Document ID: chunk:federal_register_of_legislation:C2005C00021:clause:1_153ye:p2
Version: federal_register_of_legislation:C2005C00021
Segment Type: clause
Provision Reference: sch 1 cl 153YE (pt 2/2)
Character Range: 24123–25317

referred to in, column 3 of the Schedule 1 tariff table opposite the final classification for the goods.

Transformation test

 (8) A non‑originating material satisfies the transformation test if:
 (a) it satisfies the change in tariff classification that is specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods; or
 (b) it does not satisfy the change in tariff classification mentioned in paragraph (a), but it was produced entirely in the US, or entirely in the US and Australia, from other non‑originating materials, and each of those materials satisfies the transformation test (including by one or more applications of this subsection).

Note 1: Paragraph (8)(b) relates to paragraph 2 of Article 5.3 (Accumulation) of the Agreement.

Note 2: Subsection (8) operates in a recursive manner: a non‑originating material may satisfy the transformation test in its own right, or it may satisfy it because each non‑originating material used to produce it satisfies the transformation test (whether because each of those materials does so in its own right, or because each non‑originating material used to produce the material does so), and so on.