What are intermediate materials?
An intermediate material is a part you make yourself and then use in your own product. If that part qualifies on its own, it counts as originating when it goes into the product, even though it was made with imported inputs.
An example
You cast an engine block from imported aluminium, and the block meets its own rule. When the block goes into your engine it counts as originating, and the imported aluminium inside it no longer counts against the engine.
Why it helps
It's sometimes called roll-up or absorption. Once a part qualifies, the imported content inside it drops out of the sums for anything you make from it. Some agreements let you choose which parts to treat this way.
Where you'll find it. The article it's in, agreement by agreement.
- USMCAIntermediate materials, Article 4.8
- CAFTA-DRIntermediate materials, Article 4.2
- CPTPPIntermediate materials, Article 3.6, as materials used in production
- RCEPIntermediate materials, Article 3.12
- ATIGAIntermediate materials, Article 29
- ACFTAIntermediate materials, Article 5
- PEM ConventionIntermediate materials, Article 4
- CETAIntermediate materials, Article 5
- EU–Japan EPAIntermediate materials, Article 3.2
- EU–Korea FTAIntermediate materials, Article 5
- EU–Mercosur iTAIntermediate materials, Article 3.2
- EU–UK TCAIntermediate materials, Article 39
- EU–Vietnam FTAIntermediate materials, Article 5
- UK–Canada TCAIntermediate materials, Article 5
- UK–Japan CEPAIntermediate materials, Article 3.2
- UK–Vietnam FTAIntermediate materials, Article 5
- US–Australia FTAIntermediate materials, Article 5.5
- KORUSIntermediate materials, Article 6.2
- US–Singapore FTAIntermediate materials, Article 3.6
- Canada–Colombia FTAIntermediate materials, Article 305
- Canada–Indonesia CEPAIntermediate materials, Article 3.5
- Canada–Korea FTAIntermediate materials, Article 3.6
- Canada–Ukraine FTAIntermediate materials, Article 3.5
- EU GSPIntermediate materials, Article 45
- UK DCTSIntermediate materials, Regulation 4
- Canada GPTIntermediate materials, Section 3(2)