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Rules of origin: one consignment, three declared tests, and they disagree

Type the ex works price and the imported inputs. Raise one input from 30 to 50 and one of three declared tests drops out while nothing about the consignment moved. No origin is conferred here.

Live result

Value added is 70% of the ex works price, so both transformation tests are satisfied.
  • Ex works price100 currency units
  • Imported value30 currency units
Moving the imported value moves the share and, at the threshold, the signature.
Value added is 70% of the ex works price, so both transformation tests are satisfied.Moving the imported value moves the share and, at the threshold, the signature.

Try a scenario

The consignment and its declared tests

currency units

Shown in one currency. The arithmetic is identical in any single currency.

60%

Use 2 to 10 uppercase letters or digits. No tariff lookup is performed.

Wholly obtained declaration

Live chart
The three declared testsImported value is 30 of an ex works price of 100. Value added is 70% against a typed threshold of 60%. Value added is satisfied, heading change is satisfied, and wholly obtained is declared no.Value addedsatisfied70%Heading changesatisfiedWholly obtaineddeclared no0%100%

Imported inputs

Imported input 1

currency units

A zero input row may stay on the page. At zero aggregate value its heading is not tested.

Tracked answer

Transformation signature
both transformation tests are satisfied
Wholly obtained
Declared no
Imported total
30 currency units
Value added share
70%

At zero aggregate imported value, no positive value imported heading is tested. The wholly obtained result still comes only from your declaration.

Aggregate imported input value

It does not check the values in between.

How the answer sits across the values sampledA rail of the 11 values sampled, from 0.00 to 100.00 in steps of 10.00. Across the values sampled, the transformation signature stays both transformation tests are satisfied from 0.00, the lowest value sampled to 40.00. The nearest value where it changes is 50.00, where it becomes only the heading change test is satisfied.first change50.0030.00on the page

Across the values sampled, the transformation signature stays both transformation tests are satisfied from 0.00, the lowest value sampled to 40.00. The nearest value where it changes is 50.00, where it becomes only the heading change test is satisfied.

Across the values sampled, the transformation signature stays both transformation tests are satisfied from 0.00, the lowest value sampled to 40.00. The nearest value where it changes is 50.00, where it becomes only the heading change test is satisfied.
The answerboth transformation tests are satisfied
Values sampled0.00 to 100.00, 11 values, step 10.00
Holds from0.00, lowest sampled
Holds to40.00
Nearest value that changes it50.00
The answer thereonly the heading change test is satisfied

What an unchanged region does and does not prove is set out in a short lesson.

The sweep samples only the values you entered. Between samples the answer is not checked, so read the boundary as observed, not proven.

First checked change

50 currency units · only the heading change test is satisfied

Only aggregate imported value moves. Price, threshold, headings, and the wholly obtained declaration stay fixed.

It applies only the three tests and values declared by the visitor, and it neither confers origin nor chooses the governing rule or accepting authority.

Here is the maths

▾

The formula, in words

Subtract aggregate imported input value divided by ex works price from one. That gives the value added share. Compare it inclusively with the typed threshold. The heading test is satisfied only when every positive value imported input has a heading different from the finished article. Wholly obtained is read directly from your declaration.

V=1−IPV=1-\frac{I}{P}V=1−PI​
where VVV is the value added share, III the imported input value, and PPP the ex works price.
V≥tV\ge tV≥t
where ttt is the typed threshold.
H=⋀i:Ii>0(hi≠hp)H=\bigwedge_{i:I_i>0}(h_i\ne h_p)H=i:Ii​>0⋀​(hi​=hp​)
where HHH is the heading test, IiI_iIi​ an imported input value, hih_ihi​ its heading, and hph_php​ the finished article heading.

A worked example

  1. Ex works price is 100 and one imported input worth 30 has heading 2000 while the article has heading 1000.
  2. Value added is 1−30100=0.71 - \frac{30}{100} = 0.71−10030​=0.7, which is at least the typed threshold of 0.6.
  3. The headings differ, so both transformation tests are satisfied. Wholly obtained remains the typed declaration, no.
  4. At imported value 50, value added becomes 0.5 and only the heading change test remains satisfied.

What this does not model

It holds no agreement, product rule, list rule, exception, tariff interpretation, accepting authority, or origin determination. It does not infer wholly obtained from imported value.

What the sweep holds fixed

Only aggregate imported input value moves. Ex works price, threshold, article and input headings, and the wholly obtained declaration remain fixed.

Source anchors

  • WTO, Agreement on Rules of Origin
  • WTO, briefing note on rule structures
  • WTO, Rules of Origin data portal description

The sources identify distinct rule structures. This page uses only the simplified declarations typed here and reproduces no agreement text or list.

The whole record prints. Your browser can save it as a PDF instead of printing it.

No origin is conferred and no governing agreement, product rule, exception, tariff interpretation, or accepting authority is selected here.

Related

  • Commercial agency: agent, distributor, and what registration changesTwo commercial arrangements that look alike on paper are treated very differently once one of them is registered. This sets out how the United Arab Emirates and Saudi Arabia draw that line, what registration attaches to it, and where the sources disagree.
  • Landed cost: a unit price becomes a cost, line by lineA unit price becomes a landed cost, line by line. The classification line moves more than your negotiation did.

Declared origin tests record

Rules of origin: one consignment, three declared tests, and they disagree

Accepted inputs

Ex works price
100 currency units
Value added threshold
60%
Finished article heading
1000
Wholly obtained declaration
Declared no
Imported input 1
Input A, 30 currency units, 2000

Tracked answer

Transformation signature
both transformation tests are satisfied
Wholly obtained
Declared no
Imported total
30 currency units
Value added share
70%

Record fields

Calculation version
1.0.0
Boundary
It applies only the three tests and values declared by the visitor, and it neither confers origin nor chooses the governing rule or accepting authority.
Permanent refusal
No origin is conferred and no governing agreement, product rule, exception, tariff interpretation, or accepting authority is selected here.

No origin is conferred and no governing agreement, product rule, exception, tariff interpretation, or accepting authority is selected here.

Badr Alghamdi · badralghamdi.com/tools/origin-under-three-tests

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