Cept rules of origin

Final

CEPT-AFTA RULES OF ORIGIN FOR WOOD-BASED PRODUCTS

Substantial Transformation Criterion

INTRODUCTION

1. 
   Recognizing that the existing percentage of the CEPT Rules of Origin may not be conducive towards the objective of increasing intra-ASEAN trade in wood-based products, the AFTA Council at its 19^th Meeting on .. September 2005 decided that for the purpose of origin determination of wood-based products either the percentage or the substantial transformation (Change in Tariff Classification - CTC) can be used by the exporting country.
   

2. Wood-based products covered under these rules are: (i) HS Chapter 44; (ii) HS 94.01 - 94.03 and 94.06.

3. When an exporting country chooses to apply the substantial transformation criterion, the following rules of origin shall be applied:

GENERAL RULES

Rule 1
A country of origin is that in which the last substantial transformation or process was performed resulting in a new product. Thus, materials which underwent a substantial transformation in a country shall be a product of the country.

Rule 2
A product in the production of which two or more countries involved shall be regarded as originating in the country in which the last substantial transformation or process was performed, resulting in a new product.
Rule 3
Wood-based products will be considered to have undergone a substantial transformation or process if it has been transformed by means of substantial manufacturing or processing into a new and different article of commerce.
Rule 4
A new and different article of commerce will usually result from manufacturing or processing operations if there is a change in:
(i) Commercial designation or identity; or

(ii) Fundamental character; or

(iii) Commercial use
Rule 5
In determining whether products have been subjected to substantial manufacturing or processing operations, the following conditions should be complied with:
5.1 The substantial change in the material or article as a result of the manufacturing or processing operations according to the Change of Tariff Sub-Heading (CTSH 6-digit).
5.2 An article or material shall not be considered to be a product of a particular ASEAN country origin by virtue of merely having undergone any of the following:
5.2.1 Trimming, cutting-to-size, sanding, attaching accessory article such as decorative upholstery material; or
5.2.2 Over-laying and/or coated either by chemical material or natural material.

CERTIFICATE OF ORIGIN

Rule 6
A Certificate of Origin issued by a government authority in the exporting ASEAN country shall be required to authenticate the ASEAN origin of wood-based products.

Rule 7
In the case of two or more countries are involved in the manufacture of wood-based products, only the country in which the last substantial transformation or process was performed shall be required to issue the Certificate of Origin.
Rule 8
The Certificate of Origin shall be presented, along with other required documents, to customs authority of the importing ASEAN country.
Rule 9
In case a dispute arises as to the authenticity of the ASEAN origin of wood-based products, the dispute may be referred to the ASEAN Dispute Settlement Mechanism (DSM) for a decision. In such a case, the customs authority may release the disputed goods after the importer has supplied a guarantee satisfactory to the customs authority.