RESTRICTEDWORLD TRADE
ORGANIZATIONG/RO/W/64
30 April 2001
(01-2183)
Committee on Rules of Origin Original:  English
CHAPTER RESIDUAL RULES FOR AGRICULTURAL PRODUCTS
RESULTING FROM MIXING
(HS CHAPTERS 1-24)
Proposal by the European Communities
The following communication, dated 27 April 2001, has been received from the Permanent
Delegation of the European Communities.
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Introduction
At its 17th Session (17-28 May 1999), the Technical Committee on Rules of Origin (TCRO)
examined the outstanding issues concerning the rules of origin for agricultural products (HS Chapters1-24).  Although certain delegations had informed the TCRO that specific proposals on the residual
rules for those chapters would be submitted at a later stage, the TCRO decided, on the basis of the
plan adopted to finalize the Harmonisation Work Programme
1 to submit the results of this
examination to the Committee on Rules of Origin (CRO) within the time limits set.  It was, however,
pointed out that in the absence of specific proposals and final results concerning the determination oforigin in Appendix 2 (overall architecture), the Members retained the right to submit proposals on
Chapters 1 to 24 at a later stage.
It is in this context that the EC submits  the present document that contains a proposal
concerning the horizontal problem of determining the origin of agricultural products resulting fromthe mixing of components of different origins.
Chapter residual rule for determining the origin of mixed agricultural products
As a result of the primary rules adopted to date, the mixing of agricultural products is, in
general, not considered to be a substantial transformation.  Consequently, the origin of such a mixture
has to be determined by means of a residual rule. Due to the particular situation of agriculturalproducts, arising both from the sensitivity of the sector and from the significant variety of mixtures
obtained, the general residual rule referred to in Rule 3 (f) of Appendix 2 of the Overall Architecture
(the so-called "major portion" rule) cannot be applied.  Therefore, a specific residual rule has to be
established for these mixtures.  The EC is of the opinion that the most appropriate solution to this
mixture problem is a residual rule specified at chapter level referred to in Rule 3 (d) of Appendix 2.
The EC is proposing that, in the matrix, the foll owing residual rule be placed at the beginning
of each of the chapters covering agricultural products :
"Chapter residual rule applicable to mixtures
                                                     
1 The CRO requested the TCRO to submit the final results of its work by May 1999.G/RO/W/64
Page 2
1.  For the purposes of this residual rule, "mixing" means the deliberate and proportionally
controlled operation consisting in bringing together two or more identical or different
fungible materials.
2.  The origin of a mixture of agricultural products shall be the country of origin of the
materials that account for more than X % by volume/weight of the mixture.  The
volume/weight of materials of the same origin shall be taken together.
3.  When none of the materials used meet the percentage required, the origin of the mixture
shall be the country in which the mixing was carried out."
Units of measure and percentages to be applied
- Units of measure
For the purpose of fixing the level at which materials originating in a country can be
considered as determining the origin of the mixture, the unit of measure to be used shall be the
volume or the weight (including the weight of dry matter).  These elements are known to the producer
of the mixture and can be easily checked.  The unit of measure shall be specified in each Chapter.
The proposed units of measure are given in the Annex.
- Percentages
In general, the minimum percentage required shall be fixed at 50 %.  Setting this level implies
that a country should contribute more than half of the materials used in order to be decisive for the
origin of the mixture.  As stated above, when this condition is not fulfilled, the product is originatingin the country in which the mixing operation is carried out.
However, in order to take account of the specific nature of certain products, higher
percentages might be required.  The EC has two proposals in this context :
- for wine and spirits (ex heading 2204 and ex heading 2208), the minimum percentage
required is fixed at 85 % in volume of the mixed product;
- for olive oil (heading 1509), the minimum percentage required is fixed at 75 % in weight of
the mixed product.G/RO/W/64
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ANNEX
UNITS OF MEASURE
HS CODE DESCRIPTION UNIT
Chapter 2 Meat and edible meat offal Weight
Chapter 3 Fish and crustaceans, molluscs and other aquatic invertebrates Weight
Ex Chapter 4
0401 to 0404Butter, dairy spreads, cheese and curd; birds' eggs ; natural honey
; edible products of animal originDairy produce, except butter and cheeseWeight
Weight of dry
matter
Chapter 5 Products of animal origin, not elsewhere specified or included Weight
Chapter 6 Live trees and other plants ; bulbs, roots and the like ; cut flowers
and ornamental foliageValue
Chapter 7 Edible vegetables and certain roots and tubers Weight
Chapter 8 Edible fruit and nuts ; peel of citrus fruits or melons Weight
Chapter 9 Coffee, tea, mate and spices Weight
Chapter 10 Cereals Weight
Chapter 11 Products of the milling industry ; malt ; starches ; inulin ; wheat
glutenWeight
Chapter 12 Oil seeds and oleaginous fruits ; miscellaneous grains, seeds and
fruit ; industrial or medicinal plants ; straw and fodderWeight
Chapter 13 Lac ; gums, resins and other vegetable saps and extracts Weight
Chapter 14 Vegetable plaiting materials ; vegetable products not elsewhere
specified or includedWeight
Chapter 15 Animal or vegetable fats and oils and their cleavage products ;
prepared edible fats ; animal or vegetable waxesWeight
Chapter 16 Preparations of meat, of fish or of crustaceans, molluscs or other
aquatic invertebratesWeight
Chapter 17 Sugars and sugar confectionery Weight
Chapter 18 Cocoa and cocoa preparations Weight
Chapter 19 Preparations of cereals, flour, starch or milk ; pastrycooks'
productsWeight
Ex Chapter
20
2009Preparations of vegetables, fruits, nuts or other parts of plants
Fruit juices (including grape must) and vegetable juices,
unfermented, whether or not containing added sugar or other
sweetening matter.Weight
Weight of dry
matter
Chapter 21 Miscellaneous edible preparations Weight
Chapter 22 Beverages, spirits and vinegar Volume
Chapter 23 Residues and waste from the food industries ; prepared animal
fodderWeight
Chapter 24 Tobacco and manufactured tobacco substitutes Weight
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