: Rule of Origin
The CEPT only applies to goods originating within ASEAN. The general rule is that local ASEAN content must be at least 40% of the FOB value of the good. The local ASEAN content can be cumulative, that is, the value of inputs from various ASEAN members can be combined to meet the 40% requirement.
The following formula is applied = Raw material cost, Direct labour cost, Direct overhead cost, Inland transport cost, 100 % FOB value.
However, for certain products, special rules apply:
• Change in Chapter Rule for Wheat Flour;
• Change of Tariff Sub-Heading for Wood-Based Products;
• Change in Tariff Classification for Certain Aluminum and Articles thereof.