I 

112TH CONGRESS 

1ST SESSION H. R. 3079 

To implement the United States–Panama Trade Promotion Agreement. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 3, 2011 

Mr. CANTOR (for himself and Mr. MCDERMOTT) (both by request) introduced 

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

A BILL 

To implement the United States–Panama 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–Panama Trade Promotion Agreement Im6 plementation 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 Benefitting 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 Panamanian articles. 

TITLE IV—MISCELLANEOUS 

Sec. 401. Eligible products. 

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

TITLE V—OFFSETS 


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Sec. 501. Extension of 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 Panama 

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 Panama for 

10 their mutual benefit; 

11 (3) to establish free trade between the United 

12 States and Panama through the reduction and elimi13 nation of barriers to trade in goods and services and 

14 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–Panama 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 3.30 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–Panama Trade Pro24 motion Agreement entered into on June 28, 2007, 


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1 with the Government of Panama and submitted to 

2 Congress on October 3, 2011; and 

3 (2) the statement of administrative action pro4 posed to implement the Agreement that was sub5 mitted to Congress on October 3, 2011. 

6 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

7 AGREEMENT.—At such time as the President determines 

8 that Panama has taken measures necessary to comply 

9 with those provisions of the Agreement that are to take 

10 effect on the date on which the Agreement enters into 

11 force, the President is authorized to exchange notes with 

12 the Government of Panama providing for the entry into 

13 force, on or after January 1, 2012, of the Agreement with 

14 respect to the United States. 

15 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

16 STATES AND STATE LAW. 

17 (a) RELATIONSHIP OF AGREEMENT TO UNITED

18 STATES LAW.— 

19 (1) UNITED STATES LAW TO PREVAIL IN CON20 FLICT.—No provision of the Agreement, nor the ap21 plication of any such provision to any person or cir22 cumstance, which is inconsistent with any law of the 

23 United States shall have effect. 

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

25 be construed— 


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

2 United States, or 

3 (B) to limit any authority conferred under 

4 any law of the United States, 

5 unless specifically provided for in this Act. 

6 (b) RELATIONSHIP OF AGREEMENT TO STATE

7 LAW.— 

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

9 application thereof, may be declared invalid as to 

10 any person or circumstance on the ground that the 

11 provision or application is inconsistent with the 

12 Agreement, except in an action brought by the 

13 United States for the purpose of declaring such law 

14 or application invalid. 

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

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

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

18 State; and 

19 (B) any State law regulating or taxing the 

20 business of insurance. 

21 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI22 VATE REMEDIES.—No person other than the United 

23 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 20 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 2011 to the Department of Commerce up to 

21 $150,000 for the establishment and operations of the of22 fice established or designated under subsection (a) and for 

23 the payment of the United States share of the expenses 

24 of panels established under chapter 20 of 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.— 

14 (1) IN GENERAL.—Sections 1 through 3, this 

15 title, and title V take effect on the date of the enact16 ment of this Act. 

17 (2) CERTAIN AMENDATORY PROVISIONS.—The 

18 amendments made by sections 204, 205, 207, and 

19 401 of this Act take effect on the date of the enact20 ment of this Act and apply with respect to Panama 

21 on the date on which the Agreement enters into 

22 force. 

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

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

25 than this subsection and title V) and the amendments 


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1 made by this Act (other than the amendments made by 

2 title V) shall cease to have effect. 

3 TITLE II—CUSTOMS PROVISIONS 

4 SEC. 201. TARIFF MODIFICATIONS. 

5 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

6 AGREEMENT.— 

7 (1) PROCLAMATION AUTHORITY.—The Presi8 dent may proclaim— 

9 (A) such modifications or continuation of 

10 any duty, 

11 (B) such continuation of duty-free or ex12 cise treatment, or 

13 (C) such additional duties, 

14 as the President determines to be necessary or ap15 propriate to carry out or apply articles 3.3, 3.5, 3.6, 

16 3.26, 3.27, 3.28, and 3.29, and Annex 3.3, of the 

17 Agreement. 

18 (2) EFFECT ON GSP STATUS.—Notwithstanding 

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

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

21 on which the Agreement enters into force, terminate 

22 the designation of Panama as a beneficiary devel23 oping country for purposes of title V of the Trade 

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

25 (3) EFFECT ON CBERA STATUS.— 


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1 (A) IN GENERAL.—Notwithstanding sec2 tion 212(a) of the Caribbean Basin Economic 

3 Recovery Act (19 U.S.C. 2702(a)), the Presi4 dent shall, on the date on which the Agreement 

5 enters into force, terminate the designation of 

6 Panama as a beneficiary country for purposes 

7 of that Act. 

8 (B) EXCEPTION.—Notwithstanding sub9 paragraph (A), Panama shall be considered a 

10 beneficiary country under section 212(a) of the 

11 Caribbean Basin Economic Recovery Act, for 

12 purposes of— 

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

14 771(7)(H) of the Tariff Act of 1930 (19 

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

16 1677(7)(H)); 

17 (ii) the duty-free treatment provided 

18 under paragraph 4 of the General Notes to 

19 the Schedule of the United States to 

20 Annex 3.3 of the Agreement; and 

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

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

24 consultation and layover provisions of section 104, the 

25 President may proclaim— 


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1 (1) such modifications or continuation of any 

2 duty, 

3 (2) such modifications as the United States 

4 may agree to with Panama regarding the staging of 

5 any duty treatment set forth in Annex 3.3 of the 

6 Agreement, 

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

8 treatment, or 

9 (4) such additional duties, 

10 as the President determines to be necessary or appropriate 

11 to maintain the general level of reciprocal and mutually 

12 advantageous concessions with respect to Panama pro13 vided for by the Agreement. 

14 (c) CONVERSION TO AD VALOREM RATES.—For pur15 poses of subsections (a) and (b), with respect to any good 

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

17 States to Annex 3.3 of the Agreement is a specific or com18 pound rate of duty, the President may substitute for the 

19 base rate an ad valorem rate that the President deter20 mines to be equivalent to the base rate. 

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

22 tariff rate quotas set forth in Appendix I to the General 

23 Notes to the Schedule of the United States to Annex 3.3 

24 of the Agreement, the President shall take such action as 

25 may be necessary to ensure that imports of agricultural 


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1 goods do not disrupt the orderly marketing of commodities 

2 in the United States. 

3 SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL4 TURAL GOODS. 

5 (a) DEFINITIONS.—In this section: 

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

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

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

9 duty equal to the lowest of— 

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

11 United States to Annex 3.3 of the Agreement; 

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

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

14 Agreement enters into force, apply to a good 

15 classifiable in the same 8-digit subheading of 

16 the HTS as the safeguard good; or 

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

18 would, at the time the additional duty is im19 posed under subsection (b), apply to a good 

20 classifiable in the same 8-digit subheading of 

21 the HTS as the safeguard good. 

22 (2) SAFEGUARD GOOD.—The term ‘‘safeguard 

23 good’’ means a good— 

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

25 United States to Annex 3.17 of the Agreement; 


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1 (B) that qualifies as an originating good 

2 under section 203; and 

3 (C) for which a claim for preferential tariff 

4 treatment under the Agreement has been made. 

5 (3) SCHEDULE RATE OF DUTY.—The term 

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

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

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

9 Annex 3.3 of the Agreement. 

10 (4) TRIGGER LEVEL.— 

11 (A) IN GENERAL.—The term ‘‘trigger 

12 level’’ means— 

13 (i) in the case of a safeguard good 

14 classified under subheading 0201.10.50, 

15 0201.20.80, 0201.30.80, 0202.10.50, 

16 0202.20.80, or 0202.30.80 of the HTS— 

17 (I) in year 1 of the Agreement, 

18 330 metric tons; and 

19 (II) in year 2 of the Agreement 

20 through year 14 of the Agreement, a 

21 quantity equal to 110 percent of the 

22 trigger level for that safeguard good 

23 for the preceding calendar year; and 

24 (ii) in the case of any other safeguard 

25 good, 115 percent of the quantity that is 


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1 provided for that safeguard good in the 

2 corresponding calendar year in the applica3 ble table contained in Appendix I to the 

4 General Notes to the Schedule of the 

5 United States to Annex 3.3 of the Agree6 ment. 

7 (B) RELATIONSHIP TO TABLE.—For pur8 poses of subparagraph (A)(ii), year 1 in the ap9 plicable table contained in Appendix I to the 

10 General Notes to the Schedule of the United 

11 States to Annex 3.3 of the Agreement cor12 responds to year 1 of the Agreement. 

13 (5) YEAR 1 OF THE AGREEMENT.—The term 

14 ‘‘year 1 of the Agreement’’ means the period begin15 ning on the date, in a calendar year, on which the 

16 Agreement enters into force and ending on Decem17 ber 31 of that calendar year. 

18 (6) YEARS OTHER THAN YEAR 1 OF THE

19 AGREEMENT.—Any reference to a year of the Agree20 ment subsequent to year 1 of the Agreement shall 

21 be deemed to be a reference to the corresponding 

22 calendar year in which the Agreement is in force. 

23 (b) ADDITIONAL DUTIES ON SAFEGUARD GOODS.— 

24 (1) IN GENERAL.—In addition to any duty pro25 claimed under subsection (a) or (b) of section 201, 


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

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

3 safeguard good imported into the United States in 

4 a calendar year if the Secretary determines that, 

5 prior to such importation, the total volume of that 

6 safeguard good that is imported into the United 

7 States in that calendar year exceeds the trigger level 

8 for that good for that calendar year. 

9 (2) CALCULATION OF ADDITIONAL DUTY.—The 

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

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

13 subheading 0201.10.50, 0201.20.80, 

14 0201.30.80, 0202.10.50, 0202.20.80, or 

15 0202.30.80 of the HTS— 

16 (i) in year 1 of the Agreement 

17 through year 6 of the Agreement, an 

18 amount equal to 100 percent of the excess 

19 of the applicable NTR (MFN) rate of duty 

20 over the schedule rate of duty; and 

21 (ii) in year 7 of the Agreement 

22 through year 14 of the Agreement, an 

23 amount equal to 50 percent of the excess 

24 of the applicable NTR (MFN) rate of duty 

25 over the schedule rate of duty; 


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1 (B) in the case of a good classified under 

2 subheading 0406.10.08, 0406.10.88, 

3 0406.20.91, 0406.30.91, 0406.90.97, or 

4 2105.00.20 of the HTS— 

5 (i) in year 1 of the Agreement 

6 through year 11 of the Agreement, an 

7 amount equal to 100 percent of the excess 

8 of the applicable NTR (MFN) rate of duty 

9 over the schedule rate of duty; and 

10 (ii) in year 12 of the Agreement 

11 through year 14 of the Agreement, an 

12 amount equal to 50 percent of the excess 

13 of the applicable NTR (MFN) rate of duty 

14 over the schedule rate of duty; and 

15 (C) in the case of any other safeguard 

16 good— 

17 (i) in year 1 of the Agreement 

18 through year 13 of the Agreement, an 

19 amount equal to 100 percent of the excess 

20 of the applicable NTR (MFN) rate of duty 

21 over the schedule rate of duty; and 

22 (ii) in year 14 of the Agreement 

23 through year 16 of the Agreement, an 

24 amount equal to 50 percent of the excess 


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1 of the applicable NTR (MFN) rate of duty 

2 over the schedule rate of duty. 

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

4 date on which the Secretary of the Treasury first as5 sesses an additional duty in a calendar year on a 

6 good under this subsection, the Secretary shall no7 tify the Government of Panama in writing of such 

8 action and shall provide to that Government data 

9 supporting the assessment of the additional duty. 

10 (c) EXCEPTIONS.—No additional duty shall be as11 sessed on a good under subsection (b) if, at the time of 

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

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

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

15 1974 (19 U.S.C. 2251 et seq.). 

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

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

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

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

20 United States to Annex 3.3 of the Agreement. 

21 SEC. 203. RULES OF ORIGIN. 

22 (a) APPLICATION AND INTERPRETATION.—In this 

23 section: 

24 (1) TARIFF CLASSIFICATION.—The basis for 

25 any tariff classification is the HTS. 


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

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

3 subheading, such reference shall be a reference to a 

4 chapter, heading, or subheading of the HTS. 

5 (3) COST OR VALUE.—Any cost or value re6 ferred to in this section shall be recorded and main7 tained in accordance with the generally accepted ac8 counting principles applicable in the territory of the 

9 country in which the good is produced (whether 

10 Panama or the United States). 

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

12 and for purposes of implementing the preferential tariff 

13 treatment provided for under the Agreement, except as 

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

15 good if— 

16 (1) the good is a good wholly obtained or pro17 duced entirely in the territory of Panama, the 

18 United States, or both; 

19 (2) the good— 

20 (A) is produced entirely in the territory of 

21 Panama, the United States, or both, and— 

22 (i) each of the nonoriginating mate23 rials used in the production of the good 

24 undergoes an applicable change in tariff 


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1 classification specified in Annex 4.1 of the 

2 Agreement; or 

3 (ii) the good otherwise satisfies any 

4 applicable regional value-content or other 

5 requirements specified in Annex 4.1 of the 

6 Agreement; and 

7 (B) satisfies all other applicable require8 ments of this section; or 

9 (3) the good is produced entirely in the terri10 tory of Panama, the United States, or both, exclu11 sively from materials described in paragraph (1) or 

12 (2). 

13 (c) REGIONAL VALUE-CONTENT.— 

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

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

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

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

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

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

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

21 paragraph (3). 

22 (2) BUILD-DOWN METHOD.— 

23 (A) IN GENERAL.—The regional value-con24 tent of a good may be calculated on the basis 

25 of the following build-down method: 


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AV–VNM 

RVC = ————— × 100 

AV 

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

2 (i) RVC.—The term ‘‘RVC’’ means 

3 the regional value-content of the good, ex4 pressed as a percentage. 

5 (ii) AV.—The term ‘‘AV’’ means the 

6 adjusted value of the good. 

7 (iii) VNM.—The term ‘‘VNM’’ means 

8 the value of nonoriginating materials that 

9 are acquired and used by the producer in 

10 the production of the good, but does not 

11 include the value of a material that is self12 produced. 

13 (3) BUILD-UP METHOD.— 

14 (A) IN GENERAL.—The regional value-con15 tent of a good may be calculated on the basis 

16 of the following build-up method: 

VOM 

RVC = ————— × 100 

AV 

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

18 (i) RVC.—The term ‘‘RVC’’ means 

19 the regional value-content of the good, ex20 pressed as a percentage. 

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

22 adjusted value of the good. 


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1 (iii) VOM.—The term ‘‘VOM’’ means 

2 the value of originating materials that are 

3 acquired or self-produced, and used by the 

4 producer in the production of the good. 

5 (4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE

6 GOODS.— 

7 (A) IN GENERAL.—For purposes of sub8 section (b)(2), the regional value-content of an 

9 automotive good referred to in Annex 4.1 of the 

10 Agreement may be calculated by the importer, 

11 exporter, or producer of the good on the basis 

12 of the build-down method described in para13 graph (2), the build-up method described in 

14 paragraph (3), or the following net cost method: 

NC¥VNM 

RVC = ————— × 100 

NC 

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

16 (i) AUTOMOTIVE GOOD.—The term 

17 ‘‘automotive good’’ means a good provided 

18 for in any of subheadings 8407.31 through 

19 8407.34, subheading 8408.20, heading 

20 8409, or any of headings 8701 through 

21 8708. 

22 (ii) RVC.—The term ‘‘RVC’’ means 

23 the regional value-content of the auto24 motive good, expressed as a percentage. 


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

2 net cost of the automotive good. 

3 (iv) VNM.—The term ‘‘VNM’’ means 

4 the value of nonoriginating materials that 

5 are acquired and used by the producer in 

6 the production of the automotive good, but 

7 does not include the value of a material 

8 that is self-produced. 

9 (C) MOTOR VEHICLES.— 

10 (i) BASIS OF CALCULATION.—For 

11 purposes of determining the regional value12 content under subparagraph (A) for an 

13 automotive good that is a motor vehicle 

14 provided for in any of headings 8701 

15 through 8705, an importer, exporter, or 

16 producer may average the amounts cal17 culated under the net cost formula con18 tained in subparagraph (A), over the pro19 ducer’s fiscal year— 

20 (I) with respect to all motor vehi21 cles in any one of the categories de22 scribed in clause (ii); or 

23 (II) with respect to all motor ve24 hicles in any such category that are 


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1 exported to the territory of Panama 

2 or the United States. 

3 (ii) CATEGORIES.—A category is de4 scribed in this clause if it— 

5 (I) is the same model line of 

6 motor vehicles, is in the same class of 

7 motor vehicles, and is produced in the 

8 same plant in the territory of Panama 

9 or the United States, as the good de10 scribed in clause (i) for which regional 

11 value-content is being calculated; 

12 (II) is the same class of motor 

13 vehicles, and is produced in the same 

14 plant in the territory of Panama or 

15 the United States, as the good de16 scribed in clause (i) for which regional 

17 value-content is being calculated; or 

18 (III) is the same model line of 

19 motor vehicles produced in the terri20 tory of Panama or the United States 

21 as the good described in clause (i) for 

22 which regional value-content is being 

23 calculated. 

24 (D) OTHER AUTOMOTIVE GOODS.—For 

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1 tent under subparagraph (A) for automotive 

2 materials provided for in any of subheadings 

3 8407.31 through 8407.34, in subheading 

4 8408.20, or in heading 8409, 8706, 8707, or 

5 8708, that are produced in the same plant, an 

6 importer, exporter, or producer may— 

7 (i) average the amounts calculated 

8 under the net cost formula contained in 

9 subparagraph (A) over— 

10 (I) the fiscal year of the motor 

11 vehicle producer to whom the auto12 motive goods are sold, 

13 (II) any quarter or month, or 

14 (III) the fiscal year of the pro15 ducer of such goods, 

16 if the goods were produced during the fis17 cal year, quarter, or month that is the 

18 basis for the calculation; 

19 (ii) determine the average referred to 

20 in clause (i) separately for such goods sold 

21 to 1 or more motor vehicle producers; or 

22 (iii) make a separate determination 

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

24 are exported to the territory of Panama or 

25 the United States. 


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1 (E) CALCULATING NET COST.—The im2 porter, exporter, or producer of an automotive 

3 good shall, consistent with the provisions re4 garding allocation of costs provided for in gen5 erally accepted accounting principles, determine 

6 the net cost of the automotive good under sub7 paragraph (B) by— 

8 (i) calculating the total cost incurred 

9 with respect to all goods produced by the 

10 producer of the automotive good, sub11 tracting any sales promotion, marketing, 

12 and after-sales service costs, royalties, 

13 shipping and packing costs, and nonallow14 able interest costs that are included in the 

15 total cost of all such goods, and then rea16 sonably allocating the resulting net cost of 

17 those goods to the automotive good; 

18 (ii) calculating the total cost incurred 

19 with respect to all goods produced by that 

20 producer, reasonably allocating the total 

21 cost to the automotive good, and then sub22 tracting any sales promotion, marketing, 

23 and after-sales service costs, royalties, 

24 shipping and packing costs, and nonallow25 able interest costs that are included in the 


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1 portion of the total cost allocated to the 

2 automotive good; or 

3 (iii) reasonably allocating each cost 

4 that forms part of the total cost incurred 

5 with respect to the automotive good so that 

6 the aggregate of these costs does not in7 clude any sales promotion, marketing, and 

8 after-sales service costs, royalties, shipping 

9 and packing costs, or nonallowable interest 

10 costs. 

11 (d) VALUE OF MATERIALS.— 

12 (1) IN GENERAL.—For the purpose of calcu13 lating the regional value-content of a good under 

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

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

16 material is— 

17 (A) in the case of a material that is im18 ported by the producer of the good, the ad19 justed value of the material; 

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

21 the territory in which the good is produced, the 

22 value, determined in accordance with Articles 1 

23 through 8, Article 15, and the corresponding in24 terpretive notes, of the Agreement on Imple25 mentation of Article VII of the General AgreeVerDate Mar 15 2010 06:07 Oct 04, 2011 Jkt 019002 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H3079.IH H3079

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1 ment on Tariffs and Trade 1994 referred to in 

2 section 101(d)(8) of the Uruguay Round Agree3 ments Act (19 U.S.C. 3511(d)(8)), as set forth 

4 in regulations promulgated by the Secretary of 

5 the Treasury providing for the application of 

6 such Articles in the absence of an importation 

7 by the producer; or 

8 (C) in the case of a material that is self9 produced, the sum of— 

10 (i) all expenses incurred in the pro11 duction of the material, including general 

12 expenses; and 

13 (ii) an amount for profit equivalent to 

14 the profit added in the normal course of 

15 trade. 

16 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

17 MATERIALS.— 

18 (A) ORIGINATING MATERIAL.—The fol19 lowing expenses, if not included in the value of 

20 an originating material calculated under para21 graph (1), may be added to the value of the 

22 originating material: 

23 (i) The costs of freight, insurance, 

24 packing, and all other costs incurred in 

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1 tween the territory of Panama, the United 

2 States, or both, to the location of the pro3 ducer. 

4 (ii) Duties, taxes, and customs broker5 age fees on the material paid in the terri6 tory of Panama, the United States, or 

7 both, other than duties or taxes that are 

8 waived, refunded, refundable, or otherwise 

9 recoverable, including credit against duty 

10 or tax paid or payable. 

11 (iii) The cost of waste and spoilage re12 sulting from the use of the material in the 

13 production of the good, less the value of 

14 renewable scrap or byproducts. 

15 (B) NONORIGINATING MATERIAL.—The 

16 following expenses, if included in the value of a 

17 nonoriginating material calculated under para18 graph (1), may be deducted from the value of 

19 the nonoriginating material: 

20 (i) The costs of freight, insurance, 

21 packing, and all other costs incurred in 

22 transporting the material within or be23 tween the territory of Panama, the United 

24 States, or both, to the location of the pro25 ducer. 


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1 (ii) Duties, taxes, and customs broker2 age fees on the material paid in the terri3 tory of Panama, the United States, or 

4 both, other than duties or taxes that are 

5 waived, refunded, refundable, or otherwise 

6 recoverable, including credit against duty 

7 or tax paid or payable. 

8 (iii) The cost of waste and spoilage re9 sulting from the use of the material in the 

10 production of the good, less the value of 

11 renewable scrap or byproducts. 

12 (iv) The cost of originating materials 

13 used in the production of the nonorigi14 nating material in the territory of Panama, 

15 the United States, or both. 

16 (e) ACCUMULATION.— 

17 (1) ORIGINATING MATERIALS USED IN PRODUC18 TION OF GOODS OF THE OTHER COUNTRY.—Origi19 nating materials from the territory of Panama or 

20 the United States that are used in the production of 

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

22 considered to originate in the territory of such other 

23 country. 

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

25 produced in the territory of Panama, the United 


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1 States, or both, by 1 or more producers, is an origi2 nating good if the good satisfies the requirements of 

3 subsection (b) and all other applicable requirements 

4 of this section. 

5 (f) DE MINIMIS AMOUNTS OF NONORIGINATING MA6 TERIALS.— 

7 (1) IN GENERAL.—Except as provided in para8 graphs (2) and (3), a good that does not undergo a 

9 change in tariff classification pursuant to Annex 4.1 

10 of the Agreement is an originating good if— 

11 (A) the value of all nonoriginating mate12 rials that— 

13 (i) are used in the production of the 

14 good, and 

15 (ii) do not undergo the applicable 

16 change in tariff classification (set forth in 

17 Annex 4.1 of the Agreement), 

18 does not exceed 10 percent of the adjusted 

19 value of the good; 

20 (B) the good meets all other applicable re21 quirements of this section; and 

22 (C) the value of such nonoriginating mate23 rials is included in the value of nonoriginating 

24 materials for any applicable regional value-con25 tent requirement for the good. 


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

2 apply to the following: 

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

8 good provided for in chapter 4. 

9 (B) A nonoriginating material provided for 

10 in chapter 4, or a nonoriginating dairy prepara11 tion containing over 10 percent by weight of 

12 milk solids provided for in subheading 1901.90, 

13 that is used in the production of the following 

14 goods: 

15 (i) Infant preparations containing 

16 over 10 percent by weight of milk solids 

17 provided for in subheading 1901.10. 

18 (ii) Mixes and doughs, containing over 

19 25 percent by weight of butterfat, not put 

20 up for retail sale, provided for in sub21 heading 1901.20. 

22 (iii) Dairy preparations containing 

23 over 10 percent by weight of milk solids 

24 provided for in subheading 1901.90 or 

25 2106.90. 


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1 (iv) Goods provided for in heading 

2 2105. 

3 (v) Beverages containing milk pro4 vided for in subheading 2202.90. 

5 (vi) Animal feeds containing over 10 

6 percent by weight of milk solids provided 

7 for in subheading 2309.90. 

8 (C) A nonoriginating material provided for 

9 in heading 0805, or any of subheadings 

10 2009.11 through 2009.39, that is used in the 

11 production of a good provided for in any of sub12 headings 2009.11 through 2009.39, or in fruit 

13 or vegetable juice of any single fruit or vege14 table, fortified with minerals or vitamins, con15 centrated or unconcentrated, provided for in 

16 subheading 2106.90 or 2202.90. 

17 (D) A nonoriginating material provided for 

18 in heading 0901 or 2101 that is used in the 

19 production of a good provided for in heading 

20 0901 or 2101. 

21 (E) A nonoriginating material provided for 

22 in heading 1006 that is used in the production 

23 of a good provided for in heading 1102 or 1103 

24 or subheading 1904.90. 


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1 (F) A nonoriginating material provided for 

2 in chapter 15 that is used in the production of 

3 a good provided for in chapter 15. 

4 (G) A nonoriginating material provided for 

5 in heading 1701 that is used in the production 

6 of a good provided for in any of headings 1701 

7 through 1703. 

8 (H) A nonoriginating material provided for 

9 in chapter 17 that is used in the production of 

10 a good provided for in subheading 1806.10. 

11 (I) Except as provided in subparagraphs 

12 (A) through (H) and Annex 4.1 of the Agree13 ment, a nonoriginating material used in the 

14 production of a good provided for in any of 

15 chapters 1 through 24, unless the nonorigi16 nating material is provided for in a different 

17 subheading than the good for which origin is 

18 being determined under this section. 

19 (3) TEXTILE OR APPAREL GOODS.— 

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

21 subparagraph (B), a textile or apparel good 

22 that is not an originating good because certain 

23 fibers or yarns used in the production of the 

24 component of the good that determines the tar25 iff classification of the good do not undergo an 


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1 applicable change in tariff classification, set 

2 forth in Annex 4.1 of the Agreement, shall be 

3 considered to be an originating good if— 

4 (i) the total weight of all such fibers 

5 or yarns in that component is not more 

6 than 10 percent of the total weight of that 

7 component; or 

8 (ii) the yarns are those described in 

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

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

11 3203(b)(3)(B)(vi)(IV)) (as in effect on 

12 February 12, 2011). 

13 (B) CERTAIN TEXTILE OR APPAREL

14 GOODS.—A textile or apparel good containing 

15 elastomeric yarns in the component of the good 

16 that determines the tariff classification of the 

17 good shall be considered to be an originating 

18 good only if such yarns are wholly formed and 

19 finished in the territory of Panama, the United 

20 States, or both. 

21 (C) FABRIC, YARN, OR FIBER.—For pur22 poses of this paragraph, in the case of a good 

23 that is a fabric, yarn, or fiber, the term ‘‘com24 ponent of the good that determines the tariff 


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1 classification of the good’’ means all of the fi2 bers in the good. 

3 (g) FUNGIBLE GOODS AND MATERIALS.— 

4 (1) IN GENERAL.— 

5 (A) CLAIM FOR PREFERENTIAL TARIFF

6 TREATMENT.—A person claiming that a fun7 gible good or fungible material is an originating 

8 good may base the claim either on the physical 

9 segregation of the fungible good or fungible ma10 terial or by using an inventory management 

11 method with respect to the fungible good or 

12 fungible material. 

13 (B) INVENTORY MANAGEMENT METHOD.— 

14 In this subsection, the term ‘‘inventory manage15 ment method’’ means— 

16 (i) averaging; 

17 (ii) ‘‘last-in, first-out’’; 

18 (iii) ‘‘first-in, first-out’’; or 

19 (iv) any other method— 

20 (I) recognized in the generally 

21 accepted accounting principles of the 

22 country in which the production is 

23 performed (whether Panama or the 

24 United States); or 


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1 (II) otherwise accepted by that 

2 country. 

3 (2) ELECTION OF INVENTORY METHOD.—A 

4 person selecting an inventory management method 

5 under paragraph (1) for a particular fungible good 

6 or fungible material shall continue to use that meth7 od for that fungible good or fungible material 

8 throughout the fiscal year of such person. 

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

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

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

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

13 accessories, spare parts, or tools shall— 

14 (A) be treated as originating goods if the 

15 good is an originating good; and 

16 (B) be disregarded in determining whether 

17 all the nonoriginating materials used in the pro18 duction of the good undergo the applicable 

19 change in tariff classification set forth in Annex 

20 4.1 of the Agreement. 

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

22 only if— 

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

24 are classified with and not invoiced separately 

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1 cessories, spare parts, or tools are specified or 

2 are separately identified in the invoice for the 

3 good; and 

4 (B) the quantities and value of the acces5 sories, spare parts, or tools are customary for 

6 the good. 

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

8 subject to a regional value-content requirement, the 

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

10 be taken into account as originating or nonorigi11 nating materials, as the case may be, in calculating 

12 the regional value-content of the good. 

13 (i) PACKAGING MATERIALS AND CONTAINERS FOR

14 RETAIL SALE.—Packaging materials and containers in 

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

16 the good, shall be disregarded in determining whether all 

17 the nonoriginating materials used in the production of the 

18 good undergo the applicable change in tariff classification 

19 set forth in Annex 4.1 of the Agreement, and, if the good 

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

21 value of such packaging materials and containers shall be 

22 taken into account as originating or nonoriginating mate23 rials, as the case may be, in calculating the regional value24 content of the good. 


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1 (j) PACKING MATERIALS AND CONTAINERS FOR

2 SHIPMENT.—Packing materials and containers for ship3 ment shall be disregarded in determining whether a good 

4 is an originating good. 

5 (k) INDIRECT MATERIALS.—An indirect material 

6 shall be treated as an originating material without regard 

7 to where it is produced. 

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

9 undergone production necessary to qualify as an origi10 nating good under subsection (b) shall not be considered 

11 to be an originating good if, subsequent to that produc12 tion, the good— 

13 (1) undergoes further production or any other 

14 operation outside the territory of Panama or the 

15 United States, other than unloading, reloading, or 

16 any other operation necessary to preserve the good 

17 in good condition or to transport the good to the ter18 ritory of Panama or the United States; or 

19 (2) does not remain under the control of cus20 toms authorities in the territory of a country other 

21 than Panama or the United States. 

22 (m) GOODS CLASSIFIABLE AS GOODS PUT UP IN

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

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

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1 pretation 3 of the HTS shall not be considered to be origi2 nating goods unless— 

3 (1) each of the goods in the set is an origi4 nating good; or 

5 (2) the total value of the nonoriginating goods 

6 in the set does not exceed— 

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

8 10 percent of the adjusted value of the set; or 

9 (B) in the case of goods, other than textile 

10 or apparel goods, 15 percent of the adjusted 

11 value of the set. 

12 (n) DEFINITIONS.—In this section: 

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

14 value’’ means the value determined in accordance 

15 with Articles 1 through 8, Article 15, and the cor16 responding interpretive notes, of the Agreement on 

17 Implementation of Article VII of the General Agree18 ment on Tariffs and Trade 1994 referred to in sec19 tion 101(d)(8) of the Uruguay Round Agreements 

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

21 to exclude any costs, charges, or expenses incurred 

22 for transportation, insurance, and related services 

23 incident to the international shipment of the mer24 chandise from the country of exportation to the 

25 place of importation. 


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

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

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

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

7 or motor vehicles for the transport of 16 or 

8 more persons provided for in subheading 

9 8702.10 or 8702.90. 

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

12 8701.30 through 8701.90. 

13 (C) Motor vehicles for the transport of 15 

14 or fewer persons provided for in subheading 

15 8702.10 or 8702.90, or motor vehicles provided 

16 for in subheading 8704.21 or 8704.31. 

17 (D) Motor vehicles provided for in any of 

18 subheadings 8703.21 through 8703.90. 

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

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

24 which are essentially identical to such other good or 

25 material. 


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

3 principles’’— 

4 (A) means the recognized consensus or 

5 substantial authoritative support given in the 

6 territory of Panama or the United States, as 

7 the case may be, with respect to the recording 

8 of revenues, expenses, costs, assets, and liabil9 ities, the disclosure of information, and the 

10 preparation of financial statements; and 

11 (B) may encompass broad guidelines for 

12 general application as well as detailed stand13 ards, practices, and procedures. 

14 (5) GOOD WHOLLY OBTAINED OR PRODUCED

15 ENTIRELY IN THE TERRITORY OF PANAMA, THE

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

17 obtained or produced entirely in the territory of 

18 Panama, the United States, or both’’ means any of 

19 the following: 

20 (A) Plants and plant products harvested or 

21 gathered in the territory of Panama, the United 

22 States, or both. 

23 (B) Live animals born and raised in the 

24 territory of Panama, the United States, or 

25 both. 


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1 (C) Goods obtained in the territory of Pan2 ama, the United States, or both from live ani3 mals. 

4 (D) Goods obtained from hunting, trap5 ping, fishing, or aquaculture conducted in the 

6 territory of Panama, the United States, or 

7 both. 

8 (E) Minerals and other natural resources 

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

10 that are extracted or taken from the territory 

11 of Panama, the United States, or both. 

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

13 taken from the sea, seabed, or subsoil outside 

14 the territory of Panama or the United States 

15 by— 

16 (i) a vessel that is registered or re17 corded with Panama and flying the flag of 

18 Panama; or 

19 (ii) a vessel that is documented under 

20 the laws of the United States. 

21 (G) Goods produced on board a factory 

22 ship from goods referred to in subparagraph 

23 (F), if such factory ship— 

24 (i) is registered or recorded with Pan25 ama and flies the flag of Panama; or 


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1 (ii) is a vessel that is documented 

2 under the laws of the United States. 

3 (H)(i) Goods taken by Panama or a person 

4 of Panama from the seabed or subsoil outside 

5 the territorial waters of Panama, if Panama 

6 has rights to exploit such seabed or subsoil. 

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

8 person of the United States from the seabed or 

9 subsoil outside the territorial waters of the 

10 United States, if the United States has rights 

11 to exploit such seabed or subsoil. 

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

13 goods are obtained by Panama or the United 

14 States or a person of Panama or the United 

15 States and not processed in the territory of a 

16 country other than Panama or the United 

17 States. 

18 (J) Waste and scrap derived from— 

19 (i) manufacturing or processing oper20 ations in the territory of Panama, the 

21 United States, or both; or 

22 (ii) used goods collected in the terri23 tory of Panama, the United States, or 

24 both, if such goods are fit only for the re25 covery of raw materials. 


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1 (K) Recovered goods derived in the terri2 tory of Panama, the United States, or both 

3 from used goods, and used in the territory of 

4 Panama, the United States, or both, in the pro5 duction of remanufactured goods. 

6 (L) Goods, at any stage of production, pro7 duced in the territory of Panama, the United 

8 States, or both, exclusively from— 

9 (i) goods referred to in any of sub10 paragraphs (A) through (J), or 

11 (ii) the derivatives of goods referred 

12 to in clause (i). 

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

14 goods’’ means goods that are the same in all re15 spects relevant to the rule of origin that qualifies the 

16 goods as originating goods. 

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

18 material’’ means a good used in the production, test19 ing, or inspection of another good but not physically 

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

21 the maintenance of buildings or the operation of 

22 equipment associated with the production of another 

23 good, including— 

24 (A) fuel and energy; 

25 (B) tools, dies, and molds; 


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1 (C) spare parts and materials used in the 

2 maintenance of equipment or buildings; 

3 (D) lubricants, greases, compounding ma4 terials, and other materials used in production 

5 or used to operate equipment or buildings; 

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

7 safety equipment, and supplies; 

8 (F) equipment, devices, and supplies used 

9 for testing or inspecting the good; 

10 (G) catalysts and solvents; and 

11 (H) any other good that is not incor12 porated into the other good but the use of 

13 which in the production of the other good can 

14 reasonably be demonstrated to be a part of that 

15 production. 

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

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

18 including a part or an ingredient. 

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

20 term ‘‘material that is self-produced’’ means an orig21 inating material that is produced by a producer of 

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

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

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


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1 of motor vehicles having the same platform or model 

2 name. 

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

4 total cost minus sales promotion, marketing, and 

5 after-sales service costs, royalties, shipping and 

6 packing costs, and nonallowable interest costs that 

7 are included in the total cost. 

8 (12) NONALLOWABLE INTEREST COSTS.—The 

9 term ‘‘nonallowable interest costs’’ means interest 

10 costs incurred by a producer that exceed 700 basis 

11 points above the applicable official interest rate for 

12 comparable maturities of the country in which the 

13 producer is located. 

14 (13) NONORIGINATING GOOD OR NONORIGI15 NATING MATERIAL.—The term ‘‘nonoriginating 

16 good’’ or ‘‘nonoriginating material’’ means a good or 

17 material, as the case may be, that does not qualify 

18 as originating under this section. 

19 (14) PACKING MATERIALS AND CONTAINERS

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

21 containers for shipment’’ means goods used to pro22 tect another good during its transportation and does 

23 not include the packaging materials and containers 

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


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1 (15) PREFERENTIAL TARIFF TREATMENT.— 

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

3 customs duty rate, and the treatment under article 

4 3.10.4 of the Agreement, that are applicable to an 

5 originating good pursuant to the Agreement. 

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

7 a person who engages in the production of a good 

8 in the territory of Panama or the United States. 

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

10 means growing, mining, harvesting, fishing, raising, 

11 trapping, hunting, manufacturing, processing, as12 sembling, or disassembling a good. 

13 (18) REASONABLY ALLOCATE.—The term ‘‘rea14 sonably allocate’’ means to apportion in a manner 

15 that would be appropriate under generally accepted 

16 accounting principles. 

17 (19) RECOVERED GOODS.—The term ‘‘recov18 ered goods’’ means materials in the form of indi19 vidual parts that are the result of— 

20 (A) the disassembly of used goods into in21 dividual parts; and 

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

23 other processing that is necessary for improve24 ment to sound working condition of such indi25 vidual parts. 


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1 (20) REMANUFACTURED GOOD.—The term ‘‘re2 manufactured good’’ means a good that is classified 

3 under chapter 84, 85, 87, or 90, or heading 9402, 

4 other than a good classified under heading 8418 or 

5 8516, and that— 

6 (A) is entirely or partially comprised of re7 covered goods; and 

8 (B) has a similar life expectancy and en9 joys a factory warranty similar to such a good 

10 that is new. 

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

12 means all product costs, period costs, and other 

13 costs for a good incurred in the territory of Panama, 

14 the United States, or both. 

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

16 or consumed in the production of goods. 

17 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

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

19 to proclaim, as part of the HTS— 

20 (A) the provisions set forth in Annex 4.1 

21 of the Agreement; and 

22 (B) any additional subordinate category 

23 that is necessary to carry out this title con24 sistent with the Agreement. 


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1 (2) FABRICS, YARNS, OR FIBERS NOT AVAIL2 ABLE IN COMMERCIAL QUANTITIES IN THE UNITED

3 STATES.—The President is authorized to proclaim 

4 that a fabric, yarn, or fiber is added to the list in 

5 Annex 3.25 of the Agreement in an unrestricted 

6 quantity, as provided in article 3.25.4(e) of the 

7 Agreement. 

8 (3) MODIFICATIONS.— 

9 (A) IN GENERAL.—Subject to the consulta10 tion and layover provisions of section 104, the 

11 President may proclaim modifications to the 

12 provisions proclaimed under the authority of 

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

14 chapters 50 through 63 (as included in Annex 

15 4.1 of the Agreement). 

16 (B) ADDITIONAL PROCLAMATIONS.—Not17 withstanding subparagraph (A), and subject to 

18 the consultation and layover provisions of sec19 tion 104, the President may proclaim before the 

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

21 on which the Agreement enters into force, 

22 modifications to correct any typographical, cler23 ical, or other nonsubstantive technical error re24 garding the provisions of chapters 50 through 


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1 63 (as included in Annex 4.1 of the Agree2 ment). 

3 (4) FABRICS, YARNS, OR FIBERS NOT AVAIL4 ABLE IN COMMERCIAL QUANTITIES IN PANAMA AND

5 THE UNITED STATES.— 

6 (A) IN GENERAL.—Notwithstanding para7 graph (3)(A), the list of fabrics, yarns, and fi8 bers set forth in Annex 3.25 of the Agreement 

9 may be modified as provided for in this para10 graph. 

11 (B) DEFINITIONS.—In this paragraph: 

12 (i) INTERESTED ENTITY.—The term 

13 ‘‘interested entity’’ means the Government 

14 of Panama, a potential or actual purchaser 

15 of a textile or apparel good, or a potential 

16 or actual supplier of a textile or apparel 

17 good. 

18 (ii) DAY; DAYS.—All references to 

19 ‘‘day’’ and ‘‘days’’ exclude Saturdays, Sun20 days, and legal holidays observed by the 

21 Government of the United States. 

22 (C) REQUESTS TO ADD FABRICS, YARNS, 

23 OR FIBERS.— 

24 (i) IN GENERAL.—An interested entity 

25 may request the President to determine 


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1 that a fabric, yarn, or fiber is not available 

2 in commercial quantities in a timely man3 ner in Panama and the United States and 

4 to add that fabric, yarn, or fiber to the list 

5 in Annex 3.25 of the Agreement in a re6 stricted or unrestricted quantity. 

7 (ii) DETERMINATIONS.—After receiv8 ing a request under clause (i), the Presi9 dent may determine whether— 

10 (I) the fabric, yarn, or fiber is 

11 available in commercial quantities in a 

12 timely manner in Panama or the 

13 United States; or 

14 (II) any interested entity objects 

15 to the request. 

16 (iii) PROCLAMATION AUTHORITY.— 

17 The President may, within the time peri18 ods specified in clause (iv), proclaim that 

19 the fabric, yarn, or fiber that is the subject 

20 of the request is added to the list in Annex 

21 3.25 of the Agreement in an unrestricted 

22 quantity, or in any restricted quantity that 

23 the President may establish, if the Presi24 dent has determined under clause (ii) 

25 that— 


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1 (I) the fabric, yarn, or fiber is 

2 not available in commercial quantities 

3 in a timely manner in Panama and 

4 the United States; or 

5 (II) no interested entity has ob6 jected to the request. 

7 (iv) TIME PERIODS.—The time peri8 ods within which the President may issue 

9 a proclamation under clause (iii) are— 

10 (I) not later than 30 days after 

11 the date on which a request is sub12 mitted under clause (i); or 

13 (II) not later than 44 days after 

14 the request is submitted, if the Presi15 dent determines, within 30 days after 

16 the date on which the request is sub17 mitted, that the President does not 

18 have sufficient information to make a 

19 determination under clause (ii). 

20 (v) EFFECTIVE DATE.—Notwith21 standing section 103(a)(2), a proclamation 

22 made under clause (iii) shall take effect on 

23 the date on which the text of the proclama24 tion is published in the Federal Register. 


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1 (vi) ELIMINATION OF RESTRICTION.— 

2 Not later than 6 months after proclaiming 

3 under clause (iii) that a fabric, yarn, or 

4 fiber is added to the list in Annex 3.25 of 

5 the Agreement in a restricted quantity, the 

6 President may eliminate the restriction if 

7 the President determines that the fabric, 

8 yarn, or fiber is not available in commer9 cial quantities in a timely manner in Pan10 ama and the United States. 

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

12 after an interested entity submits a request 

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

14 not, within the applicable time period specified 

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

16 under subparagraph (C)(ii) regarding the re17 quest, the fabric, yarn, or fiber that is the sub18 ject of the request shall be considered to be 

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

20 Annex 3.25 of the Agreement beginning— 

21 (i) 45 days after the date on which 

22 the request is submitted; or 

23 (ii) 60 days after the date on which 

24 the request is submitted, if the President 


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1 made a determination under subparagraph 

2 (C)(iv)(II). 

3 (E) REQUESTS TO RESTRICT OR REMOVE

4 FABRICS, YARNS, OR FIBERS.— 

5 (i) IN GENERAL.—Subject to clause 

6 (ii), an interested entity may request the 

7 President to restrict the quantity of, or re8 move from the list in Annex 3.25 of the 

9 Agreement, any fabric, yarn, or fiber— 

10 (I) that has been added to that 

11 list in an unrestricted quantity pursu12 ant to paragraph (2) or subparagraph 

13 (C)(iii) or (D) of this paragraph; or 

14 (II) with respect to which the 

15 President has eliminated a restriction 

16 under subparagraph (C)(vi). 

17 (ii) TIME PERIOD FOR SUBMISSION.— 

18 An interested entity may submit a request 

19 under clause (i) at any time beginning on 

20 the date that is 6 months after the date of 

21 the action described in subclause (I) or (II) 

22 of that clause. 

23 (iii) PROCLAMATION AUTHORITY.— 

24 Not later than 30 days after the date on 

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1 mitted, the President may proclaim an ac2 tion provided for under clause (i) if the 

3 President determines that the fabric, yarn, 

4 or fiber that is the subject of the request 

5 is available in commercial quantities in a 

6 timely manner in Panama or the United 

7 States. 

8 (iv) EFFECTIVE DATE.—A proclama9 tion issued under clause (iii) may not take 

10 effect earlier than the date that is 6 

11 months after the date on which the text of 

12 the proclamation is published in the Fed13 eral Register. 

14 (F) PROCEDURES.—The President shall 

15 establish procedures— 

16 (i) governing the submission of a re17 quest under subparagraphs (C) and (E); 

18 and 

19 (ii) providing an opportunity for inter20 ested entities to submit comments and sup21 porting evidence before the President 

22 makes a determination under subpara23 graph (C) (ii) or (vi) or (E)(iii). 


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1 SEC. 204. CUSTOMS USER FEES. 

2 Section 13031(b) of the Consolidated Omnibus Budg3 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

4 amended by adding after paragraph (20) the following: 

5 ‘‘(21) No fee may be charged under subsection (a)(9) 

6 or (10) with respect to goods that qualify as originating 

7 goods under section 203 of the United States–Panama 

8 Trade Promotion Agreement Implementation Act. Any 

9 service for which an exemption from such fee is provided 

10 by reason of this paragraph may not be funded with 

11 money contained in the Customs User Fee Account.’’. 

12 SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; 

13 FALSE CERTIFICATIONS OF ORIGIN; DENIAL 

14 OF PREFERENTIAL TARIFF TREATMENT. 

15 (a) DISCLOSURE OF INCORRECT INFORMATION.— 

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

17 is amended— 

18 (1) in subsection (c)— 

19 (A) by redesignating paragraph (13) as 

20 paragraph (14); and 

21 (B) by inserting after paragraph (12) the 

22 following new paragraph: 

23 ‘‘(13) PRIOR DISCLOSURE REGARDING CLAIMS

24 UNDER THE UNITED STATES–PANAMA TRADE PRO25 MOTION AGREEMENT.—An importer shall not be 

26 subject to penalties under subsection (a) for making 


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1 an incorrect claim that a good qualifies as an origi2 nating good under section 203 of the United States– 

3 Panama Trade Promotion Agreement Implementa4 tion Act if the importer, in accordance with regula5 tions issued by the Secretary of the Treasury, 

6 promptly and voluntarily makes a corrected declara7 tion and pays any duties owing with respect to that 

8 good.’’; and 

9 (2) by adding at the end the following new sub10 section: 

11 ‘‘(l) FALSE CERTIFICATIONS OF ORIGIN UNDER THE

12 UNITED STATES–PANAMA TRADE PROMOTION AGREE13 MENT.— 

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

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

16 fraud, gross negligence, or negligence, in a Panama 

17 TPA certification of origin (as defined in section 

18 508 of this Act) that a good exported from the 

19 United States qualifies as an originating good under 

20 the rules of origin provided for in section 203 of the 

21 United States–Panama Trade Promotion Agreement 

22 Implementation Act. The procedures and penalties 

23 of this section that apply to a violation of subsection 

24 (a) also apply to a violation of this subsection. 


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1 ‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF

2 INCORRECT INFORMATION.—No penalty shall be im3 posed under this subsection if, promptly after an ex4 porter or producer that issued a Panama TPA cer5 tification of origin has reason to believe that such 

6 certification contains or is based on incorrect infor7 mation, the exporter or producer voluntarily provides 

8 written notice of such incorrect information to every 

9 person to whom the certification was issued. 

10 ‘‘(3) EXCEPTION.—A person shall not be con11 sidered to have violated paragraph (1) if— 

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

13 time it was provided in a Panama TPA certifi14 cation of origin but was later rendered incorrect 

15 due to a change in circumstances; and 

16 ‘‘(B) the person promptly and voluntarily 

17 provides written notice of the change in cir18 cumstances to all persons to whom the person 

19 provided the certification.’’. 

20 (b) DENIAL OF PREFERENTIAL TARIFF TREAT21 MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C. 

22 1514) is amended by adding at the end the following new 

23 subsection: 

24 ‘‘(l) DENIAL OF PREFERENTIAL TARIFF TREATMENT

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1 MOTION AGREEMENT.—If U.S. Customs and Border Pro2 tection or U.S. Immigration and Customs Enforcement of 

3 the Department of Homeland Security finds indications 

4 of a pattern of conduct by an importer, exporter, or pro5 ducer of false or unsupported representations that goods 

6 qualify under the rules of origin provided for in section 

7 203 of the United States–Panama Trade Promotion 

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

9 Protection, in accordance with regulations issued by the 

10 Secretary of the Treasury, may suspend preferential tariff 

11 treatment under the United States–Panama Trade Pro12 motion Agreement to entries of identical goods covered by 

13 subsequent representations by that importer, exporter, or 

14 producer until U.S. Customs and Border Protection deter15 mines that representations of that person are in con16 formity with such section 203.’’. 

17 SEC. 206. RELIQUIDATION OF ENTRIES. 

18 Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 

19 1520(d)) is amended in the matter preceding paragraph 

20 (1)— 

21 (1) by striking ‘‘or’’; and 

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

23 section 203 of the United States–Panama Trade 

24 Promotion Agreement Implementation Act for 

25 which’’. 


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1 SEC. 207. RECORDKEEPING REQUIREMENTS. 

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

3 1508) is amended— 

4 (1) by redesignating subsection (k) as sub5 section (l); 

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

8 ‘‘(k) CERTIFICATIONS OF ORIGIN FOR GOODS EX9 PORTED UNDER THE UNITED STATES–PANAMA TRADE

10 PROMOTION AGREEMENT.— 

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

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

14 documents’ means, with respect to an exported 

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

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

19 and payment for, the good; 

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

21 and payment for, all materials, including 

22 indirect materials, used in the production 

23 of the good; and 

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

25 the form in which it was exported. 


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1 ‘‘(B) PANAMA TPA CERTIFICATION OF ORI2 GIN.—The term ‘Panama TPA certification of 

3 origin’ means the certification established under 

4 article 4.15 of the United States–Panama 

5 Trade Promotion Agreement that a good quali6 fies as an originating good under such Agree7 ment. 

8 ‘‘(2) EXPORTS TO PANAMA.—Any person who 

9 completes and issues a Panama TPA certification of 

10 origin for a good exported from the United States 

11 shall make, keep, and, pursuant to rules and regula12 tions promulgated by the Secretary of the Treasury, 

13 render for examination and inspection all records 

14 and supporting documents related to the origin of 

15 the good (including the certification or copies there16 of). 

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

18 issues a Panama TPA certification of origin shall 

19 keep the records and supporting documents relating 

20 to that certification of origin for a period of at least 

21 5 years after the date on which the certification is 

22 issued.’’; and 

23 (3) in subsection (l), as so redesignated, by 

24 striking ‘‘(i), or (j)’’ and inserting ‘‘(i), (j), or (k)’’. 


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1 SEC. 208. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

2 OR APPAREL GOODS. 

3 (a) ACTION DURING VERIFICATION.— 

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

5 Treasury requests the Government of Panama to 

6 conduct a verification pursuant to article 3.21 of the 

7 Agreement for purposes of making a determination 

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

9 Secretary to take appropriate action described in 

10 subsection (b) while the verification is being con11 ducted. 

12 (2) DETERMINATION.—A determination under 

13 this paragraph is a determination of the Secretary 

14 that— 

15 (A) an enterprise in Panama is complying 

16 with applicable customs laws, regulations, and 

17 procedures regarding trade in textile or apparel 

18 goods, or 

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

20 exported or produced by such enterprise— 

21 (i) qualifies as an originating good 

22 under section 203, or 

23 (ii) is a good of Panama, 

24 is accurate. 

25 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

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


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1 (1) suspension of preferential tariff treatment 

2 under the Agreement with respect to— 

3 (A) any textile or apparel good exported or 

4 produced by the person that is the subject of a 

5 verification under subsection (a)(1) regarding 

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

7 the Secretary of the Treasury determines that 

8 there is insufficient information to support any 

9 claim for preferential tariff treatment that has 

10 been made with respect to any such good; or 

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

12 claim of preferential tariff treatment has been 

13 made that is the subject of a verification under 

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

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

17 support that claim; 

18 (2) denial of preferential tariff treatment under 

19 the Agreement with respect to— 

20 (A) any textile or apparel good exported or 

21 produced by the person that is the subject of a 

22 verification under subsection (a)(1) regarding 

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

24 the Secretary determines that the person has 

25 provided incorrect information to support any 


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1 claim for preferential tariff treatment that has 

2 been made with respect to any such good; or 

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

4 claim of preferential tariff treatment has been 

5 made that is the subject of a verification under 

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

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

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

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

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

14 claim described in subsection (a)(2)(B), if the Sec15 retary determines that there is insufficient informa16 tion to determine the country of origin of any such 

17 good; and 

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

19 any textile or apparel good exported or produced by 

20 the person that is the subject of a verification under 

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

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

24 the person has provided incorrect information as to 

25 the country of origin of any such good. 


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

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

3 President may direct the Secretary of the Treasury to take 

4 appropriate action described in subsection (d) until such 

5 time as the Secretary receives information sufficient to 

6 make the determination under subsection (a)(2) or until 

7 such earlier date as the President may direct. 

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

10 (1) denial of preferential tariff treatment under 

11 the Agreement with respect to— 

12 (A) any textile or apparel good exported or 

13 produced by the person that is the subject of a 

14 verification under subsection (a)(1) regarding 

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

16 the Secretary of the Treasury determines that 

17 there is insufficient information to support, or 

18 that the person has provided incorrect informa19 tion to support, any claim for preferential tariff 

20 treatment that has been made with respect to 

21 any such good; or 

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

23 claim of preferential tariff treatment has been 

24 made that is the subject of a verification under 

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


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1 subsection (a)(2)(B), if the Secretary deter2 mines that there is insufficient information to 

3 support, or that a person has provided incorrect 

4 information to support, that claim; and 

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

6 any textile or apparel good exported or produced by 

7 the person that is the subject of a verification under 

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

9 subsection (a)(2)(A) or a claim described in sub10 section (a)(2)(B), if the Secretary determines that 

11 there is insufficient information to determine, or 

12 that the person has provided incorrect information 

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

14 (e) PUBLICATION OF NAME OF PERSON.—In accord15 ance with article 3.21.9 of the Agreement, the Secretary 

16 of the Treasury may publish the name of any person that 

17 the Secretary has determined— 

18 (1) is engaged in intentional circumvention of 

19 applicable laws, regulations, or procedures affecting 

20 trade in textile or apparel goods; or 

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

22 or is capable of producing, the textile or apparel 

23 goods that are the subject of a verification under 

24 subsection (a)(1). 


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1 SEC. 209. REGULATIONS. 

2 The Secretary of the Treasury shall prescribe such 

3 regulations as may be necessary to carry out— 

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

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

6 (3) any proclamation issued under section 

7 203(o). 

8 TITLE III—RELIEF FROM 

9 IMPORTS 

10 SEC. 301. DEFINITIONS. 

11 In this title: 

12 (1) PANAMANIAN ARTICLE.—The term ‘‘Pan13 amanian article’’ means an article that qualifies as 

14 an originating good under section 203(b). 

15 (2) PANAMANIAN TEXTILE OR APPAREL ARTI16 CLE.—The term ‘‘Panamanian textile or apparel ar17 ticle’’ means a textile or apparel good (as defined in 

18 section 3(4)) that is a Panamanian article. 

19 Subtitle A—Relief From Imports 

20 Benefitting From the Agreement 

21 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

22 (a) FILING OF PETITION.—A petition requesting ac23 tion under this subtitle for the purpose of adjusting to 

24 the obligations of the United States under the Agreement 

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

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


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

2 The Commission shall transmit a copy of any petition filed 

3 under this subsection to the United States Trade Rep4 resentative. 

5 (b) INVESTIGATION AND DETERMINATION.—Upon 

6 the filing of a petition under subsection (a), the Commis7 sion, unless subsection (d) applies, shall promptly initiate 

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

9 reduction or elimination of a duty provided for under the 

10 Agreement, a Panamanian article is being imported into 

11 the United States in such increased quantities, in absolute 

12 terms or relative to domestic production, and under such 

13 conditions that imports of the Panamanian article con14 stitute a substantial cause of serious injury or threat 

15 thereof to the domestic industry producing an article that 

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

17 (c) APPLICABLE PROVISIONS.—The following provi18 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

19 2252) apply with respect to any investigation initiated 

20 under subsection (b): 

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

22 (b). 

23 (2) Subsection (c). 

24 (3) Subsection (i). 


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1 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

2 investigation may be initiated under this section with re3 spect to any Panamanian article if, after the date on which 

4 the Agreement enters into force, import relief has been 

5 provided with respect to that Panamanian article under 

6 this subtitle. 

7 SEC. 312. COMMISSION ACTION ON PETITION. 

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

9 the date on which an investigation is initiated under sec10 tion 311(b) with respect to a petition, the Commission 

11 shall make the determination required under that section. 

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

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

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

15 1330(d) (1), (2), and (3)) shall be applied with respect 

16 to determinations and findings made under this section 

17 as if such determinations and findings were made under 

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

19 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

20 DETERMINATION AFFIRMATIVE.— 

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

22 by the Commission under subsection (a) with respect 

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

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1 vided for under paragraph (1) of section 330(d) of 

2 the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 

3 Commission shall find, and recommend to the Presi4 dent in the report required under subsection (d), the 

5 amount of import relief that is necessary to remedy 

6 or prevent the injury found by the Commission in 

7 the determination and to facilitate the efforts of the 

8 domestic industry to make a positive adjustment to 

9 import competition. 

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

11 recommended by the Commission under this sub12 section shall be limited to the relief described in sec13 tion 313(c). 

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

15 members of the Commission who voted in the af16 firmative under subsection (a) are eligible to vote on 

17 the proposed action to remedy or prevent the injury 

18 found by the Commission. Members of the Commis19 sion who did not vote in the affirmative may submit, 

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

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

22 to remedy or prevent the injury. 

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

24 date that is 30 days after the date on which a determina25 tion is made under subsection (a) with respect to an invesVerDate Mar 15 2010 06:07 Oct 04, 2011 Jkt 019002 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\H3079.IH H3079

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1 tigation, the Commission shall submit to the President a 

2 report that includes— 

3 (1) the determination made under subsection 

4 (a) and an explanation of the basis for the deter5 mination; 

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

7 affirmative, any findings and recommendations for 

8 import relief made under subsection (c) and an ex9 planation of the basis for each recommendation; and 

10 (3) any dissenting or separate views by mem11 bers of the Commission regarding the determination 

12 referred to in paragraph (1) and any finding or rec13 ommendation referred to in paragraph (2). 

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

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

16 promptly make public the report (with the exception of 

17 information which the Commission determines to be con18 fidential) and shall publish a summary of the report in 

19 the Federal Register. 

20 SEC. 313. PROVISION OF RELIEF. 

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

22 30 days after the date on which the President receives a 

23 report of the Commission in which the Commission’s de24 termination under section 312(a) is affirmative, or which 

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


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1 President considers to be affirmative under paragraph (1) 

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

3 1330(d)(1)), the President, subject to subsection (b), shall 

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

5 of such determination to the extent that the President de6 termines necessary to remedy or prevent the injury found 

7 by the Commission and to facilitate the efforts of the do8 mestic industry to make a positive adjustment to import 

9 competition. 

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

11 provide import relief under this section if the President 

12 determines that the provision of the import relief will not 

13 provide greater economic and social benefits than costs. 

14 (c) NATURE OF RELIEF.— 

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

16 President is authorized to provide under this section 

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

18 (A) The suspension of any further reduc19 tion provided for under Annex 3.3 of the Agree20 ment in the duty imposed on the article. 

21 (B) An increase in the rate of duty im22 posed on the article to a level that does not ex23 ceed the lesser of— 


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1 (i) the column 1 general rate of duty 

2 imposed under the HTS on like articles at 

3 the time the import relief is provided; or 

4 (ii) the column 1 general rate of duty 

5 imposed under the HTS on like articles on 

6 the day before the date on which the 

7 Agreement enters into force. 

8 (2) PROGRESSIVE LIBERALIZATION.—If the pe9 riod for which import relief is provided under this 

10 section is greater than 1 year, the President shall 

11 provide for the progressive liberalization (described 

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

13 regular intervals during the period of its application. 

14 (d) PERIOD OF RELIEF.— 

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

16 any import relief that the President provides under 

17 this section may not, in the aggregate, be in effect 

18 for more than 4 years. 

19 (2) EXTENSION.— 

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

21 any import relief provided under this section is 

22 less than 4 years, the President, after receiving 

23 a determination from the Commission under 

24 subparagraph (B) that is affirmative, or which 

25 the President considers to be affirmative under 


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

2 Act of 1930 (19 U.S.C. 1330(d)(1)), may ex3 tend the effective period of any import relief 

4 provided under this section, subject to the limi5 tation under paragraph (1), if the President de6 termines that— 

7 (i) the import relief continues to be 

8 necessary to remedy or prevent serious in9 jury and to facilitate adjustment by the do10 mestic industry to import competition; and 

11 (ii) there is evidence that the industry 

12 is making a positive adjustment to import 

13 competition. 

14 (B) ACTION BY COMMISSION.— 

15 (i) INVESTIGATION.—Upon a petition 

16 on behalf of the industry concerned that is 

17 filed with the Commission not earlier than 

18 the date that is 9 months, and not later 

19 than the date that is 6 months, before the 

20 date on which any action taken under sub21 section (a) is to terminate, the Commission 

22 shall conduct an investigation to determine 

23 whether action under this section continues 

24 to be necessary to remedy or prevent seri25 ous injury and whether there is evidence 


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1 that the industry is making a positive ad2 justment to import competition. 

3 (ii) NOTICE AND HEARING.—The 

4 Commission shall publish notice of the 

5 commencement of any proceeding under 

6 this subparagraph in the Federal Register 

7 and shall, within a reasonable time there8 after, hold a public hearing at which the 

9 Commission shall afford interested parties 

10 and consumers an opportunity to be 

11 present, to present evidence, and to re12 spond to the presentations of other parties 

13 and consumers, and otherwise to be heard. 

14 (iii) REPORT.—The Commission shall 

15 submit to the President a report on its in16 vestigation and determination under this 

17 subparagraph not later than 60 days be18 fore the action under subsection (a) is to 

19 terminate, unless the President specifies a 

20 different date. 

21 (e) RATE AFTER TERMINATION OF IMPORT RE22 LIEF.—When import relief under this section is termi23 nated with respect to an article— 

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

25 termination and on or before December 31 of the 


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1 year in which such termination occurs shall be the 

2 rate that, according to the Schedule of the United 

3 States to Annex 3.3 of the Agreement, would have 

4 been in effect 1 year after the provision of relief 

5 under subsection (a); and 

6 (2) the rate of duty for that article after De7 cember 31 of the year in which such termination oc8 curs shall be, at the discretion of the President, ei9 ther— 

10 (A) the applicable rate of duty for that ar11 ticle set forth in the Schedule of the United 

12 States to Annex 3.3 of the Agreement; or 

13 (B) the rate of duty resulting from the 

14 elimination of the tariff in equal annual stages 

15 ending on the date set forth in the Schedule of 

16 the United States to Annex 3.3 of the Agree17 ment for the elimination of the tariff. 

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

19 relief may be provided under this section on— 

20 (1) any article that is subject to import relief 

21 under— 

22 (A) subtitle B; or 

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

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


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1 (2) any article on which an additional duty as2 sessed under section 202(b) is in effect. 

3 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

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

5 import relief may be provided under this subtitle after the 

6 date that is 10 years after the date on which the Agree7 ment enters into force. 

8 (b) EXCEPTION.—If an article for which relief is pro9 vided under this subtitle is an article for which the period 

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

11 United States to Annex 3.3 of the Agreement, is greater 

12 than 10 years, no relief under this subtitle may be pro13 vided for that article after the date on which that period 

14 ends. 

15 SEC. 315. COMPENSATION AUTHORITY. 

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

17 (19 U.S.C. 2133), any import relief provided by the Presi18 dent under section 313 shall be treated as action taken 

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

20 et seq.). 

21 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

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

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

24 (1) by striking ‘‘and’’; and 


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

2 and title III of the United States–Panama Trade 

3 Promotion Agreement Implementation Act’’. 

4 Subtitle B—Textile and Apparel 

5 Safeguard Measures 

6 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 

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

8 subtitle for the purpose of adjusting to the obligations of 

9 the United States under the Agreement may be filed with 

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

11 a request, the President shall review the request to deter12 mine, from information presented in the request, whether 

13 to commence consideration of the request. 

14 (b) PUBLICATION OF REQUEST.—If the President de15 termines that the request under subsection (a) provides 

16 the information necessary for the request to be considered, 

17 the President shall publish in the Federal Register a no18 tice of commencement of consideration of the request, and 

19 notice seeking public comments regarding the request. The 

20 notice shall include a summary of the request and the 

21 dates by which comments and rebuttals must be received. 

22 SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 

23 (a) DETERMINATION.— 

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

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1 termine whether, as a result of the elimination of a 

2 duty under the Agreement, a Panamanian textile or 

3 apparel article is being imported into the United 

4 States in such increased quantities, in absolute 

5 terms or relative to the domestic market for that ar6 ticle, and under such conditions as to cause serious 

7 damage, or actual threat thereof, to a domestic in8 dustry producing an article that is like, or directly 

9 competitive with, the imported article. 

10 (2) SERIOUS DAMAGE.—In making a deter11 mination under paragraph (1), the President— 

12 (A) shall examine the effect of increased 

13 imports on the domestic industry, as reflected 

14 in changes in such relevant economic factors as 

15 output, productivity, utilization of capacity, in16 ventories, market share, exports, wages, em17 ployment, domestic prices, profits, and invest18 ment, no one of which is necessarily decisive; 

19 and 

20 (B) shall not consider changes in consumer 

21 preference or changes in technology as factors 

22 supporting a determination of serious damage 

23 or actual threat thereof. 

24 (3) DEADLINE FOR DETERMINATION.—The 

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1 graph (1) not later than 30 days after the comple2 tion of any consultations held pursuant to article 

3 3.24.4 of the Agreement. 

4 (b) PROVISION OF RELIEF.— 

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

6 subsection (a) is affirmative, the President may pro7 vide relief from imports of the article that is the 

8 subject of such determination, as provided in para9 graph (2), to the extent that the President deter10 mines necessary to remedy or prevent the serious 

11 damage and to facilitate adjustment by the domestic 

12 industry. 

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

14 President is authorized to provide under this sub15 section with respect to imports of an article is an in16 crease in the rate of duty imposed on the article to 

17 a level that does not exceed the lesser of— 

18 (A) the column 1 general rate of duty im19 posed under the HTS on like articles at the 

20 time the import relief is provided; or 

21 (B) the column 1 general rate of duty im22 posed under the HTS on like articles on the 

23 day before the date on which the Agreement en24 ters into force. 


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1 SEC. 323. PERIOD OF RELIEF. 

2 (a) IN GENERAL.—Subject to subsection (b), any im3 port relief that the President provides under section 

4 322(b) may not, in the aggregate, be in effect for more 

5 than 3 years. 

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

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

8 President may extend the effective period of any import 

9 relief provided under that section, subject to the limitation 

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

11 that— 

12 (1) the import relief continues to be necessary 

13 to remedy or prevent serious damage and to facili14 tate adjustment by the domestic industry to import 

15 competition; and 

16 (2) there is evidence that the industry is mak17 ing a positive adjustment to import competition. 

18 SEC. 324. ARTICLES EXEMPT FROM RELIEF. 

19 The President may not provide import relief under 

20 this subtitle with respect to an article if— 

21 (1) import relief previously has been provided 

22 under this subtitle with respect to that article; or 

23 (2) the article is subject to import relief 

24 under— 

25 (A) subtitle A; or 


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

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

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

4 On the date on which import relief under this subtitle 

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

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

7 effect but for the provision of such relief. 

8 SEC. 326. TERMINATION OF RELIEF AUTHORITY. 

9 No import relief may be provided under this subtitle 

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

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

12 SEC. 327. COMPENSATION AUTHORITY. 

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

14 (19 U.S.C. 2133), any import relief provided by the Presi15 dent under this subtitle shall be treated as action taken 

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

17 et seq.). 

18 SEC. 328. CONFIDENTIAL BUSINESS INFORMATION. 

19 The President may not release information received 

20 in connection with an investigation or determination under 

21 this subtitle which the President considers to be confiden22 tial business information unless the party submitting the 

23 confidential business information had notice, at the time 

24 of submission, that such information would be released by 

25 the President, or such party subsequently consents to the 


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

2 confidential business information, the party shall also pro3 vide a nonconfidential version of the information in which 

4 the confidential business information is summarized or, if 

5 necessary, deleted. 

6 Subtitle C—Cases Under Title II of 

7 the Trade Act of 1974 

8 SEC. 331. FINDINGS AND ACTION ON PANAMANIAN ARTI9 CLES. 

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

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

12 1974 (19 U.S.C. 2251 et seq.), the Commission makes an 

13 affirmative determination (or a determination which the 

14 President may treat as an affirmative determination under 

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

16 of 1930 (19 U.S.C. 1330(d))), the Commission shall also 

17 find (and report to the President at the time such injury 

18 determination is submitted to the President) whether im19 ports of the Panamanian article are a substantial cause 

20 of serious injury or threat thereof. 

21 (b) PRESIDENTIAL DETERMINATION REGARDING IM22 PORTS OF PANAMANIAN ARTICLES.—In determining the 

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

24 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et 

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1 nian articles with respect to which the Commission has 

2 made a negative finding under subsection (a). 

3 TITLE IV—MISCELLANEOUS 

4 SEC. 401. ELIGIBLE PRODUCTS. 

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

6 1979 (19 U.S.C. 2518(4)(A)) is amended— 

7 (1) by striking ‘‘or’’ at the end of clause (viii); 

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

9 (ix) and inserting ‘‘; or’’; and 

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

11 clause: 

12 ‘‘(x) a party to the United States– 

13 Panama Trade Promotion Agreement, a 

14 product or service of that country or in15 strumentality which is covered under that 

16 agreement for procurement by the United 

17 States.’’. 

18 SEC. 402. MODIFICATION TO THE CARIBBEAN BASIN ECO19 NOMIC RECOVERY ACT. 

20 (a) IN GENERAL.—Section 212(b) of the Caribbean 

21 Basin Economic Recovery Act (19 U.S.C. 2702(b)) is 

22 amended by striking ‘‘Panama’’ from the list of countries 

23 eligible for designation as beneficiary countries. 

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

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1 dent terminates the designation of Panama as a bene2 ficiary country pursuant to section 201(a)(3) of this Act. 

3 TITLE V—OFFSETS 

4 SEC. 501. EXTENSION OF CUSTOMS USER FEES. 

5 Section 13031(j)(3) of the Consolidated Omnibus 

6 Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) 

7 is amended by adding at the end the following: 

8 ‘‘(D) Notwithstanding subparagraph (B)(i), fees may 

9 be charged under paragraphs (1) through (8) of sub10 section (a) during the period beginning on September 1, 

11 2021, and ending on September 30, 2021.’’. 

12 SEC. 502. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

13 TAXES. 

14 Notwithstanding section 6655 of the Internal Rev15 enue Code of 1986, in the case of a corporation with assets 

16 of not less than $1,000,000,000 (determined as of the end 

17 of the preceding taxable year)— 

18 (1) the amount of any required installment of 

19 corporate estimated tax which is otherwise due in 

20 July, August, or September of 2012 shall be in21 creased by 0.25 percent of such amount (determined 

22 without regard to any increase in such amount not 

23 contained in such Code); 

24 (2) the amount of any required installment of 

25 corporate estimated tax which is otherwise due in 


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1 July, August, or September of 2016 shall be in2 creased by 0.25 percent of such amount (determined 

3 without regard to any increase in such amount not 

4 contained in such Code); and 

5 (3) the amount of the next required installment 

6 after an installment referred to in paragraph (1) or 

7 (2) shall be appropriately reduced to reflect the 

8 amount of the increase by reason of such paragraph. 

Æ 


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