4.1Value of goods that are originating materials or non‑originating materials

4.1 Value of goods that are originating materials or non‑originating materials

(1) For the purposes of subsection 153YA(2) of the Act, this regulation explains how to work out the value of originating materials or non‑originating materials used in the production of goods. (2) The value of the materials is as follows: (a) for materials imported into the US by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994; (b) for materials acquired in the US—the value of those materials worked out under paragraph (a) on the assumption that those materials had been imported into the US; (c) for materials that are produced by the producer of the goods—the sum of: (i) all the costs incurred in the production of the materials, including general expenses; and (ii) an amount that is the equivalent of the amount of profit that the producer would make for the materials in the normal course of trade. (3) In working out the value of particular originating materials under subregulation (2), the following may be included, to the extent that they have not been taken into account under that subregulation: (a) the costs of freight, insurance, packing and all other costs incurred to transport the materials within the US, or between Australia and the US, to the location of the producer of the goods; (b) duties, taxes and customs brokerage fees on the materials that: (i) have been paid in either or both of the US and Australia; and (ii) have not been waived or refunded; and (iii) are not refundable or otherwise recoverable; including any credit against duties or taxes that have been paid or that are payable; (c) the costs of waste and spoilage resulting from the use of the materials in the production of the goods, reduced by the value of renewable scrap or by‑products. (4) In working out the value of particular non‑originating materials under subregulation (2), the following may be deducted if they were included under that subregulation: (a) the costs of freight, insurance, packing and all other costs incurred to transport the non‑originating materials within the US, or between Australia and the US, to the location of the producer of the goods; (b) duties, taxes and customs brokerage fees on the non‑originating materials that: (i) have been paid in either or both of the US and Australia; and (ii) have not been waived or refunded; and (iii) are not refundable or otherwise recoverable; including any credit against duties or taxes that have been paid or that are payable; (c) the costs of waste and spoilage resulting from the use of the non‑originating materials in the production of the goods, reduced by the value of renewable scrap or by‑products; (d) the costs of processing incurred in either or both of the US and Australia in the production of the non‑originating materials; (e) the costs of originating materials used in the production of the non‑originating materials in either or both of the US and Australia.