[United States Statutes at Large, Volume 119, 109th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

119 STAT. 462

Public Law 109-53
109th Congress

An Act


 
To implement the Dominican Republic-Central America-United States Free
Trade Agreement. NOTE: Aug. 2, 2005 -  [H.R. 3045]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress NOTE: Dominican Republic-Central
America-United States Free Trade Agreement Implementation Act. 19 USC
4001 note. assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Dominican Republic-
Central America-United States 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. Implementing actions in anticipation of entry into force and
initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.

TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Retroactive application for certain liquidations and
reliquidations of textile or apparel goods.
Sec. 206. Disclosure of incorrect information; false certifications of
origin; denial of preferential tariff treatment.
Sec. 207. Reliquidation of entries.
Sec. 208. Recordkeeping requirements.
Sec. 209. Enforcement relating to trade in textile or apparel goods.
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.

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119 STAT. 463

Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.
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. Confidential business information.

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

Sec. 331. Findings and action on goods of CAFTA-DR countries.

TITLE IV--MISCELLANEOUS

Sec. 401. Eligible products.
Sec. 402. Modifications to the Caribbean Basin Economic Recovery Act.
Sec. 403. Periodic reports and meetings on labor obligations and labor
capacity-building provisions.

SEC. 2. NOTE: 19 USC 4001. PURPOSES.

The purposes of this Act are--
(1) to approve and implement the Free Trade Agreement
between the United States, Costa Rica, the Dominican Republic,
El Salvador, Guatemala, Honduras, and Nicaragua entered into
under the authority of section 2103(b) of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C. 3803(b));
(2) to strengthen and develop economic relations between the
United States, Costa Rica, the Dominican Republic, El Salvador,
Guatemala, Honduras, and Nicaragua for their mutual benefit;
(3) to establish free trade between the United States, Costa
Rica, the Dominican Republic, El Salvador, Guatemala, Honduras,
and Nicaragua 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 the Agreement.

SEC. 3. NOTE: 19 USC 4002. DEFINITIONS.

In this Act:
(1) Agreement.--The term ``Agreement'' means the Dominican
Republic-Central America-United States Free Trade Agreement
approved by the Congress under section 101(a)(1).
(2) CAFTA-DR country.--Except as provided in section 203,
the term ``CAFTA-DR country'' means--
(A) Costa Rica, for such time as the Agreement is in
force between the United States and Costa Rica;
(B) the Dominican Republic, for such time as the
Agreement is in force between the United States and the
Dominican Republic;
(C) El Salvador, for such time as the Agreement is
in force between the United States and El Salvador;
(D) Guatemala, for such time as the Agreement is in
force between the United States and Guatemala;
(E) Honduras, for such time as the Agreement is in
force between the United States and Honduras; and
(F) Nicaragua, for such time as the Agreement is in
force between the United States and Nicaragua.
(3) Commission.--The term ``Commission'' means the United
States International Trade Commission.

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119 STAT. 464

(4) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(5) Textile or apparel good.--The term ``textile or apparel
good'' means a good listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other than
a good listed in Annex 3.29 of the Agreement.

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

SEC. 101. NOTE: 19 USC 4011. 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 Dominican Republic-Central America-United States
Free Trade Agreement entered into on August 5, 2004, with the
Governments of Costa Rica, the Dominican Republic, El Salvador,
Guatemala, Honduras, and Nicaragua, and submitted to the
Congress on June 23, 2005; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to the Congress on
June 23, 2005.

(b) Conditions for Entry Into force of the Agreement.--At such time
as the President determines that countries listed in subsection (a)(1)
have taken measures necessary to comply with the provisions of the
Agreement that are to take effect on the date on which the Agreement
enters into force, the President is authorized to provide for the
Agreement to enter into force with respect to those countries that
provide for the Agreement to enter into force for them.

SEC. 102. NOTE: 19 USC 4012. RELATIONSHIP OF THE AGREEMENT TO UNITED
STATES AND STATE LAW.

(a) Relationship of Agreement to United States Law.--
(1) United states law to prevail in conflict.--No provision
of the Agreement, nor the application of any such provision to
any person or circumstance, which is inconsistent with any law
of the United States shall have effect.
(2) Construction.--Nothing in this Act shall be construed--
(A) to amend or modify any law of the United States,
or
(B) to limit any authority conferred under any law
of the United States,
unless specifically provided for in this Act.

(b) Relationship of Agreement to State Law.--
(1) Legal challenge.--No State law, or the application
thereof, may be declared invalid as to any person or
circumstance on the ground that the provision or application is
inconsistent with the Agreement, except in an action brought

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119 STAT. 465

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: 19 USC 4013. IMPLEMENTING ACTIONS IN ANTICIPATION OF
ENTRY INTO FORCE AND INITIAL REGULATIONS.

(a) Implementing Actions.--
(1) Proclamation authority.--After the date of the enactment
of this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations,
as may be necessary to ensure that any provision of this Act, or
amendment made by this Act, that takes effect on the date 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 the Agreement enters into
force.
(2) NOTE: Federal Register, publication. Effective date
of certain proclaimed actions.--Any action proclaimed by the
President under the authority of this Act that is not subject to
the consultation and layover provisions under section 104 may
not take effect before the 15th day after the date on which the
text of the proclamation is published in the Federal Register.
(3) Waiver of 15-day restriction.--The 15-day restriction
contained in paragraph (2) on the taking effect of proclaimed
actions is waived to the extent that the application of such
restriction would prevent the taking effect on the date the
Agreement enters into force of any action proclaimed under this
section.

(b) NOTE: Deadlines. Initial Regulations.--Initial regulations
necessary or appropriate to carry out the actions required by or
authorized under this Act or proposed in the statement of administrative
action submitted under section 101(a)(2) to implement the Agreement
shall, to the maximum extent feasible, be issued within 1 year after the
date on which the Agreement enters into force. In the case of any
implementing action that takes effect on a date after the date on which
the Agreement enters into force, initial regulations to carry out that
action shall, to the maximum extent feasible, be issued within 1 year
after such effective date.

SEC. 104. NOTE: President. 19 USC 4014. CONSULTATION AND LAYOVER
PROVISIONS FOR, AND EFFECTIVE DATE OF, PROCLAIMED ACTIONS.

If a provision of this Act provides that the implementation of an
action by the President by proclamation is subject to the

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119 STAT. 466

consultation and layover requirements of this section, such action may
be proclaimed only if--
(1) the President has obtained advice regarding the proposed
action from--
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155); and
(B) the Commission;
(2) NOTE: Reports. the President has submitted to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a report that sets forth--
(A) the action proposed to be proclaimed and the
reasons therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first day
on which the requirements set forth in paragraphs (1) and (2)
have been met has expired; and
(4) the President has consulted with such Committees
regarding the proposed action during the period referred to in
paragraph (3).

SEC. 105. NOTE: 19 USC 4015. ADMINISTRATION OF DISPUTE SETTLEMENT
PROCEEDINGS.

(a) NOTE: President. 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 20 of the
Agreement. The office may not be considered to be an agency for purposes
of section 552 of title 5, United States Code.

(b) Authorization of Appropriations.--There are authorized to be
appropriated for each fiscal year after fiscal year 2005 to the
Department of Commerce such sums as may be necessary for the
establishment and operations of the office established or designated
under subsection (a) and for the payment of the United States share of
the expenses of panels established under chapter 20 of the Agreement.

SEC. 106. NOTE: 19 USC 4016. ARBITRATION OF CLAIMS.

The United States is authorized to resolve any claim against the
United States covered by article 10.16.1(a)(i)(C) or article
10.16.1(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.

SEC. 107. NOTE: 19 USC 4001 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 CAFTA-DR Status.--During any period in which a
country ceases to be a CAFTA-DR country, the provisions of this Act
(other than this subsection) and the amendments made by this Act shall
cease to have effect with respect to that country.
(d) Termination of the Agreement.--On the date on which the
Agreement ceases to be in force with respect to the United States, the
provisions of this Act (other than this subsection) and the amendments
made by this Act shall cease to have effect.

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119 STAT. 467

TITLE II--CUSTOMS PROVISIONS

SEC. 201. NOTE: 19 USC 4031. TARIFF MODIFICATIONS.

(a) Tariff Modifications Provided for in the Agreement.--
(1) Proclamation authority.--The President may pro- claim--
(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, 3.5, 3.6, 3.21, 3.26, 3.27, and
3.28, and Annexes 3.3, 3.27, and 3.28 of the Agreement.
(2) NOTE: President. Effect on 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 each CAFTA-DR country as a beneficiary developing
country for purposes of title V of the Trade Act of 1974 on the
date the Agreement enters into force with respect to that
country.
(3) Effect on cbera status.--
(A) NOTE: President. In general.--
Notwithstanding section 212(a) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(a)), the President
shall terminate the designation of each CAFTA-DR country
as a beneficiary country for purposes of that Act on the
date the Agreement enters into force with respect to
that country.
(B) Exception.--Notwithstanding subparagraph (A),
each such country shall be considered a beneficiary
country under section 212(a) of the Caribbean Basin
Economic Recovery Act, for purposes of--
(i) sections 771(7)(G)(ii)(III) and 771(7)(H)
of the Tariff Act of 1930 (19 U.S.C.
1677(7)(G)(ii)(III) and 1677(7)(H));
(ii) the duty-free treatment provided under
paragraph 12 of Appendix I of the General Notes to
the Schedule of the United States to Annex 3.3 of
the Agreement; and
(iii) section 274(h)(6)(B) of the Internal
Revenue Code of 1986.

(b) Other Tariff Modifications.--Subject to the consultation and
layover provisions of section 104, the President may proclaim--
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree to
with a CAFTA-DR country 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,

as the President determines to be necessary or appropriate to maintain
the general level of reciprocal and mutually advantageous concessions
provided for by the Agreement.
(c) Conversion to Ad Valorem Rates.--For purposes of subsections (a)
and (b), with respect to any good for which the base rate in the
Schedule of the United States to Annex 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.

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119 STAT. 468

SEC. 202. NOTE: 19 USC 4032. ADDITIONAL DUTIES ON CERTAIN
AGRICULTURAL GOODS.

(a) General Provisions.--
(1) Applicability of subsection.--This subsection applies to
additional duties assessed under subsection (b).
(2) Applicable ntr (mfn) rate of duty.--For purposes of
subsection (b), the term ``applicable NTR (MFN) rate of duty''
means, with respect to a safeguard good, a rate of duty that is
the lesser of--
(A) the column 1 general rate of duty that would, at
the time the additional duty is imposed under subsection
(b), apply to a good classifiable in the same 8-digit
subheading of the HTS as the safeguard good; or
(B) the column 1 general rate of duty that would, on
the day before the date on which the Agreement enters
into force, apply to a good classifiable in the same 8-
digit subheading of the HTS as the safeguard good.
(3) Schedule rate of duty.--For purposes of subsection (b),
the term ``schedule rate of duty'' means, with respect to a
safeguard good, the rate of duty for that good that is set out
in the Schedule of the United States to Annex 3.3 of the
Agreement.
(4) Safeguard good.--In this section, the term ``safeguard
good'' means a good--
(A) that is included in the Schedule of the United
States to Annex 3.15 of the Agreement;
(B) that qualifies as an originating good under
section 203, except that operations performed in or
material obtained from the United States shall be
considered as if the operations were performed in, and
the material was obtained from, a country that is not a
party to the Agreement; and
(C) for which a claim for preferential tariff
treatment under the Agreement has been made.
(5) Exceptions.--No additional duty shall be assessed on a
good under subsection (b) 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.).
(6) Termination.--The assessment of an additional duty on a
good under subsection (b) shall cease to apply to that good on
the date on which duty-free treatment must be provided to that
good under the Schedule of the United States to Annex 3.3 of the
Agreement.
(7) NOTE: Deadline. Notice.--Not later than 60 days
after the Secretary of the Treasury first assesses an additional
duty in a calendar year on a good under subsection (b), the
Secretary shall notify the country whose good is subject to the
additional duty in writing of such action and shall provide to
that country data supporting the assessment of the additional
duty.

(b) Additional Duties on Safeguard Goods.--
(1) In general.--In addition to any duty proclaimed under
subsection (a) or (b) of section 201, and subject to subsection
(a), the Secretary of the Treasury shall assess a duty, in the
amount determined under paragraph (2), on a safeguard good of a
CAFTA-DR country imported into the United States in a calendar
year if the Secretary determines that, prior to such

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119 STAT. 469

importation, the total volume of that safeguard good of such
country that is imported into the United States in that calendar
year exceeds 130 percent of the volume that is set out for that
safeguard good in the corresponding year in the table for that
country contained in Appendix I of the General Notes to the
Schedule of the United States to Annex 3.3 of the Agreement. For
purposes of this subsection, year 1 in that table corresponds to
the calendar year in which the Agreement enters into force.
(2) Calculation of additional duty.--The additional duty on
a safeguard good under this subsection shall be--
(A) in the case of a good classified under
subheading 1202.10.80, 1202.20.80, 2008.11.15,
2008.11.35, or 2008.11.60 of the HTS--
(i) in years 1 through 5, an amount equal to
100 percent of the excess of the applicable NTR
(MFN) rate of duty over the schedule rate of duty;
(ii) in years 6 through 10, an amount equal to
75 percent of the excess of the applicable NTR
(MFN) rate of duty over the schedule rate of duty;
and
(iii) in years 11 through 14, an amount equal
to 50 percent of the excess of the applicable NTR
(MFN) rate of duty over the schedule rate of duty;
and
(B) in the case of any other safeguard good--
(i) in years 1 through 14, an amount equal to
100 percent of the excess of the applicable NTR
(MFN) rate of duty over the schedule rate of duty;
(ii) in years 15 through 17, an amount equal
to 75 percent of the excess of the applicable NTR
(MFN) rate of duty over the schedule rate of duty;
and
(iii) in years 18 and 19, an amount equal to
50 percent of the excess of the applicable NTR
(MFN) rate of duty over the schedule rate of duty.

SEC. 203. NOTE: 19 USC 4033. RULES OF ORIGIN.

(a) Application and Interpretation.--In this section:
(1) Tariff classification.--The basis for any tariff
classification is the HTS.
(2) Reference to hts.--Whenever in this section there is a
reference to a chapter, heading, or subheading, such reference
shall be a reference to a chapter, heading, or subheading of the
HTS.
(3) Cost or value.--Any cost or value referred to in this
section shall be recorded and maintained in accordance with the
generally accepted accounting principles applicable in the
territory of the country in which the good is produced (whether
the United States or another CAFTA-DR country).

(b) Originating Goods.--For purposes of this Act and for purposes of
implementing the preferential tariff treatment provided for under the
Agreement, except as otherwise provided in this section, a good is an
originating good if--
(1) the good is a good wholly obtained or produced entirely
in the territory of one or more of the CAFTA-DR countries;
(2) the good--
(A) is produced entirely in the territory of one or
more of the CAFTA-DR countries, and--

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119 STAT. 470

(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
(ii) the good otherwise satisfies any
applicable regional value-content or other
requirements specified in Annex 4.1 of the
Agreement; and
(B) satisfies all other applicable requirements of
this section; or
(3) the good is produced entirely in the territory of one or
more of the CAFTA-DR countries, exclusively from materials
described in paragraph (1) or (2).

(c) Regional Value-Content.--
(1) In general.--For purposes of subsection (b)(2), the
regional value-content of a good referred to in Annex 4.1 of the
Agreement, except for goods to which paragraph (4) applies,
shall be calculated by the importer, exporter, or producer of
the good, on the basis of the build-down method described in
paragraph (2) or the build-up method described in paragraph (3).
(2) Build-down method.--
(A) In general.--The regional value-content of a
good may be calculated on the basis of the following
build-down method:


av
rvc = -------- x 100
av-vnm


(B) Definitions.--In subparagraph (A):
(i) RVC.--The term ``RVC'' means the regional
value-content of the good, expressed as a
percentage.
(ii) AV.--The term ``AV'' means the adjusted
value of the good.
(iii) VNM.--The term ``VNM'' means the value
of nonoriginating materials that are acquired and
used by the producer in the production of the
good, but does not include the value of a material
that is self-produced.
(3) Build-up method.--
(A) In general.--The regional value-content of a
good may be calculated on the basis of the following
build-up method:


av
rvc = -------- x 100
vom


(B) Definitions.--In subparagraph (A):
(i) RVC.--The term ``RVC'' means the regional
value-content of the good, expressed as a
percentage.
(ii) AV.--The term ``AV'' means the adjusted
value of the good.
(iii) VOM.--The term ``VOM'' means the value
of originating materials that are acquired or
self-produced, and used by the producer in the
production of the good.
(4) Special rule for certain automotive goods.--

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119 STAT. 471

(A) In general.--For purposes of subsection (b)(2),
the regional value-content of an automotive good
referred to in Annex 4.1 of the Agreement may be
calculated by the importer, exporter, or producer of the
good, on the basis of the following net cost method:


nc
rvc = -------- x 100
nc-vnm


(B) Definitions.--In subparagraph (A):
(i) Automotive good.--The term ``automotive
good'' means a good provided for in any of
subheadings 8407.31 through 8407.34, subheading
8408.20, heading 8409, or in any of headings 8701
through 8708.
(ii) RVC.--The term ``RVC'' means the regional
value-content of the automotive good, expressed as
a percentage.
(iii) NC.--The term ``NC'' means the net cost
of the automotive good.
(iv) VNM.--The term ``VNM'' means the value of
nonoriginating materials that are acquired and
used by the producer in the production of the
automotive good, but does not include the value of
a material that is self-produced.
(C) Motor vehicles.--
(i) Basis of calculation.--For purposes of
determining the regional value-content under
subparagraph (A) for an automotive good that is a
motor vehicle provided for in any of headings 8701
through 8705, an importer, exporter, or producer
may average the amounts calculated under the
formula contained in subparagraph (A), over the
producer's fiscal year--
(I) with respect to all motor
vehicles in any 1 of the categories
described in clause (ii); or
(II) with respect to all motor
vehicles in any such category that are
exported to the territory of one or more
of the CAFTA-DR countries.
(ii) Categories.--A category is described in
this clause if it--
(I) is the same model line of motor
vehicles, is in the same class of
vehicles, and is produced in the same
plant in the territory of a CAFTA-DR
country, as the good described in clause
(i) for which regional value-content is
being calculated;
(II) is the same class of motor
vehicles, and is produced in the same
plant in the territory of a CAFTA-DR
country, as the good described in clause
(i) for which regional value-content is
being calculated; or
(III) is the same model line of
motor vehicles produced in the territory
of a CAFTA-DR country as the good
described in clause (i) for which
regional value-content is being
calculated.
(D) Other automotive goods.--For purposes of
determining the regional value-content under
subparagraph (A) for automotive goods provided for in
any of subheadings

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119 STAT. 472

8407.31 through 8407.34, in subheading 8408.20, or in
heading 8409, 8706, 8707, or 8708, that are produced in
the same plant, an importer, exporter, or producer may--
(i) average the amounts calculated under the
formula contained in subparagraph (A) over--
(I) the fiscal year of the motor
vehicle producer to whom the automotive
goods are sold,
(II) any quarter or month, or
(III) its own fiscal year,
if the goods were produced during the fiscal year,
quarter, or month that is the basis for the
calculation;
(ii) determine the average referred to in
clause (i) separately for such goods sold to 1 or
more motor vehicle producers; or
(iii) make a separate determination under
clause (i) or (ii) for automotive goods that are
exported to the territory of one or more of the
CAFTA-DR countries.
(E) Calculating net cost.--The importer, exporter,
or producer shall, consistent with the provisions
regarding allocation of costs set out in generally
accepted accounting principles, determine the net cost
of an automotive good under subparagraph (B) by--
(i) calculating the total cost incurred with
respect to all goods produced by the producer of
the automotive good, subtracting any sales
promotion, marketing and after-sales service
costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in
the total cost of all such goods, and then
reasonably allocating the resulting net cost of
those goods to the automotive good;
(ii) calculating the total cost incurred with
respect to all goods produced by that producer,
reasonably allocating the total cost to the
automotive good, and then subtracting any sales
promotion, marketing and after-sales service
costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in
the portion of the total cost allocated to the
automotive good; or
(iii) reasonably allocating each cost that
forms part of the total cost incurred with respect
to the automotive good so that the aggregate of
all such costs does not include any sales
promotion, marketing and after-sales service
costs, royalties, shipping and packing costs, or
nonallowable interest costs.

(d) Value of Materials.--
(1) In general.--For the purpose of calculating the regional
value-content of a good under subsection (c), and for purposes
of applying the de minimis rules under subsection (f), the value
of a material is--
(A) in the case of a material that is imported by
the producer of the good, the adjusted value of the
material;
(B) in the case of a material acquired in the
territory in which the good is produced, the value,
determined in accordance with Articles 1 through 8,
Article 15, and the corresponding interpretive notes of
the Agreement on Implementation of Article VII of the
General Agreement

[[Page 473]]
119 STAT. 473

on Tariffs and Trade 1994 referred to in section
101(d)(8) of the Uruguay Round Agreements Act, as set
forth in regulations promulgated by the Secretary of the
Treasury providing for the application of such Articles
in the absence of an importation; or
(C) in the case of a material that is self-produced,
the sum of--
(i) all expenses incurred in the production of
the material, including general expenses; and
(ii) an amount for profit equivalent to the
profit added in the normal course of trade.
(2) Further adjustments to the value of materials.--
(A) Originating material.--The following expenses,
if not included in the value of an originating material
calculated under paragraph (1), may be added to the
value of the originating material:
(i) The costs of freight, insurance, packing,
and all other costs incurred in transporting the
material within or between the territory of one or
more of the CAFTA-DR countries to the location of
the producer.
(ii) Duties, taxes, and customs brokerage fees
on the material paid in the territory of one or
more of the CAFTA-DR countries, other than duties
or taxes that are waived, refunded, refundable, or
otherwise recoverable, including credit against
duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting
from the use of the material in the production of
the good, less the value of renewable scrap or
byproducts.
(B) Nonoriginating material.--The following
expenses, if included in the value of a nonoriginating
material calculated under paragraph (1), may be deducted
from the value of the nonoriginating material:
(i) The costs of freight, insurance, packing,
and all other costs incurred in transporting the
material within or between the territory of one or
more of the CAFTA-DR countries to the location of
the producer.
(ii) Duties, taxes, and customs brokerage fees
on the material paid in the territory of one or
more of the CAFTA-DR countries, other than duties
or taxes that are waived, refunded, refundable, or
otherwise recoverable, including credit against
duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting
from the use of the material in the production of
the good, less the value of renewable scrap or
byproducts.
(iv) The cost of originating materials used in
the production of the nonoriginating material in
the territory of one or more of the CAFTA-DR
countries.

(e) Accumulation.--
(1) Originating materials used in production of goods of
another country.--Originating materials from the territory of
one or more of the CAFTA-DR countries that are used in the
production of a good in the territory of another CAFTA-DR
country shall be considered to originate in the territory of
that other country.

[[Page 474]]
119 STAT. 474

(2) Multiple procedures.--A good that is produced in the
territory of one or more of the CAFTA-DR countries by 1 or more
producers is an originating good if the good satisfies the
requirements of subsection (b) and all other applicable
requirements of this section.

(f) De Minimis Amounts of Nonoriginating Materials.--
(1) In general.--Except as provided in paragraphs (2) and
(3), a good that does not undergo a change in tariff
classification pursuant to Annex 4.1 of the Agreement is an
originating good if--
(A) the value of all nonoriginating materials that--
(i) are used in the production of the good,
and
(ii) do not undergo the applicable change in
tariff classification (set out in Annex 4.1 of the
Agreement),
does not exceed 10 percent of the adjusted value of the
good;
(B) the good meets all other applicable requirements
of this section; and
(C) the value of such nonoriginating materials is
included in the value of nonoriginating materials for
any applicable regional value-content requirement for
the good.
(2) Exceptions.--Paragraph (1) does not apply to the
following:
(A) A nonoriginating material provided for in
chapter 4, or a nonoriginating dairy preparation
containing over 10 percent by weight of milk solids
provided for in subheading 1901.90 or 2106.90, that is
used in the production of a good provided for in chapter
4.
(B) A nonoriginating material provided for in
chapter 4, or a nonoriginating dairy preparation
containing over 10 percent by weight of milk solids
provided for in subheading 1901.90, that is used in the
production of the following goods:
(i) Infant preparations containing over 10
percent by weight of milk solids provided for in
subheading 1901.10.
(ii) Mixes and doughs, containing over 25
percent by weight of butterfat, not put up for
retail sale, provided for in subheading 1901.20.
(iii) Dairy preparations containing over 10
percent by weight of milk solids provided for in
subheading 1901.90 or 2106.90.
(iv) Goods provided for in heading 2105.
(v) Beverages containing milk provided for in
subheading 2202.90.
(vi) Animal feeds containing over 10 percent
by weight of milk solids provided for in
subheading 2309.90.
(C) A nonoriginating material provided for in
heading 0805, or any of subheadings 2009.11 through
2009.39, that is used in the production of a good
provided for in any of subheadings 2009.11 through
2009.39, or in fruit or vegetable juice of any single
fruit or vegetable, fortified with minerals or vitamins,
concentrated or unconcentrated, provided for in
subheading 2106.90 or 2202.90.

[[Page 475]]
119 STAT. 475

(D) A nonoriginating material provided for in
heading 0901 or 2101 that is used in the production of a
good provided for in heading 0901 or 2101.
(E) A nonoriginating material provided for in
heading 1006 that is used in the production of a good
provided for in heading 1102 or 1103 or subheading
1904.90.
(F) A nonoriginating material provided for in
chapter 15 that is used in the production of a good
provided for in chapter 15.
(G) A nonoriginating material provided for in
heading 1701 that is used in the production of a good
provided for in any of headings 1701 through 1703.
(H) A nonoriginating material provided for in
chapter 17 that is used in the production of a good
provided for in subheading 1806.10.
(I) Except as provided in subparagraphs (A) through
(H) and Annex 4.1 of the Agreement, a nonoriginating
material used in the production of a good provided for
in any of chapters 1 through 24, unless the
nonoriginating material is provided for in a different
subheading than the good for which origin is being
determined under this section.
(3) Textile or apparel goods.--
(A) In general.--Except as provided in subparagraph
(B), a textile or apparel good that is not an
originating good because certain fibers or yarns used in
the production of the component of the good that
determines the tariff classification of the good do not
undergo an applicable change in tariff classification,
set out in Annex 4.1 of the Agreement, shall be
considered to be an originating good if--
(i) the total weight of all such fibers or
yarns in that component is not more than 10
percent of the total weight of that component; or
(ii) the yarns are those described in section
204(b)(3)(B)(vi)(IV) of the Andean Trade
Preference Act (19 U.S.C.
3203(b)(3)(B)(vi)(IV))(as in effect on the date of
the enactment of this Act).
(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 a CAFTA-DR country.
(C) Yarn, fabric, or fiber.--For purposes of this
paragraph, in the case of a good that is a yarn, fabric,
or fiber, the term ``component of the good that
determines the tariff classification of the good'' means
all of the fibers in the good.

(g) Fungible Goods and Materials.--
(1) In general.--
(A) Claim for preferential tariff treatment.--A
person claiming that a fungible good or fungible
material is an originating good may base the claim
either on the physical segregation of the fungible good
or fungible material or by using an inventory management
method with respect to the fungible good or fungible
material.

[[Page 476]]
119 STAT. 476

(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
CAFTA-DR country in which the production
is performed; or
(II) otherwise accepted by that
country.
(2) Election of inventory method.--A person selecting an
inventory management method under paragraph (1) for a particular
fungible good or fungible material shall continue to use that
method for that fungible good or fungible material throughout
the fiscal year of that person.

(h) Accessories, Spare Parts, or Tools.--
(1) In general.--Subject to paragraphs (2) and (3),
accessories, spare parts, or tools delivered with a good that
form part of the good's standard accessories, spare parts, or
tools shall--
(A) be treated as originating goods if the good is
an originating good; and
(B) be disregarded in determining whether all the
nonoriginating materials used in the production of the
good undergo the applicable change in tariff
classification set out in Annex 4.1 of the Agreement.
(2) NOTE: Applicability. Conditions.--Paragraph (1)
shall apply only if--
(A) the accessories, spare parts, or tools are
classified with and not invoiced separately from the
good, regardless of whether they appear specified or
separately identified in the invoice for the good; and
(B) the quantities and value of the accessories,
spare parts, or tools are customary for the good.
(3) Regional value-content.--If the good is subject to a
regional value-content requirement, the value of the
accessories, spare parts, or tools shall be taken into account
as originating or nonoriginating materials, as the case may be,
in calculating the regional value-content of the good.

(i) Packaging Materials and Containers for Retail Sale.--Packaging
materials and containers in which a good is packaged for retail sale, if
classified with the good, shall be disregarded in determining whether
all the nonoriginating materials used in the production of the good
undergo the applicable change in tariff classification set 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.
(j) Packing Materials and Containers for Shipment.--Packing
materials and containers for shipment shall be disregarded in
determining whether a good is an originating good.
(k) Indirect Materials.--An indirect material shall be treated as an
originating material without regard to where it is produced.
(l) Transit and Transhipment.--A good that has undergone production
necessary to qualify as an originating good under subsection (b) shall
not be considered to be an originating good if, subsequent to that
production, the good--

[[Page 477]]
119 STAT. 477

(1) undergoes further production or any other operation
outside the territories of the CAFTA-DR countries, other than
unloading, reloading, or any other operation necessary to
preserve the good in good condition or to transport the good to
the territory of a CAFTA-DR country; or
(2) does not remain under the control of customs authorities
in the territory of a country other than a CAFTA-DR country.

(m) Goods Classifiable as Goods Put Up in Sets.--Notwithstanding the
rules set forth in Annex 4.1 of the Agreement, goods classifiable as
goods put up in sets for retail sale as provided for in General Rule of
Interpretation 3 of the HTS shall not be considered to be originating
goods unless--
(1) each of the goods in the set is an originating good; or
(2) the total value of the nonoriginating goods in the set
does not exceed--
(A) in the case of textile or apparel goods, 10
percent of the adjusted value of the set; or
(B) in the case of a good, other than a textile or
apparel good, 15 percent of the adjusted value of the
set.

(n) Definitions.--In this section:
(1) Adjusted value.--The term ``adjusted value'' means the
value determined in accordance with Articles 1 through 8,
Article 15, and the corresponding interpretive notes of the
Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 referred to in section
101(d)(8) of the Uruguay Round Agreements Act, adjusted, if
necessary, to exclude any costs, charges, or expenses incurred
for transportation, insurance, and related services incident to
the international shipment of the merchandise from the country
of exportation to the place of importation.
(2) CAFTA-DR country.--The term ``CAFTA-DR country'' means--
(A) the United States; and
(B) Costa Rica, the Dominican Republic, El Salvador,
Guatemala, Honduras, or Nicaragua, for such time as the
Agreement is in force between the United States and that
country.
(3) Class of motor vehicles.--The term ``class of motor
vehicles'' means any one of the following categories of motor
vehicles:
(A) Motor vehicles provided for in subheading
8701.20, 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90,
or heading 8705 or 8706, or motor vehicles for the
transport of 16 or more persons provided for in
subheading 8702.10 or 8702.90.
(B) Motor vehicles provided for in subheading
8701.10 or any of subheadings 8701.30 through 8701.90.
(C) Motor vehicles for the transport of 15 or fewer
persons provided for in subheading 8702.10 or 8702.90,
or motor vehicles provided for in subheading 8704.21 or
8704.31.
(D) Motor vehicles provided for in any of
subheadings 8703.21 through 8703.90.
(4) Fungible good or fungible material.--The term ``fungible
good'' or ``fungible material'' means a good or material, as the
case may be, that is interchangeable with another good

[[Page 478]]
119 STAT. 478

or material for commercial purposes and the properties of which
are essentially identical to such other good or material.
(5) Generally accepted accounting principles.--The term
``generally accepted accounting principles'' means the
recognized consensus or substantial authoritative support in the
territory of a CAFTA-DR country with respect to the recording of
revenues, expenses, costs, assets, and liabilities, the
disclosure of information, and the preparation of financial
statements. The principles may encompass broad guidelines of
general application as well as detailed standards, practices,
and procedures.
(6) Goods wholly obtained or produced entirely in the
territory of one or more of the cafta-dr countries.--The term
``goods wholly obtained or produced entirely in the territory of
one or more of the CAFTA-DR countries'' means--
(A) plants and plant products harvested or gathered
in the territory of one or more of the CAFTA-DR
countries;
(B) live animals born and raised in the territory of
one or more of the CAFTA-DR countries;
(C) goods obtained in the territory of one or more
of the CAFTA-DR countries from live animals;
(D) goods obtained from hunting, trapping, fishing
or aquaculture conducted in the territory of one or more
of the CAFTA-DR countries;
(E) minerals and other natural resources not
included in subparagraphs (A) through (D) that are
extracted or taken in the territory of one or more of
the CAFTA-DR countries;
(F) fish, shellfish, and other marine life taken
from the sea, seabed, or subsoil outside the territory
of one or more of the CAFTA-DR countries by vessels
registered or recorded with a CAFTA-DR country and
flying the flag of that country;
(G) goods produced on board factory ships from the
goods referred to in subparagraph (F), if such factory
ships are registered or recorded with that CAFTA-DR
country and fly the flag of that country;
(H) goods taken by a CAFTA-DR country or a person of
a CAFTA-DR country from the seabed or subsoil outside
territorial waters, if a CAFTA-DR country has rights to
exploit such seabed or subsoil;
(I) goods taken from outer space, if the goods are
obtained by a CAFTA-DR country or a person of a CAFTA-DR
country and not processed in the territory of a country
other than a CAFTA-DR country;
(J) waste and scrap derived from--
(i) manufacturing or processing operations in
the territory of one or more of the CAFTA-DR
countries; or
(ii) used goods collected in the territory of
one or more of the CAFTA-DR countries, if such
goods are fit only for the recovery of raw
materials;
(K) recovered goods derived in the territory of one
or more of the CAFTA-DR countries from used goods, and
used in the territory of a CAFTA-DR country in the
production of remanufactured goods; and

[[Page 479]]
119 STAT. 479

(L) goods produced in the territory of one or more
of the CAFTA-DR countries exclusively from--
(i) goods referred to in any of subparagraphs
(A) through (J), or
(ii) the derivatives of goods referred to in
clause (i),
at any stage of production.
(7) Identical goods.--The term ``identical goods'' means
identical goods as defined in 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;
(8) 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.
(9) Material.--The term ``material'' means a good that is
used in the production of another good, including a part or an
ingredient.
(10) Material that is self-produced.--The term ``material
that is self-produced'' means an originating material that is
produced by a producer of a good and used in the production of
that good.
(11) Model line.--The term ``model line'' means a group of
motor vehicles having the same platform or model name.
(12) Net cost.--The term ``net cost'' means total cost minus
sales promotion, marketing, and after-sales service costs,
royalties, shipping and packing costs, and non-allowable
interest costs that are included in the total cost.
(13) Nonallowable interest costs.--The term ``nonallowable
interest costs'' means interest costs incurred by a producer
that exceed 700 basis points above the applicable official
interest rate for comparable maturities of the CAFTA-DR country
in which the producer is located.
(14) 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 originating under this section.

[[Page 480]]
119 STAT. 480

(15) Packing materials and containers for shipment.--The
term ``packing materials and containers for shipment'' 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.
(16) Preferential tariff treatment.--The term ``preferential
tariff treatment'' means the customs duty rate, and the
treatment under article 3.10.4 of the Agreement, that are
applicable to an originating good pursuant to the Agreement.
(17) Producer.--The term ``producer'' means a person who
engages in the production of a good in the territory of a CAFTA-
DR country.
(18) Production.--The term ``production'' means growing,
mining, harvesting, fishing, raising, trapping, hunting,
manufacturing, processing, assembling, or disassembling a good.
(19) Reasonably allocate.--The term ``reasonably allocate''
means to apportion in a manner that would be appropriate under
generally accepted accounting principles.
(20) Recovered goods.--The term ``recovered goods'' means
materials in the form of individual parts that are the result
of--
(A) the disassembly of used goods into individual
parts; and
(B) the cleaning, inspecting, testing, or other
processing that is necessary for improvement to sound
working condition of such individual parts.
(21) Remanufactured good.--The term ``remanufactured good''
means a good that is classified under chapter 84, 85, or 87, or
heading 9026, 9031, or 9032, other than a good classified under
heading 8418 or 8516, and that--
(A) is entirely or partially comprised of recovered
goods; and
(B) has a similar life expectancy and enjoys a
factory warranty similar to such a new good.
(22) Total cost.--The term ``total cost'' means all product
costs, period costs, and other costs for a good incurred in the
territory of one or more of the CAFTA-DR countries.
(23) Used.--The term ``used'' means used or consumed in the
production of goods.

(o) Presidential Proclamation Authority.--
(1) In general.--The President is authorized to proclaim, as
part of the HTS--
(A) the provisions set 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) Fabrics and yarns not available in commercial quantities
in the united states.--The President is authorized to proclaim
that a fabric or yarn is added to the list in Annex 3.25 of the
Agreement in an unrestricted quantity, as provided in article
3.25.4(e) of the Agreement.
(3) Modifications.--
(A) In general.--Subject to the consultation and
layover provisions of section 104, the President may
proclaim modifications to the provisions proclaimed
under the

[[Page 481]]
119 STAT. 481

authority of paragraph (1)(A), other than provisions of
chapters 50 through 63, as included in Annex 4.1 of the
Agreement.
(B) NOTE: Deadline. Additional proclamations.--
Notwithstanding subparagraph (A), and subject to the
consultation and layover provisions of section 104, the
President may proclaim before the end of the 1-year
period beginning on 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, as
included in Annex 4.1 of the Agreement.
(4) Fabrics, yarns, or fibers not available in commercial
quantities in the cafta-dr countries.--
(A) In general.--Notwithstanding paragraph 3(A), the
list of fabrics, yarns, and fibers set out in Annex 3.25
of the Agreement may be modified as provided for in this
paragraph.
(B) Definitions.--In this paragraph:
(i) The term ``interested entity'' means the
government of a CAFTA-DR country other than the
United States, a potential or actual purchaser of
a textile or apparel good, or a potential or
actual supplier of a textile or apparel good.
(ii) All references to ``day'' and ``days''
exclude Saturdays, Sundays, and legal holidays.
(C) Requests to add fabrics, yarns, or fibers.--(i)
An interested entity may request the President to
determine that a fabric, yarn, or fiber is not available
in commercial quantities in a timely manner in the
CAFTA-DR countries and to add that fabric, yarn, or
fiber to the list in Annex 3.25 of the Agreement in a
restricted or unrestricted quantity.
(ii) After receiving a request under clause (i), the
President may determine whether--
(I) the fabric, yarn, or fiber is available in
commercial quantities in a timely manner in the
CAFTA-DR countries; or
(II) any interested entity objects to the
request.
(iii) The President may, within the time periods
specified in clause (iv), proclaim that a fabric, yarn,
or fiber that is the subject of a request submitted
under clause (i) is added to the list in Annex 3.25 of
the Agreement in an unrestricted quantity, or in any
restricted quantity that the President may establish, if
the President determines under clause (ii) that--
(I) the fabric, yarn, or fiber is not
available in commercial quantities in a timely
manner in the CAFTA-DR countries; or
(II) no interested entity has objected to the
request.
(iv) NOTE: Deadlines. The time periods within
which the President may issue a proclamation under
clause (iii) are--
(I) not later than 30 days after the date on
which the request is submitted under clause (i);
or
(II) not later than 44 days after the request
is submitted, if the President determines, within
30 days after the date on which the request is
submitted, that

[[Page 482]]
119 STAT. 482

the President does not have sufficient information
to make a determination under clause (ii).
(v) NOTE: Effective date. Federal Register,
publication. Notwithstanding section 103(a)(2), a
proclamation made under clause (iii) shall take effect
on the date on which the text of the proclamation is
published in the Federal Register.
(vi) NOTE: Deadline. Not later than 6 months
after proclaiming under clause (iii) that a fabric,
yarn, or fiber is added to the list in Annex 3.25 of the
Agreement in a restricted quantity, the President may
eliminate the restriction if the President determines
that the fabric, yarn, or fiber is not available in
commercial quantities in a timely manner in the CAFTA-DR
countries.
(D) NOTE: Effective dates. Deemed approval of
request.--If, after an interested entity submits a
request under subparagraph (C)(i), the President does
not, within the applicable time period specified in
subparagraph (C)(iv), make a determination under
subparagraph (C)(ii) regarding the request, the fabric,
yarn, or fiber that is the subject of the request shall
be considered to be added, in an unrestricted quantity,
to the list in Annex 3.25 of the Agreement beginning--
(i) 45 days after the date on which the
request was submitted; or
(ii) 60 days after the date on which the
request was submitted, if the President made a
determination under subparagraph (C)(iv)(II).
(E) Requests to restrict or remove fabrics, yarns,
or fibers.--(i) Subject to clause (ii), an interested
entity may request the President to restrict the
quantity of, or remove from the list in Annex 3.25 of
the Agreement, any fabric, yarn, or fiber--
(I) that has been added to that list in an
unrestricted quantity pursuant to paragraph (2) or
subparagraph (C)(iii) or (D); or
(II) with respect to which the President has
eliminated a restriction under subparagraph
(C)(vi).
(ii) An interested entity may submit a request under
clause (i) at any time beginning 6 months after the date
of the action described in subclause (I) or (II) of that
clause.
(iii) NOTE: Deadline. Not later than 30 days
after the date on which a request under clause (i) is
submitted, the President may proclaim an action provided
for under clause (i) if the President determines that
the fabric, yarn, or fiber that is the subject of the
request is available in commercial quantities in a
timely manner in the CAFTA-DR countries.
(iv) NOTE: Effective date. Federal Register,
publication. A proclamation declared under clause
(iii) shall take effect no earlier than the date that is
6 months after the date on which the text of the
proclamation is published in the Federal Register.
(F) Procedures.--The President shall establish
proce- dures--
(i) governing the submission of a request
under subparagraphs (C) and (E); and
(ii) providing an opportunity for interested
entities to submit comments and supporting
evidence before

[[Page 483]]
119 STAT. 483

the President makes a determination under
subparagraph (C) (ii) or (vi) or (E)(iii).

SEC. 204. CUSTOMS USER FEES.

Section 13031(b) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph
(14), the following:
``(15) No fee may be charged under subsection (a) (9) or
(10) with respect to goods that qualify as originating goods
under section 203 of the Dominican Republic-Central America-
United States 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 4034. RETROACTIVE APPLICATION FOR CERTAIN
LIQUIDATIONS AND RELIQUIDATIONS OF TEXTILE OR APPAREL GOODS.

(a) In General.--Notwithstanding section 514 of the Tariff Act of
1930 (19 U.S.C. 1514) or any other provision of law, and subject to
subsection (c), an entry--
(1) of a textile or apparel good--
(A) of a CAFTA-DR country that the United States
Trade Representative has designated as an eligible
country under subsection (b), and
(B) that would have qualified as an originating good
under section 203 if the good had been entered after the
date of entry into force of the Agreement for that
country,
(2) that was made on or after January 1, 2004, and before
the date of the entry into force of the Agreement with respect
to that country, and
(3) for which customs duties in excess of the applicable
rate of duty for that good set out in the Schedule of the United
States to Annex 3.3 of the Agreement were paid,

shall be liquidated or reliquidated at the applicable rate of duty for
that good set out in the Schedule of the United States to Annex 3.3 of
the Agreement, and the Secretary of the Treasury shall refund any excess
customs duties paid with respect to such entry.
(b) NOTE: Federal Register, publication. Eligible Country.--The
United States Trade Representative shall determine, in accordance with
article 3.20 of the Agreement, which CAFTA-DR countries are eligible
countries for purposes of this section, and shall publish a list of all
such countries in the Federal Register.

(c) NOTE: Regulations. Requests.--Liquidation or reliquidation
may be made under subsection (a) with respect to an entry of a textile
or apparel good only if a request therefor is filed with the Bureau of
Customs and Border Protection, within such period as the Bureau of
Customs and Border Protection shall establish by regulation in
consultation with the Secretary of the Treasury, that contains
sufficient information to enable the Bureau of Customs and Border
Protection--
(1)(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be located; and
(2) to determine that the good satisfies the conditions set
out in subsection (a).

(d) Definition.--As used in this section, the term ``entry''
includes a withdrawal from warehouse for consumption.

[[Page 484]]
119 STAT. 484

SEC. 206. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF
ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.

(a) Disclosure of Incorrect Information.--Section 592 of the Tariff
Act of 1930 (19 U.S.C. 1592) is amended--
(1) in subsection (c)--
(A) by redesignating paragraph (9) as paragraph
(10); and
(B) by inserting after paragraph (8) the following
new paragraph:
``(9) NOTE: Regulations. Prior disclosure regarding
claims under the dominican republic-central america-united
states 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 203
of the Dominican Republic-Central America-United States Free
Trade Agreement Implementation Act if the importer, in
accordance with regulations issued by the Secretary of the
Treasury, promptly and voluntarily makes a corrected declaration
and pays any duties owing.''; and
(2) by adding at the end the following new subsection:

``(h) False Certifications of Origin Under the Dominican Republic-
Central America-United States 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 CAFTA-DR certification of origin (as defined
in section 508(g)(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 203 of the Dominican
Republic-Central America-United States 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) Prompt and voluntary disclosure of incorrect
information.--No penalty shall be imposed under this subsection
if, promptly after an exporter or producer that issued a CAFTA-
DR certification of origin has reason to believe that such
certification contains or is based on incorrect information, the
exporter or producer voluntarily provides written notice of such
incorrect information to every person to whom the certification
was issued.
``(3) Exception.--A person may not be considered to have
violated paragraph (1) if--
``(A) the information was correct at the time it was
provided in a CAFTA-DR certification of origin but was
later rendered incorrect due to a change in
circumstances; and
``(B) the person promptly and voluntarily provides
written notice of the change in circumstances to all
persons to whom the person provided the
certification.''.

(b) Denial of Preferential Tariff Treatment.--Section 514 of the
Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding at the end the
following new subsection:
``(h) Denial of Preferential Tariff Treatment Under the Dominican
Republic-Central America-United States Free

[[Page 485]]
119 STAT. 485

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, exporter, or producer of false or
unsupported representations that goods qualify under the rules of origin
set out in section 203 of the Dominican Republic-Central America-United
States Free Trade Agreement Implementation Act, the Bureau of Customs
and Border Protection, in accordance with regulations issued by the
Secretary of the Treasury, may suspend preferential tariff treatment
under the Dominican Republic-Central America-United States Free Trade
Agreement to entries of identical goods covered by subsequent
representations by that importer, exporter, or producer until the Bureau
of Customs and Border Protection determines that representations of that
person are in conformity with such section 203.''.

SEC. 207. RELIQUIDATION OF ENTRIES.

Subsection (d) of section 520 of the Tariff Act of 1930 (19 U.S.C.
1520(d)) is amended--
(1) in the matter preceding paragraph (1), by striking ``or
section 202 of the United States-Chile Free Trade Agreement
Implementation Act'' and inserting ``, section 202 of the United
States-Chile Free Trade Agreement Implementation Act, or section
203 of the Dominican Republic-Central America-United States Free
Trade Agreement Implementation Act''; and
(2) in paragraph (2), by inserting ``or certifications''
after ``other certificates''.

SEC. 208. RECORDKEEPING REQUIREMENTS.

Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
(1) by redesignating subsection (g) as subsection (h);
(2) by inserting after subsection (f) the following new
subsection:

``(g) Certifications of Origin for Goods Exported Under the
Dominican Republic-Central America-United States Free Trade Agreement.--
``(1) Definitions.--In this subsection:
``(A) Records and supporting documents.--The term
`records and supporting documents' means, with respect
to an exported good under paragraph (2), records and
documents related to the origin of the good, including--
``(i) the purchase, cost, and value of, and
payment for, the good;
``(ii) the purchase, cost, and value of, and
payment for, all materials, including indirect
materials, used in the production of the good; and
``(iii) the production of the good in the form
in which it was exported.
``(B) CAFTA-DR certification of origin.--The term
`CAFTA-DR certification of origin' means the
certification established under article 4.16 of the
Dominican Republic-Central America-United States Free
Trade Agreement that a good qualifies as an originating
good under such Agreement.
``(2) Exports to cafta-dr countries.--Any person who
completes and issues a CAFTA-DR certification of origin for a
good exported from the United States shall make, keep, and,
pursuant to rules and regulations promulgated by the

[[Page 486]]
119 STAT. 486

Secretary of the Treasury, render for examination and inspection
all records and supporting documents related to the origin of
the good (including the certification or copies thereof).
``(3) Retention period.--Records and supporting documents
shall be kept by the person who issued a CAFTA-DR certification
of origin for at least 5 years after the date on which the
certification was issued.''; and
(3) in subsection (h), as so redesignated--
(A) by inserting ``or (g)'' after ``(f)''; and
(B) by striking ``that subsection'' and inserting
``either such subsection''.

SEC. 209. NOTE: 19 USC 4035. ENFORCEMENT RELATING TO TRADE IN
TEXTILE OR APPAREL GOODS.

(a) Action During Verification.--
(1) In general.--If the Secretary of the Treasury requests
the government of a CAFTA-DR country to conduct a verification
pursuant to article 3.24 of the Agreement for purposes of making
a determination under paragraph (2), the President may direct
the Secretary to take appropriate action described in subsection
(b) while the verification is being conducted.
(2) Determination.--A determination under this paragraph is
a determination--
(A) that an exporter or producer in that country is
complying with applicable customs laws, regulations, and
procedures regarding trade in textile or apparel goods,
or
(B) that a claim that a textile or apparel good
exported or produced by such exporter or producer--
(i) qualifies as an originating good under
section 203 of this Act, or
(ii) is a good of a CAFTA-DR country,
is accurate.

(b) Appropriate Action Described.--Appropriate action under
subsection (a)(1) includes--
(1) suspension of preferential tariff treatment under the
Agreement with respect to--
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification
under subsection (a)(1) regarding compliance described
in subsection (a)(2)(A), if the Secretary determines
there is insufficient information to support any claim
for preferential tariff treatment that has been made
with respect to any such good; or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1)
regarding a claim described in subsection (a)(2)(B), if
the Secretary determines there is insufficient
information to support that claim;
(2) denial of preferential tariff treatment under the
Agreement with respect to--
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification
under

[[Page 487]]
119 STAT. 487

subsection (a)(1) regarding compliance described in
subsection (a)(2)(A), if the Secretary determines that
the person has provided incorrect information to support
any claim for preferential tariff treatment that has
been made with respect to any such good; or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1)
regarding a claim described in subsection (a)(2)(B), if
the Secretary determines that a person has provided
incorrect information to support that claim;
(3) detention of any textile or apparel good exported or
produced by the person that is the subject of a verification
under subsection (a)(1) regarding compliance described in
subsection (a)(2)(A) or a claim described in subsection
(a)(2)(B), if the Secretary determines there is insufficient
information to determine the country of origin of any such good;
and
(4) denial of entry into the United States of any textile or
apparel good exported or produced by the person that is the
subject of a verification under subsection (a)(1) regarding
compliance described in subsection (a)(2)(A) or a claim
described in subsection (a)(2)(B), if the Secretary determines
that the person has provided incorrect information as to the
country of origin of any such good.

(c) Action on Completion of a Verification.--On completion of a
verification 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 the
determination under subsection (a)(2) or until such earlier date as the
President may direct.
(d) Appropriate Action Described.--Appropriate action under
subsection (c) includes--
(1) denial of preferential tariff treatment under the
Agreement with respect to--
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification
under subsection (a)(1) regarding compliance described
in subsection (a)(2)(A), if the Secretary determines
there is insufficient information to support, or that
the person has provided incorrect information to
support, any claim for preferential tariff treatment
that has been made with respect to any such good; or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1)
regarding a claim described in subsection (a)(2)(B), if
the Secretary determines there is insufficient
information to support, or that a person has provided
incorrect information to support, that claim; and
(2) denial of entry into the United States of any textile or
apparel good exported or produced by the person that is the
subject of a verification under subsection (a)(1) regarding
compliance described in subsection (a)(2)(A) or a claim
described in subsection (a)(2)(B), if the Secretary determines
there is insufficient information to determine, or that the
person has provided incorrect information as to, the country of
origin of any such good.

[[Page 488]]
119 STAT. 488

(e) Publication of Name of Person.--The Secretary may publish the
name of any person that the Secretary has determined--
(1) is engaged in intentional circumvention of applicable
laws, regulations, or procedures affecting trade in textile or
apparel goods; or
(2) has failed to demonstrate that it produces, or is
capable of producing, textile or apparel goods.

SEC. 210. NOTE: 19 USC 4036. REGULATIONS.

The Secretary of the Treasury shall prescribe such regulations as
may be necessary to carry out--
(1) subsections (a) through (n) of section 203;
(2) the amendment made by section 204; and
(3) any proclamation issued under section 203(o).

TITLE III--RELIEF FROM IMPORTS

SEC. 301. NOTE: 19 USC 4051. DEFINITIONS.

In this title:
(1) CAFTA-DR article.--The term ``CAFTA-DR article'' means
an article that qualifies as an originating good under section
203(b).
(2) CAFTA-DR textile or apparel article.--The term ``CAFTA-
DR textile or apparel article'' means a textile or apparel good
(as defined in section 3(5)) that is a CAFTA-DR article.
(3) De minimis supplying country.--
(A) Subject to subparagraph (B), the term ``de
minimis supplying country'' means a CAFTA-DR country
whose share of imports of the relevant CAFTA-DR article
into the United States does not exceed 3 percent of the
aggregate volume of imports of the relevant CAFTA-DR
article in the most recent 12-month period for which
data are available that precedes the filing of the
petition under section 311(a).
(B) A CAFTA-DR country shall not be considered to be
a de minimis supplying country if the aggregate share of
imports of the relevant CAFTA-DR article into the United
States of all CAFTA-DR countries that satisfy the
conditions of subparagraph (A) exceeds 9 percent of the
aggregate volume of imports of the relevant CAFTA-DR
article during the applicable 12-month period.
(4) Relevant cafta-dr article.--The term ``relevant CAFTA-DR
article'' means the CAFTA-DR article with respect to which a
petition has been filed under section 311(a).

Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. NOTE: 19 USC 4061. 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

[[Page 489]]
119 STAT. 489

Commission by an entity, including a trade association, firm, certified
or recognized union, or group of workers, that is representative of an
industry. The Commission shall transmit a copy of any petition filed
under this subsection to the United States Trade Representative.
(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 CAFTA-DR 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 CAFTA-DR
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 CAFTA-DR article if,
after the date that the Agreement enters into force, import relief has
been provided with respect to that CAFTA-DR article under this subtitle.

SEC. 312. NOTE: 19 USC 4062. COMMISSION ACTION ON PETITION.

(a) NOTE: Deadline. Determination.--Not 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. At that time, the Commission
shall also determine whether any CAFTA-DR country is a de minimis
supplying country.

(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

[[Page 490]]
119 STAT. 490

injury found by the Commission. Members of the Commission who did not
vote in the affirmative may submit, in the report required under
subsection (d), separate views regarding what action, if any, should be
taken to remedy or prevent the injury.
(d) Report to President.--Not later than the date that is 30 days
after the date on which a determination is made under subsection (a)
with respect to an investigation, the Commission shall submit to the
President a report that includes--
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is
affirmative, any findings and recommendations for import relief
made under subsection (c) and an explanation of the basis for
each recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination and recommendation
referred to in paragraphs (1) and (2).

(e) NOTE: Federal Register, publication. Public Notice.--Upon
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: President. 19 USC 4063. PROVISION OF RELIEF.

(a) NOTE: Deadline. In General.--Not 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 491]]
119 STAT. 491

1 year, the President shall provide for the progressive
liberalization (described in article 8.2.3 of the Agreement) of
such relief at regular intervals during the period of its
application.

(d) Period of Relief.--
(1) In general.--Subject to paragraph (2), any import relief
that the President is authorized to provide under this section
may not, in the aggregate, be in effect for more than 4 years.
(2) Extension.--
(A) In general.--If the initial period for any
import relief provided under this section is less than 4
years, the President, after receiving a determination
from the Commission under subparagraph (B) that is
affirmative, or which the President considers to be
affirmative under paragraph (1) of section 330(d) of the
Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), may extend
the effective period of any import relief provided under
this section, 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 by the domestic industry
to import competition; and
(ii) there is evidence that the industry is
making a positive adjustment to import
competition.
(B) NOTE: Deadline. Action by commission.--(i)
Upon a petition on behalf of the industry concerned that
is 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: 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) NOTE: Reports. Deadline. The 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 to Annex 3.3 of the Agreement
would have been in effect 1 year after the provision of relief
under subsection (a); and

[[Page 492]]
119 STAT. 492

(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--
(A) the applicable rate of duty for that article set
out in the Schedule of the United States to 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 Schedule of the United States to 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--
(1) any article subject to import relief under chapter 1 of
title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.); or
(2) imports of a CAFTA-DR article of a CAFTA-DR country that
is a de minimis supplying country with respect to that article.

SEC. 314. NOTE: 19 USC 4064. TERMINATION OF RELIEF AUTHORITY.

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

SEC. 315. NOTE: 19 USC 4065. 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. 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 Dominican Republic-Central America-United States Free
Trade Agreement Implementation Act''.

Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF NOTE: President. 19 USC 4081. 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.-- NOTE: Federal Register,
publication. Notice. If the President determines that the request
under subsection (a) provides the information necessary

[[Page 493]]
119 STAT. 493

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 a summary of the request
and the dates by which comments and rebuttals must be received.

SEC. 322. NOTE: President. 19 USC 4082. DETERMINATION AND PROVISION
OF RELIEF.

(a) Determination.--
(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
CAFTA-DR textile or apparel article of a specified CAFTA-DR
country 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.
(3) Deadline for determination.--The President shall make
the determination under paragraph (1) no later than 30 days
after the completion of any consultations held pursuant to
article 3.23.4 of the Agreement.

(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 4083. PERIOD OF RELIEF.

(a) In General.--Subject to subsection (b), any import relief that
the President provides under subsection (b) of section 322 may not, in
the aggregate, be in effect for more than 3 years.
(b) Extension.--If the initial period for any import relief provided
under section 322 is less than 3 years, the President may

[[Page 494]]
119 STAT. 494

extend the effective period of any import relief provided under that
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 by the
domestic industry to import competition; and
(2) there is evidence that the industry is making a positive
adjustment to import competition.

SEC. 324. NOTE: 19 USC 4084. ARTICLES EXEMPT FROM RELIEF.

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

SEC. 325. NOTE: 19 USC 4085. 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 the rate that
would have been in effect, but for the provision of such relief.

SEC. 326. NOTE: 19 USC 4086. TERMINATION OF RELIEF AUTHORITY.

No import relief may be provided under this subtitle with respect to
any article after the date that is 5 years after the date on which the
Agreement enters into force.

SEC. 327. NOTE: 19 USC 4087. 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 4088. CONFIDENTIAL BUSINESS INFORMATION.

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

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

SEC. 331. NOTE: 19 USC 4101. FINDINGS AND ACTION ON GOODS OF CAFTA-
DR COUNTRIES.

(a) NOTE: Reports. Effect of Imports.--If, in any investigation
initiated under chapter 1 of title II of the Trade Act of 1974, the
Commission makes an affirmative determination (or a determination which
the President may treat as an affirmative determination under such
chapter by reason of section 330(d) of the Tariff Act of 1930), the
Commission shall also find (and report to the President at

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119 STAT. 495

the time such injury determination is submitted to the President)
whether imports of the article of each CAFTA-DR country that qualify as
originating goods under section 203(b) are a substantial cause of
serious injury or threat thereof.

(b) Presidential Determination Regarding Imports of CAFTA-DR
Countries.--In determining the nature and extent of action to be taken
under chapter 1 of title II of the Trade Act of 1974, the President may
exclude from the action goods of a CAFTA-DR country with respect to
which the Commission has made a negative finding under subsection (a).

TITLE IV--MISCELLANEOUS

SEC. 401. ELIGIBLE PRODUCTS.

Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C.
2518(4)(A)) is amended--
(1) by striking ``or'' at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iv) a party to the Dominican Republic-
Central America-United States Free Trade
Agreement, a product or service of that country or
instrumentality which is covered under that
Agreement for procurement by the United States.''.

SEC. 402. MODIFICATIONS TO THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT.

(a) Former Beneficiary Countries.--Section 212(a)(1) of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended
by adding at the end the following new subparagraph:
``(F) The term `former beneficiary country' means a
country that ceases to be designated as a beneficiary
country under this title because the country has become
a party to a free trade agreement with the United
States.''.

(b) NOTE: Effective dates. Countries Eligible for Designation as
Beneficiary Countries.--Section 212(b) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2702(b)) is amended by striking from the list of
countries eligible for designation as beneficiary countries--
(1) NOTE: 19 USC 2702 note. ``Costa Rica'', effective on
the date the President terminates the designation of Costa Rica
as a beneficiary country pursuant to section 201(a)(3);
(2) NOTE: 19 USC 2702 note. ``Dominican Republic'',
effective on the date the President terminates the designation
of the Dominican Republic as a beneficiary country pursuant to
section 201(a)(3);
(3) NOTE: 19 USC 2702 note. ``El Salvador'', effective
on the date the President terminates the designation of El
Salvador as a beneficiary country pursuant to section 201(a)(3);
(4) NOTE: 19 USC 2702 note. ``Guatemala'', effective on
the date the President terminates the designation of Guatemala
as a beneficiary country pursuant to section 201(a)(3);
(5) NOTE: 19 USC 2702 note. ``Honduras'', effective on
the date the President terminates the designation of Honduras as
a beneficiary country pursuant to section 201(a)(3); and

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119 STAT. 496

(6) NOTE: 19 USC 2702 note. ``Nicaragua'', effective on
the date the President terminates the designation of Nicaragua
as a beneficiary country pursuant to section 201(a)(3).

(c) Materials of, or Processing in, Former Beneficiary Countries.--
Section 213(a)(1) of the Caribbean Basin Economic Recovery Act (19
U.S.C. 2703(a)(1)) is amended by striking ``the Commonwealth of Puerto
Rico and the United States Virgin Islands'' and inserting ``the
Commonwealth of Puerto Rico, the United States Virgin Islands, and any
former beneficiary country''.
(d) Definitions and Special Rules.--Section 213(b)(5) of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)(5)) is amended
by adding at the end the following new subparagraphs:
``(G) Former cbtpa beneficiary country.--The term
`former CBTPA beneficiary country' means a country that
ceases to be designated as a CBTPA beneficiary country
under this title because the country has become a party
to a free trade agreement with the United States.
``(H) Articles that undergo production in a cbtpa
beneficiary country and a former cbtpa beneficiary
country.--(i) For purposes of determining the
eligibility of an article for preferential treatment
under paragraph (2) or (3), references in either such
paragraph, and in subparagraph (C) of this paragraph
to--
``(I) a `CBTPA beneficiary country' shall be
considered to include any former CBTPA beneficiary
country, and
``(II) `CBTPA beneficiary countries' shall be
considered to include former CBTPA beneficiary
countries,
if the article, or a good used in the production of the
article, undergoes production in a CBTPA beneficiary
country.
``(ii) An article that is eligible for preferential
treatment under clause (i) shall not be ineligible for
such treatment because the article is imported directly
from a former CBTPA beneficiary country.
``(iii) Notwithstanding clauses (i) and (ii), an
article that is a good of a former CBTPA beneficiary
country for purposes of section 304 of the Tariff Act of
1930 (19 U.S.C. 1304) or section 334 of the Uruguay
Round Agreements Act (19 U.S.C. 3592), as the case may
be, shall not be eligible for preferential treatment
under paragraph (2) or (3), unless--
``(I) it is an article that is a good of the
Dominican Republic under either such section 304
or 334; and
``(II) the article, or a good used in the
production of the article, undergoes production in
Haiti.''.

SEC. 403. NOTE: 19 USC 4111. PERIODIC REPORTS AND MEETINGS ON LABOR
OBLIGATIONS AND LABOR CAPACITY-BUILDING PROVISIONS.

(a) Reports to Congress.--
(1) NOTE: President. In general.--Not later than the end
of the 2-year period beginning on the date the Agreement enters
into force, and not later than the end of each 2-year period
thereafter during the succeeding 14-year period, the President
shall report to the Congress on the progress made by the CAFTA-
DR countries in--

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119 STAT. 497

(A) implementing Chapter Sixteen and Annex 16.5 of
the Agreement; and
(B) implementing the White Paper.
(2) White paper.--In this section, the term ``White Paper''
means the report of April 2005 of the Working Group of the Vice
Ministers Responsible for Trade and Labor in the Countries of
Central America and the Dominican Republic entitled ``The Labor
Dimension in Central America and the Dominican Republic -
Building on Progress: Strengthening Compliance and Enhancing
Capacity''.
(3) Contents of reports.--Each report under paragraph (1)
shall include the following:
(A) A description of the progress made by the Labor
Cooperation and Capacity Building Mechanism established
by article 16.5 and Annex 16.5 of the Agreement, and the
Labor Affairs Council established by article 16.4 of the
Agreement, in achieving their stated goals, including a
description of the capacity-building projects
undertaken, funds received, and results achieved, in
each CAFTA-DR country.
(B) Recommendations on how the United States can
facilitate full implementation of the recommendations
contained in the White Paper.
(C) A description of the work done by the CAFTA-DR
countries with the International Labor Organization to
implement the recommendations contained in the White
Paper, and the efforts of the CAFTA-DR countries with
international organizations, through the Labor
Cooperation and Capacity Building Mechanism referred to
in subparagraph (A), to advance common commitments
regarding labor matters.
(D) A summary of public comments received on--
(i) capacity-building efforts by the United
States envisaged by article 16.5 and Annex 16.5 of
the Agreement;
(ii) efforts by the United States to
facilitate full implementation of the White Paper
recommendations; and
(iii) the efforts made by the CAFTA-DR
countries to comply with article 16.5 and Annex
16.5 of the Agreement and to fully implement the
White Paper recommendations, including the
progress made by the CAFTA-DR countries in
affording to workers internationally-recognized
worker rights through improved capacity.
(4) NOTE: President. Solicitation of public comments.--
The President shall establish a mechanism to solicit public
comments for purposes of paragraph (3)(D).

(b) Periodic Meetings of Secretary of Labor With Labor Ministers of
CAFTA-DR Countries.--
(1) Periodic meetings.--The Secretary of Labor should take
the necessary steps to meet periodically with the labor
ministers of the CAFTA-DR countries to discuss--
(A) the operation of the labor provisions of the
Agreement;

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119 STAT. 498

(B) progress on the commitments made by the CAFTA-DR
countries to implement the recommendations contained in
the White Paper;
(C) the work of the International Labor Organization
in the CAFTA-DR countries, and other cooperative
efforts, to afford to workers internationally-recognized
worker rights; and
(D) such other matters as the Secretary of Labor and
the labor ministers consider appropriate.
(2) NOTE: President. Inclusion in biennial reports.--The
President shall include in each report under subsection (a), as
the President deems appropriate, summaries of the meetings held
pursuant to paragraph (1).

Approved August 2, 2005.

LEGISLATIVE HISTORY--H.R. 3045 (S. 1307):
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HOUSE REPORTS: No. 109-182 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 151 (2005):
July 27, considered and passed House.
July 28, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 41 (2005):
Aug. 2, Presidential remarks.