Customs and Excise Act, 1964 (Act No. 91 of 1964)

Customs and Excise Rules

Chapter V : Clearance and Origin of Goods: Liability for and payment of duties

Rules for Section 46A of the Act

Part 6 : Non-reciprocal zero-tariff treatment for goods exported from the Republic to the People's Republic of China on compliance with the provisions of origin and other requirements specified in these rules

Rules concerning origin and proof of origin in respect of goods exported to the People's Republic of China

46A6.04 Article 4 - Regional value content

Purchase

46A6.04

Article 4 - Regional value content

(a)	The Regional Value Content criterion as contemplated in rule 46A6.02(c) means the good has a Regional Value Content of not less than 40 per cent of FOB value, calculated using the formula as described in paragraph (b), and the final process of production is carried out in the Republic.

(b)	The Regional Value Content criterion shall be calculated as follows:

R7522 formula

Where—

RVC is the Regional Value Content, expressed as a percentage; and

VNM is the value of the non-originating materials, including materials of undetermined origin.

(c)	VNM shall be determined according to the following circumstances:

(i)	In the case of the imported non-originating materials, VNM shall be the sum of the cost of the goods plus insurance and freight costs (CIF value) of the materials at the time of importation; and

(ii)

in the case of the non-originating materials obtained in the Republic, VNM shall be the earliest ascertainable price paid or payable for the non-originating materials used in the production of the goods therein. The value of such non-originating materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the material from the supplier’s warehouse to the producer’s location.

(d)	If a product which has acquired originating status in the Republic is used as material in the manufacture of another product therein, no account shall be taken of the non-originating components of that material in the determination of the originating status of the latter product.

[Part 6 Rule 46A6.04 inserted by Notice No. R. 7522, GG54755, dated 28 May 2026 - retrospectively with effect from 1 May 2026]