PUBLIC LAW 103-182—DEC. 8, 1993
107 STAT. 2071
(5) NET COST METHOD MUST BE USED IN CERTAIN CASES.—
An exporter or producer shall calculate the regional valuecontent of a good solely on the basis of the net cost method
described in paragraph (3), if—
(A) there is no transaction value for the good;
(B) the transaction value of the good is unacceptable
under Article 1 of the Customs Valuation Code;
(C) the gooil is sold by the producer to a related person
and the volume, by imits of quantity, of sales of identical
or similar goods to related persons during the six-month
period immediately preceding the month in which the good
IS sold exceeds 85 percent of the producer's total sales
of such goods during that period;
(D) the goo<i is—
(i) a motor vehicle provided for in heading 8701
or 8702, subheadings 8703.21 through 8703.90, or
heading 8704, 8705, or 8706;
(ii) identified in Annex 403.1 or 403.2 of the Agreement and is for use in a motor vehicle provided for
in heading 8701 or 8702, subheadings 8703.21 through
8703.90, or heading 8704, 8705, or 8706;
(iii) provided for in subheadings 6401.10 through
6406.10; or
(iv) a word processing machine provided for in
subheading 8469.10.00;
(E) the exporter or producer chooses to accumulate
the regional value-content of the good in accordance with
subsection (d); or
(F) the good is designated as an intermediate material
under paragraph (10) and is subject to a regional valuecontent requirement.
(6) NET COST METHOD ALLOWED FOR ADJUSTMENTS. —If an
exporter or producer of a good calculates the regional valuecontent of the good on the basis of the transaction value method
and a NAFTA country subsequently notifies the exporter or
producer, during the course of a verification conducted in
accordance with chapter 5 of the Agreement, that the transaction value of the good or the value of any material used
in the production of the good must be adjusted or is imacceptable under Article 1 of the Customs Valuation Code, the
exporter or producer may calculate the regional value-content
of the good on the basis of the net cost method.
(7) REVIEW OF ADJUSTMENT. —Nothing in paragraph (6)
shall be construed to prevent any review or appeal available
in accordance with article 510 of the Agreement with respect
to an adjustment to or a rejection of—
(A) the transaction value of a good; or
(B) the value of any material used in the production
of a eood.
(8) CALCULATING NET COST. —The producer may, consistent
with regulations implementing this section, calculate the net
cost of a good under paragraph (3), by—
(A) calculating the total cost incurred with respect
to all goods produced by that producer, subtracting any
sales promotion, marketing and after-sales service costs,
royalties, shipping and packing costs, and nonallowable
interest costs that are includcMd in the total cost of all
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