Home Acts & Rules Customs Origin of Goods - Rules Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Partnership Agreement between the Republic of India and Japan) Rules, 2011 This
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Rule 6 - Calculation of qualifying value content. - Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Partnership Agreement between the Republic of India and Japan) Rules, 2011Extract 6. Calculation of qualifying value content. - For the purposes of calculating the qualifying value content of goods, one or the other of the following formulas shall be applied,- (a) Q.V.C.= F.O.B-V.N.M x 100 F.O.B (b) Q.V.C = (V.O.M + Direct Labour Cost + Direct Overhead Cost + Profit) x 100 F.O.B Explanation 1.- For the purpose of calculating the qualifying value content of a good, the Generally Accepted Accounting Principles in the exporting Party shall be applied. Explanation 2. - For the purposes of this rule,- (a) F.O.B. shall be the value,- (i) of a good payable by the buyer of the good to the seller of the good, regardless of the mode of shipment, not including any internal excise taxes reduced, exempted, or repaid when the good is exported; or (ii) adjusted to the first ascertainable price paid for a good from the buyer to the producer of the good, if there is free-on-board value of the good, but it is unknown and cannot be ascertained; or (iii) determined in accordance with Articles 1 to 8 of the Agreement on Customs Valuation , if there is no free-on-board value of a good: Provided that in applying the agreement on customs valuation to determine the value of a good or non-originating material, the agreement on customs valuation shall apply mutatis mutandis to domestic transactions or to the cases where there is no domestic transaction of the good or non-originating material. (b) Q.V.C. is the qualifying value content of a good, expressed as a percentage; (c) V.N.M. is the value of non-originating materials used in the production of a good ; (d) V.O.M. is the value of originating material used in the production of the good. Explanation 3. - For the purposes of this rule, the value of a material used in a production of a good in a Party,- (a) shall be customs value (CIF value) of the imported good in accordance with the agreement on customs valuation including freight and insurance where appropriate, packing and all other costs incurred in transporting the material to the port of importation in the Party where the producer of the good is located: Provided that in applying the agreement on customs valuation to determine the value of a good or non-originating material, the agreement on customs valuation shall apply mutatis mutandis to domestic transactions or to the cases where there is no domestic transaction of the good or non- originating material; or (b) shall be the first ascertainable price paid for the material in the Party, but may exclude all the costs incurred in the Party in transporting the material from the warehouse of the supplier of the material to the place where the producer is located such as freight, insurance and packing as well as any other known and ascertainable cost incurred in the Party.
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