Rules of Origin  
     
 

Under the CSFTA, products imported by a Party shall be deemed to be originating and eligible for preferential concessions if they conform to the origin requirements under any one of the following:
(a) products which are wholly obtained;
(b) products not wholly obtained or produced in the territory of the exporting Party, provided that said products are eligible under Regional Value Content, Cumulative Rule of Origin and Product Specific Rules.

The percentage of regional value content shall not be less than 40%, except for the goods listed in Annex 2 (Product Specific Rules).

The regional value content of a good shall be calculated on the basis of the following method:

                  V – VNM
RVC  =  ––––––––––– x 100
                       V

where:
RVC means the regional value content expressed as a percentage;

V means the value of the good, adjusted on an FOB basis; and

VNM shall be:
(i) the CIF value at the time of importation of the materials; or
(ii) the earliest ascertained price paid for the materials of undetermined origin in the territory of the Party where the working or processing takes place.