Document ID: chunk:federal_register_of_legislation:C2005C00021:clause:1_153ye:p1
Version: federal_register_of_legislation:C2005C00021
Segment Type: clause
Provision Reference: sch 1 cl 153YE (pt 1/2)
Character Range: 21458–24392

153YE  Goods (except clothing and textiles) produced entirely in the US or in the US and Australia from non‑originating materials

 (1) Goods are US originating goods if:
 (a) a tariff classification (the final classification) that is specified in column 2 of the Schedule 1 tariff table applies to the goods; 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) if any of the following 3 requirements apply in relation to the goods—that requirement is satisfied.

First requirement

 (2) Subject to subsection (3), the first requirement applies only if a change in tariff classification is specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods. The first requirement is that:
 (a) each of the non‑originating materials satisfies the transformation test (see subsection (8)); or
 (b) the following are satisfied:
 (i) the total value of all the non‑originating materials does not exceed 10% of the customs value of the goods;
 (ii) if one or more of the non‑originating materials are prescribed for the purposes of this paragraph—each of those non‑originating materials satisfies the transformation test (see subsection (8)).

Note 1: Paragraph (2)(b) relates to Article 5.2 (De Minimis) of the Agreement.

Note 2: The value of the non‑originating materials is to be worked out in accordance with the regulations: see subsection 153YA(2).

 (3) However, the first requirement does not apply if:
 (a) an alternative requirement to the change in tariff classification is also specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods; and
 (b) that alternative requirement is satisfied.

Second requirement

 (4) Subject to subsection (5), the second requirement applies only if a regional value content requirement is specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods. The second requirement is that the goods satisfy that regional value content requirement.

 (5) However, the second requirement does not apply if:
 (a) an alternative requirement to the regional value content requirement is also specified in column 3 of the Schedule 1 tariff table opposite the final classification for the goods; and
 (b) that alternative requirement is satisfied.

 (6) The regulations may prescribe different regional value content requirements for different kinds of goods.

Third requirement

 (7) The third requirement is that the goods satisfy any other requirement that is specified in, or 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