Common use of Tolerances Clause in Contracts

Tolerances. 1. If non-originating materials used in the production of a product do not satisfy the requirements set out in Annex 3-B (Product-specific rules of origin), the product shall be considered as originating in a Party, provided that: (a) for all products, except for the products classified under HS Chapters 50 to 63, the value of non-originating materials used in the production of the products concerned does not exceed 10 % of the ex-works price of those products; (b) for the products classified under HS Chapters 50 to 63, the tolerances set out in Notes 7 and 8 of Annex 3-A (Introductory notes to product-specific rules of origin) apply. 2. Paragraph 1 does not apply if the value or weight of non-originating materials used in the production of a product exceeds any of the percentages for the maximum value or weight of non- originating materials as specified in the requirements set out in Annex 3-B (Product-specific rules of origin). 3. Paragraph 1 does not apply to products wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products). If Annex 3-B (Product-specific rules of origin) requires that the materials used in the production of a product are wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products), paragraphs 1 and 2 apply.

Tolerances. 1. If non-originating materials used in the production of a product do not satisfy the requirements set out in Annex 3-B (Product-specific rules of origin), the product shall be considered as originating in a Party, provided that: (a) for all products, except for the products a product classified under HS Chapters 50 to 63, the value of those non-originating materials used in the production of the those products concerned does not exceed 10 % of the ex-works ex‑works price of those productsthe product; (b) for the products a product classified under HS Chapters 50 to 63, the tolerances set out in Notes 7 and 8 of Annex 3-A (Introductory notes to product-specific rules of origin) apply. 2. Paragraph 1 does not apply if the value or weight of non-originating materials used in the production of a product exceeds any of the percentages for the maximum value or weight of non- non-originating materials as specified in the requirements set out in Annex 3-B (Product-specific rules of origin). 3. Paragraph 1 does not apply to products wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products). If Annex 3-B (Product-specific rules of origin) requires that the materials used in the production of a product are wholly obtained in a Party within the meaning of Article 3.4 (Wholly obtained products)obtained, paragraphs 1 and 2 apply.