[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1642 Reported in Senate (RS)]

                                                       Calendar No. 190
112th CONGRESS
  1st Session
                                S. 1642

       To implement the United States-Korea Free Trade Agreement.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 3, 2011

  Mr. Baucus (for himself, Mr. Hatch, and Mr. McConnell) (by request) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

                            October 11, 2011

               Reported by Mr. Baucus, without amendment

_______________________________________________________________________

                                 A BILL


 
       To implement the United States-Korea 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.

    (a) Short Title.--This Act may be cited as the ``United States-
Korea Free Trade Agreement Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
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. Rules of origin.
Sec. 203. Customs user fees.
Sec. 204. Disclosure of incorrect information; false certifications of 
                            origin; denial of preferential tariff 
                            treatment.
Sec. 205. Reliquidation of entries.
Sec. 206. Recordkeeping requirements.
Sec. 207. Enforcement relating to trade in textile or apparel goods.
Sec. 208. Regulations.
                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.
     Subtitle A--Relief From Imports Benefitting 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--Motor Vehicle Safeguard Measures

Sec. 321. Motor vehicle safeguard measures.
           Subtitle C--Textile and Apparel Safeguard Measures

Sec. 331. Commencement of action for relief.
Sec. 332. Determination and provision of relief.
Sec. 333. Period of relief.
Sec. 334. Articles exempt from relief.
Sec. 335. Rate after termination of import relief.
Sec. 336. Termination of relief authority.
Sec. 337. Compensation authority.
Sec. 338. Confidential business information.
       Subtitle D--Cases Under Title II of the Trade Act of 1974

Sec. 341. Findings and action on Korean articles.
                         TITLE IV--PROCUREMENT

Sec. 401. Eligible products.
                            TITLE V--OFFSETS

Sec. 501. Increase in penalty on paid preparers who fail to comply with 
                            earned income tax credit due diligence 
                            requirements.
Sec. 502. Requirement for prisons located in the United States to 
                            provide information for tax administration.
Sec. 503. Rate for merchandise processing fees.
Sec. 504. Extension of customs user fees.
Sec. 505. Time for payment of corporate estimated taxes.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to approve and implement the free trade agreement 
        between the United States and Korea entered into under the 
        authority of section 2103(b) of the Bipartisan Trade Promotion 
        Authority Act of 2002 (19 U.S.C. 3803(b));
            (2) to secure the benefits of the agreement entered into 
        pursuant to an exchange of letters between the United States 
        and the Government of Korea on February 10, 2011;
            (3) to strengthen and develop economic relations between 
        the United States and Korea for their mutual benefit;
            (4) to establish free trade between the United States and 
        Korea through the reduction and elimination of barriers to 
        trade in goods and services and to investment; and
            (5) to lay the foundation for further cooperation to expand 
        and enhance the benefits of the Agreement.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agreement.--The term ``Agreement'' means the United 
        States-Korea Free Trade Agreement approved by Congress under 
        section 101(a)(1).
            (2) Commission.--The term ``Commission'' means the United 
        States International Trade Commission.
            (3) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (4) Korea.--The term ``Korea'' means the Republic of Korea.
            (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)).

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), Congress approves--
            (1) the United States-Korea Free Trade Agreement entered 
        into on June 30, 2007, with the Government of Korea, and 
        submitted to Congress on October 3, 2011; and
            (2) the statement of administrative action proposed to 
        implement the Agreement that was submitted to Congress on 
        October 3, 2011.
    (b) Conditions for Entry Into Force of the Agreement.--At such time 
as the President determines that Korea has taken measures necessary to 
comply with those provisions of the Agreement that are to take effect 
on the date on which the Agreement enters into force, the President is 
authorized to exchange notes with the Government of Korea providing for 
the entry into force, on or after January 1, 2012, of the Agreement 
with respect to the United States.

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 on 
        which 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 on 
        which 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 on 
        which 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 the committees 
        referred to in paragraph (2) regarding the proposed action 
        during the period referred to in paragraph (3).

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

    (a) Establishment or Designation of Office.--The President is 
authorized to establish or designate within the Department of Commerce 
an office that shall be responsible for providing administrative 
assistance to panels established under chapter 22 of the Agreement. The 
office shall 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 2011 to the 
Department of Commerce up to $750,000 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 22 of the Agreement.

SEC. 106. ARBITRATION OF CLAIMS.

    The United States is authorized to resolve any claim against the 
United States covered by article 11.16.1(a)(i)(C) or article 
11.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 
Dispute Settlement procedures set forth in section B of chapter 11 of 
the Agreement.

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), this 
Act and the amendments made by this Act take effect on the date on 
which the Agreement enters into force.
    (b) Exceptions.--
            (1) In general.--Sections 1 through 3, section 207(g), this 
        title, and title V take effect on the date of the enactment of 
        this Act.
            (2) Certain amendatory provisions.--The amendments made by 
        sections 203, 204, 206, and 401 of this Act take effect on the 
        date of the enactment of this Act and apply with respect to 
        Korea on the date on which the Agreement enters into force.
    (c) Termination of the Agreement.--On the date on which the 
Agreement terminates, this Act (other than this subsection and title V) 
and the amendments made by this Act (other than the amendments made by 
title V) shall cease to have effect.

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--The 
President may proclaim--
            (1) such modifications or continuation of any duty,
            (2) such continuation of duty-free or excise treatment, or
            (3) such additional duties,
as the President determines to be necessary or appropriate to carry out 
or apply articles 2.3, 2.5, and 2.6, and Annex 2-B, Annex 4-B, and 
Annex 22-A, of the Agreement.
    (b) 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 Korea regarding the staging of any duty treatment set 
        forth in Annex 2-B of the Agreement,
            (3) such continuation of duty-free or excise treatment, or
            (4) such additional duties,
as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Korea provided for by the Agreement.
    (c) 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 2-B 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.
    (d) Tariff Treatment of Motor Vehicles.--The President may proclaim 
the following tariff treatment with respect to the following motor 
vehicles of Korea:
            (1) Certain passenger cars.--In the case of originating 
        goods of Korea classifiable under subheading 8703.10.10, 
        8703.10.50, 8703.21.00, 8703.22.00, 8703.23.00, 8703.24.00, 
        8703.31.00, 8703.32.00, or 8703.33.00 of the HTS that are 
        entered, or withdrawn from warehouse for consumption--
                    (A) the rate of duty for such goods shall be 2.5 
                percent for year 1 of the Agreement through year 4 of 
                the Agreement; and
                    (B) such goods shall be free of duty for each year 
                thereafter.
            (2) Electric motor vehicles.--In the case of originating 
        goods of Korea classifiable under subheading 8703.90.00 of the 
        HTS that are entered, or withdrawn from warehouse for 
        consumption--
                    (A) the rate of duty for such goods shall be--
                            (i) 2.0 percent for year 1 of the 
                        Agreement;
                            (ii) 1.5 percent for year 2 of the 
                        Agreement;
                            (iii) 1.0 percent for year 3 of the 
                        Agreement; and
                            (iv) 0.5 percent for year 4 of the 
                        Agreement; and
                    (B) such goods shall be free of duty for each year 
                thereafter.
            (3) Certain trucks.--In the case of originating goods of 
        Korea classifiable under subheading 8704.21.00, 8704.22.50, 
        8704.23.00, 8704.31.00, 8704.32.00, or 8704.90.00 of the HTS 
        that are entered, or withdrawn from warehouse for consumption--
                    (A) the rate of duty for such goods shall be--
                            (i) 25 percent for year 1 of the Agreement 
                        through year 7 of the Agreement;
                            (ii) 16.6 percent for year 8 of the 
                        Agreement; and
                            (iii) 8.3 percent for year 9 of the 
                        Agreement; and
                    (B) such goods shall be free of duty for each year 
                thereafter.
            (4) Definitions.--In this subsection--
                    (A) the term ``year 1 of the Agreement'' means the 
                period beginning on the date, in a calendar year, on 
                which the Agreement enters into force and ending on 
                December 31 of that calendar year; and
                    (B) the terms ``year 2 of the Agreement'', ``year 3 
                of the Agreement'', ``year 4 of the Agreement'', ``year 
                5 of the Agreement'', ``year 6 of the Agreement'', 
                ``year 7 of the Agreement'', ``year 8 of the 
                Agreement'', and ``year 9 of the Agreement'' mean the 
                second, third, fourth, fifth, sixth, seventh, eighth, 
                and ninth calendar years, respectively, in which the 
                Agreement is in force.

SEC. 202. RULES OF ORIGIN.

    (a) 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 
        Korea or the United States).
    (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 Korea, the United States, or both;
            (2) the good--
                    (A) is produced entirely in the territory of Korea, 
                the United States, or both, and--
                            (i) each of the nonoriginating materials 
                        used in the production of the good undergoes an 
                        applicable change in tariff classification 
                        specified in Annex 4-A or Annex 6-A of the 
                        Agreement; or
                            (ii) the good otherwise satisfies any 
                        applicable regional value-content or other 
                        requirements specified in Annex 4-A or Annex 6-
                        A of the Agreement; and
                    (B) satisfies all other applicable requirements of 
                this section; or
            (3) the good is produced entirely in the territory of 
        Korea, the United States, or both, exclusively from materials 
        described in paragraph (1) or (2).
    (c) Regional Value-content.--
            (1) In general.--For purposes of subsection (b)(2), the 
        regional value-content of a good referred to in Annex 6-A 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 =                    ----------                x  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, other than 
                        indirect materials, that are acquired and used 
                        by the producer in the production of the good, 
                        but does not include the value of a material 
                        that is self-produced.
            (3) Build-up method.--
                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                build-up method:


                         VOM                      ......................
RVC =                    ----------                x  100.
                         AV                       ......................
 

                    (B) Definitions.--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, other than 
                        indirect 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 6-A of the Agreement may be 
                calculated by the importer, exporter, or producer of 
                the good on the basis of the build-down method 
                described in paragraph (2), the build-up method 
                described in paragraph (3), or the following net cost 
                method:


                         NC-VNM                   ......................
RVC =                    ----------                x  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 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, other than 
                        indirect materials, that are acquired and used 
                        by the producer in the production of the 
                        automotive good, but does not include the value 
                        of a material that is self-produced.
                    (C) 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 net cost formula contained in 
                        subparagraph (A), over the producer's fiscal 
                        year--
                                    (I) with respect to all motor 
                                vehicles in any one of the categories 
                                described in clause (ii); or
                                    (II) with respect to all motor 
                                vehicles in any such category that are 
                                exported to the territory of Korea or 
                                the United States.
                            (ii) 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 motor 
                                vehicles, and is produced in the same 
                                plant in the territory of Korea or the 
                                United States, as the good described in 
                                clause (i) for which regional value-
                                content is being calculated;
                                    (II) is the same class of motor 
                                vehicles, and is produced in the same 
                                plant in the territory of Korea or the 
                                United States, as the good described in 
                                clause (i) for which regional value-
                                content is being calculated; or
                                    (III) is the same model line of 
                                motor vehicles produced in the 
                                territory of Korea or the United States 
                                as the good described in clause (i) for 
                                which regional value-content is being 
                                calculated.
                    (D) Other automotive goods.--For purposes of 
                determining the regional value-content under 
                subparagraph (A) for automotive materials 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 net cost formula contained in subparagraph 
                        (A) over--
                                    (I) the fiscal year of the motor 
                                vehicle producer to whom the automotive 
                                goods are sold,
                                    (II) any quarter or month, or
                                    (III) the fiscal year of the 
                                producer of such goods,
                        if the goods were produced during the fiscal 
                        year, quarter, or month that is the basis for 
                        the calculation;
                            (ii) determine the average referred to in 
                        clause (i) separately for such goods sold to 1 
                        or more motor vehicle producers; or
                            (iii) make a separate determination under 
                        clause (i) or (ii) for such goods that are 
                        exported to the territory of Korea or the 
                        United States.
                    (E) Calculating net cost.--The importer, exporter, 
                or producer of an automotive good shall, consistent 
                with the provisions regarding allocation of costs 
                provided for in generally accepted accounting 
                principles, determine the net cost of the 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 these 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 (19 U.S.C. 3511(d)(8)), 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 by the producer; 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 Korea, the United States, or both, 
                        to the location of the producer.
                            (ii) Duties, taxes, and customs brokerage 
                        fees on the material paid in the territory of 
                        Korea, the United States, or both, other than 
                        duties or taxes that are waived, refunded, 
                        refundable, or otherwise recoverable, including 
                        credit against duty or tax paid or payable.
                            (iii) The cost of waste and spoilage 
                        resulting from the use of the material in the 
                        production of the good, less the value of 
                        renewable scrap or byproducts.
                    (B) 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 Korea, the United States, or both, 
                        to the location of the producer.
                            (ii) Duties, taxes, and customs brokerage 
                        fees on the material paid in the territory of 
                        Korea, the United States, or both, other than 
                        duties or taxes that are waived, refunded, 
                        refundable, or otherwise recoverable, including 
                        credit against duty or tax paid or payable.
                            (iii) The cost of waste and spoilage 
                        resulting from the use of the material in the 
                        production of the good, less the value of 
                        renewable scrap or byproducts.
                            (iv) The cost of originating materials used 
                        in the production of the nonoriginating 
                        material in the territory of Korea, the United 
                        States, or both.
    (e) Accumulation.--
            (1) Originating materials used in production of goods of 
        the other country.--Originating materials from the territory of 
        Korea or the United States that are used in the production of a 
        good in the territory of the other country shall be considered 
        to originate in the territory of such other country.
            (2) Multiple producers.--A good that is produced in the 
        territory of Korea, the United States, or both, 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 6-A of the Agreement is an 
        originating good if--
                    (A) the value of all nonoriginating materials used 
                in the production of the good that do not undergo the 
                applicable change in tariff classification (set forth 
                in Annex 6-A of the Agreement) does not exceed 10 
                percent of the adjusted value of the good;
                    (B) the good meets all other applicable 
                requirements of this section; and
                    (C) the value of such nonoriginating materials is 
                included in the value of nonoriginating materials for 
                any applicable regional value-content requirement for 
                the good.
            (2) Exceptions.--Paragraph (1) does not apply to the 
        following:
                    (A) A nonoriginating material provided for in 
                chapter 3 that is used in the production of a good 
                provided for in chapter 3.
                    (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 or 2106.90, that is 
                used in the production of a good provided for in 
                chapter 4.
                    (C) 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 any 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.
                    (D) A nonoriginating material provided for in 
                chapter 7 that is used in the production of a good 
                provided for in subheading 0703.10, 0703.20, 0709.59, 
                0709.60, 0711.90, 0712.20, 0714.20, or any of 
                subheadings 0710.21 through 0710.80 or 0712.39 through 
                0713.10.
                    (E) A nonoriginating material provided for in 
                heading 1006, or a nonoriginating rice product provided 
                for in chapter 11 that is used in the production of a 
                good provided for in heading 1006, 1102, 1103, 1104, or 
                subheading 1901.20 or 1901.90.
                    (F) A nonoriginating material provided for in 
                heading 0805, or any of subheadings 2009.11 through 
                2009.39, that is used in the production of a good 
                provided for in any of subheadings 2009.11 through 
                2009.39, or in fruit or vegetable juice of any single 
                fruit or vegetable, fortified with minerals or 
                vitamins, concentrated or unconcentrated, provided for 
                in subheading 2106.90 or 2202.90.
                    (G) Nonoriginating peaches, pears, or apricots 
                provided for in chapter 8 or 20 that are used in the 
                production of a good provided for in heading 2008.
                    (H) A nonoriginating material provided for in 
                chapter 15 that is used in the production of a good 
                provided for in any of headings 1501 through 1508, or 
                heading 1512, 1514, or 1515.
                    (I) A nonoriginating material provided for in 
                heading 1701 that is used in the production of a good 
                provided for in any of headings 1701 through 1703.
                    (J) A nonoriginating material provided for in 
                chapter 17 that is used in the production of a good 
                provided for in subheading 1806.10.
                    (K) Except as provided in subparagraphs (A) through 
                (J) and Annex 6-A of the Agreement, a nonoriginating 
                material used in the production of a good provided for 
                in any of chapters 1 through 24, unless the 
                nonoriginating material is provided for in a different 
                subheading than the good for which origin is being 
                determined under this section.
            (3) 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 forth in Annex 4-A of the Agreement, shall be 
                considered to be an originating good if the total 
                weight of all such fibers or yarns in that component is 
                not more than 7 percent of the total weight of that 
                component.
                    (B) Certain textile or apparel goods.--A textile or 
                apparel good containing elastomeric yarns in the 
                component of the good that determines the tariff 
                classification of the good shall be considered to be an 
                originating good only if such yarns are wholly formed 
                and finished in the territory of Korea, the United 
                States, or both.
                    (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 
                                country in which the production is 
                                performed (whether Korea or the United 
                                States); or
                                    (II) otherwise accepted by that 
                                country.
            (2) Election of inventory method.--A person selecting an 
        inventory management method under paragraph (1) for 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 such 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 forth in Annex 6-A 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; 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 forth 
in Annex 4-A or Annex 6-A 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 disregarded 
in determining whether a good is an originating good.
    (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 territory of Korea or the United States, other than 
        unloading, reloading, or any other operation necessary to 
        preserve the good in good condition or to transport the good to 
        the territory of Korea or the United States; or
            (2) does not remain under the control of customs 
        authorities in the territory of a country other than Korea or 
        the United States.
    (m) Goods Classifiable as Goods Put up in Sets.--Notwithstanding 
the rules set forth in Annex 4-A and Annex 6-A 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 goods, other than textile or 
                apparel goods, 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 (19 U.S.C. 
        3511(d)(8)), 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) 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.
            (3) 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.
            (4) Generally accepted accounting principles.--The term 
        ``generally accepted accounting principles''--
                    (A) means the recognized consensus or substantial 
                authoritative support given in the territory of Korea 
                or the United States, as the case may be, with respect 
                to the recording of revenues, expenses, costs, assets, 
                and liabilities, the disclosure of information, and the 
                preparation of financial statements; and
                    (B) may encompass broad guidelines for general 
                application as well as detailed standards, practices, 
                and procedures.
            (5) Good wholly obtained or produced entirely in the 
        territory of korea, the united states, or both.--The term 
        ``good wholly obtained or produced entirely in the territory of 
        Korea, the United States, or both'' means any of the following:
                    (A) Plants and plant products grown, and harvested 
                or gathered, in the territory of Korea, the United 
                States, or both.
                    (B) Live animals born and raised in the territory 
                of Korea, the United States, or both.
                    (C) Goods obtained in the territory of Korea, the 
                United States, or both from live animals.
                    (D) Goods obtained from hunting, trapping, fishing, 
                or aquaculture conducted in the territory of Korea, the 
                United States, or both.
                    (E) Minerals and other natural resources not 
                included in subparagraphs (A) through (D) that are 
                extracted or taken from the territory of Korea, the 
                United States, or both.
                    (F) Fish, shellfish, and other marine life taken 
                from the sea, seabed, or subsoil outside the territory 
                of Korea or the United States by--
                            (i) a vessel that is registered or recorded 
                        with Korea and flying the flag of Korea; or
                            (ii) a vessel that is documented under the 
                        laws of the United States.
                    (G) Goods produced on board a factory ship from 
                goods referred to in subparagraph (F), if such factory 
                ship--
                            (i) is registered or recorded with Korea 
                        and flies the flag of Korea; or
                            (ii) is a vessel that is documented under 
                        the laws of the United States.
                    (H)(i) Goods taken by Korea or a person of Korea 
                from the seabed or subsoil outside the territory of 
                Korea, the United States, or both, if Korea has rights 
                to exploit such seabed or subsoil; or
                    (ii) Goods taken by the United States or a person 
                of the United States from the seabed or subsoil outside 
                the territory of the United States, Korea, or both, if 
                the United States has rights to exploit such seabed or 
                subsoil.
                    (I) Goods taken from outer space, if the goods are 
                obtained by Korea or the United States or a person of 
                Korea or the United States and not processed in the 
                territory of a country other than Korea or the United 
                States.
                    (J) Waste and scrap derived from--
                            (i) manufacturing or processing operations 
                        in the territory of Korea, the United States, 
                        or both; or
                            (ii) used goods collected in the territory 
                        of Korea, the United States, or both, if such 
                        goods are fit only for the recovery of raw 
                        materials.
                    (K) Recovered goods derived in the territory of 
                Korea, the United States, or both, from used goods, and 
                used in the territory of Korea, the United States, or 
                both, in the production of remanufactured goods.
                    (L) Goods, at any stage of production, produced in 
                the territory of Korea, the United States, or both, 
                exclusively from--
                            (i) goods referred to in any of 
                        subparagraphs (A) through (J); or
                            (ii) the derivatives of goods referred to 
                        in clause (i).
            (6) Identical goods.--The term ``identical goods'' means 
        goods that are the same in all respects relevant to the rule of 
        origin that qualifies the goods as originating goods.
            (7) Indirect material.--The term ``indirect material'' 
        means a good used in the production, testing, or inspection of 
        another good but not physically incorporated into that other 
        good, or a good used in the maintenance of buildings or the 
        operation of equipment associated with the production of 
        another 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 good that is not incorporated into 
                the other good but the use of which in the production 
                of the other good can reasonably be demonstrated to be 
                a part of that production.
            (8) Material.--The term ``material'' means a good that is 
        used in the production of another good, including a part or an 
        ingredient.
            (9) 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.
            (10) Model line of motor vehicles.--The term ``model line 
        of motor vehicles'' means a group of motor vehicles having the 
        same platform or model name.
            (11) 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.
            (12) 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 country in which 
        the producer is located.
            (13) Nonoriginating good or nonoriginating material.--The 
        term ``nonoriginating good'' or ``nonoriginating material'' 
        means a good or material, as the case may be, that does not 
        qualify as originating under this section.
            (14) Packing materials and containers for shipment.--The 
        term ``packing materials and containers for shipment'' means 
        goods used to protect another good during its transportation 
        and does not include the packaging materials and containers in 
        which the other good is packaged for retail sale.
            (15) Preferential tariff treatment.--The term 
        ``preferential tariff treatment'' means the customs duty rate, 
        and the treatment under article 2.10.4 of the Agreement, that 
        are applicable to an originating good pursuant to the 
        Agreement.
            (16) Producer.--The term ``producer'' means a person who 
        engages in the production of a good in the territory of Korea 
        or the United States.
            (17) Production.--The term ``production'' means growing, 
        mining, harvesting, fishing, breeding, raising, trapping, 
        hunting, manufacturing, processing, assembling, or 
        disassembling a good.
            (18) Reasonably allocate.--The term ``reasonably allocate'' 
        means to apportion in a manner that would be appropriate under 
        generally accepted accounting principles.
            (19) 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.
            (20) Remanufactured good.--The term ``remanufactured good'' 
        means a good that is classified under chapter 84, 85, 87, or 90 
        or heading 9402, 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 good that is new.
            (21) Total cost.--
                    (A) In general.--The term ``total cost''--
                            (i) means all product costs, period costs, 
                        and other costs for a good incurred in the 
                        territory of Korea, the United States, or both; 
                        and
                            (ii) does not include profits that are 
                        earned by the producer, regardless of whether 
                        they are retained by the producer or paid out 
                        to other persons as dividends, or taxes paid on 
                        those profits, including capital gains taxes.
                    (B) Other definitions.--In this paragraph:
                            (i) Product costs.--The term ``product 
                        costs'' means costs that are associated with 
                        the production of a good and include the value 
                        of materials, direct labor costs, and direct 
                        overhead.
                            (ii) Period costs.--The term ``period 
                        costs'' means costs, other than product costs, 
                        that are expensed in the period in which they 
                        are incurred, such as selling expenses and 
                        general and administrative expenses.
                            (iii) Other costs.--The term ``other 
                        costs'' means all costs recorded on the books 
                        of the producer that are not product costs or 
                        period costs, such as interest.
            (22) Used.--The term ``used'' means utilized 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 forth in Annex 4-A and Annex 
                6-A of the Agreement; and
                    (B) any additional subordinate category that is 
                necessary to carry out this title consistent with the 
                Agreement.
            (2) 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-A of the Agreement).
                    (B) Additional proclamations.--Notwithstanding 
                subparagraph (A), and subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim--
                            (i) such modifications to the provisions 
                        proclaimed under the authority of paragraph 
                        (1)(A) as are necessary to implement an 
                        agreement with Korea pursuant to article 4.2.5 
                        of the Agreement; and
                            (ii) before the end of the 1-year period 
                        beginning on the date on which the Agreement 
                        enters into force, modifications to correct any 
                        typographical, clerical, or other 
                        nonsubstantive technical error regarding the 
                        provisions of chapters 50 through 63 (as 
                        included in Annex 4-A of the Agreement).
            (3) Fibers, yarns, or fabrics not available in commercial 
        quantities in the united states.--
                    (A) In general.--Notwithstanding paragraph (2)(A), 
                the list of fibers, yarns, and fabrics set forth in the 
                list of the United States in Appendix 4-B-1 of the 
                Agreement may be modified as provided for in this 
                paragraph.
                    (B) Definitions.--In this paragraph:
                            (i) Interested entity.--The term 
                        ``interested entity'' means the Government of 
                        Korea, a potential or actual purchaser of a 
                        textile or apparel good, or a potential or 
                        actual supplier of a textile or apparel good.
                            (ii) Day; days.--All references to ``day'' 
                        and ``days'' exclude Saturdays, Sundays, and 
                        legal holidays observed by the Government of 
                        the United States.
                    (C) Requests to add fibers, yarns, or fabrics.--
                            (i) In general.--An interested entity may 
                        request the President to determine that a 
                        fiber, yarn, or fabric is not available in 
                        commercial quantities in a timely manner in the 
                        United States and to add that fiber, yarn, or 
                        fabric to the list of the United States in 
                        Appendix 4-B-1 of the Agreement.
                            (ii) Determination.--After receiving a 
                        request under clause (i), the President may 
                        determine whether--
                                    (I) the fiber, yarn, or fabric is 
                                available in commercial quantities in a 
                                timely manner in the United States; or
                                    (II) any interested entity objects 
                                to the request.
                            (iii) Proclamation authority.--The 
                        President may, within the time periods 
                        specified in clause (iv), proclaim that the 
                        fiber, yarn, or fabric that is the subject of 
                        the request is added to the list of the United 
                        States in Appendix 4-B-1 of the Agreement, if 
                        the President has determined under clause (ii) 
                        that--
                                    (I) the fiber, yarn, or fabric is 
                                not available in commercial quantities 
                                in a timely manner in the United 
                                States; or
                                    (II) no interested entity has 
                                objected to the request.
                            (iv) Time periods.--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 a request is 
                                submitted under clause (i); or
                                    (II) not later than 60 days after 
                                the request is submitted, if the 
                                President determines, within 30 days 
                                after the date on which the request is 
                                submitted, that the President does not 
                                have sufficient information to make a 
                                determination under clause (ii).
                            (v) Effective date.--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.
                    (D) Deemed denial of request.--If, after an 
                interested entity submits a request under subparagraph 
                (C)(i), the President does not, within 30 days of the 
                expiration of the applicable time period specified in 
                subparagraph (C)(iv), make a determination under 
                subparagraph (C)(ii) regarding the request, the request 
                shall be considered to be denied.
                    (E) Requests to remove fibers, yarns, or fabrics.--
                            (i) In general.--An interested entity may 
                        request the President to remove from the list 
                        of the United States in Appendix 4-B-1 of the 
                        Agreement, any fiber, yarn, or fabric that has 
                        been added to that list pursuant to 
                        subparagraph (C)(iii).
                            (ii) Proclamation authority.--Not later 
                        than 30 days after the date on which a request 
                        under clause (i) is submitted, the President 
                        may proclaim that the fiber, yarn, or fabric 
                        that is the subject of the request is removed 
                        from the list of the United States in Appendix 
                        4-B-1 of the Agreement if the President 
                        determines that the fiber, yarn, or fabric is 
                        available in commercial quantities in a timely 
                        manner in the United States.
                            (iii) Effective date.--A proclamation 
                        issued under clause (ii) may not take effect 
                        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 
                        (E)(ii).

SEC. 203. 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 
(18) the following:
    ``(19) No fee may be charged under subsection (a) (9) or (10) with 
respect to goods that qualify as originating goods under section 202 of 
the United States-Korea 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. 204. 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 (11) as paragraph 
                (12); and
                    (B) by inserting after paragraph (10) the following 
                new paragraph:
            ``(11) Prior disclosure regarding claims under the united 
        states-korea free trade agreement.--An importer shall not be 
        subject to penalties under subsection (a) for making an 
        incorrect claim that a good qualifies as an originating good 
        under section 202 of the United States-Korea 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 with respect to that good.''; and
            (2) by adding at the end the following new subsection:
    ``(j) False Certifications of Origin Under the United States-Korea 
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 KFTA certification of origin (as defined in 
        section 508 of this Act) that a good exported from the United 
        States qualifies as an originating good under the rules of 
        origin provided for in section 202 of the United States-Korea 
        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 KFTA 
        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 shall not be considered to have 
        violated paragraph (1) if--
                    ``(A) the information was correct at the time it 
                was provided in a KFTA 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:
    ``(j) Denial of Preferential Tariff Treatment Under the United 
States-Korea Free Trade Agreement.--If U.S. Customs and Border 
Protection or U.S. Immigration and Customs Enforcement of the 
Department of Homeland Security 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 provided 
for in section 202 of the United States-Korea Free Trade Agreement 
Implementation Act, U.S. Customs and Border Protection, in accordance 
with regulations issued by the Secretary of the Treasury, may suspend 
preferential tariff treatment under the United States-Korea Free Trade 
Agreement Implementation Act to entries of identical goods covered by 
subsequent representations by that importer, exporter, or producer 
until U.S. Customs and Border Protection determines that 
representations of that person are in conformity with such section 
202.''.

SEC. 205. RELIQUIDATION OF ENTRIES.

    Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 1520(d)) is 
amended in the matter preceding paragraph (1)--
            (1) by striking ``or''; and
            (2) by striking ``for which'' and inserting ``, or section 
        202 of the United States-Korea Free Trade Agreement 
        Implementation Act for which''.

SEC. 206. RECORDKEEPING REQUIREMENTS.

    Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
            (1) by redesignating subsection (i) as subsection (j);
            (2) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Certifications of Origin for Goods Exported Under the United 
States-Korea 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) KFTA certification of origin.--The term `KFTA 
                certification of origin' means the certification 
                established under article 6.15 of the United States-
                Korea Free Trade Agreement that a good qualifies as an 
                originating good under such Agreement.
            ``(2) Exports to korea.--Any person who completes and 
        issues a KFTA 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.--The person who issues a KFTA 
        certification of origin shall keep the records and supporting 
        documents relating to that certification of origin for a period 
        of at least 5 years after the date on which the certification 
        is issued.''; and
            (3) in subsection (j), as so redesignated, by striking 
        ``(g), or (h)'' and inserting ``(g), (h), or (i)''.

SEC. 207. 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 Korea to conduct a verification pursuant to 
        article 4.3 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 of the Secretary that--
                    (A) an exporter or producer in Korea is complying 
                with applicable customs laws, regulations, procedures, 
                requirements, and practices affecting trade in textile 
                or apparel goods; or
                    (B) a claim that a textile or apparel good exported 
                or produced by such exporter or producer--
                            (i) qualifies as an originating good under 
                        section 202, or
                            (ii) is a good of Korea,
                is accurate.
    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
            (1) suspension of liquidation of the entry of any textile 
        or apparel good exported or produced by the person that is the 
        subject of a verification under subsection (a)(1) regarding 
        compliance described in subsection (a)(2)(A), in a case in 
        which the request for verification was based on a reasonable 
        suspicion of unlawful activity related to such goods; and
            (2) suspension of liquidation of the entry of a textile or 
        apparel good for which a claim has been made that is the 
        subject of a verification under subsection (a)(1) regarding a 
        claim described in subsection (a)(2)(B).
    (c) Action When Information Is Insufficient.--If the Secretary of 
the Treasury determines that the information obtained within 12 months 
after making a request for a verification under subsection (a)(1) is 
insufficient to make a determination under subsection (a)(2), 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); or
                    (B) the textile or apparel good for which a claim 
                has been made that is the subject of a verification 
                under subsection (a)(1) regarding a claim described in 
                subsection (a)(2)(B); and
            (2) denial of entry into the United States of--
                    (A) any textile or apparel good exported or 
                produced by the person that is the subject of a 
                verification under subsection (a)(1) regarding 
                compliance described in subsection (a)(2)(A); or
                    (B) a textile or apparel good for which a claim has 
                been made that is the subject of a verification under 
                subsection (a)(1) regarding a claim described in 
                subsection (a)(2)(B).
    (e) Publication of Name of Person.--In accordance with article 
4.3.11 of the Agreement, the Secretary of the Treasury may publish the 
name of any person that the Secretary has determined--
            (1) is engaged in circumvention of applicable laws, 
        regulations, or procedures affecting trade in textile or 
        apparel goods; or
            (2) has failed to demonstrate that it produces, or is 
        capable of producing, textile or apparel goods.
    (f) Certificate of Eligibility.--The Commissioner responsible for 
U.S. Customs and Border Protection of the Department of Homeland 
Security may require an importer to submit at the time the importer 
files a claim for preferential tariff treatment under Annex 4-B of the 
Agreement a certificate of eligibility, properly completed and signed 
by an authorized official of the Government of Korea.
    (g) Verifications in the United States.--If the government of a 
country that is a party to a free trade agreement with the United 
States makes a request for a verification pursuant to that agreement, 
the Secretary of the Treasury may request a verification of the 
production of any textile or apparel good in order to assist that 
government in determining whether--
            (1) a claim of origin under the agreement for a textile or 
        apparel good is accurate; or
            (2) an exporter, producer, or other enterprise located in 
        the United States involved in the movement of textile or 
        apparel goods from the United States to the territory of the 
        requesting government is complying with applicable customs 
        laws, regulations, and procedures regarding trade in textile or 
        apparel goods.

SEC. 208. REGULATIONS.

    The Secretary of the Treasury shall prescribe such regulations as 
may be necessary to carry out--
            (1) subsections (a) through (n) of section 202;
            (2) the amendment made by section 203; and
            (3) any proclamation issued under section 202(o).

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

    In this title:
            (1) Korean article.--The term ``Korean article'' means an 
        article that qualifies as an originating good under section 
        202(b).
            (2) Korean motor vehicle article.--The term ``Korean motor 
        vehicle article'' means a good provided for in heading 8703 or 
        8704 of the HTS that qualifies as an originating good under 
        section 202(b).
            (3) Korean textile or apparel article.--The term ``Korean 
        textile or apparel article'' means a textile or apparel good 
        (as defined in section 3(5)) that is a Korean article.

     Subtitle A--Relief From Imports Benefitting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--
            (1) In general.--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.
            (2) Provisional relief.--An entity filing a petition under 
        this subsection may request that provisional relief be provided 
        as if the petition had been filed under section 202(a) of the 
        Trade Act of 1974 (19 U.S.C. 2252(a)).
            (3) Critical circumstances.--Any allegation that critical 
        circumstances exist shall be included in the petition.
    (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 Korean 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 Korean 
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 (d).
            (4) Subsection (i).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Korean article if, 
after the date on which the Agreement enters into force, import relief 
has been provided with respect to that Korean article under this 
subtitle.

SEC. 312. COMMISSION ACTION ON PETITION.

    (a) Determination.--Not later than 120 days (180 days if critical 
circumstances have been alleged) after the date on which an 
investigation is initiated under section 311(b) with respect to a 
petition, the Commission shall make the determination required under 
that section.
    (b) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under this 
section as if such determinations and findings were made under section 
202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination 
Affirmative.--
            (1) In general.--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)(1)), 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.
            (2) Limitation on relief.--The import relief recommended by 
        the Commission under this subsection shall be limited to the 
        relief described in section 313(c).
            (3) Voting; separate views.--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 referred to in paragraph 
        (1) and any finding or recommendation referred to in paragraph 
        (2).
    (e) Public Notice.--Upon submitting a report to the President under 
subsection (d), the Commission shall promptly make public the report 
(with the exception of information which the Commission determines to 
be confidential) and shall publish a summary of the report 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 a 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.--Except as provided in paragraph (2), 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 2-B of the Agreement in the 
                duty imposed on the article.
                    (B) An increase in the rate of duty imposed on the 
                article to a level that does not exceed the lesser of--
                            (i) the column 1 general rate of duty 
                        imposed under the HTS on like articles at the 
                        time the import relief is provided; or
                            (ii) the column 1 general rate of duty 
                        imposed under the HTS on like articles on the 
                        day before the date on which the Agreement 
                        enters into force.
            (2) Duties applied on a seasonal basis.--In the case of 
        imports of an article to which a duty is applied on a seasonal 
        basis, the import relief that the President is authorized to 
        provide under this section is as follows:
                    (A) The suspension of any further reduction 
                provided for under Annex 2-B of the Agreement in the 
                duty imposed on the article.
                    (B) An increase in the rate of duty imposed on the 
                article to a level that does not exceed the lesser of--
                            (i) the column 1 general rate of duty 
                        imposed under the HTS on like articles for the 
                        corresponding season immediately preceding the 
                        date the import relief is provided; or
                            (ii) the column 1 general rate of duty 
                        imposed under the HTS for the corresponding 
                        season immediately preceding the date on which 
                        the Agreement enters into force.
            (3) 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 10.2.7 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 provides under this section may not 
        be in effect for more than 2 years.
            (2) Extension.--
                    (A) In general.--Subject to subparagraph (C), 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 by up to 1 year, 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) Investigation.--Upon a petition on 
                        behalf of the industry concerned that is filed 
                        with the Commission not earlier than the date 
                        that is 9 months, and not later than the date 
                        that 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) Notice and hearing.--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) Report.--The Commission shall submit 
                        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.
                    (C) Period of import relief.--Any import relief 
                provided under this section, including any extensions 
                thereof, may not, in the aggregate, be in effect for 
                more than 3 years.
    (e) Rate After Termination of Import Relief.--Beginning on the date 
on which import relief under this section 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.
    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on any article that is subject to import relief 
under--
            (1) subtitle B or C; or
            (2) chapter 1 of title II of the Trade Act of 1974 (19 
        U.S.C. 2251 et seq.).

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 forth in the Schedule of the United States to Annex 2-
B 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.
    (c) Presidential Determination.--Import relief may be provided 
under this subtitle in the case of a Korean article after the date on 
which such relief would, but for this subsection, terminate under 
subsection (a) and (b), if the President determines that Korea has 
consented to such relief.

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 (19 U.S.C. 2251 et seq.).

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

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

              Subtitle B--Motor Vehicle Safeguard Measures

SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES.

    The provisions of subtitle A shall apply with respect to a Korean 
motor vehicle article to the same extent that such provisions apply to 
Korean articles, except as follows:
            (1) Section 311(d) and paragraphs (2) and (3) of 313(c) 
        shall not apply.
            (2) Section 313(d)(2)(A) shall be applied and administered 
        by substituting ``2 years'' for ``1 year''.
            (3) Section 313(d)(2)(C) shall be applied and administered 
        by substituting ``4 years'' for ``3 years''.
            (4) Section 313(f)(1) shall be applied and administered by 
        substituting ``subtitle A'' for ``subtitle B or C''.
            (5) Section 314(b) shall be applied and administered as if 
        such section read as follows:
    ``(b) Exception.--Import relief may be provided under this subtitle 
with respect to a Korean motor vehicle article during any period before 
the date that is 10 years after the date on which duties on the article 
are eliminated, as set forth in section 201(d), or, if the article is 
not referred to in section 201(d), the Schedule of the United States to 
Annex 2-B of the Agreement.''.

           Subtitle C--Textile and Apparel Safeguard Measures

SEC. 331. COMMENCEMENT OF ACTION FOR RELIEF.

    (a) In General.--A request for action 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 publish 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. 332. DETERMINATION AND PROVISION OF RELIEF.

    (a) Determination.--
            (1) In general.--If a positive determination is made under 
        section 331(b), the President shall determine whether, as a 
        result of the reduction or elimination of a duty under the 
        Agreement, a Korean textile or apparel article is being 
        imported into the United States in such increased quantities, 
        in absolute terms or relative to the domestic market for that 
        article, and under such conditions as to cause serious damage, 
        or actual threat thereof, to a domestic industry producing an 
        article that is like, or directly competitive with, the 
        imported article.
            (2) Serious damage.--In making a determination under 
        paragraph (1), the President--
                    (A) shall examine the effect of increased imports 
                on the domestic industry, as reflected in changes in 
                such relevant economic factors as output, productivity, 
                utilization of capacity, inventories, market share, 
                exports, wages, employment, domestic prices, profits, 
                and investment, no one of which is necessarily 
                decisive; and
                    (B) shall not consider changes in technology or 
                consumer preference as factors supporting a 
                determination of serious damage or actual threat 
                thereof.
    (b) 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--
                    (A) the suspension of any further reduction 
                provided for under Annex 2-B of the Agreement in the 
                duty imposed on the article; or
                    (B) an increase in the rate of duty imposed on the 
                article to a level that does not exceed the lesser of--
                            (i) the column 1 general rate of duty 
                        imposed under the HTS on like articles at the 
                        time the import relief is provided; or
                            (ii) the column 1 general rate of duty 
                        imposed under the HTS on like articles on the 
                        day before the date on which the Agreement 
                        enters into force.

SEC. 333. PERIOD OF RELIEF.

    (a) In General.--Subject to subsection (b), the import relief that 
the President provides under section 332(b) may not be in effect for 
more than 2 years.
    (b) Extension.--
            (1) In general.--Subject to paragraph (2), the President 
        may extend the effective period of any import relief provided 
        under this subtitle for a period of not more than 2 years, if 
        the President determines that--
                    (A) the import relief continues to be necessary to 
                remedy or prevent serious damage and to facilitate 
                adjustment by the domestic industry to import 
                competition; and
                    (B) there is evidence that the industry is making a 
                positive adjustment to import competition.
            (2) Limitation.--Any relief provided under this subtitle, 
        including any extensions thereof, may not, in the aggregate, be 
        in effect for more than 4 years.

SEC. 334. ARTICLES EXEMPT FROM RELIEF.

    The President may not provide import relief under this subtitle 
with respect to an article if--
            (1) import relief previously has been provided under this 
        subtitle with respect to that article; or
            (2) the article is subject to import relief under--
                    (A) subtitle A; or
                    (B) chapter 1 of title II of the Trade Act of 1974 
                (19 U.S.C. 2251 et seq.).

SEC. 335. RATE AFTER TERMINATION OF IMPORT RELIEF.

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

SEC. 336. TERMINATION OF RELIEF AUTHORITY.

    No import relief may be provided under this subtitle with respect 
to any article after the date that is 10 years after the date on which 
duties on the article are eliminated pursuant to the Agreement.

SEC. 337. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (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 such 
Act (19 U.S.C. 2251 et seq.).

SEC. 338. CONFIDENTIAL BUSINESS INFORMATION.

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

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

SEC. 341. FINDINGS AND ACTION ON KOREAN ARTICLES.

    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
seq.), 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 (19 U.S.C. 1330(d))), 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 Korean article are a 
substantial cause of serious injury or threat thereof.
    (b) Presidential Determination Regarding Korean Articles.--In 
determining the nature and extent of action to be taken under chapter 1 
of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), the 
President may exclude from the action Korean articles with respect to 
which the Commission has made a negative finding under subsection (a).

                         TITLE IV--PROCUREMENT

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 (vi);
            (2) by striking the period at the end of clause (vii) and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                            ``(viii) a party to the United States-Korea 
                        Free Trade Agreement, a product or service of 
                        that country or instrumentality which is 
                        covered under that agreement for procurement by 
                        the United States.''.

                            TITLE V--OFFSETS

SEC. 501. INCREASE IN PENALTY ON PAID PREPARERS WHO FAIL TO COMPLY WITH 
              EARNED INCOME TAX CREDIT DUE DILIGENCE REQUIREMENTS.

    (a) In General.--Section 6695(g) of the Internal Revenue Code of 
1986 is amended by striking ``$100'' and inserting ``$500''.
    (b) Effective Date.--The amendment made by this section shall apply 
to returns required to be filed after December 31, 2011.

SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE UNITED STATES TO 
              PROVIDE INFORMATION FOR TAX ADMINISTRATION.

    (a) In General.--Subchapter B of chapter 61 of the Internal Revenue 
Code of 1986 is amended by redesignating section 6116 as section 6117 
and by inserting after section 6115 the following new section:

``SEC. 6116. REQUIREMENT FOR PRISONS LOCATED IN UNITED STATES TO 
              PROVIDE INFORMATION FOR TAX ADMINISTRATION.

    ``(a) In General.--Not later than September 15, 2012, and annually 
thereafter, the head of the Federal Bureau of Prisons and the head of 
any State agency charged with the responsibility for administration of 
prisons shall provide to the Secretary in electronic format a list with 
the information described in subsection (b) of all the inmates 
incarcerated within the prison system for any part of the prior 2 
calendar years or the current calendar year through August 31.
    ``(b) Information.--The information with respect to each inmate 
is--
            ``(1) first, middle, and last name,
            ``(2) date of birth,
            ``(3) institution of current incarceration or, for released 
        inmates, most recent incarceration,
            ``(4) prison assigned inmate number,
            ``(5) the date of incarceration,
            ``(6) the date of release or anticipated date of release,
            ``(7) the date of work release,
            ``(8) taxpayer identification number and whether the prison 
        has verified such number,
            ``(9) last known address, and
            ``(10) any additional information as the Secretary may 
        request.
    ``(c) Format.--The Secretary shall determine the electronic format 
of the information described in subsection (b).''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
is amended by striking the item relating to section 6116 and by adding 
at the end the following new items:

``Sec. 6116. Requirement for prisons located in United States to 
                            provide information for tax administration.
``Sec. 6117. Cross reference.''.

SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES.

    For the period beginning on December 1, 2015, and ending on June 
30, 2021, section 13031(a)(9) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be applied and 
administered--
            (1) in subparagraph (A), by substituting ``0.3464'' for 
        ``0.21''; and
            (2) in subparagraph (B)(i), by substituting ``0.3464'' for 
        ``0.21''.

SEC. 504. EXTENSION OF CUSTOMS USER FEES.

    (a) In General.--Section 13031(j)(3)(A) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) is amended 
by striking ``January 7, 2020'' and inserting ``August 2, 2021''.
    (b) Other Fees.--Section 13031(j)(3)(B)(i) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i)) 
is amended by striking ``January 14, 2020'' and inserting ``December 8, 
2020''.

SEC. 505. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    Notwithstanding section 6655 of the Internal Revenue Code of 1986, 
in the case of a corporation with assets of not less than 
$1,000,000,000 (determined as of the end of the preceding taxable 
year)--
            (1) the amount of any required installment of corporate 
        estimated tax which is otherwise due in July, August, or 
        September of 2012 shall be increased by 0.25 percent of such 
        amount (determined without regard to any increase in such 
        amount not contained in such Code);
            (2) the amount of any required installment of corporate 
        estimated tax which is otherwise due in July, August, or 
        September of 2016 shall be increased by 2.75 percent of such 
        amount (determined without regard to any increase in such 
        amount not contained in such Code); and
            (3) the amount of the next required installment after an 
        installment referred to in paragraph (1) or (2) shall be 
        appropriately reduced to reflect the amount of the increase by 
        reason of such paragraph.
                                                       Calendar No. 190

112th CONGRESS

  1st Session

                                S. 1642

_______________________________________________________________________

                                 A BILL

       To implement the United States-Korea Free Trade Agreement.

_______________________________________________________________________

                            October 11, 2011

                       Reported without amendment