Common use of Sufficiently worked or processed products Clause in Contracts

Sufficiently worked or processed products. 1. For the purpose of Articles 3.2.1(b) and Articles 3.2.2(b), a product is considered to be originating if the non-originating materials used in its manufacture undergo working or processing beyond the operations referred to in Article 3.6; and (a) the production process results in a tariff change of the non-originating materials from a four-digit heading of the Harmonized System (HS) into another four-digit heading; or (b) the value of all non-originating materials used in its manufacture does not exceed 50% of the ex-works price; or (c) if the product falls within the classifications included in the list in Annex 3-A on Product Specific Rules of Origin (hereinafter referred to as PSR), subparagraphs (a) and (b) above shall not apply. In this case it must fulfill the specific rule detailed therein. 2. A product will be considered to have undergone a change in tariff classification pursuant to subparagraphs 1(a) and l(c) above if the value of all non- originating materials that are used in the production of the good and that do not undergo the applicable change in tariff classification does not exceed 10% of the ex- works value of the product. 3. The Joint Committee may modify Annex 3-A by mutual agreement.