(a) calculate the total cost incurred with respect to all goods produced by that producer and then reasonably allocate the resulting cost to the intermediate material; or
(b) reasonably allocate to the intermediate material the individual costs that are part of the total cost incurred with respect to that intermediate material.
Article 403: Automotive Goods
1. Where applying the net cost method under Article 402(3) for purposes of calculating the regional value content of any one of the following goods:
(a) a motor vehicle provided for in subheadings 8702.xx (vehicles for the transport of 15 or fewer persons), 8703.21 through 8703.90, 8704.21 or 8704.31; or
(b) a good provided for in the tariff provisions listed in Annex 403.1 where the good is subject to a regional value-content requirement and is for use as original equipment in the production of a good provided for in subheadings 8703.21 through 8703.90, 8704.21 or 8704.31,
the value of non-originating materials used by the producer in the production of the good shall be the sum of the customs values of non-originating materials imported from outside the territories of the Parties under the tariff provisions listed in Annex 403.1.
2. (a) Where applying the net cost method under Article 402(3) with respect to a good identified in subparagraph (b), the producer of the good shall include in the value of non-originating materials used by the producer in the production of the good the sum of
(i) for each material used by the producer that is listed in Annex 403.2, at the choice of the producer, either
(A) the value of such material that is non- originating, or