(ii) refined sugar originating in the territory of the
United States that has been refined from raw sugar
previously produced within, and exported from, the
territory of Mexico; and

(c) imports qualifying for duty-free treatment pursuant to subparagraphs (a) and (b) of this paragraph shall not be subject to, or counted under, any quota of the importing Party.

Schedule 704.2(I)(B)(3)

Net Production Surplus Determination

1. Methodology

(a) The size of a Party's net production surplus, shall be
determined in accordance with the following formula:

(i) If a net production surplus has not been projected
for any previous year, the formula shall be:

NPS = (PPy - CPy)

(ii) If a Party is projected to be a net surplus producer and has been projected to be a net surplus producer in a previous year, the Party's projected net production surplus shall be adjusted, to account for an underestimate or overestimate, as follows:

NPS = (PPy - CPy) - ((PPys - CPys) - (PAys - CAys))