CUSMA Rules of Origin Regulations — 20
VNM 20 (1) The VNM used by the producer in the production of other vehicles and parts thereof shall not, for the purposes of calculating the RVC of the good, include the VNM used to produce originating materials that are subsequently used in the production of the good. RVC requirements (2) Despite section 13 and Schedule 1, the RVC requirement is 62.5% under the net cost method for (a) a motor vehicle for the transport of 15 or fewer persons of subheading 8702.10 or 8702.90; (b) a passenger vehicle with a compression-ignition engine as the primary motor of propulsion of subheading 8703.21 through 8703.90; (c) a three or four-wheeled motorcycle of subheading 8703.21 through 8703.90; (d) a motorhome or entertainer coach of subheading 8703.21 through 8703.90; (e) an ambulance, a hearse or a prison van of subheading 8703.21 through 8703.90; (f) a vehicle solely or principally for off-road use of subheading 8703.21 through 8703.90; (g) a vehicle of subheading 8704.21 or 8704.31 that is solely or principally for off-road use; and (h) a good of heading 84.07 or 84.08 or subheading 8708.40, that is for use in a motor vehicle referred to in paragraphs (a) to (g). RVC requirements (3) Despite section 13 and Schedule 1, the RVC requirement is 60% under the net cost method for (a) a good that is: (i) a motor vehicle of heading 87.01, except for subheading 8701.20; (ii) a motor vehicle for the transport of 16 or more persons of subheading 8702.10 or 8702.90; (iii) a motor vehicle of subheading 8704.10; (iv) a motor vehicle of subheading 8704.22, 8704.23, 8704.32, or 8704.90 that is solely or principally for off-road use; (v) a motor vehicle of heading 87.05; or, (vi) a good of heading 87.06 that is not for use in a passenger vehicle, light truck, or heavy truck; (b) a good of heading 84.07 or 84.08 or subheading 8708.40 that is for use in a motor vehicle in paragraph (a); or (c) except for a good in paragraph (b) or of subheading 8482.10 through 8482.80, 8483.20 or 8483.30, a good in Table F that is subject to an RVC requirement and that is for use in a motor vehicle in paragraphs (2)(a) to (g) or (3)(a). RVC calculation (4) For the purpose of calculating the RVC under the net cost method for a good that is a motor vehicle referred to in paragraphs (2)(a) to (g) or (3)(a), a good listed in Table F for use as original equipment in the production of a good in paragraphs (2)(a) to (g) or a component listed in Table G for use as original equipment in the production of the motor vehicle in paragraph (3)(a), the VNM used by the producer in the production of the good is the sum of (a) for each material used by the producer listed in Table F or Table G, whether or not produced by the producer, at the choice of the producer and determined in accordance with section 7, either (i) the value of such material that is non-originating, or (ii) the VNM used in the production of such material; and (b) the value of any other non-originating material used by the producer that is not listed in Table F or Table G, determined in accordance with section 7. VNM (5) For greater certainty, despite subsection (4), for the purposes of a good that is a motor vehicle provided for in paragraphs (2)(a) through (g) or (3)(a), the VNM is the sum of the values of all non-originating materials used by the producer in the production of the vehicle. Averaging calculation (6) For the purpose of calculating the RVC of a motor vehicle covered by subsection (2) or (3), the producer may average its calculation over its fiscal year using any one of the following categories on the basis of either all motor vehicles in the category or only those motor vehicles in the category that are exported to the territory of one or more of the other CUSMA countries: (a) the same model line of motor vehicles in the same class of vehicles produced in the same plant in the territory of a CUSMA country; (b) the same class of motor vehicles produced in the same plant in the territory of a CUSMA countr