Page 16 - Regional Comprehensive Economic Partnership (RCEP)

Article 2.6 Tariff Differentials

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1. All originating goods subject to tariff differentials shall be eligible
for preferential tariff treatment applicable to the originating goods
of an exporting Party pursuant to the importing Party’s tariff
commitments set out in its Schedule in Annex I (Schedules of
Tariff Commitments) at the time of importation, provided that the
exporting Party is the RCEP country of origin.

2. The RCEP country of origin for an originating good shall be the
Party where the good acquired its originating status in accordance
with Article 3.2 (Originating Goods). With regard to subparagraph
(b) of Article 3.2 (Originating Goods), the RCEP country of origin
for an originating good shall be the exporting Party, provided that
the production process, other than the minimal operations set out
in paragraph 5, for that originating good occurred in that exporting
Party.

3. Notwithstanding paragraph 2, for an originating good identified by
an importing Party in its Appendix to its Schedule in Annex I
(Schedules of Tariff Commitments), the RCEP country of origin
shall be the exporting Party, provided that the good meets the
additional requirement specified in that Appendix.

4. In the event that the exporting Party of an originating good is not
established to be the RCEP country of origin in accordance with
paragraphs 2 and 3, the RCEP country of origin for that originating
good shall be the Party that contributed the highest value of
originating materials used in the production of that good in the
exporting Party. In that case, that originating good shall be
eligible for preferential tariff treatment applicable to that
originating good of the RCEP country of origin.

5. For the purposes of paragraph 2, a “minimal operation” is any
operation set out below:

(a) preserving operations to ensure that the good remains in
good condition for the purposes of transport or storage;

(b) packaging or presenting goods for transportation or sale;

3 The Parties understand that “tariff differentials” refers to different tariff treatment that
an importing Party applies for the same originating good.

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