FTA Provisions for Qualifying Chemical Products
Several FTAs allow qualifying certain non-fta originating chemical products using chemical-reaction rules. This means that a producer may apply certain technical test that requires that specific processing operations occur the FTA country. Sometimes known as a critical process criterion, this test mandates that certain production or sourcing processes be performed that may (positive test) or other sources or processed, if used, may not confer originating status (negative test). View side-by side FTA comparison chart which lists chemical reaction rules and where they may be located.
For example, in the U.S.-South Korea Free Trade Agreement (KORUS), certain chemicals require that manufacturing processes such as purification, chemical reaction, controlled mixing and blending, changes in particle size, or other technical tests such as these, must take place in one or both FTA parties in order to confer origin.