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Mastering The 30% Value-Added Rule

Jan 20, 2026

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Mastering the 30% Value-Added Rule

The Formula Demystified

A widely cited definition states:

"The 30 percent added value rule allows goods produced by encouraged industrial enterprises that contain duty-free imported materials and have 30 percent or more local added value generated in the Hainan FTP to be exempted from import tariffs when shipped to the Chinese mainland." Source

Official formula (as commonly published)

purchased materials) / ( price of imported materials + price of domestically purchased materials)] * 100%

Source

Calculation Examples-From Simple to Complex

Example 1: Single-Stage Processing (Simple) - Cosmetic Face Cream