Document ID: chunk:federal_register_of_legislation:C2005C00021:clause:1_153yh:p1
Version: federal_register_of_legislation:C2005C00021
Segment Type: clause
Provision Reference: sch 1 cl 153YH (pt 1/2)
Character Range: 26931–29595

153YH  Goods that are clothing or textiles produced entirely in the US or in the US and Australia from non‑originating materials

 (1) Subject to subsection (5), goods are US originating goods if:
 (a) a tariff classification (the final classification) that is specified in column 2 of the Schedule 2 tariff table applies to the goods; and
 (b) they are produced entirely in the US, or entirely in the US and Australia, from non‑originating materials only or from non‑originating materials and originating materials; and
 (c) if any of the following 2 requirements apply in relation to the goods—that requirement is satisfied.

Note: Subsection (5) sets out a qualification for goods put up in a set for retail sale.

First requirement

 (2) The first requirement applies only if a change in tariff classification is specified in column 3 of the Schedule 2 tariff table opposite the final classification for the goods. The first requirement is that:
 (a) subject to subsection (3), each of the non‑originating materials satisfies the transformation test (see subsection (7)); or
 (b) the following are satisfied:
 (i) the total weight of all the non‑originating materials does not exceed 7% of the total weight of the goods;
 (ii) if one or more of the non‑originating materials are prescribed for the purposes of this paragraph—each of those non‑originating materials satisfies the transformation test (see subsection (7)).

Note: Paragraph (2)(b) relates to paragraphs 6 and 7 (De Minimis) of Article 4.2 of the Agreement.

 (3) In relation to goods classified to Chapter 61, 62 or 63 of the Harmonized System, paragraph (2)(a) is to be applied by applying:
 (a) for goods covered by Chapter 61 of the Harmonized System—Chapter Rule 2 for Chapter 61 that is set out in the Schedule 2 tariff table; and
 (b) for goods covered by Chapter 62 of the Harmonized System—Chapter Rule 3 for Chapter 62 that is set out in the Schedule 2 tariff table; and
 (c) for goods covered by Chapter 63 of the Harmonized System—Chapter Rule 1 for Chapter 63 that is set out in the Schedule 2 tariff table.

Second requirement

 (4) The second requirement is that the goods satisfy any other requirement that is specified in, or referred to in, column 3 of the Schedule 2 tariff table opposite the final classification for the goods.

Goods put up in a set for retail sale

 (5) However, if:
 (a) the goods are put up in a set for retail sale; and
 (b) the goods are classified in accordance with Rule 3 of the Interpretation Rules;
the goods are US originating goods only if:
 (c) all of the goods in the set are US originating goods under this Division; or
 (d) the total value