Except as otherwise provided in this Chapter, a good shall originate in the territory of a Party provided that:
(a) the good is wholly obtained or produced in the territory of one or more of the Parties as defined in Article 415;
(b) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification described in Annex 401.1 as a result of production occurring entirely in the territory of one or more of the Parties, and the good satisfies all other applicable requirements of this Chapter;
(c) the good is produced entirely in the territory of one or more of the Parties exclusively from originating materials; or
(d) with the exception of a good provided for in Chapters 61 through 63 of the Harmonized System, the good is produced entirely in the territory of one or more of the Parties but one or more of the non-originating parts used in the production of the good does not undergo a change in tariff classification because
(i) the good was imported into the territory of a
Party in an unassembled or a disassembled form but
was classified as an assembled good pursuant to
General Rule of Interpretation 2(a) of the
Harmonized System, or
(ii) the tariff heading for the good provides for both
the good itself and its parts and is not further
subdivided into subheadings, or the tariff
subheading for the good provides for both the good
itself and its parts,
provided that the good is the good specifically described by the nomenclature of the heading or subheading and that the regional value content of the good, determined in accordance with Article 402, is not less than 60 percent where the transaction value method is used, or 50 percent where the net cost method is used, and that the good satisfies all other applicable requirements of this Chapter.
Article 402: Regional Value Content
1. Except as provided in paragraph 5, each Party shall provide that the regional value content of a good shall be calculated, at the choice of the exporter or producer of the good, on the basis of either the transaction value method described in paragraph 2 or the net cost method described in paragraph 3.