CONFORMING AMENDMENT.

SEC. 226. CONFORMING AMENDMENT. Section 503(b) of the Trade Act of 1974 (19 U.S.C. 2463(b)) is amended to read as follows: “(b) (1) The duty-free treatment provided under section 501 shall apply to any eligible article which is the growth, product, or manufacture of a beneficiary developing country if— “(A) that article is imported directly from a beneficiary developing country into the customs territory of the United States; and “(B) the sum of (i) the cost or value of the materials produced in the beneficiary developing country or any 2 or more countries which are members of the same association of countries which is treated as one country under section 502(a)(3), plus (ii) the direct costs of processing operations performed in such beneficiary developing country or such member countries is not less than 35 percent of the appraised value of such article at the time of its entry into the customs territory of the United States. “(2) The Secretary of the Treasury, after consulting with the United States Trade Representative, shall prescribe such regulations as may be necessary to carry out this subsection, including, but not limited to, regulations providing that, in order to be eligible for duty-free treatment under this title, an article must be wholly the growth, product, or manufacture of a beneficiary developing country, or must be a new or different article of commerce which has been grown, produced, or manufactured in the beneficiary developing country; but no article or material of a beneficiary developing country shall be eligible for such treatment by virtue of having merely undergone— 104 STAT. 661 “(A) simple combining or packaging operations, or “(B) mere dilution with water or mere dilution with another substance that does not materially alter the characteristics of the article.”.