WORLD TRADE
ORGANIZATIONG/RO/37/Add.1
25 June 1999
(99-2598)
Committee on Rules of Origin
REPORT OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
TO THE COMMITTEE ON RULES OF ORIGIN ON
PROGRESS MADE AT ITS SEVENTEENTH SESSION
Note by the Secretariat
Addendum
As indicated in document G/RO/37 (see para. 1 of  the Progress Report of the Chairman of the
Technical Committee on Rules of Origin (TCRO)), the Report of the Seventeenth Session of the
TCRO (WCO doc. OC0030/2) is herewith circulated to Members.G/RO/37/Add.1
Page 2
WCO document OC0030/2
REPORT OF THE 17TH SESSION OF
THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
(from Monday 17 to Friday 28 May 1999)
1. The Technical Committee on Rules of Origin held its 17th Session from 17 to 28 May 1999 at
the Headquarters of the World Customs Organization in Brussels, under the chairmanship of
Mr. W.A. CLAYPOLE (Canada).
2. The following Members and Observers were represented :
Algeria  Hong Kong, China Philippines
Argentina Hungary Poland
Australia India Portugal
Azerbaijan Indonesia Russian FederationBangladesh Israel Saudi Arabia
Belgium Italy Senegal
Brazil Japan Slovakia
Bulgaria Jordan Slovenia
 Canada Korea (Rep. of) South AfricaChile Libyan Arab Jamahiriya Spain
China Liechtenstein Sudan
Colombia Luxembourg Sweden
Czech Republic Madagascar  Switzerland
Denmark Malaysia ThailandEgypt Mauritania Tunisia
Estonia Morocco Turkey
European Communities (EC) Netherlands Ukraine
Fiji New Zealand United Kingdom
Finland Norway United States
France Panama Uruguay
Germany Pakistan YemenGhana Paraguay
3. The following also attended the meeting with observer status:
- Secretariat of the World Trade Organization (WTO)
- United Nations Conference on Tr ade and Development (UNCTAD)
4. The list of participants is at Annex A to this Report.
5. The Chairman welcomed all delegates, and asked them to be prepared for a very full Agenda
which, in accordance with the plan drawn up by  the Committee and endorsed by he General Council
of the WTO, had to be finalized by the end of this session.
6. He invited delegates to fill out the attendance forms and, in particular, to indicate their e-mail
address and any other information that could facilitate communication with the other Members and
with the Secretariat.G/RO/37/Add.1
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I. ADOPTION OF THE AGENDA AND OF THE TIMETABLE
(a) Adoption of the Agenda
Doc. OC0017
7. Mr. M. F. Zielinski, Head of the Origin Proj ect, informed the Technical Committee that, since
the previous session, the Secretariat had received the following contributions:
Doc. Member Subject
OC0022 United States Residual Chapter rules for
Chapters 50 through 63 and for
the following headings and
subheadings :  3005.90, 42.02,
42.03, 43.03, 64.06, 65.01 through65.05, 66.01, 87.08, 88.04, 91.13,94.04, 9502.91 and 9612.10.
OC0024 Japan Substantial transformations not
covered by a change of tariffclassification.
OC0027 Brazil Chapters 84-90
8. He also informed the Technical Committee that, during the intersession, the Secretariat had
updated the Technical Committee’s Consolidated Text.  The corresponding amending supplement
would be distributed to Members during the meeting.
9. In addition, and according to the Technical Committee’s wishes, the Secretariat had prepared
draft templates on all the issues to be examined.
10. The Technical Committee took note and adopted the Agenda reproduced at Annex B, which
also constitutes the Table of Contents of this Report.
(b) Adoption of the timetable11. The Technical Committee decided to devote the first week of the session to an examination of
the outstanding issues in Chapters 50 to 63 and 82 to 90.  The second week would, as agreed, be
devoted to an examination of the outstanding issues in Chapters 1 to 24 and 91 to 97.  Given the
importance of the issues relating to the overall ar chitecture of the Rules, the Technical Committee
decided to examine those issues throughout the session.  Issues left pending during the first week
would be re-examined during the second week.
12. The Chairman drew the Technical Committee’s attention to Doc. OC0021 on the permanent
responsibilities of the Technical Committee.  Given the plan for completing the Harmonization WorkProgramme, it was vital that a clear decision be taken on these aspects at this session.  This document
was to be examined under the Agenda item “Other business”.
13. To enable delegations to consult with one another and possibly with their home
administrations, the Technical Committee decided to be flexible regarding the timetable.  In addition,to facilitate decision-making within the Techni cal Committee, Working Groups would meet from 9 to
10 a.m., 2 to 3 p.m. or 6 to 7 p.m.
14. As indicated above, the timetable for this session was adopted by the Technical Committee.G/RO/37/Add.1
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II. REPORT BY THE SECRETARIAT
(a) Position regarding Members of the WTO
Doc. OC000315. Mr. Zielinski informed the Technical Committee that there had been no change in the position
regarding Members since the previous session.  The position described in Doc. OC0003, prepared for
the Technical Committee’s 16th Session, was still valid.
16. The Technical Committee took note.
(b) Intersessional developments
Doc. OC002017. Mr. Zielinski informed the Technical Committee that, since the previous session, the
Committee on Rules of Origin had held two meetings , one informal and the other formal.  The WCO
Secretariat had attended the formal meeting as an ob server.  At that meeting, the Chairman of the
Technical Committee had presented his Progress Report, attached as an Annex to Doc. OC0020, on
results achieved at the Technical Committee’ s 16th Session.  The Chairman of the Technical
Committee had received a letter from the Chairman of the Committee on Rules of Origin, alsoannexed to Doc. OC0020, inviting him to inform the members of the Technical Committee that, in
accordance with the timetable laid down by the Committee and endorsed by the General Council of
the WTO in July 1998, the final results of the Technical Committee’s work within the Harmonization
Work Programme were to be sent to the Committee by the end of May 1999.
18. The Chairman informed the Technical Comm ittee that, during the Committee meeting, the
Delegation of the European Community had circulated an informal document containing the
framework for Rule 2 of Appendix 2 of the overall architecture.  That informal document could form
the basis for examining that Agenda item.  The Chairman invited that Delegation to present its
document during the examination of the corresponding Agenda item.
19. Mr. Zielinski then reported on the work of the 23rd Session of the Harmonized System
Committee and the 169th Session of the Permanent Technical Committee.
20. He informed the Technical Committee that the Secretariat had received 35 requests for
technical assistance.
21. He also announced the departure of two Technical Attachés from the Secretariat :
Ms. Anna KELE (Hungary) and Mr. E.M. LEIGH (United States).  He expressed his gratitude to the
two Attachés for the excellent quality of their work at the Secretariat.  Those thanks, echoed by the
Chairman and the Technical Committee, were also addressed to the United States and Hungarian
Customs Administrations for the support they had given the Origin Project since the outset.  TheChairman and the Technical Committee wished both Attachés all the best on their return to their home
administrations and every success for their future career.G/RO/37/Add.1
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III. ADOPTION OF THE REPORT OF THE 16TH SESSION
Doc. 0010E/2 (Second draft)
22. The Technical Committee took note of the comments from several delegations, decided to
make the corresponding amendments and adopted the Report of the 16th Session.  The final version ofthat Report would be circulated as Doc.OC0010E/3.
23. The Technical Committee instructed the Secretariat to make the necessary adjustments in
order to insert, in the final Report of the 16th Session, the proposals by the United States Delegation
on residual rules applicable to Chapters 42 and 43, and to align Note 1 of these two Chapters to take
account of the new template.
IV. DRAFT HARMONIZED RULES OF ORIGIN FOR PARTICULAR PRODUCTS OR
PRODUCT SECTORS (CHAPTER NOTES, TABLES, PREPARATION OF
RESIDUAL RULES)
24. The Technical Committee re-examined the Rules proposed for Chapters 1-24, 50-63, 82-83,
84-90 and 91-97 on the basis of the Secretariat's draft templates, the Consolidated Text and the
reference documents indicated in the following table.  The results of this examination are set out at the
Annexes hereto as follows.
AGENDA ITEM CHAPTERS REFERENCE
DOCUMENTANNEXES
IV. 1/ 1-24 C/1 and C/2
IV. 2/ 50-63  D/1 and D/2
IV. 3/ 82-83 E/1
IV. 4/ 84-90 F/1 and F/2
IV. 5/ 91-97 G/1 and G/2
25. With regard to the issues on which consensus had not been reached, the Technical Committee
decided that the templates indicated in the follo wing table should be submitted to the Committee for
decision:
Template No. Subject Observations
OC0028/2 Mixtures in Chapters 1 to 24
42.574/Cor Chapter 15
OC0023/2 Textile Chapters and textile products
classified in other ChaptersThis template covers
Chapters 30, 42, 43, 58, 59,
61 to 66, 87, 88, 91 and
94 to 96.
OC0025/2 Chapter 82
OC0026/2 Chapter 83
OC0031/1 Chapters 84 to 90
OC0033/1 Chapter 95
OC0034/1 Chapter Notes and residual rules
OC0035/1 Chapters 93 to 97
26. In view of the schedule for finalizing the work, the Technical Committee also examined theissues outstanding since the 16th Session.  That examination resulted in the following templates:G/RO/37/Add.1
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Template No. Subject Observations
OC0032/1 Chapters 28 to 38 This template covers
Chapters 30 to 38
OC0014/1 Chapters 28/35 and 39/40
OC0016/1 Chapter 35 This template covers
heading 35.07
OC0012/2 Chapter 70
OC009/2 Chapter 71
27. Issue No. 5 in template Doc. OC0031/1 relating  to Chapters 84 to 90 also applies to Chapters
42, 43 to 46, 48 and 49, subject to removing the options not proposed for these latter Chapters.
V. OVERALL ARCHITECTURE OF THE HARMONIZED RULES OF ORIGIN
Doc. 0010 and the European Community’s informal document
28. When presenting the informal document that it had circulated in Geneva, the Delegation of
the European Community explained that this document was aimed specifically at reconciling the
points of view of the Technical Committee members on how to apply the Rules, and that it would be a
good starting point for reaching consensus on this matter.  The Technical Committee took note and
asked the Secretariat to prepare a document giving details of the European Community’s informal
document and including the other provisions of the overall architecture.
29. On the basis of a that new document prepared by the Secretariat, the Technical Committee
examined this Agenda item.  The results of the examination can be found at Annexes H/1 and H/2 to
this Report.
VI. ADOPTION OF THE ARCHITECTURE OF THE HARMONIZED RULES OF
ORIGIN TO BE REFERRED TO THE COMMITTEE ON RULES OF ORIGIN FOR
APPROVAL
30. The Technical Committee adopted the text on the overall architecture of the Harmonized
Rules of Origin.  The unresolved issues are in square brackets in a template (Doc. OC0029) submitted
to the CRO for decision.
VII. OTHER BUSINESS
(a) Report by the Chairman of the Technical Committee on Rules of Origin to the Committee on
Rules of Origin
31. The Chairman informed the Technical Committee that when he attended the next session of
the Committee on Rules of Origin, scheduled for 28 June 1999, he would be reporting on the progressmade with the Technical Committee’s work at the end of its 17th Session.  He would also stress that
the Technical Committee remained willing to con tinue working alongside the Committee to finalize
the Harmonization Work Programme under the best possible conditions and as quickly as possible.G/RO/37/Add.1
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(b) Future workDoc. OC002132. Mr. Zielinski informed the Technical Committee that the purpose of Doc. OC0021 was to
enable the Technical Committee to establish a strategic plan for the short, medium and possibly longterm.  In fact, Article 6 of the Agreement on Rules of Origin (the Agreement) and Annex I thereto
clearly specified the nature of the tasks to be carried out by the Technical Committee both during the
transition period and after the finalization of the Work Programme.
33. Several delegations expressed their appreciatio n to the Secretariat for inviting the Technical
Committee to discuss such an important matter at the present stage.  Although some of those tasks had
to be carried out in conjunction with or after cl ear instructions from the Committee, the Agreement
nevertheless assigned the Technical Committee responsibilities which required it to establish a
flexible work plan taking account, inter alia, of any requests from the Committee linked to the
finalization of the Harmonization Work Programme.
34. One delegation felt that the Technical Committee needed to draw up a plan for its future
work.  For example, it could devote part of its 18 th Session in September 1999 to an examination of
some of the templates submitted to the Committee, w ith a view to determining the extent to which
those templates had been affected by the subsequent work, particularly the progress with issues
relating to the overall architecture.  Such an initiative would greatly help the Committee when
examining the large number of issues before it.
35. That delegation added that the technical work accomplished could clearly be improved in the
light of the progress made by the Technical Committee,  particularly regarding the architecture.  There
were clearly also many outstanding technical issues, and an additional examination by the Technical
Committee would undoubtedly make it possible to resolve some of those issues,  thus lightening theCommittee’s workload.
36. Several delegations felt that a one-week Technical Committee meeting in September was vital
to examine some of the aspects set out in the Se cretariat's document.  Other delegations wished to
have time to consult the competent authorities in their country before any decision was taken on this
matter.  However, with regard to the Harmoniza tion Work Programme itself, it seemed clear that,
after its 17th Session, the Technical Committee had to wait for any further requests from theCommittee.
37. Several delegations felt that, in the light of the mandate from the WTO General Council and
from the Committee in July 1998 stipulating that th e results of the Technical Committee’s work had
to be sent to the Committee by the end of May 1999, it would be premature at this point to plan theTechnical Committee’s future activities in the context of the Harmonization Programme without
having received a mandate from the Committee.
38. One delegation pointed out that the previous year, when the Committee had extended the
Harmonization Work Programme, it had considered that the extra time allotted was sufficient tofinalize the Programme.  Once the Committee noted that this objective had not been achieved, it
would doubtless decide to refer a number of issues back to the Technical Committee for re-
examination.  It was therefore suggested that a flexible stance be adopted and the September session
be maintained.
39. The Chairman said that the channels of co-operation between the two Committees that had
existed since the beginning of the Harmonization Work Programme had always made for
understanding and close co-operation between the tw o bodies.  The time had perhaps now come for
that co-operation to be strengthened further.  Th e indisputable objective of the two Committees was toG/RO/37/Add.1
Page 8
provide the international trading community with an optimum, clear, precise and easily manageable
instrument.  To achieve that objective, he felt  that the excellent co-operation between the two
Committees could only be intensified.
40. In fact, the distinction between the two Committees was only a virtual one since the same
Members participated in both Committees; consultation within each delegation would be enough to
clarify matters further.
41. In conclusion, the Chairman summarized the Technical Committee’s discussions as follows :- The Technical Committee was a permanent structure within the WCO.
- Document OC0021 on the Technical Committee’s  permanent responsibilities would be
appended to the Report on this session to ensure that the Committee was informed (see Annex IJ).
- The Technical Committee noted with satisfaction that the draft calendar of WCO meetings for
1999/2000 provided, inter alia, for an 18th Session of the Technical Committee from 30 August to 10September 1999. Thanking the WCO for the priority it continued to give to the work on origin, the
Technical Committee indicated that, given the present situation,  advice was needed regarding the
length of the meeting and the topics to be dealt with.
- His report to the Committee summarizing the work at this session would mention all possible
scenarios for co-operation and would make clear, in particular, that the Technical Committee
remained fully at the Committee’s service to prov ide any assistance that might help relieve the
Committee of technical tasks that were being examined.
(c)  Proposed Chapter Note for Chapter 7342. The Japanese Delegation proposed the following additional text for a Chapter Note to
Chapter 73:
“For heading 73.18 mere attachment without grinding to shape, heat treatment and surface treatment
operation is not considered to be a substantial transformation”.
VIII. DATE AND PLACE OF THE NEXT SESSION
43. The Technical Committee's next session was tentatively scheduled to be held at WCO
Headquarters in Brussels from 30 August to 10 September 1999.
IX. ADOPTION OF THE REPORT OF THE TECHNICAL COMMITTEE’S 17
TH
SESSION
44. The Technical Committee adopted the Report on its 17 th Session.G/RO/37/Add.1
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LIST OF PARTICIPANTS
LISTE DES PARTICIPANTS
LISTA DE PARTICIPANTES
CHAIRMAN OF THE TECHNICAL Mr. W.A. CLAYPOLE (Canada)
COMMITTEE/
PRESIDENT DU COMITE TECHNIQUE/
PRESIDENTE DEL COMITÉ TÉCNICO
MEMBERS/MEMBRES/MIEMBROS
ARGENTINA/ARGENTINE
Delegate/Délégué/Delegado
Sr. C. ALBISETTI,
Consejero Económico,
Embajada de Argentina
AUSTRALIA/AUSTRALIE
Delegate/Délégué/Delegado
Ms.  D. BATES,
National Manager, Tariff,
Alternate/Suppléant/Suplente
Ms. C. MARSDEN-SMEDLEY,
Counsellor,
Australian Customs
BANGLADESH
Delegate/Délégué/Delegado
Mr. M. MANNAN,
Permanent Representative to WCO,Embassy of Bangladesh
BELGIUM/BELGIQUE/BÉLGICA
Delegate/Délégué/Delegado
M. F. PIRRON,
Premier Attaché des finances,
Ministère des Finances,
Administration des Douanes et AccisesG/RO/37/Add.1
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Alternates/Suppléants/Suplentes
M. P. BOURGOIS,
Inspecteur,
Ministère des Finances,Administration des Douanes et Accises
M. P. SNAUWAERT,
Vérificateur Principal
Ministère des Finances,
Administration des Douanes et Accises
M. V. VAN GEEL,
Conseiller-adjoint
Ministère des Affaires Economiques
Mme. N. TEUGELS,
Conseiller-adjoint,
Ministère des Affaires Economiques
Adviser/Conseiller/Asesor
M. P. HAEYAERT,
Assistant Administratif,
Ministère des Finances,
Administration des Douanes et Accises
BRAZIL/BRESIL/BRASIL
Delegate/Délégué/Delegado
Ms. N.G. PEREIRA,
Adviser
Alternate/Suppléant/Suplente
Ms. T. C. G. FERREIRA,
Coordinator,
Tariff and Trade Affairs
BULGARIA/BULGARIE
Delegate/Délégué/Delegado
Ms. A. BOBEVA,
Head of Department “Origin of Goods”G/RO/37/Add.1
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CANADA
Delegate/Délégué/Delegado
Mr. M. HENRIQUES,
Manager,Trade Obligations,
International Strategic Direction
Revenue Canada
Alternate/Suppléant/Suplente
Ms. H. THOMPSON,
Senior Policy Officer
Adviser/Conseiller/Asesor
Ms. M. KIDD,
Counsellor,
Canadian Mission
CHILE/CHILI
Delegate/Délégué/Delegado
Sr. R. CONTRERAS,
Asesor
COLOMBIA/COLOMBIE
Delegate/Délégué/Delegado
Sra. C. OROZCO
Ministra Consejera
Misión de Colombia ante OMC
Alternate/Suppléant/Suplente
Sra C. GAVIRIA,
Asesora,Ministerio de Comercio
 Exterior
CZECH Rep./Rép. TCHEQUE/Rep. CHECA
Délégué/Delegate/Delegado
Mr. M. BAYER,
Customs Officer,
General Directorate of Customs
Alternate/Suppléant/Suplente
Mr. T. KÚCÍREK,
Customs AttachéG/RO/37/Add.1
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DENMARK/DANEMARK/DINAMARCA
Delegate/Délégué/Delegado
Mr. K. KONGSTED
EGYPT/EGYPTE/EGIPTO
VICE CHAIRMAN/VICE-PRESIDENT/VICE PRESIDENTE
Delegate/Délégué/Delegado
Ms. N. MALASH,
Advisor,Ministry of Trade
Alternate/Suppléant/Suplente
Mr. S.T. EL DAMIATY,
Director of tariff administration,
Ministry of Finance
Advisers/Conseillers/Asesors
Mr. S.A. SAMEE,
General Director,
Ministry of Trade & Supply
Mr. A.T. ELLIBEDY,
Commercial Secretary,
Embassy of Egypt
Mr. M. DOIDAR,
Commercial Attaché,
Ministry of Trade & Supply
EUROPEAN COMMUNITIES/COMMUNAUTES EUROPEENNES/
COMUNIDADES EUROPEAS
Delegate/Délégué/Delegado
M. R. VAN RAAN,
Administrateur Principal
Alternate/Suppléant/Suplente
Mme. M. CABRAL,
Administrateur Principal
Advisers/Conseillers/Asesores
Mme. C. EDERY,
Administrateur
M. J. VERHEGGEN,
AdministrateurG/RO/37/Add.1
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FIJI/FIDJI
Delegate/Délégué/Delegado
Mr. V. RAIKUNA,
Customs Attaché
FINLAND/FINLANDE/FINLANDIA
Delegate/Délégué/Delegado
Mr. J.T. SERNI,
Customs Secretary
FRANCE/FRANCIA
Delegate/Délégué/Delegado
Mme. J. CUTZACH,
Inspecteur des Douanes,
Direction générale des Douanes et Droits Indirects
Alternate/Suppléant/Suplente
Mme. C. MOITY-MARTINACHE,
Inspecteur des Douanes,
Direction générale des Douanes et Droits Indirects
GERMANY/ALLEMAGNE/ALEMANIA
Delegate/Délégué/Delegado
Mr. J. SCHLÖESSER,
OberamtsratMinistry of Finance
Alternate/Suppléant/Suplente
Mr. G. HEINZELMANN,
Oberamtsrat
Ministry of Economics
GHANA
Delegate/Délégué/Delegado
Mr. E.N. NOI,
Deputy Commissioner
Alternate/Suppléant/Suplente
Ms. V. SADAH,
Chief Collector (Export)G/RO/37/Add.1
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HONG KONG (China/Chine)
Delegate/Délégué/Delegado
Mr. A. LEE,
Principal Trade Officer,
Trade Department of the
 Hong Kong Special Administrative
 Region
Alternate/Suppléant/Suplente
Mr. D. TAI,
Principal Trade Controls Officer,
Customs & Excise Department of the
 Hong Kong Special Administrative
 Region
Adviser/Conseiller/Asesor
Mr. K.T. LO,
Senior Scientific Officer,Industry Department of the
 Hong Kong Special Administrative
 Region
HUNGARY/HONGRIE/HUNGRIA
Delegate/Délégué/Delegado
Mrs. M. CSIKY,
Director,
Ministry of Finance
Alternate/Suppléant/Suplente
Mrs. J. MAGYAR,
Chief Counsellor,
Ministry of Industry, Trade and Tourism
Adviser/Conseiller/Asesor
Ms. A. KELE,
Director,
Ministry of Finance
INDIA/INDE
Delegate/Délégué/Delegado
Mr. J. DOMINIC,
Commissioner of Customs & ExciseG/RO/37/Add.1
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Alternate/Suppléant/Suplente
VICE CHAIRMAN/VICE-PRESIDENT/VICE PRESIDENTE
Mr. C. SATAPATHY,
Commissioner of Customs & Excise
Adviser/Conseiller/Asesor
Mr. D.K. NAIR,
ADDL
INDONESIA/INDONESIE
Delegate/Délégué/Delegado
Mr. N. NASRUN,
Customs Attaché,Indonesian Mission to the EU
ISRAEL/ISRAËL
Delegate/Délégué/Delegado
Mr. D. PELED,
Customs Attaché,
Embassy of Israel
ITALY/ITALIE/ITALIA
Delegate/Délégué/Delegado
M. A. DE LORENZO,
Administrateur,
Direction générale et des Impôts indirects
JAPAN/JAPON
Delegate/Délégué/Delegado
Mr. N. MIZUNO,
Director for Trade Negotiation,
Customs & Tariff Bureau,
Ministry of Finance
Alternates/Suppléants/Suplentes
VICE CHAIRMAN/VICE-PRESIDENT/VICE PRESIDENTE
Mr.T. KAMIKAWA,
Deputy Director, Co-ordination Division,
Customs and Tariff Bureau,
Ministry of FinanceG/RO/37/Add.1
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Mr. C. SATO,
First Secretary,
Embassy of Japan
Advisers/Conseillers/Asesores
Mr. H. KAIDA,
Deputy Director,
Customs Tariff Bureau,
Ministry of Finance
Mr. S. MIURA,
Assistant Director,
International Economic Affairs Division,
Ministry of Agriculture,
 Forestry and Fisheries
Mr.  H. SEKINE,
Deputy Director,
Tariff Division,
Trade Policy Bureau,
Ministry of International Trade & Industry
KOREA (Rep. of)/COREE (Rép. de)/COREA (Rep. de)
Delegate/Délégué/Delegado
Mr. W.T. YI,
Financial Attache,
Embassy of the Republic of Korea
Alternate/Suppléant/Suplente
Mr. I. S. CHUNG,
Vice Director,
Trade Co-operation Division,
Korean Customs Service
LIECHTENSTEIN
Delegate/Délégué/Delegado
M. S. MOSER,
Expert Origine,Office Fédéral des Affaires Economiques Extérieures
LUXEMBOURG/LUXEMBURGO
Delegate/Délégué/Delegado
M. F. PIRRON,
Auditeur Adjoint,
Administration Centrale des Douanes
 et Accises (Belgique)G/RO/37/Add.1
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MADAGASCAR
Delegate/Délégué/Delegado
M. J.A. RAMILISON,
Attaché douanier,
Ambassade de Madagascar
MALAYSIA/MALAISIE/MALASIA
Delegate/Délégué/Delegado
Mr. I. ISMAIL,
Minister Counsellor (Customs)
Mission of Malaysia to EU
MAURITANIA/MAURITANIE
Delegate/Délégué/Delegado
M. H. O. M. MAHFOUDH,
Premier Conseiller, chargé des Affaires
 Economiques et douanières
MOROCCO/MAROC/MARRUECOS
VICE CHAIRMAN/VICE-PRESIDENT/VICE PRESIDENTE
Delegate/Délégué/Delegado
Mme. L. GHRAIRI,
Chef du Service des Organisations Internationales,
Administration des Douanes et Impôts Indirects
Alternates/Suppléants/Suplentes
M. M. TAOUFIQ,
Chef de Division des Investissements
 Et de la Programmation,
Ministère des Pêches Maritimes
Mme. L. EL BOUABDELLAOUI,
Département du Commerce, de l’Industrie
 et de l’Artisanat
Adviser/Conseiller/Asesor
Mlle O. EL KHALFI,
Chef de Service,
Ministère du Commerce, de l’Industrie
 et de l’ArtisanatG/RO/37/Add.1
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NETHERLANDS/PAYS-BAS/PAÍSES BAJOS
Delegate/Délégué/Delegado
Mr. T.W.G.M. VOLKERS,
Policy Adviser,
Ministry of Finance
Alternate/Suppléant/Suplente
Mr. W. KEIZER,
Policy Adviser,Ministry of Economic Affairs
NEW ZEALAND/NOUVELLE-ZELANDE/NUEVA ZELANDIA
Delegate/Délégué/Delegado
Mr. M.H. KEMP,
First Secretary (Customs),
Embassy of New Zealand
NORWAY/NORVEGE/NORUEGA
Delegate/Délégué/Delegado
Mr. U. HOBERG,
Adviser International Affairs,
Directorate of Customs & Excise
PAKISTAN
Delegate/Délégué/Delegado
Mr. S. AHMAD,
Minister (Customs Affairs),
Embassy of Pakistan
PANAMA/PANAMÁ
Delegate/Délégué/Delegado
Sra.. C. THOMAS,
Jefe de Normas de Origen & Procedimientos Aduaneros, Dirección General de Aduanas
Alternate/Suppléant/Suplente
Mr. J.E. RUIZ,
Attaché,
Embassy of the Republic of PanamaG/RO/37/Add.1
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PARAGUAY
Delegate/Délégué/Delegado
Sr. E.J. VON GLASENAPP,
Primer Secretario,
Embajada del Paraguay
PHILIPPINES/FILIPINAS
Delegate/Délégué/Delegado
Mr. E. HERNANDEZ,
Executive Director,
Board Investments,
Department of Trade and Industry
Alternate/Suppléant/Suplente
Mr. R. BORILLO,
Commercial Attaché,Embassy of Philippines
Adviser/Conseiller/Asesor
Ms. M.F. ALBERTO,
Agricultural Attaché
Adviser/Conseiller/Asesore
Ms. T. JOVER,
Deputy Executive Director
POLAND/POLOGNE/POLONIA
Delegate/Délégué/Delegado
Ms. T. MACKIEWICZ,
Expert,
Central Board of Customs
Alternate/Suppléant/Suplente
Mr. M. SOCHAL,
Expert,
Ministry of Economy
Adviser/Conseiller/Assesor
Mr. E. MADEJ,
Expert,
Ministry of EconomyG/RO/37/Add.1
Page 20
PORTUGAL
Delegate/Délégué/Delegado
Sra. A. CARVALHO,
Chefe de Divisão,
Direccão General das Alfãndegas
SENEGAL
VICE CHAIRMAN/VICE-PRESIDENT/VICE PRESIDENTE
Delegate/Délégué/Delegado
M. O. NDOYE,
Direction des Etudes et de la Réglementation douanière
SLOVAKIA/SLOVAQUIE/Rep. ESLOVACA
Delegate/Délégué/Delegado
Mr. J. TUPÝ,
Head Unit,
Customs Directorate
SLOVENIA/SLOVENIE
Delegate/Délégué/Delegado
Ms. MRAVLJA,
Counsellor,
Ministry of Finance
SOUTH AFRICA/AFRIQUE DU SUD/SUD AFRICA
Delegate/Délégué/Delegado
Mr. C.C. VAN RENSBURG,
Deputy Director (Imports & Exports),
Embassy of South Africa
Alternate/Suppléant/Suplente
Mr. G.W. BUSBY,
Counsellor (Customs)
Embassy of South Africa
SPAIN/ESPAGNE/ESPAÑA
Delegate/Délégué/Delegado
Sra. M.D. CUEVAS PEREZ-CEJUELA,
Coordinadora de Area normativa,Ministerio Economía y Hacienda,
Dirección General de TributosG/RO/37/Add.1
Page 21
Alternate/Suppléant/Suplente
Sra. L. MARTINEZ DE LA VIUDA,
Jefe de Servicio,
Ministerio Economía y Hacienda,Dirección General de Tributos
SWEDEN/SUEDE/SUECIA
Delegate/Délégué/Delegado
Mrs. G. LARSON,
Senior Research Officer,
National Board of Trade
SWITZERLAND/SUISSE/SUIZA
Delegate/Délégué/Delegado
M. S. MOSER,
Expert Origine,
Office Fédéral des Affaires Economiques Extérieures
Alternate/Suppléant/Suplente
M. H. BOLICK,
Expert Origine
Direction Générale des Douanes
Adviser/Conseiller/Asesore
M. J.-F. FASSORA,
Expert Origine,
Direction Générale des Douanes
THAILAND/THAILANDE/TAILANDIA
Delegate/Délégué/Delegado
Ms. N. SANTIYANONT,
Assistant Director, Customs Tariff Group
Office of Customs Counsellor,
Embassy of Thailand
Alternate/Suppléant/Suplente
Mr. U. RATTANAWONGNARA,
First Secretary (Customs)
Embassy of Thailand
Advisers/Conseillers/Asesores
Mr. N. LEELARASAMEE,
Technical Adviser,
Ministry of CommerceG/RO/37/Add.1
Page 22
Mr. P. MALAKUL NA AYUTHYA
Representative of Thailand Board of Trade
Mr. T. SOMPOB
Trade Technical Officer
TUNISIA/TUNISIE/TÚNEZ
Delegate/Délégué/Delegado
M. Y. BEN-ABDESSALEM,
Sous-Directeur,Direction générale des Douanes,
Ministère des Finances
TURKEY/TURQUIE/TURQUIA
Delegate/Délégué/Delegado
Mr. O. ONAL,
Deputy Director General for EC and External Relations
Alternate/Suppléant/Suplente
Mr. K. TOKGOZ,
Expert (Origin)
Advisers/Conseillers/Asesores
Mr. M. ZEREN,
Expert (Electronics)
Mr. U. TIRYAKIOGLU,
Expert (Electronics)
Mr. M. ASLANER,
Expert (Automotive)
UNITED KINGDOM/ROYAUME-UNI/REINO UNIDO
Delegate/Délégué/Delegado
Mr. M. P. D. KENNY,
Senior Desk Officer (Origin),Department of Trade & Industry
URUGUAY
Delegate/Délégué/Delegado
Sra. C. GIAMBRUNO,
Ministro Consejero,
Embajada de UruguayG/RO/37/Add.1
Page 23
Alternate/Suppléant/Suplente
Sra. A. PLATAS,
Primer Secretario,
Embajada de Uruguay
UNITED STATES/ETATS-UNIS/ESTADOS UNIDOS
Delegate/Délégué/Delegado
Mr. E. ROSENGARDEN,
Director,
Tariff Affairs and Trade Agreements,International Trade Commission
Alternate/Suppléant/Suplente
Mr. R. CHOVANEC,
Senior Attorney,
International Agreements Staff
Advisers/Conseillers/Asesores
Mr. R. MALL,
Customs Attaché,
US Mission
Mr. M. WALSH,
International Trade Specialis,
US Department of Commerce
Mr. M. LARIA,
Customs Representative,
US Mission to EU
YEMEN/YÉMEN
Delegate/Délégué/Delegado
Mr. A. HAJAR,
Minister,
Embassy of Yemen
OBSERVERS
WORLD TRADE ORGANIZATION (WTO)/ORGANISATION MONDIALE DU
COMMERCE (OMC)/ORGANIZACIÓN MUNDIAL DEL COMERCIO (OMC)
Delegate/Délégué/Delegado
Mr. E. KIM,
Economic Affairs OfficerG/RO/37/Add.1
Page 24
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD)/
CONFERENCE DES NATIONS-UNIES SUR LE COMMERCE ET LE DEVELOPEMENT
(CNUCED)/CONFERENCIA DE LAS NACIONES UNIDAS SOBRE COMERCIO Y
DESAROLLO
Delegate/Délégué/Delegado
Mr. S. INAMA,
Project Coordinator,
Division of International Trade in
 Goods and Services and Commodities
ALGERIA/ALGERIE/ARGELIA
Delegate/Délégué/Delegado
M. N.E. LOUNI,
Sous-Directeur,
Direction Générale des Douanes
AZERBAIJAN/AZERBAIDJAN/AZERBAYÁN
Delegate/Délégué/Delegado
Mr. K. ASURLU
Alternate/Suppléant/Suplente
Mr. S. MIKAILOV
CHINA/CHINE
Delegate/Délégué/Delegado
Ms. Y. LI,
Deputy Assistant Commissioner,Embassy of China
Alternate/Suppléant/Suplente
Mr. X. Y. SONG,
Customs Attaché,Embassy of China
ESTONIA/ESTONIE
Delegate/Délégué/Delegado
Ms. A. PIHEL,
Chief Expert
JORDAN/JORDANIE/JORDANIA
Delegate/Délégué/Delegado
Mr. A. JONDEH,
Tariff TechnicalG/RO/37/Add.1
Page 25
LYBIAN ARAB JAMAHIRIYA/JAMAHIRIYA ARABE LIBYENNE/
JAMAHIRIYA ARABE LIBIA
Delegate/Délégué/Delegado
Mr. A. EDLEW,
Permanent Representative to the WCO,
Embassy of Libya
RUSSIAN FEDERATION/RUSSIE (Fédération de)/FEDERACIÓN DE RUSIA
Delegate/Délégué/Delegado
Mr. Y. MELNIKOV,
Conseiller juridique de la
 Représentation Commerciale de la Russie en Belgique
Alternate/Suppléant/Suplente
Mme. S. ARABADJEVA,
Expert Principal
SAUDI ARABIA/ARABIE SAOUDITE/ARABIA SAUDITA
Delegate/Délégué/Delegado
Mr. A. AL-HAMAIDHI,
Customs Attaché,
Embassy of Saudi Arabia
SUDAN/SOUDAN/SUDÁN
Delegate/Délégué/Delegado
Mr. O.A. ISMAIEL,
Chief of Classification Section,
Embassy of Sudan
UKRAINE/UCRANIA
Delegate/Délégué/Delegado
Mr. O. KOVAL,
Conseiller,Affaires douanières,
Mission d’Ukraine auprès de l’UE
SECRETARIAT/SECRETARIA
Mr. M.F. ZIELINSKI,
Head of Project
Mr. H. IMAGAWA,
Technical OfficerG/RO/37/Add.1
Page 26
Mr. E.M. LEIGH,
Technical Attaché
M. A. NAJI,
Attaché technique
M. P.P. de VAUCHER,
Attaché technique
Mr. J. H. PARK,
Technical Attaché
INTERPRETERS/INTERPRETES
M. L. BELLAGAMBA
M. G. GILLOTMme. P. MANIN
Mme. C. MALFAIT
Mme. J . LEFEBVRE-DUBUISSON
Mme. D. LAMM
M. C. AMELLERM. T. CARBONE
M. T. GARZÓN-JOLIG/RO/37/Add.1
Page 27
ANNEX B
AGENDA
FOR THE SEVENTEENTH SESSION OF
THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
Secretariat Note: This Annex reproduces the ad opted Agenda of the Seventeenth Session and
provides an index to the paragraphs and Annexes of the Report of the Session.
Agenda Item Paragraphs in Report and Annexes
I. ADOPTION OF THE AGENDA
(a) Draft Agenda Paras. 7 - 10
(b) Draft Timetable Paras. 11 - 14
II. REPORT BY THE SECRETARIAT
(a) Position regarding Members of WTO  Paras. 15 and 16
(b) Intersessional developments Paras. 17 - 21
III. ADOPTION OF THE REPORT OF THE
16TH SESSIONParas. 22 and 23
IV. DRAFT HARMONIZED RULES OF ORIGIN
FOR PARTICULAR PRODUCTS ORPRODUCT SECTORS (CHAPTER NOTES,
TABLES, PREPARATION OF RESIDUAL
RULES)Paras. 24 - 27
1. Re-examination of Rules of Origin concerning
Chapters 1 - 24Annexes C/1, C/2
2. Re-examination of Rules of Origin concerning
Chapters 50 - 63Annexes D/1, D/2
3. Re-examination of Rules of Origin concerning
Chapters 82 - 83Annex E/1
4. Re-examination of Rules of Origin concerning
Chapters 84 - 90Annexes F/1, F/2
5. Re-examination of Rules of Origin concerning
Chapters 91 - 97Annexes G/1, G/2G/RO/37/Add.1
Page 28
V. OVERALL ARCHITECTURE OF THE
HARMONIZED RULES OF ORIGIN;
COMMON TERMINOLOGYParas. 28 and 29
Overall architecture of the Harmonized Rules of
Origin; common terminologyAnnexes H/1, H/2
Order of application
Residual rules
Illustrative Arrangement of Chapter Notes
Other
VI. ADOPTION OF THE ARCHITECTURE OF
THE HARMONIZED RULES OF ORIGIN TO
BE REFERRED TO THE CRO FOR
APPROVAL  (Results of 17 th Session discussion)Para. 30
VII. OTHER BUSINESS
(a) Report by the Chairman of the Technical Committee
on Rules of Origin to the Committee on Rules of
OriginPara. 31
(b) Future work Paras. 32 - 42
VIII. DATE AND PLACE OF THE NEXT SESSION Para. 44G/RO/37/Add.1
Page 29
ANNEX C/1
AGENDA ITEM IV.1 Draft harmonized rules of origin for particular
products classified in Chapters 1 to 24 (Chapter
Notes, tables, preparation of residual rules)
Working DocumentsConsolidated Text of the Technical Committee
Draft template on mixturesDocs. 41.146, 42.574 et 42.536.
Texts adopted reproduced in Annex C/2
VIEWS AND DECISIONS OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
Although certain delegations had informed the Technical Committee that specific proposals
on the residual rules for Chapters 1 to 24 would be submitted at a later stage, the Technical
Committee decided, on the basis of the plan adopted to finalize the Harmonization Work Programme,
to examine the outstanding issues in these Chapters  and to submit the results of this examination to
the Committee within the time-limits set.
It was, however, pointed out that in the absence of specific proposals and final results
concerning determination of origin in Appendix 2 (overall architecture), the Members retained the
right to submit proposals on Chapters 1 to 24 at a later stage.
The Technical Committee took note of the Canadian Delegation’s concern that delegations
were not prepared for the final examination of the outstanding issues in these Chapters.  The Canadian
Delegation said that this meant that the Technical Committee would not be able to carry out an
exhaustive examination of those issues.
When examining these Chapters, the Techni cal Committee took note of the following
proposals:
General proposals
For Chapters 1 to 2 and 4 to 24, where the primary rule was not met, a weight or volume
criterion, as appropriate, should be applied  (NZ).
For mixtures classified in Chapters 2 to 24, a general residual rule should be applied based on
the total value of the different components of the mixture, taking account of the related transformation
operations (CH).
Specific proposals by Chapter and issues submitted to the Committee for decision :
Chapter 1
Where the primary rule was not met:
The provisions of the overall architecture of the Rules of Origin relating to the determination
of origin in the context of Appendix 2 should be applied;
In the case of animals of the same species with different origins, the origin of each individual
animal should be determined, where possible.  If this were not possible, the special provision on
fungible goods should be applied (CAN).
Note : Use of a particular inventory method should in no way change the origin of the animal (EC).G/RO/37/Add.1
Page 30
Chapter 2
Where the primary rule was not met:
The origin should be the country where the animal was slaughtered (CAN);
The provisions of the overall architecture on the determination of origin in the context of
Appendix 2 should be applied.
Chapter 3
NOTE : The Technical Committee noted that the splitting of heading 03.01 into ex 03.01 (a)
(ornamental fish), and ex 03.01 (b) (other live fish), should probably be aligned on the HS
Nomenclature, given that the scope of ex 03.01 (a) was exactly the same as subheading 0301.10.  If
necessary, that alignment would be effected during the coherence phase.
Where the primary rule was not met:
A residual rule should be applied based on the place where the fish was caught and, if this
were not met, a weight criterion should be applied (NZ);
The provisions of the overall architecture on the determination of origin in the context of
Appendix 2, Rule 2 should be applied.
Chapter 4
Where the primary rule was not met:
The following residual rule should be applied  “The origin shall be the country where the mixing took
place, provided that the inputs originating in that country represent at least 80 % by weight of the milk
used.  If not, the origin shall be the country accounting for the largest percentage of non-originating
milk by weight” (CAN).
Chapter 6
For heading 06.03 (a) and heading ex 06.04 (a) (wre aths, flower baskets, buttonholes and the
like), where the primary rule based on the Ottawa terminology was not met and the components of thearticle originated in several countries, the country of origin should be the country where the article
was obtained (CAN).
Chapters 7 and 8
The Technical Committee decided to submit to the Committee for decision the issue of
determining the origin of mixtures classified in subheadings 0710.90, 0711.90, 0712.90 and 0813.50
(see Doc. OC0028, Issue No. 121).G/RO/37/Add.1
Page 31
Chapter 9
The Technical Committee decided to submit to the Committee for decision the issue of
determining the origin of mixtures of coffee classified in heading 09.01 (see Doc. OC0028, Issue
No. 122).
Chapter 10
Where the primary rule was not met, the following residual rule applicable to mixtures should
be applied: “The origin shall be the country in which the mixing took place, provided that the inputs
originating in that country represent at least 85 % by weight of the non-originating cereals ” (CAN).
Chapter 15
The Secretariat reminded the Technical Committ ee, that following the examination of this
Chapter at the 12th and 13th Sessions, it had been noted that the technical examination had been
finalized and the issues raised had been submitted to the Committee for decision at that time : two
Chapter Notes had been retained in Basket 2, one on mixtures and the other on origin criteria to beapplied where the primary rules were not met (see template 42.574 of 24 June 1998).
However, the “Basket 2” reference had also been retained before the proposed Notes on the
definition of refining and of chemical reactions had also been retained.
To finalize the template in Doc. 42.574, the members of the Technical Committee were
invited to make any proposed amendment they wished to include.
The Technical Committee took note, and decided to make the following amendments to Issue
No. 45 of the said document:
Option A, paragraph 5 (a) and 5 (b), first indent, sentence in brackets: delete “(removal of the
fatty acids from the oil)” and substitute “(removal of the free fatty acids from the oil)”.
Option B, paragraph 14: delete “refining is done to remove impurities such as solids and fatty
acids from the crude oils” and substitute “refining is done to remove impurities such as solids and free
fatty acids from the crude oils”.
The Technical Committee also decided to delete paragraphs 18 to 25 of Doc. 42.574 and to
confirm referral of Issue No. 115 to the Committee for decisions.
To keep the Committee informed of these amendments, the Technical Committee decided to
submit for decision a new template containing Issue No. 45 in Doc. 42.574, as amended at the present.
This new template would be Doc. 42.574/Cor. of 28 May 1999.  The other amendments would be
included in Annex C/2 to the Report of the 17th Session of the Technical Committee and in the new
version of the Consolidated Text.
Moreover, the issue of determining the origin of mixtures classified in Chapter 15 was
submitted to the Committee for decision, under cover of a separate template dealing solely with the
issue of mixtures in certain Chapters of the agricultural sector (see Doc. OC0028, Issue No. 123).
Finally, the Technical Committee took note of the origin criteria proposed by Singapore to
determine the origin at residual level on the basis of the added value.G/RO/37/Add.1
Page 32
Chapters 18 and 19
The Technical Committee decided to submit to the Committee for decision the issue of
determining the origin of goods classified in the headings and subheadings of Chapter 18 obtained
from materials classified in the same headings or subheadings.  The process for obtaining thesemixtures did not result in a change of classification in the HS Nomenclature.
In the template (Doc. OC0028) submitted to the Committee for decision, by the Technical
committee, a footnote indicated that, as it covered the same problem, Issue No. 124 was valid for both
heading 19.01 and Chapter 18.
Chapter 20
For the juices classified in heading 20.09, where the primary rule was not met, the following
residual rule should be applied: “The origin shall be the country whose inputs represent over 70 % by
volume.  If this percentage is not reached, the origin shall be the country of the products accounting
for the largest percentage by volume“ (AUS).
Chapter 24
The Technical Committee decided to submit to the Committee for decision the issue of
determining the origin of mixtures of tobacco of different origins, classified in headings 24.01 and
24.03 (see Doc. OC0028, Issue No. 125).G/RO/37/Add.1
Page 33
ANNEX C/2
AGREED RULES OF ORIGIN SUBMITTED BY THE
TECHNICAL COMMITTEE ON RULES OF ORIGIN
FOR ENDORSEMENT BY THE
COMMITTEE ON RULES OF ORIGIN –
DESIGNATED AS “BASKET 1”
UNRESOLVED ISSUES FOR DECISION BY THE
COMMITTEE ON RULES OF ORIGIN
CHAPTERS 1 – 24G/RO/37/Add.1
Page 34CHAPTER 1
[General criteria to be used for Chapter Residual rules
For Chapter 2 to 24 : total value of the components, ta king account of the related transformation operations (CH)
For Chapters 1, 2 and 4 to 24 : weight or volume criterion, as applicable (NZ)]
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 1 Live animals
01.01 Live horses, asses, mules and
hinnies[The country of origin of the goods of this
heading shall be the country in which the animalwas born (CH) (JPN) (PHI) (MAL) (CAN)
(MEX) (US) (ARG) (NZ) (FIJ)(AUS)]Submitted to CRO for decision
(Doc. 42.146, Issue 1).
[ The country of origin of the goods of this
heading shall be the country in which the animal
was born and raised (EC) ]Please note that, in principle, only the issue
relating to the last stage of processing is always
indicated in column E. So e.g. for sausages theissues of raising of animals is not mentioned,because it was already relevant in earlier stagesof production. (Sec)G/RO/37/Add.1
Page 35CHAPTER 2
Chapter Residual rule
[Where the origin of the goods cannot be determined by applying the primary rules.  For this chapter the origin shall be the co untry in which the animals were slaughtered
(CAN)]
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 2 Meat and edible meat offal
02.01 Meat of bovine animals, fresh
or chilled.[The country of origin of the goods of this
heading shall be the country in which the animalwas born (SEN) (ARG)]Submitted to CRO for decision
(Doc. 42.146, Issue 2).
[CC (CAN) (JPN) (US) (MEX) (MAL) (AUS)(CH)]
[The country of origin of the goods of this
heading shall be the country in which the animal
was fattened from a weight of 330 kg or less to aweight of 450 kg or more; orthe country in which the animal was born (PHI)]
[The country of origin of the goods of thisheading shall be the country in which the animal
was fattened for 6 or more months before
slaughtering; orthe country in which the animal was born(KOR)]G/RO/37/Add.1
Page 36CHAPTER 3
Chapter Residual rule
[Where origin cannot be cannot be conferred on the goods by applying the primary rules.  For this chapter the country of origin  shall be determined by the place of capture or, if
this criterira is not met, by the weight (NZ)]
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 3 Fish and crustaceans, molluscs
and other aquati c invertebrates
03.01 Live fish. As indicated for split headings
ex03.01(a) Ornamental fish [The country of origin of the goods of this split
heading shall be the country in which theornamental fish was raised for at least 1 month;or
the country in which they have been captured
(MAL)]Submitted to CRO for decision
(Doc. 42.146, Issue 8 and Doc. 42.146/Cor).G/RO/37/Add.1
Page 37CHAPTER 4
Chapter Residual rule
[Where the origin of a mixture of dairy produce cannot be determined by applying the primary rules for this Chapter, the origin  shall be the country where the mixing took place,
provided that the inputs originating in that country represent at least 80 % by weight of the milk used.  If not, the origin sh all be the country accounting for the largest percentage
of milk by weight non-originating (CAN)]
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 4 Dairy pro duce; birds' eggs;
natural honey; edible products
of animal origin, not elsewhere
specified or included.
04.01 Milk and cream, not
concentrated nor containingadded sugar or othersweetening matter.The country of origin of the goods of this
heading shall be the country in which the milk isobtained in its natural or unprocessed state.Basket 1 (approved by CRO).
04.02 Milk and cream, concentrated
or containing added sugar orother sweetening matter.As specified for split headings
ex 04.02 (a)  Coffee creamer [The country of origin of the goods of this split
heading shall be the country in which the milk is
obtained in its natural or unprocessedstate.(CAN) (EC) (KOR) (US (MEX) (ARG) ]Submitted to CRO for decision
(Doc. 42.146, Issue 16).
[ CTH (AUS)(COL)(JPN) (MAL) (NZ)]
[ CTHS (HK)]G/RO/37/Add.1
Page 38CHAPTER 5
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 5 Products of animal origin, not elsewhere
specified or included
05.01 Human hair, unworked, whether or not washed
or scoured; waste of human hair.CC Basket 1 (Endorsed by CRO).
05.02 Pigs', hogs' or boars' bristles and hair; badger
hair and other brush making hair; waste of
such bristles or hair.CC Basket 1 (Endorsed by CRO).
05.03 Horsehair and horsehair waste, whether or not
put up as a layer with or without supporting
material.CC Basket 1 (Endorsed by CRO).
05.04 Guts, bladders and stomachs of animals (other
than fish), whole and pieces thereof, fresh,chilled, frozen, salted, in brine, dried orsmoked.CC Basket 1 (Endorsed by CRO).G/RO/37/Add.1
Page 39CHAPTER 6
Chapter Residual rule
[Where the floral compositions of subheading ex 06.03(a) or ex 06.04(a) are made from materials of various origins, the origin of the composition shall be the country in which it
was made (CAN)]
HS Code number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 6 Live trees and other plants; bulbs, roots and the
like; cut flowers and ornamental foliage.
06.01 Bulbs, tubers, tuberous roots, corms, crowns
and rhizomes, dormant, in growth or in flower;
chicory plants and roots other than roots of
heading No. 12.12.As specified for
subheadings
0601.10 Bulbs, tubers, tuberous roots, corms, crowns and
rhizomes, dormantThe country of origin
of the goods of thissubheading shall be thecountry in which thegoods are obtained in
their natural or
unprocessed stateBasket 1 (Endorsed by CRO).G/RO/37/Add.1
Page 40CHAPTER 7
Chapter Note : [Origin criteria for mixtures classified in subheadings 0710.90, 0711.90 or 0712.90 (CAN)]  Submitted to CRO for decision  (Doc. OC0028,  Issue N° 121)
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 7 Edible vegetables and certain roots and tubers.
07.01 Potatoes, fresh or chilled. The origin of the goods
shall be the country in
which the goods of thisheading are obtained intheir natural orunprocessed stateBasket 1  (Endorsed by CRO).
07.02 Tomatoes, fresh or chilled. The origin of the goods
shall be the country in
which the goods of this
heading are obtained intheir natural orunprocessed stateBasket 1 (Endorsed by CRO).
07.03 Onions, shallots, garlic, leeks and other
alliaceous vegetables, fresh or chilled.The origin of the goods
shall be the country inwhich the goods of this
heading are obtained in
their natural orunprocessed stateBasket 1 (Endorsed by CRO).G/RO/37/Add.1
Page 41CHAPTER 8
Chapter Note
[Origin criteria for mixtures classified in subheading 0813.50 (CAN)  Submitted to CRO for decision (Doc. OC0028, Issue No. 121)
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 8 Edible fruit and nuts; peel of citrus fruit or
melons.
 08.01 Coconuts, Brazil nuts and cashew nuts, fresh or
dried, whether or not shelled or peeled.The origin of the goods
shall be the country inwhich the goods of thisheading are grown andharvestedBasket 1 (Endorsed by CRO).
- Coconuts: As specified for
heading
0801.11 -- Desiccated
0801.19 -- Other
- Brazil nuts:
0801.21 -- In shell
0801.22 -- Shelled
- Cashew nuts:G/RO/37/Add.1
Page 42CHAPTER 9
Chapter Notes:  [ Origin criteria for mixtures/blending of coffee of diverse origins 1]  Submitted to CRO for decision (Doc. OC0028, Issue No. 122)
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 9 Coffee, tea, maté and spices
09.01 Coffee, whether or not roasted or decaffeinated;
coffee husks and skins; coffee substitutescontaining coffee in any proportionProposals as specified
for subheadings
- Coffee, not roasted :
0901.11 -- Not decaffeinated The country of origin
of the goods of thissubheading shall be
the country in which
the plant grewBasket 1 (Endorsed by CRO).
                                                     
1 The particular cases of the mixtures referred to in Note 1 (b) to Chapter 9 (HS Note) have already been submitted to the CRO f or decision (Doc.42.146, Issue 36).G/RO/37/Add.1
Page 43CHAPTER 10
Chapter Residual Note
[Where the origin of a mixture of cereals cannot be determined by  applying the primary rules for this chapter, the origin shall  be the country in which the mixing took place,
provided that the inputs originating in that country represent at least 85 % by weight of the cereals used non-originating (CAN )]
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 10 Cereals.
10.01 Wheat and meslin. The origin shall be the
country where goodsof this heading areobtained in theirnatural or unprocessedstateBasket 1  (Endorsed by CRO).
10.02 Rye. The origin shall be the
country where goods
of this heading areobtained in theirnatural or unprocessedstateBasket 1 (Endorsed by CRO).
10.03 Barley. The origin shall be the
country where goods
of this heading are
obtained in theirnatural or unprocessedstateBasket 1 (Endorsed by CRO).
10.04 Oats. The origin shall be the
country where goodsof this heading are
obtained in their
natural or unprocessedstateBasket 1 (Endorsed by CRO).
10.05 Maize (corn). The origin shall be the
country where goodsof this heading areobtained in theirnatural or unprocessed
stateBasket 1 (Endorsed by CRO).G/RO/37/Add.1
Page 44HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
10.06 Rice. The origin shall be the
country where goodsof this heading areobtained in theirnatural or unprocessedstateBasket 1  (Endorsed by CRO).G/RO/37/Add.1
Page 45CHAPTER 11
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 11 Products of the mill ing industry; malt; starches;
inulin; wheat gluten.
11.01 Wheat or meslin flour. CC Basket 1 (Endorsed by CRO).
11.02 Cereal flours other th an of wheat or meslin. CC Basket 1 (Endorsed by CRO).
11.03 Cereal groats, meal and pellets. CC Basket 1 (Endorsed by CRO).
11.04 Cereal grains otherwise worked (for example,
hulled,  rolled, flaked, pearled, sliced or kibbled),
except rice of  heading No. 10.06; germ of
cereals, whole, rolled, flaked  or ground.CC Basket 1 (Endorsed by CRO).G/RO/37/Add.1
Page 46CHAPTER 12
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 12 Oil seeds and oleaginous fruits; miscellaneous
grains, seeds and fruit; industrial or medicinalplants; straw and fodder.
12.01 Soya beans, whether or not broken. The origin shall be the
country where goods
of this heading are
obtained in theirnatural or unprocessedstateBasket 1  (Endorsed by CRO).
12.02 Ground-nuts, not roasted or otherwise cooked,
whether or  not shelled or broken.The origin shall be the
country where goodsof this heading are
obtained in their
natural or unprocessedstateBasket 1 (Endorsed by CRO).
12.03 Copra. The origin shall be the
country where goodsof this heading areobtained in their
natural or unprocessed
stateBasket 1  (Endorsed by CRO).
12.04 Linseed, whether or not broken. The origin shall be the
country where goodsof this heading areobtained in theirnatural or unprocessed
stateBasket 1 (Endorsed by CRO).G/RO/37/Add.1
Page 47CHAPTER 13
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code Number Description of Goods Origin Criteria Notes Comments
AB C D E
Chapter 13 Lac; gums, resins and other vegetable saps and
extracts
13.01 Lac; natural gums, resins, gum-resins and
oleoresins (for example, balsams).[CC (CAN) (US)
(MEX) (JPN) ]Submitted to CRO for decision
(Doc. 42.146, Issue 39).
[The country of  originof the goods of this
heading shall be the
country in which theplant grew (PHI)(EC)(CH)(KOR) ]
13.02 Vegetable saps and extracts; pectic substances,
pectinates and pectates; agar-agar and other
mucilages and thickeners, whether or not
modified, derived from vegetable products.As specified at split
heading levelG/RO/37/Add.1
Page 48CHAPTER 14
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and abo ve the general proposals made for agricul tural products.
HS Code Number Description of goods Origin Criteria Notes Comments
AB C D E
Chapter 14 Vegetable plaiting materials; vegetable products
not elsewhere specified or included
14.01 Vegetable materials of a kind used primarily for
plaiting (for example, bamboos, rattans, reeds,rushes, osier, raffia, cl eaned, bleached or dyed
cereal straw, and lime bark).As specified for
subheadings
1401.10 - Bamboos [The country of origin
of the goods of thissubheading shall be thecountry in which theplant grew (PHI) (EC)(CH) (KOR)
[CC (CAN) (US)
(MEX) (JPN)Submitted to CRO for decision
(Doc. 42.146, Issue 40).
1401.20 - Rattans As specified for split
subheadingG/RO/37/Add.1
Page 49CHAPTER 15
Chapter Notes:
Mixtures   Submitted to CRO for decisi on  (Doc. OC00 28, Issue No. 123)
[For the purposes of [headings 15.07 to 15.15] [Chapter 15] :
(a) The deliberate and proportionally controlled mixing or blending (including dispersing) of materials to conform to predetermi ned specifications which results in the
production of a good having attained new physical or chemical characteristics in terms of taste, odour  or purity and use diffe rent from the input materials is considered to be
origin conferring.
(b) However, the addition of diluents only is to be disregarde d in determining the origin of the good. (SG) (CH) (NOR) ]
2.  Definition of the term “refining”   Submitted to CRO for decision (doc. 42.574/Cor, Issue No. 45)
[Refining (chemically or physically) is considered to be the last substantial transformation if at least :
(a) all the following operations are carried out on crude oils in a single country :
- neutralization with alkali or de-acidification (removal of the free fatty acids from the oil):
- decolorizing (removal of colouring substances); and- deodorizing (separation of the volatile odorous and flav ourous substances by distillation )  (AUS, EC, EG
Y 1, MEX, JPN 2)
(b)  three of the following operations are carried out on crude oils 3 in a single country :
- Neutralization with alkali or de-acidification (removal of the free fatty acids from the oil);
- Decolorizing (removal of colouring substances);Deodorizing (separation of the volatile odorous and flavourous substances by distillation);- Stabilization (CH, NOR, SG, TH)]
                                                     
1 EGY considers that there is also substantial transformation when  the operations mentioned in 2(a) relate to refined oils of he adings 15.04, 15.07, 15.11, to 15.13
or 15.15.
2 JPN considers obtaining refined fats from crude fats also constitutes a substantial transformation.
3 CH considers that there is also a substantial transformation when  the operations mentioned in 2(b) relate to refined oils of h eading 15.04 or 15.15.G/RO/37/Add.1
Page 503.  Definition of “chemical reaction” for the purposes of headings 15.16 and 15.18  Submitted to CRO for decision (Doc. 42.574, Issue No. 115)
[For the purposes of headings 15.16 and 15.18, a chemical reaction is defined as follows :
“A chemical reaction is a process (including a biochemical proce ss) which results in a molecule with a new structure by breakin g intramolecular bonds and by forming new
intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.
The following are not considered to be chemical reactions for the purposes of this definition :(1) Dissolving in water or other solvents;
(2) The elimination of solvents including solvent water; or
(3) The addition or elimination of water of crystallization “ (EC)]
Chapter residual rule
[The CIF value of non-originating materials imported and used in the production does not exceed 75 % of the ex-factory price of  the goods.
The method of calculating foreign content is as follows:
FC = CIF value of NORM x 100%  75%
Ex-factory price
FC: foreign contentNORM: Non-originating raw materials
Ex-factory price = Total materials cost + Direct  labour costs + Overhead costs + Profit (SG)]G/RO/37/Add.1
Page 51HS Code Number Description of goods Origin Criteria Notes Comments
AB C  D E
ex 15.21 (a) Vegetable waxes, beeswax, other insect waxes,
refined[CTHS (CH) (EC)
(EGY) (NOR)]
[CTH (JPN) (KOR)
(MAL) (TH)]
[CC (CAN) (MEX)
(PHI) (US)]Submitted to CRO for decision
(Doc. 42.571/Cor., Issue No. 45)G/RO/37/Add.1
Page 52CHAPTER 16
Chapter Notes :
1.(a) [Changes to this Chapter from Chapter 2 or 3 merely by a ddition of seasoning or preservativ es are not considered as subst antial transformation (US) (CAN) (COL) (PHI)
(KOR) (MEX) (MOR)  Submitted to CRO for decision (Doc. 42.146, Issues No. 49 and 50) .
     (b) [Changes to goods in this chapter from any other head ing merely by addition of seasoning or preservatives or curing an d/or smoking and cooking of such products are
not considered as substantial transformation (AUS] Submitted to CRO for decision (Doc. 42.146, Issues 49, 50) .
2. [Food preparations of agricultural products of Chapters 16 to 21 are defined on the basis of one of the following two criter ia :
(a) Products to be consumed directly by the ultimate purchaser and normally sold to the ultimate purchaser in places such as de partment stores, supermarkets, conventional
markets, etc.
(b) Intermediate products which meet one of the following requirements and are to be used in the food industry:
(i) Products made through processes which are commonly used for manufacturing the intermediate products for the food industry fo r the purpose of enhancing the
suitability for mechanical production and lowering production costs in subsequent processes.
(ii) Products whose ingredients are homogenized so that the said  ingredients are not technically separable or economically possi ble.
(iii)        Products which are transformed into those with es sential character as specific prep ared products through the addit ion of material or a component, regardless of the
quality of the added material or component. (KOR)] Submitted to CRO for decision (Doc. 42.146, Issue No. 49) .
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.G/RO/37/Add.1
Page 53CHAPTER 17
Chapter Notes :
[Food preparations of agricultural products of Chapters 16 to 21 are defined on the basis of one of the following two criteria :
(a) Products to be consumed directly by the ultimate purchaser and normally sold to the ultimate purchaser in places such as de partment stores, supermarkets, conventional
markets, etc.
(b) Intermediate products which meet one of the following requirements and are to be used in the food industry:
(i) Products made through processes which are commonly used for manufacturing the intermediate products for the food industry fo r the purpose of enhancing the
suitability for mechanical production and lowering production costs in subsequent processes.
(ii) Products whose ingredients are homogenized so that the said  ingredients are not technically separable or economically possi ble.
(iii) Products which are transformed into those with essential ch aracter as specific prepared products through the addition of m aterial or a component, regardless of the
quality of the added material or component. (KOR)] Submitted to CRO for decision (Doc. 42.146, Issue No. 49).
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.G/RO/37/Add.1
Page 54CHAPTER 18
Chapter Note
1. [Origin criteria for mixtures classified in Chapter 18 (CAN)]  Submitted to CRO for decisi on (Doc. OC002 8, Issue No. 124)
2. [Food preparations of agricultural products of Chapters 16 to 21are defined on the basis  of the following two criteria :
(a) Products to be consumed directly by the ultimate purchaser and normally sold to the ultimate purchaser in places such as de partment stores, supermarkets, conventional
markets, etc.(b) Intermediate products which meet one of the following requirements and are to be used in the food industry:
(i) Products made through processes which are commonly used for manufacturing the intermediate products for the food industry fo r the purpose of enhancing the
suitability for mechanical production and lowering production costs in subsequent processes.
(ii) Products whose ingredients are homogenized so that the said  ingredients are not technically separable or economically possi ble.
(iii) Products which are transformed into those with essential ch aracter as specific prepared products through the addition of m aterial or a component, regardless of the
quality of the added material or component.  (KOR)] ] Submitted to CRO for decision  (Doc. 42.146, Issue No . 49).
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.G/RO/37/Add.1
Page 55CHAPTER 19
Chapter Notes
1. [  Origin criteria for mixtures classified in heading 19.01 1, (CAN)] submitted to CRO for decisi on (Doc. OC002 8, Issue No. 124)
2. Food preparations of agricultural products of Chapters 16 to 21are defined on the basis of one of the following two criteria .
(a) Products to be consumed directly by the ultimate purchaser and normally sold to the ultimate purchaser in places such as de partment stores, supermarkets, conventional
markets, etc.(b) Intermediate products which meet one of the following requirements and are to be used in the food industry:
(i) Products made through processes which are commonly used for manufacturing the intermediate products for the food industry fo r the purpose of enhancing the
suitability  for mechanical production and lowering production costs in subsequent processes.
(ii) Products whose ingredients are homogenized so that the said  ingredients are not technically separable or economically possi ble.
(iii) Products which are transformed into those with essential ch aracter as specific prepared products through the addition of m aterial or a component, regardless of the
quality of  the added material or component.  (KOR)]  Submitted to CRO for decision (Doc. 42.146, Issue No. 49).
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
                                                     
1 Concerns mixtures produced within heading 19.01 w ithout entailing a change of tariff classificationG/RO/37/Add.1
Page 56CHAPTER 20
Chapter Notes
[ Food preparations of agricultural products of Chapters 16 to 21are defined on the basis of one of the following two criteria :
(a) Products to be consumed directly by the ultimate purchaser and normally sold to the ultimate purchaser in places such as de partment stores, supermarkets, conventional
markets, etc.(b) Intermediate products which meet one of the following requirements and are to be used in the food industry:
(i) Products made through processes which are commonly used for manufacturing intermediate products for the food industry for th e purpose of enhancing the suitability
for mechanical production and lowering production costs in subsequent processes.(ii) Products whose ingredients are homogenized so that the said  ingredients are not technically separable or economically possi ble.
(iii) Products which are transformed into those with essential ch aracter as specific prepared products through the addition of m aterial or a component, regardless of the
quality of the added material or component. (KOR)] Submitted to CRO for decision (Doc. 42.146, Issue No. 49).
Chapter Residual rule
[Where the origin of mixtures of fruit juices of heading 20.09 cannot be determined by applying the primary rules for this Chap ter, the origin shall be the country whose inputs
representing over 70 % by volume.  If this per centage is not reached, the origin shall be the  country of the products accounting for the largest percentage by volume.
(AUS)]G/RO/37/Add.1
Page 57CHAPTER 21
Chapter Note :
[Food preparations of agricultural products of Chapters 16 to 21 are defined on the basis of one of the following two criteria :
(a)  Products to be consumed directly by the ultimate purchaser and normally sold to the ultimate purchaser in places such as d epartment stores, supermarkets, conventional
markets, etc.
(b)  Intermediate products which meet one of the following requirements and are to be used in the food industry:(i) Products made through processes which are commonly used for manufacturing intermediate products for the food industry for th e purpose of enhancing the suitability
for mechanical production and lowering production costs in subsequent processes.
(ii) Products whose ingredients are homogenized so that the said  ingredients are not technically separable or economically possi ble.
(iii)     Products which are transformed into those with esse ntial character as specific prepared products through the addition  of material or a   component, regardless of the quality
of the added material or component. (KOR)] Submitted to CRO for decision (Doc. 42.146, Issue No. 49)
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.G/RO/37/Add.1
Page 58CHAPTER 22
Chapter Note
[A de minimis of 10% is essential in heading 22.08 to allow for the use of alcoholic base products in the flavouring of distill ed spirits (CAN)] Submitted to CRO for decision
(Doc. 42.146, Issue No . 107).
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code
NumberDescription of goods Origin criteria Notes Comments
AB C D E
Chapter 22 Beverages, spirits and vinegar
22.01 Waters, including natural or
artificial mineral waters andaerated waters, not containing
added sugar or other
sweetening matter norflavoured; ice and snow.The origin of the goods shall be the country in
which the water, ice or snow classified in thisheading are obtained in their natural stateBasket 1 (Endorsed by CRO).
2201.10 - Mineral waters and aerated
watersAs specified for heading
2201.90 - OtherG/RO/37/Add.1
Page 59CHAPTER 23
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code number Description of goods Origin criteria Notes Comments
AB C D E
Chapter 23 Residues and waste from the
food industries; prepared
animal fodder
23.01 Flours, meals and pellets, of
meat or meat offal, of fish or of
crustaceans, molluscs or otheraquatic invertebra tes, unfit for
human consumption; greavesCTH Basket 1 (Endorsed by CRO).G/RO/37/Add.1
Page 60CHAPTER 24
Chapter Note :
[For the purposes of headings 24.01 and 24.03, any deliberate an d proportionally controlled mixing or blending of tobacco resul ting in a product with a determinated composition
confers origin (SEN)]  Submitted to CRO for decision  (Doc. OC0028,  Issue No. 125)
Chapter Residual rule
Secretariat Note
There were no specific proposals for this Chapter over and ab ove the general proposals made for agricultural products.
HS Code
NumberDescription of goods Origin criteria Notes Comments
AB C D E
Chapter 24 Tobacco and manufactured
tobacco substitutes
24.01 Unmanufactured tobacco;
tobacco refuse.As specified for subheadings
2401.10 - Tobacco, not stemmed/stripped The origin of the goods shall be the country in
which the tobacco and tobacco substitutes ofthis subheading are obtained in their natural or
unprocessed stateBasket 1 (Endorsed by CRO).
2401.20 - Tobacco, partly or wholly
stemmed/strippedThe origin of the goods shall be the country in
which the tobacco and tobacco substitutes ofthis subheading are obtained in their natural orunprocessed stateBasket 1 (Endorsed by CRO).G/RO/37/Add.1
Page 61
ANNEX D/1
AGENDA ITEM IV. 2. Chapters 50-63;
Textile-related Articles
Working Documents Consolidated Text; Referral Doc. 42.271;
Referral Doc. 42.269
Texts adopted reproduced in Annex D/2
Referral Doc. OC0023
VIEWS AND DECISIONS OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
The Technical Committee examined the unresolved  issues for Chapters 50 to 63, including
proposed section notes and residual rules, using the consolidated text, draft templates and the
documents referred in the Draft Agenda.
The texts amended during the examination are set forth in Annex D /2 to this Report.
As a result of the discussions, unresolved issues were prepared as templates and have been
presented in Referral Doc. OC0023.
Section Notes
The Technical Committee examined whether or not the proposed Notes in Section XI on (1)
textile (yarn and fabric) making processes; and (2) minor processing operations not affecting origin
which had been retained in Basket 2,  should be maintained.
The Technical Committee decided to delete the Section Note on yarn and fabric making
processes.
Concerning the Section Note on minor processing operations not affecting origin, the
Technical Committee was not able to reach agreement.  The Committee instructed the Secretariat to
draw up a template on the issue for decision by the Committee on Rules of Origin.
The Committee took note that the proposed note would apply across the
Section XI and apply to made up articles of Chapters 42 and 43.
Combination of  ex 50.07 (a) and (c)
The TCRO was informed that the split heading ex 50.07 (a) should be combined with 50.07
(c) because, by subsequent decision of the Committee, two split headings are included in Basket 1
together.  The Technical Committee took note of this , and arranged the Consolidated Text for heading
50.07 into two split headings; (a) woven fabrics of silk or of silk waste; printed, dyed (including dyed
white) (b) other.
Residual rule for the assembly of articles of apparel and clothing accessories
With regard to the necessity for residual rules and the contents of the rules at a Chapter level
for assembly of articles of apparel and clothing accessories of Chapters 61 and 62 from parts for the
goods, several delegations expressed their opinions.G/RO/37/Add.1
Page 62
 Some delegations recognized the necessity of the residual rules and suggested concrete
proposals but several delegations did not recognize the necessity to make a residual rule.
Thus, the Committee decided that the Secretariat should make a template for decision of the
Committee on Rules of Origin.
The putting up in packings for retail sale of sets classified in heading 63.08
Concerning whether the putting up in packings fo r retail sale of sets classified in heading
63.08, consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs,
tapestries, embroidered table clothes or serviettes, or similar textile articles, result in substantial
transformation, the opinions of the Technical Committee remained divided.
Some delegations recognize the change of a tariff classification from goods of other headings
to a set of this heading as substantial transformation without any other condition but other delegations
insisted that a limited amount of non-originating materials is used or that merely putting up a set of
heading 63.08 is not origin conferring.
The Secretariat was instructed to prepare a new template requesting the decision of the
Committee on Rules of Origin.
Necessity for Chapter Residual Rules for goods of HS Section XI (Textiles and Textile Articles) and
Textile Related Goods of other HS Chapters
One delegation assumed that there will be cases in the textile sector in which the primary
rules will not produce an origin result and, thus, the delegation proposed the Chapter residual rules for
goods of Chapters 50 to 60 be determined on the basis of where the textile fabric was woven or
knitted.
Another delegation considered that the general residual rules at Appendix 2 are sufficient for
the purpose and, in cases where the applicable primary rule is not met, the arrangement of the
architecture will direct to a single rule in which is applied the appropriate residual rule criterion
designated for the relevant Chapter.
Assembly of products of Chapter 61 and 62
India informed the Technical Committee about its position on assembly of goods of Chapter
61 and 62.  The rule proposed is:
For the purposes of Chapter 61 and 62, the country of origin of an article of
apparel or clothing accessories shall be the country where such apparel or clothing
accessory, as the case may be, is finally assembled.
This delegation clarified further:
“Final assembly means where the article assumes the essential character of the
final product and thereby gets classified as the final product.  Further operations
which do not change the classification will not change the origin”.
This position will also be reflected in the next update of the Consolidated Text.G/RO/37/Add.1
Page 63
The Secretariat was instructed to prepare a new template requesting the decision of the
Committee on Rules of Origin.
The Referral Document containing all the templates is issued as Doc. OC0023.G/RO/37/Add.1
Page 64
ANNEX D/2
UNRESOLVED ISSUES FOR DECISION BY THE
COMMITTEE ON RULES OF ORIGIN
CHAPTERS 50 - 63
Textiles related products of Chapters 64-66G/RO/37/Add.1
Page 65Chapters 50 to 63
(Textiles and Textile Articles)
Section Note : (Submitted to CRO for decision) (See Issue No. 74 Doc. OC0023)
[Minor processing operations not affecting origin.  For the purpos es of determining the country of origin for goods falling wit hin Section XI  that are not wholly
obtained in one country, the following individual processes, consid ered singly, shall not affect the origin of the goods concer ned, whether or not such processes
result in changes of classification:
(a) Working or finishing one or more edges by hemming, rolling, whipping or similar means or by knotting fringe;
(b) Cutting fabrics, yarns or other textile materials; or separating goods produced in the finished state by cutting along divid ing threads;
(c) Assembling or joining goods by sewing or stitching fo r convenience of shipment or other temporary purposes;
(d) Putting up goods for retail sale or in sets or ensembles   (US)]
Chapter Residual Rules (for Chapters 50 to 60) : (Submitted  to CRO for decision) (See Issue No. 77 -  Doc. OC0023)
[The country of origin of a fabric of this Chapter shall be the country where the textile fabric was knitted or woven (CAN)]G/RO/37/Add.1
Page 66Chapter 58
Chapter Residual Rules : (Submitted to CRO for decision) (See Annex to Doc. OC0023)
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin, the country of origin shall be determined as follows:
[1. The country of origin of quilted fabrics of heading 58.11 of this Chapter shall be the country in which the exterior textile  fabric was formed, or in the case
of a good containing textile fabrics of more than one country,  the origin of the good is the country in which the exterior tex tile fabric that predominates by weight
was formed (US]G/RO/37/Add.1
Page 67CHAPTER 59
Chapter Residual Rules : (Submitted to CRO for decision) (See Annex to Doc. OC0023)
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin, the country of origin shall be determined as follows:
[1. The country of origin of fabrics of this Chapter, except textile wall coverings of heading 59.05, shall be the country where  the textile fabric was formed,
or in the case of a good containing textile fabrics of more than one country,  the origin of the good is the country in which t he textile fabric that predominates by
weight was formed (US)]G/RO/37/Add.1
Page 68Chapter 61 *
Chapter Notes : (Submitted to CRO for decision) (See Issue No. 46 Doc. 42.271)
[1. / OPTION 1
For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single country” means that all of the assembly operations following the
cutting of the fabric ,or the knitting or crocheting to shape, of the parts have been performed in that country.
(b) For the purposes of paragraph (a) performing or not performi ng operations such as the following shall not affect the determi nation of whether the good has been
assembled in a single country: attaching: items such as accessories, buttons and/or other fasteners, pockets, trimmings, cuffs,  plackets, labels, [collars (JPN, PHI, MAL,
CH,NOR)]; making button holes, hemming. (EC, JPN, PHI, MAL, TUR, CH, NOR,FIJ,CR)]
[1/ OPTION 2
(a) For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single country” means that all of t he assembly operations
following the cutting of the fabric to shape of the parts have been performed in that country.
(b) For the purposes of paragraph (a) performing or not performing  operations such as the following shall not affect the determi nation of whether the good
has been assembled in a single country: [attaching and/or maki ng up of the following, for exam ple (HK)] [attaching to garments or accessories (US)] :  buttons
and other fasteners, patch pockets, foot straps, trimmings, ornaments, cuffs, plackets, belt loops, epaulettes, labels, [collar s (US) (HK)], [lining, padding,
pockets other than patch pockets, waist bands, garment accessories, facings, self belts, pleats (HK)];making button holes, hemm ing, [pressing, stone or acid
washing (US) (HK)] (US, MEX, HK, SEN, GUA, EGY,AUS)]
[1/ OPTION 3
For the purpose of this chapter, and subject to paragraph (b), “both cut or knitted or crocheted to shape and sewn or otherwise  assembled in the country claiming
origin” means that all of the assembly operations along with the cutting of the fabric, or the knitting or crocheting to shape , of the parts have been performed in
that country.
(b)For the purpose of paragraph (a) performing or not performing operations such as the following shall not affect the determin ation of whether the good has
been assembled in a single country: attaching:  buttons and other fasteners, patch pockets, foot straps, trimmings, ornaments, cuffs, plackets, belt loops,
epaulettes, labels, collars, padding a nd waist bands. (NZ, BRA, ARG, PAK)]
                                                     
* There is an agreement in the TCRO that the change in use of the goods is not origin conferring process.G/RO/37/Add.1
Page 69 [1/OPTION 4
For the purposes of this chapter, except for goods knitted or crocheted to shape, the term “substantial assembly” means sewing together or assembly of all the
major garment parts of a good of this chapter.
(b) For the purposes of this chapter “major garment parts” means integral components of a garment, but does not include parts su ch as collars, cuffs,
waistbands, plackets, pockets, linings, paddings or accessories. (CAN)]
[1/OPTION 5
For the purposes of Chapters 61 and 62, the country of origin of an article of apparel or clothing accessories shall be the cou ntry where such apparel or clothing
accessory, as the case may be, is finally assembled.  Final assembly means where the article assumes the essential character of  the final product and thereby gets
classified as the final product.  Further operations which do not change the classification will not change the origin (IND)]
Chapter residual rules (Submitted  to CRO for decision) (See Issue No. 75 Doc. OC0023)
[2/OPTION 1
When no country satisfies the primary rule determining the origin  of the assembly of articles of apparel and clothing accessori es of heading 61.01 to 61.15 and
62.01 to 62.12 from parts for the goods, the country in which 8 or more major or other parts of the goods are assembled shall b e the country of origin for the
goods.  (CAN)]
[2/OPTION 2
When application of the primary rules of Chapters 61 and 62 (including the product specific rules provided in the matrix) do no t result in a determination of a
country of origin, the country of origin shall be determined as follows:
“Where the primary rule for a good assembled from parts requires that the good be wholly assembled in a single country, the cou ntry of origin
of such a good that was not wholly assembled in a single country, is the country in which the most significant assembly operati ons were
performed in the making-up of the good, without regard to the addition of buttons and other fasteners, belt and hanger loops, b elts, patch
pockets, labels, foot straps, epaulettes, ornaments and other minor components”. (US)]G/RO/37/Add.1
Page 70[2/OPTION 3
When the above 2/OPTION 2 conditions are not satisfied, the country of origin of goods of chapter 61 and 62 shall be the countr y where the textile fabric or knit-
to-shape components was formed, or in the case of a good containing textile fabrics or knit-to-shape component of more one coun try, the origin of the good is the
country in which the textile fabric or knit-to-shape component that predominates by weight was formed.   (US)]
[2/OPTION 4
When application of the primary rules of Chapters 61 and 62 (including the product specific rules provided in the matrix) do no t result in a determination of a
country of origin, the country of origin shall be determined as follows :
“Where the primary rule for a good assembled from parts requires that the good be wholly assembled in a single country, the cou ntry of origin of such a good that
was not wholly assembled in a single country, is the country in which the most significant assembly operations were performed i n the making-up of the good,
without regard to:
- attaching and/or making up of the following, for example: butto ns and other fasteners, patch pockets, foot straps, trimmings,  ornaments, cuffs, plackets, belt
loops, epaulettes, labels, collars, lining, padding, pockets other than patch pockets, waistbands, garment accessories, facings , self belts, pleats;
- making button holes, hemming, pressi ng, stone or acid washing.  (HK)]
[2/OPTION 5
For the determination of the assembly of articles of apparel and clothing accessories of headings 61.01 to 61.15 and 62.01 to 6 2.12 from parts for the goods,
specific residual rules are not necessary.  When the primary rules provided for assembled articles of Chapter 61 and 62 are not  satisfied, the origin of such articles
should be determined by application of the general residual rules set forth in Appendix 2, Rule 2. (EC, CH) The criterion to be  used in this context is value. (EC)]
 [2/OPTION 6
The criterion for this residual rule should be country contributin g most to the total value of the good in terms of total parts  and related processing activities. (CH)]G/RO/37/Add.1
Page 71Chapter 62 *
Chapter Note : (Submitted to CRO for decision) (See Issue No. 46 Doc. 42.271)
[1. / OPTION 1
(a) For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single country” means that all of t he assembly operations
following the cutting of the fabric, or the knitting or crocheti ng, to shape of the parts have been performed in that country.
(b)For the purposes of paragraph (a) performing or not performing operations such as the following shall not affect the determi nation of whether the good has
been assembled in a single country: attaching: items such as a ccessories, buttons and/or other fasteners, pockets, trimmings, c uffs, plackets, labels, [collars
(JPN, PHI, MAL, CH, NOR)]; making button holes, hemming. (EC, JPN, PH I, MAL, TUR, CH, NOR, FIJ, CR)]
[1/ OPTION 2
(a) For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single country” means that all of t he assembly operations
following the cutting of the fabric to sh ape have been performed in that country.
(b) For the purposes of paragraph (a) performing or not performin g operations such as the following shall not affect the determi nation of   whether the
good has been assembled in a single country: [attaching and/or making up of the following, for example (HK)] [attaching to garm ents or accessories (US)] :
buttons and other fasteners, patch pockets, foot straps, trimmings, ornaments, cuffs, plackets, belt loops, epaulettes, labels,  [collars (US) (HK)], [lining,
padding, pockets other than patch pockets, waist bands, garment accessories, facings, self belts, pleats (HK)];making button ho les, hemming, [pressing, stone
or acid washing (US) (HK)] (US, MEX, HK, SEN, GUA, EGY,AUS)]
[1/ OPTION 3
For the purpose of this chapter, and subject to paragraph (b), “both cut or knit to shape and sewn or otherwise assembled in th e country claiming origin” means
that all of the assembly operations along with the cutting of th e fabric, or the knitting or crocheting, of the parts to shape have been performed in that country.
(b)For the purpose of paragraph (a) performing or not performing operations such as the following shall not affect the determin ation of whether the good has
been assembled in a single country: attaching:  buttons and other fasteners, patch pockets, foot straps, trimmings, ornaments, cuffs, plackets, belt loops,
epaulettes, labels, collars, padding a nd waist bands. (NZ, BRA, ARG, PAK)]
                                                     
* There is an agreement in the TCRO that  the change in use of the goods is not origin conferring process.G/RO/37/Add.1
Page 72  [1/OPTION 4
For the purposes of this chapter, except for goods knitted or crocheted to shape, the term “substantial assembly” means sewing together or assembly of all the
major garment parts of a good of this chapter.
(b) For the purposes of this chapter “major garment parts” means integral components of a garment, but does not include parts su ch as collars, cuffs, waistbands,
plackets, pockets, linings, paddings, facings or accessories. (CAN)]
[1/OPTION 5
For the purposes of Chapters 61 and 62, the country of origin of an article of apparel or clothing accessories shall be the cou ntry where such apparel or clothing
accessory, as the case may be, is finally assembled.  Final assembly means where the article assumes the essential character of  the final product and thereby gets
classified as the final product.  Further operations which do no t change the classification will  not change the origin. (IND)]
Chapter residual rules (Submitted to CRO for decision) (See Issue No. 75 Doc. OC0023)
[2/OPTION 1
When no country satisfies the primary rule determining the origin  of the assembly of articles of apparel and clothing accessori es of heading 61.01 to 61.15 and
62.01 to 62.12 from parts for the goods, the country in which 8 or more major or other parts of the goods are assembled shall b e the country of origin for the
goods.  (CAN)]
[2/OPTION 2
When application of the primary rules of Chapters 61 and 62 (including the product specific rules provided in the matrix) do no t result in a determination of a
country of origin, the country of origin shall be determined as follows :
“Where the primary rule for a good assembled from parts requires that the good be wholly assembled in a single country, the cou ntry of origin
of such a good that was not wholly assembled in a single country, is the country in which the most significant assembly operati ons were
performed in the making-up of the good, without regard to the addition of buttons and other fasteners, belt and hanger loops, b elts, patch
pockets, labels, foot straps, epaulettes, ornaments and other minor components”. (US)]G/RO/37/Add.1
Page 73[2/OPTION 3
When the above 2/OPTION2 conditions are not satisfied, the country of origin of other goods of chapter 61 and 62 shall be the c ountry where the textile fabric or
knit-to-shape components was formed, or in the case of a good containing textile fabrics or knit-to-shape component of more one  country, the origin of the good
is the country in which the textile fabric or knit-to-shape component that predominates by weight was formed.   (US)]
[2/OPTION 4
When application of the primary rules of Chapters 61 and 62 (including the product specific rules provided in the matrix) do no t result in a determination of a
country of origin, the country of origin shall be determined as follows:
“Where the primary rule for a good assembled from parts requires that the good be wholly assembled in a single country, the cou ntry of origin of such a good that
was not wholly assembled in a single country, is the country in which the most significant assembly operations were performed i n the making-up of the good,
without regard to:
- attaching and/or making up of the following, for example: bu ttons and other fasteners, patch pockets, foot straps, trimmings,  ornaments, cuffs, plackets, belt
loops, epaulettes, labels, collars, lining, padding, pockets other than patch pockets, waistbands, garment accessories, facings , self belts, pleats;
- making button holes, hemming, pressi ng, stone or acid washing.  (HK)]
[2/OPTION 5For the determination of the assembly of articles of apparel and clothing accessories of headings 61.01 to 61.15 and 62.01 to 6 2.12 from parts for the goods,
specific residual rules are not necessary.  When the primary rules provided for assembled articles of Chapter 61 and 62 are not  satisfied, the origin of such articles
should be determined by application of the general residual rules set forth in Appendix 2, Rule 2. (EC, CH) The criterion to be  used in this context is value. (EC)]
 [2/OPTION 6
The criterion for this residual rule should be country contributin g most to the total value of the good in terms of total parts  and related processing activities. (CH)]G/RO/37/Add.1
Page 74CHAPTER 63
Chapter Residual Rules : (Submitted to CRO for decision) (See Annex to Doc. OC0023)
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin, the country of origin shall be determined as follows:
[1. The country of origin of goods of this Chapter shall be the country where the textile fabric was formed, or in the case of a  good containing textile fabrics
of more than one country,  the origin of the good is the country in which the textile fabric that predominates by weight was fo rmed (US)]G/RO/37/Add.1
Page 75Chapter 64
Chapter Residual Rules : (Submitted to CRO for decision) (See Annex to Doc. OC0023)
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin,
[1. The country of origin of a good of heading 64.06 that was assembled from parts, but was not wholly assembled in a single cou ntry, is the country in
which the most significant assembly operations were performed in the making-up of the good, without regard to the addition of b uttons and other fasteners,
hanger loops, labels, foot straps, ornaments and other minor components (US)]G/RO/37/Add.1
Page 76Chapter 65
Chapter Residual Rules : (Submitted to CRO for decision) (See Annex to Doc. OC0023)
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin, the country of origin shall be determined as follows:
[1. For a good of headings 65.01 through 65.05 that was assembled from parts, where the primary rule requires that the good be w holly assembled in a single
country, is the country in which the most significant assembly operations were performed in the making-up of the good, without regard to the addition of buttons
and other fasteners, hanger loops, tighteners, labels , hat bands, ornaments and other minor components (US)]G/RO/37/Add.1
Page 77Chapter 66
Chapter Residual Rules : (Submitted to CRO for decision) (See Annex to Doc. OC0023)
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin, the country of origin shall be determined as follows:
[1. The country of origin of a good of heading 66.01 that was assembled from parts, but was not wholly assembled in a single cou ntry, is the country in
which the most significant assembly operations were performed in the making-up of the good, without regard to the addition of b uttons and other fasteners,
hanger loops, labels, ornaments and other minor components (US)]G/RO/37/Add.1
Page 78
ANNEX E/1
AGENDA ITEM IV. 3. Chapters 82 & 83
Working Documents Consolidated Text; Referral Doc. 42.576;
Referral Doc. 42.511
Texts adopted reproduced in Annex E/2 (not issued)
Referral Doc. OC0025;Referral Doc. OC0026
VIEWS AND DECISIONS OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
The Technical Committee examined the new general draft template prepared by Secretariat
on the production of a finished good or part from an unfinished good or part, including blanks,
covering goods classified in HS chapters 71 to 95.
During the discussion several delegates pointed out that the positions of proponents on blanks
differed from chapter to chapter.  Each chapter had its specificity which could not be dealt with in one
general template.
Thus, the Committee decided that the general template drafted by Secretariat should be  be
divided into separate templates (covering chapters  71, 82-83 and 84-90 respectively)
Concerning the relationship to the previous templates on the production of a finished good or
part from an unfinished good or part including blanks (Doc. 42.576 for chapter 82 and Doc. 42.511
for chapter 83),  the Secretariat clarified that Issues 1 and 2 of Doc. 42.576 and Doc. 42.511 were
reported to the CRO only for information on prog ress in the work and, thus, the two separate
templates on chapters  82 and 83 would supplement the ones previously prepared as drafts only.
With regard to the necessity of general Chapter Note on the production of a finished good or
part from an unfinished good or part including blanks in chapter 82 and 83, some delegations
recognized the necessity because the product specific rules set for the goods of chapter 82 and 83 donot take account of all the different processes where substantial transformation takes place.
But other delegations took the view that a general Chapter Note is not necessary because the
product specific rules provide for all the cases of substantial transformation.
The Committee decided that these differing views should be submitted in templates . The
Committee also decided that issues of assembly arising in chapters 82 and 83 would be  covered in thedecisions and possible templates adopted for chapters 84 to 90.
The Committee took note that the above issue covers in general the transformation of
unfinished products of chapter 82 and 83.G/RO/37/Add.1
Page 79
AGENDA ITEM IV. 4. Chapters 84-90;
Machines, transport equipment, optical or
photographic apparatus
Working Documents Consolidated Text; Draft Referral Doc.
OC0015E1; OC0022 (United States); OC0024
(Japan); OC0027 (Brazil)
Texts adopted reproduced in Annex F/2
Referral Doc. OC0031
VIEWS AND DECISIONS OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
The Technical Committee examined the unresolved  issues for Chapters 84 to 90, including
proposed section notes and residual rules, using the consolidated text, draft templates and the
Members’ contributions.
The texts amended during the examination are set forth in Annex F/2 to this Report.
As a result of the discussions, unresolved issues have been presented in Referral Doc.
OC0031.
Generic Issues
The Technical Committee identified 13 generic issues applicable to the Chapters 84 to 90.
Several issues related to the change of classification rule were considered to have more general
application, and the text of the proposals and the reference to the issues were included in the referraldocument on the architecture.  These issues include: GIR 2(a) – collection of parts (No.4); GIR 2(a) –
assembly of the collected parts (No.5); packaging or repackaging of goods (No.6); change of use
(No.9); and origin of a disassembled or recovered pa rt or a removed article from the good that would
have performed its original purpose or would have been capable of being restored or repaired.  It was
agreed that the draft issues of numbers 14 to 16 were to be placed in Part 3 (product specific issues) ofthe referral document.  The Technical Committee also agreed that the generic issues modified as
indicated in Annex F/2 to this document shou ld be referred to the CRO for decision.
Product Specific Issues
69 product specific issues were identified and agreed with the appropriate modifications as
indicated in Annex F/2 to this document.  One issue was added to reflect a new proposal for heading85.42.  This was also agreed and reproduced in Annex F/2.
Chapter Notes/Rules for Chapters 84 to 90
The Technical Committee decided that the reorganised Chapter Notes/Rules should be
referred to the CRO for decision.  The Chapter Notes/Rules were reproduced in Annex F/2 to this
document.G/RO/37/Add.1
Page 80
ANNEX F/2
UNRESOLVED ISSUES FOR DECISION BY THE
COMMITTEE ON RULES OF ORIGIN
AGREED RULES OF ORIGIN SUBMITTED BY
THE TECNICAL COMMITTEE ON RULES OF ORIGIN
FOR ENDORSEMENT BY THE COMMITTEE ON RULES OF ORIGIN
(Designated as “Basket 1” in the Annex)
Chapters 84 - 90G/RO/37/Add.1
Page 81
The Technical Committee discussed the draft templa te document (OC0015E1) and agreed with the
following modifications.
I. REDRAFTED ISSUES
ISSUE No.38:
ASSEMBLY OF PLASMA DISPLAY PANELS, LASER PRINTER CARTRIDGES, INKJET
CARTRIDGES, PRINTER HEADS OR SHEET FEEDERS FROM THEIR PARTS
CLASSIFIED IN THE SA ME SUBHEADING (8473.30)
84.73 Parts and accessories (other
than covers, carrying cases
and the like) suitable for use
solely or principally withmachines of headings Nos.84.69 to 84.72.[For subheading 8473.30, as indicated
at the split subheading level
CTH/CTSHS;
For other subheadings of this heading ,
CTH, except from headings 84.69through 84.72]  (JPN) (AUS)[CTH, except from headings 84.69through 84.72 or change within each
subheading with supplementary criteria]
(CAN)[CTH] (COL) (MEX)[CTH; or for subheading 8473.30, asindicated at the split subheading level]
(US)
[45% value-added rule] (EC)[CTSH] (SG)[CTH; or change within subheadingsubject to Chapter Note] (CH)
[ex 8473.30(a) -- Plasma display panel, laser
printer cartridge, inkjet
cartridge, printer head or
sheet feeder[CTSHS (JPN) (EGY) (AUS) (KOR)]
[CTH (US)]
ex 8473.30(b) -- Memory modules (for
example, SIMMs, DIMMs and
memory boards)[CTH, except from heading 85.42 (US)] [Subsidiary Rule
The country of origin will
be the country of origin ofthe integrated circuits](US)
[CTH (JPN) (AUS) (KOR)]
ex 8473.30 (c) -- Other [CTH (US) (JPN) (AUS) (KOR)]
OPTION A : Yes.  (by assembly)
Option A/1:  (SG)
1. Any assembly from parts confers origin on the assembled goods.2. The Chapter rule should be:
“Obtaining goods from parts by assembly, including sub-assembly, shall be considered as
reflecting last substantial transformation.”
Option A/2:  (IND) (MOR)G/RO/37/Add.1
Page 82
3. Any assembly resulting in a new good having new characteristics is considered to be
substantial transformation.  Assembling plasma display panels, laser printer cartridges, inkjet
cartridges, printer heads or sheet feeders from parts classified in heading 84.73 results in a new good
having new characteristics.
4. The Chapter rule should be:
“An assembly operation resulting in a new good having new characteristics is considered to
be substantial transformation.”
OPTION B : Yes.  (by a change of tariff classification rule)  (JPN) (EGY) (AUS) (KOR)
5. Plasma display panels that are classified in subheading 8473.30 as parts of plasma display
units of subheading 8471.60 are manufactured by the following processes: i) front panel and back
panel as starting materials; ii) sealing two panels by frit glass; iii) exhausting of air through
exhausting tube (8473.30); and filling of NeXe ga s through exhausting tube and closing.  These
processes require a highly sophisticated technique under a clean environment to achieve strictlypredetermined accuracy.  The plasma display panel is totally different from source materials such as
exhausting tubes and substantially transformed.  The manufacture of plasma display panels from their
parts is an origin conferring event.
6. Laser printer cartridges, inkjet cartridges, pr inter heads or sheet feeders classified in the
subheading 8473.30 as parts or accessories of the machines of the heading 84.71 have been circulated
world-wide as complete and independent components similar to the plasma display panels.  They are
manufactured from parts also classified in the subheading 8473.30 through the complicated
assembling operation.  T he changes from the parts to them are worth being regarded as the last
substantial transformation.
7. The rule should be:
CTSHS for ex 8473.30(a)
OPTION C : Yes, provided  (by a value added rule)  (EC)
8. Any parts may be used to assemble plasma display panels regardless of its classification,
provided the criterion of 45% value added is satisfied.
9. The rule should be:
45 % value added rule
10. If the required value added is not achieved origin is determined by application of a [general]
[final] residual rule.
OPTION D :N o .
11. Parts or accessories of ADP machines should be manufactured from raw materials or other
articles classified in a different heading.  A change within the subheading is not considered as
substantial transformation.G/RO/37/Add.1
Page 83
12. The rule should be:
CTH
Option D/1:  (CAN) (COL) (MEX)
13. When the CTH rule is not met, origin is de termined by application of a [general] [final]
residual rule.
Option D/2:  (US)
14. When the CTH rule is not met, the “5 parts” rule, the specified process rule, the use of one
originating part rule and a [general] [final] residual rule apply in sequence.
RELEVANT HS CODES: ex 8473.30(a)G/RO/37/Add.1
Page 84
ISSUE No.59 : JPN’s New Splits Proposal
ASSEMBLY OF FINISHED OR COMPLETE TELEVISION RECEIVERS, VIDEO
PROJECTORS OR VIDEO MONITORS FROM UNFINISHED OR INCOMPLETE GOODS
CLASSIFIED IN THE SAME SUBHEADING AS THE COMPLETE OR FINISHED
PRODUCT
NOTE
15. The Generic Issue No. 3 is prepared to deal with the “non-blank” Chapter Note proposed by
CH.  On the other hand, Issue No.59 is prepared for the JPN and KOR’s proposal to split heading
85.28.  According to the proposed Chapter Notes structure the “non-blank” rule is applicable when the
product specific rules specified in the matrices do not determine the origin of a good.  Therefore theIssue No.59 should be considered as a product specific issue.
85.28 Reception appara tus for television,
whether or not in corporating radio-
broadcast receivers or sound or videorecording or reproducing apparatus;video monitors and video projectors.
[CTH;  or change by assembly according to therelevant Chapter Notes (CAN)]
[as specified for split subheadings  (JPN)]
[CTH](CH) (SG) (PHI) (TH)
[CTSH (MEX)]
[ CTSH, except from 8540.11 - 8540.12 (US)
(AUS) (HK)]
[value added  40% (EGY)]
[45 % value added rule (EC)]
[CTH except from chassis of heading 85.29(TUR)]
ex-85.28 (a)- Finished television CTH, or CTHS from ex-85.28 (b) (JPN) (KOR)
ex-85.28 (b)- Incomplete television not
incorporating a display deviceCTH (JPN) (KOR)
ex-85.28 (c) - Finished video projector CTHS (JPN) (KOR)
 ex-85.28
(d)- Incomplete video projector not
incorporating an optical block including
display deviceCTH (JPN) (KOR)
ex-85.28 (e)-  Finished video monitor CTHS (JPN) (KOR)
ex-85.28 (f)-  Incomplete video monitor not
incorporating a display deviceCTH (JPN) (KOR)
ex-85.28 (g)-O t h e r CTH (JPN) (KOR)
OPTION A : Yes.  (by assembly)
Option A/1:  (SG)
16. Any assembly from parts confers origin on the assembled goods.17. The Chapter rule should be:
“Obtaining goods from parts by assembly, including sub-assembly, shall be considered as
reflecting last substantial transformation.”G/RO/37/Add.1
Page 85
Option A/2:  (MOR)
18. Any assembly resulting in a new good having new characteristics is considered to be
substantial transformation.  Assembly of finished  or complete television receivers from incomplete
television receivers not incorporating a display device; assembly of finished or complete video
projectors from incomplete video projectors not incorporating an optical block including display
device; or assembly of finished or complete video monitors from incomplete video monitors not
incorporating display devices results in a new good having new characteristics.
19. The Chapter rule should be:
“An assembly operation resulting in a new good having new characteristics is considered to
be substantial transformation.”
OPTION B : Yes.  (by a change of tariff classification rule)  (JPN) (KOR)
20. Assembly of finished or complete television receivers from incomplete television receivers
which do not incorporate a display device, or of finished or complete video projectors from
incomplete video projectors which do not incorporate an optical block including display device, or of
finished or complete video monitors from incomplete video monitors which do not incorporate
display devices is a substantial transformation.  The finishing operations require the highly
sophisticated processing and determine the quality of the goods.   The production of these components
reflects the commercial reality of this industrial sector.  The finished television receivers, video
projectors and video monitors are substantially transformed from the unfinished or incomplete
television receivers, video projectors or video monitors.
21. The rule should be:
- CTH; or CTHS from ex-85.28(b) for ex 85.28(a)  (JPN) (KOR)- CTHS for ex 85.28(c) (subheading 8528.30)  (JPN) (KOR)
- CTHS for ex 85.28(e)  (JPN) (KOR)
OPTION C : Yes, provided  (by a Chapter Rule/Note)  (CH)
22. It is not necessary to deal with finishing operations as a product specific issue.  Finishing
unfinished or incomplete goods should be considered an origin conferring event, if the processes
satisfied the requirements laid down in the Chapter Rule/Note (the “non-blank” rule).
23. The Chapter Rule/Note should be:
“Whenever the change of classification rules set out for goods of chapters 84 to 90 and 93 are
not determinant of the country of origin of the good, the following substantial transformationrules are to be applied:
(a) A finished good or part produced from a non-originating unfinished good or part
classified in the same heading or subheading as the finished good or part shall originate
in the country in which the good or part was finished, provided:
(i) the unfinished good or part is not functioning for its ultimate use in its imported
condition and has undergone at least two or more of the following processes:G/RO/37/Add.1
Page 86
-  assembly by built-up such as but not limited to welding, soldering, shrinking,
bolting, glueing, fitting, fixing, spooling,  winding, connecting, wiring, coupling;  or
-  heat treatment or thermochemical treatme nt such as glowing, tempering, hardening;
or
-  treatment for the purpose of shaping, forming such as cold or warm forming;  or
-  mechanical treatment, refining of form-, positional- and surface tolerances of
functional finished shapes such as turning, milling, drilling, broaching, grinding,
polishing, honing, eroding;  or
-  surface treatment such as coating, compressing, condensing, impregnating
(excluding temporary conservation for transport and/or storage purpose), insulating;
or
-  system engineering, software-development and application;
and
(ii) The finished good or part has undergone final testing such as but not limited to
balancing, spinning, voltage testing, performance- or isolation test.
(b) A finished good or part, produced from a non-originating good or part, classified in
the same subdivision as the finished good or part which do not satisfy the conditions
mentioned in Rule 2.B.(1) (a) above shall originate in the country contributing most to
the product in terms of total value of parts (including an unfinished good) and related
processing activities.”
24. If the required processes are not satisfied origin is determined by application of a [general]
[final] residual rule.
OPTION D : Yes, provided  (by a value added rule)
Option D/1:  (EC)
25. Any non-originating material may be used regardless of its classification, provided the
criterion of 45% value added is satisfied.
26. The rule should be:
45% value added rule
27. If the required value added is not achieved origin is determined by application of a [general]
[final] residual rule.
Option D/2:  (EGY)
28. Any non-originating material may be used regardless of its classification, provided the
criterion of 40% value added is satisfied.G/RO/37/Add.1
Page 87
29. The rule should be:
40% value added rule
30. If the required value added is not achieved origin is determined by application of a [general]
[final] residual rule.
OPTION E :  No.  (See Issue No.60 for further elaboration)
31. The assembly of these electrical goods from unfinished or incomplete goods classified in the
same subheading is not a substantial transformation.
Option E/1:
32. The rule should be:
i) CTH    (PHI) (TH) (CAN) (HK)
CTSH (MEX) (MAL)
33. When the CTH or CTSH rule is not met, origin  is determined by application of a [general]
[final] residual rule.
Option E/2:
Option E/2/a:  (AUS)
34. The rule should be:
CTSH, except from 8540.11 or 8540.12
35. When the specified rule is not met, the “5 parts” rule, the specified process rule, the use of
one originating part rule and a [general] [final] residual rule apply in sequence.
Option E/2/b:  (US)
36. The rule should be:
CTSH, except from 8540.11 or 8540.12
37. When the specified rule is not met, a subsidiary  rule applies.  The subsidiary rule should be:
“Otherwise, the country of origin of the good sh all be the country of origin of the cathode-ray
television picture tube.”
Option E/3:  (TUR)
38. The rule should be:
CTH, except from chassis of heading 85.29.
39. When the specified rule is not met, origin is determined by application of a [general] [final]
residual rule.G/RO/37/Add.1
Page 88
RELEVANT HS CODES: 85.28  (ex85.28(a),  ex85.28(c),  ex85.28(e))
Issues Nos.65 is split into 2 separate issues by CAN’s request;  A split heading is added to
heading 85.42 by CH’ s request.
85.41 Diodes, transistors and similar
semiconductor devices;photosensitive semiconductordevices, including photovoltaiccells whether or not assembledin modules or made up into
panels; light emitting diodes;
mounted piezo-electric crystals.Proposals as specified for split
heading
ex-85.41 (a)- Diodes, transistors and
similar semiconductor devices;
photosensitive semiconductor
devices, including photovoltaic
cells whether or not assembled in
modules or made up into panels;
light emitting diodes, unmounted[CTSH]  (JPN) (CAN) (KOR) (CH)
(MEX) (SG) (PHI) (HK)[CTH; or change from split heading85.41 (g) (US) (AUS)]
[CTH ; or 45 % value added rule
(EC)]Subsidiary Rule: The
country of origin will
be the country ofdiffusion  (US)
ex-85.41 (b)- Diodes, transistors and
similar semiconductor devices;
photosensitive semiconductor
devices, including photovoltaic
cells whether or not assembled in
modules or made up into panels;
light emitting diodes, mounted .[CTHS] (JPN) (CAN) (SG) (PHI)
(MAL)
[ CTSH (CH) (MEX)]
[ CTH, or change from split
headings 85.41 (g) (US) (AUS)
(HK)(KOR)]
[CTH ; or 45 % value added rule
(EC)]Subsidiary Rule: The
country of origin will
be the country ofdiffusion  (US)
ex-85.41 (c)
(8541.60)- Mounted piezo-electric
crystals[CTSH] (CH) (CAN) (MEX)
(KOR) (JPN) (SG) (PHI)[ CTH (AUS)]
[CTH; or change from split heading
85.41(g)  (US)][CTH ; or 45 % value added rule(EC)]
ex-85.41 (d)- mounted goods
consisting of more than two
items of this heading[CTHS (JPN)]
[CTSH] (CH) (CAN) (MEX)
(KOR) (SG) (PHI) (MAL)
[ CTH (AUS)]
[CTH; or change from split heading85.41(g)  (US)][CTH ; or 45 % value added rule(EC)]
ex-85.41 (e)- Diodes, transistors and
similar semiconductor devices;
photosensitive semiconductor
devices, including photovoltaic
cells whether or not assembled in
modules or made up into panels;
light emitting diodes; mounted
piezo-electric crystals,
programmed[CTHS (SG) (PHI) (AUS)]
[CTSH] (CH) (CAN) (MEX)
(KOR) (JPN) (MAL)
[ CTH (US)][CTH ; or 45 % value added rule(EC)]G/RO/37/Add.1
Page 89
ex-85.41 (f)- Diodes, transistors and
similar semiconductor devices;
photosensitive semiconductor
devices, including photovoltaic
cells whether or not assembled in
modules or made up into panels;
light emitting diodes; mounted
piezo-electric crystals, tested[CTHS (SG) (MAL)]
[CTSH] (CH) (CAN) (MEX)(KOR) (JPN) (PHI)[CTH (US) (AUS)][CTH (US) (AUS)][CTH;  or 45 % value added rule
(EC)]
ex-8541 (g)
(8541.90)- Parts [CTH  (JPN) (CH) (COL) (CAN)
(MEX) (US) (EGY) (KOR) (AUS) ][CTH ; or 45 % value added rule(EC)]
ex-85.41 (h)
(ex-8541.40 )- Flame sensor [CTHS (CH) (MAL)]
[CTSH] (CAN) (MEX) (KOR)
(JPN) (SG) (PHI)
[CTH (US) (AUS)]
[CTH ; or 45 % value added rule(EC)]
85.42 Electronic inte grated circuits
and microassemblies.Proposals as specified for split
heading or for subheadings
ex-85.42 (a)-- Electronic integrated
circuits and microassemblies,
unmounted,  unprogrammed[CTSH]  (JPN) (CH)) (SG) (MEX)
(PHI)
[CTH (CAN)]
[for electronic integrated circuits:
The operation of diffusion
(where integrated circuits areformed on a semi-conductorsubstrate by the selective
introduction of an appropriate
dopant) (EC)for other:
       CTH; or 45 % value added rule(EC)]
[CTH;  orchange from split heading 85.42 (f)
(US) (AUS) (HK) (KOR)]Subsidiary Rules:
for goods of 8542.12:
The country of origin
will be the country of
origin of the chips or
dice therein (US)
FOR GOODS OF
SUBHEADINGS
8542.13 - 8542.40:
THE COUNTRY OF
ORIGIN WILL BETHE COUNTRY OF
DIFFUSION (US)G/RO/37/Add.1
Page 90
ex-85.42 (b)-- Electronic integrated
circuits and microassemblies,
unmounted, programmed[CTHS (CAN) (CH) (SG) (PHI)
(AUS)][for electronic integrated circuits:
The operation of diffusion
(where integrated circuits areformed on a semi-conductor
substrate by the selective
introduction of an appropriatedopant) (EC)for other:
       CTH; or 45 % value added rule(EC)]
Subsidiary Rules:
for goods of 8542.12:
The country of originwill be the country of
origin of the chips or
dice therein (US)
for goods of
subheadings 8542.13 -
8542.40:  The country
of origin will be the
country of diffusion(US)
ex-85.42 (c)-- Electronic integrated
circuits and microassemblies,
mounted, unprogrammed[CTHS] (JPN) (SG) (PHI) (CAN)(MAL)[CTHS, except from ex-85.42 (d)
(CAN)][CTH; or change from split headingex 85.42(f)  (US) (AUS) (KOR)Subsidiary Rules:
for goods of 8542.12:
The country of origin
will be the country of
origin of the chips ordice therein (US)
for goods of
subheadings 8542.13 -
8542.40:  The country
of origin will be the
country of diffusion
(US)
for electronic integrated circuits:
The operation of diffusion
(where integrated circuits areformed on a semi-conductorsubstrate by the selectiveintroduction of an appropriate
dopant) (EC)
for other:
       CTH; or 45 % value added rule(EC)]G/RO/37/Add.1
Page 91
ex-85.42 (d)-- Electronic integrated
circuits and microassemblies,
mounted, programmed[CTHS (CAN) (CH) (SG) (PHI)
(AUS)][for electronic integrated circuits:
The operation of diffusion
(where integrated circuits areformed on a semi-conductor
substrate by the selective
introduction of an appropriatedopant) (EC)for other:
       CTH; or 45 % value added rule(EC)]
Subsidiary Rules:
for goods of 8542.12:
The country of originwill be the country of
origin of the chips or
dice therein (US)
for goods of
subheadings 8542.13 -
8542.40:  The country
of origin will be the
country of diffusion(US)
ex-85.42 (e)-- Electronic integrated
circuits and microassemblies,
tested[CTHS (SG) (MOR) (MAL)][for electronic integrated circuits:
The operation of diffusion
(where integrated circuits areformed on a semi-conductorsubstrate by the selective
introduction of an appropriate
dopant) (EC)for other:
       CTH; or 45 % value added rule(EC)]
Subsidiary Rules:
for goods of 8542.12:
The country of originwill be the country of
origin of the chips or
dice therein (US)
for goods of
subheadings 8542.13 -
8542.40:  The country
of origin will be the
country of diffusion(US)
ex-85.42 (f)
(8542.90)- Parts [CTH  (JPN) (CH) (COL) (CAN)
(MEX) (US) (EGY) (KOR) (AUS)]
[CTH ; or 45 % value added rule(EC)]G/RO/37/Add.1
Page 92
ISSUE No.65:
PROGRAMMING DIODES, TRANSISTORS, SIMILAR SEMICONDUCTOR DEVICES
AND OTHER GOODS OF HEADING 85.41
OPTION A : Yes.  (by a process rule expressed by a change of classification)  (SG) (PHI) (AUS)
40. Programming changes a piece of plastic or metal into an electronic device which functions as
prescribed.  Programming is one of the core portions of the production processes.
41. The rule should be:
CTHS
OPTION B : Yes, provided  (by a value added rule)  (EC)
42. If the increase in value resulting from the assembly together with programming and other
accepted operations satisfies the criterion of 45% value added, the programmed goods are consideredsubstantially transformed.  If the programmed goods are manufactured from non-originating materials
classified outside this heading, this is also an or igin conferring event regardless of the value added
achieved.
43. The rule should be:
CTH; or 45% value added rule
44. If the required value added is not achieved origin is determined by application of a [general]
[final] residual rule.
OPTION C :  No
Option C/1:  (CAN) (CH) (MEX) (KOR) (JPN) (MAL)
45. For diodes, transistors, similar semiconductor devices and other goods of heading 85.41
programming alone is not a substantial transformation.  The programmed diodes, transistors, similar
semiconductor devices and other goods of heading 85.41 are considered substantially transformed
when these good are assembled directly from parts.
46. The rule should be:
CTSH
47. When the CTSH rule is not met, origin is determined by application of a [general] [final]
residual rule.
Option C/2:  (US)
48. For diodes, transistors, similar semiconductor devices and other goods of heading 85.41
programming alone is not a substantial transformation.  The programmed diodes, transistors, similar
semiconductor devices and other goods of heading 85.41 are considered substantially transformedwhen these goods are manufactured from raw materials classified other than heading 85.41.G/RO/37/Add.1
Page 93
49. The rule should be:
CTH
50. When the CTH rule is not met, a subsidiary rule applies.  The subsidiary rule should be:
“The country of origin will be the country of diffusion”
RELEVANT HS CODES : ex 85.41(e)
ISSUE No.65/1:
PROGRAMMING UNMOUNTED OR MOUNTED ELECTRONIC INTEGRATED
CIRCUITS AND MICROASSEMBLIES (E.G., ERASABLE PROGRAMMABLE READ
ONLY MEMORY (EPROM) FOR FIRE DETECTION OR INTRUSION ALARM SYSTEMS
OF 8531.90) OF HEADING 85.42
OPTION A : Yes.  (by a process rule expressed by a change of classification) (SG) (PHI) (AUS)
(CAN) (CH)
51. Programming changes a piece of plastic or metal into an electronic device which functions as
prescribed.  Programming is one of the core portions of the production processes.  The EPROM, for
example, is a programmed unmounted electronic integrated circuit and the masterpiece of the firedetection or intrusion alarm systems of subheading 8531.90.  The EPROM is normally exported
separately because it is programmed specifically for each client and each importing country according
to the national specifications for the fire detection or intrusion systems.
52. The rule should be:
CTHS
OPTION B : Yes, provided  (by a value added rule)  (EC)
53. If the increase in value resulting from the assembly together with programming and other
accepted operations satisfies the criterion of 45% value added, the programmed goods are considered
substantially transformed.  If the programmed goods are manufactured from non-originating materials
classified outside this heading, this is also an or igin conferring event regardless of the value added
achieved.
54. The rule should be:
CTH; or 45% value added rule for microassemblies of ex 85.42(d) only
55. If the required value added is not achieved origin is determined by application of a [general]
[final] residual rule.
OPTION C :  No
Option C/1: (JPN)
56. For electronic circuits and micro-assemblies of heading 85.42 programming alone is not a
substantial transformation.  The country of origin of the goods is the country of origin of the
unprogrammed unmounted or mounted article of split heading ex 85.42(a) or ex 85.42(c).G/RO/37/Add.1
Page 94
57. This option does not accept split headings ex 85.42(b), ex 85.42(d) and ex 85.42(e), thus no
proposal is presented.
Option C/2: (US)
58. For electronic circuits and micro-assemblies of heading 85.42 programming alone is not a
substantial transformation.
59. To determine the origin of the goods, a subsidiary rule applies.  The subsidiary rule should be:
“The country of origin will be the country of origin of the chips or dice therein.”   for “smart”
cards (8542.12);
“The country of origin will be the country of diffusion”   for other electronic integrated
circuits of 85.42;
Option C/3: (EC - electronic integrated circuits only)
60. For electronic integrated circuits of ex 85.42(b) or ex 85.42(d), after the diffusion no process
confers origin on the electronic integrated circuits.
61. The rule should be:
for electronic integrated circuits:  “The operation of diffusion (where integrated circuits are
formed on a semi-conductor substrate by the selective introduction of an appropriate dopant)”
RELEVANT HS CODES: ex 85.42(b),  ex 85.42(d)G/RO/37/Add.1
Page 95PART 4:  REORGANISED CHAPTER RULES AND NOTES
Chapters 84 to 90
[Chapter Notes][Chapter Rules][Legal Notes]:
For the purposes of this chapter:
[1. Limitations on change of classification rules:  (US)]
[[Notwithstanding the product specific rules in the matrix,] where a change of classification  (i.e., change of heading, subheading, split heading or split
subheading) results from one of the following circumstan ces, origin shall be determined as indicated:  (US)]
[Where satisfaction of the rules of this Appendix results solely  from the following circumstances, origin shall be determined a s indicated [herein] [in
Appendix].  (Alternative US Text)]
A. Disassembly
Disassembly operations, including those which result in a change  of tariff classification, shall not be considered origin confe rring.    (Basket 1)
[(1) A change of classification which results from the disassembly of the good that can perform its original purpose shall not b e considered as the change
required by the rule set forth in the matrix.  The parts recovered from the good shall retain the country of origin of the good  prior to disassembly.  (US)
(Issues Nos.11 and 12 )
[(2) A change of classification which results from the disassembly of the good that cannot perform its original purpose without being restored or repaired
shall not be considered as the change required by the rule set fo rth in the matrix.  The country of origin of the recovered par ts shall be (one among the
following options (US):]   ( Issues Nos.11 and 12 )
[(a) the country where the parts are recovered;]  (SEN)
[(b) the country of origin of the good from which the parts are recovered;]  (CAN)
[(c) the initial country of origin of the parts.]  (IND)
[Reassembly of disassembled parts:   ( Issue No.13 )
A good reassembled from disassembled parts shall have origin in the country where the good satisfy the rule set forth in the ma trix.  If the country of
origin is not determined by the rule set forth in the matrix, [Note][Rule] [a [general] [final] residual rule]  2 shall apply. (CH)]G/RO/37/Add.1
Page 96B. Packaging or repackaging   ( Issue No.6 )
[Where a change in classification results from packaging or repa ckaging the origin of the good shall be the origin prior to suc h packaging or repackaging. (US)
(AUS) (SEN)]
C. Application of HS GIR 2(a) - Collection of parts into kits   ( Issues Nos.4 and 5 )
[Where a change in classification results from the application of HS General Interpretative Rule 2(a) with respect to collectio ns of parts that are presented
as unassembled articles of another heading or subheading the indivi dual parts shall retain their origin prior to such collectio n.  (For goods assembled from
collections of parts, Note 2.C shall apply.)  (US) (AUS)]
[A change of classification which results from the application of Rule 2(a) of the General Rules for the Interpretation of the HS (GIR 2(a)), with respect to a
collection of parts, shall not be considered as the chan ge required by the rule set forth in the matrix. (Sec)]
[A good assembled from a collection of parts that are classified by  virtue of the application of GIR 2(a) in the same heading o r subheading as the good shall have
origin in the country where, subject to paragraph [next], the relevant rule or note set out in the Appendix is satisfied.
The change of classification that may be required by the relevant rule in the matrices is considered to have taken place in the  country in which the good is
assembled from the collection of parts.]  (JPN) (CAN) (HK) (CH)
D. Functional units   ( Issue No.7 )
[Where a change in classification results from the application of note 4 to Section XVI of the HS to separately packaged goods presented together in a
single shipment the separately packaged goods shall retain  their origin prior to such presentation. (US) (JPN) (AUS)]
E. Change of use   ( Issue No.9 )
[A change of classification which results from the change of use of the good shall not be considered as the change required by the rule set forth in the matrix.
(SEN)]
F. Recertification or retesting of articles   ( Issue No.10)
[A change of classification which results from the recertification or retesting of the good shall not be considered as the chan ge required by the rule set forth in
the matrix. (Sec)]
G. Degradation of goods by ageing or consumption or any other reason   ( Issue No.8 )
[[Unless otherwise provided] a change of classification which resu lts from degradation of the good by ageing or consumption or any other reason shall
not be considered as the change required by  the rule set forth in the matrix. (SEN)]G/RO/37/Add.1
Page 97[Origin Conferring Primary Rules (Sec)]:  (SG) (IND)   ( Issue No.1 )
[A. Goods of this chapter that are not wholly the product of one country shall be deemed to originate in the last country where one of the following occurs:
a) Non-originating materials undergo a change of classification fro m any other sub-heading, including a sub-heading of the same heading (CTSH); or from
any other heading (CTH) as indicated in the specific headings or subheadings;  or
b) Obtaining goods from parts by  assembly, including sub-assembly, shall be considered as reflecting last substantial transform ation; or
c) Process (such as mounting of integrated circuits) as defined for the specific headings or subheadings which result in new cha racteristics or use in the
finished product.  (SG)]
[B. An assembly operation resulting in a new good having new characteristics is considered to be substantial transformation.  (I ND) (MOR) (SEN for
Chapters 84 to 86 only)]
[C. For the purposes of Chapter 87 the following goods, when asse mbled and finished, shall originate in the country where assemb ly and finishing results in a
change of subheading:
(a) Bumpers;(b) Air bag systems (including inflators and modules);(c) Body assemblies ;(d) Brakes and servo-brakes;
(e) Gear boxes and similar gear assemblies;
(f) Axles, whether or not provided with other transmission components;(g) Wheels;(h) Suspension shock-absorbers;(ij) Vehicle suspension assemblies;
(k) Radiators;
(l) Silencers and exhaust pipes;G/RO/37/Add.1
Page 98(m) Clutches;
(n) Steering wheels, steering columns and steering boxes;
(o) Handle bar assemblies; and
(p) Chassis or frame assemblies. (US) ]
2-2. [Additional and residual (US) ] [Origin Conferring Primary (Sec)]  rules :
[When neither the product specific rules provided in the matrix nor legal note 1 above are determinant of origin, the following  shall apply: (US)]
[A. Goods produced from forged or cast blanks   (US) (CH) (AUS)  ( Issue No.2 )
Where goods are produced from forged or cast blanks which had the essential character of the complete or finished goods and wer e classifiable, by application of
HS General Interpretative Rule 2(a), in the same heading or subheading as the complete or finished goods:
(1) Provided the following criteria are met, the country of origin of the goods shall be the country in which the blank was fini shed: (US) (CH) (AUS)
(a) In its imported prefinished condition, the blank was not capable of functioning for its ultimate use and was not advanced be yond cleaning or working to
remove flash, sprues, burrs or sim ilar excess material, [and (US)] (AUS)
(b) In the country in which the goods were finished: (US) (CH)(i) The blank was configured to final shape by the removal of mate rial (other than merely by honing or polishing or both), or by  bending, hammering,
pressing, stamping or similar forming process; and  (US) (CH)
(ii) The blank underwent one or more of the following processes:1. [Hardening to a minimum hardness of 38 degrees Rockwell C [or Vickers H-V-3-70] or equivalent standard of hardness; (US)]
[Heat treatment or thermochemical treatment, su ch as glowing, tempering, hardening; (CH)] or
2. Assembly with five or more parts (other than parts of general use as defined in [Note 2 to Section XV or similar parts of pla stic (Chapter 39) (US)] [Note
1(g) to Section XVI of the HS (CH)]); or  (US) (CH)
3. Surface treatment, such as coating, compressin g, condensing, impregnating or insulating; (CH)
(2) If the criteria of subparagraph (a) above are not satisfied, the country of origin of the goods shall be the country of orig in of the blank.  (US) (CH) (AUS)]G/RO/37/Add.1
Page 99[B. Finished goods or parts  produced from unfinished goods or parts, other than blanks:  (CH)  ( Issue No.3 )
Whenever the change of classification rules set out for goods of chapters 84 to 90 and 93 are not determinant of the country of  origin of the good, the following
substantial transformation rules are to be applied:
(a) A finished good or part produced from a non-originating unfinis hed good or part classified in the same heading or subheading  as the finished good or part
shall originate in the country in which the good or part was finished, provided:
(i) the unfinished good or part is not functioning for its ultimate use in its imported condition and has undergone at least two  or more of the following
processes:
assembly by built-up such as but not limited to welding, solderin g, shrinking, bolting, glueing, fitting, fixing, spooling, win ding, connecting, wiring, coupling; or
heat treatment or thermochemical treatment such as glowing, tempering, hardening; ortreatment for the purpose of shaping, form ing such as cold or warm forming; or
mechanical treatment, refining of form-, positional- and surface tolerances of functional finished shapes such as turning, mill ing, drilling, broaching, grinding,
polishing, honing, eroding; or
surface treatment such as coating, compressing, condensing, im pregnating (excluding temporary conservation for transport and/or  storage purpose), insulating; or
system engineering, software-development and application;
and
(ii) The finished good or part has undergone final testing such as but not limited to balancing, spinning, voltage testing, perf ormance- or isolation test.
(b) A finished good or part, produced from a non-originating good or part, classified in the same subdivision as the finished go od or part which do not satisfy
the conditions mentioned in Rule 2.B(a) above shall originate in the country contributing most to the product in terms of total  value of parts (including an
unfinished good) and related processing activities.” (CH)]
[C. [Other (US) ] [Chapter Residual Rules (Sec)] :   (Issue No.1 )
Where neither the product specific rules in the matrix nor the preceding legal notes are determinant of origin, the following s hall apply:  (US) (CH)
(AUS) (TUR for ex 8471.60(a) for split subheadings (A) and (B) only)
(1) Goods produced by assembly of 5 or more parts (other than parts of general use, as defined in [Note 2 to Section XV or simil ar parts of plastic (Chapter
39) (US)] [note 1(g) to Section XVI of the HS (AUS)]) shall have origin in the country of assembly , or (US) (AUS) (TUR for ex 8 471.60(a) for split subheadings
(A) and (B) only)G/RO/37/Add.1
Page 100 (2) Goods produced as a result of processing non-originating components into a device or apparatus capable of performing one or more new mechanical or
electrical functions shall have origin in the country of such processing, or (US) (TUR for ex 8471.60(a) for split subheadings (A) and (B) only)
(3) [Residual rule ].— Goods produced by the assembly of less than 5 parts (other than parts of general use, as defined in Note 2 to Section XV of the HS or
similar parts of plastic (Chapter 39)), and one or more of whose parts (other than parts of general use, as defined in [Note 2 to Section XV of the HS or similar
parts of plastic (Chapter 39) (US)] [note 1(g) to Section XVI of  the HS (AUS)]) satisfies the requirements for origin in the co untry of assembly, shall have origin
in the country of assembly. (US) (AUS) (TUR for ex 8471.60(a) for split subheadings (A) and (B) only)
(4) [For the purposes of Paragraph 2.C above (Sec)] the following shall not be considered origin conferring operations:
(i) the attachment of machinery to  a base; (US) (CH) (JPN) (AUS)
(ii) the [installation (US)] [attachment (JPN)] of machinery or a pparatus into cabinets or similar encasements; (US) (CH) (JPN) (AUS)
(iii) the attachment of parts of general use (as defined in [Note 2 to Section XV of the HS or similar parts of plastic (Chapter  39) (US)] [note 1(g) to Section
XVI of the HS (CH) (JPN) (AUS)]); (US) (CH) (JPN) (AUS)
(iv) the attachment of handles, dials, knobs, hand cranks, an d other consumer-operated controls; (US) (CH) (JPN) (AUS)
the attachment of a power cord, [change of mains voltage/frequenc y by adding transformer, adapter or converter (TUR)] (US) (CH)  (AUS)
(vi) installation of batteries, accumulators, [sensors, thermostats (TUR)] or [other (US)] [similar (JPN)] articles not designed  to [or supplied (deletion
proposed by US)] become a permanent part  of the good; (US) (CH) (JPN) (AUS)
(vii) the attachment of accessories or parts (including printed circuits with components assembled thereon), which serve only to  enhance the operation of the
machine or device; (US) (AUS)
(viii) presetting, adding, changing parameters and settings of a programme in a machine, equipment or electronic equipment; (TUR )
(ix) Adding manuals, warranty cards, conformance certificates to sta ndards with or without test, adding brand, name and/or model  labels or relabeling; (TUR)
(x) Loading new software, version or different user language; (TUR)]
[3. Product specific residual rules  (US) ( Issue No.77 – OC0023E2 )
Chapter 87
When application of the primary rules of this Chapter (including  the product specific rules provided in the matrix) does not re sult in a determination of a
country of origin, the country of origin shall be determined as follows:G/RO/37/Add.1
Page 1011. The country of origin of safety seat belts of heading 87.08 that were assembled from narrow woven fabrics of heading 58.06 is  the country where the
fabrics were formed, or in the case of such a good containing textile fabrics of more than one country, the origin of the good is the country in which the textile
fabric that predominates by weight was formed.
Chapter 88
When application of the primary rules of this Chapter (including  the product specific rules provided in the matrix) does not re sult in a determination of a
country of origin, the country of origin shall be determined as follows:
1. The country of origin of a parts of and accessories to parach utes (including dirigible parachutes and paragliders) and rotoch utes of heading 88.04 is
the country where the fabrics were formed, or in the case of such a good containing textile fabrics of more than one country, t he origin of such good
is the country in which the textile fabric that predominates by weight was formed.]
4. Criteria to apply the residual rules of Appendix 2, Rule 2   ( Architecture, Issue No.1 )
The criteria to apply the residual rules of Appendix 2, Rule 2 for Chapters 84 to 90 are:
a) value  (EC);b) number of units or components  (US);c) essential characters  (CAN);d) essential characters for Chapters 84 and 85;  weight for Chapters 86 to 90  (JPN);
e) total value of parts (including unfinished goods) and the related processing activities  (CH).
5. Definitions   ( Issue No.2 )
a) [The term “blank” means an article, not ready for direct use, ha ving the approximate shape or outline of the finished article o r part, and which can only
be used, other than in exceptional cases, for completion into the finished article or part (e.g., bottle preforms of plastics b eing intermediate products having
tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end  being intended to be expanded
to a desired size and shape.] (Sec)
6. Method of calculating the ad valorem percentage prescribed in Origin Criteria:   (EC)   ( Issue No.1 )
For the purposes of calculating the percentage of the value added requested:G/RO/37/Add.1
Page 102a) The term “ex works price” shall mean the price paid for the pr oduct obtained to the manufacturer in whose undertaking the las t working or
processing is carried out.  The ex-works price shall include the value of all materials used in manufacture and all costs (mate rial costs as well as
other costs) effectively incurred by the manufacturer.  Internal taxes which are, or may be, repaid when such product is export ed or commercial price
reductions shall not be taken into account.
The terms “value acquired as a result of working and processing” and “incorporation of parts originating in the country of manu facture” shall mean the increase
in value resulting from the assembly itself,  together with any preparatory, finishing and checking operations, and from the inc orporation of any parts originating
in the country where the operations were carried out, including profit and general costs borne in that country as a result of t hese operations.G/RO/37/Add.1
Page 103
II. TECHNICAL MODIFICATIONS NOTED BY THE TCRO
62. Renumbering the issues as follows:
Old New Old New Old New Old New Old New
111 9 - 37 31 55 51 72 70
2 2 20 14 38 32 56 52 73 71
3 3 21 15 39 33 57 53 74 72
4 4 22 16 40 34 58 54 75 73
5 5 23 17 41 35 59 55 76 74
6 6 24 18 42 36 60 56 77 75
7 7 25 19 43 37 61 57 78 76
8 8 26 20 44 38 62 58 79 77
9 9 27 21 45 40 63 59 80 78
10 10 28 22 46 41 64 60 81 79
11 11 29 23 47 42 65 61 82 80
12 12 30 24 48 43 65/1 62 83 81
13 [13] 31 25 49 44 66 63 84 82
14 39 32 26 50 45 67 65 85 83
15 49 33 27 51 46 68 66 86 84
16 64 34 28 52 47 69 67 87 85
17 - 35 29 53 48 70 68 88 86
18 - 36 30 54 50 71 69
63. Delete Para.1 (NOTE) under Table of Contents.
64. Re. Issue No.1
1) “simple assembly” to read “non-origin-conferring assembly”  (applicable, mutatis mutandis,
to the whole document)
Example:“A/1 Tariff shift rules and [general] [final] residual rules
A/1/a without negative standards for a non-orig in-conferring assembly - (COL) (CAN) (MEX)
(PHI) (HK)
A/1/b with negative standards for a non-origin-c onferring assembly – (JPN) (CH)”  (Para.7)
2) BRA’s new value added rules (applicable, mutatis mutandis, to the whole document)
Example:
“B/2Product specific approach (60% for all goods of Chapters 84 and 86; 60% for some
goods of Chapter 85; 60% of some goods of Chapter 87; 45%, 51% or 60% for some
goods of Chapter 90) – (BRA)”  (Para.7)
“B/2 Product specific approach (all goods of Chapters 84 and 86; Some goods of Chapters 85, 87
and 90)  (BRA)
a) the increase in value acquired as a result of working and processing and, if applicable, the
incorporation of parts originating in the country of manufacture represents at least the specified
percentage of the product is carried out;G/RO/37/Add.1
Page 104
b) The figures of ad valorem percentages required are as follows:  for goods of Chapters 84 and
86, of headings 85.01, 85.03, 85.38, 87.01 to 87.06, 90.08 and 90.09, and of subheadings 8504.21,
8504.22, 8504.23, 8504.33, 8504.34, 8504.40, 8504.90, 8532.10, 8532.29, 8536.10, 8536.20, 8536.49,
8537.10 and 8537.20 at least 60 percent;  for goods of headings 90.06 and 90.10 at least 51 percent;
and for goods of headings 90.18 to 90.22 at least 45 percent ;
c) for Chapter 85 additional specific requirements are set forth for each heading or subheading to
which the value added rule is proposed, thus the value added and the specific requirements should be
satisfied;
d) however, for goods of Chapters 88 and 89 and for goods which are not covered by the value
added rule in Chapters 85, 87 and 90, a change of tariff classification rule is applicable;
e) if neither the required value added nor the change of tariff classification rule is satisfied a
[general] [final] residual rule is applied;”  (Para.12)
“Option B/2 :  (BRA)
For goods of Chapters 84 and 86, for goods of headings 85.01, 85.03 and 85.38, and of subheadings
8504.21, 8504.22, 8504.23, 8504.33, 8504.34, 8504.40, 8504.90, 8532.10, 8532.29, 8536.10, 8536.20,
8536.49, 8537.10 and 8537.20, for goods of headings 87.01 to 87.06, and for goods of headings 90.06
and 90.10, the value added approach is most suitable to address a substantial transformation.  The
figures of ad valorem percentages vary from a good to another; 45% and 51% for some goods of
Chapter 90, 60% for goods of Chapters 84 and 86, and some goods of Chapters 85, 87 and 90.
For these goods a change of classification rule does not appropriately address a substantial transform
ation.  However, for other goods a change of tariff classification properly addresses a substantial
transformation.”  (Para.41)
3) TUR’s correction
B/3 Product specific approach (Some goods of Chapter 85 only)  (TUR)b) however, for Chapters 84, 86 to 90, a change of tariff classification rule is applicable;
c) to prevent simple assembly from conferring origin on goods of these Chapters, the following 5
processes or operations are identified as the negative standards:4) Delete “and an issue of sets (Nos.14 to 16)”  (Para.6, 4th to 5th line).Delete CH from Para.11 (vii).Delete (viii) from Para.11.5) MOR’s correction
Delete Option A/2/c from Options A/2, MOR to join Option A/2/b; and Option A/2/d to read Option
A/2/c (Paras.7, 9 and 10);
Delete Para.25 (Option A/2/c approach (MOR)); the beginning of Para.24 to read “ The A/2/b
approach (IND) (MOR)”; and the beginning of Para .26 (new para.24) to read “The A/2/c approach
(US)”;
65. Re. Issue No.2G/RO/37/Add.1
Page 105
OPTION B  title to read: Yes, provided  (by the value added rule)  (EC) (BRA – all goods of
Chapters 84 and 86; Some goods of Chapters 85, 87 and 90) (TUR – some goods of Chapter
85) (AUS – goods of Chapter 87) (EGY – 85.28)
Para.6 to read as follows:  “When a blank is finished in one country, provided that the requ
ired value added (40% (EGY), 45% (EC, BRA, TUR, AUS), 51% (BRA) or 60% (EC, BRA,
AUS)) is achieved in that country as a result of working and processing and, if applicable, the
incorporation of parts originating in that country, origin should be conferred on that article.”
Para.7, BRA’s proposal to read as follows:  “the increase in value acquired as a result of
working and processing and, if applicable, the incorporation of parts originating in the country
of manufacture represents at least 60% for all goods of Chapters 84 and 86; 60% for some
goods of Chapter 85; 60% of some goods of Chapter 87; 45%, 51% or 60% for some goods ofChapter 90”  (BRA)
66. Re. Issue No.3   (applicable, mutatis mutandis, to the whole document)
See the reorganised Chapter Notes/Rules for CH’s new text.The term “ant” to read “any”   (2nd line of Para.44)Option A/4 title, “(BRA – some goods of Chapter 87) ” to read “(BRA – goods of Chapters 84 and 86;
some goods of Chapters 85, 87 and 90)”.
 “when an incomplete or unfinished article is completed or finished in one country, provided
that the required value added (40% (EGY), 45% (EC, BRA, TUR, AUS), 51% (BRA) or 60%
(EC, BRA, AUS)) is achieved in that country as a result of working and processing and, if
applicable, the incorporation of parts originating in that country, origin should be conferred onthat article.”  (Para.55)
“the increase in value acquired as a result of working and processing and, if applicable, the
incorporation of parts originating in the country of manufacture represents at least 60% for all
goods of Chapters 84 and 86; 60% for some goods of Chapter 85; 60% of some goods ofChapter 87; 45%, 51% or 60% for some g oods of Chapter 90”  (BRA)  (Para.56)
SEN to join Option A/4, EGY’s proposal (40% value added)  (Para.56)Delete the 3rd definition proposed by MOR; and MOR to join IND’s position.  (Para.53)
67. Re. Issue No.4SEN to join Option A68. Re. Issue No.5 (applicable, mutatis mutandis, to the whole document)
Paras.70 and 71 to read as follows:
“Option A/2:  (MOR)
Any assembly resulting in a new good having new characteristics is considered to be substantial
transformation.G/RO/37/Add.1
Page 106
The Chapter rule should be:
“An assembly operation resulting in a new good having new characteristics is considered to
be substantial transformation.””
SEN to join Option B/1.  JPN, CAN, HK, CH to join Option B/3.  Option B/1 title for BRA to read
the same text as Issue No.3, Option A/4.  BRA’s value added rule to read the same text as Para.56
(Para.73)
69. Re. Issue No.6SEN to join Option B
70. Re. Issue No.7
Option B/2 title to read “Option B/2:  (EC) ( BRA) (TUR – some goods in Chapter 85) (EGY – 85.28
only)”.  BRA’s value added rule to read the same text as Para.56 (Para.98)
71. Re. Issue No.8
SEN to join Option B72. Re. Issue No.9SEN to join Option B73. Re. Issue No.11
SEN to join Option A;  CAN joined Option B;  IND joined Option C;  EC joined Option D.
74. Re. Issue No.14 (new Issue No.39)SEN to join Option CAdd Option F as follows:“OPTION F : Yes, provided  (BRA)
Any material may be used regardless of its classification, provided the criterion of 60% value
added rule is satisfied.
The rule should be:
60% value added rule”
75. Re. Issues Nos.15 and 16
MOR, SEN joined Option A/2.  Delete Option A/3.MAL joined Option B.76. Re. Issue No.20MOR, SEN to join A/2;  and delete Option A/3 (Paras.179, 180)G/RO/37/Add.1
Page 107
The last sentence of Para.174 was deleted.  Reference to “ex 8443.90(b) (US)” was deleted (Para.184,
1st diamond).  “Option C”, “Option C/1” and “Opti on C/2” to read “Option D” , “Option D/1” and
“Option D/2”, and add new Option C as follows:
“OPTION C : Yes, provided  (by a value added rule) (BRA)
Any material may be used regardless of its classification, provided the criterion of 60% value
added rule is satisfied.
The rule should be:
60% value added rule
If the required value added is not achieved origin is determined by application of a [general]
[final] residual rule.”
77.. Re. Issue No.21
MOR, SEN to join A/2;  and delete Option A/3 (Paras.192, 193)
Subsidiary rule to read:  “The country of origin shall be the country of origin of the compressors.”
(Para.198)   “Option C”, “Option C/1”, “Option C/ 1/a”, “Option C/1/b” and “Option C/2”  to read
“Option D”, “Option D/1” “Opti on D/1/a”, “Option D/1/b” and “O ption D/2”, and add new Option C
as follows:
“OPTION C : Yes, provided  (by a value added rule) (BRA)
Any material may be used regardless of its classification, provided the criterion of 60% value
added rule is satisfied.
The rule should be:
60% value added rule”
If the required value added is not achieved origin is determined by application of a [general]
[final] residual rule.”
78.. Re. Issue No.22MOR, SEN to join A/2;  and delete Option A/3 (Paras.207, 208)“Option C” to read “Option D”, and add the same text of Option C for Issue No.21.
79. Re. Issue No.23
MOR, SEN to join A/2;  and delete Option A/3 (Paras.221, 222)
Under the Option C title insert “Option C/1:   (EC)”, and add Option C/2 as follows:
“Option C/2:  (BRA)
Machining centres or unit construction machines may be used as starting materials, provided
the 60% value added requirement is met.
The rule should be:G/RO/37/Add.1
Page 108
60 % value added rule
For both Options C/1 and C/2, if the required value added is not achieved origin is determined
by application of a [general] [final] residual rule.”
80. Re. Issue No.24
MOR, SEN to join A/2;  and delete Option A/3 (Paras.235, 236)
Under the Option C title insert “Option C/1:   (EC)”, and add Option C/2 as follows:
“Option C/2:  (BRA)
Non-numerically controlled machine-tools can be used as one of the components of the
numerically controlled machine-tools, provided the 60 % value added requirement is satisfied.
The rule should be:60 % value added ruleFor both Options C/1 and C/2, if the required value added is not achieved origin is determined
by application of a [general] [final] residual rule.”
89. Re. Issue No.25MOR, SEN to join A/2;  and delete Option A/3 (Paras.251, 252)
In para.256, delete “45” and insert “specified”.  Para.257 to read as follows:
“a) 45% value added rule  (EC)b) 60% value added rule  (BRA)”92. Re. Issues Nos.26 to 39MOR, SEN to join A/2;  and delete Option A/3 (Paras.270, 271, 286, 287, 302, 303, 318, 319, 334,
335, 348, 349, 363, 364, 378, 379, 392, 393, 407, 408, 422, 423, 437, 438, 451, 452, 465, 466, )
In paras.274, 291, 306, 323, 338, 353, 367, 382, 396, 411, 426, 441, 455, 469 delete “criterion of 45%
value added” and insert “the specified value added rule”.  Paras.257, 292, 307, 324, 339, 354, 368,
383, 397, 412, 427, 442, 456, 470 the text to read as follows:
“The rule should be:
a) 45% value added rule  (EC)
b) 60% value added rule  (BRA)”90. Re. Issue No.26“Option A/4; (TH)” to read “Option A/3: (TH)”.91. Re. Issue No.29G/RO/37/Add.1
Page 109
TUR joined Option D/1.
92. Re. Issue No.38US changed its position from Option B to Option D/2; CAN, COL and MEX are now Option D/1.
Option D/2 to read:
“When the CTH rule is not met, the “5 parts” rule, the specified process rule, the use of one
originating part rule and a [general] [final] residual rule apply in sequence.”
93. Re. Issue No.39HK and KOR joined Option B.94. Re. Issues Nos.40 and 41MOR, SEN to join A/2;  and delete Option A/3 (Paras.480, 481, 497, 498)
Under the Option C title insert “Option C/1:   (EC)”, and add Option C/2 as follows:
“Option C/2:  (BRA)
Any non-originating material may be used regardless of its classification, provided the
criterion of 60% value added is satisfied.
The rule should be:60 % value added rule
For both Options C/1 and C/2, if the required value added is not achieved origin is determined by
application of a [general] [final] residual rule.”
95. Re. Issue No.41Delete Para.506.Delete “[or ex 8482.99(c) (JPN)]”.  (Para.507)Option D was subdivided into 2.  KOR, JPN, TUR, US and AUS were placed in Option D/1.  New
Option D/2 to read:
“Option D/2:
The rule should be:
CTSH, except from inner or outer races or rings of subheading 8482.99 or CTSH from inner
or outer races or rings of subheading 8482.99 with supplementary criteria  (CAN)
When the inner or outer races or rings of subheading 8482.99 are used without satisfying the
supplementary criteria, origin is determined by application of a [general] [final] residual rule.(CAN)”
96. Re. Issue No.42In para.513 delete “criterion of 45% value added” and insert “the specified value added rule”.G/RO/37/Add.1
Page 110
Para.514 the text to read as follows:
“The rule should be:
a) CTH; or 45% value added rule  (EC)b) 60% value added rule  (BRA)”103. Re. Issue No.43MOR, SEN to join A/2;  and delete Option A/3 (Paras.523, 524)
Under the Option C title insert “Option C/1:   (EC)”, and add Option C/2 as follows:
“Option C/2:  (BRA)
Any non-originating material may be used regardless of its classification, provided the
criterion of 60% value added is satisfied.
The rule should be:60 % value added ruleFor both Options C/1 and C/2, if the required value added is not achieved origin is determined
by application of a [general] [final] residual rule.”
97. Re. Issue No.44MOR, SEN to join A/2;  and delete Option A/3 (Paras.538, 539) “Option C” to read “Option D”, and add new Option C as follows:
“OPTION C : Yes, provided  (by a value added rule) (BRA)
Any material may be used regardless of its classification, provided the criterion of 60% value added
rule is satisfied.
The rule should be:
60% value added rule”
If the required value added is not achieved origin is determined by application of a [general] [final]
residual rule.”
98. Re. Issues Nos.45 to 48
MOR, SEN to join A/2;  and delete Option A/3 (Paras.549, 550, 564, 565, 578, 579, 594, 595)MAL joined Option B.Delete TUR from Option C for Issue No.48.99. Re. Issue No.45G/RO/37/Add.1
Page 111
Under the Option C title insert “Option C/1:   (EC)”, and add Option C/2 as follows:
“Option C/2:  (BRA)
Any non-originating material may be used regardless of its classification, provided the criterion of
60% value added and the additional specific requirement is satisfied.
The rule should be:60 % value added rule;  and
Rotor and stator should be manufactured in the country of manufacture of the product
For both Options C/1 and C/2, if the required value added is not achieved origin is determined by
application of a [general] [final] residual rule.”
100. Re. Issue No.49
MOR, SEN to join A/2;  and delete Option A/3 (Paras.608, 609)
MAL joined Option B.101. Re. Issue No.50MOR, SEN to join A/2;  and delete Option A/3 (Paras.622, 623)MAL joined Option D/2.  KOR joined Option B.
102. Re. Issues Nos.51 and 52
MOR, SEN to join A/2;  and delete Option A/3 (Paras.640, 641, 655, 656)MAL joined Option B.  KOR joined Option D for Issue No.52.103. Re. Issue No.53MOR, SEN to join A/2;  and delete Option A/3 (Paras.672, 673)MAL joined Option D/1 (CTSH for 8517.19, 8517.80, CTH for 8517.90, 8525.20, 8529.90).
Reference to “ex-8529.90(a)” to read “split (A) ex 8529.90(b)”.
104. Re. Issue No.54MOR, SEN to join A/2;  and delete Option A/3 (Paras.690, 691)MAL joined Option E/1.105. Re. Issue No.55
IND and MAL joined Option A.
106. Re. Issue No.56MAL joined Option C.G/RO/37/Add.1
Page 112
107. Re. Issues Nos.57 and 58
MOR, SEN to join A/2;  and delete Option A/3 (Paras.725, 726, 740, 741)MAL joined Option D/1 (CTH).  KOR changed its position from Option D, a) (CTH) to Option D, b)
(CTSH, except from 2825.10/20)  (Para.733)  CH’s non-blank Chapter Notes be adjusted following
the Issue No.3.  (Para.759)
108. Re. Issue No.59Paras.754, 755 to read as follows:
Option A/2:  (MOR)
“Any assembly resulting in a new good having new characteristics is considered to be substantial
transformation.  Assembly of finished or comple te television receivers from incomplete television
receivers not incorporating a display device; assembly of finished or complete video projectors from
incomplete video projectors not incorporating an optical block including display device; or assembly
of finished or complete video monitors from incomplete video monitors not incorporating display
devices results in a new good having new characteristics.”
The Chapter rule should be:
“An assembly operation resulting in a new good having new characteristics is considered to be
substantial transformation.””
HK joined Option E/1(i).  MAL joined Option E/1(ii).   “Option E/2/a:  (US) ” to read “Option E/2/b :
(US)”
109. Re. Issue No.60MOR, SEN to join A/2;  and delete Option A/3 (Paras.780, 781)HK and MAL joined Option B (i).  Delete HK’s attribution to Option E.110. Re. Issues Nos.61 and 62MOR, SEN to join A/2;  and delete Option A/3 (Paras.802, 803, 820, 821)
MAL joined Option D/1.
111. Re. Issue No.61Add Option C/3 as follows:“Option C/3:  (BRA)
Any non-originating material may be used regardless of its classification, provided the criterion of
45% value added is satisfied.
The rule should be:
60% value added rule;  andG/RO/37/Add.1
Page 113
for ex 8537.10(a) – with starting switches in thermoplastic and in metal boxes:
Overload relay, contactor and circuit breaker which come with the starting switches should be
manufactured in the country of manufacture of the final good;
for ex 8537.10(b) – other:The metal box should be manufactured in the country of manufacture of the final good;
for 8537.20:
The metal box should be manufactured in the country of manufacture of the final good.
If the required value added is not achieved origin is determined by application of a [general] [final]
residual rule.”
112. SUMMARY NOTES TO ISSUES NOS. 63 TO 67
Structure of split headings:  85.41 (semiconductor devices, etc.; mounted piezo-electric
crystals)
HS Code Goods CTHS Rule Proponents Issue No.
ex 85.41(a) semiconductor devices, etc.,
unmountedValue added rule (EC)
Assembly from parts (others)No.1
ex 85.41(b) semiconductor devices, etc.,
mountedJPN, CAN, SG, PHI, MAL No.63
ex 85.41(c)
(8541.60)mounted piezo-electric
crystalsValue added rule (EC)
Manufacture from raw materials (US) (AUS)
Assembly from parts (others)No.1
ex 85.41(d) mounted, more than 2 items
of this headingJPN No.64
ex 85.41(e) programmed SG, PHI, AUS No.65
ex 85.41(f) tested SG,  MOR, MAL No.66
ex 85.41(g)
(8541.90)parts Value added rule (EC)
Manufacture from raw materials (others)No.1
ex 85.41(h)
(ex8541.40)Flame sensor CH No.67
Structure of split headings:  85.42 (IC and microassemblies)
HS Code Goods CTHS Rule Proponents Issue No.
ex 85.42(a) Unmounted, unprogrammed Diffusion for IC;
Value added for microassemblies (EC)Manufacture from raw materials (CAN)
Assembly from parts (others)No.1
ex 85.42(b) Unmounted, programmed CAN, SG, PHI, AUS, CH No.65/1
ex 85.42(c) Mounted, unprogrammed JPN, SG, PHI No.63
ex 85.42(d) Mounted, programmed CAN, SG, PHI, AUS, CH No.65/1
ex 85.42(e) tested SG, MOR, MAL No.66
ex 85.42(f)
(8542.90)parts Value added rule (EC)
Manufacture from raw materials (others)No.1G/RO/37/Add.1
Page 114
113. Re. Issue No.63
MOR, SEN to join A/2;  and delete Option A/3 (Paras.835, 836)MAL joined Option B.  Reference to the split headings “ex 85.42(b)”, “ex 85.42(c)” and “ ex
85.42(e)” to read “ex 85.42(c)”, “ex 85.42(d)” and “ex 85.42(f)”.
114. Re. Issue No.64MOR, SEN to join A/2;  and delete Option A/3 (Paras.858, 859)MAL joined Option D/1.115. Re. Issue No.66MOR, MAL and SEN joined Option A.  Delete SG from Option D.  Delete Option C and “Option D”
to read “Option C”.  Underline new Option C, a) te xt.  HK joined new Option C/a/1.  “Option D/a/1”,
“Option D/a/2”, “Option D/a/3”, “O ption D/b/1”, “Option D/b/2” and “Option D/b/3” to read “Option
C/a/1”, “Option C/a/2”, “Option C/a/3”, “Opti on C/b/1”, “Option C/b/2”  and “Option C/b/3”,
respectively.  In para.893 “ex 85.42(d)” to read “ex 85.42(e)”; in para.906 “ex 85.42(b)” to read “ex
85.42(c)”; in para.907 “ex 85.41(e) and ex 85.42(c)” to read “ex 85.41(f) and ex 85.42(e)”; in
para.909 the 2nd indented paragraph “electronic integrated circuits of 85.42” to read “for otherelectronic integrated circuits of 85.42”; in para.910 “ex 85.42(b)” to read “ex 85.42(e)” and delete the
last sentence; in Relevant HS Codes “ex 85.42(d)” to read “ex 85.42(e)”.
116. Re. Issue No.67
MOR, SEN to join A/2;  and delete Option A/3 (Paras.916, 917)
MAL joined Option B.117. Re. Issue No.68MOR, SEN to join A/2;  and delete Option A/3 (Paras.936, 937)MAL joined Option B(a).118. Re. Issue No.69
MOR, SEN to join A/2;  and delete Option A/3 (Paras.952, 953)
MAL joined Option B.119. Re. Issue No.70MOR, SEN to join A/2;  and delete Option A/3 (Paras.973, 974) “Option D”, “Option D/1” and “Opt ion D/2” to read “Option E”, “Option E/1” and “Option E/2”, and
insert new Option D as follows:
“OPTION D : Yes, provided  (by a value added rule)  (BRA)
Any parts may be used to assemble plasma display panels regardless of its classification, provided the
60% value added rule is satisfied.G/RO/37/Add.1
Page 115
The rule should be:
60% value added rule
If the required value added is not achieved origin is determined by applicat ion of a [general] [final]
residual rule.”
120. Re. Issue No.71MOR to join A/2;  and delete Option A/3 (Paras.989, 990)Option D/1 title to read “(CAN) (MAL for 87.02 to 87.05) (TUR for 87.04 only)Replace Paras.999 and 1000 with the following:“An assembly is considered to be a substantial transformation only when the increase in value
acquired as a result of working and processing and, if applicable, the incorporation of parts originatingin the country of manufacture, represents at least 60% of the product; and when the assembly
manufacturing process is carried out entirely in that country.
The following is the working or processing required to carry out:
Assembling of the preliminary vehicle body and/or cabin, based on separate stamped parts
Anti-corrosion treatment and internal and external painting
Assembling of the chassis , steering system, suspension system, electrical system, brake system and
other assemblies which add significant labour value
Final assembly of the cabin with local preparation and installation of items , including acoustic and
thermal lining material and finishing of seats and body
Final assembly of the vehicleFinal review and pertinent testsManagement of the quality and productivity of the process and final product , comprising the
inspection of raw materials, intermediate products and packaging materials, the statistical process
control, the tests and measurement and the final product quality
The rule should be:
“Manufacturing where the increase in value acquired as a result of working and processing
and, if applicable, the incorporation of parts originating in the country of manufacture
represents at least 60% of the product””
121. Re. Issues Nos.72 and 73MOR to join A/2;  and delete Option A/3 (Paras.1012, 1013, 1034, 1035)
122. Re. Issues Nos.74 and 75
MOR to join A/2;  and delete Option A/3 (Paras.1047, 1048, 1064, 1065)CH’s non-blank Chapter Notes are adjusted following the Issue No.3.  (Paras.1053 and 1070)G/RO/37/Add.1
Page 116
123. Re. Issues Nos.77 to 80
MAL joined Option A.124. Re. Issue No.81MAL joined Option C (CTH).  Delete “[of heading 70.14 or subheading 7015.10, for subheadings
9001.50 and 9001.90]”.  (Para.1100)
125. Re. Issue No.82MAL joined Option A (CTH).  Option B to read as follows:“OPTION B :  No
The mounting of optically worked lenses is a simple operation and does not result in substantial
transformation.  The rule should be (CAN, JPN):
CTSH, except from 9001.90”
Add new paragraph after Para.1103 as follows:
“When the CTSH rule is not met, the “5 parts” rule, the specified process rule, the use of oneoriginating part rule and a [general] [final] residual rule apply in sequence.”
126. Re. Issue No.83MAL joined Option A.  Add new paragraph after Para.1105 as follows:
“When the specified rule is not met, a subsidiary rule applies.  The subsidiary rule should be:
The country of origin of the good shall be the country of origin of the lens or other optical element.
(US)”
127. Re. Issue No.84
MAL joined Option B (CTSH).  Replace Option A, Para.1106 as follows:“The attachment of an interchangeable lens to a camera, projector or photographic enlarger or reducer
does not result in substantial transformation.  Such lenses are distinct goods which should be treated
separately for origin purposes.  The rules of origin for cameras, projectors and photographic enlargers
or reducers should provide that the addition of an interchangeable lens does not result in substantial
transformation of either the lens or the apparatus with which it is associated.  Without an appropriate
exclusion, by operation of the functional unit rule the origin of the lens would be subsumed to that of
the apparatus.  This would be the case even when the apparatus  is assembled from parts and there is a
required change of tariff classification. Furthermore, interchangeable lenses and the products on
which they are used are generally marked with their country of origin in a conspicuous manner.
Treating the combination as separate goods avoids the problems of re-marking the non-originating
good.  The rule should be (US):
CTSH, except a change from interchangeable lenses of subheading 9002.11, and a subsidiary rule to
provide that the country of origin of the lens shou ld be determined in accordance with the rule for
subheading 9002.11, and the country of origin of the camera, projector or photographic enlarger or
reducer in accordance with the rule for cameras, projectors or photographic enlargers or reducers  as
the case may be.”G/RO/37/Add.1
Page 117
128. Re. Issues Nos.85 to 86
MAL joined Option A.129. Re. Issue No.85
The last line of Para.1110 and Para.1111 to read as follows:
“CTSH, except from finished temples or finished fronts of 9003.90If this rule is not satisfied the origin of the good will be the origin of the front.  (US)”130. Re. Issue No.87MAL joined Option A (CTH).  Add new paragraph after Para.1118 as follows:“When the specified rule is not met, the “5 parts” rule, the specified process rule, the use of one
originating part rule and a [general] [final ] residual rule apply in sequence.  (US)”
131. Re. Issue No.88MAL joined Option A.  The first part of Para.1120 to read as follows:
“The rule should preclude origin being conferred on those parts and accessories which are
manufactured using non-originating control panels or programmable controllers of heading 8537 as
the manufacturing process would not substantially tr ansform those parts.  The rule should be (US):”
JPN’s new split proposal for subheading 9009.90
132. Issue No.1 (Origin conferring assembly) covers this issue.G/RO/37/Add.1
Page 118
90.09 Photo-copying apparatus incorporating
an optical system or of the contact type
and thermo-copying apparatus.Proposals as specified for subheadings
9009.90 - Parts and accessories [CTH (CH) (CAN) (MEX) (US) (KOR)
(SG) (PHI)]
[CTH; or 45% value added rule (EC)]Proposal as specified for split subheading
(JPN)
ex9009.90(a) --   Cartridge, sorter, feeder, paper
cassette, paper deck, cassette pedestal,
editor, film projector and film scanner[CTSHS (JPN)]
ex9009.90(b) --  Other [CTH (JPN)]G/RO/37/Add.1
Page 119
ANNEX G/1
Agenda Item IV.5 Harmonized Rules of Origin for particular
products of Chapters 91 to 97 (Chapter Notes,
tables, preparation of residual rules)
Working Documents Consolidated Text, Doc. 41.610, Annexes IJ/1,
IJ/2 and IJ/3 to Doc. 42.557, Doc. OC0010
Texts adopted reproduced in : Annex G/2
VIEWS AND DECISIONS OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
133. The Chairman pointed out that, as far as the primary rules were concerned, almost all the
outstanding issues in Chapters 91 to 97 had already been examined at the Technical Committee's 13th
and 16th Sessions, and draft templates had already been prepared.  Some of the unresolved issues in
these Chapters were already covered by the template on Chapters 84 to 90.  There would therefore not
be any need to have separate templates for those issues.
He invited delegates to review the outstanding issues in these Chapters, taking account of the
existing proposals for residual rules and any new proposals in this respect.
With few exceptions, in view of the time constraint for the Technical Commit tee to submit
the results of its work to the Committee and given the fact that the basic issue of determining origin in
the context of Appendix 2 had not been resolved, the Technical Committee confined itself, in the
majority of cases, to taking note of the new proposals regarding these Chapters and to making minor
amendments to the existing proposals.
For example, the Technical Committee took note of the residual rule proposed by the United
States for textile articles classified in Chapters 91, 94, 95 and 96, and decided to submit that rule to
the Committee for decision in the context of template OC0023, Issue No. 77.
With regard to Note 1 proposed by the United States for Chapters 92, 93, 94, 95 and 96, the
Technical Committee noted that parts (a) (changes in classification resulting from disassembly, not
conferring origin) and (b) (changes in classification resulting from packaging or repackaging, notconferring origin) justified being placed at horizontal level, since they had been adopted in other
Chapters.  That possibility would be considered when the overall coherence of the rules was
examined.
With regard to part (c) of the Note, the Technical Committee decided to add the reference to
Chapters 92, 93, 94, 95 and 96 to all issues dealing w ith the impact of HS General Interpretative Rule
2 (a) on the determining of origin.  That decision was also valid for all the other proposed Notes
regarding the assembly of goods classified in these Chapters.
The Technical Committee also took note of certain new proposals relating to criteria for
determining origin at residual level (value, weight, volume, etc.).  Those proposals are included in
Annex G/2 to this Report.
Referring to the large number of criteria put forward, the Delegation of India felt that it would
be appropriate to have a single residual rule based on only one criterion.  If that were not possible, itG/RO/37/Add.1
Page 120
could be left for national legislation to set the most  suitable criterion.  By way of example, the Indian
Delegation cited the Agreement on Customs Valuation which contained such a provision.
The Delegation of the European Community informed the Technical Committee that its
proposals for Chapter 93 were to be regarded as primary rules and the consequential amendments
needed to be made.
The Technical Committee also decided that Note 5 to Chapter 95 proposed by Korea and the
United States should be submitted to the Committee for decision.  That Note concerned the treatment
of blanks of goods classified in that Chapter (see template OC0033).
Several delegations felt that the goods covered by Chapter 97 were very specific goods
governed by other international agreements administered by other international organizations.  There
were several risks inherent in the Technical Comm ittee attempting to determine the origin of those
goods.  The Technical Committee should confine itself to examining the technical aspects and
submitting all the proposals to the Committee, in squa re brackets, with an invitation to continue the
work in conjunction with the competent international organizations.
The Chairman recalled that following the discus sion of origin rules for goods of Chapter 97 at
the 16th Session he had asked Members to consult with relevant national authorities on the matters
raised during the discussion.  The previous discussion had indicated that while the criterion of change
in tariff classification was generally sufficient to describe the creation of a work of art or antique,numerous issues arose in connection with the assignment  of origin in subsequent trade.  The proposals
for residual rules, which would be quite important in this sector, appeared to have wide implications
and to be subject to differing interpretations.
Reporting on their consultations with cultural heritage bodies in their governments, several
Members advised that these bodies had examined the implications of origin criteria such asnationality, country of creation, country of discovery, or country of collection.  The conclusion was
that such criteria had implications for policies on provenance and status as national cultural property.
There might also be unwelcome use of such criteria for evidentiary purposes in cases of disputed
ownership.  These Members proposed that in view of the policy sensitivities, there should be no
further debate in the Technical Committee of these matters.  Instead, the Technical Committee should
submit the record of its deliberations to the Committee with a recommendation that the WTO
Secretariat initiate consultations with appropriate international organizations, including UNESCO.
Other Members reiterated their positions that for goods of this sector the origin should be the
country of creation or discovery, considering this approach to be consistent with practice under the
1970 UNESCO Convention on Cultural Property and the related licensing procedures and
documentation.  These Members could not accept any differing rule of origin for Customs purposes.
Another Member noted the importance of taking a practical approach: identifying particular goods,such as stamp collections and goods which become antiques, which present problems.  In respect of
residual rules, this Member was prepared to accept the country of discovery as the country of origin.
Although a number of Members concurred that as a primary rule change of tariff heading was
generally adequate, the Technical Committee agreed to take no further decisions, instead agreeing to
place all proposals in square brackets for consid eration by the Committee.  The Technical Committee
decided that no Referral Issues should be prepared for Chapter 97, and that the issues prepared as
drafts at the 13th Session should be discarded.
The Chairman summed up that clearly there was a need to account for international policy
interests in the cultural property field.  At the same time, he said, it is a reality that substantial trade is
carried out in these goods.  In the course of such trade there will be Customs involvement in thedocumentation and procedures, meaning that Customs have a key role in implementing any policies
agreed.G/RO/37/Add.1
Page 121
ANNEX G/2
UNRESOLVED ISSUES FOR DECISION BY THE
COMMITTEE ON RULES OF ORIGIN
______________________________
AGREED RULES OF ORIGIN SUBMITTED BY
THE TECNICAL COMMITTEE ON RULES OF ORIGIN
FOR ENDORSEMENT BY THE COMMITTEE ON RULES OF ORIGIN
(Designated as “Basket 1” in the Annex)
Chapters 91 - 97G/RO/37/Add.1
Page 122CHAPTER 91
Chapter Legal Notes
Disassembly operations, including those which result in a change of tariff classification, shall not be considered origin confe rring. Basket 1 (Endorsed by CRO)
[Chapter Residual Rules
When application of the primary rules of this chapter (including  the product specific rules provided in the matrix) does not re sult in a determination of
a country of origin, the country of or igin shall be determined as follows:
1. The country of origin of goods of heading 91.13 that contain te xtile fabric or other textile material shall be the country wh ere the textile fabric or
other material was formed, or in the case of a good containing textile materials of more than one country,  the origin of the g ood is the country in which
the textile fabric or other textile material that predomin ates by weight was formed.  (US)]  (Referral Doc.OC0023E1)G/RO/37/Add.1
Page 123CHAPTER 92
Chapter Legal Notes
1. For the purposes of  those rules of origin which refer to a change of classification (i.e. change of heading or change of sub heading), the following changes
shall not confer origin:
a) changes which result from disassembly. (Basket 1)
b) changes which result from packaging or repackaging, or ( Basket 1)
[c) changes which result solely from  application of General Rule of Interpretation 2 (a) with respect to collections of parts t hat are presented as
unassembled articles of another heading or subheading. (US) ]   (Referral Doc.OC0029E1)
2. [For collection of parts merely put together that do not sati sfy the requirement of GIR2(a), the origin of the goods shall be  the origin of individual
parts (IND)] (Referral Doc.OC0029E1)
[Chapter Residual Rules
[When application of the primary rules of this chapter (includi ng the product specific rules provided in the matrix) does not r esult in a determination of a country
of origin, the country of origin shall be determined as follows:
Goods produced by assembly of 5 or more parts (other than parts of general use,  as defined in Note 2 to Section XV or similar parts of plastic (Chapter 39)) shall
have origin in the country of assembly.
Goods produced by the assembly of less than 5 parts (other than parts of general use, as defined in Note 2 to Section XV of the  HS or similar parts of plastic
(Chapter 39)), and one or more of whose parts (other than parts of general use, as defined in Note 2 to Section XV of the HS or  similar parts of plastic (Chapter
39)) satisfies the requirements for origin in the country of  assembly, shall have origin in the country of assembly.
For purposes of the subparagraphs 1 and 2 above, the following shall not be considered origin conferring operations:
the attachment of parts of general use (defined in Note 2 to Section XV of the HS);the attachment of handles, dials, knobs, hand cranks and other consumer-operated controls;installation of batteries, accumulators or other articles not designed to become a permanent part of the good,  orthe attachment of accessories or parts which serve only to enhance the operation of the good. (US)]
[Criteria for Residual Rules
Weight or essential character (CAN)
Weight or volume, as appropriate (US)G/RO/37/Add.1
Page 124 Value (EC)
Total value of parts and related processing activity (CH)Criteria to be left discretionary to each country (IND)]G/RO/37/Add.1
Page 125CHAPTER 93
Chapter Notes
1. For the purposes of those rules of origin which refer to a change of classification (i.e., change of heading or change of sub heading), the  following
changes shall not confer origin:
(a) changes which result from disassembly, (Basket 1)
(b) changes which result from packaging or repackaging, or (Basket 1)
[(c) changes which result solely from application of General Rule of Interpretation 2(a) with respect to collections of parts t hat are presented as
unassembled articles of another heading or subheading. (US)] (Referral Doc.OC0029E1)
2. [For collection of parts merely put together that do not sati sfy the requirement of GIR2(a), the origin of the goods shall be  the origin of individual parts
(IND)] (Referral Doc.OC0029E1)
3. [Whenever the change of classification rules set out for goods of chapters 84 to 90 and 93 are not determinant of the country  of origin of the good, the
following substantial transformation rules are to be applied:
(1) A finished good or part produced from a non-originating unfinished good or part classified in the same heading or subheading  as the finished good or part
shall originate in the country in which the good or part was finished, provided:
(i) the unfinished good or part is not functioning for its ultimate use in its imported condition and has undergone two or more of the following processes:
assembly by built-up such as but not limited to welding, solderin g, shrinking, bolting, glueing, fitting, fixing, spooling, win ding, connecting, wiring, coupling; or
heat treatment or thermochemical treatment such as glowing, tempering, hardening;  or
treatment for the purpose of shaping, form ing such as cold or warm forming;  or
mechanical treatment, refining of form-, positional- and surface tolerances of functional finished shapes such as turning, mill ing, drilling, broaching, grinding,
polishing, honing, eroding;  or
surface treatment such as coating, compressing, condensing, im pregnating (excluding temporary conservation for transport and/or  storage purpose), insulating; or
system engineering, software-development and application;  and
(ii) The finished good or part has undergone final testing such as but not limited to balancing, spinning, voltage testing, perf ormance- or isolation test.
(2) A finished good or part, produced from a non-originating good or part, classified in the same subdivision as the finished go od or part which do not satisfy
the conditions mentioned in Rule 2.B(a) above shall originate in the country contributing most to the product in terms of total  value of parts (including an
unfinished good) and related processing activities.” (CH)]  (Referral Doc.OC0031)G/RO/37/Add.1
Page 126 [Chapter Residual Rules
[When application of the primary rules of this chapter (includi ng the product specific rules provided in the matrix) does not r esult in a determination of a country
of origin, the country of origin shall be determined as follows:
1. Goods produced by assembly of 5 or more parts (other than parts of general use, as defined in Note 2 to Section XV or similar  parts of plastic
(Chapter 39)) shall have origin in the country of assembly.
2. Goods produced by the assembly of less than 5 parts (other than parts of general use, as defined in Note 2 to Section XV of t he HS or similar parts of
plastic (Chapter 39)), and one or more of whose parts (other than parts of general use, as defined in Note 2 to Section XV of t he HS or similar parts
of plastic (Chapter 39)) satisfies the requirements for origin in  the country of assembly, shall have origin in the country of assembly.
3. For purposes of the subparagraphs 1 and 2 above, the following shall not be considered origin conferring operations:(a) the attachment of parts of general use (defined in Note 2 to Section XV of the HS);(b) the attachment of handles, dials, knobs, hand cranks and other consumer-operated controls;(c) installation of batteries, accumulators or other articles not designed to become a permanent part of the good, or
(d) the attachment of accessories or parts which serve only to enhance the operation of the good. (US)]
[Criteria for Residual Rules
Weight or essential character (CAN)Weight or volume, as appropriate (US)Value (EC)
Total value of parts and related processing activity (CH)
Criteria to be left discretionary to each country (IND)]G/RO/37/Add.1
Page 127CHAPTER 94
Chapter Notes
1. For the purposes of those rules of origin which refer to a change of classification (i.e., change of heading or change of sub heading), the  following
changes shall not confer origin :
(a) changes which result from disassembly (Basket 1)
(b) changes which result from packaging, or (Basket 1)
[(c)  changes which result solely from application of General Rule of Interpretation 2(a) with respect to collections of parts that are presented as unassembled
articles of another heading or subheading (US)]  (Referral Doc.OC0029E1)
2. [For collection of parts merely put together that do not sati sfy the requirement of GIR 2(a), the origin of the goods shall b e the origin of individual
parts (IND)] (Referral Doc.OC0029E1)
[Obtaining goods from parts by assembly, including sub-assembly, shall be considered as reflecting last substantial transformat ion; (MOR) (IND)]  (Referral
Doc.OC0031)
[Chapter Residual Rules
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin, the country of origin shall be determined as follows:
1. The country of origin of goods of heading 94.04 shall be the country where the textile fabric was formed, or in the case of a  good containing textile
fabrics of more than one country, the origin of the good is the country in which the exterior textile fabric that predominates by weight was formed.  (US)]
(Referral Doc.OC0023E1)
[Criteria for Residual Rules
Weight or essential character (CAN)Weight or volume, as appropriate (US)
Value (EC)
Total value of parts and related processing activity (CH)
Criteria to be left discretionary to each country (IND)]G/RO/37/Add.1
Page 128CHAPTER 95
Chapter Notes:
1. For the purposes of those rules of origin which refer to a ch ange of classification (i.e., change of heading or change of su bheading), the following changes shall
not confer origin:
(a) changes which result from disassembly, ( Basket 1)
(b) changes which result from packaging or repackaging, or (Basket 1)
[(c) changes which result solely from application of General Rule of Interpretation 2(a) with respect to collections of parts th at are presented as
unassembled articles of another heading or subheading (US)] (Referral Doc.OC0029E1)
(d) [Presentation of goods for use other than that for which they were initially designed or intended is not origin conferring.  E.G., garments for babies of
61.11 or 62.09 to accessories for dolls of 95.02.  Text to be developed (CAN) (EC) (US)] (R eferral Doc.OC0029E1)
2. [For collection of parts merely put together that do not sati sfy the requirement of GIR 2(a), the origin of the goods shall b e the origin of individual parts
(IND)] (Referral Doc.OC0029E1)
3.  [Obtaining goods from parts by assembly, including sub-assembly, shall be considered as reflecting last substantial transfor mation; (MOR)(IND)]
(Referral Doc.OC0031)
4. Sets:  (Referral Doc.OC0029E1)
[OPTION A
1) Putting articles up in sets shall not be considered as a substantial transformation;2) The country of origin of a set put up from articles that originate in one country shall be that country;3) The country of origin of a set put up from articles that origin ate in more than one country shall be the country of origin of  the articles that confer the
essential character on the set as a whole;
4) In the event that neither (2) nor (3) is met, the country of origin shall be the single country in which the greatest number of articles in the set were made.
(JPN)]G/RO/37/Add.1
Page 129[OPTION B
1) Putting articles up in sets shall not be considered as a substantial transformation;
2) The country of origin of a set put up from articles that originate in one country shall be that country;
3) The country of origin of a set put up from articles that origin ate in more than one country shall be the single country in wh ich the greatest number of
articles in the set were made.
4) In the event that neither (2) nor (3) is met, the country of or igin shall be the country of origin of the articles that confe r the essential character on the set as
a whole;  (US)]
[OPTION C1) Putting articles up in sets shall not be considered as a substantial transformation;
2) The country of origin of a set put up from articles that originate in one country shall be that country;
3) The country of origin of a set put up from articles that orig inate in more than one country shall be the country of the artic le(s) representing the highest
value, the value of the articles having the same origin being taken together.  (EC)]
5. [For the purposes of heading 95.06 when the goods are produced from forged or cast blanks which had the essential character o f the complete or finished
goods and were classifiable, by application of HS General Interpretative Rule 2(a), in the same heading or subheading as the co mplete or finished goods:
(1) Provided the following criteria are met, the country of origin of the goods shall be the country in which the blank was fini shed:
(a) In its imported prefinished condition, the blank was not capable of functioning for its ultimate use and was not advanced be yond cleaning or working
to remove flash, sprues, burrs or similar excess material,  and
(b) In the country in which the goods were finished:
(i) The blank was configured to final shape by the removal of mate rial (other than merely by honing or polishing or both), or by  bending, hammering,
pressing, stamping or similar forming process;  and
(ii) The blank underwent one or more of the following processes:
Heat treatment or thermochemical treatment, such as glowing, tempering, hardening;  or
Assembly with five or more parts (other than parts of general use as defined in Note 1(g) to Section XVI of the HS);  orG/RO/37/Add.1
Page 1303. Surface treatment, such as coating, compressing, condensing, impregnating or insulating;
(2)  If the criteria of subparagraph (a) above are not satisfied, the country of origin of the goods shall be the country of or igin of the blank (KOR) (US)]  (Referral
Doc.OC0033E)
[Chapter Residual Rules
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin, the country of origin shall be determined as follows:
1. The country of origin of a good of subheading 9502.91 that was assembled from parts, but was not wholly assembled in a single  country, is the country in
which the most significant assembly operations were performed in the making-up of the good, without regard to the addition of b uttons and other fasteners, belt
and hanger loops, belts, patch pockets, labels, foot straps, ep aulettes, ornaments and other minor components.  (US)] (Referral  Doc.OC0023E1)
[Criteria for Residual Rules
Weight or essential character (CAN)Weight or volume, as appropriate (US)Value (EC)Total value of parts and related processing activity (CH)Criteria to be left discretionary to each country (IND)]G/RO/37/Add.1
Page 131CHAPTER 96
Chapter Notes:
1.  [For the purposes of those rules of origin which refer to a ch ange of classification (i.e., change of heading or change of s ubheading), the following
changes shall not confer origin :
(a) changes which result from disassembly,  (Basket 1)
(b) changes which result from packaging or repackaging,  or (Basket 1)
(c) changes which result solely from application of General Rule of Interpretation 2(a) with respect to collections of parts tha t are presented as
unassembled articles of another heading or subheading. (US)] (Referral Doc.OC0029E1)
2. [For collection of parts merely put together that do not sati sfy the requirement of GIR2(a), the origin of the goods shall be  the origin of individual parts
(IND)] (Referral Doc.OC0029E1)
3. Sets:  (Referral Doc.OC0029E1)
[OPTION A
1) Putting articles up in sets shall not be considered as a substantial transformation;
2) The country of origin of a set put up from articles that originate in one country shall be that country;3) The country of origin of a set put up from articles that origin ate in more than one country shall be the country of origin of  the articles that confer the
essential character on the set as a whole;
4) In the event that neither (2) nor (3) is met, the country of origin shall be the single country in which the greatest number of articles in the set were made.
(JPN)]
[OPTION B
1) Putting articles up in sets shall not be considered as a substantial transformation;
2) The country of origin of a set put up from articles that origin ate in more than one country shall be the single country in wh ich the greatest number of
articles in the set were made.
3) In the event that neither (2) nor (3) is met, the country of or igin shall be the country of origin of the articles that confe r the essential character on the set as
a whole; (US)]G/RO/37/Add.1
Page 132 [OPTION C
1) Putting articles up in sets shall not be considered as a substantial transformation;2) The country of origin of a set put up from articles that originate in one country shall be that country;3) The country of origin of a set put up from articles that origin ate in more than one country shall be the country of the artic le(s) representing the highest
value, the value of the articles having the same origin being taken together.  (EC)]
[Chapter Residual Rules
When application of the primary rules of this chapter (including the product specific rules provided in the matrix) does not re sult in a determination of a country
of origin, the country of origin shall be determined as follows:
1. The country of origin of typewriter or similar ribbons of subheading 9612.10 shall be the country where the textile fabric wa s formed, or in the case of a
good containing textile fabrics of more than one country, the origin of the good is the country in which the textile fabric tha t predominates by weight was formed.
(US)] (Referra l Doc.OC0023E1)
[Criteria for Residual Rules
Weight or essential character (CAN)Weight or volume, as appropriate (US)Value (EC)Total value of parts and related processing activity (CH)Criteria to be left discretionary to each country (IND)]G/RO/37/Add.1
Page 133CHAPTER 97
HS Code
numberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 97 Works of art, collectors' pieces and
antiquesAs indicated for headings
Technical file Doc. 42.144
(TUR)
97.01 Paintings, drawings and pastels,
executed entirely by hand, other than
drawings of heading n0 49.06 and other
than hand-painted or hand-decoratedmanufactured articles; collages and
similar decorative plaquesProposals as specified for
subheadingsDecisions as specified for
subheadings
9701.1
0- Paintings, drawings and pastels [CTSH] [Residual rule : nationality of
the artist or, if it is unknown,
according to the country
where the work of art was
discovered. (EC)]
The residual rule is to beapplied where it appears to
be impossible to determine
the country where the CTHoccurred. (EC)
9701.9
0-O t h e r [ C T S H ]
[CTH and residual rule (EC)] [Residual rule : nationality of
the artist or, if it is unknown,
according to the country
where the work of art wasdiscovered. (EC)]The residual rule is to be
applied where it appears to
be impossible to determine
the country where the CTHoccurred. (EC)
97.02 Original engravings, prints and
lithographs.[CTH]
[CTH and residual rule (EC)] [Residual rule : nationality of
the artist or, if it is unknown,
according to the countrywhere the work of art was
discovered. (EC)]The residual rule is to be
applied where it appears to
be impossible to determinethe country where the CTH
occurred. (EC)G/RO/37/Add.1
Page 134HS Code
numberDescription of goods Origin Criteria Notes Comments
AB C D E
97.03 Original sculptures and statuary, in
any material.[CTH]
[CTH and residual rule (EC)] [Residual rule : nationality of
the artist or, if it is unknown,
according to the country
where the work of art was
discovered. (EC)]The residual rule is to be
applied where it appears tobe impossible to determine
the country where the CTH
occurred. (EC)
97.04 Postage or revenue stamps, stamp-
postmarks, first-day covers, postal
stationery (stamped paper), and the
like, used, or if unused not of current
or new issue in the country to which
they are destined.[CTH]
[As indicated at the split heading
level (EC) (TUR)]
[ex9704(a) Collections (EC) (TUR) [(a)  Country of nationality of the
proprietor of the collection. (EC)
]
[(b)  The origin of the goods shall
be the country in which the piece
of this split heading wasproduced. (TUR)]There is no substantial
change of the quality, shape
etc. of the pieces only for
being a component of acollection. Therefore they
maintain their origin. (TUR)
ex9704(b) Other (EC) (TUR) CTH (EC) (TUR)]
97.05 Collections and collectors' pieces of
zoological, botanical, mineralogical,
anatomical, historical, archaeological,
palaeontological, ethnographic ornumismatic interest.[CTH]
[The origin of the goods shall be
the country in which the piece of
this heading was discovered.(TUR) (EGY)]
[As indicated at the split headinglevel (EC)]G/RO/37/Add.1
Page 135HS Code
numberDescription of goods Origin Criteria Notes Comments
AB C D E
[ex 9705(a) Collectors' pieces of zoological,
botanical, mineralogical, anatomical,
historical, archaeological,
palaeontological, ethnographic or
numismatic interest (EC)[Country where the piece was
discovered. (EC) (EGY)]
ex 9705(b) Collections (EC) [Country of nationality of theproprietor of the collection. (EC)
]There is no substantial
change of the quality, shape
etc. of the pieces only for
being a component of acollection. Therefore they
maintain their origin. (TUR)]
 97.06 Antiques of an age exceeding one
hundred years.[CTH ]
[The origin of the goods shall be
the country in which the piece ofthis heading was
produced/created. (TUR) (EGY)]
[Origin the pieces had when
produced (EC)]Antiquity (cultural property
in general) can be defined as
manmade instrumentsreflecting the traditional life
of people in every way and
the personal, collective and
anonymous products,
including handmade arts,handicrafts related to the arts
of science, technique,
culture, religion and
mechanics which must be
preserved because of theirvalues and uniqueness.
97.06 covers all antiques of
an age exceeding 100 years
but does not cover articles of
headings 9701 through 9705.G/RO/37/Add.1
Page 136HS Code
numberDescription of goods Origin Criteria Notes Comments
AB C D E
The antiques are classified in
this heading only becausethey exceed 100 years of age
although there is no
substantial transformation.
For this reason; the above
mentioned antiques are theproducts of the country
where they were
produced/created. The
quality, origin and
uniqueness will not bechanged because they exceed
100 years  of age. They
maintain the origin of the
country where they were
produced/created. (TUR)G/RO/37/Add.1
Page 137
ANNEX H/1
AGENDA ITEM V. Overall Architecture of the Harmonized Rules of
Origin
Working Documents
Annexes O/1, O/2, O/3 to C00O10E2.Doc
(Report of the 16th Session);
Annexes C/1, C/2, C/3 to OR42820E.Doc (Report
of the 15th Session);
Worskheets based on the Provisional Text.
Texts adopted reproduced in Annex H/2
VIEWS AND DECISIONS OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
1. During the Session the Technical Committee revised the entire Provisional Text of the
Harmonized Non-preferential Rules of Origin.  Th e work was carried out in working groups and,
to a large extent, in plenary session.
2. Members gave significant attention to the elaboration of a text in Appendix 2 setting out the
approach to the application of primary and residual rules.  This topic had required close
consideration during the 15th and 16th Sessions.  At this 17th Session Members continued to
develop the “single text” accepted during the 16th Session as the basis for further work.
3. By the end of the 17th Session this Appendix 2 text had been further explored and alternative
formulations of its elements had been developed.  Certain matters of content largely concerning
the precise criteria to be employed in residual rules were left unresolved.  The Chairman observedthat this state of affairs indicated that the issues, which had divided Members during previous
discussions, if not fully settled, were now better understood.  Recalling that in his 23 April
Progress Report to the Committee he had expressed optimism that the Technical Committee
would find a way forward, he said it now appeared  that significant progress had been made.
4. Concerning the Provisional Text as a whole, it was decided that the text would be presented with
the Technical Committee’s observations.  Where observations appeared, this was to be taken as
indicating that the technical consideration had not been completed, the observations being offered
as aids to subsequent consideration.  For some issues the technical debate was considered to have
been exhausted, and referral templates were prepared.  These unresolved issues appear at the end
of Annex H/2 to this Report.
5. The Technical Committee’s Provisional Text, as amended, and with observations and the
differing views on unresolved issues, is at Annex H/2 of this Report.  The text is reproduced also
in the formal Referral Document OC0029.G/RO/37/Add.1
Page 138
ANNEX H/2
HARMONIZED NON-PREFERENTIAL RULES OF ORIGIN*
PROVISIONAL TEXT OF THE TECHNICAL COMMITTEE ON RULES OF ORIGIN
as revised at its 17th Session
1. Where no square bracket is placed in the text, it is understood that a general consensus has been
reached on the text, subject to the overall coherence examination.
2. *   Order of rules and the placement of rules are to be finalised.
DEFINITIONS
[References to manufacturing, producing or processing goods include any kind of working, assembly
or processing operation.
Methods of obtaining goods include manufacturing, raising, growing, breeding, mining, extracting,
harvesting, fishing trapping, gathering, hunting and capturing.
Material includes ingredients, parts, components, subassemblies and goods that were physically
incorporated into another good or were subject to a process in the production of another good.
Originating material means a material whose country of origin, as determined under these rules, is the
same country as the country in which the material is used in production.
Non-originating material means a material whose c ountry of origin, as determined under these rules,
is not the same country as the country in which that material is used in production.
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994.
["Essential character" means the predominant physical nature, principal function, or other attribute of
a good, that establishes the identity of the good. (CAN)]]G/RO/37/Add.1
Page 139
Observations :
(a) The definitions should include a definition of “change in tariff classification” instead of
indicating such a definition in Appendix 2, Rule 3 (Rules of Application) (IND)
(b) The inclusion of the term  “essential character” in the definitions is not necessary since this term
is not used in the harmonized rules of origin.  Moreover, no satisfactory definition of this term
has been established so far.  (EC)
(c) The scope of application should be the first provision of the Annex followed by Definitions.
Thereafter the General Rules should be gin in numbered sequence.  (CAN)(IND)
GENERAL RULES
General Rule 1:  SCOPE OF APPLICATION
Rules of Origin provided in this Annex shall be as defined in Article 1, paragraph 1 of the
Agreement on Rules of Origin annexed to the Agreement Establishing the World TradeOrganization (WTO), and shall be applied for the purposes set out in Article 1, paragraph 2 of
the Agreement on Rules of Origin.
General Rule 2:  HARMONIZED SYSTEM
1. References to headings and subheadings are references as they appear in the Harmonized
Commodity Description and Coding System (herei nafter referred to as “Harmonized System”
or “HS”) as amended and in force.  Classification of goods within headings and subheadings of
the Harmonized System is governed by  the General Interpretative Rules and any relative
Section, Chapter and Subheading Notes to that System.  Classification of goods within any
additional subdivisions created for purposes of the rules of origin  shall also be governed by the
General Interpretative Rules and any relative Section, Chapter and Subheading Notes to the
Harmonized System, unless the rules of this Annex otherwise require.
2. [The outcome of an origin determination und er the Harmonized Non-Preferential Rules of
Origin shall not be affected by the amendments to the Harmonized System. (CAN)(IND)]
When amendments to the Harmonized System are recommended by the CCC [WCO Council] ,
a technical review shall be undertaken with respect to their possible effect upon the results of
origin determinations under the Harmonized Non- Preferential Rules of Origin.   Necessary
technical rectifications approved by the WTO shall take effect on the date when the
amendments to the Harmonized System enter into force. [Such approval shall be made at leastone year before the entry into force of the amendments to the Harmonized System.  Otherwise
the technical rectifications shall take effect on the date specified by the Committee on Rules of
Origin. (JPN)]G/RO/37/Add.1
Page 140
The Technical Committee intends to consult with the Committee on Rules of Origin concerning
possible institutional arrangements for technical review and rectification.  As provided in Art. 6 of the
Agreement, such technical review should encompass not only alignment with the HS, but also
technical review of the origin rules to k eep them updated and assure administrability.
General Rule 3 :  DEFINITIONS
[moved to the beginning of this Annex]
General Rule 4:  DETERMINATION OF ORIGIN
The country of origin of a good shall be determined in accordance with these General Rules and
in accordance with the provisions of Appendix 1 and Appendix 2, applied in sequence.
[General Rule 5 (Proposed) : DE MINIMIS
Non-originating materials that do not meet the primary rules set forth in Appendix 2 shall be
disregarded in determining the country of origin provided that these materials do not exceed the
threshold laid down in Appendix 2.  This provis ion is hereinafter referred to as the “de minimis
rule”. (EC)]
(to be considered with other de minimis proposals in General Rule 8 and Appendix 2, Rule 6)
General Rule 5  : MINIMAL OPERATIONS OR PROCESSES
[The following operations or processes, taken by themselves or in combination with each
other and undertaken for the purposes prescribed herein, are considered to be minimal and
thus shall be treated as provided in Paragrap h 2 to Appendix 1 [or Rule 3 to Appendix 2, as
appropriate (Deletion proposed by PHI, CH, IND )]]:
(i) operations or processes to ensure the preservation of goods in good condition for the
purposes of transport or storage;
(ii) operations or processes to facilitate shipment or transportation;
(iii) operations or processes that concern the packaging or presentation of goods for sale.]
Observations:
Minimal operations and processes have already been taken into account in the preparation of the
product-specific rules.  Appendix-level exclusions would override rules at the chapter and matrix
level which have been agreed to confer origin. (CH)(PHI)
The above definitions should be deleted; minimal operations or processes should be as specified in
the list of examples below. (IND)G/RO/37/Add.1
Page 141
[Examples of minimal operations or processes include, among others :
- ventilation
- spreading out
- drying
- chilling- removal of damaged parts
- application of grease, anti-rust paint or protective coating
- removal of dust
- cleaning
- washing
- sifting or screening
- sorting- classifying or grading
- testing or calibration
- breaking bulk
- packing, unpacking or repacking
- grouping of packages- affixing of marks, labels or distinguishing signs on goods or their packages
- dilution with water or any other aqueous solution
- ionizing
- salting
- husking- shelling (unshelling)
- stoning
- crushing  (IND) ]
This list should be deleted. (CAN)(US)(HK)(PHI)
With a view to an uniform application of this pr ovision, an indicative list of processes regarded as
minimal operations according to this definition would be appropriate.  A list will be provided later
on.  (EC)  (CHI) supports this approach.
See Referral Issues Nos. 1 & 2
General Rule 6 . NEUTRAL ELEMENTS
[[Unless otherwise provid ed in this Annex, (MOR) (TUN )] in order to determine whether a
good originates in a country, the origin of th e power and fuel, plant and equipment, including
safety equipment, or machines and tools used to obtain a good or the materials used in its
manufacture which do not remain in the good or form part of the good shall not be taken into
account.]
This provision is not necessary. (PHI) (HK) (SEN) (IND) (NZ)(MAL)
See Referral Issue No. 3
General Rule 7 : PACKING AND PACKAGING MATERIALS AND CONTAINERS
Unless the provisions of Appendix 1 or Appendix 2 otherwise require, the origin of packing and
packaging materials and containers presented with the goods therein shall be disregarded in
determining the origin of the goods under General Rule 4, provided such packing andG/RO/37/Add.1
Page 142
packaging materials and containers are classifi ed with the goods under the Harmonized System.
The packing and packaging materials and containers which are not classified with their contents
are separate goods, thus their origin shall be determined in accordance with the appropriate
rules set forth in Appendices 1 and 2.
[General Rule 8:  DE MINIMIS]
[In application of rules in Appendices 1 and 2, non-originating materials that do not meet the
primary rule set forth for the obtained good shall be disregarded in determining the country of
origin provided these materials do not exceed the threshold of 20% of the ex-works price of
such a good.  (MOR)]
3. 
4. (To be considered with proposed De Minimis rules at proposed General Rule 5 and
in Appendix 2, Rule 6.)
5. 
6. This Rule is not necessary.  (PHI) (SEN)(IND)(MAL)(NZ)
7. 
See Referral Issue No. 4G/RO/37/Add.1
Page 143
APPENDIX 1 - Wholly Obtained Goods
1. Scope of Application
This Appendix sets forth the definitions of the goods that are to be considered as being wholly
obtained in one country.
2. Minimal Operations and Processes
For purposes of this Appendix, minimal operations or processes referred to in General Rule 4,
Paragraph 3 shall not be taken into account in determining whether a good has been wholly
obtained in one country.
Definitions Notes
1. The following goods are to be considered as
being wholly obtained in one country :
(a) Live animals born and raised in that country; In definitions 1 (a), (b), and (c) the term "animals"
covers all animal life, including mammals, birds,
fish, crustaceans, molluscs, reptiles, bacteria and
viruses.
(b) Animals obtained by hunting, trapping, fishing,
gathering or capturing in that country;Definition 1 (b) covers animals obtained in the
wild, whether live or dead, whether or not bornand raised in that country.
(c) Products obtained from live animals in that
country;Definition 1 (c) covers products obtained from
live animals without further processing, including
milk, eggs, natural honey, hair, wool, semen anddung.
(d) Plants and plant products harvested, picked or
gathered in that country;Definition 1 (d) covers all plant life, including
fruit, flowers, vegetables, trees, seaweed, fungiand live plants grown in that country.
(e) Minerals and other naturally occurring
substances, not included in definitions (a)-(d),
extracted or taken in that country;Definition 1 (e) covers crude minerals and other
naturally occurring substances, including rock or
solar salt, crude mineral sulphur occurring in free
state, natural sands, clays, stones, metallic ores,
crude oil, natural gas, bituminous minerals, naturalearths, ordinary natural waters, natural mineralwaters, natural snow and ice.G/RO/37/Add.1
Page 144
Definitions Notes
(f) Scrap and waste derived from manufacturing or
processing operations or from consumption in
that country and fit only for disposal or for therecovery of raw materials;Definition 1 (f) covers all scrap and waste,
including scrap and waste resulting from
manufacturing or processing operations orconsumption in the same country, scrap
machinery, discarded packaging and household
rubbish and all products that can no longer
perform the purpose for which they were
produced, and are fit only for discarding or for therecovery of raw materials.  Such manufacturing or
processing operations include all types of
processing, not only industrial or chemical but
also mining, agricultural, construction, refining,
incineration and sewage treatment operations.
(g) [Articles collected in that country which can no
longer perform their original purpose nor are
capable of being restored or repaired and which
are fit only for disposal or for the recovery ofparts or raw materials;]
(h) Alternative 1 :
[Parts or raw materials recovered in that country
from articles which can no longer perform their
original purpose nor are capable of being
restored or repaired;] [1]
Alternative 2 :
[Parts or raw materials obtained in that country
from articles collected in that country which are
not fit for their original purpose nor are capable
of being restored or repaired and are fit only for
disposal or for the recovery of parts or raw
materials;]
(i) Goods obtained or produced in that country
solely from products referred to in (a) - (f) [and(g) and (h)] above;[For a good to be considered wholly obtained in
one country under definition 1(i):
(i)      The good must have been obtained or
produced from the products of that country
mentioned in definitions 1(a) to (h);
(ii)      the products of definitions 1(a) to (h) must
not have undergone processing in anothercountry; and
(iii)     the good must not contain
materials not considered to be wholly obtained inthat country.]
                                                     
1   [In the recovery of parts or raw materials, envi ronmental considerations may arise, particularly for
radioactive, hazardous and toxic waste that may result from the recovery of parts or raw materials from Articles.
In this connection, this rule is without prejudice to Me mbers’ rights to take WTO-consistent measures to protect
the environment.]G/RO/37/Add.1
Page 145
Definitions Notes
[2 (i)  Products of sea-fishing and other products
taken from the sea outside a country are
considered to be wholly obtained in the countryof registration of the vessel that carries out thoseoperations.
(ii)  Goods obtained or produced on board
factory ships are considered to be wholly
obtained in the country of registration of thefactory ship, provided that those goods are
manufactured from the products referred to in
subparagraph (i) originating in the samecountry.
(iii)  Products taken from the sea-bed or subsoil
beneath the sea-bed outside a country are
considered to be wholly obtained in the country
that has the rights to exploit that sea-bed orsubsoil.][The term “registration” in Definition 2(i) and (ii)
includes registration that a country grants to
chartered vessels or factory ships, provided thisregistration is in accordance with the requirementsof that country.]
[2Alternative Text
(i)  Products of sea-fishing and other productstaken from the sea outside the territorial sea and
maritime zones over which the coastal state has
jurisdiction are considered to be whollyobtained in the state of registration of the vesselthat carries out those operations.
(iii)  products taken from the area of the seabed
and ocean floor and subsoil thereof outside
national jurisdiction, as defined in accordancewith the provisions of the United Nations
Convention on the Law of the Sea, are
considered to be wholly obtained in the state
that has the exploitation rights, in conformity
with the provisions of that Convention and theAgreement relating to the Implementation ofPart XI of that Convention of 28 July 1994.][The term “registration” in Definition 2(i) and (ii)
includes registration that a country grants to
chartered vessels or factory ships, provided this
registration is in accordance with the requirements
of that country.]
APPENDIX 2 - Product Specific Rules of Origin
Rule 1 Scope of Application
This Appendix sets forth rules for determining the country of origin of a good when the origin
of the good is not determined under Appendix 1.
Rule 2 Determination of origin
[Principles of Approach]
[Origin Determination under Primary Rules insertion of this header proposed by (HK)(PHI);
deletion proposed by (US)(CAN) ]G/RO/37/Add.1
Page 146
The country of origin shall be determined in accordance with the following provisions,
applied in sequence;
(a)  when a primary rule specifies that the origin of a good is the country in which the good
was obtained in its natural or unprocessed state,  the country of origin of the good shallbe the country in which that good was obtained in that condition;
N.B.  reference to other Ottawa-type rules (where born, where raised, where grew) to be
added when final decisions are made on product-specific rules.]
(b)  the country of origin of a good is the last country of production [provided] [where
(IND)(PHI)(HK)(MAL)(BRA)] a primary rule applicable to the good was satisfied in
that country;
[(c)(i) [when a good undergoes a non-origin conferring operation, the origin of the good is the
country from which the good originated immediately prior to such an operation.]
Observation  :  The scope of this provision (c)(i)as drafted is overly broad; there should be
reference  to operations identified in the Annex, such as minimal operations or processes or
other non-origin conferring operations as specified at a Chapter level.  (EC)
[(c)(ii)
Alternative 1
[when no applicable primary rule was satisfied [in the last country of manufacture or
processing deletion proposed by (PHI) ][and no applicable chapter residual rule was satisfied]
but the good has been produced in that country by further processing of [a material or article]
[an article] classified in the same provision as that of the good, the country of origin of the
good is the country in which that [material or article] [article] originated, provided that any
materials subsequently added to the [material or article][article] have undergone the change of
classification or have otherwise satisfied any other requirement specified in the primary rule
applicable to the good;]
Alternative 2
[when the further processing of a good does not change the classification of the good, and any
materials used in the further processing satisfy the primary rule for the good, the country of
origin of the good is the country of origin prior to the further processing;]
alternative 3
[when no applicable primary rule was satisfied in the last country of manufacture or
production [and no applicable chapter residual rule was satisfied] and the good was produced
as a result of further processing which did not change its classification, the country of origin
of the good is the country of origin prior to such further processing;]$G/RO/37/Add.1
Page 147
Observation: This provision (c)(ii) is unnecessary as the idea and consequences of its
application are taken up in subparas. (b) and (c)(i).  Moreover, the provision is not properly
a rule but a principle; as such, it needs to be reformulated and probably presented elsewhere.
(IND)(SEN)
[Origin Determination under Residual Rules insertion of this header proposed by (HK)(PHI);
deletion proposed by (US)(CAN) ]
[(d) when no applicable primary rule has been satisfied [in the last country of production -
deletion proposed by (IND) ],  the country of origin shall be determined as indicated in
the applicable residual rule specified at the chapter level;]
Observations:
It may be appropriate to apply (d) before (c)(i)and (c)(ii).
(US)(CH)(EC)(EGY)(CAN(JPN)(MOR))
The placement here is appr opriate.  (HK)(IND)(MAL)
(e) when no applicable primary rule was satisfied in the last country of manufacture or
processing of the good [and no applicable chapter residual rule was satisfied deletion
proposed by (PHI) ], and the good is produced from materials originating in a single
country, the country of origin of the good is the country in which those materials
originated;
[(f)  when no applicable primary rule was satisfied [in the last country of manufacture or
processing of the good deletion proposed by (PHI  ][and no applicable chapter residual
rule was satisfied], and the good is produced from materials originating in a single
country that did not undergo the change of classification or otherwise satisfy the primary
rule applicable to the good, the country of origin of the good is the country in which that
material originated;]G/RO/37/Add.1
Page 148
Observations:
This provision (f) is highly important because of its relation to the primary rules.  When a
primary rule is not met, account should be taken in the residual rules of the design of the
primary rules, giving due weight to the intended results of the primary rules and seeking not
to give originating status to an operation or material by application of a residual rule when
the applicable primary rule was intended to prevent that same result.  That is why this rule
bases origin on the country of origin of the material(s) originating in a single country which
did not satisfy a primary rule, and thus complements the outcome of the primary rule.  If the
applicable primary rule is change of heading “except from a specified heading”, then
obviously the intent of the primary rule was that the specified change did not result in
substantial transformation.  It is thus logical and appropriate to focus on the origin of the
materials which did not undergo the required change. (US)
This provision (f) should be deleted.  In the residual rules origin should be based upon the
origin of all the materials used, without distinction.  (IND)
The provision (f) introduces an extra step in determination of origin and is overly complex to
apply.  In many cases the materials used will originate in several countries, and thus origin
would be found by application of subparagraph (g). (EC)(EGY)
This provision (f) has to be considered in relation  to primary rules submitted to the CRO
which are based on the exclusion of specified materials.  (CH)
Additional provision  proposed for application before provision (g):  [when the good is
produced from originating or non-originating materials of more than one country and a
primary rule has not been satisfied for the good, the country of origin of the good shall be thecountry of origin of the material that fulfills the major role with regard to the use of the good;
(CAN)]
Observation : This is a very practical and transparent method of determining origin in a
residual environment by first focussing on the use of the good and associating based on that
material which fulfils the major role in this regard. (CAN)
(g) when no applicable primary rule was satisfied [in the last country of manufacture or
processing of the good deletion proposed by (PHI) ][and no applicable chapter residual
rule was satisfied], and the good is produced from materials [(whether or not
originating)] of more than one country [that did not undergo the change of classification
or otherwise satisfy the primary rule applicable to the good deletion proposed by
(IND )(CAN)  ], the country of origin of the good shall be the country in which the major
portion of those materials originated, as determined on the basis specified in each
chapter.
Observations:
The bracketed text referring to materials which did not undergo change of classification or otherwise
satisfy the primary rule should be deleted.  In the residual rules origin should be based upon the
origin of all the materials used, without distinction.  (IND)(CAN)
The bracketed text in (g) referring to materials which did not undergo change of classification or
otherwise satisfy the primary rule should be retained for the reasons expressed in the observation
regarding subparagraph (f). (US)G/RO/37/Add.1
Page 149
General Observation:
All three provisions, subparagraphs (e), (f), and (g), will be necessary to determine origin in certain
cases and should be retained.    (COL)
[(h) the country of origin of the good shall be the last country of production. (CAN) ]
Observation :  Subparagraph (h) to be used in only the few cases where subparagraph (g) cannot
provide a single country of origin.  Normally, this wo uld only occur in the case of a tie, at which point
a rule providing origin to the last country of production is the most predictable, clear and simplest
solution. (CAN)
Rule 3 Rules of Application
(a) [Subject to [the minimal operations or processes referred to in General Rule 5 or any
other applicable provisions – deletion proposed by (PHI)],  rules of origin that refer to
change in classification require that each non-originating material in the good hasundergone a change in classification at the level of the Harmonized System (Section,
Chapter, heading, or subheading), or of any additional subdivision thereof, specified in
the rule.]
(b) [Unless the rules of this Appendix require comparison of originating and non-originating
materials, the origin criteria set forth in th e rules apply only to non-originating materials.
(EC)]
(c) [The term “change in tariff classification” is understood to mean that non-originating
materials used in the production of a good are not classified in the same splitsubheading, subheading, split heading, heading, respectively, as the good that is under
examination. (TUN)]
[Rules of origin that refer to change in classification require that each foreign material
in the good undergo a change in classification at the level of the Harmonized System(section, chapter, heading, subheading), or of any additional subdivision thereof,
specified in the rule, by reason of production, other than by the minimal operations or
processes defined in General Rule 5 or in applicable legal notes.  (US)]
_______________
A suggestion was made to consolidate the above provisions within the following text:
In applying this Appendix :
[(a) Origin shall be determined according to the rules provided for goods based upon
their classification in the Harmonized System and any additional subdivisions created
thereunder, and subject to other rules [or chapter notes (CAN) ] provided in this Annex.
(b) Rules of origin that refer to change in classification require that each non-originating
material in the good undergo the change of classification specified in the rule, other than
by the minimal operations or processes defined in General Rule 5 or any other applicable
non-origin conferring process.  (US)]
_______________G/RO/37/Add.1
Page 150
(d) Minimal operations or processes
[For the purposes of this Appendix:
(i) [minimal operations or processes referred to in General Rule 5 shall not confer origin
on a good; and deletion proposed by (CH)(PHI) ]
(ii) a minimal operation or process referred to in General Rule 5 or a combination of
them shall not preclude conferring origin on a good if origin is conferred as a result of
other operations or processes.]
_______________
Observations and Drafting Guidelines for Rule 3, Rules of Application
The Technical Committee took note that for completeness, a rule concerning the application of origin
criteria might require more elements than those embodied in the texts above.  The Technical
Committee was of the view that consideration should be given to inclusion and appropriate
arrangement of the following elements:
• Application of rules of origin begins with classification of the good in the HS and the
identification of the corresponding product descript ion in the Harmonized Non-Preferential Rules
of Origin;
• An indication of where the rules of origin are to be found (matrix, chapter, Appendices, General
rules), and that rules of origin are to be applied together with any applicable legal notes, chapter
notes or rules of interpretation;
• An indication that primary rules are those rules found at a matrix or chapter level which confer
origin and are to be applied first.  All rules of origin are primary rules unless otherwise
indicated;
• Residual rules are found at chapter [section] or appendix level, are specifically designated as
such, and are applied only if primary rules give no result;
• For primary rules, both change of classification or other, a rule applicable to a good is met when
non-originating materials undergo the required change in the last country of production; [For
residual rules this is not decided, and normally residual rules will be applied according to their
terms]
• It is also to be considered whether the present Rule 4 on intermediate materials could be included
under Rule 3 as a Rule of Application.
• Separate specific application instructions are needed for change of classification rules as follows:
-  to indicate that all non-originating materials must undergo the required change of
classification  (subject to any limitations under a de minimis rule if agreed). ( Under other kinds
of rules it is not necessarily the case that all materials undergo the required change);
-  to indicate the changes in classification which do not confer origin, such as disassembly,
change of use, or change of classifica tion by reason of GIR 2(a) of the HS.G/RO/37/Add.1
Page 151
There are three provisions that might be placed here as relating to the application of change of
classification criteria :  treatment of GIR 2(a); di sassembly and the origin of disassembled parts; and
change of use.  Presentation of rules on these items as Appendix 2 Rules of Application would permit
the deletion of these provisions from the Chapters in which they appear, and the Technical Committee
decided to pursue this approach.
The Technical Committee’s previous discussions on these issues took place largely in the context of
rules for Chapters 84-90.  The unresolved issues  which emerged from these discussions are now
considered by the Technical Committee to be horizontal issues relating  to the application of origin
criteria based on change in tariff classification which should be resolved in the context of rules of
application in the overall architecture.  These issues, originally formulated as Unresolved Issues in
Referral Doc. 0015 covering Chapters 84-90,  are reproduced at the end of this document following
the presentation of the other Unresolved Issues arising in the overall architecture.
 
Rule 4 Intermediate materials*
[[Except as otherwise provided in this A ppendix, (US)] materials which have acquired
originating status in a country by virtue of fulfilling the rules set forth in this Appendix [Annex
(CAN)(US)] are considered to be originating materials of that country for the purpose of
determining the origin of a good incorporat ing such materials or a good made from such
materials by further working or processing in that country.]
*   Subject to finalisation of the residual rules.
Rule 5 Special provisions
(a) Accessories and spare parts and tools
[Accessories, spare parts, tools and instru ctional or other informational material
[, instructional and other informational material (MAL)] classified and presented with a good
shall be disregarded in determining the origin of that good under General Rule 4, provided theyare imported and normally sold therewith and correspond, in kind and number, to the normal
equipment thereof.]
Observations:
Consideration could be given to moving this provision to the Annex, as it applies to the entire
Annex. (HK)
The provision is potentially troublesome as drafted because the terms “accessories” and
“spare parts” are not sufficiently precise.  The provision needs to avoid leaving  wide scope for
differing interpretations.  (NIG)
[(b) [Fungible goods and materials]
[When it is necessary to determine the origin of interchangeable goods or materials which are
combined [commingled (US)] in inventory so that  it is not practical to segregate the goods or
materials by their country of origin, for purposes of the application of the origin rules, an
allocation by country of origin can be made [for the relevant production period (US)] inaccordance with an applicable recognised inventory management method.]G/RO/37/Add.1
Page 152
Observations :
The Technical Committee has not reached a resolution on this issue.  Some Members favour it,
some oppose it, and others continue to study its utility.  During the 15th Session Members noted
that answers to the following questions would help the consideration:
To what products does this provision apply?
What is the inventory management method to be adopted?
Clarification on “applicable recognized inventory management method”.
Clarification on “for the purposes of the application of the origin rules”.
Is the provision also used for the purposes of clarifying the residual rule ?
The following Members indicated at the 17th Session that for them the text left uncertain what
goods were considered fungible; what was an inventory management method.  (HK, EGY, PHI)
The proposed method is considered to result in the arbitrary assignment of origin. (MAL)
The provision is beneficial when considering the commercial reality of trade.  As well, it is not
a rule of origin. (CAN)
(c) Putting up in sets [or kits (CAN )(NZ)(CH) ]
[For purposes of these rules and except as otherwise provided in this Appendix:
Goods put up in sets shall retain the origin of the individual articles in the set. (US)]
[For purposes of determining the origin of sets  [kits] and except as otherwise provided in this
Appendix:
(1) [Merely putting articles into sets is not origin conferring.](2) for [goods explicitly mentioned as sets in a heading of the HS deletion proposed by PHI ] and
for goods classified as sets by GIR 3(b) of the HS, the following rules shall apply:
(i) The country of origin of a set [or kit] put up from articles that originate in one
country shall be that country;
(ii) [The country of origin of a set [or kit] put up from articles that originate in more
than one country shall be that country of origin of the article or articles that confer
the essential character of the set or kit as a whole. (CAN)(MAL)]
[The country of origin of a set put up from articles that originate in more than one
country shall be the country of the article(s) representing the highest value, the
value of the articles having the same origin being taken together. (EC)]
[The country of origin of a set put up from different articles shall be the country
which contributes with the highest value to the set, taking into account the value of
the articles and the work carried out, the value of the articles (including work)
having the same origin being taken together; and
For the purposes of this paragraph,  the term “work” means that the country which
put up articles into sets can consider its work (value) carried out as an equivalent
part of the calculation. (CH)]G/RO/37/Add.1
Page 153
(3) for goods merely put together that are not classified together by GIR 3(b) and do not satisfy
the requirements of GIR 3(b) of the Harmonized System, the following rule shall apply:
The origin of the goods shall be the origin of individual articles.]
Observations  :
The proposed rule should cover only sets defined under GIR 3(b); for sets explicitly mentioned in
headings of the HS primary rules have been devised to address each case and should be
retained.  (PHI)
The proposed rule should cover all sets and provide the same rule for them. (CAN)
The term “essential character” is not appropriate as a criterion to determine the origin of sets
because it might be subject to different interpretations.  No satisfactory definition of this term
has been established so far.  (EC)
See Referral Issue No. 5
[Rule 6  DE MINIMIS]   See also General Rule 8
[In application of the primary rules in Appendix 2, non-originating materials that do not meet
the primary rule set forth for the obtained good shall be disregarded in determining the country
of origin provided these materials do not exceed the threshold of 20% of the ex-works price of
such a good.  (CH)]
[1. Non-originating materials that do not undergo an applicable change in tariff classification or
satisfy any other applicable requirements of these Regulations shall be disregarded in
determining the country of origin of the goods if:
(a)   In the case of goods classified under any other chapter of the Harmonized System other
than under any of Chapters 1 to 4, 6 to 8, 11, 12, 15, 17 and 20 the value of the non-originatingmaterials is not more than 7% of the transactional value of the good, or 10% of the volume of
the total alcoholic strength of the goods classified under Chapter 22; and
(b)   [in the case of goods classified under Chapters 50 to 63, the combined weight of the non-
originating materials does not exceed 7% of the total weight of the goods;]
2.  For the purpose of paragraph 1, the value of the good or the material shall be:
(a)   the transaction value of the good or material, determined in accordance with Article 1 of
the Customs Valuation Agreement;  or
(b) in the event that there is no transaction value or the transaction value of the good or
material is unacceptable under Article 1 of the Customs Valuation Agreement, determinedin accordance with Article 2 through 7 of the Customs Valuation Agreement.
3. For purposes of paragraph 1:
(a)  the value of the good shall be adjusted to an f.o.b. basis, and
(b)  the value of the material shall be adjusted to a c.i.f. basis.G/RO/37/Add.1
Page 154
4.      For purposes of applying the Customs Valuation Agreement under this General Rule, the
principles of the Customs Valuation Agreement shall apply to domestic transactions, with such
modifications as may be required by the circu mstances, as would apply to international
transactions.  (CAN)]
Observations  :  A de minimis rule, if adopted, should not be applicable to origin determination
for goods of Chapters 9 or 21.  (COL)
Subparagraph 3 of the Canadian proposal is no t consistent with the WTO Valuation
Agreement.  (JPN)
De minimis rules should be articulated on a Chapter or product sector basis.  (JPN)
(KOR)(EGY)(COL)
A de Minimis rule is not necessary. (PHI) (SEN)(IND)(MAL)(NZ)
See Referral Issue No. 4G/RO/37/Add.1
Page 155
Unresolved issues submitted for decision by the CRO
ISSUE No. 1  :   Content of the General Rule on Minimal Operations and Processes
A. Definitions only; No list . (CAN)(US)(PHI)(NOR)(SEN)(CH)(PHI)(HK(PHI)
The list of examples is not appropriate because the listed processes are not all related to any
common definition, and in a number of cases are at odds with product-specific rules.  As a
general matter, a list of examples should not appear in a legal text, and it would not be
possible to arrive at a permanent list; adjustment to the list would always be needed.  The list
might mislead the user to think that the listed operations never confer origin, when in fact they
are not taken into account for origin determina tion when done for the purposes set out in the
definition.
B.  List only, no definitions  (IND)
Minimal operations and processes have already been taken into account in the preparation of
the product-specific rules.  Appendix-level exclusions would override rules at the chapter and
matrix level which have been agreed to confer origin.  The list is a practical way to indicate
with specificity what does not confer origin.
C.  Both the definitions and list should be retained  (EC)(EGY)(CHI)
The debate on minimal operations or processes has demonstrated that there can be great
uncertainty as to the actual operations within the scope of the definitions.  Because it is not yet
known whether the harmonized rules of origin might include explanatory notes or other
guidance, it is useful for the understanding to include an indicative list of operations or
processes.  The preparation of an appropriate list requires the selection of examples which arenot open to doubt.
ISSUE No. 2  :   Scope of application of the General Rule on Minimal Operations or Processes
A. Applicable to Appendix 1 only  (PHI) (IND) (CH)
In Appendix 2 the issue of minimal operations or processes is addressed by a Chapter Note
(negative standards) or an individual primary ru le, where appropriate.  Therefore, there is no
need to set forth a general provision in General Rules.  Otherwise, origin conferred by such a
primary rule, which has already taken into account whether that rule may confer origin on a
good by a minimal operation or process, will be overruled by the general provision.  This will
jeopardise the intent of the rules concerned and make the determination of origin
unpredictable.
The reference to Appendix 2, Rule 3(d) should be deleted.
B: Applicable to both Appendices 1 and 2
Article 9.2(c)(i) of the Agreement provides that the Technical Committee shall develop
harmonized definitions of minimal operations or processes that do not by themselves conferorigin to a good.  This is understood to mean  that these definitions must apply to the whole
non-preferential rules of origin.  Negative standards elaborated at the Chapter level do not
have the same characteristics as the definitions of minimal operations or processes, i.e., not
necessarily the cases of facilitating transportation or packaging for retail sale only.  Thus the
General Rules must have a safety valve to prevent minimal operations or processes fromconferring origin on a good.G/RO/37/Add.1
Page 156
B/1: In Appendix 2, should be applicable to the change of classification rules only  (EC)
General Rule 5 is applicable to Appendix 2.  However, this General Rule should not overrule
the origin determination made by a specific process rule provided in Appendix 2.  The process
rules are articulated to confer origin on the particular good in any condition, if the specifiedprocess requirements are satisfied.
B/2: Applicable to all the rules  (US) (CAN)(MOR)
General Rule 5 is applicable to any single rule set forth in Appendix 2 or in the Annex as a
whole.  There is no reason to distinguish betw een Appendix 1 or Appendix 2 or between kinds
of origin rules.
ISSUE No. 3  :  Inclusion of a Provision on Neutral Elements
A  : This provision is necessary.  (EC) (US) (CAN)
By indicating elements which are never to be taken into account in the determination of origin
this text adds certainty and clarity.
B  :  This provision is not necessary.  (PHI) (HK) (SEN) (IND) (NZ)(MAL)
It is understood and agreed that the elements de scribed are not a part of origin determination;
the Agreement and the entire structure of the origin Annex are formulated on thisunderstanding.  To include such a reference is superfluous and potentially raises uncertainty.
ISSUE No. 4:    Should a de Minimis Rule be in cluded in the Harmonized Rules of     Origin?
(a) A de minimis approach is familiar to a num ber of Customs Administrations as a way to
disregard materials which otherwise would prevent an origin rule from being met.  In this
respect de minimis rules, or tolerances, give greater possibilities for primary rules to be
satisfied.  They should be a part of the harmonized rules of origin.(EC, CH, MOR, CAN)
(b) The de minimis approach is a feature of prefer ential rules of origin and has no place in these
MFN non-preferential rules.  The administrative apparatus and recordkeeping needed to
administer de minimis rules are prohibitively cost ly, and certainly too costly in relation to the
supposed benefits of such an approach.  It would be extremely difficult to set a universal
threshold, or product-specific thresholds, which reasonably identify the amount of materials
considered sufficiently unimportant to be disregarded.  (PHI, SEN, IND MAL)
Issue No. 5  :  Single or Multiple Countries of Origin for Sets
There are two principal differing views in the Technical Committee concerning the origin of sets.
A. Sets, being made up of multiple goods, are treated for origin purposes as separate goods and
the origin of each constituent good is retained. (US)
B. A set has the origin of a single country.  Proposed criteria by which this single country is
determined are as set out in the text above: coun try of origin of the article that confers the
essential character to the set (CAN); country of origin of the article in the set whichrepresents the highest value (EC); country which contributes the country which contributes
the most to the total value in terms of total value of parts and related processing
activities.(CH).  There is also a view in the TCRO that the making up alone of a set, withoutG/RO/37/Add.1
Page 157
any production of constituent articles, can mean that the origin of a set is the country in
which the set was put up.(IND, CH).
_______________
Horizontal issues contained in Doc. OC0031 to be  considered as relevant to Appendix 2 rules:
 ISSUE No.4 in doc. OC0031:
 
 CHANGE OF CLASSIFICATION BY VIRTUE OF THE APPLICATION OF THE SECOND
PART OF GIR 2(A) - COLLECTION OF PARTS
 
 NOTE :
 
4. The General Rule for the Interpretation of the Harmonized System (GIR) 2(a) provides as
follows:
 “2.(a) Any reference in a heading to an article shal l be taken to include a reference to that article
incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has
the essential character of the complete or finished  article.  It shall also be taken to include a
reference to that article complete or finished (or falling to be classified as complete or finished
by virtue of this Rule), presented unassembled or disassembled.”
 
5. This issue arises by virtue of the second part of GIR 2(a) when non-originating articles arepresented unassembled or disassembled (a set of parts classified as articles).  This issue is still valid
even if some parts are missing from the set of parts when presented, as long as those presented parts
as a whole have the essential character of the complete or finished article concerned (First part of GIR2(a)).  However, this issue is not valid when parts are separately presented to Customs, i.e., parts are
classified as parts.
OPTION A :  Yes, collecting parts is an origin conferring event under the specified conditions
(IND) (SEN)
6. The legal requirements of the Harmonized System should be strictly observed in order to
apply the Harmonized Rules of Origin.  The Agreement provides that the change of tariff
classification criterion should be based on the Harmoni zed System.  This means that the HS is being
used not only to identify a good by classification but also to judge whether or not a good undergoes a
substantial transformation by a change of classification.  Therefore if the HS is not sufficient for the
origin determination purposes, supplementary criteria should be elaborated instead of modifying theHS.  The Customs officials and traders are familiar with the current HS in force, thus if the HS is
applied for the origin determination purposes different from the way which is applicable to the
classification purposes, the Customs officials and traders would be confused.
7. A set of parts, which has the essential character of the complete or finished article, is
considered to have substantially transformed from individual parts, when these parts collected take a
form of a set with a manual or an instructional document for assembly and a guarantee by the
supplier.
8. Similar to a do-it-yourself kit or unassembled furniture, handy electronics equipment is
commonly found in this form in a market.  Origin of these sets must be the country where they are
collected and arranged as sets with a guarantee by the supplier; otherwise the same set would have
different origin depending on the place where it is finally assembled.G/RO/37/Add.1
Page 158
OPTION B : No, collecting parts is not an origin conf erring event  (US) (AUS) (JPN) (EC) (BRA)
(CAN)
9. Collection of parts should not be considered as substantial transformation.  Collection of parts
requires storing and regrouping of goods only; thus  assembly or working or processing on the parts
are not necessary.  Parts may be grouped together, but an individual part is still the same part.
10. The Chapter Note/Chapter Rule/Legal Note should be :
“[Where a change in classification results from the application of HS General Interpretative
Rule 2(a) with respect to collections of parts that are presented as unassembled articles of
another heading or subheading the individual pa rts shall retain their origin prior to such
collection.  (For goods assembled from collecti ons of parts, Note 2.C shall apply.)  (US)
(AUS)]”
or
“[A change of classification which results from the application of Rule 2(a) of the General
Rules for the Interpretation of the HS (GIR 2(a)),  with respect to a collection of parts, shall
not be considered as the change required by the rule set forth in the matrix.  (Sec)]”  Origin of
the collected parts should be determined as a good by a [general] [final] residual rule.
ISSUE No.5 in doc. OC0031:
CHANGE OF CLASSIFICATION BY VIRTUE OF THE APPLICATION OF THE SECOND
PART OF GIR 2(A) - ASSEMBLY OF THE COLLECTED PARTS
OPTION A : Yes.   (by an assembly definition)
Option A/1:  (SG)
159. Any assembly from parts confers origin on the assembled goods.
160. The Chapter rule should be:
“Obtaining goods from parts by assembly, incl uding sub-assembly, shall be considered as
reflecting last substantial transformation.”
Option A/2:  (MOR)
161. Any assembly resulting in a new good having new characteristics is considered to be
substantial transformation.
162. The Chapter rule should be:
“An assembly operation resulting in a new good having new characteristics is considered to
be substantial transformation.”
OPTION B :     Yes, provided
Option B/1: (by a value added rule)   (EC) (BRA – all goods of Chapters 84 and 86; Some goods of
Chapters 85, 87 and 90) (TUR – some goods of Chapter 85) (AUS – goods of Chapter
87) (EGY – 85.28)G/RO/37/Add.1
Page 159
163. When the collected parts are assembled, provided that the required value added (40% (EGY),
45% (EC, BRA, TUR, AUS), 51% (BRA) or 60% (EC,  BRA, AUS)) is achieved in that country as a
result of working and processing and, if applicable, the incorporation of parts originating in that
country, origin should be conferred on that article.
164. The proposed value added rules are as follows:
“the increase in value acquired as a result of working and processing and, if applicable, the
incorporation of parts originating in the country of manufacture represents at least 60 (for
some complete vehicles) or 45 (for others) percent of the ex-works price of the good is carried
out”  (EC) (TUR) (AUS)
“the increase in value acquired as a result of working and processing and, if applicable, the
incorporation of parts originating in the country of manufacture represents at least 60% for all
goods of Chapters 84 and 86; 60% for some goods of Chapter 85; 60% of some goods of
Chapter 87; 45%, 51% or 60% for some goods of Chapter 90”  (BRA)
“40% value added”  (EGY) (SEN)
165. If neither the required value added nor the change of tariff classification rule is satisfied a
[general] [final] residual rule is applied.  (EC) (TUR) (BRA) (EGY)
166. Origin conferred by application of the value added rule should not be nullified by the negative
standards for a non-origin-conferring assembly.  When the required value added rule is not met or the
value added rule is not set out, the “5 parts” rule, the specified process rule, the use of one originating
part rule and a [general] [final] resi dual rule apply in sequence. (AUS)
Option B/2:  (by a cascading approach)  (US)
167. When a collection of parts occurred in one country, the individual parts shall retain their
origin prior to such collection by application of a Chapter [Legal] Note.  If the collected parts are
assembled there is no change in classification after the assembly.  Thus a change of classification rule
is not applicable.  Origin of the assembled good from the collected parts is determined by applicationof the “5 parts” rule with negative standards for a non-origin-conferring assembly, the specified
processes with negative standards for a non-origin-conferring assembly, or the use of at least one
originating part with negative standards for a non-origin-conferring assembly.
168. The Chapter [Legal] Note should be:
“[Where a change in classification results from the application of HS General Interpretative
Rule 2(a) with respect to collections of parts that are presented as unassembled articles of
another heading or subheading the individual pa rts shall retain their origin prior to such
collection.  (For goods assembled from collections of parts, Note 2.C shall apply.)]”
Option B/3:  (by a Chapter Note and a change of tariff classification rule) (JPN) (CAN) (HK) (CH)
169. Assembly of the collected parts should be treated the same as assembly of separately
imported parts.  Application of a change of tariff classification rule should not be foregone depending
on whether or not parts are presented together and satisfy the requirements of GIR 2(a).  Therefore, a
Chapter Note should be set out to deal with this qu estion first, and a change of tariff classification rule
determines origin of the collected parts.
170. The Chapter Note should be:G/RO/37/Add.1
Page 160
“A good assembled from a collection of parts that are classified by virtue of the application of
GIR 2(a) in the same heading or subheading as the good shall have origin in the country
where, subject to paragraph [next], the relevant rule or note set out in the Appendix is
satisfied.
The change of classification that may be required by the relevant rule in the matrices is
considered to have taken place in the country in which the good is assembled from the
collection of parts.”
OPTION C : No  (IND)
171. The legal requirements of the Harmonized System should be strictly observed in order to
apply the Harmonized Rules of Origin.  The Agreement provides that the change of tariffclassification criterion should be based on the Harmoni zed System.  This means that the HS is being
used not only to identify a good by classification but also to judge whether or not a good undergoes a
substantial transformation by a change of classification.  Therefore if the HS is not sufficient for the
origin determination purposes, supplementary criteria should be elaborated instead of modifying the
HS.  The Customs officials and traders are familiar with the current HS in force, thus if the HS isapplied for the origin determination purposes different from the way which is applicable to the
classification purposes, the Customs officials and traders would be confused.
172. A collection of parts, which has the essential character of the complete or finished article, is
considered to have substantially transformed from individual parts, when these parts collected take aform of a set with a manual or an instructional document for assembly and a guarantee by the
supplier.
173. Origin of these collections, even though finally assembled elsewhere, must be the country
where they are collected and arranged as sets with a guarantee by the supplier; otherwise the same setwould have different origin depending on the place where it is finally assembled.
ISSUE No.6 in doc. OC0031:
CHANGE OF CLASSIFICATION BY VIRTUE OF PACKAGING OR REPACKAGING OF
GOODS
NOTE:
11. It should be noted that the proposed General Rule 5 (minimal operations or processes)
provides one of the minimal operations or processes as follows:
“[(iii) operations or processes that concern the packaging or presentation of goods for
sale.]”
12. This issue refers to a change of classification by virtue of packaging or repackaging.
Therefore, this issue does not cover whether or not the “value acquired as a result of working orprocessing” includes the cost of packaging or repackaging.  It should also be noted that the Secretariat
(Tariff and Trade Affairs Directorate) is of the vi ew (NC0008E1) that a rep ackaging would not lead to
a change of classification.  At its 23
rd Session the HS Committee took note of this.  However, to
ensure that in all cases a packaging or repackaging cannot be considered as an origin conferring event
a Chapter Note is proposed.
OPTION A : Yes.G/RO/37/Add.1
Page 161
13. If a change of classification by virtue of packaging and repackaging is not an origin
conferring event, such a change should be explicitly excluded from a change of classification rule.
Otherwise, once a change of tariff classification rule is set forth in the matrix and the rule is satisfied
by any cause, origin should be conferred.
OPTION B : No.  (US) (AUS) (SEN)
14. A change of classification by virtue of packaging and repackaging should not be considered
as substantial transformation. Packaging and repackaging does not require any assembly or working
or processing on the good itself.  A good may be packed or repacked, but the good is still the same
good.
15. The Chapter Note/Chapter Rule/Legal Note should be:
[Where a change in classification results from packaging or repackaging the origin of the
good shall be the origin prior to such packaging or repackaging. (US) (AUS)]
ISSUE No.9 in doc. OC0031 :
CHANGE OF CLASSIFICATION BY VIRTUE OF:  CHANGE OF USE
NOTE
16. It is understood that application of the HS GIR and other legal notes provides that the actual
use of a good would not result in a re-classification.  It should also be noted that the Secretariat (Tariff
and Trade Affairs Directorate) is of the view (N C0008E1) that a change of use of a good would not
lead to a change of classification.  At its 23rd Session the HS Committee took note of this.  However,
to ensure that in all cases a change of use cannot be considered as an origin conferring event a ChapterNote is proposed.
17. This issue is different from the issue of modification of goods.  Modification is considered as
part of assembly processes; a change of use is considered to be a case caused by a cross-boarder
transfer of goods which might be classified in a different heading or subheading depending on theintended use in the importing country.
OPTION A : Yes.
18. So far there is no Member who supports this option.  However, the TCRO has not decided yet
that a change of classification by a change of use is not an origin conferring event.
OPTION B : No.
19. A change of classification by virtue of a change of use is not considered as substantial
transformation.
20. The Chapter Note/Chapter Rule/Legal Note should be :
[a change of classification which results from the change of use of the good shall not be
considered as the change required by the rule set forth in the matrix.  (SEN)]
ISSUE No.11 in doc. OC0031:G/RO/37/Add.1
Page 162
ORIGIN OF A DISASSEMBLED OR RECOVERED PART OR A REMOVED ARTICLE
FROM THE GOOD THAT WOULD HAVE PERFORMED ITS ORIGINAL PURPOSE OR
WOULD HAVE BEEN RESTORED OR REPAIRED
NOTE
21. It has been agreed that disassembly is not an origin conferring event.  This issue deals with
origin of a disassembled (recovered) part or a removed article from the good that would have
performed its original purpose or would have been restored or repaired.  Thus this issue covers parts
or articles which are not subject to Definitions f), g) and h) of the wholly obtained goods.
22. Chapter Note/Rule was proposed to cover this issue as follows:
“Disassembly    ( not origin conferring )
A change of classification which results from the disassembly of the good shall not be
considered as the change required by the rule set forth in the matrix.   (Basket 1)
[(1) A change of classification which results from the disassembly of the good that can
perform its original purpose shall not be considered as the change required by the rule set
forth in the matrix.  The parts recovered from the good shall retain the country of origin of the
good prior to disassembly.
(2) A change of classification which results from the disassembly of the good that cannot
perform its original purpose without being restored or repaired shall not be considered as the
change required by the rule set forth in the ma trix.  The country of origin of the recovered
parts shall be (one among the following options (US):
[(a) the country where the parts are recovered]  (SEN)
[(b) the country of origin of the good from which the parts are recovered]  (CAN)[(c) the initial country of origin of the parts].  (IND)]”
OPTION A : (by Chapter Note/Rule (a))  (SEN)
23. A change of classification which results from the disassembly of the good that would have
performed its original purpose or would have been restored or repaired shall not be considered as the
change required by the rule set forth in the matrix.  However, the parts recovered from the good or the
articles removed from the good should have origin in the country where the parts or the articles arerecovered.  This approach is the most practical and administratively less burdensome.  This approach
is the same as Definition (h), Alternative 1 of the wholly obtained goods.  (Disassembly confers origin
on the disassembled goods.)
OPTION B : (by Chapter Note/Rule (b))  (CAN)
24. A change of classification which results from the disassembly of the good that would have
performed its original purpose or would have been restored or repaired shall not be considered as the
change required by the rule set forth in the matrix.  The parts recovered from the good or the articles
removed from the good shall retain the country of origin of the good prior to disassembly.  Ifdisassembly does not confer origin on a disassembled good this approach should be taken.  The
proposed rule (c) is difficult to implement, due to the fact that not all parts or articles have the
marking of the country of origin.G/RO/37/Add.1
Page 163
OPTION C : (by Chapter Note/Rule (c))  (IND)
25. A change of classification which results from the disassembly of the good that would have
performed its original purpose or would have been restored or repaired shall not be considered as the
change required by the rule set forth in the matrix.  The parts recovered from the good or the articles
removed from the good shall retain the initial country of origin of the parts or the articles.  Ifdisassembly does not confer origin on a good this approach is theoretically correct.  When the country
of origin of the part or article is marked on its surface, this approach does not confuse the
manufacturers or traders.
OPTION D :  (by application of Appendix 2, Rule 2)  (EC)
26. A change of classification which results from the disassembly of the good that would have
performed its original purpose or would have been restored or repaired shall not be considered as the
change required by the rule set forth in the matrix.  It is not necessary to have a provision in the
Chapter Notes/Rules to deal with this issue.  The origin of the parts recovered from the good or of the
articles removed from the good is determined by a [g eneral] [final] residual rule set forth in Appendix
2, Rule 2.  [A rule to be finalised]G/RO/37/Add.1
Page 164
ANNEX IJ
As decided by the Technical Committee,  Doc. OC0021 relating to the Permanent
Responsibilities of the Technical Committee is re produced as Annex IJ to the Report on the 17th
Session.G/RO/37/Add.1
Page 165
Introduction
1. This paper has been prepared by the Secretariat to provide the Technical Committee with
background information and suggestions on the tasks entrusted to the Technical Committee as
“permanent responsibilities” under the Agreement.  The Technical Committee’s permanent
responsibilities are rather broadly stated in Appendix 1 to the Agreement on Rules of Origin (theAgreement); this paper is intended to help the Technical Committee in preparing a concrete
programme of work to meet its responsibilities under the Agreement.
Assignment of Responsibilities under the Agreement
2. The basic institutional arrangements of the Agreement are set out in Art. 4, subparagraphs 1
and 2, which provide respectively for the establishment of the Committee on Rules of Origin  (theCommittee) and the Technical Committee on Rules of Origin (the Technical Committee).  Each
committee is authorized to request information and advice from the other, and to request work from
the other appropriate for the furtherance of the objectives of the Agreement.  Apart from work which
might be requested of it by the Committee, Art. 4 specifies the Technical Committee’s responsibilities
as those enumerated in Art. 9 (harmonization) and Appendix 1 to the Agreement.
3. During the course of the Harmonization Work Programme (HWP) the Technical Committee
has been obliged to devote substantially all of its resources to preparing harmonized non-preferential
rules of origin.  Art. 9 of the Agreement sets out the terms of reference under which the Technical
Committee fulfills its responsibilities for the HWP.
4. The Technical Committee is also assigned, pursuant to Annex 1 of the Agreement, certain
permanent responsibilities, which are in addition to those under the HWP.  These permanent
responsibilities include the following:
(a) At the request of any Member of the Technical Committee, to examine specific
technical problems that may arise in the day-to-day administration of rules of origin
and to give advisory opinions on appropriate solutions based upon the facts presented;
(b) To furnish information and advice on any matters concerning the origin determination
of goods as may be requested by any Member or the Committee;
(c) To prepare and circulate periodic reports on the technical aspects of the operation and
status of the Agreement;
(d) To review annually the technical aspects of the implementation and operation of Part
II (Disciplines to govern the application of Rules of Origin) and Part III (ProceduralArrangements) of the Agreement;
5. The Technical Committee is also mandated pursuant to Appendix 1 to take up such other
responsibilities as the Committee on Rules of Origin may request of it.
6. Separately enumerated in Art. 6 of the Agreement, but closely related to the Appendix 1
permanent responsibilities, is the responsibility of the Technical Committee, in Co-operation  with the
Committee, to set up and administer a review mechanism to consider and propose amendments to the
harmonized rules of origin.  The Technical Committee’s role in this mechanism for review and
amendment is to prepare the technical basis for this work.  Review and amendment is a permanentfeature in the administration of the instrument to take on board new operational and technological
requirements.G/RO/37/Add.1
Page 166
7. The subject-matter of the Technical Committee’s permanent responsibilities as enumerated in
Annex 1 of the Agreement may therefore be understood to consist of:
- specific technical problems arising in day-to-day administration of rules of origin;
- the origin determination of goods;
- technical aspects of the operation and status of the Agreement;  and finally,- technical aspects of the implementation and operation of the transitional and post-transitional
disciplines (set out in Part II, Arts. 2 & 3), as well as technical aspects of the implementation
and operation of the procedural arrangements on notification, review, consultation and dispute
settlement (set out in Part III, Arts. 4-8).
8. In the context of the Agreement as a whole and its objectives, and in the context of Art. 6,  the
Technical Committee will also have ongoing responsibility for the technical aspects of the review andamendment mechanism.  In practice, there may be considerable overlap between  the tasks
enumerated as permanent responsibilities in Appendix and the work of  review and amendment under
Art. 6.
9. In sum, the Technical Committee has particular responsibility for the technical aspects of
implementation and administration of the harmonized rules of origin, the related disciplines, and the
institutional arrangements.  In major part these responsibilities are already assigned under the
Agreement, and it is now appropriate for the Technical Committee to consider how they are to be
taken up.
Identifying the Technical Committee’s Priorities for Implementation and Administration
10. As it approaches completion of its assignment under the HWP, and the end of the
Agreement’s transitional period, the Technical Committee’s permanent responsibilities with respect to
implementation and administration of the harmonized rules of origin will assume greater importance.The WCO, in keeping with its responsibilities under the CCC Convention to examine the technical
aspects of Customs systems with a view to proposing practical means of attaining the highest possible
degree of harmony and uniformity, intends to devote substantial resources to matters of
implementation and administration.
11. Members might find it helpful to identify two categories of  tasks: 1) those which must be
completed to ensure implementation; and 2) those which relate more to the long term institutional
arrangements for administration.  It seems obvious as a matter of timing that steps to further
understanding and international acceptance of the harmonized rules of origin as an instrument should
have the first priority.  Setting up the mechanisms to support long term administration of the
instrument could be treated as a separate phase.  In suggesting this distinction between
implementation and administration the Secretariat recognizes that some of the specific tasks will havea bearing upon the achievement of both objectives.  There may thus be a degree of overlap in the
itemized tasks suggested.
Scenarios for Implementation of the Harmonized Rules of Origin
12. The final phases of the HWP – decisions on unresolved questions, endorsements of agreed
texts, and the final review for overall coherence – will be principally the responsibility of the
Committee on Rules of Origin.  In the context of the HWP the Technical Committee may be called
upon by the Committee to refine or elaborate its work or to develop new approaches in accordance
with Art. 9 paragraph 3.
13. As a matter of prudence and good management, the Technical Committee should, while the
HWP is still in its final phases, focus on its permanent responsibilities in respect of implementation of
the Harmonized Rules of Origin.  Drawing upon Parts II and III of the Agreement (Arts. 3 through 8),G/RO/37/Add.1
Page 167
it would appear that the technical aspects of implementation which are not encompassed within the
HWP itself include the following tasks:
- Assessing whether the necessary mechanisms are in place within Customs Administrations to
ensure that the rules can be administered with consistency, uniformity, impartiality and
reasonableness.  As part of this task, the Technical Committee and WCO could serve as a
resource for Members as they prepare domestic implementing legislation.
- Preparing practice manuals and/or user guides.  Such publications would be of benefit both to
Customs Administrations and to other us ers of the Harmonized Rules of Origin.
- Studying and preparing recommendations on the use of documentation in origin
determinations.  Some Members are familiar with origin systems which rely upon certificates
of origin, while others have indicated that standard commercial information includes all therequisites.  Implementation of these rules would be much facilitated by the adoption of
definite policies on this issue.
- In co-operation with the Committee, setting up a review mechanism to consider amendments
to the rules.
- Preparing recommendations as to how the Technical Committee might be of assistance in
consultation and dispute settlement proceedings.
14. The Technical Committee’s overall approach to implementation of the Harmonized Rules of
Origin will need to take account both of the needs of Customs Administrations and of the many
different kinds of users of the rules, i.e., exporters, importers, manufacturers, investors and others.
Even though the instrument itself will have been designed to promote the objectives of the
Agreement, the implementation phase will offer many further opportunities for the Technical
Committee to promote the fulfilment of those objectives.
Permanent Responsibilities of Administration
15. The Technical Committee and WCO are well situated to provide an institutional structure for
the maintenance and administration of the harmonized rules of origin as a technical instrument.  Theoverall role of the Technical Committee might be seen as quite comparable to those of the
Harmonized System Committee and the Technical Committee on Customs Valuation.
16. The review mechanism to be established pursuant to Art. 6 of the Agreement in co-operation
with the Committee will be a key feature of the permanent institutional structure.  To a considerable
extent, operational issues and technological changes in production processes will prompt proposals for
amendment.  The Technical Committee would likely assume  substantial responsibility for assessing
and preparing the appropriate amendments. The Technical Committee has already discussed in the
context of the overall architecture a mechanism to reflect amendments to the HS in the origin rules;
this consideration needs to be extended to amendments reflecting operational considerations and
technological changes.  In respect of the relationship between the HS and the rules of origin, the WCO
Secretariat would be in a position to propose mechan isms for the consideration of both the Technical
Committee and the Harmonized System Committee.  As previously noted in the Technical
Committee, synchronization and the use of comm on criteria would appear to be of benefit.
17. There is thus a present requirement for the Technical Committee to develop the terms of
reference under which it would carry out this work of regular review under Art. 6.
18. Relatedly, but as separately provided for in Art. 1 of Appendix 1 to the Agreement, the
Technical Committee is permanently responsible for: 1) examining, at the request of any Member of
the Technical Committee, specific technical problems of day-to-day administration and givingG/RO/37/Add.1
Page 168
advisory opinions on appropriate solutions; and 2) providing information and advice on any matters
concerning origin determination as may be requested by any Member of the Committee.  Here the
Technical Committee has responsibilities similar to those of the Harmonized System Committee in its
preparation of classification decisions and the Technical Committee on Customs Valuation in its
preparation of advisory opinions.  Over time, the Technical Committee might be expected, through
the accumulation of experience and precedents, to deepen its role as the key institution on technicalmatters of administration.  It would become, under the auspices of the WCO, a depository of
documentary resources and would take responsibility for appropriate dissemination of such materials.
19. Another kind of specific technical task might be assigned to the Technical Committee.  Still
to be determined in consultation with the Committee is whether, and if so, to what extent, the
Technical Committee might provide support to the WTO consultation and dispute settlement
procedures for rules of origin.  It is noted that under the Valuation Agreement a party to a dispute or apanel may request the Technical Committee on Customs Valuation to examine questions requiring
technical consideration
Conclusion
20. The Technical Committee is invited to examine the observations and suggestions set out
above, and to instruct the Secretariat as to the preparation of appropriate working documents for
examination in future sessions.
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