CUSMA Rules of Origin Regulations — 8
Value of material used in production 8 (1) Except as otherwise provided for non-originating materials used in the production of a good referred to in section 14 or subsection 15 (1), and except in the case of indirect materials, intermediate materials and packing materials and containers, for the purpose of calculating the regional value content of a good and for the purposes of subsections 5 (1) and (4), the value of a material that is used in the production of the good is (a) except as otherwise provided in subsection (4), if the material is imported by the producer of the good into the territory of the CUSMA country in which the good is produced, the transaction value of the material at the time of importation, including the costs incurred in the international shipment of the material; (b) if the material is acquired by the producer of the good from another person located in the territory of the CUSMA country in which the good is produced (i) the price paid or payable by the producer in the CUSMA country where the producer is located, (ii) the value as determined for an imported material in paragraph (a), or (iii) the earliest ascertainable price paid or payable in the territory of the CUSMA country where the good is produced; or (c) for a material that is self-produced (i) all the costs incurred in the production of the material, including general expenses, and (ii) an amount equivalent to the profit added in the normal course of trade or equal to the profit that is usually reflected in the sale of goods of the same class or kind as the self-produced material that is being valued if no self-produced material that has been used in its production has been valued including the amount equivalent or equal to the profit according to this paragraph. Adjustments (2) The following costs may be deducted from the value of a non-originating material or material of undetermined origin if they are included under subsection (1): (a) the costs of freight, insurance and packing and all other costs incurred in transporting the material to the location of the producer; (b) duties and taxes paid or payable with respect to the material in the territory of one or more of the CUSMA countries, 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 material in the territory of one or more of the CUSMA countries; and (d) the cost of waste and spoilage resulting from the use of the material in the production of the good, minus the value of any reusable scrap or by-product. Documentary evidence required (3) If the cost or expense listed in subsection (2) is unknown or documentary evidence of the amount of the adjustment is not available, no adjustment is to be made for that particular cost or expense. Unacceptable transaction value (4) For the purposes of paragraph (1)(a), if the transaction value of the material referred to in that paragraph is unacceptable or if there is no transaction value in accordance with Schedule 4, the value of the material must be determined in accordance with Schedule 6 and, if the costs referred to in subsection (2) are included in that value, those costs may be deducted from that value. Costs recorded on books (5) For the purposes of subsection (1), the costs referred to in paragraph (1)(c) are the costs referred to in that paragraph that are recorded on the books of the producer of the good. Designation of self-produced material as intermediate material (6) For the purpose of calculating the regional value content of a good, the producer of the good may designate as an intermediate material any self-produced material that 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 va