What is a specific process rule?
A specific process rule says a particular step has to happen in the trade area. You see them most for textiles, where the rule can reach back to spinning the yarn, and for chemicals, where a chemical reaction can be enough on its own.
An example
Most clothing under USMCA follows what's called a yarn-forward rule. The yarn has to be spun in the region, the fabric made there and the garment cut and sewn there. A shirt sewn in Mexico from fabric woven in Asia doesn't qualify, however much work went into it.
Chemicals
Many agreements let certain processes stand in for a tariff shift in the chemical chapters, such as a chemical reaction or purification done in the area. The product can then qualify even when its code doesn't change.
Where you'll find it. The article it's in, agreement by agreement.
- USMCAProduct-specific rules, Article 4.2
- CAFTA-DRProduct-specific rules, Article 4.1
- CPTPPProduct-specific rules, Article 3.2
- RCEPProduct-specific rules, Article 3.2
- ATIGAProduct-specific rules, Article 28
- ACFTAProduct-specific rules, Article 4
- PEM ConventionProduct-specific rules, Article 4
- CETAProduct-specific rules, Article 5
- EU–Japan EPAProduct-specific rules, Article 3.2
- EU–Korea FTAProduct-specific rules, Article 5
- EU–Mercosur iTAProduct-specific rules, Article 3.2
- EU–SADC EPAProduct-specific rules, Article 8
- EU–UK TCAProduct-specific rules, Article 39
- EU–Vietnam FTAProduct-specific rules, Article 5
- UK–Canada TCAProduct-specific rules, Article 5
- UK–Japan CEPAProduct-specific rules, Article 3.2
- UK–SACUM EPAProduct-specific rules, Article 8
- UK–Vietnam FTAProduct-specific rules, Article 5
- US–Australia FTAProduct-specific rules, Article 5.1
- KORUSProduct-specific rules, Article 6.1
- US–Singapore FTAProduct-specific rules, Article 3.1
- Canada–Colombia FTAProduct-specific rules, Article 301
- Canada–Indonesia CEPAProduct-specific rules, Article 3.2
- Canada–Korea FTAProduct-specific rules, Article 3.3
- Canada–Ukraine FTAProduct-specific rules, Article 3.5
- EU GSPProduct-specific rules, Article 45
- UK DCTSProduct-specific rules, Regulation 8
- Canada GPTProduct-specific rules, Section 3(1)