Which one of the following statements about Regional Value Content under NAFTA is NOT true?
A) The Regional Value Content of a good shall be calculated only on the basis of the net cost method if there is no transaction value for the good under section 2(1) of Schedule III.
B) The Regional Value Content of the good shall be calculated on the basis of either the transaction value method or the net cost method, at the choice of the exporter or producer.
C) The value of non-originating materials are deducted from the transaction value or net cost to determine Regional Value Content.
D) If the exporter selects the net cost method, but the good does not qualify, he/she may then recalculate under the transaction value method, if there is an acceptable transaction value.
E) The producer of a good may choose to treat any material used in the production of that good as non-originating.
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The Answer is: D
Citation: 19 CFR 181, Appendix, Part III, Section 6,(1), (2), (6),(7), (8).
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