[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1416 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1416

       To implement the United States-Chile Free Trade Agreement.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 15, 2003

  Mr. Grassley (for himself, Mr. Baucus, and Mr. Frist) (by request) 
   introduced the following bill; which was read twice and referred 
  jointly pursuant to section 2103(b)(3) of Public Law 107-210 to the 
                Committees on Finance and the Judiciary

_______________________________________________________________________

                                 A BILL


 
       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.--

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 two 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 =  ------------  x  100
                                   AV
------------------------------------------------------------------------
 

                    (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 =  ------------  x  100
                                   AV
------------------------------------------------------------------------
 

                    (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)''.

                                 <all>