Page:United States Statutes at Large Volume 103 Part 3.djvu/609

 PROCLAMATION 5923—DEC. 14, 1988 103 STAT. 2677 0) bi making the determination required by subdivision (c)(vii)(H)(l) of this note and in making the same or a similar determination when required by Oie rules of subdivision (c](vii)(R] of this note, wrhere materials originating in the territory of Canada and/or the United States and materials obtained or produced in a third country are used or consumed together in the production of goods in the territory of Canada, the value of materials origi- nating in the territory of Canada and/or the United States shall be treated as such only to the extent that it is directly attributable to the goods under consideration. (K) In applying the rules set forth in subdivision (c](vii] of this note, a specific rule shall take precedence over a more general rule. [L] As used in subdivision (c)(vii)(B) of this note, the phrase "goods wholly obtained or pro- duced in the territory Canada and/or the United States" means— (1) mineral goods extracted in the territory of Canada and/or the United States, (2) goods harvested in the territory of Canada and/or the United States, (3) live animals born and raised in the territory of Canada and/or the United States, (4] fish, shellfish and other marine life taken from the sea by vessels registered or recorded with Canada and fiying its fiag, (5) goods produced on board factory ships from the marine life referred to in subparagraph (4) provided such factory ships are registered or recorded with Canada and fiy its fiag, (6] goods taken by Canada or a Canadian national or enterprise from the seabed or beneath the seabed outside territorial waters, provided that Canada has rights to exploit such seabed, (7) goods taken from space provided they are obtained by Canada or a Canadian national or enterprise and not processed in a third country, (8) waste and scrap derived from manufacturing operations and used goods, provided they were collected in the territory of Canada and/or the United States, and are fit only for the recovery of raw materials, and (9) goods produced in the territory of Canada and/or the United States exclusively from goods referred to in subparagraphs (1) to (8), inclusive, or from their derivatives, at any stage of production. (M) As used in subdivisions (c](vii)(H) and (R) of this note, the phrase "value of materials originating in the territory of Canada and/or the United States" means the aggregate of (1) the price paid by the producer of exported goods for materials originating in the territory of Canada and/or the United States or for materials imported from a third country used or consumed in the production of such originating materials, and (2) when not included in that price, the following costs related thereto— (I] freight, insurance, packing and all other costs incurred in transporting any of the materi- als referred to in subparagraph (1) to the location of the producer, (II] duties, taxes and brokerage fees on such materials paid in the territory of Canada and/ or the United States, (III] the cost of waste or spoilage 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 l(b] of article 8 of the Agreement on Implementation of article VII of the General Agreement on Tariffs and Trade. (N] As used in subdivision (c](vii](H] and (R] of this note, the phrase "value of the goods when exported to the territory of the United States" means the aggregate of— (1] the price paid by the producer for all materials, whether or not the materials originate in Canada and/or the United States, and, when not included in the price paid for the materi- als, the following costs related thereto— (I] freight, insurance, packing and all other costs incurred in transporting all materials to the location of the producer, (II] duties, taxes and brokerage fees on all materials paid in the territory of Canada and/or the United States, (III] the cost of waste or spoilage residting 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 all materials determined in accordance with subparagraph l(b] of article 8 of the Agreement on Implementation of article VII of the Gen- eral Agreement on Tariffs and Trade, and (2] the direct cost of processing or the direct cost of assembling the goods.

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