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An originating good means a good:
| (a) |
wholly obtained or produced entirely in the territory of one or both of the parties; |
| or |
|
| (b) |
that has satisfied the requirements specified in Annex 3A; |
| or |
|
| (c) |
otherwise provided as an originating good under this Chapter 3. |
For manufactured products, depending on the product code, one of the following ROO will apply:
| a. |
Change in tariff classification (CTC) for all imported inputs used in the manufacture of the product. Singapore must be the place where the last substantial manufacture takes place. |
| b. |
Regional value-added content (VA) of 35-60%. This applies mainly to electronic products. |
| c. |
Process rule which applies mainly to chemicals and petrochemicals. |
The ROO in the USSFTA are product specific i.e. specific rules apply for each different type of product. The details of the specific rules are set out in Annex 3A. Annex 3A also refers to a regional value content which each party shall provide that the regional value content of a good shall be calculated on the basis of one of the following methods:(i) Build-up method:
| RVC = |
VOM X 100
AV |
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where |
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RVC is the regional value content, expressed as a percentage; |
| |
AV is the adjusted value; and |
| |
VOM is the value of originating materials that are acquired or self-produced,
and used by the producer in the production of the good. |
(ii) Build-down method:
| RVC = |
AV-VNM X 100
AV |
| |
where |
| |
RVC is the regional value content, expressed as a percentage; |
| |
AV is the adjusted value, and |
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VNM is the value of non-originating materials that are acquired and used by the producer in the production of the good. |
Annex 3C contains a list of goods regarded as remanufactured goods which are also deemed to have originated in Singapore or the US.
As stipulated in Articles 3.13.2, each Party may require that importers to maintain for up to five years after the date of importation records relating to the importation of the good. They may require that an importer provide, upon request, records which are necessary to demonstrate that a good qualifies as an originating good.
Outward Processing
Under the USSFTA's concept of Outward Processing, the product can accumulate the value add of all work done in Singapore as 'Singapore originating' as long as the final stage manufacturing is done in Singapore. Only products with an alternate Value Add Rule of origin can utilize the Outward Processing guideline. This allows for Singapore companies to retain the higher value activities in Singapore and to outsource low end tasks to the neighbouring countries. |
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