Product-specific Rules

Headnotes to the Annex

1. Pursuant to Article 3.2 (Originating Goods), this Annex sets out the conditions required for a good to be treated as an originating good.

2. For greater certainty, the origin criteria of “wholly obtained or produced in a Party” and “produced in a Party exclusively from originating materials from one or more of the Parties”, as provided in subparagraphs (a) and (b) of Article 3.2 (Originating Goods), apply to all tariff lines.

3. For the purposes of interpreting the Product-Specific Rules set out in this Annex: (a) Section means a section of the Harmonized System; (b) Chapter means the first two digits of the tariff classification number under the Harmonized System; (c) heading means the first four digits of the tariff classification number under the Harmonized System; and (d) subheading means the first six digits of the tariff classification number under the Harmonized System.

4. Where a good is subject to alternative Product-Specific Rules, the rule will be considered to be met if the good satisfies one of the alternative Product-Specific Rules.

5. A requirement of a change in tariff classification (hereinafter referred to as “CTC” in this Annex) applies only to non-originating materials.

6. Where the CTC rule expressly excludes a change from other tariff classifications, the exclusion applies only to non-originating materials.

7. For the purposes of this Annex:

(a) RVC40 means that the good must have a regional value content (hereinafter referred to as “RVC” in this Annex) of no less than 40 per cent as calculated under Article 3.5 (Calculation of Regional Value Content); (b) CC means that all non-originating materials used in the production of the good have undergone a CTC at the two- digit level of the Harmonized System; (c) CTH means that all non-originating materials used in the production of the good have undergone a CTC at the four- digit level of the Harmonized System; (d) CTSH means that all non-originating materials used in the production of the good have undergone a CTC at the six- digit level of the Harmonized System; (e) WO means wholly obtained or produced in a Party as provided in Article 3.3 (Goods Wholly Obtained or Produced). For greater certainty, where the rule for a good is WO, the good can still meet the requirements to be treated as an originating good by being produced in a Party exclusively from originating materials from one or more of the Parties in accordance with subparagraph (b) of Article 3.2 (Originating Goods); and (f) CR means the chemical reaction rule. Any good that is a product of a chemical reaction shall be considered to be an originating good if the chemical reaction occurred in a Party. A “chemical reaction” is a process, including a biochemical process, which results in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule. The following are not considered to be chemical reactions for the purposes of this definition: (i) dissolving in water or other solvents; (ii) the elimination of solvents including solvent water; or (iii) the addition or elimination of water of crystallisation. Where a Product-Specific Rule provides a choice of rules from an RVC-based rule of origin, a CTC-based rule of origin, a specific 3A-2manufacturing or processing operation, or a combination of any of these, each Party shall permit the exporter of a good to decide which rule to use in determining whether the good qualifies as an originating good. 9. This Annex is based on the 2012 Edition of the Harmonized System, which entered into force on 1 January 2012 (hereinafter referred to as “HS 2012” in this Annex).