### Question
How is the "net cost" defined?


### Answer
The term **net cost** is defined in *19 U.S.C. § 4531* as follows -

> total cost minus sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and nonallowable interest costs that are included in the total cost

#### Citation:
  - *19 U.S.C. § 4531*
  - Heading: **CHAPTER 29-UNITED STATES&ndash;MEXICO&ndash;CANADA AGREEMENT IMPLEMENTATION > SUBCHAPTER II-CUSTOMS PROVISIONS**

