IB 

Union Calendar No. 125

108TH CONGRESS 

1ST SESSION H. R. 2738

[Report No. 108–224, Parts I and II] 

To implement the United States-Chile Free Trade Agreement. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 15, 2003

Mr. DELAY (for himself and Mr. RANGEL) (both by request) introduced the 

following bill; which was referred to the Committee on Ways and Means, 

and in addition to the Committee on the Judiciary, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

JULY 21, 2003

Reported from the Committee on Ways and Means 

JULY 21, 2003

Referral to the Committee on the Judiciary extended for a period ending not 

later than July 22, 2003

JULY 22, 2003

Reported from the Committee on the Judiciary; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 

A BILL

To implement the United States-Chile Free Trade 

Agreement.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘United States-Chile Free Trade Agreement Implementa6 tion Act’’. 

7 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING 

TO, THE AGREEMENT 

Sec. 101. Approval and entry into force of the agreement. 

Sec. 102. Relationship of the agreement to United States and State law. 

Sec. 103. Consultation and layover provisions for, and effective date of, proclaimed actions. 

Sec. 104. Implementing actions in anticipation of entry into force and initial 

regulations. 

Sec. 105. Administration of dispute settlement proceedings. 

Sec. 106. Arbitration of claims. 

Sec. 107. Effective dates; effect of termination. 

TITLE II—CUSTOMS PROVISIONS 

Sec. 201. Tariff modifications. 

Sec. 202. Rules of origin. 

Sec. 203. Drawback. 

Sec. 204. Customs user fees. 

Sec. 205. Disclosure of incorrect information; denial of preferential tariff treatment; false certificates of origin. 

Sec. 206. Reliquidation of entries. 

Sec. 207. Recordkeeping requirements. 

Sec. 208. Enforcement of textile and apparel rules of origin. 

Sec. 209. Conforming amendments. 

Sec. 210. Regulations. 

TITLE III—RELIEF FROM IMPORTS 

Sec. 301. Definitions. 

Subtitle A—Relief From Imports Benefiting From the Agreement 

Sec. 311. Commencing of action for relief. 

Sec. 312. Commission action on petition. 

Sec. 313. Provision of relief. 

Sec. 314. Termination of relief authority. 

Sec. 315. Compensation authority. 
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Sec. 316. Confidential business information. 

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. Business confidential information. 

TITLE IV—TEMPORARY ENTRY OF BUSINESS PERSONS 

Sec. 401. Nonimmigrant traders and investors. 

Sec. 402. Nonimmigrant professionals; labor attestation. 

Sec. 403. Labor disputes. 

Sec. 404. Conforming amendments.

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are—

3 (1) to approve and implement the Free Trade 

4 Agreement between the United States and the Re5 public of Chile entered into under the authority of 

6 section 2103(b) of the Bipartisan Trade Promotion 

7 Authority Act of 2002; 

8 (2) to strengthen and develop economic rela9 tions between the United States and Chile for their 

10 mutual benefit; 

11 (3) to establish free trade between the two na12 tions through the reduction and elimination of bar13 riers to trade in goods and services and to invest14 ment; and 

15 (4) to lay the foundation for further coopera16 tion to expand and enhance the benefits of such 

17 Agreement. 
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1 SEC. 3. DEFINITIONS. 

2 In this Act: 

3 (1) AGREEMENT.—The term ‘‘Agreement’’ 

4 means the United States-Chile Free Trade Agree5 ment approved by the Congress under section 

6 101(a)(1). 

7 (2) HTS.—The term ‘‘HTS’’ means the Har8 monized Tariff Schedule of the United States.

9 (3) TEXTILE OR APPAREL GOOD.—The term 

10 ‘‘textile or apparel good’’ means a good listed in the 

11 Annex to the Agreement on Textiles and Clothing 

12 referred to in section 101(d)(4) of the Uruguay 

13 Round Agreements Act (19 U.S.C. 3511(d)(4)). 

14 TITLE I—APPROVAL OF, AND 

15 GENERAL PROVISIONS RE16 LATING TO, THE AGREEMENT 

17 SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE 

18 AGREEMENT. 

19 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

20 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

21 the Bipartisan Trade Promotion Authority Act of 2002 

22 (19 U.S.C. 3805) and section 151 of the Trade Act of 

23 1974 (19 U.S.C. 2191), the Congress approves—

24 (1) the United States-Chile Free Trade Agree25 ment entered into on June 6, 2003, with the Gov-
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1 ernment of Chile and submitted to the Congress on 

2 July 15, 2003; and 

3 (2) the statement of administrative action pro4 posed to implement the Agreement that was sub5 mitted to the Congress on July 15, 2003. 

6 (b) CONDITIONS FOR ENTRY INTO FORCE OFTHE

7 AGREEMENT.—At such time as the President determines 

8 that Chile has taken measures necessary to bring it into 

9 compliance with the provisions of the Agreement that take 

10 effect on the date on which the Agreement enters into 

11 force, the President is authorized to exchange notes with 

12 the Government of Chile providing for the entry into force, 

13 on or after January 1, 2004, of the Agreement for the 

14 United States. 

15 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

16 STATES AND STATE LAW. 

17 (a) RELATIONSHIP TO UNITED STATES LAW.—

18 (1) UNITED STATES LAW TO PREVAIL IN CON19 FLICT.—No provision of the Agreement, nor the ap20 plication of any such provision to any person or cir21 cumstance, which is inconsistent with any law of the 

22 United States shall have effect. 

23 (2) CONSTRUCTION.—Nothing in this Act shall 

24 be construed—
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1 (A) to amend or modify any law of the 

2 United States, or

3 (B) to limit any authority conferred under 

4 any law of the United States, 

5 unless specifically provided for in this Act. 

6 (b) RELATIONSHIP OF AGREEMENT TO STATE

7 LAW.—

8 (1) LEGAL CHALLENGE.—No State law, or the 

9 application thereof, may be declared invalid as to 

10 any person or circumstance on the ground that the 

11 provision or application is inconsistent with the 

12 Agreement, except in an action brought by the 

13 United States for the purpose of declaring such law 

14 or application invalid. 

15 (2) DEFINITION OF STATE LAW.—For purposes 

16 of this subsection, the term ‘‘State law’’ includes—

17 (A) any law of a political subdivision of a 

18 State; and 

19 (B) any State law regulating or taxing the 

20 business of insurance. 

21 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI22 VATE REMEDIES.—No person other than the United 

23 States—
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1 (1) shall have any cause of action or defense 

2 under the Agreement or by virtue of Congressional 

3 approval thereof; or 

4 (2) may challenge, in any action brought under 

5 any provision of law, any action or inaction by any 

6 department, agency, or other instrumentality of the 

7 United States, any State, or any political subdivision 

8 of a State on the ground that such action or inaction 

9 is inconsistent with the Agreement. 

10 SEC. 103. CONSULTATION AND LAYOVER PROVISIONS FOR, 

11 AND EFFECTIVE DATE OF, PROCLAIMED AC12 TIONS. 

13 (a) CONSULTATION AND LAYOVER REQUIRE14 MENTS.—If a provision of this Act provides that the imple15 mentation of an action by the President by proclamation 

16 is subject to the consultation and layover requirements of 

17 this section, such action may be proclaimed only if—

18 (1) the President has obtained advice regarding 

19 the proposed action from—

20 (A) the appropriate advisory committees 

21 established under section 135 of the Trade Act 

22 of 1974 (19 U.S.C. 2155); and 

23 (B) the United States International Trade 

24 Commission; 
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1 (2) the President has submitted a report to the 

2 Committee on Ways and Means of the House of 

3 Representatives and the Committee on Finance of 

4 the Senate that sets forth—

5 (A) the action proposed to be proclaimed 

6 and the reasons therefor; and 

7 (B) the advice obtained under paragraph 

8 (1); 

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

10 the first day on which the requirements set forth in 

11 paragraphs (1) and (2) have been met has expired; 

12 and 

13 (4) the President has consulted with such Com14 mittees regarding the proposed action during the pe15 riod referred to in paragraph (3). 

16 (b) EFFECTIVE DATE OF CERTAIN PROCLAIMED AC17 TIONS.—Any action proclaimed by the President under the 

18 authority of this Act that is not subject to the consultation 

19 and layover provisions under subsection (a) may not take 

20 effect before the 15th day after the date on which the text 

21 of the proclamation is published in the Federal Register.

22 SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF 

23 ENTRY INTO FORCE AND INITIAL REGULA24 TIONS. 

25 (a) IMPLEMENTING ACTIONS.—
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1 (1) PROCLAMATION AUTHORITY.—After the 

2 date of enactment of this Act—

3 (A) the President may proclaim such ac4 tions, and 

5 (B) other appropriate officers of the 

6 United States Government may issue such reg7 ulations, 

8 as may be necessary to ensure that any provision of 

9 this Act, or amendment made by this Act, that takes 

10 effect on the date the Agreement enters into force

11 is appropriately implemented on such date, but no 

12 such proclamation or regulation may have an effec13 tive date earlier than the date of entry into force. 

14 (2) WAIVER OF15-DAY RESTRICTION.—The 15-

15 day restriction contained in section 103(b) on the 

16 taking effect of proclaimed actions is waived to the 

17 extent that the application of such restriction would 

18 prevent the taking effect on the date the Agreement 

19 enters into force of any action proclaimed under this 

20 section. 

21 (b) INITIAL REGULATIONS.—Initial regulations nec22 essary or appropriate to carry out the actions required by 

23 or authorized under this Act or proposed in the statement 

24 of administrative action referred to in section 101(a)(2) 

25 to implement the Agreement shall, to the maximum extent 
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1 feasible, be issued within 1 year after the date of entry 

2 into force of the Agreement. In the case of any imple3 menting action that takes effect on a date after the date 

4 of entry into force of the Agreement, initial regulations 

5 to carry out that action shall, to the maximum extent fea6 sible, be issued within 1 year after such effective date.–

7 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO8 CEEDINGS. 

9 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—

10 The President is authorized to establish or designate with11 in the Department of Commerce an office that shall be 

12 responsible for providing administrative assistance to pan13 els established under chapter 22 of the Agreement. The 

14 office may not be considered to be an agency for purposes 

15 of section 552 of title 5, United States Code. 

16 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated for each fiscal year after 

18 fiscal year 2003 to the Department of Commerce such 

19 sums as may be necessary for the establishment and oper20 ations of the office under subsection (a) and for the pay21 ment of the United States share of the expenses of panels 

22 established under chapter 22 of the Agreement. 

23 SEC. 106. ARBITRATION OF CLAIMS. 

24 (a) SUBMISSION OF CERTAIN CLAIMS.—The United 

25 States is authorized to resolve any claim against the 
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1 United States covered by article 10.15(1)(a)(i)(C) or 

2 10.15(1)(b)(i)(C) of the Agreement, pursuant to the In3 vestor-State Dispute Settlement procedures set forth in 

4 section B of chapter 10 of the Agreement.

5 (b) CONTRACT CLAUSES.—All contracts executed by 

6 any agency of the United States on or after the date of 

7 entry into force of the Agreement shall contain a clause 

8 specifying the law that will apply to resolve any breach 

9 of contract claim.

10 SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 

11 (a) EFFECTIVE DATES.—Except as provided in sub12 section (b), the provisions of this Act and the amendments 

13 made by this Act take effect on the date the Agreement 

14 enters into force. 

15 (b) EXCEPTIONS.—Sections 1 through 3 and this 

16 title take effect on the date of the enactment of this Act. 

17 (c) TERMINATION OFTHE AGREEMENT.—On the 

18 date on which the Agreement ceases to be in force, the 

19 provisions of this Act (other than this subsection) and the 

20 amendments made by this Act shall cease to be effective. 

21 TITLE II—CUSTOMS PROVISIONS 

22 SEC. 201. TARIFF MODIFICATIONS. 

23 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

24 AGREEMENT.—
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1 (1) PROCLAMATION AUTHORITY.—The Presi2 dent may proclaim—

3 (A) such modifications or continuation of 

4 any duty, 

5 (B) such continuation of duty-free or ex6 cise treatment, or 

7 (C) such additional duties, 

8 as the President determines to be necessary or ap9 propriate to carry out or apply articles 3.3, 3.7, 3.9, 

10 article 3.20 (8), (9), (10), and (11), and Annex 3.3 

11 of the Agreement. 

12 (2) EFFECT ON CHILEAN GSP STATUS.—Not13 withstanding section 502(a)(1) of the Trade Act of 

14 1974 (19 U.S.C. 2462(a)(1)), the President shall 

15 terminate the designation of Chile as a beneficiary 

16 developing country for purposes of title V of the 

17 Trade Act of 1974 on the date of entry into force 

18 of the Agreement. 

19 (b) OTHER TARIFF MODIFICATIONS.—Subject to the 

20 consultation and layover provisions of section 103(a), the 

21 President may proclaim—

22 (1) such modifications or continuation of any 

23 duty, 

24 (2) such modifications as the United States 

25 may agree to with Chile regarding the staging of any 
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1 duty treatment set forth in Annex 3.3 of the Agree2 ment, 

3 (3) such continuation of duty-free or excise 

4 treatment, or 

5 (4) such additional duties, 

6 as the President determines to be necessary or appropriate 

7 to maintain the general level of reciprocal and mutually 

8 advantageous concessions with respect to Chile provided 

9 for by the Agreement. 

10 (c) ADDITIONAL TARIFFS ON AGRICULTURAL SAFE11 GUARD GOODS.—

12 (1) IN GENERAL.—In addition to any duty pro13 claimed under subsection (a) or (b), and subject to 

14 paragraphs (3) through (5), the Secretary of the 

15 Treasury shall assess a duty, in the amount pre16 scribed under paragraph (2), on an agricultural safe17 guard good if the Secretary of the Treasury deter18 mines that the unit import price of the good when 

19 it enters the United States, determined on an 

20 F.O.B. basis, is less than the trigger price indicated 

21 for that good in Annex 3.18 of the Agreement or 

22 any amendment thereto. 

23 (2) CALCULATION OFADDITIONAL DUTY.—The 

24 amount of the additional duty assessed under this 

25 subsection shall be determined as follows: 
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1 (A) If the difference between the unit im2 port price and the trigger price is less than, or 

3 equal to, 10 percent of the trigger price, no ad4 ditional duty shall be imposed. 

5 (B) If the difference between the unit im6 port price and the trigger price is greater than 

7 10 percent, but less than or equal to 40 per8 cent, of the trigger price, the additional duty 

9 shall be equal to 30 percent of the difference 

10 between the preferential tariff rate and the col11 umn 1 general rate of duty imposed under the

12 HTS on like articles at the time the additional 

13 duty is imposed. 

14 (C) If the difference between the unit im15 port price and the trigger price is greater than 

16 40 percent, but less than or equal to 60 per17 cent, of the trigger price, the additional duty 

18 shall be equal to 50 percent of the difference 

19 between the preferential tariff rate and the col20 umn 1 general rate of duty imposed under the 

21 HTS on like articles at the time the additional 

22 duty is imposed. 

23 (D) If the difference between the unit im24 port price and the trigger price is greater than 

25 60 percent, but less than or equal to 75 per-
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1 cent, of the trigger price, the additional duty 

2 shall be equal to 70 percent of the difference 

3 between the preferential tariff rate and the col4 umn 1 general rate of duty imposed under the 

5 HTS on like articles at the time the additional 

6 duty is imposed. 

7 (E) If the difference between the unit im8 port price and the trigger price is greater than 

9 75 percent of the trigger price, the additional 

10 duty shall be equal to 100 percent of the dif11 ference between the preferential tariff rate and 

12 the column 1 general rate of duty imposed 

13 under the HTS on like articles at the time the 

14 additional duty is imposed. 

15 (3) EXCEPTIONS.—No additional duty under 

16 this subsection shall be assessed on an agricultural 

17 safeguard good if, at the time of entry, the good is 

18 subject to import relief under—

19 (A) subtitle A of title III of this Act; or 

20 (B) chapter 1 of title II of the Trade Act 

21 of 1974 (19 U.S.C. 2251 et seq.). 

22 (4) TERMINATION.—This subsection shall cease 

23 to apply on the date that is 12 years after the date 

24 on which the Agreement enters into force. 
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1 (5) TARIFF-RATE QUOTAS.—If an agricultural 

2 safeguard good is subject to a tariff-rate quota, and 

3 the in-quota duty rate for the good proclaimed pur4 suant to subsection (a) or (b) is zero, any additional

5 duty assessed under this subsection shall be applied 

6 only to over-quota imports of the good. 

7 (6) NOTICE.—Not later than 60 days after the 

8 Secretary of the Treasury first assesses additional 

9 duties on an agricultural safeguard good under this 

10 subsection, the Secretary shall notify the Govern11 ment of Chile in writing of such action and shall 

12 provide to the Government of Chile data supporting 

13 the assessment of additional duties. 

14 (7) MODIFICATION OF TRIGGER PRICES.—Not 

15 later than 60 calendar days before agreeing with the 

16 Government of Chile pursuant to article 3.18(2)(b) 

17 of the Agreement on a modification to a trigger 

18 price for a good listed in Annex 3.18 of the Agree19 ment, the President shall notify the Committees on 

20 Ways and Means and Agriculture of the House of 

21 Representatives and the Committees on Finance and 

22 Agriculture of the Senate of the proposed modifica23 tion and the reasons therefor. 

24 (8) DEFINITIONS.—In this subsection: 
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1 (A) AGRICULTURAL SAFEGUARD GOOD.—

2 The term ‘‘agricultural safeguard good’’ means 

3 a good—

4 (i) that qualifies as an originating 

5 good under section 202; 

6 (ii) that is included in the United 

7 States Agricultural Safeguard Product List 

8 set forth in Annex 3.18 of the Agreement; 

9 and 

10 (iii) for which a claim for preferential 

11 tariff treatment under the Agreement has 

12 been made. 

13 (B) F.O.B.—The term ‘‘F.O.B.’’ means 

14 free on board, regardless of the mode of trans15 portation, at the point of direct shipment by the 

16 seller to the buyer. 

17 (C) UNIT IMPORT PRICE.—The term ‘‘unit 

18 import price’’ means the price expressed in dol19 lars per kilogram.

20 (d) CONVERSION TO AD VALOREM RATES.—For pur21 poses of subsections (a) and (b), with respect to any good 

22 for which the base rate in the Schedule of the United 

23 States to Annex 3.3 of the Agreement is a specific or com24 pound rate of duty, the President may substitute for the 
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1 base rate an ad valorem rate that the President deter2 mines to be equivalent to the base rate. 

3 SEC. 202. RULES OF ORIGIN. 

4 (a) ORIGINATING GOODS.—

5 (1) IN GENERAL.—For purposes of this Act 

6 and for purposes of implementing the tariff treat7 ment provided for under the Agreement, except as 

8 otherwise provided in this section, a good is an origi9 nating good if—

10 (A) the good is wholly obtained or pro11 duced entirely in the territory of Chile, the 

12 United States, or both; 

13 (B) the good—

14 (i) is produced entirely in the territory 

15 of Chile, the United States, or both, and 

16 (I) each of the nonoriginating 

17 materials used in the production of 

18 the good undergoes an applicable 

19 change in tariff classification specified 

20 in Annex 4.1 of the Agreement, or 

21 (II) the good otherwise satisfies 

22 any applicable regional value-content 

23 or other requirements specified in 

24 Annex 4.1 of the Agreement; and 
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1 (ii) satisfies all other applicable re2 quirements of this section; or 

3 (C) the good is produced entirely in the 

4 territory of Chile, the United States, or both, 

5 exclusively from materials described in subpara6 graph (A) or (B). 

7 (2) SIMPLE COMBINATION OR MERE DILU8 TION.—A good shall not be considered to be an orig9 inating good and a material shall not be considered 

10 to be an originating material by virtue of having un11 dergone—

12 (A) simple combining or packaging oper13 ations; or

14 (B) mere dilution with water or another 

15 substance that does not materially alter the 

16 characteristics of the good or material. 

17 (b) DE MINIMIS AMOUNTS OF NONORIGINATING MA18 TERIALS.—

19 (1) IN GENERAL.—Except as provided in para20 graphs (2) and (3), a good that does not undergo a 

21 change in tariff classification pursuant to Annex 4.1 

22 of the Agreement is an originating good if—

23 (A) the value of all nonoriginating mate24 rials that are used in the production of the good 

25 and do not undergo the applicable change in 
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1 tariff classification does not exceed 10 percent 

2 of the adjusted value of the good; 

3 (B) the value of such nonoriginating mate4 rials is included in the value of nonoriginating 

5 materials for any applicable regional value-con6 tent requirement; and 

7 (C) the good meets all other applicable re8 quirements of this section. 

9 (2) EXCEPTIONS.—Paragraph (1) does not 

10 apply to the following: 

11 (A) A nonoriginating material provided for 

12 in chapter 4 of the HTS, or a nonoriginating 

13 dairy preparation containing over 10 percent by 

14 weight of milk solids provided for in subheading 

15 1901.90 or 2106.90 of the HTS, that is used 

16 in the production of a good provided for in 

17 chapter 4 of the HTS. 

18 (B) A nonoriginating material provided for 

19 in chapter 4 of the HTS, or nonoriginating 

20 dairy preparations containing over 10 percent 

21 by weight of milk solids provided for in sub22 heading 1901.90 of the HTS, that are used in 

23 the production of the following goods: 

24 (i) Infant preparations containing 

25 over 10 percent in weight of milk solids 
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1 provided for in subheading 1901.10 of the 

2 HTS. 

3 (ii) Mixes and doughs, containing over 

4 25 percent by weight of butterfat, not put 

5 up for retail sale, provided for in sub6 heading 1901.20 of the HTS.

7 (iii) Dairy preparations containing 

8 over 10 percent by weight of milk solids 

9 provided for in subheading 1901.90 or 

10 2106.90 of the HTS. 

11 (iv) Goods provided for in heading 

12 2105 of the HTS. 

13 (v) Beverages containing milk pro14 vided for in subheading 2202.90 of the 

15 HTS. 

16 (vi) Animal feeds containing over 10 

17 percent by weight of milk solids provided 

18 for in subheading 2309.90 of the HTS. 

19 (C) A nonoriginating material provided for 

20 in heading 0805 of the HTS, or any of sub21 headings 2009.11.00 through 2009.39 of the 

22 HTS, that is used in the production of a good 

23 provided for in any of subheadings 2009.11.00 

24 through 2009.39 of the HTS, or in fruit or veg25 etable juice of any single fruit or vegetable, for-
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1 tified with minerals or vitamins, concentrated 

2 or unconcentrated, provided for in subheading 

3 2106.90 or 2202.90 of the HTS. 

4 (D) A nonoriginating material provided for 

5 in chapter 15 of the HTS that is used in the 

6 production of a good provided for in any of 

7 headings 1501.00.00 through 1508, 1512, 

8 1514, and 1515 of the HTS. 

9 (E) A nonoriginating material provided for 

10 in heading 1701 of the HTS that is used in the 

11 production of a good provided for in any of 

12 headings 1701 through 1703 of the HTS.

13 (F) A nonoriginating material provided for 

14 in chapter 17 of the HTS or in heading 

15 1805.00.00 of the HTS that is used in the pro16 duction of a good provided for in subheading 

17 1806.10 of the HTS. 

18 (G) A nonoriginating material provided for 

19 in any of headings 2203 through 2208 of the 

20 HTS that is used in the production of a good 

21 provided for in heading 2207 or 2208 of the 

22 HTS. 

23 (H) A nonoriginating material used in the 

24 production of a good provided for in any of 

25 chapters 1 through 21 of the HTS, unless the 
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1 nonoriginating material is provided for in a dif2 ferent subheading than the good for which ori3 gin is being determined under this section. 

4 (3) GOODS PROVIDED FOR IN CHAPTERS 50

5 THROUGH 63 OFTHE HTS.—

6 (A) IN GENERAL.—Except as provided in 

7 subparagraph (B), a good provided for in any 

8 of chapters 50 through 63 of the HTS that is 

9 not an originating good because certain fibers 

10 or yarns used in the production of the compo11 nent of the good that determines the tariff clas12 sification of the good do not undergo an appli13 cable change in tariff classification set out in 

14 Annex 4.1 of the Agreement, shall be consid15 ered to be an originating good if the total 

16 weight of all such fibers or yarns in that com17 ponent is not more than 7 percent of the total 

18 weight of that component. 

19 (B) CERTAIN TEXTILE OR APPAREL

20 GOODS.—A textile or apparel good containing 

21 elastomeric yarns in the component of the good 

22 that determines the tariff classification of the 

23 good shall be considered to be an originating 

24 good only if such yarns are wholly formed in 

25 the territory of Chile or the United States. 
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1 (c) ACCUMULATION.—

2 (1) ORIGINATING GOODS INCORPORATED IN

3 GOODS OFOTHER COUNTRY.—Originating goods or 

4 materials of Chile or the United States that are in5 corporated into a good in the territory of the other 

6 country shall be considered to originate in the terri7 tory of the other country. 

8 (2) MULTIPLE PROCEDURES.—A good that is 

9 produced in the territory of Chile, the United States, 

10 or both, by 1 or more producers, is an originating 

11 good if the good satisfies the requirements of sub12 section (a) and all other applicable requirements of 

13 this section. 

14 (d) REGIONAL VALUE-CONTENT.—

15 (1) IN GENERAL.—For purposes of subsection 

16 (a)(2), the regional value-content of a good referred 

17 to in Annex 4.1 of the Agreement shall be cal18 culated, at the choice of the person claiming pref19 erential tariff treatment for the good, on the basis 

20 of the build-down method described in paragraph (2) 

21 or the build-up method described in paragraph (3), 

22 unless otherwise provided in Annex 4.1 of the Agree23 ment. 

24 (2) BUILD-DOWN METHOD.—
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1 (A) IN GENERAL.—The regional value-con2 tent of a good may be calculated on the basis 

3 of the following build-down method:

RVC =

AV - VNM 

× 100

AV 

4 (B) DEFINITIONS.—For purposes of sub5 paragraph (A): 

6 (i) The term ‘‘RVC’’ means the re7 gional value-content, expressed as a per8 centage. 

9 (ii) The term ‘‘AV’’ means the ad10 justed value. 

11 (iii) The term ‘‘VNM’’ means the 

12 value of nonoriginating materials used by 

13 the producer in the production of the good. 

14 (3) BUILD-UP METHOD.—

15 (A) IN GENERAL.—The regional value-con16 tent of a good may be calculated on the basis 

17 of the following build-up method:

RVC =

VOM 

× 100

AV 

18 (B) DEFINITIONS.—For purposes of sub19 paragraph (A): 

20 (i) The term ‘‘RVC’’ means the re21 gional value-content, expressed as a per22 centage. 
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1 (ii) The term ‘‘AV’’ means the ad2 justed value. 

3 (iii) The term ‘‘VOM’’ means the 

4 value of originating materials used by the 

5 producer in the production of the good. 

6 (e) VALUE OF MATERIALS.—

7 (1) IN GENERAL.—For purposes of calculating 

8 the regional value-content of a good under sub9 section (d), and for purposes of applying the de 

10 minimis rules under subsection (b), the value of a 

11 material is—

12 (A) in the case of a material that is im13 ported by the producer of the good, the ad14 justed value of the material with respect to that 

15 importation; 

16 (B) in the case of a material acquired in 

17 the territory in which the good is produced, ex18 cept for a material to which subparagraph (C) 

19 applies, the producer’s price actually paid or 

20 payable for the material; 

21 (C) in the case of a material provided to 

22 the producer without charge, or at a price re23 flecting a discount or similar reduction, the sum 

24 of—
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1 (i) all expenses incurred in the 

2 growth, production, or manufacture of the 

3 material, including general expenses; and 

4 (ii) an amount for profit; or 

5 (D) in the case of a material that is self6 produced, the sum of—

7 (i) all expenses incurred in the pro8 duction of the material, including general 

9 expenses; and 

10 (ii) an amount for profit. 

11 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

12 MATERIALS.—

13 (A) ORIGINATING MATERIALS.—The fol14 lowing expenses, if not included in the value of 

15 an originating material calculated under para16 graph (1), may be added to the value of the 

17 originating material: 

18 (i) The costs of freight, insurance, 

19 packing, and all other costs incurred in 

20 transporting the material to the location of 

21 the producer. 

22 (ii) Duties, taxes, and customs broker23 age fees on the material paid in the terri24 tory of Chile, the United States, or both, 

25 other than duties and taxes that are 
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1 waived, refunded, refundable, or otherwise 

2 recoverable, including credit against duty 

3 or tax paid or payable. 

4 (iii) The cost of waste and spoilage re5 sulting from the use of the material in the 

6 production of the good, less the value of 

7 renewable scrap or byproduct. 

8 (B) NONORIGINATING MATERIALS.—The 

9 following expenses, if included in the value of a 

10 nonoriginating material calculated under para11 graph (1), may be deducted from the value of 

12 the nonoriginating material: 

13 (i) The costs of freight, insurance, 

14 packing, and all other costs incurred in 

15 transporting the material to the location of 

16 the producer. 

17 (ii) Duties, taxes, and customs broker18 age fees on the material paid in the terri19 tory of Chile, the United States, or both, 

20 other than duties and taxes that are 

21 waived, refunded, refundable, or otherwise 

22 recoverable, including credit against duty 

23 or tax paid or payable. 

24 (iii) The cost of waste and spoilage re25 sulting from the use of the material in the 
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1 production of the good, less the value of 

2 renewable scrap or byproducts. 

3 (iv) The cost of originating materials 

4 used in the production of the nonorigi5 nating material in the territory of Chile or 

6 the United States. 

7 (f) ACCESSORIES, SPARE PARTS, OR TOOLS.—Acces8 sories, spare parts, or tools delivered with a good that 

9 form part of the good’s standard accessories, spare parts, 

10 or tools shall be regarded as a material used in the produc11 tion of the good, if—

12 (1) the accessories, spare parts, or tools are 

13 classified with and not invoiced separately from the 

14 good; and 

15 (2) the quantities and value of the accessories, 

16 spare parts, or tools are customary for the good. 

17 (g) FUNGIBLE GOODS AND MATERIALS.—

18 (1) IN GENERAL.—

19 (A) CLAIM FOR PREFERENTIAL TREAT20 MENT.—A person claiming preferential tariff 

21 treatment for a good may claim that a fungible 

22 good or material is originating either based on 

23 the physical segregation of each fungible good 

24 or material or by using an inventory manage25 ment method. 
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1 (B) INVENTORY MANAGEMENT METHOD.—

2 In this subsection, the term ‘‘inventory manage3 ment method’’ means—

4 (i) averaging; 

5 (ii) ‘‘last-in, first-out’’; 

6 (iii) ‘‘first-in, first-out’’; or 

7 (iv) any other method—

8 (I) recognized in the generally 

9 accepted accounting principles of the 

10 country in which the production is 

11 performed (whether Chile or the 

12 United States); or 

13 (II) otherwise accepted by that 

14 country. 

15 (2) ELECTION OFINVENTORY METHOD.—A 

16 person selecting an inventory management method 

17 under paragraph (1) for particular fungible goods or 

18 materials shall continue to use that method for those 

19 goods or materials throughout the fiscal year of that 

20 person. 

21 (h) PACKAGING MATERIALS AND CONTAINERS FOR

22 RETAIL SALE.—Packaging materials and containers in 

23 which a good is packaged for retail sale, if classified with 

24 the good, shall be disregarded in determining whether all 

25 nonoriginating materials used in the production of the 
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1 good undergo the applicable change in tariff classification 

2 set out in Annex 4.1 of the Agreement, and, if the good 

3 is subject to a regional value-content requirement, the 

4 value of such packaging materials and containers shall be

5 taken into account as originating or nonoriginating mate6 rials, as the case may be, in calculating the regional value7 content of the good.

8 (i) PACKING MATERIALS AND CONTAINERS FOR

9 SHIPMENT.—Packing materials and containers for ship10 ment shall be disregarded in determining whether—

11 (1) the nonoriginating materials used in the 

12 production of the good undergo an applicable change 

13 in tariff classification set out in Annex 4.1 of the 

14 Agreement; and 

15 (2) the good satisfies a regional value-content 

16 requirement. 

17 (j) INDIRECT MATERIALS.—An indirect material 

18 shall be considered to be an originating material without 

19 regard to where it is produced. 

20 (k) TRANSIT AND TRANSSHIPMENT.—A good that 

21 has undergone production necessary to qualify as an origi22 nating good under subsection (a) shall not be considered 

23 to be an originating good if, subsequent to that produc24 tion, the good undergoes further production or any other 

25 operation outside the territory of Chile or the United 
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1 States, other than unloading, reloading, or any other proc2 ess necessary to preserve the good in good condition or 

3 to transport the good to the territory of Chile or the 

4 United States.

5 (l) TEXTILE AND APPAREL GOODS CLASSIFIABLE AS

6 GOODS PUT UP IN SETS.—Notwithstanding the rules set 

7 forth in Annex 4.1 of the Agreement, textile and apparel 

8 goods classifiable as goods put up in sets for retail sale 

9 as provided for in General Rule of Interpretation 3 of the 

10 Harmonized System shall not be considered to be origi11 nating goods unless each of the goods in the set is an origi12 nating good or the total value of the nonoriginating goods 

13 in the set does not exceed 10 percent of the value of the 

14 set determined for purposes of assessing customs duties. 

15 (m) APPLICATION AND INTERPRETATION.—In this 

16 section: 

17 (1) The basis for any tariff classification is the 

18 HTS.

19 (2) Any cost or value referred to in this section 

20 shall be recorded and maintained in accordance with 

21 the generally accepted accounting principles applica22 ble in the territory of the country in which the good 

23 is produced (whether Chile or the United States). 

24 (n) DEFINITIONS.—In this section: 
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1 (1) ADJUSTED VALUE.—The term ‘‘adjusted 

2 value’’ means the value determined in accordance 

3 with articles 1 through 8, article 15, and the cor4 responding interpretive notes of the Agreement on 

5 Implementation of Article VII of the General Agree6 ment on Tariffs and Trade 1994 referred to in sec7 tion 101(d)(8) of the Uruguay Round Agreements 

8 Act, except that such value may be adjusted to ex9 clude any costs, charges, or expenses incurred for 

10 transportation, insurance, and related services inci11 dent to the international shipment of the merchan12 dise from the country of exportation to the place of 

13 importation. 

14 (2) FUNGIBLE GOODS OR FUNGIBLE MATE15 RIALS.—The terms ‘‘fungible goods’’ and ‘‘fungible 

16 materials’’ mean goods or materials, as the case may 

17 be, that are interchangeable for commercial purposes 

18 and the properties of which are essentially identical. 

19 (3) GENERALLY ACCEPTED ACCOUNTING PRIN20 CIPLES.—The term ‘‘generally accepted accounting 

21 principles’’ means the principles, rules, and proce22 dures, including both broad and specific guidelines, 

23 that define the accounting practices accepted in the 

24 territory of Chile or the United States, as the case 

25 may be.
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1 (4) GOODS WHOLLY OBTAINED OR PRODUCED

2 ENTIRELY IN THE TERRITORY OFCHILE, THE

3 UNITED STATES, OR BOTH.—The term ‘‘goods whol4 ly obtained or produced entirely in the territory of 

5 Chile, the United States, or both’’ means—

6 (A) mineral goods extracted in the terri7 tory of Chile, the United States, or both; 

8 (B) vegetable goods, as such goods are de9 fined in the Harmonized System, harvested in 

10 the territory of Chile, the United States, or 

11 both; 

12 (C) live animals born and raised in the ter13 ritory of Chile, the United States, or both; 

14 (D) goods obtained from hunting, trap15 ping, or fishing in the territory of Chile, the 

16 United States, or both; 

17 (E) goods (fish, shellfish, and other marine 

18 life) taken from the sea by vessels registered or 

19 recorded with Chile or the United States and 

20 flying the flag of that country; 

21 (F) goods produced on board factory ships 

22 from the goods referred to in subparagraph 

23 (E), if such factory ships are registered or re24 corded with Chile or the United States and fly 

25 the flag of that country; 
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1 (G) goods taken by Chile or the United 

2 States or a person of Chile or the United States 

3 from the seabed or beneath the seabed outside 

4 territorial waters, if Chile or the United States 

5 has rights to exploit such seabed; 

6 (H) goods taken from outer space, if the 

7 goods are obtained by Chile or the United 

8 States or a person of Chile or the United States 

9 and not processed in the territory of a country 

10 other than Chile or the United States; 

11 (I) waste and scrap derived from—

12 (i) production in the territory of Chile, 

13 the United States, or both; or 

14 (ii) used goods collected in the terri15 tory of Chile, the United States, or both, 

16 if such goods are fit only for the recovery 

17 of raw materials; 

18 (J) recovered goods derived in the territory 

19 of Chile or the United States from used goods, 

20 and used in the territory of that country in the 

21 production of remanufactured goods; and 

22 (K) goods produced in the territory of 

23 Chile, the United States, or both, exclusively—

24 (i) from goods referred to in any of 

25 subparagraphs (A) through (I), or 
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1 (ii) from the derivatives of goods re2 ferred to in clause (i), 

3 at any stage of production.

4 (5) HARMONIZED SYSTEM.—The term ‘‘Har5 monized System’’ means the Harmonized Com6 modity Description and Coding System.

7 (6) INDIRECT MATERIAL.—The term ‘‘indirect 

8 material’’ means a good used in the production, test9 ing, or inspection of a good but not physically incor10 porated into the good, or a good used in the mainte11 nance of buildings or the operation of equipment as12 sociated with the production of a good, including—

13 (A) fuel and energy; 

14 (B) tools, dies, and molds; 

15 (C) spare parts and materials used in the 

16 maintenance of equipment or buildings; 

17 (D) lubricants, greases, compounding ma18 terials, and other materials used in production 

19 or used to operate equipment or buildings; 

20 (E) gloves, glasses, footwear, clothing, 

21 safety equipment, and supplies; 

22 (F) equipment, devices, and supplies used 

23 for testing or inspecting the good; 

24 (G) catalysts and solvents; and 
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1 (H) any other goods that are not incor2 porated into the good but the use of which in 

3 the production of the good can reasonably be 

4 demonstrated to be a part of that production. 

5 (7) MATERIAL.—The term ‘‘material’’ means a 

6 good that is used in the production of another good, 

7 including a part, ingredient, or indirect material. 

8 (8) MATERIAL THAT IS SELF-PRODUCED.—The 

9 term ‘‘material that is self-produced’’ means a mate10 rial that is an originating good produced by a pro11 ducer of a good and used in the production of that 

12 good. 

13 (9) NONORIGINATING GOOD OR NONORIGI14 NATING MATERIAL.—The terms ‘‘nonoriginating 

15 good’’ and ‘‘nonoriginating material’’ mean a good 

16 or material, as the case may be, that does not qual17 ify as an originating good under this section. 

18 (10) PACKING MATERIALS AND CONTAINERS

19 FOR SHIPMENT.—The term ‘‘packing materials and 

20 containers for shipment’’ means the goods used to 

21 protect a good during its transportation, and does 

22 not include the packaging materials and containers 

23 in which a good is packaged for retail sale. 

24 (11) PREFERENTIAL TARIFF TREATMENT.—

25 The term ‘‘preferential tariff treatment’’ means the 
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1 customs duty rate that is applicable to an origi2 nating good pursuant to chapter 3 of the Agree3 ment. 

4 (12) PRODUCER.—The term ‘‘producer’’ means 

5 a person who engages in the production of a good 

6 in the territory of Chile or the United States. 

7 (13) PRODUCTION.—The term ‘‘production’’ 

8 means growing, mining, harvesting, fishing, raising, 

9 trapping, hunting, manufacturing, processing, as10 sembling, or disassembling a good. 

11 (14) RECOVERED GOODS.—

12 (A) IN GENERAL.—The term ‘‘recovered 

13 goods’’ means materials in the form of indi14 vidual parts that are the result of—

15 (i) the complete disassembly of used 

16 goods into individual parts; and 

17 (ii) the cleaning, inspecting, testing, 

18 or other processing of those parts as nec19 essary for improvement to sound working 

20 condition by one or more of the processes 

21 described in subparagraph (B), in order 

22 for such parts to be assembled with other 

23 parts, including other parts that have un24 dergone the processes described in this 
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1 paragraph, in the production of a remanu2 factured good. 

3 (B) PROCESSES.—The processes referred 

4 to in subparagraph (A)(ii) are welding, flame 

5 spraying, surface machining, knurling, plating, 

6 sleeving, and rewinding. 

7 (15) REMANUFACTURED GOOD.—The term ‘‘re8 manufactured good’’ means an industrial good as9 sembled in the territory of Chile or the United 

10 States, that is listed in Annex 4.18 of the Agree11 ment, and— 

12 (A) is entirely or partially comprised of re13 covered goods; 

14 (B) has the same life expectancy and 

15 meets the same performance standards as a 

16 new good; and 

17 (C) enjoys the same factory warranty as 

18 such a new good.

19 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.—

20 (1) IN GENERAL.—The President is authorized 

21 to proclaim, as part of the HTS—

22 (A) the provisions set out in Annex 4.1 of 

23 the Agreement; and 
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1 (B) any additional subordinate category 

2 necessary to carry out this title consistent with 

3 the Agreement. 

4 (2) MODIFICATIONS.—

5 (A) IN GENERAL.—Subject to the consulta6 tion and layover provisions of section 103(a), 

7 the President may proclaim modifications to the 

8 provisions proclaimed under the authority of 

9 paragraph (1)(A), other than provisions of 

10 chapters 50 through 63 of the HTS, as in11 cluded in Annex 4.1 of the Agreement. 

12 (B) ADDITIONAL PROCLAMATIONS.—Not13 withstanding subparagraph (A), and subject to

14 the consultation and layover provisions of sec15 tion 103(a), the President may proclaim—

16 (i) modifications to the provisions pro17 claimed under the authority of paragraph 

18 (1)(A) that are necessary to implement an 

19 agreement with Chile pursuant to article 

20 3.20(5) of the Agreement; and 

21 (ii) before the 1st anniversary of the 

22 date of the enactment of this Act, modi23 fications to correct any typographical, cler24 ical, or other nonsubstantive technical 

25 error regarding the provisions of chapters 
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1 50 through 63 of the HTS, as included in 

2 Annex 4.1 of the Agreement.

3 SEC. 203. DRAWBACK. 

4 (a) DEFINITION OF A GOOD SUBJECT TO CHILE FTA 

5 DRAWBACK.—For purposes of this Act and the amend6 ments made by subsection (b), the term ‘‘good subject to

7 Chile FTA drawback’’ means any imported good other 

8 than the following: 

9 (1) A good entered under bond for transpor10 tation and exportation to Chile. 

11 (2)(A) A good exported to Chile in the same 

12 condition as when imported into the United States. 

13 (B) For purposes of subparagraph (A)—

14 (i) processes such as testing, cleaning, re15 packing, inspecting, sorting, or marking a good, 

16 or preserving it in its same condition, shall not 

17 be considered to change the condition of the 

18 good; and 

19 (ii) if a good described in subparagraph 

20 (A) is commingled with fungible goods and ex21 ported in the same condition, the origin of the 

22 good for the purposes of subsection (j)(1) of 

23 section 313 of the Tariff Act of 1930 (19 

24 U.S.C. 1313(j)(1)) may be determined on the 
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1 basis of the inventory methods provided for in 

2 the regulations implementing this title.

3 (3) A good—

4 (A) that is—

5 (i) deemed to be exported from the 

6 United States; 

7 (ii) used as a material in the produc8 tion of another good that is deemed to be 

9 exported to Chile; or 

10 (iii) substituted for by a good of the 

11 same kind and quality that is used as a 

12 material in the production of another good 

13 that is deemed to be exported to Chile; and 

14 (B) that is delivered—

15 (i) to a duty-free shop; 

16 (ii) for ship’s stores or supplies for a 

17 ship or aircraft; or 

18 (iii) for use in a project undertaken 

19 jointly by the United States and Chile and 

20 destined to become the property of the 

21 United States. 

22 (4) A good exported to Chile for which a refund 

23 of customs duties is granted by reason of—

24 (A) the failure of the good to conform to 

25 sample or specification; or 
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1 (B) the shipment of the good without the 

2 consent of the consignee. 

3 (5) A good that qualifies under the rules of ori4 gin set out in section 202 that is—

5 (A) exported to Chile; 

6 (B) used as a material in the production of 

7 another good that is exported to Chile; or 

8 (C) substituted for by a good of the same 

9 kind and quality that is used as a material in 

10 the production of another good that is exported 

11 to Chile. 

12 (b) CONSEQUENTIAL AMENDMENTS.—

13 (1) BONDED MANUFACTURING WAREHOUSES.—

14 Section 311 of the Tariff Act of 1930 (19 U.S.C. 

15 1311) is amended by adding at the end the following 

16 new paragraph: 

17 ‘‘No article manufactured in a bonded warehouse 

18 from materials that are goods subject to Chile FTA draw19 back, as defined in section 203(a) of the United States20 Chile Free Trade Agreement Implementation Act, may be 

21 withdrawn from warehouse for exportation to Chile with22 out assessment of a duty on the materials in their condi23 tion and quantity, and at their weight, at the time of im24 portation into the United States. The duty shall be paid 
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1 before the 61st day after the date of exportation, except 

2 that the duty may be waived or reduced by—

3 ‘‘(1) 100 percent during the 8-year period be4 ginning on January 1, 2004; 

5 ‘‘(2) 75 percent during the 1-year period begin6 ning on January 1, 2012; 

7 ‘‘(3) 50 percent during the 1-year period begin8 ning on January 1, 2013; and 

9 ‘‘(4) 25 percent during the 1-year period begin10 ning on January 1, 2014.’’.

11 (2) BONDED SMELTING AND REFINING WARE12 HOUSES.—Section 312 of the Tariff Act of 1930 (19 

13 U.S.C. 1312) is amended—

14 (A) in paragraph (1) of subsection (b), by 

15 striking ‘‘except that’’ and all that follows 

16 through subparagraph (B) and inserting the 

17 following: ‘‘except that—

18 ‘‘(A) in the case of a withdrawal for expor19 tation of such a product to a NAFTA country, 

20 as defined in section 2(4) of the North Amer21 ican Free Trade Agreement Implementation 

22 Act, if any of the imported metal-bearing mate23 rials are goods subject to NAFTA drawback, as 

24 defined in section 203(a) of that Act, the duties 

25 on the materials shall be paid, and the charges 
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1 against the bond canceled, before the 61st day 

2 after the date of exportation; but upon the pres3 entation, before such 61st day, of satisfactory 

4 evidence of the amount of any customs duties 

5 paid to the NAFTA country on the product, the 

6 duties on the materials may be waived or re7 duced (subject to section 508(b)(2)(B)) in an 

8 amount that does not exceed the lesser of—

9 ‘‘(i) the total amount of customs du10 ties owed on the materials on importation 

11 into the United States, or 

12 ‘‘(ii) the total amount of customs du13 ties paid to the NAFTA country on the 

14 product, and

15 ‘‘(B) in the case of a withdrawal for expor16 tation of such a product to Chile, if any of the 

17 imported metal-bearing materials are goods 

18 subject to Chile FTA drawback, as defined in 

19 section 203(a) of the United States-Chile Free 

20 Trade Agreement Implementation Act, the du21 ties on the materials shall be paid, and the 

22 charges against the bond canceled, before the 

23 61st day after the date of exportation, except 

24 that the duties may be waived or reduced by—
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1 ‘‘(i) 100 percent during the 8-year pe2 riod beginning on January 1, 2004, 

3 ‘‘(ii) 75 percent during the 1-year pe4 riod beginning on January 1, 2012, 

5 ‘‘(iii) 50 percent during the 1-year pe6 riod beginning on January 1, 2013, and

7 ‘‘(iv) 25 percent during the 1-year pe8 riod beginning on January 1, 2014, or’’; 

9 (B) in paragraph (4) of subsection (b), by 

10 striking ‘‘except that’’ and all that follows 

11 through subparagraph (B) and inserting the 

12 following: ‘‘except that—

13 ‘‘(A) in the case of a withdrawal for expor14 tation of such a product to a NAFTA country, 

15 as defined in section 2(4) of the North Amer16 ican Free Trade Agreement Implementation 

17 Act, if any of the imported metal-bearing mate18 rials are goods subject to NAFTA drawback, as 

19 defined in section 203(a) of that Act, the duties 

20 on the materials shall be paid, and the charges 

21 against the bond canceled, before the 61st day 

22 after the date of exportation; but upon the pres23 entation, before such 61st day, of satisfactory 

24 evidence of the amount of any customs duties 

25 paid to the NAFTA country on the product, the 
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1 duties on the materials may be waived or re2 duced (subject to section 508(b)(2)(B)) in an 

3 amount that does not exceed the lesser of—

4 ‘‘(i) the total amount of customs du5 ties owed on the materials on importation 

6 into the United States, or 

7 ‘‘(ii) the total amount of customs du8 ties paid to the NAFTA country on the 

9 product, and

10 ‘‘(B) in the case of a withdrawal for expor11 tation of such a product to Chile, if any of the 

12 imported metal-bearing materials are goods 

13 subject to Chile FTA drawback, as defined in 

14 section 203(a) of the United States-Chile Free 

15 Trade Agreement Implementation Act, the du16 ties on the materials shall be paid, and the 

17 charges against the bond canceled, before the 

18 61st day after the date of exportation, except 

19 that the duties may be waived or reduced by—

20 ‘‘(i) 100 percent during the 8-year pe21 riod beginning on January 1, 2004, 

22 ‘‘(ii) 75 percent during the 1-year pe23 riod beginning on January 1, 2012, 

24 ‘‘(iii) 50 percent during the 1-year pe25 riod beginning on January 1, 2013, and 
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1 ‘‘(iv) 25 percent during the 1-year pe2 riod beginning on January 1, 2014, or’’; 

3 and 

4 (C) in subsection (d), in the matter pre5 ceding paragraph (1), by striking ‘‘except that’’ 

6 and all that follows through the end of para7 graph (2) and inserting the following: ‘‘except 

8 that—

9 ‘‘(1) in the case of a withdrawal for exportation 

10 to a NAFTA country, as defined in section 2(4) of 

11 the North American Free Trade Agreement Imple12 mentation Act, if any of the imported metal-bearing 

13 materials are goods subject to NAFTA drawback, as 

14 defined in section 203(a) of that Act, charges 

15 against the bond shall be paid before the 61st day 

16 after the date of exportation; but upon the presen17 tation, before such 61st day, of satisfactory evidence 

18 of the amount of any customs duties paid to the 

19 NAFTA country on the product, the bond shall be 

20 credited (subject to section 508(b)(2)(B)) in an 

21 amount not to exceed the lesser of—

22 ‘‘(A) the total amount of customs duties 

23 paid or owed on the materials on importation 

24 into the United States, or 
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1 ‘‘(B) the total amount of customs duties 

2 paid to the NAFTA country on the product; 

3 and

4 ‘‘(2) in the case of a withdrawal for exportation 

5 to Chile, if any of the imported metal-bearing mate6 rials are goods subject to Chile FTA drawback, as 

7 defined in section 203(a) of the United States-Chile 

8 Free Trade Agreement Implementation Act, charges 

9 against the bond shall be paid before the 61st day 

10 after the date of exportation, and the bond shall be 

11 credited in an amount equal to—

12 ‘‘(A) 100 percent of the total amount of 

13 customs duties paid or owed on the materials 

14 on importation into the United States during 

15 the 8-year period beginning on January 1, 

16 2004, 

17 ‘‘(B) 75 percent of the total amount of 

18 customs duties paid or owed on the materials 

19 on importation into the United States during 

20 the 1-year period beginning on January 1, 

21 2012, 

22 ‘‘(C) 50 percent of the total amount of 

23 customs duties paid or owed on the materials 

24 on importation into the United States during 
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1 the 1-year period beginning on January 1, 

2 2013, and 

3 ‘‘(D) 25 percent of the total amount of 

4 customs duties paid or owed on the materials 

5 on importation into the United States during 

6 the 1-year period beginning on January 1, 

7 2014.’’. 

8 (3) DRAWBACK.—Section 313 of the Tariff Act 

9 of 1930 (19 U.S.C. 1313) is amended—

10 (A) in paragraph (4) of subsection (j)—

11 (i) by striking ‘‘(4)’’ and inserting 

12 ‘‘(4)(A)’’; and 

13 (ii) by adding at the end the following 

14 new subparagraph: 

15 ‘‘(B) Beginning on January 1, 2015, the expor16 tation to Chile of merchandise that is fungible with 

17 and substituted for imported merchandise, other

18 than merchandise described in paragraphs (1) 

19 through (5) of section 203(a) of the United States20 Chile Free Trade Agreement Implementation Act, 

21 shall not constitute an exportation for purposes of 

22 paragraph (2). The preceding sentence shall not be 

23 construed to permit the substitution of unused draw24 back under paragraph (2) of this subsection with re25 spect to merchandise described in paragraph (2) of 
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1 section 203(a) of the United States-Chile Free 

2 Trade Agreement Implementation Act.’’; 

3 (B) in subsection (n)—

4 (i) by striking ‘‘(n)’’ and inserting the 

5 following: 

6 ‘‘(n) REFUNDS, WAIVERS, OR REDUCTIONS UNDER

7 CERTAIN FREE TRADE AGREEMENTS.—’’;

8 (ii) in paragraph (1)—

9 (I) by striking ‘‘; and’’ at the end 

10 of subparagraph (B); 

11 (II) by striking the period at the 

12 end of subparagraph (C) and insert13 ing ‘‘; and’’; and 

14 (III) by adding at the end the 

15 following new subparagraph: 

16 ‘‘(D) the term ‘good subject to Chile FTA 

17 drawback’ has the meaning given that term in sec18 tion 203(a) of the United States-Chile Free Trade 

19 Agreement Implementation Act.’’; and 

20 (iii) by adding the following new para21 graph at the end: 

22 ‘‘(4)(A) For purposes of subsections (a), (b), (f), (h), 

23 (j)(2), (p), and (q), if an article that is exported to Chile 

24 is a good subject to Chile FTA drawback, no customs du-
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1 ties on the good may be refunded, waived, or reduced, ex2 cept as provided in subparagraph (B). 

3 ‘‘(B) The customs duties referred to in subparagraph 

4 (A) may be refunded, waived, or reduced by—

5 ‘‘(i) 100 percent during the 8-year period begin6 ning on January 1, 2004; 

7 ‘‘(ii) 75 percent during the 1-year period begin8 ning on January 1, 2012; 

9 ‘‘(iii) 50 percent during the 1-year period begin10 ning on January 1, 2013; and 

11 ‘‘(iv) 25 percent during the 1-year period begin12 ning on January 1, 2014.’’; and 

13 (C) in subsection (o)—

14 (i) by striking ‘‘(o)’’ and inserting the 

15 following: 

16 ‘‘(o) SPECIAL RULES FOR CERTAIN VESSELS AND

17 IMPORTED MATERIALS.—’’; and 

18 (ii) by adding at the end the following 

19 new paragraphs: 

20 ‘‘(3) For purposes of subsection (g), if—

21 ‘‘(A) a vessel is built for the account and own22 ership of a resident of Chile or the Government of 

23 Chile, and 

24 ‘‘(B) imported materials that are used in the 

25 construction and equipment of the vessel are goods 
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1 subject to Chile FTA drawback, as defined in sec2 tion 203(a) of the United States-Chile Free Trade 

3 Agreement Implementation Act, 

4 no customs duties on such materials may be refunded, 

5 waived, or reduced, except as provided in paragraph (4). 

6 ‘‘(4) The customs duties referred to in paragraph (3) 

7 may be refunded, waived or reduced by—

8 ‘‘(A) 100 percent during the 8-year period be9 ginning on January 1, 2004; 

10 ‘‘(B) 75 percent during the 1-year period begin11 ning on January 1, 2012; 

12 ‘‘(C) 50 percent during the 1-year period begin13 ning on January 1, 2013; and 

14 ‘‘(D) 25 percent during the 1-year period begin15 ning on January 1, 2014.’’. 

16 (4) MANIPULATION IN WAREHOUSE.—Section 

17 562 of the Tariff Act of 1930 (19 U.S.C. 1562) is 

18 amended—

19 (A) in paragraph (3), by striking ‘‘to a 

20 NAFTA country’’ and inserting ‘‘to Chile, to a 

21 NAFTA country,’’; 

22 (B) by striking ‘‘; and’’ at the end of para23 graph (4)(B); 

24 (C) by striking the period at the end of 

25 paragraph (5) and inserting ‘‘; and’’; and 
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1 (D) by inserting after paragraph (5) the 

2 following: 

3 ‘‘(6)(A) without payment of duties for expor4 tation to Chile, if the merchandise is of a kind de5 scribed in any of paragraphs (1) through (5) of sec6 tion 203(a) of the United States-Chile Free Trade 

7 Agreement Implementation Act; and 

8 ‘‘(B) for exportation to Chile if the merchandise 

9 consists of goods subject to Chile FTA drawback, as 

10 defined in section 203(a) of the United States-Chile 

11 Free Trade Agreement Implementation Act, except 

12 that—

13 ‘‘(i) the merchandise may not be with14 drawn from warehouse without assessment of a 

15 duty on the merchandise in its condition and 

16 quantity, and at its weight, at the time of with17 drawal from the warehouse with such additions 

18 to, or deductions from, the final appraised value 

19 as may be necessary by reason of a change in 

20 condition, and 

21 ‘‘(ii) duty shall be paid on the merchandise 

22 before the 61st day after the date of expor23 tation, except that such duties may be waived 

24 or reduced by—
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1 ‘‘(I) 100 percent during the 8-year pe2 riod beginning on January 1, 2004, 

3 ‘‘(II) 75 percent during the 1-year pe4 riod beginning on January 1, 2012, 

5 ‘‘(III) 50 percent during the 1-year 

6 period beginning on January 1, 2013, and 

7 ‘‘(IV) 25 percent during the 1-year 

8 period beginning on January 1, 2014.’’. 

9 (5) FOREIGN TRADE ZONES.—Section 3(a) of 

10 the Act of June 18, 1934 (commonly known as the 

11 ‘‘Foreign Trade Zones Act’’; 19 U.S.C. 81c(a)) is 

12 amended by striking the end period and inserting 

13 the following: ‘‘: Provided further, That no merchan14 dise that consists of goods subject to Chile FTA 

15 drawback, as defined in section 203(a) of the United 

16 States-Chile Free Trade Agreement Implementation

17 Act, that is manufactured or otherwise changed in 

18 condition shall be exported to Chile without an as19 sessment of a duty on the merchandise in its condi20 tion and quantity, and at its weight, at the time of 

21 its exportation (or if the privilege in the first proviso 

22 to this subsection was requested, an assessment of 

23 a duty on the merchandise in its condition and 

24 quantity, and at its weight, at the time of its admis25 sion into the zone) and the payment of the assessed 
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1 duty before the 61st day after the date of expor2 tation of the article, except that the customs duty 

3 may be waived or reduced by (1) 100 percent during 

4 the 8-year period beginning on January 1, 2004; (2) 

5 75 percent during the 1-year period beginning on 

6 January 1, 2012; (3) 50 percent during the 1-year 

7 period beginning on January 1, 2013; and (4) 25

8 percent during the 1-year period beginning on Janu9 ary 1, 2014.’’. 

10 (c) INAPPLICABILITY TO COUNTERVAILING AND

11 ANTIDUMPING DUTIES.—Nothing in this section or the 

12 amendments made by this section shall be considered to 

13 authorize the refund, waiver, or reduction of counter14 vailing duties or antidumping duties imposed on an im15 ported good. 

16 SEC. 204. CUSTOMS USER FEES. 

17 Section 13031(b) of the Consolidated Omnibus Budg18 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

19 amended by inserting after paragraph (11) the following: 

20 ‘‘(12) No fee may be charged under subsection (a) 

21 (9) or (10) with respect to goods that qualify as origi22 nating goods under section 202 of the United States-Chile 

23 Free Trade Agreement Implementation Act. Any service 

24 for which an exemption from such fee is provided by rea-
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1 son of this paragraph may not be funded with money con2 tained in the Customs User Fee Account.’’. 

3 SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; DE4 NIAL OF PREFERENTIAL TARIFF TREAT5 MENT; FALSE CERTIFICATES OF ORIGIN. 

6 (a) DISCLOSURE OF INCORRECT INFORMATION.—

7 Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) 

8 is amended—

9 (1) in subsection (c)—

10 (A) by redesignating paragraph (6) as 

11 paragraph (7); and 

12 (B) by inserting after paragraph (5) the 

13 following new paragraph: 

14 ‘‘(6) PRIOR DISCLOSURE REGARDING CLAIMS

15 UNDER THE UNITED STATES-CHILE FREE TRADE

16 AGREEMENT.—An importer shall not be subject to 

17 penalties under subsection (a) for making an incor18 rect claim that a good qualifies as an originating 

19 good under section 202 of the United States-Chile 

20 Free Trade Agreement Implementation Act if the 

21 importer, in accordance with regulations issued by 

22 the Secretary of the Treasury, voluntarily makes a 

23 corrected declaration and pays any duties owing.’’; 

24 and 
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1 (2) by adding at the end the following new sub2 section: 

3 ‘‘(g) FALSE CERTIFICATIONS OF ORIGIN UNDER THE

4 UNITED STATES-CHILE FREE TRADE AGREEMENT.—

5 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

6 it is unlawful for any person to certify falsely, by 

7 fraud, gross negligence, or negligence, in a Chile 

8 FTA Certificate of Origin (as defined in section 

9 508(f)(1)(B) of this Act that a good exported from 

10 the United States qualifies as an originating good 

11 under the rules of origin set out in section 202 of 

12 the United States-Chile Free Trade Agreement Im13 plementation Act. The procedures and penalties of 

14 this section that apply to a violation of subsection 

15 (a) also apply to a violation of this subsection. 

16 ‘‘(2) IMMEDIATE AND VOLUNTARY DISCLOSURE

17 OFINCORRECT INFORMATION.—No penalty shall be 

18 imposed under this subsection if, immediately after 

19 an exporter or producer that issued a Chile FTA 

20 Certificate of Origin has reason to believe that such 

21 certificate contains or is based on incorrect informa22 tion, the exporter or producer voluntarily provides 

23 written notice of such incorrect information to every 

24 person to whom the certificate was issued. 
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1 ‘‘(3) EXCEPTION.—A person may not be consid2 ered to have violated paragraph (1) if—

3 ‘‘(A) the information was correct at the 

4 time it was provided in a Chile FTA Certificate 

5 of Origin but was later rendered incorrect due 

6 to a change in circumstances; and 

7 ‘‘(B) the person immediately and volun8 tarily provides written notice of the change in 

9 circumstances to all persons to whom the per10 son provided the certificate.’’. 

11 (b) DENIAL OF PREFERENTIAL TARIFF TREAT12 MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C. 

13 1514) is amended by adding at the end the following new 

14 subsection: 

15 ‘‘(g) DENIAL OF PREFERENTIAL TARIFF TREAT16 MENT UNDER UNITED STATES-CHILE FREE TRADE

17 AGREEMENT.—If the Bureau of Customs and Border Pro18 tection or the Bureau of Immigration and Customs En19 forcement finds indications of a pattern of conduct by an 

20 importer of false or unsupported representations that 

21 goods qualify under the rules of origin set out in section 

22 202 of the United States-Chile Free Trade Agreement Im23 plementation Act, the Bureau of Customs and Border Pro24 tection, in accordance with regulations issued by the Sec25 retary of the Treasury, may deny preferential tariff treat-
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1 ment under the United States-Chile Free Trade Agree2 ment to entries of identical goods imported by that person 

3 until the person establishes to the satisfaction of the Bu4 reau of Customs and Border Protection that representa5 tions of that person are in conformity with such section 

6 202.’’. 

7 SEC. 206. RELIQUIDATION OF ENTRIES. 

8 Subsection (d) of section 520 of the Tariff Act of 

9 1930 (19 U.S.C. 1520(d)) is amended—

10 (1) by striking ‘‘(d)’’ and inserting the fol11 lowing: 

12 ‘‘(d) GOODS QUALIFYING UNDER FREE TRADE

13 AGREEMENT RULES OF ORIGIN.—’’; 

14 (2) in the matter preceding paragraph (1), by 

15 inserting ‘‘or section 202 of the United States-Chile 

16 Free Trade Agreement Implementation Act’’ after 

17 ‘‘Act’’; 

18 (3) in paragraph (1), by striking ‘‘those’’ and 

19 inserting ‘‘the applicable’’; and

20 (4) in paragraph (2), by inserting before the 

21 semicolon ‘‘, or other certificates of origin, as the 

22 case may be’’. 

23 SEC. 207. RECORDKEEPING REQUIREMENTS. 

24 Section 508 of the Tariff Act of 1930 (19 U.S.C. 

25 1508) is amended—
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1 (1) by striking the heading of subsection (b) 

2 and inserting the following: ‘‘EXPORTATIONS TO

3 NAFTA COUNTRIES.—’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(f) CERTIFICATES OF ORIGIN FOR GOODS EX6 PORTED UNDER THE UNITED STATES-CHILE FREE

7 TRADE AGREEMENT.—

8 ‘‘(1) DEFINITIONS.—In this subsection:

9 ‘‘(A) RECORDS AND SUPPORTING DOCU10 MENTS.—The term ‘records and supporting 

11 documents’ means, with respect to an exported 

12 good under paragraph (2), records and docu13 ments related to the origin of the good, includ14 ing—

15 ‘‘(i) the purchase, cost, and value of, 

16 and payment for, the good; 

17 ‘‘(ii) if applicable, the purchase, cost, 

18 and value of, and payment for, all mate19 rials, including recovered goods, used in 

20 the production of the good; and 

21 ‘‘(iii) if applicable, the production of 

22 the good in the form in which it was ex23 ported. 

24 ‘‘(B) CHILE FTA CERTIFICATE OF ORI25 GIN.—The term ‘Chile FTA Certificate of Ori-
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1 gin’ means the certification, established under 

2 article 4.13 of the United States-Chile Free 

3 Trade Agreement, that a good qualifies as an 

4 originating good under such Agreement. 

5 ‘‘(2) EXPORTS TO CHILE.—Any person who 

6 completes and issues a Chile FTA Certificate of Ori7 gin for a good exported from the United States shall 

8 make, keep, and, pursuant to rules and regulations 

9 promulgated by the Secretary of the Treasury, 

10 render for examination and inspection all records 

11 and supporting documents related to the origin of 

12 the good (including the Certificate or copies thereof).

13 ‘‘(3) RETENTION PERIOD.—Records and sup14 porting documents shall be kept by the person who 

15 issued a Chile FTA Certificate of Origin for at least 

16 5 years after the date on which the certificate was 

17 issued. 

18 ‘‘(g) PENALTIES.—Any person who fails to retain 

19 records and supporting documents required by subsection 

20 (f) or the regulations issued to implement that subsection 

21 shall be liable for the greater of—

22 ‘‘(1) a civil penalty not to exceed $10,000; or 

23 ‘‘(2) the general record keeping penalty that ap24 plies under the customs laws of the United States.’’. 
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1 SEC. 208. ENFORCEMENT OF TEXTILE AND APPAREL RULES 

2 OF ORIGIN. 

3 (a) ACTION DURING VERIFICATION.—If the Sec4 retary of the Treasury requests the Government of Chile 

5 to conduct a verification pursuant to article 3.21 of the 

6 Agreement for purposes of determining that—

7 (1) an exporter or producer in Chile is com8 plying with applicable customs laws, regulations, and 

9 procedures regarding trade in textile and apparel 

10 goods, or 

11 (2) claims that textile or apparel goods exported 

12 or produced by such exporter or producer—

13 (A) qualify as originating goods under sec14 tion 202 of this Act, or 

15 (B) are goods of Chile, 

16 are accurate, 

17 the President may direct the Secretary to take appropriate 

18 action described in subsection (b) while the verification is 

19 being conducted. 

20 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

21 action under subsection (a) includes—

22 (1) suspension of liquidation of entries of textile 

23 and apparel goods exported or produced by the per24 son that is the subject of the verification, in a case 

25 in which the request for verification was based on a 
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1 reasonable suspicion of unlawful activity related to 

2 such goods; and 

3 (2) publication of the name of the person that 

4 is the subject of the verification. 

5 (c) ACTION WHEN INFORMATION IS INSUFFI6 CIENT.—If the Secretary of the Treasury determines that 

7 the information obtained within 12 months after making 

8 a request for a verification under subsection (a) is insuffi9 cient to make a determination under subsection (a), the 

10 President may direct the Secretary to take appropriate ac11 tion described in subsection (d) until such time as the Sec12 retary receives information sufficient to make a deter13 mination under subsection (a) or until such earlier date 

14 as the President may direct. 

15 (d) APPROPRIATE ACTION DESCRIBED.—Appro16 priate action under subsection (c) includes—

17 (1) publication of the identity of the person 

18 that is the subject of the verification; 

19 (2) denial of preferential tariff treatment under 

20 the Agreement to any textile or apparel goods ex21 ported or produced by the person that is the subject 

22 of the verification; and 

23 (3) denial of entry into the United States of 

24 any textile or apparel goods exported or produced by 

25 the person that is the subject of the verification. 
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1 SEC. 209. CONFORMING AMENDMENTS. 

2 Section 508(b)(2)(B)(i)(I) of the Tariff Act of 1930 

3 (19 U.S.C. 1508(b)(2)(B)(i)(I)) is amended—

4 (1) by striking ‘‘the last paragraph of section 

5 311’’ and inserting ‘‘the eleventh paragraph of sec6 tion 311’’; and 

7 (2) by striking ‘‘the last proviso to section 

8 3(a)’’ and inserting ‘‘the proviso preceding the last 

9 proviso to section 3(a)’’.

10 SEC. 210. REGULATIONS. 

11 The Secretary of the Treasury shall prescribe such 

12 regulations as may be necessary to carry out—

13 (1) subsections (a) through (n) of section 202, 

14 and sections 203 and 204; 

15 (2) amendments made by the sections referred 

16 to in paragraph (1); and

17 (3) proclamations issued under section 202(o). 

18 TITLE III—RELIEF FROM 

19 IMPORTS 

20 SEC. 301. DEFINITIONS. 

21 In this title: 

22 (1) COMMISSION.—The term ‘‘Commission’’ 

23 means the United States International Trade Com24 mission. 
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1 (2) CHILEAN ARTICLE.—The term ‘‘Chilean ar2 ticle’’ means an article that qualifies as an origi3 nating good under section 202(a) of this Act. 

4 (3) CHILEAN TEXTILE OR APPAREL ARTICLE.—

5 The term ‘‘Chilean textile or apparel article’’ means 

6 an article—

7 (A) that is listed in the Annex to the 

8 Agreement on Textiles and Clothing referred to 

9 in section 101(d)(4) of the Uruguay Round 

10 Agreements Act (19 U.S.C. 3511(d)(4)); and 

11 (B) that is a Chilean article. 

12 Subtitle A—Relief From Imports 

13 Benefiting From the Agreement 

14 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

15 (a) FILING OF PETITION.—A petition requesting ac16 tion under this subtitle for the purpose of adjusting to 

17 the obligations of the United States under the Agreement 

18 may be filed with the Commission by an entity, including 

19 a trade association, firm, certified or recognized union, or 

20 group of workers, that is representative of an industry. 

21 The Commission shall transmit a copy of any petition filed 

22 under this subsection to the United States Trade Rep23 resentative. 

24 (b) INVESTIGATION AND DETERMINATION.—Upon 

25 the filing of a petition under subsection (a), the Commis-
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1 sion, unless subsection (d) applies, shall promptly initiate 

2 an investigation to determine whether, as a result of the 

3 reduction or elimination of a duty provided for under the 

4 Agreement, a Chilean article is being imported into the 

5 United States in such increased quantities, in absolute 

6 terms or relative to domestic production, and under such 

7 conditions that imports of the Chilean article constitute 

8 a substantial cause of serious injury or threat thereof to 

9 the domestic industry producing an article that is like, or 

10 directly competitive with, the imported article. 

11 (c) APPLICABLE PROVISIONS.—The following provi12 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

13 2252) apply with respect to any investigation initiated 

14 under subsection (b): 

15 (1) Paragraphs (1)(B) and (3) of subsection 

16 (b). 

17 (2) Subsection (c). 

18 (3) Subsection (i). 

19 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

20 investigation may be initiated under this section with re21 spect to any Chilean article if, after the date that the 

22 Agreement enters into force, import relief has been pro23 vided with respect to that Chilean article under this sub24 title, or if, at the time the petition is filed, the article is 
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1 subject to import relief under chapter 1 of title II of the 

2 Trade Act of 1974. 

3 SEC. 312. COMMISSION ACTION ON PETITION. 

4 (a) DETERMINATION.—Not later than 120 days after 

5 the date on which an investigation is initiated under sec6 tion 311(b) with respect to a petition, the Commission 

7 shall make the determination required under that section. 

8 (b) APPLICABLE PROVISIONS.—For purposes of this 

9 subtitle, the provisions of paragraphs (1), (2), and (3) of 

10 section 330(d) of the Tariff Act of 1930 (19 U.S.C. 

11 1330(d) (1), (2), and (3)) shall be applied with respect 

12 to determinations and findings made under this section 

13 as if such determinations and findings were made under 

14 section 202 of the Trade Act of 1974 (19 U.S.C. 2252). 

15 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

16 DETERMINATION AFFIRMATIVE.—If the determination 

17 made by the Commission under subsection (a) with respect 

18 to imports of an article is affirmative, or if the President 

19 may consider a determination of the Commission to be an 

20 affirmative determination as provided for under paragraph 

21 (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 

22 1330(d)), the Commission shall find, and recommend to 

23 the President in the report required under subsection (d), 

24 the amount of import relief that is necessary to remedy 

25 or prevent the injury found by the Commission in the de-
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1 termination and to facilitate the efforts of the domestic 

2 industry to make a positive adjustment to import competi3 tion. The import relief recommended by the Commission 

4 under this subsection shall be limited to the relief de5 scribed in section 313(c). Only those members of the Com6 mission who voted in the affirmative under subsection (a) 

7 are eligible to vote on the proposed action to remedy or 

8 prevent the injury found by the Commission. Members of 

9 the Commission who did not vote in the affirmative may 

10 submit, in the report required under subsection (d), sepa11 rate views regarding what action, if any, should be taken 

12 to remedy or prevent the injury.

13 (d) REPORT TO PRESIDENT.—Not later than the 

14 date that is 30 days after the date on which a determina15 tion is made under subsection (a) with respect to an inves16 tigation, the Commission shall submit to the President a 

17 report that includes—

18 (1) the determination made under subsection 

19 (a) and an explanation of the basis for the deter20 mination; 

21 (2) if the determination under subsection (a) is 

22 affirmative, any findings and recommendations for 

23 import relief made under subsection (c) and an ex24 planation of the basis for each recommendation; and 
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1 (3) any dissenting or separate views by mem2 bers of the Commission regarding the determination 

3 and recommendation referred to in paragraphs (1) 

4 and (2). 

5 (e) PUBLIC NOTICE.—Upon submitting a report to 

6 the President under subsection (d), the Commission shall 

7 promptly make public such report (with the exception of 

8 information which the Commission determines to be con9 fidential) and shall cause a summary thereof to be pub10 lished in the Federal Register. 

11 SEC. 313. PROVISION OF RELIEF. 

12 (a) IN GENERAL.—Not later than the date that is 

13 30 days after the date on which the President receives the 

14 report of the Commission in which the Commission’s de15 termination under section 312(a) is affirmative, or which 

16 contains a determination under section 312(a) that the 

17 President considers to be affirmative under paragraph (1) 

18 of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 

19 1330(d)(1), the President, subject to subsection (b), shall 

20 provide relief from imports of the article that is the subject 

21 of such determination to the extent that the President de22 termines necessary to remedy or prevent the injury found 

23 by the Commission and to facilitate the efforts of the do24 mestic industry to make a positive adjustment to import 

25 competition. 
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1 (b) EXCEPTION.—The President is not required to 

2 provide import relief under this section if the President 

3 determines that the provision of the import relief will not 

4 provide greater economic and social benefits than costs. 

5 (c) NATURE OF RELIEF.—

6 (1) IN GENERAL.—The import relief that the 

7 President is authorized to provide under this section 

8 with respect to imports of an article is as follows:

9 (A) The suspension of any further reduc10 tion provided for under Annex 3.3 of the Agree11 ment in the duty imposed on such article. 

12 (B) An increase in the rate of duty im13 posed on such article to a level that does not 

14 exceed the lesser of—

15 (i) the column 1 general rate of duty 

16 imposed under the HTS on like articles at 

17 the time the import relief is provided; or 

18 (ii) the column 1 general rate of duty 

19 imposed under the HTS on like articles on 

20 the day before the date on which the 

21 Agreement enters into force. 

22 (2) PROGRESSIVE LIBERALIZATION.—If the pe23 riod for which import relief is provided under this 

24 section is greater than 1 year, the President shall 

25 provide for the progressive liberalization (described 
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1 in article 8.2(2) of the Agreement) of such relief at 

2 regular intervals during the period of its application. 

3 (d) PERIOD OF RELIEF.—

4 (1) IN GENERAL.—Subject to paragraph (2), 

5 the import relief that the President is authorized to 

6 provide under this section, including any extensions 

7 thereof, may not, in the aggregate, exceed 3 years. 

8 (2) EXTENSION.—

9 (A) IN GENERAL.—If the initial period for 

10 any import relief provided under this section is 

11 less than 3 years, the President, after receiving 

12 an affirmative determination from the Commis13 sion under subparagraph (B), may extend the 

14 effective period of any import relief provided 

15 under this section, subject to the limitation 

16 under paragraph (1), if the President deter17 mines that—

18 (i) the import relief continues to be 

19 necessary to remedy or prevent serious in20 jury and to facilitate adjustment; and 

21 (ii) there is evidence that the industry 

22 is making a positive adjustment to import 

23 competition. 

24 (B) ACTION BY COMMISSION.—(i) Upon a 

25 petition on behalf of the industry concerned, 
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1 filed with the Commission not earlier than the 

2 date which is 9 months, and not later than the 

3 date which is 6 months, before the date on 

4 which any action taken under subsection (a) is 

5 to terminate, the Commission shall conduct an 

6 investigation to determine whether action under 

7 this section continues to be necessary to remedy 

8 or prevent serious injury and whether there is 

9 evidence that the industry is making a positive 

10 adjustment to import competition. 

11 (ii) The Commission shall publish notice of 

12 the commencement of any proceeding under 

13 this subparagraph in the Federal Register and 

14 shall, within a reasonable time thereafter, hold 

15 a public hearing at which the Commission shall 

16 afford interested parties and consumers an op17 portunity to be present, to present evidence, 

18 and to respond to the presentations of other 

19 parties and consumers, and otherwise to be 

20 heard. 

21 (iii) The Commission shall transmit to the 

22 President a report on its investigation and de23 termination under this subparagraph not later 

24 than 60 days before the action under subsection 
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1 (a) is to terminate, unless the President speci2 fies a different date. 

3 (e) RATE AFTER TERMINATION OF IMPORT RE4 LIEF.—When import relief under this section is termi5 nated with respect to an article—

6 (1) the rate of duty on that article after such 

7 termination and on or before December 31 of the 

8 year in which such termination occurs shall be the 

9 rate that, according to the Schedule of the United 

10 States in Annex 3.3 of the Agreement for the staged 

11 elimination of the tariff, would have been in effect 

12 1 year after the provision of relief under subsection 

13 (a); and 

14 (2) the rate of duty for that article after De15 cember 31 of the year in which termination occurs 

16 shall be, at the discretion of the President, either—

17 (A) the applicable rate of duty for that ar18 ticle set out in the Schedule of the United 

19 States in Annex 3.3 of the Agreement; or 

20 (B) the rate of duty resulting from the 

21 elimination of the tariff in equal annual stages 

22 ending on the date set out in the United States 

23 Schedule in Annex 3.3 of the Agreement for the 

24 elimination of the tariff. 
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1 (f) ARTICLES EXEMPT FROM RELIEF.—No import 

2 relief may be provided under this section on any article 

3 subject to import relief under chapter 1 of title II of the 

4 Trade Act of 1974.

5 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

6 (a) GENERAL RULE.—No import relief may be pro7 vided under this subtitle after the date that is 10 years 

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

9 (b) EXCEPTION.—If an article for which relief is pro10 vided under this subtitle is an article for which the period 

11 for tariff elimination, set out in the Schedule of the United 

12 States to Annex 3.3 of the Agreement, is 12 years, no 

13 relief under this subtitle may be provided for that article 

14 after the date that is 12 years after the date on which 

15 the Agreement enters into force.

16 SEC. 315. COMPENSATION AUTHORITY. 

17 For purposes of section 123 of the Trade Act of 1974 

18 (19 U.S.C. 2133), any import relief provided by the Presi19 dent under section 313 shall be treated as action taken 

20 under chapter 1 of title II of such Act. 

21 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

22 Section 202 (a)(8) of the Trade Act of 1974 (19 

23 U.S.C. 2252(a)(8)) is amended in the first sentence—

24 (1) by striking ‘‘and’’; and 
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1 (2) by inserting before the period at the end ‘‘, 

2 and title III of the United States-Chile Free Trade 

3 Agreement Implementation Act’’. 

4 Subtitle B—Textile and Apparel 

5 Safeguard Measures 

6 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 

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

8 the purpose of adjusting to the obligations of the United 

9 States under the Agreement may be filed with the Presi10 dent by an interested party. Upon the filing of a request, 

11 the President shall review the request to determine, from

12 information presented in the request, whether to com13 mence consideration of the request. 

14 (b) PUBLICATION OF REQUEST.—If the President de15 termines that the request under subsection (a) provides 

16 the information necessary for the request to be considered, 

17 the President shall cause to be published in the Federal 

18 Register a notice of commencement of consideration of the 

19 request, and notice seeking public comments regarding the 

20 request. The notice shall include the request and the dates 

21 by which comments and rebuttals must be received. 

22 SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 

23 (a) DETERMINATION.—

24 (1) IN GENERAL.—If a positive determination is 

25 made under section 321(b), the President shall de-
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1 termine whether, as a result of the elimination of a 

2 duty under the Agreement, a Chilean textile or ap3 parel article is being imported into the United States 

4 in such increased quantities, in absolute terms or 

5 relative to the domestic market for that article, and 

6 under such conditions as to cause serious damage, 

7 or actual threat thereof, to a domestic industry pro8 ducing an article that is like, or directly competitive 

9 with, the imported article. 

10 (2) SERIOUS DAMAGE.—In making a deter11 mination under paragraph (1), the President—

12 (A) shall examine the effect of increased 

13 imports on the domestic industry, as reflected 

14 in changes in such relevant economic factors as 

15 output, productivity, utilization of capacity, in16 ventories, market share, exports, wages, em17 ployment, domestic prices, profits, and invest18 ment, none of which is necessarily decisive; and 

19 (B) shall not consider changes in tech20 nology or consumer preference as factors sup21 porting a determination of serious damage or 

22 actual threat thereof. 

23 (b) PROVISION OF RELIEF.—

24 (1) IN GENERAL.—If a determination under 

25 subsection (a) is affirmative, the President may pro-
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1 vide relief from imports of the article that is the 

2 subject of such determination, as provided in para3 graph (2), to the extent that the President deter4 mines necessary to remedy or prevent the serious 

5 damage and to facilitate adjustment by the domestic 

6 industry. 

7 (2) NATURE OFRELIEF.—The relief that the 

8 President is authorized to provide under this sub9 section with respect to imports of an article is an in10 crease in the rate of duty imposed on the article to 

11 a level that does not exceed the lesser of—

12 (A) the column 1 general rate of duty im13 posed under the HTS on like articles at the 

14 time the import relief is provided; or 

15 (B) the column 1 general rate of duty im16 posed under the HTS on like articles on the 

17 day before the date on which the Agreement en18 ters into force. 

19 SEC. 323. PERIOD OF RELIEF. 

20 (a) IN GENERAL.—The import relief that the Presi21 dent is authorized to provide under section 322, including 

22 any extensions thereof, may not, in the aggregate, exceed 

23 3 years. 

24 (b) EXTENSION.—If the initial period for any import 

25 relief provided under this section is less than 3 years, the 
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1 President may extend the effective period of any import 

2 relief provided under this section, subject to the limitation 

3 set forth in subsection (a), if the President determines 

4 that—

5 (1) the import relief continues to be necessary 

6 to remedy or prevent serious damage and to facili7 tate adjustment; and 

8 (2) there is evidence that the industry is mak9 ing a positive adjustment to import competition. 

10 SEC. 324. ARTICLES EXEMPT FROM RELIEF. 

11 The President may not provide import relief under 

12 this subtitle with respect to any article if import relief pre13 viously has been provided under this subtitle with respect 

14 to that article. 

15 SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF. 

16 When import relief under this subtitle is terminated 

17 with respect to an article, the rate of duty on that article 

18 shall be duty-free. 

19 SEC. 326. TERMINATION OF RELIEF AUTHORITY. 

20 No import relief may be provided under this subtitle 

21 with respect to any article after the date that is 8 years 

22 after the date on which duties on the article are eliminated 

23 pursuant to the Agreement. 
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1 SEC. 327. COMPENSATION AUTHORITY. 

2 For purposes of section 123 of the Trade Act of 1974 

3 (19 U.S.C. 2133), any import relief provided by the Presi4 dent under this subtitle shall be treated as action taken 

5 under chapter 1 of title II of that Act. 

6 SEC. 328. BUSINESS CONFIDENTIAL INFORMATION. 

7 The President may not release information which the 

8 President considers to be confidential business informa9 tion unless the party submitting the confidential business 

10 information had notice, at the time of submission, that 

11 such information would be released by the President, or 

12 such party subsequently consents to the release of the in13 formation. To the extent business confidential information 

14 is provided, a nonconfidential version of the information 

15 shall also be provided, in which the business confidential 

16 information is summarized or, if necessary, deleted.

17 TITLE IV—TEMPORARY ENTRY 

18 OF BUSINESS PERSONS. 

19 SEC. 401. NONIMMIGRANT TRADERS AND INVESTORS. 

20 Upon a basis of reciprocity secured by the Agree21 ment, an alien who is a national of Chile (and any spouse 

22 or child (as defined in section 101(b)(1) of the Immigra23 tion and Nationality Act (8 U.S.C. 1101(b)(1)) of such 

24 alien, if accompanying or following to join the alien) may, 

25 if otherwise eligible for a visa and if otherwise admissible 

26 into the United States under the Immigration and Nation-
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1 ality Act (8 U.S.C. 1101 et seq.), be considered to be clas2 sifiable as a nonimmigrant under section 101(a)(15)(E) 

3 of such Act (8 U.S.C. 1101(a)(15)(E)) if entering solely 

4 for a purpose specified in clause (i) or (ii) of such section 

5 101(a)(15)(E). For purposes of this section, the term ‘‘na6 tional’’ has the meaning given such term in article 14.9 

7 of the Agreement. 

8 SEC. 402. NONIMMIGRANT PROFESSIONALS; LABOR ATTES9 TATIONS. 

10 (a) NONIMMIGRANT PROFESSIONALS.—

11 (1) DEFINITIONS.—Section 101(a)(15)(H)(i)(b) 

12 of the Immigration and Nationality Act (8 U.S.C. 

13 1101(a)(15)(H)(i)(b)) is amended by striking 

14 ‘‘212(n)(1), or (c)’’ and inserting ‘‘212(n)(1), or 

15 (b1) who is entitled to enter the United States under 

16 and in pursuance of the provisions of an agreement 

17 listed in section 214(g)(8)(A), who is engaged in a 

18 specialty occupation described in section 214(i)(3), 

19 and with respect to whom the Secretary of Labor de20 termines and certifies to the Secretary of Homeland 

21 Security and the Secretary of State that the intend22 ing employer has filed with the Secretary of Labor 

23 an attestation under section 212(t)(1), or (c)’’. 
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1 (2) ADMISSION OFNONIMMIGRANTS.—Section 

2 214 of the Immigration and Nationality Act (8 

3 U.S.C. 1184) is amended—

4 (A) in subsection (i)—

5 (i) in paragraph (1), by striking ‘‘For 

6 purposes’’ and inserting ‘‘Except as pro7 vided in paragraph (3), for purposes’’; and 

8 (ii) by adding at the end the fol9 lowing: 

10 ‘‘(3) For purposes of section 101(a)(15)(H)(i)(b1), 

11 the term ‘specialty occupation’ means an occupation that 

12 requires—

13 ‘‘(A) theoretical and practical application of a 

14 body of specialized knowledge; and 

15 ‘‘(B) attainment of a bachelor’s or higher de16 gree in the specific specialty (or its equivalent) as a 

17 minimum for entry into the occupation in the United 

18 States.’’; and 

19 (B) in subsection (g), by adding at the end 

20 the following: 

21 ‘‘(8)(A) The agreement referred to in section 

22 101(a)(15)(H)(i)(b1) is the United States-Chile Free 

23 Trade Agreement.

24 ‘‘(B)(i) The Secretary of Homeland Security shall es25 tablish annual numerical limitations on approvals of initial 
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1 applications by aliens for admission under section 

2 101(a)(15)(H)(i)(b1). 

3 ‘‘(ii) The annual numerical limitations described in 

4 clause (i) shall not exceed 1,400 for nationals of Chile for 

5 any fiscal year. For purposes of this clause, the term ‘na6 tional’ has the meaning given such term in article 14.9 

7 of the United States-Chile Free Trade Agreement. 

8 ‘‘(iii) The annual numerical limitations described in 

9 clause (i) shall only apply to principal aliens and not to 

10 the spouses or children of such aliens. 

11 ‘‘(iv) The annual numerical limitation described in 

12 paragraph (1)(A) is reduced by the amount of the annual 

13 numerical limitations established under clause (i). How14 ever, if a numerical limitation established under clause (i) 

15 has not been exhausted at the end of a given fiscal year, 

16 the Secretary of Homeland Security shall adjust upwards 

17 the numerical limitation in paragraph (1)(A) for that fis18 cal year by the amount remaining in the numerical limita19 tion under clause (i). Visas under section 

20 101(a)(15)(H)(i)(b) may be issued pursuant to such ad21 justment within the first 45 days of the next fiscal year 

22 to aliens who had applied for such visas during the fiscal 

23 year for which the adjustment was made. 

24 ‘‘(C) The period of authorized admission as a non25 immigrant under section 101(a)(15)(H)(i)(b1) shall be 1 
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1 year, and may be extended, but only in 1-year increments. 

2 After every second extension, the next following extension 

3 shall not be granted unless the Secretary of Labor had 

4 determined and certified to the Secretary of Homeland Se5 curity and the Secretary of State that the intending em6 ployer has filed with the Secretary of Labor an attestation 

7 under section 212(t)(1) for the purpose of permitting the 

8 nonimmigrant to obtain such extension. 

9 ‘‘(D) The numerical limitation described in para10 graph (1)(A) for a fiscal year shall be reduced by one for 

11 each alien granted an extension under subparagraph (C) 

12 during such year who has obtained 5 or more consecutive 

13 prior extensions.’’. 

14 (b) LABOR ATTESTATIONS.—Section 212 of the Im15 migration and Nationality Act (8 U.S.C. 1182) is amend16 ed—

17 (1) by redesignating the subsection (p) added 

18 by section 1505(f) of Public Law 106–386 (114 

19 Stat. 1526) as subsection (s); and 

20 (2) by adding at the end the following: 

21 ‘‘(t)(1) No alien may be admitted or provided status 

22 as a nonimmigrant under section 101(a)(15)(H)(i)(b1) in 

23 an occupational classification unless the employer has filed 

24 with the Secretary of Labor an attestation stating the fol25 lowing: 
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1 ‘‘(A) The employer—

2 ‘‘(i) is offering and will offer during the 

3 period of authorized employment to aliens ad4 mitted or provided status under section 

5 101(a)(15)(H)(i)(b1) wages that are at least—

6 ‘‘(I) the actual wage level paid by the 

7 employer to all other individuals with simi8 lar experience and qualifications for the 

9 specific employment in question; or 

10 ‘‘(II) the prevailing wage level for the 

11 occupational classification in the area of 

12 employment, 

13 whichever is greater, based on the best informa14 tion available as of the time of filing the attes15 tation; and

16 ‘‘(ii) will provide working conditions for 

17 such a nonimmigrant that will not adversely af18 fect the working conditions of workers similarly 

19 employed. 

20 ‘‘(B) There is not a strike or lockout in the 

21 course of a labor dispute in the occupational classi22 fication at the place of employment. 

23 ‘‘(C) The employer, at the time of filing the at24 testation—
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1 ‘‘(i) has provided notice of the filing under 

2 this paragraph to the bargaining representative 

3 (if any) of the employer’s employees in the oc4 cupational classification and area for which 

5 aliens are sought; or 

6 ‘‘(ii) if there is no such bargaining rep7 resentative, has provided notice of filing in the 

8 occupational classification through such meth9 ods as physical posting in conspicuous locations 

10 at the place of employment or electronic notifi11 cation to employees in the occupational classi12 fication for which nonimmigrants under section 

13 101(a)(15)(H)(i)(b1) are sought. 

14 ‘‘(D) A specification of the number of workers 

15 sought, the occupational classification in which the 

16 workers will be employed, and wage rate and condi17 tions under which they will be employed. 

18 ‘‘(2)(A) The employer shall make available for public 

19 examination, within one working day after the date on 

20 which an attestation under this subsection is filed, at the 

21 employer’s principal place of business or worksite, a copy 

22 of each such attestation (and such accompanying docu23 ments as are necessary). 

24 ‘‘(B)(i) The Secretary of Labor shall compile, on a 

25 current basis, a list (by employer and by occupational clas-
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1 sification) of the attestations filed under this subsection. 

2 Such list shall include, with respect to each attestation, 

3 the wage rate, number of aliens sought, period of intended 

4 employment, and date of need. 

5 ‘‘(ii) The Secretary of Labor shall make such list 

6 available for public examination in Washington, D.C. 

7 ‘‘(C) The Secretary of Labor shall review an attesta8 tion filed under this subsection only for completeness and 

9 obvious inaccuracies. Unless the Secretary of Labor finds 

10 that an attestation is incomplete or obviously inaccurate,

11 the Secretary of Labor shall provide the certification de12 scribed in section 101(a)(15)(H)(i)(b1) within 7 days of 

13 the date of the filing of the attestation. 

14 ‘‘(3)(A) The Secretary of Labor shall establish a 

15 process for the receipt, investigation, and disposition of 

16 complaints respecting the failure of an employer to meet 

17 a condition specified in an attestation submitted under 

18 this subsection or misrepresentation by the employer of 

19 material facts in such an attestation. Complaints may be 

20 filed by any aggrieved person or organization (including 

21 bargaining representatives). No investigation or hearing 

22 shall be conducted on a complaint concerning such a fail23 ure or misrepresentation unless the complaint was filed 

24 not later than 12 months after the date of the failure or 

25 misrepresentation, respectively. The Secretary of Labor 
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1 shall conduct an investigation under this paragraph if 

2 there is reasonable cause to believe that such a failure or 

3 misrepresentation has occurred. 

4 ‘‘(B) Under the process described in subparagraph 

5 (A), the Secretary of Labor shall provide, within 30 days 

6 after the date a complaint is filed, for a determination as 

7 to whether or not a reasonable basis exists to make a find8 ing described in subparagraph (C). If the Secretary of 

9 Labor determines that such a reasonable basis exists, the 

10 Secretary of Labor shall provide for notice of such deter11 mination to the interested parties and an opportunity for 

12 a hearing on the complaint, in accordance with section 556 

13 of title 5, United States Code, within 60 days after the 

14 date of the determination. If such a hearing is requested, 

15 the Secretary of Labor shall make a finding concerning 

16 the matter by not later than 60 days after the date of 

17 the hearing. In the case of similar complaints respecting 

18 the same applicant, the Secretary of Labor may consoli19 date the hearings under this subparagraph on such com20 plaints. 

21 ‘‘(C)(i) If the Secretary of Labor finds, after notice 

22 and opportunity for a hearing, a failure to meet a condi23 tion of paragraph (1)(B), a substantial failure to meet a 

24 condition of paragraph (1)(C) or (1)(D), or a misrepresen25 tation of material fact in an attestation—
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1 ‘‘(I) the Secretary of Labor shall notify the Sec2 retary of State and the Secretary of Homeland Secu3 rity of such finding and may, in addition, impose 

4 such other administrative remedies (including civil 

5 monetary penalties in an amount not to exceed 

6 $1,000 per violation) as the Secretary of Labor de7 termines to be appropriate; and 

8 ‘‘(II) the Secretary of State or the Secretary of 

9 Homeland Security, as appropriate, shall not ap10 prove petitions or applications filed with respect to 

11 that employer under section 204, 214(c), or 

12 101(a)(15)(H)(i)(b1) during a period of at least 1 

13 year for aliens to be employed by the employer. 

14 ‘‘(ii) If the Secretary of Labor finds, after notice and 

15 opportunity for a hearing, a willful failure to meet a condi16 tion of paragraph (1), a willful misrepresentation of mate17 rial fact in an attestation, or a violation of clause (iv)—

18 ‘‘(I) the Secretary of Labor shall notify the Sec19 retary of State and the Secretary of Homeland Secu20 rity of such finding and may, in addition, impose 

21 such other administrative remedies (including civil 

22 monetary penalties in an amount not to exceed 

23 $5,000 per violation) as the Secretary of Labor de24 termines to be appropriate; and 
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1 ‘‘(II) the Secretary of State or the Secretary of 

2 Homeland Security, as appropriate, shall not ap3 prove petitions or applications filed with respect to 

4 that employer under section 204, 214(c), or 

5 101(a)(15)(H)(i)(b1) during a period of at least 2 

6 years for aliens to be employed by the employer. 

7 ‘‘(iii) If the Secretary of Labor finds, after notice and 

8 opportunity for a hearing, a willful failure to meet a condi9 tion of paragraph (1) or a willful misrepresentation of ma10 terial fact in an attestation, in the course of which failure 

11 or misrepresentation the employer displaced a United 

12 States worker employed by the employer within the period 

13 beginning 90 days before and ending 90 days after the 

14 date of filing of any visa petition or application supported 

15 by the attestation—

16 ‘‘(I) the Secretary of Labor shall notify the Sec17 retary of State and the Secretary of Homeland Secu18 rity of such finding and may, in addition, impose 

19 such other administrative remedies (including civil 

20 monetary penalties in an amount not to exceed 

21 $35,000 per violation) as the Secretary of Labor de22 termines to be appropriate; and 

23 ‘‘(II) the Secretary of State or the Secretary of 

24 Homeland Security, as appropriate, shall not ap25 prove petitions or applications filed with respect to 
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1 that employer under section 204, 214(c), or 

2 101(a)(15)(H)(i)(b1) during a period of at least 3 

3 years for aliens to be employed by the employer. 

4 ‘‘(iv) It is a violation of this clause for an employer 

5 who has filed an attestation under this subsection to in6 timidate, threaten, restrain, coerce, blacklist, discharge, or 

7 in any other manner discriminate against an employee 

8 (which term, for purposes of this clause, includes a former 

9 employee and an applicant for employment) because the 

10 employee has disclosed information to the employer, or to 

11 any other person, that the employee reasonably believes

12 evidences a violation of this subsection, or any rule or reg13 ulation pertaining to this subsection, or because the em14 ployee cooperates or seeks to cooperate in an investigation 

15 or other proceeding concerning the employer’s compliance 

16 with the requirements of this subsection or any rule or 

17 regulation pertaining to this subsection. 

18 ‘‘(v) The Secretary of Labor and the Secretary of 

19 Homeland Security shall devise a process under which a 

20 nonimmigrant under section 101(a)(15)(H)(i)(b1) who 

21 files a complaint regarding a violation of clause (iv) and 

22 is otherwise eligible to remain and work in the United 

23 States may be allowed to seek other appropriate employ24 ment in the United States for a period not to exceed the 
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1 maximum period of stay authorized for such non2 immigrant classification. 

3 ‘‘(vi)(I) It is a violation of this clause for an employer 

4 who has filed an attestation under this subsection to re5 quire a nonimmigrant under section 101(a)(15)(H)(i)(b1) 

6 to pay a penalty for ceasing employment with the employer 

7 prior to a date agreed to by the nonimmigrant and the 

8 employer. The Secretary of Labor shall determine whether 

9 a required payment is a penalty (and not liquidated dam10 ages) pursuant to relevant State law. 

11 ‘‘(II) If the Secretary of Labor finds, after notice and 

12 opportunity for a hearing, that an employer has committed 

13 a violation of this clause, the Secretary of Labor may im14 pose a civil monetary penalty of $1,000 for each such vio15 lation and issue an administrative order requiring the re16 turn to the nonimmigrant of any amount paid in violation 

17 of this clause, or, if the nonimmigrant cannot be located, 

18 requiring payment of any such amount to the general fund 

19 of the Treasury. 

20 ‘‘(vii)(I) It is a failure to meet a condition of para21 graph (1)(A) for an employer who has filed an attestation 

22 under this subsection and who places a nonimmigrant 

23 under section 101(a)(15)(H)(i)(b1) designated as a full24 time employee in the attestation, after the nonimmigrant 

25 has entered into employment with the employer, in non-
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1 productive status due to a decision by the employer (based 

2 on factors such as lack of work), or due to the non3 immigrant’s lack of a permit or license, to fail to pay the 

4 nonimmigrant full-time wages in accordance with para5 graph (1)(A) for all such nonproductive time. 

6 ‘‘(II) It is a failure to meet a condition of paragraph 

7 (1)(A) for an employer who has filed an attestation under 

8 this subsection and who places a nonimmigrant under sec9 tion 101(a)(15)(H)(i)(b1) designated as a part-time em10 ployee in the attestation, after the nonimmigrant has en11 tered into employment with the employer, in nonproduc12 tive status under circumstances described in subclause (I), 

13 to fail to pay such a nonimmigrant for such hours as are 

14 designated on the attestation consistent with the rate of 

15 pay identified on the attestation. 

16 ‘‘(III) In the case of a nonimmigrant under section 

17 101(a)(15)(H)(i)(b1) who has not yet entered into employ18 ment with an employer who has had approved an attesta19 tion under this subsection with respect to the non20 immigrant, the provisions of subclauses (I) and (II) shall 

21 apply to the employer beginning 30 days after the date 

22 the nonimmigrant first is admitted into the United States, 

23 or 60 days after the date the nonimmigrant becomes eligi24 ble to work for the employer in the case of a nonimmigrant 

25 who is present in the United States on the date of the 
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1 approval of the attestation filed with the Secretary of 

2 Labor. 

3 ‘‘(IV) This clause does not apply to a failure to pay 

4 wages to a nonimmigrant under section 

5 101(a)(15)(H)(i)(b1) for nonproductive time due to non6 work-related factors, such as the voluntary request of the 

7 nonimmigrant for an absence or circumstances rendering 

8 the nonimmigrant unable to work. 

9 ‘‘(V) This clause shall not be construed as prohibiting 

10 an employer that is a school or other educational institu11 tion from applying to a nonimmigrant under section 

12 101(a)(15)(H)(i)(b1) an established salary practice of the 

13 employer, under which the employer pays to non14 immigrants under section 101(a)(15)(H)(i)(b1) and 

15 United States workers in the same occupational classifica16 tion an annual salary in disbursements over fewer than 

17 12 months, if—

18 ‘‘(aa) the nonimmigrant agrees to the com19 pressed annual salary payments prior to the com20 mencement of the employment; and 

21 ‘‘(bb) the application of the salary practice to 

22 the nonimmigrant does not otherwise cause the non23 immigrant to violate any condition of the non24 immigrant’s authorization under this Act to remain 

25 in the United States. 
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1 ‘‘(VI) This clause shall not be construed as super2 seding clause (viii). 

3 ‘‘(viii) It is a failure to meet a condition of paragraph 

4 (1)(A) for an employer who has filed an attestation under 

5 this subsection to fail to offer to a nonimmigrant under 

6 section 101(a)(15)(H)(i)(b1), during the nonimmigrant’s 

7 period of authorized employment, benefits and eligibility 

8 for benefits (including the opportunity to participate in 

9 health, life, disability, and other insurance plans; the op10 portunity to participate in retirement and savings plans; 

11 and cash bonuses and non-cash compensation, such as 

12 stock options (whether or not based on performance)) on 

13 the same basis, and in accordance with the same criteria, 

14 as the employer offers to United States workers.

15 ‘‘(D) If the Secretary of Labor finds, after notice and 

16 opportunity for a hearing, that an employer has not paid 

17 wages at the wage level specified in the attestation and 

18 required under paragraph (1), the Secretary of Labor 

19 shall order the employer to provide for payment of such 

20 amounts of back pay as may be required to comply with 

21 the requirements of paragraph (1), whether or not a pen22 alty under subparagraph (C) has been imposed. 

23 ‘‘(E) The Secretary of Labor may, on a case-by-case 

24 basis, subject an employer to random investigations for 

25 a period of up to 5 years, beginning on the date on which 
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1 the employer is found by the Secretary of Labor to have 

2 committed a willful failure to meet a condition of para3 graph (1) or to have made a willful misrepresentation of 

4 material fact in an attestation. The authority of the Sec5 retary of Labor under this subparagraph shall not be con6 strued to be subject to, or limited by, the requirements 

7 of subparagraph (A). 

8 ‘‘(F) Nothing in this subsection shall be construed 

9 as superseding or preempting any other enforcement-re10 lated authority under this Act (such as the authorities 

11 under section 274B), or any other Act. 

12 ‘‘(4) For purposes of this subsection:

13 ‘‘(A) The term ‘area of employment’ means the 

14 area within normal commuting distance of the work15 site or physical location where the work of the non16 immigrant under section 101(a)(15)(H)(i)(b1) is or 

17 will be performed. If such worksite or location is 

18 within a Metropolitan Statistical Area, any place 

19 within such area is deemed to be within the area of 

20 employment. 

21 ‘‘(B) In the case of an attestation with respect 

22 to one or more nonimmigrants under section 

23 101(a)(15)(H)(i)(b1) by an employer, the employer 

24 is considered to ‘displace’ a United States worker 

25 from a job if the employer lays off the worker from 
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1 a job that is essentially the equivalent of the job for 

2 which the nonimmigrant or nonimmigrants is or are 

3 sought. A job shall not be considered to be essen4 tially equivalent of another job unless it involves es5 sentially the same responsibilities, was held by a 

6 United States worker with substantially equivalent 

7 qualifications and experience, and is located in the 

8 same area of employment as the other job. 

9 ‘‘(C)(i) The term ‘lays off’, with respect to a 

10 worker—

11 ‘‘(I) means to cause the worker’s loss of 

12 employment, other than through a discharge for 

13 inadequate performance, violation of workplace 

14 rules, cause, voluntary departure, voluntary re15 tirement, or the expiration of a grant or con16 tract; but 

17 ‘‘(II) does not include any situation in 

18 which the worker is offered, as an alternative to 

19 such loss of employment, a similar employment 

20 opportunity with the same employer at equiva21 lent or higher compensation and benefits than 

22 the position from which the employee was dis23 charged, regardless of whether or not the em24 ployee accepts the offer. 
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1 ‘‘(ii) Nothing in this subparagraph is intended 

2 to limit an employee’s rights under a collective bar3 gaining agreement or other employment contract. 

4 ‘‘(D) The term ‘United States worker’ means 

5 an employee who—

6 ‘‘(i) is a citizen or national of the United 

7 States; or 

8 ‘‘(ii) is an alien who is lawfully admitted 

9 for permanent residence, is admitted as a ref10 ugee under section 207 of this title, is granted 

11 asylum under section 208, or is an immigrant 

12 otherwise authorized, by this Act or by the Sec13 retary of Homeland Security, to be employed.’’. 

14 (c) SPECIAL RULE FOR COMPUTATION OF PRE15 VAILING WAGE.—Section 212(p)(1) of the Immigration 

16 and Nationality Act (8 U.S.C. 1182(p)(1)) is amended by 

17 striking ‘‘(n)(1)(A)(i)(II) and (a)(5)(A)’’ and inserting 

18 ‘‘(a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II)’’.

19 (d) FEE.—

20 (1) IN GENERAL.—Section 214(c) of the Immi21 gration and Nationality Act (8 U.S.C. 1184(c)) is 

22 amended by adding at the end the following: 

23 ‘‘(11)(A) Subject to subparagraph (B), the Secretary 

24 of Homeland Security or the Secretary of State, as appro-
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1 priate, shall impose a fee on an employer who has filed 

2 an attestation described in section 212(t)—

3 ‘‘(i) in order that an alien may be initially 

4 granted nonimmigrant status described in section 

5 101(a)(15)(H)(i)(b1); or 

6 ‘‘(ii) in order to satisfy the requirement of the 

7 second sentence of subsection (g)(8)(C) for an alien 

8 having such status to obtain certain extensions of 

9 stay. 

10 ‘‘(B) The amount of the fee shall be the same as the 

11 amount imposed by the Secretary of Homeland Security 

12 under paragraph (9), except that if such paragraph does 

13 not authorize such Secretary to impose any fee, no fee 

14 shall be imposed under this paragraph. 

15 ‘‘(C) Fees collected under this paragraph shall be de16 posited in the Treasury in accordance with section 

17 286(s).’’. 

18 (2) USE OFFEE.—Section 286(s)(1) of the Im19 migration and Nationality Act (8 U.S.C. 1356(s)(1)) 

20 is amended by striking ‘‘section 214(c)(9).’’ and in21 serting ‘‘paragraphs (9) and (11) of section 

22 214(c).’’. 

23 SEC. 403. LABOR DISPUTES. 

24 Section 214(j) of the Immigration and Nationality 

25 Act (8 U.S.C. 1184(j)) is amended—
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1 (1) by striking ‘‘(j)’’ and inserting ‘‘(j)(1)’’; 

2 (2) by striking ‘‘this subsection’’ each place 

3 such term appears and inserting ‘‘this paragraph’’; 

4 and 

5 (3) by adding at the end the following: 

6 ‘‘(2) Notwithstanding any other provision of this Act 

7 except section 212(t)(1), and subject to regulations pro8 mulgated by the Secretary of Homeland Security, an alien 

9 who seeks to enter the United States under and pursuant 

10 to the provisions of an agreement listed in subsection 

11 (g)(8)(A), and the spouse and children of such an alien 

12 if accompanying or following to join the alien, may be de13 nied admission as a nonimmigrant under subparagraph 

14 (E), (L), or (H)(i)(b1) of section 101(a)(15) if there is 

15 in progress a labor dispute in the occupational classifica16 tion at the place or intended place of employment, unless 

17 such alien establishes, pursuant to regulations promul18 gated by the Secretary of Homeland Security after con19 sultation with the Secretary of Labor, that the alien’s 

20 entry will not affect adversely the settlement of the labor 

21 dispute or the employment of any person who is involved 

22 in the labor dispute. Notice of a determination under this 

23 paragraph shall be given as may be required by such 

24 agreement.’’. 
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1 SEC. 404. CONFORMING AMENDMENTS. 

2 Section 214 of the Immigration and Nationality Act 

3 (8 U.S.C. 1184) is amended—

4 (1) in subsection (b), by striking ‘‘(other than 

5 a nonimmigrant described in subparagraph (H)(i), 

6 (L), or (V) of section 101(a)(15))’’ and inserting 

7 ‘‘(other than a nonimmigrant described in subpara8 graph (L) or (V) of section 101(a)(15), and other 

9 than a nonimmigrant described in any provision of 

10 section 101(a)(15)(H)(i) except subclause (b1) of 

11 such section)’’; 

12 (2) in subsection (c)(1), by striking ‘‘section 

13 101(a)(15)(H), (L), (O), or (P)(i)’’ and inserting 

14 ‘‘subparagraph (H), (L), (O), or (P)(i) of section 

15 101(a)(15) (excluding nonimmigrants under section 

16 101(a)(15)(H)(i)(b1))’’; and 

17 (3) in subsection (h), by striking ‘‘(H)(i)’’ and 

18 inserting ‘‘(H)(i)(b) or (c)’’.
Union Calendar No. 125

108TH CONGRESS 

1ST SESSION H. R. 2738

[Report No. 108–224, Parts I and II] 

A BILL

To implement the United States-Chile Free Trade 

Agreement. 

JULY 22, 2003

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed