(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
MATE-
RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate-
rial’’ means a good or material, as the case may be, 
that is interchangeable with another good or mate-
rial for commercial purposes and the properties of 
which are essentially identical to such other good or 
material. 
(4) GENERALLY ACCEPTED ACCOUNTING PRIN-
CIPLES.—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 prepara-
tion of financial statements; and 
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(B) may encompass broad guidelines for 
general application as well as detailed stand-
ards, 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 ani-
mals. 
(D) Goods obtained from hunting, trap-
ping, 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. 
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(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 re-
corded 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 
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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 oper-
ations in the territory of Korea, the United 
States, or both; or 
(ii) used goods collected in the terri-
tory 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 terri-
tory 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, pro-
duced in the territory of Korea, the United 
States, or both, exclusively from— 
(i) goods referred to in any of sub-
paragraphs (A) through (J); or 
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(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 re-
spects 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, test-
ing, 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 ma-
terials, 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 
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(H) any other good that is not incor-
porated 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 orig-
inating 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 
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comparable maturities of the country in which the 
producer is located. 
(13) NONORIGINATING
GOOD
OR
NONORIGI-
NATING
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 pro-
tect 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, breed-
ing, raising, trapping, hunting, manufacturing, proc-
essing, assembling, or disassembling a good. 
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(18) REASONABLY ALLOCATE.—The term ‘‘rea-
sonably allocate’’ means to apportion in a manner 
that would be appropriate under generally accepted 
accounting principles. 
(19) RECOVERED
GOODS.—The term ‘‘recov-
ered goods’’ means materials in the form of indi-
vidual parts that are the result of— 
(A) the disassembly of used goods into in-
dividual parts; and 
(B) the cleaning, inspecting, testing, or 
other processing that is necessary for improve-
ment to sound working condition of such indi-
vidual parts. 
(20) REMANUFACTURED GOOD.—The term ‘‘re-
manufactured 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 re-
covered goods; and 
(B) has a similar life expectancy and en-
joys a factory warranty similar to such a good 
that is new. 
(21) TOTAL COST.— 
(A) 
IN
GENERAL.—The 
term 
‘‘total 
cost’’— 
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(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 para-
graph: 
(i) 
PRODUCT
COSTS.—The 
term 
‘‘product costs’’ means costs that are asso-
ciated with the production of a good and 
include the value of materials, direct labor 
costs, and direct overhead. 
(ii) PERIOD COSTS.—The term ‘‘pe-
riod costs’’ means costs, other than prod-
uct 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 
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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 con-
sistent with the Agreement. 
(2) MODIFICATIONS.— 
(A) IN GENERAL.—Subject to the consulta-
tion 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.—Not-
withstanding subparagraph (A), and subject to 
the consultation and layover provisions of sec-
tion 104, the President may proclaim— 
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(i) such modifications to the provi-
sions proclaimed under the authority of 
paragraph (1)(A) as are necessary to im-
plement an agreement with Korea pursu-
ant 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 Agree-
ment 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 Agree-
ment). 
(3) FIBERS, YARNS, OR FABRICS NOT AVAIL-
ABLE IN COMMERCIAL QUANTITIES IN THE UNITED 
STATES.— 
(A) IN GENERAL.—Notwithstanding para-
graph (2)(A), the list of fibers, yarns, and fab-
rics set forth in the list of the United States in 
Appendix 4-B-1 of the Agreement may be modi-
fied 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 
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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, Sun-
days, 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 man-
ner 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 
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the date on which the request is sub-
mitted, that the President does not 
have sufficient information to make a 
determination under clause (ii). 
(v) 
EFFECTIVE
DATE.—Notwith-
standing section 103(a)(2), a proclamation 
made under clause (iii) shall take effect on 
the date on which the text of the proclama-
tion 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 ap-
plicable time period specified in subparagraph 
(C)(iv), make a determination under subpara-
graph (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 pur-
suant to subparagraph (C)(iii). 
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(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 re-
quest 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 man-
ner in the United States. 
(iii) EFFECTIVE DATE.—A proclama-
tion 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 Fed-
eral Register. 
(F) PROCEDURES.—The President shall 
establish procedures— 
(i) governing the submission of a re-
quest under subparagraphs (C) and (E); 
and 
(ii) providing an opportunity for inter-
ested entities to submit comments and sup-
porting evidence before the President 
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makes a determination under subpara-
graph (C)(ii) or (E)(ii). 
SEC. 203. CUSTOMS USER FEES. 
Section 13031(b) of the Consolidated Omnibus Budg-
et 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 origi-
nating 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: 
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‘‘(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 incor-
rect 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 volun-
tarily makes a corrected declaration and pays any 
duties owing with respect to that good.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(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 Imple-
mentation Act. The procedures and penalties of this 
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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 im-
posed under this subsection if, promptly after an ex-
porter or producer that issued a KFTA certification 
of origin has reason to believe that such certification 
contains or is based on incorrect information, the ex-
porter or producer voluntarily provides written no-
tice of such incorrect information to every person to 
whom the certification was issued. 
‘‘(3) EXCEPTION.—A person shall not be con-
sidered 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 cir-
cumstances to all persons to whom the person 
provided the certification.’’. 
(b) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C. 
1514) is amended by adding at the end the following new 
subsection: 
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‘‘(j) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT UNDER THE UNITED STATES–KOREA FREE TRADE 
AGREEMENT.—If U.S. Customs and Border Protection or 
U.S. Immigration and Customs Enforcement of the De-
partment of Homeland Security finds indications of a pat-
tern 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 Imple-
mentation 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 Imple-
mentation Act to entries of identical goods covered by sub-
sequent representations by that importer, exporter, or pro-
ducer until U.S. Customs and Border Protection deter-
mines that representations of that person are in con-
formity 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 
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(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 fol-
lowing new subsection: 
‘‘(i) CERTIFICATIONS OF ORIGIN FOR GOODS EX-
PORTED UNDER
THE UNITED STATES–KOREA FREE 
TRADE AGREEMENT.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) RECORDS
AND
SUPPORTING
DOCU-
MENTS.—The term ‘records and supporting 
documents’ means, with respect to an exported 
good under paragraph (2), records and docu-
ments related to the origin of the good, includ-
ing— 
‘‘(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 
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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 Agree-
ment 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 there-
of). 
‘‘(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 
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(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 con-
duct 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 con-
ducted. 
(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, regula-
tions, 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 pro-
ducer— 
(i) qualifies as an originating good 
under section 202, or 
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(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 sub-
section (a)(1) regarding a claim described in sub-
section (a)(2)(B). 
(c) ACTION
WHEN
INFORMATION
IS
INSUFFI-
CIENT.—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 in-
sufficient to make a determination under subsection 
(a)(2), the President may direct the Secretary to take ap-
propriate action described in subsection (d) until such 
time as the Secretary receives information sufficient to 
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make the determination under subsection (a)(2) or until 
such earlier date as the President may direct. 
(d) APPROPRIATE
ACTION
DESCRIBED.—Appro-
priate 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 accord-
ance with article 4.3.11 of the Agreement, the Secretary 
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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 Commis-
sioner responsible for U.S. Customs and Border Protec-
tion 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 com-
pleted and signed by an authorized official of the Govern-
ment 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 gov-
ernment in determining whether— 
(1) a claim of origin under the agreement for 
a textile or apparel good is accurate; or 
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(2) an exporter, producer, or other enterprise 
located in the United States involved in the move-
ment of textile or apparel goods from the United 
States to the territory of the requesting government 
is complying with applicable customs laws, regula-
tions, 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 arti-
cle’’ 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 
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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 sub-
section to the United States Trade Representative. 
(2) PROVISIONAL RELIEF.—An entity filing a 
petition under this subsection may request that pro-
visional 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)). 
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(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 Commis-
sion, 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 provi-
sions 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). 
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(d) ARTICLES EXEMPT FROM INVESTIGATION.—No 
investigation may be initiated under this section with re-
spect 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 Com-
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mission to be an affirmative determination as pro-
vided 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 Presi-
dent 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 sub-
section shall be limited to the relief described in sec-
tion 313(c). 
(3) VOTING; SEPARATE
VIEWS.—Only those 
members of the Commission who voted in the af-
firmative under subsection (a) are eligible to vote on 
the proposed action to remedy or prevent the injury 
found by the Commission. Members of the Commis-
sion 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 determina-
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tion is made under subsection (a) with respect to an inves-
tigation, 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 deter-
mination; 
(2) if the determination under subsection (a) is 
affirmative, any findings and recommendations for 
import relief made under subsection (c) and an ex-
planation of the basis for each recommendation; and 
(3) any dissenting or separate views by mem-
bers of the Commission regarding the determination 
referred to in paragraph (1) and any finding or rec-
ommendation 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 con-
fidential) 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 de-
termination under section 312(a) is affirmative, or which 
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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 de-
termines necessary to remedy or prevent the injury found 
by the Commission and to facilitate the efforts of the do-
mestic 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 para-
graph (2), the import relief that the President is au-
thorized to provide under this section with respect to 
imports of an article is as follows: 
(A) The suspension of any further reduc-
tion provided for under Annex 2-B of the 
Agreement in the duty imposed on the article. 
(B) An increase in the rate of duty im-
posed on the article to a level that does not ex-
ceed the lesser of— 
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(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 reduc-
tion provided for under Annex 2-B of the 
Agreement in the duty imposed on the article. 
(B) An increase in the rate of duty im-
posed on the article to a level that does not ex-
ceed the lesser of— 
(i) the column 1 general rate of duty 
imposed under the HTS on like articles for 
the corresponding season immediately pre-
ceding the date the import relief is pro-
vided; or 
(ii) the column 1 general rate of duty 
imposed under the HTS for the cor-
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responding season immediately preceding 
the date on which the Agreement enters 
into force. 
(3) PROGRESSIVE LIBERALIZATION.—If the pe-
riod 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 subpara-
graph (C), the President, after receiving a de-
termination from the Commission under sub-
paragraph (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 ex-
tend the effective period of any import relief 
provided under this section by up to 1 year, if 
the President determines that— 
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(i) the import relief continues to be 
necessary to remedy or prevent serious in-
jury and to facilitate adjustment by the do-
mestic 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 sub-
section (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 seri-
ous injury and whether there is evidence 
that the industry is making a positive ad-
justment 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 
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and shall, within a reasonable time there-
after, hold a public hearing at which the 
Commission shall afford interested parties 
and consumers an opportunity to be 
present, to present evidence, and to re-
spond 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 in-
vestigation and determination under this 
subparagraph not later than 60 days be-
fore the action under subsection (a) is to 
terminate, unless the President specifies a 
different date. 
(C) PERIOD OF IMPORT RELIEF.—Any im-
port relief provided under this section, including 
any extensions thereof, may not, in the aggre-
gate, be in effect for more than 3 years. 
(e) RATE AFTER TERMINATION
OF IMPORT RE-
LIEF.—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. 
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(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 Agree-
ment enters into force. 
(b) EXCEPTION.—If an article for which relief is pro-
vided 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 pro-
vided 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 Ko-
rean 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. 
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