According to the AANZFTA, a good shall be treated as an originating good if it is either:

(a)	wholly produced or obtained in a Party;
(b)	not wholly produced or obtained in a Party provided that the good has satisfied the requirements regional value content of not less than 40 per cent of Free On Board (FOB); or it has 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.
(c)	produced in a Party exclusively from originating materials from one or more of the Parties.

A good which complies with the origin requirements will retain its eligibility for preferential tariff treatment if exported to a Party and subsequently re-exported to another Party.

A good shall be treated as an originating good if the good has a regional value content of not less than 40 per cent of FOB calculated using the formulae below and the final process of production is performed within a Party. The formula are as follows:

(a)	Direct Formula = [(AANZFTA Material Cost + Labour Cost + Overhead Cost + Profit + Other  Costs) / FOB] x 100%
(b)	Indirect Formula or Build-down Formula = [(FOB - Value of Non-Originating Materials) / FOB] x 100%

where:

(a)	AANZFTA Material Cost is the value of originating materials, parts or produce that are acquired or self-produced by the producer in the production of the good;
(b)	Labour Cost includes wages, remuneration and other employee benefits;
(c)	Overhead Cost is the total overhead expense;
(d)	Other Costs are the costs incurred in placing the good in the ship or other means of transport for export including, but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees and service charges;
(e)	FOB is the free-on-board value of the goods; and
(f)	Value of Non-Originating Materials is the CIF value at the time of importation or the earliest ascertained price paid for all non-originating materials, parts or produce that are acquired by the producer in the production of the good. Nonoriginating materials include materials of undetermined origin but do not include a material that is self-produced.

A good which complies with the origin requirements and which is used in another Party as a material in the production of another good shall be considered to originate in the Party where working or processing of the finished good has taken place.

A good subject to product specific rules shall be treated as an originating good if it meets the requirements. In the AANZFTA, detailed product specific rules have been provided in the annex 2.

The rules specify that the materials used to produce a good have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy a regional value content criterion or a combination of any of these criteria. A requirement of a change in tariff classification applies only to non-originating materials. Where a tariff heading or sub-heading is subject to alternative product specific rules, it shall be sufficient to comply with one of the rules.

Where the product specific rule requires only a regional value content, the final process of production must be performed within a Party.