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Packing, Packaging and Indirect materials treatment in various free trades

Definition of Packing, Packaging and Indirect Material

Packaging materials and containers means materials and containers in which a good is packaged for retail sale
Packing materials and containers means materials and containers that are used to protect a good during transportation, but does not include packaging materials and containers;
Indirect material means a good used in the production, testing or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, and includes
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 other goods,g)      catalysts and solvents, andh)      any other goods that are not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be part of that production;

Packing, packaging and indirect materials Treatment

NAFTA:

Article 4.09:  Packaging Materials and Containers for Retail Sale

  • Packaging materials and containers in which a good is packed for retail sale shall, if classified with the good, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 401, and, 
  • If the good is subject to a regional value content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

Article 4.10:  Packing Materials and Containers for Shipment

  • Packing materials and containers in which a good is packed for shipment shall be disregarded in determining whether the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in Annex 401; and
  • the good satisfies a regional value content requirement.

Article 4.08:  Indirect Materials

For purposes of determining whether a good is an originating good, an indirect material that is used in the production of the good
·         shall be considered to be an originating material, regardless of where that indirect material is produced; and
·         if the good is subject to a regional value-content requirement, for purposes of calculating the net cost under the net cost method, the value of the indirect material shall be the costs of that material that are recorded on the books of the producer of the good.

US Australia Free Trade

ARTICLE 5.8: PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE

·         Packaging materials and containers in which a good is packaged for retail sale, if classified with the good, shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 5-A or Annex 4-A, and,
·         if the good is subject to a regional value content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good

ARTICLE 5.9: PACKING MATERIALS AND CONTAINERS FOR SHIPMENT

Packing materials and containers for shipment shall be disregarded in determining whether:
·         the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 5-A or Annex 4-A; and
·         the good satisfies a regional value content requirement.

ARTICLE 5.10: INDIRECT MATERIALS

Indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in the accounting records of the producer of the good.

U.S. Chile Free Trade

Article 4.8: Indirect Materials

Indirect material shall be considered to be an originating material without regard to where it is produced.

Article 4.9: Packaging Materials and Containers for Retail Sale

·         Packaging materials and containers in which a good is packaged for retail sale, if classified with the good, shall be disregarded in determining whether all non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4.1, and,
·         If the good is subject to a regional value content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

Article 4.10: Packing Materials and Containers for Shipment

Packing materials and containers for shipment shall be disregarded in determining whether:
·         the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in Annex 4.1; and
·         the good satisfies a regional value content requirement.

CAFTA-DR (Dominican Republic-Central America FTA)

Article 4.9: Packaging Materials and Containers for Retail Sale

·         Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4.1 and,
·         If the good is subject to a regional value content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

Article 4.10: Packing Materials and Containers for Shipment

Packing materials and containers for shipment shall be disregarded in determining whether a good is originating.

Article 4.11: Indirect Materials Used in Production

Indirect material shall be considered to be an originating material without regard to where it is produced.

U.S. Colombia Free Trade

Article 4.10: Packaging Materials and Containers for Retail Sale

·         Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4.1 or Annex 3-A (Textile and Apparel Specific Rules of Origin).
·         If a good is subject to a regional value content requirement, the value of packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

Article 4.11: Packing Materials and Containers for Shipment

Packing materials and containers for shipment shall be disregarded in determining whether a good is originating.

Article 4.12: Indirect Materials Used in Production

Indirect material shall be considered to be an originating material without regard to where it is produced.

U.S. - Korea Free Trade Agreement

ARTICLE 6.10: PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE

·         Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4-A (Specific Rules of Origin for Textile or Apparel Goods) or Annex 6-A. 2.
·         If a good is subject to a regional value content requirement, the value of packaging materials and containers described in paragraph 1 shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

ARTICLE 6.11: PACKING MATERIALS AND CONTAINERS FOR SHIPMENT

Packing materials and containers for shipment shall be disregarded in determining whether a good is originating.

ARTICLE 6.12: INDIRECT MATERIALS

 Indirect material shall be disregarded for the purpose of determining whether a good is originating pursuant to subparagraphs (a), (b)(i), and (c) of Article 6.1.

U.S. – Morocco Free Trade

ARTICLE 5.7: PACKAGING AND PACKING MATERIALS AND CONTAINERS FOR RETAIL SALE AND FOR SHIPMENT

Packaging and packing materials and containers for retail sale and for shipment shall be disregarded in determining whether the good qualifies as an originating good, except to the extent that the value of such packaging and packing materials and containers may be counted toward satisfying the 35 percent value-content requirement specified in Article 5.1(b), where applicable.

ARTICLE 5.8: INDIRECT MATERIALS

Indirect materials shall be disregarded in determining whether the good qualifies as an originating good, except that the cost of such indirect materials may be counted toward satisfying the 35 percent value-content requirement where applicable.

U.S. – Panama Free Trade

Article 4.9: Packaging Materials and Containers for Retail Sale

·         Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4.1 and,
·         If the good is subject to a regional value content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

Article 4.10: Packing Materials and Containers for Shipment

Packing materials and containers for shipment shall be disregarded in determining whether a good is originating.

Article 4.11: Indirect Materials Used in Production

 Indirect material shall be considered to be an originating material without regard to where it is produced.

U.S. – Peru Free Trade

Article 4.10: Packaging Materials and Containers for Retail Sale

·         Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4.1 or Annex 3-A (Textile and Apparel Specific Rules of Origin).
·         If a good is subject to a regional value content requirement, the value of packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

Article 4.11: Packing Materials and Containers for Shipment

Packing materials and containers for shipment shall be disregarded in determining whether a good is originating.

Article 4.12: Indirect Materials Used in Production

Indirect material shall be considered to be an originating material without regard to where it is produced.

U.S. – Singapore Free Trade

ARTICLE 3.9: PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE\

·         Packaging materials and containers in which a good is packaged for retail sale, if classified with the good, shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 3A and,
·         If the good is subject to a regional value-content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.

ARTICLE 3.10: PACKING MATERIALS AND CONTAINERS FOR SHIPMENT

Packing materials and containers in which a good is packed for shipment shall be disregarded in determining whether: (a) the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in Annex 3A; and (b) the good satisfies a regional value content requirement.

ARTICLE 3.11: INDIRECT MATERIALS

Indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in the accounting records of the producer of the good

Trans-Pacific Partnership

Article 3.14: Packaging Materials and Containers for Retail Sale

·         Packaging materials and containers in which a good is packaged for retail sale, if classified with the good, are disregarded in determining whether all the non-originating materials used in the production of the good have satisfied the applicable process or change in tariff classification requirement set out in Annex 3-D (Product-Specific Rules of Origin) or whether the good is wholly obtained or produced.
·         If a good is subject to a regional value content requirement, the value of the packaging materials and containers in which the good is packaged for retail sale, if classified with the good, are taken into account as originating or non-originating, as the case may be, in calculating the regional value content of the good.

Article 3.15: Packing Materials and Containers for Shipment

Packing materials and containers for shipment are disregarded in determining whether a good is originating.

Article 3.16: Indirect materials


Indirect material is considered to be originating without regard to where it is produced.

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