CUSMA Rules of Origin Regulations — 7
Calculation 7 (1) Except as otherwise provided in subsection (6), the regional value content of a good must be calculated, at the choice of the importer, exporter or producer of the good, on the basis of either the transaction value method or the net cost method. Transaction value method (2) The transaction value method for calculating the regional value content of a good is as follows: RVC = (TV − VNM) ÷ TV × 100 where RVC is the regional value content of the good, expressed as a percentage; TV is the transaction value of the good, determined in accordance with Schedule 3 with respect to the transaction in which the producer of the good sold the good, adjusted to exclude any costs incurred in the international shipment of the good; and VNM is the value of non-originating materials used by the producer in the production of the good, determined in accordance with section 8 . Net cost method (3) The net cost method for calculating the regional value content of a good is as follows: RVC = (NC − VNM) ÷ NC × 100 where RVC is the regional value content of the good, expressed as a percentage; NC is the net cost of the good, calculated in accordance with subsection (11); and VNM is the value of non-originating materials used by the producer in the production of the good determined, except as otherwise provided in sections 14 and 15 , in accordance with section 8 . Non-originating materials — values not included (4) For the purpose of calculating the regional value content of a good under subsection (2) or (3), the value of non-originating materials used by a producer in the production of the good must not include (a) the value of any non-originating materials used by another producer in the production of originating materials that are subsequently acquired and used by the producer of the good in the production of that good; or (b) the value of any non-originating materials used by the producer in the production of a self-produced material that is an originating material and is designated as an intermediate material. Self-produced material (5) For the purposes of subsection (4), (a) in the case of any self-produced material that is not designated as an intermediate material, only the value of any non-originating materials used in the production of the self-produced material is to be included in the value of non-originating materials used in the production of the good; and (b) if a self-produced material that is designated as an intermediate material and is an originating material is used by the producer of the good with non-originating materials — whether or not those non-originating materials are produced by that producer — in the production of the good, the value of those non-originating materials is to be included in the value of non-originating materials. Net cost method — when required (6) The regional value content of a good must be calculated only on the basis of the net cost method if Schedule 1 does not provide a rule for the good based on the transaction value method. Net cost method — change permitted (7) If the importer, exporter or producer of a good calculates the regional value content of the good on the basis of the transaction value method and the customs administration of a CUSMA country subsequently notifies that importer, exporter or producer in writing, during the course of a verification of origin, that (a) the transaction value of the good, as determined by that importer, exporter or producer, is required to be adjusted under section 4 of Schedule 3, or (b) the value of any material used in the production of the good, as determined by that importer, exporter or producer, is required to be adjusted under section 4 of Schedule 6, the importer, exporter or producer may choose that the regional value content of the good be calculated on the basis of the net cost method, in which case the calculation must be made within 30 days after the producer receives the notification, or such longer period as that customs adminis