118 STAT. 934 PUBLIC LAW 108–286—AUG. 3, 2004 recoverable, including credit against duty or tax paid or payable. (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts. (B) NONORIGINATING MATERIAL.—The following expenses, if included in the value of a nonoriginating mate rial calculated under paragraph (1), may be deducted from the value of the nonoriginating material: (i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Australia, the United States, or both, to the location of the producer. (ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Australia, the United States, or both, other than duties or taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable. (iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts. (iv) The cost of processing incurred in the territory of Australia, the United States, or both, in the produc tion of the nonoriginating material. (v) The cost of originating materials used in the production of the nonoriginating material in the terri tory of Australia, the United States, or both. (g) ACCESSORIES, SPARE PARTS, OR TOOLS.— (1) IN GENERAL.—Subject to paragraph (2), accessories, spare parts, or tools delivered with a good that form part of the good’s standard accessories, spare parts, or tools shall— (A) be treated as originating goods if the good is an originating good; and (B) be disregarded in determining whether all the non originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 5–A of the Agreement. (2) CONDITIONS.—Paragraph (1) shall apply only if— (A) the accessories, spare parts, or tools are not invoiced separately from the good; (B) the quantities and value of the accessories, spare parts, or tools are customary for the good; and (C) if the good is subject to a regional value content requirement, the value of the accessories, spare parts, or tools is taken into account as originating or nonoriginating materials, as the case may be, in calculating the regional value content of the good. (h) FUNGIBLE GOODS AND MATERIALS.— (1) IN GENERAL.— (A) CLAIM FOR PREFERENTIAL TREATMENT.—A person claiming that a fungible good or fungible material is an originating good may base the claim either on the physical segregation of the fungible good or fungible material or by using an inventory management method with respect to the fungible good or fungible material.
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