of a good provided for in any of headings 1701 
through 1703. 
(H) A nonoriginating material provided for 
in chapter 17 that is used in the production of 
a good provided for in subheading 1806.10. 
(I) Except as provided in subparagraphs 
(A) through (H) and Annex 4.1 of the Agree-
ment, a nonoriginating material used in the 
production of a good provided for in any of 
chapters 1 through 24, unless the nonorigi-
nating material is provided for in a different 
subheading than the good for which origin is 
being determined under this section. 
(3) TEXTILE OR APPAREL GOODS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), a textile or apparel good 
that is not an originating good because certain 
fibers or yarns used in the production of the 
component of the good that determines the tar-
iff classification of the good do not undergo an 
applicable change in tariff classification, set 
forth in Annex 4.1 of the Agreement, shall be 
considered to be an originating good if— 
(i) the total weight of all such fibers 
or yarns in that component is not more
than 10 percent of the total weight of that 
component; or 
(ii) the yarns are those described in 
section 204(b)(3)(B)(vi)(IV) of the Andean 
Trade 
Preference 
Act 
(19 
U.S.C. 
3203(b)(3)(B)(vi)(IV)) (as in effect on 
February 12, 2011). 
(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 and 
finished in the territory of Panama, the United 
States, or both. 
(C) FABRIC, YARN, OR FIBER.—For pur-
poses of this paragraph, in the case of a good 
that is a fabric, yarn, or fiber, the term ‘‘com-
ponent of the good that determines the tariff 
classification of the good’’ means all of the fi-
bers in the good. 
(g) FUNGIBLE GOODS AND MATERIALS.— 
(1) IN GENERAL.— 
(A) CLAIM
FOR
PREFERENTIAL
TARIFF 
TREATMENT.—A person claiming that a fun-
gible good or fungible material is an originating 
good may base the claim either on the physical 
segregation of the fungible good or fungible ma-
terial or by using an inventory management 
method with respect to the fungible good or 
fungible material. 
(B) INVENTORY MANAGEMENT METHOD.— 
In this subsection, the term ‘‘inventory manage-
ment method’’ means— 
(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 Panama or the 
United States); or 
(II) otherwise accepted by that 
country. 
(2) ELECTION
OF
INVENTORY
METHOD.—A 
person selecting an inventory management method 
under paragraph (1) for a particular fungible good 
or fungible material shall continue to use that meth-
od for that fungible good or fungible material 
throughout the fiscal year of such person. 
(h) ACCESSORIES, SPARE PARTS, OR TOOLS.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), accessories, spare parts, or tools delivered 
with a good that form part of the good’s standard 
accessories, spare parts, or tools shall— 
(A) be treated as originating goods if the 
good is an originating good; and 
(B) be disregarded in determining whether 
all the nonoriginating materials used in the pro-
duction of the good undergo the applicable 
change in tariff classification set forth in Annex 
4.1 of the Agreement. 
(2) CONDITIONS.—Paragraph (1) shall apply 
only if— 
(A) the accessories, spare parts, or tools 
are classified with and not invoiced separately 
from the good, regardless of whether such ac-
cessories, spare parts, or tools are specified or 
are separately identified in the invoice for the 
good; and 
(B) the quantities and value of the acces-
sories, spare parts, or tools are customary for 
the good.
(3) REGIONAL VALUE-CONTENT.—If the good is 
subject to a regional value-content requirement, the 
value of the accessories, spare parts, or tools shall 
be taken into account as originating or nonorigi-
nating materials, as the case may be, in calculating 
the regional value-content of the good. 
(i) PACKAGING MATERIALS AND CONTAINERS FOR 
RETAIL SALE.—Packaging materials and containers in 
which a good is packaged for retail sale, if classified with 
the good, shall be disregarded in determining whether all 
the nonoriginating materials used in the production of the 
good undergo the applicable change in tariff classification 
set forth in Annex 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. 
(j) PACKING MATERIALS
AND CONTAINERS
FOR 
SHIPMENT.—Packing materials and containers for ship-
ment shall be disregarded in determining whether a good 
is an originating good. 
(k) INDIRECT MATERIALS.—An indirect material 
shall be treated as an originating material without regard 
to where it is produced.
(l) TRANSIT AND TRANSHIPMENT.—A good that has 
undergone production necessary to qualify as an origi-
nating good under subsection (b) shall not be considered 
to be an originating good if, subsequent to that produc-
tion, the good— 
(1) undergoes further production or any other 
operation outside the territory of Panama or the 
United States, other than unloading, reloading, or 
any other operation necessary to preserve the good 
in good condition or to transport the good to the ter-
ritory of Panama or the United States; or 
(2) does not remain under the control of cus-
toms authorities in the territory of a country other 
than Panama or the United States. 
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN 
SETS.—Notwithstanding the rules set forth in Annex 4.1 
of the Agreement, goods classifiable as goods put up in 
sets for retail sale as provided for in General Rule of Inter-
pretation 3 of the HTS shall not be considered to be origi-
nating goods unless— 
(1) each of the goods in the set is an origi-
nating good; or 
(2) the total value of the nonoriginating goods 
in the set does not exceed—
or motor vehicles for the transport of 16 or 
more persons provided for in subheading 
8702.10 or 8702.90. 
(B) Motor vehicles provided for in sub-
heading 
8701.10 
or 
any 
of 
subheadings 
8701.30 through 8701.90. 
(C) Motor vehicles for the transport of 15 
or fewer persons provided for in subheading 
8702.10 or 8702.90, or motor vehicles provided 
for in subheading 8704.21 or 8704.31. 
(D) Motor vehicles provided for in any of 
subheadings 8703.21 through 8703.90. 
(3) FUNGIBLE
GOOD
OR
FUNGIBLE
MATE-
RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate-
rial’’ means a good or material, as the case may be, 
that is interchangeable with another good or mate-
rial for commercial purposes and the properties of 
which are essentially identical to such other good or 
material. 
(4) GENERALLY ACCEPTED ACCOUNTING PRIN-
CIPLES.—The term ‘‘generally accepted accounting 
principles’’— 
(A) means the recognized consensus or 
substantial authoritative support given in the 
territory of Panama or the United States, as
the case may be, with respect to the recording 
of revenues, expenses, costs, assets, and liabil-
ities, the disclosure of information, and the 
preparation of financial statements; and 
(B) may encompass broad guidelines for 
general application as well as detailed stand-
ards, practices, and procedures. 
(5) GOOD WHOLLY OBTAINED OR PRODUCED 
ENTIRELY
IN
THE
TERRITORY
OF
PANAMA, THE 
UNITED STATES, OR BOTH.—The term ‘‘good wholly 
obtained or produced entirely in the territory of 
Panama, the United States, or both’’ means any of 
the following: 
(A) Plants and plant products harvested or 
gathered in the territory of Panama, the United 
States, or both. 
(B) Live animals born and raised in the 
territory of Panama, the United States, or 
both. 
(C) Goods obtained in the territory of Pan-
ama, the United States, or both from live ani-
mals. 
(D) Goods obtained from hunting, trap-
ping, fishing, or aquaculture conducted in the
territory of Panama, the United States, or 
both. 
(E) Minerals and other natural resources 
not included in subparagraphs (A) through (D) 
that are extracted or taken from the territory 
of Panama, the United States, or both. 
(F) Fish, shellfish, and other marine life 
taken from the sea, seabed, or subsoil outside 
the territory of Panama or the United States 
by— 
(i) a vessel that is registered or re-
corded with Panama and flying the flag of 
Panama; or 
(ii) a vessel that is documented under 
the laws of the United States. 
(G) Goods produced on board a factory 
ship from goods referred to in subparagraph 
(F), if such factory ship— 
(i) is registered or recorded with Pan-
ama and flies the flag of Panama; or 
(ii) is a vessel that is documented 
under the laws of the United States. 
(H)(i) Goods taken by Panama or a person 
of Panama from the seabed or subsoil outside
the territorial waters of Panama, if Panama 
has rights to exploit such seabed or subsoil. 
(ii) Goods taken by the United States or a 
person of the United States from the seabed or 
subsoil outside the territorial waters of the 
United States, if the United States has rights 
to exploit such seabed or subsoil. 
(I) Goods taken from outer space, if the 
goods are obtained by Panama or the United 
States or a person of Panama or the United 
States and not processed in the territory of a 
country other than Panama or the United 
States. 
(J) Waste and scrap derived from— 
(i) manufacturing or processing oper-
ations in the territory of Panama, the 
United States, or both; or 
(ii) used goods collected in the terri-
tory of Panama, the United States, or 
both, if such goods are fit only for the re-
covery of raw materials. 
(K) Recovered goods derived in the terri-
tory of Panama, the United States, or both 
from used goods, and used in the territory of
Panama, the United States, or both, in the pro-
duction of remanufactured goods. 
(L) Goods, at any stage of production, pro-
duced in the territory of Panama, the United 
States, or both, exclusively from— 
(i) goods referred to in any of sub-
paragraphs (A) through (J), or 
(ii) the derivatives of goods referred 
to in clause (i). 
(6) IDENTICAL
GOODS.—The term ‘‘identical 
goods’’ means goods that are the same in all re-
spects relevant to the rule of origin that qualifies the 
goods as originating goods. 
(7) INDIRECT MATERIAL.—The term ‘‘indirect 
material’’ means a good used in the production, test-
ing, or inspection of another good but not physically 
incorporated into that other good, or a good used in 
the maintenance of buildings or the operation of 
equipment associated with the production of another 
good, including— 
(A) fuel and energy; 
(B) tools, dies, and molds; 
(C) spare parts and materials used in the 
maintenance of equipment or buildings;
(D) lubricants, greases, compounding ma-
terials, and other materials used in production 
or used to operate equipment or buildings; 
(E) gloves, glasses, footwear, clothing, 
safety equipment, and supplies; 
(F) equipment, devices, and supplies used 
for testing or inspecting the good; 
(G) catalysts and solvents; and 
(H) any other good that is not incor-
porated into the other good but the use of 
which in the production of the other good can 
reasonably be demonstrated to be a part of that 
production. 
(8) MATERIAL.—The term ‘‘material’’ means a 
good that is used in the production of another good, 
including a part or an ingredient. 
(9) MATERIAL THAT IS SELF-PRODUCED.—The 
term ‘‘material that is self-produced’’ means an orig-
inating material that is produced by a producer of 
a good and used in the production of that good. 
(10) MODEL LINE OF MOTOR VEHICLES.—The 
term ‘‘model line of motor vehicles’’ means a group 
of motor vehicles having the same platform or model 
name.
(11) NET COST.—The term ‘‘net cost’’ means 
total cost minus sales promotion, marketing, and 
after-sales service costs, royalties, shipping and 
packing costs, and nonallowable interest costs that 
are included in the total cost. 
(12) NONALLOWABLE INTEREST COSTS.—The 
term ‘‘nonallowable interest costs’’ means interest 
costs incurred by a producer that exceed 700 basis 
points above the applicable official interest rate for 
comparable maturities of the country in which the 
producer is located. 
(13) NONORIGINATING
GOOD
OR
NONORIGI-
NATING
MATERIAL.—The 
term 
‘‘nonoriginating 
good’’ or ‘‘nonoriginating material’’ means a good or 
material, as the case may be, that does not qualify 
as originating under this section. 
(14) PACKING
MATERIALS
AND
CONTAINERS 
FOR SHIPMENT.—The term ‘‘packing materials and 
containers for shipment’’ means goods used to pro-
tect another good during its transportation and does 
not include the packaging materials and containers 
in which the other good is packaged for retail sale. 
(15) PREFERENTIAL
TARIFF
TREATMENT.— 
The term ‘‘preferential tariff treatment’’ means the 
customs duty rate, and the treatment under article
3.10.4 of the Agreement, that are applicable to an 
originating good pursuant to the Agreement. 
(16) PRODUCER.—The term ‘‘producer’’ means 
a person who engages in the production of a good 
in the territory of Panama or the United States. 
(17) PRODUCTION.—The term ‘‘production’’ 
means growing, mining, harvesting, fishing, raising, 
trapping, hunting, manufacturing, processing, as-
sembling, or disassembling a good. 
(18) REASONABLY ALLOCATE.—The term ‘‘rea-
sonably allocate’’ means to apportion in a manner 
that would be appropriate under generally accepted 
accounting principles. 
(19) RECOVERED
GOODS.—The term ‘‘recov-
ered goods’’ means materials in the form of indi-
vidual parts that are the result of— 
(A) the disassembly of used goods into in-
dividual parts; and 
(B) the cleaning, inspecting, testing, or 
other processing that is necessary for improve-
ment to sound working condition of such indi-
vidual parts. 
(20) REMANUFACTURED GOOD.—The term ‘‘re-
manufactured good’’ means a good that is classified 
under chapter 84, 85, 87, or 90, or heading 9402,
other than a good classified under heading 8418 or 
8516, and that— 
(A) is entirely or partially comprised of re-
covered goods; and 
(B) has a similar life expectancy and en-
joys a factory warranty similar to such a good 
that is new. 
(21) TOTAL
COST.—The term ‘‘total cost’’ 
means all product costs, period costs, and other 
costs for a good incurred in the territory of Panama, 
the United States, or both. 
(22) USED.—The term ‘‘used’’ means utilized 
or consumed in the production of goods. 
(o) PRESIDENTIAL PROCLAMATION AUTHORITY.— 
(1) IN GENERAL.—The President is authorized 
to proclaim, as part of the HTS— 
(A) the provisions set forth in Annex 4.1 
of the Agreement; and 
(B) any additional subordinate category 
that is necessary to carry out this title con-
sistent with the Agreement. 
(2) FABRICS, YARNS, OR FIBERS NOT AVAIL-
ABLE IN COMMERCIAL QUANTITIES IN THE UNITED 
STATES.—The President is authorized to proclaim 
that a fabric, yarn, or fiber is added to the list in
Annex 3.25 of the Agreement in an unrestricted 
quantity, as provided in article 3.25.4(e) of the 
Agreement. 
(3) MODIFICATIONS.— 
(A) IN GENERAL.—Subject to the consulta-
tion and layover provisions of section 104, the 
President may proclaim modifications to the 
provisions proclaimed under the authority of 
paragraph (1)(A), other than provisions of 
chapters 50 through 63 (as included in Annex 
4.1 of the Agreement). 
(B) ADDITIONAL
PROCLAMATIONS.—Not-
withstanding subparagraph (A), and subject to 
the consultation and layover provisions of sec-
tion 104, the President may proclaim before the 
end of the 1-year period beginning on the date 
on which the Agreement enters into force, 
modifications to correct any typographical, cler-
ical, or other nonsubstantive technical error re-
garding the provisions of chapters 50 through 
63 (as included in Annex 4.1 of the Agree-
ment). 
(4) FABRICS, YARNS, OR FIBERS NOT AVAIL-
ABLE IN COMMERCIAL QUANTITIES IN PANAMA AND 
THE UNITED STATES.—
(A) IN GENERAL.—Notwithstanding para-
graph (3)(A), the list of fabrics, yarns, and fi-
bers set forth in Annex 3.25 of the Agreement 
may be modified as provided for in this para-
graph. 
(B) DEFINITIONS.—In this paragraph: 
(i) INTERESTED ENTITY.—The term 
‘‘interested entity’’ means the Government 
of Panama, a potential or actual purchaser 
of a textile or apparel good, or a potential 
or actual supplier of a textile or apparel 
good. 
(ii) DAY; DAYS.—All references to 
‘‘day’’ and ‘‘days’’ exclude Saturdays, Sun-
days, and legal holidays observed by the 
Government of the United States. 
(C) REQUESTS TO ADD FABRICS, YARNS, 
OR FIBERS.— 
(i) IN GENERAL.—An interested entity 
may request the President to determine 
that a fabric, yarn, or fiber is not available 
in commercial quantities in a timely man-
ner in Panama and the United States and 
to add that fabric, yarn, or fiber to the list
in Annex 3.25 of the Agreement in a re-
stricted or unrestricted quantity. 
(ii) DETERMINATIONS.—After receiv-
ing a request under clause (i), the Presi-
dent may determine whether— 
(I) the fabric, yarn, or fiber is 
available in commercial quantities in a 
timely manner in Panama or the 
United States; or 
(II) any interested entity objects 
to the request. 
(iii) PROCLAMATION
AUTHORITY.— 
The President may, within the time peri-
ods specified in clause (iv), proclaim that 
the fabric, yarn, or fiber that is the subject 
of the request is added to the list in Annex 
3.25 of the Agreement in an unrestricted 
quantity, or in any restricted quantity that 
the President may establish, if the Presi-
dent has determined under clause (ii) 
that— 
(I) the fabric, yarn, or fiber is 
not available in commercial quantities 
in a timely manner in Panama and 
the United States; or
(II) no interested entity has ob-
jected to the request. 
(iv) TIME PERIODS.—The time peri-
ods within which the President may issue 
a proclamation under clause (iii) are— 
(I) not later than 30 days after 
the date on which a request is sub-
mitted under clause (i); or 
(II) not later than 44 days after 
the request is submitted, if the Presi-
dent determines, within 30 days after 
the date on which the request is sub-
mitted, that the President does not 
have sufficient information to make a 
determination under clause (ii). 
(v) 
EFFECTIVE
DATE.—Notwith-
standing section 103(a)(2), a proclamation 
made under clause (iii) shall take effect on 
the date on which the text of the proclama-
tion is published in the Federal Register. 
(vi) ELIMINATION OF RESTRICTION.— 
Not later than 6 months after proclaiming 
under clause (iii) that a fabric, yarn, or 
fiber is added to the list in Annex 3.25 of 
the Agreement in a restricted quantity, the
President may eliminate the restriction if 
the President determines that the fabric, 
yarn, or fiber is not available in commer-
cial quantities in a timely manner in Pan-
ama and the United States. 
(D) DEEMED APPROVAL OF REQUEST.—If, 
after an interested entity submits a request 
under subparagraph (C)(i), the President does 
not, within the applicable time period specified 
in subparagraph (C)(iv), make a determination 
under subparagraph (C)(ii) regarding the re-
quest, the fabric, yarn, or fiber that is the sub-
ject of the request shall be considered to be 
added, in an unrestricted quantity, to the list in 
Annex 3.25 of the Agreement beginning— 
(i) 45 days after the date on which 
the request is submitted; or 
(ii) 60 days after the date on which 
the request is submitted, if the President 
made a determination under subparagraph 
(C)(iv)(II). 
(E) REQUESTS TO RESTRICT OR REMOVE 
FABRICS, YARNS, OR FIBERS.— 
(i) IN
GENERAL.—Subject to clause 
(ii), an interested entity may request the
President to restrict the quantity of, or re-
move from the list in Annex 3.25 of the 
Agreement, any fabric, yarn, or fiber— 
(I) that has been added to that 
list in an unrestricted quantity pursu-
ant to paragraph (2) or subparagraph 
(C)(iii) or (D) of this paragraph; or 
(II) with respect to which the 
President has eliminated a restriction 
under subparagraph (C)(vi). 
(ii) TIME PERIOD FOR SUBMISSION.— 
An interested entity may submit a request 
under clause (i) at any time beginning on 
the date that is 6 months after the date of 
the action described in subclause (I) or (II) 
of that clause. 
(iii) PROCLAMATION
AUTHORITY.— 
Not later than 30 days after the date on 
which a request under clause (i) is sub-
mitted, the President may proclaim an ac-
tion provided for under clause (i) if the 
President determines that the fabric, yarn, 
or fiber that is the subject of the request 
is available in commercial quantities in a
timely manner in Panama or the United 
States. 
(iv) EFFECTIVE DATE.—A proclama-
tion issued under clause (iii) may not take 
effect earlier than the date that is 6 
months after the date on which the text of 
the proclamation is published in the Fed-
eral Register. 
(F) PROCEDURES.—The President shall 
establish procedures— 
(i) governing the submission of a re-
quest under subparagraphs (C) and (E); 
and 
(ii) providing an opportunity for inter-
ested entities to submit comments and sup-
porting evidence before the President 
makes a determination under subpara-
graph (C) (ii) or (vi) or (E)(iii). 
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 adding after paragraph (20) the following: 
‘‘(21) No fee may be charged under subsection (a)(9) 
or (10) with respect to goods that qualify as originating 
goods under section 203 of the United States–Panama
Trade Promotion Agreement Implementation Act. Any 
service for which an exemption from such fee is provided 
by reason of this paragraph may not be funded with 
money contained in the Customs User Fee Account.’’. 
SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; 
FALSE CERTIFICATIONS OF ORIGIN; DENIAL 
OF PREFERENTIAL TARIFF TREATMENT. 
(a) DISCLOSURE
OF INCORRECT INFORMATION.— 
Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) 
is amended— 
(1) in subsection (c)— 
(A) by redesignating paragraph (13) as 
paragraph (14); and 
(B) by inserting after paragraph (12) the 
following new paragraph: 
‘‘(13) PRIOR DISCLOSURE REGARDING CLAIMS 
UNDER THE UNITED STATES–PANAMA TRADE PRO-
MOTION
AGREEMENT.—An importer shall not be 
subject to penalties under subsection (a) for making 
an incorrect claim that a good qualifies as an origi-
nating good under section 203 of the United States– 
Panama Trade Promotion Agreement Implementa-
tion Act if the importer, in accordance with regula-
tions issued by the Secretary of the Treasury, 
promptly and voluntarily makes a corrected declara-
tion and pays any duties owing with respect to that 
good.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(l) FALSE CERTIFICATIONS OF ORIGIN UNDER THE 
UNITED STATES–PANAMA TRADE PROMOTION AGREE-
MENT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
it is unlawful for any person to certify falsely, by 
fraud, gross negligence, or negligence, in a Panama 
TPA certification of origin (as defined in section 
508 of this Act) that a good exported from the 
United States qualifies as an originating good under 
the rules of origin provided for in section 203 of the 
United States–Panama Trade Promotion Agreement 
Implementation Act. The procedures and penalties 
of this section that apply to a violation of subsection 
(a) also apply to a violation of this subsection. 
‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF 
INCORRECT INFORMATION.—No penalty shall be im-
posed under this subsection if, promptly after an ex-
porter or producer that issued a Panama TPA cer-
tification of origin has reason to believe that such 
certification contains or is based on incorrect infor-
mation, the exporter or producer voluntarily provides
written notice of such incorrect information to every 
person to whom the certification was issued. 
‘‘(3) EXCEPTION.—A person shall not be con-
sidered to have violated paragraph (1) if— 
‘‘(A) the information was correct at the 
time it was provided in a Panama TPA certifi-
cation of origin but was later rendered incorrect 
due to a change in circumstances; and 
‘‘(B) the person promptly and voluntarily 
provides written notice of the change in cir-
cumstances to all persons to whom the person 
provided the certification.’’. 
(b) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C. 
1514) is amended by adding at the end the following new 
subsection: 
‘‘(l) DENIAL OF PREFERENTIAL TARIFF TREATMENT 
UNDER
THE UNITED STATES–PANAMA TRADE PRO-
MOTION AGREEMENT.—If U.S. Customs and Border Pro-
tection or U.S. Immigration and Customs Enforcement of 
the Department of Homeland Security finds indications 
of a pattern of conduct by an importer, exporter, or pro-
ducer of false or unsupported representations that goods 
qualify under the rules of origin provided for in section 
203 of the United States–Panama Trade Promotion
Agreement Implementation Act, U.S. Customs and Border 
Protection, in accordance with regulations issued by the 
Secretary of the Treasury, may suspend preferential tariff 
treatment under the United States–Panama Trade Pro-
motion Agreement to entries of identical goods covered by 
subsequent representations by that importer, exporter, or 
producer until U.S. Customs and Border Protection deter-
mines that representations of that person are in con-
formity with such section 203.’’. 
SEC. 206. RELIQUIDATION OF ENTRIES. 
Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 
1520(d)) is amended in the matter preceding paragraph 
(1)— 
(1) by striking ‘‘or’’; and 
(2) by striking ‘‘for which’’ and inserting ‘‘, or 
section 203 of the United States–Panama Trade 
Promotion Agreement Implementation Act for 
which’’. 
SEC. 207. RECORDKEEPING REQUIREMENTS. 
Section 508 of the Tariff Act of 1930 (19 U.S.C. 
1508) is amended— 
(1) by redesignating subsection (k) as sub-
section (l); 
(2) by inserting after subsection (j) the fol-
lowing new subsection:
‘‘(k) CERTIFICATIONS OF ORIGIN FOR GOODS EX-
PORTED UNDER THE UNITED STATES–PANAMA TRADE 
PROMOTION AGREEMENT.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) RECORDS
AND
SUPPORTING
DOCU-
MENTS.—The term ‘records and supporting 
documents’ means, with respect to an exported 
good under paragraph (2), records and docu-
ments related to the origin of the good, includ-
ing— 
‘‘(i) the purchase, cost, and value of, 
and payment for, the good; 
‘‘(ii) the purchase, cost, and value of, 
and payment for, all materials, including 
indirect materials, used in the production 
of the good; and 
‘‘(iii) the production of the good in 
the form in which it was exported. 
‘‘(B) PANAMA TPA CERTIFICATION OF ORI-
GIN.—The term ‘Panama TPA certification of 
origin’ means the certification established under 
article 4.15 of the United States–Panama 
Trade Promotion Agreement that a good quali-
fies as an originating good under such Agree-
ment.
‘‘(2) EXPORTS TO PANAMA.—Any person who 
completes and issues a Panama TPA certification of 
origin for a good exported from the United States 
shall make, keep, and, pursuant to rules and regula-
tions promulgated by the Secretary of the Treasury, 
render for examination and inspection all records 
and supporting documents related to the origin of 
the good (including the certification or copies there-
of). 
‘‘(3) RETENTION
PERIOD.—The person who 
issues a Panama TPA certification of origin shall 
keep the records and supporting documents relating 
to that certification of origin for a period of at least 
5 years after the date on which the certification is 
issued.’’; and 
(3) in subsection (l), as so redesignated, by 
striking ‘‘(i), or (j)’’ and inserting ‘‘(i), (j), or (k)’’. 
SEC. 208. ENFORCEMENT RELATING TO TRADE IN TEXTILE 
OR APPAREL GOODS. 
(a) ACTION DURING VERIFICATION.— 
(1) IN
GENERAL.—If the Secretary of the 
Treasury requests the Government of Panama to 
conduct a verification pursuant to article 3.21 of the 
Agreement for purposes of making a determination 
under paragraph (2), the President may direct the
Secretary to take appropriate action described in 
subsection (b) while the verification is being con-
ducted. 
(2) DETERMINATION.—A determination under 
this paragraph is a determination of the Secretary 
that— 
(A) an enterprise in Panama is complying 
with applicable customs laws, regulations, and 
procedures regarding trade in textile or apparel 
goods, or 
(B) a claim that a textile or apparel good 
exported or produced by such enterprise— 
(i) qualifies as an originating good 
under section 203, or 
(ii) is a good of Panama, 
is accurate. 
(b) APPROPRIATE ACTION DESCRIBED.—Appropriate 
action under subsection (a)(1) includes— 
(1) suspension of preferential tariff treatment 
under the Agreement with respect to— 
(A) any textile or apparel good exported or 
produced by the person that is the subject of a 
verification under subsection (a)(1) regarding 
compliance described in subsection (a)(2)(A), if 
the Secretary of the Treasury determines that
there is insufficient information to support any 
claim for preferential tariff treatment that has 
been made with respect to any such good; or 
(B) the textile or apparel good for which a 
claim of preferential tariff treatment has been 
made that is the subject of a verification under 
subsection (a)(1) regarding a claim described in 
subsection (a)(2)(B), if the Secretary deter-
mines that there is insufficient information to 
support that claim; 
(2) denial of preferential tariff treatment under 
the Agreement with respect to— 
(A) any textile or apparel good exported or 
produced by the person that is the subject of a 
verification under subsection (a)(1) regarding 
compliance described in subsection (a)(2)(A), if 
the Secretary determines that the person has 
provided incorrect information to support any 
claim for preferential tariff treatment that has 
been made with respect to any such good; or 
(B) the textile or apparel good for which a 
claim of preferential tariff treatment has been 
made that is the subject of a verification under 
subsection (a)(1) regarding a claim described in 
subsection (a)(2)(B), if the Secretary deter-
mines that a person has provided incorrect in-
formation to support that claim; 
(3) detention of any textile or apparel good ex-
ported or produced by the person that is the subject 
of a verification under subsection (a)(1) regarding 
compliance described in subsection (a)(2)(A) or a 
claim described in subsection (a)(2)(B), if the Sec-
retary determines that there is insufficient informa-
tion to determine the country of origin of any such 
good; and 
(4) denial of entry into the United States of 
any textile or apparel good exported or produced by 
the person that is the subject of a verification under 
subsection (a)(1) regarding compliance described in 
subsection (a)(2)(A) or a claim described in sub-
section (a)(2)(B), if the Secretary determines that 
the person has provided incorrect information as to 
the country of origin of any such good. 
(c) ACTION ON COMPLETION OF A VERIFICATION.— 
On completion of a verification under subsection (a), the 
President may direct the Secretary of the Treasury to take 
appropriate action described in subsection (d) until such 
time as the Secretary receives information sufficient to 
make the determination under subsection (a)(2) or until 
such earlier date as the President may direct.
(d) APPROPRIATE
ACTION
DESCRIBED.—Appro-
priate action under subsection (c) includes— 
(1) denial of preferential tariff treatment under 
the Agreement with respect to— 
(A) any textile or apparel good exported or 
produced by the person that is the subject of a 
verification under subsection (a)(1) regarding 
compliance described in subsection (a)(2)(A), if 
the Secretary of the Treasury determines that 
there is insufficient information to support, or 
that the person has provided incorrect informa-
tion to support, any claim for preferential tariff 
treatment that has been made with respect to 
any such good; or 
(B) the textile or apparel good for which a 
claim of preferential tariff treatment has been 
made that is the subject of a verification under 
subsection (a)(1) regarding a claim described in 
subsection (a)(2)(B), if the Secretary deter-
mines that there is insufficient information to 
support, or that a person has provided incorrect 
information to support, that claim; and 
(2) denial of entry into the United States of 
any textile or apparel good exported or produced by 
the person that is the subject of a verification under
subsection (a)(1) regarding compliance described in 
subsection (a)(2)(A) or a claim described in sub-
section (a)(2)(B), if the Secretary determines that 
there is insufficient information to determine, or 
that the person has provided incorrect information 
as to, the country of origin of any such good. 
(e) PUBLICATION OF NAME OF PERSON.—In accord-
ance with article 3.21.9 of the Agreement, the Secretary 
of the Treasury may publish the name of any person that 
the Secretary has determined— 
(1) is engaged in intentional circumvention of 
applicable laws, regulations, or procedures affecting 
trade in textile or apparel goods; or 
(2) has failed to demonstrate that it produces, 
or is capable of producing, the textile or apparel 
goods that are the subject of a verification under 
subsection (a)(1). 
SEC. 209. REGULATIONS. 
The Secretary of the Treasury shall prescribe such 
regulations as may be necessary to carry out— 
(1) subsections (a) through (n) of section 203; 
(2) the amendment made by section 204; and 
(3) any proclamation issued under section 
203(o).
TITLE III—RELIEF FROM 
IMPORTS 
SEC. 301. DEFINITIONS. 
In this title: 
(1) PANAMANIAN ARTICLE.—The term ‘‘Pan-
amanian article’’ means an article that qualifies as 
an originating good under section 203(b). 
(2) PANAMANIAN TEXTILE OR APPAREL ARTI-
CLE.—The term ‘‘Panamanian textile or apparel ar-
ticle’’ means a textile or apparel good (as defined in 
section 3(4)) that is a Panamanian article. 
Subtitle A—Relief From Imports 
Benefitting 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 Panamanian 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 Panamanian article con-
stitute 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 Panamanian article if, after the date on which 
the Agreement enters into force, import relief has been 
provided with respect to that Panamanian article under 
this subtitle.
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.— 
(1) IN GENERAL.—If the determination made 
by the Commission under subsection (a) with respect 
to imports of an article is affirmative, or if the 
President may consider a determination of the Com-
mission to be an affirmative determination as pro-
vided for under paragraph (1) of section 330(d) of 
the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 
Commission shall find, and recommend to the Presi-
dent in the report required under subsection (d), the 
amount of import relief that is necessary to remedy 
or prevent the injury found by the Commission in 
the determination and to facilitate the efforts of the
domestic industry to make a positive adjustment to 
import competition. 
(2) LIMITATION ON RELIEF.—The import relief 
recommended by the Commission under this sub-
section shall be limited to the relief described in sec-
tion 313(c). 
(3) VOTING; SEPARATE
VIEWS.—Only those 
members of the Commission who voted in the af-
firmative under subsection (a) are eligible to vote on 
the proposed action to remedy or prevent the injury 
found by the Commission. Members of the Commis-
sion who did not vote in the affirmative may submit, 
in the report required under subsection (d), separate 
views regarding what action, if any, should be taken 
to remedy or prevent the injury. 
(d) REPORT TO PRESIDENT.—Not later than the 
date that is 30 days after the date on which a determina-
tion is made under subsection (a) with respect to an inves-
tigation, the Commission shall submit to the President a 
report that includes— 
(1) the determination made under subsection 
(a) and an explanation of the basis for the deter-
mination; 
(2) if the determination under subsection (a) is 
affirmative, any findings and recommendations for
import relief made under subsection (c) and an ex-
planation of the basis for each recommendation; and 
(3) any dissenting or separate views by mem-
bers of the Commission regarding the determination 
referred to in paragraph (1) and any finding or rec-
ommendation referred to in paragraph (2). 
(e) PUBLIC NOTICE.—Upon submitting a report to 
the President under subsection (d), the Commission shall 
promptly make public the report (with the exception of 
information which the Commission determines to be con-
fidential) and shall publish a summary of the report in 
the Federal Register. 
SEC. 313. PROVISION OF RELIEF. 
(a) IN GENERAL.—Not later than the date that is 
30 days after the date on which the President receives a 
report of the Commission in which the Commission’s de-
termination under section 312(a) is affirmative, or which 
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 the article. 
(B) An increase in the rate of duty im-
posed on the article to a level that does not ex-
ceed the lesser of— 
(i) the column 1 general rate of duty 
imposed under the HTS on like articles 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 8.2.3 of the Agreement) of such relief at 
regular intervals during the period of its application. 
(d) PERIOD OF RELIEF.— 
(1) IN GENERAL.—Subject to paragraph (2), 
any import relief that the President provides under 
this section may not, in the aggregate, be in effect 
for more than 4 years. 
(2) EXTENSION.— 
(A) IN GENERAL.—If the initial period for 
any import relief provided under this section is 
less than 4 years, the President, after receiving 
a determination from the Commission under 
subparagraph (B) that is affirmative, or which 
the President considers to be affirmative under 
paragraph (1) of section 330(d) of the Tariff 
Act of 1930 (19 U.S.C. 1330(d)(1)), may ex-
tend the effective period of any import relief 
provided under this section, subject to the limi-
tation under paragraph (1), if the President de-
termines that— 
(i) the import relief continues to be 
necessary to remedy or prevent serious in-
jury and to facilitate adjustment by the do-
mestic industry to import competition; and 
(ii) there is evidence that the industry 
is making a positive adjustment to import 
competition. 
(B) ACTION BY COMMISSION.— 
(i) INVESTIGATION.—Upon a petition 
on behalf of the industry concerned that is 
filed with the Commission not earlier than 
the date that is 9 months, and not later 
than the date that is 6 months, before the 
date on which any action taken under sub-
section (a) is to terminate, the Commission 
shall conduct an investigation to determine 
whether action under this section continues 
to be necessary to remedy or prevent seri-
ous injury and whether there is evidence 
that the industry is making a positive ad-
justment to import competition. 
(ii) 
NOTICE
AND
HEARING.—The 
Commission shall publish notice of the 
commencement of any proceeding under 
this subparagraph in the Federal Register 
and shall, within a reasonable time there-
after, hold a public hearing at which the
Commission shall afford interested parties 
and consumers an opportunity to be 
present, to present evidence, and to re-
spond to the presentations of other parties 
and consumers, and otherwise to be heard. 
(iii) REPORT.—The Commission shall 
submit to the President a report on its in-
vestigation and determination under this 
subparagraph not later than 60 days be-
fore the action under subsection (a) is to 
terminate, unless the President specifies a 
different date. 
(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 to Annex 3.3 of the Agreement, 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 such termination oc-
curs shall be, at the discretion of the President, ei-
ther— 
(A) the applicable rate of duty for that ar-
ticle set forth in the Schedule of the United 
States to 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 forth in the Schedule of 
the United States to Annex 3.3 of the Agree-
ment for the elimination of the tariff. 
(f) ARTICLES EXEMPT FROM RELIEF.—No import 
relief may be provided under this section on— 
(1) any article that is subject to import relief 
under— 
(A) subtitle B; or 
(B) chapter 1 of title II of the Trade Act 
of 1974 (19 U.S.C. 2251 et seq.); or 
(2) any article on which an additional duty as-
sessed under section 202(b) is in effect. 
SEC. 314. TERMINATION OF RELIEF AUTHORITY. 
(a) GENERAL RULE.—Subject to subsection (b), no 
import relief may be provided under this subtitle after the 
date that is 10 years after the date on which the Agree-
ment enters into force.
(b) EXCEPTION.—If an article for which relief is pro-
vided under this subtitle is an article for which the period 
for tariff elimination, set forth in the Schedule of the 
United States to Annex 3.3 of the Agreement, is greater 
than 10 years, no relief under this subtitle may be pro-
vided for that article after the date on which that period 
ends. 
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 (19 U.S.C. 2251 
et seq.). 
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–Panama Trade 
Promotion Agreement Implementation Act’’. 
Subtitle B—Textile and Apparel 
Safeguard Measures 
SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 
(a) IN GENERAL.—A request for action under this 
subtitle for the purpose of adjusting to the obligations of
the United States under the Agreement may be filed with 
the President by an interested party. Upon the filing of 
a request, the President shall review the request to deter-
mine, from information presented in the request, whether 
to commence 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 publish in the Federal Register a no-
tice of commencement of consideration of the request, and 
notice seeking public comments regarding the request. The 
notice shall include a summary of 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 Panamanian textile or 
apparel article is being imported into the United 
States in such increased quantities, in absolute 
terms or relative to the domestic market for that ar-
ticle, and under such conditions as to cause serious 
damage, or actual threat thereof, to a domestic in-