Origin Criteria

Products are divided into two categories:

i.	Wholly Obtained Products Wholly obtained products mainly refer to commodity products, such as orchids grown in Singapore. Such products are automatically accepted as originating in Singapore.
ii.	Manufactured Products
	a. Products made from exclusively Singaporean or EFTA materials; or b. Products made from Singaporean, EFTA or imported materials or a combination of any materials from these sources.

Products will be considered originating in Singapore if they meet the products pecific rules in the Agreement as follows:

1.	Change in tariff classification (CTC) Essentially the ROO require that the products be substantially transformed in Singapore. Such transformation is deemed to have occurred if there is a change in tariff classification (CTC). The Harmonized System of Classification categorizes products into chapters (2-digit), headings (4-digit) and subheadings (6-digit). The CTC rule in the ESFTArequires the final product to have a different 4-digit heading from the materials used in its production.
2.	Value-add For some products, a value-add rule is provided for in the ROO. Under this rule, products will qualify for preferential tariff treatment if their Singaporean content meets a specified percentage of the ex-works price. Manufacturers that source inputs from overseas can include the EFTA or Singapore component of these inputs towards the specified percentage. Depending on the product, the specified local content ranges from 40% to 80% ex-works price.
	Ex-Factory Price = Ex-Factory Cost + Profits
	Where
	Ex-Factory Cost  =       Total raw material costs + Direct Labour Costs + Direct Overhead Costs
3.	Process definition For some products, a process definition is provided for in the ROO. Under this rule, products which undergo the specified manufacturing process or processes in Singapore will be considered Singapore origin.

Outward Processing    
     
For the ESFTA, a good has to satisfy the requirements of Appendix 3 to Annex I to engage in outward processing as follows:

(a)

For products listed in the table in Appendix 3 to Annex I, the total value of all non-originating materials and costs accumulated outside Singapore during outward processing, including transport costs, must not exceed 50% of the ex-works price of the final good. Ex-works price means the price paid for the product ex works to the manufacturer in a Party in whose undertaking the last working or processing is carried out, provided the price includes the value of all materials used, minus any internal taxes returned or repaid when the product obtained is exported.

(b)

For products not listed in the table listed in Appendix 3 to Annex I, the total value of all non originating materials and costs accumulated outside Singapore and EFTA countries during outward processing, including transport costs, must not exceed 10% of the ex-works price of the final good.