De Minimis Rule Free Trade Agreement

“De Minimis”, a Latin expression meaning “minimal things”, comes from the phrase “de minimis non-curat praetor”, which means: “The prator (government official) does not deal with small things” or “de minimis non curat lex”, which means that “the law does not deal with small things”. The regional value rule calculates the percentage of raw materials and the cost of local value added. As a rule, the basis of calculation is the FOB price of the finite material. If the legal text of the free trade agreement allows it, the product may automatically be eligible for local value if the sum of the value of all non-originating materials is below a fixed threshold. In practice, it is not often allowed to be used de minimis with the regional rule of the content of value of origin, and even if it is allowed, it is not often used. The de minimis/tolerance rule varies between the different free trade agreements. For example, the ATIGA de minimis rule allows a FOB tolerance of 10% for non-originating materials that do not meet the CTC requirement for all products. * For certain products such as agricultural products, machinery or minerals, the de minimis rule is not applied. ** For some agricultural products, the percentage is 7%. For some agricultural products, this percentage is 10%. The requirement that all non-originating materials comply with a Tariff Change Rule (TCR) is a simple principle. Assessment: Glass powder is the only non-originating material that does not meet the CTC requirement of the AJCEP.

The glass powder used is 5% of the FOB value (less than 10% of the FOB). As such, solar paste originates from AJCEP when the de minimis rule is applied. Most free trade agreements use similar rules of origin to qualify products for import tariff exemptions. These rules are: are you looking for information on any of the EU`s trade agreements, including rules of origin and how to prove the origin of your product? Something is subject to a change in the tariff classification rule. It complies with the rule, but 5% of non-originating materials have not undergone a change in tariff classification. The tolerance rule under the agreement is set at 10%. Tolerance can be applied and the 5% is allowed to determine the origin. Agricultural products. The de minimis rule laid down in Article 405 shall not apply to agricultural products provided for in Chapters 1 to 27 of the Harmonised System, unless the non-originating materials are classified in subheadings different from the subheadings in which the finished products are to be classified.

Note: The “specific percentages” and “products that apply to de minimis/tolerance” differ according to the EPO. . . .

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