definiens: means the gross invoiced sales amount of Licensed Products paid to a Selling Party for the sale or other commercialdisposition of Licensed Products in the Territory during the Royalty Term applicable to the country of sale or disposition, less the followingitems listed to the extent actually taken or incurred with respect to such sale, in accordance with standard allocation procedures, allowancemethodologies and accounting methods consistently applied:(a ) customary credits or allowances for Licensed Product returns during such quarter, including, but not limited to, creditsfor returned, recalled, damaged, unsold, or short - dated Licensed Product, allowances granted or included in the invoice, discounts, customerprogram accruals ( overbills, administrative fees, Third Party rebates, sales brokerage, and volume rebates ), other adjustments and rebates, including but not limited to Medicaid and other state or governmental rebates, charge backs, floor stock adjustments, and similar items thatmay be estimated in accordance with GAAP / IFRS;(b ) import, export, sales ( including VAT or its equivalent ) and excise taxes, customs duties, other consumption taxes, orother governmental charges to the extent actually included in gross sales ; and(c ) costs of freight, insurance, packaging costs and other transportation charges to the extent actually included in grosssales