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(A) be treated as originating goods if the 
good is an originating good; and 
(B) be disregarded in determining whether 
all the nonoriginating materials used in the pro-
duction 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 acces-
sories, 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 ac-
cessories, spare parts, or tools is taken into ac-
count as originating or nonoriginating mate-
rials, as the case may be, in calculating the re-
gional value-content of the good. 
(h) FUNGIBLE GOODS AND MATERIALS.— 
(1) IN GENERAL.— 
(A) CLAIM
FOR
PREFERENTIAL
TREAT-
MENT.—A person claiming that a fungible good 
or fungible material is an originating good may
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base the claim either on the physical segrega-
tion of the fungible good or fungible material or 
by using an inventory management method with 
respect to the fungible good or fungible mate-
rial. 
(B) INVENTORY MANAGEMENT METHOD.— 
In this subsection, the term ‘‘inventory manage-
ment method’’ means— 
(i) averaging; 
(ii) ‘‘last-in, first-out’’; 
(iii) ‘‘first-in, first-out’’; or 
(iv) any other method— 
(I) recognized in the generally 
accepted accounting principles of the 
country in which the production is 
performed (whether Australia or the 
United States); or 
(II) otherwise accepted by that 
country. 
(2) ELECTION
OF
INVENTORY
METHOD.—A 
person selecting an inventory management method 
under paragraph (1) for a particular fungible good 
or fungible material shall continue to use that meth-
od for that fungible good or fungible material 
throughout the fiscal year of that person.
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(i) PACKAGING MATERIALS AND CONTAINERS FOR 
RETAIL SALE.—Packaging materials and containers in 
which a good is packaged for retail sale, if classified with 
the good, shall be disregarded in determining whether all 
the nonoriginating materials used in the production of the 
good undergo the applicable change in tariff classification 
set out in Annex 4–A or Annex 5–A of the Agreement, 
and, if the good is subject to a regional value-content re-
quirement, the value of such packaging materials and con-
tainers shall be taken into account as originating or non-
originating materials, as the case may be, in calculating 
the regional value-content of the good. 
(j) PACKING MATERIALS
AND CONTAINERS
FOR 
SHIPMENT.—Packing materials and containers for ship-
ment shall be disregarded in determining whether— 
(1) the nonoriginating materials used in the 
production of a good undergo the applicable change 
in tariff classification set out in Annex 4–A or 
Annex 5–A of the Agreement; and 
(2) the good satisfies a regional value-content 
requirement. 
(k) INDIRECT MATERIALS.—An indirect material 
shall be treated as an originating material without regard 
to where it is produced, and its value shall be the cost
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registered in the accounting records of the producer of the 
good. 
(l) THIRD COUNTRY OPERATIONS.—A good that has 
undergone production necessary to qualify as an origi-
nating good under subsection (b) shall not be considered 
to be an originating good if, subsequent to that produc-
tion, the good undergoes further production or any other 
operation outside the territory of Australia or the United 
States, other than unloading, reloading, or any other oper-
ation necessary to preserve the good in good condition or 
to transport the good to the territory of Australia or the 
United States. 
(m) TEXTILE AND APPAREL GOODS CLASSIFIABLE 
AS GOODS PUT UP IN SETS.—Notwithstanding the rules 
set forth in Annex 4–A of the Agreement, textile or ap-
parel goods classifiable as goods put up in sets for retail 
sale as provided for in General Rule of Interpretation 3 
of the HTS shall not be considered to be originating goods 
unless each of the goods in the set is an originating good 
or the total value of the nonoriginating goods in the set 
does not exceed 10 percent of the value of the set deter-
mined for purposes of assessing customs duties. 
(n) DEFINITIONS.—In this section: 
(1) ADJUSTED
VALUE.—The term ‘‘adjusted 
value’’ means the value determined under Articles 1