6Direct/build‑up method

6 Direct/build‑up method

(1) For the purposes of paragraph 153ZQE(6)(b) of the Act, the regional value content of goods under the direct/build‑up method is worked out using the formula: Start formula start fraction Value of originating materials plus Direct labour costs plus Direct overhead costs plus Profit plus Other costs over Customs value end fraction times 100 end formula where:

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

direct labour costs includes wages, remuneration and other employee benefits.

direct overhead costs means the total overhead expense.

other costs has the same meaning as it has in Article 3.5 of Chapter 3 of the Agreement.

profit has the same meaning as it has in Article 3.5 of Chapter 3 of the Agreement.

value of originating materials means the value, worked out under Part 4, of the originating materials that are acquired by the producer, or produced by the producer, and are used by the producer in the production of the goods.

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