[Congressional Record Volume 157, Number 151 (Tuesday, October 11, 2011)]
[House]
[Pages H6758-H6771]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNITED STATES-KOREA FREE TRADE AGREEMENT IMPLEMENTATION ACT
Mr. CAMP. Madam Speaker, pursuant to House Resolution 425, I call up
the bill (H.R. 3080) to implement the United States-Korea Free Trade
Agreement, and ask for its immediate consideration.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 425, the bill
is considered read.
The text of the bill is as follows:
H.R. 3080
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) Short Title.--This Act may be cited as the ``United
States-Korea Free Trade Agreement Implementation Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and
initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.
TITLE II--CUSTOMS PROVISIONS
Sec. 201. Tariff modifications.
Sec. 202. Rules of origin.
Sec. 203. Customs user fees.
Sec. 204. Disclosure of incorrect information; false certifications of
origin; denial of preferential tariff treatment.
Sec. 205. Reliquidation of entries.
Sec. 206. Recordkeeping requirements.
Sec. 207. Enforcement relating to trade in textile or apparel goods.
Sec. 208. Regulations.
TITLE III--RELIEF FROM IMPORTS
Sec. 301. Definitions.
Subtitle A--Relief From Imports Benefitting From the Agreement
Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.
Subtitle B--Motor Vehicle Safeguard Measures
Sec. 321. Motor vehicle safeguard measures.
Subtitle C--Textile and Apparel Safeguard Measures
Sec. 331. Commencement of action for relief.
Sec. 332. Determination and provision of relief.
Sec. 333. Period of relief.
Sec. 334. Articles exempt from relief.
Sec. 335. Rate after termination of import relief.
Sec. 336. Termination of relief authority.
Sec. 337. Compensation authority.
Sec. 338. Confidential business information.
Subtitle D--Cases Under Title II of the Trade Act of 1974
Sec. 341. Findings and action on Korean articles.
[[Page H6759]]
TITLE IV--PROCUREMENT
Sec. 401. Eligible products.
TITLE V--OFFSETS
Sec. 501. Increase in penalty on paid preparers who fail to comply with
earned income tax credit due diligence requirements.
Sec. 502. Requirement for prisons located in the United States to
provide information for tax administration.
Sec. 503. Rate for merchandise processing fees.
Sec. 504. Extension of customs user fees.
Sec. 505. Time for payment of corporate estimated taxes.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to approve and implement the free trade agreement
between the United States and Korea entered into under the
authority of section 2103(b) of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C. 3803(b));
(2) to secure the benefits of the agreement entered into
pursuant to an exchange of letters between the United States
and the Government of Korea on February 10, 2011;
(3) to strengthen and develop economic relations between
the United States and Korea for their mutual benefit;
(4) to establish free trade between the United States and
Korea through the reduction and elimination of barriers to
trade in goods and services and to investment; and
(5) to lay the foundation for further cooperation to expand
and enhance the benefits of the Agreement.
SEC. 3. DEFINITIONS.
In this Act:
(1) Agreement.--The term ``Agreement'' means the United
States-Korea Free Trade Agreement approved by Congress under
section 101(a)(1).
(2) Commission.--The term ``Commission'' means the United
States International Trade Commission.
(3) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(4) Korea.--The term ``Korea'' means the Republic of Korea.
(5) Textile or apparel good.--The term ``textile or apparel
good'' means a good listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
(a) Approval of Agreement and Statement of Administrative
Action.--Pursuant to section 2105 of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C. 3805) and section
151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress
approves--
(1) the United States-Korea Free Trade Agreement entered
into on June 30, 2007, with the Government of Korea, and
submitted to Congress on October 3, 2011; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to Congress on
October 3, 2011.
(b) Conditions for Entry Into Force of the Agreement.--At
such time as the President determines that Korea has taken
measures necessary to comply with those provisions of the
Agreement that are to take effect on the date on which the
Agreement enters into force, the President is authorized to
exchange notes with the Government of Korea providing for the
entry into force, on or after January 1, 2012, of the
Agreement with respect to the United States.
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND
STATE LAW.
(a) Relationship of Agreement to United States Law.--
(1) United States law to prevail in conflict.--No provision
of the Agreement, nor the application of any such provision
to any person or circumstance, which is inconsistent with any
law of the United States shall have effect.
(2) Construction.--Nothing in this Act shall be construed--
(A) to amend or modify any law of the United States, or
(B) to limit any authority conferred under any law of the
United States,
unless specifically provided for in this Act.
(b) Relationship of Agreement to State Law.--
(1) Legal challenge.--No State law, or the application
thereof, may be declared invalid as to any person or
circumstance on the ground that the provision or application
is inconsistent with the Agreement, except in an action
brought by the United States for the purpose of declaring
such law or application invalid.
(2) Definition of state law.--For purposes of this
subsection, the term ``State law'' includes--
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business of
insurance.
(c) Effect of Agreement With Respect to Private Remedies.--
No person other than the United States--
(1) shall have any cause of action or defense under the
Agreement or by virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any
provision of law, any action or inaction by any department,
agency, or other instrumentality of the United States, any
State, or any political subdivision of a State, on the ground
that such action or inaction is inconsistent with the
Agreement.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO
FORCE AND INITIAL REGULATIONS.
(a) Implementing Actions.--
(1) Proclamation authority.--After the date of the
enactment of this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations,
as may be necessary to ensure that any provision of this Act,
or amendment made by this Act, that takes effect on the date
on which the Agreement enters into force is appropriately
implemented on such date, but no such proclamation or
regulation may have an effective date earlier than the date
on which the Agreement enters into force.
(2) Effective date of certain proclaimed actions.--Any
action proclaimed by the President under the authority of
this Act that is not subject to the consultation and layover
provisions under section 104 may not take effect before the
15th day after the date on which the text of the proclamation
is published in the Federal Register.
(3) Waiver of 15-day restriction.--The 15-day restriction
contained in paragraph (2) on the taking effect of proclaimed
actions is waived to the extent that the application of such
restriction would prevent the taking effect on the date on
which the Agreement enters into force of any action
proclaimed under this section.
(b) Initial Regulations.--Initial regulations necessary or
appropriate to carry out the actions required by or
authorized under this Act or proposed in the statement of
administrative action submitted under section 101(a)(2) to
implement the Agreement shall, to the maximum extent
feasible, be issued within 1 year after the date on which the
Agreement enters into force. In the case of any implementing
action that takes effect on a date after the date on which
the Agreement enters into force, initial regulations to carry
out that action shall, to the maximum extent feasible, be
issued within 1 year after such effective date.
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND
EFFECTIVE DATE OF, PROCLAIMED ACTIONS.
If a provision of this Act provides that the implementation
of an action by the President by proclamation is subject to
the consultation and layover requirements of this section,
such action may be proclaimed only if--
(1) the President has obtained advice regarding the
proposed action from--
(A) the appropriate advisory committees established under
section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
(B) the Commission;
(2) the President has submitted to the Committee on Finance
of the Senate and the Committee on Ways and Means of the
House of Representatives a report that sets forth--
(A) the action proposed to be proclaimed and the reasons
therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first
day on which the requirements set forth in paragraphs (1) and
(2) have been met, has expired; and
(4) the President has consulted with the committees
referred to in paragraph (2) regarding the proposed action
during the period referred to in paragraph (3).
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
(a) Establishment or Designation of Office.--The President
is authorized to establish or designate within the Department
of Commerce an office that shall be responsible for providing
administrative assistance to panels established under chapter
22 of the Agreement. The office shall not be considered to be
an agency for purposes of section 552 of title 5, United
States Code.
(b) Authorization of Appropriations.--There are authorized
to be appropriated for each fiscal year after fiscal year
2011 to the Department of Commerce up to $750,000 for the
establishment and operations of the office established or
designated under subsection (a) and for the payment of the
United States share of the expenses of panels established
under chapter 22 of the Agreement.
SEC. 106. ARBITRATION OF CLAIMS.
The United States is authorized to resolve any claim
against the United States covered by article 11.16.1(a)(i)(C)
or article 11.16.1(b)(i)(C) of the Agreement, pursuant to the
Investor-State Dispute Settlement procedures set forth in
section B of chapter 11 of the Agreement.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
(a) Effective Dates.--Except as provided in subsection (b),
this Act and the amendments made by this Act take effect on
the date on which the Agreement enters into force.
(b) Exceptions.--
(1) In general.--Sections 1 through 3, section 207(g), this
title, and title V take effect on the date of the enactment
of this Act.
(2) Certain amendatory provisions.--The amendments made by
sections 203, 204, 206, and 401 of this Act take effect on
the date of the enactment of this Act and apply with respect
to Korea on the date on which the Agreement enters into
force.
(c) Termination of the Agreement.--On the date on which the
Agreement terminates, this Act (other than this subsection
[[Page H6760]]
and title V) and the amendments made by this Act (other than
the amendments made by title V) shall cease to have effect.
TITLE II--CUSTOMS PROVISIONS
SEC. 201. TARIFF MODIFICATIONS.
(a) Tariff Modifications Provided for in the Agreement.--
The President may proclaim--
(1) such modifications or continuation of any duty,
(2) such continuation of duty-free or excise treatment, or
(3) such additional duties,
as the President determines to be necessary or appropriate to
carry out or apply articles 2.3, 2.5, and 2.6, and Annex 2-B,
Annex 4-B, and Annex 22-A, of the Agreement.
(b) Other Tariff Modifications.--Subject to the
consultation and layover provisions of section 104, the
President may proclaim--
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree to
with Korea regarding the staging of any duty treatment set
forth in Annex 2-B of the Agreement,
(3) such continuation of duty-free or excise treatment, or
(4) such additional duties,
as the President determines to be necessary or appropriate to
maintain the general level of reciprocal and mutually
advantageous concessions with respect to Korea provided for
by the Agreement.
(c) Conversion to Ad Valorem Rates.--For purposes of
subsections (a) and (b), with respect to any good for which
the base rate in the Schedule of the United States to Annex
2-B of the Agreement is a specific or compound rate of duty,
the President may substitute for the base rate an ad valorem
rate that the President determines to be equivalent to the
base rate.
(d) Tariff Treatment of Motor Vehicles.--The President may
proclaim the following tariff treatment with respect to the
following motor vehicles of Korea:
(1) Certain passenger cars.--In the case of originating
goods of Korea classifiable under subheading 8703.10.10,
8703.10.50, 8703.21.00, 8703.22.00, 8703.23.00, 8703.24.00,
8703.31.00, 8703.32.00, or 8703.33.00 of the HTS that are
entered, or withdrawn from warehouse for consumption--
(A) the rate of duty for such goods shall be 2.5 percent
for year 1 of the Agreement through year 4 of the Agreement;
and
(B) such goods shall be free of duty for each year
thereafter.
(2) Electric motor vehicles.--In the case of originating
goods of Korea classifiable under subheading 8703.90.00 of
the HTS that are entered, or withdrawn from warehouse for
consumption--
(A) the rate of duty for such goods shall be--
(i) 2.0 percent for year 1 of the Agreement;
(ii) 1.5 percent for year 2 of the Agreement;
(iii) 1.0 percent for year 3 of the Agreement; and
(iv) 0.5 percent for year 4 of the Agreement; and
(B) such goods shall be free of duty for each year
thereafter.
(3) Certain trucks.--In the case of originating goods of
Korea classifiable under subheading 8704.21.00, 8704.22.50,
8704.23.00, 8704.31.00, 8704.32.00, or 8704.90.00 of the HTS
that are entered, or withdrawn from warehouse for
consumption--
(A) the rate of duty for such goods shall be--
(i) 25 percent for year 1 of the Agreement through year 7
of the Agreement;
(ii) 16.6 percent for year 8 of the Agreement; and
(iii) 8.3 percent for year 9 of the Agreement; and
(B) such goods shall be free of duty for each year
thereafter.
(4) Definitions.--In this subsection--
(A) the term ``year 1 of the Agreement'' means the period
beginning on the date, in a calendar year, on which the
Agreement enters into force and ending on December 31 of that
calendar year; and
(B) the terms ``year 2 of the Agreement'', ``year 3 of the
Agreement'', ``year 4 of the Agreement'', ``year 5 of the
Agreement'', ``year 6 of the Agreement'', ``year 7 of the
Agreement'', ``year 8 of the Agreement'', and ``year 9 of the
Agreement'' mean the second, third, fourth, fifth, sixth,
seventh, eighth, and ninth calendar years, respectively, in
which the Agreement is in force.
SEC. 202. RULES OF ORIGIN.
(a) Application and Interpretation.--In this section:
(1) Tariff classification.--The basis for any tariff
classification is the HTS.
(2) Reference to hts.--Whenever in this section there is a
reference to a chapter, heading, or subheading, such
reference shall be a reference to a chapter, heading, or
subheading of the HTS.
(3) Cost or value.--Any cost or value referred to in this
section shall be recorded and maintained in accordance with
the generally accepted accounting principles applicable in
the territory of the country in which the good is produced
(whether Korea or the United States).
(b) Originating Goods.--For purposes of this Act and for
purposes of implementing the preferential tariff treatment
provided for under the Agreement, except as otherwise
provided in this section, a good is an originating good if--
(1) the good is a good wholly obtained or produced entirely
in the territory of Korea, the United States, or both;
(2) the good--
(A) is produced entirely in the territory of Korea, the
United States, or both, and--
(i) each of the nonoriginating materials used in the
production of the good undergoes an applicable change in
tariff classification specified in Annex 4-A or Annex 6-A of
the Agreement; or
(ii) the good otherwise satisfies any applicable regional
value-content or other requirements specified in Annex 4-A or
Annex 6-A of the Agreement; and
(B) satisfies all other applicable requirements of this
section; or
(3) the good is produced entirely in the territory of
Korea, the United States, or both, exclusively from materials
described in paragraph (1) or (2).
(c) Regional Value-content.--
(1) In general.--For purposes of subsection (b)(2), the
regional value-content of a good referred to in Annex 6-A of
the Agreement, except for goods to which paragraph (4)
applies, shall be calculated by the importer, exporter, or
producer of the good, on the basis of the build-down method
described in paragraph (2) or the build-up method described
in paragraph (3).
(2) Build-down method.--
(A) In general.--The regional value-content of a good may
be calculated on the basis of the following build-down
method:
AV-VNM
RVC = -------------- 100
AV
(B) Definitions.--In subparagraph (A):
(i) RVC.--The term ``RVC'' means the regional value-content
of the good, expressed as a percentage.
(ii) AV.--The term ``AV'' means the adjusted value of the
good.
(iii) VNM.--The term ``VNM'' means the value of
nonoriginating materials, other than indirect materials, that
are acquired and used by the producer in the production of
the good, but does not include the value of a material that
is self-produced.
(3) Build-up method.--
(A) In general.--The regional value-content of a good may
be calculated on the basis of the following build-up method:
VOM
RVC = -------------- 100
AV
(B) Definitions.--In subparagraph (A):
(i) RVC.--The term ``RVC'' means the regional value-content
of the good, expressed as a percentage.
(ii) AV.--The term ``AV'' means the adjusted value of the
good.
(iii) VOM.--The term ``VOM'' means the value of originating
materials, other than indirect materials, that are acquired
or self-produced, and used by the producer in the production
of the good.
(4) Special rule for certain automotive goods.--
(A) In general.--For purposes of subsection (b)(2), the
regional value-content of an automotive good referred to in
Annex 6-A of the Agreement may be calculated by the importer,
exporter, or producer of the good on the basis of the build-
down method described in paragraph (2), the build-up method
described in paragraph (3), or the following net cost method:
NC-VNM
RVC = -------------- 100
NC
(B) Definitions.--In subparagraph (A):
(i) Automotive good.--The term ``automotive good'' means a
good provided for in any of subheadings 8407.31 through
8407.34, subheading 8408.20, heading 8409, or any of headings
8701 through 8708.
(ii) RVC.--The term ``RVC'' means the regional value-
content of the automotive good, expressed as a percentage.
(iii) NC.--The term ``NC'' means the net cost of the
automotive good.
(iv) VNM.--The term ``VNM'' means the value of
nonoriginating materials, other than indirect materials, that
are acquired and used by the producer in the production of
the automotive good, but does not include the value of a
material that is self-produced.
(C) Motor vehicles.--
(i) Basis of calculation.--For purposes of determining the
regional value-content under subparagraph (A) for an
automotive good that is a motor vehicle provided for in any
of headings 8701 through 8705, an importer, exporter, or
producer may average the amounts calculated under the net
cost formula contained in subparagraph (A), over the
producer's fiscal year--
(I) with respect to all motor vehicles in any one of the
categories described in clause (ii); or
(II) with respect to all motor vehicles in any such
category that are exported to the territory of Korea or the
United States.
(ii) Categories.--A category is described in this clause if
it--
(I) is the same model line of motor vehicles, is in the
same class of motor vehicles, and is produced in the same
plant in the territory of Korea or the United States, as the
good described in clause (i) for which regional value-content
is being calculated;
(II) is the same class of motor vehicles, and is produced
in the same plant in the territory of Korea or the United
States, as the
[[Page H6761]]
good described in clause (i) for which regional value-content
is being calculated; or
(III) is the same model line of motor vehicles produced in
the territory of Korea or the United States as the good
described in clause (i) for which regional value-content is
being calculated.
(D) Other automotive goods.--For purposes of determining
the regional value-content under subparagraph (A) for
automotive materials provided for in any of subheadings
8407.31 through 8407.34, in subheading 8408.20, or in heading
8409, 8706, 8707, or 8708, that are produced in the same
plant, an importer, exporter, or producer may--
(i) average the amounts calculated under the net cost
formula contained in subparagraph (A) over--
(I) the fiscal year of the motor vehicle producer to whom
the automotive goods are sold,
(II) any quarter or month, or
(III) the fiscal year of the producer of such goods,
if the goods were produced during the fiscal year, quarter,
or month that is the basis for the calculation;
(ii) determine the average referred to in clause (i)
separately for such goods sold to 1 or more motor vehicle
producers; or
(iii) make a separate determination under clause (i) or
(ii) for such goods that are exported to the territory of
Korea or the United States.
(E) Calculating net cost.--The importer, exporter, or
producer of an automotive good shall, consistent with the
provisions regarding allocation of costs provided for in
generally accepted accounting principles, determine the net
cost of the automotive good under subparagraph (B) by--
(i) calculating the total cost incurred with respect to all
goods produced by the producer of the automotive good,
subtracting any sales promotion, marketing, and after-sales
service costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in the total
cost of all such goods, and then reasonably allocating the
resulting net cost of those goods to the automotive good;
(ii) calculating the total cost incurred with respect to
all goods produced by that producer, reasonably allocating
the total cost to the automotive good, and then subtracting
any sales promotion, marketing, and after-sales service
costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in the portion
of the total cost allocated to the automotive good; or
(iii) reasonably allocating each cost that forms part of
the total cost incurred with respect to the automotive good
so that the aggregate of these costs does not include any
sales promotion, marketing, and after-sales service costs,
royalties, shipping and packing costs, or nonallowable
interest costs.
(d) Value of Materials.--
(1) In general.--For the purpose of calculating the
regional value-content of a good under subsection (c), and
for purposes of applying the de minimis rules under
subsection (f), the value of a material is--
(A) in the case of a material that is imported by the
producer of the good, the adjusted value of the material;
(B) in the case of a material acquired in the territory in
which the good is produced, the value, determined in
accordance with Articles 1 through 8, Article 15, and the
corresponding interpretive notes, of the Agreement on
Implementation of Article VII of the General Agreement on
Tariffs and Trade 1994 referred to in section 101(d)(8) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(8)), as
set forth in regulations promulgated by the Secretary of the
Treasury providing for the application of such Articles in
the absence of an importation by the producer; or
(C) in the case of a material that is self-produced, the
sum of--
(i) all expenses incurred in the production of the
material, including general expenses; and
(ii) an amount for profit equivalent to the profit added in
the normal course of trade.
(2) Further adjustments to the value of materials.--
(A) Originating material.--The following expenses, if not
included in the value of an originating material calculated
under paragraph (1), may be added to the value of the
originating material:
(i) The costs of freight, insurance, packing, and all other
costs incurred in transporting the material within or between
the territory of Korea, the United States, or both, to the
location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of Korea, the United States,
or both, other than duties or taxes that are waived,
refunded, refundable, or otherwise recoverable, including
credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from the use
of the material in the production of the good, less the value
of renewable scrap or byproducts.
(B) Nonoriginating material.--The following expenses, if
included in the value of a nonoriginating material calculated
under paragraph (1), may be deducted from the value of the
nonoriginating material:
(i) The costs of freight, insurance, packing, and all other
costs incurred in transporting the material within or between
the territory of Korea, the United States, or both, to the
location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of Korea, the United States,
or both, other than duties or taxes that are waived,
refunded, refundable, or otherwise recoverable, including
credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from the use
of the material in the production of the good, less the value
of renewable scrap or byproducts.
(iv) The cost of originating materials used in the
production of the nonoriginating material in the territory of
Korea, the United States, or both.
(e) Accumulation.--
(1) Originating materials used in production of goods of
the other country.--Originating materials from the territory
of Korea or the United States that are used in the production
of a good in the territory of the other country shall be
considered to originate in the territory of such other
country.
(2) Multiple producers.--A good that is produced in the
territory of Korea, the United States, or both, by 1 or more
producers, is an originating good if the good satisfies the
requirements of subsection (b) and all other applicable
requirements of this section.
(f) De Minimis Amounts of Nonoriginating Materials.--
(1) In general.--Except as provided in paragraphs (2) and
(3), a good that does not undergo a change in tariff
classification pursuant to Annex 6-A of the Agreement is an
originating good if--
(A) the value of all nonoriginating materials used in the
production of the good that do not undergo the applicable
change in tariff classification (set forth in Annex 6-A of
the Agreement) does not exceed 10 percent of the adjusted
value of the good;
(B) the good meets all other applicable requirements of
this section; and
(C) the value of such nonoriginating materials is included
in the value of nonoriginating materials for any applicable
regional value-content requirement for the good.
(2) Exceptions.--Paragraph (1) does not apply to the
following:
(A) A nonoriginating material provided for in chapter 3
that is used in the production of a good provided for in
chapter 3.
(B) A nonoriginating material provided for in chapter 4, or
a nonoriginating dairy preparation containing over 10 percent
by weight of milk solids provided for in subheading 1901.90
or 2106.90, that is used in the production of a good provided
for in chapter 4.
(C) A nonoriginating material provided for in chapter 4, or
a nonoriginating dairy preparation containing over 10 percent
by weight of milk solids provided for in subheading 1901.90,
that is used in the production of any of the following goods:
(i) Infant preparations containing over 10 percent by
weight of milk solids provided for in subheading 1901.10.
(ii) Mixes and doughs, containing over 25 percent by weight
of butterfat, not put up for retail sale, provided for in
subheading 1901.20.
(iii) Dairy preparations containing over 10 percent by
weight of milk solids provided for in subheading 1901.90 or
2106.90.
(iv) Goods provided for in heading 2105.
(v) Beverages containing milk provided for in subheading
2202.90.
(vi) Animal feeds containing over 10 percent by weight of
milk solids provided for in subheading 2309.90.
(D) A nonoriginating material provided for in chapter 7
that is used in the production of a good provided for in
subheading 0703.10, 0703.20, 0709.59, 0709.60, 0711.90,
0712.20, 0714.20, or any of subheadings 0710.21 through
0710.80 or 0712.39 through 0713.10.
(E) A nonoriginating material provided for in heading 1006,
or a nonoriginating rice product provided for in chapter 11
that is used in the production of a good provided for in
heading 1006, 1102, 1103, 1104, or subheading 1901.20 or
1901.90.
(F) A nonoriginating material provided for in heading 0805,
or any of subheadings 2009.11 through 2009.39, that is used
in the production of a good provided for in any of
subheadings 2009.11 through 2009.39, or in fruit or vegetable
juice of any single fruit or vegetable, fortified with
minerals or vitamins, concentrated or unconcentrated,
provided for in subheading 2106.90 or 2202.90.
(G) Nonoriginating peaches, pears, or apricots provided for
in chapter 8 or 20 that are used in the production of a good
provided for in heading 2008.
(H) A nonoriginating material provided for in chapter 15
that is used in the production of a good provided for in any
of headings 1501 through 1508, or heading 1512, 1514, or
1515.
(I) A nonoriginating material provided for in heading 1701
that is used in the production of a good provided for in any
of headings 1701 through 1703.
(J) A nonoriginating material provided for in chapter 17
that is used in the production of a good provided for in
subheading 1806.10.
(K) Except as provided in subparagraphs (A) through (J) and
Annex 6-A of the Agreement, a nonoriginating material used in
the production of a good provided for in any of chapters 1
through 24, unless the nonoriginating material is provided
for in a different subheading than the good for which origin
is being determined under this section.
(3) Textile or apparel goods.--
(A) In general.--Except as provided in subparagraph (B), a
textile or apparel good that is not an originating good
because certain fibers or yarns used in the production of the
component of the good that determines the tariff
classification of the good do not
[[Page H6762]]
undergo an applicable change in tariff classification, set
forth in Annex 4-A of the Agreement, shall be considered to
be an originating good if the total weight of all such fibers
or yarns in that component is not more than 7 percent of the
total weight of that component.
(B) Certain textile or apparel goods.--A textile or apparel
good containing elastomeric yarns in the component of the
good that determines the tariff classification of the good
shall be considered to be an originating good only if such
yarns are wholly formed and finished in the territory of
Korea, the United States, or both.
(C) Yarn, fabric, or fiber.--For purposes of this
paragraph, in the case of a good that is a yarn, fabric, or
fiber, the term ``component of the good that determines the
tariff classification of the good'' means all of the fibers
in the good.
(g) Fungible Goods and Materials.--
(1) In general.--
(A) Claim for preferential tariff treatment.--A person
claiming that a fungible good or fungible material is an
originating good may base the claim either on the physical
segregation of the fungible good or fungible material or by
using an inventory management method with respect to the
fungible good or fungible material.
(B) Inventory management method.--In this subsection, the
term ``inventory management method'' means--
(i) averaging;
(ii) ``last-in, first-out'';
(iii) ``first-in, first-out''; or
(iv) any other method--
(I) recognized in the generally accepted accounting
principles of the country in which the production is
performed (whether Korea or the United States); or
(II) otherwise accepted by that country.
(2) Election of inventory method.--A person selecting an
inventory management method under paragraph (1) for a
particular fungible good or fungible material shall continue
to use that method for that fungible good or fungible
material throughout the fiscal year of such person.
(h) Accessories, Spare Parts, or Tools.--
(1) In general.--Subject to paragraphs (2) and (3),
accessories, spare parts, or tools delivered with a good that
form part of the good's standard accessories, spare parts, or
tools shall--
(A) be treated as originating goods if the good is an
originating good; and
(B) be disregarded in determining whether all the
nonoriginating materials used in the production of the good
undergo the applicable change in tariff classification set
forth in Annex 6-A of the Agreement.
(2) Conditions.--Paragraph (1) shall apply only if--
(A) the accessories, spare parts, or tools are classified
with and not invoiced separately from the good; and
(B) the quantities and value of the accessories, spare
parts, or tools are customary for the good.
(3) Regional value content.--If the good is subject to a
regional value-content requirement, the value of the
accessories, spare parts, or tools shall be taken into
account as originating or nonoriginating materials, as the
case may be, in calculating the regional value-content of the
good.
(i) Packaging Materials and Containers for Retail Sale.--
Packaging materials and containers in which a good is
packaged for retail sale, if classified with the good, shall
be disregarded in determining whether all the nonoriginating
materials used in the production of the good undergo the
applicable change in tariff classification set forth in Annex
4-A or Annex 6-A of the Agreement, and, if the good is
subject to a regional value-content requirement, the value of
such packaging materials and containers shall be taken into
account as originating or nonoriginating materials, as the
case may be, in calculating the regional value-content of the
good.
(j) Packing Materials and Containers for Shipment.--Packing
materials and containers for shipment shall be disregarded in
determining whether a good is an originating good.
(k) Indirect Materials.--An indirect material shall be
disregarded in determining whether a good is an originating
good.
(l) Transit and Transhipment.--A good that has undergone
production necessary to qualify as an originating good under
subsection (b) shall not be considered to be an originating
good if, subsequent to that production, the good--
(1) undergoes further production or any other operation
outside the territory of Korea or the United States, other
than unloading, reloading, or any other operation necessary
to preserve the good in good condition or to transport the
good to the territory of Korea or the United States; or
(2) does not remain under the control of customs
authorities in the territory of a country other than Korea or
the United States.
(m) Goods Classifiable as Goods Put up in Sets.--
Notwithstanding the rules set forth in Annex 4-A and Annex 6-
A of the Agreement, goods classifiable as goods put up in
sets for retail sale as provided for in General Rule of
Interpretation 3 of the HTS shall not be considered to be
originating goods unless--
(1) each of the goods in the set is an originating good; or
(2) the total value of the nonoriginating goods in the set
does not exceed--
(A) in the case of textile or apparel goods, 10 percent of
the adjusted value of the set; or
(B) in the case of goods, other than textile or apparel
goods, 15 percent of the adjusted value of the set.
(n) Definitions.--In this section:
(1) Adjusted value.--The term ``adjusted value'' means the
value determined in accordance with Articles 1 through 8,
Article 15, and the corresponding interpretive notes, of the
Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 referred to in section
101(d)(8) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(8)), adjusted, if necessary, to exclude any costs,
charges, or expenses incurred for transportation, insurance,
and related services incident to the international shipment
of the merchandise from the country of exportation to the
place of importation.
(2) Class of motor vehicles.--The term ``class of motor
vehicles'' means any one of the following categories of motor
vehicles:
(A) Motor vehicles provided for in subheading 8701.20,
8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading
8705 or 8706, or motor vehicles for the transport of 16 or
more persons provided for in subheading 8702.10 or 8702.90.
(B) Motor vehicles provided for in subheading 8701.10 or
any of subheadings 8701.30 through 8701.90.
(C) Motor vehicles for the transport of 15 or fewer persons
provided for in subheading 8702.10 or 8702.90, or motor
vehicles provided for in subheading 8704.21 or 8704.31.
(D) Motor vehicles provided for in any of subheadings
8703.21 through 8703.90.
(3) Fungible good or fungible material.--The term
``fungible good'' or ``fungible material'' means a good or
material, as the case may be, that is interchangeable with
another good or material for commercial purposes and the
properties of which are essentially identical to such other
good or material.
(4) Generally accepted accounting principles.--The term
``generally accepted accounting principles''--
(A) means the recognized consensus or substantial
authoritative support given in the territory of Korea or the
United States, as the case may be, with respect to the
recording of revenues, expenses, costs, assets, and
liabilities, the disclosure of information, and the
preparation of financial statements; and
(B) may encompass broad guidelines for general application
as well as detailed standards, practices, and procedures.
(5) Good wholly obtained or produced entirely in the
territory of korea, the united states, or both.--The term
``good wholly obtained or produced entirely in the territory
of Korea, the United States, or both'' means any of the
following:
(A) Plants and plant products grown, and harvested or
gathered, in the territory of Korea, the United States, or
both.
(B) Live animals born and raised in the territory of Korea,
the United States, or both.
(C) Goods obtained in the territory of Korea, the United
States, or both from live animals.
(D) Goods obtained from hunting, trapping, fishing, or
aquaculture conducted in the territory of Korea, the United
States, or both.
(E) Minerals and other natural resources not included in
subparagraphs (A) through (D) that are extracted or taken
from the territory of Korea, the United States, or both.
(F) Fish, shellfish, and other marine life taken from the
sea, seabed, or subsoil outside the territory of Korea or the
United States by--
(i) a vessel that is registered or recorded with Korea and
flying the flag of Korea; or
(ii) a vessel that is documented under the laws of the
United States.
(G) Goods produced on board a factory ship from goods
referred to in subparagraph (F), if such factory ship--
(i) is registered or recorded with Korea and flies the flag
of Korea; or
(ii) is a vessel that is documented under the laws of the
United States.
(H)(i) Goods taken by Korea or a person of Korea from the
seabed or subsoil outside the territory of Korea, the United
States, or both, if Korea has rights to exploit such seabed
or subsoil; or
(ii) Goods taken by the United States or a person of the
United States from the seabed or subsoil outside the
territory of the United States, Korea, or both, if the United
States has rights to exploit such seabed or subsoil.
(I) Goods taken from outer space, if the goods are obtained
by Korea or the United States or a person of Korea or the
United States and not processed in the territory of a country
other than Korea or the United States.
(J) Waste and scrap derived from--
(i) manufacturing or processing operations in the territory
of Korea, the United States, or both; or
(ii) used goods collected in the territory of Korea, the
United States, or both, if such goods are fit only for the
recovery of raw materials.
(K) Recovered goods derived in the territory of Korea, the
United States, or both, from used goods, and used in the
territory of Korea, the United States, or both, in the
production of remanufactured goods.
(L) Goods, at any stage of production, produced in the
territory of Korea, the United States, or both, exclusively
from--
(i) goods referred to in any of subparagraphs (A) through
(J); or
(ii) the derivatives of goods referred to in clause (i).
[[Page H6763]]
(6) Identical goods.--The term ``identical goods'' means
goods that are the same in all respects relevant to the rule
of origin that qualifies the goods as originating goods.
(7) Indirect material.--The term ``indirect material''
means a good used in the production, testing, or inspection
of another good but not physically incorporated into that
other good, or a good used in the maintenance of buildings or
the operation of equipment associated with the production of
another good, including--
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the maintenance of
equipment or buildings;
(D) lubricants, greases, compounding materials, and other
materials used in production or used to operate equipment or
buildings;
(E) gloves, glasses, footwear, clothing, safety equipment,
and supplies;
(F) equipment, devices, and supplies used for testing or
inspecting the good;
(G) catalysts and solvents; and
(H) any other good that is not incorporated into the other
good but the use of which in the production of the other good
can reasonably be demonstrated to be a part of that
production.
(8) Material.--The term ``material'' means a good that is
used in the production of another good, including a part or
an ingredient.
(9) Material that is self-produced.--The term ``material
that is self-produced'' means an originating material that is
produced by a producer of a good and used in the production
of that good.
(10) Model line of motor vehicles.--The term ``model line
of motor vehicles'' means a group of motor vehicles having
the same platform or model name.
(11) Net cost.--The term ``net cost'' means total cost
minus sales promotion, marketing, and after-sales service
costs, royalties, shipping and packing costs, and non-
allowable interest costs that are included in the total cost.
(12) Nonallowable interest costs.--The term ``nonallowable
interest costs'' means interest costs incurred by a producer
that exceed 700 basis points above the applicable official
interest rate for comparable maturities of the country in
which the producer is located.
(13) Nonoriginating good or nonoriginating material.--The
term ``nonoriginating good'' or ``nonoriginating material''
means a good or material, as the case may be, that does not
qualify as originating under this section.
(14) Packing materials and containers for shipment.--The
term ``packing materials and containers for shipment'' means
goods used to protect another good during its transportation
and does not include the packaging materials and containers
in which the other good is packaged for retail sale.
(15) Preferential tariff treatment.--The term
``preferential tariff treatment'' means the customs duty
rate, and the treatment under article 2.10.4 of the
Agreement, that are applicable to an originating good
pursuant to the Agreement.
(16) Producer.--The term ``producer'' means a person who
engages in the production of a good in the territory of Korea
or the United States.
(17) Production.--The term ``production'' means growing,
mining, harvesting, fishing, breeding, raising, trapping,
hunting, manufacturing, processing, assembling, or
disassembling a good.
(18) Reasonably allocate.--The term ``reasonably allocate''
means to apportion in a manner that would be appropriate
under generally accepted accounting principles.
(19) Recovered goods.--The term ``recovered goods'' means
materials in the form of individual parts that are the result
of--
(A) the disassembly of used goods into individual parts;
and
(B) the cleaning, inspecting, testing, or other processing
that is necessary for improvement to sound working condition
of such individual parts.
(20) Remanufactured good.--The term ``remanufactured good''
means a good that is classified under chapter 84, 85, 87, or
90 or heading 9402, and that--
(A) is entirely or partially comprised of recovered goods;
and
(B) has a similar life expectancy and enjoys a factory
warranty similar to such a good that is new.
(21) Total cost.--
(A) In general.--The term ``total cost''--
(i) means all product costs, period costs, and other costs
for a good incurred in the territory of Korea, the United
States, or both; and
(ii) does not include profits that are earned by the
producer, regardless of whether they are retained by the
producer or paid out to other persons as dividends, or taxes
paid on those profits, including capital gains taxes.
(B) Other definitions.--In this paragraph:
(i) Product costs.--The term ``product costs'' means costs
that are associated with the production of a good and include
the value of materials, direct labor costs, and direct
overhead.
(ii) Period costs.--The term ``period costs'' means costs,
other than product costs, that are expensed in the period in
which they are incurred, such as selling expenses and general
and administrative expenses.
(iii) Other costs.--The term ``other costs'' means all
costs recorded on the books of the producer that are not
product costs or period costs, such as interest.
(22) Used.--The term ``used'' means utilized or consumed in
the production of goods.
(o) Presidential Proclamation Authority.--
(1) In general.--The President is authorized to proclaim,
as part of the HTS--
(A) the provisions set forth in Annex 4-A and Annex 6-A of
the Agreement; and
(B) any additional subordinate category that is necessary
to carry out this title consistent with the Agreement.
(2) Modifications.--
(A) In general.--Subject to the consultation and layover
provisions of section 104, the President may proclaim
modifications to the provisions proclaimed under the
authority of paragraph (1)(A), other than provisions of
chapters 50 through 63 (as included in Annex 4-A of the
Agreement).
(B) Additional proclamations.--Notwithstanding subparagraph
(A), and subject to the consultation and layover provisions
of section 104, the President may proclaim--
(i) such modifications to the provisions proclaimed under
the authority of paragraph (1)(A) as are necessary to
implement an agreement with Korea pursuant to article 4.2.5
of the Agreement; and
(ii) before the end of the 1-year period beginning on the
date on which the Agreement enters into force, modifications
to correct any typographical, clerical, or other
nonsubstantive technical error regarding the provisions of
chapters 50 through 63 (as included in Annex 4-A of the
Agreement).
(3) Fibers, yarns, or fabrics not available in commercial
quantities in the united states.--
(A) In general.--Notwithstanding paragraph (2)(A), the list
of fibers, yarns, and fabrics set forth in the list of the
United States in Appendix 4-B-1 of the Agreement may be
modified as provided for in this paragraph.
(B) Definitions.--In this paragraph:
(i) Interested entity.--The term ``interested entity''
means the Government of Korea, a potential or actual
purchaser of a textile or apparel good, or a potential or
actual supplier of a textile or apparel good.
(ii) Day; days.--All references to ``day'' and ``days''
exclude Saturdays, Sundays, and legal holidays observed by
the Government of the United States.
(C) Requests to add fibers, yarns, or fabrics.--
(i) In general.--An interested entity may request the
President to determine that a fiber, yarn, or fabric is not
available in commercial quantities in a timely manner in the
United States and to add that fiber, yarn, or fabric to the
list of the United States in Appendix 4-B-1 of the Agreement.
(ii) Determination.--After receiving a request under clause
(i), the President may determine whether--
(I) the fiber, yarn, or fabric is available in commercial
quantities in a timely manner in the United States; or
(II) any interested entity objects to the request.
(iii) Proclamation authority.--The President may, within
the time periods specified in clause (iv), proclaim that the
fiber, yarn, or fabric that is the subject of the request is
added to the list of the United States in Appendix 4-B-1 of
the Agreement, if the President has determined under clause
(ii) that--
(I) the fiber, yarn, or fabric is not available in
commercial quantities in a timely manner in the United
States; or
(II) no interested entity has objected to the request.
(iv) Time periods.--The time periods within which the
President may issue a proclamation under clause (iii) are--
(I) not later than 30 days after the date on which a
request is submitted under clause (i); or
(II) not later than 60 days after the request is submitted,
if the President determines, within 30 days after the date on
which the request is submitted, that the President does not
have sufficient information to make a determination under
clause (ii).
(v) Effective date.--Notwithstanding section 103(a)(2), a
proclamation made under clause (iii) shall take effect on the
date on which the text of the proclamation is published in
the Federal Register.
(D) Deemed denial of request.--If, after an interested
entity submits a request under subparagraph (C)(i), the
President does not, within 30 days of the expiration of the
applicable time period specified in subparagraph (C)(iv),
make a determination under subparagraph (C)(ii) regarding the
request, the request shall be considered to be denied.
(E) Requests to remove fibers, yarns, or fabrics.--
(i) In general.--An interested entity may request the
President to remove from the list of the United States in
Appendix 4-B-1 of the Agreement, any fiber, yarn, or fabric
that has been added to that list pursuant to subparagraph
(C)(iii).
(ii) Proclamation authority.--Not later than 30 days after
the date on which a request under clause (i) is submitted,
the President may proclaim that the fiber, yarn, or fabric
that is the subject of the request is removed from the list
of the United States in Appendix 4-B-1 of the Agreement if
the President determines that the fiber, yarn, or fabric is
available in commercial quantities in a timely manner in the
United States.
(iii) Effective date.--A proclamation issued under clause
(ii) may not take effect earlier than the date that is 6
months after the date on which the text of the proclamation
is published in the Federal Register.
[[Page H6764]]
(F) Procedures.--The President shall establish procedures--
(i) governing the submission of a request under
subparagraphs (C) and (E); and
(ii) providing an opportunity for interested entities to
submit comments and supporting evidence before the President
makes a determination under subparagraph (C)(ii) or (E)(ii).
SEC. 203. CUSTOMS USER FEES.
Section 13031(b) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is amended by
adding after paragraph (18) the following:
``(19) No fee may be charged under subsection (a) (9) or
(10) with respect to goods that qualify as originating goods
under section 202 of the United States-Korea Free Trade
Agreement Implementation Act. Any service for which an
exemption from such fee is provided by reason of this
paragraph may not be funded with money contained in the
Customs User Fee Account.''.
SEC. 204. DISCLOSURE OF INCORRECT INFORMATION; FALSE
CERTIFICATIONS OF ORIGIN; DENIAL OF
PREFERENTIAL TARIFF TREATMENT.
(a) Disclosure of Incorrect Information.--Section 592 of
the Tariff Act of 1930 (19 U.S.C. 1592) is amended--
(1) in subsection (c)--
(A) by redesignating paragraph (11) as paragraph (12); and
(B) by inserting after paragraph (10) the following new
paragraph:
``(11) Prior disclosure regarding claims under the united
states-korea free trade agreement.--An importer shall not be
subject to penalties under subsection (a) for making an
incorrect claim that a good qualifies as an originating good
under section 202 of the United States-Korea Free Trade
Agreement Implementation Act if the importer, in accordance
with regulations issued by the Secretary of the Treasury,
promptly and voluntarily makes a corrected declaration and
pays any duties owing with respect to that good.''; and
(2) by adding at the end the following new subsection:
``(j) False Certifications of Origin Under the United
States-Korea Free Trade Agreement.--
``(1) In general.--Subject to paragraph (2), it is unlawful
for any person to certify falsely, by fraud, gross
negligence, or negligence, in a KFTA certification of origin
(as defined in section 508 of this Act) that a good exported
from the United States qualifies as an originating good under
the rules of origin provided for in section 202 of the United
States-Korea Free Trade Agreement Implementation Act. The
procedures and penalties of this section that apply to a
violation of subsection (a) also apply to a violation of this
subsection.
``(2) Prompt and voluntary disclosure of incorrect
information.--No penalty shall be imposed under this
subsection if, promptly after an exporter or producer that
issued a KFTA certification of origin has reason to believe
that such certification contains or is based on incorrect
information, the exporter or producer voluntarily provides
written notice of such incorrect information to every person
to whom the certification was issued.
``(3) Exception.--A person shall not be considered to have
violated paragraph (1) if--
``(A) the information was correct at the time it was
provided in a KFTA certification of origin but was later
rendered incorrect due to a change in circumstances; and
``(B) the person promptly and voluntarily provides written
notice of the change in circumstances to all persons to whom
the person provided the certification.''.
(b) Denial of Preferential Tariff Treatment.--Section 514
of the Tariff Act of 1930 (19 U.S.C. 1514) is amended by
adding at the end the following new subsection:
``(j) Denial of Preferential Tariff Treatment Under the
United States-Korea Free Trade Agreement.--If U.S. Customs
and Border Protection or U.S. Immigration and Customs
Enforcement of the Department of Homeland Security finds
indications of a pattern of conduct by an importer, exporter,
or producer of false or unsupported representations that
goods qualify under the rules of origin provided for in
section 202 of the United States-Korea Free Trade Agreement
Implementation Act, U.S. Customs and Border Protection, in
accordance with regulations issued by the Secretary of the
Treasury, may suspend preferential tariff treatment under the
United States-Korea Free Trade Agreement Implementation Act
to entries of identical goods covered by subsequent
representations by that importer, exporter, or producer until
U.S. Customs and Border Protection determines that
representations of that person are in conformity with such
section 202.''.
SEC. 205. RELIQUIDATION OF ENTRIES.
Section 520(d) of the Tariff Act of 1930 (19 U.S.C.
1520(d)) is amended in the matter preceding paragraph (1)--
(1) by striking ``or''; and
(2) by striking ``for which'' and inserting ``, or section
202 of the United States-Korea Free Trade Agreement
Implementation Act for which''.
SEC. 206. RECORDKEEPING REQUIREMENTS.
Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is
amended--
(1) by redesignating subsection (i) as subsection (j);
(2) by inserting after subsection (h) the following new
subsection:
``(i) Certifications of Origin for Goods Exported Under the
United States-Korea Free Trade Agreement.--
``(1) Definitions.--In this subsection:
``(A) Records and supporting documents.--The term `records
and supporting documents' means, with respect to an exported
good under paragraph (2), records and documents related to
the origin of the good, including--
``(i) the purchase, cost, and value of, and payment for,
the good;
``(ii) the purchase, cost, and value of, and payment for,
all materials, including indirect materials, used in the
production of the good; and
``(iii) the production of the good in the form in which it
was exported.
``(B) KFTA certification of origin.--The term `KFTA
certification of origin' means the certification established
under article 6.15 of the United States-Korea Free Trade
Agreement that a good qualifies as an originating good under
such Agreement.
``(2) Exports to korea.--Any person who completes and
issues a KFTA certification of origin for a good exported
from the United States shall make, keep, and, pursuant to
rules and regulations promulgated by the Secretary of the
Treasury, render for examination and inspection all records
and supporting documents related to the origin of the good
(including the certification or copies thereof).
``(3) Retention period.--The person who issues a KFTA
certification of origin shall keep the records and supporting
documents relating to that certification of origin for a
period of at least 5 years after the date on which the
certification is issued.''; and
(3) in subsection (j), as so redesignated, by striking
``(g), or (h)'' and inserting ``(g), (h), or (i)''.
SEC. 207. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL
GOODS.
(a) Action During Verification.--
(1) In general.--If the Secretary of the Treasury requests
the Government of Korea to conduct a verification pursuant to
article 4.3 of the Agreement for purposes of making a
determination under paragraph (2), the President may direct
the Secretary to take appropriate action described in
subsection (b) while the verification is being conducted.
(2) Determination.--A determination under this paragraph is
a determination of the Secretary that--
(A) an exporter or producer in Korea is complying with
applicable customs laws, regulations, procedures,
requirements, and practices affecting trade in textile or
apparel goods; or
(B) a claim that a textile or apparel good exported or
produced by such exporter or producer--
(i) qualifies as an originating good under section 202, or
(ii) is a good of Korea,
is accurate.
(b) Appropriate Action Described.--Appropriate action under
subsection (a)(1) includes--
(1) suspension of liquidation of the entry of any textile
or apparel good exported or produced by the person that is
the subject of a verification under subsection (a)(1)
regarding compliance described in subsection (a)(2)(A), in a
case in which the request for verification was based on a
reasonable suspicion of unlawful activity related to such
goods; and
(2) suspension of liquidation of the entry of a textile or
apparel good for which a claim has been made that is the
subject of a verification under subsection (a)(1) regarding a
claim described in subsection (a)(2)(B).
(c) Action When Information Is Insufficient.--If the
Secretary of the Treasury determines that the information
obtained within 12 months after making a request for a
verification under subsection (a)(1) is insufficient to make
a determination under subsection (a)(2), the President may
direct the Secretary to take appropriate action described in
subsection (d) until such time as the Secretary receives
information sufficient to make the determination under
subsection (a)(2) or until such earlier date as the President
may direct.
(d) Appropriate Action Described.--Appropriate action under
subsection (c) includes--
(1) denial of preferential tariff treatment under the
Agreement with respect to--
(A) any textile or apparel good exported or produced by the
person that is the subject of a verification under subsection
(a)(1) regarding compliance described in subsection
(a)(2)(A); or
(B) the textile or apparel good for which a claim has been
made that is the subject of a verification under subsection
(a)(1) regarding a claim described in subsection (a)(2)(B);
and
(2) denial of entry into the United States of--
(A) any textile or apparel good exported or produced by the
person that is the subject of a verification under subsection
(a)(1) regarding compliance described in subsection
(a)(2)(A); or
(B) a textile or apparel good for which a claim has been
made that is the subject of a verification under subsection
(a)(1) regarding a claim described in subsection (a)(2)(B).
(e) Publication of Name of Person.--In accordance with
article 4.3.11 of the Agreement, the Secretary of the
Treasury may publish the name of any person that the
Secretary has determined--
(1) is engaged in circumvention of applicable laws,
regulations, or procedures affecting trade in textile or
apparel goods; or
[[Page H6765]]
(2) has failed to demonstrate that it produces, or is
capable of producing, textile or apparel goods.
(f) Certificate of Eligibility.--The Commissioner
responsible for U.S. Customs and Border Protection of the
Department of Homeland Security may require an importer to
submit at the time the importer files a claim for
preferential tariff treatment under Annex 4-B of the
Agreement a certificate of eligibility, properly completed
and signed by an authorized official of the Government of
Korea.
(g) Verifications in the United States.--If the government
of a country that is a party to a free trade agreement with
the United States makes a request for a verification pursuant
to that agreement, the Secretary of the Treasury may request
a verification of the production of any textile or apparel
good in order to assist that government in determining
whether--
(1) a claim of origin under the agreement for a textile or
apparel good is accurate; or
(2) an exporter, producer, or other enterprise located in
the United States involved in the movement of textile or
apparel goods from the United States to the territory of the
requesting government is complying with applicable customs
laws, regulations, and procedures regarding trade in textile
or apparel goods.
SEC. 208. REGULATIONS.
The Secretary of the Treasury shall prescribe such
regulations as may be necessary to carry out--
(1) subsections (a) through (n) of section 202;
(2) the amendment made by section 203; and
(3) any proclamation issued under section 202(o).
TITLE III--RELIEF FROM IMPORTS
SEC. 301. DEFINITIONS.
In this title:
(1) Korean article.--The term ``Korean article'' means an
article that qualifies as an originating good under section
202(b).
(2) Korean motor vehicle article.--The term ``Korean motor
vehicle article'' means a good provided for in heading 8703
or 8704 of the HTS that qualifies as an originating good
under section 202(b).
(3) Korean textile or apparel article.--The term ``Korean
textile or apparel article'' means a textile or apparel good
(as defined in section 3(5)) that is a Korean article.
Subtitle A--Relief From Imports Benefitting From the Agreement
SEC. 311. COMMENCING OF ACTION FOR RELIEF.
(a) Filing of Petition.--
(1) In general.--A petition requesting action under this
subtitle for the purpose of adjusting to the obligations of
the United States under the Agreement may be filed with the
Commission by an entity, including a trade association, firm,
certified or recognized union, or group of workers, that is
representative of an industry. The Commission shall transmit
a copy of any petition filed under this subsection to the
United States Trade Representative.
(2) Provisional relief.--An entity filing a petition under
this subsection may request that provisional relief be
provided as if the petition had been filed under section
202(a) of the Trade Act of 1974 (19 U.S.C. 2252(a)).
(3) Critical circumstances.--Any allegation that critical
circumstances exist shall be included in the petition.
(b) Investigation and Determination.--Upon the filing of a
petition under subsection (a), the Commission, unless
subsection (d) applies, shall promptly initiate an
investigation to determine whether, as a result of the
reduction or elimination of a duty provided for under the
Agreement, a Korean article is being imported into the United
States in such increased quantities, in absolute terms or
relative to domestic production, and under such conditions
that imports of the Korean article constitute a substantial
cause of serious injury or threat thereof to the domestic
industry producing an article that is like, or directly
competitive with, the imported article.
(c) Applicable Provisions.--The following provisions of
section 202 of the Trade Act of 1974 (19 U.S.C. 2252) apply
with respect to any investigation initiated under subsection
(b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(2) Subsection (c).
(3) Subsection (d).
(4) Subsection (i).
(d) Articles Exempt From Investigation.--No investigation
may be initiated under this section with respect to any
Korean article if, after the date on which the Agreement
enters into force, import relief has been provided with
respect to that Korean article under this subtitle.
SEC. 312. COMMISSION ACTION ON PETITION.
(a) Determination.--Not later than 120 days (180 days if
critical circumstances have been alleged) after the date on
which an investigation is initiated under section 311(b) with
respect to a petition, the Commission shall make the
determination required under that section.
(b) Applicable Provisions.--For purposes of this subtitle,
the provisions of paragraphs (1), (2), and (3) of section
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2),
and (3)) shall be applied with respect to determinations and
findings made under this section as if such determinations
and findings were made under section 202 of the Trade Act of
1974 (19 U.S.C. 2252).
(c) Additional Finding and Recommendation if Determination
Affirmative.--
(1) In general.--If the determination made by the
Commission under subsection (a) with respect to imports of an
article is affirmative, or if the President may consider a
determination of the Commission to be an affirmative
determination as provided for under paragraph (1) of section
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the
Commission shall find, and recommend to the President in the
report required under subsection (d), the amount of import
relief that is necessary to remedy or prevent the injury
found by the Commission in the determination and to
facilitate the efforts of the domestic industry to make a
positive adjustment to import competition.
(2) Limitation on relief.--The import relief recommended by
the Commission under this subsection shall be limited to the
relief described in section 313(c).
(3) Voting; separate views.--Only those members of the
Commission who voted in the affirmative under subsection (a)
are eligible to vote on the proposed action to remedy or
prevent the injury found by the Commission. Members of the
Commission who did not vote in the affirmative may submit, in
the report required under subsection (d), separate views
regarding what action, if any, should be taken to remedy or
prevent the injury.
(d) Report to President.--Not later than the date that is
30 days after the date on which a determination is made under
subsection (a) with respect to an investigation, the
Commission shall submit to the President a report that
includes--
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is
affirmative, any findings and recommendations for import
relief made under subsection (c) and an explanation of the
basis for each recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination referred to in
paragraph (1) and any finding or recommendation referred to
in paragraph (2).
(e) Public Notice.--Upon submitting a report to the
President under subsection (d), the Commission shall promptly
make public the report (with the exception of information
which the Commission determines to be confidential) and shall
publish a summary of the report in the Federal Register.
SEC. 313. PROVISION OF RELIEF.
(a) In General.--Not later than the date that is 30 days
after the date on which the President receives a report of
the Commission in which the Commission's determination under
section 312(a) is affirmative, or which contains a
determination under section 312(a) that the President
considers to be affirmative under paragraph (1) of section
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the
President, subject to subsection (b), shall provide relief
from imports of the article that is the subject of such
determination to the extent that the President determines
necessary to remedy or prevent the injury found by the
Commission and to facilitate the efforts of the domestic
industry to make a positive adjustment to import competition.
(b) Exception.--The President is not required to provide
import relief under this section if the President determines
that the provision of the import relief will not provide
greater economic and social benefits than costs.
(c) Nature of Relief.--
(1) In general.--Except as provided in paragraph (2), the
import relief that the President is authorized to provide
under this section with respect to imports of an article is
as follows:
(A) The suspension of any further reduction provided for
under Annex 2-B of the Agreement in the duty imposed on the
article.
(B) An increase in the rate of duty imposed on the article
to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed under the HTS
on like articles at the time the import relief is provided;
or
(ii) the column 1 general rate of duty imposed under the
HTS on like articles on the day before the date on which the
Agreement enters into force.
(2) Duties applied on a seasonal basis.--In the case of
imports of an article to which a duty is applied on a
seasonal basis, the import relief that the President is
authorized to provide under this section is as follows:
(A) The suspension of any further reduction provided for
under Annex 2-B of the Agreement in the duty imposed on the
article.
(B) An increase in the rate of duty imposed on the article
to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed under the HTS
on like articles for the corresponding season immediately
preceding the date the import relief is provided; or
(ii) the column 1 general rate of duty imposed under the
HTS for the corresponding season immediately preceding the
date on which the Agreement enters into force.
(3) Progressive liberalization.--If the period for which
import relief is provided under this section is greater than
1 year, the President shall provide for the progressive
liberalization (described in article 10.2.7 of the Agreement)
of such relief at regular intervals during the period of its
application.
[[Page H6766]]
(d) Period of Relief.--
(1) In general.--Subject to paragraph (2), any import
relief that the President provides under this section may not
be in effect for more than 2 years.
(2) Extension.--
(A) In general.--Subject to subparagraph (C), the
President, after receiving a determination from the
Commission under subparagraph (B) that is affirmative, or
which the President considers to be affirmative under
paragraph (1) of section 330(d) of the Tariff Act of 1930 (19
U.S.C. 1330(d)(1)), may extend the effective period of any
import relief provided under this section by up to 1 year, if
the President determines that--
(i) the import relief continues to be necessary to remedy
or prevent serious injury and to facilitate adjustment by the
domestic industry to import competition; and
(ii) there is evidence that the industry is making a
positive adjustment to import competition.
(B) Action by commission.--
(i) Investigation.--Upon a petition on behalf of the
industry concerned that is filed with the Commission not
earlier than the date that is 9 months, and not later than
the date that is 6 months, before the date on which any
action taken under subsection (a) is to terminate, the
Commission shall conduct an investigation to determine
whether action under this section continues to be necessary
to remedy or prevent serious injury and whether there is
evidence that the industry is making a positive adjustment to
import competition.
(ii) Notice and hearing.--The Commission shall publish
notice of the commencement of any proceeding under this
subparagraph in the Federal Register and shall, within a
reasonable time thereafter, hold a public hearing at which
the Commission shall afford interested parties and consumers
an opportunity to be present, to present evidence, and to
respond to the presentations of other parties and consumers,
and otherwise to be heard.
(iii) Report.--The Commission shall submit to the President
a report on its investigation and determination under this
subparagraph not later than 60 days before the action under
subsection (a) is to terminate, unless the President
specifies a different date.
(C) Period of import relief.--Any import relief provided
under this section, including any extensions thereof, may
not, in the aggregate, be in effect for more than 3 years.
(e) Rate After Termination of Import Relief.--Beginning on
the date on which import relief under this section is
terminated with respect to an article, the rate of duty on
that article shall be the rate that would have been in effect
but for the provision of such relief.
(f) Articles Exempt From Relief.--No import relief may be
provided under this section on any article that is subject to
import relief under--
(1) subtitle B or C; or
(2) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
SEC. 314. TERMINATION OF RELIEF AUTHORITY.
(a) General Rule.--Subject to subsection (b), no import
relief may be provided under this subtitle after the date
that is 10 years after the date on which the Agreement enters
into force.
(b) Exception.--If an article for which relief is provided
under this subtitle is an article for which the period for
tariff elimination, set forth in the Schedule of the United
States to Annex 2-B of the Agreement, is greater than 10
years, no relief under this subtitle may be provided for that
article after the date on which that period ends.
(c) Presidential Determination.--Import relief may be
provided under this subtitle in the case of a Korean article
after the date on which such relief would, but for this
subsection, terminate under subsection (a) and (b), if the
President determines that Korea has consented to such relief.
SEC. 315. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President
under section 313 shall be treated as action taken under
chapter 1 of title II of such Act (19 U.S.C. 2251 et seq.).
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C.
2252(a)(8)) is amended in the first sentence--
(1) by striking ``and''; and
(2) by inserting before the period at the end ``, and title
III of the United States-Korea Free Trade Agreement
Implementation Act''.
Subtitle B--Motor Vehicle Safeguard Measures
SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES.
The provisions of subtitle A shall apply with respect to a
Korean motor vehicle article to the same extent that such
provisions apply to Korean articles, except as follows:
(1) Section 311(d) and paragraphs (2) and (3) of 313(c)
shall not apply.
(2) Section 313(d)(2)(A) shall be applied and administered
by substituting ``2 years'' for ``1 year''.
(3) Section 313(d)(2)(C) shall be applied and administered
by substituting ``4 years'' for ``3 years''.
(4) Section 313(f)(1) shall be applied and administered by
substituting ``subtitle A'' for ``subtitle B or C''.
(5) Section 314(b) shall be applied and administered as if
such section read as follows:
``(b) Exception.--Import relief may be provided under this
subtitle with respect to a Korean motor vehicle article
during any period before the date that is 10 years after the
date on which duties on the article are eliminated, as set
forth in section 201(d), or, if the article is not referred
to in section 201(d), the Schedule of the United States to
Annex 2-B of the Agreement.''.
Subtitle C--Textile and Apparel Safeguard Measures
SEC. 331. COMMENCEMENT OF ACTION FOR RELIEF.
(a) In General.--A request for action under this subtitle
for the purpose of adjusting to the obligations of the United
States under the Agreement may be filed with the President by
an interested party. Upon the filing of a request, the
President shall review the request to determine, from
information presented in the request, whether to commence
consideration of the request.
(b) Publication of Request.--If the President determines
that the request under subsection (a) provides the
information necessary for the request to be considered, the
President shall publish in the Federal Register a notice of
commencement of consideration of the request, and notice
seeking public comments regarding the request. The notice
shall include a summary of the request and the dates by which
comments and rebuttals must be received.
SEC. 332. DETERMINATION AND PROVISION OF RELIEF.
(a) Determination.--
(1) In general.--If a positive determination is made under
section 331(b), the President shall determine whether, as a
result of the reduction or elimination of a duty under the
Agreement, a Korean textile or apparel article is being
imported into the United States in such increased quantities,
in absolute terms or relative to the domestic market for that
article, and under such conditions as to cause serious
damage, or actual threat thereof, to a domestic industry
producing an article that is like, or directly competitive
with, the imported article.
(2) Serious damage.--In making a determination under
paragraph (1), the President--
(A) shall examine the effect of increased imports on the
domestic industry, as reflected in changes in such relevant
economic factors as output, productivity, utilization of
capacity, inventories, market share, exports, wages,
employment, domestic prices, profits, and investment, no one
of which is necessarily decisive; and
(B) shall not consider changes in technology or consumer
preference as factors supporting a determination of serious
damage or actual threat thereof.
(b) Provision of Relief.--
(1) In general.--If a determination under subsection (a) is
affirmative, the President may provide relief from imports of
the article that is the subject of such determination, as
provided in paragraph (2), to the extent that the President
determines necessary to remedy or prevent the serious damage
and to facilitate adjustment by the domestic industry.
(2) Nature of relief.--The relief that the President is
authorized to provide under this subsection with respect to
imports of an article is--
(A) the suspension of any further reduction provided for
under Annex 2-B of the Agreement in the duty imposed on the
article; or
(B) an increase in the rate of duty imposed on the article
to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed under the HTS
on like articles at the time the import relief is provided;
or
(ii) the column 1 general rate of duty imposed under the
HTS on like articles on the day before the date on which the
Agreement enters into force.
SEC. 333. PERIOD OF RELIEF.
(a) In General.--Subject to subsection (b), the import
relief that the President provides under section 332(b) may
not be in effect for more than 2 years.
(b) Extension.--
(1) In general.--Subject to paragraph (2), the President
may extend the effective period of any import relief provided
under this subtitle for a period of not more than 2 years, if
the President determines that--
(A) the import relief continues to be necessary to remedy
or prevent serious damage and to facilitate adjustment by the
domestic industry to import competition; and
(B) there is evidence that the industry is making a
positive adjustment to import competition.
(2) Limitation.--Any relief provided under this subtitle,
including any extensions thereof, may not, in the aggregate,
be in effect for more than 4 years.
SEC. 334. ARTICLES EXEMPT FROM RELIEF.
The President may not provide import relief under this
subtitle with respect to an article if--
(1) import relief previously has been provided under this
subtitle with respect to that article; or
(2) the article is subject to import relief under--
(A) subtitle A; or
(B) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
SEC. 335. RATE AFTER TERMINATION OF IMPORT RELIEF.
On the date on which import relief under this subtitle is
terminated with respect to an
[[Page H6767]]
article, the rate of duty on that article shall be the rate
that would have been in effect but for the provision of such
relief.
SEC. 336. TERMINATION OF RELIEF AUTHORITY.
No import relief may be provided under this subtitle with
respect to any article after the date that is 10 years after
the date on which duties on the article are eliminated
pursuant to the Agreement.
SEC. 337. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President
under this subtitle shall be treated as action taken under
chapter 1 of title II of such Act (19 U.S.C. 2251 et seq.).
SEC. 338. CONFIDENTIAL BUSINESS INFORMATION.
The President may not release information received in
connection with an investigation or determination under this
subtitle which the President considers to be confidential
business information unless the party submitting the
confidential business information had notice, at the time of
submission, that such information would be released by the
President, or such party subsequently consents to the release
of the information. To the extent a party submits
confidential business information, the party shall also
provide a nonconfidential version of the information in which
the confidential business information is summarized or, if
necessary, deleted.
Subtitle D--Cases Under Title II of the Trade Act of 1974
SEC. 341. FINDINGS AND ACTION ON KOREAN ARTICLES.
(a) Effect of Imports.--If, in any investigation initiated
under chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.), the Commission makes an affirmative
determination (or a determination which the President may
treat as an affirmative determination under such chapter by
reason of section 330(d) of the Tariff Act of 1930 (19 U.S.C.
1330(d))), the Commission shall also find (and report to the
President at the time such injury determination is submitted
to the President) whether imports of the Korean article are a
substantial cause of serious injury or threat thereof.
(b) Presidential Determination Regarding Korean Articles.--
In determining the nature and extent of action to be taken
under chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.), the President may exclude from the
action Korean articles with respect to which the Commission
has made a negative finding under subsection (a).
TITLE IV--PROCUREMENT
SEC. 401. ELIGIBLE PRODUCTS.
Section 308(4)(A) of the Trade Agreements Act of 1979 (19
U.S.C. 2518(4)(A)) is amended--
(1) by striking ``or'' at the end of clause (vi);
(2) by striking the period at the end of clause (vii) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(viii) a party to the United States-Korea Free Trade
Agreement, a product or service of that country or
instrumentality which is covered under that agreement for
procurement by the United States.''.
TITLE V--OFFSETS
SEC. 501. INCREASE IN PENALTY ON PAID PREPARERS WHO FAIL TO
COMPLY WITH EARNED INCOME TAX CREDIT DUE
DILIGENCE REQUIREMENTS.
(a) In General.--Section 6695(g) of the Internal Revenue
Code of 1986 is amended by striking ``$100'' and inserting
``$500''.
(b) Effective Date.--The amendment made by this section
shall apply to returns required to be filed after December
31, 2011.
SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE UNITED
STATES TO PROVIDE INFORMATION FOR TAX
ADMINISTRATION.
(a) In General.--Subchapter B of chapter 61 of the Internal
Revenue Code of 1986 is amended by redesignating section 6116
as section 6117 and by inserting after section 6115 the
following new section:
``SEC. 6116. REQUIREMENT FOR PRISONS LOCATED IN UNITED STATES
TO PROVIDE INFORMATION FOR TAX ADMINISTRATION.
``(a) In General.--Not later than September 15, 2012, and
annually thereafter, the head of the Federal Bureau of
Prisons and the head of any State agency charged with the
responsibility for administration of prisons shall provide to
the Secretary in electronic format a list with the
information described in subsection (b) of all the inmates
incarcerated within the prison system for any part of the
prior 2 calendar years or the current calendar year through
August 31.
``(b) Information.--The information with respect to each
inmate is--
``(1) first, middle, and last name,
``(2) date of birth,
``(3) institution of current incarceration or, for released
inmates, most recent incarceration,
``(4) prison assigned inmate number,
``(5) the date of incarceration,
``(6) the date of release or anticipated date of release,
``(7) the date of work release,
``(8) taxpayer identification number and whether the prison
has verified such number,
``(9) last known address, and
``(10) any additional information as the Secretary may
request.
``(c) Format.--The Secretary shall determine the electronic
format of the information described in subsection (b).''.
(b) Clerical Amendment.--The table of sections for such
subchapter is amended by striking the item relating to
section 6116 and by adding at the end the following new
items:
``Sec. 6116. Requirement for prisons located in United States to
provide information for tax administration.
``Sec. 6117. Cross reference.''.
SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES.
For the period beginning on December 1, 2015, and ending on
June 30, 2021, section 13031(a)(9) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(a)(9)) shall be applied and administered--
(1) in subparagraph (A), by substituting ``0.3464'' for
``0.21''; and
(2) in subparagraph (B)(i), by substituting ``0.3464'' for
``0.21''.
SEC. 504. EXTENSION OF CUSTOMS USER FEES.
(a) In General.--Section 13031(j)(3)(A) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(j)(3)(A)) is amended by striking ``January 7, 2020'' and
inserting ``August 2, 2021''.
(b) Other Fees.--Section 13031(j)(3)(B)(i) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(j)(3)(B)(i)) is amended by striking ``January 14,
2020'' and inserting ``December 8, 2020''.
SEC. 505. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Notwithstanding section 6655 of the Internal Revenue Code
of 1986, in the case of a corporation with assets of not less
than $1,000,000,000 (determined as of the end of the
preceding taxable year)--
(1) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or
September of 2012 shall be increased by 0.25 percent of such
amount (determined without regard to any increase in such
amount not contained in such Code);
(2) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or
September of 2016 shall be increased by 2.75 percent of such
amount (determined without regard to any increase in such
amount not contained in such Code); and
(3) the amount of the next required installment after an
installment referred to in paragraph (1) or (2) shall be
appropriately reduced to reflect the amount of the increase
by reason of such paragraph.
The SPEAKER pro tempore. The bill shall be debatable for 90 minutes,
with 30 minutes controlled by the gentleman from Michigan (Mr. Camp),
30 minutes controlled by the gentleman from Michigan (Mr. Levin), and
30 minutes controlled by the gentleman from Maine (Mr. Michaud).
The Chair recognizes the gentleman from Michigan (Mr. Camp).
General Leave
Mr. CAMP. Madam Speaker, I ask unanimous consent that Members have 5
legislative days in which to revise and extend their remarks.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. CAMP. Madam Speaker, I yield myself such time as I may consume.
The U.S.-Korea agreement is the most commercially significant trade
agreement considered by the Congress in 17 years, and it couldn't come
at a better time. With the unemployment rate stuck stubbornly above 9
percent, we must seek out and take advantage of all opportunities to
create American jobs. This agreement, known as KORUS, will do just that
by supporting hundreds of thousands of good-paying jobs in all sectors.
Last year, I worked closely with the administration, the major auto
makers, auto workers and Mr. Levin to address persistent barriers to
U.S. automobile trade with South Korea. The supplemental agreement
which is incorporated in the legislation before us today addresses key
tariff and nontariff barriers, and includes numerous provisions to
ensure that South Korea can no longer use its regulatory system to
block U.S. exports.
The International Trade Commission estimates that removal of
nontariff barriers will add an additional $48 million to $66 million in
new exports. This, in addition to the $194 million in expected new
exports from lower Korean tariffs on U.S. autos.
Inaction on KORUS has allowed the EU and other competitors to step in
and steal U.S. market share and has diminished U.S. leadership in Asia.
KORUS is key to our engagement in Asia and a critical bulwark to
Chinese influence in the region. I call on the President to promptly
enter this agreement into force so that our workers, companies,
farmers, and ranchers can get off the sidelines and recapture market
share. KORUS and the other two
[[Page H6768]]
agreements we will pass this week will create sustainable and well-
paying jobs.
Passage of KORUS will also deepen ties with a strong and important
ally. The United States and South Korea have stood shoulder-to-shoulder
for more than 60 years. KORUS is the next step forward in our bilateral
relationship, and today's action could not come soon enough.
I look forward to welcoming President Lee during his state visit
tomorrow, and to congratulating him personally on passage of this
important agreement.
I reserve the balance of my time.
Mr. LEVIN. It is now my distinct pleasure to yield 4 minutes to our
whip, the gentleman from Maryland (Mr. Hoyer).
Mr. HOYER. I thank the gentleman for yielding.
I rise in support of the three trade agreements that are pending
before us and in support of the Trade Adjustment Assistance for our
working men and women in this country.
There is no doubt, as so many of my colleagues have observed, that
globalization of the marketplace and the growth of competitors from
around the world has put a real stress on America and on American
workers. As one of those who has fought very hard to have this floor
consider legislation to facilitate making it in America, making sure
that American workers are making American goods and selling them here
and around the world, it seems to me that, in that process, what we
need to do is bring down barriers to exports around the world. I
perceive these three agreements accomplishing that objective.
I want to congratulate my dear friend, Sandy Levin, as well as the
chairman of the Ways and Means Committee, Mr. Camp, for working hard on
all of these agreements. I particularly want to congratulate Mr. Levin,
who has given such careful consideration and care to the development of
agreements that he feels he can support. He is supporting Korea and
Panama, as am I. He has concluded that the protections in Colombia are
not yet sufficient to protect workers that we all want to protect. I
share his concern there. I have transmitted that to the administration,
as has Mr. Levin.
I would like to read a portion of the submittal correspondence from
the President of the United States referencing Colombia. The agreement
contains state-of-the-art provisions to help protect and enforce
intellectual property rights, reduce regulatory red tape, and eliminate
regulatory barriers to U.S. exports.
The agreement also contains the highest standard for protecting labor
rights, carrying out covered environmental agreements, and ensuring
that key domestic labor and environmental laws are enforced, combined
with strong remedies for noncompliance.
Colombia has already made significant reforms related to the
obligations it will have under the labor chapter. A number of these
steps have been taken in fulfillment of the commitments Colombia made
in the agreed action plan.
I want to again say that Mr. Levin has visited Colombia, spent time
there and overseen the action plan and its implementation.
But then the important sentence for me and I hope for others is,
Colombia must successfully implement key elements of the action plan
before I will bring the agreement into force.
There is a bipartisan consensus, Madam Speaker, in favor of reducing
trade barriers. Those who support expanded trade do so because we
believe American companies can compete globally and export more of what
our workers make right here in America.
At the same time, though, trade agreements bring changes which may
cause and do cause some workers to lose their jobs. That is why
President Kennedy, in 1962, introduced a Trade Adjustment Assistance
program to mitigate the negative effects of changes in trade policy.
Under this program, the government provides job retraining, relocation
allowances, and income assistance for those whose jobs are affected by
international trade.
For companies that lose business, the Federal Government lends a hand
with guidance and financial assistance to help develop recovery plans.
President Kennedy called it: ``A program to afford time for American
initiative, American adaptability, and American resilience to assert
themselves.'' I believe these agreements give us that continuing
opportunity, but we must protect our workers in the process.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. HOYER. Mr. Camp, may I have a minute?
Mr. CAMP. How much time do I have?
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Camp) has
28 minutes remaining.
Mr. CAMP. I yield the gentleman 1 minute.
{time} 2150
Mr. HOYER. I thank my friend for yielding.
As we engage in measures designed to strengthen exports, at the same
time Congress must continue to provide assistance to those whose jobs
may be lost in the process. We need to do whatever we can to help get
our people back to work and safeguard American jobs.
I urge a vote in favor of the trade adjustment assistance. That will
be the last item we will consider. And I indicate my support of all
three of the agreements.
In May of '07, we made definite progress with Mr. Levin's leadership
and the leadership in a bipartisan way of saying workers' rights were
going to be recognized in these agreements. In my view, that is the
case in these three agreements. Are they perfect? I think no agreement
is ever perfect. But do they move us in a position where the United
States will be better able to make it in America and sell it abroad? I
think they do; and, therefore, I will support these agreements.
I thank the gentleman for yielding me the additional minute.
Mr. MICHAUD. I yield 1 minute to the gentleman from Ohio (Mr.
Kucinich).
Mr. KUCINICH. Madam Speaker, this agreement is based on the NAFTA-
style trade model that has displaced and cut hundreds of thousands of
jobs in the U.S. over the last decade. According to the Economic Policy
Institute, this agreement is expected to increase our trade deficit
with Korea by $16.7 billion and, in turn, cost the U.S. 159,000 jobs
within the first 7 years of its implementation alone. Global Trade
Watch states that it is expected to increase our trade deficit in autos
and auto parts by $700 million, further devastating a domestic industry
that's been in decline.
I'm tired of visiting places where there's grass growing in parking
lots in this country where they used to make steel and they used to
make automotive products. It's time that we drew the line on behalf of
American jobs and American workers and defeat this trade agreement.
Mr. CAMP. I yield 2 minutes to the distinguished chairman of the
Trade Subcommittee, the gentleman from Texas (Mr. Brady).
Mr. BRADY of Texas. Madam Speaker, I want to thank Chairman Camp and
Ranking Member Sandy Levin for working together with this President,
with the Senate, and with the auto companies and autoworkers to improve
this agreement to ensure we sell more American cars into Korea. This is
why, among many other reasons, this agreement has so much strong
bipartisan support.
As I've already said tonight, I'm excited to be here. This trade
agreement improves as well as strengthens our security relationship
with one of our strongest allies. This is the most commercially
significant trade agreement the United States has signed since I've
been in Congress.
The delay in implementing the sales agreement has been felt across
America. If our exporters can't compete because of high tariffs or
nontariff barriers, they can't grow their businesses and put Americans
back to work. That's why expanding opportunities for U.S. exporters and
finding new customers is so critical to our workers, so critical to
putting our economy back on the right track and creating good-paying
American jobs right here in the United States.
For example, this agreement turns one-way trade into the United
States into two-way trade. The average South Korean tariff on our
exporters is more than four times what it is when South Korea exports
to us. This agreement addresses that imbalance.
The job-creating benefits of this agreement will be enjoyed broadly
[[Page H6769]]
among manufacturers, agriculture, service, and technology companies.
The American Farm Bureau estimates that U.S. farm exports will increase
by more than $1.8 billion to this market. Moreover, 90 percent of
American companies selling to South Korea are small and medium-sized
enterprises in our neighborhoods and in our communities, and it will
lead to an additional $3 billion in exports for these small businesses.
It's no longer enough to buy American; we have to sell American. And
this ``Sell American'' agreement is essential if we are to get our
economy back on track. I strongly support it.
Mr. LEVIN. I reserve the balance of my time.
Mr. MICHAUD. Madam Speaker, I yield 1 minute to the gentlewoman from
Ohio (Ms. Kaptur).
Ms. KAPTUR. I thank the gentleman from Maine for yielding and rise in
opposition to the proposed South Korea trade accord.
Look, my friends, South Korea's market is basically closed. You can't
see any other cars on the road there other than Korean cars. And
American policy has allowed jobs to be whittled away here at home
through a trade agenda that outsources U.S. production and American
jobs. Every single year we have a trade deficit with South Korea now.
Why do we want to make it worse? Do you know what? The American people
know it. They're living it. They want us to fix it. They're pouring out
into the streets of America to tell us.
Last year, our trade deficit with South Korea already was over $10
billion. That translates into more lost jobs here at home. But rather
than stopping this outsourcing of America, the executive branch and
some of their allies up here keep concocting more of the same NAFTA-
type trade agreements that increase our trade deficit, and obviously
even more with South Korea now.
The Economic Policy Institute analysis predicts this proposed
agreement with South Korea will cost us 159,000 more lost jobs, net,
and the International Trade Commission verifies that.
Isn't it time that we put Americans back to work here inside our
country rather than giving them more of the same red ink?
Mr. CAMP. At this time, I reserve the balance of my time.
Mr. LEVIN. I continue to reserve the balance of my time.
Mr. MICHAUD. I would now yield 1 minute to the gentleman from Iowa
(Mr. Braley).
Mr. BRALEY of Iowa. I thank the gentleman for yielding.
Madam Speaker, I call on all my colleagues to oppose George Bush's
job-killing trade deal with Korea. Listen to the American people: Only
18 percent of Americans believe that free trade has created jobs in the
United States. That's from the conservative Wall Street Journal poll.
The same poll says that 53 percent of Americans say trade deals have
hurt our country. Sixty-one percent of the Tea Party supporters say
that free trade has hurt the United States.
Facts don't lie. The simple truth is, during the last decade of so-
called free trade, the United States has lost 54,000 manufacturers and
over 5 million manufacturing jobs--43,000 manufacturing jobs in my
State of Iowa. That's 1,370 factory jobs lost every day at an average
salary of $55,000.
Wake up, America. We need to get serious about creating jobs, and
passing more Bush-era, job-killing trade deals is not the answer. We
have a trade deficit that has created a job deficit. That's what we
need to solve.
Mr. CAMP. Madam Speaker, I yield 1 minute to a distinguished member
of the Ways and Means Committee, the gentleman from New York (Mr.
Reed).
Mr. REED. Thank you, Mr. Chairman.
I rise today in strong support of the three pending agreements before
this great body. This is a great day. This is a great day for America
in the sense that we have before us an opportunity to create 250,000
jobs. That's the administration's own number. That is the number that
has been verified, and I am a supporter of that number in creating jobs
for Americans across this entire Nation.
Now, when I came here as a freshman Member of Congress, there was a
big question about the freshman class's thoughts about free trade. And
I was proud to be part of an effort that got 67 out of 87 freshman
Republican Members to sign a letter to the administration to say that
we support free and fair trade. Because when it's free and when it's
fair, the American workers will outcompete anyone in the world. And
that is exactly what these agreements will do.
In particular, with the U.S.-Korea relationship, not only will we be
strengthening a strategic relationship, we will be creating hundreds of
thousands of jobs.
With that, I support this bill.
{time} 2200
Mr. MICHAUD. I yield 3 minutes to the gentlewoman from Ohio (Ms.
Sutton).
Ms. SUTTON. I thank the gentleman for the time.
Madam Speaker, I rise today in opposition to all of the raw trade
deals coming to the floor tomorrow, because our families cannot afford
the loss of any more jobs.
Based on the myth that there is some sort of world free market, they
call these deals ``free trade agreements,'' but there is nothing free
about them. These NAFTA-type deals are not free to our workers, who
will lose their jobs because of them. They're not free for our
communities when more of our factories are boarded up and when more
careers are packed up and shipped overseas as some of our multinational
corporations, with no allegiance to America, search the world over for
the lowest wages to be found. Common sense tells us that pittance wages
paid to workers in other countries, like low wages here, will not
empower people to buy our products.
Enough is enough, Madam Speaker.
Some of the same people here on the floor who are claiming these
deals level the playing field for American manufacturers and jobs
supported NAFTA, too. How has that worked for us? Since NAFTA was
signed, according to the Bureau of Labor Statistics, we've seen
approximately 5 million manufacturing jobs lost--over 350,000 of those
jobs from my State of Ohio. These are not free deals. They are raw
deals for the American people.
Make no mistake. The fact that we're seeing more trade adjustment
assistance being offered for passage alongside these deals is an
admission that more Americans are about to lose their jobs with these
deals. At a time when so many are struggling to find jobs, why would we
pass a deal that we know will result in job loss?
It's unconscionable that we would pass a deal with Colombia where
they have allowed trade unionists and those standing for civil rights
to be killed with impunity. If we pass a deal with Korea, according to
the Economic Policy Institute, we could see our trade deficit increase
by another $14 billion, and we could see another 159,000 jobs lost.
This raw deal would be particularly bad for my district and districts
around the country that support our domestic auto industry--auto
suppliers and parts makers. Right now, Korea has the largest trade
imbalance when it comes to cars, only importing 5 percent of cars sold.
This won't change that. In fact, it will only make it worse by allowing
Korea to keep out American cars if they don't meet certain standards.
Madam Speaker, enough is enough.
This bad trade deal pours salt into the wound already festering
within the American manufacturing sector, and it will destroy
opportunities for people right here in the United States. The American
people don't want more bad free trade deals that aren't free.
I encourage all of my colleagues to vote against this horrible,
horrible package of trade deals. Enough is enough.
Mr. CAMP. Madam Speaker, I yield 1 minute to the distinguished chair
of the Foreign Affairs Committee, the gentlewoman from Florida (Ms.
Ros-Lehtinen).
Ms. ROS-LEHTINEN. I thank my good friend from Michigan for yielding.
Madam Speaker, at a time when millions of American families are
struggling and when so many people are looking for work, passage of
this U.S.-South Korea Free Trade Agreement should be a top priority for
all of us; but there is more at stake than just increased exports.
South Korea is a key
[[Page H6770]]
U.S. ally in an unstable region of the world where tens of thousands of
our U.S. troops stand on guard against aggression and where U.S.
interests are increasingly under threat from China and other countries.
At a time when much of the world is waiting to see if the U.S. will
retreat from our responsibilities, passage of this free trade agreement
will serve as a clear demonstration of our enduring commitment to our
ally South Korea and to our determination to defend our interests
throughout East Asia.
I strongly urge my colleagues to vote for this U.S.-South Korea Free
Trade Agreement and for the creation of tens of thousands of American
jobs for the many families who are desperately in need of them.
Mr. MICHAUD. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Sherman).
Mr. SHERMAN. It looks like the only thing Congress is going to do
this year about jobs is to ship them overseas. Trade adjustment
assistance is being authorized tomorrow, but not a penny is being
appropriated tomorrow; and any penny that is appropriated will, no
doubt, be taken from health and education spending necessary without
the trade agreements.
This South Korean Free Trade Agreement will increase our trade
deficit by tens of billions of dollars, and every billion dollars of
increase in our trade deficit costs us tens of thousands of jobs. The
agreement is being sold as if goods made in South Korea are the only
goods that are going to come into our country. That's wrong in three
ways.
First, if goods are 65 percent made in China, 35 percent finished in
South Korea, they come into our country duty free; and that 35 percent
of the work done in South Korea can be done by Chinese workers living
in barracks in South Korea, so the goods may not ever be touched by a
South Korean.
We are going to be talking in this Congress, I hope, about Chinese
currency manipulation. There are proposals that would impose tariffs on
Chinese goods. This South Korean agreement is a prebuilt loophole in
anything we try to do with China over currency manipulation. They
manipulate their currency. They make 65 percent of the goods in China.
They ship them to South Korea. They come in free to the United States
without having to worry about our tariffs or our sanctions against
their currency manipulation.
Second, goods that are 65 percent made in North Korea, 35 percent
made in South Korea have a right to come in under this agreement; but
we have an executive order that will bar them at our ports, so we will
be in violation of this agreement on the first day. That means South
Korea can impose sanctions and take away whatever benefits you think
we're going to get under this agreement.
The SPEAKER pro tempore (Mr. Yoder). The time of the gentleman has
expired.
Mr. CAMP. Mr. Speaker, I have just one further request for time, so I
reserve the balance of my time.
Mr. LEVIN. I yield 2 minutes to the gentleman from California (Mr.
Berman), the ranking member of the Foreign Affairs Committee.
Mr. BERMAN. I thank my friend for yielding.
I rise in support of the Korea trade agreement.
The agreement will lead to increased California exports of
manufactured goods, agricultural products and raw materials, thereby
creating a large number of new jobs. It will also provide rigorous
intellectual property protections for the creative industries in Los
Angeles and throughout the Nation.
I would like to use the remainder of my time to address the
allegations that the agreement would undermine our sanctions against
North Korea. There is no truth to those allegations. Under KORUS, we
will continue to enforce our sanctions against North Korea just as we
do now.
The first allegation is that the agreement would allow North Korean
goods produced at the Kaesong Industrial Complex in North Korea or
elsewhere in that country to be imported into the United States. I
raised this issue with Ambassador Kirk.
His response in writing:
``Neither the rules of origin nor any other provision of KORUS
changes U.S. sanctions on North Korea, including the prohibition on
direct or indirect importation of goods, services and technology from
North Korea.''
He went on to say:
``South Korean firms cannot avoid U.S. sanctions by including parts
from North Korea in their exports to the U.S. and claiming preferential
tariff treatment.''
{time} 2210
The second allegation is that South Korean firms might have recourse
against U.S. sanctions targeted at North Korea, either under KORUS or
under the WTO. Kirk's response, ``U.S. sanctions are fully consistent
with KORUS, and therefore, South Korea would not be able to obtain
remedies against U.S. sanctions using KORUS dispute settlement
procedures. Nor does KORUS provide South Korea with any recourse to the
WTO.''
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. BERMAN. According to the Congressional Research Service, article
2.8.4(a), explicitly permits the U.S. to prohibit imports from a third
country, such as North Korea. The fact is, we pass KORUS, our North
Korean embargo stands; we defeat KORUS, our embargo stands. There are
legitimate issues to debate regarding KORUS, but one should not let a
bogus argument determine our vote.
Mr. MICHAUD. Mr. Speaker, I yield 1 minute to the gentleman from
Illinois (Mr. Lipinski).
Mr. LIPINSKI. I thank the gentleman for yielding and for his
leadership on this issue.
Mr. Speaker, I cannot imagine a worse time for this job-killing trade
agreement with South Korea. Expanding a NAFTA-style trade agenda that
has already destroyed 5 million manufacturing jobs would make no sense
in the best of times, but to do it when 25 million Americans are
unemployed or underemployed, it is totally absurd now.
Economists estimate that 159,000 American workers will lose their
jobs over 7 years if we pass this agreement, most of these good-paying
manufacturing jobs. In exchange, we likely get not only more Chinese
imports, but we open up our country to imports from the nuclear
dictatorship in North Korea. Manufacturers in my district know this.
Workers in my district know this. It only seems that Washington is
blind to this.
It is well past time that Washington puts American workers and
American manufacturers first. We can start by rejecting this trade
agreement. We cannot hang our middle class out to dry any longer. We
need to support American workers now.
Mr. CAMP. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from
Minnesota (Mr. Paulsen), a distinguished member of the Ways and Means
Committee.
Mr. PAULSEN. I thank the chairman for his leadership because this is
an exciting day, an important time for our economy. I strongly urge
passage of all three of these long-stalled free trade agreements which
will promote exports, with new sales to new customers, giving our
economy more jobs. And while some in Washington have put these trade
agreements on the back burner, other countries have been moving full-
speed ahead on trade. The European Union signed their own agreement
with South Korea, which put American companies at a disadvantage in one
of the great emerging Asian markets. Standing still on trade is moving
our economy backwards.
Mr. Speaker, passing the South Korea trade agreement is the quickest
and most effective way to level the playing field for American
companies, small, medium, and large. One of Minnesota's major employers
with lots of jobs connected to trade is 3M, which manufactures everyday
products from Post-It notes to Scotch tape to road signs to medical
devices. South Korea is this company's fourth-largest export market,
and the passage of this trade agreement will lower the duty rate levied
on these American products by $20 million. This is about selling
American. This will free up additional capital to create new jobs and
reinvest in innovation and research and development to create new
products.
[[Page H6771]]
Mr. Speaker, we must remain focused on creating jobs and helping our
economy. I strongly encourage the passage of the South Korea free trade
agreement as well as the agreements with Panama and Colombia, marking
the largest expansion of trade in 15 years.
Mr. LEVIN. Could I inquire how much time remains for the three of us?
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Levin) has
23\1/2\ minutes remaining, the gentleman from Michigan (Mr. Camp) has
21\1/2\ minutes remaining, and the gentleman from Maine (Mr. Michaud)
has 21 minutes.
Mr. CAMP. I have no further requests for time, so I will reserve the
balance of my time.
Mr. LEVIN. Mr. Speaker, I yield myself 3\1/2\ minutes, but I may use
only 2\1/2\.
First I want to emphasize each of these agreements should be on their
own merit. Trade is so polarized, it's easy to lump things all
together. We won't carve out a new trade policy if that's the way we
proceed.
Secondly, there's been reference to NAFTA. This is really kind of an
anti-NAFTA agreement. The labor standards are the new standards that we
put into Peru and are incorporated here. The reference to job loss and
EPI, it bases its assumption that what happened after NAFTA in terms of
trade will happen as well with Korea. They are very different
situations. And that's why many suggestions are that there will be
major increases in jobs.
Thirdly, there's been reference to this as the George Bush FTA. No,
this is the FTA renegotiated by the Obama administration. And why was
it renegotiated? To open up the markets of Korea, to change one-way
trade to two-way trade. That's jobs. And that's exactly what this
agreement does. Tomorrow we will outline how it does it. In all
respects, it will make sure that the Korean market at long last is open
to American automotive products, which is the major source of our trade
deficit. That's why the automotive companies issued this statement:
``As representatives of the largest exporting sector, this FTA will
help open an important auto market for Chrysler, Ford, and GM exports.
Our companies make the best cars and trucks on the road, and we are
excited for the export opportunity this agreement represents.'' That's
why it's supported by the UAW. It will open up markets. That's why Ford
sat down today to describe how they're going to penetrate the market of
Korea. They're determined to do that, as the other companies are. So
this is a market-opening provision at long last, in that sense a major
change from the Bush-negotiated agreement. I strongly urge support for
the Korea FTA.
I reserve the balance of my time.
Mr. MICHAUD. Mr. Speaker, I yield 1 minute to a leader of the China
currency manipulation legislation, the gentleman from Pennsylvania (Mr.
Critz).
Mr. CRITZ. I thank the gentleman from Maine for yielding.
Mr. Speaker, I rise in opposition to the Korea free trade agreement.
I represent a manufacturing district, and we need trade policies that
put American workers first. I've seen firsthand the negative effects
that trade agreements have had on our manufacturing sector. And this
one is estimated to displace 159,000 jobs and increase our trade
deficit with Korea by $16.7 billion.
Every trade dollar we lose as a result of an international
marketplace rigged against us is one more blow to our effort to climb
out of debt and get our economy moving again. We can prevent the
outsourcing and offshoring of American jobs and the ballooning of our
trade deficit simply by basing trade agreements on a level playing
field and rebuilding our manufacturing strength. In order to accomplish
this, we must oppose agreements like this one that are founded on
policies that have a record of failure.
With an unemployment rate currently hovering around 9 percent and an
11 million job shortfall, we simply cannot afford another trade
agreement that increases the deficit and drives more Americans out of
work. Please join me in opposing the Korea free trade agreement, as all
our workers and businesses deserve to know that we are standing up for
them in the global marketplace.
The SPEAKER pro tempore. Pursuant to clause 1(c) of rule XIX, further
consideration of H.R. 3080 is postponed.
____________________