INTERPRETATIVE NOTES. 1. For goods covered in this Annex, a good is an originating good if: (a) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in this Annex as a result of production occurring entirely in the territory of one or both of the Parties, or the good otherwise satisfies the applicable requirements of this Annex where a change in tariff classification for each non-originating material is not specified; and (b) the good satisfies any other applicable requirements of this Chapter. 2. For purposes of interpreting the rules of origin set out in this Annex: (a) the specific rule, or specific set of rules, that applies to a particular heading or subheading is set out immediately adjacent to the heading or subheading; (b) a rule applicable to a subheading shall take precedence over a rule applicable to the heading which is parent to that subheading; (c) a requirement of a change in tariff classification applies only to non-originating materials; and (d) the following definitions apply:
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Sources: Free Trade Agreement, Free Trade Agreement