TaxTMI 
TaxTMI 
Can FTA benefits be availed when importing goods as Free of Cost (FOC), while paying customs duty on the commercial value? The concern is that we need to satisfy the Regional Value Content (RVC) requirement under FTA, which is based on the FOB value of the goods. However, in this case, the actual value is nil, whereas for customs duty payment purposes, we will use a commercial value.
FTA Benefit Eligibility for FOC Imports
21 Mar 2025 
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Regional Value Content requirement: FOC imports may meet FTA eligibility when commercial value is used and documented.
Eligibility for FTA tariff treatment of Free of Cost (FOC) imports hinges on satisfying the Rules of Origin, notably the Regional Value Content (RVC). Where transactional value is nil, the commercial value declared for customs duty is generally used to calculate RVC, provided that value is supported by appropriate commercial documentation and other origin conditions of the CEPA are met. (AI Summary)
Eligibility for FTA tariff treatment of Free of Cost (FOC) imports hinges on satisfying the Rules of Origin, notably the Regional Value Content (RVC). Where transactional value is nil, the commercial value declared for customs duty is generally used to calculate RVC, provided that value is supported by appropriate commercial documentation and other origin conditions of the CEPA are met. (AI Summary)