Common use of Chemical Reaction Clause in Contracts

Chemical Reaction. 1. A good that results from a chemical reaction in the territory of a Party shall be treated as an originating good. 2. For purposes of this Section, a “chemical reaction” is a process (including a biochemical process) that results in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule. 3. The following are not considered to be chemical reactions for the purposes of determining whether a good is originating: (a) dissolution in water or in another solvent; (b) the elimination of solvents, including solvent water; or (c) the addition or elimination of water of crystallization.