Value-Added Criterion

The Value-Added Criterion is one of the core determination standards in rules of origin, used to determine whether goods have undergone substantial transformation to acquire originating status. Its core logic is: through processing and production of imported raw materials or semi-finished products within a country or region, the value of the final product increases by a certain percentage compared to the value of the non-originating materials used. If the value-added margin reaches the threshold stipulated in the agreement or regulations (usually expressed as a percentage), the product is deemed to originate from that country. This criterion is commonly used in free trade agreements (such as RCEP, USMCA) and GSP origin determinations. Use scenarios include enterprises applying for certificates of origin, enjoying tariff preferences, and responding to anti-dumping and trade frictions. Notes: Different agreements have different calculation methods and thresholds for value-added rates (such as the build-down method and build-up method). Enterprises must strictly calculate local content, direct labor, manufacturing overhead, etc.; the value-added criterion is often used in combination with the change in tariff classification criterion and the specific processing operation criterion, and enterprises should choose the most favorable rule. Unlike the 'wholly obtained' criterion, the value-added criterion applies to products containing imported components; compared with the change in tariff classification criterion, it focuses more on value composition rather than tariff code changes.