G/RO/41
Page 447CHAPTER 35
Chapter Notes
1.  Chemical Reaction   Basket 1
A “chemical reaction” is a process (including a biochemical process) which results in a molecule with a new structure by breaki ng intramolecular
bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.
The following are not considered to be chemical  reactions for the purposes of this definition:
1) dissolving in water or other solvents;
2) the elimination of solvents including solvent water;  or
3) the addition or elimination of water of crystallization
A chemical reaction as defined above is to be considered origin-conferring.
2.  Mixtures and Blends   Basket 1,    Submitted to CRO for decision for Bracketed text (Doc.42.626, Issue No.5)
For the purposes of subheading 3502.20 and headings 35.06 and 35.07, the deliberate and proportionally controlled mixing or ble nding (including
dispersing) of materials [other than the addition of diluents on ly] to conform to predetermined specifications which results in  the production of a
good having physical or chemical characteristics which are relevant to the purposes or uses of the good and are different from the input materials is
to be considered to be origin conferring.
3. Purification   Basket 1,    Submitted to CRO fo r decision for bracketed text (Doc.OC0014, Issue No.25)
Purification is considered to be origin conferring prov ided that one of the following criteria is satisfied :
a) purification of a good resulting in the elimination of 50 percent of the content of existing impurities; orb)  the reduction or elimination of impurities resulting in a good suitable for one or more of the following applications:
(i) pharmaceutical, medical, cosmetic, veterinary or food grade substances;
(ii) chemical products and reagents for analytical, diagnostic or laboratory uses;
(iii) elements and components for use in in micro-electronics;G/RO/41
Page 448
(iv) specialized optical uses;
[(v) [non toxic uses for health and safety ];
(vi) biotechnical use (e.g., in cell culturing, in genetic technology, or as a catalyst);
(vii) carriers used in a separation process;  or
(viii) nuclear grade uses.
4.  Reduction in particle size   Basket 1
The deliberate and controlled reduction in particle size of a good, other than by merely crushing, resulting in a good having a  defined particle size,
defined particle size distribution or defined surface area, which are relevant to the purposes of the resulting good and have d ifferent physical or
chemical characteristics from the input materials is considered to be origin conferring.
5.  Standard Materials   Basket 1
Standard materials (including standard solutions) are preparations suitable for analytical, calibrating or referencing uses hav ing precise degrees of
purity or proportions which are certified by the manufacturer.  The production of standard materials is to be considered as ori gin conferring.
6.  Isomer Separation    Basket 1
The isolation or separation of isomers from a mixture of isomers is to be considered as origin-conferring.
7.  Non-Origin Conferring Processes    Submitted to CRO for decision (Doc.OC0032, Issue No.24)
[- For the purposes of Chapters 30-38 the addition, whether or not in  combination, of the additives enumerated in HS Chapter Notes  1(f) and
1(g) to Chapter 29 for the purposes indicated ther ein is not origin conferring. (CAN) (PHI) (US)]
8.  Packing for retail sale    Basket 1
For the purposes of heading 35.06, the change of classification resulting from the mere putting up for retail sale of products of this Chapter is not to
be considered origin-conferring.
[Criteria to apply Appendix 2, Rule 2(g)]G/RO/41
Page 449The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[Weight (CAN)]
[Weight or volume (EC) (US)]
[Total value of parts and related processing activity (CH)]
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter  35 Albuminoidal substances;
modified starches;  glues;enzymes
35.01 Casein, caseinates and other
casein derivatives; casein
glues.As indicated at the subheading level
3501.10 - Casein CTSH/CTH Basket 2 (Terminology Only)  - to be
finalised
3501.90 - Other As indicated at the split subheading level Decisions as specified for the split
subheading
ex 3501.90(a) Casein glues CTSHS Basket 1 (Endorsed by CRO)
ex 3501.90(b) Other CTSH Basket 1 (Endorsed by CRO)
35.02 Albumins (including
concentrates of two or more
whey proteins, containing by
weight more than 80 % whey
proteins, calculated on the dry
matter), albuminates andother albumin derivatives.As indicated at the subheading level
- Egg albumin :
3502.11 -- Dried CTSH Basket 1 (Endorsed by CRO)
3502.19 -- Other [CTSH]  (JPN) (EGY) (CH) Submitted to CRO for decision
(Doc.42.626)
Issue n° 15
[CTH]  (COL) (NZ)(PHI)G/RO/41
Page 450
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
[CTH, except from heading 04.07 or
04.08] (EC) (US)
[CTSH except from subheading3502.11] (CAN) (MEX)
3502.20 - Milk albumin, including
concentrates of two or more
whey proteinsCTSH/CTH Basket 2 (Terminology Only)  - to be
finalised
3502.90 - Other CTSH/CTH Basket 2 (Terminology Only)  - to be
finalised
35.03 Gelatin (including gelatin in
rectangular (including square)sheets, whether or not surface-
worked or coloured) and
gelatin derivatives; isinglass;
other glues of animal origin,
excluding casein glues ofheading No. 35.01.[CTH] Basket 1 (Endorsed by CRO)
35.04 Peptones and their
derivatives; other protein
substances and their
derivatives, not elsewhere
specified or included; hide
powder, whether or not
chromed.[CTH] (JPN) (COL) (CAN) (MEX)
(EGY) (NZ) (CH) (EC) (US)(PHI)Basket 1 (Endorsed by CRO)
35.05 Dextrins and other modified
starches (for example,
pregelatinised or esterifiedstarches); glues based on
starches, or on dextrins or
other modified starches.As indicated at the subheading level
3505.10 - Dextrins and other
modified starchesCTH/CTSH Basket 2 (Terminology Only)  - to be
finalisedG/RO/41
Page 451HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3505.20 - Glues CTSH Basket 1 (Endorsed by CRO)
35.06 Prepared glues and other
prepared adhesives, not
elsewhere specified or
included; products suitable foruse as glues or adhesives, put
up for retail sale as glues or
adhesives, not exceeding a net
weight of 1 kg.As indicated at the subheading level
3506.10 - Products suitable for use
as glues or adhesives, put up for
retail sale as glues or adhesives,
not exceeding a net weight of 1
kgCTSH Basket 1 (Endorsed by CRO)
Other :
3506.91 -- Adhesives based on
rubber or plastics (including
artificial resins)CTSH Basket 1 (Endorsed by CRO)
3506.99 -- Other CTSH Basket 1 (Endorsed by CRO)
35.07 Enzymes; prepared enzymes
not elsewhere specified or
included.As indicated at the split heading and
subheading levelSubmitted to CRO for decision
[ex 35.07(a) Isolated enzymes CTHS  (US)(PHI)
ex 35.07(b) Enzyme concentrates CTHS  (US)(PHI)
ex 35.07(c) Enzyme CTHS (US)(PHI)]
3507.10 - Rennet and concentrates
thereof[CTSH]  (JPN) (MEX) (CH)
[CTH] (COL) (CAN) (NZ) (EGY)(EC)
3507.90 - Other [CTSH]  (JPN) (MEX) (CH)
[CTH] (COL) (CAN) (NZ) (EGY)(EC)G/RO/41
Page 452
CHAPTER 36
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 36 Explosives;  pyrotechnic
products;  matches;
pyrophoric alloys;  certain
combustible preparations
36.01 Propellent powders. CTH Basket 1 (Endorsed by CRO)
36.02 Prepared explosives, other
than propellent powders.CTH Basket 1 (Endorsed by CRO)
36.03 Safety fuses; detonating fuses;
percussion or detonating caps;igniters; electric detonators.CTH Basket 1 (Endorsed by CRO)
36.04 Fireworks, signalling flares,
rain rockets, fog signals and
other pyrotechnic articles.CTH Basket 1 (Endorsed by CRO)
36.05 Matches, other than
pyrotechnic articles of heading
No. 36.04.CTH Basket 1 (Endorsed by CRO)
36.06 Ferro-cerium and other
pyrophoric alloys in all forms;
articles of combustible
materials as specified in Note 2
to this Chapter.CTH except when this change results
from the liquefaction or putting up for
retail sale of products of other headingsBasket 1 (Endorsed by CRO)
3606.10 - Liquid or liquefied-gas
fuels in containers of a kind
used for filling or refillingcigarette or similar lighters and
of a capacity not exceeding 300
cm
3As indicated at the heading level Decisions as specified for the heading
3606.90 - OtherG/RO/41
Page 453CHAPTER 37
Chapter Notes
1.  Mixtures and Blends    Submitted to CRO for decision (Doc.42.626, Issue No.5)
[For the purposes of heading 37.07,  the deliberate and proportionally controlled mixing or blending (including dispersing) of materials [other than
the addition of diluents only] to conform to predetermined specifications which results in the production of a good having phys ical or chemical
characteristics which are relevant to the purposes or uses of the good and are different from the input materials is to be cons idered to be origin
conferring.]
2.  Non-Origin Conferring Processes    Submitted to CRO for decision (Doc.OC0032, Issue No.24)
[- For the purposes of Chapters 30-38 the addition, whether or not in combination, of the additives enumerated in HS Chapter Notes  1(f) and
1(g) to Chapter 29 for the purposes indicated ther ein is not origin conferring. (CAN) (PHI) (US)]
[Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[Weight (CAN)]
[Weight or volume, as appropriate (US)]
[Weight, volume or value, as appropriate (EC)]
[Total value of parts and related processing activity (CH)]G/RO/41
Page 454
CHAPTER 37
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 37 Photographic or
cinematographic goods
37.01 Photographic plates and film
in the flat, sensitised,
unexposed, of any material
other than paper, paperboard
or Photographic plates andfilm in the flat, sensitised,
unexposed, of any material
other than paper, paperboard
or textiles; instant print film in
the flat, sensitised, unexposed,whether or not in packs.As indicated at the subheading level
3701.10 - For X-ray CTH except from heading 37.02 Basket 1 (Endorsed by CRO)
3701.20 - Instant print film [CTH, except from heading 37.02 or
37.03]
[CTH] (EC)Submitted to CRO for decision
(Doc.42.626)
Issue n° 16
3701.30 - Other plates and film, with any
side exceeding 255 mmCTH except from heading 37.02 Basket 1 (Endorsed by CRO)
-- Other
3701.91 -- For colour photography
(polychrome)CTH except from heading 37.02 Basket 1 (Endorsed by CRO)
3701.99 -- Other CTH except from heading 37.02 Basket 1 (Endorsed by CRO)G/RO/41
Page 455HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
37.02 Photographic film in rolls,
sensitised, unexposed, of any
material other than paper,paperboard or textiles; instant
print film in rolls, sensitised,
unexposed.As indicated at the subheading level
3702.10 - For X-ray CTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.20 - Instant print film [CTH, except from heading 37.01 or
37.03]
[CTH, except from heading 37.01] (EC)Submitted to CRO for decision
(Doc.42.626)
Issue n° 16
- Other film, withoutperforations, of a width not
exceeding 105 mm :
3702.31 -- For colour photography
(polychrome)CTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.32 -- Other, with silver halide
emulsionCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.39 -- Other CTH except from heading 37.01 Basket 1 (Endorsed by CRO)
- Other film, without
perforations, of a width
exceeding  105 mm :
3702.41 -- Of a width exceeding
610 mm and of a length
exceeding  200 m, for colour
photography (polychrome)CTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.42 -- Of a width exceeding
610 mm and of a lengthexceeding 200 m, other than for
colour photographyCTH except from heading 37.01 Basket 1 (Endorsed by CRO)G/RO/41
Page 456
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3702.43 -- Of a width exceeding
610 mm and of a length not
exceeding 200 mCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.44 -- Of a width exceeding
105 mm but not exceeding 610mmCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
- Other film, for colour
photography (polychrome) :
3702.51 -- Of a width not
exceeding 16 mm and of a
length not exceeding 14 mCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.52 -- Of a width not
exceeding 16 mm and of alength exceeding  14 mCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.53 -- Of a width exceeding 16
mm but not exceeding 35 mm
and of a length not exceeding 30
m, for slidesCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.54 -- Of a width exceeding 16
mm but not exceeding 35 mm
and of a length not exceeding 30
m, other than for slidesCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.55 -- Of a width exceeding 16
mm but not exceeding 35 mm
and of a length exceeding 30 mCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.56 - Of a width exceeding 35
mmCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
Other :
3702.91 -- Of a width not
exceeding 16 mm and of a
length not exceeding 14 mCTH except from heading 37.01 Basket 1 (Endorsed by CRO)G/RO/41
Page 457HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3702.92 -- Of a width not
exceeding 16 mm and of a
length exceeding  14 mCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.93 -- Of a width exceeding 16
mm but not exceeding 35 mmand of a length not exceeding 30
mCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.94 -- Of a width exceeding 16
mm but not exceeding 35 mm
and of a length exceeding 30 mCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
3702.95 -- Of a width exceeding 35
mmCTH except from heading 37.01 Basket 1 (Endorsed by CRO)
37.03 Photographic paper,
paperboard and textiles,
sensitised, unexposed.CTH Basket 1 (Endorsed by CRO)
3703.10 - In rolls of a width
exceeding 610 mmAs indicated at the heading level
3703.20 - Other, for colour
photography (polychrome)
3703.90 - Other
37.04 Photographic plates, film,
paper, paperboard and
textiles, exposed but not
developed.CTH Basket 1 (Endorsed by CRO)
37.05 Photographic plates and film,
exposed and developed, otherthan cinematographic film.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 458
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
37.06 Cinematographic film,
exposed and developed,
whether or not incorporatingsound track or consisting only
of sound track.CTH Basket 1 (Endorsed by CRO)
37.07 Chemical preparations for
photographic uses (other than
varnishes, glues, adhesives and
similar preparations);
unmixed products forphotographic uses, put up in
measured portions or put up
for retail sale in a form ready
for use.[CTH except when this change results
from putting up in measured portions or
for retail sale of products of other
headings]
[CTH, Chapter Note on Mixtures andBlends not applied. (CAN)]Submitted to CRO for decision
(Doc.42.626)
Issue n° 17
3707.10 - Sensitising emulsions As indicated at the heading level
3707.90 - OtherG/RO/41
Page 459CHAPTER 38
Chapter Notes
1. Chemical Reaction   Basket 1
A “chemical reaction” is a process (including a biochemical process) which results in a molecule with a new structure by breaki ng intramolecular
bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.
The following are not considered to be chemical  reactions for the purposes of this definition:
1) dissolving in water or other solvents;
2) the elimination of solvents including solvent water;  or
3) the addition or elimination of water of crystallization
A chemical reaction as defined above is to be considered origin conferring.
2.  Mixtures and Blends    Basket 1,    Submitted to CRO for decision for Bracketed Text (Doc.42.626, Issue No.5)
For the purposes of headings 38.01, 38.04, 38.06, 38.07, 38.08 through 38.15, 38.19 through 38.21, 38.23 and 38.24,  the deliberate and
proportionally controlled mixing or blending (including dispersi ng) of materials [other than the addition of diluents only (SG)  (US)] to conform to
predetermined specifications which results in the production of a good having physical or chemical characteristics which are re levant to the
purposes or uses of the good and are different from the input materials is to be considered to be origin conferring.
3. Purification   Basket 1,    Submitted to CRO for decision for bracketed text to CRO (Doc.OC0014, Issue No.25)
Purification is considered to be origin conferring prov ided that one of the following criteria is satisfied:
a) purification of a good resulting in the elimination of 80 percent of the content of existing impurities;  orb) the reduction or elimination of impurities resulting in a good suitable for one or more of the following applications:
(i) pharmaceutical, medical, cosmetic, veterinary or food grade substances;
(ii) chemical products and reagents for analytical, diagnostic or laboratory uses;
(iii) elements and components for use in in micro-electronics;G/RO/41
Page 460
(iv) specialized optical uses;
[(v) non toxic uses for health and safety ];
(vi) biotechnical use (e.g., in cell culturing, in genetic technology, or as a catalyst);
(vii) carriers used in a separation process;  or
(viii) nuclear grade uses.
4. Separation    Submitted to CRO for decision (Doc.42.626, Issue No.7)
Separation, by chromatography, extraction, precipitation, (refining), or specific mechanical treatments, is considered to be or igin conferring
provided that one of the following criteria is satisfied:
(i) obtaining goods with specific purity;
[(ii) obtaining goods with specific odoriferous characteristics;(iii) obtaining goods with specific flavouring characteristics;] or
(iv) obtaining goods suitable for specific uses..  (EC) (CH) (SG)]
5. Change in particle size
1) Reduction in particle size :   Basket 1
For the purposes of headings 38.02, 38.08, 38.09, 38.11, 38.12 and 38.15, the deliberate and controlled reduction in particle s ize of a good, other
than by merely crushing, resulting in a good having a defined particle size, defined particle size distribution or defined surf ace area, which are
relevant to the purposes of the resulting good and have different physical or chemical characteristics from the input materials  is considered to be
origin conferring.
2) Increase in particle size:     Submitted to CRO for decision ( Doc.42.626, Issue No.4 )
[For the purposes of headings 38.02, 38.08, 38.09, 38.11, 38.12 and 38.15, the deliberate and controlled [modification] in part icle size of a good,
other than by merely crushing [or pressing,] resulting in a good having a defined particle size, defined particle size distribu tion or defined surface
area, which are relevant to the purposes of the resulting good and have different physical or chemical characteristics from the  input materials is
considered to be origin conferring.]
Note: If Paragraph 2 is accepted by the CRO, it should be adopted in the place of Paragraph 1; only the words “modification” and  “or
pressing” are for decision.G/RO/41
Page 4616.  Standard Materials   Basket 1
Standard materials (including standard solutions) are preparations suitable for analytical, calibrating or referencing uses hav ing precise degrees of
purity or proportions which are certified by the manufacturer.  The production of standard materials is to be considered as ori gin conferring.
7.  Packing for retail sale    Basket 1
For the purposes of headings 38.08 and 38.13, the change of classification resulting from the mere putting up for retail sale o f products of this
Chapter is to be disregarded for the determination of origin.
8.  Non-Origin Conferring Processes    Submitted to CRO for decision (Doc. OC0032, Issue No. 24)
[- For the purposes of Chapters 30-38 the addition, whether or not in combination, of the additives enumerated in HS Chapter Not es 1(f) and
1(g) to Chapter 29 for the purposes indicated ther ein is not origin conferring. (CAN) (PHI) (US)]
[Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[Weight (CAN)][Weight or volume, as appropriate (US)][Weight, volume or value, as appropriate (EC)][Total value of parts and related processing activity (CH)]G/RO/41
Page 462
CHAPTER 38
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 38 Miscellaneous chemical
products
38.01 Artificial graphite; colloidal or
semi-colloidal graphite;
preparations based on
graphite or other carbon in
the form of pastes, blocks,plates or other semi-
manufactures.As indicated at the subheading level
3801.10 - Artificial graphite CTSH; or
Change within the subheading fromwaste, scrap or worn-out articlesBasket 1 (Endorsed by CRO)
3801.20 - Colloidal or semi-
colloidal graphiteCTSH Basket 1 (Endorsed by CRO)
3801.30 - Carbonaceous pastes for
electrodes and similar pastes for
furnace liningsCTSH Basket 1 (Endorsed by CRO)
3801.90 - Other CTSH Basket 1 (Endorsed by CRO)
38.02 Activated carbon; activated
natural mineral products;
animal black, including spentanimal black.CTH Basket 1 (Endorsed by CRO)
3802.10 - Activated carbon As indicated at the heading level
3802.90 - Other
38.03 Tall oil, whether or not
refined.As indicated at the split heading levelG/RO/41
Page 463HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex 38.03(a) -  Refined [CTHS] (EC) (CH) (JPN)(NOR)]
[CTH] (US) (PHI)Submitted to CRO for decision
(Doc.42.626)
Issue n° 18
ex 38.03(b) -  Other CTH Basket 1 (Endorsed by CRO)
38.04 Residual lyes from the
manufacture of wood pulp,
whether or not concentrated,desugared or chemically
treated, including lignin
sulphonates, but excluding tall
oil of heading No. 38.03.CTH Basket 1 (Endorsed by CRO)
38.05 Gum, wood or sulphate
turpentine and other terpenic
oils produced by the
distillation or other treatment
of coniferous woods; crudedipentene; sulphite turpentine
and other crude para-cymene;
pine oil containing alpha-
terpineol as the main
constituent.As indicated at the subheading level
3805.10 - Gum, wood or sulphate
turpentine oilsCTH Basket 1 (Endorsed by CRO)
3805.20 - Pine oil CTSH Basket 1 (Endorsed by CRO)
3805.90 - Other CTSH Basket 1 (Endorsed by CRO)
38.06 Rosin and resin acids, and
derivatives thereof; rosin
spirit and rosin oils; run gums.As indicated at the subheading level
3806.10 - Rosin and resin acids CTSH Basket 1 (Endorsed by CRO)G/RO/41
Page 464
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3806.20 - Salts of rosin, of resin
acids or of derivatives of rosin
or resin acids, other than salts ofrosin adductsCTSH Basket 1 (Endorsed by CRO)
3806.30 - Ester gums CTSH Basket 1 (Endorsed by CRO)
3806.90 - Other CTSH Basket 1 (Endorsed by CRO)
38.07 Wood tar; wood tar oils; wood
creosote; wood naphtha;
vegetable pitch; brewers' pitch
and similar preparations
based on rosin, resin acids oron vegetable pitch.CTH Basket 1 (Endorsed by CRO)
38.08 Insecticides, rodenticides,
fungicides, herbicides, anti-
sprouting products and plant-
growth regulators,
disinfectants and similar
products, put up in forms orpackings for retail sale or as
preparations or articles (for
example, sulphur-treated
bands, wicks and candles, and
fly-papers).[CTH] (JPN) (US) (NZ) (BRA) (CH)
(EC)[CTSH] (CAN) (MEX) (SG)Submitted to CRO for decision
(Doc.42.626)
Issue n° 19
3808.10 - Insecticides As indicated at the heading level
3808.20 - Fungicides
3808.30 - Herbicides, anti-
sprouting products and plant-
growth regulators
3808.40 - Disinfectants
3808.90 - OtherG/RO/41
Page 465HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
38.09 Finishing agents, dye carriers
to accelerate the dyeing or
fixing of dyestuffs and otherproducts and preparations
(for example, dressings and
mordants), of a kind used in
the textile, paper, leather or
like industries, not elsewherespecified or included.[CTH] (EC) (CH) (CAN) (JPN) (NZ)
[CTSH] (US) (SG)Submitted to CRO for decision
(Doc.42.626)
Issue n° 20
3809.10 - With a basis of
amylaceous substancesAs indicated at the heading level
-O t h e r  :
3809.91 -- Of a kind used in the
textile or like industries
3809.92 -- Of a kind used in the
paper or like industries
3809.93 -- Of a kind used in the
leather or like industries
38.10 Pickling preparations for
metal surfaces; fluxes and
other auxiliary preparations
for soldering, brazing or
welding; soldering, brazing or
welding powders and pastesconsisting of metal and other
materials; preparations of a
kind used as cores or coatings
for welding electrodes or rods.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 466
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3810.10 - Pickling preparations
for metal surfaces; soldering,
brazing or welding powders andpastes consisting of metal and
other materialsAs indicated at the heading level
3810.90 - Other
38.11 Anti-knock preparations,
oxidation inhibitors, gum
inhibitors, viscosity improvers,
anti-corrosive preparationsand other prepared additives,
for mineral oils (including
gasoline) or for other liquids
used for the same purposes as
mineral oils.[CTH] (JPN) (CAN) (MEX) (EC) (US)
(CH)(NZ)
[CTSH] (SG)Submitted to CRO for decision
(Doc.42.626)
Issue n° 21
-Anti-knock preparations : As indicated at the heading level
3811.11 -- Based on lead compounds
3811.19 -- Other
- Additives for lubricating oils :
3811.21 -- Containing petroleum oils or
oils obtained from bituminousminerals
3811.29 -- Other
3811.90 - Other
38.12 Prepared rubber accelerators;
compound plasticisers forrubber or plastics, not
elsewhere specified or
included; anti-oxidising
preparations and other
compound stabilisers for
rubber or plastics.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 467HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3812.10 - Prepared rubber
acceleratorsAs indicated at the heading level
3812.20 - Compound plasticisers
for rubber or plastics
3812.30 - Anti-oxidising
preparations and other
compound stabilisers for rubber
or plastics
38.13 Preparations and charges for
fire-extinguishers; chargedfire-extinguishing grenades.CTH Basket 1 (Endorsed by CRO)
38.14 Organic composite solvents
and thinners, not elsewhere
specified or included;prepared paint or varnish
removers.CTH Basket 1 (Endorsed by CRO)
38.15 Reaction initiators, reaction
accelerators and catalytic
preparations, not elsewhere
specified or included.CTH Basket 1 (Endorsed by CRO)
- Supported catalysts : As indicated at the heading level
3815.11 -- With nickel or nickel
compounds as the active
substanceAs indicated at the heading level
3815.12 -- With precious metal or
precious metal compounds as
the active substance
3815.19 -- Other
3815.90 - OtherG/RO/41
Page 468
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
38.16 Refractory cements, mortars,
concretes and similar
compositions, other thanproducts of heading No. 38.01.CTH Basket 1 (Endorsed by CRO)
38.17 Mixed alkylbenzenes and
mixed alkylnaphthalenes,
other than those of heading
No. 27.07 or 29.02.CTH Basket 1 (Endorsed by CRO)
3817.10 - Mixed alkylbenzenes As indicated at the heading level
3817.20 - Mixed
alkylnaphthalenes
38.18 Chemical elements doped for
use in electronics, in the form
of discs, wafers or similar
forms; chemical compounds
doped for use in electronics.[CTH]  (JPN) (US) (CAN) (MEX) (NZ)
(CH)
[CTH;  or
Change within this heading following
the cutting into discs, wafers or similarforms, polishing or coating with an
epitaxial layer (EC)]Submitted to CRO for decision
(Doc.42.626)
Issue n° 22
[Value added rule] (SG)
38.19 Hydraulic brake fluids and
other prepared liquids for
hydraulic transmission, not
containing or containing less
than 70 % by weight of
petroleum oils or oils obtainedfrom bituminous minerals.CTH Basket 1 (Endorsed by CRO)
38.20 Anti-freezing preparations
and prepared de-icing fluids.CTH Basket 1 (Endorsed by CRO)
38.21 Prepared culture media for
development of micro-
organisms.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 469HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
38.22 Diagnostic or laboratory
reagents on a backing and
prepared diagnostic orlaboratory reagents whether
or not on a backing, other
than those of heading No.
30.02 or 30.06.CTH Basket 1 (Endorsed by CRO)
38.23 Industrial monocarboxylic
fatty acids; acid oils from
refining; industrial fattyalcohols.As indicated at the subheading level
- Industrial
monocarboxylic fatty acids; acid
oils from refining :
3823.11 -- Stearic acid CTSH Basket 1 (Endorsed by CRO)
3823.12 -- Oleic acid CTSH Basket 1 (Endorsed by CRO)
3823.13 -- Tall oil fatty acids CTSH Basket 1 (Endorsed by CRO)
3823.19 -- Other CTSH Basket 1 (Endorsed by CRO)
3823.70 - Industrial fatty alcohols CTSH Basket 1 (Endorsed by CRO)
38.24 Prepared binders for foundry
moulds or cores; chemical
products and preparations of
the chemical or allied
industries (including those
consisting of mixtures ofnatural products), not
elsewhere specified or
included; residual products of
the chemical or allied
industries, not elsewherespecified or included.As indicated at the subheading levelG/RO/41
Page 470
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3824.10 - Prepared binders for
foundry moulds or coresCTSH Basket 1 (Endorsed by CRO)
3824.20 - Naphthenic acids, their
water-insoluble salts and their
estersCTSH Basket 1 (Endorsed by CRO)
3824.30 - Non-agglomerated
metal carbides mixed together orwith metallic bindersCTSH Basket 1 (Endorsed by CRO)
3824.40 - Prepared additives for
cements, mortars or concretesCTSH Basket 1 (Endorsed by CRO)
3824.50 - Non-refractory mortars
and concretesCTSH Basket 1 (Endorsed by CRO)
3824.60 - Sorbitol other than that
of subheading No. 2905.44CTSH Basket 1 (Endorsed by CRO)
- Mixtures containing
perhalogenated derivatives of
acyclic hydrocarbons containing
two or more different halogens :
3824.71 -- Containing acyclic
hydrocarbons perhalogenated
only with fluorine and chlorineCTSH Basket 1 (Endorsed by CRO)
3824.79 -- Other CTSH Basket 1 (Endorsed by CRO)
3824.90 - Other CTSH Basket 1( Endorsed by CRO)G/RO/41
Page 471CHAPTER 39
Chapter Notes
1. Chemical Reaction Paragraph a ) : Basket 1
Paragraph b ) : Submitted to CRO for decision (Doc.42.627, Issue No.1)
a) A “chemical reaction” is a process (including a biochemical process) which results in a molecule with a new structure by brea king
intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.
The following are not considered to be chemical  reactions for the purposes of this definition:
1) dissolving in water or other solvents;
2) the elimination of solvents including solvent water;  or
3) the addition or elimination of water of crystallization
A chemical reaction as defined above is to be considered origin conferring.
This definition comprises all types of polymerization reactions and chemical modification of polymers, including cross-linking by hardener/cross-
linking agents and irradiation.
b) [The products are considered to have undergone a chemical reaction only if more than 30% by weight of the monomer units in t he total
polymer content have undergone a modification which results in the breaking of the bonds of the appendages to the main polymer chain and by
forming new intramolecular bonds or by altering the spatial arrangement of the atoms of the appendages.
The following are not considered to be chemical  reactions for the purposes of this definition:
1) dissolving in water or other solvents;
2) the elimination of solvents including solvent water; or
3) the addition or elimination of water of crystallization.
(This rule applies to headings 39.01- 39.13.) (CAN)]G/RO/41
Page 472
2. Mixtures and Blends    Submitted to  CRO for decision (Doc.42.627, Issue No.2 )
a) [The deliberate and proportionally controlled mixing or blending including dispersing of materials [other than the addition o f diluents only]
to conform to predetermined specifications which results in the production of a good having physical or chemical characteristic s which are relevant
to the purposes or uses of the good and are different from the input materials is to be considered to be origin conferring.]
b) [The deliberate and proportionally controlled mixing or blendi ng of polymers, which results in the production of a polymer bl end having
physical and/or chemical characteristics different from the individual constituents, is considered to be origin conferring.  (H eadings 39.01-39.15)
This definition comprises polymer compounding and the use of recycled polymers. (EC)]
c) [The deliberate and proportionally controlled mixing or blendi ng of materials other than only the addition of solvents or dil uents, to
conform to predetermined specifications which results in the production of a good having performance characteristics which are relevant to the
purposes or uses of the good and are different from those of the input materials, provided that no more than 60 percent by weig ht of the total
polymeric component in the finished good originates from a coun try other than the country where the blending occurred.  (CAN)]
3. Purification  Basket 1,    Submitted to CRO fo r decision for bracketed te xt  (Doc.OC0014, Issue No.25)
Purification is considered to be origin conferring prov ided that one of the following criteria is satisfied:
a) purification of a good resulting in the elimination of 80 percent of the content of existing impurities;  or
b) the reduction or elimination of impurities resulting in a good suitable for one or more of the following applications:
(i) pharmaceutical, medical, cosmetic, veterinary or food grade substances;
(ii) chemical products and reagents for analytical, diagnostic or laboratory uses;
(iii) elements and components for use in in micro-electronics;(iv) specialized optical uses;
[(v) [non toxic uses for health and safety ];
(vi) biotechnical use (e.g., in cell culturing, in genetic technology, or as a catalyst);
(vii) carriers used in a separation process; or
(viii) nuclear grade uses.G/RO/41
Page 4734. Change in particle size
1) Reduction in particle size :   Basket 1
The deliberate and controlled reduction in particle size of a good including micronizing by diss olving a polymer and subsequent  precipitation, other
than by merely crushing, resulting in a good having a defined particle size, defined particle size distribution or defined surf ace area relevant to the
purposes of the resulting good and having different physical or chemical characteristics from the input materials is considered  to be origin
conferring.
2) Increase in particle size :    Submitted to CRO for decision (Doc.42.626, Issue No.4)
[The deliberate and controlled modification in particle size of a good including micronizing by dissolving a polymer and subseq uent precipitation,
other than by merely crushing, resulting in a good having a defined particle size, defined particle size distribution or define d surface area, which are
relevant to the purposes of the resulting good and have different physical or chemical characteristics from the input materials  is considered to be
origin conferring. (CH)]
Note: If Paragraph 2 is accepted by the CRO, the term “reduction” in Paragraph 1 shall be amended to “modification”. (Sec)
5. Separation (Headings 39.01- 39.14)    Submitt ed to CRO for decision (Doc.42.626, Issue No.7)
[Separation, by chromatography, extraction, precipitation, (refining) , or specific mechanical treatments, is considered to be o rigin conferring
provided that one of the following criteria is satisfied:
(i) obtaining goods with specific molecular weight distribution;
(ii) obtaining goods with specific purity;
[(iii) obtaining goods with specific odoriferous characteristics;
(iv) obtaining goods with specific flavouring characteristics;]  or(v)  obtaining goods suitable for specific uses..  (EC) (CH) (SG)]
6. Shaping and further processing on semi-finished articles (Headings 39.16 - 39.17 and 39.19 - 39.21)    Submitted to CRO for decision
(Doc.42.626, Issue No.3)
[The following shaping and other processes on semi-finished articles in order to obtain finished articles are regarded as subst antial transformations:G/RO/41
Page 474
Cold drawing, hand-fabricating thermoforming, laminating, formin g of vulcanized fibre, bonding of plastics, machining, and coat ing with an
adhesive layer.  (EC) (CH)]
[Product Specific] [Chapter] Residual Rule
 [When application of the primary rules of this chapter (includi ng the product specific rules provided in the matrix) does not result in a
determination of a country of origin, the country of origin shall be determined as follows:
1. Goods of headings 39.01 through 39.14 produced by mixing or otherw ise combining materials of diff erent origins, originate in the country
that produced the polymers that predominate by weight or volume, as appropriate, over those of each other single country.]
 [Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[Weight (CAN)]
[Weight or volume, as appropriate (EC)][Total value of parts and related processing activity (CH)]
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 39 Plastics and articles thereof
39.01 Polymers of ethylene, in
primary forms[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules (JPN) (EC)(BRA) (US)]
[CC or Chapter Rules (CAN) ]Submitted to CRO for decision (
doc. 42.627 )Issue n° 1
Issue n° 2
3901.10 -  Polyethylene having a specific
gravity of less than 0.94As indicated at the heading level.
3901.20 -   Polyethylene having a
specific gravity of 0.94 or more
3901.30 -  Ethylene-vinyl acetate
copolymers
3901.90 -  OtherG/RO/41
Page 475HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
39.02 Polymers of propylene or of
other olefins, in primary
forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)][CC or Chapter Rules (CAN) ]Submitted to CRO for decision (Doc.
42.627)
Issue n° 1Issue n° 2
3902.10 -  Polypropylene As indicated at the heading level.
3902.20 -  Polyisobutylene As indicated at the heading level.
3902.30 -  Propylene copolymers
3902.90 -  Other .
39.03 Polymers of styrene, in
primary forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)][CC or Chapter Rules (CAN) ]Submitted to CRO for decision (Doc.
42.627)
Issue n° 1Issue n° 2
-  Polystyrene : As indicated at the heading level.
3903.11 --  Expansible
3903.19 --  Other
3903.20 -  Styrene-acrylonitrile (SAN)
copolymers
3903.30 -  Acrylonitrile-butadiene-
styrene (ABS) copolymers
3903.90 -  Other
39.04 Polymers of vinyl chloride or
of other halogenated olefins, inprimary forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules(JPN)(EC)(BRA) (US)]
[CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)Issue n° 1
Issue n° 2
3904.10 -  Polyvinyl chloride, not mixed
with any other substancesAs indicated at the heading level.
-  Other polyvinyl chloride :
3904.21 --  Non-plasticised
3904.22 --  Plasticised
3904.30 -  Vinyl chloride-vinyl acetate
copolymersG/RO/41
Page 476
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3904.40 -  Other vinyl chloride
copolymers
3904.50 -  Vinylidene chloride polymers
-  Fluoro-polymers :
3904.61 --  Polytetrafluoroethylene
3904.69 --  Other
3904.90 -  Other
39.05 Polymers of vinyl acetate or of
other vinyl esters, in primary
forms; other vinyl polymers in
primary forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)]
[CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 1
Issue n° 2
-  Polyvinyl acetate : As indicated at the heading level.
3905.12 --  In aqueous dispersion
3905.19 --  Other
-  Vinyl acetate copolymers :
3905.21 --  In aqueous dispersion
3905.29 --  Other
Other
3905.30 -  Polyvinyl alcohol, whether or
not containing unhydrolysed
acetate groups
-  Other :
3905.91 --  Copolymers
3905.99 --  Other
39.06 Acrylic polymers in primary
forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)]
[CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 1
Issue n° 2
3906.10 -  Polymethyl methacrylate As indicated at the heading level.
3906.90 -  OtherG/RO/41
Page 477HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
39.07 Polyacetals, other polyethers
and epoxide resins, in primary
forms; polycarbonates, alkydresins, polyallyl esters and
other polyesters, in primary
forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)][CC or Chapter Rules (CAN) ]Submitted to CRO for Decision
(Doc. 42.627)
Issue n° 1Issue n° 2
3907.10 -  Polyacetals As indicated at the heading level.
3907.20 -  Other polyethers
3907.30 -  Epoxide resins As indicated at the heading level.
3907.40 -  Polycarbonates
3907.50 -  Alkyd resins
3907.60 -  Polyethylene terephthalate
-  Other polyesters :
3907.91 --  Unsaturated
3907.99 --  Other
39.08 Polyamides in primary forms. [CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)]
[CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 1
Issue n° 2
3908.10 - Polyamide-6, -11, -12, -6-,6, -
6,9, -6,10 or -6,12As indicated at the heading level.
3908.90 -  Other
39.09 Amino-resins, phenolic resins
and polyurethanes, in primary
forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)]
[CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 1
Issue n° 2
3909.10 -  Urea resins; thiourea resins As indicated at the heading level.
3909.20 -  Melamine resins
3909.30 -  Other amino-resins
3909.40 -  Phenolic resins
3909.50 -  PolyurethanesG/RO/41
Page 478
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
39.10 Silicones in primary forms [CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)][CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 1Issue n° 2
39.11 Petroleum resins, coumarone-
indene resins, polyterpenes,
polysulphides, polysulphones
and other products specified
in Note 3 to this Chapter, not
elsewhere specified orincluded, in primary forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)]
[CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 1
Issue n° 2
3911.10 -  Petroleum resins, coumarone,
indene or coumarone-indene
resins and polyterpenesAs indicated at the heading level.
3911.90 -  Other
39.12 Cellulose and its chemical
derivatives, not elsewhere
specified or included, in
primary forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)]
[CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 1
Issue n° 2
-  Cellulose acetates : As indicated at the heading level.
3912.11 --  Non-plasticised
3912.12 --  Plasticised
3912.20 -  Cellulose nitrates (including
collodions)
-  Cellulose ethers :
3912.31 --  Carboxymethylcellulose and
its salts
3912.39 --  Other
3912.90 -  OtherG/RO/41
Page 479HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
39.13 Natural polymers (for
example, alginic acid) and
modified natural polymers(for example, hardened
proteins, chemical derivatives
of natural rubber), not
elsewhere specified or
included, in primary forms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)][CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 1Issue n° 2
3913.10 -  Alginic acid, its salts and
estersAs indicated at the heading level.
3913.90 -  Other
39.14 Ion-exchangers based on
polymers of headings Nos.
39.01 to 39.13, in primaryforms.[CTSH or Chapter Rules (SG)]
[CTH or Chapter Rules
(JPN)(EC)(BRA) (US)][CC or Chapter Rules (CAN) ]Submitted to CRO  for decision
(Doc.  42.627)
Issue n° 1Issue n° 2
39.15 Waste, parings and scrap of
plastics.The origin of the goods shall be the
country in which the waste and scrap of
this heading is collected or derived from
manufacturing or processing operations
or from consumption, [or Chapter Rule
on recycling of waste and scrap. (EC)]Basket 1
Basket 2 for the bracketed text.
3915.10 -  Of polymers of ethylene As indicated at the heading level.
3915.20 -  Of polymers of styrene
3915.30 -  Of polymers of vinyl chloride
3915.90 -  Of other plastics
39.16 Monofilament of which any
cross-sectional dimensionexceeds 1 mm, rods, sticks and
profile shapes, whether or not
surface-worked but not
otherwise worked, of plastics.CTH
[or Chapter Rule for forming and furtherprocessing on semi-finished articles
(EC) CH)]
[or coating of articles of this heading
with an adhesive layer. (EC)]Submitted to CRO for decision
(Doc. 42.627)Issue n° 3
3916.10 - Of polymers of ethylene As indicated at the heading level.G/RO/41
Page 480
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3916.20 - Of polymers of vinyl chloride As indicated at the heading level.
3916.90 - Of other plastics
39.17 Tubes, pipes and hoses, and
fittings therefor (for example,
joints, elbows, flanges), ofplastics.CTH
[or Chapter Rule for forming and further
processing on semi-finished articles(EC) CH)]Submitted to CRO for decision (Doc.
42.627)
Issue n° 3
3917.10 - Artificial guts (sausage
casings) of hardened protein or
of cellulosic materialsAs indicated at the heading level.
- Tubes, pipes and hoses, rigid:
3917.21 -- Of polymers of ethylene
3917.22 -- Of polymers of propylene
3917.23 -- Of polymers of vinyl chloride
3917.29 -- Of other plastics
- Other tubes, pipes and hoses:
3917.31 -- Flexible tubes, pipes and
hoses, having a minimum burst
pressure of 27.6 MPa
3917.32 -- Other, not reinforced or
otherwise combined with othermaterials, without fittings
3917.33 -- Other, not reinforced or
otherwise combined with other
materials, with fittings
3917.39 -- Other
3917.40 - FittingsG/RO/41
Page 481HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
39.18 Floor coverings of plastics,
whether or not self-adhesive,
in rolls or in the form of tiles;wall or ceiling coverings of
plastics, as defined in Note 9 to
this Chapter.CTH Basket 1 (Endorsed by CRO)
3918.10 - Of polymers of vinyl chloride As indicated at the heading level.
3918.90 - Of other plastics
39.19 Self-adhesive plates, sheets,
film, foil, tape, strip and other
flat shapes, of plastics,
whether or not in rolls.CTH
[or a change within the heading to
reinforced, laminated or supported
material, provided supplementary
criteria are satisfied (US)]
[or Chapter Rule for forming and furtherprocessing on semi-finished articles
(EC) CH)]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 3
3919.10 -  In rolls of a width not
exceeding 20 cmAs indicated at the heading level.
3919.90 -  Other
39.20 Other plates, sheets, film, foil
and strip, of plastics, non-
cellular and not reinforced,
laminated, supported or
similarly combined with other
materials.CTH
[or change within this heading following
the vacuum deposition of metal on the
surface of plastics (EC)]
[or Chapter Rule for forming and further
processing on semi-finished articles(EC) CH)]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 3
Issue n° 4
3920.10 - Of polymers of ethylene As indicated at the heading level
3920.20 - Of polymer of propylene
3920.30 - Of polymers of styrene
- Of polymers of vinyl chloride:
3920.41 -- Rigid
3920.42 -- Flexible .G/RO/41
Page 482
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
- Of acrylic polymers: As indicated at the heading level.
3920.51 -- Of polymethyl methacrylate
3920.59 -- Other
- Of polycarbonates, alkyd
resins, polyallyl esters or otherpolyesters:
3920.61 -- Of polycarbonates
3920.62 -- Of polyethylene terephthalate
3920.63 -- Of unsaturated polyesters
3920.69 -- Of other polyesters
- Of cellulose or its chemical
derivatives:
3920.71 -- Of regenerated cellulose
3920.72 -- Of vulcanised fibre
3920.73 -- Of cellulose acetate
3920.79 -- Of other cellulose derivatives
- Of other plastics:
3920.91 -- Of polyvinyl butyral
3920.92 -- Of polyamides
3920.93 -- Of amino-resins
3920.94 -- Of phenolic resins
3920.99 -- Of other plasticsG/RO/41
Page 483HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
39.21 Other plates, sheets, film, foil
and strip, of plastics.CTH
[or a change within the heading to
reinforced, laminated or supportedmaterial, provided supplementary
criteria are satisfied (US)]
[or change within this heading following
the vacuum deposition of metal on the
surface of plastics (EC)][or Chapter Rule for forming and further
processing on semi-finished articles
(EC) CH)]Submitted to CRO for decision
(Doc. 42.627)
Issue n° 3Issue n° 4
- Cellular: As indicated at the heading level
3921.11 -- Of polymers of styrene
3921.12 -- Of polymers of vinyl chloride
3921.13 -- Of polyurethanes
3921.14 -- Of regenerated cellulose
3921.19 -- Of other plastics
3921.90 - Other
39.22 Baths, shower-baths, wash-
basins, bidets, lavatory pans,
seats and covers, flushing
cisterns and similar sanitary
ware, of plastics.CTH Basket 1 (Endorsed by CRO)
3922.10 - Baths, shower-baths and wash-
basinsAs indicated at the heading level
3922.20 - Lavatory seats and covers
3922.90 - Other
39.23 Articles for the conveyance or
packing of goods, of plastics;
stoppers, lids, caps and otherclosures, of plastics.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 484
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
3923.10 - Boxes, cases, crates and
similar articlesAs indicated at the heading level
- Sacks and bags (including
cones):
3923.21 -- Of polymers of ethylene
3923.29 -- Of other plastics
3923.30 - Carboys, bottles, flasks and
similar articles
3923.40 - Spools, cops, bobbins and
similar supports
3923.50 -- Stoppers, lids, caps and other
closures
3923.90 - Other
39.24 Tableware, kitchenware, other
household articles and toiletarticles, of plastics.CTH Basket 1 (Endorsed by CRO)
3924.10 - Tableware and kitchenware As indicated at the heading level
3924.90 - Other
39.25 Builders' ware of plastics, not
elsewhere specified or
included.CTH
[or assembly of articles from parts or
components classified within theheading. (US) (CH) (PHI)]Submitted to CRO for decision (Doc.
42.627)
Issue n° 5
3925.10 -  Reservoirs, tanks, vats and
similar containers, of a capacityexceeding 300 lAs indicated at the heading level.
3925.20 -  Doors, windows and their
frames and thresholds for doors
3925.30 -  Shutters, blinds (including
Venetian blinds) and similar
articles and parts thereof
3925.90 -  Other As indicated at the heading level.G/RO/41
Page 485HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
39.26 Other articles of plastics and
articles of other materials of
headings Nos. 39.01 to 39.14.CTH
[or assembly of articles from parts or
components classified within theheading. (US) (PHI)]
[for subheading 3926.20, CTH or change
within this subheading following
complete making-up (EC)]Submitted to CRO for decision (Doc.
42.627)
Issue n° 5
The origin criterion for goods of
3926.20 is to be laid down in
accordance with the CRO decision on
the origin criterion for assembled or
made up textile apparel.
3926.10 - Office or school supplies As indicated at the heading level.
3926.20 - Articles of apparel and
clothing accessories including
gloves)
3926.30 - Fittings for furniture,
coachwork or the like
3926.40 - Satuettes and other ornamental
articles
3926.90 - OtherG/RO/41
Page 486
CHAPTER 40
Chapter Notes
1. Chemical Reaction      Basket 1
A “chemical reaction” is a process (including a biochemical process) which results in a molecule with a new structure by breaki ng intramolecular
bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.
The following are not considered to be chemical  reactions for the purposes of this definition:
a) dissolving in water or other solvents;
b) the elimination of solvents including solvent water;  or
c) the addition or elimination of water of crystallization
A chemical reaction as defined above is to be considered origin conferring.
2. Mixtures and Blends 1)  addition of diluents only;  and
2)  percentage of originating polymer content.     Submitted to CRO for decision (Doc.42.627, Issue No.6)
[The deliberate and proportionally controlled mixing or blending (including dispersing) of materials [other than the addition o f diluents only] to
conform to predetermined specifications which results in the production of a good having physical or chemical characteristics w hich are relevant to
the purposes or uses of the good and are different from the input materials is to be considered to be origin conferring [ provi ded that no more than
60 percent by weight of the total polymeric component in the finished good originates from a country other than the country whe re the blending
occurred.  (CAN)]
[Criteria to apply Appendix 2, Rule 2(g)]
The criteria to determine the major portion of the materials as set forth in Appendix 2, Rule2(g) for this Chapter are:
[Weight (CAN)]
[Weight or volume, as appropriate (US)][Weight volume or value, as appropriate (EC)]
[Total value of parts and related processing activity (CH)]G/RO/41
Page 487CHAPTER 40
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 40 Rubber and articles thereof
40.01 Natural rubber, balata, gutta-
percha, guayule, chicle and
similar natural gums, in
primary forms or in plates,
sheets or strip.Proposals as specified at the
subheading level
4001.10 -  Natural rubber latex, whether
or not pre-vulcanisedThe country origin of origin of the goods
of this subheading shall be the country in
which the goods are obtained in their
natural or unprocessed state.Basket 1 (Endorsed by CRO)
-  Natural rubber in other forms :
4001.21 --  Smoked sheets [CTSH (JPN)  (CAN)
(MEX)(US)(NZ)(IND)(SG) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)
[The country of origin of the good ofthis subheading shall be the country in
which the goods are obtained in their
natural or unprocessed state (EC)]Issue n° 7
4001.22 --  Technically specified natural
rubber (TSNR)[CTSH (JPN)  (CAN)
(MEX)(US)(NZ)(IND)(SG) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)
[The country of origin of the goods ofthis subheading shall be the country in
which the goods are obtained in their
natural or unprocessed state (EC)]Issue n° 7
4001.29 --  Other [CTSH (JPN)  (CAN)
(MEX)(US)(NZ)(IND)(SG) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)G/RO/41
Page 488
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
[The origin of the goods shall be the
country in which the goods of this
heading are obtained in their natural orunprocessed state (EC) ]Issue n° 7
4001.30 -  Balata, gutta-percha, guayule,
chicle and similar natural gumsThe origin of the goods shall be the
country in which the goods of this
heading are obtained in their natural or
unprocessed stateBasket 1 (Endorsed by CRO)
40.02 Synthetic rubber and factice
derived from oils, in primary
forms or in plates, sheets or
strip; mixtures of any product
of heading No 40.01 with any
product of this heading, inprimary forms or in plates,
sheets or strip.As specified at the subheading level
-  Styrene-butadiene rubber
(SBR); carboxylated styrene-
butadiene rubber (XSBR) :
4002.11 --  Latex CTH Basket 1 (Endorsed by CRO)
4002.19 --  Other [CTH (CAN) (MEX) (US) (NZ) (SG)
(EC)][ CTH; or
Change to plates, sheets or strip of this
subheading from latex of the same
heading  (JPN) (KOR)]Submitted to CRO for decision (Doc.
42.627)Issue n° 8
4002.20 -  Butadiene rubber (B R) [CTH(CAN)(MEX)(US) (NZ)
(SG)(EC)]
[ CTH; orChange to plates, sheets or strip of this
subheading from latex of the same
heading  (JPN) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 8G/RO/41
Page 489HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
-  Isobutene-isoprene (butyl)
rubber (IIR); halo-isobutene-
isoprene rubber (CIIR or BIIR) :
4002.31 --  Isobutene-isoprene (butyl)
rubber (IIR)[CTH (CAN) (MEX) (US) (NZ) (SG)
(EC)][CTH; or
Change to plates, sheets or strip of this
subheading from latex of the same
heading  (JPN) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)Issue n° 8
4002.39 --  Other [CTH (CAN) (MEX) (US) (NZ) (SG)
(EC)]
[ CTH or
Change to plates, sheets or strip of this
subheading from latex of the sameheading  (JPN) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 8
- Chloroprene (chlorobutadiene)rubber (CR) :
4002.41 --  Latex CTH Basket 1 (Endorsed by CRO)
4002.49 --  Other [CTH (CAN) (MEX) (US) (NZ) (SG)
(EC)]
[ CTH; or
Change to plates, sheets or strip of this
subheading from latex of the same
heading  (JPN) (KOR)]Submitted to CRO for decision (Doc.
42.627)
Issue n° 8
-  Acrylonitrile-butadiene rubber
(NBR) :
4002.51 --  Latex CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 490
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4002.59 --  Other [CTH (CAN) (MEX) (US) (NZ) (SG)
(EC)]
[ CTH; orChange to plates, sheets or strip of this
subheading from latex of the same
heading  (JPN) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 8
4002.60 -  Isoprene rubber (IR) [CTH (CAN) (MEX) (US) (NZ) (SG)
(EC)]
[ CTH; or
Change to plates, sheets or strip of thissubheading from latex of the same
heading  (JPN) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 8
4002.70 -  Ethylene-propylene-non-
conjugated diene rubber(EPDM)[CTH (CAN) (MEX) (US) (NZ) (SG)
(EC)][ CTH; or
Change to plates, sheets or strip of this
subheading from latex of the same
heading  (JPN) (KOR)]Submitted to CRO for decision (Doc.
42.627)Issue n° 8
4002.80 -  Mixtures of any product of
heading No. 40.01 with any
product of this headingCTH, except from heading 40.01 Basket 1
-  Other :
4002.91 --  Latex CTH Basket 1 (Endorsed by CRO)
4002.99 --  Other [CTH (CAN) (MEX) (US) (NZ) (SG)
(EC)]
[ CTH or
Change to plates, sheets or strip of this
subheading from latex of the same
heading  (JPN) (KOR)]Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 8
40.03 Reclaimed rubber in primary
forms or in plates, sheets or
strip.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 491HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
40.04 Waste, parings and scrap of
rubber (other than hard
rubber) and powders andgranules obtained therefrom.The origin of the goods shall be the
country in which the rubber waste of this
heading is derived or collected frommanufacturing or processing operations
or from consumptionBasket 1 (Endorsed by CRO)
40.05 Compounded rubber,
unvulcanised, in primary
forms or in plates, sheets or
strip.[CTH (JPN) (US) (NZ) (EC) (MEX)
(CAN)]Submitted to CRO for decision (Doc.
42.627)
Issue n° 9
[CTSH (CH) (KOR)]
4005.10 -  Compounded with carbon
black or silicaAs specified for the heading
4005.20 -  Solutions; dispersions other
than those of subheading
No. 4005.10
-  Other :
4005.91 --  Plates, sheets and strip
4005.99 --  Other
40.06 Other forms (for example,
rods, tubes and profile shapes)
and articles (for example, discs
and rings), of unvulcanised
rubber.As specified for the subheadings
4006.10 -  "Camel-back" strips for
retreading rubber tyres[CTH (JPN) (NZ) (EC)] Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 10
[CTSH (US) (MEX)]
[CTH, except from heading  40.05; or
A change to this heading from heading40.05, provided  that one or more
supplementary requirement(s) , as the
case may be, is/are met (CAN)]G/RO/41
Page 492
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4006.90 -  Other [CTH (NZ) (EC) (JPN)] Submitted to CRO  for decision
(Doc. 42.627)
Issue n° 10
[CTH, except from heading 40.05; orA change to this heading from heading40.05, provided  that one or more
supplementary requirement(s) , as the
case may be, is/are met (CAN)]
[As specified for split subheading (US)(MEX) ]
[ex 4006.90(a) - Rods, tubes and other profile
shapes (US)CTSHS (US) (MEX)
ex 4006.90(b) - Other (US) CTSHS (US) (MEX)]
40.07 Vulcanised rubber thread and
cord.CTH Basket 1 (Endorsed by CRO)
40.08 Plates, sheets, strip, rods and
profile shapes, of vulcanised
rubber other than hardrubber.[CTH (JPN) (CAN) (MEX) (NZ) SG)
(EC)]
[CTSH (CH)]Submitted to CRO for decision (Doc.
42.627)
Issue n° 11
- Of cellular rubber : As indicated at heading level
4008.11 -- Plates,sheets and strip
4008.19 -- Other
- Of non-cellular rubber:
4008.21 -- Plates,sheets and strip
4008.29 -- Other
40.09 Tubes, pipes and hoses, of
vulcanised rubber other than
hard rubber, with or without
their fittings (for example,joints, elbows, flanges).CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 493HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
40.10 Conveyor or transmission
belts or belting, of vulcanised
rubber.CTH Basket 1 (Endorsed by CRO)
40.11 New pneumatic tyres, of
rubber.CTH Basket 1 (Endorsed by CRO)
40.12 Retreaded or used pneumatic
tyres of rubber; solid orcushion tyres, interchangeable
tyre treads and tyre flaps, of
rubber.As specified for subheadings
4012.10 -  Retreaded tyres CTSH Basket 1 (Endorsed by CRO)
4012.20 -  Used pneumatic tyres [The country of origin of the goods of
this subheading is the country in whichthese goods were last collected and
packed for shipment (EC) (US) (NZ)
(CH) (IND)]Submitted to CRO for decision (Doc.
42.627)Issue n° 12
[CTSH except from heading 40.11 andsubheading 4012.10. (PHI)]
[as indicated at the split subheading
level (CAN)(JPN]
[ex 4012.20(a) --   Showing signs of
appreciable use and being
presented (unsorted) in bulk or
in bulk packingsThe country of origin of the goods ofthis split subheading is the country inwhich these goods were last collected
and packed for shipment (CAN) (JPN)
ex 4012.20(b) --   Other CTH, except from heading 40.11 (CAN)(JPN)]
4012.90 -  Other [CTH (JPN) (US) (NZ) (EC) (MEX)
(SEN) (NOR)]Submitted to CRO for decision (Doc.
42.627)
[CTSH (CAN)] Issue n° 13
40.13 Inner tubes, of rubber. CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 494
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
40.14 Hygienic or pharmaceutical
articles (including teats), of
vulcanised rubber other thanhard rubber, with or without
fittings of hard rubber.CTH Basket 1 (Endorsed by CRO)
40.15 Articles of apparel and
clothing accessories (including
gloves), for all purposes, of
vulcanised rubber other than
hard rubber.CTH Basket 1 (Endorsed by CRO)
40.16 Other articles of vulcanised
rubber other than hard
rubber.CTH Basket 1 (Endorsed by CRO)
40.17 Hard rubber (for example,
ebonite) in all forms, including
waste and scrap; articles ofhard rubber.As indicated at split heading level
ex 40.17(a) Slabs, blocks, plates, sheets,
strips, rods, profile shapes,
tubes, pipes and hosesCTH Basket 1 (Endorsed by CRO)
ex 40.17 (b) Waste and Scrap The origin of the goods shall be the
country in which the waste or scrap ofthis split heading is collected or derived
from manufacturing or processing
operations or from consumptionBasket 1 (Endorsed by CRO)
ex 40.17 (c) Other CTHS Basket 1 (Endorsed by CROG/RO/41
Page 495
ISSUES FOR DECISION;  CHAPTERS 41 - 43
Issue for Decision, No. 1
1. Is the de-wooling of sheep or lamb skins of subheadings 4102.21 and 4102.29 a substantial
transformation?
Differing views presented in the relevant Technical Committee discussion
Option A:
2. Removal of wool from a sheep or lamb skin with wool on is a substantial transformation
process.  The origin rule should be based on a change of subheading, namely, a change to subheadings
4102.21 or 4102.29 (skin without wool on) from  subheading 4102.10 (skin with wool on).
3. De-wooling is a complicated process.  It involved very specialized and labour-intensive
operations, during which chemical agents are used.  De-wooling enhances the quality and the value of
the skins.  A skin after de-wooling differs marked ly from the input skin that bears fleecy wool.
Option B:
4. Removal of wool from a sheep or lamb skin with wool on is not a substantial transformation
process.  The rule should be based on a change of heading, namely, a change to subheadings 4102.21
or 4102.29 (skin without wool on) from any other heading.
5. De-wooling is only one of the many preparatory operations done to prepare the skins for
subsequent tanning or finishing.  De-wooling dose not change the essential character of the skin.  Itmerely serves to clear up the surface of a skin for further processing.  De-wooling is by no means a
complicated operation although chemical agents are used.  The process does not call for any high
technique.
Relevant HS code number
6. Subheadings 4102.21 and 4102.29 (Raw skins of sheep or lambs (fresh, or salted, dried,
limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared),
whether or not with wool on or split, other than th ose excluded by Note 1 (c) to this Chapter:Without
wool on).
References
7. Report of the 3rd Session (D oc. 39.870, Annexes D1 and D2)
Report of 8th Session (Doc. 41.211, Annexes L1 and L2)
Reference document (Doc. 40.811, pages 10 -11)
Reference document (Doc. 41.384, page 4)
Reference document (Doc. 41.451, page 2)
Issue for Decision, No. 2
8. Are liming and pickling of dehaired sheep or lambs skins substantial transformation ?
Differing views presented in the relevant Technical Committee discussion
OPTION A :G/RO/41
Page 496
9. A change of subheading from 4102.29 to 4102.21 is sufficient to express the substantial
transformation.  Liming and pickling significantly change the characteristics of hides and skins.
However, salting, drying or preserving of fres h hides and skins are not substantial transformation.
Option B :
10. Liming or pickling does not change the characteristics of sheep or lambs skins.  therefore, a
change of subheading to 4102.21 except from 4102.29, or a change of subheading to 4102.29 except
from 4102.21, or a change of heading rule should be adopted.
Relevant HS code number
11. Subheadings 4102.21 and 4102.29 (Raw skins of sheep or lambs (fresh, or salted, dried,
limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared),
whether or not with wool on or split, other than th ose excluded by Note 1 (c) to this Chapter:- Without
wool on:-- pickled; other)
References
12. Report of the 3rd Session (D oc. 39.870, Annexes D1 and D2)
              Report of 8th Session (Doc. 41.211, Annexes L1 and L2)
              Reference document (Doc. 41.384, page 4)
              Reference document (Doc. 41.452, pag e 1)
Issue for Decision, No. 3
13. Is a change of heading sufficient to express the substantial transformation of the goods
assembled from parts?
Differing views presented in the relevant Technical Committee discussion
OPTION A :
14. A change of heading is sufficient to express the substantial transformation of articles
assembled from parts.  The origin rule should be based on a change to the headings concerned
(namely, headings 42.01, 42.04, 42.05 and 42.06) from any other heading.
15. Since the leather goods under examination are manufactured from raw materials or products
including component parts classified in any other heading, a change of heading should be an adequate
expression of substantial transformation of the goods.  This formulation was simple, user-frie ndly and
easy to implement.
16. However, it is acknowledged that a simple change of heading rule would not be sufficient in
all circumstances to express the origin of goods made from component parts because by virtue of the
General Rule of Interpretation 2(a), component parts of a good presented unassembled or
disassembled may be classified in the same heading as the assembled good.  To solve this problem, a
general rule should be structured.
OPTION B :
17. A change of heading is not sufficient to express the substantial transformation of articles
assembled from parts.  The origin rule should be based on a change to the headings concernedG/RO/41
Page 497
(namely, headings 42.01, 42.04, 42.05 and 42.06) from any other heading, provided the goods are knit
to shape or fully assembled in one country.
18. To offset the effect of the General Rule of Interpretation 2(a) which classifies a product and
its parts presented as unassembled or disassembled in the same heading, this rule should be read in
conjunction with the following proposed Chapter Legal Note: "Those rules which refer to a change of
heading or subheading shall not apply to changes which result solely from the application of the
General Rule of Interpretation 2(a)".
Relevant HS code number
19. Headings 42,01 (Saddlery and harness for any an imal (including traces, leads, knee pads,
muzzles, saddle cloths, saddle bags, dog coats and the like), of any material), 42.04 (Articles of
leather or of composition leather, of a kind used in machinery or mechanical appliances or for other
technical uses), 42.05 (Other articles of leather or of composition leather) and 42.06 (Articles of gut
(other than silk-worm gut), of goldbeat er's skin, of bladders or of tendons).
References
20. Report of the 3rd Session (D oc. 39.870, Annexes D1 and D2)
Report of the 8th Session (Doc. 41.211, Annexes L1 and L2)
Reference document (Doc. 39.861, Annex F/12)
Issue for Decision, No. 4
21. Is it a substantial transformation to assemble furskins from pieces, cuttings or other
unassembled parts of furskins?
Differing views presented in the relevant Technical Committee discussion
OPTION A:
22. Assembling of pieces, cuttings or other unassembled parts of furskins into a large furskin is a
substantial transformation.  The rule of origin should be based on a change to the subheading
concerned (namely, subheading 4302.30) from any other subheading.
OPTION B:
23. Assembling of pieces, cuttings or other unassemb led parts of furskins into a large furskin is
not a substantial transformation.  The rule of origin should be based on a change to the subheading
concerned (namely, subheading 4302.30) from any other heading.
Other considerations
24. The Technical Committee could broadly agree to adopting a change of subheading rule for
subheading 4302.30 to express that the assembly of furskins from pieces, cuttings or unassembledparts of furskins is origin-conferring.
25. However one delegation maintained its proposal for a change of heading rule so as to seek
further instructions from its home administration before it could join the consensus.G/RO/41
Page 498
Relevant HS code number
26. Subheading 4302.30 (Tanned or dressed furskins (including heads, tails, paws and other
pieces or cuttings), unassembled, or assembled (without the addition of other materials) other than
those of heading No. 43.03: Whole skins and pieces or cuttings thereof, assembled)
References
27. Report of the 3rd Session (D oc. 39.870, Annexes D1 and D2)
Report of the 8th Session (Doc. 41.211, Annexes L1 and L2)
Reference document (Doc. 41.424, page 38).
ISSUE FOR DECISION, NO. 5
28. Change to the tanned leather of heading 41.04, 41.05, 41.06 or 41.07 from other products of
the same heading.
Differing views presented in the relevant Technical Committee discussion
OPTION A
29. A change to tanned leather from leather provisionally prepared constitutes a substantial
transformation.  The starting products may have been lightly tanned but the tanning effect is
temporary and reversible.  A tanned leather on the other hand is a product that has undergone a
complete course of tanning.  The tanning effect is permanent.  Leather fully tanned and leatherprovisionally prepared are two different products and the change to tanned leather from the latter is
considered origin-conferring.  The origin rule formulation of CTHS (change of split heading) is
appropriate for tanned leather put under split headings: ex 41.04 (b), ex 41.05(b), ex 41.06(b) and
ex 41.07(b).
OPTION B
30. The origin of tanned leather (of 41.04 through 41.07) should be traced back to the origin of
the animals.  A change to tanned leather from raw hides or skins (classified in heading 41.01, 41.02 or
41.03) cannot be regarded as a substantial transformation, not to mention the change to tanned leather
of a heading among headings 41.04 through 41.07 from provisionally prepared leather of the sameheading.  There is not much difference between the input products (raw hides or skins) and resulting
product (tanned leather).  The origin rule formulati on for tanned leather should be drafted as follows:
- for tanned leather of ex41.04(b): CTH, except from heading 41.01
- for tanned leather of ex41.05(b): CTH, except from heading 41.02
- for tanned leather of ex41.06(b): CTH, except from heading 41.03
- for tanned leather of ex41.07(b): CTH, except from heading 41.03
Relevant HS code number
31. Heading 41.04: leather of bovine or equine animals, without hair on, other than leather of
heading No. 41.08 or 41.09.
Heading 41.05: sheep or lamb skin leather, wit hout wool on, other than leather of heading No.
41.08 or 41.09.G/RO/41
Page 499
Heading 41.06: goat or kid skin leather, without hair on, other than leather of heading
No. 41.08 or 41.09.
Heading 41.07: leather of other animals, without hair on, other than leather of heading
No. 41.08 or 41.09.
References
32. Report of the 3rd Session (D oc. 39.870, Annexes D1 and D2)
Report of 8th Session (Doc. 41.211, Annexes L1 and L2)
Reference document (Doc. 41.251, pages 1 to 2)
Reference document (Doc. 41.421)
Reference document (Doc. 41.451, pages 1 to 5)Reference document (Doc. 41.452)
ISSUE FOR DECISION, NO. 633. Change to the retanned leather of heading 41.04, 41.05, 41.06 or 41.07 from other products of
the same heading.
Differing views presented in the relevant Technical Committee discussion
OPTION A
34. Retanned leather differs considerably from its input products (e.g., leather provisionally
prepared, tanned leather).  After being retanned, the quality and properties of the final product are
much improved.  Hence, a change to retanned leather from the input products is deemed to be a
substantial transformation.  Since both the retanned leather and the input products are classified in the
same heading, a “CTHS” is an appropriate origin rule formulation to cover retanned leather of split
headings of ex 41.04(c), ex 41.05(c), ex 41.06(c) and ex 41.07(c).
OPTION B
35. Option B differs from Option A in that it does not recognize retanning of tanned leather to be
origin-conferring.  The retanning merely reinforced the effect of the tanning operation done to thegoods.  A change to retanned leather from tanned leather does not constitute a substantial
transformation.  However, a substantial transformation is deemed to take place if the input product for
retanned leather is drawn from leather provisionally pr epared.  The origin rule formulations as follows
are considered appropriate for retanned leather:
for retanned leather of ex 41.04(c): CTHS, except from split heading ex 41.04(b)
for retanned leather of ex 41.05(c): CTHS, except from split heading ex 41.05(b)
for retanned leather of ex 41.06(c): CTHS, except from split heading ex 41.06(b)for retanned leather of ex 41.07(c): CTHS, except from split heading ex 41.07(b)
OPTION C
36. The origin of retanned leather should be traced back to that of the raw hides and skins
(heading 41.01, 41.02 or 41.03, as appropriate).  A change to retanned leather from these raw hides or
skins constitutes a substantial transformation.  However, a change to retanned leather of a heading
from any other products (e.g., tanned leather, provisionally prepared leather) of the same heading does
not cause any substantial transformation to the products and is not origin-conferring.  “CTH” is anG/RO/41
Page 500
appropriate origin rule formulation for retanned leather of split headings ex 41.04(c), ex 41.05(c), ex
41.06(c) and ex 41.07(c).
Relevant HS code number
37. See paragraphs 24.
References
38. See paragraph 25.
ISSUE FOR DECISION, NO. 7
39. Change to the finished leather of heading 41.04, 41.05, 41.06 or 41.07 from other
products of the same heading.
Differing views presented in the relevant Technical Committee discussion
40. "After tanning, ... the leather may then be furt her dressed or finished by dyeing, graining, or
stamping to imitate skins of other kinds, sizing, polishing, grinding (or buffing) ... to give suede or
velveted finish, waxing, blacking, smoothing (glazing), satin finishing, printing, etc." (HS
Explanatory Note, page 650)
41. The Technical Committee has come up with 5 possible ways to articulate the origin rule for
finished leather.
OPTION A
42. The origin rule formulation should be based on a “CTH”.  This means that the input products
for finished leather (of headings 41.04 to 41.07) need to be traced back to the related raw hides orskins (of headings 41.01 to 41.03).  A change to finished leather of headings 41.04 to 41.07 from any
other products (i.e. tanned leather, leather provisionally prepared) classified in the same heading does
not constitute a substantial transformation.
OPTION B
43. The production of finished leather (of headings 41.04 to 41.07) from tanned, retanned or
provisionally prepared leather entails sufficient characteristic change to the resulting products.  It is
therefore origin-conferring.  The “CTHS” should be  an appropriate origin rule formulation for the
finished leather of split headings ex41.04(d), ex41.05(d), ex41.06(d) and ex41.07(d).
OPTION C
44. The change to finished leather (of headings 41.04 to 41.07) from tanned or provisionally
prepared leather of the same heading is considered substantial and origin-conferring.  However, a
change to finished leather from retanned leather does not involve much modification to the input
product.  Substantial transformation therefore is not deemed to have taken place.  The origin rules for
the finished leather of heading 41.04 to 41.07 should be formulated as:
- for finished leather of ex41.04(d): CTHS, except from split heading 41.04(c)
- for finished leather of ex41.05(d): CTHS, except from split heading 41.05(c)
- for finished leather of ex41.06(d): CTHS, except from split heading 41.06(c)
- for finished leather of ex41.07(d): CTHS, except from split heading 41.07(c)G/RO/41
Page 501
OPTION D
45. The origin can be conferred to finished leather (of headings 41.04 to 41.07) manufactured
from the provisionally prepared leather of the same heading concerned.  However, the production of
finished leather from tanned or retanned does not involve much characteristic change to the input
products.  Accordingly, the following origin ru le formulations are considered appropriate:
- for finished leather of ex 41.04(d): CTHS, except from split heading ex 41.04(b)
or 41.04(c)
- for finished leather of ex 41.05(d): CTHS, except from split heading ex 41.05(b)
or 41.05(c)
- for finished leather of ex 41.06(d): CTHS, except from split heading ex 41.06(b)
or 41.06(c)
- for finished leather of ex 41.07(d): CTHS, except from split heading ex 41.07(b)
or 41.07(c)
OPTION E
46. Some finishing processes as set out in paragraph 15 may be too minimal to affect the leather
while others render significant changes to the perfor mance of the resulting leather.  To recognize the
substantial transformation brought about by certain finishing processes to the leather, the origin rulefor products under ex41.04(d), ex41.05(d), ex41.06(d) and ex41.07(d) should be formulated along the
line of “change within split heading” as follows:
- for finished leather of ex41.04(d): Change within split heading ex 41.04(d)
- for finished leather of ex41.05(d): Change within split heading ex 41.05(d)
- for finished leather of ex41.06(d): Change within split heading ex 41.06(d)- for finished leather of ex41.07(d): Change within split heading ex 41.07(d)
Relevant HS code number
47. See paragraphs 24.
References
48. See paragraph 25.
ISSUE FOR DECISION, NO. 8
49. Change to the parchment dressed (whether or not further prepared) leather of heading 41.04,
41.05, 41.06 or 41.07 from other products of the same heading.
Differing views presented in the relevant Technical Committee discussion
50. "Parchment-dressed leather is prepared from raw hides or skins, not by a process of tanning,
but by treating the raw hides and skins to ensure their preservation.  These are softened, dehaired,
defleshed, washed and then stretched on a frame, coated with a paste containing whiting and soda orslaked lime, shaved to reduce them to the desired thickness and ground with pumice.  Finally, they
may be dressed with gelatin and starch." (HS Explanatory Note, page 650)G/RO/41
Page 502
OPTION A
51. The parchment dressed leather is remarkably different from its input material of raw hides or
skins in all respects.  A change to parchment dressed leather from raw hides or skins therefore
constitutes a substantial transformation.  The “CTH” formulation should be adopted as the origin rule
for parchment dressed leather of split headings ex 41.04 (e), ex 41.05(e), ex 41.06(e) and ex 41.07(e)
OPTION B
52. The change to parchment dressed leather of heading 41.04, 41.05, 41.06 or 41.07 from other
products (i.e. provisionally prepared leather) of the same heading is considered a substantial
transformation because there is much difference between the input and the resulting products.  The
origin rule formulation for the parchment dressed leather under split headings ex 41.04(e), ex
41.05(e), ex 41.06(e) and ex 41.07(e) should be based on “CTHS”, namely, a change to these splitsfrom any other split of the same heading confers origin.
OPTION C
53. A change to parchment dressed leather from provisionally prepared or tanned leather is
considered to be a substantial transformation and confers origin.  However, a change to parchmentdressed leather from retanned or finished leather should not be so treated.  Consequently, the origin
rule for parchment dressed leather should be formulated as follows:
- for parchment dressed leather of ex 41.04(e): CTHS, except from heading ex
41.04(c) or 41.04(d)
- for parchment dressed leather of ex 41.05(e): CTHS, except from heading ex
41.05(c) or 41.05(d)
- for parchment dressed leather of ex 41.06(e): CTHS, except from heading ex
41.06(c) or 41.06(d)
- for parchment dressed leather of ex 41.07(e): CTHS, except from heading ex
41.07(c) or 41.07(d)
Relevant HS code number
54. See paragraphs 24.
References
55. See paragraph 25.
ISSUE NO. 9: OBTAINING PRODUCTS OF SUBHEADING 42.02 (TRUNK SUITCASES,
BRIEF CASES, TRAVELLING BAGS, HANDBAGS, SHOPPING BAGS, WALLETS, ETC.)
FROM PRODUCTS OF OTHER HEADINGS
Options: Issue No. 45 for textiles (Chapters 61 and 62) refers.
Relevant HS Codes: 42.02
ISSUE NO. 10: OBTAINING ARTICLES OF APPAREL AND CLOTHING ACCESSORIES
CLASSIFIED IN 42.03 AND 43.03 FROM PRODUCTS OF OTHER HEADINGS
Options: Issue No. 46 for textiles (Chapters 61 and 62) refers.G/RO/41
Page 503
Relevant HS Codes: 42.03, 43.03
ISSUE NO. 11 HEADING 43.04 COVERS (A) ARTI FICIAL FUR APPAREL, (B) ARTICLES OF
ARTIFICIAL FUR , AND (C) ARTIFICIAL FUR.  OBTAINING (A) ARTIFICIAL FUR APPAREL
FROM PRODUCTS OF (B) OR (C)
Options: Issue No. 46 for textiles (Chapters 61 and 62) refers.
Relevant HS Codes: ex 43.04 (a)
ISSUE NO. 12 HEADING 43.04 COVERS (A) ARTI FICIAL FUR APPAREL, (B) ARTICLES OF
ARTIFICIAL FUR , AND (C) ARTIFICIAL FUR.  OBTAINING (B) ARTICLES OF ARTIFICIAL
FUR FROM (C) ARTIFICIAL FUR
Options: Issue No. 46 for textiles (Chapters 61 and 62) refers.
Relevant HS Codes: ex 43.04 (b)G/RO/41
Page 504
CHAPTER 41
Chapter Notes:
1. Definition of provisionally prepared leather       Basket 1
Provisionally prepared leather is a leather that has not yet undergone an irreversible tanning process but may have been treate d with tanning agents
so that it becomes less susceptible to putrefaction and better prepared for subsequent tanning.
2. Definition of tanned leather       Basket 1
Tanned leather is a leather that has been converted permanently or irreversibly from hides or skins by the application of tanni ng agents, which may
be mineral or vegetable or both.  Tanned leather includes chrome tanned (wet blue) and vegetable tanned leather.
3. Definition of retanned leather      Basket 1
Retanned leather is a tanned leather that has been further treated with tanning agents.  Re-tanned leather includes chrome tann ed (wet blue) leather
that has been further tanned with mineral, vegetable or synthetic agents to improve the leather.
4. Definition of finished leather       Basket 1
Finished leather is a tanned leather, which may or may not have been retanned, but which has been subjected to further processi ng to affect, for
example, the softness, permeability, colour, appearance, surface texture or firmness of the leather.  Such processes may includ e dyeing, drying,
buffing, glazing, embossing, coating or varnishing.
5. Definition of parchment-dressed leather       Basket 1
Parchment-dressed leather is prepared from raw hides or skins, not by a process of tanning, but by treating the raw hides and s kins to ensure their
preservation.  These are softened, dehaired, defleshed, washed a nd then stretched on a frame, coated with a paste containing wh iting and soda or slaked
lime, shaved to reduce them to the desired thickness and ground with pumice.  Finally, they may be dressed with gelatin and sta rch.G/RO/41
Page 505CHAPTER 41
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 41 Raw hides and skins (other
than furskins) and leather
41.01 Raw hides and skins of bovine
or equine animals (fresh, or
salted, dried, limed, pickled or
otherwise preserved, but not
tanned, parchment-dressed or
further prepared), whether ornot dehaired or split.CTH Basket 1 (Endorsed by CRO)
4101.10 -  Whole hides and skins of
bovine animals, of a weight per
skin not exceeding 8 kg whensimply dried, 10 kg when dry-
salted or 14 kg when fresh, wet-
salted or otherwise preservedAs indicated at the heading level.
-  Other hides and skins of
bovine animals, fresh or wet-
salted:
4101.21 -- Whole
4101.22 -- Butts and bends
4101.29 -- Other
4101.30 -  Other hides and skins of
bovine animals, otherwise
preserved
4101.40 -  Hides and skins of equine
animalsG/RO/41
Page 506
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
41.02 Raw skins of sheep or lambs
(fresh, or salted, dried, limed,
pickled or otherwisepreserved, but not tanned,
parchment-dressed or further
prepared), whether or not
with wool on or split, other
than those excluded by Note 1(c) to this Chapter.As indicated at the subheading level.
4102.10 - With wool on CTH Basket 1  (Endorsed by CRO)
- Without wool on
4102.21 -- Pickled [CTH]
[CTSH]Submitted to CRO for decision
(Doc. 41.612)
[CTSH, except from subheading4102.29] CRO endorsed as follows: “CTH”
(Doc. G/RO/W/22/Rev.2)
4102.29 --  Other [CTH]
[CTSH]Submitted to CRO for decision
(Doc. 41.612)
[CTSH, except from subheading
4102.21]CRO endorsed as follows: “CTH”
(Doc. G/RO/W/22/Rev.2)
41.03 Other raw hides and skins
(fresh, or salted, dried, limed,
pickled or otherwisepreserved, but not tanned,
parchment-dressed or further
prepared), whether or not
dehaired or split, other than
those excluded by Note 1 (b)or 1 (c) to this Chapter.CTH Basket 1 (Endorsed by CRO)
4103.10 - Of goats or kids As indicated at the heading level.
4103.20 - Of reptilesG/RO/41
Page 507HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4103.90 - Other As indicated at the heading level.
41.04 Leather of bovine or equine
animals, without hair on,
other than leather of heading
No. 41.08 or 41.09.As indicated at the split heading level.
ex 41.04 (a) -  Provisionally prepared CTH, except from heading 41.01 Chapter
Note 1Basket 1 (Endorsed by CRO)
ex 41.04 (b) -  Tanned [CTHS]
[CTH, except from heading 41.01]Chapter
Note 2Submitted to CRO for decision
(Doc. 41.737, Issue 1 and Annex to
Doc. 42.268)
ex 41.04 (c) -  Retanned [CTH][CTHS]
[CTHS, except from split headingex41.04(b)]Chapter
Note 3Submitted to CRO for decision
(Doc. 41.737, Issue 2, Doc.
41.737/Cor and Annex to Doc.42.268)
ex41.04 (d) -  Finished [CTH][CTHS]
[CTHS, except from split heading
ex41.04(c)]
[CTHS, except from split heading
ex41.04(b) or ex41.04(c)]
[Change within split heading ex
41.04(d)]Chapter
Note 4Submitted to CRO for decision
(Doc. 41.737, Issue 3 and Annex to
Doc. 42.268)
ex41.04 (e) - Parchment dressed, whether or
not further prepared[CTH]
[CTHS][CTHS, except from split heading ex
4104(b), ex 41.04(c) or ex 41.04(d)]Chapter
Note 5Submitted to CRO for decision
(Doc. 41.737, Issue 4 and Annex toDoc. 42.268)
4104.10 -  Whole bovine skin leather, of
a unit surface area not exceeding
28 square feet (2.6 m2)As indicated at the split heading level.G/RO/41
Page 508
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
-  Other bovine leather and
equine leather, tanned or
retanned but not furtherprepared, whether or not split:As indicated at the heading level.
4104.21 -- Bovine leather, vegetable pre-
tanned
4104.22 -- Bovine leather, otherwise pre-
tanned
4104.29 -- Other
- Other bovine leather andequine leather, parchment-
dressed or prepared after
tanning:
4104.31 -- Full grains and full grain
splits
4104.39 -- Other
41.05 Sheep or lamb skin leather,
without wool on, other than
leather of heading No. 41.08 or
41.09.As indicated at the split heading level.
ex 41.05 (a) -  Provisionally prepared CTH, except from heading 41.02 Chapter
Note 1Basket 1 (Endorsed by CRO)
ex 41.05 (b) -  Tanned [CTHS]
[CTH, except from heading 41.02]Chapter
Note 2Submitted to CRO for decision
(Doc. 41.737, Issue 1 and Annex to
Doc. 42.268)
ex 41.05 (c) -  Retanned [CTH]
[CTHS]
[CTHS, except from split heading
ex41.05(b)]Chapter
Note 3Submitted to CRO for decision
(Doc. 41.737, Issue 2 Doc .41.737/Cor
and Annex to Doc. 42.268)G/RO/41
Page 509HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex 41.05 (d) -  Finished [CTH]
[CTHS]
[CTHS, except from split headingex41.05(c)]
[CTHS, except from split heading
ex41.05(b) or ex41.05(c)]
[Change within split heading ex
41.05(d)]Chapter
Note 4Submitted to CRO for decision
(Doc. 41.737, Issue 3 and Annex to
Doc. 42.268)
ex 41.05 (e) - Parchment dressed, whether or
not further prepared[CTH][CTHS][CTHS, except from split heading ex
41.05(b), ex 41.05(c) or ex 41.05(d)]Chapter
Note 5Submitted to CRO for decision
(Doc. 41.737, Issue 4  and Annex toDoc. 42.268)
Tanned or retanned but notfurther prepared, whether or notsplit:As indicated at the split heading level.
4105.11 --Vegetable pre-tanned
4105.12 -- Otherwise pre-tanned
4105.19 -- Other
4105.20 - Parchment-dressed or prepared
after tanning
41.06 Goat or kid skin leather,
without hair on, other than
leather of heading No. 41.08 or
41.09.As indicated at the split heading level.
ex 41.06 (a) -  Provisionally prepared CTH, except from heading 41.03 Chapter
Note 1Basket 1 (Endorsed by CRO)
ex 41.06 (b) -  Tanned [CTHS]
[CTH, except from heading 41.03]Chapter
Note 2Submitted to CRO for decision
(Doc. 41.737, Issue 1 and Annex to
Doc. 42.268)G/RO/41
Page 510
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex 41.06 (c) -  Retanned [CTH]
[CTHS]
[CTHS, except from split headingex41.06(b)]Chapter
Note 3Submitted to CRO for decision
(Doc. 41.737, Issue 2, Doc.
41.737/Cor and Annex to Doc.
42.268)
ex 41.06 (d) -  Finished [CTH]
[CTHS]
[CTHS, except from split heading
ex41.06(c)]
[CTHS, except from split headingex41.06(b) or ex41.06(c)]
[Change within split heading ex
41.06(d)]Chapter
Note 4Submitted to CRO for decision
(Doc. 41.737, Issue 3 and Annex to
Doc. 42.268)
ex 41.06 (e) - Parchment dressed, whether or
not further prepared[CTH][CTHS]
[CTHS, except from split heading ex
41.06(b), ex 41.06(c) or ex 41.06(d)]Chapter
Note 5Submitted to CRO for decision
(Doc. 41.737, Issue 4 and Annex to
Doc. 42.268)
- Tanned or retanned butnot further prepared, whether or
not split :As indicated at the split heading level.
4106.11 --    Vegetable pre-tanned
4106.12 --    Otherwise pre-tanned
4106.19 --    Other
4106.20 - Parchment-dressed or
prepared after tanning
41.07 Leather of other animals,
without hair on, other than
leather of heading No. 41.08 or
41.09.As indicated at the split heading level.
ex 41.07(a) -  Provisionally prepared CTH, except from heading 41.03 Chapter
Note 1Basket 1 (Endorsed by CRO)G/RO/41
Page 511HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex 41.07(b) -  Tanned [CTHS]
[CTH, except from heading 41.03]Chapter
Note 2Submitted to CRO for decision
(Doc. 41.737, Issue 1 and Annex to
Doc. 42.268)
ex 41.07(c) -  Retanned [CTH][CTHS][CTHS, except from split heading
ex41.07(b)]Chapter
Note 3Submitted to CRO for decision
(Doc. 41.737, Issue 2, Doc.
41.737/Cor and Annex to Doc. 42.268)
ex 41.07(d) -  Finished [CTH]
[CTHS]
[CTHS, except from split heading
ex41.07(c)]
[CTHS, except from split heading
ex41.07(b) or ex41.07(c)]
[Change within split heading ex41.07(d)]Chapter
Note 4Submitted to CRO for decision
(Doc. 41.737, Issue 3 and Annex to
Doc. 42.268)
ex 41.07(e) - Parchment dressed, whether or
not further prepared[CTH]
[CTHS]
[CTHS, except from split heading ex
41.07(b), ex 41.07(c), or ex 41.07(d)]Chapter
Note 5Submitted to CRO for decision
(Doc. 41.737, Issue 4 and Annex to
Doc. 42.268)
4107.10 -  Of swine As indicated at the split heading level.
-  Of reptiles :
4107.21 --  Vegetable pre-tanned
4107.29 -- Other
4107.90 - Of other animals
41.08 Chamois (including
combination chamois) leather.CTH Basket 1 (Endorsed by CRO)
41.09 Patent leather and patent
laminated leather; metallisedleatherCTH Basket 1  (Endorsed by CRO)G/RO/41
Page 512
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
41.10 Parings and other waste of
leather or of composition
leather, not suitable for themanufacture of leather
articles; leather dust, powder
and flour.The country of origin of the good shall
be the country in which the good of this
heading is derived.Basket 1 (Endorsed by CRO)
41.11 Composition leather with a
basis of leather or leather
fibre, in slabs, sheets or strip,
whether or not in rolls.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 513CHAPTER 42
Chapter Notes
[1. Minor processing operations not affecting origin.    Submitted to CRO for decision (Doc.OC0023, Issue No.74)
For the purposes of determining the country of origin for goods falling within Section XI that are not wholly obtained in one c ountry, the following
individual processes, considered singly, are minimal operations and shall not affect the origin of the goods concerned, whether  or not such
processes result in changes of classification:
a) Working or finishing one or more edges by hemming, rolling, whipping or similar means or by knotting fringe;
b) Cutting fabrics, yarns or other materials; or separating goods produced in the finished state by cutting along dividing threa ds;
c) Assembling or joining goods by sewing or stitching fo r convenience of shipment or other temporary purposes;  or
d) Putting up goods for retail sale or in sets or ensembles. (US)]
2.  For the purposes of this chapter, those rules which refer to  a change of heading or subheading shall not apply to changes w hich result from
disassembly  (Basket 11)
[3.  Those rules which refer to a change of heading or subheadin g shall not apply to changes which result solely from the appli cation of General Rule of
Interpretation 2 (a) with respect to collection of parts that are presented as unassembled articles of another heading or subhe ading. (US)]
Submitted to CRO for decision (Doc.OC0031, Issue No.4; Doc.OC0029)
[4.  The term “complete making-up” means that all the operations following cutting have to be performed.  However, making-up sh all not necessarily
be considered as incomplete where one or more finishing operations have not been carried out.
The following is a list of examples of finishing operations:- fitting of buttons and/or other types of fastenings;
- making of button-holes;- finishing off the ends of trouser legs and sleeves or the bottom hemming of skirts and dresses;
                                                     
1 During the “coherence” phase, the possibility will be examined of  placing this Note at Appendix level, possibly with a referen ce to the Chapters to which it applies.G/RO/41
Page 514
- fitting of trimmings and accessories such as pockets, labels, badges, etc.;
- ironing and other preparations of garments for sale “ready made”. (EC)]    Submitted to CRO for decision (Doc.42.271, Issue No.55)
[Product Specific] [Chapter] Residual Rule      Subm itted to CRO for decision (Doc.OC0023E2, Issue No.77)
[When application of the primary rules of this chapter (includi ng the product specific rules provided in the matrix) does not r esult in a
determination of a country of origin, the country of origin shall be determined as follows:
1. The country of origin of a good of heading 42.02 or 42.03 that wa s assembled from parts, but was not wholly assembled in a si ngle country, is the
country in which the most significant assembly operations were performed in the making-up of the good, without regard to the ad dition of buttons and other
fasteners, belt and hanger loops, belts, patch pockets, labels, foot straps, epaulettes, ornaments and other minor components. (US)]
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 42 Articles of leather; saddlery
and harness; travel goods,
handbags and similar
containers; articles of animal
gut (other than silk-worm
gut).
42.01 Saddlery and harness for any
animal (including traces,
leads, knees pads, muzzles,
saddle clothes, saddle bags,dog coats and the like), of any
material.[CTH]
[CTH, provided the goods are knit to
shape or fully assembled in one country]Submitted to CRO for decision
(Doc. 41.612)
CRO endorsed as follows: CTH
(Doc. G/RO/W/22/Rev. 2)G/RO/41
Page 515HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
42.02 Trunks, suit-cases, vanity-
cases, executive-cases, brief-
cases, school satchels,spectacle cases, binocular
cases, camera cases, musical
instrument cases, gun cases,
holsters and similar
containers; travelling-bags,toilet bags, rucksacks,
handbags, shopping-bags,
wallets, purses, map-cases,
cigarette-cases, tobacco-
pouches, tool bags, sportsbags, bottle-cases, jewellery
boxes, powder-boxes, cutlery
cases and similar containers,
of leather or of composition
leather, of sheeting of plastics,of textile materials, of
vulcanised fibre or of
paperboard, or wholly or
mainly covered with such
materials or with paper.[CTH]
[CTH, provided the goods are knit to
shape or fully assembled in one country;Additional Rule:
Goods of this heading which werewholly obtained from a collection of
parts, which collection was classifiable
as an unassembled good by virtue ofGeneral Interpretative Rule 2(a), are
deemed to have originated in the country
where the goods were wholly assembled.
(US)](Issues 45 and 46 in Doc. 42.271,
already submitted to the CRO,
apply)
Trunks, suit-cases, vanity-cases,executive -cases, brief-cases,
school satchels and similar
containers:As indicated at the heading level
4202.11 -- With outer surface of leather,
of composition leather or ofpatent leather
4202.12 With outer surface of plastics or
of textile materialsG/RO/41
Page 516
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4202.19 -- Other As indicated at the heading level
- Handbags, whether or not with
shoulder strap, including those
without handle:
4202.21 -- With outer surface of leather,
of composition leather or of
patent leather
4202.22 -- With outer surface of plastic
sheeting or of textile materials
4202.29 -- Other
- Articles of a kind normallycarried in the pocket or in the
handbag;
4202.31 -- With outer surface of leather,
of composition leather or ofpatent leather
4203.32 -- With outer surface of plastic
sheeting or of textile materials
4202.39 -- Other
- Other
4202.91 -- With outer surface of leather,
of composition leather or ofpatent leather
4202.92 -- With outer surface of plastic
sheeting or of textile materials
4202.99 -- OtherG/RO/41
Page 517HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
42.03 Articles of apparel and
clothing accessories, of leather
or of composition leather.[CTH]
[CTH, provided the goods are knit to
shape or fully assembled in one country;Additional Rule:
Goods of this heading which werewholly obtained from a collection of
parts, which collection was classifiable
as an unassembled good by virtue ofGeneral Interpretative Rule 2(a), are
deemed to have originated in the country
where the goods were wholly
assembled.(US)]
Another option indicated at the splitheading level(Issues 45 and 46 in Doc. 42.271,
already submitted to the CRO,
apply)
ex42.03(a) Articles of apparel, of leather or
of composition leather[Complete making-up (EC)]
ex42.03(b) Other [CTH (EC)]
4203.10 - Articles of apparel As indicated at the heading or split
heading level
- Gloves, mitten and mitts:
4203.21 -- Specially designed for use in
sports
4203.29 -- Other
4203.30 - Belts and bandoliers
3203.40 - Other clothing accessories
42.04 Articles of leather or of
composition leather, of a kind
used in machinery or
mechanical appliances or for
other technical uses.[CTH]
[CTH, provided the goods are knit to
shape or fully assembled in one country]Submitted to CRO for decision
(Doc. 41.612)
CRO endorsed as follows: CTH
(Doc. G/RO/W/22/Rev. 2)G/RO/41
Page 518
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
42.05 Other articles of leather or of
composition leather.[CTH]
[CTH, provided the goods are knit to
shape or fully assembled in one country]Submitted to CRO for decision
(Doc. 41.612)
CRO endorsed as follows: CTH
(Doc. G/RO/W/22/Rev. 2)
42.06 Articles of gut (other than silk-
worm gut), of goldbeater's
skin, of bladders or of tendons.[CTH]
[CTH, provided the goods are knit to
shape or fully assembled in one country]Submitted to CRO for decision
(Doc. 41.612)
CRO endorsed as follows: CTH
(Doc. G/RO/W/22/Rev. 2)
4206.10 - Catgut As indicated at the heading level
4206.90 - OtherG/RO/41
Page 519CHAPTER 43
Chapter Notes
[1. Minor processing operations not affecting origin.    Submitted to CRO for decision (Doc.OC0023, Issue No.74)
For the purposes of determining the country of origin for goods falling within Section XI  that are not wholly obtained in one country, the following
individual processes, considered singly, are minimal operations and shall not affect the origin of the goods concerned, whether  or not such
processes result in changes of classification:
a) Working or finishing one or more edges by hemming, rolling, whipping or similar means or by knotting fringe;
b) Cutting fabrics, yarns or other materials; or separating goods produced in the finished state by cutting along dividing thre ads or lines;
c) Assembling or joining goods by sewing, or stitching fo r convenience of shipment or other temporary purposes; or
d) Putting up goods for retail sale or in sets or ensembles. (US)]
2. For the purposes of headings 43.03 and 43.04, those rules which refer to a change of heading or subheading shall not apply t o changes which result
from disassembly   Basket 12
[3. Those rules which refer to a change of heading or subheading shall not apply to changes which result solely from the applic ation of General Rule of
Interpretation 2(a) with respect to collection of parts that are presented as unassembled articles of another heading or subhea ding. (US)]
Submitted to CRO for decision (Doc.OC0031, Issue No.4; Doc.OC0029)
[4. The term “complete making-up” means that all the operations following cutting have to be performed.  However, making-up sha ll not necessarily
be considered as incomplete where one or more finishing operations have not been carried out.
The following is a list of examples of finishing operations:- fitting of buttons and/or other types of fastenings;
- making of button-holes;
                                                     
2 During the “coherence” phase, the possibility will be examined of  placing this Note at Appendix level, possibly with a referen ce to the Chapters to which it applies.G/RO/41
Page 520
- finishing off the ends of trouser legs and sleeves or the bottom hemming of skirts and dresses;
- fitting of trimmings and accessories such as pockets, labels, badges, etc.;
- ironing and other preparations of garments for sale “ready made”. (EC)]    Submitted to CRO for decision (Doc.42.271, Issue No.55)
[Product Specific] [Chapter] Residual Rule      Subm itted to CRO for decision (Doc.OC0023E2, Issue No.77)
[When application of the primary rules of this chapter (includi ng the product specific rules provided in the matrix) does not r esult in a
determination of a country of origin, the country of origin shall be determined as follows:
1. The country of origin of goods of heading 43.03 that was assembled from parts, but was not wholly assembled in a single count ry, is the country in
which the most significant assembly operations were performed in the making-up of the good, without regard to the addition of b uttons and other fasteners,
belt and hanger loops, belts, patch pockets, labels, foot st raps, epaulettes, ornaments and other minor components. (US)]
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 43 Furskins and artificial fur;
manufactures thereof
43.01 Raw furskins (including
heads, tails, paws and other
pieces or cuttings, suitable for
furriers' use), other than raw
hides and skins of heading No.
41.01, 41.02 or 41.03.CTH Basket 1 (Endorsed by CRO)
4301.10 -  Of mink, whole, with or
without head, tail or pawsAs indicated at the heading level
4301.20 -  Of rabbit or hare, whole, with
or without head tail or paws
4301.30 -  Of lamb, the following:
Astrakhan, Broadtail, Caracul,
Persian and similar lamb,
Indian, Chinese, Mongolian or
Tibetan lamb, whole, with or
without head, tail or pawsG/RO/41
Page 521HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4301.40 -  Of beaver, whole, with or
without head, tail or pawsAs indicated at the heading level
4301.50 -  Of musk-rat, whole, with or
without, tail or paws
4301.60 -  Of fox, whole, with or without
head, tail or paws
4301.70 -  Of seal, whole, with or
without head, tail or paws
4301.80 -  Other furskins, whole, with or
without head, tail or paws
4301.90 -  Heads, tails, paws and other
pieces or cuttings, suitable for
furriers’ use
43.02 Tanned or dressed furskins
(including heads, tails, pawsand other pieces or cuttings),
unassembled, or assembled
(without the addition of other
materials) other than those of
heading No. 43.03.As indicated at the subheading level
-  Whole skins, with or without
head, tail or paws, not
assembled:
4302.11 -- Of mink CTH Basket 1 (Endorsed by CRO)
4302.12 -- Of rabbit CTH Basket 1 (Endorsed by CRO)
4302.13 -- Of lamb, the following:
Astrakhan, Broadtail, Caracul,Persian and simile lamb, Indian,
Chinese, Mongolian or Tibetan
lambCTH Basket 1 (Endorsed by CRO)
4302.19 -- Other CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 522
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4302.20 -  Heads, tails, paws and other
pieces or cuttings, not assembledCTH Basket 1 (Endorsed by CRO)
4302.30 - Whole skins and pieces
or cuttings thereof, assembled[CTH]
[CTSH]Submitted to CRO for decision
(Doc. 41.612)
CRO endorsed as follows: CTSH
(Doc. G/RO/W/22/Rev. 2)
43.03 Articles of apparel, clothing
accessories and other articles
of furskin.[CTH]
[CTH, provide the goods are fully
assembled in one country;
Additional Rule:
Goods of this heading which werewholly obtained from a collection ofparts, which collection was classifiable
as an unassembled good by virtue of
General Interpretative Rule 2(a), are
deemed to have originated in the country
where the goods were wholly assembled.(US)]
Another option indicated at the split
heading level(Issues 45 and 46 in Doc. 42.271,
already submitted to the CRO,
apply)
ex43.03 (a) Articles of apparel, of furskin [Complete making-up (EC)]
ex43.03 (b) Other [CTH (EC)]
4303.10 -  Articles of apparel and
clothing accessoriesAs indicated at the heading or split
heading level
4303.90 -  Other
43.04 Artificial fur and articles
thereof[CTH]
Other options indicated at the splitheading levelSubmitted to CRO for decision
(Doc. 42.268, Issue 7)G/RO/41
Page 523HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex43.04 (a) Articles of artificial fur, apparel [CTH, provided the goods are fully
assembled in one country;
Additional Rule:
Goods of this heading which were
wholly obtained from a collection of
parts, which collection was classifiable
as an unassembled good by virtue of
General Interpretative Rule 2(a), aredeemed to have originated in the country
where the goods were wholly assembled
(US)]
[CTHS (HK) (IND) (MOR) (NZ) (PHI)]
[Complete making-up (EC)]
ex43.04 (b) Articles of artificial fur, other [CTH (EC)][CTH, provided the goods are fullyassembled in one country (US)]
[CTHS (HK) (IND) (MOR) (NZ) (PHI)]Submitted to CRO for decision
(Doc. 42.268, Issue 8)
ex43.04 (c) Other CTHG/RO/41
Page 524
ISSUES FOR DECISION
CHAPTERS 44-49
ISSUE NO. 1: PLANING, SANDING, FINGER OR END-JOINTING:  OF WOOD SAWN
LENGTHWISE, SLICED OR PEELED; OF VENEER SHEETS AND OTHER
WOODS SAWN LENGTHWISE, SLICED OR PEELED; OF CONTINUOUSLY
SHAPED WOOD; OF PARTICLE BOARD; OR OF FIBREBOARD
OPTION A
1. These operations taken individually result in new products having different commercial uses.
The importance of the operations is indicated by the attention given to them in the Explanatory Notes
to the Harmonized System.  (EC) (IND) (NOR) (NZ) (PHI)
It has been suggested that th e operation "finger- [or end-] jointing" be further split up
out of the present split heading.  (CAN)
OPTION B
2. These are minimal operations which do not change the character of the woods upon which
they are carried out.  When performed, they are most often part of the milling process, and there islittle economic justification for performing the operations separately.  Problems of administration
arise in connection with defining the extent of sanding, planing, joining which would be origin
conferring.  As presented, the proposal is open to the interpretation that, for example, sanding
operations undertaken in one country and subsequently  in another would result in two changes in the
country of origin of the good.  Finger-jointing is not undertaken for veneer sheets, particle board orfibreboard.  (AUS) (BRA) (CAN) (JPN) (MEX) (US)
Relevant HS code numbers:
44.07 -  Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-
jointed, of a thickness exceeding 6mm;
44.08 - Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn
lengthwise, sliced or peeled, whether or not pl aned, sanded or finger-jointed, of a thickness
not exceeding 6mm;
44.09 - Wood (including strips and friezes for parquet flooring, not assembled), continuously shaped
(tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like)along any of its edges or faces, whether or not planed, sanded or finger-jointed;
44.10 - Particle board and similar board of wood or other ligneous materials, whether or not
agglomerated with resins or other organic binding substances;
44.11 - Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other
organic substancesG/RO/41
Page 525
ISSUE NO. 2: BEADING OR MOULDING OF: CONTINUOUSLY SHAPED WOOD;
PARTICLE BOARD; FIBREBOARD; PLYWOOD; DENSIFIED WOOD OR
BUILDERS’ JOINERY
OPTION A:
3. Beading or moulding give these woods new characteristics which qualify them as new
products having distinct commercial uses and should be considered as substantial transformation of
the input materials.   (EC) (IND) (MEX) (PHI)
OPTION B:
4. Beading or moulding of the input materials are minimal operations which do not change their
essential commercial character.  It is not appropriate to treat these operations differently from theother surface-working which is performed on woods of the relevant headings and which result in no
changes of headings. (BRA) (CAN) (JPN) (US)
Relevant HS code numbers:
44.08 - Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn
lengthwise, sliced or peeled, whether or not pl aned, sanded or finger-jointed, of a thickness
not exceeding 6mm;
44.09 - Wood (including strips and friezes for parquet flooring, not assembled), continuously shaped
(tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like)along any of its edges or faces, whether or not planed, sanded or finger-jointed;
44.10 - Particle board and similar board of wood or other ligneous materials, whether or not
agglomerated with resins or other organic binding substances;
44.11 - Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other
organic substances;
44.12 - Plywood, veneered panels and similar laminated wood;
44.13 - Densified wood, in blocks, plates strips or profile shapes;
44.18 - Builders’ joinery and carpentry of wood, incl uding cellular wood panels, assembled parquet
panels, shingles and shakes.G/RO/41
Page 526
ISSUE NO. 3: LAMINATION OR REINFORCEMENT BY THE ADDITION OF LAYERS OF
WOOD, PAPER, METAL OR OTHER MATERIALS, WITHOUT CHANGE OF
TARIFF CLASSIFICATION
OPTION A:
5. Lamination or reinforcement, by adding new properties such as increased tensile strength,
substantially transform the input materials.  (EC) (IND) (PHI)
OPTION B:
6. If the lamination or reinforcement have not been sufficient to result in a change in the tariff
classification of the input woods, this indicates no si gnficant change in their characteristics and that
there has not been substantial transformation.  (BRA) (CAN) (JPN) (NZ) (US)
Relevant HS code numbers:
44.08 - Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn
lengthwise, sliced or peeled, whether or not pl aned, sanded or finger-jointed, of a thickness
not exceeding 6mm;
44.10 - Particle board and similar board of wood or other ligneous materials, whether or not
agglomerated with resins or other organic binding substances;
44.11 - Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other
organic substances;
44.12 - Plywood, veneered panels and similar laminated wood.
ISSUE NO. 4: SURFACE-WORKING OF PLYWOOD BY MECHANICAL WORKING OR
SURFACE-COVERING
OPTION A:7. Surface-worked woods are mechanically work ed by grooving, perforating or embossing or
are products covered or coated with other materials such as sheets of wood, plastics, paper, fabric,
base metal or paint.  They are different from the input woods in terms of characteristics such as
appearance and durability.  Because the uses of surface-worked woods are determined largely by their
type of surface, the addition of such surfaces should be considered substantial transformation.  the
following processes are not considered sufficient to  confer origin:  processes in which the edges of
woods are grooved only in a straight line; proce sses in which one side of the wood is not wholly
covered or decorated;  and processes in which the woods are covered by transparent varnishes such as
lacquers.  (CAN) (JPN) (PHI) (SG)G/RO/41
Page 527
OPTION B:
8. Mechanical working or surface-covering of plywood does not result in any change in the
character of the good as plywood.  These are decorative or ancillary processes which should not be
considered to result in substantial transformation.  (BRA) (EC) (IND) (US)
Relevant HS code numbers:
44.12 - Plywood, veneered panels and similar laminated wood.
ISSUE NO. 5: COATING OF PAPER IN ROLLS OR SHEETS WITH KAOLIN OR OTHER
INORGANIC SUBSTANCES
OPTION A:
9. Origin should be conferred for coating with in organic mineral coverings like kaolin as it is to
be conferred for other coating operations.  Coating with inorganic minerals makes the paper or
paperboard suitable for graphic (printing, writing) uses by creating a brighter finish with improved inkreception.  (AUS) (CAN) (EC) (IND) (JPN)
OPTION B:10. Coating paper stock with kaolin does not result in substantial transformation.  (BRA) (MEX)
(US)
Relevant HS code numbers:
48.10 - Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic
substances, with or without a binder, and wi th no other coating, whether or not surface-
coloured, surface-decorated or printed, in rolls or sheets.
REFERENCES:Doc. 41.373 (Secretariat’s list of Basket 2 issues for Chapters 44-46)
Doc. 41.374 (Secretariat’s list of Basket 2 issues for Chapters 47-49)
Doc. 41.489 (Secretariat’s working document for Basket 2 examination)
Doc. 40.245, Annexes C/1, C/2, D/1, D/2 (Report of the 4th Session)
Doc. 41.438 (Submission by AUS)
Doc. 41.457 (Submission by JPN)
Doc. 41.504 (Submission by SG)
Doc. 41.649 (Submission by US)
ISSUE No. 6:  ASSEMBLY OF WOODEN PICTURE FRAMES OF HEADING 44.14 OR
PACKING CASES, BOXES, PALLETS, ETC. OF HEADING 44.15 FROM
BOARDS CUT TO LENGTH
OPTION A: Yes
11. The assembly of picture frames of heading 44.14, or of packing cases, pallets, etc. of heading
44.15 from boards cut to size should be considered to result in substantial transformation.  Even if theG/RO/41
Page 528
starting materials are boards cut to length, the assembly generally may be considered complex.  The
starting materials are goods of another heading (generally, 44.09), and the further working and
assembly to produce frames and packing cases results in substantial transformation.  A rule of change
in tariff heading is generally sufficient to express the substantial transformations which take place.
The only exception would be if the change to these tariff classifications from boards cut to length
occurs solely by reason of the application of GIR 2(a) of the harmonized system with respect tocollections of boards that are presented as unassembled articles of these headings, and there is no
assembly associated with the change of tariff classification.
The rule should be (US, CAN, THAI):
♦ CTH
OPTION B:  No
12. The assembly of picture frames or packing cases, pallets, etc. from boards cut to size does not
result in substantial transformation of the input bo ards.  The cutting to appropriate length is the
principal working required to produce these goods, and the further assembly does not substantially
transform the boards.
The rule should be:
♦ CTH, except from lengths of heading 44.09 (AUS) (PHI)
♦ CTH, except from woods cut to size of heading 44.09 (for heading 44.14) (EC)
♦ CTH, except from woods cut to size of headings 44.07 and 44.09 (for heading 44.15)  (EC)
Relevant HS code numbers:
44.14, 44.15REFERENCES:
42.306
ISSUE No 7:  ASSEMBLY OF CASKS, BARRELS, VATS TUBS AND OTHER COOPERS’
PRODUCTS FROM PARTS (PRINCIPALLY, STAVES)
OPTION A: Yes
13. The assembly of coopers’ wares from parts classified in the same heading should be
considered to result in substantial transformation.  Such assembly of coopers’ goods from parts
(essentially, staves) is more complex than the assembly of frames of heading 44.14, requires more
parts, and results in substantial transformation.
The rule should be (AUS) (CAN) (EC) (IND) (MEX) (PHI):
♦ CTHS
OPTION B:  NoG/RO/41
Page 529
14. While the assembly of cooper’s goods using input woods from outside the heading is
substantial, the change within the heading from parts to assembled goods is not.  This is because these
goods are susceptible to re-use and are frequently shipped disassembled for ease of transport.  It is the
manufacture of the parts which confers origin, and not their subsequent assembly or reassembly.
The rule should be (JPN) (THAI) (US):
♦ CTH
Relevant HS code numbers:
44.16
REFERENCES:42.306
ISSUE No. 8: BLEACHING OR SEMI-BLEACHING OF PULP
OPTION A: Yes
15. Semi-bleaching or bleaching of unbleached pulp are complex chemical processes which
introduce characteristics into the final paper products essential to their intended uses.  For example,bleaching is undertaken to impart brightness or to prepare the pulp for use in food packaging
applications.  The type or extent of bleaching thus determine the uses to which the pulp may be put
and results in new pulp products.
The rule should be:
♦ CTHS or CTSH, depending upon the heading, to reflect the change from  unbleached to bleached
or semi-bleached pulp (PHI) (THAI) (US)
 
♦ Same as above, and also CTSH for subheadings 4703.11, 47.03.19, 47.04.11 and 4704.19 to
recognize the substantial transformation which takes place as a result of the mixing of coniferous
and non-coniferous and bleached and semi-bleached pulps. (CAN)
OPTION B:  No16. Semi-bleaching or bleaching do not change the nature of the products as pulp and thus should
not be taken into account in determining whether substantial transformation takes place.The rule should be (EC) (IND) (JPN):
♦ CTH
Relevant HS code numbers:
47.01 through 47.06G/RO/41
Page 530
ISSUE No. 9:  PRODUCTION OF CORRUGATED PAPER AND PAPERBOARD USING
OTHER PAPER OR PAPERBOARD OF CHAPTER 48
OPTION A:  Yes
17. Substantial transformation takes place as a result of the corrugation of paper or paperboard in
rolls or sheets to produce corrugated paper or paperboard in rolls or sheets.  Corrugating creates a new
and different paper with specific uses related to its new properties.  For example, kraft paper - widely
used for its tensile strength (resistance to tearing or stretching forces) - is corrugated to produce a
product that is used for its structural strength (resistance to crushing forces).
The rule should be (CAN) (HK) (IND) (JPN) (MEX) (THAI):
♦ CTH
OPTION B: No
18. The fabrication of corrugated paper and paperboard from paper and paperboard of chapter 48
cannot be considered as a substantial transformation.  even with gluing and layering to produce linerpaper and paperboard there is no change in the essential characteristic of the goods as paper and there
is no substantial transformation.
The rule should be (AUS) (EC) (PHI):
♦ CTH, except from the headings of Chapter 48
Relevant HS code numbers:
4808.10
ISSUE No. 10: PRODUCING CREPED, CRINK LED, EMBOSSED OR PERFORATED PAPER
OR PAPERBOARD, IN ROLLS, USING PAPER OR PAPERBOARD, IN
ROLLS, OF CHAPTER 48
OPTION A:  Yes
19. The crinkling, creping, embossing or perfora ting of paper in rolls results in substantial
transformation.   This results in products having new characteristics and uses and should be treated as
origin conferring.  For example, crinkled or creped papers are used in packaging applications which
require high elasticity.
The rule should be (HK) (IND) (JPN) (THAI):
♦ CTH
OPTION B:  NoG/RO/41
Page 531
20. These operations do not necessarily change the uses of a particular paper or paperboard stock.
they are largely decorative measures and should not confer origin.  no combination of crinkling,
creping, embossing or perforating should be considered to result in substantial transformation.
The rule should be (AUS) (CAN) (EC) (PHI) (US):
♦ CTH, except from the headings of Chapter 48
Relevant HS code numbers:
4808.20, 4808.30, 4808.90
ISSUE No. 11: PRODUCTION OF PRINTED BOOKS, BROCHURES, LEAFLETS AND
SIMILAR PRINTED MATTER USING PRINTED MATERIALS CLASSIFIED IN
THE SAME HEADING
OPTION A:  Yes
21. The fabrication of books from other printed matter classified also in heading 49.01 should be
considered to result in substantial transformation. The other printed matter which would comprise the
materials for the fabrication of books would include:  printed sheets comprising the whole or a part of
the complete work and designed for binding; brochures, pamphlets and leaflets; and other textual
matter including collections of printed reproductions of pictures, drawings, etc. suitable for binding.
The rule should be (EC) (IND) (THAI):
♦ CTH or change within heading 49.01 by binding
OPTION B: No
22. Substantial transformation does not take place when printed matter of heading 49.01 is bound
to produce other printed matter of heading 49.01.
The rule should be (AUS) (HK) (CAN) (JPN) (HK) (PHI):
• CTH
Relevant HS code numbers:
49.01G/RO/41
Page 532
CHAPTER 44
Chapter Notes
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly.  Basket 1.
Those rules which refer to a change of heading or subheading shal l not apply to changes which result solely from the applicatio n of General Rule of
Interpretation 2(a) with respect to collections of parts that are presented as unassembled articles of another heading or subhe ading.    Submitted to CRO
for decision (Doc.OC0031, Issue No.4; Doc.OC0029)
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 44 Wood and articles of wood;
wood charcoal
44.01 Fuel wood, in logs, in billets, in
twigs, in faggots or in similarforms; wood in chips or
particles; sawdust and wood
waste and scrap, whether or
not agglomerated in logs,
briquettes, pellets or similar
forms.As indicated at the subheadings
level
4401.10 - Fuel w ood, in logs, in
billets, in twigs, in faggots or in
similar formsCTH Basket 1 (Endorsed by CRO)
- Wood in chips or
particles:
4401.21 -- Coniferous CTH Basket 1 (Endorsed by CRO)
4401.22 -- Non-coniferous CTH Basket 1 (Endorsed by CRO)
4401.30 - Sawdust and wood
waste and scrap, whether or not
agglomerated in logs, briquettes,
pellets or similar formsAs indicated at the split
subheading levelG/RO/41
Page 533HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex4401.30(a) - Agglomerated CTSHS Basket 1 (Endorsed by CRO)
ex4401.30(b)  - Not agglomerated The country of origin of
sawdust and waste and scrap of
this subheading is the countryin which the goods are derived
or collected from
manufacturing or processing
operations or from
consumptionBasket 1 (Endorsed by CRO)
44.02 Wood charcoal (i ncluding shell
or nut charcoal), whether or
not agglomerated.As indicated at the split
heading level
ex 44.02(a) - Agglomerated CTHS Basket 1 (Endorsed by CRO)
ex 44.02(b) - Non-agglomerated CTH Basket 1 (Endorsed by CRO)
44.03 Wood in the rough, whether or
not stripped of bark or
sapwood, or roughly squared.CTH Basket 1 (Endorsed by CRO)
44.04 Hoopwood; split poles; piles,
pickets and stakes of wood,
pointed but not sawn
lengthwise; wooden sticks,
roughly trimmed but not
turned, bent or otherwiseworked, suitable for the
manufacture of walking-sticks,
umbrellas, tool handles or the
like; chipwood and the like.CTH Basket 1 (Endorsed by CRO)
44.05 Wood wool; wood flour. CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 534
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
44.06 Railway or tramway sleepers
(cross-ties) of wood.CTH Basket 1 (Endorsed by CRO)
44.07 Wood sawn or chipped
lengthwise, sliced or peeled,
whether or not planed, sandedor finger-jointed, of a thickness
exceeding 6 mm.[CTH]
[As indicated at the split
heading level ]Submitted to CRO for decision
(Doc. 42.633)
Issue N° 1
[ex 44.07(a) - Planed, sanded, or finger-
jointed or end-jointed,[CTHS
ex 44.07(b) - Other CTH]
44.08 Veneer sheets and sheets for
plywood (whether or not
spliced) and other wood sawnlengthwise, sliced or peeled,
whether or not planed, sanded
or finger-jointed, of a thickness
not exceeding 6 mm.[CTH]
[As indicated at the split
heading level ]Submitted to CRO for decision
(Doc. 42.633)
Issue N° 1Issue N° 2
Issue N° 3
[ex 44.08(a)  -Planed, sanded, finger-jointed,
end-jointed or reinforced,[CTHS
ex 44.08(b) - Other CTH]
44.09 Wood (including strips and
friezes for parquet flooring, not
assembled) continuously
shaped (tongued, grooved,
rebated, chamfered, V-jointed,
beaded, moulded, rounded orthe like) along any of its edges
or faces, whether or not
planed, sanded or finger-
jointed.[CTH]
[As indicated at the split
heading level ]Submitted to CRO for decision
(Doc. 42.633)
Issue N° 1
Issue N° 2G/RO/41
Page 535HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
[ex 44.09(a) -  Beaded, moulded ,
planed, sanded or finger or end-
jointed[CTHS
ex 44.09(b) - Other CTH]
44.10 Particle board and similar
board of wood or other
ligneous materials, whether ornot agglomerated with resins
or other organic binding
substances.[CTH]
[As indicated at the split
heading level ]Submitted to CRO for decision
(Doc. 42.633)
Issue N° 1Issue N° 2
Issue N° 3
 ex44.10(a) - Planed, sanded, finger or
end-jointed, beaded, moulded,
laminated.or reinforced[CTHS
ex44.10(b) - Other CTH]
44.11 Fibreboard of wood or other
ligneous materials, whether or
not bonded with resins or other
organic substances.[CTH]
[As indicated at the split
heading level ]Submitted to CRO for decision
(Doc. 42.633)
Issue N° 1
Issue N° 2
Issue N° 3
[ex 44.11(a) - Planed, sanded, finger or
end-jointed, beaded, moulded or
laminated.[CTHS
ex 44.11(b) - Other CTH]
44.12 Plywood, veneered panels and
similar laminated wood.[CTH]
[CTH  or
or change
within this heading by surface
working]
[As indicated at the split
heading level ]Surface-worked woods
mean that :
(1) “Mechanically
worked woods”    which
are the products grooved,
embossed or perforated :Submitted to CRO for decision
(Doc. 42.633)
Issue N° 1
Issue N° 2
Issue N° 3G/RO/41
Page 536
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
(2) “Surface-covered
woods” which are the
products covered withother materials such as
sheet of wood, plastics,
paper, fabric or base
metal, or paint.
However, the following
processes which are not
sufficient to confer origin
should be excluded from
substantialtransformation.
(a) Processes in
which the edges of the
woods are only groovedin a straight line
(b) Processes in
which one side of the
woods is not wholly
covered or decorated.
(c) Processes in
which the woods are
covered by transparent
varnishes such as
lacquers.G/RO/41
Page 537HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex 44.12(a) - Laminated or reinforced;
beadings and mouldings,
including moulded skirting and
other moulded boards.[CTHS]
ex 44.12(b) - Other [CTH]
44.13 Densified wood, in blocks,
plates, strips or profile shapes.[CTH]
[As indicated at the split
heading level ]Submitted to CRO for decision
(Doc. 42.633)Issue N° 2
ex 44.13(a) - Beadings and mouldings [CTHS]
ex 44.13(b) - Other [CTH]
44.14 Wooden frames for paintings,
photographs, mirrors or
similar objects.[CTH] except from lengths of
heading 44.09 (EC)(PHI)Submitted to CRO for decision
(Doc. 42.633)
Issue N° 6
[CTH] (CAN)(US)(TH)
44.15 Packing cases, boxes, crates,
drums and similar packings, of
wood; cable-drums of wood;pallets, box pallets and other
load boards, of wood; pallet
collars of wood.[CTH except from boards cut to
size] (EC)(PHI)Submitted to CRO for decision
(Doc. 42.633)
Issue N° 6
[CTH] (US) (CAN)(TH)
44.16 Casks, barrels, vats, tubs and
other coopers' products and
parts thereof, of wood,including staves.[CTH] (US)(CAN)(TH)
[As indicated at the split
heading level ]Submitted to CRO for decision
(Doc. 42.633)
Issue N° 7
ex 44.16(a) - Casks, barrels, vats, tubs
and other coopers' products[CTHS] (EC)(PHI)
ex 44.16(b) ] - Parts [CTH] (EC)(PHI)]G/RO/41
Page 538
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
44.17 Tools, tool bodi es, tool handles,
broom or brush bodies and
handles, of wood; boot or shoelasts and trees, of wood.CTH Basket 1 (Endorsed by CRO)
44.18 Builders' joinery and
carpentry of wood, including
cellular wood panels,
assembled parquet panels,
shingles and shakes.[CTH]
[as indicated at the split
heading level ]Submitted to CRO for decision
(Doc. 42.633)
Issue N° 2
ex 44.18 (a) - Beadings and mouldings [CTHS]
ex 44.18 (b) - Other [CTH]
44.19 Tableware and kitchenware, of
wood.CTH Basket 1 (Endorsed by CRO)
44.20 Wood marquetry and inlaid
wood; caskets and cases forjewellery or cutlery, and
similar articles, of wood;
statuettes and other
ornaments, of wood; wooden
articles of furniture not falling
in Chapter 94.CTH Basket 1 (Endorsed by CRO)
44.21 Other articles of wood. CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 539CHAPTER 45
Chapter Notes
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly.  Basket 1 .
2. Those rules which refer to a change of heading or subheading sh all not apply to changes which result solely from the applicat ion of General Rule of
Interpretation 2(a) with respect to collections of parts that are presented as unassembled articles of another heading or subhe ading.    Submitted to CRO
for decision (Doc.OC0031, Issue No.4; Doc.OC0029)
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 45 Cork and articles of cork
45.01 Natural cork, raw or simply
prepared; waste cork; crushed,
granulated or ground cork.CTH Basket 1 (Endorsed by CRO)
45.02 Natural cork, debacked or
roughly squared, or in
rectangular (including square)
blocks, plates, sheets or strip,(including sharp-edged blanks
for corks or stoppers).As indicated at the split heading level
ex 45.02(a) - With an applied backing added
by lamination or other processCTHS Basket 1 (Endorsed by CRO)
ex 45.02(b) - Other CTH, except from heading 45.01 Basket 1 (Endorsed by CRO)
45.03 Articles of natural cork. CTH except from heading 45.02 when
resulting from simple cuttingBasket 1 (Endorsed by CRO)
45.04 Agglomerated cork (with or
without a binding substance)
and articles of agglomeratedcork.As indicated at the split subheading levelG/RO/41
Page 540
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4504.10 - Blocks, plates, sheets and strip;
tiles of any shape; solid
cylinders, including discs:As indicated at the split subheading level
ex4504.10(a) -- With an applied backing
added by lamination or other
processCTSHS Basket 1 (Endorsed by CRO)
ex4504.10(b) -- Other CTH Basket 1 (Endorsed by CRO)
4504. 90 - Other As indicated at the split subheading level
ex 4504.90(a) -- With an applied backing
added by lamination or other
processCTSHS except from subheading
4504.10(a)Basket 1 (Endorsed by CRO)
ex 4504.90(b) -- Other CTSH Basket 1 (Endorsed by CRO)G/RO/41
Page 541CHAPTER 46
Chapter Notes
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly.  Basket 1.
2. Those rules which refer to a change of heading or subheading sh all not apply to changes which result solely from the applicat ion of General Rule of
Interpretation 2(a) with respect to collections of parts that are presented as unassembled articles of another heading or subhe ading.    Submitted to CRO
for decision (Doc.OC0031, Issue No.4; Doc.OC0029)
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 46 Manufactures of straw, of
esparto or of other plaitingmaterials; basketware and
wickerwork
46.01 Plaits and similar products of
plaiting materials, whether or
not assembled into strips;
plaiting materials, plaits and
similar products of plaiting
materials, bound together in
parallel strands or woven, insheet form, whether or not
being finished articles (for
example, mats, matting,
screens).As indicated  at the subheading level
4601.10 - Plaits and similar
products of plaiting materials,
whether or not assembled intostripsCTH Basket 1 (Endorsed by CRO)G/RO/41
Page 542
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4601.20 - Mats, matting and
screens of vegetable materialsCTSH Basket 1 (Endorsed by CRO)
-O t h e r  :
4601.91 -- Of vegetable materials CTSH Basket 1 (Endorsed by CRO)
4601.99 -- Other CTSH Basket 1 (Endorsed by CRO)
46.02 Basketwork, wickerwork and
other articles, made directly toshape from plaiting materials
or made up from goods of
heading No. 46.01; articles of
loofah.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 543CHAPTER 47
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 47 Pulp of wood or of other
fibrous cellulosic material;
recovered (waste and scrap)
paper or paperboard
47.01 Mechanical wood pulp. [CTH (AUS)(PHI)]
[As indicated at the split heading level ]Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
[ex 47.01(a) - Unbleached [CTH]
ex 47.01(b) - Bleached or semi-bleached [CTHS] (US)(CAN)(TH)]
47.02 Chemical wood pulp,
dissolving grades.[CTH (AUS) (PHI)]
[As indicated at the split heading level ]Submitted to CRO for decision (Doc.
42.633)Issue N° 8
[ex 47.02(a) - Unbleached [CTH]
ex 47.02(b) - Bleached or semi-bleached [CTHS] (US)(CAN)(TH)]
47.03 Chemical wood pulp, soda or
sulphate, other than dissolving
grades.As indicated at the subheading level
- Unbleached :
4703.11 -- Coniferous [CTH]
[CTSH] (CAN)Submitted to CRO for decision (Doc.
42.633)Issue N° 8
4703.19 -- Non-coniferous [CTH]
[CTSH] (CAN)Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
- Semi-bleached orbleached:
4703.21 -- Coniferous [CTH] (AUS)(PHI)
[CTSH] (US)(CAN)Submitted to CRO for decision (Doc.
42.633)Issue N° 8G/RO/41
Page 544
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
4703.29 -- Non-coniferous [CTH] (AUS)(PHI)
[CTSH] (US)(CAN)Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
47.04 Chemical wood pulp, sulphite,
other than dissolving grades.As indicated at the subheading level
- Unbleached :
4704.11 -- Coniferous [CTH]
[CTSH] (CAN)Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
4704.19 -- Non-coniferous [CTH]
[CTSH] (CAN)Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
- Semi-bleached orbleached:
4704.21 -- Coniferous [CTH] (AUS)(PHI)
[CTSH] (US)(CAN)Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
4704.29 -- Non-coniferous [CTH] (AUS)(PHI)
[CTSH] (US)(CAN)Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
47.05 Semi-chemical wood pulp. [CTH] (AUS)(PHI)
[As indicated at the split heading level ]Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
ex 47.05(a) - Unbleached [CTH]
ex 47.02(b) - Bleached or semi-bleached [CTHS] (US)(CAN)(TH)
47.06 Pulps of fibres derived from
recovered (waste and scrap)
paper or paperboard or of
other fibrous cellulosic
material.[CTH (AUS)(PHI)]
[As indicated at the split heading level ]Submitted to CRO for decision (Doc.
42.633)
Issue N° 8
[ex 47.06(a) - Unbleached [CTH] (AUS)(PHI)G/RO/41
Page 545HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
ex 47.06(b) - Bleached or semi-bleached [As indicated at the split heading level ]
47.07 Recovered (waste and scrap)
paper or paperboard.The country of origin of recovered (waste
and scrap) paper or paperboard is the
country in which the goods are derived or
collected from manufacturing orprocessing operations or from
consumptionBasket 1 (Endorsed by CRO)
4707.10 - Unbleached kraft paper
or paperboard or corrugated
paper or paperboardAs indicated at the  heading level
4707.20 - Other paper or
paperboard made mainly of
bleached chemical pulp, not
coloured in the mass
4707.30 - Paper or paperboard
made mainly of mechanical pulp(for example, newspapers,
journals and similar printed
matter)
4707.90 - Other, including
unsorted waste and scrapG/RO/41
Page 546
CHAPTER 48
Chapter Notes
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly.  Basket 1 .
2. Those rules which refer to a change of heading or subheading sh all not apply to changes which result solely from the applicat ion of General Rule of
Interpretation 2(a) with respect to collections of parts that are presented as unassembled articles of another heading or subhe ading.    Submitted to CRO
for decision (Doc.OC0031, Issue No.4; Doc.OC0029)
3. For headings 48.14 through 48.23, those rules which refer to a change of heading or subheading shall not apply to changes whi ch are the result
solely of trimming or cutting to rectangular (including square) shape.  Basket 1 (Endorsed by CRO)
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C DE
Chapter 48 Paper and paperboard; articles of
paper pulp, of paper or of
paperboard
48.01 Newsprint, in rolls or sheets. CTH Basket 1 (Endorsed by CRO)
48.02 Uncoated paper and paperboard,
of a kind used for writing,
printing or other graphic
purposes, and punch card stock
and punch tape paper, in rolls orsheets, other than paper of
heading No. 48.01 or 48.03; hand-
made paper and paperboard.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 547HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C DE
48.03 Toilet or facial tissue stock, towel
or napkin stock and similar paper
of a kind used for household orsanitary purposes, cellulose
wadding and webs of cellulose
fibres, whether or not creped,
crinkled, embossed, perforated,
surface-coloured, surface-decorated or printed, in rolls or
sheets.CTH Basket 1 (Endorsed by CRO)
48.04 Uncoated kraft paper and
paperboard, in rolls or sheets,
other than that of heading No.
48.02 or 48.03.CTH Basket 1 (Endorsed by CRO)
48.05 Other uncoated paper and
paperboard, in rolls or sheets, not
further worked or processed than
as specified in Note 2 to this
Chapter.CTH Basket 1 (Endorsed by CRO)
48.06 Vegetable parchment, greaseproof
papers, tracing papers andglassine and other glazed
transparent or tr anslucent papers,
in rolls or sheets.CTH Basket 1 (Endorsed by CRO)
48.07 Composite paper and paperboard
(made by sticking flat layers of
paper or paperboard together
with an adhesive), not surface-
coated or impregnated, whether
or not internally reinforced, inrolls or sheets.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 548
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C DE
48.08 Paper and paperboard,
corrugated (with or without glued
flat surface sheets), creped,crinkled, embossed or perforated,
in rolls or sheets, other than paper
of the kind described in heading
No. 48.03.As specified for subheadings.
4808.10 - Corrugated paper and
paperboard, whether or not
perforated[CTH] (CAN)(JPN)(US)(TH)
[CTH, except from headings of
Chapter 48 (AUS)(PHI)(EC)Submitted to CRO for decision (Doc.
42.633)
Issue N° 9
4808.20 - Sack kraft paper, creped or
crinkled, whether or not embossed
or perforated[CTH (JPN)(TH)]
[CTH, except from headings of
Chapter 48] (AUS)(US)(PHI)Submitted to CRO for decision (Doc.
42.633)
Issue N° 10
4808.30 - Other kraft paper, creped or
crinkled, whether or not embossed
or perforated[CTH (JPN)(TH)]
[CTH, except from headings of
Chapter 48] (AUS)(US)(PHI)Submitted to CRO for decision (Doc.
42.633)
Issue N° 10
4808.90 - Other [CTH (JPN)(TH)]
[CTH, except from headings ofChapter 48] (AUS)(US)(PHI)Submitted to CRO for decision (Doc.
42.633)Issue N° 10
48.09 Carbon paper, self-copy paper
and other copying or transfer
papers (including coated orimpregnated paper for duplicator
stencils or offset plates), whether
or not printed, in rolls or sheets.CTHBasket 1 (Endorsed by CRO)G/RO/41
Page 549HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C DE
48.10 Paper and paperboard, coated on
one or both sides with kaolin
(China clay) or other inorganicsubstances, with or without a
binder, and with no other coating,
whether or not surface-coloured,
surface-decorated or printed, in
rolls or sheets.[CTH]
[CTH, except from heading 48.02]
[CTH, except from headings ofChapter 48]Submitted to CRO for decision (Doc.
42.633)
Issue N° 5
48.11 Paper, paperboard, cellulose
wadding and webs of cellulosefibres, coated, impregnated,
covered, surface-coloured,
surface-decorated or printed, in
rolls or sheets, other than goods of
the kind described in heading No.48.03, 48.09 or 48.10.As specified at subheading level
4811.10 - Tarred, bituminised or
asphalted paper and paperboardCTSH Basket 1  (Endorsed by CRO)
- Gummed or adhesive paper
and paperboard :
4811.21 -- Self-adhesive CTSH Basket 1 (Endorsed by CRO)
4811.29 -- Other CTSH Basket 1 (Endorsed by CRO)
- Paper and paperboard
coated, impregnated or covered with
plastics (excluding adhesives) :
4811.31 -- Bleached, weighing more
than 150 g/m²CTSH Basket 1 (Endorsed by CRO)
4811.39 -- Other As specified at split subheading level
ex 4811.39 (a) - Ink-jet imaging paper and
paperboardcoated, impregnated or
covered with plasticCTSHS Basket 1 (Endorsed by CRO)G/RO/41
Page 550
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C DE
ex 4811.39 (b) - Other CTSH Basket 1 (Endorsed by CRO)
4811.40 - Paper and paperboard,
coated, impregnated or covered with
wax, paraffin wax, stearin, oil or
glycerolCTSH Basket 1 (Endorsed by CRO)
4811.90 - Other paper, paperboard,
cellulose wadding and webs ofcellulose fibresCTSH Basket 1 (Endorsed by CRO)
48.12 Filter blocks, slabs and plates, of
paper pulp.CTH Basket 1 (Endorsed by CRO)
48.13 Cigarette paper, whether or not
cut to size or in the form of
booklets or tubes.CTH Basket 1 (Endorsed by CRO)
48.14 Wallpaper and similar wall
coverings; window transparenciesof paper.CTH Basket 1 (Endorsed by CRO)
48.15 Floor coverings on a base of paper
or of paperboard, whether or not
cut to size.CTH Basket 1 (Endorsed by CRO)
48.16 Carbon paper, self-copy paper
and other copying or transferpapers (other than those of
heading No. 48.09), duplicator
stencils and offset plates, of paper,
whether or not put up in boxes.CTH, except from heading 48.09. Basket 1 (Endorsed by CRO)G/RO/41
Page 551HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C DE
48.17 Envelopes, letter cards, plain
postcards and correspondence
cards, of paper or paperboard;boxes, pouches, wallets and
writing compendiums, of paper or
paperboard, containing an
assortment of paper stationery.CTH Basket 1 (Endorsed by CRO)
48.18 Toilet paper and similar paper,
cellulose wadding or webs of
cellulose fibres, of a kind used forhousehold or sanitary purposes, in
rolls of a width not exceeding
36 cm, or cut to size or shape;
handkerchiefs, cleansing tissues,
towels, tablecloths, serviettes,napkins for babies, tampons, bed
sheets and similar household,
sanitary or hospital articles,
articles of apparel and clothing
accessories, of paper pulp, paper,
cellulose wadding or webs of
cellulose fibres.CTH Basket 1 (Endorsed by CRO)
48.19 Cartons, boxes, cases, bags and
other packing containers, ofpaper, paperboard, cellulose
wadding or webs of cellulose
fibres; box files, letter trays, and
similar articles, of paper or
paperboard of a kind used inoffices, shops or the like.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 552
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C DE
48.20 Registers, account books, note
books, order books, receipt books,
letter pads, memorandum pads,diaries and similar articles,
exercise books, blotting-pads,
binders (loose-leaf or other),
folders, file covers, manifold
business forms, interleavedcarbon sets and other articles of
stationery, of paper or
paperboard; albums for samples
or for collections and book covers,
of paper or paperboard.CTH Basket 1 (Endorsed by CRO)
48.21 Paper or paperboard labels of all
kinds, whether or not printed.CTH Basket 1 (Endorsed by CRO)
48.22 Bobbins, spools, cops and similar
supports of paper pulp, paper or
paperboard (whether or not
perforated or hardened).CTH Basket 1 (Endorsed by CRO)
48.23 Other paper, paperboard,
cellulose wadding and webs ofcellulose fibres, cut to size or
shape; other articles of paper
pulp, paper, paperboard, cellulose
wadding or webs of cellulose
fibres.CTH Basket 1 (Endorsed by CRO)
- Gummed or adhesive paper,
in strips or rolls :As specified for heading
4823.11 -- Self-adhesive
4823.19 -- Other
4823.20 - Filter paper and paperboardG/RO/41
Page 553HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C DE
4823.40 - Rolls, sheets and dials,
printed for self-recording apparatusAs specified for heading
- Other paper and paperboard,
of a kind used for writing, printing
or other graphic purposes :
4823.51 -- Printed, embossed or
perforated
4823.59 -- Other
4823.60 - Trays, dishes, plates, cups
and the like, of paper or paperboard
 4823.70 - Moulded or pressed articles
of paper and pulp
 4823.90 - OtherG/RO/41
Page 554
CHAPTER 49
Chapter Notes
1. For the purposes of this chapter, those rules which refer to a change of heading or subheading shall not apply to changes whi ch result from
disassembly.  Basket 1
2. Those rules which refer to a change of heading or subheading sh all not apply to changes which result solely from the applicat ion of General Rule of
Interpretation 2(a) with respect to collections of parts that are presented as unassembled articles of another heading or subhe ading.    Submitted to CRO
for decision (Doc.OC0031, Issue No.4; Doc.OC0029)
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
Chapter 49 Printed books, newspapers,
pictures and other products ofthe printing industry;
manuscripts, typescripts and
plans
49.01 Printed books, brochures,
leaflets and similar printed
matter, whether or not in
single sheets.[CTH] (PHI)(US)(JPN)(CAN)(AUS)
[CTH, or change within the heading]
(EC)(TH)]Submitted to CRO for decision (Doc.
42.633)
Issue N° 11
49.02 Newspapers, journals and
periodicals, whether or not
illustrated or containing
advertising material.CTH Basket 1 (Endorsed by CRO)
49.03 Children's picture, drawing or
colouring books.CTH Basket 1 (Endorsed by CRO)
49.04 Music, printed or in
manuscript, whether or not
bound or illustrated.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 555HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
49.05 Maps and hydrographic or
similar charts of all kinds,
including atlases, wall maps,topographical plans and
globes, printed.CTH Basket 1 (Endorsed by CRO)
49.06 Plans and drawings for
architectural, engineering,
industrial, commercial,
topographical or similar
purposes, being originalsdrawn by hand; hand-written
texts; photographic
reproductions on sensitised
paper and carbon copies of the
foregoing.CTH Basket 1 (Endorsed by CRO)
49.07 Unused postage, revenue or
similar stamps of current or
new issue in the country to
which they are destined;stamp-impressed paper;
banknotes; cheque forms;
stock, share or bond
certificates and similar
documents of title.CTH Basket 1 (Endorsed by CRO)
49.08 Transfers (decalcomanias). CTH Basket 1 (Endorsed by CRO)
49.09 Printed or illustrated
postcards; printed cards
bearing personal greetings,
messages or announcements,
whether or not illustrated, withor without envelopes or
trimmings.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 556
HS Code
NumberDescription of goods Origin Criteria Notes Comments
AB C D E
49.10 Calendars of any kind, printed,
including calendar blocks.CTH Basket 1 (Endorsed by CRO)
49.11 Other printed matter,
including printed pictures and
photographs.CTH Basket 1 (Endorsed by CRO)G/RO/41
Page 557
ISSUES FOR DECISION: CHAPTERS 50 TO 63
ISSUE NO. 1: GARNETTING
1. Garnetting is a process for recovering fibres, known as garnetted stock, from rags or other
waste of any textile material or textile articles (classified in headings 63.09, 63.10) by use of a garnett,
a machine which pulls the structure apart.
OPTION A:
2. The operation of garnetting results in a new product and is a substantial transformation.  The
waste textile materials or “stock” is sorted by type and colour, followed by chemical treatment andmechanical processes to recover the fibre.  The recovered fibre is a new product that has undergone a
substantial transformation from the waste materials as a result of garnetting.
3. Textile waste may be combined with waste orig inating in other countries before being sorted
by type and colour for garnetting.  It is not practicable to base the origin of the fibres on the country of
origin of the waste materials.
OPTION B:
4. Garnetting is not substantial transformation.  Garnetted stock has the origin of the waste
textile materials from which it is obtained.  Garnetted stock is obtained from waste in the same
country where the waste is derived so there is no need to have a special rule.
Relevant HS Codes:
50.03, 51.04, 53.01, 53.02, 53.03, 53.04, 53.05, 55.05
References:
41.630, 41.702
ISSUE NO. 2: CARDING OR COMBING OF FIBRES IN PREPARATION FOR SPINNING
5. Wool and fine or coarse animal hair, waste of w ool and fine or coarse animal hair, cotton and
cotton waste, synthetic or artificial staple fibres and waste of synthetic or artificial fibres are carded or
combed in preparation for spinning.  Carding disentangles the fibres, lays them more or less parallel,
and entirely or largely removes any extraneous matter they may still contain. The fibres are then in theform of wide webs (laps) which are generally condensed into slivers. These slivers may or may not be
combed before being converted into rovings. Combing removes the last traces of extraneous matter
clinging to the fibres and eliminates the shorter fibres in the form of combing waste, only longer
fibres, lying parallel, remain.
OPTION A:
6. Carding or combing does not bring about a substantial transformation, it is merely a
preparation for spinning.
OPTION B:
7. Carding or combing of natural fibres results in a substantial transformation.  Before
undergoing these operations, natural fibres are unsuitable for spinning.  However, carding or combing
of synthetic or artificial fibres is not a substantial transformation, these operations being less vitalG/RO/41
Page 558
given the great regularity of the fibres at issue.  Moreover, synthetic and artificial fibres do not require
washing after extrusion.
Relevant HS Codes:
Natural Fibres:  51.05, 52.03,
Synthetic or artificial fibres:  55.06, 55.07
Reference:
41.702
ISSUE NO. 3:  SPINNING CARDED OR COMBED FIBRES TO YARNSOPTION A:
8. Spinning alone is not a substantial transformation.  To be considered as substantial
transformation yarns must be produced from fibres that have not been carded or combed or not
otherwise prepared.
9. The vital operation in the manufacture of yarns is  carding and/or combing, which convert the
raw materials (fibres) into card slivers which are then simply wound into yarns.
OPTION B:
10. The change from carded or combed fibres by spinning to produce yarn is a substantial
transformation because the good is not called a yarn before spinning.
Relevant HS Codes:
50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08, 54.01 to 54.06, 55.08 to 55.11
Reference:
41.702
ISSUE NO. 4:  MERCERISATIONOPTION A:
11. Mercerisation causes the fibre cross-section to become swollen and more rounded. Yarns and
fabrics are made :
- stronger
- more lustrous- capable of being dyed or printed to a much deeper shade for a given amount of colour.
12. Treatments such as mercerisation affect the main structure of the yarn and are not a surface
treatment and must be considered as substantial transformations.
OPTION B:
13. Mercerisation is merely a finishing operation and does not transform the yarn.
Relevant HS Codes
51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08, 54.03, 55.08 to 55.11G/RO/41
Page 559
Reference:
41.622, 41.716
ISSUE NO. 5:  TEXTURING OR BULKINGOPTION A:
14. Texturing of synthetic filaments produces new yarns with the following special properties:
- increased volume
- increased extensibility and elasticity-l o w e r  l u s t r e- better thermal insulation due to the enclosed air- softer and more comfortable fabrics- higher vapour pe rmeability and moisture resistance
15. Through texturing, highly elastic yarns with a crimp extension of 150 to 300% are produced.
16. Textured yarns are applied inter alia for stockings and tights, swimwear, sportswear,
outerwear or carpets.
17. Bulked yarns are voluminous yarns with crimps and loops having normal extensibility and
elasticity. High-bulk yarns are made from man-made  staple fibres and are usually made by blending
acrylic fibres of high and low potential shrinkage. During a subsequent heat treatment, the high
shrinkage fibres contract causing the other fibres to buckle. A similar effect can be obtained by using
biocomponent fibres.
18. Treatments such as texturing and bulking affect the main structure of the yarn and are not a
surface treatment and must be considered as substantial transformations.
19. Bulking of yarns made of synthetic staple fibres is a substantial transformation.  The bulked
yarn is a new product with new characteristics.  The yarn has increased space which gives properties
of greater warmth and water absorbency to the fabric used for garments.
OPTION B:
20. Treatments such as texturing or bulking are finishing operations and do not substantially
transform the yarn.
Relevant HS Codes:
54.02, 54.03, 55.09, 55.11
References:
41.622, 41.716
ISSUE NO. 6:  PROCESSING OF YARNS BY PROCESSES SUCH AS LAYER YARN PROCESS,
KNOPPING, LOOPING, CORE-SPINNING, COMPACTED YARN PROCESS, SLUB YARNPROCESS
OPTION A:G/RO/41
Page 560
21. Change from yarns to processed yarn classified in the same heading is substantial
transformation provided that one or more of the fo llowing processes is carried out: (a) for yarn of
natural or man-made staple fibres:  layer yarn pr ocess, knopping, looping, core-spinning, mercerising;
(b) for yarn of man-made filament: layer yarn process, looping, core-spinning, compacted yarn
process, slub yarn process.
22. Core yarns are multi-component yarns in which one of the components, the core, stays at the
centre of the yarn whilst the others cover it. Core yarns have long be used for burnt out effects in
woven fabrics. Stretch fabrics can be made from core yarns in which the core is an elastane filament
and the covering is made from natural fibre yarn.
23. Sewing threads are often made from core yarns or core-spun yarns. The synthetic filament
core gives high strength whilst the cover yarn or covering fibres prevent the needle from overheating
and protect the core from softening or melting at the needle during high-speed sewing.
24. Such processed yarns have new physical properties such as :
- improved strength
- improved regularity- heavier structures- special effects
25. These operations change the structure of the single yarns to a very high extent and in a
permanent way and are irreversible.
OPTION B:
26. The processed yarn is still a yarn and has not undergone a substantial transformation.
Relevant HS Codes:
51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08, 54.01 to 54.06, 55.08 to 55.11
References:
41.622, 41.630, 41.702, 41.713
ISSUE NO. 7:  FOLDING (TWISTING) OR CABLING OF YARNSOPTION A:
27. The operations of folding, twisting or cabling result in new products with new properties and
new fields of application. In the design of textile products, yarns are first selected on the basis of the
physical properties resulting from these processes.
28. Folded and plied yarns are made by twisting together at least two single yarns. The folded
yarns may be 2-fold, 3-fold or 4-fold. Cabled yarn s are made by twisting together folded yarns and
may be 2-fold + 2-fold; 3-fold + 3-fold; 2-fold + 2-fold + 2-fold; etc.
OPTION B:
29. The folded or cabled yarn is still a yarn and has not undergone a substantial transformation.G/RO/41
Page 561
Relevant HS Codes:
50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08, 54.01 to 54.06, 55.08 to 55.11
References:
41.622, 41.630, 41.702, 41.713
ISSUE NO. 8: PRODUCTION OF SEWING THREAD FROM YARNS OF THE SAME
CHAPTER
OPTION A:
30. The production of sewing thread from yarns (single or multiplied) of the same chapter is a
substantial transformation except when the change is the result of merely putting yarns on support.
31. The sewing thread generally needs richer fibre mixings compared to normal yarns. It must be
strong, smooth, even plied or cabled yarn treated by special finishing process to make it abrasion
resistant. Sewability is the ability to produce a seam with minimum number of breaks. Sewing thread
is completely knotfree, strong and smooth enough to withstand abrasion resistance.
OPTION B:
32. Producing sewing thread from existing yarns of the same chapter is not a substantial
transformation. Sewing thread is simply another yarn whose classification is dependent on the type of
twist, lubrication, and weight on supports when presented.
Relevant HS Codes:
52.04 , 54.01,  55.08
References:
41.540, 41.618, 41.702
ISSUE NO. 9:  DOWN PROOF FINISHING OF COTTON WOVEN FABRICSOPTION A:
33. Fabric treated by down proof finishing is used for pillows, sleeping bags etc. and ensures that
the feathers or down are retained inside the covering fabric.  The down-proofed fabric has new
characteristics and is substantially transformed by physical and chemical processes that closepermanently the openings between the warp and weft.  Un-proofed fabric could not be used for the
purpose.
OPTION B:
34. Down proofing is just a finishing process and is not a substantial transformation. The process
is similar to a simple calendering operation that merely flattens the fabric slightly.
Relevant HS Codes:
52.08, 52.09, 52.10, 52.11, 52.12
Reference:
41.721G/RO/41
Page 562
ISSUE NO. 10:  MANUFACTURE OF CARPETS AND OTHER TEXTILE FLOOR COVERINGS
OF FELT, NOT TUFTED OR FLOCKED
OPTION A:
35. The process of obtaining felt carpet from felt is simply cutting and is not a substantial
transformation.  However, the backing or reinforcing of the underside with backing material results in
a new article for commerce and is a substantial transformation.
OPTION B:
36. Producing felt carpets by simply cutting felt of heading 56.02 is not a substantial
transformation. Nor does reinforcing one of the sides of a felt article alter its nature or use.
Relevant HS Code:
57.04
Reference:
41.702
ISSUE NO. 11:  BLEACHING OF FABRICSOPTION A:
37. Prior to bleaching fabric is subjected to the processes of shearing or cropping, singeing,
desizing, scouring and, either before or after bleaching, mercerising.  Bleaching is a controlled
chemical reaction that substantially transforms dirty fabric into clean, absorbent, white fabric free
from all impurities.  The bleached fabric is a commercially different product which is either taken for
further processing such as dyeing or printing or is used as such as a finished product.
OPTION B:
38. Bleaching is a chemical process in which natural colouring matter of textile materials is
removed by bleaching agents.  Bleaching is not a substantial transformation.
Relevant HS Codes:
52.08 to 52.12, 53.09 to 53.11, 54.07 to 54.08, 55.12 to 55.16? 58.01 to 58.04, 58.06, 58.09, 58.11,
59.06, 60.01, 60.02
References:
41.187 (Annex G/1), 41.618
ISSUE NO.12: DYEING, INCLUDING DYEING WHITE
I. OF YARNS CLASSIFIED IN CHAPTER 50 THROUGH 55
*
OPTION A39. Dyeing substantially transforms uncoloured yarn  into coloured yarn.  Dyeing not only adds
great value to the yarn but also transforms the good into a distinct and different commercial product
                                                     
*No proposal was made for dyeing of yarns in Chapter 56.G/RO/41
Page 563
with different uses.  The resulting product has new characteristics and qualities.  This process
permanently change the grey yarn by imparting new characteristics and permanently giving colour or
pattern to the yarns, which gives them final appearance.
40. Dyeing white is the same transformation in technical terms as any other colour.  The fact that
the HS nomenclature classifies dyed white with bleached products for practical classification purposes
is not a basis for deciding substantial transformation.
41. When preparatory or finishing operations are required, the processes such as bleaching,
scouring, tentering, etc. contributing additional characteristics to the final product could be included
as examples in a non-exhaustive list.  The list of preparatory or finishing operations should be an
indicative list in order to allow the development of new processes.
A/1
42. Dyeing alone can be considered as substantial transformation because the dyed good is often
used as a finished product without being subjected to any other processes. (CH)(IND)
A/2
43. Dyeing which is permanent and done in co njunction with two or more preparatory or
finishing operations is a substantial transformation.  The requirement for two or more preparatory orfinishing operations is designed to ensure th at temporary dyeing is excluded. (EGY)(JPN)
A/3
44. Dyeing which is permanent and done in conjunction with preparatory or finishing operation is
a substantial transformation, provided the added value criterion (45 per cent EC, 50 per cent TUR) isalso met. (EC)(TUR)
OPTION B
45. Neither dyeing alone nor dyeing and printing together result in a substantial transformation. A
yarn of one country that is dyed and/or printed in another country should not be considered tooriginate in the latter country. (BRA)(CAN)(COL)(MEX)(US)
Relevant HS Codes
**
50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08, 54.01 to 54.06, 55.08 to 55.11.
II. OF FABRICS AND OTHER TEXTILE ARTICLES
OPTION A46. Dyeing substantially transforms uncoloured fabric (textile article) into coloured fabric (textile
article).  Dyeing not only adds great value to the fabric (textile article) but also transforms the good
into a distinct and different commercial product with different uses.  The resulting product has newcharacteristics and qualities.  The said operations actually transform a raw material, such as a raw
fabric (textile article), unusable as it stands, into a fabric (textile article) that can undergo subsequent
transformations such as making-up.  This process permanently changes the grey fabric (textile article)
                                                     
**Proponents that consider dyeing or printing as substantial transformation do not all propose the same
headings for application of this rule.G/RO/41
Page 564
by imparting new characteristics and permanently giving colour or pattern to the fabrics (textile
article), which gives them final appearance.
47. Dyeing white is the same transformation in technical terms as any other colour.  The fact that
the HS nomenclature classifies dyed white with bleached products for practical classification purposes
is not a basis for deciding substantial transformation.
48. When preparatory or finishing operations are required, the processes such as bleaching,
scouring, tentering, etc. contributing additional characteristics to the final product could be included
as examples in a non-exhaustive list.  The list of preparatory or finishing operations should be an
indicative list in order to allow the development of new processes.
49. A small proportion of textile goods (perhaps 15 per cent of traded goods) are both dyed and
printed, but it is not normal industry practice to carry out both processes.  In any cases, whether
separately or together, dyeing and printing result in a substantial transformation of the raw materials
worked.
A/1
50. Dyeing alone can be considered as substantial transformation because the dyed good is often
used as a finished product without being subjected to any other processes. (CH)(IND)
A/2
51. Dyeing which is permanent and done in conjunction with preparatory or finishing operations
is a substantial transformation. (EC)(TUR)
A/3
52. Dyeing accompanied by at least one preparatory or finishing operation, is considered
substantial transformation for finished fabrics. (HK)(MAL)(PHI)
A/4
53. Dyeing which is permanent and done in co njunction with two or more preparatory or
finishing operations is a substantial transformation.  The requirement for two or more preparatory or
finishing operations is designed to ensure th at temporary dyeing is excluded. (EGY)(KOR)
A/5
54. Dyeing alone do not result in a substantial transformation.  Goods must be both dyed and
printed accompanied by at least two preparatory or finishing operations.  Both operations are
necessary to achieve a substantial transformation and are normal processes in industry. (JPN)
A/6
55. Dyeing alone, with or without other preparatory or finishing operations, does not result in a
substantial transformation.  However, origin is conferred for woven fabrics, when in a single country,
goods are both dyed and printed and two or more of the following operations are performed:bleaching, shrinking, fulling, napping, decatin g, permanent stiffening, weighting, permanent
embossing or moireing. (US)
OPTION BG/RO/41
Page 565
56. Neither dyeing alone nor dyeing and printing together result in a substantial transformation.
A fabric of one country that is dyed and/or printed in another country should not be considered to
originate in the latter country. (BRA)(CAN)(COL)(MEX)
Relevant HS Codes***
Fabrics: 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to 54.08, 55.12 to 55.16,
56.02 to 56.03, 56.06, ex58.01(c) to ex58.04(c), ex58.06(c), ex58.09(b), ex58.11(a),
ex59.03(a), 59.06, 59.07, 60.01, 60.02.
Textiles Articles: ex57.02(a), ex57.03(a), ex58.07(a), ex58.08(a), ex59.05(a), ex59.11(b),
ex-Chapter 61(e), (h), (j), ex-Chapter 62(d), (f), (h).
Reference Documents
41.618, 41.630, 41.702, 41.721,
ISSUE NO.13:  PRINTINGI. OF YARNS CLASSIFIED IN CHAPTERS 50 THROUGH 55
*
OPTION A57. Printing substantially transforms an uncoloured  or dyed yarn into an attractive beautifully
designed yarn.  The resultant product becomes commercially distinct and is put to different andspecific uses.  The resulting product has new characteristics and qualities.  These processes
permanently change the grey yarn by imparting new characteristics and permanently giving colour or
pattern to the yarn, which gives them final appearance.
58. When preparatory or finishing operations are required processes such as bleaching, scouring,
tentering, etc. contribute additional characteristics to the final product.  The list of preparatory orfinishing operations should be an indicative list not exhaustive in order to allow the development of
new processes.
A/1
59. Printing alone can be considered as substantial transformation because the printed goods is
often used as a finished product without being subjected to any other processes. (CH)(IND)
A/2
60. Printing which is permanent and done in conjunction with two or more preparatory or
finishing operations is a substantial transformation.  The requirement for two or more preparatory or
finishing operations is designed to ensure that temporary printing is excluded. (EGY)(JPN)
A/3
                                                     
***Proponents that consider dyeing or printing s substantial transformation do not all propose the same
headings for application of this rule.
*No proposal was made for printing yarns in Chapter 56.G/RO/41
Page 566
61. Printing which is permanent and done in conjunction with preparatory or finishing operations
is a substantial transformation, provided the added value criterion (45 per cent EC, 50 per cent TUR)
is also met. (EC)(TUR)
OPTION B
62. Neither printing alone nor dyeing and printing together result in a substantial transformation.
A yarn of one country that is dyed and/or printed in another country should not be considered to
originate in the latter country. (BRA)(CAN)(COL)(MEX)(US)
Relevant HS Codes**
50.04 to 50.06, 51.06 to 51.10, 52.04, to 52.07, 53.06 to 53.08, 54.01 to 54.06, 55.08 to 55.11.
II. OF FABRICS AND OTHER TEXTILE ARTICLES
OPTION A
63. Printing substantially transforms an uncoloured  or dyed fabric (textile article) into an
attractive beautifully designed fabric (textile article).  The resultant product becomes commercially
distinct and is put to different and specific uses.  The resulting product has new characteristics andqualities.  The said operations actually transform a raw material, such as a raw fabric (textile article),
unusable as it stands, into a fabric that can undergo subsequent transformations such as making-up.
These processes permanently change the grey fabric (textile article) by imparting new characteristics
and permanently giving colour or pattern to the fabrics (textile article), which gives them final
appearance.
64. When preparatory or finishing operations are required, processes such as bleaching, scouring,
tentering, etc. contribute additional characteristics to the final product.  The list of preparatory or
finishing operations should be an indicative list, not exhaustive in order to allow the development of
new processes.
A/1
65. Printing alone can be considered as substantial transformation because the printed good is
often used as a finished product without being subjected to any other processes. (CH)(IND)
A/2
66. Printing which is permanent and done in conjunction with preparatory or finishing operations
is a substantial transformation.  In the case of thermo-printing, which consists of applying motifs
using thermal processes, printing should be accompanied by impregnation of the transfer paper to be
considered a substantial transformation. (EC)(TUR)
A/3
67. Printing, accompanied by at least one preparatory or finishing operation, is considered
substantial transformation for finished fabrics. (HK)(MAL)(PHI)
A/4
                                                     
**Proponents that consider dyeing or printing as substantial transformation do not all propose the same
headings for application of this rule.G/RO/41
Page 567
68. Printing which is permanent and done in conjunction with tow or more preparatory or
finishing operations is a substantial transformation.  The requirement for two or more preparatory or
finishing operations is designed to ensure th at temporary printing is excluded. (EGY)(KOR)
A/5
69. Dyeing or printing alone do not result in a substantial transformation.  Goods must be both
dyed and printed, accompanied by at least two preparatory or finishing operations.  Both operations
are necessary to achieve a substantial transformation and are normal processes in industry. (JPN)
A/6
70. Printing alone, with or without other preparatory or finishing operations, does not result in a
substantial transformation.  However, origin is conferred for woven fabrics, when in a single country,
goods are both dyed and printed and two or more of the following operations are performed:bleaching, shrinking, fulling, napping, decatin g, permanent stiffening, weighting, permanent
embossing or moireing. (US)
OPTION B
71. Neither printing alone nor dyeing and printing together result in a substantial transformation.
A fabric of one country that is dyed and/or printed in another country should not be considered to
originate in the latter country. (CAN)(MEX)(BRA)(COL)
Relevant HS Codes
*
Fabrics: 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to 54.08, 55.12 to 55.16,
56.02 to 56.03, 56.06, ex58.01(c) to ex58.04(c), ex58.06(c), ex58.09(b), ex58.11(a),
ex59.03(a), 59.06, 59.07, 60.01, 60.02.
Textiles Articles: ex57.02(a), 57.03(a), ex58.07(a), ex58.08(a), ex59.05(a), ex-59.11(b),
ex-Chapter 61(e), (h), (j), ex-Chapter 62(d), (f), (h).
Reference Documents
41.618, 41.630, 41.702, 41.721.
ISSUE NO. 14:  DEGREASING GREASY W OOL, (INCLUDING PIECE-WASTED WOOL)
OPTION A:  Yes72. Degreasing of greasy wool is an origin-conferring process provided that an ad valorem
criterion is also met.  Degreasing is one of the most important preparatory operations for wool which
contains a high level of animal fat and dirt particles.  Degreasing results in a new product with new
characteristics.  However, to ensure that any mini mal washing operation is not treated as a substantial
transformation the rule contains the safety valve of an ad valorem  provision.
73. The rule of origin should be
                                                     
*Proponents that consider dyeing or printing as substantial transformation do not all propose the same
headings for application of this rule.G/RO/41
Page 568
- CTH;  or change to this subheading  when this change is attained by degreasing greasy wool,
including piece-wasted wool, the value of which does not exceed 50% of the ex-works price of the
product  (EC, TUR)
OPTION B:  No
74. Degreasing is merely a cleaning process which does not result in a substantial transformation
of the wool.  The origin of the wool degreased, not carbonised, is the country where the wool is
obtained from the animal.  The rule should be :
- CC   (JPN, CH, EGY, COL, KOR, MEX, CAN, US, BRA, NZ, AUS, HK).
Relevant HS Codes:
5101.21, 5101.29
ISSUE No. 15:  CARBONISINGOPTION A:  Yes
75. Wool fibre contains up to 40% by weight of other materials.  Some of these can be removed
by washing, but others require the chemical process of carbonisation which brings about a substantial
transformation of the wool.  If the wool is intended to be combined with other fibres a special
carbonisation process is necessary.
76. The rule of origin should be (EC, TUR) :
for 5101.30
- CTH, or change to this subheading from not carbonised wool, the value of which does not
exceed 50% of the ex-works price of the product.
for ex-51.03(b)
- Change to this split heading from not carbonised waste, the value of which does not exceed
50% of the ex-works price of the product.
OPTION B:  No
77. Carbonising involves merely dipping in acid to eliminate cellulose residues and is not a
substantial transformation. The origin of the carbonised wool (5101.30) is the country where the wool
not carbonised is obtained from the animal.  The origin of the waste is not changed by carbonisation.
78. The rule of origin should be:
for 5101.30  (JPN, CH, EGY, COL, KOR, MEX, CAN, US, BRA, NZ, AUS, HK)
-C C
for ex-51.03(b) (JPN, CH, EGY, COL, KOR, MEX, CAN, US, BRA, TH, NZ, HK)
- The country of origin of the goods of this split heading is the country in which the waste of
this split heading is derived from manufacturing or processing operations or from
consumption.
Relevant HS Codes:
5101.30, ex-51.03(b)G/RO/41
Page 569
ISSUE No. 16: COATING OR IMPREGNATION OF FABRICS IN CHAPTERS 51 TO 55 AND
HEADING 58.09
OPTION A:  Yes79. Coating or impregnation of textile material is normally done to give a special finish like
crease resistance, water proofing, stiffening etc.  The finished auxiliaries, depending on the
requirement, are coated over the fabric by padding mangle technique or otherwise and then treated
under specific conditions to bring the desired effect.  Coating or impregnation substantially transform
fabrics and make the fabrics suitable for different and distinct functional uses.
80. The rule for these split headings should be
- CTHS by coating or impregnation (IND) (NOR)
OPTION B:  No
81. Coating or impregnation of these fabrics does not change the essential character of the fabric.
There is no substantial transformation.  The coated fabric has origin in the country where the fabric is
woven.
82. The rule should be the same as is proposed for fabrics not coated or impregnated of the same
headings.  (JPN, CH, EGY, COL, EC, KOR, MEX, CAN, US, TUR, NZ, TH, HK, AUS) and (PHI)
(MAL) for ex-5809(c) only
Relevant HS Codes:
ex-51.11(a), ex-51.12(a), ex-51.13(a), ex-52.08( a) to ex-52.12(a), ex-53.09(a) to ex-53.11(a),
ex-54.07(a), ex-54.08(a), ex-55.12(a) to ex-55.16(a), ex58.09(c)
ISSUE No. 17:  CUTTING PLASTIC SHEET OF HEADINGS 39.20 AND 39.21 INTO YARNS OR
STRIP
OPTION A:  Yes
83. Obtaining synthetic or artificial monofilament yarn or strip and the like by cutting from
plastic sheet is a substantial transformation.  A new product is obtained with different uses and
characteristics.
84. The rule, as already submitted to the Committee on Rules of Origin for ex-54.04(c) “Other”,
should be: (CH, COL, KOR, IND, MEX, CAN, TUR)
- CTH, except from heading 54.01 or 54.06
OPTION B:  No85. Cutting plastic sheet into yarns or strip is a simple cutting process.  There is no substantial
transformation.  The origin of these goods obtained by cutting from plastic sheet should be the
country of origin of the plastic sheet:
- CTH, except from heading 39.20 or 39.21  (US, EGY, BRA, EC, JPN, NZ, AUS)
Relevant HS Codes:
ex-54.04(a), ex-54.05(a) (of the second set of splits of these headings)G/RO/41
Page 570
ISSUE No. 18:  IMPREGNATION, COATING, COVERING OR LAMINATION OF Yarns,
FABRICS, WOVEN, FELT AND NONWOVEN IN CHAPTER 56 AND HEADINGS 58.01 TO
58.04, 58.06, 58.11
OPTION A:  Yes
86. Impregnation, coating, covering or lamination of yarns, fabrics and textile articles is normally
done to give a special finish such as water-proofing, crease or shrink resistance, stiffening etc.
Special coating, covering or impregnation creates a microporous structure in fabric for use, for
example, for surgical gowns to allow evaporation of perspiration whilst providing protection from
infection.
87. The result of impregnation, coating, covering or lamination, whether or not visible to the
naked eye, is that the goods are substantially transformed and have become suitable for different anddistinct functional uses.
88. Although different terminology is used, the rules proposed provide for substantial
transformation of the goods that remain classified within the relevant headings
The rule as proposed by the countries indicated for ex-56.02(a) and ex-56.03(a) should be:
- CTHS (CH) (IND) (NOR)
The rule as proposed by the countries indicated for ex-58.01(a) to ex-5804(a), ex-5806(a)  should be:- Change to fabrics impregnated, coated or covered of this heading from fabrics not
impregnated, coated or covered of the same heading (KOR) (IND) (NOR)]
OPTION B:  Yes, provided- Treating only part of the surface of textiles by impregnation, coating, covering or lamination
is not sufficient to confer origin.  It is necessary to meet the additional requirements that one
side of the article should be wholly impregnated, coated, covered or laminated and the result
should be visible to the naked eye.  The criterion of visibility provides a safety valve to
exclude minimal operations from conferring origin.  Some types of coating, not visible to the
naked eye, are merely finishing operations and should be excluded from the rule.
The rule for felt of ex-56.02(a) and nonwoven of ex-56.03(a) should be:- Change to [felt] [nonwoven] impregnated, coated, covered or laminated of this heading from
[felt] [nonwoven] not impregnated, coated, covered or laminated of the same heading,
provided that one side of the [felt] [nonwoven] is wholly impregnated, coated, covered or
laminated and such impregnating, coating, covering or laminating can be seen with the nakedeye. (JPN) (PHI) (MAL)
The rule for ex-58.01(a) , ex-58.02(a), ex-5804(a) should be:- Change to [fabric] [tulles, other net fabrics or lace] impregnated, coated, covered or laminated
with plastics, rubber or other substances of this heading from [fabric] [tulles, other net fabrics
or lace] not impregnated, coated, covered or laminated of the same heading, provided that one
side of the fabric is wholly impregnated, coated, covered or laminated and such impregnating,
coating, covering or laminating can be seen with the naked eye. (JPN) (PHI) (MAL)G/RO/41
Page 571
OPTION C:  Yes, provided
- Impregnation, coating, covering or lamination, whether or not visible to the naked eye, should
only be considered as a substantial transformation if production involves all stages of
fabrication from unbleached fabric.  This criterion ensures that minimal operations do not
confer origin.  The question of visibility is not relevant to the determination of substantialtransformation.  Some “invisible” treatments can render a fabric rigid.
The rule for felt of ex-56.02(a), nonwovens of ex-56.03(a) should be:
- Change from fibres of any other heading; or
- Change to this split heading from unbleached [felt] [nonwovens] (EC) (TUR)
The rule for fabrics of ex-58.01(a) to ex-5804(a), ex-58.06(a) and for quilted materials of ex-58.11(b)
should be:
- Change to this split heading from unbleached fabrics [felt or nonwovens] of any other
heading (EC) (TUR)
OPTION D:  No
89. Impregnation, coating, covering or lamination, whether or not visible to the naked eye, does
not result in a substantial transformation.  The operations do not substantially change the product into
a new product.  The origin of the goods should be the same country of origin of the fabrics beforebeing treated by these processes.
90. However, in the context of the specific products covered by this issue, and by other issues that
deal with the impregnation, coating, covering or lamination of textiles, it is important to note that for
different products countries have different opinions or propose different rules as indicated below.
The rule for ex-56.02(a), ex-56.03(a) should be:
- CTH (AUS) (CAN) (MEX) (US) (COL) (BRA) (TH) (NZ) (AUS)The rule for ex-58.01(a) to ex-58.04(a), should be:
- CTH (AUS) (CH) (EGY) (CAN) (MEX) (US) (COL) (NZ) (BRA) (TH) (AUS) [_(JPN)
(PHI) (MAL) for 58.03(a) ]
The following alternatives under this option for ex-58.06(a) are maintained pending a decision on the
appropriate terminology for the rule for ex-58.06(d) :
- CTH (COL) (PHI) (MAL) (TH) (BRA)- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07, 54.08
or 55.12 to 55.16 or 58.01  (MEX) (US) (NZ) (JPN) (EGY) (CAN) (AUS) [and_58.02 to
58.03 (MEX) (US) (NZ) (JPN) (E GY)]  [ 58.04, 58.05 (JPN) (EGY) ]
The rule for ex-58.11(b) should be:
- CTH (CH) (EGY) (COL) (BRA) (TH) (KOR) (JPN) (PHI) (MALG/RO/41
Page 572
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 56.02 to 56.03, 58.03, 58.06, 58.09 to 58.10, 59.03, 59.07, 60.01, 60.02
or subheading 6307.90 (MEX) (US) (CAN)
Also supporting OPTION D:  (HK)
Relevant HS Codes:
OPTION A:  ex-56.02(a), ex-56.03(a), ex-58.01(a) to ex-5804(a), ex-58.06(a)
OPTION B:  ex-56.02(a), ex-56.03(a), ex-58.01(a), ex-58.02(a), ex-5804(a)
OPTION C:  ex-56.02(a), ex-56.03(a), ex-58.01( a) to ex-5804(a), ex-58.06(a), ex-58.11(b)
OPTION D:  ex-56.02(a), ex-56.03(a), ex-58.01( a) to ex-5804(a), ex-58.06(a), ex-58.11(b)
ISSUE No. 19:  APPLYING A TEXTILE COVERING TO RUBBER THREAD AND CORDOPTION A:  Yes91. Applying a textile covering to rubber thread and cord is a substantial transformation.  It is a
complex process which results in a different product with new characteristics.  The rule should be:
- CTH (JPN, CH, EGY, PHI, MAL, COL, EC, KOR, CAN, BRA, TUR, IND, TH, HK)
OPTION B:  No92. Rubber thread and cord are not considered to have undergone a substantial transformation
when textile yarns are applied.  The goods have origin in the country where the textile yarn is
produced.  The rule proposed is:
- CTH, except from heading 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06 or 55.08 to 55.11 (US) (MEX) (AUS)
Relevant HS Codes:
Part of heading 56.04 (rubber thread and cord, textile covered)
ISSUE No. 20:  IMPREGNATION, COATING, COVERING OR SHEATHING WITH RUBBER
OR PLASTICS THE TEXTILE YARN AND STRIP AND THE LIKE OF HEADING 54.04 OR54.05
OPTION A:  Yes93. Processing the textile yarn and strip and the like of heading 54.04 or 54.05 by impregnation,
coating, covering or sheathing with rubber or plas tics is a substantial transformation.  The rule should
be
- CTH  (JPN, CH, EGY, PHI, MAL, COL, EC, KOR, CAN, BRA, TUR, IND, TH, HK)
OPTION B:  No94. Textile yarn or strip impregnated, coated, covered or sheathed with rubber or plastics has not
been substantially transformed.  The origin should be the country of origin of the yarn or strip or the
like.  The rule should be:
- CTH, except from headings 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06, 55.08 to 55.11   (US, MEX) (AUS)G/RO/41
Page 573
Relevant HS Codes:
Part of heading 56.04 (textile yarn and strip and the like of heading No. 54.04 or 54.05, impregnated,
coated, covered or sheathed with rubber or plastics)56.04, ex 56.06
ISSUE No. 21:  METALLISED YARNS, STRIPS AND THE LIKEOPTION A:  Yes95. Combining yarns of chapters 50 to 55 with metal to produce a metallised yarn is a substantial
transformation which results in a new product with new characteristics.  The rule should be
- CTH (JPN, CH, EGY, PHI, MAL, COL, EC, KOR, CAN, BRA, TUR, IND, TH, HK)
OPTION B:  No
96. Combining yarns of chapters 50 to 55 with metal to produce a metallised yarn or producing
yarn metallised by coating with powder are not considered as substantial transformation.  These yarns
have origin in the country where they are produced from fibres.  The rule should be:
- CTH, except from heading 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06,55.01, 55.02 or 55.08 to 55.11 (MEX, US) (AUS)
Relevant HS Codes:
56.04, 56.05, ex 56.06
ISSUE No. 22:  PRODUCING CHENILLE YARN , FLOCK CHENILLE YARN, GIMPED YARN,
LOOP WALE YARN
OPTION A:  Yes97. Chenille yarn is a special yarn with fibres protruding on all sides.  It is produced by first
weaving a fabric with a tightly twisted, strong wa rp and with silk, wool, rayon, cotton or man-made
fibre filling.  The subsequent processing is more s ubstantial than merely cutting.  The warps are taped
in groups and the fillings are beaten in very clos ely.  After weaving this special fabric is cut
lengthways between each of these groups of warp yarns to produce the chenille yarn which is then
twisted and drawn.  Weaving the special fabric is an intermediate process.
98. Production of the chenille yarn, other than flock chenille yarn is considered to be a substantial
transformation.  In addition one of the alternative proposals considers that production not only of the
chenille yarn, other than flock chenille yarn is considered to be a substantial transformation, but also
production of flock chenille yarn and the other yarns of this heading.
99. The options for rules proposed by the following groups of countries are:
for all yarns of the heading:
- CTH (CH, MAL, COL, EC, KOR, BRA, TUR, IND, TH)
only for chenille yarn, other than flock chenille yarn:
- CTH (JPN, MEX, PHI, CAN)
OPTION B:  NoG/RO/41
Page 574
100. Producing chenille yarn from fabrics or other products is not a substantial transformation.
The weaving of the fabric is the last substantial transformation, but separation of the yarns from the
fabric by merely cutting is a simple process.  The country of origin of chenille yarn, other than flock
chenille yarn is the country of origin of the fabric.  Similarly, producing flock chenille yarn by
attaching flocking fibres to other yarn is not substantial transformation.  The origin of the goods is the
country where the yarn is first produced.
101. The rules should be:
for chenille yarn, other than flock chenille yarn:
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08 or 55.12 to 55.16 or from Chapter 58 (US) (EGY) (AUS), (HK)
for other yarns of this heading:
- CTH, except from heading 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06 or 55.08 to 55.11 (US) (EGY) (JPN, MEX, PHI, CAN), (AUS), (HK)
Relevant HS Codes:
56.04, 56.06, ex 56.06, ex 56.06
ISSUE No. 23:  MAKING TWINE, CORDAGE, ROPES AND CABLES (NOT PLAITED OR
BRAIDED AND NOT IMPREGNATED COATED, COVERED OR SHEATHED WITH RUBBER
OR PLASTICS) FROM YARN
OPTION A:  Yes102. Making twine, cordages, ropes and cables from yarn is a substantial transformation.  The
twine, cordage, ropes and cables have new characteristics and properties quite distinct from the yarn
used in its production.  They can, in particular, be made from waste.  The rule should be:
- CTH  (EC, CH, COL, MAL, TUR, IND, TH, AUS, HK)
OPTION B: No103. The yarn has not been substantially transformed when used to make twine, cordage, ropes and
cables.  The origin should be the country of origin of the yarn.  The options for the rule propose toexclude slightly different groups of headings as indicated below by the use of square brackets :
- CTH, except from headings 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06, 55.08 to 55.11 (JPN, EGY, CAN, KOR, MEX, US, BRA) [53.05 (PHI) ],
[56.04 (MEX, US, BRA, PHI) ]
Relevant HS Codes:
ex-56.04, 56.07(a)
ISSUE No. 24:  IMPREGNATION, COATING, COVERING OR SHEATHING THE TWINE,
CORDAGE, ROPES AND CABLES OF HEADING 56.07 WITH RUBBER OR PLASTICS
OPTION A:  Yes, provided- Processing the twine, cordage, ropes and cables of this heading by impregnation, coating,
covering or sheathing with rubber or plastics is  a substantial transformation, provided that two
supplementary conditions are also met:G/RO/41
Page 575
- it is wholly impregnated, coated, covered or sheathed with rubber or plastics, and
- the impregnation, coating, covering or sheathing can be seen with the naked eye.
104. The rule should be, for ex-56.07(b):
-C T H ;   o r
- Change to twine, cordage, rope and cables  impregnated, coated, covered or sheathed  with
rubber or plastics of this split heading from twine, cordage, rope and cables not impregnated,
coated, covered or sheathed with rubber or plastics of the same heading, provided that the
change is the result of being wholly impregna ted, coated, covered or sheathed with rubber or
plastics and such impregnating, coating, covering or sheathing can be seen with the naked
eye. (JPN)
105. [ paragraph deleted (Sec) ]
OPTION B:  No
106. Impregnating, coating, covering or sheathing with  rubber or plastics the twine, cordage, ropes
and cables of this heading is not a substantial transformation.  One alternative option for the rule
proposes that the origin should be the country of orig in of the twine, cordage, ropes and cables of this
heading, the other option considers that it should be the country of originotrigin of the yarn. The
second option for the rule excludes slightly different groups of headings as indicated below by the use
of square brackets:
for ex-56.07 (b) and ex-56.07(c):
- CTH  (EC, CH, COL, MAL, TUR, IND,  TH) [ and (JPN) for ex-56.07(c) only ]
- CTH, except from headings 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06, 55.08 to 55.11 (EGY, CAN, KOR, MEX, US, BRA, AUS) [53.05 (PHI) ]
Relevant HS Codes:
ex-56.07 (b) and ex-56.07(c)
ISSUE No. 25: IMPREGNATION, COATING OR COVERING KNOTTED NETTING OF TWINE,
CORDAGE OR ROPE
OPTION A:  Yes, provided107. Impregnating, coating or covering the knotted netting of twine, cordage or rope of this
heading is a substantial transformation, provided that it is wholly impregnated, coated or covered and
the impregnation, coating or covering can be seen with the naked eye.  The rule should be :
-C T H ;   o r
Change to twine, cordage, rope and cables  impregnated, coated or covered of this split
heading from twine, cordage, rope and cables not impregnated, coated, covered or sheathed
with rubber or plastics of the same heading, prov ided that the change is the result of being
wholly impregnated, coated, covered or sheathed with rubber or plastics and such
impregnating, coating, covering or sheathing can be seen with the naked  eye. (JPN)
OPTION B:  NoG/RO/41
Page 576
108. Impregnating, coating or covering the knotted netting of twine, cordage or rope of this
heading is not a substantial transformation. The origin should be the country of origin of the knotted
netting of twine, cordage or rope of this heading.  The rule should be:
- CTH  (US, CAN, EC, CH, COL, MAL, TUR,  IND, TH, EGY, PHI, KOR, BRA, NOR, MEX,
PAK, AUS)
Relevant HS Code:
ex-56.08(a)
ISSUE No. 26:  MAKING UP FISHING NETS AND OTHER MADE UP NETS FROM KNOTTED
NETTING OF THE SAME HEADING
OPTION A:  Yes109. Production of made up fishing nets and other made up nets from knotted netting classified in
the same heading is a substantial transformation which results in a product with new characteristics to
fulfil specialised uses.
110. The options proposed for the rule are:
- CTHS, except from heading 58.04 3 (CAN)
Another proposal is:  making up fishing nets and other made up nets from knotted netting of heading
56.08 or from goods of heading 58.04 is an origin-conferring substantial transformation (US), the rule
should be:
- Change from netting to made up nets provided the assembly is carried out wholly in one
country (US) (NOR) (MOR) (HK) (AUS)
OPTION B:  No
111. The change from knotted netting to fishing nets and other made up nets is not a substantial
transformation.  The origin of the nets is the country of origin of the knotted netting of the same
heading or the country in which the nets are made up from twine, cordage or rope.
112. The options proposed for the rule are:
- CTH. (EGY) (PHI) (MAL) (CH) (COL) (EC) (TUR) (KOR) (BRA) (IND) (MEX)
- CTH, except from heading 58.04 (JPN)
Relevant HS Code:
ex-56.08(c)
ISSUE No. 27:  MAKING UP FISHING NETS AND OTHER MADE UP NETS FROM TULLES
OR OTHER NET FABRICS OR LACE OF HEADING 58.04
OPTION A: Yes
                                                     
     3See next Issue concerning change from 58.04G/RO/41
Page 577
113. The change from tulles or other net fabrics or lace to fishing nets and other made up nets is a
substantial transformation.
114. The options proposed for the rule are:
- CTH. (EGY) (PHI) (MAL) (CH) (COL) (EC) (TUR) (KOR) (BRA) (IND) (MEX) (TH)
Another proposal is:  making up fishing nets and other made up nets from knotted netting of heading
56.08 or from goods of heading 58.04 is an origin-conferring substantial transformation (US), the rule
should be:
- Change from netting to made up nets provided the assembly is carried out wholly in one
country (US) (NOR ) (MOR) (AUS) (HK)
OPTION B: No115. Making up fishing nets or other made up nets from tulles or other net fabrics or lace of
heading 58.04 is not a substantial transformation.  The rule should be:
- [CTHS (CAN) ] [CTH (JPN) ], except from heading 58.04 (JPN CAN))
Relevant HS Code:
ex-56.08(c)
ISSUE No. 28:  OBTAINING OTHER ARTICLES OF YARN, STRIP OR THE LIKE, TWINE,
CORDAGE, ROPE OR CABLES
OPTION A:  Yes116. The manufacture of articles of heading 56.09 from yarn, strip or the like (54.04, 54.05), or
twine, cordage, rope or cables (56.07), except by mere cutting, is a substantial transformation.  Newproducts are obtained. The rule should be :
- CTH. (JPN) (CH) (EGY) (PHI) (MAL) (COL) (EC) (KOR) (BRA) (TUR) (IND) (MAL)
(PAK) (TH) (HK)
OPTION B:  No117. The operations to obtain these articles are not substantial, in some cases involving merely
cutting the twine, cordage etc.  The origin of the goods is the country of origin of the yarn, strip, twine
etc. used.  The rule should be
- CTH, except from heading 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06, 55.08 to 55.11 or 56.04 to 56.07.  (CAN) (MEX) (US) (AUS)
Relevant HS Code:
56.09
ISSUE No. 29: IMPREGNATION, COATING OR COVERING OF TEXTILE ARTICLES IN
HEADINGS 58.07, 58.08
OPTION A:  Yes, providedG/RO/41
Page 578
- Impregnation, coating or covering labels, badges, braids, trimmings, tassels, pompons and
similar articles of textile materials can only be considered as a substantial transformation if
production involves all stages of fabrication from unbleached fabric, whether woven,
nonwoven or felt.  This criterion ensures that minimal operations do not confer origin.
The rule for ex-58.07(b), ex-58.08(b) should be:- Change to this split heading from unbleached fabrics, felt or nonwoven of any other heading
(EC) (TUR)
OPTION B:  No118. Impregnation, coating or covering of these articles does not result in a substantial
transformation.  The operations do not substantially change the article into a new product.  The origin
of these articles is the country in which they first became classified in the relevant heading.  Different
proposals for the rule reflect alternative additional criteria proposed by different groups of countries
for these textile articles whether or not they have been impregnated, coated or covered.  The countries
concerned are identified for each option.  The rules proposed are examined in more detail in therelevant issues 30, 31, 32.
The proposals under this option for ex-58.07(b) are:
- CTH (CH) (COL) (KOR) (PHI) (MOR) (IND) (EGY) (TH) (BRA) (PAK) (NZ)
- CTH, provided that the change is the result of being wholly covered or decorated with
inscriptions or motifs. (JPN)
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 56.02 to 56.03, 58.03, 58.06, 58.09 to 58.10, 59.03, 59.07, 60.01, 60.02or subheading 6307.90 (MEX) (US) (CAN) (AUS)
The proposals under this option for ex-58.08(b) are:- CTH (CH) (COL) (KOR) (IND) (EGY) (JPN) (PHI) (BRA) (TH) (PAK) (NZ)- CTH, except from heading 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06 or 55.08 to 55.11 for braids of this split heading;
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16 or 56.02 to 56.03 for ornamental trimmings of this split heading;
- CTH for tassels, pompons and similar articl e of this split head ing (US) (MEX) (AUS)
- CTH for braids and ornamental trimmings of this split heading;- CTH except from heading 50.04 to 50.05, 51.06 to 51.09, 52.04 to 52.06, 53.06 to 53.08,
54.01 to 54.05, 55.08 to 55.10 or 56.04 to 56.06 for tassels, pompons and similar article of
this split heading (CAN)
Relevant HS Codes:
ex-58.07(b), ex-58.08(b)
ISSUE No. 30:  MAKING LABELS, BADGES AND SIMILAR ARTICLES OF TEXTILE
MATERIALS, NOT EMBROIDERED, FROM FABRIC
OPTION A:  YesG/RO/41
Page 579
119. Making labels, badges and similar articles of textile materials, not embroidered, is in all cases
a substantial transformation.  The article is in all cases a new product.  The rule should be
- CTH  (CH) (COL) (KOR) (PHI) (MOR) (IND) (EGY) (TH) (BRA) (PAK) (HK)
OPTION B:  Yes, provided
- The labels, badges etc. have origin in the country where they are produced provided that they
are wholly covered or decorated with inscriptions or motifs.  Otherwise they have origin of
the country in which the fabric was produced.  The rule should be
- CTH, provided that the change is the result of being wholly covered or decorated with
inscriptions or motifs.  (JPN)
OPTION C:  No120. Labels, badges and similar articles of textile materials when obtained from fabric have not
undergone a substantial transformation.  One of the alternative proposals considers that the goods
have the origin of the country in which they undergo all stages of processing from yarn.  The other
option is that they have the origin of the country of origin of the fabric used.
121. The options for the rule are:
- Change to this split heading from yarn of any other heading (EC) (TUR)
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 56.02 to 56.03, 58.03, 58.06, 58.09 to 58.10, 59.03, 59.07, 60.01, 60.02or subheading 6307.90 (MEX) (US) (CAN) (AUS)
Relevant HS Codes:
58.07
ISSUE No. 31:  MAKING BRAIDS, TASSELS, POMPONS AND SIMILAR ARTICLES FROM
YARN
OPTION A:  Yes
122. Obtaining these textile articles from yarn is a substantial transformation.  The new products
are completely different from the yarn used and have specific characteristics and uses.  However,
proposals differ concerning the products to which this option is applicable.  The rules proposed by the
countries indicated are :
- CTH   (CH) (COL) (KOR) (IND) (EGY) (JPN) (PHI) (BRA) (TH) (PAK) (HK)
- CTH for braids only of this split heading; (CAN)
- CTH for tassels, pompons and similar articles only of this split heading (US) (MEX) (AUS)- Change to this split heading from yarn of any other heading.  (EC)
OPTION B:  No123. These textile articles have origin of the country in which the yarn is produced from fibres.
The rules proposed by the countries indicated for these textile articles exclude change from filaments,
yarns, thread or strip.G/RO/41
Page 580
for braids of this split heading :
- CTH, except from heading 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06 or 55.08 to 55.11; (US, MEX)
for tassels, pompons and similar article of this split heading:
- CTH except from heading 50.04 to 50.05, 51.06 to 51.09, 52.04 to 52.06, 53.06 to 53.08,
54.01 to 54.05, 55.08 to 55.10 or 56.04 to 56.06 (CAN)
Relevant HS Codes:
58.08.10, 5808.90
ISSUE No. 32:  MAKING ORNAMENTAL TRIMMINGS IN THE PIECE, WITHOUT
EMBROIDERY FROM FABRIC (OTHER THAN KNITTED OR CROCHETED)
OPTION A:  Yes124. Obtaining ornamental trimmings from fabric is a substantial transformation.  Much more than
cutting is required to produce these new and distinct products. The rule proposed by the countriesindicated is :
- CTH (CH) (COL) (KOR) (IND) (EGY) (JPN) (PHI) (BRA) (TH) (PAK) (CAN) (HK)
OPTION B:  No
125. Making ornamental trimmings from existing fabric is not a substantial transformation.  The
rules proposed by the countries indicated for these te xtile articles exclude change from fabrics.  The
first option would require both fabric-making and making of the ornamental trimmings to take place
in one country.  The second would determine the origin of the goods as the country of origin of the
fabric used.
- Change to this split heading from yarn of any other heading (EC) (TUR)
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16 or 56.02 to 56.03 for ornamental trimmings of this split heading; (US,
MEX) (AUS)
Relevant HS Codes:
58.08.10, 5
ISSUE No. 33:  EMBROIDERY WITHOUT VISIBLE GROUNDOPTION A:  Yes
126. Embroidery without visible ground is a completely new product with special and distinct
characteristics.  The ground fabric has disappeared and has undergone a substantial transformation
into a new product as a result of embroidery.  The rule should be:
- CTH.   (CH) (COL) (KOR) (PHI) (MOR) (IND) (TH) (BRA) (EGY) (PAK) (CAN) (MEX)
(US) (GUA) (JPN) (AUS) (HK)
OPTION B:  Yes, provided- The embroidered fabric undergoes a substantial transformation provided the value added by
embroidery represents at least 50% of the ex-works price of the goods.  The ad valorem  ruleG/RO/41
Page 581
avoids the risk of origin being conferred by partial or “minimal” embroidery.  The rule should
be:
- Change to this heading if the value of non-originating materials does not exceed 50% of the
ex-works price of the product (EC) (TUR)
Relevant HS Code
ex-58.10(a)
ISSUE No. 34:  EMBROIDERY IN STRIPS OR IN MOTIFS4, INCLUDING THOSE ON SILK
FABRIC
OPTION A:  Yes127. Embroidery in strips and motifs are completely new products with special and distinct
characteristics.  The ground fabric, including silk fabric, has undergone a substantial transformation
into a new product.  The rule should be:
- CTH.  (CH) (COL) (KOR) (PHI) (MOR) (IND) (TH) (BRA) (PAK) (CAN) (MEX) (US)
(GUA) (AUS)  (HK)
OPTION B:  Yes, provided
- The embroidered fabric undergoes a substantial transformation provided the value added by
embroidery represents at least 50% of the ex-works price of the goods.  The ad valorem  rule
avoids the risk of origin being conferred by partial or “minimal” embroidery.  The rule shouldbe:
- Change to this heading if the value of non-originating materials does not exceed 50%
of the ex-works price of the product (EC) (TUR) (EGY)
OPTION C:  No for silk128. Embroidery in strips and motifs represents a substantial transformation except when the
ground material is silk.  The character of the embroidery on silk is determined by the silk fabric and is
never a substantial transformation.  The origin of strips and motifs on a silk ground material is the
country of origin of the silk fabric which does not change its character as a result of the embroidery.
The rule should be:
- CTH, except from heading 50.07. (JPN)
Relevant HS Codes:
ex-58.10(b)
                                                     
     4Definition of embroidery in strips or in motif:
Chapter Note to Chapter 58:
For the purposes of heading 58.10 embroidery  in strips or in motifs means:a) embroidered fabric not exceeding 30 cm in width (strips);b) embroidery in a motif, whether or not rectangular in shape, which is capable of being enclosed in a square or
rectangular frame the area of which is no more than 1 square meter.G/RO/41
Page 582
ISSUE No. 35 : OTHER EMBROIDERY
OPTION A:  Yes129. Fabric undergoes a substantial transformation by embroidery.  The rule should be:
CTH. (COL) (KOR) (MOR) (IND) (TH) (BRA) (GUA)
OPTION B:  Yes, provided130. The embroidered fabric undergoes a substantial transformation provided the value added by
embroidery represents at least 50% of the ex-works price of the goods.   The ad valorem rule resolves
the problem raised of partial or “minimal” embroidery. (EC) (TUR) (EGY)
OPTION C: Yes, provided
131. The fabric undergoes a substantial transformation in the country of embroidery provided the
quantity of the patterns made by embroidery is sufficient to confer the origin.
The first two rules proposed are based on the combination of weight and surface criteria.
while the other two are based on distance criterion.
132. The alternative rules are:
• The country of origin of the goods of this heading shall be the country of embroidery
provided  the weight of the embroidery exceeds 25 % of the total weight of the fabric and there isno unembroidered area greater than that which can be enclosed within a square the side of which
is 7 cm (US)(MEX)
• The country of origin of the goods of this heading shall be the country of embroidery
provided  the weight of the embroidery thread ex ceeds 20 % of the total weight of the fabric and
there is no unembroidered area greater than that which can be enclosed within a square the side of
which is 7 cm (CAN)
• The country of origin of the goods of this heading shall be the country of embroidery
provided the distance between the edge of plain fabric and the embroidery pattern, or between
patterns is not more than 80 cm (CH) (PAK) (PHI)
• The country of origin of the goods shall be the country of embroidery, provided the distance
between the edge of plain fabric and the embroidery pattern, or between patterns is not more than
80 cm  when the ground fabric is not silk (JPN)
Relevant HS Code:
ex-58.10(c)
ISSUE No. 36:  MAKING QUILTED TEXTILE MATERIALS IN THE PIECE FROM FABRIC
OPTION A:  Yes
133. Quilted materials in the piece are composed of layers of textile material assembled with
padding and held together by stitching or other means.  A new product is obtained with special
characteristics.  The original fabrics have undergone a substantial transformation.  The rule should beG/RO/41
Page 583
- CTH. (CH) (EGY) (COL) (BRA) (TH) (KOR) (JPN) (PHI) (MAL) (IND) (AUS) (HK)
OPTION B:  No
134. Quilting is not a complex or difficult process.  It is a rather simple operation whereby several
layers of fabric are held together by stitching or other means. Different proposals consider that quilted
materials have the origin of the country of origin of the fabric used, or the country in which all stagesof production from yarn to the final product are carried out.  The following proposals have been
made:
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.03, 58.06, 58.09 , 58.10, 59.03, 59.07, 60.01, 60.02, or
subheading 6307.90 (MEX) (US) (CAN)
- Change to this split heading from yarn of any other heading. (EC, TUR)
Relevant HS Code:
58.11
ISSUE No. 37: COATING, COVERING, IMPREGNATION OR LAMINATION OF TEXTILE
YARNS, FABRICS, WHETHER OR NOT IT CAN BE SEEN WITH THE NAKED EYE, TOPRODUCE GOODS OF CHAPTER 59
OPTION A:  Yes
135. Impregnation, coating, covering or lamination of textile yarns, fabrics, whether or not visible
to the naked eye, results in a substantial transformation.  The result is a new product with new
characteristics.  The distinction in the HS nomenclature for headings 59.03 and 59.07 where only
treatments visible to the naked eye are classified is to facilitate classification and is not relevant to thedetermination of whether a substantial transformation has occurred.
When the coating, covering or impregnation is visible to the naked eye fabrics are classified in
Chapter 59.)
The rules should be:
- CTH for the headings specified below :
59.01  (CH, COL, KOR, CAN, IND, SEN, JPN, NOR, EGY, PAK, HK)ex-59.03(b)  (CH, COL, KOR, E GY, BRA, PAK, IND, NOR, HK)
59.06 (CH, COL, KOR, CAN, EGY, BRA, PAK, NOR, HK)ex-59.07(c) (CH, COL, KOR, EGY, BRA, IND, PAK, HK)
or,
for 59.06- CTH, or change within the heading by bleaching, dyeing, printing, coating or impregnation
(IND)
OPTION B:  Yes, providedG/RO/41
Page 584
- Impregnation, coating, covering or  lamination, whether or not visible to the naked eye, should
only be considered as a substantial transformation if production involves all stages offabrication from unbleached fabric.  This criterion ensures that minimal operations do notconfer origin.  The question of visibility is not relevant to the determination of substantialtransformation.
136. The rule should be, for 59.01, 59.03, 59.06, 59.07:
- Change to this heading from unbleached fabrics of any other heading (EC TUR)
OPTION C:  Yes, provided- Some impregnation, coating, covering or lamination of fabrics gives textiles new
characteristics and uses and is regarded as substantial transformation, but minor coating orimpregnation also exists.  Clear criteria are needed to exclude minor coating or impregnationfrom resulting in a substantial transformation.  A requirement that the treatment be visible
with the naked eye ensures that such minor processes do not confer origin.
137. Treating only part of the surface of textiles is not sufficient to confer origin and it is necessary
to meet the additional requirement that “one side of the article should be wholly impregnated, coated,
covered or laminated with plastics”.
138. The rules proposed for 59.03 and 59.07, where only treatments that can be seen with the
naked eye are classified, and for rubberised textile fabrics of 59.06 are:
for 59.03
- CTH, provided that one side of the article is wholly impregnated, coated, covered or
laminated. (JPN)
- CTH, provided that one side of the article is wholly impregnated, coated, covered or
laminated with plastics and such impregnation,  coating, covering or lamination can be seen
with the naked eye. (PHI)
for 59.06
- CTH, provided that one side of the article is wholly impregnated, coated, covered or
laminated (JPN) (PHI)
for 59.07
- CTH, provided that one side of the article is wholly impregnated, coated, covered or
laminated (JPN)
- CTH, provided that one side of the article is wholly impregnated, coated, covered or
laminated with plastics and such impregnation,  coating, covering or lamination can be seen
with the naked eye. (PHI)
OPTION D:  Yes for 59.03, provided- The goods can be considered as having undergone a last substantial transformation, provided
that, for woven fabrics, the impregnation, coating, covering or lamination constitutes 15% ormore by weight of the good and for knitted or  crocheted fabrics, th e impregnation, coating,
covering or lamination constitute s 20% or more by weight of  the good.  Otherwise the goods
are not considered to have undergone a substantial transformation and would retain thecountry of origin of where the original fabric was produced.G/RO/41
Page 585
139. The rule for ex-5903(b) should be:
- A change to a woven fabric of this split heading from any other heading, provided that the
impregnation, coating, covering or lamination constitutes 15 per cent or more by weight ofthe good; or
- A change to a knitted or crocheted fabric of this split heading from any other heading,
provided that the impregnation, coating, covering or lamination constitutes 20 per cent ormore by weight of the good. (CAN)
OPTION E:  No
140. Impregnation, coating, covering or lamination, whether or not visible to the naked eye, does
not result in a substantial transformation.  The operations do not substantially change the product intoa new product.  Given the great range of coatings that might be applied and the fact that some are
barely detectable, such goods should be considered to originate in the country where the
fabric-making process occurs.
141. The origin of such goods is the country of origin of the fabric.
142. The rules should be:
for 59.01
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.03, 58.06,  58.08 or 60.02 (MEX) (US) (AUS)
for 59.03
- CTH except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.03, 58.06, 58. 08 or 60.02 (MEX) (US)  (AUS) and,
- (CAN) for 59.03 if Option D is not met:- CTH except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.03, 5806. 10 to 5806.39, 58.08 or 60.02 (CAN)
for 59.06
- CC, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.03, 58.06,  58.08 or 60.02 (MEX) (US) (AUS)
for 59.07
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.03, 58.06, 58. 08 or 60.02 (MEX) (US) (CAN) (AUS)
Relevant HS Codes:
59.01, 59.03, 59.06, 59.07
ISSUE No.38:  PRODUCTION OF LINO LEUM AND OTHER FLOOR COVERINGS ON A
TEXTILE BACKING USING TEXTILE FABRICS
OPTION A:  YesG/RO/41
Page 586
143. Production of linoleum, other floor coverings on a textile backing is a substantial
transformation.  The textile fabrics have undergone a last substantial transformation when used in the
production of these goods.
144. The rule should be:
- CTH (CH) (COL) (KOR) (EGY) (BRA) (US) (JPN) (PHI) (CAN) (MEX) (IND) (NOR)
(AUS) (HK)
OPTION B:  Yes, provided
145. Production of linoleum, other floor coverings on a textile backing should only be considered
as a substantial transformation if the starting material is unbleached woven fabric, felt or nonwovens
and all processing takes place in one country.  This criterion ensures that minimal operations do not
confer origin.
146. The rule should be:
- “Change to this heading from unbleached fabrics, felt or non-woven, of any other heading”
(EC, TUR)
Relevant HS Code:
59.04
ISSUE No.39:   PRODUCTION OF TEXTILE WALL COVERINGS FROM TEXTILE FABRICSOPTION A:  Yes
147. Production of textile wall coverings is a substantial transformation.  The textile fabrics have
undergone a last substantial transformation when used in the production of these goods.
148. The rule should be:
- CTH  (CH, COL, KOR, CAN, IND, JPN, EGY, BRA, PHI, NOR) (AUS) (HK)
OPTION B:  Yes, provided- Production of textile wa ll coverings should only be consider ed as a substantial transformation
if the starting material is unbleached fabrics and all processing of the fabric takes place in onecountry.  This criterion ensures that minimal operations do not confer origin.
149. The rule should be:
- “Change to this heading from unbleached fabrics, felt or non-woven, of any other heading”
(EC, TUR) (HK)
OPTION C:  No
150. The textile fabrics are not considered to have undergone a substantial transformation when
used in production of textile wall coverings.  Such goods should be considered to originate in the
country where the fabric-making process occurs.G/RO/41
Page 587
151. The rule should be:
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.03, 58 .06, 58.08 or 60.02 (MEX) (US)
Relevant HS Code:
59.05
ISSUE No. 40:  PAINTING CANVAS AS THEATRICAL SCENERY, STUDIO BACKCLOTHS
OR THE LIKE
OPTION A: Yes
152. Painting canvas as theatrical scenery, studio  back-cloths and the like, including canvas
classified in the same heading, results in a new product with new characteristics.  It is not a
mass-produced product.  The rule should allow change from textile fabrics otherwise impregnated,
coated or covered classified in the same heading:
- CTHS (US, CH, JPN) (AUS)
OPTION B:  Yes, provided- Painting canvas as theatrical scenery, studio back-cloths and the like, provided that it is not
from textile fabrics otherwise impregnated, coated or covered classified in the same heading.The rule should be:
- CTH  (COL, KOR, EGY, BRA, IND, PAK) (HK)OPTION C:  Yes, provided- Painting canvas as theatrical scenery etc. should only be considered as a substantial
transformation when this change is attained by printing or dyeing of unbleached or
prebleached fabrics accompanied by preparatory or finishing operations.  Thermo-printingmust be accompanied by printing of the transfer paper. (EC, TUR)
OPTION D: No
153. The origin of these products is the country of origin of the fabric.  The rule should be:
- CTH, except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.03, 58.0 6, 58.08 or 60.02”. (MEX) (CAN)
Relevant HS Code:
ex-59.07(a)
ISSUE No. 41:  OBTAINING TEXTILE WICKS, GAS MANTLES ETC., TEXTILE HOSEPIPING
AND SIMILAR TEXTILE TUBING, TRANSMISSION OR CONVEYOR BELTS OR BELTING,AND OTHER TEXTILE PRODUCTS AND ARTICLES FROM YARNS AND FIBRES
OPTION A: YesG/RO/41
Page 588
154. Producing these textile materials and articles from yarn or fibres is a last substantial
transformation which results in a new product with new characteristics.  Countries have proposed
different terminology for the rules to achieve this objective.
155. The alternatives for the rule for the specified headings are:
for 59.08, ex-59.09(b), 59.10:
- CTH (JPN) (CH) (COL) (KOR) (EGY) (BRA) (IND) (CAN) (PAK) (AUS) (HK)
for ex-59.11(c):
- CTH (JPN) (CH) (COL) (KOR) (EGY) (BRA) (IND) (PHI) (PAK) (AUS) (HK)
for 59.08:
- Change to this heading from yarn of any other heading (EC) (TUR)
for 59.09, 59.10, ex-59.11(c):
- Change to this heading from yarn or fibres of any other heading (EC) (TUR)
OPTION B:  No
156. Obtaining these goods is not a substantial transformation.  Woven or knitted goods have their
origin in the country where the yarn was produced.  Other goods, of felt or nonwovens non-wovens,
have their origin where the fibres were produced.
157. The alternatives for the rules are:
for woven or kn itted goods of ex-59.08(a) to exclude change from fabrics
- CTH except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.01 to 58.02 , 58.06, 58.08 or 60.01 to 60.02 (US)
- CTH except from heading 58.01 to 58.02, 60.01 or 60.02 (MEX)for woven or knitte d goods of ex-59.09(b) ex-59.10(a) to exclude change from fabrics
- CTH except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 56.02, 56.03, 58.01 to 58.02, 58.06 58.08 or 60.01 to 60.02 (US)
(MEX)
for goods of ex-59.08(b) or ex-59.11(c) to exclude change from yarns:
- CTH except from heading 50.04 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06, or 55.08 to 55.11 (US) (MEX)
or, for ex-59.11(c):
- CTH, except from 56.02 or 56.03 (CAN)
for other goods (ex-59.10(b)):
- CTH except from heading 50.03 to 50.06, 51.06 to 51.10, 52.04 to 52.07, 53.06 to 53.08,
54.01 to 54.06, or 55.08 to 55.11 (US) (MEX)
Relevant HS Codes:
59.08, ex-59.09(b), 59.10, ex-59.11(c)G/RO/41
Page 589
ISSUE No. 42:  ATTACHING LINING OR ARMOURING TO TEXTILE HOSEPIPING AND
SIMILAR TEXTILE TUBING
OPTION A: Yes
158. Lining a textile tube with rubber or plastic tubing or applying metal armouring changes the
nature of the product and is a substantial transformation.  The rule should be
- Change by lining or armouring  (US).
OPTION B: No
159. Lining or armouring these goods is not a substantial transformation.
160. The alternatives for the rule provide for the origin to be the country where the textile
hosepiping or tubing is produced from fabric or the country where all operations to process the yarn or
fibres into tubing:
- CTH  (JPN) (CH) (COL) (KOR) (EGY) (BRA) (IND) (CAN) (MEX) (PAK) (AUS)
- Change to this heading from yarn or fibres of any other heading (EC) (TUR)
Relevant HS Code:
ex-59.09(a)
ISSUE No. 43:  MAKING POLISHING DISCS OR RINGS, OTHER THAN OF FELT, FROM
FABRIC
OPTION A: Yes
161. The polishing discs and rings, other than of felt, undergo a substantial transformation when
produced from fabric.  The rule should be :
- CTH  (COL) (BRA) (IND) (JPN) (EGY) (PHI) (CH) (PAK) (AUS)
OPTION B:  Yes, provided- Obtaining these goods is only a substantial transformation if they contain no felt or non-woven
fabrics.  The rule should be:
- CTH, except from heading 56.02 or 56.03 (CAN)OPTION C:  No
162. Obtaining these goods from fabric is not a substantial transformation.  The alternative
terminology proposed for the rule is:
- Change to this split subheading from yarn of a ny other heading, or waste fabrics or rags of
heading 63.10 (EC) (TUR)
- CTH except from heading 50.07, 51.11 to 51.13, 52.08 to 52.12, 53.09 to 53.11, 54.07 to
54.08, 55.12 to 55.16, 58.01 to 58.02, 58. 06 58.08 or 60.01 to 60.02 (US) (MEX)]G/RO/41
Page 590
Relevant HS Code:
ex-59.11(a)
ISSUE No. 44:  COATING, COVERING, IMPREGNATION OR LAMINATION OF KNITTED
OR CROCHETED Yarns, FABRICS TO PRODUCE GOODS CLASSIFIED IN CHAPTER 60
OPTION A:  Yes
163. Impregnation, coating, covering or lamination of pile fabrics or of other knitted or crocheted
fabrics classified in the same heading, including “long pile” fabrics and terry fabrics yarns, results in asubstantial transformation.
(When the coating, covering or impregnation is visible to the naked eye fabrics are classified in
Chapter 59.)
164. The alternatives for the rule for ex-60.01(c) are:
- CTH, or Change by coating or impregnation (IND) (NOR)
- Change by coating, covering, impregnation or lamination (KOR)
165. The rules for ex-60.02(c) should be:
- Change by coating, covering, impre gnation or lamination (KOR) (IND) (NOR)
OPTION B:  Yes, for ex-60.01(c),  provided- Some impregnation, coating, covering or lamination of fabrics gives textiles new
characteristics and uses and is regarded as substantial transformation, but minor coating orimpregnation also exists.  Clear criteria are needed to exclude minor coating or impregnationfrom resulting in a substantial transformation.  Visibility with the naked eye ensures that suchminor processes do not confer origin.
166. Treating only part of the surface of textiles is not sufficient to confer origin and it is necessary
to meet the additional requirement that “one side of the article should be wholly impregnated, coated
covered or laminated with plastics”.
167. The rule proposed for ex-60.01(c), to allow change within the heading, is:
- Change to pile fabrics impregnated, coated, covered or laminated of the same
heading, provided that one side of the article is wholly impregnated, coated, coveredor laminated and such impregnation, coating, covering or lamination can be seen withthe naked eye. (JPN) (PHI) (MAL)
OPTION C:  Yes, for ex-60.01(c), provided- The goods can be considered as having undergone a last substantial transformation, provided
that, for knitted or crocheted fabrics, the impregnation, coating, covering or laminationconstitutes 20% or more by wei ght of the good.  Otherwise the goods are not considered to
have undergone a substantial transformation and would retain the country of origin of wherethe original fabric was produced.G/RO/41
Page 591
168. The rule for ex-60.01(c) should be:
- A change to a fabric of this heading impregnated, coated, covered or laminated with rubber,
plastics or other materials, from any other fabric of this heading, provided that the impregnation,coating, covering or laminati on constitutes 20 per cent or more by weight of the good. (CAN)
OPTION D:  No
169. Impregnation, coating, covering or lamination of the fabrics of Chapter 60 does not result in a
substantial transformation.  Such goods are considered to originate in the country where thefabric-making process occurs.
170. The rule should be:
-C T H
for: ex-60.01(c) (COL, MEX, US, BRA, CH, EC, EGY, TUR, PAK) (AUS) (HK)for: ex-60.02(c) (COL, MEX, US, BRA, CH, EC, EGY, TUR, PAK) (AUS) (HK) (PHI) (CAN)
(JPN)
Relevant HS Codes:
ex-60.01(c) ex-60.02(c)
CHAPTERS 61 AND 62 
5
ISSUE No. 45:  ASSEMBLY OF THE GOODS OF HEADINGS 61.01 TO 61.15 FROM PARTS
KNITTED OR CROCHETED TO SHAPE
OPTION A : Yes
171. The assembly of an article in one country from parts knitted or crocheted to shape is a
substantial transformation.  However, if items such as accessories, buttons or other fasteners, pockets,
trimmings, cuffs, labels etc. are added and if button holes and hems are made, and if any of these
operations are carried out in another country, before or after the main assembly operation, theseoperations are not taken into account in determining the origin of the goods.
172. The rule should be : (EC, JPN, PHI, MAL, TUR, CH, NOR, FIJ, CR)
- Change to goods of this split chapter provide d that the goods are assembled in a single
country in accordance with Chapter Note 1
173. The Chapter Note 1/OPTION 1
, in which square brackets indicate additions proposed by
some of the countries that support this option, should be :
(EC, JPN, PHI, MAL, TUR, CH, NOR, FIJ, CR)
                                                     
     5Under GIR2(a) of the HS a collection of parts, described in that rule as “articles presented unassembled or
disassembled” is to be classified in the same heading as the assembled article.  For purposes of the rules of origin for
Chapters 61 and 62 specified in this document and in the attached table such a collection of parts is considered still to be pa rts
and is explicitly included in the descriptions, in column B of the attached table, of products covered by “ex-Chapter 61(i) and
(j)” or “ex-Chapter 62(g) and (h)” .G/RO/41
Page 592
1(a) For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single
country” means that all of the assembly operations following the cutting of the fabric, or theknitting or crocheting, to shape of the parts have been performed in that country.
(b) For the purposes of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in asingle country:
- attaching items such as: accessories, buttons and/or other fasteners, pockets, trimmings, cuffs,
plackets, labels  [collars (JPN, PHI, MAL, CH, NOR) ];
- making button holes, hemming.
OPTION B : No
174. Assembling parts already knitted or crocheted to shape requires only a minor operation to
attach them together by looping or simple sewing.  There is no substantial  transformation.
175. The two alternative proposals for the rule would determine the country of origin as the
country where the parts were knitted or crocheted to shape, whether or not assembled in the same
country, or as the single country in which the parts were both knitted or crocheted to shape and
assembled:
- The country of origin of the goods of this sp lit chapter is the country  in which the parts of
these goods have been knitted or crocheted to  shape (US, IND, MEX, CAN, SEN, EGY,
GUA, AUS)
- CC provided that the parts of these goods are both knitted or  crocheted to shape and sewn or
otherwise assembled in the country claiming origin (NZ, BRA, ARG, PAK)
176. To clarify the second option for the rule Chapter Note 1 / OPTION 3 should be: (NZ, BRA,
ARG, PAK)
1(a) For the purpose of this chapter, and subject to paragraph (b), “both cut or knit to shape and
sewn or otherwise assembled in the country claiming origin” means that all of the assemblyoperations along with the cutting of the fabric, or the knitting or crocheting, of the parts toshape have been performed in that country.
(b) For the purpose of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in asingle country :- attaching : buttons and other fasteners, patch pockets, foot straps, trimmings,
ornaments, cuffs, plackets, belt loops, epaulettes, labels, collars, padding and waistbands.
Relevant HS Codes:
ex Chapter 61 (b) (ex 61.01 to ex 61.15)
ISSUE No. 46:  ASSEMBLY OF THE GOODS OF HEADINGS 61.01 TO 61.15 AND 62.01 TO
62.12 FROM PARTS CUT TO SHAPE
OPTION A : Yes, providedG/RO/41
Page 593
- The assembly of an article in one country from parts cut to shape is a substantial
transformation.  However, if items such as accessories, buttons or other fasteners, pockets, trimmings,
cuffs, labels etc. are added and if button holes and hems are made, and if any of these operations are
carried out in another country, before or after the main assembly operation, these operations are not
taken into account in determining the origin of the goods.
177. The rule should be  (EC, JPN, PHI, MAL, TUR, CH, NOR, FIJ, CR) and (US, IND, MEX,
HK, SEN, GUA, EGY, AUS):
- Change to goods of this split chapter provided that the goods are assembled in a single
country in accordance with Chapter Note 1
178. Two options are proposed for Chapter Note 1 as specified below by the two groups of
countries concerned.  Square brackets indicate additions proposed by some of the countries that
support each option. :
- Chapter Note 1 / OPTION 1  (EC, JPN, PHI, MAL, TUR, CH, NOR, FIJ, CR)
1(a)       For the purposes of this chapter, and subject to paragraph (b), the term “assembled i n a single
country” means that all of the assembly operations  following the cutting of the fabric, or the
knitting or crocheting, to shape of the parts have been performed in that country.
(b)         For the purposes of paragraph (a) performing or not performing  operations such as the
following shall not affect the determination of whether the good has been assembled in a
single country :
- attaching items such as : accessories, buttons and/or other fasteners, pockets,
trimmings, cuffs, plackets, labels,  [collars (JPN, PH I, MAL, CH, NOR)];
- making button holes, hemming.
- Chapter Note 1 / OPTION 2  (US, IND, MEX, HK, SEN, GUA, EGY, AUS)
1(a)       For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single
country” means that all of the assembly operations  following the cutting of the fabric to shape
of the parts have  been performed in that country.
(b)         For the purposes of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in a
single country:
- attaching [and/or making up of the following, for example: (HK)]  [to garments or
accessories: (US)] buttons and other fasteners, patch pockets, foot straps, trimmings,
ornaments, cuffs, plackets, belt loops, epaulettes, labels, [collars (US) (HK)], [lining,
padding, pockets other than patch pockets, waistbands, garment accessories, facings,
self belts, pleats (HK)];
- making button holes, hemming, [pressing, stone or acid washing (US)]
OPTION A : Yes, provided
- The assembly of an article in one country from parts cut to shape is a substantial
transformation.  However, if items such as accessories, buttons or other fasteners, pockets, trimmings,
cuffs, labels etc. are added and if button holes and hems are made, and if any of these operations areG/RO/41
Page 594
carried out in another country, before or after the main assembly operation, these operations are not
taken into account in determining the origin of the goods.
179. The rule should be  (ARG, AUS, CH, CR, EC, EGY, FIJ, GUA, HK, IND, JPN, MAL, MEX,
MOR, NOR, PHI, SEN, US):
- Change to goods of this split chapter provided that the goods are assembled in a single
country in accordance with Chapter Note 1.
180. The following chapter note is proposed.  Square brackets indicate additions proposed by some
of the countries:
- Chapter Note 1
(a) For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single
country” means that all of the assembly operations  following the cutting of the fabric, [or the
knitting or crocheting,]* to shape of the parts have been performed in that country.
(b) For the purposes of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in asingle country:
- attaching [to garments or accessories (US)] items such as accessories, buttons and
other fasteners, pockets, trimmings, cuffs, plackets, labels, [foot straps, ornaments,
belt loops, epaulettes (US)], [colla rs (AUS, CH, JPN, MAL, NOR, PHI, US)];
- making button holes, hemming, [pressing, stone or acid washing (US)]"
- Issues Nos. 45, 46, 48-51, 54 and 73 remained unresolved, with a number of
delegations supporting the various options in these issues."
OPTION B : Yes, provided- The assembly of an article in one country from parts cut to shape is a substantial
transformation provided that no items classified in subheading 6307.90 that do not have their origin in
the same country are used.  This subheading includes pieces of textile fabric which have undergone
some working (such as hemming or the formation of necklines), intended for the manufacture of
garments but not yet sufficiently completed to be identifiable as garments or parts of garments
6.  If
this rule is not met, a substantial transformation can nonetheless result, provided that the good is the
result of substantial assembly in accordance with the proposed text for Chapter Note 1.
181. The rule should be (CAN):
- CC except from subheading 6307.90;
- Change from subheading [6117.90/6217.90]7, whether or not there is also a change from any
other chapter, provided the change is the result of substantial assembly; or
                                                     
*Not relevant to Issue No. 46.
     6(HS Explanatory Notes pp.948-9)
     7For Chapter 61 the proposed Chapter Note refers only to 6117.90 in the attached tables; for Chapter 62 the note
refers only to 6217.90G/RO/41
Page 595
No change in tariff classification required, whether or not there is also a change from
subheading [6117.90/6217.90] or any other chapter, provided the good is the result of substantial
assembly in accordance with Chapter Note 1.
182. Chapter Note 1 / OPTION 4 should be  (CAN) :
1(a)  For the purposes of this chapter, except for goods knitted or crocheted to shape, the term
“substantial assembly” means sewing together or assembly of all the major garment parts of a
good of this chapter.
(b) For the purposes of this chapter “major garment parts” means integral components of a
garment, but does not include parts such as collars, cuffs, waistbands, plackets, pockets,
linings, paddings or accessories.
OPTION C : No
183. Assembly of parts already cut to shape is not  a substantial transformation.  At least two
operations should be performed to ensure that origin is not conferred by simple assembly.
184. Two alternative approaches for the rule are:
- The country of origin of the good of this split chapter is the country where at least two or
more of the following operations have been performed; fabric-making, cutting of fabric to shape, or
assembling of all major parts cut to shape.
When no country satisfies the above requirements the country of origin of the goods of this
split chapter is the country in which the assembling operations of all major parts have been performed.
(KOR)
- CC (Change from any other chapter) provided that the parts of these goods are both cut to
shape and sewn or otherwise assembled in the country claiming origin (NZ, BRA, ARG, PAK)
185. To clarify the latter proposal the following Chapter Note 1 / OPTION 3  is proposed: (NZ,
BRA, ARG, PAK)
1(a) For the purpose of this chapter, and subject to paragraph (b), “both cut or knit to shape and
sewn or otherwise assembled in the country claiming origin” means that all of the assemblyoperations along with the cutting of the fabric, or the knitting or crocheting, of the parts to
shape have been performed in that country.
(b) For the purpose of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in a
single country:
- attaching:  buttons and other fasteners, patch pockets, foot straps, trimmings,
ornaments, cuffs, plackets, belt loops, epaulettes, labels, collars, padding and waist
bands.
Relevant HS Codes:
ex Chapter 61 (c) (ex 61.01 to ex 61.15)
ex Chapter 62 (a) (ex 62.01 to ex 62.12)G/RO/41
Page 596
ISSUE No. 47 : EMBROIDERY OF “FLAT PRODUCTS” SUCH AS HANDKERCHIEFS,
SHAWLS, MUFFLERS, MANTILLAS AND VEILS FROM FABRIC
 
 OPTION A:  Yes
 
186. These products undergo a substantial transformation by embroidery.  The rule should be, for
the goods of Chapter 61 and 62 respectively :
Change from ex-Chapter 61(e). (COL) (KOR) (MOR) (IND) (TH)
Change from ex-Chapter 62(d). (COL) (KOR) (MOR) (IND) (TH)
OPTION B:  Yes, provided187. The embroidered fabric undergoes a substantial transformation provided the value added by
embroidery represents at least 50% of the ex-works price of the goods.   The ad valorem  rule resolves
the problem raised of partial or “minimal” embroidery. (EC) (TUR) (EGY)
OPTION C: Yes, provided
188. The “flat products” undergo a substantial transformation in the country of embroidery
provided the quantity of the patterns made by embroidery is sufficient to confer the origin.
189. The rule proposed is:
The country of origin of the goods of this split chapter shall be the country of embroidery provided
that there is no unembroidered surface greater than 25cm x 25 cm. (PHI)(CH) (PAK)
OPTION D:  No
190. The proposed rules exclude operations subsequent to weaving which are not sufficient to
confer origin.:
191. The rules proposed are:
The country of origin of the goods of this split chapter shall be the country of origin of the
fabric, provided that the fabric was produced in th at country from the yarn or fibre. (BRA) (ARG)
(US) (AUS) (MEX)(CAN) (JPN)
Relevant HS Codes:ex-Chapter 61(d)  (ex 6117.10, ex 6117.80)
ex-Chapter 62(c)  (62.13, 62.14, ex 6217.10)
ISSUE No. 48: MAKING “FLAT PRODUCTS” SUCH AS HANDKERCHIEFS, SHAWLS,
MUFFLERS, MANTILLAS AND VEILS FROM FABRIC
OPTION A : Yes192. Making textile articles such as handkerchiefs, shawls, mufflers, mantillas or veils from fabric
is a substantial transformation.  The operations involv e much more than merely cutting to shape.  The
goods have the origin of the single country in which the fabric is cut to shape together with any other
processes that are performed after cutting, such as hemming or any dyeing or printing of the goods.
193. The rule should be:G/RO/41
Page 597
- The country of origin of the goods of this split chapter is the country in which they are
produced from fabric   (CAN) (COL) (CH)  (IND) (PHI) (HK) (P AK) (MAL) (FIJ) (CR)
OPTION B : No194. The change from fabric to flat articles such as handkerchiefs etc. involves little more than
cutting and is not sufficient to be considered as a substantial transformation.
195. The rules below are proposed by different groups of countries.
196. One proposal considers that the country of origin of flat products is the country where the
origin criteria for the relevant fabric are met.  Cutting to shape and any other subsequent processing,
such as hemming etc., that is carried out in another country is not taken into consideration in
determining the country of origin.  Applying the or igin criteria for fabrics means that if the rules
eventually established for fabric will recognise processes such as dyeing, printing, embroidery,impregnation or coating etc. as origin conferring processes, the origin of flat products will be the
country where fabric undergoes its last substantial transformation as determined by those rules for
fabric.
197. The rule proposed is:
- The country of origin of the goods of this split chapter is the country of origin of the fabric
(JPN) (US) (KOR) (AUS) (SEN) (NZ) (EGY) (DOM) (MEX)
198. The second proposed rule excludes operations subsequent to weaving which are not sufficient
to confer origin.
199. The rule proposed is:
- The country of origin of the goods of this split chapter shall be the country of origin of the
fabric, provided that the fabric was produced in th at country from the yarn or fibre. (BRA) (ARG)
200. Under the third proposal there are two ways to co nfer origin.  Either all processes to change
yarn into the finished flat product, including fabr ic-making and cutting to shape must be carried out in
one country; or all processes to change unbleached or prebleached fabric into the finished flat product
must be carried out in one country, provided that the good is dyed or printed, and that the dyeing or
printing is accompanied by preparatory or finishing operations.
201. The rule proposed is:
- Change from yarn of any other heading, or
- change to dyed or printed goods of this split chapter when this change has been attained by
printing or dyeing of unbleached or prebleached fabric accompanied by preparatory or finishing
operations.  Thermoprinting has to be accompanied by printing of the transfer paper.  (EC) (TUR)
Relevant HS Codes:
ex Chapter 61 (e) (ex-6117.10, ex-6117.80)
ex Chapter 62 (d) (62.13, 62.14, ex-6217.10)
ISSUE No. 49: ASSEMBLY OF CLOTHING ACCESSORIES, SUCH AS TIES, BOW TIES,
CRAVATS, GLOVES, MITTENS, MITTS, MUFFS AND HEADBANDS, FROM PARTS
KNITTED OR CROCHETED TO SHAPE
OPTION A: YesG/RO/41
Page 598
202. The assembly of clothing accessories, such as ties, bow ties, cravats, gloves, mittens, mitts,
muffs or headbands in one country from parts knitted or crocheted to shape is a substantial
transformation.  However, if items such as accessories, buttons or other fasteners, pockets, trimmings,
cuffs, labels etc. are added and if button holes and hems are made, and if any of these operations are
carried out in another country, before or after the main assembly operation, these operations are not
taken into account in determining the origin of the goods.
203. The rule should be (EC, PHI, MAL, TUR, CH, NOR, CR):
- Change to goods of this split chapter provided that the goods are assembled in a single
country in accordance with Chapter Note 1
204. The Chapter Note 1 / OPTION 1, in which square brackets indicate additions proposed by
some of the countries that support this option,  should be: (EC, PHI, MAL, TUR, CH, NOR, CR)
1(a) For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single
country” means that all of the assembly operations  following the cutting of the fabric, or the
knitting or crocheting, to shape of the parts have been performed in that country.
(b) For the purposes of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in asingle country:
- attaching items such as :  accessories, buttons and/or other fasteners, pockets,
trimmings, cuffs, plackets, labels ,  [collars (PHI, MAL, CH, NOR) ];
- making button holes, hemming.
OPTION B: No205. Assembling parts already knitted or crocheted to shape requires only minor work to attach
them together by looping or simple sewing.  There is no substantial  transformation.
206. Alternative proposals for the rule would determin e the country of origin as the country where
the parts where knitted or crocheted to shape, whether or not assembled in the same country, or the
single country in which the parts were both knitted or crocheted to shape and assembled:
- The country of origin of the goods of this split chapter is the country in which the parts of
these goods have been knitted or crocheted to shape (US, IND, MEX, CAN, SEN, EGY, GUA, JPN,
AUS)
- CC provided that the parts of these goods are both knitted or crocheted to shape and sewn or
otherwise assembled in the country cl aiming origin (NZ, BRA, ARG, PAK)
207. To clarify the latter rule the following Chapter Note 1 / OPTION 3 is proposed: (NZ, BRA,
ARG, PAK)
1(a) For the purpose of this chapter, and subject to paragraph (b), “both cut or knit to shape and
sewn or otherwise assembled in the country claiming origin” means that all of the assembly
operations along with the cutting of the fabric, or the knitting or crocheting, of the parts to
shape have been performed in that country.
(b) For the purpose of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in a
single country:G/RO/41
Page 599
- attaching: buttons and other fasteners, patch pockets, foot straps, trimmings,
ornaments, cuffs, plackets, belt loops, epaulettes, labels, collars, padding and waist
bands.
Relevant HS Codes:
ex Chapter 61(f)(ex 61.16, 6117.20, ex 6117.80 )
ISSUE No. 50: ASSEMBLY OF CLOTHING ACCESSORIES, SUCH AS TIES, BOW TIES,
CRAVATS, GLOVES, MITTENS, MITTS, MUFFS AND HEADBANDS, FROM PARTS CUT TO
SHAPE
OPTION A : Yes208. The assembly of an article in one country from parts cut to shape is a substantial
transformation.  However, if items such as accessories, buttons or other fasteners, pockets, trimmings,
cuffs, labels etc. are added and if button holes and hems are made, and if any of these operations are
carried out in another country, before or after the main assembly operation, these operations are nottaken into account in determining the origin of the goods.
209. The rule should be :
- Change to goods of this split chapter provided that the goods are assembled in a single
country in accordance with Chapter Note 1” (E C, PHI, MAL, TUR, CH, NOR, FIJ, CR) and (US,
IND, MEX, HK, SEN, GUA, AUS)
210. Two options are proposed for Chapter Note 1 as specified below for the countries concerned:
- Chapter Note 1 / OPTION 1 (EC, PHI, MAL, TUR, CH, NOR, FIJ, CR)
1(a) For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single
country” means that all of the assembly operations  following the cutting of the fabric, or the
knitting or crocheting, to shape of the parts have been performed in that country.
(b) or the purposes of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in asingle country:
- attaching items such as : accessories, buttons and/or other fasteners, pockets,
trimmings, cuffs, plackets, labels ,  [collars (PHI, MAL, CH, NOR)];
- making button holes, hemming.
- Chapter Note 1 / OPTION 2 (US, IND, MEX, HK, SEN, GUA, AUS)1(a) For the purposes of this chapter, and subject to paragraph (b), the term “assembled in a single
country” means that all of the assembly operations  following the cutting of the fabric to shape
of the parts have  been performed in that country.
(b) For the purposes of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in a
single country:
- attaching [and/or making up of the following, for example: (HK) ]  [to garments or
accessories: (US) ] buttons and other fasteners, patch pockets, foot straps, trimmings,G/RO/41
Page 600
ornaments, cuffs, plackets, belt loops, epaulettes, labels, [ collars (US) (HK) ], [
lining, padding, pockets other than patch pockets, waistbands, garment accessories,
facings, self belts, pleats (HK) ];
- making button holes, hemming, [ pressing, stone or acid washing (US) ]
OPTION B: Yes, provided- The assembly of an article in one country from parts cut to shape is a substantial
transformation provided that no items classified in subheading 6307.90 that do not have their origin in
the same country are used.  This subheading includes pieces of textile fabric which have undergone
some working (such as hemming or the formation of necklines), intended for the manufacture of
garments but not yet sufficiently completed to be identifiable as garments or parts of garments.  If this
rule is not met, a substantial transformation can nonetheless result, provided that the good is the resultof substantial assembly in accordance with the proposed text for Chapter Note 1 / OPTION 4.
211. The rule should be  (CAN):
- CC except from subheading 6307.90;
- Change from subheading [6117.90/6217.90], whether or not there is also a change from anyother chapter, provided the change is the result of substantial assembly; or
- No change in tariff classification required, whether or not there is also a change from
subheading [6117.90/6217.90] or any other chapter, provided the good is the result of substantial
assembly in accordance with Chapter Note 1.
212. Chapter Note 1/ OPTION 4 should be (CAN):
1(a) For the purposes of this chapter, except for goods knitted or crocheted to shape, the term
“substantial assembly” means sewing together or assembly of all the major garment parts of a
good of this chapter.
(b) For the purposes of this chapter “major garment parts” means integral components of a
garment, but does not include parts such as collars, cuffs, waistbands, plackets, pockets,
linings, paddings or accessories.
OPTION C: No213. Assembly of parts already cut to shape is not considered to be a substantial transformation.  A
combination of operations should be performed to ensure that origin is not conferred as a result of a
simple assembly.  The alternative approaches for the rule are:
- The country of origin of the goods of this split chapter is the country of origin of the fabric
(JPN)
- The country of origin of the good of this split chapter is the country where at least two ormore of the following operations have been performed; fabric-making, cutting of fabric to shape, or
assembling of all major parts cut to shape;
- when no country satisfies the above requirements the country of origin of the goods of this
split chapter is the country in which the assembling operations of all major parts have been performed.
(KOR)- CC provided that the parts of these goods are both cut to shape and sewn or otherwise
assembled in the country claiming  origin (NZ, BRA, ARG, PAK)
214. To clarify the latter proposal the following Chapter Note 1/ OPTION 3 is proposed: (NZ,
BRA, ARG, PAK)G/RO/41
Page 601
1(a) For the purpose of this chapter, and subject to paragraph (b), “both cut or knit to shape and
sewn or otherwise assembled in the country claiming origin” means that all of the assembly
operations along with the cutting of the fabric, or the knitting or crocheting, of the parts to
shape have been performed in that country.
(b) For the purpose of paragraph (a) performing or not performing operations such as the
following shall not affect the determination of whether the good has been assembled in a
single country:
- attaching:  buttons and other fasteners, patch pockets, foot straps, trimmings,
ornaments, cuffs, plackets, belt loops, epaulettes, labels, collars, padding and waist
bands.
Relevant HS Codes:
ex Chapter 61 (g) (61.16, 6117.20, ex 6117.80 )
ex Chapter 62 (e) (62.15, 62.16, ex 6217.10)
ISSUE No. 51:  ASSEMBLY OF TEXTILE PARTS FROM THEIR COMPONENTSOPTION A: Yes215. The assembly of textile parts from their components is a substantial transformation involving
sewing or similar operations to produce the finished part.  The rule, depending on the type of fabricused,  should be:
if made from knitted or crocheted fabric
- Change from ex Chapter 61 (i) or (j)  (US) (HK) (DOM) (FIJ) (IND) (CR)
if made from fabric other than knitted or crocheted (i.e. woven, felt or non-woven):
- Change from ex Chapter 62 (g) or (h)  (US) (HK) (DOM) (FIJ) (IND) (CR)
OPTION B: No
216. The assembly of parts from components is not sufficient to be considered as a substantial
transformation.
217. The alternatives proposed for the rule are:
- The country of origin of the goods of this split chapter is the country in which the goods are
produced from fabric  (BRA) (COL) (CH) (MEX) (PHI) (MAL) (ARG) (GUA) (CAN) (EGY)
- The country of origin of the goods of this split chapter is the country of origin of the fabric
(JPN) (AUS) (NZ)