The 'Framework Agreement on ASEAN-China Comprehensive Economic Cooperation' was signed by ASEAN and China on November 4, 2002 to serve as the structure and mechanism for negotiations to establish a free trade area covering trade in goods, services, and investment, as well as to effect various measures for economic cooperation between China and ASAEN. Subsequently, an 'Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Co-operation between the ASEAN and China' was successfully negotiated and was signed on November 29, 2004, during the ASEAN - China Summit meeting in Vientiane, Lao PRD.

In determining the origin of products eligible for the preferential tariff concession pursuant to the Framework Agreement on Comprehensive Economic Co-operation between ASEAN and China, the rules as specified in Annex 3 of the Framework Agreement between ASEAN and China are applied. According to the rules, products imported by a Party shall be deemed to be originating and eligible for preferential tariff if they conform to the following requirements:

(a) Origin criteria which should be any one of the following:

- Products which are wholly obtained or produced as set out and defined; or

- Products not wholly produced or obtained provided that the said products are eligible under the defined rules.

(b) Direct consignment

However, operations or processes undertaken, by themselves or in combination with each other for the purposes listed below, are considered to be minimal and shall not be taken into account in determining whether a good has been wholly obtained in one country:

(a) ensuring preservation of goods in good condition for the purposes of transport or storage;

(b) facilitating shipment or transportation; and

(c) packaging or presenting goods for sale.

In addition, such goods are required to meet all other applicable requirements in the Rules of Origin for ASEAN-China Free Trade agreement.