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Under the PSFTA, goods shall be deemed originating and eligible for preferential treatment if they conform to the origin requirement under any of the following conditions:
| (a) |
goods wholly produced or obtained in the territory of the exporting Party; or |
| (b) |
goods not wholly produced or obtained in the territory of the exporting Party, provided that the said goods are eligible under Article 3.3 of the PSFTA; or |
| (c) |
as otherwise provided for under Chapter 3: Rules of Origin (ROO). |
A good is considered to have undergone sufficient production in the territory of a Party if:
| (a) |
it satisfies the product-specific rule as set out in Annex 3A (Product-Specific Rules); or |
| (b) |
where there is no product-specific rule set out in Annex 3A (Product-Specific Rules), fulfils a qualifying value content of not less than 35% determined in accordance with Article 3.4. |
The following formula for qualifying value content shall be applied:
F.O.B. - N.Q.M. / F.O.B. x 100% is greater than or equal to 35%
where:
(a) F.O.B. is the Free-On-Board value, which refers to the value of a good payable by the buyer to the seller, regardless of the mode of shipment, not including any internal excise taxes, reduced, exempted, or repaid when the good is exported; and
(b) N.Q.M. is the non-qualifying value of materials used by the producer in the production of the good.
Outward Processing
Recognition of the concept of outward processing as an integral part of the manufacturing process for certain goods (such as electric irons) has been given. These goods will qualify for preferential treatment even if they have undergone processes of production or other operations outside the territory of a Party, provided they are returned to the Party before export. |