II 

Calendar No. 149

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

JUNE 29, 2005

Reported by Mr. GRASSLEY, without amendment 

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

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

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

4 Trade Agreement Implementation Act’’. 

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

6 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING 

TO, THE AGREEMENT 

Sec. 101. Approval and entry into force of the Agreement. 

Sec. 102. Relationship of the Agreement to United States and State law. 

Sec. 103. Implementing actions in anticipation of entry into force and initial 

regulations. 

Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed actions. 

Sec. 105. Administration of dispute settlement proceedings. 

Sec. 106. Arbitration of claims. 

Sec. 107. Effective dates; effect of termination. 

TITLE II—CUSTOMS PROVISIONS 

Sec. 201. Tariff modifications. 

Sec. 202. Additional duties on certain agricultural goods. 

Sec. 203. Rules of origin. 

Sec. 204. Customs user fees. 

Sec. 205. Retroactive application for certain liquidations and reliquidations of 

textile or apparel goods. 

Sec. 206. Disclosure of incorrect information; false certifications of origin; denial of preferential tariff treatment. 

Sec. 207. Reliquidation of entries. 

Sec. 208. Recordkeeping requirements. 

Sec. 209. Enforcement relating to trade in textile or apparel goods. 

Sec. 210. Regulations. 

TITLE III—RELIEF FROM IMPORTS 

Sec. 301. Definitions. 

Subtitle A—Relief From Imports Benefiting From the Agreement 

Sec. 311. Commencing of action for relief. 

Sec. 312. Commission action on petition. 

Sec. 313. Provision of relief. 

Sec. 314. Termination of relief authority. 

Sec. 315. Compensation authority. 

Sec. 316. Confidential business information. 
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Subtitle B—Textile and Apparel Safeguard Measures 

Sec. 321. Commencement of action for relief. 

Sec. 322. Determination and provision of relief. 

Sec. 323. Period of relief. 

Sec. 324. Articles exempt from relief. 

Sec. 325. Rate after termination of import relief. 

Sec. 326. Termination of relief authority. 

Sec. 327. Compensation authority. 

Sec. 328. Confidential business information. 

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

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

TITLE IV—MISCELLANEOUS 

Sec. 401. Eligible products. 

Sec. 402. Modifications to the Caribbean Basin Economic Recovery Act. 

Sec. 403. Periodic reports and meetings on labor obligations and labor capacitybuilding provisions.

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 
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1 through the reduction and elimination of barriers to 

2 trade in goods and services and to investment; and 

3 (4) to lay the foundation for further coopera4 tion to expand and enhance the benefits of the 

5 Agreement. 

6 SEC. 3. DEFINITIONS. 

7 In this Act: 

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

9 means the Dominican Republic-Central America10 United States Free Trade Agreement approved by 

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

12 (2) CAFTA–DR COUNTRY.—Except as pro13 vided in section 203, the term ‘‘CAFTA–DR coun14 try’’ means—

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

16 Agreement is in force between the United 

17 States and Costa Rica; 

18 (B) the Dominican Republic, for such time 

19 as the Agreement is in force between the 

20 United States and the Dominican Republic; 

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

22 Agreement is in force between the United 

23 States and El Salvador; 
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1 (D) Guatemala, for such time as the 

2 Agreement is in force between the United 

3 States and Guatemala; 

4 (E) Honduras, for such time as the Agree5 ment is in force between the United States and 

6 Honduras; and 

7 (F) Nicaragua, for such time as the Agree8 ment is in force between the United States and 

9 Nicaragua. 

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

11 means the United States International Trade Com12 mission. 

13 (4) HTS.—The term ‘‘HTS’’ means the Har14 monized Tariff Schedule of the United States. 

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

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

17 Annex to the Agreement on Textiles and Clothing 

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

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

20 other than a good listed in Annex 3.29 of the Agree21 ment. 
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1 TITLE I—APPROVAL OF, AND 

2 GENERAL PROVISIONS RE3 LATING TO, THE AGREEMENT 

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

5 AGREEMENT. 

6 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

7 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

8 the Bipartisan Trade Promotion Authority Act of 2002 

9 (19 U.S.C. 3805) and section 151 of the Trade Act of 

10 1974 (19 U.S.C. 2191), the Congress approves—

11 (1) the Dominican Republic-Central America12 United States Free Trade Agreement entered into 

13 on August 5, 2004, with the Governments of Costa 

14 Rica, the Dominican Republic, El Salvador, Guate15 mala, Honduras, and Nicaragua, and submitted to 

16 the Congress on ll, 2005; and 

17 (2) the statement of administrative action pro18 posed to implement the Agreement that was sub19 mitted to the Congress on ll, 2005. 

20 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

21 AGREEMENT.—At such time as the President determines 

22 that countries listed in subsection (a)(1) have taken meas23 ures necessary to comply with the provisions of the Agree24 ment that are to take effect on the date on which the 

25 Agreement enters into force, the President is authorized 
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1 to provide for the Agreement to enter into force with re2 spect to those countries that provide for the Agreement 

3 to enter into force for them. 

4 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

5 STATES AND STATE LAW. 

6 (a) RELATIONSHIP OF AGREEMENT TO UNITED

7 STATES LAW.—

8 (1) UNITED STATES LAW TO PREVAIL IN CON9 FLICT.—No provision of the Agreement, nor the ap10 plication of any such provision to any person or cir11 cumstance, which is inconsistent with any law of the 

12 United States shall have effect. 

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

14 be construed—

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

16 United States, or 

17 (B) to limit any authority conferred under 

18 any law of the United States, 

19 unless specifically provided for in this Act. 

20 (b) RELATIONSHIP OF AGREEMENT TO STATE

21 LAW.—

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

23 application thereof, may be declared invalid as to 

24 any person or circumstance on the ground that the 

25 provision or application is inconsistent with the 
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1 Agreement, except in an action brought by the 

2 United States for the purpose of declaring such law 

3 or application invalid. 

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

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

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

7 State; and 

8 (B) any State law regulating or taxing the 

9 business of insurance. 

10 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI11 VATE REMEDIES.—No person other than the United 

12 States—

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

14 under the Agreement or by virtue of congressional 

15 approval thereof; or 

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

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

18 department, agency, or other instrumentality of the 

19 United States, any State, or any political subdivision 

20 of a State, on the ground that such action or inac21 tion is inconsistent with the Agreement. 

22 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 

23 ENTRY INTO FORCE AND INITIAL REGULA24 TIONS. 

25 (a) IMPLEMENTING ACTIONS.—
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1 (1) PROCLAMATION AUTHORITY.—After the 

2 date of the enactment of this Act—

3 (A) the President may proclaim such ac4 tions, and 

5 (B) other appropriate officers of the 

6 United States Government may issue such reg7 ulations, 

8 as may be necessary to ensure that any provision of 

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

10 effect on the date the Agreement enters into force 

11 is appropriately implemented on such date, but no 

12 such proclamation or regulation may have an effec13 tive date earlier than the date the Agreement enters 

14 into force. 

15 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

16 ACTIONS.—Any action proclaimed by the President 

17 under the authority of this Act that is not subject 

18 to the consultation and layover provisions under sec19 tion 104 may not take effect before the 15th day 

20 after the date on which the text of the proclamation 

21 is published in the Federal Register. 

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

23 day restriction contained in paragraph (2) on the 

24 taking effect of proclaimed actions is waived to the 

25 extent that the application of such restriction would 
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1 prevent the taking effect on the date the Agreement 

2 enters into force of any action proclaimed under this 

3 section. 

4 (b) INITIAL REGULATIONS.—Initial regulations nec5 essary or appropriate to carry out the actions required by 

6 or authorized under this Act or proposed in the statement 

7 of administrative action submitted under section 

8 101(a)(2) to implement the Agreement shall, to the max9 imum extent feasible, be issued within 1 year after the 

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

11 of any implementing action that takes effect on a date 

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

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

14 maximum extent feasible, be issued within 1 year after 

15 such effective date. 

16 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 

17 AND EFFECTIVE DATE OF, PROCLAIMED AC18 TIONS. 

19 If a provision of this Act provides that the implemen20 tation of an action by the President by proclamation is 

21 subject to the consultation and layover requirements of 

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

23 (1) the President has obtained advice regarding 

24 the proposed action from—
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1 (A) the appropriate advisory committees 

2 established under section 135 of the Trade Act 

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

4 (B) the Commission; 

5 (2) the President has submitted to the Com6 mittee on Finance of the Senate and the Committee 

7 on Ways and Means of the House of Representatives 

8 a report that sets forth—

9 (A) the action proposed to be proclaimed 

10 and the reasons therefor; and 

11 (B) the advice obtained under paragraph 

12 (1); 

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

14 the first day on which the requirements set forth in 

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

16 and 

17 (4) the President has consulted with such Com18 mittees regarding the proposed action during the pe19 riod referred to in paragraph (3). 

20 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO21 CEEDINGS. 

22 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—

23 The President is authorized to establish or designate with24 in the Department of Commerce an office that shall be 

25 responsible for providing administrative assistance to pan-
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1 els established under chapter 20 of the Agreement. The 

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

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

4 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated for each fiscal year after 

6 fiscal year 2005 to the Department of Commerce such 

7 sums as may be necessary for the establishment and oper8 ations of the office established or designated under sub9 section (a) and for the payment of the United States share 

10 of the expenses of panels established under chapter 20 of 

11 the Agreement. 

12 SEC. 106. ARBITRATION OF CLAIMS. 

13 The United States is authorized to resolve any claim 

14 against the United States covered by article 

15 10.16.1(a)(i)(C) or article 10.16.1(b)(i)(C) of the Agree16 ment, pursuant to the Investor-State Dispute Settlement 

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

18 Agreement. 

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

20 (a) EFFECTIVE DATES.—Except as provided in sub21 section (b), the provisions of this Act and the amendments 

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

23 enters into force. 

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

25 title take effect on the date of the enactment of this Act. 
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1 (c) TERMINATION OF CAFTA–DR STATUS.—During 

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

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

4 subsection) and the amendments made by this Act shall 

5 cease to have effect with respect to that country. 

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

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

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

9 (other than this subsection) and the amendments made 

10 by this Act shall cease to have effect. 

11 TITLE II—CUSTOMS PROVISIONS 

12 SEC. 201. TARIFF MODIFICATIONS. 

13 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

14 AGREEMENT.—

15 (1) PROCLAMATION AUTHORITY.—The Presi16 dent may proclaim—

17 (A) such modifications or continuation of 

18 any duty, 

19 (B) such continuation of duty-free or ex20 cise treatment, or 

21 (C) such additional duties, 

22 as the President determines to be necessary or ap23 propriate to carry out or apply articles 3.3, 3.5, 3.6, 

24 3.21, 3.26, 3.27, and 3.28, and Annexes 3.3, 3.27, 

25 and 3.28 of the Agreement. 
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1 (2) EFFECT ON GSP STATUS.—Notwithstanding 

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

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

4 the designation of each CAFTA–DR country as a 

5 beneficiary developing country for purposes of title V 

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

7 enters into force with respect to that country. 

8 (3) EFFECT ON CBERA STATUS.—

9 (A) IN GENERAL.—Notwithstanding sec10 tion 212(a) of the Caribbean Basin Economic 

11 Recovery Act (19 U.S.C. 2702(a)), the Presi12 dent shall terminate the designation of each 

13 CAFTA–DR country as a beneficiary country 

14 for purposes of that Act on the date the Agree15 ment enters into force with respect to that 

16 country. 

17 (B) EXCEPTION.—Notwithstanding sub18 paragraph (A), each such country shall be con19 sidered a beneficiary country under section 

20 212(a) of the Caribbean Basin Economic Re21 covery Act, for purposes of—

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

23 771(7)(H) of the Tariff Act of 1930 (19 

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

25 1677(7)(H)); 
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1 (ii) the duty-free treatment provided 

2 under paragraph 12 of Appendix I of the 

3 General Notes to the Schedule of the 

4 United States to Annex 3.3 of the Agree5 ment; and 

6 (iii) section 274(h)(6)(B) of the Inter7 nal Revenue Code of 1986. 

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

9 consultation and layover provisions of section 104, the 

10 President may proclaim—

11 (1) such modifications or continuation of any 

12 duty, 

13 (2) such modifications as the United States 

14 may agree to with a CAFTA–DR country regarding 

15 the staging of any duty treatment set forth in Annex 

16 3.3 of the Agreement, 

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

18 treatment, or 

19 (4) such additional duties, 

20 as the President determines to be necessary or appropriate 

21 to maintain the general level of reciprocal and mutually 

22 advantageous concessions provided for by the Agreement. 

23 (c) CONVERSION TO AD VALOREM RATES.—For pur24 poses of subsections (a) and (b), with respect to any good 

25 for which the base rate in the Schedule of the United 
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1 States to Annex 3.3 of the Agreement is a specific or com2 pound rate of duty, the President may substitute for the 

3 base rate an ad valorem rate that the President deter4 mines to be equivalent to the base rate. 

5 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL6 TURAL GOODS. 

7 (a) GENERAL PROVISIONS.—

8 (1) APPLICABILITY OF SUBSECTION.—This sub9 section applies to additional duties assessed under 

10 subsection (b). 

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

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

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

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

15 of—

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

17 would, at the time the additional duty is im18 posed under subsection (b), apply to a good 

19 classifiable in the same 8-digit subheading of 

20 the HTS as the safeguard good; or 

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

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

23 Agreement enters into force, apply to a good 

24 classifiable in the same 8-digit subheading of 

25 the HTS as the safeguard good. 
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1 (3) SCHEDULE RATE OF DUTY.—For purposes 

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

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

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

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

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

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

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

9 United States to Annex 3.15 of the Agreement; 

10 (B) that qualifies as an originating good 

11 under section 203, except that operations per12 formed in or material obtained from the United 

13 States shall be considered as if the operations 

14 were performed in, and the material was ob15 tained from, a country that is not a party to 

16 the Agreement; and 

17 (C) for which a claim for preferential tariff 

18 treatment under the Agreement has been made. 

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

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

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

22 under—

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

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

25 of 1974 (19 U.S.C. 2251 et seq.). 
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1 (6) TERMINATION.—The assessment of an ad2 ditional duty on a good under subsection (b) shall 

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

4 duty-free treatment must be provided to that good 

5 under the Schedule of the United States to Annex 

6 3.3 of the Agreement. 

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

8 Secretary of the Treasury first assesses an addi9 tional duty in a calendar year on a good under sub10 section (b), the Secretary shall notify the country 

11 whose good is subject to the additional duty in writ12 ing of such action and shall provide to that country 

13 data supporting the assessment of the additional 

14 duty. 

15 (b) ADDITIONAL DUTIES ON SAFEGUARD GOODS.—

16 (1) IN GENERAL.—In addition to any duty pro17 claimed under subsection (a) or (b) of section 201, 

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

19 Treasury shall assess a duty, in the amount deter20 mined under paragraph (2), on a safeguard good of 

21 a CAFTA–DR country imported into the United 

22 States in a calendar year if the Secretary determines 

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

24 that safeguard good of such country that is imported 

25 into the United States in that calendar year exceeds 
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1 130 percent of the volume that is set out for that 

2 safeguard good in the corresponding year in the 

3 table for that country contained in Appendix I of the 

4 General Notes to the Schedule of the United States 

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

6 subsection, year 1 in that table corresponds to the 

7 calendar year in which the Agreement enters into 

8 force. 

9 (2) CALCULATION OF ADDITIONAL DUTY.—The 

10 additional duty on a safeguard good under this sub11 section shall be—

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

13 subheading 1202.10.80, 1202.20.80, 

14 2008.11.15, 2008.11.35, or 2008.11.60 of the 

15 HTS—

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

17 equal to 100 percent of the excess of the 

18 applicable NTR (MFN) rate of duty over 

19 the schedule rate of duty; 

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

21 equal to 75 percent of the excess of the ap22 plicable NTR (MFN) rate of duty over the 

23 schedule rate of duty; and 

24 (iii) in years 11 through 14, an 

25 amount equal to 50 percent of the excess 
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1 of the applicable NTR (MFN) rate of duty 

2 over the schedule rate of duty; and 

3 (B) in the case of any other safeguard 

4 good—

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

6 equal to 100 percent of the excess of the 

7 applicable NTR (MFN) rate of duty over 

8 the schedule rate of duty; 

9 (ii) in years 15 through 17, an 

10 amount equal to 75 percent of the excess 

11 of the applicable NTR (MFN) rate of duty 

12 over the schedule rate of duty; and 

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

14 equal to 50 percent of the excess of the ap15 plicable NTR (MFN) rate of duty over the 

16 schedule rate of duty. 

17 SEC. 203. RULES OF ORIGIN. 

18 (a) APPLICATION AND INTERPRETATION.—In this 

19 section: 

20 (1) TARIFF CLASSIFICATION.—The basis for 

21 any tariff classification is the HTS. 

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

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

24 subheading, such reference shall be a reference to a 

25 chapter, heading, or subheading of the HTS. 
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1 (3) COST OR VALUE.—Any cost or value re2 ferred to in this section shall be recorded and main3 tained in accordance with the generally accepted ac4 counting principles applicable in the territory of the 

5 country in which the good is produced (whether the 

6 United States or another CAFTA–DR country). 

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

8 and for purposes of implementing the preferential tariff 

9 treatment provided for under the Agreement, except as 

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

11 good if—

12 (1) the good is a good wholly obtained or pro13 duced entirely in the territory of one or more of the 

14 CAFTA–DR countries; 

15 (2) the good—

16 (A) is produced entirely in the territory of 

17 one or more of the CAFTA–DR countries, 

18 and—

19 (i) each of the nonoriginating mate20 rials used in the production of the good 

21 undergoes an applicable change in tariff 

22 classification specified in Annex 4.1 of the 

23 Agreement; or 

24 (ii) the good otherwise satisfies any 

25 applicable regional value-content or other 
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1 requirements specified in Annex 4.1 of the 

2 Agreement; and 

3 (B) satisfies all other applicable require4 ments of this section; or 

5 (3) the good is produced entirely in the terri6 tory of one or more of the CAFTA–DR countries, 

7 exclusively from materials described in paragraph 

8 (1) or (2). 

9 (c) REGIONAL VALUE-CONTENT.—

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

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

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

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

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

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

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

17 paragraph (3). 

18 (2) BUILD-DOWN METHOD.—

19 (A) IN GENERAL.—The regional value-con20 tent of a good may be calculated on the basis 

21 of the following build-down method:

AV–VNM

RVC = ———— × 100

AV

22 (B) DEFINITIONS.—In subparagraph (A): 
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1 (i) RVC.—The term ‘‘RVC’’ means 

2 the regional value-content of the good, ex3 pressed as a percentage. 

4 (ii) AV.—The term ‘‘AV’’ means the 

5 adjusted value of the good. 

6 (iii) VNM.—The term ‘‘VNM’’ means 

7 the value of nonoriginating materials that 

8 are acquired and used by the producer in 

9 the production of the good, but does not 

10 include the value of a material that is self11 produced. 

12 (3) BUILD-UP METHOD.—

13 (A) IN GENERAL.—The regional value-con14 tent of a good may be calculated on the basis 

15 of the following build-up method:

VOM

RVC = ———— × 100

AV

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

17 (i) RVC.—The term ‘‘RVC’’ means 

18 the regional value-content of the good, ex19 pressed as a percentage. 

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

21 adjusted value of the good. 

22 (iii) VOM.—The term ‘‘VOM’’ means 

23 the value of originating materials that are 
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1 acquired or self-produced, and used by the 

2 producer in the production of the good. 

3 (4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE

4 GOODS.—

5 (A) IN GENERAL.—For purposes of sub6 section (b)(2), the regional value-content of an 

7 automotive good referred to in Annex 4.1 of the 

8 Agreement may be calculated by the importer, 

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

10 of the following net cost method:

NC–VNM

RVC = ———— × 100

NC

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

12 (i) AUTOMOTIVE GOOD.—The term 

13 ‘‘automotive good’’ means a good provided 

14 for in any of subheadings 8407.31 through 

15 8407.34, subheading 8408.20, heading 

16 8409, or in any of headings 8701 through 

17 8708. 

18 (ii) RVC.—The term ‘‘RVC’’ means 

19 the regional value-content of the auto20 motive good, expressed as a percentage. 

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

22 net cost of the automotive good. 

23 (iv) VNM.—The term ‘‘VNM’’ means 

24 the value of nonoriginating materials that 
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1 are acquired and used by the producer in 

2 the production of the automotive good, but 

3 does not include the value of a material 

4 that is self-produced. 

5 (C) MOTOR VEHICLES.—

6 (i) BASIS OF CALCULATION.—For 

7 purposes of determining the regional value8 content under subparagraph (A) for an 

9 automotive good that is a motor vehicle 

10 provided for in any of headings 8701 

11 through 8705, an importer, exporter, or 

12 producer may average the amounts cal13 culated under the formula contained in 

14 subparagraph (A), over the producer’s fis15 cal year—

16 (I) with respect to all motor vehi17 cles in any 1 of the categories de18 scribed in clause (ii); or 

19 (II) with respect to all motor ve20 hicles in any such category that are 

21 exported to the territory of one or 

22 more of the CAFTA–DR countries. 

23 (ii) CATEGORIES.—A category is de24 scribed in this clause if it—
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1 (I) is the same model line of 

2 motor vehicles, is in the same class of 

3 vehicles, and is produced in the same 

4 plant in the territory of a CAFTA–

5 DR country, as the good described in 

6 clause (i) for which regional value7 content is being calculated; 

8 (II) is the same class of motor 

9 vehicles, and is produced in the same 

10 plant in the territory of a CAFTA–

11 DR country, as the good described in 

12 clause (i) for which regional value13 content is being calculated; or 

14 (III) is the same model line of 

15 motor vehicles produced in the terri16 tory of a CAFTA–DR country as the 

17 good described in clause (i) for which 

18 regional value-content is being cal19 culated. 

20 (D) OTHER AUTOMOTIVE GOODS.—For 

21 purposes of determining the regional value-con22 tent under subparagraph (A) for automotive 

23 goods provided for in any of subheadings 

24 8407.31 through 8407.34, in subheading 

25 8408.20, or in heading 8409, 8706, 8707, or 
27

•S 1307 RS 

1 8708, that are produced in the same plant, an 

2 importer, exporter, or producer may—

3 (i) average the amounts calculated 

4 under the formula contained in subpara5 graph (A) over—

6 (I) the fiscal year of the motor 

7 vehicle producer to whom the auto8 motive goods are sold, 

9 (II) any quarter or month, or 

10 (III) its own fiscal year, 

11 if the goods were produced during the fis12 cal year, quarter, or month that is the 

13 basis for the calculation; 

14 (ii) determine the average referred to 

15 in clause (i) separately for such goods sold 

16 to 1 or more motor vehicle producers; or 

17 (iii) make a separate determination 

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

19 goods that are exported to the territory of 

20 one or more of the CAFTA–DR countries. 

21 (E) CALCULATING NET COST.—The im22 porter, exporter, or producer shall, consistent 

23 with the provisions regarding allocation of costs 

24 set out in generally accepted accounting prin-
28

•S 1307 RS 

1 ciples, determine the net cost of an automotive 

2 good under subparagraph (B) by—

3 (i) calculating the total cost incurred 

4 with respect to all goods produced by the 

5 producer of the automotive good, sub6 tracting any sales promotion, marketing 

7 and after-sales service costs, royalties, 

8 shipping and packing costs, and nonallow9 able interest costs that are included in the 

10 total cost of all such goods, and then rea11 sonably allocating the resulting net cost of 

12 those goods to the automotive good; 

13 (ii) calculating the total cost incurred 

14 with respect to all goods produced by that 

15 producer, reasonably allocating the total 

16 cost to the automotive good, and then sub17 tracting any sales promotion, marketing 

18 and after-sales service costs, royalties, 

19 shipping and packing costs, and nonallow20 able interest costs that are included in the 

21 portion of the total cost allocated to the 

22 automotive good; or 

23 (iii) reasonably allocating each cost 

24 that forms part of the total cost incurred 

25 with respect to the automotive good so that 
29

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1 the aggregate of all such costs does not in2 clude any sales promotion, marketing and 

3 after-sales service costs, royalties, shipping 

4 and packing costs, or nonallowable interest 

5 costs. 

6 (d) VALUE OF MATERIALS.—

7 (1) IN GENERAL.—For the purpose of calcu8 lating the regional value-content of a good under 

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

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

11 material is—

12 (A) in the case of a material that is im13 ported by the producer of the good, the ad14 justed value of the material; 

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

16 the territory in which the good is produced, the 

17 value, determined in accordance with Articles 1 

18 through 8, Article 15, and the corresponding in19 terpretive notes of the Agreement on Implemen20 tation of Article VII of the General Agreement 

21 on Tariffs and Trade 1994 referred to in sec22 tion 101(d)(8) of the Uruguay Round Agree23 ments Act, as set forth in regulations promul24 gated by the Secretary of the Treasury pro-
30

•S 1307 RS 

1 viding for the application of such Articles in the 

2 absence of an importation; or 

3 (C) in the case of a material that is self4 produced, the sum of—

5 (i) all expenses incurred in the pro6 duction of the material, including general 

7 expenses; and 

8 (ii) an amount for profit equivalent to 

9 the profit added in the normal course of 

10 trade. 

11 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

12 MATERIALS.—

13 (A) ORIGINATING MATERIAL.—The fol14 lowing expenses, if not included in the value of 

15 an originating material calculated under para16 graph (1), may be added to the value of the 

17 originating material: 

18 (i) The costs of freight, insurance, 

19 packing, and all other costs incurred in 

20 transporting the material within or be21 tween the territory of one or more of the 

22 CAFTA–DR countries to the location of 

23 the producer. 

24 (ii) Duties, taxes, and customs broker25 age fees on the material paid in the terri-
31

•S 1307 RS 

1 tory of one or more of the CAFTA–DR 

2 countries, other than duties or taxes that 

3 are waived, refunded, refundable, or other4 wise recoverable, including credit against 

5 duty or tax paid or payable. 

6 (iii) The cost of waste and spoilage re7 sulting from the use of the material in the 

8 production of the good, less the value of 

9 renewable scrap or byproducts. 

10 (B) NONORIGINATING MATERIAL.—The 

11 following expenses, if included in the value of a 

12 nonoriginating material calculated under para13 graph (1), may be deducted from the value of 

14 the nonoriginating material: 

15 (i) The costs of freight, insurance, 

16 packing, and all other costs incurred in 

17 transporting the material within or be18 tween the territory of one or more of the 

19 CAFTA–DR countries to the location of 

20 the producer. 

21 (ii) Duties, taxes, and customs broker22 age fees on the material paid in the terri23 tory of one or more of the CAFTA–DR 

24 countries, other than duties or taxes that 

25 are waived, refunded, refundable, or other-
32

•S 1307 RS 

1 wise recoverable, including credit against 

2 duty or tax paid or payable. 

3 (iii) The cost of waste and spoilage re4 sulting from the use of the material in the 

5 production of the good, less the value of 

6 renewable scrap or byproducts. 

7 (iv) The cost of originating materials 

8 used in the production of the nonorigi9 nating material in the territory of one or 

10 more of the CAFTA–DR countries. 

11 (e) ACCUMULATION.—

12 (1) ORIGINATING MATERIALS USED IN PRODUC13 TION OF GOODS OF ANOTHER COUNTRY.—Origi14 nating materials from the territory of one or more 

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

16 production of a good in the territory of another 

17 CAFTA–DR country shall be considered to originate 

18 in the territory of that other country. 

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

20 produced in the territory of one or more of the 

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

22 originating good if the good satisfies the require23 ments of subsection (b) and all other applicable re24 quirements of this section. 
33

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1 (f) DE MINIMIS AMOUNTS OF NONORIGINATING MA2 TERIALS.—

3 (1) IN GENERAL.—Except as provided in para4 graphs (2) and (3), a good that does not undergo a 

5 change in tariff classification pursuant to Annex 4.1 

6 of the Agreement is an originating good if—

7 (A) the value of all nonoriginating mate8 rials that—

9 (i) are used in the production of the 

10 good, and 

11 (ii) do not undergo the applicable 

12 change in tariff classification (set out in 

13 Annex 4.1 of the Agreement), 

14 does not exceed 10 percent of the adjusted 

15 value of the good; 

16 (B) the good meets all other applicable re17 quirements of this section; and 

18 (C) the value of such nonoriginating mate19 rials is included in the value of nonoriginating 

20 materials for any applicable regional value-con21 tent requirement for the good. 

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

23 apply to the following: 

24 (A) A nonoriginating material provided for 

25 in chapter 4, or a nonoriginating dairy prepara-
34

•S 1307 RS 

1 tion containing over 10 percent by weight of 

2 milk solids provided for in subheading 1901.90 

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

4 good provided for in chapter 4. 

5 (B) A nonoriginating material provided for 

6 in chapter 4, or a nonoriginating dairy prepara7 tion containing over 10 percent by weight of 

8 milk solids provided for in subheading 1901.90, 

9 that is used in the production of the following 

10 goods: 

11 (i) Infant preparations containing 

12 over 10 percent by weight of milk solids 

13 provided for in subheading 1901.10. 

14 (ii) Mixes and doughs, containing over 

15 25 percent by weight of butterfat, not put 

16 up for retail sale, provided for in sub17 heading 1901.20. 

18 (iii) Dairy preparations containing 

19 over 10 percent by weight of milk solids 

20 provided for in subheading 1901.90 or 

21 2106.90. 

22 (iv) Goods provided for in heading 

23 2105. 

24 (v) Beverages containing milk pro25 vided for in subheading 2202.90. 
35

•S 1307 RS 

1 (vi) Animal feeds containing over 10 

2 percent by weight of milk solids provided 

3 for in subheading 2309.90. 

4 (C) A nonoriginating material provided for 

5 in heading 0805, or any of subheadings 

6 2009.11 through 2009.39, that is used in the 

7 production of a good provided for in any of sub8 headings 2009.11 through 2009.39, or in fruit 

9 or vegetable juice of any single fruit or vege10 table, fortified with minerals or vitamins, con11 centrated or unconcentrated, provided for in 

12 subheading 2106.90 or 2202.90. 

13 (D) A nonoriginating material provided for 

14 in heading 0901 or 2101 that is used in the 

15 production of a good provided for in heading 

16 0901 or 2101. 

17 (E) A nonoriginating material provided for 

18 in heading 1006 that is used in the production 

19 of a good provided for in heading 1102 or 1103 

20 or subheading 1904.90. 

21 (F) A nonoriginating material provided for 

22 in chapter 15 that is used in the production of 

23 a good provided for in chapter 15. 

24 (G) A nonoriginating material provided for 

25 in heading 1701 that is used in the production 
36

•S 1307 RS 

1 of a good provided for in any of headings 1701 

2 through 1703. 

3 (H) A nonoriginating material provided for 

4 in chapter 17 that is used in the production of 

5 a good provided for in subheading 1806.10. 

6 (I) Except as provided in subparagraphs 

7 (A) through (H) and Annex 4.1 of the Agree8 ment, a nonoriginating material used in the 

9 production of a good provided for in any of 

10 chapters 1 through 24, unless the nonorigi11 nating material is provided for in a different 

12 subheading than the good for which origin is 

13 being determined under this section. 

14 (3) TEXTILE OR APPAREL GOODS.—

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

16 subparagraph (B), a textile or apparel good 

17 that is not an originating good because certain 

18 fibers or yarns used in the production of the 

19 component of the good that determines the tar20 iff classification of the good do not undergo an 

21 applicable change in tariff classification, set out 

22 in Annex 4.1 of the Agreement, shall be consid23 ered to be an originating good if—

24 (i) the total weight of all such fibers 

25 or yarns in that component is not more 
37

•S 1307 RS 

1 than 10 percent of the total weight of that 

2 component; or 

3 (ii) the yarns are those described in 

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

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

6 3203(b)(3)(B)(vi)(IV))(as in effect on the 

7 date of the enactment of this Act). 

8 (B) CERTAIN TEXTILE OR APPAREL

9 GOODS.—A textile or apparel good containing 

10 elastomeric yarns in the component of the good 

11 that determines the tariff classification of the 

12 good shall be considered to be an originating 

13 good only if such yarns are wholly formed in 

14 the territory of a CAFTA–DR country. 

15 (C) YARN, FABRIC, OR FIBER.—For pur16 poses of this paragraph, in the case of a good 

17 that is a yarn, fabric, or fiber, the term ‘‘com18 ponent of the good that determines the tariff 

19 classification of the good’’ means all of the fi20 bers in the good. 

21 (g) FUNGIBLE GOODS AND MATERIALS.—

22 (1) IN GENERAL.—

23 (A) CLAIM FOR PREFERENTIAL TARIFF

24 TREATMENT.—A person claiming that a fun25 gible good or fungible material is an originating 
38

•S 1307 RS 

1 good may base the claim either on the physical 

2 segregation of the fungible good or fungible ma3 terial or by using an inventory management 

4 method with respect to the fungible good or 

5 fungible material. 

6 (B) INVENTORY MANAGEMENT METHOD.—

7 In this subsection, the term ‘‘inventory manage8 ment method’’ means—

9 (i) averaging; 

10 (ii) ‘‘last-in, first-out’’; 

11 (iii) ‘‘first-in, first-out’’; or 

12 (iv) any other method—

13 (I) recognized in the generally 

14 accepted accounting principles of the 

15 CAFTA–DR country in which the 

16 production is performed; or 

17 (II) otherwise accepted by that 

18 country. 

19 (2) ELECTION OF INVENTORY METHOD.—A 

20 person selecting an inventory management method 

21 under paragraph (1) for a particular fungible good 

22 or fungible material shall continue to use that meth23 od for that fungible good or fungible material 

24 throughout the fiscal year of that person. 

25 (h) ACCESSORIES, SPARE PARTS, OR TOOLS.—
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•S 1307 RS 

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

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

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

4 accessories, spare parts, or tools shall—

5 (A) be treated as originating goods if the 

6 good is an originating good; and 

7 (B) be disregarded in determining whether 

8 all the nonoriginating materials used in the pro9 duction of the good undergo the applicable 

10 change in tariff classification set out in Annex 

11 4.1 of the Agreement. 

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

13 only if—

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

15 are classified with and not invoiced separately 

16 from the good, regardless of whether they ap17 pear specified or separately identified in the in18 voice for the good; and 

19 (B) the quantities and value of the acces20 sories, spare parts, or tools are customary for 

21 the good. 

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

23 subject to a regional value-content requirement, the 

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

25 be taken into account as originating or nonorigi-
40

•S 1307 RS 

1 nating materials, as the case may be, in calculating 

2 the regional value-content of the good. 

3 (i) PACKAGING MATERIALS AND CONTAINERS FOR

4 RETAIL SALE.—Packaging materials and containers in 

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

6 the good, shall be disregarded in determining whether all 

7 the nonoriginating materials used in the production of the 

8 good undergo the applicable change in tariff classification 

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

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

11 value of such packaging materials and containers shall be 

12 taken into account as originating or nonoriginating mate13 rials, as the case may be, in calculating the regional value14 content of the good. 

15 (j) PACKING MATERIALS AND CONTAINERS FOR

16 SHIPMENT.—Packing materials and containers for ship17 ment shall be disregarded in determining whether a good 

18 is an originating good. 

19 (k) INDIRECT MATERIALS.—An indirect material 

20 shall be treated as an originating material without regard 

21 to where it is produced. 

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

23 undergone production necessary to qualify as an origi24 nating good under subsection (b) shall not be considered 
41

•S 1307 RS 

1 to be an originating good if, subsequent to that produc2 tion, the good—

3 (1) undergoes further production or any other 

4 operation outside the territories of the CAFTA–DR 

5 countries, other than unloading, reloading, or any 

6 other operation necessary to preserve the good in 

7 good condition or to transport the good to the terri8 tory of a CAFTA–DR country; or 

9 (2) does not remain under the control of cus10 toms authorities in the territory of a country other 

11 than a CAFTA–DR country. 

12 (m) GOODS CLASSIFIABLE AS GOODS PUT UP IN

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

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

15 sets for retail sale as provided for in General Rule of Inter16 pretation 3 of the HTS shall not be considered to be origi17 nating goods unless—

18 (1) each of the goods in the set is an origi19 nating good; or 

20 (2) the total value of the nonoriginating goods 

21 in the set does not exceed—

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

23 10 percent of the adjusted value of the set; or 
42

•S 1307 RS 

1 (B) in the case of a good, other than a tex2 tile or apparel good, 15 percent of the adjusted 

3 value of the set. 

4 (n) DEFINITIONS.—In this section: 

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

6 value’’ means the value determined in accordance 

7 with Articles 1 through 8, Article 15, and the cor8 responding interpretive notes of the Agreement on 

9 Implementation of Article VII of the General Agree10 ment on Tariffs and Trade 1994 referred to in sec11 tion 101(d)(8) of the Uruguay Round Agreements 

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

13 charges, or expenses incurred for transportation, in14 surance, and related services incident to the inter15 national shipment of the merchandise from the coun16 try of exportation to the place of importation. 

17 (2) CAFTA–DR COUNTRY.—The term 

18 ‘‘CAFTA–DR country’’ means—

19 (A) the United States; and 

20 (B) Costa Rica, the Dominican Republic, 

21 El Salvador, Guatemala, Honduras, or Nica22 ragua, for such time as the Agreement is in 

23 force between the United States and that coun24 try. 
43

•S 1307 RS 

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

2 ‘‘class of motor vehicles’’ means any one of the fol3 lowing categories of motor vehicles: 

4 (A) Motor vehicles provided for in sub5 heading 8701.20, 8704.10, 8704.22, 8704.23, 

6 8704.32, or 8704.90, or heading 8705 or 8706, 

7 or motor vehicles for the transport of 16 or 

8 more persons provided for in subheading 

9 8702.10 or 8702.90. 

10 (B) Motor vehicles provided for in sub11 heading 8701.10 or any of subheadings 

12 8701.30 through 8701.90. 

13 (C) Motor vehicles for the transport of 15 

14 or fewer persons provided for in subheading 

15 8702.10 or 8702.90, or motor vehicles provided 

16 for in subheading 8704.21 or 8704.31. 

17 (D) Motor vehicles provided for in any of 

18 subheadings 8703.21 through 8703.90. 

19 (4) FUNGIBLE GOOD OR FUNGIBLE MATE20 RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate21 rial’’ means a good or material, as the case may be, 

22 that is interchangeable with another good or mate23 rial for commercial purposes and the properties of 

24 which are essentially identical to such other good or 

25 material. 
44

•S 1307 RS 

1 (5) GENERALLY ACCEPTED ACCOUNTING PRIN2 CIPLES.—The term ‘‘generally accepted accounting 

3 principles’’ means the recognized consensus or sub4 stantial authoritative support in the territory of a 

5 CAFTA–DR country with respect to the recording 

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

7 the disclosure of information, and the preparation of 

8 financial statements. The principles may encompass 

9 broad guidelines of general application as well as de10 tailed standards, practices, and procedures. 

11 (6) GOODS WHOLLY OBTAINED OR PRODUCED

12 ENTIRELY IN THE TERRITORY OF ONE OR MORE OF

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

14 wholly obtained or produced entirely in the territory 

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

16 means—

17 (A) plants and plant products harvested or 

18 gathered in the territory of one or more of the 

19 CAFTA–DR countries; 

20 (B) live animals born and raised in the ter21 ritory of one or more of the CAFTA–DR coun22 tries; 

23 (C) goods obtained in the territory of one 

24 or more of the CAFTA–DR countries from live 

25 animals; 
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•S 1307 RS 

1 (D) goods obtained from hunting, trap2 ping, fishing or aquaculture conducted in the 

3 territory of one or more of the CAFTA–DR 

4 countries; 

5 (E) minerals and other natural resources 

6 not included in subparagraphs (A) through (D) 

7 that are extracted or taken in the territory of 

8 one or more of the CAFTA–DR countries; 

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

10 taken from the sea, seabed, or subsoil outside 

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

12 countries by vessels registered or recorded with 

13 a CAFTA–DR country and flying the flag of 

14 that country; 

15 (G) goods produced on board factory ships 

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

17 if such factory ships are registered or recorded 

18 with that CAFTA–DR country and fly the flag 

19 of that country; 

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

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

22 seabed or subsoil outside territorial waters, if a 

23 CAFTA–DR country has rights to exploit such 

24 seabed or subsoil; 
46

•S 1307 RS 

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

2 goods are obtained by a CAFTA–DR country or 

3 a person of a CAFTA–DR country and not 

4 processed in the territory of a country other 

5 than a CAFTA–DR country; 

6 (J) waste and scrap derived from—

7 (i) manufacturing or processing oper8 ations in the territory of one or more of 

9 the CAFTA–DR countries; or 

10 (ii) used goods collected in the terri11 tory of one or more of the CAFTA–DR 

12 countries, if such goods are fit only for the 

13 recovery of raw materials; 

14 (K) recovered goods derived in the terri15 tory of one or more of the CAFTA–DR coun16 tries from used goods, and used in the territory 

17 of a CAFTA–DR country in the production of 

18 remanufactured goods; and 

19 (L) goods produced in the territory of one 

20 or more of the CAFTA–DR countries exclu21 sively from—

22 (i) goods referred to in any of sub23 paragraphs (A) through (J), or 

24 (ii) the derivatives of goods referred 

25 to in clause (i), 
47

•S 1307 RS 

1 at any stage of production. 

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

3 goods’’ means identical goods as defined in the 

4 Agreement on Implementation of Article VII of the 

5 General Agreement on Tariffs and Trade 1994 re6 ferred to in section 101(d)(8) of the Uruguay Round 

7 Agreements Act; 

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

9 material’’ means a good used in the production, test10 ing, or inspection of a good but not physically incor11 porated into the good, or a good used in the mainte12 nance of buildings or the operation of equipment as13 sociated with the production of a good, including—

14 (A) fuel and energy; 

15 (B) tools, dies, and molds; 

16 (C) spare parts and materials used in the 

17 maintenance of equipment or buildings; 

18 (D) lubricants, greases, compounding ma19 terials, and other materials used in production 

20 or used to operate equipment or buildings; 

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

22 safety equipment, and supplies; 

23 (F) equipment, devices, and supplies used 

24 for testing or inspecting the good; 

25 (G) catalysts and solvents; and 
48

•S 1307 RS 

1 (H) any other goods that are not incor2 porated into the good but the use of which in 

3 the production of the good can reasonably be 

4 demonstrated to be a part of that production. 

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

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

7 including a part or an ingredient. 

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

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

10 originating material that is produced by a producer 

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

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

13 means a group of motor vehicles having the same 

14 platform or model name. 

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

16 total cost minus sales promotion, marketing, and 

17 after-sales service costs, royalties, shipping and 

18 packing costs, and non-allowable interest costs that 

19 are included in the total cost. 

20 (13) NONALLOWABLE INTEREST COSTS.—The 

21 term ‘‘nonallowable interest costs’’ means interest 

22 costs incurred by a producer that exceed 700 basis 

23 points above the applicable official interest rate for 

24 comparable maturities of the CAFTA–DR country 

25 in which the producer is located. 
49

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1 (14) NONORIGINATING GOOD OR NONORIGI2 NATING MATERIAL.—The terms ‘‘nonoriginating 

3 good’’ and ‘‘nonoriginating material’’ mean a good 

4 or material, as the case may be, that does not qual5 ify as originating under this section. 

6 (15) PACKING MATERIALS AND CONTAINERS

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

8 containers for shipment’’ means the goods used to 

9 protect a good during its transportation and does 

10 not include the packaging materials and containers 

11 in which a good is packaged for retail sale. 

12 (16) PREFERENTIAL TARIFF TREATMENT.—

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

14 customs duty rate, and the treatment under article 

15 3.10.4 of the Agreement, that are applicable to an 

16 originating good pursuant to the Agreement. 

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

18 a person who engages in the production of a good 

19 in the territory of a CAFTA–DR country. 

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

21 means growing, mining, harvesting, fishing, raising, 

22 trapping, hunting, manufacturing, processing, as23 sembling, or disassembling a good. 

24 (19) REASONABLY ALLOCATE.—The term ‘‘rea25 sonably allocate’’ means to apportion in a manner 
50

•S 1307 RS 

1 that would be appropriate under generally accepted 

2 accounting principles. 

3 (20) RECOVERED GOODS.—The term ‘‘recov4 ered goods’’ means materials in the form of indi5 vidual parts that are the result of—

6 (A) the disassembly of used goods into in7 dividual parts; and 

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

9 other processing that is necessary for improve10 ment to sound working condition of such indi11 vidual parts. 

12 (21) REMANUFACTURED GOOD.—The term ‘‘re13 manufactured good’’ means a good that is classified 

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

15 or 9032, other than a good classified under heading 

16 8418 or 8516, and that—

17 (A) is entirely or partially comprised of re18 covered goods; and 

19 (B) has a similar life expectancy and en20 joys a factory warranty similar to such a new 

21 good. 

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

23 means all product costs, period costs, and other 

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

25 more of the CAFTA–DR countries. 
51

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

2 consumed in the production of goods. 

3 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.—

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

5 to proclaim, as part of the HTS—

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

7 the Agreement; and 

8 (B) any additional subordinate category 

9 necessary to carry out this title consistent with 

10 the Agreement. 

11 (2) FABRICS AND YARNS NOT AVAILABLE IN

12 COMMERCIAL QUANTITIES IN THE UNITED

13 STATES.—The President is authorized to proclaim 

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

15 3.25 of the Agreement in an unrestricted quantity, 

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

17 (3) MODIFICATIONS.—

18 (A) IN GENERAL.—Subject to the consulta19 tion and layover provisions of section 104, the 

20 President may proclaim modifications to the 

21 provisions proclaimed under the authority of 

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

23 chapters 50 through 63, as included in Annex 

24 4.1 of the Agreement. 
52

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1 (B) ADDITIONAL PROCLAMATIONS.—Not2 withstanding subparagraph (A), and subject to 

3 the consultation and layover provisions of sec4 tion 104, the President may proclaim before the 

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

6 of the enactment of this Act, modifications to 

7 correct any typographical, clerical, or other non8 substantive technical error regarding the provi9 sions of chapters 50 through 63, as included in 

10 Annex 4.1 of the Agreement.

11 (4) FABRICS, YARNS, OR FIBERS NOT AVAIL12 ABLE IN COMMERCIAL QUANTITIES IN THE CAFTA–

13 DR COUNTRIES.—

14 (A) IN GENERAL.—Notwithstanding para15 graph 3(A), the list of fabrics, yarns, and fibers 

16 set out in Annex 3.25 of the Agreement may be 

17 modified as provided for in this paragraph. 

18 (B) DEFINITIONS.—In this paragraph: 

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

20 means the government of a CAFTA–DR 

21 country other than the United States, a 

22 potential or actual purchaser of a textile or 

23 apparel good, or a potential or actual sup24 plier of a textile or apparel good. 
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1 (ii) All references to ‘‘day’’ and 

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

3 legal holidays. 

4 (C) REQUESTS TO ADD FABRICS, YARNS, 

5 OR FIBERS.—(i) An interested entity may re6 quest the President to determine that a fabric, 

7 yarn, or fiber is not available in commercial 

8 quantities in a timely manner in the CAFTA–

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

10 fiber to the list in Annex 3.25 of the Agreement 

11 in a restricted or unrestricted quantity. 

12 (ii) After receiving a request under clause 

13 (i), the President may determine whether—

14 (I) the fabric, yarn, or fiber is avail15 able in commercial quantities in a timely 

16 manner in the CAFTA–DR countries; or 

17 (II) any interested entity objects to 

18 the request. 

19 (iii) The President may, within the time 

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

21 fabric, yarn, or fiber that is the subject of a re22 quest submitted under clause (i) is added to the 

23 list in Annex 3.25 of the Agreement in an unre24 stricted quantity, or in any restricted quantity 
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1 that the President may establish, if the Presi2 dent determines under clause (ii) that—

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

4 available in commercial quantities in a 

5 timely manner in the CAFTA–DR coun6 tries; or 

7 (II) no interested entity has objected 

8 to the request. 

9 (iv) The time periods within which the 

10 President may issue a proclamation under 

11 clause (iii) are—

12 (I) not later than 30 days after the 

13 date on which the request is submitted 

14 under clause (i); or 

15 (II) not later than 44 days after the 

16 request is submitted, if the President de17 termines, within 30 days after the date on 

18 which the request is submitted, that the 

19 President does not have sufficient informa20 tion to make a determination under clause 

21 (ii). 

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

23 proclamation made under clause (iii) shall take 

24 effect on the date on which the text of the proc25 lamation is published in the Federal Register. 
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1 (vi) Not later than 6 months after pro2 claiming under clause (iii) that a fabric, yarn, 

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

4 the Agreement in a restricted quantity, the 

5 President may eliminate the restriction if the 

6 President determines that the fabric, yarn, or 

7 fiber is not available in commercial quantities in 

8 a timely manner in the CAFTA–DR countries. 

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

10 after an interested entity submits a request 

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

12 not, within the applicable time period specified 

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

14 under subparagraph (C)(ii) regarding the re15 quest, the fabric, yarn, or fiber that is the sub16 ject of the request shall be considered to be 

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

18 Annex 3.25 of the Agreement beginning—

19 (i) 45 days after the date on which 

20 the request was submitted; or 

21 (ii) 60 days after the date on which 

22 the request was submitted, if the President 

23 made a determination under subparagraph 

24 (C)(iv)(II). 
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1 (E) REQUESTS TO RESTRICT OR REMOVE

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

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

4 President to restrict the quantity of, or remove 

5 from the list in Annex 3.25 of the Agreement, 

6 any fabric, yarn, or fiber—

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

8 an unrestricted quantity pursuant to para9 graph (2) or subparagraph (C)(iii) or (D); 

10 or 

11 (II) with respect to which the Presi12 dent has eliminated a restriction under 

13 subparagraph (C)(vi). 

14 (ii) An interested entity may submit a re15 quest under clause (i) at any time beginning 6 

16 months after the date of the action described in 

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

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

19 on which a request under clause (i) is sub20 mitted, the President may proclaim an action 

21 provided for under clause (i) if the President 

22 determines that the fabric, yarn, or fiber that 

23 is the subject of the request is available in com24 mercial quantities in a timely manner in the 

25 CAFTA–DR countries. 
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1 (iv) A proclamation declared under clause 

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

3 that is 6 months after the date on which the 

4 text of the proclamation is published in the 

5 Federal Register. 

6 (F) PROCEDURES.—The President shall 

7 establish procedures—

8 (i) governing the submission of a re9 quest under subparagraphs (C) and (E); 

10 and 

11 (ii) providing an opportunity for inter12 ested entities to submit comments and sup13 porting evidence before the President 

14 makes a determination under subpara15 graph (C) (ii) or (vi) or (E)(iii). 

16 SEC. 204. CUSTOMS USER FEES. 

17 Section 13031(b) of the Consolidated Omnibus Budg18 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

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

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

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

22 originating goods under section 203 of the Domini23 can Republic-Central America-United States Free 

24 Trade Agreement Implementation Act. Any service 

25 for which an exemption from such fee is provided by 
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1 reason of this paragraph may not be funded with 

2 money contained in the Customs User Fee Ac3 count.’’. 

4 SEC. 205. RETROACTIVE APPLICATION FOR CERTAIN LIQ5 UIDATIONS AND RELIQUIDATIONS OF TEX6 TILE OR APPAREL GOODS. 

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

8 the Tariff Act of 1930 (19 U.S.C. 1514) or any other pro9 vision of law, and subject to subsection (c), an entry—

10 (1) of a textile or apparel good—

11 (A) of a CAFTA–DR country that the 

12 United States Trade Representative has des13 ignated as an eligible country under subsection 

14 (b), and 

15 (B) that would have qualified as an origi16 nating good under section 203 if the good had 

17 been entered after the date of entry into force 

18 of the Agreement for that country, 

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

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

21 Agreement with respect to that country, and 

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

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

24 Schedule of the United States to Annex 3.3 of the 

25 Agreement were paid, 
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1 shall be liquidated or reliquidated at the applicable rate 

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

3 States to Annex 3.3 of the Agreement, and the Secretary 

4 of the Treasury shall refund any excess customs duties 

5 paid with respect to such entry. 

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

7 Representative shall determine, in accordance with article 

8 3.20 of the Agreement, which CAFTA–DR countries are 

9 eligible countries for purposes of this section, and shall 

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

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

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

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

14 with the Bureau of Customs and Border Protection, with15 in such period as the Bureau of Customs and Border Pro16 tection shall establish by regulation in consultation with 

17 the Secretary of the Treasury, that contains sufficient in18 formation to enable the Bureau of Customs and Border 

19 Protection—

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

21 (B) to reconstruct the entry if it cannot be lo22 cated; and 

23 (2) to determine that the good satisfies the con24 ditions set out in subsection (a). 
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1 (d) DEFINITION.—As used in this section, the term 

2 ‘‘entry’’ includes a withdrawal from warehouse for con3 sumption. 

4 SEC. 206. DISCLOSURE OF INCORRECT INFORMATION; 

5 FALSE CERTIFICATIONS OF ORIGIN; DENIAL 

6 OF PREFERENTIAL TARIFF TREATMENT. 

7 (a) DISCLOSURE OF INCORRECT INFORMATION.—

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

9 is amended—

10 (1) in subsection (c)—

11 (A) by redesignating paragraph (9) as 

12 paragraph (10); and 

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

14 following new paragraph: 

15 ‘‘(9) PRIOR DISCLOSURE REGARDING CLAIMS

16 UNDER THE DOMINICAN REPUBLIC-CENTRAL AMER17 ICA-UNITED STATES FREE TRADE AGREEMENT.—An 

18 importer shall not be subject to penalties under sub19 section (a) for making an incorrect claim that a 

20 good qualifies as an originating good under section 

21 203 of the Dominican Republic-Central America22 United States Free Trade Agreement Implementa23 tion Act if the importer, in accordance with regula24 tions issued by the Secretary of the Treasury, 
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1 promptly and voluntarily makes a corrected declara2 tion and pays any duties owing.’’; and 

3 (2) by adding at the end the following new sub4 section: 

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

6 DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED

7 STATES FREE TRADE AGREEMENT.—

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

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

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

11 DR certification of origin (as defined in section 

12 508(g)(1)(B) of this Act) that a good exported from 

13 the United States qualifies as an originating good 

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

15 the Dominican Republic-Central America-United 

16 States Free Trade Agreement Implementation Act. 

17 The procedures and penalties of this section that 

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

19 a violation of this subsection. 

20 ‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF

21 INCORRECT INFORMATION.—No penalty shall be im22 posed under this subsection if, promptly after an ex23 porter or producer that issued a CAFTA–DR certifi24 cation of origin has reason to believe that such cer25 tification contains or is based on incorrect informa-
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1 tion, the exporter or producer voluntarily provides 

2 written notice of such incorrect information to every 

3 person to whom the certification was issued. 

4 ‘‘(3) EXCEPTION.—A person may not be consid5 ered to have violated paragraph (1) if—

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

7 time it was provided in a CAFTA–DR certifi8 cation of origin but was later rendered incorrect 

9 due to a change in circumstances; and 

10 ‘‘(B) the person promptly and voluntarily 

11 provides written notice of the change in cir12 cumstances to all persons to whom the person 

13 provided the certification.’’. 

14 (b) DENIAL OF PREFERENTIAL TARIFF TREAT15 MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C. 

16 1514) is amended by adding at the end the following new 

17 subsection: 

18 ‘‘(h) DENIAL OF PREFERENTIAL TARIFF TREAT19 MENT UNDER THE DOMINICAN REPUBLIC-CENTRAL

20 AMERICA-UNITED STATES FREE TRADE AGREEMENT.—

21 If the Bureau of Customs and Border Protection or the 

22 Bureau of Immigration and Customs Enforcement finds 

23 indications of a pattern of conduct by an importer, ex24 porter, or producer of false or unsupported representa25 tions that goods qualify under the rules of origin set out 
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1 in section 203 of the Dominican Republic-Central Amer2 ica-United States Free Trade Agreement Implementation 

3 Act, the Bureau of Customs and Border Protection, in ac4 cordance with regulations issued by the Secretary of the 

5 Treasury, may suspend preferential tariff treatment under 

6 the Dominican Republic-Central America-United States 

7 Free Trade Agreement to entries of identical goods cov8 ered by subsequent representations by that importer, ex9 porter, or producer until the Bureau of Customs and Bor10 der Protection determines that representations of that 

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

12 SEC. 207. RELIQUIDATION OF ENTRIES. 

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

14 1930 (19 U.S.C. 1520(d)) is amended—

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

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

17 Free Trade Agreement Implementation Act’’ and in18 serting ‘‘, section 202 of the United States-Chile 

19 Free Trade Agreement Implementation Act, or sec20 tion 203 of the Dominican Republic-Central Amer21 ica-United States Free Trade Agreement Implemen22 tation Act’’; and 

23 (2) in paragraph (2), by inserting ‘‘or certifi24 cations’’ after ‘‘other certificates’’. 
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1 SEC. 208. RECORDKEEPING REQUIREMENTS. 

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

3 1508) is amended—

4 (1) by redesignating subsection (g) as sub5 section (h); 

6 (2) by inserting after subsection (f) the fol7 lowing new subsection: 

8 ‘‘(g) CERTIFICATIONS OF ORIGIN FOR GOODS EX9 PORTED UNDER THE DOMINICAN REPUBLIC-CENTRAL

10 AMERICA-UNITED STATES FREE TRADE AGREEMENT.—

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

12 ‘‘(A) RECORDS AND SUPPORTING DOCU13 MENTS.—The term ‘records and supporting 

14 documents’ means, with respect to an exported 

15 good under paragraph (2), records and docu16 ments related to the origin of the good, includ17 ing—

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

19 and payment for, the good; 

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

21 and payment for, all materials, including 

22 indirect materials, used in the production 

23 of the good; and 

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

25 the form in which it was exported. 
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1 ‘‘(B) CAFTA–DR CERTIFICATION OF ORI2 GIN.—The term ‘CAFTA–DR certification of 

3 origin’ means the certification established under 

4 article 4.16 of the Dominican Republic-Central 

5 America-United States Free Trade Agreement 

6 that a good qualifies as an originating good 

7 under such Agreement. 

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

9 person who completes and issues a CAFTA–DR cer10 tification of origin for a good exported from the 

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

12 rules and regulations promulgated by the Secretary 

13 of the Treasury, render for examination and inspec14 tion all records and supporting documents related to 

15 the origin of the good (including the certification or 

16 copies thereof). 

17 ‘‘(3) RETENTION PERIOD.—Records and sup18 porting documents shall be kept by the person who 

19 issued a CAFTA–DR certification of origin for at 

20 least 5 years after the date on which the certifi21 cation was issued.’’; and 

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

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

24 (B) by striking ‘‘that subsection’’ and in25 serting ‘‘either such subsection’’. 
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1 SEC. 209. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

2 OR APPAREL GOODS. 

3 (a) ACTION DURING VERIFICATION.—

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

5 Treasury requests the government of a CAFTA–DR 

6 country to conduct a verification pursuant to article 

7 3.24 of the Agreement for purposes of making a de8 termination under paragraph (2), the President may 

9 direct the Secretary to take appropriate action de10 scribed in subsection (b) while the verification is 

11 being conducted. 

12 (2) DETERMINATION.—A determination under 

13 this paragraph is a determination—

14 (A) that an exporter or producer in that 

15 country is complying with applicable customs 

16 laws, regulations, and procedures regarding 

17 trade in textile or apparel goods, or 

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

19 good exported or produced by such exporter or 

20 producer—

21 (i) qualifies as an originating good 

22 under section 203 of this Act, or 

23 (ii) is a good of a CAFTA–DR coun24 try, 

25 is accurate. 
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1 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

2 action under subsection (a)(1) includes—

3 (1) suspension of preferential tariff treatment 

4 under the Agreement with respect to—

5 (A) any textile or apparel good exported or 

6 produced by the person that is the subject of a 

7 verification under subsection (a)(1) regarding 

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

9 the Secretary determines there is insufficient 

10 information to support any claim for pref11 erential tariff treatment that has been made 

12 with respect to any such good; or 

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

14 claim of preferential tariff treatment has been 

15 made that is the subject of a verification under 

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

17 subsection (a)(2)(B), if the Secretary deter18 mines there is insufficient information to sup19 port that claim; 

20 (2) denial of preferential tariff treatment under 

21 the Agreement with respect to—

22 (A) any textile or apparel good exported or 

23 produced by the person that is the subject of a 

24 verification under subsection (a)(1) regarding 

25 compliance described in subsection (a)(2)(A), if 
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1 the Secretary determines that the person has 

2 provided incorrect information to support any 

3 claim for preferential tariff treatment that has 

4 been made with respect to any such good; or 

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

6 claim of preferential tariff treatment has been 

7 made that is the subject of a verification under 

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

9 subsection (a)(2)(B), if the Secretary deter10 mines that a person has provided incorrect in11 formation to support that claim; 

12 (3) detention of any textile or apparel good ex13 ported or produced by the person that is the subject 

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

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

16 claim described in subsection (a)(2)(B), if the Sec17 retary determines there is insufficient information to 

18 determine the country of origin of any such good; 

19 and 

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

21 any textile or apparel good exported or produced by 

22 the person that is the subject of a verification under 

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

24 subsection (a)(2)(A) or a claim described in sub25 section (a)(2)(B), if the Secretary determines that 
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1 the person has provided incorrect information as to 

2 the country of origin of any such good. 

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

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

5 President may direct the Secretary to take appropriate ac6 tion described in subsection (d) until such time as the Sec7 retary receives information sufficient to make the deter8 mination under subsection (a)(2) or until such earlier date 

9 as the President may direct. 

10 (d) APPROPRIATE ACTION DESCRIBED.—Appro11 priate action under subsection (c) includes—

12 (1) denial of preferential tariff treatment under 

13 the Agreement with respect to—

14 (A) any textile or apparel good exported or 

15 produced by the person that is the subject of a 

16 verification under subsection (a)(1) regarding 

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

18 the Secretary determines there is insufficient 

19 information to support, or that the person has 

20 provided incorrect information to support, any 

21 claim for preferential tariff treatment that has 

22 been made with respect to any such good; or 

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

24 claim of preferential tariff treatment has been 

25 made that is the subject of a verification under 
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1 subsection (a)(1) regarding a claim described in 

2 subsection (a)(2)(B), if the Secretary deter3 mines there is insufficient information to sup4 port, or that a person has provided incorrect in5 formation to support, that claim; and 

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

7 any textile or apparel good exported or produced by 

8 the person that is the subject of a verification under 

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

10 subsection (a)(2)(A) or a claim described in sub11 section (a)(2)(B), if the Secretary determines there 

12 is insufficient information to determine, or that the 

13 person has provided incorrect information as to, the 

14 country of origin of any such good. 

15 (e) PUBLICATION OF NAME OF PERSON.—The Sec16 retary may publish the name of any person that the Sec17 retary has determined—

18 (1) is engaged in intentional circumvention of 

19 applicable laws, regulations, or procedures affecting 

20 trade in textile or apparel goods; or 

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

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

23 SEC. 210. REGULATIONS. 

24 The Secretary of the Treasury shall prescribe such 

25 regulations as may be necessary to carry out—
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1 (1) subsections (a) through (n) of section 203; 

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

3 (3) any proclamation issued under section 

4 203(o). 

5 TITLE III—RELIEF FROM 

6 IMPORTS 

7 SEC. 301. DEFINITIONS. 

8 In this title: 

9 (1) CAFTA–DR ARTICLE.—The term 

10 ‘‘CAFTA–DR article’’ means an article that quali11 fies as an originating good under section 203(b). 

12 (2) CAFTA–DR TEXTILE OR APPAREL ARTI13 CLE.—The term ‘‘CAFTA–DR textile or apparel ar14 ticle’’ means a textile or apparel good (as defined in 

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

16 (3) DE MINIMIS SUPPLYING COUNTRY.—

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

18 ‘‘de minimis supplying country’’ means a 

19 CAFTA–DR country whose share of imports of 

20 the relevant CAFTA–DR article into the United 

21 States does not exceed 3 percent of the aggre22 gate volume of imports of the relevant CAFTA–

23 DR article in the most recent 12-month period 

24 for which data are available that precedes the 

25 filing of the petition under section 311(a). 
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1 (B) A CAFTA–DR country shall not be 

2 considered to be a de minimis supplying country 

3 if the aggregate share of imports of the relevant 

4 CAFTA–DR article into the United States of 

5 all CAFTA–DR countries that satisfy the con6 ditions of subparagraph (A) exceeds 9 percent 

7 of the aggregate volume of imports of the rel8 evant CAFTA–DR article during the applicable 

9 12-month period. 

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

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

12 DR article with respect to which a petition has been 

13 filed under section 311(a). 

14 Subtitle A—Relief From Imports 

15 Benefiting From the Agreement 

16 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

17 (a) FILING OF PETITION.—A petition requesting ac18 tion under this subtitle for the purpose of adjusting to 

19 the obligations of the United States under the Agreement 

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

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

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

23 The Commission shall transmit a copy of any petition filed 

24 under this subsection to the United States Trade Rep25 resentative. 
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1 (b) INVESTIGATION AND DETERMINATION.—Upon 

2 the filing of a petition under subsection (a), the Commis3 sion, unless subsection (d) applies, shall promptly initiate 

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

5 reduction or elimination of a duty provided for under the 

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

7 the United States in such increased quantities, in absolute 

8 terms or relative to domestic production, and under such 

9 conditions that imports of the CAFTA–DR article con10 stitute a substantial cause of serious injury or threat 

11 thereof to the domestic industry producing an article that 

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

13 (c) APPLICABLE PROVISIONS.—The following provi14 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

15 2252) apply with respect to any investigation initiated 

16 under subsection (b): 

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

18 (b). 

19 (2) Subsection (c). 

20 (3) Subsection (i). 

21 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

22 investigation may be initiated under this section with re23 spect to any CAFTA–DR article if, after the date that 

24 the Agreement enters into force, import relief has been 
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1 provided with respect to that CAFTA–DR article under 

2 this subtitle. 

3 SEC. 312. COMMISSION ACTION ON PETITION. 

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

5 the date on which an investigation is initiated under sec6 tion 311(b) with respect to a petition, the Commission 

7 shall make the determination required under that section. 

8 At that time, the Commission shall also determine whether 

9 any CAFTA–DR country is a de minimis supplying coun10 try. 

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

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

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

14 1330(d) (1), (2), and (3)) shall be applied with respect 

15 to determinations and findings made under this section 

16 as if such determinations and findings were made under 

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

18 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

19 DETERMINATION AFFIRMATIVE.—If the determination 

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

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

22 may consider a determination of the Commission to be an 

23 affirmative determination as provided for under paragraph 

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

25 1330(d)), the Commission shall find, and recommend to 
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1 the President in the report required under subsection (d), 

2 the amount of import relief that is necessary to remedy 

3 or prevent the injury found by the Commission in the de4 termination and to facilitate the efforts of the domestic 

5 industry to make a positive adjustment to import competi6 tion. The import relief recommended by the Commission 

7 under this subsection shall be limited to the relief de8 scribed in section 313(c). Only those members of the Com9 mission who voted in the affirmative under subsection (a) 

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

11 prevent the injury found by the Commission. Members of 

12 the Commission who did not vote in the affirmative may 

13 submit, in the report required under subsection (d), sepa14 rate views regarding what action, if any, should be taken 

15 to remedy or prevent the injury. 

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

17 date that is 30 days after the date on which a determina18 tion is made under subsection (a) with respect to an inves19 tigation, the Commission shall submit to the President a 

20 report that includes—

21 (1) the determination made under subsection 

22 (a) and an explanation of the basis for the deter23 mination; 

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

25 affirmative, any findings and recommendations for 
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1 import relief made under subsection (c) and an ex2 planation of the basis for each recommendation; and 

3 (3) any dissenting or separate views by mem4 bers of the Commission regarding the determination 

5 and recommendation referred to in paragraphs (1) 

6 and (2). 

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

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

9 promptly make public such report (with the exception of 

10 information which the Commission determines to be con11 fidential) and shall cause a summary thereof to be pub12 lished in the Federal Register. 

13 SEC. 313. PROVISION OF RELIEF. 

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

15 30 days after the date on which the President receives the 

16 report of the Commission in which the Commission’s de17 termination under section 312(a) is affirmative, or which 

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

19 President considers to be affirmative under paragraph (1) 

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

21 1330(d)(1)), the President, subject to subsection (b), shall 

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

23 of such determination to the extent that the President de24 termines necessary to remedy or prevent the injury found 

25 by the Commission and to facilitate the efforts of the do-
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1 mestic industry to make a positive adjustment to import 

2 competition. 

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

4 provide import relief under this section if the President 

5 determines that the provision of the import relief will not 

6 provide greater economic and social benefits than costs. 

7 (c) NATURE OF RELIEF.—

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

9 President is authorized to provide under this section 

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

11 (A) The suspension of any further reduc12 tion provided for under Annex 3.3 of the Agree13 ment in the duty imposed on such article. 

14 (B) An increase in the rate of duty im15 posed on such article to a level that does not 

16 exceed the lesser of—

17 (i) the column 1 general rate of duty 

18 imposed under the HTS on like articles at 

19 the time the import relief is provided; or 

20 (ii) the column 1 general rate of duty 

21 imposed under the HTS on like articles on 

22 the day before the date on which the 

23 Agreement enters into force. 

24 (2) PROGRESSIVE LIBERALIZATION.—If the pe25 riod for which import relief is provided under this 
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1 section is greater than 1 year, the President shall 

2 provide for the progressive liberalization (described 

3 in article 8.2.3 of the Agreement) of such relief at 

4 regular intervals during the period of its application. 

5 (d) PERIOD OF RELIEF.—

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

7 any import relief that the President is authorized to 

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

9 be in effect for more than 4 years. 

10 (2) EXTENSION.—

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

12 any import relief provided under this section is 

13 less than 4 years, the President, after receiving 

14 a determination from the Commission under 

15 subparagraph (B) that is affirmative, or which 

16 the President considers to be affirmative under 

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

18 Act of 1930 (19 U.S.C. 1330(d)(1)), may ex19 tend the effective period of any import relief 

20 provided under this section, subject to the limi21 tation under paragraph (1), if the President de22 termines that—

23 (i) the import relief continues to be 

24 necessary to remedy or prevent serious in-
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1 jury and to facilitate adjustment by the do2 mestic industry to import competition; and 

3 (ii) there is evidence that the industry 

4 is making a positive adjustment to import 

5 competition. 

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

7 petition on behalf of the industry concerned 

8 that is filed with the Commission not earlier 

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

10 than the date which is 6 months, before the 

11 date on which any action taken under sub12 section (a) is to terminate, the Commission 

13 shall conduct an investigation to determine 

14 whether action under this section continues to 

15 be necessary to remedy or prevent serious in16 jury and whether there is evidence that the in17 dustry is making a positive adjustment to im18 port competition. 

19 (ii) The Commission shall publish notice of 

20 the commencement of any proceeding under 

21 this subparagraph in the Federal Register and 

22 shall, within a reasonable time thereafter, hold 

23 a public hearing at which the Commission shall 

24 afford interested parties and consumers an op25 portunity to be present, to present evidence, 
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1 and to respond to the presentations of other 

2 parties and consumers, and otherwise to be 

3 heard. 

4 (iii) The Commission shall transmit to the 

5 President a report on its investigation and de6 termination under this subparagraph not later 

7 than 60 days before the action under subsection 

8 (a) is to terminate, unless the President speci9 fies a different date. 

10 (e) RATE AFTER TERMINATION OF IMPORT RE11 LIEF.—When import relief under this section is termi12 nated with respect to an article—

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

14 termination and on or before December 31 of the 

15 year in which such termination occurs shall be the 

16 rate that, according to the Schedule of the United 

17 States to Annex 3.3 of the Agreement would have 

18 been in effect 1 year after the provision of relief 

19 under subsection (a); and 

20 (2) the rate of duty for that article after De21 cember 31 of the year in which termination occurs 

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

23 (A) the applicable rate of duty for that ar24 ticle set out in the Schedule of the United 

25 States to Annex 3.3 of the Agreement; or 
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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-
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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 
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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-
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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 
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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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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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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). 

Calendar No. 149

109TH CONGRESS 

1ST SESSION S. 1307

A BILL

America-United States Free Trade Agreement. 

To implement the Dominican Republic-Central 

JUNE 29, 2005

Reported without amendment