### Question
How is the "nonallowable interest costs" defined?


### Answer
The term **nonallowable interest costs** is defined in *19 U.S.C. § 3332* as follows -

> interest costs incurred by a producer as a result of an interest rate that exceeds the applicable Federal Government interest rate for comparable maturities by more than 700 basis points, determined pursuant to regulations implementing this section

#### Citation:
  - *19 U.S.C. § 3332*
  - Heading: **CHAPTER 21-NORTH AMERICAN FREE TRADE > SUBCHAPTER II-CUSTOMS PROVISIONS**

