Rules of Origin for the Asean–China Free Trade Area

Topics: International trade, Government, Export Pages: 17 (4795 words) Published: August 17, 2010
ANNEX 3 RULES OF ORIGIN FOR THE ASEAN–CHINA FREE TRADE AREA In determining the origin of products eligible for the preferential tariff concession pursuant to the Framework Agreement on Comprehensive Economic Co-operation between the Association of Southeast Asian Nations and the People’s Republic of China (hereinafter referred to as “the Agreement”), the following Rules shall be applied: Rule 1: Definitions

For the purpose of this Annex: (a) “a Party” means the individual parties to the Agreement i.e. Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic (“Lao PDR”), Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand, the Socialist Republic of Vietnam and the People’s Republic of China (”China”). “materials” shall include ingredients, parts, components, subassembly and/or goods that were physically incorporated into another good or were subject to a process in the production of another good. "Originating goods" means products that qualify as originating in accordance with the provisions of Rule 2. "production" means methods of obtaining goods including growing, mining, harvesting, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting, manufacturing, producing, processing or assembling a good. “Product Specific Rules” are rules that specify that the materials have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy an ad valorem criterion or a combination of any of these criteria. Origin Criteria

(b)

(c) (d)

(e)

Rule 2:

For the purposes of this Agreement, products imported by a Party shall be deemed to be originating and eligible for preferential concessions if they conform to the origin requirements under any one of the following: (a) Products which are wholly obtained or produced as set out and defined in Rule 3; or

314

(b)

Products not wholly produced or obtained provided that the said products are eligible under Rule 4, Rule 5 or Rule 6. Wholly Obtained Products

Rule 3:

Within the meaning of Rule 2 (a), the following shall be considered as wholly produced or obtained in a Party: (a) (b) (c) (d) (e) Plant1 and plant products harvested, picked or gathered there; Live animals2 born and raised there; Product3 obtained from live animals referred to in paragraph (b) above; Products obtained from hunting, trapping, fishing, aquaculture, gathering or capturing conducted there; Minerals and other naturally occurring substances, not included in paragraphs (a) to (d), extracted or taken from its soil, waters, seabed or beneath their seabed; Products taken from the waters, seabed or beneath the seabed outside the territorial waters of that Party, provided that that Party has the rights to exploit such waters, seabed and beneath the seabed in accordance with international law; Products of sea fishing and other marine products taken from the high seas by vessels registered with a Party or entitled to fly the flag of that Party; Products processed and/or made on board factory ships registered with a Party or entitled to fly the flag of that Party, exclusively from products referred to in paragraph (g) above; Articles collected there which can no longer perform their original purpose nor are capable of being restored or repaired and are fit only for disposal or recovery of parts of raw materials, or for recycling purposes4; and

(f)

(g)

(h)

(i)

Plant here refers to all plant life, including fruit, flowers, vegetables, trees, seaweed, fungi and live plants 2 Animals referred to in paragraph (b) and (c) covers all animal life, including mammals, birds, fish, crustaceans, molluscs, reptiles, bacteria and viruses. 3 Products refer to those obtained from live animals without further processing, including milk, eggs, natural honey, hair, wool, semen and dung. 4 This would cover all...
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