WORLD TRADE G/RO/18/Add.1
3September 1997
ORGANIZATION(97-3550)
Committee onRules ofOrigin
EIGHTH REPORT OFTHE TECHNICAL COMMITTEE ONRULES OFORIGIN
TOTHE COMMITTEE ONRULES OFORIGIN
Note bytheSecretariat
Addendum
TheTechnical Committee onRules ofOrigin hassubmitted totheCommittee onRules ofOrigin
results ofitswork inanadministrative document (template) which contains agreed product-specific
rulesoforiginconcerningcertainproductsandproductssectors(Basket1decisions)aswellasunresolved
issues onwhich theTechnical Committee wasunable toreach consensus afterexhausting itstechnical
discussions. Asindicated indocument G/RO/18, theadministrative document isherewith circulated
toMembers, together withtheletter oftransmission oftheChairman oftheTechnical Committee on
Rules ofOrigin.G/RO/18/Add.1
Page2
Brussels, 12August 1997.
Dear Madame Berrig,
TheTechnical Committee onRules ofOrigin haslargely completed itswork onChapters 25
though 27,41through 43,and91oftheHarmonized System under thework programme for
harmonization ofrulesoforigin. Accordingly, Iamsubmitting totheCommittee onRules ofOrigin
onbehalf oftheTechnical Committee thefollowing results ofitswork under theharmonization work
programme:
Rules ofOrigin asagreed byconsensus intheTechnical Committee forproducts andproduct
sectors classified intheabove-referenced chapters oftheHarmonized System. Theagreed Rules of
Origin appear inthetables appended todocuments 41.610. 41.611 amd41.612 andaredesignated
asBasket 1decisions. TheTechnical Committee understands thatthese rules aretobeconsidered
bytheCommittee onRules ofOrigin withaviewtowards theirendorsement.
Unresolved Issues which theTechnical Committee, upon exhausting itsdiscussions without
reaching consensus, hasdecided should bereferred totheCommittee foritsconsideration. Ingeneral,
these issues relate totheidentification ofthelastsubstantial transformation performed onagood.
Theappended referral documents, ortemplates, identify theissues fordecision, setoutthediffering
views andoptions presented during Technical Committee discussions, andidentify therelevant
Harmonized System codes anddescriptions aswellastherelevant Technical Committee documents.
Theunresolved issues fordecision bytheCommittee areidentified alsointheappended tables, each
ofwhich covers anentire chapter oftheHS.
TheTechnical Committee andtheWCO Secretariat stand ready toassist theCommittee as
itaddresses these issues.
Please accept, Madame Berrig, theassurance ofmyhighest consideration.
Yours Sincerely,
R.JANECZKO
Chairman
Enclosures:
1.Referral documents forunresolved issues: Doc.41.611 forchapters 25-27, Doc41.612 forchapters
41-43, Doc.41.610 forchapter 91;annexed tothese documents aretables withagreed rulesoforigin
andproposed rules oforigin relating tounresolved issues; these tables contain alsoBasket 2issues
stillretained forfurther discussion byTCRO. Theretained issues areprinted insmall lettering;
2.Terminology Guide.G/RO/18/Add.1
Page3
WCO doc.41.611
UNRESOLVED ISSUES SUBMITTED FOR DECISION BYTHE COMMITTEE
ONRULES OFORIGIN FOR CHAPTERS 25-27
Issue forDecision, No.1
1. Istheproduction ofcement from clinker asubstantial transformation?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
2. Theobtaining ofcement from clinker isasubstantial transformation. Theruleoforigin for
thecement ofsubheadings 2523.21 -2523.90 should bebased onachange ofsubheading from
theclinkers ofsubheading 2523.10. Thefollowing technical information hasbeenprovided
insupport ofthisoption:
3. Characteristics ofclinkers andcement: Cement andclinkers aretwodifferent articles of
commerce withdifferent character andproperties, usesandname. Clinkers areobtained from
firing limestone containing asuitable proportion ofclay. Clinkers consist mainly ofcalcium
silicates inpebble form. Theclinkers cannot beusedasabuilding material unless transformed
intocement. They donothavethesame bonding effect ascement when mixed withfineand
coarse aggregates toproduce concrete foruseinconstruction. Cement, ontheother hand,
hastomeetcertainspecificationslikeminimumfinenessof225m²/kgandminimumcompressive
strength inorder tobeusedinconcrete work. Various types ofcement canbeproduced from
thesame clinkers. Toobtain cement fromclinkers, theclinkers havetobeground tohigher
fineness andinterground ingredients andadditives areintroduced during thegrinding process.
Itisconsidered thatitisthefactofanewproduct andnottheprocess which determines that
asubstantial transformation hasoccurred.
4. Production ofcement: Itisthetransformation from clinkers tocement which isthelast
substantial transformation toobtain cement. Toprepare thefinalproduct, cement, there may
beseveral transformations. Origin should beconferred based onthelastsubstantial
transformation. Theproduction ofclinkers tocement involves grinding under precise control
oftemperature inthefinish milltoprevent agglomeration. Gypsum andinterground ingredients
suchasslagforPortland BlastFurnace Cement, limestone formasonry cement, andmaterials
likecoalflyashandsilica fume aremixed during thegrinding process. Theprocess hasto
beprecise toachieve certain specifications suchasminimum compressive strength andfineness.
5. Thegrinding process effectively transforms clinker intoanewfinished product, cement, which
canthenbeusedforconcrete work. Thefinished product, cement hasdifferent properties
compared toclinkers. Cement should satisfy certain chemical properties depending onthe
finaluseofthecement. Thetechnical precision oftheendproduct suchasprecise andequal
particle sizefineness andminimum compressive strength toconform withindustry standards
forcement andfortheproduct tofulfilitsfunction wereimportant inidentifying anewproduct.
6. Inresponse totheproposition thatgrinding alone isnotsubstantial transformation, itisargued
thatfirstly, grinding isnotasimple operation. Itrequires highconsumption ofenergy and
precise control ofthetemperature inthefinish mill. Fortheproduction ofcement, theclinkers
havetobegrounded toaprecise particle sizeandfineness inorder toconform toindustry
standards ofminimum compressive strength. Secondly, grinding isalways combined withG/RO/18/Add.1
Page4
otherprocesses including theproportionally controlled mixing andblending withothermaterials
suchasblastfurnace slag,andthattheentire process represents substantial transformation.
Itwasfurther stated thatthereisnotradeinground clinkers notfurther processed intocement
andthatsuchground clinkers were anintermediate product thatcould notbeusedforany
purpose other thanfurther processing intocement.
OPTION B:
7. Theprocess toprepare cement from clinker isnotasubstantial transformation. Theruleof
origin forthecement ofsubheadings 2523.21 -2523.90 should bebased onachange ofheading
from theminerals ofheadings 25.21 -25.23.
8. Clinker isprepared fromprimary rawmaterials including limestone, clay,shale andironore.
Theprincipal stepsinmanufacturing clinker consist ofcrushing, grinding, mixing, andburning
rawmaterials tomake clinker. Theclinker isthenground tomake powdered cement. Achange
fromclinker ofsubheading 2523.10 tocements ofsubheadings 2523.21 to2523.90 doesnot
entail asubstantial transformation. Infacttheprocesses required toprepare clinkers aremore
varied andcomplex thanthegrinding necessary toconvert theclinker intopowdered cement
9. Production ofcement from clinker isa“simple ”process. Itismerely ground toreduce the
sizeofclinkers tocement. Grinding alone isnotconsidered asubstantial transformation. It
wasnoted thattheHSsubheading explanatory notedefines “Portland cement ”as“cement
obtained bygrinding Portland clinker withthepossible addition ofasmall quantity ofcalcium
sulphate ”andthatitmight benecessary todefine supplementary criteria toqualify therule
inorder toseparate “simple ”grinding.
Relevant HScodenumber
10. Subheadings 2523.21 (Portland cement: white cement, whether ornotartificially coloured),
2523.29 (Portland cement: other), 2523.30 (Aluminous cement) and2523.90 (Other hydraulic
cements)
References
11. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
Reference document (Doc. 39.861/Add 7,pages 4to5)
Reference document (Doc. 41.252, Appendix 2)
Reference document (Doc. 41.506)
Issue forDecision, No.2
12. Isthecrushing orpowdering ofnatural steatite andtalcasubstantial transformation?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
13. Thecrushing orpowdering ofnatural steatite ortalcisasubstantial transformation. Therule
oforigin should bebased onachange atsubheading levelform thenotcrushed orpowdered
material of2526.10.G/RO/18/Add.1
Page5
14. Thekeyelement forconsideration indeciding ifasubstantial transformation hadoccurred by
crushing orpowdering wasthattheendproduct hadadifferent character anduses. The
complexity oftheprocess itself wasnotaprimary factor inthisdecision andshould notbe
given much emphasis. Thetechnical precision oftheendproduct suchasprecise andequal
particle sizefortheproduct tofulfilitsfunction wereimportant inidentifying anewproduct.
OPTION B:
15. Merely grinding isnotconsidered tobring about asubstantial transformation. Thecountry
oforigin iswhere thegood isobtained initsnatural orunprocessed state.
Relevant HScodenumber
16. Subheadings2526.20(Naturalsteatite,whetherornotroughlytrimmedormerelycut,bysawing
orotherwise, intoblocks orslabs ofarectangular (including square) shape; talc:crushed or
powdered)
References
17. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
Issue forDecision, No.3
18. Istheprocessing ofmolybdenum oreintomolybdenum concentrate (lubricant) of25.30 a
substantial transformation?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
19. Theprocessing ofmolybdenum oreintomolybdenum concentrate (lubricant) of25.30 isa
substantial transformation.
20. TheMolybdenite concentrates classified inheading 25.30 areobtained frommolybdenum ores
(26.13)bycertainphysicaltreatmentssuchaswashing,grinding,flotationandbyheattreatment,
other thancalcination, designed todrive offtraces ofoilandwater, fornon-metallurgical uses
(lubrication). Other Molybdenite concentrates obtained bycalcination orroasting remain
classified withtheoreinheading 26.13. Because different methods ofprocessing theores
havebeenuseditisnotpossible toreclassify between theheadings asaresult ofadecision
onchange ofuse. Itisnotnecessary therefore toprovide anexclusion ofchange from
molybdenum concentrates of26.13 andtheruleoforigin should beCTH toprovide for
manufacture from themolybdenum oreof26.13.
21. Theconclusion thatasubstantial transformation hasoccurred isbased firstly ontheconclusion
thatanewproduct withnewusesandcharacteristics hasbeenproduced. Thenature ofthe
process andhowcomplex isnotadecisive factor.
OPTION B:
22. Molybdenum concentrates areclassified inheadings 25.30 and26.13. Achange ofclassification
between these products isnotasubstantial transformation.G/RO/18/Add.1
Page6
23. Theruleoforigin should beCTH except from theconcentrates ofheading 26.13.
Relevant HScodenumber
24. Partofheading 25.30 (Mineral substances notelsewhere specified orincluded)
References
25. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
Issue forDecision, No.4
26. Istheconversion ofmetal oresintoconcentrates, including bycalcination orroasting, a
substantial transformation?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
27. Metal oresextracted fromthemines arealways accompanied bysuchunwanted matter asmud,
dirtandgangue which canaddtothecosts oftransport orhamper subsequent metallurgical
operations. Toremove suchunwanted matter, metal oresarenormally converted intometal
oreconcentrates. Concentration isasubstantial transformation oftheoreandtheruleoforigin
should bebased onachange within theheading.
28. Theconcentration oforesisaprocess toenrich theorebyaseries ofoperations applied
sequentially intwophases: mechanical preparation byprimary crushing, screening, secondary
crushing andscreening, tertiary crushing andscreening, grinding tolessthan0.4mm tofree
theorecompletely; separation phase: byeither gravity process, magnetic separation orflotation
withchemical reagents. Anorecancontain aslittleas5-15% ofthemain material anditis
noteconomical toshipinthisform. Itistherefore normal toconcentrate theproduct. Generally
thisisdonenearthemine, butnotalways. Itistherefore possible thattwocountries maybe
involved intheobtaining oftheoresandoftheconcentrates oftheores. Itisacomplicated
process andthefactthatitnormally happens inthesame country isnotrelevant totheissue
ofsubstantial transformation which should bebased onthefactofproduction ofanewproduct:
aconcentrate.Otherphysicalorphysico-chemicaloperationsforconcentrationincludemagnetic
separation, gravimetric separation, flotation, screening, settling andfiltering. Calcination or
roasting arealsomethods ofconcentration considered tobesubstantial.
29. Itispossible thatseveral minerals canbefound together intheoreandconcentration inthis
casealsoseparates thedifferent metals toproduce aproduct withanewanddifferent character
anduse.Theproduct acquires anewstatus. Itisnotnecessary fortheruletospecify certain
processes assubstantial transformation.
30. Itisrecognised thatthere isadifference inthecharacter ofanaturally occurring high
concentration orethatisobtained inthatformfromtheground andconcentrates obtained from
lowgrade orebyprocessing. Theformer originates inthecountry where itisobtained inits
natural orunprocessed stateandthelatter, which hasbeensubstantially transformed, originates
inthecountry where theconcentration takes place.G/RO/18/Add.1
Page7
OPTION B:
31. Oresarenottraded internationally except asconcentrates. TheConcentration oforeshappens
neartheareaofmining oftheores. Theprocess ofremoving slagisnotconsidered tobea
substantial transformation. High grade orescanhavenaturally thesame concentration asa
concentrate. Iftheproduct occurs naturally itisnotappropriate tohave asubstantial
transformation rule.
Relevant HScodenumber
32. Headings 26.01 to26.17 (Ores andconcentrates)
References
33. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
Reference document (Doc. 41.384, page2)
Reference document (Doc. 41.424, page17)
Issue forDecision, No.5
34. Istheproduction ofbriquettes, ovoids andsimilar solid fuels manufactured from coala
substantial transformation?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
35. Themanufacture ofbriquettes, ovoids andsimilar solid fuelsfrom coalisconsidered tobe
asubstantial transformation. Theruleshould beCTSH toprovide forprocessing from the
coalofthesame heading.
36. Theprocess callsforcomplicated operations including crushing coal, subjecting thecoalto
lowtemperature carbonisation toproduce coalchar, mixing itwithbindmaterials, pressing
itintoshape asbriquettes orovoids orother shapes anddrying. Furthermore, theresultant
goods, which canbeignited easier canbeburnt stronger, canemitlesssmell andcanbe
preserved longer thantheoriginal goods, andhasthusbecome anewproduct.
OPTION B:
37. Theprocesses toobtain thegoods ofthissubheading donotbring about asubstantial
transformation. Origin should bethecountry where thecoalisobtained initsnatural or
unprocessed state.
Relevant HScodenumber
38. Subheading 2701.20 (Briquettes, ovoids andsimilar solid fuelsmanufactured from coal)G/RO/18/Add.1
Page8
References
39. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
Reference document (Doc. 39.861/Add. 6,page4)
Reference document (Doc. 41.351, page10)
Reference document (Doc. 41.384, page2)
Issue forDecision, No.6
40. Isthemanufacture ofpitch cokefrom pitches ofcoaltarsandother mineral tarsofthesame
heading asubstantial transformation?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
41. Pitch coke(subheading 2708.20) isobtained bythedistillation ofcoaltars,other mineral tars
oroftheirpitches. Itisanewproduct obtained asaresult ofasubstantial transformation.
Theruleshould reflect achange ofsubheading from 2708.10.
OPTION B:
42. Theprocessing toproduce pitchcokefrompitchisnotasubstantial transformation. Therule
should require achange ofheading form thecoaltarsorother mineral tars.
Relevant HScodenumber
43. Subheading 2708.20 (Pitch coke)
References
44. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)G/RO/18/Add.1
Page9
ANNEX TOWCO DOC. 41.611
Rules oforigin relating tounresolved issues submitted bytheTechnical Committee onRules ofOrigin
fordecision bytheCommittee onRules ofOrigin;
Agreed rulesoforigin submitted bytheTechnical Committee onRules ofOrigin forendorsement by
theCommittee onRules ofOrigin -designated as"Basket 1";
Rules oforigin retained bytheTechnical Committee onRules ofOrigin forfurther discussion -
designated as"Basket 2"andprinted insmall letteringG/RO/18/Add.1
Page10CHAPTER 25
[Chapter Residual Rule:
1. When goods ofthisChapter which comprise asingle commercial product andconsist ofamixture ofmaterials ofthesame heading orsubheading,
arenotwholly obtained inasingle country inaccordance withAppendix 1andapplication oftheproduct specific rules ofthisAppendix donotresult in
adetermination ofasingle country oforigin, thecountry oforigin shallbethecountry fromwhich thematerials (taken together) thatpredominate byweight
overallother materials (taken together) obtained from anyother single country. (US)] Basket 2
HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 25 Salt; Sulphur; Earth andStone;
Plastering Materials, Lime and
Cement
25.01 Salt(including table saltand
denatured salt) andpure sodium
chloride, whether ornotinaqueous
solution orcontaining added
anti-caking orfree-flowing agents;
seawaterAsindicated atthesplitheading level.
ex25.01 (a) -Pure sodium chloride CTHS Basket 1
ex25.01 (b) -Refined salt,other thanpure
sodium chlorideCTHS Basket 1
ex25.01 (c) -Other Thecountry oforigin ofthegoods shall be
thecountry inwhich thegoods ofthissplit
heading areobtained intheir natural or
unprocessed state.Basket 1
25.02 Unroasted ironpyrites Thecountry oforigin ofthegoods shall be
thecountry inwhich theunroasted iron
pyrites areobtained intheir natural or
unprocessed state.Basket 1
25.03 Sulphur orallkinds, other than
sublimed sulphur, precipitated
sulphur andcolloidal sulphur .Asindicated atthesplitheading level.G/RO/18/Add.1
Page11HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex25.03 (a)
ex25.03 (b)-Pure orrefined
-OtherCTHS
Thecountry oforigin ofthegoods shall be
thecountry inwhich thesulphur ofthis
splitheading isobtained initsnatural or
unprocessed state.Basket 1
25.04 Natural graphite Thecountry oforigin ofthegoods shall be
thecountry inwhich thenatural graphite
ofthisheading isobtained initsnatural or
unprocessed state.Basket 1
2504.10
2504.90-Inpowder orinflakes
-OtherAsindicated attheheading level
25.05 Natural sands ofallkinds, whether
ornotcoloured, other than
metal-bearing sands ofChapter 26Thecountry oforigin ofthegoods shall be
thecountry inwhich thenatural sands of
thisheading areobtained intheir natural or
unprocessed state.Basket 1
2505.10
2505.90-Silica sands andquartz sands
-OtherAsindicated attheheading level.
25.06 Quartz (other than natural sands);
quartzite, whether ornotroughly
trimmed ormerely cut,bysawing
orotherwise, intoblocks orslabs of
arectangular (including square)
shape.Thecountry oforigin ofthegoods shall be
thecountry inwhich thequartz or
quartzite ofthisheading isobtained inits
natural orunprocessed state.Basket 1
2506.10
2506.21
2506.29-Quartz
-Quartzite:
--Crude orroughly trimmed
--OtherAsindicated attheheading level.
25.07 Kaolin andother kaolinic clays,
whether ornotcalcined.Asindicated atthesplitheading levelG/RO/18/Add.1
Page12HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex25.07 (a)
ex25.07(b)-Calcined
-OtherCTHS
Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
splitheading areobtained intheir natural
orunprocessed state.Basket 1
Basket 1
25.08 Other clays (notincluding expanded
clays ofheading No._68.06),
andalusite, kyanite andsillimanite,
whether ornotcalcined; mullite;
chamotte ordinas earths.Asindicated atthesplitheading level.
ex25.08 (a)
ex25.08 (b)-Calcined
-OtherCTHS
Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
splitheading areobtained intheir natural
orunprocessed state.Basket 1
Basket 1
2508.10
2508.20
2508.30
2508.40
2508.50
2508.60
2508.70-Bentonite
-Decolourising earths andfuller ’s
earth
-Fire-clay
-Other clays
-Andalusite, kyanite andsillimanite
-Mullite
-Chamotte ordinas earthsAsindicated attheheading level.
25.09 Chalk Thecountry oforigin ofthegoods shall be
thecountry inwhich thechalk ofthis
heading isobtained initsnatural or
unprocessed state.Basket 1
25.10 Natural calcium phosphates, natural
aluminium phosphates and
phosphatic chalkThecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
heading areobtained intheir natural or
unprocessed state.Basket 1G/RO/18/Add.1
Page13HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2510.10
2510.20-Unground
-GroundAsindicated attheheading level.
25.11 Natural barium sulphate (barytes);
natural barium carbonate
(witherite), whether ornotcalcined,
other than barium oxide ofheading
No.28.16.Asindicated atthesubheading level.
2511.10 -Natural barium sulphate (barytes) Thecountry oforigin ofthegoods shall be
thecountry inwhich thenatural barium
sulphate ofthissubheading isobtained in
itsnatural orunprocessed state.Basket 1
2511.20 -Natural barium carbonate (witherite) Asindicated atthesplitsubheading level.
ex2511.20 (a)
ex2511.20(b)--Calcined
--OtherCTSHS.
Thecountry oforigin ofthegoods shall be
thecountry inwhich themineral ofthis
splitsubheading isobtained initsnatural
orunprocessed state.Basket 1
Basket 1
25.12 Siliceous fossil meals (forexample,
kieselguhr, tripolite anddiatomite)
andsimilar siliceous earths,
whether ornotcalcined, ofan
apparent specific gravity of1or
less.Asindicated atthesplitheading level.
ex25.12 (a)
ex25.12 (b)-Calcined
-OtherCTHS
Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
splitheading areobtained intheir natural
orunprocessed state.Basket 1
Basket 1
25.13 Pumice stone; emery; natural
corundum, natural garnet andother
natural abrasives, whether ornot
heat-treated.Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
heading areobtained intheir natural or
unprocessed state.Basket 1G/RO/18/Add.1
Page14HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2513.11
2513.19
2513.20-Pumice stone:
--Crude orinirregular pieces,
including crushed pumice
(“bimskies ”)
--Other
-Emery, natural corundum, natural
garnet andother natural abrasivesAsindicated attheheading level.
25.14 Slate, whether ornotroughly
trimmed ormerely cut,bysawing
orotherwise, intoblocks orslabs of
arectangular (including square)
shape.Thecountry oforigin ofthegoods shall be
thecountry inwhich theslate ofthis
heading isobtained initsnatural or
unprocessed state.Basket 1
25.15 Marble, travertine, ecaussine and
other calcareous monumental or
building stone ofanapparent
specific gravity of2.5ormore, and
alabaster, whether ornotroughly
trimmed ormerely cut,bysawing
orotherwise, intoblocks orslabs of
arectangular (including square)
shape.Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals of
heading areobtained intheir natural or
unprocessed state.Basket 1
2515.11
2515.12
2515.20-Marble andtravertine:
--Crude orroughly trimmed
--Merely cut,bysawing or
otherwise, intoblocks orslabs ora
rectangular (including square) shape
-Ecaussine andother calcareous
monumental orbuilding stone;
alabasterAsindicated attheheading level.G/RO/18/Add.1
Page15HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
25.16 Granite, porphyry, basalt,
sandstone andother monumental or
building stone, whether ornot
roughly trimmed ormerely cut,by
sawing orotherwise, intoblocks or
slabs ofarectangular (including
square) shape.Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
heading areobtained intheir natural or
unprocessed state.Basket 1
2516.11
2516.12
2516.21
2516.22
2616.90-Granite:
--Crude orroughly trimmed
--Merely cut,bysawing otherwise,
intoblocks orslabs ofarectangular
(including square) shape
-Sandstone
--Crude orroughly trimmed
--Merely cut,bysawing or
otherwise, intoblocks orslabs ofa
rectangular (including square) shape
-Other monumental orbuilding
stoneAsindicated attheheading level.
25.17 Pebbles, gravel, broken orcrushed
stone, ofakind commonly used for
concrete aggregates, forroad
metalling orforrailway orother
ballast, shingle andflint, whether
ornotheat-treated; macadam of
slag, dross orsimilar industrial
waste, whether ornotincorporating
thematerials cited inthefirstpart
oftheheading; tarred macadam;
granules, chippings andpowder, of
stones ofheading No.25.15 or
25.16, whether ornotheat-treated.Asindicated atthesubheading level.G/RO/18/Add.1
Page16HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2517.10 -Pebbles, gravel, broken orcrushed
stone, ofakind commonly used for
concrete aggregates, forroad
metalling orforrailway orother
ballast shingle andflint, whether or
notheattreated Thecountry of
origin ofthegoods shall bethe
country inwhich theminerals ofthis
subheading areobtained intheir
natural orunprocessed stateBasket 1
2517.20 -Macadam ofslag, dross orsimilar industrial
waste, whether ornotincorporating the
materials cited insubheading No.2517.10[CTSH]
[CTH]Basket 2
2517.30 -Tarred macadam CTSH Basket 1
-Granules, chippings andpowder, of
stones ofheading No.25.15 or
25.16, whether ornotheattreated
2517.41 --Ofmarble Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed state.Basket 1
2517.49 --Other Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed state.Basket 1
25.18 Dolomite, whether ornotcalcined;
dolomite roughly trimmed or
merely cut,bysawing orotherwise,
intoblocks orslabs ofarectangular
(including square) shape;
agglomerated dolomite (including
tarred dolomite).Asindicated atthesubheading level.G/RO/18/Add.1
Page17HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2518.10 -Dolomite notcalcined Thecountry oforigin ofthegoods shall be
thecountry inwhich thedolomite ofthis
subheading isobtained initsnatural or
unprocessed state.Basket 1
2518.20 -Calcined dolomite CTSH Basket 1
2518.30 Agglomerated dolomite (including
tarred dolomite)Asindicated atthesplitsubheading level.
ex2518.30 (a)
ex2518.30 (b)-Tarred dolomite
-OtherCTSHS
Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
splitsubheading areobtained intheir
natural orunprocessed state.Basket 1
Basket 1
25.19 Natural magnesium carbonate
(magnesite); fused magnesia;
dead-burned (sintered) magnesia,
whether ornotcontaining small
quantities ofother oxides added
before sintering; other magnesium
oxide, whether ornotpure.Asindicated atthesubheading level.
2519.10 -Natural magnesium carbonate
(magnesite)Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed state.Basket 1
2519.90 -Other Asindicated atthesplitsubheading level.
ex2519.90 (a)
ex2519.90 (b)--Calcined, fused orsintered
--OtherCTSHS
Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
splitsubheading areobtained intheir
natural orunprocessed state.Basket 1
Basket 1G/RO/18/Add.1
Page18HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
25.20 Gypsum; anhydrite; plasters
(consisting ofcalcined gypsum or
calcium sulphate) whether ornot
coloured, with orwithout small
quantities ofaccelerators or
retarders.Asindicated atthesubheading level
2520.10 -Gypsum; anhydrite. Thecountry oforigin ofthegoods shall be
thecountry inwhich thegypsum or
anhydrite ofthissubheading areobtained
intheir natural orunprocessed state.Basket 1
2520.20 -Plasters CTSH Basket 1
25.21 Limestone flux; limestone andother
calcareous stone, ofakind used for
themanufacture oflime orcement.Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
heading areobtained intheir natural or
unprocessed state.Basket 1
25.22 Quicklime, slaked lime and
hydraulic lime, other than calcium
oxide andhydroxide ofheading No.
28.25.Asindicated atthesubheading level.
2522.10 -Quicklime CTH Basket 1
2522.20 -Slaked lime CTSH Basket 1
2522.30 -Hydraulic lime CTH Basket 1
25.23 Portland cement, aluminous
cement, slagcement, supersulphate
cement andsimilar hydraulic
cements, whether ornotcoloured or
intheform ofclinkersAsindicated atthesubheading level.
2523.10 -Cement clinkers CTH Basket 1
-Portland cement:
2523.21 --White cement, whether ornot
artificially coloured[CTH]
[CTSH]Submitted toCRO fordecisionG/RO/18/Add.1
Page19HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2523.29 --Other [CTH]
[CTSH]Submitted toCRO fordecision
2523.30 -Aluminous cement [CTH]
[CTSH]Submitted toCRO fordecision
2523. 90 -Other hydraulic cements [CTH]
[CTSH]Submitted toCRO fordecision
25.24 Asbestos Thecountry oforigin ofthegoods shall be
thecountry inwhich theasbestos ofthis
heading isobtained initsnatural or
unprocessed state.Basket 1
25.25 Mica, including splittings; mica
waste.Asindicated atthesubheading level.
2525.10 -Crude mica andmica rifted into
sheets orsplittingsThecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed stateBasket 1
2525.20 -Mica powder Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed stateBasket 1
2525.30 -Mica waste Thecountry oforigin ofthegoods shall be
thecountry inwhich themica waste ofthis
subheading isderived.Basket 1
25.26 Natural steatite, whether ornot
roughly trimmed ormerely cut,by
sawing orotherwise, intoblocks or
slabs ofarectangular (including
square) shape; talc.Asindicated atthesubheading level.
2526.10 -Notcrushed, notpowdered Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed stateBasket 1G/RO/18/Add.1
Page20HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2526.20 -Crushed orpowdered [CTSH]
[The country oforigin ofthegoods shall
bethecountry inwhich theminerals of
thissubheading areobtained intheir
natural orunprocessed state]Submitted toCRO fordecision
25.27 Natural cryolite; natural chiolite Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
heading areobtained intheir natural or
unprocessed stateBasket 1
25.28 Natural borates andconcentrates
thereof (whether ornotcalcined),
butnotincluding borates separated
from natural brine; natural boric
acidcontaining notmore than 85%
ofH3BO3calculated onthedry
weight.Asindicated atthesplitheading level.
ex25.28 (a)
ex25.28 (b)-Calcined
-OtherCTHS
Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
splitheading areobtained intheir natural
orunprocessed stateBasket 1
Basket 1
2528.10 -Natural sodium borates and
concentrates thereof (whether ornot
calcined)Asindicated atthesplitheading level.
2528.90 -Other
25.29 Felspar; leucite; nepheline and
nepheline syenite; fluorsparThecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
heading areobtained intheir natural or
unprocessed stateBasket 1G/RO/18/Add.1
Page21HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2529.10
2529.21
2529.22
2529.30-Felspar
-Fluorspar:
--Containing byweight 97% orless
ofcalcium fluoride
--Containing byweight more than
97% ofcalcium fluoride
-Leucite; nepheline andnepheline
syeniteAsindicated attheheading level.
25.30 Mineral substances notelsewhere
specified orincluded.Asindicated atthesplitheading level.
ex25.30 (a) -Calcined CTHS Basket 1
ex25.30 (b) -Molybdenite concentrates [CTH]
[CTH, except from concentrates of
heading 26.13]Submitted toCRO fordecision
ex25.30 (c) -Other Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals thissplit
heading areobtained intheir natural or
unprocessed stateBasket 1
2530.10
2530.20
2530.40
2530.90-Vermiculite, perlite andchlorites,
unexpanded
-Kieserite, epsomite (natural
magnesium sulphates)
-Natural micaceous ironoxides
-OtherAsindicated atthesplitheading level.G/RO/18/Add.1
Page22CHAPTER 26
Notes
[Chapter Residual Rule:
1.When goods ofthisChapter which comprise asingle commercial product andconsist ofamixture ofmaterials ofthesame heading orsubheading, are
notwholly obtained inasingle country inaccordance withAppendix 1andapplication oftheproduct specific rules ofthisAppendix donotresult ina
determination ofasingle country oforigin, thecountry oforigin shallbethecountry fromwhich thematerials (taken together) thatpredominate byweight
overallother materials (taken together) obtained from anyother single country. (US)] Basket 2
HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 26 Ores, Slag andAsh
26.01 -26.17 Seeindividual headings and
subheadings setoutbelow.Asindicated atthesplitheading level.
ex26.01 (a)to
ex26.17 (a)-Concentrated bycalcining orroasting [CTHS]
[The country oforigin ofthegoods shall
bethecountry inwhich themetal oresare
obtained intheir natural orunprocessed
state]Submitted toCRO fordecision
ex26.01 (b)to
ex26.17 (b)-Concentrated otherwise [CTHS] Submitted toCRO fordecision
[The country oforigin ofthegoods shall
bethecountry inwhich themetal oresare
obtained intheir natural orunprocessed
state]G/RO/18/Add.1
Page23HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex26.01 (c)to
ex26.17 (c)-Other Thecountry oforigin ofthegoods shall
bethecountry inwhich themetal oresare
obtained intheir natural orunprocessed
state.Basket 1
26.01 Iron oresandconcentrates,
including roasted ironpyritesAsindicated atthesplitheading level.
-Iron oresandconcentrates, other than
roasted ironpyrites:
2601.11 --Non-agglomerated
2601.12 --Agglomerated
2601.20 -Roasted ironpyrites
26.02 Manganese oresandconcentrates,
including manganiferous ironores
andconcentrates with amanganese
content of20% ormore, calculated
onthedryweight
26.03 Copper oresandconcentrates
26.04 Nickel oresandconcentrates
26.05 Cobalt oresandconcentrates
26.06 Aluminium oresandconcentrates
26.07 Lead oresandconcentrates
26.08 Zinc oresandconcentrates
26.09 Tinoresandconcentrates
26.10 Chromium oresandconcentrates
26.11 Tungsten oresandconcentrates
26.12 Uranium orthorium oresand
concentrates
2612.10 Uranium oresandconcentrates
2612.20 Thorium oresandconcentrates
26.13 Molybdenum oresandconcentratesG/RO/18/Add.1
Page24HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2613.20 -Roasted Asindicated atthesplitheading level
2613.90 -Other
26.14 Titanium oresandconcentrates
26.15 Niobium, tantalum, vanadium or
zirconium oresandconcentrates
2615.10 -Zirconium oresandconcentrates
261590 -Other
26.16 Precious metal oresandconcentrates
2616.10 -Silver oresandconcentrates
2616.90 -Other
26.17 Other oresandconcentrates
2617.10 -Antimony oresandconcentrates
2617.90 -Other
26.18 Granulated slag(slag sand) from the
manufacture ofironorsteel.Thecountry oforigin ofthegoods shall
bethecountry inwhich theslags ofthis
heading arederived.Basket 1
26.19 Slag, dross (other than granulated
slag), scalings andother waste from
themanufacture ofironorsteel.Thecountry oforigin ofthegoods shall
bethecountry inwhich theslags, dross,
scalings orother waste ofthisheading are
derived.Basket 1
26.20 Ashandresidues (other than from
themanufacture ofironorsteel),
containing metals ormetal
compounds.Thecountry oforigin ofthegoods shall
bethecountry inwhich theashor
residues ofthisheading arederived.Basket 1
-Containing mainly zinc: Asindicated attheheading level.
2620.11 --Hard zincspelter
2620.19 --Other
2620.20 -Containing mainly lead
2620.30 -Containing mainly copperG/RO/18/Add.1
Page25HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2620.40 -Containing mainly aluminium
2620.50 -Containing mainly vanadium
2620.90 -Other
26.21 Other slagandash,including
seaweed ash(kelp).Thecountry oforigin ofthegoods shall
bethecountry inwhich theslagorashof
thisheading isderived.Basket 1G/RO/18/Add.1
Page26
CHAPTER 27
Chapter Notes :
(a) [Forpurposes ofthisChapter, a"chemical reaction" means aprocess inwhich chemical bonds
inmolecules arebroken andnewchemical bonds areformed between thefragmented molecules and/or
added elements sothatoneormore oftheoriginal bonds nolonger linkthesame chemical elements
orfunctional groups. (CAN) (JPN) (SG)] Basket 2
(b) [Chapter Legal Notes*:
1. Forthepurposes ofthisChapter, whenever theproduct specific rulesprovided forinthisAnnex
refertothisNote, thecovered goods shalloriginate inthecountry from which themineral orgood
wasextracted orotherwise obtained initsnatural orunprocessed state.
2. A"chemical reaction" isaprocess (including biochemical process) inwhich intramolecular
bonds (covalent, ionic, coordinate, metallic) arebroken andnewchemical bonds areformed, orin
which thespatial arrangement ofatoms inthemolecule isaltered.
Thefollowing arenotconsidered tobechemical reactions forthepurposes ofthisnote:
- Theelimination oraddition ofsolvents orofwater ofcrystallization.
- Theforming orbreaking ofintermolecular forces.
3. Goods ofanyheading orsubheading ofChapter 27(other thanheading 27.09) thathavebeen
obtained asaresult ofachemical reaction, including refinery processes suchascracking, catalytic
reforming, desulfurization (removal ofbound sulphur) ordehydroalkylation, aredeemed tobegoods
ofthecountry where thereaction occurred.
4. Goods ofheadings 27.07 or27.10 thathavebeenblended toconform tospecific predetermined
physical specifications, suchasboiling point range, viscosity, solidification temperature, research or
motor octane number, orcetane number, which aredifferent from thespecifications oftheinput
materials, aredeemed tobegoods ofthecountry where theblending occurred, provided that:
(i) Inthecaseofmotor fuels(other thandiesel fuels), thegood hasaResearch Octane Number
(RON) of6ormore unitshigher thanthatoftheblending component thatbyvolume constitutes the
single largest blending component obtained from asingle country; or
(ii) Inthecaseofother goods, notmore than70percent byvolume oftheproduct iscomposed
ofblending components originating fromacountry otherthanthecountry where theblending occurred.
5. Goods ofheading 27.10 thathavebeenobtained asresult ofvacuum distillation orsolvent
extractionprocesses,originateinthecountrywherethevacuumdistillationorsolventextractionoccurred.G/RO/18/Add.1
Page27
Chapter Residual Rules*:
WhengoodsofthisChapterwhichcompriseasinglecommercialproductandconsistofamixture
ofmaterials ofthesameheading orsubheading, arenotwholly obtained inasingle country inaccordance
withAppendix 1andapplication oftheproduct specific rules ofthisAppendix donotresult ina
determination ofthecountry oforigin, thecountry oforigin, shallbethecountry from which the
materials (taken together) thatpredominate byweight overallother materials (taken together) obtained
from anyother single country.
*Both theChapter Legal Notes andResidual Rules contain “rulesoforigin ”.They havebeen
presented inthismanner because ofgeneral applicability orforother purposes. Inourview, such
rules cannot beintegrated conveniently within this“matrix ”format, yetmust beprovided insome
manner soastoexhaust allthepossible origin considerations. Weinvite theCommittee toexplore
thissituation aspartofitsongoing review oftheorigin rules architecture. (US)] Basket 2
(c) [Chapter Notes
1. Forthepurposes ofheadings 2707and2710to2713, the"specific processes" arethefollowing:
(a) vacuum distillation;
(b) redistillation byaverythorough fractionation process;
(c) cracking;
(d) reforming;
(e) extraction bymeans ofselective solvents;
(f) theprocess comprising allthefollowing operations: processing withconcentrated
sulphuric acid, oleum orsulphuric anhydride; neutralization withalkaline agents;
decolorization andpurification withnaturally active earth, activated earth, activated
charcoal orbauxite;
(g) polymerization;
(h) alkylation;
(i) isomerization;
(j) inrespect ofheavy oilsfalling within heading ex2710 only, desulphurization with
hydrogen resulting inareduction ofatleast85%ofthesulphur content oftheproducts
processed (ASTM D1266-59 Tmethod);
(k) deparaffining byaprocess other thanfiltering, inrespect ofproducts falling within
heading 2710 only;
(l) inrespect ofheavy oilsfalling within heading ex2710, treatment withhydrogen at
apressure ofmore than20barandatemperature ofmore than250Cwiththeuse
ofacatalyst, other thantoeffect desulphurization, when thehydrogen constitutes an
active element inachemical reaction. Thefurther treatment with hydrogen of
lubricating oilsofheading ex2710 (e.g.hydrofinishing ordecolorization) inorder,G/RO/18/Add.1
Page28
more especially, toimprove colour orstability shallnot,however, bedeemed tobe
aspecific process;
(m) inrespect offulloilsfalling within heading ex2710, atmospheric distillation, on
condition thatlessthan30%ofthese products distils, byvolume, including losses,
at300oCbytheASTM D86method;
(n) inrespect ofheavy oilsother thangasoilsandfueloilsfalling within heading ex2710
onlytreatment bymeans ofahigh-frequency electrical brush-discharge.
2. Mixing andblending:
Forthepurposesofheadings2707and2710to2715,thedeliberateandproportionallycontrolled
mixing orblending ofmaterials, which results intheproduction ofagood having physical, chemical
ortechnical characteristics different fromthose oftheindividual constituents isconsidered tobeorigin
conferring.
3. Listofsimple processes which donotconfer origin:
-cleaning
-decantation
-desalination
-water separation
-filtering
-colouring
-marking
-obtaining asulphur content asaresult ofmixing products withdifferent sulphur contents
-anycombination ofthese operations. (EC) Basket 2G/RO/18/Add.1
Page29HSCode
NumberDescription ofgoods Origin Criteria Notes Comments
A B C D E
Chapter 27 Mineral fuels, mineral oilsand
products oftheir distillation;
Bituminous substances; Mineral
waxes.
27.01 Coal; briquettes, ovoids andsimilar
solid fuels manufactured from coal.Asindicated atthesubheading level.
Coal, whether ornotpulverized, but
notagglomerated:
2701.11 --Anthracite Thecountry oforigin ofthegoods shall be
thecountry inwhich theanthracite ofthis
subheading isobtained initsnatural or
unprocessed state.Basket 1
2701.12 --Bituminous coal Thecountry oforigin ofthegoods shall be
thecountry inwhich thebituminous coalof
thissubheading isobtained initsnatural or
unprocessed state.Basket 1
2701.19 --Other coal Thecountry oforigin ofthegoods shall be
thecountry inwhich thecoalofthis
subheading isobtained initsnatural or
unprocessed state.Basket 1
2701.20 -Briquettes, ovoids andsimilar solid
fuels manufactured from coal[The country oforigin ofthegoods shall be
thecountry inwhich thebriquettes, ovoids
orsimilar solid fuels ofthissubheading are
obtained intheir natural orunprocessed
state.]Submitted toCRO fordecision
[CTSH]
27.02 Lignite, whether ornot
agglomerated, excluding jet.Thecountry oforigin ofthegoods shall be
thecountry inwhich thelignite thisheading
isobtained initsnatural orunprocessed
state.Basket 1
2702.10 -Lignite, whether ornotpulverized,
butnotagglomeratedAsindicated attheheading level.G/RO/18/Add.1
Page30HSCode
NumberDescription ofgoods Origin Criteria Notes Comments
A B C D E
2702.20 -Agglomerated lignite
27.03 Peat (including peat litter), whether
ornotagglomerated.Thecountry oforigin ofthegoods shall be
thecountry inwhich thepeatofthis
heading isobtained initsnatural or
unprocessed state.Basket 1
27.04 Coke andsemi-coke ofcoal, of
lignite orofpeat, whether ornot
agglomerated; retort carbon.CTH Basket 1
27.05 Coal gas,water gas,producer gas
andsimilar gases, other than
petroleum gases andother gaseous
hydrocarbons.CTH Basket 1
27.06 Tardistilled from coal, from lignite
orfrom peat, andother mineral
tars, whether ornotdehydrated or
partially distilled, including
reconstituted tars.CTH Basket 1G/RO/18/Add.1
Page31H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
27.07 Oilsandother products ofthedistillation of
hightemperature coaltar;similar products in
which theweight ofthearomatic constituents
exceeds thatofthenon-aromatic constituents.(a)CTH Basket 2
(b)CTH, or
CTSH, provided thechange results from achemical
reaction. (NZ) (JPN) (CAN) (US)Change ofsubheading within theheading by
achemical reaction isdeemed tobea
substantial transformation. Refining
operations and/or oneormore specific
processes such asvacuum distillation,
cracking, reforming, etc., canbeconsidered
assubstantial transformations. (NZ)
Change ofsubheading within thisheading
byachemical reaction isdeemed tobea
substantial transformation. (JPN)
(c)CTH; or
change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)Refining operations and/or oneormore
specific processes such asvacuum
distillation, cracking, reforming, etc., can
beconsidered assubstantial transformations.
Mixing processes canbeconsidered as
substantial transformation iftheyfulfil
certain conditions, relating tothespecific
qualities oftheresulting products andthe
equipment ofplants. (EC)
(d)Goods ofthisheading thatarenotwholly the
product ofonecountry shallbedeemed tooriginate in
thelastcountry where oneofthefollowing occurs:
(i)non-originating materials undergo achange of
classification tosubheadings ofthisheading from any
other subheading ,or
(ii)thegoods havebeenobtained asaresult ofa
chemical reaction ,including refinery processes suchas
cracking (including catalytic cracking, hydrocracking,
thermal cracking, coking andvisbreaking), catalytic
reforming, desulphurisation (removal ofbound sulphur)
alkylation (including dehydroalkylation and
hydroalkylation) andhydrogenation; orSubstantial transformation results from
chemical reaction. Petroleum processes that
cause chemical reactions alter themolecular
structure ofcomplex hydrocarbon
compounds andfrom different compounds.
Thecompounds thatareformed aresuitable
fordifferent usesandapplications compared
totheoriginal compounds. (SG)G/RO/18/Add.1
Page32H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(iii)thegoods havebeenobtained asaresult of
physical separation processes suchasvacuum
distillation orsolvent extraction processes; orSubstantial transformation results from
physical separation processes such as
vacuum distillation andsolvent extraction.
Theprocesses isolate light endhydrocarbons
from complex hydrocarbons. (SG)
(iv)thegoods havebeenobtained byblendin gto
conform tospecific predetermined physical
specifications ,suchasboiling point range, viscosity,
solidification temperature, research ormotor octane
numbers, cetane number, vapour pressure, smoke
point, freeze point, volatility, ordensity, which are
different from thespecifications oftheinput materials;
orBlending toconform tospecific
predetermined specifications issubstantial
transformation. Thefinished products have
acquired different properties and
specifications notpresent intheinputs used.
Toattain specific predetermined
specifications soastorender thefinished
product certain properties such asprotection
from wear andcorrosion, useover wide
temperature range, etc. precise formulation
andblending under acontrolled environment
arerequired. (SG)
(v)theCIFvalue ofnon-originating materials
imported andusedintheproduction doesnotexceed
75%oftheex-factory price ofthegoods. The
method ofcalculating foreign content isasfollows :
FC= CIFvalue ofNORM x100% <75%
Ex-Factory Price
where
FC:foreign content
NORM: non-originating rawmaterials
Ex-Factory Price: =Total materials cost+Direct
labour costs +Overheads costs +Profits. (SG)Duetoon-going technological
developments, itisnotpossible todefine an
exhaustive range ofsubstantial blending
processes. Blending processes involving
proprietary formulation should alsobe
recognized assubstantial. Analternative
value-added rulewillallow forexpression of
substantial transformation thatisintandem
withtechnological changes. Amaximum
level of75% foreign content isdeemed
adequate. (SG)
2707.10
2707.20-Benzole
-ToluoleAsindicated attheheading level.G/RO/18/Add.1
Page33H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2707.30
2707.40
2707.50
2707.60
2707.91
2707.99-Xylole
-Naphthalene
Other aromatic hydrocarbon mixtures ofwhich
65%ormore byvolume (including losses)
distils at250oCbytheASTM D86method
-Phenols
-Other
--Creosote oils
--OtherAsindicated attheheading level.
27.08 Pitch andpitch coke, obtained from
coaltarorfrom other mineral tars.Asindicated atthesubheading level.
2708.10 -Pitch CTH Basket 1
2708.20 -Pitch coke [CTH]
[CTSH]Submitted toCRO fordecision
27.09 Petroleum oilsandoilsobtained
from bituminous minerals, crude.Asindicated atthesplitheading level.
ex27.09 (a)
ex27.09 (b)Petroleum oils,crude
OtherThecountry oforigin ofthegoods shall be
thecountry inwhich thecrude petroleum
oilsofthissplitheading areobtained in
their natural orunprocessed state.
CTHBasket 1
Basket 1
27.10 Petroleum oilsandoilsobtained from
bituminous minerals, other thancrude;
preparations notelsewhere specified or
included, containing byweight 70%ormore
ofpetroleum oilsorofoilsobtained from
bituminous minerals, these oilsbeing thebasic
constituents ofthepreparations.(a)CTH; or
Change within thisheading, provided thechange
results from achemical reaction. (JPN) (CAN)Basket 2
Change within thisheading byachemical reaction is
deemed tobeasubstantial transformation. (JPN)
(b)CTHG/RO/18/Add.1
Page34H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(c)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming etc,canbeconsidered substantial
transformations. Mixing processes canbeconsidered as
substantial transformation iftheyfulfil certain
conditions, relating tothespecific qualities ofthe
resulting products andtheequipment ofplants. (EC)
(d)CTH, except from headings 27.10 to27.15. (COL)
(e)CTH ;or
Chang within thisheading, provided thattheother
good ofheading 27.10 undergoes achemical reaction;
and
Goods thathavebeenformulated byblending (NZ)Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming, etc.,canbeconsidered substantial
transformations.
Toreflect substantial transformation resulting from
blending. (NZ)
(f)Goods ofthisheading thatarenotwholly the
product ofonecountry shallbedeemed tooriginate in
thelastcountry where oneofthefollowing occurs:
i)non-originating materials undergo achange of
classification tothisheading from anyother heading;
or
ii)thegoods havebeenobtained asaresult ofa
chemical reaction, including refinery processes suchas
cracking (including catalytic cracking, hydrocracking,
thermal cracking, coking andvisbreaking), catalytic
reforming, desulphurisation (removal ofbound sulphur)
alkylation (including dehydroalkylation and
hydroalkylation) andhydrogenation; or
iii)thegoods havebeen obtained asaresult of
physical separation processes suchasvacuum
distillation orsolvent extraction processes; orSubstantial transformation results from chemical
reaction .Petroleum processes thatcause chemical
reactions alterthemolecular structure ofcomplex
hydrocarbon compounds andfrom different compounds.
Thecompounds thatareformed aresuitable for
different usesandapplications compared totheoriginal
compounds. (SG)
Substantial transformation results from physical
separation processes suchasvacuum distillation and
solvent extraction. Theprocesses isolate lightend
hydrocarbons from complex hydrocarbons. (SG)G/RO/18/Add.1
Page35H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
iv)thegoods havebeenobtained byblending to
conform tospecific predetermined physical
specifications, suchasboiling point range, viscosity,
solidification temperature, research ormotor octane
numbers, cetane number, vapour pressure, smoke
point, freeze point, volatility, ordensity, which are
different from thespecifications oftheinput materials;
or
v)theCIFvalue ofnon-originating materials
imported andusedintheproduction doesnotexceed
75%oftheex-factory price ofthegoods. The
method ofcalculating foreign content isasfollows :
FC= CIFvalue ofNORM x100% <75%
Ex-Factory Price
where
FC:foreign content
NORM: non-originating rawmaterials
Ex-Factory Price: =Total materials cost+Direct
labour costs +Overheads costs +Profits. (SG)Blending toconform tospecific predetermined
specifications issubstantial transformation. The
finished products haveacquired different properties and
specifications notpresent intheinputs used. Toattain
specific predetermined specifications soastorender the
finished product certain properties suchasprotection
from wear andcorrosion, useoverwide temperature
range, etc.precise formulation andblending under a
controlled environment arerequired. (SG)
Duetoon-going technological developments, itisnot
possible todefine anexhaustive range ofsubstantial
blending processes. Blending processes involving
proprietary formulation should alsoberecognized as
substantial. Analternative value-added rulewillallow
forexpression ofsubstantial transformation thatisin
tandem withtechnological changes. Amaximum level
of75%foreign content isdeemed adequate. (SG)
(g)CTH; seeChapter Legal Notes, 3,4,and 5.(US)
27.11 Petroleum gases andother gaseous
hydrocarbons.(a)CTH Basket 2
(b)CTH, except from headings 27.10 to27.15. (COL)
(c)Proposals asindicated atthesubheading level.
(EC)Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming, etc.,canbeconsidered substantial
transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating
tothespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
(d)Goods ofthisheading thatarenotwholly the
product ofonecountry shallbedeemed tooriginate in
thelastcountry where oneofthefollowing occurs:G/RO/18/Add.1
Page36H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
i)non-originating materials undergo achange of
classification tothesubheadings from anyother
subheading; or
ii)thegoods havebeenobtained asaresult ofa
chemical reaction, including refinery processes suchas
cracking (including catalytic cracking, hydrocracking,
thermal cracking, coking andvisbreaking), catalytic
reforming, desulphurisation (removal ofbound sulphur)
alkylation (including dehydroalkylation and
hydroalkylation); orSubstantial transformation results from chemical
reaction. Petroleum processes thatcause chemical
reactions alterthemolecular structure ofcomplex
hydrocarbon compounds andform different compounds.
(SG)
iii)thegoods havebeenobtained asaresult of
physical separation processes suchasvacuum
distillation orsolvent extraction processes; or
iv) thegoods havebeenobtained from deliberate
separation intoindividual gases. (SG)Substantial transformation results from physical
separation processes suchasvacuum distillation and
solvent extraction. Theprocesses isolate lightend
hydrocarbons from complex hydrocarbons.
Separation ofgases intoindividual components is
substantial transformation. (SG)
- Liquefied :
2711.11 --Natural gas (a)CTSH, except from subheading 2711.21. (JPN) Natural gas,etc.isliquefied tosimply facilitate its
transportation andstorage byreducing itsvolume
significantly. Finally, itisusedinagaseous form.
Therefore, liquefaction andgasification donotchange
thecharacter andtheuseofthegasandthuscannot be
considered assubstantial transformation. (JPN)
(b)CTSH, except from subheading 2711.21 or
2711.29. (CAN) (PHI)
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)Chapter Legal Note 1(US)
(e)WO(EC)
(f)Proposals asindicated attheheading level.
2711.12 --Propane (a)CTSH, except from subheading 2711.29. (JPN) Change tothissubheading from subheading 2711.29
cannot beconsidered assubstantial transformation
because itresults from asimple operation. (JPN)
(b)CTSH, except from subheading 2711.21 or
2711.29. (CAN) (PHI)G/RO/18/Add.1
Page37H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)CTH; or
change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(e)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(f)Proposals asindicated attheheading level.
2711.13 --Butanes (a)CTSH, except from subheading 2711.29. (JPN) Change tothissubheading from subheading 2711.29
cannot beconsidered assubstantial transformation
because itresults from asimple operation. (JPN)
(b)CTSH, except from subheading 2711.21 or
2711.29. (CAN) (PHI)
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(e)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(f) Proposals asindicated attheheading level
2711.14 --Ethylene, propylene, butylene andbutadiene (a) CTSH, except from subheading 2711.29. (JPN) Change tothissubheading from subheading 2711.29
cannot beconsidered assubstantial transformation
because itresults from asimple operation. (JPN)
(b)CTSH. except from subheading 2711.21 or
2711.29. (CAN) (PHI)G/RO/18/Add.1
Page38H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(e)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(f) Proposals asindicated attheheading level.
2711.19 --Other (a)CTSH, except from subheading 2711.29. (JPN) Change tothissubheading from subheading 2711.29
cannot beconsidered assubstantial transformation
because itresults from asimple operation. (JPN)
(b)CTSH, except from subheading 2711.21 or
2711.29. (CAN) (PHI)
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following a
mixingoperation inaccordance withChapter Note 2
(EC)
(e)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(f)Proposals asindicated attheheading level.
-Ingaseous state:
2711.21 --Natural gas (a)WO; or
CTSH, except from subheading 2711.11. (JPN)Change tothissubheading from subheading 2711.11
cannot beconsidered assubstantial transformation,
because itresults from asimple operation. (JPN)G/RO/18/Add.1
Page39H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(b)CTSH, except from subheading 2711.11 to
2711.19. (CAN) (PHI)
(c)CTSH (NZ)
(d)Chapter Legal Note 1(US)
(e)WO(EC)
(f) Proposals asindicated attheheading.
2711.29 --Other (a)CTSH, except from subheadings 2711.12 to
2711.21. (JPN)Change tothissubheading from subheading 2711.12 -
2711.21 cannot beconsidered assubstantial
transformation, because itresults from asimple
operation. (JPN)
(b)CTSH, except from subheading 2711.11 to
2711.19. (CAN) (PHI)
(c)CTSH (NZ)
(d)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(e)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(f)Proposals asindicated attheheading level.
27.12
Petroleum jelly; paraffin wax,
micro-crystalline petroleum wax, slack wax,
ozokerite, lignite wax, peatwax, other
mineral waxes, andsimilar products obtained
bysynthesis orbyother processes, whether or
notcoloured.(a)CTH Basket 2
(b)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)G/RO/18/Add.1
Page40H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(c)CTH, except from headings 27.10 to27.15.
(COL)
(d)CTH; seeChapter Legal Note 1(US)
2712.10
2712.20
2712.90-Petroleum jelly
-Paraffin waxcontaining byweight lessthan
0.75% ofoil
-OtherProposals asindicated attheheading level.
27.13 Petroleum coke, petroleum bitumen andother
residues ofpetroleum oilsorofoilsobtained
from bituminous minerals.Proposals asindicated atthesubheading level.
- Petroleum coke:
2713.11 --Notcalcined [CTH]
[CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter note1.(EC)]Basket 2
2713.12 --Calcined [CTH]
[CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter note1.(EC)]Basket 2
2713.20 -Petroleum bitumen CTH]
[CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter note1.(EC)]Basket 2
2713.90 Other residues ofpetroleum oilsorofoils
obtained from bituminous minerals[CTH]
[CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter note1.(EC)]Basket 2
27.14 Bitumen andasphalt, natural;
bituminous oroilshale andtar
sands; asphaltites andasphaltic
rocks.Thecountry oforigin ofthegoods shall be
thecountry inwhich goods ofthisheading
areobtained intheir natural orunprocessed
state.Basket 1G/RO/18/Add.1
Page41H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2714.10
2714.90-Bituminous oroilshale andtarsands
-OtherAsindicated attheheading level.
27.15 Bituminous mixtures based onnatural
asphalt, onnatural bitumen, onpetroleum
bitumen, onmineral taroronmineral tar
pitch (forexample, bituminous mastics,
cut-backs).(a)CTH, except from subheadings 2713.20, 2714.10
or2714.90 (JPN) (CAN) (PHI)Basket 2
(b)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming, etc.,canbeconsidered substantial
transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating
tothespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
(c)CTH (US) Thepreparation ofmixtures containing bitumen, asphalt
andsimilar products constitutes asubstantial
transformation oftheinitial input materials intoother
goods having different physical andcommercial
utilization characteristics. Webelieve thatorigin
should beestablished inthecountry where thetaris
added andmixed. Alternatively, additional subheadings
could becreated under thisheading toprovide a
separate identity forsuchmixtures andthenapply a
change ofsubheading rule.(US)
(d)CTSH (NZ) Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming, etc.,canbeconsidered substantial
transformations.
Mixing processes canbeconsidered assubstantial
transformation. (NZ)
27.16 Electrical energy. (optional heading) Thecountry oforigin ofthegoods shall be
thecountry inwhich theelectrical energy of
thisheading isgenerated.Basket 1G/RO/18/Add.1
Page42
Terminology guide
Iftheruleispresented onheading level:
Forheading:
CTH - change tothisheading from anyother heading.
Forsplitheading:
CTH - change tothissplitheading from anyother heading (N.B. change from other splits
ofthisheading areexcluded).
CTHS - change tothissplitheading fromanyother heading orfromother splits ofthisheading.
Iftheruleispresented onsubheading level:
Forsubheading:
CTSH - change tothissubheading from anyother subheading.
Forsplitsubheading:
CTSH - change tothissplitsubheading fromanyother subheading (N.B. changes fromother
splits ofthissubheading excluded).
CTSHS - change tothissplitsubheading fromanyother subheading orfromother splits ofthis
subheading.G/RO/18/Add.1
Page43
WCO doc.41.612
UNRESOLVED ISSUES FOR DECISION BYTHE COMMITTEE ONRULES OFORIGIN
FOR CHAPTERS 41-43
Issue forDecision, No.1
1. Isthede-wooling ofsheep orlamb skins ofsubheadings 4102.21 and4102.29 asubstantial
transformation?
Differing views presented intherelevant Tehnical Committee discussion
Option A:
2. Removal ofwoolfromasheep orlambskinwithwoolonisasubstantial transformation process.
Theorigin ruleshould bebased onachange ofsubheading, namely, achange tosubheadings
4102.21 or4102.29 (skin without wool on)from subheading 4102.10 (skin withwool on).
3. De-wooling isacomplicated process. Itinvolved very specialized andlabour-intensive
operations, during which chemical agents areused. De-wooling enhances thequality andthe
value oftheskins. Askinafterde-wooling differs markedly from theinput skinthatbears
fleecy wool.
Option B:
4. Removal ofwool fromasheep orlamb skinwithwool onisnotasubstantial transformation
process. Theruleshould bebased onachange ofheading, namely, achange tosubheadings
4102.21 or4102.29 (skin without wool on)from anyother heading.
5. De-wooling isonlyoneofthemany preparatory operations done toprepare theskins for
subsequent tanning orfinishing. De-wooling dosenotchange theessential character ofthe
skin. Itmerely serves toclear upthesurface ofaskinforfurther processing. De-wooling
isbynomeans acomplicated operation although chemical agents areused. Theprocess does
notcallforanyhightechnique.
Relevant HScodenumber
6. Subheadings 4102.21 and4102.29 (Raw skinsofsheep orlambs (fresh, orsalted, dried, limed,
pickled orotherwise preserved, butnottanned, parchment-dressed orfurther prepared), whether
ornotwithwoolonorsplit, other thanthose excluded byNote1(c)tothisChapter:Without
wool on).
References
7. Report ofthe3rdSession (Doc. 39.870, Annexes D1andD2)
Report of8thSession (Doc. 41.211, Annexes L1andL2)
Reference document (Doc. 40.811, pages 10-11)
Reference document (Doc. 41.384, page4)
Reference document (Doc. 41.451, page2)
Issue forDecision, No.2G/RO/18/Add.1
Page44
8. Areliming andpickling ofdehaired sheep orlambs skins substantial transformation ?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
9. Achange ofsubheading from 4102.29 to4102.21 issufficient toexpress thesubstantial
transformation. Liming andpickling significantly change thecharacteristics ofhides andskins.
However, salting, drying orpreserving offresh hides andskins arenotsubstantial
transformation.
Option B:
10. Liming orpickling doesnotchange thecharacteristics ofsheep orlambs skins. Therefore,
achange ofsubheading to4102.21 except from4102.29, orachange ofsubheading to4102.29
except from 4102.21, orachange ofheading ruleshould beadopted.
Relevant HScodenumber
11. Subheadings 4102.21 and4102.29 (Raw skinsofsheep orlambs (fresh, orsalted, dried, limed,
pickled orotherwise preserved, butnottanned, parchment-dressed orfurther prepared), whether
ornotwithwoolonorsplit, other thanthose excluded byNote1(c)tothisChapter:- Without
wool on:-- pickled; other)
References
12. Report ofthe3rdSession (Doc. 39.870, Annexes D1andD2)
Report of8thSession (Doc. 41.211, Annexes L1andL2)
Reference document (Doc. 41.384, page4)
Reference document (Doc. 41.452, page1)
Issue forDecision, No.3
13. Isachange ofheading sufficient toexpress thesubstantial transformation ofthegoods assembled
from parts?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
14. Achange ofheading issufficient toexpress thesubstantial transformation ofarticles assembled
fromparts. Theorigin ruleshould bebased onachange totheheadings concerned (namely,
headings 42.01, 42.04, 42.05 and42.06) from anyother heading.
15. Since theleather goods under examination aremanufactured fromrawmaterials orproducts
including component partsclassified inanyother heading, achange ofheading should bean
adequate expression ofsubstantial transformation ofthegoods. Thisformulation wassimple,
user-friendly andeasytoimplement.
16. However, itisacknowledged thatasimple change ofheading rulewould notbesufficient in
allcircumstances toexpress theorigin ofgoods made fromcomponent partsbecause byvirtue
oftheGeneral RuleofInterpretation 2(a),component partsofagood presented unassembledG/RO/18/Add.1
Page45
ordisassembled maybeclassified inthesame heading astheassembled good. Tosolve this
problem, ageneral ruleshould bestructured.
OPTION B:
17. Achange ofheading isnotsufficient toexpress thesubstantial transformation ofarticles
assembled fromparts. Theorigin ruleshould bebased onachange totheheadings concerned
(namely, headings 42.01, 42.04, 42.05 and42.06) fromanyother heading, provided thegoods
areknittoshape orfullyassembled inonecountry.
18. Tooffset theeffect oftheGeneral RuleofInterpretation 2(a)which classifies aproduct and
itsparts presented asunassembled ordisassembled inthesame heading, thisruleshould be
readinconjunction withthefollowing proposed Chapter Legal Note: "Those ruleswhich refer
toachange ofheading orsubheading shallnotapply tochanges which result solely fromthe
application oftheGeneral RuleofInterpretation 2(a)".
Relevant HScodenumber
19. Headings 42,01 (Saddlery andharness foranyanimal (including traces, leads, kneepads,
muzzles, saddle cloths, saddle bags, dogcoats andthelike), ofanymaterial), 42.04 (Articles
ofleather orofcomposition leather, ofakindusedinmachinery ormechanical appliances
orforother technical uses), 42.05 (Other articles ofleather orofcomposition leather) and
42.06 (Articles ofgut(other thansilk-worm gut), ofgoldbeater 'sskin, ofbladders orof
tendons).
References
20. Report ofthe3rdSession (Doc. 39.870, Annexes D1andD2)
Report ofthe8thSession (Doc. 41.211, Annexes L1andL2)
Reference document (Doc. 39.861, Annex F/12)
Issue forDecision, No.4
21. Isitasubstantial transformation toassemble furskins frompieces, cuttings orotherunassembled
parts offurskins?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
22. Assembling ofpieces, cuttings orother unassembled parts offurskins intoalarge furskin is
asubstantial transformation. Theruleoforigin should bebased onachange tothesubheading
concerned (namely, subheading 4302.30) from anyother subheading.
OPTION B:
23. Assembling ofpieces, cuttings orother unassembled parts offurskins intoalarge furskin is
notasubstantial transformation. Theruleoforigin should bebased onachange tothe
subheading concerned (namely, subheading 4302.30) from anyother heading.G/RO/18/Add.1
Page46
Other considerations
24. TheTechnical Committee could broadly agree toadopting achange ofsubheading rulefor
subheading4302.30toexpressthattheassemblyoffurskinsfrompieces,cuttingsorunassembled
parts offurskins isorigin-conferring.
25. However onedelegation maintained itsproposal forachange ofheading rulesoastoseek
further instructions from itshome administration before itcould jointheconsensus.
Relevant HScodenumber
26. Subheading 4302.30 (Tanned ordressed furskins (including heads, tails,pawsandother pieces
orcuttings), unassembled, orassembled (without theaddition ofother materials) other than
those ofheading No.43.03: Whole skins andpieces orcuttings thereof, assembled)
References
27. Report ofthe3rdSession (Doc. 39.870, Annexes D1andD2)
Report ofthe8thSession (Doc. 41.211, Annexes L1andL2)
Reference document (Doc. 41.424, page38)G/RO/18/Add.1
Page47
ANNEX TOWCO DOC. 41.612
Rules oforigin relating tounresolved issues submitted bytheTechnical Committee onRules ofOrigin
fordecision bytheCommittee onRules ofOrigin;
Agreed rulesoforigin submitted bytheTechnical Committee onRules ofOrigin forendorsement by
theCommittee onRules ofOrigin -designated as"Basket 1";
RulesoforiginretainedbytheTechnicalCommitteeonRulesofOriginforfurtherdiscussion;designated
as"Basket 2"andprinted insmall lettering.G/RO/18/Add.1
Page48CHAPTER 41
Notes:
HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 41 Raw hides andskins (other than
furskins) andleather
41.01 Raw hides andskins ofbovine or
equine animals (fresh, orsalted, dried,
limed, pickled orotherwise preserved,
butnottanned, parchment-dressed or
further prepared), whether ornot
dehaired orsplit.CTH Basket 1
4101.10 -Whole hides andskins ofbovine
animals, ofaweight perskinnot
exceeding 8kgwhen simply dried, 10kg
when dry-salted or14kgwhen fresh,
wet-salted orotherwise preservedAsindicated attheheading level.
-Other hides andskins ofbovine
animals, fresh orwet-salted:
4101.21 --Whole
4101.22 --Butts andbends
4101.29 --Other
4101.30 -Other hides andskins ofbovine
animals, otherwise preserved
4101.40 -Hides andskins ofequine animals
41.02 Raw skins ofsheep orlambs (fresh, or
salted, dried, limed, pickled or
otherwise preserved, butnottanned,
parchment-dressed orfurther
prepared), whether ornotwith wool on
orsplit, other than those excluded by
Note 1(c)tothisChapter.Asindicated atthesubheading level.G/RO/18/Add.1
Page49HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
4102.10 -With wool on CTH Basket 1
-Without wool on
4102.21 --Pickled [CTH]
[CTSH]Submitted toCRO fordecision
[CTSH, except from subheading
4102.29]
4102.29 --Other [CTH]
[CTSH]Submitted toCRO fordecision
[CTSH, except from subheading
4102.21]
41.03 Other rawhides andskins (fresh, or
salted, dried, limed, pickled or
otherwise preserved, butnottanned,
parchment-dressed orfurther
prepared), whether ornotdehaired or
split, other than those excluded byNote
1(b)or1(c)tothisChapter.CTH Basket 1
4103.10 -Ofgoats orkids Asindicated attheheading level.
4103.20 -Ofreptiles
4103.90 -Other
41.04 Leather ofbovine orequine animals, without hair
on,other thanleather ofheading No.41.08 or
41.09.Asindicated atthesplitheading level.
4104.10 -Whole bovine skinleather, ofaunitsurface area
notexceeding 28square feet(2.6m2)
-Other bovine leather andequine leather, tanned or
retanned butnotfurther prepared, whether ornot
split:
4104.21 --Bovine leather, vegetable pre-tanned
4104.22 --Bovine leather, otherwise pre-tanned
4104.29 --OtherG/RO/18/Add.1
Page50HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
-Other bovine leather andequine leather,
parchment-dressed orprepared aftertanning:
4104.31 --Fullgrains andfullgrain splits
4104.39 --OtherG/RO/18/Add.1
Page51HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex41.04(a) -[Provisionally prepared withtanning agent] CTH, except from heading 41.01 Basket 2
ex41.04(b) -[Tanned] [CTH]
[CTH, except from heading 41.01][Forpurposes ofthisAppendix, tanned
leather includes chrome tanned (wetblue)
orvegetable tanned leather.]Basket 2
ex41.04(c) -[Retanned] [CTH]
[CTHS]
[CTH, except from heading 41.01]Basket 2
ex41.04(d) -[Finished] [CTH]
[CTHS]
[CTHS, except from splitheading ex41.04 (c)]
[Change within splitheading ex41.04(d)]Basket 2
ex41.04(e) -[Parchment dressed, whether ornotfurther
prepared][CTH]
[CTH, except from heading 41.01]
[CTHS, except from splitheading ex41.04 (b),
ex41.04(c) orex41.04(d)]Basket 2G/RO/18/Add.1
Page52HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
41.05 Sheep orlamb skinleather, without wool on,
other thanleather ofheading No._41.08 or
41.09.Asindicated atthesplitheading level.
Tanned orretanned butnotfurther prepared,
whether ornotsplit:
4105.11 --Vegetable pre-tanned
4105.12 --Otherwise pre-tanned
4105.19 --Other
4105.20 -Parchment-dressed orprepared aftertanningG/RO/18/Add.1
Page53HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex41.05(a) -[Provisionally prepared withtanning agent] CTH, except from heading 41.02 Basket 2
ex41.05(b) -[Tanned] [CTH]
[CTH, except from heading 41.02][Forpurposes ofthisAppendix, tanned
leather includes chrome tanned (wetblue)
orvegetable tanned leather.]Basket 2
ex41.05(c) -[Retanned] [CTH]
[CTHS]
[CTH, except from heading 41.02]Basket 2
ex41.05(d) -[Finished] [CTH]
[CTHS]
[CTHS, except from splitheading ex41.05 (c)]
[Change within splitheading ex41.05(d)]Basket 2
ex41.05(e) -[Parchment dressed, whether ornotfurther
prepared][CTH]
[CTH, except from heading 41.02]
[CTHS, except from splitheading ex41.05 (b),ex
41.05(c) orex41.05(d)]Basket 2G/RO/18/Add.1
Page54HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
41.06 Goat orkidskinleather, without hairon,other
thanleather ofheading No.41.08 or41.09.Asindicated atthesplitheading level.
- Tanned orretanned butnotfurther
prepared, whether ornotsplit:
4106.11 --Vegetable pre-tanned
4106.12 --Otherwise pre-tanned
4106.19 --Other
4106.20 - Parchment-dressed orprepared after
tanningG/RO/18/Add.1
Page55HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex41.06(a) -[Provisionally prepared withtanning agent] CTH, except from heading 41.03 Basket 2
ex41.06(b) -[Tanned] [CTH]
[CTH, except from heading 41.03][Forpurposes ofthisAppendix, tanned
leather includes chrome tanned (wetblue)
orvegetable tanned leather.]Basket 2
ex41.06(c) -[Retanned] [CTH]
[CTHS]
[CTH, except from heading 41.03]Basket 2
ex41.06(d) -[Finished] [CTH]
[CTHS]
[CTHS, except from splitheading ex41.06 (c)]
[Change within splitheading ex41.06(d)]Basket 2
ex41.06(e) -[Parchment dressed, whether ornotfurther
prepared][CTH]
[CTH, except from heading 41.03]
[CTHS, except from ex41.06(b), ex41.06(c) orex
41.06(d)]Basket 2G/RO/18/Add.1
Page56HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
41.07 Leather ofother animals, without hairon,other
thanleather ofheading No.41.08 or41.09.Asindicated atthesplitheading level.
4107.10 -Ofswine
-Ofreptiles :
4107.21 --Vegetable pre-tanned
4107.29 --Other
4107.90 - Ofother animalsG/RO/18/Add.1
Page57HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex41.07(a) -[Provisionally prepared withtanning agent] CTH, except from heading 41.03 Basket 2
ex41.07(b) -[Tanned] [CTH]
[CTH, except from heading 41.03][Forpurposes ofthisAppendix, tanned
leather includes chrome tanned (wetblue)
orvegetable tanned leather.]Basket 2
ex41.07(c) -[Retanned] [CTH]
[CTHS]
[CTH, except from heading 41.03]Basket 2
ex41.07(d) -[Finished] [CTH]
[CTHS]
[CTHS, except from splitheading ex41.07 (c)]
[Change within splitheading ex41.07(d)]Basket 2
ex41.07(e) -[Parchment dressed, whether ornotfurther
prepared][CTH]
[CTH, except from heading 41.03]
[CTHS, except from splitheading ex41.07(b), ex
41.07(c) orex41.07(d)]Basket 2G/RO/18/Add.1
Page58HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
41.08 Chamois (including combination
chamois) leather.CTH Basket 1
41.09 Patent leather andpatent laminated
leather; metallised leatherCTH Basket 1
41.10 Parings andother waste ofleather or
ofcomposition leather, notsuitable for
themanufacture ofleather articles;
leather dust, powder andflour.Thecountry oforigin ofthegood shall
bethecountry inwhich thegood ofthis
heading isderived.Basket 1
41.11 Composition leather with abasis of
leather orleather fibre, inslabs,
sheets orstrip, whether ornotinrolls.CTH Basket 1G/RO/18/Add.1
Page59
CHAPTER 42
Notes :
[1.Forthepurposes ofdetermining thecountry oforigin forgoods falling within thischapter that
arenotwholly obtained inonecountry, thefollowing individual processes, considered singly, shall
notaffect theorigin ofthegoods concerned, whether ornotsuchprocesses result inchanges of
classification:
(a) Working orfinishing oneormore edges byhemming, rolling, whipping orsimilar means or
byknotting fringe;
(b) Cutting fabrics, yarns orother materials; orseparating goods produced inthefinished state
bycutting along dividing threads orlines;
(c) Assembling orjoining goods bysewing, stitching orother means forconvenience ofshipment
orother temporary purposes;
(d) Finishing existing goods withfasteners, buttonholes, “patch”pockets, footstraps, collars, cuffs,
labels, trimmings orornamental elements (including nutnotlimited tolace, nonfunctional
stitching, beads, badges, tassels, pompons, fringe, appliqués orfeathers) orthelike;or
(e) Putting upgoods forretail saleorinsetsorensembles. (US)] (Basket 2)
[2. Forthepurposes ofthischapter, those ruleswhich refertoachange ofheading orsubheading
shallnotapply tochanges which result from disassembly. (US)] (Basket 2)
[3. Those ruleswhich refertoachange ofheading orsubheading shallnotapply tochanges which
result solely from theapplication ofGeneral RuleofInterpretation 2(a)withrespect tocollection of
partsthatarepresented asunassembled articles ofanother heading orsubheading. (US)] (Basket 2)
[4. Theterm“complete making-up ”means thatalltheoperations following cutting havetobe
performed.
However, making-up shallnotnecessarily beconsidered asincomplete where oneormore
finishing operations havenotbeencarried out.
Thefollowing isalistofexamples offinishing operations:
- fitting ofbuttons and/or other types offastenings;
- making ofbutton-holes;
- finishing offtheendsoftrouser legsandsleeves orthebottom hemming ofskirts and
dresses;
- fitting oftrimmings andaccessories suchaspockets, labels, badges, etc.;
- ironing andother preparations ofgarments forsale“ready made”.(EC)] (Basket 2)G/RO/18/Add.1
Page60HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 42 Articles ofleather; saddlery and
harness; travel goods, handbags and
similar containers; articles ofanimal
gut(other than silk-worm gut).
42.01 Saddlery andharness foranyanimal
(including traces, leads, knees pads,
muzzles, saddle clothes, saddle bags,
dogcoats andthelike), ofany
material.[CTH]
[CTH, provided thegoods areknittoshape
orfully assembled inonecountry]Submitted toCRO fordecision
42.02 Trunks, suit-cases, vanity-cases, executive-cases,
brief-cases, school satchels, spectacle cases,
binocular cases, camera cases, musical
instrument cases, guncases, holsters andsimilar
containers; travelling-bags, toilet bags,
rucksacks, handbags, shopping-bags, wallets,
purses, map-cases, cigarette- cases,
tobacco-pouches, toolbags, sports bags,
bottle-cases, jewellery boxes, powder-boxes,
cutlery cases andsimilar containers, ofleather or
ofcomposition leather, ofsheeting ofplastics, of
textile materials, ofvulcanised fibre orof
paperboard, orwholly ormainly covered with
suchmaterials orwithpaper.[CTH]
[CTH, provided thegoods areknittoshape orfully
assembled inonecountry;
Additional Rule:
Goods ofthisheading which were wholly obtained
from acollection ofparts, which collection was
classifiable asanunassembled good byvirtue of
General Interpretative Rule2(a), aredeemed tohave
originated inthecountry where thegoods were wholly
assembled.]Basket 2.Final decision willbemade together with
therules fortextile articles ofother Chapters.
Trunks, suit-cases, vanity-cases, executive -cases,
brief-cases, school satchels andsimilar containers:Asindicated attheheading level
4202.11 --With outer surface ofleather, ofcomposition
leather orofpatent leather
4202.12 With outer surface ofplastics oroftextile materials Asindicated attheheading level
4202.19 --Other
-Handbags, whether ornotwithshoulder strap,
including those without handle:
4202.21 --With outer surface ofleather, ofcomposition
leather orofpatent leather
4202.22 --With outer surface ofplastic sheeting oroftextile
materials
4202.29 --OtherG/RO/18/Add.1
Page61HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
-Articles ofakindnormally carried inthepocket
orinthehandbag;
4202.31 --With outer surface ofleather, ofcomposition
leather orofpatent leather
4203.32 --With outer surface ofplastic sheeting oroftextile
materials
4202.39 --Other
-Other
4202.91 --With outer surface ofleather, ofcomposition
leather orofpatent leather
4202.92 --With outer surface ofplastic sheeting oroftextile
materials
4202.99 --Other
42.03 Articles ofapparel andclothing accessories, of
leather orofcomposition leather.[CTH]
[CTH, provided thegoods areknittoshape orfully
assembled inonecountry;
Additional Rule:
Goods ofthisheading which were wholly obtained
from acollection ofparts, which collection was
classifiable asanunassembled good byvirtue of
General Interpretative Rule2(a), aredeemed tohave
originated inthecountry where thegoods were wholly
assembled.]
Another option indicated atthesplitheading levelBasket 2.Final decision willbemade together with
therules fortextile articles ofother Chapters.
ex42.03(a) Articles ofapparel, ofleather orofcomposition
leather[Complete making-up] Basket 2.Final decision willbemade together with
therules fortextile articles ofother Chapters.
ex42.03(b) Other [CTH]
4203.10 -Articles ofapparel Asindicated attheheading orsplitheading level
-Gloves, mitten andmitts:
4203.21 --Specially designed foruseinsports
4203.29 --Other
4203.30 -Belts andbandoliers
4203.40 -Other clothing accessories Asindicated attheheading orsplitheading levelG/RO/18/Add.1
Page62HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
42.04 Articles ofleather orofcomposition
leather, ofakind used inmachinery or
mechanical appliances orforother
technical uses.[CTH]
[CTH, provided thegoods areknittoshape
orfully assembled inonecountry]Submitted toCRO fordecision
42.05 Other articles ofleather orof
composition leather.[CTH]
[CTH, provided thegoods areknittoshape
orfully assembled inonecountry]Submitted toCRO fordecision
42.06 Articles ofgut(other than silk-worm
gut), ofgoldbeater 'sskin, ofbladders
oroftendons.[CTH]
[CTH, provided thegoods areknittoshape
orfully assembled inonecountry]Submitted toCRO fordecision
4206.10 -Catgut Asindicated attheheading level
4206.90 -OtherG/RO/18/Add.1
Page63
CHAPTER 43
Notes:
[1. Forthepurposes ofdetermining thecountry oforigin forgoods falling within thischapter
thatarenotwholly obtained inonecountry, thefollowing individual processes, considered singly,
shallnotaffect theorigin ofthegoods concerned, whether ornotsuchprocesses result inchanges
ofclassification:
(a) Working orfinishing oneormore edges byhemming, rolling, whipping orsimilar means or
byknotting fringe;
(b) Cutting fabrics, yarns orother materials; orseparating goods produced inthefinished state
bycutting along dividing threads orlines;
(c) Assembling orjoining goods bysewing, stitching orother means forconvenience ofshipment
orother temporary purposes;
(d) Finishing existing goods withfasteners, buttonholes, “patch”pockets, footstraps, collars, cuffs,
labels, trimmings orornamental elements (including nutnotlimited tolace, nonfunctional
stitching, beads, badges, tassels, pompons, fringe, appliqués orfeathers) orthelike;or
(e) Putting upgoods forretail saleorinsetsorensembles. (US)] (Basket 2)
[2. Forthepurposes ofheadings 43.03 and43.04, those ruleswhich refertoachange ofheading
orsubheading shallnotapply tochanges which result from disassembly. (US)] (Basket 2)
[3. Those ruleswhich refertoachange ofheading orsubheading shallnotapply tochanges which
result solely from theapplication ofGeneral RuleofInterpretation 2(a)withrespect tocollection of
partsthatarepresented asunassembled articles ofanother heading orsubheading. (US)] (Basket 2)
[4. Theterm“complete making-up ”means thatalltheoperations following cutting havetobe
performed.
However, making-up shallnotnecessarily beconsidered asincomplete where oneormore
finishing operations havenotbeencarried out.
Thefollowing isalistofexamples offinishing operations:
- fitting ofbuttons and/or other types offastenings;
- making ofbutton-holes;
- finishing offtheendsoftrouser legsandsleeves orthebottom hemming ofskirts and
dresses;
- fitting oftrimmings andaccessories suchaspockets, labels, badges, etc.;
- ironing andother preparations ofgarments forsale“ready made”.(EC)] (Basket 2)G/RO/18/Add.1
Page64HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 43 Furskins andartificial fur;
manufactures thereof
43.01 Raw furskins (including heads, tails,
paws andother pieces orcuttings,
suitable forfurriers 'use), other than
rawhides andskins ofheading No.
41.01, 41.02 or41.03.CTH Basket 1
4301.10 -Ofmink, whole, withorwithout head,
tailorpawsAsindicated attheheading level
4301.20 -Ofrabbit orhare, whole, withor
without head tailorpaws
4301.30 -Oflamb, thefollowing: Astrakhan,
Broadtail, Caracul, Persian andsimilar
lamb, Indian, Chinese, Mongolian or
Tibetan lamb, whole, withorwithout
head, tailorpaws
4301.40 -Ofbeaver, whole, withorwithout head,
tailorpaws
4301.50 -Ofmusk-rat, whole, withorwithout,
tailorpaws
4301.60 -Offox,whole, withorwithout head,
tailorpaws
4301.70 -Ofseal, whole, withorwithout head,
tailorpaws
4301.80 -Other furskins, whole, withorwithout
head, tailorpaws
4301.90 -Heads, tails, paws andother pieces or
cuttings, suitable forfurriers ’useG/RO/18/Add.1
Page65HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
43.02 Tanned ordressed furskins (including
heads, tails, paws andother pieces or
cuttings), unassembled, orassembled
(without theaddition ofother materials)
other than those ofheading No.43.03.Asindicated atthesubheading
-Whole skins, withorwithout head, tail
orpaws, notassembled:
4302.11 --Ofmink CTH Basket 1
4302.12 --Ofrabbit CTH Basket 1
4302.13 --Oflamb, thefollowing: Astrakhan,
Broadtail, Caracul, Persian andsimile
lamb, Indian, Chinese, Mongolian or
Tibetan lambCTH Basket 1
4302.19 --Other CTH Basket 1
4302.20 -Heads, tails, paws andother pieces or
cuttings, notassembledCTH Basket 1
4302.30 -Whole skins andpieces orcuttings
thereof, assembled[CTH]
[CTSH]Submitted toCRO fordecision
43.03 Articles ofapparel, clothing accessories andother
articles offurskin.[CTH]
[CTH, provide thegoods arefullyassembled inone
country;
Additional Rule:
Goods ofthisheading which were wholly obtained
from acollection ofparts, which collection was
classifiable asanunassembled good byvirtue of
General Interpretative Rule2(a), aredeemed tohave
originated inthecountry where thegoods were
wholly assembled.]
Another option indicated atthesplitheading levelBasket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.03 (a) Articles ofapparel, offurskin [Complete making-up] Basket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.03 (b) Other [CTH]G/RO/18/Add.1
Page66HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
4303.10 -Articles ofapparel andclothing accessories Asindicated attheheading orsplitheading level
4303.90 -Other
43.04 Artificial furandarticles thereof [CTH]
Other options indicated atthesplitheading levelBasket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.04 (a) Articles ofartificial fur,apparel [CTH, provided thegoods arefullyassembled inone
country;
Additional Rule:
Goods ofthisheading which were wholly obtained
from acollection ofparts, which collection was
classifiable asanunassembled good byvirtue of
General Interpretative Rule2(a), aredeemed tohave
originated inthecountry where thegoods were
wholly assembled.]
[CTHS]
[Complete making-up]Basket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.04 (b) Articles ofartificial fur,other [CTH]
[CTH, provided thegoods arefullyassembled inone
country]Basket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.04 (c) Other [CTHS]
CTHBasket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.G/RO/18/Add.1
Page67
Terminology Guide
Iftheruleispresented onheading level:
Forheading:
CTH - change tothisheading from anyother heading
Forsplitheading:
CTH - change tothissplitheading from anyother heading (N.B. change from other splits
ofthisheading areexcluded.
CTHS - change tothissplitheading fromanyother heading orfromother splits ofthisheading.
Iftheruleispresented onsubheading level:
Forsubheading:
CTSH - change tothissubheading from anyother subheading.
Forsplitsubheading:
CTSH - change tothissplitsubheading fromanyother subheading (N.B. changes fromother
splits ofthissubheading excluded).
CTSHS - change tothissplitsubheading fromanyother subheading orfromother splits ofthis
subheading.G/RO/18/Add.1
Page68
WCO doc.41.610
UNRESOLVED ISSUES SUBMITTED FOR DECISION BYTHE COMMITTEE
CHAPTERS 91-WATCHES AND CLOCKS AND PARTS THEREOF
Issue forDecision No.1:
1. Isthecountry oforigin ofafinished watch orclock thecountry offinalassembly orthecountry
oforigin ofthemovement usedinitsproduction?
Differing views presented intherelevant Technical Committee discussions
Option A:aruleoforigin based ontheorigin ofthemovement forthefollowing reasons:
2. Theessence ofawatch, orclock, isadevice which indicates thetimeormeasures theintervals
oftime(seeexplanatory notes under heading 91.02 (and91.03)). Amovement isdefined in
theHSchapter notes asadevice capable ofdetermining intervals oftime(seeNote 3to
Chapter 91).There isnodifference intheessential character between awatch andamovement
anditisthemovement which imparts theessential character ofawatch.
Inthemanufacture ofawatch orclock, theassembly ofthemovement isconsidered thelast
substantial transformation because atthestage ofcompletion ofthemovement, theessential
character ofthewatch -time-telling -isalready fixed.
Thefinalassembly frommovement towatch doesnotsubstantially change theessential character
oftime-telling andcannot amount tosubstantial transformation.
Because theessential character andquality ofawatch oraclock isdetermined bythemovement,
theorigin ofthemovement ismost important from acommercial point ofview.
Option B:aruleoforigin based ontheassembly ofthewatch orclock, forthefollowing reasons:
3. Thestructure oftheHSreflects thatmovements andwatches areessentially different commercial
goods.
Various finished goods canbeobtained from thesame movement byfinalassembly.
While themovement isimportant, timekeeping isaminimum characteristic. Themovement
doesnotrepresent timeandisinvisible afterassembly.
Itisthechange from components toawatch which isthelastsubstantial transformation in
watch manufacture. Theaccuracy, durability andlifespanofawatch aredetermined and
guaranteed bythefinalassembly.
Some Members areoftheopinion thattesting andadjustment, which constitute anessential
partofassembly, arealsoofparticular importance because theydetermine theabove-mentioned
quality ofawatch.
Relevant HScodenumbers anddescriptions
4. 91.01 - Wrist-watches,pocket-watchesandotherwatches,includingstop-watches,with
caseofprecious metal orofmetal cladwithprecious metal;G/RO/18/Add.1
Page69
91.02 - Wrist-watches,pocket-watchesandotherwatches,includingstop-watches,other
thanthose ofheading 91.01;
91.03 - Clocks withwatch movements, excluding clocks ofheading 91.04;
91.04 - Instrument panel clocks andclocks ofasimilar typeforvehicles, aircraft,
spacecraft orvessels;
91.05 - Other clocks;
91.06 - Time ofdayrecording apparatus andapparatus formeasuring, recording or
otherwise indicating intervals oftime, withclock orwatch movement orwith
synchronous motor (forexample, time-registers, time-recorders);
91.07 - Time switches withclock orwatch movement orwithsynchronous motor.
Issue fordecision No.2
5. What istheappropriate description inex-91.10(b) ofcomplete movements, partly assembled
andofincomplete movements?
Differing views presented intherelevant Technical Committee discussions
Option A:
6. -movements ofex-91.10(b) must contain atleasttwoofthekeycomponents onacommon
support. Theproponents consider thatthespecification ofatleasttwoofthese components
issufficient totakeupanyoneofthethreetypes ofmovement: mechanical; analog electronic;
ordigital electronic.
Option B:
7. -allofthekeycomponents, asappropriate, must bepresent. Thisformulation isintended
toprovide amore clear delineation between thetypes ofmovements andcomponents.
Relevant HScodenumber anddescription
8. 91.10 - Complete watch orclock movements, unassembled orpartly assembled
(movement sets); incomplete watch orclock movements, partly assembled;
rough watch orclock movements.
Issue forDecision No.3
9. Arechanges tocomplete andassembled movements ofheadings 91.08 or91.09 from partly
assembled complete movements orincomplete movements ofex-91.10(b), orfrom other
movements ofex-91.10(c), substantial transformations?
Differing views presented intherelevant Technical Committee discussions
Option A:
10. -change totheseheadings fromanyother headings, thatis,from91.10 or91.14, isconsidered
substantial transformation byreason oftheassembly operations involved.
Option B:G/RO/18/Add.1
Page70
11. -change totheseheadings fromanyotherheadings, except thatchange fromex-91.10(b) should
beexcluded because suchgoods havealready acquired thecharacter ofmovements prior to
finalassembly andfinishing.
Option C:
12. -changes fromex-91.10(c) should beexcluded aswellaschanges from ex-91.10(b) because
goods ofex-91.10(c) havealready undergone some amount ofassembly which means thata
change tocomplete andassembled goods isnotsubstantial transformation.
Relevant HScodenumbers anddescriptions
13. 91.08 - Watch movements, complete andassembled;
91.09 - Clock movements, complete andassembled.
Issue forDecision No.4
14. Arechanges tofinished watch orclock cases fromcaseparts, ortowatch orclock cases from
caseblanks, substantial transformation?
Differing views presented intherelevant Technical Committee discussions
Option A:
15. -Change oftariff heading. Nochanges from subheadings forparts, orwithin subheadings
fromblanks tofinished goods, could reflect substantial transformation intheseheadings because
thewatch andclock cases areproduced fromasmall number ofparts, andusually oneprincipal
part, bybasic operations.
Option B:
16. -Change oftariffsubheading. Changes frompartstofinished goods oftheseheadings reflects
substantial transformation.
Option C:
17. -Change oftariff heading orchange within subheadings bythefinishing ofblanks. Changes
atthesubheading levelfromgoods classified aspartstofinished goods should notbesubstantial
transformation; butchanges within subheadings bytheworking, machining andpolishing of
blanks should beorigin-conferring.
Relevant HScodenumbers anddescriptions
18. 91.11 - Watch cases andparts thereof;
91.12 - Clock cases andcases ofasimilar typeforgoods ofthisChapter, andparts
thereof.
Issue forDecision No.5
19. Ischange tofinished straps, bands orbracelets frompartsclassified within 91.13, orchange
from blanks classified within 91.13, substantial transformation? Thisissue applies alsoto
theheading 91.14, butonlytothequestion ofblanks (mutatis mutandis), i.e.option Aand
B.G/RO/18/Add.1
Page71
Differing views presented intherelevant Technical Committee discussions
Option A:
20. -Change oftariffheading, indicating thatnochanges frompartsorfromblanks areconsidered
substantial transformation.
Option B:
21. -Change oftariffheading orchange fromblanks tofinished goods within thesamesubheadings
byworking, machining orpolishing.
Option C:
22. -Change oftariff heading orchange within subheadings from parts tofinished goods.
Relevant HScodenumber anddescription
23. 91.13 - Watch straps, watch bands andwatch bracelets, andparts thereof
91.14 - Other clock orwatch parts
Issue forDecision No.6
24. Isthemanufacture ofunassembled watch straps from fabric substantial transformation?
Differing views presented intherelevant Technical Committee discussions
Option A:
25. -theorigin ofunassembled straps andbands ofthissubheading should bebased onthecountry
oforigin ofthefabric; change tounassembled straps ofthissubheading from fabric isnot
substantial transformation asitrequires operations suchascutting, hemming andlooping.
Option B:
26. -change tounassembled goods ofthissubheading fromanyotherheading issufficient toexpress
substantial transformation.
Relevant HScodenumber anddescription
27. 9113.90 - Other
References toTechnical Committee documents
28. Report of4thSession (Doc. 40.245) Annex H/1.paragraphs 1-14
Report of5thSession (Doc. 40.510) Annex E/1
Draft Report of8thSession (Doc. 41.511) Annexes IJ/1andIJ/2
Secretariat ’sIssues ListforBasket 2(Doc. 41.221)
Working Document: Second Examination (Doc. 41.225)
Report oftheTokyo Intersessional Group (Doc. 41.209)G/RO/18/Add.1
Page72
Reference Document 41.236
Reference Document 41.218
Reference Document 41.208
Reference Document 41.416
Reference Document 41.433
Reference Document 41.507G/RO/18/Add.1
Page73
ANNEX TOWCO DOC. 41.610
Rules oforigin relating tounresolved issues submitted bytheTechnical Committee onRules ofOrigin
fordecision bytheCommittee onRules ofOrigin;
Agreed rulesoforigin submitted bytheTechnical Committee onRules ofOrigin forendorsement by
theCommittee onRules ofOrigin -designated as"Basket 1";
Rules oforigin retained bytheTechnical Committee onRules ofOrigin forfurther discussion -
designated as"Basket 2"andprinted insmall letteringG/RO/18/Add.1
Page74Chapter 91
Clocks andwatches andparts thereof
Note:
Disassembly operations, including those which result inachange oftariff classification, shallnotbeconsidered origin conferring.
HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
91.01 Wrist-watches, pocket-watches and
other watches, including stop-watches,
with caseofprecious metal orofmetal
cladwith precious metal.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.02 Wrist-watches, pocket-watches and
other watches, including stop-watches,
other than those ofheading No.91.01.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.03 Clocks with watch movements,
excluding clocks ofheading No.91.04.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.04 Instrument panel clocks andclocks ofa
similar type forvehicles aircraft,
spacecraft orvessels.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.05 Other clocks. [CTH ]
[CTH, except from heading 91.08 or
91.09Submitted totheCRO fordecision
91.06 Time ofdayrecording apparatus and
apparatus formeasuring, recording or
otherwise indicating intervals oftime,
with clock orwatch movement orwith
synchronous motor (forexample,
time-registers, time-recorders).[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecisionG/RO/18/Add.1
Page75HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
91.07 Time switches with clock orwatch
movement orwith synchronous motor.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.08 Watch movements, complete and
assembled.[CTH ]
[CTH, except from ex91.10 (b)]
[CTH, except from ex91.10 (b)or
ex91.10 (c)]Submitted totheCRO fordecision
91.09 Clock movements, complete and
assembled.[CTH ]
[CTH, except from ex91.10 (b)]
[CTH, except from ex91.10 (b)or
ex91.10 (c)]Submitted totheCRO fordecision
91.10 Complete watch orclock movements,
unassembled orpartly assembled
(movement sets); incomplete watch or
clock movements, assembled; rough
watch orclock movements.Asindicated forsplitheading
ex91.10 (a) Complete watch orclock movements,
unassembled; rough watch orclock
movementsCTH except from heading 91.14 Basket 1DecisionG/RO/18/Add.1
Page76HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex91.10 (b) [Complete watch orclock movements,
partly assembled andincomplete watch or
clock movements, assembled, containing
atleast twoofthefollowing components
onacommon support: timereference
device, device forconverting thetime
reference forpurposes ofdisplay, time
setting mechanism oropto-electronic
display ]
[Complete watch orclock movements,
partly assembled andincomplete watch or
clock movements, assembled, the
foregoing being movements forwhich all
ofthefollowing components, as
appropriate, areonacommon support:
timereference device, device for
converting thetimereference forpurposes
ofdisplay, timesetting mechanism or
opto-electronic display ]CTH ;or
Change from ex-91.10 (a), Submitted totheCRO fordecision
ex91.10 (c) Other CTH, except from heading 91.14 Basket 1Decision
91.11 Watch cases andparts thereof. Asspecified forsubheadings
9111.10 -Cases ofprecious metal orofmetal clad
withprecious metal[CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecision
9111.20 -Cases ofbasemetal, whether ornotgold-
orsilver-plated[CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecisionG/RO/18/Add.1
Page77HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
9111.80 -Other cases [CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecision
9111.90 -Parts CTH Basket 1Decision
91.12 Clock cases andcases ofasimilar type
forother goods ofthisChapter, and
parts thereof.Asspecified forsubheadings.
9112.10 -Cases ofmetal [CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecision
9112.80 -Other cases [CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecision
9112.90 -Parts CTH Basket 1Decision
91.13 Watch straps, watch bands andwatch
bracelets, andparts thereof.Asspecified forsubheadings.
9113.10 -Ofprecious metal orofmetal cladwith
precious metal[CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTH orchange from parts to
finished goods classified inthesame
subheading ]Submitted totheCRO fordecisionG/RO/18/Add.1
Page78HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
9113.20 -Ofbasemetal, whether ornotgold- or
silver-plated[CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTH orchange from parts to
finished goods classified inthesame
subheading ]Submitted totheCRO fordecision
9113.90 -Other Asindicated forsplitsubheading
ex9113.90 (a) Watch straps, bands, etc., assembled [CTH ]
[CTH, provided thegoods arefully
assembled inonecountry ]Submitted totheCRO fordecision
ex9113.90 (b) Watch straps, bands, etc., notassembled [CTH ]
[CTH, except from headings 50.07,
51.11 through 51.13, 52.08 through
52.12, 53.09 through 53.11, 54.07
through 54.08, 55.12 through 55.16,
56.03, 58.01 through 58.02, 58.06,
58.09, 59.03, 59.06 through 59.07,
60.01 through 60.02 andfrom
subheading 6307.90]Submitted totheCRO fordecision
91.14 Other clock orwatch parts. [CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheadings ]Submitted totheCRO fordecisionG/RO/18/Add.1
Page79
Terminology Guide
Iftheruleispresented onheading level:
Forheading:
CTH - change tothisheading from anyother heading.
Forsplitheading:
CTH - change tothissplitheading from anyother heading (N.B. change from other splits
ofthisheading areexcluded.
CTHS - change tothissplitheading fromanyother heading orfromothersplits ofthisheading.
Iftheruleispresented onsubheading level:
Forsubheading:
CTSH - change tothissubheading from anyother subheading.
Forsplitsubheading:
CTSH - change tothissplitsubheading fromanyother subheading (N.B. changes fromother
splits ofthissubheading excluded).
CTSHS - change tothissplitsubheading fromanyother subheading orfromother splits ofthis
subheading.