107 STAT. 2072
PUBLIC LAW 103-182—DEC. 8, 1993
such goods, and reasonably allocating the resulting net
cost of those goods to the good;
(B) calculating the total cost incurred with respect
to all goods produced by that producer, reasonably allocating the total cost to the good, and subtracting any sales
promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and nonallowable interest
costs that are included in the portion of the total cost
allocated to the good; or
(C) reasonably allocating each cost that is part of the
total cost incurred with respect to the good so that the
aggregate of these costs does not include any sales promotion, marketing and after-sales service costs, royalties,
shipping and packing costs, or nonallowable interest costs.
(9) VALUE OF MATERIAL USED IN PRODUCTION.— Except as
provided in paragraph (11), the value of a material used in
the production of a good—
(A) shall—
(i) be the transaction value of the material determined in accordance with Article 1 of the Customs
Valuation Code; or
(ii) in the event that there is no transaction value
or the transaction value of the material is unacceptable
under Article 1 of the Customs Valuation Code, be
determined in accordance with Articles 2 through 7
of the Customs Valuation Code; and
(B) if not included under clause (i) or (ii) of subparagraph (A), shall include—
(i) freight, insurance, packing, and all other costs
incurred in transporting the material to the location
of the producer;
(ii) duties, taxes, and customs brokerage fees paid
on the material in the territory of one or more of
the NAFTA countries; and
(iii) the cost of waste and spoilage resulting from
the use of the material in the production of the good,
less the value of renewable scrap or by-product.
(10) INTERMEDIATE MATERIAL.—Except for goods described
in subsection (c)(D, any self-produced material, other than a
component identified in Annex 403.2 of the Agreement, that
is used in the production of a good may be designated by
the producer of the good as an intermediate material for the
purpose of calculating the regional value-content of the good
under paragraph (2) or (3); provided that if the intermemate
material is subject to a re^onal value-content requirement,
no other self-produced material that is subject to a regional
value-content requirement and is used in the production of
the intermediate material may be designated by the producer
as an intermediate material.
(11) VALUE OF INTERMEDIATE MATERIAL. —The value of an
intermediate material shall be—
(A) the total cost incurred with respect to all goods
produced by the producer of the good that can be reasonably
allocated to the intermediate material; or
(B) the aggregate of each cost that is part of the total
cost incurred wiui respect to the intermediate material
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