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Statutory Instruments

2020 No. 1436

Exiting The European Union

Customs

The Customs (Origin of Chargeable Goods: Trade Preference Scheme) (EU Exit) Regulations 2020

Made

at 12.30 p.m. on 15th December 2020

Laid before the House of Commons

16th December 2020

Coming into force in accordance with regulation 1

The Treasury, in exercise of the powers conferred by sections 17(6)(b) to (d) and (7)(a), 32(7)(a) and (8)(a) and (b), 37(3)(b), 51(1)(b) and 52(5) of, and paragraph 1(3)(c) of Schedule 7 to, the Taxation (Cross-border Trade) Act 2018( 1) (“the Act”), make the following Regulations.

In accordance with section 52(2) of the Act, the Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the European Union, that the following Regulations come into force on such day as the Treasury may by regulations under section 52 of the Act appoint.

In accordance with section 17(8) of that Act, the following Regulations have been made on the recommendation of the Secretary of State.

Citation and commencement

1. These Regulations may be cited as the Customs (Origin of Chargeable Goods: Trade Preference Scheme) (EU Exit) Regulations 2020 and come into force on such day as the Treasury may by regulations under section 52 of the Act appoint.

Interpretation

2. In these Regulations—

“the Act” means the Taxation (Cross-border Trade) Act 2018;

“the Tariff Regulations” means the Customs Tariff (Establishment) (EU Exit) Regulations 2020( 2);

“the TPS Regulations” means the Trade Preference Scheme (EU Exit) Regulations 2020( 3);

“beneficiary country” means a “qualifying GSP country” which has the meaning given in regulation 4(1) of the TPS Regulations( 4);

“Chapter” means a chapter of the Goods Classification Table;

“exporter”, in relation to goods for exportation or for use as stores, includes the shipper of the goods and any person performing in relation to an aircraft functions corresponding with those of a shipper;

“ex-works price” means—

(a)

the price paid for the goods ex-works to the person who carried out the last processing (“P”), including the value of all the materials used and all other costs relating to their production except any internal taxes which are, or may be, repaid when the goods obtained are exported, or

(b)

where the actual price paid does not reflect all the costs relating to the manufacturing of the goods which are actually incurred in the country of production, the sum of all those costs except any internal taxes which are, or may be, repaid when the goods obtained are exported,

and, in paragraph (a), if a manufacturer was subcontracted to carry out the last processing of the goods, the person who contracted with the manufacturer to carry out that processing is taken to be the person, P, for the purposes of that provision;

“Goods Classification Table” has the meaning given in regulation 1(2) of the Tariff Regulations;

“GSP” means the Generalised Scheme of Preferences established under regulation 3 of the TPS Regulations;

“heading” means a heading of the Goods Classification Table;

“material” means any ingredient, raw material, component or part, used in the manufacture of the goods;

“maximum content of non-originating materials” means the maximum content of such materials permitted under these Regulations for a stage of manufacture to be considered as an important stage of manufacture expressed as a percentage of—

(a)

the ex-works price of the good, or

(b)

the net weight of non-originating materials used which fall under a group of Chapters, a Chapter, a heading or a sub-heading specified in the table in Part 2 of Schedule 1 to these Regulations;

“net weight” means, in relation to goods, the weight of the goods themselves without packing materials or packing containers;

“non-originating material” means material not originating from the beneficiary country concerned;

“originating material” means material originating from the beneficiary country concerned;

“qualifying goods” means “qualifying GSP goods” which has the meaning given in regulation 4(2) of the TPS Regulations;

“regional group” means the group of countries or territories listed in Column 1, or the group of countries or territories listed in Column 2, of the table in Schedule 3;

“sub-heading” means a sub-heading of the Goods Classification Table;

“value”, in relation to a material, means—

(a)

the customs value, as determined in accordance with Article VII of GATT, at the time of importation of the material, or

(b)

if that value is not known and cannot be ascertained, the first price proved to have been paid to the satisfaction of an HMRC officer for the material in the United Kingdom or in the beneficiary country concerned,

and in paragraph (a), “GATT” means the General Agreement on Tariffs and Trade 1994 (GATT) signed in Geneva on 12th April 1979( 5) (being part of Annex 1A to the agreement establishing the World Trade Organization (WTO) signed in Marrakesh on 15th April 1994( 6)).

Conditions that must be met for goods to be regarded as originating from a beneficiary country

3. Qualifying goods listed in Column 2 of the table in Part 2 of Schedule 1 are to be regarded as originating from a beneficiary country if—

(a) the goods are wholly obtained in that beneficiary country in accordance with regulation 6;

(b) where the goods are obtained in two or more countries or territories, that beneficiary country is the last country or territory in which processing of the goods which constitutes an important stage of manufacture has taken place in accordance with regulation 7;

(d) in the case of returned goods, the requirements set out in regulation 19 are met; and

(e) the evidence requirements set out in regulation 4 are met.

Evidence required for goods to be regarded as originating from a beneficiary country

4. The evidence requirements referred to in regulation 3(e) are that—

(a) the qualifying goods are accompanied by the documents or other evidence specified in a public notice given by HMRC Commissioners under paragraph 7(1)(b) of Schedule 1 to the Act, and

(b) the exporter of the goods has complied, to the satisfaction of an HMRC officer, with the applicable arrangements and obligations specified in a notice published by HMRC Commissioners relating to the provision of evidence of the origin of the goods.

HMRC notices of arrangements relating to the provision and verification of evidence

5. HMRC Commissioners may publish a notice relating to one or more of the following—

(a) the replacement of any documents or other evidence referred to in regulation 4(a);

(b) the arrangements for verification of any evidence referred to in regulation 4(a);

(c) the arrangements and obligations relating to the provision of evidence of the origin of the goods referred to in regulation 4(b).

Wholly obtained goods

6.—(1) In Part 1 of the Act and in Column 3 of the table in Part 2 of Schedule 1, any reference to goods being wholly obtained in a country or territory includes the following specified cases—

(a) mineral products extracted from the soil or seabed of the country or territory;

(b) live animals born and raised in the country or territory;

(d) products from slaughtered animals born and raised in the country or territory;

(e) products obtained by hunting, fishing or harvesting conducted in the country or territory;

(f) products of aquaculture where the fish, crustaceans and molluscs are born and raised in the country or territory;

(g) products of sea fishing and other products taken from the sea outside any territorial sea by vessels of the country or territory;

(h) products made on board the factory ships of the country or territory exclusively from the products referred to in sub-paragraph (g);

(i) used articles collected in the country or territory and fit only for the recovery of raw materials;

(j) products extracted from the seabed or below the seabed which is situated outside any territorial sea provided the country or territory has exclusive exploitation rights;

(k) goods produced in the country or territory exclusively from the things specified in sub-paragraphs (a) to (j).

(2) In paragraph (1)(g) and (h), “vessels of the country or territory” and “factory ships of the country or territory” apply only to vessels and factory ships which—

(a) are registered in the beneficiary country or in the United Kingdom;

(b) sail under the flag of the beneficiary country or the United Kingdom; and

(i) at least 50% owned by nationals of the beneficiary country, the United Kingdom or a member State of the European Union; or

(ii) owned by bodies corporate which—

(aa) have their head office and principal place of business in the beneficiary country, the United Kingdom or a member State of the European Union, and

(bb) are at least 50% owned by public bodies or nationals of the beneficiary country, the United Kingdom or a member State of the European Union.

(3) For the purposes of intra-regional cumulation under regulation 16, the goods must be regarded as originating from the beneficiary country under whose flag the vessel or factory ship sails.

Processing: important stage of manufacture condition

7.—(1) Subject to the derogation in regulation 9(1), if the processing of goods meets the conditions specified for the goods in Schedule 1, that processing constitutes an important stage of manufacture.

(2) But the processing of goods only by one or more of the following operations does not constitute an important stage of manufacture—

(a) preserving operations to ensure that the goods retain their condition during transport and storage;

(b) the breaking up or assembly of packages;

(d) the ironing of textiles;

(e) simple painting and polishing operations;

(f) the husking or partial or total milling of rice or the polishing or glazing of cereals or rice;

(g) operations to colour or flavour sugar or form sugar lumps or the partial or total milling of crystal sugar;

(h) the peeling, stoning or shelling of fruits, nuts or vegetables;

(i) sharpening, simple grinding or simple cutting;

(j) sifting, screening, classifying, sorting, including the making-up of sets of articles;

(k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;

(l) the affixing or printing of marks, labels, logos or other like distinguishing signs on goods or their packaging;

(m) the simple mixing of goods, whether or not of different kinds or the mixing of sugar with any material;

(n) the simple addition of water or dilution, dehydration or denaturation of goods;

(o) the simple assembly of parts of articles to constitute a complete article or the disassembly of goods into parts;

(p) the slaughtering of animals.

(3) An operation described in paragraph (2) is to be regarded as simple if no specialist skills or machines, apparatus or tools especially produced or installed for it are required for it to be carried out.

Averages

8.—(1) Where the conditions specified in the table in Part 2 of Schedule 1 refer to a maximum content of non-originating materials, this may be determined by reference to the average ex-works price charged for goods sold, and the average value of the non-originating materials used in the manufacture of the goods, during the reference period.

(2) An exporter who has applied a method of determination set out in paragraph (1) must apply the same method in respect of the fiscal year following the reference period.

(3) But the exporter may cease to apply that method if, during a given fiscal year or shorter period of at least three months, the exporter records that fluctuations in costs or currency rates which justified such a method have ceased.

(4) In this regulation—

“fiscal year” means the year, beginning with the same date each year, defined by the exporter;

“reference period” means the preceding fiscal year or, where figures for a complete preceding fiscal year are not available, a shorter period of at least three months.

Derogation in respect of use of non-originating materials

9.—(1) Non-originating materials which, according to the conditions set out in the table in Part 2 of Schedule 1, are not to be used in the manufacture of the goods, may nevertheless be used provided that—

(a) in relation to goods falling within any of Chapters 2 and 4 to 24 except processed fishery goods mentioned in Chapter 16, the net weight of the non-originating materials does not exceed 15% of the net weight of the goods;

(b) in relation to goods to which sub-paragraph (a) does not apply except goods falling within any of Chapters 50 to 63, for which the allowances mentioned in Notes 4 and 5 of Part 1 of Schedule 1 apply, the total value of the non-originating materials does not exceed 15% of the ex-works price of the goods; and

(c) the percentage for the maximum content of non-originating materials in relation to the goods as specified in the table in Part 2 of Schedule 1 is not exceeded.

(2) But paragraph (1) does not apply to goods which are to be regarded as wholly obtained in a beneficiary country under regulation 6.

(3) The allowance under the derogation in paragraph (1) applies to the sum of all the materials used in the manufacture of the goods where the condition in respect of those goods as set out in the table in Part 2 of Schedule 1 is that such materials be wholly obtained in the beneficiary country but this does not affect the application of regulations 7(2) and 10(1).

Consignments of identical goods and packaging

10.—(1) For the purposes of these Regulations, if a consignment consists of a number of identical goods classified under the same heading, each of the goods must be individually taken into account.

(2) If, under Rule 5 of the Goods Classification Table Rules of Interpretation specified in section 1 of Part Two of the Tariff of the United Kingdom, packaging is included with the goods for classification purposes, it must be included in determining the origin of the goods.

(3) In this regulation, “the Tariff of the United Kingdom” has the meaning given in regulation 1(2) of the Tariff Regulations.

Accessories, spare parts and tools

11. Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle which are part of the normal equipment and included in its price or which are not separately invoiced are to be regarded as having the same origin as the piece of equipment, machine, apparatus or vehicle.

Sets

12. Goods in a set for retail sale are to be regarded as goods originating from a beneficiary country if—

(a) all the components are originating materials, or

(b) where the set is composed of a mixture of originating materials and non-originating materials, the value of the non-originating materials does not exceed 15% of the ex-works price of the set.

Neutral elements

13.—(1) In determining the origin of goods, neutral elements used to process, or used in the course of processing, the goods are to be disregarded.

(2) In this regulation, “neutral elements” means—

(a) energy in the form of fuel, or in any other form;

(b) plant or equipment, including machinery and tools;

Derogation in respect of specified goods

14.—(1) The Secretary of State may, by written notice, grant a temporary derogation in respect of specified goods from the provisions of these Regulations to a beneficiary country where one or both of the grounds set out in paragraph (2) are met.

(2) The grounds are that—

(a) circumstances temporarily deprive the beneficiary country of the ability to meet the conditions set out in these Regulations for the goods to be regarded as originating from it;

(b) the beneficiary country requires time to meet those conditions.

(3) A request for a temporary derogation by a beneficiary country under paragraph (1) must—

(a) be made in writing to the Secretary of State by the beneficiary country, and

(b) state the grounds as set out in paragraph (2)(a) or (b), or both, and provide evidence in support of the request, for the derogation.

(4) The duration of the temporary derogation must be limited to the duration of the effects of the circumstances giving rise to it or the length of time needed for the beneficiary country to meet the conditions referred to in paragraph (2)(a).

Bilateral cumulation with the British Islands, a British overseas territory, the European Union, Norway and Switzerland

15.—(1) Goods originating from the British Islands, a British overseas territory, the European Union, Norway or Switzerland are to be regarded as originating from a beneficiary country when incorporated into goods manufactured in that beneficiary country provided they have undergone processing in that beneficiary country that goes beyond the processing described in regulation 7(2).

(2) For the purposes of bilateral cumulation, these Regulations apply to exports from the British Islands, a British overseas territory, the European Union, Norway and Switzerland.

(3) But bilateral cumulation, so far as it concerns goods originating from Norway or Switzerland, does not apply in respect of goods listed in Chapters 1 to 24.

(4) In this regulation—

“bilateral cumulation” refers to the system whereby goods originating from the British Islands, a British overseas territory, the European Union, Norway or Switzerland are to be regarded as originating from a beneficiary country in the circumstances described in paragraph (1);

“British overseas territory” does not include Gibraltar or the Sovereign Base Areas of Akrotiri and Dhekelia.

Intra-regional cumulation: beneficiary countries in the same regional group

16.—(1) A beneficiary country (in this paragraph, “the cumulating GSP country”) may regard qualifying goods which under regulation 3 are to be regarded as originating from another beneficiary country in the same regional group as goods originating from the cumulating GSP country if—

(a) the materials used in the goods are further processed in, or incorporated into, goods manufactured in the cumulating GSP country;

(b) the materials used in the goods are not excluded under paragraph (3); and

(2) For the purposes of paragraph (1), goods exported from one beneficiary country to another for the purpose of intra-regional cumulation are to be regarded as originating from the last beneficiary country in which substantial processing of the goods has taken place, determined on the basis of the condition specified in the table in Part 2 of Schedule 1 that would apply if the goods were being exported to the United Kingdom.

(3) The materials listed in the second column of the table in Schedule 2 are to be excluded from intra-regional cumulation within a regional group marked “X” in the corresponding entry in the third or fourth column, or, as the case may be, in each of those columns, of that table if—

(a) the GSP rate applicable in the United Kingdom under Part 6 of the TPS Regulations is not the same for all the countries or territories concerned, and

(b) the materials concerned would benefit, through intra-regional cumulation, from a tariff treatment more favourable than the one from which they would benefit if directly exported to the United Kingdom.

(4) The conditions mentioned in paragraph (1)(c) are that—

(a) each beneficiary country must comply with the conditions relating to customs cooperation and verification of proof of origin provided for by regulation 20 of the TPS Regulations;

(b) the processing carried out in the beneficiary country where the materials are further processed or incorporated must go beyond the processing described in regulation 7(2); and

(c) in the case of textile goods, in addition to meeting the condition set out in sub-paragraph (b), the processing carried out in the beneficiary country where the materials are further processed must go beyond one or more of the following—

(i) fitting of buttons or other types of fastenings;

(ii) making of button-holes;

(iii) finishing off the ends of trouser legs and sleeves or the bottom hemming of skirts and dresses and other apparel;

(iv) hemming of handkerchiefs, table linen and other textile articles;

(v) fitting of trimmings and accessories including pockets, labels and badges;

(vi) ironing and other preparations of garments for sale ready-made.

(5) Where the condition set out in paragraph (4)(b) is not met or, in the case of textile goods, where the conditions set out in paragraph (4)(b) and (c) are not met, the goods are to be regarded as originating from the beneficiary country participating in the intra-regional cumulation from which the largest share of the value of the materials used in the manufacture of the final goods originates.

(6) For the purposes of intra-regional cumulation, these Regulations apply to exports from one beneficiary country to another.

(7) In this regulation—

“intra-regional cumulation” refers to the system whereby a beneficiary country (“C”) may regard qualifying goods from another beneficiary country in the same regional group as goods originating from C in the circumstances described in paragraph (1);

“GSP rate” has the meaning given in regulation 2(1) of the TPS Regulations.

Inter-regional cumulation: beneficiary countries in different regional groups

17.—(1) A beneficiary country (in this regulation, “the cumulating GSP country”) may regard qualifying goods which under regulation 5 are to be regarded as originating from a beneficiary country in another regional group as goods originating from the cumulating GSP country if—

(a) the materials used in the goods are further processed in, or incorporated into, goods manufactured in the cumulating GSP country;

(b) the conditions set out in paragraph (2) are met; and

(2) The conditions mentioned in paragraph (1)(b) are that—

(a) each beneficiary country must comply with the conditions relating to customs cooperation and verification of proof of origin provided for by regulation 20 of the TPS Regulations;

(b) the processing carried out in the beneficiary country where the materials are further processed or incorporated must go beyond the processing described in regulation 7(2);

(i) fitting of buttons or other types of fastenings;

(ii) making of button-holes;

(iii) finishing off the ends of trouser legs and sleeves or the bottom hemming of skirts and dresses and other apparel;

(iv) hemming of handkerchiefs, table linen and other textile articles;

(v) fitting of trimmings and accessories including pockets, labels and badges;

(vi) ironing and other preparations of garments for sale ready-made;

(d) the cumulating GSP country must have submitted a written request for the purpose, and provided evidence, to the Secretary of State of trade benefits of allowing the inter-regional cumulation; and

(e) the Secretary of State, after taking that evidence into account, is satisfied that there would be trade benefits in allowing the inter-regional cumulation.

(3) The Secretary of State may publish a notice specifying—

(a) the beneficiary countries and goods in respect of which paragraph (1) applies;

(b) the date from which the inter-regional cumulation may take effect; and

(c) if the Secretary of State considers it appropriate, the materials in respect of which the inter-regional cumulation may apply.

(4) Where the condition set out in paragraph (2)(b) is not met or, in the case of textile goods, where the conditions set out in paragraph (2)(b) and (c) are not met, the goods are to be regarded as originating from the beneficiary country participating in the inter-regional cumulation from which the largest share of the value of the materials used in the manufacture or the final goods originates.

(5) For the purposes of inter-regional cumulation, these Regulations apply to exports from one beneficiary country to another.

(6) In this regulation, “inter-regional cumulation” refers to the system whereby a beneficiary country (“C”) in a regional group may regard qualifying goods originating from a beneficiary country in another regional group as goods originating from C in the circumstances described in paragraph (1).

Extended cumulation

18.—(1) A beneficiary country (in this regulation, “the cumulating beneficiary country”) may regard qualifying goods originating from a country or territory in accordance with a trade arrangement between that country or territory to which none of regulations 15 to 17 may apply (in this regulation, “the TA country”) and the United Kingdom, implemented under section 9 of the Act (preferential rates: arrangements with countries or territories outside the UK), as goods originating from the cumulating beneficiary country if—

(a) the materials used in the goods are further processed in, or incorporated into, goods manufactured in the cumulating beneficiary country;

(b) the conditions set out in paragraph (3) are met; and

(2) Extended cumulation does not apply in respect of goods listed in Chapters 1 to 24.

(3) The conditions mentioned in paragraph (1)(b) are that—

(a) the processing carried out in the beneficiary country where the materials are further processed or incorporated must go beyond the processing described in regulation 7(2);

(b) the cumulating beneficiary country must have submitted a written request for the purpose, and provided evidence, to the Secretary of State of trade benefits of allowing the extended cumulation;

(c) the Secretary of State, after taking that evidence into account, is satisfied that there would be trade benefits in allowing the extended cumulation

(d) the TA country must have agreed to cooperate administratively with the cumulating beneficiary country.

(4) The Secretary of State may publish a notice specifying—

(a) the beneficiary countries in respect of which paragraph (1) applies;

(b) the date from which the extended cumulation may take effect;

(d) if the Secretary of State considers it appropriate, the materials in respect of which the extended cumulation may apply.

(5) In this regulation, “extended cumulation” refers to the system whereby a beneficiary country (“C”) may regard qualifying goods originating from a country or territory in accordance with a trade arrangement between that country or territory, to which none of regulations 15 to 17 may apply, and the United Kingdom, implemented under section 9 of the Act, as goods originating from C in the circumstances described in paragraph (1).

Requirements relating to the originating status of returned goods

19. If goods exported from a country or territory (“the exporting country”) to another country or territory (“the importing country”) have been returned to the exporting country, they are to be regarded as not originating from the exporting country unless it can be demonstrated to the satisfaction of an HMRC officer that the returned goods—

(a) are the same as those which were exported, and

(b) have not undergone any operations beyond those necessary to preserve their condition while in a country other than the exporting country or during transportation.

Non-manipulation requirements in relation to goods

20.—(1) The requirements mentioned in regulation 3(c) are that the goods—

(a) must be the same goods as were exported from the beneficiary country;

(b) must not have been altered or transformed in any way; and

(i) to preserve their condition, or

(ii) the adding or affixing of marks, labels, seals or any other documentation to ensure compliance with legal requirements applicable in the United Kingdom or any part of the United Kingdom.

(2) Goods may only be imported into a country or territory for the purpose of bilateral, intra-regional, inter-regional or extended cumulation under regulation 15, 16, 17 or 18 respectively if—

(a) they are the same goods as were exported from the country or territory from which they originate;

(b) they have not been altered or transformed in any way; and

(3) Goods may be stored, and consignments split up by or on behalf of the exporter, in a transit country or territory provided the goods are at all times under customs supervision in the transit country or territory.

(4) To enable an HMRC officer to verify that the requirements set out in paragraphs (1) to (3) have been met, the declarant must, if required, provide relevant evidence including any contractual transport documents (including bills of lading), evidence based on the marking or numbering of packages and other evidence related to the goods themselves.

Accounting segregation of exporters’ stocks of fungible materials

21.—(1) If fungible originating materials and fungible non-originating materials are used in the processing of goods, HMRC may, at the written request of an exporter established in the customs territory of the United Kingdom, authorise the management of the materials in the United Kingdom using the accounting segregation method for the purpose of subsequent export to a beneficiary country within the framework of bilateral cumulation, without keeping the materials on separate stocks.

(2) HMRC may make the granting of the authorisation referred to in paragraph (1) subject to any conditions they deem appropriate but may grant it only if, by use of the method referred to in paragraph (1), it can be ensured that, at any time, the quantity of goods obtained which could be regarded as originating from the United Kingdom is the same as the number that would have been obtained by using a method of physical segregation of the stocks.

(3) If authorised, the method must be applied and its application recorded on the basis of the general accounting principles applicable in the United Kingdom.

(4) The exporter must apply for proofs of origin for the quantity of goods which may be regarded as originating from the British Islands and must, if required, provide a statement as to how the quantities have been managed.

(5) In paragraph (1)—

“bilateral cumulation” has the meaning given in regulation 15(4);

“fungible” means, in relation to materials, materials which, once incorporated into the finished goods—

(a)

are of the same kind and commercial quality;

(b)

have the same technical and physical characteristics; and

(c)

cannot be distinguished from each other.

David Rutley

Maggie Throup

Two of the Lords Commissioners of Her Majesty’s Treasury

At 12.30 p.m. on 15th December 2020

Regulation 7(1)

SCHEDULE 1 Conditions which must be met for the processing of goods to constitute an important stage of manufacture

PART 1 Introductory notes

Note 1 – The structure of the table in Part 2 of this Schedule

1.1. Where the entry in Column 1 is preceded by ‘ex’, the condition in Column 3 applies only to the part of that heading as described in Column 2.

1.2. Where several headings or sub-headings are grouped together in Column 1 or a Chapter number is given and the description of goods in Column 2 is therefore given in general terms, the corresponding condition in Column 3 applies to all goods which are classified in headings of the Chapter or in any of the headings or sub-headings grouped together in Column 1.

1.3. Where there are different conditions in the table applying to different goods within a heading, each indent contains the description of that part of the heading covered by the corresponding condition in Column 3.

1.4. Where Column 3 is split into two sub-columns, the reference to “LDCs” in sub-column (a) is a reference to countries or territories listed as “least developed countries” in Part 2 of Schedule 3 to the Act and the condition set out in sub-column (b) applicable to all other beneficiary countries is also applicable to exports from the British Islands, a British overseas territory, the European Union, Norway or Switzerland to a beneficiary country for the purposes of bilateral cumulation under regulation 15 of these Regulations.

1.5. Where a condition specifies that a good must be manufactured from a particular material, the condition does not prevent the use also of other materials which, because of their inherent nature, cannot meet the condition.

Note 2 – General provisions concerning certain agricultural goods

2.1. Agricultural goods falling within Chapters 6, 7, 8, 9, 10, 12 and heading 2401 (unmanufactured tobacco; tobacco refuse) which are grown or harvested in a beneficiary country are to be treated as originating from that country, even if grown from seeds, bulbs, rootstock, cuttings, grafts, shoots, buds, or other live parts of plants imported from another country or territory.

2.2. In cases where the content of non-originating material in a good is sugar and is subject to limitations, the weight of sugars of headings 1701 (sucrose) and 1702 (e.g., fructose, glucose, lactose, maltose, isoglucose or invert sugar) used in the manufacture of the final good and used in the manufacture of the non-originating materials incorporated in the final good is taken into account for the calculation of such limitations.

Note 3 - Terminology used in respect of certain textile goods

3.1. The term “natural fibres” as used in the table refers to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres which have been carded, combed or otherwise processed but which have not been spun. The term includes horsehair of heading 0503, silk of headings 5002 and 5003, wool-fibres and fine or coarse animal hair of headings 5101 to 5105, cotton fibres of headings 5201 to 5203 and other vegetable fibres of headings 5301 to 5305.

3.2. The terms “textile pulp”, “chemical materials” and “paper-making materials” as used in the table describe the materials not classified in Chapters 50 to 63 which can be used to manufacture artificial, synthetic or paper fibres or yarns.

3.3. The term “man-made staple fibres” as used in the table refers to synthetic or artificial filament tow, staple fibres or waste, of headings 5501 to 5507.

Note 4 - Tolerances applicable to goods made of a mixture of textile materials

4.1. Where, in relation to a good in the table, reference is made to this Note, the conditions set out in Column 3 are not to be applied to any basic textile materials used in the manufacture of the good and which, taken together, represent 10% or less of the total weight of all the basic textile materials used (see also Notes 4.3 and 4.4).

4.2. However, the tolerance mentioned in Note 4.1 may be applied only to mixed goods which have been made from two or more basic textile materials. The following are the basic textile materials:

silk;
wool;
coarse animal hair;
fine animal hair;
horsehair;
cotton;
paper-making materials and paper;
flax;
true hemp;
jute and other textile bast fibres;
sisal and other textile fibres of the genus Agave;
coconut, abaca, ramie and other vegetable textile fibres;
synthetic man-made filaments;
artificial man-made filaments;
current-conducting filaments;
synthetic man-made staple fibres of polypropylene;
synthetic man-made staple fibres of polyester;
synthetic man-made staple fibres of polyamide;
synthetic man-made staple fibres of polyacrylonitrile;
synthetic man-made staple fibres of polyimide;
synthetic man-made staple fibres of polytetrafluoroethylene;
synthetic man-made staple fibres of poly(phenylene sulphide);
synthetic man-made staple fibres of poly(vinyl chloride);
other synthetic man-made staple fibres;
artificial man-made staple fibres of viscose;
other artificial man-made staple fibres;
yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped;
yarn made of polyurethane segmented with flexible segments of polyester, whether or not gimped;
goods of heading 5605 (metallised yarn) incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film;
other goods of heading 5605;
glass fibres;
metal fibres.

Example:

A yarn, of heading 5205, made from cotton fibres of heading 5203 and synthetic staple fibres of heading 5506, is a mixed yarn. Therefore, non-originating materials which are synthetic staple fibres which do not satisfy the conditions may be used, provided that their total weight does not exceed 10% of the weight of the yarn.

Example:

A woollen fabric, of heading 5112, made from woollen yarn of heading 5107 and synthetic yarn of staple fibres of heading 5509, is a mixed fabric. Therefore, synthetic yarn which does not satisfy the conditions, or woollen yarn which does not satisfy the conditions, or a combination of the two, may be used, provided that their total weight does not exceed 10% of the weight of the fabric.

Example:

Tufted textile fabric, of heading 5802, made from cotton yarn of heading 5205 and cotton fabric of heading 5210, is only a mixed good if the cotton fabric is itself a mixed fabric made from yarns classified in two separate headings, or if the cotton yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton yarn of heading 5205 and synthetic fabric of heading 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is, accordingly, a mixed good.

4.3. In the case of goods incorporating “yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped”, the tolerance is 20% in respect of this yarn.

4.4. In the case of goods incorporating “strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film”, the tolerance is 30% in respect of this strip.

Note 5 — Other tolerances applicable to certain textile goods

5.1. Where, in the table, reference is made to this Note, textile materials which do not satisfy the condition set out in Column 3 for the made-up good concerned, may be used, provided that they are classified in a heading other than that of the good and that their value does not exceed 8% of the ex-works price of the good.

5.2. Without prejudice to Note 5.3, materials which are not classified within Chapters 50 to 63 may be used freely in the manufacture of textile goods, whether or not they contain textiles.

Example:

If a condition in the table provides that, for a particular textile item (such as trousers), yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners, even though slide-fasteners normally contain textiles.

5.3. Where a percentage-rule applies, the value of materials which are not classified within Chapters 50 to 63 must be taken into account when calculating the value of the non-originating materials incorporated.

Note 6— Definitions of specific processes and simple operations carried out in respect of certain goods of Chapter 27

6.1. For the purposes of headings ex 2707 and 2713, the “specific processes” are the following:

vacuum-distillation;
redistillation by a very thorough fractionation-process( 7);
cracking;
reforming;
extraction by means of selective solvents;
the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;
polymerisation;
alkylation;
isomerisation.

6.2. For the purposes of headings 2710, 2711 and 2712, the “specific processes” are the following:

vacuum-distillation;
redistillation by a very thorough fractionation-process ( 8);
cracking;
reforming;
extraction by means of selective solvents;
the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;
polymerisation;
alkylation;
isomerisation;
in respect of heavy oils of heading ex 2710 only, desulphurisation with hydrogen, resulting in a reduction of at least 85% of the sulphur-content of the goods processed (ASTM D 1266-59 T method ( 9));
in respect of goods of heading 2710 only, deparaffining by a process other than filtering;
in respect of heavy oils of heading ex 2710 only, treatment with hydrogen, at a pressure of more than 20 bar and a temperature of more than 250 °C, with the use of a catalyst, other than to effect desulphurisation, when the hydrogen constitutes an active element in a chemical reaction. However, the further treatment, with hydrogen, of lubricating oils of heading ex 2710 (e.g. hydrofinishing or decolourisation), in order, more especially, to improve colour or stability is not to be deemed to be a specific process;
in respect of fuel oils of heading ex 2710 only, atmospheric distillation, on condition that less than 30% of these goods distils, by volume, including losses, at 300 °C, by the ASTM D 86 method ( 10);
in respect of heavy oils other than gas oils and fuel oils of heading ex 2710 only, treatment by means of a high-frequency electrical brush-discharge;
in respect of crude goods (other than petroleum jelly, ozokerite, lignite wax or peat wax, paraffin wax containing by weight less than 0.75% of oil) of heading ex 2712 only, de-oiling by fractional crystallisation.

6.3. For the purposes of headings ex 2707 and 2713, simple operations, such as cleaning, decanting, desalting, water-separation, filtering, colouring, marking, obtaining a sulphur-content as a result of mixing goods with different sulphur-contents, or any combination of these operations or like operations, do not constitute an important stage of manufacture.

PART 2 Conditions which must be met for the processing of goods to constitute an important stage of manufacture

Heading	Description of goods	Conditions which must be met for the processing of the goods to constitute an important stage of manufacture for the purposes of regulation 7(1) of these Regulations
(1)	(2)	(3)
⁽¹⁾ See Note 2.2 in Part 1 of this Schedule.
⁽²⁾ For the special conditions relating to “specific processes”, see Notes 6.1 and 6.3 in Part 1 of this Schedule.
⁽³⁾ For the special conditions relating to “specific processes”, see Note 6.2 in Part 1 of this Schedule.
⁽⁴⁾ A “group” is regarded as any part of the heading separated from the rest by a semi-colon.
⁽⁵⁾ In the case of the goods composed of materials classified within both headings 3901 to 3906, on the one hand, and within headings 3907 to 3911, on the other hand, this restriction only applies to that group of materials which predominates by weight in the good.
⁽⁶⁾ The following foils are to be considered as highly transparent: foils, the optical dimming of which, measured according to ASTM-D 1003-16( 11) by Gardner Hazemeter (i.e. Hazefactor), is less than 2%.
⁽⁷⁾ For special conditions relating to goods made of a mixture of textile materials, see Note 4 in Part 1 of this Schedule.
⁽⁸⁾ The use of this material is restricted to the manufacture of woven fabrics of a kind used in paper-making machinery.
⁽⁹⁾ See Note 5 in Part 1 of this Schedule.
⁽¹⁰⁾ See Note 4 in Part 1 of this Schedule.
⁽¹¹⁾ For knitted or crocheted articles, not elastic or rubberised, obtained by sewing or assembling pieces of knitted or crocheted fabrics (cut out or knitted directly to shape), see Note 5 in Part 1 of this Schedule.
Chapter 1	Live animals	None if all the animals of Chapter 1 are wholly obtained in the country or territory
Chapter 2	Meat and edible meat offal	Manufacture in which all the meat and edible meat offal in the goods of this Chapter is wholly obtained in the country or territory
ex Chapter 3	Fish and crustaceans, molluscs and other aquatic invertebrates, except for:	None if the fish and crustaceans, molluscs and other aquatic invertebrates are wholly obtained in the country or territory
0304	Fish fillets and other fish meat (whether or not minced), fresh, chilled of frozen	Manufacture in which all the materials of Chapter 3 used are wholly obtained in the country or territory
0305	Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption	Manufacture in which all the materials of Chapter 3 used are wholly obtained in the country or territory
ex 0306	Crustaceans, whether in shell or not, dried, salted or in brine; crustaceans, in shell, cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption	Manufacture in which all the materials of Chapter 3 used are wholly obtained in the country or territory
ex 0307	Molluscs, whether in shell or not, dried, salted or in brine; aquatic invertebrates other than crustaceans and molluscs, dried, salted or in brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption	Manufacture in which all the materials of Chapter 3 used are wholly obtained in the country or territory
Chapter 4	Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included;	Manufacture in which: all the materials of Chapter 4 used are wholly obtained in the country or territory; and the weight of sugar ⁽¹⁾used does not exceed 40% of the weight of the final good
ex Chapter 5	Products of animal origin, not elsewhere specified or included, except for:	Manufacture from materials of any heading
ex 0511 91	Inedible fish eggs and roes	None if all the eggs and roes are wholly obtained in the country or territory
Chapter 6	Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	Manufacture in which all the materials of Chapter 6 used are wholly obtained in the country or territory
Chapter 7	Edible vegetables and certain roots and tubers	Manufacture in which all the materials of Chapter 7 used are wholly obtained in the country or territory
Chapter 8	Edible fruit and nuts; peel of citrus fruits or melons	Manufacture in which: all the fruit, nuts and peels of citrus fruits or melons of Chapter 8 used are wholly obtained in the country or territory, and the weight of sugar ⁽¹⁾used does not exceed 40% of the weight of the final good
Chapter 9	Coffee, tea, maté and spices;	Manufacture from materials of any heading
Chapter 10	Cereals	Manufacture in which all the materials of Chapter 10 used are wholly obtained in the country or territory
ex Chapter 11	Products of the milling industry; malt; starches; inulin; wheat gluten; except for:	Manufacture in which all the materials of Chapters 10 and 11, headings 0701 and 2303, and sub-heading 0710 10 used are wholly obtained in the country or territory
ex 1106	Flour, meal and powder of the dried, shelled leguminous vegetables of heading 0713	Drying and milling of leguminous vegetables of heading 0708
Chapter 12	Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	Manufacture from materials of any heading, except that of the good
Chapter 13	Lac; gums, resins and other vegetable saps and extracts	Manufacture from materials of any heading, in which the weight of sugar ⁽¹⁾used does not exceed 40% of the weight of the final good
Chapter 14	Vegetable plaiting materials; vegetable products not elsewhere specified or included	Manufacture from materials of any heading
ex Chapter 15	Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes; except for:	Manufacture from materials of any sub-heading, except that of the good
1501 to 1504	Fats from pig, poultry, bovine, sheep or goat, fish, etc.	Manufacture from materials of any heading except that of the good
1505, 1506 and 1520	Wool grease and fatty substances derived therefrom (including lanolin). Other animal fats and oils and their fractions, whether or not refined, but not chemically modified. Glycerol, crude; glycerol waters and glycerol lyes.	Manufacture from materials of any heading
1509 and 1510	Olive oil and its fractions	Manufacture in which all the vegetable materials used are wholly obtained in the country or territory
1516 and 1517	Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, other than edible fats or oils or their fractions of heading 1516	Manufacture from materials of any heading, except that of the good, in which the weight of all the materials of Chapter 4 used does not exceed 40% of the weight of the final good
Chapter 16	Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	Manufacture: from materials of any heading, except meat and edible meat offal of Chapter 2 and materials of Chapter 16 obtained from meat and edible meat offal of Chapter 2, and in which all the materials of Chapter 3 and materials of Chapter 16 obtained from fish and crustaceans, molluscs and other aquatic invertebrates of Chapter 3 used are wholly obtained in the country or territory
ex Chapter 17	Sugars and sugar confectionery; except for:	Manufacture from materials of any heading, except that of the good
ex 1702	Other sugars, including chemically pure lactose and glucose, in solid form; sugar syrups; artificial honey, whether or not mixed with natural honey; caramel	Manufacture from materials of any heading, except that of the good, in which the weight of the materials of headings 1101 to 1108, 1701 and 1703 used does not exceed 30% of the weight of the final good
ex 1702	Chemically pure maltose and fructose	Manufacture from materials of any heading including other materials of heading 1702
1704	Sugar confectionery (including white chocolate), not containing cocoa	Manufacture from materials of any heading, except that of the good, in which: the individual weight of sugar ⁽¹⁾and of the materials of Chapter 4 used does not exceed 40% of the weight of the final good, and the total combined weight of sugar ⁽¹⁾and the materials of Chapter 4 used does not exceed 60% of the weight of the final good
Chapter 18	Cocoa and cocoa preparations	Manufacture from materials of any heading, except that of the good, in which the individual weight of sugar ⁽¹⁾and of the materials of Chapter 4 used does not exceed 40% of the weight of the final good, and the total combined weight of sugar ⁽¹⁾and the materials of Chapter 4 used does not exceed 60% of the weight of the final good
Chapter 19	Preparations of cereals, flour, starch or milk; pastrycooks’ products	Manufacture from materials of any heading, except that of the good, in which: the weight of the materials of Chapters 2, 3 and 16 used does not exceed 20% of the weight of the final good, and the weight of the materials of headings 1006 and 1101 to 1108 used does not exceed 20% of the weight of the final good, and the individual weight of sugar ⁽¹⁾and of the materials of Chapter 4 used does not exceed 40% of the weight of the final good, and the total combined weight of sugar ⁽¹⁾and the materials of Chapter 4 used does not exceed 60% of the weight of the final good
ex Chapter 20	Preparations of vegetables, fruit, nuts or other parts of plants; except for:	Manufacture from materials of any heading, except that of the good, in which the weight of sugar ⁽¹⁾used does not exceed 40% of the weight of the final good
2002 and 2003	Tomatoes, mushrooms and truffles prepared or preserved otherwise than by vinegar of acetic acid	Manufacture in which all the materials of Chapters 7 and 8 used are wholly obtained in the country or territory
ex Chapter 21	Miscellaneous edible preparations; except for:	Manufacture from materials of any heading, except that of the good, in which: the individual weight of sugar ⁽¹⁾and of the materials of Chapter 4 used does not exceed 40% of the weight of the final good, and the total combined weight of sugar ⁽¹⁾and the materials of Chapter 4 used does not exceed 60% of the weight of the final good
2103	Sauces and preparations therefore; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard:
	Sauces and preparations therefore; mixed condiments and mixed seasonings	Manufacture from materials of any heading, except that of the good. However, mustard flour or meal or prepared mustard may be used
	Mustard flour and meal and prepared mustard	Manufacture from materials of any heading
Chapter 22	Beverages, spirits and vinegar	Manufacture from materials of any heading, except that of the good and headings 2207 and 2208, in which: all the materials of sub-headings 0806 10, 2009 61, 2009 69 used are wholly obtained in the country or territory, and the individual weight of sugar and of the materials of Chapter 4 used does not exceed 40% of the weight of the final good, and the total combined weight of sugar and the materials of Chapter 4 used does not exceed 60% of the weight of the final good
ex Chapter 23	Residues and waste from the food industries; prepared animal fodder; except for:	Manufacture from materials of any heading, except that of the good
ex 2303	Residues of starch manufacture	Manufacture from materials of any heading, except that of the good, in which the weight of the materials of Chapter 10 used does not exceed 20% of the weight of the final good
2309	Preparations of a kind used in animal feeding	Manufacture from materials of any heading, except that of the good, in which: all the materials of Chapters 2 and 3 used are wholly obtained in the country or territory, and the weight of materials of Chapter 10 and 11 and headings 2302 and 2303 used does not exceed 20% of the weight of the final good, and the individual weight of sugar ⁽¹⁾and of the materials of Chapter 4 used does not exceed 40% of the weight of the final good, and the total combined weight of sugar and the materials of Chapter 4 used does not exceed 60% of the weight of the final good
ex Chapter 24	Tobacco and manufactured tobacco substitutes; except for:	Manufacture from materials of any heading in which the weight of materials of Chapter 24 used does not exceed 30% of the total weight of materials of Chapter 24 used
2401	Unmanufactured tobacco; tobacco refuse	All unmanufactured tobacco and tobacco refuse of Chapter 24 is wholly obtained in the country or territory
2402	Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes	Manufacture from materials of any heading, except that of the good and of heading 2403, and in which the weight of materials of heading 2401 used does not exceed 50% of the total weight of materials of heading 2401 used
ex Chapter 25	Salt; sulphur; earths and stone; plastering materials, lime and cement; except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex 2519	Crushed natural magnesium carbonate (magnesite), in hermetically-sealed containers, and magnesium oxide, whether or not pure, other than fused magnesia or dead-burned (sintered) magnesia	Manufacture from materials of any heading, except that of the good. However, natural magnesium carbonate (magnesite) may be used
Chapter 26	Ores, slag and ash	Manufacture from materials of any heading, except that of the good
ex Chapter 27	Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes, except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex 2707	Oils in which the weight of the aromatic constituents exceeds that of the non-aromatic constituents, being oils similar to mineral oils obtained by distillation of high temperature coal tar, of which more than 65% by volume distils at a temperature of up to 250 °C (including mixtures of petroleum spirit and benzole), for use as power or heating fuels	Operations of refining and one or more specific processes ⁽²⁾ or Other operations in which all the materials used are classified within a heading other than that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 50% of the ex-works price of the good
2710	Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils	Operations of refining and one or more specific processes ⁽³⁾ or Other operations in which all the materials used are classified within a heading other than that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 50% of the ex-works price of the good
2711	Petroleum gases and other gaseous hydrocarbons	Operations of refining and one or more specific processes ⁽³⁾ or Other operations in which all the materials used are classified within a heading other than that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 50% of the ex-works price of the good
2712	Petroleum jelly; paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured	Operations of refining and one or more specific processes ⁽³⁾ or Other operations in which all the materials used are classified within a heading other than that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 50% of the ex-works price of the good
2713	Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals	Operations of refining and one or more specific processes ⁽²⁾ or Other operations in which all the materials used are classified within a heading other than that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 50% of the ex-works price of the good
ex Chapter 28	Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes; except for:	(a) Least developed countries (hereinafter “LDCs”) Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 2811	Sulphur trioxide	(a) LDCs Manufacture from sulphur dioxide or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from sulphur dioxide or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 2840	Sodium perborate	(a) LDCs Manufacture from disodium tetraborate pentahydrate or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from sulphur dioxide or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
2843	Colloidal precious metals; inorganic or organic compounds of precious metals, whether or not chemically defined; amalgams of precious metals	Manufacture from materials of any heading, including other materials of heading 2843
ex 2852	Mercury compounds of internal ethers and their halogenated, sulphonated, nitrated or nitrosated derivatives	(a) LDCs Manufacture from materials of any heading. However, the value of all the materials of heading 2909 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from disodium tetraborate pentahydrate or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
	Mercury compounds of nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds	(a) LDCs Manufacture from materials of any heading. However, the value of all the materials of headings 2852, 2932, 2933 and 2934 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading. However, the value of all the materials of heading 2909 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 29	Organic chemicals; except for:	(a) LDCs Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading. However, the value of all the materials of headings 2852, 2932, 2933 and 2934 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 2905	Metal alcoholates of alcohols of this heading and of ethanol; except for:	(a) LDCs Manufacture from materials of any heading, including other materials of heading 2905. However, metal alcoholates of this heading may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
2905 43; 2905 44; 2905 45	Mannitol; D-glucitol (sorbitol); Glycerol	(a) LDCs Manufacture from materials of any sub-heading, except that of the good. However, materials of the same sub-heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, including other materials of heading 2905. However, metal alcoholates of this heading may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
2915	Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives	(a) LDCs Manufacture from materials of any heading. However, the value of all the materials of headings 2915 and 2916 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any sub-heading, except that of the good. However, materials of the same sub-heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 2932	- Internal ethers and their halogenated, sulphonated, nitrated or nitrosated derivatives	(a) LDCs Manufacture from materials of any heading. However, the value of all the materials of heading 2909 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading. However, the value of all the materials of heading 2915 and 2916 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
	- Cyclic acetals and internal hemiacetals and their halogenated, sulphonated, nitrated or nitrosated derivatives	(a) LDCs Manufacture from materials of any heading or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading. However, the value of all the materials of heading 2909 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
2933	Heterocyclic compounds with nitrogen hetero-atom(s) only	(a) LDCs Manufacture from materials of any heading. However, the value of all the materials of headings 2932 and 2933 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
2934	Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds	(a) LDCs Manufacture from materials of any heading. However, the value of all the materials of headings 2932, 2933 and 2934 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading. However, the value of all the materials of headings 2932 and 2933 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
Chapter 30	Pharmaceutical products	Manufacture from materials of any heading
Chapter 31	Fertilisers	(a) LDCs Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading. However, the value of all the materials of headings 2932, 2933 and 2934 used must not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
Chapter 32	Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	(a) LDCs Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 33	Essential oils and resinoids; perfumery, cosmetic or toilet preparations; except for:	(a) LDCs Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
3301	Essential oils (terpeneless or not), including concretes and absolutes; resinoids; extracted oleoresins; concentrates of essential oils in fats, in fixed oils, in waxes or the like, obtained by enfleurage or maceration; terpenic by-products of the deterpenation of essential oils; aqueous distillates and aqueous solutions of essential oils	(a) LDCs Manufacture from materials of any heading, including materials of a different “group” ⁽⁴⁾in this heading. However, materials of the same group as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 34	Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, ‘dental waxes’ and dental preparations with a basis of plaster, except for:	Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex 3404	Artificial waxes and prepared waxes: - With a basis of paraffin, petroleum waxes, waxes obtained from bituminous minerals, slack wax or scale wax	Manufacture from materials of any heading
Chapter 35	Albuminoidal substances; modified starches; glues; enzymes	(a) LDCs Manufacture from materials of any heading, except that of the good, in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good, in which the value of all the materials used does not exceed 50% of the ex-works price of the good
Chapter 36	Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations	(a) LDCs Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
Chapter 37	Photographic or cinematographic goods	(a) LDCs Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 38	Miscellaneous chemical products; except for:	(a) LDCs Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 3803	Refined tall oil	(a) LDCs Refining of crude tall oil or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Refining of crude tall oil or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 3805	Spirits of sulphate turpentine, purified	(a) LDCs Purification by distillation or refining of raw spirits of sulphate turpentine or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Purification by distillation or refining of raw spirits of sulphate turpentine or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
3806 30	Ester gums	(a) LDCs Manufacture from resin acids or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from resin acids or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 3807	Wood pitch (wood tar pitch)	(a) LDCs Distillation of wood tar or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Distillation of wood tar or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
3809 10	Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included: With a basis of amylaceous substances	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
3823	Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols	(a) LDCs Manufacture from materials of any heading, including other materials of heading 3823 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, including other materials of heading 3823 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
3824 60	Sorbitol other than that of sub-heading 2905 44	(a) LDCs Manufacture from materials of any sub-heading, except that of the good and except materials of sub-heading 2905 44. However, materials of the same sub-heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any sub-heading, except that of the good and except materials of sub-heading 2905 44. However, materials of the same sub-heading as the good may be used, provided that their total value does not exceed 20% of the ex-works price of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 39	Plastics and articles thereof; except for:	(a) LDCs Manufacture from materials of any heading, except that of the good. or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 3907	- Copolymer, made from polycarbonate and acrylonitrile-butadiene-styrene copolymer (ABS)	(a) LDCs Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 50% of the ex-works price of the good ⁽⁵⁾ or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. However, materials of the same heading as the good may be used, provided that their total value does not exceed 50% of the ex-works price of the good ⁽⁵⁾ or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
	- Polyester	(a) LDCs Manufacture from materials of any heading, except that of the good or Manufacture from polycarbonate of tetrabromo-(bisphenol A) or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good or Manufacture from polycarbonate of tetrabromo-(bisphenol A) or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 3920	Ionomer sheets or film	(a) LDCs Manufacture from a thermoplastic partial salt which is a copolymer of ethylene and metacrylic acid partly neutralised with metal ions, mainly zinc and sodium or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from a thermoplastic partial salt which is a copolymer of ethylene and metacrylic acid partly neutralised with metal ions, mainly zinc and sodium or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 3921	Foils of plastic, metallised	(a) LDCs Manufacture from highly-transparent polyester-foils with a thickness of less than 23 micron ⁽⁶⁾ or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from highly-transparent polyester-foils with a thickness of less than 23 micron ⁽⁶⁾ or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 40	Rubber and articles thereof; except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
4012	Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber:
	- Retreaded pneumatic, solid or cushion tyres, of rubber	Retreading of used tyres
	- Other	Manufacture from materials of any heading, except those of headings 4011 and 4012 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex Chapter 41	Raw hides and skins (other than furskins) and leather; except for:	Manufacture from materials of any heading, except that of the good
4101 to 4103	Raw hides and skins of bovine (including buffalo) or equine animals (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not dehaired or split; raw skins of sheep or lambs (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not with wool on or split, other than those excluded by a note to Chapter 41; other raw hides and skins (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not dehaired or split, other than those excluded by a note to Chapter 41	Manufacture from materials of any heading
4104 to 4106	Tanned or crust hides and skins, without wool or hair on, whether or not split, but not further prepared	Re-tanning of tanned or pre-tanned hides and skins of sub-headings 4104 11, 4104 19, 4105 10, 4106 21, 4106 31 or 4106 91, or Manufacture from materials of any heading, except that of the good
4107, 4112, 4113	Leather further prepared after tanning or crusting	Manufacture from materials of any heading, except that of the good. However, materials of sub-headings 4104 41, 4104 49, 4105 30, 4106 22, 4106 32 and 4106 92 may be used only if a re-tanning operation of the tanned or crust hides and skins in the dry state takes place
Chapter 42	Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk worm gut)	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex Chapter 43	Furskins and artificial fur; manufactures thereof; except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
4301	Raw furskins (including heads, tails, paws and other pieces or cuttings, suitable for furrier’s use), other than raw hides and skins of heading 4101, 4102 or 4103	Manufacture from materials of any heading
ex 4302	Tanned or dressed furskins, assembled:
	Plates, crosses and similar forms	Bleaching or dyeing, in addition to cutting and assembly of non-assembled tanned or dressed furskins
	Other	Manufacture from non-assembled, tanned or dressed furskins
4303	Articles of apparel, clothing accessories and other articles of furskin	Manufacture from non-assembled tanned or dressed furskins of heading 4302
ex Chapter 44	Wood and articles of wood; wood charcoal; except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex 4407	Wood sawn or chipped lengthwise, sliced or peeled, of a thickness exceeding 6 mm, planed, sanded or end-jointed	Planing, sanding or end-jointing
ex 4408	Sheets for veneering (including those obtained by slicing laminated wood) and for plywood, of a thickness not exceeding 6 mm, spliced, and other wood sawn lengthwise, sliced or peeled of a thickness not exceeding 6 mm, planed, sanded or end-jointed	Splicing, planing, sanding or endjointing
ex 4410 to ex 4413	Beadings and mouldings, including moulded skirting and other moulded boards	Beading or moulding
ex 4415	Packing cases, boxes, crates, drums and similar packings, of wood	Manufacture from boards not cut to size
ex 4418	- Builders’ joinery and carpentry of wood	Manufacture from materials of any heading, except that of the good. However, cellular wood panels, shingles and shakes may be used
	- Beadings and mouldings	Beading or moulding
ex 4421	Match splints; wooden pegs or pins for footwear	Manufacture from wood of any heading, except drawn wood of heading 4409
Chapter 45	Cork and articles of cork	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
Chapter 46	Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
Chapter 47	Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
Chapter 48	Paper and paperboard; articles of paper pulp, of paper or of paperboard	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
Chapter 49	Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex Chapter 50	Silk; except for:	Manufacture from materials of any heading, except that of the good
ex 5003	Silk waste (including cocoons unsuitable for reeling, yarn waste and garnetted stock), carded or combed	Carding or combing of silk waste
5004 to ex 5006	Silk yarn and yarn spun from silk waste	Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning or twisting ⁽⁷⁾
5007	Woven fabrics of silk or of silk waste:	(a) LDCs Weaving ⁽⁷⁾ or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good		(b) Other beneficiary countries Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn or twisting, in each case accompanied by weaving or Weaving accompanied by dyeing or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾
ex Chapter 51	Wool, fine or coarse animal hair; horsehair yarn and woven fabric; except for:	Manufacture from materials of any heading, except that of the good
5106 to 5110	Yarn of wool, of fine or coarse animal hair or of horsehair	Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning ⁽⁷⁾
5111 to 5113	Woven fabrics of wool, of fine or coarse animal hair or of horsehair:	(a) LDCs Weaving ⁽⁷⁾ or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good		(b) Other beneficiary countries Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾
ex Chapter 52	Cotton; except for:	Manufacture from materials of any heading, except that of the good
5204 to 5207	Yarn and thread of cotton	Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning ⁽⁷⁾
5208 to 5212	Woven fabrics of cotton:	(a) LDCs Weaving ⁽⁷⁾ or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good		(b) Other beneficiary countries Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾
ex Chapter 53	Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn; except for:	Manufacture from materials of any heading, except that of the good
5306 to 5308	Yarn of other vegetable textile fibres; paper yarn	Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning ⁽⁷⁾
5309 to 5311	Woven fabrics of other vegetable textile fibres; woven fabrics of paper yarn:	(a) LDCs Weaving ⁽⁷⁾ or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good		(b) Other beneficiary countries Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾
5401 to 5406	Yarn, monofilament and thread of man-made filaments	Extrusion of man-made fibres accompanied by spinning or spinning of natural fibres ⁽⁷⁾
5407 and 5408	Woven fabrics of man-made filament yarn:	(a) LDCs Weaving ⁽⁷⁾ or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good		(b) Other beneficiary countries Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Twisting or texturing accompanied by weaving provided that the value of the non-twisted/non-textured yarns used does not exceed 47.5% of the ex-works price of the good or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾
5501 to 5507	Man-made staple fibres	Extrusion of man-made fibres
5508 to 5511	Yarn and sewing thread of man-made staple fibres	Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning ⁽⁷⁾
5512 to 5516	Woven fabrics of man-made staple fibres:	(a) LDCs Weaving ⁽⁷⁾ or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good		(b) Other beneficiary countries Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾
Ex Chapter 56	Wadding, felt and non-wovens; special yarns; twine, cordage, ropes and cables and articles thereof; except for:	Extrusion of man-made fibres accompanied by spinning or spinning of natural fibres or Flocking accompanied by dyeing or printing ⁽⁷⁾		(b) Other beneficiary countries Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾
5602	Felt, whether or not impregnated, coated, covered or laminated:
	- Needleloom felt	Extrusion of man-made fibres accompanied by fabric formation, However: polypropylene filament of heading 5402, polypropylene fibres of heading 5503 or 5506, or polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used, provided that their total value does not exceed 40% of the ex-works price of the good or Fabric formation alone in the case of felt made from natural fibres ⁽⁷⁾
	- Other	Extrusion of man-made fibres accompanied by fabric formation, or Fabric formation alone in the case of other felt made from natural fibres ⁽⁷⁾
5603	Nonwovens, whether or not impregnated, coated, covered or laminated	(a) LDCs Any non-woven process including needle punching		(b) Other beneficiary countries Extrusion of man-made fibres, or use of natural fibres, accompanied by nonwoven techniques including needle punching
5604	Rubber thread and cord, textile covered; textile yarn, and strip and the like of heading 5404 or 5405, impregnated, coated, covered or sheathed with rubber or plastics:
	Rubber thread and cord, textile covered	Manufacture from rubber thread or cord, not textile covered
	Other	Extrusion of man-made fibres accompanied by spinning or spinning of natural fibres ⁽⁷⁾
5605	Metallised yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal	Extrusion of man-made fibres accompanied by spinning or spinning of natural or man-made staple fibres ⁽⁷⁾
5606	Gimped yarn, and strip and the like of heading 5404 or 5405, gimped (other than those of heading 5605 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn	Extrusion of man-made fibres accompanied by spinning or spinning of natural or man-made staple fibres or Spinning accompanied with flocking or Flocking accompanied by dyeing ⁽⁷⁾
Chapter 57	Carpets and other textile floor coverings:	Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Manufacture from coir yarn or sisal yarn or jute yarn or Flocking accompanied by dyeing or by printing or Tufting accompanied by dyeing or by printing Extrusion of man-made fibres accompanied by non-woven techniques including needle punching ⁽⁷⁾ However: - polypropylene filament of heading 5402, - polypropylene fibres of heading 5503 or 5506, or - polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used, provided that their total value does not exceed 40% of the ex-works price of the good Jute fabric may be used as a backing
Ex Chapter 58	Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery; except for:	(a) LDCs Weaving ⁽⁷⁾ or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good		(b) Other beneficiary countries Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or flocking or coating or Flocking accompanied by dyeing or by printing or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾
5805	Hand-woven tapestries of the types Gobelins, Flanders, Aubusson, Beauvais and the like, and needle-worked tapestries (for example, petit point, cross stitch), whether or not made up	Manufacture from materials of any heading, except that of the good
5810	Embroidery in the piece, in strips or in motifs	Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
5901	Textile fabrics coated with gum or amylaceous substances, of a kind used for the outer covers of books or the like; tracing cloth; prepared painting canvas; buckram and similar stiffened textile fabrics of a kind used for hat foundations	Weaving accompanied by dyeing or by flocking or by coating or Flocking accompanied by dyeing or by printing
5902	Tyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon:
	- Containing not more than 90% by weight of textile materials	Weaving
	- Other	Extrusion of man-made fibres accompanied by weaving
5903	Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902	Weaving accompanied by dyeing or by coating or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good
5904	Linoleum, whether or not cut to shape; floor coverings consisting of a coating or covering applied on a textile backing, whether or not cut to shape	Weaving accompanied by dyeing or by coating ⁽⁷⁾
5905	Textile wall coverings:
	- Impregnated, coated, covered or laminated with rubber, plastics or other materials	Weaving accompanied by dyeing or by coating
	- Other	Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾:
5906	Rubberised textile fabrics, other than those of heading 5902:
	- Knitted or crocheted fabrics	Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by knitting or Knitting accompanied by dyeing or by coating or Dyeing of yarn of natural fibres accompanied by knitting ⁽⁷⁾
	- Other fabrics made of synthetic filament yarn, containing more than 90% by weight of textile materials	Extrusion of man-made fibres accompanied by weaving
	- Other	Weaving accompanied by dyeing or by coating or Dyeing of yarn of natural fibres accompanied by weaving
5907	Textile fabrics otherwise impregnated, coated or covered; painted canvas being theatrical scenery, studio back-cloths or the like	Weaving accompanied by dyeing or by flocking or by coating or Flocking accompanied by dyeing or by printing or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good
5908	Textile wicks, woven, plaited or knitted, for lamps, stoves, lighters, candles or the like; incandescent gas mantles and tubular knitted gas mantle fabric therefor, whether or not impregnated:
	- Incandescent gas mantles, impregnated	Manufacture from tubular knitted gas-mantle fabric
	- Other	Manufacture from materials of any heading, except that of the good
5909 to 5911	Textile articles of a kind suitable for industrial use:
	Polishing discs or rings other than of felt of heading 5911	Weaving
	- Woven fabrics, of a kind commonly used in papermaking or other technical uses, felted or not, whether or not impregnated or coated, tubular or endless with single or multiple warp and/or weft, or flat woven with multiple warp and/or weft of heading 5911	(a) LDCs Weaving ⁽⁷⁾	(b) Other beneficiary countries Extrusion of man-made fibres or spinning of natural or of man-made staple fibres, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating Only the following yarns may be used: - coir yarn - yarn of polytetrafluoroethylene (12), - yarn, multiple, of polyamide, coated impregnated or covered with a phenolic resin, - yarn of synthetic textile fibres of aromatic polyamides, obtained by polycondensation of m-phenylenediamine and isophthalic acid, - monofil of polytetrafluoroethylene (12), - yarn of synthetic textile fibres of poly(p-phenylene terephthalamide), - glass fibre yarn, coated with phenol resin and gimped with acrylic yarn (12) - copolyester monofilaments of a polyester and a resin of terephthalic acid and 1,4-cyclohexanediethanol and isophthalic acid
	Other	Extrusion of man-made filament yarn or spinning of natural or man-made staple fibres, accompanied by weaving ⁽⁷⁾ or Weaving accompanied by dyeing or by coating
Chapter 60	Knitted or crocheted fabrics	Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by knitting or Knitting accompanied by dyeing or by flocking or by coating or Flocking accompanied by dyeing or by printing or Dyeing of yarn of natural fibres accompanied by knitting or Twisting or texturing accompanied by knitting provided that the value of the non-twisted/non-textured yarns used does not exceed 47.5% of the ex-works price of the good
Chapter 61	Articles of apparel and clothing accessories, knitted or crocheted:
	- Obtained by together or otherwise assembling, two or more pieces of knitted or crocheted fabric which have been either cut to form or obtained directly to form	(a) LDCs Manufacture from fabric		(b) Other beneficiary countries Knitting and making-up (including cutting) ⁽⁷⁾ ⁽⁹⁾
	Other	Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by knitting (knitted to shape goods) or Dyeing of yarn of natural fibres accompanied by knitting (knitted to shape goods) ⁽⁷⁾
Ex Chapter 62	Articles of apparel and clothing accessories, not knitted or crocheted; except for:	(a) LDCs Manufacture from fabric		(b) Other beneficiary countries Weaving accompanied by making-up (including cutting) or Making-up preceded by printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾ ⁽⁹⁾
ex 6202, ex 6204, ex 6206, ex 6209 and ex 6211	Women’s, girls’ and babies’ clothing and clothing accessories for babies, embroidered	(a) LDCs Chapter rule applies		(b) Other beneficiary countries Weaving accompanied by making-up (including cutting) or Manufacture from unembroidered fabric, provided that the value of the unembroidered fabric used does not exceed 40% of the ex-works price of the good ⁽⁹⁾
ex 6212	Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, knitted or crocheted
	- Obtained by sewing together or otherwise assembling, two or more pieces of knitted or crocheted fabric which have been either cut to form or obtained directly to form	(a) LDCs Manufacture from fabric		(b) Other beneficiary countries Knitting and making-up (including cutting) ⁽⁷⁾ ⁽¹⁰⁾
	- Other	Spinning of natural or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by knitting (knitted to shape goods) or Dyeing of yarn of natural fibres accompanied by knitting (knitted to shape goods) ⁽¹⁰⁾
ex 6210 and ex 6216	Fire-resistant equipment of fabric covered with foil of aluminised polyester	(a) LDCs Chapter rule applies		(b) Other beneficiary countries Weaving accompanied by making-up (including cutting) or Coating provided that the value of the uncoated fabric used does not exceed 40% of the ex-works price of the good, accompanied by making-up (including cutting) ⁽⁹⁾
6213 and 6214	Handkerchiefs, shawls, scarves, mufflers, mantillas, veils and the like:
	- Embroidered	Weaving accompanied by making-up (including cutting) or Manufacture from unembroidered fabric, provided that the value of the unembroidered fabric used does not exceed 40% of the ex-works price of the good ⁽⁹⁾ or Making-up preceded by printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾ ⁽⁹⁾
	- Other	Weaving accompanied by making-up (including cutting) or Making-up preceded by printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the good ⁽⁷⁾ ⁽⁹⁾
6217	Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 6212:
	- Embroidered	Weaving accompanied by making-up (including cutting) or Manufacture from unembroidered fabric, provided that the value of the unembroidered fabric used does not exceed 40% of the ex-works price of the good ⁽⁹⁾
	- Fire-resistant equipment of fabric covered with foil of aluminised polyester	Weaving accompanied by making-up (including cutting) or Coating provided that the value of the uncoated fabric used does not exceed 40% of the ex-works price of the good, accompanied by making-up (including cutting) ⁽⁹⁾
	- Interlinings for collars and cuffs, cut out	Manufacture from materials of any heading, except that of the good, and in which the value of all the materials used does not exceed 40% of the ex-works price of the good
	- Other	(a) LDCs Chapter rule applies		(b) Other beneficiary countries Weaving accompanied by making-up (including cutting) ⁽⁹⁾
Ex Chapter 63	Other made-up textile articles; sets; worn clothing and worn textile articles; rags; except for:	Manufacture from materials of any heading, except that of the good
6301 to 6304	Blankets, travelling rugs, bed linen etc.; curtains etc.; other furnishing articles:
	- Of felt, of nonwovens	(a) LDCs Any non-woven process including needle punching accompanied by making up (including cutting)		(b) Other beneficiary countries Extrusion of man-made fibres or use of natural fibres in each case accompanied by non-woven process including needle punching and making-up (including cutting) ⁽⁷⁾
	Other
	- Embroidered	Weaving or knitting accompanied by making-up (including cutting) or Manufacture from unembroidered fabric, provided that the value of the unembroidered fabric used does not exceed 40% of the ex-works price of the good ⁽⁹⁾ ⁽¹¹⁾
	Other	Weaving or knitting accompanied by making-up (including cutting)
6305	Sacks and bags, of a kind used for the packing of goods	(a) LDCs Weaving or knitting and making-up (including cutting) ⁽⁷⁾		(b) Other beneficiary countries Extrusion of man-made fibres or spinning of natural or man-made staple fibres accompanied by weaving or knitting and making-up (including cutting) ⁽⁷⁾
6306	Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards or landcraft; camping goods:
	- Of nonwovens	(a) LDCs Any non-woven process including needle punching accompanied by making up (including cutting)		(b) Other beneficiary countries Extrusion of man-made fibres or natural fibres in each case accompanied by any non-woven techniques including needle punching
	- Other	Weaving accompanied by making-up (including cutting) ⁽⁷⁾ ⁽⁹⁾ or Coating provided that the value of the uncoated fabric used does not exceed 40% of the ex-works price of the good, accompanied by making-up (including cutting)
6307	Other made-up articles, including dress patterns	Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the good
6308	Sets consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered table cloths or serviettes, or similar textile articles, put up in packings for retail sale	(a) LDCs Each item in the set must satisfy the rule which would apply to it if it were not included in the set. However, non-originating materials may be incorporated, provided that their total value does not exceed 25% of the ex-works price of the set		(b) Other beneficiary countries Each item in the set must satisfy the rule which would apply to it if it were not included in the set. However, non-originating materials may be incorporated, provided that their total value does not exceed 15% of the ex-works price of the set
Ex Chapter 64	Footwear, gaiters and the like; parts of such articles; except for:	Manufacture from materials of any heading, except from assemblies of uppers affixed to inner soles or to other sole components of heading 6406
6406	Parts of footwear (including uppers whether or not attached to soles other than outer soles); removable in-soles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof	Manufacture from materials of any heading, except that of the good
Chapter 65	Headgear and parts thereof	Manufacture from materials of any heading, except that of the good
Chapter 66	Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops, and parts thereof:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
Chapter 67	Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair	Manufacture from materials of any heading, except that of the good
ex Chapter 68	Articles of stone, plaster, cement, asbestos, mica or similar materials, except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex 6803	Articles of slate or of agglomerated slate	Manufacture from worked slate
ex 6812	Articles of asbestos; articles of mixtures with a basis of asbestos or of mixtures with a basis of asbestos and magnesium carbonate	Manufacture from materials of any heading
ex 6814	Articles of mica, including agglomerated or reconstituted mica, on a support of paper, paperboard or other materials	Manufacture from worked mica (including agglomerated or reconstituted mica)
Chapter 69	Ceramic products	(a) LDCs Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 70	Glass and glassware, except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
7006	Glass of heading 7003, 7004 or 7005, bent, edge-worked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials:
	Glass-plate substrates, coated with a dielectric thin film, and of a semiconductor grade in accordance with SEMII (Semiconductor Equipment and Materials Institute Incorporated) -standards ⁽⁸⁾	Manufacture from non-coated glass-plate substrate of heading 7006
	Other	Manufacture from materials of heading 7001
7010	Carboys, bottles, flasks, jars, pots, phials, ampoules and other containers, of glass, of a kind used for the conveyance or packing of goods; preserving jars of glass; stoppers, lids and other closures, of glass	Manufacture from materials of any heading, except that of the good or Cutting of glassware, provided that the total value of the uncut glassware used does not exceed 50% of the ex-works price of the good
7013	Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 7010 or 7018)	Manufacture from materials of any heading, except that of the good or Cutting of glassware, provided that the total value of the uncut glassware used does not exceed 50% of the ex-works price of the good or Hand-decoration (except silk-screen printing) of hand-blown glassware, provided that the total value of the hand-blown glassware used does not exceed 50% of the ex-works price of the good
ex 7019	Articles (other than yarn) of glass fibres	Manufacture from: uncoloured slivers, rovings, yarn or chopped strands, or glass wool
ex Chapter 71	Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin, except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
7106, 7108 and 7110	Precious metals:
	Unwrought	Manufacture from materials of any heading, except those of headings 7106, 7108 and 7110 or Electrolytic, thermal or chemical separation of precious metals of heading 7106, 7108 or 7110 or Fusion or alloying of precious metals of heading 7106, 7108 or 7110 with each other or with base metals
	Semi-manufactured or in powder form	Manufacture from unwrought precious metals
ex 7107, ex 7109 and ex 7111	Metals clad with precious metals, semi-manufactured	Manufacture from metals clad with precious metals, unwrought
7115	Other articles of precious metal or of metal clad with precious metal	Manufacture from materials of any heading, except that of the good
7117	Imitation jewellery	Manufacture from materials of any heading, except that of the good or Manufacture from base metal parts, not plated or covered with precious metals, provided that the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 72	Iron and steel; except for:	Manufacture from materials of any heading, except that of the good
7207	Semi-finished products of iron or non-alloy steel	Manufacture from materials of heading 7201, 7202, 7203, 7204, 7205 or 7206
7208 to 7216	Flat-rolled products, bars and rods, angles, shapes and sections of iron or non-alloy steel	Manufacture from ingots or other primary forms or semi-finished materials of heading 7206 or 7207
7217	Wire of iron or non-alloy steel	Manufacture from semi-finished materials of heading 7207
7218 91 and 7218 99	Semi-finished products	Manufacture from materials of heading 7201, 7202, 7203, 7204, 7205 or sub-heading 7218 10
7219 to 7222	Flat-rolled products, bars and rods, angles, shapes and sections of stainless steel	Manufacture from ingots or other primary forms or semi-finished materials of heading 7218
7223	Wire of stainless steel	Manufacture from semi-finished materials of heading 7218
7224 90	Semi-finished products	Manufacture from materials of heading 7201, 7202, 7203, 7204, 7205 or sub-heading 7224 10
7225 to 7228	Flat-rolled products, hot-rolled bars and rods, in irregularly wound coils; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel	Manufacture from ingots or other primary forms or semi-finished materials of heading 7206, 7207, 7218 or 7224
7229	Wire of other alloy steel	Manufacture from semi-finished materials of heading 7224
ex Chapter 73	Articles of iron or steel; except for:	Manufacture from materials of any heading, except that of the good
ex 7301	Sheet piling	Manufacture from materials of heading 7207
7302	Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish-plates, chairs, chair wedges, sole pates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails	Manufacture from materials of heading 7206
7304, 7305 and 7306	Tubes, pipes and hollow profiles, of iron (other than cast iron) or steel	Manufacture from materials of heading 7206, 7207, 7208, 7209, 7210, 7211, 7212, 7218, 7219, 7220 or 7224
ex 7307	Tube or pipe fittings of stainless steel	Turning, drilling, reaming, threading, deburring and sandblasting of forged blanks, provided that the total value of the forged blanks used does not exceed 35% of the ex-works price of the good
7308	Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel	Manufacture from materials of any heading, except that of the good. However, welded angles, shapes and sections of heading 7301 may not be used
ex 7315	Skid chain	Manufacture in which the value of all the materials of heading 7315 used does not exceed 50% of the ex-works price of the good
ex Chapter 74	Copper and articles thereof; except for:	Manufacture from materials of any heading, except that of the good
7403	Refined copper and copper alloys, unwrought	Manufacture from materials of any heading
Chapter 75	Nickel and articles thereof	Manufacture from materials of any heading, except that of the good
ex Chapter 76	Aluminium and articles thereof; except for:	Manufacture from materials of any heading, except that of the good
7601	Unwrought aluminium	Manufacture from materials of any heading
7607	Aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm	Manufacture from materials of any heading, except that of the good and heading 7606
Chapter 77	Reserved for possible future use in the Harmonised System
ex Chapter 78	Lead and articles thereof, except for:	Manufacture from materials of any heading, except that of the good
7801	Unwrought lead:
	Refined lead	Manufacture from materials of any heading
	Other	Manufacture from materials of any heading, except that of the good. However, waste and scrap of heading 7802 may not be used
Chapter 79	Zinc and articles thereof	Manufacture from materials of any heading, except that of the good
Chapter 80	Tin and articles thereof	Manufacture from materials of any heading, except that of the good
Chapter 81	Other base metals; cermets; articles thereof	Manufacture from materials of any heading
ex Chapter 82	Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal; except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
8206	Tools of two or more of the headings 8202 to 8205, put up in sets for retail sale	Manufacture from materials of any heading, except those of headings 8202 to 8205. However, tools of headings 8202 to 8205 may be incorporated into the set, provided that their total value does not exceed 15% of the ex-works price of the set
8211	Knives with cutting blades, serrated or not (including pruning knives), other than knives of heading 8208, and blades therefor	Manufacture from materials of any heading, except that of the good. However, knife blades and handles of base metal may be used
8214	Other articles of cutlery (for example; hair clippers, butchers’ or kitchen cleavers, choppers and mincing knives, paper knives); manicure or pedicure sets and instruments (including nail files)	Manufacture from materials of any heading, except that of the good. However, handles of base metal may be used
8215	Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware	Manufacture from materials of any heading, except that of the good. However, handles of base metal may be used
ex Chapter 83	Miscellaneous articles of base metal; except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex 8302	Other mountings, fittings and similar articles suitable for buildings, and automatic door closers	Manufacture from materials of any heading, except that of the good. However, other materials of heading 8302 may be used, provided that their total value does not exceed 20% of the ex-works price of the good
ex 8306	Statuettes and other ornaments, of base metal	Manufacture from materials of any heading, except that of the good. However, other materials of heading 8306 may be used, provided that their total value does not exceed 30% of the ex-works price of the good
ex Chapter 84	Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof; except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
8401	Nuclear reactors; fuel elements (cartridges), non-irradiated, for nuclear reactors; machinery and apparatus for isotopic separation	Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
8407	Spark-ignition reciprocating or rotary internal combustion piston engines	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8408	Compression-ignition internal combustion piston engines (diesel or semi-diesel engines	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8427	Fork-lift trucks; other works trucks fitted with lifting or handling equipment	Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
8482	Ball or roller bearings	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 85	Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles; except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
8501, 8502	Electric motors and generators; Electric generating sets and rotary converters	(a) LDCs Manufacture from materials of any heading, except that of the good and of heading 8503 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good and of heading 8503 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8513	Portable electric lamps designed to function by their own source of energy (for example, dry batteries, accumulators, magnetos), other than lighting equipment of heading 8512	(a) LDCs Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good. or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8519	Sound recording and sound reproducing apparatus	(a) LDCs Manufacture from materials of any heading, except that of the good and of heading 8522 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good and of heading 8522 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8521	Video recording or reproducing apparatus, whether or not incorporating a video tuner	(a) LDCs Manufacture from materials of any heading, except that of the good and of heading 8522 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good and of heading 8522 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8523	Discs, tapes, solid-state non-volatile storage devices, ‘smart cards’ and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8525	Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and other video camera recorders	(a) LDCs Manufacture from materials of any heading, except that of the good and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8526	Radar apparatus, radio navigational aid apparatus and radio remote control apparatus	(a) LDCs Manufacture from materials of any heading, except that of the good and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8527	Reception apparatus for radio-broadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock	(a) LDCs Manufacture from materials of any heading, except that of the good and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8528	Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus	(a) LDCs Manufacture from materials of any heading, except that of the good and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8535 to 8537	Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits; connectors for optical fibres, optical fibre bundles or cables; boards, panels, consoles, desks, cabinets and other bases, for electric control or the distribution of electricity	(a) LDCs Manufacture from materials of any heading, except that of the good and of heading 8538 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good and of heading 8538 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8540 11 and 8540 12	Cathode ray television picture tubes, including video monitor cathode ray tubes	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex 8542 31, ex 8542 32, ex 8542 33, ex 8542 39	Monolithic integrated circuits	Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good or The operation of diffusion, in which integrated circuits are formed on a semi-conductor substrate by the selective introduction of an appropriate dopant, whether or not assembled or tested in a non-party
8544	Insulated (including enamelled or anodised) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8545	Carbon electrodes, carbon brushes, lamp carbons, battery carbons and other articles of graphite or other carbon, with or without metal, of a kind used for electrical purposes	Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
8546	Electrical insulators of any material	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8547	Insulating fittings for electrical machines, appliances or equipment, being fittings wholly of insulating materials apart from any minor components of metal (for example, threaded sockets) incorporated during moulding solely for purposes of assembly, other than insulators of heading 8546; electrical conduit tubing and joints therefor, of base metal lined with insulating material	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8548	Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators; electrical parts of machinery or apparatus, not specified or included elsewhere in this Chapter	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
Chapter 86	Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex Chapter 87	Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof; except for:	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
8711	Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars	(a) LDCs Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
ex Chapter 88	Aircraft, spacecraft, and parts thereof, except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex 8804	Rotochutes	Manufacture from materials of any heading, including other materials of heading 8804 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
Chapter 89	Ships, boats and floating structures	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex Chapter 90	Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof, except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
9002	Lenses, prisms, mirrors and other optical elements, of any material, mounted, being parts of or fittings for instruments or apparatus, other than such elements of glass not optically worked	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
9033	Parts and accessories (not specified or included elsewhere in this Chapter) for machines, appliances, instruments or apparatus of Chapter 90	(a) LDCs Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good		(b) Other beneficiary countries Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
Chapter 91	Clocks and watches and parts thereof	Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
Chapter 92	Musical instruments; parts and accessories of such articles	Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
Chapter 93	Arms and ammunition; parts and accessories thereof	Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the good
Chapter 94	Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex Chapter 95	Toys, games and sports requisites; parts and accessories thereof, except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
ex 9506	Golf clubs and parts thereof	Manufacture from materials of any heading, except that of the good. However, roughly-shaped blocks for making golf-club heads may be used
ex Chapter 96	Miscellaneous manufactured articles, except for:	Manufacture from materials of any heading, except that of the good or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
9601 and 9602	Worked ivory, bone, tortoiseshell, horn, antlers, coral, mother-of-pearl and other animal carving material, and articles of these materials (including articles obtained by moulding. Worked vegetable or mineral carving material and articles of these materials; moulded or carved articles of wax, of stearin, of natural gums or natural resins or of modelling pastes, and other moulded or carved articles, not elsewhere specified or included; worked, unhardened gelatine (except gelatine of heading 3503) and articles of unhardened gelatin	Manufacture from materials of any heading
9603	Brooms, brushes (including brushes constituting parts of machines, appliances or vehicles), hand-operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers, squeegees (other than roller squeegees)	Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the good
9605	Travel sets for personal toilet, sewing or shoe or clothes cleaning	Each item in the set must satisfy the rule which would apply to it if it were not included in the set. However, non-originating materials may be incorporated, provided that their total value does not exceed 15% of the ex-works price of the set
9606	Buttons, press-fasteners, snap-fasteners and press-studs, button moulds and other parts of these articles; button blanks	Manufacture: from materials of any heading, except that of the good, and in which the value of all the materials used does not exceed 70% of the ex-works price of the good
9608	Ball-point pens; felt-tipped and other porous-tipped pens and markers; fountain pens, stylograph pens and other pens; duplicating stylos; propelling or sliding pencils; pen-holders, pencil holders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609	Manufacture from materials of any heading, except that of the good. However, nibs or nib-points of the same heading as the good may be used
9612	Typewriter or similar ribbons, inked or otherwise prepared for giving impressions, whether or not on spools or in cartridges; ink-pads, whether or not inked, with or without boxes	Manufacture: from materials of any heading, except that of the good, and in which the value of all the materials used does not exceed 70% of the ex-works price of the good
9613 20	Pocket lighters, gas fuelled, refillable	Manufacture in which the total value of the materials of heading 9613 used does not exceed 30% of the ex-works price of the good
9614	Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof	Manufacture from materials of any heading
Chapter 97	Works of art, collectors’ pieces and antiques	Manufacture from materials of any heading, except that of the good

Regulation 16(3)

SCHEDULE 2 Materials which are to be excluded from intra-regional cumulation if the conditions set out in regulation 16(3) are met

Heading	Description of materials	Group 1: Cambodia, Indonesia, Laos, Myanmar, Philippines, Vietnam	Group 2: Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka
0207	Meat and edible meat offal, of the poultry of heading 0105, fresh, chilled or frozen	X
ex 0210	Meat and edible meat offal of poultry, salted, in brine, dried or smoked	X
ex 0407	Eggs in shell of poultry, other than for hatching		X
ex 0408	Eggs, not in shell, and egg yolks, other than unfit for human consumption		X
0709 51 ex 0710 80 0710 40 00 0711 51 0712 31	Mushrooms, fresh or chilled, frozen, provisionally preserved, dried Sweetcorn (uncooked or cooked by steaming or boiling in water) frozen	X	X
1006	Rice	X	X
ex 1102 90 ex 1103 19 ex 1103 20 ex 1104 19 ex 1108 19	Flours, groats, meal, pellets, rolled or flaked grains, starch of rice	X	X
1701 and 1702	Cane or beet sugar and chemically pure sucrose, and other sugars, sugar syrups, artificial honey and caramel	X	X
1704 90	Sugar confectionery, not containing cocoa, other than chewing gum	X	X
ex 1806 10	Cocoa powder, containing 65 % or more by weight of sucrose/isoglucose	X	X
1806 20	Other preparations in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg	X	X
1901 90 91 1901 90 99	Other food preparations than preparations for infant use, put up for retail sale, than mixes and doughs for the preparation of bakers’ wares of heading 1905 and than malt extract	X	X
2001 90 30	Sweetcorn (Zea maysvar. saccharata), prepared or preserved by vinegar or acetic acid	X	X
2003 10	Mushrooms of the genus Agaricus, prepared or preserved otherwise than by vinegar or acetic acid	X	X
2005 80 00	Sweetcorn (Zea maysvar. saccharata), prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006	X	X
ex 2101 12	Preparations with a basis of coffee	X	X
ex 2101 20	Preparations with a basis of tea or mate	X	X
2106 90 92 2106 90 98	Food preparations not elsewhere specified, other than protein concentrates and textured protein substances, compound alcoholic preparations (except those based on odoriferous substances) of a kind used for the manufacture of beverages, and flavoured or coloured sugar syrups	X	X
2207 10 00	Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol or higher		X
ex 2208 90	Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol, other than arrack, plum, pear or cherry spirit and other spirits and spirituous beverages		X
2905 43 00	Mannitol	X	X
2905 44	D-glucitol (sorbitol)	X	X
3302 10 29	Preparations of a kind used in the drink industries containing all flavouring agents characterising a beverage, other than of an actual alcoholic strength by volume exceeding 0.5 %, containing, by weight, more than 1,5 % milkfat, 5 % sucrose or isoglucose, 5 % glucose or starch	X	X
3505 10	Dextrins and other modified starches	X	X

Regulation 2

SCHEDULE 3 Regional groups

(1)	(2)
Cambodia	Bangladesh
Indonesia	Bhutan
Laos	India
Myanmar	Nepal
Philippines	Pakistan
Vietnam	Sri Lanka

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made as a consequence of the withdrawal of the United Kingdom from the European Union. Regulation 3 sets out the conditions under which chargeable goods are to be regarded as originating from a country or territory under section 17, and for the purposes of Part 1, of the Taxation (Cross-border Trade) Act 2018 (c. 22)(“the Act”). This includes the condition that the goods are to be regarded as originating from a “beneficiary country” namely an eligible developing country to which one or more of the Generalised Scheme of Preferences (trade preference scheme) frameworks specified in Part 3 of the Trade Preference Scheme (EU Exit) Regulations 2020 ( S.I. 2020/1438) apply.

Regulation 3 sets out the conditions that must be met for goods listed in Column 2 of the table in Part 2 of Schedule 1 to be regarded as originating from a beneficiary country. The conditions are that the goods are wholly obtained in that beneficiary country or, where the goods are obtained in two or more countries or territories, that is the last country or territory in which processing of the goods constitutes an important stage of manufacture (for which regulation 7 makes further provision); and that the requirements in regulations 4, 20(1) and, in the case of returned goods, 19 are met (see further below). Regulation 4 provides for the evidence required for goods to be regarded as originating from a beneficiary country. Regulation 5 provides for the notices which HMRC Commissioners may give relating to the provision and verification of evidence of the origin of goods and the arrangements and obligations applicable to an exporter.

Regulation 6 specifies cases in which goods are to be regarded as wholly obtained in a country or territory. Regulation 7 sets out the circumstances in which the processing of goods constitutes an important stage of manufacture by reference to the conditions that must be met as set out in Schedule 1, and the circumstances in which it does not. Regulation 8 provides for the method by which the average ex-works price charged for goods sold, and the average value of non-originating materials used, may be calculated where the conditions specified in the table in Part 2 of Schedule 1 refer to a maximum content of such materials. Regulation 9 provides for a derogation relating to the use of certain materials up to defined weight, price and percentage maxima, in determining under the table in Part 2 of Schedule 1 whether the processing constitutes an important stage of manufacture.

Regulation 10 provides for the circumstances in which identical goods in a consignment must be taken into account individually and packaging must be included in determining the origin of the goods. Regulation 11 provides for the circumstances in which accessories, spare parts and tools dispatched with the goods to which they relate are to be regarded as having the same origin as those goods. Regulation 12 provides for the circumstances in which goods in a set are to be regarded as originating from a beneficiary country. Regulation 13 sets out elements used to process, or in the processing of, goods which are to be disregarded in determining their origin. Regulation 14 provides for the grounds on which the Secretary of State may grant a temporary derogation to a country in respect of specified goods and makes further provision relating to the derogation.

Regulations 15 to 18 make provision relating to different types of cumulation which is the system whereby goods originating from a specified country, or from the British Islands, a British overseas territory (except Gibraltar and the Sovereign Base Areas of Akrotiri and Dhekelia), the European Union, Norway or Switzerland in the case of cumulation under regulation 15, are to be regarded as originating from a beneficiary country when incorporated into goods manufactured in that beneficiary country. Regulations 16 and 17 provide for the two types of cumulation, intra-regional and inter-regional, between beneficiary countries in, respectively, the same regional group and different regional groups. Schedule 3 sets out regional groups for this purpose.

Regulation 19 sets out further requirements relating to goods returned to the exporting country or territory and regulation 20 sets out non-manipulation requirements that must be met to satisfy the conditions under regulation 3 for chargeable goods to be regarded as originating from a beneficiary country. Regulation 21 makes provision for the authorisation of the management of exporters’ stocks of fungible materials (as defined in that regulation) using the accounting segregation method.

This instrument is one of a group of instruments covered by an overarching Tax Information and Impact Note. The TIIN primarily focusses on the Customs Tariff (Establishment) (EU Exit) Regulations 2020 and will be available in due course at:https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

The Explanatory Memorandum is being published alongside that Tax Information and Impact Note on the same website. There is no significant impact on business, charities or voluntary bodies as this instrument broadly replicates existing European Union legislation.

( 1)

2018 c. 22. See section 51(4) for the definition of “the appropriate minister” for the purposes of section 51(1).

( 2)

S.I. 2020/1430

( 3)

S.I. 2020/1438.

( 4)

For the meaning of “GSP country”, see regulation 2(1) of the TPS Regulations.

( 5)

Cmnd 7662.

( 6)

Cmnd 2575.

( 7)

See Notes to Chapter 27 of the Goods Classification Table.

( 8)

See Notes to Chapter 27 of the Goods Classification Table.

( 9)

A copy can be obtained from the American Society for Testing and Materials (ASTM), 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA, 19428-2959, U.S.A. (email:service@astm.organd websitehttps://www.astm.org/CONTACT/index.html). A hard copy is available for inspection free of charge at the offices of HMRC at 100 Parliament Street, London SW1A 2BQ.

( 10)

See previous footnote for details of where to obtain or inspect a copy.

( 11)