Common use of Rules of Origin Rules Origin - a Clause in Contracts

Rules of Origin Rules Origin - a. Section of Article 4 (a) The good is wholly obtained or produced entirely in the territory of either Party as defined in article 4.26; (b) The good is produced in the territory of one or both parties exclusively from materials that qualify as originating in accordance with the provisions of this chapter; or (c) The good is produced in the territory of one or both parties using non-originating materials that conform to a change in tariff classification, a regional value content or other requirements as specified in annex 4.1. and the good complies with the other applicable provisions of this chapter. 1. The regional value content of the goods shall be calculated according to the following formula: [VCR (-) / vl = vmn mv) * 100 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 2. 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 4. 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. 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. 3. 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. 4. 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. 5. 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.