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Regional Value Content

As well as a required tariff change, the specific rules of origin may ask that a Regional Value Content (RVC) be met. The RVC, which is always expressed as a percentage, may be figured out by using one of the following two formulas:

RVC = (Transaction Value – Value of Non-Originating Materials) X 100
Transaction Value


RVC = (Net Cost – Value of Non-Originating Materials) X 100
Net Cost

It is the exporters choice to use either the Transaction Value or Net Cost.

The transaction value must be at least 60% of the value.

The net cost must be at least 50% of the value.

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