Page:United States Statutes at Large Volume 107 Part 3.djvu/133

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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