Annex 2
Annex 2
Annex 2
2. Goods which are entitled to zero tariff under the “CEPA” and
directly imported by one side from the other side will have the origin
determined in accordance with the principles set out below:
3. The term “goods wholly obtained in one side" as set out in Article
2(1) of this Annex refers to:
(8) waste and scrap articles collected in that side which are
produced from consumption in that side and are fit only for
the recovery of raw materials;
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5. On the criteria for “substantial transformation” set out in Article 2
(2) of this Annex, the two sides agree on the following:
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Development expenses incurred should be related to the
exporting goods. These expenses include fees payable
for the development of designs, patents, patented
technologies, trademarks or copyrights (collectively
"these rights") carried out by the manufacturer himself,
fees payable to a natural or legal person in the area of
one side for undertaking development of these rights,
and fees payable for purchasing these rights owned by a
natural or legal person in the area of one side. The
fees payable should be clearly identifiable under
generally accepted accounting principles and the
requirements of “Agreement on Implementation of
Article VII of the General Agreement on Tariffs and Trade
1994”;
(6) “mixed criteria” refers to the use of two or more of the above
criteria in determining origin.
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component parts of the goods will also not be taken into account.
10. Goods seeking zero tariff under the “CEPA” should be directly
transported from the port of one side to the port of the other side.
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under Article 19 of the “ CEPA”.
12. This Annex will come into effect on the day of signature by the
representatives of the two sides.
(signature) (signature)