. /.   WORLD TRADE  
ORGANIZATION  G/RO/W/114 
13 March 2008 
 (08-1136) 
Committee on Rules of Origin Original:   English 
  
 
CONSOLIDATED TEXT OF NON-PREFERENTIAL RULES OF ORIGIN 
 
Harmonization Work Programme
 
 
Communication from Korea 
 
  The following communication, dated 11 Marc h 2008, has been received from the delegation 
of Korea.  
_______________ 
 
  
I. POSITION ON TECHNICAL ISSUES 
 In connection with  the outstanding technical issues for M achinery of Chapters from 84 to 90, 
Korea is willing to accept the chair’s recommendati ons with the following reservations concerning 
Chapter 85. 
 
A. C
HAPTER 85 
1. 85.41: Diodes, transistors and simila r semiconductor devices; photosensitive 
semiconductor devices, including photovoltaic  cells whether or not assembled in 
modules or made up into panels; light emitting diodes; mounted piezo-electric crystals. 
 In connection with the above mentioned head ing, Korea remains of the position that the 
country of origin for products of this heading sh all be the country of “final assembly” instead of 
“diffusion.”  It is due to the fact that majority of the value-adding activities (approximately 80%) for 
products under the heading 85.41 occur from assembly .  This matter has already been agreed upon at 
the WSC (World Semiconductor Council).  In this regard the Primary Rule for the heading 85.41 
should be as follows:    
 
The country of origin of a good of this heading shall be the country of diffusion  final 
assembly  
2. 85.42:  Electronic integrated circuits and micro-assemblies. 
 In relation with the above mentioned head ing and subheading thereof, Korea holds the 
following position: 
 
 G/RO/W/114 
Page 2  
 
  HS Code 
Number Description of Goods Korea’s Position on Primary Rules 
8542.12 Monolithic digital integrated 
circuits: Cards integrated circuit 
(“smart” cards) The Country of Origin of a good of 
this subheading shall be the country of 
assembly 
8542.30 Other monolithic integrated circuits The Country of Origin of a good of 
this subheading shall be the country of diffusion 
8542.40 Hybrid integrated circuits The Country of Origin of a good of 
this subheading shall be the country of 
assembly 
8542.50 Electronic micro-assemblies The Country of Origin of a good of 
this subheading shall be the country of 
assembly 
8542.90 Parts The Country of Origin of a good of 
this subheading shall be the country of assembly 
 
- For the products under heading 85.42 and subheading thereto, the country of origin 
for Monolithic Integrated Circuits shall be the country of diffusion regardless of the 
type of product nor whether it has been mounted or unmounted.  In the case of Monolithic Integrated Circuits, the operation of diffusion is the most important process in determining the distinctive quality of the product (approximately 70% of value adding activities are conducted in the diffusion operation).  
- However, in the case of Hybrid Integrated Circuits, MCP and so on, the country of 
origin for each chips, which comprises a part  to the product thereto, could be various 
similar to the case in memory modules.  In this case, diffusion cannot be used for determining the country of origin and neither  can the value added rule be applied due 
to problems such as opening the cost of  product arising from value added rule 
application.   
- In such context, the country of origin fo r Hybrid Integrated Circuits, MCP, micro 
assemblies should be the country of final assembly. 
II. COMMENTS ON STRUCTURAL AND EDITORIAL ISSUES 
 The following is simply for the purpose of  editorial improvement. Korea will therefore 
withdraw this comment, in case of any inconsistency with its other substantive positions stipulated on 
technical issues. 
 
 
A. CHAPTER 85 
1. 85.06 : Primary cells and primary batteries 
 In light of the fact that split subheadings do not exist under HS Code No. 85.06, the Primary 
Rule for 85.06 of the consolidated text (G/RO/W/111) should be corrected as follows:  
 
As specified for split  subheading  
 
__________