page 972    Panama
   Heading Rule 1: For the purposes of determining the origin of a good of tariff item 9619.00.31, 9619.00.41, 9619.00.43, 9619.00.46,    9619.00.61, 9619.00.64, 9619.00.68, 9619.00.33, 9619.00.48, 9619.00.71, 9619.00.74, 9619.00.78, 9619.00.79, or 9619.00.90, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the change of tariff classification requirements set out in the rule for that good.

Heading Rule 2: Notwithstanding Heading Rule 1, a good of tariff item 9619.00.31,9619.00.41, 9619.00.43, 9619.00.46, 9619.00.61, 9619.00.64, 9619.00.68, 9619.00.33, 9619.00.48, 9619.00.71, 9619.00.74, 9619.00.78, 9619.00.79, or 9619.00.90 containing fabrics of subheading 5806.20 or heading 6002 shall be considered originating only if such fabrics are both formed from yarn and finished in the territory of Colombia or of the United States, or both.

Heading Rule 3: Notwithstanding Heading Rule 1, a good of tariff item 9619.00.31,9619.00.41, 9619.00.43, 9619.00.46, 9619.00.61, 9619.00.64, 9619.00.68, 9619.00.33, 9619.00.48, 9619.00.71, 9619.00.74, 9619.00.78, 9619.00.79, or 9619.00.90 containing sewing thread of heading 5204 or 5401 shall be considered originating only if such sewing thread is both formed and finished in the territory of Colombia or of the United States, or both.

27. (A) A change to sanitary towels (pads) and tampons and similar articles of textile wadding of heading 9619 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311, 5401 through 5402, subheadings 5403.33 through 5403.39, 5403.42 through heading 5408, or chapter 55; or

(B) A change to tariff items 9619.00.31, 9619.00.41, 9619.00.43, 9619.00.46, 9619.00.61, 9619.00.64, or 9619.00.68, from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311, 5401 through 5402, subheadings 5403.33 through 5403.39, 5403.42 through heading 5408, headings 5508 through 5516, or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Colombia or of the United States, or both; or

(C) A change to a tariff items 9619.00.33, 9619.00.48, 9619.00.71, 9619.00.74, 9619.00.78, 9619.00.79, or 9619.00.90, from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311, 5401 through 5402, subheadings 5403.33 through 5403.39, 5403.42 through heading 5408, or headings 5508 through 5516, 5801 through 5802, or 6001 through 6006, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled the territory of Colombia or of the United States, or both; or

(D) A change to any other good of heading 9619 from any other heading.

28. (A) A change to monopods, bipods, tripods and similar articles of iron or steel of heading 9620 from any other heading, except heading 7325; or

(B) A change to any other good of heading 9620 from any other heading.

Chapter 97.

1. A change to subheadings 9701.10 through 9701.90 from any other subheading.

2. A change to headings 9702 through 9706 from any other heading.

35. United States-Panama Trade Promotion Agreement.

(a) Originating goods under the terms of the United States-Panama Trade Promotion Agreement are subject to duty as provided herein. For the purposes of this note, goods of Panama, subject to subdivisions (b) through (o) 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 “PA” in parentheses are eligible for the tariff treatment, and any applicable quantitative limitations, set forth in the “Special” subcolumn, in accordance with sections 201 and 202 of the United States-Panama Trade Promotion Agreement Implementation Act (Pub.L. 112-43; 125 Stat. 497).

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

(i) the good is wholly obtained or produced entirely in the territory of Panama or of the United States, or both;
page 973    Panama
  (ii) the good is produced entirely in the territory of Panama 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 (o) of this note; or

(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and

satisfies all other applicable requirements of this note and of applicable regulations; or

(iii) the good is produced entirely in the territory of Panama or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.

(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 “wholly obtained or produced entirely in the territory of Panama or of the United States, or both” means any of the following–

(A) plants and plant products harvested or gathered in the territory of Panama or of the United States, or both;

(B) live animals born and raised in the territory of Panama or of the United States, or both;

(C) goods obtained in the territory of Panama or of the United States, or both, from live animals;

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

(E) minerals and other natural resources not included in subdivisions (A) through (D) that are extracted or taken from the territory of Panama or of the United States, or both;

(F) fish, shellfish and other marine life taken from the sea, seabed or subsoil outside the territory of Panama or of the United States, or both, by–

(i) a vessel that is registered or recorded with Panama and flying the flag of Panama, or

(ii) a vessel that is documented under the laws of the United States;

(G) goods produced on board a factory ship from goods referred to in subdivision (F), if such factory ship–

(i) is registered or recorded with Panama and flies the flag of Panama, or

(ii) is a vessel that is documented under the laws of the United States;

(H) (i) goods taken by Panama or a person of Panama from the seabed or beneath the seabed or subsoil outside the territory of Panama, if Panama has rights to exploit such seabed or subsoil, or

(ii) goods taken by the United States or a person of the United States from the seabed or beneath the seabed or subsoil outside the territory of the United States, if the United States has rights to exploit such seabed or subsoil;

(I) goods taken from outer space, if the goods are obtained by Panama or the United States or a person of Panama or the United States and not processed in the territory of a country other than Panama or the United States;

(J) waste and scrap derived from–

(1) manufacturing or processing operations in the territory of Panama or of the United States, or both, or

(2) used goods collected in the territory of Panama or of the United States, or both, if such goods are fit only for the recovery of raw materials;
page 974    Panama
    (K) recovered goods derived in the territory of Panama or of the United States, or both, from used goods, and used in the territory of Panama or of the United States, or both, in the production of remanufactured goods; or

(L) goods, at any stage of production, produced in the territory of Panama or of the United States, or both, exclusively from–

(i) goods referred to in any of subdivisions (A) through (J) above, or

(ii) the derivatives of goods referred to in clause (L)(i).

(ii) (A) For the purposes of subdivision (i)(K), the term “recovered goods” means materials in the form of individual parts that are the result of--

(1) the disassembly of used goods 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) The term “remanufactured good” for purposes of this note means a good that is classified under chapter 84, 85, 87 or 90 or heading 9402, other than a good classified under heading 8418 or 8516, and that--

(1) is entirely or partially comprised of recovered goods, and

(2) has a similar life expectancy and enjoys a factory warranty similar to such a 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, including a part or an ingredient, and the term “used” means utilized or consumed in the production of goods;

(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 good or nonoriginating material” is a good or material, as the case may be, that does not qualify as originating under this note.

(D) For the purposes of this note, the term “production” means growing, mining, harvesting, fishing, raising, 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 Panama or of the United States.

(iii) Transit and transshipment. 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--

(A) undergoes further production or any other operation outside the territory of Panama 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 Panama or of the United States, or

(B) does not remain under the control of customs authorities in the territory of a country other than Panama or the United States.

(d) Textile and apparel articles.

(i) For purposes of this note, a textile or apparel good provided for in chapters 42, 50 through 63, 70 and 94 of the tariff schedule is an originating good if:

(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note as a result of production operations occurring entirely in the territory of Panama or of the United States, or both, or the good otherwise satisfies the applicable requirements of this note where a change in tariff classification is not required, and
page 975    Panama
    (B) the good satisfies any other applicable requirements of this note.

The provisions of subdivision (o) of this note shall not apply in determining the country of origin of a textile or apparel good for nonpreferential purposes.

(ii) Subject to the provisions of subdivision (d)(v) 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 (o) of this note, shall nonetheless be considered to be an originating good if--

(A) the total weight of all such fibers or yarns in that component is not more than 10 percent of the total weight of that component; or

(B) the good contains nylon filament yarn (other than elastomeric yarn) that is classifiable under subheading 5402.11.30, 5402.11.60, 5402.19.30, 5402.19.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.45.10, 5402.45.90, 5402.51.00 or 5402.61.00 of the tariff schedule and that is a product of Israel, Canada or Mexico.

Notwithstanding the preceding sentence, a textile or apparel good provided for in the tariff schedule chapters enumerated in subdivision (d)(i) and 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 and finished in the territory of Panama or of the United States, or both. For purposes of this note, the term “elastomeric yarns” does not include latex.

(iii) For purposes of this subdivision, in the case of a good that is a fabric, yarn or fiber, the term “component of the good that determines the tariff classification of the good” means all of the fibers in the good.

(iv) Notwithstanding the rules set forth in subdivision (o) of this note, textile or apparel goods classifiable as goods put up in sets for retail sale under general rule of interpretation 3 of the tariff schedule shall not be considered to be originating goods unless (A) each of the goods in the set is an originating good; or (B) the total value of the nonoriginating goods in the set does not exceed 10 percent of the adjusted value of the set.

(v) For purposes of this note–

(A) the expression “wholly formed and finished” means:

(1) when used in reference to fabrics, all production processes and finishing operations necessary to produce a finished fabric ready for use without further processing, and such processes and operations include formation processes, such as weaving, knitting, needling, tufting, felting, entangling or other such processes, and finishing operations, including bleaching, dyeing and printing; and

(2) when used in reference to yarns, all production processes and finishing operations, beginning with the extrusion of filaments, strips, film or sheet, and including drawing to fully orient a filament or slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with a finished yarn or plied yarn.

(B) with respect to a textile or apparel good provided for in the tariff schedule chapters enumerated above, the term “wholly” means that the good is entirely of the named material.

(vi) Textile or apparel goods of Panama provided for in chapters 61 through 63 or subheading 9404.90 of the tariff schedule that are not originating goods under the terms of this note shall be eligible for the duty treatment set forth in heading 9822.09.61 under the terms of the U.S. note applicable thereto.

(e) De minimis.

(i) Except as provided herein and in subdivision (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 (o) of this note is an originating good if–

(A) the value of all nonoriginating materials that are used in the production of the good and that do not undergo the applicable change in tariff classification set forth in subdivision (o) of this note does not exceed 10 percent of the adjusted value of the good;
page 976    Panama
    (B) the value of such nonoriginating materials is included in the value of nonoriginating materials for any applicable regional value-content requirement for the good under this note; and

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

Notwithstanding subdivisions (i)(A) through (C) above and the rules set forth in subdivision (o) of this note, goods (other than textile or apparel goods) classifiable as goods put up in sets for retail sale under general rule of interpretation 3 of the tariff schedule shall not be considered to be originating goods unless (1) each of the goods in the set is an originating good; or (2) the total value of the nonoriginating goods in the set does not exceed 15 percent of the adjusted value of the set.

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

(A) a nonoriginating material provided for in chapter 4, or a nonoriginating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, that is used in the production of a good provided for in chapter 4;

(B) a nonoriginating material provided for in chapter 4, or a nonoriginating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90, that is used in the production of any of the following goods:

(1) infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10;

(2) mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20;

(3) dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90;

(4) goods provided for in heading 2105;

(5) beverages containing milk provided for in subheading 2202.90; or

(6) animal feeds containing over 10 percent by weight of milk solids provided for in subheading 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 fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, provided for in subheading 2106.90 or 2202.90;

(D) a nonoriginating material provided for in heading 0901 or 2101 that is used in the production of a good provided for in heading 0901 or 2101;

(E) a nonoriginating material provided for in heading 1006 that is used in the production of a good provided for in heading 1102 or 1103 or subheading 1904.90;

(F) a nonoriginating material provided for in chapter 15 that is used in the production of a good provided for in chapter 15;

(G) 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;

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

(I) except as provided in subdivisions (A) through (H) above and subdivision (o) of this note, a nonoriginating material used in the production of a good provided for in any of chapters 1 through 24, unless the nonoriginating material is provided for in a different subheading than the good for which origin is being determined under this note.