Jump to:
- Rules of origin background
- CPTPP rules of origin
- Product-specific rules
- Change in tariff classification
- Regional value content (RVC)
- Specific processing rules
- Tolerance/de minimis rule
- Intermediate materials rule
- Cumulation rule
- Declaring at customs
- Case studies
- Department for Business and Trade support
- Useful resources
CPTPP entry into force and ratification
As of 15 December 2024, CPTPP is in force between the UK and:
- Brunei
- Chile
- Japan
- Malaysia
- New Zealand
- Peru
- Singapore
- Vietnam
This means that the UK can access CPTPP provisions with said countries.
On 24 December 2024, CPTPP will enter into force between the UK and Australia; this means that the UK will be able to access CPTPP provisions with Australia from and including 24 December 2024.
The following countries have not yet ratified the terms of the UK’s accession:
Canada and Mexico.
This means that the UK cannot yet access CPTPP provisions with those countries.
This guidance will be updated following each of the remaining countries’ ratification of the terms of the UK’s accession to CPTPP and will include when CPTPP will enter in force between the UK and the relevant remaining country.
Rules of origin background
Rules of origin are used to determine where products ‘originate.’ Essentially, they set out the requirements for the ‘economic nationality’ of a product. Rules of origin are important because the country where a product has been produced or manufactured may not be the same as where it has been shipped from.
There are 2 distinct types of rules of origin - preferential rules, which apply to Free Trade Agreements (FTAs) and non-preferential rules, which apply to products traded outside FTAs (for example, ‘on WTO terms’).
This guidance is specific to the CPTPP trade agreement so will only cover preferential rules. We have included examples to help you understand the main concepts and requirements related to rules of origin.
Preferential rules of origin establish whether products are originating and as a result qualify for preferential tariffs which have been agreed between trading countries. If a product is deemed as non-originating, it cannot qualify for preferential tariffs and may have to pay higher duties.
Importantly, different UK FTAs have different rules of origin. So, if your product meets the rules of origin under one agreement, it will not automatically meet the rules under another. In each FTA, you may have a choice between several rules to use and apply to your product(s) and you may need to decide which FTA you want to use to export.
Example: a product made in the UK can be exported to Japan under the UK-Japan FTA or CPTPP.
In practice, when businesses have the choice of applying preferences from 2 agreements, they do not only compare the tariff rates, but will also consider the administrative processes involved, including meeting the rules of origin requirements.
As a business, you will need to understand the rules of origin of an FTA to claim the tariff preference when you’re importing under that trade agreement, and to prove the origin of products when you’re exporting. Businesses claiming preferential tariffs must have proof of origin.
You will need to ensure your products meet the origin criteria requirements, as well as comply with the necessary administrative arrangements and documentary requirements. These concepts and requirements are explained further in this guide.
Check your goods meet the rules of origin on GOV.UK.
CPTPP rules of origin
The rules of origin described in this guidance are only applicable between the UK and the CPTPP countries which have ratified the UK’s accession to CPTPP at the time of import/export. See ratified countries at the top of this guide.
All references to CPTPP in this guidance (for example, CPTPP country or member and CPTPP-sourced inputs) only refer to the ratified countries. Any reference to a non-CPTPP country in this document therefore includes CPTPP countries which have not yet ratified the UK’s accession, as well as countries outside of CPTPP.
If you have imported products from a country that is a member of CPTPP, but has not yet completed the ratification process for the UK, you should consider their exports as non-originating for the purposes of CPTPP.
You could check if the imported products may be instead originating under an existing FTA between the UK and the exporting country using the online tariff checker tool.
Product-specific rules
Your product will be considered as originating if it has been made entirely from UK or CPTPP-sourced inputs.
Example: if you make cheese from milk and other ingredients produced in the UK, it will be considered as originating.
If you intend to use inputs from outside the UK or CPTPP countries, make sure you check the product-specific rules (PSR) in the agreement to establish whether your final product is still originating and consequently benefits from preferential tariffs.
All products have their own product-specific rules based on the Harmonised System (HS) nomenclature (a standardised numerical method of classifying traded products). These rules can allow products containing inputs from other countries to count as originating, if those inputs have undergone certain changes.
For many products, CPTPP offers businesses more than one way to assess that their product is originating.
A detailed list of all the product-specific rules for CPTPP is included in Annex 3-D and Annex 4-A (for Textiles and Apparel) of the CPTPP Agreement.
The following sections describe the different types of product-specific rules that may apply to a product.
Product-specific rules can be divided in 3 categories:
- change in tariff classification
- regional value content (RVC)
- specific processing rules
Change in tariff classification
The first category of product-specific rules allows for a final product to count as originating if:
- the non-originating materials or inputs were processed in the exporting country, and
- the final product is under a different classification from the non-originating inputs (change in tariff classification or CTC)
These rules are called changes in tariff classification because a product moves from one commodity HS code to another, as a result of processing. This is sometimes referred to as a ‘tariff shift’.
Within this category, there are 3 levels of change in tariff classification, which explain the degree to which non-originating materials must have been changed for the final product to count as originating.
The 3 levels of rules are:
- change in chapter rules
- change in tariff heading rules
- change in tariff subheading rules
Change in chapter (CC)
All non-originating materials used in the production of a product must have undergone working sufficient to change the first 2 digits (or ‘chapter’) of their HS code before the product can qualify for preferential tariffs.
Example: the specific rule for 2009.50 (‘Tomato juice’) under the product-specific rules of CPTPP is CC. A UK business is selling tomato juice to New Zealand. The business imports tomatoes (classified under HS Code 0702.00) from Morocco, which would count as non-originating under the CPTPP agreement.
However, by processing these tomatoes in the UK, the final product is classified under a different chapter – 2009.50. This means the business can export the tomato juice to New Zealand as originating from the UK and qualify for preferential tariffs.
Change in tariff heading (CTH)
All non-originating materials used to produce a product must have undergone working sufficient to change any of the first 4 digits (or ‘tariff heading’) of their HS code before the product can qualify for preferential tariffs.
Example: the specific rule for HS code 1704.10 (‘Chewing gum, whether or not sugar-coated’) under the product-specific rules of CPTPP is CTH.
A UK business is selling chewing gum to Japan. The business imports refined sugar (classified under HS Code 1701.99) from the USA, which would count as non-originating under the CPTPP agreement.
However, by processing this sugar in the UK to produce chewing gum, the final product is classified under a different tariff heading – 1704.10. This means the business can export the chewing gum to Japan as originating from the UK and qualify for preferential tariffs.
Change in tariff subheading (CTSH)
All non-originating materials used in the production of that product must have undergone working sufficient to change any of the 6 digits (or ‘tariff subheading’) of their HS code before the product can qualify for preferential tariffs.
Example: one of the specific rules for HS code 8516.71 (‘Coffee or tea makers’) under the product-specific rules of CPTPP is CTSH.
A UK business is selling coffeemakers to Chile. The business imports parts (classified under HS Code 8516.90) from Turkey, which would count as non-originating under the CPTPP agreement.
However, by using the parts in manufacturing taking place in the UK, the final product is classified under a different tariff subheading – 8516.71. This means the business can export the coffeemakers to Chile as originating from the UK and qualify for preferential tariffs.
Regional value content (RVC)
Products with a (RVC) rule allow for the incorporation of materials and inputs from non-CPTPP countries (non-originating materials) up to a certain percentage of the total value of the product. This is defined as the price actually paid or payable for the product when sold for export, without international shipping.
Example: one of the options for 8414.10 (‘Vacuum pumps’) under the product-specific rules of CPTPP is RVC40. This means that at least 40% of the value of the vacuum pump needs to be added from originating materials from the UK or a CPTPP country, for that pump to qualify as originating.
The way that RVC rules are calculated can vary across different trade agreements. You should review Articles 3.5 and 3.9 of the rules of origin chapter of the CPTPP agreement to correctly calculate the value of originating content or materials in your product so it qualifies for preferential tariffs once exported under CPTPP.
Specific processing rules
Specific processing rules are not based on a CTC or RVC criterion but require non-originating inputs to undergo specific processes for the final product to qualify for the preferential tariffs.
Example: one of the options for 2707.40 (‘Naphthalene') under the product-specific rules of CPTPP is atmospheric distillation.
This means that if naphthalene has been produced through atmospheric distillation of non-originating chemicals from a non-CPTPP country, then it qualifies as originating.
In addition to the different types of product-specific rules described above, the following provisions may interact with product-specific rules and help UK businesses to demonstrate that their products are originating.
Tolerance/de minimis rule
There are certain thresholds under which a product containing non-originating inputs can still qualify for preferential tariffs without having to meet product-specific rules. These thresholds vary for different products, depending on which HS chapter they fall under.
In CPTPP, the rule for most products is defined in Article 3.11:
Rule: the value of non-originating materials does not exceed 10% of the value of the product.
For textile products under HS chapters 50 through 60, the rule is defined in Article 4.2:
Rule: the weight of non-originating materials does not exceed 10% of the total weight of the product.
For apparel and clothing accessories classified in HS chapters 61 through 63, the rule is defined in Article 4.2:
Rule: the weight of non-originating fibres or yarns does not exceed 10% of the weight of fibres or yarns used in the product.
These tolerance/de minimis rules only apply where there is a CTC rule. You cannot apply this threshold rule if you have used a specific processing rule (for example, for chemicals) or a RVC rule.
Example: if the only non-originating ingredients in the production of your biscuits (value of £20) are flavourings (value of £1, less than 10%), then your biscuits are considered as originating even if they don’t meet their product-specific rules.
For more information, you can read Article 3.11 in the rules of origin and origin procedures (page 13). Annex 3-C (page 30) contains a more detailed list of products for which threshold rules do not apply.
Intermediate materials rule
This rule describes how non-originating parts or materials should be considered when they are used to produce an ‘intermediate product’. An intermediate product is a product used to produce a final product or finished product.
Once a product qualifies as UK-originating, it is considered as fully originating even if some constituent parts are not UK-originating. When that intermediate product is used to produce a final product, it will be considered as UK-originating without the need to consider the non-originating parts that were used to produce it. When looking at the final product, there is no tracing back as to the origin of the materials used in producing the intermediate product.
Example: your UK-manufactured engine contains 30% of non-originating inputs from outside CPTPP. It still qualifies as UK-originating when you export to a CPTPP country since you met the product-specific rule for engines. That engine can now be counted as 100% UK-originating content when you export it to another CPTPP country, and it is used in the final production of a car. You do not need to recalculate the non-originating materials in the engine when determining the origin status of the car.
Cumulation rule
Cumulation is the concept that defines the extent to which a country can treat intermediate products from another country as if they were their own when determining the origin of the final product.
CPTPP allows for cumulation among all members. That means that if you intend to use originating materials from another CPTPP member to make your final product, those materials can be counted as originating for the purpose of exporting your final product to any CPTPP member.
Cumulation can only occur between the UK and CPTPP countries for which the UK accession has entered into force. The introductory paragraph of the CPTPP rules of origin section lists these countries.
Example: if you import fabric from Vietnam and incorporate it in your manufacturing process for a raincoat that you then export to Japan, this Vietnamese material can be considered as UK-originating, helping you to meet the product-specific rule.
Declaring at customs
Claiming for preferential tariffs
Once you establish that your product meets the necessary conditions to be considered as originating, the next step is to follow the administrative arrangements and documentary requirements to claim preferential tariffs for your product. These requirements differ for each FTA.
When you export your product, the importer may make a claim for preferential tariff treatment at the time of, or after, the product’s importation. When claiming preference, the importer must have a completed certification of origin. For more details, see Annex 3-B of the rules of origin and origin procedures. The importer may be required to provide this to the customs authority of the importing CPTPP member. The certification of origin is the proof of origin the importer must rely on when making a claim for preference.
Certification of origin requirements
The certification must:
- be in writing (which may include electronic format)
- specify that the product is originating and meets the rules of origin requirements
- contain a set of minimum data elements
The certification is valid for a minimum of one year after the date of completion, but CPTPP members may have set a longer validity period in their domestic legislation. In the UK, for instance, the period is 2 years.
The certification of origin must fulfil the following list of minimum data elements as set out in Annex 3-B:
- who is certifying the origin of the product (importer, exporter or producer)
- certifier’s name, address (including country), telephone number and email address
- exporter’s name, address (including country), email address and telephone number if different from the certifier
- producer’s name, address (including country), email address and telephone number
- importer’s name, address, email address and telephone number
- description and Harmonised System (HS) Tariff Classification of the product
- the rule of origin under which the product qualifies
- period of certification
- authorised signature and date
See Annex 3-B of the rules of origin and origin procedures for further detail.
An optional certification of origin template for traders to use is available at the end of this guidance. This template contains all the minimum data elements. However, because there is no prescribed format for the certification, the data elements may be presented in a variety of ways, including on or attached to the consignment invoice or a company letterhead.
The certification of origin may be completed by the exporter, producer or importer. Unlike some FTAs, there is no requirement for a UK exporter or producer to go through an issuing body, such as a chamber of commerce, to obtain the certification.
By completing the certification of origin, the exporter, producer or importer is declaring:
- that the products meet the rules of origin requirements
- that they, in addition to the completed certification of origin, have sufficient evidence to demonstrate this
The importer, exporter, or producer who completes the certification of origin should keep it alongside any other records demonstrating the product’s originating status for at least 5 years. All records may be kept in any format, including electronically, provided you can access them quickly if requested. For more detail on the requirements for proof of origin, refer to the rules of origin and origin procedures chapter.
Waiver of origin declaration
The requirement for relying on a proof of origin does not apply for low-value shipments.
For CPTPP, a proof of origin is normally not required if the customs value of the imported shipment does not exceed USD 1,000. But CPTPP members may have established a higher amount in their domestic legislation. In the UK, for instance, the amount has been set at £1,000.
Traders must still comply with all other chapter requirements including, if requested, being able to demonstrate that the product is originating.
Shipping
Your originating products will remain eligible for preferential tariffs if they are transported to any CPTPP country without passing through another non-CPTPP country.
Goods transported through non-CPTPP countries, en route to a CPTPP country including the UK, can still be considered originating provided that the product:
1. does not undergo any operation outside the CPTPP countries other than:
- unloading
- reloading
- separation from a bulk shipment
- storing
- labelling or marking required by the importing Party
- or any other operation necessary to preserve it in product condition or to transport the product to the territory of the importing Party; and
2. remains under the control of the customs administration in the territory of a non-Party.
Case studies
The following case studies show examples of different types of CPTPP product-specific rules. For each product, we explain the product-specific rules to highlight the options available for traders.
HS 0201.20 - Beef steaks
HS 0201 – HS 0210: A change to a good of heading 02.01 through 02.10 from any other chapter.
Based on this product-specific rule, we can see that the rule for this product is covered by a single rule for a range of HS codes (HS0201 to HS0210). For a steak (HS chapter 2) to be originating in a CPTPP member, the non-originating imports used to make that steak need to move from another HS chapter to HS chapter 2. Live animals are classified in chapter 1 of the HS nomenclature (a different HS chapter than steaks). Steaks will need to have been made from a cow that was imported into and slaughtered within a CPTPP country, but that cow may have been born and raised outside of CPTPP.
Example: a UK meat producer can import live cattle from the EU, slaughter and process them in the UK and the resulting steak would be originating when exported under CPTPP. However, if this UK producer imports fresh carcasses from the EU instead to make those steaks, then this steak is not considered as originating (as both carcasses and steaks are found under HS chapter 2).
HS 7117.19 - Imitation jewellery
HS 7117.19 – HS 7117.90: A change to a good of subheading HS 7117.19 through HS 7117.90 from any other heading; or
No change in tariff classification required for a good of subheading HS 7117.19 through HS 7117.90, provided there is a regional value content of not less than:
- 30 per cent under the build-up method, or
- 40 per cent under the build-down method, or
- 50 per cent under the focused value method taking into account only the non originating materials of heading HS 71.17
For imitation jewellery to count as originating in CPTPP there are 4 options for traders to meet the rules of origin:
- a change in tariff heading (HS change at 4-digit level), from outside the heading 7117 – for example, it could use non-originating base metals from other chapters or precious metals from other headings in chapter 71
Or no change in tariff classification, and a regional value content (RVC) content rule where:
- at least 30% of the value of the product is made of originating materials (build-up method), or
- maximum 40% of the value of the product is made of non-originating materials (build-down method), or
- maximum 50% of the value of the product is made of non-originating materials from heading HS 71.17 (focused value method)
More details on how to use the build-up, build-down and focused value valuation methods are available in Article 3.5 of the rules of origin chapter.
The imitation jewellery would only need to meet 1 of these 4 rules to be considered as originating. It is up to traders to decide which rule is best for them to meet.
HS 87.03 – Cars
HS 87.02 – HS 87.05: No change in tariff classification required for a good of heading HS 87.02 through HS 87.05, provided there is a regional value content of not less than:
- 45 per cent under the net cost method; or
- 55 per cent under the build-down method
There is no need to change tariff classification between non-originating materials and vehicles of heading HS 87.03 for these vehicles to count as originating in CPTPP, if they meet one of the following rules of origin:
- Maximum 45% of the net cost value of the product (excluding costs such as sales promotion, marketing, after-sales service, royalties, shipping and packing) is made of non-originating materials, or
- Maximum 55% of the value of the product is made of non-originating materials (build-down method).
More details on how to use the build-down and net cost valuation methods are available in Article 3.5 and 3.9 of the rules of origin chapter.
Vehicles would only need to meet one of these two rules to be considered as originating; it is up to traders to decide which rule is best for them to meet.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. You may also be eligible for 1-2-1 support from a local International Trade Adviser. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access free training on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures
Check import duties and allows you to check the status of available tariff rate quotas
Useful resources
You can find more information about export opportunities, business culture and any existing trade barriers on our Vietnam market guide.
Prior to export, you must be aware of local regulations and import conditions in Vietnam that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others. The export guide above provides an introduction to Vietnam’s tax system.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer or distributor, you can use the following contacts:
- DBT’s Export Support Service International Markets team
- get in touch with DBT at the local British Embassy
- get in touch with the British Chamber of Commerce in Vietnam
To see information on political, economic and security risks when trading with Vietnam, please see: