goods that are exported to the territory of
the United States or Australia.
(E) CALCULATING NET COST.—Consistent
with the provisions regarding allocation of costs
set out in generally accepted accounting prin-
ciples, the net cost of the automotive good
under subparagraph (B) shall be calculated
by—
(i) calculating the total cost incurred
with respect to all goods produced by the
producer of the automotive good, sub-
tracting any sales promotion, marketing
and after-sales service costs, royalties,
shipping and packing costs, and nonallow-
able interest costs that are included in the
total cost of all such goods, and then rea-
sonably allocating the resulting net cost of
those goods to the automotive good;
(ii) calculating the total cost incurred
with respect to all goods produced by that
producer, reasonably allocating the total
cost to the automotive good, and then sub-
tracting any sales promotion, marketing
and after-sales service costs, royalties,
shipping and packing costs, and nonallow-
able interest costs that are included in the
portion of the total cost allocated to the
automotive good; or
(iii) reasonably allocating each cost
that forms part of the total cost incurred
with respect to the automotive good so that
the aggregate of these costs does not in-
clude any sales promotion, marketing and
after-sales service costs, royalties, shipping
and packing costs, or nonallowable interest
costs.
(f) VALUE OF MATERIALS.—
(1) IN GENERAL.—For the purpose of calcu-
lating the regional value-content of a good under
subsection (e), and for purposes of applying the de
minimis rules under subsection (c), the value of a
material is—
(A) in the case of a material that is im-
ported by the producer of the good, the ad-
justed value of the material;
(B) in the case of a material acquired in
the territory in which the good is produced, the
value, determined in accordance with Articles 1
through 8, article 15, and the corresponding in-
terpretive notes of the Agreement on Implemen-
tation of Article VII of the General Agreement
on Tariffs and Trade 1994 referred to in sec-
tion 101(d)(8) of the Uruguay Round Agree-
ments Act, as set forth in regulations promul-
gated by the Secretary of the Treasury pro-
viding for the application of such Articles in the
absence of an importation; or
(C) in the case of a material that is self-
produced, the sum of—
(i) all expenses incurred in the pro-
duction of the material, including general
expenses; and
(ii) an amount for profit equivalent to
the profit added in the normal course of
trade.
(2) FURTHER ADJUSTMENTS TO THE VALUE OF
MATERIALS.—
(A) ORIGINATING
MATERIAL.—The fol-
lowing expenses, if not included in the value of
an originating material calculated under para-
graph (1), may be added to the value of the
originating material:
(i) The costs of freight, insurance,
packing, and all other costs incurred in
transporting the material within or be-
tween the territory of Australia, the United
States, or both, to the location of the pro-
ducer.
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of Australia, the United States, or
both, other than duties or taxes that are
waived, refunded, refundable, or otherwise
recoverable, including credit against duty
or tax paid or payable.
(iii) The cost of waste and spoilage re-
sulting from the use of the material in the
production of the good, less the value of
renewable scrap or byproducts.
(B) 
NONORIGINATING
MATERIAL.—The
following expenses, if included in the value of a
nonoriginating material calculated under para-
graph (1), may be deducted from the value of
the nonoriginating material:
(i) The costs of freight, insurance,
packing, and all other costs incurred in
transporting the material within or be-
tween the territory of Australia, the United
States, or both, to the location of the pro-
ducer.