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. 
(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