Example of the application Sample Clauses

Example of the application of De Minimis for textile goods (Article 31 and subparagraph (e) (ii) in Part 1 of Annex 2) Company A produces silk yarn (HS5006.00) in Japan and plans to export them to Indonesia under the Agreement. The PSRs for silk yarn (HS5006.00)under the Agreement are: A change to heading 50.05 through 50.06 from any heading outside that group. Silk yarn (HS5006.00) is made from Indian raw silk (HS5002.00) and Chinese silk thread (HS5006.00). Since silk thread does not undergo change in tariff classification, silk yarn does not meet the CTC rule. But if the weight of silk thread is equivalent to 7% of silk yarn or less, Company A is allowed to disregard the portion of silk thread for the purposes of the CTC rule pursuant to de minimis provision of Article 31.
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Example of the application of De Minimis for goods other than textile goods (Article 30 and subparagraph (e) (i) in Section 1 of Annex 2) Company A produces baby carriages (HS8715.00) in Japan and plans to export them to Malaysia under the Agreement. The PSRs for baby carriage (HS8715.00) under the Agreement are: A change to subheading 8712.00 through8716.90 from any other subheading; or No required change in tariff classification to subheading 8712.00 through 8716.90, provided there is a qualifying value content of not less than 40 percent. To prove that the baby carriage qualifies as an originating good, Company A decided to choose the CTC rule in this case. Baby carriage is made from Indian aluminum bar (HS7604.10) and Chinese handle grip (HS8715.00). Since handle grip does not undergo change in tariff classification from any other subheading, baby carriage does not meet the CTC rule. If the value of handle grip (HS8715.00) is equivalent to 10% of F.O.B. price of baby carriage or less, Company A is allowed to disregard the portion of handle grip for the purposes of the CTC rule pursuant to de minimis provision of Article 30.
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Example of the application of De Minimis for goods other than textile goods (Article 31 and subparagraph (f) (i) in Section 1 of Annex 2) Company A produces a razor (HS8212.10) in Japan and plans to export them to the Philippines under the Agreement. The PSRs for the razor (HS8212.10) under the Agreement are: A change to heading 82.01 through 82.15 from any other chapter; or No required change in tariff classification to heading 82.01 through 82.15, provided that there is a qualifying value content of not less than 40 percent. To prove that the razor qualifies as an originating good, Company A decided to choose the CTC rule in this case. The razor is made from Korean stainless steel(HS72.20) and Chinese handle grip of base metal(HS8212. 90). Since a handle grip does not undergo change in tariff classification from any other chapter, the razor does not meet the CTC rule. If the value of the handle grip (HS8212.90) is equivalent to 10% of F.O.B. price of the razor or less, Company A is allowed to disregard the portion of handle grip for the purposes of the CTC rule pursuant to de minimis provision of Article 31.
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Example of the application of the De Minimis for textile goods (subparagraph 1(c) of Article 44 of the Agreement) Company A produces silk yarn (HS5006.00) in Party A and plans to export it to Party B under the Agreement. Pursuant to subparagraph (c) of Article 39 of the Agreement, the requirement for silk yarn (HS5006.00) to qualify as an originating good is stipulated in the PSR. The applicable PSR is: A change to heading 50.04 through 50.06 from any other heading, except from heading 50.04 through 50.06. The silk yarn (HS5006.00) is made from raw silk (HS5002.00) of non-Party X and silk thread (HS5006.00) of non-Party Y. While raw silk undergoes a CTC at the level of heading, since the silk thread does not undergo a CTC from any other heading, the silk yarn does not satisfy the CTC rule. Nevertheless, if the weight of the silk thread does not exceed 10% of that of the silk yarn, the silk yarn is considered as an originating good of Party A in accordance with subparagraph 1(c) of Article 44 of the Agreement. Rule 8: Unassembled or disassembled goods
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