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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3079 Enrolled Bill (ENR)]

        H.R.3079

                      One Hundred Twelfth Congress

                                 of the

                        United States of America

                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
            the fifth day of January, two thousand and eleven

                                 An Act

 
    To implement the United States-Panama Trade Promotion Agreement.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``United States-
Panama Trade Promotion Agreement Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

 TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and 
          initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date 
          of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Disclosure of incorrect information; false certifications of 
          origin; denial of preferential tariff treatment.
Sec. 206. Reliquidation of entries.
Sec. 207. Recordkeeping requirements.
Sec. 208. Enforcement relating to trade in textile or apparel goods.
Sec. 209. Regulations.

                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.

     Subtitle A--Relief From Imports Benefitting From the Agreement

Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.

           Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.

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

Sec. 331. Findings and action on Panamanian articles.

                         TITLE IV--MISCELLANEOUS

Sec. 401. Eligible products.
Sec. 402. Modification to the Caribbean Basin Economic Recovery Act.

                            TITLE V--OFFSETS

Sec. 501. Extension of customs user fees.
Sec. 502. Time for payment of corporate estimated taxes.
SEC. 2. PURPOSES.
    The purposes of this Act are--
        (1) to approve and implement the free trade agreement between 
    the United States and Panama entered into under the authority of 
    section 2103(b) of the Bipartisan Trade Promotion Authority Act of 
    2002 (19 U.S.C. 3803(b));
        (2) to strengthen and develop economic relations between the 
    United States and Panama for their mutual benefit;
        (3) to establish free trade between the United States and 
    Panama through the reduction and elimination of barriers to trade 
    in goods and services and to investment; and
        (4) to lay the foundation for further cooperation to expand and 
    enhance the benefits of the Agreement.
SEC. 3. DEFINITIONS.
    In this Act:
        (1) Agreement.--The term ``Agreement'' means the United States-
    Panama Trade Promotion Agreement approved by Congress under section 
    101(a)(1).
        (2) Commission.--The term ``Commission'' means the United 
    States International Trade Commission.
        (3) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule 
    of the United States.
        (4) Textile or apparel good.--The term ``textile or apparel 
    good'' means a good listed in the Annex to the Agreement on 
    Textiles and Clothing referred to in section 101(d)(4) of the 
    Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other than a 
    good listed in Annex 3.30 of the Agreement.

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

    SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority 
Act of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 
(19 U.S.C. 2191), Congress approves--
        (1) the United States-Panama Trade Promotion Agreement entered 
    into on June 28, 2007, with the Government of Panama and submitted 
    to Congress on October 3, 2011; and
        (2) the statement of administrative action proposed to 
    implement the Agreement that was submitted to Congress on October 
    3, 2011.
    (b) Conditions for Entry Into Force of the Agreement.--At such time 
as the President determines that Panama has taken measures necessary to 
comply with those provisions of the Agreement that are to take effect 
on the date on which the Agreement enters into force, the President is 
authorized to exchange notes with the Government of Panama providing 
for the entry into force, on or after January 1, 2012, of the Agreement 
with respect to the United States.
    SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE 
      LAW.
    (a) Relationship of Agreement to United States Law.--
        (1) United states law to prevail in conflict.--No provision of 
    the Agreement, nor the application of any such provision to any 
    person or circumstance, which is inconsistent with any law of the 
    United States shall have effect.
        (2) Construction.--Nothing in this Act shall be construed--
            (A) to amend or modify any law of the United States, or
            (B) to limit any authority conferred under any law of the 
        United States,
    unless specifically provided for in this Act.
    (b) Relationship of Agreement to State Law.--
        (1) Legal challenge.--No State law, or the application thereof, 
    may be declared invalid as to any person or circumstance on the 
    ground that the provision or application is inconsistent with the 
    Agreement, except in an action brought by the United States for the 
    purpose of declaring such law or application invalid.
        (2) Definition of state law.--For purposes of this subsection, 
    the term ``State law'' includes--
            (A) any law of a political subdivision of a State; and
            (B) any State law regulating or taxing the business of 
        insurance.
    (c) Effect of Agreement With Respect to Private Remedies.--No 
person other than the United States--
        (1) shall have any cause of action or defense under the 
    Agreement or by virtue of congressional approval thereof; or
        (2) may challenge, in any action brought under any provision of 
    law, any action or inaction by any department, agency, or other 
    instrumentality of the United States, any State, or any political 
    subdivision of a State, on the ground that such action or inaction 
    is inconsistent with the Agreement.
    SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE 
      AND INITIAL REGULATIONS.
    (a) Implementing Actions.--
        (1) Proclamation authority.--After the date of the enactment of 
    this Act--
            (A) the President may proclaim such actions, and
            (B) other appropriate officers of the United States 
        Government may issue such regulations,
    as may be necessary to ensure that any provision of this Act, or 
    amendment made by this Act, that takes effect on the date on which 
    the Agreement enters into force is appropriately implemented on 
    such date, but no such proclamation or regulation may have an 
    effective date earlier than the date on which the Agreement enters 
    into force.
        (2) Effective date of certain proclaimed actions.--Any action 
    proclaimed by the President under the authority of this Act that is 
    not subject to the consultation and layover provisions under 
    section 104 may not take effect before the 15th day after the date 
    on which the text of the proclamation is published in the Federal 
    Register.
        (3) Waiver of 15-day restriction.--The 15-day restriction 
    contained in paragraph (2) on the taking effect of proclaimed 
    actions is waived to the extent that the application of such 
    restriction would prevent the taking effect on the date the 
    Agreement enters into force of any action proclaimed under this 
    section.
    (b) Initial Regulations.--Initial regulations necessary or 
appropriate to carry out the actions required by or authorized under 
this Act or proposed in the statement of administrative action 
submitted under section 101(a)(2) to implement the Agreement shall, to 
the maximum extent feasible, be issued within 1 year after the date on 
which the Agreement enters into force. In the case of any implementing 
action that takes effect on a date after the date on which the 
Agreement enters into force, initial regulations to carry out that 
action shall, to the maximum extent feasible, be issued within 1 year 
after such effective date.
    SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE 
      DATE OF, PROCLAIMED ACTIONS.
    If a provision of this Act provides that the implementation of an 
action by the President by proclamation is subject to the consultation 
and layover requirements of this section, such action may be proclaimed 
only if--
        (1) the President has obtained advice regarding the proposed 
    action from--
            (A) the appropriate advisory committees established under 
        section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
            (B) the Commission;
        (2) the President has submitted to the Committee on Finance of 
    the Senate and the Committee on Ways and Means of the House of 
    Representatives a report that sets forth--
            (A) the action proposed to be proclaimed and the reasons 
        therefor; and
            (B) the advice obtained under paragraph (1);
        (3) a period of 60 calendar days, beginning on the first day on 
    which the requirements set forth in paragraphs (1) and (2) have 
    been met, has expired; and
        (4) the President has consulted with the committees referred to 
    in paragraph (2) regarding the proposed action during the period 
    referred to in paragraph (3).
    SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
    (a) Establishment or Designation of Office.--The President is 
authorized to establish or designate within the Department of Commerce 
an office that shall be responsible for providing administrative 
assistance to panels established under chapter 20 of the Agreement. The 
office shall not be considered to be an agency for purposes of section 
552 of title 5, United States Code.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 2011 to the 
Department of Commerce up to $150,000 for the establishment and 
operations of the office established or designated under subsection (a) 
and for the payment of the United States share of the expenses of 
panels established under chapter 20 of the Agreement.
    SEC. 106. ARBITRATION OF CLAIMS.
    The United States is authorized to resolve any claim against the 
United States covered by article 10.16.1(a)(i)(C) or article 
10.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 
Dispute Settlement procedures set forth in section B of chapter 10 of 
the Agreement.
    SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
    (a) Effective Dates.--Except as provided in subsection (b), this 
Act and the amendments made by this Act take effect on the date on 
which the Agreement enters into force.
    (b) Exceptions.--
        (1) In general.--Sections 1 through 3, this title, and title V 
    take effect on the date of the enactment of this Act.
        (2) Certain amendatory provisions.--The amendments made by 
    sections 204, 205, 207, and 401 of this Act take effect on the date 
    of the enactment of this Act and apply with respect to Panama on 
    the date on which the Agreement enters into force.
    (c) Termination of the Agreement.--On the date on which the 
Agreement terminates, this Act (other than this subsection and title V) 
and the amendments made by this Act (other than the amendments made by 
title V) shall cease to have effect.

                      TITLE II--CUSTOMS PROVISIONS

    SEC. 201. TARIFF MODIFICATIONS.
    (a) Tariff Modifications Provided for in the Agreement.--
        (1) Proclamation authority.--The President may proclaim--
            (A) such modifications or continuation of any duty,
            (B) such continuation of duty-free or excise treatment, or
            (C) such additional duties,
    as the President determines to be necessary or appropriate to carry 
    out or apply articles 3.3, 3.5, 3.6, 3.26, 3.27, 3.28, and 3.29, 
    and Annex 3.3, of the Agreement.
        (2) Effect on gsp status.--Notwithstanding section 502(a)(1) of 
    the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the President shall, 
    on the date on which the Agreement enters into force, terminate the 
    designation of Panama as a beneficiary developing country for 
    purposes of title V of the Trade Act of 1974 (19 U.S.C. 2461 et 
    seq.).
        (3) Effect on cbera status.--
            (A) In general.--Notwithstanding section 212(a) of the 
        Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)), the 
        President shall, on the date on which the Agreement enters into 
        force, terminate the designation of Panama as a beneficiary 
        country for purposes of that Act.
            (B) Exception.--Notwithstanding subparagraph (A), Panama 
        shall be considered a beneficiary country under section 212(a) 
        of the Caribbean Basin Economic Recovery Act, for purposes of--
                (i) sections 771(7)(G)(ii)(III) and 771(7)(H) of the 
            Tariff Act of 1930 (19 U.S.C. 1677(7)(G)(ii)(III) and 
            1677(7)(H));
                (ii) the duty-free treatment provided under paragraph 4 
            of the General Notes to the Schedule of the United States 
            to Annex 3.3 of the Agreement; and
                (iii) section 274(h)(6)(B) of the Internal Revenue Code 
            of 1986.
    (b) Other Tariff Modifications.--Subject to the consultation and 
layover provisions of section 104, the President may proclaim--
        (1) such modifications or continuation of any duty,
        (2) such modifications as the United States may agree to with 
    Panama regarding the staging of any duty treatment set forth in 
    Annex 3.3 of the Agreement,
        (3) such continuation of duty-free or excise treatment, or
        (4) such additional duties,
as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Panama provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections 
(a) and (b), with respect to any good for which the base rate in the 
Schedule of the United States to Annex 3.3 of the Agreement is a 
specific or compound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President determines to be 
equivalent to the base rate.
    (d) Tariff Rate Quotas.--In implementing the tariff rate quotas set 
forth in Appendix I to the General Notes to the Schedule of the United 
States to Annex 3.3 of the Agreement, the President shall take such 
action as may be necessary to ensure that imports of agricultural goods 
do not disrupt the orderly marketing of commodities in the United 
States.
    SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.
    (a) Definitions.--In this section:
        (1) Applicable ntr (mfn) rate of duty.--The term ``applicable 
    NTR (MFN) rate of duty'' means, with respect to a safeguard good, a 
    rate of duty equal to the lowest of--
            (A) the base rate in the Schedule of the United States to 
        Annex 3.3 of the Agreement;
            (B) the column 1 general rate of duty that would, on the 
        day before the date on which the Agreement enters into force, 
        apply to a good classifiable in the same 8-digit subheading of 
        the HTS as the safeguard good; or
            (C) the column 1 general rate of duty that would, at the 
        time the additional duty is imposed under subsection (b), apply 
        to a good classifiable in the same 8-digit subheading of the 
        HTS as the safeguard good.
        (2) Safeguard good.--The term ``safeguard good'' means a good--
            (A) that is included in the Schedule of the United States 
        to Annex 3.17 of the Agreement;
            (B) that qualifies as an originating good under section 
        203; and
            (C) for which a claim for preferential tariff treatment 
        under the Agreement has been made.
        (3) Schedule rate of duty.--The term ``schedule rate of duty'' 
    means, with respect to a safeguard good, the rate of duty for that 
    good that is set forth in the Schedule of the United States to 
    Annex 3.3 of the Agreement.
        (4) Trigger level.--
            (A) In general.--The term ``trigger level'' means--
                (i) in the case of a safeguard good classified under 
            subheading 0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 
            0202.20.80, or 0202.30.80 of the HTS--

                    (I) in year 1 of the Agreement, 330 metric tons; 
                and
                    (II) in year 2 of the Agreement through year 14 of 
                the Agreement, a quantity equal to 110 percent of the 
                trigger level for that safeguard good for the preceding 
                calendar year; and

                (ii) in the case of any other safeguard good, 115 
            percent of the quantity that is provided for that safeguard 
            good in the corresponding calendar year in the applicable 
            table contained in Appendix I to the General Notes to the 
            Schedule of the United States to Annex 3.3 of the 
            Agreement.
            (B) Relationship to table.--For purposes of subparagraph 
        (A)(ii), year 1 in the applicable table contained in Appendix I 
        to the General Notes to the Schedule of the United States to 
        Annex 3.3 of the Agreement corresponds to year 1 of the 
        Agreement.
        (5) Year 1 of the agreement.--The term ``year 1 of the 
    Agreement'' means the period beginning on the date, in a calendar 
    year, on which the Agreement enters into force and ending on 
    December 31 of that calendar year.
        (6) Years other than year 1 of the agreement.--Any reference to 
    a year of the Agreement subsequent to year 1 of the Agreement shall 
    be deemed to be a reference to the corresponding calendar year in 
    which the Agreement is in force.
    (b) Additional Duties on Safeguard Goods.--
        (1) In general.--In addition to any duty proclaimed under 
    subsection (a) or (b) of section 201, the Secretary of the Treasury 
    shall assess a duty, in the amount determined under paragraph (2), 
    on a safeguard good imported into the United States in a calendar 
    year if the Secretary determines that, prior to such importation, 
    the total volume of that safeguard good that is imported into the 
    United States in that calendar year exceeds the trigger level for 
    that good for that calendar year.
        (2) Calculation of additional duty.--The additional duty on a 
    safeguard good under this subsection shall be--
            (A) in the case of a good classified under subheading 
        0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 0202.20.80, or 
        0202.30.80 of the HTS--
                (i) in year 1 of the Agreement through year 6 of the 
            Agreement, an amount equal to 100 percent of the excess of 
            the applicable NTR (MFN) rate of duty over the schedule 
            rate of duty; and
                (ii) in year 7 of the Agreement through year 14 of the 
            Agreement, an amount equal to 50 percent of the excess of 
            the applicable NTR (MFN) rate of duty over the schedule 
            rate of duty;
            (B) in the case of a good classified under subheading 
        0406.10.08, 0406.10.88, 0406.20.91, 0406.30.91, 0406.90.97, or 
        2105.00.20 of the HTS--
                (i) in year 1 of the Agreement through year 11 of the 
            Agreement, an amount equal to 100 percent of the excess of 
            the applicable NTR (MFN) rate of duty over the schedule 
            rate of duty; and
                (ii) in year 12 of the Agreement through year 14 of the 
            Agreement, an amount equal to 50 percent of the excess of 
            the applicable NTR (MFN) rate of duty over the schedule 
            rate of duty; and
            (C) in the case of any other safeguard good--
                (i) in year 1 of the Agreement through year 13 of the 
            Agreement, an amount equal to 100 percent of the excess of 
            the applicable NTR (MFN) rate of duty over the schedule 
            rate of duty; and
                (ii) in year 14 of the Agreement through year 16 of the 
            Agreement, an amount equal to 50 percent of the excess of 
            the applicable NTR (MFN) rate of duty over the schedule 
            rate of duty.
        (3) Notice.--Not later than 60 days after the date on which the 
    Secretary of the Treasury first assesses an additional duty in a 
    calendar year on a good under this subsection, the Secretary shall 
    notify the Government of Panama in writing of such action and shall 
    provide to that Government data supporting the assessment of the 
    additional duty.
    (c) Exceptions.--No additional duty shall be assessed on a good 
under subsection (b) if, at the time of entry, the good is subject to 
import relief under--
        (1) subtitle A of title III of this Act; or
        (2) chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 
    2251 et seq.).
    (d) Termination.--The assessment of an additional duty on a good 
under subsection (b) shall cease to apply to that good on the date on 
which duty-free treatment must be provided to that good under the 
Schedule of the United States to Annex 3.3 of the Agreement.
    SEC. 203. RULES OF ORIGIN.
    (a) Application and Interpretation.--In this section:
        (1) Tariff classification.--The basis for any tariff 
    classification is the HTS.
        (2) Reference to hts.--Whenever in this section there is a 
    reference to a chapter, heading, or subheading, such reference 
    shall be a reference to a chapter, heading, or subheading of the 
    HTS.
        (3) Cost or value.--Any cost or value referred to in this 
    section shall be recorded and maintained in accordance with the 
    generally accepted accounting principles applicable in the 
    territory of the country in which the good is produced (whether 
    Panama or the United States).
    (b) Originating Goods.--For purposes of this Act and for purposes 
of implementing the preferential tariff treatment provided for under 
the Agreement, except as otherwise provided in this section, a good is 
an originating good if--
        (1) the good is a good wholly obtained or produced entirely in 
    the territory of Panama, the United States, or both;
        (2) the good--
            (A) is produced entirely in the territory of Panama, the 
        United States, or both, and--
                (i) each of the nonoriginating materials used in the 
            production of the good undergoes an applicable change in 
            tariff classification specified in Annex 4.1 of the 
            Agreement; or
                (ii) the good otherwise satisfies any applicable 
            regional value-content or other requirements specified in 
            Annex 4.1 of the Agreement; and
            (B) satisfies all other applicable requirements of this 
        section; or
        (3) the good is produced entirely in the territory of Panama, 
    the United States, or both, exclusively from materials described in 
    paragraph (1) or (2).
    (c) Regional Value-content.--
        (1) In general.--For purposes of subsection (b)(2), the 
    regional value-content of a good referred to in Annex 4.1 of the 
    Agreement, except for goods to which paragraph (4) applies, shall 
    be calculated by the importer, exporter, or producer of the good, 
    on the basis of the build-down method described in paragraph (2) or 
    the build-up method described in paragraph (3).
        (2) Build-down method.--
            (A) In general.--The regional value-content of a good may 
        be calculated on the basis of the following build-down method:

                         AV-VNM                   ......................
RVC =                    ----------               <greek-e> 100
                         AV                       ......................
 

            (B) Definitions.--In subparagraph (A):
                (i) RVC.--The term ``RVC'' means the regional value-
            content of the good, expressed as a percentage.
                (ii) AV.--The term ``AV'' means the adjusted value of 
            the good.
                (iii) VNM.--The term ``VNM'' means the value of 
            nonoriginating materials that are acquired and used by the 
            producer in the production of the good, but does not 
            include the value of a material that is self-produced.
        (3) Build-up method.--
            (A) In general.--The regional value-content of a good may 
        be calculated on the basis of the following build-up method:

                         VOM                      ......................
RVC =                    ----------               <greek-e> 100
                         AV                       ......................
 

            (B) Definitions.--In subparagraph (A):
                (i) RVC.--The term ``RVC'' means the regional value-
            content of the good, expressed as a percentage.
                (ii) AV.--The term ``AV'' means the adjusted value of 
            the good.
                (iii) VOM.--The term ``VOM'' means the value of 
            originating materials that are acquired or self-produced, 
            and used by the producer in the production of the good.
        (4) Special rule for certain automotive goods.--
            (A) In general.--For purposes of subsection (b)(2), the 
        regional value-content of an automotive good referred to in 
        Annex 4.1 of the Agreement may be calculated by the importer, 
        exporter, or producer of the good on the basis of the build-
        down method described in paragraph (2), the build-up method 
        described in paragraph (3), or the following net cost method:

                         NC-VNM                   ......................
RVC =                    ----------               <greek-e> 100
                         NC                       ......................
 

            (B) Definitions.--In subparagraph (A):
                (i) Automotive good.--The term ``automotive good'' 
            means a good provided for in any of subheadings 8407.31 
            through 8407.34, subheading 8408.20, heading 8409, or any 
            of headings 8701 through 8708.
                (ii) RVC.--The term ``RVC'' means the regional value-
            content of the automotive good, expressed as a percentage.
                (iii) NC.--The term ``NC'' means the net cost of the 
            automotive good.
                (iv) VNM.--The term ``VNM'' means the value of 
            nonoriginating materials that are acquired and used by the 
            producer in the production of the automotive good, but does 
            not include the value of a material that is self-produced.
            (C) Motor vehicles.--
                (i) Basis of calculation.--For purposes of determining 
            the regional value-content under subparagraph (A) for an 
            automotive good that is a motor vehicle provided for in any 
            of headings 8701 through 8705, an importer, exporter, or 
            producer may average the amounts calculated under the net 
            cost formula contained in subparagraph (A), over the 
            producer's fiscal year--

                    (I) with respect to all motor vehicles in any one 
                of the categories described in clause (ii); or
                    (II) with respect to all motor vehicles in any such 
                category that are exported to the territory of Panama 
                or the United States.

                (ii) Categories.--A category is described in this 
            clause if it--

                    (I) is the same model line of motor vehicles, is in 
                the same class of motor vehicles, and is produced in 
                the same plant in the territory of Panama or the United 
                States, as the good described in clause (i) for which 
                regional value-content is being calculated;
                    (II) is the same class of motor vehicles, and is 
                produced in the same plant in the territory of Panama 
                or the United States, as the good described in clause 
                (i) for which regional value-content is being 
                calculated; or
                    (III) is the same model line of motor vehicles 
                produced in the territory of Panama or the United 
                States as the good described in clause (i) for which 
                regional value-content is being calculated.

            (D) Other automotive goods.--For purposes of determining 
        the regional value-content under subparagraph (A) for 
        automotive materials provided for in any of subheadings 8407.31 
        through 8407.34, in subheading 8408.20, or in heading 8409, 
        8706, 8707, or 8708, that are produced in the same plant, an 
        importer, exporter, or producer may--
                (i) average the amounts calculated under the net cost 
            formula contained in subparagraph (A) over--

                    (I) the fiscal year of the motor vehicle producer 
                to whom the automotive goods are sold,
                    (II) any quarter or month, or
                    (III) the fiscal year of the producer of such 
                goods,

            if the goods were produced during the fiscal year, quarter, 
            or month that is the basis for the calculation;
                (ii) determine the average referred to in clause (i) 
            separately for such goods sold to 1 or more motor vehicle 
            producers; or
                (iii) make a separate determination under clause (i) or 
            (ii) for such goods that are exported to the territory of 
            Panama or the United States.
            (E) Calculating net cost.--The importer, exporter, or 
        producer of an automotive good shall, consistent with the 
        provisions regarding allocation of costs provided for in 
        generally accepted accounting principles, determine the net 
        cost of the automotive good under subparagraph (B) by--
                (i) calculating the total cost incurred with respect to 
            all goods produced by the producer of the automotive good, 
            subtracting any sales promotion, marketing, and after-sales 
            service costs, royalties, shipping and packing costs, and 
            nonallowable interest costs that are included in the total 
            cost of all such goods, and then reasonably allocating the 
            resulting net cost of those goods to the automotive good;
                (ii) calculating the total cost incurred with respect 
            to all goods produced by that producer, reasonably 
            allocating the total cost to the automotive good, and then 
            subtracting any sales promotion, marketing, and after-sales 
            service costs, royalties, shipping and packing costs, and 
            nonallowable interest costs that are included in the 
            portion of the total cost allocated to the automotive good; 
            or
                (iii) reasonably allocating each cost that forms part 
            of the total cost incurred with respect to the automotive 
            good so that the aggregate of these costs does not include 
            any sales promotion, marketing, and after-sales service 
            costs, royalties, shipping and packing costs, or 
            nonallowable interest costs.
    (d) Value of Materials.--
        (1) In general.--For the purpose of calculating the regional 
    value-content of a good under subsection (c), and for purposes of 
    applying the de minimis rules under subsection (f), the value of a 
    material is--
            (A) in the case of a material that is imported by the 
        producer of the good, the adjusted value of the material;
            (B) in the case of a material acquired in the territory in 
        which the good is produced, the value, determined in accordance 
        with Articles 1 through 8, Article 15, and the corresponding 
        interpretive notes, of the Agreement on Implementation of 
        Article VII of the General Agreement on Tariffs and Trade 1994 
        referred to in section 101(d)(8) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(d)(8)), as set forth in 
        regulations promulgated by the Secretary of the Treasury 
        providing for the application of such Articles in the absence 
        of an importation by the producer; or
            (C) in the case of a material that is self-produced, the 
        sum of--
                (i) all expenses incurred in the production of the 
            material, including general expenses; and
                (ii) an amount for profit equivalent to the profit 
            added in the normal course of trade.
        (2) Further adjustments to the value of materials.--
            (A) Originating material.--The following expenses, if not 
        included in the value of an originating material calculated 
        under paragraph (1), may be added to the value of the 
        originating material:
                (i) The costs of freight, insurance, packing, and all 
            other costs incurred in transporting the material within or 
            between the territory of Panama, the United States, or 
            both, to the location of the producer.
                (ii) Duties, taxes, and customs brokerage fees on the 
            material paid in the territory of Panama, the United 
            States, or both, other than duties or taxes that are 
            waived, refunded, refundable, or otherwise recoverable, 
            including credit against duty or tax paid or payable.
                (iii) The cost of waste and spoilage resulting from the 
            use of the material in the production of the good, less the 
            value of renewable scrap or byproducts.
            (B) Nonoriginating material.--The following expenses, if 
        included in the value of a nonoriginating material calculated 
        under paragraph (1), may be deducted from the value of the 
        nonoriginating material:
                (i) The costs of freight, insurance, packing, and all 
            other costs incurred in transporting the material within or 
            between the territory of Panama, the United States, or 
            both, to the location of the producer.
                (ii) Duties, taxes, and customs brokerage fees on the 
            material paid in the territory of Panama, the United 
            States, or both, other than duties or taxes that are 
            waived, refunded, refundable, or otherwise recoverable, 
            including credit against duty or tax paid or payable.
                (iii) The cost of waste and spoilage resulting from the 
            use of the material in the production of the good, less the 
            value of renewable scrap or byproducts.
                (iv) The cost of originating materials used in the 
            production of the nonoriginating material in the territory 
            of Panama, the United States, or both.
    (e) Accumulation.--
        (1) Originating materials used in production of goods of the 
    other country.--Originating materials from the territory of Panama 
    or the United States that are used in the production of a good in 
    the territory of the other country shall be considered to originate 
    in the territory of such other country.
        (2) Multiple producers.--A good that is produced in the 
    territory of Panama, the United States, or both, by 1 or more 
    producers, is an originating good if the good satisfies the 
    requirements of subsection (b) and all other applicable 
    requirements of this section.
    (f) De Minimis Amounts of Nonoriginating Materials.--
        (1) In general.--Except as provided in paragraphs (2) and (3), 
    a good that does not undergo a change in tariff classification 
    pursuant to Annex 4.1 of the Agreement is an originating good if--
            (A) the value of all nonoriginating materials that--
                (i) are used in the production of the good, and
                (ii) do not undergo the applicable change in tariff 
            classification (set forth in Annex 4.1 of the Agreement),
        does not exceed 10 percent of the adjusted value of the good;
            (B) the good meets all other applicable requirements of 
        this section; and
            (C) the value of such nonoriginating materials is included 
        in the value of nonoriginating materials for any applicable 
        regional value-content requirement for the good.
        (2) Exceptions.--Paragraph (1) does not apply to the following:
            (A) A nonoriginating material provided for in chapter 4, or 
        a nonoriginating dairy preparation containing over 10 percent 
        by weight of milk solids provided for in subheading 1901.90 or 
        2106.90, that is used in the production of a good provided for 
        in chapter 4.
            (B) A nonoriginating material provided for in chapter 4, or 
        a nonoriginating dairy preparation containing over 10 percent 
        by weight of milk solids provided for in subheading 1901.90, 
        that is used in the production of the following goods:
                (i) Infant preparations containing over 10 percent by 
            weight of milk solids provided for in subheading 1901.10.
                (ii) Mixes and doughs, containing over 25 percent by 
            weight of butterfat, not put up for retail sale, provided 
            for in subheading 1901.20.
                (iii) Dairy preparations containing over 10 percent by 
            weight of milk solids provided for in subheading 1901.90 or 
            2106.90.
                (iv) Goods provided for in heading 2105.
                (v) Beverages containing milk provided for in 
            subheading 2202.90.
                (vi) Animal feeds containing over 10 percent by weight 
            of milk solids provided for in subheading 2309.90.
            (C) A nonoriginating material provided for in heading 0805, 
        or any of subheadings 2009.11 through 2009.39, that is used in 
        the production of a good provided for in any of subheadings 
        2009.11 through 2009.39, or in fruit or vegetable juice of any 
        single fruit or vegetable, fortified with minerals or vitamins, 
        concentrated or unconcentrated, provided for in subheading 
        2106.90 or 2202.90.
            (D) A nonoriginating material provided for in heading 0901 
        or 2101 that is used in the production of a good provided for 
        in heading 0901 or 2101.
            (E) A nonoriginating material provided for in heading 1006 
        that is used in the production of a good provided for in 
        heading 1102 or 1103 or subheading 1904.90.
            (F) A nonoriginating material provided for in chapter 15 
        that is used in the production of a good provided for in 
        chapter 15.
            (G) A nonoriginating material provided for in heading 1701 
        that is used in the production of a good provided for in any of 
        headings 1701 through 1703.
            (H) A nonoriginating material provided for in chapter 17 
        that is used in the production of a good provided for in 
        subheading 1806.10.
            (I) Except as provided in subparagraphs (A) through (H) and 
        Annex 4.1 of the Agreement, a nonoriginating material used in 
        the production of a good provided for in any of chapters 1 
        through 24, unless the nonoriginating material is provided for 
        in a different subheading than the good for which origin is 
        being determined under this section.
        (3) Textile or apparel goods.--
            (A) In general.--Except as provided in subparagraph (B), a 
        textile or apparel good that is not an originating good because 
        certain fibers or yarns used in the production of the component 
        of the good that determines the tariff classification of the 
        good do not undergo an applicable change in tariff 
        classification, set forth in Annex 4.1 of the Agreement, shall 
        be considered to be an originating good if--
                (i) the total weight of all such fibers or yarns in 
            that component is not more than 10 percent of the total 
            weight of that component; or
                (ii) the yarns are those described in section 
            204(b)(3)(B)(vi)(IV) of the Andean Trade Preference Act (19 
            U.S.C. 3203(b)(3)(B)(vi)(IV)) (as in effect on February 12, 
            2011).
            (B) Certain textile or apparel goods.--A textile or apparel 
        good containing elastomeric yarns in the component of the good 
        that determines the tariff classification of the good shall be 
        considered to be an originating good only if such yarns are 
        wholly formed and finished in the territory of Panama, the 
        United States, or both.
            (C) Fabric, yarn, or fiber.--For purposes of this 
        paragraph, in the case of a good that is a fabric, yarn, or 
        fiber, the term ``component of the good that determines the 
        tariff classification of the good'' means all of the fibers in 
        the good.
    (g) Fungible Goods and Materials.--
        (1) In general.--
            (A) Claim for preferential tariff treatment.--A person 
        claiming that a fungible good or fungible material is an 
        originating good may base the claim either on the physical 
        segregation of the fungible good or fungible material or by 
        using an inventory management method with respect to the 
        fungible good or fungible material.
            (B) Inventory management method.--In this subsection, the 
        term ``inventory management method'' means--
                (i) averaging;
                (ii) ``last-in, first-out'';
                (iii) ``first-in, first-out''; or
                (iv) any other method--

                    (I) recognized in the generally accepted accounting 
                principles of the country in which the production is 
                performed (whether Panama or the United States); or
                    (II) otherwise accepted by that country.

        (2) Election of inventory method.--A person selecting an 
    inventory management method under paragraph (1) for a particular 
    fungible good or fungible material shall continue to use that 
    method for that fungible good or fungible material throughout the 
    fiscal year of such person.
    (h) Accessories, Spare Parts, or Tools.--
        (1) In general.--Subject to paragraphs (2) and (3), 
    accessories, spare parts, or tools delivered with a good that form 
    part of the good's standard accessories, spare parts, or tools 
    shall--
            (A) be treated as originating goods if the good is an 
        originating good; and
            (B) be disregarded in determining whether all the 
        nonoriginating materials used in the production of the good 
        undergo the applicable change in tariff classification set 
        forth in Annex 4.1 of the Agreement.
        (2) Conditions.--Paragraph (1) shall apply only if--
            (A) the accessories, spare parts, or tools are classified 
        with and not invoiced separately from the good, regardless of 
        whether such accessories, spare parts, or tools are specified 
        or are separately identified in the invoice for the good; and
            (B) the quantities and value of the accessories, spare 
        parts, or tools are customary for the good.
        (3) Regional value-content.--If the good is subject to a 
    regional value-content requirement, the value of the accessories, 
    spare parts, or tools shall be taken into account as originating or 
    nonoriginating materials, as the case may be, in calculating the 
    regional value-content of the good.
    (i) Packaging Materials and Containers for Retail Sale.--Packaging 
materials and containers in which a good is packaged for retail sale, 
if classified with the good, shall be disregarded in determining 
whether all the nonoriginating materials used in the production of the 
good undergo the applicable change in tariff classification set forth 
in Annex 4.1 of the Agreement, and, if the good is subject to a 
regional value-content requirement, the value of such packaging 
materials and containers shall be taken into account as originating or 
nonoriginating materials, as the case may be, in calculating the 
regional value-content of the good.
    (j) Packing Materials and Containers for Shipment.--Packing 
materials and containers for shipment shall be disregarded in 
determining whether a good is an originating good.
    (k) Indirect Materials.--An indirect material shall be treated as 
an originating material without regard to where it is produced.
    (l) Transit and Transhipment.--A good that has undergone production 
necessary to qualify as an originating good under subsection (b) shall 
not be considered to be an originating good if, subsequent to that 
production, the good--
        (1) undergoes further production or any other operation outside 
    the territory of Panama or the United States, other than unloading, 
    reloading, or any other operation necessary to preserve the good in 
    good condition or to transport the good to the territory of Panama 
    or the United States; or
        (2) does not remain under the control of customs authorities in 
    the territory of a country other than Panama or the United States.
    (m) Goods Classifiable as Goods Put up in Sets.--Notwithstanding 
the rules set forth in Annex 4.1 of the Agreement, goods classifiable 
as goods put up in sets for retail sale as provided for in General Rule 
of Interpretation 3 of the HTS shall not be considered to be 
originating goods unless--
        (1) each of the goods in the set is an originating good; or
        (2) the total value of the nonoriginating goods in the set does 
    not exceed--
            (A) in the case of textile or apparel goods, 10 percent of 
        the adjusted value of the set; or
            (B) in the case of goods, other than textile or apparel 
        goods, 15 percent of the adjusted value of the set.
    (n) Definitions.--In this section:
        (1) Adjusted value.--The term ``adjusted value'' means the 
    value determined in accordance with Articles 1 through 8, Article 
    15, and the corresponding interpretive notes, of the Agreement on 
    Implementation of Article VII of the General Agreement on Tariffs 
    and Trade 1994 referred to in section 101(d)(8) of the Uruguay 
    Round Agreements Act (19 U.S.C. 3511(d)(8)), adjusted, if 
    necessary, to exclude any costs, charges, or expenses incurred for 
    transportation, insurance, and related services incident to the 
    international shipment of the merchandise from the country of 
    exportation to the place of importation.
        (2) Class of motor vehicles.--The term ``class of motor 
    vehicles'' means any one of the following categories of motor 
    vehicles:
            (A) Motor vehicles provided for in subheading 8701.20, 
        8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 
        or 8706, or motor vehicles for the transport of 16 or more 
        persons provided for in subheading 8702.10 or 8702.90.
            (B) Motor vehicles provided for in subheading 8701.10 or 
        any of subheadings 8701.30 through 8701.90.
            (C) Motor vehicles for the transport of 15 or fewer persons 
        provided for in subheading 8702.10 or 8702.90, or motor 
        vehicles provided for in subheading 8704.21 or 8704.31.
            (D) Motor vehicles provided for in any of subheadings 
        8703.21 through 8703.90.
        (3) Fungible good or fungible material.--The term ``fungible 
    good'' or ``fungible material'' means a good or material, as the 
    case may be, that is interchangeable with another good or material 
    for commercial purposes and the properties of which are essentially 
    identical to such other good or material.
        (4) Generally accepted accounting principles.--The term 
    ``generally accepted accounting principles''--
            (A) means the recognized consensus or substantial 
        authoritative support given in the territory of Panama or the 
        United States, as the case may be, with respect to the 
        recording of revenues, expenses, costs, assets, and 
        liabilities, the disclosure of information, and the preparation 
        of financial statements; and
            (B) may encompass broad guidelines for general application 
        as well as detailed standards, practices, and procedures.
        (5) Good wholly obtained or produced entirely in the territory 
    of panama, the united states, or both.--The term ``good wholly 
    obtained or produced entirely in the territory of Panama, the 
    United States, or both'' means any of the following:
            (A) Plants and plant products harvested or gathered in the 
        territory of Panama, the United States, or both.
            (B) Live animals born and raised in the territory of 
        Panama, the United States, or both.
            (C) Goods obtained in the territory of Panama, the United 
        States, or both from live animals.
            (D) Goods obtained from hunting, trapping, fishing, or 
        aquaculture conducted in the territory of Panama, the United 
        States, or both.
            (E) Minerals and other natural resources not included in 
        subparagraphs (A) through (D) that are extracted or taken from 
        the territory of Panama, the United States, or both.
            (F) Fish, shellfish, and other marine life taken from the 
        sea, seabed, or subsoil outside the territory of Panama or the 
        United States by--
                (i) a vessel that is registered or recorded with Panama 
            and flying the flag of Panama; or
                (ii) a vessel that is documented under the laws of the 
            United States.
            (G) Goods produced on board a factory ship from goods 
        referred to in subparagraph (F), if such factory ship--
                (i) is registered or recorded with Panama and flies the 
            flag of Panama; or
                (ii) is a vessel that is documented under the laws of 
            the United States.
            (H)(i) Goods taken by Panama or a person of Panama from the 
        seabed or subsoil outside the territorial waters of Panama, if 
        Panama has rights to exploit such seabed or subsoil.
            (ii) Goods taken by the United States or a person of the 
        United States from the seabed or subsoil outside the 
        territorial waters of the United States, if the United States 
        has rights to exploit such seabed or subsoil.
            (I) Goods taken from outer space, if the goods are obtained 
        by Panama or the United States or a person of Panama or the 
        United States and not processed in the territory of a country 
        other than Panama or the United States.
            (J) Waste and scrap derived from--
                (i) manufacturing or processing operations in the 
            territory of Panama, the United States, or both; or
                (ii) used goods collected in the territory of Panama, 
            the United States, or both, if such goods are fit only for 
            the recovery of raw materials.
            (K) Recovered goods derived in the territory of Panama, the 
        United States, or both from used goods, and used in the 
        territory of Panama, the United States, or both, in the 
        production of remanufactured goods.
            (L) Goods, at any stage of production, produced in the 
        territory of Panama, the United States, or both, exclusively 
        from--
                (i) goods referred to in any of subparagraphs (A) 
            through (J), or
                (ii) the derivatives of goods referred to in clause 
            (i).
        (6) Identical goods.--The term ``identical goods'' means goods 
    that are the same in all respects relevant to the rule of origin 
    that qualifies the goods as originating goods.
        (7) Indirect material.--The term ``indirect material'' means a 
    good used in the production, testing, or inspection of another good 
    but not physically incorporated into that other good, or a good 
    used in the maintenance of buildings or the operation of equipment 
    associated with the production of another good, including--
            (A) fuel and energy;
            (B) tools, dies, and molds;
            (C) spare parts and materials used in the maintenance of 
        equipment or buildings;
            (D) lubricants, greases, compounding materials, and other 
        materials used in production or used to operate equipment or 
        buildings;
            (E) gloves, glasses, footwear, clothing, safety equipment, 
        and supplies;
            (F) equipment, devices, and supplies used for testing or 
        inspecting the good;
            (G) catalysts and solvents; and
            (H) any other good that is not incorporated into the other 
        good but the use of which in the production of the other good 
        can reasonably be demonstrated to be a part of that production.
        (8) Material.--The term ``material'' means a good that is used 
    in the production of another good, including a part or an 
    ingredient.
        (9) Material that is self-produced.--The term ``material that 
    is self-produced'' means an originating material that is produced 
    by a producer of a good and used in the production of that good.
        (10) Model line of motor vehicles.--The term ``model line of 
    motor vehicles'' means a group of motor vehicles having the same 
    platform or model name.
        (11) Net cost.--The term ``net cost'' means total cost minus 
    sales promotion, marketing, and after-sales service costs, 
    royalties, shipping and packing costs, and nonallowable interest 
    costs that are included in the total cost.
        (12) Nonallowable interest costs.--The term ``nonallowable 
    interest costs'' means interest costs incurred by a producer that 
    exceed 700 basis points above the applicable official interest rate 
    for comparable maturities of the country in which the producer is 
    located.
        (13) Nonoriginating good or nonoriginating material.--The term 
    ``nonoriginating good'' or ``nonoriginating material'' means a good 
    or material, as the case may be, that does not qualify as 
    originating under this section.
        (14) Packing materials and containers for shipment.--The term 
    ``packing materials and containers for shipment'' means goods used 
    to protect another good during its transportation and does not 
    include the packaging materials and containers in which the other 
    good is packaged for retail sale.
        (15) Preferential tariff treatment.--The term ``preferential 
    tariff treatment'' means the customs duty rate, and the treatment 
    under article 3.10.4 of the Agreement, that are applicable to an 
    originating good pursuant to the Agreement.
        (16) Producer.--The term ``producer'' means a person who 
    engages in the production of a good in the territory of Panama or 
    the United States.
        (17) Production.--The term ``production'' means growing, 
    mining, harvesting, fishing, raising, trapping, hunting, 
    manufacturing, processing, assembling, or disassembling a good.
        (18) Reasonably allocate.--The term ``reasonably allocate'' 
    means to apportion in a manner that would be appropriate under 
    generally accepted accounting principles.
        (19) Recovered goods.--The term ``recovered goods'' means 
    materials in the form of individual parts that are the result of--
            (A) the disassembly of used goods into individual parts; 
        and
            (B) the cleaning, inspecting, testing, or other processing 
        that is necessary for improvement to sound working condition of 
        such individual parts.
        (20) Remanufactured good.--The term ``remanufactured good'' 
    means a good that is classified under chapter 84, 85, 87, or 90, or 
    heading 9402, other than a good classified under heading 8418 or 
    8516, and that--
            (A) is entirely or partially comprised of recovered goods; 
        and
            (B) has a similar life expectancy and enjoys a factory 
        warranty similar to such a good that is new.
        (21) Total cost.--The term ``total cost'' means all product 
    costs, period costs, and other costs for a good incurred in the 
    territory of Panama, the United States, or both.
        (22) Used.--The term ``used'' means utilized or consumed in the 
    production of goods.
    (o) Presidential Proclamation Authority.--
        (1) In general.--The President is authorized to proclaim, as 
    part of the HTS--
            (A) the provisions set forth in Annex 4.1 of the Agreement; 
        and
            (B) any additional subordinate category that is necessary 
        to carry out this title consistent with the Agreement.
        (2) Fabrics, yarns, or fibers not available in commercial 
    quantities in the united states.--The President is authorized to 
    proclaim that a fabric, yarn, or fiber is added to the list in 
    Annex 3.25 of the Agreement in an unrestricted quantity, as 
    provided in article 3.25.4(e) of the Agreement.
        (3) Modifications.--
            (A) In general.--Subject to the consultation and layover 
        provisions of section 104, the President may proclaim 
        modifications to the provisions proclaimed under the authority 
        of paragraph (1)(A), other than provisions of chapters 50 
        through 63 (as included in Annex 4.1 of the Agreement).
            (B) Additional proclamations.--Notwithstanding subparagraph 
        (A), and subject to the consultation and layover provisions of 
        section 104, the President may proclaim before the end of the 
        1-year period beginning on the date on which the Agreement 
        enters into force, modifications to correct any typographical, 
        clerical, or other nonsubstantive technical error regarding the 
        provisions of chapters 50 through 63 (as included in Annex 4.1 
        of the Agreement).
        (4) Fabrics, yarns, or fibers not available in commercial 
    quantities in panama and the united states.--
            (A) In general.--Notwithstanding paragraph (3)(A), the list 
        of fabrics, yarns, and fibers set forth in Annex 3.25 of the 
        Agreement may be modified as provided for in this paragraph.
            (B) Definitions.--In this paragraph:
                (i) Interested entity.--The term ``interested entity'' 
            means the Government of Panama, a potential or actual 
            purchaser of a textile or apparel good, or a potential or 
            actual supplier of a textile or apparel good.
                (ii) Day; days.--All references to ``day'' and ``days'' 
            exclude Saturdays, Sundays, and legal holidays observed by 
            the Government of the United States.
            (C) Requests to add fabrics, yarns, or fibers.--
                (i) In general.--An interested entity may request the 
            President to determine that a fabric, yarn, or fiber is not 
            available in commercial quantities in a timely manner in 
            Panama and the United States and to add that fabric, yarn, 
            or fiber to the list in Annex 3.25 of the Agreement in a 
            restricted or unrestricted quantity.
                (ii) Determinations.--After receiving a request under 
            clause (i), the President may determine whether--

                    (I) the fabric, yarn, or fiber is available in 
                commercial quantities in a timely manner in Panama or 
                the United States; or
                    (II) any interested entity objects to the request.

                (iii) Proclamation authority.--The President may, 
            within the time periods specified in clause (iv), proclaim 
            that the fabric, yarn, or fiber that is the subject of the 
            request is added to the list in Annex 3.25 of the Agreement 
            in an unrestricted quantity, or in any restricted quantity 
            that the President may establish, if the President has 
            determined under clause (ii) that--

                    (I) the fabric, yarn, or fiber is not available in 
                commercial quantities in a timely manner in Panama and 
                the United States; or
                    (II) no interested entity has objected to the 
                request.

                (iv) Time periods.--The time periods within which the 
            President may issue a proclamation under clause (iii) are--

                    (I) not later than 30 days after the date on which 
                a request is submitted under clause (i); or
                    (II) not later than 44 days after the request is 
                submitted, if the President determines, within 30 days 
                after the date on which the request is submitted, that 
                the President does not have sufficient information to 
                make a determination under clause (ii).

                (v) Effective date.--Notwithstanding section 103(a)(2), 
            a proclamation made under clause (iii) shall take effect on 
            the date on which the text of the proclamation is published 
            in the Federal Register.
                (vi) Elimination of restriction.--Not later than 6 
            months after proclaiming under clause (iii) that a fabric, 
            yarn, or fiber is added to the list in Annex 3.25 of the 
            Agreement in a restricted quantity, the President may 
            eliminate the restriction if the President determines that 
            the fabric, yarn, or fiber is not available in commercial 
            quantities in a timely manner in Panama and the United 
            States.
            (D) Deemed approval of request.--If, after an interested 
        entity submits a request under subparagraph (C)(i), the 
        President does not, within the applicable time period specified 
        in subparagraph (C)(iv), make a determination under 
        subparagraph (C)(ii) regarding the request, the fabric, yarn, 
        or fiber that is the subject of the request shall be considered 
        to be added, in an unrestricted quantity, to the list in Annex 
        3.25 of the Agreement beginning--
                (i) 45 days after the date on which the request is 
            submitted; or
                (ii) 60 days after the date on which the request is 
            submitted, if the President made a determination under 
            subparagraph (C)(iv)(II).
            (E) Requests to restrict or remove fabrics, yarns, or 
        fibers.--
                (i) In general.--Subject to clause (ii), an interested 
            entity may request the President to restrict the quantity 
            of, or remove from the list in Annex 3.25 of the Agreement, 
            any fabric, yarn, or fiber--

                    (I) that has been added to that list in an 
                unrestricted quantity pursuant to paragraph (2) or 
                subparagraph (C)(iii) or (D) of this paragraph; or
                    (II) with respect to which the President has 
                eliminated a restriction under subparagraph (C)(vi).

                (ii) Time period for submission.--An interested entity 
            may submit a request under clause (i) at any time beginning 
            on the date that is 6 months after the date of the action 
            described in subclause (I) or (II) of that clause.
                (iii) Proclamation authority.--Not later than 30 days 
            after the date on which a request under clause (i) is 
            submitted, the President may proclaim an action provided 
            for under clause (i) if the President determines that the 
            fabric, yarn, or fiber that is the subject of the request 
            is available in commercial quantities in a timely manner in 
            Panama or the United States.
                (iv) Effective date.--A proclamation issued under 
            clause (iii) may not take effect earlier than the date that 
            is 6 months after the date on which the text of the 
            proclamation is published in the Federal Register.
            (F) Procedures.--The President shall establish procedures--
                (i) governing the submission of a request under 
            subparagraphs (C) and (E); and
                (ii) providing an opportunity for interested entities 
            to submit comments and supporting evidence before the 
            President makes a determination under subparagraph (C) (ii) 
            or (vi) or (E)(iii).
    SEC. 204. CUSTOMS USER FEES.
    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph 
(20) the following:
    ``(21) No fee may be charged under subsection (a)(9) or (10) with 
respect to goods that qualify as originating goods under section 203 of 
the United States-Panama Trade Promotion Agreement Implementation Act. 
Any service for which an exemption from such fee is provided by reason 
of this paragraph may not be funded with money contained in the Customs 
User Fee Account.''.
    SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS 
      OF ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.
    (a) Disclosure of Incorrect Information.--Section 592 of the Tariff 
Act of 1930 (19 U.S.C. 1592) is amended--
        (1) in subsection (c)--
            (A) by redesignating paragraph (13) as paragraph (14); and
            (B) by inserting after paragraph (12) the following new 
        paragraph:
        ``(13) Prior disclosure regarding claims under the united 
    states-panama trade promotion agreement.--An importer shall not be 
    subject to penalties under subsection (a) for making an incorrect 
    claim that a good qualifies as an originating good under section 
    203 of the United States-Panama Trade Promotion Agreement 
    Implementation Act if the importer, in accordance with regulations 
    issued by the Secretary of the Treasury, promptly and voluntarily 
    makes a corrected declaration and pays any duties owing with 
    respect to that good.''; and
        (2) by adding at the end the following new subsection:
    ``(l) False Certifications of Origin Under the United States-Panama 
Trade Promotion Agreement.--
        ``(1) In general.--Subject to paragraph (2), it is unlawful for 
    any person to certify falsely, by fraud, gross negligence, or 
    negligence, in a Panama TPA certification of origin (as defined in 
    section 508 of this Act) that a good exported from the United 
    States qualifies as an originating good under the rules of origin 
    provided for in section 203 of the United States-Panama Trade 
    Promotion Agreement Implementation Act. The procedures and 
    penalties of this section that apply to a violation of subsection 
    (a) also apply to a violation of this subsection.
        ``(2) Prompt and voluntary disclosure of incorrect 
    information.--No penalty shall be imposed under this subsection if, 
    promptly after an exporter or producer that issued a Panama TPA 
    certification of origin has reason to believe that such 
    certification contains or is based on incorrect information, the 
    exporter or producer voluntarily provides written notice of such 
    incorrect information to every person to whom the certification was 
    issued.
        ``(3) Exception.--A person shall not be considered to have 
    violated paragraph (1) if--
            ``(A) the information was correct at the time it was 
        provided in a Panama TPA certification of origin but was later 
        rendered incorrect due to a change in circumstances; and
            ``(B) the person promptly and voluntarily provides written 
        notice of the change in circumstances to all persons to whom 
        the person provided the certification.''.
    (b) Denial of Preferential Tariff Treatment.--Section 514 of the 
Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding at the end the 
following new subsection:
    ``(l) Denial of Preferential Tariff Treatment Under the United 
States-Panama Trade Promotion Agreement.--If U.S. Customs and Border 
Protection or U.S. Immigration and Customs Enforcement of the 
Department of Homeland Security finds indications of a pattern of 
conduct by an importer, exporter, or producer of false or unsupported 
representations that goods qualify under the rules of origin provided 
for in section 203 of the United States-Panama Trade Promotion 
Agreement Implementation Act, U.S. Customs and Border Protection, in 
accordance with regulations issued by the Secretary of the Treasury, 
may suspend preferential tariff treatment under the United States-
Panama Trade Promotion Agreement to entries of identical goods covered 
by subsequent representations by that importer, exporter, or producer 
until U.S. Customs and Border Protection determines that 
representations of that person are in conformity with such section 
203.''.
    SEC. 206. RELIQUIDATION OF ENTRIES.
    Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 1520(d)) is 
amended in the matter preceding paragraph (1)--
        (1) by striking ``or''; and
        (2) by striking ``for which'' and inserting ``, or section 203 
    of the United States-Panama Trade Promotion Agreement 
    Implementation Act for which''.
    SEC. 207. RECORDKEEPING REQUIREMENTS.
    Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
        (1) by redesignating subsection (k) as subsection (l);
        (2) by inserting after subsection (j) the following new 
    subsection:
    ``(k) Certifications of Origin for Goods Exported Under the United 
States-panama Trade Promotion Agreement.--
        ``(1) Definitions.--In this subsection:
            ``(A) Records and supporting documents.--The term `records 
        and supporting documents' means, with respect to an exported 
        good under paragraph (2), records and documents related to the 
        origin of the good, including--
                ``(i) the purchase, cost, and value of, and payment 
            for, the good;
                ``(ii) the purchase, cost, and value of, and payment 
            for, all materials, including indirect materials, used in 
            the production of the good; and
                ``(iii) the production of the good in the form in which 
            it was exported.
            ``(B) Panama tpa certification of origin.--The term `Panama 
        TPA certification of origin' means the certification 
        established under article 4.15 of the United States-Panama 
        Trade Promotion Agreement that a good qualifies as an 
        originating good under such Agreement.
        ``(2) Exports to panama.--Any person who completes and issues a 
    Panama TPA certification of origin for a good exported from the 
    United States shall make, keep, and, pursuant to rules and 
    regulations promulgated by the Secretary of the Treasury, render 
    for examination and inspection all records and supporting documents 
    related to the origin of the good (including the certification or 
    copies thereof).
        ``(3) Retention period.--The person who issues a Panama TPA 
    certification of origin shall keep the records and supporting 
    documents relating to that certification of origin for a period of 
    at least 5 years after the date on which the certification is 
    issued.''; and
        (3) in subsection (l), as so redesignated, by striking ``(i), 
    or (j)'' and inserting ``(i), (j), or (k)''.
    SEC. 208. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL 
      GOODS.
    (a) Action During Verification.--
        (1) In general.--If the Secretary of the Treasury requests the 
    Government of Panama to conduct a verification pursuant to article 
    3.21 of the Agreement for purposes of making a determination under 
    paragraph (2), the President may direct the Secretary to take 
    appropriate action described in subsection (b) while the 
    verification is being conducted.
        (2) Determination.--A determination under this paragraph is a 
    determination of the Secretary that--
            (A) an enterprise in Panama is complying with applicable 
        customs laws, regulations, and procedures regarding trade in 
        textile or apparel goods, or
            (B) a claim that a textile or apparel good exported or 
        produced by such enterprise--
                (i) qualifies as an originating good under section 203, 
            or
                (ii) is a good of Panama,
        is accurate.
    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
        (1) suspension of preferential tariff treatment under the 
    Agreement with respect to--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification under subsection 
        (a)(1) regarding compliance described in subsection (a)(2)(A), 
        if the Secretary of the Treasury determines that there is 
        insufficient information to support any claim for preferential 
        tariff treatment that has been made with respect to any such 
        good; or
            (B) the textile or apparel good for which a claim of 
        preferential tariff treatment has been made that is the subject 
        of a verification under subsection (a)(1) regarding a claim 
        described in subsection (a)(2)(B), if the Secretary determines 
        that there is insufficient information to support that claim;
        (2) denial of preferential tariff treatment under the Agreement 
    with respect to--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification under subsection 
        (a)(1) regarding compliance described in subsection (a)(2)(A), 
        if the Secretary determines that the person has provided 
        incorrect information to support any claim for preferential 
        tariff treatment that has been made with respect to any such 
        good; or
            (B) the textile or apparel good for which a claim of 
        preferential tariff treatment has been made that is the subject 
        of a verification under subsection (a)(1) regarding a claim 
        described in subsection (a)(2)(B), if the Secretary determines 
        that a person has provided incorrect information to support 
        that claim;
        (3) detention of any textile or apparel good exported or 
    produced by the person that is the subject of a verification under 
    subsection (a)(1) regarding compliance described in subsection 
    (a)(2)(A) or a claim described in subsection (a)(2)(B), if the 
    Secretary determines that there is insufficient information to 
    determine the country of origin of any such good; and
        (4) denial of entry into the United States of any textile or 
    apparel good exported or produced by the person that is the subject 
    of a verification under subsection (a)(1) regarding compliance 
    described in subsection (a)(2)(A) or a claim described in 
    subsection (a)(2)(B), if the Secretary determines that the person 
    has provided incorrect information as to the country of origin of 
    any such good.
    (c) Action on Completion of a Verification.--On completion of a 
verification under subsection (a), the President may direct the 
Secretary of the Treasury to take appropriate action described in 
subsection (d) until such time as the Secretary receives information 
sufficient to make the determination under subsection (a)(2) or until 
such earlier date as the President may direct.
    (d) Appropriate Action Described.--Appropriate action under 
subsection (c) includes--
        (1) denial of preferential tariff treatment under the Agreement 
    with respect to--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification under subsection 
        (a)(1) regarding compliance described in subsection (a)(2)(A), 
        if the Secretary of the Treasury determines that there is 
        insufficient information to support, or that the person has 
        provided incorrect information to support, any claim for 
        preferential tariff treatment that has been made with respect 
        to any such good; or
            (B) the textile or apparel good for which a claim of 
        preferential tariff treatment has been made that is the subject 
        of a verification under subsection (a)(1) regarding a claim 
        described in subsection (a)(2)(B), if the Secretary determines 
        that there is insufficient information to support, or that a 
        person has provided incorrect information to support, that 
        claim; and
        (2) denial of entry into the United States of any textile or 
    apparel good exported or produced by the person that is the subject 
    of a verification under subsection (a)(1) regarding compliance 
    described in subsection (a)(2)(A) or a claim described in 
    subsection (a)(2)(B), if the Secretary determines that there is 
    insufficient information to determine, or that the person has 
    provided incorrect information as to, the country of origin of any 
    such good.
    (e) Publication of Name of Person.--In accordance with article 
3.21.9 of the Agreement, the Secretary of the Treasury may publish the 
name of any person that the Secretary has determined--
        (1) is engaged in intentional circumvention of applicable laws, 
    regulations, or procedures affecting trade in textile or apparel 
    goods; or
        (2) has failed to demonstrate that it produces, or is capable 
    of producing, the textile or apparel goods that are the subject of 
    a verification under subsection (a)(1).
    SEC. 209. REGULATIONS.
    The Secretary of the Treasury shall prescribe such regulations as 
may be necessary to carry out--
        (1) subsections (a) through (n) of section 203;
        (2) the amendment made by section 204; and
        (3) any proclamation issued under section 203(o).

                     TITLE III--RELIEF FROM IMPORTS

    SEC. 301. DEFINITIONS.
    In this title:
        (1) Panamanian article.--The term ``Panamanian article'' means 
    an article that qualifies as an originating good under section 
    203(b).
        (2) Panamanian textile or apparel article.--The term 
    ``Panamanian textile or apparel article'' means a textile or 
    apparel good (as defined in section 3(4)) that is a Panamanian 
    article.

     Subtitle A--Relief From Imports Benefitting From the Agreement

    SEC. 311. COMMENCING OF ACTION FOR RELIEF.
    (a) Filing of Petition.--A petition requesting action under this 
subtitle for the purpose of adjusting to the obligations of the United 
States under the Agreement may be filed with the Commission by an 
entity, including a trade association, firm, certified or recognized 
union, or group of workers, that is representative of an industry. The 
Commission shall transmit a copy of any petition filed under this 
subsection to the United States Trade Representative.
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the Commission, unless subsection (d) applies, 
shall promptly initiate an investigation to determine whether, as a 
result of the reduction or elimination of a duty provided for under the 
Agreement, a Panamanian article is being imported into the United 
States in such increased quantities, in absolute terms or relative to 
domestic production, and under such conditions that imports of the 
Panamanian article constitute a substantial cause of serious injury or 
threat thereof to the domestic industry producing an article that is 
like, or directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
        (1) Paragraphs (1)(B) and (3) of subsection (b).
        (2) Subsection (c).
        (3) Subsection (i).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Panamanian article if, 
after the date on which the Agreement enters into force, import relief 
has been provided with respect to that Panamanian article under this 
subtitle.
    SEC. 312. COMMISSION ACTION ON PETITION.
    (a) Determination.--Not later than 120 days after the date on which 
an investigation is initiated under section 311(b) with respect to a 
petition, the Commission shall make the determination required under 
that section.
    (b) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under this 
section as if such determinations and findings were made under section 
202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination 
Affirmative.--
        (1) In general.--If the determination made by the Commission 
    under subsection (a) with respect to imports of an article is 
    affirmative, or if the President may consider a determination of 
    the Commission to be an affirmative determination as provided for 
    under paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 
    U.S.C. 1330(d)(1)), the Commission shall find, and recommend to the 
    President in the report required under subsection (d), the amount 
    of import relief that is necessary to remedy or prevent the injury 
    found by the Commission in the determination and to facilitate the 
    efforts of the domestic industry to make a positive adjustment to 
    import competition.
        (2) Limitation on relief.--The import relief recommended by the 
    Commission under this subsection shall be limited to the relief 
    described in section 313(c).
        (3) Voting; separate views.--Only those members of the 
    Commission who voted in the affirmative under subsection (a) are 
    eligible to vote on the proposed action to remedy or prevent the 
    injury found by the Commission. Members of the Commission who did 
    not vote in the affirmative may submit, in the report required 
    under subsection (d), separate views regarding what action, if any, 
    should be taken to remedy or prevent the injury.
    (d) Report to President.--Not later than the date that is 30 days 
after the date on which a determination is made under subsection (a) 
with respect to an investigation, the Commission shall submit to the 
President a report that includes--
        (1) the determination made under subsection (a) and an 
    explanation of the basis for the determination;
        (2) if the determination under subsection (a) is affirmative, 
    any findings and recommendations for import relief made under 
    subsection (c) and an explanation of the basis for each 
    recommendation; and
        (3) any dissenting or separate views by members of the 
    Commission regarding the determination referred to in paragraph (1) 
    and any finding or recommendation referred to in paragraph (2).
    (e) Public Notice.--Upon submitting a report to the President under 
subsection (d), the Commission shall promptly make public the report 
(with the exception of information which the Commission determines to 
be confidential) and shall publish a summary of the report in the 
Federal Register.
    SEC. 313. PROVISION OF RELIEF.
    (a) In General.--Not later than the date that is 30 days after the 
date on which the President receives a report of the Commission in 
which the Commission's determination under section 312(a) is 
affirmative, or which contains a determination under section 312(a) 
that the President considers to be affirmative under paragraph (1) of 
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 
President, subject to subsection (b), shall provide relief from imports 
of the article that is the subject of such determination to the extent 
that the President determines necessary to remedy or prevent the injury 
found by the Commission and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition.
    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the 
provision of the import relief will not provide greater economic and 
social benefits than costs.
    (c) Nature of Relief.--
        (1) In general.--The import relief that the President is 
    authorized to provide under this section with respect to imports of 
    an article is as follows:
            (A) The suspension of any further reduction provided for 
        under Annex 3.3 of the Agreement in the duty imposed on the 
        article.
            (B) An increase in the rate of duty imposed on the article 
        to a level that does not exceed the lesser of--
                (i) the column 1 general rate of duty imposed under the 
            HTS on like articles at the time the import relief is 
            provided; or
                (ii) the column 1 general rate of duty imposed under 
            the HTS on like articles on the day before the date on 
            which the Agreement enters into force.
        (2) Progressive liberalization.--If the period for which import 
    relief is provided under this section is greater than 1 year, the 
    President shall provide for the progressive liberalization 
    (described in article 8.2.3 of the Agreement) of such relief at 
    regular intervals during the period of its application.
    (d) Period of Relief.--
        (1) In general.--Subject to paragraph (2), any import relief 
    that the President provides under this section may not, in the 
    aggregate, be in effect for more than 4 years.
        (2) Extension.--
            (A) In general.--If the initial period for any import 
        relief provided under this section is less than 4 years, the 
        President, after receiving a determination from the Commission 
        under subparagraph (B) that is affirmative, or which the 
        President considers to be affirmative under paragraph (1) of 
        section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
        1330(d)(1)), may extend the effective period of any import 
        relief provided under this section, subject to the limitation 
        under paragraph (1), if the President determines that--
                (i) the import relief continues to be necessary to 
            remedy or prevent serious injury and to facilitate 
            adjustment by the domestic industry to import competition; 
            and
                (ii) there is evidence that the industry is making a 
            positive adjustment to import competition.
            (B) Action by commission.--
                (i) Investigation.--Upon a petition on behalf of the 
            industry concerned that is filed with the Commission not 
            earlier than the date that is 9 months, and not later than 
            the date that is 6 months, before the date on which any 
            action taken under subsection (a) is to terminate, the 
            Commission shall conduct an investigation to determine 
            whether action under this section continues to be necessary 
            to remedy or prevent serious injury and whether there is 
            evidence that the industry is making a positive adjustment 
            to import competition.
                (ii) Notice and hearing.--The Commission shall publish 
            notice of the commencement of any proceeding under this 
            subparagraph in the Federal Register and shall, within a 
            reasonable time thereafter, hold a public hearing at which 
            the Commission shall afford interested parties and 
            consumers an opportunity to be present, to present 
            evidence, and to respond to the presentations of other 
            parties and consumers, and otherwise to be heard.
                (iii) Report.--The Commission shall submit to the 
            President a report on its investigation and determination 
            under this subparagraph not later than 60 days before the 
            action under subsection (a) is to terminate, unless the 
            President specifies a different date.
    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article--
        (1) the rate of duty on that article after such termination and 
    on or before December 31 of the year in which such termination 
    occurs shall be the rate that, according to the Schedule of the 
    United States to Annex 3.3 of the Agreement, would have been in 
    effect 1 year after the provision of relief under subsection (a); 
    and
        (2) the rate of duty for that article after December 31 of the 
    year in which such termination occurs shall be, at the discretion 
    of the President, either--
            (A) the applicable rate of duty for that article set forth 
        in the Schedule of the United States to Annex 3.3 of the 
        Agreement; or
            (B) the rate of duty resulting from the elimination of the 
        tariff in equal annual stages ending on the date set forth in 
        the Schedule of the United States to Annex 3.3 of the Agreement 
        for the elimination of the tariff.
    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on--
        (1) any article that is subject to import relief under--
            (A) subtitle B; or
            (B) chapter 1 of title II of the Trade Act of 1974 (19 
        U.S.C. 2251 et seq.); or
        (2) any article on which an additional duty assessed under 
    section 202(b) is in effect.
    SEC. 314. TERMINATION OF RELIEF AUTHORITY.
    (a) General Rule.--Subject to subsection (b), no import relief may 
be provided under this subtitle after the date that is 10 years after 
the date on which the Agreement enters into force.
    (b) Exception.--If an article for which relief is provided under 
this subtitle is an article for which the period for tariff 
elimination, set forth in the Schedule of the United States to Annex 
3.3 of the Agreement, is greater than 10 years, no relief under this 
subtitle may be provided for that article after the date on which that 
period ends.
    SEC. 315. COMPENSATION AUTHORITY.
    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 313 
shall be treated as action taken under chapter 1 of title II of such 
Act (19 U.S.C. 2251 et seq.).
    SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
    Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 
is amended in the first sentence--
        (1) by striking ``and''; and
        (2) by inserting before the period at the end ``, and title III 
    of the United States-Panama Trade Promotion Agreement 
    Implementation Act''.

           Subtitle B--Textile and Apparel Safeguard Measures

    SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.
    (a) In General.--A request for action under this subtitle for the 
purpose of adjusting to the obligations of the United States under the 
Agreement may be filed with the President by an interested party. Upon 
the filing of a request, the President shall review the request to 
determine, from information presented in the request, whether to 
commence consideration of the request.
    (b) Publication of Request.--If the President determines that the 
request under subsection (a) provides the information necessary for the 
request to be considered, the President shall publish in the Federal 
Register a notice of commencement of consideration of the request, and 
notice seeking public comments regarding the request. The notice shall 
include a summary of the request and the dates by which comments and 
rebuttals must be received.
    SEC. 322. DETERMINATION AND PROVISION OF RELIEF.
    (a) Determination.--
        (1) In general.--If a positive determination is made under 
    section 321(b), the President shall determine whether, as a result 
    of the elimination of a duty under the Agreement, a Panamanian 
    textile or apparel article is being imported into the United States 
    in such increased quantities, in absolute terms or relative to the 
    domestic market for that article, and under such conditions as to 
    cause serious damage, or actual threat thereof, to a domestic 
    industry producing an article that is like, or directly competitive 
    with, the imported article.
        (2) Serious damage.--In making a determination under paragraph 
    (1), the President--
            (A) shall examine the effect of increased imports on the 
        domestic industry, as reflected in changes in such relevant 
        economic factors as output, productivity, utilization of 
        capacity, inventories, market share, exports, wages, 
        employment, domestic prices, profits, and investment, no one of 
        which is necessarily decisive; and
            (B) shall not consider changes in consumer preference or 
        changes in technology as factors supporting a determination of 
        serious damage or actual threat thereof.
        (3) Deadline for determination.--The President shall make the 
    determination under paragraph (1) not later than 30 days after the 
    completion of any consultations held pursuant to article 3.24.4 of 
    the Agreement.
    (b) Provision of Relief.--
        (1) In general.--If a determination under subsection (a) is 
    affirmative, the President may provide relief from imports of the 
    article that is the subject of such determination, as provided in 
    paragraph (2), to the extent that the President determines 
    necessary to remedy or prevent the serious damage and to facilitate 
    adjustment by the domestic industry.
        (2) Nature of relief.--The relief that the President is 
    authorized to provide under this subsection with respect to imports 
    of an article is an increase in the rate of duty imposed on the 
    article to a level that does not exceed the lesser of--
            (A) the column 1 general rate of duty imposed under the HTS 
        on like articles at the time the import relief is provided; or
            (B) the column 1 general rate of duty imposed under the HTS 
        on like articles on the day before the date on which the 
        Agreement enters into force.
    SEC. 323. PERIOD OF RELIEF.
    (a) In General.--Subject to subsection (b), any import relief that 
the President provides under section 322(b) may not, in the aggregate, 
be in effect for more than 3 years.
    (b) Extension.--If the initial period for any import relief 
provided under section 322 is less than 3 years, the President may 
extend the effective period of any import relief provided under that 
section, subject to the limitation set forth in subsection (a), if the 
President determines that--
        (1) the import relief continues to be necessary to remedy or 
    prevent serious damage and to facilitate adjustment by the domestic 
    industry to import competition; and
        (2) there is evidence that the industry is making a positive 
    adjustment to import competition.
    SEC. 324. ARTICLES EXEMPT FROM RELIEF.
    The President may not provide import relief under this subtitle 
with respect to an article if--
        (1) import relief previously has been provided under this 
    subtitle with respect to that article; or
        (2) the article is subject to import relief under--
            (A) subtitle A; or
            (B) chapter 1 of title II of the Trade Act of 1974 (19 
        U.S.C. 2251 et seq.).
    SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
    On the date on which import relief under this subtitle is 
terminated with respect to an article, the rate of duty on that article 
shall be the rate that would have been in effect but for the provision 
of such relief.
    SEC. 326. TERMINATION OF RELIEF AUTHORITY.
    No import relief may be provided under this subtitle with respect 
to any article after the date that is 5 years after the date on which 
the Agreement enters into force.
    SEC. 327. COMPENSATION AUTHORITY.
    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under this subtitle 
shall be treated as action taken under chapter 1 of title II of such 
Act (19 U.S.C. 2251 et seq.).
    SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.
    The President may not release information received in connection 
with an investigation or determination under this subtitle which the 
President considers to be confidential business information unless the 
party submitting the confidential business information had notice, at 
the time of submission, that such information would be released by the 
President, or such party subsequently consents to the release of the 
information. To the extent a party submits confidential business 
information, the party shall also provide a nonconfidential version of 
the information in which the confidential business information is 
summarized or, if necessary, deleted.

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

    SEC. 331. FINDINGS AND ACTION ON PANAMANIAN ARTICLES.
    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
seq.), the Commission makes an affirmative determination (or a 
determination which the President may treat as an affirmative 
determination under such chapter by reason of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d))), the Commission shall also find 
(and report to the President at the time such injury determination is 
submitted to the President) whether imports of the Panamanian article 
are a substantial cause of serious injury or threat thereof.
    (b) Presidential Determination Regarding Imports of Panamanian 
Articles.--In determining the nature and extent of action to be taken 
under chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
seq.), the President may exclude from the action Panamanian articles 
with respect to which the Commission has made a negative finding under 
subsection (a).

                        TITLE IV--MISCELLANEOUS

    SEC. 401. ELIGIBLE PRODUCTS.
    Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C. 
2518(4)(A)) is amended--
        (1) by striking ``or'' at the end of clause (viii);
        (2) by striking the period at the end of clause (ix) and 
    inserting ``; or''; and
        (3) by adding at the end the following new clause:
                ``(x) a party to the United States-Panama Trade 
            Promotion Agreement, a product or service of that country 
            or instrumentality which is covered under that agreement 
            for procurement by the United States.''.
    SEC. 402. MODIFICATION TO THE CARIBBEAN BASIN ECONOMIC RECOVERY 
      ACT.
    (a) In General.--Section 212(b) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2702(b)) is amended by striking ``Panama'' from 
the list of countries eligible for designation as beneficiary 
countries.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on the date on which the President terminates the designation of 
Panama as a beneficiary country pursuant to section 201(a)(3) of this 
Act.

                            TITLE V--OFFSETS

    SEC. 501. EXTENSION OF CUSTOMS USER FEES.
    Section 13031(j)(3) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended by adding 
at the end the following:
    ``(D) Notwithstanding subparagraph (B)(i), fees may be charged 
under paragraphs (1) through (8) of subsection (a) during the period 
beginning on September 1, 2021, and ending on September 30, 2021.''.
    SEC. 502. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
    Notwithstanding section 6655 of the Internal Revenue Code of 1986, 
in the case of a corporation with assets of not less than 
$1,000,000,000 (determined as of the end of the preceding taxable 
year)--
        (1) the amount of any required installment of corporate 
    estimated tax which is otherwise due in July, August, or September 
    of 2012 shall be increased by 0.25 percent of such amount 
    (determined without regard to any increase in such amount not 
    contained in such Code);
        (2) the amount of any required installment of corporate 
    estimated tax which is otherwise due in July, August, or September 
    of 2016 shall be increased by 0.25 percent of such amount 
    (determined without regard to any increase in such amount not 
    contained in such Code); and
        (3) the amount of the next required installment after an 
    installment referred to in paragraph (1) or (2) shall be 
    appropriately reduced to reflect the amount of the increase by 
    reason of such paragraph.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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