Common use of Average method Clause in Contracts

Average method. 1. Where the exporter or person referred to in Subsection 7.2 chooses the average method, the origin of each shipment of fungible goods withdrawn from finished goods inventory during a one- month or three-month period, at the choice of the exporter or person, is determined on the basis of the ratio of originating goods and non-originating goods in finished goods inventory for the preceding one-month or three-month period that is calculated by dividing: (a) the sum of: (i) the total units of originating goods or non-originating goods that are fungible goods and that were in finished goods inventory at the beginning of the preceding one-month or three-month period; and (ii) the total units of originating or non-originating goods that are fungible goods and that were received in finished goods inventory during that preceding one- month or three-month period. by: (b) the sum of: (i) the total units of originating goods and non-originating goods that are fungible goods and that were in finished goods inventory at the beginning of the preceding one-month or three-month period; and (ii) the total units of originating goods and non-originating goods that are fungible goods and that were received in finished goods inventory during that preceding one-month or three-month period. 2. The ratio calculated with respect to a preceding month or three-month period under paragraph 1 is applied to the fungible goods remaining in finished goods inventory at the end of the preceding month or three-month period.

Average method. 1. Where the exporter or person referred to in Subsection 7.2 chooses the average method, the origin of each shipment of fungible goods withdrawn from finished goods inventory during a one- one-month or three-month period, at the choice of the exporter or person, is determined on the basis of the ratio of originating goods and non-originating goods in finished goods inventory for the preceding one-month or three-month period that is calculated by dividing: (a) the sum of: (i) the total units of originating goods or non-originating goods that are fungible goods and that were in finished goods inventory at the beginning of the preceding one-month or three-month period; and (ii) the total units of originating or non-originating goods that are fungible goods and that were received in finished goods inventory during that preceding one- month or three-month period. by: (b) the sum of: (i) the total units of originating goods and non-originating goods that are fungible goods and that were in finished goods inventory at the beginning of the preceding one-month or three-month period; and (ii) the total units of originating goods and non-originating goods that are fungible goods and that were received in finished goods inventory during that preceding one-month or three-month period. 2. The ratio calculated with respect to a preceding month or three-month period under paragraph 1 is applied to the fungible goods remaining in finished goods inventory at the end of the preceding month or three-month period.