Page:United States Statutes at Large Volume 102 Part 2.djvu/854

 102 STAT. 1858

PUBLIC LAW 100-449—SEPT. 28, 1988 territory of a Party and be treated as goods originating in the territory of the Party if— (A) the value of materials originating in the territory of either Party or both Parties used or consumed in the production of the goods plus the direct cost of assembling the goods in the territory of either Party or both Parties constitute not less than 50 percent of the value of the goods when exported to the territory of the other Party; and (B) the goods have not subsequent to assembly undergone processing or further assembly in a third country and they meet the requirements of subsection (b). (4) The provisions of paragraph (3) shall not apply to goods of chapters 61-63 of the Harmonized System. (5) In making the determination required by paragraph (3)(A) and in making the same or a similar determination when required by the Annex rules, where materials originating in the territory of either Party or both Parties and materials obtained or produced in a third country are used or consumed together in the production of goods in the territory of a Party, the value of materials originating in the territory of either Party or both Parties may be treated as such only to the extent that it is directly attributable to the goods under consideration. (6) In applying the Annex rules, a specific rule shall take precedence over a more general rule.

President of U.S.

(d) ANNEX RULES.—

(1) The President is authorized to proclaim, as a part of the Harmonized System, the rules set forth under the heading "Rules" in Annex 301.2 of the Agreement. For purposes of carrying out this paragraph— (A) the phrase "headings 2207-2209" in paragraph 7 of section IV of such Annex 301.2 shall be treated as a reference to headings 2203-2209; and (B) the phrase "any other heading" in paragraph 11 of section XV in such Annex 301.2 shall be treated as a reference to any other heading of chapter 74 of the Harmonized System. (2) Subject to the consultation and lay-over requirements of section 103, the President is authorized to proclaim such modifications to the rules as may from time-to-time be agreed to by the United States and Canada. (e) AUTOMOTIVE PRODUCTS.— President of U.S.

Regulations.

(1) The President is authorized to proclaim such modifications to the definition of Canadian articles (relating to the administration of the Automotive Products Trade Act of 1965) in the general notes of the Harmonized System as may be necessary to conform that definition with chapter 3 of the Agreement. (2) For purposes of administering the value requirement (as defined in section 304(c)(3)) with respect to vehicles, the Secretary of the Treasury shall prescribe regulations governing the averaging of the value content of vehicles of the same class, or of sister vehicles, assembled in the same plant as an alternative to the calculation of the value content of each vehicle. (0 DEFINITIONS.—For purposes of this section: (1) The term "Annex ' means— (A) the interpretative guidelines set forth in subsection (c); and (B) the Annex rules.

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