Common use of Fungible Goods Clause in Contracts

Fungible Goods. 1. In determining whether a good is originating for the purpose of preferential tariff treatment, any fungible goods shall be distinguished by: (a) physical segregation of the goods; or (b) any inventory management method, such as averaging, last-in- first-out ("LIFO") or first-in-first-out ("FIFO"), recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by the Party in which the production is performed. 2. The inventory management method selected under paragraph 1 for a particular fungible good shall continue to be used for that good throughout the fiscal year of the person that selected the inventory management method.