CUSMA Rules of Origin Regulations — 9
9 (1) Under this section, the value of a material, referred to in subparagraph 8 (1)(b)(ii) of these Regulations, is the sum of (a) the cost or value of the materials used in the production of the material being valued as determined on the basis of the costs that are recorded on the books of the producer of the material, (b) the cost of producing the material being valued as determined on the basis of the costs that are recorded on the books of the producer of the material, and (c) an amount for profit and general expenses equal to that usually reflected in sales (i) if the material being valued is imported by the producer into the territory of the CUSMA country in which the producer is located, to persons located in the territory of the CUSMA country in which the producer is located by producers of materials of the same class or kind as the material being valued who are located in the country in which the material is produced, and (ii) if the material being valued is acquired by the producer from another person located in the territory of the CUSMA country in which the producer is located, to persons located in the territory of the CUSMA country in which the producer is located by producers of materials of the same class or kind as the material being valued who are located in the country in which the producer is located. (2) The value referred to in subsection (1) must include the following costs, to the extent they are not already included under paragraph (1)(a) or (b) and, provided that the elements are supplied directly or indirectly to the producer of the material being valued free of charge or at a reduced cost for use in the production of that material: (a) the value of the elements referred to in subparagraph 4(1)(b)(i) as determined in accordance with subsections 4(6) and (7); and (b) the value of the elements referred to in subparagraphs 4(1)(b)(ii) to (iv) as determined in accordance with subsection 4(9) and reasonably allocated to the material in accordance with subsection 4(13). (3) For the purposes of paragraphs (1)(a) and (b), if the costs recorded on the books of the producer of the material relate to the production of other goods and materials as well as to the production of the material being valued, the costs referred to in paragraphs (1)(a) and (b) with respect to the material being valued must be those costs recorded on the books of the producer of the material that can be reasonably allocated to that material in accordance with Schedule 5. (4) The amount for profit and general expenses referred to in paragraph (1)(c) must be determined on the basis of information supplied by or on behalf of the producer of the material being valued unless the profit and general expenses figures that are supplied with that information are inconsistent with those usually reflected in sales by producers of materials of the same class or kind as the material being valued who are located in the country in which the material is produced or the producer is located, as the case may be. The information supplied must be prepared in a manner consistent with Generally Accepted Accounting Principles of the country in which the material being valued is produced. If the material is produced in the territory of a CUSMA country, the information must be prepared in accordance with the Generally Accepted Accounting Principles set out in the publications listed for that territory in Schedule 10. (5) For the purposes of paragraph (1)(c) and subsection (4), general expenses means the direct and indirect costs of producing and selling the material that are not included under paragraphs (1)(a) and (b). (6) For the purposes of subsection (4), the amount for profit and general expenses must be taken as a whole. If, in the information supplied by or on 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