    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    117 STAT. 909]]

    Public Law 108-77
    108th Congress

    An Act

    To implement the United States-Chile Free Trade Agreement. [NOTE: Sept.
    3, 2003 -  [H.R. 2738]]

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, [NOTE: United States-
    Chile Free Trade Agreement Implementation Act. 19 USC 3805 note.]

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

    Sec. 1. Short title; table of contents.
    Sec. 2. Purposes.
    Sec. 3. Definitions.

    TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

    Sec. 101. Approval and entry into force of the Agreement.
    Sec. 102. Relationship of the agreement to United States and State law.
    Sec. 103. Consultation and layover provisions for, and effective date
    of, proclaimed actions.
    Sec. 104. Implementing actions in anticipation of entry into force and
    initial regulations.
    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. Drawback.
    Sec. 204. Customs user fees.
    Sec. 205. Disclosure of incorrect information; denial of preferential
    tariff treatment; false certificates of origin.
    Sec. 206. Reliquidation of entries.
    Sec. 207. Recordkeeping requirements.
    Sec. 208. Enforcement of textile and apparel rules of origin.
    Sec. 209. Conforming amendments.
    Sec. 210. Regulations.

    TITLE III--RELIEF FROM IMPORTS

    Sec. 301. Definitions.

    Subtitle A--Relief From Imports Benefiting From the Agreement

    Sec. 311. Commencing of action for relief.
    Sec. 312. Commission action on petition.
    Sec. 313. Provision of relief.
    Sec. 314. Termination of relief authority.
    Sec. 315. Compensation authority.
    Sec. 316. Confidential business information.

    Subtitle B--Textile and Apparel Safeguard Measures

    Sec. 321. Commencement of action for relief.

    [[Page 910]]

    117 STAT. 910

    Sec. 322. Determination and provision of relief.
    Sec. 323. Period of relief.
    Sec. 324. Articles exempt from relief.
    Sec. 325. Rate after termination of import relief.
    Sec. 326. Termination of relief authority.
    Sec. 327. Compensation authority.
    Sec. 328. Business confidential information.

    TITLE IV--TEMPORARY ENTRY OF BUSINESS PERSONS

    Sec. 401. Nonimmigrant traders and investors.
    Sec. 402. Nonimmigrant professionals; labor attestation.
    Sec. 403. Labor disputes.
    Sec. 404. Conforming amendments.

    SEC. 2. PURPOSES. [NOTE: 19 USC 3805 note.]

    The purposes of this Act are--
    (1) to approve and implement the Free Trade Agreement
    between the United States and the Republic of Chile entered into
    under the authority of section 2103(b) of the Bipartisan Trade
    Promotion Authority Act of 2002;
    (2) to strengthen and develop economic relations between the
    United States and Chile for their mutual benefit;
    (3) to establish free trade between the 2 nations through
    the reduction and elimination of barriers to trade in goods and
    services and to investment; and
    (4) to lay the foundation for further cooperation to expand
    and enhance the benefits of such Agreement.

    SEC. 3. DEFINITIONS. [NOTE: 19 USC 3805 note.]

    In this Act:
    (1) Agreement.--The term ``Agreement'' means the United
    States-Chile Free Trade Agreement approved by the Congress under
    section 101(a)(1).
    (2) HTS.--The term ``HTS'' means the Harmonized Tariff
    Schedule of the United States.
    (3) 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. [NOTE: 19 USC 3805 note.] APPROVAL AND ENTRY INTO FORCE OF
    THE AGREEMENT.

    (a) Approval of Agreement and Statement of Administrative Action.--
    Pursuant to section 2105 of the Bipartisan Trade Promotion Authority Act
    of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 (19
    U.S.C. 2191), the Congress approves--
    (1) the United States-Chile Free Trade Agreement entered
    into on June 6, 2003, with the Government of Chile and submitted
    to the Congress on July 15, 2003; and
    (2) the statement of administrative action proposed to
    implement the Agreement that was submitted to the Congress on
    July 15, 2003.

    (b) Conditions for Entry Into Force of the Agreement.--At such time
    as the President determines that Chile has taken

    [[Page 911]]

    117 STAT. 911

    measures necessary to bring it into compliance with the provisions of
    the Agreement that take effect on the date on which the Agreement enters
    into force, the President is authorized to exchange notes with the
    Government of Chile providing for the entry into force, on or after
    January 1, 2004, of the Agreement for the United States.

    SEC. 102. [NOTE: 19 USC 3805 note.] RELATIONSHIP OF THE AGREEMENT TO
    UNITED STATES AND STATE LAW.

    (a) Relationship 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. [NOTE: President. 19 USC 3805 note.] CONSULTATION AND
    LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE OF, PROCLAIMED
    ACTIONS.

    (a) Consultation and Layover Requirements.--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 United States International Trade
    Commission;

    [[Page 912]]

    117 STAT. 912

    (2) the [NOTE: Reports.] President has submitted a report
    to the Committee on Ways and Means of the House of
    Representatives and the Committee on Finance of the Senate that
    sets forth--
    (A) the action proposed to be proclaimed and the
    reasons therefor; and
    (B) the advice obtained under paragraph (1);
    (3) a period of 60 calendar days, beginning on the first day
    on which the requirements set forth in paragraphs (1) and (2)
    have been met has expired; and
    (4) the President has consulted with such Committees
    regarding the proposed action during the period referred to in
    paragraph (3).

    (b) Effective [NOTE: Federal Register, publication.] 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 subsection (a) may not take effect before
    the 15th day after the date on which the text of the proclamation is
    published in the Federal Register.

    SEC. 104. [NOTE: 19 USC 3805 note.] IMPLEMENTING ACTIONS IN
    ANTICIPATION OF ENTRY INTO FORCE AND INITIAL REGULATIONS.

    (a) Implementing Actions.--
    (1) Proclamation authority.--After the date of enactment of
    this Act--
    (A) the President may proclaim such actions, and
    (B) other appropriate officers of the United States
    Government may issue such regulations,
    as may be necessary to ensure that any provision of this Act, or
    amendment made by this Act, that takes effect on the date the
    Agreement enters into force is appropriately implemented on such
    date, but no such proclamation or regulation may have an
    effective date earlier than the date of entry into force.
    (2) Waiver of 15-day restriction.--The 15-day restriction
    contained in section 103(b) on the taking effect of proclaimed
    actions is waived to the extent that the application of such
    restriction would prevent the taking effect on the date the
    Agreement enters into force of any action proclaimed under this
    section.

    (b) Initial [NOTE: Deadlines.] 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 referred to in section 101(a)(2) to implement the Agreement
    shall, to the maximum extent feasible, be issued within 1 year after the
    date of entry into force of the Agreement. In the case of any
    implementing action that takes effect on a date after the date of entry
    into force of the Agreement, initial regulations to carry out that
    action shall, to the maximum extent feasible, be issued within 1 year
    after such effective date.

    SEC. 105. [NOTE: 19 USC 3805 note.] 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 may not be considered to be an agency for purposes of section 552
    of title 5, United States Code.

    [[Page 913]]

    117 STAT. 913

    (b) Authorization of Appropriations.--There are authorized to be
    appropriated for each fiscal year after fiscal year 2003 to the
    Department of Commerce such sums as may be necessary for the
    establishment and operations of the office 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. [NOTE: 19 USC 3805 note.] ARBITRATION OF CLAIMS.

    (a) Submission of Certain Claims.--The United States is authorized
    to resolve any claim against the United States covered by article
    10.15(1)(a)(i)(C) or 10.15(1)(b)(i)(C) of the Agreement, pursuant to the
    Investor-State Dispute Settlement procedures set forth in section B of
    chapter 10 of the Agreement.

    (b) Contract Clauses.--All contracts executed by any agency of the
    United States on or after the date of entry into force of the Agreement
    shall contain a clause specifying the law that will apply to resolve any
    breach of contract claim.

    SEC. 107. [NOTE: 19 USC 3805 note.] EFFECTIVE DATES; EFFECT OF
    TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the
    provisions of this Act and the amendments made by this Act take effect
    on the date the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on
    the date of the enactment of this Act.
    (c) Termination of the Agreement.--On the date on which the
    Agreement ceases to be in force, the provisions of this Act (other than
    this subsection) and the amendments made by this Act shall cease to be
    effective.

    TITLE II--CUSTOMS PROVISIONS

    SEC. 201. [NOTE: 19 USC 3805 note.] TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--
    (1) Proclamation authority.--The President may proclaim--
    (A) such modifications or continuation of any duty,
    (B) such continuation of duty-free or excise
    treatment, or
    (C) such additional duties,
    as the President determines to be necessary or appropriate to
    carry out or apply articles 3.3, 3.7, 3.9, article 3.20 (8),
    (9), (10), and (11), and Annex 3.3 of the Agreement.
    (2) Effect [NOTE: President. Termination date.] on chilean
    gsp status.--Notwithstanding section 502(a)(1) of the Trade Act
    of 1974 (19 U.S.C. 2462(a)(1)), the President shall terminate
    the designation of Chile as a beneficiary developing country for
    purposes of title V of the Trade Act of 1974 on the date of
    entry into force of the Agreement.

    (b) Other Tariff Modifications.--Subject to the consultation and
    layover provisions of section 103(a), the President may proclaim--
    (1) such modifications or continuation of any duty,
    (2) such modifications as the United States may agree to
    with Chile regarding the staging of any duty treatment set forth
    in Annex 3.3 of the Agreement,
    (3) such continuation of duty-free or excise treatment, or
    (4) such additional duties,

    [[Page 914]]

    117 STAT. 914

    as the President determines to be necessary or appropriate to maintain
    the general level of reciprocal and mutually advantageous concessions
    with respect to Chile provided for by the Agreement.
    (c) Additional Tariffs on Agricultural Safeguard Goods.--
    (1) In general.--In addition to any duty proclaimed under
    subsection (a) or (b), and subject to paragraphs (3) through
    (5), the Secretary of the Treasury shall assess a duty, in the
    amount prescribed under paragraph (2), on an agricultural
    safeguard good if the Secretary of the Treasury determines that
    the unit import price of the good when it enters the United
    States, determined on an F.O.B. basis, is less than the trigger
    price indicated for that good in Annex 3.18 of the Agreement or
    any amendment thereto.
    (2) Calculation of additional duty.--The amount of the
    additional duty assessed under this subsection shall be
    determined as follows:
    (A) If the difference between the unit import price
    and the trigger price is less than, or equal to, 10
    percent of the trigger price, no additional duty shall
    be imposed.
    (B) If the difference between the unit import price
    and the trigger price is greater than 10 percent, but
    less than or equal to 40 percent, of the trigger price,
    the additional duty shall be equal to 30 percent of the
    difference between the preferential tariff rate and the
    column 1 general rate of duty imposed under the HTS on
    like articles at the time the additional duty is
    imposed.
    (C) If the difference between the unit import price
    and the trigger price is greater than 40 percent, but
    less than or equal to 60 percent, of the trigger price,
    the additional duty shall be equal to 50 percent of the
    difference between the preferential tariff rate and the
    column 1 general rate of duty imposed under the HTS on
    like articles at the time the additional duty is
    imposed.
    (D) If the difference between the unit import price
    and the trigger price is greater than 60 percent, but
    less than or equal to 75 percent, of the trigger price,
    the additional duty shall be equal to 70 percent of the
    difference between the preferential tariff rate and the
    column 1 general rate of duty imposed under the HTS on
    like articles at the time the additional duty is
    imposed.
    (E) If the difference between the unit import price
    and the trigger price is greater than 75 percent of the
    trigger price, the additional duty shall be equal to 100
    percent of the difference between the preferential
    tariff rate and the column 1 general rate of duty
    imposed under the HTS on like articles at the time the
    additional duty is imposed.
    (3) Exceptions.--No additional duty under this subsection
    shall be assessed on an agricultural safeguard good if, at the
    time of entry, the good is subject to import relief under--
    (A) subtitle A of title III of this Act; or
    (B) chapter 1 of title II of the Trade Act of 1974
    (19 U.S.C. 2251 et seq.).
    (4) Termination.--This [NOTE: Applicability.] subsection
    shall cease to apply on the date that is 12 years after the date
    on which the Agreement enters into force.

    [[Page 915]]

    117 STAT. 915

    (5) Tariff-rate quotas.--If [NOTE: Applicability.] an
    agricultural safeguard good is subject to a tariff-rate quota,
    and the in-quota duty rate for the good proclaimed pursuant to
    subsection (a) or (b) is zero, any additional duty assessed
    under this subsection shall be applied only to over-quota
    imports of the good.
    (6) Notice.--Not [NOTE: Deadline.] later than 60 days
    after the Secretary of the Treasury first assesses additional
    duties on an agricultural safeguard good under this subsection,
    the Secretary shall notify the Government of Chile in writing of
    such action and shall provide to the Government of Chile data
    supporting the assessment of additional duties.
    (7) Modification [NOTE: Deadline. President.] of trigger
    prices.--Not later than 60 calendar days before agreeing with
    the Government of Chile pursuant to article 3.18(2)(b) of the
    Agreement on a modification to a trigger price for a good listed
    in Annex 3.18 of the Agreement, the President shall notify the
    Committees on Ways and Means and Agriculture of the House of
    Representatives and the Committees on Finance and Agriculture of
    the Senate of the proposed modification and the reasons
    therefor.
    (8) Definitions.--In this subsection:
    (A) Agricultural safeguard good.--The term
    ``agricultural safeguard good'' means a good--
    (i) that qualifies as an originating good
    under section 202;
    (ii) that is included in the United States
    Agricultural Safeguard Product List set forth in
    Annex 3.18 of the Agreement; and
    (iii) for which a claim for preferential
    tariff treatment under the Agreement has been
    made.
    (B) F.O.B.--The term ``F.O.B.'' means free on board,
    regardless of the mode of transportation, at the point
    of direct shipment by the seller to the buyer.
    (C) Unit import price.--The term ``unit import
    price'' means the price expressed in dollars per
    kilogram.

    (d) Conversion to Ad Valorem Rates.--For purposes of subsections (a)
    and (b), with respect to any good for which the base rate in the
    Schedule of the United States to Annex 3.3 of the Agreement is a
    specific or compound rate of duty, the President may substitute for the
    base rate an ad valorem rate that the President determines to be
    equivalent to the base rate.

    SEC. 202. [NOTE: 19 USC 3805 note.] RULES OF ORIGIN.

    (a) Originating Goods.--
    (1) In general.--For purposes of this Act and for purposes
    of implementing the tariff treatment provided for under the
    Agreement, except as otherwise provided in this section, a good
    is an originating good if--
    (A) the good is wholly obtained or produced entirely
    in the territory of Chile, the United States, or both;
    (B) the good--
    (i) is produced entirely in the territory of
    Chile, 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
    4.1 of the Agreement, or

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    117 STAT. 916

    (II) the good otherwise satisfies
    any applicable regional value-content or
    other requirements specified in Annex
    4.1 of the Agreement; and
    (ii) satisfies all other applicable
    requirements of this section; or
    (C) the good is produced entirely in the territory
    of Chile, the United States, or both, exclusively from
    materials described in subparagraph (A) or (B).
    (2) Simple combination or mere dilution.--A good shall not
    be considered to be an originating good and a material shall not
    be considered to be an originating material by virtue of having
    undergone--
    (A) simple combining or packaging operations; or
    (B) mere dilution with water or another substance
    that does not materially alter the characteristics of
    the good or material.

    (b) De Minimis Amounts of Nonoriginating Materials.--
    (1) In general.--Except as provided in paragraphs (2) and
    (3), a good that does not undergo a change in tariff
    classification pursuant to Annex 4.1 of the Agreement is an
    originating good if--
    (A) the value of all nonoriginating materials that
    are used in the production of the good and do not
    undergo the applicable change in tariff classification
    does not exceed 10 percent of the adjusted value of the
    good;
    (B) the value of such nonoriginating materials is
    included in the value of nonoriginating materials for
    any applicable regional value-content requirement; and
    (C) the good meets all other applicable requirements
    of this section.
    (2) Exceptions.--Paragraph (1) does not apply to the
    following:
    (A) A nonoriginating material provided for in
    chapter 4 of the HTS, or a nonoriginating dairy
    preparation containing over 10 percent by weight of milk
    solids provided for in subheading 1901.90 or 2106.90 of
    the HTS, that is used in the production of a good
    provided for in chapter 4 of the HTS.
    (B) A nonoriginating material provided for in
    chapter 4 of the HTS, or nonoriginating dairy
    preparations containing over 10 percent by weight of
    milk solids provided for in subheading 1901.90 of the
    HTS, that are used in the production of the following
    goods:
    (i) Infant preparations containing over 10
    percent in weight of milk solids provided for in
    subheading 1901.10 of the HTS.
    (ii) Mixes and doughs, containing over 25
    percent by weight of butterfat, not put up for
    retail sale, provided for in subheading 1901.20 of
    the HTS.
    (iii) Dairy preparations containing over 10
    percent by weight of milk solids provided for in
    subheading 1901.90 or 2106.90 of the HTS.
    (iv) Goods provided for in heading 2105 of the
    HTS.
    (v) Beverages containing milk provided for in
    subheading 2202.90 of the HTS.

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    117 STAT. 917

    (vi) Animal feeds containing over 10 percent
    by weight of milk solids provided for in
    subheading 2309.90 of the HTS.
    (C) A nonoriginating material provided for in
    heading 0805 of the HTS, or any of subheadings
    2009.11.00 through 2009.39 of the HTS, that is used in
    the production of a good provided for in any of
    subheadings 2009.11.00 through 2009.39 of the HTS, 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 of the HTS.
    (D) A nonoriginating material provided for in
    chapter 15 of the HTS that is used in the production of
    a good provided for in any of headings 1501.00.00
    through 1508, 1512, 1514, and 1515 of the HTS.
    (E) A nonoriginating material provided for in
    heading 1701 of the HTS that is used in the production
    of a good provided for in any of headings 1701 through
    1703 of the HTS.
    (F) A nonoriginating material provided for in
    chapter 17 of the HTS or in heading 1805.00.00 of the
    HTS that is used in the production of a good provided
    for in subheading 1806.10 of the HTS.
    (G) A nonoriginating material provided for in any of
    headings 2203 through 2208 of the HTS that is used in
    the production of a good provided for in heading 2207 or
    2208 of the HTS.
    (H) A nonoriginating material used in the production
    of a good provided for in any of chapters 1 through 21
    of the HTS, unless the nonoriginating material is
    provided for in a different subheading than the good for
    which origin is being determined under this section.
    (3) Goods provided for in chapters 50 through 63 of the
    hts.--
    (A) In general.--Except as provided in subparagraph
    (B), a good provided for in any of chapters 50 through
    63 of the HTS that is not an originating good because
    certain fibers or yarns used in the production of the
    component of the good that determines the tariff
    classification of the good do not undergo an applicable
    change in tariff classification set out in Annex 4.1 of
    the Agreement, shall be considered to be an originating
    good if 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 in
    the territory of Chile or the United States.

    (c) Accumulation.--
    (1) Originating goods incorporated in goods of other
    country.--Originating goods or materials of Chile or the United
    States that are incorporated into a good in the territory of the
    other country shall be considered to originate in the territory
    of the other country.

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    117 STAT. 918

    (2) Multiple procedures.--A good that is produced in the
    territory of Chile, the United States, or both, by 1 or more
    producers, is an originating good if the good satisfies the
    requirements of subsection (a) and all other applicable
    requirements of this section.

    (d) Regional Value-Content.--
    (1) In general.--For purposes of subsection (a)(2), the
    regional value-content of a good referred to in Annex 4.1 of the
    Agreement shall be calculated, at the choice of the person
    claiming preferential tariff treatment for the good, on the
    basis of the build-down method described in paragraph (2) or the
    build-up method described in paragraph (3), unless otherwise
    provided in Annex 4.1 of the Agreement.
    (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 =  ------------
    AV           100
    ------------------------------------------------------------------------

    (B) Definitions.--For purposes of subparagraph (A):
    (i) The term ``RVC'' means the regional value-
    content, expressed as a percentage.
    (ii) The term ``AV'' means the adjusted value.
    (iii) The term ``VNM'' means the value of
    nonoriginating materials used by the producer in
    the production of the good.
    (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 =  ------------
    AV           100
    ------------------------------------------------------------------------

    (B) Definitions.--For purposes of subparagraph (A):
    (i) The term ``RVC'' means the regional value-
    content, expressed as a percentage.
    (ii) The term ``AV'' means the adjusted value.
    (iii) The term ``VOM'' means the value of
    originating materials used by the producer in the
    production of the good.

    (e) Value of Materials.--
    (1) In general.--For purposes of calculating the regional
    value-content of a good under subsection (d), and for purposes
    of applying the de minimis rules under subsection (b), 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 with respect to that importation;
    (B) in the case of a material acquired in the
    territory in which the good is produced, except for a
    material to which subparagraph (C) applies, the
    producer's price actually paid or payable for the
    material;

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    117 STAT. 919

    (C) in the case of a material provided to the
    producer without charge, or at a price reflecting a
    discount or similar reduction, the sum of--
    (i) all expenses incurred in the growth,
    production, or manufacture of the material,
    including general expenses; and
    (ii) an amount for profit; or
    (D) 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.
    (2) Further adjustments to the value of materials.--
    (A) Originating materials.--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 to the location of the producer.
    (ii) Duties, taxes, and customs brokerage fees
    on the material paid in the territory of Chile,
    the United States, or both, other than duties and
    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
    byproduct.
    (B) Nonoriginating materials.--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 to the location of the producer.
    (ii) Duties, taxes, and customs brokerage fees
    on the material paid in the territory of Chile,
    the United States, or both, other than duties and
    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 Chile or the United States.

    (f) Accessories, Spare Parts, or Tools.--Accessories, spare parts,
    or tools delivered with a good that form part of the good's standard
    accessories, spare parts, or tools shall be regarded as a material used
    in the production of the good, if--
    (1) the accessories, spare parts, or tools are classified
    with and not invoiced separately from the good; and
    (2) the quantities and value of the accessories, spare
    parts, or tools are customary for the good.

    (g) Fungible Goods and Materials.--
    (1) In general.--

    [[Page 920]]

    117 STAT. 920

    (A) Claim for preferential treatment.--A person
    claiming preferential tariff treatment for a good may
    claim that a fungible good or material is originating
    either based on the physical segregation of each
    fungible good or material or by using an inventory
    management method.
    (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 Chile 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 particular
    fungible goods or materials shall continue to use that method
    for those goods or materials throughout the fiscal year of that
    person.

    (h) 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 nonoriginating materials used in the production of the good undergo
    the applicable change in tariff classification set out in Annex 4.1 of
    the Agreement, and, if the good is subject to a regional value-content
    requirement, the value of such packaging materials and containers shall
    be taken into account as originating or nonoriginating materials, as the
    case may be, in calculating the regional value-content of the good.

    (i) Packing Materials and Containers for Shipment.--Packing
    materials and containers for shipment shall be disregarded in
    determining whether--
    (1) the nonoriginating materials used in the production of
    the good undergo an applicable change in tariff classification
    set out in Annex 4.1 of the Agreement; and
    (2) the good satisfies a regional value-content requirement.

    (j) Indirect Materials.--An indirect material shall be considered to
    be an originating material without regard to where it is produced.
    (k) Transit and Transshipment.--A good that has undergone production
    necessary to qualify as an originating good under subsection (a) shall
    not be considered to be an originating good if, subsequent to that
    production, the good undergoes further production or any other operation
    outside the territory of Chile or the United States, other than
    unloading, reloading, or any other process necessary to preserve the
    good in good condition or to transport the good to the territory of
    Chile or the United States.

    (l) Textile and Apparel Goods Classifiable as Goods Put Up in
    Sets.--Notwithstanding the rules set forth in Annex 4.1 of the
    Agreement, textile and apparel goods classifiable as goods put up in
    sets for retail sale as provided for in General Rule of Interpretation 3
    of the Harmonized System shall not be considered to be originating goods
    unless each of the goods in the set is an originating good or the total
    value of the nonoriginating

    [[Page 921]]

    117 STAT. 921

    goods in the set does not exceed 10 percent of the value of the set
    determined for purposes of assessing customs duties.
    (m) Application and Interpretation.--In this section:
    (1) The basis for any tariff classification is the HTS.
    (2) [NOTE: Records.] 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
    Chile or the United States).

    (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, except that such
    value may be adjusted 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) Fungible goods or fungible materials.--The terms
    ``fungible goods'' and ``fungible materials'' mean goods or
    materials, as the case may be, that are interchangeable for
    commercial purposes and the properties of which are essentially
    identical.
    (3) Generally accepted accounting principles.--The term
    ``generally accepted accounting principles'' means the
    principles, rules, and procedures, including both broad and
    specific guidelines, that define the accounting practices
    accepted in the territory of Chile or the United States, as the
    case may be.
    (4) Goods wholly obtained or produced entirely in the
    territory of chile, the united states, or both.--The term
    ``goods wholly obtained or produced entirely in the territory of
    Chile, the United States, or both'' means--
    (A) mineral goods extracted in the territory of
    Chile, the United States, or both;
    (B) vegetable goods, as such goods are defined in
    the Harmonized System, harvested in the territory of
    Chile, the United States, or both;
    (C) live animals born and raised in the territory of
    Chile, the United States, or both;
    (D) goods obtained from hunting, trapping, or
    fishing in the territory of Chile, the United States, or
    both;
    (E) goods (fish, shellfish, and other marine life)
    taken from the sea by vessels registered or recorded
    with Chile or the United States and flying the flag of
    that country;
    (F) goods produced on board factory ships from the
    goods referred to in subparagraph (E), if such factory
    ships are registered or recorded with Chile or the
    United States and fly the flag of that country;
    (G) goods taken by Chile or the United States or a
    person of Chile or the United States from the seabed or
    beneath the seabed outside territorial waters, if Chile
    or the United States has rights to exploit such seabed;
    (H) goods taken from outer space, if the goods are
    obtained by Chile or the United States or a person of

    [[Page 922]]

    117 STAT. 922

    Chile or the United States and not processed in the
    territory of a country other than Chile or the United
    States;
    (I) waste and scrap derived from--
    (i) production in the territory of Chile, the
    United States, or both; or
    (ii) used goods collected in the territory of
    Chile, the United States, or both, if such goods
    are fit only for the recovery of raw materials;
    (J) recovered goods derived in the territory of
    Chile or the United States from used goods, and used in
    the territory of that country in the production of
    remanufactured goods; and
    (K) goods produced in the territory of Chile, the
    United States, or both, exclusively--
    (i) from goods referred to in any of
    subparagraphs (A) through (I), or
    (ii) from the derivatives of goods referred to
    in clause (i),
    at any stage of production.
    (5) Harmonized system.--The term ``Harmonized System'' means
    the Harmonized Commodity Description and Coding System.
    (6) Indirect material.--The term ``indirect material'' means
    a good used in the production, testing, or inspection of a good
    but not physically incorporated into the good, or a good used in
    the maintenance of buildings or the operation of equipment
    associated with the production of a good, including--
    (A) fuel and energy;
    (B) tools, dies, and molds;
    (C) spare parts and materials used in the
    maintenance of equipment or buildings;
    (D) lubricants, greases, compounding materials, and
    other materials used in production or used to operate
    equipment or buildings;
    (E) gloves, glasses, footwear, clothing, safety
    equipment, and supplies;
    (F) equipment, devices, and supplies used for
    testing or inspecting the good;
    (G) catalysts and solvents; and
    (H) any other goods that are not incorporated into
    the good but the use of which in the production of the
    good can reasonably be demonstrated to be a part of that
    production.
    (7) Material.--The term ``material'' means a good that is
    used in the production of another good, including a part,
    ingredient, or indirect material.
    (8) Material that is self-produced.--The term ``material
    that is self-produced'' means a material that is an originating
    good produced by a producer of a good and used in the production
    of that good.
    (9) Nonoriginating good or nonoriginating material.--The
    terms ``nonoriginating good'' and ``nonoriginating material''
    mean a good or material, as the case may be, that does not
    qualify as an originating good under this section.
    (10) Packing materials and containers for shipment.--The
    term ``packing materials and containers for shipment''

    [[Page 923]]

    117 STAT. 923

    means the goods used to protect a good during its
    transportation, and does not include the packaging materials and
    containers in which a good is packaged for retail sale.
    (11) Preferential tariff treatment.--The term ``preferential
    tariff treatment'' means the customs duty rate that is
    applicable to an originating good pursuant to chapter 3 of the
    Agreement.
    (12) Producer.--The term ``producer'' means a person who
    engages in the production of a good in the territory of Chile or
    the United States.
    (13) Production.--The term ``production'' means growing,
    mining, harvesting, fishing, raising, trapping, hunting,
    manufacturing, processing, assembling, or disassembling a good.
    (14) Recovered goods.--
    (A) In general.--The term ``recovered goods'' means
    materials in the form of individual parts that are the
    result of--
    (i) the complete disassembly of used goods
    into individual parts; and
    (ii) the cleaning, inspecting, testing, or
    other processing of those parts as necessary for
    improvement to sound working condition by one or
    more of the processes described in subparagraph
    (B), in order for such parts to be assembled with
    other parts, including other parts that have
    undergone the processes described in this
    paragraph, in the production of a remanufactured
    good.
    (B) Processes.--The processes referred to in
    subparagraph (A)(ii) are welding, flame spraying,
    surface machining, knurling, plating, sleeving, and
    rewinding.
    (15) Remanufactured good.--The term ``remanufactured good''
    means an industrial good assembled in the territory of Chile or
    the United States, that is listed in Annex 4.18 of the
    Agreement, and--
    (A) is entirely or partially comprised of recovered
    goods;
    (B) has the same life expectancy and meets the same
    performance standards as a new good; and
    (C) enjoys the same factory warranty as such a new
    good.

    (o) Presidential Proclamation Authority.--
    (1) In general.--The President is authorized to proclaim, as
    part of the HTS--
    (A) the provisions set out in Annex 4.1 of the
    Agreement; and
    (B) any additional subordinate category necessary to
    carry out this title consistent with the Agreement.
    (2) Modifications.--
    (A) In general.--Subject to the consultation and
    layover provisions of section 103(a), the President may
    proclaim modifications to the provisions proclaimed
    under the authority of paragraph (1)(A), other than
    provisions of chapters 50 through 63 of the HTS, as
    included in Annex 4.1 of the Agreement.
    (B) Additional proclamations.--Notwithstanding
    subparagraph (A), and subject to the consultation and
    layover provisions of section 103(a), the President may
    proclaim--

    [[Page 924]]

    117 STAT. 924

    (i) modifications to the provisions proclaimed
    under the authority of paragraph (1)(A) that are
    necessary to implement an agreement with Chile
    pursuant to article 3.20(5) of the Agreement; and
    (ii) before the 1st anniversary of the date of
    the enactment of this Act, modifications to
    correct any typographical, clerical, or other
    nonsubstantive technical error regarding the
    provisions of chapters 50 through 63 of the HTS,
    as included in Annex 4.1 of the Agreement.

    SEC. 203. [NOTE: 19 USC 3805 note.] DRAWBACK.

    (a) Definition of a Good Subject to Chile FTA Drawback.--For
    purposes of this Act and the amendments made by subsection (b), the term
    ``good subject to Chile FTA drawback'' means any imported good other
    than the following:
    (1) A good entered under bond for transportation and
    exportation to Chile.
    (2)(A) A good exported to Chile in the same condition as
    when imported into the United States.
    (B) For purposes of subparagraph (A)--
    (i) processes such as testing, cleaning, repacking,
    inspecting, sorting, or marking a good, or preserving it
    in its same condition, shall not be considered to change
    the condition of the good; and
    (ii) if a good described in subparagraph (A) is
    commingled with fungible goods and exported in the same
    condition, the origin of the good for the purposes of
    subsection (j)(1) of section 313 of the Tariff Act of
    1930 (19 U.S.C. 1313(j)(1)) may be determined on the
    basis of the inventory methods provided for in the
    regulations implementing this title.
    (3) A good--
    (A) that is--
    (i) deemed to be exported from the United
    States;
    (ii) used as a material in the production of
    another good that is deemed to be exported to
    Chile; or
    (iii) substituted for by a good of the same
    kind and quality that is used as a material in the
    production of another good that is deemed to be
    exported to Chile; and
    (B) that is delivered--
    (i) to a duty-free shop;
    (ii) for ship's stores or supplies for a ship
    or aircraft; or
    (iii) for use in a project undertaken jointly
    by the United States and Chile and destined to
    become the property of the United States.
    (4) A good exported to Chile for which a refund of customs
    duties is granted by reason of--
    (A) the failure of the good to conform to sample or
    specification; or
    (B) the shipment of the good without the consent of
    the consignee.
    (5) A good that qualifies under the rules of origin set out
    in section 202 that is--
    (A) exported to Chile;

    [[Page 925]]

    117 STAT. 925

    (B) used as a material in the production of another
    good that is exported to Chile; or
    (C) substituted for by a good of the same kind and
    quality that is used as a material in the production of
    another good that is exported to Chile.

    (b) Consequential Amendments.--
    (1) Bonded manufacturing warehouses.--Section 311 of the
    Tariff Act of 1930 (19 U.S.C. 1311) is amended by adding at the
    end the following new paragraph:

    ``No article manufactured in a bonded warehouse from materials that
    are goods subject to Chile FTA drawback, as defined in section 203(a) of
    the United States-Chile Free Trade Agreement Implementation Act, may be
    withdrawn from warehouse for exportation to Chile without assessment of
    a duty on the materials in their condition and quantity, and at their
    weight, at the time of importation into the United States. The duty
    shall be paid before the 61st day after the date of exportation, except
    that the duty may be waived or reduced by--
    ``(1) 100 percent during the 8-year period beginning on
    January 1, 2004;
    ``(2) 75 percent during the 1-year period beginning on
    January 1, 2012;
    ``(3) 50 percent during the 1-year period beginning on
    January 1, 2013; and
    ``(4) 25 percent during the 1-year period beginning on
    January 1, 2014.''.
    (2) Bonded smelting and refining warehouses.--Section 312 of
    the Tariff Act of 1930 (19 U.S.C. 1312) is amended--
    (A) in paragraph (1) of subsection (b), by striking
    ``except that'' and all that follows through
    subparagraph (B) and inserting the following: ``except
    that--
    ``(A) in the case of a withdrawal for exportation of
    such a product to a NAFTA country, as defined in section
    2(4) of the North American Free Trade Agreement
    Implementation Act, if any of the imported metal-bearing
    materials are goods subject to NAFTA drawback, as
    defined in section 203(a) of that Act, the duties on the
    materials shall be paid, and the charges against the
    bond canceled, before the 61st day after the date of
    exportation; but upon the presentation, before such 61st
    day, of satisfactory evidence of the amount of any
    customs duties paid to the NAFTA country on the product,
    the duties on the materials may be waived or reduced
    (subject to section 508(b)(2)(B)) in an amount that does
    not exceed the lesser of--
    ``(i) the total amount of customs duties owed
    on the materials on importation into the United
    States, or
    ``(ii) the total amount of customs duties paid
    to the NAFTA country on the product, and
    ``(B) in the case of a withdrawal for exportation of
    such a product to Chile, if any of the imported metal-
    bearing materials are goods subject to Chile FTA
    drawback, as defined in section 203(a) of the United
    States-Chile Free Trade Agreement Implementation Act,
    the duties on the materials shall be paid, and the
    charges against the

    [[Page 926]]

    117 STAT. 926

    bond canceled, before the 61st day after the date of
    exportation, except that the duties may be waived or
    reduced by--
    ``(i) 100 percent during the 8-year period
    beginning on January 1, 2004,
    ``(ii) 75 percent during the 1-year period
    beginning on January 1, 2012,
    ``(iii) 50 percent during the 1-year period
    beginning on January 1, 2013, and
    ``(iv) 25 percent during the 1-year period
    beginning on January 1, 2014, or'';
    (B) in paragraph (4) of subsection (b), by striking
    ``except that'' and all that follows through
    subparagraph (B) and inserting the following: ``except
    that--
    ``(A) in the case of a withdrawal for exportation of
    such a product to a NAFTA country, as defined in section
    2(4) of the North American Free Trade Agreement
    Implementation Act, if any of the imported metal-bearing
    materials are goods subject to NAFTA drawback, as
    defined in section 203(a) of that Act, the duties on the
    materials shall be paid, and the charges against the
    bond canceled, before the 61st day after the date of
    exportation; but upon the presentation, before such 61st
    day, of satisfactory evidence of the amount of any
    customs duties paid to the NAFTA country on the product,
    the duties on the materials may be waived or reduced
    (subject to section 508(b)(2)(B)) in an amount that does
    not exceed the lesser of--
    ``(i) the total amount of customs duties owed
    on the materials on importation into the United
    States, or
    ``(ii) the total amount of customs duties paid
    to the NAFTA country on the product, and
    ``(B) in the case of a withdrawal for exportation of
    such a product to Chile, if any of the imported metal-
    bearing materials are goods subject to Chile FTA
    drawback, as defined in section 203(a) of the United
    States-Chile Free Trade Agreement Implementation Act,
    the duties on the materials shall be paid, and the
    charges against the bond canceled, before the 61st day
    after the date of exportation, except that the duties
    may be waived or reduced by--
    ``(i) 100 percent during the 8-year period
    beginning on January 1, 2004,
    ``(ii) 75 percent during the 1-year period
    beginning on January 1, 2012,
    ``(iii) 50 percent during the 1-year period
    beginning on January 1, 2013, and
    ``(iv) 25 percent during the 1-year period
    beginning on January 1, 2014, or''; and
    (C) in subsection (d), in the matter preceding
    paragraph (1), by striking ``except that'' and all that
    follows through the end of paragraph (2) and inserting
    the following: ``except that--
    ``(1) in the case of a withdrawal for exportation to a NAFTA
    country, as defined in section 2(4) of the North American Free
    Trade Agreement Implementation Act, if any of the imported
    metal-bearing materials are goods subject to NAFTA drawback,

    [[Page 927]]

    117 STAT. 927

    as defined in section 203(a) of that Act, charges against the
    bond shall be paid before the 61st day after the date of
    exportation; but upon the presentation, before such 61st day, of
    satisfactory evidence of the amount of any customs duties paid
    to the NAFTA country on the product, the bond shall be credited
    (subject to section 508(b)(2)(B)) in an amount not to exceed the
    lesser of--
    ``(A) the total amount of customs duties paid or
    owed on the materials on importation into the United
    States, or
    ``(B) the total amount of customs duties paid to the
    NAFTA country on the product; and
    ``(2) in the case of a withdrawal for exportation to Chile,
    if any of the imported metal-bearing materials are goods subject
    to Chile FTA drawback, as defined in section 203(a) of the
    United States-Chile Free Trade Agreement Implementation Act,
    charges against the bond shall be paid before the 61st day after
    the date of exportation, and the bond shall be credited in an
    amount equal to--
    ``(A) 100 percent of the total amount of customs
    duties paid or owed on the materials on importation into
    the United States during the 8-year period beginning on
    January 1, 2004,
    ``(B) 75 percent of the total amount of customs
    duties paid or owed on the materials on importation into
    the United States during the 1-year period beginning on
    January 1, 2012,
    ``(C) 50 percent of the total amount of customs
    duties paid or owed on the materials on importation into
    the United States during the 1-year period beginning on
    January 1, 2013, and
    ``(D) 25 percent of the total amount of customs
    duties paid or owed on the materials on importation into
    the United States during the 1-year period beginning on
    January 1, 2014.''.
    (3) Drawback.--Section 313 of the Tariff Act of 1930 (19
    U.S.C. 1313) is amended--
    (A) in paragraph (4) of subsection (j)--
    (i) by striking ``(4)'' and inserting
    ``(4)(A)''; and
    (ii) by adding at the end the following new
    subparagraph:
    ``(B) [NOTE: Effective date.] Beginning on January 1,
    2015, the exportation to Chile of merchandise that is fungible
    with and substituted for imported merchandise, other than
    merchandise described in paragraphs (1) through (5) of section
    203(a) of the United States-Chile Free Trade Agreement
    Implementation Act, shall not constitute an exportation for
    purposes of paragraph (2). The preceding sentence shall not be
    construed to permit the substitution of unused drawback under
    paragraph (2) of this subsection with respect to merchandise
    described in paragraph (2) of section 203(a) of the United
    States-Chile Free Trade Agreement Implementation Act.'';
    (B) in subsection (n)--
    (i) by striking ``(n)'' and inserting the
    following:

    ``(n) Refunds, Waivers, or Reductions Under Certain Free Trade
    Agreements.--'';
    (ii) in paragraph (1)--

    [[Page 928]]

    117 STAT. 928

    (I) by striking ``; and'' at the end
    of subparagraph (B);
    (II) by striking the period at the
    end of subparagraph (C) and inserting
    ``; and''; and
    (III) by adding at the end the
    following new subparagraph:
    ``(D) the term `good subject to Chile FTA drawback' has the
    meaning given that term in section 203(a) of the United States-
    Chile Free Trade Agreement Implementation Act.''; and
    (iii) by adding the following new paragraph at
    the end:

    ``(4)(A) For purposes of subsections (a), (b), (f), (h), (j)(2),
    (p), and (q), if an article that is exported to Chile is a good subject
    to Chile FTA drawback, no customs duties on the good may be refunded,
    waived, or reduced, except as provided in subparagraph (B).
    ``(B) The customs duties referred to in subparagraph (A) may be
    refunded, waived, or reduced by--
    ``(i) 100 percent during the 8-year period beginning on
    January 1, 2004;
    ``(ii) 75 percent during the 1-year period beginning on
    January 1, 2012;
    ``(iii) 50 percent during the 1-year period beginning on
    January 1, 2013; and
    ``(iv) 25 percent during the 1-year period beginning on
    January 1, 2014.''; and
    (C) in subsection (o)--
    (i) by striking ``(o)'' and inserting the
    following:

    ``(o) Special Rules for Certain Vessels and Imported Materials.--'';
    and
    (ii) by adding at the end the following new
    paragraphs:

    ``(3) For purposes of subsection (g), if--
    ``(A) a vessel is built for the account and ownership of a
    resident of Chile or the Government of Chile, and
    ``(B) imported materials that are used in the construction
    and equipment of the vessel are goods subject to Chile FTA
    drawback, as defined in section 203(a) of the United States-
    Chile Free Trade Agreement Implementation Act,

    no customs duties on such materials may be refunded, waived, or reduced,
    except as provided in paragraph (4).
    ``(4) The customs duties referred to in paragraph (3) may be
    refunded, waived or reduced by--
    ``(A) 100 percent during the 8-year period beginning on
    January 1, 2004;
    ``(B) 75 percent during the 1-year period beginning on
    January 1, 2012;
    ``(C) 50 percent during the 1-year period beginning on
    January 1, 2013; and
    ``(D) 25 percent during the 1-year period beginning on
    January 1, 2014.''.
    (4) Manipulation in warehouse.--Section 562 of the Tariff
    Act of 1930 (19 U.S.C. 1562) is amended--
    (A) in paragraph (3), by striking ``to a NAFTA
    country'' and inserting ``to Chile, to a NAFTA
    country,'';
    (B) by striking ``and'' at the end of paragraph
    (4)(B);

    [[Page 929]]

    117 STAT. 929

    (C) by striking the period at the end of paragraph
    (5) and inserting ``; and''; and
    (D) by inserting after paragraph (5) the following:
    ``(6)(A) without payment of duties for exportation to Chile,
    if the merchandise is of a kind described in any of paragraphs
    (1) through (5) of section 203(a) of the United States-Chile
    Free Trade Agreement Implementation Act; and
    ``(B) for exportation to Chile if the merchandise consists
    of goods subject to Chile FTA drawback, as defined in section
    203(a) of the United States-Chile Free Trade Agreement
    Implementation Act, except that--
    ``(i) the merchandise may not be withdrawn from
    warehouse without assessment of a duty on the
    merchandise in its condition and quantity, and at its
    weight, at the time of withdrawal from the warehouse
    with such additions to, or deductions from, the final
    appraised value as may be necessary by reason of a
    change in condition, and
    ``(ii) duty shall be paid on the merchandise before
    the 61st day after the date of exportation, except that
    such duties may be waived or reduced by--
    ``(I) 100 percent during the 8-year period
    beginning on January 1, 2004,
    ``(II) 75 percent during the 1-year period
    beginning on January 1, 2012,
    ``(III) 50 percent during the 1-year period
    beginning on January 1, 2013, and
    ``(IV) 25 percent during the 1-year period
    beginning on January 1, 2014.''.
    (5) Foreign trade zones.--Section 3(a) of the Act of June
    18, 1934 (commonly known as the ``Foreign Trade Zones Act''; 19
    U.S.C. 81c(a)) is amended by striking the end period and
    inserting the following: ``: Provided further, That no
    merchandise that consists of goods subject to Chile FTA
    drawback, as defined in section 203(a) of the United States-
    Chile Free Trade Agreement Implementation Act, that is
    manufactured or otherwise changed in condition shall be exported
    to Chile without an assessment of a duty on the merchandise in
    its condition and quantity, and at its weight, at the time of
    its exportation (or if the privilege in the first proviso to
    this subsection was requested, an assessment of a duty on the
    merchandise in its condition and quantity, and at its weight, at
    the time of its admission into the zone) and the payment of the
    assessed duty before the 61st day after the date of exportation
    of the article, except that the customs duty may be waived or
    reduced by (1) 100 percent during the 8-year period beginning on
    January 1, 2004; (2) 75 percent during the 1-year period
    beginning on January 1, 2012; (3) 50 percent during the 1-year
    period beginning on January 1, 2013; and (4) 25 percent during
    the 1-year period beginning on January 1, 2014.''.

    (c) Inapplicability to Countervailing and Antidumping Duties.--
    Nothing in this section or the amendments made by this section shall be
    considered to authorize the refund, waiver, or reduction of
    countervailing duties or antidumping duties imposed on an imported good.

    [[Page 930]]

    117 STAT. 930

    SEC. 204. [NOTE: 19 USC 3805 note.] CUSTOMS USER FEES.

    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation
    Act of 1985 (19 U.S.C. 58c(b)) is amended by inserting after paragraph
    (11) the following:
    ``(12) 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-Chile Free Trade Agreement Implementation Act. Any
    service for which an exemption from such fee is provided by reason of
    this paragraph may not be funded with money contained in the Customs
    User Fee Account.''.

    SEC. 205. [NOTE: 19 USC 3805 note.] DISCLOSURE OF INCORRECT
    INFORMATION; DENIAL OF PREFERENTIAL TARIFF TREATMENT; FALSE
    CERTIFICATES OF ORIGIN.

    (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 (6) as paragraph (7);
    and
    (B) by inserting after paragraph (5) the following
    new paragraph:
    ``(6) Prior disclosure regarding claims under the united
    states-chile 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-Chile Free Trade
    Agreement Implementation Act if the importer, in accordance with
    regulations issued by the Secretary of the Treasury, voluntarily
    makes a corrected declaration and pays any duties owing.''; and
    (2) by adding at the end the following new subsection:

    ``(g) False Certifications of Origin Under the United States-Chile
    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 Chile FTA Certificate of Origin (as defined
    in section 508(f)(1)(B) of this Act that a good exported from
    the United States qualifies as an originating good under the
    rules of origin set out in section 202 of the United States-
    Chile Free Trade Agreement Implementation
    Act. [NOTE: Applicability.] The procedures and penalties of
    this section that apply to a violation of subsection (a) also
    apply to a violation of this subsection.
    ``(2) Immediate and voluntary disclosure of incorrect
    information.--No penalty shall be imposed under this subsection
    if, immediately after an exporter or producer that issued a
    Chile FTA Certificate of Origin has reason to believe that such
    certificate 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 certificate
    was issued.
    ``(3) Exception.--A person may not be considered to have
    violated paragraph (1) if--
    ``(A) the information was correct at the time it was
    provided in a Chile FTA Certificate of Origin but was
    later rendered incorrect due to a change in
    circumstances; and

    [[Page 931]]

    117 STAT. 931

    ``(B) the person immediately and voluntarily
    provides written notice of the change in circumstances
    to all persons to whom the person provided the
    certificate.''.

    (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:
    ``(g) Denial of Preferential Tariff Treatment Under United States-
    Chile Free Trade Agreement.--If the Bureau of Customs and Border
    Protection or the Bureau of Immigration and Customs Enforcement finds
    indications of a pattern of conduct by an importer of false or
    unsupported representations that goods qualify under the rules of origin
    set out in section 202 of the United States-Chile Free Trade Agreement
    Implementation Act, the Bureau of Customs and Border Protection, in
    accordance with regulations issued by the Secretary of the Treasury, may
    deny preferential tariff treatment under the United States-Chile Free
    Trade Agreement to entries of identical goods imported by that person
    until the person establishes to the satisfaction of the Bureau of
    Customs and Border Protection that representations of that person are in
    conformity with such section 202.''.

    SEC. 206. [NOTE: 19 USC 3805 note.] RELIQUIDATION OF ENTRIES.

    Subsection (d) of section 520 of the Tariff Act of 1930 (19 U.S.C.
    1520(d)) is amended--
    (1) by striking ``(d)'' and inserting the following:

    ``(d) Goods Qualifying Under Free Trade Agreement Rules of Origin.--
    '';
    (2) in the matter preceding paragraph (1), by inserting ``or
    section 202 of the United States-Chile Free Trade Agreement
    Implementation Act'' after ``Act'';
    (3) in paragraph (1), by striking ``those'' and inserting
    ``the applicable''; and
    (4) in paragraph (2), by inserting before the semicolon ``,
    or other certificates of origin, as the case may be''.

    SEC. 207. [NOTE: 19 USC 3805 note.] RECORDKEEPING REQUIREMENTS.

    Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
    (1) by striking the heading of subsection (b) and inserting
    the following: ``Exportations to NAFTA Countries.--''; and
    (2) by adding at the end the following:

    ``(f) Certificates of Origin for Goods Exported Under the United
    States-Chile 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) if applicable, the purchase, cost, and
    value of, and payment for, all materials,
    including recovered goods, used in the production
    of the good; and
    ``(iii) if applicable, the production of the
    good in the form in which it was exported.
    ``(B) Chile fta certificate of origin.--The term
    `Chile FTA Certificate of Origin' means the
    certification, established under article 4.13 of the
    United States-Chile

    [[Page 932]]

    117 STAT. 932

    Free Trade Agreement, that a good qualifies as an
    originating good under such Agreement.
    ``(2) Exports to chile.--Any person who completes and issues
    a Chile FTA Certificate 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
    Certificate or copies thereof).
    ``(3) Retention period.--Records and supporting documents
    shall be kept by the person who issued a Chile FTA Certificate
    of Origin for at least 5 years after the date on which the
    certificate was issued.

    ``(g) Penalties.--Any person who fails to retain records and
    supporting documents required by subsection (f) or the regulations
    issued to implement that subsection shall be liable for the greater of--
    ``(1) a civil penalty not to exceed $10,000; or
    ``(2) the general record keeping penalty that applies under
    the customs laws of the United States.''.

    SEC. 208. [NOTE: 19 USC 3805 note.] ENFORCEMENT OF TEXTILE AND APPAREL
    RULES OF ORIGIN.

    (a) Action During Verification.--If the Secretary of the Treasury
    requests the Government of Chile to conduct a verification pursuant to
    article 3.21 of the Agreement for purposes of determining that--
    (1) an exporter or producer in Chile is complying with
    applicable customs laws, regulations, and procedures regarding
    trade in textile and apparel goods, or
    (2) claims that textile or apparel goods exported or
    produced by such exporter or producer--
    (A) qualify as originating goods under section 202
    of this Act, or
    (B) are goods of Chile,
    are accurate,

    the President may direct the Secretary to take appropriate action
    described in subsection (b) while the verification is being conducted.
    (b) Appropriate Action Described.--Appropriate action under
    subsection (a) includes--
    (1) suspension of liquidation of entries of textile and
    apparel goods exported or produced by the person that is the
    subject of the verification, in a case in which the request for
    verification was based on a reasonable suspicion of unlawful
    activity related to such goods; and
    (2) publication of the name of the person that is the
    subject of the verification.

    (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) is
    insufficient to make a determination under subsection (a), the President
    may direct the Secretary to take appropriate action described in
    subsection (d) until such time as the Secretary receives information
    sufficient to make a determination under subsection (a) or until such
    earlier date as the President may direct.
    (d) Appropriate Action Described.--Appropriate action under
    subsection (c) includes--

    [[Page 933]]

    117 STAT. 933

    (1) publication of the identity of the person that is the
    subject of the verification;
    (2) denial of preferential tariff treatment under the
    Agreement to any textile or apparel goods exported or produced
    by the person that is the subject of the verification; and
    (3) denial of entry into the United States of any textile or
    apparel goods exported or produced by the person that is the
    subject of the verification.

    SEC. 209. [NOTE: 19 USC 3805 note.] CONFORMING AMENDMENTS.

    Section 508(b)(2)(B)(i)(I) of the Tariff Act of 1930 (19 U.S.C.
    1508(b)(2)(B)(i)(I)) is amended--
    (1) by striking ``the last paragraph of section 311'' and
    inserting ``the eleventh paragraph of section 311''; and
    (2) by striking ``the last proviso to section 3(a)'' and
    inserting ``the proviso preceding the last proviso to section
    3(a)''.

    SEC. 210. [NOTE: 19 USC 3805 note.] 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, and sections
    203 and 204;
    (2) amendments made by the sections referred to in paragraph
    (1); and
    (3) proclamations issued under section 202(o).

    TITLE III--RELIEF FROM IMPORTS

    SEC. 301. [NOTE: 19 USC 3805 note.] DEFINITIONS.

    In this title:
    (1) Commission.--The term ``Commission'' means the United
    States International Trade Commission.
    (2) Chilean article.--The term ``Chilean article'' means an
    article that qualifies as an originating good under section
    202(a) of this Act.
    (3) Chilean textile or apparel article.--The term ``Chilean
    textile or apparel article'' means an article--
    (A) that is 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)); and
    (B) that is a Chilean article.

    Subtitle A--Relief From Imports Benefiting From the Agreement

    SEC. 311. [NOTE: 19 USC 3805 note.] COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--A petition requesting action under this
    subtitle for the purpose of adjusting to the obligations of the United
    States under the Agreement may be filed with the Commission by an
    entity, including a trade association, firm, certified or recognized
    union, or group of workers, that is representative of an
    industry. [NOTE: Records.] The Commission shall transmit a copy of any

    [[Page 934]]

    117 STAT. 934

    petition filed under this subsection to the United States Trade
    Representative.
    (b) Investigation and Determination.--Upon the filing of a petition
    under subsection (a), the Commission, unless subsection (d) applies,
    shall promptly initiate an investigation to determine whether, as a
    result of the reduction or elimination of a duty provided for under the
    Agreement, a Chilean 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 Chilean
    article constitute a substantial cause of serious injury or threat
    thereof to the domestic industry producing an article that is like, or
    directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202
    of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any
    investigation initiated under subsection (b):
    (1) Paragraphs (1)(B) and (3) of subsection (b).
    (2) Subsection (c).
    (3) Subsection (i).

    (d) Articles Exempt From Investigation.--No investigation may be
    initiated under this section with respect to any Chilean article if,
    after the date that the Agreement enters into force, import relief has
    been provided with respect to that Chilean article under this subtitle,
    or if, at the time the petition is filed, the article is subject to
    import relief under chapter 1 of title II of the Trade Act of 1974.

    SEC. 312. [NOTE: 19 USC 3805 note.] COMMISSION ACTION ON PETITION.

    (a) Determination.--Not [NOTE: Deadline.] later than 120 days
    after the date on which an investigation is initiated under section
    311(b) with respect to a petition, the Commission shall make the
    determination required under that section.

    (b) Applicable Provisions.--For purposes of this subtitle, the
    provisions of paragraphs (1), (2), and (3) of section 330(d) of the
    Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be
    applied with respect to determinations and findings made under this
    section as if such determinations and findings were made under section
    202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination
    Affirmative.--If the determination made by the Commission under
    subsection (a) with respect to imports of an article is affirmative, or
    if the President may consider a determination of the Commission to be an
    affirmative determination as provided for under paragraph (1) of section
    330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)), the Commission
    shall find, and recommend to the President in the report required under
    subsection (d), the amount of import relief that is necessary to remedy
    or prevent the injury found by the Commission in the determination and
    to facilitate the efforts of the domestic industry to make a positive
    adjustment to import competition. The import relief recommended by the
    Commission under this subsection shall be limited to the relief
    described in section 313(c). Only those members of the Commission who
    voted in the affirmative under subsection (a) are eligible to vote on
    the proposed action to remedy or prevent the injury found by the
    Commission. Members of the Commission who did not vote in the
    affirmative may submit, in the report required

    [[Page 935]]

    117 STAT. 935

    under subsection (d), separate views regarding what action, if any,
    should be taken to remedy or prevent the injury.

    (d) Report to President.--Not [NOTE: Deadline.] later than the
    date that is 30 days after the date on which a determination is made
    under subsection (a) with respect to an investigation, the Commission
    shall submit to the President a report that includes--
    (1) the determination made under subsection (a) and an
    explanation of the basis for the determination;
    (2) if the determination under subsection (a) is
    affirmative, any findings and recommendations for import relief
    made under subsection (c) and an explanation of the basis for
    each recommendation; and
    (3) any dissenting or separate views by members of the
    Commission regarding the determination and recommendation
    referred to in paragraphs (1) and (2).

    (e) Public Notice.--Upon [NOTE: Federal Register,
    publication.] submitting a report to the President under subsection
    (d), the Commission shall promptly make public such report (with the
    exception of information which the Commission determines to be
    confidential) and shall cause a summary thereof to be published in the
    Federal Register.

    SEC. 313. [NOTE: 19 USC 3805 note.] PROVISION OF RELIEF.

    (a) In General.--Not [NOTE: Deadline. President.] later than the
    date that is 30 days after the date on which the President receives the
    report of the Commission in which the Commission's determination under
    section 312(a) is affirmative, or which contains a determination under
    section 312(a) that the President considers to be affirmative under
    paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C.
    1330(d)(1)), the President, subject to subsection (b), shall provide
    relief from imports of the article that is the subject of such
    determination to the extent that the President determines necessary to
    remedy or prevent the injury found by the Commission and to facilitate
    the efforts of the domestic industry to make a positive adjustment to
    import competition.

    (b) Exception.--The President is not required to provide import
    relief under this section if the President determines that the provision
    of the import relief will not provide greater economic and social
    benefits than costs.
    (c) Nature of Relief.--
    (1) In general.--The import relief that the President is
    authorized to provide under this section with respect to imports
    of an article is as follows:
    (A) The suspension of any further reduction provided
    for under Annex 3.3 of the Agreement in the duty imposed
    on such article.
    (B) An increase in the rate of duty imposed on such
    article to a level that does not exceed the lesser of--
    (i) the column 1 general rate of duty imposed
    under the HTS on like articles at the time the
    import relief is provided; or
    (ii) the column 1 general rate of duty imposed
    under the HTS on like articles on the day before
    the date on which the Agreement enters into force.
    (2) Progressive liberalization.--If the period for which
    import relief is provided under this section is greater than

    [[Page 936]]

    117 STAT. 936

    1 year, the President shall provide for the progressive
    liberalization (described in article 8.2(2) of the Agreement) of
    such relief at regular intervals during the period of its
    application.

    (d) Period of Relief.--
    (1) In general.--Subject to paragraph (2), the import relief
    that the President is authorized to provide under this section,
    including any extensions thereof, may not, in the aggregate,
    exceed 3 years.
    (2) Extension.--
    (A) In general.--If the initial period for any
    import relief provided under this section is less than 3
    years, the President, after receiving an affirmative
    determination from the Commission under subparagraph
    (B), may extend the effective period of any import
    relief provided under this section, subject to the
    limitation under paragraph (1), if the President
    determines that--
    (i) the import relief continues to be
    necessary to remedy or prevent serious injury and
    to facilitate adjustment; and
    (ii) there is evidence that the industry is
    making a positive adjustment to import
    competition.
    (B) Action by commission.--(i) Upon a petition on
    behalf of the industry concerned, filed with the
    Commission not earlier than the date which is 9 months,
    and not later than the date which is 6 months, before
    the date on which any action taken under subsection (a)
    is to terminate, the Commission shall conduct an
    investigation to determine whether action under this
    section continues to be necessary to remedy or prevent
    serious injury and whether there is evidence that the
    industry is making a positive adjustment to import
    competition.
    (ii) [NOTE: Notice. Federal Register,
    publication.] The Commission shall publish notice of
    the commencement of any proceeding under this
    subparagraph in the Federal Register and shall, within a
    reasonable time thereafter, hold a public hearing at
    which the Commission shall afford interested parties and
    consumers an opportunity to be present, to present
    evidence, and to respond to the presentations of other
    parties and consumers, and otherwise to be heard.
    (iii) The [NOTE: Reports. Deadline.] Commission
    shall transmit to the President a report on its
    investigation and determination under this subparagraph
    not later than 60 days before the action under
    subsection (a) is to terminate, unless the President
    specifies a different date.

    (e) Rate After Termination of Import Relief.--When import relief
    under this section is terminated with respect to an article--
    (1) the rate of duty on that article after such termination
    and on or before December 31 of the year in which such
    termination occurs shall be the rate that, according to the
    Schedule of the United States in Annex 3.3 of the Agreement for
    the staged elimination of the tariff, would have been in effect
    1 year after the provision of relief under subsection (a); and
    (2) the rate of duty for that article after December 31 of
    the year in which termination occurs shall be, at the discretion
    of the President, either--

    [[Page 937]]

    117 STAT. 937

    (A) the applicable rate of duty for that article set
    out in the Schedule of the United States in Annex 3.3 of
    the Agreement; or
    (B) the rate of duty resulting from the elimination
    of the tariff in equal annual stages ending on the date
    set out in the United States Schedule in Annex 3.3 of
    the Agreement for the elimination of the tariff.

    (f) Articles Exempt From Relief.--No import relief may be provided
    under this section on any article subject to import relief under chapter
    1 of title II of the Trade Act of 1974.

    SEC. 314. [NOTE: 19 USC 3805 note.] TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--No import relief may be provided under this
    subtitle after the date that is 10 years after the date on which the
    Agreement enters into force.
    (b) Exception.--If an article for which relief is provided under
    this subtitle is an article for which the period for tariff elimination,
    set out in the Schedule of the United States to Annex 3.3 of the
    Agreement, is 12 years, no relief under this subtitle may be provided
    for that article after the date that is 12 years after the date on which
    the Agreement enters into force.

    SEC. 315. [NOTE: 19 USC 3805 note.] COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C.
    2133), any import relief provided by the President under section 313
    shall be treated as action taken under chapter 1 of title II of such
    Act.

    SEC. 316. [NOTE: 19 USC 3805 note.] 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-Chile Free Trade Agreement
    Implementation Act''.

    Subtitle B--Textile and Apparel Safeguard Measures

    SEC. 321. [NOTE: President. 19 USC 3805 note.] COMMENCEMENT OF ACTION
    FOR RELIEF.

    (a) In General.--A request under this subtitle for the purpose of
    adjusting to the obligations of the United States under the Agreement
    may be filed with the President by an interested party. Upon the filing
    of a request, the President shall review the request to determine, from
    information presented in the request, whether to commence consideration
    of the request.
    (b) Publication of Request.--If [NOTE: Federal Register,
    publication. Notice.] the President determines that the request under
    subsection (a) provides the information necessary for the request to be
    considered, the President shall cause to be published in the Federal
    Register a notice of commencement of consideration of the request, and
    notice seeking public comments regarding the request. The notice shall
    include the request and the dates by which comments and rebuttals must
    be received.

    SEC. 322. [NOTE: President. 19 USC 3805 note.] DETERMINATION AND
    PROVISION OF RELIEF.

    (a) Determination.--

    [[Page 938]]

    117 STAT. 938

    (1) In general.--If a positive determination is made under
    section 321(b), the President shall determine whether, as a
    result of the elimination of a duty under the Agreement, a
    Chilean 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, none of which is necessarily decisive;
    and
    (B) shall not consider changes in technology or
    consumer preference as factors supporting a
    determination of serious damage or actual threat
    thereof.

    (b) Provision of Relief.--
    (1) In general.--If a determination under subsection (a) is
    affirmative, the President may provide relief from imports of
    the article that is the subject of such determination, as
    provided in paragraph (2), to the extent that the President
    determines necessary to remedy or prevent the serious damage and
    to facilitate adjustment by the domestic industry.
    (2) Nature of relief.--The relief that the President is
    authorized to provide under this subsection with respect to
    imports of an article is an increase in the rate of duty imposed
    on the article to a level that does not exceed the lesser of--
    (A) the column 1 general rate of duty imposed under
    the HTS on like articles at the time the import relief
    is provided; or
    (B) the column 1 general rate of duty imposed under
    the HTS on like articles on the day before the date on
    which the Agreement enters into force.

    SEC. 323. [NOTE: 19 USC 3805 note.] PERIOD OF RELIEF.

    (a) In General.--The import relief that the President is authorized
    to provide under section 322, including any extensions thereof, may not,
    in the aggregate, exceed 3 years.
    (b) Extension.--If the initial period for any import relief provided
    under this section is less than 3 years, the President may extend the
    effective period of any import relief provided under this section,
    subject to the limitation set forth in subsection (a), if the President
    determines that--
    (1) the import relief continues to be necessary to remedy or
    prevent serious damage and to facilitate adjustment; and
    (2) there is evidence that the industry is making a positive
    adjustment to import competition.

    SEC. 324. [NOTE: 19 USC 3805 note.] ARTICLES EXEMPT FROM RELIEF.

    The President may not provide import relief under this subtitle with
    respect to any article if import relief previously has been provided
    under this subtitle with respect to that article.

    [[Page 939]]

    117 STAT. 939

    SEC. 325. [NOTE: 19 USC 3805 note.] RATE AFTER TERMINATION OF IMPORT
    RELIEF.

    When import relief under this subtitle is terminated with respect to
    an article, the rate of duty on that article shall be duty-free.

    SEC. 326. [NOTE: 19 USC 3805 note.] TERMINATION OF RELIEF AUTHORITY.

    No import relief may be provided under this subtitle with respect to
    any article after the date that is 8 years after the date on which
    duties on the article are eliminated pursuant to the Agreement.

    SEC. 327. [NOTE: 19 USC 3805 note.] COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C.
    2133), any import relief provided by the President under this subtitle
    shall be treated as action taken under chapter 1 of title II of that
    Act.

    SEC. 328. [NOTE: 19 USC 3805 note.] BUSINESS CONFIDENTIAL INFORMATION.

    The President may not release information 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 business confidential information is provided, a
    nonconfidential version of the information shall also be provided, in
    which the business confidential information is summarized or, if
    necessary, deleted.

    TITLE IV--TEMPORARY ENTRY OF BUSINESS PERSONS

    SEC. 401. [NOTE: 19 USC 3805 note.] NONIMMIGRANT TRADERS AND
    INVESTORS.

    Upon a basis of reciprocity secured by the Agreement, an alien who
    is a national of Chile (and any spouse or child (as defined in section
    101(b)(1) of the Immigration and Nationality Act (8 U.S.C. 1101(b)(1)))
    of such alien, if accompanying or following to join the alien) may, if
    otherwise eligible for a visa and if otherwise admissible into the
    United States under the Immigration and Nationality Act (8 U.S.C. 1101
    et seq.), be considered to be classifiable as a nonimmigrant under
    section 101(a)(15)(E) of such Act (8 U.S.C. 1101(a)(15)(E)) if entering
    solely for a purpose specified in clause (i) or (ii) of such section
    101(a)(15)(E). For purposes of this section, the term ``national'' has
    the meaning given such term in article 14.9 of the Agreement.

    SEC. 402. [NOTE: 19 USC 3805 note.] NONIMMIGRANT PROFESSIONALS; LABOR
    ATTESTATIONS.

    (a) Nonimmigrant Professionals.--
    (1) Definitions.--Section 101(a)(15)(H)(i)(b) of the
    Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(i)(b))
    is amended by striking ``212(n)(1), or (c)'' and inserting
    ``212(n)(1), or (b1) who is entitled to enter the United States
    under and in pursuance of the provisions of an agreement listed
    in section 214(g)(8)(A), who is engaged in a specialty
    occupation described in section 214(i)(3), and with respect to
    whom the Secretary of Labor determines and certifies to the
    Secretary of Homeland Security and the Secretary of State

    [[Page 940]]

    117 STAT. 940

    that the intending employer has filed with the Secretary of
    Labor an attestation under section 212(t)(1), or (c)''.
    (2) Admission of nonimmigrants.--Section 214 of the
    Immigration and Nationality Act (8 U.S.C. 1184) is amended--
    (A) in subsection (i)--
    (i) in paragraph (1), by striking ``For
    purposes'' and inserting ``Except as provided in
    paragraph (3), for purposes''; and
    (ii) by adding at the end the following:

    ``(3) For purposes of section 101(a)(15)(H)(i)(b1), the term
    `specialty occupation' means an occupation that requires--
    ``(A) theoretical and practical application of a body of
    specialized knowledge; and
    ``(B) attainment of a bachelor's or higher degree in the
    specific specialty (or its equivalent) as a minimum for entry
    into the occupation in the United States.''; and
    (B) in subsection (g), by adding at the end the
    following:

    ``(8)(A) The agreement referred to in section 101(a)(15)(H)(i)(b1)
    is the United States-Chile Free Trade Agreement.

    ``(B)(i) [NOTE: Aliens.] The Secretary of Homeland Security shall
    establish annual numerical limitations on approvals of initial
    applications by aliens for admission under section 101(a)(15)(H)(i)(b1).

    ``(ii) The annual numerical limitations described in clause (i)
    shall not exceed 1,400 for nationals of Chile for any fiscal year. For
    purposes of this clause, the term `national' has the meaning given such
    term in article 14.9 of the United States-Chile Free Trade Agreement.
    ``(iii) The annual numerical limitations described in clause (i)
    shall only apply to principal aliens and not to the spouses or children
    of such aliens.
    ``(iv) The annual numerical limitation described in paragraph (1)(A)
    is reduced by the amount of the annual numerical limitations established
    under clause (i). However, if a numerical limitation established under
    clause (i) has not been exhausted at the end of a given fiscal year, the
    Secretary of Homeland Security shall adjust upwards the numerical
    limitation in paragraph (1)(A) for that fiscal year by the amount
    remaining in the numerical limitation under clause (i). Visas under
    section 101(a)(15)(H)(i)(b) may be issued pursuant to such adjustment
    within the first 45 days of the next fiscal year to aliens who had
    applied for such visas during the fiscal year for which the adjustment
    was made.
    ``(C) The period of authorized admission as a nonimmigrant under
    section 101(a)(15)(H)(i)(b1) shall be 1 year, and may be extended, but
    only in 1-year increments. After every second extension, the next
    following extension shall not be granted unless the Secretary of Labor
    had determined and certified to the Secretary of Homeland Security and
    the Secretary of State that the intending employer has filed with the
    Secretary of Labor an attestation under section 212(t)(1) for the
    purpose of permitting the nonimmigrant to obtain such extension.
    ``(D) The numerical limitation described in paragraph (1)(A) for a
    fiscal year shall be reduced by one for each alien granted an extension
    under subparagraph (C) during such year who has obtained 5 or more
    consecutive prior extensions.''.
    (b) Labor Attestations.--Section 212 of the Immigration and
    Nationality Act (8 U.S.C. 1182) is amended--

    [[Page 941]]

    117 STAT. 941

    (1) by redesignating the subsection (p) added by section
    1505(f) of Public Law 106-386 (114 Stat. 1526) as subsection
    (s); and
    (2) by adding at the end the following:

    ``(t)(1) No alien may be admitted or provided status as a
    nonimmigrant under section 101(a)(15)(H)(i)(b1) in an occupational
    classification unless the employer has filed with the Secretary of Labor
    an attestation stating the following:
    ``(A) The employer--
    ``(i) is offering and will offer during the period
    of authorized employment to aliens admitted or provided
    status under section 101(a)(15)(H)(i)(b1) wages that are
    at least--
    ``(I) the actual wage level paid by the
    employer to all other individuals with similar
    experience and qualifications for the specific
    employment in question; or
    ``(II) the prevailing wage level for the
    occupational classification in the area of
    employment,
    whichever is greater, based on the best information
    available as of the time of filing the attestation; and
    ``(ii) will provide working conditions for such a
    nonimmigrant that will not adversely affect the working
    conditions of workers similarly employed.
    ``(B) There is not a strike or lockout in the course of a
    labor dispute in the occupational classification at the place of
    employment.
    ``(C) The employer, at the time of filing the attestation--
    ``(i) has provided notice of the filing under this
    paragraph to the bargaining representative (if any) of
    the employer's employees in the occupational
    classification and area for which aliens are sought; or
    ``(ii) if there is no such bargaining
    representative, has provided notice of filing in the
    occupational classification through such methods as
    physical posting in conspicuous locations at the place
    of employment or electronic notification to employees in
    the occupational classification for which nonimmigrants
    under section 101(a)(15)(H)(i)(b1) are sought.
    ``(D) A specification of the number of workers sought, the
    occupational classification in which the workers will be
    employed, and wage rate and conditions under which they will be
    employed.

    ``(2)(A) [NOTE: Public inspection. Deadline.] The employer shall
    make available for public examination, within one working day after the
    date on which an attestation under this subsection is filed, at the
    employer's principal place of business or worksite, a copy of each such
    attestation (and such accompanying documents as are necessary).

    ``(B)(i) [NOTE: Records.] The Secretary of Labor shall compile, on
    a current basis, a list (by employer and by occupational classification)
    of the attestations filed under this subsection. Such list shall
    include, with respect to each attestation, the wage rate, number of
    aliens sought, period of intended employment, and date of need.

    ``(ii) [NOTE: Public inspection.] The Secretary of Labor shall
    make such list available for public examination in Washington, D.C.

    [[Page 942]]

    117 STAT. 942

    ``(C) The Secretary of Labor shall review an attestation filed under
    this subsection only for completeness and obvious inaccuracies. Unless
    the Secretary of Labor finds that an attestation is incomplete or
    obviously inaccurate, the Secretary of Labor shall provide the
    certification described in section 101(a)(15)(H)(i)(b1) within 7 days of
    the date of the filing of the attestation.
    ``(3)(A) The Secretary of Labor shall establish a process for the
    receipt, investigation, and disposition of complaints respecting the
    failure of an employer to meet a condition specified in an attestation
    submitted under this subsection or misrepresentation by the employer of
    material facts in such an attestation. Complaints may be filed by any
    aggrieved person or organization (including bargaining representatives).
    No investigation or hearing shall be conducted on a complaint concerning
    such a failure or misrepresentation unless the complaint was filed not
    later than 12 months after the date of the failure or misrepresentation,
    respectively. The Secretary of Labor shall conduct an investigation
    under this paragraph if there is reasonable cause to believe that such a
    failure or misrepresentation has occurred.
    ``(B) [NOTE: Deadlines.] Under the process described in
    subparagraph (A), the Secretary of Labor shall provide, within 30 days
    after the date a complaint is filed, for a determination as to whether
    or not a reasonable basis exists to make a finding described in
    subparagraph (C). [NOTE: Notice.] If the Secretary of Labor determines
    that such a reasonable basis exists, the Secretary of Labor shall
    provide for notice of such determination to the interested parties and
    an opportunity for a hearing on the complaint, in accordance with
    section 556 of title 5, United States Code, within 60 days after the
    date of the determination. If such a hearing is requested, the Secretary
    of Labor shall make a finding concerning the matter by not later than 60
    days after the date of the hearing. In the case of similar complaints
    respecting the same applicant, the Secretary of Labor may consolidate
    the hearings under this subparagraph on such complaints.

    ``(C)(i) If the Secretary of Labor finds, after notice and
    opportunity for a hearing, a failure to meet a condition of paragraph
    (1)(B), a substantial failure to meet a condition of paragraph (1)(C) or
    (1)(D), or a misrepresentation of material fact in an attestation--
    ``(I) [NOTE: Notification.] the Secretary of Labor shall
    notify the Secretary of State and the Secretary of Homeland
    Security of such finding and may, in addition, impose such other
    administrative remedies (including civil monetary penalties in
    an amount not to exceed $1,000 per violation) as the Secretary
    of Labor determines to be appropriate; and
    ``(II) the Secretary of State or the Secretary of Homeland
    Security, as appropriate, shall not approve petitions or
    applications filed with respect to that employer under section
    204, 214(c), or 101(a)(15)(H)(i)(b1) during a period of at least
    1 year for aliens to be employed by the employer.

    ``(ii) If the Secretary of Labor finds, after notice and opportunity
    for a hearing, a willful failure to meet a condition of paragraph (1), a
    willful misrepresentation of material fact in an attestation, or a
    violation of clause (iv)--
    ``(I) [NOTE: Notification.] the Secretary of Labor shall
    notify the Secretary of State and the Secretary of Homeland
    Security of such finding and may, in addition, impose such other
    administrative remedies (including civil monetary penalties in
    an amount not

    [[Page 943]]

    117 STAT. 943

    to exceed $5,000 per violation) as the Secretary of Labor
    determines to be appropriate; and
    ``(II) the Secretary of State or the Secretary of Homeland
    Security, as appropriate, shall not approve petitions or
    applications filed with respect to that employer under section
    204, 214(c), or 101(a)(15)(H)(i)(b1) during a period of at least
    2 years for aliens to be employed by the employer.

    ``(iii) If the Secretary of Labor finds, after notice and
    opportunity for a hearing, a willful failure to meet a condition of
    paragraph (1) or a willful misrepresentation of material fact in an
    attestation, in the course of which failure or misrepresentation the
    employer displaced a United States worker employed by the employer
    within the period beginning 90 days before and ending 90 days after the
    date of filing of any visa petition or application supported by the
    attestation--
    ``(I) [NOTE: Notification.] the Secretary of Labor shall
    notify the Secretary of State and the Secretary of Homeland
    Security of such finding and may, in addition, impose such other
    administrative remedies (including civil monetary penalties in
    an amount not to exceed $35,000 per violation) as the Secretary
    of Labor determines to be appropriate; and
    ``(II) the Secretary of State or the Secretary of Homeland
    Security, as appropriate, shall not approve petitions or
    applications filed with respect to that employer under section
    204, 214(c), or 101(a)(15)(H)(i)(b1) during a period of at least
    3 years for aliens to be employed by the employer.

    ``(iv) It is a violation of this clause for an employer who has
    filed an attestation under this subsection to intimidate, threaten,
    restrain, coerce, blacklist, discharge, or in any other manner
    discriminate against an employee (which term, for purposes of this
    clause, includes a former employee and an applicant for employment)
    because the employee has disclosed information to the employer, or to
    any other person, that the employee reasonably believes evidences a
    violation of this subsection, or any rule or regulation pertaining to
    this subsection, or because the employee cooperates or seeks to
    cooperate in an investigation or other proceeding concerning the
    employer's compliance with the requirements of this subsection or any
    rule or regulation pertaining to this subsection.
    ``(v) The Secretary of Labor and the Secretary of Homeland Security
    shall devise a process under which a nonimmigrant under section
    101(a)(15)(H)(i)(b1) who files a complaint regarding a violation of
    clause (iv) and is otherwise eligible to remain and work in the United
    States may be allowed to seek other appropriate employment in the United
    States for a period not to exceed the maximum period of stay authorized
    for such nonimmigrant classification.
    ``(vi)(I) It is a violation of this clause for an employer who has
    filed an attestation under this subsection to require a nonimmigrant
    under section 101(a)(15)(H)(i)(b1) to pay a penalty for ceasing
    employment with the employer prior to a date agreed to by the
    nonimmigrant and the employer. The Secretary of Labor shall determine
    whether a required payment is a penalty (and not liquidated damages)
    pursuant to relevant State law.
    ``(II) If the Secretary of Labor finds, after notice and opportunity
    for a hearing, that an employer has committed a violation of this
    clause, the Secretary of Labor may impose a civil monetary penalty

    [[Page 944]]

    117 STAT. 944

    of $1,000 for each such violation and issue an administrative order
    requiring the return to the nonimmigrant of any amount paid in violation
    of this clause, or, if the nonimmigrant cannot be located, requiring
    payment of any such amount to the general fund of the Treasury.
    ``(vii)(I) It is a failure to meet a condition of paragraph (1)(A)
    for an employer who has filed an attestation under this subsection and
    who places a nonimmigrant under section 101(a)(15)(H)(i)(b1) designated
    as a full-time employee in the attestation, after the nonimmigrant has
    entered into employment with the employer, in nonproductive status due
    to a decision by the employer (based on factors such as lack of work),
    or due to the nonimmigrant's lack of a permit or license, to fail to pay
    the nonimmigrant full-time wages in accordance with paragraph (1)(A) for
    all such nonproductive time.
    ``(II) It is a failure to meet a condition of paragraph (1)(A) for
    an employer who has filed an attestation under this subsection and who
    places a nonimmigrant under section 101(a)(15)(H)(i)(b1) designated as a
    part-time employee in the attestation, after the nonimmigrant has
    entered into employment with the employer, in nonproductive status under
    circumstances described in subclause (I), to fail to pay such a
    nonimmigrant for such hours as are designated on the attestation
    consistent with the rate of pay identified on the attestation.
    ``(III) [NOTE: Applicability.] In the case of a nonimmigrant under
    section 101(a)(15)(H)(i)(b1) who has not yet entered into employment
    with an employer who has had approved an attestation under this
    subsection with respect to the nonimmigrant, the provisions of
    subclauses (I) and (II) shall apply to the employer beginning 30 days
    after the date the nonimmigrant first is admitted into the United
    States, or 60 days after the date the nonimmigrant becomes eligible to
    work for the employer in the case of a nonimmigrant who is present in
    the United States on the date of the approval of the attestation filed
    with the Secretary of Labor.

    ``(IV) This clause does not apply to a failure to pay wages to a
    nonimmigrant under section 101(a)(15)(H)(i)(b1) for nonproductive time
    due to non-work-related factors, such as the voluntary request of the
    nonimmigrant for an absence or circumstances rendering the nonimmigrant
    unable to work.
    ``(V) This clause shall not be construed as prohibiting an employer
    that is a school or other educational institution from applying to a
    nonimmigrant under section 101(a)(15)(H)(i)(b1) an established salary
    practice of the employer, under which the employer pays to nonimmigrants
    under section 101(a)(15)(H)(i)(b1) and United States workers in the same
    occupational classification an annual salary in disbursements over fewer
    than 12 months, if--
    ``(aa) the nonimmigrant agrees to the compressed annual
    salary payments prior to the commencement of the employment; and
    ``(bb) the application of the salary practice to the
    nonimmigrant does not otherwise cause the nonimmigrant to
    violate any condition of the nonimmigrant's authorization under
    this Act to remain in the United States.

    ``(VI) This clause shall not be construed as superseding clause
    (viii).

    [[Page 945]]

    117 STAT. 945

    ``(viii) It is a failure to meet a condition of paragraph (1)(A) for
    an employer who has filed an attestation under this subsection to fail
    to offer to a nonimmigrant under section 101(a)(15)(H)(i)(b1), during
    the nonimmigrant's period of authorized employment, benefits and
    eligibility for benefits (including the opportunity to participate in
    health, life, disability, and other insurance plans; the opportunity to
    participate in retirement and savings plans; and cash bonuses and non-
    cash compensation, such as stock options (whether or not based on
    performance)) on the same basis, and in accordance with the same
    criteria, as the employer offers to United States workers.
    ``(D) If the Secretary of Labor finds, after notice and opportunity
    for a hearing, that an employer has not paid wages at the wage level
    specified in the attestation and required under paragraph (1), the
    Secretary of Labor shall order the employer to provide for payment of
    such amounts of back pay as may be required to comply with the
    requirements of paragraph (1), whether or not a penalty under
    subparagraph (C) has been imposed.
    ``(E) The Secretary of Labor may, on a case-by-case basis, subject
    an employer to random investigations for a period of up to 5 years,
    beginning on the date on which the employer is found by the Secretary of
    Labor to have committed a willful failure to meet a condition of
    paragraph (1) or to have made a willful misrepresentation of material
    fact in an attestation. The authority of the Secretary of Labor under
    this subparagraph shall not be construed to be subject to, or limited
    by, the requirements of subparagraph (A).
    ``(F) Nothing in this subsection shall be construed as superseding
    or preempting any other enforcement-related authority under this Act
    (such as the authorities under section 274B), or any other Act.
    ``(4) For purposes of this subsection:
    ``(A) The term `area of employment' means the area within
    normal commuting distance of the worksite or physical location
    where the work of the nonimmigrant under section
    101(a)(15)(H)(i)(b1) is or will be performed. If such worksite
    or location is within a Metropolitan Statistical Area, any place
    within such area is deemed to be within the area of employment.
    ``(B) In the case of an attestation with respect to one or
    more nonimmigrants under section 101(a)(15)(H)(i)(b1) by an
    employer, the employer is considered to `displace' a United
    States worker from a job if the employer lays off the worker
    from a job that is essentially the equivalent of the job for
    which the nonimmigrant or nonimmigrants is or are sought. A job
    shall not be considered to be essentially equivalent of another
    job unless it involves essentially the same responsibilities,
    was held by a United States worker with substantially equivalent
    qualifications and experience, and is located in the same area
    of employment as the other job.
    ``(C)(i) The term `lays off', with respect to a worker--
    ``(I) means to cause the worker's loss of
    employment, other than through a discharge for
    inadequate performance, violation of workplace rules,
    cause, voluntary departure, voluntary retirement, or the
    expiration of a grant or contract; but

    [[Page 946]]

    117 STAT. 946

    ``(II) does not include any situation in which the
    worker is offered, as an alternative to such loss of
    employment, a similar employment opportunity with the
    same employer at equivalent or higher compensation and
    benefits than the position from which the employee was
    discharged, regardless of whether or not the employee
    accepts the offer.
    ``(ii) Nothing in this subparagraph is intended to limit an
    employee's rights under a collective bargaining agreement or
    other employment contract.
    ``(D) The term `United States worker' means an employee
    who--
    ``(i) is a citizen or national of the United States;
    or
    ``(ii) is an alien who is lawfully admitted for
    permanent residence, is admitted as a refugee under
    section 207 of this title, is granted asylum under
    section 208, or is an immigrant otherwise authorized, by
    this Act or by the Secretary of Homeland Security, to be
    employed.''.

    (c) Special Rule for Computation of Prevailing Wage.--Section
    212(p)(1) of the Immigration and Nationality Act (8 U.S.C. 1182(p)(1))
    is amended by striking ``(n)(1)(A)(i)(II) and (a)(5)(A)'' and inserting
    ``(a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II)''.

    (d) Fee.--
    (1) In general.--Section 214(c) of the Immigration and
    Nationality Act (8 U.S.C. 1184(c)) is amended by adding at the
    end the following:

    ``(11)(A) [NOTE: Fees.] Subject to subparagraph (B), the Secretary
    of Homeland Security or the Secretary of State, as appropriate, shall
    impose a fee on an employer who has filed an attestation described in
    section 212(t)--
    ``(i) in order that an alien may be initially granted
    nonimmigrant status described in section 101(a)(15)(H)(i)(b1);
    or
    ``(ii) in order to satisfy the requirement of the second
    sentence of subsection (g)(8)(C) for an alien having such status
    to obtain certain extensions of stay.

    ``(B) The amount of the fee shall be the same as the amount imposed
    by the Secretary of Homeland Security under paragraph (9), except that
    if such paragraph does not authorize such Secretary to impose any fee,
    no fee shall be imposed under this paragraph.
    ``(C) Fees collected under this paragraph shall be deposited in the
    Treasury in accordance with section 286(s).''.
    (2) Use of fee.--Section 286(s)(1) of the Immigration and
    Nationality Act (8 U.S.C. 1356(s)(1)) is amended by striking
    ``section 214(c)(9).'' and inserting ``paragraphs (9) and (11)
    of section 214(c).''.

    SEC. 403. [NOTE: 19 USC 3805 note.] LABOR DISPUTES.

    Section 214(j) of the Immigration and Nationality Act (8 U.S.C.
    1184(j)) is amended--
    (1) by striking ``(j)'' and inserting ``(j)(1)'';
    (2) by striking ``this subsection'' each place such term
    appears and inserting ``this paragraph''; and
    (3) by adding at the end the following:

    ``(2) [NOTE: Regulations.] Notwithstanding any other provision of
    this Act except section 212(t)(1), and subject to regulations
    promulgated by the Secretary of Homeland Security, an alien who seeks to
    enter the United States under and pursuant to the provisions of an
    agreement

    [[Page 947]]

    117 STAT. 947

    listed in subsection (g)(8)(A), and the spouse and children of such an
    alien if accompanying or following to join the alien, may be denied
    admission as a nonimmigrant under subparagraph (E), (L), or (H)(i)(b1)
    of section 101(a)(15) if there is in progress a labor dispute in the
    occupational classification at the place or intended place of
    employment, unless such alien establishes, pursuant to regulations
    promulgated by the Secretary of Homeland Security after consultation
    with the Secretary of Labor, that the alien's entry will not affect
    adversely the settlement of the labor dispute or the employment of any
    person who is involved in the labor dispute. [NOTE: Notice.] Notice of
    a determination under this paragraph shall be given as may be required
    by such agreement.''.

    SEC. 404. [NOTE: 19 USC 3805 note.] CONFORMING AMENDMENTS.

    Section 214 of the Immigration and Nationality Act (8 U.S.C. 1184)
    is amended--
    (1) in subsection (b), by striking ``(other than a
    nonimmigrant described in subparagraph (H)(i), (L), or (V) of
    section 101(a)(15))'' and inserting ``(other than a nonimmigrant
    described in subparagraph (L) or (V) of section 101(a)(15), and
    other than a nonimmigrant described in any provision of section
    101(a)(15)(H)(i) except subclause (b1) of such section)'';
    (2) in subsection (c)(1), by striking ``section
    101(a)(15)(H), (L), (O), or (P)(i)'' and inserting
    ``subparagraph (H), (L), (O), or (P)(i) of section 101(a)(15)
    (excluding nonimmigrants under section 101(a)(15)(H)(i)(b1))'';
    and
    (3) in subsection (h), by striking ``(H)(i)'' and inserting
    ``(H)(i)(b) or (c)''.

    Approved September 3, 2003.

    LEGISLATIVE HISTORY--H.R. 2738 (S. 1416):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 108-224, Pt. 1 (Comm. on Ways and Means) and Pt. 2
    (Comm. on the Judiciary).
    SENATE REPORTS: No. 108-116 accompanying S. 1416 (jointly from Comm. on
    Finance and Comm. on the Judiciary).
    CONGRESSIONAL RECORD, Vol. 149 (2003):
    July 24, considered and passed House.
    July 31, considered and passed Senate.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
    Sept. 3, Presidential remarks.