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An indirect material shall be disregarded in determining whether a good is an originating good under the terms of this note, except for purposes of subdivision (b)(ii)(B) of this note. The term “indirect material” means a good used in the production, testing or inspection of another good but not physically incorporated into that other good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of another 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 or 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 good that is not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production.
(m) Record-keeping requirements and verification; claims for preferential treatment.
(i) An importer claiming preferential tariff treatment for a good imported into the territory of the United States under the provisions of this note shall comply in all respects with applicable Customs regulations. Importers 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.
(ii) For purposes of determining whether a good imported into the customs territory of the United States from the territory of Korea 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 Korea may agree, as set forth in pertinent regulations.
(iii) An importer may make a claim for the tariff and other treatment provided for under the terms of this note based on either--
(A) a written or electronic certification by the importer, exporter or producer; or
(B) the importer's knowledge that the good is an originating good, including reasonable reliance on information in the importer's possession that the good is an originating good, in such form and manner as may be required in applicable regulations.
(n) Interpretation of rules of origin.
(i) Unless otherwise specified, a rule in subdivision (o) 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 (o) 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) Reference to weight in the rules set forth in subdivision (o) of this note for goods provided for in chapters 1 through 24 of the tariff schedule means dry weight, unless otherwise specified in the tariff schedule.
(iii) A requirement of a change in tariff classification in subdivision (o) of this note applies only to nonoriginating materials.
(iv) If goods are classified as a set as a result of the application of rule 3 of the general rules of interpretation of the tariff schedule, the set is originating under this note only if each good in the set is originating. Notwithstanding the first sentence of this subdivision, a set of goods is originating if the value of all the nonoriginating goods in the set does not exceed 15 percent of the adjusted value of the set.
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(v) A good of chapters 1 through 40, inclusive, shall not be considered to be originating solely by reason of mere dilution with water or another substance that does not materially alter the characteristics of the good.
(vi) For purposes of applying this note to goods of chapters 6 through 14, inclusive, agricultural and horticultural goods grown in the territory of Korea or of the United States shall be treated as originating therein even if grown from seed, bulbs, rootstock, cuttings, grafts, shoots, buds or other live parts of plants imported from a country other than Korea or the United States.
(vii) For purposes of applying this note to goods of chapters 27 through 40, inclusive (except a good of heading 3823), of the tariff schedule,a good that undergoes a chemical reaction as defined herein shall be treated as an originating good for purposes of this note, notwithstanding any product-specific rules enumerated in this note, provided all other applicable requirements are satisfied. A “chemical reaction” is a process (including a biochemical process) which 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 purposes of this note:
(A) dissolving in water or other solvents;
(B) the elimination of solvents including solvent water; or
(C) the addition or elimination of water of crystallization.
(viii) A good of heading in chapters 28 through 40 that satisfies one or more of the provisions enumerated in this subdivision shall be treated as an originating good for purposes of this note, except as otherwise specified in such provisions. Notwithstanding the preceding sentence, a good is an originating good if it meets the applicable change in tariff classification or satisfies the applicable value content requirement specified in the rules of origin in subdivision (o) for such chapters.
(A) A good of chapters 28 through 40 that is subject to purification shall be treated as an originating good provided that the purification occurs in the territory of Korea or of the United States, or both and results in the following:
(1) the elimination of not less than 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.
(B) A good of chapters 30, 31 or 33 through 40 (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 different essential 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 Korea or of the United States, or both.
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(C) A good of chapters 30, 31, 33 or 39 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 having different essential physical or chemical characteristics from the input materials, occurs in the territory of Korea or of the United States, or both.
(D) 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 Korea or of the United States, or both. For the purposes of this subdivision, “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.
(E) A good of chapters 28 through 39 shall be treated as an originating good if the isolation or separation of isomers from mixtures of isomers occurs in the territory of Korea or of the United States, or both.
(F) A good of chapters 28 through 38 that undergoes a change from one classification to another in the territory of Korea 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 Korea or of the United States, or both.
(o) Product-specific rules
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, except from fowls of the species Gallus domesticus (chickens) of heading 0105.
Chapter 3.
Chapter rule 1: Fish, crustaceans, molluscs and other aquatic invertebrates shall be deemed originating even if they were cultivated from nonoriginating fry (immature fish at a post-larval stage, including fingerlings, parr, smolts and elvers) or larvae.
1. A change to headings 0301 through 0305 from any other chapter.
2. (A) A change to smoked goods of headings 0306 through 0308 from goods that are not smoked of headings 0306 through 0308 or from any other chapter; or
(B) A change to any other good of headings 0306 through 0308 from any other chapter.
Chapter 4.
1. A change to headings 0401 through 0410 from any other chapter, except from subheadings 1901.90 and 2106.90.
Chapter 5.
1. A change to 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 headings 0701 through 0714 from any other chapter.
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Chapter 8.
1. A change to headings 0801 through 0814 from any other chapter.
Chapter 9.
1. A change to subheadings 0901.11 through 0901.12 from any other chapter.
2. A change to subheading 0901.21 from any other subheading.
3. A change to subheading 0901.22 from any other subheading, except from subheading 0901.21.
4. A change to subheading 0901.90 from any other chapter.
5. A change to headings 0902 through 0903 from any other chapter.
6. A change to crushed, ground or powdered spices of subheadings 0904.11 through 0904.12 from spices that are not crushed, ground or powdered of subheadings 0904.11 through 0904.12, or from any other subheading; or
7. A change to mixtures of spices or any good of subheadings 0904.11 through 0904.12 other than crushed, ground, or powdered spices from any other subheading.
8. A change to subheadings 0904.21 through 0904.22 from any other chapter.
9. A change to subheadings 0905.10 through 0909.62 from any other subheading.
10. A change to subheadings 0910.11 through 0910.12 from any other chapter.
11. (A) A change to crushed, ground or powdered spices of subheadings 0910.20 through 0910.99 from spices that are not crushed, ground, or powdered of subheadings 0910.20 through 0910.99, or from any other subheading; or
(B) A change to mixtures of spices or any good of subheadings 0910.20 through 0910.99 other than crushed, ground or powdered spices from any other subheading.
Chapter 10.
1. A change to headings 1001 through 1008 from any other chapter.
Chapter 11.
1. A change to heading 1101 from any other chapter.
2. A change to headings 1102 through 1104 from any other chapter, except from heading 1006.
3. A change to heading 1105 from any other chapter, except from heading 0701.
4. A change to headings 1106 through 1109 from any other chapter.
Chapter 12.
1. A change to headings 1201 through 1214 from any other chapter.
Chapter 13.
1. A change to heading 1301 from any other chapter.
2. A change to subheadings 1302.11 through 1302.13 from any other chapter.
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3. A change to subheading 1302.19 from any other chapter, except from subheading 1211.20.
4. A change to subheadings 1302.20 through 1302.32 from any other chapter.
5. (A) A change to carrageenan of subheading 1302.39 from within that subheading or any other chapter, provided the nonoriginating materials of subheading 1302.39 do not exceed 50 percent by weight of the good;
(B) A change to any other good of subheading 1302.39 from any other chapter.
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.
2. A change to heading 1520 from any other heading.
3. A change to headings 1521 through 1522 from any other chapter.
Chapter 16 .
1. A change to headings 1601 through 1603 from any other chapter.
2. A change to subheadings 1604.11 through 1604.13 from any other chapter.
3. A change to subheading 1604.14 from any other chapter, except from chapter 3.
4. A change to subheadings 1604.14 through 1604.32 from any other chapter.
5. A change to heading 1605 from any other chapter.
Chapter 17.
1. A change to headings 1701 through 1703 from any other chapter.
2. A change to heading 1704 from any other heading.
Chapter 18.
1. A change to headings 1801 through 1802 from any other chapter.
2. A change to headings 1803 through 1805 from any other heading.
3. A change to subheading 1806.10 from any other heading, provided that such goods of 1806.10 containing 90 percent or more by dry weight of sugar do not contain nonoriginating sugar of chapter 17 and that goods of 1806.10 containing less than 90 percent by dry weight of sugar do not contain more than 35 percent by weight of non-originating sugar of chapter 17.
4. A change to subheading 1806.20 from any other heading.
5. A change to subheadings 1806.31 through 1806.90 from any other subheading.
Chapter 19.
1. A change to subheading 1901.10 from any other chapter, except from heading 1006, and rice products of subheadings 1102.90, 1103.19, 1103.20, 1104.19, 1104.29 and 1104.30, and provided that goods of subheading 1901.10 containing over 10 percent by weight of milk solids do not contain nonoriginating dairy goods of chapter 4.