Accounting segregation for fungible materials requires prior authorisation, accounting compliance, and records to verify originating status. Accounting segregation may be used to determine the originating character of goods where originating and non-originating fungible materials are used, subject to prior authorisation. Fungible materials are materials of the same kind and commercial quality, with the same technical and physical characteristics, that cannot be distinguished once incorporated into the finished product. The inventory management system must follow generally accepted accounting principles, ensure no more final products receive originating status than physical segregation would allow, and be supported by records for customs verification.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Accounting segregation for fungible materials requires prior authorisation, accounting compliance, and records to verify originating status.
Accounting segregation may be used to determine the originating character of goods where originating and non-originating fungible materials are used, subject to prior authorisation. Fungible materials are materials of the same kind and commercial quality, with the same technical and physical characteristics, that cannot be distinguished once incorporated into the finished product. The inventory management system must follow generally accepted accounting principles, ensure no more final products receive originating status than physical segregation would allow, and be supported by records for customs verification.
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