22CMeaning of saleable quality

#### 22C Meaning of saleable quality (1) In this Part and Schedule 6, saleable quality is intended to have its ordinary meaning as understood by participants in the relevant market, subject to subregulations (2) to (5). (2) A product is taken to be of saleable quality if it is produced to a level at which it would ordinarily be considered by participants in the relevant market: (a) to be the output of a process carried on as part of an emissions‑intensive trade‑exposed activity; and (b) to have a commercial value as that output. > Note: On this basis, the output may meet particular industry standards or specifications (either general specifications or those set by particular customers). It may also meet internal standards by which it can be used by the firm as part of another process conducted by the firm. > Note: Outputs that are of saleable quality do not need to be sold in the year of production. Therefore, an output that is produced and entered on an inventory can be of saleable quality. (3) A sub‑standard product that is discarded is taken not to be of saleable quality. (4) A product that is recycled back into the same emissions‑intensive trade‑exposed activity to produce a new output is taken to be of saleable quality only once. > Note: Examples: > Note: 1 Metal that is re‑melted in the same equipment in which it was produced. > Note: 2 Paper that is re‑inputted into a paper making process. (5) Material that is scrapped or lost before it is packaged as a product that is of saleable quality: (a) is taken not to be of saleable quality; and (b) is taken not to be included in an amount of product that is of saleable quality that is to be counted for the purpose of calculating a liable entity’s exemption.