(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.
(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
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.—
(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
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):
(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.—
(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—
(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
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-
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;
(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
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.
(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-
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—
(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;
(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.
(5) HARMONIZED
SYSTEM.—The term ‘‘Har-
monized System’’ means the Harmonized Com-
modity Description and Coding System.
(6) INDIRECT MATERIAL.—The term ‘‘indirect
material’’ means a good used in the production, test-
ing, or inspection of a good but not physically incor-
porated into the good, or a good used in the mainte-
nance of buildings or the operation of equipment as-
sociated with the production of a good, including—
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the
maintenance of equipment or buildings;
(D) lubricants, greases, compounding ma-
terials, and other materials used in production
or used to operate equipment or buildings;
(E) gloves, glasses, footwear, clothing,
safety equipment, and supplies;
(F) equipment, devices, and supplies used
for testing or inspecting the good;
(G) catalysts and solvents; and
(H) any other goods that are not incor-
porated into the good but the use of which in
the production of the good can reasonably be
demonstrated to be a part of that production.
(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.
(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
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),
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
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;
(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;
(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;
‘‘(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-
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
‘‘(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
‘‘(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-
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.’’.
(3) DRAWBACK.—Section 313 of the Tariff Act
of 1930 (19 U.S.C. 1313) is amended—
(A) in paragraph (4) of subsection (j)—
(i) by striking ‘‘(4)’’ and inserting
‘‘(4)(A)’’; and
(ii) by adding at the end the following
new subparagraph:
‘‘(B) Beginning on January 1, 2015, the expor-
tation to Chile of merchandise that is fungible with
and substituted for imported merchandise, other
than merchandise described in paragraphs (1)
through (5) of section 203(a) of the United States-
Chile Free Trade Agreement Implementation Act,
shall not constitute an exportation for purposes of
paragraph (2). The preceding sentence shall not be
construed to permit the substitution of unused draw-
back under paragraph (2) of this subsection with re-
spect to merchandise described in paragraph (2) of
section 203(a) of the United States-Chile Free
Trade Agreement Implementation Act.’’;
(B) in subsection (n)—
(i) by striking ‘‘(n)’’ and inserting the
following:
‘‘(n) REFUNDS, WAIVERS, OR REDUCTIONS UNDER
CERTAIN FREE TRADE AGREEMENTS.—’’;
(ii) in paragraph (1)—
(I) by striking ‘‘; and’’ at the end
of subparagraph (B);
(II) by striking the period at the
end of subparagraph (C) and insert-
ing ‘‘; and’’; and
(III) by adding at the end the
following new subparagraph:
‘‘(D) the term ‘good subject to Chile FTA
drawback’ has the meaning given that term in sec-
tion 203(a) of the United States-Chile Free Trade
Agreement Implementation Act.’’; and
(iii) by adding the following new para-
graph at the end:
‘‘(4)(A) For purposes of subsections (a), (b), (f), (h),
(j)(2), (p), and (q), if an article that is exported to Chile
is a good subject to Chile FTA drawback, no customs du-
ties on the good may be refunded, waived, or reduced, ex-
cept as provided in subparagraph (B).
‘‘(B) The customs duties referred to in subparagraph
(A) may be refunded, waived, or reduced by—
‘‘(i) 100 percent during the 8-year period begin-
ning on January 1, 2004;
‘‘(ii) 75 percent during the 1-year period begin-
ning on January 1, 2012;
‘‘(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—
‘‘(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
‘‘(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.’’.
(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
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—
(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
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.’’.
(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—
(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:
‘‘(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,
including—
‘‘(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
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
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-
cient to make a determination under subsection (a), the
President may direct the Secretary to take appropriate ac-
tion described in subsection (d) until such time as the Sec-
retary receives information sufficient to make a deter-
mination under subsection (a) or until such earlier date
as the President may direct.
(d) APPROPRIATE
ACTION
DESCRIBED.—Appro-
priate action under subsection (c) includes—
(1) publication of the identity of the person
that is the subject of the verification;
(2) denial of preferential tariff treatment under
the Agreement to any textile or apparel goods ex-
ported or produced by the person that is the subject
of the verification; and
(3) denial of entry into the United States of
any textile or apparel goods exported or produced by
the person that is the subject of the verification.
SEC. 209. CONFORMING AMENDMENTS.
Section 508(b)(2)(B)(i)(I) of the Tariff Act of 1930
(19 U.S.C. 1508(b)(2)(B)(i)(I)) is amended—
(1) by striking ‘‘the last paragraph of section
311’’ and inserting ‘‘the eleventh paragraph of sec-
tion 311’’; and
(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—
(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
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.
(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
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-
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:
(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.—
(A) IN GENERAL.—If the initial period for
any import relief provided under this section is
less than 3 years, the President, after receiving
an affirmative determination from the Commis-
sion under subparagraph (B), may extend the
effective period of any import relief provided
under this section, subject to the limitation
under paragraph (1), if the President deter-
mines that—
(i) the import relief continues to be
necessary to remedy or prevent serious in-
jury and to facilitate adjustment; and
(ii) there is evidence that the industry
is making a positive adjustment to import
competition.
(B) ACTION BY COMMISSION.—(i) Upon a
petition on behalf of the industry concerned,
filed with the Commission not earlier than the
date which is 9 months, and not later than the
date which is 6 months, before the date on
which any action taken under subsection (a) is
to terminate, the Commission shall conduct an
investigation to determine whether action under
this section continues to be necessary to remedy
or prevent serious injury and whether there is
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
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
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
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—
(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—
(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.
SEC. 324. ARTICLES EXEMPT FROM RELIEF.
The President may not provide import relief under
this subtitle with respect to any article if import relief pre-
viously has been provided under this subtitle with respect
to that article.
SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
When import relief under this subtitle is terminated
with respect to an article, the rate of duty on that article
shall be duty-free.
SEC. 326. TERMINATION OF RELIEF AUTHORITY.
No import relief may be provided under this subtitle
with respect to any article after the date that is 8 years
after the date on which duties on the article are eliminated
pursuant to the Agreement.
SEC. 327. 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 this subtitle shall be treated as action taken
under chapter 1 of title II of that Act.
SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.
The President may not release information which the
President considers to be confidential business informa-
tion unless the party submitting the confidential business
information had notice, at the time of submission, that
such information would be released by the President, or
such party subsequently consents to the release of the in-
formation. To the extent business confidential information
is provided, a nonconfidential version of the information
shall also be provided, in which the business confidential
information is summarized or, if necessary, deleted.
TITLE IV—TEMPORARY ENTRY
OF BUSINESS PERSONS
SEC. 401. NONIMMIGRANT TRADERS AND INVESTORS.
Upon a basis of reciprocity secured by the Agree-
ment, an alien who is a national of Chile (and any spouse
or child (as defined in section 101(b)(1) of the Immigra-
tion and Nationality Act (8 U.S.C. 1101(b)(1)) of such
alien, if accompanying or following to join the alien) may,
if otherwise eligible for a visa and if otherwise admissible
into the United States under the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.), be considered to be clas-
sifiable as a nonimmigrant under section 101(a)(15)(E)
of such Act (8 U.S.C. 1101(a)(15)(E)) if entering solely
for a purpose specified in clause (i) or (ii) of such section
101(a)(15)(E). For purposes of this section, the term ‘‘na-
tional’’ has the meaning given such term in article 14.9
of the Agreement.
SEC. 402. NONIMMIGRANT PROFESSIONALS; LABOR ATTES-
TATIONS.
(a) NONIMMIGRANT PROFESSIONALS.—
(1) DEFINITIONS.—Section 101(a)(15)(H)(i)(b)
of the Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(i)(b)) 
is 
amended 
by 
striking
‘‘212(n)(1), or (c)’’ and inserting ‘‘212(n)(1), or
(b1) who is entitled to enter the United States under
and in pursuance of the provisions of an agreement
listed in section 214(g)(8)(A), who is engaged in a
specialty occupation described in section 214(i)(3),
and with respect to whom the Secretary of Labor de-
termines and certifies to the Secretary of Homeland
Security and the Secretary of State that the intend-
ing employer has filed with the Secretary of Labor
an attestation under section 212(t)(1), or (c)’’.
(2) ADMISSION
OF
NONIMMIGRANTS.—Section
214 of the Immigration and Nationality Act (8
U.S.C. 1184) is amended—
(A) in subsection (i)—
(i) in paragraph (1), by striking ‘‘For
purposes’’ and inserting ‘‘Except as pro-
vided in paragraph (3), for purposes’’; and
(ii) by adding at the end the fol-
lowing:
‘‘(3) For purposes of section 101(a)(15)(H)(i)(b1),
the term ‘specialty occupation’ means an occupation that
requires—
‘‘(A) theoretical and practical application of a
body of specialized knowledge; and
‘‘(B) attainment of a bachelor’s or higher de-
gree in the specific specialty (or its equivalent) as a
minimum for entry into the occupation in the United
States.’’; and
(B) in subsection (g), by adding at the end
the following:
‘‘(8)(A) The agreement referred to in section
101(a)(15)(H)(i)(b1) is the United States-Chile Free
Trade Agreement.
‘‘(B)(i) The Secretary of Homeland Security shall es-
tablish annual numerical limitations on approvals of initial
applications by aliens for admission under section
101(a)(15)(H)(i)(b1).
‘‘(ii) The annual numerical limitations described in
clause (i) shall not exceed 1,400 for nationals of Chile for
any fiscal year. For purposes of this clause, the term ‘na-
tional’ has the meaning given such term in article 14.9
of the United States-Chile Free Trade Agreement.
‘‘(iii) The annual numerical limitations described in
clause (i) shall only apply to principal aliens and not to
the spouses or children of such aliens.
‘‘(iv) The annual numerical limitation described in
paragraph (1)(A) is reduced by the amount of the annual
numerical limitations established under clause (i). How-
ever, if a numerical limitation established under clause (i)
has not been exhausted at the end of a given fiscal year,
the Secretary of Homeland Security shall adjust upwards
the numerical limitation in paragraph (1)(A) for that fis-
cal year by the amount remaining in the numerical limita-
tion 
under 
clause 
(i). 
Visas 
under 
section
101(a)(15)(H)(i)(b) may be issued pursuant to such ad-
justment within the first 45 days of the next fiscal year
to aliens who had applied for such visas during the fiscal
year for which the adjustment was made.
‘‘(C) The period of authorized admission as a non-
immigrant under section 101(a)(15)(H)(i)(b1) shall be 1
year, and may be extended, but only in 1-year increments.
After every second extension, the next following extension
shall not be granted unless the Secretary of Labor had
determined and certified to the Secretary of Homeland Se-
curity and the Secretary of State that the intending em-
ployer has filed with the Secretary of Labor an attestation
under section 212(t)(1) for the purpose of permitting the
nonimmigrant to obtain such extension.
‘‘(D) The numerical limitation described in para-
graph (1)(A) for a fiscal year shall be reduced by one for
each alien granted an extension under subparagraph (C)
during such year who has obtained 5 or more consecutive
prior extensions.’’.
(b) LABOR ATTESTATIONS.—Section 212 of the Im-
migration and Nationality Act (8 U.S.C. 1182) is
amended—
(1) by redesignating the subsection (p) added
by section 1505(f) of Public Law 106–386 (114
Stat. 1526) as subsection (s); and
(2) by adding at the end the following:
‘‘(t)(1) No alien may be admitted or provided status
as a nonimmigrant under section 101(a)(15)(H)(i)(b1) in
an occupational classification unless the employer has filed
with the Secretary of Labor an attestation stating the fol-
lowing:
‘‘(A) The employer—
‘‘(i) is offering and will offer during the
period of authorized employment to aliens ad-
mitted 
or 
provided 
status 
under 
section
101(a)(15)(H)(i)(b1) wages that are at least—
‘‘(I) the actual wage level paid by the
employer to all other individuals with simi-
lar experience and qualifications for the
specific employment in question; or
‘‘(II) the prevailing wage level for the
occupational classification in the area of
employment,
whichever is greater, based on the best informa-
tion available as of the time of filing the attes-
tation; and
‘‘(ii) will provide working conditions for
such a nonimmigrant that will not adversely af-
fect the working conditions of workers similarly
employed.
‘‘(B) There is not a strike or lockout in the
course of a labor dispute in the occupational classi-
fication at the place of employment.
‘‘(C) The employer, at the time of filing the
attestation—
‘‘(i) has provided notice of the filing under
this paragraph to the bargaining representative
(if any) of the employer’s employees in the oc-
cupational classification and area for which
aliens are sought; or
‘‘(ii) if there is no such bargaining rep-
resentative, has provided notice of filing in the
occupational classification through such meth-
ods as physical posting in conspicuous locations
at the place of employment or electronic notifi-
cation to employees in the occupational classi-
fication for which nonimmigrants under section
101(a)(15)(H)(i)(b1) are sought.
‘‘(D) A specification of the number of workers
sought, the occupational classification in which the
workers will be employed, and wage rate and condi-
tions under which they will be employed.
‘‘(2)(A) The employer shall make available for public
examination, within one working day after the date on
which an attestation under this subsection is filed, at the
employer’s principal place of business or worksite, a copy
of each such attestation (and such accompanying docu-
ments as are necessary).
‘‘(B)(i) The Secretary of Labor shall compile, on a
current basis, a list (by employer and by occupational clas-
sification) of the attestations filed under this subsection.
Such list shall include, with respect to each attestation,
the wage rate, number of aliens sought, period of intended
employment, and date of need.
‘‘(ii) The Secretary of Labor shall make such list
available for public examination in Washington, D.C.
‘‘(C) The Secretary of Labor shall review an attesta-
tion filed under this subsection only for completeness and
obvious inaccuracies. Unless the Secretary of Labor finds
that an attestation is incomplete or obviously inaccurate,
the Secretary of Labor shall provide the certification de-
scribed in section 101(a)(15)(H)(i)(b1) within 7 days of
the date of the filing of the attestation.
‘‘(3)(A) The Secretary of Labor shall establish a
process for the receipt, investigation, and disposition of
complaints respecting the failure of an employer to meet
a condition specified in an attestation submitted under
this subsection or misrepresentation by the employer of
material facts in such an attestation. Complaints may be
filed by any aggrieved person or organization (including
bargaining representatives). No investigation or hearing
shall be conducted on a complaint concerning such a fail-
ure or misrepresentation unless the complaint was filed
not later than 12 months after the date of the failure or
misrepresentation, respectively. The Secretary of Labor
shall conduct an investigation under this paragraph if
there is reasonable cause to believe that such a failure or
misrepresentation has occurred.
‘‘(B) Under the process described in subparagraph
(A), the Secretary of Labor shall provide, within 30 days
after the date a complaint is filed, for a determination as
to whether or not a reasonable basis exists to make a find-
ing described in subparagraph (C). If the Secretary of
Labor determines that such a reasonable basis exists, the
Secretary of Labor shall provide for notice of such deter-
mination to the interested parties and an opportunity for
a hearing on the complaint, in accordance with section 556
of title 5, United States Code, within 60 days after the
date of the determination. If such a hearing is requested,
the Secretary of Labor shall make a finding concerning
the matter by not later than 60 days after the date of
the hearing. In the case of similar complaints respecting
the same applicant, the Secretary of Labor may consoli-
date the hearings under this subparagraph on such com-
plaints.
‘‘(C)(i) If the Secretary of Labor finds, after notice
and opportunity for a hearing, a failure to meet a condi-
tion of paragraph (1)(B), a substantial failure to meet a
condition of paragraph (1)(C) or (1)(D), or a misrepresen-
tation of material fact in an attestation—
‘‘(I) the Secretary of Labor shall notify the Sec-
retary of State and the Secretary of Homeland Secu-
rity of such finding and may, in addition, impose
such other administrative remedies (including civil
monetary penalties in an amount not to exceed
$1,000 per violation) as the Secretary of Labor de-
termines to be appropriate; and
‘‘(II) the Secretary of State or the Secretary of
Homeland Security, as appropriate, shall not ap-
prove petitions or applications filed with respect to
States worker employed by the employer within the period
beginning 90 days before and ending 90 days after the
date of filing of any visa petition or application supported
by the attestation—
‘‘(I) the Secretary of Labor shall notify the Sec-
retary of State and the Secretary of Homeland Secu-
rity of such finding and may, in addition, impose
such other administrative remedies (including civil
monetary penalties in an amount not to exceed
$35,000 per violation) as the Secretary of Labor de-
termines to be appropriate; and
‘‘(II) the Secretary of State or the Secretary of
Homeland Security, as appropriate, shall not ap-
prove petitions or applications filed with respect to
that employer under section 204, 214(c), or
101(a)(15)(H)(i)(b1) during a period of at least 3
years for aliens to be employed by the employer.
‘‘(iv) It is a violation of this clause for an employer
who has filed an attestation under this subsection to in-
timidate, threaten, restrain, coerce, blacklist, discharge, or
in any other manner discriminate against an employee
(which term, for purposes of this clause, includes a former
employee and an applicant for employment) because the
employee has disclosed information to the employer, or to
any other person, that the employee reasonably believes
evidences a violation of this subsection, or any rule or reg-
ulation pertaining to this subsection, or because the em-
ployee cooperates or seeks to cooperate in an investigation
or other proceeding concerning the employer’s compliance
with the requirements of this subsection or any rule or
regulation pertaining to this subsection.
‘‘(v) The Secretary of Labor and the Secretary of
Homeland Security shall devise a process under which a
nonimmigrant under section 101(a)(15)(H)(i)(b1) who
files a complaint regarding a violation of clause (iv) and
is otherwise eligible to remain and work in the United
States may be allowed to seek other appropriate employ-
ment in the United States for a period not to exceed the
maximum period of stay authorized for such non-
immigrant classification.
‘‘(vi)(I) It is a violation of this clause for an employer
who has filed an attestation under this subsection to re-
quire a nonimmigrant under section 101(a)(15)(H)(i)(b1)
to pay a penalty for ceasing employment with the employer
prior to a date agreed to by the nonimmigrant and the
employer. The Secretary of Labor shall determine whether
a required payment is a penalty (and not liquidated dam-
ages) pursuant to relevant State law.
‘‘(II) If the Secretary of Labor finds, after notice and
opportunity for a hearing, that an employer has committed
a violation of this clause, the Secretary of Labor may im-
pose a civil monetary penalty of $1,000 for each such vio-
lation and issue an administrative order requiring the re-
turn to the nonimmigrant of any amount paid in violation
of this clause, or, if the nonimmigrant cannot be located,
requiring payment of any such amount to the general fund
of the Treasury.
‘‘(vii)(I) It is a failure to meet a condition of para-
graph (1)(A) for an employer who has filed an attestation
under this subsection and who places a nonimmigrant
under section 101(a)(15)(H)(i)(b1) designated as a full-
time employee in the attestation, after the nonimmigrant
has entered into employment with the employer, in non-
productive status due to a decision by the employer (based
on factors such as lack of work), or due to the non-
immigrant’s lack of a permit or license, to fail to pay the
nonimmigrant full-time wages in accordance with para-
graph (1)(A) for all such nonproductive time.
‘‘(II) It is a failure to meet a condition of paragraph
(1)(A) for an employer who has filed an attestation under
this subsection and who places a nonimmigrant under sec-
tion 101(a)(15)(H)(i)(b1) designated as a part-time em-
ployee in the attestation, after the nonimmigrant has en-
tered into employment with the employer, in nonproduc-
tive status under circumstances described in subclause (I),
to fail to pay such a nonimmigrant for such hours as are
designated on the attestation consistent with the rate of
pay identified on the attestation.
‘‘(III) In the case of a nonimmigrant under section
101(a)(15)(H)(i)(b1) who has not yet entered into employ-
ment with an employer who has had approved an attesta-
tion under this subsection with respect to the non-
immigrant, the provisions of subclauses (I) and (II) shall
apply to the employer beginning 30 days after the date
the nonimmigrant first is admitted into the United States,
or 60 days after the date the nonimmigrant becomes eligi-
ble to work for the employer in the case of a nonimmigrant
who is present in the United States on the date of the
approval of the attestation filed with the Secretary of
Labor.
‘‘(IV) This clause does not apply to a failure to pay
wages 
to 
a 
nonimmigrant 
under 
section
101(a)(15)(H)(i)(b1) for nonproductive time due to non-
work-related factors, such as the voluntary request of the
nonimmigrant for an absence or circumstances rendering
the nonimmigrant unable to work.
‘‘(V) This clause shall not be construed as prohibiting
an employer that is a school or other educational institu-
tion from applying to a nonimmigrant under section
101(a)(15)(H)(i)(b1) an established salary practice of the
employer, under which the employer pays to non-
immigrants under section 101(a)(15)(H)(i)(b1) and
United States workers in the same occupational classifica-
tion an annual salary in disbursements over fewer than
12 months, if—
‘‘(aa) the nonimmigrant agrees to the com-
pressed annual salary payments prior to the com-
mencement of the employment; and
‘‘(bb) the application of the salary practice to
the nonimmigrant does not otherwise cause the non-
immigrant to violate any condition of the non-
immigrant’s authorization under this Act to remain
in the United States.
‘‘(VI) This clause shall not be construed as super-
seding clause (viii).
‘‘(viii) It is a failure to meet a condition of paragraph
(1)(A) for an employer who has filed an attestation under
this subsection to fail to offer to a nonimmigrant under
section 101(a)(15)(H)(i)(b1), during the nonimmigrant’s
period of authorized employment, benefits and eligibility
for benefits (including the opportunity to participate in
health, life, disability, and other insurance plans; the op-
portunity to participate in retirement and savings plans;
and cash bonuses and non-cash compensation, such as
stock options (whether or not based on performance)) on
the same basis, and in accordance with the same criteria,
as the employer offers to United States workers.
‘‘(D) If the Secretary of Labor finds, after notice and
opportunity for a hearing, that an employer has not paid
wages at the wage level specified in the attestation and
required under paragraph (1), the Secretary of Labor
shall order the employer to provide for payment of such
amounts of back pay as may be required to comply with
the requirements of paragraph (1), whether or not a pen-
alty under subparagraph (C) has been imposed.
‘‘(E) The Secretary of Labor may, on a case-by-case
basis, subject an employer to random investigations for
a period of up to 5 years, beginning on the date on which
the employer is found by the Secretary of Labor to have
committed a willful failure to meet a condition of para-
graph (1) or to have made a willful misrepresentation of
material fact in an attestation. The authority of the Sec-
retary of Labor under this subparagraph shall not be con-
strued to be subject to, or limited by, the requirements
of subparagraph (A).
‘‘(F) Nothing in this subsection shall be construed
as superseding or preempting any other enforcement-re-
lated authority under this Act (such as the authorities
under section 274B), or any other Act.
‘‘(4) For purposes of this subsection:
‘‘(A) The term ‘area of employment’ means the
area within normal commuting distance of the work-
site or physical location where the work of the non-
immigrant under section 101(a)(15)(H)(i)(b1) is or
will be performed. If such worksite or location is
within a Metropolitan Statistical Area, any place
within such area is deemed to be within the area of
employment.
‘‘(B) In the case of an attestation with respect
to one or more nonimmigrants under section
101(a)(15)(H)(i)(b1) by an employer, the employer
is considered to ‘displace’ a United States worker
from a job if the employer lays off the worker from
a job that is essentially the equivalent of the job for
which the nonimmigrant or nonimmigrants is or are
sought. A job shall not be considered to be essen-
tially equivalent of another job unless it involves es-
sentially the same responsibilities, was held by a
United States worker with substantially equivalent
qualifications and experience, and is located in the
same area of employment as the other job.
‘‘(C)(i) The term ‘lays off’, with respect to a
worker—
‘‘(I) means to cause the worker’s loss of
employment, other than through a discharge for
inadequate performance, violation of workplace
rules, cause, voluntary departure, voluntary re-
tirement, or the expiration of a grant or con-
tract; but
‘‘(II) does not include any situation in
which the worker is offered, as an alternative to
such loss of employment, a similar employment
opportunity with the same employer at equiva-
lent or higher compensation and benefits than
the position from which the employee was dis-
charged, regardless of whether or not the em-
ployee accepts the offer.
‘‘(ii) Nothing in this subparagraph is intended
to limit an employee’s rights under a collective bar-
gaining agreement or other employment contract.
‘‘(D) The term ‘United States worker’ means
an employee who—
‘‘(i) is a citizen or national of the United
States; or
‘‘(ii) is an alien who is lawfully admitted
for permanent residence, is admitted as a ref-
ugee under section 207 of this title, is granted
asylum under section 208, or is an immigrant
otherwise authorized, by this Act or by the Sec-
retary of Homeland Security, to be employed.’’.
(c) SPECIAL RULE
FOR COMPUTATION
OF PRE-
VAILING WAGE.—Section 212(p)(1) of the Immigration
and Nationality Act (8 U.S.C. 1182(p)(1)) is amended by
striking ‘‘(n)(1)(A)(i)(II) and (a)(5)(A)’’ and inserting
‘‘(a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II)’’.
(d) FEE.—
(1) IN GENERAL.—Section 214(c) of the Immi-
gration and Nationality Act (8 U.S.C. 1184(c)) is
amended by adding at the end the following:
‘‘(11)(A) Subject to subparagraph (B), the Secretary
of Homeland Security or the Secretary of State, as appro-
priate, shall impose a fee on an employer who has filed
an attestation described in section 212(t)—
‘‘(i) in order that an alien may be initially
granted nonimmigrant status described in section
101(a)(15)(H)(i)(b1); or
‘‘(ii) in order to satisfy the requirement of the
second sentence of subsection (g)(8)(C) for an alien
having such status to obtain certain extensions of
stay.
‘‘(B) The amount of the fee shall be the same as the
amount imposed by the Secretary of Homeland Security
under paragraph (9), except that if such paragraph does
not authorize such Secretary to impose any fee, no fee
shall be imposed under this paragraph.
‘‘(C) Fees collected under this paragraph shall be de-
posited in the Treasury in accordance with section
286(s).’’.
(2) USE OF FEE.—Section 286(s)(1) of the Im-
migration and Nationality Act (8 U.S.C. 1356(s)(1))
is amended by striking ‘‘section 214(c)(9).’’ and in-
serting ‘‘paragraphs (9) and (11) of section
214(c).’’.
SEC. 403. LABOR DISPUTES.
Section 214(j) of the Immigration and Nationality
Act (8 U.S.C. 1184(j)) is amended—
(1) by striking ‘‘(j)’’ and inserting ‘‘(j)(1)’’;
(2) by striking ‘‘this subsection’’ each place
such term appears and inserting ‘‘this paragraph’’;
and
(3) by adding at the end the following:
‘‘(2) Notwithstanding any other provision of this Act
except section 212(t)(1), and subject to regulations pro-
mulgated by the Secretary of Homeland Security, an alien
who seeks to enter the United States under and pursuant
to the provisions of an agreement listed in subsection
(g)(8)(A), and the spouse and children of such an alien
if accompanying or following to join the alien, may be de-
nied admission as a nonimmigrant under subparagraph
(E), (L), or (H)(i)(b1) of section 101(a)(15) if there is
100
in progress a labor dispute in the occupational classifica-
tion at the place or intended place of employment, unless
such alien establishes, pursuant to regulations promul-
gated by the Secretary of Homeland Security after con-
sultation with the Secretary of Labor, that the alien’s
entry will not affect adversely the settlement of the labor
dispute or the employment of any person who is involved
in the labor dispute. Notice of a determination under this
paragraph shall be given as may be required by such
agreement.’’.
SEC. 404. CONFORMING AMENDMENTS.
Section 214 of the Immigration and Nationality Act
(8 U.S.C. 1184) is amended—
(1) in subsection (b), by striking ‘‘(other than
a nonimmigrant described in subparagraph (H)(i),
(L), or (V) of section 101(a)(15))’’ and inserting
‘‘(other than a nonimmigrant described in subpara-
graph (L) or (V) of section 101(a)(15), and other
than a nonimmigrant described in any provision of
section 101(a)(15)(H)(i) except subclause (b1) of
such section)’’;
(2) in subsection (c)(1), by striking ‘‘section
101(a)(15)(H), (L), (O), or (P)(i)’’ and inserting
‘‘subparagraph (H), (L), (O), or (P)(i) of section
101
101(a)(15) (excluding nonimmigrants under section
101(a)(15)(H)(i)(b1))’’; and
(3) in subsection (h), by striking ‘‘(H)(i)’’ and
inserting ‘‘(H)(i)(b) or (c)’’.
Passed the House of Representatives July 24, 2003.
Attest:
Clerk.