Document ID: chunk:federal_register_of_legislation:C2021A00004:clause:1_153yd:p1
Version: federal_register_of_legislation:C2021A00004
Segment Type: clause
Provision Reference: sch 1 cl 153YD (pt 1/3)
Character Range: 5394–8094

153YD  Goods produced in the US, or in the US and Australia, from non‑originating materials
 (1) Goods are US originating goods if:
 (a) they are classified to a Chapter, heading or subheading of the Harmonized System that is covered by the table in Annex 4‑A or 5‑A of the Agreement; and
 (b) they are produced entirely in the US, or entirely in the US and Australia, from non‑originating materials only or from non‑originating materials and originating materials; and
 (c) the goods satisfy the requirements applicable to the goods in Annex 4‑A or 5‑A of the Agreement.
 (2) Without limiting paragraph (1)(c), a requirement may be specified in the table in Annex 4‑A or 5‑A of the Agreement by using an abbreviation that is given a meaning for the purposes of that Annex.

Change in tariff classification
 (3) If a requirement that applies in relation to the goods is that all non‑originating materials used in the production of the goods must have undergone a particular change in tariff classification, the regulations may prescribe when a non‑originating material used in the production of the goods is taken to satisfy the change in tariff classification.

Rules for goods that are not a textile or apparel good
 (4) If:
 (a) a requirement that applies in relation to the goods is that all non‑originating materials used in the production of the goods must have undergone a particular change in tariff classification; and
 (b) the goods are not a textile or apparel good; and
 (c) one or more of the non‑originating materials used in the production of the goods do not satisfy the change in tariff classification;
then the requirement is taken to be satisfied if the total value of the non‑originating materials covered by paragraph (c) does not exceed 10% of the customs value of the goods.
Note: See subsection (6) for goods that are a textile or apparel good.
 (5) In applying subsection (4), disregard non‑originating materials covered by paragraph 2 of Article 5.2 of Chapter 5 of the Agreement.

Rules for goods that are a textile or apparel good
 (6) If:
 (a) a requirement that applies in relation to the goods is that all non‑originating materials used in the production of the goods must have undergone a particular change in tariff classification; and
 (b) the goods are a textile or apparel good; and
 (c) if the component of the goods, that determines the tariff classification of the goods, contains elastomeric yarn—the yarn is wholly formed in the US or Australia; and
 (d) the component of the goods, that determines the tariff classification of the goods, contains fibres or yarns that are non‑originating materials and that do not satisfy the change in tariff classification;