Fallback method definition
Fallback method means the price valuation method stipulated under the Article 7 of the World Trade Organization (WTO)’s “Agreement on Implementation of Article VII of the General Agreement on Tariff and Trade 1994)”.
Fallback method has been elected for a certain type of transaction and Party, the IM-Amounts for the Covered Transactions of this type to be provided to the relevant Party as IM-Security Receiver are to be calculated on the basis of ISDA-SIMMTM, unless one Party notifies the other Party in text form that the IM-Amounts need to be determined under EMIR on the basis of the Standard-Method for the relevant type of transaction. Where a Party receives such a notification, the IM-Amounts for the types of transactions specified in the notification are to be determined on the basis of the Standard Method from the later of the following two dates (“Fallback Date”): (i) IM-Bank Business Days following the receipt of the notification (ii) The point in time specified in the notification as of which, the determination is to be made on the basis of the Standard Method for this type of transaction. Dabei sind die IM-Beträge nur für solche erfassten Einzelabschlüsse dieser Geschäftsart nach der Standardisierten Methode zu berechnen, die nach dem Rückfallzeitpunkt abgeschlossen werden. The IM-Amounts are only to be calculated on the basis of the Standard Method for those Covered Transactions of the relevant type which have been concluded after the Fallback Date.
Examples of Fallback method in a sentence
Reasonable means provided in Article 11 of the Rules is the same as the Fall-back method in Article 7 of the WTO Valuation Agreement if the customs value of the imported goods cannot be determined under the provisions of Articles 1 through 6 in WTO Agreement.