(1) For subsection 153ZME(2) of the Act, each non-originating material used in the production of the goods must satisfy the change in tariff classification mentioned in column 3 of the table in Schedule 1 to this instrument next to the heading or sub-heading that applies to the goods.
(2) For subsection 153ZME(3) of the Act, a non-originating material that does not satisfy the change in tariff classification mentioned in subsection (1) is taken to satisfy the change in tariff classification if:
(a) it was produced entirely in the territory of Korea, or entirely in the territory of Korea and the territory of Australia, from other non-originating materials; and
(b) each of those materials satisfies the change in tariff classification mentioned in subsection (1), including by one or more applications of this subsection.