Section A: Rules of Origin Sample Clauses

Section A: Rules of Origin. Three avenues are provided through which goods can qualify as being ‘originating’ and, thereby, qualify for preferential tariff treatment (Article 3.2). A good will qualify as originating if it: • Is wholly obtained or produced entirely in the territory of one or more of the CPTPP Parties (such as, fruits, plants or animals); • Is produced entirely in the territory of one or more of the CPTPP Parties, exclusively from originating materials; or • Is produced entirely in the territory of one or more of the CPTPP Parties using non-originating materials, provided that the good meets the criteria set out in the Product Specific Rules (PSR) Annex. The two main methods set out in the PSR Annex for determining whether goods qualify as originating under the third option are: • Change in tariff classification (CTC): under this approach, a good will qualify as originating if all non-CPTPP materials used in its production have undergone a specified change of tariff classification. All products under the CPTPP except for certain motor vehicles have an applicable CTC rule. • Regional value content (RVC): this approach, which is provided as an alternative option primarily for industrial products, is based on the value added by producers within the CPTPP region. When a recovered material that is derived in the territory of one or more of the Parties is used in the production of, and incorporated into, a remanufactured good, then that recovered material is required to be treated as originating (Article 3.4). A ‘recovered material’ is one that results from the disassembly of a used good into individual parts; and the cleaning, inspecting, testing or other processing of those parts as necessary for improvement to sound working condition.