Common use of Example of the application Clause in Contracts

Example of the application. of De Minimis for goods other than textile goods (Article 31 and subparagraph (f) (i) in Section 1 of Annex 2) Company A produces a razor (HS8212.10) in Japan and plans to export them to the Philippines under the Agreement. The PSRs for the razor (HS8212.10) under the Agreement are: To prove that the razor qualifies as an originating good, Company A decided to choose the CTC rule in this case. The razor is made from Korean stainless steel(HS72.20) and Chinese handle grip of base metal(HS8212. 90). Since a handle grip does not undergo change in tariff classification from any other chapter, the razor does not meet the CTC rule. If the value of the handle grip (HS8212.90) is equivalent to 10% of F.O.B. price of the razor 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 31.