Common use of Sufficient working or processing Clause in Contracts

Sufficient working or processing. 1. For the purposes of paragraph (b) of Article 3.2, a good which is not wholly obtained in a Party shall be deemed to have undergone sufficient working or processing in the exporting Party and considered originating there when the conditions laid down in the list in Annex 3A on Product Specific Rules of Origin (hereinafter referred to as “PSR”) for the concerned good are met. 2. The Qualifying Value Content (hereinafter referred to as “QVC”) of a good, specified in the PSR (Annex 3A), shall be calculated by using the following formula: (a) 𝑄𝑉𝐶 = 𝐸𝑥𝑊𝑜𝑟𝑘𝑠 𝑝𝑟𝑖𝑐𝑒−𝑉.𝑁.𝑀 ∗ 100 where: (i) Ex-Works price refers to the price paid for the good ex- works to the manufacturer in the Parties in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the good obtained is exported; (ii) V.N.M. refers to the Customs value of the non-originating materials at the time of importation including the cost of transport and insurance incurred in transporting the material to the destination port in the importing Party, or the earliest ascertained price paid or payable for the materials of undetermined origin 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 supplier’s warehouse to the producer’s location.