Common use of Value of Materials Clause in Contracts

Value of Materials. 1. Each Party shall provide that for the purpose of Articles 5.2 and 5.4, the value of a material is: (a) for a material imported by the producer of the good, the adjusted value of the material; (b) for a material acquired in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, i.e., in the same manner as for imported goods, with such reasonable modifications as may be required due to the absence of an importation; or (c) for a material that is self-produced, the sum of all expenses incurred in the production of the material, including general expenses, and an amount for profit equivalent to the profit added in the normal course of trade. 2. Each Party shall provide that the value of materials may be adjusted as follows: (a) for originating materials, the following expenses may be added to the value of the material if not included under paragraph 1: (i) the costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the Parties’ territories to the location of the producer; (ii) duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (b) for non-originating materials, where included under paragraph 1, the following expenses may be deducted from the value of the material: (i) the costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the Parties’ territories to the location of the producer; (ii) duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; (iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; (iv) the cost of processing incurred in the territory of a Party in the production of the non-originating material; and (v) the cost of originating materials used in the production of the non- originating material in the territory of a Party.

Value of Materials. 1. Each Party shall provide that for the purpose of Articles 5.2 calculating the regional value content of a good and 5.4for the purpose of applying the de minimis rule, the value of a material is: (a) for a material imported by the producer of the good, the adjusted value of the material; (b) for a material acquired in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, 15 and the corresponding interpretative notes of the Customs Valuation Agreement, i.e., Agreement in the same manner as for imported goodswith imports, with such reasonable modifications as may be required due to the absence of an importation; or (c) for a material that is self-produced, the sum of all expenses incurred in the production of the material, including general expenses, and an amount for profit equivalent to the profit added in the normal course of trade. 2. Each Party shall provide that the value of materials may be adjusted as follows: (a) for originating materials, the following expenses may be added to the value of the material if not included under paragraph 1: (i) the costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the Parties’ territories Parties to the location of the producer; (ii) duties, taxes, taxes and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, refundable or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (b) for non-originating materials, where included under paragraph 1, the following expenses may be deducted from the value of the material: (i) the costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the Parties’ territories Parties to the location of the producer; (ii) duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; (iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; (iv) the cost of processing incurred in the territory of a Party in the production of the non-originating material; and (v) the cost of originating materials used in the production of the non- non-originating material in the territory of a Party.

Value of Materials. 1. Each Party shall provide that for the purpose of Articles 5.2 and 5.4, the value of a material is: (a) for a material imported by the producer of the good, the adjusted value of the material; (b) for a material acquired in the territory where the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Customs Valuation Agreement, i.e., in the same manner as for imported goods, with such reasonable modifications as may be required due to the absence of an importation; or (c) for a material that is self-produced, the sum of all expenses incurred in the production of the material, including general expenses, and an amount for profit equivalent to the profit added in the normal course of trade. 2. Each Party shall provide that the value of materials may be adjusted as follows: (a) for originating materials, the following expenses may be added to the value of the material if not included under paragraph 1: (i) the costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the Parties’ territories to the location of the producer; (ii) duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; and (iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; and (b) for non-originating materials, where included under paragraph 1, the following expenses may be deducted from the value of the material: (i) the costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the Parties’ territories to the location of the producer; (ii) duties, taxes, and customs brokerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable; (iii) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products; (iv) the cost of processing incurred in the territory of a Party in the production of the non-non- originating material; and (v) the cost of originating materials used in the production of the non- non-originating material in the territory of a Party.