Common use of Direct Consignment Clause in Contracts

Direct Consignment. A good will retain its originating status as determined under Article 2 (Originating Goods) if the following conditions have been met: (a) the good has been transported to the importing Party without passing through any non-Party; or (b) the good has transited through a non-Party, provided that: (i) the good has not undergone subsequent production or any other operation outside the territories of the Parties other than unloading, reloading, storing, or any other operations necessary to preserve them in good condition or to transport them to the importing Party; (ii) the good has not entered the commerce of a non-Party; and (iii) the transit entry is justified for geographical, economic or logistical reasons.