Page:United States Statutes at Large Volume 107 Part 3.djvu/134

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107 STAT. 2072 PUBLIC LAW 103-182—DEC. 8, 1993 such goods, and reasonably allocating the resulting net cost of those goods to the good; (B) calculating the total cost incurred with respect to all goods produced by that producer, reasonably allocating the total cost to the good, and subtracting any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and nonallowable interest costs that are included in the portion of the total cost allocated to the good; or (C) reasonably allocating each cost that is part of the total cost incurred with respect to the good so that the aggregate of these costs does not include any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, or nonallowable interest costs. (9) VALUE OF MATERIAL USED IN PRODUCTION.— Except as provided in paragraph (11), the value of a material used in the production of a good— (A) shall— (i) be the transaction value of the material determined in accordance with Article 1 of the Customs Valuation Code; or (ii) in the event that there is no transaction value or the transaction value of the material is unacceptable under Article 1 of the Customs Valuation Code, be determined in accordance with Articles 2 through 7 of the Customs Valuation Code; and (B) if not included under clause (i) or (ii) of subparagraph (A), shall include— (i) freight, insurance, packing, and all other costs incurred in transporting the material to the location of the producer; (ii) duties, taxes, and customs brokerage fees paid on the material in the territory of one or more of the NAFTA countries; and (iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-product. (10) INTERMEDIATE MATERIAL.—Except for goods described in subsection (c)(D, any self-produced material, other than a component identified in Annex 403.2 of the Agreement, that is used in the production of a good may be designated by the producer of the good as an intermediate material for the purpose of calculating the regional value-content of the good under paragraph (2) or (3); provided that if the intermemate material is subject to a re^onal value-content requirement, no other self-produced material that is subject to a regional value-content requirement and is used in the production of the intermediate material may be designated by the producer as an intermediate material. (11) VALUE OF INTERMEDIATE MATERIAL. —The value of an intermediate material shall be— (A) the total cost incurred with respect to all goods produced by the producer of the good that can be reasonably allocated to the intermediate material; or (B) the aggregate of each cost that is part of the total cost incurred wiui respect to the intermediate material