1[3. Origin Criteria.- (1) The product shall be deemed to be originating in a Party and shall be eligible for preferential treatment provided it:
(i) is wholly obtained or produced in the territory of the Party as per rule 4; or
(ii) has undergone sufficient working or production as per the Product Specific Rules in Annexure-B.
(2) The producer or manufacturer has the option to use either of the following two methods of computing the value addition criteria in the Product Specific Rules at Annexure-B of these rules:
(a) Value Addition = [(FOB value or Ex-Works price) – (Value of NOM)] / [FOB value or Ex-Works price]
or
(b) Value Addition = [Cost of originating material + direct labour cost + direct overhead cost] / [FOB value or Ex-Works price]
Explanation: For the purposes of sub-rule (2), the differences in value addition percentages depending on the methodology i.e., FOB value or Ex Works price, are defined in Annexure-B of these rules;
(3) Notwithstanding anything contained in sub-rule (1), the final manufacture before export must have occurred in the Party of export.]
Notes:
1. Inserted by the Notification No. 39/2022-Customs (N.T.)dated 30.04.2022.