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CUSTOMS (ASEAN-AUSTRALIA-NEW ZEALAND RULES OF ORIGIN) REGULATIONS 2009 (SLI NO 279 OF 2009) - RULE 4.2

Direct method

         (1)   The direct method is the formula:

where:

"value of originating materials" means the value of the originating materials that are acquired, or self-produced, and used or consumed in the production of the goods.

"labour costs" includes wages, remuneration and other employee benefits associated with the production of the goods.

overhead costs includes the cost of the following (to the extent that the cost can be attributed to the production of the goods):

                (a)    inspection and testing of materials and goods;

               (b)    insurance of plant, equipment and materials;

                (c)    dies, moulds and tooling;

               (d)    depreciation, maintenance and repair of plant and equipment;

                (e)    interest payments for plant and equipment;

                (f)    research, development, design and engineering;

                (g)    the following items in relation to real property used for the production of the goods:

                          (i)    insurance;

                         (ii)    rent and lease payments;

                         (iii)    mortgage interest;

                        (iv)    depreciation on buildings;

                         (v)    maintenance and repair;

                        (vi)    rates and taxes;

                (h)    leasing plant and equipment;

                 (i)    energy, electricity, water and other utilities;

                (j)    storage of the goods within the place in which the production of the goods occurs;

               (k)    royalties or licences for patented machines or processes used in the production of the goods or for the right to produce the goods;

                 (l)    disposal of non recyclable waste;

               (m)    security within the place in which the production of the goods occurs.

"profit" has its ordinary meaning.

"other costs" means costs incurred in placing the goods in a ship or other means of transport for exportation and includes transport costs, storage and warehousing costs, port handling fees, brokerage fees and service charges.

" adjusted value " means the customs value of the goods, as calculated under Division 2 of Part VIII of the Act.

Note    See Part 5 for further information about calculating the value of originating materials.

         (2)   RVC is to be expressed as a percentage.



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