I 

110TH CONGRESS 

2D SESSION H. R. 5724 

To implement the United States-Colombia Trade Promotion Agreement. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 8, 2008 

Mr. HOYER (for himself and Mr. BOEHNER) (both by request): introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To implement the United States-Colombia Trade Promotion 

Agreement. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘United States-Colombia Trade Promotion Agreement 

6 Implementation Act’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING 

TO, THE AGREEMENT 


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

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

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

regulations. 

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

Sec. 105. Administration of dispute settlement proceedings. 

Sec. 106. Arbitration of claims. 

Sec. 107. Effective dates; effect of termination. 

TITLE II—CUSTOMS PROVISIONS 

Sec. 201. Tariff modifications. 

Sec. 202. Additional duties on certain agricultural goods. 

Sec. 203. Rules of origin. 

Sec. 204. Customs user fees. 

Sec. 205. Disclosure of incorrect information; false certifications of origin; denial of preferential tariff treatment. 

Sec. 206. Reliquidation of entries. 

Sec. 207. Recordkeeping requirements. 

Sec. 208. Enforcement relating to trade in textile or apparel goods. 

Sec. 209. Regulations. 

TITLE III—RELIEF FROM IMPORTS 

Sec. 301. Definitions. 

Subtitle A—Relief From Imports Benefiting From the Agreement 

Sec. 311. Commencing of action for relief. 

Sec. 312. Commission action on petition. 

Sec. 313. Provision of relief. 

Sec. 314. Termination of relief authority. 

Sec. 315. Compensation authority. 

Sec. 316. Confidential business information. 

Subtitle B—Textile and Apparel Safeguard Measures 

Sec. 321. Commencement of action for relief. 

Sec. 322. Determination and provision of relief. 

Sec. 323. Period of relief. 

Sec. 324. Articles exempt from relief. 

Sec. 325. Rate after termination of import relief. 

Sec. 326. Termination of relief authority. 

Sec. 327. Compensation authority. 

Sec. 328. Confidential business information. 

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

Sec. 331. Findings and action on goods of Colombia. 

TITLE IV—PROCUREMENT 

Sec. 401. Eligible products. 

TITLE V—OFFSETS 


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Sec. 501. Customs user fees. 

Sec. 502. Time for payment of corporate estimated taxes. 

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 and Colombia 

5 entered into under the authority of section 2103(b) 

6 of the Bipartisan Trade Promotion Authority Act of 

7 2002 (19 U.S.C. 3803(b)); 

8 (2) to strengthen and develop economic rela9 tions between the United States and Colombia for 

10 their mutual benefit; 

11 (3) to establish free trade between the United 

12 States and Colombia through the reduction and 

13 elimination of barriers to trade in goods and services 

14 and to investment; and 

15 (4) to lay the foundation for further coopera16 tion to expand and enhance the benefits of the 

17 Agreement. 

18 SEC. 3. DEFINITIONS. 

19 In this Act: 

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

21 means the United States-Colombia Trade Promotion 

22 Agreement approved by Congress under section 

23 101(a)(1). 


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

2 means the United States International Trade Com3 mission. 

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

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

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

8 Annex to the Agreement on Textiles and Clothing 

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

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

11 other than a good listed in Annex 3–C of the Agree12 ment. 

13 TITLE I—APPROVAL OF, AND 

14 GENERAL PROVISIONS RE15 LATING TO, THE AGREEMENT 

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

17 AGREEMENT. 

18 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

19 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

20 the Bipartisan Trade Promotion Authority Act of 2002 

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

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

23 (1) the United States-Colombia Trade Pro24 motion Agreement entered into on November 22, 

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1 ed on June 28, 2007, by the United States and Co2 lombia, and submitted to Congress on April 8, 2008; 

3 and 

4 (2) the statement of administrative action pro5 posed to implement the Agreement that was sub6 mitted to Congress on April 8, 2008. 

7 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

8 AGREEMENT.—At such time as the President determines 

9 that Colombia has taken measures necessary to comply 

10 with those provisions of the Agreement that are to take 

11 effect on the date on which the Agreement enters into 

12 force, the President is authorized to exchange notes with 

13 the Government of Colombia providing for the entry into 

14 force, on or after January 1, 2009, of the Agreement with 

15 respect to the United States. 

16 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

17 STATES AND STATE LAW. 

18 (a) RELATIONSHIP OF AGREEMENT TO UNITED

19 STATES LAW.— 

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

24 United States shall have effect. 


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

2 be construed— 

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

4 United States; or 

5 (B) to limit any authority conferred under 

6 any law of the United States, 

7 unless specifically provided for in this Act. 

8 (b) RELATIONSHIP OF AGREEMENT TO STATE

9 LAW.— 

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

11 application thereof, may be declared invalid as to 

12 any person or circumstance on the ground that the 

13 provision or application is inconsistent with the 

14 Agreement, except in an action brought by the 

15 United States for the purpose of declaring such law 

16 or application invalid. 

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

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

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

20 State; and 

21 (B) any State law regulating or taxing the 

22 business of insurance. 

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

25 States— 


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

2 under the Agreement or by virtue of congressional 

3 approval thereof; or 

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

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

6 department, agency, or other instrumentality of the 

7 United States, any State, or any political subdivision 

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

10 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 

11 ENTRY INTO FORCE AND INITIAL REGULA12 TIONS. 

13 (a) IMPLEMENTING ACTIONS.— 

14 (1) PROCLAMATION AUTHORITY.—After the 

15 date of the enactment of this Act— 

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

18 (B) other appropriate officers of the 

19 United States Government may issue such reg20 ulations, 

21 as may be necessary to ensure that any provision of 

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

23 effect on the date on which the Agreement enters 

24 into force is appropriately implemented on such 

25 date, but no such proclamation or regulation may 


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1 have an effective date earlier than the date on which 

2 the Agreement enters into force. 

3 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

4 ACTIONS.—Any action proclaimed by the President 

5 under the authority of this Act that is not subject 

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

8 after the date on which the text of the proclamation 

9 is published in the Federal Register. 

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

11 day restriction contained in paragraph (2) on the 

12 taking effect of proclaimed actions is waived to the 

13 extent that the application of such restriction would 

14 prevent the taking effect on the date the Agreement 

15 enters into force of any action proclaimed under this 

16 section. 

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

19 or authorized under this Act or proposed in the statement 

20 of administrative action submitted under section 

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

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

24 of any implementing action that takes effect on a date 

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


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

2 maximum extent feasible, be issued within 1 year after 

3 such effective date. 

4 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 

5 AND EFFECTIVE DATE OF, PROCLAIMED AC6 TIONS. 

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

9 subject to the consultation and layover requirements of 

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

11 (1) the President has obtained advice regarding 

12 the proposed action from— 

13 (A) the appropriate advisory committees 

14 established under section 135 of the Trade Act 

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

16 (B) the Commission; 

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

19 on Ways and Means of the House of Representatives 

20 a report that sets forth— 

21 (A) the action proposed to be proclaimed 

22 and the reasons therefor; and 

23 (B) the advice obtained under paragraph 

24 (1); 


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

2 the first day on which the requirements set forth in 

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

4 and 

5 (4) the President has consulted with the com6 mittees referred to in paragraph (2) regarding the 

7 proposed action during the period referred to in 

8 paragraph (3). 

9 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO10 CEEDINGS. 

11 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.— 

12 The President is authorized to establish or designate with13 in the Department of Commerce an office that shall be 

14 responsible for providing administrative assistance to pan15 els established under chapter 21 of the Agreement. The 

16 office shall not be considered to be an agency for purposes 

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

18 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated for each fiscal year after 

20 fiscal year 2008 to the Department of Commerce such 

21 sums as may be necessary for the establishment and oper22 ations of the office established or designated under sub23 section (a) and for the payment of the United States share 

24 of the expenses of panels established under chapter 21 of 

25 the Agreement. 


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1 SEC. 106. ARBITRATION OF CLAIMS. 

2 The United States is authorized to resolve any claim 

3 against the United States covered by article 

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

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

7 Agreement. 

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

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

11 Act take effect on the date on which the Agreement enters 

12 into force. 

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

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

15 (c) TERMINATION OF THE AGREEMENT.—On the 

16 date on which the Agreement terminates, this Act (other 

17 than this subsection) and the amendments made by this 

18 Act shall cease to have effect. 

19 TITLE II—CUSTOMS PROVISIONS 

20 SEC. 201. TARIFF MODIFICATIONS. 

21 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

22 AGREEMENT.— 

23 (1) PROCLAMATION AUTHORITY.—The Presi24 dent may proclaim— 

25 (A) such modifications or continuation of 

26 any duty, 


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1 (B) such continuation of duty-free or ex2 cise treatment, or 

3 (C) such additional duties, 

4 as the President determines to be necessary or ap5 propriate to carry out or apply articles 2.3, 2.5, 2.6, 

6 3.3.13, and Annex 2.3 of the Agreement. 

7 (2) EFFECT ON GSP STATUS.—Notwithstanding 

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

9 U.S.C. 2462(a)(1)), the President shall, on the date 

10 on which the Agreement enters into force, terminate 

11 the designation of Colombia as a beneficiary devel12 oping country for purposes of title V of the Trade 

13 Act of 1974 (19 U.S.C. 2461 et seq.). 

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

15 consultation and layover provisions of section 104, the 

16 President may proclaim— 

17 (1) such modifications or continuation of any 

18 duty, 

19 (2) such modifications as the United States 

20 may agree to with Colombia regarding the staging of 

21 any duty treatment set forth in Annex 2.3 of the 

22 Agreement, 

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

24 treatment, or 

25 (4) such additional duties, 


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1 as the President determines to be necessary or appropriate 

2 to maintain the general level of reciprocal and mutually 

3 advantageous concessions with respect to Colombia pro4 vided for by the Agreement. 

5 (c) CONVERSION TO AD VALOREM RATES.—For pur6 poses of subsections (a) and (b), with respect to any good 

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

8 States to Annex 2.3 of the Agreement is a specific or com9 pound rate of duty, the President may substitute for the 

10 base rate an ad valorem rate that the President deter11 mines to be equivalent to the base rate. 

12 (d) TARIFF RATE QUOTAS.—In implementing the 

13 tariff rate quotas set forth in Appendix I to the Schedule 

14 of the United States to Annex 2.3 of the Agreement, the 

15 President shall take such action as may be necessary to 

16 ensure that imports of agricultural goods do not disrupt 

17 the orderly marketing of commodities in the United 

18 States. 

19 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL20 TURAL GOODS. 

21 (a) DEFINITIONS.—In this section: 

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

23 The term ‘‘applicable NTR (MFN) rate of duty’’ 

24 means, with respect to a safeguard good, a rate of 

25 duty equal to the lowest of— 


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1 (A) the base rate in the Schedule of the 

2 United States to Annex 2.3 of the Agreement; 

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

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

5 Agreement enters into force, apply to a good 

6 classifiable in the same 8-digit subheading of 

7 the HTS as the safeguard good; or 

8 (C) the column 1 general rate of duty that 

9 would, at the time the additional duty is im10 posed under subsection (b), apply to a good 

11 classifiable in the same 8-digit subheading of 

12 the HTS as the safeguard good. 

13 (2) SCHEDULE RATE OF DUTY.—The term 

14 ‘‘schedule rate of duty’’ means, with respect to a 

15 safeguard good, the rate of duty for that good that 

16 is set forth in the Schedule of the United States to 

17 Annex 2.3 of the Agreement. 

18 (3) SAFEGUARD GOOD.—The term ‘‘safeguard 

19 good’’ means a good— 

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

21 United States to Annex 2.18 of the Agreement; 

22 (B) that qualifies as an originating good 

23 under section 203, except that operations per24 formed in or material obtained from the United 

25 States shall be considered as if the operations 


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1 were performed in, and the material was ob2 tained from, a country that is not a party to 

3 the Agreement; and 

4 (C) for which a claim for preferential tariff 

5 treatment under the Agreement has been made. 

6 (b) ADDITIONAL DUTIES ON SAFEGUARD GOODS.— 

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

9 the Secretary of the Treasury shall assess a duty, in 

10 the amount determined under paragraph (2), on a 

11 safeguard good imported into the United States in 

12 a calendar year if the Secretary determines that, 

13 prior to such importation, the total volume of that 

14 safeguard good that is imported into the United 

15 States in that calendar year exceeds 140 percent of 

16 the volume that is provided for that safeguard good 

17 in the corresponding year in the applicable table 

18 contained in Appendix I of the General Notes to the 

19 Schedule of the United States to Annex 2.3 of the 

20 Agreement. For purposes of this subsection, year 1 

21 in that table corresponds to the calendar year in 

22 which the Agreement enters into force. 

23 (2) CALCULATION OF ADDITIONAL DUTY.—The 

24 additional duty on a safeguard good under this sub25 section shall be— 


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1 (A) in years 1 through 4, an amount equal 

2 to 100 percent of the excess of the applicable 

3 NTR (MFN) rate of duty over the schedule 

4 rate of duty; 

5 (B) in years 5 through 7, an amount equal 

6 to 75 percent of the excess of the applicable 

7 NTR (MFN) rate of duty over the schedule 

8 rate of duty; and 

9 (C) in years 8 through 9, an amount equal 

10 to 50 percent of the excess of the applicable 

11 NTR (MFN) rate of duty over the schedule 

12 rate of duty. 

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

14 Secretary of the Treasury first assesses an addi15 tional duty in a calendar year on a good under this 

16 subsection, the Secretary shall notify the Govern17 ment of Colombia in writing of such action and shall 

18 provide to that Government data supporting the as19 sessment of the additional duty. 

20 (c) EXCEPTIONS.—No additional duty shall be as21 sessed on a good under subsection (b) if, at the time of 

22 entry, the good is subject to import relief under— 

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

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

25 1974 (19 U.S.C. 2251 et seq.). 


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1 (d) TERMINATION.—The assessment of an additional 

2 duty on a good under subsection (b) shall cease to apply 

3 to that good on the date on which duty-free treatment 

4 must be provided to that good under the Schedule of the 

5 United States to Annex 2.3 of the Agreement. 

6 SEC. 203. RULES OF ORIGIN. 

7 (a) APPLICATION AND INTERPRETATION.—In this 

8 section: 

9 (1) TARIFF CLASSIFICATION.—The basis for 

10 any tariff classification is the HTS. 

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

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

13 subheading, such reference shall be a reference to a 

14 chapter, heading, or subheading of the HTS. 

15 (3) COST OR VALUE.—Any cost or value re16 ferred to in this section shall be recorded and main17 tained in accordance with the generally accepted ac18 counting principles applicable in the territory of the 

19 country in which the good is produced (whether Co20 lombia or the United States). 

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

22 and for purposes of implementing the preferential tariff 

23 treatment provided for under the Agreement, except as 

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

25 good if— 


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1 (1) the good is a good wholly obtained or pro2 duced entirely in the territory of Colombia, the 

3 United States, or both; 

4 (2) the good— 

5 (A) is produced entirely in the territory of 

6 Colombia, the United States, or both, and— 

7 (i) each of the nonoriginating mate8 rials used in the production of the good 

9 undergoes an applicable change in tariff 

10 classification specified in Annex 3–A or 

11 Annex 4.1 of the Agreement; or 

12 (ii) the good otherwise satisfies any 

13 applicable regional value-content or other 

14 requirements specified in Annex 3–A or 

15 Annex 4.1 of the Agreement; and 

16 (B) satisfies all other applicable require17 ments of this section; or 

18 (3) the good is produced entirely in the terri19 tory of Colombia, the United States, or both, exclu20 sively from materials described in paragraph (1) or 

21 (2). 

22 (c) REGIONAL VALUE-CONTENT.— 

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

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

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


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

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

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

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

5 paragraph (3). 

6 (2) BUILD-DOWN METHOD.— 

7 (A) IN GENERAL.—The regional value-con8 tent of a good may be calculated on the basis 

9 of the following build-down method: 

AV–VNM 

RVC = ———— × 100 

AV 

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

11 (i) AV.—The term ‘‘AV’’ means the 

12 adjusted value of the good. 

13 (ii) RVC.—The term ‘‘RVC’’ means 

14 the regional value-content of the good, ex15 pressed as a percentage. 

16 (iii) VNM.—The term ‘‘VNM’’ means 

17 the value of nonoriginating materials that 

18 are acquired and used by the producer in 

19 the production of the good, but does not 

20 include the value of a material that is self21 produced. 

22 (3) BUILD-UP METHOD.— 


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1 (A) IN GENERAL.—The regional value-con2 tent of a good may be calculated on the basis 

3 of the following build-up method: 

VOM 

RVC = ———— × 100 

AV 

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

5 (i) AV.—The term ‘‘AV’’ means the 

6 adjusted value of the good. 

7 (ii) RVC.—The term ‘‘RVC’’ means 

8 the regional value-content of the good, ex9 pressed as a percentage. 

10 (iii) VOM.—The term ‘‘VOM’’ means 

11 the value of originating materials that are 

12 acquired or self-produced, and used by the 

13 producer in the production of the good. 

14 (4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE

15 GOODS.— 

16 (A) IN GENERAL.—For purposes of sub17 section (b)(2), the regional value-content of an 

18 automotive good referred to in Annex 4.1 of the 

19 Agreement shall be calculated by the importer, 

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

21 of the following net cost method: 

NC–VNM 

RVC = ———— × 100 

NC 


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

2 (i) AUTOMOTIVE GOOD.—The term 

3 ‘‘automotive good’’ means a good provided 

4 for in any of subheadings 8407.31 through 

5 8407.34, subheading 8408.20, heading 

6 8409, or any of headings 8701 through 

7 8708. 

8 (ii) RVC.—The term ‘‘RVC’’ means 

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

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

12 net cost of the automotive good. 

13 (iv) VNM.—The term ‘‘VNM’’ means 

14 the value of nonoriginating materials that 

15 are acquired and used by the producer in 

16 the production of the automotive good, but 

17 does not include the value of a material 

18 that is self-produced. 

19 (C) MOTOR VEHICLES.— 

20 (i) BASIS OF CALCULATION.—For 

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

23 automotive good that is a motor vehicle 

24 provided for in any of headings 8701 

25 through 8705, an importer, exporter, or 


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1 producer may average the amounts cal2 culated under the formula contained in 

3 subparagraph (A), over the producer’s fis4 cal year— 

5 (I) with respect to all motor vehi6 cles in any one of the categories de7 scribed in clause (ii); or 

8 (II) with respect to all motor ve9 hicles in any such category that are 

10 exported to the territory of the United 

11 States or Colombia. 

12 (ii) CATEGORIES.—A category is de13 scribed in this clause if it— 

14 (I) is the same model line of 

15 motor vehicles, is in the same class of 

16 motor vehicles, and is produced in the 

17 same plant in the territory of Colom18 bia or the United States, as the good 

19 described in clause (i) for which re20 gional value-content is being cal21 culated; 

22 (II) is the same class of motor 

23 vehicles, and is produced in the same 

24 plant in the territory of Colombia or 

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1 scribed in clause (i) for which regional 

2 value-content is being calculated; or 

3 (III) is the same model line of 

4 motor vehicles produced in the terri5 tory of Colombia or the United States 

6 as the good described in clause (i) for 

7 which regional value-content is being 

8 calculated. 

9 (D) OTHER AUTOMOTIVE GOODS.—For 

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

12 materials provided for in any of subheadings 

13 8407.31 through 8407.34, in subheading 

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

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

16 importer, exporter, or producer may— 

17 (i) average the amounts calculated 

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

20 (I) the fiscal year of the motor 

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

23 (II) any quarter or month, or 

24 (III) the fiscal year of the pro25 ducer of such goods, 


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

3 basis for the calculation; 

4 (ii) determine the average referred to 

5 in clause (i) separately for such goods sold 

6 to 1 or more motor vehicle producers; or 

7 (iii) make a separate determination 

8 under clause (i) or (ii) for such goods that 

9 are exported to the territory of Colombia 

10 or the United States. 

11 (E) CALCULATING NET COST.—The im12 porter, exporter, or producer of an automotive 

13 good shall, consistent with the provisions re14 garding allocation of costs provided for in gen15 erally accepted accounting principles, determine 

16 the net cost of the automotive good under sub17 paragraph (B) by— 

18 (i) calculating the total cost incurred 

19 with respect to all goods produced by the 

20 producer of the automotive good, sub21 tracting any sales promotion, marketing, 

22 and after-sales service costs, royalties, 

23 shipping and packing costs, and nonallow24 able interest costs that are included in the 

25 total cost of all such goods, and then reaVerDate Aug 31 2005 04:29 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H5724.IH H5724

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1 sonably allocating the resulting net cost of 

2 those goods to the automotive good; 

3 (ii) calculating the total cost incurred 

4 with respect to all goods produced by that 

5 producer, reasonably allocating the total 

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

8 and after-sales service costs, royalties, 

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

11 portion of the total cost allocated to the 

12 automotive good; or 

13 (iii) reasonably allocating each cost 

14 that forms part of the total cost incurred 

15 with respect to the automotive good so that 

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

18 after-sales service costs, royalties, shipping 

19 and packing costs, or nonallowable interest 

20 costs. 

21 (d) VALUE OF MATERIALS.— 

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

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


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

2 material is— 

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

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

7 the territory in which the good is produced, the 

8 value, determined in accordance with Articles 1 

9 through 8, Article 15, and the corresponding in10 terpretive notes, of the Agreement on Imple11 mentation of Article VII of the General Agree12 ment on Tariffs and Trade 1994 referred to in 

13 section 101(d)(8) of the Uruguay Round Agree14 ments Act (19 U.S.C. 3511(d)(8)), as set forth 

15 in regulations promulgated by the Secretary of 

16 the Treasury providing for the application of 

17 such Articles in the absence of an importation 

18 by the producer; or 

19 (C) in the case of a material that is self20 produced, the sum of— 

21 (i) all expenses incurred in the pro22 duction of the material, including general 

23 expenses; and 


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1 (ii) an amount for profit equivalent to 

2 the profit added in the normal course of 

3 trade. 

4 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

5 MATERIALS.— 

6 (A) ORIGINATING MATERIAL.—The fol7 lowing expenses, if not included in the value of 

8 an originating material calculated under para9 graph (1), may be added to the value of the 

10 originating material: 

11 (i) The costs of freight, insurance, 

12 packing, and all other costs incurred in 

13 transporting the material within or be14 tween the territory of Colombia, the United 

15 States, or both, to the location of the pro16 ducer. 

17 (ii) Duties, taxes, and customs broker18 age fees on the material paid in the terri19 tory of Colombia, the United States, or 

20 both, other than duties or taxes that are 

21 waived, refunded, refundable, or otherwise 

22 recoverable, including credit against duty 

23 or tax paid or payable. 

24 (iii) The cost of waste and spoilage re25 sulting from the use of the material in the 


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1 production of the good, less the value of 

2 renewable scrap or byproducts. 

3 (B) NONORIGINATING MATERIAL.—The 

4 following expenses, if included in the value of a 

5 nonoriginating material calculated under para6 graph (1), may be deducted from the value of 

7 the nonoriginating material: 

8 (i) The costs of freight, insurance, 

9 packing, and all other costs incurred in 

10 transporting the material within or be11 tween the territory of Colombia, the United 

12 States, or both, to the location of the pro13 ducer. 

14 (ii) Duties, taxes, and customs broker15 age fees on the material paid in the terri16 tory of Colombia, the United States, or 

17 both, other than duties or taxes that are 

18 waived, refunded, refundable, or otherwise 

19 recoverable, including credit against duty 

20 or tax paid or payable. 

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

23 production of the good, less the value of 

24 renewable scrap or byproducts. 


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1 (iv) The cost of originating materials 

2 used in the production of the nonorigi3 nating material in the territory of Colom4 bia, the United States, or both. 

5 (e) ACCUMULATION.— 

6 (1) ORIGINATING MATERIALS USED IN PRODUC7 TION OF GOODS OF ANOTHER COUNTRY.—Origi8 nating materials from the territory of Colombia or 

9 the United States that are used in the production of 

10 a good in the territory of the other country shall be 

11 considered to originate in the territory of such other 

12 country. 

13 (2) MULTIPLE PRODUCERS.—A good that is 

14 produced in the territory of Colombia, the United 

15 States, or both, by 1 or more producers, is an origi16 nating good if the good satisfies the requirements of 

17 subsection (b) and all other applicable requirements 

18 of this section. 

19 (f) DE MINIMIS AMOUNTS OF NONORIGINATING MA20 TERIALS.— 

21 (1) IN GENERAL.—Except as provided in para22 graphs (2) and (3), a good that does not undergo a 

23 change in tariff classification pursuant to Annex 4.1 

24 of the Agreement is an originating good if— 


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1 (A)(i) the value of all nonoriginating mate2 rials that— 

3 (I) are used in the production of the 

4 good, and 

5 (II) do not undergo the applicable 

6 change in tariff classification (set forth in 

7 Annex 4.1 of the Agreement), 

8 does not exceed 10 percent of the adjusted 

9 value of the good; 

10 (ii) the good meets all other applicable re11 quirements of this section; and 

12 (iii) the value of such nonoriginating mate13 rials is included in the value of nonoriginating 

14 materials for any applicable regional value-con15 tent requirement for the good; or 

16 (B) the good meets the requirements set 

17 forth in paragraph 2 of Annex 4.6 of the Agree18 ment. 

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

20 apply to the following: 

21 (A) A nonoriginating material provided for 

22 in chapter 4, or a nonoriginating dairy prepara23 tion containing over 10 percent by weight of 

24 milk solids provided for in subheading 1901.90 


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

2 good provided for in chapter 4. 

3 (B) A nonoriginating material provided for 

4 in chapter 4, or a nonoriginating dairy prepara5 tion containing over 10 percent by weight of 

6 milk solids provided for in subheading 1901.90, 

7 that is used in the production of any of the fol8 lowing goods: 

9 (i) Infant preparations containing 

10 over 10 percent by weight of milk solids 

11 provided for in subheading 1901.10. 

12 (ii) Mixes and doughs, containing over 

13 25 percent by weight of butterfat, not put 

14 up for retail sale, provided for in sub15 heading 1901.20. 

16 (iii) Dairy preparations containing 

17 over 10 percent by weight of milk solids 

18 provided for in subheading 1901.90 or 

19 2106.90. 

20 (iv) Goods provided for in heading 

21 2105. 

22 (v) Beverages containing milk pro23 vided for in subheading 2202.90. 


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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 chapter 15 that is used in the production of 

19 a good provided for in any of headings 1501 

20 through 1508, or any of headings 1511 through 

21 1515. 

22 (F) A nonoriginating material provided for 

23 in heading 1701 that is used in the production 

24 of a good provided for in any of headings 1701 

25 through 1703. 


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1 (G) A nonoriginating material provided for 

2 in chapter 17 that is used in the production of 

3 a good provided for in subheading 1806.10. 

4 (H) Except as provided in subparagraphs 

5 (A) through (G) and Annex 4.1 of the Agree6 ment, a nonoriginating material used in the 

7 production of a good provided for in any of 

8 chapters 1 through 24, unless the nonorigi9 nating material is provided for in a different 

10 subheading than the good for which origin is 

11 being determined under this section. 

12 (I) A nonoriginating material that is a tex13 tile or apparel good. 

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 

22 forth in Annex 3–A of the Agreement, shall be 

23 considered to be an originating good if— 

24 (i) the total weight of all such fibers 

25 or yarns in that component is not more 


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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 Colombia, the United States, or 

15 both. 

16 (C) YARN, FABRIC, OR FIBER.—For pur17 poses of this paragraph, in the case of a good 

18 that is a yarn, fabric, or fiber, the term ‘‘com19 ponent of the good that determines the tariff 

20 classification of the good’’ means all of the fi21 bers in the good. 

22 (g) FUNGIBLE GOODS AND MATERIALS.— 

23 (1) IN GENERAL.— 

24 (A) CLAIM FOR PREFERENTIAL TARIFF

25 TREATMENT.—A person claiming that a funVerDate Aug 31 2005 04:29 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H5724.IH H5724

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1 gible good or fungible material is an originating 

2 good may base the claim either on the physical 

3 segregation of the fungible good or fungible ma4 terial or by using an inventory management 

5 method with respect to the fungible good or 

6 fungible material. 

7 (B) INVENTORY MANAGEMENT METHOD.— 

8 In this subsection, the term ‘‘inventory manage9 ment method’’ means— 

10 (i) averaging; 

11 (ii) ‘‘last-in, first-out’’; 

12 (iii) ‘‘first-in, first-out’’; or 

13 (iv) any other method— 

14 (I) recognized in the generally 

15 accepted accounting principles of the 

16 country in which the production is 

17 performed (whether Colombia or the 

18 United States); or 

19 (II) otherwise accepted by that 

20 country. 

21 (2) ELECTION OF INVENTORY METHOD.—A 

22 person selecting an inventory management method 

23 under paragraph (1) for a particular fungible good 

24 or fungible material shall continue to use that methVerDate Aug 31 2005 04:29 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H5724.IH H5724

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1 od for that fungible good or fungible material 

2 throughout the fiscal year of such person. 

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

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

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

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

7 accessories, spare parts, or tools shall— 

8 (A) be treated as originating goods if the 

9 good is an originating good; and 

10 (B) be disregarded in determining whether 

11 all the nonoriginating materials used in the pro12 duction of the good undergo the applicable 

13 change in tariff classification set forth in Annex 

14 4.1 of the Agreement. 

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

16 only if— 

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

18 are classified with and not invoiced separately 

19 from the good, regardless of whether such ac20 cessories, spare parts, or tools are specified or 

21 are separately identified in the invoice for the 

22 good; and 

23 (B) the quantities and value of the acces24 sories, spare parts, or tools are customary for 

25 the good. 


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

2 subject to a regional value-content requirement, the 

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

4 be taken into account as originating or nonorigi5 nating materials, as the case may be, in calculating 

6 the regional value-content of the good. 

7 (i) PACKAGING MATERIALS AND CONTAINERS FOR

8 RETAIL SALE.—Packaging materials and containers in 

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

10 the good, shall be disregarded in determining whether all 

11 the nonoriginating materials used in the production of the 

12 good undergo the applicable change in tariff classification 

13 set forth in Annex 3–A or Annex 4.1 of the Agreement, 

14 and, if the good is subject to a regional value-content re15 quirement, the value of such packaging materials and con16 tainers shall be taken into account as originating or non17 originating materials, as the case may be, in calculating 

18 the regional value-content of the good. 

19 (j) PACKING MATERIALS AND CONTAINERS FOR

20 SHIPMENT.—Packing materials and containers for ship21 ment shall be disregarded in determining whether a good 

22 is an originating good. 

23 (k) INDIRECT MATERIALS.—An indirect material 

24 shall be treated as an originating material without regard 

25 to where it is produced. 


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

2 undergone production necessary to qualify as an origi3 nating good under subsection (b) shall not be considered 

4 to be an originating good if, subsequent to that produc5 tion, the good— 

6 (1) undergoes further production or any other 

7 operation outside the territory of Colombia or the 

8 United States, other than unloading, reloading, or 

9 any other operation necessary to preserve the good 

10 in good condition or to transport the good to the ter11 ritory of Colombia or the United States; or 

12 (2) does not remain under the control of cus13 toms authorities in the territory of a country other 

14 than Colombia or the United States. 

15 (m) GOODS CLASSIFIABLE AS GOODS PUT UP IN

16 SETS.—Notwithstanding the rules set forth in Annex 3– 

17 A and Annex 4.1 of the Agreement, goods classifiable as 

18 goods put up in sets for retail sale as provided for in Gen19 eral Rule of Interpretation 3 of the HTS shall not be con20 sidered to be originating goods unless— 

21 (1) each of the goods in the set is an origi22 nating good; or 

23 (2) the total value of the nonoriginating goods 

24 in the set does not exceed— 


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

2 10 percent of the adjusted value of the set; or 

3 (B) in the case of a good, other than a tex4 tile or apparel good, 15 percent of the adjusted 

5 value of the set. 

6 (n) DEFINITIONS.—In this section: 

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

8 value’’ means the value determined in accordance 

9 with articles 1 through 8, article 15, and the cor10 responding interpretive notes, of the Agreement on 

11 Implementation of Article VII of the General Agree12 ment on Tariffs and Trade 1994 referred to in sec13 tion 101(d)(8) of the Uruguay Round Agreements 

14 Act (19 U.S.C. 3511(d)(8)), adjusted, if necessary, 

15 to exclude any costs, charges, or expenses incurred 

16 for transportation, insurance, and related services 

17 incident to the international shipment of the mer18 chandise from the country of exportation to the 

19 place of importation. 

20 (2) CLASS OF MOTOR VEHICLES.—The term 

21 ‘‘class of motor vehicles’’ means any one of the fol22 lowing categories of motor vehicles: 

23 (A) Motor vehicles provided for in sub24 heading 8701.20, 8704.10, 8704.22, 8704.23, 

25 8704.32, or 8704.90, or heading 8705 or 8706, 


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1 or motor vehicles for the transport of 16 or 

2 more persons provided for in subheading 

3 8702.10 or 8702.90. 

4 (B) Motor vehicles provided for in sub5 heading 8701.10 or any of subheadings 

6 8701.30 through 8701.90. 

7 (C) Motor vehicles for the transport of 15 

8 or fewer persons provided for in subheading 

9 8702.10 or 8702.90, or motor vehicles provided 

10 for in subheading 8704.21 or 8704.31. 

11 (D) Motor vehicles provided for in any of 

12 subheadings 8703.21 through 8703.90. 

13 (3) FUNGIBLE GOOD OR FUNGIBLE MATE14 RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate15 rial’’ means a good or material, as the case may be, 

16 that is interchangeable with another good or mate17 rial for commercial purposes and the properties of 

18 which are essentially identical to such other good or 

19 material. 

20 (4) GENERALLY ACCEPTED ACCOUNTING PRIN21 CIPLES.—The term ‘‘generally accepted accounting 

22 principles’’ means the recognized consensus or sub23 stantial authoritative support in the territory of Co24 lombia or the United States, as the case may be, 

25 with respect to the recording of revenues, expenses, 


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1 costs, assets, and liabilities, the disclosure of infor2 mation, and the preparation of financial statements. 

3 The principles may encompass broad guidelines of 

4 general application as well as detailed standards, 

5 practices, and procedures. 

6 (5) GOOD WHOLLY OBTAINED OR PRODUCED

7 ENTIRELY IN THE TERRITORY OF COLOMBIA, THE

8 UNITED STATES, OR BOTH.—The term ‘‘good wholly 

9 obtained or produced entirely in the territory of Co10 lombia, the United States, or both’’ means any of 

11 the following: 

12 (A) Plants and plant products harvested or 

13 gathered in the territory of Colombia, the 

14 United States, or both. 

15 (B) Live animals born and raised in the 

16 territory of Colombia, the United States, or 

17 both. 

18 (C) Goods obtained in the territory of Co19 lombia, the United States, or both from live 

20 animals. 

21 (D) Goods obtained from hunting, trap22 ping, fishing, or aquaculture conducted in the 

23 territory of Colombia, the United States, or 

24 both. 


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1 (E) Minerals and other natural resources 

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

3 that are extracted or taken from the territory 

4 of Colombia, the United States, or both. 

5 (F) Fish, shellfish, and other marine life 

6 taken from the sea, seabed, or subsoil outside 

7 the territory of Colombia or the United States 

8 by— 

9 (i) a vessel that is registered or re10 corded with Colombia and flying the flag of 

11 Colombia; or 

12 (ii) a vessel that is documented under 

13 the laws of the United States. 

14 (G) Goods produced on board a factory 

15 ship from goods referred to in subparagraph 

16 (F), if such factory ship— 

17 (i) is registered or recorded with Co18 lombia and flies the flag of Colombia; or 

19 (ii) is a vessel that is documented 

20 under the laws of the United States. 

21 (H)(i) Goods taken by Colombia or a per22 son of Colombia from the seabed or subsoil out23 side the territorial waters of Colombia, if Co24 lombia has rights to exploit such seabed or sub25 soil. 


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1 (ii) Goods taken by the United States or a 

2 person of the United States from the seabed or 

3 subsoil outside the territorial waters of the 

4 United States, if the United States has rights 

5 to exploit such seabed or subsoil. 

6 (I) Goods taken from outer space, if the 

7 goods are obtained by Colombia or the United 

8 States or a person of Colombia or the United 

9 States and not processed in the territory of a 

10 country other than Colombia or the United 

11 States. 

12 (J) Waste and scrap derived from— 

13 (i) manufacturing or processing oper14 ations in the territory of Colombia, the 

15 United States, or both; or 

16 (ii) used goods collected in the terri17 tory of Colombia, the United States, or 

18 both, if such goods are fit only for the re19 covery of raw materials. 

20 (K) Recovered goods derived in the terri21 tory of Colombia, the United States, or both, 

22 from used goods, and used in the territory of 

23 Colombia, the United States, or both, in the 

24 production of remanufactured goods. 


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1 (L) Goods, at any stage of production, pro2 duced in the territory of Colombia, the United 

3 States, or both, exclusively from— 

4 (i) goods referred to in any of sub5 paragraphs (A) through (J); or 

6 (ii) the derivatives of goods referred 

7 to in clause (i). 

8 (6) IDENTICAL GOODS.—The term ‘‘identical 

9 goods’’ means goods that are the same in all re10 spects relevant to the rule of origin that qualifies the 

11 goods as originating goods. 

12 (7) INDIRECT MATERIAL.—The term ‘‘indirect 

13 material’’ means a good used in the production, test14 ing, or inspection of another good but not physically 

15 incorporated into that other good, or a good used in 

16 the maintenance of buildings or the operation of 

17 equipment associated with the production of another 

18 good, including— 

19 (A) fuel and energy; 

20 (B) tools, dies, and molds; 

21 (C) spare parts and materials used in the 

22 maintenance of equipment or buildings; 

23 (D) lubricants, greases, compounding ma24 terials, and other materials used in production 

25 or used to operate equipment or buildings; 


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

2 safety equipment, and supplies; 

3 (F) equipment, devices, and supplies used 

4 for testing or inspecting the good; 

5 (G) catalysts and solvents; and 

6 (H) any other goods that are not incor7 porated into the other good but the use of 

8 which in the production of the other good can 

9 reasonably be demonstrated to be a part of that 

10 production. 

11 (8) MATERIAL.—The term ‘‘material’’ means a 

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

13 including a part or an ingredient. 

14 (9) MATERIAL THAT IS SELF-PRODUCED.—The 

15 term ‘‘material that is self-produced’’ means an orig16 inating material that is produced by a producer of 

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

18 (10) MODEL LINE OF MOTOR VEHICLES.—The 

19 term ‘‘model line of motor vehicles’’ means a group 

20 of motor vehicles having the same platform or model 

21 name. 

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

23 total cost minus sales promotion, marketing, and 

24 after-sales service costs, royalties, shipping and 


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1 packing costs, and nonallowable interest costs that 

2 are included in the total cost. 

3 (12) NONALLOWABLE INTEREST COSTS.—The 

4 term ‘‘nonallowable interest costs’’ means interest 

5 costs incurred by a producer that exceed 700 basis 

6 points above the applicable official interest rate for 

7 comparable maturities of the country in which the 

8 producer is located. 

9 (13) NONORIGINATING GOOD OR NONORIGI10 NATING MATERIAL.—The terms ‘‘nonoriginating 

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

12 or material, as the case may be, that does not qual13 ify as originating under this section. 

14 (14) PACKING MATERIALS AND CONTAINERS

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

16 containers for shipment’’ means goods used to pro17 tect another good during its transportation and does 

18 not include the packaging materials and containers 

19 in which the other good is packaged for retail sale. 

20 (15) PREFERENTIAL TARIFF TREATMENT.— 

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

22 customs duty rate, and the treatment under article 

23 2.10.4 of the Agreement, that is applicable to an 

24 originating good pursuant to the Agreement. 


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1 (16) PRODUCER.—The term ‘‘producer’’ means 

2 a person who engages in the production of a good 

3 in the territory of Colombia or the United States. 

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

5 means growing, mining, harvesting, fishing, raising, 

6 trapping, hunting, manufacturing, processing, as7 sembling, or disassembling a good. 

8 (18) REASONABLY ALLOCATE.—The term ‘‘rea9 sonably allocate’’ means to apportion in a manner 

10 that would be appropriate under generally accepted 

11 accounting principles. 

12 (19) RECOVERED GOODS.—The term ‘‘recov13 ered goods’’ means materials in the form of indi14 vidual parts that are the result of— 

15 (A) the disassembly of used goods into in16 dividual parts; and 

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

18 other processing that is necessary for improve19 ment to sound working condition of such indi20 vidual parts. 

21 (20) REMANUFACTURED GOOD.—The term ‘‘re22 manufactured good’’ means an industrial good as23 sembled in the territory of Colombia or the United 

24 States, or both, that is classified under chapter 84, 


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1 85, 87, or 90 or heading 9402, other than a good 

2 classified under heading 8418 or 8516, and that— 

3 (A) is entirely or partially comprised of re4 covered goods; and 

5 (B) has a similar life expectancy and en6 joys a factory warranty similar to such a good 

7 that is new. 

8 (21) TOTAL COST.— 

9 (A) IN GENERAL.—The term ‘‘total 

10 cost’’— 

11 (i) means all product costs, period 

12 costs, and other costs for a good incurred 

13 in the territory of Colombia, the United 

14 States, or both; and 

15 (ii) does not include profits that are 

16 earned by the producer, regardless of 

17 whether they are retained by the producer 

18 or paid out to other persons as dividends, 

19 or taxes paid on those profits, including 

20 capital gains taxes. 

21 (B) OTHER DEFINITIONS.—In this para22 graph: 

23 (i) PRODUCT COSTS.—The term 

24 ‘‘product costs’’ means costs that are asso25 ciated with the production of a good and 


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1 include the value of materials, direct labor 

2 costs, and direct overhead. 

3 (ii) PERIOD COSTS.—The term ‘‘pe4 riod costs’’ means costs, other than prod5 uct costs, that are expensed in the period 

6 in which they are incurred, such as selling 

7 expenses and general and administrative 

8 expenses. 

9 (iii) OTHER COSTS.—The term ‘‘other 

10 costs’’ means all costs recorded on the 

11 books of the producer that are not product 

12 costs or period costs, such as interest. 

13 (22) USED.—The term ‘‘used’’ means utilized 

14 or consumed in the production of goods. 

15 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

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

17 to proclaim, as part of the HTS— 

18 (A) the provisions set forth in Annex 3–A 

19 and Annex 4.1 of the Agreement; and 

20 (B) any additional subordinate category 

21 that is necessary to carry out this title con22 sistent with the Agreement. 

23 (2) FABRICS AND YARNS NOT AVAILABLE IN

24 COMMERCIAL QUANTITIES IN THE UNITED

25 STATES.—The President is authorized to proclaim 


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

2 3–B of the Agreement in an unrestricted quantity, 

3 as provided in article 3.3.5(e) of the Agreement. 

4 (3) MODIFICATIONS.— 

5 (A) IN GENERAL.—Subject to the consulta6 tion and layover provisions of section 104, the 

7 President may proclaim modifications to the 

8 provisions proclaimed under the authority of 

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

10 chapters 50 through 63 (as included in Annex 

11 3–A of the Agreement). 

12 (B) ADDITIONAL PROCLAMATIONS.—Not13 withstanding subparagraph (A), and subject to 

14 the consultation and layover provisions of sec15 tion 104, the President may proclaim before the 

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

17 of the enactment of this Act, modifications to 

18 correct any typographical, clerical, or other non19 substantive technical error regarding the provi20 sions of chapters 50 through 63 (as included in 

21 Annex 3–A of the Agreement). 

22 (4) FABRICS, YARNS, OR FIBERS NOT AVAIL23 ABLE IN COMMERCIAL QUANTITIES IN COLOMBIA

24 AND THE UNITED STATES.— 


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1 (A) IN GENERAL.—Notwithstanding para2 graph (3)(A), the list of fabrics, yarns, and fi3 bers set forth in Annex 3–B of the Agreement 

4 may be modified as provided for in this para5 graph. 

6 (B) DEFINITIONS.—In this paragraph: 

7 (i) The term ‘‘interested entity’’ 

8 means the Government of Colombia, a po9 tential or actual purchaser of a textile or 

10 apparel good, or a potential or actual sup11 plier of a textile or apparel good. 

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

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

14 legal holidays observed by the Government 

15 of the United States. 

16 (C) REQUESTS TO ADD FABRICS, YARNS, 

17 OR FIBERS.—(i) An interested entity may re18 quest the President to determine that a fabric, 

19 yarn, or fiber is not available in commercial 

20 quantities in a timely manner in Colombia and 

21 the United States and to add that fabric, yarn, 

22 or fiber to the list in Annex 3–B of the Agree23 ment in a restricted or unrestricted quantity. 

24 (ii) After receiving a request under clause 

25 (i), the President may determine whether— 


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1 (I) the fabric, yarn, or fiber is avail2 able in commercial quantities in a timely 

3 manner in Colombia or the United States; 

4 or 

5 (II) any interested entity objects to 

6 the request. 

7 (iii) The President may, within the time 

8 periods specified in clause (iv), proclaim that 

9 the fabric, yarn, or fiber that is the subject of 

10 the request is added to the list in Annex 3–B 

11 of the Agreement in an unrestricted quantity, 

12 or in any restricted quantity that the President 

13 may establish, if the President has determined 

14 under clause (ii) that— 

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

16 available in commercial quantities in a 

17 timely manner in Colombia and the United 

18 States; or 

19 (II) no interested entity has objected 

20 to the request. 

21 (iv) The time periods within which the 

22 President may issue a proclamation under 

23 clause (iii) are— 


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1 (I) not later than 30 days after the 

2 date on which a request is submitted under 

3 clause (i); or 

4 (II) not later than 44 days after the 

5 request is submitted, if the President de6 termines, within 30 days after the date on 

7 which the request is submitted, that the 

8 President does not have sufficient informa9 tion to make a determination under clause 

10 (ii). 

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

12 proclamation made under clause (iii) shall take 

13 effect on the date on which the text of the proc14 lamation is published in the Federal Register. 

15 (vi) Not later than 6 months after pro16 claiming under clause (iii) that a fabric, yarn, 

17 or fiber is added to the list in Annex 3–B of the 

18 Agreement in a restricted quantity, the Presi19 dent may eliminate the restriction if the Presi20 dent determines that the fabric, yarn, or fiber 

21 is not available in commercial quantities in a 

22 timely manner in Colombia and the United 

23 States. 

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

25 after an interested entity submits a request 


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

2 not, within the applicable time period specified 

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

4 under subparagraph (C)(ii) regarding the re5 quest, the fabric, yarn, or fiber that is the sub6 ject of the request shall be considered to be 

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

8 Annex 3–B of the Agreement beginning— 

9 (i) 45 days after the date on which 

10 the request was submitted; or 

11 (ii) 60 days after the date on which 

12 the request was submitted, if the President 

13 made a determination under subparagraph 

14 (C)(iv)(II). 

15 (E) REQUESTS TO RESTRICT OR REMOVE

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

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

18 President to restrict the quantity of, or remove 

19 from the list in Annex 3–B of the Agreement, 

20 any fabric, yarn, or fiber— 

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

22 an unrestricted quantity pursuant to para23 graph (2) or subparagraph (C)(iii) or (D) 

24 of this paragraph; or 


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1 (II) with respect to which the Presi2 dent has eliminated a restriction under 

3 subparagraph (C)(vi). 

4 (ii) An interested entity may submit a re5 quest under clause (i) at any time beginning 6 

6 months after the date of the action described in 

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

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

9 on which a request under clause (i) is sub10 mitted, the President may proclaim an action 

11 provided for under clause (i) if the President 

12 determines that the fabric, yarn, or fiber that 

13 is the subject of the request is available in com14 mercial quantities in a timely manner in Colom15 bia or the United States. 

16 (iv) A proclamation under clause (iii) shall 

17 take effect no earlier than the date that is 6 

18 months after the date on which the text of the 

19 proclamation is published in the Federal Reg20 ister. 

21 (F) PROCEDURES.—The President shall 

22 establish procedures— 

23 (i) governing the submission of a re24 quest under subparagraphs (C) and (E); 

25 and 


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1 (ii) providing an opportunity for inter2 ested entities to submit comments and sup3 porting evidence before the President 

4 makes a determination under subpara5 graph (C) (ii) or (vi) or (E)(iii). 

6 SEC. 204. CUSTOMS USER FEES. 

7 (a) IN GENERAL.—Section 13031(b) of the Consoli8 dated Omnibus Budget Reconciliation Act of 1985 (19 

9 U.S.C. 58c(b)) is amended by adding after paragraph 

10 (18), the following: 

11 ‘‘(19) No fee may be charged under subsection 

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

13 originating goods under section 203 of the United 

14 States-Colombia Trade Promotion Agreement Imple15 mentation Act. Any service for which an exemption 

16 from such fee is provided by reason of this para17 graph may not be funded with money contained in 

18 the Customs User Fee Account.’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 subsection (a) shall take effect on October 1, 2013. 

21 (c) REFUND.—Any fee described in paragraph (19) 

22 of section 13031(b) of the Consolidated Omnibus Budget 

23 Reconciliation Act of 1985 (19 U.S.C. 58c(b)) (as added 

24 by subsection (a)) that is paid on or after the date that 

25 the United States-Colombia Trade Promotion Agreement 


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1 enters into force and before October 1, 2013, shall be re2 funded with interest if application for such refund is made 

3 on or after October 1, 2013, and before July 1, 2014. 

4 SEC. 205. 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 (11) as 

12 paragraph (12); and 

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

14 following new paragraph: 

15 ‘‘(11) PRIOR DISCLOSURE REGARDING CLAIMS

16 UNDER THE UNITED STATES-COLOMBIA TRADE PRO17 MOTION AGREEMENT.—An importer shall not be 

18 subject to penalties under subsection (a) for making 

19 an incorrect claim that a good qualifies as an origi20 nating good under section 203 of the United States21 Colombia Trade Promotion Agreement Implementa22 tion Act if the importer, in accordance with regula23 tions issued by the Secretary of the Treasury, 

24 promptly and voluntarily makes a corrected declaraVerDate Aug 31 2005 04:29 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H5724.IH H5724

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1 tion and pays any duties owing with respect to that 

2 good.’’; and 

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

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

6 UNITED STATES-COLOMBIA TRADE PROMOTION AGREE7 MENT.— 

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 CTPA 

11 certification of origin (as defined in section 

12 508(i)(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 provided for in section 203 

15 of the United States-Colombia Trade Promotion 

16 Agreement Implementation Act. The procedures and 

17 penalties of this section that apply to a violation of 

18 subsection (a) also apply to a violation of this sub19 section. 

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 CTPA certification 

24 of origin has reason to believe that such certification 

25 contains or is based on incorrect information, the exVerDate Aug 31 2005 04:29 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H5724.IH H5724

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1 porter or producer voluntarily provides written no2 tice of such incorrect information to every person to 

3 whom the certification was issued. 

4 ‘‘(3) EXCEPTION.—A person shall not be con5 sidered to have violated paragraph (1) if— 

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

7 time it was provided in a CTPA certification of 

8 origin but was later rendered incorrect due to 

9 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 ‘‘(j) DENIAL OF PREFERENTIAL TARIFF TREAT19 MENT UNDER THE UNITED STATES-COLOMBIA TRADE

20 PROMOTION AGREEMENT.—If U.S. Customs and Border 

21 Protection or U.S. Immigration and Customs Enforce22 ment of the Department of Homeland Security finds indi23 cations of a pattern of conduct by an importer, exporter, 

24 or producer of false or unsupported representations that 

25 goods qualify under the rules of origin provided for in secVerDate Aug 31 2005 04:29 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H5724.IH H5724

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1 tion 203 of the United States-Colombia Trade Promotion 

2 Agreement Implementation Act, U.S. Customs and Border 

3 Protection, in accordance with regulations issued by the 

4 Secretary of the Treasury, may suspend preferential tariff 

5 treatment under the United States-Colombia Trade Pro6 motion Agreement to entries of identical goods covered by 

7 subsequent representations by that importer, exporter, or 

8 producer until U.S. Customs and Border Protection deter9 mines that representations of that person are in con10 formity with such section 203.’’. 

11 SEC. 206. RELIQUIDATION OF ENTRIES. 

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

13 1930 (19 U.S.C. 1520(d)) is amended in the matter pre14 ceding paragraph (1)— 

15 (1) by striking ‘‘or’’; and 

16 (2) by striking ‘‘for which’’ and inserting ‘‘, or 

17 section 203 of the United States-Colombia Trade 

18 Promotion Agreement Implementation Act for 

19 which’’. 

20 SEC. 207. RECORDKEEPING REQUIREMENTS. 

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

22 1508) is amended— 

23 (1) by redesignating subsection (i) as subsection 

24 (j); 


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1 (2) by inserting after subsection (h) the fol2 lowing new subsection: 

3 ‘‘(i) CERTIFICATIONS OF ORIGIN FOR GOODS EX4 PORTED UNDER THE UNITED STATES-COLOMBIA TRADE

5 PROMOTION AGREEMENT.— 

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

7 ‘‘(A) RECORDS AND SUPPORTING DOCU8 MENTS.—The term ‘records and supporting 

9 documents’ means, with respect to an exported 

10 good under paragraph (2), records and docu11 ments related to the origin of the good, includ12 ing— 

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

14 and payment for, the good; 

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

16 and payment for, all materials, including 

17 indirect materials, used in the production 

18 of the good; and 

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

20 the form in which it was exported. 

21 ‘‘(B) CTPA CERTIFICATION OF ORIGIN.— 

22 The term ‘CTPA certification of origin’ means 

23 the certification established under article 4.15 

24 of the United States-Colombia Trade Promotion 


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1 Agreement that a good qualifies as an origi2 nating good under such Agreement. 

3 ‘‘(2) EXPORTS TO COLOMBIA.—Any person who 

4 completes and issues a CTPA certification of origin 

5 for a good exported from the United States shall 

6 make, keep, and, pursuant to rules and regulations 

7 promulgated by the Secretary of the Treasury, 

8 render for examination and inspection all records 

9 and supporting documents related to the origin of 

10 the good (including the certification or copies there11 of). 

12 ‘‘(3) RETENTION PERIOD.—The person who 

13 issues a CTPA certification of origin shall keep the 

14 records and supporting documents relating to that 

15 certification of origin for a period of at least 5 years 

16 after the date on which the certification is issued.’’; 

17 and 

18 (3) in subsection (j), as so redesignated by 

19 striking ‘‘(f), (g), or (h)’’ and inserting ‘‘(f), (g), (h), 

20 or (i)’’. 

21 SEC. 208. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

22 OR APPAREL GOODS. 

23 (a) ACTION DURING VERIFICATION.— 

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

25 Treasury requests the Government of Colombia to 


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1 conduct a verification pursuant to article 3.2 of the 

2 Agreement for purposes of making a determination 

3 under paragraph (2), the President may direct the 

4 Secretary to take appropriate action described in 

5 subsection (b) while the verification is being con6 ducted. 

7 (2) DETERMINATION.—A determination under 

8 this paragraph is a determination of the Secretary 

9 that— 

10 (A) an exporter or producer in Colombia is 

11 complying with applicable customs laws, regula12 tions, and procedures regarding trade in textile 

13 or apparel goods, or 

14 (B) a claim that a textile or apparel good 

15 exported or produced by such exporter or pro16 ducer— 

17 (i) qualifies as an originating good 

18 under section 203, or 

19 (ii) is a good of Colombia, 

20 is accurate. 

21 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

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

23 (1) suspension of preferential tariff treatment 

24 under the Agreement with respect to— 


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1 (A) any textile or apparel good exported or 

2 produced by the person that is the subject of a 

3 verification under subsection (a)(1) regarding 

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

5 the Secretary determines that there is insuffi6 cient information to support any claim for pref7 erential tariff treatment that has been made 

8 with respect to any such good; or 

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

10 claim of preferential tariff treatment has been 

11 made that is the subject of a verification under 

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

13 subsection (a)(2)(B), if the Secretary deter14 mines that there is insufficient information to 

15 support that claim; 

16 (2) denial of preferential tariff treatment under 

17 the Agreement with respect to— 

18 (A) any textile or apparel good exported or 

19 produced by the person that is the subject of a 

20 verification under subsection (a)(1) regarding 

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

22 the Secretary determines that the person has 

23 provided incorrect information to support any 

24 claim for preferential tariff treatment that has 

25 been made with respect to any such good; or 


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

2 claim of preferential tariff treatment has been 

3 made that is the subject of a verification under 

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

5 subsection (a)(2)(B), if the Secretary deter6 mines that a person has provided incorrect in7 formation to support that claim; 

8 (3) detention of any textile or apparel good ex9 ported or produced by the person that is the subject 

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

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

12 claim described in subsection (a)(2)(B), if the Sec13 retary determines that there is insufficient informa14 tion to determine the country of origin of any such 

15 good; and 

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

17 any textile or apparel good exported or produced by 

18 the person that is the subject of a verification under 

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

20 subsection (a)(2)(A) or a claim described in sub21 section (a)(2)(B), if the Secretary determines that 

22 the person has provided incorrect information as to 

23 the country of origin of any such good. 

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

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


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1 President may direct the Secretary to take appropriate ac2 tion described in subsection (d) until such time as the Sec3 retary receives information sufficient to make the deter4 mination under subsection (a)(2) or until such earlier date 

5 as the President may direct. 

6 (d) APPROPRIATE ACTION DESCRIBED.—Appro7 priate action under subsection (c) includes— 

8 (1) denial of preferential tariff treatment under 

9 the Agreement with respect to— 

10 (A) any textile or apparel good exported or 

11 produced by the person that is the subject of a 

12 verification under subsection (a)(1) regarding 

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

14 the Secretary determines that there is insuffi15 cient information to support, or that the person 

16 has provided incorrect information to support, 

17 any claim for preferential tariff treatment that 

18 has been made with respect to any such good; 

19 or 

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

21 claim of preferential tariff treatment has been 

22 made that is the subject of a verification under 

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

24 subsection (a)(2)(B), if the Secretary deter25 mines that there is insufficient information to 


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1 support, or that a person has provided incorrect 

2 information to support, that claim; and 

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

4 any textile or apparel good exported or produced by 

5 the person that is the subject of a verification under 

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

7 subsection (a)(2)(A) or a claim described in sub8 section (a)(2)(B), if the Secretary determines that 

9 there is insufficient information to determine, or 

10 that the person has provided incorrect information 

11 as to, the country of origin of any such good. 

12 (e) PUBLICATION OF NAME OF PERSON.—In accord13 ance with article 3.2.6 of the Agreement, the Secretary 

14 may publish the name of any person that the Secretary 

15 has determined— 

16 (1) is engaged in circumvention of applicable 

17 laws, regulations, or procedures affecting trade in 

18 textile or apparel goods; or 

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

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

21 (f) VERIFICATIONS IN THE UNITED STATES.—If the 

22 government of a country that is a party to a free trade 

23 agreement with the United States makes a request for a 

24 verification pursuant to that agreement, the Secretary 

25 may request a verification of the production of any textile 


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1 or apparel good in order to assist that government in de2 termining— 

3 (1) whether a claim of origin under the agree4 ment for a textile or apparel good is accurate; or 

5 (2) whether an exporter, producer, or other en6 terprise located in the United States involved in the 

7 movement of textile or apparel goods from the 

8 United States to the territory of the requesting gov9 ernment is complying with applicable customs laws, 

10 regulations, and procedures regarding trade in tex11 tile or apparel goods. 

12 SEC. 209. REGULATIONS. 

13 The Secretary of the Treasury shall prescribe such 

14 regulations as may be necessary to carry out— 

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

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

17 (3) any proclamation issued under section 

18 203(o). 

19 TITLE III—RELIEF FROM 

20 IMPORTS 

21 SEC. 301. DEFINITIONS. 

22 In this title: 

23 (1) COLOMBIAN ARTICLE.—The term ‘‘Colom24 bian article’’ means an article that qualifies as an 

25 originating good under section 203(b). 


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1 (2) COLOMBIAN TEXTILE OR APPAREL ARTI2 CLE.—The term ‘‘Colombian textile or apparel arti3 cle’’ means a textile or apparel good (as defined in 

4 section 3(4)) that is a Colombian article. 

5 Subtitle A—Relief From Imports 

6 Benefiting From the Agreement 

7 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

8 (a) FILING OF PETITION.—A petition requesting ac9 tion under this subtitle for the purpose of adjusting to 

10 the obligations of the United States under the Agreement 

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

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

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

14 The Commission shall transmit a copy of any petition filed 

15 under this subsection to the United States Trade Rep16 resentative. 

17 (b) INVESTIGATION AND DETERMINATION.—Upon 

18 the filing of a petition under subsection (a), the Commis19 sion, unless subsection (d) applies, shall promptly initiate 

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

21 reduction or elimination of a duty provided for under the 

22 Agreement, a Colombian article is being imported into the 

23 United States in such increased quantities, in absolute 

24 terms or relative to domestic production, and under such 

25 conditions that imports of the Colombian article constitute 


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1 a substantial cause of serious injury or threat thereof to 

2 the domestic industry producing an article that is like, or 

3 directly competitive with, the imported article. 

4 (c) APPLICABLE PROVISIONS.—The following provi5 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

6 2252) apply with respect to any investigation initiated 

7 under subsection (b): 

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

9 (b). 

10 (2) Subsection (c). 

11 (3) Subsection (i). 

12 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

13 investigation may be initiated under this section with re14 spect to any Colombian article if, after the date on which 

15 the Agreement enters into force, import relief has been 

16 provided with respect to that Colombian article under this 

17 subtitle. 

18 SEC. 312. COMMISSION ACTION ON PETITION. 

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

20 the date on which an investigation is initiated under sec21 tion 311(b) with respect to a petition, the Commission 

22 shall make the determination required under that section. 

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

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

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


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

2 to determinations and findings made under this section 

3 as if such determinations and findings were made under 

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

5 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

6 DETERMINATION AFFIRMATIVE.— 

7 (1) IN GENERAL.—If the determination made 

8 by the Commission under subsection (a) with respect 

9 to imports of an article is affirmative, or if the 

10 President may consider a determination of the Com11 mission to be an affirmative determination as pro12 vided for under paragraph (1) of section 330(d) of 

13 the Tariff Act of 1930 (19 U.S.C. 1330(d)), the 

14 Commission shall find, and recommend to the Presi15 dent in the report required under subsection (d), the 

16 amount of import relief that is necessary to remedy 

17 or prevent the injury found by the Commission in 

18 the determination and to facilitate the efforts of the 

19 domestic industry to make a positive adjustment to 

20 import competition. 

21 (2) LIMITATION ON RELIEF.—The import relief 

22 recommended by the Commission under this sub23 section shall be limited to the relief described in sec24 tion 313(c). 


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1 (3) VOTING; SEPARATE VIEWS.—Only those 

2 members of the Commission who voted in the af3 firmative under subsection (a) are eligible to vote on 

4 the proposed action to remedy or prevent the injury 

5 found by the Commission. Members of the Commis6 sion who did not vote in the affirmative may submit, 

7 in the report required under subsection (d), separate 

8 views regarding what action, if any, should be taken 

9 to remedy or prevent the injury. 

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

11 date that is 30 days after the date on which a determina12 tion is made under subsection (a) with respect to an inves13 tigation, the Commission shall submit to the President a 

14 report that includes— 

15 (1) the determination made under subsection 

16 (a) and an explanation of the basis for the deter17 mination; 

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

19 affirmative, any findings and recommendations for 

20 import relief made under subsection (c) and an ex21 planation of the basis for each recommendation; and 

22 (3) any dissenting or separate views by mem23 bers of the Commission regarding the determination 

24 referred to in paragraph (1) and any finding or rec25 ommendation referred to in paragraph (2). 


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

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

3 promptly make public the report (with the exception of 

4 information which the Commission determines to be con5 fidential) and shall publish a summary of the report in 

6 the Federal Register. 

7 SEC. 313. PROVISION OF RELIEF. 

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

9 30 days after the date on which the President receives the 

10 report of the Commission in which the Commission’s de11 termination under section 312(a) is affirmative, or which 

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

13 President considers to be affirmative under paragraph (1) 

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

15 1330(d)(1)), the President, subject to subsection (b), shall 

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

17 of such determination to the extent that the President de18 termines necessary to remedy or prevent the injury found 

19 by the Commission and to facilitate the efforts of the do20 mestic industry to make a positive adjustment to import 

21 competition. 

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

23 provide import relief under this section if the President 

24 determines that the provision of the import relief will not 

25 provide greater economic and social benefits than costs. 


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1 (c) NATURE OF RELIEF.— 

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

3 President is authorized to provide under this section 

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

5 (A) The suspension of any further reduc6 tion provided for under Annex 2.3 of the Agree7 ment in the duty imposed on the article. 

8 (B) An increase in the rate of duty im9 posed on the article to a level that does not ex10 ceed the lesser of— 

11 (i) the column 1 general rate of duty 

12 imposed under the HTS on like articles at 

13 the time the import relief is provided; or 

14 (ii) the column 1 general rate of duty 

15 imposed under the HTS on like articles on 

16 the day before the date on which the 

17 Agreement enters into force. 

18 (2) PROGRESSIVE LIBERALIZATION.—If the pe19 riod for which import relief is provided under this 

20 section is greater than 1 year, the President shall 

21 provide for the progressive liberalization (described 

22 in article 8.2.2 of the Agreement) of such relief at 

23 regular intervals during the period of its application. 

24 (d) PERIOD OF RELIEF.— 


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

2 any import relief that the President provides under 

3 this section may not be in effect for more than 2 

4 years. 

5 (2) EXTENSION.— 

6 (A) IN GENERAL.—Subject to subpara7 graph (C), the President, after receiving a de8 termination from the Commission under sub9 paragraph (B) that is affirmative, or which the 

10 President considers to be affirmative under 

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

12 Act of 1930 (19 U.S.C. 1330(d)(1)), may ex13 tend the effective period of any import relief 

14 provided under this section by up to 2 years, if 

15 the President determines that— 

16 (i) the import relief continues to be 

17 necessary to remedy or prevent serious in18 jury and to facilitate adjustment by the do19 mestic industry to import competition; and 

20 (ii) there is evidence that the industry 

21 is making a positive adjustment to import 

22 competition. 

23 (B) ACTION BY COMMISSION.— 

24 (i) INVESTIGATION.—Upon a petition 

25 on behalf of the industry concerned that is 


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1 filed with the Commission not earlier than 

2 the date that is 9 months, and not later 

3 than the date that is 6 months, before the 

4 date on which any action taken under sub5 section (a) is to terminate, the Commission 

6 shall conduct an investigation to determine 

7 whether action under this section continues 

8 to be necessary to remedy or prevent seri9 ous injury and whether there is evidence 

10 that the industry is making a positive ad11 justment to import competition. 

12 (ii) NOTICE AND HEARING.—The 

13 Commission shall publish notice of the 

14 commencement of any proceeding under 

15 this subparagraph in the Federal Register 

16 and shall, within a reasonable time there17 after, hold a public hearing at which the 

18 Commission shall afford interested parties 

19 and consumers an opportunity to be 

20 present, to present evidence, and to re21 spond to the presentations of other parties 

22 and consumers, and otherwise to be heard. 

23 (iii) REPORT.—The Commission shall 

24 submit to the President a report on its in25 vestigation and determination under this 


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1 subparagraph not later than 60 days be2 fore the action under subsection (a) is to 

3 terminate, unless the President specifies a 

4 different date. 

5 (C) PERIOD OF IMPORT RELIEF.—Any im6 port relief provided under this section, including 

7 any extensions thereof, may not, in the aggre8 gate, be in effect for more than 4 years. 

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

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

13 termination and on or before December 31 of the 

14 year in which such termination occurs shall be the 

15 rate that, according to the Schedule of the United 

16 States to Annex 2.3 of the Agreement, would have 

17 been in effect 1 year after the provision of relief 

18 under subsection (a); and 

19 (2) the rate of duty for that article after De20 cember 31 of the year in which such termination oc21 curs shall be, at the discretion of the President, ei22 ther— 

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

25 States to Annex 2.3 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 forth in the Schedule of 

4 the United States to Annex 2.3 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 that is subject to import relief 

9 under— 

10 (A) subtitle B; or 

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

12 of 1974 (19 U.S.C. 2251 et seq.); or 

13 (2) any article on which an additional duty as14 sessed under section 202(b) is in effect. 

15 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

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

17 import relief may be provided under this subtitle after the 

18 date that is 10 years after the date on which the Agree19 ment enters into force. 

20 (b) EXCEPTION.—If an article for which relief is pro21 vided under this subtitle is an article for which the period 

22 for tariff elimination, set forth in the Schedule of the 

23 United States to Annex 2.3 of the Agreement, is greater 

24 than 10 years, no relief under this subtitle may be proVerDate Aug 31 2005 04:29 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\H5724.IH H5724

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1 vided for that article after the date on which that period 

2 ends. 

3 SEC. 315. COMPENSATION AUTHORITY. 

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

5 (19 U.S.C. 2133), any import relief provided by the Presi6 dent under section 313 shall be treated as action taken 

7 under chapter 1 of title II of such Act (19 U.S.C. 2251 

8 et seq.). 

9 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

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

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

12 (1) by striking ‘‘and’’; and 

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

14 and title III of the United States-Colombia Trade 

15 Promotion Agreement Implementation Act’’. 

16 Subtitle B—Textile and Apparel 

17 Safeguard Measures 

18 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 

19 (a) IN GENERAL.—A request for action under this 

20 subtitle for the purpose of adjusting to the obligations of 

21 the United States under the Agreement may be filed with 

22 the President by an interested party. Upon the filing of 

23 a request, the President shall review the request to deter24 mine, from information presented in the request, whether 

25 to commence consideration of the request. 


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1 (b) PUBLICATION OF REQUEST.—If the President de2 termines that the request under subsection (a) provides 

3 the information necessary for the request to be considered, 

4 the President shall publish in the Federal Register a no5 tice of commencement of consideration of the request, and 

6 notice seeking public comments regarding the request. The 

7 notice shall include a summary of the request and the 

8 dates by which comments and rebuttals must be received. 

9 SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 

10 (a) DETERMINATION.— 

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

12 made under section 321(b), the President shall de13 termine whether, as a result of the elimination of a 

14 duty under the Agreement, a Colombian textile or 

15 apparel article is being imported into the United 

16 States in such increased quantities, in absolute 

17 terms or relative to the domestic market for that ar18 ticle, and under such conditions as to cause serious 

19 damage, or actual threat thereof, to a domestic in20 dustry producing an article that is like, or directly 

21 competitive with, the imported article. 

22 (2) SERIOUS DAMAGE.—In making a deter23 mination under paragraph (1), the President— 

24 (A) shall examine the effect of increased 

25 imports on the domestic industry, as reflected 


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1 in changes in such relevant economic factors as 

2 output, productivity, utilization of capacity, in3 ventories, market share, exports, wages, em4 ployment, domestic prices, profits and losses, 

5 and investment, no one of which is necessarily 

6 decisive; and 

7 (B) shall not consider changes in consumer 

8 preference or changes in technology in the 

9 United States as factors supporting a deter10 mination of serious damage or actual threat 

11 thereof. 

12 (b) PROVISION OF RELIEF.— 

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

14 subsection (a) is affirmative, the President may pro15 vide relief from imports of the article that is the 

16 subject of such determination, as provided in para17 graph (2), to the extent that the President deter18 mines necessary to remedy or prevent the serious 

19 damage and to facilitate adjustment by the domestic 

20 industry. 

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

22 President is authorized to provide under this sub23 section with respect to imports of an article is an in24 crease in the rate of duty imposed on the article to 

25 a level that does not exceed the lesser of— 


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1 (A) the column 1 general rate of duty im2 posed under the HTS on like articles at the 

3 time the import relief is provided; or 

4 (B) the column 1 general rate of duty im5 posed under the HTS on like articles on the 

6 day before the date on which the Agreement en7 ters into force. 

8 SEC. 323. PERIOD OF RELIEF. 

9 (a) IN GENERAL.—Subject to subsection (b), the im10 port relief that the President provides under section 

11 322(b) may not be in effect for more than 2 years. 

12 (b) EXTENSION.— 

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

14 the President may extend the effective period of any 

15 import relief provided under this subtitle for a pe16 riod of not more than 1 year, if the President deter17 mines that— 

18 (A) the import relief continues to be nec19 essary to remedy or prevent serious damage 

20 and to facilitate adjustment by the domestic in21 dustry to import competition; and 

22 (B) there is evidence that the industry is 

23 making a positive adjustment to import com24 petition. 


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1 (2) LIMITATION.—Any relief provided under 

2 this subtitle, including any extensions thereof, may 

3 not, in the aggregate, be in effect for more than 3 

4 years. 

5 SEC. 324. ARTICLES EXEMPT FROM RELIEF. 

6 The President may not provide import relief under 

7 this subtitle with respect to an article if— 

8 (1) import relief previously has been provided 

9 under this subtitle with respect to that article; or 

10 (2) the article is subject to import relief 

11 under— 

12 (A) subtitle A; or 

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

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

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

16 On the date on which import relief under this subtitle 

17 is terminated with respect to an article, the rate of duty 

18 on that article shall be the rate that would have been in 

19 effect, but for the provision of such relief. 

20 SEC. 326. TERMINATION OF RELIEF AUTHORITY. 

21 No import relief may be provided under this subtitle 

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

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


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1 SEC. 327. 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 this subtitle shall be treated as action taken 

5 under chapter 1 of title II of such Act (19 U.S.C. 2251 

6 et seq.). 

7 SEC. 328. CONFIDENTIAL BUSINESS INFORMATION. 

8 The President may not release information received 

9 in connection with an investigation or determination under 

10 this subtitle which the President considers to be confiden11 tial business information unless the party submitting the 

12 confidential business information had notice, at the time 

13 of submission, that such information would be released by 

14 the President, or such party subsequently consents to the 

15 release of the information. To the extent a party submits 

16 confidential business information, the party shall also pro17 vide a nonconfidential version of the information in which 

18 the confidential business information is summarized or, if 

19 necessary, deleted. 

20 Subtitle C—Cases Under Title II of 

21 the Trade Act of 1974 

22 SEC. 331. FINDINGS AND ACTION ON GOODS OF COLOMBIA. 

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

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

25 1974 (19 U.S.C. 2251 et seq.), the Commission makes an 

26 affirmative determination (or a determination which the 


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1 President may treat as an affirmative determination under 

2 such chapter by reason of section 330(d) of the Tariff Act 

3 of 1930), the Commission shall also find (and report to 

4 the President at the time such injury determination is sub5 mitted to the President) whether imports of the article of 

6 Colombia that qualify as originating goods under section 

7 203(b) are a substantial cause of serious injury or threat 

8 thereof. 

9 (b) PRESIDENTIAL DETERMINATION REGARDING IM10 PORTS OF COLOMBIA.—In determining the nature and ex11 tent of action to be taken under chapter 1 of title II of 

12 the Trade Act of 1974 (19 U.S.C. 2251 et seq.), the Presi13 dent may exclude from the action goods of Colombia with 

14 respect to which the Commission has made a negative 

15 finding under subsection (a). 

16 TITLE IV—PROCUREMENT 

17 SEC. 401. ELIGIBLE PRODUCTS. 

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

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

20 (1) by striking ‘‘or’’ at the end of clause (vi); 

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

22 (vii) and inserting ‘‘; or’’; and 

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

24 clause: 


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1 ‘‘(viii) a party to the United States2 Colombia Trade Promotion Agreement, a 

3 product or service of that country or in4 strumentality which is covered under that 

5 agreement for procurement by the United 

6 States.’’. 

7 TITLE V—OFFSETS 

8 SEC. 501. CUSTOMS USER FEES. 

9 (a) IN GENERAL.—Section 13031(j)(3)(A) of the 

10 Consolidated Omnibus Budget Reconciliation Act of 1985 

11 (19 U.S.C. 58c(j)(3)(A)) shall be applied by extending by 

12 155 days the date in effect on the date of the enactment 

13 of this Act after which fees may not be charged under 

14 paragraphs (9) and (10) of subsection (a) of such section 

15 13031. 

16 (b) OTHER FEES.—Section 13031(j)(3)(B)(i) of the 

17 Consolidated Omnibus Budget Reconciliation Act of 1985 

18 (19 U.S.C. 58c(j)(3)(B)(i)) shall be applied by extending 

19 by 155 days the date in effect on the date of the enact20 ment of this Act after which fees may not be charged 

21 under paragraphs (1) through (8) of subsection (a) of 

22 such section 13031. 


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1 SEC. 502. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

2 TAXES. 

3 (a) CORPORATE ESTIMATED TAX DUE IN 2012.— 

4 The percentage under subparagraph (B) of section 401(1) 

5 of the Tax Increase Prevention and Reconciliation Act of 

6 2005 (Public Law 109–222; 26 U.S.C. 6655 note) in ef7 fect on the date of the enactment of this Act is increased 

8 by 1 percentage point. 

9 (b) CORPORATE ESTIMATED TAX DUE IN 2013.— 

10 The percentage under subparagraph (C) of section 401(1) 

11 of the Tax Increase Prevention and Reconciliation Act of 

12 2005 (Public Law 109–222; 26 U.S.C. 6655 note) in ef13 fect on the date of the enactment of this Act is increased 

14 by 2 percentage points. 

Æ 


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