3.1Direct method

3.1 Direct method

(1) For the purposes of subsection 153ZKE(6) of the Act, the regional value content of goods under the direct method is worked out using the formula: Start formula start fraction AANZFTA material cost plus Labour cost plus Overhead cost plus Profit plus Other Costs over Customs value end fraction times 100 end formula.where:

AANZFTA material cost means the value, worked out under Part 4, of the originating materials used in the production of the goods.

customs value means the customs value of the goods worked out under Division 2 of Part VIII of the Act.

labour cost includes wages, remuneration and other employee benefits.

other costs means the costs incurred in placing the goods in the ship or other means of transport for export including, but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees and service charges.

overhead cost means the total overhead expense.

profit has the same meaning as it has in Article 5 of Chapter 3 of the Agreement.

(2) Regional value content must be expressed as a percentage.