Page:United States Statutes at Large Volume 118.djvu/1141

 118 STAT. 1111 PUBLIC LAW 108–302—AUG. 17, 2004 (C) Freight, insurance, packing, and all other costs incurred in transporting the material to the producer’s plant. (e) PACKAGING AND PACKING MATERIALS AND CONTAINERS FOR RETAIL SALE AND FOR SHIPMENT.—Packaging and packing materials and containers for retail sale and shipment shall be disregarded in determining whether a good qualifies as an originating good, except to the extent that the value of such packaging and packing materials and containers have been included in meeting the require ments set forth in subsection (b)(2). (f) INDIRECT MATERIALS.—Indirect materials shall be dis regarded in determining whether a good qualifies as an originating good, except that the cost of such indirect materials may be included in meeting the requirements set forth in subsection (b)(2). (g) TRANSIT AND TRANSSHIPMENT.—A good shall not be consid ered to meet the requirement of subsection (b)(1)(A) if, after expor tation from the territory of Morocco or the United States, the good undergoes production, manufacturing, or any other operation outside the territory of Morocco or the United States, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of the United States or Morocco. (h) TEXTILE AND APPAREL GOODS.— (1) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.— (A) IN GENERAL.—Except as provided in subparagraph (B), a textile or apparel good that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in Annex 4–A of the Agreement shall be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than 7 percent of the total weight of that component. (B) CERTAIN TEXTILE OR APPAREL GOODS.—A textile or apparel good containing elastomeric yarns in the compo nent of the good that determines the tariff classification of the good shall be considered to be an originating good only if such yarns are wholly formed in the territory of Morocco or the United States. (C) YARN, FABRIC, OR GROUP OF FIBERS.—For purposes of this paragraph, in the case of a textile or apparel good that is a yarn, fabric, or group of fibers, the term ‘‘compo nent of the good that determines the tariff classification of the good’’ means all of the fibers in the yarn, fabric, or group of fibers. (2) GOODS PUT UP IN SETS FOR RETAIL SALE.—Notwith standing the rules set forth in Annex 4–A of the Agreement, textile or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3 of the HTS 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 goods in the set does not exceed 10 percent of the value of the set determined for purposes of assessing customs duties. (i) DEFINITIONS.—In this section: (1) DIRECT COSTS OF PROCESSING OPERATIONS.—

�