PUBLIC LAW 103-182—DEC. 8, 1993
107 STAT. 2073
that can be reasonably allocated to that intermediate material.
(12) INDIRECT MATERIAL. — The value of an indirect material
shall be based on the Generally Accepted Accounting Principles
applicable in the territory of the NAFTA country in which
the good is produced.
(c) AUTOMOTIVE GOODS. —
(1) PASSENGER VEHICLES AND UGHT TRUCKS, AND THEIR
AUTOMOTIVE PARTS. —For purposes of calculating the regional
value-content under the net cost method for—
(A) a goocl that is a motor vehicle for the transport
of 15 or fewer persons provided for in subheading
8702.10.00 or 8702.90.00, or a motor vehicle provided for
in subheadings 8703.21 through 8703.90, or subheading
8704.21 or 8704.31, or
(B) a good provided for in the tariff provisions listed
in Annex 403.1 of the Agreement, that is subject to a
regional value-content requirement and is for use as original equipment in the production of a motor vehicle for
the transport of 15 or fewer persons provided for in subheading 8702.10.00 or 8702.90.00, or a motor vehicle provided for in subheadings 8703.21 through 8703.90, or subheading 8704.21 or 8704.31,
the value of nononginating materials used by the producer
in the production of the good shall be the sum of the values
of all nonoriginating materials, determined in accordance with
subsection (b)(9) at the time the nonoriginating materials are
received by the first person in the territory of a NAFTA country
who takes title to them, that are imported from outside the
territories of the NAFTA countries under the tariff provisions
listed in Annex 403.1 of the Agreement and are used in the
production of the good or that are used in the production
of any material used in the production of the good.
(2) OTHER VEHICLES AND THEIR AUTOMOTIVE PARTS. —For
purposes of calculating the regional value-content under the
net cost method for a good that is a motor vehicle provided
for in heading 8701, subheading 8704.10, 8704.22, 8704.23,
8704.32, or 8704.90, or heading 8705 or 8706, a motor vehicle
for the transport of 16 or more persons provided for in subheading 8702.10.00 or 8702.90.00, or a component identified
in Annex 403.2 of the Agreement for use as original equipment
in the production of the motor vehicle, the value of
nonoriginating materials used by the producer in the production
of the good shall be the sum of—
(A) for each material used by the producer listed in
Annex 403.2 of the Agreement, whether or not produced
by the producer, at the choice of the producer and determined in accordance with subsection (b), either—
(i) the value of such material that is
nonoriginating, or
(ii) the value of nonoriginating materials used in
the production of such material; and
(B) the value of any other nonoriginating material
used by the producer that is not listedf in Annex 403.2
of the Agreemeint determined in accordance with subsection
(b).
(3) AVERAGING PERMITTED.—
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