Common use of Regional Value Content Clause in Contracts

Regional Value Content. 1. Where Annex 2 (Product Specific Rules Schedule) refers to a regional value content requirement, the regional value content of that good shall be calculated using one of the following methods: RVC = V-VNM x 100 V or Build-up Method RVC = VOM x 100 V where: (a) RVC is the regional value content, expressed as a percentage; V is the value of the good, as provided in paragraph 2; (b) VNM is the value of non-originating material, as provided in paragraph 3, including materials of undetermined origin as provided in Article 3.12 (Calculation of the Value of a Good or Material); and (c) VOM is the value of originating material that is acquired or self- produced, and used or consumed by the producer in the production of the good as provided in Article 3.12 (Calculation of the Value of a Good or Material). 2. The value of a good referred to in paragraph 1 shall be: (a) for goods to be exported, the FOB value of the good determined pursuant to the Customs Valuation Agreement; or (b) for goods acquired within the territory of the Party, where the good is produced, the earliest ascertainable price paid or payable for the good, determined for domestic transactions pursuant to the Customs Valuation Agreement, mutatis mutandis. 3. The value of non-originating materials or materials of undetermined origin referred to in paragraph 1 shall be: (a) for imported materials, the CIF value of the material, determined pursuant to the Customs Valuation Agreement; or (b) for materials acquired within the territory of the Party where the good is produced, the earliest ascertainable price paid or payable for the non- originating materials in the territory of that Party, determined for domestic transactions pursuant to the Customs Valuation Agreement, mutatis mutandis.

Regional Value Content. 1. Where Annex 2 (Product Specific Rules Schedule) refers to a regional value content requirement, the regional value content of that good shall be calculated using one of the following methods: V - VNM RVC = V-VNM ---------------- V x 100 V or Build-up Method VOM RVC = VOM ---------------- V x 100 V where: (a) RVC is the regional value content, expressed as a percentage; ; (b) V is the value of the good, as provided in paragraph 2; (bc) VNM is the value of non-originating material, as provided in paragraph 3, including materials of undetermined origin as provided in Article 3.12 (Calculation of the Value of a Good or Material); and (cd) VOM is the value of originating material that is acquired or self- produced, and used or consumed by the producer in the production of the good as provided in Article 3.12 (Calculation of the Value of a Good or Material). 2. The value of a good referred to in paragraph 1 shall be: (a) for goods to be exported, the FOB value of the good determined pursuant to the Customs Valuation Agreement; or (b) for goods acquired within the territory of the Party, where the good is produced, the earliest ascertainable price paid or payable for the good, determined for domestic transactions pursuant to the Customs Valuation Agreement, mutatis mutandis. 3. The value of non-originating materials or materials of undetermined origin referred to in paragraph 1 shall be: (a) for imported materials, the CIF value of the material, determined pursuant to the Customs Valuation Agreement; or (b) for materials acquired within the territory of the Party where the good is produced, the earliest ascertainable price paid or payable for the non- originating materials in the territory of that Party, determined for domestic transactions pursuant to the Customs Valuation Agreement, mutatis mutandis.

Regional Value Content. 1. Where Annex 2 (Product Specific Rules Schedule) refers to a regional value content requirementExcept as provided in paragraph 5, each Party shall provide that the regional value content of that a good shall be calculated using one calculated, at the choice of the exporter or producer of the good, on the basis of either the transaction value method set out in paragraph 2 or the net cost method set out in paragraph 4 . 2. For purposes of calculating the regional value content of a good on the basis of the transaction value method, the following methodsformula shall be applied: RVC = V-TV - VNM x 100 V or Build-up Method RVC = VOM x 100 V where: (a) RVC is RVC= 1 0 0 TV where RVC: the regional value content, expressed as a percentage; V is the TV: transaction value of the goodgood adjusted to a X.X.X. xxxxx, except as provided in paragraph 2; (b) VNM is the 3 ; and VNM: value of non-originating material, as provided in paragraph 3, including materials of undetermined origin as provided in Article 3.12 (Calculation of the Value of a Good or Material); and (c) VOM is the value of originating material that is acquired or self- produced, and used or consumed by the producer in the production of the good as provided in determined pursuant to Article 3.12 (Calculation 3-05. 3. For purposes of paragraph 2, when the producer of the Value good does not export it directly, the transaction value of a Good or Material)the good shall be adjusted to the point where the buyer receives the good in the territory where the producer is located. 24. The For purposes of calculating the regional value content of a good referred to in paragraph 1 shall be: (a) for goods to be exportedon the basis of the net cost method, the FOB following formula shall be applied: NC - VNM NC where RVC: regional value content, expressed as a percentage; NC: net cost of the good; and VNM: value of non-originating materials used by the producer in the production of the good determined pursuant to Article 3-5. 5. Each Party shall provide that an exporter or producer shall calculate the regional value content of a good solely on the basis of the net cost method set out in paragraph 4 where: (a) there is no transaction value where the good is not the subject of a sale; (b) the transaction value of the good cannot be determined where there are restrictions on the disposition or use of the good by the buyer, other than restrictions that: (i) are imposed or required by law or by the public authorities of the Party where the buyer of the good is located; (ii) limit the geographical area in which the good may be resold; or (iii) do not substantially affect the value of the good; (c) the sale or price is subject to a condition or consideration for which a value cannot be determined with respect to the good; (d) part of the proceeds of any subsequent resale, disposal or use of the good by the buyer will accrue directly or indirectly to the seller, unless the proper adjustment pursuant to Article 8 of the Customs Valuation AgreementCode can be made; (e) the buyer and seller are related persons and their relationship between them influenced the price, except as provided in Article 1.2 of the Customs Valuation Code; (f) the good is sold by the producer to a related person and the volume, by units of quantity, of sales of identical or similar goods to related persons during the six-month period immediately preceding the month in which the producer sold the good exceeds 85 per cent of the producer's total sales of such goods during that period; (g) the exporter or producer chooses to accumulate the regional value content of the good in accordance with Article 3-08; or (h) the good is designated as an intermediate material under Article 3-07 and is subject to a regional value-content requirement. 6. Except for the goods specified in Article 3-15, a producer may average the regional value content for one or all the goods classified in the same subheading that he produces in the same plant or in several plants in the territory of one Party, on the basis of either all the goods produced by the producer or only those goods exported to the territory of the other Party: (a) in its fiscal year or period; or (b) for goods acquired within the territory in any period of the Partyone, where the good is producedtwo, the earliest ascertainable price paid three, four or payable for the good, determined for domestic transactions pursuant to the Customs Valuation Agreement, mutatis mutandissix months. 3. The value of non-originating materials or materials of undetermined origin referred to in paragraph 1 shall be: (a) for imported materials, the CIF value of the material, determined pursuant to the Customs Valuation Agreement; or (b) for materials acquired within the territory of the Party where the good is produced, the earliest ascertainable price paid or payable for the non- originating materials in the territory of that Party, determined for domestic transactions pursuant to the Customs Valuation Agreement, mutatis mutandis.