CUSMA Rules of Origin Regulations — 14
Roll-up of originating materials 14 (1) The VNM used by the producer in the production of a passenger vehicle, light truck and parts thereof must not, for the purposes of calculating the RVC of the good, include the VNM used to produce originating materials that are subsequently used in the production of the good. For greater certainty, if the production undertaken on non-originating materials results in the production of a good that qualifies as originating, no account shall be taken of the non-originating material contained therein if that good is used in the subsequent production of another good. Core parts listed in Table A.1 (2) A part listed in Table A.1 that is for use as original equipment in the production of a passenger vehicle or light truck, except for batteries of subheading 8507.60 that are used as the primary source of electrical power for the propulsion of an electric passenger vehicle or an electric light truck, is originating only if it satisfies the RVC requirement in this section, section 13 or Schedule 1. Batteries (3) A battery of subheading 8507.60 that is used as the primary source of electrical power for the propulsion of an electric passenger vehicle or an electric light truck is originating if it meets the applicable requirements set out in this section or Schedule 1. Passenger vehicle or light truck — parts (4) In addition to other applicable requirements set out in these Regulations, a passenger vehicle or light truck is only originating if the parts listed in column 1 of Table A.2 used in its production are originating. The VNM for such parts must be calculated in accordance with subsections (7) and (8), or, at the choice of the vehicle producer or exporter, subsections (9) to (11). The net cost of a part must be calculated in accordance with section 7 without regard to the VNM calculation method chosen. RVC requirement — passenger vehicle or light truck (5) Except for an advanced battery of subheading 8507.60, a part listed in column 1 of Table A.2 that is for use in a passenger vehicle or light truck must meet the RVC requirement of section 13 or Schedule 1 to be considered originating. Advanced batteries (6) An advanced battery of subheading 8507.60 that is for use in a passenger vehicle or light truck is originating if it meets the applicable change in tariff classification or RVC requirements set out in Schedule 1. VNM determination (7) For the purpose of subsections (4) to (6), when calculating the RVC of a part listed in column 1 of Table A.2, the VNM must be determined, at the choice of the vehicle producer or exporter, by taking into consideration (a) the VNM used in the production of the part; or (b) the value of non-originating components that are listed in column 2 of Table A.2 that are used in the production of the part. Materials not listed in column 2 (8) For the purposes of an RVC calculation for a good listed in column 1 of Table A.2, based on paragraph (7)(b), any non-originating materials used in the production of the good that are not listed in column 2 of Table A.2 may be disregarded. For greater certainty, any non-originating parts listed in column 2 of Table A.2 must be included in the VNM calculation and any parts not listed in column 2 of Table A.2 — or materials or components used to produce such parts — are not to be part of the VNM calculation. Non-application (9) Subsections (7) and (8) do not apply when calculating the RVC of a part listed in column 1 of Table A.2 traded on its own. The rules for such parts are listed in section 13 or Schedule 1. Super-core part (10) For the purpose of subsections (4) to (6) and as an alternative to determining the VNM based on the method in subsection (7), the RVC of the parts listed in column 1 of Table A.2 may be determined, at the choice of the vehicle producer or exporter, by treating these parts as a single part, which may be referred to as a super-core part, using the sum of the net cost of each part listed under column 1 of Ta