Thailand’s additional rules of origin under RCEP
In addition to the tariff reduction schedule, Annex I of Thailand’s RCEP Schedule also contains a Sub-Annex listing certain groups of goods subject to differentiated preferential tariff commitments that must comply with additional rules of origin (in addition to the general rules of origin). This means that imported goods listed in the Sub-Annex to Thailand’s Tariff Schedule must not only satisfy the rules of origin applicable to those goods (as set out in Annex 3A – Product Specific Rules of Origin under Chapter 3 on Rules of Origin), but must also comply with the relevant “additional rules of origin” provided in that Sub-Annex.
Thailand’s additional rules of origin
The “additional rules of origin” are prescribed uniformly among the countries in RCEP that maintain differentiated preferential tariff commitments, including Thailand. Specifically, these rules require that the value content of the exporting country (including the value of materials, labor, profits, etc.) account for at least 20% of the total value of the goods. Thailand’s additional rules of origin have applied from the first year (2022) onward.
Applicable preferential tariff rate
- Where the goods satisfy both conditions (i) and (ii) below:
(i) They have undergone substantial processing in the exporting country in cases where the goods are produced entirely from originating materials within the RCEP region (that is, only minimal operations—as provided in the Agreement—are carried out in other member countries, if any); and
(ii) They satisfy the additional rules of origin as provided in the Sub-Annex to Thailand’s Tariff Schedule.
In this case, the applicable preferential tariff rate is the rate that Thailand grants to the exporting RCEP country.
- Where the goods do NOT satisfy either of conditions (i) and (ii) above:
In this case, the applicable preferential tariff rate shall be the rate that Thailand grants to the RCEP member country contributing the highest value share of the originating materials used to produce those goods.
Source: Center for WTO and International Trade - VCCI
