Common use of Qualifying Value Content Clause in Contracts

Qualifying Value Content. 1. For the purposes of subparagraph (c) of Article 3.2, the qualifying value content of a good shall be calculated on the basis of one or the other of the following methods: (a) Method based on value of non-originating materials (“Build-down method”) Q.V.C. = F.O.B. – V.N.M. x 100 F.O.B. (b) Method based on value of originating materials (“Build-up method”) Q.V.C. = V.O.M. + Direct Labor Cost + Direct Overhead Cost + Profit x 100 Where:

Qualifying Value Content. 1. For the purposes of subparagraph (c) of Article 3.2, the qualifying value content of a good shall be calculated on the basis of one or the other of the following methods: : (a) Method based on value of non-originating materials (“"Build-down method”") Q.V.C. = F.O.B. – V.N.M. Q.V.C. = x 100 F.O.B. F.O.B. (b) Method based on value of originating materials (“"Build-up method”") Q.V.C. = V.O.M. + Direct Labor Cost + Direct Overhead Cost + Profit Q.V.C. = x 100 F.O.B. Where: