CUSMA Rules of Origin Regulations — 4
4 (1) In determining the transaction value of the material, the following must be added to the price actually paid or payable: (a) to the extent that they are incurred by the producer with respect to the material being valued and are not included in the price actually paid or payable, (i) commissions and brokerage fees, except buying commissions, and (ii) the costs of containers which, for customs purposes, are classified with the material under the Harmonized System; (b) the value, reasonably allocated in accordance with subsection (13), of the following elements if they are supplied directly or indirectly to the seller by the producer free of charge or at reduced cost for use in connection with the production and sale of the material, to the extent that the value is not included in the price actually paid or payable: (i) materials, other than indirect materials, used in the production of the material being valued, (ii) tools, dies, moulds and similar indirect materials used in the production of the material being valued, (iii) indirect materials, other than those referred to in subparagraph (ii) or in paragraph (c), (e) or (f) of the definition indirect material in subsection 1 (1) of these Regulations, used in the production of the material being valued, and (iv) engineering, development, artwork, design work, plans and sketches made outside the territory of the CUSMA country in which the producer is located that are necessary for the production of the material being valued; (c) the royalties related to the material, other than charges with respect to the right to reproduce the material in the territory of the CUSMA country in which the producer is located that the producer must pay directly or indirectly as a condition of sale of the material to the extent that such royalties are not included in the price actually paid or payable; and (d) the value of any part of the proceeds of any subsequent disposal or use of the material that accrues directly or indirectly to the seller. (2) The additions referred to in subsection (1) must be made under this section to the price actually paid or payable only on the basis of objective and quantifiable data. (3) If objective and quantifiable data do not exist with regard to the additions required to be made under subsection (1) to the price actually paid or payable, the transaction value cannot be determined under subsection 2(1). (4) Additions must not be made to the price actually paid or payable for the purpose of determining the transaction value except as provided in this section. (5) The amounts to be added under paragraph (1)(a) must be those amounts that are recorded on the books of the producer. (6) The value of the elements referred to in subparagraph (1)(b)(i) must be (a) if the elements are imported from outside the territory of the CUSMA country in which the seller is located, the customs value of the elements; (b) if the producer, or a related person on behalf of the producer, purchases the elements from a person who is not a related person in the territory of the CUSMA country in which the seller is located, the price actually paid or payable for the elements; (c) if the producer, or a related person on behalf of the producer, acquires the elements other than through a purchase from a person who is not a related person in the territory of the CUSMA country in which the seller is located, the value of the consideration related to the acquisition of the elements, based on the cost of the consideration that is recorded on the books of the producer or the related person; or (d) if the elements are produced by the producer, or by a related person, in the territory of the CUSMA country in which the seller is located, the total cost of the elements, determined in accordance with subsection (8). (7) The value referred to in subsection (6), to the extent that such costs are not included under paragraphs (6)(a) to (d), must include the following costs that are recorded on the books