page 581    Peru
 to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good.

1. 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 or 5310 through 5311, chapter 54, or 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 Oman or of the United States, or both.

2. A change to 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 or 5310 through 5311, chapter 54, or 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 Oman or of the United States, or both.

3. A change to tariff items 9619.00.21 or 9619.00.25 from any other chapter, except from heading 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, or chapters 54 through 55.

32. United States-Peru Trade Promotion Agreement Implementation Act.

(a) Goods for which entry is claimed under the terms of the United States-Peru Trade Promotion Agreement are subject to duty as set forth herein. For the purposes of this note, originating goods or goods described in subdivision (a)(ii), subject to the provisions of subdivisions (b) through (n) of this note, that are imported into the customs territory of the United States and entered under a provision--

(i) in chapters 1 through 97 of the tariff schedule for which a rate of duty appears in the “Special” subcolumn of column 1 followed by the symbol “PE” in parentheses, or

(ii) in chapter 98 or 99 of the tariff schedule where a rate of duty or other treatment is specified,

are eligible for the tariff treatment and quantitative limitations set forth therein in accordance with sections 201 through 203, inclusive, of the United States-Peru Trade Promotion Agreement Implementation Act (Pub. L. 110-138; 121 Stat. 1455).

(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 under the terms of this note if--

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

(ii) the good was produced entirely in the territory of Peru, 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; or

(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;

and the good satisfies all other applicable requirements of this note; or

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

(c) Definitions.

(i) For purposes of subdivision (b)(i) of this note, the expression “good wholly obtained or produced” means any of the following goods:

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

(B) live animals born and raised in the territory of Peru, the United States, or both;
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    (C) goods obtained in the territory of Peru, the United States, or both, from live animals;

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

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

(F) fish, shellfish and other marine life taken from the sea, seabed or subsoil outside the territory of Peru or the United States by a vessel that is registered or recorded with Peru and flying the flag of Peru or by a vessel that is documented under the laws of the United States;

(G) goods produced on board a factory ship from goods referred to subdivision (c)(F), provided such factory ship is a vessel that is registered or recorded with Peru and flies its flag or is a vessel that is documented under the laws of the United States;

(H) goods taken by Peru or a person of Peru, or by the United States or a person of the United States, from the seabed or subsoil outside the territorial waters of Peru or the United States, respectively, if Peru or the United States, as the case may be, has rights to exploit such seabed or subsoil;

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

(J) waste and scrap derived from--

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

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

(K) recovered goods derived in the territory of Peru, the United States, or both, from used goods, and utilized in the territory of Peru, the United States, or both, in the production of remanufactured good; and

(L) goods, at any stage of production, produced in the territory of Peru, the United States, or both, exclusively from goods referred to in subdivisions (A) through (J) above, or from their derivatives.

(ii) For the purposes of this note--

(A) the term “recovered goods” means materials in the form of individual parts that are the result of--

(i) the disassembly of used goods into individual parts; and

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

(B) the term “remanufactured goods” means an industrial good assembled in the territory of Peru or the United States, or both, that is classified in chapter 84, 85, 87 or 90 of the tariff schedule or heading 9402, other than a good classified in heading 8418 or 8516, that--

(i) is entirely or partially comprised of recovered goods; and

(ii) has a similar life expectancy and enjoys a factory warranty similar to such a good that is new.

(C) the term “material” means a good that is used in the production of another good, including a part or an ingredient;

(D) 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;
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   (E) the terms “nonoriginating good” or “nonoriginating material” mean a good or a material, as the case may be, that does not qualify as originating under this note;

(F) 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 Peru or the United States;

(G) the term “adjusted value” means the value 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, adjusted, if necessary, to exclude any costs, charges or other expenses incurred for transportation, insurance and related services incident to the international shipment of the merchandise from the country of exportation to the place of importation;

(H) the term “net cost” means total cost minus sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs and non-allowable interest costs that are included in the total cost; and

(I) the term “identical goods” means goods that are the same in all respects relevant to the rule of origin that qualifies the goods as originating goods.

(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--

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

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

(iv) Accumulation.

(A) Originating materials from the territory of Peru or 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.

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

(v) Goods classifiable as goods put up in sets.--Notwithstanding the rules set forth in subdivision (n) of this note, goods classifiable as goods put up in sets for retail sale as provided for in general rule of interpretation 3 to 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--

(1) in the case of a textile or apparel good, 10 percent of the adjusted value of the set; or

(2) in the case of a good, other than a textile or apparel good, 15 percent of the adjusted value of the set.

(d) Textile and apparel goods.

(i) 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 an originating good if--

(A) the total weight of all such fibers or yarns in that component is not more than ten percent of the total weight of that component; or
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    (B) such yarns are nylon filament yarns (other than elastomeric yarn) provided for in subheading 5402.10.30, 5402.10.60,      5402.19.30, 5402.19.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00 or      5402.61.00 of the tariff schedule from a country that is a party to an agreement with the United States establishing a free trade area which entered into force before January 1, 1995.

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 Peru, the United States, or both.

(ii) For the purposes of this subdivision--

(A) the term “elastomeric yarns” does not include latex; and

(B) a yarn is “wholly formed” in the territory of Peru or the United States if all the production processes and finishing operations, starting with the extrusion of filaments, strips, films or sheets, or the spinning of all fibers into yarn, or both, and ending with a finished yarn or plied yarn, took place in the territory of Peru or the United States, as the case may be.

(iii) For the purposes of subdivision (d)(i) or (d)(ii) of this note, in the case of a good that is a yarn, fabric 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) For the 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)); but such term does not encompass the following goods that are listed in Annex 3.29 of the Agreement specified in subdivision (a) of this note: wadding, gauze, bandages and the like (subheading 3005.90); woven, knitted or nonwoven fabrics coated, covered or laminated with plastics (subheading 3921.12, 3921.13 or 3921.90); footwear with soles and uppers of wool felt (subheading 6405.20); footwear uppers of which 50 percent or more of the external surface is textile material (subheading 6406.10); leg warmers and gaiters of textile material (subheading 6406.99); hat forms, hat bodies and hoods of felt and plateaux and manchons of felt (heading 6501); hat shapes, plaited or made by assembling strips of any material (heading 6502); felt hats and other felt headgear (heading 6503); hats and other headgear, plaited or made by assembling strips of any material (heading 6504); hats and other headgear, knitted or made up from lace or other textile material (subheading 6505.90); safety seat belts for motor vehicles (subheading 8708.21); parachutes, parts thereof and accessories therefor (heading 8804); watch straps, bands and bracelets of textile materials (subheading 9113.90); garments for dolls (subheading 9502.91); and woven ribbons of manmade fibers, other than those measuring less than 30 mm in width and permanently put up in cartridges (subheading 9612.10).

(v) With respect to a textile and apparel good as defined in subdivision (d)(iv) of this note, the term “wholly” means that the good is entirely of the named material.

(e) De minimis amounts of nonoriginating materials.

(i) Except as provided in subdivisions (d)(i), (e)(ii) and (m) below, a good that does not undergo a change in tariff classification pursuant to subdivision (n) of this note is an originating good if--

(A) the value of all nonoriginating materials that--

(1) are used in the production of the good, and

(2) do not undergo the applicable change in tariff classification set out in subdivision (n) of this note,

does not exceed 10 percent of the adjusted value of the good;

(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; and

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

(ii) Subdivision (e)(i) does not apply to--
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   (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 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, inclusive, 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 chapter 15 that is used in the production of a good provided for in any of headings 1501 through 1508, or any of headings 1511 through 1515;

(F) 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;

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

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

(I) a nonoriginating material that is a textile or apparel good.

(f) Regional value content.

(i) For purposes of subdivision (b)(ii)(B) of this note, except for goods to which subdivision (f)(iii) applies, the regional value content of a good referred to in subdivision (n) of this note, 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.

(A) For the build-down method, the regional value content of a good may be calculated on the basis of the formula

RVC = ((AV - VNM)/AV) X 100

where RVC is the regional value content of the good, expressed as a percentage; AV is the adjusted value of the good; 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.

(B) For the build-up method, the regional value content of a good may be calculated on the basis of the formula