Halal Derivatives:

Any ingredient derived from a product whose source is originally Halal (permitted) in Islam but a by-product is derived from it by the usage of materials like alcohol or any other Haram or intoxicant materials to purify it in to a purer Halal (permitted) final product where no significant residues are detectable, could be considered as Halal. 

E.g.: Pure vinegar derived from grapes or any edible fruits or vegetables passing through a stage of alcohol but turning from it to vinegar is Halal with no significant presence of traces of alcohol in it.

Bone from the permitted Zabeeha cattle which has been slaughtered through the Halal process could be used as a source of Gelatin, Phosphorus or other by-products for the usage as an additive, ingredient or constituent, where the limit on the content shall not be considered as restricted unless Product Formulation uses its discretion for the purpose of its organoleptic and rheological quality as part of the Product Development process. When such a derivative is considered as an ingredient or a constituent of a final Halal Product, it shall be considered as Halal (permitted).  

Makrooh Derivatives:

Bone from the permitted Zabeeha cattle could be used as a source of Gelatin, Phosphorus or other by-products for the usage as an additive, where the content shall not increase more than 0.50% otherwise when such a derivative increases this limit, it shall be considered as Makrooh (restricted). Any final food product where the content of this derivative forms a part of ingredient or constituent, it shall be considered to the category of Haram rather than Makrooh.

Haram Derivatives:

Any ingredient derived from a product whose source is originally Haram (forbidden) in Islam cannot be justified in the permitted category even with the reasoning of its non-toxicant nature or non-harmful effect to human health.

E.g.: Pure Phosphorus derived from the bone of Hog is Haram

        Gelatin power or liquid derived from the Hog bone or flesh is Haram