Front End Wheel Loader Remission Order — 2
2 In this Order, Canadian value added means (a) in the case of front end wheel loaders produced in Canada, the aggregate of the following costs to the manufacturer of producing front end wheel loaders and the following allowances: (i) the cost of parts produced in Canada and the cost of materials, to the extent that such materials are of Canadian origin, where the parts and materials are incorporated in the front end wheel loaders at the factory of the manufacturer in Canada, other than the cost of parts produced in Canada or the cost of materials, to the extent that such materials are of Canadian origin, where the parts and materials have been exported from Canada and subsequently imported into Canada as parts or materials, (ii) transportation costs, including insurance charges, incurred in transporting parts and materials from a Canadian supplier or frontier port of entry to the factory of the manufacturer in Canada for incorporation into the front end wheel loaders, to the extent that such costs are not included under subparagraph (i), (iii) that part of the following costs that are reasonably attributable to the production of the front end wheel loaders: (A) wages paid for direct production labour in Canada, (B) wages paid for indirect production and non-production labour in Canada, (C) materials used in the production operation but not incorporated in the final product, (D) light, heat, power and water, (E) workmen’s compensation, unemployment insurance and group insurance premiums, pension contributions and similar expenses incurred in respect of labour referred to in clauses (A) and (B), (F) taxes on land and buildings in Canada, (G) fire and other insurance premiums in respect of production inventories and the production plant and its equipment that are paid to a company authorized by law to carry on a business in Canada, (H) rent for factory premises paid to a beneficial owner in Canada, (I) maintenance and repairs carried out in Canada to buildings, machinery and equipment used for production purposes, (J) tools, dies, jigs, fixtures and other similar plant equipment items of a non-permanent character that have been manufactured in Canada, (K) engineering services, experimental work and product development work executed in Canada, and (L) miscellaneous factory expenses, (iv) administrative and general expenses incurred in Canada that are reasonably attributable to the production of the front end wheel loaders, (v) depreciation in respect of machinery and permanent plant equipment, to the extent that such depreciation is reasonably attributable to the production of the front end wheel loaders, and (vi) a capital cost allowance of five per cent of the total capital outlay incurred by the manufacturer for land and buildings in Canada owned by the manufacturer and used by the manufacturer in the production of front end wheel loaders, to the extent that such allowance is reasonably attributable to the production of the front end wheel loaders, and (b) in the case of parts produced in Canada, the aggregate of those costs of producing the parts and those allowances that would be included in the calculation of Canadian value added if the parts were front end wheel loaders; ( valeur canadienne ajoutée ) cost of materials means (a) where they are acquired by a manufacturer from a related person, the cost to that person of the materials to the extent that they are of Canadian origin, or (b) where they are acquired by a manufacturer from any person other than one described in paragraph (a), the price paid by the manufacturer for the materials minus the duty paid value of imported goods used in the production thereof and foreign charges applicable thereto; ( coûts des matières ) cost of parts produced in Canada means (a) where they are acquired by a manufacturer from a related person, the Canadian value added of the parts, or (b) where they are acquired by a manufacturer from any person other than one described in paragraph (a),