[House Document 108-90]
[From the U.S. Government Publishing Office]



                                     

108th Congress, 1st Session - - - - - - - - - - - - - House Document 108-90


 
NOTIFICATION OF REQUIRED CHANGES TO THE UNITED STATES-CHILE FREE TRADE 
                               AGREEMENT

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 NOTIFICATION OF CHANGES TO EXISTING LAW REQUIRED TO BRING THE UNITED 
 STATES INTO COMPLIANCE WITH OBLIGATIONS UNDER THE UNITED STATES-CHILE 
 FREE TRADE AGREEMENT, PURSUANT TO PUB. L. 107-210, SEC. 2105(a)(1)(B)




July 7, 2003.--Referred jointly to the Committees on Ways and Means and 
                the Judiciary, and ordered to be printed
                                           The White House,
                                          Washington, July 3, 2003.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: On June 6, 2003, the United States Trade 
Representative signed the United States-Chile Free Trade 
Agreement on behalf of the United States. Consistent with 
section 2105(a)(1)(B) of the Trade Act of 2002 (Public Law 107-
210), I am submitting a description of the changes to existing 
laws, prepared by my Administration, that would be required to 
bring the United States into compliance with that Agreement.
    I look forward to working with the Congress in developing 
legislation to implement this important Free Trade Agreement.
            Sincerely,
                                                    George W. Bush.
   Changes to Existing Law Required To Bring the United States Into 
 Compliance With Obligations Under the United States-Chile Free Trade 
                               Agreement

    The United States must amend several drawback-related 
statutes in order to comply with Article 3.8 of the United 
States-Chile Free Trade Agreement (``the Agreement''). In 
particular, amendments must be made to sections 311-313 and 562 
of the Tariff Act of 1930 (19 U.S.C. Sec. Sec. 1311-1312 & 
1562), and section 3(a) of the Act of June 18, 1934 (commonly 
known as the ``Foreign Trade Zones Act'') (19 U.S.C. 
Sec. 81c(a)). These amendments will limit the amount of duty 
drawback that may be paid to an exporter of certain goods to 
Chile beginning 8 years after the Agreement enters into force. 
Beginning 11 years after the Agreement enters into force, the 
amendments will provide that, with limited exceptions, no 
drawback will be available for exports to Chile.
    The United States must amend section 13031(b) of the 
Consolidated Omnibus Reconciliation Act of 1985 (19 U.S.C. 
Sec. 58c(b)). The amendment will exempt imports qualifying as 
``originating goods'' under the Agreement from certain customs 
user fees, as required by Article 3.12(4) of the Agreement.
    The United States must amend section 592(c) of the Tariff 
Act of 1930 (19 U.S.C. Sec. 1592(c)). The amendment will exempt 
an importer from penalties for an improper claim that a good 
qualifies as an originating good under the Agreement, provided 
that the importer voluntarily corrects the improper claim. This 
amendment is necessary to comply with Article 4.16(4) of the 
Agreement.
    The United States must amend section 508 of the Tariff Act 
of 1930 (19 U.S.C. Sec. 1508) to require U.S. producers and 
exporters that issue certificates stating that goods quality as 
originating goods under the Agreement to keep copies of such 
certificates and supporting documents and information for at 
least 5 years and render them for examination and inspection by 
U.S. customs officials, upon request. This amendment is 
necessary to comply with Article 4.15 of the Agreement.
    Also to comply with Article 4.15, the United States must 
amend section 592 of the Tariff Act of 1930 (19 U.S.C. 
Sec. 1592) by adding a new subsection addressing false 
certifications by U.S. exporters and producers that goods 
qualify as originating goods under the Agreement. The amendment 
will provide for the imposition of penalties for such false 
certifications, with exceptions for immediate and voluntary 
disclosure of incorrect information to every person to whom a 
false certificate of origin was issued (as required by Article 
4.15(3) of the Agreement).
    The United States must amend section 520(d) of the Tariff 
Act of 1930 (19 U.S.C. Sec. 1520(d)) to provide that, where a 
good qualifying as an originating good under the Agreement is 
imported into the United States, the importer has up to 1 year 
from the date of importation to claim preferential tariff 
treatment under the Agreement for that good. This amendment is 
necessary to comply with Article 4.12(3) of the Agreement.
    The United States must amend sections 101(a)(15) and 214(g) 
of the Immigration and Nationality Act (8 U.S.C. 
Sec. Sec. 1101(a)(15) & 1184(g)). The amendments will permit 
Chilean nationals qualifying as ``professionals'' under the 
Agreement to enter the United States temporarily, as required 
by Section D of Annex 14.3 of the Agreement.

                                
