GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
CUSMA Rules of Origin Regulations — 1
1 Unless otherwise stated, the following definitions apply in this Schedule. buying commissions means fees paid by a producer to that producer’s agent or mandatary for the agent or mandatary’s services in representing the producer in the purchase of a material. ( commission d’achat ) materials of the same class or kind means, with respect to materials being valued, materials that are within a group or range of materials that (a) is produced by a particular industry or industry sector; and (b) includes identical materials or similar materials. ( matières de même nature ou de même espèce ) producer refers to the producer who uses the material in the production of a good that is subject to a regional value content requirement. ( producteur ) seller refers to a person who sells the material being valued to the producer. ( vendeur )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
buying commissions means fees paid by a producer to that producer’s agent or mandatary for the agent or mandatary’s services in representing the producer in the purchase of a material. ( commission d’achat )
CUSMA Rules of Origin Regulations — (a)
materials of the same class or kind means, with respect to materials being valued, materials that are within a group or range of materials that (a) is produced by a particular industry or industry sector; and (b) includes identical materials or similar materials. ( matières de même nature ou de même espèce )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
producer refers to the producer who uses the material in the production of a good that is subject to a regional value content requirement. ( producteur )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
seller refers to a person who sells the material being valued to the producer. ( vendeur )
CUSMA Rules of Origin Regulations — 3
3 (1) The price actually paid or payable is the total payment made or to be made by the producer to or for the benefit of the seller of the material. The payment need not necessarily take the form of a transfer of money. It may be made by letters of credit or negotiable instruments. Payment may be made directly or indirectly to the seller. For an illustration of this, the settlement by the producer, whether in whole or in part, of a debt owed by the seller is an indirect payment. (2) Activities undertaken by the producer on the producer’s own account, other than those for which an adjustment is provided in section 4, must not be considered to be an indirect payment, even though the activities might be regarded as being for the benefit of the seller. (3) The transaction value must not include charges for construction, erection, assembly, maintenance or technical assistance related to the use of the material by the producer, provided that they are distinguished from the price actually paid or payable. (4) The flow of dividends or other payments from the producer to the seller that do not relate to the purchase of the material are not part of the transaction value.
CUSMA Rules of Origin Regulations — 4
duced up to the time of the first shipment or allocating the value over the entire anticipated production if contracts or firm commitments exist for that production. For an illustration of this, a producer provides the seller with a mould to be used in the production of the material and contracts with the seller to buy 10,000 units of that material. By the time the first shipment of 1,000 units arrives, the seller has already produced 4,000 units. In these circumstances, the producer may choose to allocate the value of the mould over 4,000 units or 10,000 units but must not choose to allocate the value of the elements to the first shipment of 1,000 units. The producer may choose to allocate the entire value of the elements to a single shipment of material only if that single shipment comprises all of the units of the material acquired by the producer under the contract or commitment for that number of units of the material between the seller and the producer. (14) The addition for the royalties referred to in paragraph (1)(c) is the payment for the royalties that is recorded on the books of the producer or if the payment for the royalties is recorded on the books of another person, the payment for the royalties that is recorded on the books of that other person. (15) The value of the proceeds referred to in paragraph (1)(d) is the amount that is recorded for those proceeds on the books of the producer or the seller.
CUSMA Rules of Origin Regulations — 5
5 (1) If there is no transaction value under subsection 2(2) or the transaction value is unacceptable under subsection 2(3), the value of the material, referred to in subparagraph 8 (1)(b)(ii) of these Regulations, is the transaction value of identical materials sold, at or about the same time as the material being valued was shipped to the producer, to a buyer located in the same country as the producer. (2) In applying this section, the transaction value of identical materials in a sale at the same commercial level and in substantially the same quantity of materials as the material being valued must be used to determine the value of the material. If no such sale is found, the transaction value of identical materials sold at a different commercial level or in different quantities, adjusted to take into account the differences attributable to the commercial level or quantity, must be used, provided that such adjustments can be made on the basis of evidence that clearly establishes that the adjustment is reasonable and accurate, whether the adjustment leads to an increase or a decrease in the value. (3) A condition for an adjustment under subsection (2) to take into account different commercial levels or different quantities is that the adjustment be made only on the basis of evidence that clearly establishes that the adjustment is reasonable and accurate. For an illustration of this, a bona fide price list contains prices for different quantities. If the material being valued consists of a shipment of 10 units and the only identical materials for which a transaction value exists involved a sale of 500 units, and it is recognized that the seller grants quantity discounts, the required adjustment may be accomplished by resorting to the seller’s bona fide price list and using the price applicable to a sale of 10 units. This does not require that sales had to have been made in quantities of 10 as long as the price list has been established as being bona fide through sales at other quantities. In the absence of such an objective measure, however, the determination of a value under this section is not appropriate. (4) If more than one transaction value of identical materials is found, the lowest of those values must be used to determine the value of the material under this section.
CUSMA Rules of Origin Regulations — 6
6 (1) If there is no transaction value under subsection 2(2) or the transaction value is unacceptable under subsection 2(3), and the value of the material cannot be determined under section 5, the value of the material, referred to in subparagraph 8 (1)(b)(ii) of these Regulations is the transaction value of similar materials sold, at or about the same time as the material being valued was shipped to the producer, to a buyer located in the same country as the producer. (2) In applying this section, the transaction value of similar materials in a sale at the same commercial level and in substantially the same quantity of materials as the material being valued must be used to determine the value of the material. If no such sale is found, the transaction value of similar materials sold at a different commercial level or in different quantities, adjusted to take into account the differences attributable to the commercial level or quantity, must be used, provided that such adjustments can be made on the basis of evidence that clearly establishes that the adjustment is reasonable and accurate, whether the adjustment leads to an increase or a decrease in the value. (3) A condition for an adjustment under subsection (2) to take into account different commercial levels or different quantities is that the adjustment be made only on the basis of evidence that clearly establishes that the adjustment is reasonable and accurate. For an illustration of this, a bona fide price list contains prices for different quantities. If the material being valued consists of a shipment of 10 units and the only similar materials for which a transaction value exists involved a sale of 500 units, and it is recognized that the seller grants quantity discounts, the required adjustment may be accomplished by resorting to the seller’s bona fide price list and using the price applicable to a sale of 10 units. This does not require that sales had to have been made in quantities of 10 as long as the price list has been established as being bona fide through sales at other quantities. In the absence of such an objective measure, however, the determination of a value under this section is not appropriate. (4) If more than one transaction value of similar materials is found, the lowest of those values must be used to determine the value of the material under this section.
CUSMA Rules of Origin Regulations — 7
7 If there is no transaction value under subsection 2(2) or the transaction value is unacceptable under subsection 2(3), and the value of the material cannot be determined under section 5 or 6, the value of the material, referred to in subparagraph 8 (1)(b)(ii) of these Regulations must be determined under section 8 or, if the value cannot be determined under that section, under section 10 unless, at the request of the producer, the order of application of sections 8 and 9 must be reversed.
CUSMA Rules of Origin Regulations — 8
ided by the producer are inconsistent with those figures, the amount for profit and general expenses must be based on relevant information other than that supplied by or on behalf of the producer. (6) For the purposes of this section, general expenses are the direct and indirect costs of marketing the material in question. (7) In determining either the commissions usually earned or the amount generally reflected for profit and general expenses under this section, the question as to whether certain materials are materials of the same class or kind as the material being valued must be determined on a case-by-case basis with reference to the circumstances involved. Sales in the country in which the producer is located of the narrowest group or range of materials of the same class or kind as the material being valued, for which the necessary information can be provided, must be examined. For the purposes of this section, materials of the same class or kind includes materials imported from the same country as the material being valued as well as materials imported from other countries or acquired within the territory of the CUSMA country in which the producer is located. (8) For the purposes of subsection (2), the earliest date is the date by which sales of identical materials or similar materials are made, in sufficient quantity to establish the unit price, to other persons in the territory of the CUSMA country in which the producer is located.
CUSMA Rules of Origin Regulations — 9
 behalf of the producer of a material, the profit figure is low and the general expenses figure is high, the profit and general expense figures taken together may nevertheless be consistent with those usually reflected in sales of materials of the same class or kind as the material being valued. If the producer of a material can demonstrate that it is taking a nil or low profit on its sales of the material because of particular commercial circumstances, its actual profit and general expense figures must be taken into account, provided that the producer of the material has valid commercial reasons to justify them and its pricing policy reflects usual pricing policies in the branch of industry concerned. Such a situation might occur if producers have been forced to lower prices temporarily because of an unforeseeable drop in demand or if the producers sell the material to complement a range of materials and goods being produced in the country in which the material is sold and accept a low profit to maintain competitiveness. This is also the case where a material is being launched and the producer accepts a nil or low profit to offset high general expenses associated with the launch. (7) If the figures for the profit and general expenses supplied by or on behalf of the producer of the material are inconsistent with those usually reflected in sales of materials of the same class or kind as the material being valued that are made by other producers in the country in which that material is sold, the amount for profit and general expenses may be based on relevant information other than that supplied by or on behalf of the producer of the material. (8) The question as to whether certain materials are of the same class or kind as the material being valued is determined on a case-by-case basis with reference to the circumstances involved. For the purpose of determining the amount for profit and general expenses usually reflected under the provisions of this section, sales of the narrowest group or range of materials of the same class or kind as the material being valued, for which the necessary information can be provided, must be examined. For the purposes of this section, the materials of the same class or kind must be from the same country as the material being valued.
CUSMA Rules of Origin Regulations — 10
10 (1) If there is no transaction value under subsection 2(2) or the transaction value is unacceptable under subsection 2(3), and the value of the material cannot be determined under sections 5 to 9, the value of the material, referred to in subparagraph 8 (1)(b)(ii) of these Regulations, must be determined under this section using reasonable means consistent with the principles and general provisions of this Schedule and on the basis of data available in the country in which the producer is located. (2) The value of the material determined under this section must not be determined on the basis of (a) a valuation system which provides for the acceptance of the higher of two alternative values; (b) a cost of production other than the value determined in accordance with section 9; (c) minimum values; (d) arbitrary or fictitious values; (e) if the material is produced in the territory of the CUSMA country in which the producer is located, the price of the material for export from that territory; or (f) if the material is imported, the price of the material for export to a country other than to the territory of the CUSMA country in which the producer is located. (3) To the greatest extent possible, the value of the material determined under this section must be based on the methods of valuation set out in sections 2 to 9, but a reasonable flexibility in the application of such methods would be in conformity with the aims and provisions of this section. For an illustration of this, under section 5, the requirement that the identical materials should be sold at or about the same time as the material being valued is shipped to the producer could be flexibly interpreted. Similarly, identical materials produced in a country other than the country in which the material is produced could be the basis for determining the value of the material or the value of identical materials already determined under section 8 could be used. For another illustration, under section 6, the requirement that the similar materials should be sold at or about the same time as the material being valued is shipped to the producer could be flexibly interpreted. Likewise, similar materials produced in a country other than the country in which the material is produced could be the basis for determining the value of the material or the value of similar materials already determined under the provisions of section 8 could be used. For a further illustration, under section 8, the 90-day requirement could be administered flexibly.
CUSMA Rules of Origin Regulations — 1
1 The following definitions apply in this Schedule. FIFO method means the method by which the value of non-originating materials first received in materials inventory, as determined in accordance with section 8 of these Regulations, is considered to be the value of non-originating materials used in the production of the good first shipped to the buyer of the good. ( méthode PEPS ) identical materials means, with respect to a material, materials that are the same as that material in all respects, including physical characteristics, quality and reputation but excluding minor differences in appearance. ( matières identiques ) LIFO method means the method by which the value of non-originating materials last received in materials inventory, as determined in accordance with section 8 of these Regulations, is considered to be the value of non-originating materials used in the production of the good first shipped to the buyer of the good. ( méthode DEPS ) materials inventory means, with respect to a single plant of the producer of a good, an inventory of non-originating materials that are identical materials and that are used in the production of the good. ( stock de matières ) rolling average method means the method by which the value of non-originating materials used in the production of a good that is shipped to the buyer of the good is based on the average value, calculated in accordance with section 4, of the non-originating materials in materials inventory. ( méthode de la moyenne mobile )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
FIFO method means the method by which the value of non-originating materials first received in materials inventory, as determined in accordance with section 8 of these Regulations, is considered to be the value of non-originating materials used in the production of the good first shipped to the buyer of the good. ( méthode PEPS )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
identical materials means, with respect to a material, materials that are the same as that material in all respects, including physical characteristics, quality and reputation but excluding minor differences in appearance. ( matières identiques )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
LIFO method means the method by which the value of non-originating materials last received in materials inventory, as determined in accordance with section 8 of these Regulations, is considered to be the value of non-originating materials used in the production of the good first shipped to the buyer of the good. ( méthode DEPS )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
materials inventory means, with respect to a single plant of the producer of a good, an inventory of non-originating materials that are identical materials and that are used in the production of the good. ( stock de matières )
CUSMA Rules of Origin Regulations — CUSMA Rules of Origin Regulations
rolling average method means the method by which the value of non-originating materials used in the production of a good that is shipped to the buyer of the good is based on the average value, calculated in accordance with section 4, of the non-originating materials in materials inventory. ( méthode de la moyenne mobile )
CUSMA Rules of Origin Regulations — 2
2 For the purposes of subsections 5 (13) and (14) and 7 (10) of these Regulations, the following are the methods for determining the value of non-originating materials that are identical materials and are used in the production of a good: (a) FIFO method; (b) LIFO method; and (c) rolling average method.
CUSMA Rules of Origin Regulations — 3
3 (1) If a producer of a good chooses, with respect to non-originating materials that are identical materials, any of the methods referred to in section 2, the producer may not use another of those methods with respect to any other non-originating materials that are identical materials and that are used in the production of that good or in the production of any other good. (2) If a producer of a good produces the good in more than one plant, the method chosen by the producer must be used with respect to all plants of the producer in which the good is produced. (3) The method chosen by the producer to determine the value of non-originating materials may be chosen at any time during the producer’s fiscal year and may not be changed during that fiscal year.
CUSMA Rules of Origin Regulations — 4
4 (1) The average value of non-originating materials that are identical materials and that are used in the production of a good that is shipped to the buyer of the good is calculated by dividing (a) the total value of non-originating materials that are identical materials in materials inventory prior to the shipment of the good, as determined in accordance with section 8 of these Regulations, by (b) the total units of those non-originating materials in materials inventory prior to the shipment of the good. (2) The average value calculated under subsection (1) is applied to the remaining units of non-originating materials in materials inventory.
CUSMA Rules of Origin Regulations — (a)
The following examples are based on the figures set out in the table below and on the following assumptions: (a) Materials A are non-originating materials that are identical materials and are used in the production of Good A; (b) one unit of Materials A is used to produce one unit of Good A; (c) all other materials used in the production of Good A are originating materials; and (d) Good A is produced in a single plant. Materials Inventory Sales (Receipts of Materials A) (Shipments of Good A) Date (m/d/y) Quantity (units) Unit Cost * ($) Quantity (units) 01/01/21 200 1.05 01/03/21 1,000 1.00 01/05/21 1,000 1.10 01/08/21 500 01/09/21 500 01/10/21 1,000 1.05 01/14/21 1,500 01/16/21 2,000 1.10 01/18/21 1,500 * Unit cost is determined in accordance with section 8 of these Regulations.
CUSMA Rules of Origin Regulations — (a)
(a) Materials A are non-originating materials that are identical materials and are used in the production of Good A;
CUSMA Rules of Origin Regulations — (b)
(b) one unit of Materials A is used to produce one unit of Good A;
CUSMA Rules of Origin Regulations — (c)
(c) all other materials used in the production of Good A are originating materials; and
CUSMA Rules of Origin Regulations — (d)
(d) Good A is produced in a single plant.