ing, 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; 
(II)(aa) each of the nonoriginating mate-
rials used in the production of the good under-
goes an applicable change in tariff classification 
specified in such Annex as a result of produc-
tion occurring entirely in the territory of Mo-
rocco or the United States, or both; or 
(bb) the good otherwise satisfies the re-
quirements 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 oper-
ations 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 ter-
ritory of the United States. 
(c) CUMULATION.— 
(1) ORIGINATING GOOD OR MATERIAL INCOR-
PORATED
INTO
GOODS
OF
OTHER
COUNTRY.—An 
originating good or a material produced in the terri-
tory 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 
territory of the other country. 
(2) MULTIPLE PROCEDURES.—A good that is 
grown, produced, 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 satis-
fies the requirements of subsection (b) and all other 
applicable requirements of this section. 
(d) VALUE OF MATERIALS.— 
(1) IN GENERAL.—Except as provided in para-
graph (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 ma-
terial to the producer’s plant, if such costs are 
not included in the price referred to in subpara-
graph (A). 
(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-