RESTRICTED
WORLD TRADE G/RO/W/13
24May1996
ORGANIZATION(96-1987)
Committee onRules ofOrigin
INTEGRATED NEGOTIATING TEXT
FOR THE HARMONIZATION WORK PROGRAMME
Note bytheSecretariat
1. Atitsmeeting on10May1996, theCommittee onRules ofOrigin decided toestablish an
IntegratedNegotiatingTextfortheHarmonizationWorkProgrammethatwillbecomeacommonworking
document andreference point fortheCommittee onRules ofOrigin andtheTechnical Committee on
Rules ofOrigin. Inreaching thisdecision, itwasnoted thatsuchatextwould enhance efficiency and
discipline inthenegotiating process, assist delegations, particularly theircapitals, inassessing progress
inthenegotiations andproblems thatexistand,finally, alsoassist inbuilding abridge ofunderstanding
between theCommittee onRules ofOrigin andtheTechnical Committee. TheIntegrated Negotiating
Textwillgiveafactual account ofallstages ofnegotiations, including allreservations byMembers.
TheCommittee alsoagreed onthemodalities asfollows:
(i) theIntegrated Negotiating Textwillbecompiled inaconsolidated, coherent textasaWTO
document andwould include thefollowing sections: theoverall architectural design forthe
Harmonization workprogramme; anannex ofdefinitions forgoods considered asbeing wholly
obtained inonecountry; anannex ofproduct-specific rules; andanannex forminimal
operations andprocesses which donotbythemselves confer origin. Thesections willbe
obtained byextraction fromorreference totherelevant documents emerging from thework
incourse intheTechnical Committee onRules ofOrigin;
(ii) additions ordeletions totheIntegrated Negotiating Textshallbeeffected bytheCommittee
onRules ofOrigin working onthebasis ofconsensus;
(iii) theChairman oftheCommittee onRules ofOrigin, together withtheWTO Secretariat, shall
produce thisIntegrated Negotiating Textforearly transmission totheTechnical Committee
onRules ofOrigin intimeforits4thsession.
2. Theattached draftIntegrated Negotiating Text, prepared bytheChairman together withthe
Secretariat, isherewith circulated toMembers fortheirinformation. Inlightofthemodalities agreed
inparagraph 1(iii)above, itisalsotransmitted totheTechnical Committee onRules ofOrigin indraft
form withaviewtotransmitting afinalversion asearly aspossible.G/RO/W/13
Page2
DRAFT
INTEGRATED NEGOTIATING TEXT
FOR THE HARMONIZATION WORK PROGRAMME
Annex III1
Harmonized Rules ofOrigin
PREAMBLE2
..........
..........
GENERAL RULES3
Article 1:SCOPE OFAPPLICATION
Rules ofOrigin provided inthisAnnex shallbeasdefined inArticle 1,paragraph 1ofthe
Agreement, andshall beapplied forthepurposes setoutinArticle 1,paragraph 2ofthe
Agreement.
Article 2:HARMONIZED SYSTEM
References toheadings andsubheadings arereferences tothemastheyappear intheHarmonized
System. References toclassification inthisAnnex arereferences toclassification under the
Harmonized System.
Article 3:DEFINITIONS
Forthepurposes ofthisAnnex :
1. "Harmonized System" means theHarmonized Commodity Description andCoding
System defined inArticle 1oftheInternational Convention ontheHarmonized
Commodity Description andCoding System (done atBrussels on14June1983) as
amended andbeing inforce on1January 1996.4
1Referred toas"Annex 4"indocument G/RO/5, page 15.
2Seeparagraph 7,Annex 3todocument G/RO/5, page12.
3Seeparagraph 6,Annex 3todocument G/RO/5, page 11.
4Seeparagraph 9,Annex 3todocument G/RO/5, page 12.G/RO/W/13
Page3
2. ["Neutral Elements"5means :
Goods usedintheproduction, testing orinspection ofanother goodbutnotphysically
incorporated intothegood, orgoods usedinthemaintenance ofbuildings orthe
operation ofequipment associated withtheproduction ofagood, andincludes :
(a) Fuelandenergy,
(b) tools, diesandmoulds,
(c) spare partsandmaterials usedinthemaintenance ofequipment andbuildings,
(d) lubricants, greases, compounding materials andother material used in
production orusedtooperate equipment andbuildings,
(e) gloves, glasses, footwear, clothing, safety equipment andsupplies,
(f) equipment, devices andsupplies usedfortesting orinspecting theother goods,
(g) catalysts andsolvents, and
(h) anyother goods thatarenotincorporated intothegood buttheuseofwhich
intheproduction ofthegood canreasonably bedemonstrated tobepartof
thatproduction.]
3. [Other definitions, asnecessary]
Article 4:DETERMINATION OFORIGIN
1. Thecountry oforigin ofagoodshallbedetermined inaccordance withtheprovisions
ofparagraph 2,applied insequence.
2. Subject totheprovisions ofArticle 5,thecountry oforigin ofagood isthecountry
inwhich:
(a) Thegood iswholly obtained asdefined inAppendix 1;
[(b) [Each material inthegood which does notoriginate inthatcountry has
undergone achange inclassification assetforth inAppendix 2orotherwise
satisfies therules setforth inthatAppendix;]
[Each material inthegood which does notoriginate inthatcountry has
undergone asubstantial transformation which satisfies therules setforth in
Appendix 2];]
5Seeparagraph 16,Annex 3todocument G/RO/5, page 13.G/RO/W/13
Page4
[Article 5:RESIDUAL RULES OFORIGIN6
Where theorigin ofagood cannot bedetermined onthebasis oftherules setforth
inAppendix 1orAppendix 2,thecountry oforigin ofthegood shallbe....]
Article 6:MINIMAL OPERATIONS ORPROCESSES7
Notwithstanding compliance withtherules setforth inAppendix 1orAppendix 2,
origin shallnotbeconferred onagoodmerely asaresult oftheoperations ofthetype
listed inAppendix 3.
Article 7:SPECIAL PROVISIONS
1.[NEUTRAL ELEMENTS5]
[Inorder todetermine whether aproduct originates inacountry, itshallnot
benecessary toestablish whether ornotthepower andfuel, plant and
equipment, andmachines andtoolsusedtoobtain suchproduct orthematerials
usedinitsmanufacture which donotandarenotintended toremain inthe
product asfinally constituted originate inthirdcountries.]
[Neutral elements usedintheproduction ofagood shallbedisregarded in
determining whether materials notoriginating inthatcountry andusedinthe
production ofagood undergo achange intariff classification orsatisfy any
other requirements assetoutforthatgood inAppendix 2.]
2.PACKING AND PACKAGING MATERIALS AND CONTAINERS8
Theorigin ofpacking andpackaging materials andcontainers presented with
thegoods therein shallbedisregarded indetermining theorigin ofthegoods
under anychange oftariff classification rulesetoutinAppendix 2,provided
suchpacking andpackaging materials andcontainers areclassified withthe
goods under theHarmonized System.
3.ACCESSORIES AND SPARE PARTS AND TOOLS9
Theorigin ofaccessories, spare parts andtools presented withagood shall
bedisregarded indetermining theorigin ofthegoodunder anychange intariff
classification rulesetoutinAppendix 2,provided that:
- theyarestandard accessories, spare partsandtoolsandtheirquantities
andvalue arecustomary forthegood; and
6Seeparagraphs 12-14, Annex 3todocument G/RO/5, page 12.
7Seeparagraph 15,Annex 3todocument G/RO/5, page 12.
8Seeparagraph 17,Annex 3todocument G/RO/5, page 13.
9Seeparagraph 18,Annex 3todocument G/RO/5, page 13.G/RO/W/13
Page5
- theyareincluded intheprice ofthegood andarenotseparately
invoiced from thegood.
[4.MIXTURES]*
*Placement andcontent tobedetermined
[5.FUNGIBLE GOODS AND MATERIALS10
Forthepurpose ofdetermining thecountry oforigin ofagood,
(a) where domestic materials andforeign materials thatarefungible
materials areusedintheproduction ofthegood, thedetermination
ofwhether thematerials aredomestic materials may, atthechoice of
theproducer ofthegood ortheperson from whom theproducer
acquiredthematerials,bemadeonthebasisofanyapplicableinventory
management methods; and
(b) where domestic goods andforeign goods thatarefungible goods are
physically combined ormixed ininventory and,prior toacquisition
bythebuyer, donotundergo production oranyother operation, other
thanunloading, reloading oranyotheroperation necessary topreserve
thegoods ingood condition ortotransport thegoods tothebuyer of
thegood, thedetermination ofthecountry oforigin ofthatgoodmay,
atthechoice oftheseller ofthegood, bemade onthebasis ofany
oftheapplicable inventory management methods.]
[Article 8:DEMINIMIS*]11
*Placement andcontent tobedetermined
10Seeparagraph 19,Annex 3todocument G/RO/5, page 13.
11Seeparagraph 20,Annex 3todocument G/RO/5, page13.G/RO/W/13
Page6
APPENDIX 1-Wholly Obtained Goods
(Table continues onpages 7-9)
Harmonized definitions ofthegoods thataretobeconsidered asbeing
wholly obtained inonecountry 1
Definitions Notes
1. Thefollowing goods aretobeconsidered asbeing wholly
obtained inonecountry :
(a) Live animals born andraised inthatcountry; Indefinitions 1(a),(b),and(c)theterm "animals" covers allanimal life,
including mammals, birds, fish, crustaceans, molluscs, reptiles, bacteria and
viruses.
(b) Animals obtained byhunting, trapping, fishing, gathering or
capturing inthatcountry;Definition 1(b)covers animals obtained inthewild, whether liveordead, whether
ornotborn andraised inthatcountry.
(c) Products obtained from liveanimals inthatcountry; Definition 1(c)covers products obtained from liveanimals without further
processing2,including milk, eggs, natural honey, hair, wool, semen anddung.
(d) Plants andplant products harvested, picked orgathered inthat
country;Definition 1(d)covers allplant life,including fruit, flowers, vegetables, trees,
seaweed, fungi andliveplants grown inthatcountry.
(e) Minerals andother naturally occurring substances, notincluded in
definitions (a)-(d), extracted ortaken inthatcountry;Definition 1(e)covers crude minerals andother naturally occurring substances,
including rock orsolar salt,crude mineral sulphur occurring infreestate, natural
sands, clays, stones, metallic ores, crude oil,natural gas,bituminous minerals,
natural earths, ordinary natural waters, natural mineral waters, natural snow and
ice.
(f) Scrap andwaste derived from manufacturing orprocessing
operations orfrom consumption inthatcountry andfitonly for
disposal orfortherecovery ofrawmaterials;Definition 1(f)covers allscrap andwaste, including scrap andwaste resulting
from manufacturing orprocessing operations orconsumption inthesame country,
scrap machinery, discarded packaging andhousehold rubbish andallproducts that
cannolonger perform thepurpose forwhich theywere produced, andarefitonly
fordiscarding orfortherecovery ofrawmaterials. Such manufacturing or
processing operations include alltypes ofprocessing, notonly industrial or
chemical butalsomining, agricultural, construction, refining, incineration and
sewage treatment operations.
(g)3[Articles collected inthatcountry which cannolonger perform
their original purpose norarecapable ofbeing restored orrepaired
andwhich arefitonly fordisposal orfortherecovery ofparts or
rawmaterials;]
1Seeparagraph 6,document G/RO/2, page 3.
2TheCommittee onRules ofOrigin, on22May1996, requested theTechnical Committee onRules ofOrigin
toconfirm totheCommittee thattheterm "produced" isnotarestrictive term, andincludes theterms
manufacturing, processing andassembling, andtoprovide thisconfirmation withregard todraft definition 1(i)
ofgoods wholly obtained inonecountry. Furthermore, theCommittee requested theTechnical Committee to
consider providing adefinition of"produced" inregard todraft article 3ofthegeneral rules oftheoverall
architecture oftheHarmonized Work Programme.
3Seeparagraphs 14-30, Annex 1todocument G/RO/5.G/RO/W/13
Page7
Harmonized definitions ofthegoods thataretobeconsidered asbeing
wholly obtained inonecountry 1
Definitions Notes
1. Thefollowing goods aretobeconsidered asbeing wholly
obtained inonecountry :
(h)3Alternative 1:
[Parts orrawmaterials recovered inthatcountry from articles
which cannolonger perform their original purpose norarecapable
ofbeing restored orrepaired;][*]
Alternative 2:
[Parts orrawmaterials obtained inthatcountry from articles
collected inthatcountry which arenotfitfortheir original purpose
norarecapable ofbeing restored orrepaired andarefitonly for
disposal orfortherecovery ofparts orrawmaterials;][Intherecovery ofparts orrawmaterials, environmental considerations mayarise,
particularly forradioactive, hazardous andtoxic waste thatmayresult from the
recovery ofparts orrawmaterials from Articles. Inthisconnection, thisruleis
without prejudice toMembers 'rights totakeWTO-consistent measures toprotect
theenvironment.]4
(i)5Goods obtained orproduced2inthatcountry solely5from products
referred toin(a)-(f)[and(g)and(h)]above;[For agood tobeconsidered wholly obtained inonecountry under definition 1(i):
(i) Thegood must have been obtained orproduced from theproducts of
thatcountry mentioned indefinitions 1(a)to(h);
(ii) theproducts ofdefinitions 1(a)to(h)must nothave undergone
processing inanother country; and
(iii) thegood must notcontain materials notconsidered tobewholly
obtained inthatcountry.]
*[Intherecovery ofparts orrawmaterials, environmental considerations mayarise, particularly forradioactive, hazardous
andtoxic waste thatmayresult from therecovery ofparts orrawmaterials from Articles. Inthisconnection, thisruleis
without prejudice toMembers 'rights totakeWTO-consistent measures toprotect theenvironment.]4
4Severaldelegationsexpressedtheirpreliminaryreservationstothis[footnote/note]andstatedthattheywouldrequestfurtherinstructions
from their capitals.
5Seeparagraphs 11-13, Annex 1todocument G/RO/5, page 6.G/RO/W/13
Page8
Harmonized definitions ofthegoods thataretobeconsidered asbeing
wholly obtained inonecountry
Definitions Notes
2.
Option I
2(i)Products ofsea-fishing andother products taken from theseaoutside a
[theterritorial seaofa]country areconsidered tobewholly obtained inthe
country ofregistration ofthevessel thatcarries outthose operations.
(ii)Goods obtained orproduced onboard factory ships areconsidered tobe
wholly obtained inthecountry ofregistration ofthefactory shipprovided
thatthose goods aremanufactured from theproducts referred toin
subparagraph (i)originating inthatsame country.
(iii)Products taken from thesea-bed orsubsoil beneath thesea-bed outside
a[theterritorial seaofa]country areconsidered tobewholly obtained in
thecountry thathastherights toexploit thatsea-bed orsubsoil.]Definition 2(i)and(ii)includes registration thatacountry grants to
chartered vessels orfactory ships provided thisregistration isinaccordance
withtherequirements ofthatcountry, provided thisregistration isin
accordance withtherequirements ofthatcountry.
Option II
2(i)Products ofsea-fishing andother products taken from theseaoutside a
country areconsidered tobewholly obtained inthecountry ofregistration
ofthevessel thatcarries outthose operations.
(ii)Goods obtained orproduced onboard factory ships areconsidered tobe
wholly obtained inthecountry ofregistration ofthefactory shipprovided
thatthose goods aremanufactured from theproducts referred toin
subparagraph (i)originating inthatsame country.
(iii)Products taken from thesea-bed orsubsoil beneath thesea-bed outside
acountry areconsidered tobewholly obtained inthecountry thathasthe
rights toexploit thatsea-bed orsubsoil.
3.Solely forthepurposes ofapplying paragraph 1and2,theterm
"country" includes themaritime zones under national jurisdiction .
(Notification obligation).Definition 2(i)and(ii)includes registration thatacountry grants to
chartered vessels orfactory ships provided thisregistration isinaccordance
withtherequirements ofthatcountry. InDefinition 3,theinterpretation of
themaritime zones under national jurisdiction willbelefttoindividual
Members.
Option III
2(i)Products ofsea-fishing andother products taken from theseaoutside a
country areconsidered tobewholly obtained inthecountry ofregistration
ofthevessel thatcarries outthose operations.
(ii)Goods obtained orproduced onboard factory ships areconsidered tobe
wholly obtained inthecountry ofregistration ofthefactory shipprovided
thatthose goods aremanufactured from theproducts referred toin
subparagraph (i)originating inthatsame country.
(iii)Products taken from thesea-bed orsubsoil beneath thesea-bed outside
acountry areconsidered tobewholly obtained inthecountry thathasthe
rights toexploit thatsea-bed orsubsoil.
3.Forthepurposes ofparagraphs 1and2,theterm"country" includes the
customs territory ofaMember .Definition 2(i)and(ii)includes registration thatacountry grants to
chartered vessels orfactory ships, provided thisregistration isin
accordance withtherequirements ofthatcountry.G/RO/W/13
Page9
Harmonized definitions ofthegoods thataretobeconsidered asbeing
wholly obtained inonecountry
Definitions Notes
2.(cont.)
Option IV
1.(a)-(i)(asprepared bytheTechnical Committee) Forthepurposes ofparagraph 1,theterm"country" covers thatcountry 's
territorial sea(including thesea-bed thereof andthesubsoil beneath thesea-
bed), airspace above territorial sea,anditscontinental shelves andexclusive
economic zone(excluding thewaters superadjacent tothesea-bed thereof).
2.Thegoods described indefinition 1(a)-(h)above, butnotobtained ina
country, aretobeconsidered asbeing wholly obtained:
(i) asfarastheproducts obtained outside theterritorial seaby
maritime fishing andother products taken from theseaoutside
theterritorial seaareconcerned, inthecountry ofregistration of
thatvessel orfactory ship, iftheactivities toobtain them are
carried outonthatvessel orfactory ship;
(ii) inthecountry which hasjurisdiction onaninstallation, structure
orspacecraft, iftheactivities toobtain them arecarried outon
thatinstallation, structure orspacecraft;
(iii) ifneither (i)nor(ii)above isapplicable, inthecountry which has
jurisdiction ontheactivities toobtain suchgoods.(a)Definition 2(i)doesnotinclude theregistration granted toavessel or
factory shipchartered.
(b)Definition 2(ii)applies to,forexample, theproducts taken from the
sea-bed outside thecontinental shelves orthesubsoil beneath thatsea-bed
andtheproducts obtained intheouter space.
(c)Definition 2(iii) applies totheproducts obtained without aninstallation,
structure orspacecraft.G/RO/W/13
Page10
APPENDIX 2-Product Rules -Substantial Transformation
Introductory Notes1
1. Inapplying thisAppendix, thetitles ofsections andchapters areprovided foreaseofreference only;
forlegalpurposes, origin shallbedetermined according totheterms oftherules themselves, anyrelative legal
notes, andthefollowing provisions.
2. Indetermining theorigin ofagood, thecountry oforigin ofagoodshallbethecountry oforigin conferred
onthegood byapplication oftheruleforthegood setforth inthethird column.
3. Where anentry inthefirstcolumn ispreceded by"ex", thissignifies thattheruleinthethirdcolumn
applies onlytothepartofthatheading orsubheading described inthesecond column.
1SeeAnnex 5todocument G/RO/5, page 19.G/RO/W/13
Page11
NOTE FROM THE SECRETARIAT
1. Decisions taken bytheTechnical Committee areindicated by"Baskets 1to3"asfollows:
Basket 1means therulehasbeenapproved andshould apply asspecified;
Basket 2means therule(s) proposed require(s) further research andanalysis andwillbeexamined later
inPhase II;and
Basket 3means therule(s) willbetaken upinPhase III.
2. Thecountries areidentified attheendofeachentry bythefollowing abbreviations:
Argentina: (ARG); Australia: (AU); Canada: (CAN); Chile (CL); Colombia: (COL); European
Communities: (EC); Hong Kong: (HK); India: (IN); Japan: (JPN); Korea: (KOR);
Mexico: (MEX); Morocco: (MOR); NewZealand: (NZ); Norway: (NO); Philippines: (PH);
Singapore: (SG); Switzerland: (CH); andUnited States: (US).G/RO/W/13
Page12
SECTION IOFTHE HARMONIZED SYSTEM
(Chapters 1-5)
LIVE ANIMALS; ANIMAL PRODUCTS
Section Notes:
Chapter 12:LiveAnimals
Chapter 2:Meat andEdible Meat Offal
Chapter 3:FishandCrustaceans, Molluscs andOther Aquatic Invertebrates
Chapter 4:Dairy Produce; Birds 'Eggs; Natural Honey; Edible Products ofAnimal Origin, Not
Elsewhere Specified orIncluded
Chapter 5:Products ofAnimal Origin, NotElsewhere Specified orIncluded
2TheTechnicalCommitteeendorsedtheapproachforthepresentationofproduct-specificrulessetoutinparagraphs24-30,Annex3,
Annex 5todocument G/RO/5 (seepages 14,19-20).G/RO/W/13
Page13
SECTION IIOFTHE HARMONIZED SYSTEM
(Chapters 6-14)
VEGETABLE PRODUCTS
Section Notes:
Chapter 6:LiveTrees andOther Plants; Bulbs, Roots andtheLike; CutFlowers andOrnamental
Foliage
Chapter 7:Edible Vegetables andCertain Roots andTubers
Chapter 8:Edible Fruit andNuts; PeelofCitrus Fruit orMelons
Chapter 9:Coffee, Tea, Maté andSpices
Chapter 10:Cereals
Chapter 11:Products oftheMilling Industry; Malt; Starches; Inulin; Wheat Gluten
Chapter 12:OilSeeds andOleaginous Fruits; Miscellaneous Grains, Seeds andFruit; Industrial or
Medicinal Plants; Straw andFodder
Chapter 13:Lac; Gums, Resins andOther Vegetable Saps andExtracts
Chapter 14:Vegetable Plaiting Materials; Vegetable Products NotElsewhere Specified orIncludedG/RO/W/13
Page 14
SECTION IIIOFTHE HARMONIZED SYSTEM
(Chapter 15)
ANIMAL ORVEGETABLE FAT AND OILS AND THEIR CLEAVAGE PRODUCTS; PREPARED
EDIBLE FATS; ANIMAL ORVEGETABLE WAXES (Chapter 15)
Section Notes:
Chapter 15:Animal orVegetable FatsandOilsandTheir Cleavage Products; Prepared Edible Fats;
Animal orVegetable WaxesG/RO/W/13
Page15
SECTION IVOFTHE HARMONIZED SYSTEM
(Chapters 16-24)
PREPARED FOODSTUFFS; BEVERAGES, SPIRITS AND VINEGAR; TOBACCO AND
MANUFACTURED TOBACCO SUBSTITUTES
Section Notes:
Chapter 16:Preparations ofMeat, ofFishorCrustaceans, Molluscs orOther Aquatic Invertebrates
Chapter 17:Sugars andSugar Confectionery
Chapter 18:Cocoa andCocoa Preparations
Chapter 19:Preparations ofCereals, Flour, Starch orMilk; Pastrycooks 'Products
Chapter 20:Preparations ofVegetables, Fruit, Nuts orOther Parts ofPlants
Chapter 21:Miscellaneous Edible Preparations
Chapter 22:Beverages, Spirits andVinegar
Chapter 23:Residues andWaste From theFood Industries; Prepared Animal Fodder
Chapter 24:Tobacco andManufactured Tobacco SubstitutesSECTION VOFTHE HARMONIZED SYSTEM
(Chapters 25-27)
Mineral Products
Section Notes :G/RO/W/13
Page 16G/RO/W/13
Page17CHAPTER 25
Chapter Notes :
A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
Chapter 25 Salt; Sulphur; Earths andStone;
Plastering Materials, Lime and
Cement3[thematerial thatdetermines the
classification ofthegood waswholly
obtained; or
each material inthegood which does
notoriginate inthatcountry has
undergone achange inclassification to
thisheading from another heading,
except thefollowing: ]Decision: Basket 2.Throughout thisChapter references to
"Chapter Rule" aretothisprovisional textinsquare
brackets incolumn C.Itwasagreed thattheTechnical
Committee would
re-examine thisprovisional textlater inPhase IIofthe
Work Programme.*TheECreserved theright tocome
back totheEC'sproposal "wholly obtained goods, except
thefollowing".
25.01 Salt(including table saltand
denatured salt) andpure sodium
chloride, whether ornotinaqueous
solution orcontaining added anti-
caking orfree-flowing agents; sea
water.[Chapter ruleapplies tothisheading,
except
ex25.01. ]Decision: Basket 2.
3Thewording ofthiscolumn onproduct rules willchange to"substantial transformation criteria" when thenextrevised Integrated Negotiating TextfortheHarmonization
Work Programme iscirculated.
*(SG) proposed arulebased ontheprinciple ofachange oftariff classification atsubheading level andagreed toprovide adetailed justification oftheir proposal foreach
heading orsubheading forwhich theywould propose thisruleG/RO/W/13
Page18A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.01 Saltandpuresodium chloride (NaCl)
(CH)Supplementary criteria arenecessary.
(CH)Purification (isolation) byphysical treatment; residuary
NaCl from anyprocess; addition ofiodides, phosphates
(fornutrition); chemical waste. (CH)
Decision: Basket 2.Forfurther study toascertain if
purification ofsaltcould confer origin. Theproponent
(CH) willprovide Secwithadditional information and
justification.
ex25.01 Pure sodium chloride (EC) Change tothissplitheading from any
other splitheading ofthisheading.
(EC)Theproduction ofpure sodium chloride ofthissplit
heading from saltofthisheading canbeconsidered asa
substantial transformation. (EC)
Decision: Basket 2.Forfurther study toascertain if
refining ofsaltcould confer origin. Theproponent (EC)
willprovide Secwithadditional information and
justification.G/RO/W/13
Page19A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.01 Refined salt(JPN) Change tothissplitheading from any
other splitheading ofthisheading.
(JPN)Refining isdeemed tobeasubstantial transformation
because thistransformation, which isgenerally carried out
through theprocess ofdissolution andrecrystallization,
changes rawsaltsintoproducts withadifferent sizeof
granule, crystallized form andcomposition. (JPN)
Decision: Basket 2.Forfurther study toascertain if
refining ofsaltcould confer origin. Theproponent (JPN)
willprovide Secwithadditional information and
justification.
25.02 Unroasted ironpyrites [Chapter ruleapplies. ] Decision: Basket 2.
25.03 Sulphur ofallkinds, other than
sublimed sulphur, precipitated
sulphur andcolloidal sulphur.[Chapter ruleapplies, except ex25.03. ]Decision: Basket 2.
ex25.03 Sulphur ofallkinds, other than
sublimed sulphur, precipitated sulphur
andcolloidal sulphur, other thancrude
orunrefined. (EC)(CH)Change tothissplitheading from any
other splitheading ofthisheading.
(EC) (JPN)Refining canbeconsidered asasubstantial transformation.
(EC)
Decision: Basket 2.Forfurther study toascertain if
refining ofsulphur could confer origin. Theproponents
(ECandJPN) willprovide Secwithadditional information
andjustification.G/RO/W/13
Page20A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
Supplementary criteria arenecessary.
(CH)Refining byphysical treatment. Triturated sulphur by
grinding andsieving. Change ofphysical habit. Change of
physical structure. Sulphur byspecial distilling. (CH)
Decision: Basket 2.Forfurther study toascertain if
refining ofsulphur could confer origin. Theproponent
(CH) willprovide Secwithadditional information and
justification.
25.04 Natural graphite [Chapter ruleapplies. ] Decision: Basket 2.
25.05 Natural sands ofallkinds, whether
ornotcoloured, other than metal-
bearing sands ofChapter 26[Chapter ruleapplies. ] Decision: Basket 2.
25.06 Quartz (other than natural sands);
quartzite, whether ornotroughly
trimmed ormerely cut,bysawing or
otherwise, intoblocks orslabs ofa
rectangular (including square) shape.[Chapter ruleapplies tothisheading,
except ex25.06. ]Decision: Basket 2.
ex25.06 cut,bysawing orotherwise, into
blocks orslabs ofarectangular
(including square) shape. (EC)Supplementary criteria arenecessary.
(EC)Decision: Basket 2.Forfurther study toascertain ifthe
"cutting" process could confer origin. Theproponent (EC)
willprovide Secwithadditional information and
justification.
25.07 Kaolin andother kaolinic clays,
whether ornotcalcined.[Chapter ruleapplies tothisheading,
except ex25.07. ]Decision: Basket 2.G/RO/W/13
Page21A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.07 Calcined (CH) (EC) Change tothissplitheading from
another splitheading ofthisheading.
(EC) (CH)Calcination ofnon-calcined minerals canbeconsidered asa
substantial transformation. (EC)
Calcination eliminates water, effects sintering. Change in
physical structure. (CH)
Calcining ofclayserves merely todrive offwater of
hydration, does notresult inmodifying thechemical
structure ofthematerial, anddoes notresult in
substantially transforming theclay. (US)
Decision: Basket 2.Forfurther study toascertain if
calcination ofclaycould confer origin. Theproponents
(ECandCH)willprovide Secwithadditional information
andjustification.
25.08Other clays (notincluding expanded
clays ofheading No.68.06),
andalusite, kyanite andsillimanite,
whether ornotcalcined; mullite;
chamotte ordinas earths.[Chapter ruleapplies tothisheading,
except ex25.08. ]Decision: Basket 2.G/RO/W/13
Page22A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.08 Calcined (CH) (EC) Change tothissplitheading from
another splitheading ofthisheading.
(EC) (CH)Calcination ofnon-calcined minerals canbeconsidered asa
substantial transformation. (EC)
Making mullite byheattreating ofother clays of25.08 (no
change ofheading): change ofphysical structure. Making
mullite byfusing mixture ofcomponents: chemical
reaction. Irreversible sintering bycalcining: change of
physical structure. (CH)
Calcining ofclayserves merely todrive offwater of
hydration, does notresult inmodifying thechemical
structure ofthematerial, anddoes notresult in
substantially transforming theclay. (US)
Decision: Basket 2.Forfurther study toascertain if
calcination ofclaycould confer origin. Theproponents
(ECandCH)willprovide Secwithadditional information
andjustification.
25.09 Chalk [Chapter ruleapplies. ] Decision: Basket 2.
25.10 Natural calcium phosphates, natural
aluminium phosphates and
phosphatic chalk[Chapter ruleapplies. ] Decision: Basket 2.G/RO/W/13
Page23A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
25.11 Natural barium sulphate (barytes);
natural barium carbonate (witherite),
whether ornotcalcined, other than
barium oxide ofheading No.28.16.Change within thisheading by
calcining, provided itresults ina
change inthechemical structure ofthe
goods. (JPN)Change within thisheading byachemical reaction is
deemed tobeasubstantial transformation. (JPN)
Decision: Basket 2.Forfurther study toascertain if
calcination ofthegoods could confer origin. The
proponent (JPN) willprovide Secwithadditional
information andjustification.
ex2511.20 -Natural barium carbonate, calcined. Achange within subheading 2511.20
bycalcining ofuncalcined materials.
(US) (EC) (JPN) (CH)Reflects substantial transformation resulting from calcining.
(US)
Decision: Basket 2.Forfurther study toascertain if
calcination ofthegood could confer origin. The
proponents (US, EC,JPNandCH)willprovide Secwith
additional information andjustification.
25.12 Siliceous fossil meals (forexample,
kieselguhr, tripolite anddiatomite)
andsimilar siliceous earths, whether
ornotcalcined, ofanapparent
specific gravity of1orless.Supplementary criteria arenecessary.
(CH)Refining bywashing withacids. (CH)
Decision: Basket 2.Forfurther study onrefining by
washing withacids asorigin-conferring. Theproponent
(CH) willprovide Secwithadditional information and
justification.G/RO/W/13
Page24A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.12 Siliceous fossil meals (forexample,
kieselguhr, tripolite anddiatomite) and
similar siliceous earths ofanapparent
specific gravity of1orless, calcined.
(US) (EC) (JPN)Achange within heading 25.12 by
calcining ofuncalcined materials. (US)
(JPN) (EC)Reflects substantial transformation from calcining. (US)
Change within thisheading byachemical reaction is
deemed tobeasubstantial transformation. (JPN)
Decision: Basket 2.Forfurther study toascertain if
calcination ofthegoods asorigin-conferring. The
proponents (US, JPNandEC)willprovide Secwith
additional information andjustification.
25.13 Pumice stone; emery; natural
corundum, natural garnet andother
natural abrasives, whether ornot
heat-treated.[Chapter ruleapplies. ] Decision: Basket 2.
25.14 Slate, whether ornotroughly
trimmed ormerely cut,bysawing or
otherwise, intoblocks orslabs ofa
rectangular (including square) shape.[Chapter ruleapplies tothisheading,
except ex25.14. ]Decision: Basket 2.
ex25.14 cut,bysawing orotherwise, into
blocks orslabs ofarectangular
(including) square shape. (EC)Supplementary criteria arenecessary.
(EC)Decision: Basket 2.Forfurther study toascertain if
"cutting" ofthegoods could confer origin. Theproponent
(EC) willprovide Secwithadditional information and
justification.
25.15 Marble, travertine, ecaussine and
other calcareous monumental or
building stone ofanapparent specific
gravity of2.5ormore, and
alabaster, whether ornotroughly
trimmed ormerely cut,bysawing or
otherwise, intoblocks orslabs ofa
rectangular (including square) shape.[Chapter ruleapplies tothisheading,
except ex25.15. ]Decision: Basket 2.G/RO/W/13
Page25A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.15 cut,bysawing orotherwise, into
blocks orslabs ofarectangular
(including) square shape. (EC)Supplementary criteria arenecessary.
(EC)Decision: Basket 2.Forfurther study toascertain ifthe
"cutting" process could confer origin. Theproponent (EC)
willprovide Secwithadditional information and
justification.
25.16 Granite, porphyry, basalt, sandstone
andother monumental orbuilding
stone, whether ornotroughly
trimmed ormerely cut,bysawing or
otherwise, intoblocks orslabs ofa
rectangular (including square) shape.[Chapter ruleapplies tothisheading,
except ex25.16. ]Decision: Basket 2.
ex25.16 cut,bysawing orotherwise, into
blocks orslabs ofarectangular
(including) square shape. (EC)Supplementary criteria arenecessary.
(EC)Decision: Basket 2.Forfurther study toascertain if
"cutting" ofthegoods could confer origin. Theproponent
(EC) willprovide Secwithadditional information and
justification.
25.17 Pebbles, gravel, broken orcrushed
stone, ofakind commonly used for
concrete aggregates, forroad
metalling orforrailway orother
ballast, shingle andflint, whether or
notheat-treated; macadam ofslag,
dross orsimilar industrial waste,
whether ornotincorporating the
materials cited inthefirstpart ofthe
heading; tarred macadam; granules,
chippings andpowder, ofstones of
heading No.25.15 or25.16, whether
ornotheat-treated.[Chapter ruleapplies tothisheading,
except 2517.30. ]Decision: Basket 2.G/RO/W/13
Page26A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
2517.30 -Tarred macadam Change tothissubheading from any
other subheading. (JPN) (US)Theproduction oftarred macadam bymixing mineral
products inthisheading withbituminous products ofother
Chapters isdeemed tobeasubstantial transformation.
(JPN)
Reflects substantial transformation totarred macadam by
mixing withbituminous materials. (US)
Decision: Basket 2.Forfurther study toascertain ifthe
mixing ofminerals withbituminous products asorigin-
conferring. Theproponents (JPN andUS)willprovide Sec
withadditional information andjustification.
25.18 Dolomite, whether ornotcalcined;
dolomite roughly trimmed ormerely
cut,bysawing orotherwise, into
blocks orslabs ofarectangular
(including square) shape;
agglomerated dolomite (including
tarred dolomite).[Chapter ruleapplies tothisheading,
except
ex25.18, 2518.20 andex2518.30. ]Decision: Basket 2.
ex25.18 cut,bysawing orotherwise, into
blocks orslabs ofarectangular
(including square) shape (EC)Supplementary criteria arenecessary.
(EC)Decision: Basket 2.Forfurther study toascertain if
"cutting" ofdolomite could confer origin. Theproponent
(EC) willprovide Secwithadditional information and
justification.G/RO/W/13
Page27A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
2518.20 -Calcined dolomite Achange tosubheading 2518.20 from
subheading 2518.10. (US) (EC) (CH)Reflects substantial transformation from calcining. (US)
Decision: Basket 2.Forfurther study toascertain if
calcination ofdolomite isenough toconfer origin. The
proponents (US, ECandCH)willprovide Secwith
additional information andjustification.
ex2518.30 -Tarred dolomite (US) Achange tothissplitsubheading from
another subheading. (US)Reflects substantial transformation totarred dolomite by
mixing withbituminous materials. (US)
Decision: Basket 2.Forfurther study ontreating mixing
dolomite withbituminous materials asorigin-conferring.
Theproponent (US) willprovide Secwithadditional
information andjustification.
ECreserved itsposition.
25.19 Natural magnesium carbonate
(magnesite); fused magnesia; dead-
burned (sintered) magnesia, whether
ornotcontaining small quantities of
other oxides added before sintering;
other magnesium oxide, whether or
notpure.[Chapter ruleapplies tothisheading,
except ex25.19. ]Decision: Basket 2.G/RO/W/13
Page28A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.19 Calcined (EC) Change tothissplitheading from
another splitheading ofthisheading.
(EC)Calcination ofnon-calcined minerals canbeconsidered asa
substantial transformation. (EC)
Decision: Basket 2.Forfurther study toascertain if
calcination ofthegoods isorigin-conferring. The
proponent (EC) willprovide Secwithadditional
information andjustification. Heisalsorequested to
specify theproducts theproposed ruleintends tocover.
ex25.19 Fusing (JPN) Change tothissplitheading from
another splitheading ofthisheading.
(JPN)Decision: Basket 2.Forfurther study toascertain iffusing
ofthegoods isorigin-conferring. Theproponent (JPN)
willprovide Secwithadditional information and
justification.
ECreserved itsposition.
ex25.19 Fused magnesia; calcined magnesium
oxide (US)Achange tofused magnesia orto
calcined magnesium oxide from other
materials ofheading 25.19 provided the
process results inachange inthe
chemical structure ofmaterial. (US)Reflects substantial transformation resulting from fusing of
unfused magnesia. Seecomment for2511.20 regarding
calcining. (US)
Decision: Basket 2.Forfurther study toascertain iffusing
orcalcining ofgoods isenough toconfer origin. The
proponent (US) willprovide Secwithadditional
information andjustification.G/RO/W/13
Page29A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex2519.90 -Fused magnesia (MgO, fused) (CH) Supplementary criteria arenecessary.
(CH)From calcined MgO, calcining anddead-burning areas
essential asfusing. (CH)
Decision: Basket 2.Forfurther study toascertain iffusing
ofgoods isorigin-conferring. Theproponent (CH) will
provide Secwithadditional information andjustification.
ex2519.90 -Dead-burnt (sintered) magnesia
(MgO, sintered) (CH)Supplementary criteria arenecessary.
(CH)From calcined MgO. (CH)
Decision: Basket 2.Forfurther study toascertain ifdead-
burning ofgoods isorigin-conferring. Theproponent (CH)
willprovide Secwithadditional information and
justification.
ex2519.90 -Other MgO's(caustic aswellas
chemically pureM.)(CH)Supplementary criteria arenecessary.
(CH)Caustic: byburning magnesite pure; byother
transformation. (CH)
Decision: Basket 2.Forfurther study toascertain ifthe
burning process described isorigin-conferring. The
proponent (CH) willprovide Secwithadditional
information andjustification.G/RO/W/13
Page30A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
25.20 Gypsum; anhydrite; plasters
(consisting ofcalcined gypsum or
calcium sulphate) whether ornot
coloured, with orwithout small
quantities ofaccelerators or
retarders.Supplementary criteria arenecessary.
(CH)Example showing thestrong effect ofphysical treatments.
(CH)
Decision: Basket 2.Forfurther study toverify ifphysical
treatment ofgoods mayconfer origin. Theproponent (CH)
willprovide Secwithadditional information and
justification.
2520.20 -Plasters Achange tosubheading 2520.20 from
subheading 2520.10 bycalcining of
uncalcined materials. (US) (EC)Reflects substantial transformation resulting from calcining.
(US)
Calcination ofnon-calcined minerals canbeconsidered asa
substantial transformation. (EC)
Decision: Basket 2.Forfurther study toascertain if
calcination ofplaster isorigin-conferring. Theproponent
(USandEC)willprovide Secwithadditional information
andjustification.
25.21 Limestone flux; limestone andother
calcareous stone, ofakind used for
themanufacture oflime orcement.[Chapter ruleapplies. ] Decision: Basket 2.G/RO/W/13
Page31A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
25.22 Quicklime, slaked lime andhydraulic
lime, other than calcium oxide and
hydroxide ofheading No.28.25.(a)Change inthisheading, provided it
results from achemical reaction. (JPN)Thechemical reaction from quicklime toslaked lime is
deemed tobeasubstantial transformation from atechnical
point ofview. (JPN)
Decision: Basket 2.Forfurther study toascertain ifthe
production ofslaked lime from quicklime isorigin-
conferring. Theproponent (JPN) willprovide Secwith
additional information andjustification.
(b)Change tothisheading from any
other heading. (EC) Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided from the
proponent (EC).
25.23 Portland cement, aluminous cement,
slagcement, supersulphate cement
andsimilar hydraulic cements,
whether ornotcoloured orinthe
form ofclinkers(a)Change tothesubheadings ofthis
heading from anyother subheading,
including subheading ofthisheading.
(SG) (PH)Proposal (a)incolumn "C"suggests thatthemanufacture
ofcements (subheadings 2523.21 -2523.90) from cement
clinkers (subheading 2523.10) betreated asorigin-
conferring.
Decision: Basket 2.Forfurther study (together with(b))
withadditional information andjustification tobeprovided
bytheproponents (SGandPH).
(b)Achange tothisheading from any
other heading. (US) (EC)Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponents (USandEC).
25.24 Asbestos [Chapter ruleapplies. ] Decision: Basket 2.
25.25 Mica, including splittings; mica
waste.[Chapter ruleapplies. ] Decision: Basket 2.G/RO/W/13
Page32A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
25.26 Natural steatite, whether ornot
roughly trimmed ormerely cut,by
sawing orotherwise, intoblocks or
slabs ofarectangular (including
square) shape; talc.[Chapter ruleapplies tothisheading,
except ex25.26. ]Decision: Basket 2.
ex2526.10 Natural steatite, cut,bysawing or
otherwise, intoblocks orslabs ofa
rectangular (including square) shape.
(EC)Supplementary criteria arenecessary.
(EC)Decision: Basket 2.Forfurther study toascertain if
"cutting" ofnatural steatite isorigin-conferring. The
proponent (EC) willprovide Secwithadditional
information andjustification.
2526.20 -Crushed orpowdered Change tothissubheading from
subheading 2526.10 (CH)Physical treatment; otherwise nottouseasfilter inplastics.
(CH)
Decision: Basket 2.Forfurther study toascertain if
physical treatment ofthegoods maybring about substantial
transformation. Theproponent (CH) willprovide Secwith
additional information andjustification.
25.27 Natural cryolite; natural chiolite [Chapter ruleapplies. ] Decision: Basket 2.
25.28 Natural borates andconcentrates
thereof (whether ornotcalcined), but
notincluding borates separated from
natural brine; natural boric acid
containing notmore than 85% of
H3BO3calculated onthedryweight.[Chapter ruleapplies tothisheading,
except ex25.28. ]Decision: Basket 2G/RO/W/13
Page33A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.28 Calcined (EC) (US) Change tothissplitheading from
another splitheading ofthisheading.
(EC) (US)Calcination ofnon-calcined minerals canbeconsidered asa
substantial transformation. (EC)
Reflects substantial transformation resulting from calcining.
(US)
Decision: Basket 2.Forfurther study toascertain if
calcination ofgoods isorigin-conferring. Theproponents
(ECandUS)willprovide Secwithadditional information
andjustification.
25.29 Felspar; leucite; nepheline and
nepheline syenite; fluorspar[Chapter ruleapplies tothisheading,
except ex25.29. ]Decision: Basket 2.
ex25.29 Calcined (EC) Change tothissplitheading from
another splitheading ofthisheading.
(EC)Calcination ofnon-calcined minerals canbeconsidered asa
substantial transformation. (EC)
Decision: Basket 2.Forfurther study toascertain ifthe
calcined goods areclassified inthisheading and,ifso,
whether calcination ofthegoods isorigin-conferring. The
proponent (EC) willprovide Secwithadditional
information andjustification. Heisalsorequested to
confirm iftheproposed rulecovers allproducts ofthe
heading.
25.30 Mineral substances notelsewhere
specified orincluded.[Chapter ruleapplies tothisheading,
except ex25.30. ]Decision: Basket 2.G/RO/W/13
Page34A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:3Remarks orjustification oftheprevious columns
ex25.30 Calcined mineral substances not
elsewhere specified orincluded. (US)
(EC)Achange within heading 25.30 by
calcining ofuncalcined materials. (US)
(EC)Reflects substantial transformation resulting from calcining.
(US)
Calcination ofnon-calcined minerals canbeconsidered asa
substantial transformation. (EC)
Decision: Basket 2.Forfurther study toascertain if
calcination ifthegoods isorigin-conferring. The
proponents (USandEC)willprovide Secwithadditional
information andjustification.
ex25.30 Molybdenite concentrates (EC) Change tothissplitheading from any
other heading. (EC)Themanufacture ofmolybdenite concentrates from
molybdenum oresofheading 26.13 canbeconsidered asa
substantial transformation. (EC)
Decision: Basket 2.Forfurther study toascertain if
conversion ofmolybdenite concentrates from molybdenum
oresisenough toconfer origin andtoverify the
classification ofmolybdenite concentrates inthisheading.
Theproponent (EC) willprovide Secwithadditional
information andjustification.G/RO/W/13
Page35CHAPTER 26
Chapter Notes :
A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
Chapter 26 Ores, Slag andAsh [thematerial thatdetermines the
classification ofthegood waswholly
obtained; or
each material inthegood, which does
notoriginate inthatcountry, has
undergone achange inclassification to
thisheading from anyother heading,
except thefollowing: ]Decision: Basket 2.Throughout thisChapter references to
"Chapter Rule" aretothisprovisional textinsquare
brackets incolumn C.Itwasagreed thattheTechnical
Committee would
re-examine thisprovisional textlater inPhase IIofthe
Work Programme.*TheECreserved theright tocome
back totheEC'sproposal "wholly obtained goods, except
thefollowing".
26.01 -26.17 Please refer totheHSnomenclature for
thedescription ofgoods. (Sec)Goods which have been subjected toa
process resulting inachange inthe
chemical structure orphysical state
such ascalcining, roasting,
agglomeration (e.g. sintering or
pelleting), etc.aredeemed tobegoods
ofthelastcountry where such
processes were performed. (CH)Decision: Basket 2.Forfurther study toascertain ifsuch
processes ascalcination, roasting, agglomeration, etc., that
change thechemical structure orphysical state ofgoods,
could confer origin. Theproponent (CH) willprovide Sec
withadditional information andjustification.
*(SG) proposed arulebased ontheprinciple ofachange oftariff classification atsubheading level andagreed toprovide adetailed justification oftheir proposal for
each heading orsubheading forwhich theywould propose thisruleG/RO/W/13
Page36A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
ex26.01 -
ex26.17Metal oreconcentrates (US) Change toconcentrates ofthese
headings from oresofthesame
heading. (JPN) (US)Change toconcentrates from oresisdeemed tobea
substantial transformation. (JPN) (US)
Decision: Basket 2.Forfurther study toascertain if
conversion oforeconcentrates from oresmayconfer
origin. Theproponent (US) willprovide Secwith
additional information andjustification.
ex26.01 -
ex26.17Ores, calcined orroasted (EC) Supplementary criteria arenecessary.
(EC)Certain processes, such ascalcination orroasting oforesof
these headings canbeconsidered assubstantial
transformation. (EC)
Decision: Basket 2.Forfurther study toascertain ifthe
conversion oforeconcentrates from oresmayconfer
origin. Theproponent (EC) willprovide Secwith
additional information andjustification.
26.18 Granulated slag(slag sand) from the
manufacture ofironorsteel.[Chapter ruleapplies. ] Decision: Basket 2.
26.19 Slag, dross (other than granulated
slag), scalings andother waste from
themanufacture ofironorsteel.[Chapter ruleapplies. ] Decision: Basket 2.
26.20 Ashandresidues (other than from
themanufacture ofironorsteel),
containing metals ormetal
compounds.[Chapter ruleapplies. ] Decision: Basket 2.
26.21 Other slagandash,including
seaweed ash(kelp).[Chapter ruleapplies. ] Decision: Basket 2.G/RO/W/13
Page37CHAPTER 27
Chapter Notes :
[1.Forpurposes ofthisChapter, a"chemical reaction" means aprocess inwhich chemical bonds inmolecules arebroken andnewchemical bonds areformed between
thefragmented molecules and/or added elements sothatoneormore oftheoriginal bonds nolonger linkthesame chemical elements orfunctional groups. (CAN) (JPN)]
A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
Chapter 27 Mineral fuels, mineral oilsand
products oftheir distillation;
Bituminous substances; Mineral
waxesEach material inthegood which does
notoriginate inthatcountry has
undergone achange inclassification to
thisheading from another heading,
except thefollowing:Decision: Basket 1
27.01 Coal; briquettes, ovoids andsimilar
solid fuels manufactured from coal.[thematerial thatdetermines the
classification ofthegood waswholly
obtained; or
each material inthegood which does
notoriginate inthatcountry has
undergone achange inclassification to
thisheading from another heading,
except thefollowing: ]Decision: Basket 2.
Goods ofanyheading orsubheading ofChapter 27(other
thanheading 27.09) thathave been obtained asaresult ofa
chemical reaction, including refinery processes such as
cracking, catalytic reforming, desulfurization (removal of
bound sulphur) ordehydroalkylation, aredeemed tobe
goods ofthecountry where thereaction occurred. (US)G/RO/W/13
Page38A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
2701.20 -Briquettes, ovoids andsimilar solid
fuels manufactured from coalChange tothissubheading from any
other subheading. (JPN)Themanufacture ofbriquettes, ovoides andsimilar solid
fuels manufactured from coalisdeemed tobeasubstantial
transformation. (JPN)
Decision: Basket 2.Forfurther study toascertain ifthe
above-mentioned manufacture isorigin-conferring. The
proponent (JPN) willprovide Secwithadditional
information andjustification.
27.02 Lignite, whether ornot
agglomerated, excluding jet.[thematerial thatdetermines the
classification ofthegood waswholly
obtained; or
each material inthegood which does
notoriginate inthatcountry has
undergone achange inclassification to
thisheading from another heading. ]Decision: Basket 2.
USremark forheading 27.01 applies alsotothis
heading/subheading
27.03 Peat (including peat litter), whether
ornotagglomerated.[thematerial thatdetermines the
classification ofthegood waswholly
obtained; or
each material inthegood which does
notoriginate inthatcountry has
undergone achange inclassification to
thisheading from another heading. ]Decision: Basket 2.
USremark forheading 27.01 applies alsotothis
heading/subheadingG/RO/W/13
Page39A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
27.04 Coke andsemi-coke ofcoal, oflignite
orofpeat, whether ornot
agglomerated; retort carbon.Chapter ruleapplies Decision: Basket 1.
27.05 Coal gas,water gas,producer gas
andsimilar gases, other than
petroleum gases andother gaseous
hydrocarbons.Chapter ruleapplies. Decision: Basket 1.
TheCOL Delegate reserved theright tomade further
comments.
27.06 Tardistilled from coal, from lignite
orfrom peat, andother mineral tars,
whether ornotdehydrated or
partially distilled, including
reconstituted tars.Chapter ruleapplies. Decision: Basket 1.
TheCOL Delegate reserved theright tomake further
comments.
27.07 Oilsandother products ofthe
distillation ofhigh temperature coal
tar;similar products inwhich the
weight ofthearomatic constituents
exceeds thatofthenon-aromatic
constituents.(a)Wholly obtained goods. (COL) Decision: Basket 2.
Because ofthedivergent opinions ontheruleforthis
heading, further study isnecessary. Theproponents (COL,
JPN, CAN, ECandSG)willprovide Secwithadditional
information andjustification ontheir proposals.
USremark forheading 27.01 applies alsotothis
heading/subheadingG/RO/W/13
Page40A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(b)Change tothisheading from any
other heading; or
Change ofsubheadings within this
heading, provided thechange results
from achemical reaction. (JPN)Change ofsubheading within thisheading byachemical
reaction isdeemed tobeasubstantial transformation. (JPN)
Decision: Basket 2.Seeremark for(a).
(c)Achange tosubheading 2707.10
through 2707.99 from anyother
heading; or
Achange tosubheading 2707.10
through 2707.99 from anyother
subheading, including another
subheading within thatgroup, provided
thatthegood oftheother subheading
undergoes achemical reaction. (CAN)Decision: Basket 2.Seeremark for(a).
(d)Supplementary criteria are
necessary. (EC)Refining operations and/or oneormore specific process(es)
such asvacuum distillation, cracking, reforming, etc., can
beconsidered assubstantial transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating to
thespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
Decision: Basket 2.Seeremark for(a).G/RO/W/13
Page41A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(e)Goods ofheadings 27.07-27.10 that
arenotwholly theproduct ofone
country shall bedeemed tooriginate in
thelastcountry where oneofthe
following occurs :
(i)non-originating materials undergo
achange ofclassification to
subheadings ofthischapter from
anyother subheading, including
another subheading within the
Chapter; or
(ii) thegoods have been obtained asa
result ofachemical reaction,
including refinery processes such
ascracking (including catalytic
cracking, hydrocracking, thermal
cracking, coking and
visbreaking), catalytic reforming,
desulfurisation (removal ofbound
sulphur) alkylation (including
dehydroalkylation andhydroal-
kylation); or
(iii) thegoods have been obtained asa
result ofphysical separation
processes such asvacuum
distillation orsolvent extraction
processes; orDecision: Basket 2.Seeremark for(a).G/RO/W/13
Page42A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(iv) thegoods have been obtained by
blending toconform tospecific
predetermined physical
specifications, such asboiling
point range, viscosity,
solidification temperature,
random ormotor octane
numbers, cetane number, vapour
pressure, smoke point, freeze
point, volatility, ordensity,
which aredifferent from the
specifications oftheinput
materials; or
(v)theCIFvalue ofnon-originating
rawmaterials imported andused
intheproduction does notexceed
75% oftheex-factory price of
thegoods. Themethod of
calculating foreign content isas
follows :
FC=cifvalue ofNORM x100%
75%
Ex-Factory Price
where
FC:foreign content
NORM: non-originating rawmaterials
Ex-Factory Price: =Total materials
cost+Direct labour costs +
Overheads costs +Profits (SG)G/RO/W/13
Page43A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
ex27.07 Goods thathave been formulated by
blending. (US)Goods ofheadings 27.07 or27.10 that
have been blended toconform to
specific predetermined physical
specifications, such asboiling point
range, viscosity, solidification
temperature, random ormotor octane
number, orcetane number, which are
different from thespecifications ofthe
input materials, aredeemed tobegoods
ofthecountry where theblending
occurred, provided that:Substantial transformation resulting from blending.
Thisproposal recognizes withrespect toheading 27.07 and
27.10 thatsubstantial transformation ofgoods classified in
those headings mayresult through deliberate blending
without aconsequential change inclassification. Therule
permits origin tobeconferred incases where thegoods are
deliberately blended toconform theresulting product to
stated requirements, such asthose contained inASTM
standards.G/RO/W/13
Page44A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(i)inthecaseofmotor fuels (other
thandiesel fuels), thegood hasan
octane rating of6ormore units higher
thanthatoftheblending component
thatbyvolume constitutes thesingle
largest blending component obtained
from asingle country; or
(ii)inthecaseofother goods, not
more than70percent byvolume ofthe
product iscomposed ofblending
components originating from acountry
other thanthecountry where the
blending occurred. (US)Inthecaseofmotor fuels (other thandiesel fuels), origin
ofthemotor fuelisdependent upon itsoctane rating
increasing by6ormore units when compared withthe
blending component classified inheading 27.07 or27.10,
thatmakes upthelargest single blending constituent by
volume thathasbeen obtained from asingle country.
Inthecaseofother blended goods, origin isdetermined by
whether ornotthetotal volume ofblending components
obtained from asingle country exceed 70percent ofthe
totalvolume ofthefinal product. (US)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent (US).
27.08 Pitch andpitch coke, obtained from
coaltarorfrom other mineral tars.(a)Wholly obtained goods. (COL) Decision: Basket 2.Because ofthedivergent opinions on
theruleforthisheading, further study isnecessary. The
proponents (COL, ECandSG)willprovide Secwith
additional information andjustification.
USremark forheading 27.01 applies alsotothis
heading/subheading
(b)Chapter ruleapplies (CAN) Decision: Basket 2.G/RO/W/13
Page45A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(c)Supplementary criteria are
necessary. (EC)Refining operations and/or oneormore specific process(es)
such asvacuum distillation, cracking, reforming, etc., can
beconsidered substantial transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating to
thespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
Decision: Basket 2.Seeremark for(a).
(d)Seeproposal at27.07 (SG) Decision: Basket 2.Seeremark for(a).
27.09 Petroleum oilsandoilsobtained from
bituminous minerals, crude.(a)[thematerial thatdetermines the
classification ofthegood waswholly
obtained; or
each material inthegood which does
notoriginate inthatcountry has
undergone achange inclassification to
thisheading from another heading. ]
(b)Seeproposal at27.07 (SG)Decision: Basket 2.
ex27.09 Crude oilsobtained from bituminous
minerals (EC)Supplementary criteria arenecessary.
(EC)Destructive distillation ofbituminous materials canbe
considered asasubstantial transformation. (EC)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent (EC).G/RO/W/13
Page46A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
27.10 Petroleum oilsandoilsobtained from
bituminous minerals, other than
crude; preparations notelsewhere
specified orincluded, containing by
weight 70%ormore ofpetroleum
oilsorofoilsobtained from
bituminous minerals, these oilsbeing
thebasic constituents ofthe
preparations.(a)Change tothisheading from any
other heading; or
Change inthisheading, provided the
change results from achemical
reaction. (JPN)Change within thisheading byachemical reaction is
deemed tobeasubstantial transformation. (JPN)
Decision: Basket 2.Because ofthedivergent opinions on
theruleforthisheading, further study isnecessary. The
proponents (JPN, CAN, EC,COL andSG)willprovide
Secwithadditional information andjustification.
USremark forheading 27.01 applies alsotothis
heading/subheading
(b)Achange toheading 27.10 from
anyother heading; or
Achange toagood ofheading 27.10
from anyother good ofthatheading,
whether ornotthere isalsoachange
from anyother heading, provided that
theother good ofheading 27.10
undergoes achemical reaction. (CAN)Decision: Basket 2.Seeremark for(a).
(c)Supplementary criteria are
necessary. (EC)Refining operations and/or oneormore specific process(es)
such asvacuum distillation, cracking, reforming, etc., can
beconsidered substantial transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating to
thespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
Decision: Basket 2.Seeremark for(a).G/RO/W/13
Page47A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(d)Change tothisheading from any
other heading, except headings 27.10 to
27.15. (COL)Decision: Basket 2.Seeremark for(a).
(e)Seeproposal at27.07 (SG) Decision: Basket 2.Seeremark for(a).
ex27.10 Goods thathave been formulated by
blending (US)Seeproposed ruleforsplitheading
27.07 covering hydrocarbon products
obtained byblending. (US)Substantial transformation resulting from blending. (US)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent (US).G/RO/W/13
Page48A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
27.11 Petroleum gases andother gaseous
hydrocarbons.(a)Supplementary criteria are
necessary. (EC)Refining operations and/or oneormore specific process(es)
such asvacuum distillation, cracking, reforming, etc., can
beconsidered substantial transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating to
thespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
Decision: Basket 2.Forfurther study on(a)and(b)with
additional information andjustification tobeprovided by
theproponents (ECandCOL).
USremark forheading 27.01 applies alsotothis
heading/subheading
(b)Change tothisheading from any
other heading, except headings 27.10 to
27.15. (COL)Decision: Basket 2.Seeremark for(a).
ex27.11 Goods separated intoindividual gases
(US)Goods thathave undergone adeliberate
process ofseparation intoindividual
gases ofheading 27.11 andresidual
components resulting from such
separation aredeemed tobegoods of
thecountry where theseparation
occurred. (US)Substantial transformation resulting from separation. (US)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent (US).
-Liquefied :G/RO/W/13
Page49A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
2711.11 --Natural gas (a)Change tothissubheading from
anyother subheading, except
subheading 2711.21. (JPN)Change tothissubheading from subheading 2711.21 cannot
beconsidered assubstantial transformation because it
results from asimple operation. (JPN)
Decision: Basket 2.Forfurther study on(a)and(b)with
additional information andjustification tobeprovided by
theproponents (JPN andCAN).
(b)Achange tosubheading 2711.11
through 2711.19 from anyother
subheading, including another
subheading within thatgroup, except
from subheading 2711.21 or2711.29.
(CAN)Decision: Basket 2.Seeremark for(a).
2711.11-
2711.19Please refer totheHSfordescription
ofgoodsSupplementary criteria arenecessary
(US)Change from liquid togaseous state orviceversa isnot
deemed tobesubstantial transformation (US)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent (US)
2711.12 -
2711.19Please refer totheHSfordescription
ofgoods. (Sec)(a)Change tothese subheadings
(2711.12 -2711.19) from anyother
subheading, except subheading
2711.29. (JPN)Change tothissubheading from subheading 2711.29 cannot
beconsidered assubstantial transformation because it
results from asimple operation. (JPN)
Decision: Basket 2.Forfurther study on(a)and(b)with
additional information andjustification tobeprovided by
theproponents (JPN andCAN).G/RO/W/13
Page50A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(b)Achange tosubheading 2711.11
through 2711.19 from anyother
subheading, including another
subheading within thatgroup, except
from subheading 2711.21 or2711.29.
(CAN)Decision: Basket 2.Seeremark for(a).
-Ingaseous state :
2711.21 --Natural gas (a)Wholly obtained goods; or
Change tothissubheading from any
other subheading, except subheading
2711.11. (JPN)Change tothissubheading from subheading 2711.11 cannot
beconsidered assubstantial transformation, because it
results from asimple operation. (JPN)
Decision: Basket 2.Forfurther study on(a)and(b)with
additional information andjustification tobeprovided by
theproponents (JPN andCAN).
(b)Achange tosubheading 2711.21
through 2711.29 from anyother
subheading, including another
subheading within thatgroup, except
from subheading 2711.11 through
2711.19. (CAN)Decision: Basket 2.Seeremark for(a).
2711.29 --Other (a)Change tothissubheading from any
other subheading, except subheadings
2711.12 -2711.21. (JPN)Change tothissubheading from subheading 2711.12 to
2711.21 cannot beconsidered assubstantial transformation,
because itresults from asimple operation. (JPN)
Decision: Basket 2.Forfurther study on(a)and(b)with
additional information andjustification tobeprovided by
theproponents (JPN andCAN).G/RO/W/13
Page51A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(b)Achange tosubheading 2711.21
through 2711.29 from anyother
subheading, including another
subheading within thatgroup, except
from subheading 2711.11 through
2711.19. (CAN)Decision: Basket 2.Seeremark for(a).
2711.21-
2711.29Please refer totheHSfordescription
ofgoodsSupplementary criteria arenecessary Change from liquid togaseous state orviceversa isnot
deemed tobeasubstantial transformation (US)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent (US)
27.12 Petroleum jelly; paraffin wax, micro-
crystalline petroleum wax, slack wax,
ozokerite, lignite wax, peat wax,
other mineral waxes, andsimilar
products obtained bysynthesis orby
other processes, whether ornot
coloured.(a)Chapter ruleapplies. (CAN) Decision: Basket 2.
USremark forheading 27.01 applies alsotothis
heading/subheadingG/RO/W/13
Page52A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(b)Supplementary criteria are
necessary.
(EC)Refining operations and/or oneormore specific process(es)
such asvacuum distillation, cracking, reforming, etc., can
beconsidered substantial transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating to
thespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
Decision: Basket 2.Forfurther study on(b)and(c)with
additional information andjustification tobeprovided by
theproponents (ECandCOL).
(c)Change tothisheading from any
other
heading, except headings 27.10 to
27.15. (COL)Decision: Basket 2.Seeremark for(b).
27.13 Petroleum coke, petroleum bitumen
andother residues ofpetroleum oils
orofoilsobtained from bituminous
minerals.(a)Chapter ruleapplies. (CAN) Decision: Basket 2.
USremark forheading 27.01 applies alsotothis
heading/subheadingG/RO/W/13
Page53A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(b)Supplementary criteria are
necessary. (EC)Refining operations and/or oneormore specific process(es)
such asvacuum distillation, cracking, reforming, etc., can
beconsidered substantial transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating to
thespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
Decision: Basket 2.Forfurther study on(b)and(c)with
additional information andjustification tobeprovided by
theproponents (ECandCOL).
(c)Change tothisheading from any
other heading, except headings 27.10 to
27.15. (COL)Decision: Basket 2.Seeremark for(b).
-Petroleum coke :
2713.12 --Calcined Achange tosubheading 2713.12 from
subheading 2713.11. (US)Substantial transformation resulting from calcining. (US)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent (US).
27.14 Bitumen andasphalt, natural;
bituminous oroilshale andtar
sands; asphaltites andasphaltic
rocks.(a)Wholly obtained goods; or
Change tothisheading from anyother
heading. (JPN)Decision: Basket 2.Forfurther study on(a),(c)and(d)
withadditional information andjustification tobeprovided
bytheproponents (JPN, ECandCOL).
USremark forheading 27.01 applies alsotothis
heading/subheadingG/RO/W/13
Page54A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
(b)Chapter ruleapplies. (CAN) Decision: Basket 2.
(c)Supplementary criteria are
necessary. (EC)Refining operations and/or oneormore specific process(es)
such asvacuum distillation, cracking, reforming, etc., can
beconsidered substantial transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating to
thespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
Decision: Basket 2.Seeremark for(a).
(d)Change tothissubheading from any
other heading, except headings 27.10 to
27.15. (COL)Decision: Basket 2.Seeremark for(a).G/RO/W/13
Page55A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
27.15 Bituminous mixtures based on
natural asphalt, onnatural bitumen,
onpetroleum bitumen, onmineral
taroronmineral tarpitch (for
example, bituminous mastics, cut-
backs).(a)Change tothisheading from any
other heading, except subheading
2713.20, 2714.10 or2714.90. (JPN)Theproduction ofmixtures ofthisheading from
bituminous materials ofsubheadings 2713.20, 2714.10 or
2714.90 cannot beconsidered assubstantial transformation
because itresults from asimple mixing. (JPN)
Decision: Basket 2.Forfurther study on(a)to(c)with
additional information andjustification tobeprovided by
theproponents (JPN, CAN andEC).
USremark forheading 27.01 applies alsotothis
heading/subheading
(b)Achange toheading 27.15 from
anyother heading, except from
subheading 2713.20 orheading 27.14.
(CAN)Decision: Basket 2.Seeremark for(a).
(c)Supplementary criteria are
necessary. (EC)Refining operations and/or oneormore specific process(es)
such asvacuum distillation, cracking, reforming, etc., can
beconsidered substantial transformations.
Mixing processes canbeconsidered assubstantial
transformation iftheyfulfil certain conditions, relating to
thespecific qualities oftheresulting products andthe
equipment ofplants. (EC)
Decision: Basket 2.Seeremark for(a).G/RO/W/13
Page56A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation is
considered totakeplace inthecountry
inwhich:Remarks orjustification oftheprevious columns
ex27.15 Goods ofheading 27.15 (US) Blending ofmaterials ofsubheading
2713.20 orheading 27.14. (US)Blending nottobeconsidered substantial transformation.
(US)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent (US).
27.16 Electrical energy. (optional heading) Chapter ruleapplies. (CAN) (COL) Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponents (CAN andCOL).
TheECandARG Delegates reserved their position.
USremark forheading 27.01 applies alsotothis
heading/subheadingSECTION VI OF THE HARMONIZED SYSTEM
(Chapters 28-38)
PRODUCTS OF THE CHEMICAL OR ALLIED INDUSTRIES
Section Notes:
Chapter 28: Inorganic Chemicals; Organic or Inorganic Compounds of Precious
Metals, or Rare-Earth Metals, or Radioactive Elements or of Isotopes
Chapter 29: Organic Chemicals
Chapter 30: Pharmaceutical Products
Chapter 31: Fertilisers
Chapter 32: Tanning or Dyeing Extracts; Tannins and Their Derivatives; Dyes,
Pigments and other Colouring Matter; Paints and Varnishes; Putty and
Other Mastics; Inks
Chapter 33: Essential Oils and Resinoids: Perfumery, Cosmetic or Toilet
Preparations
Chapter 34: Soap, Organic Surface-Active Agents, Washing Preparations,
Lubricating Preparations, Artificial Waxes, Prepared Waxes, Polishing
or Scouring Preparations, Candles and Similar Articles, Modelling
Paste, "Dental Waxes" and Dental Preparations with a Basis of Plaster
Chapter 35: Albuminoidal Substances; Modified Starches; Glues; Enzymes
Chapter 36: Explosives; Pyrotechnic Products; Matches; Pyrophoric Alloys; Certain
Combustible Preparations
Chapter 37: Photographic or Cinematographic Goods
Chapter 38: Miscellaneous Chemical ProductsG/RO/W/13
Page 57
 SECTION VII OF THE HARMONIZED SYSTEM
(Chapters 39-40)
PLASTICS AND ARTICLES THEREOF; RUBBER AND ARTICLES THEREOF
Section Notes:
Chapter 39: Plastics and Articles Thereof: Rubber and Articles Thereof
Chapter 40: Rubber and Articles ThereofG/RO/W/13
Page 58G/RO/W/13
Page59SECTION VIII OFTHE HARMONIZED SYSTEM
(Chapters 41-43)
Raw hides andskins, leather,
furskins andarticles thereof;
saddlery andharness; travel goods,
handbags andsimilar containers;
articles ofanimal gut(other than silk-worm gut)
Section Notes :
Chapter 41
Chapter Notes:
A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
Chapter 41 Raw hides andskins (other than
furskins) andleatherChange toheadings ofthisChapter
from anyother heading, except the
following:Decision: Basket 2.Forfurther study toascertain if
tanning orretanning ofpretanned leather mayconfer
origin. Members arerequested tofurnish Secwith
additional information. SGindicated apreference fora
rulebased onchange atthesubheading level.
41.01 Raw hides andskins ofbovine or
equine animals (fresh, orsalted,
dried, limed, pickled orotherwise
preserved, butnottanned,
parchment-dressed orfurther
prepared), whether ornotdehaired
orsplit.Change tothisheading from anyother
Chapter.Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bytheoriginal
proponents (JPN andCAN). ARG expressed his
reservations. Hewillforward awritten texttostate his
view.G/RO/W/13
Page60A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
41.02 Raw skins ofsheep orlambs (fresh,
orsalted, dried, limed, pickled or
otherwise preserved, butnottanned,
parchment-dressed orfurther
prepared), whether ornotwith wool
onorsplit, other than those excluded
byNote 1(c)tothisChapter.Change tothisheading from anyother
Chapter.Decision: Basket 2.Forfurther study taking intoaccount
theproposals ofCHandECregarding removal ofwool
from sheep andlamb skins. USconsidered thatthe
proposals for4102.21 and4102.29 could becombined to
clarify theECproposal regarding removal ofwool asbeing
origin conferring rather thanpickling asbeing origin
conferring. ARG registered areservation andwillforward
atexttoSec. Alloriginal proponents arerequested tohelp
byfurnishing Secwithadditional information and
justification.
ex41.02 Raw skins ofsheep orlambs (fresh, or
salted, dried, limed, pickled or
otherwise preserved, butnottanned,
parchment-dressed orfurther prepared),
whether ornotwithwool onorsplit,
other thanthose excluded byNote 1(c)
tothisChapter, without wool on.(CH)Supplementary criteria arenecessary.
(CH)Theremoval ofwool from askinsubstantially changes its
characteristics andmakes itsuitable forvarious uses. (CH)
Decision: Basket 2.Seeremark forheading 41.02.
4102.21 --Pickled Change tothissubheading from any
other subheading. (EC)Theremoval ofwool from sheep orlamb skins withwool
oncanbeconsidered asasubstantial transformation. (EC)
Decision :Basket 2.Seeremark forheading 41.02.
4102.29 --Other Change tothissubheading from any
other subheading. (EC)Theremoval ofwool from sheep orlamb skins withwool
oncanbeconsidered asasubstantial transformation. (EC)
Decision :Basket 2.Seeremark forheading 41.02.G/RO/W/13
Page61A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
41.03 Other rawhides andskins (fresh, or
salted, dried, limed, pickled or
otherwise preserved, butnottanned,
parchment-dressed orfurther
prepared), whether ornotdehaired
orsplit, other than those excluded by
Note 1(b)or1(c)tothisChapter.Achange tothisheading from any
other Chapter.Decision :Basket 2.Seeremark forheading 41.02.G/RO/W/13
Page62A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
41.04 Leather ofbovine orequine animals,
without hairon,other than leather of
heading No.41.08 or41.09.(a)Change tothese headings (41.04 -
41.07) from anyother heading; or
Change tofinished leather ofthese
headings from pretanned leather of
thesame heading; or
Other supplementary criteria are
necessary. (JPN)Change tofinished leather from pretanned leather is
deemed tobeasubstantial transformation from the
technical point ofview. (JPN)
Decision: Basket 2.Forfurther study tosynthesize the
views ofproponents regarding pre-tanning, tanning,
finishing orretanning ofpre-tanned leather asorigin
conferring. Proponents whohadrules forthisheading and
subheadings arerequested tofurnish Secwithfurther
information andjustification.
(b)Achange topretanned leather of
headings 41.04 through 41.07 from
hides ofskins ofheadings 41.01 to
41.03 isdeemed nottobeorigin-
conferring.
Achange within headings 41.04
through 41.07, including achange
within thesame heading, which
results from theretanning ofpre-
tanned leather, isdeemed tobe
origin-conferring. (US)Pre-tanning results inaproduct thatmust besubjected to
further tanning. Itshould notbeconsidered asubstantial
transformation even though achange ofheading from
41.01, 41.02 or41.03 hasoccurred. (US)
Decision: Basket 2.Seeremark for41.04.G/RO/W/13
Page63A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
ex41.04 Leather ofbovine orequine animals,
without hairon,retanned orfinished,
other thanofheading 41.08 or41.09.:
-Retanned (CH) (EC)(a)Supplementary criteria are
necessary. (CH)Theretanning ofleathers andpre-tanned skins ofheading
41.04 confers upon them substantially different properties
anduses. (CH)
Decision: Basket 2.Seeremark for41.04. TheNZ
Delegate indicated hecould furnish information tohelpin
thestudy.
(b)Change tothese splitheadings from
anyother splitheading ofthese
headings (41.04 to41.07) (EC)Retanning ofpre-tanned ortanned leather ofthisheading
canbeconsidered asasubstantial transformation. (EC)
Decision: Basket 2.Seeremark for41.04.
ex41.04 -Finished(CH) (EC) (a)Supplementary criteria are
necessary. (CH)Thefinishing oftanned skins prepared them fordirect use
andconfers upon them substantially different properties and
uses. (CH)
Decision: Basket 2.Seeremark for41.04.
(b)Change tothissplitheading from
anyother splitheading ofthese
headings (41.04 to41.07) (EC)Finishing processes oftanned leather, such asfat-liquoring,
dyeing, patenting, canbeconsidered asasubstantial
transformation. (EC)
Decision :Basket 2.Seeremark for41.04.
4104.10 -Whole bovine skinleather, ofaunit
surface areanotexceeding 28square
feet
(2.6m2)Achange tosubheading 4104.10 from
anyother subheading. (CAN)Decision :Basket 2.Seeremark for41.04.
-Other bovine leather andequine
leather,
tanned orretanned butnotfurther
prepared, whether ornotsplit:G/RO/W/13
Page64A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
4104.21 -
4104.29Please refer totheHSfordescription
ofgoods. (Sec)Achange tosubheading 4104.21
through
4104.29 from anysubheading outside
thatgroup. (CAN)Decision: Basket 2.Seeremark for41.04.
-Other bovine leather andequine
leather,
parchment-dressed orprepared after
tanning :
4104.31 -
4104.39Please refer totheHSfordescription
ofgoods. (Sec)Achange tosubheading 4104.31
through 4104.39 from anysubheading
outside thatgroup. (CAN)Decision :Basket 2.Seeremark for41.04.
41.05 Sheep orlamb skinleather, without
wool on,other than leather of
heading No.41.08 or41.09.(a)Change tothese headings (41.04 -
41.07) from anyother heading; or
Change tofinished leather ofthese
headings from pretanned leather ofthe
same heading; or
Other supplementary criteria are
necessary. (JPN)Change tofinished leather from pretanned leather is
deemed tobeasubstantial transformation from the
technical point ofview. (JPN)
Decision: Basket 2.Forfurther study toascertain ifpre-
tanning, tanning, retanning orfinishing ofpre-tanned
leather confers origin. Additional information and
justification tobeprovided bytheproponents.
TheNZDelegate entered areservation pending further
research.G/RO/W/13
Page65A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
(b)Achange topretanned leather of
headings 41.04 through 41.07 from
hides ofskins ofheadings 41.01 to
41.03 isdeemed nottobeorigin-
conferring.
Achange within headings 41.04
through 41.07, including achange
within thesame heading, which results
from theretanning ofpre-tanned
leather, isdeemed tobeorigin-
conferring. (US)Pre-tanning results inaproduct thatmust besubjected to
further tanning. Itshould notbeconsidered asubstantial
transformation even though achange ofheading from
41.01, 41.02 or41.03 hasoccurred. (US)
Decision: Basket 2.Seeremark for(a).
ex41.05 Sheep orlamb skinleather, without
wool on,retanned orfinished, other
thanleather ofheading 41.08 or41.09
:
-Retanned (CH) (EC)(a)Supplementary criteria are
necessary. (CH)Theretanning ofleathers andpre-tanned skins ofheading
41.05 confers upon them substantially different properties
anduses. (CH)
Decision: Basket 2.Forfurther study. Also seeremark
for(a)forheading 41.05.
(b)Change tothese splitheadings from
anyother splitheading ofthese
headings (41.04 to41.07) (EC)Retanning ofpre-tanned ortanned leather ofthisheading
canbeconsidered asasubstantial transformation. (EC)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.05.
ex41.05 -Finished (CH) (EC) (a)Supplementary criteria are
necessary. (CH)Thefinishing oftanned skins prepared them fordirect use
andconfers upon them substantially different properties and
uses. (CH)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.05.G/RO/W/13
Page66A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
(b)Change tothese splitheadings from
anyother splitheading ofthese
headings (41.04 to41.07) (EC)Finishing processes oftanned leather, such asfat-liquoring,
dyeing, patenting, canbeconsidered asasubstantial
transformation. (EC)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.05.
-Tanned orretanned butnotfurther
prepared, whether ornotsplit:
4105.11 --Vegetable pre-tanned Achange tosubheading 4105.11
through 4105.19 from anysubheading
outside thatgroup. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.05.
4105.12 --Otherwise pre-tanned Achange tosubheading 4105.11
through 4105.19 from anysubheading
outside thatgroup. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.05.
4105.19 --Other Achange tosugbheading 5105.11
through 5105.19 from anysubheading
outside thegroup. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.05.
4105.20 -Parchment-dressed orprepared
after tanningAchange tosubheading 4105.20 from
anyother subheading. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.05.
41.06 Goat orkidskinleather, without
hairon,other than leather of
heading No.41.08 or41.09.(a)Change tothese headings (41.04 -
41.07) from anyother heading; or
Change tofinished leather ofthese
headings from pretanned leather ofthe
same heading; or
Other supplementary criteria are
necessary. (JPN)Decision: Basket 2.Forfurther study toascertain ifpre-
tanning, tanning, retanning orfinishing ofpre-tanned
leather confers origin. Additional information and
justification tobeprovided bytheproponents.G/RO/W/13
Page67A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
(b)Achange topretanned leather of
headings 41.04 through 41.07 from
hides ofskins ofheadings 41.01 to
41.03 isdeemed nottobeorigin-
conferring.
Achange within headings 41.04
through 41.07, including achange
within thesame heading, which results
from theretanning ofpre-tanned
leather, isdeemed tobeorigin-
conferring. (US)Pre-tanning results inaproduct thatmust besubjected to
further tanning. Itshould notbeconsidered asubstantial
transformation even though achange ofheading from
41.01, 41.02 or41.03 hasoccurred. (US)
Decision: Basket 2.Seeremark for(a).
ex41.06 Goat orkidskinleather without hair
on,retanned orfinished, other than
leather ofheading No.41.08 or41.09 :
-Retanned (CH) (EC)(a)Supplementary criteria are
necessary. (CH)Theretanning ofleathers andpre-tanned skins ofheading
41.06 confers upon them substantially different properties
anduses. (CH)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.06.
(b)Change tothese splitheadings from
anyother splitheading ofthese
headings (41.04 to41.07) (EC)Retanning ofpre-tanned ortanned leather ofthisheading
canbeconsidered asasubstantial transformation. (EC)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.06.
ex41.06 -Finished (CH) (EC) (a)Supplementary criteria are
necessary. (CH)Thefinishing oftanned skins prepared them fordirect use
andconfers upon them substantially different properties and
uses. (CH)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.06.G/RO/W/13
Page68A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
(b)Change tothese splitheadings from
anyother splitheading ofthese
headings (41.04 to41.07) (EC)Finishing processes oftanned leather, such asfat-liquoring,
dyeing, patenting, canbeconsidered asasubstantial
transformation. (EC)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.06.
-Tanned orretanned butnotfurther
prepared, whether ornotsplit:
4106.11 --Vegetable pre-tanned Achange tosubheading 4106.11
through 4106.19 from anysubheading
outside thatgroup. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.06.
4106.12 --Otherwise pre-tanned Achange tosubheading 4106.11
through 4106.19 from anysubheading
outside thatgroup. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.06.
4106.19 --Other Achange tosubheading 4106.11
through 4106.19 from anysubheading
outside thatgroup. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.06.
4106.20 -Parchment-dressed orprepared
after tanningAchange tosubheading 4106.20
from anyother subheading. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.06.G/RO/W/13
Page69A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
41.07 Leather ofother animals, without
hairon,other than leather of
heading No.41.08 or41.09.(a)Change tothese headings (41.04 -
41.07) from anyother heading; or
Change tofinished leather ofthese
headings from pretanned leather ofthe
same heading; or
Other supplementary criteria are
necessary. (JPN)Change tofinished leather from pretanned leather is
deemed tobeasubstantial transformation from the
technical point ofview. (JPN)
Decision: Basket 2.Forfurther study toascertain ifpre-
tanning, tanning, retanning orfinishing ofpre-tanned skins
confers origin. Proponents arerequested toprovide Sec
withadditional information orjustification.
(b)Achange topretanned leather of
headings 41.04 through 41.07 from
hides ofskins ofheadings 41.01 to
41.03 isdeemed nottobeorigin-
conferring.
Achange within headings 41.04
through 41.07, including achange
within thesame heading, which results
from theretanning ofpre-tanned
leather, isdeemed tobeorigin-
conferring. (US)Pre-tanning results inaproduct thatmust besubjected to
further tanning. Itshould notbeconsidered asubstantial
transformation even though achange ofheading from
41.01, 41.02 or41.03 hasoccurred. (US)
Decision: Basket 2.Forfurther study. Also seeremark
above.
ex41.07 Leather ofother animals, without hair
on,retanned orfinished, other than
leather ofheading No.41.08 or41.09:
-Retanned (CH) (EC)(a)Supplementary criteria are
necessary. (CH)Theretanning ofleathers andpre-tanned skins ofheading
41.07 confers upon them substantially different properties
anduses. (CH)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.G/RO/W/13
Page70A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
(b)Change tothese splitheadings from
anyother splitheading ofthese
headings (41.04 to41.07) (EC)Retanning ofpre-tanned ortanned leather ofthisheading
canbeconsidered asasubstantial transformation. (EC)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.
ex41.07 -Finished (CH) (EC) (a)Supplementary criteria are
necessary. (CH)Thefinishing oftanned skins prepared them fordirect use
andconfers upon them substantially different properties and
uses. (CH)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.
(b)Change tothese splitheadings from
anyother splitheading ofthese
headings (41.04 to41.07) (EC)Finishing processes oftanned leather, such asfat-liquoring,
dyeing, patenting, canbeconsidered asasubstantial
transformation. (EC)
Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.
4107.10 -Ofswine
ex14107.10 -Ofswine, excluding parchment-
dressed
orprepared after tanning. (CAN)Achange tosubheading ex14107.10
from anyother heading. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.
ex24107.10 -Ofswine, parchment-dressed or
prepared after tanning. (CAN)Achange tosubheading ex24107.10
from anyother heading; or
Achange tosubheading ex24107.10
from subheading ex14107.10. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.G/RO/W/13
Page71A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
-Ofreptiles :
4107.21 --Vegetable pre-tanned Achange tosubheading 4107.21 from
anyother heading. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.
4107.29 --Other
ex14107.29 --Ofreptiles, other, excluding
parchment-dressed orprepared after
tanning. (CAN)Achange tosubheading ex14107.29
from anyother heading. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.
ex24107.29 --Ofreptiles, other, parchment-
dressed orprepared after tanning.
(CAN)Achange tosubheading ex24107.29
from anyother heading; or
Achange tosubheading ex24107.29
from subheading ex14107.29. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.
4107.90 -Ofother animals
ex14107.90 -Ofother animals, excluding
parchment-dressed orprepared after
tanning. (CAN)Achange tosubheading ex14107.90
from anyother heading. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.G/RO/W/13
Page72A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification oftheprevious columns
ex24107.90 -Ofother animals, parchment-
dressed orprepared after tanning.
(CAN)Achange tosubheading ex24107.90
from anyother heading; or
Achange tosubheading ex24107.90
from subheading ex14107.90. (CAN)Decision: Basket 2.Forfurther study. Also seeremark
forheading 41.07.
41.08 Chamois (including combination
chamois) leather.Change tothisheading from anyother
heading.Decision: Basket 1.
41.09 Patent leather andpatent laminated
leather; metallised leatherChange oftothisheading from any
other heading, [except headings 41.04
and41.07. ]Decision: Basket 2.Forfurther study. ARG reserved its
position, considering thatchanges from headings 41.04
through 41.07 should beexcluded because theprocessing
involved isnotasubstantial transformation.
41.10 Parings andother waste ofleather or
ofcomposition leather, notsuitable
forthemanufacture ofleather
articles; leather dust, powder and
flour.[(a)thematerial thatdetermines the
classification ofthegoods waswholly
obtained; or
(b)each material inthegood which
does notoriginate inthatcountry has
undergone achange inclassification to
thisheading form another heading ]Residues from themanufacture ofleather orskins ofother
headings. (CH)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bytheoriginal
proponents (ECandCH).
41.11 Composition leather with abasis of
leather orleather fibre, inslabs,
sheets orstrip, whether ornotin
rolls.Chapter ruleapplies. Decision: Basket 1.G/RO/W/13
Page73CHAPTER 42
Chapter Notes :
A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification of
theprevious columns
Chapter 42 Articles ofleather; saddlery and
harness;
travel goods, handbags andsimilar
containers; articles ofanimal
gut(other than silk-worm gut).Change totheheadings ofthisChapter from any
other heading, except thefollowing:Decision: Basket 2.ThisChapter ruleis
provisionally adopted. Toberevisited later.
42.01 Saddlery andharness foranyanimal
(including traces, leads, knees pads,
muzzles, saddle clothes, saddle bags,
dogcoats andthelike), ofany
material.Chapter ruleapplies. Two major operations takeplace inthis
heading: (a)thecutting oftheleather orskin
intoshape, (b)assembling theleather to
make aspecific product. (CH)
Decision: Basket 2.Some members had
reservations onCH'sproposal (seeabove).
Problems concerning alsoparts andassembly
were identified. They needed tobe
addressed, possibly byreference tothe
general rules orvalue added criteria. The
rulewasputunder Basket 2,pending further
study.G/RO/W/13
Page74A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification of
theprevious columns
42.02 Trunks, suit-cases, vanity-cases,
executive-cases, brief-cases, school
satchels, spectacle cases,
binocular cases, camera cases,
musical instrument cases,
guncases, holsters andsimilar
containers; travelling-bags,
toilet bags, rucksacks, handbags,
shopping-bags, wallets, purses, map-
cases, cigarette-cases,
tobacco-pouches, toolbags,
sports bags, bottle-cases,
jewellery boxes, powder-boxes,
cutlery cases andsimilar
containers, ofleather orof
composition leather, ofsheeting of
plastics, oftextile materials,
ofvulcanised fibre orof
paperboard, orwholly ormainly
covered with such materials orwith
paper.Supplementary criteria arenecessary. (CH) (EC) Seecomment forheading 42.01. (CH)
Decision: Examination deferred .The
goods ofthisheading involve textile
materials andshould beconsidered together
withother origin rules proposed fortextile
articles.
42.03 Articles ofapparel andclothing
accessories, ofleather orof
composition leather.Supplementary criteria arenecessary. (CH) Theexact operations tobecarried outmust
bedefined. (CH)
Decision: Examination deferred .Therule
forthisheading tobeconsidered together
withtherules forother Chapters oftextile
articles.G/RO/W/13
Page75A B C D
HSCode
numberDescription ofgoods Thesubstantial transformation isconsidered
totakeplace inthecountry inwhichRemarks orjustification of
theprevious columns
ex42.03 Articles ofapparel, ofleather orof
composition leather (EC)Notapplicable. Complete making-up. (EC) Tobeconsidered asasubstantial
transformation, themanufacture ofarticles of
apparel hastoinclude alloperations
following thecutting oftheleather or
furskins. (EC)
Decision: Examination deferred .See
remark above.
42.04 Articles ofleather orof
composition leather, ofakind
used inmachinery ormechanical
appliances orforother technical
uses.Supplementary criteria arenecessary. (CH) Decision: Basket 2.Forfurther study with
additional information andspecific examples
tobeprovided bymembers andthe
proponent (CH).
CHclarified thateither oneofthetwo
operations (cutting andassembly) mentioned
intherules proposed forheadings 42.01 -
42.06 could beenough toconfer origin.
42.05 Other articles ofleather orof
composition leather.Supplementary criteria arenecessary. (CH) Decision: Basket 2.Forfurther study.
Members were called ontoprovide Secwith
additional information.
42.06 Articles ofgut(other than silk-worm
gut), ofgoldbeater 'sskin, of
bladders oroftendons.Chapter ruleapplies. Decision: Basket 1.G/RO/W/13
Page76CHAPTER 43
Chapter Notes:
A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
to
takeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
Chapter 43 Furskins andartificial fur;
manufactures thereofChange totheheadings ofthisChapter
from anyother heading, except the
following:Decision: Basket 1.
43.01 Raw furskins (including heads, tails,
paws andother pieces orcuttings,
suitable forfurriers 'use), other than
rawhides andskins ofheading No.
41.01, 41.02 or41.03.Change tothisheading from anyother
Chapter.Decision: Basket 2.ARG reserved itsposition. He
suggested thatthe"change" should befrom rawskin.
Further study isrequired withadditional information tobe
provided bymembers.
43.02 Tanned ordressed furskins
(including heads, tails, paws and
other pieces orcuttings),
unassembled, orassembled (without
theaddition ofother materials) other
than those ofheading No.43.03.Chapter ruleapplies, except 4302.30. Decision: Basket 1.G/RO/W/13
Page77A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
to
takeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
4302.30 -Whole skins andpieces orcuttings
thereof, assembled(a)Change tothissubheading from any
other
subheading. (CH) (EC) (HK) JPN)Theassembly ofunassembled fur(subheadings 4302.11,
4302.12, 4302.13, 4302.19, 4302.20) isacomplex
operation conferring asubstantially different use.(CH)
Themanufacture ofassembled tanned ordressed furskins
ofthissubheading byassembling non-assembled tanned or
dressed furskins classified inthisheading canbeconsidered
asasubstantial transformation. (EC)
Change todropped skins from tanned skins isdeemed tobe
asubstantial transformation from atechnical point ofview.
Dropped skins areskins which have been cutintostrips,
andreassembled intheir original order soastoobtained a
longer skin. (JPN)
Assembly ofnon-assembled tanned ordressed furskins is
considered tobesufficient forsubstantial transformation.
(HK)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponents.
(b)Goods ofsubheading 4302.30 that
are
notwholly obtained inonecountry are
deemed tobegoods ofthecountry
where non-originating materials have
undergone achange ofclassification to
thatsubheading from subheadings
4302.11 through 4302.19. (US)Theassembly offurskins (including theprocess of
"dropping" toobtain alonger butnarrower skin) intosizes
suitable forthemanufacture ofarticles (i.e., clothing)
involves substantial transformation andisgranted origin by
therulefor4302.30. (US)
Decision: Basket 2.Forfurther study withadditional
information andjustification tobeprovided bythe
proponent.G/RO/W/13
Page78A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
to
takeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
43.03 Articles ofapparel, clothing
accessories andother articles of
furskin.(a)Achange toheading 43.02 through
43.04 from anyother heading,
including another heading within that
group. (CAN)Decision: Examination deferred .Tobeconsidered
together withtherules fortextile articles ofother Chapters.
(b)Supplementary criteria are
necessary. (CH)Theexact operations tobecarried outwithin the
framework ofheading 43.03 ought tobeclearly defined.
(CH)
Decision: Examination deferred .
(c)Goods ofheading 4303 ofthis
Chapter which were wholly
assembled from acollection of
parts, which collection was
classifiable asanunassembled good
byvirtue ofGeneral Interpretative
Rule 2(a),aredeemed tohave
originated inthecountry where the
goods were wholly assembled. (US)Thisruleprovides origin fortheassembly ofcomponent
"kits" (classifiable inheading 43.03) intoarticles ofthat
heading. However, inspecifying "wholly assembled" the
ruledoes notgrant origin tocountries inwhich goods are
merely finished byattaching hardware orother parts or
accessories ontounfinished products ofheading 43.03.
(US)
Decision: Examination deferred .
(d)Achange tothisheading from non
assembled parts ofthesame heading.
(HK)Assembly ofnon-assembled parts intothefinished article is
sufficient forsubstantial transformation. (HK)
Decision: Examination deferred .G/RO/W/13
Page79A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
to
takeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
ex43.03 Articles ofapparel, offurskin (EC) Not-applicable. Complete making-up.
(EC)Tobeconsidered asasubstantial transformation, the
manufacture ofarticles ofapparel hastoinclude allthe
operations following thecutting oftheleather orfurskins.
(EC)
Decision: Examination deferred .
43.04 Artificial furandarticles thereof. Achange toheading 43.02 through
43.04 from anyother heading,
including another heading within that
group. (CAN)Decision: Examination deferred .Tobeconsidered
together withtherules fortextile articles ofother Chapters.
ex43.04 Articles ofartificial fur(CH) (EC) (a)Supplementary criteria are
necessary. (CH)Themanufacture ofarticles from artificial fur(wool, hair
sewn ontofabric orleather toimitate fur)must alsobe
considered assubstantial transformation conferring origin.
(CH)
Decision: Examination deferred .
(b)Change tothissplitheading from
anyother splitheading ofthisheading.
(EC)Themanufacture ofarticles ofthissplitheading from
artificial furofthisheading canbeconsidered asa
substantial transformation. (EC)
Decision: Examination deferred .SECTION IX OF THE HARMONIZED SYSTEM
(Chapters 44-46)
WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL: CORK AND
ARTICLES OF CORK; MANUFACTURES OF STRAW, OF ESPARTO OR OF
OTHER PLAITING MATERIALS; BASKETWARE AND WICKERWORK
Section Notes:
Chapter 44: Wood and Articles of Wood; Wood Charcoal
Chapter 45: Cork and Articles of Cork
Chapter 46: Manufactures of Straw, of Esparto or of other Plaiting materials;
Basketware and Wickerwork
SECTION X OF THE HARMONIZED SYSTEM
(Chapters 47-49)
PULP OF WOOD OR OF OTHER FIBROUS CELLULOSIC MATERIAL; WASTE
AND SCRAP OF PAPER OR PAPERBOARD; PAPER AND PAPERBOARD AND
ARTICLES THEREOF
Section Notes:
Chapter 47: Pulp of Wood or of Other Fibrous Cellulosic Material; Waste and
Scrap of Paper or Paperboard
Chapter 48: Paper and Paperboard; Articles of Paper Pulp, of Paper or of
Paperboard
Chapter 49: Printed Books, Newspaper, Pictures and Other Products of the
Printing Industry; Manuscripts, Typescripts and PlansG/RO/W/13
Page 80SECTION XI OF THE HARMONIZED SYSTEM
(Chapters 50-63)
TEXTILES AND TEXTILE ARTICLES (Chapter 50-63)
Section Notes:
Chapter 50: Silk
Chapter 51: Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven
Fabric
Chapter 52: Cotton
Chapter 53: Other Vegetable Textile Fibres; Paper Yarn and Woven Fabrics of
Paper Yarn
Chapter 54: Man-Made Filaments
Chapter 55: Man-Made Staple Fibres
Chapter 56: Wadding, Felt and Nonwovens; Special Yarns; Twine, Cordage,
Ropes and Cables and Articles Thereof
Chapter 57: Carpets and Other Textile Floor Coverings
Chapter 58: Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries;
Trimmings; Embroidery
Chapter 59: Impregnated, Coated Covered or Laminated Textile Fabrics;
Textile Articles of a kind suitable for Industrial Use
Chapter 60: Knitted or Crocheted Fabrics
Chapter 61: Articles of Apparel and Clothing Accessories, Knitted or Crocheted
Chapter 62: Articles of Apparel and Clothing Accessories Not Knitted or
CrochetedG/RO/W/13
Page 81Chapter 63: Other Made Up Textile Articles; Sets; Worn Clothing and Worn
Textile Articles; Rags
SECTION XII OF THE HARMONIZED SYSTEM
(Chapters 64-67)
FOOTWEAR, HEADGEAR, UMBRELLAS, SUN UMBRELLAS, WALKING-
STICKS, SEAT-STICKS, WHIPS, RIDING-CROPS AND PARTS THEREOF;
PREPARED FEATHERS AND ARTICLES MADE THEREWITH; ARTIFICIAL
FLOWERS; ARTICLES OF HUMAN HAIR
Section Notes:
Chapter 64: Footwear, Gaiters and the Like; Parts of Such Articles
Chapter 65: Headgear and Parts Thereof
Chapter 66: Umbrellas, Sun Umbrellas, Walking-Sticks, Seat-Sticks, Whips,
Riding-Crops and Parts Thereof
Chapter 67: Prepared Feathers and Down and Articles Made of Feathers or of
Down; Artificial Flowers; Articles of Human HairG/RO/W/13
Page 82 SECTION XIII OF THE HARMONIZED SYSTEM
(Chapters 68-70)
ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR
MATERIALS; CERAMIC PRODUCTS; GLASS AND GLASSWARE
Section Notes:
Chapter 68: Articles of Stone, Plaster, Cement, Asbestos, Mica, or similar
Materials
Chapter 69: Ceramic Products
Chapter 70: Glass and Glassware
SECTION XIV OF THE HARMONIZED SYSTEM
(Chapter 71)
SECTION XIV NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-
PRECIOUS STONES, PRECIOUS METALS, METALS CLAD WITH PRECIOUS
METAL, AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN
Section Notes:
Chapter 71: Natural or Cultured Pearls, Precious or Semi-Precious Stones,
Precious Metals, Metals clad with Precious Metal, and Articles
Thereof; Imitation Jewellery; CoinG/RO/W/13
Page 83G/RO/W/13
Page84SECTION XVOFTHE HARMONIZED SYSTEM
(Chapters 72-83)
Base metals andarticles ofbase metal
Section Notes :
CHAPTER 72
Chapter Notes :
A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
Chapter 72 Iron andsteel Change totheheadings ofthisChapter
from anyother heading, except the
following :Decision :Basket 1.*
72.01 Pigironandspiegeleisen inpigs,
blocks orother primary forms.Chapter ruleapplies Decision :Basket 1.
72.02 Ferro-alloys. Chapter ruleapplies Decision :Basket 1.
72.03 Ferrous products obtained bydirect
reduction ofironoreandother
spongy ferrous products, inlumps,
pellets orsimilar forms; ironhaving
aminimum purity byweight of99.94
%,inlumps, pellets orsimilar forms.Chapter ruleapplies Decision :Basket 1.
*(SG) proposed arulebased ontheprinciple ofachange oftariff classification atsubheading level andagreed toprovide adetailed justification oftheir proposal foreach
heading orsubheading forwhich theywould propose thisruleG/RO/W/13
Page85A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.04 Ferrous waste andscrap; remelting
scrap ingots ofironorsteel[thematerial thatdetermines the
classification ofthegood waswholly
obtained; or
each material inthegood which does
notoriginate inthatcountry, has
undergone achange inclassification to
thisheading from another heading.]Decision :Basket 2.
TheECprovisionally accepted thisChapter rule. It
reserved theright tocome back toitsinitial proposal:
"wholly obtained goods".G/RO/W/13
Page86A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.05 Granules andpowders, ofpigiron,
spiegeleisen, ironorsteel.(a)Supplementary criteria are
necessary (EC)Decision :Basket 2.
(b)Chapter ruleapplies (CAN) (JPN)
7205.10 -Granules
-Powders :
7205.21 --Ofalloy steel Change tothissubheading from any
other subheading (CH)Themanufacture ofpowder from granules constitutes
substantial transformation. (CH)
ex7205.21 --Mixed powders ofalloy steel Supplementary criteria arenecessary
(CH)Themixing ofpowders ofalloy steel isasubstantial
transformation involving therecasting andatomizing ofthe
castalloy (CH)
7205.29 --Other Change tothissubheading from any
other subheading (CH)Themanufacture ofpowder from granules constitutes
substantial transformation. (CH)
ex7205.29 --Other mixed powders Supplementary criteria arenecessary
(CH)Themixing ofpowders ofalloy steel isasubstantial
transformation involving therecasting andatomizing ofthe
castalloy (CH)
72.06 Iron andnon-alloy steel iningots or
other primary forms (excluding iron
ofheading No.72.03).Chapter ruleapplies Decision :Basket 1.
72.07 Semi-finished products ofironor
non-alloy steel.(a)Change tothisheading from any
other heading, except from heading
72.06
(CAN) (JPN) (US)Decision :Basket 2.
(b)Change tothisheading from any
other heading except from
headings 72.01 through 72.05
(EC)Only thetransformation ofmaterials ofheadings 72.01 to
72.05 isconsidered tobeasubstantial transformation (EC)
(c)Chapter ruleapplies (PH) (SG)G/RO/W/13
Page87A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.08 Flat-rolled products ofironornon-
alloy steel, ofawidth of600mmor
more, hot-rolled, notclad, plated or
coated.(a)Chapter ruleapplies Decision :Basket 2.
(b)Change tothisheading onlyfrom
headings 72.01 through 72.07
(EC)
72.09 Flat-rolled products ofironornon-
alloy steel, ofawidth of600mmor
more, cold-rolled (cold-reduced), not
clad, plated orcoated.(a)Chapter ruleapplies Decision :Basket 2.
(b)Change tothisheading from
headings 72.01 through 72.08
(EC)
72.10 Flat-rolled products ofironornon-
alloy steel, ofawidth of600mmor
more, clad, plated orcoated.(a)Chapter ruleapplies (IN)(PH)
(NO) (NZ) (JPN)Decision :Basket 2.
(b)Change tothisheading from any
other heading except from headings
72.08 or72.09 (CAN)
(c)Change tothisheading onlyfrom
headings 72.01 through 72.09 (EC)
(d)Change tothesubheadings ofthis
heading from anyother subheading
including another subheading within
thisheading (NO) (KOR)
ex72.10 Clad flat-rolled products ofironor
non-alloy steelChange tothissplitheading from any
other splitheading ofthisheading (US)Decision :Basket 2.G/RO/W/13
Page88A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
ex72.10 Noncladflat-rolled products ofironor
non-alloy steelChange tothissplitheading from any
other heading, except from headings
72.08 or72.09 (CAN)Decision :Basket 2.
Plating orcoating arenotorigin-conferring (US)
7210.70 -Painted, varnished orcoated with
plasticsChange tothissubheading from any
other subheading (AU)Decision :Basket 2.
7210.90 -Other Change tothissubheading from any
other subheading (CH)Decision :Basket 2.Covering arolled product witha
layer ofspecial property solder increases thedurability of
theproduct andconstitutes substantial transformation (CH)
72.11 Flat-rolled products ofironornon-
alloy steel, ofawidth oflessthan 600
mm, notclad, plated orcoated.(a)Chapter ruleapplies (IN)(PH) Decision :Basket 2.
(b)(1)Flat-rolled products ofthis
heading thathave been cold-
reduced bycold-rolling are
deemed tooriginate inthe
country where thecold-
reduction hasoccurred;
(2)Flatrolled products ofthis
heading obtained from flat-
rolled products ofheadings
72.08 through 72.10 by
reduction ofthemaximum
width tolessthan600mmare
notdeemed tooriginate inthe
country where thereduction of
width occurred. (US)
(c)Change tothisheading from any
other heading, except from
headings 72.08 or72.09 (CAN)
(d)Change tothisheading onlyfrom
headings 72.01 through 72.07 (EC)G/RO/W/13
Page89A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
7211.23 -
7211.29-Cold-rolled Change tothese subheadings from any
other subheading outside thatgroup
(JPN)Decision :Basket 2
Change tocold-rolled products from hot-rolled products is
deemed tobeasubstantial transformation (JPN)
7211.23 --Containing byweight lessthan
0.25% ofcarbon
7211.29 --Other
7211.90 -Other
72.12 Flat-rolled products ofironornon-
alloy steel, ofawidth oflessthan 600
mm, clad, plated orcoated.(a)Change tothisheading from any
other heading, except from
headings 72.08 through 72.11
(CAN)Decision :Basket 2.
(b)Change tothisheading from
headings 72.01 through 72.09 and
72.11 (EC)
(c)Chapter ruleapplies (IN)(PH)G/RO/W/13
Page90A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
(d)(1)Flat-rolled products ofthis
heading thathave been cold-
reduced by
cold-rolling aredeemed to
originate inthecountry where
thecold-reduction has
occurred;
(2) Flatrolled products ofthis
heading obtained from flat-
rolled products ofheadings
72.08 through 72.10 by
reduction ofthemaximum
width tolessthan600mmare
notdeemed tooriginate inthe
country where thereduction of
width occurred. (US)
7212.10 -Plated orcoated withtin Decision :Basket 2.
Plating orcoating arenotorigin-conferring (US)
7212.20 -Electrolytically plated orcoated
withzincDecision :Basket 2.
Plating orcoating arenotorigin-conferring (US)
7212.30 -Otherwise plated orcoated with
zincDecision :Basket 2.
Plating orcoating arenotorigin-conferring (US)
7212.40 -Painted, varnished orcoated with
plasticsChange tothissubheading from any
other subheading (AU)Decision: Basket 2.
Plating orcoating arenotorigin-conferring (US)
7212.50 -Otherwise plated orcoated Decision: Basket 2.
Plating orcoating arenotorigin-conferring (US)
7212.60 -Clad Change tothissubheading from any
other subheading (US)Decision: Basket 2.G/RO/W/13
Page91A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
ex
7212.50
and
ex
7212.60-Covered withlayer ofspecial-
property solder (CH)Change tothissubheading from any
other subheading (CH)Decision: Basket 2.
Covering arolled product withalayer ofspecial property
solder increases thedurability oftheproduct andconstitutes
substantial transformation (CH)
72.13 Bars androds, hot-rolled, in
irregularly wound coils, ofironor
non-alloy steel.(a)Chapter ruleapplies (CAN) Decision :Basket 2.
(b)Change tothisheading from any
other heading except from heading
72.14 or72.15 (US)
72.14 Other bars androds ofironornon-
alloy steel, notfurther worked than
forged, hot-rolled, hot-drawn orhot-
extruded, butincluding those twisted
after rolling.Change tothisheading from anyother
heading, [except from heading 72.13]Decision :Basket 2.
Theexclusion ofheading 72.13 wasopposed by(SG)
Change tothisheading from heading 72.13 cannotbe
considered assubstantial transformation because itresults
from asimple process (JPN)
72.15 Other bars androds ofironornon-
alloy steel.Change tothisheading from anyother
heading, except from heading 72.13 or
72.14 (JPN) (CAN)Decision :Basket 2.
Change tothisheading from heading 72.13 or72.14 cannot
beconsidered assubstantial transformation because it
results from asimple process (JPN)
7215.10
and
7215.50-Barsandrods, cold-formed or
cold-finished(a)Change tothese subheadings only
from headings 72.01 through 72.08
(EC)Decision :Basket 2.
(b)Change tothese subheadings from
anyother subheading (US)
7215.90 -Barsandrodsnotcold-formed or
cold-finished(a)Change tothissubheading only
from headings 72.01 through 72.07
(EC)Decision :Basket 2.G/RO/W/13
Page92A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
(b)Change tothissubheading from any
other heading except from heading
72.13 or72.14 (US)
72.16 Angles, shapes andsections ofiron
ornon-alloy steel.(a)Chapter ruleapplies (IN)(PH) Decision :Basket 2.
(b)Change tothisheading from any
other heading except from headings
72.08 through 72.15 (JPN) (CAN)
(c)Change tothisheading from any
other heading except from headings
72.08 through 72.12 (US)
7216.10 to
7216.50
ex
7216.99-Angles, shapes andsections, notcold-
formed orcold-finishedChange tothese subheadings andsplit
subheading from headings 72.01
through 72.07 (EC)Decision :Basket 2.
7216.61 to
7216.91
ex
7216.99-Angles, shapes andsections, cold-
formed
orcold- finishedChange tothese subheadings andsplit
subheading from headings 72.01
through 72.08 andfrom hot-rolled
products ofheadings 72.11 or72.16
(EC)Decision :Basket 2.
72.17 Wire ofironornon-alloy steel. (a)Change tothisheading from any
other heading, except from
headings 72.13 through 72.15; or
Change tothisheading from
headings 72.13 through 72.15,
whether ornotthere isalsoa
change from any other heading,
provided thatthe
cross-sectional areaoftherodis
reduced byatleast 50% (CAN)Decision :Basket 2.
Forthesakeofalignment ontheHStexts, thesecond rule
ought perhaps tousethefollowing terms :
-English: "bar orrod" (forheadings 72.13 to72.15)
-French: "filmachine" (forheading 72.13) and"barres"
(forheadings 72.14 and72.15) (Sec)G/RO/W/13
Page93A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
(b)Change tothisheading from
headings 72.01 through 72.08 and
72.13; andfrom hot-rolled products
ofheading 72.11 (EC)
(c)Chapter ruleapplies (IN)(NZ)
(KOR) (JPN) (CH)
(d)Change tothisheading from any
other heading, except from
headings 72.13 through 72.15; or
Change tothisheading from
headings 72.13 through 72.15
provided supplementary criteria are
alsosatisfied (US) (AU)
72.18 Stainless steel iningots orother
primary forms; semi-finished
products ofstainless steel.Chapter ruleapplies Decision :Basket 1.G/RO/W/13
Page94A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.19 Flat-rolled products ofstainless steel,
ofawidth of600mmormore.(a)Chapter rules applies (MOR) Decision :Basket 2.
(b)Change tothisheading from any
other heading except from heading
72.20 (CAN)
(c)(1)Flat-rolled products ofthis
heading thathave been cold-
reduced by
cold-rolling aredeemed to
originate inthecountry where
the
cold-reduction hasoccurred;
(2)Change toonesubheading from
another subheading of
these headings asaresult of
cladding isdeemed toconfer
origin.(US)
7219.11-
7219.24-Hot-rolled products (a)Change tothese subheadings only
from headings 72.01 through 72.18
(EC)Decision :Basket 2.
(b)Chapter ruleapplies (MEX)
7219.31-
7219.35-Cold-rolled products Change tothese subheadings onlyfrom
headings 72.01 through 72.18 andfrom
subheadings 7219.11 through 7219.24
(EC)Decision :Basket 2.
7219.31-
7219.90SeeHSdescription Change tothese subheadings from any
other subheading outside thisgroup
(MEX)Decision :Basket 2.
ex
7219.90-Plated orcoated products Supplementary criteria arenecessary
(EC)Decision :Basket 2.G/RO/W/13
Page95A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.20 Flat-rolled products ofstainless steel,
ofawidth oflessthan 600mm.(a)Change tothisheading from any
other heading except from heading
72.19 (CAN) (JPN)Decision :Basket 2.
(b)Supplementary criteria are
necessary (CH)Operations involving achange inthethickness orpickling
aresubstantial (CH)
(c)(1)Flat-rolled products ofthis
heading thathave been cold-
reduced by
cold-rolling aredeemed to
originate inthecountry where
thecold-reduction has
occurred;
(2)Change toonesubheading from
another subheading of
these headings asaresult of
cladding isdeemed toconfer
origin.(US)
7220.11
and
7220.12-Hot-rolled products (a)Change tothese subheadings only
from headings 72.01 through 72.18
(EC)Decision :Basket 2.
(b)Change tothese subheadings from
anyother subheading except from
subheadings 7219.11 through
7219.24 (MEX)
7220.20 -
7220.90SeeHSdescription Change tothese subheadings from any
other subheading outside ofthatgroup
except from subheadings 7219.31
through 7219.90 (MEX)Decision :Basket 2.G/RO/W/13
Page96A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
7220.20 -Cold-rolled products Change tothissubheading onlyfrom
headings 72.01 through 72.18 andfrom
hot-rolled products ofheadings 72.19
and72.20 (EC)Decision :Basket 2.
ex
7220.90-Plated orcoated products Supplementary criteria arenecessary
(EC)Decision :Basket 2.
72.21 Bars androds, hot-rolled, in
irregularly wound coils, ofstainless
steel.Change tothisheading from anyother
heading, [except from heading 72.22]Decision :Basket 2.
Theexclusion ofheading 72.22 wasopposed byEC
Change tothisheading from heading 72.22 cannot be
considered assubstantial transformation because itresults
from asimple process (JPN)
72.22 Other bars androds ofstainless
steel; angles, shapes andsections of
stainless steel.(a)Change tothisheading from any
other heading, except from heading
72.21 (JPN) (CAN)Decision :Basket 2.
(b)Change tothisheading from any
other heading except from headings
72.19 or72.20 (US)
7222.11
7222.19
ex
7222.40-Hot-rolled products Change tothese subheadings andsplit
subheading onlyfrom headings 72.01
through 72.18Decision :Basket 2.
7222.20
ex
7222.40-Cold-rolled products Change tothese subheadings andsplit
subheading onlyfrom headings 72.01
through 72.18 andfrom hot-rolled
products ofheadings 72.19 through
72.22Decision :Basket 2.
ex7222.30
ex7222.40-Plated orcoated products Supplementary criteria arenecessary
(EC)Decision :Basket 2.
Plating andcoating canbeconsidered assubstantial
transformations (EC)G/RO/W/13
Page97A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.23 Wire ofstainless steel. (a)Change tothisheading from any
other heading, except from
headings 72.21 through 72.22; or
Change tothisheading from
headings 72.21 through 72.22,
whether ornotthere isalsoa
change from anyother heading,
provided thatthecross-sectional
areaoftherodisreached byat
least 50% (CAN)Decision :Basket 2.
(b)Change tothisheading onlyfrom
headings 72.01 through 72.18 and
from hot-rolled products of
headings 72.19 through 72.21
(EC)
(c)Change tothisheading from any
other heading except from heading
72.21 or72.22 or
Change tothisheading from
heading 72.21 or72.22 provided
supplementary criteria arealso
satisfied (US)
(d)Chapter ruleapplies (JPN)
72.24 Other alloy steel iningots orother
primary forms; semi-finished
products ofother alloy steel.Chapter ruleapplies Decision :Basket 1.G/RO/W/13
Page98A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.25 Flat-rolled products ofother alloy
steel, ofawidth of600mmormore.(a)Change tothesubheadings ofthis
heading from anyother
subheading including another
subheading within thisheading
(JPN)Decision :Basket 2.
(b)Change tothisheading from any
other heading, except from
heading 72.26 (CAN)
(c)(1)Flat-rolled products ofthis
heading thathave been cold-
reduced bycold-rolling are
deemed tooriginate inthe
country where thecold-
reduction hasoccurred;
(2)Change toorwithin a
subheading ofthese headings
asaresult ofcladding is
deemed toconfer origin.(US)
ex72.25 Hot-rolled products Change tothissplitheading onlyfrom
headings 72.01 through 72.24 (EC)Decision :Basket 2
ex72.25 Cold-rolled products Change tothissplitheading onlyfrom
headings 72.01 through 72.24 andfrom
hot-rolled products ofheading 72.25
(EC)Decision :Basket 2.
ex72.25 Plated orcoated Supplementary criteria arenecessary
(EC)Decision :Basket 2.G/RO/W/13
Page99A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.26 Flat-rolled products ofother alloy
steel, ofawidth oflessthan 600mm.(a)Change tothesubheading ofthis
heading from anyother subheading
including another subheading
within thisheading, except from
heading 72.25 (JPN)Decision :Basket 2.
(b)(1)Flat-rolled products ofthis
heading thathave been cold-
reduced bycold-rolling are
deemed tooriginate inthe
country where thecold-
reduction hasoccurred;
(2)Change toorwithin a
subheading ofthese headings
asaresult ofcladding is
deemed toconfer origin.(US)
ex72.26 Hot-rolled products Change tothissplitheading onlyfrom
headings 72.01 through 72.24 (EC)Decision :Basket 2.
ex72.26 Cold-rolled products Change tothissplitheading onlyfrom
headings 72.01 through 72.24 andfrom
hot-rolled products ofheading 72.25
through 72.26 (EC)Decision :Basket 2.
ex72.26 Plated orcoated products Supplementary criteria arenecessary
(EC)Decision :Basket 2.
72.27 Bars androds, hot-rolled, in
irregularly wound coils, ofother
alloy steel.Change tothisheading from anyother
heading, [except from heading 72.28]Decision :Basket 2.
Change tothisheading from heading 72.28 cannot be
considered assubstantial transformation because itresults
from asimple process (JPN)
Theexclusion ofheading 72.28 wasopposed byECand
PHG/RO/W/13
Page100A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.28 Other bars androds ofother alloy
steel; angles, shapes andsections, of
other alloy steel; hollow drill bars
androds, ofalloy ornon-alloy steel.(a)Change tothisheading from any
other heading, except from heading
72.27 (JPN) (CAN)Decision :Basket 2.
(b)Change tothisheading from any
other heading except from heading
72.25 or72.26 (US)
(c)Chapter ruleapplies (IN)
ex72.28 Hot-rolled products Change tothissplitheading onlyfrom
headings 72.01 through 72.24 (EC)Decision :Basket 2.
ex72.28 Cold-rolled products Change tothissplitheading onlyfrom
headings 72.01 through 72.24 andfrom
hot-rolled products ofheadings 72.25
through 72.28 (EC)Decision :Basket 2.
ex72.28 Plated orcoated products Supplementary criteria arenecessary
(EC)Decision :Basket 2.
ex72.28 Hollow drillbarsandrods Change tothissplitheading onlyfrom
headings 72.07, 72.18 or72.24 (EC)Decision :Basket 2.G/RO/W/13
Page101A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
72.29 Wire ofother alloy steel. (a)Change tothisheading from any
other heading, except from
headings 72.27 through 72.28; or
Change toheading 72.29 from
headings 72.27 through 72.28,
whether ornotthere isalsoa
change from anyother heading,
provided thatthecross-sectional
areaoftherodisreduced byat
least 50% (CAN)Decision :Basket 2.
(b)Change tothisheading onlyfrom
headings 72.01 through 72.24 and
72.27 andfrom hot-rolled products
ofheadings 72.25 and72.26 (EC)
(c)Change tothisheading from any
other heading except from
headings 72.27 or72.28; or
Change tothisheading from
headings 72.27 or72.28 provided
supplementary criteria aresatisfied
(US)
(d)Chapter ruleapplies (JPN)
7229.90 -Other Supplementary criteria arenecessary
(CH)Decision :Basket 2.
Operations consisting ofcold-drawing andreconditioning
aresubstantial (CH)G/RO/W/13
Page102CHAPTER 73
Chapter Notes :
A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
Chapter 73 Articles ofironorsteel Change totheheadings ofthisChapter
from anyother heading, except the
following :Decision: Basket 1.
73.01 Sheet piling ofironorsteel, whether
ornotdrilled, punched ormade
from assembled elements; welded
angles, shapes andsections, ofiron
orsteel.Change tothisheading from anyother
heading, [except flat-rolled products of
Chapter 72]Decision :Basket 2
Thetextinbrackets wasproposed by(US)
73.02 Railway ortramway track
construction material ofironorsteel,
thefollowing :rails, check-rails and
rack rails, switch blades, crossing
frogs, point rods andother crossing
pieces, sleepers (cross-ties), fish-
plates, chairs, chair wedges, sole
plates (base plates), railclips,
bedplates, tiesandother material
specialized forjointing orfixing rails.Chapter ruleapplies Decision :Basket 1
73.03 Tubes, pipes andhollow profiles, of
castironG/RO/W/13
Page103A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
ex
73.03-With alayer ofasphalt /bitumen,
reinforcement materials andconcrete(a)Supplementary criteria are
necessary (CH) (NO)Decision :Basket 2
Technological process consisting ofcoating theinside and
outside ofpipes withpolyurethane; substantial
transformation oftheproperties ofthepipes (CH)
(b)Change tothissplitheading from
anyother headingProposal (b)wasopposed by(NO) and(CH)
ex73.03 -Other Chapter ruleapplies Decision :Basket 1
73.04 Tubes, pipes andhollow profiles,
seamless, ofiron(other than cast
iron) orsteel.a)Chapter ruleapplies Decision :Basket 2
(b)Change tothesubheadings ofthis
heading from anyother subheading
(CAN)
ex
7304.10-Line pipeofakindused foroilor
gas pipelines: With alayer of
asphalt/ bitumen, reinforcement
materials andconcrete(a)Supplementary criteria are
necessary (NO)Decision :Basket 2
(b)Chapter ruleapplies Proposal (b)wasopposed byNOG/RO/W/13
Page104A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
73.05 Other tubes andpipes (forexample,
welded, riveted orsimilarly closed),
having circular cross-sections, the
external diameter ofwhich exceeds
406.4 mm, ofironorsteel.Thisheading isentirely covered bytheproposals below
(SEC)
ex
7305.11 -
ex
7305.19-Line pipeofakindused foroilor
gaspipelines :With alayer of
asphalt /bitumen, reinforcement
materials andconcrete(a)Supplementary criteria are
necessary (NO)Decision :Basket 2
(b)Chapter ruleapplies Chapter rulewasopposed by(NO) onlyforthese split
subheadings
ex
7305.11 -
ex
7305.19--Other Chapter ruleapplies Decision :Basket 1
7305.20 -
7305.90SeeHSdescription Chapter ruleapplies Decision :Basket 1
73.06 Other tubes, pipes andhollow
profiles (forexample, open seam or
welded, riveted orsimilarly closed),
ofironorsteel.Thisheading isentirely covered bytheproposals below
(SEC)
ex
7306.10-Line pipeofakindused foroilor
gaspipelines :With alayer of
asphalt /bitumen, reinforcement
materials andconcrete(a)Supplementary criteria are
necessary (NO)Decision :Basket 2
(b)Chapter ruleapplies Chapter rulewasopposed byNOonlyforthissplit
subheading
ex
7306.10--Other Chapter ruleapplies Decision :Basket 1G/RO/W/13
Page105A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
7306.20 -
7306.90SeeHSdescription Chapter ruleapplies Decision :Basket 1
73.07 Tube orpipe fittings (forexample,
couplings, elbows, sleeves), ofironor
steel.Chapter ruleapplies Decision :Basket 1G/RO/W/13
Page106A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
73.08 Structures (excluding prefabricated
buildings ofheading No.94.06) and
parts ofstructures (forexample,
bridges andbridge-sections,
lock-gates, towers, lattice masts,
roofs, roofing frame-works, doors
andwindows andtheir frames and
thresholds fordoors, shutters,
balustrades, pillars andcolumns), of
ironorsteel; plates, rods, angles,
shapes, sections, tubes andthelike,
prepared foruseinstructures, of
ironorsteel.(a)Chapter ruleapplies
(b)Change tothisheading from any
other heading, except forchanges
resulting from thefollowing
processes, performed onangles,
shapes orsections ofheading 72.16
:
(1)Drilling, punching, notching,
cutting,
cambering, orsweeping,
whether
performed individually orin
combination;
(2)Adding attachments or
weldments for
composite construction;
(3)Adding attachments forhandling
purposes;
(4)Adding weldments, connectors
or
attachments toH-sections or
I-sections, provided thatthe
maximum dimension ofthe
weldments, connectors or
attachments isnotgreater than
thedimension between theinner
surfaces oftheflanges oftheH-
sections orI-sections;
(5)Painting, galvanizing, or
otherwise
coating; or
(6)Adding asimple baseplate
without stiffening elements,
individually orincombination
withdrilling, punching,Decision :Basket 2G/RO/W/13
Page107A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
(c)Change tothisheading from any
other heading, except forchanges
resulting from thefollowing
process, performed onangles,
shapes orsections ofheading
72.16 :
-Adding attachments for
handling purposes; (IN)
(PH)
(ex73.08)
(ex
73.08.90)Plates, rods, angles, shapes, sections,
tubes andthelike, prepared forusein
structures, ofironorsteel (EC) (US)
(NO)(a)Change tothissplitheading from
anyother heading, except from
subheading 7301.20 (EC) (NO)Decision :Basket 2
ECconsider thattheproducts mentioned incolumn Bare
covered byasplitheading, while USpropose touseonlya
splitsubheading
(b)Change tothissplitsubheading
from anyother heading, except
from headings 72.08 through
72.16, 73.01 or73.04 through
73.06 (US)
ex7308.90 -Other parts ofstructures (CH) (US) (a)Supplementary criteria are
necessary (CH)Decision :Basket 2
Operations leading tosubstantial transformation areeffected
without achange ofsubheading (CH)
(b)Change tothissplitsubheading
from anyother heading (US)
73.09 Reservoirs, tanks, vatsandsimilar
containers foranymaterial (other
than compressed orliquefied gas), of
ironorsteel, ofacapacity exceeding
300l,whether ornotlined or
heat-insulated, butnotfitted with
mechanical orthermal equipment.Chapter ruleapplies Decision :Basket 1G/RO/W/13
Page108A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
73.10 Tanks, casks, drums, cans, boxes
andsimilar containers, forany
material (other than compressed or
liquefied gas), ofironorsteel, ofa
capacity notexceeding 300l,whether
ornotlined orheat-insulated, but
notfitted with mechanical orthermal
equipment.Chapter ruleapplies Decision :Basket 1
73.11 Containers forcompressed or
liquefied gas,ofironorsteel.Chapter ruleapplies Decision :Basket 1
73.12 Stranded wire, ropes, cables, plaited
bands, slings andthelike, ofironor
steel, notelectrically insulated.Change tothisheading from anyother
heading, [except from headings 72.17,
72.23 or72.29]Decision :Basket 2
Thebracketed textwasproposed byCAN.
73.13 Barbed wire ofironorsteel; twisted
hoop orsingle flatwire, barbed or
not,andloosely twisted double wire,
ofakind used forfencing, ofironor
steel.Chapter ruleapplies Decision :Basket 1
73.14 Cloth (including endless bands), grill,
netting andfencing, ofironorsteel
wire; expanded metal ofironorsteel.
7314.12 -
7314.41SeeHSdescription Chapter ruleapplies Decision :Basket 1
7314.42 -
7214.49SeeHSdescription (a)Change tothese subheadings from
anyother subheading (AU)Decision :Basket 2
(b)Change tothese subheadings from
anyother headingG/RO/W/13
Page109A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
7314.50 -Expanded metal (a)Supplementary criteria are
necessary (ARG) (CL)Decision :Basket 2
Itisfeltthattheprocessing ofsheet orstripironorsteel to
form "expanded metal" canberegarded assubstantial
transformation given thatadifferent product (similar to
mesh) isobtained which issuitable foradifferent, more
limited usethanthesheet orstrip metal from which itis
obtained. (ARG/CL)
(b)Change tothissubheading from
anyother heading
73.15 Chain andparts thereof, ofironor
steel.(a)Supplementary criteria are
necessary (EC)Decision :Basket 2
Under certain conditions, themanufacture ofchain ofthis
heading byassembly ofparts classified inthissame
heading canbeconsidered asasubstantial transformation
(EC)
(b)Change tosubheadings ofthis
heading from anyother subheading
including another subheading
within thisheading (CAN)
7315.11 -
7315.12SeeHSdescription (a)Change tothese subheadings from
anyother heading orfrom
subheading 7315.19 (JPN)Decision :Basket 2
Change from parts ofsubheading 7315.19 isdeemed tobe
asubstantial transformation (JPN)
(b)Change tothese subheadings from
7315.19 or7315.90 (US)
7315.19 --Parts Change tothissubheading from any
other heading (JPN)Decision :Basket 2G/RO/W/13
Page110A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
7315.20 -
7315.89SeeHSdescription (a)Change tothese subheadings from
anyother heading; or
Change tothese subheadings from
subheading 7315.90 (JPN)Decision :Basket 2
Change from parts ofsubheading 7315.90 isdeemed tobe
asubstantial transformation (JPN)
(b)Change tothese subheadings from
7315.19 or7315.90 (US)
7315.90 -Other parts Change tothissubheading from any
other heading (JPN)Decision :Basket 2
73.16 Anchors, grapnels andparts thereof,
ofironorsteel.Change tothisheading from anyother
heading, [except from heading 73.12 or
73.15], [orchange togoods ofthis
heading from parts ofthesame
heading]Decision :Basket 2
Thefirstbracketed textwasproposed by(CAN) and(JPN)
andopposed by(PH) (NO) and(EC)
Thesecond bracketed textwasproposed byseveral
countries
73.17 Nails, tacks, drawing pins,
corrugated nails, staples (other than
those ofheading No.83.05) and
similar articles, ofironorsteel,
whether ornotwith heads ofother
material, butexcluding such articles
with heads ofcopper.Change tothisheading from anyother
heading,[or change togoods ofthis
heading from parts ofthesame
heading]Decision :Basket 2
Thebracketed textwasproposed byseveral countries
73.18 Screws, bolts, nuts, coach screws,
screw hooks, rivets, cotters, cotter-
pins, washers (including spring
washers) andsimilar articles, ofiron
orsteel.Change tothisheading from anyother
heading, [orchange togoods ofthis
heading from parts ofthesame
heading]Decision :Basket 2
Thebracketed textwasproposed byseveral countries
ex7318.19 --Cotter pins(CH) (a)Change tothissplitsubheading
from anyother subheading (CH)Decision :Basket 2
Operations leading tosubstantial transformation ofgoods of
other subheadings areeffected (CH)
(b)Change tothissplitsubheading
from anyother headingProposal (b)wasopposed onlybyCHG/RO/W/13
Page111A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
73.19 Sewing needles, knitting needles,
bodkins, crochet hooks, embroidery
stilettos andsimilar articles, foruse
inthehand, ofironorsteel; safety
pinsandother pinsofironorsteel,
notelsewhere specified orincluded.Chapter ruleapplies Decision :Basket 1
73.20 Springs andleaves forsprings, of
ironorsteel.Chapter ruleapplies
Decision :Basket 1
73.21 Stoves, ranges, grates, cookers
(including those with subsidiary
boilers forcentral heating),
barbecues, braziers, gas-rings, plate
warmers andsimilar non-electric
domestic appliances, andparts
thereof, ofironorsteel.Change tothisheading from anyother
heading, [orchange togoods ofthis
heading from parts ofthesame
heading]Decision :Basket 2
Under certain conditions, themanufacture ofproducts of
thisheading byassembly ofparts classified inthissame
heading canbeconsidered asasubstantial transformation
(EC)
Thebracketed textwasproposed byseveral countries
7321.11 -
7321.83SeeHSdescription (a)Change tothese subheadings from
anyother subheading, including
another subheading within this
group (CAN)Decision :Basket 2
(b)Change tothese subheadings from
subheading 7321.90 (US)
7321.90 -Parts Achange tothissubheading from any
other heading (CAN)Decision :Basket 2G/RO/W/13
Page112A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
73.22 Radiators forcentral heating, not
electrically heated, andparts thereof,
ofironorsteel; airheaters andhot
airdistributors (including
distributors which canalsodistribute
fresh ofconditioned air), not
electrically heated, incorporating a
motor-driven fanorblower, and
parts thereof, ofironorsteelChange tothisheading from anyother
heading, [orchange togoods ofthis
heading from parts ofthesame
heading]Decision :Basket 2
Under certain conditions, themanufacture ofproducts of
thisheading byassembly ofparts classified inthissame
heading canbeconsidered asasubstantial transformation
(EC)
Thebracketed textwasproposed byseveral countries.
73.23 Table, kitchen orother household
articles andparts thereof, ofironor
steel; ironorsteel wool; potscourers
andscouring orpolishing pads,
gloves andthelike, ofironorsteel.Change tothisheading from anyother
heading, [orchange togoods ofthis
heading from parts ofthesame
heading]Decision :Basket 2
Thebracketed textwasproposed byseveral countries
73.24 Sanitary ware andparts thereof, of
ironorsteel.(a)Change tothisheading from any
other heading, [orchange togoods
ofthisheading from parts ofthe
same heading]Decision :Basket 2
Thebracketed textwasproposed byseveral countries.G/RO/W/13
Page113A B C D
HSCode
numberDescription ofgoods Substantial transformation isconsidered
totakeplace inthecountry inwhich:Remarks orjustification oftheprevious columns
(b)Change tothesubheadings ofthis
heading from anyother
subheading, including another
subheading within thisheading
(CAN)
73.25 Other castarticles ofironorsteel. Change tothisheading from anyother
heading, [orchange togoods ofthis
heading from parts ofthesame
heading]Decision :Basket 2
Thebracketed textwasproposed byseveral countries.
73.26 Other articles ofironorsteel. Change tothisheading from anyother
heading, [orchange togoods ofthis
heading from parts ofthesame
heading]Decision :Basket 2
Thebracketed textwasproposed byseveral countries.
7326.90 -Other Change tothissubheading from
subheading 7326.19 (US)Decision :Basket 2Chapter 74: Copper and Articles Thereof
Chapter 75:
Nickel and Articles Thereof
Chapter 76:
Aluminum and Articles Thereof
Chapter 78:
Lead and Articles Thereof
Chapter 79:
Zinc and Articles Thereof
Chapter 80:
Tin and Articles Thereof
Chapter 81:
Other Base Metals; Cermets; Articles Thereof
Chapter 82:
Tools, Implements, Cutlery, Spoons and Forks, of Base Metal
Chapter 83:
Miscellaneous Articles of Base MetalG/RO/W/13
Page 114SECTION XVI
MACHINERY AND MECHANICAL APPLIANCES: ELECTRICAL EQUIPMENT; PARTS
THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND
RECORDERS AND REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH ARTICLES
(Chapter 84-85)
Chapter 84:
Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof
Chapter 85:
Electrical Machinery and Equipment and Parts Thereof; Sound Recorders and Reproducers,
Television image and Sound Recorders and Reproducers and Parts and Accessories of Such
ArticlesG/RO/W/13
Page 115SECTION XVII
VEHICLES, AIRCRAFT, VESSELS AND ASSOCIATED TRANSPORT EQUIPMENT (Chapter
86-89)
Chapter 86:
Railway or Tramway Locomotives, Rolling-Stock and Parts Thereof; Railway or Tramway Track
Fixtures and Fittings and Parts Thereof; Mechanical (including electro-mechanical) Traffic
Signalling Equipment of All Kinds
Chapter 87:
Vehicles Other Than Railway or Tramway Rolling-Stock, and Parts and Accessories Thereof
Chapter 88:
Aircraft, Spacecraft and Parts Thereof
Chapter 89:
Ships, Boats and Floating StructuresG/RO/W/13
Page 116SECTION XVIII
OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CHECKING,
PRECISION, MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS; CLOCKS AND
WATCHES; MUSICAL INSTRUMENTS; PARTS AND ACCESSORIES THEREOF (Chapter 90-
92)
Chapter 90:
Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical or Surgical
Instruments and Apparatus; Parts and Accessories Thereof
Chapter 91:
Clocks and Watches and Parts Thereof
Chapter 92:
Musical Instruments; Parts and Accessories of such ArticlesG/RO/W/13
Page 117SECTION XIX
ARMS AND AMMUNITION; PARTS AND ACCESSORIES THEREOF (Chapter 93)
Chapter 93:
Arm and Ammunition; Parts and Accessories thereofG/RO/W/13
Page 118SECTION XX
MISCELLANEOUS MANUFACTURED ARTICLES (Chapter 94-96)
Chapter 94:
Furniture; Bedding, Mattresses, Mattress Supports, Cushions and Similar Stuffed Furnishings;
Lamps and Lighting fittings, Not Elsewhere Specified or Included; Illuminated Name-Plates and
the Like; Prefabricated Buildings
Chapter 95:
Toys, Games and Sports Requisites; Parts and Accessories Thereof
Chapter 96:
Miscellaneous Manufactured ArticlesG/RO/W/13
Page 119SECTION XXI
WORKS OF ART, COLLECTORS' PIECES AND ANTIQUES (Chapter 97)
Chapter 97:
Works of Art, Collectors' Pieces and AntiquesG/RO/W/13
Page 120APPENDIX 3 - Minimal Operations or Processes
Definitions of Minimal Operations or Processes1
Definitions
1. Minimal operations or processes that do not by themselves
or in combination with each other confer origin to a good
are defined as follows:
(a)
operations or processes to ensure the preservation of goods
in good condition for the purposes of transport and/or
storage;
(b)
operations or processes to facilitate shipment or
transportation;
(c)
operations or processes that concern the packaging or
presentation of goods for sale.
2. The minimal operations or processes defined above shall
not be taken into account in determining whether a good
has been wholly obtained in one country.*Notes2
In respect of definition 1, the essential criterion that must be
met is that an operation or process is for the purposes
prescribed in the definition; in these cases the purpose
determines that it is a minimal operation or process.
Examples of minimal operations or processes include, among
others:
[- ventilation
- spreading out
- drying
- chilling
- removal of damaged parts
- application of grease, anti-rust paint or protective coating
- removal of dust
- cleaning
- washing
- sifting or screening
- sorting
- classifying or grading
- testing or calibration
- breaking bulk
- packing, unpacking or repacking
- grouping of packages
- affixing of marks, labels or distinguishing signs on goods
or their packages
- dilution with water or any other aqueous solution
- ionizing
- salting
- husking
- shelling (unshelling)
- stoning
- crushing]
A minimal operation or process or a combination of them shall
not preclude conferring origin to a good if a substantial
transformation occurred as a result of other operations or
processes.
*Definition 2 will be further examined in Phase II and/or Phase III of the Harmonization Work Programme.
1See paragraphs 14-15, G/RO/2, page 4.
2See paragraph 36, G/RO/5, page 9.G/RO/W/13
Page 121