1. TRANSPOSITION OF DRAFT NON-PREFERENTIAL RULES OF ORIGIN - HS 2002-2007 Illustration through some cases Committee on Rules of Origin November 2012

2. Products of the Chemical or allied industries (Chapters 28-29) 2

3. Chapters 28 and 29 1. Changes within a single heading: - Deletion of subheading(s) within the same heading; thus, in many cases, the residual subheading covers more goods than before. 28.11, 28.24, 28.26, 28.27, 28.30, 28.33, 28.35, 28.36, 28.39, 28.41, 29.05, 29.06, 29.07, 29.08, 29.09, 29.12, 29.15, 29.17, 29.21, 29.22, 29.30, 29.36. 3

4. Chapters 28 and 29 1.Changes within a single heading: - New subheading(s) within the same heading, i.e., goods initially covered by one subheading are now covered by several subheadings. 29.03, 29.08, 29.10, 29.15, 29.16, 29.19, 29.20, 29.24, 29.25, 29.30, 29.39 4

5. Chapters 28 and 29 How these changes affect the rules in the Consolidated Text? If rule is CTH, no rectification is needed. If rule is CTSH, a technical rectification is needed. 5 HS 2002 DescriptionRule 29.15Saturated acyclic monocarboxylic acids…CTSH HS 2002DescriptionRule 29.19Phosphoric esters and their salts…CTH

6. 6 HS2002DescriptionHS 2007Description 2915.22--Sodium acetate-(deleted) 2915.23--Cobalt acetates-(deleted) 2915.24--Acetic anhydride2915.24--Acetic anhydride 2915.29--Other2915.29--Other -Esters of acetic acid: 2915.34--Isobutyl acetate-(deleted) 2915.35 --2 ‑ Ethoxyethyl acetate -(deleted) 2915.36 --Dinoseb (ISO) acetate 2915.39--Other2915.39--Other

7. 7 HS 2007DescriptionRule 2915.29--OtherAs specified for split subheading ex2915.29(a)---Sodium acetateCTSHS ex2915.29(b)---Cobalt acetatesCTSHS ex2915.29(c)---OtherCTSHS HS 2007DescriptionRule 2915.36 -- Dinoseb (ISO) acetateCTSH, except from split subheading ex2915.39(c) 2915.39--OtherAs specified for split subheading ex2915.39(a)---Isobutyl acetateCTSHS ex2915.39(b) --2 ‑ Ethoxyethyl acetate CTSHS ex2915.39(c)---OtherCTSHS, except from subheading 2915.36 7

8. 28.52 Chapters 28 and 29 2. Changes extending beyond one heading: D. Entirely a new heading or subheading; consequently, the new heading or subheading covers various goods that were classified in other heading(s). 2825.90, 2827.39, 2827.49, 2827.60, 2830.90, 2833.29, 2834.29, 2835.39, 2837.19, 2837.20, 2838.00, 2841.50, 2842.10, 2842.90, 2843.90, 2848.00, 2849.90, 2850.00, 2851.00, 2918.11, 2931.00, 2932.99, 2934.99, 3201.90, 3206.50, 3502.90, 3504.00, 3707.90, 3822.00 (HS2002) 8 EX

9. Chapters 28 and 29 2. Changes extending beyond one heading: Heading 28.52 Rule was drafted at split heading level. Splits were created for each product coming from a different subheading (29 splits). The definition of each split intends to match the definition of the HS2002 subheading where the products came from. 9

10. Chapters 28 and 29 2. Changes extending beyond one heading: Heading 28.52 The rule for each split heading of 28.52 is CTHS with the exception of the subheading or heading where the products came from. An exception was added to the rules of the subheadings which mercury compounds were transferred to heading 28.52. 10

11. HS 2007DescriptionRule 28.52Compounds, inorganic or organic, of mercury, excluding amalgams. As specified for split headings ex28.52(a)-Of mercury oxidesCTHS, except from subheading 2825.90. HS 2007DescriptionRule 28.25Hydrazine and hydroxylamine and…other metal oxides… As specified for subheadings 2825.90- OtherCTSH, except from split heading ex28.52(a) 11

12. HS 2007DescriptionRule 28.52Compounds, inorganic or organic, of mercury, excluding amalgams. As specified for split headings ex28.52(b)- Of mercury chloridesCTHS, except from split subheading ex2827.39(e) HS 2007DescriptionRule 28.27Chlorides, chloride oxides and chloride hydroxides… As specified for subheadings ex2827.39(e) - Other [chlorides]CTSH, except from split heading ex28.52(b) 12

13. HS 2007DescriptionRule 28.52Compounds, inorganic or organic, of mercury, excluding amalgams. As specified for split headings ex28.52(p)- Of mercury phosphidesCTHS, except from heading 28.48 HS 2007DescriptionRule 28.48Phosphides, whether or nor chemically defined, excluding… CTH, except from split heading ex28.52(p) 13

14. Pharmaceutical Products (Chapter 30) 14

15. HS2002HS 2007 ex39.203006.10 ex39.21 ex60.02 ex60.03 ex60.05 ex3926.903006.91 3006.803006.92 15

16. 16 3006.10 (HS2007) - Sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or dental adhesion barriers, whether or not absorbable 2. Changes extending beyond one heading: E. Amendments to the heading text only, but which result in a change in the scope of the heading.

17. 17 HS2002HS 2007 3006.10 ex3920.10, ex3920.20, ex3920.30, ex3920.43, ex3920.49, ex3920.51, ex3920.59, ex3920.61, ex3920.62, ex3920.63, ex3920.69,ex3920.71, ex3920.72, ex3920.73, ex3920.79, ex3920.91, ex3920.92, ex3920.93, ex3920.94, ex.3920.99, ex3921.11, ex3921.12, ex3921.13, ex3921.14, ex3921.19, ex6002.40, ex6002.90, ex6003.10, ex6003.20, ex6003.30, ex6003.40, ex6003.90, ex6005.90 3006.10

18. 18 HS 2007DescriptionRule ex3006.10(c)--- Of polymers of styrene CTSHS, except from split subheadings ex3920.30, ex3006.92(m) or subheadings 3006.20-60 ex3006.10(d)--Of polymers of vinyl chloride… CTSHS, except from split subheadings ex3920.43, ex3006.92(m) or subheadings 3006.20-60

19. 19 2. Changes extending beyond one heading: D. Entirely new heading or subheading covering goods that were classified in other heading(s) HS2002HS 2007 ex3926.903006.91 HS 2007DescriptionRule 3006.91-Appliances identifiable for ostomy use CTSH, except from subheading 3926.90

20. Miscellaneous chemical products (Chapter 38) 20

21. HS2002HS 2007 3824.20 3824.71 3824.74 3824.793824.72, 3824.73 3824.77, 3824.79 3824.903821 3824.71, 3824.72, 3824.73, 3824.74, 3824.75, 3824.76, 3824.77, 3824.78, 3824.79, 3824.81, 3824.82, 3824.83, 3824.90 B. Deletion of subheading (3824.20) C. Splitting subheadings 3824.71 3824.79 C. Splitting subheading 3824.90 21

22. HS 2007Rule 3824.72CTSH, except from subheading 3824.73, 3824.74, 3824.75, 3824.76, 3824.77, 3824.78 or split subheading 3824.90(b) 3824.73CTSH, except from subheading 3824.72, 3824.74, 3824.75, 3824.76, 3824.77, 3824.78 or split subheading 3824.90(b) 3824.74CTSH, except from subheading 3824.72, 3824.73, 3824.75, 3824.76, 3824.77, 3824.78 or split subheading 3824.90(b) 3824.75CTSH, except from subheading 3824.72, 3824.73, 3824.74, 3824.76, 3824.77, 3824.78 or split subheading 3824.90(b) 3824.76CTSH, except from subheading 3824.72, 3824.73, 3824.74, 3824.75, 3824.77, 3824.78 or split subheading 3824.90(b) 3824.77CTSH, except from subheading 3824.72, 3824.73, 3824.74, 3824.75, 3824.76, 3824.78 or split subheading 3824.90(b) 3824.78CTSH, except from subheading 3824.72, 3824.73, 3824.74, 3824.75, 3824.76, 3824.77 or split subheading 3824.90(b) 22

23. HS 2007Rule 3824.81CTSH, except from subheading 3824.82, 3824.83 or split subheading ex3824.90(b) 3824.82CTSH, except from subheading 3824.81, 3824.83 or split subheading ex3824.90(b) 3824.83CTSH, except from subheading 3824.81, 3824.82 or split subheading ex3824.90(b) 3824.90As specified for split subheading ex3824.90(a)CTSHS ex3824.90(b)CTSHS, except from subheading 3006.70, 3824.72, 3824.73, 3824.74, 3824.75, 3824.76, 3824.77, 3824.78, 3824.81, 3824.82, 3824.83, 3825.10, 3825.20, 3825.49, 3825.50, 3825.61, 3825.69 or 3825.90 or split subheading ex2842.10(a), ex3006.80(l), 3825.30(a) or ex3825.41(b) (other than perhalogenated waste organic solvents) 23

24. Textiles and Textiles Articles ( Chapters 50-63) 24

25. HS2002HS 2007 5402.10 5402.11 5402.19 5402.39 5402.34 5402.39 5402.41 5405.44 5402.45 5402.42 5402.44 5402.46 5402.43 5402.44 5402.47 5402.49 5402.44 5402.48 5402.49 Subheading 5402.10 has been subdivided to provide separately for yarn of aramids. New subheading 5402.34 has been created to provide separately for textured yarn of polypropylene. Subheadings 5402.41 to 5402.43 have been redrafted and renumbered New subheadings 5402.44 to 5402.48 have been created to provide separately for elastomeric yarn and that of polypropylene 25

26. HS 2002DescriptionRule 54.02 Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex. As specified for split headings ex54.02(a) -Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex:processed [CTH; change by core spinning.] ex54.02(b) -Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex: printed, dyed (includingdyed white) [CTH; or change by permanent dyeing or permanent printing from unbleached or prebleached yarn with at least two preparatory or finishing operations.] ex54.02(c)-Other CTH, except from headings 54.01 or 54.06 26

27. 27 HS2002HS2007 6002.40 3006.10 6002.40 6002.90 3006.10 6002.90 6003.10 3006.10 6003.10 6003.20 3006.10 6003.20 6003.40 3006.10 6003.40 6003.90 3006.10 6003.90

28. HS 2007Rule ex60.02(a) [CTH; except from ex30.06(y) and ex30.06(z) or Change from unbleached or prebleached fabric to the product of this split heading by permanent dyeing or printing, accompanied by at least two preparatory or finishing operations.] ex60.02(b)CTH ; except from ex30.06(y) and ex30.06(z) 60.03As specified for split headings ex60.03(a) [CTH; except from ex30.06(ai) through ex30.06(ei) or Change from unbleached or prebleached fabric to the product of this split heading by permanent dyeing or printing, accompanied by at least two preparatory or finishing operations.] ex60.03(b)CTH ; except from ex30.06(ai) through ex30.06(ei) 28

29. Machinery (Chapters 84-85) Machinery (Chapters 84-85) 29

30. HS2002Reason for change 84.19 New heading 8486 has been created for machines for the manufacture of semiconductors and flat screen systems. HS2002HS2007 ex8419.898419.89 ex8486.10 ex8486.20 ex8419.908419.90 8486.90 A part of subheading 8419.89 has been moved to a new heading 84.86. The correlation table says as follows: 30

31. HS 2007DescriptionRule 8419.89-- OtherAs specified for split subheading 8419.89(a)Electro-mechanical tools for working in the hand, with self- contained electric motor CTSHS, except from subheading 8467.29, split subheadings ex8414.80(a), ex8419.39(a),ex8422.30(a), ex8422.40(a),ex8424.30(a), ex8486.10(a) or ex8486.20(a) 8419.89(b)OtherCTSHS, except from split subheading ex8486.10(a) or ex8486.20(a) 31

32. HS 2007DescriptionRule 8419.90- PartsAs specified for split subheading 8419.90(a)Of electro- mechanical tools for working in the hand, with self-contained electric motor CTH, except from split subheadings ex8414.90(a), ex8422.90(a), ex8424.90(a), ex8467.91(a), ex8467.99(a) or ex8486.90(a) 8419.90(b)OtherCTH; except for split subheading ex8486.10(a) 32

33. 33 HS2002 ex8419.89ex8464.90 ex8419.90ex8479.89 ex8421.19ex8514.10 ex8456.10ex8514.20 ex8456.99ex8514.30 ex8464.10ex8543.89 ex8464.20 HS2007 8486.10

34. 34 HS 2007DescriptionPrimary rules ex8486.10(a) -- Products classified in HS2002 subheading 8419.89Machinery, plant or laboratory equipment, other than non-electric instantaneous or storage water heaters, medical surgical or laboratory sterilisers, dryers or rectifying plant, heat exchange products, other machinery, plant and equipment for making hot drinks or for cooking or heating food CTSHS, except from split subheading 8419.89(a)

35. HS 2007DescriptionPrimary rules ex8486.10(b)-- products classified in HS2002 subheading 8421.19 CTSHS, except from subheading 8421.19 ex8486.10(c)-- products classified in HS2002 subheading 8456.10CTSHS ex8486.10(d)-- products classified in HS2002 subheading 8456.99CTSHS, ex8486.10(e)-- products classified in HS2002 subheading 8464.10CTSHS ex8486.10(f)-- products classified in HS2002 subheading 8464.20CTSHS ex8486.10(g)-- products classified in HS2002 subheading 8464.90CTSHS ex8486.10(h)-- products classified in HS2002 subheading 8479.89CTSHS ex8486.10(i)-- products classified in HS2002 subheading 8514.10CTSHS ex8486.10(j)-- products classified in HS2002 subheading 8514.20CTSHS ex8486.10(k)-- products classified in HS2002 subheading 8514.30CTSHS ex8486.10(l)-- products classified in HS2002 subheading 8543.89CTSHS 35

36. Comments from the Secretariat (recommendation) HS 2007DescriptionPrimary rules (1)(2)(3) 84.86 Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9 (C) to this Chapter; parts and accessories. As specified for subheading 8486.10 - Machines and apparatus for the manufacture of boules or wafers CTSH Close split subheadings and simplify rule to 36

37. HS2002HS2007 8523.11ex8523.29 8523.12ex8523.29 8523.13ex8523.29 8523.20ex8523.29 8523.30ex8523.21 8523.90ex8523.40,ex8523.51, ex8523.59,ex8523.80 8524.10ex8523.80 8524.31ex8523.40 8524.32ex8523.40 8524.39ex8523.40 8524.40ex8523.29 8524.51ex8523.29 8524.52ex8523.29 8524.53ex8523.29 8524.60ex8523.21 8524.91ex8523.29,ex8523.40, ex8523.51,ex8523.59, ex8523.80 8524.99ex8523.29,ex8523.40, ex8523.51,ex8523.59, ex8523.80 37

38. HS 2007DescriptionPrimary rules 85.23Discs, tapes, solid-state non-volatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37. As specified for subheadings ex85.23(a)“Smart Cards”CTH, except from subheadings 8542.90, 8543.70 or 8543.90, or change from split heading (b) ex85.23(b)Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for the production of records, but excluding products of Chapter 37. CTH; or change from split heading (c) ex85.23(c)OtherCTH; or change from split heading (b) 38

39. Thank you for your attention! 39