PART IGENERAL IMPLEMENTING PROVISIONS

TITLE IVORIGIN OF GOODS

CHAPTER 2Preferential origin

Section 1Generalized system of preferences

Subsection 1Definition of the concept of originating products

Article 68

1

For the purposes of Article 66 (b), non-originating materials shall be considered to be suffiently worked or processed when the product obtained is classified in a heading different from those in which all the non-originating materials used in its manufacture are classified, subject to paragraphs 2 and 3 below.

Annex 14 contains the notes concerning products made from non-originating materials.

The expressions ‘chapters’ and ‘headings’ used in these provisions shall mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonized System.

The expression ‘classified’ shall refer to the classification of a product or material under a particular heading.

2

For a product mentioned in columns 1 and 2 of the List in Annex 15, the conditions set out in column 3 for the product concerned shall be fulfilled instead of the rule in paragraph 1.

a

The term ‘value’ in the list in Annex 15 shall mean the customs value at the time of importation of the non-originating materials used or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the country concerned. Where the value of the originating materials used needs to be established, this subparagraph shall be applied mutatis mutandis.

b

The term ‘ex-works price’ in the list in Annex 15 shall mean the price paid for the product obtained to the manufacturer in whose undertaking the last working or processing is carried out, provided the price includes the value of all materials used in manufacture, minus any internal taxes which are, or may be, repaid when the product obtained is exported.

3

For the purposes of Article 66 (b), the following shall in any event be considered as insufficient working or processing to confer the status of originating products, whether or not there is a change of heading:

a

operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

b

simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up;

c

  1. (i)

    changes of packing and breaking up and assembly of consignments,

  2. (ii)

    simple placing in bottles, flasks, bags, boxes, fixing on cards or boards, etc., and all other simple packing operations;

d

the affixing of marks, labels or other like distinguishing signs on products or their packaging;

e

simple mixing of products, whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in this Title to enable them to be considered as originating products;

f

simple assembly of parts of products to constitute a complete product;

g

a combination of two or more operations specified in (a) to (f);

h

slaughter of animals.