General rules
Table of Contents
Specifically, goods will be considered originating (ASEAN or Hong Kong, China) if:
Case 1: Having pure origin or being wholly produced in the exporting Party’s territory; or
Case 2: Made entirely in the exporting Party’s territory only from materials originating from ASEAN or Hong Kong, China; or
Case 3: Not having pure origin or not being produced entirely in the territory of the exporting Party but meeting the requirements of rules of origin specified in the Agreement.
In case 3, a goods with a non-pure origin in the Agreement is determined based on the following criteria:
Regional value content (RVC) criterion requires that at least 40% of the value of the final product must be originating in AHKFTA Member States.
– Commodity code conversion criterion (CTC) requires the product to be in a different code from the number of imported materials (according to specific rules of origin).
The formula for calculating the regional value content (RVC) is as follows:
Direct calculation (also known as Build – Up method):
RVC = (VOM / FOB) x 100%
Inside: VOM is the value of originating materials (including the value of the cost of originating materials, direct labor costs, direct business costs, other costs and profit).
Indirect calculation (also known as Build – Down method):
RVC = (FOB – VNM) / FOB x 100%
Inside VNM is the value of non-originating materials, namely: (i) CIF price calculated at the time of import of raw materials, parts or input goods; or (ii) The earliest purchase price of raw materials, parts or inputs has not been determined.
Item specific rules
In addition to the general principles to determine the origin of goods as mentioned above, AHKFTA also stipulates specific rules for some products in Annex 3.2 Chapter 3 of the AHKFTA Agreement, including vegetables and fruits.
Specific rules for vegetables and fruits in AHKFTA
|
HS code |
Description of goods |
Origin criteria |
|
0701.10 |
– To make seeds |
WO |
|
|
– Others |
WO |
|
0702.00 |
Tomatoes, fresh or chilled. |
WO |
|
0703.10 |
– Onions, onions, chives |
WO |
|
0703.20 |
– Garlic |
WO |
|
0703.90 |
– Leeks and other onions, garlic: |
WO |
|
0704.10 |
– Cauliflower and broccoli (headed brocoli) |
WO |
|
0704.20 |
– Brussels sprouts |
WO |
|
0704.90 |
– Others |
WO |
|
0705.11 |
– Lettuce, lettuce: head lecttuce |
WO |
|
HS code |
Description of goods |
Origin criteria |
|
0705.19 |
– Lettuce, lettuce: other |
WO |
|
0705.21 |
– Chicory: Root chicory (Cichorium intybus var. Foliosum) |
WO |
|
0705.29 |
– Chicory: other |
WO |
|
0706.10 |
– Carrots and radishes |
WO |
|
0706.90 |
– Others |
WO |
|
0707.00 |
Cucumber and cucumber curry, fresh or chilled |
WO |
|
0708.10 |
– Peas (Pisum sativum) |
WO |
|
0708.20 |
– Beans (Vigna spp., Phaseolus spp.) |
WO |
|
0708.90 |
– Other legumes |
WO |
|
0709.20 |
– Asparagus |
WO |
|
0709.30 |
– Eggplant |
WO |
|
0709.40 |
– Celery excluding celeriac |
WO |
|
0709.51 |
– Mushrooms and truffles (Truffle): Mushrooms of the genus Agarius |
WO |
|
0709.59 |
– Mushrooms and truffles (Truffle): Other |
WO |
|
0709.60 |
– Fruits of the genus Capsicum or of the genus Pimenta |
WO |
|
0709.70 |
– Spinach, New Zealand spinach, pear spinach (garden spinach) |
WO |
|
0709.91 |
– Other: United States |
WO |
|
0709.92 |
– Other: Olives |
WO |
|
0709.93 |
– Others: Pumpkins, zucchini and gourds (Cucurbita spp.) |
WO |
|
0709.99 |
– Other: other |
WO |
|
0710.10 |
– Potato |
WO |
|
0710.29 |
– Vegetables and legumes, whether or not peeled: other |
WO |
|
0710.30 |
– Spinach, New Zealand spinach, pear spinach (garden spinach) |
WO |
|
0710.40 |
– Sweet corn |
WO |
|
HS code |
Description of goods |
Origin criteria |
|
0710.80 |
– Other vegetables |
WO |
|
0710.90 |
– Mixed vegetables |
WO |
|
0714.10 |
– Cassava (cassava) |
WO |
|
0801.21 |
– Brazil nuts: Not peeled |
WO |
|
0801.31 |
– Cashew nuts: not yet peeled |
WO |
|
0802.11 |
– Almonds: not peeled |
WO |
|
0802.21 |
Hazelnuts or hazelnuts (Corylus spp.): Not peeled |
WO |
|
0802.31 |
– Walnuts: not yet peeled |
WO |
|
0804.10 |
– Palm fruit |
WO |
|
0804.20 |
Figs, figs |
WO |
|
0804.30 |
– Pineapple |
WO |
|
0804.40 |
– Avocado |
WO |
|
0804.50 |
– Guava, mango, mangosteen |
WO |
|
0805.10 |
– Mangoes |
WO |
|
0805.20 |
– Tangerines of all kinds (including kumquats); clementines and similar citrus hybrids |
WO |
|
0805.40 |
Grapefruit, including grapefruit |
WO |
|
0805.50 |
– Yellow lemon (Citrus limon, Citrus limonum) and green lemon (Citrus aurantifolia, Citrus latifolia) |
WO |
|
0805.90 |
– Others |
WO |
|
0806.10 |
– Fresh |
WO |
|
0806.20 |
– Dried |
WO |
|
0807.11 |
– Melon fruits (including watermelon): watermelon |
WO |
|
0807.19 |
– Melon fruits (including watermelon): other |
WO |
|
0807.20 |
– Papaya |
WO |
|
0808.10 |
– Apples (apples) |
WO |
|
0808.30 |
– Pear |
WO |
|
HS code |
Description of goods |
Origin criteria |
|
0808.40 |
– Quince fruit |
WO |
|
0809.10 |
– Apricots |
WO |
|
0809.21 |
Cherries: Sour cherries (Prunus cerasus) |
WO |
|
0809.29 |
– Cherries: other |
WO |
|
0809.30 |
– Peaches, including nectarine |
WO |
|
0809.40 |
– Plum and prickly plum |
WO |
|
0810.10 |
– Strawberry |
WO |
|
0810.20 |
– Raspberries, mulberries and red mulberries (loganberries) |
WO |
|
0810.30 |
– Black, white or red gooseberries and gooseberries |
WO |
|
0810.40 |
– Cranberries, blueberries and other fruits of the Vaccinium genus |
WO |
|
0810.50 |
– Kiwi |
WO |
|
0810.60 |
– Durian |
WO |
|
0810.70 |
– Yellow persimmons |
WO |
|
0810.90 |
– Others |
WO |
Other problems
The Rule of Minimum Ratio (De Minimis)
Goods of vegetables and fruits that do not meet the HS code conversion origin criteria are still considered originating if the value of all non-originating materials does not exceed 10% of the FOB value of the good. .
Addition of origin
AHKFTA allows origin aggregation, that is, an originating material of a member country used in the production of a good in another Member State is considered to be originating material of the Member State where the public takes place the processing and processing of those goods.
