Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Rules of Origin

The final product must meet the CPTPP rules of origin in order to qualify for the preferential tariff treatment under CPTPP. The exported product must be either:

(a) wholly obtained in one or more of the CPTPP Parties (New Zealand, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Viet Nam);

or

(b) produced entirely in the territory of the TPP Parties (including New Zealand) , exclusively from materials originating in the CPTPP (including New Zealand);

or

(c) if it contains any imported materials that are not originating in the CPTPP (including New Zealand), it must meet the Product-Specific Rule of Origin (PSR) listed for the good.

Explanations

(i) Wholly Obtained or Produced Goods (WO) means goods that have been produced without any imported materials in them;

(ii) Goods produced entirely (PE) means goods that are produced entirely from materials that originate either in New Zealand or the other Parties to the CPTPP.

(iii) The Product-Specific Rule of Origin (PSR) is expressed using the following key terminology:

(a) Change of Chapter (CC) means that all non-originating materials used directly in the production of the final good must be classified in a different chapter from the final good. If materials classified in the same chapter are used, then they must have been produced in New Zealand or by the other Parties to the CPTPP:

(b) Change of Tariff Heading (CTH) means that all non-originating materials used directly in the production of the final good must be classified in a different heading from the final good. If materials classified in the same heading are used, then they must have been produced in New Zealand or by the other Parties to the CPTPP;

(c) Change of Tariff Subheading (CTSH) means that all non-originating materials used directly in the production of the final good must be classified in a different subheading from the final good. If materials classified in the same subheading are used, then they must have been produced in New Zealand or by the other Parties to the CPTPP;

(d) RVC(x) means that the good must have a Regional Value Content of not less than x% (e.g. 40%).  This is calculated according to either of four methods set out in Chapter 3 (Rules of Origin and Origin Procedures), Article 3.5 (Regional Value Content), with the particular method set out in the Product Specific Rules of Origin Schedule (PSR). [PDF, 546 KB]

  1. ‘Focused Value Method’ means that the RVC must be calculated based on the value of specified non-originating materials under Article 3.5 (Rules of Origin and Origin Procedures);

  2. ‘Build-down Method’ means that the RVC must be calculated based on the value of non-originating goods;

  3. ‘Build-up Method’ means that the RVC must be calculated based on the value of originating materials under Article 3.5 (Rules of Origin and Origin Procedures);

  4. ‘Net Cost Method’ applies to automotive goods only and means that the RVC must be calculated based on the net cost of the good under Article 3.5 (Rules of Origin and Origin Procedures);

NOTE: If a rule has exclusions, e.g. 'Change of chapter excluding Chapter XX', this means that the goods excluded (i.e. in this example those goods classified in the same chapter, as well as those in the excluded Chapter) must have been produced either in New Zealand or in the other CPTPP Parties.

NOTE: PSRs are set out in:

Tolerance provision (De Minimis)

If a good fails to meet a tariff shift requirement, but the value of the materials that do not meet the tariff shift is less than 10% of the value of the good, the good shall be regarded as originating - see Chapter 3 [PDF, 172 KB] (Rules of Origin and Origin Procedures), Article 3.11 (De Minimis).  Note, however, that a list of exceptions to this de minimis provision are set out in Annex 3-C [PDF, 172 KB].

If a textile or apparel good fails to meet a tariff shift requirement as set out in Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin) a 10% weight-based tolerance shall apply unless the component of the good which determines tariff classification contains elastomeric yarn.  In that case, the good shall be considered to be an originating good only if such yarns are wholly formed in the territory of one or more of the CPTPP Parties.

Textile and Apparel Goods

Conditions for trading Textile and Apparel Goods in the CPTPP are set out in:

(a) Chapter 4 (Textile and Apparel Goods [PDF, 133 KB])

(b) Annex 4-A to Chapter 4 (Textile and Apparel Product-Specific Rules of Origin [PDF, 87 KB])

(c) Appendix 1 to Annex 4-A to Chapter 4 (Short Supply List of Products [PDF, 317 KB])

Short Supply List of Products

Certain textile and apparel products, specified in Appendix 1 (Short Supply List of Products [PDF, 317 KB]), will be considered originating provided that the material meets both the description and any end use requirements specified in the Appendix 1 (Short Supply List of Products). Where a claim that a good is originating relies on incorporation of a material on the Short Supply List of Products, the importing Party may require the number or description of the material on the Short Supply List of Products in the importation documentation, such as a certification of origin.

Non-originating materials marked as “Temporary” in Appendix 1 (Short Supply List of Products) may be considered as originating for 5 years from entry into force of this Agreement. 

Vehicles and Vehicle Parts -Provisions for Certain Vehicles and Parts of Vehicles

For certain goods of chapters 84 and 87, an optional methodology for satisfying the regional value content requirement of the product-specific rule of origin shall apply.  This methodology is contained in Appendix 1 (Provisions Related to the Product-Specific Rules of Origin for Certain Vehicles and Parts of Vehicles [PDF, 95 KB]).