117 STAT. 916
PUBLIC LAW 108–77—SEPT. 3, 2003 (II) the good otherwise satisfies any applicable regional value-content or other requirements specified in Annex 4.1 of the Agreement; and (ii) satisfies all other applicable requirements of this section; or (C) the good is produced entirely in the territory of Chile, the United States, or both, exclusively from materials described in subparagraph (A) or (B). (2) SIMPLE COMBINATION OR MERE DILUTION.—A good shall not be considered to be an originating good and a material shall not be considered to be an originating material by virtue of having undergone— (A) simple combining or packaging operations; or (B) mere dilution with water or another substance that does not materially alter the characteristics of the good or material. (b) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.— (1) IN GENERAL.—Except as provided in paragraphs (2) and (3), a good that does not undergo a change in tariff classification pursuant to Annex 4.1 of the Agreement is an originating good if— (A) the value of all nonoriginating materials that are used in the production of the good and do not undergo the applicable change in tariff classification does not exceed 10 percent of the adjusted value of the good; (B) the value of such nonoriginating materials is included in the value of nonoriginating materials for any applicable regional value-content requirement; and (C) the good meets all other applicable requirements of this section. (2) EXCEPTIONS.—Paragraph (1) does not apply to the following: (A) A nonoriginating material provided for in chapter 4 of the HTS, or a nonoriginating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90 of the HTS, that is used in the production of a good provided for in chapter 4 of the HTS. (B) A nonoriginating material provided for in chapter 4 of the HTS, or nonoriginating dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 of the HTS, that are used in the production of the following goods: (i) Infant preparations containing over 10 percent in weight of milk solids provided for in subheading 1901.10 of the HTS. (ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20 of the HTS. (iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90 of the HTS. (iv) Goods provided for in heading 2105 of the HTS. (v) Beverages containing milk provided for in subheading 2202.90 of the HTS.
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