Regional value content, or RVC, measures the share of a product’s value attributed to originating regional inputs and production under a stated trade agreement formula.
| Checkpoint | Question to resolve |
|---|---|
| Entity | Which legal business will contract, invoice and receive payment? |
| Site or basis | Which facility, standard or rule supports the supplier’s claim? |
| Release | What evidence must be approved before the order, shipment or payment proceeds? |
The sourcing decision
Use the formula, cost definitions, valuation basis and threshold in the applicable agreement and product-specific rule. Fix the calculation period and treatment of non-originating materials before computing the percentage.
Documents and checks
Keep the bill of materials, input origin, import values, labor and overhead support where required, FOB basis, calculation and reviewer approval.
RVC is agreement-specific. A percentage calculated for management reporting cannot support a preference claim unless it follows the governing origin rule and evidence requirements.
Official reference: ASEAN Trade in Goods Agreement. Check the current rule and scope before using it for a transaction.
Related terms
Southeast Asia Sourcing, Asean Sourcing, Asean Rules Of Origin.
