Page:United States Statutes at Large Volume 108 Part 6.djvu/580

 108 STAT. 5148 PROCLAMATION 6641—DEC. 15, 1993 Annex I (con.) -l i- the e^tporter or producer, during the course of a verification of the origin of the good, that the transaction value of the good or the value of any material used in the production of the good must be adjusted or is unacceptable under section 402 of the Tariff Act of 1930, as amended (19 U.S.C. 1401a), the exporter or producer may calculate the regional value content of the good on the basis of the net cost method set out in subdivision (c)(ii) of this note. (vi) For purposes of calculating the net cost of a good under subdivision (c)(ii) of this note, the producer of the good may-- (A) calculate the total cost incurred with respect to all goodis produced by that producer; subtract any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs and non-allowable interest costs that are included in the total cost of all such goods; and then reasonably allocate the resulting net cost of those goods to the good; (B) calculate the total cost incurred with respect to all goods produced by that producer; reasonably allocate the total cost to the good; and then subtract any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the good; or (C) reasonably allocate each cost that forms 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 non-allowable interest costs; provided that the allocation of all such costs is consistent with the provisions regarding the reasonable allocation of costs set out in regulations issued by the Secretary of the Treasury. The term "total cost* means all product costs, period costs and other costs incurred in the territory of Canada, Mexico and/or the United States. (vii) Except as provided in subdivision (c)(lx) of this note, the value of a material used in the production of a good shall-- (A) be the transaction value of the material determined in accordance with section 402(b) of the Tariff Act of 1930, as amended; or

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