Expendable Goods and Materials Sample Clauses

Expendable Goods and Materials. 1. For purposes of establishing whether a good is originating, when originating and non-originating fungible materials that are physically mixed or combined are used in its production, the origin of the materials may be determined by any inventory management method recognized in the Generally Accepted Accounting Principles of the Party where the production takes place and set forth in its national legislation. 2. When originating and non-originating fungible goods are physically mixed or combined, the origin of the good may be determined by any inventory management method recognized in the Generally Accepted Accounting Principles of the Party where the production takes place and set out in its domestic legislation. A good to be exported to the territory of the other Party, whose origin has been determined in accordance with this Article, shall not undergo any production process or any other operation in the territory of the Party in which they were physically mixed or combined, other than loading, unloading or any other operation necessary to maintain the goods in good condition or to transport them to the territory of the other Party. 3. The inventory management method selected pursuant to this Article for a particular commodity or consumable shall continue to be used for that commodity or consumable throughout the taxable year of the person who selected the inventory management method.

Expendable Goods and Materials. 1. For the purpose of establishing whether a good is originating, when originating and non-originating fungible materials that are physically mixed or combined in inventory are used in its production, the origin of the materials may be determined by one of the inventory management methods established in paragraph 3. 2. When originating and non-originating fungible goods are physically mixed or combined in inventory, and prior to their exportation they do not undergo any production process or any other operation in the territory of the Party in which they were physically mixed or combined, other than unloading, reloading or any other movement necessary to maintain the goods in good condition or to transport them to the territory of the other Party, the origin of the good may be determined from one of the inventory management methods set out in paragraph 3. 3. The applicable inventory management methods for expendable materials or goods shall be as follows: (a) FIFO" (first-in-first-out) is the inventory management method whereby the origin of the number of units of the materials or consumables first received into inventory is considered to be the origin in equal number of units of the materials or consumables first removed from inventory;

Expendable Goods and Materials. 1. Each Party shall provide that a fungible material or good is originating when the importer, exporter or producer has: (a) physically segregated for each commodity or consumable; or (b) used any inventory management method, such as average, last-in-first-out (LIFO) or first-in-first-out (FIFO), recognized in the Generally Accepted Accounting Principles of the Party where the production takes place; or has been otherwise accepted by the Party where the production takes place. 2. Each Party shall provide that where an inventory management method is chosen, as set out in paragraph 1, for certain fungible goods or materials, it shall continue to be used for those goods or materials throughout the fiscal year of the person who chose the inventory management method.