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DGFT Foreign Trade Policy Foreign Trade Policy (upto 07/04/2005) PARA 4.1.2

Value Addition

4.1.2

The value addition for the purposes of this chapter shall be:-

       A - B
V.A = ----------- x 100, where
       B

V.A     Value Addition

A     FOB value of the export realised /FOR value of supply received.

B     CIF value of the imported inputs covered by the licence, plus any other
       imported materials used on which the benefit of duty drawback is being claimed.

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