Rule 6 - Not-wholly produced or obtained - Interim Rules of Origin for Agreement between the Republic of India and the Kingdom of Thailand

Rule 6. Not-wholly produced or obtained.— (a) For the purposes of rule 4(b), the following general criteria should be applied, provided that the final process of the manufacture is performed within the territory of the exporting party and subject to rule 8 : (i) local value added content criterion, (ii) a change in tariff classification criterion between the export product and all non-originating materials used in its production. (b) Products specified in Annexure-A which fulfil one or a combination of the above criteria shall be considered as originating from the exporting Party provided that the final process of the manufacture is performed within the territory of the exporting Party and subject to Rule 8. (c) For the products not specified in Annexure-A as per Rule 6(b), the following criteria shall be applied in determining the origin of not-wholly produced or obtained products provided that the final process of the manufacture is performed within the territory of the exporting Party and subject to Rule 8 : (i) local value added content of 40% meaning thereby that the total value of materials originating from the countries other than the Parties or of undetermined origin (that is non-originating materials) used does not exceed 60% of the FOB value of the product so produced or obtained; and (ii) change in tariff heading at the 4 digit level of Harmonised System where the final export product is classified differently from all the non-originating materials used in its production. (d) The formula for calculation of local value added content is as follows : FOB value of the export product - Value of non originating materials x 100 = % of Local Value Added Content (LVAC) FOB value of the export product (e) The value of the non-originating materials shall be : (i) the CIF value at the time of importation of the materials, parts or produce; and/or (ii) the earliest ascertained price paid for the materials, parts or produce of undetermined origin in the territory of the Party where the working or processing takes place.