```

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3080 Enrolled Bill (ENR)]

        H.R.3080

                      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-Korea Free Trade Agreement.

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

Sec. 1. Short title.
Sec. 2. Purposes.
Sec. 3. Definitions.

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

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

                      TITLE II--CUSTOMS PROVISIONS

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

                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.

     Subtitle A--Relief From Imports Benefitting From the Agreement

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

              Subtitle B--Motor Vehicle Safeguard Measures

Sec. 321. Motor vehicle safeguard measures.

           Subtitle C--Textile and Apparel Safeguard Measures

Sec. 331. Commencement of action for relief.
Sec. 332. Determination and provision of relief.
Sec. 333. Period of relief.
Sec. 334. Articles exempt from relief.
Sec. 335. Rate after termination of import relief.
Sec. 336. Termination of relief authority.
Sec. 337. Compensation authority.
Sec. 338. Confidential business information.

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

Sec. 341. Findings and action on Korean articles.

                          TITLE IV--PROCUREMENT

Sec. 401. Eligible products.

                            TITLE V--OFFSETS

Sec. 501. Increase in penalty on paid preparers who fail to comply with 
          earned income tax credit due diligence requirements.
Sec. 502. Requirement for prisons located in the United States to 
          provide information for tax administration.
Sec. 503. Rate for merchandise processing fees.
Sec. 504. Extension of customs user fees.
Sec. 505. Time for payment of corporate estimated taxes.
SEC. 2. PURPOSES.
    The purposes of this Act are--
        (1) to approve and implement the free trade agreement between 
    the United States and Korea 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 secure the benefits of the agreement entered into 
    pursuant to an exchange of letters between the United States and 
    the Government of Korea on February 10, 2011;
        (3) to strengthen and develop economic relations between the 
    United States and Korea for their mutual benefit;
        (4) to establish free trade between the United States and Korea 
    through the reduction and elimination of barriers to trade in goods 
    and services and to investment; and
        (5) 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-
    Korea Free Trade 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) Korea.--The term ``Korea'' means the Republic of Korea.
        (5) 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)).

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-Korea Free Trade Agreement entered into 
    on June 30, 2007, with the Government of Korea, 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 Korea 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 Korea 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 on which 
    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 22 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 $750,000 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 22 of the Agreement.
    SEC. 106. ARBITRATION OF CLAIMS.
    The United States is authorized to resolve any claim against the 
United States covered by article 11.16.1(a)(i)(C) or article 
11.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 
Dispute Settlement procedures set forth in section B of chapter 11 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, section 207(g), 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 203, 204, 206, and 401 of this Act take effect on the date 
    of the enactment of this Act and apply with respect to Korea 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.--The 
President may proclaim--
        (1) such modifications or continuation of any duty,
        (2) such continuation of duty-free or excise treatment, or
        (3) such additional duties,
as the President determines to be necessary or appropriate to carry out 
or apply articles 2.3, 2.5, and 2.6, and Annex 2-B, Annex 4-B, and 
Annex 22-A, of the Agreement.
    (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 
    Korea regarding the staging of any duty treatment set forth in 
    Annex 2-B 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 Korea 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 2-B 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 Treatment of Motor Vehicles.--The President may proclaim 
the following tariff treatment with respect to the following motor 
vehicles of Korea:
        (1) Certain passenger cars.--In the case of originating goods 
    of Korea classifiable under subheading 8703.10.10, 8703.10.50, 
    8703.21.00, 8703.22.00, 8703.23.00, 8703.24.00, 8703.31.00, 
    8703.32.00, or 8703.33.00 of the HTS that are entered, or withdrawn 
    from warehouse for consumption--
            (A) the rate of duty for such goods shall be 2.5 percent 
        for year 1 of the Agreement through year 4 of the Agreement; 
        and
            (B) such goods shall be free of duty for each year 
        thereafter.
        (2) Electric motor vehicles.--In the case of originating goods 
    of Korea classifiable under subheading 8703.90.00 of the HTS that 
    are entered, or withdrawn from warehouse for consumption--
            (A) the rate of duty for such goods shall be--
                (i) 2.0 percent for year 1 of the Agreement;
                (ii) 1.5 percent for year 2 of the Agreement;
                (iii) 1.0 percent for year 3 of the Agreement; and
                (iv) 0.5 percent for year 4 of the Agreement; and
            (B) such goods shall be free of duty for each year 
        thereafter.
        (3) Certain trucks.--In the case of originating goods of Korea 
    classifiable under subheading 8704.21.00, 8704.22.50, 8704.23.00, 
    8704.31.00, 8704.32.00, or 8704.90.00 of the HTS that are entered, 
    or withdrawn from warehouse for consumption--
            (A) the rate of duty for such goods shall be--
                (i) 25 percent for year 1 of the Agreement through year 
            7 of the Agreement;
                (ii) 16.6 percent for year 8 of the Agreement; and
                (iii) 8.3 percent for year 9 of the Agreement; and
            (B) such goods shall be free of duty for each year 
        thereafter.
        (4) Definitions.--In this subsection--
            (A) 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; and
            (B) the terms ``year 2 of the Agreement'', ``year 3 of the 
        Agreement'', ``year 4 of the Agreement'', ``year 5 of the 
        Agreement'', ``year 6 of the Agreement'', ``year 7 of the 
        Agreement'', ``year 8 of the Agreement'', and ``year 9 of the 
        Agreement'' mean the second, third, fourth, fifth, sixth, 
        seventh, eighth, and ninth calendar years, respectively, in 
        which the Agreement is in force.
    SEC. 202. 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 
    Korea 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 Korea, the United States, or both;
        (2) the good--
            (A) is produced entirely in the territory of Korea, 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-A or Annex 6-A 
            of the Agreement; or
                (ii) the good otherwise satisfies any applicable 
            regional value-content or other requirements specified in 
            Annex 4-A or Annex 6-A of the Agreement; and
            (B) satisfies all other applicable requirements of this 
        section; or
        (3) the good is produced entirely in the territory of Korea, 
    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 6-A 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, other than indirect 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, other than indirect 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 6-A 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, other than indirect 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 Korea 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 Korea 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 Korea 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 Korea 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 
            Korea 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 Korea, 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 Korea, 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 Korea, 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 Korea, 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 Korea, 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 Korea 
    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 Korea, 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 6-A of the Agreement is an originating good if--
            (A) the value of all nonoriginating materials used in the 
        production of the good that do not undergo the applicable 
        change in tariff classification (set forth in Annex 6-A 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 3 
        that is used in the production of a good provided for in 
        chapter 3.
            (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 or 
        2106.90, that is used in the production of a good provided for 
        in chapter 4.
            (C) 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 any 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.
            (D) A nonoriginating material provided for in chapter 7 
        that is used in the production of a good provided for in 
        subheading 0703.10, 0703.20, 0709.59, 0709.60, 0711.90, 
        0712.20, 0714.20, or any of subheadings 0710.21 through 0710.80 
        or 0712.39 through 0713.10.
            (E) A nonoriginating material provided for in heading 1006, 
        or a nonoriginating rice product provided for in chapter 11 
        that is used in the production of a good provided for in 
        heading 1006, 1102, 1103, 1104, or subheading 1901.20 or 
        1901.90.
            (F) 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.
            (G) Nonoriginating peaches, pears, or apricots provided for 
        in chapter 8 or 20 that are used in the production of a good 
        provided for in heading 2008.
            (H) A nonoriginating material provided for in chapter 15 
        that is used in the production of a good provided for in any of 
        headings 1501 through 1508, or heading 1512, 1514, or 1515.
            (I) 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.
            (J) A nonoriginating material provided for in chapter 17 
        that is used in the production of a good provided for in 
        subheading 1806.10.
            (K) Except as provided in subparagraphs (A) through (J) and 
        Annex 6-A 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-A of the Agreement, shall 
        be considered to be an originating good if the total weight of 
        all such fibers or yarns in that component is not more than 7 
        percent of the total weight of that component.
            (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 Korea, the 
        United States, or both.
            (C) Yarn, fabric, or fiber.--For purposes of this 
        paragraph, in the case of a good that is a yarn, fabric, 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 Korea 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 6-A 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; 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-A or Annex 6-A 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 disregarded 
in determining whether a good is an originating good.
    (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 Korea 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 Korea 
    or the United States; or
        (2) does not remain under the control of customs authorities in 
    the territory of a country other than Korea or the United States.
    (m) Goods Classifiable as Goods Put up in Sets.--Notwithstanding 
the rules set forth in Annex 4-A and Annex 6-A 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 Korea 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 korea, the united states, or both.--The term ``good wholly 
    obtained or produced entirely in the territory of Korea, the United 
    States, or both'' means any of the following:
            (A) Plants and plant products grown, and harvested or 
        gathered, in the territory of Korea, the United States, or 
        both.
            (B) Live animals born and raised in the territory of Korea, 
        the United States, or both.
            (C) Goods obtained in the territory of Korea, the United 
        States, or both from live animals.
            (D) Goods obtained from hunting, trapping, fishing, or 
        aquaculture conducted in the territory of Korea, 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 Korea, the United States, or both.
            (F) Fish, shellfish, and other marine life taken from the 
        sea, seabed, or subsoil outside the territory of Korea or the 
        United States by--
                (i) a vessel that is registered or recorded with Korea 
            and flying the flag of Korea; 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 Korea and flies the 
            flag of Korea; or
                (ii) is a vessel that is documented under the laws of 
            the United States.
            (H)(i) Goods taken by Korea or a person of Korea from the 
        seabed or subsoil outside the territory of Korea, the United 
        States, or both, if Korea has rights to exploit such seabed or 
        subsoil; or
            (ii) Goods taken by the United States or a person of the 
        United States from the seabed or subsoil outside the territory 
        of the United States, Korea, or both, if the United States has 
        rights to exploit such seabed or subsoil.
            (I) Goods taken from outer space, if the goods are obtained 
        by Korea or the United States or a person of Korea or the 
        United States and not processed in the territory of a country 
        other than Korea or the United States.
            (J) Waste and scrap derived from--
                (i) manufacturing or processing operations in the 
            territory of Korea, the United States, or both; or
                (ii) used goods collected in the territory of Korea, 
            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 Korea, the 
        United States, or both, from used goods, and used in the 
        territory of Korea, the United States, or both, in the 
        production of remanufactured goods.
            (L) Goods, at any stage of production, produced in the 
        territory of Korea, 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 non-allowable 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 2.10.4 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 Korea or 
    the United States.
        (17) Production.--The term ``production'' means growing, 
    mining, harvesting, fishing, breeding, 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, 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.--
            (A) In general.--The term ``total cost''--
                (i) means all product costs, period costs, and other 
            costs for a good incurred in the territory of Korea, the 
            United States, or both; and
                (ii) does not include profits that are earned by the 
            producer, regardless of whether they are retained by the 
            producer or paid out to other persons as dividends, or 
            taxes paid on those profits, including capital gains taxes.
            (B) Other definitions.--In this paragraph:
                (i) Product costs.--The term ``product costs'' means 
            costs that are associated with the production of a good and 
            include the value of materials, direct labor costs, and 
            direct overhead.
                (ii) Period costs.--The term ``period costs'' means 
            costs, other than product costs, that are expensed in the 
            period in which they are incurred, such as selling expenses 
            and general and administrative expenses.
                (iii) Other costs.--The term ``other costs'' means all 
            costs recorded on the books of the producer that are not 
            product costs or period costs, such as interest.
        (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-A and Annex 6-A of 
        the Agreement; and
            (B) any additional subordinate category that is necessary 
        to carry out this title consistent with the Agreement.
        (2) 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-A of the Agreement).
            (B) Additional proclamations.--Notwithstanding subparagraph 
        (A), and subject to the consultation and layover provisions of 
        section 104, the President may proclaim--
                (i) such modifications to the provisions proclaimed 
            under the authority of paragraph (1)(A) as are necessary to 
            implement an agreement with Korea pursuant to article 4.2.5 
            of the Agreement; and
                (ii) 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-A of the Agreement).
        (3) Fibers, yarns, or fabrics not available in commercial 
    quantities in the united states.--
            (A) In general.--Notwithstanding paragraph (2)(A), the list 
        of fibers, yarns, and fabrics set forth in the list of the 
        United States in Appendix 4-B-1 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 Korea, 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 fibers, yarns, or fabrics.--
                (i) In general.--An interested entity may request the 
            President to determine that a fiber, yarn, or fabric is not 
            available in commercial quantities in a timely manner in 
            the United States and to add that fiber, yarn, or fabric to 
            the list of the United States in Appendix 4-B-1 of the 
            Agreement.
                (ii) Determination.--After receiving a request under 
            clause (i), the President may determine whether--

                    (I) the fiber, yarn, or fabric is available in 
                commercial quantities in a timely manner in 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 fiber, yarn, or fabric that is the subject of the 
            request is added to the list of the United States in 
            Appendix 4-B-1 of the Agreement, if the President has 
            determined under clause (ii) that--

                    (I) the fiber, yarn, or fabric is not available in 
                commercial quantities in a timely manner in 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 60 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.
            (D) Deemed denial of request.--If, after an interested 
        entity submits a request under subparagraph (C)(i), the 
        President does not, within 30 days of the expiration of the 
        applicable time period specified in subparagraph (C)(iv), make 
        a determination under subparagraph (C)(ii) regarding the 
        request, the request shall be considered to be denied.
            (E) Requests to remove fibers, yarns, or fabrics.--
                (i) In general.--An interested entity may request the 
            President to remove from the list of the United States in 
            Appendix 4-B-1 of the Agreement, any fiber, yarn, or fabric 
            that has been added to that list pursuant to subparagraph 
            (C)(iii).
                (ii) Proclamation authority.--Not later than 30 days 
            after the date on which a request under clause (i) is 
            submitted, the President may proclaim that the fiber, yarn, 
            or fabric that is the subject of the request is removed 
            from the list of the United States in Appendix 4-B-1 of the 
            Agreement if the President determines that the fiber, yarn, 
            or fabric is available in commercial quantities in a timely 
            manner in the United States.
                (iii) Effective date.--A proclamation issued under 
            clause (ii) 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 (E)(ii).
    SEC. 203. 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 
(18) the following:
    ``(19) No fee may be charged under subsection (a) (9) or (10) with 
respect to goods that qualify as originating goods under section 202 of 
the United States-Korea Free Trade 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. 204. 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 (11) as paragraph (12); and
            (B) by inserting after paragraph (10) the following new 
        paragraph:
        ``(11) Prior disclosure regarding claims under the united 
    states-korea free trade 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 
    202 of the United States-Korea Free Trade 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:
    ``(j) False Certifications of Origin Under the United States-Korea 
Free Trade 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 KFTA 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 202 of the United States-Korea Free Trade 
    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 KFTA 
    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 KFTA 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:
    ``(j) Denial of Preferential Tariff Treatment Under the United 
States-Korea Free Trade 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 202 of the United States-Korea Free Trade 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-Korea Free Trade 
Agreement Implementation Act 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 
202.''.
    SEC. 205. 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 202 
    of the United States-Korea Free Trade Agreement Implementation Act 
    for which''.
    SEC. 206. RECORDKEEPING REQUIREMENTS.
    Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
        (1) by redesignating subsection (i) as subsection (j);
        (2) by inserting after subsection (h) the following new 
    subsection:
    ``(i) Certifications of Origin for Goods Exported Under the United 
States-Korea Free Trade 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) KFTA certification of origin.--The term `KFTA 
        certification of origin' means the certification established 
        under article 6.15 of the United States-Korea Free Trade 
        Agreement that a good qualifies as an originating good under 
        such Agreement.
        ``(2) Exports to korea.--Any person who completes and issues a 
    KFTA 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 KFTA 
    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 (j), as so redesignated, by striking ``(g), 
    or (h)'' and inserting ``(g), (h), or (i)''.
    SEC. 207. 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 Korea to conduct a verification pursuant to article 
    4.3 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 exporter or producer in Korea is complying with 
        applicable customs laws, regulations, procedures, requirements, 
        and practices affecting trade in textile or apparel goods; or
            (B) a claim that a textile or apparel good exported or 
        produced by such exporter or producer--
                (i) qualifies as an originating good under section 202, 
            or
                (ii) is a good of Korea,
        is accurate.
    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
        (1) suspension of liquidation of the entry 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), in a case in which the request 
    for verification was based on a reasonable suspicion of unlawful 
    activity related to such goods; and
        (2) suspension of liquidation of the entry of a textile or 
    apparel good for which a claim has been made that is the subject of 
    a verification under subsection (a)(1) regarding a claim described 
    in subsection (a)(2)(B).
    (c) Action When Information Is Insufficient.--If the Secretary of 
the Treasury determines that the information obtained within 12 months 
after making a request for a verification under subsection (a)(1) is 
insufficient to make a determination under subsection (a)(2), the 
President may direct the Secretary 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); 
        or
            (B) the textile or apparel good for which a claim has been 
        made that is the subject of a verification under subsection 
        (a)(1) regarding a claim described in subsection (a)(2)(B); and
        (2) denial of entry into the United States of--
            (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); 
        or
            (B) a textile or apparel good for which a claim has been 
        made that is the subject of a verification under subsection 
        (a)(1) regarding a claim described in subsection (a)(2)(B).
    (e) Publication of Name of Person.--In accordance with article 
4.3.11 of the Agreement, the Secretary of the Treasury may publish the 
name of any person that the Secretary has determined--
        (1) is engaged in 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, textile or apparel goods.
    (f) Certificate of Eligibility.--The Commissioner responsible for 
U.S. Customs and Border Protection of the Department of Homeland 
Security may require an importer to submit at the time the importer 
files a claim for preferential tariff treatment under Annex 4-B of the 
Agreement a certificate of eligibility, properly completed and signed 
by an authorized official of the Government of Korea.
    (g) Verifications in the United States.--If the government of a 
country that is a party to a free trade agreement with the United 
States makes a request for a verification pursuant to that agreement, 
the Secretary of the Treasury may request a verification of the 
production of any textile or apparel good in order to assist that 
government in determining whether--
        (1) a claim of origin under the agreement for a textile or 
    apparel good is accurate; or
        (2) an exporter, producer, or other enterprise located in the 
    United States involved in the movement of textile or apparel goods 
    from the United States to the territory of the requesting 
    government is complying with applicable customs laws, regulations, 
    and procedures regarding trade in textile or apparel goods.
    SEC. 208. REGULATIONS.
    The Secretary of the Treasury shall prescribe such regulations as 
may be necessary to carry out--
        (1) subsections (a) through (n) of section 202;
        (2) the amendment made by section 203; and
        (3) any proclamation issued under section 202(o).

                     TITLE III--RELIEF FROM IMPORTS

    SEC. 301. DEFINITIONS.
    In this title:
        (1) Korean article.--The term ``Korean article'' means an 
    article that qualifies as an originating good under section 202(b).
        (2) Korean motor vehicle article.--The term ``Korean motor 
    vehicle article'' means a good provided for in heading 8703 or 8704 
    of the HTS that qualifies as an originating good under section 
    202(b).
        (3) Korean textile or apparel article.--The term ``Korean 
    textile or apparel article'' means a textile or apparel good (as 
    defined in section 3(5)) that is a Korean article.

     Subtitle A--Relief From Imports Benefitting From the Agreement

    SEC. 311. COMMENCING OF ACTION FOR RELIEF.
    (a) Filing of Petition.--
        (1) In general.--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.
        (2) Provisional relief.--An entity filing a petition under this 
    subsection may request that provisional relief be provided as if 
    the petition had been filed under section 202(a) of the Trade Act 
    of 1974 (19 U.S.C. 2252(a)).
        (3) Critical circumstances.--Any allegation that critical 
    circumstances exist shall be included in the petition.
    (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 Korean 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 Korean 
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 (d).
        (4) Subsection (i).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Korean article if, 
after the date on which the Agreement enters into force, import relief 
has been provided with respect to that Korean article under this 
subtitle.
    SEC. 312. COMMISSION ACTION ON PETITION.
    (a) Determination.--Not later than 120 days (180 days if critical 
circumstances have been alleged) 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.--Except as provided in paragraph (2), 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 2-B 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) Duties applied on a seasonal basis.--In the case of imports 
    of an article to which a duty is applied on a seasonal basis, the 
    import relief that the President is authorized to provide under 
    this section is as follows:
            (A) The suspension of any further reduction provided for 
        under Annex 2-B 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 for the corresponding season 
            immediately preceding the date the import relief is 
            provided; or
                (ii) the column 1 general rate of duty imposed under 
            the HTS for the corresponding season immediately preceding 
            the date on which the Agreement enters into force.
        (3) 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 10.2.7 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 be in effect 
    for more than 2 years.
        (2) Extension.--
            (A) In general.--Subject to subparagraph (C), 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 by up to 1 year, 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.
            (C) Period of import relief.--Any import relief provided 
        under this section, including any extensions thereof, may not, 
        in the aggregate, be in effect for more than 3 years.
    (e) Rate After Termination of Import Relief.--Beginning on the date 
on which import relief under this section 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.
    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on any article that is subject to import relief 
under--
        (1) subtitle B or C; or
        (2) chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 
    2251 et seq.).
    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 2-
B 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.
    (c) Presidential Determination.--Import relief may be provided 
under this subtitle in the case of a Korean article after the date on 
which such relief would, but for this subsection, terminate under 
subsection (a) and (b), if the President determines that Korea has 
consented to such relief.
    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-Korea Free Trade Agreement Implementation 
    Act''.

              Subtitle B--Motor Vehicle Safeguard Measures

    SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES.
    The provisions of subtitle A shall apply with respect to a Korean 
motor vehicle article to the same extent that such provisions apply to 
Korean articles, except as follows:
        (1) Section 311(d) and paragraphs (2) and (3) of 313(c) shall 
    not apply.
        (2) Section 313(d)(2)(A) shall be applied and administered by 
    substituting ``2 years'' for ``1 year''.
        (3) Section 313(d)(2)(C) shall be applied and administered by 
    substituting ``4 years'' for ``3 years''.
        (4) Section 313(f)(1) shall be applied and administered by 
    substituting ``subtitle A'' for ``subtitle B or C''.
        (5) Section 314(b) shall be applied and administered as if such 
    section read as follows:
    ``(b) Exception.--Import relief may be provided under this subtitle 
with respect to a Korean motor vehicle article during any period before 
the date that is 10 years after the date on which duties on the article 
are eliminated, as set forth in section 201(d), or, if the article is 
not referred to in section 201(d), the Schedule of the United States to 
Annex 2-B of the Agreement.''.

           Subtitle C--Textile and Apparel Safeguard Measures

    SEC. 331. 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. 332. DETERMINATION AND PROVISION OF RELIEF.
    (a) Determination.--
        (1) In general.--If a positive determination is made under 
    section 331(b), the President shall determine whether, as a result 
    of the reduction or elimination of a duty under the Agreement, a 
    Korean 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 technology or consumer 
        preference as factors supporting a determination of serious 
        damage or actual threat thereof.
    (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--
            (A) the suspension of any further reduction provided for 
        under Annex 2-B of the Agreement in the duty imposed on the 
        article; or
            (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.
    SEC. 333. PERIOD OF RELIEF.
    (a) In General.--Subject to subsection (b), the import relief that 
the President provides under section 332(b) may not be in effect for 
more than 2 years.
    (b) Extension.--
        (1) In general.--Subject to paragraph (2), the President may 
    extend the effective period of any import relief provided under 
    this subtitle for a period of not more than 2 years, if the 
    President determines that--
            (A) 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
            (B) there is evidence that the industry is making a 
        positive adjustment to import competition.
        (2) Limitation.--Any relief provided under this subtitle, 
    including any extensions thereof, may not, in the aggregate, be in 
    effect for more than 4 years.
    SEC. 334. 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. 335. 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. 336. TERMINATION OF RELIEF AUTHORITY.
    No import relief may be provided under this subtitle with respect 
to any article after the date that is 10 years after the date on which 
duties on the article are eliminated pursuant to the Agreement.
    SEC. 337. 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. 338. 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 D--Cases Under Title II of the Trade Act of 1974

    SEC. 341. FINDINGS AND ACTION ON KOREAN 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 Korean article are a 
substantial cause of serious injury or threat thereof.
    (b) Presidential Determination Regarding Korean 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 Korean articles with respect to 
which the Commission has made a negative finding under subsection (a).

                         TITLE IV--PROCUREMENT

    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 (vi);
        (2) by striking the period at the end of clause (vii) and 
    inserting ``; or''; and
        (3) by adding at the end the following new clause:
                ``(viii) a party to the United States-Korea Free Trade 
            Agreement, a product or service of that country or 
            instrumentality which is covered under that agreement for 
            procurement by the United States.''.

                            TITLE V--OFFSETS

    SEC. 501. INCREASE IN PENALTY ON PAID PREPARERS WHO FAIL TO COMPLY 
      WITH EARNED INCOME TAX CREDIT DUE DILIGENCE REQUIREMENTS.
    (a) In General.--Section 6695(g) of the Internal Revenue Code of 
1986 is amended by striking ``$100'' and inserting ``$500''.
    (b) Effective Date.--The amendment made by this section shall apply 
to returns required to be filed after December 31, 2011.
    SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE UNITED STATES TO 
      PROVIDE INFORMATION FOR TAX ADMINISTRATION.
    (a) In General.--Subchapter B of chapter 61 of the Internal Revenue 
Code of 1986 is amended by redesignating section 6116 as section 6117 
and by inserting after section 6115 the following new section:
``SEC. 6116. REQUIREMENT FOR PRISONS LOCATED IN UNITED STATES TO 
PROVIDE INFORMATION FOR TAX ADMINISTRATION.
    ``(a) In General.--Not later than September 15, 2012, and annually 
thereafter, the head of the Federal Bureau of Prisons and the head of 
any State agency charged with the responsibility for administration of 
prisons shall provide to the Secretary in electronic format a list with 
the information described in subsection (b) of all the inmates 
incarcerated within the prison system for any part of the prior 2 
calendar years or the current calendar year through August 31.
    ``(b) Information.--The information with respect to each inmate 
is--
        ``(1) first, middle, and last name,
        ``(2) date of birth,
        ``(3) institution of current incarceration or, for released 
    inmates, most recent incarceration,
        ``(4) prison assigned inmate number,
        ``(5) the date of incarceration,
        ``(6) the date of release or anticipated date of release,
        ``(7) the date of work release,
        ``(8) taxpayer identification number and whether the prison has 
    verified such number,
        ``(9) last known address, and
        ``(10) any additional information as the Secretary may request.
    ``(c) Format.--The Secretary shall determine the electronic format 
of the information described in subsection (b).''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
is amended by striking the item relating to section 6116 and by adding 
at the end the following new items:

``Sec. 6116. Requirement for prisons located in United States to provide 
          information for tax administration.
``Sec. 6117. Cross reference.''.
    SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES.
    For the period beginning on December 1, 2015, and ending on June 
30, 2021, section 13031(a)(9) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be applied and 
administered--
        (1) in subparagraph (A), by substituting ``0.3464'' for 
    ``0.21''; and
        (2) in subparagraph (B)(i), by substituting ``0.3464'' for 
    ``0.21''.
    SEC. 504. EXTENSION OF CUSTOMS USER FEES.
    (a) In General.--Section 13031(j)(3)(A) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) is amended 
by striking ``January 7, 2020'' and inserting ``August 2, 2021''.
    (b) Other Fees.--Section 13031(j)(3)(B)(i) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i)) 
is amended by striking ``January 14, 2020'' and inserting ``December 8, 
2020''.
    SEC. 505. 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 2.75 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.
```