Document ID: chunk:federal_register_of_legislation:F2018L01602:reg:7
Version: federal_register_of_legislation:F2018L01602
Segment Type: reg
Provision Reference: reg 7
Character Range: 4831–6940

7  Value of goods that are non‑originating materials
 (1) For the purposes of subsection 153ZKL(2) of the Act, the value of non‑originating materials used in the production of goods is:
 (a) for non‑originating materials imported into the territory of a Party—the value of the non‑originating materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994; or
 (b) for non‑originating materials acquired in the territory of a Party where the goods are produced—the earliest ascertainable price paid or payable for the non‑originating materials in the territory of the Party.
 (2) For the purposes of paragraph (1)(a), in working out the value of particular non‑originating materials, the following must be included:
 (a) the cost of freight of the non‑originating materials to the port or place of entry in the Party;
 (b) the cost of insurance related to that freight.
 (3) For the purposes of paragraph (1)(a) or (b), in working out the value of particular non‑originating materials, the following may be deducted:
 (a) the costs of freight, insurance, packing and all other costs incurred in transporting the non‑originating materials, within or between the territories of the Parties, to the producer of the goods;
 (b) duties, taxes and customs brokerage fees on the non‑originating materials that:
 (i) have been paid in the territory of one or more of the Parties; and
 (ii) have not been waived or refunded; and
 (iii) are not refundable or otherwise recoverable;
  including any credit against duties or taxes that have been paid or that are payable;
 (c) the costs of waste and spoilage resulting from the use of the non‑originating materials in the production of the goods, reduced by the value of reusable scrap or by‑products;
 (d) the costs of processing incurred in the territory of one or more of the Parties in the production of the non‑originating materials;
 (e) the costs of originating materials used or consumed in the production of the non‑originating materials in the territory of one or more of the Parties.