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[109th Congress Public Law 53]
[From the U.S. Government Printing Office]

[DOCID: f:publ053.109]

[[Page 461]]

 DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE TRADE AGREEMENT 
                           IMPLEMENTATION ACT

[[Page 119 STAT. 462]]

Public Law 109-53
109th Congress

                                 An Act

 
 To implement the Dominican Republic-Central America-United States Free 
         Trade Agreement. <<NOTE: Aug. 2, 2005 -  [H.R. 3045]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Dominican Republic-Central 
America-United States Free Trade Agreement Implementation Act. 19 USC 
4001 note.>> assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

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

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Retroactive application for certain liquidations and 
           reliquidations of textile or apparel goods.
Sec. 206. Disclosure of incorrect information; false certifications of 
           origin; denial of preferential tariff treatment.
Sec. 207. Reliquidation of entries.
Sec. 208. Recordkeeping requirements.
Sec. 209. Enforcement relating to trade in textile or apparel goods.
Sec. 210. Regulations.

                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.

      Subtitle A--Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.

[[Page 119 STAT. 463]]

           Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.

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

Sec. 331. Findings and action on goods of CAFTA-DR countries.

                         TITLE IV--MISCELLANEOUS

Sec. 401. Eligible products.
Sec. 402. Modifications to the Caribbean Basin Economic Recovery Act.
Sec. 403. Periodic reports and meetings on labor obligations and labor 
           capacity-building provisions.

SEC. 2. <<NOTE: 19 USC 4001.>> PURPOSES.

    The purposes of this Act are--
            (1) to approve and implement the Free Trade Agreement 
        between the United States, Costa Rica, the Dominican Republic, 
        El Salvador, Guatemala, Honduras, and Nicaragua entered into 
        under the authority of section 2103(b) of the Bipartisan Trade 
        Promotion Authority Act of 2002 (19 U.S.C. 3803(b));
            (2) to strengthen and develop economic relations between the 
        United States, Costa Rica, the Dominican Republic, El Salvador, 
        Guatemala, Honduras, and Nicaragua for their mutual benefit;
            (3) to establish free trade between the United States, Costa 
        Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, 
        and Nicaragua through the reduction and elimination of barriers 
        to trade in goods and services and to investment; and
            (4) to lay the foundation for further cooperation to expand 
        and enhance the benefits of the Agreement.

SEC. 3. <<NOTE: 19 USC 4002.>> DEFINITIONS.

    In this Act:
            (1) Agreement.--The term ``Agreement'' means the Dominican 
        Republic-Central America-United States Free Trade Agreement 
        approved by the Congress under section 101(a)(1).
            (2) CAFTA-DR country.--Except as provided in section 203, 
        the term ``CAFTA-DR country'' means--
                    (A) Costa Rica, for such time as the Agreement is in 
                force between the United States and Costa Rica;
                    (B) the Dominican Republic, for such time as the 
                Agreement is in force between the United States and the 
                Dominican Republic;
                    (C) El Salvador, for such time as the Agreement is 
                in force between the United States and El Salvador;
                    (D) Guatemala, for such time as the Agreement is in 
                force between the United States and Guatemala;
                    (E) Honduras, for such time as the Agreement is in 
                force between the United States and Honduras; and
                    (F) Nicaragua, for such time as the Agreement is in 
                force between the United States and Nicaragua.
            (3) Commission.--The term ``Commission'' means the United 
        States International Trade Commission.

[[Page 119 STAT. 464]]

            (4) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (5) Textile or apparel good.--The term ``textile or apparel 
        good'' means a good listed in the Annex to the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other than 
        a good listed in Annex 3.29 of the Agreement.

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

SEC. 101. <<NOTE: 19 USC 4011.>> APPROVAL AND ENTRY INTO FORCE OF THE 
            AGREEMENT.

    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority Act 
of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 (19 
U.S.C. 2191), the Congress approves--
            (1) the Dominican Republic-Central America-United States 
        Free Trade Agreement entered into on August 5, 2004, with the 
        Governments of Costa Rica, the Dominican Republic, El Salvador, 
        Guatemala, Honduras, and Nicaragua, and submitted to the 
        Congress on June 23, 2005; and
            (2) the statement of administrative action proposed to 
        implement the Agreement that was submitted to the Congress on 
        June 23, 2005.

    (b) Conditions for Entry Into force of the Agreement.--At such time 
as the President determines that countries listed in subsection (a)(1) 
have taken measures necessary to comply with the provisions of the 
Agreement that are to take effect on the date on which the Agreement 
enters into force, the President is authorized to provide for the 
Agreement to enter into force with respect to those countries that 
provide for the Agreement to enter into force for them.

SEC. 102. <<NOTE: 19 USC 4012.>> 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

[[Page 119 STAT. 465]]

        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. <<NOTE: 19 USC 4013.>> IMPLEMENTING ACTIONS IN ANTICIPATION OF 
            ENTRY INTO FORCE AND INITIAL REGULATIONS.

    (a) Implementing Actions.--
            (1) Proclamation authority.--After the date of the enactment 
        of this Act--
                    (A) the President may proclaim such actions, and
                    (B) other appropriate officers of the United States 
                Government may issue such regulations,
        as may be necessary to ensure that any provision of this Act, or 
        amendment made by this Act, that takes effect on the date the 
        Agreement enters into force is appropriately implemented on such 
        date, but no such proclamation or regulation may have an 
        effective date earlier than the date the Agreement enters into 
        force.
            (2) <<NOTE: Federal Register, publication.>> 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) <<NOTE: Deadlines.>> Initial Regulations.--Initial regulations 
necessary or appropriate to carry out the actions required by or 
authorized under this Act or proposed in the statement of administrative 
action submitted under section 101(a)(2) to implement the Agreement 
shall, to the maximum extent feasible, be issued within 1 year after the 
date on which the Agreement enters into force. In the case of any 
implementing action that takes effect on a date after the date on which 
the Agreement enters into force, initial regulations to carry out that 
action shall, to the maximum extent feasible, be issued within 1 year 
after such effective date.

SEC. 104. <<NOTE: President. 19 USC 4014.>> 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

[[Page 119 STAT. 466]]

consultation and layover requirements of this section, such action may 
be proclaimed only if--
            (1) the President has obtained advice regarding the proposed 
        action from--
                    (A) the appropriate advisory committees established 
                under section 135 of the Trade Act of 1974 (19 U.S.C. 
                2155); and
                    (B) the Commission;
            (2) <<NOTE: Reports.>> the President has submitted to the 
        Committee on Finance of the Senate and the Committee on Ways and 
        Means of the House of Representatives a report that sets forth--
                    (A) the action proposed to be proclaimed and the 
                reasons therefor; and
                    (B) the advice obtained under paragraph (1);
            (3) a period of 60 calendar days, beginning on the first day 
        on which the requirements set forth in paragraphs (1) and (2) 
        have been met has expired; and
            (4) the President has consulted with such Committees 
        regarding the proposed action during the period referred to in 
        paragraph (3).

SEC. 105. <<NOTE: 19 USC 4015.>> ADMINISTRATION OF DISPUTE SETTLEMENT 
            PROCEEDINGS.

    (a) <<NOTE: President.>> Establishment or Designation of Office.--
The President is authorized to establish or designate within the 
Department of Commerce an office that shall be responsible for providing 
administrative assistance to panels established under chapter 20 of the 
Agreement. The office may not be considered to be an agency for purposes 
of section 552 of title 5, United States Code.

    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 2005 to the 
Department of Commerce such sums as may be necessary for the 
establishment and operations of the office established or designated 
under subsection (a) and for the payment of the United States share of 
the expenses of panels established under chapter 20 of the Agreement.

SEC. 106. <<NOTE: 19 USC 4016.>> 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. <<NOTE: 19 USC 4001 note.>> EFFECTIVE DATES; EFFECT OF 
            TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the 
provisions of this Act and the amendments made by this Act take effect 
on the date the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on 
the date of the enactment of this Act.
    (c) Termination of CAFTA-DR Status.--During any period in which a 
country ceases to be a CAFTA-DR country, the provisions of this Act 
(other than this subsection) and the amendments made by this Act shall 
cease to have effect with respect to that country.
    (d) Termination of the Agreement.--On the date on which the 
Agreement ceases to be in force with respect to the United States, the 
provisions of this Act (other than this subsection) and the amendments 
made by this Act shall cease to have effect.

[[Page 119 STAT. 467]]

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. <<NOTE: 19 USC 4031.>> TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--
            (1) Proclamation authority.--The President may pro- claim--
                    (A) such modifications or continuation of any duty,
                    (B) such continuation of duty-free or excise 
                treatment, or
                    (C) such additional duties,
        as the President determines to be necessary or appropriate to 
        carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, and 
        3.28, and Annexes 3.3, 3.27, and 3.28 of the Agreement.
            (2) <<NOTE: President.>> Effect on gsp status.--
        Notwithstanding section 502(a)(1) of the Trade Act of 1974 (19 
        U.S.C. 2462(a)(1)), the President shall terminate the 
        designation of each CAFTA-DR country as a beneficiary developing 
        country for purposes of title V of the Trade Act of 1974 on the 
        date the Agreement enters into force with respect to that 
        country.
            (3) Effect on cbera status.--
                    (A) <<NOTE: President.>> In general.--
                Notwithstanding section 212(a) of the Caribbean Basin 
                Economic Recovery Act (19 U.S.C. 2702(a)), the President 
                shall terminate the designation of each CAFTA-DR country 
                as a beneficiary country for purposes of that Act on the 
                date the Agreement enters into force with respect to 
                that country.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                each such country shall be considered a beneficiary 
                country under section 212(a) of the Caribbean Basin 
                Economic Recovery Act, for purposes of--
                          (i) sections 771(7)(G)(ii)(III) and 771(7)(H) 
                      of the Tariff Act of 1930 (19 U.S.C. 
                      1677(7)(G)(ii)(III) and 1677(7)(H));
                          (ii) the duty-free treatment provided under 
                      paragraph 12 of Appendix I of the General Notes to 
                      the Schedule of the United States to Annex 3.3 of 
                      the Agreement; and
                          (iii) section 274(h)(6)(B) of the Internal 
                      Revenue Code of 1986.

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

as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections (a) 
and (b), with respect to any good for which the base rate in the 
Schedule of the United States to Annex 3.3 of the Agreement is a 
specific or compound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President determines to be 
equivalent to the base rate.

[[Page 119 STAT. 468]]

SEC. 202. <<NOTE: 19 USC 4032.>> ADDITIONAL DUTIES ON CERTAIN 
            AGRICULTURAL GOODS.

    (a) General Provisions.--
            (1) Applicability of subsection.--This subsection applies to 
        additional duties assessed under subsection (b).
            (2) Applicable ntr (mfn) rate of duty.--For purposes of 
        subsection (b), the term ``applicable NTR (MFN) rate of duty'' 
        means, with respect to a safeguard good, a rate of duty that is 
        the lesser of--
                    (A) the column 1 general rate of duty that would, at 
                the time the additional duty is imposed under subsection 
                (b), apply to a good classifiable in the same 8-digit 
                subheading of the HTS as the safeguard good; or
                    (B) the column 1 general rate of duty that would, on 
                the day before the date on which the Agreement enters 
                into force, apply to a good classifiable in the same 8-
                digit subheading of the HTS as the safeguard good.
            (3) Schedule rate of duty.--For purposes of subsection (b), 
        the term ``schedule rate of duty'' means, with respect to a 
        safeguard good, the rate of duty for that good that is set out 
        in the Schedule of the United States to Annex 3.3 of the 
        Agreement.
            (4) Safeguard good.--In this section, the term ``safeguard 
        good'' means a good--
                    (A) that is included in the Schedule of the United 
                States to Annex 3.15 of the Agreement;
                    (B) that qualifies as an originating good under 
                section 203, except that operations performed in or 
                material obtained from the United States shall be 
                considered as if the operations were performed in, and 
                the material was obtained from, a country that is not a 
                party to the Agreement; and
                    (C) for which a claim for preferential tariff 
                treatment under the Agreement has been made.
            (5) Exceptions.--No additional duty shall be assessed on a 
        good under subsection (b) if, at the time of entry, the good is 
        subject to import relief under--
                    (A) subtitle A of title III of this Act; or
                    (B) chapter 1 of title II of the Trade Act of 1974 
                (19 U.S.C. 2251 et seq.).
            (6) Termination.--The assessment of an additional duty on a 
        good under subsection (b) shall cease to apply to that good on 
        the date on which duty-free treatment must be provided to that 
        good under the Schedule of the United States to Annex 3.3 of the 
        Agreement.
            (7) <<NOTE: Deadline.>> Notice.--Not later than 60 days 
        after the Secretary of the Treasury first assesses an additional 
        duty in a calendar year on a good under subsection (b), the 
        Secretary shall notify the country whose good is subject to the 
        additional duty in writing of such action and shall provide to 
        that country data supporting the assessment of the additional 
        duty.

    (b) Additional Duties on Safeguard Goods.--
            (1) In general.--In addition to any duty proclaimed under 
        subsection (a) or (b) of section 201, and subject to subsection 
        (a), the Secretary of the Treasury shall assess a duty, in the 
        amount determined under paragraph (2), on a safeguard good of a 
        CAFTA-DR country imported into the United States in a calendar 
        year if the Secretary determines that, prior to such

[[Page 119 STAT. 469]]

        importation, the total volume of that safeguard good of such 
        country that is imported into the United States in that calendar 
        year exceeds 130 percent of the volume that is set out for that 
        safeguard good in the corresponding year in the table for that 
        country contained in Appendix I of the General Notes to the 
        Schedule of the United States to Annex 3.3 of the Agreement. For 
        purposes of this subsection, year 1 in that table corresponds to 
        the calendar year in which the Agreement enters into force.
            (2) Calculation of additional duty.--The additional duty on 
        a safeguard good under this subsection shall be--
                    (A) in the case of a good classified under 
                subheading 1202.10.80, 1202.20.80, 2008.11.15, 
                2008.11.35, or 2008.11.60 of the HTS--
                          (i) in years 1 through 5, an amount equal to 
                      100 percent of the excess of the applicable NTR 
                      (MFN) rate of duty over the schedule rate of duty;
                          (ii) in years 6 through 10, an amount equal to 
                      75 percent of the excess of the applicable NTR 
                      (MFN) rate of duty over the schedule rate of duty; 
                      and
                          (iii) in years 11 through 14, an amount equal 
                      to 50 percent of the excess of the applicable NTR 
                      (MFN) rate of duty over the schedule rate of duty; 
                      and
                    (B) in the case of any other safeguard good--
                          (i) in years 1 through 14, an amount equal to 
                      100 percent of the excess of the applicable NTR 
                      (MFN) rate of duty over the schedule rate of duty;
                          (ii) in years 15 through 17, an amount equal 
                      to 75 percent of the excess of the applicable NTR 
                      (MFN) rate of duty over the schedule rate of duty; 
                      and
                          (iii) in years 18 and 19, an amount equal to 
                      50 percent of the excess of the applicable NTR 
                      (MFN) rate of duty over the schedule rate of duty.

SEC. 203. <<NOTE: 19 USC 4033.>> RULES OF ORIGIN.

    (a) Application and Interpretation.--In this section:
            (1) Tariff classification.--The basis for any tariff 
        classification is the HTS.
            (2) Reference to hts.--Whenever in this section there is a 
        reference to a chapter, heading, or subheading, such reference 
        shall be a reference to a chapter, heading, or subheading of the 
        HTS.
            (3) Cost or value.--Any cost or value referred to in this 
        section shall be recorded and maintained in accordance with the 
        generally accepted accounting principles applicable in the 
        territory of the country in which the good is produced (whether 
        the United States or another CAFTA-DR country).

    (b) Originating Goods.--For purposes of this Act and for purposes of 
implementing the preferential tariff treatment provided for under the 
Agreement, except as otherwise provided in this section, a good is an 
originating good if--
            (1) the good is a good wholly obtained or produced entirely 
        in the territory of one or more of the CAFTA-DR countries;
            (2) the good--
                    (A) is produced entirely in the territory of one or 
                more of the CAFTA-DR countries, and--

[[Page 119 STAT. 470]]

                          (i) each of the nonoriginating materials used 
                      in the production of the good undergoes an 
                      applicable change in tariff classification 
                      specified in Annex 4.1 of the Agreement; or
                          (ii) the good otherwise satisfies any 
                      applicable regional value-content or other 
                      requirements specified in Annex 4.1 of the 
                      Agreement; and
                    (B) satisfies all other applicable requirements of 
                this section; or
            (3) the good is produced entirely in the territory of one or 
        more of the CAFTA-DR countries, exclusively from materials 
        described in paragraph (1) or (2).

    (c) Regional Value-Content.--
            (1) In general.--For purposes of subsection (b)(2), the 
        regional value-content of a good referred to in Annex 4.1 of the 
        Agreement, except for goods to which paragraph (4) applies, 
        shall be calculated by the importer, exporter, or producer of 
        the good, on the basis of the build-down method described in 
        paragraph (2) or the build-up method described in paragraph (3).
            (2) Build-down method.--
                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                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.
            (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.--

[[Page 119 STAT. 471]]

                    (A) In general.--For purposes of subsection (b)(2), 
                the regional value-content of an automotive good 
                referred to in Annex 4.1 of the Agreement may be 
                calculated by the importer, exporter, or producer of the 
                good, on the basis of the following net cost method:

                                       nc-vnm

                           rvc = -------- <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 in any of headings 8701 
                      through 8708.
                          (ii) RVC.--The term ``RVC'' means the regional 
                      value-content of the automotive good, expressed as 
                      a percentage.
                          (iii) NC.--The term ``NC'' means the net cost 
                      of the automotive good.
                          (iv) VNM.--The term ``VNM'' means the value of 
                      nonoriginating materials that are acquired and 
                      used by the producer in the production of the 
                      automotive good, but does not include the value of 
                      a material that is self-produced.
                    (C) Motor vehicles.--
                          (i) Basis of calculation.--For purposes of 
                      determining the regional value-content under 
                      subparagraph (A) for an automotive good that is a 
                      motor vehicle provided for in any of headings 8701 
                      through 8705, an importer, exporter, or producer 
                      may average the amounts calculated under the 
                      formula contained in subparagraph (A), over the 
                      producer's fiscal year--
                                    (I) with respect to all motor 
                                vehicles in any 1 of the categories 
                                described in clause (ii); or
                                    (II) with respect to all motor 
                                vehicles in any such category that are 
                                exported to the territory of one or more 
                                of the CAFTA-DR countries.
                          (ii) Categories.--A category is described in 
                      this clause if it--
                                    (I) is the same model line of motor 
                                vehicles, is in the same class of 
                                vehicles, and is produced in the same 
                                plant in the territory of a CAFTA-DR 
                                country, as the good described in clause 
                                (i) for which regional value-content is 
                                being calculated;
                                    (II) is the same class of motor 
                                vehicles, and is produced in the same 
                                plant in the territory of a CAFTA-DR 
                                country, as the good described in clause 
                                (i) for which regional value-content is 
                                being calculated; or
                                    (III) is the same model line of 
                                motor vehicles produced in the territory 
                                of a CAFTA-DR country as the good 
                                described in clause (i) for which 
                                regional value-content is being 
                                calculated.
                    (D) Other automotive goods.--For purposes of 
                determining the regional value-content under 
                subparagraph (A) for automotive goods provided for in 
                any of subheadings

[[Page 119 STAT. 472]]

                8407.31 through 8407.34, in subheading 8408.20, or in 
                heading 8409, 8706, 8707, or 8708, that are produced in 
                the same plant, an importer, exporter, or producer may--
                          (i) average the amounts calculated under the 
                      formula contained in subparagraph (A) over--
                                    (I) the fiscal year of the motor 
                                vehicle producer to whom the automotive 
                                goods are sold,
                                    (II) any quarter or month, or
                                    (III) its own fiscal year,
                      if the goods were produced during the fiscal year, 
                      quarter, or month that is the basis for the 
                      calculation;
                          (ii) determine the average referred to in 
                      clause (i) separately for such goods sold to 1 or 
                      more motor vehicle producers; or
                          (iii) make a separate determination under 
                      clause (i) or (ii) for automotive goods that are 
                      exported to the territory of one or more of the 
                      CAFTA-DR countries.
                    (E) Calculating net cost.--The importer, exporter, 
                or producer shall, consistent with the provisions 
                regarding allocation of costs set out in generally 
                accepted accounting principles, determine the net cost 
                of an automotive good under subparagraph (B) by--
                          (i) calculating the total cost incurred with 
                      respect to all goods produced by the producer of 
                      the automotive good, subtracting any sales 
                      promotion, marketing and after-sales service 
                      costs, royalties, shipping and packing costs, and 
                      nonallowable interest costs that are included in 
                      the total cost of all such goods, and then 
                      reasonably allocating the resulting net cost of 
                      those goods to the automotive good;
                          (ii) calculating the total cost incurred with 
                      respect to all goods produced by that producer, 
                      reasonably allocating the total cost to the 
                      automotive good, and then subtracting any sales 
                      promotion, marketing and after-sales service 
                      costs, royalties, shipping and packing costs, and 
                      nonallowable interest costs that are included in 
                      the portion of the total cost allocated to the 
                      automotive good; or
                          (iii) reasonably allocating each cost that 
                      forms part of the total cost incurred with respect 
                      to the automotive good so that the aggregate of 
                      all such costs does not include any sales 
                      promotion, marketing and after-sales service 
                      costs, royalties, shipping and packing costs, or 
                      nonallowable interest costs.

    (d) Value of Materials.--
            (1) In general.--For the purpose of calculating the regional 
        value-content of a good under subsection (c), and for purposes 
        of applying the de minimis rules under subsection (f), the value 
        of a material is--
                    (A) in the case of a material that is imported by 
                the producer of the good, the adjusted value of the 
                material;
                    (B) in the case of a material acquired in the 
                territory in which the good is produced, the value, 
                determined in accordance with Articles 1 through 8, 
                Article 15, and the corresponding interpretive notes of 
                the Agreement on Implementation of Article VII of the 
                General Agreement

[[Page 119 STAT. 473]]

                on Tariffs and Trade 1994 referred to in section 
                101(d)(8) of the Uruguay Round Agreements Act, as set 
                forth in regulations promulgated by the Secretary of the 
                Treasury providing for the application of such Articles 
                in the absence of an importation; or
                    (C) in the case of a material that is self-produced, 
                the sum of--
                          (i) all expenses incurred in the production of 
                      the material, including general expenses; and
                          (ii) an amount for profit equivalent to the 
                      profit added in the normal course of trade.
            (2) Further adjustments to the value of materials.--
                    (A) Originating material.--The following expenses, 
                if not included in the value of an originating material 
                calculated under paragraph (1), may be added to the 
                value of the originating material:
                          (i) The costs of freight, insurance, packing, 
                      and all other costs incurred in transporting the 
                      material within or between the territory of one or 
                      more of the CAFTA-DR countries to the location of 
                      the producer.
                          (ii) Duties, taxes, and customs brokerage fees 
                      on the material paid in the territory of one or 
                      more of the CAFTA-DR countries, other than duties 
                      or taxes that are waived, refunded, refundable, or 
                      otherwise recoverable, including credit against 
                      duty or tax paid or payable.
                          (iii) The cost of waste and spoilage resulting 
                      from the use of the material in the production of 
                      the good, less the value of renewable scrap or 
                      byproducts.
                    (B) Nonoriginating material.--The following 
                expenses, if included in the value of a nonoriginating 
                material calculated under paragraph (1), may be deducted 
                from the value of the nonoriginating material:
                          (i) The costs of freight, insurance, packing, 
                      and all other costs incurred in transporting the 
                      material within or between the territory of one or 
                      more of the CAFTA-DR countries to the location of 
                      the producer.
                          (ii) Duties, taxes, and customs brokerage fees 
                      on the material paid in the territory of one or 
                      more of the CAFTA-DR countries, other than duties 
                      or taxes that are waived, refunded, refundable, or 
                      otherwise recoverable, including credit against 
                      duty or tax paid or payable.
                          (iii) The cost of waste and spoilage resulting 
                      from the use of the material in the production of 
                      the good, less the value of renewable scrap or 
                      byproducts.
                          (iv) The cost of originating materials used in 
                      the production of the nonoriginating material in 
                      the territory of one or more of the CAFTA-DR 
                      countries.

    (e) Accumulation.--
            (1) Originating materials used in production of goods of 
        another country.--Originating materials from the territory of 
        one or more of the CAFTA-DR countries that are used in the 
        production of a good in the territory of another CAFTA-DR 
        country shall be considered to originate in the territory of 
        that other country.

[[Page 119 STAT. 474]]

            (2) Multiple procedures.--A good that is produced in the 
        territory of one or more of the CAFTA-DR countries by 1 or more 
        producers is an originating good if the good satisfies the 
        requirements of subsection (b) and all other applicable 
        requirements of this section.

    (f) De Minimis Amounts of Nonoriginating Materials.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), a good that does not undergo a change in tariff 
        classification pursuant to Annex 4.1 of the Agreement is an 
        originating good if--
                    (A) the value of all nonoriginating materials that--
                          (i) are used in the production of the good, 
                      and
                          (ii) do not undergo the applicable change in 
                      tariff classification (set out in Annex 4.1 of the 
                      Agreement),
                does not exceed 10 percent of the adjusted value of the 
                good;
                    (B) the good meets all other applicable requirements 
                of this section; and
                    (C) the value of such nonoriginating materials is 
                included in the value of nonoriginating materials for 
                any applicable regional value-content requirement for 
                the good.
            (2) Exceptions.--Paragraph (1) does not apply to the 
        following:
                    (A) A nonoriginating material provided for in 
                chapter 4, or a nonoriginating dairy preparation 
                containing over 10 percent by weight of milk solids 
                provided for in subheading 1901.90 or 2106.90, that is 
                used in the production of a good provided for in chapter 
                4.
                    (B) A nonoriginating material provided for in 
                chapter 4, or a nonoriginating dairy preparation 
                containing over 10 percent by weight of milk solids 
                provided for in subheading 1901.90, that is used in the 
                production of the following goods:
                          (i) Infant preparations containing over 10 
                      percent by weight of milk solids provided for in 
                      subheading 1901.10.
                          (ii) Mixes and doughs, containing over 25 
                      percent by weight of butterfat, not put up for 
                      retail sale, provided for in subheading 1901.20.
                          (iii) Dairy preparations containing over 10 
                      percent by weight of milk solids provided for in 
                      subheading 1901.90 or 2106.90.
                          (iv) Goods provided for in heading 2105.
                          (v) Beverages containing milk provided for in 
                      subheading 2202.90.
                          (vi) Animal feeds containing over 10 percent 
                      by weight of milk solids provided for in 
                      subheading 2309.90.
                    (C) A nonoriginating material provided for in 
                heading 0805, or any of subheadings 2009.11 through 
                2009.39, that is used in the production of a good 
                provided for in any of subheadings 2009.11 through 
                2009.39, or in fruit or vegetable juice of any single 
                fruit or vegetable, fortified with minerals or vitamins, 
                concentrated or unconcentrated, provided for in 
                subheading 2106.90 or 2202.90.

[[Page 119 STAT. 475]]

                    (D) A nonoriginating material provided for in 
                heading 0901 or 2101 that is used in the production of a 
                good provided for in heading 0901 or 2101.
                    (E) A nonoriginating material provided for in 
                heading 1006 that is used in the production of a good 
                provided for in heading 1102 or 1103 or subheading 
                1904.90.
                    (F) A nonoriginating material provided for in 
                chapter 15 that is used in the production of a good 
                provided for in chapter 15.
                    (G) A nonoriginating material provided for in 
                heading 1701 that is used in the production of a good 
                provided for in any of headings 1701 through 1703.
                    (H) A nonoriginating material provided for in 
                chapter 17 that is used in the production of a good 
                provided for in subheading 1806.10.
                    (I) Except as provided in subparagraphs (A) through 
                (H) and Annex 4.1 of the Agreement, a nonoriginating 
                material used in the production of a good provided for 
                in any of chapters 1 through 24, unless the 
                nonoriginating material is provided for in a different 
                subheading than the good for which origin is being 
                determined under this section.
            (3) Textile or apparel goods.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a textile or apparel good that is not an 
                originating good because certain fibers or yarns used in 
                the production of the component of the good that 
                determines the tariff classification of the good do not 
                undergo an applicable change in tariff classification, 
                set out in Annex 4.1 of the Agreement, shall be 
                considered to be an originating good if--
                          (i) the total weight of all such fibers or 
                      yarns in that component is not more than 10 
                      percent of the total weight of that component; or
                          (ii) the yarns are those described in section 
                      204(b)(3)(B)(vi)(IV) of the Andean Trade 
                      Preference Act (19 U.S.C. 
                      3203(b)(3)(B)(vi)(IV))(as in effect on the date of 
                      the enactment of this Act).
                    (B) Certain textile or apparel goods.--A textile or 
                apparel good containing elastomeric yarns in the 
                component of the good that determines the tariff 
                classification of the good shall be considered to be an 
                originating good only if such yarns are wholly formed in 
                the territory of a CAFTA-DR country.
                    (C) Yarn, fabric, or fiber.--For purposes of this 
                paragraph, in the case of a good that is a yarn, fabric, 
                or fiber, the term ``component of the good that 
                determines the tariff classification of the good'' means 
                all of the fibers in the good.

    (g) Fungible Goods and Materials.--
            (1) In general.--
                    (A) Claim for preferential tariff treatment.--A 
                person claiming that a fungible good or fungible 
                material is an originating good may base the claim 
                either on the physical segregation of the fungible good 
                or fungible material or by using an inventory management 
                method with respect to the fungible good or fungible 
                material.

[[Page 119 STAT. 476]]

                    (B) Inventory management method.--In this 
                subsection, the term ``inventory management method'' 
                means--
                          (i) averaging;
                          (ii) ``last-in, first-out'';
                          (iii) ``first-in, first-out''; or
                          (iv) any other method--
                                    (I) recognized in the generally 
                                accepted accounting principles of the 
                                CAFTA-DR country in which the production 
                                is performed; or
                                    (II) otherwise accepted by that 
                                country.
            (2) Election of inventory method.--A person selecting an 
        inventory management method under paragraph (1) for a particular 
        fungible good or fungible material shall continue to use that 
        method for that fungible good or fungible material throughout 
        the fiscal year of that person.

    (h) Accessories, Spare Parts, or Tools.--
            (1) In general.--Subject to paragraphs (2) and (3), 
        accessories, spare parts, or tools delivered with a good that 
        form part of the good's standard accessories, spare parts, or 
        tools shall--
                    (A) be treated as originating goods if the good is 
                an originating good; and
                    (B) be disregarded in determining whether all the 
                nonoriginating materials used in the production of the 
                good undergo the applicable change in tariff 
                classification set out in Annex 4.1 of the Agreement.
            (2) <<NOTE: Applicability.>> Conditions.--Paragraph (1) 
        shall apply only if--
                    (A) the accessories, spare parts, or tools are 
                classified with and not invoiced separately from the 
                good, regardless of whether they appear specified or 
                separately identified in the invoice for the good; and
                    (B) the quantities and value of the accessories, 
                spare parts, or tools are customary for the good.
            (3) Regional value-content.--If the good is subject to a 
        regional value-content requirement, the value of the 
        accessories, spare parts, or tools shall be taken into account 
        as originating or nonoriginating materials, as the case may be, 
        in calculating the regional value-content of the good.

    (i) Packaging Materials and Containers for Retail Sale.--Packaging 
materials and containers in which a good is packaged for retail sale, if 
classified with the good, shall be disregarded in determining whether 
all the nonoriginating materials used in the production of the good 
undergo the applicable change in tariff classification set out in Annex 
4.1 of the Agreement, and, if the good is subject to a regional value-
content requirement, the value of such packaging materials and 
containers shall be taken into account as originating or nonoriginating 
materials, as the case may be, in calculating the regional value-content 
of the good.
    (j) Packing Materials and Containers for Shipment.--Packing 
materials and containers for shipment shall be disregarded in 
determining whether a good is an originating good.
    (k) Indirect Materials.--An indirect material shall be treated as an 
originating material without regard to where it is produced.
    (l) Transit and Transhipment.--A good that has undergone production 
necessary to qualify as an originating good under subsection (b) shall 
not be considered to be an originating good if, subsequent to that 
production, the good--

[[Page 119 STAT. 477]]

            (1) undergoes further production or any other operation 
        outside the territories of the CAFTA-DR countries, other than 
        unloading, reloading, or any other operation necessary to 
        preserve the good in good condition or to transport the good to 
        the territory of a CAFTA-DR country; or
            (2) does not remain under the control of customs authorities 
        in the territory of a country other than a CAFTA-DR country.

    (m) Goods Classifiable as Goods Put Up in Sets.--Notwithstanding the 
rules set forth in Annex 4.1 of the Agreement, goods classifiable as 
goods put up in sets for retail sale as provided for in General Rule of 
Interpretation 3 of the HTS shall not be considered to be originating 
goods unless--
            (1) each of the goods in the set is an originating good; or
            (2) the total value of the nonoriginating goods in the set 
        does not exceed--
                    (A) in the case of textile or apparel goods, 10 
                percent of the adjusted value of the set; or
                    (B) in the case of a good, other than a textile or 
                apparel good, 15 percent of the adjusted value of the 
                set.

    (n) Definitions.--In this section:
            (1) Adjusted value.--The term ``adjusted value'' means the 
        value determined in accordance with Articles 1 through 8, 
        Article 15, and the corresponding interpretive notes of the 
        Agreement on Implementation of Article VII of the General 
        Agreement on Tariffs and Trade 1994 referred to in section 
        101(d)(8) of the Uruguay Round Agreements Act, adjusted, if 
        necessary, to exclude any costs, charges, or expenses incurred 
        for transportation, insurance, and related services incident to 
        the international shipment of the merchandise from the country 
        of exportation to the place of importation.
            (2) CAFTA-DR country.--The term ``CAFTA-DR country'' means--
                    (A) the United States; and
                    (B) Costa Rica, the Dominican Republic, El Salvador, 
                Guatemala, Honduras, or Nicaragua, for such time as the 
                Agreement is in force between the United States and that 
                country.
            (3) Class of motor vehicles.--The term ``class of motor 
        vehicles'' means any one of the following categories of motor 
        vehicles:
                    (A) Motor vehicles provided for in subheading 
                8701.20, 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, 
                or heading 8705 or 8706, or motor vehicles for the 
                transport of 16 or more persons provided for in 
                subheading 8702.10 or 8702.90.
                    (B) Motor vehicles provided for in subheading 
                8701.10 or any of subheadings 8701.30 through 8701.90.
                    (C) Motor vehicles for the transport of 15 or fewer 
                persons provided for in subheading 8702.10 or 8702.90, 
                or motor vehicles provided for in subheading 8704.21 or 
                8704.31.
                    (D) Motor vehicles provided for in any of 
                subheadings 8703.21 through 8703.90.
            (4) Fungible good or fungible material.--The term ``fungible 
        good'' or ``fungible material'' means a good or material, as the 
        case may be, that is interchangeable with another good

[[Page 119 STAT. 478]]

        or material for commercial purposes and the properties of which 
        are essentially identical to such other good or material.
            (5) Generally accepted accounting principles.--The term 
        ``generally accepted accounting principles'' means the 
        recognized consensus or substantial authoritative support in the 
        territory of a CAFTA-DR country with respect to the recording of 
        revenues, expenses, costs, assets, and liabilities, the 
        disclosure of information, and the preparation of financial 
        statements. The principles may encompass broad guidelines of 
        general application as well as detailed standards, practices, 
        and procedures.
            (6) Goods wholly obtained or produced entirely in the 
        territory of one or more of the cafta-dr countries.--The term 
        ``goods wholly obtained or produced entirely in the territory of 
        one or more of the CAFTA-DR countries'' means--
                    (A) plants and plant products harvested or gathered 
                in the territory of one or more of the CAFTA-DR 
                countries;
                    (B) live animals born and raised in the territory of 
                one or more of the CAFTA-DR countries;
                    (C) goods obtained in the territory of one or more 
                of the CAFTA-DR countries from live animals;
                    (D) goods obtained from hunting, trapping, fishing 
                or aquaculture conducted in the territory of one or more 
                of the CAFTA-DR countries;
                    (E) minerals and other natural resources not 
                included in subparagraphs (A) through (D) that are 
                extracted or taken in the territory of one or more of 
                the CAFTA-DR countries;
                    (F) fish, shellfish, and other marine life taken 
                from the sea, seabed, or subsoil outside the territory 
                of one or more of the CAFTA-DR countries by vessels 
                registered or recorded with a CAFTA-DR country and 
                flying the flag of that country;
                    (G) goods produced on board factory ships from the 
                goods referred to in subparagraph (F), if such factory 
                ships are registered or recorded with that CAFTA-DR 
                country and fly the flag of that country;
                    (H) goods taken by a CAFTA-DR country or a person of 
                a CAFTA-DR country from the seabed or subsoil outside 
                territorial waters, if a CAFTA-DR country has rights to 
                exploit such seabed or subsoil;
                    (I) goods taken from outer space, if the goods are 
                obtained by a CAFTA-DR country or a person of a CAFTA-DR 
                country and not processed in the territory of a country 
                other than a CAFTA-DR country;
                    (J) waste and scrap derived from--
                          (i) manufacturing or processing operations in 
                      the territory of one or more of the CAFTA-DR 
                      countries; or
                          (ii) used goods collected in the territory of 
                      one or more of the CAFTA-DR countries, if such 
                      goods are fit only for the recovery of raw 
                      materials;
                    (K) recovered goods derived in the territory of one 
                or more of the CAFTA-DR countries from used goods, and 
                used in the territory of a CAFTA-DR country in the 
                production of remanufactured goods; and

[[Page 119 STAT. 479]]

                    (L) goods produced in the territory of one or more 
                of the CAFTA-DR countries exclusively from--
                          (i) goods referred to in any of subparagraphs 
                      (A) through (J), or
                          (ii) the derivatives of goods referred to in 
                      clause (i),
                at any stage of production.
            (7) Identical goods.--The term ``identical goods'' means 
        identical goods as defined in the Agreement on Implementation of 
        Article VII of the General Agreement on Tariffs and Trade 1994 
        referred to in section 101(d)(8) of the Uruguay Round Agreements 
        Act;
            (8) Indirect material.--The term ``indirect material'' means 
        a good used in the production, testing, or inspection of a good 
        but not physically incorporated into the good, or a good used in 
        the maintenance of buildings or the operation of equipment 
        associated with the production of a good, including--
                    (A) fuel and energy;
                    (B) tools, dies, and molds;
                    (C) spare parts and materials used in the 
                maintenance of equipment or buildings;
                    (D) lubricants, greases, compounding materials, and 
                other materials used in production or used to operate 
                equipment or buildings;
                    (E) gloves, glasses, footwear, clothing, safety 
                equipment, and supplies;
                    (F) equipment, devices, and supplies used for 
                testing or inspecting the good;
                    (G) catalysts and solvents; and
                    (H) any other goods that are not incorporated into 
                the good but the use of which in the production of the 
                good can reasonably be demonstrated to be a part of that 
                production.
            (9) Material.--The term ``material'' means a good that is 
        used in the production of another good, including a part or an 
        ingredient.
            (10) Material that is self-produced.--The term ``material 
        that is self-produced'' means an originating material that is 
        produced by a producer of a good and used in the production of 
        that good.
            (11) Model line.--The term ``model line'' means a group of 
        motor vehicles having the same platform or model name.
            (12) Net cost.--The term ``net cost'' means total cost minus 
        sales promotion, marketing, and after-sales service costs, 
        royalties, shipping and packing costs, and non-allowable 
        interest costs that are included in the total cost.
            (13) Nonallowable interest costs.--The term ``nonallowable 
        interest costs'' means interest costs incurred by a producer 
        that exceed 700 basis points above the applicable official 
        interest rate for comparable maturities of the CAFTA-DR country 
        in which the producer is located.
            (14) Nonoriginating good or nonoriginating material.--The 
        terms ``nonoriginating good'' and ``nonoriginating material'' 
        mean a good or material, as the case may be, that does not 
        qualify as originating under this section.

[[Page 119 STAT. 480]]

            (15) Packing materials and containers for shipment.--The 
        term ``packing materials and containers for shipment'' means the 
        goods used to protect a good during its transportation and does 
        not include the packaging materials and containers in which a 
        good is packaged for retail sale.
            (16) Preferential tariff treatment.--The term ``preferential 
        tariff treatment'' means the customs duty rate, and the 
        treatment under article 3.10.4 of the Agreement, that are 
        applicable to an originating good pursuant to the Agreement.
            (17) Producer.--The term ``producer'' means a person who 
        engages in the production of a good in the territory of a CAFTA-
        DR country.
            (18) Production.--The term ``production'' means growing, 
        mining, harvesting, fishing, raising, trapping, hunting, 
        manufacturing, processing, assembling, or disassembling a good.
            (19) Reasonably allocate.--The term ``reasonably allocate'' 
        means to apportion in a manner that would be appropriate under 
        generally accepted accounting principles.
            (20) Recovered goods.--The term ``recovered goods'' means 
        materials in the form of individual parts that are the result 
        of--
                    (A) the disassembly of used goods into individual 
                parts; and
                    (B) the cleaning, inspecting, testing, or other 
                processing that is necessary for improvement to sound 
                working condition of such individual parts.
            (21) Remanufactured good.--The term ``remanufactured good'' 
        means a good that is classified under chapter 84, 85, or 87, or 
        heading 9026, 9031, or 9032, other than a good classified under 
        heading 8418 or 8516, and that--
                    (A) is entirely or partially comprised of recovered 
                goods; and
                    (B) has a similar life expectancy and enjoys a 
                factory warranty similar to such a new good.
            (22) Total cost.--The term ``total cost'' means all product 
        costs, period costs, and other costs for a good incurred in the 
        territory of one or more of the CAFTA-DR countries.
            (23) Used.--The term ``used'' means used or consumed in the 
        production of goods.

    (o) Presidential Proclamation Authority.--
            (1) In general.--The President is authorized to proclaim, as 
        part of the HTS--
                    (A) the provisions set out in Annex 4.1 of the 
                Agreement; and
                    (B) any additional subordinate category necessary to 
                carry out this title consistent with the Agreement.
            (2) Fabrics and yarns not available in commercial quantities 
        in the united states.--The President is authorized to proclaim 
        that a fabric or yarn is added to the list in Annex 3.25 of the 
        Agreement in an unrestricted quantity, as provided in article 
        3.25.4(e) of the Agreement.
            (3) Modifications.--
                    (A) In general.--Subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim modifications to the provisions proclaimed 
                under the

[[Page 119 STAT. 481]]

                authority of paragraph (1)(A), other than provisions of 
                chapters 50 through 63, as included in Annex 4.1 of the 
                Agreement.
                    (B) <<NOTE: Deadline.>> Additional proclamations.--
                Notwithstanding subparagraph (A), and subject to the 
                consultation and layover provisions of section 104, the 
                President may proclaim before the end of the 1-year 
                period beginning on the date of the enactment of this 
                Act, modifications to correct any typographical, 
                clerical, or other nonsubstantive technical error 
                regarding the provisions of chapters 50 through 63, as 
                included in Annex 4.1 of the Agreement.
            (4) Fabrics, yarns, or fibers not available in commercial 
        quantities in the cafta-dr countries.--
                    (A) In general.--Notwithstanding paragraph 3(A), the 
                list of fabrics, yarns, and fibers set out in Annex 3.25 
                of the Agreement may be modified as provided for in this 
                paragraph.
                    (B) Definitions.--In this paragraph:
                          (i) The term ``interested entity'' means the 
                      government of a CAFTA-DR country other than the 
                      United States, a potential or actual purchaser of 
                      a textile or apparel good, or a potential or 
                      actual supplier of a textile or apparel good.
                          (ii) All references to ``day'' and ``days'' 
                      exclude Saturdays, Sundays, and legal holidays.
                    (C) Requests to add fabrics, yarns, or fibers.--(i) 
                An interested entity may request the President to 
                determine that a fabric, yarn, or fiber is not available 
                in commercial quantities in a timely manner in the 
                CAFTA-DR countries and to add that fabric, yarn, or 
                fiber to the list in Annex 3.25 of the Agreement in a 
                restricted or unrestricted quantity.
                    (ii) After receiving a request under clause (i), the 
                President may determine whether--
                          (I) the fabric, yarn, or fiber is available in 
                      commercial quantities in a timely manner in the 
                      CAFTA-DR countries; or
                          (II) any interested entity objects to the 
                      request.
                    (iii) The President may, within the time periods 
                specified in clause (iv), proclaim that a fabric, yarn, 
                or fiber that is the subject of a request submitted 
                under clause (i) is added to the list in Annex 3.25 of 
                the Agreement in an unrestricted quantity, or in any 
                restricted quantity that the President may establish, if 
                the President determines under clause (ii) that--
                          (I) the fabric, yarn, or fiber is not 
                      available in commercial quantities in a timely 
                      manner in the CAFTA-DR countries; or
                          (II) no interested entity has objected to the 
                      request.
                    (iv) <<NOTE: Deadlines.>> The time periods within 
                which the President may issue a proclamation under 
                clause (iii) are--
                          (I) not later than 30 days after the date on 
                      which the request is submitted under clause (i); 
                      or
                          (II) not later than 44 days after the request 
                      is submitted, if the President determines, within 
                      30 days after the date on which the request is 
                      submitted, that

[[Page 119 STAT. 482]]

                      the President does not have sufficient information 
                      to make a determination under clause (ii).
                    (v) <<NOTE: Effective date. Federal Register, 
                publication.>> 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) <<NOTE: Deadline.>> Not later than 6 months 
                after proclaiming under clause (iii) that a fabric, 
                yarn, or fiber is added to the list in Annex 3.25 of the 
                Agreement in a restricted quantity, the President may 
                eliminate the restriction if the President determines 
                that the fabric, yarn, or fiber is not available in 
                commercial quantities in a timely manner in the CAFTA-DR 
                countries.
                    (D) <<NOTE: Effective dates.>> Deemed approval of 
                request.--If, after an interested entity submits a 
                request under subparagraph (C)(i), the President does 
                not, within the applicable time period specified in 
                subparagraph (C)(iv), make a determination under 
                subparagraph (C)(ii) regarding the request, the fabric, 
                yarn, or fiber that is the subject of the request shall 
                be considered to be added, in an unrestricted quantity, 
                to the list in Annex 3.25 of the Agreement beginning--
                          (i) 45 days after the date on which the 
                      request was submitted; or
                          (ii) 60 days after the date on which the 
                      request was submitted, if the President made a 
                      determination under subparagraph (C)(iv)(II).
                    (E) Requests to restrict or remove fabrics, yarns, 
                or fibers.--(i) Subject to clause (ii), an interested 
                entity may request the President to restrict the 
                quantity of, or remove from the list in Annex 3.25 of 
                the Agreement, any fabric, yarn, or fiber--
                          (I) that has been added to that list in an 
                      unrestricted quantity pursuant to paragraph (2) or 
                      subparagraph (C)(iii) or (D); or
                          (II) with respect to which the President has 
                      eliminated a restriction under subparagraph 
                      (C)(vi).
                    (ii) An interested entity may submit a request under 
                clause (i) at any time beginning 6 months after the date 
                of the action described in subclause (I) or (II) of that 
                clause.
                    (iii) <<NOTE: Deadline.>> Not later than 30 days 
                after the date on which a request under clause (i) is 
                submitted, the President may proclaim an action provided 
                for under clause (i) if the President determines that 
                the fabric, yarn, or fiber that is the subject of the 
                request is available in commercial quantities in a 
                timely manner in the CAFTA-DR countries.
                    (iv) <<NOTE: Effective date. Federal Register, 
                publication.>> A proclamation declared under clause 
                (iii) shall take effect no earlier than the date that is 
                6 months after the date on which the text of the 
                proclamation is published in the Federal Register.
                    (F) Procedures.--The President shall establish 
                proce- dures--
                          (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

[[Page 119 STAT. 483]]

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

SEC. 204. CUSTOMS USER FEES.

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

SEC. 205. <<NOTE: 19 USC 4034.>> RETROACTIVE APPLICATION FOR CERTAIN 
            LIQUIDATIONS AND RELIQUIDATIONS OF TEXTILE OR APPAREL GOODS.

    (a) In General.--Notwithstanding section 514 of the Tariff Act of 
1930 (19 U.S.C. 1514) or any other provision of law, and subject to 
subsection (c), an entry--
            (1) of a textile or apparel good--
                    (A) of a CAFTA-DR country that the United States 
                Trade Representative has designated as an eligible 
                country under subsection (b), and
                    (B) that would have qualified as an originating good 
                under section 203 if the good had been entered after the 
                date of entry into force of the Agreement for that 
                country,
            (2) that was made on or after January 1, 2004, and before 
        the date of the entry into force of the Agreement with respect 
        to that country, and
            (3) for which customs duties in excess of the applicable 
        rate of duty for that good set out in the Schedule of the United 
        States to Annex 3.3 of the Agreement were paid,

shall be liquidated or reliquidated at the applicable rate of duty for 
that good set out in the Schedule of the United States to Annex 3.3 of 
the Agreement, and the Secretary of the Treasury shall refund any excess 
customs duties paid with respect to such entry.
    (b) <<NOTE: Federal Register, publication.>> Eligible Country.--The 
United States Trade Representative shall determine, in accordance with 
article 3.20 of the Agreement, which CAFTA-DR countries are eligible 
countries for purposes of this section, and shall publish a list of all 
such countries in the Federal Register.

    (c) <<NOTE: Regulations.>> Requests.--Liquidation or reliquidation 
may be made under subsection (a) with respect to an entry of a textile 
or apparel good only if a request therefor is filed with the Bureau of 
Customs and Border Protection, within such period as the Bureau of 
Customs and Border Protection shall establish by regulation in 
consultation with the Secretary of the Treasury, that contains 
sufficient information to enable the Bureau of Customs and Border 
Protection--
            (1)(A) to locate the entry; or
            (B) to reconstruct the entry if it cannot be located; and
            (2) to determine that the good satisfies the conditions set 
        out in subsection (a).

    (d) Definition.--As used in this section, the term ``entry'' 
includes a withdrawal from warehouse for consumption.

[[Page 119 STAT. 484]]

SEC. 206. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF 
            ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.

    (a) Disclosure of Incorrect Information.--Section 592 of the Tariff 
Act of 1930 (19 U.S.C. 1592) is amended--
            (1) in subsection (c)--
                    (A) by redesignating paragraph (9) as paragraph 
                (10); and
                    (B) by inserting after paragraph (8) the following 
                new paragraph:
            ``(9) <<NOTE: Regulations.>> Prior disclosure regarding 
        claims under the dominican republic-central america-united 
        states free trade agreement.--An importer shall not be subject 
        to penalties under subsection (a) for making an incorrect claim 
        that a good qualifies as an originating good under section 203 
        of the Dominican Republic-Central America-United States Free 
        Trade Agreement Implementation Act if the importer, in 
        accordance with regulations issued by the Secretary of the 
        Treasury, promptly and voluntarily makes a corrected declaration 
        and pays any duties owing.''; and
            (2) by adding at the end the following new subsection:

    ``(h) False Certifications of Origin Under the Dominican Republic-
Central America-United States Free Trade Agreement.--
            ``(1) In general.--Subject to paragraph (2), it is unlawful 
        for any person to certify falsely, by fraud, gross negligence, 
        or negligence, in a CAFTA-DR certification of origin (as defined 
        in section 508(g)(1)(B) of this Act) that a good exported from 
        the United States qualifies as an originating good under the 
        rules of origin set out in section 203 of the Dominican 
        Republic-Central America-United States Free Trade Agreement 
        Implementation Act. <<NOTE: Applicability.>> The procedures and 
        penalties of this section that apply to a violation of 
        subsection (a) also apply to a violation of this subsection.
            ``(2) Prompt and voluntary disclosure of incorrect 
        information.--No penalty shall be imposed under this subsection 
        if, promptly after an exporter or producer that issued a CAFTA-
        DR certification of origin has reason to believe that such 
        certification contains or is based on incorrect information, the 
        exporter or producer voluntarily provides written notice of such 
        incorrect information to every person to whom the certification 
        was issued.
            ``(3) Exception.--A person may not be considered to have 
        violated paragraph (1) if--
                    ``(A) the information was correct at the time it was 
                provided in a CAFTA-DR certification of origin but was 
                later rendered incorrect due to a change in 
                circumstances; and
                    ``(B) the person promptly and voluntarily provides 
                written notice of the change in circumstances to all 
                persons to whom the person provided the 
                certification.''.

    (b) Denial of Preferential Tariff Treatment.--Section 514 of the 
Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding at the end the 
following new subsection:
    ``(h) Denial of Preferential Tariff Treatment Under the Dominican 
Republic-Central America-United States Free

[[Page 119 STAT. 485]]

Trade Agreement.--If the Bureau of Customs and Border Protection or the 
Bureau of Immigration and Customs Enforcement finds indications of a 
pattern of conduct by an importer, exporter, or producer of false or 
unsupported representations that goods qualify under the rules of origin 
set out in section 203 of the Dominican Republic-Central America-United 
States Free Trade Agreement Implementation Act, the Bureau of Customs 
and Border Protection, in accordance with regulations issued by the 
Secretary of the Treasury, may suspend preferential tariff treatment 
under the Dominican Republic-Central America-United States Free Trade 
Agreement to entries of identical goods covered by subsequent 
representations by that importer, exporter, or producer until the Bureau 
of Customs and Border Protection determines that representations of that 
person are in conformity with such section 203.''.

SEC. 207. RELIQUIDATION OF ENTRIES.

    Subsection (d) of section 520 of the Tariff Act of 1930 (19 U.S.C. 
1520(d)) is amended--
            (1) in the matter preceding paragraph (1), by striking ``or 
        section 202 of the United States-Chile Free Trade Agreement 
        Implementation Act'' and inserting ``, section 202 of the United 
        States-Chile Free Trade Agreement Implementation Act, or section 
        203 of the Dominican Republic-Central America-United States Free 
        Trade Agreement Implementation Act''; and
            (2) in paragraph (2), by inserting ``or certifications'' 
        after ``other certificates''.

SEC. 208. RECORDKEEPING REQUIREMENTS.

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

    ``(g) Certifications of Origin for Goods Exported Under the 
Dominican Republic-Central America-United States Free Trade Agreement.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Records and supporting documents.--The term 
                `records and supporting documents' means, with respect 
                to an exported good under paragraph (2), records and 
                documents related to the origin of the good, including--
                          ``(i) the purchase, cost, and value of, and 
                      payment for, the good;
                          ``(ii) the purchase, cost, and value of, and 
                      payment for, all materials, including indirect 
                      materials, used in the production of the good; and
                          ``(iii) the production of the good in the form 
                      in which it was exported.
                    ``(B) CAFTA-DR certification of origin.--The term 
                `CAFTA-DR certification of origin' means the 
                certification established under article 4.16 of the 
                Dominican Republic-Central America-United States Free 
                Trade Agreement that a good qualifies as an originating 
                good under such Agreement.
            ``(2) Exports to cafta-dr countries.--Any person who 
        completes and issues a CAFTA-DR certification of origin for a 
        good exported from the United States shall make, keep, and, 
        pursuant to rules and regulations promulgated by the

[[Page 119 STAT. 486]]

        Secretary of the Treasury, render for examination and inspection 
        all records and supporting documents related to the origin of 
        the good (including the certification or copies thereof).
            ``(3) Retention period.--Records and supporting documents 
        shall be kept by the person who issued a CAFTA-DR certification 
        of origin for at least 5 years after the date on which the 
        certification was issued.''; and
            (3) in subsection (h), as so redesignated--
                    (A) by inserting ``or (g)'' after ``(f)''; and
                    (B) by striking ``that subsection'' and inserting 
                ``either such subsection''.

SEC. 209. <<NOTE: 19 USC 4035.>> ENFORCEMENT RELATING TO TRADE IN 
            TEXTILE OR APPAREL GOODS.

    (a) Action During Verification.--
            (1) In general.--If the Secretary of the Treasury requests 
        the government of a CAFTA-DR country to conduct a verification 
        pursuant to article 3.24 of the Agreement for purposes of making 
        a determination under paragraph (2), the President may direct 
        the Secretary to take appropriate action described in subsection 
        (b) while the verification is being conducted.
            (2) Determination.--A determination under this paragraph is 
        a determination--
                    (A) that an exporter or producer in that country is 
                complying with applicable customs laws, regulations, and 
                procedures regarding trade in textile or apparel goods, 
                or
                    (B) that a claim that a textile or apparel good 
                exported or produced by such exporter or producer--
                          (i) qualifies as an originating good under 
                      section 203 of this Act, or
                          (ii) is a good of a CAFTA-DR country,
                is accurate.

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

[[Page 119 STAT. 487]]

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

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

[[Page 119 STAT. 488]]

    (e) Publication of Name of Person.--The Secretary may publish the 
name of any person that the Secretary has determined--
            (1) is engaged in intentional circumvention of applicable 
        laws, regulations, or procedures affecting trade in textile or 
        apparel goods; or
            (2) has failed to demonstrate that it produces, or is 
        capable of producing, textile or apparel goods.

SEC. 210. <<NOTE: 19 USC 4036.>> REGULATIONS.

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

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. <<NOTE: 19 USC 4051.>> DEFINITIONS.

    In this title:
            (1) CAFTA-DR article.--The term ``CAFTA-DR article'' means 
        an article that qualifies as an originating good under section 
        203(b).
            (2) CAFTA-DR textile or apparel article.--The term ``CAFTA-
        DR textile or apparel article'' means a textile or apparel good 
        (as defined in section 3(5)) that is a CAFTA-DR article.
            (3) De minimis supplying country.--
                    (A) Subject to subparagraph (B), the term ``de 
                minimis supplying country'' means a CAFTA-DR country 
                whose share of imports of the relevant CAFTA-DR article 
                into the United States does not exceed 3 percent of the 
                aggregate volume of imports of the relevant CAFTA-DR 
                article in the most recent 12-month period for which 
                data are available that precedes the filing of the 
                petition under section 311(a).
                    (B) A CAFTA-DR country shall not be considered to be 
                a de minimis supplying country if the aggregate share of 
                imports of the relevant CAFTA-DR article into the United 
                States of all CAFTA-DR countries that satisfy the 
                conditions of subparagraph (A) exceeds 9 percent of the 
                aggregate volume of imports of the relevant CAFTA-DR 
                article during the applicable 12-month period.
            (4) Relevant cafta-dr article.--The term ``relevant CAFTA-DR 
        article'' means the CAFTA-DR article with respect to which a 
        petition has been filed under section 311(a).

      Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. <<NOTE: 19 USC 4061.>> 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

[[Page 119 STAT. 489]]

Commission by an entity, including a trade association, firm, certified 
or recognized union, or group of workers, that is representative of an 
industry. The Commission shall transmit a copy of any petition filed 
under this subsection to the United States Trade Representative.
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the Commission, unless subsection (d) applies, 
shall promptly initiate an investigation to determine whether, as a 
result of the reduction or elimination of a duty provided for under the 
Agreement, a CAFTA-DR article is being imported into the United States 
in such increased quantities, in absolute terms or relative to domestic 
production, and under such conditions that imports of the CAFTA-DR 
article constitute a substantial cause of serious injury or threat 
thereof to the domestic industry producing an article that is like, or 
directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
            (1) Paragraphs (1)(B) and (3) of subsection (b).
            (2) Subsection (c).
            (3) Subsection (i).

    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any CAFTA-DR article if, 
after the date that the Agreement enters into force, import relief has 
been provided with respect to that CAFTA-DR article under this subtitle.

SEC. 312. <<NOTE: 19 USC 4062.>> COMMISSION ACTION ON PETITION.

    (a) <<NOTE: Deadline.>> Determination.--Not later than 120 days 
after the date on which an investigation is initiated under section 
311(b) with respect to a petition, the Commission shall make the 
determination required under that section. At that time, the Commission 
shall also determine whether any CAFTA-DR country is a de minimis 
supplying country.

    (b) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under this 
section as if such determinations and findings were made under section 
202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination 
Affirmative.--If the determination made by the Commission under 
subsection (a) with respect to imports of an article is affirmative, or 
if the President may consider a determination of the Commission to be an 
affirmative determination as provided for under paragraph (1) of section 
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)), the Commission 
shall find, and recommend to the President in the report required under 
subsection (d), the amount of import relief that is necessary to remedy 
or prevent the injury found by the Commission in the determination and 
to facilitate the efforts of the domestic industry to make a positive 
adjustment to import competition. The import relief recommended by the 
Commission under this subsection shall be limited to the relief 
described in section 313(c). Only those members of the Commission who 
voted in the affirmative under subsection (a) are eligible to vote on 
the proposed action to remedy or prevent the

[[Page 119 STAT. 490]]

injury found by the Commission. Members of the Commission who did not 
vote in the affirmative may submit, in the report required under 
subsection (d), separate views regarding what action, if any, should be 
taken to remedy or prevent the injury.
    (d) Report to President.--Not later than the date that is 30 days 
after the date on which a determination is made under subsection (a) 
with respect to an investigation, the Commission shall submit to the 
President a report that includes--
            (1) the determination made under subsection (a) and an 
        explanation of the basis for the determination;
            (2) if the determination under subsection (a) is 
        affirmative, any findings and recommendations for import relief 
        made under subsection (c) and an explanation of the basis for 
        each recommendation; and
            (3) any dissenting or separate views by members of the 
        Commission regarding the determination and recommendation 
        referred to in paragraphs (1) and (2).

    (e) <<NOTE: Federal Register, publication.>> Public Notice.--Upon 
submitting a report to the President under subsection (d), the 
Commission shall promptly make public such report (with the exception of 
information which the Commission determines to be confidential) and 
shall cause a summary thereof to be published in the Federal Register.

SEC. 313. <<NOTE: President. 19 USC 4063.>> PROVISION OF RELIEF.

    (a) <<NOTE: Deadline.>> In General.--Not later than the date that is 
30 days after the date on which the President receives the report of the 
Commission in which the Commission's determination under section 312(a) 
is affirmative, or which contains a determination under section 312(a) 
that the President considers to be affirmative under paragraph (1) of 
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 
President, subject to subsection (b), shall provide relief from imports 
of the article that is the subject of such determination to the extent 
that the President determines necessary to remedy or prevent the injury 
found by the Commission and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition.

    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the provision 
of the import relief will not provide greater economic and social 
benefits than costs.
    (c) Nature of Relief.--
            (1) In general.--The import relief that the President is 
        authorized to provide under this section with respect to imports 
        of an article is as follows:
                    (A) The suspension of any further reduction provided 
                for under Annex 3.3 of the Agreement in the duty imposed 
                on such article.
                    (B) An increase in the rate of duty imposed on such 
                article to a level that does not exceed the lesser of--
                          (i) the column 1 general rate of duty imposed 
                      under the HTS on like articles at the time the 
                      import relief is provided; or
                          (ii) the column 1 general rate of duty imposed 
                      under the HTS on like articles on the day before 
                      the date on which the Agreement enters into force.
            (2) Progressive liberalization.--If the period for which 
        import relief is provided under this section is greater than

[[Page 119 STAT. 491]]

        1 year, the President shall provide for the progressive 
        liberalization (described in article 8.2.3 of the Agreement) of 
        such relief at regular intervals during the period of its 
        application.

    (d) Period of Relief.--
            (1) In general.--Subject to paragraph (2), any import relief 
        that the President is authorized to provide under this section 
        may not, in the aggregate, be in effect for more than 4 years.
            (2) Extension.--
                    (A) In general.--If the initial period for any 
                import relief provided under this section is less than 4 
                years, the President, after receiving a determination 
                from the Commission under subparagraph (B) that is 
                affirmative, or which the President considers to be 
                affirmative under paragraph (1) of section 330(d) of the 
                Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), may extend 
                the effective period of any import relief provided under 
                this section, subject to the limitation under paragraph 
                (1), if the President determines that--
                          (i) the import relief continues to be 
                      necessary to remedy or prevent serious injury and 
                      to facilitate adjustment by the domestic industry 
                      to import competition; and
                          (ii) there is evidence that the industry is 
                      making a positive adjustment to import 
                      competition.
                    (B) <<NOTE: Deadline.>> Action by commission.--(i) 
                Upon a petition on behalf of the industry concerned that 
                is filed with the Commission not earlier than the date 
                which is 9 months, and not later than the date which is 
                6 months, before the date on which any action taken 
                under subsection (a) is to terminate, the Commission 
                shall conduct an investigation to determine whether 
                action under this section continues to be necessary to 
                remedy or prevent serious injury and whether there is 
                evidence that the industry is making a positive 
                adjustment to import competition.
                    (ii) <<NOTE: Federal Register, publication.>> 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) <<NOTE: Reports. Deadline.>> The Commission 
                shall transmit to the President a report on its 
                investigation and determination under this subparagraph 
                not later than 60 days before the action under 
                subsection (a) is to terminate, unless the President 
                specifies a different date.

    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article--
            (1) the rate of duty on that article after such termination 
        and on or before December 31 of the year in which such 
        termination occurs shall be the rate that, according to the 
        Schedule of the United States to Annex 3.3 of the Agreement 
        would have been in effect 1 year after the provision of relief 
        under subsection (a); and

[[Page 119 STAT. 492]]

            (2) the rate of duty for that article after December 31 of 
        the year in which termination occurs shall be, at the discretion 
        of the President, either--
                    (A) the applicable rate of duty for that article set 
                out in the Schedule of the United States to Annex 3.3 of 
                the Agreement; or
                    (B) the rate of duty resulting from the elimination 
                of the tariff in equal annual stages ending on the date 
                set out in the Schedule of the United States to Annex 
                3.3 of the Agreement for the elimination of the tariff.

    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on--
            (1) any article subject to import relief under chapter 1 of 
        title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.); or
            (2) imports of a CAFTA-DR article of a CAFTA-DR country that 
        is a de minimis supplying country with respect to that article.

SEC. 314. <<NOTE: 19 USC 4064.>> TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--Subject to subsection (b), no import relief may 
be provided under this subtitle after the date that is 10 years after 
the date on which the Agreement enters into force.
    (b) Exception.--If an article for which relief is provided under 
this subtitle is an article for which the period for tariff elimination, 
set out in the Schedule of the United States to Annex 3.3 of the 
Agreement, is greater than 10 years, no relief under this subtitle may 
be provided for that article after the date on which that period ends.

SEC. 315. <<NOTE: 19 USC 4065.>> COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 313 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

    Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is 
amended in the first sentence--
            (1) by striking ``and''; and
            (2) by inserting before the period at the end ``, and title 
        III of the Dominican Republic-Central America-United States Free 
        Trade Agreement Implementation Act''.

           Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF <<NOTE: President. 19 USC 4081.>> ACTION FOR 
            RELIEF.

    (a) In General.--A request under this subtitle for the purpose of 
adjusting to the obligations of the United States under the Agreement 
may be filed with the President by an interested party. Upon the filing 
of a request, the President shall review the request to determine, from 
information presented in the request, whether to commence consideration 
of the request.
    (b) Publication of Request.-- <<NOTE: Federal Register, 
publication. Notice.>> If the President determines that the request 
under subsection (a) provides the information necessary

[[Page 119 STAT. 493]]

for the request to be considered, the President shall cause to be 
published in the Federal Register a notice of commencement of 
consideration of the request, and notice seeking public comments 
regarding the request. The notice shall include a summary of the request 
and the dates by which comments and rebuttals must be received.

SEC. 322. <<NOTE: President. 19 USC 4082.>> DETERMINATION AND PROVISION 
            OF RELIEF.

    (a) Determination.--
            (1) In general.--If a positive determination is made under 
        section 321(b), the President shall determine whether, as a 
        result of the elimination of a duty under the Agreement, a 
        CAFTA-DR textile or apparel article of a specified CAFTA-DR 
        country is being imported into the United States in such 
        increased quantities, in absolute terms or relative to the 
        domestic market for that article, and under such conditions as 
        to cause serious damage, or actual threat thereof, to a domestic 
        industry producing an article that is like, or directly 
        competitive with, the imported article.
            (2) Serious damage.--In making a determination under 
        paragraph (1), the President--
                    (A) shall examine the effect of increased imports on 
                the domestic industry, as reflected in changes in such 
                relevant economic factors as output, productivity, 
                utilization of capacity, inventories, market share, 
                exports, wages, employment, domestic prices, profits, 
                and investment, none of which is necessarily decisive; 
                and
                    (B) shall not consider changes in technology or 
                consumer preference as factors supporting a 
                determination of serious damage or actual threat 
                thereof.
            (3) Deadline for determination.--The President shall make 
        the determination under paragraph (1) no later than 30 days 
        after the completion of any consultations held pursuant to 
        article 3.23.4 of the Agreement.

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

SEC. 323. <<NOTE: 19 USC 4083.>> PERIOD OF RELIEF.

    (a) In General.--Subject to subsection (b), any import relief that 
the President provides under subsection (b) of section 322 may not, in 
the aggregate, be in effect for more than 3 years.
    (b) Extension.--If the initial period for any import relief provided 
under section 322 is less than 3 years, the President may

[[Page 119 STAT. 494]]

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. <<NOTE: 19 USC 4084.>> ARTICLES EXEMPT FROM RELIEF.

    The President may not provide import relief under this subtitle with 
respect to any article if--
            (1) import relief previously has been provided under this 
        subtitle with respect to that article; or
            (2) the article is subject to import relief under--
                    (A) subtitle A; or
                    (B) chapter 1 of title II of the Trade Act of 1974.

SEC. 325. <<NOTE: 19 USC 4085.>> RATE AFTER TERMINATION OF IMPORT 
            RELIEF.

    When import relief under this subtitle is terminated with respect to 
an article, the rate of duty on that article shall be the rate that 
would have been in effect, but for the provision of such relief.

SEC. 326. <<NOTE: 19 USC 4086.>> TERMINATION OF RELIEF AUTHORITY.

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

SEC. 327. <<NOTE: 19 USC 4087.>> COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under this subtitle 
shall be treated as action taken under chapter 1 of title II of that 
Act.

SEC. 328. <<NOTE: 19 USC 4088.>> CONFIDENTIAL BUSINESS INFORMATION.

    The President may not release information received in connection 
with a review under this subtitle which the President considers to be 
confidential business information unless the party submitting the 
confidential business information had notice, at the time of submission, 
that such information would be released by the President, or such party 
subsequently consents to the release of the information. To the extent a 
party submits confidential business information, it shall also provide a 
nonconfidential version of the information in which the confidential 
business information is summarized or, if necessary, deleted.

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

SEC. 331. <<NOTE: 19 USC 4101.>> FINDINGS AND ACTION ON GOODS OF CAFTA-
            DR COUNTRIES.

    (a) <<NOTE: Reports.>> Effect of Imports.--If, in any investigation 
initiated under chapter 1 of title II of the Trade Act of 1974, the 
Commission makes an affirmative determination (or a determination which 
the President may treat as an affirmative determination under such 
chapter by reason of section 330(d) of the Tariff Act of 1930), the 
Commission shall also find (and report to the President at

[[Page 119 STAT. 495]]

the time such injury determination is submitted to the President) 
whether imports of the article of each CAFTA-DR country that qualify as 
originating goods under section 203(b) are a substantial cause of 
serious injury or threat thereof.

    (b) Presidential Determination Regarding Imports of CAFTA-DR 
Countries.--In determining the nature and extent of action to be taken 
under chapter 1 of title II of the Trade Act of 1974, the President may 
exclude from the action goods of a CAFTA-DR country with respect to 
which the Commission has made a negative finding under subsection (a).

                         TITLE IV--MISCELLANEOUS

SEC. 401. ELIGIBLE PRODUCTS.

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

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

    (a) Former Beneficiary Countries.--Section 212(a)(1) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended 
by adding at the end the following new subparagraph:
                    ``(F) The term `former beneficiary country' means a 
                country that ceases to be designated as a beneficiary 
                country under this title because the country has become 
                a party to a free trade agreement with the United 
                States.''.

    (b) <<NOTE: Effective dates.>> Countries Eligible for Designation as 
Beneficiary Countries.--Section 212(b) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2702(b)) is amended by striking from the list of 
countries eligible for designation as beneficiary countries--
            (1) <<NOTE: 19 USC 2702 note.>> ``Costa Rica'', effective on 
        the date the President terminates the designation of Costa Rica 
        as a beneficiary country pursuant to section 201(a)(3);
            (2) <<NOTE: 19 USC 2702 note.>> ``Dominican Republic'', 
        effective on the date the President terminates the designation 
        of the Dominican Republic as a beneficiary country pursuant to 
        section 201(a)(3);
            (3) <<NOTE: 19 USC 2702 note.>> ``El Salvador'', effective 
        on the date the President terminates the designation of El 
        Salvador as a beneficiary country pursuant to section 201(a)(3);
            (4) <<NOTE: 19 USC 2702 note.>> ``Guatemala'', effective on 
        the date the President terminates the designation of Guatemala 
        as a beneficiary country pursuant to section 201(a)(3);
            (5) <<NOTE: 19 USC 2702 note.>> ``Honduras'', effective on 
        the date the President terminates the designation of Honduras as 
        a beneficiary country pursuant to section 201(a)(3); and

[[Page 119 STAT. 496]]

            (6) <<NOTE: 19 USC 2702 note.>> ``Nicaragua'', effective on 
        the date the President terminates the designation of Nicaragua 
        as a beneficiary country pursuant to section 201(a)(3).

    (c) Materials of, or Processing in, Former Beneficiary Countries.--
Section 213(a)(1) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703(a)(1)) is amended by striking ``the Commonwealth of Puerto 
Rico and the United States Virgin Islands'' and inserting ``the 
Commonwealth of Puerto Rico, the United States Virgin Islands, and any 
former beneficiary country''.
    (d) Definitions and Special Rules.--Section 213(b)(5) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)(5)) is amended 
by adding at the end the following new subparagraphs:
                    ``(G) Former cbtpa beneficiary country.--The term 
                `former CBTPA beneficiary country' means a country that 
                ceases to be designated as a CBTPA beneficiary country 
                under this title because the country has become a party 
                to a free trade agreement with the United States.
                    ``(H) Articles that undergo production in a cbtpa 
                beneficiary country and a former cbtpa beneficiary 
                country.--(i) For purposes of determining the 
                eligibility of an article for preferential treatment 
                under paragraph (2) or (3), references in either such 
                paragraph, and in subparagraph (C) of this paragraph 
                to--
                          ``(I) a `CBTPA beneficiary country' shall be 
                      considered to include any former CBTPA beneficiary 
                      country, and
                          ``(II) `CBTPA beneficiary countries' shall be 
                      considered to include former CBTPA beneficiary 
                      countries,
                if the article, or a good used in the production of the 
                article, undergoes production in a CBTPA beneficiary 
                country.
                    ``(ii) An article that is eligible for preferential 
                treatment under clause (i) shall not be ineligible for 
                such treatment because the article is imported directly 
                from a former CBTPA beneficiary country.
                    ``(iii) Notwithstanding clauses (i) and (ii), an 
                article that is a good of a former CBTPA beneficiary 
                country for purposes of section 304 of the Tariff Act of 
                1930 (19 U.S.C. 1304) or section 334 of the Uruguay 
                Round Agreements Act (19 U.S.C. 3592), as the case may 
                be, shall not be eligible for preferential treatment 
                under paragraph (2) or (3), unless--
                          ``(I) it is an article that is a good of the 
                      Dominican Republic under either such section 304 
                      or 334; and
                          ``(II) the article, or a good used in the 
                      production of the article, undergoes production in 
                      Haiti.''.

SEC. 403. <<NOTE: 19 USC 4111.>> PERIODIC REPORTS AND MEETINGS ON LABOR 
            OBLIGATIONS AND LABOR CAPACITY-BUILDING PROVISIONS.

    (a) Reports to Congress.--
            (1) <<NOTE: President.>> In general.--Not later than the end 
        of the 2-year period beginning on the date the Agreement enters 
        into force, and not later than the end of each 2-year period 
        thereafter during the succeeding 14-year period, the President 
        shall report to the Congress on the progress made by the CAFTA-
        DR countries in--

[[Page 119 STAT. 497]]

                    (A) implementing Chapter Sixteen and Annex 16.5 of 
                the Agreement; and
                    (B) implementing the White Paper.
            (2) White paper.--In this section, the term ``White Paper'' 
        means the report of April 2005 of the Working Group of the Vice 
        Ministers Responsible for Trade and Labor in the Countries of 
        Central America and the Dominican Republic entitled ``The Labor 
        Dimension in Central America and the Dominican Republic - 
        Building on Progress: Strengthening Compliance and Enhancing 
        Capacity''.
            (3) Contents of reports.--Each report under paragraph (1) 
        shall include the following:
                    (A) A description of the progress made by the Labor 
                Cooperation and Capacity Building Mechanism established 
                by article 16.5 and Annex 16.5 of the Agreement, and the 
                Labor Affairs Council established by article 16.4 of the 
                Agreement, in achieving their stated goals, including a 
                description of the capacity-building projects 
                undertaken, funds received, and results achieved, in 
                each CAFTA-DR country.
                    (B) Recommendations on how the United States can 
                facilitate full implementation of the recommendations 
                contained in the White Paper.
                    (C) A description of the work done by the CAFTA-DR 
                countries with the International Labor Organization to 
                implement the recommendations contained in the White 
                Paper, and the efforts of the CAFTA-DR countries with 
                international organizations, through the Labor 
                Cooperation and Capacity Building Mechanism referred to 
                in subparagraph (A), to advance common commitments 
                regarding labor matters.
                    (D) A summary of public comments received on--
                          (i) capacity-building efforts by the United 
                      States envisaged by article 16.5 and Annex 16.5 of 
                      the Agreement;
                          (ii) efforts by the United States to 
                      facilitate full implementation of the White Paper 
                      recommendations; and
                          (iii) the efforts made by the CAFTA-DR 
                      countries to comply with article 16.5 and Annex 
                      16.5 of the Agreement and to fully implement the 
                      White Paper recommendations, including the 
                      progress made by the CAFTA-DR countries in 
                      affording to workers internationally-recognized 
                      worker rights through improved capacity.
            (4) <<NOTE: President.>> Solicitation of public comments.--
        The President shall establish a mechanism to solicit public 
        comments for purposes of paragraph (3)(D).

    (b) Periodic Meetings of Secretary of Labor With Labor Ministers of 
CAFTA-DR Countries.--
            (1) Periodic meetings.--The Secretary of Labor should take 
        the necessary steps to meet periodically with the labor 
        ministers of the CAFTA-DR countries to discuss--
                    (A) the operation of the labor provisions of the 
                Agreement;

[[Page 119 STAT. 498]]

                    (B) progress on the commitments made by the CAFTA-DR 
                countries to implement the recommendations contained in 
                the White Paper;
                    (C) the work of the International Labor Organization 
                in the CAFTA-DR countries, and other cooperative 
                efforts, to afford to workers internationally-recognized 
                worker rights; and
                    (D) such other matters as the Secretary of Labor and 
                the labor ministers consider appropriate.
            (2) <<NOTE: President.>> Inclusion in biennial reports.--The 
        President shall include in each report under subsection (a), as 
        the President deems appropriate, summaries of the meetings held 
        pursuant to paragraph (1).

    Approved August 2, 2005.

LEGISLATIVE HISTORY--H.R. 3045 (S. 1307):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-182 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 151 (2005):
            July 27, considered and passed House.
            July 28, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 41 (2005):
            Aug. 2, Presidential remarks.

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