CHAPTER 24 —BIPARTISAN TRADE PROMOTION AUTHORITY
§3801. Short title and findings
(a) Short title
This chapter may be cited as the "Bipartisan Trade Promotion Authority Act of 2002".
(b) Findings
The Congress makes the following findings:
(1) The expansion of international trade is vital to the national security of the United States. Trade is critical to the economic growth and strength of the United States and to its leadership in the world. Stable trading relationships promote security and prosperity. Trade agreements today serve the same purposes that security pacts played during the Cold War, binding nations together through a series of mutual rights and obligations. Leadership by the United States in international trade fosters open markets, democracy, and peace throughout the world.
(2) The national security of the United States depends on its economic security, which in turn is founded upon a vibrant and growing industrial base. Trade expansion has been the engine of economic growth. Trade agreements maximize opportunities for the critical sectors and building blocks of the economy of the United States, such as information technology, telecommunications and other leading technologies, basic industries, capital equipment, medical equipment, services, agriculture, environmental technology, and intellectual property. Trade will create new opportunities for the United States and preserve the unparalleled strength of the United States in economic, political, and military affairs. The United States, secured by expanding trade and economic opportunities, will meet the challenges of the twenty-first century.
(3) Support for continued trade expansion requires that dispute settlement procedures under international trade agreements not add to or diminish the rights and obligations provided in such agreements. Therefore—
(A) the recent pattern of decisions by dispute settlement panels of the WTO and the Appellate Body to impose obligations and restrictions on the use of antidumping, countervailing, and safeguard measures by WTO members under the Antidumping Agreement, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Safeguards has raised concerns; and
(B) the Congress is concerned that dispute settlement panels of the WTO and the Appellate Body appropriately apply the standard of review contained in Article 17.6 of the Antidumping Agreement, to provide deference to a permissible interpretation by a WTO member of provisions of that Agreement, and to the evaluation by a WTO member of the facts where that evaluation is unbiased and objective and the establishment of the facts is proper.
(
References in Text
This chapter, referred to in subsec. (a), was in the original "This title", meaning title XXI of
Short Title
Ex. Ord. No. 13277. Delegation of Certain Authorities and Assignment of Certain Functions Under the Trade Act of 2002
Ex. Ord. No. 13277, Nov. 19, 2002, 67 F.R. 70305, as amended by Ex. Ord. No. 13346, §4, July 8, 2004, 69 F.R. 41906, provided:
By the authority vested in me as President by the Constitution and the laws of the United States, including the Trade Act of 2002 (the "Act") (
(b) The exercise of the following authorities of, and functions specifically assigned to the President, under Division B of the Act are reserved to the President:
(1) Section 2102(c)(1), (c)(6), (c)(10) and (e) of the Act [
(2) Section 2103(a)(1), (a)(4), (a)(6), b(1) [(b)(1)], (c)(1)(B)(i), and (c)(2) of the Act [
(3) Section 2105(a)(1)(A) and (C) of the Act [
(4) Section 2108(b) of the Act [
(c)(i) The Secretary of State, in consultation with the Secretary of Labor and the U.S. Trade Representative, shall carry out the functions of section 2102(c)(2) of the Act [
(ii) The Secretary of State, in consultation with the U.S. Trade Representative, shall carry out the functions under section 2102(c)(3) of the Act with respect to establishing consultative mechanisms, with the advice and assistance of the Secretary of the Interior, the Secretary of Health and Human Services, the Administrator of the Environmental Protection Agency, the Secretary of Commerce and, as the Secretary of State determines appropriate, the heads of such other departments and agencies. The U.S. Trade Representative, in consultation with the Secretary of State, shall carry out the reporting function under section 2103(c)(3) [
(iii) The U.S. Trade Representative shall carry out the functions under section 2102(c)(5) of the Act. The U.S. Trade Representative shall, in consultation with the Secretary of Labor, carry out the reporting function and the function of making a report available under section 2102(c)(5).
(iv) The Secretary of Labor shall carry out section 2102(c)(7) of the Act, in consultation with the Secretary of State.
(v) The Secretary of Labor, in consultation with the Secretary of State and the U.S. Trade Representative, shall carry out the functions under section 2102(c)(8) and (c)(9).
(vi) The Secretary of the Treasury shall carry out section 2102(c)(12) of the Act, including any appropriate consultations with the Congress relating thereto.
(b) The exercise of the following authorities of, and functions specifically assigned to, the President under Division C of the Act are reserved to the President:
(i) The authority to proclaim under sections 204(b)(1) and 204(b)(3)(B)(ii), and the authority to designate beneficiary countries under section 204(b)(6)(B), of the Andean Trade Preference Act [
(ii) The authority to make determinations under section 203(e)(1)(B) of the Andean Trade Preference Act [
(c) The head of the executive department of which the United States Customs Service is a part shall take such actions to carry out determinations and actions pursuant to the Andean Trade Preference Act, as amended [
(b) In exercising authority delegated by, or performing functions assigned in, this order, and in performing duties related to the trade agreements program as defined in Executive Order 11846 [
(i) Shall ensure that all actions taken by them are consistent with the President's constitutional authority to (A) conduct the foreign affairs of the United States, including the commencement, conduct, and termination of negotiations with foreign countries and international organizations, (B) withhold information the disclosure of which could impair the foreign relations, the national security, the deliberative processes of the Executive, or the performance of the Executive's constitutional duties, (C) recommend for congressional consideration such measures as the President may judge necessary or expedient, and (D) supervise the unitary executive branch;
(ii) May redelegate authority delegated by this order and may further assign functions assigned by this order to officers of any other department or agency within the executive branch to the extent permitted by law and such redelegation or further assignment shall be published in the Federal Register; and
(iii) Shall consult the Attorney General as appropriate in implementing this subsection.
George W. Bush.
§3802. Trade negotiating objectives
(a) Overall trade negotiating objectives
The overall trade negotiating objectives of the United States for agreements subject to the provisions of
(1) to obtain more open, equitable, and reciprocal market access;
(2) to obtain the reduction or elimination of barriers and distortions that are directly related to trade and that decrease market opportunities for United States exports or otherwise distort United States trade;
(3) to further strengthen the system of international trading disciplines and procedures, including dispute settlement;
(4) to foster economic growth, raise living standards, and promote full employment in the United States and to enhance the global economy;
(5) to ensure that trade and environmental policies are mutually supportive and to seek to protect and preserve the environment and enhance the international means of doing so, while optimizing the use of the world's resources;
(6) to promote respect for worker rights and the rights of children consistent with core labor standards of the ILO (as defined in
(7) to seek provisions in trade agreements under which parties to those agreements strive to ensure that they do not weaken or reduce the protections afforded in domestic environmental and labor laws as an encouragement for trade;
(8) to ensure that trade agreements afford small businesses equal access to international markets, equitable trade benefits, and expanded export market opportunities, and provide for the reduction or elimination of trade barriers that disproportionately impact small businesses; and
(9) to promote universal ratification and full compliance with ILO Convention No. 182 Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labor.
(b) Principal trade negotiating objectives
(1) Trade barriers and distortions
The principal negotiating objectives of the United States regarding trade barriers and other trade distortions are—
(A) to expand competitive market opportunities for United States exports and to obtain fairer and more open conditions of trade by reducing or eliminating tariff and nontariff barriers and policies and practices of foreign governments directly related to trade that decrease market opportunities for United States exports or otherwise distort United States trade; and
(B) to obtain reciprocal tariff and nontariff barrier elimination agreements, with particular attention to those tariff categories covered in
(2) Trade in services
The principal negotiating objective of the United States regarding trade in services is to reduce or eliminate barriers to international trade in services, including regulatory and other barriers that deny national treatment and market access or unreasonably restrict the establishment or operations of service suppliers.
(3) Foreign investment
Recognizing that United States law on the whole provides a high level of protection for investment, consistent with or greater than the level required by international law, the principal negotiating objectives of the United States regarding foreign investment are to reduce or eliminate artificial or trade-distorting barriers to foreign investment, while ensuring that foreign investors in the United States are not accorded greater substantive rights with respect to investment protections than United States investors in the United States, and to secure for investors important rights comparable to those that would be available under United States legal principles and practice, by—
(A) reducing or eliminating exceptions to the principle of national treatment;
(B) freeing the transfer of funds relating to investments;
(C) reducing or eliminating performance requirements, forced technology transfers, and other unreasonable barriers to the establishment and operation of investments;
(D) seeking to establish standards for expropriation and compensation for expropriation, consistent with United States legal principles and practice;
(E) seeking to establish standards for fair and equitable treatment consistent with United States legal principles and practice, including the principle of due process;
(F) providing meaningful procedures for resolving investment disputes;
(G) seeking to improve mechanisms used to resolve disputes between an investor and a government through—
(i) mechanisms to eliminate frivolous claims and to deter the filing of frivolous claims;
(ii) procedures to ensure the efficient selection of arbitrators and the expeditious disposition of claims;
(iii) procedures to enhance opportunities for public input into the formulation of government positions; and
(iv) providing for an appellate body or similar mechanism to provide coherence to the interpretations of investment provisions in trade agreements; and
(H) ensuring the fullest measure of transparency in the dispute settlement mechanism, to the extent consistent with the need to protect information that is classified or business confidential, by—
(i) ensuring that all requests for dispute settlement are promptly made public;
(ii) ensuring that—
(I) all proceedings, submissions, findings, and decisions are promptly made public; and
(II) all hearings are open to the public; and
(iii) establishing a mechanism for acceptance of amicus curiae submissions from businesses, unions, and nongovernmental organizations.
(4) Intellectual property
The principal negotiating objectives of the United States regarding trade-related intellectual property are—
(A) to further promote adequate and effective protection of intellectual property rights, including through—
(i)(I) ensuring accelerated and full implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights referred to in
(II) ensuring that the provisions of any multilateral or bilateral trade agreement governing intellectual property rights that is entered into by the United States reflect a standard of protection similar to that found in United States law;
(ii) providing strong protection for new and emerging technologies and new methods of transmitting and distributing products embodying intellectual property;
(iii) preventing or eliminating discrimination with respect to matters affecting the availability, acquisition, scope, maintenance, use, and enforcement of intellectual property rights;
(iv) ensuring that standards of protection and enforcement keep pace with technological developments, and in particular ensuring that rightholders have the legal and technological means to control the use of their works through the Internet and other global communication media, and to prevent the unauthorized use of their works; and
(v) providing strong enforcement of intellectual property rights, including through accessible, expeditious, and effective civil, administrative, and criminal enforcement mechanisms;
(B) to secure fair, equitable, and nondiscriminatory market access opportunities for United States persons that rely upon intellectual property protection; and
(C) to respect the Declaration on the TRIPS Agreement and Public Health, adopted by the World Trade Organization at the Fourth Ministerial Conference at Doha, Qatar on November 14, 2001.
(5) Transparency
The principal negotiating objective of the United States with respect to transparency is to obtain wider and broader application of the principle of transparency through—
(A) increased and more timely public access to information regarding trade issues and the activities of international trade institutions;
(B) increased openness at the WTO and other international trade fora by increasing public access to appropriate meetings, proceedings, and submissions, including with regard to dispute settlement and investment; and
(C) increased and more timely public access to all notifications and supporting documentation submitted by parties to the WTO.
(6) Anti-corruption
The principal negotiating objectives of the United States with respect to the use of money or other things of value to influence acts, decisions, or omissions of foreign governments or officials or to secure any improper advantage in a manner affecting trade are—
(A) to obtain high standards and appropriate domestic enforcement mechanisms applicable to persons from all countries participating in the applicable trade agreement that prohibit such attempts to influence acts, decisions, or omissions of foreign governments; and
(B) to ensure that such standards do not place United States persons at a competitive disadvantage in international trade.
(7) Improvement of the WTO and multilateral trade agreements
The principal negotiating objectives of the United States regarding the improvement of the World Trade Organization, the Uruguay Round Agreements, and other multilateral and bilateral trade agreements are—
(A) to achieve full implementation and extend the coverage of the World Trade Organization and such agreements to products, sectors, and conditions of trade not adequately covered; and
(B) to expand country participation in and enhancement of the Information Technology Agreement and other trade agreements.
(8) Regulatory practices
The principal negotiating objectives of the United States regarding the use of government regulation or other practices by foreign governments to provide a competitive advantage to their domestic producers, service providers, or investors and thereby reduce market access for United States goods, services, and investments are—
(A) to achieve increased transparency and opportunity for the participation of affected parties in the development of regulations;
(B) to require that proposed regulations be based on sound science, cost-benefit analysis, risk assessment, or other objective evidence;
(C) to establish consultative mechanisms among parties to trade agreements to promote increased transparency in developing guidelines, rules, regulations, and laws for government procurement and other regulatory regimes; and
(D) to achieve the elimination of government measures such as price controls and reference pricing which deny full market access for United States products.
(9) Electronic commerce
The principal negotiating objectives of the United States with respect to electronic commerce are—
(A) to ensure that current obligations, rules, disciplines, and commitments under the World Trade Organization apply to electronic commerce;
(B) to ensure that—
(i) electronically delivered goods and services receive no less favorable treatment under trade rules and commitments than like products delivered in physical form; and
(ii) the classification of such goods and services ensures the most liberal trade treatment possible;
(C) to ensure that governments refrain from implementing trade-related measures that impede electronic commerce;
(D) where legitimate policy objectives require domestic regulations that affect electronic commerce, to obtain commitments that any such regulations are the least restrictive on trade, nondiscriminatory, and transparent, and promote an open market environment; and
(E) to extend the moratorium of the World Trade Organization on duties on electronic transmissions.
(10) Reciprocal trade in agriculture
(A) The principal negotiating objective of the United States with respect to agriculture is to obtain competitive opportunities for United States exports of agricultural commodities in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in United States markets and to achieve fairer and more open conditions of trade in bulk, specialty crop, and value-added commodities by—
(i) reducing or eliminating, by a date certain, tariffs or other charges that decrease market opportunities for United States exports—
(I) giving priority to those products that are subject to significantly higher tariffs or subsidy regimes of major producing countries; and
(II) providing reasonable adjustment periods for United States import-sensitive products, in close consultation with the Congress on such products before initiating tariff reduction negotiations;
(ii) reducing tariffs to levels that are the same as or lower than those in the United States;
(iii) reducing or eliminating subsidies that decrease market opportunities for United States exports or unfairly distort agriculture markets to the detriment of the United States;
(iv) allowing the preservation of programs that support family farms and rural communities but do not distort trade;
(v) developing disciplines for domestic support programs, so that production that is in excess of domestic food security needs is sold at world prices;
(vi) eliminating government policies that create price-depressing surpluses;
(vii) eliminating state trading enterprises whenever possible;
(viii) developing, strengthening, and clarifying rules and effective dispute settlement mechanisms to eliminate practices that unfairly decrease United States market access opportunities or distort agricultural markets to the detriment of the United States, particularly with respect to import-sensitive products, including—
(I) unfair or trade-distorting activities of state trading enterprises and other administrative mechanisms, with emphasis on requiring price transparency in the operation of state trading enterprises and such other mechanisms in order to end cross subsidization, price discrimination, and price undercutting;
(II) unjustified trade restrictions or commercial requirements, such as labeling, that affect new technologies, including biotechnology;
(III) unjustified sanitary or phytosanitary restrictions, including those not based on scientific principles in contravention of the Uruguay Round Agreements;
(IV) other unjustified technical barriers to trade; and
(V) restrictive rules in the administration of tariff rate quotas;
(ix) eliminating practices that adversely affect trade in perishable or cyclical products, while improving import relief mechanisms to recognize the unique characteristics of perishable and cyclical agriculture;
(x) ensuring that import relief mechanisms for perishable and cyclical agriculture are as accessible and timely to growers in the United States as those mechanisms that are used by other countries;
(xi) taking into account whether a party to the negotiations has failed to adhere to the provisions of already existing trade agreements with the United States or has circumvented obligations under those agreements;
(xii) taking into account whether a product is subject to market distortions by reason of a failure of a major producing country to adhere to the provisions of already existing trade agreements with the United States or by the circumvention by that country of its obligations under those agreements;
(xiii) otherwise ensuring that countries that accede to the World Trade Organization have made meaningful market liberalization commitments in agriculture;
(xiv) taking into account the impact that agreements covering agriculture to which the United States is a party, including the North American Free Trade Agreement, have on the United States agricultural industry;
(xv) maintaining bona fide food assistance programs and preserving United States market development and export credit programs; and
(xvi) striving to complete a general multilateral round in the World Trade Organization by January 1, 2005, and seeking the broadest market access possible in multilateral, regional, and bilateral negotiations, recognizing the effect that simultaneous sets of negotiations may have on United States import-sensitive commodities (including those subject to tariff-rate quotas).
(B)(i) Before commencing negotiations with respect to agriculture, the United States Trade Representative, in consultation with the Congress, shall seek to develop a position on the treatment of seasonal and perishable agricultural products to be employed in the negotiations in order to develop an international consensus on the treatment of seasonal or perishable agricultural products in investigations relating to dumping and safeguards and in any other relevant area.
(ii) During any negotiations on agricultural subsidies, the United States Trade Representative shall seek to establish the common base year for calculating the Aggregated Measurement of Support (as defined in the Agreement on Agriculture) as the end of each country's Uruguay Round implementation period, as reported in each country's Uruguay Round market access schedule.
(iii) The negotiating objective provided in subparagraph (A) applies with respect to agricultural matters to be addressed in any trade agreement entered into under section 3803(a) or (b) of this title, including any trade agreement entered into under section 3803(a) or (b) of this title that provides for accession to a trade agreement to which the United States is already a party, such as the North American Free Trade Agreement and the United States-Canada Free Trade Agreement.
(11) Labor and the environment
The principal negotiating objectives of the United States with respect to labor and the environment are—
(A) to ensure that a party to a trade agreement with the United States does not fail to effectively enforce its environmental or labor laws, through a sustained or recurring course of action or inaction, in a manner affecting trade between the United States and that party after entry into force of a trade agreement between those countries;
(B) to recognize that parties to a trade agreement retain the right to exercise discretion with respect to investigatory, prosecutorial, regulatory, and compliance matters and to make decisions regarding the allocation of resources to enforcement with respect to other labor or environmental matters determined to have higher priorities, and to recognize that a country is effectively enforcing its laws if a course of action or inaction reflects a reasonable exercise of such discretion, or results from a bona fide decision regarding the allocation of resources, and no retaliation may be authorized based on the exercise of these rights or the right to establish domestic labor standards and levels of environmental protection;
(C) to strengthen the capacity of United States trading partners to promote respect for core labor standards (as defined in
(D) to strengthen the capacity of United States trading partners to protect the environment through the promotion of sustainable development;
(E) to reduce or eliminate government practices or policies that unduly threaten sustainable development;
(F) to seek market access, through the elimination of tariffs and nontariff barriers, for United States environmental technologies, goods, and services; and
(G) to ensure that labor, environmental, health, or safety policies and practices of the parties to trade agreements with the United States do not arbitrarily or unjustifiably discriminate against United States exports or serve as disguised barriers to trade.
(12) Dispute settlement and enforcement
The principal negotiating objectives of the United States with respect to dispute settlement and enforcement of trade agreements are—
(A) to seek provisions in trade agreements providing for resolution of disputes between governments under those trade agreements in an effective, timely, transparent, equitable, and reasoned manner, requiring determinations based on facts and the principles of the agreements, with the goal of increasing compliance with the agreements;
(B) to seek to strengthen the capacity of the Trade Policy Review Mechanism of the World Trade Organization to review compliance with commitments;
(C) to seek adherence by panels convened under the Dispute Settlement Understanding and by the Appellate Body to the standard of review applicable under the Uruguay Round Agreement involved in the dispute, including greater deference, where appropriate, to the fact-finding and technical expertise of national investigating authorities;
(D) to seek provisions encouraging the early identification and settlement of disputes through consultation;
(E) to seek provisions to encourage the provision of trade-expanding compensation if a party to a dispute under the agreement does not come into compliance with its obligations under the agreement;
(F) to seek provisions to impose a penalty upon a party to a dispute under the agreement that—
(i) encourages compliance with the obligations of the agreement;
(ii) is appropriate to the parties, nature, subject matter, and scope of the violation; and
(iii) has the aim of not adversely affecting parties or interests not party to the dispute while maintaining the effectiveness of the enforcement mechanism; and
(G) to seek provisions that treat United States principal negotiating objectives equally with respect to—
(i) the ability to resort to dispute settlement under the applicable agreement;
(ii) the availability of equivalent dispute settlement procedures; and
(iii) the availability of equivalent remedies.
(13) WTO extended negotiations
The principal negotiating objectives of the United States regarding trade in civil aircraft are those set forth in
(14) Trade remedy laws
The principal negotiating objectives of the United States with respect to trade remedy laws are—
(A) to preserve the ability of the United States to enforce rigorously its trade laws, including the antidumping, countervailing duty, and safeguard laws, and avoid agreements that lessen the effectiveness of domestic and international disciplines on unfair trade, especially dumping and subsidies, or that lessen the effectiveness of domestic and international safeguard provisions, in order to ensure that United States workers, agricultural producers, and firms can compete fully on fair terms and enjoy the benefits of reciprocal trade concessions; and
(B) to address and remedy market distortions that lead to dumping and subsidization, including overcapacity, cartelization, and market-access barriers.
(15) Border taxes
The principal negotiating objective of the United States regarding border taxes is to obtain a revision of the WTO rules with respect to the treatment of border adjustments for internal taxes to redress the disadvantage to countries relying primarily on direct taxes for revenue rather than indirect taxes.
(16) Textile negotiations
The principal negotiating objectives of the United States with respect to trade in textiles and apparel articles are to obtain competitive opportunities for United States exports of textiles and apparel in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in United States markets and to achieve fairer and more open conditions of trade in textiles and apparel.
(17) Worst forms of child labor
The principal negotiating objective of the United States with respect to the trade-related aspects of the worst forms of child labor are to seek commitments by parties to trade agreements to vigorously enforce their own laws prohibiting the worst forms of child labor.
(c) Promotion of certain priorities
In order to address and maintain United States competitiveness in the global economy, the President shall—
(1) seek greater cooperation between the WTO and the ILO;
(2) seek to establish consultative mechanisms among parties to trade agreements to strengthen the capacity of United States trading partners to promote respect for core labor standards (as defined in
(3) seek to establish consultative mechanisms among parties to trade agreements to strengthen the capacity of United States trading partners to develop and implement standards for the protection of the environment and human health based on sound science, and report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the content and operation of such mechanisms;
(4) conduct environmental reviews of future trade and investment agreements, consistent with Executive Order 13141 of November 16, 1999, and its relevant guidelines, and report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on such reviews;
(5) review the impact of future trade agreements on United States employment, including labor markets, modeled after Executive Order 13141 to the extent appropriate in establishing procedures and criteria, report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on such review, and make that report available to the public;
(6) take into account other legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or safety, essential security, and consumer interests and the law and regulations related thereto;
(7) direct the Secretary of Labor to consult with any country seeking a trade agreement with the United States concerning that country's labor laws and provide technical assistance to that country if needed;
(8) in connection with any trade negotiations entered into under this chapter, submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a meaningful labor rights report of the country, or countries, with respect to which the President is negotiating, on a time frame determined in accordance with
(9) with respect to any trade agreement which the President seeks to implement under trade authorities procedures, submit to the Congress a report describing the extent to which the country or countries that are parties to the agreement have in effect laws governing exploitative child labor;
(10) continue to promote consideration of multilateral environmental agreements and consult with parties to such agreements regarding the consistency of any such agreement that includes trade measures with existing environmental exceptions under Article XX of the GATT 1994;
(11) report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, not later than 12 months after the imposition of a penalty or remedy by the United States permitted by a trade agreement to which this chapter applies, on the effectiveness of the penalty or remedy applied under United States law in enforcing United States rights under the trade agreement; and
(12) seek to establish consultative mechanisms among parties to trade agreements to examine the trade consequences of significant and unanticipated currency movements and to scrutinize whether a foreign government is engaged in a pattern of manipulating its currency to promote a competitive advantage in international trade.
The report under paragraph (11) shall address whether the penalty or remedy was effective in changing the behavior of the targeted party and whether the penalty or remedy had any adverse impact on parties or interests not party to the dispute.
(d) Consultations
(1) Consultations with congressional advisers
In the course of negotiations conducted under this chapter, the United States Trade Representative shall consult closely and on a timely basis with, and keep fully apprised of the negotiations, the Congressional Oversight Group convened under
(2) Consultation before agreement initialed
In the course of negotiations conducted under this chapter, the United States Trade Representative shall—
(A) consult closely and on a timely basis (including immediately before initialing an agreement) with, and keep fully apprised of the negotiations, the congressional advisers for trade policy and negotiations appointed under
(B) with regard to any negotiations and agreement relating to agricultural trade, also consult closely and on a timely basis (including immediately before initialing an agreement) with, and keep fully apprised of the negotiations, the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
(e) Adherence to obligations under Uruguay Round Agreements
In determining whether to enter into negotiations with a particular country, the President shall take into account the extent to which that country has implemented, or has accelerated the implementation of, its obligations under the Uruguay Round Agreements.
(
References in Text
Executive Order 13141, referred to in subsec. (c)(4) and (5), is set out as a note under
This chapter, referred to in subsec. (c)(8), was in the original "this title", meaning title XXI of
Amendments
2004—Subsec. (c)(8).
Subsec. (c)(12).
Delegation of Functions
For delegation of functions of President under this section, see section 1 of Ex. Ord. No. 13277, Nov. 19, 2002, 67 F.R. 70305, set out as a note under
§3803. Trade agreements authority
(a) Agreements regarding tariff barriers
(1) In general
Whenever the President determines that one or more existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, priorities, and objectives of this chapter will be promoted thereby, the President—
(A) may enter into trade agreements with foreign countries before—
(i) July 1, 2005; or
(ii) July 1, 2007, if trade authorities procedures are extended under subsection (c); and
(B) may, subject to paragraphs (2) and (3), proclaim—
(i) such modification or continuance of any existing duty,
(ii) such continuance of existing duty-free or excise treatment, or
(iii) such additional duties,
as the President determines to be required or appropriate to carry out any such trade agreement.
The President shall notify the Congress of the President's intention to enter into an agreement under this subsection.
(2) Limitations
No proclamation may be made under paragraph (1) that—
(A) reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on August 6, 2002) to a rate of duty which is less than 50 percent of the rate of such duty that applies on August 6, 2002;
(B) reduces the rate of duty below that applicable under the Uruguay Round Agreements, on any import sensitive agricultural product; or
(C) increases any rate of duty above the rate that applied on August 6, 2002.
(3) Aggregate reduction; exemption from staging
(A) Aggregate reduction
Except as provided in subparagraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement entered into under paragraph (1) shall not exceed the aggregate reduction which would have been in effect on such day if—
(i) a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed under paragraph (1) to carry out such agreement with respect to such article; and
(ii) a reduction equal to the amount applicable under clause (i) had taken effect at 1-year intervals after the effective date of such first reduction.
(B) Exemption from staging
No staging is required under subparagraph (A) with respect to a duty reduction that is proclaimed under paragraph (1) for an article of a kind that is not produced in the United States. The United States International Trade Commission shall advise the President of the identity of articles that may be exempted from staging under this subparagraph.
(4) Rounding
If the President determines that such action will simplify the computation of reductions under paragraph (3), the President may round an annual reduction by an amount equal to the lesser of—
(A) the difference between the reduction without regard to this paragraph and the next lower whole number; or
(B) one-half of 1 percent ad valorem.
(5) Other limitations
A rate of duty reduction that may not be proclaimed by reason of paragraph (2) may take effect only if a provision authorizing such reduction is included within an implementing bill provided for under
(6) Other tariff modifications
Notwithstanding paragraphs (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the consultation and layover requirements of section 115 of the Uruguay Round Agreements Act [
(7) Authority under Uruguay Round Agreements Act not affected
Nothing in this subsection shall limit the authority provided to the President under section 111(b) of the Uruguay Round Agreements Act (
(b) Agreements regarding tariff and nontariff barriers
(1) In general
(A) Whenever the President determines that—
(i) one or more existing duties or any other import restriction of any foreign country or the United States or any other barrier to, or other distortion of, international trade unduly burdens or restricts the foreign trade of the United States or adversely affects the United States economy, or
(ii) the imposition of any such barrier or distortion is likely to result in such a burden, restriction, or effect,
and that the purposes, policies, priorities, and objectives of this chapter will be promoted thereby, the President may enter into a trade agreement described in subparagraph (B) during the period described in subparagraph (C).
(B) The President may enter into a trade agreement under subparagraph (A) with foreign countries providing for—
(i) the reduction or elimination of a duty, restriction, barrier, or other distortion described in subparagraph (A); or
(ii) the prohibition of, or limitation on the imposition of, such barrier or other distortion.
(C) The President may enter into a trade agreement under this paragraph before—
(i) July 1, 2005; or
(ii) July 1, 2007, if trade authorities procedures are extended under subsection (c).
(2) Conditions
A trade agreement may be entered into under this subsection only if such agreement makes progress in meeting the applicable objectives described in section 3802(a) and (b) of this title and the President satisfies the conditions set forth in
(3) Bills qualifying for trade authorities procedures
(A) The provisions of
(B) The provisions referred to in subparagraph (A) are—
(i) a provision approving a trade agreement entered into under this subsection and approving the statement of administrative action, if any, proposed to implement such trade agreement; and
(ii) if changes in existing laws or new statutory authority are required to implement such trade agreement or agreements, provisions, necessary or appropriate to implement such trade agreement or agreements, either repealing or amending existing laws or providing new statutory authority.
(c) Extension disapproval process for Congressional trade authorities procedures
(1) In general
Except as provided in
(A) the trade authorities procedures apply to implementing bills submitted with respect to trade agreements entered into under subsection (b) before July 1, 2005; and
(B) the trade authorities procedures shall be extended to implementing bills submitted with respect to trade agreements entered into under subsection (b) after June 30, 2005, and before July 1, 2007, if (and only if)—
(i) the President requests such extension under paragraph (2); and
(ii) neither House of the Congress adopts an extension disapproval resolution under paragraph (5) before July 1, 2005.
(2) Report to Congress by the President
If the President is of the opinion that the trade authorities procedures should be extended to implementing bills described in paragraph (1)(B), the President shall submit to the Congress, not later than April 1, 2005, a written report that contains a request for such extension, together with—
(A) a description of all trade agreements that have been negotiated under subsection (b) and the anticipated schedule for submitting such agreements to the Congress for approval;
(B) a description of the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this chapter, and a statement that such progress justifies the continuation of negotiations; and
(C) a statement of the reasons why the extension is needed to complete the negotiations.
(3) Other reports to Congress
(A) Report by the Advisory Committee
The President shall promptly inform the Advisory Committee for Trade Policy and Negotiations established under
(i) its views regarding the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this chapter; and
(ii) a statement of its views, and the reasons therefor, regarding whether the extension requested under paragraph (2) should be approved or disapproved.
(B) Report by ITC
The President shall promptly inform the International Trade Commission of the President's decision to submit a report to the Congress under paragraph (2). The International Trade Commission shall submit to the Congress as soon as practicable, but not later than June 1, 2005, a written report that contains a review and analysis of the economic impact on the United States of all trade agreements implemented between August 6, 2002, and the date on which the President decides to seek an extension requested under paragraph (2).
(4) Status of reports
The reports submitted to the Congress under paragraphs (2) and (3), or any portion of such reports, may be classified to the extent the President determines appropriate.
(5) Extension disapproval resolutions
(A) For purposes of paragraph (1), the term "extension disapproval resolution" means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: "That the ____ disapproves the request of the President for the extension, under section 2103(c)(1)(B)(i) of the Bipartisan Trade Promotion Authority Act of 2002, of the trade authorities procedures under that Act to any implementing bill submitted with respect to any trade agreement entered into under section 2103(b) of that Act after June 30, 2005.", with the blank space being filled with the name of the resolving House of the Congress.
(B) Extension disapproval resolutions—
(i) may be introduced in either House of the Congress by any member of such House; and
(ii) shall be referred, in the House of Representatives, to the Committee on Ways and Means and, in addition, to the Committee on Rules.
(C) The provisions of section 2192(d) and (e) of this title (relating to the floor consideration of certain resolutions in the House and Senate) apply to extension disapproval resolutions.
(D) It is not in order for—
(i) the Senate to consider any extension disapproval resolution not reported by the Committee on Finance;
(ii) the House of Representatives to consider any extension disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules; or
(iii) either House of the Congress to consider an extension disapproval resolution after June 30, 2005.
(d) Commencement of negotiations
In order to contribute to the continued economic expansion of the United States, the President shall commence negotiations covering tariff and nontariff barriers affecting any industry, product, or service sector, and expand existing sectoral agreements to countries that are not parties to those agreements, in cases where the President determines that such negotiations are feasible and timely and would benefit the United States. Such sectors include agriculture, commercial services, intellectual property rights, industrial and capital goods, government procurement, information technology products, environmental technology and services, medical equipment and services, civil aircraft, and infrastructure products. In so doing, the President shall take into account all of the principal negotiating objectives set forth in
(
References in Text
The Bipartisan Trade Promotion Authority Act of 2002, referred to in subsec. (c)(5)(A), is title XXI of
Amendments
2004—Subsec. (a)(1)(A).
Subsec. (b)(1)(C).
Subsec. (c)(1)(B)(ii).
Subsec. (c)(2).
Subsec. (c)(3).
Delegation of Functions
For delegation of functions of President under this section, see section 1 of Ex. Ord. No. 13277, Nov. 19, 2002, 67 F.R. 70305, set out as a note under
§3804. Consultations and assessment
(a) Notice and consultation before negotiation
The President, with respect to any agreement that is subject to the provisions of
(1) provide, at least 90 calendar days before initiating negotiations, written notice to the Congress of the President's intention to enter into the negotiations and set forth therein the date the President intends to initiate such negotiations, the specific United States objectives for the negotiations, and whether the President intends to seek an agreement, or changes to an existing agreement;
(2) before and after submission of the notice, consult regarding the negotiations with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, such other committees of the House and Senate as the President deems appropriate, and the Congressional Oversight group convened under
(3) upon the request of a majority of the members of the Congressional Oversight Group under
(b) Negotiations regarding agriculture
(1) In general
Before initiating or continuing negotiations the subject matter of which is directly related to the subject matter under
(2) Special consultations on import sensitive products
(A) Before initiating negotiations with regard to agriculture, and, with respect to the Free Trade Area for the Americas and negotiations with regard to agriculture under the auspices of the World Trade Organization, as soon as practicable after August 6, 2002, the United States Trade Representative shall—
(i) identify those agricultural products subject to tariff-rate quotas on August 6, 2002, and agricultural products subject to tariff reductions by the United States as a result of the Uruguay Round Agreements, for which the rate of duty was reduced on January 1, 1995, to a rate which was not less than 97.5 percent of the rate of duty that applied to such article on December 31, 1994;
(ii) consult with the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate concerning—
(I) whether any further tariff reductions on the products identified under clause (i) should be appropriate, taking into account the impact of any such tariff reduction on the United States industry producing the product concerned;
(II) whether the products so identified face unjustified sanitary or phytosanitary restrictions, including those not based on scientific principles in contravention of the Uruguay Round Agreements; and
(III) whether the countries participating in the negotiations maintain export subsidies or other programs, policies, or practices that distort world trade in such products and the impact of such programs, policies, and practices on United States producers of the products;
(iii) request that the International Trade Commission prepare an assessment of the probable economic effects of any such tariff reduction on the United States industry producing the product concerned and on the United States economy as a whole; and
(iv) upon complying with clauses (i), (ii), and (iii), notify the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate of those products identified under clause (i) for which the Trade Representative intends to seek tariff liberalization in the negotiations and the reasons for seeking such tariff liberalization.
(B) If, after negotiations described in subparagraph (A) are commenced—
(i) the United States Trade Representative identifies any additional agricultural product described in subparagraph (A)(i) for tariff reductions which were not the subject of a notification under subparagraph (A)(iv), or
(ii) any additional agricultural product described in subparagraph (A)(i) is the subject of a request for tariff reductions by a party to the negotiations,
the Trade Representative shall, as soon as practicable, notify the committees referred to in subparagraph (A)(iv) of those products and the reasons for seeking such tariff reductions.
(3) Negotiations regarding the fishing industry
Before initiating, or continuing, negotiations which directly relate to fish or shellfish trade with any country, the President shall consult with the Committee on Ways and Means and the Committee on Resources of the House of Representatives, and the Committee on Finance and the Committee on Commerce, Science, and Transportation of the Senate, and shall keep the Committees apprised of negotiations on an ongoing and timely basis.
(c) Negotiations regarding textiles
Before initiating or continuing negotiations the subject matter of which is directly related to textiles and apparel products with any country, the President shall assess whether United States tariffs on textile and apparel products that were bound under the Uruguay Round Agreements are lower than the tariffs bound by that country and whether the negotiation provides an opportunity to address any such disparity. The President shall consult with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate concerning the results of the assessment, whether it is appropriate for the United States to agree to further tariff reductions based on the conclusions reached in the assessment, and how all applicable negotiating objectives will be met.
(d) Consultation with Congress before agreements entered into
(1) Consultation
Before entering into any trade agreement under
(A) the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate;
(B) each other committee of the House and the Senate, and each joint committee of the Congress, which has jurisdiction over legislation involving subject matters which would be affected by the trade agreement; and
(C) the Congressional Oversight Group convened under
(2) Scope
The consultation described in paragraph (1) shall include consultation with respect to—
(A) the nature of the agreement;
(B) how and to what extent the agreement will achieve the applicable purposes, policies, priorities, and objectives of this chapter; and
(C) the implementation of the agreement under
(3) Report regarding United States trade remedy laws
(A) Changes in certain trade laws
The President, at least 180 calendar days before the day on which the President enters into a trade agreement under
(i) the range of proposals advanced in the negotiations with respect to that agreement, that may be in the final agreement, and that could require amendments to title VII of the Tariff Act of 1930 [
(ii) how these proposals relate to the objectives described in
(B) Certain agreements
With respect to a trade agreement entered into with Chile or Singapore, the report referred to in subparagraph (A) shall be submitted by the President at least 90 calendar days before the day on which the President enters into that agreement.
(C) Resolutions
(i) At any time after the transmission of the report under subparagraph (A), if a resolution is introduced with respect to that report in either House of Congress, the procedures set forth in clauses (iii) through (vi) shall apply to that resolution if—
(I) no other resolution with respect to that report has previously been reported in that House of Congress by the Committee on Ways and Means or the Committee on Finance, as the case may be, pursuant to those procedures; and
(II) no procedural disapproval resolution under
(ii) For purposes of this subparagraph, the term "resolution" means only a resolution of either House of Congress, the matter after the resolving clause of which is as follows: "That the ____ finds that the proposed changes to United States trade remedy laws contained in the report of the President transmitted to the Congress on ____ under section 2104(d)(3) of the Bipartisan Trade Promotion Authority Act of 2002 with respect to ____, are inconsistent with the negotiating objectives described in section 2102(b)(14) of that Act.", with the first blank space being filled with the name of the resolving House of Congress, the second blank space being filled with the appropriate date of the report, and the third blank space being filled with the name of the country or countries involved.
(iii) Resolutions in the House of Representatives—
(I) may be introduced by any Member of the House;
(II) shall be referred to the Committee on Ways and Means and, in addition, to the Committee on Rules; and
(III) may not be amended by either Committee.
(iv) 1 Resolutions in the Senate—
(I) may be introduced by any Member of the Senate;
(II) shall be referred to the Committee on Finance; and
(III) may not be amended.
(iv) 1 It is not in order for the House of Representatives to consider any resolution that is not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules.
(v) It is not in order for the Senate to consider any resolution that is not reported by the Committee on Finance.
(vi) The provisions of section 152(d) and (e) of the Trade Act of 1974 (
(e) Advisory Committee reports
The report required under section 135(e)(1) of the Trade Act of 1974 [
(f) ITC assessment
(1) In general
The President, at least 90 calendar days before the day on which the President enters into a trade agreement under
(2) ITC assessment
Not later than 90 calendar days after the President enters into the agreement, the Commission shall submit to the President and the Congress a report assessing the likely impact of the agreement on the United States economy as a whole and on specific industry sectors, including the impact the agreement will have on the gross domestic product, exports and imports, aggregate employment and employment opportunities, the production, employment, and competitive position of industries likely to be significantly affected by the agreement, and the interests of United States consumers.
(3) Review of empirical literature
In preparing the assessment, the Commission shall review available economic assessments regarding the agreement, including literature regarding any substantially equivalent proposed agreement, and shall provide in its assessment a description of the analyses used and conclusions drawn in such literature, and a discussion of areas of consensus and divergence between the various analyses and conclusions, including those of the Commission regarding the agreement.
(
References in Text
The Tariff Act of 1930, referred to in subsec. (d)(3)(A)(i), is act June 17, 1930, ch. 497,
The Trade Act of 1974, referred to in subsec. (d)(3)(A)(i), is
Sections 2104(d)(3) and 2102(b)(14) of the Bipartisan Trade Promotion Authority Act of 2002, referred to in subsec. (d)(3)(C)(ii), are classified to subsec. (d)(3) of this section and
Change of Name
Committee on Resources of House of Representatives changed to Committee on Natural Resources of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.
Delegation of Functions
For delegation of functions of President under this section, see section 1 of Ex. Ord. No. 13277, Nov. 19, 2002, 67 F.R. 70305, set out as a note under
1 So in original. Two cls. (iv) have been enacted.
§3805. Implementation of trade agreements
(a) In general
(1) Notification and submission
Any agreement entered into under
(A) the President, at least 90 calendar days before the day on which the President enters into the trade agreement, notifies the House of Representatives and the Senate of the President's intention to enter into the agreement, and promptly thereafter publishes notice of such intention in the Federal Register;
(B) within 60 days after entering into the agreement, the President submits to the Congress a description of those changes to existing laws that the President considers would be required in order to bring the United States into compliance with the agreement;
(C) after entering into the agreement, the President submits to the Congress, on a day on which both Houses of Congress are in session, a copy of the final legal text of the agreement, together with—
(i) a draft of an implementing bill described in
(ii) a statement of any administrative action proposed to implement the trade agreement; and
(iii) the supporting information described in paragraph (2); and
(D) the implementing bill is enacted into law.
(2) Supporting information
The supporting information required under paragraph (1)(C)(iii) consists of—
(A) an explanation as to how the implementing bill and proposed administrative action will change or affect existing law; and
(B) a statement—
(i) asserting that the agreement makes progress in achieving the applicable purposes, policies, priorities, and objectives of this chapter; and
(ii) setting forth the reasons of the President regarding—
(I) how and to what extent the agreement makes progress in achieving the applicable purposes, policies, and objectives referred to in clause (i);
(II) whether and how the agreement changes provisions of an agreement previously negotiated;
(III) how the agreement serves the interests of United States commerce;
(IV) how the implementing bill meets the standards set forth in
(V) how and to what extent the agreement makes progress in achieving the applicable purposes, policies, and objectives referred to in
(3) Reciprocal benefits
In order to ensure that a foreign country that is not a party to a trade agreement entered into under
(4) Disclosure of commitments
Any agreement or other understanding with a foreign government or governments (whether oral or in writing) that—
(A) relates to a trade agreement with respect to which the Congress enacts an implementing bill under trade authorities procedures, and
(B) is not disclosed to the Congress before an implementing bill with respect to that agreement is introduced in either House of Congress,
shall not be considered to be part of the agreement approved by the Congress and shall have no force and effect under United States law or in any dispute settlement body.
(b) Limitations on trade authorities procedures
(1) For lack of notice or consultations
(A) In general
The trade authorities procedures shall not apply to any implementing bill submitted with respect to a trade agreement or trade agreements entered into under
(B) Procedural disapproval resolution
(i) For purposes of this paragraph, the term "procedural disapproval resolution" means a resolution of either House of Congress, the sole matter after the resolving clause of which is as follows: "That the President has failed or refused to notify or consult in accordance with the Bipartisan Trade Promotion Authority Act of 2002 on negotiations with respect to ____________ and, therefore, the trade authorities procedures under that Act shall not apply to any implementing bill submitted with respect to such trade agreement or agreements.", with the blank space being filled with a description of the trade agreement or agreements with respect to which the President is considered to have failed or refused to notify or consult.
(ii) For purposes of clause (i), the President has "failed or refused to notify or consult in accordance with the Bipartisan Trade Promotion Authority Act of 2002" on negotiations with respect to a trade agreement or trade agreements if—
(I) the President has failed or refused to consult (as the case may be) in accordance with
(II) guidelines under
(III) the President has not met with the Congressional Oversight Group pursuant to a request made under
(IV) the agreement or agreements fail to make progress in achieving the purposes, policies, priorities, and objectives of this chapter.
(2) Procedures for considering resolutions
(A) Procedural disapproval resolutions—
(i) in the House of Representatives—
(I) may be introduced by any Member of the House;
(II) shall be referred to the Committee on Ways and Means and, in addition, to the Committee on Rules; and
(III) may not be amended by either Committee; and
(ii) in the Senate—
(I) may be introduced by any Member of the Senate;
(II) shall be referred to the Committee on Finance; and
(III) may not be amended.
(B) The provisions of section 2192(d) and (e) of this title (relating to the floor consideration of certain resolutions in the House and Senate) apply to a procedural disapproval resolution introduced with respect to a trade agreement if no other procedural disapproval resolution with respect to that trade agreement has previously been reported in that House of Congress by the Committee on Ways and Means or the Committee on Finance, as the case may be, and if no resolution described in
(C) It is not in order for the House of Representatives to consider any procedural disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules.
(D) It is not in order for the Senate to consider any procedural disapproval resolution not reported by the Committee on Finance.
(3) For failure to meet other requirements
Not later than December 31, 2002, the Secretary of Commerce, in consultation with the Secretary of State, the Secretary of the Treasury, the Attorney General, and the United States Trade Representative, shall transmit to the Congress a report setting forth the strategy of the executive branch to address concerns of the Congress regarding whether dispute settlement panels and the Appellate Body of the WTO have added to obligations, or diminished rights, of the United States, as described in
(c) Rules of House of Representatives and Senate
Subsection (b) of this section,
(1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such are deemed a part of the rules of each House, respectively, and such procedures supersede other rules only to the extent that they are inconsistent with such other rules; and
(2) with the full recognition of the constitutional right of either House to change the rules (so far as relating to the procedures of that House) at any time, in the same manner, and to the same extent as any other rule of that House.
(
References in Text
The Bipartisan Trade Promotion Authority Act of 2002, referred to in subsec. (b)(1)(B), is title XXI of
Amendments
2004—Subsec. (c).
Delegation of Functions
For delegation of functions of President under this section, see section 1 of Ex. Ord. No. 13277, Nov. 19, 2002, 67 F.R. 70305, set out as a note under
United States–Panama Trade Promotion Agreement Implementation Act
"SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
"(a)
"(b)
"SEC. 2. PURPOSES.
"The purposes of this Act are—
"(1) to approve and implement the free trade agreement between the United States and Panama entered into under the authority of section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002 (
"(2) to strengthen and develop economic relations between the United States and Panama for their mutual benefit;
"(3) to establish free trade between the United States and Panama 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.
"In this Act:
"(1)
"(2)
"(3) HTS.—The term 'HTS' means the Harmonized Tariff Schedule of the United States.
"(4)
"TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
"SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
"(a)
"(1) the United States–Panama Trade Promotion Agreement entered into on June 28, 2007, with the Government of Panama and submitted to Congress on October 3, 2011; and
"(2) the statement of administrative action proposed to implement the Agreement that was submitted to Congress on October 3, 2011.
"(b)
"SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.
"(a)
"(1)
"(2)
"(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)
"(1)
"(2)
"(A) any law of a political subdivision of a State; and
"(B) any State law regulating or taxing the business of insurance.
"(c)
"(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)
"(1)
"(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 on which the Agreement enters into force [Oct. 31, 2012] is appropriately implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date on which the Agreement enters into force.
"(2)
"(3)
"(b)
"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 (
"(B) the Commission;
"(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 the committees referred to in paragraph (2) regarding the proposed action during the period referred to in paragraph (3).
"SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
"(a)
"(b)
"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
"SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
"(a)
"(b)
"(1)
"(2)
"(c)
"TITLE II—CUSTOMS PROVISIONS
"SEC. 201. TARIFF MODIFICATIONS.
"(a)
"(1)
"(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, 3.26, 3.27, 3.28, and 3.29, and Annex 3.3, of the Agreement.
"(2)
"(3)
"(A)
"(B)
"(i) sections 771(7)(G)(ii)(III) and 771(7)(H) of the Tariff Act of 1930 (
"(ii) the duty-free treatment provided under paragraph 4 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)
"(1) such modifications or continuation of any duty,
"(2) such modifications as the United States may agree to with Panama 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 with respect to Panama provided for by the Agreement.
"(c)
"(d)
"SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.
"(a)
"(1)
"(A) the base rate in the Schedule of the United States to Annex 3.3 of the Agreement;
"(B) the column 1 general rate of duty that would, on the day before the date on which the Agreement enters into force [Oct. 31, 2012], apply to a good classifiable in the same 8-digit subheading of the HTS as the safeguard good; or
"(C) 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.
"(2)
"(A) that is included in the Schedule of the United States to Annex 3.17 of the Agreement;
"(B) that qualifies as an originating good under section 203; and
"(C) for which a claim for preferential tariff treatment under the Agreement has been made.
"(3)
"(4)
"(A)
"(i) in the case of a safeguard good classified under subheading 0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 0202.20.80, or 0202.30.80 of the HTS—
"(I) in year 1 of the Agreement, 330 metric tons; and
"(II) in year 2 of the Agreement through year 14 of the Agreement, a quantity equal to 110 percent of the trigger level for that safeguard good for the preceding calendar year; and
"(ii) in the case of any other safeguard good, 115 percent of the quantity that is provided for that safeguard good in the corresponding calendar year in the applicable table contained in Appendix I to the General Notes to the Schedule of the United States to Annex 3.3 of the Agreement.
"(B)
"(5)
"(6)
"(b)
"(1)
"(2)
"(A) in the case of a good classified under subheading 0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 0202.20.80, or 0202.30.80 of the HTS—
"(i) in year 1 of the Agreement through year 6 of the Agreement, an amount equal to 100 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and
"(ii) in year 7 of the Agreement through year 14 of the Agreement, an amount equal to 50 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty;
"(B) in the case of a good classified under subheading 0406.10.08, 0406.10.88, 0406.20.91, 0406.30.91, 0406.90.97, or 2105.00.20 of the HTS—
"(i) in year 1 of the Agreement through year 11 of the Agreement, an amount equal to 100 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and
"(ii) in year 12 of the Agreement through year 14 of the Agreement, an amount equal to 50 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and
"(C) in the case of any other safeguard good—
"(i) in year 1 of the Agreement through year 13 of the Agreement, an amount equal to 100 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and
"(ii) in year 14 of the Agreement through year 16 of the Agreement, an amount equal to 50 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty.
"(3)
"(c)
"(1) subtitle A of title III of this Act; or
"(2)
"(d)
"SEC. 203. RULES OF ORIGIN.
"(a)
"(1)
"(2)
"(3)
"(b)
"(1) the good is a good wholly obtained or produced entirely in the territory of Panama, the United States, or both;
"(2) the good—
"(A) is produced entirely in the territory of Panama, the United States, or both, 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 Panama, the United States, or both, exclusively from materials described in paragraph (1) or (2).
"(c)
"(1)
"(2)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(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.
"(3)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(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)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(i)
"(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.
"(C)
"(i)
"(I) with respect to all motor vehicles in any one 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 Panama or the United States.
"(ii)
"(I) is the same model line of motor vehicles, is in the same class of motor vehicles, and is produced in the same plant in the territory of Panama or the United States, 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 Panama or the United States, 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 Panama or the United States as the good described in clause (i) for which regional value-content is being calculated.
"(D)
"(i) average the amounts calculated under the net cost 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) the fiscal year of the producer of such goods,
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 such goods that are exported to the territory of Panama or the United States.
"(E)
"(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 these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or nonallowable interest costs.
"(d)
"(1)
"(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 (
"(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)
"(A)
"(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Panama, the United States, or both, to the location of the producer.
"(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Panama, the United States, or both, 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)
"(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Panama, the United States, or both, to the location of the producer.
"(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Panama, the United States, or both, 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 Panama, the United States, or both.
"(e)
"(1)
"(2)
"(f)
"(1)
"(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 forth 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)
"(A) A nonoriginating material provided for in
"(B) A nonoriginating material provided for in
"(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
"(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
"(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)
"(A)
"(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 (
"(B)
"(C)
"(g)
"(1)
"(A)
"(B)
"(i) averaging;
"(ii) 'last-in, first-out';
"(iii) 'first-in, first-out'; or
"(iv) any other method—
"(I) recognized in the generally accepted accounting principles of the country in which the production is performed (whether Panama or the United States); or
"(II) otherwise accepted by that country.
"(2)
"(h)
"(1)
"(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 forth in Annex 4.1 of the Agreement.
"(2)
"(A) the accessories, spare parts, or tools are classified with and not invoiced separately from the good, regardless of whether such accessories, spare parts, or tools are specified or are 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)
"(i)
"(j)
"(k)
"(l)
"(1) undergoes further production or any other operation outside the territory of Panama or the United States, 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 Panama or the United States; or
"(2) does not remain under the control of customs authorities in the territory of a country other than Panama or the United States.
"(m)
"(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 goods, other than textile or apparel goods, 15 percent of the adjusted value of the set.
"(n)
"(1)
"(2)
"(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.
"(3)
"(4)
"(A) means the recognized consensus or substantial authoritative support given in the territory of Panama or the United States, as the case may be, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements; and
"(B) may encompass broad guidelines for general application as well as detailed standards, practices, and procedures.
"(5)
"(A) Plants and plant products harvested or gathered in the territory of Panama, the United States, or both.
"(B) Live animals born and raised in the territory of Panama, the United States, or both.
"(C) Goods obtained in the territory of Panama, the United States, or both from live animals.
"(D) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of Panama, the United States, or both.
"(E) Minerals and other natural resources not included in subparagraphs (A) through (D) that are extracted or taken from the territory of Panama, the United States, or both.
"(F) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of Panama or the United States by—
"(i) a vessel that is registered or recorded with Panama and flying the flag of Panama; or
"(ii) a vessel that is documented under the laws of the United States.
"(G) Goods produced on board a factory ship from goods referred to in subparagraph (F), if such factory ship—
"(i) is registered or recorded with Panama and flies the flag of Panama; or
"(ii) is a vessel that is documented under the laws of the United States.
"(H)(i) Goods taken by Panama or a person of Panama from the seabed or subsoil outside the territorial waters of Panama, if Panama has rights to exploit such seabed or subsoil.
"(ii) Goods taken by the United States or a person of the United States from the seabed or subsoil outside the territorial waters of the United States, if the United States has rights to exploit such seabed or subsoil.
"(I) Goods taken from outer space, if the goods are obtained by Panama or the United States or a person of Panama or the United States and not processed in the territory of a country other than Panama or the United States.
"(J) Waste and scrap derived from—
"(i) manufacturing or processing operations in the territory of Panama, the United States, or both; or
"(ii) used goods collected in the territory of Panama, the United States, or both, if such goods are fit only for the recovery of raw materials.
"(K) Recovered goods derived in the territory of Panama, the United States, or both from used goods, and used in the territory of Panama, the United States, or both, in the production of remanufactured goods.
"(L) Goods, at any stage of production, produced in the territory of Panama, the United States, or both, exclusively from—
"(i) goods referred to in any of subparagraphs (A) through (J), or
"(ii) the derivatives of goods referred to in clause (i).
"(6)
"(7)
"(A) fuel and energy;
"(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 good that is not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production.
"(8)
"(9)
"(10)
"(11)
"(12)
"(13)
"(14)
"(15)
"(16)
"(17)
"(18)
"(19)
"(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.
"(20)
"(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 good that is new.
"(21)
"(22)
"(o)
"(1)
"(A) the provisions set forth in Annex 4.1 of the Agreement; and
"(B) any additional subordinate category that is necessary to carry out this title consistent with the Agreement.
"(2)
"(3)
"(A)
"(B)
"(4)
"(A)
"(B)
"(i)
"(ii)
"(C)
"(i)
"(ii)
"(I) the fabric, yarn, or fiber is available in commercial quantities in a timely manner in Panama or the United States; or
"(II) any interested entity objects to the request.
"(iii)
"(I) the fabric, yarn, or fiber is not available in commercial quantities in a timely manner in Panama and the United States; or
"(II) no interested entity has objected to the request.
"(iv)
"(I) not later than 30 days after the date on which a 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)
"(vi)
"(D)
"(i) 45 days after the date on which the request is submitted; or
"(ii) 60 days after the date on which the request is submitted, if the President made a determination under subparagraph (C)(iv)(II).
"(E)
"(i)
"(I) that has been added to that list in an unrestricted quantity pursuant to paragraph (2) or subparagraph (C)(iii) or (D) of this paragraph; or
"(II) with respect to which the President has eliminated a restriction under subparagraph (C)(vi).
"(ii)
"(iii)
"(iv)
"(F)
"(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.
[Amended
"SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.
"(a)
"(b)
"SEC. 206. RELIQUIDATION OF ENTRIES.
[Amended
"SEC. 207. RECORDKEEPING REQUIREMENTS.
[Amended
"SEC. 208. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL GOODS.
"(a)
"(1)
"(2)
"(A) an enterprise in Panama is complying with applicable customs laws, regulations, and procedures regarding trade in textile or apparel goods, or
"(B) a claim that a textile or apparel good exported or produced by such enterprise—
"(i) qualifies as an originating good under section 203, or
"(ii) is a good of Panama,
is accurate.
"(b)
"(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 of the Treasury determines that 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 that 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 that 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)
"(d)
"(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 of the Treasury determines that 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 that 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 that 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)
"(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, the textile or apparel goods that are the subject of a verification under subsection (a)(1).
"SEC. 209. 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(
"TITLE III—RELIEF FROM IMPORTS
"SEC. 301. DEFINITIONS.
"In this title:
"(1)
"(2)
"Subtitle A—Relief From Imports Benefitting From the Agreement
"SEC. 311. COMMENCING OF ACTION FOR RELIEF.
"(a)
"(b)
"(c)
"(1) Paragraphs (1)(B) and (3) of subsection (b).
"(2) Subsection (c).
"(3) Subsection (i).
"(d)
"SEC. 312. COMMISSION ACTION ON PETITION.
"(a)
"(b)
"(c)
"(1)
"(2)
"(3)
"(d)
"(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 referred to in paragraph (1) and any finding or recommendation referred to in paragraph (2).
"(e)
"SEC. 313. PROVISION OF RELIEF.
"(a)
"(b)
"(c)
"(1)
"(A) The suspension of any further reduction provided for under Annex 3.3 of the Agreement in the duty imposed on the article.
"(B) An increase in the rate of duty imposed on the 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 [Oct. 31, 2012].
"(2)
"(d)
"(1)
"(2)
"(A)
"(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)
"(i)
"(ii)
"(iii)
"(e)
"(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 such termination occurs shall be, at the discretion of the President, either—
"(A) the applicable rate of duty for that article set forth 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 forth in the Schedule of the United States to Annex 3.3 of the Agreement for the elimination of the tariff.
"(f)
"(1) any article that is subject to import relief under—
"(A) subtitle B; or
"(B)
"(2) any article on which an additional duty assessed under section 202(b) is in effect.
"SEC. 314. TERMINATION OF RELIEF AUTHORITY.
"(a)
"(b)
"SEC. 315. COMPENSATION AUTHORITY.
"For purposes of section 123 of the Trade Act of 1974 (
"SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
[Amended
"Subtitle B—Textile and Apparel Safeguard Measures
"SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.
"(a)
"(b)
"SEC. 322. DETERMINATION AND PROVISION OF RELIEF.
"(a)
"(1)
"(2)
"(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, no one of which is necessarily decisive; and
"(B) shall not consider changes in consumer preference or changes in technology as factors supporting a determination of serious damage or actual threat thereof.
"(3)
"(b)
"(1)
"(2)
"(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 [Oct. 31, 2012].
"SEC. 323. PERIOD OF RELIEF.
"(a)
"(b)
"(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 an 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—
"(A) subtitle A; or
"(B)
"SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
"On the date on which 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 [Oct. 31, 2012].
"SEC. 327. COMPENSATION AUTHORITY.
"For purposes of section 123 of the Trade Act of 1974 (
"SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.
"The President may not release information received in connection with an investigation or determination 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, the party 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 PANAMANIAN ARTICLES.
"(a)
"(b)
"TITLE IV—MISCELLANEOUS
"SEC. 401. ELIGIBLE PRODUCTS.
[Amended
"SEC. 402. MODIFICATION TO THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT.
"(a)
"(b)
"TITLE V—OFFSETS
"SEC. 501. EXTENSION OF CUSTOMS USER FEES.
[Amended
"SEC. 502. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
"Notwithstanding section 6655 of the Internal Revenue Code of 1986 [
"(1) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2012 shall be increased by 0.25 percent of such amount (determined without regard to any increase in such amount not contained in such Code);
"(2) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2016 shall be increased by 0.25 percent of such amount (determined without regard to any increase in such amount not contained in such Code); and
"(3) the amount of the next required installment after an installment referred to in paragraph (1) or (2) shall be appropriately reduced to reflect the amount of the increase by reason of such paragraph."
[Section 502 of
[The Harmonized Tariff Schedule of the United States is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
[Proc. No. 8894, Oct. 29, 2012, 77 F.R. 66507, 78 F.R. 2193, provided in par. (4) that the Secretary of Commerce is authorized to exercise the authority of the President under section 105(a) of the United States-Panama Trade Promotion Agreement Implementation Act (Implementation Act) (
United States–Colombia Trade Promotion Agreement Implementation Act
"SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
"(a)
"(b)
"SEC. 2. PURPOSES.
"The purposes of this Act are—
"(1) to approve and implement the free trade agreement between the United States and Colombia entered into under the authority of section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002 (
"(2) to strengthen and develop economic relations between the United States and Colombia for their mutual benefit;
"(3) to establish free trade between the United States and Colombia 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.
"In this Act:
"(1)
"(2)
"(3) HTS.—The term 'HTS' means the Harmonized Tariff Schedule of the United States.
"(4)
"TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
"SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
"(a)
"(1) the United States–Colombia Trade Promotion Agreement entered into on November 22, 2006, with the Government of Colombia, as amended on June 28, 2007, by the United States and Colombia, and submitted to Congress on October 3, 2011; and
"(2) the statement of administrative action proposed to implement the Agreement that was submitted to Congress on October 3, 2011.
"(b)
"SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.
"(a)
"(1)
"(2)
"(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)
"(1)
"(2)
"(A) any law of a political subdivision of a State; and
"(B) any State law regulating or taxing the business of insurance.
"(c)
"(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)
"(1)
"(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 on which the Agreement enters into force [May 15, 2012] is appropriately implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date on which the Agreement enters into force.
"(2)
"(3)
"(b)
"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 (
"(B) the Commission;
"(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 the committees referred to in paragraph (2) regarding the proposed action during the period referred to in paragraph (3).
"SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
"(a)
"(b)
"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
"SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
"(a)
"(b)
"(1)
"(2)
"(c)
"TITLE II—CUSTOMS PROVISIONS
"SEC. 201. TARIFF MODIFICATIONS.
"(a)
"(1)
"(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 2.3, 2.5, 2.6, and 3.3.13, and Annex 2.3, of the Agreement.
"(2)
"(3)
"(b)
"(1) such modifications or continuation of any duty,
"(2) such modifications as the United States may agree to with Colombia regarding the staging of any duty treatment set forth in Annex 2.3 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 with respect to Colombia provided for by the Agreement.
"(c)
"(d)
"SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.
"(a)
"(1)
"(A) the base rate in the Schedule of the United States to Annex 2.3 of the Agreement;
"(B) the column 1 general rate of duty that would, on the day before the date on which the Agreement enters into force [May 15, 2012], apply to a good classifiable in the same 8-digit subheading of the HTS as the safeguard good; or
"(C) 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.
"(2)
"(3)
"(A) that is included in the Schedule of the United States to Annex 2.18 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, or 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.
"(4)
"(5)
"(b)
"(1)
"(2)
"(A) in year 1 of the Agreement through year 4 of the Agreement, an amount equal to 100 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty;
"(B) in year 5 of the Agreement through year 7 of the Agreement, an amount equal to 75 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and
"(C) in year 8 of the Agreement through year 9 of the Agreement, an amount equal to 50 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty.
"(3)
"(c)
"(1) subtitle A of title III of this Act; or
"(2)
"(d)
"SEC. 203. RULES OF ORIGIN.
"(a)
"(1)
"(2)
"(3)
"(b)
"(1) the good is a good wholly obtained or produced entirely in the territory of Colombia, the United States, or both;
"(2) the good—
"(A) is produced entirely in the territory of Colombia, the United States, or both, and—
"(i) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in Annex 3-A or Annex 4.1 of the Agreement; or
"(ii) the good otherwise satisfies any applicable regional value-content or other requirements specified in Annex 3-A or 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 Colombia, the United States, or both, exclusively from materials described in paragraph (1) or (2).
"(c)
"(1)
"(2)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(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.
"(3)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(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)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(i)
"(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.
"(C)
"(i)
"(I) with respect to all motor vehicles in any one 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 the United States or Colombia.
"(ii)
"(I) is the same model line of motor vehicles, is in the same class of motor vehicles, and is produced in the same plant in the territory of Colombia or the United States, 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 Colombia or the United States, 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 Colombia or the United States as the good described in clause (i) for which regional value-content is being calculated.
"(D)
"(i) average the amounts calculated under the net cost 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) the fiscal year of the producer of such goods,
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 such goods that are exported to the territory of Colombia or the United States.
"(E)
"(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 these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or nonallowable interest costs.
"(d)
"(1)
"(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 (
"(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)
"(A)
"(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Colombia, the United States, or both, to the location of the producer.
"(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Colombia, the United States, or both, 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)
"(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Colombia, the United States, or both, to the location of the producer.
"(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Colombia, the United States, or both, 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 Colombia, the United States, or both.
"(e)
"(1)
"(2)
"(f)
"(1)
"(A)(i) 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 forth in Annex 4.1 of the Agreement),
does not exceed 10 percent of the adjusted value of the good;
"(ii) the good meets all other applicable requirements of this section; and
"(iii) the value of such nonoriginating materials is included in the value of nonoriginating materials for any applicable regional value-content requirement for the good; or
"(B) the good meets the requirements set forth in paragraph 2 of Annex 4.6 of the Agreement.
"(2)
"(A) A nonoriginating material provided for in
"(B) A nonoriginating material provided for in
"(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
"(F) 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.
"(G) A nonoriginating material provided for in
"(H) Except as provided in subparagraphs (A) through (G) 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.
"(I) A nonoriginating material that is a textile or apparel good.
"(3)
"(A)
"(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 (
"(B)
"(C)
"(g)
"(1)
"(A)
"(B)
"(i) averaging;
"(ii) 'last-in, first-out';
"(iii) 'first-in, first-out'; or
"(iv) any other method—
"(I) recognized in the generally accepted accounting principles of the country in which the production is performed (whether Colombia or the United States); or
"(II) otherwise accepted by that country.
"(2)
"(h)
"(1)
"(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 forth in Annex 4.1 of the Agreement.
"(2)
"(A) the accessories, spare parts, or tools are classified with and not invoiced separately from the good, regardless of whether such accessories, spare parts, or tools are specified or are 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)
"(i)
"(j)
"(k)
"(l)
"(1) undergoes further production or any other operation outside the territory of Colombia or the United States, 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 Colombia or the United States; or
"(2) does not remain under the control of customs authorities in the territory of a country other than Colombia or the United States.
"(m)
"(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 goods, other than textile or apparel goods, 15 percent of the adjusted value of the set.
"(n)
"(1)
"(2)
"(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.
"(3)
"(4)
"(A) means the recognized consensus or substantial authoritative support given in the territory of Colombia or the United States, as the case may be, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements; and
"(B) may encompass broad guidelines for general application as well as detailed standards, practices, and procedures.
"(5)
"(A) Plants and plant products harvested or gathered in the territory of Colombia, the United States, or both.
"(B) Live animals born and raised in the territory of Colombia, the United States, or both.
"(C) Goods obtained in the territory of Colombia, the United States, or both from live animals.
"(D) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of Colombia, the United States, or both.
"(E) Minerals and other natural resources not included in subparagraphs (A) through (D) that are extracted or taken from the territory of Colombia, the United States, or both.
"(F) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of Colombia or the United States by—
"(i) a vessel that is registered or recorded with Colombia and flying the flag of Colombia; or
"(ii) a vessel that is documented under the laws of the United States.
"(G) Goods produced on board a factory ship from goods referred to in subparagraph (F), if such factory ship—
"(i) is registered or recorded with Colombia and flies the flag of Colombia; or
"(ii) is a vessel that is documented under the laws of the United States.
"(H)(i) Goods taken by Colombia or a person of Colombia from the seabed or subsoil outside the territorial waters of Colombia, if Colombia has rights to exploit such seabed or subsoil.
"(ii) Goods taken by the United States or a person of the United States from the seabed or subsoil outside the territorial waters of the United States, if the United States has rights to exploit such seabed or subsoil.
"(I) Goods taken from outer space, if the goods are obtained by Colombia or the United States or a person of Colombia or the United States and not processed in the territory of a country other than Colombia or the United States.
"(J) Waste and scrap derived from—
"(i) manufacturing or processing operations in the territory of Colombia, the United States, or both; or
"(ii) used goods collected in the territory of Colombia, the United States, or both, if such goods are fit only for the recovery of raw materials.
"(K) Recovered goods derived in the territory of Colombia, the United States, or both, from used goods, and used in the territory of Colombia, the United States, or both, in the production of remanufactured goods.
"(L) Goods, at any stage of production, produced in the territory of Colombia, the United States, or both, exclusively from—
"(i) goods referred to in any of subparagraphs (A) through (J); or
"(ii) the derivatives of goods referred to in clause (i).
"(6)
"(7)
"(A) fuel and energy;
"(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 good that is not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production.
"(8)
"(9)
"(10)
"(11)
"(12)
"(13)
"(14)
"(15)
"(16)
"(17)
"(18)
"(19)
"(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.
"(20)
"(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 good that is new.
"(21)
"(A)
"(i) means all product costs, period costs, and other costs for a good incurred in the territory of Colombia, the United States, or both; and
"(ii) does not include profits that are earned by the producer, regardless of whether they are retained by the producer or paid out to other persons as dividends, or taxes paid on those profits, including capital gains taxes.
"(B)
"(i)
"(ii)
"(iii)
"(22)
"(o)
"(1)
"(A) the provisions set forth in Annex 3-A and Annex 4.1 of the Agreement; and
"(B) any additional subordinate category that is necessary to carry out this title consistent with the Agreement.
"(2)
"(3)
"(A)
"(B)
"(4)
"(A)
"(B)
"(i)
"(ii)
"(C)
"(i)
"(ii)
"(I) the fabric, yarn, or fiber is available in commercial quantities in a timely manner in Colombia or the United States; or
"(II) any interested entity objects to the request.
"(iii)
"(I) the fabric, yarn, or fiber is not available in commercial quantities in a timely manner in Colombia and the United States; or
"(II) no interested entity has objected to the request.
"(iv)
"(I) not later than 30 days after the date on which a 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)
"(vi)
"(D)
"(i) 45 days after the date on which the request is submitted; or
"(ii) 60 days after the date on which the request is submitted, if the President made a determination under subparagraph (C)(iv)(II).
"(E)
"(i)
"(I) that has been added to that list in an unrestricted quantity pursuant to paragraph (2) or subparagraph (C)(iii) or (D) of this paragraph; or
"(II) with respect to which the President has eliminated a restriction under subparagraph (C)(vi).
"(ii)
"(iii)
"(iv)
"(F)
"(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.
[Amended
"SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.
"(a)
"(b)
"SEC. 206. RELIQUIDATION OF ENTRIES.
[Amended
"SEC. 207. RECORDKEEPING REQUIREMENTS.
[Amended
"SEC. 208. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL GOODS.
"(a)
"(1)
"(2)
"(A) an exporter or producer in Colombia is complying with applicable customs laws, regulations, and procedures regarding trade in textile or apparel goods, or
"(B) 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, or
"(ii) is a good of Colombia,
is accurate.
"(b)
"(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 of the Treasury determines that 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 that 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 that 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)
"(d)
"(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 of the Treasury determines that 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 that 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 that 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)
"(1) is engaged in 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. 209. 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.
"In this title:
"(1)
"(2)
"Subtitle A—Relief From Imports Benefitting From the Agreement
"SEC. 311. COMMENCING OF ACTION FOR RELIEF.
"(a)
"(b)
"(c)
"(1) Paragraphs (1)(B) and (3) of subsection (b).
"(2) Subsection (c).
"(3) Subsection (i).
"(d)
"SEC. 312. COMMISSION ACTION ON PETITION.
"(a)
"(b)
"(c)
"(1)
"(2)
"(3)
"(d)
"(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 referred to in paragraph (1) and any finding or recommendation referred to in paragraph (2).
"(e)
"SEC. 313. PROVISION OF RELIEF.
"(a)
"(b)
"(c)
"(1)
"(A) The suspension of any further reduction provided for under Annex 2.3 of the Agreement in the duty imposed on the article.
"(B) An increase in the rate of duty imposed on the 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 [May 15, 2012].
"(2)
"(d)
"(1)
"(2)
"(A)
"(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)
"(i)
"(ii)
"(iii)
"(C)
"(e)
"(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 2.3 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 such termination occurs shall be, at the discretion of the President, either—
"(A) the applicable rate of duty for that article set forth in the Schedule of the United States to Annex 2.3 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 forth in the Schedule of the United States to Annex 2.3 of the Agreement for the elimination of the tariff.
"(f)
"(1) any article that is subject to import relief under—
"(A) subtitle B; or
"(B)
"(2) any article on which an additional duty assessed under section 202(b) is in effect.
"SEC. 314. TERMINATION OF RELIEF AUTHORITY.
"(a)
"(b)
"SEC. 315. COMPENSATION AUTHORITY.
"For purposes of section 123 of the Trade Act of 1974 (
"SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
[Amended
"Subtitle B—Textile and Apparel Safeguard Measures
"SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.
"(a)
"(b)
"SEC. 322. DETERMINATION AND PROVISION OF RELIEF.
"(a)
"(1)
"(2)
"(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 losses, and investment, no one of which is necessarily decisive; and
"(B) shall not consider changes in consumer preference or changes in technology in the United States as factors supporting a determination of serious damage or actual threat thereof.
"(b)
"(1)
"(2)
"(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 [May 15, 2012].
"SEC. 323. PERIOD OF RELIEF.
"(a)
"(b)
"(1)
"(A) 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
"(B) there is evidence that the industry is making a positive adjustment to import competition.
"(2)
"SEC. 324. ARTICLES EXEMPT FROM RELIEF.
"The President may not provide import relief under this subtitle with respect to an 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—
"(A) subtitle A; or
"(B)
"SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
"On the date on which 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 [May 15, 2012].
"SEC. 327. COMPENSATION AUTHORITY.
"For purposes of section 123 of the Trade Act of 1974 (
"SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.
"The President may not release information received in connection with an investigation or determination 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, the party 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 COLOMBIAN ARTICLES.
"(a)
"(b)
"TITLE IV—PROCUREMENT
"SEC. 401. ELIGIBLE PRODUCTS.
[Amended
"TITLE V—EXTENSION OF ANDEAN TRADE PREFERENCE ACT
"SEC. 501. EXTENSION OF ANDEAN TRADE PREFERENCE ACT.
"(a)
"(b)
"(c)
"(1)
"(2)
"(A)
"(i) after February 12, 2011, and
"(ii) before the 15th day after the date of the enactment of this Act,
shall be liquidated or reliquidated as though such entry occurred on the date that is 15 days after the date of the enactment of this Act.
"(B)
"(i) to locate the entry; or
"(ii) to reconstruct the entry if it cannot be located.
"(C)
"(3)
"TITLE VI—OFFSETS
"SEC. 601. ELIMINATION OF CERTAIN NAFTA CUSTOMS FEES EXEMPTION.
"(a)
"(b)
"(c)
"SEC. 602. EXTENSION OF CUSTOMS USER FEES.
[Amended
"SEC. 603. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
"Notwithstanding section 6655 of the Internal Revenue Code of 1986 [
"(1) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2016 shall be increased by 0.50 percent of such amount (determined without regard to any increase in such amount not contained in such Code); and
"(2) the amount of the next required installment after an installment referred to in paragraph (1) shall be appropriately reduced to reflect the amount of the increase by reason of such paragraph."
[Section 603 of
[Proc. No. 8818, May 14, 2012, 77 F.R. 29519, provided in par. (6) that the Secretary of Commerce is authorized to exercise the authority of the President under section 105(a) of the United States-Colombia Trade Promotion Agreement Implementation Act (Implementation Act) (
United States–Korea Free Trade Agreement Implementation Act
"SECTION 1. SHORT TITLE.
"(a)
"(b)
"SEC. 2. PURPOSES.
"The purposes of this Act are—
"(1) to approve and implement the free trade agreement between the United States and Korea entered into under the authority of section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002 (
"(2) to secure the benefits of the agreement entered into pursuant to an exchange of letters between the United States and the Government of Korea on February 10, 2011;
"(3) to strengthen and develop economic relations between the United States and Korea for their mutual benefit;
"(4) to establish free trade between the United States and Korea through the reduction and elimination of barriers to trade in goods and services and to investment; and
"(5) to lay the foundation for further cooperation to expand and enhance the benefits of the Agreement.
"SEC. 3. DEFINITIONS.
"In this Act:
"(1)
"(2)
"(3)
"(4)
"(5)
"TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
"SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
"(a)
"(1) the United States–Korea Free Trade Agreement entered into on June 30, 2007, with the Government of Korea, and submitted to Congress on October 3, 2011; and
"(2) the statement of administrative action proposed to implement the Agreement that was submitted to Congress on October 3, 2011.
"(b)
"SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.
"(a)
"(1)
"(2)
"(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)
"(1)
"(2)
"(A) any law of a political subdivision of a State; and
"(B) any State law regulating or taxing the business of insurance.
"(c)
"(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)
"(1)
"(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 on which the Agreement enters into force [Mar. 15, 2012] is appropriately implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date on which the Agreement enters into force.
"(2)
"(3)
"(b)
"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 (
"(B) the Commission;
"(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 the committees referred to in paragraph (2) regarding the proposed action during the period referred to in paragraph (3).
"SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
"(a)
"(b)
"SEC. 106. ARBITRATION OF CLAIMS.
"The United States is authorized to resolve any claim against the United States covered by article 11.16.1(a)(i)(C) or article 11.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State Dispute Settlement procedures set forth in section B of
"SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
"(a)
"(b)
"(1)
"(2)
"(c)
"TITLE II—CUSTOMS PROVISIONS
"SEC. 201. TARIFF MODIFICATIONS.
"(a)
"(1) such modifications or continuation of any duty,
"(2) such continuation of duty-free or excise treatment, or
"(3) such additional duties,
as the President determines to be necessary or appropriate to carry out or apply articles 2.3, 2.5, and 2.6, and Annex 2-B, Annex 4-B, and Annex 22-A, of the Agreement.
"(b)
"(1) such modifications or continuation of any duty,
"(2) such modifications as the United States may agree to with Korea regarding the staging of any duty treatment set forth in Annex 2-B 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 with respect to Korea provided for by the Agreement.
"(c)
"(d)
"(1)
"(A) the rate of duty for such goods shall be 2.5 percent for year 1 of the Agreement through year 4 of the Agreement; and
"(B) such goods shall be free of duty for each year thereafter.
"(2)
"(A) the rate of duty for such goods shall be—
"(i) 2.0 percent for year 1 of the Agreement;
"(ii) 1.5 percent for year 2 of the Agreement;
"(iii) 1.0 percent for year 3 of the Agreement; and
"(iv) 0.5 percent for year 4 of the Agreement; and
"(B) such goods shall be free of duty for each year thereafter.
"(3)
"(A) the rate of duty for such goods shall be—
"(i) 25 percent for year 1 of the Agreement through year 7 of the Agreement;
"(ii) 16.6 percent for year 8 of the Agreement; and
"(iii) 8.3 percent for year 9 of the Agreement; and
"(B) such goods shall be free of duty for each year thereafter.
"(4)
"(A) the term 'year 1 of the Agreement' means the period beginning on the date, in a calendar year, on which the Agreement enters into force [Mar. 15, 2012] and ending on December 31 of that calendar year; and
"(B) the terms 'year 2 of the Agreement', 'year 3 of the Agreement', 'year 4 of the Agreement', 'year 5 of the Agreement', 'year 6 of the Agreement', 'year 7 of the Agreement', 'year 8 of the Agreement', and 'year 9 of the Agreement' mean the second, third, fourth, fifth, sixth, seventh, eighth, and ninth calendar years, respectively, in which the Agreement is in force.
"SEC. 202. RULES OF ORIGIN.
"(a)
"(1)
"(2)
"(3)
"(b)
"(1) the good is a good wholly obtained or produced entirely in the territory of Korea, the United States, or both;
"(2) the good—
"(A) is produced entirely in the territory of Korea, the United States, or both, 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-A or Annex 6-A of the Agreement; or
"(ii) the good otherwise satisfies any applicable regional value-content or other requirements specified in Annex 4-A or Annex 6-A of the Agreement; and
"(B) satisfies all other applicable requirements of this section; or
"(3) the good is produced entirely in the territory of Korea, the United States, or both, exclusively from materials described in paragraph (1) or (2).
"(c)
"(1)
"(2)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(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, other than indirect 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.
"(3)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(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, other than indirect materials, that are acquired or self-produced, and used by the producer in the production of the good.
"(4)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(i)
"(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, other than indirect 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.
"(C)
"(i)
"(I) with respect to all motor vehicles in any one 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 Korea or the United States.
"(ii)
"(I) is the same model line of motor vehicles, is in the same class of motor vehicles, and is produced in the same plant in the territory of Korea or the United States, 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 Korea or the United States, 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 Korea or the United States as the good described in clause (i) for which regional value-content is being calculated.
"(D)
"(i) average the amounts calculated under the net cost 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) the fiscal year of the producer of such goods,
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 such goods that are exported to the territory of Korea or the United States.
"(E)
"(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 these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or nonallowable interest costs.
"(d)
"(1)
"(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 (
"(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)
"(A)
"(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Korea, the United States, or both, to the location of the producer.
"(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Korea, the United States, or both, 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)
"(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Korea, the United States, or both, to the location of the producer.
"(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Korea, the United States, or both, 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 Korea, the United States, or both.
"(e)
"(1)
"(2)
"(f)
"(1)
"(A) the value of all nonoriginating materials used in the production of the good that do not undergo the applicable change in tariff classification (set forth in Annex 6-A 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)
"(A) A nonoriginating material provided for in
"(B) A nonoriginating material provided for in
"(C) A nonoriginating material provided for in
"(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.
"(D) A nonoriginating material provided for in
"(E) A nonoriginating material provided for in heading 1006, or a nonoriginating rice product provided for in
"(F) 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.
"(G) Nonoriginating peaches, pears, or apricots provided for in
"(H) A nonoriginating material provided for in
"(I) 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.
"(J) A nonoriginating material provided for in
"(K) Except as provided in subparagraphs (A) through (J) and Annex 6-A 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)
"(A)
"(B)
"(C)
"(g)
"(1)
"(A)
"(B)
"(i) averaging;
"(ii) 'last-in, first-out';
"(iii) 'first-in, first-out'; or
"(iv) any other method—
"(I) recognized in the generally accepted accounting principles of the country in which the production is performed (whether Korea or the United States); or
"(II) otherwise accepted by that country.
"(2)
"(h)
"(1)
"(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 forth in Annex 6-A of the Agreement.
"(2)
"(A) the accessories, spare parts, or tools are classified with and not invoiced separately from the good; and
"(B) the quantities and value of the accessories, spare parts, or tools are customary for the good.
"(3)
"(i)
"(j)
"(k)
"(l)
"(1) undergoes further production or any other operation outside the territory of Korea or the United States, 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 Korea or the United States; or
"(2) does not remain under the control of customs authorities in the territory of a country other than Korea or the United States.
"(m)
"(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 goods, other than textile or apparel goods, 15 percent of the adjusted value of the set.
"(n)
"(1)
"(2)
"(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.
"(3)
"(4)
"(A) means the recognized consensus or substantial authoritative support given in the territory of Korea or the United States, as the case may be, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements; and
"(B) may encompass broad guidelines for general application as well as detailed standards, practices, and procedures.
"(5)
"(A) Plants and plant products grown, and harvested or gathered, in the territory of Korea, the United States, or both.
"(B) Live animals born and raised in the territory of Korea, the United States, or both.
"(C) Goods obtained in the territory of Korea, the United States, or both from live animals.
"(D) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of Korea, the United States, or both.
"(E) Minerals and other natural resources not included in subparagraphs (A) through (D) that are extracted or taken from the territory of Korea, the United States, or both.
"(F) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of Korea or the United States by—
"(i) a vessel that is registered or recorded with Korea and flying the flag of Korea; or
"(ii) a vessel that is documented under the laws of the United States.
"(G) Goods produced on board a factory ship from goods referred to in subparagraph (F), if such factory ship—
"(i) is registered or recorded with Korea and flies the flag of Korea; or
"(ii) is a vessel that is documented under the laws of the United States.
"(H)(i) Goods taken by Korea or a person of Korea from the seabed or subsoil outside the territory of Korea, the United States, or both, if Korea has rights to exploit such seabed or subsoil; or
"(ii) Goods taken by the United States or a person of the United States from the seabed or subsoil outside the territory of the United States, Korea, or both, if the United States has rights to exploit such seabed or subsoil.
"(I) Goods taken from outer space, if the goods are obtained by Korea or the United States or a person of Korea or the United States and not processed in the territory of a country other than Korea or the United States.
"(J) Waste and scrap derived from—
"(i) manufacturing or processing operations in the territory of Korea, the United States, or both; or
"(ii) used goods collected in the territory of Korea, the United States, or both, if such goods are fit only for the recovery of raw materials.
"(K) Recovered goods derived in the territory of Korea, the United States, or both, from used goods, and used in the territory of Korea, the United States, or both, in the production of remanufactured goods.
"(L) Goods, at any stage of production, produced in the territory of Korea, the United States, or both, exclusively from—
"(i) goods referred to in any of subparagraphs (A) through (J); or
"(ii) the derivatives of goods referred to in clause (i).
"(6)
"(7)
"(A) fuel and energy;
"(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 good that is not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production.
"(8)
"(9)
"(10)
"(11)
"(12)
"(13)
"(14)
"(15)
"(16)
"(17)
"(18)
"(19)
"(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.
"(20)
"(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 good that is new.
"(21)
"(A)
"(i) means all product costs, period costs, and other costs for a good incurred in the territory of Korea, the United States, or both; and
"(ii) does not include profits that are earned by the producer, regardless of whether they are retained by the producer or paid out to other persons as dividends, or taxes paid on those profits, including capital gains taxes.
"(B)
"(i)
"(ii)
"(iii)
"(22)
"(o)
"(1)
"(A) the provisions set forth in Annex 4-A and Annex 6-A of the Agreement; and
"(B) any additional subordinate category that is necessary to carry out this title consistent with the Agreement.
"(2)
"(A)
"(B)
"(i) such modifications to the provisions proclaimed under the authority of paragraph (1)(A) as are necessary to implement an agreement with Korea pursuant to article 4.2.5 of the Agreement; and
"(ii) before the end of the 1-year period beginning on the date on which the Agreement enters into force [Mar. 15, 2012], modifications to correct any typographical, clerical, or other nonsubstantive technical error regarding the provisions of chapters 50 through 63 (as included in Annex 4-A of the Agreement).
"(3)
"(A)
"(B)
"(i)
"(ii)
"(C)
"(i)
"(ii)
"(I) the fiber, yarn, or fabric is available in commercial quantities in a timely manner in the United States; or
"(II) any interested entity objects to the request.
"(iii)
"(I) the fiber, yarn, or fabric is not available in commercial quantities in a timely manner in the United States; or
"(II) no interested entity has objected to the request.
"(iv)
"(I) not later than 30 days after the date on which a request is submitted under clause (i); or
"(II) not later than 60 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)
"(D)
"(E)
"(i)
"(ii)
"(iii)
"(F)
"(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 (E)(ii).
"SEC. 203. CUSTOMS USER FEES.
[Amended
"SEC. 204. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.
"(a)
"(b)
"SEC. 205. RELIQUIDATION OF ENTRIES.
[Amended
"SEC. 206. RECORDKEEPING REQUIREMENTS.
[Amended
"SEC. 207. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL GOODS.
"(a)
"(1)
"(2)
"(A) an exporter or producer in Korea is complying with applicable customs laws, regulations, procedures, requirements, and practices affecting trade in textile or apparel goods; or
"(B) a claim that a textile or apparel good exported or produced by such exporter or producer—
"(i) qualifies as an originating good under section 202, or
"(ii) is a good of Korea,
is accurate.
"(b)
"(1) suspension of liquidation of the entry 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), in a case in which the request for verification was based on a reasonable suspicion of unlawful activity related to such goods; and
"(2) suspension of liquidation of the entry of a textile or apparel good for which a claim has been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection (a)(2)(B).
"(c)
"(d)
"(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); or
"(B) the textile or apparel good for which a claim has been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection (a)(2)(B); and
"(2) denial of entry into the United States of—
"(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); or
"(B) a textile or apparel good for which a claim has been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection (a)(2)(B).
"(e)
"(1) is engaged in 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.
"(f)
"(g)
"(1) a claim of origin under the agreement for a textile or apparel good is accurate; or
"(2) an exporter, producer, or other enterprise located in the United States involved in the movement of textile or apparel goods from the United States to the territory of the requesting government is complying with applicable customs laws, regulations, and procedures regarding trade in textile or apparel goods.
"SEC. 208. REGULATIONS.
"The Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out—
"(1) subsections (a) through (n) of section 202;
"(2) the amendment made by section 203; and
"(3) any proclamation issued under section 202(o).
"TITLE III—RELIEF FROM IMPORTS
"SEC. 301. DEFINITIONS.
"In this title:
"(1)
"(2)
"(3)
"Subtitle A—Relief From Imports Benefitting From the Agreement
"SEC. 311. COMMENCING OF ACTION FOR RELIEF.
"(a)
"(1)
"(2)
"(3)
"(b)
"(c)
"(1) Paragraphs (1)(B) and (3) of subsection (b).
"(2) Subsection (c).
"(3) Subsection (d).
"(4) Subsection (i).
"(d)
"SEC. 312. COMMISSION ACTION ON PETITION.
"(a)
"(b)
"(c)
"(1)
"(2)
"(3)
"(d)
"(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 referred to in paragraph (1) and any finding or recommendation referred to in paragraph (2).
"(e)
"SEC. 313. PROVISION OF RELIEF.
"(a)
"(b)
"(c)
"(1)
"(A) The suspension of any further reduction provided for under Annex 2-B of the Agreement in the duty imposed on the article.
"(B) An increase in the rate of duty imposed on the 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 [Mar. 15, 2012].
"(2)
"(A) The suspension of any further reduction provided for under Annex 2-B of the Agreement in the duty imposed on the article.
"(B) An increase in the rate of duty imposed on the 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 for the corresponding season immediately preceding the date the import relief is provided; or
"(ii) the column 1 general rate of duty imposed under the HTS for the corresponding season immediately preceding the date on which the Agreement enters into force.
"(3)
"(d)
"(1)
"(2)
"(A)
"(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)
"(i)
"(ii)
"(iii)
"(C)
"(e)
"(f)
"(1) subtitle B or C; or
"(2)
"SEC. 314. TERMINATION OF RELIEF AUTHORITY.
"(a)
"(b)
"(c)
"SEC. 315. COMPENSATION AUTHORITY.
"For purposes of section 123 of the Trade Act of 1974 (
"SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
[Amended
"Subtitle B—Motor Vehicle Safeguard Measures
"SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES.
"The provisions of subtitle A shall apply with respect to a Korean motor vehicle article to the same extent that such provisions apply to Korean articles, except as follows:
"(1) Section 311(d) and paragraphs (2) and (3) of 313(c) shall not apply.
"(2) Section 313(d)(2)(A) shall be applied and administered by substituting '2 years' for '1 year'.
"(3) Section 313(d)(2)(C) shall be applied and administered by substituting '4 years' for '3 years'.
"(4) Section 313(f)(1) shall be applied and administered by substituting 'subtitle A' for 'subtitle B or C'.
"(5) Section 314(b) shall be applied and administered as if such section read as follows:
"(b)
"Subtitle C—Textile and Apparel Safeguard Measures
"SEC. 331. COMMENCEMENT OF ACTION FOR RELIEF.
"(a)
"(b)
"SEC. 332. DETERMINATION AND PROVISION OF RELIEF.
"(a)
"(1)
"(2)
"(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, no one 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.
"(b)
"(1)
"(2)
"(A) the suspension of any further reduction provided for under Annex 2-B of the Agreement in the duty imposed on the article; or
"(B) an increase in the rate of duty imposed on the 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 [Mar. 15, 2012].
"SEC. 333. PERIOD OF RELIEF.
"(a)
"(b)
"(1)
"(A) 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
"(B) there is evidence that the industry is making a positive adjustment to import competition.
"(2)
"SEC. 334. ARTICLES EXEMPT FROM RELIEF.
"The President may not provide import relief under this subtitle with respect to an 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—
"(A) subtitle A; or
"(B)
"SEC. 335. RATE AFTER TERMINATION OF IMPORT RELIEF.
"On the date on which 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. 336. TERMINATION OF RELIEF AUTHORITY.
"No import relief may be provided under this subtitle with respect to any article after the date that is 10 years after the date on which duties on the article are eliminated pursuant to the Agreement.
"SEC. 337. COMPENSATION AUTHORITY.
"For purposes of section 123 of the Trade Act of 1974 (
"SEC. 338. CONFIDENTIAL BUSINESS INFORMATION.
"The President may not release information received in connection with an investigation or determination 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, the party shall also provide a nonconfidential version of the information in which the confidential business information is summarized or, if necessary, deleted.
"Subtitle D—Cases Under Title II of the Trade Act of 1974
"SEC. 341. FINDINGS AND ACTION ON KOREAN ARTICLES.
"(a)
"(b)
"TITLE IV—PROCUREMENT
"SEC. 401. ELIGIBLE PRODUCTS.
[Amended
"TITLE V—OFFSETS
"SEC. 501. INCREASE IN PENALTY ON PAID PREPARERS WHO FAIL TO COMPLY WITH EARNED INCOME TAX CREDIT DUE DILIGENCE REQUIREMENTS.
"(a)
"(b)
"SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE UNITED STATES TO PROVIDE INFORMATION FOR TAX ADMINISTRATION.
"(a)
"(b)
"SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES.
"For the period beginning on December 1, 2015, and ending on October 21, 2029, section 13031(a)(9) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (
"(1) in subparagraph (A), by substituting '0.3464' for '0.21'; and
"(2) in subparagraph (B)(i), by substituting '0.3464' for '0.21'.
"SEC. 504. EXTENSION OF CUSTOMS USER FEES.
[Amended
"SEC. 505. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
"Notwithstanding section 6655 of the Internal Revenue Code of 1986 [
"(1) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2012 shall be increased by 0.25 percent of such amount (determined without regard to any increase in such amount not contained in such Code);
"(2) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2016 shall be increased by 2.75 percent of such amount (determined without regard to any increase in such amount not contained in such Code); and
"(3) the amount of the next required installment after an installment referred to in paragraph (1) or (2) shall be appropriately reduced to reflect the amount of the increase by reason of such paragraph."
[
[Section 505 of
[The Harmonized Tariff Schedule of the United States is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
[Proc. No. 8783, Mar. 6, 2012, 77 F.R. 14265, provided in par. (4) that the Secretary of Commerce is authorized to exercise the authority of the President under section 105(a) of the United States–Korea Free Trade Agreement Implementation Act (Implementation Act) (
United States-Peru Trade Promotion Agreement Implementation Act
"SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
"(a)
"(b)
"SEC. 2. PURPOSES.
"The purposes of this Act are—
"(1) to approve and implement the free trade agreement between the United States and Peru entered into under the authority of section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002 (
"(2) to strengthen and develop economic relations between the United States and Peru for their mutual benefit;
"(3) to establish free trade between the United States and Peru 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.
"In this Act:
"(1)
"(2)
"(3) HTS.—The term 'HTS' means the Harmonized Tariff Schedule of the United States.
"(4)
"TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
"SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
"(a)
"(1) the United States-Peru Trade Promotion Agreement entered into on April 12, 2006, with the Government of Peru, as amended on June 24 and June 25, 2007, respectively, by the United States and Peru, and submitted to Congress on September 27, 2007; and
"(2) the statement of administrative action proposed to implement the Agreement that was submitted to Congress on September 27, 2007.
"(b)
"SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.
"(a)
"(1)
"(2)
"(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)
"(1)
"(2)
"(A) any law of a political subdivision of a State; and
"(B) any State law regulating or taxing the business of insurance.
"(c)
"(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)
"(1)
"(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 on which the Agreement enters into force [Feb. 1, 2009] is appropriately implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date on which the Agreement enters into force.
"(2)
"(3)
"(b)
"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 (
"(B) the Commission;
"(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 the committees referred to in paragraph (2) regarding the proposed action during the period referred to in paragraph (3).
"SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
"(a)
"(b)
"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
"SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
"(a)
"(b)
"(c)
"TITLE II—CUSTOMS PROVISIONS
"SEC. 201. TARIFF MODIFICATIONS.
"(a)
"(1)
"(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 2.3, 2.5, 2.6, 3.3.13, and Annex 2.3 of the Agreement.
"(2)
"(b)
"(1) such modifications or continuation of any duty,
"(2) such modifications as the United States may agree to with Peru regarding the staging of any duty treatment set forth in Annex 2.3 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 with respect to Peru provided for by the Agreement.
"(c)
"(d)
"SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.
"(a)
"(1)
"(A) the base rate in the Schedule of the United States to Annex 2.3 of the Agreement;
"(B) the column 1 general rate of duty that would, on the day before the date on which the Agreement enters into force [Feb. 1, 2009], apply to a good classifiable in the same 8-digit subheading of the HTS as the safeguard good; or
"(C) 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.
"(2)
"(3)
"(A) that is included in the Schedule of the United States to Annex 2.18 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.
"(b)
"(1)
"(2)
"(A) in years 1 through 12, an amount equal to 100 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty; and
"(B) in years 13 through 16, an amount equal to 50 percent of the excess of the applicable NTR (MFN) rate of duty over the schedule rate of duty.
"(3)
"(c)
"(1) subtitle A of title III of this Act; or
"(2)
"(d)
"SEC. 203. RULES OF ORIGIN.
"(a)
"(1)
"(2)
"(3)
"(b)
"(1) the good is a good wholly obtained or produced entirely in the territory of Peru, the United States, or both;
"(2) the good—
"(A) is produced entirely in the territory of Peru, the United States, or both, and—
"(i) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in Annex 3–A or Annex 4.1 of the Agreement; or
"(ii) the good otherwise satisfies any applicable regional value-content or other requirements specified in Annex 3–A or 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 Peru, the United States, or both, exclusively from materials described in paragraph (1) or (2).
"(c)
"(1)
"(2)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(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.
"(3)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(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)
"(A)
| = | × | 100 | ||||
|---|---|---|---|---|---|---|
"(B)
"(i)
"(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.
"(C)
"(i)
"(I) with respect to all motor vehicles in any one 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 the United States or Peru.
"(ii)
"(I) is the same model line of motor vehicles, is in the same class of motor vehicles, and is produced in the same plant in the territory of Peru or the United States, 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 Peru or the United States, 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 Peru or the United States as the good described in clause (i) for which regional value-content is being calculated.
"(D)
"(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) the fiscal year of the producer of such goods,
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 such goods that are exported to the territory of Peru or the United States.
"(E)
"(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 these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or nonallowable interest costs.
"(d)
"(1)