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     (B) cutting of wire into different lengths to create wire subassemblies;

(C) stripping of the sheathing of wire;

(D) inserting connectors to the ends of wire sub-assemblies;

(E) attaching wire sub-assemblies to cable; and

(F) 100 percent testing of wiring sets and other quality control operations and packaging and labeling of finished product.

2. A change to subheadings 8544.11 through 8544.20 and subheadings 8544.41 through 8544.70 from any other subheading, including a subheading within that group, provided that the value of materials produced and direct costs of processing operations performed in the territory of Morocco or of the United States, or both, is not less than 35 percent of the appraised value of the good at the time it is entered into the territory of Morocco or of the United States.

Chapter 87.

1. A change to heading 8707 from any other heading.

2. A change to subheading 8708.91 from any other subheading.

3. A change to subheading 8708.93 from any other subheading.

4. A change to subheading 8708.94 from any other subheading.

5. A change to subheading 8708.99 from any other subheading.

6. A change to subheadings 8716.31, 8716.39 or 8716.40 from any other subheading.

7. A change to subheading 8716.90 from any other subheading.

Chapter 94.

1. A change to subheading 9404.90 from any other chapter, except from headings 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408 or 5512 through 5516 or subheading 6307.90.

28 United States-Australia Free Trade Agreement Implementation Act.

(a) Originating goods under the terms of the United States-Australia Free Trade Agreement (UAFTA) are subject to duty as provided for herein. For the purposes of this note, goods of Australia, as defined in subdivisions (b) through (n) of this note, that are imported into the customs territory of the United States and entered under a provision for which a rate of duty appears in the “Special” subcolumn of column 1 followed by the symbol “AU” in parentheses are eligible for the tariff treatment and quantitative limitations set forth in the “Special” subcolumn, in accordance with sections 201 through 203, inclusive, of the United States-Australia Free Trade Agreement Implementation Act (Pub.L. 108-286; 118 Stat. 919). For the purposes of this note, the term “UAFTA country” refers only to Australia or to the United States.

(b) For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UAFTA country under the terms of this note only if--

(i) the good is a good wholly obtained or produced entirely in the territory of Australia or of the United States, or both;

(ii) the good was produced entirely in the territory of Australia or of the United States, or both, and--

(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note;
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     (B) the good otherwise satisfies any applicable regional value content requirement referred to in subdivision (n) of this note; or

(C) the good meets any other requirements specified in subdivision (n) of this note;

and such good satisfies all other applicable requirements of this note;

(iii) the good was produced entirely in the territory of Australia or of the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note; or

(iv) the good otherwise qualifies as an originating good under this note.

(c) (i) For purposes of subdivision (b)(i) of this note, except as otherwise provided in subdivision (d) of this note for textile and apparel articles, the expression “good wholly obtained or produced” means–

(A) a mineral good extracted from the territory of Australia or of the United States, or both;

(B) a vegetable good, as such goods are provided for in the tariff schedule, harvested in the territory of Australia or of the United States, or both;

(C) a live animal born and raised in the territory of Australia or of the United States, or both;

(D) a good obtained from hunting, trapping, fishing or aquaculture conducted in the territory of Australia or of the United States, or both;

(E) a good (fish, shellfish and other marine life) taken from the sea by vessels registered or recorded with Australia or the United States and flying the flag of that country;

(F) a good produced exclusively from products referred to in subdivision (E) on board factory ships registered or recorded with Australia or the United States and flying the flag of that country;

(G) a good taken by Australia or the United States, or a person of Australia or the United States, from the seabed or beneath the seabed outside territorial waters, if Australia or the United States has rights to exploit such seabed;

(H) a good taken from outer space, if such good is obtained by Australia or the United States, or a person of Australia or the United States, and is not processed in the territory of a country other than Australia or the United States;

(I) waste and scrap derived from–

(1) production in the territory of Australia or of the United States, or both; or

(2) used goods collected in the territory of Australia or of the United States, or both, if such goods are fit only for the recovery of raw materials;

(J) a recovered good derived in the territory of Australia or of the United States from goods that have passed their life expectancy, or are no longer usable due to defects, and utilized in the territory of that country in the production of remanufactured goods; or

(K) a good produced in the territory of Australia or of the United States, or both, exclusively from--

(1) goods referred to in subdivisions (A) through (I) above, inclusive, or

(2) the derivatives of goods referred to in such subdivisions,

at any stage of production.

(ii) (A) For the purposes of subdivision (c)(i)(J) of this note, the term “recovered goods” means materials in the form of individual parts that result from--
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     (1) the complete disassembly of goods which have passed their life expectancy, or are no longer usable due to defects, into individual parts; and

(2) the cleaning, inspecting, testing or other processing that is necessary for improvement to sound working condition of such individual parts.

(B) For purposes of this note, the term “remanufactured good” means an industrial good assembled in the territory of Australia or of the United State that is classified in chapter 84, 85 or 87 of the tariff schedule or heading 9026, 9031 or 9032, other than a good classified in heading 8418 or 8516 or any of the headings 8701 through 8706, and that--

(1) is entirely or partially comprised of recovered goods;

(2) has a similar life expectancy to, and meets the same performance standards as, a like good that is new; and

(3) enjoys a factory warranty similar to a like good that is new.

(C) For the purposes of this note–

(1) the term “material” means a good that is used in the production of another good;

(2) the term “material that is self-produced” means an originating material that is produced by a producer of a good and used in the production of that good; and

(3) a “nonoriginating material” is a material that does not qualify as originating under this note.

(D) For the purposes of this note, the term “production” means growing, raising, mining, harvesting, fishing, trapping, hunting, manufacturing, processing, assembling or disassembling a good; and the term “producer” means a person who engages in the production of a good in the territory of Australia or of the United States.

(E) For the purposes of this note, the term “adjusted value” means the value determined under Articles 1 through 8, Article 15 and the corresponding interpretative notes of the Customs Valuation Agreement, as adjusted to exclude any costs, charges or expenses incurred for transportation, insurance and related services incidental to the international shipment of the good from the country of exportation to the place of importation.

(iii) A good that has undergone production necessary to qualify as an originating good under this note 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 Australia or of 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 Australia or of the United States.

(d) Textile and apparel articles.

(i) Except as provided in subdivision (ii) below, a textile or apparel good that is not an originating good under the terms of this note, 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 subdivision (n) of this note, 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 seven percent of the total weight of that component. Notwithstanding the preceding sentence, 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 Australia or of the United States.

(ii) Notwithstanding the rules set forth in subdivision (n) of this note, textile and apparel goods classifiable as goods put up in sets for retail sale as provided under general rule of interpretation 3 to the tariff schedule 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.

(iii) For purposes of subdivision (d)(i) of this note, 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.
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   (iv) For purposes of this note, the term “textile or apparel good” means a good listed in the Annex to the Agreement on Textiles and Clothing referred to in section 101(d)(4) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)). For the purposes of the rules set forth in subdivision (n) of this note that apply to textile or apparel goods pursuant to Annex 4-A to the UAFTA, a good is considered to be “wholly” of a material if the good is made entirely of the material.

(e) De minimis.

(i) Except as provided in subdivision (e)(ii) below, a good (other than a textile or apparel good described in subdivision (d) above) that does not undergo a change in tariff classification pursuant to subdivision (n) of this note shall nonetheless be considered to be an originating good if–

(A) the value of all nonoriginating materials that are used in the production of the good, and do not undergo the applicable change in tariff classification, does not exceed 10 percent of the adjusted value of the good;

(B) the value of such nonoriginating materials is included in calculating the value of nonoriginating materials for any applicable regional value content requirement for the good; and

(C) the good meets all other applicable requirements of this note.

(ii) Subdivision (e)(i) does not apply to–

(A) a nonoriginating material provided for in chapter 4 or in subheading 1901.90 that is used in the production of a good provided for in chapter 4;

(B) a nonoriginating material provided for in chapter 4 or in subheading 1901.90 that is used in the production of a good provided for in subheading 1901.10, 1901.20 or 1901.90, heading 2105, or subheading 2106.90, 2202.90 or 2309.90;

(C) a nonoriginating material provided for in heading 0805 or any of subheadings 2009.11 through 2009.39 that is used in the production of a good provided for in any of subheadings 2009.11 through 2009.39, or in subheading 2106.90 or 2202.90;

(D) a nonoriginating material provided for in chapter 15 that is used in the production of a good provided for in headings 1501 through 1508, 1512, 1514 or 1515;

(E) a nonoriginating material provided for in heading 1701 that is used in the production of a good provided for in any of headings 1701 through 1703;

(F) a nonoriginating material provided for in chapter 17 or heading 1805 that is used in the production of a good provided for in subheading 1806.10;

(G) a nonoriginating material provided for in any of headings 2203 through 2208 that is used in the production of a good provided for in headings 2207 or 2208; and

(H) a nonoriginating material used in the production of a good provided for in chapters 1 through 21, inclusive, unless the nonoriginating material is provided for in a different subheading than the good for which origin is being determined under this note.

(f) Accumulation.

(i) For purposes of this note, originating materials from the territory of Australia or of the United States that are used in the production of a good in the territory of the other country shall be considered to originate in the territory of such other country.

(ii) A good that is produced in the territory of Australia or of the United States, or both, by one or more producers, is an originating good if the good satisfies all of the applicable requirements of this note.

(g) Regional value content.
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(i) For purposes of subdivision (b)(ii)(B) of this note, the regional value content for a good, except for goods to which subdivision   (iv) applies, shall be calculated by the importer, exporter or producer of the good on the basis of the build-down method or the build-up method described below, unless otherwise specified in this note:

(A) For the build-down method, the regional value content may be calculated on the basis of the formula RVC = (AV - VNM) X 100 / AV, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value; and VNM is the value of nonoriginating materials that are acquired and used by the producer in the production of the good, but does not include the value of a material that is self-produced; or

(B) For the build-up method, the regional value content may be calculated on the basis of the formula RVC = (VOM x 100) / AV, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value; and VOM is the value of originating materials that are acquired or self-produced, and used by the producer in the production of the good.

(ii) Value of materials.

(A) For purposes of calculating the regional value content of a good under this note and for purposes of applying the de minimis provisions of subdivision (e) of this note, the value of a material is:

(1) in the case of a material imported by the producer of the good, the adjusted value of the material;

(2) in the case of a material acquired in the territory in which the good is produced, determined in accordance with Articles 1 through 8, article 15 and the corresponding interpretive notes of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 referred to in section 101(d)(8) of the Uruguay Round Agreements Act, as set forth in regulations promulgated by the Secretary of the Treasury providing for the application of such Articles in the absence of an importation; or

(3) in the case of a material that is self-produced, the sum of--

(I) all expenses incurred in the production of the material, including general expenses; and

(II) an amount for profit equivalent to the profit added in the normal course of trade.

(B) The value of materials may be adjusted as follows:

(1) for originating materials, the following expenses, if not included under subdivision (g)(ii)(A) of this note, may be added to the value of the originating material:

(I) the costs of freight, insurance, packing and all other costs incurred in transporting the material within or between the territory of Australia, the United States or both, to the location of the producer;

(II) duties, taxes and customs brokerage fees on the material paid in the territory of Australia or of the United States, or both, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; and

(III) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products;

(2) for non-originating materials, if included in the value of a nonoriginating material calculated under subdivision (g)(ii)(A) of this note, the following expenses may be deducted from the value of the nonoriginating material:

(I) the costs of freight, insurance, packing and all other costs incurred in transporting the material within or between the territory of Australia, the United States or both, to the location of the producer;

(II) duties, taxes and customs brokerage fees on the material paid in the territory of Australia or of the United States, or both, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable;