GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in a CUSMA country, produces Good A that is subject to a regional value content requirement. The producer chooses to calculate the regional value content of that good using the net cost method and averages the calculation over the producer’s fiscal year under subsection (15). Producer A determines that during that fiscal year Producer A incurred a gain on foreign currency conversion of $10,000 and a loss on foreign currency conversion of $8,000, resulting in a net gain of $2,000. Producer A also determines that $7,000 of the gain on foreign currency conversion and $6,000 of the loss on foreign currency conversion is related to the purchase of non-originating materials used in the production of Good A and $3,000 of the gain on foreign currency conversion and $2,000 of the loss on foreign currency conversion is not related to the production of Good A. The producer determines that the total cost of Good A is $45,000 before deducting the $1,000 net gain on foreign currency conversion related to the production of Good A. The total cost of Good A is therefore $44,000. That $1,000 net gain is not included in the value of non-originating materials under subsection 8 (1).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 10 (subsection (12)): Given the same facts as in Example 9, except that Producer A determines that $6,000 of the gain on foreign currency conversion and $7,000 of the loss on foreign currency conversion is related to the purchase of non-originating materials used in the production of Good A the total cost of Good A is $45,000, which includes the $1,000 net loss on foreign currency conversion related to the production of Good A. That $1,000 net loss is not included in the value of non-originating materials under subsection 8 (1).
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Given the same facts as in Example 9, except that Producer A determines that $6,000 of the gain on foreign currency conversion and $7,000 of the loss on foreign currency conversion is related to the purchase of non-originating materials used in the production of Good A the total cost of Good A is $45,000, which includes the $1,000 net loss on foreign currency conversion related to the production of Good A. That $1,000 net loss is not included in the value of non-originating materials under subsection 8 (1).
CUSMA Rules of Origin Regulations — 8
her tools to clean out machines; and (i) electrical cords and power bars for use with electronic goods. Example 8: Value of indirect materials that are assists Producer A, located in a CUSMA country, produces a well-water pump that is subject to a regional value content requirement. The producer chooses to calculate the regional value content of that good using the net cost method. Producer A buys a mould-injected plastic water flow sensor from Producer B, located in the same CUSMA country, and uses it in the production of the pump. Producer A provides to Producer B, at no charge, moulds to be used in the production of the water flow sensor. The moulds have a value of $100 which is expensed in the current year by Producer A. The water flow sensor is subject to a regional value content requirement which Producer B chooses to calculate using the net cost method. For the purpose of determining the value of non-originating materials in order to calculate the regional value content of the water flow sensor, the moulds are considered to be an originating material because they are an indirect material. However, under subsection (13) they have a value of nil because the cost of the moulds with respect to the water flow sensor is not recorded on the books of Producer B. It is determined that the water flow sensor is a non-originating material. The cost of the moulds that is recorded on the books of Producer A is expensed in the current year. Under section 4 of Schedule 6, the value of the moulds (see subparagraph 4(1)(b)(ii) of Schedule 6) must be included in the value of the water flow sensor by Producer A when calculating the regional value content of the well-water pump. The cost of the moulds, although recorded on the books of producer A, cannot be included as a separate cost in the net cost of the well-water pump because it is already included in the value of the water flow sensor. The entire cost of the water flow sensor, which includes the cost of the moulds, is included in the value of non-originating materials for the purposes of calculating the regional value content of the well-water pump.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 1 (subsection (4)): Transaction value not determined in a manner consistent with Schedule 6 Producer A, located in CUSMA country A, imports a bicycle chainring into CUSMA country A. Producer A purchased the chainring from a middleman located in CUSMA country B. The middleman purchased the chainring from a manufacturer located in CUSMA country B. Under the laws of CUSMA country A that implement the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade, 1994, the customs value of the chainring was based on the price actually paid or payable by the middleman to the manufacturer. Producer A uses the chainring to produce a bicycle and exports the bicycle to CUSMA country C. The bicycle is subject to a regional value content requirement. Under subsection 3(1) of Schedule 6, the price actually paid or payable is the total payment made or to be made by the producer to or for the benefit of the seller of the material. Section 1 of that Schedule defines “producer” and “seller” for the purposes of that Schedule. A producer is the person who uses the material in the production of a good that is subject to a regional value content requirement. A seller is the person who sells the material being valued to the producer. The transaction value of the chainring was not determined in a manner consistent with Schedule 6 because it was based on the price actually paid or payable by the middleman to the manufacturer, rather than on the price actually paid or payable by Producer A to the middleman. Thus, subsection (4) applies and the chainring is valued in accordance with Schedule 6.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Producer A, located in CUSMA country A, imports a bicycle chainring into CUSMA country A. Producer A purchased the chainring from a middleman located in CUSMA country B. The middleman purchased the chainring from a manufacturer located in CUSMA country B. Under the laws of CUSMA country A that implement the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade, 1994, the customs value of the chainring was based on the price actually paid or payable by the middleman to the manufacturer. Producer A uses the chainring to produce a bicycle and exports the bicycle to CUSMA country C. The bicycle is subject to a regional value content requirement.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Under subsection 3(1) of Schedule 6, the price actually paid or payable is the total payment made or to be made by the producer to or for the benefit of the seller of the material. Section 1 of that Schedule defines “producer” and “seller” for the purposes of that Schedule. A producer is the person who uses the material in the production of a good that is subject to a regional value content requirement. A seller is the person who sells the material being valued to the producer.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The transaction value of the chainring was not determined in a manner consistent with Schedule 6 because it was based on the price actually paid or payable by the middleman to the manufacturer, rather than on the price actually paid or payable by Producer A to the middleman. Thus, subsection (4) applies and the chainring is valued in accordance with Schedule 6.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Example 2 (subsection (7)): Value of intermediate materials A producer located in a CUSMA country produces a bicycle that is subject to a regional value content requirement under subsection 3 (2). The producer also produces a chainring that is used in the production of the bicycle. Both originating materials and non-originating materials are used in the production of the chainring. The chainring is subject to a change in tariff classification requirement under subsection 3 (2). The costs to produce the chainring are the following: Product costs: Value of originating materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50 Period costs (including $0.30 in royalties): $0.50 Other costs: $0.10 Total cost of the chainring: $10.60 The producer designates the chainring as an intermediate material and determines that, because all of the non-originating materials that are used in the production of the chainring undergo an applicable change in tariff classification set out in Schedule 1, the chainring would, under subsection 3 (2) qualify as an originating material. The cost of the non-originating materials used in the production of the chainring is therefore not included in the value of non-originating materials that are used in the production of the bicycle for the purpose of determining the regional value content of the bicycle. Because the chainring is designated as an intermediate material, the total cost of the chainring, which is $10.60, is treated as the cost of originating materials for the purpose of calculating the regional value content of the bicycle. The total cost of the bicycle is determined in accordance with the following figures: Product costs: Value of originating materials - intermediate materials $10.60 - other materials $3.00 Value of non-originating materials $5.50 Other product costs: $6.50 Period costs: $2.50 Other costs: $0.10 Total cost of the bicycle: $28.20
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
A producer located in a CUSMA country produces a bicycle that is subject to a regional value content requirement under subsection 3 (2). The producer also produces a chainring that is used in the production of the bicycle. Both originating materials and non-originating materials are used in the production of the chainring. The chainring is subject to a change in tariff classification requirement under subsection 3 (2). The costs to produce the chainring are the following: Product costs: Value of originating materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50 Period costs (including $0.30 in royalties): $0.50 Other costs: $0.10 Total cost of the chainring: $10.60
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Product costs: Value of originating materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Value of non-originating materials $7.50
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Period costs (including $0.30 in royalties): $0.50
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The producer designates the chainring as an intermediate material and determines that, because all of the non-originating materials that are used in the production of the chainring undergo an applicable change in tariff classification set out in Schedule 1, the chainring would, under subsection 3 (2) qualify as an originating material. The cost of the non-originating materials used in the production of the chainring is therefore not included in the value of non-originating materials that are used in the production of the bicycle for the purpose of determining the regional value content of the bicycle. Because the chainring is designated as an intermediate material, the total cost of the chainring, which is $10.60, is treated as the cost of originating materials for the purpose of calculating the regional value content of the bicycle. The total cost of the bicycle is determined in accordance with the following figures: Product costs: Value of originating materials - intermediate materials $10.60 - other materials $3.00 Value of non-originating materials $5.50 Other product costs: $6.50 Period costs: $2.50 Other costs: $0.10 Total cost of the bicycle: $28.20
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Product costs: Value of originating materials - intermediate materials $10.60 - other materials $3.00 Value of non-originating materials $5.50
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Value of originating materials - intermediate materials $10.60 - other materials $3.00
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Value of non-originating materials $5.50
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
 bicycle. The costs to produce the frame are the following: Product costs: Value of originating materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs $0.10 Total cost of the bicycle frame: $10,60 Additional costs to produce the bicycle are the following: Product costs: Value of originating materials $0.00 Value of non-originating materials $5.50 Other product costs $6.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total additional costs: $12.60 The producer designates the frame as an intermediate material under subsection (6). The frame qualifies as an originating material under subsection 3 (2). Therefore, the value of non-originating materials used in the production of the frame is not included in the value of non-originating materials for the purpose of calculating the regional value content of the bicycle. The net cost of the bicycle is calculated as follows: Costs of the bicycle frame (designated as an intermediate material) ($) Additional costs to produce the bicycle ($) Total ($) Product costs: Value of originating materials 10.60 0.00 10.60 Value of non-originating materials 5.50 5.50 Other product costs 6.50 6.50 Period costs (including $0.20 in excluded costs): 0.50 0.50 Other costs: 0.10 0.10 Total cost of the bicycle: 10.60 12.60 23.20 Excluded costs (in period costs) 0.20 0.20 Net cost of the bicycle (total cost minus excluded costs): 23.00 The regional value content of the bicycle is calculated as follows: RVC = (NC − VNM) ÷ NC × 100 = ($23.00 − $5.50) ÷ $23.00 × 100 = 76.1% The regional value content of the bicycle is 76.1% and the bicycle, therefore, qualifies as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
g materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs $0.10 Total cost of the bicycle frame: $10,60 Additional costs to produce the bicycle are the following: Product costs: Value of originating materials $0.00 Value of non-originating materials $5.50 Other product costs $6.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total additional costs: $12.60 The producer designates the frame as an intermediate material under subsection (6). The frame qualifies as an originating material under subsection 3 (2). Therefore, the value of non-originating materials used in the production of the frame is not included in the value of non-originating materials for the purpose of calculating the regional value content of the bicycle. The net cost of the bicycle is calculated as follows: Costs of the bicycle frame (designated as an intermediate material) ($) Additional costs to produce the bicycle ($) Total ($) Product costs: Value of originating materials 10.60 0.00 10.60 Value of non-originating materials 5.50 5.50 Other product costs 6.50 6.50 Period costs (including $0.20 in excluded costs): 0.50 0.50 Other costs: 0.10 0.10 Total cost of the bicycle: 10.60 12.60 23.20 Excluded costs (in period costs) 0.20 0.20 Net cost of the bicycle (total cost minus excluded costs): 23.00 The regional value content of the bicycle is calculated as follows: RVC = (NC − VNM) ÷ NC × 100 = ($23.00 − $5.50) ÷ $23.00 × 100 = 76.1% The regional value content of the bicycle is 76.1% and the bicycle, therefore, qualifies as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Situation A A producer located in a CUSMA country produces a bicycle that is subject to a regional value content requirement of 50% under the net cost method. The bicycle satisfies all other applicable requirements of these Regulations. The producer purchases a bicycle frame, which is used in the production of the bicycle, from a supplier located in a CUSMA country. The value of the frame determined in accordance with subsection (1) is $11.00. The frame is an originating material. All other materials used in the production of the bicycle are non-originating materials. The net cost of the bicycle is determined as follows: Product costs: Value of originating materials (bicycle frame) $11.00 Value of non-originating materials $5.50 Other product costs $6.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total cost of the bicycle: $23.60 Excluded costs (included in period costs): $0.20 Net cost of the bicycle: $23.40 The regional value content of the bicycle is calculated as follows: RVC = (NC − VNM) ÷ NC × 100 = ($23.40 − $5.50) ÷ $23.40 × 100 = 76.5% The regional value content of the bicycle is 76.5% and the bicycle, therefore, qualifies as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
A producer located in a CUSMA country produces a bicycle that is subject to a regional value content requirement of 50% under the net cost method. The bicycle satisfies all other applicable requirements of these Regulations. The producer purchases a bicycle frame, which is used in the production of the bicycle, from a supplier located in a CUSMA country. The value of the frame determined in accordance with subsection (1) is $11.00. The frame is an originating material. All other materials used in the production of the bicycle are non-originating materials. The net cost of the bicycle is determined as follows:
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Product costs: Value of originating materials (bicycle frame) $11.00 Value of non-originating materials $5.50 Other product costs $6.50
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Value of originating materials (bicycle frame) $11.00
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Period costs (including $0.20 in excluded costs): $0.50
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Excluded costs (included in period costs): $0.20
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The regional value content of the bicycle is calculated as follows: RVC = (NC − VNM) ÷ NC × 100 = ($23.40 − $5.50) ÷ $23.40 × 100 = 76.5%
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The regional value content of the bicycle is 76.5% and the bicycle, therefore, qualifies as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Situation B A producer located in a CUSMA country produces a bicycle that is subject to a regional value content requirement of 50% under the net cost method. The bicycle satisfies all other applicable requirements of these Regulations. The producer self-produces the bicycle frame that is used in the production of the bicycle. The costs to produce the frame are the following: Product costs: Value of originating materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total cost of the bicycle frame: $10.60 Additional costs to produce the bicycle are the following: Product costs: Value of originating materials $0.00 Value of non-originating materials $5.50 Other product costs $6.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total additional costs: $12.60 The producer does not designate the bicycle frame as an intermediate material under subsection (6). The net cost of the bicycle is calculated as follows: Costs of the bicycle frame (not designated as an intermediate material) ($) Additional costs to produce the bicycle ($) Total ($) Product costs: Value of originating materials 1.00 0.00 1.00 Value of non-originating materials 7.50 5.50 13.00 Other product costs 1.50 6.50 8.00 Period costs (including $0.20 in excluded costs): 0.50 0.50 1.00 Other costs: 0.10 0.10 0.20 Total cost of the bicycle: 10.60 12.60 23.20 Excluded costs (in period costs) 0.20 0.20 0.40 Net cost of the bicycle (total cost minus excluded costs): 22.80 The regional value content of the bicycle is calculated as follows: RVC = (NC − VNM) ÷ NC × 100 = ($22.80 − $13.00) ÷ $22.80 × 100 = 42.9% The regional value content of the bicycle is 42.9% and the bicycle, therefore, does not qualify as an originating good.
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
A producer located in a CUSMA country produces a bicycle that is subject to a regional value content requirement of 50% under the net cost method. The bicycle satisfies all other applicable requirements of these Regulations. The producer self-produces the bicycle frame that is used in the production of the bicycle. The costs to produce the frame are the following: Product costs: Value of originating materials $1.00 Value of non-originating materials $7.50 Other product costs $1.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total cost of the bicycle frame: $10.60
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Additional costs to produce the bicycle are the following: Product costs: Value of originating materials $0.00 Value of non-originating materials $5.50 Other product costs $6.50 Period costs (including $0.20 in excluded costs): $0.50 Other costs: $0.10 Total additional costs: $12.60
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
Product costs: Value of originating materials $0.00 Value of non-originating materials $5.50 Other product costs $6.50
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The producer does not designate the bicycle frame as an intermediate material under subsection (6). The net cost of the bicycle is calculated as follows: Costs of the bicycle frame (not designated as an intermediate material) ($) Additional costs to produce the bicycle ($) Total ($) Product costs: Value of originating materials 1.00 0.00 1.00 Value of non-originating materials 7.50 5.50 13.00 Other product costs 1.50 6.50 8.00 Period costs (including $0.20 in excluded costs): 0.50 0.50 1.00 Other costs: 0.10 0.10 0.20 Total cost of the bicycle: 10.60 12.60 23.20 Excluded costs (in period costs) 0.20 0.20 0.40 Net cost of the bicycle (total cost minus excluded costs): 22.80
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The regional value content of the bicycle is calculated as follows: RVC = (NC − VNM) ÷ NC × 100 = ($22.80 − $13.00) ÷ $22.80 × 100 = 42.9%
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
The regional value content of the bicycle is 42.9% and the bicycle, therefore, does not qualify as an originating good.