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Marginal note:Definitions

• 1 (1) The following definitions apply in these Regulations.

  Customs Valuation Agreement

  Customs Valuation Agreement  means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the Marrakech Agreement Establishing the World Trade Organization, done in Marrackech on 15 April 1994. (Accord sur l’évaluation en douane)

  sales promotion, marketing and after-sales service costs

  sales promotion, marketing and after-sales service costs  means the following costs related to sales promotion, marketing and after-sales service:

  • (a) sales and marketing promotion, media advertising, advertising and market research, promotional and demonstration materials, exhibits, sales conferences, trade shows and conventions, banners, marketing displays, free samples, sales, marketing and after-sales service literature (product brochures, catalogues, technical literature, price lists, service manuals, or sales aid information), establishment and protection of logos and trademarks, sponsorships, wholesale and retail restocking charges, or entertainment;

  territory

  territory  means,

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  • (c) for the United States,

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    • (ii) the foreign trade zones located in the United States and Puerto Rico, and

Marginal note:Value of material used in production

• 8 (1) Except as otherwise provided for non-originating materials used in the production of a good referred to in section 14 or subsection 15(1), and except in the case of indirect materials, intermediate materials and packing materials and containers, for the purpose of calculating the regional value content of a good and for the purposes of subsections 5(1) and (4), the value of a material that is used in the production of the good is

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  • (c) for a material that is self-produced

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    • (ii) an amount equivalent to the profit added in the normal course of trade or equal to the profit that is usually reflected in the sale of goods of the same class or kind as the self-produced material that is being valued if no self-produced material that has been used in its production has been valued including the amount equivalent or equal to the profit according to this paragraph.

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• (28) Each of the following examples is an “Example” as referred to in subsection 1(4).

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    Producer A, located in CUSMA country A, imports a bicycle chainring into CUSMA country A. Producer A purchased the chainring from a middleman located in CUSMA country B. The middleman purchased the chainring from a manufacturer located in CUSMA country B. Under the laws of CUSMA country A that implement the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade, 1994, the customs value of the chainring was based on the price actually paid or payable by the middleman to the manufacturer. Producer A uses the chainring to produce a bicycle and exports the bicycle to CUSMA country C. The bicycle is subject to a regional value content requirement.

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Marginal note:Eligible vehicles

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• Marginal note:Transitional

  (7) Vehicles that are presently covered under the alternative staging regime described in Article 403.6 of the North American Free Trade Agreement as of November 30, 2019 may continue to use this regime, including any regulations that were in effect prior to entry into force of the Agreement, according to each CUSMA country’s approval process for use of the alternative staging regime. After the expiration of the period under the Article 403.6 alternative staging period, such vehicles will be eligible for preferential treatment under the requirements described in subsection (4), until the end of the alternative staging period described in subsection (2). For greater certainty, such vehicles will also be eligible for preferential tariff treatment under the other rules of origin set forth in these Regulations.

Marginal note:Passenger vehicle, light truck or heavy truck

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• (6) A vehicle producer must calculate the value of steel and aluminum purchases in subsection (1) using

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  • (b) for steel or aluminum that is self-produced,

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    • (ii) an amount equivalent to the profit added in the normal course of trade or equal to the profit that is usually reflected in the sale of goods of the same class or kind as the self-produced material that is being valued.

12 The following definitions apply in this Part.

marque

marque  means the trade name used by a separate marketing division of a motor vehicle assembler. (marque)