118 STAT. 935 PUBLIC LAW 108–286—AUG. 3, 2004 (B) INVENTORY MANAGEMENT METHOD.—In this sub section, 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 Australia 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 a particular fungible good or fungible material shall continue to use that method for that fungible good or fungible material throughout the fiscal year of that person. (i) 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 4–A or Annex 5–A 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. (j) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.— Packing materials and containers for shipment shall be disregarded in determining whether— (1) the nonoriginating materials used in the production of a good undergo the applicable change in tariff classification set out in Annex 4–A or Annex 5–A of the Agreement; and (2) the good satisfies a regional value content requirement. (k) INDIRECT MATERIALS.—An indirect material shall be treated as 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. (l) THIRD COUNTRY OPERATIONS.—A good that has undergone production necessary to qualify as an originating good under sub section (b) shall not be considered to be an originating good if, subsequent to that production, the good undergoes further produc tion or any other operation outside the territory of Australia 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 Australia or the United States. (m) TEXTILE AND APPAREL GOODS CLASSIFIABLE AS GOODS PUT UPINSETS.—Notwithstanding the rules set forth in Annex 4– A of the Agreement, textile or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3 of the HTS shall not be considered to be origi nating goods unless each of the goods in the set is an originating good or the total value of the nonoriginating goods in the set does not exceed 10 percent of the value of the set determined for purposes of assessing customs duties. (n) DEFINITIONS.—In this section:
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