97 STAT. 388 PUBLIC LAW 98-67 —AUG. 5, 1983 Regulations. "Direct costs of processing operations. " Exceptions. 19 USC 2461. 19 USC 1202. "Sugar and beef products." wealth of Puerto Rico and the United States Virgin Islands. If the cost or value of materials produced in the customs territory of the United States (other than the Commonwealth of Puerto Rico) is included with respect to an article to which this paragraph applies, an amount not to exceed 15 per centum of the appraised value of the article at the time it is entered that is attributed to such United States cost or value may be applied toward determining the percent- age referred to in subparagraph (B). (2) The Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out this subsection including, but not limited to, regulations providing that, in order to be eligible for duty-free treatment under this title, an article must be wholly the growth, product, or manufacture of a beneficiary country, or must be a new or different article of commerce which has been grown, produced, or manufactured in the beneficiary country; but no article or material of a beneficiary country shall be eligible for such treatment by virtue of having merely undergone— (A) simple combining or packaging operations, or (B) mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article. (3) As used in this subsection, the phrase "direct costs of process- ing operations" includes, but is not limited to— (A) all actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchandise, including fringe benefits, on-the-job training and the cost of engineering, supervisory, quality control, and similar personnel; and (B) dies, molds, tooling, and depreciation on machinery and equipment which are allocable to the specific merchandise. Such phrase does not include costs which are not directly attribut- able to the merchandise concerned or are not costs of manufacturing the product, such as (i) profit, and (ii) general expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufacture, or assem- bly of the merchandise, such as administrative salaries, casualty and liability insurance, advertising, and salesmen's salaries, com- missions or expenses. (b) The duty-free treatment provided under this title shall not apply to- ll) textile and apparel articles which are subject to textile agreements; (2) footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel not designated at the time of the effective date of this title as eligible articles for the purpose of the generalized system of preferences under title V of the Trade Act of 1974; (3) tuna, prepared or preserved in any manner, in airtight containers; (4) petroleum, or any product derived from petroleum, pro- vided for in part 10 of schedule 4 of the TSUS; or (5) watches and watch parts (including cases, bracelets and straps), of whatever type including, but not limited to, mechani- cal, quartz digital or quartz analog, if such watches or watch parts contain any material which is the product of any country with respect to which TSUS column 2 rates of duty apply. (c)(1) As used in this subsection— (A) The term "sugar and beef products" means—
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