Non-preferential rules may differ from country to country and the same product may have different origins depending on which country's scheme is applied. Non-preferential rules of origin are used to determine the country of origin for certain purposes.
Non-Preferential Rules of Origin can be used as an important trade and commercial policy measure. Three general rules are applied as follows:
a. Change of tariff classification (on any level, though 4-digit level is the most common):
- Both the tariff and the CTC based ROO for each product ultimately depends upon the tariff classification of the product.
Found from: http://www.asean.fta.govt.nz/. Such as:
The first two digits (HS 2-digit level) relate to chapter headings.
The next two digits (HS 4-digit level) relate to headings.
The next two digits (HS 6-digit level) relate to subheadings.
The last two digits (HS 8-digit level) are unique to each country.
For example, the HS code for kiwifruit is 08105000, which can be broken down into:
08: Chapter: Edible Fruit and Nuts
0810: Heading: Other Fruit, Fresh
081050: Subheading: Kiwifruit
08105000 Further identifier
b. Value added-rule (ad valorem)
c. Special processing rule, the minimum transformation is described.
Example: In EU non-preferential rules of origin for T-shirts (HS6109), the origin is supposed to be in the country where the complete making-up was done.