H. R. 3045

One Hundred Ninth Congress

of the

United States of America 

AT THE FIRST SESSION 

Begun and held at the City of Washington on Tuesday, 

the fourth day of January, two thousand and five 

An Act 

To implement the Dominican Republic-Central America-United States Free Trade 

Agreement.

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress 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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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 capacitybuilding provisions.

SEC. 2. 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. 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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(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. 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. 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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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 REM- EDIES.—No person other than the United States—

(1) shall have any cause of action or defense under the 

Agreement or by virtue of congressional approval thereof; or 

(2) may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, 

or other instrumentality of the United States, any State, or 

any political subdivision of a State, on the ground that such 

action or inaction is inconsistent with the Agreement. 

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 

FORCE AND INITIAL REGULATIONS. 

(a) IMPLEMENTING ACTIONS.— (1) PROCLAMATION AUTHORITY.—After the date of the enactment of this Act—

(A) the President may proclaim such actions, and 

(B) other appropriate officers of the United States 

Government may issue such regulations, 

as may be necessary to ensure that any provision of this Act, 

or amendment made by this Act, that takes effect on the 

date 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) 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) INITIAL REGULATIONS.—Initial regulations necessary or 

appropriate to carry out the actions required by or authorized 

under this Act or proposed in the statement of administrative 

action submitted under section 101(a)(2) to implement the Agreement shall, to the maximum extent feasible, be issued within 1 

year after the date on which the Agreement enters into force. 

In the case of any implementing action that takes effect on a 

date after the date on which the Agreement enters into force, 

initial regulations to carry out that action shall, to the maximum 

extent feasible, be issued within 1 year after such effective date. 

SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE OF, PROCLAIMED ACTIONS. 

If a provision of this Act provides that the implementation 

of an action by the President by proclamation is subject to the 
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consultation and layover requirements of this section, such action 

may be proclaimed only if—

(1) the President has obtained advice regarding the proposed action from—

(A) the appropriate advisory committees established 

under section 135 of the Trade Act of 1974 (19 U.S.C. 

2155); and 

(B) the Commission; 

(2) the President has submitted to the Committee on 

Finance of the Senate and the Committee on Ways and Means 

of the House of Representatives a report that sets forth—

(A) the action proposed to be proclaimed and the reasons therefor; and 

(B) the advice obtained under paragraph (1); 

(3) a period of 60 calendar days, beginning on the first 

day on which the requirements set forth in paragraphs (1) 

and (2) have been met has expired; and 

(4) the President has consulted with such Committees 

regarding the proposed action during the period referred to 

in paragraph (3). 

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS. 

(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—The President 

is authorized to establish or designate within the Department of 

Commerce an office that shall be responsible for providing administrative assistance to panels established under chapter 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. 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. 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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TITLE II—CUSTOMS PROVISIONS 

SEC. 201. TARIFF MODIFICATIONS. 

(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.—

(1) PROCLAMATION AUTHORITY.—The President may proclaim—

(A) such modifications or continuation of any duty, 

(B) such continuation of duty-free or excise treatment, 

or 

(C) such additional duties, 

as the President determines to be necessary or appropriate 

to carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, 

and 3.28, and Annexes 3.3, 3.27, and 3.28 of the Agreement. 

(2) 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) 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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SEC. 202. 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) 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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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. 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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(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 builddown method:

AV–VNM RVC = ———— × 100 AV

(B) DEFINITIONS.—In subparagraph (A): 

(i) RVC.—The term ‘‘RVC’’ means the regional 

value-content of the good, expressed as a percentage. 

(ii) AV.—The term ‘‘AV’’ means the adjusted value 

of the good. 

(iii) VNM.—The term ‘‘VNM’’ means the value of 

nonoriginating materials 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 selfproduced. 

(3) BUILD-UP METHOD.—

(A) IN GENERAL.—The regional value-content of a good 

may be calculated on the basis of the following buildup method:

VOM

RVC = ———— × 100 AV

(B) DEFINITIONS.—In subparagraph (A): 

(i) RVC.—The term ‘‘RVC’’ means the regional 

value-content of the good, expressed as a percentage. 

(ii) AV.—The term ‘‘AV’’ means the adjusted value 

of the good. 

(iii) VOM.—The term ‘‘VOM’’ means the value of 

originating materials 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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(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–VNM

RVC = ———— × 100

NC

(B) DEFINITIONS.—In subparagraph (A): 

(i) AUTOMOTIVE GOOD.—The term ‘‘automotive 

good’’ means a good provided for in any of subheadings 

8407.31 through 8407.34, subheading 8408.20, heading 

8409, or 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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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 
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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. 
H. R. 3045—13

(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. 
H. R. 3045—14

(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. 
H. R. 3045—15

(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) 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—
H. R. 3045—16

(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 
H. R. 3045—17

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 
H. R. 3045—18

(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. 
H. R. 3045—19

(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 
H. R. 3045—20

authority of paragraph (1)(A), other than provisions of chapters 50 through 63, as included in Annex 4.1 of the Agreement. 

(B) ADDITIONAL PROCLAMATIONS.—Notwithstanding 

subparagraph (A), and subject to the consultation and layover provisions of section 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) 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 
H. R. 3045—21

the President does not have sufficient information to 

make a determination under clause (ii). 

(v) 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) 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) 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) 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) 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 procedures—

(i) governing the submission of a request under 

subparagraphs (C) and (E); and 

(ii) providing an opportunity for interested entities 

to submit comments and supporting evidence before 
H. R. 3045—22

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 AmericaUnited 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. 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) 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) 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. 
H. R. 3045—23

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) 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 RepublicCentral America-United States Free Trade Agreement 

Implementation Act. The procedures and penalties of this section that apply to a violation of subsection (a) also apply to 

a violation of this subsection. 

‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF INCORRECT

INFORMATION.—No penalty shall be imposed under this subsection if, promptly after an exporter or producer that issued 

a 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
H. R. 3045—24

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 RepublicCentral 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 
H. R. 3045—25

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. 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 
H. R. 3045—26

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. 
H. R. 3045—27

(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. 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. 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. 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 
H. R. 3045—28

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. COMMISSION ACTION ON PETITION. 

(a) 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 
H. R. 3045—29

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) 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. PROVISION OF RELIEF. 

(a) 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 
H. R. 3045—30

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) 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) The Commission shall publish notice of the 

commencement of any proceeding under this subparagraph 

in the Federal Register and shall, within a reasonable 

time thereafter, hold a public hearing at which the Commission shall afford interested parties and consumers an opportunity to be present, to present evidence, and to respond 

to the presentations of other parties and consumers, and 

otherwise to be heard. 

(iii) The 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 
H. R. 3045—31

(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. 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. 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 ACTION FOR RELIEF. 

(a) IN GENERAL.—A request under this subtitle for the purpose 

of adjusting to the obligations of the United States under the 

Agreement may be filed with the President by an interested party. 

Upon the filing of a request, the President shall review the request 

to determine, from information presented in the request, whether 

to commence consideration of the request. 

(b) PUBLICATION OF REQUEST.—If the President determines that 

the request under subsection (a) provides the information necessary 
H. R. 3045—32

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. 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. 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 
H. R. 3045—33

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. 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. 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. 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. 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. 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. FINDINGS AND ACTION ON GOODS OF CAFTA–DR COUNTRIES. 

(a) 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 
H. R. 3045—34

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) 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) ‘‘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) ‘‘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) ‘‘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) ‘‘Guatemala’’, effective on the date the President terminates the designation of Guatemala as a beneficiary country 

pursuant to section 201(a)(3); 

(5) ‘‘Honduras’’, effective on the date the President terminates the designation of Honduras as a beneficiary country 

pursuant to section 201(a)(3); and 
H. R. 3045—35

(6) ‘‘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. PERIODIC REPORTS AND MEETINGS ON LABOR OBLIGATIONS 

AND LABOR CAPACITY-BUILDING PROVISIONS. 

(a) REPORTS TO CONGRESS.—

(1) 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—
H. R. 3045—36

(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) 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; 
H. R. 3045—37

(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) 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).

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.