WORLD TRADE  
ORGANIZATION  G/RO/45/Add.16/Rev.3 
8 March 2007 
 (07-0963) 
Committee on Rules of Origin  
  
 
INTEGRATED NEGOTIATING TEXT FOR THE 
HARMONIZATION WORK PROGRAMME 
 
CHAPTER 91 (WATCHES AND CLOCKS) 
 
Note by the Secretariat
 
 
Revision  
 
 
1. At its meeting on 10 May 1996, the Committee on Rules of Origin (CRO) decided to establish 
an Integrated Negotiating Text (INT) for the Ha rmonization Work Programme.  The first INT was 
circulated in document G/RO/W/13 (24 Ma y 1996), and had been periodically updated 
(G/RO/W/13/Rev.1-3, G/RO/W/13/Rev. 3/Add.1 and 2).  A further consolidated INT was circulated in 
document G/RO/41(3 September 1999), and has also  been periodically updated (JOB(99)/5869, 
JOB(99)/7617, JOB(00)/1573, JOB(00)/3230 , JOB(00) /5207 and JOB(00)/7194). 
 
2. The attached document is the latest update of  the negotiating text for Chapter 91 and reflects 
the progress made by the CRO in April 2002.  G/RO/45/Add.16/Rev.3 
Page 2  
 
  ISSUES FOR DECISION:  CHAPTER 91 
 ISSUE FOR DECISION NO. 1 :  1.  Is the country of origin of a finished watch or clock the country of final assembly or the 
country of origin of the movement used in its production? 
Differing views presented in the relevant Technical Committee discussions 
 OPTION A:  a rule of origin based on the orig in of the movement for the following reasons: 
 
2.  The essence of a watch, or clock, is a device which indicates the time or measures the 
intervals of time (see explanatory notes under head ing 91.02 (and 91.03)).  A movement is defined in 
the HS chapter notes as a device capable of determini ng intervals of time (see Note 3 to Chapter 91).  
There is no difference in the essential character between a watch and a movement and it is the movement which imparts the essential character of a watch. 
 In the manufacture of a watch or clock, the assembly of the movement is considered the last 
substantial transformation because at the stage of completion of the movement, the essential character 
of the watch - time-telling - is already fixed.     The final assembly from movement to watc h does not substantially  change the essential 
character of time-telling and cannot amount to substantial transformation. 
 
 Because the essential character and quality of a watch or a clock is determined by the movement, the origin of the movement is mo st important from a commercial point of view. 
 OPTION B:  a rule of origin based on the assembly of the watch or clock, for the following reasons: 
 
3.  The structure of the HS reflects that movements and watches are essentially different 
commercial goods. 
 Various finished goods can be obtained from the same movement by final assembly. 
  While the movement is important, timekeepi ng is a minimum characteristic.  The movement 
does not represent time and is invisible after assembly. 
  It is the change from components to a watch wh ich is the last substantial transformation in 
watch manufacture.  The accuracy, durability and life span of a watch are determined and guaranteed 
by the final assembly. 
 
 Some Members are of the opinion that testi ng and adjustment, which constitute an essential 
part of assembly, are also of particular impor tance because they determine the above-mentioned 
quality of a watch.  Relevant HS code numbers and descriptions 
 
4.  91.01 - Wrist-watches, pocket-watches and other watches, including stop-watches, w
    with case of precious metal or of metal clad with precious metal; 
 91.02 - Wrist-watches, pocket-watches and other watches, including stop-watches, 
other than those of heading 91.01; 
  G/RO/45/Add.16/Rev.3 
 Page 3 
 
 
   91.03 -  Clocks with watch movements,  excluding clocks of heading 91.04; 
 91.04 -  Instrument panel clocks and clocks  of a similar type for vehicles, aircraft, 
spacecraft or vessels; 
 91.05 -  Other clocks;  91.06 -  Time of day recording apparatus and apparatus for measuring, recording or 
otherwise indicating intervals of time, w ith clock or watch movement or with 
synchronous motor (for example, time-registers, time-recorders); 
 91.07 -  Time switches with clock or wa tch movement or with synchronous motor. 
 ISSUE FOR DECISION NO. 2
 
 
5.  What is the appropriate description in ex -91.10(b) of complete movements, partly assembled 
and of incomplete movements?   
 
Differing view s presented in the relevant Technical Committee discussions  
 
OPTION A:  
 6.
  -  movements of ex -91.10(b) must contain at least two of the key components on a 
common support.  The proponents consider that the specification of at least two of these components 
is sufficient to take up any one of the three typ es of movement: mechanical; analog electronic; or 
digital electronic.   
OPTION B:  
 7.
  -  all of the key components, as appropriate, must be present.  This formulation is 
intended to provide a more clear deline ation between the types of movements and components.   
Relevant HS code number and description  
 8.
       91.10  - Complete watch or clock movements, unassembled or partly assembled 
(movement sets); incomplete watch or clock movements, assembled; rough 
watch or  clock movements.  
ISSUE FOR DECISION NO. 3  
 
9.  Are changes to complete and assembled movement s of headings 91.08 or 91.09 from partly 
assembled complete movements or incomplete movements of ex -91.10(b), or from other movements 
of ex -91.10(c), substantial tra nsformations?  
Differing views presented in the relevant Technical Committee discussions  
 
OPTION A:  
 10.
  -  change to these headings from any other h eadings, that is, from 91.10 or 91.14, is 
considered substantial transformation by reason of the assembly oper ations involved.   
OPTION B:  
 
11.  -  change to these headings from any othe r headings, except that change from 
ex-91.10(b) should be excluded because such goods have already acquired the character of 
movements prior to final assembly and finishing.   G/RO/45/Add.16/Rev.3 
Page 4  
 
  OPTION 
C:  
 12.
  -  changes from ex -91.10(c) should be excluded as well as changes from ex -91.10(b) 
because goods of ex -91.10(c) have already undergone some amount of assembly which means that a 
change to complete and assembled good s is not substantial transformation .  
OPTION D:  
 13.
  -  change from any other heading, provided that all of the following components, as 
appropriate, are assembled on a common support:  tim e reference device, device for converting the 
time reference for the purpose of display, time setting mec hanism or opto -electronic display.  
Relevant HS code numbers and descriptions  
 14.
  91.08  - Watch movements, complete and assembled;  
 91.09  - Clock movements, complete and assembled.  
 
ISSUE FOR DECISION NO. 4  
 15.
  Are changes to finished watch or clock cases from case parts, or to watch or clock cases from 
case blanks, substantial transformation?   
Differing views presented in the relevant Technical Committee discussions  
 
OPTION A:   
 16.
  -  Change of tariff heading.  No changes from subheadings for parts, or within 
subheadings from blanks to finished goods, could re flect substantial transformation in these headings 
because the watch and clock cases are produced fro m a small number of parts, and usually one 
principal part,  by basic operations.   
OPTION B:  
 17.
  -  Change  of tariff subheading.  Changes from parts to finished goods of these headings 
reflects substantial transformation.   
OPTION C:  
 
18.  -  Change of tariff heading or change within subheadings by the finishing of blanks.  
Changes at the subheading level from go ods classified as parts to finished goods should not be 
substantial transformation; but changes within su bheadings by the working,  machining and polishing 
of blanks should be origin -conferring.  
Relevant HS code numbers and descriptions  
 19.
  91.11  - Watch cas es and parts thereof;  
  91.12  - Clock cases and cases of a similar type for goods of this Chapter, and parts t
 thereof.  
  G/RO/45/Add.16/Rev.3 
 Page 5 
 
 
  ISSUE FOR DECISION NO. 5  
 20.
  Is change to finished straps, bands or bracelet s from parts classified within 91.13, or change 
from blanks c lassified within 91.13, substantial transforma tion?   This issue applies also to the 
heading 91.14, but only to the question of bl anks (mutatis mutandis), i.e. option A and B.  
Differing views presented in the relevant Technical Committee discussions  
 OPTIO
N A:  
 21.
  -  Change of tariff heading, indicating that no changes from parts or from blanks are 
considered substantial transformation.   
OPTION B:  
 22.
  -  Change of tariff heading or change from bl anks to finished goods within the same 
subheadings by working, machining or polishing.   
OPTION C:  
 23.
  -  Change of tariff heading or change within  subheadings from parts to finished goods.  
Relevant HS code number and description  
 24.
  91.13  -  Watch straps, watch bands and wa tch bracelets, and parts thereof  
 91.14  - Othe r clock or watch parts  
 ISSUE FOR DECISION NO. 6
 
 25.
  Is the manufacture of unassembled watch stra ps from fabric substantial transformation?  
Differing views presented in the relevant Technical Committee discussions  
 OPTION A:
 
 26.
  - the origin of unassembled st raps and bands of this subh eading should be based on the 
country of origin of the fabric; change to unassemb led straps of this subheading from fabric is not 
substantial transformation as it requires opera tions such as cutting, hemming and looping.  
OPTION B:   
 27.
  - change to unassembled goods of this subhead ing from any other heading is sufficient to 
express substantial transformation.  
Relevant HS code number and description  
 28.
  9113.90  - Other  
 
References to Technical Committee documents  
 
29.   Report of 4th Sess ion (Doc. 40.245) Annex H/1. paragraphs 1 -14 G/RO/45/Add.16/Rev.3 
Page 6  
 
   
Report of 5th Session (Doc. 40.510) Annex E/1  
 Draft Report of 8th Session (Doc . 41.511) Annexes IJ/1 and IJ/2  
 Secretariat’s Issues List for Basket 2 (Doc. 41.221)  
 Working Document:  Second Examination (Doc. 41.225)  
 Report of the Tokyo Intersessional Group (Doc. 41.209)  
 Reference Document 41.236  
 Reference Document 41.218  
 Reference Document 41.208  
 Reference Document 41.416  
 Reference Document 41.433  
 Reference Document 41.507  
  
   G/RO/45/Add.16/Rev.3
 Page 7CHAPTER 91 
 
Primary rule:  Chapter Notes  
 
Disassembly operations, including those which result in a change of  tariff classification, shall not be considered origin confe rring.    Basket 1 (Endorsed 
by CRO) 
 
[Product specific] [Chapter] residual rules  
 
When application of the primary rules of this chapter (includi ng the product specific rules provided in the matrix) does not re sult in a determination of a 
country of origin, the country of origin shall be determined as follows: 
  1. The country of origin of goods of heading 91.13 that contai n textile fabric or other textile  material shall be the country where the textile fabric or 
other material was formed, or in the case of a good containing textile  materials of more than one country,  the origin of the g ood is the country in which the textile 
fabric or other textile material that predom inates by weight was formed.  (US)]      Submitted to CRO for decision (Doc.OC0023E2, Issue No.77) 
 
HS Code 
Number Description of goods Primary rule Notes Comments 
A B C D E 
91.01  Wrist-watches, pocket-watches 
and other watches, including stop-watches, with case of precious metal or of metal clad with precious metal.   [ CTH ] 
 [ CTH, except from heading 91.08 or 91.09 ]   
Submitted to the CRO for decision  
91.02  Wrist-watches, pocket-watches 
and other watches, including stop-watches, othe r than those of 
heading No. 91.01.  [ CTH ] 
[ CTH, except from heading 91.08 or 91.09 ]   
Submitted to the CRO for decision  
91.03  Clocks with watch movements, 
excluding clocks of heading No. 
91.04.  [ CTH ] 
[ CTH, except from heading 91.08 or 91.09 ]   
Submitted to the CRO for decision  
91.04  
 Instrument panel clocks and 
clocks of a similar type for 
vehicles aircraft, spacecraft or vessels.  [ CTH ] 
[ CTH, except from heading 91.08 or 91.09 ]   
Submitted to the CRO for decision  
91.05  Other clocks.  [ CTH ] 
[ CTH, except from heading 91.08 or 91.09  Submitted to the CRO for decision   
  G/RO/45/Add.16/Rev.3 
Page 8 HS Code 
Number Description of goods Primary rule Notes Comments 
A B C D E 
91.06  Time of day recording apparatus 
and apparatus for measuring, recording or otherwise indicating intervals of time, with clock or watch movement or 
with synchronous motor (for 
example, time-registers, time-recorders).  [ CTH ] 
[ CTH, except from heading 91.08 or 91.09 ]   
Submitted to the CRO for decision  
91.07  
 Time switches with clock or 
watch movement or with synchronous motor.  [ CTH ] 
[ CTH, except from heading 91.08 or 91.09 ]   
Submitted to the CRO for decision  
91.08  Watch movements, complete and 
assembled.   CTH, except from ex 91.10 (b)  
  Endorsed 
91.09  Clock movements, complete and 
assembled.  CTH, except from ex 91.10 (b)  
  Endorsed 
91.10  Complete watch or clock 
movements, unassembled or 
partly assembled (movement 
sets); incomplete watch or clock movements, assembled; rough watch or clock movements.   
As indicated for split heading    
ex  91.10 (a) Complete watch or clock 
movements, unassembled; rough 
watch or clock movements  CTH except from heading 91.14  Basket 1 (endorsed by CRO)   
   G/RO/45/Add.16/Rev.3
 Page 9HS Code 
Number Description of goods Primary rule Notes Comments 
A B C D E 
ex  91.10  (b) Complete watch or clock 
movements, partly assembled and 
incomplete watch or clock 
movements, assembled, containing 
at least two of the following 
components on a common support: 
time reference de vice, device for 
converting the time reference for 
purposes of display, time setting 
mechanism or opto-electronic 
display      CTH ; or 
Change from split heading ex - 91.10 (a),    
 
ex  91.10  (c) Other    CTH, except from heading 91.14  Basket 1 (endorsed by CRO)  
91.11  Watch cases and parts thereof.     As specified for subheadings    
9111.10 -Cases of precious metal or of 
metal clad with precious metal   CTH or change from blanks to finished 
goods classified in the same subheading    Endorsed 
9111.20 -Cases of base metal, whether or 
not gold- or silver-plated   CTH or change from blanks to finished 
goods classified in the same subheading   Endorsed 
9111.80 -Other cases  CTH or change from blan ks to finished goods 
classified in the same subheading   Endorsed 
9111.90 -Parts   CTH  Basket 1 (endorsed by CRO)  
91.12  Clock cases and cases of a 
similar type for other goods of this Chapter, and parts thereof.  As specified for subheadings.  
   
9112.10 -Cases of metal  CTH or change from blan ks to finished goods 
classified in the same subheading   Endorsed 
9112.80 -Other cases  CTH or change from blan ks to finished goods 
classified in the same subheading   Endorsed 
9112.90 -Parts CTH  Basket 1 (endorsed by CRO)  
91.13  Watch straps, watch bands and 
watch bracelets, and parts thereof.  As specified for subheadings.  
    
  G/RO/45/Add.16/Rev.3 
Page 10 HS Code 
Number Description of goods Primary rule Notes Comments 
A B C D E 
9113.10 -Of precious metal or of metal clad 
with precious metal CTH or change from parts to finished goods 
classified in the same subheading   Endorsed 
9113.20 -Of base metal, whether or not 
gold- or silver-plated CTH or change from parts to finished goods 
classified in the same subheading   Endorsed 
9113.90 -Other CTH  Endorsed by the CRO 
91.14  Other clock or watch parts.   CTH 
    Submitted to the CRO for decision  
 
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