Common use of Value of Regional Content Clause in Contracts

Value of Regional Content. 1. Each Party shall provide that the regional value content of a good shall be calculated by the exporter or producer in accordance with the transaction value method set out in paragraph 2. 2. To calculate the regional content value of a good based on the transaction value method, the following formula shall be applied: VCR= [(VT-VMN) /VT]100 where RCV: regional content expressed as a percentage. VT: transaction value of an asset adjusted on the basis of F.O.B, except as provided in paragraph 6. VMN: value of the non-originating materials used by the producer in the production of the good determined in accordance with the provisions of Article 6-05. 3. Each Party shall provide that the transaction value of a good shall be calculated: (a) in accordance with the principles of Articles 1 and 8 of the Customs Valuation Code; or (b) where there is no transaction value or where the transaction value of the good cannot be determined in accordance with paragraphs 4 and 5, in accordance with the principles of Article 6.1 of the Customs Valuation Code, except paragraph 1 of the interpretative note to that Article. 4. For purposes of paragraph 3, there is no transaction value when the property is not the subject of a sale. 5. For purposes of Paragraph 3, the transaction value of the property may not be determined when: (a) there are restrictions on the transfer or use of the property by the purchaser except for those that: (i) imposed or required by the law or authorities of the Party in which the purchaser of the good is located; (ii) limit the geographic territory where the property may be resold; or (iii) do not appreciably affect the value of the property; (b) the sale or price is dependent on a condition or consideration the value of which cannot be determined in relation to the property; (c) directly or indirectly reverts to the seller any part of the proceeds of the resale or of any subsequent transfer or use of the property by the buyer, unless due adjustment can be made in accordance with the provisions of Article 8 of the Customs Valuation Code; or (d) the buyer and seller are related persons and the relationship between them influences the price, except as provided in Article 1.2 of the Customs Valuation Code.

Value of Regional Content. 1. Each Party shall provide that the regional value content of a good shall be calculated by the exporter or producer in accordance with the transaction value method set out in paragraph 2. 2. To calculate the regional content value of a good based on the transaction value method, the following formula shall be applied: where VCR= [(VT-VMN) /VT]100 where VMN)/VT]100 RCV: regional content expressed as a percentage. VT: transaction value of an asset adjusted on the basis of F.O.B, except as provided in paragraph 6. VMN: value of the non-originating materials used by the producer in the production of the good determined in accordance with the provisions of Article 6-05. 3. Each Party shall provide that the transaction value of a good shall be calculated: (a) in accordance with the principles of Articles 1 and 8 of the Customs Valuation Code; or (b) where there is no transaction value or where the transaction value of the good cannot be determined in accordance with paragraphs 4 and 5, in accordance with the principles of Article Article 6.1 of the Customs Valuation Code, except paragraph 1 of the interpretative note to that Article. 4. For purposes of paragraph 3, there is no transaction value when the property is not the subject of a sale. . 5. For purposes of Paragraph 3, the transaction value of the property may not be determined when: (a) there are restrictions on the transfer or use of the property by the purchaser except for those that: (i) imposed or required by the law or authorities of the Party in which the purchaser of the good is located; (ii) limit the geographic territory where the property may be resold; or or (iii) do not appreciably affect the value of the property; (b) the sale or price is dependent on a condition or consideration the value of which cannot be determined in relation to the property; (c) directly or indirectly reverts to the seller any part of the proceeds of the resale or of any subsequent transfer or use of the property by the buyer, unless due adjustment can be made in accordance with the provisions of Article 8 of the Customs Valuation Code; or (d) the buyer and seller are related persons and the relationship between them influences the price, except as provided in Article 1.2 of the Customs Valuation Code.