Document ID: chunk:federal_register_of_legislation:F2019C00057:schedule:2:p2
Version: federal_register_of_legislation:F2019C00057
Segment Type: schedule
Provision Reference: sch 2 (pt 2/3)
Character Range: 5303–8117

total overhead expense.
profit has the same meaning as it has in Article 5 of Chapter 3 of the Agreement.
 (2) Regional value content must be expressed as a percentage.

3.2  Indirect/build‑down method
 (1) For the purposes of subsection 153ZKE(6) of the Act, the regional value content of goods under the indirect/build‑down method is worked out using the formula:
where:
customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.
value of non‑originating materials means the value, worked out under Part 4, of the non‑originating materials used in the production of the goods.
 (2) Regional value content must be expressed as a percentage.

Part 4—Determination of value

4.1  Value of goods that are originating materials or non‑originating materials
 (1) For the purposes of subsection 153ZKB(3) of the Act, this regulation explains how to work out the value of originating materials or non‑originating materials used in the production of goods.
 (2) The value of the materials is as follows:
 (a) for non‑originating materials imported into a Party by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;
 (b) for originating materials acquired, or produced, by the producer of the goods—the value of the materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 on the assumption that those materials had been imported into a Party by the producer of the goods;
 (c) for non‑originating materials acquired by the producer of the goods—the earliest ascertained price paid for the materials by that producer.
 (3) For the purposes of paragraph (2)(a), in working out the value of particular non‑originating materials, the following must be included:
 (a) the cost of freight of the non‑originating materials to the port or place of entry into the Party;
 (b) the cost of insurance related to that freight.

4.2  Value of accessories, spare parts, tools or instructional or other information materials
  If paragraphs 153ZKE(7)(a), (b), (c), (d) and (e) of the Act are satisfied in relation to goods:
 (a) the value of the accessories, spare parts, tools or instructional or other information materials must be taken into account for the purposes of working out the regional value content of the goods under Part 3; and
 (b) if the accessories, spare parts, tools or instructional or other information materials are originating materials—for the purposes of regulations 3.1 and 4.1, those accessories, spare parts, tools or instructional or other information materials are taken to be originating materials used in the production of the goods; and
 (c) if