II 
Calendar No. 225
108TH CONGRESS 
1ST SESSION H. R. 2738
IN THE SENATE OF THE UNITED STATES 
JULY 24 (legislative day, JULY 21), 2003
Received; read twice and placed on the calendar 
AN ACT 
To implement the United States-Chile Free Trade 
Agreement.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘United States-Chile Free Trade Agreement Implementa-
tion Act’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING 
TO, THE AGREEMENT 
Sec. 101. Approval and entry into force of the Agreement. 
Sec. 102. Relationship of the agreement to United States and State law. 
Sec. 103. Consultation and layover provisions for, and effective date of, pro-
claimed actions. 
Sec. 104. Implementing actions in anticipation of entry into force and initial 
regulations. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Arbitration of claims. 
Sec. 107. Effective dates; effect of termination. 
TITLE II—CUSTOMS PROVISIONS 
Sec. 201. Tariff modifications. 
Sec. 202. Rules of origin. 
Sec. 203. Drawback. 
Sec. 204. Customs user fees. 
Sec. 205. Disclosure of incorrect information; denial of preferential tariff treat-
ment; false certificates of origin. 
Sec. 206. Reliquidation of entries. 
Sec. 207. Recordkeeping requirements. 
Sec. 208. Enforcement of textile and apparel rules of origin. 
Sec. 209. Conforming amendments. 
Sec. 210. Regulations. 
TITLE III—RELIEF FROM IMPORTS 
Sec. 301. Definitions. 
Subtitle A—Relief From Imports Benefiting From the Agreement 
Sec. 311. Commencing of action for relief. 
Sec. 312. Commission action on petition. 
Sec. 313. Provision of relief. 
Sec. 314. Termination of relief authority. 
Sec. 315. Compensation authority. 
Sec. 316. Confidential business information. 
Subtitle B—Textile and Apparel Safeguard Measures 
Sec. 321. Commencement of action for relief.
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Sec. 322. Determination and provision of relief. 
Sec. 323. Period of relief. 
Sec. 324. Articles exempt from relief. 
Sec. 325. Rate after termination of import relief. 
Sec. 326. Termination of relief authority. 
Sec. 327. Compensation authority. 
Sec. 328. Business confidential information. 
TITLE IV—TEMPORARY ENTRY OF BUSINESS PERSONS 
Sec. 401. Nonimmigrant traders and investors. 
Sec. 402. Nonimmigrant professionals; labor attestation. 
Sec. 403. Labor disputes. 
Sec. 404. Conforming amendments.
SEC. 2. PURPOSES. 
The purposes of this Act are—
(1) to approve and implement the Free Trade 
Agreement between the United States and the Re-
public of Chile entered into under the authority of 
section 2103(b) of the Bipartisan Trade Promotion 
Authority Act of 2002; 
(2) to strengthen and develop economic rela-
tions between the United States and Chile for their 
mutual benefit; 
(3) to establish free trade between the two na-
tions through the reduction and elimination of bar-
riers to trade in goods and services and to invest-
ment; and 
(4) to lay the foundation for further coopera-
tion to expand and enhance the benefits of such 
Agreement. 
SEC. 3. DEFINITIONS. 
In this Act:
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(1) 
AGREEMENT.—The 
term 
‘‘Agreement’’ 
means the United States-Chile Free Trade Agree-
ment approved by the Congress under section 
101(a)(1). 
(2) HTS.—The term ‘‘HTS’’ means the Har-
monized Tariff Schedule of the United States.
(3) TEXTILE
OR
APPAREL
GOOD.—The term 
‘‘textile or apparel good’’ means a good listed in the 
Annex to the Agreement on Textiles and Clothing 
referred to in section 101(d)(4) of the Uruguay 
Round Agreements Act (19 U.S.C. 3511(d)(4)). 
TITLE 
I—APPROVAL 
OF, 
AND 
GENERAL 
PROVISIONS 
RE-
LATING TO, THE AGREEMENT 
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE 
AGREEMENT. 
(a) APPROVAL OF AGREEMENT AND STATEMENT OF 
ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 
the Bipartisan Trade Promotion Authority Act of 2002 
(19 U.S.C. 3805) and section 151 of the Trade Act of 
1974 (19 U.S.C. 2191), the Congress approves—
(1) the United States-Chile Free Trade Agree-
ment entered into on June 6, 2003, with the Gov-
ernment of Chile and submitted to the Congress on 
July 15, 2003; and
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(2) the statement of administrative action pro-
posed to implement the Agreement that was sub-
mitted to the Congress on July 15, 2003. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE 
AGREEMENT.—At such time as the President determines 
that Chile has taken measures necessary to bring it into 
compliance with the provisions of the Agreement that take 
effect on the date on which the Agreement enters into 
force, the President is authorized to exchange notes with 
the Government of Chile providing for the entry into force, 
on or after January 1, 2004, of the Agreement for the 
United States. 
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 
STATES AND STATE LAW. 
(a) RELATIONSHIP TO UNITED STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CON-
FLICT.—No provision of the Agreement, nor the ap-
plication of any such provision to any person or cir-
cumstance, which is inconsistent with any law of the 
United States shall have effect. 
(2) CONSTRUCTION.—Nothing in this Act shall 
be construed—
(A) to amend or modify any law of the 
United States, or
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(B) to limit any authority conferred under 
any law of the United States, 
unless specifically provided for in this Act. 
(b) RELATIONSHIP
OF
AGREEMENT
TO
STATE 
LAW.—
(1) LEGAL CHALLENGE.—No State law, or the 
application thereof, may be declared invalid as to 
any person or circumstance on the ground that the 
provision or application is inconsistent with the 
Agreement, except in an action brought by the 
United States for the purpose of declaring such law 
or application invalid. 
(2) DEFINITION OF STATE LAW.—For purposes 
of this subsection, the term ‘‘State law’’ includes—
(A) any law of a political subdivision of a 
State; and 
(B) any State law regulating or taxing the 
business of insurance. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRI-
VATE REMEDIES.—No person other than the United 
States—
(1) shall have any cause of action or defense 
under the Agreement or by virtue of Congressional 
approval thereof; or
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(2) may challenge, in any action brought under 
any provision of law, any action or inaction by any 
department, agency, or other instrumentality of the 
United States, any State, or any political subdivision 
of a State on the ground that such action or inaction 
is inconsistent with the Agreement. 
SEC. 103. CONSULTATION AND LAYOVER PROVISIONS FOR, 
AND EFFECTIVE DATE OF, PROCLAIMED AC-
TIONS. 
(a) 
CONSULTATION
AND
LAYOVER
REQUIRE-
MENTS.—If a provision of this Act provides that the imple-
mentation of an action by the President by proclamation 
is subject to the consultation and layover requirements of 
this section, such action may be proclaimed only if—
(1) the President has obtained advice regarding 
the proposed action from—
(A) the appropriate advisory committees 
established under section 135 of the Trade Act 
of 1974 (19 U.S.C. 2155); and 
(B) the United States International Trade 
Commission; 
(2) the President has submitted a report to the 
Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of 
the Senate that sets forth—
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(A) the action proposed to be proclaimed 
and the reasons therefor; and 
(B) the advice obtained under paragraph 
(1); 
(3) a period of 60 calendar days, beginning on 
the first day on which the requirements set forth in 
paragraphs (1) and (2) have been met has expired; 
and 
(4) the President has consulted with such Com-
mittees regarding the proposed action during the pe-
riod referred to in paragraph (3). 
(b) EFFECTIVE DATE OF CERTAIN PROCLAIMED AC-
TIONS.—Any action proclaimed by the President under the 
authority of this Act that is not subject to the consultation 
and layover provisions under subsection (a) may not take 
effect before the 15th day after the date on which the text 
of the proclamation is published in the Federal Register.
SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF 
ENTRY INTO FORCE AND INITIAL REGULA-
TIONS. 
(a) IMPLEMENTING ACTIONS.—
(1) PROCLAMATION
AUTHORITY.—After the 
date of enactment of this Act—
(A) the President may proclaim such ac-
tions, and
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(B) other appropriate officers of the 
United States Government may issue such reg-
ulations, 
as may be necessary to ensure that any provision of 
this Act, or amendment made by this Act, that takes 
effect on the date the Agreement enters into force 
is appropriately implemented on such date, but no 
such proclamation or regulation may have an effec-
tive date earlier than the date of entry into force. 
(2) WAIVER OF 15-DAY RESTRICTION.—The 15-
day restriction contained in section 103(b) on the 
taking effect of proclaimed actions is waived to the 
extent that the application of such restriction would 
prevent the taking effect on the date the Agreement 
enters into force of any action proclaimed under this 
section. 
(b) INITIAL REGULATIONS.—Initial regulations nec-
essary or appropriate to carry out the actions required by 
or authorized under this Act or proposed in the statement 
of administrative action referred to in section 101(a)(2) 
to implement the Agreement shall, to the maximum extent 
feasible, be issued within 1 year after the date of entry 
into force of the Agreement. In the case of any imple-
menting action that takes effect on a date after the date 
of entry into force of the Agreement, initial regulations
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to carry out that action shall, to the maximum extent fea-
sible, be issued within 1 year after such effective date. 
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO-
CEEDINGS. 
(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—
The President is authorized to establish or designate with-
in the Department of Commerce an office that shall be 
responsible for providing administrative assistance to pan-
els established under chapter 22 of the Agreement. The 
office may not be considered to be an agency for purposes 
of section 552 of title 5, United States Code. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated for each fiscal year after 
fiscal year 2003 to the Department of Commerce such 
sums as may be necessary for the establishment and oper-
ations of the office under subsection (a) and for the pay-
ment of the United States share of the expenses of panels 
established under chapter 22 of the Agreement. 
SEC. 106. ARBITRATION OF CLAIMS. 
(a) SUBMISSION OF CERTAIN CLAIMS.—The United 
States is authorized to resolve any claim against the 
United States covered by article 10.15(1)(a)(i)(C) or 
10.15(1)(b)(i)(C) of the Agreement, pursuant to the In-
vestor-State Dispute Settlement procedures set forth in 
section B of chapter 10 of the Agreement.
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(b) CONTRACT CLAUSES.—All contracts executed by 
any agency of the United States on or after the date of 
entry into force of the Agreement shall contain a clause 
specifying the law that will apply to resolve any breach 
of contract claim.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 
(a) EFFECTIVE DATES.—Except as provided in sub-
section (b), the provisions of this Act and the amendments 
made by this Act take effect on the date the Agreement 
enters into force. 
(b) EXCEPTIONS.—Sections 1 through 3 and this 
title take effect on the date of the enactment of this Act. 
(c) TERMINATION
OF
THE AGREEMENT.—On the 
date on which the Agreement ceases to be in force, the 
provisions of this Act (other than this subsection) and the 
amendments made by this Act shall cease to be effective. 
TITLE II—CUSTOMS PROVISIONS 
SEC. 201. TARIFF MODIFICATIONS. 
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE 
AGREEMENT.—
(1) PROCLAMATION
AUTHORITY.—The Presi-
dent may proclaim—
(A) such modifications or continuation of 
any duty,
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(B) such continuation of duty-free or ex-
cise treatment, or 
(C) such additional duties, 
as the President determines to be necessary or ap-
propriate to carry out or apply articles 3.3, 3.7, 3.9, 
article 3.20 (8), (9), (10), and (11), and Annex 3.3 
of the Agreement. 
(2) EFFECT ON CHILEAN GSP STATUS.—Not-
withstanding section 502(a)(1) of the Trade Act of 
1974 (19 U.S.C. 2462(a)(1)), the President shall 
terminate the designation of Chile as a beneficiary 
developing country for purposes of title V of the 
Trade Act of 1974 on the date of entry into force 
of the Agreement. 
(b) OTHER TARIFF MODIFICATIONS.—Subject to the 
consultation and layover provisions of section 103(a), the 
President may proclaim—
(1) such modifications or continuation of any 
duty, 
(2) such modifications as the United States 
may agree to with Chile regarding the staging of any 
duty treatment set forth in Annex 3.3 of the Agree-
ment, 
(3) such continuation of duty-free or excise 
treatment, or
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(4) such additional duties, 
as the President determines to be necessary or appropriate 
to maintain the general level of reciprocal and mutually 
advantageous concessions with respect to Chile provided 
for by the Agreement. 
(c) ADDITIONAL TARIFFS ON AGRICULTURAL SAFE-
GUARD GOODS.—
(1) IN GENERAL.—In addition to any duty pro-
claimed under subsection (a) or (b), and subject to 
paragraphs (3) through (5), the Secretary of the 
Treasury shall assess a duty, in the amount pre-
scribed under paragraph (2), on an agricultural safe-
guard good if the Secretary of the Treasury deter-
mines that the unit import price of the good when 
it enters the United States, determined on an 
F.O.B. basis, is less than the trigger price indicated 
for that good in Annex 3.18 of the Agreement or 
any amendment thereto. 
(2) CALCULATION OF ADDITIONAL DUTY.—The 
amount of the additional duty assessed under this 
subsection shall be determined as follows: 
(A) If the difference between the unit im-
port price and the trigger price is less than, or 
equal to, 10 percent of the trigger price, no ad-
ditional duty shall be imposed.
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(B) If the difference between the unit im-
port price and the trigger price is greater than 
10 percent, but less than or equal to 40 per-
cent, of the trigger price, the additional duty 
shall be equal to 30 percent of the difference 
between the preferential tariff rate and the col-
umn 1 general rate of duty imposed under the 
HTS on like articles at the time the additional 
duty is imposed. 
(C) If the difference between the unit im-
port price and the trigger price is greater than 
40 percent, but less than or equal to 60 per-
cent, of the trigger price, the additional duty 
shall be equal to 50 percent of the difference 
between the preferential tariff rate and the col-
umn 1 general rate of duty imposed under the 
HTS on like articles at the time the additional 
duty is imposed. 
(D) If the difference between the unit im-
port price and the trigger price is greater than 
60 percent, but less than or equal to 75 per-
cent, of the trigger price, the additional duty 
shall be equal to 70 percent of the difference 
between the preferential tariff rate and the col-
umn 1 general rate of duty imposed under the
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HTS on like articles at the time the additional 
duty is imposed. 
(E) If the difference between the unit im-
port price and the trigger price is greater than 
75 percent of the trigger price, the additional 
duty shall be equal to 100 percent of the dif-
ference between the preferential tariff rate and 
the column 1 general rate of duty imposed 
under the HTS on like articles at the time the 
additional duty is imposed. 
(3) EXCEPTIONS.—No additional duty under 
this subsection shall be assessed on an agricultural 
safeguard good if, at the time of entry, the good is 
subject to import relief under—
(A) subtitle A of title III of this Act; or 
(B) chapter 1 of title II of the Trade Act 
of 1974 (19 U.S.C. 2251 et seq.). 
(4) TERMINATION.—This subsection shall cease 
to apply on the date that is 12 years after the date 
on which the Agreement enters into force. 
(5) TARIFF-RATE QUOTAS.—If an agricultural 
safeguard good is subject to a tariff-rate quota, and 
the in-quota duty rate for the good proclaimed pur-
suant to subsection (a) or (b) is zero, any additional
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duty assessed under this subsection shall be applied 
only to over-quota imports of the good. 
(6) NOTICE.—Not later than 60 days after the 
Secretary of the Treasury first assesses additional 
duties on an agricultural safeguard good under this 
subsection, the Secretary shall notify the Govern-
ment of Chile in writing of such action and shall 
provide to the Government of Chile data supporting 
the assessment of additional duties. 
(7) MODIFICATION OF TRIGGER PRICES.—Not 
later than 60 calendar days before agreeing with the 
Government of Chile pursuant to article 3.18(2)(b) 
of the Agreement on a modification to a trigger 
price for a good listed in Annex 3.18 of the Agree-
ment, the President shall notify the Committees on 
Ways and Means and Agriculture of the House of 
Representatives and the Committees on Finance and 
Agriculture of the Senate of the proposed modifica-
tion and the reasons therefor. 
(8) DEFINITIONS.—In this subsection: 
(A) AGRICULTURAL SAFEGUARD GOOD.—
The term ‘‘agricultural safeguard good’’ means 
a good—
(i) that qualifies as an originating 
good under section 202;
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(ii) that is included in the United 
States Agricultural Safeguard Product List 
set forth in Annex 3.18 of the Agreement; 
and 
(iii) for which a claim for preferential 
tariff treatment under the Agreement has 
been made. 
(B) F.O.B.—The term ‘‘F.O.B.’’ means 
free on board, regardless of the mode of trans-
portation, at the point of direct shipment by the 
seller to the buyer. 
(C) UNIT IMPORT PRICE.—The term ‘‘unit 
import price’’ means the price expressed in dol-
lars per kilogram.
(d) CONVERSION TO AD VALOREM RATES.—For pur-
poses of subsections (a) and (b), with respect to any good 
for which the base rate in the Schedule of the United 
States to Annex 3.3 of the Agreement is a specific or 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. 
SEC. 202. RULES OF ORIGIN. 
(a) ORIGINATING GOODS.—
(1) IN
GENERAL.—For purposes of this Act 
and for purposes of implementing the tariff treat-
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ment provided for under the Agreement, except as 
otherwise provided in this section, a good is an origi-
nating good if—
(A) the good is wholly obtained or pro-
duced entirely in the territory of Chile, the 
United States, or both; 
(B) the good—
(i) is produced entirely in the territory 
of Chile, the United States, or both, and 
(I) each of the nonoriginating 
materials used in the production of 
the good undergoes an applicable 
change in tariff classification specified 
in Annex 4.1 of the Agreement, or 
(II) the good otherwise satisfies 
any applicable regional value-content 
or other requirements specified in 
Annex 4.1 of the Agreement; and 
(ii) satisfies all other applicable re-
quirements of this section; or 
(C) the good is produced entirely in the 
territory of Chile, the United States, or both, 
exclusively from materials described in subpara-
graph (A) or (B).
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(2) SIMPLE
COMBINATION
OR
MERE
DILU-
TION.—A good shall not be considered to be an orig-
inating good and a material shall not be considered 
to be an originating material by virtue of having un-
dergone—
(A) simple combining or packaging oper-
ations; or
(B) mere dilution with water or another 
substance that does not materially alter the 
characteristics of the good or material. 
(b) 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) the value of all nonoriginating mate-
rials that are used in the production of the good 
and do not undergo the applicable change in 
tariff classification does not exceed 10 percent 
of the adjusted value of the good; 
(B) the value of such nonoriginating mate-
rials is included in the value of nonoriginating 
materials for any applicable regional value-con-
tent requirement; and
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(C) the good meets all other applicable re-
quirements of this section. 
(2) EXCEPTIONS.—Paragraph (1) does not 
apply to the following: 
(A) A nonoriginating material provided for 
in chapter 4 of the HTS, or a nonoriginating 
dairy preparation containing over 10 percent by 
weight of milk solids provided for in subheading 
1901.90 or 2106.90 of the HTS, that is used 
in the production of a good provided for in 
chapter 4 of the HTS. 
(B) A nonoriginating material provided for 
in chapter 4 of the HTS, or nonoriginating 
dairy preparations containing over 10 percent 
by weight of milk solids provided for in sub-
heading 1901.90 of the HTS, that are used in 
the production of the following goods: 
(i) Infant preparations containing 
over 10 percent in weight of milk solids 
provided for in subheading 1901.10 of the 
HTS. 
(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 of the HTS.
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(iii) Dairy preparations containing 
over 10 percent by weight of milk solids 
provided for in subheading 1901.90 or 
2106.90 of the HTS. 
(iv) Goods provided for in heading 
2105 of the HTS. 
(v) Beverages containing milk pro-
vided for in subheading 2202.90 of the 
HTS. 
(vi) Animal feeds containing over 10 
percent by weight of milk solids provided 
for in subheading 2309.90 of the HTS. 
(C) A nonoriginating material provided for 
in heading 0805 of the HTS, or any of sub-
headings 2009.11.00 through 2009.39 of the 
HTS, that is used in the production of a good 
provided for in any of subheadings 2009.11.00 
through 2009.39 of the HTS, or in fruit or veg-
etable juice of any single fruit or vegetable, for-
tified with minerals or vitamins, concentrated 
or unconcentrated, provided for in subheading 
2106.90 or 2202.90 of the HTS. 
(D) A nonoriginating material provided for 
in chapter 15 of the HTS that is used in the 
production of a good provided for in any of
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headings 1501.00.00 through 1508, 1512, 
1514, and 1515 of the HTS. 
(E) A nonoriginating material provided for 
in heading 1701 of the HTS that is used in the 
production of a good provided for in any of 
headings 1701 through 1703 of the HTS.
(F) A nonoriginating material provided for 
in chapter 17 of the HTS or in heading 
1805.00.00 of the HTS that is used in the pro-
duction of a good provided for in subheading 
1806.10 of the HTS. 
(G) A nonoriginating material provided for 
in any of headings 2203 through 2208 of the 
HTS that is used in the production of a good 
provided for in heading 2207 or 2208 of the 
HTS. 
(H) A nonoriginating material used in the 
production of a good provided for in any of 
chapters 1 through 21 of the HTS, unless the 
nonoriginating material is provided for in a dif-
ferent subheading than the good for which ori-
gin is being determined under this section. 
(3) GOODS
PROVIDED
FOR
IN
CHAPTERS
THROUGH 63 OF THE HTS.—
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(A) IN GENERAL.—Except as provided in 
subparagraph (B), a good provided for in any 
of chapters 50 through 63 of the HTS that is 
not an originating good because certain fibers 
or yarns used in the production of the compo-
nent of the good that determines the tariff clas-
sification of the good do not undergo an appli-
cable change in tariff classification set out in 
Annex 4.1 of the Agreement, shall be consid-
ered to be an originating good if the total 
weight of all such fibers or yarns in that com-
ponent is not more than 7 percent of the total 
weight of that component. 
(B) 
CERTAIN
TEXTILE
OR
APPAREL 
GOODS.—A textile or apparel good containing 
elastomeric yarns in the component of the good 
that determines the tariff classification of the 
good shall be considered to be an originating 
good only if such yarns are wholly formed in 
the territory of Chile or the United States. 
(c) ACCUMULATION.—
(1) ORIGINATING
GOODS
INCORPORATED
IN 
GOODS OF OTHER COUNTRY.—Originating goods or 
materials of Chile or the United States that are in-
corporated into a good in the territory of the other
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country shall be considered to originate in the terri-
tory of the other country. 
(2) MULTIPLE PROCEDURES.—A good that is 
produced in the territory of Chile, the United States, 
or both, by 1 or more producers, is an originating 
good if the good satisfies the requirements of sub-
section (a) and all other applicable requirements of 
this section. 
(d) REGIONAL VALUE-CONTENT.—
(1) IN GENERAL.—For purposes of subsection 
(a)(2), the regional value-content of a good referred 
to in Annex 4.1 of the Agreement shall be cal-
culated, at the choice of the person claiming pref-
erential tariff treatment for the good, on the basis 
of the build-down method described in paragraph (2) 
or the build-up method described in paragraph (3), 
unless otherwise provided in Annex 4.1 of the Agree-
ment. 
(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:
RVC =
AV - VNM 
× 100
AV 
(B) DEFINITIONS.—For purposes of sub-
paragraph (A):
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(i) The term ‘‘RVC’’ means the re-
gional value-content, expressed as a per-
centage. 
(ii) The term ‘‘AV’’ means the ad-
justed value. 
(iii) The term ‘‘VNM’’ means the 
value of nonoriginating materials used by 
the producer in the production of the good. 
(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:
RVC =
VOM 
× 100
AV 
(B) DEFINITIONS.—For purposes of sub-
paragraph (A): 
(i) The term ‘‘RVC’’ means the re-
gional value-content, expressed as a per-
centage. 
(ii) The term ‘‘AV’’ means the ad-
justed value. 
(iii) The term ‘‘VOM’’ means the 
value of originating materials used by the 
producer in the production of the good. 
(e) VALUE OF MATERIALS.—
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(1) IN GENERAL.—For purposes of calculating 
the regional value-content of a good under sub-
section (d), and for purposes of applying the de 
minimis rules under subsection (b), 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 with respect to that 
importation; 
(B) in the case of a material acquired in 
the territory in which the good is produced, ex-
cept for a material to which subparagraph (C) 
applies, the producer’s price actually paid or 
payable for the material; 
(C) in the case of a material provided to 
the producer without charge, or at a price re-
flecting a discount or similar reduction, the sum 
of—
(i) all expenses incurred in the 
growth, production, or manufacture of the 
material, including general expenses; and 
(ii) an amount for profit; or 
(D) in the case of a material that is self-
produced, the sum of—
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(i) all expenses incurred in the pro-
duction of the material, including general 
expenses; and 
(ii) an amount for profit. 
(2) FURTHER ADJUSTMENTS TO THE VALUE OF 
MATERIALS.—
(A) ORIGINATING
MATERIALS.—The fol-
lowing expenses, if not included in the value of 
an originating material calculated under para-
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 to the location of 
the producer. 
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of Chile, the United States, or both, 
other than duties and 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
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production of the good, less the value of 
renewable scrap or byproduct. 
(B) NONORIGINATING
MATERIALS.—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: 
(i) The costs of freight, insurance, 
packing, and all other costs incurred in 
transporting the material to the location of 
the producer. 
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of Chile, the United States, or both, 
other than duties and 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-
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nating material in the territory of Chile or 
the United States. 
(f) ACCESSORIES, SPARE PARTS, OR TOOLS.—Acces-
sories, spare parts, or tools delivered with a good that 
form part of the good’s standard accessories, spare parts, 
or tools shall be regarded as a material used in the produc-
tion of the good, if—
(1) the accessories, spare parts, or tools are 
classified with and not invoiced separately from the 
good; and 
(2) the quantities and value of the accessories, 
spare parts, or tools are customary for the good. 
(g) FUNGIBLE GOODS AND MATERIALS.—
(1) IN GENERAL.—
(A) CLAIM
FOR
PREFERENTIAL
TREAT-
MENT.—A person claiming preferential tariff 
treatment for a good may claim that a fungible 
good or material is originating either based on 
the physical segregation of each fungible good 
or material or by using an inventory manage-
ment method. 
(B) INVENTORY MANAGEMENT METHOD.—
In this subsection, the term ‘‘inventory manage-
ment method’’ means—
(i) averaging;
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(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 Chile 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 particular fungible goods or 
materials shall continue to use that method for those 
goods or materials throughout the fiscal year of that 
person. 
(h) PACKAGING MATERIALS AND CONTAINERS FOR 
RETAIL SALE.—Packaging materials and containers in 
which a good is packaged for retail sale, if classified with 
the good, shall be disregarded in determining whether all 
nonoriginating materials used in the production of the 
good undergo the applicable change in tariff classification 
set out in Annex 4.1 of the Agreement, and, if the good 
is subject to a regional value-content requirement, the 
value of such packaging materials and containers shall be
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taken into account as originating or nonoriginating mate-
rials, as the case may be, in calculating the regional value-
content of the good.
(i) PACKING MATERIALS
AND CONTAINERS
FOR 
SHIPMENT.—Packing materials and containers for ship-
ment shall be disregarded in determining whether—
(1) the nonoriginating materials used in the 
production of the good undergo an applicable change 
in tariff classification set out in Annex 4.1 of the 
Agreement; and 
(2) the good satisfies a regional value-content 
requirement. 
(j) INDIRECT MATERIALS.—An indirect material 
shall be considered to be an originating material without 
regard to where it is produced. 
(k) TRANSIT AND TRANSSHIPMENT.—A good that 
has undergone production necessary to qualify as an origi-
nating good under subsection (a) shall not be considered 
to be an originating good if, subsequent to that produc-
tion, the good undergoes further production or any other 
operation outside the territory of Chile or the United 
States, other than unloading, reloading, or any other proc-
ess necessary to preserve the good in good condition or 
to transport the good to the territory of Chile or the 
United States.
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(l) TEXTILE AND APPAREL GOODS CLASSIFIABLE AS 
GOODS PUT UP IN SETS.—Notwithstanding the rules set 
forth in Annex 4.1 of the Agreement, textile and apparel 
goods classifiable as goods put up in sets for retail sale 
as provided for in General Rule of Interpretation 3 of the 
Harmonized System shall not be considered to be origi-
nating goods unless each of the goods in the set is an origi-
nating good or the total value of the nonoriginating goods 
in the set does not exceed 10 percent of the value of the 
set determined for purposes of assessing customs duties. 
(m) APPLICATION AND INTERPRETATION.—In this 
section: 
(1) The basis for any tariff classification is the 
HTS.
(2) Any cost or value referred to in this section 
shall be recorded and maintained in accordance with 
the generally accepted accounting principles applica-
ble in the territory of the country in which the good 
is produced (whether Chile or the United States). 
(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 
Implementation of Article VII of the General Agree-
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ment on Tariffs and Trade 1994 referred to in sec-
tion 101(d)(8) of the Uruguay Round Agreements 
Act, except that such value may be adjusted to ex-
clude any costs, charges, or expenses incurred for 
transportation, insurance, and related services inci-
dent to the international shipment of the merchan-
dise from the country of exportation to the place of 
importation. 
(2) FUNGIBLE
GOODS
OR
FUNGIBLE
MATE-
RIALS.—The terms ‘‘fungible goods’’ and ‘‘fungible 
materials’’ mean goods or materials, as the case may 
be, that are interchangeable for commercial purposes 
and the properties of which are essentially identical. 
(3) GENERALLY ACCEPTED ACCOUNTING PRIN-
CIPLES.—The term ‘‘generally accepted accounting 
principles’’ means the principles, rules, and proce-
dures, including both broad and specific guidelines, 
that define the accounting practices accepted in the 
territory of Chile or the United States, as the case 
may be.
(4) GOODS WHOLLY OBTAINED OR PRODUCED 
ENTIRELY
IN
THE
TERRITORY
OF
CHILE, THE 
UNITED STATES, OR BOTH.—The term ‘‘goods whol-
ly obtained or produced entirely in the territory of 
Chile, the United States, or both’’ means—
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(A) mineral goods extracted in the terri-
tory of Chile, the United States, or both; 
(B) vegetable goods, as such goods are de-
fined in the Harmonized System, harvested in 
the territory of Chile, the United States, or 
both; 
(C) live animals born and raised in the ter-
ritory of Chile, the United States, or both; 
(D) goods obtained from hunting, trap-
ping, or fishing in the territory of Chile, the 
United States, or both; 
(E) goods (fish, shellfish, and other marine 
life) taken from the sea by vessels registered or 
recorded with Chile or the United States and 
flying the flag of that country; 
(F) goods produced on board factory ships 
from the goods referred to in subparagraph 
(E), if such factory ships are registered or re-
corded with Chile or the United States and fly 
the flag of that country; 
(G) goods taken by Chile or the United 
States or a person of Chile or the United States 
from the seabed or beneath the seabed outside 
territorial waters, if Chile or the United States 
has rights to exploit such seabed;
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(H) goods taken from outer space, if the 
goods are obtained by Chile or the United 
States or a person of Chile or the United States 
and not processed in the territory of a country 
other than Chile or the United States; 
(I) waste and scrap derived from—
(i) production in the territory of Chile, 
the United States, or both; or 
(ii) used goods collected in the terri-
tory of Chile, the United States, or both, 
if such goods are fit only for the recovery 
of raw materials; 
(J) recovered goods derived in the territory 
of Chile or the United States from used goods, 
and used in the territory of that country in the 
production of remanufactured goods; and 
(K) goods produced in the territory of 
Chile, the United States, or both, exclusively—
(i) from goods referred to in any of 
subparagraphs (A) through (I), or 
(ii) from the derivatives of goods re-
ferred to in clause (i), 
at any stage of production.
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(7) MATERIAL.—The term ‘‘material’’ means a 
good that is used in the production of another good, 
including a part, ingredient, or indirect material. 
(8) MATERIAL THAT IS SELF-PRODUCED.—The 
term ‘‘material that is self-produced’’ means a mate-
rial that is an originating good produced by a pro-
ducer of a good and used in the production of that 
good. 
(9) 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 an originating good under this section. 
(10) PACKING
MATERIALS
AND
CONTAINERS 
FOR SHIPMENT.—The term ‘‘packing materials and 
containers for shipment’’ means the goods used to 
protect a good during its transportation, and does 
not include the packaging materials and containers 
in which a good is packaged for retail sale. 
(11) PREFERENTIAL
TARIFF
TREATMENT.—
The term ‘‘preferential tariff treatment’’ means the 
customs duty rate that is applicable to an origi-
nating good pursuant to chapter 3 of the Agree-
ment.
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(12) PRODUCER.—The term ‘‘producer’’ means 
a person who engages in the production of a good 
in the territory of Chile or the United States. 
(13) PRODUCTION.—The term ‘‘production’’ 
means growing, mining, harvesting, fishing, raising, 
trapping, hunting, manufacturing, processing, as-
sembling, or disassembling a good. 
(14) RECOVERED GOODS.—
(A) IN
GENERAL.—The term ‘‘recovered 
goods’’ means materials in the form of indi-
vidual parts that are the result of—
(i) the complete disassembly of used 
goods into individual parts; and 
(ii) the cleaning, inspecting, testing, 
or other processing of those parts as nec-
essary for improvement to sound working 
condition by one or more of the processes 
described in subparagraph (B), in order 
for such parts to be assembled with other 
parts, including other parts that have un-
dergone the processes described in this 
paragraph, in the production of a remanu-
factured good. 
(B) PROCESSES.—The processes referred 
to in subparagraph (A)(ii) are welding, flame
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spraying, surface machining, knurling, plating, 
sleeving, and rewinding. 
(15) REMANUFACTURED GOOD.—The term ‘‘re-
manufactured good’’ means an industrial good as-
sembled in the territory of Chile or the United 
States, that is listed in Annex 4.18 of the Agree-
ment, and— 
(A) is entirely or partially comprised of re-
covered goods; 
(B) has the same life expectancy and 
meets the same performance standards as a 
new good; and 
(C) enjoys the same factory warranty as 
such a new good.
(o) PRESIDENTIAL PROCLAMATION AUTHORITY.—
(1) IN GENERAL.—The President is authorized 
to proclaim, as part of the HTS—
(A) the provisions set out in Annex 4.1 of 
the Agreement; and 
(B) any additional subordinate category 
necessary to carry out this title consistent with 
the Agreement. 
(2) MODIFICATIONS.—
(A) IN GENERAL.—Subject to the consulta-
tion and layover provisions of section 103(a),
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the President may proclaim modifications to the 
provisions proclaimed under the authority of 
paragraph (1)(A), other than provisions of 
chapters 50 through 63 of the HTS, as in-
cluded in Annex 4.1 of the Agreement. 
(B) ADDITIONAL
PROCLAMATIONS.—Not-
withstanding subparagraph (A), and subject to 
the consultation and layover provisions of sec-
tion 103(a), the President may proclaim—
(i) modifications to the provisions pro-
claimed under the authority of paragraph 
(1)(A) that are necessary to implement an 
agreement with Chile pursuant to article 
3.20(5) of the Agreement; and 
(ii) before the 1st anniversary of the 
date of the enactment of this Act, modi-
fications to correct any typographical, cler-
ical, or other nonsubstantive technical 
error regarding the provisions of chapters 
50 through 63 of the HTS, as included in 
Annex 4.1 of the Agreement. 
SEC. 203. DRAWBACK. 
(a) DEFINITION OF A GOOD SUBJECT TO CHILE FTA 
DRAWBACK.—For purposes of this Act and the amend-
ments made by subsection (b), the term ‘‘good subject to
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Chile FTA drawback’’ means any imported good other 
than the following: 
(1) A good entered under bond for transpor-
tation and exportation to Chile. 
(2)(A) A good exported to Chile in the same 
condition as when imported into the United States. 
(B) For purposes of subparagraph (A)—
(i) processes such as testing, cleaning, re-
packing, inspecting, sorting, or marking a good, 
or preserving it in its same condition, shall not 
be considered to change the condition of the 
good; and 
(ii) if a good described in subparagraph 
(A) is commingled with fungible goods and ex-
ported in the same condition, the origin of the 
good for the purposes of subsection (j)(1) of 
section 313 of the Tariff Act of 1930 (19 
U.S.C. 1313(j)(1)) may be determined on the 
basis of the inventory methods provided for in 
the regulations implementing this title. 
(3) A good—
(A) that is—
(i) deemed to be exported from the 
United States;
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(ii) used as a material in the produc-
tion of another good that is deemed to be 
exported to Chile; or 
(iii) substituted for by a good of the 
same kind and quality that is used as a 
material in the production of another good 
that is deemed to be exported to Chile; and 
(B) that is delivered—
(i) to a duty-free shop; 
(ii) for ship’s stores or supplies for a 
ship or aircraft; or 
(iii) for use in a project undertaken 
jointly by the United States and Chile and 
destined to become the property of the 
United States. 
(4) A good exported to Chile for which a refund 
of customs duties is granted by reason of—
(A) the failure of the good to conform to 
sample or specification; or 
(B) the shipment of the good without the 
consent of the consignee. 
(5) A good that qualifies under the rules of ori-
gin set out in section 202 that is—
(A) exported to Chile;
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(B) used as a material in the production of 
another good that is exported to Chile; or 
(C) substituted for by a good of the same 
kind and quality that is used as a material in 
the production of another good that is exported 
to Chile. 
(b) CONSEQUENTIAL AMENDMENTS.—
(1) BONDED MANUFACTURING WAREHOUSES.—
Section 311 of the Tariff Act of 1930 (19 U.S.C. 
1311) is amended by adding at the end the following 
new paragraph: 
‘‘No article manufactured in a bonded warehouse 
from materials that are goods subject to Chile FTA draw-
back, as defined in section 203(a) of the United States-
Chile Free Trade Agreement Implementation Act, may be 
withdrawn from warehouse for exportation to Chile with-
out assessment of a duty on the materials in their condi-
tion and quantity, and at their weight, at the time of im-
portation into the United States. The duty shall be paid 
before the 61st day after the date of exportation, except 
that the duty may be waived or reduced by—
‘‘(1) 100 percent during the 8-year period be-
ginning on January 1, 2004; 
‘‘(2) 75 percent during the 1-year period begin-
ning on January 1, 2012;
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‘‘(3) 50 percent during the 1-year period begin-
ning on January 1, 2013; and 
‘‘(4) 25 percent during the 1-year period begin-
ning on January 1, 2014.’’.
(2) BONDED SMELTING AND REFINING WARE-
HOUSES.—Section 312 of the Tariff Act of 1930 (19 
U.S.C. 1312) is amended—
(A) in paragraph (1) of subsection (b), by 
striking ‘‘except that’’ and all that follows 
through subparagraph (B) and inserting the 
following: ‘‘except that—
‘‘(A) in the case of a withdrawal for expor-
tation of such a product to a NAFTA country, 
as defined in section 2(4) of the North Amer-
ican Free Trade Agreement Implementation 
Act, if any of the imported metal-bearing mate-
rials are goods subject to NAFTA drawback, as 
defined in section 203(a) of that Act, the duties 
on the materials shall be paid, and the charges 
against the bond canceled, before the 61st day 
after the date of exportation; but upon the pres-
entation, before such 61st day, of satisfactory 
evidence of the amount of any customs duties 
paid to the NAFTA country on the product, the 
duties on the materials may be waived or re-
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duced (subject to section 508(b)(2)(B)) in an 
amount that does not exceed the lesser of—
‘‘(i) the total amount of customs du-
ties owed on the materials on importation 
into the United States, or 
‘‘(ii) the total amount of customs du-
ties paid to the NAFTA country on the 
product, and
‘‘(B) in the case of a withdrawal for expor-
tation of such a product to Chile, if any of the 
imported metal-bearing materials are goods 
subject to Chile FTA drawback, as defined in 
section 203(a) of the United States-Chile Free 
Trade Agreement Implementation Act, the du-
ties on the materials shall be paid, and the 
charges against the bond canceled, before the 
61st day after the date of exportation, except 
that the duties may be waived or reduced by—
‘‘(i) 100 percent during the 8-year pe-
riod beginning on January 1, 2004, 
‘‘(ii) 75 percent during the 1-year pe-
riod beginning on January 1, 2012, 
‘‘(iii) 50 percent during the 1-year pe-
riod beginning on January 1, 2013, and
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‘‘(iv) 25 percent during the 1-year pe-
riod beginning on January 1, 2014, or’’; 
(B) in paragraph (4) of subsection (b), by 
striking ‘‘except that’’ and all that follows 
through subparagraph (B) and inserting the 
following: ‘‘except that—
‘‘(A) in the case of a withdrawal for expor-
tation of such a product to a NAFTA country, 
as defined in section 2(4) of the North Amer-
ican Free Trade Agreement Implementation 
Act, if any of the imported metal-bearing mate-
rials are goods subject to NAFTA drawback, as 
defined in section 203(a) of that Act, the duties 
on the materials shall be paid, and the charges 
against the bond canceled, before the 61st day 
after the date of exportation; but upon the pres-
entation, before such 61st day, of satisfactory 
evidence of the amount of any customs duties 
paid to the NAFTA country on the product, the 
duties on the materials may be waived or re-
duced (subject to section 508(b)(2)(B)) in an 
amount that does not exceed the lesser of—
‘‘(i) the total amount of customs du-
ties owed on the materials on importation 
into the United States, or
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‘‘(ii) the total amount of customs du-
ties paid to the NAFTA country on the 
product, and
‘‘(B) in the case of a withdrawal for expor-
tation of such a product to Chile, if any of the 
imported metal-bearing materials are goods 
subject to Chile FTA drawback, as defined in 
section 203(a) of the United States-Chile Free 
Trade Agreement Implementation Act, the du-
ties on the materials shall be paid, and the 
charges against the bond canceled, before the 
61st day after the date of exportation, except 
that the duties may be waived or reduced by—
‘‘(i) 100 percent during the 8-year pe-
riod beginning on January 1, 2004, 
‘‘(ii) 75 percent during the 1-year pe-
riod beginning on January 1, 2012, 
‘‘(iii) 50 percent during the 1-year pe-
riod beginning on January 1, 2013, and 
‘‘(iv) 25 percent during the 1-year pe-
riod beginning on January 1, 2014, or’’; 
and 
(C) in subsection (d), in the matter pre-
ceding paragraph (1), by striking ‘‘except that’’ 
and all that follows through the end of para-
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graph (2) and inserting the following: ‘‘except 
that—
‘‘(1) in the case of a withdrawal for exportation 
to a NAFTA country, as defined in section 2(4) of 
the North American Free Trade Agreement Imple-
mentation Act, if any of the imported metal-bearing 
materials are goods subject to NAFTA drawback, as 
defined in section 203(a) of that Act, charges 
against the bond shall be paid before the 61st day 
after the date of exportation; but upon the presen-
tation, before such 61st day, of satisfactory evidence 
of the amount of any customs duties paid to the 
NAFTA country on the product, the bond shall be 
credited (subject to section 508(b)(2)(B)) in an 
amount not to exceed the lesser of—
‘‘(A) the total amount of customs duties 
paid or owed on the materials on importation 
into the United States, or 
‘‘(B) the total amount of customs duties 
paid to the NAFTA country on the product; 
and
‘‘(2) in the case of a withdrawal for exportation 
to Chile, if any of the imported metal-bearing mate-
rials are goods subject to Chile FTA drawback, as 
defined in section 203(a) of the United States-Chile
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Free Trade Agreement Implementation Act, charges 
against the bond shall be paid before the 61st day 
after the date of exportation, and the bond shall be 
credited in an amount equal to—
‘‘(A) 100 percent of the total amount of 
customs duties paid or owed on the materials 
on importation into the United States during 
the 8-year period beginning on January 1, 
2004, 
‘‘(B) 75 percent of the total amount of 
customs duties paid or owed on the materials 
on importation into the United States during 
the 1-year period beginning on January 1, 
2012, 
‘‘(C) 50 percent of the total amount of 
customs duties paid or owed on the materials 
on importation into the United States during 
the 1-year period beginning on January 1, 
2013, and 
‘‘(D) 25 percent of the total amount of 
customs duties paid or owed on the materials 
on importation into the United States during 
the 1-year period beginning on January 1, 
2014.’’.
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‘‘(iii) 50 percent during the 1-year period begin-
ning on January 1, 2013; and 
‘‘(iv) 25 percent during the 1-year period begin-
ning on January 1, 2014.’’; and 
(C) in subsection (o)—
(i) by striking ‘‘(o)’’ and inserting the 
following: 
‘‘(o) SPECIAL RULES FOR CERTAIN VESSELS AND 
IMPORTED MATERIALS.—’’; and 
(ii) by adding at the end the following 
new paragraphs: 
‘‘(3) For purposes of subsection (g), if—
‘‘(A) a vessel is built for the account and own-
ership of a resident of Chile or the Government of 
Chile, and 
‘‘(B) imported materials that are used in the 
construction and equipment of the vessel are goods 
subject to Chile FTA drawback, as defined in sec-
tion 203(a) of the United States-Chile Free Trade 
Agreement Implementation Act, 
no customs duties on such materials may be refunded, 
waived, or reduced, except as provided in paragraph (4). 
‘‘(4) The customs duties referred to in paragraph (3) 
may be refunded, waived or reduced by—
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‘‘(A) 100 percent during the 8-year period be-
ginning on January 1, 2004; 
‘‘(B) 75 percent during the 1-year period begin-
ning on January 1, 2012; 
‘‘(C) 50 percent during the 1-year period begin-
ning on January 1, 2013; and 
‘‘(D) 25 percent during the 1-year period begin-
ning on January 1, 2014.’’. 
(4) MANIPULATION
IN
WAREHOUSE.—Section 
562 of the Tariff Act of 1930 (19 U.S.C. 1562) is 
amended—
(A) in paragraph (3), by striking ‘‘to a 
NAFTA country’’ and inserting ‘‘to Chile, to a 
NAFTA country,’’; 
(B) by striking ‘‘and’’ at the end of para-
graph (4)(B); 
(C) by striking the period at the end of 
paragraph (5) and inserting ‘‘; and’’; and 
(D) by inserting after paragraph (5) the 
following: 
‘‘(6)(A) without payment of duties for expor-
tation to Chile, if the merchandise is of a kind de-
scribed in any of paragraphs (1) through (5) of sec-
tion 203(a) of the United States-Chile Free Trade 
Agreement Implementation Act; and
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‘‘(B) for exportation to Chile if the merchandise 
consists of goods subject to Chile FTA drawback, as 
defined in section 203(a) of the United States-Chile 
Free Trade Agreement Implementation Act, except 
that—
‘‘(i) the merchandise may not be with-
drawn from warehouse without assessment of a 
duty on the merchandise in its condition and 
quantity, and at its weight, at the time of with-
drawal from the warehouse with such additions 
to, or deductions from, the final appraised value 
as may be necessary by reason of a change in 
condition, and 
‘‘(ii) duty shall be paid on the merchandise 
before the 61st day after the date of expor-
tation, except that such duties may be waived 
or reduced by—
‘‘(I) 100 percent during the 8-year pe-
riod beginning on January 1, 2004, 
‘‘(II) 75 percent during the 1-year pe-
riod beginning on January 1, 2012, 
‘‘(III) 50 percent during the 1-year 
period beginning on January 1, 2013, and 
‘‘(IV) 25 percent during the 1-year 
period beginning on January 1, 2014.’’.
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(5) FOREIGN TRADE ZONES.—Section 3(a) of 
the Act of June 18, 1934 (commonly known as the 
‘‘Foreign Trade Zones Act’’; 19 U.S.C. 81c(a)) is 
amended by striking the end period and inserting 
the following: ‘‘: Provided further, That no merchan-
dise that consists of goods subject to Chile FTA 
drawback, as defined in section 203(a) of the United 
States-Chile Free Trade Agreement Implementation 
Act, that is manufactured or otherwise changed in 
condition shall be exported to Chile without an as-
sessment of a duty on the merchandise in its condi-
tion and quantity, and at its weight, at the time of 
its exportation (or if the privilege in the first proviso 
to this subsection was requested, an assessment of 
a duty on the merchandise in its condition and 
quantity, and at its weight, at the time of its admis-
sion into the zone) and the payment of the assessed 
duty before the 61st day after the date of expor-
tation of the article, except that the customs duty 
may be waived or reduced by (1) 100 percent during 
the 8-year period beginning on January 1, 2004; (2) 
75 percent during the 1-year period beginning on 
January 1, 2012; (3) 50 percent during the 1-year 
period beginning on January 1, 2013; and (4) 25
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percent during the 1-year period beginning on Janu-
ary 1, 2014.’’. 
(c) INAPPLICABILITY
TO
COUNTERVAILING
AND 
ANTIDUMPING DUTIES.—Nothing in this section or the 
amendments made by this section shall be considered to 
authorize the refund, waiver, or reduction of counter-
vailing duties or antidumping duties imposed on an im-
ported good. 
SEC. 204. 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 inserting after paragraph (11) the following: 
‘‘(12) 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-Chile 
Free Trade Agreement Implementation Act. Any service 
for which an exemption from such fee is provided by rea-
son of this paragraph may not be funded with money con-
tained in the Customs User Fee Account.’’. 
SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; DE-
NIAL 
OF 
PREFERENTIAL 
TARIFF 
TREAT-
MENT; FALSE CERTIFICATES OF ORIGIN. 
(a) DISCLOSURE
OF INCORRECT INFORMATION.—
Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) 
is amended—
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(1) in subsection (c)—
(A) by redesignating paragraph (6) as 
paragraph (7); and 
(B) by inserting after paragraph (5) the 
following new paragraph: 
‘‘(6) PRIOR
DISCLOSURE
REGARDING
CLAIMS 
UNDER
THE
UNITED
STATES-CHILE
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-Chile 
Free Trade Agreement Implementation Act if the 
importer, in accordance with regulations issued by 
the Secretary of the Treasury, voluntarily makes a 
corrected declaration and pays any duties owing.’’; 
and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) FALSE CERTIFICATIONS OF ORIGIN UNDER THE 
UNITED STATES-CHILE 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 Chile 
FTA Certificate of Origin (as defined in section 
508(f)(1)(B) of this Act that a good exported from
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the United States qualifies as an originating good 
under the rules of origin set out in section 202 of 
the United States-Chile Free Trade Agreement Im-
plementation Act. The procedures and penalties of 
this section that apply to a violation of subsection 
(a) also apply to a violation of this subsection. 
‘‘(2) IMMEDIATE AND VOLUNTARY DISCLOSURE 
OF INCORRECT INFORMATION.—No penalty shall be 
imposed under this subsection if, immediately after 
an exporter or producer that issued a Chile FTA 
Certificate of Origin has reason to believe that such 
certificate contains or is based on incorrect informa-
tion, the exporter or producer voluntarily provides 
written notice of such incorrect information to every 
person to whom the certificate was issued. 
‘‘(3) EXCEPTION.—A person may not be consid-
ered to have violated paragraph (1) if—
‘‘(A) the information was correct at the 
time it was provided in a Chile FTA Certificate 
of Origin but was later rendered incorrect due 
to a change in circumstances; and 
‘‘(B) the person immediately and volun-
tarily provides written notice of the change in 
circumstances to all persons to whom the per-
son provided the certificate.’’.
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(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: 
‘‘(g) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT UNDER UNITED STATES-CHILE FREE TRADE 
AGREEMENT.—If the Bureau of Customs and Border Pro-
tection or the Bureau of Immigration and Customs En-
forcement finds indications of a pattern of conduct by an 
importer of false or unsupported representations that 
goods qualify under the rules of origin set out in section 
202 of the United States-Chile Free Trade Agreement Im-
plementation Act, the Bureau of Customs and Border Pro-
tection, in accordance with regulations issued by the Sec-
retary of the Treasury, may deny preferential tariff treat-
ment under the United States-Chile Free Trade Agree-
ment to entries of identical goods imported by that person 
until the person establishes to the satisfaction of the Bu-
reau of Customs and Border Protection that representa-
tions of that person are in conformity with such section 
202.’’. 
SEC. 206. RELIQUIDATION OF ENTRIES. 
Subsection (d) of section 520 of the Tariff Act of 
1930 (19 U.S.C. 1520(d)) is amended—
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(1) by striking ‘‘(d)’’ and inserting the fol-
lowing: 
‘‘(d) GOODS QUALIFYING UNDER FREE TRADE 
AGREEMENT RULES OF ORIGIN.—’’; 
(2) in the matter preceding paragraph (1), by 
inserting ‘‘or section 202 of the United States-Chile 
Free Trade Agreement Implementation Act’’ after 
‘‘Act’’; 
(3) in paragraph (1), by striking ‘‘those’’ and 
inserting ‘‘the applicable’’; and 
(4) in paragraph (2), by inserting before the 
semicolon ‘‘, or other certificates of origin, as the 
case may be’’. 
SEC. 207. RECORDKEEPING REQUIREMENTS. 
Section 508 of the Tariff Act of 1930 (19 U.S.C. 
1508) is amended—
(1) by striking the heading of subsection (b) 
and inserting the following: ‘‘EXPORTATIONS
TO 
NAFTA COUNTRIES.—’’; and 
(2) by adding at the end the following: 
‘‘(f) CERTIFICATES
OF ORIGIN
FOR GOODS EX-
PORTED
UNDER
THE
UNITED
STATES-CHILE
FREE 
TRADE AGREEMENT.—
‘‘(1) DEFINITIONS.—In this subsection:
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‘‘(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) if applicable, the purchase, cost, 
and value of, and payment for, all mate-
rials, including recovered goods, used in 
the production of the good; and 
‘‘(iii) if applicable, the production of 
the good in the form in which it was ex-
ported. 
‘‘(B) CHILE
FTA
CERTIFICATE
OF
ORI-
GIN.—The term ‘Chile FTA Certificate of Ori-
gin’ means the certification, established under 
article 4.13 of the United States-Chile Free 
Trade Agreement, that a good qualifies as an 
originating good under such Agreement. 
‘‘(2) EXPORTS
TO
CHILE.—Any person who 
completes and issues a Chile FTA Certificate of Ori-
gin for a good exported from the United States shall 
make, keep, and, pursuant to rules and regulations
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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 Certificate or copies thereof). 
‘‘(3) RETENTION PERIOD.—Records and sup-
porting documents shall be kept by the person who 
issued a Chile FTA Certificate of Origin for at least 
5 years after the date on which the certificate was 
issued. 
‘‘(g) PENALTIES.—Any person who fails to retain 
records and supporting documents required by subsection 
(f) or the regulations issued to implement that subsection 
shall be liable for the greater of—
‘‘(1) a civil penalty not to exceed $10,000; or 
‘‘(2) the general record keeping penalty that ap-
plies under the customs laws of the United States.’’. 
SEC. 208. ENFORCEMENT OF TEXTILE AND APPAREL RULES 
OF ORIGIN. 
(a) ACTION DURING VERIFICATION.—If the Sec-
retary of the Treasury requests the Government of Chile 
to conduct a verification pursuant to article 3.21 of the 
Agreement for purposes of determining that—
(1) an exporter or producer in Chile is com-
plying with applicable customs laws, regulations, and
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procedures regarding trade in textile and apparel 
goods, or 
(2) claims that textile or apparel goods exported 
or produced by such exporter or producer—
(A) qualify as originating goods under sec-
tion 202 of this Act, or 
(B) are goods of Chile, 
are accurate, 
the President may direct the Secretary to take appropriate 
action described in subsection (b) while the verification is 
being conducted. 
(b) APPROPRIATE ACTION DESCRIBED.—Appropriate 
action under subsection (a) includes—
(1) suspension of liquidation of entries of textile 
and apparel goods exported or produced by the per-
son that is the subject of the verification, in a case 
in which the request for verification was based on a 
reasonable suspicion of unlawful activity related to 
such goods; and 
(2) publication of the name of the person that 
is the subject of the verification. 
(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) is insuffi-
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(2) by striking ‘‘the last proviso to section 
3(a)’’ and inserting ‘‘the proviso preceding the last 
proviso to section 3(a)’’.
SEC. 210. 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, 
and sections 203 and 204; 
(2) amendments made by the sections referred 
to in paragraph (1); and
(3) proclamations issued under section 202(o). 
TITLE III—RELIEF FROM 
IMPORTS 
SEC. 301. DEFINITIONS. 
In this title: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the United States International Trade Com-
mission. 
(2) CHILEAN ARTICLE.—The term ‘‘Chilean ar-
ticle’’ means an article that qualifies as an origi-
nating good under section 202(a) of this Act. 
(3) CHILEAN TEXTILE OR APPAREL ARTICLE.—
The term ‘‘Chilean textile or apparel article’’ means 
an article—
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(A) that is listed in the Annex to the 
Agreement on Textiles and Clothing referred to 
in section 101(d)(4) of the Uruguay Round 
Agreements Act (19 U.S.C. 3511(d)(4)); and 
(B) that is a Chilean article. 
Subtitle A—Relief From Imports 
Benefiting From the Agreement 
SEC. 311. COMMENCING OF ACTION FOR RELIEF. 
(a) FILING OF PETITION.—A petition requesting ac-
tion under this subtitle for the purpose of adjusting to 
the obligations of the United States under the Agreement 
may be filed with the Commission by an entity, including 
a trade association, firm, certified or recognized union, or 
group of workers, that is representative of an industry. 
The Commission shall transmit a copy of any petition filed 
under this subsection to the United States Trade Rep-
resentative. 
(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 Chilean article is being imported into the 
United States in such increased quantities, in absolute 
terms or relative to domestic production, and under such
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conditions that imports of the Chilean 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 (i). 
(d) ARTICLES EXEMPT FROM INVESTIGATION.—No 
investigation may be initiated under this section with re-
spect to any Chilean article if, after the date that the 
Agreement enters into force, import relief has been pro-
vided with respect to that Chilean article under this sub-
title, or if, at the time the petition is filed, the article is 
subject to import relief under chapter 1 of title II of the 
Trade Act of 1974. 
SEC. 312. COMMISSION ACTION ON PETITION. 
(a) DETERMINATION.—Not later than 120 days after 
the date on which an investigation is initiated under sec-
tion 311(b) with respect to a petition, the Commission 
shall make the determination required under that section.
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(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.—If the determination 
made by the Commission under subsection (a) with respect 
to imports of an article is affirmative, or if the President 
may consider a determination of the Commission to be an 
affirmative determination as provided for under paragraph 
(1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
1330(d)), the Commission shall find, and recommend to 
the President in the report required under subsection (d), 
the amount of import relief that is necessary to remedy 
or prevent the injury found by the Commission in the de-
termination and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competi-
tion. The import relief recommended by the Commission 
under this subsection shall be limited to the relief de-
scribed in section 313(c). Only those members of the Com-
mission who voted in the affirmative under subsection (a) 
are eligible to vote on the proposed action to remedy or
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prevent the injury found by the Commission. Members of 
the Commission who did not vote in the affirmative may 
submit, in the report required under subsection (d), sepa-
rate 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-
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 
and recommendation referred to in paragraphs (1) 
and (2). 
(e) PUBLIC NOTICE.—Upon submitting a report to 
the President under subsection (d), the Commission shall 
promptly make public such report (with the exception of 
information which the Commission determines to be con-
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fidential) and shall cause a summary thereof to be pub-
lished 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 the 
report of the Commission in which the Commission’s de-
termination under section 312(a) is affirmative, or which 
contains a determination under section 312(a) that the 
President considers to be affirmative under paragraph (1) 
of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
1330(d)(1)), the President, subject to subsection (b), shall 
provide relief from imports of the article that is the subject 
of such determination to the extent that the President 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.—The import relief that the 
President is authorized to provide under this section 
with respect to imports of an article is as follows:
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(A) The suspension of any further reduc-
tion provided for under Annex 3.3 of the Agree-
ment in the duty imposed on such article. 
(B) An increase in the rate of duty im-
posed on such article to a level that does not 
exceed the lesser of—
(i) the column 1 general rate of duty 
imposed under the HTS on like articles at 
the time the import relief is provided; or 
(ii) the column 1 general rate of duty 
imposed under the HTS on like articles on 
the day before the date on which the 
Agreement enters into force. 
(2) PROGRESSIVE LIBERALIZATION.—If the 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 8.2(2) 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), 
the import relief that the President is authorized to 
provide under this section, including any extensions 
thereof, may not, in the aggregate, exceed 3 years. 
(2) EXTENSION.—
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evidence that the industry is making a positive 
adjustment to import competition. 
(ii) The Commission shall publish notice of 
the commencement of any proceeding under 
this subparagraph in the Federal Register and 
shall, within a reasonable time thereafter, hold 
a public hearing at which the Commission shall 
afford interested parties and consumers an op-
portunity to be present, to present evidence, 
and to respond to the presentations of other 
parties and consumers, and otherwise to be 
heard. 
(iii) The Commission shall transmit to the 
President a report on its investigation and de-
termination under this subparagraph not later 
than 60 days before the action under subsection 
(a) is to terminate, unless the President speci-
fies a different date. 
(e) RATE AFTER TERMINATION
OF IMPORT RE-
LIEF.—When import relief under this section is termi-
nated with respect to an article—
(1) the rate of duty on that article after such 
termination and on or before December 31 of the 
year in which such termination occurs shall be the 
rate that, according to the Schedule of the United
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States in Annex 3.3 of the Agreement for the staged 
elimination of the tariff, would have been in effect 
1 year after the provision of relief under subsection 
(a); and 
(2) the rate of duty for that article after De-
cember 31 of the year in which termination occurs 
shall be, at the discretion of the President, either—
(A) the applicable rate of duty for that ar-
ticle set out in the Schedule of the United 
States in Annex 3.3 of the Agreement; or 
(B) the rate of duty resulting from the 
elimination of the tariff in equal annual stages 
ending on the date set out in the United States 
Schedule in Annex 3.3 of the Agreement for the 
elimination of the tariff. 
(f) ARTICLES EXEMPT FROM RELIEF.—No import 
relief may be provided under this section on any article 
subject to import relief under chapter 1 of title II of the 
Trade Act of 1974.
SEC. 314. TERMINATION OF RELIEF AUTHORITY. 
(a) GENERAL RULE.—No import relief may be pro-
vided under this subtitle after the date that is 10 years 
after the date on which the Agreement enters into force. 
(b) EXCEPTION.—If an article for which relief is pro-
vided under this subtitle is an article for which the period
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for tariff elimination, set out in the Schedule of the United 
States to Annex 3.3 of the Agreement, is 12 years, no 
relief under this subtitle may be provided for that article 
after the date that is 12 years after the date on which 
the Agreement enters into force. 
SEC. 315. COMPENSATION AUTHORITY. 
For purposes of section 123 of the Trade Act of 1974 
(19 U.S.C. 2133), any import relief provided by the Presi-
dent under section 313 shall be treated as action taken 
under chapter 1 of title II of such Act. 
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 
Section 202(a)(8) of the Trade Act of 1974 (19 
U.S.C. 2252(a)(8)) is amended in the first sentence—
(1) by striking ‘‘and’’; and 
(2) by inserting before the period at the end ‘‘, 
and title III of the United States-Chile Free Trade 
Agreement Implementation Act’’. 
Subtitle B—Textile and Apparel 
Safeguard Measures 
SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 
(a) IN GENERAL.—A request under this subtitle for 
the purpose of adjusting to the obligations of the United 
States under the Agreement may be filed with the Presi-
dent by an interested party. Upon the filing of a request, 
the President shall review the request to determine, from
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information presented in the request, whether to com-
mence consideration of the request. 
(b) PUBLICATION OF REQUEST.—If the President de-
termines that the request under subsection (a) provides 
the information necessary for the request to be considered, 
the President shall cause to be published in the Federal 
Register a notice of commencement of consideration of the 
request, and notice seeking public comments regarding the 
request. The notice shall include the request and the dates 
by which comments and rebuttals must be received. 
SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 
(a) DETERMINATION.—
(1) IN GENERAL.—If a positive determination is 
made under section 321(b), the President shall de-
termine whether, as a result of the elimination of a 
duty under the Agreement, a Chilean textile or ap-
parel article is being imported into the United States 
in such increased quantities, in absolute terms or 
relative to the domestic market for that article, and 
under such conditions as to cause serious damage, 
or actual threat thereof, to a domestic industry pro-
ducing an article that is like, or directly competitive 
with, the imported article. 
(2) SERIOUS
DAMAGE.—In making a deter-
mination under paragraph (1), the President—
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(A) shall examine the effect of increased 
imports on the domestic industry, as reflected 
in changes in such relevant economic factors as 
output, productivity, utilization of capacity, in-
ventories, market share, exports, wages, em-
ployment, domestic prices, profits, and invest-
ment, none of which is necessarily decisive; and 
(B) shall not consider changes in tech-
nology or consumer preference as factors sup-
porting a determination of serious damage or 
actual threat thereof. 
(b) PROVISION OF RELIEF.—
(1) IN
GENERAL.—If a determination under 
subsection (a) is affirmative, the President may pro-
vide relief from imports of the article that is the 
subject of such determination, as provided in para-
graph (2), to the extent that the President deter-
mines necessary to remedy or prevent the serious 
damage and to facilitate adjustment by the domestic 
industry. 
(2) NATURE OF RELIEF.—The relief that the 
President is authorized to provide under this sub-
section with respect to imports of an article is an in-
crease in the rate of duty imposed on the article to 
a level that does not exceed the lesser of—
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(A) the column 1 general rate of duty im-
posed under the HTS on like articles at the 
time the import relief is provided; or 
(B) the column 1 general rate of duty im-
posed under the HTS on like articles on the 
day before the date on which the Agreement en-
ters into force. 
SEC. 323. PERIOD OF RELIEF. 
(a) IN GENERAL.—The import relief that the Presi-
dent is authorized to provide under section 322, including 
any extensions thereof, may not, in the aggregate, exceed 
3 years. 
(b) EXTENSION.—If the initial period for any import 
relief provided under this section is less than 3 years, the 
President may extend the effective period of any import 
relief provided under this section, subject to the limitation 
set forth in subsection (a), if the President determines 
that—
(1) the import relief continues to be necessary 
to remedy or prevent serious damage and to facili-
tate adjustment; and 
(2) there is evidence that the industry is mak-
ing a positive adjustment to import competition.