35% RVC meaning

[Kishan Barai]

What is the meaning of 35% RVC or Wholly obtained or Produced. Please enlighten.

[Ganeshan Kalyani]

Sir, Sri Kishan Ji, Sri Sanjay Sir would help you better in such topic. He is a Bank of Knowledge. Thanks.

[KASTURI SETHI]

Yes, Sir. There is no hiccup in admitting this fact. Sh.Sanjay Malhotra CS is an all rounder and he is humble, co-operative and ego-less.

[Kishan Barai]

Thank You Sir. All TMI Team is Great. Will Wait for CS Sanjay Sir Reply. Thank You

[KASTURI SETHI]

Sh.Kishan Barai Ji,

Waiting will not do. You will have to contact him to post his views. Sh.Sanjay Malhotra, CS is a very very busy person but very co-operative and humble. He will oblige you.

[MADAN RAHEJA]

Dear SirThe terms referred by you appear in Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of the Republic of India and Malaysia) Rules, 2011, Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009 and Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between Governments of the Republic of India and the Republic of Korea) Rules, 2009. All these rules relate to trade of notified goods as per treaty between India and specified countries.

2. Term 35% RVC would mean that goods must have a Regional Value Content (RVC) of not less than 35 per cent as determined in terms of respective Rules. Different percentage of RVC has been specified for different goods. Further terms ‘Not wholly obtained or produced goods’ also stand defined in respective Rules.

3. For details please see Notifications 43/2011-Cus(NT),187/2009-Cus (NT) and 189/2009 – Cus (NT).

4. I would like to know from experts whether my understanding is correct or not.

[Kishan Barai]

Yes, you are correct, its a not banking topic, I found out actually its a rule to obtain GSP. At least 35% of Indian components must be found in product to get GSP from EIA. Thank You

AI Summary

Regional value content requirement determines preferential origin eligibility for goods under trade agreements for GSP claims. Regional Value Content (RVC) and the category of goods 'not wholly obtained or produced' are origin-determination criteria under Customs Tariff rules for preferential trade agreements. Goods must meet the applicable RVC threshold or other origin tests, calculated per the origin-determination methodology in the relevant rules, and exporters must rely on implementing notifications that set product-specific thresholds and define not wholly obtained or produced goods to qualify for preferential treatment.