[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.