country in which the good is produced (whether Aus-
tralia or the United States).
(b) ORIGINATING GOODS.—For purposes of this Act
and for purposes of implementing the preferential treat-
ment provided for under the Agreement, a good is an orig-
inating good if—
(1) the good is a good wholly obtained or pro-
duced entirely in the territory of Australia, the
United States, or both;
(2) the good—
(A) is produced entirely in the territory of
Australia, the United States, or both, and—
(i) each of the nonoriginating mate-
rials used in the production of the good
undergoes an applicable change in tariff
classification specified in Annex 4–A or
Annex 5–A of the Agreement;
(ii) the good otherwise satisfies any
applicable regional value-content require-
ment referred to in Annex 5–A of the
Agreement; or
(iii) the good meets any other require-
ments specified in Annex 4–A or Annex 5–
A of the Agreement; and
(B) the good satisfies all other applicable
requirements of this section;
(3) the good is produced entirely in the terri-
tory of Australia, the United States, or both, exclu-
sively from materials described in paragraph (1) or
(2); or
(4) the good otherwise qualifies as an origi-
nating good under this section.
(c) DE MINIMIS AMOUNTS OF NONORIGINATING MA-
TERIALS.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), a good that does not undergo a
change in tariff classification pursuant to Annex 5–
A of the Agreement is an originating good if—
(A) the value of all nonoriginating mate-
rials that—
(i) are used in the production of the
good, and
(ii) do not undergo the required
change in tariff classification,
does not exceed 10 percent of the adjusted
value of the good;
(B) the good meets all other applicable re-
quirements of this section; and
(C) the value of such nonoriginating mate-
rials is included in the value of nonoriginating
materials for any applicable regional value-con-
tent requirement for the good.
(2) EXCEPTIONS.—Paragraph (1) does not
apply to the following:
(A) A nonoriginating material provided for
in chapter 4 of the HTS or in subheading
1901.90 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 in subheading
1901.90 that is used in the production of a
good provided for in subheading 1901.10,
1901.20, or 1901.90, heading 2105, or sub-
heading 2106.90, 2202.90, or 2309.90.
(C) A nonoriginating material provided for
in heading 0805 or any of subheadings 2009.11
through 2009.39 that is used in the production
of a good provided for in any of subheadings
2009.11 through 2009.39, or in subheading
2106.90 or 2202.90.
(D) A nonoriginating material provided for
in chapter 15 of the HTS that is used in the
production of a good provided for in any of
headings 1501.00.00 through 1508, or in head-
ing 1512, 1514, or 1515.
(E) A nonoriginating material provided for
in heading 1701 that is used in the production
of a good provided for in any of headings 1701
through 1703.
(F) A nonoriginating material provided for
in chapter 17 of the HTS or heading
1805.00.00 that is used in the production of a
good provided for in subheading 1806.10.
(G) A nonoriginating material provided for
in any of headings 2203 through 2208 that is
used in the production of a good provided for
in heading 2207 or 2208.
(H) A nonoriginating material used in the
production of a good provided for in any of
chapters 1 through 21 of the HTS unless the
nonoriginating material is provided for in a dif-
ferent subheading than the good for which ori-
gin is being determined under this section.
(3) TEXTILE AND APPAREL GOODS.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), a textile or apparel good
that is not an originating good because certain
fibers or yarns used in the production of the