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[112th Congress Public Law 41]
[From the U.S. Government Printing Office]

[[Page 427]]

       UNITED STATES-KOREA FREE TRADE AGREEMENT IMPLEMENTATION ACT

[[Page 125 STAT. 428]]

Public Law 112-41
112th Congress

                                 An Act

 
To implement the United States-Korea Free Trade Agreement. <<NOTE: Oct. 
                       21, 2011 -  [H.R. 3080]>> 

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

[[Page 125 STAT. 429]]

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)).

[[Page 125 STAT. 430]]

 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 <<NOTE: President.>>  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

[[Page 125 STAT. 431]]

            (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 <<NOTE: Deadlines.>>  Regulations.--Initial regulations 
necessary or appropriate to carry out the actions required by or 
authorized under this Act or proposed in the statement of administrative 
action submitted under section 101(a)(2) to implement the Agreement 
shall, to the maximum extent feasible, be issued within 1 year after the 
date on which the Agreement enters into force. In the case of any 
implementing action that takes effect on a date after the date on which 
the Agreement enters into force, initial regulations to carry out that 
action shall, to the maximum extent feasible, be issued within 1 year 
after such effective date.
SEC. 104. <<NOTE: President.>> 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) <<NOTE: Reports.>> the President has submitted to the 
        Committee on Finance of the Senate and the Committee on Ways and 
        Means of the House of Representatives a report that sets forth--

[[Page 125 STAT. 432]]

                    (A) the action proposed to be proclaimed and the 
                reasons therefor; and
                    (B) the advice obtained under paragraph (1);
            (3) <<NOTE: Time period.>> 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 <<NOTE: President.>>  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 <<NOTE: Applicability.>> 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

[[Page 125 STAT. 433]]

            (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.

[[Page 125 STAT. 434]]

            (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 <<NOTE: Records.>> 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.--

[[Page 125 STAT. 435]]

                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                build-down method:

                         AV-VNM                   ......................
RVC =                    ----------               <dbl-dagger> 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 
                build-up method:

                         VOM                      ......................
RVC =                    ----------               <dbl-dagger> 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 =                    ----------               <dbl-dagger> 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

[[Page 125 STAT. 436]]

                      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 value-
                                content 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

[[Page 125 STAT. 437]]

                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

[[Page 125 STAT. 438]]

                      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:

[[Page 125 STAT. 439]]

                    (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.

[[Page 125 STAT. 440]]

                    (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.--

[[Page 125 STAT. 441]]

            (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) <<NOTE: Applicability.>>  Conditions.--Paragraph (1) 
        shall apply only if--
                    (A) the accessories, spare parts, or tools are 
                classified with and not invoiced separately from the 
                good; 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--

[[Page 125 STAT. 442]]

                    (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.

[[Page 125 STAT. 443]]

                    (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

[[Page 125 STAT. 444]]

        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,

[[Page 125 STAT. 445]]

        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

[[Page 125 STAT. 446]]

                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) <<NOTE: Time period.>> 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

[[Page 125 STAT. 447]]

                                    (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 <<NOTE: Deadline.>>  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) <<NOTE: Deadline.>>  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:

[[Page 125 STAT. 448]]

    ``(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 <<NOTE: Regulations.>>  
        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 <<NOTE: Applicability.>> 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 <<NOTE: Notice.>> 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:

[[Page 125 STAT. 449]]

    ``(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 <<NOTE: Regulations. Records.>>  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

[[Page 125 STAT. 450]]

        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

[[Page 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:

[[Page 125 STAT. 452]]

            (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.

[[Page 125 STAT. 453]]

SEC. 312. COMMISSION ACTION ON PETITION.

    (a) <<NOTE: Deadline.>>  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.

[[Page 125 STAT. 454]]

SEC. 313. PROVISION OF RELIEF.

    (a) <<NOTE: Deadline. President.>>  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.--

[[Page 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) <<NOTE: Deadlines.>>  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) <<NOTE: Federal Register, publication.>>  
                      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) <<NOTE: Effective date.>>  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

[[Page 125 STAT. 456]]

            (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 <<NOTE: Applicability.>> 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.''.

[[Page 125 STAT. 457]]

           Subtitle C--Textile and Apparel Safeguard Measures

SEC. 331. <<NOTE: President.>> COMMENCEMENT OF ACTION FOR RELIEF.

    (a) In <<NOTE: Review.>> 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 <<NOTE: Federal Register, 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. <<NOTE: President.>> 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--

[[Page 125 STAT. 458]]

                          (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

[[Page 125 STAT. 459]]

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 <<NOTE: Reports.>>  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 <<NOTE: 26 USC 6695.>>  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.

[[Page 125 STAT. 460]]

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 <<NOTE: 26 USC 6117.>> and by inserting after section 6115 the 
following new section:
``SEC. 6116. <<NOTE: 26 USC 6116.>> REQUIREMENT FOR PRISONS 
                          LOCATED IN UNITED STATES TO PROVIDE 
                          INFORMATION FOR TAX ADMINISTRATION.

    ``(a) In <<NOTE: Deadline. Lists. Time period.>> 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. <<NOTE: Time period. Applicability.>> 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''.

[[Page 125 STAT. 461]]

    (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.

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.

                                  <all>
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