This conversion requires a change from the HS classification code of non-originating components to the HS code of the final product (e.g. B transformation of wood into furniture). Learn more about level-based rules. Rules of origin are used to determine whether goods qualify for duty-free or reduced duties under the rules of the FTA, even though they may contain non-originating (non-FTA) components. Qualifying your product under ROO may include one of the following options: You can also consult the CBP FTA Comparison Table (Origination section), which lists reference documents containing rules of origin. Learn about the rules of origin and resources to qualify your shipment for the FTA`s preferential tariff treatment. Note: It is necessary to refer to the rule associated with the exported product. Regional value contents may only be applied if they are authorised in accordance with a product-specific rule. Rules based on CVR can be calculated using the following methods/formulas: net cost (NC), transaction value (TV), expansion and construction.
For specific examples of how these formulas work, including the concept of evaluation, see Regional Value Content. Now that you have applied your rule of origin and know that your product qualifies for the preferential duty rate of the FTA, you can certify the origin of the goods. For some products, a ROO may offer the option of using tariff transfer or RVC. Regional Value Content (RVC) rules require that a property contain a certain percentage of FTA content. To benefit from a free trade agreement, your product must have added value from the United States or FTA partner countries. This value may result from the cost of materials or FTA`s skilled labor. Each text of the FTA has its own product-specific rules of origin that prohibit the RVC method(s)/formula(s) you can use to qualify your product as preferential duties. Keep in mind that not all products are subject to the RVC rules: The U.S. International Trade Commission website is part of the U.S. Harmonized Tariff Schedule. Open last year`s document “By Chapters”.
THE ROOs are listed in the “General Notes; General rules of interpretation; General statistical notes. The ROIs of all free trade agreements are contained in one major document. The FTA is indicated at the top of the page under the page number. ItC lists the most recent rules (taking into account revisions to HS codes). The full text of AANZFTA, including annexes, AANZFTA fact sheets, a guide to the agreement`s chapters, and context for the negotiations, is available on DFATD`s website. In addition, DFATD has published a document entitled “Guide to Business: Using the First Protocol” to help exporters and importers take full advantage of AANZFTA. It provides practical advice on how to find customs obligations and rules of origin (ROO) requirements for individual products. More information can be found on the website of the Department of Foreign Affairs and Trade. A second option is to consult the original SROs in an annex or in the “Rules of Origin” chapter of a free trade agreement. The full text of the Free Trade Agreement is available on the U.S.
Trade Representative `SST) website. You may need to consult the most recent rules (in the General Notes to the U.S. Harmonized Tariff Schedule) as opposed to the original rules, as shs codes are sometimes revised every few years, which requires an adjustment of the rules. In the many free trade agreements, you will find different types of rules of origin (ROO). They are specific to each free trade agreement and generally vary from agreement to agreement and product to product. Although the details may vary, many methods and formulas are repeated. Rules of origin are listed in FTA agreements according to HS product classification numbers: Australia, NAFTA, Chile, Colombia, ARC-People`s Republic of Football, Korea, Singapore, Peru and Panama. The other ROO are based on a 35% estimation method: Israel, Jordan, Bahrain, Morocco and Oman. The rules for determining the country of origin can be very simple if a product is grown or manufactured and assembled entirely in a single country. However, if a finished product contains components from many countries, determining origin can be more complex. Rules of origin can be very detailed and specific and vary from agreement to agreement and product to product.
For the purposes of Article 2 (originating products), a good which satisfies the original requirements laid down therein and which is used in another Contracting Party as material for the manufacture of another product shall be deemed to be the originating good of the Contracting Party in which the finished product has been worked or processed. An indirect material shall be considered to be an originating material, irrespective of the place where it is manufactured, and its value shall be equal to the costs entered in the accounting records of the manufacturer of the goods. Certificates of origin issued by the Ministry of Industry and Trade of Laos DPR before 1 July 2012 are valid for 12 months according to AANZFTA`s operational certification procedures. This type of change in tariff classification shows that non-originating components have been sufficiently converted either in the United States or in FTA partner countries to qualify for a preferential tariff under the FTA. The number of non-FTA components does not matter. Where an indication of origin is based solely on a regional value, the following operations or procedures which they carry out alone or in combination with each other shall be considered minimal and shall not be taken into account in determining whether a good is originating or not: for the purposes of this Chapter, all costs shall be incurred in accordance with generally accepted accounting principles adopted in the Contracting Party to which the goods are Produced. The determination of the identical and interchangeable character of originating materials shall be made either by physical separation of each material or by the application of generally accepted accounting principles of inventory control or inventory management practices in the exporting Party. A good retains its originating status in accordance with Article 2 (originating goods) if the following conditions are met: For the avoidance of doubt, nothing in the above definition shall be construed to mean that a Party recognizes or accepts outstanding maritime and territorial claims claimed by another Party, or as a preliminary assessment of the determination of such claims. The claim that the goods are eligible for preferential tariff treatment shall be supported by a certificate of origin issued by an issuing authority or body notified to the other Parties in accordance with the Annex to this Chapter on Enterprise Certification Procedures. .