Common use of Intermediate Materials Clause in Contracts

Intermediate Materials. 1. When an originating good is used in the subsequent production of another good, no account shall be taken of the non- originating materials contained in the originating good for purposes of determining the originating status of the subsequently produced good. 2. When a non-originating good is used in the subsequent production of another good: (a) for purposes of calculating the value of the non-originating materials of the subsequently produced good, an account shall be taken only of the non-originating materials contained in the non-originating good; and (b) for purposes of calculating the value of the originating materials of the subsequently produced good, an account shall be taken of the originating materials contained in the non-originating good.