7Value of goods that are non‑originating materials

7 Value of goods that are non‑originating materials

(1) For the purposes of subsection 153ZOB(3) of the Act, the value of non‑originating materials used in the production of goods is: (a) for non‑originating materials imported into the territory of China—the value of those materials worked out in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994; or (b) for non‑originating materials acquired in the territory of China—the value of those materials worked out under paragraph (a) on the assumption that those materials had been imported into the territory of China. (2) For the purposes of paragraph (1)(a), in working out the value of particular non‑originating materials, the following must be included: (a) the cost of freight and all other costs incurred in transporting the non‑originating materials to the port or place of entry in the territory of China; (b) the cost of insurance related to that freight. (3) For the purposes of paragraph (1)(b), in working out the value of particular non‑originating materials, the following are to be deducted: (a) the cost of freight and packing and all other costs incurred in transporting the non‑originating materials within the territory of China to the location of the producer of the goods; (b) the cost of insurance related to that freight.