H. R. 4842—7
More than 10 percent but not more
than 40 percent of the trigger price
30 percent of the excess of the
applicable NTR (MFN) rate of
duty over the schedule rate of
duty.
More than 40 percent but not more
than 60 percent of the trigger price
50 percent of such excess.
More than 60 percent but not more
than 75 percent of the trigger price
70 percent of such excess.
More than 75 percent of the trigger
price ..................................................
100 percent of such excess.
(3) EXCEPTIONS.—No additional duty shall be assessed on
a good under this subsection if, at the time of entry, the
good is subject to import relief under—
(A) subtitle A of title III of this Act; or
(B) chapter 1 of title II of the Trade Act of 1974
(19 U.S.C. 2251 et seq.).
(4) TERMINATION.—The assessment of an additional duty
on a good under this subsection shall cease to apply to that
good on the date on which duty-free treatment must be provided
to that good under the Tariff Schedule of the United States
to Annex IV of the Agreement.
(5) TARIFF-RATE QUOTAS.—If an agricultural safeguard good
is subject to a tariff-rate quota under the Agreement, any
additional duty assessed under this subsection shall be applied
only to over-quota imports of the good.
(6) NOTICE.—Not later than 60 days after the date on
which the Secretary of the Treasury assesses an additional
duty on a good under this subsection, the Secretary shall notify
the Government of Morocco in writing of such action and shall
provide to the Government of Morocco data supporting the
assessment of additional duties.
SEC. 203. RULES OF ORIGIN.
(a) APPLICATION AND INTERPRETATION.—In this section:
(1) TARIFF CLASSIFICATION.—The basis for any tariff classi-
fication is the HTS.
(2) REFERENCE TO HTS.—Whenever in this section there
is a reference to a heading or sub-heading, such reference
shall be a reference to a heading or subheading of the HTS.
(b) ORIGINATING GOODS.—
(1) IN GENERAL.—For purposes of this Act and for purposes
of implementing the preferential tariff treatment provided for
under the Agreement, a good is an originating good if—
(A) the good is imported directly—
(i) from the territory of Morocco into the territory
of the United States; or
(ii) from the territory of the United States into
the territory of Morocco; and
(B)(i) the good is a good wholly the growth, product,
or manufacture of Morocco or the United States, or both;
(ii) the good (other than a good to which clause (iii)
applies) is a new or different article of commerce that
has been grown, produced, or manufactured in Morocco,
the United States, or both, and meets the requirements
of paragraph (2); or
(iii)(I) the good is a good covered by Annex 4–A or
5–A of the Agreement;
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(II)(aa) each of the nonoriginating materials used in
the production of the good undergoes an applicable change
in tariff classification specified in such Annex as a result
of production occurring entirely in the territory of Morocco
or the United States, or both; or
(bb) the good otherwise satisfies the requirements
specified in such Annex; and
(III) the good satisfies all other applicable requirements
of this section.
(2) REQUIREMENTS.—A good described in paragraph
(1)(B)(ii) is an originating good only if the sum of—
(A) the value of each material produced in the territory
of Morocco or the United States, or both, and
(B) the direct costs of processing operations performed
in the territory of Morocco or the United States, or both,
is not less than 35 percent of the appraised value of the good
at the time the good is entered into the territory of the United
States.
(c) CUMULATION.—
(1) ORIGINATING GOOD OR MATERIAL INCORPORATED INTO
GOODS OF OTHER COUNTRY.—An originating good or a material
produced in the territory of Morocco or the United States,
or both, that is incorporated into a good in the territory of
the other country shall be considered to originate in the terri-
tory of the other country.
(2) MULTIPLE PROCEDURES.—A good that is grown, pro-
duced, or manufactured in the territory of Morocco or the
United States, or both, by 1 or more producers, is an originating
good if the good satisfies the requirements of subsection (b)
and all other applicable requirements of this section.
(d) VALUE OF MATERIALS.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
value of a material produced in the territory of Morocco or
the United States, or both, includes the following:
(A) The price actually paid or payable for the material
by the producer of such good.
(B) The freight, insurance, packing, and all other costs
incurred in transporting the material to the producer’s
plant, if such costs are not included in the price referred
to in subparagraph (A).
(C) The cost of waste or spoilage resulting from the
use of the material in the growth, production, or manufac-
ture 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 remitted 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 payable 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, including general expenses.
(B) A reasonable amount for profit.