b) they have been produced in the Member States wholly or partially from materials imported from outside the Member States or of undetermined origin by a process of production which effects a substantial transformation of those materials such that: (i) the c.i.f. value of those materials does not exceed 60 per cent of the total cost of the materials used in the production of the goods; or (ii the value added resulting from the process of production accounts for at least 35 per cent of the ex-factory cost of the goods; or c) there is a change in the tariff heading of a product arising from a processing carried out on the non-originating materials. 3. For the purpose of sub-paragraph (c) of paragraph 1 , the agreed list of processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status, shall upon adoption, be deemed to form an integral part of the Annex on the Rules of Origin. 4. For the purposes of sub-paragraph b (i) of paragraph 1, the c.i.f. value shall not include the freight from the last sea-port to the final destination of the goods. 5. Notwithstanding, the provisions of sub-paragraphs (b) and (c) of paragraph 1 of this Rule, the CMT may, vary the required percentages; and lay down conditions for a change in tariff heading as on origin criteria, using the provisions of the Lome IV convention as the basis. 6. Cumulative treatment a) For the purposes of implementing this Annex, the Member States shall be considered as one territory.