Page:United States Statutes at Large Volume 117.djvu/939

 117 STAT. 920

PUBLIC LAW 108–77—SEPT. 3, 2003

(A) CLAIM FOR PREFERENTIAL TREATMENT.—A person claiming preferential tariff treatment for a good may claim that a fungible good or material is originating either based on the physical segregation of each fungible good or material or by using an inventory management method. (B) INVENTORY MANAGEMENT METHOD.—In this subsection, the term ‘‘inventory management method’’ means— (i) averaging; (ii) ‘‘last-in, first-out’’; (iii) ‘‘first-in, first-out’’; or (iv) any other method— (I) recognized in the generally accepted accounting principles of the country in which the production is performed (whether Chile or the United States); or (II) otherwise accepted by that country. (2) ELECTION OF INVENTORY METHOD.—A person selecting an inventory management method under paragraph (1) for particular fungible goods or materials shall continue to use that method for those goods or materials throughout the fiscal year of that person. (h) PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE.— Packaging materials and containers in which a good is packaged for retail sale, if classified with the good, shall be disregarded in determining whether all nonoriginating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 4.1 of the Agreement, and, if the good is subject to a regional value-content requirement, the value of such packaging materials and containers shall be taken into account as originating or nonoriginating materials, as the case may be, in calculating the regional value-content of the good. (i) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.— Packing materials and containers for shipment shall be disregarded in determining whether— (1) the nonoriginating materials used in the production of the good undergo an applicable change in tariff classification set out in Annex 4.1 of the Agreement; and (2) the good satisfies a regional value-content requirement. (j) INDIRECT MATERIALS.—An indirect material shall be considered to be an originating material without regard to where it is produced. (k) TRANSIT AND TRANSSHIPMENT.—A good that has undergone production necessary to qualify as an originating good under subsection (a) shall not be considered to be an originating good if, subsequent to that production, the good undergoes further production or any other operation outside the territory of Chile or the United States, other than unloading, reloading, or any other process necessary to preserve the good in good condition or to transport the good to the territory of Chile or the United States. (l) TEXTILE AND APPAREL GOODS CLASSIFIABLE AS GOODS PUT UP IN SETS.—Notwithstanding the rules set forth in Annex 4.1 of the Agreement, textile and apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3 of the Harmonized System shall not be considered to be originating goods unless each of the goods in the set is an originating good or the total value of the nonoriginating

VerDate 11-MAY-2000

13:45 Aug 26, 2004

Jkt 019194

PO 00000

Frm 00946

Fmt 6580

Sfmt 6581

D:\STATUTES\2003\19194PT1.001

APPS10

PsN: 19194PT1

�