Neutral elements
Also called: indirect materials
Items used in producing goods that do not enter into their final composition, such as energy, fuel, machines, tools and lubricants. Origin rules generally ignore their origin when determining whether a product is originating.
In practice
Imported machinery or energy does not undermine origin, so producers can leave it out of origin calculations.
Related terms
- Preferential origin
- Origin status under the rules of a specific free trade agreement or unilateral preference scheme that entitles goods to a reduced or zero duty. It is…
- Non-originating materials
- Materials used in production that do not qualify as originating, including inputs from third countries and inputs of undetermined origin.…
- Sufficient processing
- The degree of working that non-originating materials must undergo for the final product to gain preferential origin. Agreements express it through…