[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2738 Enrolled Bill (ENR)]
H.R.2738
One Hundred Eighth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
An Act
To implement the United States-Chile Free Trade Agreement.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``United States-
Chile Free Trade Agreement Implementation Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the agreement to United States and State law.
Sec. 103. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 104. Implementing actions in anticipation of entry into force and
initial regulations.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.
TITLE II--CUSTOMS PROVISIONS
Sec. 201. Tariff modifications.
Sec. 202. Rules of origin.
Sec. 203. Drawback.
Sec. 204. Customs user fees.
Sec. 205. Disclosure of incorrect information; denial of preferential
tariff treatment; false certificates of origin.
Sec. 206. Reliquidation of entries.
Sec. 207. Recordkeeping requirements.
Sec. 208. Enforcement of textile and apparel rules of origin.
Sec. 209. Conforming amendments.
Sec. 210. Regulations.
TITLE III--RELIEF FROM IMPORTS
Sec. 301. Definitions.
Subtitle A--Relief From Imports Benefiting From the Agreement
Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.
Subtitle B--Textile and Apparel Safeguard Measures
Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Business confidential information.
TITLE IV--TEMPORARY ENTRY OF BUSINESS PERSONS
Sec. 401. Nonimmigrant traders and investors.
Sec. 402. Nonimmigrant professionals; labor attestation.
Sec. 403. Labor disputes.
Sec. 404. Conforming amendments.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to approve and implement the Free Trade Agreement between
the United States and the Republic of Chile 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 Chile for their mutual benefit;
(3) to establish free trade between the 2 nations 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 such Agreement.
SEC. 3. DEFINITIONS.
In this Act:
(1) Agreement.--The term ``Agreement'' means the United States-
Chile Free Trade Agreement approved by the Congress under section
101(a)(1).
(2) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule
of the United States.
(3) Textile or apparel good.--The term ``textile or apparel
good'' means a good listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
(a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority
Act of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974
(19 U.S.C. 2191), the Congress approves--
(1) the United States-Chile Free Trade Agreement entered into
on June 6, 2003, with the Government of Chile and submitted to the
Congress on July 15, 2003; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to the Congress on July
15, 2003.
(b) Conditions for Entry Into Force of the Agreement.--At such time
as the President determines that Chile has taken measures necessary to
bring it into compliance with the provisions of the Agreement that take
effect on the date on which the Agreement enters into force, the
President is authorized to exchange notes with the Government of Chile
providing for the entry into force, on or after January 1, 2004, of the
Agreement for the United States.
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.
(a) Relationship to United States Law.--
(1) United states law to prevail in conflict.--No provision of
the Agreement, nor the application of any such provision to any
person or circumstance, which is inconsistent with any law of the
United States shall have effect.
(2) Construction.--Nothing in this Act shall be construed--
(A) to amend or modify any law of the United States, or
(B) to limit any authority conferred under any law of the
United States,
unless specifically provided for in this Act.
(b) Relationship of Agreement to State Law.--
(1) Legal challenge.--No State law, or the application thereof,
may be declared invalid as to any person or circumstance on the
ground that the provision or application is inconsistent with the
Agreement, except in an action brought by the United States for the
purpose of declaring such law or application invalid.
(2) Definition of state law.--For purposes of this subsection,
the term ``State law'' includes--
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business of
insurance.
(c) Effect of Agreement With Respect to Private Remedies.--No
person other than the United States--
(1) shall have any cause of action or defense under the
Agreement or by virtue of Congressional approval thereof; or
(2) may challenge, in any action brought under any provision of
law, any action or inaction by any department, agency, or other
instrumentality of the United States, any State, or any political
subdivision of a State on the ground that such action or inaction
is inconsistent with the Agreement.
SEC. 103. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE
OF, PROCLAIMED ACTIONS.
(a) Consultation and Layover Requirements.--If a provision of this
Act provides that the implementation of an action by the President by
proclamation is subject to the consultation and layover requirements of
this section, such action may be proclaimed only if--
(1) the President has obtained advice regarding the proposed
action from--
(A) the appropriate advisory committees established under
section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
(B) the United States International Trade Commission;
(2) the President has submitted a report to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate that sets forth--
(A) the action proposed to be proclaimed and the reasons
therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first day on
which the requirements set forth in paragraphs (1) and (2) have
been met has expired; and
(4) the President has consulted with such Committees regarding
the proposed action during the period referred to in paragraph (3).
(b) Effective Date of Certain Proclaimed Actions.--Any action
proclaimed by the President under the authority of this Act that is not
subject to the consultation and layover provisions under subsection (a)
may not take effect before the 15th day after the date on which the
text of the proclamation is published in the Federal Register.
SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND
INITIAL REGULATIONS.
(a) Implementing Actions.--
(1) Proclamation authority.--After the date of enactment of
this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations,
as may be necessary to ensure that any provision of this Act, or
amendment made by this Act, that takes effect on the date the
Agreement enters into force is appropriately implemented on such
date, but no such proclamation or regulation may have an effective
date earlier than the date of entry into force.
(2) Waiver of 15-day restriction.--The 15-day restriction
contained in section 103(b) on the taking effect of proclaimed
actions is waived to the extent that the application of such
restriction would prevent the taking effect on the date the
Agreement enters into force of any action proclaimed under this
section.
(b) Initial Regulations.--Initial regulations necessary or
appropriate to carry out the actions required by or authorized under
this Act or proposed in the statement of administrative action referred
to in section 101(a)(2) to implement the Agreement shall, to the
maximum extent feasible, be issued within 1 year after the date of
entry into force of the Agreement. In the case of any implementing
action that takes effect on a date after the date of entry into force
of the Agreement, initial regulations to carry out that action shall,
to the maximum extent feasible, be issued within 1 year after such
effective date.
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
(a) Establishment or Designation of Office.--The President is
authorized to establish or designate within the Department of Commerce
an office that shall be responsible for providing administrative
assistance to panels established under chapter 22 of the Agreement. The
office may not be considered to be an agency for purposes of section
552 of title 5, United States Code.
(b) Authorization of Appropriations.--There are authorized to be
appropriated for each fiscal year after fiscal year 2003 to the
Department of Commerce such sums as may be necessary for the
establishment and operations of the office under subsection (a) and for
the payment of the United States share of the expenses of panels
established under chapter 22 of the Agreement.
SEC. 106. ARBITRATION OF CLAIMS.
(a) Submission of Certain Claims.--The United States is authorized
to resolve any claim against the United States covered by article
10.15(1)(a)(i)(C) or 10.15(1)(b)(i)(C) of the Agreement, pursuant to
the Investor-State Dispute Settlement procedures set forth in section B
of chapter 10 of the Agreement.
(b) Contract Clauses.--All contracts executed by any agency of the
United States on or after the date of entry into force of the Agreement
shall contain a clause specifying the law that will apply to resolve
any breach of contract claim.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
(a) Effective Dates.--Except as provided in subsection (b), the
provisions of this Act and the amendments made by this Act take effect
on the date the Agreement enters into force.
(b) Exceptions.--Sections 1 through 3 and this title take effect on
the date of the enactment of this Act.
(c) Termination of the Agreement.--On the date on which the
Agreement ceases to be in force, the provisions of this Act (other than
this subsection) and the amendments made by this Act shall cease to be
effective.
TITLE II--CUSTOMS PROVISIONS
SEC. 201. TARIFF MODIFICATIONS.
(a) Tariff Modifications Provided for in the Agreement.--
(1) Proclamation authority.--The President may proclaim--
(A) such modifications or continuation of any duty,
(B) such continuation of duty-free or excise treatment, or
(C) such additional duties,
as the President determines to be necessary or appropriate to carry
out or apply articles 3.3, 3.7, 3.9, article 3.20 (8), (9), (10),
and (11), and Annex 3.3 of the Agreement.
(2) Effect on chilean gsp status.--Notwithstanding section
502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the
President shall terminate the designation of Chile as a beneficiary
developing country for purposes of title V of the Trade Act of 1974
on the date of entry into force of the Agreement.
(b) Other Tariff Modifications.--Subject to the consultation and
layover provisions of section 103(a), the President may proclaim--
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree to with
Chile 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 Chile provided for by the Agreement.
(c) Additional Tariffs on Agricultural Safeguard Goods.--
(1) In general.--In addition to any duty proclaimed under
subsection (a) or (b), and subject to paragraphs (3) through (5),
the Secretary of the Treasury shall assess a duty, in the amount
prescribed under paragraph (2), on an agricultural safeguard good
if the Secretary of the Treasury determines that the unit import
price of the good when it enters the United States, determined on
an F.O.B. basis, is less than the trigger price indicated for that
good in Annex 3.18 of the Agreement or any amendment thereto.
(2) Calculation of additional duty.--The amount of the
additional duty assessed under this subsection shall be determined
as follows:
(A) If the difference between the unit import price and the
trigger price is less than, or equal to, 10 percent of the
trigger price, no additional duty shall be imposed.
(B) If the difference between the unit import price and the
trigger price is greater than 10 percent, but less than or
equal to 40 percent, of the trigger price, the additional duty
shall be equal to 30 percent of the difference between the
preferential tariff rate and the column 1 general rate of duty
imposed under the HTS on like articles at the time the
additional duty is imposed.
(C) If the difference between the unit import price and the
trigger price is greater than 40 percent, but less than or
equal to 60 percent, of the trigger price, the additional duty
shall be equal to 50 percent of the difference between the
preferential tariff rate and the column 1 general rate of duty
imposed under the HTS on like articles at the time the
additional duty is imposed.
(D) If the difference between the unit import price and the
trigger price is greater than 60 percent, but less than or
equal to 75 percent, of the trigger price, the additional duty
shall be equal to 70 percent of the difference between the
preferential tariff rate and the column 1 general rate of duty
imposed under the HTS on like articles at the time the
additional duty is imposed.
(E) If the difference between the unit import price and the
trigger price is greater than 75 percent of the trigger price,
the additional duty shall be equal to 100 percent of the
difference between the preferential tariff rate and the column
1 general rate of duty imposed under the HTS on like articles
at the time the additional duty is imposed.
(3) Exceptions.--No additional duty under this subsection shall
be assessed on an agricultural safeguard good if, at the time of
entry, the good is subject to import relief under--
(A) subtitle A of title III of this Act; or
(B) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
(4) Termination.--This subsection shall cease to apply on the
date that is 12 years after the date on which the Agreement enters
into force.
(5) Tariff-rate quotas.--If an agricultural safeguard good is
subject to a tariff-rate quota, and the in-quota duty rate for the
good proclaimed pursuant to subsection (a) or (b) is zero, any
additional duty assessed under this subsection shall be applied
only to over-quota imports of the good.
(6) Notice.--Not later than 60 days after the Secretary of the
Treasury first assesses additional duties on an agricultural
safeguard good under this subsection, the Secretary shall notify
the Government of Chile in writing of such action and shall provide
to the Government of Chile data supporting the assessment of
additional duties.
(7) Modification of trigger prices.--Not later than 60 calendar
days before agreeing with the Government of Chile pursuant to
article 3.18(2)(b) of the Agreement on a modification to a trigger
price for a good listed in Annex 3.18 of the Agreement, the
President shall notify the Committees on Ways and Means and
Agriculture of the House of Representatives and the Committees on
Finance and Agriculture of the Senate of the proposed modification
and the reasons therefor.
(8) Definitions.--In this subsection:
(A) Agricultural safeguard good.--The term ``agricultural
safeguard good'' means a good--
(i) that qualifies as an originating good under section
202;
(ii) that is included in the United States Agricultural
Safeguard Product List set forth in Annex 3.18 of the
Agreement; and
(iii) for which a claim for preferential tariff
treatment under the Agreement has been made.
(B) F.O.B.--The term ``F.O.B.'' means free on board,
regardless of the mode of transportation, at the point of
direct shipment by the seller to the buyer.
(C) Unit import price.--The term ``unit import price''
means the price expressed in dollars per kilogram.
(d) Conversion to Ad Valorem Rates.--For purposes of subsections
(a) and (b), with respect to any good for which the base rate in the
Schedule of the United States to Annex 3.3 of the Agreement is a
specific or compound rate of duty, the President may substitute for the
base rate an ad valorem rate that the President determines to be
equivalent to the base rate.
SEC. 202. RULES OF ORIGIN.
(a) Originating Goods.--
(1) In general.--For purposes of this Act and for purposes of
implementing the tariff treatment provided for under the Agreement,
except as otherwise provided in this section, a good is an
originating good if--
(A) the good is wholly obtained or produced entirely in the
territory of Chile, the United States, or both;
(B) the good--
(i) is produced entirely in the territory of Chile, 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
(ii) satisfies all other applicable requirements of
this section; or
(C) the good is produced entirely in the territory of
Chile, the United States, or both, exclusively from materials
described in subparagraph (A) or (B).
(2) Simple combination or mere dilution.--A good shall not be
considered to be an originating good and a material shall not be
considered to be an originating material by virtue of having
undergone--
(A) simple combining or packaging operations; or
(B) mere dilution with water or another substance that does
not materially alter the characteristics of the good or
material.
(b) De Minimis Amounts of Nonoriginating Materials.--
(1) In general.--Except as provided in paragraphs (2) and (3),
a good that does not undergo a change in tariff classification
pursuant to Annex 4.1 of the Agreement is an originating good if--
(A) the value of all nonoriginating materials that are used
in the production of the good and do not undergo the applicable
change in tariff classification does not exceed 10 percent of
the adjusted value of the good;
(B) the value of such nonoriginating materials is included
in the value of nonoriginating materials for any applicable
regional value-content requirement; and
(C) the good meets all other applicable requirements of
this section.
(2) Exceptions.--Paragraph (1) does not apply to the following:
(A) A nonoriginating material provided for in chapter 4 of
the HTS, or a nonoriginating dairy preparation containing over
10 percent by weight of milk solids provided for in subheading
1901.90 or 2106.90 of the HTS, that is used in the production
of a good provided for in chapter 4 of the HTS.
(B) A nonoriginating material provided for in chapter 4 of
the HTS, or nonoriginating dairy preparations containing over
10 percent by weight of milk solids provided for in subheading
1901.90 of the HTS, that are used in the production of the
following goods:
(i) Infant preparations containing over 10 percent in
weight of milk solids provided for in subheading 1901.10 of
the HTS.
(ii) Mixes and doughs, containing over 25 percent by
weight of butterfat, not put up for retail sale, provided
for in subheading 1901.20 of the HTS.
(iii) Dairy preparations containing over 10 percent by
weight of milk solids provided for in subheading 1901.90 or
2106.90 of the HTS.
(iv) Goods provided for in heading 2105 of the HTS.
(v) Beverages containing milk provided for in
subheading 2202.90 of the HTS.
(vi) Animal feeds containing over 10 percent by weight
of milk solids provided for in subheading 2309.90 of the
HTS.
(C) A nonoriginating material provided for in heading 0805
of the HTS, or any of subheadings 2009.11.00 through 2009.39 of
the HTS, that is used in the production of a good provided for
in any of subheadings 2009.11.00 through 2009.39 of the HTS, 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
of the HTS.
(D) A nonoriginating material provided for in chapter 15 of
the HTS that is used in the production of a good provided for
in any of headings 1501.00.00 through 1508, 1512, 1514, and
1515 of the HTS.
(E) A nonoriginating material provided for in heading 1701
of the HTS that is used in the production of a good provided
for in any of headings 1701 through 1703 of the HTS.
(F) A nonoriginating material provided for in chapter 17 of
the HTS or in heading 1805.00.00 of the HTS that is used in the
production of a good provided for in subheading 1806.10 of the
HTS.
(G) A nonoriginating material provided for in any of
headings 2203 through 2208 of the HTS that is used in the
production of a good provided for in heading 2207 or 2208 of
the HTS.
(H) A nonoriginating material used in the production of a
good provided for in any of chapters 1 through 21 of the HTS,
unless the nonoriginating material is provided for in a
different subheading than the good for which origin is being
determined under this section.
(3) Goods provided for in chapters 50 through 63 of the hts.--
(A) In general.--Except as provided in subparagraph (B), a
good provided for in any of chapters 50 through 63 of the HTS
that is not an originating good because certain fibers or yarns
used in the production of the component of the good that
determines the tariff classification of the good do not undergo
an applicable change in tariff classification set out in Annex
4.1 of the Agreement, shall be considered to be an originating
good if the total weight of all such fibers or yarns in that
component is not more than 7 percent of the total weight of
that component.
(B) Certain textile or apparel goods.--A textile or apparel
good containing elastomeric yarns in the component of the good
that determines the tariff classification of the good shall be
considered to be an originating good only if such yarns are
wholly formed in the territory of Chile or the United States.
(c) Accumulation.--
(1) Originating goods incorporated in goods of other country.--
Originating goods or materials of Chile or the United States that
are incorporated into a good in the territory of the other country
shall be considered to originate in the territory of the other
country.
(2) Multiple procedures.--A good that is produced in the
territory of Chile, the United States, or both, by 1 or more
producers, is an originating good if the good satisfies the
requirements of subsection (a) and all other applicable
requirements of this section.
(d) Regional Value-Content.--
(1) In general.--For purposes of subsection (a)(2), the
regional value-content of a good referred to in Annex 4.1 of the
Agreement shall be calculated, at the choice of the person claiming
preferential tariff treatment for the good, on the basis of the
build-down method described in paragraph (2) or the build-up method
described in paragraph (3), unless otherwise provided in Annex 4.1
of the Agreement.
(2) Build-down method.--
(A) In general.--The regional value-content of a good may
be calculated on the basis of the following build-down method:
AV - VNM
RVC = ------------ <greek-e>
AV 100
------------------------------------------------------------------------
(B) Definitions.--For purposes of subparagraph (A):
(i) The term ``RVC'' means the regional value-content,
expressed as a percentage.
(ii) The term ``AV'' means the adjusted value.
(iii) The term ``VNM'' means the value of
nonoriginating materials used by the producer in the
production of the good.
(3) Build-up method.--
(A) In general.--The regional value-content of a good may
be calculated on the basis of the following build-up method:
VOM
RVC = ------------ <greek-e>
AV 100
------------------------------------------------------------------------
(B) Definitions.--For purposes of subparagraph (A):
(i) The term ``RVC'' means the regional value-content,
expressed as a percentage.
(ii) The term ``AV'' means the adjusted value.
(iii) The term ``VOM'' means the value of originating
materials used by the producer in the production of the
good.
(e) Value of Materials.--
(1) In general.--For purposes of calculating the regional
value-content of a good under subsection (d), and for purposes of
applying the de minimis rules under subsection (b), the value of a
material is--
(A) in the case of a material that is imported by the
producer of the good, the adjusted value of the material with
respect to that importation;
(B) in the case of a material acquired in the territory in
which the good is produced, except for a material to which
subparagraph (C) applies, the producer's price actually paid or
payable for the material;
(C) in the case of a material provided to the producer
without charge, or at a price reflecting a discount or similar
reduction, the sum of--
(i) all expenses incurred in the growth, production, or
manufacture of the material, including general expenses;
and
(ii) an amount for profit; or
(D) 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.
(2) Further adjustments to the value of materials.--
(A) Originating materials.--The following expenses, if not
included in the value of an originating material calculated
under paragraph (1), may be added to the value of the
originating material:
(i) The costs of freight, insurance, packing, and all
other costs incurred in transporting the material to the
location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of Chile, the United States,
or both, other than duties and 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 byproduct.
(B) Nonoriginating materials.--The following expenses, if
included in the value of a nonoriginating material calculated
under paragraph (1), may be deducted from the value of the
nonoriginating material:
(i) The costs of freight, insurance, packing, and all
other costs incurred in transporting the material to the
location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of Chile, the United States,
or both, other than duties and 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 Chile or the United States.
(f) Accessories, Spare Parts, or Tools.--Accessories, spare parts,
or tools delivered with a good that form part of the good's standard
accessories, spare parts, or tools shall be regarded as a material used
in the production of the good, if--
(1) the accessories, spare parts, or tools are classified with
and not invoiced separately from the good; and
(2) the quantities and value of the accessories, spare parts,
or tools are customary for the good.
(g) Fungible Goods and Materials.--
(1) In general.--
(A) Claim for preferential treatment.--A person claiming
preferential tariff treatment for a good may claim that a
fungible good or material is originating either based on the
physical segregation of each fungible good or material or by
using an inventory management method.
(B) Inventory management method.--In this subsection, the
term ``inventory management method'' means--
(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 Chile or the United States); or
(II) otherwise accepted by that country.
(2) Election of inventory method.--A person selecting an
inventory management method under paragraph (1) for particular
fungible goods or materials shall continue to use that method for
those goods or materials throughout the fiscal year of that person.
(h) Packaging Materials and Containers for Retail Sale.--Packaging
materials and containers in which a good is packaged for retail sale,
if classified with the good, shall be disregarded in determining
whether all nonoriginating materials used in the production of the good
undergo the applicable change in tariff classification set out in Annex
4.1 of the Agreement, and, if the good is subject to a regional value-
content requirement, the value of such packaging materials and
containers shall be taken into account as originating or nonoriginating
materials, as the case may be, in calculating the regional value-
content of the good.
(i) Packing Materials and Containers for Shipment.--Packing
materials and containers for shipment shall be disregarded in
determining whether--
(1) the nonoriginating materials used in the production of the
good undergo an applicable change in tariff classification set out
in Annex 4.1 of the Agreement; and
(2) the good satisfies a regional value-content requirement.
(j) Indirect Materials.--An indirect material shall be considered
to be an originating material without regard to where it is produced.
(k) Transit and Transshipment.--A good that has undergone
production necessary to qualify as an originating good under subsection
(a) shall not be considered to be an originating good if, subsequent to
that production, the good undergoes further production or any other
operation outside the territory of Chile or the United States, other
than unloading, reloading, or any other process necessary to preserve
the good in good condition or to transport the good to the territory of
Chile or the United States.
(l) Textile and Apparel Goods Classifiable as Goods Put Up in
Sets.--Notwithstanding the rules set forth in Annex 4.1 of the
Agreement, textile and apparel goods classifiable as goods put up in
sets for retail sale as provided for in General Rule of Interpretation
3 of the Harmonized System shall not be considered to be originating
goods unless each of the goods in the set is an originating good or the
total value of the nonoriginating goods in the set does not exceed 10
percent of the value of the set determined for purposes of assessing
customs duties.
(m) Application and Interpretation.--In this section:
(1) The basis for any tariff classification is the HTS.
(2) Any cost or value referred to in this section shall be
recorded and maintained in accordance with the generally accepted
accounting principles applicable in the territory of the country in
which the good is produced (whether Chile or the United States).
(n) Definitions.--In this section:
(1) Adjusted value.--The term ``adjusted value'' means the
value determined in accordance with articles 1 through 8, article
15, and the corresponding interpretive notes of the Agreement on
Implementation of Article VII of the General Agreement on Tariffs
and Trade 1994 referred to in section 101(d)(8) of the Uruguay
Round Agreements Act, except that such value may be adjusted to
exclude any costs, charges, or expenses incurred for
transportation, insurance, and related services incident to the
international shipment of the merchandise from the country of
exportation to the place of importation.
(2) Fungible goods or fungible materials.--The terms ``fungible
goods'' and ``fungible materials'' mean goods or materials, as the
case may be, that are interchangeable for commercial purposes and
the properties of which are essentially identical.
(3) Generally accepted accounting principles.--The term
``generally accepted accounting principles'' means the principles,
rules, and procedures, including both broad and specific
guidelines, that define the accounting practices accepted in the
territory of Chile or the United States, as the case may be.
(4) Goods wholly obtained or produced entirely in the territory
of chile, the united states, or both.--The term ``goods wholly
obtained or produced entirely in the territory of Chile, the United
States, or both'' means--
(A) mineral goods extracted in the territory of Chile, the
United States, or both;
(B) vegetable goods, as such goods are defined in the
Harmonized System, harvested in the territory of Chile, the
United States, or both;
(C) live animals born and raised in the territory of Chile,
the United States, or both;
(D) goods obtained from hunting, trapping, or fishing in
the territory of Chile, the United States, or both;
(E) goods (fish, shellfish, and other marine life) taken
from the sea by vessels registered or recorded with Chile or
the United States and flying the flag of that country;
(F) goods produced on board factory ships from the goods
referred to in subparagraph (E), if such factory ships are
registered or recorded with Chile or the United States and fly
the flag of that country;
(G) goods taken by Chile or the United States or a person
of Chile or the United States from the seabed or beneath the
seabed outside territorial waters, if Chile or the United
States has rights to exploit such seabed;
(H) goods taken from outer space, if the goods are obtained
by Chile or the United States or a person of Chile or the
United States and not processed in the territory of a country
other than Chile or the United States;
(I) waste and scrap derived from--
(i) production in the territory of Chile, the United
States, or both; or
(ii) used goods collected in the territory of Chile,
the United States, or both, if such goods are fit only for
the recovery of raw materials;
(J) recovered goods derived in the territory of Chile or
the United States from used goods, and used in the territory of
that country in the production of remanufactured goods; and
(K) goods produced in the territory of Chile, the United
States, or both, exclusively--
(i) from goods referred to in any of subparagraphs (A)
through (I), or
(ii) from the derivatives of goods referred to in
clause (i),
at any stage of production.
(5) Harmonized system.--The term ``Harmonized System'' means
the Harmonized Commodity Description and Coding System.
(6) Indirect material.--The term ``indirect material'' means a
good used in the production, testing, or inspection of a good but
not physically incorporated into the good, or a good used in the
maintenance of buildings or the operation of equipment associated
with the production of a good, including--
(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 goods that are not incorporated into the good
but the use of which in the production of the good can
reasonably be demonstrated to be a part of that production.
(7) Material.--The term ``material'' means a good that is used
in the production of another good, including a part, ingredient, or
indirect material.
(8) Material that is self-produced.--The term ``material that
is self-produced'' means a material that is an originating good
produced by a producer of a good and used in the production of that
good.
(9) Nonoriginating good or nonoriginating material.--The terms
``nonoriginating good'' and ``nonoriginating material'' mean a good
or material, as the case may be, that does not qualify as an
originating good under this section.
(10) Packing materials and containers for shipment.--The term
``packing materials and containers for shipment'' means the goods
used to protect a good during its transportation, and does not
include the packaging materials and containers in which a good is
packaged for retail sale.
(11) Preferential tariff treatment.--The term ``preferential
tariff treatment'' means the customs duty rate that is applicable
to an originating good pursuant to chapter 3 of the Agreement.
(12) Producer.--The term ``producer'' means a person who
engages in the production of a good in the territory of Chile or
the United States.
(13) Production.--The term ``production'' means growing,
mining, harvesting, fishing, raising, trapping, hunting,
manufacturing, processing, assembling, or disassembling a good.
(14) Recovered goods.--
(A) In general.--The term ``recovered goods'' means
materials in the form of individual parts that are the result
of--
(i) the complete disassembly of used goods into
individual parts; and
(ii) the cleaning, inspecting, testing, or other
processing of those parts as necessary for improvement to
sound working condition by one or more of the processes
described in subparagraph (B), in order for such parts to
be assembled with other parts, including other parts that
have undergone the processes described in this paragraph,
in the production of a remanufactured good.
(B) Processes.--The processes referred to in subparagraph
(A)(ii) are welding, flame spraying, surface machining,
knurling, plating, sleeving, and rewinding.
(15) Remanufactured good.--The term ``remanufactured good''
means an industrial good assembled in the territory of Chile or the
United States, that is listed in Annex 4.18 of the Agreement, and--
(A) is entirely or partially comprised of recovered goods;
(B) has the same life expectancy and meets the same
performance standards as a new good; and
(C) enjoys the same factory warranty as such a new good.
(o) Presidential Proclamation Authority.--
(1) In general.--The President is authorized to proclaim, as
part of the HTS--
(A) the provisions set out in Annex 4.1 of the Agreement;
and
(B) any additional subordinate category necessary to carry
out this title consistent with the Agreement.
(2) Modifications.--
(A) In general.--Subject to the consultation and layover
provisions of section 103(a), the President may proclaim
modifications to the provisions proclaimed under the authority
of paragraph (1)(A), other than provisions of chapters 50
through 63 of the HTS, as included in Annex 4.1 of the
Agreement.
(B) Additional proclamations.--Notwithstanding subparagraph
(A), and subject to the consultation and layover provisions of
section 103(a), the President may proclaim--
(i) modifications to the provisions proclaimed under
the authority of paragraph (1)(A) that are necessary to
implement an agreement with Chile pursuant to article
3.20(5) of the Agreement; and
(ii) before the 1st anniversary of the date of the
enactment of this Act, modifications to correct any
typographical, clerical, or other nonsubstantive technical
error regarding the provisions of chapters 50 through 63 of
the HTS, as included in Annex 4.1 of the Agreement.
SEC. 203. DRAWBACK.
(a) Definition of a Good Subject to Chile FTA Drawback.--For
purposes of this Act and the amendments made by subsection (b), the
term ``good subject to Chile FTA drawback'' means any imported good
other than the following:
(1) A good entered under bond for transportation and
exportation to Chile.
(2)(A) A good exported to Chile in the same condition as when
imported into the United States.
(B) For purposes of subparagraph (A)--
(i) processes such as testing, cleaning, repacking,
inspecting, sorting, or marking a good, or preserving it in its
same condition, shall not be considered to change the condition
of the good; and
(ii) if a good described in subparagraph (A) is commingled
with fungible goods and exported in the same condition, the
origin of the good for the purposes of subsection (j)(1) of
section 313 of the Tariff Act of 1930 (19 U.S.C. 1313(j)(1))
may be determined on the basis of the inventory methods
provided for in the regulations implementing this title.
(3) A good--
(A) that is--
(i) deemed to be exported from the United States;
(ii) used as a material in the production of another
good that is deemed to be exported to Chile; or
(iii) substituted for by a good of the same kind and
quality that is used as a material in the production of
another good that is deemed to be exported to Chile; and
(B) that is delivered--
(i) to a duty-free shop;
(ii) for ship's stores or supplies for a ship or
aircraft; or
(iii) for use in a project undertaken jointly by the
United States and Chile and destined to become the property
of the United States.
(4) A good exported to Chile for which a refund of customs
duties is granted by reason of--
(A) the failure of the good to conform to sample or
specification; or
(B) the shipment of the good without the consent of the
consignee.
(5) A good that qualifies under the rules of origin set out in
section 202 that is--
(A) exported to Chile;
(B) used as a material in the production of another good
that is exported to Chile; or
(C) substituted for by a good of the same kind and quality
that is used as a material in the production of another good
that is exported to Chile.
(b) Consequential Amendments.--
(1) Bonded manufacturing warehouses.--Section 311 of the Tariff
Act of 1930 (19 U.S.C. 1311) is amended by adding at the end the
following new paragraph:
``No article manufactured in a bonded warehouse from materials that
are goods subject to Chile FTA drawback, as defined in section 203(a)
of the United States-Chile Free Trade Agreement Implementation Act, may
be withdrawn from warehouse for exportation to Chile without assessment
of a duty on the materials in their condition and quantity, and at
their weight, at the time of importation into the United States. The
duty shall be paid before the 61st day after the date of exportation,
except that the duty may be waived or reduced by--
``(1) 100 percent during the 8-year period beginning on January
1, 2004;
``(2) 75 percent during the 1-year period beginning on January
1, 2012;
``(3) 50 percent during the 1-year period beginning on January
1, 2013; and
``(4) 25 percent during the 1-year period beginning on January
1, 2014.''.
(2) Bonded smelting and refining warehouses.--Section 312 of
the Tariff Act of 1930 (19 U.S.C. 1312) is amended--
(A) in paragraph (1) of subsection (b), by striking
``except that'' and all that follows through subparagraph (B)
and inserting the following: ``except that--
``(A) in the case of a withdrawal for exportation of such a
product to a NAFTA country, as defined in section 2(4) of the
North American Free Trade Agreement Implementation Act, if any
of the imported metal-bearing materials are goods subject to
NAFTA drawback, as defined in section 203(a) of that Act, the
duties on the materials shall be paid, and the charges against
the bond canceled, before the 61st day after the date of
exportation; but upon the presentation, before such 61st day,
of satisfactory evidence of the amount of any customs duties
paid to the NAFTA country on the product, the duties on the
materials may be waived or reduced (subject to section
508(b)(2)(B)) in an amount that does not exceed the lesser of--
``(i) the total amount of customs duties owed on the
materials on importation into the United States, or
``(ii) the total amount of customs duties paid to the
NAFTA country on the product, and
``(B) in the case of a withdrawal for exportation of such a
product to Chile, if any of the imported metal-bearing
materials are goods subject to Chile FTA drawback, as defined
in section 203(a) of the United States-Chile Free Trade
Agreement Implementation Act, the duties on the materials shall
be paid, and the charges against the bond canceled, before the
61st day after the date of exportation, except that the duties
may be waived or reduced by--
``(i) 100 percent during the 8-year period beginning on
January 1, 2004,
``(ii) 75 percent during the 1-year period beginning on
January 1, 2012,
``(iii) 50 percent during the 1-year period beginning
on January 1, 2013, and
``(iv) 25 percent during the 1-year period beginning on
January 1, 2014, or'';
(B) in paragraph (4) of subsection (b), by striking
``except that'' and all that follows through subparagraph (B)
and inserting the following: ``except that--
``(A) in the case of a withdrawal for exportation of such a
product to a NAFTA country, as defined in section 2(4) of the
North American Free Trade Agreement Implementation Act, if any
of the imported metal-bearing materials are goods subject to
NAFTA drawback, as defined in section 203(a) of that Act, the
duties on the materials shall be paid, and the charges against
the bond canceled, before the 61st day after the date of
exportation; but upon the presentation, before such 61st day,
of satisfactory evidence of the amount of any customs duties
paid to the NAFTA country on the product, the duties on the
materials may be waived or reduced (subject to section
508(b)(2)(B)) in an amount that does not exceed the lesser of--
``(i) the total amount of customs duties owed on the
materials on importation into the United States, or
``(ii) the total amount of customs duties paid to the
NAFTA country on the product, and
``(B) in the case of a withdrawal for exportation of such a
product to Chile, if any of the imported metal-bearing
materials are goods subject to Chile FTA drawback, as defined
in section 203(a) of the United States-Chile Free Trade
Agreement Implementation Act, the duties on the materials shall
be paid, and the charges against the bond canceled, before the
61st day after the date of exportation, except that the duties
may be waived or reduced by--
``(i) 100 percent during the 8-year period beginning on
January 1, 2004,
``(ii) 75 percent during the 1-year period beginning on
January 1, 2012,
``(iii) 50 percent during the 1-year period beginning
on January 1, 2013, and
``(iv) 25 percent during the 1-year period beginning on
January 1, 2014, or''; and
(C) in subsection (d), in the matter preceding paragraph
(1), by striking ``except that'' and all that follows through
the end of paragraph (2) and inserting the following: ``except
that--
``(1) in the case of a withdrawal for exportation to a NAFTA
country, as defined in section 2(4) of the North American Free
Trade Agreement Implementation Act, if any of the imported metal-
bearing materials are goods subject to NAFTA drawback, as defined
in section 203(a) of that Act, charges against the bond shall be
paid before the 61st day after the date of exportation; but upon
the presentation, before such 61st day, of satisfactory evidence of
the amount of any customs duties paid to the NAFTA country on the
product, the bond shall be credited (subject to section
508(b)(2)(B)) in an amount not to exceed the lesser of--
``(A) the total amount of customs duties paid or owed on
the materials on importation into the United States, or
``(B) the total amount of customs duties paid to the NAFTA
country on the product; and
``(2) in the case of a withdrawal for exportation to Chile, if
any of the imported metal-bearing materials are goods subject to
Chile FTA drawback, as defined in section 203(a) of the United
States-Chile Free Trade Agreement Implementation Act, charges
against the bond shall be paid before the 61st day after the date
of exportation, and the bond shall be credited in an amount equal
to--
``(A) 100 percent of the total amount of customs duties
paid or owed on the materials on importation into the United
States during the 8-year period beginning on January 1, 2004,
``(B) 75 percent of the total amount of customs duties paid
or owed on the materials on importation into the United States
during the 1-year period beginning on January 1, 2012,
``(C) 50 percent of the total amount of customs duties paid
or owed on the materials on importation into the United States
during the 1-year period beginning on January 1, 2013, and
``(D) 25 percent of the total amount of customs duties paid
or owed on the materials on importation into the United States
during the 1-year period beginning on January 1, 2014.''.
(3) Drawback.--Section 313 of the Tariff Act of 1930 (19 U.S.C.
1313) is amended--
(A) in paragraph (4) of subsection (j)--
(i) by striking ``(4)'' and inserting ``(4)(A)''; and
(ii) by adding at the end the following new
subparagraph:
``(B) Beginning on January 1, 2015, the exportation to Chile of
merchandise that is fungible with and substituted for imported
merchandise, other than merchandise described in paragraphs (1)
through (5) of section 203(a) of the United States-Chile Free Trade
Agreement Implementation Act, shall not constitute an exportation
for purposes of paragraph (2). The preceding sentence shall not be
construed to permit the substitution of unused drawback under
paragraph (2) of this subsection with respect to merchandise
described in paragraph (2) of section 203(a) of the United States-
Chile Free Trade Agreement Implementation Act.'';
(B) in subsection (n)--
(i) by striking ``(n)'' and inserting the following:
``(n) Refunds, Waivers, or Reductions Under Certain Free Trade
Agreements.--'';
(ii) in paragraph (1)--
(I) by striking ``; and'' at the end of
subparagraph (B);
(II) by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(III) by adding at the end the following new
subparagraph:
``(D) the term `good subject to Chile FTA drawback' has the
meaning given that term in section 203(a) of the United States-
Chile Free Trade Agreement Implementation Act.''; and
(iii) by adding the following new paragraph at the end:
``(4)(A) For purposes of subsections (a), (b), (f), (h), (j)(2),
(p), and (q), if an article that is exported to Chile is a good subject
to Chile FTA drawback, no customs duties on the good may be refunded,
waived, or reduced, except as provided in subparagraph (B).
``(B) The customs duties referred to in subparagraph (A) may be
refunded, waived, or reduced by--
``(i) 100 percent during the 8-year period beginning on January
1, 2004;
``(ii) 75 percent during the 1-year period beginning on January
1, 2012;
``(iii) 50 percent during the 1-year period beginning on
January 1, 2013; and
``(iv) 25 percent during the 1-year period beginning on January
1, 2014.''; and
(C) in subsection (o)--
(i) by striking ``(o)'' and inserting the following:
``(o) Special Rules for Certain Vessels and Imported Materials.--
''; and
(ii) by adding at the end the following new paragraphs:
``(3) For purposes of subsection (g), if--
``(A) a vessel is built for the account and ownership of a
resident of Chile or the Government of Chile, and
``(B) imported materials that are used in the construction and
equipment of the vessel are goods subject to Chile FTA drawback, as
defined in section 203(a) of the United States-Chile Free Trade
Agreement Implementation Act,
no customs duties on such materials may be refunded, waived, or
reduced, except as provided in paragraph (4).
``(4) The customs duties referred to in paragraph (3) may be
refunded, waived or reduced by--
``(A) 100 percent during the 8-year period beginning on January
1, 2004;
``(B) 75 percent during the 1-year period beginning on January
1, 2012;
``(C) 50 percent during the 1-year period beginning on January
1, 2013; and
``(D) 25 percent during the 1-year period beginning on January
1, 2014.''.
(4) Manipulation in warehouse.--Section 562 of the Tariff Act
of 1930 (19 U.S.C. 1562) is amended--
(A) in paragraph (3), by striking ``to a NAFTA country''
and inserting ``to Chile, to a NAFTA country,'';
(B) by striking ``and'' at the end of paragraph (4)(B);
(C) by striking the period at the end of paragraph (5) and
inserting ``; and''; and
(D) by inserting after paragraph (5) the following:
``(6)(A) without payment of duties for exportation to Chile, if
the merchandise is of a kind described in any of paragraphs (1)
through (5) of section 203(a) of the United States-Chile Free Trade
Agreement Implementation Act; and
``(B) for exportation to Chile if the merchandise consists of
goods subject to Chile FTA drawback, as defined in section 203(a)
of the United States-Chile Free Trade Agreement Implementation Act,
except that--
``(i) the merchandise may not be withdrawn from warehouse
without assessment of a duty on the merchandise in its
condition and quantity, and at its weight, at the time of
withdrawal from the warehouse with such additions to, or
deductions from, the final appraised value as may be necessary
by reason of a change in condition, and
``(ii) duty shall be paid on the merchandise before the
61st day after the date of exportation, except that such duties
may be waived or reduced by--
``(I) 100 percent during the 8-year period beginning on
January 1, 2004,
``(II) 75 percent during the 1-year period beginning on
January 1, 2012,
``(III) 50 percent during the 1-year period beginning
on January 1, 2013, and
``(IV) 25 percent during the 1-year period beginning on
January 1, 2014.''.
(5) Foreign trade zones.--Section 3(a) of the Act of June 18,
1934 (commonly known as the ``Foreign Trade Zones Act''; 19 U.S.C.
81c(a)) is amended by striking the end period and inserting the
following: ``: Provided further, That no merchandise that consists
of goods subject to Chile FTA drawback, as defined in section
203(a) of the United States-Chile Free Trade Agreement
Implementation Act, that is manufactured or otherwise changed in
condition shall be exported to Chile without an assessment of a
duty on the merchandise in its condition and quantity, and at its
weight, at the time of its exportation (or if the privilege in the
first proviso to this subsection was requested, an assessment of a
duty on the merchandise in its condition and quantity, and at its
weight, at the time of its admission into the zone) and the payment
of the assessed duty before the 61st day after the date of
exportation of the article, except that the customs duty may be
waived or reduced by (1) 100 percent during the 8-year period
beginning on January 1, 2004; (2) 75 percent during the 1-year
period beginning on January 1, 2012; (3) 50 percent during the 1-
year period beginning on January 1, 2013; and (4) 25 percent during
the 1-year period beginning on January 1, 2014.''.
(c) Inapplicability to Countervailing and Antidumping Duties.--
Nothing in this section or the amendments made by this section shall be
considered to authorize the refund, waiver, or reduction of
countervailing duties or antidumping duties imposed on an imported
good.
SEC. 204. CUSTOMS USER FEES.
Section 13031(b) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(b)) is amended by inserting after paragraph
(11) the following:
``(12) No fee may be charged under subsection (a) (9) or (10) with
respect to goods that qualify as originating goods under section 202 of
the United States-Chile Free Trade Agreement Implementation Act. Any
service for which an exemption from such fee is provided by reason of
this paragraph may not be funded with money contained in the Customs
User Fee Account.''.
SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; DENIAL OF PREFERENTIAL
TARIFF TREATMENT; FALSE CERTIFICATES OF ORIGIN.
(a) Disclosure of Incorrect Information.--Section 592 of the Tariff
Act of 1930 (19 U.S.C. 1592) is amended--
(1) in subsection (c)--
(A) by redesignating paragraph (6) as paragraph (7); and
(B) by inserting after paragraph (5) the following new
paragraph:
``(6) Prior disclosure regarding claims under the united
states-chile free trade agreement.--An importer shall not be
subject to penalties under subsection (a) for making an incorrect
claim that a good qualifies as an originating good under section
202 of the United States-Chile Free Trade Agreement Implementation
Act if the importer, in accordance with regulations issued by the
Secretary of the Treasury, voluntarily makes a corrected
declaration and pays any duties owing.''; and
(2) by adding at the end the following new subsection:
``(g) False Certifications of Origin Under the United States-Chile
Free Trade Agreement.--
``(1) In general.--Subject to paragraph (2), it is unlawful for
any person to certify falsely, by fraud, gross negligence, or
negligence, in a Chile FTA Certificate of Origin (as defined in
section 508(f)(1)(B) of this Act that a good exported from the
United States qualifies as an originating good under the rules of
origin set out in section 202 of the United States-Chile Free Trade
Agreement Implementation Act. The procedures and penalties of this
section that apply to a violation of subsection (a) also apply to a
violation of this subsection.
``(2) Immediate and voluntary disclosure of incorrect
information.--No penalty shall be imposed under this subsection if,
immediately after an exporter or producer that issued a Chile FTA
Certificate of Origin has reason to believe that such certificate
contains or is based on incorrect information, the exporter or
producer voluntarily provides written notice of such incorrect
information to every person to whom the certificate was issued.
``(3) Exception.--A person may not be considered to have
violated paragraph (1) if--
``(A) the information was correct at the time it was
provided in a Chile FTA Certificate of Origin but was later
rendered incorrect due to a change in circumstances; and
``(B) the person immediately and voluntarily provides
written notice of the change in circumstances to all persons to
whom the person provided the certificate.''.
(b) Denial of Preferential Tariff Treatment.--Section 514 of the
Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding at the end the
following new subsection:
``(g) Denial of Preferential Tariff Treatment Under United States-
Chile Free Trade Agreement.--If the Bureau of Customs and Border
Protection or the Bureau of Immigration and Customs Enforcement finds
indications of a pattern of conduct by an importer of false or
unsupported representations that goods qualify under the rules of
origin set out in section 202 of the United States-Chile Free Trade
Agreement Implementation Act, the Bureau of Customs and Border
Protection, in accordance with regulations issued by the Secretary of
the Treasury, may deny preferential tariff treatment under the United
States-Chile Free Trade Agreement to entries of identical goods
imported by that person until the person establishes to the
satisfaction of the Bureau of Customs and Border Protection that
representations of that person are in conformity with such section
202.''.
SEC. 206. RELIQUIDATION OF ENTRIES.
Subsection (d) of section 520 of the Tariff Act of 1930 (19 U.S.C.
1520(d)) is amended--
(1) by striking ``(d)'' and inserting the following:
``(d) Goods Qualifying Under Free Trade Agreement Rules of
Origin.--'';
(2) in the matter preceding paragraph (1), by inserting ``or
section 202 of the United States-Chile Free Trade Agreement
Implementation Act'' after ``Act'';
(3) in paragraph (1), by striking ``those'' and inserting ``the
applicable''; and
(4) in paragraph (2), by inserting before the semicolon ``, or
other certificates of origin, as the case may be''.
SEC. 207. RECORDKEEPING REQUIREMENTS.
Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
(1) by striking the heading of subsection (b) and inserting the
following: ``Exportations to NAFTA Countries.--''; and
(2) by adding at the end the following:
``(f) Certificates of Origin for Goods Exported Under the United
States-Chile Free Trade Agreement.--
``(1) Definitions.--In this subsection:
``(A) Records and supporting documents.--The term `records
and supporting documents' means, with respect to an exported
good under paragraph (2), records and documents related to the
origin of the good, including--
``(i) the purchase, cost, and value of, and payment
for, the good;
``(ii) if applicable, the purchase, cost, and value of,
and payment for, all materials, including recovered goods,
used in the production of the good; and
``(iii) if applicable, the production of the good in
the form in which it was exported.
``(B) Chile fta certificate of origin.--The term `Chile FTA
Certificate of Origin' means the certification, established
under article 4.13 of the United States-Chile Free Trade
Agreement, that a good qualifies as an originating good under
such Agreement.
``(2) Exports to chile.--Any person who completes and issues a
Chile FTA Certificate of Origin for a good exported from the United
States shall make, keep, and, pursuant to rules and regulations
promulgated by the Secretary of the Treasury, render for
examination and inspection all records and supporting documents
related to the origin of the good (including the Certificate or
copies thereof).
``(3) Retention period.--Records and supporting documents shall
be kept by the person who issued a Chile FTA Certificate of Origin
for at least 5 years after the date on which the certificate was
issued.
``(g) Penalties.--Any person who fails to retain records and
supporting documents required by subsection (f) or the regulations
issued to implement that subsection shall be liable for the greater
of--
``(1) a civil penalty not to exceed $10,000; or
``(2) the general record keeping penalty that applies under the
customs laws of the United States.''.
SEC. 208. ENFORCEMENT OF TEXTILE AND APPAREL RULES OF ORIGIN.
(a) Action During Verification.--If the Secretary of the Treasury
requests the Government of Chile to conduct a verification pursuant to
article 3.21 of the Agreement for purposes of determining that--
(1) an exporter or producer in Chile is complying with
applicable customs laws, regulations, and procedures regarding
trade in textile and apparel goods, or
(2) claims that textile or apparel goods exported or produced
by such exporter or producer--
(A) qualify as originating goods under section 202 of this
Act, or
(B) are goods of Chile,
are accurate,
the President may direct the Secretary to take appropriate action
described in subsection (b) while the verification is being conducted.
(b) Appropriate Action Described.--Appropriate action under
subsection (a) includes--
(1) suspension of liquidation of entries of textile and apparel
goods exported or produced by the person that is the subject of the
verification, in a case in which the request for verification was
based on a reasonable suspicion of unlawful activity related to
such goods; and
(2) publication of the name of the person that is the subject
of the verification.
(c) Action When Information is Insufficient.--If the Secretary of
the Treasury determines that the information obtained within 12 months
after making a request for a verification under subsection (a) is
insufficient to make a determination under subsection (a), the
President may direct the Secretary to take appropriate action described
in subsection (d) until such time as the Secretary receives information
sufficient to make a determination under subsection (a) or until such
earlier date as the President may direct.
(d) Appropriate Action Described.--Appropriate action under
subsection (c) includes--
(1) publication of the identity of the person that is the
subject of the verification;
(2) denial of preferential tariff treatment under the Agreement
to any textile or apparel goods exported or produced by the person
that is the subject of the verification; and
(3) denial of entry into the United States of any textile or
apparel goods exported or produced by the person that is the
subject of the verification.
SEC. 209. CONFORMING AMENDMENTS.
Section 508(b)(2)(B)(i)(I) of the Tariff Act of 1930 (19 U.S.C.
1508(b)(2)(B)(i)(I)) is amended--
(1) by striking ``the last paragraph of section 311'' and
inserting ``the eleventh paragraph of section 311''; and
(2) by striking ``the last proviso to section 3(a)'' and
inserting ``the proviso preceding the last proviso to section
3(a)''.
SEC. 210. REGULATIONS.
The Secretary of the Treasury shall prescribe such regulations as
may be necessary to carry out--
(1) subsections (a) through (n) of section 202, and sections
203 and 204;
(2) amendments made by the sections referred to in paragraph
(1); and
(3) proclamations issued under section 202(o).
TITLE III--RELIEF FROM IMPORTS
SEC. 301. DEFINITIONS.
In this title:
(1) Commission.--The term ``Commission'' means the United
States International Trade Commission.
(2) Chilean article.--The term ``Chilean article'' means an
article that qualifies as an originating good under section 202(a)
of this Act.
(3) Chilean textile or apparel article.--The term ``Chilean
textile or apparel article'' means an article--
(A) that is listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)); and
(B) that is a Chilean article.
Subtitle A--Relief From Imports Benefiting From the Agreement
SEC. 311. COMMENCING OF ACTION FOR RELIEF.
(a) Filing of Petition.--A petition requesting action under this
subtitle for the purpose of adjusting to the obligations of the United
States under the Agreement may be filed with the Commission by an
entity, including a trade association, firm, certified or recognized
union, or group of workers, that is representative of an industry. The
Commission shall transmit a copy of any petition filed under this
subsection to the United States Trade Representative.
(b) Investigation and Determination.--Upon the filing of a petition
under subsection (a), the Commission, unless subsection (d) applies,
shall promptly initiate an investigation to determine whether, as a
result of the reduction or elimination of a duty provided for under the
Agreement, a Chilean article is being imported into the United States
in such increased quantities, in absolute terms or relative to domestic
production, and under such conditions that imports of the Chilean
article constitute a substantial cause of serious injury or threat
thereof to the domestic industry producing an article that is like, or
directly competitive with, the imported article.
(c) Applicable Provisions.--The following provisions of section 202
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any
investigation initiated under subsection (b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(2) Subsection (c).
(3) Subsection (i).
(d) Articles Exempt From Investigation.--No investigation may be
initiated under this section with respect to any Chilean article if,
after the date that the Agreement enters into force, import relief has
been provided with respect to that Chilean article under this subtitle,
or if, at the time the petition is filed, the article is subject to
import relief under chapter 1 of title II of the Trade Act of 1974.
SEC. 312. COMMISSION ACTION ON PETITION.
(a) Determination.--Not later than 120 days after the date on which
an investigation is initiated under section 311(b) with respect to a
petition, the Commission shall make the determination required under
that section.
(b) Applicable Provisions.--For purposes of this subtitle, the
provisions of paragraphs (1), (2), and (3) of section 330(d) of the
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be
applied with respect to determinations and findings made under this
section as if such determinations and findings were made under section
202 of the Trade Act of 1974 (19 U.S.C. 2252).
(c) Additional Finding and Recommendation if Determination
Affirmative.--If the determination made by the Commission under
subsection (a) with respect to imports of an article is affirmative, or
if the President may consider a determination of the Commission to be
an affirmative determination as provided for under paragraph (1) of
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)), the
Commission shall find, and recommend to the President in the report
required under subsection (d), the amount of import relief that is
necessary to remedy or prevent the injury found by the Commission in
the determination and to facilitate the efforts of the domestic
industry to make a positive adjustment to import competition. The
import relief recommended by the Commission under this subsection shall
be limited to the relief described in section 313(c). Only those
members of the Commission who voted in the affirmative under subsection
(a) are eligible to vote on the proposed action to remedy or prevent
the injury found by the Commission. Members of the Commission who did
not vote in the affirmative may submit, in the report required under
subsection (d), separate views regarding what action, if any, should be
taken to remedy or prevent the injury.
(d) Report to President.--Not later than the date that is 30 days
after the date on which a determination is made under subsection (a)
with respect to an investigation, the Commission shall submit to the
President a report that includes--
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is affirmative,
any findings and recommendations for import relief made under
subsection (c) and an explanation of the basis for each
recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination and recommendation referred
to in paragraphs (1) and (2).
(e) Public Notice.--Upon submitting a report to the President under
subsection (d), the Commission shall promptly make public such report
(with the exception of information which the Commission determines to
be confidential) and shall cause a summary thereof to be published in
the Federal Register.
SEC. 313. PROVISION OF RELIEF.
(a) In General.--Not later than the date that is 30 days after the
date on which the President receives the report of the Commission in
which the Commission's determination under section 312(a) is
affirmative, or which contains a determination under section 312(a)
that the President considers to be affirmative under paragraph (1) of
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the
President, subject to subsection (b), shall provide relief from imports
of the article that is the subject of such determination to the extent
that the President determines necessary to remedy or prevent the injury
found by the Commission and to facilitate the efforts of the domestic
industry to make a positive adjustment to import competition.
(b) Exception.--The President is not required to provide import
relief under this section if the President determines that the
provision of the import relief will not provide greater economic and
social benefits than costs.
(c) Nature of Relief.--
(1) In general.--The import relief that the President is
authorized to provide under this section with respect to imports of
an article is as follows:
(A) The suspension of any further reduction provided for
under Annex 3.3 of the Agreement in the duty imposed on such
article.
(B) An increase in the rate of duty imposed on such article
to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed under the
HTS on like articles at the time the import relief is
provided; or
(ii) the column 1 general rate of duty imposed under
the HTS on like articles on the day before the date on
which the Agreement enters into force.
(2) Progressive liberalization.--If the period for which import
relief is provided under this section is greater than 1 year, the
President shall provide for the progressive liberalization
(described in article 8.2(2) of the Agreement) of such relief at
regular intervals during the period of its application.
(d) Period of Relief.--
(1) In general.--Subject to paragraph (2), the import relief
that the President is authorized to provide under this section,
including any extensions thereof, may not, in the aggregate, exceed
3 years.
(2) Extension.--
(A) In general.--If the initial period for any import
relief provided under this section is less than 3 years, the
President, after receiving an affirmative determination from
the Commission under subparagraph (B), may extend the effective
period of any import relief provided under this section,
subject to the limitation under paragraph (1), if the President
determines that--
(i) the import relief continues to be necessary to
remedy or prevent serious injury and to facilitate
adjustment; and
(ii) there is evidence that the industry is making a
positive adjustment to import competition.
(B) Action by commission.--(i) Upon a petition on behalf of
the industry concerned, filed with the Commission not earlier
than the date which is 9 months, and not later than the date
which is 6 months, before the date on which any action taken
under subsection (a) is to terminate, the Commission shall
conduct an investigation to determine whether action under this
section continues to be necessary to remedy or prevent serious
injury and whether there is evidence that the industry is
making a positive adjustment to import competition.
(ii) The Commission shall publish notice of the
commencement of any proceeding under this subparagraph in the
Federal Register and shall, within a reasonable time
thereafter, hold a public hearing at which the Commission shall
afford interested parties and consumers an opportunity to be
present, to present evidence, and to respond to the
presentations of other parties and consumers, and otherwise to
be heard.
(iii) The Commission shall transmit to the President a
report on its investigation and determination under this
subparagraph not later than 60 days before the action under
subsection (a) is to terminate, unless the President specifies
a different date.
(e) Rate After Termination of Import Relief.--When import relief
under this section is terminated with respect to an article--
(1) the rate of duty on that article after such termination and
on or before December 31 of the year in which such termination
occurs shall be the rate that, according to the Schedule of the
United States in Annex 3.3 of the Agreement for the staged
elimination of the tariff, would have been in effect 1 year after
the provision of relief under subsection (a); and
(2) the rate of duty for that article after December 31 of the
year in which termination occurs shall be, at the discretion of the
President, either--
(A) the applicable rate of duty for that article set out in
the Schedule of the United States in Annex 3.3 of the
Agreement; or
(B) the rate of duty resulting from the elimination of the
tariff in equal annual stages ending on the date set out in the
United States Schedule in Annex 3.3 of the Agreement for the
elimination of the tariff.
(f) Articles Exempt From Relief.--No import relief may be provided
under this section on any article subject to import relief under
chapter 1 of title II of the Trade Act of 1974.
SEC. 314. TERMINATION OF RELIEF AUTHORITY.
(a) General Rule.--No import relief may be provided under this
subtitle after the date that is 10 years after the date on which the
Agreement enters into force.
(b) Exception.--If an article for which relief is provided under
this subtitle is an article for which the period for tariff
elimination, set out in the Schedule of the United States to Annex 3.3
of the Agreement, is 12 years, no relief under this subtitle may be
provided for that article after the date that is 12 years after the
date on which the Agreement enters into force.
SEC. 315. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19 U.S.C.
2133), any import relief provided by the President under section 313
shall be treated as action taken under chapter 1 of title II of such
Act.
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8))
is amended in the first sentence--
(1) by striking ``and''; and
(2) by inserting before the period at the end ``, and title III
of the United States-Chile Free Trade Agreement Implementation
Act''.
Subtitle B--Textile and Apparel Safeguard Measures
SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.
(a) In General.--A request under this subtitle for the purpose of
adjusting to the obligations of the United States under the Agreement
may be filed with the President by an interested party. Upon the filing
of a request, the President shall review the request to determine, from
information presented in the request, whether to commence consideration
of the request.
(b) Publication of Request.--If the President determines that the
request under subsection (a) provides the information necessary for the
request to be considered, the President shall cause to be published in
the Federal Register a notice of commencement of consideration of the
request, and notice seeking public comments regarding the request. The
notice shall include the request and the dates by which comments and
rebuttals must be received.
SEC. 322. DETERMINATION AND PROVISION OF RELIEF.
(a) Determination.--
(1) In general.--If a positive determination is made under
section 321(b), the President shall determine whether, as a result
of the elimination of a duty under the Agreement, a Chilean textile
or apparel article is being imported into the United States in such
increased quantities, in absolute terms or relative to the domestic
market for that article, and under such conditions as to cause
serious damage, or actual threat thereof, to a domestic industry
producing an article that is like, or directly competitive with,
the imported article.
(2) Serious damage.--In making a determination under paragraph
(1), the President--
(A) shall examine the effect of increased imports on the
domestic industry, as reflected in changes in such relevant
economic factors as output, productivity, utilization of
capacity, inventories, market share, exports, wages,
employment, domestic prices, profits, and investment, none of
which is necessarily decisive; and
(B) shall not consider changes in technology or consumer
preference as factors supporting a determination of serious
damage or actual threat thereof.
(b) Provision of Relief.--
(1) In general.--If a determination under subsection (a) is
affirmative, the President may provide relief from imports of the
article that is the subject of such determination, as provided in
paragraph (2), to the extent that the President determines
necessary to remedy or prevent the serious damage and to facilitate
adjustment by the domestic industry.
(2) Nature of relief.--The relief that the President is
authorized to provide under this subsection with respect to imports
of an article is an increase in the rate of duty imposed on the
article to a level that does not exceed the lesser of--
(A) the column 1 general rate of duty imposed under the HTS
on like articles at the time the import relief is provided; or
(B) the column 1 general rate of duty imposed under the HTS
on like articles on the day before the date on which the
Agreement enters into force.
SEC. 323. PERIOD OF RELIEF.
(a) In General.--The import relief that the President is authorized
to provide under section 322, including any extensions thereof, may
not, in the aggregate, exceed 3 years.
(b) Extension.--If the initial period for any import relief
provided under this section is less than 3 years, the President may
extend the effective period of any import relief provided under this
section, subject to the limitation set forth in subsection (a), if the
President determines that--
(1) the import relief continues to be necessary to remedy or
prevent serious damage and to facilitate adjustment; and
(2) there is evidence that the industry is making a positive
adjustment to import competition.
SEC. 324. ARTICLES EXEMPT FROM RELIEF.
The President may not provide import relief under this subtitle
with respect to any article if import relief previously has been
provided under this subtitle with respect to that article.
SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
When import relief under this subtitle is terminated with respect
to an article, the rate of duty on that article shall be duty-free.
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 8 years after the date on which
duties on the article are eliminated pursuant to the Agreement.
SEC. 327. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19 U.S.C.
2133), any import relief provided by the President under this subtitle
shall be treated as action taken under chapter 1 of title II of that
Act.
SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.
The President may not release information 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 business confidential information is
provided, a nonconfidential version of the information shall also be
provided, in which the business confidential information is summarized
or, if necessary, deleted.
TITLE IV--TEMPORARY ENTRY OF BUSINESS PERSONS
SEC. 401. NONIMMIGRANT TRADERS AND INVESTORS.
Upon a basis of reciprocity secured by the Agreement, an alien who
is a national of Chile (and any spouse or child (as defined in section
101(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1101(b)(1)))
of such alien, if accompanying or following to join the alien) may, if
otherwise eligible for a visa and if otherwise admissible into the
United States under the Immigration and Nationality Act (8 U.S.C. 1101
et seq.), be considered to be classifiable as a nonimmigrant under
section 101(a)(15)(E) of such Act (8 U.S.C. 1101(a)(15)(E)) if entering
solely for a purpose specified in clause (i) or (ii) of such section
101(a)(15)(E). For purposes of this section, the term ``national'' has
the meaning given such term in article 14.9 of the Agreement.
SEC. 402. NONIMMIGRANT PROFESSIONALS; LABOR ATTESTATIONS.
(a) Nonimmigrant Professionals.--
(1) Definitions.--Section 101(a)(15)(H)(i)(b) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(i)(b)) is
amended by striking ``212(n)(1), or (c)'' and inserting
``212(n)(1), or (b1) who is entitled to enter the United States
under and in pursuance of the provisions of an agreement listed in
section 214(g)(8)(A), who is engaged in a specialty occupation
described in section 214(i)(3), and with respect to whom the
Secretary of Labor determines and certifies to the Secretary of
Homeland Security and the Secretary of State that the intending
employer has filed with the Secretary of Labor an attestation under
section 212(t)(1), or (c)''.
(2) Admission of nonimmigrants.--Section 214 of the Immigration
and Nationality Act (8 U.S.C. 1184) is amended--
(A) in subsection (i)--
(i) in paragraph (1), by striking ``For purposes'' and
inserting ``Except as provided in paragraph (3), for
purposes''; and
(ii) by adding at the end the following:
``(3) For purposes of section 101(a)(15)(H)(i)(b1), the term
`specialty occupation' means an occupation that requires--
``(A) theoretical and practical application of a body of
specialized knowledge; and
``(B) attainment of a bachelor's or higher degree in the
specific specialty (or its equivalent) as a minimum for entry into
the occupation in the United States.''; and
(B) in subsection (g), by adding at the end the following:
``(8)(A) The agreement referred to in section 101(a)(15)(H)(i)(b1)
is the United States-Chile Free Trade Agreement.
``(B)(i) The Secretary of Homeland Security shall establish annual
numerical limitations on approvals of initial applications by aliens
for admission under section 101(a)(15)(H)(i)(b1).
``(ii) The annual numerical limitations described in clause (i)
shall not exceed 1,400 for nationals of Chile for any fiscal year. For
purposes of this clause, the term `national' has the meaning given such
term in article 14.9 of the United States-Chile Free Trade Agreement.
``(iii) The annual numerical limitations described in clause (i)
shall only apply to principal aliens and not to the spouses or children
of such aliens.
``(iv) The annual numerical limitation described in paragraph
(1)(A) is reduced by the amount of the annual numerical limitations
established under clause (i). However, if a numerical limitation
established under clause (i) has not been exhausted at the end of a
given fiscal year, the Secretary of Homeland Security shall adjust
upwards the numerical limitation in paragraph (1)(A) for that fiscal
year by the amount remaining in the numerical limitation under clause
(i). Visas under section 101(a)(15)(H)(i)(b) may be issued pursuant to
such adjustment within the first 45 days of the next fiscal year to
aliens who had applied for such visas during the fiscal year for which
the adjustment was made.
``(C) The period of authorized admission as a nonimmigrant under
section 101(a)(15)(H)(i)(b1) shall be 1 year, and may be extended, but
only in 1-year increments. After every second extension, the next
following extension shall not be granted unless the Secretary of Labor
had determined and certified to the Secretary of Homeland Security and
the Secretary of State that the intending employer has filed with the
Secretary of Labor an attestation under section 212(t)(1) for the
purpose of permitting the nonimmigrant to obtain such extension.
``(D) The numerical limitation described in paragraph (1)(A) for a
fiscal year shall be reduced by one for each alien granted an extension
under subparagraph (C) during such year who has obtained 5 or more
consecutive prior extensions.''.
(b) Labor Attestations.--Section 212 of the Immigration and
Nationality Act (8 U.S.C. 1182) is amended--
(1) by redesignating the subsection (p) added by section
1505(f) of Public Law 106-386 (114 Stat. 1526) as subsection (s);
and
(2) by adding at the end the following:
``(t)(1) No alien may be admitted or provided status as a
nonimmigrant under section 101(a)(15)(H)(i)(b1) in an occupational
classification unless the employer has filed with the Secretary of
Labor an attestation stating the following:
``(A) The employer--
``(i) is offering and will offer during the period of
authorized employment to aliens admitted or provided status
under section 101(a)(15)(H)(i)(b1) wages that are at least--
``(I) the actual wage level paid by the employer to all
other individuals with similar experience and
qualifications for the specific employment in question; or
``(II) the prevailing wage level for the occupational
classification in the area of employment,
whichever is greater, based on the best information available
as of the time of filing the attestation; and
``(ii) will provide working conditions for such a
nonimmigrant that will not adversely affect the working
conditions of workers similarly employed.
``(B) There is not a strike or lockout in the course of a labor
dispute in the occupational classification at the place of
employment.
``(C) The employer, at the time of filing the attestation--
``(i) has provided notice of the filing under this
paragraph to the bargaining representative (if any) of the
employer's employees in the occupational classification and
area for which aliens are sought; or
``(ii) if there is no such bargaining representative, has
provided notice of filing in the occupational classification
through such methods as physical posting in conspicuous
locations at the place of employment or electronic notification
to employees in the occupational classification for which
nonimmigrants under section 101(a)(15)(H)(i)(b1) are sought.
``(D) A specification of the number of workers sought, the
occupational classification in which the workers will be employed,
and wage rate and conditions under which they will be employed.
``(2)(A) The employer shall make available for public examination,
within one working day after the date on which an attestation under
this subsection is filed, at the employer's principal place of business
or worksite, a copy of each such attestation (and such accompanying
documents as are necessary).
``(B)(i) The Secretary of Labor shall compile, on a current basis,
a list (by employer and by occupational classification) of the
attestations filed under this subsection. Such list shall include, with
respect to each attestation, the wage rate, number of aliens sought,
period of intended employment, and date of need.
``(ii) The Secretary of Labor shall make such list available for
public examination in Washington, D.C.
``(C) The Secretary of Labor shall review an attestation filed
under this subsection only for completeness and obvious inaccuracies.
Unless the Secretary of Labor finds that an attestation is incomplete
or obviously inaccurate, the Secretary of Labor shall provide the
certification described in section 101(a)(15)(H)(i)(b1) within 7 days
of the date of the filing of the attestation.
``(3)(A) The Secretary of Labor shall establish a process for the
receipt, investigation, and disposition of complaints respecting the
failure of an employer to meet a condition specified in an attestation
submitted under this subsection or misrepresentation by the employer of
material facts in such an attestation. Complaints may be filed by any
aggrieved person or organization (including bargaining
representatives). No investigation or hearing shall be conducted on a
complaint concerning such a failure or misrepresentation unless the
complaint was filed not later than 12 months after the date of the
failure or misrepresentation, respectively. The Secretary of Labor
shall conduct an investigation under this paragraph if there is
reasonable cause to believe that such a failure or misrepresentation
has occurred.
``(B) Under the process described in subparagraph (A), the
Secretary of Labor shall provide, within 30 days after the date a
complaint is filed, for a determination as to whether or not a
reasonable basis exists to make a finding described in subparagraph
(C). If the Secretary of Labor determines that such a reasonable basis
exists, the Secretary of Labor shall provide for notice of such
determination to the interested parties and an opportunity for a
hearing on the complaint, in accordance with section 556 of title 5,
United States Code, within 60 days after the date of the determination.
If such a hearing is requested, the Secretary of Labor shall make a
finding concerning the matter by not later than 60 days after the date
of the hearing. In the case of similar complaints respecting the same
applicant, the Secretary of Labor may consolidate the hearings under
this subparagraph on such complaints.
``(C)(i) If the Secretary of Labor finds, after notice and
opportunity for a hearing, a failure to meet a condition of paragraph
(1)(B), a substantial failure to meet a condition of paragraph (1)(C)
or (1)(D), or a misrepresentation of material fact in an attestation--
``(I) the Secretary of Labor shall notify the Secretary of
State and the Secretary of Homeland Security of such finding and
may, in addition, impose such other administrative remedies
(including civil monetary penalties in an amount not to exceed
$1,000 per violation) as the Secretary of Labor determines to be
appropriate; and
``(II) the Secretary of State or the Secretary of Homeland
Security, as appropriate, shall not approve petitions or
applications filed with respect to that employer under section 204,
214(c), or 101(a)(15)(H)(i)(b1) during a period of at least 1 year
for aliens to be employed by the employer.
``(ii) If the Secretary of Labor finds, after notice and
opportunity for a hearing, a willful failure to meet a condition of
paragraph (1), a willful misrepresentation of material fact in an
attestation, or a violation of clause (iv)--
``(I) the Secretary of Labor shall notify the Secretary of
State and the Secretary of Homeland Security of such finding and
may, in addition, impose such other administrative remedies
(including civil monetary penalties in an amount not to exceed
$5,000 per violation) as the Secretary of Labor determines to be
appropriate; and
``(II) the Secretary of State or the Secretary of Homeland
Security, as appropriate, shall not approve petitions or
applications filed with respect to that employer under section 204,
214(c), or 101(a)(15)(H)(i)(b1) during a period of at least 2 years
for aliens to be employed by the employer.
``(iii) If the Secretary of Labor finds, after notice and
opportunity for a hearing, a willful failure to meet a condition of
paragraph (1) or a willful misrepresentation of material fact in an
attestation, in the course of which failure or misrepresentation the
employer displaced a United States worker employed by the employer
within the period beginning 90 days before and ending 90 days after the
date of filing of any visa petition or application supported by the
attestation--
``(I) the Secretary of Labor shall notify the Secretary of
State and the Secretary of Homeland Security of such finding and
may, in addition, impose such other administrative remedies
(including civil monetary penalties in an amount not to exceed
$35,000 per violation) as the Secretary of Labor determines to be
appropriate; and
``(II) the Secretary of State or the Secretary of Homeland
Security, as appropriate, shall not approve petitions or
applications filed with respect to that employer under section 204,
214(c), or 101(a)(15)(H)(i)(b1) during a period of at least 3 years
for aliens to be employed by the employer.
``(iv) It is a violation of this clause for an employer who has
filed an attestation under this subsection to intimidate, threaten,
restrain, coerce, blacklist, discharge, or in any other manner
discriminate against an employee (which term, for purposes of this
clause, includes a former employee and an applicant for employment)
because the employee has disclosed information to the employer, or to
any other person, that the employee reasonably believes evidences a
violation of this subsection, or any rule or regulation pertaining to
this subsection, or because the employee cooperates or seeks to
cooperate in an investigation or other proceeding concerning the
employer's compliance with the requirements of this subsection or any
rule or regulation pertaining to this subsection.
``(v) The Secretary of Labor and the Secretary of Homeland Security
shall devise a process under which a nonimmigrant under section
101(a)(15)(H)(i)(b1) who files a complaint regarding a violation of
clause (iv) and is otherwise eligible to remain and work in the United
States may be allowed to seek other appropriate employment in the
United States for a period not to exceed the maximum period of stay
authorized for such nonimmigrant classification.
``(vi)(I) It is a violation of this clause for an employer who has
filed an attestation under this subsection to require a nonimmigrant
under section 101(a)(15)(H)(i)(b1) to pay a penalty for ceasing
employment with the employer prior to a date agreed to by the
nonimmigrant and the employer. The Secretary of Labor shall determine
whether a required payment is a penalty (and not liquidated damages)
pursuant to relevant State law.
``(II) If the Secretary of Labor finds, after notice and
opportunity for a hearing, that an employer has committed a violation
of this clause, the Secretary of Labor may impose a civil monetary
penalty of $1,000 for each such violation and issue an administrative
order requiring the return to the nonimmigrant of any amount paid in
violation of this clause, or, if the nonimmigrant cannot be located,
requiring payment of any such amount to the general fund of the
Treasury.
``(vii)(I) It is a failure to meet a condition of paragraph (1)(A)
for an employer who has filed an attestation under this subsection and
who places a nonimmigrant under section 101(a)(15)(H)(i)(b1) designated
as a full-time employee in the attestation, after the nonimmigrant has
entered into employment with the employer, in nonproductive status due
to a decision by the employer (based on factors such as lack of work),
or due to the nonimmigrant's lack of a permit or license, to fail to
pay the nonimmigrant full-time wages in accordance with paragraph
(1)(A) for all such nonproductive time.
``(II) It is a failure to meet a condition of paragraph (1)(A) for
an employer who has filed an attestation under this subsection and who
places a nonimmigrant under section 101(a)(15)(H)(i)(b1) designated as
a part-time employee in the attestation, after the nonimmigrant has
entered into employment with the employer, in nonproductive status
under circumstances described in subclause (I), to fail to pay such a
nonimmigrant for such hours as are designated on the attestation
consistent with the rate of pay identified on the attestation.
``(III) In the case of a nonimmigrant under section
101(a)(15)(H)(i)(b1) who has not yet entered into employment with an
employer who has had approved an attestation under this subsection with
respect to the nonimmigrant, the provisions of subclauses (I) and (II)
shall apply to the employer beginning 30 days after the date the
nonimmigrant first is admitted into the United States, or 60 days after
the date the nonimmigrant becomes eligible to work for the employer in
the case of a nonimmigrant who is present in the United States on the
date of the approval of the attestation filed with the Secretary of
Labor.
``(IV) This clause does not apply to a failure to pay wages to a
nonimmigrant under section 101(a)(15)(H)(i)(b1) for nonproductive time
due to non-work-related factors, such as the voluntary request of the
nonimmigrant for an absence or circumstances rendering the nonimmigrant
unable to work.
``(V) This clause shall not be construed as prohibiting an employer
that is a school or other educational institution from applying to a
nonimmigrant under section 101(a)(15)(H)(i)(b1) an established salary
practice of the employer, under which the employer pays to
nonimmigrants under section 101(a)(15)(H)(i)(b1) and United States
workers in the same occupational classification an annual salary in
disbursements over fewer than 12 months, if--
``(aa) the nonimmigrant agrees to the compressed annual salary
payments prior to the commencement of the employment; and
``(bb) the application of the salary practice to the
nonimmigrant does not otherwise cause the nonimmigrant to violate
any condition of the nonimmigrant's authorization under this Act to
remain in the United States.
``(VI) This clause shall not be construed as superseding clause
(viii).
``(viii) It is a failure to meet a condition of paragraph (1)(A)
for an employer who has filed an attestation under this subsection to
fail to offer to a nonimmigrant under section 101(a)(15)(H)(i)(b1),
during the nonimmigrant's period of authorized employment, benefits and
eligibility for benefits (including the opportunity to participate in
health, life, disability, and other insurance plans; the opportunity to
participate in retirement and savings plans; and cash bonuses and non-
cash compensation, such as stock options (whether or not based on
performance)) on the same basis, and in accordance with the same
criteria, as the employer offers to United States workers.
``(D) If the Secretary of Labor finds, after notice and opportunity
for a hearing, that an employer has not paid wages at the wage level
specified in the attestation and required under paragraph (1), the
Secretary of Labor shall order the employer to provide for payment of
such amounts of back pay as may be required to comply with the
requirements of paragraph (1), whether or not a penalty under
subparagraph (C) has been imposed.
``(E) The Secretary of Labor may, on a case-by-case basis, subject
an employer to random investigations for a period of up to 5 years,
beginning on the date on which the employer is found by the Secretary
of Labor to have committed a willful failure to meet a condition of
paragraph (1) or to have made a willful misrepresentation of material
fact in an attestation. The authority of the Secretary of Labor under
this subparagraph shall not be construed to be subject to, or limited
by, the requirements of subparagraph (A).
``(F) Nothing in this subsection shall be construed as superseding
or preempting any other enforcement-related authority under this Act
(such as the authorities under section 274B), or any other Act.
``(4) For purposes of this subsection:
``(A) The term `area of employment' means the area within
normal commuting distance of the worksite or physical location
where the work of the nonimmigrant under section
101(a)(15)(H)(i)(b1) is or will be performed. If such worksite or
location is within a Metropolitan Statistical Area, any place
within such area is deemed to be within the area of employment.
``(B) In the case of an attestation with respect to one or more
nonimmigrants under section 101(a)(15)(H)(i)(b1) by an employer,
the employer is considered to `displace' a United States worker
from a job if the employer lays off the worker from a job that is
essentially the equivalent of the job for which the nonimmigrant or
nonimmigrants is or are sought. A job shall not be considered to be
essentially equivalent of another job unless it involves
essentially the same responsibilities, was held by a United States
worker with substantially equivalent qualifications and experience,
and is located in the same area of employment as the other job.
``(C)(i) The term `lays off', with respect to a worker--
``(I) means to cause the worker's loss of employment, other
than through a discharge for inadequate performance, violation
of workplace rules, cause, voluntary departure, voluntary
retirement, or the expiration of a grant or contract; but
``(II) does not include any situation in which the worker
is offered, as an alternative to such loss of employment, a
similar employment opportunity with the same employer at
equivalent or higher compensation and benefits than the
position from which the employee was discharged, regardless of
whether or not the employee accepts the offer.
``(ii) Nothing in this subparagraph is intended to limit an
employee's rights under a collective bargaining agreement or other
employment contract.
``(D) The term `United States worker' means an employee who--
``(i) is a citizen or national of the United States; or
``(ii) is an alien who is lawfully admitted for permanent
residence, is admitted as a refugee under section 207 of this
title, is granted asylum under section 208, or is an immigrant
otherwise authorized, by this Act or by the Secretary of
Homeland Security, to be employed.''.
(c) Special Rule for Computation of Prevailing Wage.--Section
212(p)(1) of the Immigration and Nationality Act (8 U.S.C. 1182(p)(1))
is amended by striking ``(n)(1)(A)(i)(II) and (a)(5)(A)'' and inserting
``(a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II)''.
(d) Fee.--
(1) In general.--Section 214(c) of the Immigration and
Nationality Act (8 U.S.C. 1184(c)) is amended by adding at the end
the following:
``(11)(A) Subject to subparagraph (B), the Secretary of Homeland
Security or the Secretary of State, as appropriate, shall impose a fee
on an employer who has filed an attestation described in section
212(t)--
``(i) in order that an alien may be initially granted
nonimmigrant status described in section 101(a)(15)(H)(i)(b1); or
``(ii) in order to satisfy the requirement of the second
sentence of subsection (g)(8)(C) for an alien having such status to
obtain certain extensions of stay.
``(B) The amount of the fee shall be the same as the amount imposed
by the Secretary of Homeland Security under paragraph (9), except that
if such paragraph does not authorize such Secretary to impose any fee,
no fee shall be imposed under this paragraph.
``(C) Fees collected under this paragraph shall be deposited in the
Treasury in accordance with section 286(s).''.
(2) Use of fee.--Section 286(s)(1) of the Immigration and
Nationality Act (8 U.S.C. 1356(s)(1)) is amended by striking
``section 214(c)(9).'' and inserting ``paragraphs (9) and (11) of
section 214(c).''.
SEC. 403. LABOR DISPUTES.
Section 214(j) of the Immigration and Nationality Act (8 U.S.C.
1184(j)) is amended--
(1) by striking ``(j)'' and inserting ``(j)(1)'';
(2) by striking ``this subsection'' each place such term
appears and inserting ``this paragraph''; and
(3) by adding at the end the following:
``(2) Notwithstanding any other provision of this Act except
section 212(t)(1), and subject to regulations promulgated by the
Secretary of Homeland Security, an alien who seeks to enter the United
States under and pursuant to the provisions of an agreement listed in
subsection (g)(8)(A), and the spouse and children of such an alien if
accompanying or following to join the alien, may be denied admission as
a nonimmigrant under subparagraph (E), (L), or (H)(i)(b1) of section
101(a)(15) if there is in progress a labor dispute in the occupational
classification at the place or intended place of employment, unless
such alien establishes, pursuant to regulations promulgated by the
Secretary of Homeland Security after consultation with the Secretary of
Labor, that the alien's entry will not affect adversely the settlement
of the labor dispute or the employment of any person who is involved in
the labor dispute. Notice of a determination under this paragraph shall
be given as may be required by such agreement.''.
SEC. 404. CONFORMING AMENDMENTS.
Section 214 of the Immigration and Nationality Act (8 U.S.C. 1184)
is amended--
(1) in subsection (b), by striking ``(other than a nonimmigrant
described in subparagraph (H)(i), (L), or (V) of section
101(a)(15))'' and inserting ``(other than a nonimmigrant described
in subparagraph (L) or (V) of section 101(a)(15), and other than a
nonimmigrant described in any provision of section 101(a)(15)(H)(i)
except subclause (b1) of such section)'';
(2) in subsection (c)(1), by striking ``section 101(a)(15)(H),
(L), (O), or (P)(i)'' and inserting ``subparagraph (H), (L), (O),
or (P)(i) of section 101(a)(15) (excluding nonimmigrants under
section 101(a)(15)(H)(i)(b1))''; and
(3) in subsection (h), by striking ``(H)(i)'' and inserting
``(H)(i)(b) or (c)''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.