CEFTA
Substantial or sufficient transformation (sufficiently worked or processed) criterion
There are three different types of rules that qualify as ‘working or processing operations’, namely:
- A criterion of a change in tariff classification- the production process results in a change of tariff classification between the non-originating materials and the final product. For example, the production of paper (Harmonised System Chapter 48) from non-originating pulp (Harmonised System Chapter 47);
- A criterion of value addition(in ad valorempercentages) - the value of all non-originating materials used may not exceed a given percentage of the product’s ex-works price. The ex-works price refers to a pricing method that is based on the cost of the goods or products at the factory or manufacturing site. The ex-works price includes the value of all the materials used and all other costs related to its production, minus any internal taxes, which are, or may be, repaid when the product obtained is exported; and
- A criterion of manufacturing or processing operations(technical requirement) - a specific production process is required. For example, spinning fibres into yarns. Such rules are mostly used in the textile, clothing, and chemical sectors.