General rules

A good will be considered originating (ASEAN or Hong Kong, China) if:

• Case 1: wholly obtained or being wholly produced in the territory of the exporting Party; or
• Case 2: Produced entirely in the territory of the exporting Party from only originating materials from ASEAN or Hong Kong, China; or
• Case 3: Not being wholly obtained or not being produced entirely in the territory of the exporting Party but satisfying the requirements for rules of origin specified in the Agreement.

For case 3, the non-originating good in the Agreement is determined based on the following criteria:

• The Regional Value Content (RVC) criterion requires that at least 40% of the final product value originate in the AHKFTA Member States.
• Criteria for change tariff classification (CTC) requires that the product must have HS different from the HS of imported materials (according to the specific rules of origin).

Specific product rules

In addition to the general principles for determining the origin of goods, AHKFTA also stipulates specific rules for products in Appendix 3.2.

Cumulation

The AHKFTA allows for cumulation, i.e. originating materials of a member country used in the production of a good in another member country are treated as originating materials of the member country where the trade takes place processing of such goods.