References to ‘manufacturing’, ‘producing’ or ‘processing’ goods include any kind of working, assembly or processing operation.
Methods of obtaining goods include manufacturing, producing, processing, raising, growing, breeding, mining, extracting, harvesting, fishing, trapping, gathering, collecting, hunting and capturing.
‘Material’ includes ingredients, parts, components, subassemblies and goods that were physically incorporated into another good or were subject to a process in the production of another good.
‘Originating material’ means a material whose country of origin, as determined under these rules, is the same country as the country in which the material is used in production.
‘Non-originating material’ means a material whose country of origin, as determined under these rules, is not the same country as the country in which that material is used in production.
‘Product’ means the product being manufactured, even if it is intended for later use in another manufacturing operation.
Value added rule
- ‘X% value added rule’ means manufacture where the increase in value acquired as a result of working and processing, and if applicable, the incorporation of parts originating in the country of manufacture represents at least X% of the ex-works price of the product. ‘X’ represents the percentage indicated for each heading.
- ‘Value acquired as a result of working and processing and incorporation of parts originating in the country of manufacture’ means the increase in value resulting from the assembly itself, together with any preparatory, finishing and checking operations, and from the incorporation of any parts originating in the 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.
- ‘Ex-works price’ means the price paid or to be paid for the product ready for collection at the manufacturer’s premises in whose undertaking the last working or processing is carried out; this price must reflect all costs related to the manufacturing of the product (including the cost of all the materials used), minus any internal taxes which are, or may be, repaid when the product obtained is exported or re-exported.
Where the actual price paid does not reflect all costs related to the manufacturing of the product which are actually incurred, the ex-works price means the sum of all those costs, minus any internal taxes which are, or may be, repaid when the product obtained is exported or re-exported;
Complete making up
The term ‘complete making-up’ used in the list means that all the operations following cutting of the fabric or knitting or crocheting of the fabric directly to shape have to be performed. However, making-up shall not necessarily be considered as incomplete where one or more finishing operations have not been carried out.
Where the term ‘country’ is used in the table of list rules, it shall be understood to refer to ‘country or territory’
Application of the rules in the table of list rules
The rules provided in the table of list rules are to be applied to goods on the basis of their classification in the Harmonised System, as well as on further criteria which may be provided for in addition to the Harmonised System headings or subheadings created specifically for the purposes of this table of list rules. A Harmonised System heading or subheading which is further subdivided using such criteria is referred to in the table of list rules as ‘split heading’ or ‘split subheading’. ‘Harmonised System’ means the Harmonized Commodity Description and Coding System (also referred to as ‘HS’) as amended pursuant to the Recommendations of 26 June 2009 and of 26 June 2010 of the Customs Cooperation Council.
Classification of goods within headings and subheadings of the Harmonised System is governed by the General rules for the interpretation of the Harmonised System and any relative Section, Chapter and Subheading Notes to that System. Those rules and notes form part of the Combined Nomenclature, which is set out in Annex I to Council Regulation (EEC) No 2658/87. For the purposes of the identification of a correct split heading or subheading for certain goods in this table of list rules, the General rules for the interpretation of the Harmonised System and any relative Section, Chapter and Subheading notes to that System, are to apply mutatis mutandis, unless otherwise required in this table of list rules.
Reference to a change in tariff classification in the table of list rules shall apply only to non-originating materials.
Materials which have acquired originating status in a country are considered to be originating materials of that country for the purpose of determining the origin of a good incorporating such materials, or of a good made from such materials by further working or processing in that country.
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.
For the purposes of the application of primary rules based on tariff classification change, non-originating materials that do not satisfy the primary rule shall, unless otherwise specified in a certain Chapter, be disregarded, provided that the total value of such materials does not exceed 10 % of the ex-works price of the good.
Primary rules laid down at Chapter level (Chapter primary rules) have the same value as primary rules laid down at subdivision level and can be applied alternatively. Where two different rules are indicated for one product (e.g. "CTH; or value added rule") they can also be applied alternatively.
The Chapter residual rule indicating that the country of origin of the goods is determined by the country in which the major portion of the materials originates, applies to both originating and non-originating materials used in the production.
The primary rules at subdivision level, when they are based on a change in tariff classification, can be expressed using the following abbreviations.
- CC: change to the chapter in question from any other chapter
- CTH: change to the heading in question from any other heading
- CTSH: change to the subheading in question from any other subheading or from any other heading
- CTHS: change to the split heading in question from any other split of this heading or from any other heading
- CTSHS: change to the split subheading in question from any other split of this subheading or from any other subheading or heading