Page 33 - Regional Comprehensive Economic Partnership (RCEP)

the rights to exploit such exclusive economic zone, and in in paragraph 1 to all production undertaken and value added to a
2
case of other goods, that Party or person of that Party has good within the Parties. The Parties shall conclude the review
rights to exploit such seabed and subsoil beneath the within five years of the date of its commencement, unless the
seabed, in accordance with international law; Parties agree otherwise.

(g) goods of sea-fishing and other marine life taken by vessels

of that Party from the high seas in accordance with Article 3.5: Calculation of Regional Value Content
international law;
1. The regional value content of a good, specified in Annex 3A
(h) goods processed or made on board any factory ships of (Product-Specific Rules), shall be calculated by using either of the
that Party, exclusively from the goods referred to in following formulas:
subparagraph (f) or (g);
(a) Indirect/Build-Down Formula
(i) goods which are:
FOB – VNM
(i) waste and scrap derived from production or RVC = _____________ x 100
consumption there, provided that such goods are fit
only for disposal, for the recovery of raw materials, FOB
or for recycling purposes; or
or
(ii) used goods collected there, provided that such
goods are fit only for disposal, for the recovery of
raw materials, or for recycling purposes; and (b) Direct/Build-Up Formula

(j) goods obtained or produced there solely from goods
referred to in subparagraphs (a) through (i), or from their Direct Direct
derivatives. Labour Overhead Other
RVC = VOM + Cost + Cost + Profit + Cost
____________________________________ x 100
Article 3.4: Cumulation
FOB
1. Unless otherwise provided in this Agreement, goods and
materials which comply with the origin requirements provided in where:
Article 3.2 (Originating Goods), and which are used in another
Party as materials in the production of another good or material, RVC is the regional value content of a good, expressed as a
shall be considered as originating in the Party where working or percentage;
processing of the finished good or material has taken place.
FOB is the FOB value as defined in subparagraph (e) of Article
2. The Parties shall commence a review of this Article on the date of 3.1 (Definitions);
entry into force of this Agreement for all signatory States. This
review will consider the extension of the application of cumulation VOM is the value of originating materials, parts, or produce
acquired or self-produced, and used in the production of the good;

2 For the purposes of determining the origin of goods of sea-fishing and other marine VNM is the value of non-originating materials used in the
life, “rights to exploit” in this subparagraph include those rights of access to the fisheries production of the good;
resources of a coastal State, as accruing from any agreements or arrangements
between a Party and the coastal State.

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