Packing material cost rules set valuation, assignment, and disclosure principles for cost statements and product costing. Uniform principles are prescribed for determining packing material cost through classification, measurement, assignment, presentation and disclosure in cost statements. Packing materials are treated as primary or secondary, with valuation rules for purchased, self-manufactured, imported and reusable materials, including treatment of duties, freight, subsidies, finance costs, abnormal costs, normal losses and scrap. Packing material costs are traced or assigned to cost objects on reasonable bases, with primary packing forming part of production cost and secondary packing forming part of distribution overheads.