An import good not applicable to the preferential tariff rate listed in the second column on the Customs Import Tariff shall be regarded as originating in the country:
(1) in which the good was wholly produced; or
(2) in which the good has undergone the last substantial transformation, where the processing or manufacturing processes of the good involved two or more countries or regions.

Goods wholly produced in a country or region, as referred to in sub-paragraph 1 of the preceding Article, shall include:
(1) mineral products extracted from that country .
(2) vegetable products harvested in that country .
(3) live animals born and raised in that country.
(4) products obtained from live animals in one that country.
(5) products obtained by hunting or fishing in that country .
(6) products of sea-fishing and other products taken from the sea by vessels registered in that country .
(7) products taken from the seabed or beneath the seabed outside the territorial sea of that country , provided that country has the right of exploitation.
(8) articles collected in or waste and scrap derived from manufacturing or processing operations in that country , which only fit for the recovery of raw materials.
(9) products produced in that country or region exclusively from goods referred to in subparagraphs 1 to 8 above.

For the imported goods set forth in Article 5, except for the specific goods which origins are separately stipulated and promulgated by the Ministry of Economic Affairs and the Ministry of Finance according to the goods' characteristics, the substantive transformation refers to the following:
1. The first six digits of the Customs Import Tariff code of the processed or manufactured goods are different from those of the goods' raw materials.
2. Even though the processing or production of the goods does not make a change in its customs tariff code as set forth in the preceding subparagraph, the completed major process or added value rate is more than 35%.
The added value rate as referred in subparagraph 2 of the preceding paragraph shall be calculated according to the following formula:
Export price of the goods (F.O.B.) - price of direct or indirect imported materials and parts (C.I.F.)/ export price of the goods (F.O.B.) = added value rate
Where the goods set forth in Paragraph 1 of Article 7 fall in the following conditions, such goods shall not be determined as substantive transformation.
1. The preservation operation required during the transportation or storage period.
2. Classification, grading, repacking, packing, marking or re-labeling conducted for putting the goods on the market or transportation of the goods.
3. The operation of combining or mixing the goods does not result in the significant difference in the characteristics of the post-combination or post-mixture goods and the combined and mixed goods.
4. The processing operation involving simple cutting, connection, fabrication or assembly.
5. Simple drying, diluting or concentrating operation which does not change the nature of the goods.