Exercise 3:
Rules of Origin Facilitator
Product A: HS- 87042111 / Motor vehicles for the transport of
goods, with compression-ignition internal combustion piston
engine "diesel or semi-diesel engine".
Exporting country: Viet Nam
Target Market: Thailand
1. INTRODUCTION

Go to findrulesoforigin.org and familiarize yourself with the home page. Begin by clicking the “Agreements”
button on the menu bar:

2. AGREEMENTS

2.1. Begin by searching for all treaties that Viet Nam is a party to as an exporter.

Hint: Go to "Agreements" and select the country of interest as an exporter.

i. What is the latest treaty that Viet Nam has in force?

FTA, UK-Vietnam and UK for GSP Countries (both treaties are in force since 01.01.2021)

ii. What is the latest treaty that is currently under negotiation?

FTA, Chile-Paraguay

iii. Which is the last Free Trade Agreement where Viet Nam has launched a negotiation as an
importer?

FTA, Viet Nam-Israel

3. IDENTIFY RULES OF ORIGIN IN TARGET MARKETS

Hint: In the home page, select the exporting country, the importing country, and the HS code product.

3.1. Identify what free trade agreement(s) are in place between Viet Nam and Thailand for your selected
product. (…../2)

- AANZFTA

- Regional group, ASEAN

3.2. What tariff would you be required to pay to export to Thailand? (…../2)

- Preferential Tariff:: 0%

- MFN: 40%

3.3. 3.3. In the PDF documentation on product-specific rules of origin, find your product’s 4 digit HS heading
(87.04). What specification does your product need to adhere to meet the rules of origin requirement?
(…../3)

The product needs to have a regional value content of not less than 40 percent

3.4. If 35% of the value of your product came from materials originating in Viet Nam, and the other 65%
came from materials originating outside Viet Nam, would your product meet this specification? (…../2)

No, because the product would violate the abovementioned requirement, the regional value content here is
35% - smaller than 40% -> Failed to meet the specification.
4. TARGET MARKET COMPARISONS

Product B: HS-100630 / Semi-milled or wholly milled rice,

whether or not polished or glazed
Exporting country: Viet Nam
Target Markets: Korea, Norway, Russia

4.1. Fill out the following table: (…../6)

MFN Is the
Number of Type of
Target Duty Preferential certificate
agreements cumulation RoO criteria
Market (Applied tariff of origin
in force allowed
) available?
WO (Wholly
obtained)
Diagonal
Korea 3 513% No YES
RVC
Bilateral
(Regional Value
Content)
WO
Cross-
27.27% 24.45% (Wholly YES
Cumulation
obtained)
Norway 1
WO
Cross-
0% N/A (Wholly YES
Cumulation
obtained)
 CC (Change in
chapter)
Diagonal
Russia 2 10% 7.5% YES
RVC
Bilateral
(Regional Value
Content)

4.2. Based on your results above, is there any market that seems like it would be easier for you to export
to? Explain. (…../5)

From my perspective, I would choose Russia as the easiest market for me to export to for these following
reasons:

- MFN Tariff is the second lowest among 3 countries

- Preferential Tariff is the lowest among 3 countries

- The RoO criteria which are CC (Change in chapter) and RVC (Regional Value Content) is easier to
meet than the wholly obtained criterion.

5. Optional Additional Exercises:

Now we suggest you use the following information to repeat the exercises. This is optional.

Question Exporting Importing Product Product description

country Country code

2.1 – 3.4 Niger Belgium 1006201100 Husked or brown rice

4.1 – 4.2 Brazil Argentina 08013200 Fresh or dried cashew nuts, shelled
Mexico
Korea
Egypt