Information Technology Goods. Example when using a material covered by the Attachment except for HS 8541.10 through 8542.90 (subparagraph (f)(i) of Part 1 of Annex 2) Company A produces washing machines in Japan and plans to export them to Indonesia under the Agreement. The PSRs for washing machines (HS8450.11) under the Agreement are: A change to subheading 8401.10 through 8485.90 from any other subheading; or No required change in tariff classification to subheading 8401.10 through 8485.90, provided that there is a qualifying value content of not less than 40 percent. Company A decided to choose the 40% value-added rule in this case. Company A’s manufacturing costs of the washing machine Material/Parts Sources Originating Status Value US$ Parts a Japan originating 100 Parts b (switch) Japan considered as originating 40 Parts c China non-originating 50 Parts d India non-originating 120 Parts e S. Korea non-originating 100 Other Costs N/A N/A 90 F.O.B. Price -- -- 500 Company A obtains Parts b (switch, HS8536.50) covered by the Attachment from Company B in Japan. No production data is available proving that Parts qualifies as an originating material of Japan. But if Company A obtains information which proves that Parts b (switch) was assembled in Japan, Parts b may be considered as an originating material of Japan pursuant to subparagraph (f)(i) of Part 1 of Annex 2, and the calculation of Q.V.C. of the washing machine is: $500－$270 (Parts c, d and e) Q.V.C.= × 100＝46%≧40% $500 The above calculation shows that the washing machine qualifies as an originating good of Japan. Appendix 3
Information Technology Goods. Information technology goods which are covered by attachment A or B of the Ministerial Declaration on Trade in Information Technology Products adopted in the 1 General Rules for the Interpretations of the Harmonized System 2 (a) 2(a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled. Ministerial Conference of the WTO on 13 December 19962 (hereinafter referred to as “the attachment”) and which are exported without a certificate of origin under the Agreement, are provided duty-free treatment by each Country. When such information technology goods are used in the production of another good as materials, producers of the information technology materials are requested by a producer of that good to provide cost data to prove the origin of those materials. Since the producers of those materials are not requested to prove the origin of those materials as long as they export them as final goods and have difficulties in providing the data of those materials, the producer of the good may not be able to obtain the data of origin. The examples set out in paragraph 5.1 and 5.2 show that cost data to prove the origin of information technology materials used in the production of another good is not required and the burden of producers of both the good and materials is reduced.
Information Technology Goods. Information technology goods which are covered by attachment A or B of the Ministerial Declaration on Trade in Information Technology Products adopted in the Ministerial Conference of the WTO on 13 December 19962 (hereinafter referred to as “the attachment”) and which are exported without a certificate of origin under the Agreement, are provided duty-free treatment by each Party. When such information technology goods are used in the production of another good as materials, producers of the information technology materials are requested by a producer of that good to provide cost data to prove the origin of those materials. Since the producers of those materials are not requested to prove the origin of those materials as long as they export them as final goods and have difficulties in providing the data of those materials, the producer of the good may not be able to obtain the data of origin. The example shows that cost data to prove the origin of information technology materials used in the production of another good is not required and the burden of producers of both the good and materials is reduced.
Information Technology Goods. Example when using a material covered by the Attachment except for HS 8541.10 through 8542.90 (subparagraph [(j)(i)] of Part 1 of Annex 2) Company A produces washing machines in Japan and plans to export them to Indonesia under the Agreement. The PSRs for washing machines (HS8450.11) under the Agreement are: CTSH or QVC 40 Company A decided to choose the 40% value-added rule in this case. Company A’s manufacturing costs of the washing machine 1 Rule 2(a) of the General Rules for the Interpretation of the Harmonized System
Information Technology Goods. Information technology goods which are covered by attachment A or B of the Ministerial Declaration on Trade in Information Technology Products adopted in the Ministerial Conference of the WTO on 13 December 19962 (hereinafter referred to 1 General Rules for the Interpretations of the Harmonized System 2 (a)
