Preference determination - HS Heading procedure

[Former Member]

Hi all,

I am not able to fully understand to the HS heading procedure (00004) processing.

Could somebody explain me what does this procedure work like? ... How does it deal with components of product depending on their originating statuses?

- When I try to set up this rule it allows me to choose only operator "contained" if I chose excluded and operator "must not contain" if included.

- And the other problem (maybe) is that it doesn't allow me to set up a percentage even if is the field enabled for writing.

Is it normal?

If you could help me it would be great.

Thanks in advance.

[lakshmikanthc2]

Hi,

I am able to give very little information on preference procedures,

The following preference procedures apply within the European Union:

u2022 Checking of the tariff number or of parts thereof in the Harmonized System (HS) - HS Heading

This procedure determines how high the proportion of primary materials with a specific commodity code is allowed to be or must be.

u2022 50:50 check

This procedure determines that the value of all the primary materials without preferential origin must not exceed the value of the primary materials with preferential origin.

u2022 Additional conditions

The additional conditions let you enter text conditions for the preference agreement, for example, specific production methods.

u2022 Third-country check

This procedure determines how high the maximum percentage of non-originating primary materials is allowed to be to enable the goods to still be recognized as originating goods.

u2022 No heading change in the Harmonized System (HS)

If primary materials and produced goods belong to the same HS heading, this procedure determines howhigh the percentage of non-originating primary materials is allowed to be to enable the goods to still be recognized as originating goods.

u2022 With heading change in the Harmonized System (HS)

This procedure determines how high the percentage of non-originating good with a heading change is allowedto be to enable the goods to still be recognized as originating goods. This specifies how much the percentage of non-originating primary materials can be processed to enable it to still qualify as originating goods.

On the basis of this, the following settings can be made for the rule set EU(Preference law for the European Union):

Preference procedure description Indicator for the procedure

5050 Originating value greater than/equal to non-originating value 50:50 Check

COND Additional condition Additional condition

DRITT Third country Third-country check

HSPOS Tariff code Checking of tariff number or of parts thereof in the Harmonized System (HS)

OPOSW No heading change No heading change in HS

POSWE Heading change With heading change in HS

Regards,

Lakshmikanth