Automotive Goods. (i) For purposes of calculating the regional value content under the net cost method set out in subdivision (c)(ii) of this note for-- (A) a good that is a motor vehicle provided for in tariff items 8702.10.60 or 8702.90.60, or subheadings 8703.21 through 8703.90, inclusive, 8704.21 or 8704.31; or (B) a good provided for in the tariff items listed in Annex 403.1 where the good is subject to a regional value-content requirement and is for use as original equipment in the production of a good provided for in tariff items 8702.10.60 or 8702.90.60, or subheadings 8703.21 through 8703.90, inclusive, 8704.21 or 8704.31, the value of non-originating materials used by the producer in the production of the good shall be the sum of the values of non-originating materials, determined in accordance with subdivision (c)(vii) of this note at the time the non-originating materials are received by the first person in the territory of Canada, Mexico or the United States who takes title to them; that are imported from the outside the territories of Canada, Mexico and the United States under the tariff items listed in Annex 403.1 to the NAFTA and that are used in the production of the good or that are used in the production of any material used in the production of the good. (ii) For purposes of calculating the regional value content under the net cost method for a good that is a motor vehicle provided for in heading 8701, tariff items 8702.10.30 or 8702.90.30, subheadings 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or headings 8705 or 8706, or for a component identified in Annex 403.2 to the NAFTA for use as original equipment in the production of the motor vehicle, the value of non-originating materials used by the producer in the production of the good shall be the sum of-- (A) for each material used by the producer listed in Annex 403.2 to the NAFTA, whether or not produced by the producer, at the choice of the producer and determined in accordance with subdivision (c) of this note, either-- GN 12(d)(ii)(A)(1)--12(d)(v)(A)(1) (1) the value of such material that is non-originating, or (2) the value of non-originating materials used in the production of such material; and (B) the value of any other non-originating material used by the producer that is not listed in Annex 403.2 to the NAFTA, determined in accordance with subdivision (c) of this note. (iii) For purposes of calculating the regional value content of a motor vehicle identified in subdivision (d)(i) or (ii) of this note, or for any or all goods provided for in a tariff item listed in Annex 403.1 to the NAFTA, or a component or material identified in Annex 403.2 to the NAFTA, the producer may average its calculation over its fiscal year in accordance with section 202(c)(3) and (4) of the North American Free Trade Agreement Implementation Act of 1993. (iv) Notwithstanding subdivisions (r), (s) and (t) of this note, and except as provided in subdivision (d)(v) of this note, the regional value-content requirement shall be- (A) for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 56 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter,
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Samples: North American Free Trade Agreement, North American Free Trade Agreement, North American Free Trade Agreement
Automotive Goods. (i) For purposes of calculating the regional value content under the net cost method set out in subdivision (c)(ii) of this note for--
(A) a good that is a motor vehicle provided for in tariff items 8702.10.60 or 8702.90.60, or subheadings 8703.21 through 8703.90, inclusive, 8704.21 or 8704.31; or
(B) a good provided for in the tariff items listed in Annex 403.1 where the good is subject to a regional value-content requirement and is for use as original equipment in the production of a good provided for in tariff items 8702.10.60 or 8702.90.60, or subheadings 8703.21 through 8703.90, inclusive, 8704.21 or 8704.31, the value of non-originating materials used by the producer in the production of the good shall be the sum of the values of non-originating materials, determined in accordance with subdivision (c)(vii) of this note at the time the non-originating materials are received by the first person in the territory of Canada, Mexico or the United States who takes title to them; that are imported from the outside the territories of Canada, Mexico and the United States under the tariff items listed in Annex 403.1 to the NAFTA and that are used in the production of the good or that are used in the production of any material used in the production of the good.
(ii) For purposes of calculating the regional value content under the net cost method for a good that is a motor vehicle provided for in heading 8701, tariff items 8702.10.30 or 8702.90.30, subheadings 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or headings 8705 or 8706, or for a component identified in Annex 403.2 to the NAFTA for use as original equipment in the production of the motor vehicle, the value of non-originating materials used by the producer in the production of the good shall be the sum of--of-- General note 12(d)(ii) (con.):
(A) for each material used by the producer listed in Annex 403.2 to the NAFTA, whether or not produced by the producer, at the choice of the producer and determined in accordance with subdivision (c) of this note, either-- GN 12(d)(ii)(A)(1)--12(d)(v)(A)(1)either--
(1) the value of such material that is non-originating, or
(2) the value of non-originating materials used in the production of such material; and
(B) the value of any other non-originating material used by the producer that is not listed in Annex 403.2 to the NAFTA, determined in accordance with subdivision (c) of this note.
(iii) For purposes of calculating the regional value content of a motor vehicle identified in subdivision (d)(i) or (ii) of this note, or for any or all goods provided for in a tariff item listed in Annex 403.1 to the NAFTA, or a component or material identified in Annex 403.2 to the NAFTA, the producer may average its calculation over its fiscal year in accordance with section 202(c)(3) and (4) of the North American Free Trade Agreement Implementation Act of 1993.
(iv) Notwithstanding subdivisions (r), (s) and (t) of this note, and except as provided in subdivision (d)(v) of this note, the regional value-content requirement shall be-
(A) for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 56 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter,
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Samples: North American Free Trade Agreement, North American Free Trade Agreement, North American Free Trade Agreement
Automotive Goods. (i) 1. For purposes of calculating the regional value content under the net cost method set out in subdivision (c)(iiArticle 402(3) of this note for--for:
(Aa) a good that is a motor vehicle provided for in tariff items 8702.10.60 item 0000.00.xx or 8702.90.600000.00.xx (vehicles for the transport of 15 or fewer persons), or subheadings subheading 8703.21 through 8703.90, inclusive, 8704.21 or 8704.31; or
(B, or b) a good provided for in the tariff items provisions listed in Annex 403.1 where the good is subject to a regional value-content requirement and is for use as original equipment in the production of a good provided for in tariff items 8702.10.60 item 0000.00.xx or 8702.90.600000.00.xx (vehicles for the transport of 15 or fewer persons), or subheadings subheading 8702.xx, 8703.21 through 8703.90, inclusive, 8704.21 or 8704.31, the value of non-originating materials used by the producer in the production of the good shall be the sum of the values of non-originating materials, determined in accordance with subdivision (c)(viiArticle 402(9) of this note at the time the non-originating materials are received by the first person in the territory of Canada, Mexico or the United States a Party who takes title to them; , that are imported from the outside the territories of Canada, Mexico and the United States Parties under the tariff items provisions listed in Annex 403.1 to the NAFTA and that are used in the production of the good or that are used in the production of any material used in the production of the good.
(ii) 2. For purposes of calculating the regional value content under the net cost method set out in Article 402(3) for a good that is a motor vehicle provided for in heading 870187.01, tariff items 8702.10.30 item 8702.10.aa or 8702.90.308702.90.aa (vehicles for the transport of 16 or more persons), subheadings subheading 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or headings 8705 heading 87.05 or 870687.06, or for a component identified in Annex 403.2 to the NAFTA for use as original equipment in the production of the motor vehicle, the value of non-originating materials used by the producer in the production of the good shall be the sum of--of:
(Aa) for each material used by the producer listed in Annex 403.2 to the NAFTA403.2, whether or not produced by the producer, at the choice of the producer and determined in accordance with subdivision (c) of this noteArticle 402, either-- GN 12(d)(ii)(A)(1)--12(d)(v)(A)(1)either
(1i) the value of such material that is non-non originating, or
(2ii) the value of non-originating materials used in the production of such material; and
(Bb) the value of any other non-originating material used by the producer that is not listed in Annex 403.2 to the NAFTA403.2, determined in accordance with subdivision (c) of this noteArticle 402.
(iii) 3. For purposes of calculating the regional value content of a motor vehicle identified in subdivision (d)(iparagraph 1 or 2, the producer may average its calculation over its fiscal year, using any one of the following categories, on the basis of either all motor vehicles in the category or only those motor vehicles in the category that are exported to the territory of one or more of the other Parties:
a) or (iithe same model line of motor vehicles in the same class of vehicles produced in the same plant in the territory of a Party;
b) the same class of this notemotor vehicles produced in the same plant in the territory of a Party;
c) the same model line of motor vehicles produced in the territory of a Party; or
d) if applicable, or the basis set out in Annex 403.3.
4. For purposes of calculating the regional value content for any or all goods provided for in a tariff item provision listed in Annex 403.1 to the NAFTA403.1, or a component or material identified in Annex 403.2 to 403.2, produced in the NAFTAsame plant, the producer may of the good may:
a) average its calculation calculation
(i) over the fiscal year of the motor vehicle producer to whom the good is sold,
(ii) over any quarter or month, or
(iii) over its fiscal year year, if the good is sold as an aftermarket part;
b) calculate the average referred to in accordance subparagraph (a) separately for any or all goods sold to one or more motor vehicle producers; or
c) with section 202(c)(3) and (4) respect to any calculation under this paragraph, calculate separately those goods that are exported to the territory of one or more of the North American Free Trade Agreement Implementation Act of 1993Parties.
(iv) 5. Notwithstanding subdivisions (r), (s) and (t) of this noteAnnex 401, and except as provided in subdivision (d)(v) of this noteparagraph 6, the regional value-content requirement shall be-be:
(Aa) for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 56 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 62.5 percent under the net cost method, for
(i) a good that is a motor vehicle provided for in tariff item 0000.00.xx or 0000.00.xx (vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.90, 8704.21 or 8704.31, and (ii) a good provided for in heading 84.07 or 84.08, or subheading 8708.40, that is for use in a motor vehicle identified in subparagraph (a)(i); and
b) for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 55 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 60 percent under the net cost method, for
(i) a good that is a motor vehicle provided for in a tariff item 8702.10.aa or 8702.90.aa (vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.21 through 8703.90, 8704.21 or 8704.31, and (ii) a good provided for in heading 84.07 or 84.08 or subheading 8708.40 that is for use in a motor vehicle identified in subparagraph (b)(i), and (ii) except for a good identified in subparagraph (a)(ii) or provided for in subheading 8482.10 through 8482.80, 8483.20 or 8483.30, a good identified in Annex 403.1 that is subject to a regional value content requirement and that is for use in a motor vehicle identified in subparagraphs (a)(i) or (b)(i).
6. The regional value-content requirement for a motor vehicle identified in Article 403(1) or 403(2) shall be: a) 50 percent for five years after the date on which the first motor vehicle prototype is produced in a plant by a motor vehicle assembler, if
(i) it is a motor vehicle of a class, or marque, or, except for a motor vehicle identified in Article 403(2), size category and underbody, not previously produced by the motor vehicle assembler in the territory of any of the Parties,
(ii) the plant consists of a new building in which the motor vehicle is assembled, and
(iii) the plant contains substantially all new machinery that is used in the assembly of the motor vehicle; or
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Samples: North American Free Trade Agreement, North American Free Trade Agreement
Automotive Goods. (i) For purposes of calculating the regional value content under the net cost method set out in subdivision (c)(ii) of this note for--
(A) a good that is a motor vehicle provided for in tariff items 8702.10.60 or 8702.90.60, or subheadings 8703.21 through 8703.90, inclusive, 8704.21 or 8704.31; or
(B) a good provided for in the tariff items listed in Annex 403.1 where the good is subject to a regional value-value- content requirement and is for use as original equipment in the production of a good provided for in tariff items 8702.10.60 or 8702.90.60, or subheadings 8703.21 through 8703.90, inclusive, 8704.21 or 8704.31, the value of non-originating materials used by the producer in the production of the good shall be the sum of the values of non-originating materials, determined in accordance with subdivision (c)(vii) of this note at the time the non-originating materials are received by the first person in the territory of Canada, Mexico or the United States who takes title to them; that are imported from the outside the territories of Canada, Mexico and the United States under the tariff items listed in Annex 403.1 to the NAFTA and that are used in the production of the good or that are used in the production of any material used in the production of the good.
(ii) For purposes of calculating the regional value content under the net cost method for a good that is a motor vehicle provided for in heading 8701, tariff items 8702.10.30 or 8702.90.30, subheadings 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or headings 8705 or 8706, or for a component identified in Annex 403.2 to the NAFTA for use as original equipment in the production of the motor vehicle, the value of non-originating materials used by the producer in the production of the good shall be the sum of--
(A) for each material used by the producer listed in Annex 403.2 to the NAFTA, whether or not produced by the producer, at the choice of the producer and determined in accordance with subdivision (c) of this note, either-- GN 12(d)(ii)(A)(1)--12(d)(v)(A)(1)either--
(1) the value of such material that is non-originating, or
(2) the value of non-originating materials used in the production of such material; and
(B) the value of any other non-originating material used by the producer that is not listed in Annex 403.2 to the NAFTA, determined in accordance with subdivision (c) of this note.
(iii) For purposes of calculating the regional value content of a motor vehicle identified in subdivision (d)(i) or (ii) of this note, or for any or all goods provided for in a tariff item listed in Annex 403.1 to the NAFTA, or a component or material identified in Annex 403.2 to the NAFTA, the producer may average its calculation over its fiscal year in accordance with section 202(c)(3) and (4) of the North American Free Trade Agreement Implementation Act of 1993.
(iv) Notwithstanding subdivisions (r), (s) and (t) of this note, and except as provided in subdivision (d)(v) of this note, the regional value-content requirement shall be-be--
(A) for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 56 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter,, 62.5 percent under the net cost method, for--
(1) a good that is a motor vehicle provided for in tariff items 8702.10.60 or 8702.90.60; subheadings 8703.21 through 8703.90, inclusive; or subheadings 8704.21 or 8704.31, and
(2) a good provided for in headings 8407 or 8408 or subheading 8708.40, that is for use in a motor vehicle identified in subdivision (d)(iv)(A)(1); and
(B) for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 55 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 60 percent under the net cost method, for--
(1) a good that is a motor vehicle provided for in heading 8701, tariff items 8702.10.30 or 8702.90.30, subheadings 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or headings 8705 or 8706;
(2) a good provided for in headings 8407 or 8408 or subheading 8708.40 that is for use in a motor vehicle identified in subdivision (d)(iv)(B)(1); and
(3) except for a good identified in subdivision (d)(iv)(A)(2) or provided for in subheadings 8482.10 through 8482.80, inclusive, 8483.20 or 8483.30, a good identified in Annex 403.1 to the NAFTA that is subject to a regional value-content requirement and that is for use in a motor vehicle identified in subdivision (d)(iv)(A)(1) or (d)(iv)(B)(1).
(v) The regional value-content requirement for a motor vehicle identified in subdivision (d)(i) or (ii) shall be--
(A) 50 percent for five years after the date on which the first motor vehicle prototype is produced in a plant by a motor vehicle assembler, if--
(1) it is a motor vehicle of a class, or marque, or, except for a motor vehicle identified in subdivision (d)(ii), size category and underbody, not previously produced by the motor vehicle assembler in the territory of Canada, Mexico and/or the United States;
(2) the plant consists of a new building in which the motor vehicle is assembled; and
(3) the plant contains substantially all new machinery that is used in the country of assembly of the motor vehicle; or
(B) 50 percent for two years after the date on which the first motor vehicle prototype is produced at a plant following a refit, if it is a different motor vehicle of a class, or marque, or, except for a motor vehicle identified in subdivision (d)(ii), size category and underbody, than was assembled by the motor vehicle assembler in the plant before the refit. GN p. 32 NAFTA
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