Editorial Note on Part 10
Editorial Note: Nomenclature changes to part 10 appear by CBP Dec. 16-26, 81 FR 93010, Dec. 20, 2016.

§ 10.872 Definitions. For purposes of §§ 10.872 through 10.880: ( a ) *Exporter.* “Exporter” means a person who exports goods from the territory of a Party;
( b ) *Generally Accepted Accounting Principles.* “Generally Accepted Accounting Principles” means the recognized consensus or substantial authoritative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements. These standards may encompass broad guidelines of general application as well as detailed standards, practices, and procedures;
( c ) *Good.* “Good” means any merchandise, product, article, or material;
( d ) *Goods wholly the growth, product, or manufacture of one or both of the Parties.* “Goods wholly the growth, product, or manufacture of one or both of the Parties” means: ( 1 ) Mineral goods extracted in the territory of one or both of the Parties;
( 2 ) Vegetable goods, as such goods are defined in the HTSUS, harvested in the territory of one or both of the Parties;
( 3 ) Live animals born and raised in the territory of one or both of the Parties;
( 4 ) Goods obtained from live animals raised in the territory of one or both of the Parties;
( 5 ) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the Parties;
( 6 ) Goods (fish, shellfish, and other marine life) taken from the sea by vessels registered or recorded with a Party and flying its flag;
( 7 ) Goods produced from goods referred to in paragraph (d)(6) of this section on board factory ships registered or recorded with that Party and flying its flag;
( 8 ) Goods taken by a Party or a person of a Party from the seabed or beneath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed;
( 9 ) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not processed in the territory of a non-Party;
( 10 ) Waste and scrap derived from: ( i ) Production or manufacture in the territory of one or both of the Parties, or
( ii ) Used goods collected in the territory of one or both of the Parties, provided such goods are fit only for the recovery of raw materials;
( 11 ) Recovered goods derived in the territory of a Party from used goods, and utilized in the territory of that Party in the production of remanufactured goods; and
( 12 ) Goods produced in the territory of one or both of the Parties exclusively from goods referred to in paragraphs (d)(1) through (d)(10) of this section, or from their derivatives, at any stage of production;
( e ) *Importer.* “Importer” means a person who imports goods into the territory of a Party;
( f ) *Indirect material.* “Indirect material” means a good used in the growth, production, manufacture, 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 growth, production, or manufacture of a good, including: ( 1 ) Fuel and energy;
( 2 ) Tools, dies, and molds;
( 3 ) Spare parts and materials used in the maintenance of equipment and buildings;
( 4 ) Lubricants, greases, compounding materials, and other materials used in the growth, production, or manufacture of a good or used to operate equipment and buildings;
( 5 ) Gloves, glasses, footwear, clothing, safety equipment, and supplies;
( 6 ) Equipment, devices, and supplies used for testing or inspecting the good;
( 7 ) Catalysts and solvents; and
( 8 ) Any other goods that are not incorporated into the good but the use of which in the growth, production, or manufacture of the good can reasonably be demonstrated to be a part of that growth, production, or manufacture;
( g ) *Material.* “Material” means a good, including a part or ingredient, that is used in the growth, production, or manufacture of another good that is a new or different article of commerce that has been grown, produced, or manufactured in one or both of the Parties;
( h ) *Material produced in the territory of one or both of the Parties.* “Material produced in the territory of one or both of the Parties” means a good that is either wholly the growth, product, or manufacture of one or both of the Parties, or a new or different article of commerce that has been grown, produced, or manufactured in the territory of one or both of the Parties;
( i ) *New or different article of commerce.* “New or different article of commerce” means, except as provided in § 10.873(c) of this subpart, a good that: ( 1 ) Has been substantially transformed from a good or material that is not wholly the growth, product, or manufacture of one of both of the Parties; and
( 2 ) Has a new name, character, or use distinct from the good or material from which it was transformed;
( j ) *Non-originating material.* “Non-originating material” means a material that does not qualify as originating under this subpart or General Note 31, HTSUS;
( k ) *Packing materials and containers for shipment.* “Packing materials and containers for shipment” means the goods used to protect a good during its transportation to the United States, and does not include the packaging materials and containers in which a good is packaged for retail sale;
( l ) *Recovered goods.* “Recovered goods” means materials in the form of individual parts that result from: ( 1 ) The disassembly of used goods into individual parts; and
( 2 ) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition;
( m ) *Remanufactured good.* “Remanufactured good” means an industrial good that is assembled in the territory of a Party and that: ( 1 ) Is entirely or partially comprised of recovered goods;
( 2 ) Has a similar life expectancy to a like good that is new; and
( 3 ) Enjoys the factory warranty similar to that of a like good that is new;
( n ) *Simple combining or packaging operations.* “Simple combining or packaging operations” means operations such as adding batteries to electronic devices, fitting together a small number of components by bolting, gluing, or soldering, and repacking or packaging components together; and
( o ) *Substantially transformed.* “Substantially transformed” means, with respect to a good or material, changed as the result of a manufacturing or processing operation so that the good loses its separate identity in the manufacturing or processing operation and: ( 1 ) The good or material is converted from a good that has multiple uses into a good or material that has limited uses;
( 2 ) The physical properties of the good or material are changed to a significant extent; or
( 3 ) The operation undergone by the good or material is complex by reason of the number of different processes and materials involved and the time and level of skill required to perform those processes.