Common use of Example of the application Clause in Contracts

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: 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.

Example of the application. of De Minimis for textile goods (Article 31 30 and subparagraph (e) (ii) in Part Section 1 of Annex 2) Company A produces silk yarn (HS5006.00) which is made in Japan and plans to export them to Indonesia Malaysia under the Agreement. The PSRs for silk yarn (HS5006.00)under the Agreement are: ; 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 If the weight of silk thread is equivalent to 7% of silk yarn or lessyarn, 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 3130.

Example of the application. of De Minimis for textile goods (Article 31 and subparagraph (eg) (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 HS5006.00) under the Agreement are: 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.