paragraph shall only apply to eligible 
qualified property which is extension 
property. 
‘‘(iii) EXTENSION
PROPERTY.—For 
purposes of this subparagraph, the term 
‘extension property’ means property which 
is eligible qualified property solely by rea-
son of the extension of the application of 
the special allowance under paragraph (1) 
pursuant to the amendments made by sec-
tion 101(a) of the Restore American Jobs 
Act of 2010 (and the application of such 
extension to this paragraph pursuant to 
the amendment made by section 3(b)(1) of 
such Act).’’. 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2009, in taxable years ending after such 
date. 
SEC. 102. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 
FOR START-UP EXPENDITURES. 
(a) IN GENERAL.—Subsection (b) of section 195 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following: 
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‘‘(3) SPECIAL RULE FOR TAXABLE YEARS BE-
GINNING IN 2009, 2010, OR 2011.—In the case of a 
taxable year beginning in 2010, 2011, or 2012, 
paragraph (1)(A)(ii) shall be applied— 
‘‘(A) 
by 
substituting 
‘$20,000’ 
for 
‘$5,000’, and 
‘‘(B) 
by 
substituting 
‘$75,000’ 
for 
‘$50,000’.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
SEC. 103. REMOVAL OF CELLULAR TELEPHONES (OR SIMI-
LAR 
TELECOMMUNICATIONS 
EQUIPMENT) 
FROM LISTED PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
280F(d)(4) of the Internal Revenue Code (defining listed 
property) is amended by inserting ‘‘and’’ at the end of 
clause (iv), by striking clause (v), and by redesignating 
clause (vi) as clause (v). 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
January 1, 2009. 
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SEC. 104. NONRECOURSE SMALL BUSINESS INVESTMENT 
COMPANY LOANS FROM THE SMALL BUSI-
NESS 
ADMINISTRATION 
TREATED 
AS 
AMOUNTS AT RISK. 
(a) IN GENERAL.—Subparagraph (B) of section 
465(b)(6) of the Internal Revenue Code of 1986 is amend-
ed to read as follows: 
‘‘(B) QUALIFIED
NONRECOURSE
FINANC-
ING.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied nonrecourse financing’ means any fi-
nancing— 
‘‘(I) which is qualified real prop-
erty financing or qualified SBIC fi-
nancing, 
‘‘(II) except to the extent pro-
vided in regulations, with respect to 
which no person is personally liable 
for repayment, and 
‘‘(III) which is not convertible 
debt. 
‘‘(ii) QUALIFIED REAL PROPERTY FI-
NANCING.—The term ‘qualified real prop-
erty 
financing’ 
means 
any 
financing 
which— 
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‘‘(I) is borrowed by the taxpayer 
with respect to the activity of holding 
real property, 
‘‘(II) is secured by real property 
used in such activity, and 
‘‘(III) is borrowed by the tax-
payer from a qualified person or rep-
resents a loan from any Federal, 
State, or local government or instru-
mentality thereof, or is guaranteed by 
any Federal, State, or local govern-
ment. 
‘‘(iii) QUALIFIED SBIC FINANCING.— 
The term ‘qualified SBIC financing’ means 
any financing which— 
‘‘(I) is borrowed by a small busi-
ness investment company (within the 
meaning of section 301 of the Small 
Business Investment Act of 1958), 
‘‘(II) is secured by property used 
or held, directly or indirectly, by such 
small business investment company, 
and 
‘‘(III) is borrowed from, or guar-
anteed by, the Small Business Admin-
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istration under the authority of sec-
tion 303(b) of such Act.’’. 
(b) CONFORMING AMENDMENTS.—Subparagraph (A) 
of section 465(b)(6) of such Code is amended— 
(1) by striking ‘‘in the case of an activity of 
holding real property,’’, and 
(2) by striking ‘‘which is secured by real prop-
erty used in such activity’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 105. TEMPORARY EXCLUSION OF 100 PERCENT OF 
GAIN ON CERTAIN SMALL BUSINESS STOCK. 
(a) IN GENERAL.—Subsection (a) of section 1202 of 
the Internal Revenue Code of 1986 (relating partial exclu-
sion for gain from certain small business stock) is amend-
ed by adding at the end the following new paragraph: 
‘‘(4) 100 PERCENT EXCLUSION FOR STOCK AC-
QUIRED
DURING
2010
AND
2011.—In the case of 
qualified small business stock acquired during 2010 
or 2011— 
‘‘(A) paragraph (1) shall be applied by 
substituting ‘100 percent’ for ‘50 percent’, 
‘‘(B) paragraph (2) shall not apply, and 
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‘‘(C) paragraph (7) of section 57(a) shall 
not apply.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (3) of 
section 1202(a) of such Code is amended— 
(1) by striking ‘‘AND 2010’’ in the heading, and 
(2) by striking ‘‘January 1, 2011’’ and insert-
ing ‘‘January 1, 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to stock acquired after December 
31, 2009. 
TITLE II—SMALL BUSINESS PA-
PERWORK MANDATE ELIMI-
NATION 
SEC. 201. REPEAL OF EXPANSION OF INFORMATION RE-
PORTING REQUIREMENTS. 
Section 9006 of the Patient Protection and Afford-
able Care Act, and the amendments made thereby, are 
hereby repealed; and the Internal Revenue Code of 1986 
shall be applied as if such section, and amendments, had 
never been enacted. 
TITLE III—SMALL BUSINESS 
LENDING 
SEC. 301. RESEARCH CREDIT. 
(a) IN GENERAL.—Subparagraph (B) of section 
41(h)(1) of the Internal Revenue Code of 1986 is amended 
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(d) Section 8(f) of the Act (29 U.S.C. 158(f)) is 
amended by striking clause (2) and by redesignating 
clauses (3) and (4) as (2) and (3), respectively. 
SEC. 402. AMENDMENT TO THE RAILWAY LABOR ACT. 
Section 2 of the Railway Labor Act (45 U.S.C. 152) 
is amended by striking paragraph Eleventh. 
TITLE V—ECONOMIC FREEDOM 
SEC. 501. ZERO PERCENT CAPITAL GAINS RATE FOR INDI-
VIDUALS AND CORPORATIONS. 
(a) ZERO PERCENT CAPITAL GAINS RATE FOR INDI-
VIDUALS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
1(h) of the Internal Revenue Code of 1986 is 
amended by striking subparagraph (C), by redesig-
nating subparagraphs (D) and (E) and subpara-
graphs (C) and (D), respectively, and by amending 
subparagraph (B) to read as follows: 
‘‘(B) 0 percent of the adjusted net capital 
gain (or, if less, taxable income);’’. 
(2) ALTERNATIVE MINIMUM TAX.—Paragraph 
(3) of section 55(b) is amended by striking subpara-
graph (C), by redesignating subparagraph (D) as 
subparagraph (C), and by amending subparagraph 
(B) to read as follows: 
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‘‘(B) 0 percent of the adjusted net capital 
gain (or, if less, taxable excess), plus’’. 
(3) REPEAL OF SUNSET OF REDUCTION IN CAP-
ITAL GAINS RATES FOR INDIVIDUALS.—Section 303 
of the Jobs and Growth Tax Relief Reconciliation 
Act of 2003 shall not apply to section 301 of such 
Act. 
(b) ZERO PERCENT CAPITAL GAINS RATE FOR COR-
PORATIONS.— 
(1) IN GENERAL.—Section 1201 of the Internal 
Revenue Code of 1986 is amended by redesignating 
subsection (b) as subsection (c), and by striking sub-
section (a) and inserting the following new sub-
sections: 
‘‘(a) GENERAL RULE.—If for any taxable year a cor-
poration has a net capital gain, then, in lieu of the tax 
imposed by sections 11, 511, 821(a) or (c), and 831(a), 
there is hereby imposed a tax (if such tax is less than 
the tax imposed by such sections) which shall consist of 
the sum of— 
‘‘(1) a tax computed on the taxable income re-
duced by the amount of the net capital gain, at the 
rates and in the manner as if this subsection had 
not been enacted, 
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‘‘(2) 0 percent of the adjusted net capital gain 
(or, if less, taxable income), 
‘‘(3) 25 percent of the excess (if any) of— 
‘‘(A) the unrecaptured section 1250 gain 
(or, if less, the net capital gain (determined 
without regard to subsection (b)(2))), over 
‘‘(B) the excess (if any) of— 
‘‘(i) the sum of the amount on which 
tax is determined under paragraph (1) 
plus the net capital gain, over 
‘‘(ii) taxable income, plus 
‘‘(4) 28 percent of the amount of taxable in-
come in excess of the sum of the amounts on which 
tax is determined under the preceding paragraphs of 
this subsection. 
‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) IN
GENERAL.—The terms ‘adjusted net 
capital gain’ and ‘unrecaptured section 1250 gain’ 
shall have the respective meanings given such terms 
in section 1(h). 
‘‘(2) DIVIDENDS
TAXED
AT
NET
CAPITAL 
GAIN.—Except as otherwise provided in this section, 
the term ‘net capital gain’ has the meaning given 
such term in section 1(h)(11).’’. 
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(2) 
ALTERNATIVE
MINIMUM
TAX.—Section 
55(b) of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(4) MAXIMUM RATE OF TAX ON NET CAPITAL 
GAIN OF CORPORATIONS.—The amount determined 
under paragraph (1)(B)(i) shall not exceed the sum 
of— 
‘‘(A) the amount determined under such 
paragraph computed at the rates and in the 
same manner as if this paragraph had not been 
enacted on the taxable excess reduced by the 
net capital gain, plus 
‘‘(B) the amount determined under section 
1201.’’. 
(3) TECHNICAL AMENDMENTS.— 
(A) Section 1202(a) of such Code is 
amended by striking ‘‘50 percent’’ and inserting 
‘‘100 percent’’. 
(B) Section 1445(e)(1) of such Code is 
amended by striking ‘‘35 percent (or, to the ex-
tent provided in regulations, 15 percent)’’ and 
inserting ‘‘0 percent’’. 
(C) Section 1445(e)(2) of such Code is 
amended by striking ‘‘35 percent’’ and inserting 
‘‘0 percent’’. 
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(D) Section 7518(g)(6)(A) of such Code is 
amended by striking ‘‘15 percent (34 percent in 
the case of a corporation)’’ and inserting ‘‘0 
percent’’. 
(E) Section 607(h)(6)(A) of the Merchant 
Marine Act, 1936 is amended by striking ‘‘15 
percent (34 percent in the case of a corpora-
tion)’’ and inserting ‘‘0 percent’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after Decem-
ber 31, 2009. 
(2) WITHHOLDING.—The amendments made by 
subparagraphs (A) and (B) of subsection (b)(3) 
shall apply to dispositions and distributions after the 
date of the enactment of this Act. 
SEC. 502. REDUCTION IN CORPORATE INCOME TAX RATES. 
(a) IN GENERAL.—Subsection (b) of section 11 of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(b) AMOUNT OF TAX.—The amount of the tax im-
posed by subsection (a) shall be 12.5 percent of taxable 
income.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 55(b)(1)(B)(i) of such Code is 
amended by striking ‘‘20 percent’’ and inserting 
‘‘12.5 percent’’. 
(2) Section 280C(c)(3)(B)(ii)(II) of such Code 
is amended by striking ‘‘maximum rate of tax under 
section 11(b)(1)’’ and inserting ‘‘rate of tax under 
section 11(b)’’. 
(3) Section 832(b)(1) of such Code is amended 
by striking ‘‘rates provided in section 11(b)’’ and in-
serting ‘‘rate provided in section 11(b)’’. 
(4) 
Sections 
244(a)(2)(B), 
247(a)(2)(B), 
527(b)(1), 
835(e), 
852(b)(1), 
857(b)(4)(A), 
860G(c)(1), 904(b)(3)(E)(ii)(II), and 1375(a) of 
such Code is amended by striking ‘‘highest rate of 
tax’’ and inserting ‘‘rate of tax’’. 
(5) Sections 860E(e)(2)(B), 860E(e)(6)(A)(ii), 
860K(d)(2)(A)(ii), 
860K(e)(1)(B)(ii), 
1446(b)(2)(B), and 7874(e)(1)(B) of such Code are 
each amended by striking ‘‘highest rate of tax speci-
fied in section 11(b)(1)’’ and inserting ‘‘rate of tax 
specified in section 11(b)’’. 
(6) Section 904(b)(3)(D)(ii) of such Code is 
amended by striking ‘‘(determined without regard to 
the last sentence of section 11(b)(1))’’. 
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(7) Section 962 of such Code is amended by 
striking subsection (c) and by redesignating sub-
section (d) as subsection (c). 
(8) Section 1201(a) of such Code is amended— 
(A) by striking ‘‘35 percent (determined 
without regard to the last 2 sentences of section 
11(b)(1))’’ and inserting ‘‘15 percent’’, and 
(B) by striking ‘‘35 percent’’ in paragraph 
(2) and inserting ‘‘15 percent’’. 
(9) Section 1561(a) of such Code is amended— 
(A) by striking paragraph (1) and by re-
designating paragraphs (2), (3), and (4) as 
paragraphs (1), (2), and (3), respectively, 
(B) by striking ‘‘The amounts specified in 
paragraph (1), the’’ and inserting ‘‘The’’, 
(C) by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraph (1)’’, 
(D) by striking ‘‘paragraph (3)’’ both 
places it appears and inserting ‘‘paragraph 
(2)’’, 
(E) by striking ‘‘paragraph (4)’’ and in-
serting ‘‘paragraph (3)’’, and 
(F) by striking the fourth sentence. 
(10) Subsection (b) of section 1561 of such 
Code is amended to read as follows: 
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‘‘(b) CERTAIN SHORT TAXABLE YEARS.—If a cor-
poration has a short taxable year which does not include 
a December 31 and is a component member of a controlled 
group of corporations with respect to such taxable year, 
then for purposes of this subtitle, the amount to be used 
in computing the accumulated earnings credit under sec-
tion 535(c)(2) and (3) of such corporation for such taxable 
year shall be the amount specified in subsection (a)(1) di-
vided by the number of corporations which are component 
members of such group on the last day of such taxable 
year. For purposes of the preceding sentence, section 
1563(b) shall be applied as if such last day were sub-
stituted for December 31.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 503. ESTATE TAX REPEAL MADE PERMANENT. 
Section 901 of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 shall not apply to title V of 
such Act. 
SEC. 504. ELECTION TO EXPENSE BUSINESS ASSETS. 
(a) IN GENERAL.—Section 179 of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
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‘‘SEC. 179. ELECTION TO EXPENSE CERTAIN DEPRECIABLE 
BUSINESS ASSETS. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the cost of any property to which this section 
applies as an expense which is not chargeable to capital 
account. Any cost so treated shall be allowed as a deduc-
tion for the taxable year in which such property is placed 
in service. 
‘‘(b) PROPERTY TO WHICH SECTION APPLIES.— 
‘‘(1) IN GENERAL.—This section shall apply to 
property— 
‘‘(A) which is— 
‘‘(i) tangible property (to which sec-
tion 168 applies), or 
‘‘(ii) computer software (as defined in 
section 197(e)(3)(B)) which is described in 
section 197(e)(3)(A)(i), to which section 
167 applies, 
‘‘(B) which is section 1245 property (as 
defined in section 1245(a)(3)) or 1250 property 
(as defined in section 1250(c)), and 
‘‘(C) which is acquired by purchase for use 
in the active conduct of a trade or business. 
Such term shall not include any property described 
in section 50(b) and shall not include air condi-
tioning or heating units. 
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‘‘(2) PURCHASE
DEFINED.—For purposes of 
paragraph (1), the term ‘purchase’ means any acqui-
sition of property, but only if— 
‘‘(A) the property is not acquired from a 
person whose relationship to the person acquir-
ing it would result in the disallowance of losses 
under section 267 or 707(b) (but, in applying 
section 267(b) and (c) for purposes of this sec-
tion, paragraph (4) of section 267(c) shall be 
treated as providing that the family of an indi-
vidual shall include only his spouse, ancestors, 
and lineal descendants), 
‘‘(B) the property is not acquired by one 
component member of a controlled group from 
another component member of the same con-
trolled group, and 
‘‘(C) the basis of the property in the hands 
of the person acquiring it is not determined— 
‘‘(i) in whole or in part by reference 
to the adjusted basis of such property in 
the hands of the person from whom ac-
quired, or 
‘‘(ii) under section 1014(a) (relating 
to property acquired from a decedent). 
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‘‘(3) COST.—For purposes of this section, the 
cost of property does not include so much of the 
basis of such property as is determined by reference 
to the basis of other property held at any time by 
the person acquiring such property. 
‘‘(4) CONTROLLED GROUP DEFINED.—For pur-
poses of this section, the term ‘controlled group’ has 
the meaning assigned to it by section 1563(a), ex-
cept that, for such purposes, the phrase ‘more than 
50 percent’ shall be substituted for the phrase ‘at 
least 80 percent’ each place it appears in section 
1563(a)(1). 
‘‘(5) COORDINATION
WITH
SECTION
38.—No 
credit shall be allowed under section 38 with respect 
to any amount for which a deduction is allowed 
under subsection (a). 
‘‘(6) RECAPTURE
IN
CERTAIN
CASES.—The 
Secretary shall, by regulations, provide for recap-
turing the benefit under any deduction allowable 
under subsection (a) with respect to any property 
which is not used predominantly in a trade or busi-
ness at any time. 
‘‘(c) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall— 
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‘‘(A) specify the items of property to which 
the election applies, and 
‘‘(B) be made on the taxpayer’s return of 
the tax imposed by this chapter for the taxable 
year. 
Such election shall be made in such manner as the 
Secretary may by regulations prescribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section, and any specification con-
tained in any such election, may not be revoked ex-
cept with the consent of the Secretary.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 505. PAYROLL TAX DECREASE FOR 2010. 
(a) EMPLOYEES.—Section 3101 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(d) REDUCTION IN TAX RATE FOR 2010.—In the 
case of wages received during calendar year 2010— 
‘‘(1) subsection (a) shall be applied by sub-
stituting ‘3.1 percent’ for ‘6.2 percent’ in the table 
contained therein, and 
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(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), the amendments made by this section 
shall apply with respect to remuneration paid after 
December 31, 2009. 
(2) 
SELF-EMPLOYMENT.—The 
amendment 
made by subsection (c) shall apply to taxable years 
beginning after December 31, 2009. 
SEC. 506. RESCISSION AND REPEAL IN ARRA. 
(a) RESCISSION.—Of the discretionary appropria-
tions made available in division A of the American Recov-
ery and Reinvestment Act of 2009 (Public Law 111–5), 
all unobligated balances are rescinded. 
(b) REPEAL.—Subtitles B and C of title II and titles 
III through VII of division B of the American Recovery 
and Reinvestment Act of 2009 (Public Law 111–5) are 
repealed. 
SEC. 507. TERMINATION OF TARP AUTHORITY. 
Section 120 of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5230) is amended to read as fol-
lows: 
‘‘SEC. 120. TERMINATION OF AUTHORITY. 
‘‘The authorities provided under sections 101(a), ex-
cluding section 101(a)(3), and 102 shall terminate on the 
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date of the enactment of the Restore American Jobs Act 
of 2010.’’. 
SEC. 508. REQUIRING THE SALE OF STOCK AND WARRANTS 
RECEIVED UNDER TARP. 
Not later than the end of the 1-year period beginning 
on the date of the enactment of this Act, the Secretary 
of the Treasury shall sell all stock and warrants acquired 
by the Secretary under the Troubled Asset Relief Program 
under title I of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5211 et seq.). 
TITLE VI—UNITED STATES-CO-
LOMBIA TRADE PROMOTION 
AGREEMENT 
Subtitle A—General Provisions 
SEC. 601. SHORT TITLE. 
This title may be cited as the ‘‘United States-Colom-
bia Trade Promotion Agreement Implementation Act’’. 
SEC. 602. PURPOSES. 
The purposes of this title are— 
(1) to approve and implement the free trade 
agreement between the United States and Colombia 
entered into under the authority of section 2103(b) 
of the Bipartisan Trade Promotion Authority Act of 
2002 (19 U.S.C. 3803(b)); 
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(2) to strengthen and develop economic rela-
tions between the United States and Colombia for 
their mutual benefit; 
(3) to establish free trade between the United 
States and Colombia through the reduction and 
elimination of barriers to trade in goods and services 
and to investment; and 
(4) to lay the foundation for further coopera-
tion to expand and enhance the benefits of the 
Agreement. 
SEC. 603. DEFINITIONS. 
In this title: 
(1) 
AGREEMENT.—The 
term 
‘‘Agreement’’ 
means the United States-Colombia Trade Promotion 
Agreement approved by Congress under section 
101(a)(1). 
(2) COMMISSION.—The term ‘‘Commission’’ 
means the United States International Trade Com-
mission. 
(3) HTS.—The term ‘‘HTS’’ means the Har-
monized Tariff Schedule of the United States. 
(4) TEXTILE
OR
APPAREL
GOOD.—The term 
‘‘textile or apparel good’’ means a good listed in the 
Annex to the Agreement on Textiles and Clothing 
referred to in section 101(d)(4) of the Uruguay 
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Round Agreements Act (19 U.S.C. 3511(d)(4)), 
other than a good listed in Annex 3–C of the Agree-
ment. 
Subtitle B—Approval of, and Gen-
eral Provisions Relating to, the 
Agreement 
SEC. 611. 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-Colombia Trade Pro-
motion Agreement entered into on November 22, 
2006, with the Government of Colombia, as amend-
ed on June 28, 2007, by the United States and Co-
lombia, and submitted to Congress on April 8, 2008; 
and 
(2) the statement of administrative action pro-
posed to implement the Agreement that was sub-
mitted to Congress on April 8, 2008. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE 
AGREEMENT.—At such time as the President determines 
that Colombia has taken measures necessary to comply 
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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 Colombia providing for the entry into 
force, on or after January 1, 2009, of the Agreement with 
respect to the United States. 
SEC. 612. 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 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 title 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 title. 
(b) RELATIONSHIP
OF
AGREEMENT
TO
STATE 
LAW.— 
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(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 inac-
tion is inconsistent with the Agreement. 
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SEC. 613. IMPLEMENTING ACTIONS IN ANTICIPATION OF 
ENTRY INTO FORCE AND INITIAL REGULA-
TIONS. 
(a) IMPLEMENTING ACTIONS.— 
(1) PROCLAMATION
AUTHORITY.—After the 
date of the 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 title, or amendment made by this title, that 
takes effect on the date on which the Agreement en-
ters 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 title that is not subject 
to the consultation and layover provisions under sec-
tion 614 may not take effect before the 15th day 
after the date on which the text of the proclamation 
is published in the Federal Register. 
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(3) WAIVER OF 15-DAY RESTRICTION.—The 15- 
day restriction contained in paragraph (2) on the 
taking effect of proclaimed actions is waived to the 
extent that the application of such restriction would 
prevent the taking effect on the date the Agreement 
enters into force of any action proclaimed under this 
section. 
(b) INITIAL REGULATIONS.—Initial regulations nec-
essary or appropriate to carry out the actions required by 
or authorized under this title or proposed in the statement 
of 
administrative 
action 
submitted 
under 
section 
611(a)(2) to implement the Agreement shall, to the max-
imum 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. 614. CONSULTATION AND LAYOVER PROVISIONS FOR, 
AND EFFECTIVE DATE OF, PROCLAIMED AC-
TIONS. 
If a provision of this title provides that the implemen-
tation of an action by the President by proclamation is 
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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 Com-
mittee 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 com-
mittees referred to in paragraph (2) regarding the 
proposed action during the period referred to in 
paragraph (3). 
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SEC. 615. 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 21 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 2008 to the Department of Commerce such 
sums as may be necessary for the establishment and oper-
ations of the office established or designated under sub-
section (a) and for the payment of the United States share 
of the expenses of panels established under chapter 21 of 
the Agreement. 
SEC. 616. ARBITRATION OF CLAIMS. 
The United States is authorized to resolve any claim 
against 
the 
United 
States 
covered 
by 
article 
10.16.1(a)(i)(C) or article 10.16.1(b)(i)(C) of the Agree-
ment, pursuant to the Investor-State Dispute Settlement 
procedures set forth in section B of chapter 10 of the 
Agreement. 
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SEC. 617. EFFECTIVE DATES; EFFECT OF TERMINATION. 
(a) EFFECTIVE DATES.—Except as provided in sub-
section (b), this title and the amendments made by this 
title take effect on the date on which the Agreement enters 
into force. 
(b) EXCEPTIONS.—Sections 601 through 603 and 
this subtitle take effect on the date of the enactment of 
this Act. 
(c) TERMINATION
OF
THE AGREEMENT.—On the 
date on which the Agreement terminates, this title (other 
than this subsection) and the amendments made by this 
title shall cease to have effect. 
Subtitle C—Customs Provisions 
SEC. 621. 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 2.3, 2.5, 2.6, 
3.3.13, and Annex 2.3 of the Agreement. 
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(2) EFFECT ON GSP STATUS.—Notwithstanding 
section 502(a)(1) of the Trade Act of 1974 (19 
U.S.C. 2462(a)(1)), the President shall, on the date 
on which the Agreement enters into force, terminate 
the designation of Colombia as a beneficiary devel-
oping country for purposes of title V of the Trade 
Act of 1974 (19 U.S.C. 2461 et seq.). 
(b) OTHER TARIFF MODIFICATIONS.—Subject to the 
consultation and layover provisions of section 614, the 
President may proclaim— 
(1) such modifications or continuation of any 
duty, 
(2) such modifications as the United States 
may agree to with Colombia regarding the staging of 
any duty treatment set forth in Annex 2.3 of the 
Agreement, 
(3) such continuation of duty-free or excise 
treatment, or 
(4) such additional duties, 
as the President determines to be necessary or appropriate 
to maintain the general level of reciprocal and mutually 
advantageous concessions with respect to Colombia pro-
vided for by the Agreement. 
(c) CONVERSION TO AD VALOREM RATES.—For pur-
poses of subsections (a) and (b), with respect to any good 
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for which the base rate in the Schedule of the United 
States to Annex 2.3 of the Agreement is a specific or com-
pound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President deter-
mines to be equivalent to the base rate. 
(d) TARIFF RATE QUOTAS.—In implementing the 
tariff rate quotas set forth in Appendix I to the Schedule 
of the United States to Annex 2.3 of the Agreement, the 
President shall take such action as may be necessary to 
ensure that imports of agricultural goods do not disrupt 
the orderly marketing of commodities in the United 
States. 
SEC. 622. ADDITIONAL DUTIES ON CERTAIN AGRICUL-
TURAL GOODS. 
(a) DEFINITIONS.—In this section: 
(1) APPLICABLE NTR (MFN) RATE OF DUTY.— 
The term ‘‘applicable NTR (MFN) rate of duty’’ 
means, with respect to a safeguard good, a rate of 
duty equal to the lowest of— 
(A) the base rate in the Schedule of the 
United States to Annex 2.3 of the Agreement; 
(B) the column 1 general rate of duty that 
would, on the day before the date on which the 
Agreement enters into force, apply to a good 
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classifiable in the same 8-digit subheading of 
the HTS as the safeguard good; or 
(C) the column 1 general rate of duty that 
would, at the time the additional duty is im-
posed under subsection (b), apply to a good 
classifiable in the same 8-digit subheading of 
the HTS as the safeguard good. 
(2) SCHEDULE
RATE
OF
DUTY.—The term 
‘‘schedule rate of duty’’ means, with respect to a 
safeguard good, the rate of duty for that good that 
is set forth in the Schedule of the United States to 
Annex 2.3 of the Agreement. 
(3) SAFEGUARD GOOD.—The term ‘‘safeguard 
good’’ means a good— 
(A) that is included in the Schedule of the 
United States to Annex 2.18 of the Agreement; 
(B) that qualifies as an originating good 
under section 623, except that operations per-
formed in or material obtained from the United 
States shall be considered as if the operations 
were performed in, and the material was ob-
tained from, a country that is not a party to 
the Agreement; and 
(C) for which a claim for preferential tariff 
treatment under the Agreement has been made. 
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(b) ADDITIONAL DUTIES ON SAFEGUARD GOODS.— 
(1) IN GENERAL.—In addition to any duty pro-
claimed under subsection (a) or (b) of section 621, 
the Secretary of the Treasury shall assess a duty, in 
the amount determined under paragraph (2), on a 
safeguard good imported into the United States in 
a calendar year if the Secretary determines that, 
prior to such importation, the total volume of that 
safeguard good that is imported into the United 
States in that calendar year exceeds 140 percent of 
the volume that is provided for that safeguard good 
in the corresponding year in the applicable table 
contained in Appendix I of the General Notes to the 
Schedule of the United States to Annex 2.3 of the 
Agreement. For purposes of this subsection, year 1 
in that table corresponds to the calendar year in 
which the Agreement enters into force. 
(2) CALCULATION OF ADDITIONAL DUTY.—The 
additional duty on a safeguard good under this sub-
section shall be— 
(A) in years 1 through 4, an amount equal 
to 100 percent of the excess of the applicable 
NTR (MFN) rate of duty over the schedule 
rate of duty; 
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(B) in years 5 through 7, an amount equal 
to 75 percent of the excess of the applicable 
NTR (MFN) rate of duty over the schedule 
rate of duty; and 
(C) in years 8 through 9, an amount equal 
to 50 percent of the excess of the applicable 
NTR (MFN) rate of duty over the schedule 
rate of duty. 
(3) NOTICE.—Not later than 60 days after the 
Secretary of the Treasury first assesses an addi-
tional duty in a calendar year on a good under this 
subsection, the Secretary shall notify the Govern-
ment of Colombia in writing of such action and shall 
provide to that Government data supporting the as-
sessment of the additional duty. 
(c) EXCEPTIONS.—No additional duty shall be as-
sessed on a good under subsection (b) if, at the time of 
entry, the good is subject to import relief under— 
(1) chapter 1 of subtitle D of this title; or 
(2) chapter 1 of title II of the Trade Act of 
1974 (19 U.S.C. 2251 et seq.). 
(d) TERMINATION.—The assessment of an additional 
duty on a good under subsection (b) shall cease to apply 
to that good on the date on which duty-free treatment 
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must be provided to that good under the Schedule of the 
United States to Annex 2.3 of the Agreement. 
SEC. 623. 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 re-
ferred to in this section shall be recorded and main-
tained in accordance with the generally accepted ac-
counting principles applicable in the territory of the 
country in which the good is produced (whether Co-
lombia or the United States). 
(b) ORIGINATING GOODS.—For purposes of this title 
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 pro-
duced entirely in the territory of Colombia, the 
United States, or both; 
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(2) the good— 
(A) is produced entirely in the territory of 
Colombia, the United States, or both, and— 
(i) each of the nonoriginating mate-
rials used in the production of the good 
undergoes an applicable change in tariff 
classification specified in Annex 3–A or 
Annex 4.1 of the Agreement; or 
(ii) the good otherwise satisfies any 
applicable regional value-content or other 
requirements specified in Annex 3–A or 
Annex 4.1 of the Agreement; and 
(B) satisfies all other applicable require-
ments of this section; or 
(3) the good is produced entirely in the terri-
tory of Colombia, the United States, or both, exclu-
sively from materials described in paragraph (1) or 
(2). 
(c) REGIONAL VALUE-CONTENT.— 
(1) IN GENERAL.—For purposes of subsection 
(b)(2), the regional value-content of a good referred 
to in Annex 4.1 of the Agreement, except for goods 
to which paragraph (4) applies, shall be calculated 
by the importer, exporter, or producer of the good, 
on the basis of the build-down method described in 
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paragraph (2) or the build-up method described in 
paragraph (3). 
(2) BUILD-DOWN METHOD.— 
(A) IN GENERAL.—The regional value-con-
tent of a good may be calculated on the basis 
of the following build-down method: 
AV¥VNM 
RVC = ————— × 100. 
AV 
(B) DEFINITIONS.—In subparagraph (A): 
(i) AV.—The term ‘‘AV’’ means the 
adjusted value of the good. 
(ii) RVC.—The term ‘‘RVC’’ means 
the regional value-content of the good, ex-
pressed as a percentage. 
(iii) VNM.—The term ‘‘VNM’’ means 
the value of nonoriginating materials that 
are acquired and used by the producer in 
the production of the good, but does not 
include the value of a material that is self- 
produced. 
(3) BUILD-UP METHOD.— 
(A) IN GENERAL.—The regional value-con-
tent of a good may be calculated on the basis 
of the following build-up method: 
VOM 
RVC = ————— × 100. 
AV 
(B) DEFINITIONS.—In subparagraph (A): 
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(i) AV.—The term ‘‘AV’’ means the 
adjusted value of the good. 
(ii) RVC.—The term ‘‘RVC’’ means 
the regional value-content of the good, ex-
pressed as a percentage. 
(iii) VOM.—The term ‘‘VOM’’ means 
the value of originating materials that are 
acquired or self-produced, and used by the 
producer in the production of the good. 
(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE 
GOODS.— 
(A) IN GENERAL.—For purposes of sub-
section (b)(2), the regional value-content of an 
automotive good referred to in Annex 4.1 of the 
Agreement shall be calculated by the importer, 
exporter, or producer of the good, on the basis 
of the following net cost method: 
NC¥VNM 
RVC = ————— × 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. 
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(ii) RVC.—The term ‘‘RVC’’ means 
the regional value-content of the auto-
motive good, expressed as a percentage. 
(iii) NC.—The term ‘‘NC’’ means the 
net cost of the automotive good. 
(iv) VNM.—The term ‘‘VNM’’ means 
the value of nonoriginating materials that 
are acquired and used by the producer in 
the production of the automotive good, but 
does not include the value of a material 
that is self-produced. 
(C) MOTOR VEHICLES.— 
(i) BASIS
OF
CALCULATION.—For 
purposes of determining the regional value- 
content under subparagraph (A) for an 
automotive good that is a motor vehicle 
provided for in any of headings 8701 
through 8705, an importer, exporter, or 
producer may average the amounts cal-
culated under the formula contained in 
subparagraph (A), over the producer’s fis-
cal year— 
(I) with respect to all motor vehi-
cles in any one of the categories de-
scribed in clause (ii); or 
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(II) with respect to all motor ve-
hicles in any such category that are 
exported to the territory of the United 
States or Colombia. 
(ii) CATEGORIES.—A category is de-
scribed 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 Colom-
bia or the United States, as the good 
described in clause (i) for which re-
gional value-content is being cal-
culated; 
(II) is the same class of motor 
vehicles, and is produced in the same 
plant in the territory of Colombia or 
the United States, as the good de-
scribed in clause (i) for which regional 
value-content is being calculated; or 
(III) is the same model line of 
motor vehicles produced in the terri-
tory of Colombia or the United States 
as the good described in clause (i) for 
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which regional value-content is being 
calculated. 
(D) OTHER
AUTOMOTIVE
GOODS.—For 
purposes of determining the regional value-con-
tent 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 formula contained in subpara-
graph (A) over— 
(I) the fiscal year of the motor 
vehicle producer to whom the auto-
motive goods are sold, 
(II) any quarter or month, or 
(III) the fiscal year of the pro-
ducer of such goods, 
if the goods were produced during the fis-
cal 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 
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(iii) make a separate determination 
under clause (i) or (ii) for such goods that 
are exported to the territory of Colombia 
or the United States. 
(E) CALCULATING
NET
COST.—The im-
porter, exporter, or producer of an automotive 
good shall, consistent with the provisions re-
garding allocation of costs provided for in gen-
erally accepted accounting principles, determine 
the net cost of the automotive good under sub-
paragraph (B) by— 
(i) calculating the total cost incurred 
with respect to all goods produced by the 
producer of the automotive good, sub-
tracting any sales promotion, marketing, 
and after-sales service costs, royalties, 
shipping and packing costs, and nonallow-
able interest costs that are included in the 
total cost of all such goods, and then rea-
sonably 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 sub-
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tracting any sales promotion, marketing, 
and after-sales service costs, royalties, 
shipping and packing costs, and nonallow-
able 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 in-
clude 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 calcu-
lating 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 im-
ported by the producer of the good, the ad-
justed value of the material; 
(B) in the case of a material acquired in 
the territory in which the good is produced, the 
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value, determined in accordance with Articles 1 
through 8, Article 15, and the corresponding in-
terpretive notes, of the Agreement on Imple-
mentation of Article VII of the General Agree-
ment on Tariffs and Trade 1994 referred to in 
section 101(d)(8) of the Uruguay Round Agree-
ments 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 pro-
duction 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 fol-
lowing expenses, if not included in the value of 
an originating material calculated under para-
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graph (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 be-
tween the territory of Colombia, the United 
States, or both, to the location of the pro-
ducer. 
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of Colombia, 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 re-
sulting 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 para-
graph (1), may be deducted from the value of 
the nonoriginating material: 
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(i) The costs of freight, insurance, 
packing, and all other costs incurred in 
transporting the material within or be-
tween the territory of Colombia, the United 
States, or both, to the location of the pro-
ducer. 
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of Colombia, 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 re-
sulting 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 nonorigi-
nating material in the territory of Colom-
bia, the United States, or both. 
(e) ACCUMULATION.— 
(1) ORIGINATING MATERIALS USED IN PRODUC-
TION
OF
GOODS
OF
ANOTHER
COUNTRY.—Origi-
nating materials from the territory of Colombia or 
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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 Colombia, the United 
States, or both, by 1 or more producers, is an origi-
nating good if the good satisfies the requirements of 
subsection (b) and all other applicable requirements 
of this section. 
(f) DE MINIMIS AMOUNTS OF NONORIGINATING MA-
TERIALS.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), a good that does not undergo a 
change in tariff classification pursuant to Annex 4.1 
of the Agreement is an originating good if— 
(A)(i) the value of all nonoriginating mate-
rials that— 
(I) are used in the production of the 
good, and 
(II) do not undergo the applicable 
change in tariff classification (set forth in 
Annex 4.1 of the Agreement), 
does not exceed 10 percent of the adjusted 
value of the good; 
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(ii) the good meets all other applicable re-
quirements of this section; and 
(iii) the value of such nonoriginating mate-
rials is included in the value of nonoriginating 
materials for any applicable regional value-con-
tent requirement for the good; or 
(B) the good meets the requirements set 
forth in paragraph 2 of Annex 4.6 of the Agree-
ment. 
(2) EXCEPTIONS.—Paragraph (1) does not 
apply to the following: 
(A) A nonoriginating material provided for 
in chapter 4, or a nonoriginating dairy prepara-
tion containing over 10 percent by weight of 
milk solids provided for in subheading 1901.90 
or 2106.90, that is used in the production of a 
good provided for in chapter 4. 
(B) A nonoriginating material provided for 
in chapter 4, or a nonoriginating dairy prepara-
tion 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 fol-
lowing goods: 
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(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 sub-
heading 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 pro-
vided for in subheading 2202.90. 
(vi) Animal feeds containing over 10 
percent by weight of milk solids provided 
for in subheading 2309.90. 
(C) A nonoriginating material provided for 
in heading 0805, or any of subheadings 
2009.11 through 2009.39, that is used in the 
production of a good provided for in any of sub-
headings 2009.11 through 2009.39, or in fruit 
or vegetable juice of any single fruit or vege-
table, fortified with minerals or vitamins, con-
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centrated or unconcentrated, provided for in 
subheading 2106.90 or 2202.90. 
(D) A nonoriginating material provided for 
in heading 0901 or 2101 that is used in the 
production of a good provided for in heading 
0901 or 2101. 
(E) A nonoriginating material provided for 
in chapter 15 that is used in the production of 
a good provided for in any of headings 1501 
through 1508, or any of headings 1511 through 
1515. 
(F) 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. 
(G) A nonoriginating material provided for 
in chapter 17 that is used in the production of 
a good provided for in subheading 1806.10. 
(H) Except as provided in subparagraphs 
(A) through (G) and Annex 4.1 of the Agree-
ment, a nonoriginating material used in the 
production of a good provided for in any of 
chapters 1 through 24, unless the nonorigi-
nating material is provided for in a different 
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subheading than the good for which origin is 
being determined under this section. 
(I) A nonoriginating material that is a tex-
tile or apparel good. 
(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 tar-
iff classification of the good do not undergo an 
applicable change in tariff classification, set 
forth in Annex 3–A of the Agreement, shall be 
considered to be an originating good if— 
(i) the total weight of all such fibers 
or yarns in that component is not more 
than 10 percent of the total weight of that 
component; or 
(ii) the yarns are those described in 
section 204(b)(3)(B)(vi)(IV) of the Andean 
Trade 
Preference 
Act 
(19 
U.S.C. 
3203(b)(3)(B)(vi)(IV)) (as in effect on the 
date of the enactment of this Act). 
(B) 
CERTAIN
TEXTILE
OR
APPAREL 
GOODS.—A textile or apparel good containing 
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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 in 
the territory of Colombia, the United States, or 
both. 
(C) YARN, FABRIC, OR FIBER.—For pur-
poses of this paragraph, in the case of a good 
that is a yarn, fabric, or fiber, the term ‘‘com-
ponent of the good that determines the tariff 
classification of the good’’ means all of the fi-
bers in the good. 
(g) FUNGIBLE GOODS AND MATERIALS.— 
(1) IN GENERAL.— 
(A) CLAIM
FOR
PREFERENTIAL
TARIFF 
TREATMENT.—A person claiming that a fun-
gible good or fungible material is an originating 
good may base the claim either on the physical 
segregation of the fungible good or fungible ma-
terial 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 manage-
ment method’’ means— 
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(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 Colombia 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 meth-
od 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 
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(B) be disregarded in determining whether 
all the nonoriginating materials used in the pro-
duction of the good undergo the applicable 
change in tariff classification set forth in Annex 
4.1 of the Agreement. 
(2) CONDITIONS.—Paragraph (1) shall apply 
only if— 
(A) the accessories, spare parts, or tools 
are classified with and not invoiced separately 
from the good, regardless of whether such ac-
cessories, spare parts, or tools are specified or 
are separately identified in the invoice for the 
good; and 
(B) the quantities and value of the acces-
sories, 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 nonorigi-
nating 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 
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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 3–A or Annex 4.1 of the Agreement, 
and, if the good is subject to a regional value-content re-
quirement, the value of such packaging materials and con-
tainers shall be taken into account as originating or non-
originating 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 ship-
ment shall be disregarded in determining whether a good 
is an originating good. 
(k) INDIRECT MATERIALS.—An indirect material 
shall be treated as an originating material without regard 
to where it is produced. 
(l) TRANSIT AND TRANSHIPMENT.—A good that has 
undergone production necessary to qualify as an origi-
nating good under subsection (b) shall not be considered 
to be an originating good if, subsequent to that produc-
tion, the good— 
(1) undergoes further production or any other 
operation outside the territory of Colombia or the 
United States, other than unloading, reloading, or 
any other operation necessary to preserve the good 
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in good condition or to transport the good to the ter-
ritory of Colombia or the United States; or 
(2) does not remain under the control of cus-
toms authorities in the territory of a country other 
than Colombia or the United States. 
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN 
SETS.—Notwithstanding the rules set forth in Annex 3– 
A and Annex 4.1 of the Agreement, goods classifiable as 
goods put up in sets for retail sale as provided for in Gen-
eral Rule of Interpretation 3 of the HTS shall not be con-
sidered to be originating goods unless— 
(1) each of the goods in the set is an origi-
nating 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 a good, other than a tex-
tile or apparel good, 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 cor-
responding interpretive notes, of the Agreement on 
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Implementation of Article VII of the General Agree-
ment on Tariffs and Trade 1994 referred to in sec-
tion 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 mer-
chandise 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 fol-
lowing categories of motor vehicles: 
(A) Motor vehicles provided for in sub-
heading 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 sub-
heading 
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. 
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(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’’ means the recognized consensus or sub-
stantial authoritative support in the territory of Co-
lombia or the United States, as the case may be, 
with respect to the recording of revenues, expenses, 
costs, assets, and liabilities, the disclosure of infor-
mation, and the preparation of financial statements. 
The principles may encompass broad guidelines of 
general application as well as detailed standards, 
practices, and procedures. 
(5) GOOD WHOLLY OBTAINED OR PRODUCED 
ENTIRELY IN THE TERRITORY OF COLOMBIA, THE 
UNITED STATES, OR BOTH.—The term ‘‘good wholly 
obtained or produced entirely in the territory of Co-
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lombia, the United States, or both’’ means any of 
the following: 
(A) Plants and plant products harvested or 
gathered in the territory of Colombia, the 
United States, or both. 
(B) Live animals born and raised in the 
territory of Colombia, the United States, or 
both. 
(C) Goods obtained in the territory of Co-
lombia, the United States, or both from live 
animals. 
(D) Goods obtained from hunting, trap-
ping, fishing, or aquaculture conducted in the 
territory of Colombia, 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 Colombia, the United States, or both. 
(F) Fish, shellfish, and other marine life 
taken from the sea, seabed, or subsoil outside 
the territory of Colombia or the United States 
by— 
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(i) a vessel that is registered or re-
corded with Colombia and flying the flag of 
Colombia; 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 Co-
lombia and flies the flag of Colombia; or 
(ii) is a vessel that is documented 
under the laws of the United States. 
(H)(i) Goods taken by Colombia or a per-
son of Colombia from the seabed or subsoil out-
side the territorial waters of Colombia, if Co-
lombia has rights to exploit such seabed or sub-
soil. 
(ii) Goods taken by the United States or a 
person of the United States from the seabed or 
subsoil outside the territorial waters of the 
United States, if the United States has rights 
to exploit such seabed or subsoil. 
(I) Goods taken from outer space, if the 
goods are obtained by Colombia or the United 
States or a person of Colombia or the United 
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States and not processed in the territory of a 
country other than Colombia or the United 
States. 
(J) Waste and scrap derived from— 
(i) manufacturing or processing oper-
ations in the territory of Colombia, the 
United States, or both; or 
(ii) used goods collected in the terri-
tory of Colombia, the United States, or 
both, if such goods are fit only for the re-
covery of raw materials. 
(K) Recovered goods derived in the terri-
tory of Colombia, the United States, or both, 
from used goods, and used in the territory of 
Colombia, the United States, or both, in the 
production of remanufactured goods. 
(L) Goods, at any stage of production, pro-
duced in the territory of Colombia, the United 
States, or both, exclusively from— 
(i) goods referred to in any of sub-
paragraphs (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 re-
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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 nonallowable interest costs that 
are included in the total cost. 
(12) NONALLOWABLE INTEREST COSTS.—The 
term ‘‘nonallowable interest costs’’ means interest 
costs incurred by a producer that exceed 700 basis 
points above the applicable official interest rate for 
comparable maturities of the country in which the 
producer is located. 
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(13) NONORIGINATING
GOOD
OR
NONORIGI-
NATING
MATERIAL.—The terms ‘‘nonoriginating 
good’’ and ‘‘nonoriginating material’’ mean a good 
or material, as the case may be, that does not qual-
ify 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 is 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 Colombia or the United States. 
(17) PRODUCTION.—The term ‘‘production’’ 
means growing, mining, harvesting, fishing, raising, 
trapping, hunting, manufacturing, processing, as-
sembling, or disassembling a good. 
(18) REASONABLY ALLOCATE.—The term ‘‘rea-
sonably allocate’’ means to apportion in a manner 
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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 an industrial good as-
sembled in the territory of Colombia or the United 
States, or both, that is classified under chapter 84, 
85, 87, or 90 or heading 9402, other than a good 
classified under heading 8418 or 8516, and that— 
(A) is entirely or partially comprised of 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 Colombia, 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 3–A 
and Annex 4.1 of the Agreement; and 
(B) any additional subordinate category 
that is necessary to carry out this title con-
sistent with the Agreement. 
(2) FABRICS AND YARNS NOT AVAILABLE IN 
COMMERCIAL
QUANTITIES
IN
THE
UNITED 
STATES.—The President is authorized to proclaim 
that a fabric or yarn is added to the list in Annex 
3–B of the Agreement in an unrestricted quantity, 
as provided in article 3.3.5(e) of the Agreement. 
(3) MODIFICATIONS.— 
(A) IN GENERAL.—Subject to the consulta-
tion and layover provisions of section 614, the 
President may proclaim modifications to the 
provisions proclaimed under the authority of 
paragraph (1)(A), other than provisions of 
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chapters 50 through 63 (as included in Annex 
3–A of the Agreement). 
(B) ADDITIONAL
PROCLAMATIONS.—Not-
withstanding subparagraph (A), and subject to 
the consultation and layover provisions of sec-
tion 614, the President may proclaim before the 
end of the 1-year period beginning on the date 
of the enactment of this Act, modifications to 
correct any typographical, clerical, or other non-
substantive technical error regarding the provi-
sions of chapters 50 through 63 (as included in 
Annex 3–A of the Agreement). 
(4) FABRICS, YARNS, OR FIBERS NOT AVAIL-
ABLE
IN
COMMERCIAL
QUANTITIES
IN
COLOMBIA 
AND THE UNITED STATES.— 
(A) IN GENERAL.—Notwithstanding para-
graph (3)(A), the list of fabrics, yarns, and fi-
bers set forth in Annex 3–B of the Agreement 
may be modified as provided for in this para-
graph. 
(B) DEFINITIONS.—In this paragraph: 
(i) The term ‘‘interested entity’’ 
means the Government of Colombia, a po-
tential or actual purchaser of a textile or 
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apparel good, or a potential or actual sup-
plier of a textile or apparel good. 
(ii) All references to ‘‘day’’ and 
‘‘days’’ exclude Saturdays, Sundays, and 
legal holidays observed by the Government 
of the United States. 
(C) REQUESTS TO ADD FABRICS, YARNS, 
OR FIBERS.—(i) An interested entity may re-
quest the President to determine that a fabric, 
yarn, or fiber is not available in commercial 
quantities in a timely manner in Colombia and 
the United States and to add that fabric, yarn, 
or fiber to the list in Annex 3–B of the Agree-
ment in a restricted or unrestricted quantity. 
(ii) After receiving a request under clause 
(i), the President may determine whether— 
(I) the fabric, yarn, or fiber is avail-
able in commercial quantities in a timely 
manner in Colombia or the United States; 
or 
(II) any interested entity objects to 
the request. 
(iii) The President may, within the time 
periods specified in clause (iv), proclaim that 
the fabric, yarn, or fiber that is the subject of 
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the request is added to the list in Annex 3–B 
of the Agreement in an unrestricted quantity, 
or in any restricted quantity that the President 
may establish, if the President has determined 
under clause (ii) that— 
(I) the fabric, yarn, or fiber is not 
available in commercial quantities in a 
timely manner in Colombia and the United 
States; or 
(II) no interested entity has objected 
to the request. 
(iv) The time periods within which the 
President may issue a proclamation under 
clause (iii) are— 
(I) not later than 30 days after the 
date on which a request is submitted under 
clause (i); or 
(II) not later than 44 days after the 
request is submitted, if the President de-
termines, within 30 days after the date on 
which the request is submitted, that the 
President does not have sufficient informa-
tion to make a determination under clause 
(ii). 
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(v) Notwithstanding section 613(a)(2), a 
proclamation made under clause (iii) shall take 
effect on the date on which the text of the proc-
lamation is published in the Federal Register. 
(vi) Not later than 6 months after pro-
claiming under clause (iii) that a fabric, yarn, 
or fiber is added to the list in Annex 3–B of the 
Agreement in a restricted quantity, the Presi-
dent may eliminate the restriction if the Presi-
dent determines that the fabric, yarn, or fiber 
is not available in commercial quantities in a 
timely manner in Colombia and the United 
States. 
(D) DEEMED APPROVAL OF REQUEST.—If, 
after an interested entity submits a request 
under subparagraph (C)(i), the President does 
not, within the applicable time period specified 
in subparagraph (C)(iv), make a determination 
under subparagraph (C)(ii) regarding the re-
quest, the fabric, yarn, or fiber that is the sub-
ject of the request shall be considered to be 
added, in an unrestricted quantity, to the list in 
Annex 3–B of the Agreement beginning— 
(i) 45 days after the date on which 
the request was submitted; or 
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(ii) 60 days after the date on which 
the request was submitted, if the President 
made a determination under subparagraph 
(C)(iv)(II). 
(E) REQUESTS TO RESTRICT OR REMOVE 
FABRICS, YARNS, OR
FIBERS.—(i) Subject to 
clause (ii), an interested entity may request the 
President to restrict the quantity of, or remove 
from the list in Annex 3–B of the Agreement, 
any fabric, yarn, or fiber— 
(I) that has been added to that list in 
an unrestricted quantity pursuant to para-
graph (2) or subparagraph (C)(iii) or (D) 
of this paragraph; or 
(II) with respect to which the Presi-
dent has eliminated a restriction under 
subparagraph (C)(vi). 
(ii) An interested entity may submit a re-
quest under clause (i) at any time beginning 6 
months after the date of the action described in 
subclause (I) or (II) of that clause. 
(iii) Not later than 30 days after the date 
on which a request under clause (i) is sub-
mitted, the President may proclaim an action 
provided for under clause (i) if the President 
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determines that the fabric, yarn, or fiber that 
is the subject of the request is available in com-
mercial quantities in a timely manner in Colom-
bia or the United States. 
(iv) A proclamation under clause (iii) shall 
take effect no earlier than the date that is 6 
months after the date on which the text of the 
proclamation is published in the Federal Reg-
ister. 
(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 
makes a determination under subpara-
graph (C) (ii) or (vi) or (E)(iii). 
SEC. 624. CUSTOMS USER FEES. 
(a) IN GENERAL.—Section 13031(b) of the Consoli-
dated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(b)) is amended by adding after paragraph 
(18), the following: 
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‘‘(19) No fee may be charged under subsection 
(a)(9) or (10) with respect to goods that qualify as 
originating goods under section 203 of the United 
States-Colombia Trade Promotion Agreement Imple-
mentation Act. Any service for which an exemption 
from such fee is provided by reason of this para-
graph may not be funded with money contained in 
the Customs User Fee Account.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2013. 
(c) REFUND.—Any fee described in paragraph (19) 
of section 13031(b) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(b)) (as added 
by subsection (a)) that is paid on or after the date that 
the United States-Colombia Trade Promotion Agreement 
enters into force and before October 1, 2013, shall be re-
funded with interest if application for such refund is made 
on or after October 1, 2013, and before July 1, 2014. 
SEC. 625. 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)— 
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(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-COLOMBIA TRADE PRO-
MOTION
AGREEMENT.—An importer shall not be 
subject to penalties under subsection (a) for making 
an incorrect claim that a good qualifies as an origi-
nating good under section 623 of the United States- 
Colombia Trade Promotion Agreement Implementa-
tion Act if the importer, in accordance with regula-
tions issued by the Secretary of the Treasury, 
promptly and voluntarily makes a corrected declara-
tion 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-COLOMBIA TRADE PROMOTION AGREE-
MENT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
it is unlawful for any person to certify falsely, by 
fraud, gross negligence, or negligence, in a CTPA 
certification of origin (as defined in section 
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508(i)(1)(B) 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 623 
of the United States-Colombia Trade Promotion 
Agreement Implementation Act. The procedures and 
penalties of this section that apply to a violation of 
subsection (a) also apply to a violation of this sub-
section. 
‘‘(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 CTPA 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 CTPA 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-
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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: 
‘‘(j) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT UNDER THE UNITED STATES-COLOMBIA TRADE 
PROMOTION AGREEMENT.—If U.S. Customs and Border 
Protection or U.S. Immigration and Customs Enforce-
ment of the Department of Homeland Security finds indi-
cations 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 sec-
tion 623 of the United States-Colombia Trade Promotion 
Agreement Implementation Act, U.S. Customs and Border 
Protection, in accordance with regulations issued by the 
Secretary of the Treasury, may suspend preferential tariff 
treatment under the United States-Colombia Trade Pro-
motion Agreement to entries of identical goods covered by 
subsequent representations by that importer, exporter, or 
producer until U.S. Customs and Border Protection deter-
mines that representations of that person are in con-
formity with such section 623.’’. 
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SEC. 626. RELIQUIDATION OF ENTRIES. 
Subsection (d) of section 520 of the Tariff Act of 
1930 (19 U.S.C. 1520(d)) is amended in the matter pre-
ceding paragraph (1)— 
(1) by striking ‘‘or’’; and 
(2) by striking ‘‘for which’’ and inserting ‘‘, or 
section 623 of the United States-Colombia Trade 
Promotion Agreement Implementation Act for 
which’’. 
SEC. 627. 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-COLOMBIA TRADE 
PROMOTION 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— 
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‘‘(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) CTPA CERTIFICATION OF ORIGIN.— 
The term ‘CTPA certification of origin’ means 
the certification established under article 4.15 
of the United States-Colombia Trade Promotion 
Agreement that a good qualifies as an origi-
nating good under such Agreement. 
‘‘(2) EXPORTS TO COLOMBIA.—Any person who 
completes and issues a CTPA 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 CTPA certification of origin shall keep the 
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