Common use of Qualifying Value Content Clause in Contracts

Qualifying Value Content. For the purposes of Article 4.2(c), the qualifying value content of a good shall be calculated as follows: QVC = FOB - VNM / FOB X 100 where QVC - is the qualifying value of a good content expressed as a percentage; FOB - is the Free On Board value of the final good; and VNM - is the CIF value of the non-originating materials at the time of importation or the earliest ascertained price paid or payable in the Party where the production takes place for all non-originating materials, parts or produce that are acquired by the producer in the production of the good. When the producer of a good acquires non-originating materials within that Party the value of such materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the . material from the suppliers warehouse to the producer's location.

Qualifying Value Content. For the purposes of Article 4.2(c), the qualifying value content of a good shall be calculated as follows: QVC = FOB - VNM / FOB X QVC = 100 where where: QVC - is the qualifying value of a good content expressed as a percentage; FOB - is the Free On Board value of the final good; and VNM - is the CIF value of the non-originating materials at the time of importation or the earliest ascertained price paid or payable in the Party where the production takes place for all non-originating materials, parts or produce that are acquired by the producer in the production of the good. When the producer of a good acquires non-originating materials within that Party the value of such materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the . material from the suppliers supplier’s warehouse to the producer's ’s location.