“Produced in the beneficiary developing country” defined. For purposes of §§ 10.171 through 10.178, the words “produced in the beneficiary developing country” refer to the constituent materials of which the eligible article is composed which are either:

Wholly the growth, product, or manufacture of the beneficiary developing country; or

Substantially transformed in the beneficiary developing country into a new and different article of commerce.

Questionable origin. When the origin of an article either is not ascertainable or not satisfactorily demonstrated to the Center director, the article shall not be considered to have been produced in the beneficiary developing country.

Determination of cost or value of materials produced in the beneficiary developing country. (1) The cost or value of materials produced in the beneficiary developing country includes:

The manufacturer's actual cost for the materials;

When not included in the manufacturer's actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer's plant;

The actual cost of waste or spoilage (material list), less the value of recoverable scrap; and

Taxes and/or duties imposed on the materials by the beneficiary developing country, or an association of countries treated as one country, provided they are not remitted upon exportation.

Where the material is provided to the manufacturer without charge, or at less than fair market value, its cost or value shall be determined by computing the sum of:

All expenses incurred in the growth, production, manufacture or assembly of the material, including general expenses;

An amount for profit; and

Freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer's plant.