Neutral Elements

In order to determine whether a product originates in a Party, it shall not be necessary to determine the origin of the following elements which might be used in its manufacture:

1. energy and fuel.

2. production plants and equipment, including goods to be used for their maintenance.

3. machines, tools, dies and moulds; spare parts and materials used in the maintenance of equipment and buildings; lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; gloves, glasses, footwear, clothing, safety equipment and supplies; catalysts and solvents; equipment, devices and supplies used for testing or inspecting the product.

4. other goods which do not enter and which are not intended to enter into the final composition of the product.

Article 15. Accounting segregation

1. If originating and non-originating fungible materials are used in the working or processing of a product, the accounting segregation method may be used as per the applicable law provided that the number of originating goods in a statement is the same as the number of originating goods physically in the stocks.

2. General accounting principles refer to process, practices, particular regulations on the recording of revenues, expenses, costs, assets, liabilities, the disclosure of information and the preparation of financial statements.

Article 16. Principle of territoriality

1. The conditions set out in Chapter II relating to the acquisition of originating status shall be fulfilled without interruption in a Party.

2. If originating goods exported from a Party return from a non-Party, they shall be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that the returning goods:

a) are the same as those exported.

b) have not undergone any operation beyond what is necessary to preserve them in good condition while they were in that non-Party or while being exported.

Article 17. Non-alteration

1. Products declared for home use in a Party shall be the same products as exported from the other Party in which they are considered to originate. They shall not have been altered, transformed in any way during transport or storage or subjected to operations other than operations:

a) to preserve them in good condition.

b) other than adding or affixing marks, labels, seals or any other documentation to ensure compliance with specific domestic requirements of the importing Party.

c) the operations in paragraphs a and b have been carried out under customs supervision in the country or countries of transit or splitting prior to being declared for home use.

2. Storage of products or consignments may take place provided they remain under customs supervision in the country or countries of transit.

3. The splitting of consignments may take place where carried out by the exporter or under his responsibility, provided they remain under customs supervision in the country or countries of splitting.

4. In case of doubt, the importing Party may request the declarant to provide evidence of compliance, which may be given by any means, including:

a) contractual transport documents such as bills of lading.

b) factual or concrete evidence based on marking or numbering of packages.

c) any evidence related to the goods themselves.

d) a certificate of non-manipulation provided by the customs authorities of the country or countries of transit or splitting, or any other documents demonstrating that the goods remained under customs supervision in the country or countries of transit or splitting.

5. For the purpose of paragraph 4, “in case of doubt” means that the importing Party has the discretion of determining the cases for which the declarant is requested to provide evidence of compliance with paragraph 4 but it cannot routinely require the submission of that evidence.