Fungible Goods. 1. Where originating and non-originating fungible goods are used in the preparation or production of a good, the origin of that good may be determined by applying one of the following inventory-management methods, at the choice of the producer:
(a) First-in-first-out (FIFO);
(b) last-in-first-out (LIFO); or
(c) method of averages.
2. Where originating and non-originating fungible goods are physically commingled in the inventory and do not undergo any productive process or any other operation in the territory of the Party in which they were physically commingled, other than unloading, reloading or any other movement necessary to maintain the goods in good condition or ship them to the territory of another Party, the origin of the good may be determined on the basis of one of the inventory management methods.
3. Once one of the inventory management methods has been selected, it shall be used during the entire fiscal year or period.
Article 4.10 Sets and assortments of goods
1. Sets and assortments of goods classified as provided in Rule 3 of the General Rules of Interpretation of the Harmonized System and goods whose description under the nomenclature of the Harmonized System is specifically that of a set or assortment shall qualify as originating, provided that each of the goods in the set or assortment complies with the rules of origin established in this Chapter and in Annex 4.03.
2. Notwithstanding paragraph 1, a set or assortment of goods shall be considered originating if the value of all the non-originating goods used to form the set or assortment does not exceed the percentage established in Article 4.08(1) of the value of the set or assortment, adjusted on the basis of Article 4.07 (1) or (2), as applicable.
3. The provisions of this Article shall take precedence over the specific rules established in Annex 4.03.
Fungible Goods. 1. In determining whether a good is originating for the purpose of preferential tariff treatment, any fungible goods shall be distinguished by: (a) physical segregation of the goods; or (b) any inventory management method, such as averaging, last-in- first-out ("LIFO") or first-in-first-out ("FIFO"), recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by the Party in which the production is performed.
2. The inventory management method selected under paragraph 1 for a particular fungible good shall continue to be used for that good throughout the fiscal year of the person that selected the inventory management method.
Fungible Goods. 1. In the preparation or production of a good which uses originating or non- originating fungible goods, the origin of these goods can be determined by the application of one of the followi ng methods of inventory management, to be selected by the producer:
(a) first in, first out (FIFO) method;
(b) last in, first out (LIFO) method; or
(c) averaging method.
2. Where originating or non-originating fungible goods are mixed or combined physically in warehouse and do not go through any production process or any operation other than unloading, reloading or any other necessary movement in the territory of the Party before the exportation to keep the good in good condition or to transport them to the territory of the other Party, the origin of the goods shall be determined by one of the inventory management methods.
3. Once the method of inventory management is selected it shall be used during the entire period or a fiscal year.
Fungible Goods. 1. Where in the development or production of goods are used and non-originating fungible goods originating, the origin of these goods may be determined by one of the inventory management methods, at the choice of the producer:
a) Method of first in, first out (FIFO);
b) Method of last in, first out (UEPs); or
Fungible Goods. 1. Where originating and non-originating fungible goods are used in the preparation or production of a good, the origin of that good may be determined by applying one of the following inventory-management methods, at the choice of the producer:
(a) First-in-first-out (FIFO);
(b) last-in-first-out (LIFO); or
(c) method of averages.
2. Where originating and non-originating fungible goods are physically commingled in the inventory and do not undergo any productive process or any other operation in the territory of the Party in which they were physically commingled, other than unloading, reloading or any other movement necessary to maintain the goods in good condition or ship them to the territory of another Party, the origin of the good may be determined on the basis of one of the inventory management methods.
3. Once one of the inventory management methods has been selected, it shall be used during the entire fiscal year or period.
Fungible Goods. 1. Fungible goods or materials shall be treated as originating based on the:
(a) physical separation of the good or material; or
(b) use of any inventory management method recognised in the Generally Accepted Accounting Principles of the Party where the production is performed, if originating and non-originating fungible goods or materials are comingled, provided that the inventory management method selected is used throughout the fiscal year of the person that selected the inventory management method.
2. An inventory management system under subparagraph 1 (a) must ensure that no more goods or materials receive originating status than would have been the case if the fungible goods or materials had been physically segregated.
