Rules of Origin  
     
 

The SJFTA Rules of Origin (ROO) were negotiated to make implementation simple for the exporters from both countries. All products, with the exception of textile and apparel goods, need only fulfil a general rule of origin of a relatively low threshold of 35% local content. For textile and apparel goods, specific process rules apply.

For SJFTA, an originating good means a good which fulfils Article 3.12 and any of the following:

(a) wholly obtained in the territory of a Party;
(b) produced entirely in the territory of one or both of the Parties; or
(c) for goods:
(i) other than goods subject to Article 3.3, fulfils a minimum of a local value content of 35%, calculated using the following method:

LVC =   AV - VNM x 100                                          
------------------                                
         AV
Where:
"LVC" is the local value content, expressed as a percentage;
"AV" is the appraised value; and
"VNM" is the value of non-originating materials that are acquired and used by the producer in the production of the good.

(ii) subject to Article 3.3, satisfies the conditions set out in Article 3.3.

Hence, the minimum threshold for Local Value-add required is 35% based on the Free-On-Board (FOB) price calculation