WORLD TRADE  
ORGANIZATION  G/RO/W/132 
13 October 2009 
 (09-4974) 
Committee on Rules of Origin Original:   English 
  
 
KOREA’S OPINION ON THE PRODUCT-SPECIFIC RULES OF ORIGIN 
 
  The following communication, dated 12 October 2009, is being circulated at the request of the Delegation of the Republic of Korea. 
 
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Split Heading 03.04(b)
 
 
 As fish fillet(or meat) is not a substantial tr ansformation from captured fish(or meat), Korea is 
acceptable of wholly obtained criterion in the consolidated text.  
Split Heading 03.05(a)
 
  The processes of being dried and heavy salted are totally different in that drying is a process 
not to involve substantial transformation in fish  but heavy salting does by fermentation.  Korea 
suggests splitting fish dried and heavy salted of split heading 03.05(a) by creating another split 
heading, and applying wholly obtained criterion for dried fish and CTHS criterion for heavy salted fish.  
 
Split Heading 03.05(b)
 
 
 The process of being smoked does not imply su bstantial change in fish.  Korea suggests 
changing the criterion to wholly obtained.   Split Headings of 03.05(e), 03.06(d), 03.07(d)
 
 
 Korea is the opinion of simple and minimal process should be disregarded when determining rules of origin.  We accept the criterion recommended on the chairman’s text.  Split Headings of 03.06(a), 03.07(a)
 
  
 Drying is not a substantial process to transfor m materials.  Korea would like suggest changing 
the criterion of split headings of 03.06(a) and 03.07(a) to wholly obtained as the split headings of 03.05(e), 03.06(d), 03.07(d). 
 
Headings of 16.04, 16.05
 
 
 Prepared or preserved caviar and crustaceans, molluscs, etc., are manufactured from high-degree of processing.  Korea is acceptable of the chairman’s opinion of CTH.  G/RO/W/132 
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  Heading 21.01
 
 
 Extracts, essences, concentrates and preparations of coffee or tea are made by mixing various products, extracts, and additives and heating those materials.  In the process of mixing, acidity, 
sweetness, colours, turbidity, and viscosity are main factors to identify each product and quality, 
while those features are depending on the mixing process.  We believe those mixing process is 
regarded as substantial transformation so as to apply CTSHS criterion for this heading. 
 
Heading 22.08
 
 
 The proposal adopts change in tariff heading (CTH) criterion for both the refinement process 
for fermented alcohol for the manufacture of li quors and the distillation process for the manufacture 
of Soju, which refers to the Korea’s traditional al coholic beverage produced in Korea.  But diluted 
Soju made of imported spirits(HS22.07) is not subjec t to CTH criterion, and therefore the origin of 
diluted Soju is not accepted under the proposal.  
 
 Our opinion is to merge split headings of e x22.08(a) and ex22.08(b) into one (22.08) by 
removing ‘except from heading 22.07’ in ex22.08(a) so  as to apply CTH to diluted Soju; or adding 
another split heading of ex22.08(c) (Soju, Schoju or Baiju) for Sojuis also acceptable for applying 
CTH according to the heading.  
 Soju is a distilled beverage native to Kor ea, similar to Tequila (Mexico), Rum (Latin 
America), Vodka (Russia) and Gin (the Netherlands ).  It is unreasonable that Korea cannot be 
qualified as the country of origin of Soju even t hough it is one of the trad itional alcoholic beverages 
of Korea.  In addition, Soju has its unique fla vor and fragrance which cannot be reproduced just by 
diluting liquors.  Instead, various kinds of Soju can be made based on the composition of different 
ingredients.  Therefore, it should be regarded that  the last substantial transformation takes place in 
Korea.  We will submit the explanation of the pr ocess to make Soju for the secretariat’s better 
understanding if necessary.    Korea also would like to remind that inserting subheading of 2208.90(c) in HS has been already agreed for being subject to  CTH criterion at the meeting of CRO in June 2007.  We request 
the secretariat the reason why it is di sappeared from the chair’s proposal. 
 
Chapter 61 to 62
 
 
 Once the materials of Chapter 50 to 60 are manuf actured to the materials of Chapter 61 to 62 
by the process of cutting and sewing fabrics, the c ountry where change of chapter is occurred should 
be considered as origin conferring.  Korea sugg ests deleting split chapter and apply CC criterion for 
overall chapters of 61 and 62.  
Chapter 64
 
  For the headings of 64.01 to 64.05, Korea suggests deleting the expression of “except from 
split heading ex64.06(a)” and apply CTH criterion(or CTH; or 35% value added rule).  Given that 
footwear are manufactured largely depending on global sourcing of parts of footwear including 
ex64.06(a), and the portion of parts of footwear is not excessive of 50%, manufacturing shoes from 
parts of footwear including ex64.06(a) creates considerable value added being regarded as a 
substantial transformation. 
 G/RO/W/132 
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  Split heading ex84.73(b), heading 85.41  
 
 Korea understands that [assembly] has been already agreed as the criterion in determining 
rules of origin for split heading ex84.73(b) a nd heading 85.41 at the consultation of CRO in 
June 2007.  Furthermore, memory modules of ex84.73( b) consist of eight integrated circuits which 
might have different origin of countries respectably.  Korea suggests that a country of final 
assembling should be considered the country of origin  as primary rule, and, additionally, the country 
of origin will be the country of origin of the inte grated circuits as subsidiary rule.  We also should 
take into account that most of the value added, around 70% to 80% of HS85.41 is produced from the 
process of assembly. 
 
Heading 85.42  
 
 Korea is the opinion of that monolithic integrat ed circuits of HS85.42 should be considered as 
origin conferring according to the diffusion process as the most of value added are created from 
diffusion.  Other products except monolithic integr ated circuits will be determined by assembly 
process.   
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