PUBLIC LAW 112–41—OCT. 21, 2011 

UNITED STATES–KOREA FREE TRADE 

AGREEMENT IMPLEMENTATION ACT 


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125 STAT. 428 PUBLIC LAW 112–41—OCT. 21, 2011 

Public Law 112–41 

112th Congress 

An Act 

To implement the United States–Korea Free Trade Agreement. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘United States– 

Korea Free Trade Agreement Implementation Act’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act 

is as follows: 

Sec. 1. Short title. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE 

AGREEMENT 

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

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

Sec. 103. Implementing actions in anticipation of entry into force and initial regulations. 

Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed 

actions. 

Sec. 105. Administration of dispute settlement proceedings. 

Sec. 106. Arbitration of claims. 

Sec. 107. Effective dates; effect of termination. 

TITLE II—CUSTOMS PROVISIONS 

Sec. 201. Tariff modifications. 

Sec. 202. Rules of origin. 

Sec. 203. Customs user fees. 

Sec. 204. Disclosure of incorrect information; false certifications of origin; denial of 

preferential tariff treatment. 

Sec. 205. Reliquidation of entries. 

Sec. 206. Recordkeeping requirements. 

Sec. 207. Enforcement relating to trade in textile or apparel goods. 

Sec. 208. Regulations. 

TITLE III—RELIEF FROM IMPORTS 

Sec. 301. Definitions. 

Subtitle A—Relief From Imports Benefitting From the Agreement 

Sec. 311. Commencing of action for relief. 

Sec. 312. Commission action on petition. 

Sec. 313. Provision of relief. 

Sec. 314. Termination of relief authority. 

Sec. 315. Compensation authority. 

Sec. 316. Confidential business information. 

Subtitle B—Motor Vehicle Safeguard Measures 

Sec. 321. Motor vehicle safeguard measures. 

Subtitle C—Textile and Apparel Safeguard Measures 

Sec. 331. Commencement of action for relief. 

United States– 

Korea Free Trade 

Agreement 

Implementation 

Act. 

19 USC 3805 

note. 

Oct. 21, 2011 

[H.R. 3080] 


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Sec. 332. Determination and provision of relief. 

Sec. 333. Period of relief. 

Sec. 334. Articles exempt from relief. 

Sec. 335. Rate after termination of import relief. 

Sec. 336. Termination of relief authority. 

Sec. 337. Compensation authority. 

Sec. 338. Confidential business information. 

Subtitle D—Cases Under Title II of the Trade Act of 1974 

Sec. 341. Findings and action on Korean articles. 

TITLE IV—PROCUREMENT 

Sec. 401. Eligible products. 

TITLE V—OFFSETS 

Sec. 501. Increase in penalty on paid preparers who fail to comply with earned income tax credit due diligence requirements. 

Sec. 502. Requirement for prisons located in the United States to provide information for tax administration. 

Sec. 503. Rate for merchandise processing fees. 

Sec. 504. Extension of customs user fees. 

Sec. 505. Time for payment of corporate estimated taxes. 

SEC. 2. PURPOSES. 

The purposes of this Act are— 

(1) to approve and implement the free trade agreement 

between the United States and Korea entered into under the 

authority of section 2103(b) of the Bipartisan Trade Promotion 

Authority Act of 2002 (19 U.S.C. 3803(b)); 

(2) to secure the benefits of the agreement entered into 

pursuant to an exchange of letters between the United States 

and the Government of Korea on February 10, 2011; 

(3) to strengthen and develop economic relations between 

the United States and Korea for their mutual benefit; 

(4) to establish free trade between the United States and 

Korea through the reduction and elimination of barriers to 

trade in goods and services and to investment; and 

(5) to lay the foundation for further cooperation to expand 

and enhance the benefits of the Agreement. 

SEC. 3. DEFINITIONS. 

In this Act: 

(1) AGREEMENT.—The term ‘‘Agreement’’ means the United 

States–Korea Free Trade Agreement approved by Congress 

under section 101(a)(1). 

(2) COMMISSION.—The term ‘‘Commission’’ means the 

United States International Trade Commission. 

(3) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff 

Schedule of the United States. 

(4) KOREA.—The term ‘‘Korea’’ means the Republic of 

Korea. 

(5) TEXTILE OR APPAREL GOOD.—The term ‘‘textile or 

apparel good’’ means a good listed in the Annex to the Agreement on Textiles and Clothing referred to in section 101(d)(4) 

of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)). 


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125 STAT. 430 PUBLIC LAW 112–41—OCT. 21, 2011 

TITLE I—APPROVAL OF, AND GENERAL 

PROVISIONS RELATING TO, THE 

AGREEMENT 

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

(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRATIVE ACTION.—Pursuant to section 2105 of the Bipartisan Trade 

Promotion Authority Act of 2002 (19 U.S.C. 3805) and section 

151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress approves— 

(1) the United States–Korea Free Trade Agreement entered 

into on June 30, 2007, with the Government of Korea, and 

submitted to Congress on October 3, 2011; and 

(2) the statement of administrative action proposed to 

implement the Agreement that was submitted to Congress on 

October 3, 2011. 

(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.— 

At such time as the President determines that Korea has taken 

measures necessary to comply with those provisions of the Agreement that are to take effect on the date on which the Agreement 

enters into force, the President is authorized to exchange notes 

with the Government of Korea providing for the entry into force, 

on or after January 1, 2012, of the Agreement with respect to 

the United States. 

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES 

AND STATE LAW. 

(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.— 

(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provision of the Agreement, nor the application of any such provision 

to any person or circumstance, which is inconsistent with any 

law of the United States shall have effect. 

(2) CONSTRUCTION.—Nothing in this Act shall be construed— 

(A) to amend or modify any law of the United States, 

or 

(B) to limit any authority conferred under any law 

of the United States, 

unless specifically provided for in this Act. 

(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.— 

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

thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application 

is inconsistent with the Agreement, except in an action brought 

by the United States for the purpose of declaring such law 

or application invalid. 

(2) DEFINITION OF STATE LAW.—For purposes of this subsection, the term ‘‘State law’’ includes— 

(A) any law of a political subdivision of a State; and 

(B) any State law regulating or taxing the business 

of insurance. 

(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES.—No person other than the United States— 

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

Agreement or by virtue of congressional approval thereof; or 

President. 


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

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

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

action or inaction is inconsistent with the Agreement. 

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 

FORCE AND INITIAL REGULATIONS. 

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

(A) the President may proclaim such actions, and 

(B) other appropriate officers of the United States 

Government may issue such regulations, 

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

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

date on which the Agreement enters into force is appropriately 

implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date on which 

the Agreement enters into force. 

(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.— Any action proclaimed by the President under the authority 

of this Act that is not subject to the consultation and layover 

provisions under section 104 may not take effect before the 

15th day after the date on which the text of the proclamation 

is published in the Federal Register. 

(3) WAIVER OF 15-DAY RESTRICTION.—The 15-day restriction 

contained in paragraph (2) on the taking effect of proclaimed 

actions is waived to the extent that the application of such 

restriction would prevent the taking effect on the date on 

which the Agreement enters into force of any action proclaimed 

under this section. 

(b) INITIAL REGULATIONS.—Initial regulations necessary or 

appropriate to carry out the actions required by or authorized 

under this Act or proposed in the statement of administrative 

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

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

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

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

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

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

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

If a provision of this Act provides that the implementation 

of an action by the President by proclamation is subject to the 

consultation and layover requirements of this section, such action 

may be proclaimed only if— 

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

(A) the appropriate advisory committees established 

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

2155); and 

(B) the Commission; 

(2) the President has submitted to the Committee on 

Finance of the Senate and the Committee on Ways and Means 

of the House of Representatives a report that sets forth— 

Reports. 

President. 

Deadlines. 


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125 STAT. 432 PUBLIC LAW 112–41—OCT. 21, 2011 

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

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

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

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

and (2) have been met, has expired; and 

(4) the President has consulted with the committees 

referred to in paragraph (2) regarding the proposed action 

during the period referred to in paragraph (3). 

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS. 

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

is authorized to establish or designate within the Department of 

Commerce an office that shall be responsible for providing administrative assistance to panels established under chapter 22 of the 

Agreement. The office shall not be considered to be an agency 

for purposes of section 552 of title 5, United States Code. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated for each fiscal year after fiscal year 2011 to 

the Department of Commerce up to $750,000 for the establishment 

and operations of the office established or designated under subsection (a) and for the payment of the United States share of 

the expenses of panels established under chapter 22 of the Agreement. 

SEC. 106. ARBITRATION OF CLAIMS. 

The United States is authorized to resolve any claim against 

the United States covered by article 11.16.1(a)(i)(C) or article 

11.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 

Dispute Settlement procedures set forth in section B of chapter 

11 of the Agreement. 

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 

(a) EFFECTIVE DATES.—Except as provided in subsection (b), 

this Act and the amendments made by this Act take effect on 

the date on which the Agreement enters into force. 

(b) EXCEPTIONS.— 

(1) IN GENERAL.—Sections 1 through 3, section 207(g), this 

title, and title V take effect on the date of the enactment 

of this Act. 

(2) CERTAIN AMENDATORY PROVISIONS.—The amendments 

made by sections 203, 204, 206, and 401 of this Act take 

effect on the date of the enactment of this Act and apply 

with respect to Korea on the date on which the Agreement 

enters into force. 

(c) TERMINATION OF THE AGREEMENT.—On the date on which 

the Agreement terminates, this Act (other than this subsection 

and title V) and the amendments made by this Act (other than 

the amendments made by title V) shall cease to have effect. 

TITLE II—CUSTOMS PROVISIONS 

SEC. 201. TARIFF MODIFICATIONS. 

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

The President may proclaim— 

(1) such modifications or continuation of any duty, 

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

Applicability. 

President. 

Time period. 


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(3) such additional duties, 

as the President determines to be necessary or appropriate to 

carry out or apply articles 2.3, 2.5, and 2.6, and Annex 2-B, Annex 

4-B, and Annex 22-A, of the Agreement. 

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

and layover provisions of section 104, the President may proclaim— 

(1) such modifications or continuation of any duty, 

(2) such modifications as the United States may agree 

to with Korea regarding the staging of any duty treatment 

set forth in Annex 2-B of the Agreement, 

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

(4) such additional duties, 

as the President determines to be necessary or appropriate to 

maintain the general level of reciprocal and mutually advantageous 

concessions with respect to Korea provided for by the Agreement. 

(c) CONVERSION TO AD VALOREM RATES.—For purposes of subsections (a) and (b), with respect to any good for which the base 

rate in the Schedule of the United States to Annex 2-B of the 

Agreement is a specific or compound rate of duty, the President 

may substitute for the base rate an ad valorem rate that the 

President determines to be equivalent to the base rate. 

(d) TARIFF TREATMENT OF MOTOR VEHICLES.—The President 

may proclaim the following tariff treatment with respect to the 

following motor vehicles of Korea: 

(1) CERTAIN PASSENGER CARS.—In the case of originating 

goods of Korea classifiable under subheading 8703.10.10, 

8703.10.50, 8703.21.00, 8703.22.00, 8703.23.00, 8703.24.00, 

8703.31.00, 8703.32.00, or 8703.33.00 of the HTS that are 

entered, or withdrawn from warehouse for consumption— 

(A) the rate of duty for such goods shall be 2.5 percent 

for year 1 of the Agreement through year 4 of the Agreement; and 

(B) such goods shall be free of duty for each year 

thereafter. 

(2) ELECTRIC MOTOR VEHICLES.—In the case of originating 

goods of Korea classifiable under subheading 8703.90.00 of 

the HTS that are entered, or withdrawn from warehouse for 

consumption— 

(A) the rate of duty for such goods shall be— 

(i) 2.0 percent for year 1 of the Agreement; 

(ii) 1.5 percent for year 2 of the Agreement; 

(iii) 1.0 percent for year 3 of the Agreement; and 

(iv) 0.5 percent for year 4 of the Agreement; and 

(B) such goods shall be free of duty for each year 

thereafter. 

(3) CERTAIN TRUCKS.—In the case of originating goods of 

Korea classifiable under subheading 8704.21.00, 8704.22.50, 

8704.23.00, 8704.31.00, 8704.32.00, or 8704.90.00 of the HTS 

that are entered, or withdrawn from warehouse for consumption— 

(A) the rate of duty for such goods shall be— 

(i) 25 percent for year 1 of the Agreement through 

year 7 of the Agreement; 

(ii) 16.6 percent for year 8 of the Agreement; and 

(iii) 8.3 percent for year 9 of the Agreement; and 

(B) such goods shall be free of duty for each year 

thereafter. 


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125 STAT. 434 PUBLIC LAW 112–41—OCT. 21, 2011 

(4) DEFINITIONS.—In this subsection— 

(A) the term ‘‘year 1 of the Agreement’’ means the 

period beginning on the date, in a calendar year, on which 

the Agreement enters into force and ending on December 

31 of that calendar year; and 

(B) the terms ‘‘year 2 of the Agreement’’, ‘‘year 3 of 

the Agreement’’, ‘‘year 4 of the Agreement’’, ‘‘year 5 of 

the Agreement’’, ‘‘year 6 of the Agreement’’, ‘‘year 7 of 

the Agreement’’, ‘‘year 8 of the Agreement’’, and ‘‘year 

9 of the Agreement’’ mean the second, third, fourth, fifth, 

sixth, seventh, eighth, and ninth calendar years, respectively, in which the Agreement is in force. 

SEC. 202. RULES OF ORIGIN. 

(a) APPLICATION AND INTERPRETATION.—In this section: 

(1) TARIFF CLASSIFICATION.—The basis for any tariff classification is the HTS. 

(2) REFERENCE TO HTS.—Whenever in this section there 

is a reference to a chapter, heading, or subheading, such reference shall be a reference to a chapter, heading, or subheading 

of the HTS. 

(3) COST OR VALUE.—Any cost or value referred to in this 

section shall be recorded and maintained in accordance with 

the generally accepted accounting principles applicable in the 

territory of the country in which the good is produced (whether 

Korea or the United States). 

(b) ORIGINATING GOODS.—For purposes of this Act and for 

purposes of implementing the preferential tariff treatment provided 

for under the Agreement, except as otherwise provided in this 

section, a good is an originating good if— 

(1) the good is a good wholly obtained or produced entirely 

in the territory of Korea, the United States, or both; 

(2) the good— 

(A) is produced entirely in the territory of Korea, the 

United States, or both, and— 

(i) each of the nonoriginating materials used in 

the production of the good undergoes an applicable 

change in tariff classification specified in Annex 4- 

A or Annex 6-A of the Agreement; or 

(ii) the good otherwise satisfies any applicable 

regional value-content or other requirements specified 

in Annex 4-A or Annex 6-A of the Agreement; and 

(B) satisfies all other applicable requirements of this 

section; or 

(3) the good is produced entirely in the territory of Korea, 

the United States, or both, exclusively from materials described 

in paragraph (1) or (2). 

(c) REGIONAL VALUE-CONTENT.— 

(1) IN GENERAL.—For purposes of subsection (b)(2), the 

regional value-content of a good referred to in Annex 6-A of 

the Agreement, except for goods to which paragraph (4) applies, 

shall be calculated by the importer, exporter, or producer of 

the good, on the basis of the build-down method described 

in paragraph (2) or the build-up method described in paragraph 

(3). 

(2) BUILD-DOWN METHOD.— 

Records. 


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PUBLIC LAW 112–41—OCT. 21, 2011 125 STAT. 435 

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

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

AV¥VNM 

RVC = ————— × 100 

AV 

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

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

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

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

of the good. 

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

nonoriginating materials, other than indirect materials, that are acquired and used by the producer in 

the production of the good, but does not include the 

value of a material that is self-produced. 

(3) BUILD-UP METHOD.— 

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

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

VOM 

RVC = ————— × 100 

AV 

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

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

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

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

of the good. 

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

originating materials, other than indirect materials, 

that are acquired or self-produced, and used by the 

producer in the production of the good. 

(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE GOODS.— 

(A) IN GENERAL.—For purposes of subsection (b)(2), 

the regional value-content of an automotive good referred 

to in Annex 6-A of the Agreement may be calculated by 

the importer, exporter, or producer of the good on the 

basis of the build-down method described in paragraph 

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

the following net cost method: 

NC¥VNM 

RVC = ————— × 100 

NC 

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

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

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

8407.31 through 8407.34, subheading 8408.20, heading 

8409, or any of headings 8701 through 8708. 

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

value-content of the automotive good, expressed as a 

percentage. 

(iii) NC.—The term ‘‘NC’’ means the net cost of 

the automotive good. 

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

nonoriginating materials, other than indirect materials, that are acquired and used by the producer in 


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the production of the automotive good, but does not 

include the value of a material that is self-produced. 

(C) MOTOR VEHICLES.— 

(i) BASIS OF CALCULATION.—For purposes of determining the regional value-content under subparagraph 

(A) for an automotive good that is a motor vehicle 

provided for in any of headings 8701 through 8705, 

an importer, exporter, or producer may average the 

amounts calculated under the net cost formula contained in subparagraph (A), over the producer’s fiscal 

year— 

(I) with respect to all motor vehicles in any 

one of the categories described in clause (ii); or 

(II) with respect to all motor vehicles in any 

such category that are exported to the territory 

of Korea or the United States. 

(ii) CATEGORIES.—A category is described in this 

clause if it— 

(I) is the same model line of motor vehicles, 

is in the same class of motor vehicles, and is 

produced in the same plant in the territory of 

Korea or the United States, as the good described 

in clause (i) for which regional value-content is 

being calculated; 

(II) is the same class of motor vehicles, and 

is produced in the same plant in the territory 

of Korea or the United States, as the good 

described in clause (i) for which regional valuecontent is being calculated; or 

(III) is the same model line of motor vehicles 

produced in the territory of Korea or the United 

States as the good described in clause (i) for which 

regional value-content is being calculated. 

(D) OTHER AUTOMOTIVE GOODS.—For purposes of determining the regional value-content under subparagraph (A) 

for automotive materials provided for in any of subheadings 

8407.31 through 8407.34, in subheading 8408.20, or in 

heading 8409, 8706, 8707, or 8708, that are produced in 

the same plant, an importer, exporter, or producer may— 

(i) average the amounts calculated under the net 

cost formula contained in subparagraph (A) over— 

(I) the fiscal year of the motor vehicle producer 

to whom the automotive goods are sold, 

(II) any quarter or month, or 

(III) the fiscal year of the producer of such 

goods, 

if the goods were produced during the fiscal year, 

quarter, or month that is the basis for the calculation; 

(ii) determine the average referred to in clause 

(i) separately for such goods sold to 1 or more motor 

vehicle producers; or 

(iii) make a separate determination under clause 

(i) or (ii) for such goods that are exported to the territory of Korea or the United States. 

(E) CALCULATING NET COST.—The importer, exporter, 

or producer of an automotive good shall, consistent with 

the provisions regarding allocation of costs provided for 


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in generally accepted accounting principles, determine the 

net cost of the automotive good under subparagraph (B) 

by— 

(i) calculating the total cost incurred with respect 

to all goods produced by the producer of the automotive 

good, subtracting any sales promotion, marketing, and 

after-sales service costs, royalties, shipping and 

packing costs, and nonallowable interest costs that are 

included in the total cost of all such goods, and then 

reasonably allocating the resulting net cost of those 

goods to the automotive good; 

(ii) calculating the total cost incurred with respect 

to all goods produced by that producer, reasonably 

allocating the total cost to the automotive good, and 

then subtracting any sales promotion, marketing, and 

after-sales service costs, royalties, shipping and 

packing costs, and nonallowable interest costs that are 

included in the portion of the total cost allocated to 

the automotive good; or 

(iii) reasonably allocating each cost that forms part 

of the total cost incurred with respect to the automotive 

good so that the aggregate of these costs does not 

include any sales promotion, marketing, and after-sales 

service costs, royalties, shipping and packing costs, 

or nonallowable interest costs. 

(d) VALUE OF MATERIALS.— 

(1) IN GENERAL.—For the purpose of calculating the 

regional value-content of a good under subsection (c), and for 

purposes of applying the de minimis rules under subsection 

(f), the value of a material is— 

(A) in the case of a material that is imported by the 

producer of the good, the adjusted value of the material; 

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

in which the good is produced, the value, determined in 

accordance with Articles 1 through 8, Article 15, and the 

corresponding interpretive notes, of the Agreement on 

Implementation of Article VII of the General Agreement 

on Tariffs and Trade 1994 referred to in section 101(d)(8) 

of the Uruguay Round Agreements Act (19 U.S.C. 

3511(d)(8)), as set forth in regulations promulgated by the 

Secretary of the Treasury providing for the application 

of such Articles in the absence of an importation by the 

producer; or 

(C) in the case of a material that is self-produced, 

the sum of— 

(i) all expenses incurred in the production of the 

material, including general expenses; and 

(ii) an amount for profit equivalent to the profit 

added in the normal course of trade. 

(2) FURTHER ADJUSTMENTS TO THE VALUE OF MATERIALS.— 

(A) ORIGINATING MATERIAL.—The following expenses, 

if not included in the value of an originating material 

calculated under paragraph (1), may be added to the value 

of the originating material: 

(i) The costs of freight, insurance, packing, and 

all other costs incurred in transporting the material 


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125 STAT. 438 PUBLIC LAW 112–41—OCT. 21, 2011 

within or between the territory of Korea, the United 

States, or both, to the location of the producer. 

(ii) Duties, taxes, and customs brokerage fees on 

the material paid in the territory of Korea, the United 

States, or both, other than duties or taxes that are 

waived, refunded, refundable, or otherwise recoverable, 

including credit against duty or tax paid or payable. 

(iii) The cost of waste and spoilage resulting from 

the use of the material in the production of the good, 

less the value of renewable scrap or byproducts. 

(B) NONORIGINATING MATERIAL.—The following 

expenses, if included in the value of a nonoriginating material calculated under paragraph (1), may be deducted from 

the value of the nonoriginating material: 

(i) The costs of freight, insurance, packing, and 

all other costs incurred in transporting the material 

within or between the territory of Korea, the United 

States, or both, to the location of the producer. 

(ii) Duties, taxes, and customs brokerage fees on 

the material paid in the territory of Korea, the United 

States, or both, other than duties or taxes that are 

waived, refunded, refundable, or otherwise recoverable, 

including credit against duty or tax paid or payable. 

(iii) The cost of waste and spoilage resulting from 

the use of the material in the production of the good, 

less the value of renewable scrap or byproducts. 

(iv) The cost of originating materials used in the 

production of the nonoriginating material in the territory of Korea, the United States, or both. 

(e) ACCUMULATION.— 

(1) ORIGINATING MATERIALS USED IN PRODUCTION OF GOODS

OF THE OTHER COUNTRY.—Originating materials from the territory of Korea or the United States that are used in the production of a good in the territory of the other country shall be 

considered to originate in the territory of such other country. 

(2) MULTIPLE PRODUCERS.—A good that is produced in the 

territory of Korea, the United States, or both, by 1 or more 

producers, is an originating good if the good satisfies the 

requirements of subsection (b) and all other applicable requirements of this section. 

(f) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.— 

(1) IN GENERAL.—Except as provided in paragraphs (2) 

and (3), a good that does not undergo a change in tariff classification pursuant to Annex 6-A of the Agreement is an originating good if— 

(A) the value of all nonoriginating materials used in 

the production of the good that do not undergo the 

applicable change in tariff classification (set forth in Annex 

6-A of the Agreement) does not exceed 10 percent of the 

adjusted value of the good; 

(B) the good meets all other applicable requirements 

of this section; and 

(C) the value of such nonoriginating materials is 

included in the value of nonoriginating materials for any 

applicable regional value-content requirement for the good. 

(2) EXCEPTIONS.—Paragraph (1) does not apply to the following: 


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(A) A nonoriginating material provided for in chapter 

3 that is used in the production of a good provided for 

in chapter 3. 

(B) A nonoriginating material provided for in chapter 

4, or a nonoriginating dairy preparation containing over 

10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, that is used in the production 

of a good provided for in chapter 4. 

(C) A nonoriginating material provided for in chapter 

4, or a nonoriginating dairy preparation containing over 

10 percent by weight of milk solids provided for in subheading 1901.90, that is used in the production of any 

of the following goods: 

(i) Infant preparations containing over 10 percent 

by weight of milk solids provided for in subheading 

1901.10. 

(ii) Mixes and doughs, containing over 25 percent 

by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20. 

(iii) Dairy preparations containing over 10 percent 

by weight of milk solids provided for in subheading 

1901.90 or 2106.90. 

(iv) Goods provided for in heading 2105. 

(v) Beverages containing milk provided for in subheading 2202.90. 

(vi) Animal feeds containing over 10 percent by 

weight of milk solids provided for in subheading 

2309.90. 

(D) A nonoriginating material provided for in chapter 

7 that is used in the production of a good provided for 

in subheading 0703.10, 0703.20, 0709.59, 0709.60, 0711.90, 

0712.20, 0714.20, or any of subheadings 0710.21 through 

0710.80 or 0712.39 through 0713.10. 

(E) A nonoriginating material provided for in heading 

1006, or a nonoriginating rice product provided for in 

chapter 11 that is used in the production of a good provided 

for in heading 1006, 1102, 1103, 1104, or subheading 

1901.20 or 1901.90. 

(F) A nonoriginating material provided for in heading 

0805, or any of subheadings 2009.11 through 2009.39, that 

is used in the production of a good provided for in any 

of subheadings 2009.11 through 2009.39, or in fruit or 

vegetable juice of any single fruit or vegetable, fortified 

with minerals or vitamins, concentrated or unconcentrated, 

provided for in subheading 2106.90 or 2202.90. 

(G) Nonoriginating peaches, pears, or apricots provided 

for in chapter 8 or 20 that are used in the production 

of a good provided for in heading 2008. 

(H) A nonoriginating material provided for in chapter 

15 that is used in the production of a good provided for 

in any of headings 1501 through 1508, or heading 1512, 

1514, or 1515. 

(I) A nonoriginating material provided for in heading 

1701 that is used in the production of a good provided 

for in any of headings 1701 through 1703. 


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(J) A nonoriginating material provided for in chapter 

17 that is used in the production of a good provided for 

in subheading 1806.10. 

(K) Except as provided in subparagraphs (A) through 

(J) and Annex 6-A of the Agreement, a nonoriginating 

material used in the production of a good provided for 

in any of chapters 1 through 24, unless the nonoriginating 

material is provided for in a different subheading than 

the good for which origin is being determined under this 

section. 

(3) TEXTILE OR APPAREL GOODS.— (A) IN GENERAL.—Except as provided in subparagraph 

(B), a textile or apparel good that is not an originating 

good because certain fibers or yarns used in the production 

of the component of the good that determines the tariff 

classification of the good do not undergo an applicable 

change in tariff classification, set forth in Annex 4-A of 

the Agreement, shall be considered to be an originating 

good if the total weight of all such fibers or yarns in 

that component is not more than 7 percent of the total 

weight of that component. 

(B) CERTAIN TEXTILE OR APPAREL GOODS.—A textile 

or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification 

of the good shall be considered to be an originating good 

only if such yarns are wholly formed and finished in the 

territory of Korea, the United States, or both. 

(C) YARN, FABRIC, OR FIBER.—For purposes of this paragraph, in the case of a good that is a yarn, fabric, or 

fiber, the term ‘‘component of the good that determines 

the tariff classification of the good’’ means all of the fibers 

in the good. 

(g) FUNGIBLE GOODS AND MATERIALS.— 

(1) IN GENERAL.— 

(A) CLAIM FOR PREFERENTIAL TARIFF TREATMENT.—A 

person claiming that a fungible good or fungible material 

is an originating good may base the claim either on the 

physical segregation of the fungible good or fungible material or by using an inventory management method with 

respect to the fungible good or fungible material. 

(B) INVENTORY MANAGEMENT METHOD.—In this subsection, the term ‘‘inventory management method’’ means— 

(i) averaging; 

(ii) ‘‘last-in, first-out’’; 

(iii) ‘‘first-in, first-out’’; or 

(iv) any other method— 

(I) recognized in the generally accepted 

accounting principles of the country in which the 

production is performed (whether Korea or the 

United States); or 

(II) otherwise accepted by that country. 

(2) ELECTION OF INVENTORY METHOD.—A person selecting 

an inventory management method under paragraph (1) for 

a particular fungible good or fungible material shall continue 

to use that method for that fungible good or fungible material 

throughout the fiscal year of such person. 

(h) ACCESSORIES, SPARE PARTS, OR TOOLS.— 


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(1) IN GENERAL.—Subject to paragraphs (2) and (3), accessories, spare parts, or tools delivered with a good that form 

part of the good’s standard accessories, spare parts, or tools 

shall— 

(A) be treated as originating goods if the good is an 

originating good; and 

(B) be disregarded in determining whether all the nonoriginating materials used in the production of the good 

undergo the applicable change in tariff classification set 

forth in Annex 6-A of the Agreement. 

(2) CONDITIONS.—Paragraph (1) shall apply only if— 

(A) the accessories, spare parts, or tools are classified 

with and not invoiced separately from the good; and 

(B) the quantities and value of the accessories, spare 

parts, or tools are customary for the good. 

(3) REGIONAL VALUE CONTENT.—If the good is subject to 

a regional value-content requirement, the value of the accessories, spare parts, or tools shall be taken into account as 

originating or nonoriginating materials, as the case may be, 

in calculating the regional value-content of the good. 

(i) PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE.— 

Packaging materials and containers in which a good is packaged 

for retail sale, if classified with the good, shall be disregarded 

in determining whether all the nonoriginating materials used in 

the production of the good undergo the applicable change in tariff 

classification set forth in Annex 4-A or Annex 6-A of the Agreement, 

and, if the good is subject to a regional value-content requirement, 

the value of such packaging materials and containers shall be 

taken into account as originating or nonoriginating materials, as 

the case may be, in calculating the regional value-content of the 

good. 

(j) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.— 

Packing materials and containers for shipment shall be disregarded 

in determining whether a good is an originating good. 

(k) INDIRECT MATERIALS.—An indirect material shall be disregarded in determining whether a good is an originating good. 

(l) TRANSIT AND TRANSHIPMENT.—A good that has undergone 

production necessary to qualify as an originating good under subsection (b) shall not be considered to be an originating good if, 

subsequent to that production, the good— 

(1) undergoes further production or any other operation 

outside the territory of Korea or the United States, other than 

unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to 

the territory of Korea or the United States; or 

(2) does not remain under the control of customs authorities 

in the territory of a country other than Korea or the United 

States. 

(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN SETS.—Notwithstanding the rules set forth in Annex 4-A and Annex 6-A of the 

Agreement, goods classifiable as goods put up in sets for retail 

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

HTS shall not be considered to be originating goods unless— 

(1) each of the goods in the set is an originating good; 

or 

(2) the total value of the nonoriginating goods in the set 

does not exceed— 

Applicability. 


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(A) in the case of textile or apparel goods, 10 percent 

of the adjusted value of the set; or 

(B) in the case of goods, other than textile or apparel 

goods, 15 percent of the adjusted value of the set. 

(n) DEFINITIONS.—In this section: 

(1) ADJUSTED VALUE.—The term ‘‘adjusted value’’ means 

the value determined in accordance with Articles 1 through 

8, Article 15, and the corresponding interpretive notes, of the 

Agreement on Implementation of Article VII of the General 

Agreement on Tariffs and Trade 1994 referred to in section 

101(d)(8) of the Uruguay Round Agreements Act (19 U.S.C. 

3511(d)(8)), adjusted, if necessary, to exclude any costs, charges, 

or expenses incurred for transportation, insurance, and related 

services incident to the international shipment of the merchandise from the country of exportation to the place of importation. 

(2) CLASS OF MOTOR VEHICLES.—The term ‘‘class of motor 

vehicles’’ means any one of the following categories of motor 

vehicles: 

(A) Motor vehicles provided for in subheading 8701.20, 

8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 

8705 or 8706, or motor vehicles for the transport of 16 

or more persons provided for in subheading 8702.10 or 

8702.90. 

(B) Motor vehicles provided for in subheading 8701.10 

or any of subheadings 8701.30 through 8701.90. 

(C) Motor vehicles for the transport of 15 or fewer 

persons provided for in subheading 8702.10 or 8702.90, 

or motor vehicles provided for in subheading 8704.21 or 

8704.31. 

(D) Motor vehicles provided for in any of subheadings 

8703.21 through 8703.90. 

(3) FUNGIBLE GOOD OR FUNGIBLE MATERIAL.—The term 

‘‘fungible good’’ or ‘‘fungible material’’ means a good or material, 

as the case may be, that is interchangeable with another good 

or material for commercial purposes and the properties of which 

are essentially identical to such other good or material. 

(4) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.—The 

term ‘‘generally accepted accounting principles’’— 

(A) means the recognized consensus or substantial 

authoritative support given in the territory of Korea or 

the United States, as the case may be, with respect to 

the recording of revenues, expenses, costs, assets, and 

liabilities, the disclosure of information, and the preparation of financial statements; and 

(B) may encompass broad guidelines for general 

application as well as detailed standards, practices, and 

procedures. 

(5) GOOD WHOLLY OBTAINED OR PRODUCED ENTIRELY IN

THE TERRITORY OF KOREA, THE UNITED STATES, OR BOTH.— 

The term ‘‘good wholly obtained or produced entirely in the 

territory of Korea, the United States, or both’’ means any 

of the following: 

(A) Plants and plant products grown, and harvested 

or gathered, in the territory of Korea, the United States, 

or both. 

(B) Live animals born and raised in the territory of 

Korea, the United States, or both. 


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(C) Goods obtained in the territory of Korea, the United 

States, or both from live animals. 

(D) Goods obtained from hunting, trapping, fishing, 

or aquaculture conducted in the territory of Korea, the 

United States, or both. 

(E) Minerals and other natural resources not included 

in subparagraphs (A) through (D) that are extracted or 

taken from the territory of Korea, the United States, or 

both. 

(F) Fish, shellfish, and other marine life taken from 

the sea, seabed, or subsoil outside the territory of Korea 

or the United States by— 

(i) a vessel that is registered or recorded with 

Korea and flying the flag of Korea; or 

(ii) a vessel that is documented under the laws 

of the United States. 

(G) Goods produced on board a factory ship from goods 

referred to in subparagraph (F), if such factory ship— 

(i) is registered or recorded with Korea and flies 

the flag of Korea; or 

(ii) is a vessel that is documented under the laws 

of the United States. 

(H)(i) Goods taken by Korea or a person of Korea 

from the seabed or subsoil outside the territory of Korea, 

the United States, or both, if Korea has rights to exploit 

such seabed or subsoil; or 

(ii) Goods taken by the United States or a person 

of the United States from the seabed or subsoil outside 

the territory of the United States, Korea, or both, if the 

United States has rights to exploit such seabed or subsoil. 

(I) Goods taken from outer space, if the goods are 

obtained by Korea or the United States or a person of 

Korea or the United States and not processed in the territory of a country other than Korea or the United States. 

(J) Waste and scrap derived from— 

(i) manufacturing or processing operations in the 

territory of Korea, the United States, or both; or 

(ii) used goods collected in the territory of Korea, 

the United States, or both, if such goods are fit only 

for the recovery of raw materials. 

(K) Recovered goods derived in the territory of Korea, 

the United States, or both, from used goods, and used 

in the territory of Korea, the United States, or both, in 

the production of remanufactured goods. 

(L) Goods, at any stage of production, produced in 

the territory of Korea, the United States, or both, exclusively from— 

(i) goods referred to in any of subparagraphs (A) 

through (J); or 

(ii) the derivatives of goods referred to in clause 

(i). 

(6) IDENTICAL GOODS.—The term ‘‘identical goods’’ means 

goods that are the same in all respects relevant to the rule 

of origin that qualifies the goods as originating goods. 

(7) INDIRECT MATERIAL.—The term ‘‘indirect material’’ 

means a good used in the production, testing, or inspection 

of another good but not physically incorporated into that other 


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good, or a good used in the maintenance of buildings or the 

operation of equipment associated with the production of 

another good, including— 

(A) fuel and energy; 

(B) tools, dies, and molds; 

(C) spare parts and materials used in the maintenance 

of equipment or buildings; 

(D) lubricants, greases, compounding materials, and 

other materials used in production or used to operate equipment or buildings; 

(E) gloves, glasses, footwear, clothing, safety equipment, and supplies; 

(F) equipment, devices, and supplies used for testing 

or inspecting the good; 

(G) catalysts and solvents; and 

(H) any other good that is not incorporated into the 

other good but the use of which in the production of the 

other good can reasonably be demonstrated to be a part 

of that production. 

(8) MATERIAL.—The term ‘‘material’’ means a good that 

is used in the production of another good, including a part 

or an ingredient. 

(9) MATERIAL THAT IS SELF-PRODUCED.—The term ‘‘material 

that is self-produced’’ means an originating material that is 

produced by a producer of a good and used in the production 

of that good. 

(10) MODEL LINE OF MOTOR VEHICLES.—The term ‘‘model 

line of motor vehicles’’ means a group of motor vehicles having 

the same platform or model name. 

(11) NET COST.—The term ‘‘net cost’’ means total cost minus 

sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest 

costs that are included in the total cost. 

(12) NONALLOWABLE INTEREST COSTS.—The term ‘‘nonallowable interest costs’’ means interest costs incurred by a producer 

that exceed 700 basis points above the applicable official 

interest rate for comparable maturities of the country in which 

the producer is located. 

(13) NONORIGINATING GOOD OR NONORIGINATING MATERIAL.—The term ‘‘nonoriginating good’’ or ‘‘nonoriginating material’’ means a good or material, as the case may be, that 

does not qualify as originating under this section. 

(14) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.— 

The term ‘‘packing materials and containers for shipment’’ 

means goods used to protect another good during its transportation and does not include the packaging materials and containers in which the other good is packaged for retail sale. 

(15) PREFERENTIAL TARIFF TREATMENT.—The term ‘‘preferential tariff treatment’’ means the customs duty rate, and 

the treatment under article 2.10.4 of the Agreement, that are 

applicable to an originating good pursuant to the Agreement. 

(16) PRODUCER.—The term ‘‘producer’’ means a person who 

engages in the production of a good in the territory of Korea 

or the United States. 

(17) PRODUCTION.—The term ‘‘production’’ means growing, 

mining, harvesting, fishing, breeding, raising, trapping, 


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hunting, manufacturing, processing, assembling, or disassembling a good. 

(18) REASONABLY ALLOCATE.—The term ‘‘reasonably allocate’’ means to apportion in a manner that would be appropriate 

under generally accepted accounting principles. 

(19) RECOVERED GOODS.—The term ‘‘recovered goods’’ 

means materials in the form of individual parts that are the 

result of— 

(A) the disassembly of used goods into individual parts; 

and 

(B) the cleaning, inspecting, testing, or other processing 

that is necessary for improvement to sound working condition of such individual parts. 

(20) REMANUFACTURED GOOD.—The term ‘‘remanufactured 

good’’ means a good that is classified under chapter 84, 85, 

87, or 90 or heading 9402, and that— 

(A) is entirely or partially comprised of recovered goods; 

and 

(B) has a similar life expectancy and enjoys a factory 

warranty similar to such a good that is new. 

(21) TOTAL COST.— 

(A) IN GENERAL.—The term ‘‘total cost’’— 

(i) means all product costs, period costs, and other 

costs for a good incurred in the territory of Korea, 

the United States, or both; and 

(ii) does not include profits that are earned by 

the producer, regardless of whether they are retained 

by the producer or paid out to other persons as dividends, or taxes paid on those profits, including capital 

gains taxes. 

(B) OTHER DEFINITIONS.—In this paragraph: 

(i) PRODUCT COSTS.—The term ‘‘product costs’’ 

means costs that are associated with the production 

of a good and include the value of materials, direct 

labor costs, and direct overhead. 

(ii) PERIOD COSTS.—The term ‘‘period costs’’ means 

costs, other than product costs, that are expensed in 

the period in which they are incurred, such as selling 

expenses and general and administrative expenses. 

(iii) OTHER COSTS.—The term ‘‘other costs’’ means 

all costs recorded on the books of the producer that 

are not product costs or period costs, such as interest. 

(22) USED.—The term ‘‘used’’ means utilized or consumed 

in the production of goods. 

(o) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

(1) IN GENERAL.—The President is authorized to proclaim, 

as part of the HTS— 

(A) the provisions set forth in Annex 4-A and Annex 

6-A of the Agreement; and 

(B) any additional subordinate category that is necessary to carry out this title consistent with the Agreement. 

(2) MODIFICATIONS.— 

(A) IN GENERAL.—Subject to the consultation and layover provisions of section 104, the President may proclaim 

modifications to the provisions proclaimed under the 


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authority of paragraph (1)(A), other than provisions of chapters 50 through 63 (as included in Annex 4-A of the Agreement). 

(B) ADDITIONAL PROCLAMATIONS.—Notwithstanding 

subparagraph (A), and subject to the consultation and layover provisions of section 104, the President may proclaim— 

(i) such modifications to the provisions proclaimed 

under the authority of paragraph (1)(A) as are necessary to implement an agreement with Korea pursuant to article 4.2.5 of the Agreement; and 

(ii) before the end of the 1-year period beginning 

on the date on which the Agreement enters into force, 

modifications to correct any typographical, clerical, or 

other nonsubstantive technical error regarding the 

provisions of chapters 50 through 63 (as included in 

Annex 4-A of the Agreement). 

(3) FIBERS, YARNS, OR FABRICS NOT AVAILABLE IN COMMERCIAL QUANTITIES IN THE UNITED STATES.— 

(A) IN GENERAL.—Notwithstanding paragraph (2)(A), 

the list of fibers, yarns, and fabrics set forth in the list 

of the United States in Appendix 4-B-1 of the Agreement 

may be modified as provided for in this paragraph. 

(B) DEFINITIONS.—In this paragraph: 

(i) INTERESTED ENTITY.—The term ‘‘interested 

entity’’ means the Government of Korea, a potential 

or actual purchaser of a textile or apparel good, or 

a potential or actual supplier of a textile or apparel 

good. 

(ii) DAY; DAYS.—All references to ‘‘day’’ and ‘‘days’’ 

exclude Saturdays, Sundays, and legal holidays 

observed by the Government of the United States. 

(C) REQUESTS TO ADD FIBERS, YARNS, OR FABRICS.— 

(i) IN GENERAL.—An interested entity may request 

the President to determine that a fiber, yarn, or fabric 

is not available in commercial quantities in a timely 

manner in the United States and to add that fiber, 

yarn, or fabric to the list of the United States in 

Appendix 4-B-1 of the Agreement. 

(ii) DETERMINATION.—After receiving a request 

under clause (i), the President may determine 

whether— 

(I) the fiber, yarn, or fabric is available in 

commercial quantities in a timely manner in the 

United States; or 

(II) any interested entity objects to the 

request. 

(iii) PROCLAMATION AUTHORITY.—The President 

may, within the time periods specified in clause (iv), 

proclaim that the fiber, yarn, or fabric that is the 

subject of the request is added to the list of the United 

States in Appendix 4-B-1 of the Agreement, if the 

President has determined under clause (ii) that— 

(I) the fiber, yarn, or fabric is not available 

in commercial quantities in a timely manner in 

the United States; or 

Time period. 


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(II) no interested entity has objected to the 

request. 

(iv) TIME PERIODS.—The time periods within which 

the President may issue a proclamation under clause 

(iii) are— 

(I) not later than 30 days after the date on 

which a request is submitted under clause (i); or 

(II) not later than 60 days after the request 

is submitted, if the President determines, within 

30 days after the date on which the request is 

submitted, that the President does not have sufficient information to make a determination under 

clause (ii). 

(v) EFFECTIVE DATE.—Notwithstanding section 

103(a)(2), a proclamation made under clause (iii) shall 

take effect on the date on which the text of the 

proclamation is published in the Federal Register. 

(D) DEEMED DENIAL OF REQUEST.—If, after an 

interested entity submits a request under subparagraph 

(C)(i), the President does not, within 30 days of the expiration of the applicable time period specified in subparagraph 

(C)(iv), make a determination under subparagraph (C)(ii) 

regarding the request, the request shall be considered to 

be denied. 

(E) REQUESTS TO REMOVE FIBERS, YARNS, OR FABRICS.— 

(i) IN GENERAL.—An interested entity may request 

the President to remove from the list of the United 

States in Appendix 4-B-1 of the Agreement, any fiber, 

yarn, or fabric that has been added to that list pursuant to subparagraph (C)(iii). 

(ii) PROCLAMATION AUTHORITY.—Not later than 30 

days after the date on which a request under clause 

(i) is submitted, the President may proclaim that the 

fiber, yarn, or fabric that is the subject of the request 

is removed from the list of the United States in 

Appendix 4-B-1 of the Agreement if the President 

determines that the fiber, yarn, or fabric is available 

in commercial quantities in a timely manner in the 

United States. 

(iii) EFFECTIVE DATE.—A proclamation issued 

under clause (ii) may not take effect earlier than the 

date that is 6 months after the date on which the 

text of the proclamation is published in the Federal 

Register. 

(F) PROCEDURES.—The President shall establish procedures— 

(i) governing the submission of a request under 

subparagraphs (C) and (E); and 

(ii) providing an opportunity for interested entities 

to submit comments and supporting evidence before 

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

SEC. 203. CUSTOMS USER FEES. 

Section 13031(b) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after 

paragraph (18) the following: 

Deadline. 

Deadline. 


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‘‘(19) No fee may be charged under subsection (a) (9) or (10) 

with respect to goods that qualify as originating goods under section 

202 of the United States–Korea Free Trade Agreement Implementation Act. Any service for which an exemption from such fee is 

provided by reason of this paragraph may not be funded with 

money contained in the Customs User Fee Account.’’. 

SEC. 204. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF ORIGIN; DENIAL OF PREFERENTIAL TARIFF 

TREATMENT. 

(a) DISCLOSURE OF INCORRECT INFORMATION.—Section 592 of 

the Tariff Act of 1930 (19 U.S.C. 1592) is amended— 

(1) in subsection (c)— 

(A) by redesignating paragraph (11) as paragraph (12); 

and 

(B) by inserting after paragraph (10) the following 

new paragraph: 

‘‘(11) PRIOR DISCLOSURE REGARDING CLAIMS UNDER THE

UNITED STATES–KOREA FREE TRADE AGREEMENT.—An importer 

shall not be subject to penalties under subsection (a) for making 

an incorrect claim that a good qualifies as an originating good 

under section 202 of the United States–Korea Free Trade Agreement Implementation Act if the importer, in accordance with 

regulations issued by the Secretary of the Treasury, promptly 

and voluntarily makes a corrected declaration and pays any 

duties owing with respect to that good.’’; and 

(2) by adding at the end the following new subsection: 

‘‘(j) FALSE CERTIFICATIONS OF ORIGIN UNDER THE UNITED

STATES–KOREA FREE TRADE AGREEMENT.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2), it is unlawful 

for any person to certify falsely, by fraud, gross negligence, 

or negligence, in a KFTA certification of origin (as defined 

in section 508 of this Act) that a good exported from the 

United States qualifies as an originating good under the rules 

of origin provided for in section 202 of the United States– 

Korea Free Trade Agreement Implementation Act. The procedures and penalties of this section that apply to a violation 

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

‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF INCORRECT

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

a KFTA certification of origin has reason to believe that such 

certification contains or is based on incorrect information, the 

exporter or producer voluntarily provides written notice of such 

incorrect information to every person to whom the certification 

was issued. 

‘‘(3) EXCEPTION.—A person shall not be considered to have 

violated paragraph (1) if— 

‘‘(A) the information was correct at the time it was 

provided in a KFTA certification of origin but was later 

rendered incorrect due to a change in circumstances; and 

‘‘(B) the person promptly and voluntarily provides written notice of the change in circumstances to all persons 

to whom the person provided the certification.’’. 

(b) DENIAL OF PREFERENTIAL TARIFF TREATMENT.—Section 514 

of the Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding 

at the end the following new subsection: 

Notice. 

Applicability. 

Regulations. 


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‘‘(j) DENIAL OF PREFERENTIAL TARIFF TREATMENT UNDER THE

UNITED STATES–KOREA FREE TRADE AGREEMENT.—If U.S. Customs 

and Border Protection or U.S. Immigration and Customs Enforcement of the Department of Homeland Security finds indications 

of a pattern of conduct by an importer, exporter, or producer of 

false or unsupported representations that goods qualify under the 

rules of origin provided for in section 202 of the United States– 

Korea Free Trade Agreement Implementation Act, U.S. Customs 

and Border Protection, in accordance with regulations issued by 

the Secretary of the Treasury, may suspend preferential tariff treatment under the United States–Korea Free Trade Agreement 

Implementation Act to entries of identical goods covered by subsequent representations by that importer, exporter, or producer until 

U.S. Customs and Border Protection determines that representations of that person are in conformity with such section 202.’’. 

SEC. 205. RELIQUIDATION OF ENTRIES. 

Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 1520(d)) 

is amended in the matter preceding paragraph (1)— 

(1) by striking ‘‘or’’; and 

(2) by striking ‘‘for which’’ and inserting ‘‘, or section 202 

of the United States–Korea Free Trade Agreement Implementation Act for which’’. 

SEC. 206. RECORDKEEPING REQUIREMENTS. 

Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is 

amended— 

(1) by redesignating subsection (i) as subsection (j); 

(2) by inserting after subsection (h) the following new subsection: 

‘‘(i) CERTIFICATIONS OF ORIGIN FOR GOODS EXPORTED UNDER

THE UNITED STATES–KOREA FREE TRADE AGREEMENT.— ‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) RECORDS AND SUPPORTING DOCUMENTS.—The term 

‘records and supporting documents’ means, with respect 

to an exported good under paragraph (2), records and documents related to the origin of the good, including— 

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

for, the good; 

‘‘(ii) the purchase, cost, and value of, and payment 

for, all materials, including indirect materials, used 

in the production of the good; and 

‘‘(iii) the production of the good in the form in 

which it was exported. 

‘‘(B) KFTA CERTIFICATION OF ORIGIN.—The term ‘KFTA 

certification of origin’ means the certification established 

under article 6.15 of the United States–Korea Free Trade 

Agreement that a good qualifies as an originating good 

under such Agreement. 

‘‘(2) EXPORTS TO KOREA.—Any person who completes and 

issues a KFTA certification of origin for a good exported from 

the United States shall make, keep, and, pursuant to rules 

and regulations promulgated by the Secretary of the Treasury, 

render for examination and inspection all records and supporting documents related to the origin of the good (including 

the certification or copies thereof). 

‘‘(3) RETENTION PERIOD.—The person who issues a KFTA 

certification of origin shall keep the records and supporting 

Regulations. 

Records. 


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125 STAT. 450 PUBLIC LAW 112–41—OCT. 21, 2011 

documents relating to that certification of origin for a period 

of at least 5 years after the date on which the certification 

is issued.’’; and 

(3) in subsection (j), as so redesignated, by striking ‘‘(g), 

or (h)’’ and inserting ‘‘(g), (h), or (i)’’. 

SEC. 207. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR 

APPAREL GOODS. 

(a) ACTION DURING VERIFICATION.— 

(1) IN GENERAL.—If the Secretary of the Treasury requests 

the Government of Korea to conduct a verification pursuant 

to article 4.3 of the Agreement for purposes of making a determination under paragraph (2), the President may direct the 

Secretary to take appropriate action described in subsection 

(b) while the verification is being conducted. 

(2) DETERMINATION.—A determination under this paragraph is a determination of the Secretary that— 

(A) an exporter or producer in Korea is complying 

with applicable customs laws, regulations, procedures, 

requirements, and practices affecting trade in textile or 

apparel goods; or 

(B) a claim that a textile or apparel good exported 

or produced by such exporter or producer— 

(i) qualifies as an originating good under section 

202, or 

(ii) is a good of Korea, 

is accurate. 

(b) APPROPRIATE ACTION DESCRIBED.—Appropriate action under 

subsection (a)(1) includes— 

(1) suspension of liquidation of the entry of any textile 

or apparel good exported or produced by the person that is 

the subject of a verification under subsection (a)(1) regarding 

compliance described in subsection (a)(2)(A), in a case in which 

the request for verification was based on a reasonable suspicion 

of unlawful activity related to such goods; and 

(2) suspension of liquidation of the entry of a textile or 

apparel good for which a claim has been made that is the 

subject of a verification under subsection (a)(1) regarding a 

claim described in subsection (a)(2)(B). 

(c) ACTION WHEN INFORMATION IS INSUFFICIENT.—If the Secretary of the Treasury determines that the information obtained 

within 12 months after making a request for a verification under 

subsection (a)(1) is insufficient to make a determination under 

subsection (a)(2), the President may direct the Secretary to take 

appropriate action described in subsection (d) until such time as 

the Secretary receives information sufficient to make the determination under subsection (a)(2) or until such earlier date as the President may direct. 

(d) APPROPRIATE ACTION DESCRIBED.—Appropriate action under 

subsection (c) includes— 

(1) denial of preferential tariff treatment under the Agreement with respect to— 

(A) any textile or apparel good exported or produced 

by the person that is the subject of a verification under 

subsection (a)(1) regarding compliance described in subsection (a)(2)(A); or 


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PUBLIC LAW 112–41—OCT. 21, 2011 125 STAT. 451 

(B) the textile or apparel good for which a claim has 

been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection 

(a)(2)(B); and 

(2) denial of entry into the United States of— 

(A) any textile or apparel good exported or produced 

by the person that is the subject of a verification under 

subsection (a)(1) regarding compliance described in subsection (a)(2)(A); or 

(B) a textile or apparel good for which a claim has 

been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection 

(a)(2)(B). 

(e) PUBLICATION OF NAME OF PERSON.—In accordance with 

article 4.3.11 of the Agreement, the Secretary of the Treasury 

may publish the name of any person that the Secretary has determined— 

(1) is engaged in circumvention of applicable laws, regulations, or procedures affecting trade in textile or apparel goods; 

or 

(2) has failed to demonstrate that it produces, or is capable 

of producing, textile or apparel goods. 

(f) CERTIFICATE OF ELIGIBILITY.—The Commissioner responsible 

for U.S. Customs and Border Protection of the Department of Homeland Security may require an importer to submit at the time the 

importer files a claim for preferential tariff treatment under Annex 

4-B of the Agreement a certificate of eligibility, properly completed 

and signed by an authorized official of the Government of Korea. 

(g) VERIFICATIONS IN THE UNITED STATES.—If the government 

of a country that is a party to a free trade agreement with the 

United States makes a request for a verification pursuant to that 

agreement, the Secretary of the Treasury may request a verification 

of the production of any textile or apparel good in order to assist 

that government in determining whether— 

(1) a claim of origin under the agreement for a textile 

or apparel good is accurate; or 

(2) an exporter, producer, or other enterprise located in 

the United States involved in the movement of textile or apparel 

goods from the United States to the territory of the requesting 

government is complying with applicable customs laws, regulations, and procedures regarding trade in textile or apparel 

goods. 

SEC. 208. REGULATIONS. 

The Secretary of the Treasury shall prescribe such regulations 

as may be necessary to carry out— 

(1) subsections (a) through (n) of section 202; 

(2) the amendment made by section 203; and 

(3) any proclamation issued under section 202(o). 

TITLE III—RELIEF FROM IMPORTS 

SEC. 301. DEFINITIONS. 

In this title: 


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(1) KOREAN ARTICLE.—The term ‘‘Korean article’’ means 

an article that qualifies as an originating good under section 

202(b). 

(2) KOREAN MOTOR VEHICLE ARTICLE.—The term ‘‘Korean 

motor vehicle article’’ means a good provided for in heading 

8703 or 8704 of the HTS that qualifies as an originating good 

under section 202(b). 

(3) KOREAN TEXTILE OR APPAREL ARTICLE.—The term 

‘‘Korean textile or apparel article’’ means a textile or apparel 

good (as defined in section 3(5)) that is a Korean article. 

Subtitle A—Relief From Imports 

Benefitting From the Agreement 

SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

(a) FILING OF PETITION.— 

(1) IN GENERAL.—A petition requesting action under this 

subtitle for the purpose of adjusting to the obligations of the 

United States under the Agreement may be filed with the 

Commission by an entity, including a trade association, firm, 

certified or recognized union, or group of workers, that is representative of an industry. The Commission shall transmit 

a copy of any petition filed under this subsection to the United 

States Trade Representative. 

(2) PROVISIONAL RELIEF.—An entity filing a petition under 

this subsection may request that provisional relief be provided 

as if the petition had been filed under section 202(a) of the 

Trade Act of 1974 (19 U.S.C. 2252(a)). 

(3) CRITICAL CIRCUMSTANCES.—Any allegation that critical 

circumstances exist shall be included in the petition. 

(b) INVESTIGATION AND DETERMINATION.—Upon the filing of 

a petition under subsection (a), the Commission, unless subsection 

(d) applies, shall promptly initiate an investigation to determine 

whether, as a result of the reduction or elimination of a duty 

provided for under the Agreement, a Korean article is being 

imported into the United States in such increased quantities, in 

absolute terms or relative to domestic production, and under such 

conditions that imports of the Korean article constitute a substantial 

cause of serious injury or threat thereof to the domestic industry 

producing an article that is like, or directly competitive with, the 

imported article. 

(c) APPLICABLE PROVISIONS.—The following provisions of section 

202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect 

to any investigation initiated under subsection (b): 

(1) Paragraphs (1)(B) and (3) of subsection (b). 

(2) Subsection (c). 

(3) Subsection (d). 

(4) Subsection (i). 

(d) ARTICLES EXEMPT FROM INVESTIGATION.—No investigation 

may be initiated under this section with respect to any Korean 

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

import relief has been provided with respect to that Korean article 

under this subtitle. 


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PUBLIC LAW 112–41—OCT. 21, 2011 125 STAT. 453 

SEC. 312. COMMISSION ACTION ON PETITION. 

(a) DETERMINATION.—Not later than 120 days (180 days if 

critical circumstances have been alleged) after the date on which 

an investigation is initiated under section 311(b) with respect to 

a petition, the Commission shall make the determination required 

under that section. 

(b) APPLICABLE PROVISIONS.—For purposes of this subtitle, the 

provisions of paragraphs (1), (2), and (3) of section 330(d) of the 

Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 

applied with respect to determinations and findings made under 

this section as if such determinations and findings were made 

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

(c) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINATION AFFIRMATIVE.— 

(1) IN GENERAL.—If the determination made by the 

Commission under subsection (a) with respect to imports of 

an article is affirmative, or if the President may consider a 

determination of the Commission to be an affirmative determination as provided for under paragraph (1) of section 330(d) 

of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the Commission 

shall find, and recommend to the President in the report 

required under subsection (d), the amount of import relief that 

is necessary to remedy or prevent the injury found by the 

Commission in the determination and to facilitate the efforts 

of the domestic industry to make a positive adjustment to 

import competition. 

(2) LIMITATION ON RELIEF.—The import relief recommended 

by the Commission under this subsection shall be limited to 

the relief described in section 313(c). 

(3) VOTING; SEPARATE VIEWS.—Only those members of the 

Commission who voted in the affirmative under subsection 

(a) are eligible to vote on the proposed action to remedy or 

prevent the injury found by the Commission. Members of the 

Commission who did not vote in the affirmative may submit, 

in the report required under subsection (d), separate views 

regarding what action, if any, should be taken to remedy or 

prevent the injury. 

(d) REPORT TO PRESIDENT.—Not later than the date that is 

30 days after the date on which a determination is made under 

subsection (a) with respect to an investigation, the Commission 

shall submit to the President a report that includes— 

(1) the determination made under subsection (a) and an 

explanation of the basis for the determination; 

(2) if the determination under subsection (a) is affirmative, 

any findings and recommendations for import relief made under 

subsection (c) and an explanation of the basis for each recommendation; and 

(3) any dissenting or separate views by members of the 

Commission regarding the determination referred to in paragraph (1) and any finding or recommendation referred to in 

paragraph (2). 

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

under subsection (d), the Commission shall promptly make public 

the report (with the exception of information which the Commission 

determines to be confidential) and shall publish a summary of 

the report in the Federal Register. 

Deadline. 


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125 STAT. 454 PUBLIC LAW 112–41—OCT. 21, 2011 

SEC. 313. PROVISION OF RELIEF. 

(a) IN GENERAL.—Not later than the date that is 30 days 

after the date on which the President receives a report of the 

Commission in which the Commission’s determination under section 

312(a) is affirmative, or which contains a determination under 

section 312(a) that the President considers to be affirmative under 

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

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

relief from imports of the article that is the subject of such determination to the extent that the President determines necessary 

to remedy or prevent the injury found by the Commission and 

to facilitate the efforts of the domestic industry to make a positive 

adjustment to import competition. 

(b) EXCEPTION.—The President is not required to provide import 

relief under this section if the President determines that the provision of the import relief will not provide greater economic and 

social benefits than costs. 

(c) NATURE OF RELIEF.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

import relief that the President is authorized to provide under 

this section with respect to imports of an article is as follows: 

(A) The suspension of any further reduction provided 

for under Annex 2-B of the Agreement in the duty imposed 

on the article. 

(B) An increase in the rate of duty imposed on the 

article to a level that does not exceed the lesser of— 

(i) the column 1 general rate of duty imposed under 

the HTS on like articles at the time the import relief 

is provided; or 

(ii) the column 1 general rate of duty imposed 

under the HTS on like articles on the day before the 

date on which the Agreement enters into force. 

(2) DUTIES APPLIED ON A SEASONAL BASIS.—In the case 

of imports of an article to which a duty is applied on a seasonal 

basis, the import relief that the President is authorized to 

provide under this section is as follows: 

(A) The suspension of any further reduction provided 

for under Annex 2-B of the Agreement in the duty imposed 

on the article. 

(B) An increase in the rate of duty imposed on the 

article to a level that does not exceed the lesser of— 

(i) the column 1 general rate of duty imposed under 

the HTS on like articles for the corresponding season 

immediately preceding the date the import relief is 

provided; or 

(ii) the column 1 general rate of duty imposed 

under the HTS for the corresponding season immediately preceding the date on which the Agreement 

enters into force. 

(3) PROGRESSIVE LIBERALIZATION.—If the period for which 

import relief is provided under this section is greater than 

1 year, the President shall provide for the progressive liberalization (described in article 10.2.7 of the Agreement) of such 

relief at regular intervals during the period of its application. 

(d) PERIOD OF RELIEF.— 

Deadline. 

President. 


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PUBLIC LAW 112–41—OCT. 21, 2011 125 STAT. 455 

(1) IN GENERAL.—Subject to paragraph (2), any import relief 

that the President provides under this section may not be 

in effect for more than 2 years. 

(2) EXTENSION.— 

(A) IN GENERAL.—Subject to subparagraph (C), the 

President, after receiving a determination from the 

Commission under subparagraph (B) that is affirmative, 

or which the President considers to be affirmative under 

paragraph (1) of section 330(d) of the Tariff Act of 1930 

(19 U.S.C. 1330(d)(1)), may extend the effective period of 

any import relief provided under this section by up to 

1 year, if the President determines that— 

(i) the import relief continues to be necessary to 

remedy or prevent serious injury and to facilitate 

adjustment by the domestic industry to import competition; and 

(ii) there is evidence that the industry is making 

a positive adjustment to import competition. 

(B) ACTION BY COMMISSION.— 

(i) INVESTIGATION.—Upon a petition on behalf of 

the industry concerned that is filed with the Commission not earlier than the date that is 9 months, and 

not later than the date that is 6 months, before the 

date on which any action taken under subsection (a) 

is to terminate, the Commission shall conduct an investigation to determine whether action under this section 

continues to be necessary to remedy or prevent serious 

injury and whether there is evidence that the industry 

is making a positive adjustment to import competition. 

(ii) NOTICE AND HEARING.—The Commission shall 

publish notice of the commencement of any proceeding 

under this subparagraph in the Federal Register and 

shall, within a reasonable time thereafter, hold a public 

hearing at which the Commission shall afford 

interested parties and consumers an opportunity to 

be present, to present evidence, and to respond to 

the presentations of other parties and consumers, and 

otherwise to be heard. 

(iii) REPORT.—The Commission shall submit to the 

President a report on its investigation and determination under this subparagraph not later than 60 days 

before the action under subsection (a) is to terminate, 

unless the President specifies a different date. 

(C) PERIOD OF IMPORT RELIEF.—Any import relief provided under this section, including any extensions thereof, 

may not, in the aggregate, be in effect for more than 

3 years. 

(e) RATE AFTER TERMINATION OF IMPORT RELIEF.—Beginning 

on the date on which import relief under this section is terminated 

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

be the rate that would have been in effect but for the provision 

of such relief. 

(f) ARTICLES EXEMPT FROM RELIEF.—No import relief may be 

provided under this section on any article that is subject to import 

relief under— 

(1) subtitle B or C; or 

Effective date. 

Federal Register, 

publication. 

Deadlines. 


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125 STAT. 456 PUBLIC LAW 112–41—OCT. 21, 2011 

(2) chapter 1 of title II of the Trade Act of 1974 (19 

U.S.C. 2251 et seq.). 

SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

(a) GENERAL RULE.—Subject to subsection (b), no import relief 

may be provided under this subtitle after the date that is 10 

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

(b) EXCEPTION.—If an article for which relief is provided under 

this subtitle is an article for which the period for tariff elimination, 

set forth in the Schedule of the United States to Annex 2-B of 

the Agreement, is greater than 10 years, no relief under this subtitle 

may be provided for that article after the date on which that 

period ends. 

(c) PRESIDENTIAL DETERMINATION.—Import relief may be provided under this subtitle in the case of a Korean article after 

the date on which such relief would, but for this subsection, terminate under subsection (a) and (b), if the President determines 

that Korea has consented to such relief. 

SEC. 315. COMPENSATION AUTHORITY. 

For purposes of section 123 of the Trade Act of 1974 (19 

U.S.C. 2133), any import relief provided by the President under 

section 313 shall be treated as action taken under chapter 1 of 

title II of such Act (19 U.S.C. 2251 et seq.). 

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 

is amended in the first sentence— 

(1) by striking ‘‘and’’; and 

(2) by inserting before the period at the end ‘‘, and title 

III of the United States–Korea Free Trade Agreement 

Implementation Act’’. 

Subtitle B—Motor Vehicle Safeguard 

Measures 

SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES. 

The provisions of subtitle A shall apply with respect to a 

Korean motor vehicle article to the same extent that such provisions 

apply to Korean articles, except as follows: 

(1) Section 311(d) and paragraphs (2) and (3) of 313(c) 

shall not apply. 

(2) Section 313(d)(2)(A) shall be applied and administered 

by substituting ‘‘2 years’’ for ‘‘1 year’’. 

(3) Section 313(d)(2)(C) shall be applied and administered 

by substituting ‘‘4 years’’ for ‘‘3 years’’. 

(4) Section 313(f)(1) shall be applied and administered by 

substituting ‘‘subtitle A’’ for ‘‘subtitle B or C’’. 

(5) Section 314(b) shall be applied and administered as 

if such section read as follows: 

‘‘(b) EXCEPTION.—Import relief may be provided under this 

subtitle with respect to a Korean motor vehicle article during any 

period before the date that is 10 years after the date on which 

duties on the article are eliminated, as set forth in section 201(d), 

or, if the article is not referred to in section 201(d), the Schedule 

of the United States to Annex 2-B of the Agreement.’’. 

Applicability. 


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PUBLIC LAW 112–41—OCT. 21, 2011 125 STAT. 457 

Subtitle C—Textile and Apparel Safeguard 

Measures 

SEC. 331. COMMENCEMENT OF ACTION FOR RELIEF. 

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

the purpose of adjusting to the obligations of the United States 

under the Agreement may be filed with the President by an 

interested party. Upon the filing of a request, the President shall 

review the request to determine, from information presented in 

the request, whether to commence consideration of the request. 

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

the request under subsection (a) provides the information necessary 

for the request to be considered, the President shall publish in 

the Federal Register a notice of commencement of consideration 

of the request, and notice seeking public comments regarding the 

request. The notice shall include a summary of the request and 

the dates by which comments and rebuttals must be received. 

SEC. 332. DETERMINATION AND PROVISION OF RELIEF. 

(a) DETERMINATION.— 

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

section 331(b), the President shall determine whether, as a 

result of the reduction or elimination of a duty under the 

Agreement, a Korean textile or apparel article is being imported 

into the United States in such increased quantities, in absolute 

terms or relative to the domestic market for that article, and 

under such conditions as to cause serious damage, or actual 

threat thereof, to a domestic industry producing an article 

that is like, or directly competitive with, the imported article. 

(2) SERIOUS DAMAGE.—In making a determination under 

paragraph (1), the President— 

(A) shall examine the effect of increased imports on 

the domestic industry, as reflected in changes in such relevant economic factors as output, productivity, utilization 

of capacity, inventories, market share, exports, wages, 

employment, domestic prices, profits, and investment, no 

one of which is necessarily decisive; and 

(B) shall not consider changes in technology or consumer preference as factors supporting a determination 

of serious damage or actual threat thereof. 

(b) PROVISION OF RELIEF.— 

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

is affirmative, the President may provide relief from imports 

of the article that is the subject of such determination, as 

provided in paragraph (2), to the extent that the President 

determines necessary to remedy or prevent the serious damage 

and to facilitate adjustment by the domestic industry. 

(2) NATURE OF RELIEF.—The relief that the President is 

authorized to provide under this subsection with respect to 

imports of an article is— 

(A) the suspension of any further reduction provided 

for under Annex 2-B of the Agreement in the duty imposed 

on the article; or 

(B) an increase in the rate of duty imposed on the 

article to a level that does not exceed the lesser of— 

President. 

Federal Register, 

publication. 

Review. 

President. 


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(i) the column 1 general rate of duty imposed under 

the HTS on like articles at the time the import relief 

is provided; or 

(ii) the column 1 general rate of duty imposed 

under the HTS on like articles on the day before the 

date on which the Agreement enters into force. 

SEC. 333. PERIOD OF RELIEF. 

(a) IN GENERAL.—Subject to subsection (b), the import relief 

that the President provides under section 332(b) may not be in 

effect for more than 2 years. 

(b) EXTENSION.— (1) IN GENERAL.—Subject to paragraph (2), the President 

may extend the effective period of any import relief provided 

under this subtitle for a period of not more than 2 years, 

if the President determines that— 

(A) the import relief continues to be necessary to 

remedy or prevent serious damage and to facilitate adjustment by the domestic industry to import competition; and 

(B) there is evidence that the industry is making a 

positive adjustment to import competition. 

(2) LIMITATION.—Any relief provided under this subtitle, 

including any extensions thereof, may not, in the aggregate, 

be in effect for more than 4 years. 

SEC. 334. ARTICLES EXEMPT FROM RELIEF. 

The President may not provide import relief under this subtitle 

with respect to an article if— 

(1) import relief previously has been provided under this 

subtitle with respect to that article; or 

(2) the article is subject to import relief under— 

(A) subtitle A; or 

(B) chapter 1 of title II of the Trade Act of 1974 

(19 U.S.C. 2251 et seq.). 

SEC. 335. RATE AFTER TERMINATION OF IMPORT RELIEF. 

On the date on which import relief under this subtitle is terminated with respect to an article, the rate of duty on that article 

shall be the rate that would have been in effect but for the provision 

of such relief. 

SEC. 336. TERMINATION OF RELIEF AUTHORITY. 

No import relief may be provided under this subtitle with 

respect to any article after the date that is 10 years after the 

date on which duties on the article are eliminated pursuant to 

the Agreement. 

SEC. 337. COMPENSATION AUTHORITY. 

For purposes of section 123 of the Trade Act of 1974 (19 

U.S.C. 2133), any import relief provided by the President under 

this subtitle shall be treated as action taken under chapter 1 

of title II of such Act (19 U.S.C. 2251 et seq.). 

SEC. 338. CONFIDENTIAL BUSINESS INFORMATION. 

The President may not release information received in connection with an investigation or determination under this subtitle 

which the President considers to be confidential business information unless the party submitting the confidential business information had notice, at the time of submission, that such information 


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would be released by the President, or such party subsequently 

consents to the release of the information. To the extent a party 

submits confidential business information, the party shall also provide a nonconfidential version of the information in which the 

confidential business information is summarized or, if necessary, 

deleted. 

Subtitle D—Cases Under Title II of the 

Trade Act of 1974 

SEC. 341. FINDINGS AND ACTION ON KOREAN ARTICLES. 

(a) EFFECT OF IMPORTS.—If, in any investigation initiated under 

chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 

et seq.), the Commission makes an affirmative determination (or 

a determination which the President may treat as an affirmative 

determination under such chapter by reason of section 330(d) of 

the Tariff Act of 1930 (19 U.S.C. 1330(d))), the Commission shall 

also find (and report to the President at the time such injury 

determination is submitted to the President) whether imports of 

the Korean article are a substantial cause of serious injury or 

threat thereof. 

(b) PRESIDENTIAL DETERMINATION REGARDING KOREAN ARTICLES.—In determining the nature and extent of action to be taken 

under chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 

2251 et seq.), the President may exclude from the action Korean 

articles with respect to which the Commission has made a negative 

finding under subsection (a). 

TITLE IV—PROCUREMENT 

SEC. 401. ELIGIBLE PRODUCTS. 

Section 308(4)(A) of the Trade Agreements Act of 1979 (19 

U.S.C. 2518(4)(A)) is amended— 

(1) by striking ‘‘or’’ at the end of clause (vi); 

(2) by striking the period at the end of clause (vii) and 

inserting ‘‘; or’’; and 

(3) by adding at the end the following new clause: 

‘‘(viii) a party to the United States–Korea Free 

Trade Agreement, a product or service of that country 

or instrumentality which is covered under that agreement for procurement by the United States.’’. 

TITLE V—OFFSETS 

SEC. 501. INCREASE IN PENALTY ON PAID PREPARERS WHO FAIL TO 

COMPLY WITH EARNED INCOME TAX CREDIT DUE DILIGENCE REQUIREMENTS. 

(a) IN GENERAL.—Section 6695(g) of the Internal Revenue Code 

of 1986 is amended by striking ‘‘$100’’ and inserting ‘‘$500’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to returns required to be filed after December 31, 

2011. 

26 USC 6695. 

Reports. 


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125 STAT. 460 PUBLIC LAW 112–41—OCT. 21, 2011 

SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE UNITED 

STATES TO PROVIDE INFORMATION FOR TAX ADMINISTRATION. 

(a) IN GENERAL.—Subchapter B of chapter 61 of the Internal 

Revenue Code of 1986 is amended by redesignating section 6116 

as section 6117 and by inserting after section 6115 the following 

new section: 

‘‘SEC. 6116. REQUIREMENT FOR PRISONS LOCATED IN UNITED STATES 

TO PROVIDE INFORMATION FOR TAX ADMINISTRATION. 

‘‘(a) IN GENERAL.—Not later than September 15, 2012, and 

annually thereafter, the head of the Federal Bureau of Prisons 

and the head of any State agency charged with the responsibility 

for administration of prisons shall provide to the Secretary in 

electronic format a list with the information described in subsection 

(b) of all the inmates incarcerated within the prison system for 

any part of the prior 2 calendar years or the current calendar 

year through August 31. 

‘‘(b) INFORMATION.—The information with respect to each 

inmate is— 

‘‘(1) first, middle, and last name, 

‘‘(2) date of birth, 

‘‘(3) institution of current incarceration or, for released 

inmates, most recent incarceration, 

‘‘(4) prison assigned inmate number, 

‘‘(5) the date of incarceration, 

‘‘(6) the date of release or anticipated date of release, 

‘‘(7) the date of work release, 

‘‘(8) taxpayer identification number and whether the prison 

has verified such number, 

‘‘(9) last known address, and 

‘‘(10) any additional information as the Secretary may 

request. 

‘‘(c) FORMAT.—The Secretary shall determine the electronic format of the information described in subsection (b).’’. 

(b) CLERICAL AMENDMENT.—The table of sections for such subchapter is amended by striking the item relating to section 6116 

and by adding at the end the following new items: 

‘‘Sec. 6116. Requirement for prisons located in United States to provide information 

for tax administration. 

‘‘Sec. 6117. Cross reference.’’. 

SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES. 

For the period beginning on December 1, 2015, and ending 

on June 30, 2021, section 13031(a)(9) of the Consolidated Omnibus 

Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be 

applied and administered— 

(1) in subparagraph (A), by substituting ‘‘0.3464’’ for ‘‘0.21’’; 

and 

(2) in subparagraph (B)(i), by substituting ‘‘0.3464’’ for 

‘‘0.21’’. 

SEC. 504. EXTENSION OF CUSTOMS USER FEES. 

(a) IN GENERAL.—Section 13031(j)(3)(A) of the Consolidated 

Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) 

is amended by striking ‘‘January 7, 2020’’ and inserting ‘‘August 

2, 2021’’. 

Time period. 

Applicability. 

Deadline. 

Lists. 

Time period. 

26 USC 6116. 

26 USC 6117. 


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PUBLIC LAW 112–41—OCT. 21, 2011 125 STAT. 461 

LEGISLATIVE HISTORY—H.R. 3080 (S. 1642): 

HOUSE REPORTS: No. 112–239 (Comm. on Ways and Means). 

CONGRESSIONAL RECORD, Vol. 157 (2011): 

Oct. 11, considered in House. 

Oct. 12, considered and passed House and Senate. 

Æ 

(b) OTHER FEES.—Section 13031(j)(3)(B)(i) of the Consolidated 

Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i)) 

is amended by striking ‘‘January 14, 2020’’ and inserting ‘‘December 

8, 2020’’. 

SEC. 505. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 

Notwithstanding section 6655 of the Internal Revenue Code 

of 1986, in the case of a corporation with assets of not less than 

$1,000,000,000 (determined as of the end of the preceding taxable 

year)— 

(1) the amount of any required installment of corporate 

estimated tax which is otherwise due in July, August, or September of 2012 shall be increased by 0.25 percent of such 

amount (determined without regard to any increase in such 

amount not contained in such Code); 

(2) the amount of any required installment of corporate 

estimated tax which is otherwise due in July, August, or September of 2016 shall be increased by 2.75 percent of such 

amount (determined without regard to any increase in such 

amount not contained in such Code); and 

(3) the amount of the next required installment after an 

installment referred to in paragraph (1) or (2) shall be appropriately reduced to reflect the amount of the increase by reason 

of such paragraph. 

Approved October 21, 2011. 


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