II 
112TH CONGRESS 
1ST SESSION H. R. 3080 
IN THE SENATE OF THE UNITED STATES 
OCTOBER 12, 2011 
Received 
AN ACT 
To implement the United States–Korea 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. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘United States–Korea Free Trade Agreement Implemen-
tation 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 
regulations. 
Sec. 104. Consultation and layover provisions for, and effective date of, pro-
claimed 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; de-
nial 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. 
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Subtitle C—Textile and Apparel Safeguard Measures 
Sec. 331. Commencement of action for relief. 
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 
income tax credit due diligence requirements. 
Sec. 502. Requirement for prisons located in the United States to provide infor-
mation 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 en-
tered 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 en-
tered into pursuant to an exchange of letters be-
tween the United States and the Government of 
Korea on February 10, 2011; 
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(3) to strengthen and develop economic rela-
tions 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 elimi-
nation of barriers to trade in goods and services and 
to investment; and 
(5) to lay the foundation for further coopera-
tion 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 Agree-
ment approved by Congress under section 101(a)(1). 
(2) COMMISSION.—The term ‘‘Commission’’ 
means the United States International Trade Com-
mission. 
(3) HTS.—The term ‘‘HTS’’ means the Har-
monized Tariff Schedule of the United States. 
(4) KOREA.—The term ‘‘Korea’’ means the Re-
public of Korea. 
(5) TEXTILE
OR
APPAREL
GOOD.—The term 
‘‘textile or apparel good’’ means a good listed in the 
Annex to the Agreement on Textiles and Clothing 
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referred to in section 101(d)(4) of the Uruguay 
Round Agreements Act (19 U.S.C. 3511(d)(4)). 
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–Korea Free Trade Agree-
ment entered into on June 30, 2007, with the Gov-
ernment of Korea, and submitted to Congress on 
October 3, 2011; and 
(2) the statement of administrative action pro-
posed to implement the Agreement that was sub-
mitted 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 Agreement that are to take effect 
on the date on which the Agreement enters into force, the 
President is authorized to exchange notes with the Gov-
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ernment 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 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 
any person or circumstance on the ground that the 
provision or application is inconsistent with the 
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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 inac-
tion is inconsistent with the Agreement. 
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 
ENTRY INTO FORCE AND INITIAL REGULA-
TIONS. 
(a) IMPLEMENTING ACTIONS.— 
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(1) PROCLAMATION
AUTHORITY.—After the 
date of the 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 on which the Agreement enters 
into force is appropriately implemented on such 
date, but no such proclamation or regulation 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 sec-
tion 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 
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prevent the taking effect on the date on which the 
Agreement enters into force of any action pro-
claimed 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 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 EFFECTIVE DATE OF, PROCLAIMED AC-
TIONS. 
If a provision of this Act provides that the implemen-
tation 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— 
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(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 Com-
mittee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives 
a report 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 set forth in 
paragraphs (1) and (2) have been met, has expired; 
and 
(4) the President has consulted with the com-
mittees referred to in paragraph (2) regarding the 
proposed action during the period referred to in 
paragraph (3). 
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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responsible for providing administrative assistance to pan-
els 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 of-
fice established or designated under subsection (a) and for 
the payment of the United States share of the expenses 
of panels established under chapter 22 of the Agreement. 
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 Agree-
ment, 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 sub-
section (b), this Act and the amendments made by this 
Act take effect on the date on which the Agreement enters 
into force. 
(b) EXCEPTIONS.— 
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(1) IN GENERAL.—Sections 1 through 3, sec-
tion 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 enact-
ment 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 
(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. 
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(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 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 2-B 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. 
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(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 sub-
heading 
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 en-
tered, or withdrawn from warehouse for consump-
tion— 
(A) the rate of duty for such goods shall 
be 2.5 percent for year 1 of the Agreement 
through year 4 of the Agreement; 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 sub-
heading 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; 
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(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 origi-
nating 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 en-
tered, 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 Agree-
ment 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. 
(4) DEFINITIONS.—In this subsection— 
(A) the term ‘‘year 1 of the Agreement’’ 
means the period beginning on the date, in a 
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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 Agree-
ment’’, ‘‘year 8 of the Agreement’’, and ‘‘year 
9 of the Agreement’’ mean the second, third, 
fourth, fifth, sixth, seventh, eighth, and ninth 
calendar years, respectively, in which the Agree-
ment is in force. 
SEC. 202. RULES OF ORIGIN. 
(a) APPLICATION
AND INTERPRETATION.—In this 
section: 
(1) TARIFF
CLASSIFICATION.—The basis for 
any tariff classification is the HTS. 
(2) REFERENCE
TO
HTS.—Whenever in this 
section there is a reference to a chapter, heading, or 
subheading, such reference shall be a reference to a 
chapter, heading, or subheading of the HTS. 
(3) COST OR VALUE.—Any cost or value re-
ferred to in this section shall be recorded and main-
tained in accordance with the generally accepted ac-
counting principles applicable in the territory of the 
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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 pro-
duced 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 mate-
rials 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 require-
ments of this section; or 
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(3) the good is produced entirely in the terri-
tory 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.— 
(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 
(B) DEFINITIONS.—In subparagraph (A): 
(i) RVC.—The term ‘‘RVC’’ means 
the regional value-content of the good, ex-
pressed 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 
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than indirect materials, 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-con-
tent 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, ex-
pressed 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 sub-
section (b)(2), the regional value-content of an 
automotive good referred to in Annex 6-A of 
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the Agreement may be calculated by the im-
porter, 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 auto-
motive 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 materials, that are acquired 
and used by the producer in the production 
of the automotive good, but does not in-
clude the value of a material that is self- 
produced. 
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(C) MOTOR VEHICLES.— 
(i) BASIS
OF
CALCULATION.—For 
purposes of determining 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 cal-
culated under the net cost formula con-
tained in subparagraph (A), over the pro-
ducer’s fiscal year— 
(I) with respect to all motor vehi-
cles in any one of the categories de-
scribed in clause (ii); or 
(II) with respect to all motor ve-
hicles in any such category that are 
exported to the territory of Korea or 
the United States. 
(ii) CATEGORIES.—A category is de-
scribed 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 de-
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scribed 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 terri-
tory 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 determining the regional value-con-
tent 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— 
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(I) the fiscal year of the motor 
vehicle producer to whom the auto-
motive goods are sold, 
(II) any quarter or month, or 
(III) the fiscal year of the pro-
ducer of such goods, 
if the goods were produced during the fis-
cal 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 territory of Korea or 
the United States. 
(E) CALCULATING
NET
COST.—The im-
porter, exporter, or producer of an automotive 
good shall, consistent with the provisions re-
garding allocation of costs provided for in gen-
erally accepted accounting principles, determine 
the net cost of the automotive good under sub-
paragraph (B) by— 
(i) calculating the total cost incurred 
with respect to all goods produced by the 
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producer of the automotive good, sub-
tracting any sales promotion, marketing, 
and after-sales service costs, royalties, 
shipping and packing costs, and nonallow-
able interest costs that are included in the 
total cost of all such goods, and then rea-
sonably allocating the resulting net cost of 
those goods to the automotive good; 
(ii) calculating the total cost incurred 
with respect to all goods produced by that 
producer, reasonably allocating the total 
cost to the automotive good, and then sub-
tracting any sales promotion, marketing, 
and after-sales service costs, royalties, 
shipping and packing costs, and nonallow-
able interest costs that are included in the 
portion of the total cost allocated to the 
automotive good; or 
(iii) reasonably allocating each cost 
that forms part of the total cost incurred 
with respect to the automotive good so that 
the aggregate of these costs does not in-
clude any sales promotion, marketing, and 
after-sales service costs, royalties, shipping 
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and packing costs, or nonallowable interest 
costs. 
(d) VALUE OF MATERIALS.— 
(1) IN GENERAL.—For the purpose of calcu-
lating the regional value-content of a good under 
subsection (c), and for purposes of applying the de 
minimis rules under subsection (f), the value of a 
material is— 
(A) in the case of a material that is im-
ported by the producer of the good, the ad-
justed value of the material; 
(B) in the case of a material acquired in 
the territory in which the good is produced, the 
value, determined in accordance with Articles 1 
through 8, Article 15, and the corresponding in-
terpretive notes, of the Agreement on Imple-
mentation of Article VII of the General Agree-
ment on Tariffs and Trade 1994 referred to in 
section 101(d)(8) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3511(d)(8)), as set forth 
in regulations promulgated by the Secretary of 
the Treasury providing for the application of 
such Articles in the absence of an importation 
by the producer; or 
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(C) in the case of a material that is self- 
produced, the sum of— 
(i) all expenses incurred in the pro-
duction of the material, including general 
expenses; and 
(ii) an amount for profit equivalent to 
the profit added in the normal course of 
trade. 
(2) FURTHER ADJUSTMENTS TO THE VALUE OF 
MATERIALS.— 
(A) ORIGINATING
MATERIAL.—The fol-
lowing expenses, if not included in the value of 
an originating material calculated under para-
graph (1), may be added to the value of the 
originating material: 
(i) The costs of freight, insurance, 
packing, and all other costs incurred in 
transporting the material within or be-
tween the territory of Korea, the United 
States, or both, to the location of the pro-
ducer. 
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of Korea, the United States, or both, 
other than duties or taxes that are waived, 
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refunded, refundable, or otherwise recover-
able, including credit against duty or tax 
paid or payable. 
(iii) The cost of waste and spoilage re-
sulting from the use of the material in the 
production of the good, less the value of 
renewable scrap or byproducts. 
(B) 
NONORIGINATING
MATERIAL.—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 within or be-
tween the territory of Korea, the United 
States, or both, to the location of the pro-
ducer. 
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of Korea, the United States, or both, 
other than duties or taxes that are waived, 
refunded, refundable, or otherwise recover-
able, including credit against duty or tax 
paid or payable. 
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(iii) The cost of waste and spoilage re-
sulting from the use of the material in the 
production of the good, less the value of 
renewable scrap or byproducts. 
(iv) The cost of originating materials 
used in the production of the nonorigi-
nating material in the territory of Korea, 
the United States, or both. 
(e) ACCUMULATION.— 
(1) ORIGINATING MATERIALS USED IN PRODUC-
TION OF GOODS OF THE OTHER COUNTRY.—Origi-
nating materials from the territory of Korea 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 such other 
country. 
(2) MULTIPLE
PRODUCERS.—A good that is 
produced in the territory of Korea, the United 
States, or both, by 1 or more producers, is an origi-
nating good if the good satisfies the requirements of 
subsection (b) and all other applicable requirements 
of this section. 
(f) DE MINIMIS AMOUNTS OF NONORIGINATING MA-
TERIALS.— 
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(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 6- 
A of the Agreement is an originating good if— 
(A) the value of all nonoriginating mate-
rials used in the production of the good that do 
not undergo the applicable change in tariff clas-
sification (set forth in Annex 6-A of the Agree-
ment) does not exceed 10 percent of the ad-
justed value of the good; 
(B) the good meets all other applicable re-
quirements of this section; and 
(C) the value of such nonoriginating mate-
rials is included in the value of nonoriginating 
materials for any applicable regional value-con-
tent requirement for the good. 
(2) EXCEPTIONS.—Paragraph (1) does not 
apply to the following: 
(A) A nonoriginating material provided for 
in chapter 3 that is used in the production of 
a good provided for in chapter 3. 
(B) A nonoriginating material provided for 
in chapter 4, or a nonoriginating dairy prepara-
tion containing over 10 percent by weight of 
milk solids provided for in subheading 1901.90 
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or 2106.90, that is used in the production of a 
good provided for in chapter 4. 
(C) A nonoriginating material provided for 
in chapter 4, or a nonoriginating dairy prepara-
tion containing over 10 percent by weight of 
milk solids provided for in subheading 1901.90, 
that is used in the production of any of the fol-
lowing goods: 
(i) Infant preparations containing 
over 10 percent by weight of milk solids 
provided for in subheading 1901.10. 
(ii) Mixes and doughs, containing over 
25 percent by weight of butterfat, not put 
up for retail sale, provided for in sub-
heading 1901.20. 
(iii) Dairy preparations containing 
over 10 percent by weight of milk solids 
provided for in subheading 1901.90 or 
2106.90. 
(iv) Goods provided for in heading 
2105. 
(v) Beverages containing milk pro-
vided for in subheading 2202.90. 
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(vi) Animal feeds containing over 10 
percent by weight of milk solids provided 
for in subheading 2309.90. 
(D) A nonoriginating material provided for 
in chapter 7 that is used in the production of 
a good provided for in subheading 0703.10, 
0703.20, 0709.59, 0709.60, 0711.90, 0712.20, 
0714.20, or any of subheadings 0710.21 
through 0710.80 or 0712.39 through 0713.10. 
(E) A nonoriginating material provided for 
in heading 1006, or a nonoriginating rice prod-
uct provided for in chapter 11 that is used in 
the production of a good provided for in head-
ing 1006, 1102, 1103, 1104, or subheading 
1901.20 or 1901.90. 
(F) A nonoriginating material provided for 
in heading 0805, or any of subheadings 
2009.11 through 2009.39, that is used in the 
production of a good provided for in any of sub-
headings 2009.11 through 2009.39, or in fruit 
or vegetable juice of any single fruit or vege-
table, fortified with minerals or vitamins, con-
centrated or unconcentrated, provided for in 
subheading 2106.90 or 2202.90. 
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(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-A of the Agreement, shall be 
considered to be an originating good if the total 
weight of all such fibers or yarns in that com-
ponent is not more than 7 percent of the total 
weight of that component. 
(B) 
CERTAIN
TEXTILE
OR
APPAREL 
GOODS.—A textile or apparel good containing 
elastomeric yarns in the component of the good 
that determines the tariff classification of the 
good shall be considered to be an originating 
good only if such yarns are wholly formed and 
finished in the territory of Korea, the United 
States, or both. 
(C) YARN, FABRIC, OR FIBER.—For pur-
poses of this paragraph, in the case of a good 
that is a yarn, fabric, or fiber, the term ‘‘com-
ponent of the good that determines the tariff 
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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 Korea or the 
United States); or 
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(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 
6-A 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; and 
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(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-A or Annex 6-A of the Agreement, 
and, if the good is subject to a regional value-content re-
quirement, the value of such packaging materials and con-
tainers shall be taken into account as originating or non-
originating materials, 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. 
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(k) INDIRECT MATERIALS.—An indirect material 
shall be disregarded in determining whether a good is an 
originating good. 
(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 Korea 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 Korea or the United States; or 
(2) does not remain under the control of cus-
toms authorities in the territory of a country other 
than Korea or the United States. 
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN 
SETS.—Notwithstanding the rules set forth in Annex 4- 
A and Annex 6-A of the Agreement, goods classifiable as 
goods put up in sets for retail sale as provided for in Gen-
eral Rule of Interpretation 3 of the HTS shall not be con-
sidered to be originating goods unless— 
(1) each of the goods in the set is an origi-
nating good; or 
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(2) the total value of the nonoriginating goods 
in the set does not exceed— 
(A) in the case of textile or apparel goods, 
10 percent of the adjusted value of the set; or 
(B) in the case of goods, other than textile 
or apparel goods, 15 percent of the adjusted 
value of the set. 
(n) DEFINITIONS.—In this section: 
(1) ADJUSTED
VALUE.—The term ‘‘adjusted 
value’’ means the value determined in accordance 
with Articles 1 through 8, Article 15, and the cor-
responding interpretive notes, of the Agreement on 
Implementation of Article VII of the General Agree-
ment on Tariffs and Trade 1994 referred to in sec-
tion 101(d)(8) of the Uruguay Round Agreements 
Act (19 U.S.C. 3511(d)(8)), adjusted, if necessary, 
to exclude any costs, charges, or expenses incurred 
for transportation, insurance, and related services 
incident to the international shipment of the mer-
chandise from the country of exportation to the 
place of importation. 
(2) CLASS
OF
MOTOR
VEHICLES.—The term 
‘‘class of motor vehicles’’ means any one of the fol-
lowing categories of motor vehicles: 
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(A) Motor vehicles provided for in sub-
heading 8701.20, 8704.10, 8704.22, 8704.23, 
8704.32, or 8704.90, or heading 8705 or 8706, 
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’’— 
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(A) means the recognized consensus or 
substantial authoritative support given in the 
territory of Korea or the United States, as the 
case may be, with respect to the recording of 
revenues, expenses, costs, assets, and liabilities, 
the disclosure of information, and the prepara-
tion 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
KOREA, THE 
UNITED STATES, OR BOTH.—The term ‘‘good wholly 
obtained or produced entirely in the territory of 
Korea, the United States, or both’’ means any of the 
following: 
(A) Plants and plant products grown, and 
harvested or gathered, in the territory of Korea, 
the United States, or both. 
(B) Live animals born and raised in the 
territory of Korea, the United States, or both. 
(C) Goods obtained in the territory of 
Korea, the United States, or both from live ani-
mals. 
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(D) Goods obtained from hunting, trap-
ping, fishing, or aquaculture conducted in the 
territory of Korea, 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 Korea, the United States, or both. 
(F) Fish, shellfish, and other marine life 
taken from the sea, seabed, or subsoil outside 
the territory of Korea or the United States 
by— 
(i) a vessel that is registered or re-
corded with Korea and flying the flag of 
Korea; 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 
Korea and flies the flag of Korea; or 
(ii) is a vessel that is documented 
under the laws of the United States. 
(H)(i) Goods taken by Korea or a person 
of Korea from the seabed or subsoil outside the 
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territory of Korea, the United States, or both, 
if Korea has rights to exploit such seabed or 
subsoil; or 
(ii) Goods taken by the United States or a 
person of the United States from the seabed or 
subsoil outside the territory of the United 
States, Korea, or both, if the United States has 
rights to exploit such seabed or subsoil. 
(I) Goods taken from outer space, if the 
goods are obtained by Korea or the United 
States or a person of Korea or the United 
States and not processed in the territory of a 
country other than Korea or the United States. 
(J) Waste and scrap derived from— 
(i) manufacturing or processing oper-
ations in the territory of Korea, the United 
States, or both; or 
(ii) used goods collected in the terri-
tory of Korea, the United States, or both, 
if such goods are fit only for the recovery 
of raw materials. 
(K) Recovered goods derived in the terri-
tory of Korea, the United States, or both, from 
used goods, and used in the territory of Korea, 
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the United States, or both, in the production of 
remanufactured goods. 
(L) Goods, at any stage of production, pro-
duced in the territory of Korea, 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; 
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(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. 
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(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 non-allowable 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 
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2.10.4 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 Korea or the United States. 
(17) PRODUCTION.—The term ‘‘production’’ 
means growing, mining, harvesting, fishing, breed-
ing, raising, trapping, hunting, manufacturing, proc-
essing, assembling, 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 
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under chapter 84, 85, 87, or 90 or heading 9402, 
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.— 
(A) 
IN
GENERAL.—The 
term 
‘‘total 
cost’’— 
(i) means all product costs, period 
costs, and other costs for a good incurred 
in the territory of Korea, the United 
States, or both; and 
(ii) does not include profits that are 
earned by the producer, regardless of 
whether they are retained by the producer 
or paid out to other persons as dividends, 
or taxes paid on those profits, including 
capital gains taxes. 
(B) OTHER DEFINITIONS.—In this para-
graph: 
(i) 
PRODUCT
COSTS.—The 
term 
‘‘product costs’’ means costs that are asso-
ciated with the production of a good and 
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include the value of materials, direct labor 
costs, and direct overhead. 
(ii) PERIOD COSTS.—The term ‘‘pe-
riod costs’’ means costs, other than prod-
uct costs, that are expensed in the period 
in which they are incurred, such as selling 
expenses and general and administrative 
expenses. 
(iii) OTHER COSTS.—The term ‘‘other 
costs’’ means all costs recorded on the 
books of the producer that are not product 
costs or period costs, such as interest. 
(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-A 
and Annex 6-A of the Agreement; and 
(B) any additional subordinate category 
that is necessary to carry out this title con-
sistent with the Agreement. 
(2) MODIFICATIONS.— 
(A) IN GENERAL.—Subject to the consulta-
tion and layover provisions of section 104, the 
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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-A 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— 
(i) such modifications to the provi-
sions proclaimed under the authority of 
paragraph (1)(A) as are necessary to im-
plement an agreement with Korea pursu-
ant to article 4.2.5 of the Agreement; and 
(ii) before the end of the 1-year period 
beginning on the date on which the Agree-
ment enters into force, modifications to 
correct any typographical, clerical, or other 
nonsubstantive technical error regarding 
the provisions of chapters 50 through 63 
(as included in Annex 4-A of the Agree-
ment). 
(3) FIBERS, YARNS, OR FABRICS NOT AVAIL-
ABLE IN COMMERCIAL QUANTITIES IN THE UNITED 
STATES.— 
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(A) IN GENERAL.—Notwithstanding para-
graph (2)(A), the list of fibers, yarns, and fab-
rics set forth in the list of the United States in 
Appendix 4-B-1 of the Agreement may be modi-
fied as provided for in this paragraph. 
(B) DEFINITIONS.—In this paragraph: 
(i) INTERESTED ENTITY.—The term 
‘‘interested entity’’ means the Government 
of Korea, 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 FIBERS, YARNS, OR 
FABRICS.— 
(i) IN GENERAL.—An interested entity 
may request the President to determine 
that a fiber, yarn, or fabric is not available 
in commercial quantities in a timely man-
ner in the United States and to add that 
fiber, yarn, or fabric to the list of the 
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(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 60 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. 
(D) DEEMED
DENIAL
OF
REQUEST.—If, 
after an interested entity submits a request 
under subparagraph (C)(i), the President does 
not, within 30 days of the expiration of the ap-
plicable time period specified in subparagraph 
(C)(iv), make a determination under subpara-
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graph (C)(ii) regarding the request, the request 
shall be considered to be denied. 
(E) 
REQUESTS
TO
REMOVE
FIBERS, 
YARNS, OR FABRICS.— 
(i) IN GENERAL.—An interested entity 
may request the President to remove from 
the list of the United States in Appendix 
4-B-1 of the Agreement, any fiber, yarn, or 
fabric that has been added to that list pur-
suant to subparagraph (C)(iii). 
(ii) PROCLAMATION AUTHORITY.—Not 
later than 30 days after the date on which 
a request under clause (i) is submitted, the 
President may proclaim that the fiber, 
yarn, or fabric that is the subject of the re-
quest is removed from the list of the 
United States in Appendix 4-B-1 of the 
Agreement if the President determines 
that the fiber, yarn, or fabric is available 
in commercial quantities in a timely man-
ner in the United States. 
(iii) EFFECTIVE DATE.—A proclama-
tion issued under clause (ii) may not take 
effect earlier than the date that is 6 
months after the date on which the text of 
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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 (E)(ii). 
SEC. 203. 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 (18) the following: 
‘‘(19) No fee may be charged under subsection (a) 
(9) or (10) with respect to goods that qualify as origi-
nating goods under section 202 of the United States– 
Korea Free Trade 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.’’. 
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SEC. 204. 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 (11) as 
paragraph (12); and 
(B) by inserting after paragraph (10) the 
following new paragraph: 
‘‘(11) PRIOR DISCLOSURE REGARDING CLAIMS 
UNDER THE UNITED STATES–KOREA FREE TRADE 
AGREEMENT.—An importer shall not be subject to 
penalties under subsection (a) for making an incor-
rect claim that a good qualifies as an originating 
good under section 202 of the United States–Korea 
Free Trade Agreement Implementation Act if the 
importer, in accordance with regulations issued by 
the Secretary of the Treasury, promptly and volun-
tarily makes a corrected declaration and pays any 
duties owing with respect to that good.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(j) FALSE CERTIFICATIONS OF ORIGIN UNDER THE 
UNITED STATES–KOREA FREE TRADE AGREEMENT.— 
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‘‘(1) IN GENERAL.—Subject to paragraph (2), 
it is unlawful for any person to certify falsely, by 
fraud, gross negligence, or negligence, in a KFTA 
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 202 of the 
United States–Korea Free Trade Agreement Imple-
mentation 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 KFTA certification 
of origin has reason to believe that such certification 
contains or is based on incorrect information, the ex-
porter or producer voluntarily provides written no-
tice 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 KFTA certification of 
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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: 
‘‘(j) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT UNDER THE UNITED STATES–KOREA FREE TRADE 
AGREEMENT.—If U.S. Customs and Border Protection or 
U.S. Immigration and Customs Enforcement of the De-
partment of Homeland Security finds indications of a pat-
tern of conduct by an importer, exporter, or producer of 
false or unsupported representations that goods qualify 
under the rules of origin provided for in section 202 of 
the United States–Korea Free Trade Agreement Imple-
mentation 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–Korea Free Trade Agreement Imple-
mentation Act to entries of identical goods covered by sub-
sequent representations by that importer, exporter, or pro-
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ducer until U.S. Customs and Border Protection deter-
mines that representations of that person are in con-
formity with such section 202.’’. 
SEC. 205. 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 202 of the United States–Korea Free Trade 
Agreement Implementation Act for which’’. 
SEC. 206. RECORDKEEPING REQUIREMENTS. 
Section 508 of the Tariff Act of 1930 (19 U.S.C. 
1508) is amended— 
(1) by redesignating subsection (i) as subsection 
(j); 
(2) by inserting after subsection (h) the fol-
lowing new subsection: 
‘‘(i) CERTIFICATIONS OF ORIGIN FOR GOODS EX-
PORTED UNDER
THE UNITED STATES–KOREA FREE 
TRADE AGREEMENT.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) RECORDS
AND
SUPPORTING
DOCU-
MENTS.—The term ‘records and supporting 
documents’ means, with respect to an exported 
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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) KFTA CERTIFICATION OF ORIGIN.— 
The term ‘KFTA certification of origin’ means 
the certification established under article 6.15 
of the United States–Korea Free Trade Agree-
ment that a good qualifies as an originating 
good under such Agreement. 
‘‘(2) EXPORTS
TO
KOREA.—Any person who 
completes and issues a KFTA certification of origin 
for a good exported from the United States shall 
make, keep, and, pursuant to rules and regulations 
promulgated by the Secretary of the Treasury, 
render for examination and inspection all records 
and supporting documents related to the origin of 
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the good (including the certification or copies there-
of). 
‘‘(3) RETENTION
PERIOD.—The person who 
issues a KFTA 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 (j), as so redesignated, by 
striking ‘‘(g), or (h)’’ and inserting ‘‘(g), (h), or (i)’’. 
SEC. 207. 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 Korea to con-
duct a verification pursuant to article 4.3 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— 
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(A) an exporter or producer in Korea is 
complying with applicable customs laws, regula-
tions, procedures, requirements, and practices 
affecting trade in textile or apparel goods; or 
(B) a claim that a textile or apparel good 
exported or produced by such exporter or pro-
ducer— 
(i) qualifies as an originating good 
under section 202, or 
(ii) is a good of Korea, 
is accurate. 
(b) APPROPRIATE ACTION DESCRIBED.—Appropriate 
action under subsection (a)(1) includes— 
(1) suspension of liquidation of the entry 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), in a case in which the request 
for verification was based on a reasonable suspicion 
of unlawful activity related to such goods; and 
(2) suspension of liquidation of the entry of a 
textile or apparel good for which a claim has been 
made that is the subject of a verification under sub-
section (a)(1) regarding a claim described in sub-
section (a)(2)(B). 
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(c) ACTION
WHEN
INFORMATION
IS
INSUFFI-
CIENT.—If the Secretary of the Treasury determines that 
the information obtained within 12 months after making 
a request for a verification under subsection (a)(1) is in-
sufficient to make a determination under subsection 
(a)(2), the President may direct the Secretary to take ap-
propriate 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); or 
(B) the textile or apparel good for which a 
claim has been made that is the subject of a 
verification under subsection (a)(1) regarding a 
claim described in subsection (a)(2)(B); and 
(2) denial of entry into the United States of— 
(A) any textile or apparel good exported or 
produced by the person that is the subject of a 
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verification under subsection (a)(1) regarding 
compliance described in subsection (a)(2)(A); or 
(B) a textile or apparel good for which a 
claim has been made that is the subject of a 
verification under subsection (a)(1) regarding a 
claim described in subsection (a)(2)(B). 
(e) PUBLICATION OF NAME OF PERSON.—In accord-
ance with article 4.3.11 of the Agreement, the Secretary 
of the Treasury may publish the name of any person that 
the Secretary has determined— 
(1) is engaged in 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, textile or apparel goods. 
(f) CERTIFICATE
OF ELIGIBILITY.—The Commis-
sioner responsible for U.S. Customs and Border Protec-
tion of the Department of Homeland Security may require 
an importer to submit at the time the importer files a 
claim for preferential tariff treatment under Annex 4-B 
of the Agreement a certificate of eligibility, properly com-
pleted and signed by an authorized official of the Govern-
ment of Korea. 
(g) VERIFICATIONS IN THE UNITED STATES.—If the 
government of a country that is a party to a free trade 
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agreement with the United States makes a request for a 
verification pursuant to that agreement, the Secretary of 
the Treasury may request a verification of the production 
of any textile or apparel good in order to assist that gov-
ernment in determining whether— 
(1) a claim of origin under the agreement for 
a textile or apparel good is accurate; or 
(2) an exporter, producer, or other enterprise 
located in the United States involved in the move-
ment of textile or apparel goods from the United 
States to the territory of the requesting government 
is complying with applicable customs laws, regula-
tions, and procedures regarding trade in textile or 
apparel goods. 
SEC. 208. REGULATIONS. 
The Secretary of the Treasury shall prescribe such 
regulations as may be necessary to carry out— 
(1) subsections (a) through (n) of section 202; 
(2) the amendment made by section 203; and 
(3) any proclamation issued under section 
202(o). 
TITLE III—RELIEF FROM 
IMPORTS 
SEC. 301. DEFINITIONS. 
In this title: 
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(1) KOREAN ARTICLE.—The term ‘‘Korean arti-
cle’’ means an article that qualifies as an originating 
good under section 202(b). 
(2) KOREAN MOTOR VEHICLE ARTICLE.—The 
term ‘‘Korean motor vehicle article’’ means a good 
provided for in heading 8703 or 8704 of the HTS 
that qualifies as an originating good under section 
202(b). 
(3) KOREAN TEXTILE OR APPAREL ARTICLE.— 
The term ‘‘Korean textile or apparel article’’ means 
a textile or apparel good (as defined in section 3(5)) 
that is a Korean article. 
Subtitle A—Relief From Imports 
Benefitting From the Agreement 
SEC. 311. COMMENCING OF ACTION FOR RELIEF. 
(a) FILING OF PETITION.— 
(1) IN GENERAL.—A petition requesting action 
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 sub-
section to the United States Trade Representative. 
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(2) PROVISIONAL RELIEF.—An entity filing a 
petition under this subsection may request that pro-
visional relief be provided as if the petition had been 
filed under section 202(a) of the Trade Act of 1974 
(19 U.S.C. 2252(a)). 
(3) CRITICAL CIRCUMSTANCES.—Any allegation 
that critical circumstances exist shall be included in 
the petition. 
(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 Korean 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 Korean article constitute 
a substantial cause of serious injury or threat thereof to 
the domestic industry producing an article that is like, or 
directly competitive with, the imported article. 
(c) APPLICABLE PROVISIONS.—The following provi-
sions of section 202 of the Trade Act of 1974 (19 U.S.C. 
2252) apply with respect to any investigation initiated 
under subsection (b): 
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(1) Paragraphs (1)(B) and (3) of subsection 
(b). 
(2) Subsection (c). 
(3) Subsection (d). 
(4) Subsection (i). 
(d) ARTICLES EXEMPT FROM INVESTIGATION.—No 
investigation may be initiated under this section with re-
spect to any Korean article if, after the date on which 
the Agreement enters into force, import relief has been 
provided with respect to that Korean article under this 
subtitle. 
SEC. 312. COMMISSION ACTION ON PETITION. 
(a) DETERMINATION.—Not later than 120 days (180 
days if critical circumstances have been alleged) after the 
date on which an investigation is initiated under section 
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). 
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(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-
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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-
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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.—Except as provided in para-
graph (2), the import relief that the President is au-
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thorized 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 2-B of the 
Agreement 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) DUTIES APPLIED ON A SEASONAL BASIS.— 
In the case of imports of an article to which a duty 
is applied on a seasonal basis, the import relief that 
the President is authorized to provide under this 
section is as follows: 
(A) The suspension of any further reduc-
tion provided for under Annex 2-B of the 
Agreement in the duty imposed on the article. 
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(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 for 
the corresponding season immediately pre-
ceding the date the import relief is pro-
vided; or 
(ii) the column 1 general rate of duty 
imposed under the HTS for the cor-
responding season immediately preceding 
the date on which the Agreement enters 
into force. 
(3) 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 10.2.7 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 be in effect for more than 2 
years. 
(2) EXTENSION.— 
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(A) IN
GENERAL.—Subject to subpara-
graph (C), the President, after receiving a de-
termination from the Commission under sub-
paragraph (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 by up to 1 year, if 
the President determines 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 
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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. 
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(C) PERIOD OF IMPORT RELIEF.—Any im-
port relief provided under this section, including 
any extensions thereof, may not, in the aggre-
gate, be in effect for more than 3 years. 
(e) RATE AFTER TERMINATION
OF IMPORT RE-
LIEF.—Beginning on the date on which import relief 
under this section is terminated with respect to an article, 
the rate of duty on that article shall be the rate that would 
have been in effect but for the provision of such relief. 
(f) ARTICLES EXEMPT FROM RELIEF.—No import 
relief may be provided under this section on any article 
that is subject to import relief under— 
(1) subtitle B or C; or 
(2) chapter 1 of title II of the Trade Act of 
1974 (19 U.S.C. 2251 et seq.). 
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 2-B of the Agreement, is greater 
than 10 years, no relief under this subtitle may be pro-
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