PUBLIC LAW 108–78—SEPT. 3, 2003
117 STAT. 957
(A) CLAIM FOR PREFERENTIAL TREATMENT.—A person claiming preferential tariff treatment 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. (B) INVENTORY MANAGEMENT METHOD.—In this subsection, the term ‘‘inventory management method’’ means— (i) averaging; (ii) ‘‘last-in, first-out’’; (iii) ‘‘first-in, first-out’’; or (iv) any other method— (I) recognized in the generally accepted accounting principles of the country in which the production is performed (whether Singapore or the United States); or (II) otherwise accepted by that country. (2) ELECTION OF INVENTORY METHOD.—A person selecting an inventory management method under paragraph (1) 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. (h) PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE.— Packaging materials and containers in which a good is packaged for retail sale, if classified with the good, 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 Annex 3A of the Agreement 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 nonoriginating materials, as the case may be, in calculating the regional value-content of the good. (i) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.— Packing materials and containers in which a good is packed for shipment shall be disregarded in determining whether— (1) the nonoriginating materials used in the production of a good undergo an applicable change in tariff classification set out in Annex 3A of the Agreement; and (2) the good satisfies a regional value-content requirement. (j) INDIRECT MATERIALS.—An indirect material shall be considered to be an originating material 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. (k) THIRD COUNTRY OPERATIONS.—A good shall not be considered to be an originating good by reason of having undergone production that satisfies the requirements of subsection (a) if, subsequent to that production, the good undergoes further production or any other operation outside the territories of Singapore and the United States, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the territory of Singapore or the United States. (l) SPECIAL RULE FOR APPAREL GOODS LISTED IN CHAPTER 61 OR 62 OF THE HTS.— (1) IN GENERAL.—An apparel good listed in chapter 61 or 62 of the HTS 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, the United States, or both, from fabric or yarn, regardless of origin, designated
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