QUESTION $9$

Study the schedule for EACCU Rules of Origin, $2015$ below and choose the letter of the most correct answer in the questions below.

EAC RULES OF ORIGIN, $2015$

Hs Description of Goods Origin Criteria

ex Chapter $87$

Vehicles other than railway or tramway rolling$-$stock, and parts and accessories thereof; except for:

Manufacturing to start from completely knocked$-$down kits

$87\mathrm{.}08$

Parts and accessories of the motor vehicles of headings $87\mathrm{.}01$ to $87\mathrm{.}05$

Manufacture in which the value of all the non$-$originating materials $($VNOM$)$ used does not exceed $70\%$ of the ex$-$works price of the product

$87\mathrm{.}11$

Motorcycles $($including mopeds$)$ and cycles fitted with an auxiliary motor, with or without side$-$cars; side$-$cars:

Manufacture in which the value of all the non$-$originating materials$($VNOM$)$ used does not exceed $70\%$ of the ex$-$works price of the product

$87\mathrm{.}12$

Bicycles and other cycles $($including delivery tricycles$),$ not motorized.

Manufacture in which the value of all the non$-$originating materials$($VNOM$)$ used does not exceed $70\%$ of the ex$-$works price of the product

$9|$Page

$1.$ The Origin criteria states that $$Manufacturing starts from completely knocked down Kits$($CKD$)$ This implies that:

$2.$ If a manufacturer of pickup vehicles in Tanzania wants to manufacture vehicles which qualify for the EAC Preferential Tariff. The origin criteria applicable:

A$.$ Change of Tariff Classification $($CTC$)$

B$.$ Value of Non$-$Originating Materials $($VNOM$)$

C$.$ Specificprocess

D$.$ Value added

$3.$ If a manufacturer of manual bicycles in Tanzania wants to manufacture bicycles which qualify for the EAC Preferential Tariff. The origin criteria applicable:

A$.$ Change of Tariff Classification $($CTC$)$

B$.$ Value of Non$-$Originating Materials $($VNOM$)$

C$.$ Specificprocess

D$.$ Value added

$4.$ If the manufacturer also wants to expand production by manufacturing "motorized tricycles," aka Bajaji which qualify for the EAC Preferential Tariff. The origin criteria applicable:

A$.$ Change of Tariff Classification $($CTC$)$ Rule

B$.$ Value of Non$-$Originating Materials $($VNOM$)$ C$.$ Specificprocess

D$.$ Value added

$5.$ If$,$ in the manufacturing process of the Bajaji, the manufacturer finds out the cost to produce one unit of Bajaji involves the non$-$originating materials $($VNOM$)$ worth $$500$ and the ex$-$ works price of the product is $$750$ to produce one unit of Bajaji. One statement below is correct about the origin of Bajaji.

A$.$ TheBajajioriginatesinTanzaniasincetheVNOMtoex$-$workspriceisapproximately $67\%.$

B$.$ The Bajaji does not originate in Tanzania as the VNOM to ex$-$works price is not approximately $67\%.$

C$.$ TheBajajidoesnotoriginateinTanzaniasincetheVNOMtoex$-$workspriceexceeds $70\%.$

D$.$ It is quite challenging to trace the origins of the Bajaji