(B) If the difference between the unit im-
port price and the trigger price is greater than
10 percent, but less than or equal to 40 per-
cent, of the trigger price, the additional duty
shall be equal to 30 percent of the difference
between the preferential tariff rate and the col-
umn 1 general rate of duty imposed under the
HTS on like articles at the time the additional
duty is imposed.
(C) If the difference between the unit im-
port price and the trigger price is greater than
40 percent, but less than or equal to 60 per-
cent, of the trigger price, the additional duty
shall be equal to 50 percent of the difference
between the preferential tariff rate and the col-
umn 1 general rate of duty imposed under the
HTS on like articles at the time the additional
duty is imposed.
(D) If the difference between the unit im-
port price and the trigger price is greater than
60 percent, but less than or equal to 75 per-
cent, of the trigger price, the additional duty
shall be equal to 70 percent of the difference
between the preferential tariff rate and the col-
umn 1 general rate of duty imposed under the
HTS on like articles at the time the additional
duty is imposed.
(E) If the difference between the unit im-
port price and the trigger price is greater than
75 percent of the trigger price, the additional
duty shall be equal to 100 percent of the dif-
ference between the preferential tariff rate and
the column 1 general rate of duty imposed
under the HTS on like articles at the time the
additional duty is imposed.
(3) EXCEPTIONS.—No additional duty under
this subsection shall be assessed on an agricultural
safeguard good if, at the time of entry, the good is
subject to import relief under—
(A) subtitle A of title III of this Act; or
(B) chapter 1 of title II of the Trade Act
of 1974 (19 U.S.C. 2251 et seq.).
(4) TERMINATION.—This subsection shall cease
to apply on the date that is 12 years after the date
on which the Agreement enters into force.
(5) TARIFF-RATE QUOTAS.—If an agricultural
safeguard good is subject to a tariff-rate quota, and
the in-quota duty rate for the good proclaimed pur-
suant to subsection (a) or (b) is zero, any additional
duty assessed under this subsection shall be applied
only to over-quota imports of the good.
(6) NOTICE.—Not later than 60 days after the
Secretary of the Treasury first assesses additional
duties on an agricultural safeguard good under this
subsection, the Secretary shall notify the Govern-
ment of Chile in writing of such action and shall
provide to the Government of Chile data supporting
the assessment of additional duties.
(7) MODIFICATION OF TRIGGER PRICES.—Not
later than 60 calendar days before agreeing with the
Government of Chile pursuant to article 3.18(2)(b)
of the Agreement on a modification to a trigger
price for a good listed in Annex 3.18 of the Agree-
ment, the President shall notify the Committees on
Ways and Means and Agriculture of the House of
Representatives and the Committees on Finance and
Agriculture of the Senate of the proposed modifica-
tion and the reasons therefor.
(8) DEFINITIONS.—In this subsection:
(A) AGRICULTURAL SAFEGUARD GOOD.—
The term ‘‘agricultural safeguard good’’ means
a good—
(i) that qualifies as an originating
good under section 202;
(ii) that is included in the United
States Agricultural Safeguard Product List
set forth in Annex 3.18 of the Agreement;
and
(iii) for which a claim for preferential
tariff treatment under the Agreement has
been made.
(B) F.O.B.—The term ‘‘F.O.B.’’ means
free on board, regardless of the mode of trans-
portation, at the point of direct shipment by the
seller to the buyer.
(C) UNIT IMPORT PRICE.—The term ‘‘unit
import price’’ means the price expressed in dol-
lars per kilogram.
(d) CONVERSION TO AD VALOREM RATES.—For pur-
poses of subsections (a) and (b), with respect to any good
for which the base rate in the Schedule of the United
States to Annex 3.3 of the Agreement is a specific or com-
pound rate of duty, the President may substitute for the
base rate an ad valorem rate that the President deter-
mines to be equivalent to the base rate.
SEC. 202. RULES OF ORIGIN.
(a) ORIGINATING GOODS.—
(1) IN
GENERAL.—For purposes of this Act
and for purposes of implementing the tariff treat-
ment provided for under the Agreement, except as
otherwise provided in this section, a good is an origi-
nating good if—
(A) the good is wholly obtained or pro-
duced entirely in the territory of Chile, the
United States, or both;
(B) the good—
(i) is produced entirely in the territory
of Chile, the United States, or both, and
(I) each of the nonoriginating
materials used in the production of
the good undergoes an applicable
change in tariff classification specified
in Annex 4.1 of the Agreement, or
(II) the good otherwise satisfies
any applicable regional value-content
or other requirements specified in
Annex 4.1 of the Agreement; and
(ii) satisfies all other applicable re-
quirements of this section; or
(C) the good is produced entirely in the
territory of Chile, the United States, or both,
exclusively from materials described in subpara-
graph (A) or (B).
(2) SIMPLE
COMBINATION
OR
MERE
DILU-
TION.—A good shall not be considered to be an orig-
inating good and a material shall not be considered
to be an originating material by virtue of having
undergone—
(A) simple combining or packaging oper-
ations; or
(B) mere dilution with water or another
substance that does not materially alter the
characteristics of the good or material.
(b) DE MINIMIS AMOUNTS OF NONORIGINATING MA-
TERIALS.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), a good that does not undergo a
change in tariff classification pursuant to Annex 4.1
of the Agreement is an originating good if—
(A) the value of all nonoriginating mate-
rials that are used in the production of the good
and do not undergo the applicable change in
tariff classification does not exceed 10 percent
of the adjusted value of the good;
(B) the value of such nonoriginating mate-
rials is included in the value of nonoriginating
materials for any applicable regional value-con-
tent requirement; and