WORLD TRADE
ORGANIZATIONG/RO/39
6 July 1999
(99-2793)
Committee on Rules of Origin
NEGOTIATING TEXT FOR CHAPTERS 25-27 (MINERAL PRODUCTS)
44-49 (WOOD AND PAPER) AND 71 (PRECIOUS STONES AND METALS)
Harmonization Work Programme
Note by the Secretariat
This document is the most recent update of the negotiating text for chapters 25-27 (mineral
products), 44-49 (wood and paper) and 71 (precious stones and metals).G/RO/39
Page 2
Note
The original numbering of the issues for decision remains unchanged, although certain issues have
been resolved by the CRO.  The text of resolved issues has been struck out.
Notes on the table
Rules of origin relating to unresolved issues submitted by the Technical Committee on Rules of Origin
(TCRO) for decision by the Committee on Rules of Origin (CRO) are designated as "Submitted to CRO
for decision";
Agreed rules of origin submitted by the TCRO for endorsement by the CRO are designated as
"Basket 1";
Rules of Origin endorsed or resolved by the CRO are designated as "Adopted".  The CRO agreed that
the adopted rules should not be reopened at the le vel of the CRO, keeping in mind, however, that, in
accordance with Article 9.3(b) of the Agreement, th e CRO should finally consider the results of the
Harmonization Work Programme in terms of their overall coherence (see document G/RO/W/22/Rev.1).G/RO/39
Page 3
ISSUES FOR DECISION; CHAPTERS 25 - 27
ISSUE NO. 1: IS THE PRODUCTION OF CEMENT FROM CLINKER A SUBSTANTIAL
TRANSFORMATION?
OPTION A:
1. The obtaining of cement from clinker is a substantial transformation.  The rule of origin for
the cement of subheadings 2523.21 - 2523.90 should be based on a change of subheading from the
clinkers of subheading 2523.10.  The following technical information has been provided in support of
this option:
2. Characteristics of clinkers and cement:  Cement and clinkers are two different articles of
commerce with different character and properties, us es and name.  Clinkers are obtained from firing
limestone containing a suitable proportion of clay.  Clinkers consist mainly of calcium silicates in
pebble form.  The clinkers cannot be used as a building material unless transformed into cement.They do not have the same bonding effect as cement when mixed with fine and coarse aggregates to
produce concrete for use in construction.  Cement, on the other hand, has to meet certain
specifications like minimum fineness of 225 m²/kg and minimum compressive strength in order to be
used in concrete work.  Various types of cement can be produced from the same clinkers.  To obtain
cement from clinkers, the clinkers have to be ground to higher fineness and interground ingredientsand additives are introduced during the grinding process.  It is considered that it is the fact of a new
product and not the process which determines that a substantial transformation has occurred.
3. Production of cement:  It is the transformation from clinkers to cement which is the last
substantial transformation to obtain cement.  To prepare the final product, cement, there may be
several transformations.  Origin should be conferred based on the last substantial transformation.  The
production of clinkers to cement involves grinding under precise control of temperature in the finish
mill to prevent agglomeration.  Gypsum and interground ingredients such as slag for Portland Blast
Furnace Cement, limestone for masonry cement, and materials like coal fly ash and silica fume are
mixed during the grinding process.  The process has to be precise to achieve certain specifications
such as minimum compressive strength and fineness.
4. The grinding process effectively transforms clinker into a new finished product, cement,
which can then be used for concrete work.  The finished product, cement has different properties
compared to clinkers.  Cement should satisfy certain chemical properties depending on the final use of
the cement.  The technical precision of the end product such as precise and equal particle size fineness
and minimum compressive strength to conform with industry standards for cement and for the productto fulfil its function were important in identifying a new product.
5. In response to the proposition that grinding alone is not substantial transformation, it is argued
that firstly, grinding is not a simple operation.  It requires high consumption of energy and precise
control of the temperature in the finish mill.  For the production of cement, the clinkers have to begrounded to a precise particle size and fineness in order to conform to industry standards of minimum
compressive strength.  Secondly, grinding is always combined with other processes including the
proportionally controlled mixing and blending with other materials such as blast furnace slag, and that
the entire process represents substantial transformation. It was further stated that there is no trade in
ground clinkers not further processed into cement and that such ground clinkers were an intermediateproduct that could not be used for any purpose other than further processing into cement.G/RO/39
Page 4
OPTION B:
6. The process to prepare cement from clinker is not a substantial transformation.  The rule of
origin for the cement of subheadings 2523.21 - 2523.90 should be based on a change of heading from
the minerals of headings 25.21 - 25.23.
7. Clinker is prepared from primary raw materials including limestone, clay, shale and iron ore.
The principal steps in manufacturing clinker consist of crushing, grinding, mixing, and burning raw
materials to make clinker. The clinker is then ground to make powdered cement.  A change from
clinker of subheading 2523.10 to cements of subheadings 2523.21 to 2523.90 does not entail a
substantial transformation.  In fact the processes required to prepare clinkers are more varied and
complex than the grinding necessary to convert the clinker into powdered cement
8. Production of cement from clinker is a “simple” process.  It is merely ground to reduce the
size of clinkers to cement.  Grinding alone is not considered a substantial transformation.  It was noted
that the HS subheading explanatory note defines “Portland cement”  as “cement obtained by grinding
Portland clinker with the possible addition of a small quantity of calcium sulphate” and that it mightbe necessary to define supplementary criteria to qualify the rule in order to separate “simple”
grinding.
Relevant HS code number
9. Subheadings 2523.21 (Portland cement: white cement, whether or not artificially coloured),
2523.29 (Portland cement: other), 2523.30 (Aluminous cement) and 2523.90 (Other hydraulic
cements)
References
10. Report of the 3rd Session (D oc. 39.870, Annexes C1 and C2)
Report of the 8th Session (Doc. 41.211, Annexes K1 and K2)
Reference document (Doc. 39.861/Add 7, pages 4 to 5)
Reference document (Doc. 41.252, Appendix 2)
Reference document (Doc. 41.506)
ISSUE NO. 2: IS THE CRUSHING OR POWDERING OF NATURAL STEATITE AND TALC A
SUBSTANTIAL TRANSFORMATION?
Differing views presented in the re levant Technical Committee discussion
OPTION A:
11. The crushing or powdering of natural steatite or talc is a substantial transformation.  The rule
of origin should be based on a change at subheading level form the not crushed or powdered material
of 2526.10.
12. The key element for consideration in deciding if a substantial transformation had occurred by
crushing or powdering was that the end product had a different character and uses.  The complexity of
the process itself was not a primary factor in this decision and should not be given much emphasis.
The technical precision of the end product such as precise and equal particle size for the product tofulfil its function were important in identifying a new product.G/RO/39
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OPTION B:
13. Merely grinding is not considered to bring about a substantial transformation.  The country of
origin is where the good is obtained in its natural or unprocessed state.
Relevant HS code number
14. Subheadings 2526.20 (Natural steatite, whether or not roughly trimmed or merely cut, by
sawing or otherwise, into blocks or slabs of a rectangular (including square) shape; talc: crushed or
powdered)
References
15. Report of the 3rd Session (Doc. 39.870, Annexes C1 and C2)
Report of the 8th Session (D oc. 41.211, Annexes K1 and K2)
Issue for Decision, No. 3
16.         Is the processing of molybdenum ore into molybdenum concentrate (lubricant) of 25.30 a
substantial transformation?
Differing views presented in the re levant Technical Committee discussion
OPTION A :
17.         The processing of molybdenum ore into molybdenum concentrate (lubricant) of 25.30 is a
substantial transformation.
18.         The Molybdenite co ncentrates classified in heading 25.30 are obtained from molybdenum
ores (26.13) by certain physical treatments such as  washing, grinding, flotation and by heat treatment,
other than calcination, designed to drive off traces of oil and water, for non-metal lurgical uses
(lubrication).  Other Molybdenite concentrates obtained by calcination or roasting remain classified
with the ore in heading 26.13.  Because different methods of processing the ores have been used it is
not possible to reclassify between the headings as a result of a decision on change of use.  It is not
necessary therefore to provide an exclusion of change from molybdenum concentrates of 26.13 and
the rule of origin should be CTH to provide for manufacture from the molybdenum ore of 26.13.
19.         The conclusion that a substantial transformation has occurred is based firstly on the
conclusion that a new product with new uses and characteristics has been produced.  The nature of the
process and how complex is not a decisive factor.
OPTION B :
20.         Molybdenum concentrates are classified in headings 25.30 and 26.13.  A change of
classification between these products is not a substantial transformation.
21.         The rule of origin should be CTH except from the concentrates of heading 26.13.
Relevant HS code number
22.         Part of heading 25.30 (Mineral substances not elsewhere specified or included)
ReferencesG/RO/39
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23.         Report of the 3rd Session (Doc. 39.870, Annexes C1 and C2)
              Report of the 8th Session (Doc. 41.211, Annexes K1 and K2)
Issue for Decision, No. 4
24.         Is the conversion of metal ores into concentrates, including by calcination or roasting, a
substantial transformation?
Differing views presented in the re levant Technical Committee discussion
OPTION A :
25.         Metal ores extracted from the mines ar e always accompanied by such unwanted matter as
mud, dirt and gangue which can add to the costs of transport or hamper subsequent metallurgical
operations.  To remove such unwanted matter, metal ores are normally converted into metal ore
concentrates.  Concentration is a substantial transformation of the ore and the rule of origin should be
based on a change within the heading.
26.         The concentration of ores is a process to enrich the ore by a series of operations applied
sequentially in two phases:  mechanical preparation by primary crushing, screening, secondary
crushing and screening, tertiary crushing and screening, grinding to less than 0.4mm to free the ore
completely;  separation phase:  by either gravity process, magnetic separation or flotation with
chemical reagents.  An ore can contain as little as 5-15% of the main material and it is not economical
to ship in this form.  It is therefore normal to co ncentrate the product.  Generally this is done near the
mine, but not always.  It is therefore possible that two countries may be involved in the obtaining of
the ores and of the concentrates of the ores.  It is a complicated process and the fact that it normally
happens in the same country is not relevant to the issue of substantial transformation which should be
based on the fact of production of a new product: a concentrate.  Other physical or physico-chemical
operations for concentration include magnetic separation, gravimetric separation, flotation, screening,
settling and filtering.  Calcination or roasting are also methods of concentration considered to be
substantial.
27.         It is possible that several minerals can be found together in the ore and concentration in this
case also separates the different metals to produce a product with a new and different character and
use.  The product acquires a new status.  It is not necessary for the rule to specify certain processes as
substantial transformation.
28.         It is recognised that there is a difference in the character of a naturally occurring high
concentration ore that is obtained in that form from the ground and concentrates obtained from low
grade ore by processing.  The former originates in the country where it is obtained in its natural or
unprocessed state and the latter, which has been substantially transformed, originates in the country
where the concentration takes place.
OPTION B :
29.         Ores are not traded internationally exce pt as concentrates.  The Concentration of ores happens
near the area of mining of the ores.  The process of removing slag is not considered to be a substantial
transformation.  High grade ores can have naturally the same concentration as a concentrate.  If the
product occurs naturally it is not appropriate to have a substantial transformation rule.
Relevant HS code number
30.         Headings 26.01 to 26.17 (Ores and concentrates)G/RO/39
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References
31.         Report of the 3rd Session (Doc. 39.870, Annexes C1 and C2)
              Report of the 8th Session (Doc. 41.211, Annexes K1 and K2)
              Reference document (Doc. 41.384, page 2)
              Reference document (Doc.  41.424, page 17)
Issue for Decision, No. 5
32          Is the production of briquettes, ovoids and similar solid fuels manufactured from coal a
substantial transformation?
Differing views presented in the re levant Technical Committee discussion
OPTION A :
33.        The manufacture of briquettes, ovoids and similar solid fuels from coal is considered to be a
substantial transformation.  The rule should be CTSH  to provide for processing from the coal of the
same heading.
34.         The process calls for complicated operati ons including crushing coal, subjecting the coal to
low temperature carbonisation to produce coal char, mixing it with bind materials, pressing it into
shape as briquettes or ovoids or other shapes and drying.  Furthermore, the resultant goods, which can
be ignited easier can be burnt stronger, can emit less smell and can be preserved longer than the
original goods, and has thus become a new product.
OPTION B :
35.         The processes to obtain the goods of this subheading do not bring about a substantial
transformation.  Origin should be the country where the coal is obtained in its natural or unprocessed
state.
Relevant HS code number
36.         Subheading 2701.20 (Briquettes, ovoids and similar solid fuels manufactured from coal)
References
37.         Report of the 3rd Session (Doc. 39.870, Annexes C1 and C2)
              Report of the 8th Session (Doc. 41.211, Annexes K1 and K2)
              Reference document (Doc. 39.861/Add. 6, page 4)
              Reference document (Doc. 41.351, page 10)
              Reference document (Doc. 41.384, page 2)
Issue for Decision, No. 6
38.         Is the manufacture of pitch coke from pitches of coal tars and other mineral tars of the same
heading a substantial transformation?
Differing views presented in the re levant Technical Committee discussion
OPTION A :G/RO/39
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39.         Pitch coke (subheading 2708.20) is obtained by the distillation of coal tars, other mineral tars
or of their pitches.  It is a new product obtained as a result of a substantial transformation.  The rule
should reflect a change of subheading from 2708.10.
OPTION B :
40.         The proc essing to produce pitch coke from pitch is not a substantial transformation.  The rule
should require a change of heading form the coal tars or other mineral tars.
Relevant HS code number
41.         Subheading 2708.20 (Pitch coke)
References
42.         Report of the  3rd Session (Doc. 39.870, Annexes C1 and C2)
              Report of the 8th Session (Doc. 41.211, Annexes K1 and K2)
ISSUE No. 7:  SPECIFIC PROCESSES THAT CONFER ORIGIN - CHAPTER NOTE 2
43. Chapter Note 2 reads: “Goods of 27.07and 27.10 through 27.13 that have been obtained as a
result of a chemical reaction or specified physical separation process, including the processes listedbelow are deemed to be goods of the country where the reaction or the process occurred:
 (a) vacuum distillation;
 [(b) redistillation by fractionation (including extractive distillation);  (EC)  ]
 (c) cracking (including catalytic cracking, hydrocracking, thermal cracking, coking, visbreaking,
platforming);
 (d) catalytic reforming;
 (e) desulphurization (removal of bound sulphur);
 (f) alkylation (including dehy droalkylation, hydroalkylation);
 (g) hydrogenation;
 (h) extraction by means of selective solvents;
 (i)  the process comprising all the following operations: processing with concentrated sulphuric
acid, oleum or sulphuric anhydride, neutralisation with alkaline agents;
 (j)  polymerization;
 (k)  isomerization;
 [(l) deparaffining by a process other than filterin g, in respect of products falling within heading
27.10 only;(EC)  ]
 [(m) in respect of fuel oils falling within head ing ex 27.10, atmospheric distillation, on condition
that less than 30% of these products distils, by volume, including losses, at 300 oC by the
ASTM D 86 method; (EC)  ]
[(n) in respect of heavy oils other than gas oils and fuel oils falling within heading ex 27.10 only,
treatment by means of a high-frequency electrical brush-discharge.  (EC)  ]
OPTION A:  Yes44. Obtaining pretroleum and hydrocarbon products of headings 27.07 and 27.10 through 27.13
by operations as lis ted in Chapter Note 2 is considered origin-conferring.  This list provides userswith a ready reference as to what petrolchemical operations that may render chemical reaction or
specified physical separation to the input materials and thereby, origin of a petrochemical product can
be determined conveniently. (EC) (SG) (JPN) (NZ) (TH) (NOR)G/RO/39
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OPTION B:  Yes, provided
45. Subject to further refinement, this Chapter Note may apply to products of headings 27.07 and
27.10 through 27.13.  The origin rules preferred are:
CTSH with exceptions; or Chapter Notes to be agreed to  (CAN) (for subheadings 2711.12,
2711.13, 2711.14, 2711.19 and 2711.29)
CTH or Chapter Notes to be agreed to  (CAN) (for headings 27.12 and  27.13)
CTH or Chapter Notes (including Note 6) to be agreed to  (US) (for heading 27.13)
Relevant HS codes:
Chapter Note 2 for Chapter 27
ISSUE No. 8: MIXING AND BLENDING OF PRODUCTS OF HEADINGS 27.07 AND 27.10
TO 27.15 - CHAPTER NOTE 3
OPTION A:  Yes46. For the purposes of headings 27.07 and 27.10 through 27.15, the deliberate and proportionally
controlled mixing or blending (including disper sing) of materials to conform to predetermined
specifications which results in the production of a good with physical and chemical characteristics
different from the input materials is considered origin conferring. (EC) (SG)
OPTION B:  Yes47. Goods of headings 27.07 or 27.10 that have been blended to conform to specific
predetermined physical specifications, such as boiling point range, viscosity, solidification
temperature, research or motor octane number, or cetane number, which are different from the
specifications of  the input materials, are deemed to be goods of the country where the blending
occurred, provided that:
(a) In the case of  motor fuels (other than diesel fuels), the good has a Research Octane Number
(RON) of 6 or more units higher than that  of the blending component that by volume
constitutes the single largest blending component obtained from a single country; or
(b) In the case of other goods, not more than 70 percent by volume of the product is composed of
blending components originating from a country other than the country where the blending
occurred. (US)
In respect of subparagraphs (a) and (b) of Op tion B, SG advances the following comments:
48. “On condition (a), with respect to motor fuels, it does not seem to be appropriate to focus on the
difference between the octane number of the finish ed blend and that of the largest volume blending
component.  Whether the increase of the requisite number 6 in octane level is achieved or not is
determined in part by the relative proportions of the blending components.  There does not appear to
be a strong justification for a rule that would deem origin to be conferred by increasing the octane
number from 92 to 98 but treating change in octane number from 93 to 98 as no qualifying operations.
49. On condition (b), the focus on the origin of the blending components seems to run counter to
the basic intent of the rule.  The source of the blending components should not be relevant if origin isG/RO/39
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to be conferred by virtue of the fact that the finished goods conform to predetermined specifications
that the individual blending components do not satisfy.”
Relevant HS codes:
Chapter Note 3 for Chapter 27ISSUE No. 9:  SIMPLE PROCESSES THAT DO NOT CONFER ORIGIN - CHAPTER NOTE 4OPTION A:  Yes50. The operations listed below should not be considered origin-conferring whether they are
carried out individually or together in any combination.
- cleaning
- decantation
- desalination- water separation
- filtering
- colouring
- marking
- obtaining a sulphur content as a result of mi xing products with different sulphur contents
- addition of flavouring substances
- any combination of these operations. (EC) (NOR) (ARG) (JPN) (NZ) (TH)
OPTION B:  Yes, provided
51. Subject to further refinement, the Chapter Note may apply to products of headings 27.07,
27.10 through 27.13 and 27.15.  The origin rules preferred are:
CTSH with exceptions; or Chapter Notes to be agreed to  (CAN) (for subheadings 2711.12,
2711.13, 2711.14, 2711.19 and 2711.29)
CTH or Chapter Notes to be agreed to  (CAN) (for headings 27.12, 27.13 and 27.15)
CTH or Chapter Notes (including Note 6) to be agreed to  (US) (for headings 27.13 and 27.15)
OPTION C:  No
52. The creation of Chapter Note 4 is not considered necessary. (SG)
Relevant HS codes:
Chapter Note 4 for Chapter 27ISSUE No. 10: VALUE ADDED RULE FOR GOODS OF HEADINGS 27.07 AND 27.10 -
CHAPTER NOTE 5
OPTION A:  Yes53. Due to on-going technological developments, it is not possible to define an exhaustive range
of substantial blending processes for goods of headings 27.07 and 27.10.  Blending processes
involving proprietary formulation should also be re cognized as substantial.  An alternative value-G/RO/39
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added rule will allow for expression of substantial transformation that is in tandem with technological
changes.  A maximum level of 75% foreign content is deemed adequate.
54. Chapter Note 5 as follows is therefore proposed:
“Goods of headings 27.07 and 27.10 that are not wholly the product of one country shall be
deemed to originate in the last country where the following occurs:
the CIF value of non-originating materials imported and used in the production does not exceed
75% of the ex-factory price of the goods.  The method of calculating foreign content is as follows :
Foreign Content = CIF Value of Non-originating Raw Materials x 100% <  75%
                                                               Ex-Factory Pricewhere Ex-Factory Price = Total materials cost + Direct labour costs + Overheads costs + Profits.”
Taken into account the above value added criterion, the origin rule for headings 27.07 and
27.10 should be: “CTH or Chapter Notes, 1, 2, 3(a) and 5 apply”.  (SG)
OPTION B:  No55. Various arguments are advanced, for examples:
(a) the origin of goods can be better determined by referring to the manufacturing
processes performed;
(b) the calculation of the added value is affected by a number of economic factors, e.g.
fluctuation of material prices, labour costs, profit margins and exchange rates.  These
factors are but loosely related to the physical transformation of the goods from materials.
56. The origin rules should not be formulated with reference to Chapter Note 5 as origin-
conferring.
Relevant HS codes:
Headings 27.07 and 27.10G/RO/39
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CHAPTER 25
Notes:
[Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:[Weight (CAN) (EC) (US)]
[Total value of parts and related processing activity (CH)]
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 25 Salt; Sulphur; Earth and Stone;
Plastering Materials, Lime and Cement
25.01 Salt (including table salt and denatured
salt) and pure sodium chloride, whether
or not in aqueous solution or containing
added anti-caking or free-flowing
agents; sea waterAs indicated at the split heading level. Adopted
ex 25.01 (a) - Pure sodium chloride CTHS
ex 25.01 (b) - Refined salt, other than pure sodium
chlorideCTHS
ex 25.01 (c) - Other The country of origin of the goods shall be the
country in which the goods of this split heading
are obtained in their natural or unprocessedstate.
25.02 Unroasted iron pyrites The country of origin of the goods shall be the
country in which the unroasted iron pyrites are
obtained in their natural or unprocessed state.AdoptedG/RO/39
Page 13HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
25.03 Sulphur or all kinds, other than
sublimed sulphur, precipitated sulphur
and colloidal sulphur .As indicated at the split heading level. Adopted
ex 25.03 (a)
ex 25.03 (b)- Pure or refined
- OtherCTHS
The country of origin of the goods shall be the
country in which the sulphur of this split
heading is obtained in its natural or unprocessedstate.
25.04 Natural graphite The country of origin of the goods shall be the
country in which the natural graphite of thisheading is obtained in its natural or unprocessedstate.Adopted
2504.10
2504.90- In powder or in flakes
- OtherAs indicated at the heading level
25.05 Natural sands of all kinds, whether or
not coloured, other than metal-bearing
sands of Chapter 26The country of origin of the goods shall be the
country in which the natural sands of this
heading are obtained in their natural orunprocessed state.Adopted
2505.10
2505.90- Silica sands and quartz sands
- OtherAs indicated at the heading level .
25.06 Quartz (other than natural sands);
quartzite, whether  or not roughly
trimmed or merely cut, by sawing orotherwise, into blocks or slabs of arectangular (including square) shape.The country of origin of the goods shall be the
country in which the quartz or quartzite of this
heading is obtained in its natural or unprocessedstate.AdoptedG/RO/39
Page 14
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2506.10
2506.21
2506.29- Quartz
- Quartzite:
-- Crude or roughly trimmed
-- OtherAs indicated at the heading level.
25.07 Kaolin and other kaolinic clays,
whether or not calcined.As indicated at the split heading level Adopted
ex 25.07 (a)
ex  25.07(b)- Calcined
- OtherCTHS
The country of origin of the goods shall be the
country in which the minerals of this splitheading are obtained in their natural orunprocessed state.
25.08 Other clays (not including expanded
clays of heading No._68.06), andalusite,
kyanite and sillimanite, whether or not
calcined; mullite; chamotte or dinasearths.As indicated at the split heading level. Adopted
ex  25.08 (a)
ex25.08 (b)- Calcined
- OtherCTHS
The country of origin of the goods shall be the
country in which the minerals of this split
heading are obtained in their natural orunprocessed state.G/RO/39
Page 15HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2508.10
2508.20
2508.30
2508.40
2508.502508.602508.70- Bentonite
- Decolourising earths and  fuller’s earth
- Fire-clay
- Other clays
- Andalusite, kyanite and sillimanite
- Mullite- Chamotte or dinas earthsAs indicated at the heading level.
25.09 Chalk The country of origin of the goods shall be the
country in which the chalk of this heading isobtained in its natural or unprocessed state.Adopted
25.10 Natural calcium phosphates, natural
aluminium phosphates and phosphaticchalkThe country of origin of the goods shall be the
country in which the minerals of this heading
are obtained in their natural or unprocessed
state.Adopted
2510.10
2510.20- Unground
- GroundAs indicated at the heading level.
25.11 Natural barium sulphate (barytes);
natural barium carbonate (witherite),whether or not calcined, other thanbarium oxide of heading No. 28.16.As indicated at the subheading level. Adopted
2511.10 - Natural barium sulphate (barytes) The country of origin of the goods shall be the
country in which the natural barium sulphate of
this subheading is obtained in its natural or
unprocessed state.
2511.20 - Natural barium carbonate (witherite) As indicated at the split subheading level.G/RO/39
Page 16
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
ex2511.20 (a)
ex 2511.20(b)-- Calcined
-- OtherCTSHS.
The country of origin of the goods shall be the
country in which the mineral of this split
subheading is obtained in its natural orunprocessed state.
25.12 Siliceous fossil meals (for example,
kieselguhr, tripolite and diatomite) and
similar siliceous earths, whether or not
calcined, of an apparent specific gravityof 1 or less.As indicated at the split heading level . Adopted
ex 25.12 (a)
ex 25.12 (b)- Calcined
- OtherCTHS
The country of origin of the goods shall be the
country in which the minerals of this split
heading are obtained in their natural or
unprocessed state.
25.13 Pumice stone; emery; natural
corundum, natural garnet and other
natural abrasives, whether or notheat-treated.The country of origin of the goods shall be the
country in which the minerals of this heading
are obtained in their natural or unprocessedstate.Adopted
2513.11
2513.19
2513.20- Pumice stone:
-- Crude or in irregular pieces,  including
crushed pumice (“bimskies”)
-- Other
- Emery, natural corundum, natural garnetand other natural abrasivesAs  indicated at  the heading level.
25.14 Slate, whether or not roughly trimmed
or merely cut, by sawing or otherwise,into blocks or slabs of a rectangular(including square) shape.The country of origin of the goods shall be the
country in which the slate of this heading isobtained in its natural or unprocessed state.AdoptedG/RO/39
Page 17HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
25.15 Marble, travertine, ecaussine and other
calcareous monumental or building
stone of an apparent specific gravity of
2.5 or more, and alabaster, whether or
not roughly trimmed or merely cut, by
sawing or otherwise, into blocks or slabsof a rectangular (including square)shape.The country of origin of the goods shall be the
country in which the minerals of heading areobtained in their natural or unprocessed state.Adopted
2515.11
2515.12
2515.20- Marble and travertine:
--  Crude or roughly trimmed
--  Merely cut, by sawing or otherwise,
into blocks or slabs or a rectangular
(including square) shape
-   Ecaussine and other calcareousmonumental or building stone; alabasterAs indicated at the heading level.
25.16 Granite, porphyry, basalt, sandstone
and other monumental or building
stone, whether or not roughly trimmed
or merely cut, by sawing or otherwise,
into blocks or slabs of a rectangular(including square) shape.The country of origin of the goods shall be the
country in which the minerals of this heading
are obtained in their natural or unprocessedstate.AdoptedG/RO/39
Page 18
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2516.11
2516.12
2516.21
2516.22
2616.90-   Granite:
--  Crude or roughly trimmed
--  Merely cut, by sawing otherwise, into
blocks or slabs of a rectangular (including
square) shape
-   Sandstone--  Crude or roughly trimmed
--  Merely cut, by sawing or otherwise,
into blocks or slabs of a rectangular
(including square) shape
-   Other monumental or building stoneAs indicated at the heading level.
25.17 Pebbles, gravel, broken or crushed
stone, of a kind commonly used for
concrete aggregates, for road metalling
or for railway or other ballast, shingleand flint, whether or not heat-treated;
macadam of slag, dross or similar
industrial waste, whether or not
incorporating the materials cited in the
first part of the heading; tarredmacadam; granules, chippings and
powder, of stones of heading No. 25.15
or 25.16, whether or not heat-treated.As indicated at the subheading level. Adopted
2517.10 - Pebbles, gravel, brok en or crushed stone,
of a kind  commonly used for concrete
aggregates, for road metalling or forrailway or other ballast shingle and flint,whether or not heat treatedThe country of origin of the goods shall be the
country in which the minerals of this
subheading are obtained in their natural orunprocessed state.G/RO/39
Page 19HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2517.20 -  Macadam of slag, dross or similar
industrial waste, whether or not
incorporating the materials cited in
subheading No. 2517.10CTSH
2517.30 - Tarred macadam CTSH
- Granules, chippings and powder, of
stones of  heading No. 25.15 or 25.16,
whether or not heat treated
2517.41 -- Of marble The country of origin of the goods shall be the
country in which the minerals of this
subheading are obtained in their natural or
unprocessed state.
2517.49 -- Other The country of origin of the goods shall be the
country in which the minerals of this
subheading are obtained in their natural or
unprocessed state.
25.18 Dolomite, whether or not calcined;
dolomite roughly trimmed or merely
cut, by sawing or otherwise, into blocks
or slabs of a rectangular (including
square) shape; agglomerated dolomite
(including tarred dolomite).As indicated at the subheading level. Adopted
2518.10 - Dolomite not calcined The country of origin of the goods shall be the
country in which the dolomite of this
subheading is obtained in its natural or
unprocessed state.
2518.20 - Calcined dolomite CTSHG/RO/39
Page 20
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2518.30 Agglomerated dolomite (including tarred
dolomite)As indicated at the split subheading level.
ex2518.30 (a)
ex2518.30 (b)-Tarred dolomite
- OtherCTSHS
The country of origin of the goods shall be the
country in which the minerals of this split
subheading are obtained in their natural orunprocessed state.
25.19 Natural magnesium carbonate
(magnesite); fused magnesia;dead-burned (sintered) magnesia,
whether or not containing small
quantities of other oxides added before
sintering; other magnesium oxide,
whether or not pure.As indicated at the subheading level. Adopted
2519.10 - Natural magnesium carbonate
(magnesite)The country of origin of the goods shall be the
country in which the minerals of this
subheading are obtained in their natural orunprocessed state.
2519.90 - Other As indicated at the split subheading level.
ex2519.90 (a)
ex2519.90 (b)-- Calcined, fused or sintered
-- OtherCTSHS
CTH
25.20 Gypsum; anhydrite; plasters (consisting
of calcined gypsum or calcium sulphate)
whether or not coloured, with orwithout small quantities of acceleratorsor retarders.As indicated at the subheading level AdoptedG/RO/39
Page 21HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2520.10 - Gypsum; anhydrite. The country of origin of the goods shall be the
country in which the gypsum or anhydrite of
this subheading are obtained in their natural or
unprocessed state.
2520.20 - Plasters CTSH
25.21 Limestone flux; limestone and other
calcareous stone, of a kind used for the
manufacture of lime or cement.The country of origin of the goods shall be the
country in which the minerals of this heading
are obtained in their natural or unprocessedstate.Adopted
25.22 Quicklime, slaked lime and hydraulic
lime, other than calcium oxide and
hydroxide of heading No. 28.25.As indicated at the subheading level. Adopted
2522.10 - Quicklime CTH
2522.20 - Slaked lime CTSH
2522.30 - Hydraulic lime CTH
 25.23 Portland cement, aluminous cement,
slag cement, supersulphate cement and
similar hydraulic cements, whether ornot coloured or in the form of clinkersAs indicated at the subheading level. Adopted
2523.10 -   Cement clinkers CTH
-   Portland cement:
2523.21 --  White cement, whether or not
artificially coloured[CTH]
[CTSH]Submitted to CRO for
decision
2523.29 --  Other [CTH]
[CTSH]Submitted to CRO for
decisionG/RO/39
Page 22
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2523.30 -   Aluminous cement [CTH]
[CTSH]Submitted to CRO for
decision
2523. 90 -   Other hydraulic cements [CTH]
[CTSH]Submitted to CRO for
decision
25.24 Asbestos The country of origin of the goods shall be the
country in which the asbestos of this heading
is obtained in its natural or unprocessed state.Adopted
25.25 Mica, including splittings; mica waste. As indicated at the subheading level . Adopted
2525.10 - Crude mica and mica rifted into sheets
or splittingsThe country of origin of the goods shall be the
country in which the minerals of this
subheading are obtained in their natural or
unprocessed state
2525.20 - Mica powder The country of origin of the goods shall be the
country in which the minerals of this
subheading are obtained in their natural or
unprocessed state
2525.30 - Mica waste The country of origin of the goods shall be the
country in which the mica waste of this
subheading is derived.
25.26 Natural steatite, whether or not
roughly trimmed or merely cut, by
sawing or otherwise, into blocks or
slabs of a rectangular (includingsquare) shape; talc.As indicated at the subheading level. Adopted
2526.10 - Not crushed, not powdered The country of origin of the goods shall be the
country in which the minerals of this
subheading are obtained in their natural or
unprocessed stateG/RO/39
Page 23HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2526.20 - Crushed or powdered [CTSH]
[The country of origin of the goods shall be
the country in which the minerals of thissubheading are obtained in their natural or
unprocessed state]Submitted to CRO for
decision
25.27 Natural cryolite; natural chiolite The country of origin of the goods shall be the
country in which the minerals of this heading
are obtained in their natural or unprocessed
stateAdopted
25.28 Natural borates and concentrates
thereof (whether or not calcined), but
not including borates separated from
natural brine; natural boric acid
containing not more than 85% ofH3BO3 calculated on the dry weight.As indicated at the split heading level. Adopted
ex 25.28 (a) - Calcined CTHS
ex 25.28 (b) - Other The country of origin of the goods shall be the
country in which the minerals of  this splitheading are obtained in their natural or
unprocessed state
2528.10  - Natural sodium borates and
concentrates thereof (whether or not
calcined)As indicated at the split heading level.
2528.90 - Other
25.29 Felspar; leucite; nepheline and
nepheline syenite; fluorsparThe country of origin of the goods shall be the
country in which the minerals of this heading
are obtained in their natural or unprocessed
stateAdopted
2529.10 - Felspar As indicated at the heading level.
- Fluorspar:G/RO/39
Page 24
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2529.21 -- Containing by weight 97% or  less of
calcium fluoride
2529.22 -- Containing by weight more than 97%
of calcium fluoride
2529.30 - Leucite; nepheline and nepheline
syenite
25.30 Mineral substances not elsewhere
specified or included.As indicated at the split heading level. Adopted
ex 25.30 (a) - Calcined. CTHS
ex 25.30 (b) - Molybdenite concentrates [CTH]
[CTH, except from concentrates of heading
26.13]Submitted to CRO for
decision
ex 25.30 (c) - Other The country of origin of the goods shall be the
country in which the minerals this split
heading are obtained in their natural or
unprocessed state
2530.10 -  Vermiculite, perlite and chlorites,
unexpandedAs indicated at the split heading level.
2530.20 -  Kieserite, epsomite (natural magnesium
sulphates)
2530.40 -  Natural micaceous iron oxides
2530.90 -  OtherG/RO/39
Page 25CHAPTER 26
Notes :
[Criteria to apply to Appendix 2, Rule 2(g)]The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule 2(g) for this Chapter are:
[Weight (CAN) (EC) (US)]
[Total value of parts and related processing activity (CH)]
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 26 Ores, Slag and Ash
26.01 -
26.17See individual headi ngs and subheadings
set out below.As indicated at the split heading level. Adopted
ex 26.01 (a)
to
ex 26.17 (a)
ex26.01 (b)
to
ex 26.17 (b)- Concentrates
- OtherCTHS
The country of origin of the goods shall be the
country in which the metal ores are obtained intheir natural or unprocessed state.
26.01 Iron ores and concentrates, including
roasted iron pyritesAs indicated at the split heading level.
-Iron ores and concentrates, other than
roasted iron pyrites:
2601.11 -- Non-agglomerated
2601.12 -- AgglomeratedG/RO/39
Page 26
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2601.20 - Roasted iron pyrites
26.02 Manganese ores and concentrates,
including manganiferous iron ores and
concentrates with a manganese content of
20% or more, calculated on the dryweight
26.03 Copper ores and concentrates
26.04 Nickel ores and concentrates
26.05 Cobalt ores and concentrates
26.06 Aluminium ores and concentrates
26.07 Lead ores and concentrates
26.08 Zinc ores and concentrates
26.09 Tin ores and concentrates
26.10 Chromium ores and concentrates
26.11 Tungsten ores and concentrates
26.12 Uranium or thorium ores and
concentrates
2612.10 Uranium ores and concentrates
2612.20 Thorium ores and concentrates
26.13 Molybdenum ores and concentrates
2613.20 - Roasted
2613.90 -Other
26.14 Titanium ores and concentratesG/RO/39
Page 27HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
26.15 Niobium, tantalum, vanadium or
zirconium ores and concentrates
2615.10 - Zirconium ores and concentrates
2615.90 - Other
26.16 Precious metal ores and concentrates
2616.10 - Silver ores and concentrates
2616.90 - Other
26.17 Other ores and concentrates
2617.10 - Antimony ores and concentrates
2617.90 - Other
26.18 Granulated slag (s lag sand) from the
manufacture of iron or steel.The country of origin of the goods shall be the
country in which the slags of this heading are
derived.
26.19 Slag, dross (other than granulated slag),
scalings and other waste from the
manufacture of iron or steel.The country of origin of the goods shall be the
country in which the slags, dross, scalings or
other waste of this heading are derived.
26.20 Ash and residues (other than from the
manufacture of iron or steel), containing
metals or metal compounds.The country of origin of the goods shall be the
country in which the ash or residues of this
heading are derived.G/RO/39
Page 28
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2620.11
2620.19
2620.20
2620.30
2620.402620.502620.90-Containing mainly zinc:
-- Hard zinc spelter
-- Other
- Containing  mainly lead
- Containing  mainly copper
- Containing  mainly aluminium- Containing  mainly vanadium- OtherAs  indicated at  the heading level.
26.21 Other slag and ash, including seaweed
ash (kelp).The country of origin of the goods shall be the
country in which the slag or ash of this headingis derived.G/RO/39
Page 29CHAPTER 27
Chapter Notes
1. Chemical reaction    (Adopted)
A “chemical reaction” is a process (including a biochemical process) which results in a molecule with a new structure by breaki ng intramolecular
bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.
The following are not considered to be chemical  reactions for the purposes of this definition:
(a) dissolving in water or other solvents;
(b) the elimination of solvents including solvent water;  or
(c) the addition or elimination of water of crystallization.
2. Specific processes that confer origin    Submitted to CRO for decision (Issue No.7)
[Goods of headings  27.07, 27.10 through 27.13 of Chapter 27 that ha ve been obtained as a result of a chemical reaction or spec ified
physical separation process, including the processes listed below, are deemed to be goods of the country where the reaction or the
process occurred (EC) (SG) (NOR) (TH) (JPN) (NZ):
(a) vacuum distillation;
[(b) redistillation by fractionation (including extractive distillation); (EC) ]
(c) cracking (including catalytic cracking, hydrocrackin g, thermal cracking, coking, visbreaking, platforming );
(d) catalytic reforming;
(e) desulphurization (removal of bound sulphur);
(f) alkylation (including dehydr oalkylation, hydroalkylation);
(g) hydrogenation;
(h) extraction by means of selective solvents;
(i) the process comprising all the following operations: processing  with concentrated sulphuric ac id, oleum or sulphuric anhydri de,
neutralisation with alkaline agents;
(j) polymerisation;(k) isomerization;
[(l) deparaffining by a process other than filtering, in respect of products falling within heading 27.10 only; (EC)]G/RO/39
Page 30
[(m) in respect of fuel oils falling within heading ex 27.10, atmo spheric distillation, on condition that less than 30% of these  products distils,
by volume, including losses, at 300oC by the ASTM D 86 method. (EC)]
[(n) in respect of heavy oils other than gas oils and fuel oils falling within heading ex 27.10 on ly treatment by means of a hig h-frequency
electrical brush-discharge. (EC)]
3. Mixing and blending    Submitted to CRO for decision (Issue No.8 )
(a) [For the purposes of headings 2707and 2710 to 2715, the deliberate and proportionally controlled mixing or blending (includ ing
dispersing) of materials to conform to predetermined specificat ions which results in the production of a good having physical, chemical
characteristics which are relevant to the purposes or uses of the good and are different from the input materials is to be cons idered to be
origin conferring.  (EC) (SG)]
(b) [Goods of headings 27.07 or 27.10 that have been blended to conform to specific predetermined physical specifications, such  as boiling
point range, viscosity, solidification temperature, research or motor octane number, or cetane number, which are different from  the
specifications of  the input materials, are deemed to be goods of the country where the blending occurred, provided that:
(i) In the case of  motor fuels (other than diesel fuels), the g ood has a Research Octane Number (RON) of 6 or more units higher
than that of the blending component that by volume constitutes the single largest blending component obtained from a single
country;  or
(ii) In the case of other goods, not more than 70 percent by volume of the product is composed of blending components originati ng
from a country other than the country where the blending occurred. (US)]
4. [List of simple processes which do not confer orig in:   Submitted to CRO for decision (Issue No.9 )
- cleaning
- decantation
- desalination
- water separation
- filtering- colouring
- marking
- obtaining a sulphur content as a result of mixing products with different sulphur contents
- any combination of these operations. (EC) (NOR) (ARG) (NZ) (JPN) (TH)]G/RO/39
Page 315. Value added rule    Submitted to CRO for decision (Issue No.10 )
[Goods of headings 27.07 or 27.10 that are not wholly the product of one country shall be deemed to originate in the last count ry where the
following occurs:
The CIF value of non-originating materials imported and used in the production does  not exceed 75% of the ex-factory price of the goods.  The
method of calculating foreign content is as follows :
Foreign Content = CIF Value of Non-originating Raw Materials x 100%  <  75%
                                       Ex-Factory Price
where Ex-Factory Price = Total materials cost + Direct labour costs + Overheads costs + Profits. (SG)]
[Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[Weight (CAN)][Weight or volume, as appropriate (US) ][Total value of parts and related processing activity (CH)]G/RO/39
Page 32
CHAPTER 27
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 27  Mineral fuels, mineral oils and products
of their distillation; Bituminous
substances; Mineral waxes
27.01 Coal; briquettes, ovoids and similar
solid fuels manufactured from coal.As indicated at the subheading level. Adopted
Coal, whether or not pulverized, but not
agglomerated:
2701.11 -- Anthracite The country of origin of the goods shall be the
country in which the anthracite of thissubheading is obtained in its natural or
unprocessed state.
2701.12 -- Bituminous coal The country of origin of the goods shall be the
country in which the bituminous coal of this
subheading is obtained in its natural or
unprocessed state.
2701.19 -- Other coal The country of origin of the goods shall be the
country in which the coal of this subheading is
obtained in its natural or unprocessed state.
2701.20 - Briquettes, ovoids and similar solid fuels
manufactured from coalCTSH  Adopted
27.02 Lignite, whether or not agglomerated,
excluding jet.The country of origin of the goods shall be the
country in which the lignite this heading is
obtained in its natural or unprocessed state.Adopted
2702.10 - Lignite, whether or not pulverized, but
not agglomeratedAs indicated at the heading level.
2702.20 - Agglomerated lignite
27.03 Peat (including peat litter), whether or
not agglomerated.The country of origin of the goods shall be the
country in which the peat of this heading is
obtained in its natural or unprocessed state.AdoptedG/RO/39
Page 33HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
 27.04 Coke and semi-coke of coal, of lignite or
of peat, whether or not agglomerated;
retort carbon.CTH Adopted
27.05 Coal gas, water gas, producer gas and
similar gases, other than petroleumgases and other gaseous hydrocarbons.CTH Adopted
27.06 Tar distilled from coal, from lignite or
from peat, and other mineral tars,
whether or not dehydrated or partially
distilled, including reconstituted tars.CTH Adopted
27.07 Oils and other products of the
distillation of high temperature coal tar;
similar products in which the weight of
the aromatic constituents exceeds that of
the non-aromatic constituents.[CTH or Chapter Notes 1, 2, [3(a) or 3(b)], and
4 apply] (NZ) (JPN) (NOR) (TH)
[CTH or Chapter Notes 1, 2, 3(a) and 4 apply]
(EC) (EGY)
[CTH or Chapter Notes 1, 2, 3(b) and 4 apply]
(US)[CTH or Chapter Notes 1, 2, 3(a) and 5 apply]
(SG)Submitted to CRO for
decision
Issues 7 to 10
2707.10 - Benzole As indicated at the heading level.
2707.20 - Toluole
2707.30 - Xylole
2707.40 - Naphthalene
2707.50 - Other aromatic hydrocarbon mixtures of
which 65% or more by volume (including
losses) distils at 250 oC by the ASTM D86
method
2707.60 - Phenols
- Other
2707.91 -- Creosote oils
2707.99 -- OtherG/RO/39
Page 34
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
27.08 Pitch and pitch coke, obtained from coal
tar or from other mineral tarsAs indicated at the subheading level Adopted
2708.10 - Pitch CTH
2708.20 - Pitch coke CTSH
27.09 Petroleum oils and oils obtained from
bituminous minerals crudeAs indicated at the split heading level Adopted
ex 27.09 (a) Petroleum oils, crude The country of origin of the goods shall be the
country in which the crude petroleum oils of
this split heading are obtained in their natural
or unprocessed state
ex 27.09 (b) Other CTH
27.10 Petroleum oils and oils obtained from
bituminous minerals, other than crude;
preparations not elsewhere specified or
included, containing by weight 70 % or
more of petroleum oils or of oils
obtained from bituminous minerals,these oils being the basic constituents of
the preparations.[CTH or Chapter Notes 1, 2, [3(a) or 3(b)], and
4 apply ] (NZ) (JPN) (NOR) (TH)
[CTH or Chapter Notes 1, 2, 3(a) and 4 apply ]
(EC) (EGY)
[CTH or Chapter Notes 1, 2, 3(a) and 5] (SG)
[CTH or  Chapter Notes 1, 2, 3(b), and 4apply] (US)Submitted to CRO for
decision
Issues 7 to 10
27.11 Petroleum gases and other gaseous
hydrocarbons.As indicated at the subheading level.
- Liquefied :
2711.11 -- Natural gas The country of origin of the goods shall be the
country in which the natural gas of this
subheading is obtained in its natural orunprocessed stateAdoptedG/RO/39
Page 35HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2711.12 -- Propane [CTH or Chapter Notes 1, 2, and 4 apply] (US)
[CTH or Chapter Notes 1, 2, 3(a) and 4 apply]
(EC) (NOR) (TH) (EGY)[CTSH, except from subheading 2711.29, or
Chapter Notes 1, 2, 3(a) and 4 apply] (JPN)
(NZ)
[CTSH, except from subheading 2711.29, or
Chapter Notes 1, 2 and 3(a) apply] (SG)[CTSH, except from subheading 2711.21 or
2711.29; or Chapter Notes to be agreed to]
(CAN)Submitted to CRO for
decision
Issues 7 to 10
2711.13 -- Butanes Same as for subheading 2711.12
2711.14 -- Ethylene, propylene, butylene and
butadiene
2711.19 -- Other CTH or Chapter Notes 1, 2, 3(a) and 4 apply]
(EC) (NOR) (TH) (EGY)
[CTH or Chapter Notes 1, 2, and 4 apply] (US)
[CTSH, except from subheading 2711.29, or
Chapter Notes 1, 2, 3(a) and 4 apply] (JPN)
(NZ)
[CTSH, except from subheading 2711.29, or
Chapter Notes 1, 2 and 3(a) apply] (SG)[CTSH, except from subheading 2711.21 or
2711.29; or Chapter Notes to be agreed to]
(CAN)Submitted to CRO for
decision
Issues 7 to 10
-  In gaseous state :
2711.21 -- Natural gas The country of origin of the goods shall be the
country in which the natural gas of this
subheading is obtained in its natural or
unprocessed stateAdoptedG/RO/39
Page 36
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2711.29 --  Other [CTH or Chapter Notes 1, 2, 3(a) and 4 apply]
(EC) (NOR) (TH)
[CTH or Chapter Notes 1, 2 and 4 apply] (US)[CTSH, except from subheading 2711.12 to
2711.21; or Chapter Notes 1, 2, 3(a) and 4
apply] (JPN) (NZ)
[CTSH, except from subheading 2711.12 to
2711.21; or Chapter Notes 1, 2 and 3(a) apply](SG)
[CTSH, except from subheading 2711.11 to
2711.19; or Chapter Notes to be agreed to]
(CAN)Submitted to CRO for
decision
Issues 7 to 10
27.12 Petroleum jelly; paraffin wax, micro-
crystalline petroleum wax, slack wax,
ozokerite, lignite wax, peat wax, othermineral waxes, and similar products
obtained by synthesis or by other
processes, whether or not coloured.[CTH or Chapter Notes 1, 2, 3(a) and 4 apply ]
(EC) (NOR) (TH) (JPN) (NZ)
[CTH or Chapter Notes to be agreed to](CAN)
[CTH or Chapter Notes 1, 2 and 4 apply] (US)
[CTH or Chapter Notes 1, 2 and 3(a) apply]
(SG)Submitted to CRO for
decision
Issues 7 to 10
2712.10 - Petroleum jelly As indicated at the heading level.
2712.20 - Paraffin wax containing by weight less
than 0.75% of oil
2712.90 - Other
27.13 Petroleum coke, petroleum bitumen and
other residues of petroleum oils or of oils
obtained from bituminous minerals.[CTH or Chapter Notes 1, 2, 3(a) and 4 apply ]
(EC) (NOR) (TH) (JPN) (NZ)
[CTH or Chapter Notes 1, 2 and 3(a) apply](SG)
[CTH or Chapter Notes to be agreed to]
(CAN)
 (US)Submitted to CRO for
decision
Issues 7 to 10
-  Petroleum coke : As indicated at the heading levelG/RO/39
Page 37HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
2713.11 -- Not calcined
2713.12 -- Calcined
2713.20 - Petroleum bitumen
2713.90 - Other residues of petroleum oils or of oils
obtained from bituminous minerals
27.14 Bitumen and asphalt, natural;
bituminous or oil shale and tar sands;
asphaltites and asphaltic rocks.The country of origin of the goods shall be the
country in which goods of this heading are
obtained in their natural or unprocessed state.Adopted
2714.10 - Bituminous or oil shale and tar sands As indicated at the heading level.
2714.90 - Other
27.15 Bituminous mixtures based on natural
asphalt, on natural  bitumen, on
petroleum bitumen, on mineral tar or on
mineral tar pitch (for example,
bituminous mastics, cut-backs).[CTH or Chapter Notes 1, 3(a) and 4 apply ]
(EC) (NOR) (TH) (JPN) (NZ)
[CTH or Chapter Notes to be agreed to]
(CAN)
(US)Submitted to CRO for
decision
Issues 7 to 10
27.16 Electrical energy.  (Optional heading) The country of origin of the goods shall be the
country in which the electrical energy of this
heading is generated.AdoptedG/RO/39
Page 38
ISSUES FOR DECISION
CHAPTERS 44-49
ISSUE NO. 1 : PLANING, SANDING, FINGER OR END-JOINTING :  OF WOOD SAWN
LENGTHWISE, SLICED OR PEELED; OF VENEER SHEETS AND OTHER
WOODS SAWN LENGTHWISE, SLICED OR PEELED; OF CONTINUOUSLY
SHAPED WOOD; OF PARTICLE BOARD; OR OF FIBREBOARD
OPTION A1. These operations taken individually result in new products having different commercial uses.
the importance of the operations is indicated by the attention given to them in the explanatory notes tothe harmonized system.
OPTION B
2. These are minimal operations which do not change the character of the woods upon which
they are carried out.  when performed, they are most often part of the milling process, and there islittle economic justification for performing the operations separately.  problems of administration
arise in connection with defining the extent of sanding, planing, joining which would be origin
conferring.  as presented, the proposal is open to the interpretation that, for example, sanding
operations undertaken in one country and subsequently  in another would result in two changes in the
country of origin of the good.  finger-jointing is not undertaken for veneer sheets, particle board orfibreboard.
Relevant HS code numbers:
44.07 -  Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-
jointed, of a thickness exceeding 6mm;
44.08 - Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn
lengthwise, sliced or peeled, whether or not pl aned, sanded or finger-jointed, of a thickness
not exceeding 6mm;
44.09 - Wood (including strips and friezes for parquet flooring, not assembled), continuously shaped
(tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like)along any of its edges or faces, whether or not planed, sanded or finger-jointed;
44.10 - Particle board and similar board of wood or  other ligneous materials, whether or not
agglomerated with resins or other organic binding substances;
44.11 - Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other
organic substances
++++++++++
ISSUE NO. 2 : BEADING OR MOULDING OF: CONTINUOUSLY SHAPED WOOD;
PARTICLE BOARD; FIBREBOARD; PLYWOOD; DENSIFIED WOOD OR
BUILDERS’ JOINERYG/RO/39
Page 39
OPTION A:
3. Beading or moulding give these woods new characteristics which qualify them as new
products having distinct commercial uses and should be considered as substantial transformation of
the input materials.
OPTION B:
4. Beading or moulding of the input materials are minimal operations which do not change their
essential commercial character.  it is not appropriate to treat these operations differently from the
other surface-working which is performed on woods of the relevant headings and which result in nochanges of headings.
Relevant HS code numbers:
44.08 - Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn
lengthwise, sliced or peeled, whether or not pl aned, sanded or finger-jointed, of a thickness
not exceeding 6mm;
44.09 - Wood (including strips and friezes for parquet flooring, not assembled), continuously shaped
(tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like)
along any of its edges or faces, whether or not planed, sanded or finger-jointed;
44.10 - Particle board and similar board of wood or other ligneous materials, whether or not
agglomerated with resins or other organic binding substances;
44.11 - Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other
organic substances;
44.12 - Plywood, veneered panels and similar laminated wood;44.13 - Densified wood, in blocks, plates strips or profile shapes;44.18 - Builders’ joinery and carpentry of wood, incl uding cellular wood panels, assembled parquet
panels, shingles and shakes.
+++++++++++
ISSUE NO. 3 : LAMINATION OR REINFORCEMENT BY THE ADDITION OF LAYERS OF
WOOD, PAPER, METAL OR OTHER MATERIALS, WITHOUT CHANGE OF
TARIFF CLASSIFICATION
OPTION A:
5. Lamination or reinforcement, by adding new properties such as increased tensile strength,
substantially transform the input materials
OPTION B
6. If the lamination or reinforcement have not been sufficient to result in a change in the tariff
classification of the input woods, this indicates no si gnficant change in their characteristics and that
there has not been substantial transformation.G/RO/39
Page 40
Relevant HS code numbers:
44.08 - Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn
lengthwise, sliced or peeled, whether or not pl aned, sanded or finger-jointed, of a thickness
not exceeding 6mm;
44.10 - Particle board and similar board of wood or other ligneous materials, whether or not
agglomerated with resins or other organic binding substances;
44.11 - Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other
organic substances;
44.12 - Plywood, veneered panels and similar laminated wood.
++++++++++
ISSUE NO. 4 : SURFACE-WORKING OF PLYWOOD BY MECHANICAL WORKING OR
SURFACE-COVERING
OPTION A:7. Surface-worked woods are mechanically worked by grooving, perforating or embossing or
are products covered or coated with other materials such as sheets of wood, plastics, paper, fabric,
base metal or paint.  they are different from th e input woods in terms of characteristics such as
appearance and durability.  because the uses of surface-worked woods are determined largely by theirtype of surface, the addition of such surfaces should be considered substantial transformation.  the
following processes are not considered sufficient to confer origin: processes in which the edges of
woods are grooved only in a straight line; proce sses in which one side of the wood is not wholly
covered or decorated; and processes in which the woods are covered by transparent varnishes such as
lacquers.
OPTION B:
8. Mechanical working or surface-covering of plywood does not result in any change in the
character of the good as plywood.  these are decorative or ancillary processes which should not be
considered to result in substantial transformation.
Relevant HS code numbers:
44.12 - Plywood, veneered panels and similar laminated wood.
++++++++++
ISSUE NO. 5 : COATING OF PAPER IN ROLLS OR SHEETS WITH KAOLIN OR OTHER
INORGANIC SUBSTANCES
OPTION A:9. Origin should be conferred for coating with in organic mineral coverings like kaolin as it is to
be conferred for other coating operations.  coat ing with inorganic minerals makes the paper or
paperboard suitable for graphic (printing, writing) uses by creating a brighter finish with improved ink
reception.G/RO/39
Page 41
OPTION B:
10. Coating paper stock with kaolin does not result in substantial transformation.
Relevant HS code numbers:
48.10 - Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic
substances, with or without a binder, and wi th no other coating, whether or not surface-
coloured, surface-decorated or printed, in rolls or sheets.
REFERENCES :Doc. 41.373 (Secretariat’s list of Basket 2 issues for Chapters 44-46)
Doc. 41.374 (Secretariat’s list of Basket 2 issues for Chapters 47-49)
Doc. 41.489 (Secretariat’s working document for Basket 2 examination)
Doc. 40.245, Annexes C/1, C/2, D/1, D/2 (Report of the 4th Session)Doc. 41.438 (Submission by AUS)
Doc. 41.457 (Submission by JPN)
Doc. 41.504 (Submission by SG)
Doc. 41.649 (Submission by US)
++++++++++
ISSUE No. 6 :  ASSEMBLY OF WOODEN PICTURE FRAMES OF HEADING 44.14 OR
PACKING CASES, BOXES, PALLETS, ETC. OF HEADING 44.15 FROM
BOARDS CUT TO LENGTH
OPTION A: Yes
11. The assembly of picture frames of heading 44.14, or of packing cases, pallets, etc. of heading
44.15 from boards cut to size should be considered to result in substantial transformation.  even if thestarting materials are boards cut to length, the assembly generally may be considered complex.  the
starting materials are goods of another heading (generally, 44.09), and the further working and
assembly to produce frames and packing cases results in substantial transformation.  a rule of change
in tariff heading is generally sufficient to express the substantial transformations which take place.
the only exception would be if the change to these tariff classifications from boards cut to length
occurs solely by reason of the application of gir 2(a) of the harmonized system with respect to
collections of boards that are presented as unassembled articles of these headings, and there is noassembly associated with the change of tariff classification.The rule should be (US, CAN, THAI):
♦ CTH
OPTION B: No
12. The assembly of picture frames or packing cases, pallets, etc. from boards cut to size does not
result in substantial transformation of the input boards.  the cutting to appropriate length is the
principal working required to produce these goods, and the further assembly does not substantially
transform the boards.The rule should be (EC, PHI):
♦ CTH, except from lengths of heading 44.09G/RO/39
Page 42
Relevant HS code numbers:
44.14, 44.15
REFERENCES:
42.306
++++++++++
ISSUE No 7 :  ASSEMBLY OF CASKS, BARRELS, VATS TUBS AND OTHER COOPERS’
PRODUCTS FROM PARTS (PRINCIPALLY, STAVES)
OPTION A : Yes
13. The assembly of coopers’ wares from parts classified in the same heading should be
considered to result in substantial transformation.  such assembly of coopers’ goods from parts
(essentially, staves) is more complex than the assembly of frames of heading 44.14, requires more
parts, and results in substantial transformation.
The rule should be (EC, PHI):
♦ CTHS
OPTION B : No
14. While the assembly of cooper’s goods using input woods from outside the heading is
substantial, the change within the heading from parts to assembled goods is not.  this is because these
goods are susceptible to re-use and are frequently shipped disassembled for ease of transport.  it is the
manufacture of the parts which confers origin, and not their subsequent assembly or reassembly.
The rule should be (US, CAN, THAI):
♦ CTH
Relevant HS code numbers:
44.16
REFERENCES:
42.306
ISSUE No. 8 : BLEACHING OR SEMI-BLEACHING OF PULP
OPTION A: Yes
15. Semi-bleaching or bleaching of unbleached pulp are complex chemical processes which
introduce characteristics into the final paper products essential to their intended uses.  for example,
bleaching is undertaken to impart brightness or to prepare the pulp for use in food packaging
applications.  the type or extent of bleaching thus determine the uses to which the pulp may be put and
results in new pulp products.
The rule should be:G/RO/39
Page 43
♦ CTHS or CTSH, depending upon the heading, to reflect the change from  unbleached to bleached
or semi-bleached pulp (US, THAI)
 
♦ Same as above, and also CTSH for subheadings 4703.11, 47.03.19, 47.04.11 and 4704.19 to
recognize the substantial transformation which takes place as a result of the mixing of coniferous
and non-coniferous and bleached and semi-bleached pulps. (CAN)
OPTION B: No16. Semi-bleaching or bleaching do not change the nature of the products as pulp and thus should
not be taken into account in determining whether substantial transformation takes place.
The rule should be (AUS, PHI):
♦ CTH
Relevant HS code numbers:
47.01 through 47.06
++++++++++
ISSUE No. 9 :  PRODUCTION OF CORRUGATED PAPER AND PAPERBOARD USING
OTHER PAPER OR PAPERBOARD OF CHAPTER 48
OPTION A : Yes
17. Substantial transformation takes place as a result of the corrugation of paper or paperboard in
rolls or sheets to produce corrugated paper or paperboard in rolls or sheets. corrugating creates a new
and different paper with specific uses related to its new properties.  for example, kraft paper - widely
used for its tensile strength (resistance to tearing or stretching forces) - is corrugated to produce a
product that is used for its structural strength (resistance to crushing forces).
The rule should be (US, CAN, JPN, THAI):
♦ CTH
OPTION B: No18. The fabrication of corrugated paper and paperboard from paper and paperboard of chapter 48
cannot be considered as a substantial transformation.  even with gluing and layering to produce liner
paper and paperboard there is no change in the essential characteristic of the goods as paper and thereis no substantial transformation.
The rule should be (AUS, PHI, EC):
♦ CTH, except from the headings of Chapter 48
Relevant HS code numbers::
4808.10
++++++++++G/RO/39
Page 44
ISSUE No. 10 : PRODUCING CREPED, CRINK LED, EMBOSSED OR PERFORATED PAPER
OR PAPERBOARD, IN ROLLS, USING PAPER OR PAPERBOARD, IN
ROLLS, OF CHAPTER 48
OPTION A: Yes
19. The crinkling, creping, embossing or perfora ting of paper in rolls results in substantial
transformation.   this results in products having new characteristics and uses and should be treated as
origin conferring.  for example, crinkled or creped papers are used in packaging applications which
require high elasticity.
The rule should be (JPN, THAI):
♦ CTH
OPTION B:  No
20. These operations do not necessarily change the uses of a particular paper or paperboard stock.
they are largely decorative measures and should not confer origin.  no combination of crinkling,creping, embossing or perforating should be considered to result in substantial transformation.
The rule should be (AUS, US, PHI):
♦ CTH, except from the headings of Chapter 48
Relevant HS code numbers:
4808.20, 4808.30, 4808.90
++++++++++
ISSUE No. 11 : PRODUCTION OF PRINTED BOOKS, BROCHURES, LEAFLETS AND
SIMILAR PRINTED MATTER USING PRINTED MATERIALS CLASSIFIED
IN THE SAME HEADING
OPTION A : Yes
21. The fabrication of books from other printed matter classified also in heading 49.01 should be
considered to result in substantial transformation. the other printed matter which would comprise the
materials for the fabrication of books would include: printed sheets comprising the whole or a part of
the complete work and designed for binding; brochures, pamphlets and leaflets; and other textualmatter including collections of printed reproductions of pictures, drawings, etc. suitable for binding.
The rule should be (EC, THAI)
♦ CTH or change within heading 49.01
OPTION B: No22. Substantial transformation does not take place when printed matter of heading 49.01 is bound
to produce other printed matter of heading 49.01.G/RO/39
Page 45
The rule should be (US, AUS, PHI, JPN, CAN):
• CTH
Relevant HS code numbers:
49.01G/RO/39
Page 46
CHAPTER 44
Notes:
1. For the purposes of this Chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly.   (Basket 1)
Those rules which refer to a change of heading or subheading shal l not apply to changes which result solely from the applicatio n of General Rule of
Interpretation 2(a) with respect to collections of parts that are presented as unassembled articles of another heading or subhe ading.  Submitted to CRO
for decision .
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 44 Wood and articles of wood; wood
charcoal
44.01 Fuel wood, in logs, in billets, in twigs, in
faggots or in similar forms; wood inchips or particles; sawdust and wood
waste and scrap, whether or not
agglomerated in logs, briquettes, pellets
or similar forms.As indicated at the subheadings
level
4401.10 - Fuel w ood, in logs, in billets, in twigs,
in faggots or in similar formsCTHAdopted
- Wood in chips or particles :
4401.21 -- Coniferous CTHAdopted
4401.22 -- Non-coniferous CTHAdoptedG/RO/39
Page 47HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
4401.30 - Sawdust and w ood waste and scrap,
whether or not agglomerated in logs,briquettes, pellets or similar formsAs indicated at the split
subheading level
ex4401.30(a) - Agglomerated CTSHSAdopted
ex4401.30(b)  -  Not agglomerated The country of origin of sawdust
and waste and scrap of thissubheading is the country in
which the goods are derived or
collected from manufacturing or
processing operations or from
consumption
44.02Wood charcoal (including shell or nut
charcoal), whether or not agglomerated.As indicated at the split heading
level
ex 44.02(a) - Agglomerated CTHSAdopted
ex 44.02(b) - Non-agglomerated CTHAdopted
44.03 Wood in the rough, whether or not
stripped of bark or sapwood, or roughlysquared.CTHAdoptedG/RO/39
Page 48
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
44.04 Hoopwood; split poles; piles, pickets and
stakes of wood, pointed but not sawnlengthwise; wooden sticks, roughly
trimmed but not turned, bent or
otherwise worked, suitable for the
manufacture of walking-sticks,
umbrellas, tool handles or the like;chipwood and the like.CTHAdopted
44.05 Wood wool; wood flour. CTHAdopted
44.06 Railway or tramway sleepers (cross-ties)
of wood.CTHAdopted
44.07 Wood sawn or chipped lengthwise, sliced
or peeled, whether or not planed, sanded
or finger-jointed, of a thicknessexceeding 6 mm.[CTH]
[As indicated at the split
heading level ]Submitted to CRO
for decision
Issue No. 1
[ex 44.07(a) - planed, sanded, or  finger-jointed or end-
jointed,[CTHS
ex 44.07(b) - other CTH]
44.08 Veneer sheets and sheets for plywood
(whether or not spliced) and other woodsawn lengthwise, sliced or peeled,
whether or not planed, sanded or finger-
jointed, of a thickness not exceeding 6mm.[CTH]
[As indicated at the split
heading level ]Submitted to CRO
for decision
Issue No.1Issue No. 2
Issue No. 3G/RO/39
Page 49HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
[ex 44.08(a)  -planed, sanded, finger-jointed, end-
jointed or reinforced,[CTHS
ex 44.08(b) - other CTH]
44.09 Wood (including strips and friezes for
parquet flooring, not assembled)
continuously shaped (tongued, grooved,rebated, chamfered, V-jointed, beaded,
moulded, rounded or the like) along any
of its edges or faces, whether or notplaned, sanded or finger-jointed.[CTH]
[As indicated at the split
heading level ]Submitted to CRO
for decisionIssue No.1
Issue No. 2
[ex 44.09(a) -  beaded, moulded , planed, sanded or
finger or end-jointed[CTHS
ex 44.09(b) - other CTH]
44.10 Particle board and similar board of
wood or other ligneous materials,whether or not agglomerated with resinsor other organic binding substances.[CTH]
[As indicated at the split
heading level ]Submitted to CRO
for decision
Issue No.1Issue No. 2
Issue No. 3
 ex44.10(a) - planed, sanded, finger or end-jointed,
beaded, moulded, laminated.or
reinforced[CTHS
ex44.10(b) - other CTH]
44.11 Fibreboard of wood or other ligneous
materials, whether or not bonded withresins or other organic substances.[CTH]
[As indicated at the split
heading level ]Submitted to CRO
for decision
Issue No.1
Issue No. 2
Issue No. 3G/RO/39
Page 50
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
[ex 44.11(a) - planed, sanded, finger or end-jointed,
beaded, moulded or laminated.[CTHS
ex 44.11(b) - otherCTH]
44.12 Plywood, veneered panels and similar
laminated wood.[CTH]
[CTH  or
or change within this
heading by surface working]
[As indicated at the split
heading level ]Surface-worked woods mean
that
(1) “Mechanically worked
woods”    which are the
products grooved, embossed or
perforated(2) “Surface-covered
woods” which are the
products covered with
other materials such as
sheet of wood, plastics,paper, fabric or base
metal, or paint.
However, the following
processes which are not
sufficient to confer origin
should be excluded fromsubstantial transformation.
(a) Processes in which the
edges of the woods are only
grooved in a straight line(b) Processes in which
one side of the woods is not
wholly covered or decorated.Submitted to CRO
for decision
Issue N° 1
Issue N° 2Issue N° 3G/RO/39
Page 51HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
(c)Processes in which the
woods are covered bytransparent varnishes such as
lacquers.
[ex 44.12(a)- laminated or reinforced; beadings and
mouldings, including moulded skirting
and other moulded boards.[CTHS
ex 44.12(b)] - other CTH]
44.13 Densified wood, in blocks, plates, strips
or profile shapes.[CTH]
[As indicated at the split
heading level ]Submitted to CRO
for decision
Issue N° 2
[ex 44.13(a) - beadings and mouldings [CTHS
ex 44.13(b) - otherCTH]
44.14 Wooden frames for paintings,
photographs, mirrors or similar objects.[CTH except from lengths of
heading 44.09 (EC)(PHI)]Submitted to CRO
for Decision
Issue N° 6
[CTH (CAN)(US)(THAI)]
44.15 Packing cases, boxes, crates, drums and
similar packings, of wood; cable-drums
of wood; pallets, box pallets and other
load boards, of wood; pallet collars ofwood.[CTH except from boards cut to
size (EC)(PHI) ]Submitted to CRO
for Decision
Issue N° 6
[CTH(US) (CAN)(THAI)]G/RO/39
Page 52
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
44.16 Casks, barrels, vats, tubs and other
coopers' products and parts thereof, ofwood, including staves.[CTH (US)(CAN)(THAI)]
[As indicated at the split
heading level ]Submitted to CRO
for Decision
Issue N° 7
[ex 44.16(a)- Casks, barrels, vats, tubs and other
coopers' productsCTHS (EC)(PHI)
ex 44.16(b) ]- parts CTH (EC)(PHI)]
44.17 Tools, tool bodies , tool handles, broom
or brush bodies and handles, of wood;
boot or shoe lasts and trees, of wood.CTH Adopted
44.18 Builders' joinery and carpentry of wood,
including cellular wood panels,
assembled parquet panels, shingles and
shakes.[CTH]
[as indicated at the split heading
level]Submitted to CRO
for Decision
Issue N° 2
ex 44.18 (a)
ex 44.18 (b)- Beadings and mouldings
- Other[CTHS
CTH]
44.19 Tableware and kitchenware, of wood. CTH Adopted
44.20 Wood marquetry and inlaid wood;
caskets and cases for jewellery or
cutlery, and similar articles, of wood;
statuettes and other ornaments, of wood;
wooden articles of furniture not fallingin Chapter 94.CTH Adopted
44.21 Other articles of wood. CTH AdoptedG/RO/39
Page 53CHAPTER 45
Notes:
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly. (Basket 1)
2. Those rules which refer to change of heading or subheading sha ll not apply to changes which result solely from the applicatio n of General Rule
of Interpretation 2(a) with respect to collections of part that are presented as unassembled articles of another heading or sub heading. Submitted to CRO
for decision .
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 45 Cork and articles of cork
45.01 Natural cork, raw or  simply prepared;
waste cork; crushed, granulated orground cork.CTH Adopted
45.02 Natural cork, debacked or roughly
squared, or in rectangular (including
square) blocks, plates, sheets or strip,(including sharp-edged blanks for corksor stoppers).As indicated at the split heading level Adopted
ex 45.02(a) - with an applied backing added by
lamination or other processCTHS
ex 45.02(b) - other CTH, except from heading 45.01G/RO/39
Page 54
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
45.03 Articles of natural cork. CTH except from heading 45.02 when resulting
from simple cuttingAdopted
45.04 Agglomerated cork (with or without a
binding substance) and articles ofagglomerated cork.As indicated at the split subheading level Adopted
4504.10 - Blocks, plates, sheets and strip; tiles of
any shape; solid cylinders, including
discs:As indicated at the split subheading level
ex4504.10(a)-- With an applied backing added by
lamination or other processCTSHS
ex4504.10(b)-- OtherCTH
4504. 90- OtherAs indicated at the split subheading level
ex 4504.90(a)-- With an applied backing added by
lamination or other processCTSHS except from subheading 4504.10(a)
ex 4504.90(b)-- OtherCTSHG/RO/39
Page 55CHAPTER 46
Notes:
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly. (Basket 1)
2. Those rules which refer to change of heading or subheading sha ll not apply to changes which result solely from the applicatio n of General Rule
of Interpretation 2(a) with respect to collections of part that are presented as unassembled articles of another heading or sub heading. Submitted to CRO
for decision .
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 46 Manufactures of straw, of esparto or of
other plaiting materials; basketware and
wickerwork
46.01 Plaits and similar products of plaiting
materials, whether or not assembled intostrips; plaiting materials, plaits and
similar products of plaiting materials,
bound together in parallel strands or
woven, in sheet form, whether or not
being finished articles (for example, mats,matting, screens).As indicated  at the subheading level Adopted
4601.10 - Plaits and similar products of plaiting
materials, whether or not assembled into
stripsCTH
4601.20 - Mats, matting and screens of vegetable
materialsCTSHG/RO/39
Page 56
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
-O t h e r  :
4601.91 -- Of vegetable materials CTSH
4601.99 -- Other CTSH
46.02 Basketwork, wickerwork and other
articles, made directly to shape from
plaiting materials or made up from goodsof heading No. 46.01; articles of loofah.CTH AdoptedG/RO/39
Page 57CHAPTER 47
Notes:
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly. (Basket 1)
2. Those rules which refer to change of heading or subheading sha ll not apply to changes which result solely from the applicatio n of General Rule
of Interpretation 2(a) with respect to collections of part that are presented as unassembled articles of another heading or sub heading. Submitted to CRO
for decision .
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 47 Pulp of wood or of other fibrous
cellulosic material; recovered (waste and
scrap) paper or paperboard
47.01 Mechanical wood pulp.[CTH (AUS)(PHI)]
[As indicated at the split heading level ]Submitted to CRO for
Decision
Issue N° 8
[ex 47.01(a)
ex 47.01(b)- Unbleached
- Bleached or semi-bleachedCTH
CTHS (US)(CAN)(THAI)]
47.02 Chemical wood pulp, dissolving grades.[CTH (AUS) (PHI)]
[As indicated at the split heading level ]Submitted to CRO for
Decision
Issue N° 8
[ex 47.02(a)
ex 47.02(b)- Unbleached
- Bleached or semi-bleachedCTH
CTHS (US)(CAN)(THAI)]
47.03 Chemical wood pulp, soda or sulphate,
other than dissolving grades.As indicated at the subheading levelG/RO/39
Page 58
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
- Unbleached :
4703.11 -- Coniferous [CTH]
[CTSH (CAN)]Submitted to CRO for
Decision
Issue N° 8
4703.19 -- Non-coniferous [CTH]
[CTSH (CAN)]Submitted to CRO for
Decision
Issue N° 8
- Semi-bleached or bleached :
4703.21 -- Coniferous [CTH (AUS)(PHI)]
[CTSH (US)(CAN)]Submitted to CRO for
Decision
Issue N° 8
4703.29 -- Non-coniferous [CTH (AUS)(PHI)]
[CTSH (US)(CAN)]Submitted to CRO for
Decision
Issue N° 8
47.04 Chemical wood pulp, sulphite, other than
dissolving grades.As indicated at the subheading level
- Unbleached :
4704.11 -- Coniferous [CTH]
[CTSH (CAN)]Submitted to CRO for
Decision
Issue N° 8
4704.19 -- Non-coniferous [CTH]
[CTSH (CAN)]Submitted to CRO for
Decision
Issue N° 8
- Semi-bleached or bleached :G/RO/39
Page 59HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
4704.21 -- Coniferous [CTH (AUS)(PHI)]
[CTSH (US)(CAN)]Submitted to CRO for
Decision
Issue N° 8
4704.29 -- Non-coniferous [CTH (AUS)(PHI)]
[CTSH (US)(CAN)]Submitted to CRO for
Decision
Issue N° 8
47.05Semi-chemical wood pulp. [CTH (AUS)(PHI)]
[As indicated at the split heading level ]Submitted to CRO for
Decision
Issue N° 8
[ex 47.05(a)
ex 47.02(b)- Unbleached
- Bleached or semi-bleachedCTH
CTHS (US)(CAN)(THAI)]
47.06 Pulps of fibres derived from recovered
(waste and scrap) paper or paperboardor of other fibrous cellulosic material.[CTH (AUS)(PHI)]
[As indicated at the split heading level ]Submitted to CRO for
Decision
Issue N° 8
[ex 47.06(a)
ex 47.06(b)- Unbleached
- Bleached or semi-bleached[CTH (AUS)(PHI)]
[As indicated at the split heading level ]
47.07 Recovered (waste and scrap) paper or
paperboard.The country of origin of recovered (waste and
scrap) paper or paperboard is the country in
which the goods are derived or collected from
manufacturing or processing operations or fromconsumptionAdopted
4707.10 - Unbleached kraft paper or paperboard or
corrugated paper or paperboardAs indicated at the  heading levelG/RO/39
Page 60
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
4707.20 - Other paper or paperboard made mainly of
bleached chemical pul p, not coloured in
the mass
4707.30 - Paper or paperboard made mainly of
mechanical pulp (for example,
newspapers, journals and similar printedmatter)
4707.90 - Other, including unsorted waste and scrapG/RO/39
Page 61CHAPTER 48
Notes:
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly. (Basket 1)
2. Those rules which refer to change of heading or subheading sha ll not apply to changes which result solely from the applicatio n of General Rule
of Interpretation 2(a) with respect to collections of part that are presented as unassembled articles of another heading or sub heading. Submitted to CRO
for decision . (Issue No.4) .
3- For headings 48.14 through 48.23, those rules which refer to a ch ange heading or subheading shall not apply to changes which are the result
solely of trimming or cutting to rectangular (including square) shape. Adopted
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 48 Paper and paperboard; articles of
paper pulp, of paper or of paperboard
48.01 Newsprint, in rolls or sheets. CTH Adopted
48.02 Uncoated paper and paperboard, of a
kind used for writing, printing or other
graphic purposes, and punch card
stock and punch tape paper, in rolls or
sheets, other than paper of heading No.
48.01 or 48.03; hand-made paper andpaperboard.CTH AdoptedG/RO/39
Page 62
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
48.03 Toilet or facial tissue stock, towel or
napkin stock and similar paper of akind used for household or sanitary
purposes, cellulose wadding and webs
of cellulose fibres, whether or not
creped, crinkled, embossed,
perforated, surface-coloured, surface-decorated or printed, in rolls or sheets.CTH Adopted
48.04 Uncoated kraft paper and paperboard,
in rolls or sheets, other than that of
heading No. 48.02 or 48.03.CTH Adopted
48.05 Other uncoated paper and
paperboard, in rolls or sheets, notfurther worked or processed than asspecified in Note 2 to this Chapter.CTH Adopted
48.06 Vegetable parchment, greaseproof
papers, tracing papers and glassine
and other glazed transparent ortranslucent papers, in  rolls or sheets.CTH Adopted
48.07 Composite paper and paperboard
(made by sticking flat layers of paper
or paperboard together with an
adhesive), not surface-coated or
impregnated, whether or not internallyreinforced, in rolls or sheets.CTH AdoptedG/RO/39
Page 63HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
48.08 Paper and paperboard, corrugated
(with or without glued flat surfacesheets), creped, crinkled, embossed or
perforated, in rolls or sheets, other
than paper of the kind described inheading No. 48.03.As specified for subheadings.
4808.10 - Corrugated paper and paperboard,
whether or not perforated[CTH (CAN)(JPN)(US)(THAI)]
[CTH, except from headings of Chapter 48
(AUS)(PHI)(EC)]Submitted to CRO for
Decision
Issue N° 9
4808.20 - Sack kraft paper, creped or crinkled,
whether or not embossed or perforated[CTH (JPN)(THAI)]
[CTH, except from headings of Chapter 48
(AUS)(US)(PHI)]Submitted to CRO for
Decision
Issue N° 10
4808.30 - Other kraft paper, creped or crinkled,
whether or not embossed or perforated[CTH (JPN)(THAI)]
[CTH, except from headings of Chapter 48
(AUS)(US)(PHI)]Submitted to CRO for
Decision
Issue N° 10
4808.90 - Other[CTH (JPN)(THAI)]
[CTH, except from headings of Chapter 48
(AUS)(US)(PHI)]Submitted to CRO for
Decision
Issue N° 10
48.09 Carbon paper, self-copy paper and
other copying or transfer papers
(including coated or impregnatedpaper for duplicator stencils or offset
plates), whether or not printed, in rolls
or sheets.CTHAdoptedG/RO/39
Page 64
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
48.10 Paper and paperboard, coated on one
or both sides with kaolin (China clay)or other inorganic substances, with or
without a binder, and with no other
coating, whether or not surface-
coloured, surface-decorated or printed,
in rolls or sheets.[CTH]
[CTH, except from heading 48.02]
[CTH, except from headings of Chapter 48]Submitted to CRO for
Decision
Issue N° 5
48.11 Paper, paperboard, cellulose wadding
and webs of cellulose fibres, coated,
impregnated, covered, surface-
coloured, surface-decorated or printed,in rolls or sheets, other than goods of
the kind described in heading No.
48.03, 48.09 or 48.10.As specified at subheading level Adopted
4811.10 - Tarred, bituminised or asphalted paper
and paperboardCTSH
- Gummed or adhesive paper and
paperboard :
4811.21 -- Self-adhesive CTSH
4811.29 -- Other CTSH
- Paper and paperboard coated,
impregnated or covered with plastics
(excluding adhesives) :
4811.31 -- Bleached, weighing more than 150
g/m²CTSHG/RO/39
Page 65HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
4811.39 -- Other as specified at split subheading level
ex4811.39 (a)
ex4811.39 (b)- ink-jet imaging paper and
paperboardcoated, impregnated or
covered with plastic
- otherCTSHS
CTSH
4811.40 - Paper and paperboard, coated,
impregnated or covered with wax,
paraffin wax, stearin, oil or glycerolCTSH
4811.90 - Other paper, paperboard, cellulose
wadding and webs of cellulose fibresCTSH
48.12 Filter blocks, slabs and plates, of paper
pulp.CTH Adopted
48.13 Cigarette paper, whether or not cut to
size or in the form of booklets or tubes.CTH Adopted
48.14 Wallpaper and similar wall coverings;
window transparencies of paper.CTH Adopted
48.15 Floor coverings on a base of paper or
of paperboard, whether or not cut tosize.CTH AdoptedG/RO/39
Page 66
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
48.16 Carbon paper, self-copy paper and
other copying or transfer papers (otherthan those of heading No. 48.09),
duplicator stencils and offset plates, of
paper, whether or not put up in boxes.CTH, except from heading 48.09. Adopted
48.17 Envelopes, letter cards, plain postcards
and correspondence cards, of paper or
paperboard; boxes, pouches, wallets
and writing compendiums, of paper or
paperboard, containing an assortment
of paper stationery.CTH Adopted
48.18 Toilet paper and similar paper,
cellulose wadding or webs of cellulosefibres, of a kind used for household or
sanitary purposes, in rolls of a width
not exceeding 36 cm, or cut to size or
shape; handkerchiefs, cleansing tissues,
towels, tablecloths, serviettes, napkinsfor babies, tampons, bed sheets and
similar household, sanitary or hospital
articles, articles of apparel and
clothing accessories, of paper pulp,
paper, cellulose wadding or webs ofcellulose fibres.CTHAdoptedG/RO/39
Page 67HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
48.19 Cartons, boxes, cases, bags and other
packing containers, of paper,paperboard, cellulose wadding or webs
of cellulose fibres; box files, letter
trays, and similar articles, of paper or
paperboard of a kind used in offices,
shops or the like.CTH Adopted
48.20 Registers, account books, note books,
order books, receipt books, letter pads,
memorandum pads, diaries and
similar articles, exercise books,blotting-pads, binders (loose-leaf or
other), folders, file covers, manifold
business forms, interleaved carbon sets
and other articles of stationery, of
paper or paperboard; albums forsamples or for collections and bookcovers, of paper or paperboard.CTHAdopted
48.21 Paper or paperboard labels of all
kinds, whether or not printed.CTHAdoptedG/RO/39
Page 68
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
48.22 Bobbins, spools, cops and similar
supports of paper pulp, paper orpaperboard (whether or not perforatedor hardened).CTHAdopted
48.23 Other paper, paperboard, cellulose
wadding and webs of cellulose fibres,cut to size or shape; other articles of
paper pulp, paper, paperboard,
cellulose wadding or webs of cellulosefibres.CTH Adopted
- Gummed or adhesive paper, in strips or
rollsAs specified for heading
4823.11 -- Self-adhesive
4823.19 -- Other
4823.20 - Filter paper and paperboard
4823.40 - Rolls, sheets and dials, printed for self-
recording apparatus
- Other paper and paperboard, of a kind
used for writing, printing or othergraphic purposes :
4823.51 -- Printed, embossed or perforated
4823.59 -- Other
4823.60 - Trays, dishes, plates, cups and the like,
of paper or paperboardG/RO/39
Page 69HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
  4823.70 - Moulded or pressed articles of paper
and pulp
  4823.90 - OtherG/RO/39
Page 70
CHAPTER 49
Notes:
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly. (Basket 1)
2. Those rules which refer to change of heading or subheading sha ll not apply to changes which result solely from the applicatio n of General Rule
of Interpretation 2(a) with respect to collections of part that are presented as unassembled articles of another heading or sub heading. Submitted to CRO
for decision .
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 49 Printed books, newspapers, pictures and
other products of the printing industry;
manuscripts, typescripts and plans
49.01 Printed books, brochures, leaflets and
similar printed matter, whether or not insingle sheets.[CTH (PHI)(US)(JPN)(CAN)(AUS)]
[CTH, or change within the heading
(EC)(THAI)]Submitted to CRO for
Decision
Issue N° 11
49.02 Newspapers, journals and periodicals,
whether or not illustrated or containing
advertising material.CTHAdopted
49.03 Children's picture, drawing or colouring
books.CTH Adopted
49.04 Music, printed or in manuscript, whether
or not bound or illustrated.CTH AdoptedG/RO/39
Page 71HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
49.05 Maps and hydrographic or similar charts
of all kinds, including atlases, wall maps,topographical plans and globes, printed.CTH Adopted
49.06 Plans and drawings for architectural,
engineering, industrial, commercial,
topographical or similar purposes, beingoriginals drawn by hand; hand-written
texts; photographic reproductions on
sensitised paper and carbon copies of theforegoing.CTH Adopted
49.07 Unused postage, revenue or similar
stamps of current or new issue in the
country to which they are destined;stamp-impressed paper; banknotes;
cheque forms; stock, share or bond
certificates and similar documents oftitle.CTH Adopted
49.08 Transfers (decalcomanias). CTH Adopted
49.09 Printed or illustrated postcards; printed
cards bearing personal greetings,
messages or announcements, whether or
not illustrated, with or without envelopesor trimmings.CTHAdopted
49.10 Calendars of any kind, printed, including
calendar blocks.CTH Adopted
49.11 Other printed matter, including printed
pictures and photographs.CTH AdoptedG/RO/39
Page 72
ISSUES FOR DECISION:  CHAPTER 71
ISSUE NO. 1 : PLATING OF SILVER IN SEMI-MANUFACTURED FORMS WITH GOLD
AND PLATINUM; PLATING OF GOLD IN SEMI-MANUFACTURED FORMS
WITH PLATINUM
Option A
1. Plating of silver with gold and platinum by galvanization and plating of gold with platinum by
galvanization are the last substantial transformation of the products obtained.
2. The process used to obtain these products consists of covering the silver with a fine layer of
gold or platinum and the gold with a fine layer of platinum.  the deposit made in this way alters and
strengthens the qualities of both precious metals : the silver is protected against tarnishing, rendering
it more suitable for various uses, especially for tableware and electrical connectors; the strength of thegold is increased and it is used principally in jewellery and watch casings.  the products obtained are
new products insofar as their properties differ from those of the worked products.
3. The rule of origin must therefore be based on a change of split subheading, i.e. change to split
subheadings ex 7106.92 (a) and ex 7108.13 (a) from any other split subheading.
The origin criterion should be : CTSHS (EC,TH)
Option B
4. Gold and platinum plating of silver in semi -manufactured forms and platinum plating of gold
in semi-manufactured forms are not the last substantial transformation of these products.
5. These operations consist of depositing, by galvanization (an electrolytic process), an
extremely fine layer of gold or platinum on a silver or gold base.  the process used is not particularly
complex; the initial product’s intrinsic properties are not altered; the operation does not therefore
result in a new product.
6. The rule of origin must therefore be based on a change of subheading, i.e. change to
subheadings 7106.92 and 7108.13 from any other subheading.
The origin criterion should be : CTSH
Relevant HS codes
7106.92
7108.13
REFERENCE DOCUMENT
Report of the 4th Session (D oc. 40.245, Annexes G/1 and G/2)
++++++++++G/RO/39
Page 73
ISSUE No. 2: WORKING OF DIAMONDS AND PRECIOUS AND SEMI-PRECIOUS 
STONES
(a) Working of industrial diamonds
OPTION A : Yes
7. The working of industrial diamonds from unworked or simply sawn, cleaved or bruted
diamonds is a substantial transformation. unworked industrial diamonds are raw stones which have to
be cut to a desired shape to be used on tools or machine accessories for drilling, cutting diamonds, etc.for which the structure and the shape of the diamonds used are of great importance. operations to give
them a final form for fitting onto tools or machin e accessories changes the characteristics of the
diamonds and defines their uses.
The origin criterion should be : CTSH (EC, HK, IND, EGY, TH)
OPTION B : No
8. The working of industrial diamonds from unworked or simply sawn, cleaved or bruted
diamonds is not a substantial transformation.  operations to give them a final form for fitting onto
tools or machine accessories does not fundamentally alter the diamonds’ characteristics.
The origin criterion should be : The country in which these products are obtained in their natural or
unprocessed state (JPN, CAN, CH, MEX, PHI, US, SEN, AUS, BRA)
Relevant HS codes:
7102.29(b) Working of non-industrial diamonds a nd precious and semi-precious stones
OPTION A : Yes
9. The working of non-industrial diamonds a nd precious and semi-precious stones from
unworked or simply sawn, cleaved or bruted diamonds and stones is a substantial transformation.
uncut diamonds and precious and semi-precious stones are raw stones, the use and commercial
interest of which are determined by their shape and characteristics after working. moreover, working
of stones requires a very specialised knowledge and precision.
10. The process of working diamonds is the following : first, the raw stone is sawn into two parts;
the largest part is bruted and sawn or cut using a laser in order to prepare the diamond. a first facettingis carried out to know the structure of the stone which will determine the way it will be cut. then, large
facettes are created on which new facettes are polished. precious and semi-precious stones undergo
the same type of processing, the structure of these stones being moreover more complex.
11. It should be noted that facetting is not the only process of working stones. stones can be
engraved, drilled, prepared as doublets or triplets, etc.. these processes should also be regarded assubstantial transformation.
12. Lastly, on a technical point of view, it is nearly impossible to determine the origin of the
country of extraction of a stone after working. indeed, most of the impurities have disappeared and the
colour may have changed.
The origin criterion should be : CTSH ( EC, HK, IND, EGY, TH)G/RO/39
Page 74
OPTION B : Yes, provided that
13. Working of non-industrial diamonds and preci ous and semi-precious stones from unworked
or simply sawn, cleaved or bruted diamonds and stones is a substantial transformation, provided that
the goods are cut or ground to final shape and polished.  these operations, significantly alter the
characteristics of the diamonds and stones.
The origin criterion should be : CTSH provided that the goods are cut or ground to final shape and
polished (BRA, US, PHI)
OPTION C : No14. Working of non-industrial diamonds and preci ous and semi-precious stones from unworked
or simply sawn, cleaved or bruted diamonds and stones is not a substantial transformation.  the
operations undertaken do not fundamentally alter the characteristics of the diamonds or stones.
The origin criterion should be : The country in which these goods are obtained in their natural or
unprocessed states (JPN, CAN, CH, MEX, SEN, AUS)
Relevant HS codes:
7102.39, 7103.91, 7103.99
(c) Working of synthetic or reconstructed stones
OPTION A : Yes
15. The working of synthetic or reconstructed stones from unworked or simply sawn or roughly
shaped stones is a substantial transformation.  the considerations regarding natural stones are also
relevant for synthetic and reconstructed stones (see above).
The origin criterion should be : CTSH (EC, EGY, HK, TH)
OPTION B : Yes, provided that16. Working of synthetic or reconstructed stones from unworked or simply sawn or roughly
shaped stones is a substantial transformation provided that the goods are cut or ground to final shape
and polished.  these operations, significantly alter the characteristics of the stones.
The origin criterion should be : CTSH provided that the goods are cut or ground to final shape and
polished (BRA, US, PHI)
OPTION C : No
17. Working of synthetic or reconstructed stones from unworked or simply sawn or roughly
shaped stones is not a substantial transformation. the operations do not fundamentally alter the
characteristics of the stones.
The origin criterion should be : The country in which these goods are obtained in their unworked state
(JPN, CAN, CH, MEX, SEN, AUS)
Relevant HS codes:
7104.90G/RO/39
Page 75
ISSUE No. 3 : MANUFACTURE OF ARTICLES OF JEWELLERY, GOLDSMITH'S WARES
AND OTHER ARTICLES OF PRECIOUS METAL, OR OF METAL CLAD WITH
PRECIOUS METAL FROM PARTS
OPTION A : Yes18. The manufacture of articles of jewellery, goldsmith's wares and other articles of precious
metal or of metal clad with precious metal from parts is a substantial transformation.
The origin criterion should be : CTHS (US, HK, JPN, MEX, CH, CAN)
OPTION B : Yes, provided
19. The manufacture of jewellery, articles of goldsmith’s wares, and other articles of precious
metal or of metal clad with precious metal from parts is a substantial transformation provided the
change is not the result of solely gluing, setting or mounting (AUS)
The origin criterion should be : CTHS, provided the change is not the result of solely gluing, setting
or mounting (AUS)
OPTION C : No
20. The manufacture of jewellery, articles of goldsmith's wares, and other articles of precious
metal or of metal clad with precious metal from parts is not a substantial transformation.
The origin criterion should be : CTH (EC)
Relevant HS codes:
ex71.13(a), ex71.14(a), ex71.15(a)
++++++++
ISSUE No. 4 : MANUFACTURE OF ARTICLES OF NATURAL OR CULTURED PEARLS,
PRECIOUS AND SEMI-PRECIOUS STONES, SYNTHETIC OR
RECONSTRUCTED, FROM PEARLS OR STONES
OPTION A : Yes21. The manufacture of articles of natural or cultured pearls, precious and semi-precious stones,
synthetic or reconstructed, from pearls or stones is a substantial transformation.
The origin criterion should be : CTH (US, CH, JPN, TH)
OPTION B : Yes, provided that22. The manufacture of articles of natural or cultured pearls, precious and semi-precious stones,
synthetic or reconstructed, from pearls or stones is a substantial transformation provided that it is not
limited to permanent stringing, of the pearls or stones.
The origin criterion should be : CTH, except from heading 71.01 to 71.04 when the change is only the
result of permanent stringing, of the pearls or stones (AUS, CAN, HK, MEX)G/RO/39
Page 76
OPTION C : No
23. The manufacture of articles of natural or cultured pearls, precious and semi-precious stones,
synthetic or reconstructed, from pearls or stones is not a substantial transformation.
The origin criterion should be : CTH, except from headings 71.01 through 71.04 (EC)
Relevant HS codes:
71.16G/RO/39
Page 77CHAPTER 71
Notes:
[For the purpose of this Chapter, whenever finished goods are produced from blanks or other unfinished forms classified in the same heading or
subheading as the finished goods, they shall originate in the country in which the goods were finished, provided that:
(a) In their imported prefinished condition, the blanks or unfinished forms were not capable of being soled in their condition a s imported or of
functioning  for their ultimate use and have not been advanced beyond cleaning or working to remove flash, sprues, burrs or sim ilar excess material, and
(b) The blanks or unfinished goods are configured to final shape by significant removal of material (other than by edge-working process)].
Submitted to CRO for decision (Issue No. 5) .
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
Chapter 71 Natural or cultured pearls, precious or
semi-precious stones, precious metals,
metals clad with precious metal, and
articles thereof; imitation jewellery;
coin
71.01 Pearls, natural or cultured, whether or
not worked or graded but not strung,
mounted or set; pearls, natural or
cultured, temporarily strung forconvenience of transport.The country of origin  of the pearl of this
heading is the country where the cultured pearl
was cultured or the mollusc containing natural
pearl was gathered.Adopted
71.02 Diamonds, whether or not worked, but
not mounted or set.As indicated at subheading level
7102.10 - Unsorted The origin of the goods shall be the country in
which the goods of this subheading are obtained
in their natural or unprocessed stateAdopted
- Industrial :G/RO/39
Page 78
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
7102.21 -- Unworked or simply sawn, cleaved or
brutedThe origin of the goods shall be the country in
which the goods of this subheading are obtained
in their natural or unprocessed stateAdopted
7102.29 -- Other [CTSH (EC) (EGY)(HK) (IND)(TH) ] Referred to CRO for decision
Issue 2 (a)
[The origin of the goods shall be the country inwhich the goods of this subheading are obtainedin their natural or unprocessed state (JPN)
(CAN) (CH) (MEX) (PHI) (SEN)(US) (BRA)
(AUS) ]
- Non-industrial :
7102.31 -- Unworked or simply sawn, cleaved or
brutedThe origin of the goods shall be the country in
which the goods of this subheading are obtained
in their natural or unprocessed stateAdopted
7102.39 -- Other [CTSH (EC) (EGY)(HK) (IND) (TH) ] Referred to CRO for decision
Issue 2 (b)
[CTSH  provided the goods are cut or ground to
final shape and polished (PHI,US, BRA) ]
[The origin of the goods shall be the country in
which the goods of this subheading are obtainedin their natural or unprocessed state (JPN)
(CAN) (CH) (MEX) (SEN) (AUS) ]G/RO/39
Page 79HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
71.03 Precious stones (other than diamonds)
and semi-precious stones, whether or
not worked or graded but not strung,mounted or set; ungraded precious
stones (other than diamonds) and semi-
precious stones, temporarily strung for
convenience of transport.See subheadings
7103.10 - Unworked or simply sawn or roughly
shapedThe origin of the goods shall be the country in
which the goods of this subheading are obtained
in their natural or unprocessed stateAdopted
- Otherwise worked :
7103.91 -- Rubies, sapphires and emeralds [CTSH  (HK) (EC )(EGY) (IND)(TH)] Referred to CRO for decision
Issue 2 (b)
[CTSH provided the goods are cut or ground to
final shape and polished (PHI) (US) (BRA)]
[The origin of the goods shall be the country in
which the goods of this subheading are
obtained in their natural or unprocessedstate (JPN) (CAN) (CH) (MEX) (SEN)
(AUS)]
7103.99 -- Other [CTSH  (HK) (EC) (EGY) (IND)(TH)]
[ CTSH provided the goods are cut or ground to
final shape and polished (PHI) (US) (BRA)]Referred to CRO for decision
Issue 2 (b)
[The origin of the goods shall be the country in
which the goods of this subheading are
obtained in their natural or unprocessed
state (JPN) (CAN) (CH) (MEX) (SEN)(AUS)]G/RO/39
Page 80
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
71.04 Synthetic or reconstructed precious or
semi-precious stones, whether or not
worked or graded but not strung,mounted or set; ungraded synthetic or
reconstructed precious or semi-precious
stones, temporarily strung for
convenience of transport.See subheadings
7104.10 - Piezo-electric quartz CTH Adopted
7104.20 - Other, unworked or simply sawn or
roughly shapedThe origin of the goods shall be the country in
which the goods of this subheading are obtained
in their unworked stateAdopted
7104.90 - Other [CTSH  (EC) (EGY) (HK)(TH)] Referred to CRO for decision
Issue 2 (c)
[CTSH provided the goods are cut or ground to
final shape and polished (PHI) (US)
(BRA) ]
[The origin of the goods shall be the country in
which the goods of this subheading are
obtained in their unworked state (JPN)
(CAN) (CH) (MEX) (SEN)]
71.05 Dust and powder of natural or synthetic
precious or semi-precious stones.CTH Adopted
71.06 Silver (including si lver plated with gold
or platinum), unwrought or in semi-
manufactured forms, or in powderform.See subheadings
7106.10 - Powder See split subheading
ex7106.10 (a) Flakes classified with powder1CTSHS Adopted
                                                     
1 The HS classifies flakes with powder of subheading 7106.10 when 90 % or more by weight passes through a sieve having a mesh ap erture of 0.5 mmG/RO/39
Page 81HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
ex7106.10 (b) Powder CTSH Adopted
-O t h e r
7106.91 --Unwrought: See split subheading
ex7106.91 (a) Refined CTSHS or
Change within this sp lit subheading resulting
from purification by electrolytic, thermal orchemical separation of precious metal
ex7106.91 (b) Alloyed CTSHS Adopted
ex7106.91 (c)  Other CTH or
The origin of the goods shall be the country in
which the materials of this split subheading are
obtained in their natural or unprocessed stateAdopted
7106.92 --Semi-manufactured: See split subheadings
ex7106.92 (a) Gold or platinum plated [CTSHS (EC) (TH)]
[CTSH]Submitted to CRO for
decisionIssue 1
ex7106.92 (b) Other CTSH Adopted
71.07 Base metals clad with silver, not further
worked than semi-manufactured.See split heading
ex 71.07 (a) Semi-manufactured forms CTHS Adopted
ex 71.07 (b) Other CTH Adopted
71.08 Gold (including  gold plated with
platinum) unwrought or in semi-
manufactured forms, or in powder
form.See subheadings
- Non-monetaryG/RO/39
Page 82
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
7108.11 -- Powder See split subheading
ex7108.11 (a) Flakes classified with powder2CTSHS Adopted
ex7108.11 (b) Powder CTSH Adopted
7108.12 -- Other unwrought forms See split subheading
ex 7108.12(a) Refined CTSHS or
Change within this spli t subheading  resulting
from purification by electrolytic, thermal or
chemical separation of precious metalAdopted
ex7108.12 (b) Alloyed CTSHS Adopted
ex7108.12 (c) Other CTH or
The origin of the goods shall be the country in
which the materials of this split subheading are
obtained in their natural or unprocessed stateAdopted
7108.13 -- Other semi-manufactured forms See split subheading
ex7108.13 (a) Plated with platinum [CTSHS]
[CTSH]Submitted to CRO for
decision
Issue 1
ex7108.13 (b) Other CTSH Adopted
7108.20 - Monetary See split subheading
ex7108.20 (a) Refined CTSHS or
Change within this sp lit subheading resulting
from purification by electrolytic, thermal or
chemical separation of precious metalAdopted
ex7108.20 (b) Alloyed CTSHS Adopted
ex7108.20 (c) Other CTSH Adopted
                                                     
2 The HS classifies flakes with powder of subheading 7108.11 when 90 % or more by weight passes through a sieve having a mesh ap erture of 0.5 mmG/RO/39
Page 83HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
71.09 Base metals or silver, clad with gold, not
further worked than semi-
manufactured.See split heading
ex 71.09 (a) Semi-manufactured forms CTHS Adopted
ex 71.09 (b) Other CTH Adopted
71.10 Platinum, unwrought or in semi-
manufactured forms, or in powder
form.See split heading
ex 71.10 (a) Flakes classified with powder3CTHS Adopted
ex 71.10 (b) Powder CTHS Adopted
ex 71.10 (c) Unwrought forms, refined CTHS or
Change within this spli t heading resulting from
purification by electrolytic, thermal or chemical
separation of precious metalAdopted
ex 71.10 (d) Unwrought forms, alloyed CTHS Adopted
ex 71.10 (e) Other unwrought forms CTH or
The origin of the goods shall be the country in
which the material of this split heading areobtained in their natural or unprocessed stateAdopted
ex 71.10 (f) Other CTHS Adopted
71.11 Base metals, silver or gold, clad with
platinum, not further worked than
semi-manufactured.See split heading
ex 71.11 (a) Semi-manufactured forms CTHS Adopted
ex 71.11 (b) Other CTH Adopted
                                                     
3 The HS classifies flakes with powder of heading 71.10 when 90 % or more by weight passes through a sieve having a mesh apertur e of 0.5 mmG/RO/39
Page 84
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
71.12 Waste and scrap of precious metal or of
metal clad with precious metal; other
waste and scrap containing preciousmetal or precious metal compounds, of
a kind used principally for the recovery
of precious metal.The origin of the goods shall be the country in
which the waste and scrap of this heading are
derived from manufacturing or processingoperations or from consumptionAdopted
71.13 Articles of jewellery and parts thereof,
of precious metal or of metal clad with
precious metal.See split heading
ex 71.13 (a) - Articles of jewellery [CTHS  (US) (HK) (CAN) (JPN) (MEX) (CH)] Referred to CRO for decision
Issue 3
[CTHS, provided the change is not solely the
result of gluing, setting or mounting
(AUS)]
[CTH (EC)]
ex 71.13 (b) - Parts CTH Adopted
- Of precious metal whether or not plated
or clad with precious metal :See split headings
7113.11 -- Of silver, whether or not plated or clad
with other precious metal
7113.19 -- Of other precious metal, whether or not
plated or clad with precious metal
7113.20 - Of base metal clad with  precious metal
71.14 Articles of goldsmiths' or silversmiths'
wares and parts thereof, of precious
metal or of metal clad with precious
metal.See split heading
ex 71.14 (a) - Articles of goldsmiths’wares [CTHS (US) (HK) (CAN) (JPN) (MEX)(CH)] Referred to CRO for decision
Issue 3G/RO/39
Page 85HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
[CTHS, provided the change is not solely the
result of gluing, setting or mounting (AUS)]
[CTH (EC)]
ex 71.14 (b) - Parts CTH Adopted
- Of precious metal whether or not plated
or clad with precious metalSee split headings
7114.11 - Of silver, whether or not plated or clad
with other precious metal
7114.19 -- Of other precious metal, whether or not
plated or clad with precious metal
7114.20 - Of base metal clad with precious metal
71.15 Other articles of precious metal or of
metal clad with precious metal.See split heading
ex 71.15 (a) - Articles of jewellery [CTHS (US) (HK) (CAN) (JPN) (MEX)(CH)] Referred to CRO for decision
Issue 3
[CTHS, provided the change is not solely the
result of gluing, setting or mounting  (AUS)
[CTH (EC)]
ex 71.15 (b) - Parts CTH Adopted
7115.10 - Catalysts in the form of wire cloth or
grill, of platinumSee split heading
7115.90 - Other
71.16 Articles of natural or cultured pearls,
precious or semi-precious stones
(natural, synthetic or reconstructed).[CTH (US) (CH) (JPN) (TH)]
[ CTH, except from headings 71.01 through
71.04 when the change is only the result of
permanent stringing, (CAN) (HK) (MEX) ]Referred to CRO for decision
Issue  4
[ CTH, except from headings 71.01 through
71.04 (EC)  (AUS) ]
7116.10 - Of natural or cultured pearls See headingG/RO/39
Page 86
HS Code
NumberDescription of Goods Origin Criteria Notes Comments
AB C D E
7116.20 - Of precious or semi-precious stones
(natural, synthetic or reconstructed)
71.17 Imitation jewellery. CTH Adopted
71.18 Coin. CTH Adopted
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