H. R. 3080 
One Hundred Twelfth Congress 
of the 
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Wednesday, 
the fifth day of January, two thousand and eleven 
An Act 
To implement the United States–Korea Free Trade Agreement. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘United States– 
Korea Free Trade Agreement Implementation Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE 
AGREEMENT 
Sec. 101. Approval and entry into force of the Agreement. 
Sec. 102. Relationship of the Agreement to United States and State law. 
Sec. 103. Implementing actions in anticipation of entry into force and initial regula-
tions. 
Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed 
actions. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Arbitration of claims. 
Sec. 107. Effective dates; effect of termination. 
TITLE II—CUSTOMS PROVISIONS 
Sec. 201. Tariff modifications. 
Sec. 202. Rules of origin. 
Sec. 203. Customs user fees. 
Sec. 204. Disclosure of incorrect information; false certifications of origin; denial of 
preferential tariff treatment. 
Sec. 205. Reliquidation of entries. 
Sec. 206. Recordkeeping requirements. 
Sec. 207. Enforcement relating to trade in textile or apparel goods. 
Sec. 208. Regulations. 
TITLE III—RELIEF FROM IMPORTS 
Sec. 301. Definitions. 
Subtitle A—Relief From Imports Benefitting From the Agreement 
Sec. 311. Commencing of action for relief. 
Sec. 312. Commission action on petition. 
Sec. 313. Provision of relief. 
Sec. 314. Termination of relief authority. 
Sec. 315. Compensation authority. 
Sec. 316. Confidential business information. 
Subtitle B—Motor Vehicle Safeguard Measures 
Sec. 321. Motor vehicle safeguard measures. 
Subtitle C—Textile and Apparel Safeguard Measures 
Sec. 331. Commencement of action for relief.
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Sec. 332. Determination and provision of relief. 
Sec. 333. Period of relief. 
Sec. 334. Articles exempt from relief. 
Sec. 335. Rate after termination of import relief. 
Sec. 336. Termination of relief authority. 
Sec. 337. Compensation authority. 
Sec. 338. Confidential business information. 
Subtitle D—Cases Under Title II of the Trade Act of 1974 
Sec. 341. Findings and action on Korean articles. 
TITLE IV—PROCUREMENT 
Sec. 401. Eligible products. 
TITLE V—OFFSETS 
Sec. 501. Increase in penalty on paid preparers who fail to comply with earned in-
come tax credit due diligence requirements. 
Sec. 502. Requirement for prisons located in the United States to provide informa-
tion for tax administration. 
Sec. 503. Rate for merchandise processing fees. 
Sec. 504. Extension of customs user fees. 
Sec. 505. Time for payment of corporate estimated taxes. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to approve and implement the free trade agreement 
between the United States and Korea entered into under the 
authority of section 2103(b) of the Bipartisan Trade Promotion 
Authority Act of 2002 (19 U.S.C. 3803(b)); 
(2) to secure the benefits of the agreement entered into 
pursuant to an exchange of letters between the United States 
and the Government of Korea on February 10, 2011; 
(3) to strengthen and develop economic relations between 
the United States and Korea for their mutual benefit; 
(4) to establish free trade between the United States and 
Korea through the reduction and elimination of barriers to 
trade in goods and services and to investment; and 
(5) to lay the foundation for further cooperation to expand 
and enhance the benefits of the Agreement. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) AGREEMENT.—The term ‘‘Agreement’’ means the United 
States–Korea Free Trade Agreement approved by Congress 
under section 101(a)(1). 
(2) COMMISSION.—The term ‘‘Commission’’ means the 
United States International Trade Commission. 
(3) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff 
Schedule of the United States. 
(4) KOREA.—The term ‘‘Korea’’ means the Republic of 
Korea. 
(5) TEXTILE
OR
APPAREL
GOOD.—The term ‘‘textile or 
apparel good’’ means a good listed in the Annex to the Agree-
ment on Textiles and Clothing referred to in section 101(d)(4) 
of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
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TITLE I—APPROVAL OF, AND GENERAL 
PROVISIONS 
RELATING 
TO, 
THE 
AGREEMENT 
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT. 
(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRA-
TIVE ACTION.—Pursuant to section 2105 of the Bipartisan Trade 
Promotion Authority Act of 2002 (19 U.S.C. 3805) and section 
151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress approves— 
(1) the United States–Korea Free Trade Agreement entered 
into on June 30, 2007, with the Government of Korea, and 
submitted to Congress on October 3, 2011; and 
(2) the statement of administrative action proposed to 
implement the Agreement that was submitted to Congress on 
October 3, 2011. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.— 
At such time as the President determines that Korea has taken 
measures necessary to comply with those provisions of the Agree-
ment that are to take effect on the date on which the Agreement 
enters into force, the President is authorized to exchange notes 
with the Government of Korea providing for the entry into force, 
on or after January 1, 2012, of the Agreement with respect to 
the United States. 
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES 
AND STATE LAW. 
(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.— 
(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provi-
sion of the Agreement, nor the application of any such provision 
to any person or circumstance, which is inconsistent with any 
law of the United States shall have effect. 
(2) CONSTRUCTION.—Nothing in this Act shall be con-
strued— 
(A) to amend or modify any law of the United States, 
or 
(B) to limit any authority conferred under any law 
of the United States, 
unless specifically provided for in this Act. 
(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.— 
(1) LEGAL CHALLENGE.—No State law, or the application 
thereof, may be declared invalid as to any person or cir-
cumstance on the ground that the provision or application 
is inconsistent with the Agreement, except in an action brought 
by the United States for the purpose of declaring such law 
or application invalid. 
(2) DEFINITION OF STATE LAW.—For purposes of this sub-
section, the term ‘‘State law’’ includes— 
(A) any law of a political subdivision of a State; and 
(B) any State law regulating or taxing the business 
of insurance. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REM-
EDIES.—No person other than the United States— 
(1) shall have any cause of action or defense under the 
Agreement or by virtue of congressional approval thereof; or
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(2) may challenge, in any action brought under any provi-
sion of law, any action or inaction by any department, agency, 
or other instrumentality of the United States, any State, or 
any political subdivision of a State, on the ground that such 
action or inaction is inconsistent with the Agreement. 
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 
FORCE AND INITIAL REGULATIONS. 
(a) IMPLEMENTING ACTIONS.— 
(1) PROCLAMATION AUTHORITY.—After the date of the enact-
ment of this Act— 
(A) the President may proclaim such actions, and 
(B) other appropriate officers of the United States 
Government may issue such regulations, 
as may be necessary to ensure that any provision of this Act, 
or amendment made by this Act, that takes effect on the 
date on which the Agreement enters into force is appropriately 
implemented on such date, but no such proclamation or regula-
tion may have an effective date earlier than the date on which 
the Agreement enters into force. 
(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.— 
Any action proclaimed by the President under the authority 
of this Act that is not subject to the consultation and layover 
provisions under section 104 may not take effect before the 
15th day after the date on which the text of the proclamation 
is published in the Federal Register. 
(3) WAIVER OF 15-DAY RESTRICTION.—The 15-day restriction 
contained in paragraph (2) on the taking effect of proclaimed 
actions is waived to the extent that the application of such 
restriction would prevent the taking effect on the date on 
which the Agreement enters into force of any action proclaimed 
under this section. 
(b) INITIAL
REGULATIONS.—Initial regulations necessary or 
appropriate to carry out the actions required by or authorized 
under this Act or proposed in the statement of administrative 
action submitted under section 101(a)(2) to implement the Agree-
ment shall, to the maximum extent feasible, be issued within 1 
year after the date on which the Agreement enters into force. 
In the case of any implementing action that takes effect on a 
date after the date on which the Agreement enters into force, 
initial regulations to carry out that action shall, to the maximum 
extent feasible, be issued within 1 year after such effective date. 
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFEC-
TIVE DATE OF, PROCLAIMED ACTIONS. 
If a provision of this Act provides that the implementation 
of an action by the President by proclamation is subject to the 
consultation and layover requirements of this section, such action 
may be proclaimed only if— 
(1) the President has obtained advice regarding the pro-
posed action from— 
(A) the appropriate advisory committees established 
under section 135 of the Trade Act of 1974 (19 U.S.C. 
2155); and 
(B) the Commission; 
(2) the President has submitted to the Committee on 
Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a report that sets forth—
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(A) the action proposed to be proclaimed and the rea-
sons therefor; and 
(B) the advice obtained under paragraph (1); 
(3) a period of 60 calendar days, beginning on the first 
day on which the requirements set forth in paragraphs (1) 
and (2) have been met, has expired; and 
(4) the President has consulted with the committees 
referred to in paragraph (2) regarding the proposed action 
during the period referred to in paragraph (3). 
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS. 
(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—The President 
is authorized to establish or designate within the Department of 
Commerce an office that shall be responsible for providing adminis-
trative assistance to panels established under chapter 22 of the 
Agreement. The office shall not be considered to be an agency 
for purposes of section 552 of title 5, United States Code. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for each fiscal year after fiscal year 2011 to 
the Department of Commerce up to $750,000 for the establishment 
and operations of the office established or designated under sub-
section (a) and for the payment of the United States share of 
the expenses of panels established under chapter 22 of the Agree-
ment. 
SEC. 106. ARBITRATION OF CLAIMS. 
The United States is authorized to resolve any claim against 
the United States covered by article 11.16.1(a)(i)(C) or article 
11.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 
Dispute Settlement procedures set forth in section B of chapter 
11 of the Agreement. 
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 
(a) EFFECTIVE DATES.—Except as provided in subsection (b), 
this Act and the amendments made by this Act take effect on 
the date on which the Agreement enters into force. 
(b) EXCEPTIONS.— 
(1) IN GENERAL.—Sections 1 through 3, section 207(g), this 
title, and title V take effect on the date of the enactment 
of this Act. 
(2) CERTAIN AMENDATORY PROVISIONS.—The amendments 
made by sections 203, 204, 206, and 401 of this Act take 
effect on the date of the enactment of this Act and apply 
with respect to Korea on the date on which the Agreement 
enters into force. 
(c) TERMINATION OF THE AGREEMENT.—On the date on which 
the Agreement terminates, this Act (other than this subsection 
and title V) and the amendments made by this Act (other than 
the amendments made by title V) shall cease to have effect. 
TITLE II—CUSTOMS PROVISIONS 
SEC. 201. TARIFF MODIFICATIONS. 
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.— 
The President may proclaim— 
(1) such modifications or continuation of any duty, 
(2) such continuation of duty-free or excise treatment, or
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(3) such additional duties, 
as the President determines to be necessary or appropriate to 
carry out or apply articles 2.3, 2.5, and 2.6, and Annex 2-B, Annex 
4-B, and Annex 22-A, of the Agreement. 
(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation 
and layover provisions of section 104, the President may proclaim— 
(1) such modifications or continuation of any duty, 
(2) such modifications as the United States may agree 
to with Korea regarding the staging of any duty treatment 
set forth in Annex 2-B of the Agreement, 
(3) such continuation of duty-free or excise treatment, or 
(4) such additional duties, 
as the President determines to be necessary or appropriate to 
maintain the general level of reciprocal and mutually advantageous 
concessions with respect to Korea provided for by the Agreement. 
(c) CONVERSION TO AD VALOREM RATES.—For purposes of sub-
sections (a) and (b), with respect to any good for which the base 
rate in the Schedule of the United States to Annex 2-B of the 
Agreement is a specific or compound rate of duty, the President 
may substitute for the base rate an ad valorem rate that the 
President determines to be equivalent to the base rate. 
(d) TARIFF TREATMENT OF MOTOR VEHICLES.—The President 
may proclaim the following tariff treatment with respect to the 
following motor vehicles of Korea: 
(1) CERTAIN PASSENGER CARS.—In the case of originating 
goods of Korea classifiable under subheading 8703.10.10, 
8703.10.50, 8703.21.00, 8703.22.00, 8703.23.00, 8703.24.00, 
8703.31.00, 8703.32.00, or 8703.33.00 of the HTS that are 
entered, or withdrawn from warehouse for consumption— 
(A) the rate of duty for such goods shall be 2.5 percent 
for year 1 of the Agreement through year 4 of the Agree-
ment; and 
(B) such goods shall be free of duty for each year 
thereafter. 
(2) ELECTRIC MOTOR VEHICLES.—In the case of originating 
goods of Korea classifiable under subheading 8703.90.00 of 
the HTS that are entered, or withdrawn from warehouse for 
consumption— 
(A) the rate of duty for such goods shall be— 
(i) 2.0 percent for year 1 of the Agreement; 
(ii) 1.5 percent for year 2 of the Agreement; 
(iii) 1.0 percent for year 3 of the Agreement; and 
(iv) 0.5 percent for year 4 of the Agreement; and 
(B) such goods shall be free of duty for each year 
thereafter. 
(3) CERTAIN TRUCKS.—In the case of originating goods of 
Korea classifiable under subheading 8704.21.00, 8704.22.50, 
8704.23.00, 8704.31.00, 8704.32.00, or 8704.90.00 of the HTS 
that are entered, or withdrawn from warehouse for consump-
tion— 
(A) the rate of duty for such goods shall be— 
(i) 25 percent for year 1 of the Agreement through 
year 7 of the Agreement; 
(ii) 16.6 percent for year 8 of the Agreement; and 
(iii) 8.3 percent for year 9 of the Agreement; and 
(B) such goods shall be free of duty for each year 
thereafter.
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(4) DEFINITIONS.—In this subsection— 
(A) the term ‘‘year 1 of the Agreement’’ means the 
period beginning on the date, in a calendar year, on which 
the Agreement enters into force and ending on December 
31 of that calendar year; and 
(B) the terms ‘‘year 2 of the Agreement’’, ‘‘year 3 of 
the Agreement’’, ‘‘year 4 of the Agreement’’, ‘‘year 5 of 
the Agreement’’, ‘‘year 6 of the Agreement’’, ‘‘year 7 of 
the Agreement’’, ‘‘year 8 of the Agreement’’, and ‘‘year 
9 of the Agreement’’ mean the second, third, fourth, fifth, 
sixth, seventh, eighth, and ninth calendar years, respec-
tively, in which the Agreement is in force. 
SEC. 202. RULES OF ORIGIN. 
(a) APPLICATION AND INTERPRETATION.—In this section: 
(1) TARIFF CLASSIFICATION.—The basis for any tariff classi-
fication is the HTS. 
(2) REFERENCE TO HTS.—Whenever in this section there 
is a reference to a chapter, heading, or subheading, such ref-
erence shall be a reference to a chapter, heading, or subheading 
of the HTS. 
(3) COST OR VALUE.—Any cost or value referred to in this 
section shall be recorded and maintained in accordance with 
the generally accepted accounting principles applicable in the 
territory of the country in which the good is produced (whether 
Korea or the United States). 
(b) ORIGINATING GOODS.—For purposes of this Act and for 
purposes of implementing the preferential tariff treatment provided 
for under the Agreement, except as otherwise provided in this 
section, a good is an originating good if— 
(1) the good is a good wholly obtained or produced entirely 
in the territory of Korea, the United States, or both; 
(2) the good— 
(A) is produced entirely in the territory of Korea, 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- 
A or Annex 6-A of the Agreement; or 
(ii) the good otherwise satisfies any applicable 
regional value-content or other requirements specified 
in Annex 4-A or Annex 6-A of the Agreement; and 
(B) satisfies all other applicable requirements of this 
section; or 
(3) the good is produced entirely in the territory of Korea, 
the United States, or both, exclusively from materials described 
in paragraph (1) or (2). 
(c) REGIONAL VALUE-CONTENT.— 
(1) IN
GENERAL.—For purposes of subsection (b)(2), the 
regional value-content of a good referred to in Annex 6-A of 
the Agreement, except for goods to which paragraph (4) applies, 
shall be calculated by the importer, exporter, or producer of 
the good, on the basis of the build-down method described 
in paragraph (2) or the build-up method described in paragraph 
(3). 
(2) BUILD-DOWN METHOD.—
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(A) IN GENERAL.—The regional value-content of a good 
may be calculated on the basis of the following build- 
down method: 
AV¥VNM 
RVC = 
————— 
× 100 
AV 
(B) DEFINITIONS.—In subparagraph (A): 
(i) RVC.—The term ‘‘RVC’’ means the regional 
value-content of the good, expressed as a percentage. 
(ii) AV.—The term ‘‘AV’’ means the adjusted value 
of the good. 
(iii) VNM.—The term ‘‘VNM’’ means the value of 
nonoriginating materials, other than indirect mate-
rials, that are acquired and used by the producer in 
the production of the good, but does not include the 
value of a material that is self-produced. 
(3) BUILD-UP METHOD.— 
(A) IN GENERAL.—The regional value-content of a good 
may be calculated on the basis of the following build- 
up method: 
VOM 
RVC = 
————— 
× 100 
AV 
(B) DEFINITIONS.—In subparagraph (A): 
(i) RVC.—The term ‘‘RVC’’ means the regional 
value-content of the good, expressed as a percentage. 
(ii) AV.—The term ‘‘AV’’ means the adjusted value 
of the good. 
(iii) VOM.—The term ‘‘VOM’’ means the value of 
originating materials, other than indirect materials, 
that are acquired or self-produced, and used by the 
producer in the production of the good. 
(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE GOODS.— 
(A) IN
GENERAL.—For purposes of subsection (b)(2), 
the regional value-content of an automotive good referred 
to in Annex 6-A of the Agreement may be calculated by 
the importer, exporter, or producer of the good on the 
basis of the build-down method described in paragraph 
(2), the build-up method described in paragraph (3), or 
the following net cost method: 
NC¥VNM 
RVC = 
————— 
× 100 
NC 
(B) DEFINITIONS.—In subparagraph (A): 
(i) AUTOMOTIVE
GOOD.—The term ‘‘automotive 
good’’ means a good provided for in any of subheadings 
8407.31 through 8407.34, subheading 8408.20, heading 
8409, or any of headings 8701 through 8708. 
(ii) RVC.—The term ‘‘RVC’’ means the regional 
value-content of the automotive good, expressed as a 
percentage. 
(iii) NC.—The term ‘‘NC’’ means the net cost of 
the automotive good. 
(iv) VNM.—The term ‘‘VNM’’ means the value of 
nonoriginating materials, other than indirect mate-
rials, that are acquired and used by the producer in
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the production of the automotive good, but does not 
include the value of a material that is self-produced. 
(C) MOTOR VEHICLES.— 
(i) BASIS OF CALCULATION.—For purposes of deter-
mining the regional value-content under subparagraph 
(A) for an automotive good that is a motor vehicle 
provided for in any of headings 8701 through 8705, 
an importer, exporter, or producer may average the 
amounts calculated under the net cost formula con-
tained in subparagraph (A), over the producer’s fiscal 
year— 
(I) with respect to all motor vehicles in any 
one of the categories described in clause (ii); or 
(II) with respect to all motor vehicles in any 
such category that are exported to the territory 
of Korea or the United States. 
(ii) CATEGORIES.—A category is described in this 
clause if it— 
(I) is the same model line of motor vehicles, 
is in the same class of motor vehicles, and is 
produced in the same plant in the territory of 
Korea or the United States, as the good described 
in clause (i) for which regional value-content is 
being calculated; 
(II) is the same class of motor vehicles, and 
is produced in the same plant in the territory 
of Korea or the United States, as the good 
described in clause (i) for which regional value- 
content is being calculated; or 
(III) is the same model line of motor vehicles 
produced in the territory of Korea or the United 
States as the good described in clause (i) for which 
regional value-content is being calculated. 
(D) OTHER AUTOMOTIVE GOODS.—For purposes of deter-
mining the regional value-content under subparagraph (A) 
for automotive materials provided for in any of subheadings 
8407.31 through 8407.34, in subheading 8408.20, or in 
heading 8409, 8706, 8707, or 8708, that are produced in 
the same plant, an importer, exporter, or producer may— 
(i) average the amounts calculated under the net 
cost formula contained in subparagraph (A) over— 
(I) the fiscal year of the motor vehicle producer 
to whom the automotive goods are sold, 
(II) any quarter or month, or 
(III) the fiscal year of the producer of such 
goods, 
if the goods were produced during the fiscal year, 
quarter, or month that is the basis for the calculation; 
(ii) determine the average referred to in clause 
(i) separately for such goods sold to 1 or more motor 
vehicle producers; or 
(iii) make a separate determination under clause 
(i) or (ii) for such goods that are exported to the terri-
tory of Korea or the United States. 
(E) CALCULATING NET COST.—The importer, exporter, 
or producer of an automotive good shall, consistent with 
the provisions regarding allocation of costs provided for