(1)

The net cost method is the formula:

Note 1
See Part 4 for further information about how to work out the value of materials.
Note 2
The net cost method is applicable to certain goods, classified in any of the following headings or subheadings in the Harmonized System:

(a) subheading 8408.20;
(b) subheadings 8407.31-8407.34;
(c) heading 8409, 8706, 8707 or 8708;
(d) heading 8701, 8702, 8703, 8704 or 8705.

(2)

RVC is to be expressed as a percentage.