H. R. 3450—38
for the article. If after such 30-day period the person
making the claim either—
‘‘(I) prepares a NAFTA Certificate of Origin
for the article; or
‘‘(II) learns of the existence of such a Certifi-
cate for the article;
that person, within 30 days after the occurrence
described in subclause (I) or (II), must disclose the
occurrence to the Customs Service.
‘‘(iii) ACTION ON CLAIM.—If the Customs Service
determines that a NAFTA Certificate of Origin has
been prepared with respect to an article for which
a claim described in clause (i) is made, the Customs
Service may make such adjustments regarding the pre-
vious customs treatment of the article as may be war-
ranted.
‘‘(3) EXPORTS UNDER THE CANADIAN AGREEMENT.—Any per-
son who exports, or who knowingly causes to be exported,
any merchandise to Canada during such time as the United
States-Canada Free-Trade Agreement is in force with respect
to, and the United States applies that Agreement to, Canada
shall make, keep, and render for examination and inspection
such records (including certifications of origin or copies thereof)
which pertain to the exportations.’’.
(2) Subsection (c) is amended to read as follows:
‘‘(c) PERIOD OF TIME.—The records required by subsections (a)
and (b) shall be kept for such periods of time as the Secretary
shall prescribe; except that—
‘‘(1) no period of time for the retention of the records
required under subsection (a) or (b)(3) may exceed 5 years
from the date of entry or exportation, as appropriate;
‘‘(2) the period of time for the retention of the records
required under subsection (b)(2) shall be at least 5 years from
the date of signature of the NAFTA Certificate of Origin; and
‘‘(3) records for any drawback claim shall be kept until
the 3rd anniversary of the date of payment of the claim.’’.
(3) Subsection (e) is amended to read as follows:
‘‘(e) SUBSECTION (b) PENALTIES.—
‘‘(1) RELATING TO NAFTA EXPORTS.—Any person who fails
to retain records required by paragraph (2) of subsection (b)
or the regulations issued to implement that paragraph shall
be liable for—
‘‘(A) a civil penalty not to exceed $10,000; or
‘‘(B) the general recordkeeping penalty that applies
under the customs laws;
whichever penalty is higher.
‘‘(2) RELATING
TO
CANADIAN
AGREEMENT
EXPORTS.—Any
person who fails to retain the records required by paragraph
(3) of subsection (b) or the regulations issued to implement
that paragraph shall be liable for a civil penalty not to exceed
$10,000.’’.
(b) CONFORMING AMENDMENT.—Section 509(a)(2)(A)(ii) of the
Tariff Act of 1930 (19 U.S.C. 1509(a)(2)(A)(ii)) is amended to read
as follows:
‘‘(ii) exported merchandise, or knowingly caused
merchandise to be exported, to a NAFTA country (as
defined in section 2(4) of the North American Free
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H. R. 3450—39
Trade Agreement Implementation Act) or to Canada
during such time as the United States-Canada Free-
Trade Agreement is in force with respect to, and the
United States applies that Agreement to, Canada,’’.
(c) 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 (5) as paragraph (6);
and
(B) by inserting after paragraph (4) the following new
paragraph:
‘‘(5) PRIOR
DISCLOSURE
REGARDING
NAFTA
CLAIMS.—An
importer shall not be subject to penalties under subsection
(a) for making an incorrect claim for preferential tariff treat-
ment under section 202 of the North American Free Trade
Agreement Implementation Act if the importer—
‘‘(A) has reason to believe that the NAFTA Certificate
of Origin (as defined in section 508(b)(1)) on which the
claim was based contains incorrect information; and
‘‘(B) in accordance with regulations issued by the Sec-
retary, voluntarily and promptly makes a corrected declara-
tion and pays any duties owing.’’; and
(2) by adding at the end the following new subsection:
‘‘(f) FALSE CERTIFICATIONS REGARDING EXPORTS
TO NAFTA
COUNTRIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (3), it is unlawful
for any person to certify falsely, by fraud, gross negligence,
or negligence, in a NAFTA Certificate of Origin (as defined
in section 508(b)(1)) that a good to be exported to a NAFTA
country (as defined in section 2(4) of the North American Free
Trade Agreement Implementation Act) qualifies under the rules
of origin set out in section 202 of that Act.
‘‘(2) APPLICABLE
PROVISIONS.—The procedures and pen-
alties of this section that apply to a violation of subsection
(a) also apply to a violation of paragraph (1), except that—
‘‘(A) subsection (d) does not apply, and
‘‘(B) subsection (c)(5) applies only if the person volun-
tarily and promptly provides, to all persons to whom the
person provided the NAFTA Certificate of Origin, written
notice of the falsity of the Certificate.
‘‘(3) EXCEPTION.—A person may not be considered to have
violated paragraph (1) if—
‘‘(A) the information was correct at the time it was
provided in a NAFTA Certificate of Origin but was later
rendered incorrect due to a change in circumstances; and
‘‘(B) the person voluntarily and promptly provides writ-
ten notice of the change to all persons to whom the person
provided the Certificate of Origin.’’.
SEC. 206. RELIQUIDATION OF ENTRIES FOR NAFTA-ORIGIN GOODS.
Section 520 of the Tariff Act of 1930 (19 U.S.C. 1520)
is amended by adding at the end the following new subsection:
‘‘(d) Notwithstanding the fact that a valid protest was not
filed, the Customs Service may, in accordance with regulations
prescribed by the Secretary, reliquidate an entry to refund any
excess duties paid on a good qualifying under the rules of origin
set out in section 202 of the North American Free Trade Agreement
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H. R. 3450—40
Implementation Act for which no claim for preferential tariff treat-
ment was made at the time of importation if the importer, within
1 year after the date of importation, files, in accordance with
those regulations, a claim that includes—
‘‘(1) a written declaration that the good qualified under
those rules at the time of importation;
‘‘(2) copies of all applicable NAFTA Certificates of Origin
(as defined in section 508(b)(1)); and
‘‘(3) such other documentation relating to the importation
of the goods as the Customs Service may require.’’.
SEC. 207. COUNTRY OF ORIGIN MARKING OF NAFTA GOODS.
(a) AMENDMENTS TO TARIFF ACT OF 1930.—Section 304 of the
Tariff Act of 1930 (19 U.S.C. 1304) is amended—
(1) in subsection (c)(1), by striking ‘‘or engraving’’ and
inserting ‘‘engraving, or continuous paint stenciling’’;
(2) in subsection (c)(2)—
(A) by striking ‘‘four’’ and inserting ‘‘five’’; and
(B) by striking ‘‘such as paint stenciling’’;
(3) in subsection (e), by striking ‘‘or engraving’’ and insert-
ing ‘‘engraving, or an equally permanent method of marking’’;
(4) by redesignating subsection (h) as subsection (i); and
(5) by inserting after subsection (g) the following new sub-
section:
‘‘(h) TREATMENT OF GOODS OF A NAFTA COUNTRY.—
‘‘(1) APPLICATION OF SECTION.—In applying this section to
an article that qualifies as a good of a NAFTA country (as
defined in section 2(4) of the North American Free Trade Agree-
ment Implementation Act) under the regulations issued by
the Secretary to implement Annex 311 of the North American
Free Trade Agreement—
‘‘(A) the exemption under subsection (a)(3)(H) shall
be applied by substituting ‘reasonably know’ for ‘necessarily
know’;
‘‘(B) the Secretary shall exempt the good from the
requirements for marking under subsection (a) if the good—
‘‘(i) is an original work of art, or
‘‘(ii) is provided for under subheading 6904.10,
heading 8541, or heading 8542 of the Harmonized Tar-
iff Schedule of the United States; and
‘‘(C) subsection (b) does not apply to the usual container
of any good described in subsection (a)(3) (E) or (I) or
subparagraph (B) (i) or (ii) of this paragraph.
‘‘(2) PETITION RIGHTS OF NAFTA EXPORTERS AND PRODUCERS
REGARDING MARKING DETERMINATIONS.—
‘‘(A) DEFINITIONS.—For purposes of this paragraph:
‘‘(i) The term ‘adverse marking decision’ means
a determination by the Customs Service which an
exporter or producer of merchandise believes to be
contrary to Annex 311 of the North American Free
Trade Agreement.
‘‘(ii) A person may not be treated as the exporter
or producer of merchandise regarding which an adverse
marking decision was made unless such person—
‘‘(I) if claiming to be the exporter, is located
in a NAFTA country and is required to maintain
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H. R. 3450—41
records in that country regarding exportations to
NAFTA countries; or
‘‘(II) if claiming to be the producer, grows,
mines, harvests, fishes, traps, hunts, manufac-
tures, processes, or assembles such merchandise
in a NAFTA country.
‘‘(B) INTERVENTION OR PETITION REGARDING ADVERSE
MARKING
DECISIONS.—If the Customs Service makes an
adverse marking decision regarding any merchandise, the
Customs Service shall, upon written request by the exporter
or producer of the merchandise, provide to the exporter
or producer a statement of the basis for the decision. If
the exporter or producer believes that the decision is not
correct, it may intervene in any protest proceeding initiated
by the importer of the merchandise. If the importer does
not file a protest with regard to the decision, the exporter
or producer may file a petition with the Customs Service
setting forth—
‘‘(i) a description of the merchandise; and
‘‘(ii) the basis for its claim that the merchandise
should be marked as a good of a NAFTA country.
‘‘(C) EFFECT OF DETERMINATION REGARDING DECISION.—
If, after receipt and consideration of a petition filed by
an exporter or producer under subparagraph (B), the Cus-
toms Service determines that the adverse marking
decision—
‘‘(i) is not correct, the Customs Service shall notify
the petitioner of the determination and all merchandise
entered, or withdrawn from warehouse for consump-
tion, more than 30 days after the date that notice
of the determination under this clause is published
in the weekly Custom Bulletin shall be marked in
conformity with the determination; or
‘‘(ii) is correct, the Customs Service shall notify
the petitioner that the petition is denied.
‘‘(D) JUDICIAL REVIEW.—For purposes of judicial review,
the denial of a petition under subparagraph (C)(ii) shall
be treated as if it were a denial of a petition of an interested
party under section 516 regarding an issue arising under
any of the preceding provisions of this section.’’.
(b) COORDINATION WITH 1988 ACT REGARDING CERTAIN ARTI-
CLES.—Articles that qualify as goods of a NAFTA country under
regulations issued by the Secretary in accordance with Annex 311
of the Agreement are exempt from the marking requirements
promulgated by the Secretary of the Treasury under section 1907(c)
of the Omnibus Trade and Competitiveness Act of 1988 (Public
Law 100–418), but are subject to the requirements of section 304
of the Tariff Act of 1930 (19 U.S.C. 1304).
SEC. 208. PROTESTS AGAINST ADVERSE ORIGIN DETERMINATIONS.
Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) is
amended—
(1) in subsection (c)(1) by inserting ‘‘, or with respect to
a determination of origin under section 202 of the North Amer-
ican Free Trade Agreement Implementation Act,’’ after ‘‘with
respect to any one category of merchandise’’ in the fourth
sentence;
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