Page:United States Statutes at Large Volume 107 Part 3.djvu/132

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107 STAT. 2070 PUBLIC LAW 103-182—DEC. 8, 1993 50 percent where the net cost method is used, and the good satisfies all other applicable requirements of this section, (b) REGIONAL VALUE-CONTENT.— (1) IN GENERAL.— Except as provided in paragraph (5), the regional value-content of a good shall be calculated, at the choice of the exporter or producer of the good, on the basis of— (A) the transaction value method described in paragraph (2); or (B) the net cost method described in paragraph (3). (2) TRANSACTION VALUE METHOD. — (A) IN GENERAL. — An exporter or producer may calculate the regional value-content of a good on the basis of the following transaction value method: TV-VNM RVC - X 100 TV (B) DEFiNrnoNS.—For purposes of subparagraph (A): (i) The term "RVC means the regional value-content, expressed as a percentage. (ii) The term "TV means the transaction value of the ^ood adjusted to a F.O.B. basis. (iii) The term *'VNM" means the value of nonoriginating materials used by the producer in the production of the good. (3) NET COST METHOD. — (A) IN GENERAL. — An exporter or producer may calculate the regional value-content of a good on the basis of the following net cost method: NC-VNM RVC = X 100 NC (B) DEFlNmONS.— For purposes of subparagraph (A): (i) The term **RVC** means the regional value-content, expressed as a percentage. (ii) The term "NC means the net cost of the good, (iii) The term "VNM" means the value of nonoriginating materials used by the producer in the production of the good. (4) VALUE OF NONORIGINATING »fATERIALS USED IN ORIGI- NATING MATERIALS.— Exce^t as provided in subsection (c)(l), and for a motor vehicle identined in subsection (c)(2) or a component identified in Annex 403.2 of the Agreement, the value of nonoriginating materials used by the producer in the production of a good shall not, for purposes of cfdculating the regional value-content of the good under paragraph (2) or (3), include the value of nonoriginating materials iised to produce originating materials that are subsequently used in the production of the good.