CUSMA Rules of Origin Regulations — 5
 in the Generally Accepted Accounting Principles of the CUSMA country where the production was performed or one of the methods set out in Schedule 7. Value of non-originating materials — production of good (14) For the purposes of subsection (4), the value of the non-originating materials used in the production of the good may, at the choice of the producer, be determined in accordance with an inventory management method recognized in the Generally Accepted Accounting Principles of the CUSMA country where the production was performed or one of the methods set out in Schedule 7. Examples illustrating de minimis rules (15) Each of the following examples is an “Example” as referred to in subsection 1 (4). Example 1 (subsection (1)): Producer A, located in a CUSMA country, uses originating materials and non-originating materials in the production of aluminium powder of heading 76.03. The product-specific rule of origin set out in Schedule 1 for heading 76.03 specifies a change in tariff classification from any other Chapter. There is no applicable regional value content requirement for this heading. Therefore, in order for the aluminium powder to qualify as an originating good under the rule set out in Schedule 1, Producer A may not use any non-originating material of Chapter 76 in the production of the aluminum powder. All of the materials used in the production of the aluminium powder are originating materials, with the exception of a small amount of aluminium scrap of heading 76.02, that is in the same Chapter as the aluminium powder. Under subsection (1), if the value of the non-originating aluminium scrap does not exceed 10% of the transaction value of the aluminium powder or the total cost of the aluminium powder, whichever is applicable, the aluminium powder would be considered an originating good. Example 2 (subsection (2)): Producer A, located in a CUSMA country, uses originating materials and non-originating materials in the production of fans of subheading 8414.59. There are two alternative rules established in Schedule 1 for subheading 8414.59, one of which specifies a change in tariff classification from any other heading. The other rule specifies both a change in tariff classification from the subheading under which parts of the fans are classified and a regional value content requirement. In order for the fan to qualify as an originating good under the first of the alternative rules, all of the materials that are classified under the subheading for parts of fans and are used in the production of the completed fan must be originating materials. In this case, all of the non-originating materials used in the production of the fan satisfy the change in tariff classification set out in the rule that specifies a change in tariff classification from any other heading, with the exception of one non-originating material that is classified under the subheading for parts of fans. Under subsection (1), if the value of the non-originating material that does not satisfy the change in tariff classification specified in the first rule does not exceed 10% of the transaction value of the fan or the total cost of the fan, whichever is applicable, the fan would be considered an originating good. Therefore, under subsection (2), the fan would not be required to satisfy the alternative rule that specifies both a change in tariff classification and a regional value content requirement. Example 3 (subsection (2)): Producer A, located in a CUSMA country, uses originating materials and non-originating materials in the production of a copper anode of heading 74.02. The product-specific rule of origin set out in Schedule 1 for heading 74.02 specifies both a change in tariff classification from any other heading, except from heading 74.04, under which certain copper materials are classified and a regional value content requirement. Therefore, with respect to that part of the rule that specifies a change in tariff classification, in order for th