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Annex 2: Meaning of saleable

The meaning of saleable will be the same as defined under the Carbon Pollution Reduction Scheme Regulations 2009:

  1. The concept of a saleable product, or a product which is of saleable quality, is intended to have its ordinary meaning as understood by participants in the relevant market, subject to subclauses (2) to (5).
  2. A product is taken to be saleable or of saleable quality if it is produced to a level at which it would ordinarily be considered by participants in the relevant market:
    1. to be the output of the process; and
    2. 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.

      Outputs that are saleable, or 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 saleable or of saleable quality.
  3. A sub-standard product which is discarded is taken not to be saleable or of saleable quality.
  4. A product which is recycled back into the same emissions-intensive trade-exposed activity to produce a new output may be taken to be saleable or of saleable quality only once.

    Examples
    1. Metal which is re-melted in the same equipment in which it was produced.
    2. Paper which is re-inputted into a paper making process.
  5. Material which is scrapped or lost before it is packaged as a product that is saleable or of saleable quality:
    1. is taken not to be saleable or of saleable quality; and
    2. is taken not to be included in an amount of product that is saleable or of saleable quality that is to be counted for the basis for allocation.