Common use of Fungible Goods or Materials Clause in Contracts

Fungible Goods or Materials. 1. In determining whether a good is an originating good, any fungible goods or materials shall be distinguished by: (a) physical separation of the goods or materials; or (b) an inventory management method recognized in the Generally Accepted Accounting Principles of the exporting Party. 2. The inventory management method selected under paragraph 1 for a particular fungible good or material shall continue to be used for that good or material throughout the fiscal year of the person that selected the inventory management method.