CUSMA Rules of Origin Regulations — 8
t is used in the production of the good, provided that, if an intermediate material is subject to a regional value content requirement, no other self-produced material that is subject to a regional value content requirement and is incorporated into that intermediate material is also designated by the producer as an intermediate material. Particulars (7) For the purposes of subsection (6), (a) in order to qualify as an originating material, a self-produced material that is designated as an intermediate material must qualify as an originating material under these Regulations; (b) the designation of a self-produced material as an intermediate material is to be made solely at the choice of the producer of that self-produced material; and (c) except as otherwise provided in subsection 9 (6), the proviso set out in subsection (6) does not apply with respect to an intermediate material used by another producer in the production of a material that is subsequently acquired and used in the production of a good by the producer referred to in subsection (6). Value of intermediate material (8) The value of an intermediate material is, at the choice of the producer of the good, (a) the total cost incurred with respect to all goods produced by the producer that can be reasonably allocated to that intermediate material in accordance with Schedule 5; or (b) the aggregate of each cost that forms part of the total cost incurred with respect to that intermediate material that can be reasonably allocated to that intermediate material in accordance with Schedule 5. Calculation of total cost (9) Total cost under subsection (8) consists of the costs referred to in subsection 1 (6) and is calculated in accordance with that subsection and subsection 1 (7). Rescission of designation (10) If a producer of a good designates a self-produced material as an intermediate material under subsection (6) and the customs administration of a CUSMA country into which the good is imported determines during a verification of origin of the good that the intermediate material is a non-originating material and notifies the producer of this in writing before the written determination of whether the good qualifies as an originating good, the producer may rescind the designation in which case the regional value content of the good is to be calculated as though the self-produced material were not so designated. Effect of rescission (11) A producer of a good who rescinds a designation under subsection (10) may, not later than 30 days after the day on which the customs administration referred to in subsection (10) notifies the producer in writing that the self-produced material is a non-originating material, designate as an intermediate material another self-produced material that is incorporated into the good, subject to the proviso set out in subsection (6). Second rescission (12) If a producer of a good designates another self-produced material as an intermediate material under subsection (6) and the customs administration referred to in subsection (10) determines during the verification of origin of the good that that self-produced material is a non-originating material, (a) the producer may rescind the designation in which case the regional value content of the good is to be calculated as though the self-produced material were not so designated; and (b) the producer may not designate another self-produced material that is incorporated into the good as an intermediate material. Indirect materials (13) For the purpose of determining whether a good is an originating good, an indirect material that is used in the production of the good (a) is considered to be an originating material, regardless of where that indirect material is produced; and (b) if the good is subject to a regional value content requirement, for the purpose of calculating the net cost under the net cost method, has a value that is equal to the costs of that material that are recorded on the books of the prod