Common use of Neutral Elements Clause in Contracts

Neutral Elements. 1. In determining whether a good is an originating good, any neutral elements as defined in paragraph 2 shall be treated as originating. 2. Neutral element means a good used in the production of another good but not physically incorporated into that other good, or a good used in the operation of equipment associated with the production of another good, including: (a) fuel and energy; (b) tools, dies, and moulds; (c) spare parts and materials used in the maintenance of equipment and buildings; (d) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings; (e) gloves, glasses, footwear, clothing, safety equipment, and supplies; (f) equipment, devices, and supplies used for testing or inspecting the goods; (g) catalysts and solvents; and (h) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.

Appears in 5 contracts

Samples: Free Trade Agreement, Free Trade Agreement, Free Trade Agreement

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