CUSMA Rules of Origin Regulations — 1
nitions (3) For the purposes of these Regulations, (a) Chapter , unless otherwise indicated, refers to a Chapter of the Harmonized System; (b) heading refers to any four-digit number or the first four digits of any tariff provision set out in the “Tariff Item” column in the Harmonized System; (c) subheading refers to any six-digit number or the first six digits of any tariff provision set out in the “Tariff Item” column in the Harmonized System; (d) tariff item refers to the first eight digits in the tariff classification number under the Harmonized System; (e) any reference to a tariff item in Chapter 4 of the Agreement or in these Regulations that includes letters is to be read as the appropriate eight-digit number in the Harmonized System as implemented in each CUSMA country; and (f) books refers to, (i) with respect to the books of a person that is located in a CUSMA country, (A) books and other documents that support the recording of revenues, expenses, costs, assets and liabilities and that are maintained in accordance with the Generally Accepted Accounting Principles set out in the publications listed in Schedule 10 with respect to the territory of the CUSMA country in which the person is located, and (B) financial statements, including note disclosures, that are prepared in accordance with the Generally Accepted Accounting Principles set out in the publications listed in Schedule 10 with respect to the territory of the CUSMA country in which the person is located, and (ii) with respect to the books of a person that is located outside the territories of the CUSMA countries, (A) books and other documents that support the recording of revenues, expenses, costs, assets and liabilities and that are maintained in accordance with the Generally Accepted Accounting Principles applied in that location or, if there are no such principles, in accordance with the International Financial Reporting Standards, published by the IFRS Foundation, as amended from time to time, and (B) financial statements, including note disclosures, that are prepared in accordance with the Generally Accepted Accounting Principles applied in that location or, if there are no such principles, in accordance with the International Financial Reporting Standards, published by the IFRS Foundation, as amended from time to time. Examples (4) If an example, referred to as an “Example”, is set out in these Regulations, the example is for the purpose of illustrating the application of a provision and, if there is any inconsistency between the example and the provision, the provision prevails to the extent of the inconsistency. References to domestic laws (5) Except as otherwise provided, references in these Regulations to domestic laws of the CUSMA countries apply to those laws as they are currently in effect and as they may be amended or superseded. Calculation of total cost (6) For the purposes of subsections 5 (11), 7 (11) and 8 (8), (a) total cost consists of all product costs, period costs and other costs that are recorded, except as otherwise provided in subparagraphs (b)(i) and (ii), on the books of the producer without regard to the location of the persons to whom payments with respect to those costs are made; (b) in calculating total cost, (i) the value of materials, other than intermediate materials, indirect materials and packing materials and containers, is determined in accordance with subsections 8 (1) and (2), (ii) the value of intermediate materials used in the production of the good or material with respect to which total cost is being calculated in accordance with subsection 8 (8), (iii) the value of indirect materials and the value of packing materials and containers is the costs that are recorded on the books of the producer for those materials, and (iv) product costs, period costs and other costs, other than costs referred to in subparagraphs (i) and (ii), are the costs that are recorded on the books of the producer for those costs; (c) total co