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[112th Congress Public Law 43]
[From the U.S. Government Printing Office]

[[Page 125 STAT. 497]]

Public Law 112-43
112th Congress

                                 An Act

 
         To implement the United States-Panama Trade Promotion 
           Agreement. <<NOTE: Oct. 21, 2011 -  [H.R. 3079]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: United States-
Panama Trade Promotion Agreement Implementation Act. 19 USC 3805 
note.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States-
Panama Trade Promotion Agreement Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

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

Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and 
           initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date 
           of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.

                      TITLE II--CUSTOMS PROVISIONS

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

Sec. 321. Commencement of action for relief.

[[Page 125 STAT. 498]]

Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.

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

Sec. 331. Findings and action on Panamanian articles.

                         TITLE IV--MISCELLANEOUS

Sec. 401. Eligible products.
Sec. 402. Modification to the Caribbean Basin Economic Recovery Act.

                            TITLE V--OFFSETS

Sec. 501. Extension of customs user fees.
Sec. 502. 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 Panama entered into under the 
        authority of section 2103(b) of the Bipartisan Trade Promotion 
        Authority Act of 2002 (19 U.S.C. 3803(b));
            (2) to strengthen and develop economic relations between the 
        United States and Panama for their mutual benefit;
            (3) to establish free trade between the United States and 
        Panama through the reduction and elimination of barriers to 
        trade in goods and services and to investment; and
            (4) to lay the foundation for further cooperation to expand 
        and enhance the benefits of the Agreement.
SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agreement.--The term ``Agreement'' means the United 
        States-Panama Trade Promotion 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) Textile or apparel good.--The term ``textile or apparel 
        good'' means a good listed in the Annex to the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other than 
        a good listed in Annex 3.30 of the Agreement.

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

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

    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority Act 
of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 (19 
U.S.C. 2191), Congress approves--

[[Page 125 STAT. 499]]

            (1) the United States-Panama Trade Promotion Agreement 
        entered into on June 28, 2007, with the Government of Panama and 
        submitted to Congress on October 3, 2011; and
            (2) the statement of administrative action proposed to 
        implement the Agreement that was submitted to Congress on 
        October 3, 2011.

    (b) Conditions for Entry Into Force of the Agreement.--At such time 
as the President determines that Panama 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 Panama 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
            (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

[[Page 125 STAT. 500]]

                    (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 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) the <<NOTE: Reports.>> President has submitted to the 
        Committee on Finance of the Senate and the Committee on Ways and 
        Means of the House of Representatives a report that sets forth--
                    (A) the action proposed to be proclaimed and the 
                reasons therefor; and
                    (B) the advice obtained under paragraph (1);
            (3) a <<NOTE: Time period.>> 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).

[[Page 125 STAT. 501]]

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 20 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 $150,000 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 20 of the Agreement.
SEC. 106. ARBITRATION OF CLAIMS.

    The United States is authorized to resolve any claim against the 
United States covered by article 10.16.1(a)(i)(C) or article 
10.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 
Dispute Settlement procedures set forth in section B of chapter 10 of 
the Agreement.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), 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, 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 204, 205, 207, and 
        401 of this Act take effect on the date of the enactment of this 
        Act and apply with respect to Panama 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 <<NOTE: President.>> Modifications Provided for in the 
Agreement.--
            (1) Proclamation authority.--The President may proclaim--
                    (A) such modifications or continuation of any duty,
                    (B) such continuation of duty-free or excise 
                treatment, or
                    (C) such additional duties,
        as the President determines to be necessary or appropriate to 
        carry out or apply articles 3.3, 3.5, 3.6, 3.26, 3.27, 3.28, and 
        3.29, and Annex 3.3, of the Agreement.
            (2) Effect on gsp status.--Notwithstanding section 502(a)(1) 
        of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the President 
        shall, on the date on which the Agreement enters into force, 
        terminate the designation of Panama as a beneficiary

[[Page 125 STAT. 502]]

        developing country for purposes of title V of the Trade Act of 
        1974 (19 U.S.C. 2461 et seq.).
            (3) Effect on cbera status.--
                    (A) In general.--Notwithstanding section 212(a) of 
                the Caribbean Basin Economic Recovery Act (19 U.S.C. 
                2702(a)), the President shall, on the date on which the 
                Agreement enters into force, terminate the designation 
                of Panama as a beneficiary country for purposes of that 
                Act.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                Panama shall be considered a beneficiary country under 
                section 212(a) of the Caribbean Basin Economic Recovery 
                Act, for purposes of--
                          (i) sections 771(7)(G)(ii)(III) and 771(7)(H) 
                      of the Tariff Act of 1930 (19 U.S.C. 
                      1677(7)(G)(ii)(III) and 1677(7)(H));
                          (ii) the duty-free treatment provided under 
                      paragraph 4 of the General Notes to the Schedule 
                      of the United States to Annex 3.3 of the 
                      Agreement; and
                          (iii) section 274(h)(6)(B) of the Internal 
                      Revenue Code of 1986.

    (b) Other Tariff Modifications.--Subject to the consultation and 
layover provisions of section 104, the President may proclaim--
            (1) such modifications or continuation of any duty,
            (2) such modifications as the United States may agree to 
        with Panama regarding the staging of any duty treatment set 
        forth in Annex 3.3 of the Agreement,
            (3) such continuation of duty-free or excise treatment, or
            (4) such additional duties,

as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Panama provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections (a) 
and (b), with respect to any good for which the base rate in the 
Schedule of the United States to Annex 3.3 of the Agreement is a 
specific or compound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President determines to be 
equivalent to the base rate.
    (d) Tariff <<NOTE: President.>> Rate Quotas.--In implementing the 
tariff rate quotas set forth in Appendix I to the General Notes to the 
Schedule of the United States to Annex 3.3 of the Agreement, the 
President shall take such action as may be necessary to ensure that 
imports of agricultural goods do not disrupt the orderly marketing of 
commodities in the United States.
SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

    (a) Definitions.--In this section:
            (1) Applicable ntr (mfn) rate of duty.--The term 
        ``applicable NTR (MFN) rate of duty'' means, with respect to a 
        safeguard good, a rate of duty equal to the lowest of--
                    (A) the base rate in the Schedule of the United 
                States to Annex 3.3 of the Agreement;
                    (B) the column 1 general rate of duty that would, on 
                the day before the date on which the Agreement enters 
                into force, apply to a good classifiable in the same 8-
                digit subheading of the HTS as the safeguard good; or
                    (C) the column 1 general rate of duty that would, at 
                the time the additional duty is imposed under subsection

[[Page 125 STAT. 503]]

                (b), apply to a good classifiable in the same 8-digit 
                subheading of the HTS as the safeguard good.
            (2) Safeguard good.--The term ``safeguard good'' means a 
        good--
                    (A) that is included in the Schedule of the United 
                States to Annex 3.17 of the Agreement;
                    (B) that qualifies as an originating good under 
                section 203; and
                    (C) for which a claim for preferential tariff 
                treatment under the Agreement has been made.
            (3) Schedule rate of duty.--The term ``schedule rate of 
        duty'' means, with respect to a safeguard good, the rate of duty 
        for that good that is set forth in the Schedule of the United 
        States to Annex 3.3 of the Agreement.
            (4) Trigger level.--
                    (A) In general.--The term ``trigger level'' means--
                          (i) in the case of a safeguard good classified 
                      under subheading 0201.10.50, 0201.20.80, 
                      0201.30.80, 0202.10.50, 0202.20.80, or 0202.30.80 
                      of the HTS--
                                    (I) in year 1 of the Agreement, 330 
                                metric tons; and
                                    (II) in year 2 of the Agreement 
                                through year 14 of the Agreement, a 
                                quantity equal to 110 percent of the 
                                trigger level for that safeguard good 
                                for the preceding calendar year; and
                          (ii) in the case of any other safeguard good, 
                      115 percent of the quantity that is provided for 
                      that safeguard good in the corresponding calendar 
                      year in the applicable table contained in Appendix 
                      I to the General Notes to the Schedule of the 
                      United States to Annex 3.3 of the Agreement.
                    (B) Relationship to table.--For purposes of 
                subparagraph (A)(ii), year 1 in the applicable table 
                contained in Appendix I to the General Notes to the 
                Schedule of the United States to Annex 3.3 of the 
                Agreement corresponds to year 1 of the Agreement.
            (5) Year 1 of the agreement.--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.
            (6) Years other than year 1 of the agreement.--Any reference 
        to a year of the Agreement subsequent to year 1 of the Agreement 
        shall be deemed to be a reference to the corresponding calendar 
        year in which the Agreement is in force.

    (b) Additional Duties on Safeguard Goods.--
            (1) In general.--In addition to any duty proclaimed under 
        subsection (a) or (b) of section 201, the Secretary of the 
        Treasury shall assess a duty, in the amount determined under 
        paragraph (2), on a safeguard good imported into the United 
        States in a calendar year if the Secretary determines that, 
        prior to such importation, the total volume of that safeguard 
        good that is imported into the United States in that calendar 
        year exceeds the trigger level for that good for that calendar 
        year.
            (2) Calculation of additional duty.--The additional duty on 
        a safeguard good under this subsection shall be--

[[Page 125 STAT. 504]]

                    (A) in the case of a good classified under 
                subheading 0201.10.50, 0201.20.80, 0201.30.80, 
                0202.10.50, 0202.20.80, or 0202.30.80 of the HTS--
                          (i) in year 1 of the Agreement through year 6 
                      of the Agreement, an amount equal to 100 percent 
                      of the excess of the applicable NTR (MFN) rate of 
                      duty over the schedule rate of duty; and
                          (ii) in year 7 of the Agreement through year 
                      14 of the Agreement, an amount equal to 50 percent 
                      of the excess of the applicable NTR (MFN) rate of 
                      duty over the schedule rate of duty;
                    (B) in the case of a good classified under 
                subheading 0406.10.08, 0406.10.88, 0406.20.91, 
                0406.30.91, 0406.90.97, or 2105.00.20 of the HTS--
                          (i) in year 1 of the Agreement through year 11 
                      of the Agreement, an amount equal to 100 percent 
                      of the excess of the applicable NTR (MFN) rate of 
                      duty over the schedule rate of duty; and
                          (ii) in year 12 of the Agreement through year 
                      14 of the Agreement, an amount equal to 50 percent 
                      of the excess of the applicable NTR (MFN) rate of 
                      duty over the schedule rate of duty; and
                    (C) in the case of any other safeguard good--
                          (i) in year 1 of the Agreement through year 13 
                      of the Agreement, an amount equal to 100 percent 
                      of the excess of the applicable NTR (MFN) rate of 
                      duty over the schedule rate of duty; and
                          (ii) in year 14 of the Agreement through year 
                      16 of the Agreement, an amount equal to 50 percent 
                      of the excess of the applicable NTR (MFN) rate of 
                      duty over the schedule rate of duty.
            (3) Notice.--Not <<NOTE: Deadline.>> later than 60 days 
        after the date on which the Secretary of the Treasury first 
        assesses an additional duty in a calendar year on a good under 
        this subsection, the Secretary shall notify the Government of 
        Panama in writing of such action and shall provide to that 
        Government data supporting the assessment of the additional 
        duty.

    (c) Exceptions.--No additional duty shall be assessed on a good 
under subsection (b) if, at the time of entry, the good is subject to 
import relief under--
            (1) subtitle A of title III of this Act; or
            (2) chapter 1 of title II of the Trade Act of 1974 (19 
        U.S.C. 2251 et seq.).

    (d) Termination.--The assessment of an additional duty on a good 
under subsection (b) shall cease to apply to that good on the date on 
which duty-free treatment must be provided to that good under the 
Schedule of the United States to Annex 3.3 of the Agreement.
SEC. 203. RULES OF ORIGIN.

    (a) Application and Interpretation.--In this section:
            (1) Tariff classification.--The basis for any tariff 
        classification is the HTS.
            (2) Reference to hts.--Whenever in this section there is a 
        reference to a chapter, heading, or subheading, such reference 
        shall be a reference to a chapter, heading, or subheading of the 
        HTS.

[[Page 125 STAT. 505]]

            (3) Cost or value.--Any cost or value referred to in this 
        section shall be recorded and maintained in accordance with the 
        generally accepted accounting principles applicable in the 
        territory of the country in which the good is produced (whether 
        Panama 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 Panama, the United States, or both;
            (2) the good--
                    (A) is produced entirely in the territory of Panama, 
                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 4.1 of the Agreement; or
                          (ii) the good otherwise satisfies any 
                      applicable regional value-content or other 
                      requirements specified in Annex 4.1 of the 
                      Agreement; and
                    (B) satisfies all other applicable requirements of 
                this section; or
            (3) the good is produced entirely in the territory of 
        Panama, 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 4.1 of the 
        Agreement, except for goods to which paragraph (4) applies, 
        shall be calculated by the importer, exporter, or producer of 
        the good, on the basis of the build-down method described in 
        paragraph (2) or the build-up method described in paragraph (3).
            (2) Build-down method.--
                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                build-down method:

                         AV-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 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.

[[Page 125 STAT. 506]]

            (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 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 4.1 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 that are acquired and 
                      used by the producer in the production of the 
                      automotive good, but does not include the value of 
                      a material that is self-produced.
                    (C) Motor vehicles.--
                          (i) Basis of calculation.--For purposes of 
                      determining the regional value-content under 
                      subparagraph (A) for an automotive good that is a 
                      motor vehicle provided for in any of headings 8701 
                      through 8705, an importer, exporter, or producer 
                      may average the amounts calculated under the 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 Panama or 
                                the United States.

[[Page 125 STAT. 507]]

                          (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 Panama 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 Panama 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 Panama 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 Panama 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 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

[[Page 125 STAT. 508]]

                      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 within or between the territory of 
                      Panama, 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 Panama, 
                      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

[[Page 125 STAT. 509]]

                      within or between the territory of Panama, 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 Panama, 
                      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 Panama, 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 
        Panama 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 Panama, 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 4.1 of the Agreement is an 
        originating good if--
                    (A) the value of all nonoriginating materials that--
                          (i) are used in the production of the good, 
                      and
                          (ii) do not undergo the applicable change in 
                      tariff classification (set forth in Annex 4.1 of 
                      the Agreement),
                does not exceed 10 percent of the adjusted value of the 
                good;
                    (B) the good meets all other applicable requirements 
                of this section; and
                    (C) the value of such nonoriginating materials is 
                included in the value of nonoriginating materials for 
                any applicable regional value-content requirement for 
                the good.
            (2) Exceptions.--Paragraph (1) does not apply to the 
        following:
                    (A) A nonoriginating material provided for in 
                chapter 4, or a nonoriginating dairy preparation 
                containing over 10 percent by weight of milk solids 
                provided for in subheading 1901.90 or 2106.90, that is 
                used in the production of a good provided for in chapter 
                4.
                    (B) A nonoriginating material provided for in 
                chapter 4, or a nonoriginating dairy preparation 
                containing over 10 percent by weight of milk solids 
                provided for in subheading 1901.90, that is used in the 
                production of the following goods:
                          (i) Infant preparations containing over 10 
                      percent by weight of milk solids provided for in 
                      subheading 1901.10.

[[Page 125 STAT. 510]]

                          (ii) Mixes and doughs, containing over 25 
                      percent by weight of butterfat, not put up for 
                      retail sale, provided for in subheading 1901.20.
                          (iii) Dairy preparations containing over 10 
                      percent by weight of milk solids provided for in 
                      subheading 1901.90 or 2106.90.
                          (iv) Goods provided for in heading 2105.
                          (v) Beverages containing milk provided for in 
                      subheading 2202.90.
                          (vi) Animal feeds containing over 10 percent 
                      by weight of milk solids provided for in 
                      subheading 2309.90.
                    (C) A nonoriginating material provided for in 
                heading 0805, or any of subheadings 2009.11 through 
                2009.39, that is used in the production of a good 
                provided for in any of subheadings 2009.11 through 
                2009.39, or in fruit or vegetable juice of any single 
                fruit or vegetable, fortified with minerals or vitamins, 
                concentrated or unconcentrated, provided for in 
                subheading 2106.90 or 2202.90.
                    (D) A nonoriginating material provided for in 
                heading 0901 or 2101 that is used in the production of a 
                good provided for in heading 0901 or 2101.
                    (E) A nonoriginating material provided for in 
                heading 1006 that is used in the production of a good 
                provided for in heading 1102 or 1103 or subheading 
                1904.90.
                    (F) A nonoriginating material provided for in 
                chapter 15 that is used in the production of a good 
                provided for in chapter 15.
                    (G) A nonoriginating material provided for in 
                heading 1701 that is used in the production of a good 
                provided for in any of headings 1701 through 1703.
                    (H) A nonoriginating material provided for in 
                chapter 17 that is used in the production of a good 
                provided for in subheading 1806.10.
                    (I) Except as provided in subparagraphs (A) through 
                (H) and Annex 4.1 of the Agreement, a nonoriginating 
                material used in the production of a good provided for 
                in any of chapters 1 through 24, unless the 
                nonoriginating material is provided for in a different 
                subheading than the good for which origin is being 
                determined under this section.
            (3) Textile or apparel goods.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a textile or apparel good that is not an 
                originating good because certain fibers or yarns used in 
                the production of the component of the good that 
                determines the tariff classification of the good do not 
                undergo an applicable change in tariff classification, 
                set forth in Annex 4.1 of the Agreement, shall be 
                considered to be an originating good if--
                          (i) the total weight of all such fibers or 
                      yarns in that component is not more than 10 
                      percent of the total weight of that component; or
                          (ii) the yarns are those described in section 
                      204(b)(3)(B)(vi)(IV) of the Andean Trade 
                      Preference Act (19 U.S.C. 3203(b)(3)(B)(vi)(IV)) 
                      (as in effect on February 12, 2011).

[[Page 125 STAT. 511]]

                    (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 Panama, the United 
                States, or both.
                    (C) Fabric, yarn, or fiber.--For purposes of this 
                paragraph, in the case of a good that is a fabric, yarn, 
                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 Panama 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.--
            (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 4.1 of the Agreement.
            (2) Conditions.--Paragraph (1) shall apply only if--
                    (A) the accessories, spare parts, or tools are 
                classified with and not invoiced separately from the 
                good, regardless of whether such accessories, spare 
                parts, or tools are specified or are separately 
                identified in the invoice for the good; and
                    (B) the quantities and value of the accessories, 
                spare parts, or tools are customary for the good.
            (3) Regional value-content.--If the good is subject to a 
        regional value-content requirement, the value of the 
        accessories, spare parts, or tools shall be taken into account 
        as

[[Page 125 STAT. 512]]

        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 4.1 of the Agreement, and, if the good is subject to a regional 
value-content requirement, the value of such packaging materials and 
containers shall be taken into account as originating or nonoriginating 
materials, as the case may be, in calculating the regional value-content 
of the good.
    (j) Packing Materials and Containers for Shipment.--Packing 
materials and containers for shipment shall be disregarded in 
determining whether a good is an originating good.
    (k) Indirect Materials.--An indirect material shall be treated as an 
originating material without regard to where it is produced.
    (l) Transit and Transhipment.--A good that has undergone production 
necessary to qualify as an originating good under subsection (b) shall 
not be considered to be an originating good if, subsequent to that 
production, the good--
            (1) undergoes further production or any other operation 
        outside the territory of Panama 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 Panama or the United States; or
            (2) does not remain under the control of customs authorities 
        in the territory of a country other than Panama or the United 
        States.

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

[[Page 125 STAT. 513]]

                    (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 Panama 
                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 panama, the united states, or both.--The term 
        ``good wholly obtained or produced entirely in the territory of 
        Panama, the United States, or both'' means any of the following:
                    (A) Plants and plant products harvested or gathered 
                in the territory of Panama, the United States, or both.
                    (B) Live animals born and raised in the territory of 
                Panama, the United States, or both.
                    (C) Goods obtained in the territory of Panama, the 
                United States, or both from live animals.
                    (D) Goods obtained from hunting, trapping, fishing, 
                or aquaculture conducted in the territory of Panama, 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 Panama, the 
                United States, or both.
                    (F) Fish, shellfish, and other marine life taken 
                from the sea, seabed, or subsoil outside the territory 
                of Panama or the United States by--
                          (i) a vessel that is registered or recorded 
                      with Panama and flying the flag of Panama; 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--

[[Page 125 STAT. 514]]

                          (i) is registered or recorded with Panama and 
                      flies the flag of Panama; or
                          (ii) is a vessel that is documented under the 
                      laws of the United States.
                    (H)(i) Goods taken by Panama or a person of Panama 
                from the seabed or subsoil outside the territorial 
                waters of Panama, if Panama has rights to exploit such 
                seabed or subsoil.
                    (ii) Goods taken by the United States or a person of 
                the United States from the seabed or subsoil outside the 
                territorial waters of the United States, if the United 
                States has rights to exploit such seabed or subsoil.
                    (I) Goods taken from outer space, if the goods are 
                obtained by Panama or the United States or a person of 
                Panama or the United States and not processed in the 
                territory of a country other than Panama or the United 
                States.
                    (J) Waste and scrap derived from--
                          (i) manufacturing or processing operations in 
                      the territory of Panama, the United States, or 
                      both; or
                          (ii) used goods collected in the territory of 
                      Panama, 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 
                Panama, the United States, or both from used goods, and 
                used in the territory of Panama, the United States, or 
                both, in the production of remanufactured goods.
                    (L) Goods, at any stage of production, produced in 
                the territory of Panama, 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 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

[[Page 125 STAT. 515]]

                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 nonallowable 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 3.10.4 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 Panama 
        or the United States.
            (17) Production.--The term ``production'' means growing, 
        mining, harvesting, fishing, raising, trapping, 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, other than a good classified under heading 8418 
        or 8516, and that--
                    (A) is entirely or partially comprised of recovered 
                goods; and

[[Page 125 STAT. 516]]

                    (B) has a similar life expectancy and enjoys a 
                factory warranty similar to such a good that is new.
            (21) Total cost.--The term ``total cost'' means all product 
        costs, period costs, and other costs for a good incurred in the 
        territory of Panama, the United States, or both.
            (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 4.1 of the 
                Agreement; and
                    (B) any additional subordinate category that is 
                necessary to carry out this title consistent with the 
                Agreement.
            (2) Fabrics, yarns, or fibers not available in commercial 
        quantities in the united states.--The President is authorized to 
        proclaim that a fabric, yarn, or fiber is added to the list in 
        Annex 3.25 of the Agreement in an unrestricted quantity, as 
        provided in article 3.25.4(e) of the Agreement.
            (3) Modifications.--
                    (A) In general.--Subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim modifications to the provisions proclaimed 
                under the authority of paragraph (1)(A), other than 
                provisions of chapters 50 through 63 (as included in 
                Annex 4.1 of the Agreement).
                    (B) Additional proclamations.--Notwithstanding 
                subparagraph (A), and subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim before the end of the 1-year period beginning 
                on the date 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 4.1 of the Agreement).
            (4) Fabrics, yarns, or fibers not available in commercial 
        quantities in panama and the united states.--
                    (A) In general.--Notwithstanding paragraph (3)(A), 
                the list of fabrics, yarns, and fibers set forth in 
                Annex 3.25 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 Panama, 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 fabrics, yarns, or fibers.--
                          (i) In general.--An interested entity may 
                      request the President to determine that a fabric, 
                      yarn, or fiber is not available in commercial 
                      quantities in a timely manner in Panama and the 
                      United States and to add that fabric, yarn, or 
                      fiber to the list in Annex 3.25 of the Agreement 
                      in a restricted or unrestricted quantity.

[[Page 125 STAT. 517]]

                          (ii) Determinations.--After receiving a 
                      request under clause (i), the President may 
                      determine whether--
                                    (I) the fabric, yarn, or fiber is 
                                available in commercial quantities in a 
                                timely manner in Panama or 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 fabric, yarn, or fiber 
                      that is the subject of the request is added to the 
                      list in Annex 3.25 of the Agreement in an 
                      unrestricted quantity, or in any restricted 
                      quantity that the President may establish, if the 
                      President has determined under clause (ii) that--
                                    (I) the fabric, yarn, or fiber is 
                                not available in commercial quantities 
                                in a timely manner in Panama and the 
                                United States; or
                                    (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 44 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.
                          (vi) Elimination of restriction.--
                      Not <<NOTE: Deadline.>> later than 6 months after 
                      proclaiming under clause (iii) that a fabric, 
                      yarn, or fiber is added to the list in Annex 3.25 
                      of the Agreement in a restricted quantity, the 
                      President may eliminate the restriction if the 
                      President determines that the fabric, yarn, or 
                      fiber is not available in commercial quantities in 
                      a timely manner in Panama and the United States.
                    (D) Deemed <<NOTE: Time periods.>> approval of 
                request.--If, after an interested entity submits a 
                request under subparagraph (C)(i), the President does 
                not, within the applicable time period specified in 
                subparagraph (C)(iv), make a determination under 
                subparagraph (C)(ii) regarding the request, the fabric, 
                yarn, or fiber that is the subject of the request shall 
                be considered to be added, in an unrestricted quantity, 
                to the list in Annex 3.25 of the Agreement beginning--
                          (i) 45 days after the date on which the 
                      request is submitted; or
                          (ii) 60 days after the date on which the 
                      request is submitted, if the President made a 
                      determination under subparagraph (C)(iv)(II).

[[Page 125 STAT. 518]]

                    (E) Requests to restrict or remove fabrics, yarns, 
                or fibers.--
                          (i) In general.--Subject to clause (ii), an 
                      interested entity may request the President to 
                      restrict the quantity of, or remove from the list 
                      in Annex 3.25 of the Agreement, any fabric, yarn, 
                      or fiber--
                                    (I) that has been added to that list 
                                in an unrestricted quantity pursuant to 
                                paragraph (2) or subparagraph (C)(iii) 
                                or (D) of this paragraph; or
                                    (II) with respect to which the 
                                President has eliminated a restriction 
                                under subparagraph (C)(vi).
                          (ii) Time period for submission.--An 
                      interested entity may submit a request under 
                      clause (i) at any time beginning on the date that 
                      is 6 months after the date of the action described 
                      in subclause (I) or (II) of that clause.
                          (iii) 
                      Proclamation <<NOTE: Deadline.>> authority.--Not 
                      later than 30 days after the date on which a 
                      request under clause (i) is submitted, the 
                      President may proclaim an action provided for 
                      under clause (i) if the President determines that 
                      the fabric, yarn, or fiber that is the subject of 
                      the request is available in commercial quantities 
                      in a timely manner in Panama or the United States.
                          (iv) Effective date.--A proclamation issued 
                      under clause (iii) 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 <<NOTE: President.>> 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 (vi) 
                      or (E)(iii).
SEC. 204. CUSTOMS USER FEES.

    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph (20) 
the following:
    ``(21) No fee may be charged under subsection (a)(9) or (10) with 
respect to goods that qualify as originating goods under section 203 of 
the United States-Panama Trade Promotion Agreement Implementation Act. 
Any service for which an exemption from such fee is provided by reason 
of this paragraph may not be funded with money contained in the Customs 
User Fee Account.''.
SEC. 205. 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 (13) as paragraph 
                (14); and

[[Page 125 STAT. 519]]

                    (B) by inserting after paragraph (12) the following 
                new paragraph:
            ``(13) Prior disclosure regarding claims under the united 
        states-panama trade promotion agreement.--An importer shall not 
        be subject to penalties under subsection (a) for making an 
        incorrect claim that a good qualifies as an originating good 
        under section 203 of the United States-Panama Trade Promotion 
        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:

    ``(l) False Certifications of Origin Under the United States-Panama 
Trade Promotion 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 Panama TPA 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 203 of the United 
        States-Panama Trade Promotion <<NOTE: Applicability.>> Agreement 
        Implementation Act. The procedures and penalties of this section 
        that apply to a violation of subsection (a) also apply to a 
        violation of this subsection.
            ``(2) Prompt and voluntary disclosure of incorrect 
        information.--No penalty shall be imposed under this subsection 
        if, promptly after an exporter or producer that issued a Panama 
        TPA 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 Panama TPA 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:
    ``(l) Denial of Preferential Tariff Treatment Under the United 
States-Panama Trade Promotion 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 203 
of the United States-Panama Trade Promotion 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-Panama Trade Promotion Agreement to 
entries of identical goods covered by subsequent representations by that 
importer, exporter, or producer until U.S.

[[Page 125 STAT. 520]]

Customs and Border Protection determines that representations of that 
person are in conformity with such section 203.''.
SEC. 206. 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 
        203 of the United States-Panama Trade Promotion Agreement 
        Implementation Act for which''.
SEC. 207. RECORDKEEPING REQUIREMENTS.

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

    ``(k) Certifications of Origin for Goods Exported Under the United 
States-panama Trade Promotion 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) Panama tpa certification of origin.--The term 
                `Panama TPA certification of origin' means the 
                certification established under article 4.15 of the 
                United States-Panama Trade Promotion Agreement that a 
                good qualifies as an originating good under such 
                Agreement.
            ``(2) Exports <<NOTE: Regulations.>> to panama.--Any person 
        who completes and issues a Panama TPA 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 Panama TPA 
        certification of origin shall keep the records and supporting 
        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 (l), as so redesignated, by striking 
        ``(i), or (j)'' and inserting ``(i), (j), or (k)''.
SEC. 208. 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 Panama to conduct a verification pursuant to 
        article 3.21 of the Agreement for purposes of making a 
        determination under paragraph (2), the President may direct

[[Page 125 STAT. 521]]

        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 enterprise in Panama is complying with 
                applicable customs laws, regulations, and procedures 
                regarding trade in textile or apparel goods, or
                    (B) a claim that a textile or apparel good exported 
                or produced by such enterprise--
                          (i) qualifies as an originating good under 
                      section 203, or
                          (ii) is a good of Panama,
                is accurate.

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

[[Page 125 STAT. 522]]

        person has provided incorrect information as to the country of 
        origin of any such good.

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

    (e) Publication of Name of Person.--In accordance with article 
3.21.9 of the Agreement, the Secretary of the Treasury may publish the 
name of any person that the Secretary has determined--
            (1) is engaged in intentional circumvention of applicable 
        laws, regulations, or procedures affecting trade in textile or 
        apparel goods; or
            (2) has failed to demonstrate that it produces, or is 
        capable of producing, the textile or apparel goods that are the 
        subject of a verification under subsection (a)(1).
SEC. 209. REGULATIONS.

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

[[Page 125 STAT. 523]]

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

    In this title:
            (1) Panamanian article.--The term ``Panamanian article'' 
        means an article that qualifies as an originating good under 
        section 203(b).
            (2) Panamanian textile or apparel article.--The term 
        ``Panamanian textile or apparel article'' means a textile or 
        apparel good (as defined in section 3(4)) that is a Panamanian 
        article.

     Subtitle A--Relief From Imports Benefitting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--A petition requesting action under this 
subtitle for the purpose of adjusting to the obligations of the United 
States under the Agreement may be filed with the Commission by an 
entity, including a trade association, firm, certified or recognized 
union, or group of workers, that is representative of an industry. The 
Commission shall transmit a copy of any petition filed under this 
subsection to the United States Trade Representative.
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the Commission, unless subsection (d) applies, 
shall promptly initiate an investigation to determine whether, as a 
result of the reduction or elimination of a duty provided for under the 
Agreement, a Panamanian 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 Panamanian 
article constitute a substantial cause of serious injury or threat 
thereof to the domestic industry producing an article that is like, or 
directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
            (1) Paragraphs (1)(B) and (3) of subsection (b).
            (2) Subsection (c).
            (3) Subsection (i).

    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Panamanian article if, 
after the date on which the Agreement enters into force, import relief 
has been provided with respect to that Panamanian article under this 
subtitle.
SEC. 312. COMMISSION ACTION ON PETITION.

    (a) Determination.--Not <<NOTE: Deadline.>>  later than 120 days 
after the date on which an investigation is initiated under section 
311(b) with respect to a petition, the Commission shall make the 
determination required under that section.

    (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

[[Page 125 STAT. 524]]

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 <<NOTE: Federal Register, publication.>>  
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.
SEC. 313. <<NOTE: President.>> PROVISION OF RELIEF.

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

[[Page 125 STAT. 525]]

relief from imports of the article that is the subject of such 
determination to the extent that the President determines necessary to 
remedy or prevent the injury found by the Commission and to facilitate 
the efforts of the domestic industry to make a positive adjustment to 
import competition.

    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the provision 
of the import relief will not provide greater economic and social 
benefits than costs.
    (c) Nature of Relief.--
            (1) In general.--The import relief that the President is 
        authorized to provide under this section with respect to imports 
        of an article is as follows:
                    (A) The suspension of any further reduction provided 
                for under Annex 3.3 of the Agreement in the duty imposed 
                on 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) 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 8.2.3 of the Agreement) of 
        such relief at regular intervals during the period of its 
        application.

    (d) Period of Relief.--
            (1) In general.--Subject to paragraph (2), any import relief 
        that the President provides under this section may not, in the 
        aggregate, be in effect for more than 4 years.
            (2) Extension.--
                    (A) In general.--If the initial period for any 
                import relief provided under this section is less than 4 
                years, the President, after receiving a determination 
                from the Commission under subparagraph (B) that is 
                affirmative, or which the President considers to be 
                affirmative under paragraph (1) of section 330(d) of the 
                Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), may extend 
                the effective period of any import relief provided under 
                this section, subject to the limitation under paragraph 
                (1), if the President determines that--
                          (i) the import relief continues to be 
                      necessary to remedy or prevent serious injury and 
                      to facilitate adjustment by the domestic industry 
                      to import competition; and
                          (ii) there is evidence that the industry is 
                      making a positive adjustment to import 
                      competition.
                    (B) Action by commission.--
                          (i) 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)

[[Page 125 STAT. 526]]

                      is to terminate, the Commission shall conduct an 
                      investigation to determine whether action under 
                      this section continues to be necessary to remedy 
                      or prevent serious injury and whether there is 
                      evidence that the industry is making a positive 
                      adjustment to import competition.
                          (ii) Notice and <<NOTE: Federal Register, 
                      publication.>>  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.

    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article--
            (1) the rate of duty on that article after such termination 
        and on or before December 31 of the year in which such 
        termination occurs shall be the rate that, according to the 
        Schedule of the United States to Annex 3.3 of the Agreement, 
        would have been in effect 1 year after the provision of relief 
        under subsection (a); and
            (2) the rate of duty for that article after December 31 of 
        the year in which such termination occurs shall be, at the 
        discretion of the President, either--
                    (A) the applicable rate of duty for that article set 
                forth in the Schedule of the United States to Annex 3.3 
                of the Agreement; or
                    (B) the rate of duty resulting from the elimination 
                of the tariff in equal annual stages ending on the date 
                set forth in the Schedule of the United States to Annex 
                3.3 of the Agreement for the elimination of the tariff.

    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on--
            (1) any article that is subject to import relief under--
                    (A) subtitle B; or
                    (B) chapter 1 of title II of the Trade Act of 1974 
                (19 U.S.C. 2251 et seq.); or
            (2) any article on which an additional duty assessed under 
        section 202(b) is in effect.
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 3.3 of the 
Agreement, is greater than 10 years, no relief under this subtitle may 
be provided for that article after the date on which that period ends.

[[Page 125 STAT. 527]]

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-Panama Trade Promotion Agreement 
        Implementation Act''.

           Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. <<NOTE: President.>> COMMENCEMENT OF ACTION FOR RELIEF.

    (a) In General.--A request for action under this subtitle for the 
purpose of adjusting to the obligations of the United States under the 
Agreement may be filed with the President by an interested party. Upon 
the filing of a request, the President shall review the request to 
determine, from information presented in the request, whether to 
commence consideration of the request.
    (b) Publication of <<NOTE: Federal Register, publication. Notice.>>  
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. 322. <<NOTE: President.>> DETERMINATION AND PROVISION OF 
                        RELIEF.

    (a) Determination.--
            (1) In general.--If a positive determination is made under 
        section 321(b), the President shall determine whether, as a 
        result of the elimination of a duty under the Agreement, a 
        Panamanian 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 consumer 
                preference or changes in technology as factors 
                supporting a determination of serious damage or actual 
                threat thereof.
            (3) Deadline for determination.--The President shall make 
        the determination under paragraph (1) not later than

[[Page 125 STAT. 528]]

        30 days after the completion of any consultations held pursuant 
        to article 3.24.4 of the Agreement.

    (b) Provision of Relief.--
            (1) In general.--If a determination under subsection (a) is 
        affirmative, the President may provide relief from imports of 
        the article that is the subject of such determination, as 
        provided in paragraph (2), to the extent that the President 
        determines necessary to remedy or prevent the serious damage and 
        to facilitate adjustment by the domestic industry.
            (2) Nature of relief.--The relief that the President is 
        authorized to provide under this subsection with respect to 
        imports of an article is an increase in the rate of duty imposed 
        on the article to a level that does not exceed the lesser of--
                    (A) the column 1 general rate of duty imposed under 
                the HTS on like articles at the time the import relief 
                is provided; or
                    (B) the column 1 general rate of duty imposed under 
                the HTS on like articles on the day before the date on 
                which the Agreement enters into force.
SEC. 323. PERIOD OF RELIEF.

    (a) In General.--Subject to subsection (b), any import relief that 
the President provides under section 322(b) may not, in the aggregate, 
be in effect for more than 3 years.
    (b) Extension.--If the initial period for any import relief provided 
under section 322 is less than 3 years, the President may extend the 
effective period of any import relief provided under that section, 
subject to the limitation set forth in subsection (a), if the President 
determines that--
            (1) the import relief continues to be necessary to remedy or 
        prevent serious damage and to facilitate adjustment by the 
        domestic industry to import competition; and
            (2) there is evidence that the industry is making a positive 
        adjustment to import competition.
SEC. 324. ARTICLES EXEMPT FROM RELIEF.

    The President may not provide import relief under this subtitle with 
respect to 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. 325. 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. 326. TERMINATION OF RELIEF AUTHORITY.

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

[[Page 125 STAT. 529]]

SEC. 327. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under this subtitle 
shall be treated as action taken under chapter 1 of title II of such Act 
(19 U.S.C. 2251 et seq.).
SEC. 328. 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 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 C--Cases Under Title II of the Trade Act of 1974

SEC. 331. FINDINGS AND ACTION ON PANAMANIAN ARTICLES.

    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), 
the Commission makes an affirmative determination (or a determination 
which the President may treat as an affirmative determination under such 
chapter by reason of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
1330(d))), the Commission shall also find (and report to the President 
at the time such injury determination is submitted to the President) 
whether imports of the Panamanian article are a substantial cause of 
serious injury or threat thereof.
    (b) Presidential Determination Regarding Imports of Panamanian 
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 Panamanian articles 
with respect to which the Commission has made a negative finding under 
subsection (a).

                         TITLE IV--MISCELLANEOUS

SEC. 401. ELIGIBLE PRODUCTS.

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

[[Page 125 STAT. 530]]

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

    (a) In General.--Section 212(b) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2702(b)) is amended by striking ``Panama'' from 
the list of countries eligible for designation as beneficiary countries.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on the date on which the President terminates the designation of 
Panama as a beneficiary country pursuant to section 201(a)(3) of this 
Act.

                            TITLE V--OFFSETS

SEC. 501. EXTENSION OF CUSTOMS USER FEES.

    Section 13031(j)(3) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended by adding at 
the end the following:
    ``(D) Notwithstanding subparagraph (B)(i), fees may be charged under 
paragraphs (1) through (8) of subsection (a) during the period beginning 
on September 1, 2021, and ending on September 30, 2021.''.
SEC. 502. 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 0.25 percent of such 
        amount (determined without regard to any increase in such amount 
        not contained in such Code); and

[[Page 125 STAT. 531]]

            (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. 3079 (S. 1643):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-238 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 157 (2011):
            Oct. 11, considered in House.
            Oct. 12, considered and passed House and Senate.

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