The term “aquaculture” means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates, and aquatic plants from seed stock such as eggs, fry, fingerlings, or larvae, by intervention in the rearing or growth processes to enhance production such as regular stocking, feeding, or protection from predators.
Fungible good or fungible material
The term “fungible good” or “fungible material” means a good or material, as the case may be, that is interchangeable with another good or material for commercial purposes and the properties of which are essentially identical to such other good or material.
Good wholly obtained or produced entirely in the territory of one or more USMCA countries
The term “good wholly obtained or produced entirely in the territory of one or more USMCA countries” means any of the following:
A mineral good or other naturally occurring substance extracted or taken from the territory of one or more USMCA countries.
A plant, plant good, vegetable, or fungus grown, cultivated, harvested, picked, or gathered in the territory of one or more USMCA countries.
A live animal born and raised in the territory of one or more USMCA countries.
A good obtained in the territory of one or more USMCA countries from a live animal.
An animal obtained by hunting, trapping, fishing, gathering, or capturing in the territory of one or more USMCA countries.
A good obtained in the territory of one or more USMCA countries from aquaculture.
A fish, shellfish, or other marine life taken from the sea, seabed, or subsoil outside the territory of one or more USMCA countries and outside the territorial sea of any country that is not a USMCA country by—
a vessel that is registered or recorded with a USMCA country and flying the flag of that country; or
a vessel that is documented under the laws of the United States.
A good produced on board a factory ship from goods referred to in subparagraph (G), if such factory ship—
is registered or recorded with a USMCA country and flies the flag of that country; or
is a vessel that is documented under the laws of the United States.
A good, other than a good referred to in subparagraph (G), that is taken by a USMCA country, or a person of a USMCA country, from the seabed or subsoil outside the territory of a USMCA country, if that USMCA country has the right to exploit such seabed or subsoil.
Waste and scrap derived from—
production in the territory of one or more USMCA countries; or
used goods collected in the territory of one or more USMCA countries, if such goods are fit only for the recovery of raw materials.
A good produced in the territory of one or more USMCA countries exclusively from goods referred to in any of subparagraphs (A) through (J), or from their derivatives, at any stage of production.
The term “indirect material” means a material used or consumed in the production, testing, or inspection of a good but not physically incorporated into the good, or a material used or consumed in the maintenance of buildings or the operation of equipment associated with the production of a good, including—
tools, dies, and molds;
spare parts and materials used or consumed in the maintenance of equipment or buildings;
lubricants, greases, compounding materials, and other materials used or consumed in production or to operate equipment or buildings;
gloves, glasses, footwear, clothing, safety equipment, and supplies;
equipment, devices, and supplies used for testing or inspecting the good;
catalysts and solvents; and
any other material that is not incorporated into the good, if the use of the material in the production of the good can reasonably be demonstrated to be a part of that production.
Nonoriginating good or nonoriginating material
The term “nonoriginating good” or “nonoriginating material” means a good or material, as the case may be, that does not qualify as originating under this section.
Originating good; originating material
The term “originating good” or “originating material” means a good or material, as the case may be, that qualifies as originating under this section.
The term “production” means—
growing, cultivating, raising, mining, harvesting, fishing, trapping, hunting, capturing, breeding, extracting, manufacturing, processing, or assembling a good; or
the farming of aquatic organisms through aquaculture.
The term “recovered material” means a material in the form of individual parts that are the result of—
the disassembly of a used good into individual parts; and
the cleaning, inspecting, testing, or other processing that is necessary for improvement to sound working condition of such individual parts.
The term “remanufactured good” means a good classified in the HTS under any of chapters 84 through 90 or under heading 9402, other than a good classified under heading 8418, 8509, 8510, 8516, or 8703 or subheading 8414.51, 8450.11, 8450.12, 8508.11, or 8517.11, that—
is entirely or partially composed of recovered materials;
has a life expectancy similar to, and performs in a manner that is the same as or similar to, such a good when new; and
has a factory warranty similar to that applicable to such a good when new.
The term “royalties” means payments of any kind, including payments under technical assistance or similar agreements, made as consideration for the use of, or right to use, a copyright, literary, artistic, or scientific work, patent, trademark, design, model, plan, or secret formula or secret process, excluding payments under technical assistance or similar agreements that can be related to a specific service such as—
personnel training, without regard to where the training is performed; or
if performed in the territory of one or more USMCA countries, engineering, tooling, die-setting, software design and similar computer services, or other services.
Sales promotion, marketing, and after-sales service costs
The term “sales promotion, marketing, and after-sales service costs” means the costs related to sales promotion, marketing, and after-sales service for the following:
Sales and marketing promotion, media advertising, advertising and market research, promotional and demonstration materials, exhibits, sales conferences, trade shows, conventions, banners, marketing displays, free samples, sales, marketing, and after-sales service literature (product brochures, catalogs, technical literature, price lists, service manuals, and sales aid information), establishment and protection of logos and trademarks, sponsorships, wholesale and retail charges, and entertainment.
Sales and marketing incentives, consumer, retailer, or wholesaler rebates, and merchandise incentives.
Salaries and wages, sales commissions, bonuses, benefits (such as medical, insurance, and pension benefits), traveling and living expenses, and membership and professional fees for sales promotion, marketing, and after-sales service personnel.
Product liability insurance.
Rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centers.
Payments by the producer to other persons for warranty repairs.
If the costs are identified separately for sales promotion, marketing, or after-sales service of goods on the financial statements or cost accounts of the producer, the following:
Property insurance premiums, taxes, utilities, and repair and maintenance of sales promotion, marketing, and after-sales service offices and distribution centers.
Recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales training of customers’ employees.
Office supplies for sales promotion, marketing, and after-sales service of goods.
Telephone, mail, and other communications.
The term “transaction value” means the price—
actually paid or payable for a good or material with respect to a transaction of a producer; and
adjusted in accordance with the principles set forth in paragraphs 1, 3, and 4 of article 8 of the Customs Valuation Agreement.