Rule 12 - Accounting Segregation

Accounting segregation ensures inventory methods preserve originating status parity with physical segregation under CEPA rules.

Originating status for fungible products is determined by physical segregation or, if impracticable, by an inventory management method (e.g., averaging, LIFO, FIFO) recognised by the Party's generally accepted accounting principles. The chosen method must be used consistently through the fiscal year, permit a clear distinction between originating and non-originating materials (including undetermined origin), and guarantee over twelve months that no more products receive originating status than would occur under physical segregation. Producers must retain records enabling verification, and the competent authority may require prior authorisation for the stock-management method.