Origin criteria

The GSP provisions and the EU-Japan agreement stipulate that the proof of origin should state how the goods obtained their origin. Importers importing originating goods using importer’s knowledge must also be familiar with the origin criteria of the goods.

The requisite information differs from one agreement to another.

GSP

The exporter should state, in the statement on origin, the origin criterion that apply to the goods by entering one of the following codes:

Japan

According to the rules on origin in Chapter 3 and Annexes 3-A-F, the exporter is required to indicate the origin criterion or criteria that apply to the goods by entering one or several codes. Importers claiming preferential tariff treatment using importer’s knowledge must also be familiar with the origin criteria of the goods.

A – Wholly obtained in accordance with Article 3.3.

Article 3.3 lists goods considered to be wholly obtained in the EU or Japan. Examples of these include:

• A live animal born and raised there, and products obtained from live animals raised there;
  
• a plant or plant product, grown, cultivated, harvested, picked or gathered there;
• a mineral or other naturally occurring substance extracted or taken there.

Examples of when to use Origin Criterion A:

Lumber from a forest in the EU that has been harvested here.

B – Wholly obtained from materials originating in the export country (EU or Japan) in accordance with Article 3.2.1 (b)

Materials originating in the EU or Japan do not need to be processed to be considered originating goods when exported to the EU or Japan respectively.

Examples of when to use Origin Criterion B:

Goods that have been obtained using only materials originating in any of the EU member states, and are being exported to Japan

C – Products produced using non-originating materials in accordance with Article 3.2.1 (c), provided they satisfy all applicable requirements of Annex 3-B

Materials used to obtain the goods, originating anywhere other than the EU or Japan, must have been processed in the EU or Japan. The provisions in Annex 3-B, known as the List Rules, must be met and the processing must be always be more extensive than “insufficient processing”, as set out in Article 3.4.

The type of rule of origin applied to the product must be indicated:

1. A change of classification based on the rate of customs duty (number substitution).
   The following abbreviations are used for changes of tariff classification in the agreement with Japan:
   CC: Change of Chapter – a change to a different chapter (the two first numbers in the commodity code)
   CTH: Change of Tariff Heading – a change to a different HS number (the four first numbers in the commodity code)
   CTSH: Change of Tariff Subheading – a change to a HS sub-header (the six first numbers in the commodity code).
   
   Examples of when to use Origin Criterion C1:
   Tyres with HS no. 4011 are manufactured in Japan using materials originating in Japan and Vietnam. There are three alternative rules to choose between for this HS no.: CTH, MaxNOM 50% (ex works) or RVC 55% (free on board). The manufacturer fulfils rule CTH, which means that materials that do not originate in the EU or Japan must be classified using a different HS number than the final product. The materials originating in Vietnam are classified using a different HS number than 4011.
   
2. The maximum value of non-originating materials or the lowest regional value content (value rule).
   The following abbreviations are used for value rules in the agreement with Japan:
   MaxNOM: Maximum value of Non-Originating Materials – the highest value of non-originating materials, expressed as a percentage.
   RVC: Regional Value Content – the lowest regional value content of a product, expressed as a percentage.
   VNM: Value of Non-Originating Materials – the value of non-originating materials used to obtain the product.
   
   Find out how to calculate these values for your product in Note 4, Annex 3-A.
   
   Examples of when to use Origin Criterion C2:
   Goods with HS no. 3926 are manufactured in the EU using materials originating in EU and Morocco. There are three alternative rules for this HS number – CTH, MaxNOM 50% (ex works) or RVC 55% (free on board). Given that the goods only contain 45% materials originating in Morocco, the exporter fulfils the MaxNOM 50% value rule (ex works) according to the guide in Note 4, Annex 3-A.
   
   
3. Special production process
   Some goods can obtain origin by being obtained by a special production process. In some cases, there is a definition of the production process in Note 5, Annex 3-B.
   
   Examples of when to use Origin Criterion C3:
   Biodiesel with HS subheading 3824 99, obtained in the EU via transesterification of materials originating in NO. For biodiesel, the rule Production where biodiesel is obtained via transesterification, esterification or hydrogenation applies.
   
   
4. Provisions for certain vehicles and parts of vehicles in accordance with
   Annex 3-B-1.
   For some goods used to obtain certain vehicles there are special provisions in an addendum to Annex 3-B. These provisions apply to goods used to manufacture motor vehicles with HS subheading 8703 21-8703 90. Goods in addendum 3-B-1 must meet the provisions in 3-B or the provision in addendum 3-B-1.
   
   Examples of when to use Origin Criterion C4:
   Glass, in accordance with HS subheading 7077 11, to be used to manufacture personal vehicles, in accordance with HS subheading 8703 21, is manufactured in Japan using materials originating in Japan and Singapore. In addition to the rules CTH MaxNOM 50% (ex works) and RVC 55% (free on board) in Annex 3-B, the rule Tempering of a non-originating material provided that non-originating materials of heading 70.07 are not used, found in Addendum 3-B-1 also applies to this HS subheading. The manufacturer complies with the provision in Addendum 3-B-1.

D −  Wholly or partially obtained from materials originating in the receiving country (Japan or the EU) in accordance with Article 3.5.

The agreement provides for the opportunity to count materials originating in the receiving country as originating materials, which is referred to in the agreement as accumulation.

Examples of when to use Origin Criterion D:
Goods manufactured in the EU using materials originating in EU and Japan.

E −  The tolerance provision of article 3.6 has been applied

If a non-originating material used to obtain a product does not correspond with the requirements in Annex 3-B, the tolerance provision of 10% may still allow the use of the material. Remember that you cannot apply the tolerance provision in article 3.6 to extent a value rule, and that it only applies to chapter 1-49 and 64-97. For textiles and textile products in accordance with 50-63 there are separate tolerance provisions in Annex 3-A.

Examples of when to use Origin Criterion E:
Goods with HS no. 7404 are manufactured in the EU using materials originating in China. According to the provision for 7404, all materials used to obtain the goods must be classified by a different HS number than the finished goods. One of the materials used to obtain the goods is classified according to 7404, but the value of the material does not exceed 10% of the price ex works of the goods.

Rules of origin in Chapter 3 and Annexes 3-A-F of the Japan Agreement. Pdf, 6.6 MB.

Information from the European Commission concerning the free trade agreement with Japan.

If you are not the manufacturer of the goods

If you are not the manufacturer of the goods, you can request that your supplier provide information about origin criteria in the supplier's declaration.

Supplier’s declarations