(C) The cost of waste or spoilage resulting
from the use of the material in the growth, pro-
duction, or manufacture of the good, less the
value of recoverable scrap.
(D) Taxes or customs duties imposed on
the material by Morocco, the United States, or
both, if the taxes or customs duties are not re-
mitted upon exportation from the territory of
Morocco or the United States, as the case may
be.
(2) EXCEPTION.—If the relationship between
the producer of a good and the seller of a material
influenced the price actually paid or payable for the
material, or if there is no price actually paid or pay-
able by the producer for the material, the value of
the material produced in the territory of Morocco or
the United States, or both, includes the following:
(A) All expenses incurred in the growth,
production, or manufacture of the material, in-
cluding general expenses.
(B) A reasonable amount for profit.
(C) Freight, insurance, packing, and all
other costs incurred in transporting the mate-
rial to the producer’s plant.
(e) PACKAGING AND PACKING MATERIALS AND CON-
TAINERS FOR RETAIL SALE AND FOR SHIPMENT.—Pack-
aging and packing materials and containers for retail sale
and shipment shall be disregarded in determining whether
a good qualifies as an originating good, except to the ex-
tent that the value of such packaging and packing mate-
rials and containers have been included in meeting the re-
quirements set forth in subsection (b)(2).
(f) INDIRECT MATERIALS.—Indirect materials shall
be disregarded in determining whether a good qualifies as
an originating good, except that the cost of such indirect
materials may be included in meeting the requirements set
forth in subsection (b)(2).
(g) TRANSIT AND TRANSSHIPMENT.—A good shall
not be considered to meet the requirement of subsection
(b)(1)(A) if, after exportation from the territory of Mo-
rocco or the United States, the good undergoes produc-
tion, manufacturing, or any other operation outside the
territory of Morocco or the United States, other than un-
loading, reloading, or any other operation necessary to
preserve the good in good condition or to transport the
good to the territory of the United States or Morocco.
(h) TEXTILE AND APPAREL GOODS.—
(1) DE MINIMIS AMOUNTS OF NONORIGINATING
MATERIALS.—
(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
component of the good that determines the tar-
iff classification of the good do not undergo an
applicable change in tariff classification set out
in Annex 4–A of the Agreement shall be consid-
ered to be an originating good if the total
weight of all such fibers or yarns in that com-
ponent is not more than 7 percent of the total
weight of that component.
(B) 
CERTAIN
TEXTILE
OR
APPAREL
GOODS.—A textile or apparel good containing
elastomeric yarns in the component of the good
that determines the tariff classification of the
good shall be considered to be an originating
good only if such yarns are wholly formed in
the territory of Morocco or the United States.
(C) YARN, FABRIC, OR
GROUP
OF
FI-
BERS.—For purposes of this paragraph, in the
case of a textile or apparel good that is a yarn,
fabric, or group of fibers, the term ‘‘component
of the good that determines the tariff classifica-