(1) For the purposes of subsection 153ZKL(2) of the Act, the value of non-originating materials used in the production of goods is:
(a) for non-originating materials imported into the territory of a Party--the value of the non-originating materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994; or
(b) for non-originating materials acquired in the territory of a Party where the goods are produced--the earliest ascertainable price paid or payable for the non-originating materials in the territory of the Party.
(2) For the purposes of paragraph (1)(a), 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.
(3) For the purposes of paragraph (1)(a) or (b), in working out the value of particular non-originating materials, the following may be deducted:
(a) the costs of freight, insurance, packing and all other costs incurred in transporting the non-originating materials, within or between the territories of the Parties, to the producer of the goods;
(b) duties, taxes and customs brokerage fees on the non-originating materials that:
(i) have been paid in the territory of one or more of the Parties; 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 reusable scrap or by-products;
(d) the costs of processing incurred in the territory of one or more of the Parties in the production of the non-originating materials;
(e) the costs of originating materials used or consumed in the production of the non-originating materials in the territory of one or more of the Parties.