108TH CONGRESS
1ST SESSION
H. R. 2738
AN ACT
To implement the United States-Chile Free Trade
Agreement.
108TH CONGRESS
1ST SESSION
H. R. 2738
AN ACT
To implement the United States-Chile Free Trade
Agreement.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘United States-Chile Free Trade Agreement Implementa-
tion Act’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING
TO, THE AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the agreement to United States and State law.
Sec. 103. Consultation and layover provisions for, and effective date of, pro-
claimed actions.
Sec. 104. Implementing actions in anticipation of entry into force and initial
regulations.
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. Drawback.
Sec. 204. Customs user fees.
Sec. 205. Disclosure of incorrect information; denial of preferential tariff treat-
ment; false certificates of origin.
Sec. 206. Reliquidation of entries.
Sec. 207. Recordkeeping requirements.
Sec. 208. Enforcement of textile and apparel rules of origin.
Sec. 209. Conforming amendments.
Sec. 210. Regulations.
TITLE III—RELIEF FROM IMPORTS
Sec. 301. Definitions.
Subtitle A—Relief From Imports Benefiting From the Agreement
Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.
Subtitle B—Textile and Apparel Safeguard Measures
Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Business confidential information.
TITLE IV—TEMPORARY ENTRY OF BUSINESS PERSONS
Sec. 401. Nonimmigrant traders and investors.
Sec. 402. Nonimmigrant professionals; labor attestation.
Sec. 403. Labor disputes.
Sec. 404. Conforming amendments.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to approve and implement the Free Trade
Agreement between the United States and the Re-
public of Chile entered into under the authority of
section 2103(b) of the Bipartisan Trade Promotion
Authority Act of 2002;
(2) to strengthen and develop economic rela-
tions between the United States and Chile for their
mutual benefit;
(3) to establish free trade between the two na-
tions through the reduction and elimination of bar-
riers to trade in goods and services and to invest-
ment; and
(4) to lay the foundation for further coopera-
tion to expand and enhance the benefits of such
Agreement.
SEC. 3. DEFINITIONS.
In this Act:
(1) 
AGREEMENT.—The 
term 
‘‘Agreement’’
means the United States-Chile Free Trade Agree-
ment approved by the Congress under section
101(a)(1).
(2) HTS.—The term ‘‘HTS’’ means the Har-
monized Tariff Schedule of the United States.
(3) 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 
RE-
LATING 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), the Congress approves—
(1) the United States-Chile Free Trade Agree-
ment entered into on June 6, 2003, with the Gov-
ernment of Chile and submitted to the Congress on
July 15, 2003; and
(2) the statement of administrative action pro-
posed to implement the Agreement that was sub-
mitted to the Congress on July 15, 2003.
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE
AGREEMENT.—At such time as the President determines
that Chile has taken measures necessary to bring it into
compliance with the provisions of the Agreement that take
effect on the date on which the Agreement enters into
force, the President is authorized to exchange notes with
the Government of Chile providing for the entry into force,
on or after January 1, 2004, of the Agreement for the
United States.
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED
STATES AND STATE LAW.
(a) RELATIONSHIP TO UNITED STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CON-
FLICT.—No provision of the Agreement, nor the ap-
plication of any such provision to any person or cir-
cumstance, 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 PRI-
VATE 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. CONSULTATION AND LAYOVER PROVISIONS FOR,
AND EFFECTIVE DATE OF, PROCLAIMED AC-
TIONS.
(a) 
CONSULTATION
AND
LAYOVER
REQUIRE-
MENTS.—If a provision of this Act provides that the imple-
mentation 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 United States International Trade
Commission;
(2) the President has submitted a report to the
Committee on Ways and Means of the House of
Representatives and the Committee on Finance of
the Senate 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 such Com-
mittees regarding the proposed action during the pe-
riod referred to in paragraph (3).
(b) EFFECTIVE DATE OF CERTAIN PROCLAIMED AC-
TIONS.—Any action proclaimed by the President under the
authority of this Act that is not subject to the consultation
and layover provisions under subsection (a) may not take
effect before the 15th day after the date on which the text
of the proclamation is published in the Federal Register.
SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF
ENTRY INTO FORCE AND INITIAL REGULA-
TIONS.
(a) IMPLEMENTING ACTIONS.—
(1) PROCLAMATION
AUTHORITY.—After the
date of enactment of this Act—
(A) the President may proclaim such ac-
tions, and
(B) other appropriate officers of the
United States Government may issue such reg-
ulations,
as may be necessary to ensure that any provision of
this Act, or amendment made by this Act, that takes
effect on the date the Agreement enters into force
is appropriately implemented on such date, but no
such proclamation or regulation may have an effec-
tive date earlier than the date of entry into force.
(2) WAIVER OF 15-DAY RESTRICTION.—The 15-
day restriction contained in section 103(b) on the
taking effect of proclaimed actions is waived to the
extent that the application of such restriction would
prevent the taking effect on the date the Agreement
enters into force of any action proclaimed under this
section.
(b) INITIAL REGULATIONS.—Initial regulations nec-
essary or appropriate to carry out the actions required by
or authorized under this Act or proposed in the statement
of administrative action referred to in section 101(a)(2)
to implement the Agreement shall, to the maximum extent
feasible, be issued within 1 year after the date of entry
into force of the Agreement. In the case of any imple-
menting action that takes effect on a date after the date
of entry into force of the Agreement, initial regulations
to carry out that action shall, to the maximum extent fea-
sible, be issued within 1 year after such effective date.
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO-
CEEDINGS.
(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—
The President is authorized to establish or designate with-
in the Department of Commerce an office that shall be
responsible for providing administrative assistance to pan-
els established under chapter 22 of the Agreement. The
office may 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 2003 to the Department of Commerce such
sums as may be necessary for the establishment and oper-
ations of the office under subsection (a) and for the pay-
ment of the United States share of the expenses of panels
established under chapter 22 of the Agreement.
SEC. 106. ARBITRATION OF CLAIMS.
(a) SUBMISSION OF CERTAIN CLAIMS.—The United
States is authorized to resolve any claim against the
United States covered by article 10.15(1)(a)(i)(C) or
10.15(1)(b)(i)(C) of the Agreement, pursuant to the In-
vestor-State Dispute Settlement procedures set forth in
section B of chapter 10 of the Agreement.
(b) CONTRACT CLAUSES.—All contracts executed by
any agency of the United States on or after the date of
entry into force of the Agreement shall contain a clause
specifying the law that will apply to resolve any breach
of contract claim.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
(a) EFFECTIVE DATES.—Except as provided in sub-
section (b), the provisions of this Act and the amendments
made by this Act take effect on the date the Agreement
enters into force.
(b) EXCEPTIONS.—Sections 1 through 3 and this
title take effect on the date of the enactment of this Act.
(c) TERMINATION
OF
THE AGREEMENT.—On the
date on which the Agreement ceases to be in force, the
provisions of this Act (other than this subsection) and the
amendments made by this Act shall cease to be effective.
TITLE II—CUSTOMS PROVISIONS
SEC. 201. TARIFF MODIFICATIONS.
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE
AGREEMENT.—
(1) PROCLAMATION
AUTHORITY.—The Presi-
dent may proclaim—
(A) such modifications or continuation of
any duty,
(B) such continuation of duty-free or ex-
cise treatment, or
(C) such additional duties,
as the President determines to be necessary or ap-
propriate to carry out or apply articles 3.3, 3.7, 3.9,
article 3.20 (8), (9), (10), and (11), and Annex 3.3
of the Agreement.
(2) EFFECT ON CHILEAN GSP STATUS.—Not-
withstanding section 502(a)(1) of the Trade Act of
1974 (19 U.S.C. 2462(a)(1)), the President shall
terminate the designation of Chile as a beneficiary
developing country for purposes of title V of the
Trade Act of 1974 on the date of entry into force
of the Agreement.
(b) OTHER TARIFF MODIFICATIONS.—Subject to the
consultation and layover provisions of section 103(a), the
President may proclaim—
(1) such modifications or continuation of any
duty,
(2) such modifications as the United States
may agree to with Chile regarding the staging of any
duty treatment set forth in Annex 3.3 of the Agree-
ment,
(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 Chile provided
for by the Agreement.
(c) ADDITIONAL TARIFFS ON AGRICULTURAL SAFE-
GUARD GOODS.—
(1) IN GENERAL.—In addition to any duty pro-
claimed under subsection (a) or (b), and subject to
paragraphs (3) through (5), the Secretary of the
Treasury shall assess a duty, in the amount pre-
scribed under paragraph (2), on an agricultural safe-
guard good if the Secretary of the Treasury deter-
mines that the unit import price of the good when
it enters the United States, determined on an
F.O.B. basis, is less than the trigger price indicated
for that good in Annex 3.18 of the Agreement or
any amendment thereto.
(2) CALCULATION OF ADDITIONAL DUTY.—The
amount of the additional duty assessed under this
subsection shall be determined as follows:
(A) If the difference between the unit im-
port price and the trigger price is less than, or
equal to, 10 percent of the trigger price, no ad-
ditional duty shall be imposed.