[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3045 Enrolled Bill (ENR)]


        H.R.3045

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
            the fourth day of January, two thousand and five


                                 An Act


 
 To implement the Dominican Republic-Central America-United States Free 
                            Trade Agreement.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Dominican 
Republic-Central America-United States Free Trade Agreement 
Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; table of contents.
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. Implementing actions in anticipation of entry into force and 
          initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date 
          of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Retroactive application for certain liquidations and 
          reliquidations of textile or apparel goods.
Sec. 206. Disclosure of incorrect information; false certifications of 
          origin; denial of preferential tariff treatment.
Sec. 207. Reliquidation of entries.
Sec. 208. Recordkeeping requirements.
Sec. 209. Enforcement relating to trade in textile or apparel goods.
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. Confidential business information.

        Subtitle C--Cases Under Title II of the Trade Act of 1974

Sec. 331. Findings and action on goods of CAFTA-DR countries.

                         TITLE IV--MISCELLANEOUS

Sec. 401. Eligible products.
Sec. 402. Modifications to the Caribbean Basin Economic Recovery Act.
Sec. 403. Periodic reports and meetings on labor obligations and labor 
          capacity-building provisions.

SEC. 2. PURPOSES.

    The purposes of this Act are--
        (1) to approve and implement the Free Trade Agreement between 
    the United States, Costa Rica, the Dominican Republic, El Salvador, 
    Guatemala, Honduras, and Nicaragua entered into under the authority 
    of section 2103(b) of the Bipartisan Trade Promotion Authority Act 
    of 2002 (19 U.S.C. 3803(b));
        (2) to strengthen and develop economic relations between the 
    United States, Costa Rica, the Dominican Republic, El Salvador, 
    Guatemala, Honduras, and Nicaragua for their mutual benefit;
        (3) to establish free trade between the United States, Costa 
    Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and 
    Nicaragua through the reduction and elimination of barriers to 
    trade in goods and services and to investment; and
        (4) to lay the foundation for further cooperation to expand and 
    enhance the benefits of the Agreement.

SEC. 3. DEFINITIONS.

    In this Act:
        (1) Agreement.--The term ``Agreement'' means the Dominican 
    Republic-Central America-United States Free Trade Agreement 
    approved by the Congress under section 101(a)(1).
        (2) CAFTA-DR country.--Except as provided in section 203, the 
    term ``CAFTA-DR country'' means--
            (A) Costa Rica, for such time as the Agreement is in force 
        between the United States and Costa Rica;
            (B) the Dominican Republic, for such time as the Agreement 
        is in force between the United States and the Dominican 
        Republic;
            (C) El Salvador, for such time as the Agreement is in force 
        between the United States and El Salvador;
            (D) Guatemala, for such time as the Agreement is in force 
        between the United States and Guatemala;
            (E) Honduras, for such time as the Agreement is in force 
        between the United States and Honduras; and
            (F) Nicaragua, for such time as the Agreement is in force 
        between the United States and Nicaragua.
        (3) Commission.--The term ``Commission'' means the United 
    States International Trade Commission.
        (4) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule 
    of the United States.
        (5) Textile or apparel good.--The term ``textile or apparel 
    good'' means a good listed in the Annex to the Agreement on 
    Textiles and Clothing referred to in section 101(d)(4) of the 
    Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other than a 
    good listed in Annex 3.29 of the Agreement.

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.

    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority 
Act of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 
(19 U.S.C. 2191), the Congress approves--
        (1) the Dominican Republic-Central America-United States Free 
    Trade Agreement entered into on August 5, 2004, with the 
    Governments of Costa Rica, the Dominican Republic, El Salvador, 
    Guatemala, Honduras, and Nicaragua, and submitted to the Congress 
    on June 23, 2005; and
        (2) the statement of administrative action proposed to 
    implement the Agreement that was submitted to the Congress on June 
    23, 2005.
    (b) Conditions for Entry Into force of the Agreement.--At such time 
as the President determines that countries listed in subsection (a)(1) 
have taken measures necessary to comply with the provisions of the 
Agreement that are to take effect on the date on which the Agreement 
enters into force, the President is authorized to provide for the 
Agreement to enter into force with respect to those countries that 
provide for the Agreement to enter into force for them.

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.

    (a) Relationship of Agreement to United States Law.--
        (1) United states law to prevail in conflict.--No provision of 
    the Agreement, nor the application of any such provision to any 
    person or circumstance, which is inconsistent with any law of the 
    United States shall have effect.
        (2) Construction.--Nothing in this Act shall be construed--
            (A) to amend or modify any law of the United States, or
            (B) to limit any authority conferred under any law of the 
        United States,
    unless specifically provided for in this Act.
    (b) Relationship of Agreement to State Law.--
        (1) Legal challenge.--No State law, or the application thereof, 
    may be declared invalid as to any person or circumstance on the 
    ground that the provision or application is inconsistent with the 
    Agreement, except in an action brought by the United States for the 
    purpose of declaring such law or application invalid.
        (2) Definition of state law.--For purposes of this subsection, 
    the term ``State law'' includes--
            (A) any law of a political subdivision of a State; and
            (B) any State law regulating or taxing the business of 
        insurance.
    (c) Effect of Agreement With Respect to Private Remedies.--No 
person other than the United States--
        (1) shall have any cause of action or defense under the 
    Agreement or by virtue of congressional approval thereof; or
        (2) may challenge, in any action brought under any provision of 
    law, any action or inaction by any department, agency, or other 
    instrumentality of the United States, any State, or any political 
    subdivision of a State, on the ground that such action or inaction 
    is inconsistent with the Agreement.

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND 
              INITIAL REGULATIONS.

    (a) Implementing Actions.--
        (1) Proclamation authority.--After the date of the enactment of 
    this Act--
            (A) the President may proclaim such actions, and
            (B) other appropriate officers of the United States 
        Government may issue such regulations,
    as may be necessary to ensure that any provision of this Act, or 
    amendment made by this Act, that takes effect on the date the 
    Agreement enters into force is appropriately implemented on such 
    date, but no such proclamation or regulation may have an effective 
    date earlier than the date the Agreement enters into force.
        (2) Effective date of certain proclaimed actions.--Any action 
    proclaimed by the President under the authority of this Act that is 
    not subject to the consultation and layover provisions under 
    section 104 may not take effect before the 15th day after the date 
    on which the text of the proclamation is published in the Federal 
    Register.
        (3) Waiver of 15-day restriction.--The 15-day restriction 
    contained in paragraph (2) on the taking effect of proclaimed 
    actions is waived to the extent that the application of such 
    restriction would prevent the taking effect on the date the 
    Agreement enters into force of any action proclaimed under this 
    section.
    (b) Initial Regulations.--Initial regulations necessary or 
appropriate to carry out the actions required by or authorized under 
this Act or proposed in the statement of administrative action 
submitted under section 101(a)(2) to implement the Agreement shall, to 
the maximum extent feasible, be issued within 1 year after the date on 
which the Agreement enters into force. In the case of any implementing 
action that takes effect on a date after the date on which the 
Agreement enters into force, initial regulations to carry out that 
action shall, to the maximum extent feasible, be issued within 1 year 
after such effective date.

SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE 
              OF, PROCLAIMED ACTIONS.

    If a provision of this Act provides that the implementation of an 
action by the President by proclamation is subject to the consultation 
and layover requirements of this section, such action may be proclaimed 
only if--
        (1) the President has obtained advice regarding the proposed 
    action from--
            (A) the appropriate advisory committees established under 
        section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
            (B) the Commission;
        (2) the President has submitted to the Committee on Finance of 
    the Senate and the Committee on Ways and Means of the House of 
    Representatives a report that sets forth--
            (A) the action proposed to be proclaimed and the reasons 
        therefor; and
            (B) the advice obtained under paragraph (1);
        (3) a period of 60 calendar days, beginning on the first day on 
    which the requirements set forth in paragraphs (1) and (2) have 
    been met has expired; and
        (4) the President has consulted with such Committees regarding 
    the proposed action during the period referred to in paragraph (3).

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

    (a) Establishment or Designation of Office.--The President is 
authorized to establish or designate within the Department of Commerce 
an office that shall be responsible for providing administrative 
assistance to panels established under chapter 20 of the Agreement. The 
office may not be considered to be an agency for purposes of section 
552 of title 5, United States Code.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 2005 to the 
Department of Commerce such sums as may be necessary for the 
establishment and operations of the office established or designated 
under subsection (a) and for the payment of the United States share of 
the expenses of panels established under chapter 20 of the Agreement.

SEC. 106. ARBITRATION OF CLAIMS.

    The United States is authorized to resolve any claim against the 
United States covered by article 10.16.1(a)(i)(C) or article 
10.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 
Dispute Settlement procedures set forth in section B of chapter 10 of 
the Agreement.

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the 
provisions of this Act and the amendments made by this Act take effect 
on the date the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on 
the date of the enactment of this Act.
    (c) Termination of CAFTA-DR Status.--During any period in which a 
country ceases to be a CAFTA-DR country, the provisions of this Act 
(other than this subsection) and the amendments made by this Act shall 
cease to have effect with respect to that country.
    (d) Termination of the Agreement.--On the date on which the 
Agreement ceases to be in force with respect to the United States, the 
provisions of this Act (other than this subsection) and the amendments 
made by this Act shall cease to have effect.

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--
        (1) Proclamation authority.--The President may proclaim--
            (A) such modifications or continuation of any duty,
            (B) such continuation of duty-free or excise treatment, or
            (C) such additional duties,
    as the President determines to be necessary or appropriate to carry 
    out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, and 3.28, 
    and Annexes 3.3, 3.27, and 3.28 of the Agreement.
        (2) Effect on gsp status.--Notwithstanding section 502(a)(1) of 
    the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the President shall 
    terminate the designation of each CAFTA-DR country as a beneficiary 
    developing country for purposes of title V of the Trade Act of 1974 
    on the date the Agreement enters into force with respect to that 
    country.
        (3) Effect on cbera status.--
            (A) In general.--Notwithstanding section 212(a) of the 
        Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)), the 
        President shall terminate the designation of each CAFTA-DR 
        country as a beneficiary country for purposes of that Act on 
        the date the Agreement enters into force with respect to that 
        country.
            (B) Exception.--Notwithstanding subparagraph (A), each such 
        country shall be considered a beneficiary country under section 
        212(a) of the Caribbean Basin Economic Recovery Act, for 
        purposes of--
                (i) sections 771(7)(G)(ii)(III) and 771(7)(H) of the 
            Tariff Act of 1930 (19 U.S.C. 1677(7)(G)(ii)(III) and 
            1677(7)(H));
                (ii) the duty-free treatment provided under paragraph 
            12 of Appendix I of the General Notes to the Schedule of 
            the United States to Annex 3.3 of the Agreement; and
                (iii) section 274(h)(6)(B) of the Internal Revenue Code 
            of 1986.
    (b) Other Tariff Modifications.--Subject to the consultation and 
layover provisions of section 104, the President may proclaim--
        (1) such modifications or continuation of any duty,
        (2) such modifications as the United States may agree to with a 
    CAFTA-DR country regarding the staging of any duty treatment set 
    forth in Annex 3.3 of the Agreement,
        (3) such continuation of duty-free or excise treatment, or
        (4) such additional duties,
as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections 
(a) and (b), with respect to any good for which the base rate in the 
Schedule of the United States to Annex 3.3 of the Agreement is a 
specific or compound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President determines to be 
equivalent to the base rate.

SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

    (a) General Provisions.--
        (1) Applicability of subsection.--This subsection applies to 
    additional duties assessed under subsection (b).
        (2) Applicable ntr (mfn) rate of duty.--For purposes of 
    subsection (b), the term ``applicable NTR (MFN) rate of duty'' 
    means, with respect to a safeguard good, a rate of duty that is the 
    lesser of--
            (A) the column 1 general rate of duty that would, at the 
        time the additional duty is imposed under subsection (b), apply 
        to a good classifiable in the same 8-digit subheading of the 
        HTS as the safeguard good; or
            (B) the column 1 general rate of duty that would, on the 
        day before the date on which the Agreement enters into force, 
        apply to a good classifiable in the same 8-digit subheading of 
        the HTS as the safeguard good.
        (3) Schedule rate of duty.--For purposes of subsection (b), the 
    term ``schedule rate of duty'' means, with respect to a safeguard 
    good, the rate of duty for that good that is set out in the 
    Schedule of the United States to Annex 3.3 of the Agreement.
        (4) Safeguard good.--In this section, the term ``safeguard 
    good'' means a good--
            (A) that is included in the Schedule of the United States 
        to Annex 3.15 of the Agreement;
            (B) that qualifies as an originating good under section 
        203, except that operations performed in or material obtained 
        from the United States shall be considered as if the operations 
        were performed in, and the material was obtained from, a 
        country that is not a party to the Agreement; and
            (C) for which a claim for preferential tariff treatment 
        under the Agreement has been made.
        (5) Exceptions.--No additional duty shall be assessed on a good 
    under subsection (b) if, at the time of entry, the good is subject 
    to import relief under--
            (A) subtitle A of title III of this Act; or
            (B) chapter 1 of title II of the Trade Act of 1974 (19 
        U.S.C. 2251 et seq.).
        (6) Termination.--The assessment of an additional duty on a 
    good under subsection (b) shall cease to apply to that good on the 
    date on which duty-free treatment must be provided to that good 
    under the Schedule of the United States to Annex 3.3 of the 
    Agreement.
        (7) Notice.--Not later than 60 days after the Secretary of the 
    Treasury first assesses an additional duty in a calendar year on a 
    good under subsection (b), the Secretary shall notify the country 
    whose good is subject to the additional duty in writing of such 
    action and shall provide to that country data supporting the 
    assessment of the additional duty.
    (b) Additional Duties on Safeguard Goods.--
        (1) In general.--In addition to any duty proclaimed under 
    subsection (a) or (b) of section 201, and subject to subsection 
    (a), the Secretary of the Treasury shall assess a duty, in the 
    amount determined under paragraph (2), on a safeguard good of a 
    CAFTA-DR country imported into the United States in a calendar year 
    if the Secretary determines that, prior to such importation, the 
    total volume of that safeguard good of such country that is 
    imported into the United States in that calendar year exceeds 130 
    percent of the volume that is set out for that safeguard good in 
    the corresponding year in the table for that country contained in 
    Appendix I of the General Notes to the Schedule of the United 
    States to Annex 3.3 of the Agreement. For purposes of this 
    subsection, year 1 in that table corresponds to the calendar year 
    in which the Agreement enters into force.
        (2) Calculation of additional duty.--The additional duty on a 
    safeguard good under this subsection shall be--
            (A) in the case of a good classified under subheading 
        1202.10.80, 1202.20.80, 2008.11.15, 2008.11.35, or 2008.11.60 
        of the HTS--
                (i) in years 1 through 5, an amount equal to 100 
            percent of the excess of the applicable NTR (MFN) rate of 
            duty over the schedule rate of duty;
                (ii) in years 6 through 10, an amount equal to 75 
            percent of the excess of the applicable NTR (MFN) rate of 
            duty over the schedule rate of duty; and
                (iii) in years 11 through 14, an amount equal to 50 
            percent of the excess of the applicable NTR (MFN) rate of 
            duty over the schedule rate of duty; and
            (B) in the case of any other safeguard good--
                (i) in years 1 through 14, an amount equal to 100 
            percent of the excess of the applicable NTR (MFN) rate of 
            duty over the schedule rate of duty;
                (ii) in years 15 through 17, an amount equal to 75 
            percent of the excess of the applicable NTR (MFN) rate of 
            duty over the schedule rate of duty; and
                (iii) in years 18 and 19, an amount equal to 50 percent 
            of the excess of the applicable NTR (MFN) rate of duty over 
            the schedule rate of duty.

SEC. 203. RULES OF ORIGIN.

    (a) Application and Interpretation.--In this section:
        (1) Tariff classification.--The basis for any tariff 
    classification is the HTS.
        (2) Reference to hts.--Whenever in this section there is a 
    reference to a chapter, heading, or subheading, such reference 
    shall be a reference to a chapter, heading, or subheading of the 
    HTS.
        (3) Cost or value.--Any cost or value referred to in this 
    section shall be recorded and maintained in accordance with the 
    generally accepted accounting principles applicable in the 
    territory of the country in which the good is produced (whether the 
    United States or another CAFTA-DR country).
    (b) Originating Goods.--For purposes of this Act and for purposes 
of implementing the preferential tariff treatment provided for under 
the Agreement, except as otherwise provided in this section, a good is 
an originating good if--
        (1) the good is a good wholly obtained or produced entirely in 
    the territory of one or more of the CAFTA-DR countries;
        (2) the good--
            (A) is produced entirely in the territory of one or more of 
        the CAFTA-DR countries, and--
                (i) each of the nonoriginating materials used in the 
            production of the good undergoes an applicable change in 
            tariff classification specified in Annex 4.1 of the 
            Agreement; or
                (ii) the good otherwise satisfies any applicable 
            regional value-content or other requirements specified in 
            Annex 4.1 of the Agreement; and
            (B) satisfies all other applicable requirements of this 
        section; or
        (3) the good is produced entirely in the territory of one or 
    more of the CAFTA-DR countries, exclusively from materials 
    described in paragraph (1) or (2).
    (c) Regional Value-Content.--
        (1) In general.--For purposes of subsection (b)(2), the 
    regional value-content of a good referred to in Annex 4.1 of the 
    Agreement, except for goods to which paragraph (4) applies, shall 
    be calculated by the importer, exporter, or producer of the good, 
    on the basis of the build-down method described in paragraph (2) or 
    the build-up method described in paragraph (3).
        (2) Build-down method.--
            (A) In general.--The regional value-content of a good may 
        be calculated on the basis of the following build-down method:

                                       av-vnm

                            rvc = -------- <greek-e> 100

                                         av

            (B) Definitions.--In subparagraph (A):
                (i) RVC.--The term ``RVC'' means the regional value-
            content of the good, expressed as a percentage.
                (ii) AV.--The term ``AV'' means the adjusted value of 
            the good.
                (iii) VNM.--The term ``VNM'' means the value of 
            nonoriginating materials that are acquired and used by the 
            producer in the production of the good, but does not 
            include the value of a material that is self-produced.
        (3) Build-up method.--
            (A) In general.--The regional value-content of a good may 
        be calculated on the basis of the following build-up method:

                                         vom

                             rvc = -------- <greek-e> 100

                                         av

            (B) Definitions.--In subparagraph (A):
                (i) RVC.--The term ``RVC'' means the regional value-
            content of the good, expressed as a percentage.
                (ii) AV.--The term ``AV'' means the adjusted value of 
            the good.
                (iii) VOM.--The term ``VOM'' means the value of 
            originating materials that are acquired or self-produced, 
            and used by the producer in the production of the good.
        (4) Special rule for certain automotive goods.--
            (A) In general.--For purposes of subsection (b)(2), the 
        regional value-content of an automotive good referred to in 
        Annex 4.1 of the Agreement may be calculated by the importer, 
        exporter, or producer of the good, on the basis of the 
        following net cost method:

                                       nc-vnm

                            rvc = -------- <greek-e> 100

                                         nc

            (B) Definitions.--In subparagraph (A):
                (i) Automotive good.--The term ``automotive good'' 
            means a good provided for in any of subheadings 8407.31 
            through 8407.34, subheading 8408.20, heading 8409, or in 
            any of headings 8701 through 8708.
                (ii) RVC.--The term ``RVC'' means the regional value-
            content of the automotive good, expressed as a percentage.
                (iii) NC.--The term ``NC'' means the net cost of the 
            automotive good.
                (iv) VNM.--The term ``VNM'' means the value of 
            nonoriginating materials that are acquired and used by the 
            producer in the production of the automotive good, but does 
            not include the value of a material that is self-produced.
            (C) Motor vehicles.--
                (i) Basis of calculation.--For purposes of determining 
            the regional value-content under subparagraph (A) for an 
            automotive good that is a motor vehicle provided for in any 
            of headings 8701 through 8705, an importer, exporter, or 
            producer may average the amounts calculated under the 
            formula contained in subparagraph (A), over the producer's 
            fiscal year--

                    (I) with respect to all motor vehicles in any 1 of 
                the categories described in clause (ii); or
                    (II) with respect to all motor vehicles in any such 
                category that are exported to the territory of one or 
                more of the CAFTA-DR countries.

                (ii) Categories.--A category is described in this 
            clause if it--

                    (I) is the same model line of motor vehicles, is in 
                the same class of vehicles, and is produced in the same 
                plant in the territory of a CAFTA-DR country, as the 
                good described in clause (i) for which regional value-
                content is being calculated;
                    (II) is the same class of motor vehicles, and is 
                produced in the same plant in the territory of a CAFTA-
                DR country, as the good described in clause (i) for 
                which regional value-content is being calculated; or
                    (III) is the same model line of motor vehicles 
                produced in the territory of a CAFTA-DR country as the 
                good described in clause (i) for which regional value-
                content is being calculated.

            (D) Other automotive goods.--For purposes of determining 
        the regional value-content under subparagraph (A) for 
        automotive goods provided for in any of subheadings 8407.31 
        through 8407.34, in subheading 8408.20, or in heading 8409, 
        8706, 8707, or 8708, that are produced in the same plant, an 
        importer, exporter, or producer may--
                (i) average the amounts calculated under the formula 
            contained in subparagraph (A) over--

                    (I) the fiscal year of the motor vehicle producer 
                to whom the automotive goods are sold,
                    (II) any quarter or month, or
                    (III) its own fiscal year,

            if the goods were produced during the fiscal year, quarter, 
            or month that is the basis for the calculation;
                (ii) determine the average referred to in clause (i) 
            separately for such goods sold to 1 or more motor vehicle 
            producers; or
                (iii) make a separate determination under clause (i) or 
            (ii) for automotive goods that are exported to the 
            territory of one or more of the CAFTA-DR countries.
            (E) Calculating net cost.--The importer, exporter, or 
        producer shall, consistent with the provisions regarding 
        allocation of costs set out in generally accepted accounting 
        principles, determine the net cost of an automotive good under 
        subparagraph (B) by--
                (i) calculating the total cost incurred with respect to 
            all goods produced by the producer of the automotive good, 
            subtracting any sales promotion, marketing and after-sales 
            service costs, royalties, shipping and packing costs, and 
            nonallowable interest costs that are included in the total 
            cost of all such goods, and then reasonably allocating the 
            resulting net cost of those goods to the automotive good;
                (ii) calculating the total cost incurred with respect 
            to all goods produced by that producer, reasonably 
            allocating the total cost to the automotive good, and then 
            subtracting any sales promotion, marketing and after-sales 
            service costs, royalties, shipping and packing costs, and 
            nonallowable interest costs that are included in the 
            portion of the total cost allocated to the automotive good; 
            or
                (iii) reasonably allocating each cost that forms part 
            of the total cost incurred with respect to the automotive 
            good so that the aggregate of all such costs does not 
            include any sales promotion, marketing and after-sales 
            service costs, royalties, shipping and packing costs, or 
            nonallowable interest costs.
    (d) Value of Materials.--
        (1) In general.--For the purpose of calculating the regional 
    value-content of a good under subsection (c), and for purposes of 
    applying the de minimis rules under subsection (f), the value of a 
    material is--
            (A) in the case of a material that is imported by the 
        producer of the good, the adjusted value of the material;
            (B) in the case of a material acquired in the territory in 
        which the good is produced, the value, determined in accordance 
        with Articles 1 through 8, Article 15, and the corresponding 
        interpretive notes of the Agreement on Implementation of 
        Article VII of the General Agreement on Tariffs and Trade 1994 
        referred to in section 101(d)(8) of the Uruguay Round 
        Agreements Act, as set forth in regulations promulgated by the 
        Secretary of the Treasury providing for the application of such 
        Articles in the absence of an importation; or
            (C) in the case of a material that is self-produced, the 
        sum of--
                (i) all expenses incurred in the production of the 
            material, including general expenses; and
                (ii) an amount for profit equivalent to the profit 
            added in the normal course of trade.
        (2) Further adjustments to the value of materials.--
            (A) Originating material.--The following expenses, if not 
        included in the value of an originating material calculated 
        under paragraph (1), may be added to the value of the 
        originating material:
                (i) The costs of freight, insurance, packing, and all 
            other costs incurred in transporting the material within or 
            between the territory of one or more of the CAFTA-DR 
            countries to the location of the producer.
                (ii) Duties, taxes, and customs brokerage fees on the 
            material paid in the territory of one or more of the CAFTA-
            DR countries, other than duties or taxes that are waived, 
            refunded, refundable, or otherwise recoverable, including 
            credit against duty or tax paid or payable.
                (iii) The cost of waste and spoilage resulting from the 
            use of the material in the production of the good, less the 
            value of renewable scrap or byproducts.
            (B) Nonoriginating material.--The following expenses, if 
        included in the value of a nonoriginating material calculated 
        under paragraph (1), may be deducted from the value of the 
        nonoriginating material:
                (i) The costs of freight, insurance, packing, and all 
            other costs incurred in transporting the material within or 
            between the territory of one or more of the CAFTA-DR 
            countries to the location of the producer.
                (ii) Duties, taxes, and customs brokerage fees on the 
            material paid in the territory of one or more of the CAFTA-
            DR countries, other than duties or taxes that are waived, 
            refunded, refundable, or otherwise recoverable, including 
            credit against duty or tax paid or payable.
                (iii) The cost of waste and spoilage resulting from the 
            use of the material in the production of the good, less the 
            value of renewable scrap or byproducts.
                (iv) The cost of originating materials used in the 
            production of the nonoriginating material in the territory 
            of one or more of the CAFTA-DR countries.
    (e) Accumulation.--
        (1) Originating materials used in production of goods of 
    another country.--Originating materials from the territory of one 
    or more of the CAFTA-DR countries that are used in the production 
    of a good in the territory of another CAFTA-DR country shall be 
    considered to originate in the territory of that other country.
        (2) Multiple procedures.--A good that is produced in the 
    territory of one or more of the CAFTA-DR countries by 1 or more 
    producers is an originating good if the good satisfies the 
    requirements of subsection (b) and all other applicable 
    requirements of this section.
    (f) De Minimis Amounts of Nonoriginating Materials.--
        (1) In general.--Except as provided in paragraphs (2) and (3), 
    a good that does not undergo a change in tariff classification 
    pursuant to Annex 4.1 of the Agreement is an originating good if--
            (A) the value of all nonoriginating materials that--
                (i) are used in the production of the good, and
                (ii) do not undergo the applicable change in tariff 
            classification (set out in Annex 4.1 of the Agreement),
        does not exceed 10 percent of the adjusted value of the good;
            (B) the good meets all other applicable requirements of 
        this section; and
            (C) the value of such nonoriginating materials is included 
        in the value of nonoriginating materials for any applicable 
        regional value-content requirement for the good.
        (2) Exceptions.--Paragraph (1) does not apply to the following:
            (A) A nonoriginating material provided for in chapter 4, or 
        a nonoriginating dairy preparation containing over 10 percent 
        by weight of milk solids provided for in subheading 1901.90 or 
        2106.90, that is used in the production of a good provided for 
        in chapter 4.
            (B) A nonoriginating material provided for in chapter 4, or 
        a nonoriginating dairy preparation containing over 10 percent 
        by weight of milk solids provided for in subheading 1901.90, 
        that is used in the production of the following goods:
                (i) Infant preparations containing over 10 percent by 
            weight of milk solids provided for in subheading 1901.10.
                (ii) Mixes and doughs, containing over 25 percent by 
            weight of butterfat, not put up for retail sale, provided 
            for in subheading 1901.20.
                (iii) Dairy preparations containing over 10 percent by 
            weight of milk solids provided for in subheading 1901.90 or 
            2106.90.
                (iv) Goods provided for in heading 2105.
                (v) Beverages containing milk provided for in 
            subheading 2202.90.
                (vi) Animal feeds containing over 10 percent by weight 
            of milk solids provided for in subheading 2309.90.
            (C) A nonoriginating material provided for in heading 0805, 
        or any of subheadings 2009.11 through 2009.39, that is used in 
        the production of a good provided for in any of subheadings 
        2009.11 through 2009.39, or in fruit or vegetable juice of any 
        single fruit or vegetable, fortified with minerals or vitamins, 
        concentrated or unconcentrated, provided for in subheading 
        2106.90 or 2202.90.
            (D) A nonoriginating material provided for in heading 0901 
        or 2101 that is used in the production of a good provided for 
        in heading 0901 or 2101.
            (E) A nonoriginating material provided for in heading 1006 
        that is used in the production of a good provided for in 
        heading 1102 or 1103 or subheading 1904.90.
            (F) A nonoriginating material provided for in chapter 15 
        that is used in the production of a good provided for in 
        chapter 15.
            (G) A nonoriginating material provided for in heading 1701 
        that is used in the production of a good provided for in any of 
        headings 1701 through 1703.
            (H) A nonoriginating material provided for in chapter 17 
        that is used in the production of a good provided for in 
        subheading 1806.10.
            (I) Except as provided in subparagraphs (A) through (H) and 
        Annex 4.1 of the Agreement, a nonoriginating material used in 
        the production of a good provided for in any of chapters 1 
        through 24, unless the nonoriginating material is provided for 
        in a different subheading than the good for which origin is 
        being determined under this section.
        (3) Textile or apparel goods.--
            (A) In general.--Except as provided in subparagraph (B), a 
        textile or apparel good that is not an originating good because 
        certain fibers or yarns used in the production of the component 
        of the good that determines the tariff classification of the 
        good do not undergo an applicable change in tariff 
        classification, set out in Annex 4.1 of the Agreement, shall be 
        considered to be an originating good if--
                (i) the total weight of all such fibers or yarns in 
            that component is not more than 10 percent of the total 
            weight of that component; or
                (ii) the yarns are those described in section 
            204(b)(3)(B)(vi)(IV) of the Andean Trade Preference Act (19 
            U.S.C. 3203(b)(3)(B)(vi)(IV))(as in effect on the date of 
            the enactment of this Act).
            (B) Certain textile or apparel goods.--A textile or apparel 
        good containing elastomeric yarns in the component of the good 
        that determines the tariff classification of the good shall be 
        considered to be an originating good only if such yarns are 
        wholly formed in the territory of a CAFTA-DR country.
            (C) Yarn, fabric, or fiber.--For purposes of this 
        paragraph, in the case of a good that is a yarn, fabric, or 
        fiber, the term ``component of the good that determines the 
        tariff classification of the good'' means all of the fibers in 
        the good.
    (g) Fungible Goods and Materials.--
        (1) In general.--
            (A) Claim for preferential tariff treatment.--A person 
        claiming that a fungible good or fungible material is an 
        originating good may base the claim either on the physical 
        segregation of the fungible good or fungible material or by 
        using an inventory management method with respect to the 
        fungible good or fungible material.
            (B) Inventory management method.--In this subsection, the 
        term ``inventory management method'' means--
                (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 CAFTA-DR country in which the 
                production is performed; or
                    (II) otherwise accepted by that country.

        (2) Election of inventory method.--A person selecting an 
    inventory management method under paragraph (1) for a particular 
    fungible good or fungible material shall continue to use that 
    method for that fungible good or fungible material throughout the 
    fiscal year of that person.
    (h) Accessories, Spare Parts, or Tools.--
        (1) In general.--Subject to paragraphs (2) and (3), 
    accessories, spare parts, or tools delivered with a good that form 
    part of the good's standard accessories, spare parts, or tools 
    shall--
            (A) be treated as originating goods if the good is an 
        originating good; and
            (B) be disregarded in determining whether all the 
        nonoriginating materials used in the production of the good 
        undergo the applicable change in tariff classification set out 
        in Annex 4.1 of the Agreement.
        (2) Conditions.--Paragraph (1) shall apply only if--
            (A) the accessories, spare parts, or tools are classified 
        with and not invoiced separately from the good, regardless of 
        whether they appear specified or separately identified in the 
        invoice for the good; and
            (B) the quantities and value of the accessories, spare 
        parts, or tools are customary for the good.
        (3) Regional value-content.--If the good is subject to a 
    regional value-content requirement, the value of the accessories, 
    spare parts, or tools shall be taken into account as originating or 
    nonoriginating materials, as the case may be, in calculating the 
    regional value-content of the good.
    (i) Packaging Materials and Containers for Retail Sale.--Packaging 
materials and containers in which a good is packaged for retail sale, 
if classified with the good, shall be disregarded in determining 
whether all the nonoriginating materials used in the production of the 
good undergo the applicable change in tariff classification set out in 
Annex 4.1 of the Agreement, and, if the good is subject to a regional 
value-content requirement, the value of such packaging materials and 
containers shall be taken into account as originating or nonoriginating 
materials, as the case may be, in calculating the regional value-
content of the good.
    (j) Packing Materials and Containers for Shipment.--Packing 
materials and containers for shipment shall be disregarded in 
determining whether a good is an originating good.
    (k) Indirect Materials.--An indirect material shall be treated as 
an originating material without regard to where it is produced.
    (l) Transit and Transhipment.--A good that has undergone production 
necessary to qualify as an originating good under subsection (b) shall 
not be considered to be an originating good if, subsequent to that 
production, the good--
        (1) undergoes further production or any other operation outside 
    the territories of the CAFTA-DR countries, other than unloading, 
    reloading, or any other operation necessary to preserve the good in 
    good condition or to transport the good to the territory of a 
    CAFTA-DR country; or
        (2) does not remain under the control of customs authorities in 
    the territory of a country other than a CAFTA-DR country.
    (m) Goods Classifiable as Goods Put Up in Sets.--Notwithstanding 
the rules set forth in Annex 4.1 of the Agreement, goods classifiable 
as goods put up in sets for retail sale as provided for in General Rule 
of Interpretation 3 of the HTS shall not be considered to be 
originating goods unless--
        (1) each of the goods in the set is an originating good; or
        (2) the total value of the nonoriginating goods in the set does 
    not exceed--
            (A) in the case of textile or apparel goods, 10 percent of 
        the adjusted value of the set; or
            (B) in the case of a good, other than a textile or apparel 
        good, 15 percent of the adjusted value of the set.
    (n) Definitions.--In this section:
        (1) Adjusted value.--The term ``adjusted value'' means the 
    value determined in accordance with Articles 1 through 8, Article 
    15, and the corresponding interpretive notes of the Agreement on 
    Implementation of Article VII of the General Agreement on Tariffs 
    and Trade 1994 referred to in section 101(d)(8) of the Uruguay 
    Round Agreements Act, adjusted, if necessary, to exclude any costs, 
    charges, or expenses incurred for transportation, insurance, and 
    related services incident to the international shipment of the 
    merchandise from the country of exportation to the place of 
    importation.
        (2) CAFTA-DR country.--The term ``CAFTA-DR country'' means--
            (A) the United States; and
            (B) Costa Rica, the Dominican Republic, El Salvador, 
        Guatemala, Honduras, or Nicaragua, for such time as the 
        Agreement is in force between the United States and that 
        country.
        (3) Class of motor vehicles.--The term ``class of motor 
    vehicles'' means any one of the following categories of motor 
    vehicles:
            (A) Motor vehicles provided for in subheading 8701.20, 
        8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 
        or 8706, or motor vehicles for the transport of 16 or more 
        persons provided for in subheading 8702.10 or 8702.90.
            (B) Motor vehicles provided for in subheading 8701.10 or 
        any of subheadings 8701.30 through 8701.90.
            (C) Motor vehicles for the transport of 15 or fewer persons 
        provided for in subheading 8702.10 or 8702.90, or motor 
        vehicles provided for in subheading 8704.21 or 8704.31.
            (D) Motor vehicles provided for in any of subheadings 
        8703.21 through 8703.90.
        (4) Fungible good or fungible material.--The term ``fungible 
    good'' or ``fungible material'' means a good or material, as the 
    case may be, that is interchangeable with another good or material 
    for commercial purposes and the properties of which are essentially 
    identical to such other good or material.
        (5) Generally accepted accounting principles.--The term 
    ``generally accepted accounting principles'' means the recognized 
    consensus or substantial authoritative support in the territory of 
    a CAFTA-DR country with respect to the recording of revenues, 
    expenses, costs, assets, and liabilities, the disclosure of 
    information, and the preparation of financial statements. The 
    principles may encompass broad guidelines of general application as 
    well as detailed standards, practices, and procedures.
        (6) Goods wholly obtained or produced entirely in the territory 
    of one or more of the cafta-dr countries.--The term ``goods wholly 
    obtained or produced entirely in the territory of one or more of 
    the CAFTA-DR countries'' means--
            (A) plants and plant products harvested or gathered in the 
        territory of one or more of the CAFTA-DR countries;
            (B) live animals born and raised in the territory of one or 
        more of the CAFTA-DR countries;
            (C) goods obtained in the territory of one or more of the 
        CAFTA-DR countries from live animals;
            (D) goods obtained from hunting, trapping, fishing or 
        aquaculture conducted in the territory of one or more of the 
        CAFTA-DR countries;
            (E) minerals and other natural resources not included in 
        subparagraphs (A) through (D) that are extracted or taken in 
        the territory of one or more of the CAFTA-DR countries;
            (F) fish, shellfish, and other marine life taken from the 
        sea, seabed, or subsoil outside the territory of one or more of 
        the CAFTA-DR countries by vessels registered or recorded with a 
        CAFTA-DR country and flying the flag of that country;
            (G) goods produced on board factory ships from the goods 
        referred to in subparagraph (F), if such factory ships are 
        registered or recorded with that CAFTA-DR country and fly the 
        flag of that country;
            (H) goods taken by a CAFTA-DR country or a person of a 
        CAFTA-DR country from the seabed or subsoil outside territorial 
        waters, if a CAFTA-DR country has rights to exploit such seabed 
        or subsoil;
            (I) goods taken from outer space, if the goods are obtained 
        by a CAFTA-DR country or a person of a CAFTA-DR country and not 
        processed in the territory of a country other than a CAFTA-DR 
        country;
            (J) waste and scrap derived from--
                (i) manufacturing or processing operations in the 
            territory of one or more of the CAFTA-DR countries; or
                (ii) used goods collected in the territory of one or 
            more of the CAFTA-DR countries, if such goods are fit only 
            for the recovery of raw materials;
            (K) recovered goods derived in the territory of one or more 
        of the CAFTA-DR countries from used goods, and used in the 
        territory of a CAFTA-DR country in the production of 
        remanufactured goods; and
            (L) goods produced in the territory of one or more of the 
        CAFTA-DR countries exclusively from--
                (i) goods referred to in any of subparagraphs (A) 
            through (J), or
                (ii) the derivatives of goods referred to in clause 
            (i),
        at any stage of production.
        (7) Identical goods.--The term ``identical goods'' means 
    identical goods as defined in the Agreement on Implementation of 
    Article VII of the General Agreement on Tariffs and Trade 1994 
    referred to in section 101(d)(8) of the Uruguay Round Agreements 
    Act;
        (8) Indirect material.--The term ``indirect material'' means a 
    good used in the production, testing, or inspection of a good but 
    not physically incorporated into the good, or a good used in the 
    maintenance of buildings or the operation of equipment associated 
    with the production of a good, including--
            (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.
        (9) Material.--The term ``material'' means a good that is used 
    in the production of another good, including a part or an 
    ingredient.
        (10) Material that is self-produced.--The term ``material that 
    is self-produced'' means an originating material that is produced 
    by a producer of a good and used in the production of that good.
        (11) Model line.--The term ``model line'' means a group of 
    motor vehicles having the same platform or model name.
        (12) Net cost.--The term ``net cost'' means total cost minus 
    sales promotion, marketing, and after-sales service costs, 
    royalties, shipping and packing costs, and non-allowable interest 
    costs that are included in the total cost.
        (13) Nonallowable interest costs.--The term ``nonallowable 
    interest costs'' means interest costs incurred by a producer that 
    exceed 700 basis points above the applicable official interest rate 
    for comparable maturities of the CAFTA-DR country in which the 
    producer is located.
        (14) Nonoriginating good or nonoriginating material.--The terms 
    ``nonoriginating good'' and ``nonoriginating material'' mean a good 
    or material, as the case may be, that does not qualify as 
    originating under this section.
        (15) Packing materials and containers for shipment.--The term 
    ``packing materials and containers for shipment'' means the goods 
    used to protect a good during its transportation and does not 
    include the packaging materials and containers in which a good is 
    packaged for retail sale.
        (16) Preferential tariff treatment.--The term ``preferential 
    tariff treatment'' means the customs duty rate, and the treatment 
    under article 3.10.4 of the Agreement, that are applicable to an 
    originating good pursuant to the Agreement.
        (17) Producer.--The term ``producer'' means a person who 
    engages in the production of a good in the territory of a CAFTA-DR 
    country.
        (18) Production.--The term ``production'' means growing, 
    mining, harvesting, fishing, raising, trapping, hunting, 
    manufacturing, processing, assembling, or disassembling a good.
        (19) Reasonably allocate.--The term ``reasonably allocate'' 
    means to apportion in a manner that would be appropriate under 
    generally accepted accounting principles.
        (20) Recovered goods.--The term ``recovered goods'' means 
    materials in the form of individual parts that are the result of--
            (A) the disassembly of used goods into individual parts; 
        and
            (B) the cleaning, inspecting, testing, or other processing 
        that is necessary for improvement to sound working condition of 
        such individual parts.
        (21) Remanufactured good.--The term ``remanufactured good'' 
    means a good that is classified under chapter 84, 85, or 87, or 
    heading 9026, 9031, or 9032, other than a good classified under 
    heading 8418 or 8516, and that--
            (A) is entirely or partially comprised of recovered goods; 
        and
            (B) has a similar life expectancy and enjoys a factory 
        warranty similar to such a new good.
        (22) Total cost.--The term ``total cost'' means all product 
    costs, period costs, and other costs for a good incurred in the 
    territory of one or more of the CAFTA-DR countries.
        (23) Used.--The term ``used'' means used or consumed in the 
    production of goods.
    (o) Presidential Proclamation Authority.--
        (1) In general.--The President is authorized to proclaim, as 
    part of the HTS--
            (A) the provisions set out in Annex 4.1 of the Agreement; 
        and
            (B) any additional subordinate category necessary to carry 
        out this title consistent with the Agreement.
        (2) Fabrics and yarns not available in commercial quantities in 
    the united states.--The President is authorized to proclaim that a 
    fabric or yarn is added to the list in Annex 3.25 of the Agreement 
    in an unrestricted quantity, as provided in article 3.25.4(e) of 
    the Agreement.
        (3) Modifications.--
            (A) In general.--Subject to the consultation and layover 
        provisions of section 104, the President may proclaim 
        modifications to the provisions proclaimed under the authority 
        of paragraph (1)(A), other than provisions of chapters 50 
        through 63, as included in Annex 4.1 of the Agreement.
            (B) Additional proclamations.--Notwithstanding subparagraph 
        (A), and subject to the consultation and layover provisions of 
        section 104, the President may proclaim before the end of the 
        1-year period beginning on the date of the enactment of this 
        Act, modifications to correct any typographical, clerical, or 
        other nonsubstantive technical error regarding the provisions 
        of chapters 50 through 63, as included in Annex 4.1 of the 
        Agreement.
        (4) Fabrics, yarns, or fibers not available in commercial 
    quantities in the cafta-dr countries.--
            (A) In general.--Notwithstanding paragraph 3(A), the list 
        of fabrics, yarns, and fibers set out in Annex 3.25 of the 
        Agreement may be modified as provided for in this paragraph.
            (B) Definitions.--In this paragraph:
                (i) The term ``interested entity'' means the government 
            of a CAFTA-DR country other than the United States, a 
            potential or actual purchaser of a textile or apparel good, 
            or a potential or actual supplier of a textile or apparel 
            good.
                (ii) All references to ``day'' and ``days'' exclude 
            Saturdays, Sundays, and legal holidays.
            (C) Requests to add fabrics, yarns, or fibers.--(i) An 
        interested entity may request the President to determine that a 
        fabric, yarn, or fiber is not available in commercial 
        quantities in a timely manner in the CAFTA-DR countries and to 
        add that fabric, yarn, or fiber to the list in Annex 3.25 of 
        the Agreement in a restricted or unrestricted quantity.
            (ii) After receiving a request under clause (i), the 
        President may determine whether--
                (I) the fabric, yarn, or fiber is available in 
            commercial quantities in a timely manner in the CAFTA-DR 
            countries; or
                (II) any interested entity objects to the request.
            (iii) The President may, within the time periods specified 
        in clause (iv), proclaim that a fabric, yarn, or fiber that is 
        the subject of a request submitted under clause (i) is added to 
        the list in Annex 3.25 of the Agreement in an unrestricted 
        quantity, or in any restricted quantity that the President may 
        establish, if the President determines under clause (ii) that--
                (I) the fabric, yarn, or fiber is not available in 
            commercial quantities in a timely manner in the CAFTA-DR 
            countries; or
                (II) no interested entity has objected to the request.
            (iv) The time periods within which the President may issue 
        a proclamation under clause (iii) are--
                (I) not later than 30 days after the date on which the 
            request is submitted under clause (i); or
                (II) not later than 44 days after the request is 
            submitted, if the President determines, within 30 days 
            after the date on which the request is submitted, that the 
            President does not have sufficient information to make a 
            determination under clause (ii).
            (v) Notwithstanding section 103(a)(2), a proclamation made 
        under clause (iii) shall take effect on the date on which the 
        text of the proclamation is published in the Federal Register.
            (vi) Not later than 6 months after proclaiming under clause 
        (iii) that a fabric, yarn, or fiber is added to the list in 
        Annex 3.25 of the Agreement in a restricted quantity, the 
        President may eliminate the restriction if the President 
        determines that the fabric, yarn, or fiber is not available in 
        commercial quantities in a timely manner in the CAFTA-DR 
        countries.
            (D) Deemed approval of request.--If, after an interested 
        entity submits a request under subparagraph (C)(i), the 
        President does not, within the applicable time period specified 
        in subparagraph (C)(iv), make a determination under 
        subparagraph (C)(ii) regarding the request, the fabric, yarn, 
        or fiber that is the subject of the request shall be considered 
        to be added, in an unrestricted quantity, to the list in Annex 
        3.25 of the Agreement beginning--
                (i) 45 days after the date on which the request was 
            submitted; or
                (ii) 60 days after the date on which the request was 
            submitted, if the President made a determination under 
            subparagraph (C)(iv)(II).
            (E) Requests to restrict or remove fabrics, yarns, or 
        fibers.--(i) Subject to clause (ii), an interested entity may 
        request the President to restrict the quantity of, or remove 
        from the list in Annex 3.25 of the Agreement, any fabric, yarn, 
        or fiber--
                (I) that has been added to that list in an unrestricted 
            quantity pursuant to paragraph (2) or subparagraph (C)(iii) 
            or (D); or
                (II) with respect to which the President has eliminated 
            a restriction under subparagraph (C)(vi).
            (ii) An interested entity may submit a request under clause 
        (i) at any time beginning 6 months after the date of the action 
        described in subclause (I) or (II) of that clause.
            (iii) Not later than 30 days after the date on which a 
        request under clause (i) is submitted, the President may 
        proclaim an action provided for under clause (i) if the 
        President determines that the fabric, yarn, or fiber that is 
        the subject of the request is available in commercial 
        quantities in a timely manner in the CAFTA-DR countries.
            (iv) A proclamation declared under clause (iii) shall take 
        effect no earlier than the date that is 6 months after the date 
        on which the text of the proclamation is published in the 
        Federal Register.
            (F) Procedures.--The President shall establish procedures--
                (i) governing the submission of a request under 
            subparagraphs (C) and (E); and
                (ii) providing an opportunity for interested entities 
            to submit comments and supporting evidence before the 
            President makes a determination under subparagraph (C) (ii) 
            or (vi) or (E)(iii).

SEC. 204. CUSTOMS USER FEES.

    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph 
(14), the following:
        ``(15) No fee may be charged under subsection (a) (9) or (10) 
    with respect to goods that qualify as originating goods under 
    section 203 of the Dominican Republic-Central America-United States 
    Free Trade Agreement Implementation Act. Any service for which an 
    exemption from such fee is provided by reason of this paragraph may 
    not be funded with money contained in the Customs User Fee 
    Account.''.

SEC. 205. RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND 
              RELIQUIDATIONS OF TEXTILE OR APPAREL GOODS.

    (a) In General.--Notwithstanding section 514 of the Tariff Act of 
1930 (19 U.S.C. 1514) or any other provision of law, and subject to 
subsection (c), an entry--
        (1) of a textile or apparel good--
            (A) of a CAFTA-DR country that the United States Trade 
        Representative has designated as an eligible country under 
        subsection (b), and
            (B) that would have qualified as an originating good under 
        section 203 if the good had been entered after the date of 
        entry into force of the Agreement for that country,
        (2) that was made on or after January 1, 2004, and before the 
    date of the entry into force of the Agreement with respect to that 
    country, and
        (3) for which customs duties in excess of the applicable rate 
    of duty for that good set out in the Schedule of the United States 
    to Annex 3.3 of the Agreement were paid,
shall be liquidated or reliquidated at the applicable rate of duty for 
that good set out in the Schedule of the United States to Annex 3.3 of 
the Agreement, and the Secretary of the Treasury shall refund any 
excess customs duties paid with respect to such entry.
    (b) Eligible Country.--The United States Trade Representative shall 
determine, in accordance with article 3.20 of the Agreement, which 
CAFTA-DR countries are eligible countries for purposes of this section, 
and shall publish a list of all such countries in the Federal Register.
    (c) Requests.--Liquidation or reliquidation may be made under 
subsection (a) with respect to an entry of a textile or apparel good 
only if a request therefor is filed with the Bureau of Customs and 
Border Protection, within such period as the Bureau of Customs and 
Border Protection shall establish by regulation in consultation with 
the Secretary of the Treasury, that contains sufficient information to 
enable the Bureau of Customs and Border Protection--
        (1)(A) to locate the entry; or
        (B) to reconstruct the entry if it cannot be located; and
        (2) to determine that the good satisfies the conditions set out 
    in subsection (a).
    (d) Definition.--As used in this section, the term ``entry'' 
includes a withdrawal from warehouse for consumption.

SEC. 206. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF 
              ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.

    (a) Disclosure of Incorrect Information.--Section 592 of the Tariff 
Act of 1930 (19 U.S.C. 1592) is amended--
        (1) in subsection (c)--
            (A) by redesignating paragraph (9) as paragraph (10); and
            (B) by inserting after paragraph (8) the following new 
        paragraph:
        ``(9) Prior disclosure regarding claims under the dominican 
    republic-central america-united states free trade agreement.--An 
    importer shall not be subject to penalties under subsection (a) for 
    making an incorrect claim that a good qualifies as an originating 
    good under section 203 of the Dominican Republic-Central America-
    United States Free Trade Agreement Implementation Act if the 
    importer, in accordance with regulations issued by the Secretary of 
    the Treasury, promptly and voluntarily makes a corrected 
    declaration and pays any duties owing.''; and
        (2) by adding at the end the following new subsection:
    ``(h) False Certifications of Origin Under the Dominican Republic-
Central America-United States Free Trade Agreement.--
        ``(1) In general.--Subject to paragraph (2), it is unlawful for 
    any person to certify falsely, by fraud, gross negligence, or 
    negligence, in a CAFTA-DR certification of origin (as defined in 
    section 508(g)(1)(B) of this Act) that a good exported from the 
    United States qualifies as an originating good under the rules of 
    origin set out in section 203 of the Dominican Republic-Central 
    America-United States Free Trade Agreement Implementation Act. The 
    procedures and penalties of this section that apply to a violation 
    of subsection (a) also apply to a violation of this subsection.
        ``(2) Prompt and voluntary disclosure of incorrect 
    information.--No penalty shall be imposed under this subsection if, 
    promptly after an exporter or producer that issued a CAFTA-DR 
    certification of origin has reason to believe that such 
    certification contains or is based on incorrect information, the 
    exporter or producer voluntarily provides written notice of such 
    incorrect information to every person to whom the certification was 
    issued.
        ``(3) Exception.--A person may not be considered to have 
    violated paragraph (1) if--
            ``(A) the information was correct at the time it was 
        provided in a CAFTA-DR certification of origin but was later 
        rendered incorrect due to a change in circumstances; and
            ``(B) the person promptly and voluntarily provides written 
        notice of the change in circumstances to all persons to whom 
        the person provided the certification.''.
    (b) Denial of Preferential Tariff Treatment.--Section 514 of the 
Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding at the end the 
following new subsection:
    ``(h) Denial of Preferential Tariff Treatment Under the Dominican 
Republic-Central America-United States Free Trade Agreement.--If the 
Bureau of Customs and Border Protection or the Bureau of Immigration 
and Customs Enforcement finds indications of a pattern of conduct by an 
importer, exporter, or producer of false or unsupported representations 
that goods qualify under the rules of origin set out in section 203 of 
the Dominican Republic-Central America-United States Free Trade 
Agreement Implementation Act, the Bureau of Customs and Border 
Protection, in accordance with regulations issued by the Secretary of 
the Treasury, may suspend preferential tariff treatment under the 
Dominican Republic-Central America-United States Free Trade Agreement 
to entries of identical goods covered by subsequent representations by 
that importer, exporter, or producer until the Bureau of Customs and 
Border Protection determines that representations of that person are in 
conformity with such section 203.''.

SEC. 207. RELIQUIDATION OF ENTRIES.

    Subsection (d) of section 520 of the Tariff Act of 1930 (19 U.S.C. 
1520(d)) is amended--
        (1) in the matter preceding paragraph (1), by striking ``or 
    section 202 of the United States-Chile Free Trade Agreement 
    Implementation Act'' and inserting ``, section 202 of the United 
    States-Chile Free Trade Agreement Implementation Act, or section 
    203 of the Dominican Republic-Central America-United States Free 
    Trade Agreement Implementation Act''; and
        (2) in paragraph (2), by inserting ``or certifications'' after 
    ``other certificates''.

SEC. 208. RECORDKEEPING REQUIREMENTS.

    Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
        (1) by redesignating subsection (g) as subsection (h);
        (2) by inserting after subsection (f) the following new 
    subsection:
    ``(g) Certifications of Origin for Goods Exported Under the 
Dominican Republic-Central America-United States Free Trade 
Agreement.--
        ``(1) Definitions.--In this subsection:
            ``(A) Records and supporting documents.--The term `records 
        and supporting documents' means, with respect to an exported 
        good under paragraph (2), records and documents related to the 
        origin of the good, including--
                ``(i) the purchase, cost, and value of, and payment 
            for, the good;
                ``(ii) the purchase, cost, and value of, and payment 
            for, all materials, including indirect materials, used in 
            the production of the good; and
                ``(iii) the production of the good in the form in which 
            it was exported.
            ``(B) CAFTA-DR certification of origin.--The term `CAFTA-DR 
        certification of origin' means the certification established 
        under article 4.16 of the Dominican Republic-Central America-
        United States Free Trade Agreement that a good qualifies as an 
        originating good under such Agreement.
        ``(2) Exports to cafta-dr countries.--Any person who completes 
    and issues a CAFTA-DR certification of origin for a good exported 
    from the United States shall make, keep, and, pursuant to rules and 
    regulations promulgated by the Secretary of the Treasury, render 
    for examination and inspection all records and supporting documents 
    related to the origin of the good (including the certification or 
    copies thereof).
        ``(3) Retention period.--Records and supporting documents shall 
    be kept by the person who issued a CAFTA-DR certification of origin 
    for at least 5 years after the date on which the certification was 
    issued.''; and
        (3) in subsection (h), as so redesignated--
            (A) by inserting ``or (g)'' after ``(f)''; and
            (B) by striking ``that subsection'' and inserting ``either 
        such subsection''.

SEC. 209. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL GOODS.

    (a) Action During Verification.--
        (1) In general.--If the Secretary of the Treasury requests the 
    government of a CAFTA-DR country to conduct a verification pursuant 
    to article 3.24 of the Agreement for purposes of making a 
    determination under paragraph (2), the President may direct the 
    Secretary to take appropriate action described in subsection (b) 
    while the verification is being conducted.
        (2) Determination.--A determination under this paragraph is a 
    determination--
            (A) that an exporter or producer in that country is 
        complying with applicable customs laws, regulations, and 
        procedures regarding trade in textile or apparel goods, or
            (B) that a claim that a textile or apparel good exported or 
        produced by such exporter or producer--
                (i) qualifies as an originating good under section 203 
            of this Act, or
                (ii) is a good of a CAFTA-DR country,
        is accurate.
    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
        (1) suspension of preferential tariff treatment under the 
    Agreement with respect to--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification under subsection 
        (a)(1) regarding compliance described in subsection (a)(2)(A), 
        if the Secretary determines there is insufficient information 
        to support any claim for preferential tariff treatment that has 
        been made with respect to any such good; or
            (B) the textile or apparel good for which a claim of 
        preferential tariff treatment has been made that is the subject 
        of a verification under subsection (a)(1) regarding a claim 
        described in subsection (a)(2)(B), if the Secretary determines 
        there is insufficient information to support that claim;
        (2) denial of preferential tariff treatment under the Agreement 
    with respect to--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification under subsection 
        (a)(1) regarding compliance described in subsection (a)(2)(A), 
        if the Secretary determines that the person has provided 
        incorrect information to support any claim for preferential 
        tariff treatment that has been made with respect to any such 
        good; or
            (B) the textile or apparel good for which a claim of 
        preferential tariff treatment has been made that is the subject 
        of a verification under subsection (a)(1) regarding a claim 
        described in subsection (a)(2)(B), if the Secretary determines 
        that a person has provided incorrect information to support 
        that claim;
        (3) detention of any textile or apparel good exported or 
    produced by the person that is the subject of a verification under 
    subsection (a)(1) regarding compliance described in subsection 
    (a)(2)(A) or a claim described in subsection (a)(2)(B), if the 
    Secretary determines there is insufficient information to determine 
    the country of origin of any such good; and
        (4) denial of entry into the United States of any textile or 
    apparel good exported or produced by the person that is the subject 
    of a verification under subsection (a)(1) regarding compliance 
    described in subsection (a)(2)(A) or a claim described in 
    subsection (a)(2)(B), if the Secretary determines that the person 
    has provided incorrect information as to the country of origin of 
    any such good.
    (c) Action on Completion of a Verification.--On completion of a 
verification under subsection (a), the President may direct the 
Secretary to take appropriate action described in subsection (d) until 
such time as the Secretary receives information sufficient to make the 
determination under subsection (a)(2) or until such earlier date as the 
President may direct.
    (d) Appropriate Action Described.--Appropriate action under 
subsection (c) includes--
        (1) denial of preferential tariff treatment under the Agreement 
    with respect to--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification under subsection 
        (a)(1) regarding compliance described in subsection (a)(2)(A), 
        if the Secretary determines there is insufficient information 
        to support, or that the person has provided incorrect 
        information to support, any claim for preferential tariff 
        treatment that has been made with respect to any such good; or
            (B) the textile or apparel good for which a claim of 
        preferential tariff treatment has been made that is the subject 
        of a verification under subsection (a)(1) regarding a claim 
        described in subsection (a)(2)(B), if the Secretary determines 
        there is insufficient information to support, or that a person 
        has provided incorrect information to support, that claim; and
        (2) denial of entry into the United States of any textile or 
    apparel good exported or produced by the person that is the subject 
    of a verification under subsection (a)(1) regarding compliance 
    described in subsection (a)(2)(A) or a claim described in 
    subsection (a)(2)(B), if the Secretary determines there is 
    insufficient information to determine, or that the person has 
    provided incorrect information as to, the country of origin of any 
    such good.
    (e) Publication of Name of Person.--The Secretary may publish the 
name of any person that the Secretary has determined--
        (1) is engaged in intentional circumvention of applicable laws, 
    regulations, or procedures affecting trade in textile or apparel 
    goods; or
        (2) has failed to demonstrate that it produces, or is capable 
    of producing, textile or apparel goods.

SEC. 210. REGULATIONS.

    The Secretary of the Treasury shall prescribe such regulations as 
may be necessary to carry out--
        (1) subsections (a) through (n) of section 203;
        (2) the amendment made by section 204; and
        (3) any proclamation issued under section 203(o).

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

    In this title:
        (1) CAFTA-DR article.--The term ``CAFTA-DR article'' means an 
    article that qualifies as an originating good under section 203(b).
        (2) CAFTA-DR textile or apparel article.--The term ``CAFTA-DR 
    textile or apparel article'' means a textile or apparel good (as 
    defined in section 3(5)) that is a CAFTA-DR article.
        (3) De minimis supplying country.--
            (A) Subject to subparagraph (B), the term ``de minimis 
        supplying country'' means a CAFTA-DR country whose share of 
        imports of the relevant CAFTA-DR article into the United States 
        does not exceed 3 percent of the aggregate volume of imports of 
        the relevant CAFTA-DR article in the most recent 12-month 
        period for which data are available that precedes the filing of 
        the petition under section 311(a).
            (B) A CAFTA-DR country shall not be considered to be a de 
        minimis supplying country if the aggregate share of imports of 
        the relevant CAFTA-DR article into the United States of all 
        CAFTA-DR countries that satisfy the conditions of subparagraph 
        (A) exceeds 9 percent of the aggregate volume of imports of the 
        relevant CAFTA-DR article during the applicable 12-month 
        period.
        (4) Relevant cafta-dr article.--The term ``relevant CAFTA-DR 
    article'' means the CAFTA-DR article with respect to which a 
    petition has been filed under section 311(a).

     Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--A petition requesting action under this 
subtitle for the purpose of adjusting to the obligations of the United 
States under the Agreement may be filed with the Commission by an 
entity, including a trade association, firm, certified or recognized 
union, or group of workers, that is representative of an industry. The 
Commission shall transmit a copy of any petition filed under this 
subsection to the United States Trade Representative.
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the Commission, unless subsection (d) applies, 
shall promptly initiate an investigation to determine whether, as a 
result of the reduction or elimination of a duty provided for under the 
Agreement, a CAFTA-DR article is being imported into the United States 
in such increased quantities, in absolute terms or relative to domestic 
production, and under such conditions that imports of the CAFTA-DR 
article constitute a substantial cause of serious injury or threat 
thereof to the domestic industry producing an article that is like, or 
directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
        (1) Paragraphs (1)(B) and (3) of subsection (b).
        (2) Subsection (c).
        (3) Subsection (i).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any CAFTA-DR article if, 
after the date that the Agreement enters into force, import relief has 
been provided with respect to that CAFTA-DR article under this 
subtitle.

SEC. 312. COMMISSION ACTION ON PETITION.

    (a) Determination.--Not later than 120 days after the date on which 
an investigation is initiated under section 311(b) with respect to a 
petition, the Commission shall make the determination required under 
that section. At that time, the Commission shall also determine whether 
any CAFTA-DR country is a de minimis supplying country.
    (b) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under this 
section as if such determinations and findings were made under section 
202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination 
Affirmative.--If the determination made by the Commission under 
subsection (a) with respect to imports of an article is affirmative, or 
if the President may consider a determination of the Commission to be 
an affirmative determination as provided for under paragraph (1) of 
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)), the 
Commission shall find, and recommend to the President in the report 
required under subsection (d), the amount of import relief that is 
necessary to remedy or prevent the injury found by the Commission in 
the determination and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition. The 
import relief recommended by the Commission under this subsection shall 
be limited to the relief described in section 313(c). Only those 
members of the Commission who voted in the affirmative under subsection 
(a) are eligible to vote on the proposed action to remedy or prevent 
the injury found by the Commission. Members of the Commission who did 
not vote in the affirmative may submit, in the report required under 
subsection (d), separate views regarding what action, if any, should be 
taken to remedy or prevent the injury.
    (d) Report to President.--Not later than the date that is 30 days 
after the date on which a determination is made under subsection (a) 
with respect to an investigation, the Commission shall submit to the 
President a report that includes--
        (1) the determination made under subsection (a) and an 
    explanation of the basis for the determination;
        (2) if the determination under subsection (a) is affirmative, 
    any findings and recommendations for import relief made under 
    subsection (c) and an explanation of the basis for each 
    recommendation; and
        (3) any dissenting or separate views by members of the 
    Commission regarding the determination and recommendation referred 
    to in paragraphs (1) and (2).
    (e) Public Notice.--Upon submitting a report to the President under 
subsection (d), the Commission shall promptly make public such report 
(with the exception of information which the Commission determines to 
be confidential) and shall cause a summary thereof to be published in 
the Federal Register.

SEC. 313. PROVISION OF RELIEF.

    (a) In General.--Not later than the date that is 30 days after the 
date on which the President receives the report of the Commission in 
which the Commission's determination under section 312(a) is 
affirmative, or which contains a determination under section 312(a) 
that the President considers to be affirmative under paragraph (1) of 
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 
President, subject to subsection (b), shall provide relief from imports 
of the article that is the subject of such determination to the extent 
that the President determines necessary to remedy or prevent the injury 
found by the Commission and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition.
    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the 
provision of the import relief will not provide greater economic and 
social benefits than costs.
    (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 8.2.3 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), any import relief 
    that the President is authorized to provide under this section may 
    not, in the aggregate, be in effect for more than 4 years.
        (2) Extension.--
            (A) In general.--If the initial period for any import 
        relief provided under this section is less than 4 years, the 
        President, after receiving a determination from the Commission 
        under subparagraph (B) that is affirmative, or which the 
        President considers to be affirmative under paragraph (1) of 
        section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
        1330(d)(1)), may extend the effective period of any import 
        relief provided under this section, subject to the limitation 
        under paragraph (1), if the President determines that--
                (i) the import relief continues to be necessary to 
            remedy or prevent serious injury and to facilitate 
            adjustment by the domestic industry to import competition; 
            and
                (ii) there is evidence that the industry is making a 
            positive adjustment to import competition.
            (B) Action by commission.--(i) Upon a petition on behalf of 
        the industry concerned that is filed with the Commission not 
        earlier than the date which is 9 months, and not later than the 
        date which is 6 months, before the date on which any action 
        taken under subsection (a) is to terminate, the Commission 
        shall conduct an investigation to determine whether action 
        under this section continues to be necessary to remedy or 
        prevent serious injury and whether there is evidence that the 
        industry is making a positive adjustment to import competition.
            (ii) The Commission shall publish notice of the 
        commencement of any proceeding under this subparagraph in the 
        Federal Register and shall, within a reasonable time 
        thereafter, hold a public hearing at which the Commission shall 
        afford interested parties and consumers an opportunity to be 
        present, to present evidence, and to respond to the 
        presentations of other parties and consumers, and otherwise to 
        be heard.
            (iii) The Commission shall transmit to the President a 
        report on its investigation and determination under this 
        subparagraph not later than 60 days before the action under 
        subsection (a) is to terminate, unless the President specifies 
        a different date.
    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article--
        (1) the rate of duty on that article after such termination and 
    on or before December 31 of the year in which such termination 
    occurs shall be the rate that, according to the Schedule of the 
    United States to Annex 3.3 of the Agreement would have been in 
    effect 1 year after the provision of relief under subsection (a); 
    and
        (2) the rate of duty for that article after December 31 of the 
    year in which termination occurs shall be, at the discretion of the 
    President, either--
            (A) the applicable rate of duty for that article set out in 
        the Schedule of the United States to Annex 3.3 of the 
        Agreement; or
            (B) the rate of duty resulting from the elimination of the 
        tariff in equal annual stages ending on the date set out in the 
        Schedule of the United States to Annex 3.3 of the Agreement for 
        the elimination of the tariff.
    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on--
        (1) any article subject to import relief under chapter 1 of 
    title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.); or
        (2) imports of a CAFTA-DR article of a CAFTA-DR country that is 
    a de minimis supplying country with respect to that article.

SEC. 314. TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--Subject to subsection (b), no import relief may 
be provided under this subtitle after the date that is 10 years after 
the date on which the Agreement enters into force.
    (b) Exception.--If an article for which relief is provided under 
this subtitle is an article for which the period for tariff 
elimination, set out in the Schedule of the United States to Annex 3.3 
of the Agreement, is greater than 10 years, no relief under this 
subtitle may be provided for that article after the date on which that 
period ends.

SEC. 315. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 313 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

    Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 
is amended in the first sentence--
        (1) by striking ``and''; and
        (2) by inserting before the period at the end ``, and title III 
    of the Dominican Republic-Central America-United States Free Trade 
    Agreement Implementation Act''.

           Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

    (a) In General.--A request under this subtitle for the purpose of 
adjusting to the obligations of the United States under the Agreement 
may be filed with the President by an interested party. Upon the filing 
of a request, the President shall review the request to determine, from 
information presented in the request, whether to commence consideration 
of the request.
    (b) Publication of Request.--If the President determines that the 
request under subsection (a) provides the information necessary for the 
request to be considered, the President shall cause to be published in 
the Federal Register a notice of commencement of consideration of the 
request, and notice seeking public comments regarding the request. The 
notice shall include a summary of the request and the dates by which 
comments and rebuttals must be received.

SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

    (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 CAFTA-DR 
    textile or apparel article of a specified CAFTA-DR country is being 
    imported into the United States in such increased quantities, in 
    absolute terms or relative to the domestic market for that article, 
    and under such conditions as to cause serious damage, or actual 
    threat thereof, to a domestic industry producing an article that is 
    like, or directly competitive with, the imported article.
        (2) Serious damage.--In making a determination under paragraph 
    (1), the President--
            (A) shall examine the effect of increased imports on the 
        domestic industry, as reflected in changes in such relevant 
        economic factors as output, productivity, utilization of 
        capacity, inventories, market share, exports, wages, 
        employment, domestic prices, profits, and investment, none of 
        which is necessarily decisive; and
            (B) shall not consider changes in technology or consumer 
        preference as factors supporting a determination of serious 
        damage or actual threat thereof.
        (3) Deadline for determination.--The President shall make the 
    determination under paragraph (1) no later than 30 days after the 
    completion of any consultations held pursuant to article 3.23.4 of 
    the Agreement.
    (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.--Subject to subsection (b), any import relief that 
the President provides under subsection (b) of section 322 may not, in 
the aggregate, be in effect for more than 3 years.
    (b) Extension.--If the initial period for any import relief 
provided under section 322 is less than 3 years, the President may 
extend the effective period of any import relief provided under that 
section, subject to the limitation set forth in subsection (a), if the 
President determines that--
        (1) the import relief continues to be necessary to remedy or 
    prevent serious damage and to facilitate adjustment by the domestic 
    industry to import competition; and
        (2) there is evidence that the industry is making a positive 
    adjustment to import competition.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

    The President may not provide import relief under this subtitle 
with respect to any article if--
        (1) import relief previously has been provided under this 
    subtitle with respect to that article; or
        (2) the article is subject to import relief under--
            (A) subtitle A; or
            (B) chapter 1 of title II of the Trade Act of 1974.

SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

    When import relief under this subtitle is terminated with respect 
to an article, the rate of duty on that article shall be the rate that 
would have been in effect, but for the provision of such relief.

SEC. 326. TERMINATION OF RELIEF AUTHORITY.

    No import relief may be provided under this subtitle with respect 
to any article after the date that is 5 years after the date on which 
the Agreement enters into force.

SEC. 327. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under this subtitle 
shall be treated as action taken under chapter 1 of title II of that 
Act.

SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.

    The President may not release information received in connection 
with a review under this subtitle which the President considers to be 
confidential business information unless the party submitting the 
confidential business information had notice, at the time of 
submission, that such information would be released by the President, 
or such party subsequently consents to the release of the information. 
To the extent a party submits confidential business information, it 
shall also provide a nonconfidential version of the information in 
which the confidential business information is summarized or, if 
necessary, deleted.

       Subtitle C--Cases Under Title II of the Trade Act of 1974

SEC. 331. FINDINGS AND ACTION ON GOODS OF CAFTA-DR COUNTRIES.

    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974, the Commission makes an 
affirmative determination (or a determination which the President may 
treat as an affirmative determination under such chapter by reason of 
section 330(d) of the Tariff Act of 1930), the Commission shall also 
find (and report to the President at the time such injury determination 
is submitted to the President) whether imports of the article of each 
CAFTA-DR country that qualify as originating goods under section 203(b) 
are a substantial cause of serious injury or threat thereof.
    (b) Presidential Determination Regarding Imports of CAFTA-DR 
Countries.--In determining the nature and extent of action to be taken 
under chapter 1 of title II of the Trade Act of 1974, the President may 
exclude from the action goods of a CAFTA-DR country with respect to 
which the Commission has made a negative finding under subsection (a).

                        TITLE IV--MISCELLANEOUS

SEC. 401. ELIGIBLE PRODUCTS.

    Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C. 
2518(4)(A)) is amended--
        (1) by striking ``or'' at the end of clause (ii);
        (2) by striking the period at the end of clause (iii) and 
    inserting ``; or''; and
        (3) by adding at the end the following new clause:
                ``(iv) a party to the Dominican Republic-Central 
            America-United States Free Trade Agreement, a product or 
            service of that country or instrumentality which is covered 
            under that Agreement for procurement by the United 
            States.''.

SEC. 402. MODIFICATIONS TO THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT.

    (a) Former Beneficiary Countries.--Section 212(a)(1) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended 
by adding at the end the following new subparagraph:
            ``(F) The term `former beneficiary country' means a country 
        that ceases to be designated as a beneficiary country under 
        this title because the country has become a party to a free 
        trade agreement with the United States.''.
    (b) Countries Eligible for Designation as Beneficiary Countries.--
Section 212(b) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
2702(b)) is amended by striking from the list of countries eligible for 
designation as beneficiary countries--
        (1) ``Costa Rica'', effective on the date the President 
    terminates the designation of Costa Rica as a beneficiary country 
    pursuant to section 201(a)(3);
        (2) ``Dominican Republic'', effective on the date the President 
    terminates the designation of the Dominican Republic as a 
    beneficiary country pursuant to section 201(a)(3);
        (3) ``El Salvador'', effective on the date the President 
    terminates the designation of El Salvador as a beneficiary country 
    pursuant to section 201(a)(3);
        (4) ``Guatemala'', effective on the date the President 
    terminates the designation of Guatemala as a beneficiary country 
    pursuant to section 201(a)(3);
        (5) ``Honduras'', effective on the date the President 
    terminates the designation of Honduras as a beneficiary country 
    pursuant to section 201(a)(3); and
        (6) ``Nicaragua'', effective on the date the President 
    terminates the designation of Nicaragua as a beneficiary country 
    pursuant to section 201(a)(3).
    (c) Materials of, or Processing in, Former Beneficiary Countries.--
Section 213(a)(1) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703(a)(1)) is amended by striking ``the Commonwealth of Puerto 
Rico and the United States Virgin Islands'' and inserting ``the 
Commonwealth of Puerto Rico, the United States Virgin Islands, and any 
former beneficiary country''.
    (d) Definitions and Special Rules.--Section 213(b)(5) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)(5)) is amended 
by adding at the end the following new subparagraphs:
            ``(G) Former cbtpa beneficiary country.--The term `former 
        CBTPA beneficiary country' means a country that ceases to be 
        designated as a CBTPA beneficiary country under this title 
        because the country has become a party to a free trade 
        agreement with the United States.
            ``(H) Articles that undergo production in a cbtpa 
        beneficiary country and a former cbtpa beneficiary country.--
        (i) For purposes of determining the eligibility of an article 
        for preferential treatment under paragraph (2) or (3), 
        references in either such paragraph, and in subparagraph (C) of 
        this paragraph to--
                ``(I) a `CBTPA beneficiary country' shall be considered 
            to include any former CBTPA beneficiary country, and
                ``(II) `CBTPA beneficiary countries' shall be 
            considered to include former CBTPA beneficiary countries,
        if the article, or a good used in the production of the 
        article, undergoes production in a CBTPA beneficiary country.
            ``(ii) An article that is eligible for preferential 
        treatment under clause (i) shall not be ineligible for such 
        treatment because the article is imported directly from a 
        former CBTPA beneficiary country.
            ``(iii) Notwithstanding clauses (i) and (ii), an article 
        that is a good of a former CBTPA beneficiary country for 
        purposes of section 304 of the Tariff Act of 1930 (19 U.S.C. 
        1304) or section 334 of the Uruguay Round Agreements Act (19 
        U.S.C. 3592), as the case may be, shall not be eligible for 
        preferential treatment under paragraph (2) or (3), unless--
                ``(I) it is an article that is a good of the Dominican 
            Republic under either such section 304 or 334; and
                ``(II) the article, or a good used in the production of 
            the article, undergoes production in Haiti.''.

SEC. 403. PERIODIC REPORTS AND MEETINGS ON LABOR OBLIGATIONS AND LABOR 
              CAPACITY-BUILDING PROVISIONS.

    (a) Reports to Congress.--
        (1) In general.--Not later than the end of the 2-year period 
    beginning on the date the Agreement enters into force, and not 
    later than the end of each 2-year period thereafter during the 
    succeeding 14-year period, the President shall report to the 
    Congress on the progress made by the CAFTA-DR countries in--
            (A) implementing Chapter Sixteen and Annex 16.5 of the 
        Agreement; and
            (B) implementing the White Paper.
        (2) White paper.--In this section, the term ``White Paper'' 
    means the report of April 2005 of the Working Group of the Vice 
    Ministers Responsible for Trade and Labor in the Countries of 
    Central America and the Dominican Republic entitled ``The Labor 
    Dimension in Central America and the Dominican Republic - Building 
    on Progress: Strengthening Compliance and Enhancing Capacity''.
        (3) Contents of reports.--Each report under paragraph (1) shall 
    include the following:
            (A) A description of the progress made by the Labor 
        Cooperation and Capacity Building Mechanism established by 
        article 16.5 and Annex 16.5 of the Agreement, and the Labor 
        Affairs Council established by article 16.4 of the Agreement, 
        in achieving their stated goals, including a description of the 
        capacity-building projects undertaken, funds received, and 
        results achieved, in each CAFTA-DR country.
            (B) Recommendations on how the United States can facilitate 
        full implementation of the recommendations contained in the 
        White Paper.
            (C) A description of the work done by the CAFTA-DR 
        countries with the International Labor Organization to 
        implement the recommendations contained in the White Paper, and 
        the efforts of the CAFTA-DR countries with international 
        organizations, through the Labor Cooperation and Capacity 
        Building Mechanism referred to in subparagraph (A), to advance 
        common commitments regarding labor matters.
            (D) A summary of public comments received on--
                (i) capacity-building efforts by the United States 
            envisaged by article 16.5 and Annex 16.5 of the Agreement;
                (ii) efforts by the United States to facilitate full 
            implementation of the White Paper recommendations; and
                (iii) the efforts made by the CAFTA-DR countries to 
            comply with article 16.5 and Annex 16.5 of the Agreement 
            and to fully implement the White Paper recommendations, 
            including the progress made by the CAFTA-DR countries in 
            affording to workers internationally-recognized worker 
            rights through improved capacity.
        (4) Solicitation of public comments.--The President shall 
    establish a mechanism to solicit public comments for purposes of 
    paragraph (3)(D).
    (b) Periodic Meetings of Secretary of Labor With Labor Ministers of 
CAFTA-DR Countries.--
        (1) Periodic meetings.--The Secretary of Labor should take the 
    necessary steps to meet periodically with the labor ministers of 
    the CAFTA-DR countries to discuss--
            (A) the operation of the labor provisions of the Agreement;
            (B) progress on the commitments made by the CAFTA-DR 
        countries to implement the recommendations contained in the 
        White Paper;
            (C) the work of the International Labor Organization in the 
        CAFTA-DR countries, and other cooperative efforts, to afford to 
        workers internationally-recognized worker rights; and
            (D) such other matters as the Secretary of Labor and the 
        labor ministers consider appropriate.
        (2) Inclusion in biennial reports.--The President shall include 
    in each report under subsection (a), as the President deems 
    appropriate, summaries of the meetings held pursuant to paragraph 
    (1).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.