RESTRICTED  WORLD TRADE  
ORGANIZATION  G/RO/M/53 
20 January 2010 
 (10-0295) 
Committee on Rules of Origin  
  
 
MINUTES OF THE MEETING OF 15 OCTOBER 2009 
 
Chairperson:  Ms. Vera Thorstensen
 
 Subjects Discussed
 
 
I. TECHNICAL ISSUES IN THE H ARMONIZATION WORK PROGRAMME 
(G/RO/W/111/REV.4;  JOB(07)/84/REV.1;  G/RO/W/127 AND 128) – REPORTING OF THE INFORMAL CONSULTATIONS..................................................1
 
II. TRANSITIONAL REVIEW UNDER PARAGRAPH 18 OF THE PROTOCOL 
OF ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA (WT/L/432;  
WT/ACC/CHN/49, PARAS. 97-102) .....................................................................................10  
III. NOTIFICATIONS UNDER ARTICLE 5 AND PARAGRAPH 4 OF ANNEX II OF THE AGREEMENT ON RULES OF ORIGIN (G/RO/N/62-63) ................................10
 
IV. ANNUAL REVIEW OF THE IMPLEMENTATION AND OPERATION OF 
THE AGREEMENT ON RULES OF  ORIGIN (G/RO/W/129).........................................10  
V. ANNUAL REPORT (2009) TO THE COUNCIL FOR TRADE IN GOODS 
(G/RO/W/130) ................................................................................................................... ......10  
VI. DATES OF THE NEXT MEETING.....................................................................................11  
 
 
I. TECHNICAL ISSUES IN THE HARMONIZATION WORK PROGRAMME 
(G/RO/W/111/REV.4;  JOB(07)/84/REV.1;  G/RO/W/127 AND 128) – REPORTING OF 
THE INFORMAL CONSULTATIONS 
1.1 Based on the informal consultations the Chai rperson had held with Members concerned, the 
Chairperson  stated as follows: 
 
A. OVERALL ARCHITECTURE  
1. General Rule 5  
It was noted that the words "The origin of" in th e beginning of General Rule 5 should be removed. 
 
2. General Rule 6  
(a) One delegation noted that there are provisions in  Appendix 2 which are si milar to the General 
Rule 2, and that, for instance, the drying of fi sh is recognized in the CRO Chair's proposal as 
a substantial transformation, but it may be consid ered to be "ensuring preservation of goods in 
good condition for the purposes of storage".  Th erefore, the delegation suggested that the 
expression "whether a good has been wholly obtained in one country" should remain with brackets, until we all have a crystal clear idea of the scope of this provision. G/RO/M/53 
Page 2  
 
  (b) One delegation stated that, according to curre nt consolidated text, minimal operation or 
process should apply to Appendix I and II both, a nd that in their view any production process 
(such as drying) which changes the nature of a good cannot qualify as a minimal operation.  
He had already provided the CRO with a text  for this rule as contained in document 
G/RO/W/121. 
(c) Egypt proposed the following list of minimal operations: 
 
 " The following is a non-exhaustive list of “Minimal Operations and Processes” which 
includes, inter alia :  
 
i) preserving operations to ensure that th e products remain in good condition during 
transport and storage; 
ii) breaking-up and assembly of packages; 
iii) washing, cleaning; removal of dust, oxide, oil, paint or other coverings; 
iv) ironing or pressing of textiles; 
v) simple painting and polishing operations; 
vi) husking, partial or total bleaching, polishing, and glazing of cereals and rice; 
vii) operations to colour sugar or form sugar lumps; 
viii) peeling, stoning and shelling, of fruits, nuts and vegetables; 
ix) sharpening, simple grinding or simple cutting; 
x) sifting, screening, sorting, classifying, grading, matching; (including the making-up of 
sets of articles); 
xi) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and 
all other simple packaging operations; 
xii) affixing or printing marks, labels, logos and other like distinguishing signs on products or 
their packaging; 
xiii) simple mixing of products, whethe r or not of different kinds; 
xiv) simple assembly of parts of articles to c onstitute a complete article or disassembly of 
products into parts."  G/RO/M/53 
 Page 3 
 
 
  3. Appendix 2  
 Rule 1  
 
• The EC and Egypt preferred Alternative 1 
• Chinese Taipei, India, Korea, US, and Vietnam preferred Alternative 2 
 
Alternative 2 text was amended as fo llows:  This rule shall be applie d in sequence, taking into account 
Rule 2 where applicable.   Rule 1(d)
 
 
• India and Korea preferred Alternative 1 or 3 
• The US preferred Alternative 2 
 
Alternative 2 text was amended as follows:  The country of origin of a good that has undergone 
production is the country of origin of the single material, taking into acc ount originating and non-
originating materials, that does not satisfy a primary rule for the good;  
• Argentina, China and Japan preferred Alternative 3 
• Egypt reserved its position on this issue  
 
 Change of order of Rule1(d) and 1(e)
 
 
• The EC and Egypt preferred the change of order 
• Japan, Korea and the US did not support the change 
  Rule 1(f)
 
 
• Egypt reserved its position on this issue 
  Rule 2(b)
 
 A proposal was made to add the following sentence to the current sentence:  Reference to materials in 
the residual rules shall apply to originating and non-originating materials; 
 
 Rule 2(e)
 
 
• Japan indicated flexibility on this rule. 
 G/RO/M/53 
Page 4  
 
   
 
 
Non-Proposal from the CRO Chair  
 
APPENDIX 2 – PRODUCT SPECIFIC RULES OF ORIGIN 
 
 This Appendix sets forth rules for determini ng the country of origin of a good when the good 
is not considered to be wholly obt ained in accordance with Appendix 1. 
 
 Rule 1:  Determination of Origin 
 
 Alternative 1 : The country of origin shall be dete rmined in accordance with this Rule, 
 applied in sequence: 
 
 Alternative 2 : [The provisions of] this Rule shall be  applied in sequence, taking into account 
 Rule 2 where applicable: 
 
(a) The country of origin of a good is the country in which the good is produced exclusively from 
originating materials; 
 
 Primary Rules  
 
(b) When a primary rule by its own terms identifies the country of origin of a good, that country 
is the country of origin of the good;  
 
(c) The country of origin of a good is the last c ountry of production, provided a primary rule 
prescribed for the good in this Appendix has been satisfied in that country; 
 Residual Rules  
 
(d) Alternative 1 : When a good is produced by further processing of a material which is 
classified in the same heading, subheading, split heading, or split subheading as the good, the 
country of origin of the good shall be the single country in which the material originated; 
 
 Alternative 2 : The country of origin of a good that has undergone production is the country of 
 origin of the single material, taking into acc ount originating and non-originating materials, 
 that does not satisfy a primary rule for the good; 
 
 Alternative 3 :  when a good is produced by further processing of a material which is classified 
 in the same subdivision1 as the good, the country of origin of the good shall be the single 
 country in which the material originated; 
 
(e) The country of origin of a good is the country where a residual rule at the chapter level is 
satisfied; 
 
(f) Alternative 1 : The country of origin of a good shall be the country of origin of material or 
materials incorporated in the good by further processing, provided the origin of material or 
materials is a single country; 
 
                                                      
1 The term "subdivision" relates to the lowest level of classification of the good, i.e. heading, 
subheading, split heading or split subheading, at which a primary rule is specified in this Appendix.  G/RO/M/53 
 Page 5 
 
 
   Alternative 2 : When the good is produced from material  or materials all of which originated 
 in a single country, the country of origin of the good shall be the country in which the 
 material or materials originated;  
(g) When a good is produced from materials of more than one country, the country of origin of 
the good shall be the country in which the ma jor portion of those materials originated, as 
determined by the criterion specified in th e Chapter where the good is classified;  and 
(h) Can we be sure that the above rules will definite ly identify a single country of origin for any 
goods under all possible production possibilities? 
 
 Rule 2:  Application 
 
(a) The rules provided in this Appendix are to  be applied to goods based upon their 
classification in the HS as referred to in Ge neral Rule 1 of this Annex and any additional 
subdivisions created for the purposes of this Appendix; 
(b) Reference to a change in tariff classifica tion in primary rules shall apply only to non-
 originating materials;  [Reference to materials in the residual rules shall apply to originating 
 and non-originating materials;] 
(c) When the primary rules require a change in  tariff classification, the following changes in 
 classification shall not be considered in determining the origin of the good; 
 (i) changes which result from disassembly, 
 (ii) changes which result from packaging, repackaging, or putting up for retail sale, 
 (iii) changes which result solely from applica tion of General Rule of  Interpretation2(a) of 
  the HS with respect to collections of parts that are presented as unassembled or      
  disassembled articles. 
 
However, such changes shall not preclude conferri ng origin on a good if origin is conferred as 
 a result of other operations. 
(d)  Intermediate materials  
 Materials which have acquired or iginating status in a country are considered to be originating 
materials of that country for the purpose of de termining the origin of a good incorporating 
such materials, or of a good made from such materials by further working or processing in 
that country; 
(e)   Interchangeable goods and materials  
 When it is not commercially practical to keep separate stocks of interchangeable materials or 
goods originating in different countries, the country of origin of commingled materials or 
goods that are interchangeable may be allocated  on the basis of an inventory management 
method recognized in the country in which the materials or goods were commingled; 
(f)   De Minimis 
 For the purposes of the application of primar y rules based on tariff classification change, non-
originating materials that do not satisfy the prim ary rule shall, unless otherwise specified in a 
certain Chapter, be disregarded, provided that  the totality of such materials does not exceed 
10% of the value of the good. 
 
 
 G/RO/M/53 
Page 6  
 
  B. P
RODUCT -SPECIFIC RULES OF ORIGIN  
Chapter Notes  
 
• It was noted that there are some wording discr epancies on origin conferring in chapter notes 
of the current Draft text and that "be consid ered as origin conferring" is an appropriate 
wording. 
• Egypt preferred the wording "is origin conferring". 
 
Split heading 03.05(a ), 03.05(b) 
 
Korea requested to replace its position on these spl it headings to the opinions of Chapter 3 on the 
submitted document G/RO/W/132. 
 
Heading 04.04  
 
• It was noted that since descriptions of two splits of this heading are the same as two 
subheadings of this heading, the splits should be replaced by the subheadings. 
• Egypt reserved its right as it is still under study  and there is a strong preference for wholly 
obtained. 
 
Split heading 07.12(b ) 
 
One delegation stated that freeze-dying was a high-t ech in the past, but now it becomes a very easy 
operation. 
 
Heading or subheading 09.01  
 
• Guatemala proposed as follows:  "The origin sh all be the country where the grain was sown 
and harvested". 
• Chapter 9, Guatemala proposed for the chapter r esidual rule regarding Mixtures, Paragraph 2, 
that the percentage to be raised from 50% to 85%. 
• Guatemala also stated that it supports "CTH " rule for split subheadings ex0901.21(b) and 
ex0901.22(b). 
 
Split heading ex15.21(a)  
 
• It was noted that only refined goods are classi fied in split heading ex15.21(a);  therefore 
CTHS rule is the same as "CTHS, or change by refining". 
• Egypt reserved its position on this issue. 
 
Subheading 2525.10  
 
It was noted that the wording of “this heading” in the primary rule of this subheading should be “this 
subheading”.  Chapter 28
 
 
• One delegation stated that their proposal c ontained in document G/RO/M/51 (page 11) should 
be discussed at the next meeting of the CRO. 
• Egypt reserved its right on this issue. 
  G/RO/M/53 
 Page 7 
 
 
  Heading 30.02  
 
• It was noted that since there is a primary rule  at heading level, the subheadings under this 
heading could be deleted. 
• One delegation explained its proposal contained in document G/RO/W/131. 
• Egypt reserved its right on this issue. 
 
Chapters 31 and 32  
 
It was noted that Chapter Residual rules of Chapters 31 and 32 are similar to Rule 1(g) and that 
therefore there is no need for Rule 1(g) for these  chapters.  Members are requested to check the 
necessity of Rule 1(g) for these chapters.  Definition 2 (Complete making-up) of Chapters 42 and 43
 
 
• It was noted that since the term "complete maki ng-up" is not used in these chapters;  it should 
be dropped. 
• It was also noted that Definition 1 is in square brackets. 
 
Subheading 64.06  
 
• Mexico proposed "CTH" instead of the Chai r's proposal "CTHS" for split headings ex 
6406(a)." 
• Egypt agreed and said it will come back to this, given the discussion today. 
 
Heading 82.06  
 
The primary rule of this heading has been cha nged to "CTH, except when resulting only from putting 
up in sets" from "CC" for the sake of consistency.  
Chapters rules of machinery (chapters 84-90)
 
 
• It was noted that Primary Rules/Notes A(a)(b)(c )(d)(e) had already been endorsed by the CRO 
and that all other Rules/Notes have not yet been endorsed. 
 
• One delegation questioned whether Subsidiary ru les should be located at Chapter level or 
Heading level. 
 
• Several questions were raised as follows: 
 
  -  Rule C should called Primary Rules, Residual Rules or Additional Primary Rules ? 
  -  How a part can be attached  to a base in Rule C(b)(3)(i) ? 
 
• It was noted that Rule D is only applicable to Column (3) 
 
• For high-tech machines weight may not be a good criteria to be used for a major portion. 
 
• The Secretariat was requested to restore some missing rules in machinery chapters. 
 
• China made a new proposal as follows: 
  G/RO/M/53 
Page 8  
 
   
A. Primary Rule/Note for Chapters 84-90  
 
(a) Goods obtained by disassembly  
 A change of classification which results from the disassembly of goods shall not be 
considered as the change required by the rule set forth in the matrix.  The country of origin of 
the parts recovered from the goods that are not capab le of being restored or repaired shall be 
the country where the parts are recovered, unl ess the importer, exporter or any person with a 
justifiable cause to determine the origin of pa rts demonstrates another country of origin on the 
basis of verifiable evidence such as orig in marks on the part itself or documents. 
 
(b) Collection of parts  
 Where a change in classification results from the application of HS General Interpretative 
Rule 2(a) with respect to collections of pa rts that are presented as unassembled articles of 
another heading or subheading the individual parts shall retain their origin prior to such 
collection.   
 
(c) Assembly of the collection of parts  
 Goods assembled from a collection of parts clas sified as the assembled good by application of 
General Interpretative Rule 2 shall have orig in in the country of assembly, provided the 
assembly would have satisfied the primary ru le for the good had each of the parts been 
presented separately and not as a collection. 
 
(d) Parts and accessories produced from blanks  
 For the purposes of headings 84.80 and 84.83 a nd goods classifiable in provisions for parts or 
parts and accessories, including goods specifically named under such provisions, the country 
of origin of goods that are produced from blanks  which, by application of the HS General 
Interpretative Rule 2(a), are classified in the same heading or subheading as the complete or 
finished goods, shall be the country in whic h the blank was finished provided finishing 
included configuring to final shape by the remova l of material (other than merely by honing 
or polishing or both), or by forming processes such as bending, hammering, pressing or 
stamping. 
 
B. Primary Rule applicable to Subheadings  8471.50, 8471.60, 8471.70 and 8471.80  
 
 For the purposes of subheadings 8471.50, 847 1.60, 8471.70 and 8471.80, the assembly of 
goods of those subheadings in the same housing with units of other subheadings within that 
group shall be origin conferring. 
 
C. Notes for Chapters 84-90 applicable to primary rules contained in Column (4) 
 
 Application of the value added rule  
 The term "X% value added rule" shall mean manufacture where the increase in value acquired 
as a result of working and processing, and if app licable, the incorporation of parts originating 
in the country of manufacture represents at least X% of the ex-works price of the product; 
 
 The term "ex-works price" shall mean the pri ce to be paid for the product obtained to the 
manufacturer in whose undertaking the last wo rking or processing is carried out (this price 
shall not include internal taxes which are, or may be, repaid when such product is exported);  G/RO/M/53 
 Page 9 
 
 
   The term "value acquired as a result of work ing and processing and incorporation of parts 
originating in the country of manufacture" sha ll mean the increase in value resulting from the 
assembly itself, together with any preparator y, finishing and checking operations, and from 
the incorporation of any parts originating in th e country where the operations in question were 
carried out, including profit and the general costs borne in that country as a result of the 
operations; 
 
D. Residual Rules/Notes with regard to Column (3) 
 
 The following shall be applied in sequence: 
 
1 When the good is produced from materials or  components that changed classification but did 
not satisfy the primary rule applicable to the good in matrix, the country of origin of the good 
is the country that furnished all or the ma jor portion of that material or component. 
 
2. [The country of origin of the good shall be th e country of origin of the material (or functional 
element) that gives the good its essential characte r, to the extent to which the principle of 
essential character can be applied.] 
 
3 For the purpose of the Goods classifiable under provisions for “parts” or “parts and 
accessories” and which are not described by na me in the Harmonized System, when the good 
is produced by the assembly of two or more part s, the country of origin shall be the country 
which contributes the major portion of the good calculated in value, including the value of 
materials and the value added by the assembly.  
 
The following parts shall not be counted for purposes of rule D3:  
 
1. the attachment of machinery to a base; 
2. the installation of machinery or apparatus into cabinets or similar encasements; 
3. the attachment of parts of general use as defi ned in Note 2 to Section XVI of the Harmonized 
System or similar parts of plastic (Chapter 39); 
4. the attachment of handles, dials, knobs, hand cr anks, and other consum er-operated controls; 
5. the attachment of a power cord or change of mains voltage/frequency by adding transformer, 
adapter or converter; 
6. the installation of batteries, accumulators, sensors, thermostats or other articles not designed 
to become a permanent part of the good; 
7. the attachment of accessories or parts (including  printed circuits with components assembled 
thereon), which serve only to enhance the operation of the machine or device; 
8. the addition of manuals, warranty cards, certificat es of conformance to standards (with or 
without testing), or labels; 
9. washing, cleaning; removal of dust, oxi de, oil, paint or other coverings; 
10. simple painting and polishing operations; 
11. affixing or printing marks, labe ls, logos and other distinguishin g signs on products or their 
packaging;  or 
12. the installation of software. 
 
E. Criteria to apply Appendix 2, Rule 1(g) with regard to Column (3) 
 
 The criteria to determine the major portion of the materials as set forth in Appendix 2, 
Rule 1(g) for Chapters 84-90 is value. 
 
 G/RO/M/53 
Page 10  
 
  Korea's position
   
 
The document of G/RO/W/132 also contains Kore a's opinions of other product specific rules of 
origin.  II. TRANSITIONAL REVIEW UNDER PARAGRAPH 18 OF THE PROTOCOL OF 
ACCESSION OF THE PEOPLE'S REPUBLIC OF CHINA (WT/L/432;  WT/ACC/CHN/49, PARAS. 97-102) 
2.1 The Chairperson
 noted that in accordance with paragra ph 18 of the Protocol of Accession of 
the People's Republic of China, the CRO was to report to the Council for Trade in Goods on the 
outcome of the Review which would then report to the General Council.   
 2.2 The CRO took note
 of the statement made and agreed  that the Secretariat prepare a report 
under the Chairman's responsibility to be sent to the Council for Trade in Goods. 
 
III. NOTIFICATIONS UNDER ARTICLE 5 AND PARAGRAPH 4 OF ANNEX II OF THE 
AGREEMENT ON RULES OF ORIGIN (G/RO/N/62-63) 
3.1 The Chairperson  recalled that since the last review on notifications by the CRO the 
Secretariat had circulated two documents informi ng delegations of notifi cations submitted by Korea 
and Norway (G/RO/N/62-63).  To date, 80 Members had made notifications of non-preferential rules 
of origin and 122 Members had made notifi cations of preferential rules of origin. 
 
3.2 The Chairperson  expressed concern that a number of Members had not yet complied with the 
notification.  3.3 The CRO took note
 of the statement. 
 
IV. ANNUAL REVIEW OF THE IMPLEMENTATION AND OPERATION OF THE 
AGREEMENT ON RULES OF  ORIGIN (G/RO/W/129) 
4.1 The Chairperson  noted that the Secretariat had circulated, in document G/RO/W/129, the 
draft Review of the Implementation and Operation of the Agreement, and that this would be revised in 
light of the discussion at this meeting of the CRO. 
 
4.2 The Committee adopted  the Annual Review of the Impl ementation and Operation of the 
Agreement on Rules of Origin.  
V. ANNUAL REPORT (2009) TO THE COUNCIL FOR TRADE IN GOODS 
(G/RO/W/130) 
5.1 The Chairperson
 noted that the Secretariat had circulated a draft of the CRO's report to the 
Council for Trade in Goods, as required by Article 6.1 of the Agreement (G/RO/W/130), and that this 
would be revised in light of the discussion at this meeting of the CRO.   5.2 The CRO adopted
 its annual report to the CTG (G/L/905). 
  G/RO/M/53 
 Page 11 
 
 
  VI. DATES OF THE NEXT MEETING 
6.1 The Chairperson  suggested the following dates for the next meeting of the CRO: 
  - 23 and 24 March 2010 for informal meetings;  - 25 March 2010 for the formal meeting. 
 
 
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