Page:United States Statutes at Large Volume 102 Part 2.djvu/856

 102 STAT. 1860

PUBLIC LAW 100-449—SEPT. 28, 1988 (G) goods taken from space, provided they are obtained by a Party or a person of a Party and not processed in a third country; (H) waste and scrap derived from manufacturing operations and used goods, provided they were collected in the territory of either Party or both Parties and are fit only for the recovery of raw materials; and (I) goods produced in the territory of either Party or both Parties exclusively from goods referred to in subparagraphs (A) to (H) inclusive or from their derivatives, at any stage of production. (5) The term "materials" means goods, other than those included as part of the direct cost of processing or assembling, used or consumed in the production of other goods. (6) The term "Party" means Canada or the United States. (7) The term "territory" means— (A) with respect to Canada, the territory to which its customs laws apply, including any areas beyond the territorial seas of Canada within which, in accordance with international law and its domestic laws, Canada may exercise rights with respect to the seabed and subsoil and their natural resources; and (B) with respect to the United States— (i) the customs territory of the United States, which includes 4he fifty States, the District of Columbia and the Commonwealth of Puerto Rico, (ii) the foreign trade zones located in the United States, and the Commonwealth of Puerto Rico, and (iii) any area beyond the territorial seas of the United States within which, in accordance with international law and its domestic laws, the United States may exercise rights with respect to the seabed and subsoU and their natural resources. (8) The term "third country" means any country other than Canada or the United States or any territory not a part of the territory of either. (9) The term "value of materials originating in the territory of eitiier Party or both Parties" means the aggregate of— (A) the price paid by the producer of an exported good for materials originating in the territory of either Party or both Parties or for materials imported from a third country used or consumed in the production of such originating materials; and (B) when not included in that price, the following costs related thereto— (i) fi*eight, insurance, packing, and all other costs incurred in transporting any of the materials referred to in subparagraph (A) to the location of the producer; (ii) duties, taxes, and brokerage fees on such materials paid in the territory of ei^er Party or both Parties; "^ (iii) the cost of waste or spoUage resulting from the use or consumption of such materials, less the value of renewable scrap or byproduct; and (iv) the value of goods and services relating to such materials determined in accordance with subparagraph 1(b) of article 8 of the Agreement on Implementation of

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