Regional value content
Also called: RVC · value-added rule
An origin criterion requiring that a minimum share of a product's value come from the free trade area, calculated with methods such as transaction value, net cost or build-up and build-down formulas. It is common in US agreements such as USMCA and appears in some EU and UK agreements.
In practice
RVC results move with prices and exchange rates, so producers should recheck calculations when costs change.
USA
EU
UKRelated terms
- Product-specific rules of origin
- The rules listed by HS chapter or heading in an annex to a trade agreement that state what processing is needed for a product to originate. Typical…
- Change in tariff classification
- An origin criterion requiring that non-originating materials be classified in a different chapter, heading or subheading from the final product,…
- USMCA
- The free trade agreement between the United States, Mexico and Canada, in force since 1 July 2020, replacing NAFTA. Its origin rules include regional…
- Ex-works price (origin)
- In EU-style origin rules, the price paid for the product to the manufacturer in whose undertaking the last working or processing was carried out,…