PUBLIC LAW 109–53—AUG. 2, 2005

DOMINICAN REPUBLIC–CENTRAL AMERICA–

UNITED STATES FREE TRADE AGREEMENT

IMPLEMENTATION ACT

119 STAT. 462 PUBLIC LAW 109–53—AUG. 2, 2005

Public Law 109–53

109th Congress

An Act

To implement the Dominican Republic-Central America-United States Free Trade

Agreement.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; 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.

Dominican

Republic-Central

America-United

States Free

Trade Agreement

Implementation

Act.

19 USC 4001

note.

Aug. 2, 2005

[H.R. 3045]

PUBLIC LAW 109–53—AUG. 2, 2005 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 capacitybuilding provisions.

SEC. 2. 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. 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.

19 USC 4002.

19 USC 4001.

119 STAT. 464 PUBLIC LAW 109–53—AUG. 2, 2005

(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. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.

(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRA- TIVE 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. 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

19 USC 4012.

19 USC 4011.

PUBLIC LAW 109–53—AUG. 2, 2005 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 REM- EDIES.—No person other than the United States—

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

Agreement or by virtue of congressional approval thereof; or

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

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

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

action or inaction is inconsistent with the Agreement.

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO

FORCE AND INITIAL REGULATIONS.

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

(A) the President may proclaim such actions, and

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

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

provisions under section 104 may not take effect before the

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

is published in the Federal Register.

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

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

actions is waived to the extent that the application of such

restriction would prevent the taking effect on the date the

Agreement enters into force of any action proclaimed under

this section.

(b) INITIAL REGULATIONS.—Initial regulations necessary or

appropriate to carry out the actions required by or authorized

under this Act or proposed in the statement of administrative

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

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

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

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

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

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

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

If a provision of this Act provides that the implementation

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

President.

19 USC 4014.

Deadlines.

Federal Register,

publication.

19 USC 4013.

119 STAT. 466 PUBLIC LAW 109–53—AUG. 2, 2005

consultation and layover requirements of this section, such action

may be proclaimed only if—

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

(A) the appropriate advisory committees established

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

2155); and

(B) the Commission;

(2) the President has submitted to the Committee on

Finance of the Senate and the Committee on Ways and Means

of the House of Representatives a report that sets forth—

(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. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

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

is authorized to establish or designate within the Department of

Commerce an office that shall be responsible for providing administrative assistance to panels established under chapter 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. ARBITRATION OF CLAIMS.

The United States is authorized to resolve any claim against

the United States covered by article 10.16.1(a)(i)(C) or article

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

Dispute Settlement procedures set forth in section B of chapter

10 of the Agreement.

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

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

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.

19 USC 4001

note.

19 USC 4016.

President.

19 USC 4015.

Reports.

PUBLIC LAW 109–53—AUG. 2, 2005 119 STAT. 467

TITLE II—CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

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

(1) PROCLAMATION AUTHORITY.—The President may proclaim—

(A) such modifications or continuation of any duty,

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

or

(C) such additional duties,

as the President determines to be necessary or appropriate

to carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27,

and 3.28, and Annexes 3.3, 3.27, and 3.28 of the Agreement.

(2) EFFECT ON GSP STATUS.—Notwithstanding section

502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the

President shall 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) 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.

President.

President.

19 USC 4031.

119 STAT. 468 PUBLIC LAW 109–53—AUG. 2, 2005

SEC. 202. 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) 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

Deadline.

19 USC 4032.

PUBLIC LAW 109–53—AUG. 2, 2005 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. 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—

19 USC 4033.

119 STAT. 470 PUBLIC LAW 109–53—AUG. 2, 2005

(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 builddown method:

AV–VNM RVC = ———— × 100 AV

(B) DEFINITIONS.—In subparagraph (A):

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

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

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

of the good.

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

nonoriginating materials 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 selfproduced.

(3) BUILD-UP METHOD.—

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

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

VOM

RVC = ———— × 100 AV

(B) DEFINITIONS.—In subparagraph (A):

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

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

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

of the good.

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

originating materials that are acquired or self-produced, and used by the producer in the production

of the good.

(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE GOODS.—

PUBLIC LAW 109–53—AUG. 2, 2005 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 = ———— × 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

119 STAT. 472 PUBLIC LAW 109–53—AUG. 2, 2005

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

PUBLIC LAW 109–53—AUG. 2, 2005 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.

119 STAT. 474 PUBLIC LAW 109–53—AUG. 2, 2005

(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.

PUBLIC LAW 109–53—AUG. 2, 2005 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.

119 STAT. 476 PUBLIC LAW 109–53—AUG. 2, 2005

(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) 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—

Applicability.

PUBLIC LAW 109–53—AUG. 2, 2005 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

119 STAT. 478 PUBLIC LAW 109–53—AUG. 2, 2005

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

PUBLIC LAW 109–53—AUG. 2, 2005 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.

119 STAT. 480 PUBLIC LAW 109–53—AUG. 2, 2005

(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

PUBLIC LAW 109–53—AUG. 2, 2005 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) 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) 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

Deadlines.

Deadline.

119 STAT. 482 PUBLIC LAW 109–53—AUG. 2, 2005

the President does not have sufficient information to

make a determination under clause (ii).

(v) 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) 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) 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) 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) 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 procedures—

(i) governing the submission of a request under

subparagraphs (C) and (E); and

(ii) providing an opportunity for interested entities

to submit comments and supporting evidence before

Effective date.

Federal Register,

publication.

Deadline.

Effective dates.

Deadline.

Effective date.

Federal Register,

publication.

PUBLIC LAW 109–53—AUG. 2, 2005 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 AmericaUnited 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. 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) 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) 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.

Regulations.

Federal Register,

publication.

19 USC 4034.

119 STAT. 484 PUBLIC LAW 109–53—AUG. 2, 2005

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) 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 RepublicCentral America-United States Free Trade Agreement

Implementation Act. The procedures and penalties of this section that apply to a violation of subsection (a) also apply to

a violation of this subsection.

‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF INCORRECT

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

a 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

Applicability.

Regulations.

PUBLIC LAW 109–53—AUG. 2, 2005 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 RepublicCentral 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

119 STAT. 486 PUBLIC LAW 109–53—AUG. 2, 2005

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. 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

19 USC 4035.

PUBLIC LAW 109–53—AUG. 2, 2005 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.

119 STAT. 488 PUBLIC LAW 109–53—AUG. 2, 2005

(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. 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. 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. 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

19 USC 4061.

19 USC 4051.

19 USC 4036.

PUBLIC LAW 109–53—AUG. 2, 2005 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. COMMISSION ACTION ON PETITION.

(a) 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

Deadline.

19 USC 4062.

119 STAT. 490 PUBLIC LAW 109–53—AUG. 2, 2005

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) 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. PROVISION OF RELIEF.

(a) 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

Deadline.

President.

19 USC 4063.

Federal Register,

publication.

PUBLIC LAW 109–53—AUG. 2, 2005 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) 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) 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) 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

Reports.

Deadline.

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publication.

Deadline.

119 STAT. 492 PUBLIC LAW 109–53—AUG. 2, 2005

(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. 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. 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 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.—If the President determines that

the request under subsection (a) provides the information necessary

Federal Register,

publication.

Notice.

President.

19 USC 4081.

19 USC 4065.

19 USC 4064.

PUBLIC LAW 109–53—AUG. 2, 2005 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. 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. 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

19 USC 4083.

President.

19 USC 4082.

119 STAT. 494 PUBLIC LAW 109–53—AUG. 2, 2005

extend the effective period of any import relief provided under

that section, subject to the limitation set forth in subsection (a),

if the President determines that—

(1) the import relief continues to be necessary to remedy

or prevent serious damage and to facilitate adjustment by the

domestic industry to import competition; and

(2) there is evidence that the industry is making a positive

adjustment to import competition.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

The President may not provide import relief under this subtitle

with respect to 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. 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. 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. 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. 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. FINDINGS AND ACTION ON GOODS OF CAFTA–DR COUNTRIES.

(a) 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

Reports.

19 USC 4101.

19 USC 4088.

19 USC 4087.

19 USC 4086.

19 USC 4085.

19 USC 4084.

PUBLIC LAW 109–53—AUG. 2, 2005 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) 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) ‘‘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) ‘‘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) ‘‘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) ‘‘Guatemala’’, effective on the date the President terminates the designation of Guatemala as a beneficiary country

pursuant to section 201(a)(3);

(5) ‘‘Honduras’’, effective on the date the President terminates the designation of Honduras as a beneficiary country

pursuant to section 201(a)(3); and

19 USC 2702

note.

19 USC 2702

note.

19 USC 2702

note.

19 USC 2702

note.

19 USC 2702

note.

Effective dates.

119 STAT. 496 PUBLIC LAW 109–53—AUG. 2, 2005

(6) ‘‘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. PERIODIC REPORTS AND MEETINGS ON LABOR OBLIGATIONS

AND LABOR CAPACITY-BUILDING PROVISIONS.

(a) REPORTS TO CONGRESS.—

(1) 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—

President.

19 USC 4111.

19 USC 2702

note.

PUBLIC LAW 109–53—AUG. 2, 2005 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) 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;

President.

119 STAT. 498 PUBLIC LAW 109–53—AUG. 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.

Æ

(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) 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.

President.