Page:United States Statutes at Large Volume 107 Part 3.djvu/131

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PUBLIC LAW 103-182—DEC. 8, 1993 107 STAT. 2069 States in Annex 300-B is a specific or compound rate of duty, the President may substitute for the base rate an ad valorem rate that the President determines to be equivalent to the base rate. SEC. 202. RULES OF OBIGIN. 19 USC 3332. (a) ORIGINATING GOODS.— (1) IN GENERAL.—For purposes of implementing the tariff treatment and quantitative restrictions provided for under the Agreement, except as otherwise provided in this section, a good originates in the territory of a NAFTA countnr if— (A) ttte good is wholly obtained or produced entirely in the territory of one or more of the NAFTA countries; (B)(i) each nonoriginating material used in the production oftiiegood— (I) undergoes an applicable change in tariff classification set out in Annex 401 of the Agreement as a result of production occurring entirely in the territory of one or more of the NAFTA countries; or (II) where no change in tariff classification is required, the good otherwise satisfies the applicable requirements of such Annex; and (ii) the good satisfies all other applicable requirements of this section; (C) the good is produced entirely in the territory of one or more of the NAFTA countries exclusivelyfiromoriginating materials; or (D) except for a good provided for in chapters 61 through 63 of the HTS, the good is produced entirely in the territory of one or more of the NAFTA countries, but one or more of the nonoriginating materials, that are provided for as parts under the IirS and are used in the production of the good, does not undergo a change in tariff classification because— (i) the good was imported into the territorv of a NAFTA country in an tmassembled or a disassembled form but was classified as an assembled good pursuant to General Riile of Interpretation 2(a) of the HTS; or (iiXD the heading for the good provides for and specifically describes both the good itself and its parts and is not further subdivided into subheadings; or (II) the subheading for the good provides for and specifically describes both the good itself and its parts. (2) SPECIAL RULES. — (A) FOREIGN-TRADE ZONES.— Subparagraph (B) of paragraph (1) shall not apply to a ^ood produced in a foreigntrade zone or subzone (estabhshed pursuant to the Act of June 18, 1934, commonly known as the Foreign Trade Zones Act) that is entered for consimiption in the customs territory of the United States. (B) REGIONAL VALUE-CONTENT REQUIREMENT. —For purposes of subparagraph (D) of paragraph (1), a good shall be treated as originating in a NAFTA country if the regional value-content of the good, determined in accordance Mdth subsection (b), is not less than 60 percent where the transaction value method is used, or not less than