Regarding the "Origin" Identification Rules, the China Semiconductor Industry Association Issued an Urgent Notice

The China Semiconductor Industry Association issued an "Urgent Notice on the Rules for Determining the Origin of Semiconductor Products" on April 11.

According to the relevant regulations of the General Administration of Customs, the origin of "integrated circuits" is determined based on the principle of a change in the four-digit tariff code, meaning the location of the wafer fabrication is recognized as the origin. It is recommended that for "integrated circuits," whether packaged or unpackaged, the origin declared during import customs clearance should be based on the location of the "wafer fabrication plant."

Reference documents:

1. Regulations of the People's Republic of China on the Origin of Import and Export Goods

Article 3: Goods wholly obtained in one country (region) shall have that country (region) as their origin; for goods produced with the participation of two or more countries (regions), the country (region) where the last substantial transformation was completed shall be the origin.

Article 6:The criteria for determining substantial transformation as stipulated in Article 3 of these Regulations shall be based on the change in tariff classification as the primary standard; if the change in tariff classification cannot reflect substantial transformation, supplementary standards such as ad valorem percentage, manufacturing or processing operations shall be used. Specific criteria shall be formulated by the General Administration of Customs in conjunction with the Ministry of Commerce.

Paragraph 1 of this Articlerefers to the change in tariff classification, which means that after manufacturing or processing non-originating materials in a country (region),the resulting goods undergo a change in the tariff classification at a certain level in the "Import and Export Tariff of the People's Republic of China."

Paragraph 1 of this Articlerefers to the ad valorem percentage, which means the value-added portion after manufacturing or processing non-originating materials in a country (region) exceeds a certain percentage of the value of the resulting goods.

Paragraph 1 of this Articlerefers to the manufacturing or processing operations, which means the principal operations performed in a country (region) that impart the essential characteristics to the resulting goods after manufacturing or processing.

2. Provisions on the Criteria for Substantial Transformation in Non-Preferential Rules of Origin