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ANNEX II
RULES OF ORIGIN

For determining the origin of products eligible for preferential concessions under the GSTP
in the light of paragraphs (a) and (b) of Article 3 and Article 15 of the Agreement on GSTP
the following Rules shall be applied :

RULE 1 : Originating products – Products covered by preferential trading arrangements

within the framework of the GSTP imported into the territory of a participant from another
participant which are consigned directly within the meaning of Rule 5 hereof, shall be
eligible for preferential concessions if they conform to the origin requirement under any one
of the following conditions :

(a) Products wholly produced or obtained in the exporting participant as defined in

Rule 2; or

(b) Products not wholly produced or obtained in the exporting participant, provided
that the said products are eligible under Rule 3 or Rule 4.

RULE 2 : Wholly produced or obtained – Within the meaning of Rule 1(a) the following
shall be considered as wholly produced or obtained in the exporting participant :

(a) raw or mineral products extracted from its soil, its water or its seabeds; 1

(b) agricultural products harvested there; 2

(c) animals born and raised there ;

(d) products obtained from animals referred to in paragraph (c ) above ;

(e) products obtained by hunting or fishing conducted there ;

(f) products of sea fishing and other marine products taken from the high seas by
its vessels; 3/ 4

1
Include mineral fuels, lubricants and related materials as well as mineral or metal ores.
2
Include forestry products.
3
“Vessels” – shall refer to fishing vessels engaged in commercial fishing, registered in a participant’s
country and operated by a citizen or citizens or governments of participants or partnership,
corporation or association, duly registered in such participant’s country, at least 60 per cent of equity
of which is owned by a citizen or citizens and/or government of such participants or 75 per cent by
citizens and/or governments of the participants. However the products taken from vessels engaged in
commercial fishing under bilateral agreements which provide for chartering/leasing of such vessels
and/or sharing of catch between participants will also be eligible for preferential concessions.
4
In respect of vessels or factory ships operated by government agencies, the requirement of flying the
flag of a participant does not apply.
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(g) products processed and/or made on board its factory ships4/5 exclusively from
products referred to in paragraph (f) above ;

(h) used articles collected there, fit only for the recovery of raw materials ;

(i) waste and scrap resulting from manufacturing operations conducted there ;

(j) goods produced there exclusively from the products referred to in paragraph
(a) to (i) above.

RULE 3 : Not wholly produced or obtained

(a) Within the meaning of Rule 1 (b), products worked on or processed as a result of
which the total value of the materials, parts or produce originating from non-
participants or of undetermined origin used does not exceed 50 per cent of the
f.o.b. value of the products produced or obtained and the final process of
manufacture is performed within the territory of the exporting participant shall
be eligible for preferential concessions subject to the provisions of Rule 3 (c)
and Rule 4.

(b) Sectoral agreements 6

(c) The value of the non-originating materials, parts or produce shall be :

(i) The c.i.f. value at the time of importation of the materials, parts or
produce where this can be proven ; or

(ii) The earliest ascertainable price paid for the materials, parts or produce
of undetermined origin in the territory of the participant where the
working or processing takes place.

RULE 4 : Cumulative rules of origin – Products which comply with origin requirements
provided for in Rule 1 and which are used by a participant as input for a finished product
eligible for preferential treatment by another participant shall be considered as a product
originating in the territory of the participant where working or processing of the finished
product has taken place provided that the aggregate content originating in the territory of the
participant is not less than 60 per cent of its f.o.b. value 7.

5
For the purpose of this Agreement, the term “factory ship” means any vessel, as defined, used for
processing and/or making on board products exclusively from those products referred to in paragraph
(f) above.
6
In respect of products traded within the framework of sectoral agreements negotiated under the
GSTP, provision may need to be made for special criteria to apply. Consideration may be given to
these criteria as and when the sectoral agreements are negotiated.
7
“Partial” cumulation as implied by Rule 4 above means that only products which have acquired
originating status in the territory of one participant may be taken into account when used as inputs for
a finished product eligible for preferential treatment in the territory of another participant.
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RULE 5 : Direct consignment – The following shall be considered as directly consigned

from the exporting participant to the importing participant:

(a) if the products are transported without passing through the territory of any non-
participant;

(b) the products whose transport involves transit through one or more intermediate
non-participants with or without transhipment or temporary storage in such
countries, provided that :

(i) the transit entry is justified for geographical reason or by

considerations related exclusively to transport requirements ;

(ii) the products have not entered into trade or consumption there ; and

(iii) the products have not undergone any operation there other than
unloading and reloading or any operation required to keep them in
good condition.

RULE 6 : Treatment of packing – When determining the origin of products, packing

should be considered as forming a whole with the product it contains. However, packing
may be treated separately if the national legislation so requires.

RULE 7 : Certificate of origin – Products eligible for preferential concessions shall be

supported by a certificate of Origin8 issued by an authority designated by the government of
the exporting participant and notified to the other participants in accordance with the
Certification Procedures to be developed and approved by the participants.

RULE 8

(a) In conformity with paragraphs (a) and (b) of Article 3 and Article 15 of the
Agreement on the GSTP and national legislations, any participant may prohibit
importation of products containing any inputs originating from States with
which it does not have economic and commercial relations.

(b) Participants will do their best to co-operate in order to specify origin of inputs
in the Certificate of Origin.

RULE 9: Review – These Rules may be reviewed as and when necessary upon request of
one third of the participants and may be open to such modifications as may be agreed upon.

RULE 10 : Special criteria percentage – Products originating in participating least

developed countries can be allowed a favourable 10 percentage points applied to the
percentages established in Rules 3 and 4. Thus, for Rule 3, the percentage would not exceed
60 percent, and for Rule 4, the percentage would not be less than 50 per cent.

8
A standard Certificate of Origin to be used by all participants is annexed.
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1. Goods consigned from (Exporter’s business name, address, Reference no°

country)
GLOBAL SYSTEM OF TRADE PREFERENCES
Certificate of Origin
(Combined declaration and certificate)

[Link] consigned to (Consignee’s name, address, country)

Issued in ________________________________
(country)

see notes overleaf

[Link] of transport and route (as far as known) 4. For official use

5. Tariff 6. Marks and 7. Number and kind of packages; description of 8. Origin 9. Gross [Link]
item numbers of goods criterion (see weight or and date of
number packages notes other invoices
overleaf) quantity

11. Declaration by the exporter 12. Certificate

The undersigned hereby declares that the above details and statements are correct; It is hereby certified, on the basis of control
that all goods were produced in carried out, that the declaration by the
exporter is correct.
_____________________________________________________
(country)
and that they comply with the origin requirements specified for those goods in the
Global System of Trade Preferences for goods exported to

_____________________________________________________
(importing country)

Place and date, signature and stamp of

certifying authority
Place and date, signature of authorised signatory
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I. General Conditions
To qualify for preference, products must :

(a) fall within a description of products eligible for preference in the schedule of
concessions of the GSTP country of destination ;

(b) comply with the GSTP rules of Origin. Each article in a consignment must
qualify separately in its own right ; and

(c) comply with the consignment conditions specified by the GSTP Rules of
Origin. In general, products must be consigned directly within the meaning of
Rule 5 hereof from the country of exportation to the country of destination.

II. Entries to be made in box 8

Preference products must be wholly produced or obtained in the exporting participant in

accordance with rule 2 of the GSTP Rules of Origin, or where not wholly produced or
obtained in the exporting participants must be eligible under rule 3 or rule 4.

(a) Products wholly produced or obtained : enter the letter "A" in box 8.

(b) Products not wholly produced or obtained : the entry in box 8 should be as
follows :

1. Enter letter "B" in box 8, for products which meet the origin criteria
according to rule 3. Entry of letter "B" would be followed by the sum of the
value of materials, parts or produce originating from non-participants, or
undetermined origin used, expressed as a percentage of the f.o.b. value of
the exported products; (example "B" 50 per cent).

2. Enter letter "C" in box 8 for products which meet the origin criteria
according to rule 4. Entry of letter "C" would be followed by the sum of the
aggregate content originating in the territory of the exporting participant
expressed as a percentage of the f.o.b. value of the exported product;
(example "C" 60 per cent).

3. Enter letter "D" in box 8 for products which meet the special origin criteria
according to rule 10.