discarded packaging and household
rubbish and all products that can no longer
perform the purpose for which they wereproduced, and are fit only for discarding or for the
recovery of raw materials.  Such manufacturing or
processing operations include all types of
processing, not only industrial or chemical but
also mining, agricultural, construction, refining,incineration and sewage treatment operations.
(g)Articles collected in that country which can no
longer perform their original purpose there norare capable of being restored or repaired and
which are fit only for disposal or for the
recovery of parts or raw materials;
(h)Parts or raw materials recovered in that country
from articles which can no longer perform their
original purpose nor are capable of being
restored or repaired;
(i) Goods obtained or produced in that country
solely from products referred to in (a) through
to(h) above;G/RO/45/Rev.2
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Definitions Notes
[(2)]Alternative Text 1 (EC)
[(i)  Products of sea-fishing and other products
taken from the sea, outside the territorial sea of
a country, are considered to be wholly
obtained in the country whose flag the vessel
that carries out those operations is entitled tofly.[For the purposes of point (2), the term "territorial
sea of a country" is that as referred to in the United
Nations Convention on the Law of the Sea.]
(ii)  Goods obtained or produced on board afactory ship outside the territorial sea of a
country are considered to be wholly obtained
in the country whose flag the ship that carries
out those operations is entitled to fly, provided
that these goods are manufactured fromproducts referred to in subparagraph (i)
originating in the same country.
(iii)  Products taken from the sea bed orsubsoil beneath the sea bed, outside the
territorial sea of a country, are considered to
be wholly obtained in the country that has the
rights to exploit that sea bed or subsoil inaccordance with the provisions of the UN
Convention on the Law of the Sea.]
([JPN], [MOR], [NOR], [US], [CAN], [KOR])
Japan's alternative text for (iii)
[(iii)  Products taken from the continental shelf
of a country are considered to be wholly
obtained in the coastal state, and the products
taken from the sea bed or subsoil beneath thesea bed beyond the limits of the jurisdiction of
a country are considered to be wholly obtained
in the country that has the right to exploit that
sea bed or subsoil in accordance with the
provisions of the UN Convention on the Lawof the Sea.]G/RO/45/Rev.2
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Definitions Notes
[(2)]Alternative Text 2 (Argentina)
[(i)  Products of sea fishing and other products
taken from waters beyond the sovereignty and
jurisdiction of a State are considered to be
wholly obtained in the country whose flag the
vessel that carries out those operations is
entitled to fly.(ii)  Goods obtained or produced on board a
factory ship in the high seas are considered to be
wholly obtained in the country whose flag the
ship is entitled to fly, provided that those goods
are manufactured from the products referred toin subparagraph (i) above and according to that
same subparagraph originating in the same
country.
(iii)  Mineral products obtained from the sea bed
and subsoil beyond the limits of nationaljurisdiction (the Zone) are considered:
(a)  obtained wholly in the State that has
exploitation rights, granted by the International
Seabed Authority,
(b)  obtained wholly in the sponsoring State ofnatural or juridical persona which has
exploitation rights, granted by the Seabed
Authority.][In conformity with the 1982 UN Convention on
the Law of the Sea (UNCLOS), the coastal State
has customs jurisdiction in the Contiguous Zone.
Thus any operation therein performed should be
considered as carried out in that State.
No provision of this paragraph/part shall beinterpreted in contradiction of the provisions of
the 1982 Convention on the Law of the Sea.]
 [(2)] Alternative Text 3
[(i)  Products of sea-fishing and other products
taken from the sea outside a country are
considered to be wholly obtained in the country
of registration of the vessel that carries out thoseoperations.
(ii)  Goods obtained or produced on board
factory ships are considered to be wholly
obtained in the country of registration of the
factory ship, provided that those goods are
manufactured from the products referred to in
subparagraph (i) originating in the samecountry.
(iii)  Products taken from the sea-bed or subsoil
beneath the sea-bed outside a country are
considered to be wholly obtained in the country
that has the rights to exploit that sea-bed orsubsoil.] [COL] [The term “registration” in Definition 2(i) and
(ii) includes registration that a country grants to
chartered vessels or factory ships, provided this
registration is in accordance with therequirements of that country.]G/RO/45/Rev.2
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Definitions Notes
[(2)]Alternative Text 4 (Brazil)
[(i)  Products of sea-fishing and other products
taken from the sea outside the exclusive
economic zones, over which the coastal State
has jurisdiction, are considered to be whollyobtained in the country whose flag  the vesselthat carries out those operations is entitled to fly.
(ii)  Goods obtained or produced on board
factory ships in the high seas are considered to
be wholly obtained in the country whose flag the
ship is entitled to fly, provided that those goods
are manufactured from the products referred toin subparagraph (i) originating in the samecountry.
(iii)  Products taken from the sea-bed or subsoil
beneath the limits of the continental shelf of acoastal State are considered to be wholly
obtained in the country that has the rights to
exploit that sea-bed or subsoil.][1.  The term "flag" in Definition (I) and (ii)
includes the registration that a country grants to
chartered vessels or factory ships, provided this
registration is in accordance with the requirementsof that country.
2.  Use of terms and scope for the purposes of this
point (2) as defined in accordance with the
provisions of the United Nations Convention on
the Law of the Sea.]
[(2)]Alternative Text 5 (Philippines)
[(i)  Products of sea-fishing and other products
taken from waters beyond the sovereignty and
jurisdiction of a State are considered to be
wholly obtained in the country of registration ofthe vessel that carries out those operations.
(ii)  Goods obtained or produced on board a
factory ship from waters beyond the sovereignty
and jurisdiction of a State are considered to bewholly obtained in the country of registration of
the factory ship that carries out those operations,
provided that these goods are manufactured
from products referred to in subparagraph (i)
originating in the same country.
(iii)  Products taken from the sea bed or subsoil
beneath the sea bed in waters beyond the
sovereignty and jurisdiction of a State, are
considered to be wholly obtained in the countrythat has the rights to exploit that sea bed or
subsoil in accordance with the provisions of the
UN Convention on the Law of the Sea.]G/RO/45/Rev.2
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Definitions Notes
[(2)]Alternative Text 6 (India)
[(i)  Products of sea-fishing and other products
taken from the sea outside the territorial sea of a
country but within its exclusive economic zone,are considered to be wholly obtained in thatcountry.
(ii)  Goods obtained or produced on board a
factory ship, outside the territorial sea of a
country but within its exclusive economic zone,are considered to be wholly obtained in the
country, provided that these goods are
manufactured from products referred to insubparagraph (i) originating in the same country.
(iii)  Products of sea-fishing and other products
taken from waters in the high seas are
considered to be wholly obtained in the country
whose flag the vessel that obtains such products
is entitled to fly.
(iv) Goods obtained or produced on board a
factory ship in the high seas are considered to be
wholly obtained in the country whose flag the
ship is entitled to fly, provided that those goods
are manufactured from the products referred toin subparagraph (iii) originating in the same
country.
(v)  Products taken from the sea bed, ocean floor
or subsoil thereof, outside the territorial sea butwithin the continental shelf of a country, are
considered to be wholly obtained in that country.
(vi)   Products taken from the sea bed, ocean
floor or subsoil thereof beyond the limits of
national jurisdiction, are considered to be wholly
obtained in the country that has the rights toexploit that sea bed, ocean floor or subsoil
thereof.]The terms "territorial sea of a country",
"exclusive economic zone", "continental shelf"
and "high seas" have the same meaning as in theUnited Nations Convention on the Law of the Sea.G/RO/45/Rev.2
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APPENDIX 2 - Product Specific Rules of Origin
Rule 1:  Scope of Application
This Appendix sets forth rules for determining the country of origin of a good when the origin
of the good is not determined under Appendix 1.
Rule 2:  Application of Rules
a) The rules provided in this Appendix are to be applied to goods based upon their classification in
the HS and any additional subdivisions created thereunder, as referred to in General Rule 2 of this
Annex.
b) All primary rules contained in this Appendix are co-equal.  [They shall be applied in conjunction
with Chapter Notes and relevant provisions of this Appendix.]
c) [Unless otherwise specified], primary rules shall apply only to non-originating materials .
d) [Where the primary rules require a change in clas sification, the following changes in classification
shall not be considered in determining the origin of the good :
• changes which result from disassembly;
• changes which result from packaging or repackaging;
• changes which result solely from application of General Rule of Interpretation 2 (a) of the HS
with respect to collections of parts that are presented as unassembled or disassembled articles.
• changes which result from merely putting up in sets.
However, such changes shall not preclude conferring origin on a good if origin is conferred as a
result of other operations.]
e) Where none of the primary rules are satisfied, origin shall be determined according to Rule 3
(c) through (f)[(g)] of this Appendix.
Consensus was confirmed on Rule 2(a).
As regards Rule 2(b) the concept of the co-equality of primary rules was acceptable to all Members.
Further fine-tuning of the text would be needed at a later stage when the work was virtually
completed.
As regards Rule 2(c), consensus was achieved (subject to HK):  The bracketed text would be
reconsidered when a complete picture was obtained.
As regards Rule 2(d), it was agreed that this rule be reconsidered at a later stage when the work was
virtually completed.
As regards Rule 2(e), no objection was raised.G/RO/45/Rev.2
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f) Rule 3:  Determination of origin
The country of origin shall be determined in acc ordance with the following provisions, applied in
sequence:
Primary Rules
(a) [The country of origin of a good is the country designated as such in the applicable primary
rule.](EC) [NOR](JPN)
 [When a primary rule specifies that the origin of a good is the country in which the good was
obtained in its natural or unprocessed state, the country of origin of the good shall be the [single(IND)] country in which the good was obtained in that condition;] (IND)
[When a primary rule requires that the country of origin of a good is the country in which:
(i) the good was obtained in its natural or unprocessed state, the country of origin of the good
shall be the single country in which the good was obtained in that condition;  or
(ii) a specifically designated stage of production was attained, the country of origin of the good
shall be the single country in which such stage of production was attained;] (US)
[The country of origin is the country determined as such by the application of the primary rule]
(CAN)[NOR]
(b) The country of origin of a good is the last country of production, provided that a primary rule
applicable to the good was satisfied in that country[
1];
Residual Rules:
(c) [When a good is produced by further processing of an article which is classified in the same
subdivision2 as the good, the country of origin of the good shall be the single country in which that
article originated;]
[When a good undergoes one or more operations that do not result in a change in its classification,
the origin of the resulting good is the single country from which the good originated immediately
prior to such operations, provided that any material that might have been  added satisfies any
change of tariff classification rule applicable to the good]
(d) The country of origin of the good shall be determined as indicated in the applicable residual rule
specified at the chapter level;
(e) When the good is produced from materials all of which originated in a single country, the country
of origin of the good shall be the country in which those materials originated;
(f) [When the good is produced from materials (whether or not originating) of more than one country,
the country of origin of the good shall be the country in which the major portion of those materials
originated, as determined on the basis specified in each chapter, [and in the event of two or more
                                                     
1This applies also to primary rules requiring that the country of origin of a good is the country in which the good
was obtained in its natural or unprocessed state. (PHI)
2The term "subdivision" relates to the [lowest] level of classification of the good, i.e. heading, subheading or
split (sub)heading, as specified in Appendix 2.G/RO/45/Rev.2
Page 14
countries equally contributing major portions of those materials, the good shall be assigned a
multi-country origin]] ;  (IND)
 [When the good is produced from materials (whether or not originating) of more than one country,
the country of origin is the single country of origin of the materials that did not satisfy a primaryrule applicable to the goods ;  (US)
[When the good is produced from materials of more than one country, the country of origin of the
good shall be the country in which the major portion of the non-originating materials originated, as
determined on the basis specified in each chapte r.  However, when the originating materials
represent at least 50% of all the materials used, the country of origin of the good shall be the
country of origin of those materials] ;  (EC)
(g)[When the good is produced from materials (wheth er or not originating) of more than one country
that did not satisfy the primary rule applicable to the good, the country of origin of the good shall
be the country in which the major portion of those materials originated, as determined on the basis
specified in each chapter].  (US)
As regards Rule 3(a) one Member made a new proposal.  Members stated that they needed more
time to study this proposal.  Another Member suggested reversing the order of Rules 3(a) and
3(b).
As regards Rules 3(b), (c) and (f), there was a general agreement among Members on the basic
approach to Rule 3, namely, the application of primary rules in the last country of production as
the first test, the application of the origin-retaining concept as the second test, and the application
of major portion concept as a final test.  The gap among the various approaches would become
more bridgeable at a later stage when a complete picture was obtained.
Consensus was confirmed on Rules 3(d) and (e).  However it was noted that Rule 3(e) might not
be necessary, since the application of Rules 3(f) and (g) would result in the same origin outcome.
Rule 4:Intermediate materials
[Except as otherwise provided in the Appe ndix, (US)] materials which have acquired
originating status in a country are considered to be originating materials of that country for the
purpose of determining the origin of a good incorporating such materials, or of a good made
from such materials by further working or processing in that country.
The principle of this provision was acceptable to all Members.  However, one delegation
confirmed its request for the initial bracketed text to be included in the provision until a complete
picture was obtained.  Another delegation request ed that the box should contain an indication
whereby the originating status was acquired by fulfilling a primary rule or chapter residual rule.
Rule 5:[Interchangeable goods and materials]
[Where it is not commercially practical to keep separate stocks of interchangeable materials
or goods originating in different countries, the country of origin of each of the commingled
materials or goods may be allocated on the basis of an inventory management method
recognized in the country in which the materials or goods were commingled.  The use of this
system shall not give rise to more products originating in a specific country than would have
been the case had the commingled materials or goods been physically segregated.]G/RO/45/Rev.2
Page 15
Some Members questioned the meaning of the interchangeable goods and what type of goods or
materials were covered by this Rule.  Accordingly, proponents of the Rule were requested to
improve the text.
Rule 6:  Putting up in sets [or kits (CAN )(NZ)(CH)(IND) ]
Chairman's proposal
A distinction must be made between the following types of sets:
1. Sets which are explicitly mentioned in the HS (e.g. 82.14 – manicure sets;  3006.50 –
first aid boxes and kits;  96.05 – travel sets for personal toilet);
2. Goods which are classified as sets by application of GIR 3(b) or (c);
3. Goods merely put together that are not classified as sets by either GIR 3(b) or (c) or
within the HS.
There are three possible options:A. [US]  Unless otherwise provided in this A ppendix, goods put up in sets shall retain the
origin of the individual articles in the set.
B. [IND]  Goods put up in sets or kits shall retain the origin of the individual articles
except when such goods are explicitly mentioned as sets or kits in a heading or sub-
heading of the HS or are classified as sets or kits by application of GIR 3(b) of the HS,in which case the origin of the set or kit shall be the country where it is put up.
C. Merely putting articles into sets is not origin-conferring:  with this option there is no
need for a specific provision for sets, although it might be advisable to have this
element included in the new rule 2(b)/old rule 3 (Application of Rules):  the rule in thiscase might read "a CTH resulting from merely putting up in sets is not considered as
origin-conferring".  (MEX)
There is growing consensus on option C.  As option C implies some further quest in
the rules, following are the various possibilities:
[JPN][EC](CAN)(CH)  There is no need to have a specific rule for sets.  The country of
origin of a set put up from articles that originate in more than one country shall be
determined according to Residual Rule 3(f).
[CH]  The country of origin of a set put up from different articles shall be the country
which contributes with the highest value to the set, taking into account the value of the
articles and the work carried out, the value of the articles (including work) having the
same origin being taken together;  and
For the purposes of this paragraph, the term "work" means that the country which put
up articles into sets can consider its work (value) carried out as an equivalent part of the
calculation.
It might be advisable to have an explicit refe rence to sets of articles originating in oneG/RO/45/Rev.2
Page 16
country: The country of origin of a set [or kit] put up from articles that originate in  one
country shall be that country.  [PHI]
There was growing consensus that putting up in sets was not origin-conferring, and
that there was no need for a specific rule as well as for reference in Rule 2(d) of
Appendix 2.  Three delegations reserved their positions.
[Rule 7:  DE MINIMIS]
For the application of the primary rule, non-origina ting materials that do not satisfy the rule shall be
disregarded, provided that the totality of such materials does not exceed [10%] in value, weight or
volume, as specified in each chapter, of the good.
There was general support for this Rule.  Some Members stated that the nature of this Rule should be
optional for producers (although this Rule itself should be mandatory for all Members)."
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