HR 3688 PCS 
Sec. 101. Approval and entry into force of the Agreement. 
Sec. 102. Relationship of the Agreement to United States and State law. 
Sec. 103. Implementing actions in anticipation of entry into force and initial 
regulations. 
Sec. 104. Consultation and layover provisions for, and effective date of, pro-
claimed actions. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Arbitration of claims. 
Sec. 107. Effective dates; effect of termination. 
TITLE II—CUSTOMS PROVISIONS 
Sec. 201. Tariff modifications. 
Sec. 202. Additional duties on certain agricultural goods. 
Sec. 203. Rules of origin. 
Sec. 204. Customs user fees. 
Sec. 205. Disclosure of incorrect information; false certifications of origin; de-
nial of preferential tariff treatment. 
Sec. 206. Reliquidation of entries. 
Sec. 207. Recordkeeping requirements. 
Sec. 208. Enforcement relating to trade in textile or apparel goods. 
Sec. 209. Regulations. 
TITLE III—RELIEF FROM IMPORTS 
Sec. 301. Definitions. 
Subtitle A—Relief From Imports Benefiting From the Agreement 
Sec. 311. Commencing of action for relief. 
Sec. 312. Commission action on petition. 
Sec. 313. Provision of relief. 
Sec. 314. Termination of relief authority. 
Sec. 315. Compensation authority. 
Sec. 316. Confidential business information. 
Subtitle B—Textile and Apparel Safeguard Measures 
Sec. 321. Commencement of action for relief. 
Sec. 322. Determination and provision of relief. 
Sec. 323. Period of relief. 
Sec. 324. Articles exempt from relief. 
Sec. 325. Rate after termination of import relief. 
Sec. 326. Termination of relief authority. 
Sec. 327. Compensation authority. 
Sec. 328. Confidential business information. 
Subtitle C—Cases Under Title II of the Trade Act of 1974 
Sec. 331. Findings and action on goods of Peru. 
TITLE IV—PROCUREMENT 
Sec. 401. Eligible products. 
TITLE V—TRADE IN TIMBER PRODUCTS OF PERU 
Sec. 501. Enforcement relating to trade in timber products of Peru. 
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Sec. 502. Report to Congress. 
TITLE VI—OFFSETS 
Sec. 601. Customs user fees. 
Sec. 602. Time for payment of corporate estimated taxes. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to approve and implement the free trade 
agreement between the United States and Peru en-
tered into under the authority of section 2103(b) of 
the Bipartisan Trade Promotion Authority Act of 
2002 (19 U.S.C. 3803(b)); 
(2) to strengthen and develop economic rela-
tions between the United States and Peru for their 
mutual benefit; 
(3) to establish free trade between the United 
States and Peru through the reduction and elimi-
nation 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. 3. DEFINITIONS. 
In this Act: 
(1) 
AGREEMENT.—The 
term 
‘‘Agreement’’ 
means the United States-Peru Trade Promotion 
Agreement approved by Congress under section 
101(a)(1). 
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(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 
Round Agreements Act (19 U.S.C. 3511(d)(4)), 
other than a good listed in Annex 3–C of the Agree-
ment. 
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), Congress approves— 
(1) the United States-Peru Trade Promotion 
Agreement entered into on April 12, 2006, with the 
Government of Peru, as amended on June 24 and 
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June 25, 2007, respectively, by the United States 
and Peru, and submitted to Congress on September 
27, 2007; and 
(2) the statement of administrative action pro-
posed to implement the Agreement that was sub-
mitted to Congress on September 27, 2007. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE 
AGREEMENT.—At such time as the President determines 
that Peru has taken measures necessary to comply with 
those provisions of the Agreement that are to take effect 
on the date on which the Agreement enters into force, the 
President is authorized to exchange notes with the Gov-
ernment of Peru providing for the entry into force, on or 
after January 1, 2008, of the Agreement with respect to 
the United States. 
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 
STATES AND STATE LAW. 
(a) RELATIONSHIP
OF AGREEMENT
TO UNITED 
STATES LAW.— 
(1) UNITED STATES LAW TO PREVAIL IN 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. 
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(2) CONSTRUCTION.—Nothing in this Act shall 
be construed— 
(A) to amend or modify any law of the 
United States, or 
(B) to limit any authority conferred under 
any law of the United States, 
unless specifically provided for in this Act. 
(b) RELATIONSHIP
OF
AGREEMENT
TO
STATE 
LAW.— 
(1) LEGAL CHALLENGE.—No State law, or the 
application thereof, may be declared invalid as to 
any person or circumstance on the ground that the 
provision or application is inconsistent with the 
Agreement, except in an action brought by the 
United States for the purpose of declaring such law 
or application invalid. 
(2) DEFINITION OF STATE LAW.—For purposes 
of this subsection, the term ‘‘State law’’ includes— 
(A) any law of a political subdivision of a 
State; and 
(B) any State law regulating or taxing the 
business of insurance. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRI-
VATE REMEDIES.—No person other than the United 
States— 
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(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. 
SEC. 103. 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 Act, or amendment made by this Act, that takes 
effect on the date on which the Agreement enters 
into force is appropriately implemented on such 
date, but no such proclamation or regulation may 
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initial regulations to carry out that action shall, to the 
maximum extent feasible, be issued within 1 year after 
such effective date. 
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 
AND EFFECTIVE DATE OF, PROCLAIMED AC-
TIONS. 
If a provision of this Act provides that the implemen-
tation of an action by the President by proclamation is 
subject to the consultation and layover requirements of 
this section, such action may be proclaimed only if— 
(1) the President has obtained advice regarding 
the proposed action from— 
(A) the appropriate advisory committees 
established under section 135 of the Trade Act 
of 1974 (19 U.S.C. 2155); and 
(B) the Commission; 
(2) the President has submitted to the 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); 
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(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). 
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 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 2007 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. 
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SEC. 106. 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. 
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 
(a) EFFECTIVE DATES.—Except as provided in sub-
section (b), this Act and the amendments made by this 
Act take effect on the date on which 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 terminates, this Act (other 
than this subsection) and the amendments made by this 
Act shall cease to have effect. 
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 2.3, 2.5, 2.6, 
3.3.13, and Annex 2.3 of the Agreement. 
(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 Peru as a beneficiary developing 
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 104, the 
President may proclaim— 
(1) such modifications or continuation of any 
duty, 
(2) such modifications as the United States 
may agree to with Peru regarding the staging of any 
duty treatment set forth in Annex 2.3 of the Agree-
ment, 
(3) such continuation of duty-free or excise 
treatment, or 
(4) such additional duties, 
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as the President determines to be necessary or appropriate 
to maintain the general level of reciprocal and mutually 
advantageous concessions with respect to Peru provided 
for by the Agreement. 
(c) 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 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. 202. 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— 
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(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 
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 203, except that operations per-
formed in or material obtained from the United 
States shall be considered as if the operations 
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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. 
(b) ADDITIONAL DUTIES ON SAFEGUARD GOODS.— 
(1) IN GENERAL.—In addition to any duty pro-
claimed under subsection (a) or (b) of section 201, 
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 130 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— 
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(A) in years 1 through 12, an amount 
equal to 100 percent of the excess of the appli-
cable NTR (MFN) rate of duty over the sched-
ule rate of duty; and 
(B) in years 13 through 16, an amount 
equal to 50 percent of the excess of the applica-
ble 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 Peru in writing of such action and shall pro-
vide to that Government data supporting the assess-
ment 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) subtitle A of title III of this Act; 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. 203. 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 
Peru or the United States). 
(b) ORIGINATING GOODS.—For purposes of this Act 
and for purposes of implementing the preferential tariff 
treatment provided for under the Agreement, except as 
otherwise provided in this section, a good is an originating 
good if— 
(1) the good is a good wholly obtained or pro-
duced entirely in the territory of Peru, the United 
States, or both; 
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(2) the good— 
(A) is produced entirely in the territory of 
Peru, 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 Peru, the United States, or both, exclusively 
from materials described in paragraph (1) or (2). 
(c) REGIONAL VALUE-CONTENT.— 
(1) IN GENERAL.—For purposes of subsection 
(b)(2), the regional value-content of a good referred 
to in Annex 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) RVC.—The term ‘‘RVC’’ means 
the regional value-content of the good, ex-
pressed as a percentage. 
(ii) AV.—The term ‘‘AV’’ means the 
adjusted value of the good. 
(iii) VNM.—The term ‘‘VNM’’ means 
the value of nonoriginating materials 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: 
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VOM 
RVC = ———— × 100 
AV 
(B) DEFINITIONS.—In subparagraph (A): 
(i) RVC.—The term ‘‘RVC’’ means 
the regional value-content of the good, ex-
pressed as a percentage. 
(ii) AV.—The term ‘‘AV’’ means the 
adjusted value of the good. 
(iii) VOM.—The term ‘‘VOM’’ means 
the value of originating materials 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 
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