Common use of Indirect Materials Clause in Contracts

Indirect Materials. 1. An indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in accordance with the Generally Accepted Accounting Principles in the records of the producer of the good. 2. For the purposes of this Article, “indirect material” means a good used in the production, testing, or inspection of another good but not physically incorporated into that other good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including: (a) fuel and energy; (b) tools, dies, and moulds; (c) spare parts and goods used in the maintenance of equipment and buildings; (d) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings; (e) gloves, glasses, footwear, clothing, and safety equipment and supplies; (f) equipment, devices, and supplies used for testing or inspecting goods; (g) catalysts and solvents; and (h) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.

Indirect Materials. 1. An indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in accordance with the Generally Accepted Accounting Principles in the records of the producer of the good. 2. For the purposes of this Article, “indirect material” means a good used in the production, testing, or inspection of another good but not physically incorporated into that other good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including: (a) fuel and energy; (b) tools, dies, and moulds; (c) spare parts and goods used in the maintenance of equipment and buildings; (d) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment operateequipment and buildings; (e) gloves, glasses, footwear, clothing, and safety equipment and supplies; (f) equipment, devices, and supplies used for testing or inspecting goods; (g) catalysts and solvents; and (h) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.