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(ii) Notwithstanding any other provision of this note, an apparel good of chapter 61 or 62 of the tariff schedule shall be considered to be an originating good if it is both cut (or knit to shape) and sewn or otherwise assembled in the territory of Singapore or of the United States, or both, from fabric or yarn, regardless of the origin of such fabric or yarn, designated by the appropriate United States government authority as fabric or yarn not available in commercial quantities in a timely manner in the United States. Such designation must have been made in a notice published in the Federal Register on or before November 15, 2002, identifying apparel goods made from such fabric or yarn as eligible for entry into the United States under subheading 9819.11.24 or 9820.11.27 of chapter 98 of the tariff schedule. For purposes of this subdivision, reference in such a notice to yarn or fabric formed in the United States is deemed to include yarn or fabric formed in Singapore.
(e) De minimis.
(i) A good, other than a textile or apparel good described in subdivision (d) of this note, that does not undergo a change in tariff classification pursuant to subdivision (o) of this note shall nonetheless be considered to be an originating good if–
(A) the value of all nonoriginating materials used in the production of the good that do not undergo the required change in tariff classification does not exceed 10 percent of the adjusted value of the good;
(B) if the good is subject to a regional value-content requirement under the terms of subdivision (g) or (o) of this note, the value of such nonoriginating materials is taken into account in calculating the regional value content of the good; and
(C) the good meets all other applicable criteria set forth in this note for qualifying as an originating good.
(ii) Subdivision (e)(i) does not apply to–
(A) a nonoriginating material provided for in chapter 4 or in subheading 1901.90 that is used in the production of a good provided for in chapter 4;
(B) a nonoriginating material provided for in chapter 4 or in subheading 1901.90 that is used in the production of a good provided for in the following provisions: subheadings 1901.10, 1901.20 or 1901.90; heading 2105; or subheadings 2106.90, 2202.90 or 2309.90;
(C) a nonoriginating material provided for in heading 0805 or subheadings 2009.11 through 2009.39 that is used in the production of a good provided for in subheadings 2009.11 through 2009.39 or in subheading 2106.90 or 2202.90;
(D) a nonoriginating material provided for in chapter 15 that is used in the production of a good provided for in headings 1501 through 1508, 1512, 1514 or 1515;
(E) a nonoriginating material provided for in heading 1701 that is used in the production of a good provided for in headings 1701 through 1703;
(F) a nonoriginating material provided for in chapter 17 or heading 1805 that is used in the production of a good provided for in subheading 1806.10;
(G) a nonoriginating material provided for in headings 2203 through 2208 that is used in the production of a good provided for in headings 2207 or 2208; and
(H) a nonoriginating material used in the production of a good provided for in chapters 1 through 21, inclusive, unless the nonoriginating material is provided for in a different subheading than the good for which origin is being determined under this note.
(iii) For the purposes of this note, the term “adjusted value” means the value determined under articles 1 through 8, article 15 and the corresponding interpretative notes of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade (the Customs Valuation Agreement), except that such value may be adjusted to exclude any costs, charges or 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.
(f) Accumulation.
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(i) For purposes of this note, originating materials from the territory of either Singapore 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.
(ii) A good is an originating good when it is produced in the territory of Singapore or of the United States, or both, by one or more producers, provided that the good satisfies all of the applicable requirements of this note.
(g) Regional value content.
(i) Where a rule set forth in subdivision (o) of this note specifies a regional value content for a good, the regional value content of such good shall be calculated, at the choice of the person claiming the tariff treatment authorized by this note for such good, on the basis of one of the following methods, unless otherwise specified herein:
(A) For the build-down method, the regional value content may be calculated on the basis of the formula RVC = ((AV - VNM)/AV) x 100, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value; and VNM is the value of non-originating materials that are acquired and used by the producer in the production of the good; or
(B) For the build-up method, the regional value content may be calculated on the basis of the formulaRVC = (VOM /AV) x 100, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value; and VOM is the value of originating materials that are acquired or self-produced and are used by the producer in the production of the good.
(ii) Value of materials.
(A) For purposes of calculating the regional value content of a good under subdivision (i) and for purposes of applying the de minimis provisions of subdivision (e) of this note, the value of a material is:
(1) in the case of a material imported by the producer of the good, the adjusted value of the material;
(2) in the case of a material acquired in the territory where the good is produced, except for a material to which subdivision (3) below applies, the adjusted value of the material; or
(3) in the case of a material that is self-produced, or in a case in which the relationship between the producer of the good and the seller of the material influenced the price actually paid or payable for the material, including a material obtained without charge, the sum of–
(I) all expenses incurred in the production of the material, including general expenses; and
(II) an amount for profit.
(B) The value of materials may be adjusted as follows:
(1) for originating materials, the following expenses, if not included under subdivision (A) above, may be added to the value of the originating material:
(I) the costs of freight, insurance, packing and all other costs incurred in transporting the material to the location of the producer;
(II) duties, taxes and customs brokerage fees on the material paid in the territory of Singapore or of the United States, or both, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable; and
(III) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-product; and
(2) for non-originating materials, if included under subdivision (A) above, the following expenses may be deducted from the value of the nonoriginating material:
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(I) the costs of freight, insurance, packing and all other costs incurred in transporting the material to the location of the producer;
(II) duties, taxes and customs brokerage fees on the material paid in the territory of Singapore or of the United States, or both, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, including credit against duty or tax paid or payable;
(III) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-products;
(IV) the cost of processing incurred in the territory of Singapore or of the United States in the production of the non-originating material; and
(V) the cost of originating materials used in the production of the nonoriginating material in the territory of Singapore or of the United States.
(h) Accessories, spare parts and tools.
Accessories, spare parts or tools that are delivered with a good and that form part of the good's standard accessories, spare parts or tools shall be treated as originating goods for purposes of this note if the good is an originating good, and shall be disregarded in determining whether all the nonoriginating materials used in the production of the good undergo an applicable change in tariff classification specified in subdivision (o) of this note, provided that:
(i) the accessories, spare parts or tools are not invoiced separately from the good;
(ii) the quantities and value of the accessories, spare parts or tools are customary for the good; and
(iii) if the good is subject to a regional value-content requirement, the value of the accessories, spare parts or tools shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good under subdivision (g) of this note.
(i) Fungible goods and materials.
(i) A person claiming the 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 Singapore 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.
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(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 the nonoriginating materials used in the production of the good undergo the applicable change in tariff classification set out in subdivision (o) 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 non-originating materials, as the case may be, in calculating the regional value content of the good.
(ii) Packing materials and containers in which a good is packed 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 (o) 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, and its value shall be the cost registered in the accounting records of the producer of the good. The term “indirect material” means a good used in the production, 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 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 SFTA country is claimed under the provisions of this note, shall be prepared to submit, upon request by the appropriate customs officer, a statement setting forth the reasons that the good qualifies as an originating good under the provisions of this note, including pertinent cost and manufacturing information, as provided in pertinent regulations.
(ii) Importers shall maintain for a period of five years after the date of importation their records relating to the importation of the good and shall, upon request by the appropriate customs officer, make available records which are necessary to demonstrate that a good qualifies as an originating good under the provisions of this note, including records concerning:
(A) the purchase of, cost of, value of and payment for the good;
(B) the purchase of, cost of, value of and payment for all materials, including indirect materials, used in the production of the good; and
(C) the production of the good in the form in which the good is exported.
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(iii) For purposes of determining whether a good imported into the customs territory of the United States from the territory of Singapore qualifies as an originating good under the provisions of this note, the appropriate customs officer may conduct a verification by means of–
(A) requests for information from the importer;
(B) written requests for information to an exporter or a producer in the territory of Singapore or of the United States;
(C) requests for the importer to arrange for the producer or exporter to provide information directly to the country conducting the verification;
(D) information received directly by the appropriate customs officer from an exporter or a producer as a result of a process described in subdivision (i) above;
(E) visits to the premises of an exporter or a producer in the territory of Singapore or of the United States, in accordance with any procedures that these countries jointly adopt pertaining to the verification, as set forth in pertinent regulations; or
(F) such other procedures as the United States and Singapore may agree, as set forth in pertinent regulations.
(m) Goods that shall be considered originating goods. For the purposes of subdivision (b)(ii) of this note, goods that, in their condition as imported, are classifiable in the tariff provisions enumerated in the first column and are described opposite such provisions, when such goods are imported into the customs territory of the United States from the territory of Singapore, shall be considered originating goods for the purposes of this note:
Heading/Subheading Articles Subject to this Note
(1) 3818 Chemical elements doped for use in electronics, in the form of disks, wafers or similar forms; chemical compounds doped for use in electronics
(2) 7017.10.30, 7020.00.30 Quartz reactor tubes and holders designed for insertion into diffusion and oxidation furnaces for production of semiconductor wafers
(3) 8443.31.00, 8443.32.10, 8443.39.00, Plotters, whether input or output units of the automatic data 8443.99.50, 8471.49.00, 9017.10.40, processing machines of heading 8471 or drawing or drafting 9017.20.70, 9017.90.01 machines of heading 9017
(4) 8443.31.00, 8443.32.50 Facsimile machines
(5) 8443.31.00, 8443.32.10, 8443.99, 8471.60, Input or output units (including printers), whether or not 8528.42.00, 8528.52.00, 8528.62.00 containing storage units in the same housing; parts of printers
(6) 8443.32.50 Teleprinters
(7) 8443.39.10 Electrostatic photocopying apparatus, operating by reproducing the original image directly onto the copy (direct process)
(8) 8443.39.30 Other photocopying apparatus, incorporating an optical system