RVC definition
Examples of RVC in a sentence
A regional value content requirement specified in this Chapter is calculated as follows: RVC = FOB - VNM / FOB x 100 where: RVC is the regional value content of a good, expressed as a percentage; FOB is defined in Article 3.1; and VNM is the value of non-originating materials, including materials of undetermined origin, used in the production of a good.
To meet the RVC requirement for certain passenger vehicle parts,402 materials from non-TPP countries used in their production must undergo one or more specified production operations 397 Industry representative, telephone interview by USITC staff, January 28, 2016; industry representative, telephone interview by USITC staff, January 29, 2016.
The ▇▇▇▇ for passenger vehicles under TPP would be simpler and easier for passenger vehicle manufacturers to meet than NAFTA ▇▇▇▇.398 Under the TPP ▇▇▇▇ for passenger vehicles, no change in tariff classification is required as long as the vehicle has an RVC of at least 45 percent using the net cost method or 55 percent using the build-down method.399 Under the TPP ▇▇▇▇ for vehicle parts, the RVC may be calculated using the net cost, build- up,400 or build-down methods.
The difference in the RVC required by TPP compared to NAFTA could lead vehicle producers in Canada or Mexico to source parts from low-cost countries outside of TPP.441 According to Commission estimates, however, U.S. parts exports to NAFTA would increase, likely due to increased demand for parts in those countries due to increased vehicle output.
The Regional Value Content (RVC) shall be calculated as follows: RV= Ex-works Price –VNM / Ex-works price x 100% Where: RVC is the regional value content, expressed as a percentage; and VNM is the value of the non-originating materials.