RESTRICTED
WORLD TRADE G/RO/W/23
3November 1997
ORGANIZATION(97-4778)
Committee onRules ofOrigin
REVISED NEGOTIATING TEXT FOR CHAPTERS 25-27, 41-43 AND 91
Harmonization Work Programme
Note bytheSecretariat
1. Thisdocument isthemostrecent update ofthenegotiating textforChapters 25-27, 41-43 and
91(originally indocument G/RO/18/Add.1 andG/RO/19/Add.1), andgives afullpicture ofthe
unresolved issues related tothese Chapters.
2. Atitsmeeting on3October 1997, theCommittee onRules ofOrigin examined unresolved
issues concerning Chapters 25-27, 41-43 and91which were transmitted totheCommittee bythe
Technical Committee intheEighth Report bytheTechnical Committee onRules ofOrigin tothe
Committee onRules ofOrigin (G/RO/18 andAdd. 1).Asaresult oftheexamination, theCommittee
agreed torevise theproposed origin criteria ofex25.30(b), ex26.01(a) toex26.17(a), ex26.01(b) to
ex16.17(b), 2701.20, 2708.20, ex91.08 andex91.09.
3. AtitsNinth Session from8to26September 1997, theTechnical Committee reached consensus
ontheorigin ruleof2517.20 andthedefinition on"chemical" reaction concerning chapter 27(Basket 1
decisions). These rules have been transmitted totheCommittee forapproval (G/RO/19 and
G/RO/19/Add.1). TheTechnical Committee alsoagreed that,onproduct-specific rulesofHSheadings
41.04 to41.07, thetechnical discussion hadbeenexhausted without reaching aconsensus; these
unresolved issues were transmitted totheCommittee (G/RO/19 andG/RO/19/Add.1) fordecision.G/RO/W/23
Page2
UNRESOLVED ISSUES SUBMITTED FOR DECISION BYTHE COMMITTEE
ONRULES OFORIGIN FOR CHAPTERS 25-27
ISSUE FOR DECISION, NO.1
1. Istheproduction ofcement from clinker asubstantial transformation?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
2. Theobtaining ofcement from clinker isasubstantial transformation. Theruleoforigin for
thecement ofsubheadings 2523.21 -2523.90 should bebased onachange ofsubheading from
theclinkers ofsubheading 2523.10. Thefollowing technical information hasbeenprovided
insupport ofthisoption:
3. Characteristics ofclinkers andcement: Cement andclinkers aretwodifferent articles of
commerce withdifferent character andproperties, usesandname. Clinkers areobtained from
firing limestone containing asuitable proportion ofclay. Clinkers consist mainly ofcalcium
silicates inpebble form. Theclinkers cannot beusedasabuilding material unless transformed
intocement. They donothavethesame bonding effect ascement when mixed withfineand
coarse aggregates toproduce concrete foruseinconstruction. Cement, ontheother hand,
hastomeetcertainspecificationslikeminimumfinenessof225m²/kgandminimumcompressive
strength inorder tobeusedinconcrete work. Various types ofcement canbeproduced from
thesame clinkers. Toobtain cement fromclinkers, theclinkers havetobeground tohigher
fineness andinterground ingredients andadditives areintroduced during thegrinding process.
Itisconsidered thatitisthefactofanewproduct andnottheprocess which determines that
asubstantial transformation hasoccurred.
4. Production ofcement: Itisthetransformation from clinkers tocement which isthelast
substantial transformation toobtain cement. Toprepare thefinalproduct, cement, theremay
beseveral transformations. Origin should beconferred based onthelastsubstantial
transformation. Theproduction ofclinkers tocement involves grinding under precise control
oftemperature inthefinish milltoprevent agglomeration. Gypsum andinterground ingredients
suchasslagforPortland BlastFurnace Cement, limestone formasonry cement, andmaterials
likecoalflyashandsilica fume aremixed during thegrinding process. Theprocess hasto
beprecise toachieve certain specifications suchasminimum compressive strength andfineness.
5. Thegrinding process effectively transforms clinker intoanewfinished product, cement, which
canthenbeusedforconcrete work. Thefinished product, cement hasdifferent properties
compared toclinkers. Cement should satisfy certain chemical properties depending onthe
finaluseofthecement. Thetechnical precision oftheendproduct suchasprecise andequal
particle sizefineness andminimum compressive strength toconform withindustry standards
forcement andfortheproduct tofulfilitsfunction wereimportant inidentifying anewproduct.
6. Inresponse totheproposition thatgrinding alone isnotsubstantial transformation, itisargued
thatfirstly, grinding isnotasimple operation. Itrequires highconsumption ofenergy and
precise control ofthetemperature inthefinish mill. Fortheproduction ofcement, theclinkers
havetobegrounded toaprecise particle sizeandfineness inorder toconform toindustry
standards ofminimum compressive strength. Secondly, grinding isalways combined with
otherprocesses including theproportionally controlled mixing andblending withothermaterials
suchasblastfurnace slag,andthattheentire process represents substantial transformation.G/RO/W/23
Page3
Itwasfurther stated thatthereisnotradeinground clinkers notfurther processed intocement
andthatsuchground clinkers were anintermediate product thatcould notbeusedforany
purpose other thanfurther processing intocement.
OPTION B:
7. Theprocess toprepare cement from clinker isnotasubstantial transformation. Theruleof
origin forthecement ofsubheadings 2523.21 -2523.90 should bebased onachange ofheading
from theminerals ofheadings 25.21 -25.23.
8. Clinker isprepared fromprimary rawmaterials including limestone, clay,shale andironore.
Theprincipal stepsinmanufacturing clinker consist ofcrushing, grinding, mixing, andburning
rawmaterials tomake clinker. Theclinker isthenground tomake powdered cement. Achange
fromclinker ofsubheading 2523.10 tocements ofsubheadings 2523.21 to2523.90 doesnot
entail asubstantial transformation. Infacttheprocesses required toprepare clinkers aremore
varied andcomplex thanthegrinding necessary toconvert theclinker intopowdered cement
9. Production ofcement from clinker isa“simple ”process. Itismerely ground toreduce the
sizeofclinkers tocement. Grinding alone isnotconsidered asubstantial transformation. It
wasnoted thattheHSsubheading explanatory notedefines “Portland cement ”as“cement
obtained bygrinding Portland clinker withthepossible addition ofasmall quantity ofcalcium
sulphate ”andthatitmight benecessary todefine supplementary criteria toqualify therule
inorder toseparate “simple ”grinding.
Relevant HScodenumber
10. Subheadings 2523.21 (Portland cement: white cement, whether ornotartificially coloured),
2523.29 (Portland cement: other), 2523.30 (Aluminous cement) and2523.90 (Other hydraulic
cements)
References
11. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
Reference document (Doc. 39.861/Add 7,pages 4to5)
Reference document (Doc. 41.252, Appendix 2)
Reference document (Doc. 41.506)
ISSUE FOR DECISION, NO.2
12. Isthecrushing orpowdering ofnatural steatite andtalcasubstantial transformation?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
13. Thecrushing orpowdering ofnatural steatite ortalcisasubstantial transformation. Therule
oforigin should bebased onachange atsubheading levelform thenotcrushed orpowdered
material of2526.10.G/RO/W/23
Page4
14. Thekeyelement forconsideration indeciding ifasubstantial transformation hadoccurred by
crushing orpowdering wasthattheendproduct hadadifferent character anduses. The
complexity oftheprocess itself wasnotaprimary factor inthisdecision andshould notbe
given much emphasis. Thetechnical precision oftheendproduct suchasprecise andequal
particle sizefortheproduct tofulfilitsfunction wereimportant inidentifying anewproduct.
OPTION B:
15. Merely grinding isnotconsidered tobring about asubstantial transformation. Thecountry
oforigin iswhere thegood isobtained initsnatural orunprocessed state.
Relevant HScodenumber
16. Subheadings2526.20(Naturalsteatite,whetherornotroughlytrimmedormerelycut,bysawing
orotherwise, intoblocks orslabs ofarectangular (including square) shape; talc:crushed or
powdered)
References
17. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
ISSUE FOR DECISION, NO.3
18. Istheprocessing ofmolybdenum oreintomolybdenum concentrate (lubricant) of25.30 a
substantial transformation?
19. Theprocessing ofmolybdenum oreintomolybdenum concentrate (lubricant) of25.30 isa
substantial transformation.
20. TheMolybdenite concentrates classified inheading 25.30 areobtained frommolybdenum ores
(26.13)bycertainphysicaltreatmentssuchaswashing,grinding,flotationandbyheattreatment,
other thancalcination, designed todrive offtraces ofoilandwater, fornon-metallurgical uses
(lubrication). Other Molybdenite concentrates obtained bycalcination orroasting remain
classified withtheoreinheading 26.13. Because different methods ofprocessing theores
havebeenuseditisnotpossible toreclassify between theheadings asaresult ofadecision
onchange ofuse. Itisnotnecessary therefore toprovide anexclusion ofchange from
molybdenum concentrates of26.13 andtheruleoforigin should beCTH toprovide for
manufacture from themolybdenum oreof26.13.
21. Theconclusion thatasubstantial transformation hasoccurred isbased firstly ontheconclusion
thatanewproduct withnewusesandcharacteristics hasbeenproduced. Thenature ofthe
process andhowcomplex isnotadecisive factor.
Relevant HScodenumber
22. Partofheading 25.30 (Mineral substances notelsewhere specified orincluded)
References
23. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)G/RO/W/23
Page5
ISSUE FOR DECISION, NO.4
24. Istheconversion ofmetal oresintoconcentrates, including bycalcination orroasting, a
substantial transformation?
25. Metal oresextracted fromthemines arealways accompanied bysuchunwanted matter asmud,
dirtandgangue which canaddtothecosts oftransport orhamper subsequent metallurgical
operations. Toremove suchunwanted matter, metal oresarenormally converted intometal
oreconcentrates. Concentration isasubstantial transformation oftheoreandtheruleoforigin
should bebased onachange within theheading.
26. Theconcentration oforesisaprocess toenrich theorebyaseries ofoperations applied
sequentially intwophases: mechanical preparation byprimary crushing, screening, secondary
crushing andscreening, tertiary crushing andscreening, grinding tolessthan0.4mm tofree
theorecompletely; separation phase: byeither gravity process, magnetic separation orflotation
withchemical reagents. Anorecancontain aslittleas5-15% ofthemain material anditis
noteconomical toshipinthisform. Itistherefore normal toconcentrate theproduct. Generally
thisisdonenearthemine, butnotalways. Itistherefore possible thattwocountries maybe
involved intheobtaining oftheoresandoftheconcentrates oftheores. Itisacomplicated
process andthefactthatitnormally happens inthesame country isnotrelevant totheissue
ofsubstantial transformation which should bebased onthefactofproduction ofanewproduct:
aconcentrate.Otherphysicalorphysico-chemicaloperationsforconcentrationincludemagnetic
separation, gravimetric separation, flotation, screening, settling andfiltering. Calcination or
roasting arealsomethods ofconcentration considered tobesubstantial.
27. Itispossible thatseveral minerals canbefound together intheoreandconcentration inthis
casealsoseparates thedifferent metals toproduce aproduct withanewanddifferent character
anduse.Theproduct acquires anewstatus. Itisnotnecessary fortheruletospecify certain
processes assubstantial transformation.
28. Itisrecognised thatthere isadifference inthecharacter ofanaturally occurring high
concentration orethatisobtained inthatformfromtheground andconcentrates obtained from
lowgrade orebyprocessing. Theformer originates inthecountry where itisobtained inits
natural orunprocessed stateandthelatter, which hasbeensubstantially transformed, originates
inthecountry where theconcentration takes place.
Relevant HScodenumber
29. Headings 26.01 to26.17 (Ores andconcentrates)
References
30. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
Reference document (Doc. 41.384, page2)
Reference document (Doc. 41.424, page17)
ISSUE FOR DECISION, NO.5
31. Istheproduction ofbriquettes, ovoids andsimilar solid fuels manufactured from coala
substantial transformation?G/RO/W/23
Page6
32. Themanufacture ofbriquettes, ovoids andsimilar solid fuelsfrom coalisconsidered tobe
asubstantial transformation. Theruleshould beCTSH toprovide forprocessing from the
coalofthesame heading.
33. Theprocess callsforcomplicated operations including crushing coal, subjecting thecoalto
lowtemperature carbonisation toproduce coalchar, mixing itwithbindmaterials, pressing
itintoshape asbriquettes orovoids orother shapes anddrying. Furthermore, theresultant
goods, which canbeignited easier canbeburnt stronger, canemitlesssmell andcanbe
preserved longer thantheoriginal goods, andhasthusbecome anewproduct.
Relevant HScodenumber
34. Subheading 2701.20 (Briquettes, ovoids andsimilar solid fuelsmanufactured from coal)
References
35. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)
Reference document (Doc. 39.861/Add. 6,page4)
Reference document (Doc. 41.351, page10)
Reference document (Doc. 41.384, page2)
ISSUE FOR DECISION, NO.6
36. Isthemanufacture ofpitch cokefrom pitches ofcoaltarsandother mineral tarsofthesame
heading asubstantial transformation?
37. Pitch coke(subheading 2708.20) isobtained bythedistillation ofcoaltars,other mineral tars
oroftheirpitches. Itisanewproduct obtained asaresult ofasubstantial transformation.
Theruleshould reflect achange ofsubheading from 2708.10.
Relevant HScodenumber
38. Subheading 2708.20 (Pitch coke)
References
39. Report ofthe3rdSession (Doc. 39.870, Annexes C1andC2)
Report ofthe8thSession (Doc. 41.211, Annexes K1andK2)G/RO/W/23
Page7
NOTES
Rules oforigin relating tounresolved issues submitted bytheTechnical Committee onRules ofOrigin
fordecision bytheCommittee onRules ofOrigin -designated as"Submitted toCRD fordecision";
Agreed rulesoforigin submitted bytheTechnical Committee onRules ofOrigin forendorsement by
theCommittee onRules ofOrigin -designated as"Basket 1";
Rules oforigin retained bytheTechnical Committee onRules ofOrigin forfurther discussion -
designated as"Basket 2"andprinted insmall lettering;
Rules ofOrigin adopted bytheCommittee onRules ofOrigin -designated as"Adopted".G/RO/W/23
Page8CHAPTER 25
[Chapter Residual Rule:
1. When goods ofthisChapter which comprise asingle commercial product andconsist ofamixture ofmaterials ofthesame heading orsubheading,
arenotwholly obtained inasingle country inaccordance withAppendix 1andapplication oftheproduct specific rules ofthisAppendix donotresult in
adetermination ofasingle country oforigin, thecountry oforigin shallbethecountry fromwhich thematerials (taken together) thatpredominate byweight
overallother materials (taken together) obtained from anyother single country. (US)] Basket 2
HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 25 Salt; Sulphur; Earth andstone;
Plastering Materials, Lime and
Cement
25.17 Pebbles, gravel, broken orcrushed
stone, ofakind commonly used for
concrete aggregates, forroad
metalling orforrailway orother
ballast, shingle andflint, whether
ornotheat-treated; macadam of
slag, dross orsimilar industrial
waste, whether ornotincorporating
thematerials cited inthefirstpart
oftheheading; tarred macadam;
granules, chippings andpowder, of
stones ofheading No.25.15 or
25.16, whether ornotheat-treated.Asindicated atthesubheading level.
2517.10 -Pebbles, gravel, broken orcrushed
stone, ofakind commonly used for
concrete aggregates, forroad
metalling orforrailway orother
ballast shingle andflint, whether or
notheattreated Thecountry of
origin ofthegoods shall bethe
country inwhich theminerals ofthis
subheading areobtained intheir
natural orunprocessed stateAdoptedG/RO/W/23
Page9HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2517.20 -Macadam ofslag, dross orsimilar
industrial waste, whether ornot
incorporating thematerials cited in
subheading No.2517.10CTSH Basket 1
2517.30 -Tarred macadam CTSH Adopted
-Granules, chippings andpowder, of
stones ofheading No.25.15 or
25.16, whether ornotheattreated
2517.41 --Ofmarble Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed state.Adopted
2517.49 --Other Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed state.Adopted
25.23 Portland cement, aluminous
cement, slagcement, supersulphate
cement andsimilar hydraulic
cements, whether ornotcoloured or
intheform ofclinkersAsindicated atthesubheading level.
2523.10 -Cement clinkers CTH Adopted
-Portland cement:
2523.21 --White cement, whether ornot
artificially coloured[CTH]
[CTSH]Submitted toCRO fordecision
2523.29 --Other [CTH]
[CTSH]Submitted toCRO fordecision
2523.30 -Aluminous cement [CTH]
[CTSH]Submitted toCRO fordecisionG/RO/W/23
Page10HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2523. 90 -Other hydraulic cements [CTH]
[CTSH]Submitted toCRO fordecision
25.26 Natural steatite, whether ornot
roughly trimmed ormerely cut,by
sawing orotherwise, intoblocks or
slabs ofarectangular (including
square) shape; talc.Asindicated atthesubheading level
2526.10 -Notcrushed, notpowdered Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals ofthis
subheading areobtained intheir natural or
unprocessed stateAdopted
2526.20 -Crushed orpowdered [CTSH]
[The country oforigin ofthegoods shall
bethecountry inwhich theminerals of
thissubheading areobtained intheir
natural orunprocessed state]Submitted toCRO fordecision
25.30 Mineral substances notelsewhere
specified orincluded.Asindicated atthesplitheading level.
ex25.30 (a) -Calcined CTHS Adopted
ex25.30 (b) -Molybdenite concentrates [CTH] Submitted toCRO fordecision
ex25.30 (c) -Other Thecountry oforigin ofthegoods shall be
thecountry inwhich theminerals thissplit
heading areobtained intheir natural or
unprocessed stateAdopted
2530.10
2530.20
2530.40
2530.90-Vermiculite, perlite andchlorites,
unexpanded
-Kieserite, epsomite (natural
magnesium sulphates)
-Natural micaceous ironoxides
-OtherAsindicated atthesplitheading level.G/RO/W/23
Page11CHAPTER 26
Notes
[Chapter Residual Rule:
1.When goods ofthisChapter which comprise asingle commercial product andconsist ofamixture ofmaterials ofthesame heading orsubheading, are
notwholly obtained inasingle country inaccordance withAppendix 1andapplication oftheproduct specific rules ofthisAppendix donotresult ina
determination ofasingle country oforigin, thecountry oforigin shallbethecountry fromwhich thematerials (taken together) thatpredominate byweight
overallother materials (taken together) obtained from anyother single country. (US)] Basket 2
HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 26 Ores, Slag andAsh
26.01 -26.17 Seeindividual headings and
subheadings setoutbelow.Asindicated atthesplitheading level.
ex26.01 (a)to
ex26.17 (a)-Concentrates [CTHS]
Submitted toCRO fordecision
ex26.01 (b)to
ex26.17 (b)-Other Thecountry oforigin ofthegoods shall
bethecountry inwhich themetal oresare
obtained intheir natural orunprocessed
state.Adopted
26.01 Iron oresandconcentrates,including
roasted ironpyritesAsindicated atthesplitheading level.
-Iron oresandconcentrates, other than
roasted ironpyrites:
2601.11 --Non-agglomerated
2601.12 --Agglomerated
2601.20 -Roasted ironpyritesG/RO/W/23
Page12HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
26.02 Manganese oresandconcentrates,
including manganiferous ironores
andconcentrates with amanganese
content of20% ormore, calculated
onthedryweight
26.03 Copper oresandconcentrates
26.04 Nickel oresandconcentrates
26.05 Cobalt oresandconcentrates
26.06 Aluminium oresandconcentrates
26.07 Lead oresandconcentrates
26.08 Zinc oresandconcentrates
26.09 Tinoresandconcentrates
26.10 Chromium oresandconcentrates
26.11 Tungsten oresandconcentrates
26.12 Uranium orthorium oresand
concentrates
2612.10 Uranium oresandconcentrates
2612.20 Thorium oresandconcentrates
26.13 Molybdenum oresandconcentrates
2613.20 -Roasted
2613.90 -Other
26.14 Titanium oresandconcentrates
26.15 Niobium, tantalum, vanadium or
zirconium oresandconcentrates
2615.10 -Zirconium oresandconcentrates
261590 -Other
26.16 Precious metal oresandconcentrates
2616.10 -Silver oresandconcentrates
2616.90 -OtherG/RO/W/23
Page13HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
26.17 Other oresandconcentrates
2617.10 -Antimony oresandconcentrates
2617.90 -OtherG/RO/W/23
Page14
CHAPTER 27
Chapter Notes :
1. Chemical reaction (Basket 1)
"Chemical reaction" isaprocess (including abiochemical process) which results inamolecule
withanewstructure bybreaking intramolecular bonds andbyforming newintramolecular
bonds, orbyaltering thespatial arangement ofatoms inamolecule.
Thefollowing arnotconsidered tobechemical reactions forthepurposes ofthisdefinition:
(a) dissolving inwater orother solvents;
(b) theelimination ofsolvents including solvent water; or
(c) theaddition orelimination ofwater ofcrystallization.
2. Specific processes thatconfer origin (Basket 2)
"Goods ofheadings [27.07, 27.10 through 27.13] ofChapter 27(other thanheading 27i.09)
thathavebeenobtainedasaresultofachemicalreactionorspecifiedphysicalseparationprocess,
including theprocesses listed below aredeemed tobegoods ofthecountry where thereaction
ortheprocess occured:
[(a) vacuum distillation;]
[(b) redistillation byfractionation (including extractive distillation);]
(c) cracking (including catalytic cracking, hydrocracking, thermal cracking, coking,
visbreaking, platforming);
(d) catalytic reforming;
(e) desulphurization (removal ofbound sulphur);
(f) alkylation (including dehydroalkylation, hydroalkylation);
(g) hydrogenation;
(h) extraction bymeans ofselective solvents;
(i) theprocess compising allthefollowing operations: processing withconcentrated
sulphuric acidoleum orsulphuric anhydride, neutralisation withalkaline agents;
(j) polymerisation;
(k) isomerization;
[(l) deparaffinning byaprocess other thanfiltering, inrespect ofproducts falling within
heading 27.10 only;]
[(m) inrespect offueloilsfalling within heading ex27.10, atmospheric distillation, on
condition thatlessthan30%ofthese products distils, byvolume, including losses,
at300oCbytheASTM D86method.]
[(n) inrespect ofheavy oilsother thangasoilsandfueloilsfalling within heading ex27.10
onlytreatment bymeans ofahigh-frequency electrical brush-discharge.]
3. Mixing andblending: (Basket 2)
[Forthepurposes ofheadings 2707 and2710 to2715, thedeliberate andproportionally
controlled mixing orblending ofmaterials, which results intheproduction ofagood having
physical, chemical ortechnical characteristics different fromthoseoftheindividual constituents
isconsidered tobeorigin conferring. (EC)]
[Goods ofheadings 27.07 or27.10 thathavebeenobtained byblendin gtoconform tospecific
predetermined physical specifications, suchasboiling point range, viscosity, solidificationG/RO/W/23
Page15
temperature, research ormotor octane numbers, cetane number, vapour pressure, smoke point,
freeze point, volatility, ordensity, which aredifferent from thespecifications oftheinput
materials. (SG)]
[Goods ofheadings 27.07 or27.10 thathavebeenblended toconform tospecific predetermined
physicalspecifications,suchasboilingpointrange,viscosity,solidificationtemperature,research
ormotor octane number, orcetane number, which aredifferent from thespecifications of
theinputmaterials,aredeemedtobegoodsofthecountrywheretheblendingoccurred,provided
that:
(a) Inthecaseofmotor fuels(other thandiesel fuels), thegood hasaResearch Octane
Number (RON) of6ormore units higher thanthatoftheblending component that
byvolume constitutes thesingle largest blending component obtained from asingle
country; or
(b) Inthecaseofother goods, notmore than70percent byvolume oftheproduct is
composed ofblending components originating fromacountry other thanthecountry
where theblending occurred. (US)]
4. Listofsimple processes which donotconfer origin: (Basket 2)
- cleaning
- decantation
- desalination
- water separation
- filtering
- colouring
- marking
- obtaining asulphur content asaresult ofmixing products withdifferent sulphur contents
- anycombination ofthese operations. (EC)
5. Forthepurposes ofthisChapter, whenever theproduct specific rulesprovided forinthisAnnex
refer tothisNote, thecovered goods shalloriginate inthecountry from which themineral
orgoodwasextracted orotherwise obtained initsnatural orunprocessed state. (US)(Basket 2)
6. Value added rule(Basket 2)
Goods ofheadings 27.07 or27.10 thatarenotwholly theproduct ofonecountry shallbedeemed
tooriginate inthelastcountry where oneofthefollowing occurs:
theCIFvalue ofnon-originating materials imported andusedintheproduction doesnotexceed
75%oftheex-factory price ofthegoods. Themethod ofcalculating foreign content isas
follows :
Forign Content =CIFValue ofNon-originating RawMaterials x100% <75%
Ex-Factory Price
where Ex-Factory Price: =Total materials cost+Direct labour costs+Overheads costs+
Profits. (SG)G/RO/W/23
Page16
Chapter Residual Rules*
7. When goods ofthisChapter which comprise asingle commercial product andconsist ofa
mixture ofmaterials ofthesame heading orsubheading, arenotwholly obtained inasingle
country inaccordance withAppendix 1andapplication oftheproduct specific rules ofthis
Appendix donotresult inadetermination ofthecountry oforigin, thecountry oforigin, shall
bethecountry fromwhich thematerials (taken together) thatpredominate byweight overall
other materials (taken together) obtained from anyother single country.
*Both theChapter Legal Notes andResidual Rules contain “rules oforigin ”.They have been presented inthismanner
because ofgeneral applicability orforother purposes. Inourview, such rules cannot beintegrated conveniently within
this“matrix ”format, yetmustbeprovided insome manner soastoexhaust allthepossible origin considerations. Weinvite
theCommittee toexplore thissituation aspartofitsongoing review oftheorigin rules architecture. (US) (Basket 2)G/RO/W/23
Page17HSCode
NumberDescription ofgoods Origin Criteria Notes Comments
A B C D E
Chapter 27 Mineral fuels, mineral oilsand
products oftheir distillation;
Bituminous substances; Mineral
waxes
27.01 Coal; briquettes, ovoids andsimilar
solid fuels manufactured from coal.Asindicated atthesubheading level.
Coal, whether ornotpulverized, but
notagglomerated:
2701.11 --Anthracite Thecountry oforigin ofthegoods shall be
thecountry inwhich theanthracite ofthis
subheading isobtained initsnatural or
unprocessed state.Adopted
2701.12 --Bituminous coal Thecountry oforigin ofthegoods shall be
thecountry inwhich thebituminous coalof
thissubheading isobtained initsnatural or
unprocessed state.Adopted
2701.19 --Other coal Thecountry oforigin ofthegoods shall be
thecountry inwhich thecoalofthis
subheading isobtained initsnatural or
unprocessed state.Adopted
2701.20 -Briquettes, ovoids andsimilar solid
fuels manufactured from coal[CTSH] Submitted toCRO fordecisionG/RO/W/23
Page18H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
27.07 Oilsandother products ofthedistillation of
hightemperature coaltar;similar products in
which theweight ofthearomatic constituents
exceeds thatofthenon-aromatic constituents.(a)CTH Basket 2
(b)CTH, or
CTSH, provided thechange results from achemical
reaction. (NZ) (JPN) (CAN) (US)Change ofsubheading within theheading by
achemical reaction isdeemed tobea
substantial transformation. Refining
operations and/or oneormore specific
processes such asvacuum distillation,
cracking, reforming, etc., canbeconsidered
assubstantial transformations. (NZ)
Change ofsubheading within thisheading
byachemical reaction isdeemed tobea
substantial transformation. (JPN)
(c)CTH; or
change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)Refining operations and/or oneormore
specific processes such asvacuum
distillation, cracking, reforming, etc., can
beconsidered assubstantial transformations.
Mixing processes canbeconsidered as
substantial transformation iftheyfulfil
certain conditions, relating tothespecific
qualities oftheresulting products andthe
equipment ofplants. (EC)
(d)Goods ofthisheading thatarenotwholly the
product ofonecountry shallbedeemed tooriginate in
thelastcountry where oneofthefollowing occurs:
(i)non-originating materials undergo achange of
classification tosubheadings ofthisheading from any
other subheading ,or
(ii)thegoods havebeenobtained asaresult ofa
chemical reaction ,including refinery processes suchas
cracking (including catalytic cracking, hydrocracking,
thermal cracking, coking andvisbreaking), catalytic
reforming, desulphurisation (removal ofbound sulphur)
alkylation (including dehydroalkylation and
hydroalkylation) andhydrogenation; orSubstantial transformation results from
chemical reaction. Petroleum processes that
cause chemical reactions alter themolecular
structure ofcomplex hydrocarbon
compounds andfrom different compounds.
Thecompounds thatareformed aresuitable
fordifferent usesandapplications compared
totheoriginal compounds. (SG)G/RO/W/23
Page19H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(iii)thegoods havebeenobtained asaresult of
physical separation processes suchasvacuum
distillation orsolvent extraction processes; orSubstantial transformation results from
physical separation processes such as
vacuum distillation andsolvent extraction.
Theprocesses isolate light endhydrocarbons
from complex hydrocarbons. (SG)
(iv)thegoods havebeenobtained byblendin gto
conform tospecific predetermined physical
specifications ,suchasboiling point range, viscosity,
solidification temperature, research ormotor octane
numbers, cetane number, vapour pressure, smoke
point, freeze point, volatility, ordensity, which are
different from thespecifications oftheinput materials;
orBlending toconform tospecific
predetermined specifications issubstantial
transformation. Thefinished products have
acquired different properties and
specifications notpresent intheinputs used.
Toattain specific predetermined
specifications soastorender thefinished
product certain properties such asprotection
from wear andcorrosion, useover wide
temperature range, etc. precise formulation
andblending under acontrolled environment
arerequired. (SG)
(v)theCIFvalue ofnon-originating materials
imported andusedintheproduction doesnotexceed
75%oftheex-factory price ofthegoods. The
method ofcalculating foreign content isasfollows :
FC= CIFvalue ofNORM x100% <75%
Ex-Factory Price
where
FC:foreign content
NORM: non-originating rawmaterials
Ex-Factory Price: =Total materials cost+Direct
labour costs +Overheads costs +Profits. (SG)Duetoon-going technological
developments, itisnotpossible todefine an
exhaustive range ofsubstantial blending
processes. Blending processes involving
proprietary formulation should alsobe
recognized assubstantial. Analternative
value-added rulewillallow forexpression of
substantial transformation thatisintandem
withtechnological changes. Amaximum
level of75% foreign content isdeemed
adequate. (SG)
2707.10
2707.20-Benzole
-ToluoleAsindicated attheheading level.G/RO/W/23
Page20H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2707.30
2707.40
2707.50
2707.60
2707.91
2707.99-Xylole
-Naphthalene
Other aromatic hydrocarbon mixtures ofwhich
65%ormore byvolume (including losses)
distils at250oCbytheASTM D86method
-Phenols
-Other
--Creosote oils
--OtherAsindicated attheheading level.
27.08 Pitch andpitch coke, obtained from
coaltarorfrom other mineral tars.Asindicated atthesubheading level.
2708.10 -Pitch CTH Adopted
2708.20 -Pitch coke [CTSH] Submitted toCRO fordecision
27.10 Petroleum oilsandoilsobtained from
bituminous minerals, other thancrude;
preparations notelsewhere specified or
included, containing byweight 70%ormore
ofpetroleum oilsorofoilsobtained from
bituminous minerals, these oilsbeing thebasic
constituents ofthepreparations.(a)CTH; or
Change within thisheading, provided thechange
results from achemical reaction. (JPN) (CAN)Basket 2
Change within thisheading byachemical reaction is
deemed tobeasubstantial transformation. (JPN)
(b)CTH
(c)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming etc,canbeconsidered substantial
transformations. Mixing processes canbeconsidered as
substantial transformation iftheyfulfil certain
conditions, relating tothespecific qualities ofthe
resulting products andtheequipment ofplants. (EC)
(d)CTH, except from headings 27.10 to27.15. (COL)
(e)CTH ;or
Chang within thisheading, provided thattheother
good ofheading 27.10 undergoes achemical reaction;
and
Goods thathavebeenformulated byblending (NZ)Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming, etc.,canbeconsidered substantial
transformations.
Toreflect substantial transformation resulting from
blending. (NZ)G/RO/W/23
Page21H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(f)Goods ofthisheading thatarenotwholly the
product ofonecountry shallbedeemed tooriginate in
thelastcountry where oneofthefollowing occurs:
i)non-originating materials undergo achange of
classification tothisheading from anyother heading;
or
ii)thegoods havebeenobtained asaresult ofa
chemical reaction, including refinery processes suchas
cracking (including catalytic cracking, hydrocracking,
thermal cracking, coking andvisbreaking), catalytic
reforming, desulphurisation (removal ofbound sulphur)
alkylation (including dehydroalkylation and
hydroalkylation) andhydrogenation; or
iii)thegoods havebeen obtained asaresult of
physical separation processes suchasvacuum
distillation orsolvent extraction processes; orSubstantial transformation results from chemical
reaction .Petroleum processes thatcause chemical
reactions alterthemolecular structure ofcomplex
hydrocarbon compounds andfrom different compounds.
Thecompounds thatareformed aresuitable for
different usesandapplications compared totheoriginal
compounds. (SG)
Substantial transformation results from physical
separation processes suchasvacuum distillation and
solvent extraction. Theprocesses isolate lightend
hydrocarbons from complex hydrocarbons. (SG)
iv)thegoods havebeenobtained byblending to
conform tospecific predetermined physical
specifications, suchasboiling point range, viscosity,
solidification temperature, research ormotor octane
numbers, cetane number, vapour pressure, smoke
point, freeze point, volatility, ordensity, which are
different from thespecifications oftheinput materials;
or
v)theCIFvalue ofnon-originating materials
imported andusedintheproduction doesnotexceed
75%oftheex-factory price ofthegoods. The
method ofcalculating foreign content isasfollows :
FC= CIFvalue ofNORM x100% <75%
Ex-Factory Price
where
FC:foreign content
NORM: non-originating rawmaterials
Ex-Factory Price: =Total materials cost+Direct
labour costs +Overheads costs +Profits. (SG)Blending toconform tospecific predetermined
specifications issubstantial transformation. The
finished products haveacquired different properties and
specifications notpresent intheinputs used. Toattain
specific predetermined specifications soastorender the
finished product certain properties suchasprotection
from wear andcorrosion, useoverwide temperature
range, etc.precise formulation andblending under a
controlled environment arerequired. (SG)
Duetoon-going technological developments, itisnot
possible todefine anexhaustive range ofsubstantial
blending processes. Blending processes involving
proprietary formulation should alsoberecognized as
substantial. Analternative value-added rulewillallow
forexpression ofsubstantial transformation thatisin
tandem withtechnological changes. Amaximum level
of75%foreign content isdeemed adequate. (SG)G/RO/W/23
Page22H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(g)CTH; seeChapter Legal Notes, 3,4,and 5.(US)
27.11 Petroleum gases andother gaseous
hydrocarbons.(a)CTH Basket 2
(b)CTH, except from headings 27.10 to27.15. (COL)
(c)Proposals asindicated atthesubheading level.
(EC)Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming, etc.,canbeconsidered substantial
transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating
tothespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
(d)Goods ofthisheading thatarenotwholly the
product ofonecountry shallbedeemed tooriginate in
thelastcountry where oneofthefollowing occurs:
i)non-originating materials undergo achange of
classification tothesubheadings from anyother
subheading; or
ii)thegoods havebeenobtained asaresult ofa
chemical reaction, including refinery processes suchas
cracking (including catalytic cracking, hydrocracking,
thermal cracking, coking andvisbreaking), catalytic
reforming, desulphurisation (removal ofbound sulphur)
alkylation (including dehydroalkylation and
hydroalkylation); orSubstantial transformation results from chemical
reaction. Petroleum processes thatcause chemical
reactions alterthemolecular structure ofcomplex
hydrocarbon compounds andform different compounds.
(SG)
iii)thegoods havebeenobtained asaresult of
physical separation processes suchasvacuum
distillation orsolvent extraction processes; or
iv) thegoods havebeenobtained from deliberate
separation intoindividual gases. (SG)Substantial transformation results from physical
separation processes suchasvacuum distillation and
solvent extraction. Theprocesses isolate lightend
hydrocarbons from complex hydrocarbons.
Separation ofgases intoindividual components is
substantial transformation. (SG)
- Liquefied :G/RO/W/23
Page23H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2711.11 --Natural gas (a)CTSH, except from subheading 2711.21. (JPN) Natural gas,etc.isliquefied tosimply facilitate its
transportation andstorage byreducing itsvolume
significantly. Finally, itisusedinagaseous form.
Therefore, liquefaction andgasification donotchange
thecharacter andtheuseofthegasandthuscannot be
considered assubstantial transformation. (JPN)
(b)CTSH, except from subheading 2711.21 or
2711.29. (CAN) (PHI)
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)Chapter Legal Note 1(US)
(e)WO(EC)
(f)Proposals asindicated attheheading level.
2711.12 --Propane (a)CTSH, except from subheading 2711.29. (JPN) Change tothissubheading from subheading 2711.29
cannot beconsidered assubstantial transformation
because itresults from asimple operation. (JPN)
(b)CTSH, except from subheading 2711.21 or
2711.29. (CAN) (PHI)
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)CTH; or
change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(e)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(f)Proposals asindicated attheheading level.
2711.13 --Butanes (a)CTSH, except from subheading 2711.29. (JPN) Change tothissubheading from subheading 2711.29
cannot beconsidered assubstantial transformation
because itresults from asimple operation. (JPN)G/RO/W/23
Page24H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(b)CTSH, except from subheading 2711.21 or
2711.29. (CAN) (PHI)
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(e)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(f) Proposals asindicated attheheading level
2711.14 --Ethylene, propylene, butylene andbutadiene (a) CTSH, except from subheading 2711.29. (JPN) Change tothissubheading from subheading 2711.29
cannot beconsidered assubstantial transformation
because itresults from asimple operation. (JPN)
(b)CTSH. except from subheading 2711.21 or
2711.29. (CAN) (PHI)
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(e)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(f) Proposals asindicated attheheading level.
2711.19 --Other (a)CTSH, except from subheading 2711.29. (JPN) Change tothissubheading from subheading 2711.29
cannot beconsidered assubstantial transformation
because itresults from asimple operation. (JPN)G/RO/W/23
Page25H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(b)CTSH, except from subheading 2711.21 or
2711.29. (CAN) (PHI)
(c)CTSH (NZ) Change toliquefied gasfrom agaseous statemaybea
minimal process although themanufacturing process is
verycomplex. (NZ)
(d)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following a
mixingoperation inaccordance withChapter Note 2
(EC)
(e)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(f)Proposals asindicated attheheading level.
-Ingaseous state:
2711.21 --Natural gas (a)WO; or
CTSH, except from subheading 2711.11. (JPN)Change tothissubheading from subheading 2711.11
cannot beconsidered assubstantial transformation,
because itresults from asimple operation. (JPN)
(b)CTSH, except from subheading 2711.11 to
2711.19. (CAN) (PHI)
(c)CTSH (NZ)
(d)Chapter Legal Note 1(US)
(e)WO(EC)
(f) Proposals asindicated attheheading.
2711.29 --Other (a)CTSH, except from subheadings 2711.12 to
2711.21. (JPN)Change tothissubheading from subheading 2711.12 -
2711.21 cannot beconsidered assubstantial
transformation, because itresults from asimple
operation. (JPN)
(b)CTSH, except from subheading 2711.11 to
2711.19. (CAN) (PHI)
(c)CTSH (NZ)G/RO/W/23
Page26H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(d)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(e)CTH
Originates inthecountry inwhich thegood ofthis
subheading wasdeliberately andphysically separated
from amixture petroleum hydrocarbons. (US)
(f)Proposals asindicated attheheading level.
27.12
Petroleum jelly; paraffin wax,
micro-crystalline petroleum wax, slack wax,
ozokerite, lignite wax, peatwax, other
mineral waxes, andsimilar products obtained
bysynthesis orbyother processes, whether or
notcoloured.(a)CTH Basket 2
(b)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)
(c)CTH, except from headings 27.10 to27.15.
(COL)
(d)CTH; seeChapter Legal Note 1(US)
2712.10
2712.20
2712.90-Petroleum jelly
-Paraffin waxcontaining byweight lessthan
0.75% ofoil
-OtherProposals asindicated attheheading level.
27.13 Petroleum coke, petroleum bitumen andother
residues ofpetroleum oilsorofoilsobtained
from bituminous minerals.Proposals asindicated atthesubheading level.
- Petroleum coke:G/RO/W/23
Page27H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
2713.11 --Notcalcined [CTH]
[CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter note1.(EC)]Basket 2
2713.12 --Calcined [CTH]
[CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter note1.(EC)]Basket 2
2713.20 -Petroleum bitumen CTH]
[CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter note1.(EC)]Basket 2
2713.90 Other residues ofpetroleum oilsorofoils
obtained from bituminous minerals[CTH]
[CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter note1.(EC)]Basket 2
27.15 Bituminous mixtures based onnatural
asphalt, onnatural bitumen, onpetroleum
bitumen, onmineral taroronmineral tar
pitch (forexample, bituminous mastics,
cut-backs).(a)CTH, except from subheadings 2713.20, 2714.10
or2714.90 (JPN) (CAN) (PHI)Basket 2
(b)CTH; or
Change within thisheading following arefining
operation ora“specific process ”inaccordance with
Chapter Note 1or,
Change within thisheading following amixing
operation inaccordance withChapter Note 2(EC)Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming, etc.,canbeconsidered substantial
transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating
tothespecific qualities oftheresulting products andthe
equipment ofplants. (EC)G/RO/W/23
Page28H.S. Code
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
(c)CTH (US) Thepreparation ofmixtures containing bitumen, asphalt
andsimilar products constitutes asubstantial
transformation oftheinitial input materials intoother
goods having different physical andcommercial
utilization characteristics. Webelieve thatorigin
should beestablished inthecountry where thetaris
added andmixed. Alternatively, additional subheadings
could becreated under thisheading toprovide a
separate identity forsuchmixtures andthenapply a
change ofsubheading rule.(US)
(d)CTSH (NZ) Refining operations and/or oneormore specific
processes suchasvacuum distillation, cracking,
reforming, etc.,canbeconsidered substantial
transformations.
Mixing processes canbeconsidered assubstantial
transformation. (NZ)G/RO/W/23
Page29
UNRESOLVED ISSUES FOR DECISION BYTHE COMMITTEE ONRULES OFORIGIN
FOR CHAPTERS 41-43
ISSUE FOR DECISION, NO.1
1. Isthede-wooling ofsheep orlamb skins ofsubheadings 4102.21 and4102.29 asubstantial
transformation?
Differing views presented intherelevant Tehnical Committee discussion
OPTION A:
2. Removal ofwoolfromasheep orlambskinwithwoolonisasubstantial transformation process.
Theorigin ruleshould bebased onachange ofsubheading, namely, achange tosubheadings
4102.21 or4102.29 (skin without wool on)from subheading 4102.10 (skin withwool on).
3. De-wooling isacomplicated process. Itinvolved very specialized andlabour-intensive
operations, during which chemical agents areused. De-wooling enhances thequality andthe
value oftheskins. Askinafterde-wooling differs markedly from theinput skinthatbears
fleecy wool.
OPTION B:
4. Removal ofwool fromasheep orlamb skinwithwool onisnotasubstantial transformation
process. Theruleshould bebased onachange ofheading, namely, achange tosubheadings
4102.21 or4102.29 (skin without wool on)from anyother heading.
5. De-wooling isonlyoneofthemany preparatory operations done toprepare theskins for
subsequent tanning orfinishing. De-wooling dosenotchange theessential character ofthe
skin. Itmerely serves toclearupthesurface ofaskinforfurther processing. De-wooling
isbynomeans acomplicated operation although chemical agents areused. Theprocess does
notcallforanyhightechnique.
Relevant HScodenumber
6. Subheadings 4102.21 and4102.29 (Raw skinsofsheep orlambs (fresh, orsalted, dried, limed,
pickled orotherwise preserved, butnottanned, parchment-dressed orfurther prepared), whether
ornotwithwool onorsplit, other thanthose excluded byNote1(c)tothisChapter:Without
wool on).
References
7. Report ofthe3rdSession (Doc. 39.870, Annexes D1andD2)
Report of8thSession (Doc. 41.211, Annexes L1andL2)
Reference document (Doc. 40.811, pages 10-11)
Reference document (Doc. 41.384, page4)
Reference document (Doc. 41.451, page2)
ISSUE FOR DECISION, NO.2
8. Areliming andpickling ofdehaired sheep orlambs skins substantial transformation ?G/RO/W23
Page30
Differing views presented intherelevant Technical Committee discussion
OPTION A:
9. Achange ofsubheading from 4102.29 to4102.21 issufficient toexpress thesubstantial
transformation. Liming andpickling significantly change thecharacteristics ofhides andskins.
However, salting, drying orpreserving offresh hides andskins arenotsubstantial
transformation.
OPTION B:
10. Liming orpickling doesnotchange thecharacteristics ofsheep orlambs skins. Therefore,
achange ofsubheading to4102.21 except from4102.29, orachange ofsubheading to4102.29
except from 4102.21, orachange ofheading ruleshould beadopted.
Relevant HScodenumber
11. Subheadings 4102.21 and4102.29 (Raw skinsofsheep orlambs (fresh, orsalted, dried, limed,
pickled orotherwise preserved, butnottanned, parchment-dressed orfurther prepared), whether
ornotwithwoolonorsplit, other thanthose excluded byNote1(c)tothisChapter:- Without
wool on:-- pickled; other)
References
12. Report ofthe3rdSession (Doc. 39.870, Annexes D1andD2)
Report of8thSession (Doc. 41.211, Annexes L1andL2)
Reference document (Doc. 41.384, page4)
Reference document (Doc. 41.452, page1)
ISSUE FOR DECISION, NO.3
13. Isachange ofheading sufficient toexpress thesubstantial transformation ofthegoods assembled
from parts?
Differing views presented intherelevant Technical Committee discussion
OPTION A:
14. Achange ofheading issufficient toexpress thesubstantial transformation ofarticles assembled
fromparts. Theorigin ruleshould bebased onachange totheheadings concerned (namely,
headings 42.01, 42.04, 42.05 and42.06) from anyother heading.
15. Since theleather goods under examination aremanufactured fromrawmaterials orproducts
including component partsclassified inanyother heading, achange ofheading should bean
adequate expression ofsubstantial transformation ofthegoods. Thisformulation wassimple,
user-friendly andeasytoimplement.
16. However, itisacknowledged thatasimple change ofheading rulewould notbesufficient in
allcircumstances toexpress theorigin ofgoods made fromcomponent partsbecause byvirtue
oftheGeneral RuleofInterpretation 2(a),component partsofagood presented unassembled
ordisassembled maybeclassified inthesame heading astheassembled good. Tosolve this
problem, ageneral ruleshould bestructured.G/RO/W/23
Page31
OPTION B:
17. Achange ofheading isnotsufficient toexpress thesubstantial transformation ofarticles
assembled fromparts. Theorigin ruleshould bebased onachange totheheadings concerned
(namely, headings 42.01, 42.04, 42.05 and42.06) fromanyother heading, provided thegoods
areknittoshape orfullyassembled inonecountry.
18. Tooffset theeffect oftheGeneral RuleofInterpretation 2(a)which classifies aproduct and
itsparts presented asunassembled ordisassembled inthesame heading, thisruleshould be
readinconjunction withthefollowing proposed Chapter Legal Note: "Those ruleswhich refer
toachange ofheading orsubheading shallnotapply tochanges which result solely fromthe
application oftheGeneral RuleofInterpretation 2(a)".
Relevant HScodenumber
19. Headings 42,01 (Saddlery andharness foranyanimal (including traces, leads, kneepads,
muzzles, saddle cloths, saddle bags, dogcoats andthelike), ofanymaterial), 42.04 (Articles
ofleather orofcomposition leather, ofakindusedinmachinery ormechanical appliances
orforother technical uses), 42.05 (Other articles ofleather orofcomposition leather) and
42.06 (Articles ofgut(other thansilk-worm gut), ofgoldbeater 'sskin, ofbladders orof
tendons).
References
20. Report ofthe3rdSession (Doc. 39.870, Annexes D1andD2)
Report ofthe8thSession (Doc. 41.211, Annexes L1andL2)
Reference document (Doc. 39.861, Annex F/12)
_____________
21. TheCommittee onRules ofOrigin isinvited todecide whether theproducts resulting from
theprocesses described below haveundergone theirlastsubstantial transformation.
ISSUE FOR DECISION, NO.4
22. Change tothetanned leather ofheading 41.04, 41.05, 41.06 or41.07 from other products
ofthesame heading.
Differing views presented intherelevant Technical Committee discussion
OPTION A
23. Achange totanned leather from leather provisionally prepared constitutes asubstantial
transformation. Thestarting products mayhavebeenlightly tanned butthetanning effect is
temporary andreversible. Atanned leather ontheother handisaproduct thathasundergone
acomplete course oftanning. Thetanning effect ispermanent. Leather fullytanned andleather
provisionally prepared aretwodifferent products andthechange totanned leather from the
latter isconsidered origin-conferring. Theorigin ruleformulation ofCTHS (change ofsplit
heading) isappropriate fortanned leather putunder splitheadings: ex41.04 (b),ex41.05(b),
ex41.06(b) andex41.07(b).G/RO/W23
Page32
OPTION B
24. Theorigin oftanned leather (of41.04 through 41.07) should betraced backtotheorigin of
theanimals. Achange totanned leather fromrawhides orskins (classified inheading 41.01,
41.02 or41.03) cannot beregarded asasubstantial transformation, nottomention thechange
totanned leather ofaheading among headings 41.04 through 41.07 fromprovisionally prepared
leather ofthesame heading. There isnotmuch difference between theinput products (raw
hides orskins) andresulting product (tanned leather). Theorigin ruleformulation fortanned
leather should bedrafted asfollows:
- fortanned leather ofex41.04(b): CTH, except from heading 41.01
- fortanned leather ofex41.05(b): CTH, except from heading 41.02
- fortanned leather ofex41.06(b): CTH, except from heading 41.03
- fortanned leather ofex41.07(b): CTH, except from heading 41.03
Relevant HScodenumber
25. Heading 41.04: leather ofbovine orequine animals, without hairon,other thanleather of
heading No.41.08 or41.09.
Heading 41.05: sheep orlamb skinleather, without wool on,other thanleather ofheading
No.41.08 or41.09.
Heading 41.06: goatorkidskinleather, without hairon,otherthanleather ofheading No.41.08
or41.09.
Heading41.07:leatherofotheranimals,withouthairon,otherthanleatherofheadingNo.41.08
or41.09.
References
26. Report ofthe3rdSession (Doc. 39.870, Annexes D1andD2)
Report of8thSession (Doc. 41.211, Annexes L1andL2)
Reference document (Doc. 41.251, pages 1to2)
Reference document (Doc. 41.421)
Reference document (Doc. 41.451, pages 1to5)
Reference document (Doc. 41.452)
ISSUE FOR DECISION, NO.5
27. Change totheretanned leather ofheading 41.04, 41.05, 41.06 or41.07 fromother products
ofthesame heading.
Differing views presented intherelevant Technical Committee discussion
OPTION A
28. Retanned leather differs considerably from itsinput products (e.g., leather provisionally
prepared, tanned leather). After being retanned, thequality andproperties ofthefinalproduct
aremuch improved. Hence, achange toretanned leather from theinput products isdeemed
tobeasubstantial transformation. Since boththeretanned leather andtheinput products areG/RO/W/23
Page33
classified inthesame heading, a“CTHS ”isanappropriate origin ruleformulation tocover
retanned leather ofsplitheadings ofex41.04(c), ex41.05(c), ex41.06(c) andex41.07(c).
OPTION B
29. Option Bdiffers from Option Ainthatitdoesnotrecognize retanning oftanned leather to
beorigin-conferring. Theretanning merely reinforced theeffect ofthetanning operation done
tothegoods. Achange toretanned leather fromtanned leather doesnotconstitute asubstantial
transformation. However, asubstantial transformation isdeemed totakeplace iftheinput
product forretanned leather isdrawn from leather provisionally prepared. Theorigin rule
formulations asfollows areconsidered appropriate forretanned leather:
forretanned leather ofex41.04(c): CTHS, exempt from splitheading ex41.04(b)
forretanned leather ofex41.05(c): CTHS, exempt from splitheading ex41.05(b)
forretanned leather ofex41.06(c): CTHS, exempt from splitheading ex41.06(b)
forretanned leather ofex41.07(c): CTHS, exempt from splitheading ex41.07(b)
OPTION C
30. Theorigin ofretanned leather should betraced back tothatoftherawhides andskins
(heading 41.01, 41.02 or41.03, asappropriate). Achange toretanned leather from these
rawhides orskins constitutes asubstantial transformation. However, achange toretanned
leatherofaheadingfromanyotherproducts(e.g.,tannedleather,provisionallypreparedleather)
ofthesame heading doesnotcause anysubstantial transformation totheproducts andisnot
origin-conferring. “CTH”isanappropriate origin ruleformulation forretanned leather of
splitheadings ex41.04(c), ex41.05(c), ex41.06(c) andex41.07(c).
Relevant HScodenumber
31. Seeparagraphs 24.
References
32. Seeparagraph 25.
ISSUE FOR DECISION, NO.6
33. Change tothefinished leather ofheading 41.04, 41.05, 41.06 or41.07 from other products
ofthesame heading.
Differing views presented intherelevant Technical Committee discussion
34. "After tanning, ...theleather maythenbefurther dressed orfinished bydyeing, graining,
orstamping toimitate skins ofother kinds, sizing, polishing, grinding (orbuffing) ...togive
suede orvelveted finish, waxing, blacking, smoothing (glazing), satinfinishing, printing, etc."
(HSExplanatory Note, page650)G/RO/W23
Page34
35. TheTechnical Committee hascome upwith5possible ways toarticulate theorigin rulefor
finished leather.
OPTION A
36. Theorigin ruleformulation should bebased ona“CTH”.Thismeans thattheinput products
forfinished leather (ofheadings 41.04 to41.07) needtobetraced backtotherelated rawhides
orskins (ofheadings 41.01 to41.03). Achange tofinished leather ofheadings 41.04 to41.07
fromanyother products (i.e.tanned leather, leather provisionally prepared) classified inthe
same heading doesnotconstitute asubstantial transformation.
OPTION B
37. Theproduction offinished leather (ofheadings 41.04 to41.07) from tanned, retanned or
provisionally prepared leather entails sufficient characteristic change totheresulting products.
Itistherefore origin-conferring. The“CTHS ”should beanappropriate origin ruleformulation
forthefinished leather ofsplitheadings ex41.04(d), ex41.05(d), ex41.06(d) andex41.07(d).
OPTION C
38. Thechange tofinished leather (ofheadings 41.04 to41.07) from tanned orprovisionally
prepared leather ofthesameheading isconsidered substantial andorigin-conferring. However,
achange tofinished leather from retanned leather doesnotinvolve much modification tothe
input product. Substantial transformation therefore isnotdeemed tohavetaken place. The
origin rules forthefinished leather ofheading 41.04 to41.07 should beformulated as:
- forfinished leather ofex41.04(d): CTH, except from heading 41.04(c)
- forfinished leather ofex41.05(d): CTH, except from heading 41.05(c)
- forfinished leather ofex41.06(d): CTH, except from heading 41.06(c)
- forfinished leather ofex41.07(d): CTH, except from heading 41.07(c)
OPTION D
39. Theorigin canbeconferred tofinished leather (ofheadings 41.04 to41.07) manufactured from
theprovisionally prepared leather ofthesame heading concerned. However, theproduction
offinished leather from tanned orretanned doesnotinvolve much characteristic change to
theinput products. Accordingly, thefollowing origin ruleformulations areconsidered
appropriate:
- forfinished leather ofex41.04(d): CTH, except from heading ex41.04(b) or
41.04(c)
- forfinished leather ofex41.05(d): CTH, except from heading ex41.05(b) or
41.05(c)
- forfinished leather ofex41.06(d): CTH, except from heading ex41.06(b) or
41.06(c)
- forfinished leather ofex41.07(d): CTH, except from heading ex41.07(b) or
41.07(c)G/RO/W/23
Page35
OPTION E
40. Some finishing processes assetoutinparagraph 15maybetoominimal toaffect theleather
while others render significant changes totheperformance oftheresulting leather. Torecognize
thesubstantial transformation brought about bycertain finishing processes totheleather, the
origin ruleforproducts under ex41.04(d), ex41.05(d), ex41.06(d) andex41.07(d) should be
formulated along thelineof“change within splitheading ”asfollows:
- forfinished leather ofex41.04(d): Change within splitheading ex41.04(d)
- forfinished leather ofex41.05(d): Change within splitheading ex41.05(d)
- forfinished leather ofex41.06(d): Change within splitheading ex41.06(d)
- forfinished leather ofex41.07(d): Change within splitheading ex41.07(d)
Relevant HScodenumber
41. Seeparagraphs 24.
References
42. Seeparagraph 25.
ISSUE FOR DECISION, NO.7
43. Change totheparchment dressed (whether ornotfurther prepared) leather ofheading 41.04,
41.05, 41.06 or41.07 from other products ofthesame heading.
Differing views presented intherelevant Technical Committee discussion
44. "Parchment-dressed leather isprepared fromrawhides orskins, notbyaprocess oftanning,
butbytreating therawhides andskins toensure theirpreservation. These aresoftened,
dehaired, defleshed, washed andthenstretched onaframe, coated withapaste containing
whiting andsodaorslaked lime, shaved toreduce them tothedesired thickness andground
withpumice. Finally, theymaybedressed withgelatin andstarch." (HSExplanatory Note,
page650)
OPTION A
45. Theparchment dressed leather isremarkably different from itsinput material ofrawhides
orskinsinallrespects. Achange toparchment dressed leather fromrawhides orskinstherefore
constitutes asubstantial transformation. The“CTH”formulation should beadopted asthe
origin ruleforparchment dressed leather ofsplitheadings ex41.04 (e),ex41.05(e), ex41.06(e)
andex41.07(e)
OPTION B
46. Thechange toparchment dressed leather ofheading 41.04, 41.05, 41.06 or41.07 fromother
products (i.e.provisionally prepared leather) ofthesame heading isconsidered asubstantial
transformation because there ismuch difference between theinput andtheresulting products.
Theorigin ruleformulation fortheparchment dressed leather under splitheadings ex41.04(e),
ex41.05(e), ex41.06(e) andex41.07(e) should bebased on“CTHS ”,namely, achange to
these splits from anyother splitofthesame heading confers origin.G/RO/W23
Page36
OPTION C
47. Achange toparchment dressed leather from provisionally prepared ortanned leather is
considered tobeasubstantial transformation andconfers origin. However, achange to
parchment dressed leather from retanned orfinished leather should notbesotreated.
Consequently, theorigin ruleforparchment dressed leather should beformulated asfollows:
- forparchment dressed leather ofex41.04(e): CTHS,exceptfromheadingex41.04(c)
or41.04(d)
- forparchment dressed leather ofex41.05(e): CTHS,exceptfromheadingex41.05(c)
or41.05(d)
- forparchment dressed leather ofex41.06(e): CTHS,exceptfromheadingex41.06(c)
or41.06(d)
- forparchment dressed leather ofex41.07(e): CTHS,exceptfromheadingex41.07(c)
or41.07(d)
Relevant HScodenumber
48. Seeparagraphs 24.
References
49. Seeparagraph 25.G/RO/W/23
Page37CHAPTER 41
Notes:
HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 41 Raw hides andskins (other than
furskins) andleather
41.02 Raw skins ofsheep orlambs (fresh, or
salted, dried, limed, pickled or
otherwise preserved, butnottanned,
parchment-dressed orfurther
prepared), whether ornotwith wool on
orsplit, other than those excluded by
Note 1(c)tothisChapter.Asindicated atthesubheading level.
4102.10 -With wool on CTH Adopted
-Without wool on
4102.21 --Pickled [CTH]
[CTSH]Submitted toCRO fordecision
[CTSH, except from subheading
4102.29]
4102.29 --Other [CTH]
[CTSH]Submitted toCRO fordecision
[CTSH, except from subheading
4102.21]
41.04 Leather ofbovine orequine animals,
without hairon,other than leather of
heading No.41.08 or41.09Asindicated atthesplitheading level.
4104.10 - Whole bovine skinleather, ofa
unitsurface areanotexceeding
28square feet(2.6m2)
- Other bovine leather andequine
leather, tanned orretanned but
notfurther prepared, whether or
nosplit:G/RO/W/23
Page38HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
4104.21 -- Bovine leather, vegetable
pre-tannedAsindicated atthesplitheading level.
4104.22 -- Bovine leather, otherwise
pre-tanned
410429
4104.31
4104.39-- Other
- Other bovine leather andequine
leather, parchment-dressed or
prepared after tanning:
-- Fullgrains andfullgrains splits
-- OtherG/RO/W/23
Page39HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex41.04(a) -Provisionnally prepared CTH, except from heading 41.01 Basket 1
ex41.04(b) -Tanned [CTHS]
[CTH, except from heading 41.01]Forpurposes ofthisAppendix,
tanned leather includes chrome
tanned (wetblue) orvegetable
tanned leather.Submitted toCRO
fordecision
ex41.04(c) -Retanned [CTH]
[CTHS]
[CTH, except from splitheading
ex41.04(b)]Submitted toCRO
fordecision
ex41.04(d) -Finished [CTH]
[CTHS]
[CTHS, except from splitheading
ex41.04(c)]
[CTHS, except from splitheading
ex41.04(b) orex41.04(c)]
[Change within splitheading
ex41.04(d)]Submitted toCRO
fordecision
ex41.04(e) -Parchment dressed, whether ornot
further prepared[CTH]
[CTHS]
[CTHS, except from splitheading
ex41.04(c) orex41.04(d)]Submitted toCRO
fordecisionG/RO/W/23
Page40HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
41.05 Sheep orlamb skinleather, without
wool on,other than leather ofheading
No.41.08 or41.09Asindicated atthesplitheading level.
Tanned orretanned butnotfurther
prepared, whether ornotsplit:
4105.11 --Vegetable pre-tanned
4105.12 --Otherwise pre-tanned
4105.19 --Other
4105.20 -Parchment-dressed orprepared after
tanningG/RO/W/23
Page41HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex41.05(a) -Provisionnally prepared CTH, except from heading 41.02 Forpurposes ofthisAppendix,
tanned leather includes chrome
tanned (wetblue) orvegetable
tanned leather.Basket 1
ex41.05(b) -Tanned [CTHS]
[CTH, except from heading 41.02]Submitted toCRO
fordecision
ex41.05(c) -Retanned [CTH]
[CTHS]
[CTH, except from splitheading
ex41.05(b)]Submitted toCRO
fordecision
ex41.05(d) -Finished [CTH]
[CTHS]
[CTHS, except from splitheading
ex41.05(c)]
[CTHS, except from splitheading
ex41.05(b) orex41.05(c)]
[Change within splitheading ex41.05(d)]Submitted toCRO
fordecision
ex41.05(e) -Parchment dressed, whether ornot
further prepared[CTH]
[CTHS]
[CTHS, except from splitheading
ex41.05(c) orex41.05(d)]Submitted toCRO
fordecisionG/RO/W/23
Page42HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
41.06 Goat orkidskinleather, without hair
on,other than leather ofheading
No.41.08 or41.09Asindicated atthesplitheading level.
4106.11 Tanned orretanned butnotfurther
prepared, whether ornotsplit:
4106.12 --Vegetable pre-tanned
4106.19 --Otherwise pre-tanned
4106.20 --OtherG/RO/W/23
Page43HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex41.06(a) -Provisionnally prepared CTH, except from heading 41.03 Forpurposes ofthisAppendix,
tanned leather includes chrome
tanned (wetblue) orvegetable
tanned leather.Basket 1
ex41.06(b) -Tanned [CTHS]
[CTH, except from heading 41.03]Submitted toCRO
fordecision
ex41.06(c) -Retanned [CTH]
[CTHS]
[CTH, except from splitheading
ex41.06(b)]Submitted toCRO
fordecision
ex41.06(d) -Finished [CTH]
[CTHS]
[CTHS, except from splitheading
ex41.06(c)]
[CTHS, except from splitheading
ex41.06(b) orex41.06(c)]
[Change within splitheading ex41.06(d)]Submitted toCRO
fordecision
ex41.06(e) -Parchment dressed, whether ornot
further prepared[CTH]
[CTHS]
[CTHS, except from splitheading
ex41.06(c) orex41.06(d)]Submitted toCRO
fordecisionG/RO/W/23
Page44HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
41-07 Leather ofother animals, without hair
on,other than leather ofheading
No.41.08 or41.09Asindicated atthesplitheading level.
4107.10 -Ofswine
-Ofreptiles:
4107.21 --Vegetables pre-tanned
4107.29 --Other
4107.90 -Ofother animalsG/RO/W/23
Page45HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex41.07(a) -Provisionnally prepared CTH, except from heading 41.03 Forpurposes ofthisAppendix,
tanned leather includes chrome
tanned (wetblue) orvegetable
tanned leather.Basket 1
ex41.07(b) -Tanned [CTHS]
[CTH, except from heading 41.03]Submitted toCRO
fordecision
ex41.07(c) -Retanned [CTH]
[CTHS]
[CTH, except from splitheading
ex41.07(b)]Submitted toCRO
fordecision
ex41.07(d) -Finished [CTH]
[CTHS]
[CTHS, except from splitheading
ex41.07(c)]
[CTHS, except from splitheading
ex41.07(b) orex41.07(c)]
[Change within splitheading ex41.07(d)]Submitted toCRO
fordecision
ex41.07(e) -Parchment dressed, whether ornot
further prepared[CTH]
[CTHS]
[CTHS, except from splitheading
ex41.07(c) orex41.07(d)]Submitted toCRO
fordecisionG/RO/W/23
Page46
CHAPTER 42
Notes :
[1.Forthepurposes ofdetermining thecountry oforigin forgoods falling within thischapter thatarenotwholly
obtained inonecountry, thefollowing individual processes, considered singly, shall notaffect theorigin ofthe
goods concerned, whether ornotsuch processes result inchanges ofclassification:
(a) Working orfinishing oneormore edges byhemming, rolling, whipping orsimilar means orbyknotting
fringe;
(b) Cutting fabrics, yarns orother materials; orseparating goods produced inthefinished statebycutting
along dividing threads orlines;
(c) Assembling orjoining goods bysewing, stitching orother means forconvenience ofshipment orother
temporary purposes;
(d) Finishing existing goods withfasteners, buttonholes, “patch ”pockets, footstraps, collars, cuffs, labels,
trimmings orornamental elements (including nutnotlimited tolace, nonfunctional stitching, beads,
badges, tassels, pompons, fringe, appliqués orfeathers) orthelike; or
(e) Putting upgoods forretail saleorinsetsorensembles. (US)] (Basket 2)
[2. Forthepurposes ofthischapter, those rules which refer toachange ofheading orsubheading shall
notapply tochanges which result from disassembly. (US)] (Basket 2)
[3. Those rules which refer toachange ofheading orsubheading shall notapply tochanges which result
solely from theapplication ofGeneral Rule ofInterpretation 2(a)withrespect tocollection ofparts thatare
presented asunassembled articles ofanother heading orsubheading. (US)] (Basket 2)
[4. Theterm“complete making-up ”means thatalltheoperations following cutting havetobeperformed.
However, making-up shall notnecessarily beconsidered asincomplete where oneormore finishing
operations have notbeen carried out.
Thefollowing isalistofexamples offinishing operations:
- fitting ofbuttons and/or other types offastenings;
- making ofbutton-holes;
- finishing offtheendsoftrouser legsandsleeves orthebottom hemming ofskirts anddresses;
- fitting oftrimmings andaccessories such aspockets, labels, badges, etc.;
- ironing andother preparations ofgarments forsale“ready made”.(EC)] (Basket 2)G/RO/W/23
Page47HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 42 Articles ofleather; saddlery and
harness; travel goods, handbags and
similar containers; articles ofanimal
gut(other than silk-worm gut).
42.01 Saddlery andharness foranyanimal
(including traces, leads, knees pads,
muzzles, saddle clothes, saddle bags,
dogcoats andthelike), ofany
material.[CTH]
[CTH, provided thegoods areknittoshape
orfully assembled inonecountry]Submitted toCRO fordecision
42.02 Trunks, suit-cases, vanity-cases, executive-cases,
brief-cases, school satchels, spectacle cases,
binocular cases, camera cases, musical
instrument cases, guncases, holsters andsimilar
containers; travelling-bags, toilet bags,
rucksacks, handbags, shopping-bags, wallets,
purses, map-cases, cigarette- cases,
tobacco-pouches, toolbags, sports bags,
bottle-cases, jewellery boxes, powder-boxes,
cutlery cases andsimilar containers, ofleather or
ofcomposition leather, ofsheeting ofplastics, of
textile materials, ofvulcanised fibre orof
paperboard, orwholly ormainly covered with
suchmaterials orwithpaper.[CTH]
[CTH, provided thegoods areknittoshape orfully
assembled inonecountry;
Additional Rule:
Goods ofthisheading which were wholly obtained
from acollection ofparts, which collection was
classifiable asanunassembled good byvirtue of
General Interpretative Rule2(a), aredeemed tohave
originated inthecountry where thegoods were wholly
assembled.]Basket 2.Final decision willbemade together with
therules fortextile articles ofother Chapters.
Trunks, suit-cases, vanity-cases, executive -cases,
brief-cases, school satchels andsimilar containers:Asindicated attheheading level
4202.11 --With outer surface ofleather, ofcomposition
leather orofpatent leather
4202.12 With outer surface ofplastics oroftextile materials Asindicated attheheading level
4202.19 --Other
-Handbags, whether ornotwithshoulder strap,
including those without handle:
4202.21 --With outer surface ofleather, ofcomposition
leather orofpatent leather
4202.22 --With outer surface ofplastic sheeting oroftextile
materials
4202.29 --OtherG/RO/W/23
Page48HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
-Articles ofakindnormally carried inthepocket
orinthehandbag;
4202.31 --With outer surface ofleather, ofcomposition
leather orofpatent leather
4203.32 --With outer surface ofplastic sheeting oroftextile
materials
4202.39 --Other
-Other
4202.91 --With outer surface ofleather, ofcomposition
leather orofpatent leather
4202.92 --With outer surface ofplastic sheeting oroftextile
materials
4202.99 --Other
42.03 Articles ofapparel andclothing accessories, of
leather orofcomposition leather.[CTH]
[CTH, provided thegoods areknittoshape orfully
assembled inonecountry;
Additional Rule:
Goods ofthisheading which were wholly obtained
from acollection ofparts, which collection was
classifiable asanunassembled good byvirtue of
General Interpretative Rule2(a), aredeemed tohave
originated inthecountry where thegoods were wholly
assembled.]
Another option indicated atthesplitheading levelBasket 2.Final decision willbemade together with
therules fortextile articles ofother Chapters.
ex42.03(a) Articles ofapparel, ofleather orofcomposition
leather[Complete making-up] Basket 2.Final decision willbemade together with
therules fortextile articles ofother Chapters.
ex42.03(b) Other [CTH]
4203.10 -Articles ofapparel Asindicated attheheading orsplitheading level
-Gloves, mitten andmitts:
4203.21 --Specially designed foruseinsports
4203.29 --Other
4203.30 -Belts andbandoliers
4203.40 -Other clothing accessories Asindicated attheheading orsplitheading levelG/RO/W/23
Page49HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
42.04 Articles ofleather orofcomposition
leather, ofakind used inmachinery or
mechanical appliances orforother
technical uses.[CTH]
[CTH, provided thegoods areknittoshape
orfully assembled inonecountry]Submitted toCRO fordecision
42.05 Other articles ofleather orof
composition leather.[CTH]
[CTH, provided thegoods areknittoshape
orfully assembled inonecountry]Submitted toCRO fordecision
42.06 Articles ofgut(other than silk-worm
gut), ofgoldbeater 'sskin, ofbladders
oroftendons.[CTH]
[CTH, provided thegoods areknittoshape
orfully assembled inonecountry]Submitted toCRO fordecision
4206.10 -Catgut Asindicated attheheading level
4206.90 -OtherG/RO/W/23
Page50
CHAPTER 43
Notes:
[1. Forthepurposes ofdetermining thecountry oforigin forgoods falling within thischapter thatarenot
wholly obtained inonecountry, thefollowing individual processes, considered singly, shallnotaffect theorigin
ofthegoods concerned, whether ornotsuch processes result inchanges ofclassification:
(a) Working orfinishing oneormore edges byhemming, rolling, whipping orsimilar means orbyknotting
fringe;
(b) Cutting fabrics, yarns orother materials; orseparating goods produced inthefinished statebycutting
along dividing threads orlines;
(c) Assembling orjoining goods bysewing, stitching orother means forconvenience ofshipment orother
temporary purposes;
(d) Finishing existing goods withfasteners, buttonholes, “patch ”pockets, footstraps, collars, cuffs, labels,
trimmings orornamental elements (including nutnotlimited tolace, nonfunctional stitching, beads,
badges, tassels, pompons, fringe, appliqués orfeathers) orthelike; or
(e) Putting upgoods forretail saleorinsetsorensembles. (US)] (Basket 2)
[2. Forthepurposes ofheadings 43.03 and43.04, those rules which refer toachange ofheading or
subheading shall notapply tochanges which result from disassembly. (US)] (Basket 2)
[3. Those rules which refer toachange ofheading orsubheading shall notapply tochanges which result
solely from theapplication ofGeneral Rule ofInterpretation 2(a)withrespect tocollection ofparts thatare
presented asunassembled articles ofanother heading orsubheading. (US)] (Basket 2)
[4. Theterm“complete making-up ”means thatalltheoperations following cutting havetobeperformed.
However, making-up shall notnecessarily beconsidered asincomplete where oneormore finishing
operations have notbeen carried out.
Thefollowing isalistofexamples offinishing operations:
- fitting ofbuttons and/or other types offastenings;
- making ofbutton-holes;
- finishing offtheendsoftrouser legsandsleeves orthebottom hemming ofskirts anddresses;
- fitting oftrimmings andaccessories such aspockets, labels, badges, etc.;
- ironing andother preparations ofgarments forsale“ready made”.(EC)] (Basket 2)G/RO/W/23
Page51HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
Chapter 43 Furskins andartificial fur;
manufactures thereof
43.03 Articles ofapparel, clothing accessories andother
articles offurskin.[CTH]
[CTH, provide thegoods arefullyassembled inone
country;
Additional Rule:
Goods ofthisheading which were wholly obtained
from acollection ofparts, which collection was
classifiable asanunassembled good byvirtue of
General Interpretative Rule2(a), aredeemed tohave
originated inthecountry where thegoods were
wholly assembled.]
Another option indicated atthesplitheading levelBasket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.03 (a) Articles ofapparel, offurskin [Complete making-up] Basket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.03 (b) Other [CTH]
4303.10 -Articles ofapparel andclothing accessories Asindicated attheheading orsplitheading level
4303.90 -Other
43.04 Artificial furandarticles thereof [CTH]
Other options indicated atthesplitheading levelBasket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.04 (a) Articles ofartificial fur,apparel [CTH, provided thegoods arefullyassembled inone
country;
Additional Rule:
Goods ofthisheading which were wholly obtained
from acollection ofparts, which collection was
classifiable asanunassembled good byvirtue of
General Interpretative Rule2(a), aredeemed tohave
originated inthecountry where thegoods were
wholly assembled.]
[CTHS]
[Complete making-up]Basket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.G/RO/W/23
Page52HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex43.04 (b) Articles ofartificial fur,other [CTH]
[CTH, provided thegoods arefullyassembled inone
country]Basket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.
ex43.04 (c) Other [CTHS]
CTHBasket 2.Final decision willbemade together withthe
rules fortextile articles ofother Chapters.G/RO/W/23
Page53
UNRESOLVED ISSUES SUBMITTED FOR DECISION BYTHE COMMITTEE
CHAPTERS 91-WATCHES AND CLOCKS AND PARTS THEREOF
ISSUE FOR DECISION NO.1:
1. Isthecountry oforigin ofafinished watch orclock thecountry offinalassembly orthecountry
oforigin ofthemovement usedinitsproduction?
Differing views presented intherelevant Technical Committee discussions
OPTION A:aruleoforigin based ontheorigin ofthemovement forthefollowing reasons:
2. Theessence ofawatch, orclock, isadevice which indicates thetimeormeasures theintervals
oftime(seeexplanatory notes under heading 91.02 (and91.03)). Amovement isdefined in
theHSchapter notes asadevice capable ofdetermining intervals oftime(seeNote 3to
Chapter 91).There isnodifference intheessential character between awatch andamovement
anditisthemovement which imparts theessential character ofawatch.
Inthemanufacture ofawatch orclock, theassembly ofthemovement isconsidered thelast
substantial transformation because atthestage ofcompletion ofthemovement, theessential
character ofthewatch -time-telling -isalready fixed.
Thefinalassembly frommovement towatch doesnotsubstantially change theessential character
oftime-telling andcannot amount tosubstantial transformation.
Because theessential character andquality ofawatch oraclock isdetermined bythemovement,
theorigin ofthemovement ismost important from acommercial point ofview.
OPTION B:aruleoforigin based ontheassembly ofthewatch orclock, forthefollowing reasons:
3. Thestructure oftheHSreflects thatmovements andwatches areessentially different commercial
goods.
Various finished goods canbeobtained from thesame movement byfinalassembly.
While themovement isimportant, timekeeping isaminimum characteristic. Themovement
doesnotrepresent timeandisinvisible afterassembly.
Itisthechange from components toawatch which isthelastsubstantial transformation in
watch manufacture. Theaccuracy, durability andlifespanofawatch aredetermined and
guaranteed bythefinalassembly.
Some Members areoftheopinion thattesting andadjustment, which constitute anessential
partofassembly, arealsoofparticular importance because theydetermine theabove-mentioned
quality ofawatch.
Relevant HScodenumbers anddescriptions
4. 91.01 - Wrist-watches,pocket-watchesandotherwatches,includingstop-watches,with
caseofprecious metal orofmetal cladwithprecious metal;
91.02 - Wrist-watches,pocket-watchesandotherwatches,includingstop-watches,other
thanthose ofheading 91.01;G/RO/W/23
Page54
91.03 - Clocks withwatch movements, excluding clocks ofheading 91.04;
91.04 - Instrument panel clocks andclocks ofasimilar typeforvehicles, aircraft,
spacecraft orvessels;
91.05 - Other clocks;
91.06 - Time ofdayrecording apparatus andapparatus formeasuring, recording or
otherwise indicating intervals oftime, withclock orwatch movement orwith
synchronous motor (forexample, time-registers, time-recorders);
91.07 - Time switches withclock orwatch movement orwithsynchronous motor.
ISSUE FOR DECISION NO.2
5. What istheappropriate description inex-91.10(b) ofcomplete movements, partly assembled
andofincomplete movements?
Differing views presented intherelevant Technical Committee discussions
OPTION A:
6. -movements ofex-91.10(b) must contain atleasttwoofthekeycomponents onacommon
support. Theproponents consider thatthespecification ofatleasttwoofthese components
issufficient totakeupanyoneofthethreetypes ofmovement: mechanical; analog electronic;
ordigital electronic.
OPTION B:
7. -allofthekeycomponents, asappropriate, must bepresent. Thisformulation isintended
toprovide amore clear delineation between thetypes ofmovements andcomponents.
Relevant HScodenumber anddescription
8. 91.10 - Complete watch orclock movements, unassembled orpartly assembled
(movement sets); incomplete watch orclock movements, assembled; rough
watch orclock movements.
ISSUE FOR DECISION NO.3
9. Arechanges tocomplete andassembled movements ofheadings 91.08 or91.09 from partly
assembled complete movements orincomplete movements ofex-91.10(b), orfrom other
movements ofex-91.10(c), substantial transformations?
Differing views presented intherelevant Technical Committee discussions
OPTION A:
10. -change totheseheadings fromanyother headings, thatis,from91.10 or91.14, isconsidered
substantial transformation byreason oftheassembly operations involved.
OPTION B:
11. -change totheseheadings fromanyotherheadings, except thatchange fromex-91.10(b) should
beexcluded because suchgoods havealready acquired thecharacter ofmovements prior to
finalassembly andfinishing.G/RO/W/23
Page55
OPTION C:
12. -changes from ex-91.10(c) should beexcluded aswellaschanges from ex-91.10(b) because
goods ofex-91.10(c) havealready undergone some amount ofassembly which means thata
change tocomplete andassembled goods isnotsubstantial transformation.
OPTION D:
13. -change fromanyotherheading, provided thatallofthefollowing components, asappropriate,
areassembled onacommon support: timereference device, device forconverting thetimereference
forthepurpose ofdisplay, timesetting mechanism oropto-electronic display.
Relevant HScodenumbers anddescriptions
14. 91.08 - Watch movements, complete andassembled;
91.09 - Clock movements, complete andassembled.
ISSUE FOR DECISION NO.4
15. Arechanges tofinished watch orclock cases fromcaseparts, ortowatch orclock cases from
caseblanks, substantial transformation?
Differing views presented intherelevant Technical Committee discussions
OPTION A:
16. -Change oftariff heading. Nochanges from subheadings forparts, orwithin subheadings
fromblanks tofinished goods, could reflect substantial transformation intheseheadings because
thewatch andclock cases areproduced fromasmall number ofparts, andusually oneprincipal
part, bybasic operations.
OPTION B:
17. -Change oftariffsubheading. Changes frompartstofinished goods ofthese headings reflects
substantial transformation.
OPTION C:
18. -Change oftariff heading orchange within subheadings bythefinishing ofblanks. Changes
atthesubheading levelfromgoods classified aspartstofinished goods should notbesubstantial
transformation; butchanges within subheadings bytheworking, machining andpolishing of
blanks should beorigin-conferring.
Relevant HScodenumbers anddescriptions
19. 91.11 - Watch cases andparts thereof;
91.12 - Clock cases andcases ofasimilar typeforgoods ofthisChapter, andparts
thereof.G/RO/W/23
Page56
ISSUE FOR DECISION NO.5
20. Ischange tofinished straps, bands orbracelets frompartsclassified within 91.13, orchange
from blanks classified within 91.13, substantial transformation? Thisissue applies alsoto
theheading 91.14, butonlytothequestion ofblanks (mutatis mutandis), i.e.option Aand
B.
Differing views presented intherelevant Technical Committee discussions
OPTION A:
21. -Change oftariffheading, indicating thatnochanges frompartsorfromblanks areconsidered
substantial transformation.
OPTION B:
22. -Change oftariffheading orchange fromblanks tofinished goods within thesamesubheadings
byworking, machining orpolishing.
OPTION C:
23. -Change oftariff heading orchange within subheadings from parts tofinished goods.
Relevant HScodenumber anddescription
24. 91.13 - Watch straps, watch bands andwatch bracelets, andparts thereof
91.14 - Other clock orwatch parts
ISSUE FOR DECISION NO.6
25. Isthemanufacture ofunassembled watch straps from fabric substantial transformation?
Differing views presented intherelevant Technical Committee discussions
OPTION A:
26. -theorigin ofunassembled straps andbands ofthissubheading should bebased onthecountry
oforigin ofthefabric; change tounassembled straps ofthissubheading from fabric isnot
substantial transformation asitrequires operations suchascutting, hemming andlooping.
OPTION B:
27. -change tounassembled goods ofthissubheading fromanyotherheading issufficient toexpress
substantial transformation.
Relevant HScodenumber anddescription
28. 9113.90 - OtherG/RO/W/23
Page57
References toTechnical Committee documents
29. Report of4thSession (Doc. 40.245) Annex H/1.paragraphs 1-14
Report of5thSession (Doc. 40.510) Annex E/1
Draft Report of8thSession (Doc. 41.511) Annexes IJ/1andIJ/2
Secretariat ’sIssues ListforBasket 2(Doc. 41.221)
Working Document: Second Examination (Doc. 41.225)
Report oftheTokyo Intersessional Group (Doc. 41.209)
Reference Document 41.236
Reference Document 41.218
Reference Document 41.208
Reference Document 41.416
Reference Document 41.433
Reference Document 41.507G/RO/W/23
Page58Chapter 91
Clocks andwatches andparts thereof
Note:
Disassembly operations, including those which result inachange oftariff classification, shallnotbeconsidered origin conferring.
HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
91.01 Wrist-watches, pocket-watches and
other watches, including stop-watches,
with caseofprecious metal orofmetal
cladwith precious metal.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.02 Wrist-watches, pocket-watches and
other watches, including stop-watches,
other than those ofheading No.91.01.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.03 Clocks with watch movements,
excluding clocks ofheading No.91.04.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.04 Instrument panel clocks andclocks ofa
similar type forvehicles aircraft,
spacecraft orvessels.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.05 Other clocks. [CTH ]
[CTH, except from heading 91.08 or
91.09Submitted totheCRO fordecision
91.06 Time ofdayrecording apparatus and
apparatus formeasuring, recording or
otherwise indicating intervals oftime,
with clock orwatch movement orwith
synchronous motor (forexample,
time-registers, time-recorders).[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecisionG/RO/W/23
Page59HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
91.07 Time switches with clock orwatch
movement orwith synchronous motor.[CTH ]
[CTH, except from heading 91.08 or
91.09 ]Submitted totheCRO fordecision
91.08 Watch movements, complete and
assembled.[CTH ]
[CTH, except from ex91.10 (b)]
[CTH, except from ex91.10 (b)or
ex91.10 (c)]
[CTH, provided thatallofthe
following components, asappropriate,
areassembled onacommon support:
timereference device, device for
converting thetimereference forthe
purpose ofdisplay, time setting
mechanism oropto-electronic display.]Submitted totheCRO fordecision
91.09 Clock movements, complete and
assembled.[CTH ]
[CTH, except from ex91.10 (b)]
[CTH, except from ex91.10 (b)or
ex91.10 (c)]
[CTH, provided thatallofthe
following components, asappropriate,
areassembled onacommon support:
timereference device, device for
converting thetimereference forthe
purpose ofdisplay, time setting
mechanism oropto-electronic display.]Submitted totheCRO fordecision
91.10 Complete watch orclock movements,
unassembled orpartly assembled
(movement sets); incomplete watch or
clock movements, assembled; rough
watch orclock movements.Asindicated forsplitheading
ex91.10 (a) Complete watch orclock movements,
unassembled; rough watch orclock
movementsCTH except from heading 91.14 AdoptedG/RO/W/23
Page60HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
ex91.10 (b) [Complete watch orclock movements,
partly assembled andincomplete watch or
clock movements, assembled, containing
atleast twoofthefollowing components
onacommon support: timereference
device, device forconverting thetime
reference forpurposes ofdisplay, time
setting mechanism oropto-electronic
display ]
[Complete watch orclock movements,
partly assembled andincomplete watch or
clock movements, assembled, the
foregoing being movements forwhich all
ofthefollowing components, as
appropriate, areonacommon support:
timereference device, device for
converting thetimereference forpurposes
ofdisplay, timesetting mechanism or
opto-electronic display ]CTH ;or
Change from ex-91.10 (a), Submitted totheCRO fordecision
ex91.10 (c) Other CTH, except from heading 91.14 Adopted
91.11 Watch cases andparts thereof. Asspecified forsubheadings
9111.10 -Cases ofprecious metal orofmetal clad
withprecious metal[CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecision
9111.20 -Cases ofbasemetal, whether ornotgold-
orsilver-plated[CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecisionG/RO/W/23
Page61HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
9111.80 -Other cases [CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecision
9111.90 -Parts CTH Adopted
91.12 Clock cases andcases ofasimilar type
forother goods ofthisChapter, and
parts thereof.Asspecified forsubheadings.
9112.10 -Cases ofmetal [CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecision
9112.80 -Other cases [CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTSH ]Submitted totheCRO fordecision
9112.90 -Parts CTH Adopted
91.13 Watch straps, watch bands andwatch
bracelets, andparts thereof.Asspecified forsubheadings.
9113.10 -Ofprecious metal orofmetal cladwith
precious metal[CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTH orchange from parts to
finished goods classified inthesame
subheading ]Submitted totheCRO fordecisionG/RO/W/23
Page62HSCode
NumberDescription ofGoods Origin Criteria Notes Comments
A B C D E
9113.20 -Ofbasemetal, whether ornotgold- or
silver-plated[CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheading ]
[CTH orchange from parts to
finished goods classified inthesame
subheading ]Submitted totheCRO fordecision
9113.90 -Other Asindicated forsplitsubheading
ex9113.90 (a) Watch straps, bands, etc., assembled [CTH ]
[CTH, provided thegoods arefully
assembled inonecountry ]Submitted totheCRO fordecision
ex9113.90 (b) Watch straps, bands, etc., notassembled [CTH ]
[CTH, except from headings 50.07,
51.11 through 51.13, 52.08 through
52.12, 53.09 through 53.11, 54.07
through 54.08, 55.12 through 55.16,
56.03, 58.01 through 58.02, 58.06,
58.09, 59.03, 59.06 through 59.07,
60.01 through 60.02 andfrom
subheading 6307.90]Submitted totheCRO fordecision
91.14 Other clock orwatch parts. [CTH ]
[CTH orchange from blanks to
finished goods classified inthesame
subheadings ]Submitted totheCRO fordecisionG/RO/W/23
Page63
Terminology Guide
Iftheruleispresented onheading level:
Forheading:
CTH - change tothisheading from anyother heading.
Forsplitheading:
CTH - change tothissplitheading from anyother heading (N.B. change from other splits
ofthisheading areexcluded.
CTHS - change tothissplitheading fromanyother heading orfromothersplits ofthisheading.
Iftheruleispresented onsubheading level:
Forsubheading:
CTSH - change tothissubheading from anyother subheading.
Forsplitsubheading:
CTSH - change tothissplitsubheading fromanyother subheading (N.B. changes fromother
splits ofthissubheading excluded).
CTSHS - change tothissplitsubheading fromanyother subheading orfromother splits ofthis
subheading.