Measures of the Customs of the People's Republic of China for Management of Orig

Article 5 Where the content of materials not originally produced in a member state does not exceed 55% of the goods and furthermore the last production procedure is completed in such state, such state shall be deemed as the origin of the goods. The materials not originally produced in a country include the imported materials not originally produced and those whose origins are unknown which are used in the process of production.

The formula for calculation of the content of materials not originally produced as mentioned in Paragraph 1 of this article is as follows:
　

Value of imported materials not originally produced + value iof materials whose origins are unknown
________________________________________× 100%≤55%　　　　
FOB

The value of imported materials not originally produced refers to the CIF price of raw material, parts and products which can be determined in time of import and the value of materials whose origins are unknown refers to the price paid for the raw materials, parts and products whose origins can be determined earliest as unknown in the member states which conduct production or processing of goods.

In the event the member state is the least developed country, the content of materials not originally produced may not exceed 65%.

Calculation of the content of materials not originally produced as mentioned in this article shall comply with recognized accounting principles and Agreement on Customs Valuation.

Article 6 In the event the goods processed or manufactured in the member states of Asia-Pacific Trade Agreement comply with the particular standards of products under Asia-Pacific Trade Agreement, they shall be deemed as originally produced in member states of Asia-Pacific Trade Agreement. The standards are an integral part hereof and will be announced separately by General Administration of Customs.

Article 7 Where the originally produced goods complying with the requirements of Article 3 hereof are used as raw materials for production in a member state of the final products enjoying deduction of tariff and furthermore the total content of materials of each member state of the final products is not lower than 60% of the FOB price of the final products, the materials may be deemed as the original goods of the member state which manufacture or process the final products.

If the originally produced goods complying with the requirements of Article 3 hereof are used as raw materials for production of the final products enjoying deduction of tariff in a member state which is the least developed country and furthermore the total content of material of each member state of the final products is not lower than 50% of the FOB price of the final products, the materials may be deemed as the original goods of the least developed member state.