Common use of Qualifying Value Content Clause in Contracts

Qualifying Value Content. 1. For the purpose of Article 3.3, the fol owing formula for qualifying value content shal be applied: F.O.B. – N.Q.M. x 100% ≥ 35% F.O.B. where: (a) F.O.B. is the Free-On-Board value, which refers to the value of a good payable by the buyer to the sel er, regardless of the mode of shipment, not including any internal excise taxes, reduced, exempted, or repaid when the good is exported; and (b) N.Q.M. is the non-qualifying value of materials used by the producer in the production of the good, calculated in accordance with paragraph 2. 2. For the purpose of calculating the non-qualifying value of materials pursuant to paragraph 2(b), the fol owing formula shal be applied: N.Q.M. = T.V.M. – Q.V.M. where: (a) T.V.M. is the total value of materials; and (b) Q.V.M. is the qualifying value of materials, which is the value of the materials that can be attributed to one or both the Parties. 3. For the purpose of paragraph 2: (a) The qualifying value of materials shal be: (i) the total value of the material if the material satisfies the requirements of paragraph 3(b); or (i ) the value of the material that can be attributed to one or both of the Parties if the material does not satisfy the requirements of paragraph 3(b); and (b) For the purposes of paragraph 3(a), a material shal be considered to have satisfied the requirements of this paragraph if: (i) the content of the value of the material that can be attributed to one or both of the Parties is not less than 35% of the total value of the material; and (i ) the material has undergone its last production or operation in the territory of either Party. 4. The value of a material used in the production of a good in the territory of a Party shal be the C.I.F. value and shal be determined in accordance with the Agreement on Customs Valuation, or if this is not known and cannot be ascertained, the first ascertainable price paid for the material in the Party.

Qualifying Value Content. 1. For the purpose of Article 3.3, the fol owing following formula for qualifying value content shal shall be applied: F.O.B. – N.Q.M. x 100% ≥ 35% F.O.B. where: (a) F.O.B. is the Free-On-Board value, which refers to the value of a good payable by the buyer to the sel erseller, regardless of the mode of shipment, not including any internal excise taxes, reduced, exempted, or repaid when the good is exported; and (b) N.Q.M. is the non-qualifying value of materials used by the producer in the production of the good, calculated in accordance with paragraph 2. 2. For the purpose of calculating the non-qualifying value of materials pursuant to paragraph 2(b), the fol owing following formula shal shall be applied: N.Q.M. = T.V.M. – Q.V.M. where: (a) T.V.M. is the total value of materials; and (b) Q.V.M. is the qualifying value of materials, which is the value of the materials that can be attributed to one or both the Parties. 3. For the purpose of paragraph 2: (a) The qualifying value of materials shal shall be: (i) the total value of the material if the material satisfies the requirements of paragraph 3(b); or (i ii) the value of the material that can be attributed to one or both of the Parties if the material does not satisfy the requirements of paragraph 3(b); and (b) For the purposes of paragraph 3(a), a material shal shall be considered to have satisfied the requirements of this paragraph if: (i) the content of the value of the material that can be attributed to one or both of the Parties is not less than 35% of the total value of the material; and (i ii) the material has undergone its last production or operation in the territory of either Party. 4. The value of a material used in the production of a good in the territory of a Party shal shall be the C.I.F. value and shal shall be determined in accordance with the Agreement on Customs Valuation, or if this is not known and cannot be ascertained, the first ascertainable price paid for the material in the Party.