page 564 Oman
(1) production or manufacture in the territory of Oman or of the United States, or both; or
(2) used goods collected in the territory of Oman or of the United States, or both, if such goods are fit only for the recovery of raw materials;
(K) recovered goods derived in the territory of Oman or of the United States from used goods, and utilized in the territory of that country in the production of remanufactured goods; and
(L) goods produced in the territory of Oman or of the United States, or both, exclusively--
(1) from goods referred to in subdivisions (A) through (J) above, inclusive, or
(2) from the derivatives of goods referred to in such subdivisions,
at any stage of production.
(ii) Cumulation.
(A) An originating good or a material produced in the territory of Oman or of the United States, or both, that is incorporated into a good in the territory of the other country shall be considered to originate in the territory of the other country.
(B) A good that is grown, produced or manufactured in the territory of Oman or of the United States, or both, by one or more producers, is an originating good if the good satisfies the requirements of subdivision (b) of this note and all other applicable requirements of this note.
(C) Direct costs of processing operations performed in the territory of Oman or of the United States, or both, as well as the value of materials produced in the territory of Oman or of the United States, or both, may be counted without limitation toward satisfying the 35 percent value-content requirement specified in subdivision (b)(ii) of this note.
(iii) Packaging and packing materials and containers in which a good is packaged for retail sale and for shipment, if classified with the good, shall be disregarded in determining whether a good qualifies as an originating good, except that the value of originating packaging and packing materials and containers may be counted toward satisfying, where applicable, the 35 percent value-content requirement specified in subdivision (b)(ii) of this note.
(iv) Definitions. For the purposes of this note:
(A) The term “direct costs of processing operations” means those costs either directly incurred in, or that can reasonably be allocated to, the growth, production or manufacture of the good, including the following, to the extent they are includable in the appraised value of goods when imported into Oman or the United States, as the case may be, the following:
(1) 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;
(2) tools, dies, molds and other indirect materials, and depreciation on machinery and equipment that are allocable to the specific good;
(3) research, development, design, engineering and blueprint costs, to the extent that they are allocable to the specific good;
(4) costs of inspecting and testing the specific good; and
(5) costs of packaging the specific good for export to the territory of the other country.
The term “direct costs of processing operations” does not include costs that are not directly attributable to the 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 specific good or are not related to the growth, production or manufacture of the good, such as administrative salaries, casualty and liability insurance, advertising and salesmen’s staff salaries, commissions or expenses.
page 565 Oman
(B) The term “material” means a good, including a part or ingredient, that is used in the growth, production or manufacture of another good that is a new or different article of commerce that has been grown, produced or manufactured in Oman or of the United States, or both.
(C) The term “material produced in the territory of Oman or of the United States, or both” means a good that is either wholly the growth, product or manufacture of Oman or of the United States, or both, or a new or different article of commerce that has been grown, produced or manufactured in the territory of Oman or of the United States, or both.
(D) The term “new or different article of commerce” means, except as provided in this subdivision, a good that--
(1) has been substantially transformed from a good or material that is not wholly the growth, product or manufacture of Oman, the United States, or both; and
(2) has a new name, character or use distinct from the good or material from which it was transformed,
but a good shall not be considered a new or different article of commerce by virtue of having merely undergone (I) simple combining or packaging operations, or (II) mere dilution with water or another substance that does not materially alter the characteristics of the good.
(E) The term “simple combining or packaging operations” means operations such as adding batteries to devices, fitting together a small number of components by bolting, gluing or soldering, and repacking or packaging components together.
(F) The term “recovered goods” means materials in the form of individual parts that result from--
(1) the complete disassembly of used goods into individual parts; and
(2) the cleaning, inspecting, testing or other processing of those parts as necessary for improvement to sound working condition.
(G) The term “remanufactured goods” means industrial goods that are assembled in the territory of Oman or of the United State and that--
(1) are entirely or partially comprised of recovered goods;
(2) have similar life expectancies as new goods; and
(3) enjoy similar factory warranties as such new goods.
(H) The term “substantially transformed” means, with respect to a good or a material, changed as the result of a manufacturing or processing operation so that--
(1) (aa) the good or material has multiple uses and is converted into a good with limited uses;
(bb) the physical properties of the good or material are changed to a significant extent; or
(cc) the operation undergone by the good or material is complex in terms of the number of different processes and materials involved, as well as the time and level of skill required to perform those processes; and
(2) the good or material loses its separate identity in the resulting, new good or material.
(v) A good shall not be considered to be imported directly into the territory of the United States from the territory of Oman for purposes of this note if the good undergoes production, manufacturing or any other operation outside the territory of Oman 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 Oman or of the United States.
(e) Textile and apparel articles.
page 566 Oman
(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 (h) 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 goodcontaining 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 of the United States. For purposes 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.
(ii) Notwithstanding the rules set forth in subdivision (h) of this note, textile and apparel goods classifiable under general rule of interpretation 3 to the tariff schedule as goods put up in sets for retail sale 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 ten percent of the customs value of the set.
(iii) 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)).
(iv) [Subdivision deleted.]
(f) Indirect materials.
Indirect materials shall be disregarded in determining whether a good qualifies as an originating good, except that the cost of such indirect materials may be included in meeting the 35 percent value-content requirement of subdivision (b)(ii) of this note, where applicable. An “indirect material” means a good used in the growth, production, manufacture, testing or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the growth, production or manufacture of a good, including–
(i) fuel and energy;
(ii) tools, dies and molds;
(iii) spare parts and materials used in the maintenance of equipment and buildings;
(iv) lubricants, greases, compounding materials and other materials used in the growth, production or manufacture of a good or used to operate equipment and buildings;
(v) gloves, glasses, footwear, clothing, safety equipment and supplies;
(vi) equipment, devices and supplies used for testing or inspecting the good;
(vii) catalysts and solvents; and
(viii) any other goods that are not incorporated into the good but the use of which in the growth, production or manufacture of the good can reasonably be demonstrated to be a part of that growth, production or manufacture.
(g) Interpretation of rules of origin.
For purposes of interpreting the rules of origin set forth in subdivision (h) of this note--
(i) the specific rule, or specific set of rules, that applies to a particular heading or subheading is set out immediately adjacent to the heading or subheading;
(ii) a rule applicable to a subheading shall take precedence over a rule applicable to the heading which is parent to that subheading;
(iii) a requirement of a change in tariff classification applies only to non-originating materials; and
page 567 Oman
(iv) a reference to a “chapter” is to a chapter of the tariff schedule; a reference to a “heading” is to a provision whose article description is not indented and which is designated by 4 digits, whether or not followed by subsequent zeroes; and a reference to a “subheading” is to a provision whose article description is indented and which is designated by 6 digits, whether or not followed by subsequent zeroes.
(h) Product-specific rules of origin. [NOT UPDATED FOR PRES. PROC. 8097 or 8771]
(i) In general. With respect to goods not described in subdivision (b)(i) of this note, when such goods fall in the enumerated provisions set forth herein and the importer claims the treatment provided under this note with respect to such goods, the rules in this subdivision apply in lieu of the provisions of subdivision (b)(ii) of this note.
(ii) Certain dairy and dairy-containing products. A good containing over 10 percent by weight of milk solids classified in chapter 4 or heading 1901, 2105, 2106 or 2202 must be made from originating milk.
(iii) Other product-specific rules.
Chapter 17.
1. A change to headings 1701 through 1703 from any other chapter.
Chapter 18.
1. A change to sweetened cocoa powder of subheading 1806.10 from any other heading, provided that such sweetened cocoa powder does not contain nonoriginating sugar of chapter 17.
Chapter 20.
1. A change to subheadings 2009.11 through 2009.39 from any other chapter, except from heading 0805.
Chapter 21.
1. A change to concentrated juice of any single fruit or vegetable fortified with vitamins or minerals of subheading 2106.90 from any other chapter, except from heading 0805, subheadings 2009.11 through 2009.39 or subheading 2002.90.
Chapter 42.
1. A change to subheading 4202.12 from any other chapter, except from headings 5407, 5408 or 5512 through 5516 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60.
2. A change to subheading 4202.22 from any other chapter, except from headings 5407, 5408 or 5512 through 5516 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60.
3. A change to subheading 4202.32 from any other chapter, except from headings 5407, 5408 or 5512 through 5516 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60.
4. A change to subheading 4202.92 from any other chapter, except from headings 5407, 5408 or 5512 through 5516 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60.
Chapter 50.
1. A change to headings 5001 through 5003 from any other chapter.
2. A change to headings 5004 through 5006 from any heading outside that group.
3. A change to heading 5007 from any other heading.
page 568 Oman
Chapter 51.
1. A change to headings 5101 through 5105 from any other chapter.
2. A change to headings 5106 through 5110 from any heading outside that group.
3. A change to headings 5111 through 5113 from any heading outside that group, except from headings 5106 through 5110, 5205 through 5206, 5401 through 5404 or 5509 through 5510.
Chapter 52.
1. A change to headings 5201 through 5207 from any other chapter, except from headings 5401 through 5405 or 5501 through 5507.
2. A change to headings 5208 through 5212 from any heading outside that group, except from headings 5106 through 5110, 5205 through 5206, 5401 through 5404 or 5509 through 5510.
Chapter 53.
1. A change to headings 5301 through 5305 from any other chapter.
2. A change to headings 5306 through 5308 from any heading outside that group.
3. A change to headings 5309 from any other heading, except from headings 5307 through 5308.
4. A change to headings 5310 through 5311 from any heading outside that group, except from headings 5307 through 5308.
Chapter 54.
1. A change to headings 5401 through 5406 from any other chapter, except from headings 5201 through 5203 or 5501 through 5507.
2. A change to tariff items 5407.61.11, 5407.61.21 or 5407.61.91 from tariff items 5402.47.10 or 5402.52.10 or from any other chapter, except from headings 5106 through 5110, 5205 through 5206 or 5509 through 5510.
3. A change to heading 5407 from any other chapter, except from headings 5106 through 5110, 5205 through 5206 or 5509 through 5510.
4. A change to heading 5408 from any other chapter, except from headings 5106 through 5110, 5205 through 5206 or 5509 through 5510.
Chapter 55.
1. A change to headings 5501 through 5511 from any other chapter, except from headings 5201 through 5203 or 5401 through 5405.
2. A change to headings 5512 through 5516 from any heading outside that group, except from headings 5106 through 5110, 5205 through 5206, 5401 through 5404 or 5509 through 5510.
Chapter 56.
1. A change to headings 5601 through 5609 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311 or chapters 54 through 55.
Chapter 57.
1. A change to headings 5701 through 5705 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5308 or 5311, chapter 54 or headings 5508 through 5516.