I 

112TH CONGRESS 

1ST SESSION H. R. 3080 

To implement the United States–Korea Free Trade Agreement. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 3, 2011 

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

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

A BILL 

To implement the United States–Korea Free Trade 

Agreement. 

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

3 SECTION 1. SHORT TITLE. 

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

5 ‘‘United States–Korea Free Trade Agreement Implemen6 tation Act’’. 

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

8 this Act is as follows: 

Sec. 1. Short title. 

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. Rules of origin. 

Sec. 203. Customs user fees. 

Sec. 204. Disclosure of incorrect information; false certifications of origin; denial of preferential tariff treatment. 

Sec. 205. Reliquidation of entries. 

Sec. 206. Recordkeeping requirements. 

Sec. 207. Enforcement relating to trade in textile or apparel goods. 

Sec. 208. 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—Motor Vehicle Safeguard Measures 

Sec. 321. Motor vehicle safeguard measures. 

Subtitle C—Textile and Apparel Safeguard Measures 

Sec. 331. Commencement of action for relief. 

Sec. 332. Determination and provision of relief. 

Sec. 333. Period of relief. 

Sec. 334. Articles exempt from relief. 

Sec. 335. Rate after termination of import relief. 

Sec. 336. Termination of relief authority. 

Sec. 337. Compensation authority. 

Sec. 338. Confidential business information. 

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

Sec. 341. Findings and action on Korean articles. 

TITLE IV—PROCUREMENT 

Sec. 401. Eligible products. 

TITLE V—OFFSETS 


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Sec. 501. Increase in penalty on paid preparers who fail to comply with earned 

income tax credit due diligence requirements. 

Sec. 502. Requirement for prisons located in the United States to provide information for tax administration. 

Sec. 503. Rate for merchandise processing fees. 

Sec. 504. Extension of customs user fees. 

Sec. 505. 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 Korea en5 tered into under the authority of section 2103(b) of 

6 the Bipartisan Trade Promotion Authority Act of 

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

8 (2) to secure the benefits of the agreement en9 tered into pursuant to an exchange of letters be10 tween the United States and the Government of 

11 Korea on February 10, 2011; 

12 (3) to strengthen and develop economic rela13 tions between the United States and Korea for their 

14 mutual benefit; 

15 (4) to establish free trade between the United 

16 States and Korea through the reduction and elimi17 nation of barriers to trade in goods and services and 

18 to investment; and 

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

21 Agreement. 


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1 SEC. 3. DEFINITIONS. 

2 In this Act: 

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

4 means the United States–Korea Free Trade Agree5 ment approved by Congress under section 101(a)(1). 

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

7 means the United States International Trade Com8 mission. 

9 (3) HTS.—The term ‘‘HTS’’ means the Har10 monized Tariff Schedule of the United States. 

11 (4) KOREA.—The term ‘‘Korea’’ means the Re12 public of Korea. 

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

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

15 Annex to the Agreement on Textiles and Clothing 

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

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

18 TITLE I—APPROVAL OF, AND 

19 GENERAL PROVISIONS RE20 LATING TO, THE AGREEMENT 

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

22 AGREEMENT. 

23 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

24 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

25 the Bipartisan Trade Promotion Authority Act of 2002 


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1 (19 U.S.C. 3805) and section 151 of the Trade Act of 

2 1974 (19 U.S.C. 2191), Congress approves— 

3 (1) the United States–Korea Free Trade Agree4 ment entered into on June 30, 2007, with the Gov5 ernment of Korea, and submitted to Congress on 

6 October 3, 2011; and 

7 (2) the statement of administrative action pro8 posed to implement the Agreement that was sub9 mitted to Congress on October 3, 2011. 

10 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

11 AGREEMENT.—At such time as the President determines 

12 that Korea has taken measures necessary to comply with 

13 those provisions of the Agreement that are to take effect 

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

15 President is authorized to exchange notes with the Gov16 ernment of Korea providing for the entry into force, on 

17 or after January 1, 2012, of the Agreement with respect 

18 to the United States. 

19 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

20 STATES AND STATE LAW. 

21 (a) RELATIONSHIP OF AGREEMENT TO UNITED

22 STATES LAW.— 

23 (1) UNITED STATES LAW TO PREVAIL IN CON24 FLICT.—No provision of the Agreement, nor the ap25 plication of any such provision to any person or cirVerDate Mar 15 2010 23:46 Oct 03, 2011 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3080.IH H3080

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1 cumstance, which is inconsistent with any law of the 

2 United States shall have effect. 

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

4 be construed— 

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

6 United States, or 

7 (B) to limit any authority conferred under 

8 any law of the United States, 

9 unless specifically provided for in this Act. 

10 (b) RELATIONSHIP OF AGREEMENT TO STATE

11 LAW.— 

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

13 application thereof, may be declared invalid as to 

14 any person or circumstance on the ground that the 

15 provision or application is inconsistent with the 

16 Agreement, except in an action brought by the 

17 United States for the purpose of declaring such law 

18 or application invalid. 

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

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

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

22 State; and 

23 (B) any State law regulating or taxing the 

24 business of insurance. 


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1 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI2 VATE REMEDIES.—No person other than the United 

3 States— 

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

5 under the Agreement or by virtue of congressional 

6 approval thereof; or 

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

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

9 department, agency, or other instrumentality of the 

10 United States, any State, or any political subdivision 

11 of a State, on the ground that such action or inac12 tion is inconsistent with the Agreement. 

13 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 

14 ENTRY INTO FORCE AND INITIAL REGULA15 TIONS. 

16 (a) IMPLEMENTING ACTIONS.— 

17 (1) PROCLAMATION AUTHORITY.—After the 

18 date of the enactment of this Act— 

19 (A) the President may proclaim such ac20 tions, and 

21 (B) other appropriate officers of the 

22 United States Government may issue such reg23 ulations, 

24 as may be necessary to ensure that any provision of 

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


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1 effect on the date on which the Agreement enters 

2 into force is appropriately implemented on such 

3 date, but no such proclamation or regulation may 

4 have an effective date earlier than the date on which 

5 the Agreement enters into force. 

6 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

7 ACTIONS.—Any action proclaimed by the President 

8 under the authority of this Act that is not subject 

9 to the consultation and layover provisions under sec10 tion 104 may not take effect before the 15th day 

11 after the date on which the text of the proclamation 

12 is published in the Federal Register. 

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

14 day restriction contained in paragraph (2) on the 

15 taking effect of proclaimed actions is waived to the 

16 extent that the application of such restriction would 

17 prevent the taking effect on the date on which the 

18 Agreement enters into force of any action pro19 claimed under this section. 

20 (b) INITIAL REGULATIONS.—Initial regulations nec21 essary or appropriate to carry out the actions required by 

22 or authorized under this Act or proposed in the statement 

23 of administrative action submitted under section 

24 101(a)(2) to implement the Agreement shall, to the max25 imum extent feasible, be issued within 1 year after the 


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

2 of any implementing action that takes effect on a date 

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

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

5 maximum extent feasible, be issued within 1 year after 

6 such effective date. 

7 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 

8 AND EFFECTIVE DATE OF, PROCLAIMED AC9 TIONS. 

10 If a provision of this Act provides that the implemen11 tation of an action by the President by proclamation is 

12 subject to the consultation and layover requirements of 

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

14 (1) the President has obtained advice regarding 

15 the proposed action from— 

16 (A) the appropriate advisory committees 

17 established under section 135 of the Trade Act 

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

19 (B) the Commission; 

20 (2) the President has submitted to the Com21 mittee on Finance of the Senate and the Committee 

22 on Ways and Means of the House of Representatives 

23 a report that sets forth— 

24 (A) the action proposed to be proclaimed 

25 and the reasons therefor; and 


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1 (B) the advice obtained under paragraph 

2 (1); 

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

4 the first day on which the requirements set forth in 

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

6 and 

7 (4) the President has consulted with the com8 mittees referred to in paragraph (2) regarding the 

9 proposed action during the period referred to in 

10 paragraph (3). 

11 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO12 CEEDINGS. 

13 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.— 

14 The President is authorized to establish or designate with15 in the Department of Commerce an office that shall be 

16 responsible for providing administrative assistance to pan17 els established under chapter 22 of the Agreement. The 

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

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

20 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated for each fiscal year after 

22 fiscal year 2011 to the Department of Commerce up to 

23 $750,000 for the establishment and operations of the of24 fice established or designated under subsection (a) and for 


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1 the payment of the United States share of the expenses 

2 of panels established under chapter 22 of the Agreement. 

3 SEC. 106. ARBITRATION OF CLAIMS. 

4 The United States is authorized to resolve any claim 

5 against the United States covered by article 

6 11.16.1(a)(i)(C) or article 11.16.1(b)(i)(C) of the Agree7 ment, pursuant to the Investor-State Dispute Settlement 

8 procedures set forth in section B of chapter 11 of the 

9 Agreement. 

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

11 (a) EFFECTIVE DATES.—Except as provided in sub12 section (b), this Act and the amendments made by this 

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

14 into force. 

15 (b) EXCEPTIONS.— 

16 (1) IN GENERAL.—Sections 1 through 3, sec17 tion 207(g), this title, and title V take effect on the 

18 date of the enactment of this Act. 

19 (2) CERTAIN AMENDATORY PROVISIONS.—The 

20 amendments made by sections 203, 204, 206, and 

21 401 of this Act take effect on the date of the enact22 ment of this Act and apply with respect to Korea on 

23 the date on which the Agreement enters into force. 

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

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


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1 than this subsection and title V) and the amendments 

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

3 title V) shall cease to have effect. 

4 TITLE II—CUSTOMS PROVISIONS 

5 SEC. 201. TARIFF MODIFICATIONS. 

6 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

7 AGREEMENT.—The President may proclaim— 

8 (1) such modifications or continuation of any 

9 duty, 

10 (2) such continuation of duty-free or excise 

11 treatment, or 

12 (3) such additional duties, 

13 as the President determines to be necessary or appropriate 

14 to carry out or apply articles 2.3, 2.5, and 2.6, and Annex 

15 2-B, Annex 4-B, and Annex 22-A, of the Agreement. 

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

17 consultation and layover provisions of section 104, the 

18 President may proclaim— 

19 (1) such modifications or continuation of any 

20 duty, 

21 (2) such modifications as the United States 

22 may agree to with Korea regarding the staging of 

23 any duty treatment set forth in Annex 2-B of the 

24 Agreement, 


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

2 treatment, or 

3 (4) such additional duties, 

4 as the President determines to be necessary or appropriate 

5 to maintain the general level of reciprocal and mutually 

6 advantageous concessions with respect to Korea provided 

7 for by the Agreement. 

8 (c) CONVERSION TO AD VALOREM RATES.—For pur9 poses of subsections (a) and (b), with respect to any good 

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

11 States to Annex 2-B of the Agreement is a specific or com12 pound rate of duty, the President may substitute for the 

13 base rate an ad valorem rate that the President deter14 mines to be equivalent to the base rate. 

15 (d) TARIFF TREATMENT OF MOTOR VEHICLES.— 

16 The President may proclaim the following tariff treatment 

17 with respect to the following motor vehicles of Korea: 

18 (1) CERTAIN PASSENGER CARS.—In the case of 

19 originating goods of Korea classifiable under sub20 heading 8703.10.10, 8703.10.50, 8703.21.00, 

21 8703.22.00, 8703.23.00, 8703.24.00, 8703.31.00, 

22 8703.32.00, or 8703.33.00 of the HTS that are en23 tered, or withdrawn from warehouse for consump24 tion— 


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1 (A) the rate of duty for such goods shall 

2 be 2.5 percent for year 1 of the Agreement 

3 through year 4 of the Agreement; and 

4 (B) such goods shall be free of duty for 

5 each year thereafter. 

6 (2) ELECTRIC MOTOR VEHICLES.—In the case 

7 of originating goods of Korea classifiable under sub8 heading 8703.90.00 of the HTS that are entered, or 

9 withdrawn from warehouse for consumption— 

10 (A) the rate of duty for such goods shall 

11 be— 

12 (i) 2.0 percent for year 1 of the 

13 Agreement; 

14 (ii) 1.5 percent for year 2 of the 

15 Agreement; 

16 (iii) 1.0 percent for year 3 of the 

17 Agreement; and 

18 (iv) 0.5 percent for year 4 of the 

19 Agreement; and 

20 (B) such goods shall be free of duty for 

21 each year thereafter. 

22 (3) CERTAIN TRUCKS.—In the case of origi23 nating goods of Korea classifiable under subheading 

24 8704.21.00, 8704.22.50, 8704.23.00, 8704.31.00, 

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1 tered, or withdrawn from warehouse for consump2 tion— 

3 (A) the rate of duty for such goods shall 

4 be— 

5 (i) 25 percent for year 1 of the Agree6 ment through year 7 of the Agreement; 

7 (ii) 16.6 percent for year 8 of the 

8 Agreement; and 

9 (iii) 8.3 percent for year 9 of the 

10 Agreement; and 

11 (B) such goods shall be free of duty for 

12 each year thereafter. 

13 (4) DEFINITIONS.—In this subsection— 

14 (A) the term ‘‘year 1 of the Agreement’’ 

15 means the period beginning on the date, in a 

16 calendar year, on which the Agreement enters 

17 into force and ending on December 31 of that 

18 calendar year; and 

19 (B) the terms ‘‘year 2 of the Agreement’’, 

20 ‘‘year 3 of the Agreement’’, ‘‘year 4 of the 

21 Agreement’’, ‘‘year 5 of the Agreement’’, ‘‘year 

22 6 of the Agreement’’, ‘‘year 7 of the Agree23 ment’’, ‘‘year 8 of the Agreement’’, and ‘‘year 

24 9 of the Agreement’’ mean the second, third, 

25 fourth, fifth, sixth, seventh, eighth, and ninth 


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1 calendar years, respectively, in which the Agree2 ment is in force. 

3 SEC. 202. RULES OF ORIGIN. 

4 (a) APPLICATION AND INTERPRETATION.—In this 

5 section: 

6 (1) TARIFF CLASSIFICATION.—The basis for 

7 any tariff classification is the HTS. 

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

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

10 subheading, such reference shall be a reference to a 

11 chapter, heading, or subheading of the HTS. 

12 (3) COST OR VALUE.—Any cost or value re13 ferred to in this section shall be recorded and main14 tained in accordance with the generally accepted ac15 counting principles applicable in the territory of the 

16 country in which the good is produced (whether 

17 Korea or the United States). 

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

19 and for purposes of implementing the preferential tariff 

20 treatment provided for under the Agreement, except as 

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

22 good if— 

23 (1) the good is a good wholly obtained or pro24 duced entirely in the territory of Korea, the United 

25 States, or both; 


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1 (2) the good— 

2 (A) is produced entirely in the territory of 

3 Korea, the United States, or both, and— 

4 (i) each of the nonoriginating mate5 rials used in the production of the good 

6 undergoes an applicable change in tariff 

7 classification specified in Annex 4-A or 

8 Annex 6-A of the Agreement; or 

9 (ii) the good otherwise satisfies any 

10 applicable regional value-content or other 

11 requirements specified in Annex 4-A or 

12 Annex 6-A of the Agreement; and 

13 (B) satisfies all other applicable require14 ments of this section; or 

15 (3) the good is produced entirely in the terri16 tory of Korea, the United States, or both, exclusively 

17 from materials described in paragraph (1) or (2). 

18 (c) REGIONAL VALUE-CONTENT.— 

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

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

21 to in Annex 6-A of the Agreement, except for goods 

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

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

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


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

2 paragraph (3). 

3 (2) BUILD-DOWN METHOD.— 

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

6 of the following build-down method: 

AV¥VNM 

RVC = ————— × 100 

AV 

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

8 (i) RVC.—The term ‘‘RVC’’ means 

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

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

12 adjusted value of the good. 

13 (iii) VNM.—The term ‘‘VNM’’ means 

14 the value of nonoriginating materials, other 

15 than indirect materials, that are acquired 

16 and used by the producer in the production 

17 of the good, but does not include the value 

18 of a material that is self-produced. 

19 (3) BUILD-UP METHOD.— 

20 (A) IN GENERAL.—The regional value-con21 tent of a good may be calculated on the basis 

22 of the following build-up method: 

VOM RVC = ————— × 100 

AV 

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


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1 (i) RVC.—The term ‘‘RVC’’ means 

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

4 (ii) AV.—The term ‘‘AV’’ means the 

5 adjusted value of the good. 

6 (iii) VOM.—The term ‘‘VOM’’ means 

7 the value of originating materials, other 

8 than indirect materials, that are acquired 

9 or self-produced, and used by the producer 

10 in the production of the good. 

11 (4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE

12 GOODS.— 

13 (A) IN GENERAL.—For purposes of sub14 section (b)(2), the regional value-content of an 

15 automotive good referred to in Annex 6-A of 

16 the Agreement may be calculated by the im17 porter, exporter, or producer of the good on the 

18 basis of the build-down method described in 

19 paragraph (2), the build-up method described in 

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

NC¥VNM 

RVC = ————— × 100 

NC 

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

22 (i) AUTOMOTIVE GOOD.—The term 

23 ‘‘automotive good’’ means a good provided 

24 for in any of subheadings 8407.31 through 


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1 8407.34, subheading 8408.20, heading 

2 8409, or any of headings 8701 through 

3 8708. 

4 (ii) RVC.—The term ‘‘RVC’’ means 

5 the regional value-content of the auto6 motive good, expressed as a percentage. 

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

8 net cost of the automotive good. 

9 (iv) VNM.—The term ‘‘VNM’’ means 

10 the value of nonoriginating materials, other 

11 than indirect materials, that are acquired 

12 and used by the producer in the production 

13 of the automotive good, but does not in14 clude the value of a material that is self15 produced. 

16 (C) MOTOR VEHICLES.— 

17 (i) BASIS OF CALCULATION.—For 

18 purposes of determining the regional value19 content under subparagraph (A) for an 

20 automotive good that is a motor vehicle 

21 provided for in any of headings 8701 

22 through 8705, an importer, exporter, or 

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1 tained in subparagraph (A), over the pro2 ducer’s fiscal year— 

3 (I) with respect to all motor vehi4 cles in any one of the categories de5 scribed in clause (ii); or 

6 (II) with respect to all motor ve7 hicles in any such category that are 

8 exported to the territory of Korea or 

9 the United States. 

10 (ii) CATEGORIES.—A category is de11 scribed in this clause if it— 

12 (I) is the same model line of 

13 motor vehicles, is in the same class of 

14 motor vehicles, and is produced in the 

15 same plant in the territory of Korea 

16 or the United States, as the good de17 scribed in clause (i) for which regional 

18 value-content is being calculated; 

19 (II) is the same class of motor 

20 vehicles, and is produced in the same 

21 plant in the territory of Korea or the 

22 United States, as the good described 

23 in clause (i) for which regional value24 content is being calculated; or 


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1 (III) is the same model line of 

2 motor vehicles produced in the terri3 tory of Korea or the United States as 

4 the good described in clause (i) for 

5 which regional value-content is being 

6 calculated. 

7 (D) OTHER AUTOMOTIVE GOODS.—For 

8 purposes of determining the regional value-con9 tent under subparagraph (A) for automotive 

10 materials provided for in any of subheadings 

11 8407.31 through 8407.34, in subheading 

12 8408.20, or in heading 8409, 8706, 8707, or 

13 8708, that are produced in the same plant, an 

14 importer, exporter, or producer may— 

15 (i) average the amounts calculated 

16 under the net cost formula contained in 

17 subparagraph (A) over— 

18 (I) the fiscal year of the motor 

19 vehicle producer to whom the auto20 motive goods are sold, 

21 (II) any quarter or month, or 

22 (III) the fiscal year of the pro23 ducer of such goods, 


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

3 basis for the calculation; 

4 (ii) determine the average referred to 

5 in clause (i) separately for such goods sold 

6 to 1 or more motor vehicle producers; or 

7 (iii) make a separate determination 

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

9 are exported to the territory of Korea or 

10 the United States. 

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

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

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

18 (i) calculating the total cost incurred 

19 with respect to all goods produced by the 

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

22 and after-sales service costs, royalties, 

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

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1 sonably allocating the resulting net cost of 

2 those goods to the automotive good; 

3 (ii) calculating the total cost incurred 

4 with respect to all goods produced by that 

5 producer, reasonably allocating the total 

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

8 and after-sales service costs, royalties, 

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

11 portion of the total cost allocated to the 

12 automotive good; or 

13 (iii) reasonably allocating each cost 

14 that forms part of the total cost incurred 

15 with respect to the automotive good so that 

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

18 after-sales service costs, royalties, shipping 

19 and packing costs, or nonallowable interest 

20 costs. 

21 (d) VALUE OF MATERIALS.— 

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

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


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

2 material is— 

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

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

7 the territory in which the good is produced, the 

8 value, determined in accordance with Articles 1 

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

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

15 in regulations promulgated by the Secretary of 

16 the Treasury providing for the application of 

17 such Articles in the absence of an importation 

18 by the producer; or 

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

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

23 expenses; and 


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1 (ii) an amount for profit equivalent to 

2 the profit added in the normal course of 

3 trade. 

4 (2) FURTHER ADJUSTMENTS TO THE VALUE OF

5 MATERIALS.— 

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

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

10 originating material: 

11 (i) The costs of freight, insurance, 

12 packing, and all other costs incurred in 

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

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

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

20 other than duties or taxes that are waived, 

21 refunded, refundable, or otherwise recover22 able, including credit against duty or tax 

23 paid or payable. 

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


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1 production of the good, less the value of 

2 renewable scrap or byproducts. 

3 (B) NONORIGINATING MATERIAL.—The 

4 following expenses, if included in the value of a 

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

7 the nonoriginating material: 

8 (i) The costs of freight, insurance, 

9 packing, and all other costs incurred in 

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

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

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

17 other than duties or taxes that are waived, 

18 refunded, refundable, or otherwise recover19 able, including credit against duty or tax 

20 paid or payable. 

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

23 production of the good, less the value of 

24 renewable scrap or byproducts. 


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1 (iv) The cost of originating materials 

2 used in the production of the nonorigi3 nating material in the territory of Korea, 

4 the United States, or both. 

5 (e) ACCUMULATION.— 

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

9 United States that are used in the production of a 

10 good in the territory of the other country shall be 

11 considered to originate in the territory of such other 

12 country. 

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

14 produced in the territory of Korea, the United 

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

17 subsection (b) and all other applicable requirements 

18 of this section. 

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

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

23 change in tariff classification pursuant to Annex 6- 

24 A of the Agreement is an originating good if— 


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1 (A) the value of all nonoriginating mate2 rials used in the production of the good that do 

3 not undergo the applicable change in tariff clas4 sification (set forth in Annex 6-A of the Agree5 ment) does not exceed 10 percent of the ad6 justed value of the good; 

7 (B) the good meets all other applicable re8 quirements of this section; and 

9 (C) the value of such nonoriginating mate10 rials is included in the value of nonoriginating 

11 materials for any applicable regional value-con12 tent requirement for the good. 

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

14 apply to the following: 

15 (A) A nonoriginating material provided for 

16 in chapter 3 that is used in the production of 

17 a good provided for in chapter 3. 

18 (B) A nonoriginating material provided for 

19 in chapter 4, or a nonoriginating dairy prepara20 tion containing over 10 percent by weight of 

21 milk solids provided for in subheading 1901.90 

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

23 good provided for in chapter 4. 

24 (C) A nonoriginating material provided for 

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1 tion containing over 10 percent by weight of 

2 milk solids provided for in subheading 1901.90, 

3 that is used in the production of any of the fol4 lowing goods: 

5 (i) Infant preparations containing 

6 over 10 percent by weight of milk solids 

7 provided for in subheading 1901.10. 

8 (ii) Mixes and doughs, containing over 

9 25 percent by weight of butterfat, not put 

10 up for retail sale, provided for in sub11 heading 1901.20. 

12 (iii) Dairy preparations containing 

13 over 10 percent by weight of milk solids 

14 provided for in subheading 1901.90 or 

15 2106.90. 

16 (iv) Goods provided for in heading 

17 2105. 

18 (v) Beverages containing milk pro19 vided for in subheading 2202.90. 

20 (vi) Animal feeds containing over 10 

21 percent by weight of milk solids provided 

22 for in subheading 2309.90. 

23 (D) A nonoriginating material provided for 

24 in chapter 7 that is used in the production of 

25 a good provided for in subheading 0703.10, 


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1 0703.20, 0709.59, 0709.60, 0711.90, 0712.20, 

2 0714.20, or any of subheadings 0710.21 

3 through 0710.80 or 0712.39 through 0713.10. 

4 (E) A nonoriginating material provided for 

5 in heading 1006, or a nonoriginating rice prod6 uct provided for in chapter 11 that is used in 

7 the production of a good provided for in head8 ing 1006, 1102, 1103, 1104, or subheading 

9 1901.20 or 1901.90. 

10 (F) A nonoriginating material provided for 

11 in heading 0805, or any of subheadings 

12 2009.11 through 2009.39, that is used in the 

13 production of a good provided for in any of sub14 headings 2009.11 through 2009.39, or in fruit 

15 or vegetable juice of any single fruit or vege16 table, fortified with minerals or vitamins, con17 centrated or unconcentrated, provided for in 

18 subheading 2106.90 or 2202.90. 

19 (G) Nonoriginating peaches, pears, or apri20 cots provided for in chapter 8 or 20 that are 

21 used in the production of a good provided for 

22 in heading 2008. 

23 (H) A nonoriginating material provided for 

24 in chapter 15 that is used in the production of 


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1 a good provided for in any of headings 1501 

2 through 1508, or heading 1512, 1514, or 1515. 

3 (I) A nonoriginating material provided for 

4 in heading 1701 that is used in the production 

5 of a good provided for in any of headings 1701 

6 through 1703. 

7 (J) A nonoriginating material provided for 

8 in chapter 17 that is used in the production of 

9 a good provided for in subheading 1806.10. 

10 (K) Except as provided in subparagraphs 

11 (A) through (J) and Annex 6-A of the Agree12 ment, a nonoriginating material used in the 

13 production of a good provided for in any of 

14 chapters 1 through 24, unless the nonorigi15 nating material is provided for in a different 

16 subheading than the good for which origin is 

17 being determined under this section. 

18 (3) TEXTILE OR APPAREL GOODS.— 

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

20 subparagraph (B), a textile or apparel good 

21 that is not an originating good because certain 

22 fibers or yarns used in the production of the 

23 component of the good that determines the tar24 iff classification of the good do not undergo an 

25 applicable change in tariff classification, set 


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1 forth in Annex 4-A of the Agreement, shall be 

2 considered to be an originating good if the total 

3 weight of all such fibers or yarns in that com4 ponent is not more than 7 percent of the total 

5 weight of that component. 

6 (B) CERTAIN TEXTILE OR APPAREL

7 GOODS.—A textile or apparel good containing 

8 elastomeric yarns in the component of the good 

9 that determines the tariff classification of the 

10 good shall be considered to be an originating 

11 good only if such yarns are wholly formed and 

12 finished in the territory of Korea, the United 

13 States, or both. 

14 (C) YARN, FABRIC, OR FIBER.—For pur15 poses of this paragraph, in the case of a good 

16 that is a yarn, fabric, or fiber, the term ‘‘com17 ponent of the good that determines the tariff 

18 classification of the good’’ means all of the fi19 bers in the good. 

20 (g) FUNGIBLE GOODS AND MATERIALS.— 

21 (1) IN GENERAL.— 

22 (A) CLAIM FOR PREFERENTIAL TARIFF

23 TREATMENT.—A person claiming that a fun24 gible good or fungible material is an originating 

25 good may base the claim either on the physical 


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1 segregation of the fungible good or fungible ma2 terial or by using an inventory management 

3 method with respect to the fungible good or 

4 fungible material. 

5 (B) INVENTORY MANAGEMENT METHOD.— 

6 In this subsection, the term ‘‘inventory manage7 ment method’’ means— 

8 (i) averaging; 

9 (ii) ‘‘last-in, first-out’’; 

10 (iii) ‘‘first-in, first-out’’; or 

11 (iv) any other method— 

12 (I) recognized in the generally 

13 accepted accounting principles of the 

14 country in which the production is 

15 performed (whether Korea or the 

16 United States); or 

17 (II) otherwise accepted by that 

18 country. 

19 (2) ELECTION OF INVENTORY METHOD.—A 

20 person selecting an inventory management method 

21 under paragraph (1) for a particular fungible good 

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

24 throughout the fiscal year of such person. 

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


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

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

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

4 accessories, spare parts, or tools shall— 

5 (A) be treated as originating goods if the 

6 good is an originating good; and 

7 (B) be disregarded in determining whether 

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

10 change in tariff classification set forth in Annex 

11 6-A of the Agreement. 

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

13 only if— 

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

15 are classified with and not invoiced separately 

16 from the good; and 

17 (B) the quantities and value of the acces18 sories, spare parts, or tools are customary for 

19 the good. 

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

21 subject to a regional value-content requirement, the 

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

23 be taken into account as originating or nonorigi24 nating materials, as the case may be, in calculating 

25 the regional value-content of the good. 


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1 (i) PACKAGING MATERIALS AND CONTAINERS FOR

2 RETAIL SALE.—Packaging materials and containers in 

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

4 the good, shall be disregarded in determining whether all 

5 the nonoriginating materials used in the production of the 

6 good undergo the applicable change in tariff classification 

7 set forth in Annex 4-A or Annex 6-A of the Agreement, 

8 and, if the good is subject to a regional value-content re9 quirement, the value of such packaging materials and con10 tainers shall be taken into account as originating or non11 originating materials, as the case may be, in calculating 

12 the regional value-content of the good. 

13 (j) PACKING MATERIALS AND CONTAINERS FOR

14 SHIPMENT.—Packing materials and containers for ship15 ment shall be disregarded in determining whether a good 

16 is an originating good. 

17 (k) INDIRECT MATERIALS.—An indirect material 

18 shall be disregarded in determining whether a good is an 

19 originating good. 

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

21 undergone production necessary to qualify as an origi22 nating good under subsection (b) shall not be considered 

23 to be an originating good if, subsequent to that produc24 tion, the good— 


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1 (1) undergoes further production or any other 

2 operation outside the territory of Korea or the 

3 United States, other than unloading, reloading, or 

4 any other operation necessary to preserve the good 

5 in good condition or to transport the good to the ter6 ritory of Korea or the United States; or 

7 (2) does not remain under the control of cus8 toms authorities in the territory of a country other 

9 than Korea or the United States. 

10 (m) GOODS CLASSIFIABLE AS GOODS PUT UP IN

11 SETS.—Notwithstanding the rules set forth in Annex 4- 

12 A and Annex 6-A of the Agreement, goods classifiable as 

13 goods put up in sets for retail sale as provided for in Gen14 eral Rule of Interpretation 3 of the HTS shall not be con15 sidered to be originating goods unless— 

16 (1) each of the goods in the set is an origi17 nating good; or 

18 (2) the total value of the nonoriginating goods 

19 in the set does not exceed— 

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

21 10 percent of the adjusted value of the set; or 

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

23 or apparel goods, 15 percent of the adjusted 

24 value of the set. 

25 (n) DEFINITIONS.—In this section: 


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

2 value’’ means the value determined in accordance 

3 with Articles 1 through 8, Article 15, and the cor4 responding interpretive notes, of the Agreement on 

5 Implementation of Article VII of the General Agree6 ment on Tariffs and Trade 1994 referred to in sec7 tion 101(d)(8) of the Uruguay Round Agreements 

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

9 to exclude any costs, charges, or expenses incurred 

10 for transportation, insurance, and related services 

11 incident to the international shipment of the mer12 chandise from the country of exportation to the 

13 place of importation. 

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

15 ‘‘class of motor vehicles’’ means any one of the fol16 lowing categories of motor vehicles: 

17 (A) Motor vehicles provided for in sub18 heading 8701.20, 8704.10, 8704.22, 8704.23, 

19 8704.32, or 8704.90, or heading 8705 or 8706, 

20 or motor vehicles for the transport of 16 or 

21 more persons provided for in subheading 

22 8702.10 or 8702.90. 

23 (B) Motor vehicles provided for in sub24 heading 8701.10 or any of subheadings 

25 8701.30 through 8701.90. 


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1 (C) Motor vehicles for the transport of 15 

2 or fewer persons provided for in subheading 

3 8702.10 or 8702.90, or motor vehicles provided 

4 for in subheading 8704.21 or 8704.31. 

5 (D) Motor vehicles provided for in any of 

6 subheadings 8703.21 through 8703.90. 

7 (3) FUNGIBLE GOOD OR FUNGIBLE MATE8 RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate9 rial’’ means a good or material, as the case may be, 

10 that is interchangeable with another good or mate11 rial for commercial purposes and the properties of 

12 which are essentially identical to such other good or 

13 material. 

14 (4) GENERALLY ACCEPTED ACCOUNTING PRIN15 CIPLES.—The term ‘‘generally accepted accounting 

16 principles’’— 

17 (A) means the recognized consensus or 

18 substantial authoritative support given in the 

19 territory of Korea or the United States, as the 

20 case may be, with respect to the recording of 

21 revenues, expenses, costs, assets, and liabilities, 

22 the disclosure of information, and the prepara23 tion of financial statements; and 


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1 (B) may encompass broad guidelines for 

2 general application as well as detailed stand3 ards, practices, and procedures. 

4 (5) GOOD WHOLLY OBTAINED OR PRODUCED

5 ENTIRELY IN THE TERRITORY OF KOREA, THE

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

7 obtained or produced entirely in the territory of 

8 Korea, the United States, or both’’ means any of the 

9 following: 

10 (A) Plants and plant products grown, and 

11 harvested or gathered, in the territory of Korea, 

12 the United States, or both. 

13 (B) Live animals born and raised in the 

14 territory of Korea, the United States, or both. 

15 (C) Goods obtained in the territory of 

16 Korea, the United States, or both from live ani17 mals. 

18 (D) Goods obtained from hunting, trap19 ping, fishing, or aquaculture conducted in the 

20 territory of Korea, the United States, or both. 

21 (E) Minerals and other natural resources 

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

23 that are extracted or taken from the territory 

24 of Korea, the United States, or both. 


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

2 taken from the sea, seabed, or subsoil outside 

3 the territory of Korea or the United States 

4 by— 

5 (i) a vessel that is registered or re6 corded with Korea and flying the flag of 

7 Korea; or 

8 (ii) a vessel that is documented under 

9 the laws of the United States. 

10 (G) Goods produced on board a factory 

11 ship from goods referred to in subparagraph 

12 (F), if such factory ship— 

13 (i) is registered or recorded with 

14 Korea and flies the flag of Korea; or 

15 (ii) is a vessel that is documented 

16 under the laws of the United States. 

17 (H)(i) Goods taken by Korea or a person 

18 of Korea from the seabed or subsoil outside the 

19 territory of Korea, the United States, or both, 

20 if Korea has rights to exploit such seabed or 

21 subsoil; or 

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

23 person of the United States from the seabed or 

24 subsoil outside the territory of the United 


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1 States, Korea, or both, if the United States has 

2 rights to exploit such seabed or subsoil. 

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

4 goods are obtained by Korea or the United 

5 States or a person of Korea or the United 

6 States and not processed in the territory of a 

7 country other than Korea or the United States. 

8 (J) Waste and scrap derived from— 

9 (i) manufacturing or processing oper10 ations in the territory of Korea, the United 

11 States, or both; or 

12 (ii) used goods collected in the terri13 tory of Korea, the United States, or both, 

14 if such goods are fit only for the recovery 

15 of raw materials. 

16 (K) Recovered goods derived in the terri17 tory of Korea, the United States, or both, from 

18 used goods, and used in the territory of Korea, 

19 the United States, or both, in the production of 

20 remanufactured goods. 

21 (L) Goods, at any stage of production, pro22 duced in the territory of Korea, the United 

23 States, or both, exclusively from— 

24 (i) goods referred to in any of sub25 paragraphs (A) through (J); or 


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1 (ii) the derivatives of goods referred 

2 to in clause (i). 

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

4 goods’’ means goods that are the same in all re5 spects relevant to the rule of origin that qualifies the 

6 goods as originating goods. 

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

8 material’’ means a good used in the production, test9 ing, or inspection of another good but not physically 

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

11 the maintenance of buildings or the operation of 

12 equipment associated with the production of another 

13 good, including— 

14 (A) fuel and energy; 

15 (B) tools, dies, and molds; 

16 (C) spare parts and materials used in the 

17 maintenance of equipment or buildings; 

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

20 or used to operate equipment or buildings; 

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

22 safety equipment, and supplies; 

23 (F) equipment, devices, and supplies used 

24 for testing or inspecting the good; 

25 (G) catalysts and solvents; and 


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1 (H) any other good that is not incor2 porated into the other good but the use of 

3 which in the production of the other good can 

4 reasonably be demonstrated to be a part of that 

5 production. 

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

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

8 including a part or an ingredient. 

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

10 term ‘‘material that is self-produced’’ means an orig11 inating material that is produced by a producer of 

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

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

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

15 of motor vehicles having the same platform or model 

16 name. 

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

18 total cost minus sales promotion, marketing, and 

19 after-sales service costs, royalties, shipping and 

20 packing costs, and non-allowable interest costs that 

21 are included in the total cost. 

22 (12) NONALLOWABLE INTEREST COSTS.—The 

23 term ‘‘nonallowable interest costs’’ means interest 

24 costs incurred by a producer that exceed 700 basis 

25 points above the applicable official interest rate for 


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1 comparable maturities of the country in which the 

2 producer is located. 

3 (13) NONORIGINATING GOOD OR NONORIGI4 NATING MATERIAL.—The term ‘‘nonoriginating 

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

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

7 as originating under this section. 

8 (14) PACKING MATERIALS AND CONTAINERS

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

10 containers for shipment’’ means goods used to pro11 tect another good during its transportation and does 

12 not include the packaging materials and containers 

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

14 (15) PREFERENTIAL TARIFF TREATMENT.— 

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

16 customs duty rate, and the treatment under article 

17 2.10.4 of the Agreement, that are applicable to an 

18 originating good pursuant to the Agreement. 

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

20 a person who engages in the production of a good 

21 in the territory of Korea or the United States. 

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

23 means growing, mining, harvesting, fishing, breed24 ing, raising, trapping, hunting, manufacturing, proc25 essing, assembling, or disassembling a good. 


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1 (18) REASONABLY ALLOCATE.—The term ‘‘rea2 sonably allocate’’ means to apportion in a manner 

3 that would be appropriate under generally accepted 

4 accounting principles. 

5 (19) RECOVERED GOODS.—The term ‘‘recov6 ered goods’’ means materials in the form of indi7 vidual parts that are the result of— 

8 (A) the disassembly of used goods into in9 dividual parts; and 

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

11 other processing that is necessary for improve12 ment to sound working condition of such indi13 vidual parts. 

14 (20) REMANUFACTURED GOOD.—The term ‘‘re15 manufactured good’’ means a good that is classified 

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

17 and that— 

18 (A) is entirely or partially comprised of re19 covered goods; and 

20 (B) has a similar life expectancy and en21 joys a factory warranty similar to such a good 

22 that is new. 

23 (21) TOTAL COST.— 

24 (A) IN GENERAL.—The term ‘‘total 

25 cost’’— 


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1 (i) means all product costs, period 

2 costs, and other costs for a good incurred 

3 in the territory of Korea, the United 

4 States, or both; and 

5 (ii) does not include profits that are 

6 earned by the producer, regardless of 

7 whether they are retained by the producer 

8 or paid out to other persons as dividends, 

9 or taxes paid on those profits, including 

10 capital gains taxes. 

11 (B) OTHER DEFINITIONS.—In this para12 graph: 

13 (i) PRODUCT COSTS.—The term 

14 ‘‘product costs’’ means costs that are asso15 ciated with the production of a good and 

16 include the value of materials, direct labor 

17 costs, and direct overhead. 

18 (ii) PERIOD COSTS.—The term ‘‘pe19 riod costs’’ means costs, other than prod20 uct costs, that are expensed in the period 

21 in which they are incurred, such as selling 

22 expenses and general and administrative 

23 expenses. 

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

25 costs’’ means all costs recorded on the 


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1 books of the producer that are not product 

2 costs or period costs, such as interest. 

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

4 or consumed in the production of goods. 

5 (o) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

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

7 to proclaim, as part of the HTS— 

8 (A) the provisions set forth in Annex 4-A 

9 and Annex 6-A of the Agreement; and 

10 (B) any additional subordinate category 

11 that is necessary to carry out this title con12 sistent with the Agreement. 

13 (2) MODIFICATIONS.— 

14 (A) IN GENERAL.—Subject to the consulta15 tion and layover provisions of section 104, the 

16 President may proclaim modifications to the 

17 provisions proclaimed under the authority of 

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

19 chapters 50 through 63 (as included in Annex 

20 4-A of the Agreement). 

21 (B) ADDITIONAL PROCLAMATIONS.—Not22 withstanding subparagraph (A), and subject to 

23 the consultation and layover provisions of sec24 tion 104, the President may proclaim— 


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1 (i) such modifications to the provi2 sions proclaimed under the authority of 

3 paragraph (1)(A) as are necessary to im4 plement an agreement with Korea pursu5 ant to article 4.2.5 of the Agreement; and 

6 (ii) before the end of the 1-year period 

7 beginning on the date on which the Agree8 ment enters into force, modifications to 

9 correct any typographical, clerical, or other 

10 nonsubstantive technical error regarding 

11 the provisions of chapters 50 through 63 

12 (as included in Annex 4-A of the Agree13 ment). 

14 (3) FIBERS, YARNS, OR FABRICS NOT AVAIL15 ABLE IN COMMERCIAL QUANTITIES IN THE UNITED

16 STATES.— 

17 (A) IN GENERAL.—Notwithstanding para18 graph (2)(A), the list of fibers, yarns, and fab19 rics set forth in the list of the United States in 

20 Appendix 4-B-1 of the Agreement may be modi21 fied as provided for in this paragraph. 

22 (B) DEFINITIONS.—In this paragraph: 

23 (i) INTERESTED ENTITY.—The term 

24 ‘‘interested entity’’ means the Government 

25 of Korea, a potential or actual purchaser 


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1 of a textile or apparel good, or a potential 

2 or actual supplier of a textile or apparel 

3 good. 

4 (ii) DAY; DAYS.—All references to 

5 ‘‘day’’ and ‘‘days’’ exclude Saturdays, Sun6 days, and legal holidays observed by the 

7 Government of the United States. 

8 (C) REQUESTS TO ADD FIBERS, YARNS, OR

9 FABRICS.— 

10 (i) IN GENERAL.—An interested entity 

11 may request the President to determine 

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

13 in commercial quantities in a timely man14 ner in the United States and to add that 

15 fiber, yarn, or fabric to the list of the 

16 United States in Appendix 4-B-1 of the 

17 Agreement. 

18 (ii) DETERMINATION.—After receiving 

19 a request under clause (i), the President 

20 may determine whether— 

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

22 available in commercial quantities in a 

23 timely manner in the United States; 

24 or 


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1 (II) any interested entity objects 

2 to the request. 

3 (iii) PROCLAMATION AUTHORITY.— 

4 The President may, within the time peri5 ods specified in clause (iv), proclaim that 

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

7 of the request is added to the list of the 

8 United States in Appendix 4-B-1 of the 

9 Agreement, if the President has deter10 mined under clause (ii) that— 

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

12 not available in commercial quantities 

13 in a timely manner in the United 

14 States; or 

15 (II) no interested entity has ob16 jected to the request. 

17 (iv) TIME PERIODS.—The time peri18 ods within which the President may issue 

19 a proclamation under clause (iii) are— 

20 (I) not later than 30 days after 

21 the date on which a request is sub22 mitted under clause (i); or 

23 (II) not later than 60 days after 

24 the request is submitted, if the Presi25 dent determines, within 30 days after 


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1 the date on which the request is sub2 mitted, that the President does not 

3 have sufficient information to make a 

4 determination under clause (ii). 

5 (v) EFFECTIVE DATE.—Notwith6 standing section 103(a)(2), a proclamation 

7 made under clause (iii) shall take effect on 

8 the date on which the text of the proclama9 tion is published in the Federal Register. 

10 (D) DEEMED DENIAL OF REQUEST.—If, 

11 after an interested entity submits a request 

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

13 not, within 30 days of the expiration of the ap14 plicable time period specified in subparagraph 

15 (C)(iv), make a determination under subpara16 graph (C)(ii) regarding the request, the request 

17 shall be considered to be denied. 

18 (E) REQUESTS TO REMOVE FIBERS, 

19 YARNS, OR FABRICS.— 

20 (i) IN GENERAL.—An interested entity 

21 may request the President to remove from 

22 the list of the United States in Appendix 

23 4-B-1 of the Agreement, any fiber, yarn, or 

24 fabric that has been added to that list pur25 suant to subparagraph (C)(iii). 


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1 (ii) PROCLAMATION AUTHORITY.—Not 

2 later than 30 days after the date on which 

3 a request under clause (i) is submitted, the 

4 President may proclaim that the fiber, 

5 yarn, or fabric that is the subject of the re6 quest is removed from the list of the 

7 United States in Appendix 4-B-1 of the 

8 Agreement if the President determines 

9 that the fiber, yarn, or fabric is available 

10 in commercial quantities in a timely man11 ner in the United States. 

12 (iii) EFFECTIVE DATE.—A proclama13 tion issued under clause (ii) may not take 

14 effect earlier than the date that is 6 

15 months after the date on which the text of 

16 the proclamation is published in the Fed17 eral Register. 

18 (F) PROCEDURES.—The President shall 

19 establish procedures— 

20 (i) governing the submission of a re21 quest under subparagraphs (C) and (E); 

22 and 

23 (ii) providing an opportunity for inter24 ested entities to submit comments and sup25 porting evidence before the President 


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1 makes a determination under subpara2 graph (C)(ii) or (E)(ii). 

3 SEC. 203. CUSTOMS USER FEES. 

4 Section 13031(b) of the Consolidated Omnibus Budg5 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

6 amended by adding after paragraph (18) the following: 

7 ‘‘(19) No fee may be charged under subsection (a) 

8 (9) or (10) with respect to goods that qualify as origi9 nating goods under section 202 of the United States– 

10 Korea Free Trade Agreement Implementation Act. Any 

11 service for which an exemption from such fee is provided 

12 by reason of this paragraph may not be funded with 

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

14 SEC. 204. DISCLOSURE OF INCORRECT INFORMATION; 

15 FALSE CERTIFICATIONS OF ORIGIN; DENIAL 

16 OF PREFERENTIAL TARIFF TREATMENT. 

17 (a) DISCLOSURE OF INCORRECT INFORMATION.— 

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

19 is amended— 

20 (1) in subsection (c)— 

21 (A) by redesignating paragraph (11) as 

22 paragraph (12); and 

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

24 following new paragraph: 


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1 ‘‘(11) PRIOR DISCLOSURE REGARDING CLAIMS

2 UNDER THE UNITED STATES–KOREA FREE TRADE

3 AGREEMENT.—An importer shall not be subject to 

4 penalties under subsection (a) for making an incor5 rect claim that a good qualifies as an originating 

6 good under section 202 of the United States–Korea 

7 Free Trade Agreement Implementation Act if the 

8 importer, in accordance with regulations issued by 

9 the Secretary of the Treasury, promptly and volun10 tarily makes a corrected declaration and pays any 

11 duties owing with respect to that good.’’; and 

12 (2) by adding at the end the following new sub13 section: 

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

15 UNITED STATES–KOREA FREE TRADE AGREEMENT.— 

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

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

18 fraud, gross negligence, or negligence, in a KFTA 

19 certification of origin (as defined in section 508 of 

20 this Act) that a good exported from the United 

21 States qualifies as an originating good under the 

22 rules of origin provided for in section 202 of the 

23 United States–Korea Free Trade Agreement Imple24 mentation Act. The procedures and penalties of this 


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1 section that apply to a violation of subsection (a) 

2 also apply to a violation of this subsection. 

3 ‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF

4 INCORRECT INFORMATION.—No penalty shall be im5 posed under this subsection if, promptly after an ex6 porter or producer that issued a KFTA certification 

7 of origin has reason to believe that such certification 

8 contains or is based on incorrect information, the ex9 porter or producer voluntarily provides written no10 tice of such incorrect information to every person to 

11 whom the certification was issued. 

12 ‘‘(3) EXCEPTION.—A person shall not be con13 sidered to have violated paragraph (1) if— 

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

15 time it was provided in a KFTA certification of 

16 origin but was later rendered incorrect due to 

17 a change in circumstances; and 

18 ‘‘(B) the person promptly and voluntarily 

19 provides written notice of the change in cir20 cumstances to all persons to whom the person 

21 provided the certification.’’. 

22 (b) DENIAL OF PREFERENTIAL TARIFF TREAT23 MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C. 

24 1514) is amended by adding at the end the following new 

25 subsection: 


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1 ‘‘(j) DENIAL OF PREFERENTIAL TARIFF TREAT2 MENT UNDER THE UNITED STATES–KOREA FREE TRADE

3 AGREEMENT.—If U.S. Customs and Border Protection or 

4 U.S. Immigration and Customs Enforcement of the De5 partment of Homeland Security finds indications of a pat6 tern of conduct by an importer, exporter, or producer of 

7 false or unsupported representations that goods qualify 

8 under the rules of origin provided for in section 202 of 

9 the United States–Korea Free Trade Agreement Imple10 mentation Act, U.S. Customs and Border Protection, in 

11 accordance with regulations issued by the Secretary of the 

12 Treasury, may suspend preferential tariff treatment under 

13 the United States–Korea Free Trade Agreement Imple14 mentation Act to entries of identical goods covered by sub15 sequent representations by that importer, exporter, or pro16 ducer until U.S. Customs and Border Protection deter17 mines that representations of that person are in con18 formity with such section 202.’’. 

19 SEC. 205. RELIQUIDATION OF ENTRIES. 

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

21 1520(d)) is amended in the matter preceding paragraph 

22 (1)— 

23 (1) by striking ‘‘or’’; and 


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

2 section 202 of the United States–Korea Free Trade 

3 Agreement Implementation Act for which’’. 

4 SEC. 206. RECORDKEEPING REQUIREMENTS. 

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

6 1508) is amended— 

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

8 (j); 

9 (2) by inserting after subsection (h) the fol10 lowing new subsection: 

11 ‘‘(i) CERTIFICATIONS OF ORIGIN FOR GOODS EX12 PORTED UNDER THE UNITED STATES–KOREA FREE

13 TRADE AGREEMENT.— 

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

15 ‘‘(A) RECORDS AND SUPPORTING DOCU16 MENTS.—The term ‘records and supporting 

17 documents’ means, with respect to an exported 

18 good under paragraph (2), records and docu19 ments related to the origin of the good, includ20 ing— 

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

22 and payment for, the good; 

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

24 and payment for, all materials, including 


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1 indirect materials, used in the production 

2 of the good; and 

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

4 the form in which it was exported. 

5 ‘‘(B) KFTA CERTIFICATION OF ORIGIN.— 

6 The term ‘KFTA certification of origin’ means 

7 the certification established under article 6.15 

8 of the United States–Korea Free Trade Agree9 ment that a good qualifies as an originating 

10 good under such Agreement. 

11 ‘‘(2) EXPORTS TO KOREA.—Any person who 

12 completes and issues a KFTA certification of origin 

13 for a good exported from the United States shall 

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

15 promulgated by the Secretary of the Treasury, 

16 render for examination and inspection all records 

17 and supporting documents related to the origin of 

18 the good (including the certification or copies there19 of). 

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

21 issues a KFTA certification of origin shall keep the 

22 records and supporting documents relating to that 

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

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

25 and 


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

2 striking ‘‘(g), or (h)’’ and inserting ‘‘(g), (h), or (i)’’. 

3 SEC. 207. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

4 OR APPAREL GOODS. 

5 (a) ACTION DURING VERIFICATION.— 

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

7 Treasury requests the Government of Korea to con8 duct a verification pursuant to article 4.3 of the 

9 Agreement for purposes of making a determination 

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

11 Secretary to take appropriate action described in 

12 subsection (b) while the verification is being con13 ducted. 

14 (2) DETERMINATION.—A determination under 

15 this paragraph is a determination of the Secretary 

16 that— 

17 (A) an exporter or producer in Korea is 

18 complying with applicable customs laws, regula19 tions, procedures, requirements, and practices 

20 affecting trade in textile or apparel goods; or 

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

22 exported or produced by such exporter or pro23 ducer— 

24 (i) qualifies as an originating good 

25 under section 202, or 


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1 (ii) is a good of Korea, 

2 is accurate. 

3 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

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

5 (1) suspension of liquidation of the entry of any 

6 textile or apparel good exported or produced by the 

7 person that is the subject of a verification under 

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

9 subsection (a)(2)(A), in a case in which the request 

10 for verification was based on a reasonable suspicion 

11 of unlawful activity related to such goods; and 

12 (2) suspension of liquidation of the entry of a 

13 textile or apparel good for which a claim has been 

14 made that is the subject of a verification under sub15 section (a)(1) regarding a claim described in sub16 section (a)(2)(B). 

17 (c) ACTION WHEN INFORMATION IS INSUFFI18 CIENT.—If the Secretary of the Treasury determines that 

19 the information obtained within 12 months after making 

20 a request for a verification under subsection (a)(1) is in21 sufficient to make a determination under subsection 

22 (a)(2), the President may direct the Secretary to take ap23 propriate action described in subsection (d) until such 

24 time as the Secretary receives information sufficient to 


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

2 such earlier date as the President may direct. 

3 (d) APPROPRIATE ACTION DESCRIBED.—Appro4 priate action under subsection (c) includes— 

5 (1) denial of preferential tariff treatment under 

6 the Agreement with respect to— 

7 (A) any textile or apparel good exported or 

8 produced by the person that is the subject of a 

9 verification under subsection (a)(1) regarding 

10 compliance described in subsection (a)(2)(A); or 

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

12 claim has been made that is the subject of a 

13 verification under subsection (a)(1) regarding a 

14 claim described in subsection (a)(2)(B); and 

15 (2) denial of entry into the United States of— 

16 (A) any textile or apparel good exported or 

17 produced by the person that is the subject of a 

18 verification under subsection (a)(1) regarding 

19 compliance described in subsection (a)(2)(A); or 

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

21 claim has been made that is the subject of a 

22 verification under subsection (a)(1) regarding a 

23 claim described in subsection (a)(2)(B). 

24 (e) PUBLICATION OF NAME OF PERSON.—In accord25 ance with article 4.3.11 of the Agreement, the Secretary 


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

2 the Secretary has determined— 

3 (1) is engaged in circumvention of applicable 

4 laws, regulations, or procedures affecting trade in 

5 textile or apparel goods; or 

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

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

8 (f) CERTIFICATE OF ELIGIBILITY.—The Commis9 sioner responsible for U.S. Customs and Border Protec10 tion of the Department of Homeland Security may require 

11 an importer to submit at the time the importer files a 

12 claim for preferential tariff treatment under Annex 4-B 

13 of the Agreement a certificate of eligibility, properly com14 pleted and signed by an authorized official of the Govern15 ment of Korea. 

16 (g) VERIFICATIONS IN THE UNITED STATES.—If the 

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

18 agreement with the United States makes a request for a 

19 verification pursuant to that agreement, the Secretary of 

20 the Treasury may request a verification of the production 

21 of any textile or apparel good in order to assist that gov22 ernment in determining whether— 

23 (1) a claim of origin under the agreement for 

24 a textile or apparel good is accurate; or 


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1 (2) an exporter, producer, or other enterprise 

2 located in the United States involved in the move3 ment of textile or apparel goods from the United 

4 States to the territory of the requesting government 

5 is complying with applicable customs laws, regula6 tions, and procedures regarding trade in textile or 

7 apparel goods. 

8 SEC. 208. REGULATIONS. 

9 The Secretary of the Treasury shall prescribe such 

10 regulations as may be necessary to carry out— 

11 (1) subsections (a) through (n) of section 202; 

12 (2) the amendment made by section 203; and 

13 (3) any proclamation issued under section 

14 202(o). 

15 TITLE III—RELIEF FROM 

16 IMPORTS 

17 SEC. 301. DEFINITIONS. 

18 In this title: 

19 (1) KOREAN ARTICLE.—The term ‘‘Korean arti20 cle’’ means an article that qualifies as an originating 

21 good under section 202(b). 

22 (2) KOREAN MOTOR VEHICLE ARTICLE.—The 

23 term ‘‘Korean motor vehicle article’’ means a good 

24 provided for in heading 8703 or 8704 of the HTS 


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1 that qualifies as an originating good under section 

2 202(b). 

3 (3) KOREAN TEXTILE OR APPAREL ARTICLE.— 

4 The term ‘‘Korean textile or apparel article’’ means 

5 a textile or apparel good (as defined in section 3(5)) 

6 that is a Korean article. 

7 Subtitle A—Relief From Imports 

8 Benefitting From the Agreement 

9 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

10 (a) FILING OF PETITION.— 

11 (1) IN GENERAL.—A petition requesting action 

12 under this subtitle for the purpose of adjusting to 

13 the obligations of the United States under the 

14 Agreement may be filed with the Commission by an 

15 entity, including a trade association, firm, certified 

16 or recognized union, or group of workers, that is 

17 representative of an industry. The Commission shall 

18 transmit a copy of any petition filed under this sub19 section to the United States Trade Representative. 

20 (2) PROVISIONAL RELIEF.—An entity filing a 

21 petition under this subsection may request that pro22 visional relief be provided as if the petition had been 

23 filed under section 202(a) of the Trade Act of 1974 

24 (19 U.S.C. 2252(a)). 


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1 (3) CRITICAL CIRCUMSTANCES.—Any allegation 

2 that critical circumstances exist shall be included in 

3 the petition. 

4 (b) INVESTIGATION AND DETERMINATION.—Upon 

5 the filing of a petition under subsection (a), the Commis6 sion, unless subsection (d) applies, shall promptly initiate 

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

8 reduction or elimination of a duty provided for under the 

9 Agreement, a Korean article is being imported into the 

10 United States in such increased quantities, in absolute 

11 terms or relative to domestic production, and under such 

12 conditions that imports of the Korean article constitute 

13 a substantial cause of serious injury or threat thereof to 

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

15 directly competitive with, the imported article. 

16 (c) APPLICABLE PROVISIONS.—The following provi17 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

18 2252) apply with respect to any investigation initiated 

19 under subsection (b): 

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

21 (b). 

22 (2) Subsection (c). 

23 (3) Subsection (d). 

24 (4) 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 Korean article if, after the date on which 

4 the Agreement enters into force, import relief has been 

5 provided with respect to that Korean article under this 

6 subtitle. 

7 SEC. 312. COMMISSION ACTION ON PETITION. 

8 (a) DETERMINATION.—Not later than 120 days (180 

9 days if critical circumstances have been alleged) after the 

10 date on which an investigation is initiated under section 

11 311(b) with respect to a petition, the Commission shall 

12 make the determination required under that section. 

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

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

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

16 1330(d) (1), (2), and (3)) shall be applied with respect 

17 to determinations and findings made under this section 

18 as if such determinations and findings were made under 

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

20 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

21 DETERMINATION AFFIRMATIVE.— 

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

23 by the Commission under subsection (a) with respect 

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

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1 mission to be an affirmative determination as pro2 vided for under paragraph (1) of section 330(d) of 

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

4 Commission shall find, and recommend to the Presi5 dent in the report required under subsection (d), the 

6 amount of import relief that is necessary to remedy 

7 or prevent the injury found by the Commission in 

8 the determination and to facilitate the efforts of the 

9 domestic industry to make a positive adjustment to 

10 import competition. 

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

12 recommended by the Commission under this sub13 section shall be limited to the relief described in sec14 tion 313(c). 

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

16 members of the Commission who voted in the af17 firmative under subsection (a) are eligible to vote on 

18 the proposed action to remedy or prevent the injury 

19 found by the Commission. Members of the Commis20 sion who did not vote in the affirmative may submit, 

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

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

23 to remedy or prevent the injury. 

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

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1 tion is made under subsection (a) with respect to an inves2 tigation, the Commission shall submit to the President a 

3 report that includes— 

4 (1) the determination made under subsection 

5 (a) and an explanation of the basis for the deter6 mination; 

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

8 affirmative, any findings and recommendations for 

9 import relief made under subsection (c) and an ex10 planation of the basis for each recommendation; and 

11 (3) any dissenting or separate views by mem12 bers of the Commission regarding the determination 

13 referred to in paragraph (1) and any finding or rec14 ommendation referred to in paragraph (2). 

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

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

17 promptly make public the report (with the exception of 

18 information which the Commission determines to be con19 fidential) and shall publish a summary of the report in 

20 the Federal Register. 

21 SEC. 313. PROVISION OF RELIEF. 

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

23 30 days after the date on which the President receives a 

24 report of the Commission in which the Commission’s de25 termination under section 312(a) is affirmative, or which 


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

2 President considers to be affirmative under paragraph (1) 

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

4 1330(d)(1)), the President, subject to subsection (b), shall 

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

6 of such determination to the extent that the President de7 termines necessary to remedy or prevent the injury found 

8 by the Commission and to facilitate the efforts of the do9 mestic industry to make a positive adjustment to import 

10 competition. 

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

12 provide import relief under this section if the President 

13 determines that the provision of the import relief will not 

14 provide greater economic and social benefits than costs. 

15 (c) NATURE OF RELIEF.— 

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the import relief that the President is au18 thorized to provide under this section with respect to 

19 imports of an article is as follows: 

20 (A) The suspension of any further reduc21 tion provided for under Annex 2-B of the 

22 Agreement in the duty imposed on the article. 

23 (B) An increase in the rate of duty im24 posed on the article to a level that does not ex25 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) DUTIES APPLIED ON A SEASONAL BASIS.— 

9 In the case of imports of an article to which a duty 

10 is applied on a seasonal basis, the import relief that 

11 the President is authorized to provide under this 

12 section is as follows: 

13 (A) The suspension of any further reduc14 tion provided for under Annex 2-B of the 

15 Agreement in the duty imposed on the article. 

16 (B) An increase in the rate of duty im17 posed on the article to a level that does not ex18 ceed the lesser of— 

19 (i) the column 1 general rate of duty 

20 imposed under the HTS on like articles for 

21 the corresponding season immediately pre22 ceding the date the import relief is pro23 vided; or 

24 (ii) the column 1 general rate of duty 

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1 responding season immediately preceding 

2 the date on which the Agreement enters 

3 into force. 

4 (3) PROGRESSIVE LIBERALIZATION.—If the pe5 riod for which import relief is provided under this 

6 section is greater than 1 year, the President shall 

7 provide for the progressive liberalization (described 

8 in article 10.2.7 of the Agreement) of such relief at 

9 regular intervals during the period of its application. 

10 (d) PERIOD OF RELIEF.— 

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

12 any import relief that the President provides under 

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

14 years. 

15 (2) EXTENSION.— 

16 (A) IN GENERAL.—Subject to subpara17 graph (C), the President, after receiving a de18 termination from the Commission under sub19 paragraph (B) that is affirmative, or which the 

20 President considers to be affirmative under 

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

22 Act of 1930 (19 U.S.C. 1330(d)(1)), may ex23 tend the effective period of any import relief 

24 provided under this section by up to 1 year, if 

25 the President determines that— 


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1 (i) the import relief continues to be 

2 necessary to remedy or prevent serious in3 jury and to facilitate adjustment by the do4 mestic industry to import competition; and 

5 (ii) there is evidence that the industry 

6 is making a positive adjustment to import 

7 competition. 

8 (B) ACTION BY COMMISSION.— 

9 (i) INVESTIGATION.—Upon a petition 

10 on behalf of the industry concerned that is 

11 filed with the Commission not earlier than 

12 the date that is 9 months, and not later 

13 than the date that is 6 months, before the 

14 date on which any action taken under sub15 section (a) is to terminate, the Commission 

16 shall conduct an investigation to determine 

17 whether action under this section continues 

18 to be necessary to remedy or prevent seri19 ous injury and whether there is evidence 

20 that the industry is making a positive ad21 justment to import competition. 

22 (ii) NOTICE AND HEARING.—The 

23 Commission shall publish notice of the 

24 commencement of any proceeding under 

25 this subparagraph in the Federal Register 


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1 and shall, within a reasonable time there2 after, hold a public hearing at which the 

3 Commission shall afford interested parties 

4 and consumers an opportunity to be 

5 present, to present evidence, and to re6 spond to the presentations of other parties 

7 and consumers, and otherwise to be heard. 

8 (iii) REPORT.—The Commission shall 

9 submit to the President a report on its in10 vestigation and determination under this 

11 subparagraph not later than 60 days be12 fore the action under subsection (a) is to 

13 terminate, unless the President specifies a 

14 different date. 

15 (C) PERIOD OF IMPORT RELIEF.—Any im16 port relief provided under this section, including 

17 any extensions thereof, may not, in the aggre18 gate, be in effect for more than 3 years. 

19 (e) RATE AFTER TERMINATION OF IMPORT RE20 LIEF.—Beginning on the date on which import relief 

21 under this section is terminated with respect to an article, 

22 the rate of duty on that article shall be the rate that would 

23 have been in effect but for the provision of such relief. 


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

2 relief may be provided under this section on any article 

3 that is subject to import relief under— 

4 (1) subtitle B or C; or 

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

6 1974 (19 U.S.C. 2251 et seq.). 

7 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

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

9 import relief may be provided under this subtitle after the 

10 date that is 10 years after the date on which the Agree11 ment enters into force. 

12 (b) EXCEPTION.—If an article for which relief is pro13 vided under this subtitle is an article for which the period 

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

15 United States to Annex 2-B of the Agreement, is greater 

16 than 10 years, no relief under this subtitle may be pro17 vided for that article after the date on which that period 

18 ends. 

19 (c) PRESIDENTIAL DETERMINATION.—Import relief 

20 may be provided under this subtitle in the case of a Ko21 rean article after the date on which such relief would, but 

22 for this subsection, terminate under subsection (a) and 

23 (b), if the President determines that Korea has consented 

24 to such relief. 


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1 SEC. 315. COMPENSATION AUTHORITY. 

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

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

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

6 et seq.). 

7 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

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

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

10 (1) by striking ‘‘and’’; and 

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

12 and title III of the United States–Korea Free Trade 

13 Agreement Implementation Act’’. 

14 Subtitle B—Motor Vehicle 

15 Safeguard Measures 

16 SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES. 

17 The provisions of subtitle A shall apply with respect 

18 to a Korean motor vehicle article to the same extent that 

19 such provisions apply to Korean articles, except as follows: 

20 (1) Section 311(d) and paragraphs (2) and (3) 

21 of 313(c) shall not apply. 

22 (2) Section 313(d)(2)(A) shall be applied and 

23 administered by substituting ‘‘2 years’’ for ‘‘1 year’’. 

24 (3) Section 313(d)(2)(C) shall be applied and 

25 administered by substituting ‘‘4 years’’ for ‘‘3 

26 years’’. 


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1 (4) Section 313(f)(1) shall be applied and ad2 ministered by substituting ‘‘subtitle A’’ for ‘‘subtitle 

3 B or C’’. 

4 (5) Section 314(b) shall be applied and admin5 istered as if such section read as follows: 

6 ‘‘(b) EXCEPTION.—Import relief may be provided 

7 under this subtitle with respect to a Korean motor vehicle 

8 article during any period before the date that is 10 years 

9 after the date on which duties on the article are elimi10 nated, as set forth in section 201(d), or, if the article is 

11 not referred to in section 201(d), the Schedule of the 

12 United States to Annex 2-B of the Agreement.’’. 

13 Subtitle C—Textile and Apparel 

14 Safeguard Measures 

15 SEC. 331. COMMENCEMENT OF ACTION FOR RELIEF. 

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

17 subtitle for the purpose of adjusting to the obligations of 

18 the United States under the Agreement may be filed with 

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

20 a request, the President shall review the request to deter21 mine, from information presented in the request, whether 

22 to commence consideration of the request. 

23 (b) PUBLICATION OF REQUEST.—If the President de24 termines that the request under subsection (a) provides 

25 the information necessary for the request to be considered, 


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1 the President shall publish in the Federal Register a no2 tice of commencement of consideration of the request, and 

3 notice seeking public comments regarding the request. The 

4 notice shall include a summary of the request and the 

5 dates by which comments and rebuttals must be received. 

6 SEC. 332. DETERMINATION AND PROVISION OF RELIEF. 

7 (a) DETERMINATION.— 

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

9 made under section 331(b), the President shall de10 termine whether, as a result of the reduction or 

11 elimination of a duty under the Agreement, a Ko12 rean textile or apparel article is being imported into 

13 the United States in such increased quantities, in 

14 absolute terms or relative to the domestic market for 

15 that article, and under such conditions as to cause 

16 serious damage, or actual threat thereof, to a domes17 tic industry producing an article that is like, or di18 rectly competitive with, the imported article. 

19 (2) SERIOUS DAMAGE.—In making a deter20 mination under paragraph (1), the President— 

21 (A) shall examine the effect of increased 

22 imports on the domestic industry, as reflected 

23 in changes in such relevant economic factors as 

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1 ployment, domestic prices, profits, and invest2 ment, no one of which is necessarily decisive; 

3 and 

4 (B) shall not consider changes in tech5 nology or consumer preference as factors sup6 porting a determination of serious damage or 

7 actual threat thereof. 

8 (b) PROVISION OF RELIEF.— 

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

10 subsection (a) is affirmative, the President may pro11 vide relief from imports of the article that is the 

12 subject of such determination, as provided in para13 graph (2), to the extent that the President deter14 mines necessary to remedy or prevent the serious 

15 damage and to facilitate adjustment by the domestic 

16 industry. 

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

18 President is authorized to provide under this sub19 section with respect to imports of an article is— 

20 (A) the suspension of any further reduc21 tion provided for under Annex 2-B of the 

22 Agreement in the duty imposed on the article; 

23 or 


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1 (B) an increase in the rate of duty im2 posed on the article to a level that does not ex3 ceed the lesser of— 

4 (i) the column 1 general rate of duty 

5 imposed under the HTS on like articles at 

6 the time the import relief is provided; or 

7 (ii) the column 1 general rate of duty 

8 imposed under the HTS on like articles on 

9 the day before the date on which the 

10 Agreement enters into force. 

11 SEC. 333. PERIOD OF RELIEF. 

12 (a) IN GENERAL.—Subject to subsection (b), the im13 port relief that the President provides under section 

14 332(b) may not be in effect for more than 2 years. 

15 (b) EXTENSION.— 

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

17 the President may extend the effective period of any 

18 import relief provided under this subtitle for a pe19 riod of not more than 2 years, if the President de20 termines that— 

21 (A) the import relief continues to be nec22 essary to remedy or prevent serious damage 

23 and to facilitate adjustment by the domestic in24 dustry to import competition; and 


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1 (B) there is evidence that the industry is 

2 making a positive adjustment to import com3 petition. 

4 (2) LIMITATION.—Any relief provided under 

5 this subtitle, including any extensions thereof, may 

6 not, in the aggregate, be in effect for more than 4 

7 years. 

8 SEC. 334. ARTICLES EXEMPT FROM RELIEF. 

9 The President may not provide import relief under 

10 this subtitle with respect to an article if— 

11 (1) import relief previously has been provided 

12 under this subtitle with respect to that article; or 

13 (2) the article is subject to import relief 

14 under— 

15 (A) subtitle A; or 

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

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

18 SEC. 335. RATE AFTER TERMINATION OF IMPORT RELIEF. 

19 On the date on which import relief under this subtitle 

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

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

22 effect but for the provision of such relief. 

23 SEC. 336. TERMINATION OF RELIEF AUTHORITY. 

24 No import relief may be provided under this subtitle 

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


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1 after the date on which duties on the article are eliminated 

2 pursuant to the Agreement. 

3 SEC. 337. COMPENSATION AUTHORITY. 

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

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

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

8 et seq.). 

9 SEC. 338. CONFIDENTIAL BUSINESS INFORMATION. 

10 The President may not release information received 

11 in connection with an investigation or determination under 

12 this subtitle which the President considers to be confiden13 tial business information unless the party submitting the 

14 confidential business information had notice, at the time 

15 of submission, that such information would be released by 

16 the President, or such party subsequently consents to the 

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

18 confidential business information, the party shall also pro19 vide a nonconfidential version of the information in which 

20 the confidential business information is summarized or, if 

21 necessary, deleted. 


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1 Subtitle D—Cases Under Title II of 

2 the Trade Act of 1974 

3 SEC. 341. FINDINGS AND ACTION ON KOREAN ARTICLES. 

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

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

6 1974 (19 U.S.C. 2251 et seq.), the Commission makes an 

7 affirmative determination (or a determination which the 

8 President may treat as an affirmative determination under 

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

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

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

12 determination is submitted to the President) whether im13 ports of the Korean article are a substantial cause of seri14 ous injury or threat thereof. 

15 (b) PRESIDENTIAL DETERMINATION REGARDING

16 KOREAN ARTICLES.—In determining the nature and ex17 tent of action to be taken under chapter 1 of title II of 

18 the Trade Act of 1974 (19 U.S.C. 2251 et seq.), the Presi19 dent may exclude from the action Korean articles with re20 spect to which the Commission has made a negative find21 ing under subsection (a). 

22 TITLE IV—PROCUREMENT 

23 SEC. 401. ELIGIBLE PRODUCTS. 

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

25 1979 (19 U.S.C. 2518(4)(A)) is amended— 


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

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

3 (vii) and inserting ‘‘; or’’; and 

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

5 clause: 

6 ‘‘(viii) a party to the United States– 

7 Korea Free Trade Agreement, a product or 

8 service of that country or instrumentality 

9 which is covered under that agreement for 

10 procurement by the United States.’’. 

11 TITLE V—OFFSETS 

12 SEC. 501. INCREASE IN PENALTY ON PAID PREPARERS WHO 

13 FAIL TO COMPLY WITH EARNED INCOME TAX 

14 CREDIT DUE DILIGENCE REQUIREMENTS. 

15 (a) IN GENERAL.—Section 6695(g) of the Internal 

16 Revenue Code of 1986 is amended by striking ‘‘$100’’ and 

17 inserting ‘‘$500’’. 

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

19 this section shall apply to returns required to be filed after 

20 December 31, 2011. 

21 SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE 

22 UNITED STATES TO PROVIDE INFORMATION 

23 FOR TAX ADMINISTRATION. 

24 (a) IN GENERAL.—Subchapter B of chapter 61 of the 

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1 nating section 6116 as section 6117 and by inserting after 

2 section 6115 the following new section: 

3 ‘‘SEC. 6116. REQUIREMENT FOR PRISONS LOCATED IN 

4 UNITED STATES TO PROVIDE INFORMATION 

5 FOR TAX ADMINISTRATION. 

6 ‘‘(a) IN GENERAL.—Not later than September 15, 

7 2012, and annually thereafter, the head of the Federal 

8 Bureau of Prisons and the head of any State agency 

9 charged with the responsibility for administration of pris10 ons shall provide to the Secretary in electronic format a 

11 list with the information described in subsection (b) of all 

12 the inmates incarcerated within the prison system for any 

13 part of the prior 2 calendar years or the current calendar 

14 year through August 31. 

15 ‘‘(b) INFORMATION.—The information with respect 

16 to each inmate is— 

17 ‘‘(1) first, middle, and last name, 

18 ‘‘(2) date of birth, 

19 ‘‘(3) institution of current incarceration or, for 

20 released inmates, most recent incarceration, 

21 ‘‘(4) prison assigned inmate number, 

22 ‘‘(5) the date of incarceration, 

23 ‘‘(6) the date of release or anticipated date of 

24 release, 

25 ‘‘(7) the date of work release, 


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1 ‘‘(8) taxpayer identification number and wheth2 er the prison has verified such number, 

3 ‘‘(9) last known address, and 

4 ‘‘(10) any additional information as the Sec5 retary may request. 

6 ‘‘(c) FORMAT.—The Secretary shall determine the 

7 electronic format of the information described in sub8 section (b).’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for such subchapter is amended by striking the item relat11 ing to section 6116 and by adding at the end the following 

12 new items: 

‘‘Sec. 6116. Requirement for prisons located in United States to provide information for tax administration. 

‘‘Sec. 6117. Cross reference.’’. 

13 SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES. 

14 For the period beginning on December 1, 2015, and 

15 ending on June 30, 2021, section 13031(a)(9) of the Con16 solidated Omnibus Budget Reconciliation Act of 1985 (19 

17 U.S.C. 58c(a)(9)) shall be applied and administered— 

18 (1) in subparagraph (A), by substituting 

19 ‘‘0.3464’’ for ‘‘0.21’’; and 

20 (2) in subparagraph (B)(i), by substituting 

21 ‘‘0.3464’’ for ‘‘0.21’’. 

22 SEC. 504. EXTENSION OF CUSTOMS USER FEES. 

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

24 Consolidated Omnibus Budget Reconciliation Act of 1985 


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1 (19 U.S.C. 58c(j)(3)(A)) is amended by striking ‘‘January 

2 7, 2020’’ and inserting ‘‘August 2, 2021’’. 

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

4 Consolidated Omnibus Budget Reconciliation Act of 1985 

5 (19 U.S.C. 58c(j)(3)(B)(i)) is amended by striking ‘‘Janu6 ary 14, 2020’’ and inserting ‘‘December 8, 2020’’. 

7 SEC. 505. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

8 TAXES. 

9 Notwithstanding section 6655 of the Internal Rev10 enue Code of 1986, in the case of a corporation with assets 

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

12 of the preceding taxable year)— 

13 (1) the amount of any required installment of 

14 corporate estimated tax which is otherwise due in 

15 July, August, or September of 2012 shall be in16 creased by 0.25 percent of such amount (determined 

17 without regard to any increase in such amount not 

18 contained in such Code); 

19 (2) the amount of any required installment of 

20 corporate estimated tax which is otherwise due in 

21 July, August, or September of 2016 shall be in22 creased by 2.75 percent of such amount (determined 

23 without regard to any increase in such amount not 

24 contained in such Code); and 


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1 (3) the amount of the next required installment 

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

3 (2) shall be appropriately reduced to reflect the 

4 amount of the increase by reason of such paragraph. 

Æ 


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