Common use of Qualifying Value Content Clause in Contracts

Qualifying Value Content. 1. For the purposes of subparagraph 1(c) of Article 29, the qualifying value content of a good shall be calculated on the basis of one or the other of the following methods: (a) Method based on value of non-originating materials (“Build-down method”) (b) Method based on value of originating materials (“Build-up method”) Where: QVC is the qualifying value content of the good, expressed as a percentage; TV is the transaction value of the good adjusted to F.O.B. basis, except as provided for in paragraph 2; VNM is the value of non-originating materials used by the producer in the production of the good determined pursuant to Article 31; and VOM is the value of originating materials used by the producer in the production of the good determined pursuant to Article 31. 2. In the event that there is no transaction value or the transaction value of the good is unacceptable under Article 1 of the Agreement on Customs Valuation, the value of the good shall be determined in accordance with Articles 2 through 7 of the Agreement on Customs Valuation.