One Hundred Ninth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the fourth day of January, two thousand and five
An Act
To implement the Dominican Republic-Central America-United States
Free Trade Agreement.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Dominican Republic-Central
America-United States Free Trade Agreement Implementation Act'.
(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and
initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.
TITLE II--CUSTOMS PROVISIONS
Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Retroactive application for certain liquidations and reliquidations
of textile or apparel goods.
Sec. 206. Disclosure of incorrect information; false certifications of
origin; denial of preferential tariff treatment.
Sec. 207. Reliquidation of entries.
Sec. 208. Recordkeeping requirements.
Sec. 209. Enforcement relating to trade in textile or apparel goods.
TITLE III--RELIEF FROM IMPORTS
Subtitle A--Relief From Imports Benefiting From the Agreement
Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.
Subtitle B--Textile and Apparel Safeguard Measures
Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.
Subtitle C--Cases Under Title II of the Trade Act of 1974
Sec. 331. Findings and action on goods of CAFTA-DR countries.
TITLE IV--MISCELLANEOUS
Sec. 401. Eligible products.
Sec. 402. Modifications to the Caribbean Basin Economic Recovery Act.
Sec. 403. Periodic reports and meetings on labor obligations and labor
capacity-building provisions.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to approve and implement the Free Trade Agreement between the United
States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras,
and Nicaragua entered into under the authority of section 2103(b) of the
Bipartisan Trade Promotion Authority Act of 2002 (19 U.S.C. 3803(b));
(2) to strengthen and develop economic relations between the United States,
Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras,
and Nicaragua for their mutual benefit;
(3) to establish free trade between the United States, Costa Rica, the
Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua through
the reduction and elimination of barriers to trade in goods and services
and to investment; and
(4) to lay the foundation for further cooperation to expand and enhance
the benefits of the Agreement.
SEC. 3. DEFINITIONS.
(1) AGREEMENT- The term `Agreement' means the Dominican Republic-Central
America-United States Free Trade Agreement approved by the Congress under
section 101(a)(1).
(2) CAFTA-DR COUNTRY- Except as provided in section 203, the term `CAFTA-DR
country' means--
(A) Costa Rica, for such time as the Agreement is in force between the
United States and Costa Rica;
(B) the Dominican Republic, for such time as the Agreement is in force
between the United States and the Dominican Republic;
(C) El Salvador, for such time as the Agreement is in force between
the United States and El Salvador;
(D) Guatemala, for such time as the Agreement is in force between the
United States and Guatemala;
(E) Honduras, for such time as the Agreement is in force between the
United States and Honduras; and
(F) Nicaragua, for such time as the Agreement is in force between the
United States and Nicaragua.
(3) COMMISSION- The term `Commission' means the United States International
Trade Commission.
(4) HTS- The term `HTS' means the Harmonized Tariff Schedule of the United
States.
(5) TEXTILE OR APPAREL GOOD- The term `textile or apparel good' means
a good listed in the Annex to the Agreement on Textiles and Clothing referred
to in section 101(d)(4) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(4)), other than a good listed in Annex 3.29 of the Agreement.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRATIVE ACTION- Pursuant
to section 2105 of the Bipartisan Trade Promotion Authority Act of 2002
(19 U.S.C. 3805) and section 151 of the Trade Act of 1974 (19 U.S.C. 2191),
the Congress approves--
(1) the Dominican Republic-Central America-United States Free Trade Agreement
entered into on August 5, 2004, with the Governments of Costa Rica, the
Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua, and
submitted to the Congress on June 23, 2005; and
(2) the statement of administrative action proposed to implement the Agreement
that was submitted to the Congress on June 23, 2005.
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT- At such time as the
President determines that countries listed in subsection (a)(1) have taken
measures necessary to comply with the provisions of the Agreement that are
to take effect on the date on which the Agreement enters into force, the
President is authorized to provide for the Agreement to enter into force
with respect to those countries that provide for the Agreement to enter
into force for them.
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.
(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW-
(1) UNITED STATES LAW TO PREVAIL IN CONFLICT- No provision of the Agreement,
nor the application of any such provision to any person or circumstance,
which is inconsistent with any law of the United States shall have effect.
(2) CONSTRUCTION- Nothing in this Act shall be construed--
(A) to amend or modify any law of the United States, or
(B) to limit any authority conferred under any law of the United States,
unless specifically provided for in this Act.
(b) RELATIONSHIP OF AGREEMENT TO STATE LAW-
(1) LEGAL CHALLENGE- No State law, or the application thereof, may be
declared invalid as to any person or circumstance on the ground that the
provision or application is inconsistent with the Agreement, except in
an action brought by the United States for the purpose of declaring such
law or application invalid.
(2) DEFINITION OF STATE LAW- For purposes of this subsection, the term
`State law' includes--
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business of insurance.
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES- No person other
than the United States--
(1) shall have any cause of action or defense under the Agreement or by
virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any provision of law, any
action or inaction by any department, agency, or other instrumentality
of the United States, any State, or any political subdivision of a State,
on the ground that such action or inaction is inconsistent with the Agreement.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND
INITIAL REGULATIONS.
(a) IMPLEMENTING ACTIONS-
(1) PROCLAMATION AUTHORITY- After the date of the enactment of this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States Government may issue
such regulations,
as may be necessary to ensure that any provision of this Act, or amendment
made by this Act, that takes effect on the date the Agreement enters into
force is appropriately implemented on such date, but no such proclamation
or regulation may have an effective date earlier than the date the Agreement
enters into force.
(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS- Any action proclaimed
by the President under the authority of this Act that is not subject to
the consultation and layover provisions under section 104 may not take
effect before the 15th day after the date on which the text of the proclamation
is published in the Federal Register.
(3) WAIVER OF 15-DAY RESTRICTION- The 15-day restriction contained in
paragraph (2) on the taking effect of proclaimed actions is waived to
the extent that the application of such restriction would prevent the
taking effect on the date the Agreement enters into force of any action
proclaimed under this section.
(b) INITIAL REGULATIONS- Initial regulations necessary or appropriate to
carry out the actions required by or authorized under this Act or proposed
in the statement of administrative action submitted under section 101(a)(2)
to implement the Agreement shall, to the maximum extent feasible, be issued
within 1 year after the date on which the Agreement enters into force. In
the case of any implementing action that takes effect on a date after the
date on which the Agreement enters into force, initial regulations to carry
out that action shall, to the maximum extent feasible, be issued within
1 year after such effective date.
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE
OF, PROCLAIMED ACTIONS.
If a provision of this Act provides that the implementation of an action
by the President by proclamation is subject to the consultation and layover
requirements of this section, such action may be proclaimed only if--
(1) the President has obtained advice regarding the proposed action from--
(A) the appropriate advisory committees established under section 135
of the Trade Act of 1974 (19 U.S.C. 2155); and
(2) the President has submitted to the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of Representatives a
report that sets forth--
(A) the action proposed to be proclaimed and the reasons therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first day on which
the requirements set forth in paragraphs (1) and (2) have been met has
expired; and
(4) the President has consulted with such Committees regarding the proposed
action during the period referred to in paragraph (3).
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
(a) ESTABLISHMENT OR DESIGNATION OF OFFICE- The President is authorized
to establish or designate within the Department of Commerce an office that
shall be responsible for providing administrative assistance to panels established
under chapter 20 of the Agreement. The office may not be considered to be
an agency for purposes of section 552 of title 5, United States Code.
(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
for each fiscal year after fiscal year 2005 to the Department of Commerce
such sums as may be necessary for the establishment and operations of the
office established or designated under subsection (a) and for the payment
of the United States share of the expenses of panels established under chapter
20 of the Agreement.
SEC. 106. ARBITRATION OF CLAIMS.
The United States is authorized to resolve any claim against the United
States covered by article 10.16.1(a)(i)(C) or article 10.16.1(b)(i)(C) of
the Agreement, pursuant to the Investor-State Dispute Settlement procedures
set forth in section B of chapter 10 of the Agreement.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
(a) EFFECTIVE DATES- Except as provided in subsection (b), the provisions
of this Act and the amendments made by this Act take effect on the date
the Agreement enters into force.
(b) EXCEPTIONS- Sections 1 through 3 and this title take effect on the date
of the enactment of this Act.
(c) TERMINATION OF CAFTA-DR STATUS- During any period in which a country
ceases to be a CAFTA-DR country, the provisions of this Act (other than
this subsection) and the amendments made by this Act shall cease to have
effect with respect to that country.
(d) TERMINATION OF THE AGREEMENT- On the date on which the Agreement ceases
to be in force with respect to the United States, the provisions of this
Act (other than this subsection) and the amendments made by this Act shall
cease to have effect.
TITLE II--CUSTOMS PROVISIONS
SEC. 201. TARIFF MODIFICATIONS.
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT-
(1) PROCLAMATION AUTHORITY- The President may proclaim--
(A) such modifications or continuation of any duty,
(B) such continuation of duty-free or excise treatment, or
(C) such additional duties,
as the President determines to be necessary or appropriate to carry out
or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, and 3.28, and Annexes
3.3, 3.27, and 3.28 of the Agreement.
(2) EFFECT ON GSP STATUS- Notwithstanding section 502(a)(1) of the Trade
Act of 1974 (19 U.S.C. 2462(a)(1)), the President shall terminate the
designation of each CAFTA-DR country as a beneficiary developing country
for purposes of title V of the Trade Act of 1974 on the date the Agreement
enters into force with respect to that country.
(3) EFFECT ON CBERA STATUS-
(A) IN GENERAL- Notwithstanding section 212(a) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(a)), the President shall terminate
the designation of each CAFTA-DR country as a beneficiary country for
purposes of that Act on the date the Agreement enters into force with
respect to that country.
(B) EXCEPTION- Notwithstanding subparagraph (A), each such country shall
be considered a beneficiary country under section 212(a) of the Caribbean
Basin Economic Recovery Act, for purposes of--
(i) sections 771(7)(G)(ii)(III) and 771(7)(H) of the Tariff Act of
1930 (19 U.S.C. 1677(7)(G)(ii)(III) and 1677(7)(H));
(ii) the duty-free treatment provided under paragraph 12 of Appendix
I of the General Notes to the Schedule of the United States to Annex
3.3 of the Agreement; and
(iii) section 274(h)(6)(B) of the Internal Revenue Code of 1986.
(b) OTHER TARIFF MODIFICATIONS- Subject to the consultation and layover
provisions of section 104, the President may proclaim--
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree to with a CAFTA-DR
country regarding the staging of any duty treatment set forth in Annex
3.3 of the Agreement,
(3) such continuation of duty-free or excise treatment, or
(4) such additional duties,
as the President determines to be necessary or appropriate to maintain the
general level of reciprocal and mutually advantageous concessions provided
for by the Agreement.
(c) CONVERSION TO AD VALOREM RATES- For purposes of subsections (a) and
(b), with respect to any good for which the base rate in the Schedule of
the United States to Annex 3.3 of the Agreement is a specific or compound
rate of duty, the President may substitute for the base rate an ad valorem
rate that the President determines to be equivalent to the base rate.
SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.
(1) APPLICABILITY OF SUBSECTION- This subsection applies to additional
duties assessed under subsection (b).
(2) APPLICABLE NTR (MFN) RATE OF DUTY- For purposes of subsection (b),
the term `applicable NTR (MFN) rate of duty' means, with respect to a
safeguard good, a rate of duty that is the lesser of--
(A) the column 1 general rate of duty that would, at the time the additional
duty is imposed under subsection (b), apply to a good classifiable in
the same 8-digit subheading of the HTS as the safeguard good; or
(B) the column 1 general rate of duty that would, on the day before
the date on which the Agreement enters into force, apply to a good classifiable
in the same 8-digit subheading of the HTS as the safeguard good.
(3) SCHEDULE RATE OF DUTY- For purposes of subsection (b), the term `schedule
rate of duty' means, with respect to a safeguard good, the rate of duty
for that good that is set out in the Schedule of the United States to
Annex 3.3 of the Agreement.
(4) SAFEGUARD GOOD- In this section, the term `safeguard good' means a
good--
(A) that is included in the Schedule of the United States to Annex 3.15
of the Agreement;
(B) that qualifies as an originating good under section 203, except
that operations performed in or material obtained from the United States
shall be considered as if the operations were performed in, and the
material was obtained from, a country that is not a party to the Agreement;
and
(C) for which a claim for preferential tariff treatment under the Agreement
has been made.
(5) EXCEPTIONS- No additional duty shall be assessed on a good under subsection
(b) if, at the time of entry, the good is subject to import relief under--
(A) subtitle A of title III of this Act; or
(B) chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et
seq.).
(6) TERMINATION- The assessment of an additional duty on a good under
subsection (b) shall cease to apply to that good on the date on which
duty-free treatment must be provided to that good under the Schedule of
the United States to Annex 3.3 of the Agreement.
(7) NOTICE- Not later than 60 days after the Secretary of the Treasury
first assesses an additional duty in a calendar year on a good under subsection
(b), the Secretary shall notify the country whose good is subject to the
additional duty in writing of such action and shall provide to that country
data supporting the assessment of the additional duty.
(b) ADDITIONAL DUTIES ON SAFEGUARD GOODS-
(1) IN GENERAL- In addition to any duty proclaimed under subsection (a)
or (b) of section 201, and subject to subsection (a), the Secretary of
the Treasury shall assess a duty, in the amount determined under paragraph
(2), on a safeguard good of a CAFTA-DR country imported into the United
States in a calendar year if the Secretary determines that, prior to such
importation, the total volume of that safeguard good of such country that
is imported into the United States in that calendar year exceeds 130 percent
of the volume that is set out for that safeguard good in the corresponding
year in the table for that country contained in Appendix I of the General
Notes to the Schedule of the United States to Annex 3.3 of the Agreement.
For purposes of this subsection, year 1 in that table corresponds to the
calendar year in which the Agreement enters into force.
(2) CALCULATION OF ADDITIONAL DUTY- The additional duty on a safeguard
good under this subsection shall be--
(A) in the case of a good classified under subheading 1202.10.80, 1202.20.80,
2008.11.15, 2008.11.35, or 2008.11.60 of the HTS--
(i) in years 1 through 5, an amount equal to 100 percent of the excess
of the applicable NTR (MFN) rate of duty over the schedule rate of
duty;
(ii) in years 6 through 10, an amount equal to 75 percent of the excess
of the applicable NTR (MFN) rate of duty over the schedule rate of
duty; and
(iii) in years 11 through 14, an amount equal to 50 percent of the
excess of the applicable NTR (MFN) rate of duty over the schedule
rate of duty; and
(B) in the case of any other safeguard good--
(i) in years 1 through 14, an amount equal to 100 percent of the excess
of the applicable NTR (MFN) rate of duty over the schedule rate of
duty;
(ii) in years 15 through 17, an amount equal to 75 percent of the
excess of the applicable NTR (MFN) rate of duty over the schedule
rate of duty; and
(iii) in years 18 and 19, an amount equal to 50 percent of the excess
of the applicable NTR (MFN) rate of duty over the schedule rate of
duty.
SEC. 203. RULES OF ORIGIN.
(a) APPLICATION AND INTERPRETATION- In this section:
(1) TARIFF CLASSIFICATION- The basis for any tariff classification is
the HTS.
(2) REFERENCE TO HTS- Whenever in this section there is a reference to
a chapter, heading, or subheading, such reference shall be a reference
to a chapter, heading, or subheading of the HTS.
(3) COST OR VALUE- Any cost or value referred to in this section shall
be recorded and maintained in accordance with the generally accepted accounting
principles applicable in the territory of the country in which the good
is produced (whether the United States or another CAFTA-DR country).
(b) ORIGINATING GOODS- For purposes of this Act and for purposes of implementing
the preferential tariff treatment provided for under the Agreement, except
as otherwise provided in this section, a good is an originating good if--
(1) the good is a good wholly obtained or produced entirely in the territory
of one or more of the CAFTA-DR countries;
(A) is produced entirely in the territory of one or more of the CAFTA-DR
countries, and--
(i) each of the nonoriginating materials used in the production of
the good undergoes an applicable change in tariff classification specified
in Annex 4.1 of the Agreement; or
(ii) the good otherwise satisfies any applicable regional value-content
or other requirements specified in Annex 4.1 of the Agreement; and
(B) satisfies all other applicable requirements of this section; or
(3) the good is produced entirely in the territory of one or more of the
CAFTA-DR countries, exclusively from materials described in paragraph
(1) or (2).
(c) REGIONAL VALUE-CONTENT-
(1) IN GENERAL- For purposes of subsection (b)(2), the regional value-content
of a good referred to in Annex 4.1 of the Agreement, except for goods
to which paragraph (4) applies, shall be calculated by the importer, exporter,
or producer of the good, on the basis of the build-down method described
in paragraph (2) or the build-up method described in paragraph (3).
(A) IN GENERAL- The regional value-content of a good may be calculated
on the basis of the following build-down method:
av-vnm
rvc = -------- .0A 100
av
(B) DEFINITIONS- In subparagraph (A):
(i) RVC- The term `RVC' means the regional value-content of the good,
expressed as a percentage.
(ii) AV- The term `AV' means the adjusted value of the good.
(iii) VNM- The term `VNM' means the value of nonoriginating materials
that are acquired and used by the producer in the production of the
good, but does not include the value of a material that is self-produced.
(A) IN GENERAL- The regional value-content of a good may be calculated
on the basis of the following build-up method:
vom
rvc = -------- .0A 100
av
(B) DEFINITIONS- In subparagraph (A):
(i) RVC- The term `RVC' means the regional value-content of the good,
expressed as a percentage.
(ii) AV- The term `AV' means the adjusted value of the good.
(iii) VOM- The term `VOM' means the value of originating materials
that are acquired or self-produced, and used by the producer in the
production of the good.
(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE GOODS-
(A) IN GENERAL- For purposes of subsection (b)(2), the regional value-content
of an automotive good referred to in Annex 4.1 of the Agreement may
be calculated by the importer, exporter, or producer of the good, on
the basis of the following net cost method:
nc-vnm
rvc = -------- .0A 100
nc
(B) DEFINITIONS- In subparagraph (A):
(i) AUTOMOTIVE GOOD- The term `automotive good' means a good provided
for in any of subheadings 8407.31 through 8407.34, subheading 8408.20,
heading 8409, or in any of headings 8701 through 8708.
(ii) RVC- The term `RVC' means the regional value-content of the automotive
good, expressed as a percentage.
(iii) NC- The term `NC' means the net cost of the automotive good.
(iv) VNM- The term `VNM' means the value of nonoriginating materials
that are acquired and used by the producer in the production of the
automotive good, but does not include the value of a material that
is self-produced.
(i) BASIS OF CALCULATION- For purposes of determining the regional
value-content under subparagraph (A) for an automotive good that is
a motor vehicle provided for in any of headings 8701 through 8705,
an importer, exporter, or producer may average the amounts calculated
under the formula contained in subparagraph (A), over the producer's
fiscal year--
(I) with respect to all motor vehicles in any 1 of the categories
described in clause (ii); or
(II) with respect to all motor vehicles in any such category that
are exported to the territory of one or more of the CAFTA-DR countries.
(ii) CATEGORIES- A category is described in this clause if it--
(I) is the same model line of motor vehicles, is in the same class
of vehicles, and is produced in the same plant in the territory
of a CAFTA-DR country, as the good described in clause (i) for which
regional value-content is being calculated;
(II) is the same class of motor vehicles, and is produced in the
same plant in the territory of a CAFTA-DR country, as the good described
in clause (i) for which regional value-content is being calculated;
or
(III) is the same model line of motor vehicles produced in the territory
of a CAFTA-DR country as the good described in clause (i) for which
regional value-content is being calculated.
(D) OTHER AUTOMOTIVE GOODS- For purposes of determining the regional
value-content under subparagraph (A) for automotive goods provided for
in any of subheadings 8407.31 through 8407.34, in subheading 8408.20,
or in heading 8409, 8706, 8707, or 8708, that are produced in the same
plant, an importer, exporter, or producer may--
(i) average the amounts calculated under the formula contained in
subparagraph (A) over--
(I) the fiscal year of the motor vehicle producer to whom the automotive
goods are sold,
(II) any quarter or month, or
(III) its own fiscal year,
if the goods were produced during the fiscal year, quarter, or month
that is the basis for the calculation;
(ii) determine the average referred to in clause (i) separately for
such goods sold to 1 or more motor vehicle producers; or
(iii) make a separate determination under clause (i) or (ii) for automotive
goods that are exported to the territory of one or more of the CAFTA-DR
countries.
(E) CALCULATING NET COST- The importer, exporter, or producer shall,
consistent with the provisions regarding allocation of costs set out
in generally accepted accounting principles, determine the net cost
of an automotive good under subparagraph (B) by--
(i) calculating the total cost incurred with respect to all goods
produced by the producer of the automotive good, subtracting any sales
promotion, marketing and after-sales service costs, royalties, shipping
and packing costs, and nonallowable interest costs that are included
in the total cost of all such goods, and then reasonably allocating
the resulting net cost of those goods to the automotive good;
(ii) calculating the total cost incurred with respect to all goods
produced by that producer, reasonably allocating the total cost to
the automotive good, and then subtracting any sales promotion, marketing
and after-sales service costs, royalties, shipping and packing costs,
and nonallowable interest costs that are included in the portion of
the total cost allocated to the automotive good; or
(iii) reasonably allocating each cost that forms part of the total
cost incurred with respect to the automotive good so that the aggregate
of all such costs does not include any sales promotion, marketing
and after-sales service costs, royalties, shipping and packing costs,
or nonallowable interest costs.
(1) IN GENERAL- For the purpose of calculating the regional value-content
of a good under subsection (c), and for purposes of applying the de minimis
rules under subsection (f), the value of a material is--
(A) in the case of a material that is imported by the producer of the
good, the adjusted value of the material;
(B) in the case of a material acquired in the territory in which the
good is produced, the value, determined in accordance with Articles
1 through 8, Article 15, and the corresponding interpretive notes of
the Agreement on Implementation of Article VII of the General Agreement
on Tariffs and Trade 1994 referred to in section 101(d)(8) of the Uruguay
Round Agreements Act, as set forth in regulations promulgated by the
Secretary of the Treasury providing for the application of such Articles
in the absence of an importation; or
(C) in the case of a material that is self-produced, the sum of--
(i) all expenses incurred in the production of the material, including
general expenses; and
(ii) an amount for profit equivalent to the profit added in the normal
course of trade.
(2) FURTHER ADJUSTMENTS TO THE VALUE OF MATERIALS-
(A) ORIGINATING MATERIAL- The following expenses, if not included in
the value of an originating material calculated under paragraph (1),
may be added to the value of the originating material:
(i) The costs of freight, insurance, packing, and all other costs
incurred in transporting the material within or between the territory
of one or more of the CAFTA-DR countries to the location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the material paid
in the territory of one or more of the CAFTA-DR countries, other than
duties or taxes that are waived, refunded, refundable, or otherwise
recoverable, including credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from the use of the
material in the production of the good, less the value of renewable
scrap or byproducts.
(B) NONORIGINATING MATERIAL- The following expenses, if included in
the value of a nonoriginating material calculated under paragraph (1),
may be deducted from the value of the nonoriginating material:
(i) The costs of freight, insurance, packing, and all other costs
incurred in transporting the material within or between the territory
of one or more of the CAFTA-DR countries to the location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the material paid
in the territory of one or more of the CAFTA-DR countries, other than
duties or taxes that are waived, refunded, refundable, or otherwise
recoverable, including credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from the use of the
material in the production of the good, less the value of renewable
scrap or byproducts.
(iv) The cost of originating materials used in the production of the
nonoriginating material in the territory of one or more of the CAFTA-DR
countries.
(1) ORIGINATING MATERIALS USED IN PRODUCTION OF GOODS OF ANOTHER COUNTRY-
Originating materials from the territory of one or more of the CAFTA-DR
countries that are used in the production of a good in the territory of
another CAFTA-DR country shall be considered to originate in the territory
of that other country.
(2) MULTIPLE PROCEDURES- A good that is produced in the territory of one
or more of the CAFTA-DR countries by 1 or more producers is an originating
good if the good satisfies the requirements of subsection (b) and all
other applicable requirements of this section.
(f) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS-
(1) IN GENERAL- Except as provided in paragraphs (2) and (3), a good that
does not undergo a change in tariff classification pursuant to Annex 4.1
of the Agreement is an originating good if--
(A) the value of all nonoriginating materials that--
(i) are used in the production of the good, and
(ii) do not undergo the applicable change in tariff classification
(set out in Annex 4.1 of the Agreement),
does not exceed 10 percent of the adjusted value of the good;
(B) the good meets all other applicable requirements of this section;
and
(C) the value of such nonoriginating materials is included in the value
of nonoriginating materials for any applicable regional value-content
requirement for the good.
(2) EXCEPTIONS- Paragraph (1) does not apply to the following:
(A) A nonoriginating material provided for in chapter 4, or a nonoriginating
dairy preparation containing over 10 percent by weight of milk solids
provided for in subheading 1901.90 or 2106.90, that is used in the production
of a good provided for in chapter 4.
(B) A nonoriginating material provided for in chapter 4, or a nonoriginating
dairy preparation containing over 10 percent by weight of milk solids
provided for in subheading 1901.90, that is used in the production of
the following goods:
(i) Infant preparations containing over 10 percent by weight of milk
solids provided for in subheading 1901.10.
(ii) Mixes and doughs, containing over 25 percent by weight of butterfat,
not put up for retail sale, provided for in subheading 1901.20.
(iii) Dairy preparations containing over 10 percent by weight of milk
solids provided for in subheading 1901.90 or 2106.90.
(iv) Goods provided for in heading 2105.
(v) Beverages containing milk provided for in subheading 2202.90.
(vi) Animal feeds containing over 10 percent by weight of milk solids
provided for in subheading 2309.90.
(C) A nonoriginating material provided for in heading 0805, or any of
subheadings 2009.11 through 2009.39, that is used in the production
of a good provided for in any of subheadings 2009.11 through 2009.39,
or in fruit or vegetable juice of any single fruit or vegetable, fortified
with minerals or vitamins, concentrated or unconcentrated, provided
for in subheading 2106.90 or 2202.90.
(D) A nonoriginating material provided for in heading 0901 or 2101 that
is used in the production of a good provided for in heading 0901 or
2101.
(E) A nonoriginating material provided for in heading 1006 that is used
in the production of a good provided for in heading 1102 or 1103 or
subheading 1904.90.
(F) A nonoriginating material provided for in chapter 15 that is used
in the production of a good provided for in chapter 15.
(G) A nonoriginating material provided for in heading 1701 that is used
in the production of a good provided for in any of headings 1701 through
1703.
(H) A nonoriginating material provided for in chapter 17 that is used
in the production of a good provided for in subheading 1806.10.
(I) Except as provided in subparagraphs (A) through (H) and Annex 4.1
of the Agreement, a nonoriginating material used in the production of
a good provided for in any of chapters 1 through 24, unless the nonoriginating
material is provided for in a different subheading than the good for
which origin is being determined under this section.
(3) TEXTILE OR APPAREL GOODS-
(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 tariff classification of the good do not undergo an applicable change
in tariff classification, set out in Annex 4.1 of the Agreement, shall
be considered to be an originating good if--
(i) the total weight of all such fibers or yarns in that component
is not more than 10 percent of the total weight of that component;
or
(ii) the yarns are those described in section 204(b)(3)(B)(vi)(IV)
of the Andean Trade Preference Act (19 U.S.C. 3203(b)(3)(B)(vi)(IV))(as
in effect on the date of the enactment of this Act).
(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 a CAFTA-DR
country.
(C) YARN, FABRIC, OR FIBER- For purposes of this paragraph, in the case
of a good that is a yarn, fabric, or fiber, the term `component of the
good that determines the tariff classification of the good' means all
of the fibers in the good.
(g) FUNGIBLE GOODS AND MATERIALS-
(A) CLAIM FOR PREFERENTIAL TARIFF TREATMENT- A person claiming that
a fungible good or fungible material is an originating good may base
the claim either on the physical segregation of the fungible good or
fungible material or by using an inventory management method with respect
to the fungible good or fungible material.
(B) INVENTORY MANAGEMENT METHOD- In this subsection, the term `inventory
management method' means--
(ii) `last-in, first-out';
(iii) `first-in, first-out'; or
(I) recognized in the generally accepted accounting principles of
the CAFTA-DR country in which the production is performed; 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 method for that fungible good or fungible
material throughout the fiscal year of that person.
(h) ACCESSORIES, SPARE PARTS, OR TOOLS-
(1) IN GENERAL- Subject to paragraphs (2) and (3), accessories, spare
parts, or tools delivered with a good that form part of the good's standard
accessories, spare parts, or tools shall--
(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 production of the good undergo the applicable change in
tariff classification set out in Annex 4.1 of the Agreement.
(2) CONDITIONS- Paragraph (1) shall apply only if--
(A) the accessories, spare parts, or tools are classified with and not
invoiced separately from the good, regardless of whether they appear
specified or separately identified in the invoice for the good; and
(B) the quantities and value of the accessories, spare parts, or tools
are customary for the good.
(3) REGIONAL VALUE-CONTENT- If the good is subject to a regional value-content
requirement, the value of the accessories, spare parts, or tools shall
be taken into account as originating or nonoriginating materials, as the
case may be, in calculating the regional value-content of the good.
(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 4.1 of the Agreement, and, if
the good is subject to a regional value-content requirement, the value of
such packaging materials and containers shall be taken into account as originating
or nonoriginating 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 shipment shall be disregarded in determining whether a good
is an originating good.
(k) INDIRECT MATERIALS- An indirect material shall be treated as an originating
material without regard to where it is produced.
(l) TRANSIT AND TRANSHIPMENT- A good that has undergone production necessary
to qualify as an originating good under subsection (b) shall not be considered
to be an originating good if, subsequent to that production, the good--
(1) undergoes further production or any other operation outside the territories
of the CAFTA-DR countries, other than unloading, reloading, or any other
operation necessary to preserve the good in good condition or to transport
the good to the territory of a CAFTA-DR country; or
(2) does not remain under the control of customs authorities in the territory
of a country other than a CAFTA-DR country.
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN SETS- Notwithstanding the rules
set forth in Annex 4.1 of the Agreement, 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--
(1) each of the goods in the set is an originating good; or
(2) the total value of the nonoriginating goods in the set does not exceed--
(A) in the case of textile or apparel goods, 10 percent of the adjusted
value of the set; or
(B) in the case of a good, other than a textile or apparel good, 15
percent of the adjusted value of the set.
(n) DEFINITIONS- In this section:
(1) ADJUSTED VALUE- The term `adjusted value' means the value determined
in accordance with Articles 1 through 8, Article 15, and the corresponding
interpretive notes of the Agreement on Implementation of Article VII of
the General Agreement on Tariffs and Trade 1994 referred to in section
101(d)(8) of the Uruguay Round Agreements Act, adjusted, if necessary,
to exclude any costs, charges, or expenses incurred for transportation,
insurance, and related services incident to the international shipment
of the merchandise from the country of exportation to the place of importation.
(2) CAFTA-DR COUNTRY- The term `CAFTA-DR country' means--
(A) the United States; and
(B) Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras,
or Nicaragua, for such time as the Agreement is in force between the
United States and that country.
(3) CLASS OF MOTOR VEHICLES- The term `class of motor vehicles' means
any one of the following categories of motor vehicles:
(A) Motor vehicles provided for in subheading 8701.20, 8704.10, 8704.22,
8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, or motor vehicles
for the transport of 16 or more persons provided for in subheading 8702.10
or 8702.90.
(B) Motor vehicles provided for in subheading 8701.10 or any of subheadings
8701.30 through 8701.90.
(C) Motor vehicles for the transport of 15 or fewer persons provided
for in subheading 8702.10 or 8702.90, or motor vehicles provided for
in subheading 8704.21 or 8704.31.
(D) Motor vehicles provided for in any of subheadings 8703.21 through
8703.90.
(4) FUNGIBLE GOOD OR FUNGIBLE MATERIAL- The term `fungible good' or `fungible
material' means a good or material, as the case may be, that is interchangeable
with another good or material for commercial purposes and the properties
of which are essentially identical to such other good or material.
(5) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES- The term `generally accepted
accounting principles' means the recognized consensus or substantial authoritative
support in the territory of a CAFTA-DR country with respect to the recording
of revenues, expenses, costs, assets, and liabilities, the disclosure
of information, and the preparation of financial statements. The principles
may encompass broad guidelines of general application as well as detailed
standards, practices, and procedures.
(6) GOODS WHOLLY OBTAINED OR PRODUCED ENTIRELY IN THE TERRITORY OF ONE
OR MORE OF THE CAFTA-DR COUNTRIES- The term `goods wholly obtained or
produced entirely in the territory of one or more of the CAFTA-DR countries'
means--
(A) plants and plant products harvested or gathered in the territory
of one or more of the CAFTA-DR countries;
(B) live animals born and raised in the territory of one or more of
the CAFTA-DR countries;
(C) goods obtained in the territory of one or more of the CAFTA-DR countries
from live animals;
(D) goods obtained from hunting, trapping, fishing or aquaculture conducted
in the territory of one or more of the CAFTA-DR countries;
(E) minerals and other natural resources not included in subparagraphs
(A) through (D) that are extracted or taken in the territory of one
or more of the CAFTA-DR countries;
(F) fish, shellfish, and other marine life taken from the sea, seabed,
or subsoil outside the territory of one or more of the CAFTA-DR countries
by vessels registered or recorded with a CAFTA-DR country and flying
the flag of that country;
(G) goods produced on board factory ships from the goods referred to
in subparagraph (F), if such factory ships are registered or recorded
with that CAFTA-DR country and fly the flag of that country;
(H) goods taken by a CAFTA-DR country or a person of a CAFTA-DR country
from the seabed or subsoil outside territorial waters, if a CAFTA-DR
country has rights to exploit such seabed or subsoil;
(I) goods taken from outer space, if the goods are obtained by a CAFTA-DR
country or a person of a CAFTA-DR country and not processed in the territory
of a country other than a CAFTA-DR country;
(J) waste and scrap derived from--
(i) manufacturing or processing operations in the territory of one
or more of the CAFTA-DR countries; or
(ii) used goods collected in the territory of one or more of the CAFTA-DR
countries, if such goods are fit only for the recovery of raw materials;
(K) recovered goods derived in the territory of one or more of the CAFTA-DR
countries from used goods, and used in the territory of a CAFTA-DR country
in the production of remanufactured goods; and
(L) goods produced in the territory of one or more of the CAFTA-DR countries
exclusively from--
(i) goods referred to in any of subparagraphs (A) through (J), or
(ii) the derivatives of goods referred to in clause (i),
at any stage of production.
(7) IDENTICAL GOODS- The term `identical goods' means identical goods
as defined in the Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 referred to in section 101(d)(8) of
the Uruguay Round Agreements Act;
(8) INDIRECT MATERIAL- The term `indirect material' means a good used
in the production, testing, or inspection of a good but not physically
incorporated into the good, or a good used in the maintenance of buildings
or the operation of equipment associated with the production of a good,
including--
(B) tools, dies, and molds;
(C) spare parts and materials used in the maintenance of equipment or
buildings;
(D) lubricants, greases, compounding materials, and other materials
used in production or used to operate equipment or buildings;
(E) gloves, glasses, footwear, clothing, safety equipment, and supplies;
(F) equipment, devices, and supplies used for testing or inspecting
the good;
(G) catalysts and solvents; and
(H) any other goods that are not incorporated into the good but the
use of which in the production of the good can reasonably be demonstrated
to be a part of that production.
(9) MATERIAL- The term `material' means a good that is used in the production
of another good, including a part or an ingredient.
(10) MATERIAL THAT IS SELF-PRODUCED- The term `material that is self-produced'
means an originating material that is produced by a producer of a good
and used in the production of that good.
(11) MODEL LINE- The term `model line' means a group of motor vehicles
having the same platform or model name.
(12) NET COST- The term `net cost' means total cost minus sales promotion,
marketing, and after-sales service costs, royalties, shipping and packing
costs, and non-allowable interest costs that are included in the total
cost.
(13) NONALLOWABLE INTEREST COSTS- The term `nonallowable interest costs'
means interest costs incurred by a producer that exceed 700 basis points
above the applicable official interest rate for comparable maturities
of the CAFTA-DR country in which the producer is located.
(14) NONORIGINATING GOOD OR NONORIGINATING MATERIAL- The terms `nonoriginating
good' and `nonoriginating material' mean a good or material, as the case
may be, that does not qualify as originating under this section.
(15) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT- The term `packing
materials and containers for shipment' means the goods used to protect
a good during its transportation and does not include the packaging materials
and containers in which a good is packaged for retail sale.
(16) PREFERENTIAL TARIFF TREATMENT- The term `preferential tariff treatment'
means the customs duty rate, and the treatment under article 3.10.4 of
the Agreement, that are applicable to an originating good pursuant to
the Agreement.
(17) PRODUCER- The term `producer' means a person who engages in the production
of a good in the territory of a CAFTA-DR country.
(18) PRODUCTION- The term `production' means growing, mining, harvesting,
fishing, raising, trapping, hunting, manufacturing, processing, assembling,
or disassembling a good.
(19) REASONABLY ALLOCATE- The term `reasonably allocate' means to apportion
in a manner that would be appropriate under generally accepted accounting
principles.
(20) RECOVERED GOODS- The term `recovered goods' means materials in the
form of individual parts that are the result of--
(A) the disassembly of used goods into individual parts; and
(B) the cleaning, inspecting, testing, or other processing that is necessary
for improvement to sound working condition of such individual parts.
(21) REMANUFACTURED GOOD- The term `remanufactured good' means a good
that is classified under chapter 84, 85, or 87, or heading 9026, 9031,
or 9032, other than a good classified under heading 8418 or 8516, and
that--
(A) is entirely or partially comprised of recovered goods; and
(B) has a similar life expectancy and enjoys a factory warranty similar
to such a new good.
(22) TOTAL COST- The term `total cost' means all product costs, period
costs, and other costs for a good incurred in the territory of one or
more of the CAFTA-DR countries.
(23) USED- The term `used' means used or consumed in the production of
goods.
(o) PRESIDENTIAL PROCLAMATION AUTHORITY-
(1) IN GENERAL- The President is authorized to proclaim, as part of the
HTS--
(A) the provisions set out in Annex 4.1 of the Agreement; and
(B) any additional subordinate category necessary to carry out this
title consistent with the Agreement.
(2) FABRICS AND YARNS NOT AVAILABLE IN COMMERCIAL QUANTITIES IN THE UNITED
STATES- The President is authorized to proclaim that a fabric or yarn
is added to the list in Annex 3.25 of the Agreement in an unrestricted
quantity, as provided in article 3.25.4(e) of the Agreement.
(A) IN GENERAL- Subject to the consultation and layover provisions of
section 104, the President may proclaim modifications to the provisions
proclaimed under the authority of paragraph (1)(A), other than provisions
of chapters 50 through 63, as included in Annex 4.1 of the Agreement.
(B) ADDITIONAL PROCLAMATIONS- Notwithstanding subparagraph (A), and
subject to the consultation and layover provisions of section 104, the
President may proclaim before the end of the 1-year period beginning
on the date of the enactment of this Act, modifications to correct any
typographical, clerical, or other nonsubstantive technical error regarding
the provisions of chapters 50 through 63, as included in Annex 4.1 of
the Agreement.
(4) FABRICS, YARNS, OR FIBERS NOT AVAILABLE IN COMMERCIAL QUANTITIES IN
THE CAFTA-DR COUNTRIES-
(A) IN GENERAL- Notwithstanding paragraph 3(A), the list of fabrics,
yarns, and fibers set out in Annex 3.25 of the Agreement may be modified
as provided for in this paragraph.
(B) DEFINITIONS- In this paragraph:
(i) The term `interested entity' means the government of a CAFTA-DR
country other than the United States, a potential or actual purchaser
of a textile or apparel good, or a potential or actual supplier of
a textile or apparel good.
(ii) All references to `day' and `days' exclude Saturdays, Sundays,
and legal holidays.
(C) REQUESTS TO ADD FABRICS, YARNS, OR FIBERS- (i) An interested entity
may request the President to determine that a fabric, yarn, or fiber
is not available in commercial quantities in a timely manner in the
CAFTA-DR countries and to add that fabric, yarn, or fiber to the list
in Annex 3.25 of the Agreement in a restricted or unrestricted quantity.
(ii) After receiving a request under clause (i), the President may determine
whether--
(I) the fabric, yarn, or fiber is available in commercial quantities
in a timely manner in the CAFTA-DR countries; or
(II) any interested entity objects to the request.
(iii) The President may, within the time periods specified in clause
(iv), proclaim that a fabric, yarn, or fiber that is the subject of
a request submitted under clause (i) is added to the list in Annex 3.25
of the Agreement in an unrestricted quantity, or in any restricted quantity
that the President may establish, if the President determines under
clause (ii) that--
(I) the fabric, yarn, or fiber is not available in commercial quantities
in a timely manner in the CAFTA-DR countries; or
(II) no interested entity has objected to the request.
(iv) The time periods within which the President may issue a proclamation
under clause (iii) are--
(I) not later than 30 days after the date on which the request is
submitted under clause (i); or
(II) not later than 44 days after the request is submitted, if the
President determines, within 30 days after the date on which the request
is submitted, that the President does not have sufficient information
to make a determination under clause (ii).
(v) Notwithstanding section 103(a)(2), a proclamation made under clause
(iii) shall take effect on the date on which the text of the proclamation
is published in the Federal Register.
(vi) Not later than 6 months after proclaiming under clause (iii) that
a fabric, yarn, or fiber is added to the list in Annex 3.25 of the Agreement
in a restricted quantity, the President may eliminate the restriction
if the President determines that the fabric, yarn, or fiber is not available
in commercial quantities in a timely manner in the CAFTA-DR countries.
(D) DEEMED APPROVAL OF REQUEST- If, after an interested entity submits
a request under subparagraph (C)(i), the President does not, within
the applicable time period specified in subparagraph (C)(iv), make a
determination under subparagraph (C)(ii) regarding the request, the
fabric, yarn, or fiber that is the subject of the request shall be considered
to be added, in an unrestricted quantity, to the list in Annex 3.25
of the Agreement beginning--
(i) 45 days after the date on which the request was submitted; or
(ii) 60 days after the date on which the request was submitted, if
the President made a determination under subparagraph (C)(iv)(II).
(E) REQUESTS TO RESTRICT OR REMOVE FABRICS, YARNS, OR FIBERS- (i) Subject
to clause (ii), an interested entity may request the President to restrict
the quantity of, or remove from the list in Annex 3.25 of the Agreement,
any fabric, yarn, or fiber--
(I) that has been added to that list in an unrestricted quantity pursuant
to paragraph (2) or subparagraph (C)(iii) or (D); or
(II) with respect to which the President has eliminated a restriction
under subparagraph (C)(vi).
(ii) An interested entity may submit a request under clause (i) at any
time beginning 6 months after the date of the action described in subclause
(I) or (II) of that clause.
(iii) Not later than 30 days after the date on which a request under
clause (i) is submitted, the President may proclaim an action provided
for under clause (i) if the President determines that the fabric, yarn,
or fiber that is the subject of the request is available in commercial
quantities in a timely manner in the CAFTA-DR countries.
(iv) A proclamation declared under clause (iii) shall take effect no
earlier than the date that is 6 months after the date on which the text
of the proclamation is published in the Federal Register.
(F) PROCEDURES- The President shall establish procedures--
(i) governing the submission of a request under subparagraphs (C)
and (E); and
(ii) providing an opportunity for interested entities to submit comments
and supporting evidence before the President makes a determination
under subparagraph (C) (ii) or (vi) or (E)(iii).
SEC. 204. CUSTOMS USER FEES.
Section 13031(b) of the Consolidated Omnibus Budget Reconciliation Act of
1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph (14), the following:
`(15) No fee may be charged under subsection (a) (9) or (10) with respect
to goods that qualify as originating goods under section 203 of the Dominican
Republic-Central America-United States Free Trade Agreement Implementation
Act. Any service for which an exemption from such fee is provided by reason
of this paragraph may not be funded with money contained in the Customs
User Fee Account.'.
SEC. 205. RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND RELIQUIDATIONS
OF TEXTILE OR APPAREL GOODS.
(a) IN GENERAL- Notwithstanding section 514 of the Tariff Act of 1930 (19
U.S.C. 1514) or any other provision of law, and subject to subsection (c),
an entry--
(1) of a textile or apparel good--
(A) of a CAFTA-DR country that the United States Trade Representative
has designated as an eligible country under subsection (b), and
(B) that would have qualified as an originating good under section 203
if the good had been entered after the date of entry into force of the
Agreement for that country,
(2) that was made on or after January 1, 2004, and before the date of
the entry into force of the Agreement with respect to that country, and
(3) for which customs duties in excess of the applicable rate of duty
for that good set out in the Schedule of the United States to Annex 3.3
of the Agreement were paid,
shall be liquidated or reliquidated at the applicable rate of duty for that
good set out in the Schedule of the United States to Annex 3.3 of the Agreement,
and the Secretary of the Treasury shall refund any excess customs duties
paid with respect to such entry.
(b) ELIGIBLE COUNTRY- The United States Trade Representative shall determine,
in accordance with article 3.20 of the Agreement, which CAFTA-DR countries
are eligible countries for purposes of this section, and shall publish a
list of all such countries in the Federal Register.
(c) REQUESTS- Liquidation or reliquidation may be made under subsection
(a) with respect to an entry of a textile or apparel good only if a request
therefor is filed with the Bureau of Customs and Border Protection, within
such period as the Bureau of Customs and Border Protection shall establish
by regulation in consultation with the Secretary of the Treasury, that contains
sufficient information to enable the Bureau of Customs and Border Protection--
(1)(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be located; and
(2) to determine that the good satisfies the conditions set out in subsection
(a).
(d) DEFINITION- As used in this section, the term `entry' includes a withdrawal
from warehouse for consumption.
SEC. 206. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF
ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.
(a) DISCLOSURE OF INCORRECT INFORMATION- Section 592 of the Tariff Act of
1930 (19 U.S.C. 1592) is amended--
(A) by redesignating paragraph (9) as paragraph (10); and
(B) by inserting after paragraph (8) the following new paragraph:
`(9) PRIOR DISCLOSURE REGARDING CLAIMS UNDER THE DOMINICAN REPUBLIC-CENTRAL
AMERICA-UNITED STATES FREE TRADE AGREEMENT- An importer shall not be subject
to penalties under subsection (a) for making an incorrect claim that a
good qualifies as an originating good under section 203 of the Dominican
Republic-Central America-United States Free Trade Agreement Implementation
Act if the importer, in accordance with regulations issued by the Secretary
of the Treasury, promptly and voluntarily makes a corrected declaration
and pays any duties owing.'; and
(2) by adding at the end the following new subsection:
`(h) FALSE CERTIFICATIONS OF ORIGIN UNDER THE DOMINICAN REPUBLIC-CENTRAL
AMERICA-UNITED STATES FREE TRADE AGREEMENT-
`(1) IN GENERAL- Subject to paragraph (2), it is unlawful for any person
to certify falsely, by fraud, gross negligence, or negligence, in a CAFTA-DR
certification of origin (as defined in section 508(g)(1)(B) of this Act)
that a good exported from the United States qualifies as an originating
good under the rules of origin set out in section 203 of the Dominican
Republic-Central America-United States Free Trade Agreement Implementation
Act. The procedures and penalties of this section that apply to a violation
of subsection (a) also apply to a violation of this subsection.
`(2) PROMPT AND VOLUNTARY DISCLOSURE OF INCORRECT INFORMATION- No penalty
shall be imposed under this subsection if, promptly after an exporter
or producer that issued a CAFTA-DR certification of origin has reason
to believe that such certification contains or is based on incorrect information,
the exporter or producer voluntarily provides written notice of such incorrect
information to every person to whom the certification was issued.
`(3) EXCEPTION- A person may not be considered to have violated paragraph
(1) if--
`(A) the information was correct at the time it was provided in a CAFTA-DR
certification of origin but was later rendered incorrect due to a change
in circumstances; and
`(B) the person promptly and voluntarily provides written notice of
the change in circumstances to all persons to whom the person provided
the certification.'.
(b) DENIAL OF PREFERENTIAL TARIFF TREATMENT- Section 514 of the Tariff Act
of 1930 (19 U.S.C. 1514) is amended by adding at the end the following new
subsection:
`(h) DENIAL OF PREFERENTIAL TARIFF TREATMENT UNDER THE DOMINICAN REPUBLIC-CENTRAL
AMERICA-UNITED STATES FREE TRADE AGREEMENT- If the Bureau of Customs and
Border Protection or the Bureau of Immigration and Customs Enforcement finds
indications of a pattern of conduct by an importer, exporter, or producer
of false or unsupported representations that goods qualify under the rules
of origin set out in section 203 of the Dominican Republic-Central America-United
States Free Trade Agreement Implementation Act, the Bureau of Customs and
Border Protection, in accordance with regulations issued by the Secretary
of the Treasury, may suspend preferential tariff treatment under the Dominican
Republic-Central America-United States Free Trade Agreement to entries of
identical goods covered by subsequent representations by that importer,
exporter, or producer until the Bureau of Customs and Border Protection
determines that representations of that person are in conformity with such
section 203.'.
SEC. 207. RELIQUIDATION OF ENTRIES.
Subsection (d) of section 520 of the Tariff Act of 1930 (19 U.S.C. 1520(d))
is amended--
(1) in the matter preceding paragraph (1), by striking `or section 202
of the United States-Chile Free Trade Agreement Implementation Act' and
inserting `, section 202 of the United States-Chile Free Trade Agreement
Implementation Act, or section 203 of the Dominican Republic-Central America-United
States Free Trade Agreement Implementation Act'; and
(2) in paragraph (2), by inserting `or certifications' after `other certificates'.
SEC. 208. RECORDKEEPING REQUIREMENTS.
Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
(1) by redesignating subsection (g) as subsection (h);
(2) by inserting after subsection (f) the following new subsection:
`(g) CERTIFICATIONS OF ORIGIN FOR GOODS EXPORTED UNDER THE DOMINICAN REPUBLIC-CENTRAL
AMERICA-UNITED STATES FREE TRADE AGREEMENT-
`(1) DEFINITIONS- In this subsection:
`(A) RECORDS AND SUPPORTING DOCUMENTS- The term `records and supporting
documents' means, with respect to an exported good under paragraph (2),
records and documents related to the origin of the good, including--
`(i) the purchase, cost, and value of, and payment for, the good;
`(ii) the purchase, cost, and value of, and payment for, all materials,
including indirect materials, used in the production of the good;
and
`(iii) the production of the good in the form in which it was exported.
`(B) CAFTA-DR CERTIFICATION OF ORIGIN- The term `CAFTA-DR certification
of origin' means the certification established under article 4.16 of
the Dominican Republic-Central America-United States Free Trade Agreement
that a good qualifies as an originating good under such Agreement.
`(2) EXPORTS TO CAFTA-DR COUNTRIES- Any person who completes and issues
a CAFTA-DR certification of origin for a good exported from the United
States shall make, keep, and, pursuant to rules and regulations promulgated
by the Secretary of the Treasury, render for examination and inspection
all records and supporting documents related to the origin of the good
(including the certification or copies thereof).
`(3) RETENTION PERIOD- Records and supporting documents shall be kept
by the person who issued a CAFTA-DR certification of origin for at least
5 years after the date on which the certification was issued.'; and
(3) in subsection (h), as so redesignated--
(A) by inserting `or (g)' after `(f)'; and
(B) by striking `that subsection' and inserting `either such subsection'.
SEC. 209. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL GOODS.
(a) ACTION DURING VERIFICATION-
(1) IN GENERAL- If the Secretary of the Treasury requests the government
of a CAFTA-DR country to conduct a verification pursuant to article 3.24
of the Agreement for purposes of making a determination under paragraph
(2), the President may direct the Secretary to take appropriate action
described in subsection (b) while the verification is being conducted.
(2) DETERMINATION- A determination under this paragraph is a determination--
(A) that an exporter or producer in that country is complying with applicable
customs laws, regulations, and procedures regarding trade in textile
or apparel goods, or
(B) that a claim that a textile or apparel good exported or produced
by such exporter or producer--
(i) qualifies as an originating good under section 203 of this Act,
or
(ii) is a good of a CAFTA-DR country,
(b) APPROPRIATE ACTION DESCRIBED- Appropriate action under subsection (a)(1)
includes--
(1) suspension of preferential tariff treatment under the Agreement with
respect to--
(A) any textile or apparel good exported or produced by the person that
is the subject of a verification under subsection (a)(1) regarding compliance
described in subsection (a)(2)(A), if the Secretary determines there
is insufficient information to support any claim for preferential tariff
treatment that has been made with respect to any such good; or
(B) the textile or apparel good for which a claim of preferential tariff
treatment has been made that is the subject of a verification under
subsection (a)(1) regarding a claim described in subsection (a)(2)(B),
if the Secretary determines there is insufficient information to support
that claim;
(2) denial of preferential tariff treatment under the Agreement with respect
to--
(A) any textile or apparel good exported or produced by the person that
is the subject of a verification under subsection (a)(1) regarding compliance
described in subsection (a)(2)(A), if the Secretary determines that
the person has provided incorrect information to support any claim for
preferential tariff treatment that has been made with respect to any
such good; or
(B) the textile or apparel good for which a claim of preferential tariff
treatment has been made that is the subject of a verification under
subsection (a)(1) regarding a claim described in subsection (a)(2)(B),
if the Secretary determines that a person has provided incorrect information
to support that claim;
(3) detention of any textile or apparel good exported or produced by the
person that is the subject of a verification under subsection (a)(1) regarding
compliance described in subsection (a)(2)(A) or a claim described in subsection
(a)(2)(B), if the Secretary determines there is insufficient information
to determine the country of origin of any such good; and
(4) denial of entry into the United States of any textile or apparel good
exported or produced by the person that is the subject of a verification
under subsection (a)(1) regarding compliance described in subsection (a)(2)(A)
or a claim described in subsection (a)(2)(B), if the Secretary determines
that the person has provided incorrect information as to the country of
origin of any such good.
(c) ACTION ON COMPLETION OF A VERIFICATION- On completion of a verification
under subsection (a), the President may direct the Secretary to take appropriate
action described in subsection (d) until such time as the Secretary receives
information sufficient to make the determination under subsection (a)(2)
or until such earlier date as the President may direct.
(d) APPROPRIATE ACTION DESCRIBED- Appropriate action under subsection (c)
includes--
(1) denial of preferential tariff treatment under the Agreement with respect
to--
(A) any textile or apparel good exported or produced by the person that
is the subject of a verification under subsection (a)(1) regarding compliance
described in subsection (a)(2)(A), if the Secretary determines there
is insufficient information to support, or that the person has provided
incorrect information to support, any claim for preferential tariff
treatment that has been made with respect to any such good; or
(B) the textile or apparel good for which a claim of preferential tariff
treatment has been made that is the subject of a verification under
subsection (a)(1) regarding a claim described in subsection (a)(2)(B),
if the Secretary determines there is insufficient information to support,
or that a person has provided incorrect information to support, that
claim; and
(2) denial of entry into the United States of any textile or apparel good
exported or produced by the person that is the subject of a verification
under subsection (a)(1) regarding compliance described in subsection (a)(2)(A)
or a claim described in subsection (a)(2)(B), if the Secretary determines
there is insufficient information to determine, or that the person has
provided incorrect information as to, the country of origin of any such
good.
(e) PUBLICATION OF NAME OF PERSON- The Secretary may publish the name of
any person that the Secretary has determined--
(1) is engaged in intentional circumvention of applicable laws, regulations,
or procedures affecting trade in textile or apparel goods; or
(2) has failed to demonstrate that it produces, or is capable of producing,
textile or apparel goods.
SEC. 210. REGULATIONS.
The Secretary of the Treasury shall prescribe such regulations as may be
necessary to carry out--
(1) subsections (a) through (n) of section 203;
(2) the amendment made by section 204; and
(3) any proclamation issued under section 203(o).
TITLE III--RELIEF FROM IMPORTS
SEC. 301. DEFINITIONS.
(1) CAFTA-DR ARTICLE- The term `CAFTA-DR article' means an article that
qualifies as an originating good under section 203(b).
(2) CAFTA-DR TEXTILE OR APPAREL ARTICLE- The term `CAFTA-DR textile or
apparel article' means a textile or apparel good (as defined in section
3(5)) that is a CAFTA-DR article.
(3) DE MINIMIS SUPPLYING COUNTRY-
(A) Subject to subparagraph (B), the term `de minimis supplying country'
means a CAFTA-DR country whose share of imports of the relevant CAFTA-DR
article into the United States does not exceed 3 percent of the aggregate
volume of imports of the relevant CAFTA-DR article in the most recent
12-month period for which data are available that precedes the filing
of the petition under section 311(a).
(B) A CAFTA-DR country shall not be considered to be a de minimis supplying
country if the aggregate share of imports of the relevant CAFTA-DR article
into the United States of all CAFTA-DR countries that satisfy the conditions
of subparagraph (A) exceeds 9 percent of the aggregate volume of imports
of the relevant CAFTA-DR article during the applicable 12-month period.
(4) RELEVANT CAFTA-DR ARTICLE- The term `relevant CAFTA-DR article' means
the CAFTA-DR article with respect to which a petition has been filed under
section 311(a).
Subtitle A--Relief From Imports Benefiting From the Agreement
SEC. 311. COMMENCING OF ACTION FOR RELIEF.
(a) FILING OF PETITION- A petition requesting action under this subtitle
for the purpose of adjusting to the obligations of the United States under
the Agreement may be filed with the Commission by an entity, including a
trade association, firm, certified or recognized union, or group of workers,
that is representative of an industry. The Commission shall transmit a copy
of any petition filed under this subsection to the United States Trade Representative.
(b) INVESTIGATION AND DETERMINATION- Upon the filing of a petition under
subsection (a), the Commission, unless subsection (d) applies, shall promptly
initiate an investigation to determine whether, as a result of the reduction
or elimination of a duty provided for under the Agreement, a CAFTA-DR article
is being imported into the United States in such increased quantities, in
absolute terms or relative to domestic production, and under such conditions
that imports of the CAFTA-DR article constitute a substantial cause of serious
injury or threat thereof to the domestic industry producing an article that
is like, or directly competitive with, the imported article.
(c) APPLICABLE PROVISIONS- The following provisions of section 202 of the
Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any investigation
initiated under subsection (b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(d) ARTICLES EXEMPT FROM INVESTIGATION- No investigation may be initiated
under this section with respect to any CAFTA-DR article if, after the date
that the Agreement enters into force, import relief has been provided with
respect to that CAFTA-DR article under this subtitle.
SEC. 312. COMMISSION ACTION ON PETITION.
(a) DETERMINATION- Not later than 120 days after the date on which an investigation
is initiated under section 311(b) with respect to a petition, the Commission
shall make the determination required under that section. At that time,
the Commission shall also determine whether any CAFTA-DR country is a de
minimis supplying country.
(b) APPLICABLE PROVISIONS- For purposes of this subtitle, the provisions
of paragraphs (1), (2), and (3) of section 330(d) of the Tariff Act of 1930
(19 U.S.C. 1330(d) (1), (2), and (3)) shall be applied with respect to determinations
and findings made under this section as if such determinations and findings
were made under section 202 of the Trade Act of 1974 (19 U.S.C. 2252).
(c) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINATION AFFIRMATIVE-
If the determination made by the Commission under subsection (a) with respect
to imports of an article is affirmative, or if the President may consider
a determination of the Commission to be an affirmative determination as
provided for under paragraph (1) of section 330(d) of the Tariff Act of
1930 (19 U.S.C. 1330(d)), the Commission shall find, and recommend to the
President in the report required under subsection (d), the amount of import
relief that is necessary to remedy or prevent the injury found by the Commission
in the determination and to facilitate the efforts of the domestic industry
to make a positive adjustment to import competition. The import relief recommended
by the Commission under this subsection shall be limited to the relief described
in section 313(c). Only those members of the Commission who voted in the
affirmative under subsection (a) are eligible to vote on the proposed action
to remedy or prevent the injury found by the Commission. Members of the
Commission who did not vote in the affirmative may submit, in the report
required under subsection (d), separate views regarding what action, if
any, should be taken to remedy or prevent the injury.
(d) REPORT TO PRESIDENT- Not later than the date that is 30 days after the
date on which a determination is made under subsection (a) with respect
to an investigation, the Commission shall submit to the President a report
that includes--
(1) the determination made under subsection (a) and an explanation of
the basis for the determination;
(2) if the determination under subsection (a) is affirmative, any findings
and recommendations for import relief made under subsection (c) and an
explanation of the basis for each recommendation; and
(3) any dissenting or separate views by members of the Commission regarding
the determination and recommendation referred to in paragraphs (1) and
(2).
(e) PUBLIC NOTICE- Upon submitting a report to the President under subsection
(d), the Commission shall promptly make public such report (with the exception
of information which the Commission determines to be confidential) and shall
cause a summary thereof to be published in the Federal Register.
SEC. 313. PROVISION OF RELIEF.
(a) IN GENERAL- Not later than the date that is 30 days after the date on
which the President receives the report of the Commission in which the Commission's
determination under section 312(a) is affirmative, or which contains a determination
under section 312(a) that the President considers to be affirmative under
paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)),
the President, subject to subsection (b), shall provide relief from imports
of the article that is the subject of such determination to the extent that
the President determines necessary to remedy or prevent the injury found
by the Commission and to facilitate the efforts of the domestic industry
to make a positive adjustment to import competition.
(b) EXCEPTION- The President is not required to provide import relief under
this section if the President determines that the provision of the import
relief will not provide greater economic and social benefits than costs.
(1) IN GENERAL- The import relief that the President is authorized to
provide under this section with respect to imports of an article is as
follows:
(A) The suspension of any further reduction provided for under Annex
3.3 of the Agreement in the duty imposed on such article.
(B) An increase in the rate of duty imposed on such article to a level
that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed under the HTS on like
articles at the time the import relief is provided; or
(ii) the column 1 general rate of duty imposed under the HTS on like
articles on the day before the date on which the Agreement enters
into force.
(2) PROGRESSIVE LIBERALIZATION- If the period for which import relief
is provided under this section is greater than 1 year, the President shall
provide for the progressive liberalization (described in article 8.2.3
of the Agreement) of such relief at regular intervals during the period
of its application.
(1) IN GENERAL- Subject to paragraph (2), any import relief that the President
is authorized to provide under this section may not, in the aggregate,
be in effect for more than 4 years.
(A) IN GENERAL- If the initial period for any import relief provided
under this section is less than 4 years, the President, after receiving
a determination from the Commission under subparagraph (B) that is affirmative,
or which the President considers to be affirmative under paragraph (1)
of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)),
may extend the effective period of any import relief provided under
this section, subject to the limitation under paragraph (1), if the
President determines that--
(i) the import relief continues to be necessary to remedy or prevent
serious injury and to facilitate adjustment by the domestic industry
to import competition; and
(ii) there is evidence that the industry is making a positive adjustment
to import competition.
(B) ACTION BY COMMISSION- (i) Upon a petition on behalf of the industry
concerned that is filed with the Commission not earlier than the date
which is 9 months, and not later than the date which is 6 months, before
the date on which any action taken under subsection (a) is to terminate,
the Commission shall conduct an investigation to determine whether action
under this section continues to be necessary to remedy or prevent serious
injury and whether there is evidence that the industry is making a positive
adjustment to import competition.
(ii) The Commission shall publish notice of the commencement of any
proceeding under this subparagraph in the Federal Register and shall,
within a reasonable time thereafter, hold a public hearing at which
the Commission shall afford interested parties and consumers an opportunity
to be present, to present evidence, and to respond to the presentations
of other parties and consumers, and otherwise to be heard.
(iii) The Commission shall transmit to the President a report on its
investigation and determination under this subparagraph not later than
60 days before the action under subsection (a) is to terminate, unless
the President specifies a different date.
(e) RATE AFTER TERMINATION OF IMPORT RELIEF- When import relief under this
section is terminated with respect to an article--
(1) the rate of duty on that article after such termination and on or
before December 31 of the year in which such termination occurs shall
be the rate that, according to the Schedule of the United States to Annex
3.3 of the Agreement would have been in effect 1 year after the provision
of relief under subsection (a); and
(2) the rate of duty for that article after December 31 of the year in
which termination occurs shall be, at the discretion of the President,
either--
(A) the applicable rate of duty for that article set out in the Schedule
of the United States to Annex 3.3 of the Agreement; or
(B) the rate of duty resulting from the elimination of the tariff in
equal annual stages ending on the date set out in the Schedule of the
United States to Annex 3.3 of the Agreement for the elimination of the
tariff.
(f) ARTICLES EXEMPT FROM RELIEF- No import relief may be provided under
this section on--
(1) any article subject to import relief under chapter 1 of title II of
the Trade Act of 1974 (19 U.S.C. 2251 et seq.); or
(2) imports of a CAFTA-DR article of a CAFTA-DR country that is a de minimis
supplying country with respect to that article.
SEC. 314. TERMINATION OF RELIEF AUTHORITY.
(a) GENERAL RULE- Subject to subsection (b), no import relief may be provided
under this subtitle after the date that is 10 years after the date on which
the Agreement enters into force.
(b) EXCEPTION- If an article for which relief is provided under this subtitle
is an article for which the period for tariff elimination, set out in the
Schedule of the United States to Annex 3.3 of the Agreement, is greater
than 10 years, no relief under this subtitle may be provided for that article
after the date on which that period ends.
SEC. 315. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 2133), any
import relief provided by the President under section 313 shall be treated
as action taken under chapter 1 of title II of such Act.
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is amended
in the first sentence--
(1) by striking `and'; and
(2) by inserting before the period at the end `, and title III of the
Dominican Republic-Central America-United States Free Trade Agreement
Implementation Act'.
Subtitle B--Textile and Apparel Safeguard Measures
SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.
(a) IN GENERAL- A request under this subtitle for the purpose of adjusting
to the obligations of the United States under the Agreement may be filed
with the President by an interested party. Upon the filing of a request,
the President shall review the request to determine, from information presented
in the request, whether to commence consideration of the request.
(b) PUBLICATION OF REQUEST- If the President determines that the request
under subsection (a) provides the information necessary for the request
to be considered, the President shall cause to be published in the Federal
Register a notice of commencement of consideration of the request, and notice
seeking public comments regarding the request. The notice shall include
a summary of the request and the dates by which comments and rebuttals must
be received.
SEC. 322. DETERMINATION AND PROVISION OF RELIEF.
(1) IN GENERAL- If a positive determination is made under section 321(b),
the President shall determine whether, as a result of the elimination
of a duty under the Agreement, a CAFTA-DR textile or apparel article of
a specified CAFTA-DR country is being imported into the United States
in such increased quantities, in absolute terms or relative to the domestic
market for that article, and under such conditions as to cause serious
damage, or actual threat thereof, to a domestic industry producing an
article that is like, or directly competitive with, the imported article.
(2) SERIOUS DAMAGE- In making a determination under paragraph (1), the
President--
(A) shall examine the effect of increased imports on the domestic industry,
as reflected in changes in such relevant economic factors as output,
productivity, utilization of capacity, inventories, market share, exports,
wages, employment, domestic prices, profits, and investment, none of
which is necessarily decisive; and
(B) shall not consider changes in technology or consumer preference
as factors supporting a determination of serious damage or actual threat
thereof.
(3) DEADLINE FOR DETERMINATION- The President shall make the determination
under paragraph (1) no later than 30 days after the completion of any
consultations held pursuant to article 3.23.4 of the Agreement.
(1) IN GENERAL- If a determination under subsection (a) is affirmative,
the President may provide relief from imports of the article that is the
subject of such determination, as provided in paragraph (2), to the extent
that the President determines necessary to remedy or prevent the serious
damage and to facilitate adjustment by the domestic industry.
(2) NATURE OF RELIEF- The relief that the President is authorized to provide
under this subsection with respect to imports of an article is an increase
in the rate of duty imposed on the article to a level that does not exceed
the lesser of--
(A) the column 1 general rate of duty imposed under the HTS on like
articles at the time the import relief is provided; or
(B) the column 1 general rate of duty imposed under the HTS on like
articles on the day before the date on which the Agreement enters into
force.
SEC. 323. PERIOD OF RELIEF.
(a) IN GENERAL- Subject to subsection (b), any import relief that the President
provides under subsection (b) of section 322 may not, in the aggregate,
be in effect for more than 3 years.
(b) EXTENSION- If the initial period for any import relief provided under
section 322 is less than 3 years, the President may extend the effective
period of any import relief provided under that section, subject to the
limitation set forth in subsection (a), if the President determines that--
(1) the import relief continues to be necessary to remedy or prevent serious
damage and to facilitate adjustment by the domestic industry to import
competition; and
(2) there is evidence that the industry is making a positive adjustment
to import competition.
SEC. 324. ARTICLES EXEMPT FROM RELIEF.
The President may not provide import relief under this subtitle with respect
to any article if--
(1) import relief previously has been provided under this subtitle with
respect to that article; or
(2) the article is subject to import relief under--
(B) chapter 1 of title II of the Trade Act of 1974.
SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
When import relief under this subtitle is terminated with respect to an
article, the rate of duty on that article shall be the rate that would have
been in effect, but for the provision of such relief.
SEC. 326. TERMINATION OF RELIEF AUTHORITY.
No import relief may be provided under this subtitle with respect to any
article after the date that is 5 years after the date on which the Agreement
enters into force.
SEC. 327. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 2133), any
import relief provided by the President under this subtitle shall be treated
as action taken under chapter 1 of title II of that Act.
SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.
The President may not release information received in connection with a
review under this subtitle which the President considers to be confidential
business information unless the party submitting the confidential business
information had notice, at the time of submission, that such information
would be released by the President, or such party subsequently consents
to the release of the information. To the extent a party submits confidential
business information, it shall also provide a nonconfidential version of
the information in which the confidential business information is summarized
or, if necessary, deleted.
Subtitle C--Cases Under Title II of the Trade Act of 1974
SEC. 331. FINDINGS AND ACTION ON GOODS OF CAFTA-DR COUNTRIES.
(a) EFFECT OF IMPORTS- If, in any investigation initiated under chapter
1 of title II of the Trade Act of 1974, the Commission makes an affirmative
determination (or a determination which the President may treat as an affirmative
determination under such chapter by reason of section 330(d) of the Tariff
Act of 1930), the Commission shall also find (and report to the President
at the time such injury determination is submitted to the President) whether
imports of the article of each CAFTA-DR country that qualify as originating
goods under section 203(b) are a substantial cause of serious injury or
threat thereof.
(b) PRESIDENTIAL DETERMINATION REGARDING IMPORTS OF CAFTA-DR COUNTRIES-
In determining the nature and extent of action to be taken under chapter
1 of title II of the Trade Act of 1974, the President may exclude from the
action goods of a CAFTA-DR country with respect to which the Commission
has made a negative finding under subsection (a).
TITLE IV--MISCELLANEOUS
SEC. 401. ELIGIBLE PRODUCTS.
Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)(A))
is amended--
(1) by striking `or' at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and inserting `;
or'; and
(3) by adding at the end the following new clause:
`(iv) a party to the Dominican Republic-Central America-United States
Free Trade Agreement, a product or service of that country or instrumentality
which is covered under that Agreement for procurement by the United
States.'.
SEC. 402. MODIFICATIONS TO THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT.
(a) FORMER BENEFICIARY COUNTRIES- Section 212(a)(1) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended by adding at the
end the following new subparagraph:
`(F) The term `former beneficiary country' means a country that ceases
to be designated as a beneficiary country under this title because the
country has become a party to a free trade agreement with the United
States.'.
(b) COUNTRIES ELIGIBLE FOR DESIGNATION AS BENEFICIARY COUNTRIES- Section
212(b) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(b))
is amended by striking from the list of countries eligible for designation
as beneficiary countries--
(1) `Costa Rica', effective on the date the President terminates the designation
of Costa Rica as a beneficiary country pursuant to section 201(a)(3);
(2) `Dominican Republic', effective on the date the President terminates
the designation of the Dominican Republic as a beneficiary country pursuant
to section 201(a)(3);
(3) `El Salvador', effective on the date the President terminates the
designation of El Salvador as a beneficiary country pursuant to section
201(a)(3);
(4) `Guatemala', effective on the date the President terminates the designation
of Guatemala as a beneficiary country pursuant to section 201(a)(3);
(5) `Honduras', effective on the date the President terminates the designation
of Honduras as a beneficiary country pursuant to section 201(a)(3); and
(6) `Nicaragua', effective on the date the President terminates the designation
of Nicaragua as a beneficiary country pursuant to section 201(a)(3).
(c) MATERIALS OF, OR PROCESSING IN, FORMER BENEFICIARY COUNTRIES- Section
213(a)(1) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(a)(1))
is amended by striking `the Commonwealth of Puerto Rico and the United States
Virgin Islands' and inserting `the Commonwealth of Puerto Rico, the United
States Virgin Islands, and any former beneficiary country'.
(d) DEFINITIONS AND SPECIAL RULES- Section 213(b)(5) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(b)(5)) is amended by adding at the
end the following new subparagraphs:
`(G) FORMER CBTPA BENEFICIARY COUNTRY- The term `former CBTPA beneficiary
country' means a country that ceases to be designated as a CBTPA beneficiary
country under this title because the country has become a party to a
free trade agreement with the United States.
`(H) ARTICLES THAT UNDERGO PRODUCTION IN A CBTPA BENEFICIARY COUNTRY
AND A FORMER CBTPA BENEFICIARY COUNTRY- (i) For purposes of determining
the eligibility of an article for preferential treatment under paragraph
(2) or (3), references in either such paragraph, and in subparagraph
(C) of this paragraph to--
`(I) a `CBTPA beneficiary country' shall be considered to include
any former CBTPA beneficiary country, and
`(II) `CBTPA beneficiary countries' shall be considered to include
former CBTPA beneficiary countries,
if the article, or a good used in the production of the article, undergoes
production in a CBTPA beneficiary country.
`(ii) An article that is eligible for preferential treatment under clause
(i) shall not be ineligible for such treatment because the article is
imported directly from a former CBTPA beneficiary country.
`(iii) Notwithstanding clauses (i) and (ii), an article that is a good
of a former CBTPA beneficiary country for purposes of section 304 of
the Tariff Act of 1930 (19 U.S.C. 1304) or section 334 of the Uruguay
Round Agreements Act (19 U.S.C. 3592), as the case may be, shall not
be eligible for preferential treatment under paragraph (2) or (3), unless--
`(I) it is an article that is a good of the Dominican Republic under
either such section 304 or 334; and
`(II) the article, or a good used in the production of the article,
undergoes production in Haiti.'.
SEC. 403. PERIODIC REPORTS AND MEETINGS ON LABOR OBLIGATIONS AND LABOR
CAPACITY-BUILDING PROVISIONS.
(1) IN GENERAL- Not later than the end of the 2-year period beginning
on the date the Agreement enters into force, and not later than the end
of each 2-year period thereafter during the succeeding 14-year period,
the President shall report to the Congress on the progress made by the
CAFTA-DR countries in--
(A) implementing Chapter Sixteen and Annex 16.5 of the Agreement; and
(B) implementing the White Paper.
(2) WHITE PAPER- In this section, the term `White Paper' means the report
of April 2005 of the Working Group of the Vice Ministers Responsible for
Trade and Labor in the Countries of Central America and the Dominican
Republic entitled `The Labor Dimension in Central America and the Dominican
Republic - Building on Progress: Strengthening Compliance and Enhancing
Capacity'.
(3) CONTENTS OF REPORTS- Each report under paragraph (1) shall include
the following:
(A) A description of the progress made by the Labor Cooperation and
Capacity Building Mechanism established by article 16.5 and Annex 16.5
of the Agreement, and the Labor Affairs Council established by article
16.4 of the Agreement, in achieving their stated goals, including a
description of the capacity-building projects undertaken, funds received,
and results achieved, in each CAFTA-DR country.
(B) Recommendations on how the United States can facilitate full implementation
of the recommendations contained in the White Paper.
(C) A description of the work done by the CAFTA-DR countries with the
International Labor Organization to implement the recommendations contained
in the White Paper, and the efforts of the CAFTA-DR countries with international
organizations, through the Labor Cooperation and Capacity Building Mechanism
referred to in subparagraph (A), to advance common commitments regarding
labor matters.
(D) A summary of public comments received on--
(i) capacity-building efforts by the United States envisaged by article
16.5 and Annex 16.5 of the Agreement;
(ii) efforts by the United States to facilitate full implementation
of the White Paper recommendations; and
(iii) the efforts made by the CAFTA-DR countries to comply with article
16.5 and Annex 16.5 of the Agreement and to fully implement the White
Paper recommendations, including the progress made by the CAFTA-DR
countries in affording to workers internationally-recognized worker
rights through improved capacity.
(4) SOLICITATION OF PUBLIC COMMENTS- The President shall establish a mechanism
to solicit public comments for purposes of paragraph (3)(D).
(b) Periodic Meetings of Secretary of Labor With Labor Ministers of CAFTA-DR
Countries-
(1) PERIODIC MEETINGS- The Secretary of Labor should take the necessary
steps to meet periodically with the labor ministers of the CAFTA-DR countries
to discuss--
(A) the operation of the labor provisions of the Agreement;
(B) progress on the commitments made by the CAFTA-DR countries to implement
the recommendations contained in the White Paper;
(C) the work of the International Labor Organization in the CAFTA-DR
countries, and other cooperative efforts, to afford to workers internationally-recognized
worker rights; and
(D) such other matters as the Secretary of Labor and the labor ministers
consider appropriate.
(2) INCLUSION IN BIENNIAL REPORTS- The President shall include in each
report under subsection (a), as the President deems appropriate, summaries
of the meetings held pursuant to paragraph (1).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
END
