Product specific rules specify a certain RVC, it is required that the RVC of a good is calculated using the formula which has been set out. The goods which satisfy the Product Specific Rules (PSR) shall be considered as originating from that Party where working or processing of the product has taken place. The list of Product Specific Rules schedules for AFTA with dialogue can be downloaded from MITI's portal at
PSR: Change in Tariff Subheadings (CTSH)
Imported raw materials HS code : HS 8543.70
Finished product HS code : HS 8543.30
PSR: Change in subheadings 1806.31 is "RVC (40) or CC".
FOB Price: $4.00
Value of Non-originated Materials: $0.80
$4.00 – $0.80
QVC/RVC = _____________________ X 100%
PSR: Change in subheading 6307.90 is "RVC (40) or CTH"
Imported raw materials HS code : HS 6307.10
Finished product HS code : HS 6307.10
Value added measures
It defines the degree of transformation required in maximizing the amount of value which comes from non-originating countries while minimizing percentage of value. Qualifying Value Content (QVC) of a good shall be calculated as follows:
QVC = Qualifying Value Content
RVC = Regional Value Content
FOB = Free On Board
VNM = Value of Non-originating Materials
FOB – VNM
QVC/RVC = ______________________ X 100%
FOB price = Value of materials + Production cost + Profit + Other cost
The FOB shall be:
FOB price shall be determined by adding the value of materials, production cost, profit and other costs.
The VNM shall be:
The CIF value at the time of importation of the materials; or
The earliest ascertained price paid or payable for non-originating materials, including materials of undetermined origin in the territory of the Party where the working or processing takes place. When, in the territory of a Party, 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 incidental to the transport of those materials from the location of the supplier to the location of production.