19 CFR § 10.457 - Fungible goods and materials.

---
identifier: "/us/cfr/t19/s10.457"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "19 CFR § 10.457 - Fungible goods and materials."
title_number: 19
title_name: "Customs Duties"
section_number: "10.457"
section_name: "Fungible goods and materials."
chapter_name: "U.S. CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY; DEPARTMENT OF THE TREASURY"
part_number: "10"
part_name: "ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC."
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 1498, 1508, 1623, 1624, 4513."
regulatory_source: "28 FR 14663, Dec. 31, 1963, unless otherwise noted."
cfr_part: "10"
---


# 10.457 Fungible goods and materials.

(a) A person claiming preferential tariff treatment under the US-CFTA for a good may claim that a fungible good or material is originating either based on the physical segregation of each fungible good or material or by using an inventory management method. For purposes of this subpart, the term “inventory management method” means—

(1) Averaging,

(2) “Last-in, first-out,”

(3) “First-in, first-out,” or

(4) Any other method that is recognized in the generally accepted accounting principles of the Party in which the production is performed (whether Chile or the United States) or otherwise accepted by that Party.

(b) A person selecting an inventory management method under paragraph (a) of this section for particular fungible goods or materials must continue to use that method for those fungible goods or materials throughout the fiscal year of that person.

[CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-39, 71 FR 76134, Dec. 20, 2006]