8Value of goods that are originating materials or non‑originating materials

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

(1) For the purposes of subsection 153ZQB(2) of the Act, this section 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 originating materials acquired in a Party, or produced in a Party, 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 on the assumption that those materials had been imported into the Party by the producer of the goods; (b) for non‑originating materials imported into a Party—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; (c) for non‑originating materials acquired in a Party by the producer of the goods—the earliest ascertainable price paid or payable for the materials; (d) for non‑originating materials produced in a Party 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) For the purposes of paragraph (2)(b), in working out the value of particular non‑originating materials, the following must be included: (a) the cost of freight of the non‑originating materials to the port or place of entry in the Party; (b) the cost of insurance related to that freight. (4) For the purposes of paragraph (2)(b), (c) or (d), in working out the value of particular non‑originating materials, the following may be deducted: (a) the costs of freight, insurance, packing and other transport‑related costs incurred in transporting the non‑originating materials to the producer of the goods; (b) duties, taxes and customs brokerage fees on the non‑originating materials that: (i) have been paid in a Party; 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.