Page 34 - Regional Comprehensive Economic Partnership (RCEP)

Direct Labour Cost includes wages, remuneration, and other
employee benefits; and

Direct Overhead Cost is the total overhead expense.

2. The value of goods under this Chapter shall be calculated, mutatis
mutandis, in accordance with Article VII of GATT 1994 and the
Customs Valuation Agreement. All costs shall be recorded and
maintained in accordance with the Generally Accepted
Accounting Principles applicable in the Party where the goods are
produced.

3. The value of non-originating materials shall be:

(a) for imported materials, the CIF value of the materials at the
time of importation; and

(b) for materials obtained within a Party, the earliest
ascertainable price paid or payable.

4. A material of undetermined origin shall be treated as a non-
originating material.

5. The following expenses may be deducted from the value of non-
originating materials or materials of undetermined origin:

(a) the costs of freight, insurance, packing, and other
transport-related costs incurred in transporting the goods
to the producer;

(b) duties, taxes, and customs brokerage fees, other than
duties that are waived, refunded, or otherwise recovered;
and

(c) costs of waste and spillage, less the value of any
renewable scrap or by-products.

Where the expenses listed in subparagraphs (a) through (c) are
unknown or evidence is not available, then no deduction is
allowed for those expenses.

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