Page:United States Statutes at Large Volume 120.djvu/1229

 120 STAT. 1198

PUBLIC LAW 109–283—SEPT. 26, 2006 (B) CERTAIN TEXTILE OR APPAREL GOODS.—A textile or apparel good containing elastomeric yarns in the component 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 Oman 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 ‘‘component 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.—Notwithstanding the rules set forth in Annex 3–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.— (A) IN GENERAL.—The term ‘‘direct costs of processing operations’’, with respect to a good, includes, to the extent they are includable in the appraised value of the good when imported into Oman or the United States, as the case may be, the following: (i) All actual labor costs involved in the growth, production, or manufacture of the good, including fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and similar personnel. (ii) Tools, dies, molds, and other indirect materials, and depreciation on machinery and equipment that are allocable to the good. (iii) Research, development, design, engineering, and blueprint costs, to the extent that they are allocable to the good. (iv) Costs of inspecting and testing the good. (v) Costs of packaging the good for export to the territory of the other country. (B) EXCEPTIONS.—The term ‘‘direct costs of processing operations’’ does not include costs that are not directly attributable to a good or are not costs of growth, production, or manufacture of the good, such as— (i) profit; and (ii) general expenses of doing business that are either not allocable to the good or are not related to the growth, production, or manufacture of the good, such as administrative salaries, casualty and liability insurance, advertising, and sales staff salaries, commissions, or expenses. (2) GOOD.—The term ‘‘good’’ means any merchandise, product, article, or material. (3) GOOD WHOLLY THE GROWTH, PRODUCT, OR MANUFACTURE OF OMAN OR THE UNITED STATES, OR BOTH.—The term ‘‘good

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