Rules of Origin (Textile & Clothing only) at a Glance

Rules of Origin (ROO) are the criteria used to determine where a good has been made, for the purpose of ensuring that only the products of countries which are party to the FTA, enjoy tariff preferences (elimination/reduction of import duties).

Types of Rules of Origin (ROO)

  • Wholly obtained

  • Value content (VC) or regional value content (RVC)

  • Change in Tariff Classification (CTC)

  • Process Rule

  • Product Special Rule (SPR)

  • Other substantial transformations, such as chemical reactions

Malaysia - Japan FTA

Product Special Rule (PSR) for textiles and Clothing :

  • Two Process Rule :
                               - spinning
                               - weaving
                               - bleaching
                               - dyeing
                               - printing
                               - finishing

  • Flexibility - one of the process could be done within ASEAN countries

ASEAN-China FTA

Product Special Rule (PSR) for textiles and textile products adopted from CEPT ROO- The Alternative Rule

  • Exporters can choose to use 40% value content rule or

  • Change of tariff heading (CTH)

ASEAN-Korea FTA

Product Special Rule (PSR) for textiles and textile products :

  • Chapter 50-59 : Generally change of tariff classification (CTC) or Regional Value Content (RVC) 40%. Certain tariff lines require CTC accompanied by at least two preparatory or finishing operations;

  • Chapter 61-63 : CTC provided that the goods is both cut and a sewn in the territory of any party

Malaysia - Pakistan FTA

Product Special Rule (PSR) for textiles and textile products -  One process rule :  
                           - spinning
                           - weaving
                           - bleaching
                           - dyeing
                           - printing
                           - finishing
 

Certificate of Origin - to enjoy preferential duty treatment

  • Form D for export to ASEAN countries

  • Form MJEPA for Malaysia-Japan FTA

  • Form E for ASEAN-China FTA

  • Form AK for ASEAN-Korea

  • Form MPFTA for Malaysian-Pakistan FTA

Posting date 03090

 

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