Common use of Application and Interpretation Clause in Contracts

Application and Interpretation. For the purposes of this Chapter: (a) the basis for tariff classification is the Harmonized System; (b) if applying Article 3.3.2, the determination of whether a heading or subheading under the Harmonized System provides for both a good and the materials that are used in the production of the good is made on the basis of the nomenclature of the heading or subheading and the relevant Section or Chapter Notes, in accordance with the General Rules for the Interpretation of the Harmonized System; (c) in applying the Customs Valuation Agreement under this Chapter: (i) the principles of the Customs Valuation Agreement apply to domestic transactions, with any modifications required by the circumstances, as they would apply to international transactions; (ii) the provisions of this Chapter take precedence over the Customs Valuation Agreement to the extent of any difference; and (iii) the definitions in Article 3.20 shall take precedence over the definitions in the Customs Valuation Agreement to the extent of any difference.