II 

109TH CONGRESS 

1ST SESSION S. 1307 

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

Trade Agreement. 

IN THE SENATE OF THE UNITED STATES 

JUNE 23, 2005 

Mr. GRASSLEY (for himself, Mr. FRIST, and Mr. REID) (by request) introduced the following bill; which was read twice and referred to the Committee on Finance pursuant to section 2103(b)(3) of Public Law 107– 

210 

A BILL 

To implement the Dominican Republic-Central AmericaUnited States Free Trade Agreement. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION. 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Dominican Republic-Central America-United States Free 

6 Trade Agreement Implementation Act’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 
2 

•S 1307 IS 

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. 

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 
3 

•S 1307 IS 

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. 

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to approve and implement the Free Trade 

4 Agreement between the United States, Costa Rica, 

5 the Dominican Republic, El Salvador, Guatemala, 

6 Honduras, and Nicaragua entered into under the au7 thority of section 2103(b) of the Bipartisan Trade 

8 Promotion Authority Act of 2002 (19 U.S.C. 

9 3803(b)); 

10 (2) to strengthen and develop economic rela11 tions between the United States, Costa Rica, the 

12 Dominican Republic, El Salvador, Guatemala, Hon13 duras, and Nicaragua for their mutual benefit; 

14 (3) to establish free trade between the United 

15 States, Costa Rica, the Dominican Republic, El Sal16 vador, Guatemala, Honduras, and Nicaragua 

17 through the reduction and elimination of barriers to 

18 trade in goods and services and to investment; and 

19 (4) to lay the foundation for further coopera20 tion to expand and enhance the benefits of the 

21 Agreement. 

22 SEC. 3. DEFINITIONS. 

23 In this Act: 
4 

•S 1307 IS 

1 (1) AGREEMENT.—The term ‘‘Agreement’’ 

2 means the Dominican Republic-Central America3 United States Free Trade Agreement approved by 

4 the Congress under section 101(a)(1). 

5 (2) CAFTA–DR COUNTRY.—Except as pro6 vided in section 203, the term ‘‘CAFTA–DR coun7 try’’ means— 

8 (A) Costa Rica, for such time as the 

9 Agreement is in force between the United 

10 States and Costa Rica; 

11 (B) the Dominican Republic, for such time 

12 as the Agreement is in force between the 

13 United States and the Dominican Republic; 

14 (C) El Salvador, for such time as the 

15 Agreement is in force between the United 

16 States and El Salvador; 

17 (D) Guatemala, for such time as the 

18 Agreement is in force between the United 

19 States and Guatemala; 

20 (E) Honduras, for such time as the Agree21 ment is in force between the United States and 

22 Honduras; and 

23 (F) Nicaragua, for such time as the Agree24 ment is in force between the United States and 

25 Nicaragua. 
5 

•S 1307 IS 

1 (3) COMMISSION.—The term ‘‘Commission’’ 

2 means the United States International Trade Com3 mission. 

4 (4) HTS.—The term ‘‘HTS’’ means the Har5 monized Tariff Schedule of the United States. 

6 (5) TEXTILE OR APPAREL GOOD.—The term 

7 ‘‘textile or apparel good’’ means a good listed in the 

8 Annex to the Agreement on Textiles and Clothing 

9 referred to in section 101(d)(4) of the Uruguay 

10 Round Agreements Act (19 U.S.C. 3511(d)(4)), 

11 other than a good listed in Annex 3.29 of the Agree12 ment. 

13 TITLE I—APPROVAL OF, AND 

14 GENERAL PROVISIONS RE15 LATING TO, THE AGREEMENT 

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

17 AGREEMENT. 

18 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

19 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

20 the Bipartisan Trade Promotion Authority Act of 2002 

21 (19 U.S.C. 3805) and section 151 of the Trade Act of 

22 1974 (19 U.S.C. 2191), the Congress approves— 

23 (1) the Dominican Republic-Central America24 United States Free Trade Agreement entered into 

25 on August 5, 2004, with the Governments of Costa 
6 

•S 1307 IS 

1 Rica, the Dominican Republic, El Salvador, Guate2 mala, Honduras, and Nicaragua, and submitted to 

3 the Congress on ll, 2005; and 

4 (2) the statement of administrative action pro5 posed to implement the Agreement that was sub6 mitted to the Congress on ll, 2005. 

7 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

8 AGREEMENT.—At such time as the President determines 

9 that countries listed in subsection (a)(1) have taken meas10 ures necessary to comply with the provisions of the Agree11 ment that are to take effect on the date on which the 

12 Agreement enters into force, the President is authorized 

13 to provide for the Agreement to enter into force with re14 spect to those countries that provide for the Agreement 

15 to enter into force for them. 

16 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

17 STATES AND STATE LAW. 

18 (a) RELATIONSHIP OF AGREEMENT TO UNITED

19 STATES LAW.— 

20 (1) UNITED STATES LAW TO PREVAIL IN CON21 FLICT.—No provision of the Agreement, nor the ap22 plication of any such provision to any person or cir23 cumstance, which is inconsistent with any law of the 

24 United States shall have effect. 
7 

•S 1307 IS 

1 (2) CONSTRUCTION.—Nothing in this Act shall 

2 be construed— 

3 (A) to amend or modify any law of the 

4 United States, or 

5 (B) to limit any authority conferred under 

6 any law of the United States, 

7 unless specifically provided for in this Act. 

8 (b) RELATIONSHIP OF AGREEMENT TO STATE

9 LAW.— 

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

11 application thereof, may be declared invalid as to 

12 any person or circumstance on the ground that the 

13 provision or application is inconsistent with the 

14 Agreement, except in an action brought by the 

15 United States for the purpose of declaring such law 

16 or application invalid. 

17 (2) DEFINITION OF STATE LAW.—For purposes 

18 of this subsection, the term ‘‘State law’’ includes— 

19 (A) any law of a political subdivision of a 

20 State; and 

21 (B) any State law regulating or taxing the 

22 business of insurance. 

23 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI24 VATE REMEDIES.—No person other than the United 

25 States— 
8 

•S 1307 IS 

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

2 under the Agreement or by virtue of congressional 

3 approval thereof; or 

4 (2) may challenge, in any action brought under 

5 any provision of law, any action or inaction by any 

6 department, agency, or other instrumentality of the 

7 United States, any State, or any political subdivision 

8 of a State, on the ground that such action or inac9 tion is inconsistent with the Agreement. 

10 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 

11 ENTRY INTO FORCE AND INITIAL REGULA12 TIONS. 

13 (a) IMPLEMENTING ACTIONS.— 

14 (1) PROCLAMATION AUTHORITY.—After the 

15 date of the enactment of this Act— 

16 (A) the President may proclaim such ac17 tions, and 

18 (B) other appropriate officers of the 

19 United States Government may issue such reg20 ulations, 

21 as may be necessary to ensure that any provision of 

22 this Act, or amendment made by this Act, that takes 

23 effect on the date the Agreement enters into force 

24 is appropriately implemented on such date, but no 

25 such proclamation or regulation may have an effec-
9 

•S 1307 IS 

1 tive date earlier than the date the Agreement enters 

2 into force. 

3 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

4 ACTIONS.—Any action proclaimed by the President 

5 under the authority of this Act that is not subject 

6 to the consultation and layover provisions under sec7 tion 104 may not take effect before the 15th day 

8 after the date on which the text of the proclamation 

9 is published in the Federal Register. 

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

11 day restriction contained in paragraph (2) on the 

12 taking effect of proclaimed actions is waived to the 

13 extent that the application of such restriction would 

14 prevent the taking effect on the date the Agreement 

15 enters into force of any action proclaimed under this 

16 section. 

17 (b) INITIAL REGULATIONS.—Initial regulations nec18 essary or appropriate to carry out the actions required by 

19 or authorized under this Act or proposed in the statement 

20 of administrative action submitted under section 

21 101(a)(2) to implement the Agreement shall, to the max22 imum extent feasible, be issued within 1 year after the 

23 date on which the Agreement enters into force. In the case 

24 of any implementing action that takes effect on a date 

25 after the date on which the Agreement enters into force, 
10 

•S 1307 IS 

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

2 maximum extent feasible, be issued within 1 year after 

3 such effective date. 

4 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 

5 AND EFFECTIVE DATE OF, PROCLAIMED AC6 TIONS. 

7 If a provision of this Act provides that the implemen8 tation of an action by the President by proclamation is 

9 subject to the consultation and layover requirements of 

10 this section, such action may be proclaimed only if— 

11 (1) the President has obtained advice regarding 

12 the proposed action from— 

13 (A) the appropriate advisory committees 

14 established under section 135 of the Trade Act 

15 of 1974 (19 U.S.C. 2155); and 

16 (B) the Commission; 

17 (2) the President has submitted to the Com18 mittee on Finance of the Senate and the Committee 

19 on Ways and Means of the House of Representatives 

20 a report that sets forth— 

21 (A) the action proposed to be proclaimed 

22 and the reasons therefor; and 

23 (B) the advice obtained under paragraph 

24 (1); 
11 

•S 1307 IS 

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

2 the first day on which the requirements set forth in 

3 paragraphs (1) and (2) have been met has expired; 

4 and 

5 (4) the President has consulted with such Com6 mittees regarding the proposed action during the pe7 riod referred to in paragraph (3). 

8 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO9 CEEDINGS. 

10 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.— 

11 The President is authorized to establish or designate with12 in the Department of Commerce an office that shall be 

13 responsible for providing administrative assistance to pan14 els established under chapter 20 of the Agreement. The 

15 office may not be considered to be an agency for purposes 

16 of section 552 of title 5, United States Code. 

17 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated for each fiscal year after 

19 fiscal year 2005 to the Department of Commerce such 

20 sums as may be necessary for the establishment and oper21 ations of the office established or designated under sub22 section (a) and for the payment of the United States share 

23 of the expenses of panels established under chapter 20 of 

24 the Agreement. 
12 

•S 1307 IS 

1 SEC. 106. ARBITRATION OF CLAIMS. 

2 The United States is authorized to resolve any claim 

3 against the United States covered by article 

4 10.16.1(a)(i)(C) or article 10.16.1(b)(i)(C) of the Agree5 ment, pursuant to the Investor-State Dispute Settlement 

6 procedures set forth in section B of chapter 10 of the 

7 Agreement. 

8 SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 

9 (a) EFFECTIVE DATES.—Except as provided in sub10 section (b), the provisions of this Act and the amendments 

11 made by this Act take effect on the date the Agreement 

12 enters into force. 

13 (b) EXCEPTIONS.—Sections 1 through 3 and this 

14 title take effect on the date of the enactment of this Act. 

15 (c) TERMINATION OF CAFTA–DR STATUS.—During 

16 any period in which a country ceases to be a CAFTA– 

17 DR country, the provisions of this Act (other than this 

18 subsection) and the amendments made by this Act shall 

19 cease to have effect with respect to that country. 

20 (d) TERMINATION OF THE AGREEMENT.—On the 

21 date on which the Agreement ceases to be in force with 

22 respect to the United States, the provisions of this Act 

23 (other than this subsection) and the amendments made 

24 by this Act shall cease to have effect. 
13 

•S 1307 IS 

1 TITLE II—CUSTOMS PROVISIONS 

2 SEC. 201. TARIFF MODIFICATIONS. 

3 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

4 AGREEMENT.— 

5 (1) PROCLAMATION AUTHORITY.—The Presi6 dent may proclaim— 

7 (A) such modifications or continuation of 

8 any duty, 

9 (B) such continuation of duty-free or ex10 cise treatment, or 

11 (C) such additional duties, 

12 as the President determines to be necessary or ap13 propriate to carry out or apply articles 3.3, 3.5, 3.6, 

14 3.21, 3.26, 3.27, and 3.28, and Annexes 3.3, 3.27, 

15 and 3.28 of the Agreement. 

16 (2) EFFECT ON GSP STATUS.—Notwithstanding 

17 section 502(a)(1) of the Trade Act of 1974 (19 

18 U.S.C. 2462(a)(1)), the President shall terminate 

19 the designation of each CAFTA–DR country as a 

20 beneficiary developing country for purposes of title V 

21 of the Trade Act of 1974 on the date the Agreement 

22 enters into force with respect to that country. 

23 (3) EFFECT ON CBERA STATUS.— 

24 (A) IN GENERAL.—Notwithstanding sec25 tion 212(a) of the Caribbean Basin Economic 
14 

•S 1307 IS 

1 Recovery Act (19 U.S.C. 2702(a)), the Presi2 dent shall terminate the designation of each 

3 CAFTA–DR country as a beneficiary country 

4 for purposes of that Act on the date the Agree5 ment enters into force with respect to that 

6 country. 

7 (B) EXCEPTION.—Notwithstanding sub8 paragraph (A), each such country shall be con9 sidered a beneficiary country under section 

10 212(a) of the Caribbean Basin Economic Re11 covery Act, for purposes of— 

12 (i) sections 771(7)(G)(ii)(III) and 

13 771(7)(H) of the Tariff Act of 1930 (19 

14 U.S.C. 1677(7)(G)(ii)(III) and 

15 1677(7)(H)); 

16 (ii) the duty-free treatment provided 

17 under paragraph 12 of Appendix I of the 

18 General Notes to the Schedule of the 

19 United States to Annex 3.3 of the Agree20 ment; and 

21 (iii) section 274(h)(6)(B) of the Inter22 nal Revenue Code of 1986. 

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

24 consultation and layover provisions of section 104, the 

25 President may proclaim— 
15 

•S 1307 IS 

1 (1) such modifications or continuation of any 

2 duty, 

3 (2) such modifications as the United States 

4 may agree to with a CAFTA–DR country regarding 

5 the staging of any duty treatment set forth in Annex 

6 3.3 of the Agreement, 

7 (3) such continuation of duty-free or excise 

8 treatment, or 

9 (4) such additional duties, 

10 as the President determines to be necessary or appropriate 

11 to maintain the general level of reciprocal and mutually 

12 advantageous concessions provided for by the Agreement. 

13 (c) CONVERSION TO AD VALOREM RATES.—For pur14 poses of subsections (a) and (b), with respect to any good 

15 for which the base rate in the Schedule of the United 

16 States to Annex 3.3 of the Agreement is a specific or com17 pound rate of duty, the President may substitute for the 

18 base rate an ad valorem rate that the President deter19 mines to be equivalent to the base rate. 

20 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL21 TURAL GOODS. 

22 (a) GENERAL PROVISIONS.— 

23 (1) APPLICABILITY OF SUBSECTION.—This sub24 section applies to additional duties assessed under 

25 subsection (b). 
16 

•S 1307 IS 

1 (2) APPLICABLE NTR (MFN) RATE OF DUTY.— 

2 For purposes of subsection (b), the term ‘‘applicable 

3 NTR (MFN) rate of duty’’ means, with respect to 

4 a safeguard good, a rate of duty that is the lesser 

5 of— 

6 (A) the column 1 general rate of duty that 

7 would, at the time the additional duty is im8 posed under subsection (b), apply to a good 

9 classifiable in the same 8-digit subheading of 

10 the HTS as the safeguard good; or 

11 (B) the column 1 general rate of duty that 

12 would, on the day before the date on which the 

13 Agreement enters into force, apply to a good 

14 classifiable in the same 8-digit subheading of 

15 the HTS as the safeguard good. 

16 (3) SCHEDULE RATE OF DUTY.—For purposes 

17 of subsection (b), the term ‘‘schedule rate of duty’’ 

18 means, with respect to a safeguard good, the rate of 

19 duty for that good that is set out in the Schedule 

20 of the United States to Annex 3.3 of the Agreement. 

21 (4) SAFEGUARD GOOD.—In this section, the 

22 term ‘‘safeguard good’’ means a good— 

23 (A) that is included in the Schedule of the 

24 United States to Annex 3.15 of the Agreement; 
17 

•S 1307 IS 

1 (B) that qualifies as an originating good 

2 under section 203, except that operations per3 formed in or material obtained from the United 

4 States shall be considered as if the operations 

5 were performed in, and the material was ob6 tained from, a country that is not a party to 

7 the Agreement; and 

8 (C) for which a claim for preferential tariff 

9 treatment under the Agreement has been made. 

10 (5) EXCEPTIONS.—No additional duty shall be 

11 assessed on a good under subsection (b) if, at the 

12 time of entry, the good is subject to import relief 

13 under— 

14 (A) subtitle A of title III of this Act; or 

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

16 of 1974 (19 U.S.C. 2251 et seq.). 

17 (6) TERMINATION.—The assessment of an ad18 ditional duty on a good under subsection (b) shall 

19 cease to apply to that good on the date on which 

20 duty-free treatment must be provided to that good 

21 under the Schedule of the United States to Annex 

22 3.3 of the Agreement. 

23 (7) NOTICE.—Not later than 60 days after the 

24 Secretary of the Treasury first assesses an addi25 tional duty in a calendar year on a good under sub-
18 

•S 1307 IS 

1 section (b), the Secretary shall notify the country 

2 whose good is subject to the additional duty in writ3 ing of such action and shall provide to that country 

4 data supporting the assessment of the additional 

5 duty. 

6 (b) ADDITIONAL DUTIES ON SAFEGUARD GOODS.— 

7 (1) IN GENERAL.—In addition to any duty pro8 claimed under subsection (a) or (b) of section 201, 

9 and subject to subsection (a), the Secretary of the 

10 Treasury shall assess a duty, in the amount deter11 mined under paragraph (2), on a safeguard good of 

12 a CAFTA–DR country imported into the United 

13 States in a calendar year if the Secretary determines 

14 that, prior to such importation, the total volume of 

15 that safeguard good of such country that is imported 

16 into the United States in that calendar year exceeds 

17 130 percent of the volume that is set out for that 

18 safeguard good in the corresponding year in the 

19 table for that country contained in Appendix I of the 

20 General Notes to the Schedule of the United States 

21 to Annex 3.3 of the Agreement. For purposes of this 

22 subsection, year 1 in that table corresponds to the 

23 calendar year in which the Agreement enters into 

24 force. 
19 

•S 1307 IS 

1 (2) CALCULATION OF ADDITIONAL DUTY.—The 

2 additional duty on a safeguard good under this sub3 section shall be— 

4 (A) in the case of a good classified under 

5 subheading 1202.10.80, 1202.20.80, 

6 2008.11.15, 2008.11.35, or 2008.11.60 of the 

7 HTS— 

8 (i) in years 1 through 5, an amount 

9 equal to 100 percent of the excess of the 

10 applicable NTR (MFN) rate of duty over 

11 the schedule rate of duty; 

12 (ii) in years 6 through 10, an amount 

13 equal to 75 percent of the excess of the ap14 plicable NTR (MFN) rate of duty over the 

15 schedule rate of duty; and 

16 (iii) in years 11 through 14, an 

17 amount equal to 50 percent of the excess 

18 of the applicable NTR (MFN) rate of duty 

19 over the schedule rate of duty; and 

20 (B) in the case of any other safeguard 

21 good— 

22 (i) in years 1 through 14, an amount 

23 equal to 100 percent of the excess of the 

24 applicable NTR (MFN) rate of duty over 

25 the schedule rate of duty; 
20 

•S 1307 IS 

1 (ii) in years 15 through 17, an 

2 amount equal to 75 percent of the excess 

3 of the applicable NTR (MFN) rate of duty 

4 over the schedule rate of duty; and 

5 (iii) in years 18 and 19, an amount 

6 equal to 50 percent of the excess of the ap7 plicable NTR (MFN) rate of duty over the 

8 schedule rate of duty. 

9 SEC. 203. RULES OF ORIGIN. 

10 (a) APPLICATION AND INTERPRETATION.—In this 

11 section: 

12 (1) TARIFF CLASSIFICATION.—The basis for 

13 any tariff classification is the HTS. 

14 (2) REFERENCE TO HTS.—Whenever in this 

15 section there is a reference to a chapter, heading, or 

16 subheading, such reference shall be a reference to a 

17 chapter, heading, or subheading of the HTS. 

18 (3) COST OR VALUE.—Any cost or value re19 ferred to in this section shall be recorded and main20 tained in accordance with the generally accepted ac21 counting principles applicable in the territory of the 

22 country in which the good is produced (whether the 

23 United States or another CAFTA–DR country). 

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

25 and for purposes of implementing the preferential tariff 
21 

•S 1307 IS 

1 treatment provided for under the Agreement, except as 

2 otherwise provided in this section, a good is an originating 

3 good if— 

4 (1) the good is a good wholly obtained or pro5 duced entirely in the territory of one or more of the 

6 CAFTA–DR countries; 

7 (2) the good— 

8 (A) is produced entirely in the territory of 

9 one or more of the CAFTA–DR countries, 

10 and— 

11 (i) each of the nonoriginating mate12 rials used in the production of the good 

13 undergoes an applicable change in tariff 

14 classification specified in Annex 4.1 of the 

15 Agreement; or 

16 (ii) the good otherwise satisfies any 

17 applicable regional value-content or other 

18 requirements specified in Annex 4.1 of the 

19 Agreement; and 

20 (B) satisfies all other applicable require21 ments of this section; or 

22 (3) the good is produced entirely in the terri23 tory of one or more of the CAFTA–DR countries, 

24 exclusively from materials described in paragraph 

25 (1) or (2). 
22 

•S 1307 IS 

1 (c) REGIONAL VALUE-CONTENT.— 

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

3 (b)(2), the regional value-content of a good referred 

4 to in Annex 4.1 of the Agreement, except for goods 

5 to which paragraph (4) applies, shall be calculated 

6 by the importer, exporter, or producer of the good, 

7 on the basis of the build-down method described in 

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

9 paragraph (3). 

10 (2) BUILD-DOWN METHOD.— 

11 (A) IN GENERAL.—The regional value-con12 tent of a good may be calculated on the basis 

13 of the following build-down method: 

AV–VNM

RVC = ———— × 100 

AV

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

15 (i) RVC.—The term ‘‘RVC’’ means 

16 the regional value-content of the good, ex17 pressed as a percentage. 

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

19 adjusted value of the good. 

20 (iii) VNM.—The term ‘‘VNM’’ means 

21 the value of nonoriginating materials that 

22 are acquired and used by the producer in 

23 the production of the good, but does not 
23 

•S 1307 IS 

1 include the value of a material that is self2 produced. 

3 (3) BUILD-UP METHOD.— 

4 (A) IN GENERAL.—The regional value-con5 tent of a good may be calculated on the basis 

6 of the following build-up method: 

VOM

RVC = ———— × 100 

AV

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

8 (i) RVC.—The term ‘‘RVC’’ means 

9 the regional value-content of the good, ex10 pressed as a percentage. 

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

12 adjusted value of the good. 

13 (iii) VOM.—The term ‘‘VOM’’ means 

14 the value of originating materials that are 

15 acquired or self-produced, and used by the 

16 producer in the production of the good. 

17 (4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE

18 GOODS.— 

19 (A) IN GENERAL.—For purposes of sub20 section (b)(2), the regional value-content of an 

21 automotive good referred to in Annex 4.1 of the 

22 Agreement may be calculated by the importer, 

23 exporter, or producer of the good, on the basis 

24 of the following net cost method: 
24 

•S 1307 IS 

NC–VNM

RVC = ———— × 100 

NC

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

2 (i) AUTOMOTIVE GOOD.—The term 

3 ‘‘automotive good’’ means a good provided 

4 for in any of subheadings 8407.31 through 

5 8407.34, subheading 8408.20, heading 

6 8409, or in any of headings 8701 through 

7 8708. 

8 (ii) RVC.—The term ‘‘RVC’’ means 

9 the regional value-content of the auto10 motive good, expressed as a percentage. 

11 (iii) NC.—The term ‘‘NC’’ means the 

12 net cost of the automotive good. 

13 (iv) VNM.—The term ‘‘VNM’’ means 

14 the value of nonoriginating materials that 

15 are acquired and used by the producer in 

16 the production of the automotive good, but 

17 does not include the value of a material 

18 that is self-produced. 

19 (C) MOTOR VEHICLES.— 

20 (i) BASIS OF CALCULATION.—For 

21 purposes of determining the regional value22 content under subparagraph (A) for an 

23 automotive good that is a motor vehicle 

24 provided for in any of headings 8701 
25 

•S 1307 IS 

1 through 8705, an importer, exporter, or 

2 producer may average the amounts cal3 culated under the formula contained in 

4 subparagraph (A), over the producer’s fis5 cal year— 

6 (I) with respect to all motor vehi7 cles in any 1 of the categories de8 scribed in clause (ii); or 

9 (II) with respect to all motor ve10 hicles in any such category that are 

11 exported to the territory of one or 

12 more of the CAFTA–DR countries. 

13 (ii) CATEGORIES.—A category is de14 scribed in this clause if it— 

15 (I) is the same model line of 

16 motor vehicles, is in the same class of 

17 vehicles, and is produced in the same 

18 plant in the territory of a CAFTA– 

19 DR country, as the good described in 

20 clause (i) for which regional value21 content is being calculated; 

22 (II) is the same class of motor 

23 vehicles, and is produced in the same 

24 plant in the territory of a CAFTA– 

25 DR country, as the good described in 
26 

•S 1307 IS 

1 clause (i) for which regional value2 content is being calculated; or 

3 (III) is the same model line of 

4 motor vehicles produced in the terri5 tory of a CAFTA–DR country as the 

6 good described in clause (i) for which 

7 regional value-content is being cal8 culated. 

9 (D) OTHER AUTOMOTIVE GOODS.—For 

10 purposes of determining the regional value-con11 tent under subparagraph (A) for automotive 

12 goods provided for in any of subheadings 

13 8407.31 through 8407.34, in subheading 

14 8408.20, or in heading 8409, 8706, 8707, or 

15 8708, that are produced in the same plant, an 

16 importer, exporter, or producer may— 

17 (i) average the amounts calculated 

18 under the formula contained in subpara19 graph (A) over— 

20 (I) the fiscal year of the motor 

21 vehicle producer to whom the auto22 motive goods are sold, 

23 (II) any quarter or month, or 

24 (III) its own fiscal year, 
27 

•S 1307 IS 

1 if the goods were produced during the fis2 cal year, quarter, or month that is the 

3 basis for the calculation; 

4 (ii) determine the average referred to 

5 in clause (i) separately for such goods sold 

6 to 1 or more motor vehicle producers; or 

7 (iii) make a separate determination 

8 under clause (i) or (ii) for automotive 

9 goods that are exported to the territory of 

10 one or more of the CAFTA–DR countries. 

11 (E) CALCULATING NET COST.—The im12 porter, exporter, or producer shall, consistent 

13 with the provisions regarding allocation of costs 

14 set out in generally accepted accounting prin15 ciples, determine the net cost of an automotive 

16 good under subparagraph (B) by— 

17 (i) calculating the total cost incurred 

18 with respect to all goods produced by the 

19 producer of the automotive good, sub20 tracting any sales promotion, marketing 

21 and after-sales service costs, royalties, 

22 shipping and packing costs, and nonallow23 able interest costs that are included in the 

24 total cost of all such goods, and then rea-
28 

•S 1307 IS 

1 sonably allocating the resulting net cost of 

2 those goods to the automotive good; 

3 (ii) calculating the total cost incurred 

4 with respect to all goods produced by that 

5 producer, reasonably allocating the total 

6 cost to the automotive good, and then sub7 tracting any sales promotion, marketing 

8 and after-sales service costs, royalties, 

9 shipping and packing costs, and nonallow10 able interest costs that are included in the 

11 portion of the total cost allocated to the 

12 automotive good; or 

13 (iii) reasonably allocating each cost 

14 that forms part of the total cost incurred 

15 with respect to the automotive good so that 

16 the aggregate of all such costs does not in17 clude any sales promotion, marketing and 

18 after-sales service costs, royalties, shipping 

19 and packing costs, or nonallowable interest 

20 costs. 

21 (d) VALUE OF MATERIALS.— 

22 (1) IN GENERAL.—For the purpose of calcu23 lating the regional value-content of a good under 

24 subsection (c), and for purposes of applying the de 
29 

•S 1307 IS 

1 minimis rules under subsection (f), the value of a 

2 material is— 

3 (A) in the case of a material that is im4 ported by the producer of the good, the ad5 justed value of the material; 

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

7 the territory in which the good is produced, the 

8 value, determined in accordance with Articles 1 

9 through 8, Article 15, and the corresponding in10 terpretive notes of the Agreement on Implemen11 tation of Article VII of the General Agreement 

12 on Tariffs and Trade 1994 referred to in sec13 tion 101(d)(8) of the Uruguay Round Agree14 ments Act, as set forth in regulations promul15 gated by the Secretary of the Treasury pro16 viding for the application of such Articles in the 

17 absence of an importation; or 

18 (C) in the case of a material that is self19 produced, the sum of— 

20 (i) all expenses incurred in the pro21 duction of the material, including general 

22 expenses; and 

23 (ii) an amount for profit equivalent to 

24 the profit added in the normal course of 

25 trade. 
30 

•S 1307 IS 

1 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

2 MATERIALS.— 

3 (A) ORIGINATING MATERIAL.—The fol4 lowing expenses, if not included in the value of 

5 an originating material calculated under para6 graph (1), may be added to the value of the 

7 originating material: 

8 (i) The costs of freight, insurance, 

9 packing, and all other costs incurred in 

10 transporting the material within or be11 tween the territory of one or more of the 

12 CAFTA–DR countries to the location of 

13 the producer. 

14 (ii) Duties, taxes, and customs broker15 age fees on the material paid in the terri16 tory of one or more of the CAFTA–DR 

17 countries, other than duties or taxes that 

18 are waived, refunded, refundable, or other19 wise recoverable, including credit against 

20 duty or tax paid or payable. 

21 (iii) The cost of waste and spoilage re22 sulting from the use of the material in the 

23 production of the good, less the value of 

24 renewable scrap or byproducts. 
31 

•S 1307 IS 

1 (B) NONORIGINATING MATERIAL.—The 

2 following expenses, if included in the value of a 

3 nonoriginating material calculated under para4 graph (1), may be deducted from the value of 

5 the nonoriginating material: 

6 (i) The costs of freight, insurance, 

7 packing, and all other costs incurred in 

8 transporting the material within or be9 tween the territory of one or more of the 

10 CAFTA–DR countries to the location of 

11 the producer. 

12 (ii) Duties, taxes, and customs broker13 age fees on the material paid in the terri14 tory of one or more of the CAFTA–DR 

15 countries, other than duties or taxes that 

16 are waived, refunded, refundable, or other17 wise recoverable, including credit against 

18 duty or tax paid or payable. 

19 (iii) The cost of waste and spoilage re20 sulting from the use of the material in the 

21 production of the good, less the value of 

22 renewable scrap or byproducts. 

23 (iv) The cost of originating materials 

24 used in the production of the nonorigi-
32 

•S 1307 IS 

1 nating material in the territory of one or 

2 more of the CAFTA–DR countries. 

3 (e) ACCUMULATION.— 

4 (1) ORIGINATING MATERIALS USED IN PRODUC5 TION OF GOODS OF ANOTHER COUNTRY.—Origi6 nating materials from the territory of one or more 

7 of the CAFTA–DR countries that are used in the 

8 production of a good in the territory of another 

9 CAFTA–DR country shall be considered to originate 

10 in the territory of that other country. 

11 (2) MULTIPLE PROCEDURES.—A good that is 

12 produced in the territory of one or more of the 

13 CAFTA–DR countries by 1 or more producers is an 

14 originating good if the good satisfies the require15 ments of subsection (b) and all other applicable re16 quirements of this section. 

17 (f) DE MINIMIS AMOUNTS OF NONORIGINATING MA18 TERIALS.— 

19 (1) IN GENERAL.—Except as provided in para20 graphs (2) and (3), a good that does not undergo a 

21 change in tariff classification pursuant to Annex 4.1 

22 of the Agreement is an originating good if— 

23 (A) the value of all nonoriginating mate24 rials that— 
33 

•S 1307 IS 

1 (i) are used in the production of the 

2 good, and 

3 (ii) do not undergo the applicable 

4 change in tariff classification (set out in 

5 Annex 4.1 of the Agreement), 

6 does not exceed 10 percent of the adjusted 

7 value of the good; 

8 (B) the good meets all other applicable re9 quirements of this section; and 

10 (C) the value of such nonoriginating mate11 rials is included in the value of nonoriginating 

12 materials for any applicable regional value-con13 tent requirement for the good. 

14 (2) EXCEPTIONS.—Paragraph (1) does not 

15 apply to the following: 

16 (A) A nonoriginating material provided for 

17 in chapter 4, or a nonoriginating dairy prepara18 tion containing over 10 percent by weight of 

19 milk solids provided for in subheading 1901.90 

20 or 2106.90, that is used in the production of a 

21 good provided for in chapter 4. 

22 (B) A nonoriginating material provided for 

23 in chapter 4, or a nonoriginating dairy prepara24 tion containing over 10 percent by weight of 

25 milk solids provided for in subheading 1901.90, 
34 

•S 1307 IS 

1 that is used in the production of the following 

2 goods: 

3 (i) Infant preparations containing 

4 over 10 percent by weight of milk solids 

5 provided for in subheading 1901.10. 

6 (ii) Mixes and doughs, containing over 

7 25 percent by weight of butterfat, not put 

8 up for retail sale, provided for in sub9 heading 1901.20. 

10 (iii) Dairy preparations containing 

11 over 10 percent by weight of milk solids 

12 provided for in subheading 1901.90 or 

13 2106.90. 

14 (iv) Goods provided for in heading 

15 2105. 

16 (v) Beverages containing milk pro17 vided for in subheading 2202.90. 

18 (vi) Animal feeds containing over 10 

19 percent by weight of milk solids provided 

20 for in subheading 2309.90. 

21 (C) A nonoriginating material provided for 

22 in heading 0805, or any of subheadings 

23 2009.11 through 2009.39, that is used in the 

24 production of a good provided for in any of sub25 headings 2009.11 through 2009.39, or in fruit 
35 

•S 1307 IS 

1 or vegetable juice of any single fruit or vege2 table, fortified with minerals or vitamins, con3 centrated or unconcentrated, provided for in 

4 subheading 2106.90 or 2202.90. 

5 (D) A nonoriginating material provided for 

6 in heading 0901 or 2101 that is used in the 

7 production of a good provided for in heading 

8 0901 or 2101. 

9 (E) A nonoriginating material provided for 

10 in heading 1006 that is used in the production 

11 of a good provided for in heading 1102 or 1103 

12 or subheading 1904.90. 

13 (F) A nonoriginating material provided for 

14 in chapter 15 that is used in the production of 

15 a good provided for in chapter 15. 

16 (G) A nonoriginating material provided for 

17 in heading 1701 that is used in the production 

18 of a good provided for in any of headings 1701 

19 through 1703. 

20 (H) A nonoriginating material provided for 

21 in chapter 17 that is used in the production of 

22 a good provided for in subheading 1806.10. 

23 (I) Except as provided in subparagraphs 

24 (A) through (H) and Annex 4.1 of the Agree25 ment, a nonoriginating material used in the 
36 

•S 1307 IS 

1 production of a good provided for in any of 

2 chapters 1 through 24, unless the nonorigi3 nating material is provided for in a different 

4 subheading than the good for which origin is 

5 being determined under this section. 

6 (3) TEXTILE OR APPAREL GOODS.— 

7 (A) IN GENERAL.—Except as provided in 

8 subparagraph (B), a textile or apparel good 

9 that is not an originating good because certain 

10 fibers or yarns used in the production of the 

11 component of the good that determines the tar12 iff classification of the good do not undergo an 

13 applicable change in tariff classification, set out 

14 in Annex 4.1 of the Agreement, shall be consid15 ered to be an originating good if— 

16 (i) the total weight of all such fibers 

17 or yarns in that component is not more 

18 than 10 percent of the total weight of that 

19 component; or 

20 (ii) the yarns are those described in 

21 section 204(b)(3)(B)(vi)(IV) of the Andean 

22 Trade Preference Act (19 U.S.C. 

23 3203(b)(3)(B)(vi)(IV))(as in effect on the 

24 date of the enactment of this Act). 
37 

•S 1307 IS 

1 (B) CERTAIN TEXTILE OR APPAREL

2 GOODS.—A textile or apparel good containing 

3 elastomeric yarns in the component of the good 

4 that determines the tariff classification of the 

5 good shall be considered to be an originating 

6 good only if such yarns are wholly formed in 

7 the territory of a CAFTA–DR country. 

8 (C) YARN, FABRIC, OR FIBER.—For pur9 poses of this paragraph, in the case of a good 

10 that is a yarn, fabric, or fiber, the term ‘‘com11 ponent of the good that determines the tariff 

12 classification of the good’’ means all of the fi13 bers in the good. 

14 (g) FUNGIBLE GOODS AND MATERIALS.— 

15 (1) IN GENERAL.— 

16 (A) CLAIM FOR PREFERENTIAL TARIFF

17 TREATMENT.—A person claiming that a fun18 gible good or fungible material is an originating 

19 good may base the claim either on the physical 

20 segregation of the fungible good or fungible ma21 terial or by using an inventory management 

22 method with respect to the fungible good or 

23 fungible material. 
38 

•S 1307 IS 

1 (B) INVENTORY MANAGEMENT METHOD.— 

2 In this subsection, the term ‘‘inventory manage3 ment method’’ means— 

4 (i) averaging; 

5 (ii) ‘‘last-in, first-out’’; 

6 (iii) ‘‘first-in, first-out’’; or 

7 (iv) any other method— 

8 (I) recognized in the generally 

9 accepted accounting principles of the 

10 CAFTA–DR country in which the 

11 production is performed; or 

12 (II) otherwise accepted by that 

13 country. 

14 (2) ELECTION OF INVENTORY METHOD.—A 

15 person selecting an inventory management method 

16 under paragraph (1) for a particular fungible good 

17 or fungible material shall continue to use that meth18 od for that fungible good or fungible material 

19 throughout the fiscal year of that person. 

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

21 (1) IN GENERAL.—Subject to paragraphs (2) 

22 and (3), accessories, spare parts, or tools delivered 

23 with a good that form part of the good’s standard 

24 accessories, spare parts, or tools shall— 
39 

•S 1307 IS 

1 (A) be treated as originating goods if the 

2 good is an originating good; and 

3 (B) be disregarded in determining whether 

4 all the nonoriginating materials used in the pro5 duction of the good undergo the applicable 

6 change in tariff classification set out in Annex 

7 4.1 of the Agreement. 

8 (2) CONDITIONS.—Paragraph (1) shall apply 

9 only if— 

10 (A) the accessories, spare parts, or tools 

11 are classified with and not invoiced separately 

12 from the good, regardless of whether they ap13 pear specified or separately identified in the in14 voice for the good; and 

15 (B) the quantities and value of the acces16 sories, spare parts, or tools are customary for 

17 the good. 

18 (3) REGIONAL VALUE-CONTENT.—If the good is 

19 subject to a regional value-content requirement, the 

20 value of the accessories, spare parts, or tools shall 

21 be taken into account as originating or nonorigi22 nating materials, as the case may be, in calculating 

23 the regional value-content of the good. 

24 (i) PACKAGING MATERIALS AND CONTAINERS FOR

25 RETAIL SALE.—Packaging materials and containers in 
40 

•S 1307 IS 

1 which a good is packaged for retail sale, if classified with 

2 the good, shall be disregarded in determining whether all 

3 the nonoriginating materials used in the production of the 

4 good undergo the applicable change in tariff classification 

5 set out in Annex 4.1 of the Agreement, and, if the good 

6 is subject to a regional value-content requirement, the 

7 value of such packaging materials and containers shall be 

8 taken into account as originating or nonoriginating mate9 rials, as the case may be, in calculating the regional value10 content of the good. 

11 (j) PACKING MATERIALS AND CONTAINERS FOR

12 SHIPMENT.—Packing materials and containers for ship13 ment shall be disregarded in determining whether a good 

14 is an originating good. 

15 (k) INDIRECT MATERIALS.—An indirect material 

16 shall be treated as an originating material without regard 

17 to where it is produced. 

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

19 undergone production necessary to qualify as an origi20 nating good under subsection (b) shall not be considered 

21 to be an originating good if, subsequent to that produc22 tion, the good— 

23 (1) undergoes further production or any other 

24 operation outside the territories of the CAFTA–DR 

25 countries, other than unloading, reloading, or any 
41 

•S 1307 IS 

1 other operation necessary to preserve the good in 

2 good condition or to transport the good to the terri3 tory of a CAFTA–DR country; or 

4 (2) does not remain under the control of cus5 toms authorities in the territory of a country other 

6 than a CAFTA–DR country. 

7 (m) GOODS CLASSIFIABLE AS GOODS PUT UP IN

8 SETS.—Notwithstanding the rules set forth in Annex 4.1 

9 of the Agreement, goods classifiable as goods put up in 

10 sets for retail sale as provided for in General Rule of Inter11 pretation 3 of the HTS shall not be considered to be origi12 nating goods unless— 

13 (1) each of the goods in the set is an origi14 nating good; or 

15 (2) the total value of the nonoriginating goods 

16 in the set does not exceed— 

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

18 10 percent of the adjusted value of the set; or 

19 (B) in the case of a good, other than a tex20 tile or apparel good, 15 percent of the adjusted 

21 value of the set. 

22 (n) DEFINITIONS.—In this section: 

23 (1) ADJUSTED VALUE.—The term ‘‘adjusted 

24 value’’ means the value determined in accordance 

25 with Articles 1 through 8, Article 15, and the cor-
42 

•S 1307 IS 

1 responding interpretive notes of the Agreement on 

2 Implementation of Article VII of the General Agree3 ment on Tariffs and Trade 1994 referred to in sec4 tion 101(d)(8) of the Uruguay Round Agreements 

5 Act, adjusted, if necessary, to exclude any costs, 

6 charges, or expenses incurred for transportation, in7 surance, and related services incident to the inter8 national shipment of the merchandise from the coun9 try of exportation to the place of importation. 

10 (2) CAFTA–DR COUNTRY.—The term 

11 ‘‘CAFTA–DR country’’ means— 

12 (A) the United States; and 

13 (B) Costa Rica, the Dominican Republic, 

14 El Salvador, Guatemala, Honduras, or Nica15 ragua, for such time as the Agreement is in 

16 force between the United States and that coun17 try. 

18 (3) CLASS OF MOTOR VEHICLES.—The term 

19 ‘‘class of motor vehicles’’ means any one of the fol20 lowing categories of motor vehicles: 

21 (A) Motor vehicles provided for in sub22 heading 8701.20, 8704.10, 8704.22, 8704.23, 

23 8704.32, or 8704.90, or heading 8705 or 8706, 

24 or motor vehicles for the transport of 16 or 
43 

•S 1307 IS 

1 more persons provided for in subheading 

2 8702.10 or 8702.90. 

3 (B) Motor vehicles provided for in sub4 heading 8701.10 or any of subheadings 

5 8701.30 through 8701.90. 

6 (C) Motor vehicles for the transport of 15 

7 or fewer persons provided for in subheading 

8 8702.10 or 8702.90, or motor vehicles provided 

9 for in subheading 8704.21 or 8704.31. 

10 (D) Motor vehicles provided for in any of 

11 subheadings 8703.21 through 8703.90. 

12 (4) FUNGIBLE GOOD OR FUNGIBLE MATE13 RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate14 rial’’ means a good or material, as the case may be, 

15 that is interchangeable with another good or mate16 rial for commercial purposes and the properties of 

17 which are essentially identical to such other good or 

18 material. 

19 (5) GENERALLY ACCEPTED ACCOUNTING PRIN20 CIPLES.—The term ‘‘generally accepted accounting 

21 principles’’ means the recognized consensus or sub22 stantial authoritative support in the territory of a 

23 CAFTA–DR country with respect to the recording 

24 of revenues, expenses, costs, assets, and liabilities, 

25 the disclosure of information, and the preparation of 
44 

•S 1307 IS 

1 financial statements. The principles may encompass 

2 broad guidelines of general application as well as de3 tailed standards, practices, and procedures. 

4 (6) GOODS WHOLLY OBTAINED OR PRODUCED

5 ENTIRELY IN THE TERRITORY OF ONE OR MORE OF

6 THE CAFTA–DR COUNTRIES.—The term ‘‘goods 

7 wholly obtained or produced entirely in the territory 

8 of one or more of the CAFTA–DR countries’’ 

9 means— 

10 (A) plants and plant products harvested or 

11 gathered in the territory of one or more of the 

12 CAFTA–DR countries; 

13 (B) live animals born and raised in the ter14 ritory of one or more of the CAFTA–DR coun15 tries; 

16 (C) goods obtained in the territory of one 

17 or more of the CAFTA–DR countries from live 

18 animals; 

19 (D) goods obtained from hunting, trap20 ping, fishing or aquaculture conducted in the 

21 territory of one or more of the CAFTA–DR 

22 countries; 

23 (E) minerals and other natural resources 

24 not included in subparagraphs (A) through (D) 
45 

•S 1307 IS 

1 that are extracted or taken in the territory of 

2 one or more of the CAFTA–DR countries; 

3 (F) fish, shellfish, and other marine life 

4 taken from the sea, seabed, or subsoil outside 

5 the territory of one or more of the CAFTA–DR 

6 countries by vessels registered or recorded with 

7 a CAFTA–DR country and flying the flag of 

8 that country; 

9 (G) goods produced on board factory ships 

10 from the goods referred to in subparagraph (F), 

11 if such factory ships are registered or recorded 

12 with that CAFTA–DR country and fly the flag 

13 of that country; 

14 (H) goods taken by a CAFTA–DR country 

15 or a person of a CAFTA–DR country from the 

16 seabed or subsoil outside territorial waters, if a 

17 CAFTA–DR country has rights to exploit such 

18 seabed or subsoil; 

19 (I) goods taken from outer space, if the 

20 goods are obtained by a CAFTA–DR country or 

21 a person of a CAFTA–DR country and not 

22 processed in the territory of a country other 

23 than a CAFTA–DR country; 

24 (J) waste and scrap derived from— 
46 

•S 1307 IS 

1 (i) manufacturing or processing oper2 ations in the territory of one or more of 

3 the CAFTA–DR countries; or 

4 (ii) used goods collected in the terri5 tory of one or more of the CAFTA–DR 

6 countries, if such goods are fit only for the 

7 recovery of raw materials; 

8 (K) recovered goods derived in the terri9 tory of one or more of the CAFTA–DR coun10 tries from used goods, and used in the territory 

11 of a CAFTA–DR country in the production of 

12 remanufactured goods; and 

13 (L) goods produced in the territory of one 

14 or more of the CAFTA–DR countries exclu15 sively from— 

16 (i) goods referred to in any of sub17 paragraphs (A) through (J), or 

18 (ii) the derivatives of goods referred 

19 to in clause (i), 

20 at any stage of production. 

21 (7) IDENTICAL GOODS.—The term ‘‘identical 

22 goods’’ means identical goods as defined in the 

23 Agreement on Implementation of Article VII of the 

24 General Agreement on Tariffs and Trade 1994 re-
47 

•S 1307 IS 

1 ferred to in section 101(d)(8) of the Uruguay Round 

2 Agreements Act; 

3 (8) INDIRECT MATERIAL.—The term ‘‘indirect 

4 material’’ means a good used in the production, test5 ing, or inspection of a good but not physically incor6 porated into the good, or a good used in the mainte7 nance of buildings or the operation of equipment as8 sociated with the production of a good, including— 

9 (A) fuel and energy; 

10 (B) tools, dies, and molds; 

11 (C) spare parts and materials used in the 

12 maintenance of equipment or buildings; 

13 (D) lubricants, greases, compounding ma14 terials, and other materials used in production 

15 or used to operate equipment or buildings; 

16 (E) gloves, glasses, footwear, clothing, 

17 safety equipment, and supplies; 

18 (F) equipment, devices, and supplies used 

19 for testing or inspecting the good; 

20 (G) catalysts and solvents; and 

21 (H) any other goods that are not incor22 porated into the good but the use of which in 

23 the production of the good can reasonably be 

24 demonstrated to be a part of that production. 
48 

•S 1307 IS 

1 (9) MATERIAL.—The term ‘‘material’’ means a 

2 good that is used in the production of another good, 

3 including a part or an ingredient. 

4 (10) MATERIAL THAT IS SELF-PRODUCED.— 

5 The term ‘‘material that is self-produced’’ means an 

6 originating material that is produced by a producer 

7 of a good and used in the production of that good. 

8 (11) MODEL LINE.—The term ‘‘model line’’ 

9 means a group of motor vehicles having the same 

10 platform or model name. 

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

12 total cost minus sales promotion, marketing, and 

13 after-sales service costs, royalties, shipping and 

14 packing costs, and non-allowable interest costs that 

15 are included in the total cost. 

16 (13) NONALLOWABLE INTEREST COSTS.—The 

17 term ‘‘nonallowable interest costs’’ means interest 

18 costs incurred by a producer that exceed 700 basis 

19 points above the applicable official interest rate for 

20 comparable maturities of the CAFTA–DR country 

21 in which the producer is located. 

22 (14) NONORIGINATING GOOD OR NONORIGI23 NATING MATERIAL.—The terms ‘‘nonoriginating 

24 good’’ and ‘‘nonoriginating material’’ mean a good 
49 

•S 1307 IS 

1 or material, as the case may be, that does not qual2 ify as originating under this section. 

3 (15) PACKING MATERIALS AND CONTAINERS

4 FOR SHIPMENT.—The term ‘‘packing materials and 

5 containers for shipment’’ means the goods used to 

6 protect a good during its transportation and does 

7 not include the packaging materials and containers 

8 in which a good is packaged for retail sale. 

9 (16) PREFERENTIAL TARIFF TREATMENT.— 

10 The term ‘‘preferential tariff treatment’’ means the 

11 customs duty rate, and the treatment under article 

12 3.10.4 of the Agreement, that are applicable to an 

13 originating good pursuant to the Agreement. 

14 (17) PRODUCER.—The term ‘‘producer’’ means 

15 a person who engages in the production of a good 

16 in the territory of a CAFTA–DR country. 

17 (18) PRODUCTION.—The term ‘‘production’’ 

18 means growing, mining, harvesting, fishing, raising, 

19 trapping, hunting, manufacturing, processing, as20 sembling, or disassembling a good. 

21 (19) REASONABLY ALLOCATE.—The term ‘‘rea22 sonably allocate’’ means to apportion in a manner 

23 that would be appropriate under generally accepted 

24 accounting principles. 
50 

•S 1307 IS 

1 (20) RECOVERED GOODS.—The term ‘‘recov2 ered goods’’ means materials in the form of indi3 vidual parts that are the result of— 

4 (A) the disassembly of used goods into in5 dividual parts; and 

6 (B) the cleaning, inspecting, testing, or 

7 other processing that is necessary for improve8 ment to sound working condition of such indi9 vidual parts. 

10 (21) REMANUFACTURED GOOD.—The term ‘‘re11 manufactured good’’ means a good that is classified 

12 under chapter 84, 85, or 87, or heading 9026, 9031, 

13 or 9032, other than a good classified under heading 

14 8418 or 8516, and that— 

15 (A) is entirely or partially comprised of re16 covered goods; and 

17 (B) has a similar life expectancy and en18 joys a factory warranty similar to such a new 

19 good. 

20 (22) TOTAL COST.—The term ‘‘total cost’’ 

21 means all product costs, period costs, and other 

22 costs for a good incurred in the territory of one or 

23 more of the CAFTA–DR countries. 

24 (23) USED.—The term ‘‘used’’ means used or 

25 consumed in the production of goods. 
51 

•S 1307 IS 

1 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

2 (1) IN GENERAL.—The President is authorized 

3 to proclaim, as part of the HTS— 

4 (A) the provisions set out in Annex 4.1 of 

5 the Agreement; and 

6 (B) any additional subordinate category 

7 necessary to carry out this title consistent with 

8 the Agreement. 

9 (2) FABRICS AND YARNS NOT AVAILABLE IN

10 COMMERCIAL QUANTITIES IN THE UNITED

11 STATES.—The President is authorized to proclaim 

12 that a fabric or yarn is added to the list in Annex 

13 3.25 of the Agreement in an unrestricted quantity, 

14 as provided in article 3.25.4(e) of the Agreement. 

15 (3) MODIFICATIONS.— 

16 (A) IN GENERAL.—Subject to the consulta17 tion and layover provisions of section 104, the 

18 President may proclaim modifications to the 

19 provisions proclaimed under the authority of 

20 paragraph (1)(A), other than provisions of 

21 chapters 50 through 63, as included in Annex 

22 4.1 of the Agreement. 

23 (B) ADDITIONAL PROCLAMATIONS.—Not24 withstanding subparagraph (A), and subject to 

25 the consultation and layover provisions of sec-
52 

•S 1307 IS 

1 tion 104, the President may proclaim before the 

2 end of the 1-year period beginning on the date 

3 of the enactment of this Act, modifications to 

4 correct any typographical, clerical, or other non5 substantive technical error regarding the provi6 sions of chapters 50 through 63, as included in 

7 Annex 4.1 of the Agreement. 

8 (4) FABRICS, YARNS, OR FIBERS NOT AVAIL9 ABLE IN COMMERCIAL QUANTITIES IN THE CAFTA– 

10 DR COUNTRIES.— 

11 (A) IN GENERAL.—Notwithstanding para12 graph 3(A), the list of fabrics, yarns, and fibers 

13 set out in Annex 3.25 of the Agreement may be 

14 modified as provided for in this paragraph. 

15 (B) DEFINITIONS.—In this paragraph: 

16 (i) The term ‘‘interested entity’’ 

17 means the government of a CAFTA–DR 

18 country other than the United States, a 

19 potential or actual purchaser of a textile or 

20 apparel good, or a potential or actual sup21 plier of a textile or apparel good. 

22 (ii) All references to ‘‘day’’ and 

23 ‘‘days’’ exclude Saturdays, Sundays, and 

24 legal holidays. 
53 

•S 1307 IS 

1 (C) REQUESTS TO ADD FABRICS, YARNS, 

2 OR FIBERS.—(i) An interested entity may re3 quest the President to determine that a fabric, 

4 yarn, or fiber is not available in commercial 

5 quantities in a timely manner in the CAFTA– 

6 DR countries and to add that fabric, yarn, or 

7 fiber to the list in Annex 3.25 of the Agreement 

8 in a restricted or unrestricted quantity. 

9 (ii) After receiving a request under clause 

10 (i), the President may determine whether— 

11 (I) the fabric, yarn, or fiber is avail12 able in commercial quantities in a timely 

13 manner in the CAFTA–DR countries; or 

14 (II) any interested entity objects to 

15 the request. 

16 (iii) The President may, within the time 

17 periods specified in clause (iv), proclaim that a 

18 fabric, yarn, or fiber that is the subject of a re19 quest submitted under clause (i) is added to the 

20 list in Annex 3.25 of the Agreement in an unre21 stricted quantity, or in any restricted quantity 

22 that the President may establish, if the Presi23 dent determines under clause (ii) that— 

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

25 available in commercial quantities in a 
54 

•S 1307 IS 

1 timely manner in the CAFTA–DR coun2 tries; or 

3 (II) no interested entity has objected 

4 to the request. 

5 (iv) The time periods within which the 

6 President may issue a proclamation under 

7 clause (iii) are— 

8 (I) not later than 30 days after the 

9 date on which the request is submitted 

10 under clause (i); or 

11 (II) not later than 44 days after the 

12 request is submitted, if the President de13 termines, within 30 days after the date on 

14 which the request is submitted, that the 

15 President does not have sufficient informa16 tion to make a determination under clause 

17 (ii). 

18 (v) Notwithstanding section 103(a)(2), a 

19 proclamation made under clause (iii) shall take 

20 effect on the date on which the text of the proc21 lamation is published in the Federal Register. 

22 (vi) Not later than 6 months after pro23 claiming under clause (iii) that a fabric, yarn, 

24 or fiber is added to the list in Annex 3.25 of 

25 the Agreement in a restricted quantity, the 
55 

•S 1307 IS 

1 President may eliminate the restriction if the 

2 President determines that the fabric, yarn, or 

3 fiber is not available in commercial quantities in 

4 a timely manner in the CAFTA–DR countries. 

5 (D) DEEMED APPROVAL OF REQUEST.—If, 

6 after an interested entity submits a request 

7 under subparagraph (C)(i), the President does 

8 not, within the applicable time period specified 

9 in subparagraph (C)(iv), make a determination 

10 under subparagraph (C)(ii) regarding the re11 quest, the fabric, yarn, or fiber that is the sub12 ject of the request shall be considered to be 

13 added, in an unrestricted quantity, to the list in 

14 Annex 3.25 of the Agreement beginning— 

15 (i) 45 days after the date on which 

16 the request was submitted; or 

17 (ii) 60 days after the date on which 

18 the request was submitted, if the President 

19 made a determination under subparagraph 

20 (C)(iv)(II). 

21 (E) REQUESTS TO RESTRICT OR REMOVE

22 FABRICS, YARNS, OR FIBERS.—(i) Subject to 

23 clause (ii), an interested entity may request the 

24 President to restrict the quantity of, or remove 
56 

•S 1307 IS 

1 from the list in Annex 3.25 of the Agreement, 

2 any fabric, yarn, or fiber— 

3 (I) that has been added to that list in 

4 an unrestricted quantity pursuant to para5 graph (2) or subparagraph (C)(iii) or (D); 

6 or 

7 (II) with respect to which the Presi8 dent has eliminated a restriction under 

9 subparagraph (C)(vi). 

10 (ii) An interested entity may submit a re11 quest under clause (i) at any time beginning 6 

12 months after the date of the action described in 

13 subclause (I) or (II) of that clause. 

14 (iii) Not later than 30 days after the date 

15 on which a request under clause (i) is sub16 mitted, the President may proclaim an action 

17 provided for under clause (i) if the President 

18 determines that the fabric, yarn, or fiber that 

19 is the subject of the request is available in com20 mercial quantities in a timely manner in the 

21 CAFTA–DR countries. 

22 (iv) A proclamation declared under clause 

23 (iii) shall take effect no earlier than the date 

24 that is 6 months after the date on which the 
57 

•S 1307 IS 

1 text of the proclamation is published in the 

2 Federal Register. 

3 (F) PROCEDURES.—The President shall 

4 establish procedures— 

5 (i) governing the submission of a re6 quest under subparagraphs (C) and (E); 

7 and 

8 (ii) providing an opportunity for inter9 ested entities to submit comments and sup10 porting evidence before the President 

11 makes a determination under subpara12 graph (C) (ii) or (vi) or (E)(iii). 

13 SEC. 204. CUSTOMS USER FEES. 

14 Section 13031(b) of the Consolidated Omnibus Budg15 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

16 amended by adding after paragraph (14), the following: 

17 ‘‘(15) No fee may be charged under subsection 

18 (a) (9) or (10) with respect to goods that qualify as 

19 originating goods under section 203 of the Domini20 can Republic-Central America-United States Free 

21 Trade Agreement Implementation Act. Any service 

22 for which an exemption from such fee is provided by 

23 reason of this paragraph may not be funded with 

24 money contained in the Customs User Fee Ac25 count.’’. 
58 

•S 1307 IS 

1 SEC. 205. RETROACTIVE APPLICATION FOR CERTAIN LIQ2 UIDATIONS AND RELIQUIDATIONS OF TEX3 TILE OR APPAREL GOODS. 

4 (a) IN GENERAL.—Notwithstanding section 514 of 

5 the Tariff Act of 1930 (19 U.S.C. 1514) or any other pro6 vision of law, and subject to subsection (c), an entry— 

7 (1) of a textile or apparel good— 

8 (A) of a CAFTA–DR country that the 

9 United States Trade Representative has des10 ignated as an eligible country under subsection 

11 (b), and 

12 (B) that would have qualified as an origi13 nating good under section 203 if the good had 

14 been entered after the date of entry into force 

15 of the Agreement for that country, 

16 (2) that was made on or after January 1, 2004, 

17 and before the date of the entry into force of the 

18 Agreement with respect to that country, and 

19 (3) for which customs duties in excess of the 

20 applicable rate of duty for that good set out in the 

21 Schedule of the United States to Annex 3.3 of the 

22 Agreement were paid, 

23 shall be liquidated or reliquidated at the applicable rate 

24 of duty for that good set out in the Schedule of the United 

25 States to Annex 3.3 of the Agreement, and the Secretary 
59 

•S 1307 IS 

1 of the Treasury shall refund any excess customs duties 

2 paid with respect to such entry. 

3 (b) ELIGIBLE COUNTRY.—The United States Trade 

4 Representative shall determine, in accordance with article 

5 3.20 of the Agreement, which CAFTA–DR countries are 

6 eligible countries for purposes of this section, and shall 

7 publish a list of all such countries in the Federal Register. 

8 (c) REQUESTS.—Liquidation or reliquidation may be 

9 made under subsection (a) with respect to an entry of a 

10 textile or apparel good only if a request therefor is filed 

11 with the Bureau of Customs and Border Protection, with12 in such period as the Bureau of Customs and Border Pro13 tection shall establish by regulation in consultation with 

14 the Secretary of the Treasury, that contains sufficient in15 formation to enable the Bureau of Customs and Border 

16 Protection— 

17 (1)(A) to locate the entry; or 

18 (B) to reconstruct the entry if it cannot be lo19 cated; and 

20 (2) to determine that the good satisfies the con21 ditions set out in subsection (a). 

22 (d) DEFINITION.—As used in this section, the term 

23 ‘‘entry’’ includes a withdrawal from warehouse for con24 sumption. 
60 

•S 1307 IS 

1 SEC. 206. DISCLOSURE OF INCORRECT INFORMATION; 

2 FALSE CERTIFICATIONS OF ORIGIN; DENIAL 

3 OF PREFERENTIAL TARIFF TREATMENT. 

4 (a) DISCLOSURE OF INCORRECT INFORMATION.— 

5 Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) 

6 is amended— 

7 (1) in subsection (c)— 

8 (A) by redesignating paragraph (9) as 

9 paragraph (10); and 

10 (B) by inserting after paragraph (8) the 

11 following new paragraph: 

12 ‘‘(9) PRIOR DISCLOSURE REGARDING CLAIMS

13 UNDER THE DOMINICAN REPUBLIC-CENTRAL AMER14 ICA-UNITED STATES FREE TRADE AGREEMENT.—An 

15 importer shall not be subject to penalties under sub16 section (a) for making an incorrect claim that a 

17 good qualifies as an originating good under section 

18 203 of the Dominican Republic-Central America19 United States Free Trade Agreement Implementa20 tion Act if the importer, in accordance with regula21 tions issued by the Secretary of the Treasury, 

22 promptly and voluntarily makes a corrected declara23 tion and pays any duties owing.’’; and 

24 (2) by adding at the end the following new sub25 section: 
61 

•S 1307 IS 

1 ‘‘(h) FALSE CERTIFICATIONS OF ORIGIN UNDER THE

2 DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED

3 STATES FREE TRADE AGREEMENT.— 

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

5 it is unlawful for any person to certify falsely, by 

6 fraud, gross negligence, or negligence, in a CAFTA– 

7 DR certification of origin (as defined in section 

8 508(g)(1)(B) of this Act) that a good exported from 

9 the United States qualifies as an originating good 

10 under the rules of origin set out in section 203 of 

11 the Dominican Republic-Central America-United 

12 States Free Trade Agreement Implementation Act. 

13 The procedures and penalties of this section that 

14 apply to a violation of subsection (a) also apply to 

15 a violation of this subsection. 

16 ‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF

17 INCORRECT INFORMATION.—No penalty shall be im18 posed under this subsection if, promptly after an ex19 porter or producer that issued a CAFTA–DR certifi20 cation of origin has reason to believe that such cer21 tification contains or is based on incorrect informa22 tion, the exporter or producer voluntarily provides 

23 written notice of such incorrect information to every 

24 person to whom the certification was issued. 
62 

•S 1307 IS 

1 ‘‘(3) EXCEPTION.—A person may not be consid2 ered to have violated paragraph (1) if— 

3 ‘‘(A) the information was correct at the 

4 time it was provided in a CAFTA–DR certifi5 cation of origin but was later rendered incorrect 

6 due to a change in circumstances; and 

7 ‘‘(B) the person promptly and voluntarily 

8 provides written notice of the change in cir9 cumstances to all persons to whom the person 

10 provided the certification.’’. 

11 (b) DENIAL OF PREFERENTIAL TARIFF TREAT12 MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C. 

13 1514) is amended by adding at the end the following new 

14 subsection: 

15 ‘‘(h) DENIAL OF PREFERENTIAL TARIFF TREAT16 MENT UNDER THE DOMINICAN REPUBLIC-CENTRAL

17 AMERICA-UNITED STATES FREE TRADE AGREEMENT.— 

18 If the Bureau of Customs and Border Protection or the 

19 Bureau of Immigration and Customs Enforcement finds 

20 indications of a pattern of conduct by an importer, ex21 porter, or producer of false or unsupported representa22 tions that goods qualify under the rules of origin set out 

23 in section 203 of the Dominican Republic-Central Amer24 ica-United States Free Trade Agreement Implementation 

25 Act, the Bureau of Customs and Border Protection, in ac-
63 

•S 1307 IS 

1 cordance with regulations issued by the Secretary of the 

2 Treasury, may suspend preferential tariff treatment under 

3 the Dominican Republic-Central America-United States 

4 Free Trade Agreement to entries of identical goods cov5 ered by subsequent representations by that importer, ex6 porter, or producer until the Bureau of Customs and Bor7 der Protection determines that representations of that 

8 person are in conformity with such section 203.’’. 

9 SEC. 207. RELIQUIDATION OF ENTRIES. 

10 Subsection (d) of section 520 of the Tariff Act of 

11 1930 (19 U.S.C. 1520(d)) is amended— 

12 (1) in the matter preceding paragraph (1), by 

13 striking ‘‘or section 202 of the United States-Chile 

14 Free Trade Agreement Implementation Act’’ and in15 serting ‘‘, section 202 of the United States-Chile 

16 Free Trade Agreement Implementation Act, or sec17 tion 203 of the Dominican Republic-Central Amer18 ica-United States Free Trade Agreement Implemen19 tation Act’’; and 

20 (2) in paragraph (2), by inserting ‘‘or certifi21 cations’’ after ‘‘other certificates’’. 

22 SEC. 208. RECORDKEEPING REQUIREMENTS. 

23 Section 508 of the Tariff Act of 1930 (19 U.S.C. 

24 1508) is amended— 
64 

•S 1307 IS 

1 (1) by redesignating subsection (g) as sub2 section (h); 

3 (2) by inserting after subsection (f) the fol4 lowing new subsection: 

5 ‘‘(g) CERTIFICATIONS OF ORIGIN FOR GOODS EX6 PORTED UNDER THE DOMINICAN REPUBLIC-CENTRAL

7 AMERICA-UNITED STATES FREE TRADE AGREEMENT.— 

8 ‘‘(1) DEFINITIONS.—In this subsection: 

9 ‘‘(A) RECORDS AND SUPPORTING DOCU10 MENTS.—The term ‘records and supporting 

11 documents’ means, with respect to an exported 

12 good under paragraph (2), records and docu13 ments related to the origin of the good, includ14 ing— 

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

16 and payment for, the good; 

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

18 and payment for, all materials, including 

19 indirect materials, used in the production 

20 of the good; and 

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

22 the form in which it was exported. 

23 ‘‘(B) CAFTA–DR CERTIFICATION OF ORI24 GIN.—The term ‘CAFTA–DR certification of 

25 origin’ means the certification established under 
65 

•S 1307 IS 

1 article 4.16 of the Dominican Republic-Central 

2 America-United States Free Trade Agreement 

3 that a good qualifies as an originating good 

4 under such Agreement. 

5 ‘‘(2) EXPORTS TO CAFTA–DR COUNTRIES.—Any 

6 person who completes and issues a CAFTA–DR cer7 tification of origin for a good exported from the 

8 United States shall make, keep, and, pursuant to 

9 rules and regulations promulgated by the Secretary 

10 of the Treasury, render for examination and inspec11 tion all records and supporting documents related to 

12 the origin of the good (including the certification or 

13 copies thereof). 

14 ‘‘(3) RETENTION PERIOD.—Records and sup15 porting documents shall be kept by the person who 

16 issued a CAFTA–DR certification of origin for at 

17 least 5 years after the date on which the certifi18 cation was issued.’’; and 

19 (3) in subsection (h), as so redesignated— 

20 (A) by inserting ‘‘or (g)’’ after ‘‘(f)’’; and 

21 (B) by striking ‘‘that subsection’’ and in22 serting ‘‘either such subsection’’. 

23 SEC. 209. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

24 OR APPAREL GOODS. 

25 (a) ACTION DURING VERIFICATION.— 
66 

•S 1307 IS 

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

2 Treasury requests the government of a CAFTA–DR 

3 country to conduct a verification pursuant to article 

4 3.24 of the Agreement for purposes of making a de5 termination under paragraph (2), the President may 

6 direct the Secretary to take appropriate action de7 scribed in subsection (b) while the verification is 

8 being conducted. 

9 (2) DETERMINATION.—A determination under 

10 this paragraph is a determination— 

11 (A) that an exporter or producer in that 

12 country is complying with applicable customs 

13 laws, regulations, and procedures regarding 

14 trade in textile or apparel goods, or 

15 (B) that a claim that a textile or apparel 

16 good exported or produced by such exporter or 

17 producer— 

18 (i) qualifies as an originating good 

19 under section 203 of this Act, or 

20 (ii) is a good of a CAFTA–DR coun21 try, 

22 is accurate. 

23 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

24 action under subsection (a)(1) includes— 
67 

•S 1307 IS 

1 (1) suspension of preferential tariff treatment 

2 under the Agreement with respect to— 

3 (A) any textile or apparel good exported or 

4 produced by the person that is the subject of a 

5 verification under subsection (a)(1) regarding 

6 compliance described in subsection (a)(2)(A), if 

7 the Secretary determines there is insufficient 

8 information to support any claim for pref9 erential tariff treatment that has been made 

10 with respect to any such good; or 

11 (B) the textile or apparel good for which a 

12 claim of preferential tariff treatment has been 

13 made that is the subject of a verification under 

14 subsection (a)(1) regarding a claim described in 

15 subsection (a)(2)(B), if the Secretary deter16 mines there is insufficient information to sup17 port that claim; 

18 (2) denial of preferential tariff treatment under 

19 the Agreement with respect to— 

20 (A) any textile or apparel good exported or 

21 produced by the person that is the subject of a 

22 verification under subsection (a)(1) regarding 

23 compliance described in subsection (a)(2)(A), if 

24 the Secretary determines that the person has 

25 provided incorrect information to support any 
68 

•S 1307 IS 

1 claim for preferential tariff treatment that has 

2 been made with respect to any such good; or 

3 (B) the textile or apparel good for which a 

4 claim of preferential tariff treatment has been 

5 made that is the subject of a verification under 

6 subsection (a)(1) regarding a claim described in 

7 subsection (a)(2)(B), if the Secretary deter8 mines that a person has provided incorrect in9 formation to support that claim; 

10 (3) detention of any textile or apparel good ex11 ported or produced by the person that is the subject 

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

13 compliance described in subsection (a)(2)(A) or a 

14 claim described in subsection (a)(2)(B), if the Sec15 retary determines there is insufficient information to 

16 determine the country of origin of any such good; 

17 and 

18 (4) denial of entry into the United States of 

19 any textile or apparel good exported or produced by 

20 the person that is the subject of a verification under 

21 subsection (a)(1) regarding compliance described in 

22 subsection (a)(2)(A) or a claim described in sub23 section (a)(2)(B), if the Secretary determines that 

24 the person has provided incorrect information as to 

25 the country of origin of any such good. 
69 

•S 1307 IS 

1 (c) ACTION ON COMPLETION OF A VERIFICATION.— 

2 On completion of a verification under subsection (a), the 

3 President may direct the Secretary to take appropriate ac4 tion described in subsection (d) until such time as the Sec5 retary receives information sufficient to make the deter6 mination under subsection (a)(2) or until such earlier date 

7 as the President may direct. 

8 (d) APPROPRIATE ACTION DESCRIBED.—Appro9 priate action under subsection (c) includes— 

10 (1) denial of preferential tariff treatment under 

11 the Agreement with respect to— 

12 (A) any textile or apparel good exported or 

13 produced by the person that is the subject of a 

14 verification under subsection (a)(1) regarding 

15 compliance described in subsection (a)(2)(A), if 

16 the Secretary determines there is insufficient 

17 information to support, or that the person has 

18 provided incorrect information to support, any 

19 claim for preferential tariff treatment that has 

20 been made with respect to any such good; or 

21 (B) the textile or apparel good for which a 

22 claim of preferential tariff treatment has been 

23 made that is the subject of a verification under 

24 subsection (a)(1) regarding a claim described in 

25 subsection (a)(2)(B), if the Secretary deter-
70 

•S 1307 IS 

1 mines there is insufficient information to sup2 port, or that a person has provided incorrect in3 formation to support, that claim; and 

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

5 any textile or apparel good exported or produced by 

6 the person that is the subject of a verification under 

7 subsection (a)(1) regarding compliance described in 

8 subsection (a)(2)(A) or a claim described in sub9 section (a)(2)(B), if the Secretary determines there 

10 is insufficient information to determine, or that the 

11 person has provided incorrect information as to, the 

12 country of origin of any such good. 

13 (e) PUBLICATION OF NAME OF PERSON.—The Sec14 retary may publish the name of any person that the Sec15 retary has determined— 

16 (1) is engaged in intentional circumvention of 

17 applicable laws, regulations, or procedures affecting 

18 trade in textile or apparel goods; or 

19 (2) has failed to demonstrate that it produces, 

20 or is capable of producing, textile or apparel goods. 

21 SEC. 210. REGULATIONS. 

22 The Secretary of the Treasury shall prescribe such 

23 regulations as may be necessary to carry out— 

24 (1) subsections (a) through (n) of section 203; 

25 (2) the amendment made by section 204; and 
71 

•S 1307 IS 

1 (3) any proclamation issued under section 

2 203(o). 

3 TITLE III—RELIEF FROM 

4 IMPORTS 

5 SEC. 301. DEFINITIONS. 

6 In this title: 

7 (1) CAFTA–DR ARTICLE.—The term 

8 ‘‘CAFTA–DR article’’ means an article that quali9 fies as an originating good under section 203(b). 

10 (2) CAFTA–DR TEXTILE OR APPAREL ARTI11 CLE.—The term ‘‘CAFTA–DR textile or apparel ar12 ticle’’ means a textile or apparel good (as defined in 

13 section 3(5)) that is a CAFTA–DR article. 

14 (3) DE MINIMIS SUPPLYING COUNTRY.— 

15 (A) Subject to subparagraph (B), the term 

16 ‘‘de minimis supplying country’’ means a 

17 CAFTA–DR country whose share of imports of 

18 the relevant CAFTA–DR article into the United 

19 States does not exceed 3 percent of the aggre20 gate volume of imports of the relevant CAFTA– 

21 DR article in the most recent 12-month period 

22 for which data are available that precedes the 

23 filing of the petition under section 311(a). 

24 (B) A CAFTA–DR country shall not be 

25 considered to be a de minimis supplying country 
72 

•S 1307 IS 

1 if the aggregate share of imports of the relevant 

2 CAFTA–DR article into the United States of 

3 all CAFTA–DR countries that satisfy the con4 ditions of subparagraph (A) exceeds 9 percent 

5 of the aggregate volume of imports of the rel6 evant CAFTA–DR article during the applicable 

7 12-month period. 

8 (4) RELEVANT CAFTA–DR ARTICLE.—The term 

9 ‘‘relevant CAFTA–DR article’’ means the CAFTA– 

10 DR article with respect to which a petition has been 

11 filed under section 311(a). 

12 Subtitle A—Relief From Imports 

13 Benefiting From the Agreement 

14 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

15 (a) FILING OF PETITION.—A petition requesting ac16 tion under this subtitle for the purpose of adjusting to 

17 the obligations of the United States under the Agreement 

18 may be filed with the Commission by an entity, including 

19 a trade association, firm, certified or recognized union, or 

20 group of workers, that is representative of an industry. 

21 The Commission shall transmit a copy of any petition filed 

22 under this subsection to the United States Trade Rep23 resentative. 

24 (b) INVESTIGATION AND DETERMINATION.—Upon 

25 the filing of a petition under subsection (a), the Commis-
73 

•S 1307 IS 

1 sion, unless subsection (d) applies, shall promptly initiate 

2 an investigation to determine whether, as a result of the 

3 reduction or elimination of a duty provided for under the 

4 Agreement, a CAFTA–DR article is being imported into 

5 the United States in such increased quantities, in absolute 

6 terms or relative to domestic production, and under such 

7 conditions that imports of the CAFTA–DR article con8 stitute a substantial cause of serious injury or threat 

9 thereof to the domestic industry producing an article that 

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

11 (c) APPLICABLE PROVISIONS.—The following provi12 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

13 2252) apply with respect to any investigation initiated 

14 under subsection (b): 

15 (1) Paragraphs (1)(B) and (3) of subsection 

16 (b). 

17 (2) Subsection (c). 

18 (3) Subsection (i). 

19 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

20 investigation may be initiated under this section with re21 spect to any CAFTA–DR article if, after the date that 

22 the Agreement enters into force, import relief has been 

23 provided with respect to that CAFTA–DR article under 

24 this subtitle. 
74 

•S 1307 IS 

1 SEC. 312. COMMISSION ACTION ON PETITION. 

2 (a) DETERMINATION.—Not later than 120 days after 

3 the date on which an investigation is initiated under sec4 tion 311(b) with respect to a petition, the Commission 

5 shall make the determination required under that section. 

6 At that time, the Commission shall also determine whether 

7 any CAFTA–DR country is a de minimis supplying coun8 try. 

9 (b) APPLICABLE PROVISIONS.—For purposes of this 

10 subtitle, the provisions of paragraphs (1), (2), and (3) of 

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

12 1330(d) (1), (2), and (3)) shall be applied with respect 

13 to determinations and findings made under this section 

14 as if such determinations and findings were made under 

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

16 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

17 DETERMINATION AFFIRMATIVE.—If the determination 

18 made by the Commission under subsection (a) with respect 

19 to imports of an article is affirmative, or if the President 

20 may consider a determination of the Commission to be an 

21 affirmative determination as provided for under paragraph 

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

23 1330(d)), the Commission shall find, and recommend to 

24 the President in the report required under subsection (d), 

25 the amount of import relief that is necessary to remedy 

26 or prevent the injury found by the Commission in the de-
75 

•S 1307 IS 

1 termination and to facilitate the efforts of the domestic 

2 industry to make a positive adjustment to import competi3 tion. The import relief recommended by the Commission 

4 under this subsection shall be limited to the relief de5 scribed in section 313(c). Only those members of the Com6 mission who voted in the affirmative under subsection (a) 

7 are eligible to vote on the proposed action to remedy or 

8 prevent the injury found by the Commission. Members of 

9 the Commission who did not vote in the affirmative may 

10 submit, in the report required under subsection (d), sepa11 rate views regarding what action, if any, should be taken 

12 to remedy or prevent the injury. 

13 (d) REPORT TO PRESIDENT.—Not later than the 

14 date that is 30 days after the date on which a determina15 tion is made under subsection (a) with respect to an inves16 tigation, the Commission shall submit to the President a 

17 report that includes— 

18 (1) the determination made under subsection 

19 (a) and an explanation of the basis for the deter20 mination; 

21 (2) if the determination under subsection (a) is 

22 affirmative, any findings and recommendations for 

23 import relief made under subsection (c) and an ex24 planation of the basis for each recommendation; and 
76 

•S 1307 IS 

1 (3) any dissenting or separate views by mem2 bers of the Commission regarding the determination 

3 and recommendation referred to in paragraphs (1) 

4 and (2). 

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

6 the President under subsection (d), the Commission shall 

7 promptly make public such report (with the exception of 

8 information which the Commission determines to be con9 fidential) and shall cause a summary thereof to be pub10 lished in the Federal Register. 

11 SEC. 313. PROVISION OF RELIEF. 

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

13 30 days after the date on which the President receives the 

14 report of the Commission in which the Commission’s de15 termination under section 312(a) is affirmative, or which 

16 contains a determination under section 312(a) that the 

17 President considers to be affirmative under paragraph (1) 

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

19 1330(d)(1)), the President, subject to subsection (b), shall 

20 provide relief from imports of the article that is the subject 

21 of such determination to the extent that the President de22 termines necessary to remedy or prevent the injury found 

23 by the Commission and to facilitate the efforts of the do24 mestic industry to make a positive adjustment to import 

25 competition. 
77 

•S 1307 IS 

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

2 provide import relief under this section if the President 

3 determines that the provision of the import relief will not 

4 provide greater economic and social benefits than costs. 

5 (c) NATURE OF RELIEF.— 

6 (1) IN GENERAL.—The import relief that the 

7 President is authorized to provide under this section 

8 with respect to imports of an article is as follows: 

9 (A) The suspension of any further reduc10 tion provided for under Annex 3.3 of the Agree11 ment in the duty imposed on such article. 

12 (B) An increase in the rate of duty im13 posed on such article to a level that does not 

14 exceed the lesser of— 

15 (i) the column 1 general rate of duty 

16 imposed under the HTS on like articles at 

17 the time the import relief is provided; or 

18 (ii) the column 1 general rate of duty 

19 imposed under the HTS on like articles on 

20 the day before the date on which the 

21 Agreement enters into force. 

22 (2) PROGRESSIVE LIBERALIZATION.—If the pe23 riod for which import relief is provided under this 

24 section is greater than 1 year, the President shall 

25 provide for the progressive liberalization (described 
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1 in article 8.2.3 of the Agreement) of such relief at 

2 regular intervals during the period of its application. 

3 (d) PERIOD OF RELIEF.— 

4 (1) IN GENERAL.—Subject to paragraph (2), 

5 any import relief that the President is authorized to 

6 provide under this section may not, in the aggregate, 

7 be in effect for more than 4 years. 

8 (2) EXTENSION.— 

9 (A) IN GENERAL.—If the initial period for 

10 any import relief provided under this section is 

11 less than 4 years, the President, after receiving 

12 a determination from the Commission under 

13 subparagraph (B) that is affirmative, or which 

14 the President considers to be affirmative under 

15 paragraph (1) of section 330(d) of the Tariff 

16 Act of 1930 (19 U.S.C. 1330(d)(1)), may ex17 tend the effective period of any import relief 

18 provided under this section, subject to the limi19 tation under paragraph (1), if the President de20 termines that— 

21 (i) the import relief continues to be 

22 necessary to remedy or prevent serious in23 jury and to facilitate adjustment by the do24 mestic industry to import competition; and 
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1 (ii) there is evidence that the industry 

2 is making a positive adjustment to import 

3 competition. 

4 (B) ACTION BY COMMISSION.—(i) Upon a 

5 petition on behalf of the industry concerned 

6 that is filed with the Commission not earlier 

7 than the date which is 9 months, and not later 

8 than the date which is 6 months, before the 

9 date on which any action taken under sub10 section (a) is to terminate, the Commission 

11 shall conduct an investigation to determine 

12 whether action under this section continues to 

13 be necessary to remedy or prevent serious in14 jury and whether there is evidence that the in15 dustry is making a positive adjustment to im16 port competition. 

17 (ii) The Commission shall publish notice of 

18 the commencement of any proceeding under 

19 this subparagraph in the Federal Register and 

20 shall, within a reasonable time thereafter, hold 

21 a public hearing at which the Commission shall 

22 afford interested parties and consumers an op23 portunity to be present, to present evidence, 

24 and to respond to the presentations of other 
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1 parties and consumers, and otherwise to be 

2 heard. 

3 (iii) The Commission shall transmit to the 

4 President a report on its investigation and de5 termination under this subparagraph not later 

6 than 60 days before the action under subsection 

7 (a) is to terminate, unless the President speci8 fies a different date. 

9 (e) RATE AFTER TERMINATION OF IMPORT RE10 LIEF.—When import relief under this section is termi11 nated with respect to an article— 

12 (1) the rate of duty on that article after such 

13 termination and on or before December 31 of the 

14 year in which such termination occurs shall be the 

15 rate that, according to the Schedule of the United 

16 States to Annex 3.3 of the Agreement would have 

17 been in effect 1 year after the provision of relief 

18 under subsection (a); and 

19 (2) the rate of duty for that article after De20 cember 31 of the year in which termination occurs 

21 shall be, at the discretion of the President, either— 

22 (A) the applicable rate of duty for that ar23 ticle set out in the Schedule of the United 

24 States to Annex 3.3 of the Agreement; or 
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•S 1307 IS 

1 (B) the rate of duty resulting from the 

2 elimination of the tariff in equal annual stages 

3 ending on the date set out in the Schedule of 

4 the United States to Annex 3.3 of the Agree5 ment for the elimination of the tariff. 

6 (f) ARTICLES EXEMPT FROM RELIEF.—No import 

7 relief may be provided under this section on— 

8 (1) any article subject to import relief under 

9 chapter 1 of title II of the Trade Act of 1974 (19 

10 U.S.C. 2251 et seq.); or 

11 (2) imports of a CAFTA–DR article of a 

12 CAFTA–DR country that is a de minimis supplying 

13 country with respect to that article. 

14 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

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

16 import relief may be provided under this subtitle after the 

17 date that is 10 years after the date on which the Agree18 ment enters into force. 

19 (b) EXCEPTION.—If an article for which relief is pro20 vided under this subtitle is an article for which the period 

21 for tariff elimination, set out in the Schedule of the United 

22 States to Annex 3.3 of the Agreement, is greater than 10 

23 years, no relief under this subtitle may be provided for 

24 that article after the date on which that period ends. 
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1 SEC. 315. COMPENSATION AUTHORITY. 

2 For purposes of section 123 of the Trade Act of 1974 

3 (19 U.S.C. 2133), any import relief provided by the Presi4 dent under section 313 shall be treated as action taken 

5 under chapter 1 of title II of such Act. 

6 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

7 Section 202(a)(8) of the Trade Act of 1974 (19 

8 U.S.C. 2252(a)(8)) is amended in the first sentence— 

9 (1) by striking ‘‘and’’; and 

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

11 and title III of the Dominican Republic-Central 

12 America-United States Free Trade Agreement Im13 plementation Act’’. 

14 Subtitle B—Textile and Apparel 

15 Safeguard Measures 

16 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 

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

18 the purpose of adjusting to the obligations of the United 

19 States under the Agreement may be filed with the Presi20 dent by an interested party. Upon the filing of a request, 

21 the President shall review the request to determine, from 

22 information presented in the request, whether to com23 mence consideration of the request. 

24 (b) PUBLICATION OF REQUEST.—If the President de25 termines that the request under subsection (a) provides 

26 the information necessary for the request to be considered, 
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1 the President shall cause to be published in the Federal 

2 Register a notice of commencement of consideration of the 

3 request, and notice seeking public comments regarding the 

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

5 and the dates by which comments and rebuttals must be 

6 received. 

7 SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 

8 (a) DETERMINATION.— 

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

10 made under section 321(b), the President shall de11 termine whether, as a result of the elimination of a 

12 duty under the Agreement, a CAFTA–DR textile or 

13 apparel article of a specified CAFTA–DR country is 

14 being imported into the United States in such in15 creased quantities, in absolute terms or relative to 

16 the domestic market for that article, and under such 

17 conditions as to cause serious damage, or actual 

18 threat thereof, to a domestic industry producing an 

19 article that is like, or directly competitive with, the 

20 imported article. 

21 (2) SERIOUS DAMAGE.—In making a deter22 mination under paragraph (1), the President— 

23 (A) shall examine the effect of increased 

24 imports on the domestic industry, as reflected 

25 in changes in such relevant economic factors as 
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1 output, productivity, utilization of capacity, in2 ventories, market share, exports, wages, em3 ployment, domestic prices, profits, and invest4 ment, none of which is necessarily decisive; and 

5 (B) shall not consider changes in tech6 nology or consumer preference as factors sup7 porting a determination of serious damage or 

8 actual threat thereof. 

9 (3) DEADLINE FOR DETERMINATION.—The 

10 President shall make the determination under para11 graph (1) no later than 30 days after the completion 

12 of any consultations held pursuant to article 3.23.4 

13 of the Agreement. 

14 (b) PROVISION OF RELIEF.— 

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

16 subsection (a) is affirmative, the President may pro17 vide relief from imports of the article that is the 

18 subject of such determination, as provided in para19 graph (2), to the extent that the President deter20 mines necessary to remedy or prevent the serious 

21 damage and to facilitate adjustment by the domestic 

22 industry. 

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

24 President is authorized to provide under this sub25 section with respect to imports of an article is an in-
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1 crease in the rate of duty imposed on the article to 

2 a level that does not exceed the lesser of— 

3 (A) the column 1 general rate of duty im4 posed under the HTS on like articles at the 

5 time the import relief is provided; or 

6 (B) the column 1 general rate of duty im7 posed under the HTS on like articles on the 

8 day before the date on which the Agreement en9 ters into force. 

10 SEC. 323. PERIOD OF RELIEF. 

11 (a) IN GENERAL.—Subject to subsection (b), any im12 port relief that the President provides under subsection 

13 (b) of section 322 may not, in the aggregate, be in effect 

14 for more than 3 years. 

15 (b) EXTENSION.—If the initial period for any import 

16 relief provided under section 322 is less than 3 years, the 

17 President may extend the effective period of any import 

18 relief provided under that section, subject to the limitation 

19 set forth in subsection (a), if the President determines 

20 that— 

21 (1) the import relief continues to be necessary 

22 to remedy or prevent serious damage and to facili23 tate adjustment by the domestic industry to import 

24 competition; and 
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1 (2) there is evidence that the industry is mak2 ing a positive adjustment to import competition. 

3 SEC. 324. ARTICLES EXEMPT FROM RELIEF. 

4 The President may not provide import relief under 

5 this subtitle with respect to any article if— 

6 (1) import relief previously has been provided 

7 under this subtitle with respect to that article; or 

8 (2) the article is subject to import relief 

9 under— 

10 (A) subtitle A; or 

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

12 of 1974. 

13 SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF. 

14 When import relief under this subtitle is terminated 

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

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

17 the provision of such relief. 

18 SEC. 326. TERMINATION OF RELIEF AUTHORITY. 

19 No import relief may be provided under this subtitle 

20 with respect to any article after the date that is 5 years 

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

22 SEC. 327. COMPENSATION AUTHORITY. 

23 For purposes of section 123 of the Trade Act of 1974 

24 (19 U.S.C. 2133), any import relief provided by the Presi-
87 

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1 dent under this subtitle shall be treated as action taken 

2 under chapter 1 of title II of that Act. 

3 SEC. 328. CONFIDENTIAL BUSINESS INFORMATION. 

4 The President may not release information received 

5 in connection with a review under this subtitle which the 

6 President considers to be confidential business informa7 tion unless the party submitting the confidential business 

8 information had notice, at the time of submission, that 

9 such information would be released by the President, or 

10 such party subsequently consents to the release of the in11 formation. To the extent a party submits confidential busi12 ness information, it shall also provide a nonconfidential 

13 version of the information in which the confidential busi14 ness information is summarized or, if necessary, deleted. 

15 Subtitle C—Cases Under Title II of 

16 the Trade Act of 1974 

17 SEC. 331. FINDINGS AND ACTION ON GOODS OF CAFTA–DR 

18 COUNTRIES. 

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

20 initiated under chapter 1 of title II of the Trade Act of 

21 1974, the Commission makes an affirmative determination 

22 (or a determination which the President may treat as an 

23 affirmative determination under such chapter by reason 

24 of section 330(d) of the Tariff Act of 1930), the Commis25 sion shall also find (and report to the President at the 
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1 time such injury determination is submitted to the Presi2 dent) whether imports of the article of each CAFTA–DR 

3 country that qualify as originating goods under section 

4 203(b) are a substantial cause of serious injury or threat 

5 thereof. 

6 (b) PRESIDENTIAL DETERMINATION REGARDING IM7 PORTS OF CAFTA–DR COUNTRIES.—In determining the 

8 nature and extent of action to be taken under chapter 1 

9 of title II of the Trade Act of 1974, the President may 

10 exclude from the action goods of a CAFTA–DR country 

11 with respect to which the Commission has made a negative 

12 finding under subsection (a). 

13 TITLE IV—MISCELLANEOUS 

14 SEC. 401. ELIGIBLE PRODUCTS. 

15 Section 308(4)(A) of the Trade Agreements Act of 

16 1979 (19 U.S.C. 2518(4)(A)) is amended— 

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

18 (2) by striking the period at the end of clause 

19 (iii) and inserting ‘‘; or’’; and 

20 (3) by adding at the end the following new 

21 clause: 

22 ‘‘(iv) a party to the Dominican Re23 public-Central America-United States Free 

24 Trade Agreement, a product or service of 

25 that country or instrumentality which is 
89 

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1 covered under that Agreement for procure2 ment by the United States.’’. 

3 SEC. 402. MODIFICATIONS TO THE CARIBBEAN BASIN ECO4 NOMIC RECOVERY ACT. 

5 (a) FORMER BENEFICIARY COUNTRIES.—Section 

6 212(a)(1) of the Caribbean Basin Economic Recovery Act 

7 (19 U.S.C. 2702(a)(1)) is amended by adding at the end 

8 the following new subparagraph: 

9 ‘‘(F) The term ‘former beneficiary country’ 

10 means a country that ceases to be designated as 

11 a beneficiary country under this title because 

12 the country has become a party to a free trade 

13 agreement with the United States.’’. 

14 (b) COUNTRIES ELIGIBLE FOR DESIGNATION AS

15 BENEFICIARY COUNTRIES.—Section 212(b) of the Carib16 bean Basin Economic Recovery Act (19 U.S.C. 2702(b)) 

17 is amended by striking from the list of countries eligible 

18 for designation as beneficiary countries— 

19 (1) ‘‘Costa Rica’’, effective on the date the 

20 President terminates the designation of Costa Rica 

21 as a beneficiary country pursuant to section 

22 201(a)(3); 

23 (2) ‘‘Dominican Republic’’, effective on the date 

24 the President terminates the designation of the Do-
90 

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1 minican Republic as a beneficiary country pursuant 

2 to section 201(a)(3); 

3 (3) ‘‘El Salvador’’, effective on the date the 

4 President terminates the designation of El Salvador 

5 as a beneficiary country pursuant to section 

6 201(a)(3); 

7 (4) ‘‘Guatemala’’, effective on the date the 

8 President terminates the designation of Guatemala 

9 as a beneficiary country pursuant to section 

10 201(a)(3); 

11 (5) ‘‘Honduras’’, effective on the date the Presi12 dent terminates the designation of Honduras as a 

13 beneficiary country pursuant to section 201(a)(3); 

14 and 

15 (6) ‘‘Nicaragua’’, effective on the date the 

16 President terminates the designation of Nicaragua 

17 as a beneficiary country pursuant to section 

18 201(a)(3). 

19 (c) MATERIALS OF, OR PROCESSING IN, FORMER

20 BENEFICIARY COUNTRIES.—Section 213(a)(1) of the Car21 ibbean Basin Economic Recovery Act (19 U.S.C. 

22 2703(a)(1)) is amended by striking ‘‘the Commonwealth 

23 of Puerto Rico and the United States Virgin Islands’’ and 

24 inserting ‘‘the Commonwealth of Puerto Rico, the United 
91 

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1 States Virgin Islands, and any former beneficiary coun2 try’’. 

3 (d) DEFINITIONS AND SPECIAL RULES.—Section 

4 213(b)(5) of the Caribbean Basin Economic Recovery Act 

5 (19 U.S.C. 2703(b)(5)) is amended by adding at the end 

6 the following new subparagraphs: 

7 ‘‘(G) FORMER CBTPA BENEFICIARY COUN8 TRY.—The term ‘former CBTPA beneficiary 

9 country’ means a country that ceases to be des10 ignated as a CBTPA beneficiary country under 

11 this title because the country has become a 

12 party to a free trade agreement with the United 

13 States. 

14 ‘‘(H) ARTICLES THAT UNDERGO PRODUC15 TION IN A CBTPA BENEFICIARY COUNTRY AND

16 A FORMER CBTPA BENEFICIARY COUNTRY.—(i) 

17 For purposes of determining the eligibility of an 

18 article for preferential treatment under para19 graph (2) or (3), references in either such para20 graph, and in subparagraph (C) of this para21 graph to— 

22 ‘‘(I) a ‘CBTPA beneficiary country’ 

23 shall be considered to include any former 

24 CPTPA beneficiary country, and 
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•S 1307 IS 

1 ‘‘(II) ‘CBTPA beneficiary countries’ 

2 shall be considered to include former 

3 CBTPA beneficiary countries, 

4 if the article, or a good used in the production 

5 of the article, undergoes production in a 

6 CBTPA beneficiary country. 

7 ‘‘(ii) An article that is eligible for pref8 erential treatment under clause (i) shall not be 

9 ineligible for such treatment because the article 

10 is imported directly from a former CBTPA ben11 eficiary country. 

12 ‘‘(iii) Notwithstanding clauses (i) and (ii), 

13 an article that is a good of a former CBTPA 

14 beneficiary country for purposes of section 304 

15 of the Tariff Act of 1930 (19 U.S.C. 1304) or 

16 section 334 of the Uruguay Round Agreements 

17 Act (19 U.S.C. 3592), as the case may be, shall 

18 not be eligible for preferential treatment under 

19 paragraph (2) or (3), unless— 

20 ‘‘(I) it is an article that is a good of 

21 the Dominican Republic under either such 

22 section 304 or 334; and 

23 ‘‘(II) the article, or a good used in the 

24 production of the article, undergoes pro25 duction in Haiti.’’. 
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1 SEC. 403. PERIODIC REPORTS AND MEETINGS ON LABOR 

2 OBLIGATIONS AND LABOR CAPACITY-BUILD3 ING PROVISIONS. 

4 (a) REPORTS TO CONGRESS.— 

5 (1) IN GENERAL.—Not later than the end of 

6 the 2-year period beginning on the date the Agree7 ment enters into force, and not later than the end 

8 of each 2-year period thereafter during the suc9 ceeding 14-year period, the President shall report to 

10 the Congress on the progress made by the CAFTA– 

11 DR countries in— 

12 (A) implementing Chapter Sixteen and 

13 Annex 16.5 of the Agreement; and 

14 (B) implementing the White Paper. 

15 (2) WHITE PAPER.—In this section, the term 

16 ‘‘White Paper’’ means the report of April 2005 of 

17 the Working Group of the Vice Ministers Respon18 sible for Trade and Labor in the Countries of Cen19 tral America and the Dominican Republic entitled 

20 ‘‘The Labor Dimension in Central America and the 

21 Dominican Republic - Building on Progress: 

22 Strengthening Compliance and Enhancing Capac23 ity’’. 

24 (3) CONTENTS OF REPORTS.—Each report 

25 under paragraph (1) shall include the following: 
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1 (A) A description of the progress made by 

2 the Labor Cooperation and Capacity Building 

3 Mechanism established by article 16.5 and 

4 Annex 16.5 of the Agreement, and the Labor 

5 Affairs Council established by article 16.4 of 

6 the Agreement, in achieving their stated goals, 

7 including a description of the capacity-building 

8 projects undertaken, funds received, and results 

9 achieved, in each CAFTA–DR country. 

10 (B) Recommendations on how the United 

11 States can facilitate full implementation of the 

12 recommendations contained in the White Paper. 

13 (C) A description of the work done by the 

14 CAFTA–DR countries with the International 

15 Labor Organization to implement the rec16 ommendations contained in the White Paper, 

17 and the efforts of the CAFTA–DR countries 

18 with international organizations, through the 

19 Labor Cooperation and Capacity Building 

20 Mechanism referred to in subparagraph (A), to 

21 advance common commitments regarding labor 

22 matters. 

23 (D) A summary of public comments re24 ceived on— 
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1 (i) capacity-building efforts by the 

2 United States envisaged by article 16.5 

3 and Annex 16.5 of the Agreement; 

4 (ii) efforts by the United States to fa5 cilitate full implementation of the White 

6 Paper recommendations; and 

7 (iii) the efforts made by the CAFTA– 

8 DR countries to comply with article 16.5 

9 and Annex 16.5 of the Agreement and to 

10 fully implement the White Paper rec11 ommendations, including the progress 

12 made by the CAFTA–DR countries in af13 fording to workers internationally-recog14 nized worker rights through improved ca15 pacity. 

16 (4) SOLICITATION OF PUBLIC COMMENTS.—The 

17 President shall establish a mechanism to solicit pub18 lic comments for purposes of paragraph (3)(D). 

19 (b) PERIODIC MEETINGS OF SECRETARY OF LABOR

20 WITH LABOR MINISTERS OF CAFTA–DR COUNTRIES.— 

21 (1) PERIODIC MEETINGS.—The Secretary of 

22 Labor should take the necessary steps to meet peri23 odically with the labor ministers of the CAFTA–DR 

24 countries to discuss— 
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•S 1307 IS 

1 (A) the operation of the labor provisions of 

2 the Agreement; 

3 (B) progress on the commitments made by 

4 the CAFTA–DR countries to implement the 

5 recommendations contained in the White Paper; 

6 (C) the work of the International Labor 

7 Organization in the CAFTA–DR countries, and 

8 other cooperative efforts, to afford to workers 

9 internationally-recognized worker rights; and 

10 (D) such other matters as the Secretary of 

11 Labor and the labor ministers consider appro12 priate. 

13 (2) INCLUSION IN BIENNIAL REPORTS.—The 

14 President shall include in each report under sub15 section (a), as the President deems appropriate, 

16 summaries of the meetings held pursuant to para17 graph (1). 

Æ