II 
Calendar No. 226
108TH CONGRESS 
1ST SESSION H. R. 2739
IN THE SENATE OF THE UNITED STATES 
JULY 24 (legislative day, JULY 21), 2003
Received; read twice and placed on the calendar 
AN ACT 
To implement the United States-Singapore Free Trade 
Agreement.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘United States-Singapore Free Trade Agreement Imple-
mentation Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
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. Consultation and layover provisions for, and effective date of, pro-
claimed actions. 
Sec. 104. Implementing actions in anticipation of entry into force and initial 
regulations. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Arbitration of certain 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. 
Sec. 205. Enforcement relating to trade in textile and apparel goods. 
Sec. 206. Regulations. 
TITLE III—RELIEF FROM IMPORTS 
Sec. 301. Definitions. 
Subtitle A—Relief From Imports Benefiting From the Agreement 
Sec. 311. Commencing of action for relief. 
Sec. 312. Commission action on petition. 
Sec. 313. Provision of relief. 
Sec. 314. Termination of relief authority. 
Sec. 315. Compensation authority. 
Sec. 316. Confidential business information. 
Subtitle B—Textile and Apparel Safeguard Measures 
Sec. 321. Commencement of action for relief. 
Sec. 322. Determination and provision of relief. 
Sec. 323. Period of relief. 
Sec. 324. Articles exempt from relief.
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Sec. 325. Rate after termination of import relief. 
Sec. 326. Termination of relief authority. 
Sec. 327. Compensation authority. 
Sec. 328. Business confidential information. 
Subtitle C—Cases Under Title II of the Trade Act of 1974
Sec. 331. Findings and action on goods from Singapore. 
TITLE IV—TEMPORARY ENTRY OF BUSINESS PERSONS 
Sec. 401. Nonimmigrant traders and investors. 
Sec. 402. Nonimmigrant professionals.
SEC. 2. PURPOSES. 
The purposes of this Act are—
(1) to approve and implement the Free Trade 
Agreement between the United States and the Re-
public of Singapore entered into under the authority 
of section 2103(b) of the Bipartisan Trade Pro-
motion Authority Act of 2002; 
(2) to strengthen and develop economic rela-
tions between the United States and Singapore for 
their mutual benefit; 
(3) to establish free trade between the 2 nations 
through the reduction and elimination of barriers to 
trade in goods and services and to investment; and 
(4) to lay the foundation for further coopera-
tion to expand and enhance the benefits of such 
Agreement. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) 
AGREEMENT.—The 
term 
‘‘Agreement’’ 
means the United States-Singapore Free Trade
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Agreement approved by Congress under section 
101(a). 
(2) HTS.—The term ‘‘HTS’’ means the Har-
monized Tariff Schedule of the United States. 
TITLE 
I—APPROVAL 
OF, 
AND 
GENERAL 
PROVISIONS 
RE-
LATING TO, THE AGREEMENT 
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE 
AGREEMENT. 
(a) APPROVAL OF AGREEMENT AND STATEMENT OF 
ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 
the Bipartisan Trade Promotion Authority Act of 2002 
(19 U.S.C. 3805) and section 151 of the Trade Act of 
1974 (19 U.S.C. 2191), Congress approves—
(1) the United States-Singapore Free Trade 
Agreement entered into on May 6, 2003, with the 
Government of Singapore and submitted to Congress 
on July 15, 2003; and 
(2) the statement of administrative action pro-
posed to implement the Agreement that was sub-
mitted to Congress on July 15, 2003. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE 
AGREEMENT.—At such time as the President determines 
that Singapore has taken measures necessary to bring it 
into compliance with those provisions of the Agreement
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that take effect on the date on which the Agreement enters 
into force, the President is authorized to exchange notes
with the Government of Singapore providing for the entry 
into force, on or after January 1, 2004, of the Agreement 
for the United States. 
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 
STATES AND STATE LAW. 
(a) RELATIONSHIP
OF AGREEMENT
TO UNITED 
STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CON-
FLICT.—No provision of the Agreement, nor the ap-
plication of any such provision to any person or cir-
cumstance, which is inconsistent with any law of the 
United States shall have effect. 
(2) CONSTRUCTION.—Nothing in this Act shall 
be construed—
(A) to amend or modify any law of the 
United States, or 
(B) to limit any authority conferred under 
any law of the United States, 
unless specifically provided for in this Act. 
(b) RELATIONSHIP
OF
AGREEMENT
TO
STATE 
LAW.—
(1) LEGAL CHALLENGE.—No State law, or the 
application thereof, may be declared invalid as to
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any person or circumstance on the ground that the 
provision or application is inconsistent with the 
Agreement, except in an action brought by the 
United States for the purpose of declaring such law 
or application invalid. 
(2) DEFINITION OF STATE LAW.—For purposes 
of this subsection, the term ‘‘State law’’ includes—
(A) any law of a political subdivision of a 
State; and 
(B) any State law regulating or taxing the 
business of insurance. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRI-
VATE REMEDIES.—No person other than the United 
States—
(1) shall have any cause of action or defense 
under the Agreement or by virtue of congressional 
approval thereof; or 
(2) may challenge, in any action brought under 
any provision of law, any action or inaction by any 
department, agency, or other instrumentality of the 
United States, any State, or any political subdivision 
of a State on the ground that such action or inaction 
is inconsistent with the Agreement.
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SEC. 103. CONSULTATION AND LAYOVER PROVISIONS FOR, 
AND EFFECTIVE DATE OF, PROCLAIMED AC-
TIONS. 
(a) 
CONSULTATION
AND
LAYOVER
REQUIRE-
MENTS.—If a provision of this Act provides that the imple-
mentation of an action by the President by proclamation 
is subject to the consultation and layover requirements of 
this section, such action may be proclaimed only if—
(1) the President has obtained advice regarding 
the proposed action from—
(A) the appropriate advisory committees 
established under section 135 of the Trade Act 
of 1974; and 
(B) the United States International Trade 
Commission; 
(2) the President has submitted a report to the 
Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Rep-
resentatives that sets forth—
(A) the action proposed to be proclaimed 
and the reasons 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 of para-
graphs (1) and (2) have been met has expired; and
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(4) the President has consulted with such Com-
mittees regarding the proposed action during the pe-
riod referred to in paragraph (3). 
(b) EFFECTIVE DATE OF CERTAIN PROCLAIMED AC-
TIONS.—Any action proclaimed by the President under the 
authority of this Act that is not subject to the consultation 
and layover provisions under subsection (a) may not take 
effect before the 15th day after the date on which the text 
of the proclamation is published in the Federal Register. 
SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF 
ENTRY INTO FORCE AND INITIAL REGULA-
TIONS. 
(a) IMPLEMENTING ACTIONS.—
(1) PROCLAMATION
AUTHORITY.—After the 
date of enactment of this Act—
(A) the President may proclaim such ac-
tions, and 
(B) other appropriate officers of the 
United States Government may issue such reg-
ulations—
as may be necessary to ensure that any provision of 
this Act, or amendment made by this Act, that takes 
effect on the date the Agreement enters into force 
is appropriately implemented on such date, but no
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such proclamation or regulation may have an effec-
tive date earlier than the date of entry into force. 
(2) WAIVER OF 15-DAY RESTRICTION.—The 15-
day restriction in section 103(b) 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 the Agreement enters into 
force of any action proclaimed under this section. 
(b) INITIAL REGULATIONS.—Initial regulations nec-
essary 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 Agreement shall, to the max-
imum extent feasible, be issued within 1 year after the 
date of entry into force of the Agreement. In the case of 
any implementing action that takes effect on a date after 
the date of entry into force of the Agreement, initial regu-
lations to carry out that action shall, to the maximum ex-
tent feasible, be issued within 1 year after such effective 
date. 
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO-
CEEDINGS. 
(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—
The President is authorized to establish or designate with-
in the Department of Commerce an office that shall be
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SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 
(a) EFFECTIVE DATES.—Except as provided in sub-
section (b), the provisions of this Act and the amendments 
made by this Act take effect on the date the Agreement 
enters into force. 
(b) EXCEPTIONS.—
(1) Sections 1 through 3 and this title take ef-
fect on the date of enactment of this Act. 
(2) Section 205 takes effect on the date on 
which the textile and apparel provisions of the 
Agreement take effect pursuant to article 5.10 of 
the Agreement. 
(c) TERMINATION
OF
THE AGREEMENT.—On the 
date on which the Agreement ceases to be in force, the 
provisions of this Act (other than this subsection) and the 
amendments made by this Act shall cease to be effective. 
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 
(3) such additional duties—
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as the President determines to be necessary or appropriate 
to carry out or apply articles 2.2, 2.5, 2.6, and 2.12 and 
Annex 2B of the Agreement. 
(b) OTHER TARIFF MODIFICATIONS.—Subject to the 
consultation and layover provisions of section 103(a), the 
President may proclaim—
(1) such modifications or continuation of any 
duty, 
(2) such modifications as the United States 
may agree to with Singapore regarding the staging 
of any duty treatment set forth in Annex 2B 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 Singapore pro-
vided for by the Agreement. 
(c) CONVERSION TO AD VALOREM RATES.—For pur-
poses of subsections (a) and (b), with respect to any good 
for which the base rate in the Schedule of the United 
States set forth in Annex 2B of the Agreement is a spe-
cific or compound rate of duty, the President may sub-
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stitute for the base rate an ad valorem rate that the Presi-
dent determines to be equivalent to the base rate. 
SEC. 202. RULES OF ORIGIN. 
(a) ORIGINATING GOODS.—For purposes of this Act 
and for purposes of implementing the tariff treatment pro-
vided for under the Agreement, except as otherwise pro-
vided in this section, a good is an originating good if—
(1) the good is wholly obtained or produced en-
tirely in the territory of Singapore, the United 
States, or both; 
(2) each nonoriginating material used in the 
production of the good—
(A) undergoes an applicable change in tar-
iff classification set out in Annex 3A of the 
Agreement as a result of production occurring 
entirely in the territory of Singapore, the 
United States, or both; or 
(B) if no change in tariff classification is 
required, the good otherwise satisfies the appli-
cable requirements of such Annex; or 
(3) the good itself, as imported, is listed in 
Annex 3B of the Agreement and is imported into the 
territory of the United States from the territory of 
Singapore.
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(b) DE MINIMIS AMOUNTS OF NONORIGINATING MA-
TERIALS.—
(1) IN GENERAL.—Except as provided for in 
paragraphs (2) and (3), a good shall be considered 
to be an originating good if—
(A) the value of all nonoriginating mate-
rials used in the production of the good that do 
not undergo the required change in tariff classi-
fication under Annex 3A of the Agreement does 
not exceed 10 percent of the adjusted value of 
the good; 
(B) if the good is subject to a regional 
value-content requirement, the value of such 
nonoriginating materials is taken into account 
in calculating the regional value-content of the 
good; and 
(C) the good satisfies all other applicable 
requirements 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 in subheading 
1901.90 of the HTS that is used in the produc-
tion of a good provided for in chapter 4 of the 
HTS.
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(B) A nonoriginating material provided for 
in chapter 4 of the HTS or in subheading 
1901.90 of the HTS that is used in the produc-
tion of a good provided for in heading 2105 or 
in any of subheadings 1901.10, 1901.20, 
1901.90, 2106.90, 2202.90, and 2309.90 of the 
HTS.
(C) A nonoriginating material provided for 
in heading 0805, or any of subheadings 
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 or 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 heading
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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 3A of the Agreement shall be considered
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to be an originating good if the total weight of 
all such fibers or yarns in that component is 
not more than 7 percent of the total weight of 
that component. 
(B) 
CERTAIN
TEXTILE
OR
APPAREL 
GOODS.—
(i) 
TREATMENT
AS
ORIGINATING 
GOOD.—A textile or apparel good con-
taining elastomeric yarns in the component 
of the good that determines the tariff clas-
sification of the good shall be considered to 
be an originating good only if such yarns 
are wholly formed in the territory of Singa-
pore or the United States. 
(ii) DEFINITION OF TEXTILE OR AP-
PAREL GOOD.—For purposes of this sub-
paragraph, the term ‘‘textile or apparel 
good’’ means a product 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)). 
(c) ACCUMULATION.—
(1) ORIGINATING
GOODS
INCORPORATED
IN 
GOODS OF OTHER COUNTRY.—Originating materials
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from the territory of either Singapore or the United 
States that are used in the production of a good in 
the territory of the other country shall be considered 
to originate in the territory of the other country. 
(2) MULTIPLE PROCEDURES.—A good that is 
produced in the territory of Singapore, the United 
States, or both, by 1 or more producers is an origi-
nating good if the good satisfies the requirements of 
subsection (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 3A of the Agreement shall be calculated, 
at the choice of the person claiming preferential tar-
iff 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 3A of the Agreement. 
(2) BUILD-DOWN METHOD.—
(A) IN GENERAL.—The regional value-con-
tent of a good may be calculated on the basis 
of the following build-down method:
AV–VNM
RVC = ———— × 100
AV
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(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 that are 
acquired and 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:
VOM
RVC = ———— × 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.
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(iii) The term ‘‘VOM’’ means the 
value of originating materials that are ac-
quired or self-produced and are 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 imported by 
the producer of the good, the adjusted value of 
the material; 
(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 adjusted value of the material; or 
(C) in the case of a material that is self-
produced, or in a case in which the relationship 
between the producer of the good and the seller 
of the material influenced the price actually 
paid or payable for the material, including a 
material obtained without charge, the sum of—
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production of the good, less the value of 
renewable scrap or by-product. 
(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 Singapore, 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 by-product. 
(iv) The cost of processing incurred in 
the territory of Singapore or the United
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States in the production of the nonorigi-
nating material. 
(v) The cost of originating materials 
used in the production of the nonorigi-
nating material in the territory of Singa-
pore or the United States. 
(f) ACCESSORIES, SPARE PARTS, OR TOOLS.—
(1) IN GENERAL.—Subject to paragraph (2), 
accessories, spare parts, or tools delivered with the 
good that form part of the good’s standard acces-
sories, 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 an applicable 
change in tariff classification set out in Annex 
3A of the Agreement. 
(2) CONDITIONS.—Paragraph (1) shall apply 
only if—
(A) the accessories, spare parts, or tools 
are not invoiced separately from the good; 
(B) the quantities and value of the acces-
sories, spare parts, or tools are customary for 
the good; and
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(C) if the good is subject to a regional 
value-content requirement, the value of the ac-
cessories, spare parts, or tools is taken into ac-
count as originating or nonoriginating mate-
rials, as the case may be, in calculating the re-
gional value-content of 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
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performed (whether Singapore 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 
fungible 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 
the nonoriginating materials used in the production of the 
good undergo the applicable change in tariff classification 
set out in Annex 3A 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 in which
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a good is packed for shipment shall be disregarded in de-
termining whether—
(1) the nonoriginating materials used in the 
production of a good undergo an applicable change 
in tariff classification set out in Annex 3A 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, and its value shall be the 
cost registered in the accounting records of the producer 
of the good. 
(k) THIRD COUNTRY OPERATIONS.—A good shall not 
be considered to be an originating good by reason of hav-
ing undergone production that satisfies the requirements 
of subsection (a) if, subsequent to that production, the 
good undergoes further production or any other operation 
outside the territories of Singapore and the United States, 
other than unloading, reloading, or any other operation 
necessary to preserve it in good condition or to transport 
the good to the territory of Singapore or the United 
States. 
(l) SPECIAL RULE FOR APPAREL GOODS LISTED IN 
CHAPTER 61 OR 62 OF THE HTS.—
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(1) IN GENERAL.—An apparel good listed in 
chapter 61 or 62 of the HTS shall be considered to 
be an originating good if it is both cut (or knit to 
shape) and sewn or otherwise assembled in the terri-
tory of Singapore, the United States, or both, from 
fabric or yarn, regardless of origin, designated in the 
manner described in paragraph (2) as fabric or yarn 
not available in commercial quantities in a timely 
manner in the United States. 
(2) DESIGNATION
OF
CERTAIN
FABRIC
AND 
YARN.—The designation referred to in paragraph 
(1) means a designation made in a notice published 
in the Federal Register on or before November 15, 
2002, identifying apparel goods made from fabric or 
yarn eligible for entry into the United States under 
subheading 9819.11.24 or 9820.11.27 of the HTS. 
For purposes of this subsection, a reference in the 
notice to fabric or yarn formed in the United States 
is deemed to include fabric or yarn formed in Singa-
pore. 
(m) APPLICATION AND INTERPRETATION.—In this 
section: 
(1) The basis for any tariff classification is the 
HTS.
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(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 Singapore or the United 
States). 
(n) DEFINITIONS.—In this section: 
(1) ADJUSTED
VALUE.—The term ‘‘adjusted 
value’’ means the value of a good determined under 
articles 1 through 8, article 15, and the cor-
responding interpretative 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 good from 
the country of exportation to the place of importa-
tion. 
(2) FUNGIBLE GOODS AND 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.
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(3) GENERALLY ACCEPTED ACCOUNTING PRIN-
CIPLES.—The term ‘‘generally accepted accounting 
principles’’ means the recognized consensus or sub-
stantial authoritative support in the territory of 
Singapore or the United States, as the case may be, 
with respect to the recording of revenues, expenses, 
costs, and assets and liabilities, the disclosure of in-
formation, and the preparation of financial state-
ments. The standards may encompass broad guide-
lines of general application as well as detailed stand-
ards, practices, and procedures. 
(4) GOODS WHOLLY OBTAINED OR PRODUCED 
ENTIRELY IN THE TERRITORY OF SINGAPORE, THE 
UNITED STATES, OR BOTH.—The term ‘‘goods whol-
ly obtained or produced entirely in the territory of 
Singapore, the United States, or both’’ means—
(A) mineral goods extracted in the terri-
tory of Singapore, the United States, or both; 
(B) vegetable goods, as such goods are de-
fined in the Harmonized System, harvested in 
the territory of Singapore, the United States, or 
both; 
(C) live animals born and raised in the ter-
ritory of Singapore, the United States, or both;
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(D) goods obtained from hunting, trap-
ping, fishing, or aquaculture conducted in the 
territory of Singapore, the United States, or 
both; 
(E) goods (fish, shellfish, and other marine 
life) taken from the sea by vessels registered or 
recorded with Singapore or the United States 
and flying the flag of that country; 
(F) goods produced exclusively from prod-
ucts referred to in subparagraph (E) on board 
factory ships registered or recorded with Singa-
pore or the United States and flying the flag of 
that country; 
(G) goods taken by Singapore or the 
United States, or a person of Singapore or the 
United States, from the seabed or beneath the 
seabed outside territorial waters, if Singapore 
or the United States has rights to exploit such 
seabed; 
(H) goods taken from outer space, if the 
goods are obtained by Singapore or the United 
States or a person of Singapore or the United 
States and not processed in the territory of a 
country other than Singapore or the United 
States;
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(I) waste and scrap derived from—
(i) production in the territory of 
Singapore, the United States, or both; or 
(ii) used goods collected in the terri-
tory of Singapore, the United States, or 
both, if such goods are fit only for the re-
covery of raw materials; 
(J) recovered goods derived in the territory 
of Singapore, the United States, or both, from 
used goods; or 
(K) goods produced in the territory of 
Singapore, the United States, or both, exclu-
sively—
(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). 
(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-
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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. 
(8) MATERIAL THAT IS SELF-PRODUCED.—The 
term ‘‘material that is self-produced’’ means a mate-
rial, such as a part or ingredient, produced by a pro-
ducer of a good and used by the producer in the pro-
duction of another good.
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produces or has produced are originating goods or 
products of Singapore, as the case may be. 
(b) KNOWING OR WILLFUL CIRCUMVENTION.—
(1) IN GENERAL.—If the President finds that 
an enterprise of Singapore has knowingly or willfully 
engaged in circumvention, the President may exclude 
from the customs territory of the United States tex-
tile and apparel goods produced or exported by the 
enterprise. An exclusion under this paragraph may 
be imposed on the date beginning on the date a find-
ing of knowing or willful circumvention is made and 
shall be in effect for a period not longer than the ap-
plicable period described in paragraph (2). 
(2) TIME PERIODS.—
(A) FIRST
FINDING.—With respect to a 
first finding under paragraph (1), the applica-
ble period is 6 months. 
(B) SECOND FINDING.—With respect to a 
second finding under paragraph (1), the appli-
cable period is 2 years. 
(C) THIRD AND SUBSEQUENT FINDING.—
With respect to a third or subsequent finding 
under paragraph (1), the applicable period is 2 
years. If, at the time of a third or subsequent 
finding, an exclusion is in effect as a result of