THE EU-JAPAN EPAPREFERENTIAL ORIGIN OF GOODS
Value rules
This presentation has been prepared with the sole purpose of simplifying the understanding of some parts of the EU-Japan EPA
and bears no legal standing.

11. Reminder

Table of contents

2. Value rule formulas
3. Value rules in the sufficient working rules (Annex 3-B)
3.1 General tolerance
3.2 Textile tolerance
3.3 Stand-alone rule
3.4 One of several possibilities
3.5 Cumulation with another rule
3.6 Included in a tolerance
3.7 Cumulation with a specific operation
4. Conclusion
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1. Reminder
Whollyobtained?
Yes
Preferentialorigin

Managed byNo

Working on non-EU materials
beyond insufficient working?

NoNo possibility ofpreferential origin

YesWorking fulfils therequirements of Annex 3-B?

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1. Reminder
The sufficient working rules are set out in column 2 of Annex 3-B
Before going to the Annex :Check- whether the exported goods are wholly obtained- whether the working > an insufficient working

List of insufficient workingsArticle 3.4

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1. Reminder CC rule (Change in Chapter) CTH rule (Change in tariff heading) CTSH rule (Change in subheading) MaxNOM x% (EXW)

Complex abbreviations

 RVC x% (FOB)

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2. Formulas
Formula to calculate the MaxNOM percentage

Formula to calculate the RVC percentage

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3. Value rules in the sufficient working rules (Annex 3-B) (1)When value rule  Always 2 possibilities
 MaxNOM x% (EXW) RVC x% (FOB)
The content is ALWAYS a limit in value of the non-originating materials,
expressed in 2 different ways:
 Either a maximal value for the NOM compared to the Ex Works price; Or a minimal local added value, compared to the FOB price.

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3. Value rules in the sufficient working rules (Annex 3-B) (2)Different variations for the value rule : 3.1 - General tolerance
 3.2 - Textile tolerance
 3.3 - Stand-alone rule 3.4 - One of several possibilities
 3.5 - Cumulation with another rule 3.6 - Included in a tolerance
 3.7 – Cumulation with a specific operation

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3.1 Value rule as the general tolerance
If non-originating materials used do not satisfy the requirements set
out in Annex 3-B, these materials are nevertheless allowed to beused and the finished product shall be considered as originating in aParty, provided that:a. the value of all those non-originating materials does not exceed
10% of the ex-works or FOB selling price of the product;b. the value of the non-originating materials used does not exceed
any of the percentages for the maximum value of non-originating
materials already specified in the rules set out in Annex 3-B.

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Products of chapters 61 through 63:
Articles of apparel and clothing, and other made-up textile articles
If, in the production of one of these articles, the non-originating
materials used do not fulfil the conditions set out in column 2 ofAnnex 3-B, the product can nevertheless benefit from the preferential
origin provided that:
1. The non-originating materials are classified in a heading different
from that of the product;
2. The value of the non-originating materials does not exceed 8% of
the EXW or FOB selling price of the product.
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3.3 Value rule as a stand-alone rule (1)Examples of products than can benefit from the preferential origin
through a value rule (= only possibility).
6307 – Different made-up textile articles, such as dishcloths and lifejackets.

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3.3 Value rule as a stand-alone rule (2)Other examples can be found in chapter 87, for vehicles and parts ofvehicles (8701 to 8707), and also for bicycles (8712).

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3.3 Value rule as a stand-alone rule (3)And the two last examples are two whole chapters : Chapter 92 (musical instruments and parts of musical instruments)
 Chapter 93 (arms and ammunition, and parts of arms)

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3.4 Value rule as one of several possibilities
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3.5 Value rule cumulated with another rule
In 5 headings of chapter 76 (aluminium and articles of aluminium) :The main rule is a CTH, cumulated with: A limited value for the non-originating materials, or A minimal local added value

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3.6 Value rule included in a tolerance
1 main rule  CTH+Tolerance to use materials of the same heading.
Tolerance in value:
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3.7 Value rule additional to a specific operation
In heading 5810 (heading where we have different embroideries),
the rule is a specific operation : embroidering, with anadditional requirement.
Limited use of non originating materialsof any heading, except those of 5810.

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4. Conclusion
To sum up all the cases with a value rule, the conclusion is that a value
rule is always expressed in 2 possibilities:
 Either a maximal value for the NOM compared to the Ex Works price; Or a minimal local added value, compared to the FOB price.
In most cases with a different percentage.

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Thank you for your attention!
Additional questions ?
Mail them to the EU-Japan helpdesk

This presentation has been prepared with the sole purpose of simplifying the understanding of some parts of the EU-Japan EPA
and bears no legal standing.

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