Summary of Criteria

Summary of the criterion for

ROO under AFTA and ASEAN FTAs

 

Rules of Origin under AFTA and ASEAN FTAs

No	Agreement	ROO Criterion	Status
1.	ASEAN Trade in Goods or CEPT for AFTA	RVC 40% or CTH	Co-equal
2.	ASEAN-China Trade in Goods Agreement	RVC 40%	-
3.	ASEAN-Korea Trade in Goods Agreement	RVC 40%  or CTH	Co-equal
4.	ASEAN-Japan Comprehensive Partnership Agreement	RVC40%  or CTH	Co-equal
5.	ASEAN-India Trade in Goods Agreement	RVC 35% Plus CTSH	Twin criteria
6.	ASEAN-Australia-New Zealand	RVC 40%   or CTH	Co-equal

Note:

RVC :  Regional Value Content or contents from the parties to the FTAs through accumulation;

CC :  Change in Chapter at Customs HS Code 2 digits Level;

CTH :  Change in Tariff Heading at Customs HS Code 4 digits Level; and

CTSH:  Change in Tariff Sub-Heading at Customs HS Code 6 digits Level.  

 

Examples of Wholly Obtained Products include:

·         forestry products,

·         fruits,

·         flowers,

·         vegetables,

·         trees,

·         seaweed,

·         fungi and live plants

·         plant products grown and harvested in the Party to FTA

·         animal life, including mammals, birds, fish, crustaceans, mollusc, reptiles and living organisms born and raised in the Party to the FTA.  

 

Calculating RVC 

 

Description of Product :  Laminated Finger-jointed Moulding

HS/ AHTN Code No :  4409 10 400

Importing Countries :  Korea 

Description of Materials / components used	HS Code/AHTN Code	Country of Origin	Value (RM)
Logs	4403 41 230	Malaysia	800
Glue	3506 91 000	USA (considered non-originating)	125.50
Labour Cost:			100
Overhead Cost:			105.25
Other Costs:			130
Total Production Cost			1260.75
Profit:			150.00
FOB Price (unit/kg/etc):			1410.75

 

RVC = FOB Price – Value of Non-Originating Materials   x 100%

                        FOB Price 

        RVC     =  1410.75 – 125.50 x 100%

      1410.75   

=   91.10%  

In this example, the non-originating material is glue from USA. Labour cost, overhead, other cost and profits are considered originating. The product is eligible for the preferential rate as the RVC calculated shows the local material used is more than 40% i.e. 91.10%.  
 
 

 

Regional Accumulation 

Description of materials / Component used	HS/AHTN Code	Country of origin	Value (RM)
Fabric	6001.91.000	XYZ Sdn Bhd	8.00
Trim/Accessories	4908.10.000	Saudi Arabia (considered non-originating)	2.00
Elastic/Thread	5826.10.000	Japan – Kiko EYR Ltd	0.53
Labour Cost:			3.50
Overhead cost:			0.28
Other Costs			0.21
Total production Cost			14.52
Profit			0.35
Ex-Factory Price/FOB Price (unit/kg/etc):			14.87

 

Regional Value Content (RVC) Calculation: 

RVC = FOB Price– Value of Non-Originating Materials) x 100 %

            FOB Price  

      = 14.87 – (2.00) x 100

            14.87 

      = 87%