1.
(a)This Act may be cited
as the United States–Korea Free Trade
Agreement Implementation Act
.
(b)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.
2.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.
3.In this Act:
(1)The
term Agreement means the United States–Korea Free Trade Agreement
approved by Congress under section 101(a)(1).
(2)The
term Commission means the United States International Trade
Commission.
(3)The
term HTS means the Harmonized Tariff Schedule of the United
States.
(4)The
term Korea means the Republic of Korea.
(5)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)).
<enum>I</enum><header>Approval of, and
general provisions relating to, the Agreement</header>
<section id="id1E074635E3E24E32BF385858972558EE"><enum>101.</enum><header>Approval and
entry into force of the Agreement</header>
<subsection id="IDfde89397a71e437da68b566a22c477a9"><enum>(a)</enum><header>Approval of
agreement and statement of administrative action</header><text>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—</text>
<paragraph id="IDb8071bee8a9f4dfab398f4547f93a34b"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="ID07ea491cbc404dbbb96ad03e6c8d2861"><enum>(2)</enum><text>the statement of
administrative action proposed to implement the Agreement that was submitted to
Congress on October 3, 2011.</text>
</paragraph></subsection><subsection id="IDcccfd1e53b1f4fc7818290cff40e2ab0"><enum>(b)</enum><header>Conditions for
entry into force of the agreement</header><text>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.</text>
</subsection></section><section id="IDd315ca708f344cb0bf6aeffe99cd6d75"><enum>102.</enum><header>Relationship
of the Agreement to United States and State law</header>
<subsection id="IDf5da85b661674cdeac5d086fa1a75d6d"><enum>(a)</enum><header>Relationship of
agreement to United States law</header>
<paragraph id="ID22752a8e7b59450c8e3ddb86ac7099f1"><enum>(1)</enum><header>United States
law to prevail in conflict</header><text>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.</text>
</paragraph><paragraph id="ID6155518579de4eb4b66989978a99af95"><enum>(2)</enum><header>Construction</header><text>Nothing
in this Act shall be construed—</text>
<subparagraph id="ID27de378ba1db4aca8bce744bba8777a4"><enum>(A)</enum><text>to amend or
modify any law of the United States, or</text>
</subparagraph><subparagraph id="IDf60aead904f642058f643b30b1531a69"><enum>(B)</enum><text>to limit any
authority conferred under any law of the United States,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">unless
specifically provided for in this Act.</continuation-text></paragraph></subsection><subsection id="ID3155fcf4248840e7a38bfda3233a43c2"><enum>(b)</enum><header>Relationship of
agreement to State law</header>
<paragraph id="IDa910f2a1353e4130bcd118f590abe356"><enum>(1)</enum><header>Legal
challenge</header><text>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.</text>
</paragraph><paragraph id="ID72ce70e525f54a2195110f48fe65da37"><enum>(2)</enum><header>Definition of
State law</header><text>For purposes of this subsection, the term <term>State
law</term> includes—</text>
<subparagraph id="ID26ae10a35b68400fa7612f37a69ee49d"><enum>(A)</enum><text>any law of a
political subdivision of a State; and</text>
</subparagraph><subparagraph id="IDa83b79f92b7544768eb7abf2638c096f"><enum>(B)</enum><text>any State law
regulating or taxing the business of insurance.</text>
</subparagraph></paragraph></subsection><subsection id="ID90c16dd467d2416ab4910e6be18b506f"><enum>(c)</enum><header>Effect of
agreement with respect to private remedies</header><text>No person other than
the United States—</text>
<paragraph id="ID86f0660feb324b4cbb27766208b45929"><enum>(1)</enum><text>shall have any
cause of action or defense under the Agreement or by virtue of congressional
approval thereof; or</text>
</paragraph><paragraph id="ID68bfafabfc9e4d758f061d773dd889b8"><enum>(2)</enum><text>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.</text>
</paragraph></subsection></section><section id="ID80e60843e00d4ea58c0c2ce32ae9323c"><enum>103.</enum><header>Implementing
actions in anticipation of entry into force and initial regulations</header>
<subsection id="ID2f484fc7a481475aaa1945c73d8a1024"><enum>(a)</enum><header>Implementing
actions</header>
<paragraph id="IDce449233fd3446868052f70566a8a903"><enum>(1)</enum><header>Proclamation
authority</header><text>After the date of the enactment of this Act—</text>
<subparagraph id="ID995f28df2ea24cc4a78b70132f9d3cbe"><enum>(A)</enum><text>the President may
proclaim such actions, and</text>
</subparagraph><subparagraph id="IDb7c4daf6ea614dc7891352a38f67dd7c"><enum>(B)</enum><text>other appropriate
officers of the United States Government may issue such regulations,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="ID3cc68159bbb84d58b92b861065488643"><enum>(2)</enum><header>Effective date
of certain proclaimed actions</header><text>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.</text>
</paragraph><paragraph id="IDf19553fb819346a6840411fe05a9091e"><enum>(3)</enum><header>Waiver of
15-day restriction</header><text>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.</text>
</paragraph></subsection><subsection id="IDfac014cdf9394df29da2438aa0bd8466"><enum>(b)</enum><header>Initial
regulations</header><text>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.</text>
</subsection></section><section id="IDe01627d08c56482cbe48f2ee55806f25"><enum>104.</enum><header>Consultation
and layover provisions for, and effective date of, proclaimed
actions</header><text display-inline="no-display-inline">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—</text>
<paragraph id="ID4fed0bd8646946c885dd1846f22bf65c"><enum>(1)</enum><text>the President has
obtained advice regarding the proposed action from—</text>
<subparagraph id="IDb832d1325a5140bf8c83dffb0957d1c1"><enum>(A)</enum><text>the appropriate
advisory committees established under section 135 of the Trade Act of 1974 (19
U.S.C. 2155); and</text>
</subparagraph><subparagraph id="IDd514de3ef3464eeb8119f2ca99dca740"><enum>(B)</enum><text>the
Commission;</text>
</subparagraph></paragraph><paragraph id="ID34704b7ade3d45e18a62240bc18d486e"><enum>(2)</enum><text>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—</text>
<subparagraph id="ID5352a1ab96aa4f96be646cd215e06a5f"><enum>(A)</enum><text>the action
proposed to be proclaimed and the reasons therefor; and</text>
</subparagraph><subparagraph id="ID50c2b0b0883f49c08354a0215404dea0"><enum>(B)</enum><text>the advice
obtained under paragraph (1);</text>
</subparagraph></paragraph><paragraph id="ID4129b90872bc4acd93801e37b0533f48"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="ID82fb054cb91c4474bed4422da34e463f"><enum>(4)</enum><text>the President has
consulted with the committees referred to in paragraph (2) regarding the
proposed action during the period referred to in paragraph (3).</text>
</paragraph></section><section id="IDd63a7e4bc97c4a308c6b90eef9534893"><enum>105.</enum><header>Administration
of dispute settlement proceedings</header>
<subsection id="IDd70b23653f0a4eb79163fbbef2a24ac8"><enum>(a)</enum><header>Establishment
or designation of office</header><text>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.</text>
</subsection><subsection id="ID3454904ad2ac41debd2ef838d65f0931"><enum>(b)</enum><header>Authorization
of appropriations</header><text>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.</text>
</subsection></section><section id="IDb84751cc285a412fa384d454342b7a63"><enum>106.</enum><header>Arbitration of
claims</header><text display-inline="no-display-inline">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.</text>
</section><section id="IDd2fa13fee753479eb8fd480cc3822cbd"><enum>107.</enum><header>Effective
dates; effect of termination</header>
<subsection id="ID45da963e47fe4928bf2510d4a2ec0d16"><enum>(a)</enum><header>Effective
dates</header><text>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.</text>
</subsection><subsection id="ID084713a997994a25ae108ebf4b6be4e3"><enum>(b)</enum><header>Exceptions</header>
<paragraph id="id76BB92A2F5FA4CF5909BFED72C2E4308"><enum>(1)</enum><header>In
general</header><text>Sections 1 through 3, section 207(g), this title, and
title V take effect on the date of the enactment of this Act.</text>
</paragraph><paragraph id="idCCA362F9B43B4AACACB83E08805CDC2F"><enum>(2)</enum><header>Certain
amendatory provisions</header><text>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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID53946efe845247f4bf634811e2f1caf7"><enum>(c)</enum><header>Termination of
the agreement</header><text>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.</text>
</subsection></section><enum>II</enum><header>Customs
provisions</header>
<section id="id23D3B12B363C4D81A8EB18F80A65AF82"><enum>201.</enum><header>Tariff
modifications</header>
<subsection id="ID94fb203c4e96434ba2a8734204f8f55a"><enum>(a)</enum><header>Tariff
modifications provided for in the agreement</header><text>The President may
proclaim—</text>
<paragraph id="ID4ac9f8e82fb44cfdb3fc3908b86f98b4"><enum>(1)</enum><text>such
modifications or continuation of any duty,</text>
</paragraph><paragraph id="ID6e629257e2fe44159a8f5b451ab38095"><enum>(2)</enum><text>such continuation
of duty-free or excise treatment, or</text>
</paragraph><paragraph id="ID5ff97072e8db481cb244bf9c61528e9a"><enum>(3)</enum><text>such additional
duties,</text>
</paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="ID461d9434971c40dc9126bea420e00c96"><enum>(b)</enum><header>Other tariff
modifications</header><text>Subject to the consultation and layover provisions
of section 104, the President may proclaim—</text>
<paragraph id="IDace7d651979f4d63838ce3838dc8b10f"><enum>(1)</enum><text>such
modifications or continuation of any duty,</text>
</paragraph><paragraph id="ID554f7043a18549dba207fe546f0199d4"><enum>(2)</enum><text>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,</text>
</paragraph><paragraph id="ID1baadc8619824fa58ab1e8f721c89acc"><enum>(3)</enum><text>such continuation
of duty-free or excise treatment, or</text>
</paragraph><paragraph id="ID58b88998de0a4764a15c0b6f0f70a638"><enum>(4)</enum><text>such additional
duties,</text>
</paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="IDbe48ec335dec41b7a7360e4d032df728"><enum>(c)</enum><header>Conversion to
ad valorem rates</header><text>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.</text>
</subsection><subsection commented="no" id="H96F742A8198143B896153E2FC15ACAAB"><enum>(d)</enum><header>Tariff treatment
of motor vehicles</header><text>The President may proclaim the following tariff
treatment with respect to the following motor vehicles of Korea:</text>
<paragraph commented="no" id="HFACEE044DEAB41268B18B30C51E37606"><enum>(1)</enum><header>Certain
passenger cars</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" id="H0E8F0C4193844A4995027A129A1BB3E0"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph commented="no" id="HB56243BADA8743F48B2AAAC2E66D9110"><enum>(B)</enum><text display-inline="yes-display-inline">such goods shall be free of duty for each
year thereafter.</text>
</subparagraph></paragraph><paragraph commented="no" id="H20C4090AF3A74FEFA4B962B9983C70E9"><enum>(2)</enum><header>Electric motor
vehicles</header><text>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—</text>
<subparagraph commented="no" id="HB710FE8607BC402C84F10C1165C04115"><enum>(A)</enum><text display-inline="yes-display-inline">the rate of duty for such goods shall
be—</text>
<clause commented="no" id="HFA77E0EB7F0D4B6B88EC5881D32C89C6"><enum>(i)</enum><text display-inline="yes-display-inline">2.0 percent for year 1 of the
Agreement;</text>
</clause><clause commented="no" id="H7BC983EC934848F6950C4C641AA1C20E"><enum>(ii)</enum><text display-inline="yes-display-inline">1.5 percent for year 2 of the
Agreement;</text>
</clause><clause commented="no" id="H8B9BF25A770D45A4B412AE77D93B149D"><enum>(iii)</enum><text display-inline="yes-display-inline">1.0 percent for year 3 of the Agreement;
and</text>
</clause><clause commented="no" id="HBA0DD617E47342859C355AF53E46D429"><enum>(iv)</enum><text display-inline="yes-display-inline">0.5 percent for year 4 of the Agreement;
and</text>
</clause></subparagraph><subparagraph commented="no" id="HB350AD3B30AB429EB1A2A75394227D40"><enum>(B)</enum><text display-inline="yes-display-inline">such goods shall be free of duty for each
year thereafter.</text>
</subparagraph></paragraph><paragraph commented="no" id="H51A8FCA3B9674D77AAC38E2BED1FBE3D"><enum>(3)</enum><header>Certain
trucks</header><text>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—</text>
<subparagraph commented="no" id="HD94D402DDB4A482D8E7204B1E3313D4F"><enum>(A)</enum><text>the rate of duty
for such goods shall be—</text>
<clause commented="no" id="HBC45AA2C6BE243E4B05A391064892206"><enum>(i)</enum><text display-inline="yes-display-inline">25 percent for year 1 of the Agreement
through year 7 of the Agreement;</text>
</clause><clause commented="no" id="id212D156B0F7942ADA8E3CD8E525C628A"><enum>(ii)</enum><text display-inline="yes-display-inline">16.6 percent for year 8 of the Agreement;
and</text>
</clause><clause commented="no" id="HCB2C591C74F44EF69D0CF964B6851906"><enum>(iii)</enum><text display-inline="yes-display-inline">8.3 percent for year 9 of the Agreement;
and</text>
</clause></subparagraph><subparagraph commented="no" id="HCB850B91A0664DCB8C51F8020A8AAEDE"><enum>(B)</enum><text>such goods shall
be free of duty for each year thereafter.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE50114DAA25E4A6A95441E2DEC99602B"><enum>(4)</enum><header>Definitions</header><text>In
this subsection—</text>
<subparagraph commented="no" id="H81BD559D49B8442E8CFC8BC72484C1DD"><enum>(A)</enum><text>the term
<quote>year 1 of the Agreement</quote> 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</text>
</subparagraph><subparagraph commented="no" id="H8AD2ECF11D9047D498CA3F64BCB856C4"><enum>(B)</enum><text display-inline="yes-display-inline">the terms <quote>year 2 of the
Agreement</quote>, <quote>year 3 of the Agreement</quote>, <quote>year 4 of the
Agreement</quote>, <quote>year 5 of the Agreement</quote>, <quote>year 6 of the
Agreement</quote>, <quote>year 7 of the Agreement</quote>, <quote>year 8 of the
Agreement</quote>, and <quote>year 9 of the Agreement</quote> mean the second,
third, fourth, fifth, sixth, seventh, eighth, and ninth calendar years,
respectively, in which the Agreement is in force.</text>
</subparagraph></paragraph></subsection></section><section id="ID79c7d57fde844e54a7f65a7eb10ed92e"><enum>202.</enum><header>Rules of
origin</header>
<subsection id="ID77b75749fc4c4583862faaafb702beb2"><enum>(a)</enum><header>Application and
interpretation</header><text>In this section:</text>
<paragraph id="IDa4625177ba954c62ac4452e62e2a8fa4"><enum>(1)</enum><header>Tariff
classification</header><text>The basis for any tariff classification is the
HTS.</text>
</paragraph><paragraph id="ID323ff4a8d95c41bdb74d5de8d82e8a71"><enum>(2)</enum><header>Reference to
HTS</header><text>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.</text>
</paragraph><paragraph id="IDf4b1005bbc7c4ca397cd24791f0de660"><enum>(3)</enum><header>Cost or
value</header><text>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).</text>
</paragraph></subsection><subsection id="ID273e6cabe0b743a08f3e7865f3184ddf"><enum>(b)</enum><header>Originating
goods</header><text>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—</text>
<paragraph id="ID0c23783ae1754f4ebe0db52b4675e57d"><enum>(1)</enum><text>the good is a
good wholly obtained or produced entirely in the territory of Korea, the United
States, or both;</text>
</paragraph><paragraph id="ID1f5909794df74e878dd8858e4f53fd32"><enum>(2)</enum><text>the good—</text>
<subparagraph id="IDa5fbd074b43c46e2a1a6f2f0cb6d2ecf"><enum>(A)</enum><text>is produced
entirely in the territory of Korea, the United States, or both, and—</text>
<clause id="ID5761d3165f7547f6a68d824f6a619ce4"><enum>(i)</enum><text>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</text>
</clause><clause id="ID7749bb25d2584d9dab93aca9d4e5bb4f"><enum>(ii)</enum><text>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</text>
</clause></subparagraph><subparagraph id="ID84e850d67cb941f2baf7e03970ec009e"><enum>(B)</enum><text>satisfies all
other applicable requirements of this section; or</text>
</subparagraph></paragraph><paragraph id="ID2d822e5ee58944d4a36f25b0e5e26961"><enum>(3)</enum><text>the good is
produced entirely in the territory of Korea, the United States, or both,
exclusively from materials described in paragraph (1) or (2).</text>
</paragraph></subsection><subsection id="ID6ae0b2d002a348e6b592682e9131e2ff"><enum>(c)</enum><header>Regional
value-content</header>
<paragraph id="IDdc710f649d1345e486b65ce13658c893"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph id="IDedd3a0d356c24b2e98380e54eee47c7d"><enum>(2)</enum><header>Build-down
method</header>
<subparagraph id="ID7d8676e2c3334b52880511399c17f3da"><enum>(A)</enum><header>In
general</header><text>The regional value-content of a good may be calculated on
the basis of the following build-down method:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Formula 6" table-type="exception-quote">
<tgroup actual-width="1" cols="3" grid-typeface="1.1" offset-from-left="112" rowsep="0" thead-tbody-ldg-size="10.10.7"><colspec align="right" coldef="txt-no-ldr-no-spread" colname="column1" colwidth="50pts" min-data-value="50"></colspec><colspec align="center" coldef="txt-no-ldr-no-spread" colname="column2" colwidth="50pts" min-data-value="50"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column3" colwidth="50pts" min-data-value="50"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr">AV−VNM</entry><entry align="left" colname="column3" leader-modify="clr-ldr"></entry>
</row>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">RVC =</entry><entry align="left" colname="column2" leader-modify="clr-ldr">—————</entry><entry align="left" colname="column3" leader-modify="clr-ldr">× 100.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr">AV</entry><entry align="left" colname="column3" leader-modify="clr-ldr"></entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph><subparagraph id="idBD253CB3AB594098BB22F9BA00C8858C"><enum>(B)</enum><header>Definitions</header><text>In
subparagraph (A):</text>
<clause id="ID5470b881659e4666938459b5569733f9"><enum>(i)</enum><header>RVC</header><text>The
term <term>RVC</term> means the regional value-content of the good, expressed
as a percentage.</text>
</clause><clause id="ID0b380d98f39941919260ac97a0d7c97c"><enum>(ii)</enum><header>AV</header><text>The
term <term>AV</term> means the adjusted value of the good.</text>
</clause><clause id="IDa55a75a712e14125a57c7ca33081d2ef"><enum>(iii)</enum><header>VNM</header><text>The
term <term>VNM</term> 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.</text>
</clause></subparagraph></paragraph><paragraph id="IDe3b91a7d766a483784da8b67e280cae3"><enum>(3)</enum><header>Build-up
method</header>
<subparagraph id="ID9ea45cf2201a4318ba756713a0633dfb"><enum>(A)</enum><header>In
general</header><text>The regional value-content of a good may be calculated on
the basis of the following build-up method:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Formula 6" table-type="exception-quote">
<tgroup actual-width="1" cols="3" grid-typeface="1.1" offset-from-left="112" rowsep="0" thead-tbody-ldg-size="10.10.7"><colspec align="right" coldef="txt-no-ldr-no-spread" colname="column1" colwidth="50pts" min-data-value="50"></colspec><colspec align="center" coldef="txt-no-ldr-no-spread" colname="column2" colwidth="50pts" min-data-value="50"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column3" colwidth="50pts" min-data-value="50"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr">VOM</entry><entry align="left" colname="column3" leader-modify="clr-ldr"></entry>
</row>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">RVC =</entry><entry align="left" colname="column2" leader-modify="clr-ldr">—————</entry><entry align="left" colname="column3" leader-modify="clr-ldr">× 100.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr">AV</entry><entry align="left" colname="column3" leader-modify="clr-ldr"></entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph><subparagraph id="ID7cbcda73071d4cccb57ec32fc7381401"><enum>(B)</enum><header>Definitions</header><text>In
subparagraph (A):</text>
<clause id="ID42ef0df7ba2a47aba5191139c8dd5ce7"><enum>(i)</enum><header>RVC</header><text>The
term <term>RVC</term> means the regional value-content of the good, expressed
as a percentage.</text>
</clause><clause id="IDb96edc6ef7ee43998009b48e3e835a83"><enum>(ii)</enum><header>AV</header><text>The
term <term>AV</term> means the adjusted value of the good.</text>
</clause><clause id="ID5f6f267ff1f7480d94a66904e48fcd44"><enum>(iii)</enum><header>VOM</header><text>The
term <term>VOM</term> 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.</text>
</clause></subparagraph></paragraph><paragraph id="IDa3baff0a01544e268491754a2088478c"><enum>(4)</enum><header>Special rule
for certain automotive goods</header>
<subparagraph id="ID9d85125898de43028684febff3826c00"><enum>(A)</enum><header>In
general</header><text>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:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Formula 6" table-type="exception-quote">
<tgroup actual-width="1" cols="3" grid-typeface="1.1" offset-from-left="112" rowsep="0" thead-tbody-ldg-size="10.10.7"><colspec align="right" coldef="txt-no-ldr-no-spread" colname="column1" colwidth="50pts" min-data-value="50"></colspec><colspec align="center" coldef="txt-no-ldr-no-spread" colname="column2" colwidth="50pts" min-data-value="50"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column3" colwidth="50pts" min-data-value="50"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr">NC−VNM</entry><entry align="left" colname="column3" leader-modify="clr-ldr"></entry>
</row>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1">RVC =</entry><entry align="left" colname="column2" leader-modify="clr-ldr">—————</entry><entry align="left" colname="column3" leader-modify="clr-ldr">× 100.</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" stub-definition="txt-ldr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr">NC</entry><entry align="left" colname="column3" leader-modify="clr-ldr"></entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph><subparagraph id="idE4FEF9BC1AB44C7BAC2F6FC8F3BDF607"><enum>(B)</enum><header>Definitions</header><text>In
subparagraph (A):</text>
<clause id="ID439f9ae7b4774ba59bc51572bd8a229f"><enum>(i)</enum><header>Automotive
good</header><text>The term <term>automotive good</term> 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.</text>
</clause><clause id="IDdc5af9a90c024a72ad3ec2d4c1b0b8e9"><enum>(ii)</enum><header>RVC</header><text>The
term <term>RVC</term> means the regional value-content of the automotive good,
expressed as a percentage.</text>
</clause><clause id="ID913469ae65b14f27bf79b84cf3e7baef"><enum>(iii)</enum><header>NC</header><text>The
term <term>NC</term> means the net cost of the automotive good.</text>
</clause><clause id="ID663baf9ddd744999bd30978ab619e89e"><enum>(iv)</enum><header>VNM</header><text>The
term <term>VNM</term> 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.</text>
</clause></subparagraph><subparagraph id="ID0197ba3cd459496eb0394c19912293f0"><enum>(C)</enum><header>Motor
vehicles</header>
<clause id="ID50cc05eeb99d4a67a975ff7526443f94"><enum>(i)</enum><header>Basis of
calculation</header><text>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—</text>
<subclause id="ID1f5388bb8056414cb3ab093a3af79c4e"><enum>(I)</enum><text>with respect to
all motor vehicles in any one of the categories described in clause (ii);
or</text>
</subclause><subclause id="ID219f95c676ce44709ce70e8df86aba18"><enum>(II)</enum><text>with respect to
all motor vehicles in any such category that are exported to the territory of
Korea or the United States.</text>
</subclause></clause><clause id="ID8d85395bdbff49349c90c439044e52f7"><enum>(ii)</enum><header>Categories</header><text>A
category is described in this clause if it—</text>
<subclause id="ID26b97c52cbe24446af847f5cc37f585a"><enum>(I)</enum><text>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;</text>
</subclause><subclause id="ID9f036d9c24094a66b47c705a1dcf5f60"><enum>(II)</enum><text>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</text>
</subclause><subclause id="ID254a10254bb144c78fd1055c5a7fd305"><enum>(III)</enum><text>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.</text>
</subclause></clause></subparagraph><subparagraph id="ID0bcf2170e8764cd1936ad11dda635355"><enum>(D)</enum><header>Other
automotive goods</header><text>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—</text>
<clause id="ID0914cb8bb4474c938a45215beeb60325"><enum>(i)</enum><text>average the
amounts calculated under the net cost formula contained in subparagraph (A)
over—</text>
<subclause id="ID10c00b5607a64164b1bdb7ccb3113f29"><enum>(I)</enum><text>the fiscal year
of the motor vehicle producer to whom the automotive goods are sold,</text>
</subclause><subclause id="ID636a83b8c007456f9c349b32fba45a98"><enum>(II)</enum><text>any quarter or
month, or</text>
</subclause><subclause id="ID397646054b3e44d2a9855587c00e6ae0"><enum>(III)</enum><text>the fiscal year
of the producer of such goods,</text>
</subclause><continuation-text continuation-text-level="clause">if the goods
were produced during the fiscal year, quarter, or month that is the basis for
the calculation;</continuation-text></clause><clause id="IDe6404dded5574b9b945159acb04c877a"><enum>(ii)</enum><text>determine the
average referred to in clause (i) separately for such goods sold to 1 or more
motor vehicle producers; or</text>
</clause><clause id="IDd3a436cd8b3c4b358c643a38f3582fe6"><enum>(iii)</enum><text>make a separate
determination under clause (i) or (ii) for such goods that are exported to the
territory of Korea or the United States.</text>
</clause></subparagraph><subparagraph id="IDc949a2937bba4217967a7a71f25d8bf7"><enum>(E)</enum><header>Calculating net
cost</header><text>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—</text>
<clause id="IDb7e64951b687415a8377cf04e62a5612"><enum>(i)</enum><text>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;</text>
</clause><clause id="IDac73939cc56d41829153ca015d6d319a"><enum>(ii)</enum><text>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</text>
</clause><clause id="ID3d0cc03d2377441fbb980254fd2654ad"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDd57a3aae959141caaeaf0356a60b3f26"><enum>(d)</enum><header>Value of
materials</header>
<paragraph id="ID58df04543ddc4f94ad88b1a365f72376"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="ID045c3469d6664bf4851a7fd7a6a4605e"><enum>(A)</enum><text>in the case of a
material that is imported by the producer of the good, the adjusted value of
the material;</text>
</subparagraph><subparagraph id="IDd913e6da7ada4dad8c12015deb0fb9a7"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="IDef21c4f6ec9b4614919d8fa1e20c763b"><enum>(C)</enum><text>in the case of a
material that is self-produced, the sum of—</text>
<clause id="ID59e63c2754504c70a0b9a4bf2f77c1db"><enum>(i)</enum><text>all
expenses incurred in the production of the material, including general
expenses; and</text>
</clause><clause id="ID7ac3bef4791d43cbaf7f9cab0345be09"><enum>(ii)</enum><text>an
amount for profit equivalent to the profit added in the normal course of
trade.</text>
</clause></subparagraph></paragraph><paragraph id="ID1b9e3a9f869a47e4a6acbbe5a389e218"><enum>(2)</enum><header>Further
adjustments to the value of materials</header>
<subparagraph id="IDe65fe32698214ccd9ca9e165a68c2016"><enum>(A)</enum><header>Originating
material</header><text>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:</text>
<clause id="IDbb20722911ef4a3dad0fb17e368baad2"><enum>(i)</enum><text>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.</text>
</clause><clause id="ID45e15a6716ea488f89a2c6669431a145"><enum>(ii)</enum><text>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.</text>
</clause><clause id="ID4adc2f9ec3e8470d9c436f85d32d61d9"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="ID7885e587caf04cd184a97eae6aad5385"><enum>(B)</enum><header>Nonoriginating
material</header><text>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:</text>
<clause id="ID8c482d50e3084edf91ec822b2cfb1c9d"><enum>(i)</enum><text>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.</text>
</clause><clause id="IDa31845f9d4894078882ee545a9ccf3e9"><enum>(ii)</enum><text>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.</text>
</clause><clause id="ID825d5560036746c193cff2875a3e015e"><enum>(iii)</enum><text>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.</text>
</clause><clause id="IDd058d23f90a64ac6a563d6a0ac75ffdc"><enum>(iv)</enum><text>The cost of
originating materials used in the production of the nonoriginating material in
the territory of Korea, the United States, or both.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID6463b84879f741b2b335abbe39f36416"><enum>(e)</enum><header>Accumulation</header>
<paragraph id="ID85965e1627f14910bc3e8df094677999"><enum>(1)</enum><header>Originating
materials used in production of goods of the other
country</header><text>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.</text>
</paragraph><paragraph id="IDd65a836ca590438eb40a92df085cc3ea"><enum>(2)</enum><header>Multiple
producers</header><text>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.</text>
</paragraph></subsection><subsection id="ID896f5b653639430d916b54fda0a6c369"><enum>(f)</enum><header>De minimis
amounts of nonoriginating materials</header>
<paragraph id="ID2e601b10b6d54f55bc60251e9f78ec36"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="IDd9ee35adff894ac38da49e6bed97cdcc"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="ID79f5c6cf43a3446786d17d366c97c804"><enum>(B)</enum><text>the good meets
all other applicable requirements of this section; and</text>
</subparagraph><subparagraph id="ID8d5ce3ced45641b09fc2c789ffcf736c"><enum>(C)</enum><text>the value of such
nonoriginating materials is included in the value of nonoriginating materials
for any applicable regional value-content requirement for the good.</text>
</subparagraph></paragraph><paragraph id="IDa9046414f57d40d4bea4da1edc3ac7a4"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) does not apply to the following:</text>
<subparagraph id="ID09abe92b6e044aacbc28926af2f45789"><enum>(A)</enum><text>A nonoriginating
material provided for in chapter 3 that is used in the production of a good
provided for in chapter 3.</text>
</subparagraph><subparagraph id="ID220124ffff4f48eb91f31393ff86ba97"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph id="ID58a0a3ae121248bfb0eea6f316f4e12a"><enum>(C)</enum><text>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:</text>
<clause id="IDed9e52e14ced4dfd9b3e56faf935321d"><enum>(i)</enum><text>Infant
preparations containing over 10 percent by weight of milk solids provided for
in subheading 1901.10.</text>
</clause><clause id="IDb38a2966a1524bf7be93daea4ef91658"><enum>(ii)</enum><text>Mixes and
doughs, containing over 25 percent by weight of butterfat, not put up for
retail sale, provided for in subheading 1901.20.</text>
</clause><clause id="ID93d885579c884aa293986a6e067cd3e4"><enum>(iii)</enum><text>Dairy
preparations containing over 10 percent by weight of milk solids provided for
in subheading 1901.90 or 2106.90.</text>
</clause><clause id="IDaf93eb02a5324fed82e36f83de74485b"><enum>(iv)</enum><text>Goods provided
for in heading 2105.</text>
</clause><clause id="IDbaa02c6b51584534ad49d7df07cc7f57"><enum>(v)</enum><text>Beverages
containing milk provided for in subheading 2202.90.</text>
</clause><clause id="ID1bd02d70acd643d892809d35954ecbd8"><enum>(vi)</enum><text>Animal feeds
containing over 10 percent by weight of milk solids provided for in subheading
2309.90.</text>
</clause></subparagraph><subparagraph id="ID411cce150a7e45aead28c4ceadb7216c"><enum>(D)</enum><text>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.</text>
</subparagraph><subparagraph id="IDe5f1f4b5a5114f44bc09d7b3cf4bf5b1"><enum>(E)</enum><text>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.</text>
</subparagraph><subparagraph id="IDd6f3df55a35e4f4880a79cfb3df63ca8"><enum>(F)</enum><text>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.</text>
</subparagraph><subparagraph id="ID42d1340985644aa38aa0664d867c71a8"><enum>(G)</enum><text>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.</text>
</subparagraph><subparagraph id="IDf2bd73dd8a97451c82de1f1e5257a0b9"><enum>(H)</enum><text>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.</text>
</subparagraph><subparagraph id="IDf696634a5d564c58ad469176091b8dbb"><enum>(I)</enum><text>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.</text>
</subparagraph><subparagraph id="ID42e4c564ea014884912bd6b65f3961d4"><enum>(J)</enum><text>A nonoriginating
material provided for in chapter 17 that is used in the production of a good
provided for in subheading 1806.10.</text>
</subparagraph><subparagraph id="IDbc2c41e3058b4f2dbeeb490e46e41201"><enum>(K)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="ID6cef008eef994311957eaff06285c518"><enum>(3)</enum><header>Textile or
apparel goods</header>
<subparagraph id="ID41f39bda2d014a6a8be1caf56438d599"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="IDda602e8aa3de45718dd6101be9e05c70"><enum>(B)</enum><header>Certain textile
or apparel goods</header><text>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.</text>
</subparagraph><subparagraph id="IDc129a6b665c44083a1a077ded7c1cbb5"><enum>(C)</enum><header>Yarn, fabric,
or fiber</header><text>For purposes of this paragraph, in the case of a good
that is a yarn, fabric, or fiber, the term <quote>component of the good that
determines the tariff classification of the good</quote> means all of the
fibers in the good.</text>
</subparagraph></paragraph></subsection><subsection id="ID8ef2cc5453e64c779181e6163d39ad9b"><enum>(g)</enum><header>Fungible goods
and materials</header>
<paragraph id="IDb2a949f1ffe54edea1d5fbf8f1cfbb95"><enum>(1)</enum><header>In
general</header>
<subparagraph id="IDbebb848d412644e8843af650e908c112"><enum>(A)</enum><header>Claim for
preferential tariff treatment</header><text>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.</text>
</subparagraph><subparagraph id="ID589de4520c374050a7caa0507f6981d2"><enum>(B)</enum><header>Inventory
management method</header><text>In this subsection, the term <term>inventory
management method</term> means—</text>
<clause id="ID1988fdb13b1f435eb3da2b30817bd260"><enum>(i)</enum><text>averaging;</text>
</clause><clause id="ID93bd8c7c64844a548b47348a3e01a51a"><enum>(ii)</enum><text><quote>last-in,
first-out</quote>;</text>
</clause><clause id="IDc3ccbe60a35c45ff9e607e80385fd07c"><enum>(iii)</enum><text><quote>first-in,
first-out</quote>; or</text>
</clause><clause id="IDc66cec3707cc4d93b6e9d7c41ab6702d"><enum>(iv)</enum><text>any other
method—</text>
<subclause id="ID5490b8ffa1a44bdc9ffedd9643f30630"><enum>(I)</enum><text>recognized in the
generally accepted accounting principles of the country in which the production
is performed (whether Korea or the United States); or</text>
</subclause><subclause id="ID404365974e9e43d4b06339d288259beb"><enum>(II)</enum><text>otherwise
accepted by that country.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID1d3eee55ee24489cbb0929e17f0c847f"><enum>(2)</enum><header>Election of
inventory method</header><text>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.</text>
</paragraph></subsection><subsection id="ID45a381d0cb744da9a699c3e72501ba61"><enum>(h)</enum><header>Accessories,
spare parts, or tools</header>
<paragraph id="ID1a0ef0ad080245bc997fa59399754055"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="ID30c9d90d14e24a7298c873d9f45594ae"><enum>(A)</enum><text>be treated as
originating goods if the good is an originating good; and</text>
</subparagraph><subparagraph id="ID7ee6a732ae66415b885f0516c51b7071"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="IDaf17369e389148e398ba6dfab1af4abc"><enum>(2)</enum><header>Conditions</header><text>Paragraph
(1) shall apply only if—</text>
<subparagraph id="IDc3c54943088d4d828c819317a5d24657"><enum>(A)</enum><text>the accessories,
spare parts, or tools are classified with and not invoiced separately from the
good; and</text>
</subparagraph><subparagraph id="ID36705057dad44a40ba28b664de4c0e63"><enum>(B)</enum><text>the quantities
and value of the accessories, spare parts, or tools are customary for the
good.</text>
</subparagraph></paragraph><paragraph id="ID2f04875fdea34fd8a7247d42bcc66acc"><enum>(3)</enum><header>Regional value
content</header><text>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.</text>
</paragraph></subsection><subsection id="ID80e0387fe5874d28a95808b47a98656f"><enum>(i)</enum><header>Packaging
materials and containers for retail sale</header><text>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.</text>
</subsection><subsection id="IDbb1eb532f63f49bf8177c1926e8d0bda"><enum>(j)</enum><header>Packing
materials and containers for shipment</header><text>Packing materials and
containers for shipment shall be disregarded in determining whether a good is
an originating good.</text>
</subsection><subsection id="ID06cdf2c7c3764f8a845c9fecac4ca5a2"><enum>(k)</enum><header>Indirect
materials</header><text>An indirect material shall be disregarded in
determining whether a good is an originating good.</text>
</subsection><subsection id="IDce10ef2cedc444ad96d1962dc2d97816"><enum>(l)</enum><header>Transit and
transhipment</header><text>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—</text>
<paragraph id="IDb9a68cea56e5466bb6d77a17cbcb294d"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="ID96e9b8dab065415e947503cc71ea2843"><enum>(2)</enum><text>does not remain
under the control of customs authorities in the territory of a country other
than Korea or the United States.</text>
</paragraph></subsection><subsection id="ID05f6a338b7fd4a08a65b03afd40f0207"><enum>(m)</enum><header>Goods
classifiable as goods put up in sets</header><text>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—</text>
<paragraph id="ID6311a98a721a4ef082ccc3e56ddef674"><enum>(1)</enum><text>each of the goods
in the set is an originating good; or</text>
</paragraph><paragraph id="IDb966d10dbdef47c0a7212015eb883d92"><enum>(2)</enum><text>the total value
of the nonoriginating goods in the set does not exceed—</text>
<subparagraph id="ID1d61b46f7dd24073a7ad6d069b0b748c"><enum>(A)</enum><text>in the case of
textile or apparel goods, 10 percent of the adjusted value of the set;
or</text>
</subparagraph><subparagraph id="IDe369e1d0b46b4a5b9fbf4c3d4892384c"><enum>(B)</enum><text>in the case of
goods, other than textile or apparel goods, 15 percent of the adjusted value of
the set.</text>
</subparagraph></paragraph></subsection><subsection id="IDb28bb998323e4e5f93b7eeecffb91466"><enum>(n)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="ID7a9720352ccc467395ed1d25d2c62beb"><enum>(1)</enum><header>Adjusted
value</header><text>The term <term>adjusted value</term> 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.</text>
</paragraph><paragraph id="ID0c4f7ddc90a648399029656b40739a71"><enum>(2)</enum><header>Class of motor
vehicles</header><text>The term <term>class of motor vehicles</term> means any
one of the following categories of motor vehicles:</text>
<subparagraph id="ID246342317d664f6b9ae3cfa3031b3b53"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="ID889553e588c14fe7a3d0a1ca8d3a29f8"><enum>(B)</enum><text>Motor vehicles
provided for in subheading 8701.10 or any of subheadings 8701.30 through
8701.90.</text>
</subparagraph><subparagraph id="ID6f4c1fda6c1e449ab20de28abece9092"><enum>(C)</enum><text>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.</text>
</subparagraph><subparagraph id="ID1ec782e13e38448dbd7be5fdd74855c9"><enum>(D)</enum><text>Motor vehicles
provided for in any of subheadings 8703.21 through 8703.90.</text>
</subparagraph></paragraph><paragraph id="ID8b917565dfb14daa8bc3f1c063201268"><enum>(3)</enum><header>Fungible good
or fungible material</header><text>The term <term>fungible good</term> or
<term>fungible material</term> 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.</text>
</paragraph><paragraph id="ID554e4a763e11487ea25b68e6d8f0fce4"><enum>(4)</enum><header>Generally
accepted accounting principles</header><text>The term <term>generally accepted
accounting principles</term>—</text>
<subparagraph id="id8F34CA91C1254762BCA10B45209A02B7"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="idDEB89E8BF2D44407BFE71A71F814A39D"><enum>(B)</enum><text>may encompass
broad guidelines for general application as well as detailed standards,
practices, and procedures.</text>
</subparagraph></paragraph><paragraph id="IDae9a965076fd45abb570f6945b249878"><enum>(5)</enum><header>Good wholly
obtained or produced entirely in the territory of Korea, the United States, or
both</header><text>The term <term>good wholly obtained or produced entirely in
the territory of Korea, the United States, or both</term> means any of the
following:</text>
<subparagraph id="ID9a836df803d24cb6a7dbf7c5db685e0d"><enum>(A)</enum><text>Plants and plant
products grown, and harvested or gathered, in the territory of Korea, the
United States, or both.</text>
</subparagraph><subparagraph id="ID1a2480ae85764c50b9351628ea34bbb8"><enum>(B)</enum><text>Live animals born
and raised in the territory of Korea, the United States, or both.</text>
</subparagraph><subparagraph id="ID5268ff30f99846609a3f7f92650e2e3f"><enum>(C)</enum><text>Goods obtained in
the territory of Korea, the United States, or both from live animals.</text>
</subparagraph><subparagraph id="ID17dba6164f094055838f1fac98ed4e44"><enum>(D)</enum><text>Goods obtained
from hunting, trapping, fishing, or aquaculture conducted in the territory of
Korea, the United States, or both.</text>
</subparagraph><subparagraph id="ID3a5d9db10e304813b045c85c6899fdea"><enum>(E)</enum><text>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.</text>
</subparagraph><subparagraph id="ID0fb2f6e4c18b4d2790e3da1174aa6931"><enum>(F)</enum><text>Fish, shellfish,
and other marine life taken from the sea, seabed, or subsoil outside the
territory of Korea or the United States by—</text>
<clause id="ID3babbada47aa484b85a35271cd44a068"><enum>(i)</enum><text>a
vessel that is registered or recorded with Korea and flying the flag of Korea;
or</text>
</clause><clause id="ID3b15dc8433df40f9a2ed8705d18b12b2"><enum>(ii)</enum><text>a
vessel that is documented under the laws of the United States.</text>
</clause></subparagraph><subparagraph id="IDfd7fe507d6224004a5c8c10b5961b219"><enum>(G)</enum><text>Goods produced on
board a factory ship from goods referred to in subparagraph (F), if such
factory ship—</text>
<clause id="ID20e980040a9e44babfe2127529ee3361"><enum>(i)</enum><text>is
registered or recorded with Korea and flies the flag of Korea; or</text>
</clause><clause id="ID81f40ea4f7f14babbacb8fba15a1ddd8"><enum>(ii)</enum><text>is
a vessel that is documented under the laws of the United States.</text>
</clause></subparagraph><subparagraph id="ID71605fbb65444a93a9635247c259d5de"><enum>(H)</enum><clause commented="no" display-inline="yes-display-inline" id="idCC6FEC675ABD405A982BB7D1855BDA26"><enum>(i)</enum><text>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</text>
</clause><clause id="id682A48CE5A894FD38298F467C63C96CD" indent="up1"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="ID755bed15c54a4bb2a5f3c22561176c63"><enum>(I)</enum><text>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.</text>
</subparagraph><subparagraph id="ID4c91f124fe6a47eeb737c98023f417cc"><enum>(J)</enum><text>Waste and scrap
derived from—</text>
<clause id="ID51d5293e60a9417f906cfae8563a8e4d"><enum>(i)</enum><text>manufacturing or
processing operations in the territory of Korea, the United States, or both;
or</text>
</clause><clause id="IDf12ecdda2f5f40b9a40a9e002fdccc45"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="IDa26dbef345b84d16bfba9944328070b8"><enum>(K)</enum><text>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.</text>
</subparagraph><subparagraph id="IDcbf78852e3794fb7b8b9ac28fedaab37"><enum>(L)</enum><text>Goods, at any
stage of production, produced in the territory of Korea, the United States, or
both, exclusively from—</text>
<clause id="ID3c3dca8a56754df98dd79882f3233b29"><enum>(i)</enum><text>goods referred to
in any of subparagraphs (A) through (J); or</text>
</clause><clause id="ID906ae562da2a4ed0af9335328c56c20f"><enum>(ii)</enum><text>the derivatives
of goods referred to in clause (i).</text>
</clause></subparagraph></paragraph><paragraph id="ID85c3636f13a14f4c9a28a65dbe2872bf"><enum>(6)</enum><header>Identical
goods</header><text>The term <term>identical goods</term> means goods that are
the same in all respects relevant to the rule of origin that qualifies the
goods as originating goods.</text>
</paragraph><paragraph id="ID9ae41fa84cfa49bebed56455db4f12f0"><enum>(7)</enum><header>Indirect
material</header><text>The term <term>indirect material</term> 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—</text>
<subparagraph id="ID69bfda94210e41018c00a3c66ff11323"><enum>(A)</enum><text>fuel and
energy;</text>
</subparagraph><subparagraph id="IDc25d9e85be5a47cfadb92b6ad7d0f0f1"><enum>(B)</enum><text>tools, dies, and
molds;</text>
</subparagraph><subparagraph id="IDf26c0eda89434cb3a9c8ae1804a91bb6"><enum>(C)</enum><text>spare parts and
materials used in the maintenance of equipment or buildings;</text>
</subparagraph><subparagraph id="ID583c675b0e0b49c1a8c741836cec26e0"><enum>(D)</enum><text>lubricants,
greases, compounding materials, and other materials used in production or used
to operate equipment or buildings;</text>
</subparagraph><subparagraph id="IDd087c75015e74076b1d0add25c751262"><enum>(E)</enum><text>gloves, glasses,
footwear, clothing, safety equipment, and supplies;</text>
</subparagraph><subparagraph id="IDfbcbdf493367493b916232202e95cfc4"><enum>(F)</enum><text>equipment,
devices, and supplies used for testing or inspecting the good;</text>
</subparagraph><subparagraph id="ID913a19c5286844aa919822bcf8b51bf8"><enum>(G)</enum><text>catalysts and
solvents; and</text>
</subparagraph><subparagraph id="ID25450da2489c48748dba220030ac9c42"><enum>(H)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="ID1a7968cc8dfb4431be745d7c0f210fa1"><enum>(8)</enum><header>Material</header><text>The
term <term>material</term> means a good that is used in the production of
another good, including a part or an ingredient.</text>
</paragraph><paragraph id="ID4bb5ac08f2b040ffac64a6b26ca4c379"><enum>(9)</enum><header>Material that
is self-produced</header><text>The term <term>material that is
self-produced</term> means an originating material that is produced by a
producer of a good and used in the production of that good.</text>
</paragraph><paragraph id="ID9ff339c55fee4ea48ade7cb6d9d2e76b"><enum>(10)</enum><header>Model line of
motor vehicles</header><text>The term <term>model line of motor vehicles</term>
means a group of motor vehicles having the same platform or model name.</text>
</paragraph><paragraph id="ID1c93507f38064112990da05dd46a8f0d"><enum>(11)</enum><header>Net
cost</header><text>The term <term>net cost</term> 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.</text>
</paragraph><paragraph id="ID84e6e725b30647e18fbb00be4054ee1c"><enum>(12)</enum><header>Nonallowable
interest costs</header><text>The term <term>nonallowable interest costs</term>
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.</text>
</paragraph><paragraph id="IDf54f1aa5353a4af9b1dcbd5df662b9b7"><enum>(13)</enum><header>Nonoriginating
good or nonoriginating material</header><text>The term <term>nonoriginating
good</term> or <term>nonoriginating material</term> means a good or material,
as the case may be, that does not qualify as originating under this
section.</text>
</paragraph><paragraph id="IDcc252f65ffed49c79762cd61d13e0d66"><enum>(14)</enum><header>Packing
materials and containers for shipment</header><text>The term <term>packing
materials and containers for shipment</term> 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.</text>
</paragraph><paragraph id="ID009c7806cb834084b76aa95aa117aed8"><enum>(15)</enum><header>Preferential
tariff treatment</header><text>The term <term>preferential tariff
treatment</term> 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.</text>
</paragraph><paragraph id="IDe5851a4533444126a58d5cd5e3add68a"><enum>(16)</enum><header>Producer</header><text>The
term <term>producer</term> means a person who engages in the production of a
good in the territory of Korea or the United States.</text>
</paragraph><paragraph id="ID69e8ff5df835445282d00306fa588371"><enum>(17)</enum><header>Production</header><text>The
term <term>production</term> means growing, mining, harvesting, fishing,
breeding, raising, trapping, hunting, manufacturing, processing, assembling, or
disassembling a good.</text>
</paragraph><paragraph id="ID59df2d68d32f44d99cb04805f9101319"><enum>(18)</enum><header>Reasonably
allocate</header><text>The term <term>reasonably allocate</term> means to
apportion in a manner that would be appropriate under generally accepted
accounting principles.</text>
</paragraph><paragraph id="IDd2da55cc83844035827df6079757a907"><enum>(19)</enum><header>Recovered
goods</header><text>The term <term>recovered goods</term> means materials in
the form of individual parts that are the result of—</text>
<subparagraph id="ID2d30fe4fe0634505b94ef7d7b00bd8a2"><enum>(A)</enum><text>the disassembly
of used goods into individual parts; and</text>
</subparagraph><subparagraph id="ID089dde8540a4426eb19dd62a492b427a"><enum>(B)</enum><text>the cleaning,
inspecting, testing, or other processing that is necessary for improvement to
sound working condition of such individual parts.</text>
</subparagraph></paragraph><paragraph id="IDff438eab710742dea1aec8a6017236f8"><enum>(20)</enum><header>Remanufactured
good</header><text>The term <term>remanufactured good</term> means a good that
is classified under chapter 84, 85, 87, or 90 or heading 9402, and that—</text>
<subparagraph id="ID380d35eb7a6b40cfab95235a5ee4e90e"><enum>(A)</enum><text>is entirely or
partially comprised of recovered goods; and</text>
</subparagraph><subparagraph id="ID0c8dceb90bc04ba1b4db06b8e3cabd51"><enum>(B)</enum><text>has a similar
life expectancy and enjoys a factory warranty similar to such a good that is
new.</text>
</subparagraph></paragraph><paragraph id="IDeffe907cef274721bbcb366c0ea5ba13"><enum>(21)</enum><header>Total
cost</header>
<subparagraph id="ID7c8b4b3c0b7f447782581ebb5833f3c5"><enum>(A)</enum><header>In
general</header><text>The term <term>total cost</term>—</text>
<clause id="IDdfab034edd0e406985bea4c3ffb11898"><enum>(i)</enum><text>means all product
costs, period costs, and other costs for a good incurred in the territory of
Korea, the United States, or both; and</text>
</clause><clause id="ID8e2721e65084419c845d93ab12a8c137"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="ID71d0ff2c9fe2419393f401bc9b2a1048"><enum>(B)</enum><header>Other
definitions</header><text>In this paragraph:</text>
<clause id="ID39edb5c798304d5c828dd6a3ca65f494"><enum>(i)</enum><header>Product
costs</header><text>The term <term>product costs</term> means costs that are
associated with the production of a good and include the value of materials,
direct labor costs, and direct overhead.</text>
</clause><clause id="ID9108154bfd2a43acafa5e37cd5b6af15"><enum>(ii)</enum><header>Period
costs</header><text>The term <term>period costs</term> 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.</text>
</clause><clause id="ID8ec8e06aadb0411780acca3a92816aa4"><enum>(iii)</enum><header>Other
costs</header><text>The term <term>other costs</term> means all costs recorded
on the books of the producer that are not product costs or period costs, such
as interest.</text>
</clause></subparagraph></paragraph><paragraph id="ID6bbe14fd2a534fe695aafbd2a2e8889b"><enum>(22)</enum><header>Used</header><text>The
term <term>used</term> means utilized or consumed in the production of
goods.</text>
</paragraph></subsection><subsection id="ID1e5cfb09edf442a48ad6548569213e3b"><enum>(o)</enum><header>Presidential
proclamation authority</header>
<paragraph id="ID7d02d2b8469d482993fe116c3cda6317"><enum>(1)</enum><header>In
general</header><text>The President is authorized to proclaim, as part of the
HTS—</text>
<subparagraph id="ID8a5666ace09b450c9d13114063320fdd"><enum>(A)</enum><text>the provisions
set forth in Annex 4-A and Annex 6-A of the Agreement; and</text>
</subparagraph><subparagraph id="ID834f0d460250460a9f494d57f07c8390"><enum>(B)</enum><text>any additional
subordinate category that is necessary to carry out this title consistent with
the Agreement.</text>
</subparagraph></paragraph><paragraph id="IDc1012b910265415b83747de2ddc64613"><enum>(2)</enum><header>Modifications</header>
<subparagraph id="IDd7a51f456c354007872a6aca5ac1c8c8"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="ID9ec3f0120217416ab729ed3edd8bb754"><enum>(B)</enum><header>Additional
proclamations</header><text>Notwithstanding subparagraph (A), and subject to
the consultation and layover provisions of section 104, the President may
proclaim—</text>
<clause id="ID7fe3628ee5e448cabe8572a852289856"><enum>(i)</enum><text>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</text>
</clause><clause id="ID3c5a97e842074c49be5d489550dae6b1"><enum>(ii)</enum><text>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).</text>
</clause></subparagraph></paragraph><paragraph id="IDccadd174960f4335aad4ba1094ae5962"><enum>(3)</enum><header>Fibers, yarns,
or fabrics not available in commercial quantities in the united States</header>
<subparagraph id="ID56e2d9d7a4bf4e3c8cb2a223db88fa99"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="IDfeef3b380bee4faf9a51f5bb9bb3fc3d"><enum>(B)</enum><header>Definitions</header><text>In
this paragraph:</text>
<clause id="IDce367cb97c56419daf09cae9441ebb80"><enum>(i)</enum><header>Interested
entity</header><text>The term <term>interested entity</term> 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.</text>
</clause><clause id="ID45a9e4bff0bc45b98c8f8ef6df32970f"><enum>(ii)</enum><header>Day;
days</header><text>All references to <quote>day</quote> and <quote>days</quote>
exclude Saturdays, Sundays, and legal holidays observed by the Government of
the United States.</text>
</clause></subparagraph><subparagraph id="IDa95275e31ddc4e2193807bf8624eec2f"><enum>(C)</enum><header>Requests to add
fibers, yarns, or fabrics</header>
<clause id="idDEEA0128CFF04C9B98870ECB8B1B69D9"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="ID27214471985242338c11833003afb876"><enum>(ii)</enum><header>Determination</header><text>After
receiving a request under clause (i), the President may determine
whether—</text>
<subclause id="ID38bfd348d9e84d4db8ff871b43fa387c"><enum>(I)</enum><text>the fiber, yarn,
or fabric is available in commercial quantities in a timely manner in the
United States; or</text>
</subclause><subclause id="IDfe33c951de5e45dd903f7d30c24db671"><enum>(II)</enum><text>any interested
entity objects to the request.</text>
</subclause></clause><clause id="ID20066df385564f0182c5dada52357523"><enum>(iii)</enum><header>Proclamation
authority</header><text>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—</text>
<subclause id="ID9779c4e315754ab7a2b88569cbb3b8ae"><enum>(I)</enum><text>the fiber, yarn,
or fabric is not available in commercial quantities in a timely manner in the
United States; or</text>
</subclause><subclause id="ID025cee1893ac40fc922e33a6aa21eb0f"><enum>(II)</enum><text>no interested
entity has objected to the request.</text>
</subclause></clause><clause id="ID0b1feab027d54b38ad2a41d86bc8caa6"><enum>(iv)</enum><header>Time
periods</header><text>The time periods within which the President may issue a
proclamation under clause (iii) are—</text>
<subclause id="ID3b24bb8b988844cba6f98f67a5bbea7d"><enum>(I)</enum><text>not later than 30
days after the date on which a request is submitted under clause (i); or</text>
</subclause><subclause id="ID143908798edb4ec8af4d87f57e059d8b"><enum>(II)</enum><text>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).</text>
</subclause></clause><clause id="IDaf760f38898d4275bb00b4fe526ced95"><enum>(v)</enum><header>Effective
date</header><text>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.</text>
</clause></subparagraph><subparagraph id="IDe0d336dafc204e52b9d10204e1bee0b2"><enum>(D)</enum><header>Deemed denial
of request</header><text>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.</text>
</subparagraph><subparagraph id="IDaf1cb57d9c6b417385d4c502a6e0c37e"><enum>(E)</enum><header>Requests to
remove fibers, yarns, or fabrics</header>
<clause id="id227494EB6B3E4E1B90CA701F1BE65798"><enum>(i)</enum><header>In
general</header><text>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).</text>
</clause><clause id="IDf7ba22716c674241a1004f56ab89f1be"><enum>(ii)</enum><header>Proclamation
authority</header><text>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.</text>
</clause><clause id="ID28a314002ad54425958734b0155025a5"><enum>(iii)</enum><header>Effective
date</header><text>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.</text>
</clause></subparagraph><subparagraph id="ID71e33f5f757b4eef82fe3f0b9352af1f"><enum>(F)</enum><header>Procedures</header><text>The
President shall establish procedures—</text>
<clause id="ID48fed5f1b8964fa9953b46983abc7aef"><enum>(i)</enum><text>governing the
submission of a request under subparagraphs (C) and (E); and</text>
</clause><clause id="ID5e82ed3484b746dd8b4fac928ae7434a"><enum>(ii)</enum><text>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).</text>
</clause></subparagraph></paragraph></subsection></section><section id="IDc09c152956bb4e69a663cb003c34cbdf"><enum>203.</enum><header>Customs user
fees</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id7B91993C8B0647399ABC4D81C14BDB8C" style="OLC">
<paragraph id="IDffb2753534ef4086a287af564a9c77f3" indent="up1"><enum>(19)</enum><text>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 <short-title>United
States–Korea Free Trade Agreement Implementation Act</short-title>. 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.</text>
</paragraph><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="ID1adefb20f00a49daa5eb316104af6219"><enum>204.</enum><header>Disclosure of
incorrect information; false certifications of origin; denial of preferential
tariff treatment</header>
<subsection id="ID4556d79e825b449da865486d4d2d2b8c"><enum>(a)</enum><header>Disclosure of
incorrect information</header><text>Section 592 of the Tariff Act of 1930 (19
U.S.C. 1592) is amended—</text>
<paragraph id="ID0b79c89b2704427e933fca5369add903"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="IDdb59bf8a48304b36becdd6c1f689d0ca"><enum>(A)</enum><text>by redesignating
paragraph (11) as paragraph (12); and</text>
</subparagraph><subparagraph id="ID18bd2a1de00b40fab558729ec810681c"><enum>(B)</enum><text>by inserting
after paragraph (10) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id40F972344AED498D8C9E467DDAC5B958" style="OLC">
<paragraph id="IDa0060d8b0e6d4beb977bdf34a494590b"><enum>(11)</enum><header>Prior
disclosure regarding claims under the United States–Korea free trade
agreement</header><text>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 <short-title>United States–Korea Free Trade Agreement Implementation
Act</short-title> 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.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID068d7eb05c8b4cf8ad05e8168df0d94b"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idA7904D66701643DFA6C7FAF076F227EC" style="OLC">
<subsection id="ID724503069b454e3f8deffc0615c22d75"><enum>(j)</enum><header>False
certifications of origin under the United States–Korea free trade
agreement</header>
<paragraph id="IDfbaa76b8e6f143399620dcfd5c66521f"><enum>(1)</enum><header>In
general</header><text>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
<short-title>United States–Korea Free Trade Agreement
Implementation Act</short-title>. The procedures and penalties of this section
that apply to a violation of subsection (a) also apply to a violation of this
subsection.</text>
</paragraph><paragraph id="ID95f5d0002d9a4b879f08da18c5fa73ba"><enum>(2)</enum><header>Prompt and
voluntary disclosure of incorrect information</header><text>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.</text>
</paragraph><paragraph id="IDb65ea1d661f34959856c93d4b396ebcf"><enum>(3)</enum><header>Exception</header><text>A
person shall not be considered to have violated paragraph (1) if—</text>
<subparagraph id="IDdfb33642b0974ad09a3daff222d5adfc"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="ID322b84732ba54343abef6046401a9960"><enum>(B)</enum><text>the person
promptly and voluntarily provides written notice of the change in circumstances
to all persons to whom the person provided the
certification.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID0393d6d635084acaa5f846feca30f30f"><enum>(b)</enum><header>Denial of
preferential tariff treatment</header><text>Section 514 of the Tariff Act of
1930 (19 U.S.C. 1514) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="idB379A02388574D309762DFAD8C53A306" style="OLC">
<subsection id="ID8fc8519971824060b16d00db57f3268c"><enum>(j)</enum><header>Denial of
preferential tariff treatment under the United States–Korea free trade
agreement</header><text>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 <short-title>United States–Korea Free Trade Agreement Implementation
Act</short-title>, U.S. Customs and Border Protection, in accordance with
regulations issued by the Secretary of the Treasury, may suspend preferential
tariff treatment under the <short-title>United
States–Korea Free Trade Agreement Implementation Act</short-title> 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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID45ef2064f30748bc9db87e9889094797"><enum>205.</enum><header>Reliquidation
of entries</header><text display-inline="no-display-inline">Section 520(d) of
the Tariff Act of 1930 (19 U.S.C. 1520(d)) is amended in the matter preceding
paragraph (1)—</text>
<paragraph id="ID943b9759439942b2ad21c1e7700b5263"><enum>(1)</enum><text>by striking
<quote>or</quote>; and</text>
</paragraph><paragraph id="ID5845c3d72fb3420a9f86935b192b04b6"><enum>(2)</enum><text>by striking
<quote>for which</quote> and inserting <quote>, or section 202 of the
<short-title>United States–Korea Free Trade Agreement
Implementation Act</short-title> for which</quote>.</text>
</paragraph></section><section id="ID6fb1f89d58b942fabfbf5b7511a10dad"><enum>206.</enum><header>Recordkeeping
requirements</header><text display-inline="no-display-inline">Section 508 of
the Tariff Act of 1930 (19 U.S.C. 1508) is amended—</text>
<paragraph id="ID8b756c0a8ff1459ead82fb6d74065b2c"><enum>(1)</enum><text>by redesignating
subsection (i) as subsection (j);</text>
</paragraph><paragraph id="ID72ebbd8b70cb4ca7b4d52a550c2e6310"><enum>(2)</enum><text>by inserting
after subsection (h) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idEEE73AA10CC54CCEAE0B0A7FEF0BCC65" style="OLC">
<subsection id="ID696a08fc31ad4cf8a039f561245046fd"><enum>(i)</enum><header>Certifications
of origin for goods exported under the United States–Korea free trade
agreement</header>
<paragraph id="ID3eb32d8c87524c1e8133ecece89d725a"><enum>(1)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="ID3992013c9d214bdd9f1489fec98640f5"><enum>(A)</enum><header>Records and
supporting documents</header><text>The term <term>records and supporting
documents</term> means, with respect to an exported good under paragraph (2),
records and documents related to the origin of the good, including—</text>
<clause id="IDd3c169872a4e465e9f1f2537034f8671"><enum>(i)</enum><text>the purchase,
cost, and value of, and payment for, the good;</text>
</clause><clause id="ID83e248923fe94c95942e646ad8080908"><enum>(ii)</enum><text>the purchase,
cost, and value of, and payment for, all materials, including indirect
materials, used in the production of the good; and</text>
</clause><clause id="IDc92f8cc72be0404f88f54b0f0380fc75"><enum>(iii)</enum><text>the production
of the good in the form in which it was exported.</text>
</clause></subparagraph><subparagraph id="ID8c6d1658287d4191a9e80c2f2c35e98f"><enum>(B)</enum><header>KFTA
certification of origin</header><text>The term <term>KFTA certification of
origin</term> 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.</text>
</subparagraph></paragraph><paragraph id="IDaecbbb759bcf4b1d8f131575ff79a055"><enum>(2)</enum><header>Exports to
Korea</header><text>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).</text>
</paragraph><paragraph id="ID29a62f6ecffd4e0993b412f9641dfbbf"><enum>(3)</enum><header>Retention
period</header><text>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.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="ID6e67e29915ab4ca09047312e16d61aae"><enum>(3)</enum><text>in subsection
(j), as so redesignated, by striking <quote>(g), or (h)</quote> and inserting
<quote>(g), (h), or (i)</quote>.</text>
</paragraph></section><section id="ID0eb919943b7f4019b4f613389499bf70"><enum>207.</enum><header>Enforcement
relating to trade in textile or apparel goods</header>
<subsection id="ID2e81d8e69e0c479d9a17abf923e020f3"><enum>(a)</enum><header>Action during
verification</header>
<paragraph id="IDf7767f16b12249758bc55f2a7f11c28b"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="IDe8e86d7219df4694a7ca4ec5c43f0864"><enum>(2)</enum><header>Determination</header><text>A
determination under this paragraph is a determination of the Secretary
that—</text>
<subparagraph id="ID1fc5c5292acf427a9172864a174fb1e1"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="ID727928b303da4987ae0bcdcc8eea1ff5"><enum>(B)</enum><text>a claim that a
textile or apparel good exported or produced by such exporter or
producer—</text>
<clause id="ID7ea3d567b52948a8aa55fb6a41fd88cc"><enum>(i)</enum><text>qualifies as an
originating good under section 202, or</text>
</clause><clause id="IDe197bbc9d3fb426d9e8257eff25e1b17"><enum>(ii)</enum><text>is
a good of Korea,</text>
</clause><continuation-text continuation-text-level="subparagraph">is
accurate.</continuation-text></subparagraph></paragraph></subsection><subsection id="ID0fbe51e16041436db89c5d7d26fa7583"><enum>(b)</enum><header>Appropriate
action described</header><text>Appropriate action under subsection (a)(1)
includes—</text>
<paragraph id="IDf5b1797f55e743c78133d8f079cdb6f4"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="IDf00307f147ad402bad86ee98028c3f2e"><enum>(2)</enum><text>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).</text>
</paragraph></subsection><subsection id="ID04040e1d9068481ebeba5109addd7e5d"><enum>(c)</enum><header>Action when
information is insufficient</header><text>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.</text>
</subsection><subsection id="ID76ccba07a4ee47d888ac9d964da81d44"><enum>(d)</enum><header>Appropriate
action described</header><text>Appropriate action under subsection (c)
includes—</text>
<paragraph id="ID6fc6f00c93b0429992c65b90cb9ef169"><enum>(1)</enum><text>denial of
preferential tariff treatment under the Agreement with respect to—</text>
<subparagraph id="ID600b7fee3a2c4332ab43dbff54279aca"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDf7ee6a182e394a4da737532f613b5ac0"><enum>(B)</enum><text>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</text>
</subparagraph></paragraph><paragraph id="ID0157271db49b494eaddb8cf4e1443d6f"><enum>(2)</enum><text>denial of entry
into the United States of—</text>
<subparagraph id="ID37607aa8a2014c02b6e54a69ed8b3e7d"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDeb30ed50218b4f4090246c8a335c2977"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph></subsection><subsection id="ID69e02dfce7e346b6b0f948d6461f45d2"><enum>(e)</enum><header>Publication of
name of person</header><text>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—</text>
<paragraph id="IDaa02819366b34c01b1b524faa6e70846"><enum>(1)</enum><text>is engaged in
circumvention of applicable laws, regulations, or procedures affecting trade in
textile or apparel goods; or</text>
</paragraph><paragraph id="IDc2e755cbc995476d8fe864a6c33375da"><enum>(2)</enum><text>has failed to
demonstrate that it produces, or is capable of producing, textile or apparel
goods.</text>
</paragraph></subsection><subsection id="ID041bd5a46c604b67a14d5c3eeab2ec67"><enum>(f)</enum><header>Certificate of
eligibility</header><text>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.</text>
</subsection><subsection commented="no" id="ID2e6d07f912b14b558104719f0f71411a"><enum>(g)</enum><header>Verifications
in the United States</header><text>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—</text>
<paragraph commented="no" id="ID2cf3793c61854bdfa0fb7da8ea4649d7"><enum>(1)</enum><text>a claim of origin
under the agreement for a textile or apparel good is accurate; or</text>
</paragraph><paragraph commented="no" id="ID857677f7353c4840b20b4803615c5fe5"><enum>(2)</enum><text>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.</text>
</paragraph></subsection></section><section id="IDde878a5c86b54244baac67360092acb7"><enum>208.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary of the Treasury shall
prescribe such regulations as may be necessary to carry out—</text>
<paragraph id="ID6ea4ea2a282945b9941880841ce21a87"><enum>(1)</enum><text>subsections (a)
through (n) of section 202;</text>
</paragraph><paragraph id="IDf92053a32b8e4c929ea687bf9f9106bf"><enum>(2)</enum><text>the amendment
made by section 203; and</text>
</paragraph><paragraph id="ID182b4ecf3a93419192a2b1cef3194fdc"><enum>(3)</enum><text>any proclamation
issued under section 202(o).</text>
</paragraph></section><enum>III</enum><header>Relief from
imports</header>
<section id="idF32EDF9EF7E9493DA0324875D6578D57"><enum>301.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="ID5a205ced148e4548a3b14ec109914959"><enum>(1)</enum><header>Korean
article</header><text>The term <term>Korean article</term> means an article
that qualifies as an originating good under section 202(b).</text>
</paragraph><paragraph id="IDb75ec5f1d8964dafa80b2334b325965a"><enum>(2)</enum><header>Korean motor
vehicle article</header><text>The term <term>Korean motor vehicle
article</term> means a good provided for in heading 8703 or 8704 of the HTS
that qualifies as an originating good under section 202(b).</text>
</paragraph><paragraph id="IDb0fc330b08dd42d7aed8443482b8c788"><enum>(3)</enum><header>Korean textile
or apparel article</header><text>The term <term>Korean textile or apparel
article</term> means a textile or apparel good (as defined in section 3(5))
that is a Korean article.</text>
</paragraph></section><subtitle id="idDA89E422FAC54927A1BAB3A4852E59F9"><enum>A</enum><header>Relief from
imports benefitting from the Agreement</header>
<section id="id4F0CE3B52D884AC9A202C123C17832C7"><enum>311.</enum><header>Commencing of
action for relief</header>
<subsection id="IDad04ff2d610a4ca38ab8fb24c3316436"><enum>(a)</enum><header>Filing of
petition</header>
<paragraph id="IDe4df967540b546d882a39a5c3dc3e037"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID1a7426ca89e1491eb16a98be09ac8e3d"><enum>(2)</enum><header>Provisional
relief</header><text>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)).</text>
</paragraph><paragraph id="ID5b387fbbf9d74c29a323d794e3d6fd56"><enum>(3)</enum><header>Critical
circumstances</header><text>Any allegation that critical circumstances exist
shall be included in the petition.</text>
</paragraph></subsection><subsection id="ID6bf79179d12547a08bb584f01ffccdb9"><enum>(b)</enum><header>Investigation
and determination</header><text>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.</text>
</subsection><subsection id="ID76ceb8cbefa4409f8ac5c8e6a343e022"><enum>(c)</enum><header>Applicable
provisions</header><text>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):</text>
<paragraph id="ID1b49b6faf8fd4c2c97ab419e425e2dc4"><enum>(1)</enum><text>Paragraphs (1)(B)
and (3) of subsection (b).</text>
</paragraph><paragraph id="IDbd8cbf5d3c5a4b35a9fec979051f863b"><enum>(2)</enum><text>Subsection
(c).</text>
</paragraph><paragraph id="IDc747f3c5832f470b9eaa448c63df4c05"><enum>(3)</enum><text>Subsection
(d).</text>
</paragraph><paragraph id="ID8ecfe3d7bb1546e28f55d2e32fce8342"><enum>(4)</enum><text>Subsection
(i).</text>
</paragraph></subsection><subsection id="IDb630df4f019e47d8a07a2a2025fb3865"><enum>(d)</enum><header>Articles exempt
from investigation</header><text>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.</text>
</subsection></section><section id="ID22174a60cd5f45e2a40adbe41add4c96"><enum>312.</enum><header>Commission
action on petition</header>
<subsection id="IDfd9d84ab6da0412db46cfaabe2e9aa01"><enum>(a)</enum><header>Determination</header><text>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.</text>
</subsection><subsection id="ID3735f49a08c94ef2a92a326fb7a5fb25"><enum>(b)</enum><header>Applicable
provisions</header><text>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).</text>
</subsection><subsection id="ID57b126fc52db44c1ad37ac56043dcee7"><enum>(c)</enum><header>Additional
finding and recommendation if determination affirmative</header>
<paragraph id="IDf6878be7d9ce4772af4720b64e2a86f7"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="IDd9fc1b1c702a4ed283d8b1213f5135ee"><enum>(2)</enum><header>Limitation on
relief</header><text>The import relief recommended by the Commission under this
subsection shall be limited to the relief described in section 313(c).</text>
</paragraph><paragraph id="IDb17348fdc3944e7aa2547b13f2baa495"><enum>(3)</enum><header>Voting;
separate views</header><text>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.</text>
</paragraph></subsection><subsection id="ID33deca1bbe834deeb82b0d6386e6b1af"><enum>(d)</enum><header>Report to
President</header><text>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—</text>
<paragraph id="ID0f907b8817d64968bca12060defb6417"><enum>(1)</enum><text>the determination
made under subsection (a) and an explanation of the basis for the
determination;</text>
</paragraph><paragraph id="IDf1e539d54c0e4c02ab94ca242cd2ea9b"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="ID41246c20320248b98fb22fe430890bcb"><enum>(3)</enum><text>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).</text>
</paragraph></subsection><subsection id="ID99aca53774bf4cfe9404fad18347bb6b"><enum>(e)</enum><header>Public
notice</header><text>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.</text>
</subsection></section><section id="IDb81b79c992be4a6785c6250ba08d3fc0"><enum>313.</enum><header>Provision of
relief</header>
<subsection id="ID08a79da971654c089f14a8f570e84c60"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="ID43a410b2589e44d2a80f05abcaf661a5"><enum>(b)</enum><header>Exception</header><text>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.</text>
</subsection><subsection id="ID044423b2a8724474b3f87f41d1b0af3d"><enum>(c)</enum><header>Nature of
relief</header>
<paragraph id="ID9e989a547d994cd0aaf1c47940b2b0f4"><enum>(1)</enum><header>In
general</header><text>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:</text>
<subparagraph id="ID94ba3f87da194d38af58fb009ec653ce"><enum>(A)</enum><text>The suspension of
any further reduction provided for under Annex 2-B of the Agreement in the duty
imposed on the article.</text>
</subparagraph><subparagraph id="ID16b5b1e7076e42e19511892b1627cf2d"><enum>(B)</enum><text>An increase in
the rate of duty imposed on the article to a level that does not exceed the
lesser of—</text>
<clause id="IDe2b1e12857d842b58259bfc76c5e8355"><enum>(i)</enum><text>the
column 1 general rate of duty imposed under the HTS on like articles at the
time the import relief is provided; or</text>
</clause><clause id="ID6eee2ed2e2064491b022e793c3f3eef3"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="idB7CB4F0B3DCB46BA82BD23944AFF824A"><enum>(2)</enum><header>Duties applied
on a seasonal basis</header><text>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:</text>
<subparagraph id="id075B818E49FD469FB8E052E2B58BDACC"><enum>(A)</enum><text>The suspension of
any further reduction provided for under Annex 2-B of the Agreement in the duty
imposed on the article.</text>
</subparagraph><subparagraph id="IDc6be48d1c5994b649f72c32496b86239"><enum>(B)</enum><text>An increase in
the rate of duty imposed on the article to a level that does not exceed the
lesser of—</text>
<clause id="ID53eb3b188ee7432ba6607da3823640dd"><enum>(i)</enum><text>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</text>
</clause><clause id="IDda9fc7b8b60c4331abda8ff28e4c0caa"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd1c743a6054145eab7b96264bdf8ec0c"><enum>(3)</enum><header>Progressive
liberalization</header><text>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.</text>
</paragraph></subsection><subsection id="ID4ba52fe460bd4a40804ae5030c6f374d"><enum>(d)</enum><header>Period of
relief</header>
<paragraph id="ID67bec1db1b054757aa893f96d2d87529"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), any import relief that the
President provides under this section may not be in effect for more than 2
years.</text>
</paragraph><paragraph id="ID4b046996d6c9432fbfc5808df95d4b34"><enum>(2)</enum><header>Extension</header>
<subparagraph id="ID8052cfbb38bd40718a847fb6699016c5"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="IDb44be4eca6f64b4d8375228e2830b274"><enum>(i)</enum><text>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</text>
</clause><clause id="IDd2684d61a9db4328aaf4f09cf0b19ef0"><enum>(ii)</enum><text>there is
evidence that the industry is making a positive adjustment to import
competition.</text>
</clause></subparagraph><subparagraph id="ID6d114d73cc5846daa99d34c4091f9d17"><enum>(B)</enum><header>Action by
commission</header>
<clause id="ID52454f53ee1c45adab4b2eec2c54e7dc"><enum>(i)</enum><header>Investigation</header><text>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.</text>
</clause><clause id="IDc544bc8741504c0f82146ad9d9f7cb48"><enum>(ii)</enum><header>Notice and
hearing</header><text>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.</text>
</clause><clause id="IDd26bb9ef3ced4be09b25309b597e29fd"><enum>(iii)</enum><header>Report</header><text>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.</text>
</clause></subparagraph><subparagraph id="ID2233a199a4fb4dfe91ce353a0c8e4ea4"><enum>(C)</enum><header>Period of
import relief</header><text>Any import relief provided under this section,
including any extensions thereof, may not, in the aggregate, be in effect for
more than 3 years.</text>
</subparagraph></paragraph></subsection><subsection id="ID459201bf86fc4c7881a250417786942e"><enum>(e)</enum><header>Rate after
termination of import relief</header><text>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.</text>
</subsection><subsection id="ID216eaa62d405462faceb0a30646a92a9"><enum>(f)</enum><header>Articles exempt
from relief</header><text>No import relief may be provided under this section
on any article that is subject to import relief under—</text>
<paragraph id="ID01f84b473b6e442d93850fe41e02892d"><enum>(1)</enum><text>subtitle B or C;
or</text>
</paragraph><paragraph id="ID97cb8c09c4ec44b3b5f8c80d2b45bb40"><enum>(2)</enum><text>chapter 1 of
title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).</text>
</paragraph></subsection></section><section id="ID7fded1d87f2b48f399f8019f78a88952"><enum>314.</enum><header>Termination of
relief authority</header>
<subsection id="ID9f58c062cc264b74a4ea267bd3ac8072"><enum>(a)</enum><header>General
rule</header><text>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.</text>
</subsection><subsection id="ID71371d4c7d6041489886e7c3c0475643"><enum>(b)</enum><header>Exception</header><text>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.</text>
</subsection><subsection id="ID9667b06cd5ca4784b992eccbde504394"><enum>(c)</enum><header>Presidential
determination</header><text>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.</text>
</subsection></section><section id="ID2f0d67318f82448d86729b189c4f611a"><enum>315.</enum><header>Compensation
authority</header><text display-inline="no-display-inline">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.).</text>
</section><section id="ID819f529f9b454d339d7f4867c6521c9b"><enum>316.</enum><header>Confidential
business information</header><text display-inline="no-display-inline">Section
202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is amended in the
first sentence—</text>
<paragraph id="ID4a0e4061d1d645aa854e82451018fd48"><enum>(1)</enum><text>by striking
<quote>and</quote>; and</text>
</paragraph><paragraph id="ID92c062f1e77c4ce2b645bbc47b70603d"><enum>(2)</enum><text>by inserting
before the period at the end <quote>, and title III of the
<short-title>United States–Korea Free Trade Agreement
Implementation Act</short-title></quote>.</text>
</paragraph></section></subtitle><subtitle id="id1FC845DD41284EA8B3D9B275537737FF"><enum>B</enum><header>Motor vehicle
safeguard measures</header>
<section id="id82EF0A8D0E894E70A0DAE0D4C0ED31C1"><enum>321.</enum><header>Motor vehicle
safeguard measures</header><text display-inline="no-display-inline">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:</text>
<paragraph id="id10B71060752F4EA3B9E1552C5F2721A4"><enum>(1)</enum><text>Section 311(d)
and paragraphs (2) and (3) of 313(c) shall not apply.</text>
</paragraph><paragraph id="id497B793DCD6948848CC41599C787C0F2"><enum>(2)</enum><text>Section
313(d)(2)(A) shall be applied and administered by substituting <quote>2
years</quote> for <quote>1 year</quote>.</text>
</paragraph><paragraph id="id8653B91D257E4FBBB0510F427A0FD123"><enum>(3)</enum><text>Section
313(d)(2)(C) shall be applied and administered by substituting <quote>4
years</quote> for <quote>3 years</quote>.</text>
</paragraph><paragraph id="id37EC3C7FC104491AB22AFBB9DF53E680"><enum>(4)</enum><text>Section 313(f)(1)
shall be applied and administered by substituting <quote>subtitle A</quote> for
<quote>subtitle B or C</quote>.</text>
</paragraph><paragraph id="id353B5C5B57FA47809B9C0261CE8C6FCB"><enum>(5)</enum><text>Section 314(b)
shall be applied and administered as if such section read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idD69E53C40F6D4AE4BA4581DD532BCE2E" style="OLC">
<subsection id="ID3c2c9e468e054be58cd6846045019bcc"><enum>(b)</enum><header>Exception</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="id6DA4578EEBFE4EF9A71A817CF64A0022"><enum>C</enum><header>Textile and
apparel safeguard measures</header>
<section id="idF03E930475E84550AB77C0ADA71E027A"><enum>331.</enum><header>Commencement
of action for relief</header>
<subsection id="IDe5e5884174114c90a56eda1df0a0e372"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="IDd85e93e31f7c406a984f9f8ab1d5281c"><enum>(b)</enum><header>Publication of
request</header><text>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.</text>
</subsection></section><section id="IDe6984907612543d796e7a1421f62af37"><enum>332.</enum><header>Determination
and provision of relief</header>
<subsection id="IDaa8512cf62b842f693c5d650fdc1522f"><enum>(a)</enum><header>Determination</header>
<paragraph id="ID5ce5825f924844dd8294ed4466b813bc"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID33b6225078854838a209258d3520f9c0"><enum>(2)</enum><header>Serious
damage</header><text>In making a determination under paragraph (1), the
President—</text>
<subparagraph id="ID7a9017f6fbc44791ab8b9503ee70fa3d"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDca01d150f5224b75b375fdf720786e0d"><enum>(B)</enum><text>shall not
consider changes in technology or consumer preference as factors supporting a
determination of serious damage or actual threat thereof.</text>
</subparagraph></paragraph></subsection><subsection id="ID35e99e6005084b2db6eaa4101b54a9df"><enum>(b)</enum><header>Provision of
relief</header>
<paragraph id="ID2253a9b0bd994dc390f22bec7682674e"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="IDbb1d6f29c4404b36946911e6bf486279"><enum>(2)</enum><header>Nature of
relief</header><text>The relief that the President is authorized to provide
under this subsection with respect to imports of an article is—</text>
<subparagraph id="IDe37f2f3c8ec0445588a8220e8bdf3f7c"><enum>(A)</enum><text>the suspension of
any further reduction provided for under Annex 2-B of the Agreement in the duty
imposed on the article; or</text>
</subparagraph><subparagraph id="ID0753dd46bb61442fa4b1524728fd0bb2"><enum>(B)</enum><text>an increase in
the rate of duty imposed on the article to a level that does not exceed the
lesser of—</text>
<clause id="ID05de0cace199434693e44b1ad0c6aa56"><enum>(i)</enum><text>the
column 1 general rate of duty imposed under the HTS on like articles at the
time the import relief is provided; or</text>
</clause><clause id="IDad39d106196d4a7a8f22b44d11b83a63"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection></section><section id="ID3d046455a49f4380ae4c6e8007748865"><enum>333.</enum><header>Period of
relief</header>
<subsection id="ID8acb43b7ebea41af985f5959b4c4a0c7"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="ID74d758bd8b5244f98acd3fefd0080c10"><enum>(b)</enum><header>Extension</header>
<paragraph id="IDaca1a5f17fc04effa7c14b9785ac4fb4"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="IDefd00674b8fc43609e2640852a54a2d9"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="ID9a888f76d4b14f06ad7ad2d0a62632e3"><enum>(B)</enum><text>there is evidence
that the industry is making a positive adjustment to import competition.</text>
</subparagraph></paragraph><paragraph id="ID664ac197edb7401aa5bfb49a09afd38e"><enum>(2)</enum><header>Limitation</header><text>Any
relief provided under this subtitle, including any extensions thereof, may not,
in the aggregate, be in effect for more than 4 years.</text>
</paragraph></subsection></section><section id="ID194926c25f874bc982eb2aacbabd7882"><enum>334.</enum><header>Articles
exempt from relief</header><text display-inline="no-display-inline">The
President may not provide import relief under this subtitle with respect to an
article if—</text>
<paragraph id="ID312f759bd52b41c3ac5a831c24a055e9"><enum>(1)</enum><text>import relief
previously has been provided under this subtitle with respect to that article;
or</text>
</paragraph><paragraph id="ID80f979d1d4e4414d9d53d68d1d26fc08"><enum>(2)</enum><text>the article is
subject to import relief under—</text>
<subparagraph commented="no" id="ID557cf1f0f598471082c24a91805f8fa4"><enum>(A)</enum><text>subtitle A;
or</text>
</subparagraph><subparagraph id="IDbc1656dadc4e49acbf22b3e6189e55b2"><enum>(B)</enum><text>chapter 1 of
title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).</text>
</subparagraph></paragraph></section><section id="IDb127badd7a0947efada0b06d5dfd7921"><enum>335.</enum><header>Rate after
termination of import relief</header><text display-inline="no-display-inline">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.</text>
</section><section id="ID4afd2ba5313c47438852d9bd482c94f0"><enum>336.</enum><header>Termination of
relief authority</header><text display-inline="no-display-inline">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.</text>
</section><section id="ID81c0bc4e5bb84c628f34f682ba3d10d7"><enum>337.</enum><header>Compensation
authority</header><text display-inline="no-display-inline">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.).</text>
</section><section id="ID9619f32b388448d7bd2e1bea4089e7c4"><enum>338.</enum><header>Confidential
business information</header><text display-inline="no-display-inline">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.</text>
</section></subtitle><subtitle id="id3B8F61F9B7574B08BBDA2668AA7A9293"><enum>D</enum><header>Cases under title
II of the Trade Act of 1974</header>
<section id="id9DFD921EA509459C80758EED967365D5"><enum>341.</enum><header>Findings and
action on Korean articles</header>
<subsection id="ID2d9bd9ff06fd465ab9a8bb5d0cbb14b5"><enum>(a)</enum><header>Effect of
imports</header><text>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.</text>
</subsection><subsection id="IDe7ce62cc5a704e158a34f1997c15057a"><enum>(b)</enum><header>Presidential
determination regarding Korean articles</header><text>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).</text>
</subsection></section></subtitle><enum>IV</enum><header>Procurement</header>
<section id="idAB4959530FA4419D914DB0ECDBA09062"><enum>401.</enum><header>Eligible
products</header><text display-inline="no-display-inline">Section 308(4)(A) of
the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)(A)) is amended—</text>
<paragraph id="ID09e37533a16b46c6b7e8034e49a85667"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of clause (vi);</text>
</paragraph><paragraph id="IDb424d806612c4618be9de782d1e3aabd"><enum>(2)</enum><text>by striking the
period at the end of clause (vii) and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="ID25d098cab7144d4c8e2210557fbc584b"><enum>(3)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idE5058F10C00848139D28DC82245C115E" style="OLC">
<clause id="IDa613ed2d5e0c4663b264a5d46902a3a9"><enum>(viii)</enum><text>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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>V</enum><header>Offsets</header>
<section id="id0BE34D1D06E04666B5F0EBAB95AC0ADF"><enum>501.</enum><header>Increase in
penalty on paid preparers who fail to comply with earned income tax credit due
diligence requirements</header>
<subsection id="id1B677516115646A6856AEAD25F87A885"><enum>(a)</enum><header>In
general</header><text>Section 6695(g) of the Internal Revenue Code of 1986 is
amended by striking <quote>$100</quote> and inserting
<quote>$500</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idEA68105267C948E587387DE62F25BF5D"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to returns required to be filed after December 31,
2011.</text>
</subsection></section><section id="id70EEDE3B0DC842E4A7DE78D07398E308"><enum>502.</enum><header>Requirement
for prisons located in the United States to provide information for tax
administration</header>
<subsection id="idB07650C10279404DA64477E861D057DD"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id1616B6AC81B8494AAA14D3F57F9C31EC" style="OLC">
<section id="idB8AF27BDE92C4A638B46F4FF8F2329A5"><enum>6116.</enum><header>Requirement
for prisons located in United States to provide information for tax
administration</header>
<subsection id="id440750C8C1AA40DF977E4A85DA634DF3"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="idF0C06C7C0AB940AEB6F06B82A44D7EEF"><enum>(b)</enum><header>Information</header><text>The
information with respect to each inmate is—</text>
<paragraph id="id286F313C2D964E0BA7F25A3F9FABC6B0"><enum>(1)</enum><text>first, middle,
and last name,</text>
</paragraph><paragraph id="id7EAEBE0638774F63A4B6CBA538573439"><enum>(2)</enum><text>date of
birth,</text>
</paragraph><paragraph id="id15C988F99B504FE5B441887A1D94F92E"><enum>(3)</enum><text>institution of
current incarceration or, for released inmates, most recent
incarceration,</text>
</paragraph><paragraph id="idBF5C033355F047C0831829CC7271CB04"><enum>(4)</enum><text>prison assigned
inmate number,</text>
</paragraph><paragraph id="id83A9FBAAAA2C43DDA811E825EF2A9A07"><enum>(5)</enum><text>the date of
incarceration,</text>
</paragraph><paragraph id="idB604904BBF67431EA90C50B25CA72A55"><enum>(6)</enum><text>the date of
release or anticipated date of release,</text>
</paragraph><paragraph id="id95A5FC0442D34734BE0AA5207B3D1840"><enum>(7)</enum><text>the date of work
release,</text>
</paragraph><paragraph id="id1927A71A855140E0BE5B60C153532116"><enum>(8)</enum><text>taxpayer
identification number and whether the prison has verified such number,</text>
</paragraph><paragraph id="idAD175D1118AB4A8BA14D0B48FF92D2BE"><enum>(9)</enum><text>last known
address, and</text>
</paragraph><paragraph id="id71466AF0EA5041E492FE11066327867D"><enum>(10)</enum><text>any additional
information as the Secretary may request.</text>
</paragraph></subsection><subsection id="idFE1FEDC796504D6D93C86738373DCC28"><enum>(c)</enum><header>Format</header><text>The
Secretary shall determine the electronic format of the information described in
subsection
(b).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idD20CC32AECD74DFB85E8A179C0952F50"><enum>(b)</enum><header>Clerical
amendment</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id56980EDDC2FF437CA0F1F62A749DC4DE" style="OLC">
<toc>
<toc-entry idref="idB8AF27BDE92C4A638B46F4FF8F2329A5" level="section">Sec. 6116. Requirement for prisons located in United States to
provide information for tax administration.</toc-entry>
<toc-entry bold="off" level="section">Sec. 6117. Cross
reference.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idD6CB04448ABD4F0F917C2C3326816B0D"><enum>503.</enum><header>Rate for
merchandise processing fees</header><text display-inline="no-display-inline">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—</text>
<paragraph id="ID455a5c853ff0421ba4ecd2eab02dadd2"><enum>(1)</enum><text>in subparagraph
(A), by substituting <quote>0.3464</quote> for <quote>0.21</quote>; and</text>
</paragraph><paragraph id="ID911f0f1175ac4483aa77717ec6c60a70"><enum>(2)</enum><text>in subparagraph
(B)(i), by substituting <quote>0.3464</quote> for <quote>0.21</quote>.</text>
</paragraph></section><section id="id3CD482196D784A60A83293D1ECF9244D"><enum>504.</enum><header>Extension of
customs user fees</header>
<subsection id="ID172BBF1B156A40D9B29955CEADDC8C37"><enum>(a)</enum><header>In
general</header><text>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
<quote>January 7, 2020</quote> and inserting <quote>August 2,
2021</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDAC6021F5BC874D97A07983DBAAB687D2"><enum>(b)</enum><header>Other
fees</header><text>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
<quote>January 14, 2020</quote> and inserting <quote>December 8,
2020</quote>.</text>
</subsection></section><section id="IDfa2450c478d7419d8c8886d9bdd56640"><enum>505.</enum><header>Time for
payment of corporate estimated taxes</header><text display-inline="no-display-inline">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)—</text>
<paragraph id="idA22A1E01A6514AB99DF296E43F29B713"><enum>(1)</enum><text>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);</text>
</paragraph><paragraph id="id531A6FDED9DF4D5A8EF8FE523238B8CE"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="ID7164474da3684d75a638814788f8e366"><enum>(3)</enum><text>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.</text>
</paragraph></section>
October 11, 2011
Reported without amendment