108 STAT. 5146 PROCLAMATION 6641—DEC. 15, 1993 Annex I (con.) -9- subheading for such goods provides for and specifically describes both the goods and their parts, provided that such goods are not provided for in chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable requirements of this note. For purposes of this note, the term "material" means a good that is used in the production of another good and includes a part or an ingredient. (c) Regional value content. Except as provided in subdivision (c)(iv) of this note, the regional value content of a good shall be calculated, at the choice of the exporter or producer of such good, on the basis of either the transaction value method set out in subdivision (c)(i) or the net cost method set out in subdivision (c)(ii). (i) Transaction value method. The regional value content of a good may be calculated on the basis of the following transaction value method: TV -VNM RVC - X 100 TV where RVC is the regional value content, expressed as a percentage; TV is the transaction value of the good adjusted to a F.O.B. basis; and VNM is the value of non-originating materials used by the producer In the production of the good. (ii) Net cost method. The regional value content of a good may be calculated on the basis of the following net cost method: NC-VNM RVC - X 100 NC where RVC is the regional value content, expressed as a percentage; NC is the net cost of the good; and VNM is the value of non-originating materials used by the producer in the production of the good. (iii) Except as provided in subdivisions (d)(i) and (d)(ii)(A)(2) of this note, the value of non-originating materials used by the producer in the production of a good shall not, for
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