2011/SOM2/MAG/009
Agenda Item: 8ii
The Rules of Origin for Machine Tools/Parts and
Toys and Games in Asia-Pacific FTAs
Purpose: Information
Submitted by: Chinese Taipei
38th Market Access Group Meeting
Big Sky, United States
10 May 2011
The Rules of Origin for Machine Tools/Parts and Toys and Games in
Asia-Pacific FTAs
(For MAG2 Meeting)
Chinese Taipei
(Revised Version of May 5, 2011)
This study focuses on the rules of origin (ROOs) of the 42 1 intra-regional free
trade agreements (FTAs) of the Asia-Pacific region for two categories of products:
(1) “Machine-tools and parts thereof,” which covers the 11 four-digit codes
8456 to 8466 in the Harmonized System (HS) and 36 subheadings in the
6-digit format.
(2) “Toys and games,” which includes products categorized under HS codes
9503 to 9505 and includes 8 subheadings in the six-digit format.
The purpose of this study is to provide a whole picture of ROOs in intraregional
FTAs/RTAs in general and illustrative terms and to serve as reference for discussion
or exploration of the ROO issues. It is beyond the intention or capability of the paper
to cover all the details in an exhaustive manner.
I. Machine-tools and parts thereof (HS 8456 to 8466)
(1) Product coverage
Products under HS 8456-8466 include machine-tools for different purposes,
machining centres, lathes, parts and accessories for machine tools of heading
8456 to 8465. (Note: Consistency exists between the 2007 HS version and the
2002 version for these headings.)
Machine-tools comprise one of the most important branches of the
machinery industry. Machine-tools are used to manufacture parts for
automobiles, aviations, national defense technology, machinery, molds,
electronics, generators, and etc. They also work as machines to process or
manufacture different kinds of metal parts for machinery equipment. Therefore,
1
Due to the unavailability of English versions, FTAs between Peru-Mexico, Chile-Peru and Chile-Malaysia
are not included in this study.
2
“machine-tools” in general is called the “mothers of machinery.”
(2) Global trade
The top 5 exporters in 2009 were Germany, Italy, Japan, the United States,
and Switzerland, accounting for 58.9% of world export. The 6 th , 7 th , and 8 th
biggest exporters were China, Chinese Taipei, and Korea respectively,
accounting for 13.52% of world export. The total export value of APEC member
economies accounted for 37.64% of the world export. Japan, the United States,
China, Chinese Taipei, and Korea were the main producers, accounting for
86.7% of APEC export.
(3) Rules of origin
The 42 FTAs’ ROOs for machine-tools are quite diverse. Among the 42 FTAs,
26 of them take the approach of Tariff Shift and/or RVC, and 5 adopt Tariff Shift
Only approach. 11 FTAs adopt the General Rule approach.
However, since machine-tools cover 11 four-digit HS code, Table 1
illustrates a general picture of numbers and approaches that the FTA/RTAs take
for machine-tools (HS 8456-8466), not intended to reflect all the details for the
individual tariff items. Take NAFTA and CAN-CHL for example, although
these 2 FTAs are categorized as “Tariff Shift and/or RVC” in the Table 1, only
products under HS 8464, 8465, (and some subheading of HS8459 in NAFTA)
are asked for taking this approach, while the rest of products apply “Tariff Shift
Only.” In contrast, most of the rest FTA/RTAs signed by American economies
apply Tariff Shift Only to products under HS 8464 and 8465 but Tariff Shift
and/or RVC to the rest.
Table 1: Pattern of ROOs for HS 8456-8466
HS Code
ROO Approach
Number of 42 FTA/RTAs
3
HS Code
ROO Approach
Number of 42 FTA/RTAs
Tariff Shift Only
52
53
RVC Only
0
84
26 5
29 6
General Rule
11 7
—
Total
42
42
Tariff Shift and/or RVC
8456-8466 --including Others
and/or Tariff Shift
If we look into the 11 FTAs which take the General Rule approach, 8 out of
11 take approaches of RVC Only, and 3 FTAs allow choosing ‘tariff shift’ or
RVC as alternatives. Therefore, if we allocate these two approaches separately
to the respective categories, there will be 8 FTAs adopting RVC Only and 29
taking the approach of Tariff Shift and/or RVC.
Economies in North America usually apply various ROOs on different
machine-tools and usually in 6-digit (subheading). In addition, their FTAs also
require 50-65% RVC. Eastern Asian economies usually do not treat different
machine-tools with different ROOs; they require 40-45% RVC.
ROOs actually vary from one FTA partner to another. For example, the
ROOs between Japan and the American economies usually require CTH (change
from heading) or 45-50% RVC, while CTSH (change from subheading) or 40%
RVC are required in ROOs between Japan and ASEAN economies. Singapore is
another example. Its ROOs with US demand CTH or 35-65% RVC, while its
2
3
4
5
6
7
The FTAs classified under the indicated approach are CAN -PER, CHN-PER, NZL-THA, P4, and NZL-MYS.
Id.
The FTAs classified under the indicated approach are CHN -CHL, CHN-SGP, AUS-SGP, AUS-Papua New
Guinea, ASEAN-CHN, ASEAN-AUS-NZL, APTA, and NZL-SGP.
The FTAs classified under the indicated approach are NAFTA, USA -SGP, USA-CHL, USA-AUS, USA-KOR,
USA-PER, CAN-CHL,CHL-MEX, PER-SGP, CHN-HKG, CHN-NZL JPN-MEX, JPN-MYS, JPN-SGP,
JPN-PHL, JPN-CHL, JPN-BRN, JPN-THA, JPN-Indonesia, AUS-THA, AUS-NZL, AUS-CHL, ASEAN,
NZL-HKG, KOR-CHL, and KOR-SGP. In CHN-HKG, i.e. CEPA between China and Hong Kong, ROOs for
some products have not been developed. Where CEPA ROOs are already developed under these headings,
different "ROO Approaches" are adopted for different products. For 8458.1100, 8458.1900, 8460.3900,
8465.1000, 8465.9100, 8465.9200, 8465.9300, 9465.9500, 8465.9900 , ROOs are metal working and
assembling and fulfilling the value-added content requirement (≧ 30%). The concept of "value-added
content requirement" is not exactly the same as RVC . For 8466.9200, Change in Tariff Heading (CTH) is
required.
The FTAs classified under the indicated approach include the 26 FTAs of the previous footnote and
JPN-VNM, ASEAN-JPN, ASEAN-KOR
The FTAs classifies under the indicated approach are CHN -CHL, CHN-SGP, JPN-VNM, AUS-SGP,
AUS-Papua New Guinea, ASEAN-CHN, ASEAN-AUS-NZL,ASEAN-JPN, ASEAN-KOR, APTA, NZL-SGP.
4
ROOs with ASEAN and Japan ask for CTSH or 40% RVC. As for ROOs with
Australia and New Zealand, both of the FTAs take the general rule but require
50% and 40% RVC respectively.
II. Toys and games (HS 9503 to 9505)
(1) Product coverage
Products under HS 9503-9505 are toys and games, including: tricycles,
scooters, pedal cars and similar wheeled toys; dolls' carriages; dolls; other toys;
reduced-size (scale) models and similar recreational models; articles for funfair,
table or parlour games; and festive, or other entertainment articles, including
conjuring tricks and novelty jokes.
In 2007 HS version, the original HS 9501-9502 were deleted and put under
HS 9503. Therefore, some FTAs have ROOs in detail for 9503, particularly for
dolls and dolls’ parts and accessories.
Some FTAs signed after 2007 adopt the 2007 HS version, and some FTAs
are revised to adopt the new version. For instance, the United States published
its latest revision, Harmonized Tariff Schedule of the United States 2010, which
includes the revised ROOs of FTAs, including NAFTA, USA-Australia,
USA-Singapore, and USA-Chile. 8 However, some FTAs still adopt the 2002 HS
version and contain the ROOs of HS 9501-9502. For example, the EPAs
between Japan and ASEAN members usuall y specify that the ROOs are based
on the 2002 HS version, even though some of them were signed after 2007.(For
further information, please see Table 4.)
(2) Global trade
The world export of toys and games in 2009 valued at US$61 billion, while
the export of China and Hong Kong, China amounted to US$31.5 billion,
accounting for 51.6% of the world export.
8
It is worth noting that although it is said in the report that the ROO has been revised, there are still ROOs for
HS 9501-9502 in the USA-Chile FTA, as per data of WTO and SICE(Organization of American State's
Foreign Trade Information System).
5
(3) Rules of origin
Although toys and games only cover 3 four-digit products, 42 FTA/RTAs
take diverse approaches. The 2002 version of HS Code is still applied in some
FTA/RTAs, and therefore HS 9501-9502 are included. Some FTA/RTAs treat
HS9503-9505 in the same way, but others treat them differently. Table 2
illustrates a general picture of the numbers and the approaches that 42
FTA/RTAs adopt for the products under HS 9503-9505. For example, AUS-NZL
and AUS-CHL are considered as Tariff Shift and/or RVC, which applies to HS
9503 only. Products under HS9504-9505 are required Tariff Shift Only.
Table 2: Pattern of ROOs for HS 9503-9505
HS Code
ROO Approach
Number of 42 FTA/RTAs
Tariff Shift Only
10 9
10 10
RVC Only
1 11
9 12
9503-9505 Tariff Shift and/or RVC
19 13
22 14
General Rule/NA
12 15
1 16
Total
42
42
Among the 42 FTAs, 10 of them take Tariff Shift Only approach, and 1
adopts RVC Only. 19 FTAs employ the approach of Tariff Shift supplemented
by RVC. The rest of the 12 FTAs do not contain specific rules for products under
HS 9503-9505. Among the 12 FTAs, except 1 FTA involves neither any ROO for
these products, nor employs the general rule (classified as N/A), 8 out of them
9
The FTA classified under the indicated approach is CAN -PER, CHL-MEX, CHN-NZL, JPN-MEX,
AUS-THA, NZL-THA, P4, NZL-HKG, KOR-CHL, and KOR-SGP.
10 Id.
11 The FTA classified under the indicated approach is CHN -CHL, but it only applies on HS9503. Since t his
FTA does not contain specific provision for products under HS 9504 -9505, products under these 2 codes can
only apply the general rule with 40% RVC.
12 The FTAs classified under the indicated approach are CHN-CHL, CHN-SGP, AUS-SGP, AUS-Papua New
Guinea, ASEAN, ASEAN-CHN, ASEAN-AUS-NZL, APTA, and NZL-SGP.
13 The FTAs classified under the indicated approach are NAFTA, USA-SGP, USA-CHL, USA-AUS,
USA-KOR, USA-PER, PER-SGP, CAN-CHL, CHN-PER, JPN-MYS, JPN-SGP, JPN-PHL, JPN-CHL,
JPN-BRN, JPN-THA, JPN-Indonesia, AUS-NZL, AUS-CHL, and NZL-MYS.
14 The FTAs classified under the indicated app roach include the 19 FTAs of the previous footnote plus
JPN-VNM, ASEAN-JPN, and ASEAN-KOR.
15 The FTAs classifies under the indicated approach are CHN -HKG, CHN-SGP, JPN-VNM, AUS-SGP,
AUS-Papua New Guinea, ASEAN, ASEAN-CHN, ASEAN-AUS-NZL,ASEAN-JPN, ASEAN-KOR, APTA,
NZL-SGP.
16 The FTA classified under the indicated approach is CHN -HKG, which neither involves any ROO for the
products nor employs the general rule at the moment.
6
adopt RVC Only approach with the level of 35-50% RVC, and 3 of them allow
choosing either CTH or RVC. Thus, if we separate ‘General Rule’ into the two
approaches, i.e. RVC Only and Tariff Shift and/or RVC, then among the 42
FTAs, there are 9 adopting RVC Only, 22 asking for Tariff Shift and/or RVC, 10
FTAs taking Tariff Shift Only, and 1 is N/A.
As for the level of tariff shift, most economies in North America ask for
CC (change from chapter). However, when RVC reaches to a certain level, they
will allow CTH or CTSH. On the contrary, the general rule of 40% RVC or
tariff shift, i.e. CTH or CTSH, is usually employed in East Asian economies.
American economies usually treat different toys and games with different
ROOs. In comparison with the American economies, the General Rule method
or RVC is usually taken in the ROOs of East Asian economies. In Japan, for
example, the ROOs of its FTAs with ASEAN economies usually require CTH or
CTSH+40% RVC, while the ROOs in its FTAs with American economies
require CC or 35-45% RVC. As for Australia and New Zealand, they adopt the
general rule method with Singapore and Papua New Guinea.
When calculating RVC, the methods of “build-up” and “build-down” are
usually applied 17. The former usually asks for 30-35%, and the latter 40-45%.
These 2 methods are usually adopted in North American FTAs, while Eastern
Asian economies usually ask for 40% RVC without specifying build-up or
build-down methods.
Table 3: Pattern of ROOs for HS 9501-9502
HS Code
ROO Approach
Number of FTA/RTAs
9501-9502 18 Tariff Shift Only
(2002 HS
Tariff Shift and/or RVC
17
18
19
1 19
16 20
The methods of calculating RVC build-up or build-down method vary. Different price or cost of the said
product, such as transaction value, net cost, FOB value, etc. are used, depending on economies.
The FTAs that still have specific rules of origin for HS 9501 -9502 are USA-CHL. USA-KOR, USA-PER,
CAN-CHL, CHL-MEX, CHN-CHL, JPN-MEX, JPN-MYS, JPN-SGP, JPN-PHL, JPN-CHL, JPN-BRN,
JPN-THA, JPN-IDN, AUS-THA, NZL-THA, P4, and KOR-CHL.
The FTA classified under the indicated approach is NZL-THA.
7
HS Code
Version)
ROO Approach
Number of FTA/RTAs
RVC Only
1 21
Total
18
18 FTAs are still based on 2002 HS version and have ROOs for products
under HS 9501-9502. Among these 18 FTAs, 1 adopts Tariff Shift only, 1
allows RVC only, and the other 16 FTAs take the approach of Tariff Shift
and/or RVC.
III. Observations And Inputs Made By Member Economies
(1) Korea
As described in the study on the ROO for Machine Tools/Parts and Toys
and Games in Asia-Pacific FTAs, different kinds of ROOs are adopted in
bilateral FTAs among Asia-Pacific economies. These ROOs are the results of a
long period of negotiations to obtain the optimal and balanced co-benefits for
the two economies involved in the FTAs reflecting each party's economic
conditions.
Therefore, adopting the harmonized ROO without considering economic
situations of each economy may break the balanced interests.
More scrutinized and cautious approach, for example how to find desirable
level of percentages of RVC in the APEC region, is needed in introducing the
harmonized ROO to member economies.
(2) Mexico
In reference to footnote 1, the Chile-Mexico ROOs are included in English
language in the Mexico´s REI-WebTR data base since 2010. Therefore, we would like
them to be considered in the study.
20
21
The FTAs classified under the indicated approach are USA-CHL, USA-KOR, USA-PER, CAN-CHL, CHL,
MEX, JPN-MEX, JPN-MYS, JPN-SGP, JPN-PHL, JPN-CHL, JPN-BRN, JPN-THA, JPN-IDN, AUS-THA,
P4, and KOR-CHL.
The FTA classified under the indicated approach is CHN -CHL.
8
i
It has to be clarified that Table 1 is only indicative, since it does not reflect with
accuracy the applicable ROOs under FTA/RTAs. Readers of the study may get a
misleading view if some clarification is not included.
An example of the argument supporting this view is related to NAFTA. According
to Table 1, NAFTA is considered in the “Tariff Shift and/or RVC” ROO pattern,
but this representation of NAFTA is not accurate.
As can be observed in Table 5, the majority of ROO applicable to goods classified
in headings 84.56 through 84.66 is “Tariff Shift Only”. Concrete examples are as
follows: heading 84.56, 84.57, 84.58, 84.60, 84.61, 84.62 and 84.66. Therefore,
some methodological note would have to be available in order to clarify the
reasoning to consider the before mentioned headings as examples of “Tariff Shift
and/or RVC” ROO pattern.
The before mentioned situation would not be solved moving NAFTA to the “Tariff
Shift Only” ROO pattern group, since there are headings such as heading 84.64
through 84.65, among others, whose ROO belongs to the “Tariff Shift and/or
RVC” ROO pattern.
ii
It has to be clarified that Table 2 is only indicative, since it does not reflect with
accuracy the applicable ROOs under FTA/RTAs. Readers of the study may get a
misleading view if some clarification is not included.
An example of the argument supporting this view is related to the AUS-NZ
FTA/RTA. According to Table 2, the AUS-NZ FTA/RTA is considered in the
“Tariff Shift and/or RVC” ROO pattern, but this representation of the AUS-NZ
FTA/RTA is not accurate.
As can be observed in Table 6, the majority of ROO applicable to goods classified
in headings 95.03 through 95.05 is “Tariff Shift Only”. Concrete examples are as
follows: heading 95.04 and 95.05. Therefore, some methodological note would
have to be available in order to clarify the reasoning to consider the before
mentioned cases as examples of “Tariff Shift and/or RVC” ROO pattern. The
situation would not be solved moving the AUS-NZ FTA/RTA to the “Tariff Shift
Only” ROO pattern group, since there are headings whose ROO belongs to the
“Tariff Shift and/or RVC” ROO pattern.
9
Clear criteria is required in order that the reader could know how one FTA/RTA is
to be allocated in one of the ROO patterns.
iii According to Table 2, only 1 FTA/RTA makes use of the “General Rule/NA” ROO
pattern. We wonder if the use of the word “usually” would be appropriate in the
suggested wording to report findings in Table 2, which is highlighted in yellow:
“American economies usually treat different toys and games with different ROOs.
In comparison with the American economies, the General Rule method or RVC is
usually taken in the ROOs of East Asian economies. In Japan for example, the
ROOs in its FTAs with ASEAN economies usually require CTH or CTSH+40%
RVC, while the ROOs in its FTAs with American economies require CC or
35-45% RVC. As for Australia and New Zealand, they adopt the general rule
method with Singapore and Papua New Guinea.”
(3) Hong Kong, China
Table 1 under I(3) and footnote 3
On the preferential ROOs for headings 8456 - 8466 under the Mainland and
Hong Kong Closer Economic Partnership Arrangement (CEPA), the
situation is set out as follows (see items 1343 - 1352 of CEPA ROO table
at http://www.tid.gov.hk/english/cepa/tradegoods/files/ mainland_2011.pdf)
8456, 8457, 8459, 8461-8464 : No CEPA ROO has been developed for the
time being;
8458 : CEPA ROOs (being "metal working and assembling, plus the
fulfillment of value-added content requirement") have been developed for 2
out of the 4 sub-headings;
8460 : CEPA ROO (being "metal working and assembling, plus the
fulfillment of value-added content requirement") has been developed for 1
out of the 8 sub-headings;
8465 : CEPA ROOs (being "metal working and assembling, plus the
fulfillment of value-added content requirement") have been developed for 6
out of the 8 sub-headings; and
10
8466 : CEPA ROO (being "change in tariff heading") has been developed
for 1 out of the 7 sub-headings
Given (i) no ROO has been developed for some of the products; (ii) the
concept of our "value-added content requirement" is not exactly the same as
RVC; and (iii) the ROO for certain goods under HS heading 8466 is in fact
"change in tariff heading", we suggest that the ROOs under CEPA should
not be classified as "RVC Only" as in the draft paper.
We think a possible option is to put the above CEPA ROOs for these
headings under a new miscellaneous category such as
"Others and/or
Tariff Shift Only", with a footnote stating that (i) no ROO has been
developed for some of these headings / some of the subheadings under these
headings; and (ii) where CEPA ROOs are already developed under these
headings, different "ROO Approaches" are adopted for different products.
Table 2 under II(3) and footnote 9
Footnote 9 may be re-cast as "The FTA classified under the indicated
approach is CHN-HKG (i.e. CEPA between China and Hong Kong, China)
which neither involves any ROO for the products nor employs the general
rule at the moment (classified as N/A)."
Table 5
For the information about CEPA at page 15 (CHN-HKG 1 Jan 2004), the
ROO for 8466.9200 is "change in tariff heading" or "CTH" (see item 1352
of
CEPA
ROO
table
at
http://www.tid.gov.hk/english/cepa/tradegoods/files/mainland_2011.pdf)
instead of the requirements described in the table. Besides, we suggest
clarifying that the HS codes quoted therein are China's 2011 tariff codes.
(4) Chile
i
Page 4. The footnote N°5 says that in the HS 2007 of the USA-Chile FTA, there
are still ROOs for HS 9501-9502.
However, in the official version of Chile there are not ROOs for these products.
ii
Page 5: The footnote N°10 and N°11 made reference that RVC is calculated using
11
the adjusted value. However, depending of the FTA could be transaction value,
FOB Value, etc.
It would be useful if you could underline that in these notes.
iii Page 7. It would be useful to include the version translation of 2002 into the 2007
HS version for 8456 to 8466.
iv Page 22: The table reflects the rule in HS 2002 and HS 2007. In order to clarify this
table It would be useful to use 2 columns or indicate what version of the HS is the
document referring.
v
Page 32 and 33: May be it would be useful to add a table with the trade among the
APEC economies.
Table 4: Translation of 2002 HS Version into the 2007 HS Version
for HS 9501 and 9502
2002 HS
version
95010010
95010020
95021000
95029100
95029910
95029920
95029990
95031010
2007 HS
version
Goods
Wheeled toys designed to be ridden by children (for
95030011 example, tricycles, scooters, pedal cars); dolls'
carriages
Parts of wheeled toys designed to be ridden by
95030019 children (for example, tricycles, scooters, pedal
cars); parts of dolls' carriages
95030021 Dolls, whether or not dressed
Garments and accessories thereof, footwear and
95030022
headgear of dolls
95030023 Wigs, dolls
Eyes, dolls (other than those unmounted of glass, of
95030024
heading 70.18)
95030029 Other parts and accessories of dolls
95030031 Toy electric trains
12
2002 HS
version
2007 HS
version
95031020
95030039
95032010
95030041
95032020
95030049
95033010
95030051
95033020
95030059
95034110
95030061
95034120
95030062
95034910
95030062
95034920
95030069
95035010
95030071
95035020
95030079
95036010
95030081
95036020
95030089
95037010
95030091
95037020
95030093
95038010
95030092
95038020
95030099
95039010
95030093
95039020
95030099
Goods
Parts of electric trains; tracks, signals and other
accessories thereof
Reduced-size (scale) model assembly kits, whether
or not working models, excluding those of
subheading 9503.00
Parts and accessories of toys of tariff No.
9503.00.41
Other construction sets and constructional toys
Parts and accessories of toys of tariff No.
9503.00.51
Toys representing animals or non-human creatures,
stuffed
Other toys representing animals or non-human
creatures, not-stuffed
Other toys representing animals or non-human
creatures, not-stuffed
Parts and accessories of toys of tariff No.
9503.00.61 and 9503.00.62
Toy musical instruments and apparatus
Parts and accessories of toys of tariff No.
9503.00.71
Puzzles
Parts and accessories of toys of tariff No.
9503.00.81
Toy guns, put up in sets or outfits; radio
remote-controlled toys, put up in sets or outfits;
other toys, put up in sets or outfits
Toy guns; other radio remote-controlled toys;
inflatable toys; other toys
Radio remote-controlled toys and models,
incorporating a motor; other toys and models,
incorporating a motor
Parts and accessories of toys of tariff No.
9503.00.91, 9503.00.92, 9503.0093
Toy guns; other radio remote-controlled toys;
inflatable toys; other toys
Parts and accessories of toys of tariff No.
9503.00.91, 9503.00.92, 9503.0093
13
Table 5: Rules of Origin for Machine-tools and Parts Thereof
(HS8456-8466)
Agreement
(Date
of
Entry into
Force 22)
NAFTA
(1 Jan 1994)
22
23
Tariff
item
Tariff
only
shift
8456.10,
8456.208456.90,
8458.11,
8458.91,
8460.11,
8460.21,
8460.31,
8460.40.a
a,
8460.90.a
a,
8461.10.a
a,
8461.20.a
a,
8461.30.a
a,
8461.50.a
a,
8461.90.a
a,
A change any
other heading,
except
from
more than one
of
certain
tariff
items
which
are
listed.
Regional
value
content
(RVC) only
Tariff shift supplemented
by RVC
Comments
CTH 23 (except
from
more
than one of
certain tariff
items
which
are listed)
The KOR-USA FTA was signed on 30 Jul 2007 but has not yet entered into force.
CTH denotes a change to the chapter, heading or subheading from any other heading. This means that all
non-originating materials used in the production of the good have undergone a change in tariff classification
at the 4-digit level (i.e. a change in heading ) of HS .
14
Agreement
(Date
of
Entry into
Force 22)
Tariff
item
8462.21,
8462.31,
8462.41,
8462.91.a
a,
8462.99.a
a
8457
8458.19,
8458.99,
8459.10,
8459.29,
8459.39,
8459.59,
8459.69,
8459.70,
8460.19,
8460.29,
8460.39,
8460.40,
8460.90,
8461.10,
8461.20,
8461.30,
8461.40,
8461.50,
8461.90,
8462.10,
8462.29,
8462.39,
8462.49,
8462.91,
8462.99,
8463
Tariff
only
shift
Regional
value
content
(RVC) only
A change from
any
other
heading,
except
from
heading 84.59
or more than
one of the
following:
subheading
8413.50
through
8413.60,
Canadian
tariff
item
8466.93.11 or
8466.93.91,
U.S.
tariff
item
8466.93.10A,
8466.93.50A
or
8466.93.70A
or
Mexican
tariff
item
8466.93.04,
subheading
8501.32
or
8501.52,
subheading
8537.10.
A change from
any
other
heading,
except
from
some certain
tariff
items
which
are
listed.
Tariff shift supplemented
by RVC
Comments
CTH (except
from 8459 or
more than one
of
certain
tariff
items
which
are
listed)
CTH (except
from
some
certain tariff
items
which
are listed)
15
Agreement
(Date
of
Entry into
Force 22)
USA-SGP
(1 Jan 2004)
Tariff
item
Tariff
only
8459.21,
8459.31,
8459.408459.51,
8459.61,
8459.70.a
a
Tariff shift supplemented
by RVC
Comments
A change from
any
other
heading,
except
from
more than one
of
certain
tariff
items
which
are
listed.
A change from more than
one of certain tariff items
which are listed, whether or
not there is also a change
from any other heading,
provided there is a regional
value content of not less
than: (a) 60 % where the
transaction value method is
used, or (b) 50 % where the
net cost method is used.
8464,
8465
A change from
any
other
heading,
except from a
certain
subheading.
A change from a certain
subheading, whether or not
there is also a change from
any other heading, provided
there is a RVC of not less
than: (a) 60 % where the
transaction value method is
used, or
(b) 50 % where the net cost
method is used.
CTH (except
from
more
than one of
certain tariff
items
which
are
listed)
Or
CTSH 24 + 60%
RVC
(V)
Or
CTSH+50%
RVC (C)
CTH (except
from a certain
subheading)
Or
CTSH+
60%
RVC (V) Or
CTSH+50%
RVC (C)
8466
Change from
any
other
heading.
8466
CTH
Change from any other
heading, including another
heading within that group,
provided there is a RVC of
not less than 65% based on
the build-down method.
A change from
any
other
heading.
A change from
any
other
heading.
CTH+65%
RVC (D)
CTH
Or
No required change to
heading 8466, provided that
there is a RVC of not less
than 35% based on the
build-up method or 45%
based on the build-down
method, whether or not there
is a change in tariff
classification.
A change to heading 8456
through 8463 from any other
heading, provided there is a
RVC of not less than 65%
based on the build-down
method.
84568463
84648465
24
Regional
value
content
(RVC) only
84568463
84648465
USA-CHL
(1 Jan 2004)
shift
A change to
heading 8464
through 8465
from any other
heading,
including
CTH
Or
35% RVC (U)
Or
45% RVC (D)
CTH+65%
RVC (D)
CTH
CTSH denotes a change to the chapter, heading or subheading from any other subheading. This means that
all non-originating materials used in the production of the good have undergone a change in tariff
classification at the 6-digit level (i.e. a change in subheading) of HS.
16
Agreement
(Date
of
Entry into
Force 22)
Tariff
item
Tariff
only
another
heading
within
group.
shift
Regional
value
content
(RVC) only
84568463
84648465
A change to heading 8466
from any other heading,
provided that there is a RVC
of not less than 35% based
on the build-up method or
45%
based
on
the
build-down method.
A change from any other
heading, provided that there
is a RVC of not less than
60% under the build-down
method.
A change from any other
heading, provided that there
is a RVC of not less than
55% under the build-down
method.
84578461,
8463
A change from
any
other
heading.
A change from any other
heading, provided that there
is a RVC of not less than
35% under the build-up
method or 45% under the
build-down method.
A change from any other
heading, provided that there
is a RVC of not less than
65% under the build-down
method.
84568463
84648465
CTH+65%
RVC (D)
CTH+35%
RVC (U)
Or
CTH+45%
RVC (D)
CTH+60%
RVC (D)
CTH+55%
RVC (D)
CTH
8466
USA-PER
(1
Feb
2009)
CTH+35%
RVC (U)
Or
CTH+45%
RVC (D)
CTH
8456,
8462
84648465
A change to heading 8466
from any other heading,
provided that there is a RVC
of not less than 35% based
on the build-up method or
45%
based
on
the
build-down method.
A change to heading 8456
through 8463 from any other
heading, provided there is a
RVC of not less than 65%
based on the build down
method.
A change to
heading 8464
through 8465
from any other
heading.
8466
USA-KOR
(Signed on
30
June
2007
but
not
yet
entered into
force)
Comments
that
8466
USA-AUS
(1 Jan 2005)
Tariff shift supplemented
by RVC
A change from
any
other
heading.
CTH+35%
RVC (U)
Or
CTH+45%
RVC (D)
CTH+65%
RVC (D)
CTH
8466
A change from any other
heading, provided that there
is a RVC of not less than
35% under the build-up
method or 45% under the
build-down method.
17
CTH+35%
RVC (U)
Or
CTH+45%
RVC (D)
Agreement
(Date
of
Entry into
Force 22)
PER-SGP
(1
Aug
2009)
CAN-PER
(1
Aug
2009)
CAN-CHL
(5
Jul
1997) 25
Tariff
item
Tariff
only
8456
A change from
any
other
heading.
8457.10,
8460.29,
8461.50,
8462.29,
8464.20,
8466.10,
8466.20,
8466.91,
8466.93,
8466.94
8457.208460.19,
8460.318461.40,
8461.908462.21,
8462.318464.10,
8464.908465.99,
8466.30,
8466.92
84568466
A change from
any
other
subheading
8456.10,
8463
8458.11,
8458.91,
8459.21,
8459.31,
8459.408459.51,
8459.61,
8459.70.a
a,
8460.11,
8460.21,
8460.31,
8460.40.a
a,
8460.90.a
a,
25
shift
Regional
value
content
(RVC) only
A change from
any
other
subheading
Change from
any
other
heading.
Change from
any
other
heading,
except
from
more
than
TWO
of
certain tariff
items
which
are listed.
Change from
any
other
heading,
except
from
more
than
THREE
of
certain tariff
items
which
are listed.
Tariff shift supplemented
by RVC
Comments
Or
No
change
in
tariff
classification is required,
provided that there is a
qualifying value content of
not less than 45%.
Or
No
change
in
tariff
classification is required,
provided that there is a
qualifying value content of
not less than 40%.
CTH
Or
45% RVC
Or
No
change
in
tariff
classification is required,
provided that there is a
qualifying value content of
not less than 45%.
CTSH
Or
45% RVC
CTSH
Or
40% RVC
CTH
CTH
CTH
On January 1, 2005, Canada and Chile implemented technical rectifications to the CCFTA rules of origin
and regulations to take into account changes in the current tariff schedules of both economies that are the
result of Amendments to the Harmonized System that came into effect on January 1, 2002 .
18
Agreement
(Date
of
Entry into
Force 22)
Tariff
item
8461.20.a
a,
8461.30.a
a,
8461.50.a
a,
8461.90.a
a
8458.19,
8458.99,
8459.10,
8459.29,
8459.39,
8459.59,
8459.69,
8459.70,
8460.19,
8460.29,
8460.39,
8460.40,
8460.90,
8462.10,
8462.29,
8462.39,
8462.49,
8462.91,
8462.99
8461.20,
8461.30,
8461.40,
8461.50,
8461.90
8462.21,
8462.31,
8462.41,
8462.91.a
a,
8462.99.a
a
8464
8465
Tariff
only
shift
Regional
value
content
(RVC) only
Tariff shift supplemented
by RVC
Comments
Change from
any
other
heading,
except
from
more
than
ONE
of
certain tariff
items
which
are listed.
CTH
Change from
any
other
heading,
except from a
certain tariff
item which is
listed.
8466.93.aa
Change from
any
other
heading,
except
from
more
than
FOUR
of
certain tariff
items
which
are listed.
A change from
any
other
heading,
except
from
subheading
8466.91.
CTH
CTH
A change from 8466.91,
whether or not there is also a
change from any other
heading, provided there is a
RVC of not less than: (a)
35% where the transaction
value method is used, or (b)
25% where the net cost
method is used.
A change to heading 84.65
from subheading 8466.92,
whether or not there is also a
change from any other
heading, provided there is a
RVC of not less than: (a)
35% where the transaction
value method is used, or (b)
25% where the net cost
method is used.
A change from
any
other
heading,
except
from
subheading
8466.92.
19
CTH
Or
CTSH+
35%
RVC (V) Or
CTSH+25%
RVC (C)
CTH
Or
CTSH+
35%
RVC (V) Or
CTSH+25%
RVC (C)
Agreement
(Date
of
Entry into
Force 22)
CHL-MEX
(1
Aug
1999)
Tariff
item
Tariff
only
8466
A change from
any
other
heading.
A change from
any
other
heading,
except
from
heading 8466.
8456.108456.99,
8458.198458.99,
8459.318459.70,
8460.118460.40,
8461.208461.40,
8461.90,
8462.10,
84638465
8457,
8458.11,
8459.108459.29,
8460.90,
8461.50,
8462.218462.99
8466
CHN-CHL
(1
Oct
2006)
84568466
CHN-NZL
(1
Oct
2008)
84568465
8466
CHN-PER
(1
Mar
2010)
CHN-HKG
(1
Jan
2004) 27
84568466
shift
Regional
value
content
(RVC) only
Tariff shift supplemented
by RVC
Comments
CTH
Or
A change from heading
8466, whether or not there is
also a change from any other
heading, provided there is a
RVC of not less than (a) 50%
where the transaction value
method is used, or (b) 40%
where the net cost method is
used.
CTH
Or
CTSH+
50%
RVC (V) Or
CTSH+40%
RVC (C)
A change from
any to other
heading,
except
from
8466.93.aa.
CTH
A change from
any to other
heading,
except
from
8466.94.aa.
A change from
any
other
heading.
CTH
CTH
Change from any other
heading provided there is a
RVC of not less than 40%.
Change from
any
other
heading.
A change from
any
other
heading.
No
specific
provisions.
The
general
rule is 40%
RVC. 26
CTH+40%
RVC
CTH
CTH
84568465
Not available.
Only
8458.1100,
8458.1900,
8460.3900,
8465.1000,
26
Free Trade Agreement Between the Government of the People Republic of China and the Government of the
Republic of Chile, Article 15 (c): “For the purpose of this Agreement, a good shall be regarded as originating
in China or in Chile when (c) The good is produced in the territory of one or both Parties, using
non-originating materials that conform to a regional value content not less than 40%, except for the goods
listed in the Annex 3, which must comply with the requirements specified therein.”
27 This is based on the 31 Dec 2010 updated version.
20
Agreement
(Date
of
Entry into
Force 22)
Tariff
item
8466
CHN-SGP
(1 Jan 2009)
84568466
JPN- MEX
(1
Apr
2005)
84568458
8459.10-8
459.70
84608463
8464
8465
8466
JPN-MYS
(13
Jul
2006)
84568466
Tariff
only
shift
Regional
value
content
(RVC) only
Tariff shift supplemented
by RVC
Comments
8465.9100,
8465.9200,
8465.9300,
9465.9500,
8465.9900 are
required to do
metal working
and
assembling,
and to fulfill
the
value-added
content
requirement
(≧ 30%).
CTH
(Only
8466.9200)
8466.9200-Change
in
Tariff
Heading
No
specific
provision. The
general rule is
40% RVC.
CTH
A change to
heading 8456
through 8458
from any other
heading.
A change to
subheading
8459.10
through
8459.70 from
any
other
heading.
Or
A change to subheading
8459.10 through 8459.70
from any other subheading,
whether or not there is also a
change from any other
heading, provided there is a
RVC of not less than 50%.
A change to
heading 8460
through 8463
from any other
heading.
A change to
heading 8464
from any other
heading,
except
from
subheading
8466.91.
A change to
heading 8465
from any other
heading,
except
from
subheading
8466.92.
A change to
heading 8466
from any other
heading
A change to
subheading
8401.10
CTH
Or
CTSH+50%
RVC
CTH
Or
A change to heading 84641
from subheading 8466.91,
whether or not there is also a
change from any other
chapter, provided there is a
RVC of not less than 50%.
A change to heading 8465
from subheading 8466.92,
whether or not there is also a
change from any other
heading, provided there is a
RVC of not less than 50%.
CTH
Or
CTSH+50%R
VC
CTH
Or
CTSH+50%R
VC
CTH
No required change in tariff
classification to subheading
8401.10 through 8485.90,
21
CTSH
Or
40% RVC
Agreement
(Date
of
Entry into
Force 22)
Tariff
item
JPN-SGP 28.
(30
Nov
2002)
84568466
JPN-PHL
(11
Dec
2008)
84568466
JPN-CHL
(3
Sep
2007)
84568465
8466
JPN-BRN
(31
Jul
2008)
84568466
JPN-THA
(1
Nov
2007)
84568466
JPN-IDN
(1 Jul 2008)
84568466
28
Tariff
only
shift
Regional
value
content
(RVC) only
through
8485.90 from
any
other
subheading
A change to
subheading
8201.10
through
8215.99 from
any
other
subheading.
A change to
subheading
8455.90
through
8466.94 from
any
other
heading.
A change to
heading 8456
through 8465
from any other
heading,
except
from
heading 8466.
Tariff shift supplemented
by RVC
Comments
provided
there
is
a
qualifying value content of
not less than 40%.
A change to
heading 8466
from any other
heading.
A change to
subheading
8401.10
through
8473.29 from
any
other
subheading.
A change to
subheading
8455.90
through
8466.94 from
any
other
heading.
A change to
subheading
8401.10
through
8485.90 from
any
other
subheading.
Or
No required change in tariff
classification to subheading
8401.10 through 8473.29,
provided that there is a
qualifying value content of
not less than 40%.
No required change in tariff
classification to subheading
8455.90 through 8466.94,
provided that there is a
qualifying value content of
not less than 40%.
CTSH
Or
40% RVC
Or
No required change in tariff
classification to heading
8456 through8465, provided
there is a qualifying value
content of not less than 45%
when the build-down method
is used, or of not less than
30% when the build-up
method is used.
CTH
Or
45% RVC(D)
Or
30% RVC(U)
CTH
Or
40% RVC
CTH
No required change in tariff
classification to subheading
8401.10 through 8473.29,
provided
there
is
a
qualifying value content of
not less than 40%.
CTSH
Or
40% RVC
No required change in tariff
classification to subheading
8455.90 through 8466.94,
provided that there is a
qualifying value content of
not less than 40%.
CTH
Or
40% RVC
No required change in tariff
classification to subheading
8401.10 through 8485.90,
provided that there is a
qualifying value content of
not less than 40% .
CTSH
Or
40% RVC
JSEPA was reviewed in 2007, and its product specific rule was also revised. The new rule came into effect
on 1 Jan 2008. Before the revision, there was no specific provision for 8456-8466, and the general rule (60%
RVC) was applied. JSEPA Article 23.5 (b): “[A] material shall be considered to have satisfied the
requirements of this subparagraph if (i) the content of the value of the material that can be attribute to one or
both of the Parties is not less than 60% of the total value of the material; and the material has undergone it s
last production or operation in the territory of either Party .”
22
Agreement
(Date
of
Entry into
Force 22)
JPN-VNM
(1
Oct
2009)
Tariff
item
AUS-THA
(1 Jan 2005)
84568463
8466
AUS-SGP
(28
Jul
2003)
84568466
AUS-NZL
(G)
(1
Jan
1983) 29
84568465
AUS-CHL
(6
Mar
2009)
84568465
8466
8466
AUS-PNG
(1
Feb
1977)
84568466
ASEAN
(28
Jan
1992)
ASEAN-CH
N (G)
(1 Jan 2005)
84568466
30
31
shift
Regional
value
content
(RVC) only
Tariff shift supplemented
by RVC
84568466
84648465
29
Tariff
only
Change from any heading,
provided there is a RVC of
not less than 45%.
A change from
any
other
heading.
A change from
any
other
heading.
Change
any
heading.
Change
any
heading.
from
other
Change
any
heading.
Change
any
heading.
from
other
Comments
No
specific
provisions.
The
general
rules are 40%
RVC or CTH.
CTH+45%
RVC
CTH
Or
A RVC of not less than 45
%, whether or not there is a
change
in
tariff
classification.
CTH
Or
45% RVC
No
specific
provision. The
general rule is
50% RVC.
CTH
from
other
Or
A RVC of not less than 35%
based
on
the
build-up
method or 45% based on the
build-down method, whether
or not there is a change in
tariff classification.
CTH
Or
35% RVC (U)
Or
45% RVC (D)
CTH
from
other
Or
A RVC of not less than 40%
whether or not there is a
change
in
tariff
classification.
Change from
any
other
subheading.
40% RVC
84568466
CTH
Or
40% RVC.
No
specific
provision.
The
general
rule is 50%
RVC 30.
CTSH
Or
40% RVC.
No
specific
provision.
The
general
rule is 40%
RVC. 31
The new Rule of Origin went into effect on 1 Jan 2007.
Free Trade Agreement Between Australia and Papua New Guinea, Article 4.1 (b)( ii)(C): “Partly on such
material and partly on such other items of factory cost, is not less than one-half of the factory or works costs
at the time of exportation.”
ASEAN and China have only adopted Product Specific Rules (PSR) for the following products so far:
textiles and apparel, plastic products, footwear products, iron and steel products, preserved fish canned
products, palm oil and ice cream, and jewelry products.
23
Agreement
(Date
of
Entry into
Force 22)
ASEANAUS-NZL
(1 Jan 2010)
Tariff
item
ASEAN-JP
N
(1
Dec
2008)
84568466
ASEAN-KO
R
(Jun 2007)
84568466
Asia Pacific
Trade
Agreement
(APTA) 32
(17
Jun
1976)
NZL-THA
(1 Jul 2005)
84568466
P4
(Brunei,
Chile, New
Zealand,
Singapore)
(28
May
2006)
84568466
NZL-SGP
(1 Jan 2001)
84568466
NZL-MYS
(1
Aug
2010)
NZL-HKG
(1 Jan 2011)
84568466
33
shift
Regional
value
content
(RVC) only
Tariff shift supplemented
by RVC
84568466
84568466
Comments
No
specific
provision. The
general rules
are 40% RVC
of FOB, and
the
final
process
of
production is
performed
within a Party.
No
specific
provision. The
general rule is
40% RVC or
CTH.
No
specific
provision. The
general rule is
40%
RVC
(FOB) or CTH.
No
specific
provision. The
general rule is
45% RVC 33.
Change from
any
other
heading.
Change from
any
other
heading,
including
another
heading
within
that
group
CTH
CTH
No
specific
provisions.
The
general
rule is 40%
RVC.
CTH
84568465
8466
32
Tariff
only
Change from any other
heading provided there is a
RVC of not less than 40%.
Change from
any
other
heading.
CTH+40%
RVC
CTH
The member economies are Bangladesh, China, India, Republic of Korea, Lao People’s Democratic
Republic, and Sri Lanka.
APTA Annex II, Rule 3 (a): “products worked on or processed as a result of which t he total value of the
materials, parts or produce originating from non -Participating States or of undetermined origin used does
not exceed 55% of the f.o.b. value of the products produced or obtained and the final process of manufacture
is performed within the territory of the exporting Participating State shall be eligible for preferential
concessions.”
24
Agreement
(Date
of
Entry into
Force 22)
KOR-CHL
(1
Apr
2004) 34
KOR-SGP
(2
Mar
2006)
Tariff
item
Tariff
only
84568465
A change to
heading 8456
through 8465
from any other
heading,
except
from
heading 8466.
8466
A change to
heading 8466
from any other
heading.
Regional
value
content
(RVC) only
8465
8466
Tariff shift supplemented
by RVC
Comments
Or
A change to heading 8456
through 8465 from heading
8466, provided there is a
RVC of not less than 45%
when the build-down method
is used, or of not less than
30% when the build-up
method is used.
CTH
Or
CTH+45%
RVC (D)
Or
CTH+35%
RVC (U)
CTH
8456.108456.30,
84578463
8456.90
8464
34
shift
A change from
any
other
heading
except
from
8466.91
A change from
any
other
heading
except
from
8466.92
A change from
any
other
heading.
A change from any other
heading provided it has a
RVC of not less than 50%.
CTH+50%
RVC
A change from any other
heading provided it has a
RVC of not less than 45%.
Or
A change from any other
heading provided it has a
RVC of not less than 50%.
CTH+45%
RVC
Or
A change from any other
heading provided it has a
RVC of not less than 50%.
CTH
Or
CTH+50%
CTH
Or
CTH+50%
CTH
The basis for tariff classification in this Specific Rules of Origin is the Harmonized System as amended on
1 Jan 2007.
25
Table 6: Rules of Origin for Toys, Games (HS 9503-9505 35)
Agreement
(Date
of
Entry
into
Force)
NAFTA
(1 Jan 1994)
Tariff
item
Tariff
only
95039505
A change to
subheading
9503.00
through
9505.90
from
any
other chapter
USA-SGP
(1 Jan 2004)
9503
A change to
heading
9503
from
any
other
chapter
9504.109504.30
A change to
subheading
9504.10
through
9504.30
from
any
other
subheading,
including
another
subheading
within that
group.
Change from
any
other
subheading.
CTSH
Change from
any
other
subheading,
including
another
subheading
within that
group.
A
change
CTSH
9504.409504.90
9505
USA-CHL
35
36
9501,
shift
Regional value
content (RVC)
only
Tariff shift supplemented by
RVC
Comments
Or
A change to a good of any of
subheadings 9503.00 through
9505.90 from within that
subheading
or
any other
subheading within chapter 95,
including another subheading
within that group, whether or
not there is also a change from
any other chapter, provided
there is a RVC of not less than:
1) 60% where the transaction
value (V) method is used, or
2) 50 % where the net cost ©
method is used.
Or
No required change in tariff
classification provided there is
a RVC of not less than
35% based on the build-up
method or
45% based on the build-down
method.
CC 36
Or
CTSH+60%
RVC (V)
Or
CTSH+50%
RVC ©
CC
Or
35%
RVC(U)
Or
45%
RVC(D)
CTSH
CC
Due to the amendment of the Har monized System Nomenclature in 2007, the original HS 9501 -9502 in the
2002 version were deleted and put under HS 9503 in the 2007 version. Some FTAs have either adopted the
latest HS version in their FTAs or revised their ROO, while still some FTAs adopt the 2002 version.
Therefore, in this annex, ROOs of HS 9501 -9502 are still shown in some FTAs.
CC denotes a change to the chapter, heading or subheading from any other chapter. This means that all
non-originating materials used in the production of the good have undergone a change in tariff classification
at the 2-digit level (i.e. a change in chapter) of HS.
26
Agreement
(Date
of
Entry
into
Force)
(1 Jan 2004)
Tariff
item
Tariff
only
95049505
from
any
other
chapter.
A change to
subheading
9502.10
from
any
other
heading.
9502.10
9502.919502.99
9503 (A)
9503 (B)
USA-AUS
(1 Jan 2005)
95039505
shift
Regional value
content (RVC)
only
A change to
subheading
9502.91
through
9502.99
from
any
other
heading.
A change to
dolls,
whether
or
not dressed,
of
heading
9503
from
any
other
good
or
heading
9503 or from
any
other
heading.
A change to
dolls’ parts
and
accessories
of
heading
9503
from
any
other
good
of
heading
9503, except
from
dolls
whether
or
not dressed,
or from any
other
heading. Or
a change to
any
other
good
of
heading
9503
from
any
other
chapter.
A
change
from
any
other
chapter.
Tariff shift supplemented by
RVC
Comments
Or
A
change
to
subheading
9502.10
from
any
other
subheading, provided that there
is a RVC of not less than
1) 35% when the build-up
method is used or
2) 45% when the build-down
method is used.
CTH
Or
CTSH+35%
RVC (U)
Or
CTSH+45%
RVC (D)
CTH
Or
A change to dolls, whether or
not dressed, of heading 9503
from
dolls’
parts
and
accessories of heading 9503,
provided that there is a RVC of
not less than 35% based on the
build-up method or 45% based
on the build-down method.
A) CTH
Or
CTSH+35%
RVC (U)
Or
CTSH+45%
RVC (D)
B) CC or
CTH
CTSH
Or
CC
CC
9503
A change to dolls’, whether or
not dressed, of heading 9503
from
dolls’
parts
and
accessories of heading 9503,
27
CTSH+35%
RVC (U)
Or
CTSH+45%
Agreement
(Date
of
Entry
into
Force)
Tariff
item
9503
USA-KOR
(Signed on 30
June 2007 but
not
yet
entered into
force)
95019505
USA-PER
(1 Feb 2009)
95019505
PER-SGP
(1 Aug 2009)
9503
9504
9505
CAN-PER
(1 Aug 2009)
CAN-CHL
(5 Jul 1997)
Tariff
only
shift
Regional value
content (RVC)
only
A change to
dolls’ parts
and
accessories
of
heading
9503
from
any
other
heading.
A change to
subheading
9501.00
through
9505.90
from
any
other
subheading.
A change to
subheading
9501.00
through
9505.90
from
any
other
subheading.
A
change
from
any
other
chapter.
Tariff shift supplemented by
RVC
Comments
provided that there is a RVC of
not less than 35% based on the
build-up method or 45% based
on the build-down method.
RVC (D)
CTH
A
change
from
any
other
heading.
A
change
from
any
other
chapter.
Or
No
change
in
tariff
classification
is
required,
provided that there is a RVC of
not less than 35% based on the
build-up method or 45% based
on the build-down method.
CTSH
Or
35%
RVC(U)
Or
45%
RVC(D)
Or
No
change
in
tariff
classification
is
required,
provided that there is a RVC of
not less than 35% under the
build-up method or 45% under
the build-down method.
CTSH
Or
35%
RVC(U)
Or
45%
RVC(D)
Or
No
change
classification
provided that
qualifying value
less than 45%.
Or
No
change
classification
provided that
qualifying value
less than 40%.
Or
No
change
classification
provided that
qualifying value
less than 50%.
in
CC
Or
45% RVC
in
CTH
Or
40% RVC
in
CC
Or
45% RVC
tariff
is
required,
there is a
content of not
tariff
is
required,
there is a
content of not
tariff
is
required,
there is a
content of not
9503-
Change from
within that
heading
or
any
other
heading.
CTH
9504.109505.90
Change from
within
any
one
these
subheadings
or any other
subheading.
Change from
any
other
chapter.
Change from
CTSH
9501,
95039505
9502.10
CC
Or
28
CC
Agreement
(Date
of
Entry
into
Force)
Tariff
item
Tariff
only
shift
Regional value
content (RVC)
only
any
other
chapter.
9502.919502.99
CHL-MEX (1
Aug 1999)
CHN-CHL
(1 Oct 2006)
CHN-NZL
(1 Oct 2008)
9501,
9502.919502.99,
95039505
9502.10
95049505
CHN-PER
(1 Mar 2010)
95039505
CHN-HKG
(1 Jan 2004)
CHN-SGP
(1 Jan 2009)
95039505
95039505
JPN- MEX
(1 Apr 2005)
9501
9502.10
Comments
A
change
to
subheading
9502.10
from
subheading
9502.91
through
9502.99,
whether or not there is also a
change from any other chapter,
provided there is a RVC of not
less than 60% where the
transaction value (V) method is
used, or 50% where the net cost
(C) method is used.
Or
CTSH+60%
RVC(V)
Or
CTSH+50%
RVC (C)
A
change
from
any
other
heading.
A
change
from
any
other
chapter.
CTH
CC
A
change
from
any
other
chapter.
95019503
95049505
9503
Tariff shift supplemented by
RVC
Or
A change from subheading
9502.91
through
9502.99,
whether or not there is also a
change from any other chapter,
provided there is a RVC of not
less than (a) 50% where the
transaction value (V) method is
used, or (b) 40% where the net
cost (C) method is used.
50%RVC
CC
Or
CTSH+50%
RVC(V)
Or
CTSH+40%
RVC (C)
50% RVC
No specific
provisions.
The general
rule is 40%
RVC.
CC
Change from
any
other
chapter
Change from
any
other
heading.
A
change
from
any
other
chapter.
CTH
Or
No
change
in
tariff
classification
is
required,
provided there is a RVC of not
less than 50%.
CC
Or
50% RVC
N/A
No specific
provision.
The general
rule is 40%
RVC.
A change to
heading
9501
from
any
other
chapter.
A change to
subheading
CC
Or
A
29
change
to
subheading
CC
Or
Agreement
(Date
of
Entry
into
Force)
Tariff
item
Tariff
only
shift
Regional value
content (RVC)
only
9502.10
from
any
other
chapter.
9502.91-9
502.99
95039505
A change to
subheading
9502.91
through
9502.99
from
any
other
heading.
A change to
heading
9503 through
9505
from
any
other
chapter.
A change to
subheading
9501.00
through
9508.90
from
any
other
subheading
A
change
from
any
other
subheading.
JPN-MYS
(13 Jul 2006)
95019505
JPN-SGP 37.
(30
Nov
2002)
95019505
JPN-PHL
(11 Dec 2008)
95019505
A
change
from
any
other
chapter.
JPN-CHL
(3 Sep 2007)
9501
A change to
heading
9501
from
any
other
chapter.
9502.10
A change to
subheading
9502.10
from
any
other
chapter.
37
Tariff shift supplemented by
RVC
Comments
9502.10
from
subheading
9502.91
through
9502.99,
whether or not there is also a
change from any other chapt er,
provided there is a RVC of not
less than 50%.
CTSH+50%
RVC
CTH
CC
Or
No required change in tariff
classification to subheading
9501.00
through
9508.90,
provided there is a qualifying
value content of not less than
40%.
CTSH
Or
40% RVC
No required change in tariff
classification to subheading
9501.00
through
9508.90,
provided that there is a
qualifying value content of not
less than 40%.
Or
No required change in tariff
classification to heading 9501
through 9505, provided that
there is a qualifying value
content of not less than 40%.
Or
No required change in tariff
classification to heading 9501,
provided there is a qualifying
value content of not less than
45% when the Build-down
method is used, or of not less
than 30% when the Build-up
method is used.
Or
No required change in tariff
classification to subheading
9502.10, provided there is a
qualifying value content of not
less than 45% when the
Build-down method is used, or
CTSH
Or
40% RVC
CC
Or
40% RVC
CC
Or
45%
RVC(D)
Or
30%
RVC(U)
CC
Or
45%
RVC(D)
Or
30%
RVC(U)
JSEPA was reviewed in 2007, and its product specific rule was also revised. The new rule came into effect
on 1 Jan 2008. However, it is still based on the Harmonized System (HS) code amended on 1 Jan 2002 (the
2002 version).
30
Agreement
(Date
of
Entry
into
Force)
Tariff
item
Tariff
only
shift
Regional value
content (RVC)
only
Tariff shift supplemented by
RVC
Comments
of not less than 30% when the
Build-up method is used.
9502.91-9
502.99
95039505
A change to
subheading
9502.91
through
9502.99
from
any
other
heading.
A change to
heading
9503 through
9508
from
any
other
chapter.
JPN-BRN
(31 Jul 2008)
95019505
JPN-THA
(1 Nov 2007)
95019505
JPN-IDN
(1 Jul 2008)
95019505
JPN-VNM
(1 Oct 2009)
95039505
AUS-THA
(1 Jan 2005)
9501
9503.70-9
503.90
Change from
any chapter.
9502.10
Change from
any chapter.
9502.91
9502.99
Change from
any
other
CTH
A change to
subheading
9501.00
through
9508.90
from
any
other
subheading.
A change to
heading
9501 through
9508
from
any
other
heading.
A change to
subheading
9501.00
through
9508.90
from
any
other
subheading.
Or
No required change in tariff
classification to heading 9503
through 9508, provided there is
a qualifying value content of
not less than 45% when the
Build-down method is used, or
of not less than 30% when the
Build-up method is used.
Or
No required change in tariff
classification to subheading
9501.00
through
9508.90,
provided there is a qualifying
value content of not less than
40%.
CC
Or
45%
RVC(D)
Or
30%
RVC(U)
No required change in tariff
classification to heading 9501
through 9508, provided that
there is a qualifying value
content of not less than 40%.
CTH
Or
40% RVC
No required change in tariff
classification to subheading
9501.00
through
9508.90,
provided that there is a
qualifying value content of not
less than 40% .
CTSH
Or
40% RVC
CC
Or
40% RVC
No specific
provisions.
The general
rules is 40%
RVC
or
CTH.
CC
Change to subheading 950210
from
subheading
950291
through 950299, whether or not
there is also a change from any
other chapter provided there is
a RVC of not less than 45
percent.
CC
Or
45% RVC
CTH
31
Agreement
(Date
of
Entry
into
Force)
AUS-SGP
(28 Jul 2003)
AUS-NZL
(G)
(1 Jan 1983)
AUS-CHL
(6 Mar 2009)
Tariff
item
Tariff
only
9503.41
9503.49
9503.10
9503.20
9503.50
9503.60
95049505
95039505
heading.
9503
Change
to
heading
9503
from
any
other
heading.
95049505
Change from
any
other
subheading.
Change from
any
other
heading.
9503
95049505
AUS-PNG
(1 Feb 1977)
95039505
ASEAN
(28 Jan 1992)
95039505
ASEAN-CHN
(G)
(1 Jan 2005 )
95039505
ASEANAUS-NZL
(1 Jan 2010)
95039505
ASEAN-JPN
(1 Dec 2008)
95039505
shift
Regional value
content (RVC)
only
Tariff shift supplemented by
RVC
Change from
any
other
subheading.
Comments
CTSH
Or
A RVC of not less than 35%
based on the build-up method
or
45%
based
on
the
build-down method, whether or
not there is a change in tariff
classification.
Or
A RVC of not less than 40%
whether or not there is a change
in tariff classification.
Change from
any
other
subheading.
No specific
provision.
The general
rule is 50%
RVC.
CTH
Or
35%
RVC
(U)
Or
45%
RVC
(D)
CTSH
CTH
Or
40% RVC.
CTSH
No specific
provision.
The general
rule is 50%
RVC.
No specific
provision.
The general
rule is 40%
RVC.
No specific
provision.
The general
rule is 40%
RVC.
No specific
provision.
The general
rules
are
40% RVC of
FOB, and the
final process
of
production is
performed
within
a
Party.
No specific
provision.
The general
rule is 40%
32
Agreement
(Date
of
Entry
into
Force)
Tariff
item
ASEAN-KOR
(Jun 2007)
95039505
APTA
(17 Jun 1976)
95039505
NZL-THA
(1 Jul 2005)
9501
P4
(Brunei,
Chile,
New
Zealand,
Singapore)
(28
May
2006)
9502,
9503.419503.90,
9503.70,
9503.80,
9503.90,
95049505
9503.10,
9503.20,
9503.30,
9503.50,
9503.60
9501
9503
9505
9504
9503
Comments
RVC
or
CTH.
No specific
provision.
The general
rule is 40%
RVC (FOB)
or CTH.
No specific
provision.
The general
rule is 45%
RVC.
CC
CTH
CTSH
Change from
any
other
chapter.
Change from
any
other
heading.
Change from
any
other
chapter.
NZL-MYS
(1 Aug 2010)
Tariff shift supplemented by
RVC
Change from
any
other
subheading.
9502.91
9502.99
95039505
Regional value
content (RVC)
only
Change from
any
other
chapter.
Change from
any
other
heading.
Change from
any
other
heading.
NZL-SGP
(1 Jan 2001)
38
shift
9502.10
95039505
NZL-HKG
(1 Jan 2011)
Tariff
only
Or
A change of chapter is not
required provided there is a
RVC of not less than 45%.
Or
A change of chapter is not
required provided there is a
RVC of not less than 45%.
CC
Or
45% RVC
CTH
Or
45% RVC
CTH
CC
No specific
provisions.
The general
rule is 40%
RVC.
CTH
QVC (40) 38
CTH
Change from
any
other
chapter.
CTH
Or
40% RVC
CC
QVC(40) means that the good must have a qualifying value con tent of not less than 40% as calculated under
Article 3.4
33
Agreement
(Date
of
Entry
into
Force)
KOR-CHL
(1 Apr 2004)
Tariff
item
Tariff
only
95049505
Change from
any
other
heading.
A
change
from
any
other
heading.
9501,
9502.919502.99,
9504.209504.40,
9505
9502.10
9503,
9504.10,
9504.90
KOR-SGP
(2 Mar 2006)
9503 (A)
9503 (B)
shift
Regional value
content (RVC)
only
Tariff shift supplemented by
RVC
Comments
CTH
CTH
A
change
from
any
other
chapter.
Or
A change from any other
subheading provided there is a
RVC of not less than 45% when
the build-down method is used,
or of not less than 30% when
the build-up method is used.
A
change
from
any
other
chapter.
A change to
wheeled toys
designed to
be ridden by
children or
dolls’
carriages of
heading
9503
from
dolls
representing
only human
beings, other
toys;
reduced-size
(“scale”)
models and
similar
recreational
models,
working or
not; puzzles
of all kinds
of
heading
9503 or from
any
other
heading.
A change to
dolls
representing
only human
beings
of
heading
9503
from
wheeled toys
designed to
be ridden by
children or
doll’s
carriages,
other
toys;
reduced-size
(“scale”
CC
Or
CTSH+45%
RVC (D)
Or
CTSH+35%
RVC (U)
CC
CTH
CTH
34
Agreement
(Date
of
Entry
into
Force)
Tariff
item
9503 (C)
95049505
Tariff
only
shift
Regional value
content (RVC)
only
models and
similar
recreational
models,
working or
not; puzzles
of all kinds
of
heading
9503 or from
any
other
heading.
A change to
other
toys;
reduced-size
(“scale”)
models and
similar
recreational
models,
working or
not; puzzles
of all kinds
of
heading
9503
from
wheeled toys
designed to
be ridden by
children or
doll’s
carriages or
dolls
representing
only human
beings
of
heading
9503 or from
any
other
heading.
Tariff shift supplemented by
RVC
Comments
CTH
A
change
from
any
other
heading.
CTH
35
Table 7: List of Exporters of Machine-Tools and Parts (HS8456~8466), 2007-2009
Rank in
value of
2009
exports
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Economy
World
Germany
Italy
Japan
United
States
of
America
Switzerland
China
Chinese Taipei
Republic of Korea
Austria
France
Spain
Belgium
United Kingdom
Czech Republic
Canada
Netherlands
Singapore
Sweden
Hong Kong, China
Turkey
APEC
2007
73,773
14,724
8,312
11,567
2008
82,761
16,607
9,273
12,648
2009
50,073
10,920
6,010
5,714
2007
100.00
19.96
11.27
15.68
2008
100.00
20.07
11.20
15.28
2009
100.00
21.81
12.00
11.41
2007
74,155
5,804
2,811
1,559
2008
81,272
6,752
3,185
1,602
2009
48,608
3,768
1,487
876
Trade
balance
(Mil,US$)
2009
1,465
7,151
4,523
4,837
5,128
5,500
3,861
6.95
6.65
7.71
8,064
8,632
4,818
4,858
3,218
4,931
2,142
1,648
1,689
1,372
1,570
1,543
1,100
917
745
958
788
941
540
30,922
5,676
4,197
5,064
2,279
1,990
1,928
1,596
1,911
1,501
1,324
1,050
1,198
1,018
915
880
674
33,694
3,017
2,709
2,541
1,517
1,333
1,249
1,241
1,045
940
871
715
670
620
548
449
395
18,848
6.59
4.36
6.68
2.90
2.23
2.29
1.86
2.13
2.09
1.49
1.24
1.01
1.30
1.07
1.28
0.73
41.92
6.86
5.07
6.12
2.75
2.40
2.33
1.93
2.31
1.81
1.60
1.27
1.45
1.23
1.11
1.06
0.81
40.71
6.03
5.41
5.08
3.03
2.66
2.49
2.48
2.09
1.88
1.74
1.43
1.34
1.24
1.09
0.90
0.79
37.64
1,629
9,421
3,926
1,855
1,197
2,532
1,503
1,781
2,196
1,031
1,821
726
913
851
922
1,252
35,238
1,926
9,810
2,668
1,817
1,481
2,884
1,365
2,024
1,930
1,179
1,734
1,249
932
1,018
805
1,432
35,608
1,184
7,528
562
1,572
962
1,743
610
1,093
1,039
542
1,091
679
626
625
448
681
22,178
Value exported
(Mil,US$)
Share in world exports
(%)
Data Source: Trade Map, ITC.
*The rows with gray color are trade of the APEC members.
36
Value imported
(Mil,US$)
Annual growth in value by
exporters (%)
2007
6.52
16.17
19.57
-9.71
2008
12.18
12.79
11.56
9.34
2009
-39.50
-34.25
-35.19
-54.82
-957
-39.58
7.26
-29.80
1,833
-4,818
1,979
-55
371
-494
631
-48
-100
329
-376
-9
-6
-76
1
-286
-3,162
21.18
43.09
14.98
8.82
34.06
16.01
27.77
26.35
-0.30
40.53
19.66
27.45
-6.82
22.74
16.88
47.80
-7.40
16.83
30.43
2.70
6.40
20.76
14.16
16.28
21.72
-2.67
20.40
14.43
60.80
6.34
16.08
-6.46
24.81
-73.17
-46.85
-35.45
-49.81
-33.44
-32.99
-35.21
-22.22
-45.30
-37.40
-34.20
-31.85
-44.06
-39.09
-40.11
-48.96
-41.36
-97.40
Table 8：List of Major Exporters of Toys and Games (HS9503~9505), 2007-2009
Rank in
value of
2009
exports
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Economy
2008
73,313
24,666
13,615
7,948
2009
61,093
19,355
12,175
6,465
2007
100.00
33.03
19.92
9.56
2008
100.00
33.64
18.57
10.84
2009
100.00
31.68
19.93
10.58
2007
85,407
881
10,674
6,336
2008
97,427
746
12,465
7,660
2009
83,793
671
10,671
7,488
Trade
balance
(Mil,US$)
2009
-22,700
18,685
1,503
-1,023
5,443
4,964
8.16
7.42
8.13
26,269
26,981
23,134
3,529
2,886
2,002
1,440
1,412
1,022
814
1,097
746
753
669
579
491
479
333
175
51,634
2,801
1,829
1,552
1,253
1,212
994
800
723
682
679
589
543
398
373
341
259
42,817
2.17
5.19
2.11
2.00
2.41
1.59
1.18
1.39
1.02
1.14
1.10
0.99
0.70
0.61
0.41
0.27
73.13
4.81
3.94
2.73
1.96
1.93
1.39
1.11
1.50
1.02
1.03
0.91
0.79
0.67
0.65
0.45
0.24
70.43
4.58
2.99
2.54
2.05
1.98
1.63
1.31
1.18
1.12
1.11
0.96
0.89
0.65
0.61
0.56
0.42
70.09
1,485
5,291
2,046
777
5,768
1,374
3,426
825
3,282
2,320
1,842
311
705
518
523
499
51,959
4,754
4,709
2,698
872
5,969
1,517
4,140
1,107
3,483
2,462
2,135
302
814
626
735
603
55,518
3,296
4,487
2,033
719
5,135
1,389
3,440
831
3,002
1,680
2,069
249
624
500
637
539
48,035
Value exported
(Mil,US$)
2007
World
61,220
China
20,222
Hong Kong, China
12,194
Germany
5,854
United
States
of
4,996
America
Netherlands
1,330
Japan
3,179
Mexico
1,293
Czech Republic
1,224
United Kingdom
1,476
Belgium
976
France
720
Austria
853
Canada
627
Spain
700
Italy
674
Chinese Taipei
609
Denmark
429
Singapore
376
Sweden
251
Republic of Korea
162
APEC
44,770
Share in world exports
(%)
Data Source: Trade Map, ITC.
*The gray color denotes APEC members
37
Value imported
(Mil,US$)
Annual growth in value
by exporters (%)
2007
26.59
18.39
23.21
43.33
2008
19.75
21.97
11.65
35.76
2009
-16.67
-21.53
-10.58
-18.65
-18,169
49.79
8.96
-8.80
-495
-2,658
-481
534
-3,923
-395
-2,639
-108
-2,320
-1,001
-1,479
294
-227
-127
-296
-280
-5,218
13.92
45.07
118.21
51.74
33.43
26.62
3.35
14.43
25.31
19.20
5.46
9.14
55.71
47.99
16.00
-7.89
25.68
165.33
-9.22
54.86
17.61
-4.38
4.70
12.99
28.49
19.06
7.64
-0.68
-4.94
14.55
27.55
32.88
7.55
-73.17
-20.64
-36.62
-22.48
-13.01
-14.13
-2.68
-1.64
-34.05
-8.55
-9.87
-11.91
-6.08
-19.02
-22.17
2.51
48.31
-97.40