134 STAT. 23 PUBLIC LAW 116–113—JAN. 29, 2020
(20) R
OYALTIES
.—The term ‘‘royalties’’ means payments of
any kind, including payments under technical assistance or
similar agreements, made as consideration for the use of, or
right to use, a copyright, literary, artistic, or scientific work,
patent, trademark, design, model, plan, or secret formula or
secret process, excluding payments under technical assistance
or similar agreements that can be related to a specific service
such as—
(A) personnel training, without regard to where the
training is performed; or
(B) if performed in the territory of one or more USMCA
countries, engineering, tooling, die-setting, software design
and similar computer services, or other services.
(21) S
ALES PROMOTION
,
MARKETING
,
AND AFTER
-
SALES
SERVICE COSTS
.—The term ‘‘sales promotion, marketing, and
after-sales service costs’’ means the costs related to sales pro-
motion, marketing, and after-sales service for the following:
(A) Sales and marketing promotion, media advertising,
advertising and market research, promotional and dem-
onstration materials, exhibits, sales conferences, trade
shows, conventions, banners, marketing displays, free sam-
ples, sales, marketing, and after-sales service literature
(product brochures, catalogs, technical literature, price
lists, service manuals, and sales aid information), establish-
ment and protection of logos and trademarks, sponsorships,
wholesale and retail charges, and entertainment.
(B) Sales and marketing incentives, consumer, retailer,
or wholesaler rebates, and merchandise incentives.
(C) Salaries and wages, sales commissions, bonuses,
benefits (such as medical, insurance, and pension benefits),
traveling and living expenses, and membership and profes-
sional fees for sales promotion, marketing, and after-sales
service personnel.
(D) Product liability insurance.
(E) Rent and depreciation of sales promotion, mar-
keting, and after-sales service offices and distribution cen-
ters.
(F) Payments by the producer to other persons for
warranty repairs.
(G) If the costs are identified separately for sales pro-
motion, marketing, or after-sales service of goods on the
financial statements or cost accounts of the producer, the
following:
(i) Property insurance premiums, taxes, utilities,
and repair and maintenance of sales promotion, mar-
keting, and after-sales service offices and distribution
centers.
(ii) Recruiting and training of sales promotion,
marketing, and after-sales service personnel, and after-
sales training of customers’ employees.
(iii) Office supplies for sales promotion, marketing,
and after-sales service of goods.
(iv) Telephone, mail, and other communications.
(22) S
ELF
-
PRODUCED MATERIAL
.—The term ‘‘self-produced
material’’ means a material that is produced by the producer
of a good and used in the production of that good.
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