Here is a case study of Value Added method.
Company A manufactures Table lamps (HS SubHeading 9405.20)
Table lamps of SubHeading 9405.20 are manufactured from the following
|Tubes of brass||€ 3.00|
|Plates of brass||€ 2.00|
|Steel wire||€ 0.15|
|Plastics components||€ 0.25|
|Light bulb||€ 0.30|
|Lamp holder:||€ 0.50|
|Total value||€ 9.38|
The lamps are sold at an ex-works price of € 20.-
The list rule for heading 94.05 requires the following working or processing to
be carried out on non-originating material:
“Manufacture in which the value of all the materials used does not exceed 50 %
of the ex-works price of the product”.
The total value of the non-originating materials used in the manufacture of one
lamp (€ 9.38) is less than 50 % of the ex-works price of one lamp (€ 20.-).
The origin requirements are fulfilled and the lamps can be regarded as