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     (C) Any cost or value referred to in this note shall be recorded and maintained in accordance with the generally accepted accounting principles applicable in the territory of the country in which the good is produced (whether Chile or the United       States). Such principles are the principles, rules and procedures, including both broad and specific guidelines, that define the accounting practices accepted in the territory of Chile or of the United States, as the case may be.

(h) Accessories, spare parts or tools.

Accessories, spare parts or tools delivered with a good that form part of the good's standard accessories, spare parts or tools shall be treated as a material used in the production of the good, if:

(i) the accessories, spare parts or tools are classified with and not invoiced separately from the good; and

(ii) the quantities and value of the accessories, spare parts or tools are customary for the good.

(i) Fungible goods and materials.

(i) A person claiming the tariff treatment provided in this note 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. For purposes of this subdivision, the term “inventory management method” means:

(A) averaging,

(B) “last-in, first-out,”

(C) “first-in, first out,” or

(D) any other method that is recognized in the generally accepted accounting principles of the country in which the production is performed (whether Chile or the United States) or otherwise accepted by that country.

The term “fungible goods” or fungible materials” means goods or materials, as the case may be, that are interchangeable for commercial purposes and the properties of which are essentially identical.

(ii) A person selecting an inventory management method under subdivision (i) above for particular fungible goods or materials shall continue to use that method for those fungible goods or materials throughout the fiscal year of that person.

(j) Packaging materials and containers.

(i) Packaging materials and containers in which a good is packaged for retail sale, if classified with the good for which the tariff treatment under the terms of this note is claimed, 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 subdivision (n) of this note 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.

(ii) Packing materials and containers for shipment shall be disregarded in determining whether–

(A) the nonoriginating materials used in the production of the good undergo an applicable change in tariff classification set out in subdivision (n) of this note; and

(B) the good satisfies a regional value-content requirement.

(k) Indirect materials.

An indirect material shall be considered to be an originating material for purposes of this note without regard to where it is produced. The term “indirect material” means a good used in the production, testing or inspection of a good but not physically incorporated
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 into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of a good, including–

(i) fuel and energy;

(ii) tools, dies and molds;

(iii) spare parts and materials used in the maintenance of equipment or buildings;

(iv) lubricants, greases, compounding materials and other materials used in production 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 goods;

(vii) catalysts and solvents; and

(viii) any other goods that are not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production.

(l) Record-keeping requirements and verification.

(i) An importer of a good, for which treatment as an originating good of a UCFTA country is claimed under the provisions of this note, shall make a written declaration that the good qualifies as originating, under the terms of applicable regulations, and shall be prepared to submit, upon request by the appropriate customs officer, a certificate of origin demonstrating that the good qualifies as an originating good under the provisions of this note, including pertinent cost and manufacturing information and all other information requested by such customs officer.

(ii) Importers shall maintain for a period of five years after the date of importation of the good a certificate of origin or other information demonstrating that the good qualifies as originating, and all other documents that are required under applicable regulations relating to the importation of the good, in relating to the importation of the good, including records concerning:

(A) the purchase of, cost of, value of and payment for the good;

(B) where appropriate, the purchase of, cost of, value of and payment for all materials, including indirect materials, used in the production of the good; and

(C) where appropriate, the production of the good in the form in which the good is exported;

and shall, upon request by the appropriate customs officer, make available such records as are necessary under applicable regulations to demonstrate that a good qualifies as an originating good under the provisions of this note.

(iii) For purposes of determining whether a good imported into the customs territory of the United States from the territory of Chile qualifies as an originating good under the provisions of this note, the appropriate customs officer may conduct a verification under such terms or procedures as the United States and Chile may agree, as set forth in pertinent regulations.

(m) Interpretation of rules of origin.

(i) Unless otherwise specified, a rule in subdivision (n) of this note that is set out adjacent and is applicable to a 6-digit subheading in the tariff schedule shall take precedence over a rule applicable to a 4-digit heading superior thereto and covering the goods of such subheading. For purposes of this subdivision and subdivision (n) of this note, a tariff provision is a “heading” if its article description is not indented; a provision is a “subheading” if it is designated by 6 digits under the Harmonized Commodity Description and Coding System.

(ii) References to weight in the rules set forth in subdivision (n) of this note for goods provided for in chapters 1 through 24 of the tariff schedule are to dry weight, unless otherwise specified in the tariff schedule.

(iii) A requirement of a change in tariff classification in subdivision (n) of this note applies only to nonoriginating materials.
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  (iv) A good shall not be considered to be originating solely by virtue of having undergone:

(A) simple combining or packaging operations, or

(B) mere dilution with water or another substance that does not materially alter the characteristics of the good.

(v) For purposes of applying this note to goods of chapters 6 through 14, inclusive, agricultural and horticultural goods grown in the territory of Chile or of the United States shall be treated as originating therein even if grown from seed, bulbs, rootstock, cuttings, slips or other live parts of plants imported from a country other than Chile or the United States.

(vi) (A) For purposes of applying this note to goods of chapters 28 through 38, inclusive, the following provisions confer origin to a good of any heading or subheading in such chapters, except as otherwise specified in this subdivision.

(B) Notwithstanding subdivision (vi)(A), a good of chapters 28 through 38 is an originating good if it meets the applicable change in tariff classification or satisfies the applicable value content requirement specified in subdivision (n) of this note.

(C) A good of chapters 28 through 38, except goods of heading 3823, that results from a chemical reaction in the territory of Chile or of the United States, or both, shall be treated as an originating good. For purposes of such chapters, a “chemical reaction” is a process (including a biochemical process) that results in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.

The following are not considered to be chemical reactions for the purposes of determining whether a good is originating:

(1) dissolving in water or in another solvent;

(2) the elimination of solvents, including solvent water; or

(3) the addition or elimination of water of crystallization.

(D) A good of chapters 28 through 38 that is subject to purification shall be treated as an originating good provided that the purification occurs in the territory of Chile or of the United States, or both, and results in the following:

(1) the elimination of 80 percent of the impurities; or

(2) the reduction or elimination of impurities resulting in a good suitable:

(I) as a pharmaceutical, medicinal, cosmetic, veterinary or food grade substance;

(II) as a chemical product or reagent for analytical, diagnostic or laboratory uses;

(III) as an element or component for use in micro-elements;

(IV) for specialized optical uses;

(V) for non-toxic uses for health and safety;

(VI) for biotechnical use;

(VII) as a carrier used in a separation process; or

(VIII)for nuclear grade uses.

(E) A good of chapters 30, 31 or 33 through 38, except for heading 3808, shall be treated as an originating good if the deliberate and proportionally controlled mixing or blending (including dispersing) of materials to conform to predetermined specifications, resulting in the production of a good having physical or chemical characteristics that are relevant to the purposes or uses of the good and are different from the input materials, occurs in the territory of Chile or of the United States, or both.
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   (F) A good of chapters 30, 31 or 33 shall be treated as an originating good if the deliberate and controlled modification in particle size of the good, including micronizing by dissolving a polymer and subsequent precipitation, other than by merely crushing or pressing, resulting in a good having a defined particle size, defined particle size distribution, or defined surface area, which is relevant to the purposes of the resulting good and have different physical or chemical characteristics from the input materials, occurs in the territory of Chile or of the United States, or both.

(G) A good of chapters 28 through 38 shall be treated as an originating good if the production of standards materials occurs in the territory of Chile or of the United States, or both. For the purposes of this note, “standards materials” (including standard solutions) are preparations suitable for analytical, calibrating or referencing uses, having precise degrees of purity or proportions that are certified by the manufacturer.

(H) A good of chapters 28 through 38 shall be treated as an originating good if the isolation or separation of isomers from mixtures of isomers occurs in the territory of Chile or of the United States, or both.

(I) A good that undergoes a change from one classification to another in the territory of Chile or of the United States, or both, as a result of the separation of one or more materials from a man-made mixture shall not be treated as an originating good unless the isolated material underwent a chemical reaction in the territory of Chile or of the United States, or both.

(n) Change in tariff classification rules. [NOTE: Not updated for Pres.Proc. 8771, effective Feb. 3, 2012.]

Chapter 1.

1. A change to headings 0101 through 0106 from any other chapter.

Chapter 2.

1. A change to headings 0201 through 0210 from any other chapter.

Chapter 3.

1. A change to headings 0301 through 0308 from any other chapter.

Chapter 4.

1. A change to headings 0401 through 0410 from any other chapter, except from dairy preparations containing over 10 percent by weight of milk solids of subheading 1901.90 and products containing over 10 percent by weight of milk solids of subheading 2106.90.

Chapter 5.

1. A change headings 0501 through 0511 from any other chapter.

Chapter 6.

1. A change to headings 0601 through 0604 from any other chapter.

Chapter 7.

1. A change to subheadings 0701.10 through 0712.39 from any other chapter.

2. (A) A change to marjoram, savory or cilantro, crushed or ground, of subheading 0712.90 from marjoram, savory or cilantro, neither crushed nor ground, of subheading 0712.90 or any other chapter; or

(B) A change to any other good of subheading 0712.90 from any other chapter.

3. A change to headings 0713 through 0714 from any other chapter.

Chapter 8.

1. A change to headings 0801 through 0814 from any other chapter.
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 Chapter 9.

1. A change to subheadings 0901.11 through 0901.12 from any other chapter.

1A. A change to subheading 0901.21 from any other subheading.

1B. A change to subheading 0901.22 from any other subheading, except from subheading 0901.21.

1C. A change to subheading 0901.90 from any other chapter.

2. A change to heading 0902 from any other subheading.

3. A change to heading 0903 from any other chapter.

4. (A) A change to crushed, ground, or powdered spices put up for retail sale of subheadings 0904.11 through 0910.99 from spices that are not crushed, ground, or powdered of subheadings 0904.11 through 0910.99, or from any other subheading; or

(B) A change to mixtures of spices or any good of subheadings 0904.11 through 0910.99 other than crushed, ground, or powdered spices put up for retail sale from any other subheading.

Chapter 10.

1. A change to headings 1001 through 1008 from any other chapter.

Chapter 11.

1. A change to headings 1101 through 1109 from any other chapter.

Chapter 12.

1. A change to headings 1201 through 1207 from any other chapter.

2. A change to subheadings 1208.10 through 1209.30 from any other chapter.

3. (A) A change to celery seeds, crushed or ground, of subheading 1209.91 from celery seeds, neither crushed nor ground, of subheading 1209.91 or any other chapter; or

(B) A change to any other good of subheading 1209.91 from any other chapter.

4. A change to subheadings 1209.99 through 1211.40 from any other chapter.

5. (A) A change to basil, rosemary or sage, crushed or ground, of subheading 1211.90 from basil, rosemary or sage, neither crushed nor ground, of subheading 1211.90 or any other chapter; or

(B) A change to any other good of subheading 1211.90 from any other chapter.

6. A change to headings 1212 through 1214 from any other chapter

Chapter 13.

1. A change to headings 1301 through 1302 from any other chapter, except from concentrates of poppy straw of subheading 2939.11.

Chapter 14.

1. A change to headings 1401 through 1404 from any other chapter.

Chapter 15.

1. A change to headings 1501 through 1518 from any other chapter, except from heading 3823.