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-
tion of the good’’ means all of the fibers in the 
yarn, fabric, or group of fibers. 
(2) GOODS
PUT
UP
IN
SETS
FOR
RETAIL 
SALE.—Notwithstanding the rules set forth in Annex 
4–A of the Agreement, textile or apparel goods clas-
sifiable as goods put up in sets for retail sale as pro-
vided 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 determined for purposes of assessing cus-
toms duties. 
(i) DEFINITIONS.—In this section: 
(1) DIRECT
COSTS
OF
PROCESSING
OPER-
ATIONS.— 
(A) IN GENERAL.—The term ‘‘direct costs 
of processing operations’’, with respect to a 
good, includes, to the extent they are includable 
in the appraised value of the good when im-
ported into Morocco or the United States, as 
the case may be, the following: 
(i) All actual labor costs involved in 
the growth, production, or manufacture of 
the good, including fringe benefits, on-the- 
job training, and the costs of engineering, 
supervisory, quality control, and similar 
personnel. 
(ii) Tools, dies, molds, and other indi-
rect materials, and depreciation on ma-
chinery and equipment that are allocable 
to the good. 
(iii) Research, development, design, 
engineering, and blueprint costs, to the ex-
tent that they are allocable to the good. 
(iv) Costs of inspecting and testing 
the good. 
(v) Costs of packaging the good for 
export to the territory of the other country. 
(B) EXCEPTIONS.—The term ‘‘direct costs 
of processing operations’’ does not include costs 
that are not directly attributable to a good or 
are not costs of growth, production, or manu-
facture of the good, such as— 
(i) profit; and 
(ii) general expenses of doing business 
that are either not allocable to the good or 
are not related to the growth, production, 
or manufacture of the good, such as ad-
ministrative salaries, casualty and liability 
insurance, advertising, and sales staff sala-
ries, commissions, or expenses. 
(2) GOOD.—The term ‘‘good’’ means any mer-
chandise, product, article, or material.
(3) GOOD WHOLLY THE GROWTH, PRODUCT, OR 
MANUFACTURE OF MOROCCO, THE UNITED STATES, 
OR
BOTH.—The term ‘‘good wholly the growth, 
product, or manufacture of Morocco, the United 
States, or both’’ means— 
(A) a mineral good extracted in the terri-
tory of Morocco or the United States, or both; 
(B) a vegetable good, as such a good is 
provided for in the HTS, harvested in the terri-
tory of Morocco or the United States, or both; 
(C) a live animal born and raised in the 
territory of Morocco or the United States, or 
both; 
(D) a good obtained from live animals 
raised in the territory of Morocco or the United 
States, or both; 
(E) a good obtained from hunting, trap-
ping, or fishing in the territory of Morocco or 
the United States, or both; 
(F) a good (fish, shellfish, and other ma-
rine life) taken from the sea by vessels reg-
istered or recorded with Morocco or the United 
States and flying the flag of that country; 
(G) a good produced from goods referred 
to in subparagraph (F) on board factory ships