Common use of Accounting segregation Clause in Contracts

Accounting segregation. 1. Where identical and interchangeable originating and non-originating materials4 are used in the manufacture of a good, those materials shall be physically segregated, according to their origin, during storage. 2. For the purposes of establishing if a good is originating, when in its manufacture are utilized originating and non-originating identical and interchangeable materials, mixed or physically combined, the origin of such materials can be determined by any of the inventory management methods applicable in the Party. 3. Where considerable cost or material difficulties arise in keeping separate stocks of originating and non-originating materials which are identical and interchangeable, the customs authorities may authorize the so-called “accounting segregation” method to be used for managing such stocks. 4. This method must be able to ensure that, for a specific reference-period, the number of goods obtained which could be considered as “originating” is the same as that which would have been obtained if there had been physical segregation of the stocks. 5. The customs authorities may grant such authorisations, subject to any conditions deemed appropriate. 6. This method is recorded and applied on the basis of the general accounting principles applicable in the Party where the good was manufactured. 7. The beneficiary of this facilitation may issue or apply for Proofs of Origin, as the case may be, for the quantity of goods which may be considered as originating. At the request of the customs authorities, the beneficiary shall provide a statement of how the quantities have been managed. 8. The customs authorities shall monitor the use made of the authorisation and may withdraw it at any time whenever the beneficiary makes improper use of the authorisation in any manner whatsoever or fails to fulfil any of the other conditions laid down in this Chapter.