Common use of Intermediate Material Clause in Contracts

Intermediate Material. Where an intermediate material is used in the production of a good shall not be taken into account the non-originating materials contained in that intermediate material for the purpose of determining the origin of the goods. 1. The goods or materials originating in the territory of a Party incorporated into a good in the territory of the other party shall be considered as originating in the territory of that other party. 2. A good originating shall be considered when it is produced in the territory of one or both parties by one or more producers, provided that the good complies with the requirements established in article 3.1 and all other applicable requirements of this chapter. 3. The materials of El Salvador, Guatemala, Honduras and Panama, incorporated into a good produced In the territory of the exporting Party shall be considered originating in that Party, provided that there is a trade agreement in force between Peru and these countries, and in compliance with the specific rules of origin set out in this Treaty. 4. In the case of goods classified in Chapters 50 to 63 of the Harmonized System, paragraph 3 shall apply only when the customs tariff is applied zero percent (0%), both for the materials accruing to the final goods, in accordance with the tariff elimination program established in this Treaty, as well as in the tariff elimination program established in trade agreements of the countries mentioned in paragraph 3 to the importing Party of the final good for which the exporting Party to accumulate origin. 5. Materials which are excluded from the tariff elimination program granted by the importing Party to the countries involved in the cumulation, shall not be subject to the arrangements set out in paragraph 3. 6. When each party has established a preferential trade agreement with a country or group of countries not party, the goods or materials of a country or group of countries, not incorporated in the territory of a Party, shall be treated as originating from the territory of that Party, provided that they comply with the rules of origin applicable to such goods or materials under this Treaty. 7. For the implementation of paragraph 6, each Party shall have agreed provisions equivalent to those specified in this paragraph with the country or group of countries not party as well as the conditions as the parties deem necessary for purposes of its implementation. 1. A good originating shall be considered if the value of all the non-originating materials used in its production that did not meet the change in tariff classification pursuant to annex 3 (specific rules of origin), does not exceed 10 per cent of the FOB value of the goods. 2. Where the goods referred to in paragraph 1, subject to a requirement of a change in tariff classification and regional value content, the value of all the non-originating materials shall be included in the calculation of the regional value content of the good. 3. Notwithstanding paragraph 1, of a textile and apparel goods classified in Chapters 50 to 63 of the harmonized system that is not because certain originating fibres or yarns used in the production of the component of the good that determines the tariff classification do not undergo a change in tariff classification set out in annex 3 (specific rules of origin), shall be treated as originating goods if the total weight of all such fibres or yarns in component that is not more than ten percent (10%) of the total weight of that component. 4. In all cases, the goods shall meet all other applicable requirements of this chapter. 1. In order to determine whether a product is fungible originating, any goods or materials shall be: (a) A physical separation of the goods or materials; or (b) An inventory management method recognised in the generally accepted accounting principles of the exporting Party. 2. The inventory management method selected under paragraph 1 for a particular good or fungible material shall continue to be used for those goods or materials throughout the fiscal year of the person that the method selected inventory management. 1. Spare parts, accessories or tools delivered with the good shall be treated as originating is good if the originating and shall not be taken into account in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification; Provided that: (a) Spare parts, accessories or tools are classified separately with and not invoiced, regardless of whether they are separately identified in the invoice; and (b) The quantities and value of the spare parts, accessories or tools are customary for the good. 2. If a good is subject to a regional value content requirement, the value of the spare parts, accessories or tools described in paragraph 1 shall be considered as originating or non-originating materials as the case may be in calculating the regional value content of the good. 1. If the goods are classified as a set or assortment as a result of the application of the Rule 3 of the general rules for the interpretation of the Harmonized System, the set or assortment shall be considered only if each good as originating in the set or assortment is both originating and the Set and the goods or assortment meet all other applicable requirements of this chapter. 2. Notwithstanding paragraph 1. a set of goods originating or assortment is if the value of all the non-originating goods in the set or assortment does not exceed fifteen per cent (15 per cent) of the FOB value of the Set or assortment. "packaging materials and containers for retail sale 1. When the packages and packing materials for retail sale are classified with the good, the origin shall not be taken into account in determining the origin of the goods. 2. Where goods are subject to a regional value content requirement, the value of the packaging materials and containers for retail sale shall be taken into account in determining the origin of the goods, as the case may be. "packing materials and containers for shipment Packing materials and containers for shipment shall not be taken into account in determining the origin of the goods.