107 STAT. 2080 PUBLIC LAW 103-182—DEC. 8, 1993 satisfies the requirements of subsection (a) if, subsequent to that production, the good undergoes further production or any other operation outside the territories of the NAFTA countries, other than unloading, reloading, or any other operation necessary to preserve it in g^ood condition ortotransport the good to the territory of a NAFTA country. (1) NONQUALIFYING OPERATIONS. —A good shall not be consid- ' eredtobe an originating good merely by reason of— (1) mere dilution with water or another substance that does not materially alter the characteristics of the good; or (2) any production or pricing practice with respect to which it may be demonstrated, by a preponderance of evidence, that the object wastocircumvent this section. (m) INTERPRETATION AND APPLICATION,—For piirposes of this section: (1) The basis for anyterififclassification is the HTS. (2) Except as otherwise expressly provided, whenever in this section there is a reference to a heading or subheading such reference shall be a reference to a heading or subheading of the HTS. (3) In applying subsection (a)(4), the determination of whether a heading or subheading under the HTS provides for and specifically describes both a good and ite parts shall be made on the basis of the nomenclature of the heading or subheading, the rules of interpretetion, or notes of the HTS. (4) In applying the Customs Valuation Code— (A) the principles of the Customs Valuation Code shall apply to domestic transactions, with such modifications as may be required by the circimistances, as would apply to international transactions; (B) the provisions of this section shall take precedence over the Customs Valuation Code to the extent of any difierence; and (C) the definitions in subsection (o) shall take precedence over the definitions in the Customs Valuation Code to the extent of any difference. (5) All coste referred to in this section shall be recorded and mainteined in accordance with the Generally Accepted Accounting Principles applicable in theterritoryof the NAFTA country in which the good is produced. (n) ORIGIN OP AUTOMATIC DATA PROCESSING GOODS. — Notwithstanding any other provision of this section, when the NAFTA countries apply the most-favored-nation rate of duty described in paragraph 1 of section A of Annex 308.1 of the Agreement to a good provided for under the tariff provisions set out in Table 308.1.1 of such Annex, the good shall, upon importation from a NAFTA country, be deemed to originate in theterritoryof a NAFTA country for purposes of this section. (o) SPECIAL RULE FOR CERTAIN AGRICULTURAL PRODUCTS.— Notwithstanding any other provision of this section, for purposes of applying a rate of dutytoa good provided for in— (1) heading 1202 that is exported from the territoiy of Mexico, if the good is not wholly obteined in the territory of Mexico, (2) subheading 2008.11 that is exported from the territory of Mexico, if any material provided for in heading 1202 USC d
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