Common use of The Regional Value Content Clause in Contracts

The Regional Value Content. 1. The regional value content of the goods shall be calculated according to the following formula: Vt-vmn VCR = _ × 100 Or Where: VCR is the regional value content, expressed as a percentage; VL is the transaction value of the good adjusted on a FOB basis, except as provided in paragraph 3. in the event that there is no value or cannot be determined according to the principles of article 1 of the Customs Valuation Agreement; the same shall be calculated in accordance with this Agreement and: Vmn is the transaction value of non-originating materials adjusted on a CIF basis, except as provided in paragraph 5. in the event that there is no value or cannot be determined according to the principles of article 1 of the Customs Valuation Agreement; the same shall be calculated in accordance with this Agreement. 2. For purposes of calculating the regional value content of the percentage shall be forty (40 per cent) for Ecuador and fifty percent (50%) for Chile. 3. Where a good is exported directly by the producer, the value shall be adjusted to the point at which the buyer receives the good within the territory of the Party where the producer is located. 4. All records of costs considered for the calculation of regional value content shall be recorded and maintained in accordance with generally accepted accounting principles applicable in the territory of the Party where the good is produced. 5. When the producer of a good acquires a non-originating material in the territory of a party is located, where the value of the non-originating material shall not include freight and insurance costs, packing and all other costs incurred in transporting the material from the warehouse of the supplier to the place where the producer is located. 6 6. For purposes of calculating the regional value content of the value of the non-originating materials Used by the producer in the production of a good shall not include the value of non-originating materials used by: a) Another producer in the production of an originating material that is acquired and used by the producer of the good in the production of that good; or b) The producer of the good in the production of an originating material of his own manufacture.

The Regional Value Content. 1. The regional value content of the goods shall be calculated according to the following formula: Vt-vmn VCR = _ × 100 Or Where: VCR VCR: is the regional value content, expressed as a percentage; VL MV: is the transaction value of the good adjusted on a FOB basis, except as provided in paragraph 32. in In the event that there is no value or cannot be determined according to the principles of article 1 of the Customs Valuation Agreement; the same shall be calculated in accordance with the principles and provisions of articles 2 to 7 of this Agreement andAgreement; and Vmn: Vmn is the transaction value of non-originating materials adjusted on a CIF basis, except as provided in paragraph 5. in In the event that there is no value or cannot be determined according to the principles of article 1 of the Customs Valuation Agreement; the same shall be calculated in accordance with the principles and provisions of articles 2 to 7 of this Agreement. 2. For purposes of calculating When the regional value content good is not a producer of the percentage shall be forty (40 per cent) for Ecuador and fifty percent (50%) for Chile. 3. Where a good is exported directly by the producerdirectly, the value shall be adjusted to the point at which the buyer receives the good within the territory of the Party where the producer is located. 3. When the origin is determined by the method of regional value content, the percentage required specified in annex 4.03. 4. All records of costs considered for the calculation of regional value content shall be recorded and maintained in accordance with generally accepted accounting principles applicable in the territory of the Party where the good is produced. 5. When the producer of a good acquires a non-originating material in the territory of a the party where it is located, where the value of the a non-originating material shall not include freight and insurance costs, packing and all other costs incurred in transporting the material from the warehouse of the supplier to the place where the producer is located. 6. 6. For purposes of calculating the regional value content of the value of the non-originating materials Used by the producer used in the production of a good shall not include the value of non-originating materials used by: a) Another producer in the production of an originating material that is acquired and used by the producer of the good an originating in the production of that good; or b) The producer of the good in the production of an originating material of his own manufacture.