WO, CTC, VA, SP, and Cumulation — these five rules determine whether you pay 0% or full duty. Here's how each one works with real examples.
Every product exported under DCTS or AfCFTA must meet a specific origin rule. There are five, and understanding them is the difference between 0% duty and paying the full MFN rate.
Rule 1: Wholly Obtained (WO)
The product is entirely grown, harvested, or extracted in your country. Examples: Kenyan avocados, Ethiopian coffee beans, Ghanaian cocoa beans, Tanzanian cashews, South African grapes.
Rule 2: Change of Tariff Classification (CTC)
The finished product has a different HS code than its imported inputs. Three levels:
• Change of Chapter (CC): Raw cotton (Ch. 52) → cotton garments (Ch. 61)
• Change of Heading (CTH): Cocoa beans (1801) → cocoa butter (1804)
• Change of Subheading (CTSH): Cashew nuts raw (0801.32) → shelled (0801.31)
Rule 3: Value Added (VA)
A minimum percentage of the product's value was added locally. Formula: VA% = (Final value − non-originating materials) ÷ final value × 100. Typical thresholds: 30%, 40%, or 50%. Remember: labour, energy, rent, and processing costs all count as local value.
Rule 4: Specific Process (SP)
Certain products require a specific manufacturing step. The most important: textiles require double transformation (yarn → fabric → garment). If you only sew imported fabric, origin is NOT met unless cumulation applies.
Rule 5: Cumulation
Inputs from other DCTS/AfCFTA countries count as originating. This is Africa's secret weapon — a Kenyan factory using Tanzanian cotton, Ethiopian yarn, and Ugandan thread can still qualify.
The RoO Calculator determines which rule applies to your specific HS code and walks you through the test.