Common use of Value Added Content Clause in Contracts

Value Added Content. For the purposes of this Chapter and product specific rules specified in Annex 3 to this Agreement, the formula for calculating value added content (hereinafter referred to as “VAC”) shall be: FOB value – Value of Non-Originating Materials FOB value x 100% where the value of non-originating materials shall be: a) CIF value of the materials at the time of importation to a Party; or b) the earliest ascertained price paid or payable for non-originating materials in the territory of the Party where the working or processing takes place. When, in the territory of a Party, the producer of the goods acquires non- originating materials within such Party, the value of such materials shall not include freight, insurance, packing costs and any other costs incidental to the transport of those materials from the location of the supplier to the location of production.

Value Added Content. For the purposes of this Chapter and product specific rules specified in Annex 3 to this Agreement, the formula for calculating value added content (hereinafter referred to as “VAC”) shall be: FOB value – Value of Non-Originating Materials FOB value x 100% where the value of non-originating materials shall be: a) CIF value of the materials at the time of importation to a Party; or b) the earliest ascertained price paid or payable for non-originating materials in the territory of the Party where the working or processing takes place. When, in the territory of a Party, the producer of the goods acquires non- non-originating materials within such Party, the value of such materials shall not include freight, insurance, packing costs and any other costs incidental to the transport of those materials from the location of the supplier to the location of production.