Goods Not Wholly Produced or Obtained. 1. For the purposes of Article 2.1(b) (Originating Goods), except for those goods covered under Paragraph 2, a good shall be treated as an originating good if:
(a) the good has a regional value content of not less than 40 per cent of FOB calculated using the 3 “International law” refers to generally accepted international law such as the United Nations Convention on the Law of the Sea. formulae as described in Article 5 (Calculation of Regional Value Content), and the final process of production is performed within a Party; or
(b) all non-originating materials used in the production of the good have undergone a change in tariff classification at the four-digit level (i.e. a change in tariff heading) of the HS Code in a Party.
2. In accordance with Paragraph 1, a good subject to Product Specific Rules shall be treated as an originating good if it meets those Product Specific Rules.
3. For a good not specified in Annex 2 (Product Specific Rules), a Party shall permit the producer or exporter of the good to decide whether to use Paragraph 1(a) or (b) when determining if the good is originating.
4. If a good is specified in Annex 2 (Product Specific Rules) and the relevant provisions of that Annex provide a choice of rule between a regional value content based rule of origin, a change in tariff classification based rule of origin, a specific process of production, or a combination of any of these, a Party shall permit the producer or exporter of the good to decide which rule to use in determining if the good is originating.
Goods Not Wholly Produced or Obtained. 1. For goods that do not have originating status under subparagraph (a) of Article 4.2 (Originating Goods) and are not covered under Annex 4B (Product Specific Rules of Origin), a good shall be considered originating if all non-originating materials have undergone at least a change in tariff sub-heading (CTSH) level of the Harmonized System, and the QVC of the good is not less than 35 per cent of the FOB value as per build-up formula or 45 per cent of the FOB value calculated as per build-down formula under Article 4.6 (Calculation of Qualifying Value Content), provided that the final production process of the manufacture of the good is performed within the territory of the exporting Party.
2. Upon the entry into force of this Agreement, the Parties shall enter into negotiations, on a without prejudice basis, on the following:
(a) a Product Specific Rules Schedule that shall contain product specific rules for all tariff lines in the Harmonized System; and
(b) appropriate amendments to this Chapter relevant to that Schedule including:
(i) a provision that would confer origin on goods produced entirely in the territory of one or both of the Parties, exclusively from originating materials; and
(ii) a provision that would regard a good or material as originating if it is produced in the territory of one or both of the Parties by one or more producers, provided that it satisfies the requirements of Article 4.2 (Originating Goods) and all other applicable requirements in this Chapter. Upon the conclusion of the negotiations referred to paragraph 2, the Parties agree to incorporate the negotiated Product Specific Rules Schedule in Annex 4B (Product Specific Rules of Origin) and make any appropriate amendments to this Chapter, in accordance with Article 14.3 (Amendments - Final Provisions).
Goods Not Wholly Produced or Obtained. 1. For the purposes of subparagraph (c) of Article 3.2 (Origin Criteria),except for those goods covered under paragraph 2, a good shall be treated as an originating good:
(a) if the goods have a qualifying value content of not less than 40 per cent calculated using the formula set out in Article 3.5 (Qualifying Value Content (QVC)); or
(b) if all non-originating materials used in the production of the goods have undergone a change in tariff classification (hereinafter referred to as "CTC") at four-digit level (i.e. a change in tariff heading) of the HS.
2. Notwithstanding paragraph 1, goods listed in Annex 3B (Product Specific Rules) shall qualify as originating goods if the goods satisfy the product specific tules set out therein.
