Common use of Intermediate Materials Clause in Contracts

Intermediate Materials. 1. For purposes of calculating regional value content under Article 6-04, the producer of a good may designate as an intermediate material any self-produced material used in the production of the good provided that, if that intermediate material is subject to a regional value content requirement, no other self-produced material subject to the regional value content requirement used in the production of that intermediate material may itself be designated by the producer as an intermediate material. 2. The value of an intermediate material will be: a) the total cost incurred in respect of all goods produced by the producer of the good, which can be reasonably allocated to that intermediate material in accordance with the provisions of the annex to article 6-01; or