Article 13 – Origin Criteria
For a product to be eligible for preferential concessions, it must meet one of the following:
(a) wholly obtained or produced (Article 14);
(b) not wholly obtained/produced but qualifies under Article 15, 16 or 17.
Article 14 – Wholly Obtained or Produced Products
The following are considered wholly produced/obtained in a Party:
(a) plants and plant products harvested/picked/gathered there;
(b) live animals born and raised there;
(c) products from (b);
(d) products from hunting, trapping, fishing, aquaculture, gathering, capturing there;
(e) minerals and other natural substances extracted from its soil, waters, seabed or sub seabed;
(f) products from waters/seabed outside its territorial waters, if the Party has exploitation rights under international law;
(g) marine products from high seas by vessels registered with or flying the flag of a Party;
(h) products processed on factory ships of a Party exclusively from (g);
(i) parts/raw materials recovered from used articles unfit for original purpose or repair;
(j) collected articles unfit for original purpose or repair, only for disposal or recovery of raw materials/recycling;
(k) waste/scrap from manufacturing operations there;
(l) goods produced solely from (a) (k).
Article 15 – Not Wholly Produced or Obtained Products
(a) A product is originating if not less than 40% of its content originates from a Party.
(b) Originating value content calculation:
(c) Value of non originating materials = (i) CIF value at import; or (ii) earliest ascertained price paid in the Party where working/processing occurs.
Article 16 – Cumulative Rule of Origin
Products complying with Article 13 and used as materials in a Party for a finished product shall be considered originating in that Party, provided the aggregate China Pakistan originating content of the final product is not less than 40%.
Article 17 – Product Specific Rules
Products having undergone sufficient transformation in a Party are originating. Products meeting the Product Specific Criteria (annexed) are considered sufficiently transformed.