Common use of Value Test Clause in Contracts

Value Test. 1. Except as provided in paragraphs 2 and 3, where Annex 3-A specifies a value test to determine whether a good is originating, the good is originating provided that the value of non-originating materials used in the production of the good does not exceed a given percentage of the transaction value or ex-works price of the good as specified in Annex 3-A. 2. For the purposes of a good of headings 87.01 through 87.08, at the choice of an exporter or a producer of such goods, the good is originating provided that the value of non-originating materials used in the production of the good does not exceed the given percentage of either the transaction value or ex-works price of the good, or the net cost of the good. 3. Notwithstanding paragraph 2, for the purposes of a good of headings 87.01 through 87.06, at the choice of an exporter or a producer of such goods, the good is originating provided that the value of originating materials used in the production of the good is not less than a given percentage of the transaction value or ex-works price of the good. 4. For the purposes of calculating the net cost of a good under paragraph 2, the producer of the good may: (a) calculate the total cost incurred with respect to all goods 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 those 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. 5. For the purposes of calculating the net cost of a good of headings 87.01 through 87.05 under paragraph 4, 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 the other Party: (a) the 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 model line of motor 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; (d) the same class of motor vehicles produced in the same plant in the territory of a Party; or (e) any other category as the Parties may agree. 6. For the purposes of calculating the net cost under paragraph 4 for a good of headings 87.06 through 87.08 produced in the same plant, the producer may: (a) average its calculation, (i) over the fiscal year of the motor vehicle producer to whom the good is sold; (ii) over any quarter or month, provided that the good was produced during the quarter or month forming the basis for the calculation; or (iii) over the automotive material producer’s fiscal year; (b) calculate the average referred to in subparagraph (a) separately for any or all goods sold to one or more motor vehicle producers; or (c) calculate the average in subparagraph (a) or (b) separately for those goods that are exported to the territory of the other Party.

Value Test. 1. Except as provided in paragraphs 2 and 3, where Annex 3-A specifies a value test to determine whether a good is originating, the good is originating provided that the value of non-originating materials used in the production of the good does not exceed a given percentage of the transaction value or ex-works price of the good as specified in Annex 3-A. 2. For the purposes of a good of headings 87.01 through 87.08, at the choice of an exporter or a producer of such goods, the good is originating provided that the value of non-originating materials used in the production of the good does not exceed the given percentage of either the transaction value or ex-works price of the good, or the net cost of the good. 3. Notwithstanding paragraph 2, for the purposes of a good of headings 87.01 through 87.06, at the choice of an exporter or a producer of such goods, the good is originating provided that the value of originating materials used in the production of the good is not less than a given percentage of the transaction value or ex-works price of the good. 4. For the purposes of calculating the net cost of a good under paragraph 2, the producer of the good may: (a) calculate the total cost incurred with respect to all goods 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 those 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 (b)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. 5. For the purposes of calculating the net cost of a good of headings 87.01 through 87.05 under paragraph 4, 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 the other Party: (a) the 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 model line of motor 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; (d) the same class of motor vehicles produced in the same plant in the territory of a Party; or (e) any other category as the Parties may agree. 6. For the purposes of calculating the net cost under paragraph 4 for a good of headings 87.06 through 87.08 produced in the same plant, the producer may: (a) average its calculation, (i) over the fiscal year of the motor vehicle producer to whom the good is sold; (ii) over any quarter or month, provided that the good was produced during the quarter or month forming the basis for the calculation; or (iii) over the automotive material producer’s fiscal year; (b) calculate the average referred to in subparagraph (a) separately for any or all goods sold to one or more motor vehicle producers; or (c) calculate the average in subparagraph (a) or (b) separately for those goods that are exported to the territory of the other Party.through

Value Test. 1. Except as provided in paragraphs 2 and 3paragraph 2, where the applicable rule of origin in Annex 3-A 301 for the tariff provision under which a good is classified specifies a value test to determine whether a good is originatingtest, the good is originating value test shall be satisfied provided that the value of non-originating materials used in the production of the good does not exceed a given percentage of the transaction value or ex-works price of the good as specified in Annex 3-A. 2. For the purposes of a good of headings 87.01 through 87.08, at the choice of an exporter or a producer of such goods, the good is originating provided that the value of non-originating materials used in the production of the good does not exceed the given percentage of either the transaction value or ex-works price of the good, or good set out in the net cost rule of the origin applicable to that good. 32. Notwithstanding paragraph 2, for the For purposes of a good of headings heading 87.01 through 87.0687.08, at the choice of an exporter or a producer of such goodsgood, the good is originating value test shall be satisfied provided that the value of non-originating materials used in the production of the good is does not less than a given exceed the percentage of either the transaction value or exthe net cost of the good set out in the rule of origin applicable to that good. 3. The value of non-works price originating materials used by the producer in the production of a good shall not, for purposes of satisfying the value test under either paragraph 1 or 2, include the value of non-originating materials used to produce originating materials that are subsequently used in the production of the good. 4. For purposes of paragraph 3, "the value of non-originating materials" in paragraphs 1 and 2 does not include: (a) the value of any non-originating materials used by another producer to produce an originating material that is subsequently acquired and used in the production of the good by the producer of the good; or (b) the value of non-originating materials used by the producer to produce an originating intermediate material. 5. For purposes of calculating the net cost of a good under paragraph 2, the producer of the good may: (a) calculate the total cost incurred with respect to all goods produced by that producer, subtract any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and as well as non-allowable interest costs that are included in the total cost of all those such goods, and then reasonably allocate the resulting net cost of those goods to the good; (b) Calculate 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. 56. For the purposes of calculating the net cost of a good of headings 87.01 through 87.05 under paragraph 42, 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 the other Party: (a) the 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 model line of motor 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; (d) the same class of motor vehicles produced in the same plant in the territory of a Party; or or (e) any other category as the Parties may agree. 67. For the purposes of calculating the net cost under paragraph 4 for 2 with respect to a good of headings 87.06 through 87.08 produced in the same plant, the producer may: (a) average its 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 the automotive materials producer's fiscal year, provided that the good was produced during the fiscal year, quarter or month forming the basis for the calculation; or (iii) over the automotive material producer’s fiscal year; (b) calculate the average referred to in subparagraph (a) separately for any or all goods sold to one or more motor vehicle producers; or (c) calculate the average in subparagraph (a) or (b) separately for those goods that are exported to the territory of the other Party.

Value Test. 1. Except as provided in paragraphs 2 and 3paragraph 2, where the applicable rule of origin in Annex 3-A 301 for the tariff provision under which a good is classified specifies a value test to determine whether a good is originatingtest, the good is originating value test shall be satisfied provided that the value of non-originating materials used in the production of the good does not exceed a given percentage of the transaction value or ex-works price of the good as specified in Annex 3-A.good. 2. For the purposes of a good of classified under headings 87.01 through 87.08, at the choice of an exporter or a producer of such goodsgood, the good is originating value test shall be satisfied provided that the value of non-originating materials used in the production of the good does not exceed the a given percentage of either the transaction value or ex-works price of the good, or the net cost of the good. 3. Notwithstanding paragraph 2, for The value of non-originating materials used by the purposes producer in the production of a good shall not, for purposes of headings 87.01 through 87.06satisfying the value test under either paragraph 1 or 2, at the choice of an exporter or a producer of such goods, the good is originating provided that include the value of non-originating materials used to produce originating materials that are subsequently used in the production of the good is not less than a given percentage of the transaction value or ex-works price of the good. 4. For the purposes of calculating the net cost of a good under paragraph 2, the producer of the good may: (a) calculate the total cost incurred with respect to all goods produced by that producer, subtract any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and as well as non-allowable interest costs that are included in the total cost of all those such goods, and then reasonably allocate the resulting net cost of those goods to the good; (b) Calculate 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. 5(1) Paragraph 3 applies to intermediate materials. The "value of non-originating materials" in paragraphs 1 and 2 shall not include: (i) the value of any non-originating materials used by another producer to produce an originating material that is subsequently acquired and used in the production of the good by the producer of the good, or (ii)the value of non-originating materials used by the producer to produce an originating intermediate material. (2) For greater certainty, sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs included in the purposes value of calculating materials used in the production of the good shall not be subtracted out of the net cost of a good of headings 87.01 through 87.05 in the calculation under paragraph 4, 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 the other Party: (a) the 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 model line of motor 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; (d) the same class of motor vehicles produced in the same plant in the territory of a Party; or (e) any other category as the Parties may agree2. 6. For the purposes of calculating the net cost under paragraph 4 for a good of headings 87.06 through 87.08 produced in the same plant, the producer may: (a) average its calculation, (i) over the fiscal year of the motor vehicle producer to whom the good is sold; (ii) over any quarter or month, provided that the good was produced during the quarter or month forming the basis for the calculation; or (iii) over the automotive material producer’s fiscal year; (b) calculate the average referred to in subparagraph (a) separately for any or all goods sold to one or more motor vehicle producers; or (c) calculate the average in subparagraph (a) or (b) separately for those goods that are exported to the territory of the other Party.