19 C.F.R. § 10.455 Value of materials.
Title 19 - Customs Duties
(a) Calculating the regional value content. For purposes of calculating the regional value content of a good under General Note 26(n), HTSUS, and for purposes of applying the de minimis (see §10.459) provisions of subdivision (e) of the note, the value of a material is: (1) In the case of a material imported by the producer of the good, the adjusted value of the material; (2) In the case of a material acquired in the territory where the good is produced, except for a material to which paragraph (a)(3) of this section applies, the producer's price actually paid or payable for the material; (3) In the case of a material provided to the producer without charge, or at a price reflecting a discount or similar reduction, the sum of— (i) All expenses incurred in the growth, production or manufacture of the material, including general expenses, and (ii) A reasonable amount for profit; or (4) In the case of a material that is self-produced, the sum of— (i) All expenses incurred in the production of the material, including general expenses, and (ii) A reasonable amount for profit. (b) Adjustments to value. The value of materials may be adjusted as follows: (1) For originating materials, the following expenses, if not included under paragraph (a) of this section, may be added to the value of the originating material: (i) The costs of freight, insurance, packing and all other costs incurred in transporting the material within or between the territory of Chile, the United States, or both, to the location of the producer; (ii) Duties, taxes and customs brokerage fees on the material paid in the territory of Chile or of the United States, or both, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; 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; and (2) For non-originating materials, if included under paragraph (a) of this section, the following expenses may be deducted from the value of the non-originating material: (i) The costs of freight, insurance, packing and all other costs incurred in transporting the material within or between the territory of Chile, the United States, or both, to the location of the producer; (ii) Duties, taxes and customs brokerage fees on the material paid in the territory of Chile or of the United States, or both, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; (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-products; and (iv) The cost of originating materials used in the production of the non-originating material in the territory of Chile or of the United States. (c) Accounting method. Any cost or value referenced in General Note 26(n), HTSUS and this subpart, must be recorded and maintained in accordance with the generally accepted accounting principles applicable in the territory of the country in which the good is produced (whether Chile or the United States).
Title 19: Customs Duties
PART 10—ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC.
Subpart H—United States-Chile Free Trade Agreement
Rules of Origin
§ 10.455 Value of materials.
