Intermediate Materials. 1. For the purposes of determining the regional valuecontent of a good under Article 23, the producer of thegood may designate as an intermediate material, any self-produced material used in the production of the good. 2. Where an intermediate material is subject to aregional value content requirement under subparagraph 1(d)of Article 22 or Annex 4, the value of the intermediatematerial shall be: (a) the total cost incurred with respect to all goodsproduced by the producer of the good which may bereasonably allocated to such intermediatematerial, in accordance with the UniformRegulations referred to in Article 10; or (b) the sum of each cost which are part of the totalcost incurred with respect to such intermediatematerial, in accordance with the UniformRegulations referred to in Article 10. In this case, the regional value content of suchmaterial shall be not less than the percentage set out inAnnex 4 minus 5 percent.
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