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Country of Origin Determination Worksheet (Regional Value Content)

Preferential duty claims depend on proving where a good originates. When the rule uses a value test, you need regional value content calculated correctly. This worksheet runs both common methods side by side.

Your numbers

USD

Price paid or payable for the good, adjusted as the agreement requires.

USD

Total cost less sales promotion, royalties, shipping and certain interest, per the agreement.

USD

Value of imported or unknown-origin materials used in production.

Your results

RVC, transaction value method
62%
(TV minus VNM) divided by TV, times 100.
RVC, net cost method
56.8%
(NC minus VNM) divided by NC, times 100.
Meets threshold by transaction value (1 = yes)
1
Meets threshold by net cost (1 = yes)
0
Maximum VNM allowed, transaction value
$40,000
Highest non-originating material value that still meets the threshold.
Maximum VNM allowed, net cost
$35,200
Headroom to threshold (points)
2

Illustrative only. Rules of origin differ by agreement and by product, and many require a tariff shift or specific processing rule in addition to, or instead of, a value test. Confirm the rule and the valuation method with your customs broker or trade counsel.

Save results:

RVC by non-originating material value

Sweeps Value of non-originating materials from 0 to 100000, holding your other inputs fixed.

Automate origin calculations from your BOM

Optional: discuss pulling BOM cost and supplier origin from your ERP into an auditable calculation.

Optional. The tool and every export work without this. No spam.

How to use the worksheet

Enter the adjusted transaction value, the net cost, and the total value of non-originating materials for one finished good. Select the threshold in the product-specific rule. Read the percentage from each method and whether it passes. The maximum allowed non-originating value shows how much room you have to change a supplier. The chart shows how content falls as non-originating inputs rise.

  • Work per product and per cost period, not for a whole plant
  • Use the same currency and valuation basis across inputs
  • Check whether your rule allows both methods or only one

The formulas

Transaction value method: RVC equals the transaction value minus the value of non-originating materials, divided by the transaction value, times 100. Net cost method: RVC equals the net cost minus the value of non-originating materials, divided by the net cost, times 100. Because net cost is usually lower than price, the net cost result can be lower or higher depending on the margin. Some agreements add other methods such as build-down or build-up.

Reading the result and common mistakes

A pass on this worksheet is one input to an origin decision. It does not replace the product-specific rule, record keeping or a certification of origin. Document your calculation and supporting supplier statements, since customs authorities may verify them.

  • Using list price instead of the adjusted transaction value
  • Treating a supplier's local address as proof of originating status
  • Ignoring indirect materials rules in the agreement
  • Not saving the calculation for the retention period

Frequently Asked Questions

What is regional value content?

It is the share of a good's value that comes from the free trade area, calculated as a percentage. Many rules of origin require a minimum RVC, often alongside a tariff classification change, before the good can claim preferential duty treatment.

Which method should I use?

Use the method your agreement and product-specific rule allow. Where both are permitted, run both and choose the one you can support with records. Net cost is commonly used for automotive goods, while transaction value is common for general products.

Are non-originating materials only imports?

Not exactly. They are materials that do not qualify as originating under the agreement, which includes imports from outside the area and materials of undetermined origin. Materials that are themselves originating can be treated as such with proper documentation.

Does this give me a certificate of origin?

No. It only calculates a value test. A certification or certificate of origin is a separate document that follows the format required by the agreement, and your authority or broker may need to review it.

If your bill of materials, supplier origin and standard cost data sit in your ERP, we can help build a private, auditable origin calculation on top of them.

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