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titulo	Article 403. Automotive Goods
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contenido	Article 403. Automotive Goods 1. For purposes of calculating the regional value content under the net cost method set out in Article 402(3) --660-Art. 402-- for: A good that is a motor vehicle provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.90, 8704.21 or 8704.31, or A good provided for in the tariff provisions listed in Annex 403.1 --660-Anexo 403.1-- where the good is subject to a regional value-content requirement and is for use as original equipment in the production of a good provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles for the transport of 15 or fewer persons), or subheading 8702.xx, 8703.21 through 8703.90, 8704.21 or 8704.31, The value of non-originating materials used by the producer in the production of the good shall be the sum of the values of non-originating materials, determined in accordance with Article 402(9) --660-Art. 402-- at the time the non-originating materials are received by the first person in the territory of a Party who takes title to them, that are imported from outside the territories of the Parties under the tariff provisions listed in Annex 403.1 --660-Anexo 403.1-- and that are used in the production of the good or that are used in the production of any material used in the production of the good. 2. For purposes of calculating the regional value content under the net cost method set out in Article 402(3) --660-Art. 402-- for a good that is a motor vehicle provided for in heading 87.01, tariff item 8702.10.aa or 8702.90.aa (vehicles for the transport of 16 or more persons), subheading 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or heading 87.05 or 87.06, or for a component identified in Annex 403.2 --660-Anexo 403.2-- for use as original equipment in the production of the motor vehicle, the value of non-originating materials used by the producer in the production of the good shall be the sum of: For each material used by the producer listed in Annex 403.2 --660-Anexo 403.2--, whether or not produced by the producer, at the choice of the producer and determined in accordance with Article 402 --660-Art. 402--, either The value of such material that is non originating, or The value of non-originating materials used in the production of such material; and The value of any other non-originating material used by the producer that is not listed in Annex 403.2 --660-Anexo 403.2--, determined in accordance with Article 402 --660-Art. 402--. 3. For purposes of calculating the regional value content of a motor vehicle identified in paragraph 1 or 2, the producer may average its calculation over its fiscal year, using any one of the following categories, on the basis of either all motor vehicles in the category or only those motor vehicles in the category that are exported to the territory of one or more of the other Parties: The same model line of motor vehicles in the same class of vehicles produced in the same plant in the territory of a Party; The same class of motor vehicles produced in the same plant in the territory of a Party; The same model line of motor vehicles produced in the territory of a Party; or If applicable, the basis set out in Annex 403.3 --660-Anexo 403.3--. 4. For purposes of calculating the regional value content for any or all goods provided for in a tariff provision listed in Annex 403.1 --660-Anexo 403.3--, or a component or material identified in Annex 403.2 --660-Anexo 403.2--, produced in the same plant, the producer of the good may: Average its calculation Over the fiscal year of the motor vehicle producer to whom the good is sold, Over any quarter or month, or Over its fiscal year, if the good is sold as an aftermarket part; Calculate the average referred to in subparagraph (a) separately for any or all goods sold to one or more motor vehicle producers; or With respect to any calculation under this paragraph, calculate separately those goods that are exported to the territory of one or more of the Parties. 5. Notwithstanding Annex 401 --660-Anexo 401--, and except as provided in paragraph 6, the regional value-content requirement shall be: For a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 56 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 62.5 percent under the net cost method, for A good that is a motor vehicle provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.90, 8704.21 or 8704.31, and A good provided for in heading 84.07 or 84.08, or subheading 8708.40, that is for use in a motor vehicle identified in subparagraph (a)(i); and For a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 55 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 60 percent under the net cost method, for A good that is a motor vehicle provided for in a tariff item 8702.10.aa or 8702.90.aa (vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.21 through 8703.90, 8704.21 or 8704.31, and A good provided for in heading 84.07 or 84.08 or subheading 8708.40 that is for use in a motor vehicle identified in subparagraph (b)(i), and Except for a good identified in subparagraph (a)(ii) or provided for in subheading 8482.10 through 8482.80, 8483.20 or 8483.30, a good identified in Annex 403.1 --660-Anexo 403.1-- that is subject to a regional value content requirement and that is for use in a motor vehicle identified in subparagraphs (a)(i) or (b)(i). 6. The regional value-content requirement for a motor vehicle identified in Article 403(1) --660-Art. 403-- or 403(2) --660-Art. 403-- shall be: 50 percent for five years after the date on which the first motor vehicle prototype is produced in a plant by a motor vehicle assembler, if It is a motor vehicle of a class, or marque, or, except for a motor vehicle identified in Article 403(2) --660-Art. 403--, size category and underbody, not previously produced by the motor vehicle assembler in the territory of any of the Parties, The plant consists of a new building in which the motor vehicle is assembled, and The plant contains substantially all new machinery that is used in the assembly of the motor vehicle; or 50 percent for two years after the date on which the first motor vehicle prototype is produced at a plant following a refit, if it is a different motor vehicle of a class, or marque, or, except for a motor vehicle identified in Article 403(2) --660-Art. 403--, size category and underbody, than was assembled by the motor vehicle assembler in the plant before the refit.
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Article 403. Automotive Goods

1. For purposes of calculating the regional value content under the net cost method set out in Article 402(3) --660-Art. 402-- for:

A good that is a motor vehicle provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.90, 8704.21 or 8704.31, or

A good provided for in the tariff provisions listed in Annex 403.1 --660-Anexo 403.1-- where the good is subject to a regional value-content requirement and is for use as original equipment in the production of a good provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles for the transport of 15 or fewer persons), or subheading 8702.xx, 8703.21 through 8703.90, 8704.21 or 8704.31,

The value of non-originating materials used by the producer in the production of the good shall be the sum of the values of non-originating materials, determined in accordance with Article 402(9) --660-Art. 402-- at the time the non-originating materials are received by the first person in the territory of a Party who takes title to them, that are imported from outside the territories of the Parties under the tariff provisions listed in Annex 403.1 --660-Anexo 403.1-- and that are used in the production of the good or that are used in the production of any material used in the production of the good.

2. For purposes of calculating the regional value content under the net cost method set out in Article 402(3) --660-Art. 402-- for a good that is a motor vehicle provided for in heading 87.01, tariff item 8702.10.aa or 8702.90.aa (vehicles for the transport of 16 or more persons), subheading 8704.10, 8704.22, 8704.23, 8704.32 or 8704.90, or heading 87.05 or 87.06, or for a component identified in Annex 403.2 --660-Anexo 403.2-- for use as original equipment in the production of the motor vehicle, the value of non-originating materials used by the producer in the production of the good shall be the sum of:

For each material used by the producer listed in Annex 403.2 --660-Anexo 403.2--, whether or not produced by the producer, at the choice of the producer and determined in accordance with Article 402 --660-Art. 402--, either

The value of such material that is non originating, or

The value of non-originating materials used in the production of such material; and

The value of any other non-originating material used by the producer that is not listed in Annex 403.2 --660-Anexo 403.2--, determined in accordance with Article 402 --660-Art. 402--.

3. For purposes of calculating the regional value content of a motor vehicle identified in paragraph 1 or 2, the producer may average its calculation over its fiscal year, using any one of the following categories, on the basis of either all motor vehicles in the category or only those motor vehicles in the category that are exported to the territory of one or more of the other Parties:

The same model line of motor vehicles in the same class of vehicles produced in the same plant in the territory of a Party;

The same class of motor vehicles produced in the same plant in the territory of a Party;

The same model line of motor vehicles produced in the territory of a Party; or

If applicable, the basis set out in Annex 403.3 --660-Anexo 403.3--.

4. For purposes of calculating the regional value content for any or all goods provided for in a tariff provision listed in Annex 403.1 --660-Anexo 403.3--, or a component or material identified in Annex 403.2 --660-Anexo 403.2--, produced in the same plant, the producer of the good may:

Average its calculation

Over the fiscal year of the motor vehicle producer to whom the good is sold,

Over any quarter or month, or

Over its fiscal year, if the good is sold as an aftermarket part;

Calculate the average referred to in subparagraph (a) separately for any or all goods sold to one or more motor vehicle producers; or

With respect to any calculation under this paragraph, calculate separately those goods that are exported to the territory of one or more of the Parties.

5. Notwithstanding Annex 401 --660-Anexo 401--, and except as provided in paragraph 6, the regional value-content requirement shall be:

For a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 56 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 62.5 percent under the net cost method, for

A good that is a motor vehicle provided for in tariff item 8702.10.bb or 8702.90.bb (vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.90, 8704.21 or 8704.31, and

A good provided for in heading 84.07 or 84.08, or subheading 8708.40, that is for use in a motor vehicle identified in subparagraph (a)(i); and

For a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 55 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 60 percent under the net cost method, for

A good that is a motor vehicle provided for in a tariff item 8702.10.aa or 8702.90.aa (vehicles for the transport of 15 or fewer persons), or subheading 8703.21 through 8703.21 through 8703.90, 8704.21 or 8704.31, and

A good provided for in heading 84.07 or 84.08 or subheading 8708.40 that is for use in a motor vehicle identified in subparagraph (b)(i), and

Except for a good identified in subparagraph (a)(ii) or provided for in subheading 8482.10 through 8482.80, 8483.20 or 8483.30, a good identified in Annex 403.1 --660-Anexo 403.1-- that is subject to a regional value content requirement and that is for use in a motor vehicle identified in subparagraphs (a)(i) or (b)(i).

6. The regional value-content requirement for a motor vehicle identified in Article 403(1) --660-Art. 403-- or 403(2) --660-Art. 403-- shall be:

50 percent for five years after the date on which the first motor vehicle prototype is produced in a plant by a motor vehicle assembler, if

It is a motor vehicle of a class, or marque, or, except for a motor vehicle identified in Article 403(2) --660-Art. 403--, size category and underbody, not previously produced by the motor vehicle assembler in the territory of any of the Parties,

The plant consists of a new building in which the motor vehicle is assembled, and

The plant contains substantially all new machinery that is used in the assembly of the motor vehicle; or

50 percent for two years after the date on which the first motor vehicle prototype is produced at a plant following a refit, if it is a different motor vehicle of a class, or marque, or, except for a motor vehicle identified in Article 403(2) --660-Art. 403--, size category and underbody, than was assembled by the motor vehicle assembler in the plant before the refit.

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