CCRFTA Rules of Origin Regulations (SOR/2002-395)

4 (1) Except as provided in subsections (2) and (3), the regional value content of a good shall be calculated on the basis of the following transaction value method:

(2) For an automotive good of headings 87.01 through 87.02, subheadings 8703.21 through 8703.90 or headings 87.04 through 87.08, the regional value content shall be calculated on the basis of the following net cost method:

(3) For an automotive good of subheadings 8407.31 through 8407.34 or subheading 8703.10, the regional value content of a good shall be calculated, at the choice of the exporter or producer of the good, on the basis of either the transaction value method set out in subsection (1) or the net cost method set out in subsection (2).

(4) For purposes of calculating the regional value content of a good under subsection (1) or (2), the value of non-originating materials used by a producer in the production of the good shall not include

• (a) the value of any non-originating materials used by another producer in the production of originating materials that are subsequently acquired and used by the producer of the good in the production of that good; or

• (b) the value of any non-originating materials used by the producer in the production of an originating intermediate material.

(5) For purposes of subsection (4), where an originating intermediate material is used by the producer of the good with non-originating materials (whether or not those non-originating materials are produced by that producer) in the production of the good, the value of those non-originating materials shall be included in the value of non-originating materials.

(6) For purposes of subsection (2), the net cost of a good may be calculated, at the choice of the producer of the good, by

• (a) calculating the total cost incurred with respect to all goods produced by that producer, subtracting any excluded costs that are included in that total cost and reasonably allocating the remainder to the good;

• (b) calculating the total cost incurred with respect to all goods produced by that producer, reasonably allocating that total cost to the good and subtracting any excluded costs that are included in the amount allocated to that good; or

• (c) reasonably allocating each cost that forms part of the total cost incurred with respect to the good so that the aggregate of those costs does not include any excluded costs.

(7) For purposes of calculating net cost under subsection (6), excluded costs that are included in the value of a material that is used in the production of the good shall not be subtracted from or otherwise excluded from the total cost.