WORLD TRADE  
ORGANIZATION  G/RO/W/124 
2 October 2008 
 (08-4684) 
Committee on Rules of Origin Original:   English 
  
 
DRAFT CONSOLIDATED TEXT OF NON-PREFERENTIAL RULES OF ORIGIN 
 
Harmonization Work Programme
 
 
Communication from Japan 
 
  The following communication, dated 29 September 2008, has been received from the Delegation of Japan.  
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JAPAN’S COMMENTS ON G/RO/W/111/Rev.2 
DRAFT CONSOLIDATED TEXT OF NON-PREFERENTIAL 
RULES OF ORIGIN 
 
 
A. G
ENERAL COMMENTS  
1. A draft text with track changes is very help ful for Members to verify the modifications made 
by the Secretariat.  It would be much appreciated, if the Secretariat would continue to provide such a 
draft to Members.  
2. With regard to the issue of the dual-rule approach for machin ery in Chapters from 84 to 90 
and 92, the CRO Chairperson said in the previous meetings that she sought guidance from the General 
Council, and looked forward to receiving it.  We sh are the view with the Chairperson on this matter, 
and therefore, we refrain from submitting concre te comments on those chapters, in the October 
meeting of CRO. 
 
B. G
ENERAL RULES  
1. General Rule 4: Packing and Packaging Materials and Containers 
 
 This provision stipulates that, in determining the origin of the goods in accordance with the 
rules for wholly obtained goods set out in Appendix  1, or the tariff classification change rules or 
specific process rules provided in Appendix 2, pa cking and packaging materials and containers 
presented with the goods shall be disregarded. In a case where the value added rule is applied for 
determining the origin of the goods, are packing and packaging materials and containers disregarded?  
In this case, are packing and packaging materials and containers treated as non-originating material? 
  G/RO/W/124 
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  C. A
PPENDIX 2 
1. Rule 3: Determination of origin - Residual Rules (f) 
  Regarding the last sentence of Residual Rules (f) of Rule 3, does it mean the basis for major 
portion are stipulated not in overall architecture, but in each Chapter?  In the previous meetings, the Chairperson said that the basis was stipulated in overall architecture and, in exceptional cases, 
different bases are provided in specific chapters.  In this regard, a provision “When the good is 
produced from materials (whether or not originating) of more than one country, the country of origin 
of the good shall be the country in which the major portion of those materials originated, as 
determined on the basis of value of the goods, unl ess specified otherwise in a certain Chapter” should 
be inserted as G/RO/W/111/Rev.1.  For reference, in  Rule 6 “De Minimis” set out in Appendix 2, the 
basis is specified in overall architecture. 
 
2. 0103.10 
 
 “brreding” should be replaced by “breeding”. 
 
3. ex03.05 (d) 
 
 “CTHS except from split heading ex0305(b)” s hould be replaced by “CTHS except from split 
heading ex0305(c)”, in accordance with the chair’s final package (JOB (06)/86/Rev.2). 
 
4. 07.12 (b) 
 
 Firstly, freeze-dry process is the restorative a nd reversible technology with which vegetables 
keep their nutrient, flavour and taste.  There is no difference between freeze-dried vegetables and 
fresh or dried vegetables, which are wholly obtai ned goods, in shape and quality.  Secondly, import of 
such freeze-dried vegetables woul d have a negative impact on the reputation of domestic fresh 
vegetables.  For example, imported vegetables c ould be processed and distributed as freeze-dried 
vegetables made in the country.  It could lessen th e domestic vegetable’s value.  Thirdly, if the 
Chair’s proposal is applied to the case where a ve getable, produced in count ry A, is exported and 
freeze-dried in country B, the origin of the vegetabl e is conferred to country B.  However, if this 
freeze-dried vegetable is re-exported a nd returned to the original state in country C, the origin of the 
vegetable is conferred to country A.  Therefore, we still support WO. 
 
5. 22.09 
 
 We are flexible on the EC’s proposal, “CTH , except from heading 22.04” on the condition 
that harmonized rules of origin do not prejudice me mbers’ rights and obligations in respect of the 
application of domestic requ irements for food labelling. 
 
6. Chapter Notes of the following Chapters: 
 
 28, 29, 30, 31, 32, 33, 34, 35, 37, 38, 39, 40, 42, 43, 48, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 72, 73, 74, 75, 76, 78, 79, 80, 81 
 
 For the purpose of editorial improvement, ser ial numbers should be added on these Chapter 
Notes (e.g. “7” should be added before “criterion to apply Appendix 2. Rule 3(f) in Chapter Notes of 
Chapter 28). 
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  7. Chapter residual rules in Chapter Notes of Chapters 28 and 29 
 As we pointed out in the April meeting, a single unit should be used to avoid an arbitrary 
decision by a country of origin. 
 
8. 28.13 and 28.16 
 
 G/RO/W/111/Rev.2/Corr.1 stipulates that the primary rule of heading 28.13 should read 
“CTH”, while G/RO/45/Add.9/Rev.2 provides that  the choice between CTH and CTSH has been 
identified as a question of origin terminology to be  resolved during later consideration. How was the 
rule of heading 28.13 and 28.16 identified as “CTH”?  
 In order to be consistent with other head ings, such as 28.01, 28.04 and 28.05, which have 
multiple subheadings and CTSH as origin rules, h eading 28.13 and 28.16 should also have CTSH as 
its applicable rule. 
 
9. 30.02 
 
 The primary rule for heading 30.02 refers to biotechnological processes stipulated in 
paragraph 8 of the chapter notes.  Why does only this heading have the reference?  It is natural that 
co-equal chapter notes should equally apply to the w hole chapter, even other than heading 30.02, as 
primary rules. 
 
10. 32.13 
  The purpose of the exception for heading 32.13 could be not to confer origin to the change of 
classification resulting from “putting in tablets, tubes, jars, bottles, pans or in similar forms or 
packing” even if this is not mere putting up goods in  sets.  Does this mean the rule for 32.13 requires 
the production of colors, which would be classified in heading 32.07, in a country in order to be 
considered as origin conferring?  
 
11. 38.11 
 
 The amendment is based on the discussion in the April meeting.  However, the primary rule 
for heading 38.11 has been already endorsed as “CTH or
 Chapter note on Mixture & blend” in the 
previous meeting.  Therefore the rule should be  modified as ”CTH or Chapter Note on Mixture & 
Blend (See Note 2 of this Chapter)”.  12. 39.20 
 
 Heading 39.20 classifies “other plates, sheets, film, foil and strip of plastic “not
” reinforced, 
laminated or supported material”.  So its primary ru le should be “CTH, or change within this heading 
following the vacuum disposition of metal on the surface of plastics.”  13. 4002.80 
  The phrase “See Note 2 of this Chapter” w as added, taking into account the discussion in 
April.  We understand that the purpose of this amendm ent is to make clear that CTH caused by simple 
mixing is not sufficient to meet the rule of CTH, and that the rule for Mixtures and Blends on Chapter 
Note of this chapter should be satisfied to meet the rule of CTH. 
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  14. Chapter 43 Chapter Note Minor processing operations not affecting origin 
 
 In Chapter Note 1, the phrase "within Section XI" was replaced by "of headings 43.03."  This 
amendment seems to be intended to specify the rele vant heading to the Note.  In this regard, the 
phrase "of headings 43.03" should be replaced by "of headings 43.03 or 43.04." because heading 
43.04 also stipulates the same rule as 43.03.  
 
15. ex50.06(c) 
 
 We need clarification on the reason why th e exception for the rule of the split heading 
includes heading 50.07.  If this exception is intende d to avoid conferring origin for making silk yarn 
from woven fabrics of silk or of silk waste, Rule  2(d) (i) of Appendix 2, “changes which result from 
disassembly,” already precludes such a process from conferring origin.  16. Chapters 61 & 62 
 
 The primary rules for Chapters 61 and 62 in dicate precisely specific processes required to 
confer origin instead of using CC, CTH and so on.  Other chapters’ primary rules stipulate rules, using 
abbreviations in accordance with the terminology guide.  We would like to know why only these two 
chapters do not use an abbreviation.  For exam ple, primary rules for ex Chapter 62(a) and 
ex Chapter 62(e) could be described as” [CC or ch ange from ex Chapter 62(f) provided that the goods 
are assembled in a single country in  accordance with Chapter Note.]”. 
 17. ex Chapter 61(h) (ex6117.90) 
  We understand that goods classified in ex Chap ter 61 (h) include “parts cut to shape” which 
are parts of subheading 6117.90.  In this regard, the description of that split chapter should include 
“parts cut to shape” for clarification. 
 
18. ex Chapter 62(b) (ex62.09) 
  Primary rule for split Chapter 62 (b) is “CC,  except by cutting and/or hemming only.” without 
square brackets in G/RO/W/111/Rev.2.  Howe ver, this rule was in square brackets in 
G/RO/W/111/Rev.1.  In the April meeting, me mbers did not reach a consensus on dropping the 
brackets.  Therefore, the brackets should be reinserted in the draft. 
 
19. ex Chapter 62(f) (ex6217.90) 
 
 Considering whole splits of Chapter 62, subh eading 6217.90, as a whole, seems to belong to 
split ex Chapter 62(f).  We need clarifica tion on the reason why split Chapter 62(f) has an 
abbreviation “ex” ahead of 6217.90. 
 
20. 63.02-63.04 
 
 It is necessary to split these headings and to a pply different rules to each of split subheadings, 
as we explained in the April meeting.  In this regard , we need clarification on the current status of the 
rule for heading 63.02-63.04.  For reference, in  G/RO/W/111/Rev.2, these rules are in the square 
brackets.  However, according to “SUMMING UP OF THE RULES OF ORIGIN 
CONSULTATIONS” of 8th May 2008, they are mentioned without square brackets. 
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  21. 63.05 and 63.06 
 
 The square brackets on primary rules for h eading 6305 and 6306 were  dropped, according to 
G/RO/W/111/Rev.2/Corr.2.  For clarification, we would like to know why the square brackets were 
dropped.  22. 63.08 
  Primary rule of heading 63.08 is “CTH, excep t when resulting only from putting up in sets”. 
This rule provides that putting up goods in sets does not  confer origin, in itself. In that case, “putting 
up in sets” is not considered as a substantial transformation.  Therefore, we need clarification on 
which process could be considered conferring origin. In  the same regard, we also need clarification on 
whether it is necessary for each final product which consists of a set to be originating from the 
country where the set is produced. 
 
23. Chapter 70 Chapter Note 
  The First sentence of Chapter Note was in  the brackets in G/RO/W/111/Rev.1, but the 
brackets were removed in G/RO/W/111/Rev.2.  We need clarification on the reason why the square 
brackets were removed. 
 
24. 7019.52 
  While the subheading 7019.52 exists in HS1996,  it was deleted in G/RO/W/111/Rev.2.  We 
would like to know the reason why this subheading was deleted.  
 
25. 74.08, 7505.21, 7505.22, 76.05, 76.08, ex78.03(b), ex79.04(b), ex80.03(b) 
  Primary rules for 74.08 are “[CTH provided that  the cross-sectional area of the rod is reduced 
by at least 25%.]”.  This rule is applied to th e case where copper wire is produced only from rod.  
However, it is not clear how to treat cases wher e copper wire is produced from other intermediate 
materials than rod.  There are also some othe r headings (including their subheadings and split 
headings) which need the same modification.  For example, primary rule of subheading 7607.11 stipulates [CTSH, except from 76.06 or a change to fo il of heading 76.07 from heading 76.06, if there 
has been a reduction in the thickness of the source pr oduct by at least 25 %].  The former part of the 
rule covers the case using materials other than headi ng 76.06, and the latter part of the rule covers the 
case that intermediate materials ar e classified to heading 76.06.  This rule is one of good examples on 
how to cover possible all materials to produce goods. 
 
26. ex7601.10(a) 
 
 As mentioned in a comment we submitted requ esting to add square brackets to the primary 
rule, for ex 7601.10 (a) in G/RO/W/111/Rev.1, we understand that this split subheading rule has not 
been endorsed.  Therefore, we still requ est the insertion of square brackets. 
 
27. 7607.11 
 
 For avoidance of doubt, primary values for 7607.11 should be “CTSH, except from 76.06, [comma added] or a change to foil of heading 76.07 from heading 76.06 [comma deleted], if there has 
been a reduction in the thickness of the source product by at least 25%.”   G/RO/W/124 
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  28. ex81.01(e) 
 
 We need clarification on the reason why only th e rule for this split heading is bracketed.  The 
same rule stipulated in other headings has already been endorsed.  For consistency, this split heading 
should also be endorsed.  29. ex8112.11(a) 
  As a matter of editorial improvement, a triple-h yphen is needed in front of the description of 
goods.  30. Chapter 82 Chapter Note 1(a) 
 
 In G/RO/W/111/Rev.2/Corr.1, the phrase “of this  chapter” was deleted.  This phrase should 
be re-inserted to make clear the intention of the sentence. 
 
31. Chapter notes of Chapters 82 and 83 
 
 We are still in a position that “weight” should be used as a single unit.  32. 82.06 
 
 Primary rule for heading 82.06 is “CC”.  In addition to this line 63.08, 8215.10 and 8215.20 
are also the headings and subheadings which have  rules for “sets”.  Heading 82.06 does not exclude 
the process of resulting only from putting up goods in  sets as a substantial transformation to confer 
origin.  Furthermore, Rule 2(d) of OVERA LL ARCHITECTURE of G/RO/W/111Rev.2 does not 
cover the case of “sets”.  For consistency, it is  necessary to add the phr ase “except when resulting 
only from putting up in sets” in the rule for this heading. 
 
33. Chapter 83 Chapter Note 
  The title should be “Goods or  Parts Produced from Blanks”. 
 
34. 9401.90 
 
 G/RO/W/111/Rev.2 stipulates that Primary rule for subheading 9401.90 is CTH.  On the other hand, G/RO/W/111/Rev.2/Corr.1, provides “CTH; how ever change of classification resulting from 
change of use itself is not origin conferring”.  We recognize an appropr iate rule for “p arts” is “CTH”; 
taking into account the discussion carried out for a long time.  In fact, the rules for ex94.02(b) and 
9403.90 are “CTH”.  We need clarification on how th e rule was agreed?  If the rule has already been 
agreed, it is necessary to avoid conferring origin to the change of use not only for this subheading but 
also for the other headings and subheadings.   35. ex94.02(b) and 9403.90 
  In the case where the words “however change of classification resulting from change of use 
itself is not origin conferring” is inserted to subheading 9401.90, the same words should also be put in to ex 94.02(b) and 9403.90, for consistency. 
 
 
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