How RCEP Cumulation Works: Key Conditions Seen in Thai Bikes, Japanese Slurry & China Foil

This article provides a detailed explanation of practical cases utilizing the "cumulation" rule of origin under the RCEP Agreement and the decisive conditions for its application. Specifically, drawing on public cases such as Thai motorcycles and Japanese CMP slurry, it outlines the relationship between the Change in Tariff Classification (CTC) and Regional Value Content (RVC) criteria, as well as key considerations when materials and final products share the same HS code. It also highlights a crucial definition and caveat: the current cumulation rule is a mechanism for carrying over the originating status of "materials," rather than aggregating production processes within the region. Furthermore, it addresses challenges regarding issuance track records and utilization rates in China, alongside practical corporate procedures for preparing necessary documentary evidence and verifying supply chains. Finally, it emphasizes the importance of checking the latest agreement texts and importing country regulations, and consulting experts for actual operations.