CUSMA Rules of Origin Regulations — 4
ection (8). (7) The value referred to in subsection (6), to the extent that such costs are not included under paragraphs (6)(a) to (d), must include the following costs that are recorded on the books of the producer or the related person supplying the elements on behalf of the producer: (a) the costs of freight, insurance, packing and all other costs incurred in transporting the elements to the location of the seller; (b) duties and taxes paid or payable with respect to the elements, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; (c) customs brokerage fees, including the cost of in-house customs brokerage services, incurred with respect to the elements; and (d) the cost of waste and spoilage resulting from the use of the elements in the production of the material, less the value of reusable scrap or by-product. (8) For the purposes of paragraph (6)(d), the total cost of the elements referred to in subparagraph (1)(b)(i) is (a) if the elements are produced by the producer, at the choice of the producer, (i) the total cost that was incurred with respect to all goods produced by the producer and calculated on the basis of the costs that are recorded on the books of the producer and that can be reasonably allocated to the elements in accordance with Schedule 5, or (ii) the aggregate of each cost that was incurred by the producer and that forms part of the total cost incurred with respect to the elements, calculated on the basis of the costs that are recorded on the books of the producer and that can be reasonably allocated to the elements in accordance with Schedule 5; and (b) if the elements are produced by a person who is related to the producer, at the choice of the producer, (i) the total cost that was incurred with respect to all goods produced by that related person and calculated on the basis of the costs that are recorded on the books of that person and that can be reasonably allocated to the elements in accordance with Schedule 5, or (ii) the aggregate of each cost that was incurred by that related person and that forms part of the total cost incurred with respect to the elements calculated on the basis of the costs that are recorded on the books of that person and that can be reasonably allocated to the elements in accordance with Schedule 5. (9) Except as provided in subsections (11) and (12), the value of the elements referred to in subparagraphs (1)(b)(ii) to (iv) is (a) the cost of those elements that is recorded on the books of the producer; or (b) if such elements are provided by another person on behalf of the producer and the cost is not recorded on the books of the producer, the cost of those elements that is recorded on the books of that other person. (10) If the elements referred to in subparagraphs (1)(b)(ii) to (iv) were previously used by or on behalf of the producer, the value of those elements must be adjusted downward to reflect that use. (11) If the elements referred to in subparagraphs (1)(b)(ii) and (iii) were leased by the producer or a person related to the producer, the value of those elements is the cost of the lease that is recorded on the books of the producer or that related person. (12) An addition must not be made to the price actually paid or payable for the elements referred to in subparagraph (1)(b)(iv) that are available in the public domain, other than the cost of obtaining copies of them. (13) The producer must choose the method of allocating to the material the value of the elements referred to in subparagraphs (1)(b)(ii) to (iv), provided that the value is reasonably allocated. The methods the producer may choose to allocate the value include allocating the value over the number of units produced up to the time of the first shipment or allocating the value over the entire anticipated production if contracts or firm commitments exist for that production. For an illustration of this, a pro