basic-guide-to-exporting_Latest_eg_main_086196

Example Rules of OriginCombining Multiple Rule Types, U.S.–Australia FTARule of OriginProducts“A change to heading 1902 through 1905 from any other chapter.”Breads, pastries, cakes, biscuits (HS 1905.90)Non-U.S. or Australian InputFlour (classified in HS Chapter 11), imported from EuropeExplanationFor all products classified in HS headings 1902 through 1905, all non-U.S. or Australian inputsmust be classified in an HS Chapter other than HS Chapter 19 in order for the product to obtainpreferential duty treatment. These baked goods would qualify for tariff preference becausethe nonoriginating goods are classified outside of HS Chapter 19. (The flour is in Chapter 11.)However, if these products were produced with nonoriginating mixes, then these products wouldnot qualify because mixes are classified in HS Chapter 19, the same chapter as baked goods.Rule of Origin“A change to subheading 9403.10 through 9403.80 from any other heading; orA change to subheading 9403.10 through 9403.80 from any other subheading, provided there is aregional value content of not less than(a) 35 percent based on the buildup method, or(b) 45 percent based on the builddown method.”ProductWooden furniture (HS 9403.50)Non-U.S. or Australian inputParts of furniture (classified in 9403.90), imported from AsiaExplanationWooden furniture can qualify for preferential tariff treatment in two different ways: through a TSor a combination of a TS and an RVC requirement.Because the non-U.S. or Australian input is classified in the same heading (9403) as the finalproduct in this case, the good does not meet the simple TS in the first rule. Moving down to thesecond rule though, the good can meet the TS because the nonoriginating component is froma different subheading than the final product. For the good to qualify as originating, however, itmust also pass the RVC test.Chapter 18: Rules of Origin for FTAs207