Direct Consignment Rule Sample Clauses

Direct Consignment Rule. In order for goods to be eligible to qualify for PICTA preferences, paragraph 3 of Annex I of PICTA states that their shipment must either have been: • direct from the exporting country to the importing country • indirect – having been shipped from the exporting country to the importing country through an intermediary country - without entering the commerce of that (intermediary) country. The phraseentering into the commerce” refers to more than merely being trans-shipped via a country irrespective of whether the intermediary country is a PICTA Party or not. 1 Paragraph 1 of Annex I defines ‘factory cost’ of the final good as the total cost of the good in its finished state following a process of manufacture, excluding any profit, marketing costs, taxes and other duties. Goods that were cleared by the Customs of an intermediary country, whether or not placed in a warehouse, a bonded warehouse, export processing zone or under any inward processing relief regime, and where they were subsequently unpacked and repacked causing changes to the unit values of the good before being re-exported, would be considered as having “entered the commerce” of that country. Paragraph 2 of Annex I of PICTA details the conditions under which goods exported indirectly are not considered as having entered the commerce of the intermediary country; (a) The entry of the goods into the intermediary country must have been required for geographical or transport requirements. For example some of the transport routes between the PICTA Parties may transit through Australia and New Zealand; and (b) All operations (if any) performed on the goods must relate solely to their unloading, reloading or preservation. For example refrigeration. In other words, for goods exported indirectly from one PICTA Party to another to qualify for originating status they must be kept under Customs surveillance in a bonded or transit warehouse for onward shipment when transhipped through the intermediary country. Such that although they have been transhipped through an intermediary country, they have been consigned directly from one PICTA Party to another. Where the goods in question do enter the commerce of an intermediary country, they cannot be granted originating status under the PICTA. For example a consignment of bananas, which is wholly produced in a PICTA Party is transhipped through Australia. Some bananas are taken from the consignment to be sold on the Australian market. The rest are repacked and ...
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