Common use of Example of the application Clause in Contracts

Example of the application. of De Minimis for goods other than textile goods (Article 30 and subparagraph (e) (i) in Section 1 of Annex 2) Company A produces baby carriages (HS8715.00) in Japan and plans to export them to Malaysia under the Agreement. The PSRs for baby carriage (HS8715.00) under the Agreement are: To prove that the baby carriage qualifies as an originating good, Company A decided to choose the CTC rule in this case. Baby carriage is made from Indian aluminum bar (HS7604.10) and Chinese handle grip (HS8715.00). Since handle grip does not undergo change in tariff classification from any other subheading, baby carriage does not meet the CTC rule. If the value of handle grip (HS8715.00) is equivalent to 10% of F.O.B. price of baby carriage or less, Company A is allowed to disregard the portion of handle grip for the purposes of the CTC rule pursuant to de minimis provision of Article 30.