Annex 2 Rules of Origin for the ASEAN–India Free Trade Area (AIFTA)

In determining the origin of products eligible for the preferential tariff treatment under ASEAN-India Free Trade Area pursuant to Article 4 of this Agreement, the following Rules shall be applied:

Rule 1

Definitions

For the purposes of this Annex, the term:

1. CIF means the value of the good imported, and includes the cost of freight and insurance up to the port or place of entry into the country of importation;

2. FOB means the free-on-board value as defined in paragraph 1 of Appendix A;

3. material means raw materials, ingredients, parts, components, subassembly and/or goods that are physically incorporated into another good or are subject to a process in the production of another good;

4. originating products means products that qualify as originating in accordance with the provisions of Rule 2;

5. production means methods of obtaining goods including growing, mining, harvesting, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting, manufacturing, producing, processing or assembling a good;

6. Product Specific Rules are rules that specify that the materials have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy an ad valorem criterion or a combination of any of these criteria;

7. product means products which are wholly obtained/produced or being manufactured, even if it is intended for later use in another manufacturing operation;

8. identical and interchangeable materials means materials being of the same kind possessing similar technical and physical characteristics, and which once they are incorporated into the finished product cannot be distinguished from one another for origin purposes.