One Hundred Eighth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
An Act
To implement the United States-Singapore Free Trade Agreement.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘United States-
Singapore Free Trade Agreement Implementation 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, proclaimed
actions.
Sec. 104. Implementing actions in anticipation of entry into force and initial regula-
tions.
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.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
H. R. 2739—2
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 Republic of Singapore
entered into under the authority of section 2103(b) of the Bipar-
tisan Trade Promotion Authority Act of 2002;
(2) to strengthen and develop economic relations 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 cooperation 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 Agreement approved by Congress
under section 101(a).
(2) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff
Schedule of the United States.
TITLE I—APPROVAL OF, AND GENERAL
PROVISIONS 
RELATING 
TO, 
THE
AGREEMENT
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRA-
TIVE ACTION.—Pursuant to section 2105 of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C. 3805) and section
151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress approves—
(1) the United States-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 proposed to
implement the Agreement that was submitted 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 that take effect on the date on which the Agree-
ment 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.
H. R. 2739—3
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES
AND STATE LAW.
(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provi-
sion of the Agreement, nor the application of any such provision
to any person or circumstance, which is inconsistent with any
law of the United States shall have effect.
(2) 
CONSTRUCTION.—Nothing 
in 
this 
Act 
shall 
be
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 cir-
cumstance on the ground that the provision or application
is inconsistent with the Agreement, except in an action brought
by the United States for the purpose of declaring such law
or application invalid.
(2) DEFINITION OF STATE LAW.—For purposes of this sub-
section, the term ‘‘State law’’ includes—
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business
of insurance.
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REM-
EDIES.—No person other than the United States—
(1) shall have any cause of action or defense under the
Agreement or by virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any provi-
sion of law, any action or inaction by any department, agency,
or other instrumentality of the United States, any State, or
any political subdivision of a State on the ground that such
action or inaction is inconsistent with the Agreement.
SEC. 103. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFEC-
TIVE DATE OF, PROCLAIMED ACTIONS.
(a) CONSULTATION AND LAYOVER REQUIREMENTS.—If a provision
of this Act provides that the implementation of an action by the
President by proclamation is subject to the consultation and layover
requirements of this section, such action may be proclaimed only
if—
(1) the President has obtained advice regarding the pro-
posed action from—
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974; 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 Committee on Ways and
Means of the House of Representatives that sets forth—
(A) the action proposed to be proclaimed and the rea-
sons therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days beginning on the first
day on which the requirements of paragraphs (1) and (2) have
been met has expired; and
H. R. 2739—4
(4) the President has consulted with such Committees
regarding the proposed action during the period referred to
in paragraph (3).
(b) 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 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 REGULATIONS.
(a) IMPLEMENTING ACTIONS.—
(1) PROCLAMATION AUTHORITY.—After the date of enact-
ment of this Act—
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations—
as may be necessary to ensure that any provision of this Act,
or amendment made by this Act, that takes effect on the
date the Agreement enters into force is appropriately imple-
mented on such date, but no such proclamation or regulation
may have an effective 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 necessary or
appropriate to carry out the actions required by or authorized
under this Act or proposed in the statement of administrative
action submitted under section 101(a)(2) to implement the Agree-
ment shall, to the maximum extent feasible, be issued within 1
year after the date 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 regulations
to carry out that action shall, to the maximum extent feasible,
be issued within 1 year after such effective date.
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—The President
is authorized to establish or designate within the Department of
Commerce an office that shall be responsible for providing adminis-
trative assistance to panels established under chapter 20 of the
Agreement. Such office may 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 2003 to
the Department of Commerce such sums as may be necessary
for the establishment and operations of the office under subsection
(a) and for the payment of the United States share of the expenses
of panels established under chapter 20 of the Agreement.
SEC. 106. ARBITRATION OF CERTAIN CLAIMS.
(a) SUBMISSION
OF CERTAIN CLAIMS.—The United States is
authorized to resolve any claim against the United States covered
by article 15.15.1(a)(i)(C) or article 15.15.1(b)(i)(C) of the Agreement,
H. R. 2739—5
pursuant to the Investor-State Dispute Settlement procedures set
forth in section C of chapter 15 of the Agreement.
(b) CONTRACT CLAUSES.—All contracts executed by any agency
of the United States on or after the date of entry into force of
the Agreement shall contain a clause specifying the law that will
apply to resolve any breach of contract claim.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
(a) EFFECTIVE DATES.—Except as provided in subsection (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 effect 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—
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 provided for by the Agree-
ment.
(c) CONVERSION TO AD VALOREM RATES.—For purposes of sub-
sections (a) and (b), with respect to any good for which the base
rate in the Schedule of the United States set forth in Annex 2B
of the Agreement is a specific or compound rate of duty, the Presi-
dent may substitute for the base rate an ad valorem rate that
the President 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 provided for under
H. R. 2739—6
the Agreement, except as otherwise provided in this section, a
good is an originating good if—
(1) the good is wholly obtained or produced entirely 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 tariff classifica-
tion set out in Annex 3A of the Agreement as a result
of production occurring entirely in the territory of Singa-
pore, the United States, or both; or
(B) if no change in tariff classification is required,
the good otherwise satisfies the applicable 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.
(b) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.—
(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 materials used in
the production of the good that do not undergo the required
change in tariff classification under Annex 3A of the Agree-
ment 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 fol-
lowing:
(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 production of a good provided for in chapter
4 of the HTS.
(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 production 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 pro-
vided 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 1805.00.00 of the HTS that
H. R. 2739—7
is used in the production of a good provided for in sub-
heading 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 different subheading than the good for which
origin is being determined under this section.
(3) GOODS PROVIDED FOR IN CHAPTERS 50 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 classification
of the good do not undergo an applicable change in tariff
classification set out in Annex 3A of the Agreement shall
be considered 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 containing elastomeric yarns in the
component of the good that determines the tariff classi-
fication of the good shall be considered to be an origi-
nating good only if such yarns are wholly formed in
the territory of Singapore or the United States.
(ii) DEFINITION OF TEXTILE OR APPAREL GOOD.—
For purposes of this subparagraph, 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 Agree-
ments Act (19 U.S.C. 3511(d)(4)).
(c) ACCUMULATION.—
(1) ORIGINATING GOODS INCORPORATED IN GOODS OF OTHER
COUNTRY.—Originating materials 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 originating 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 tariff 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.—
H. R. 2739—8
(A) IN GENERAL.—The regional value-content of a good
may be calculated on the basis of the following build-
down method:
AV–VNM
RVC = ———— × 100
AV
(B) DEFINITIONS.—For purposes of subparagraph (A):
(i) The term ‘‘RVC’’ means the regional value-con-
tent, expressed as a percentage.
(ii) The term ‘‘AV’’ means the adjusted value.
(iii) The term ‘‘VNM’’ means the value of nonorigi-
nating 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-content of a good
may be calculated on the basis of the following build-
up method:
VOM
RVC = ———— × 100
AV
(B) DEFINITIONS.—For purposes of subparagraph (A):
(i) The term ‘‘RVC’’ means the regional value-con-
tent, expressed as a percentage.
(ii) The term ‘‘AV’’ means the adjusted value.
(iii) The term ‘‘VOM’’ means the value of origi-
nating materials that are acquired 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 subsection (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, except 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—
(i) all expenses incurred in the production of the
material, including general expenses; and
(ii) an amount for profit.
(2) FURTHER ADJUSTMENTS TO THE VALUE OF MATERIALS.—
(A) ORIGINATING MATERIALS.—The following expenses,
if not included in the value of an originating material
calculated under paragraph (1), may be added to the value
of the originating material:
H. R. 2739—9
(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 brokerage fees on
the material paid in the territory 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 resulting from
the use of the material in the 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 mate-
rial calculated under paragraph (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 brokerage fees on
the material paid in the territory 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 resulting 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 States in the production
of the nonoriginating material.
(v) The cost of originating materials used in the
production of the nonoriginating material in the terri-
tory of Singapore 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 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 non-
originating materials used in the production 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 accessories, spare
parts, or tools are customary for the good; and
(C) if the good is subject to a regional value-content
requirement, the value of the accessories, spare parts, or
tools is taken into account as originating or nonoriginating
materials, as the case may be, in calculating the regional
value-content of the good.
(g) FUNGIBLE GOODS AND MATERIALS.—
(1) IN GENERAL.—
H. R. 2739—10
(A) CLAIM FOR PREFERENTIAL TREATMENT.—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 mate-
rial or by using an inventory management method.
(B) INVENTORY
MANAGEMENT
METHOD.—In this sub-
section, the term ‘‘inventory management 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 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 materials, 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 a good is packed for
shipment shall be disregarded in determining 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 consid-
ered 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 consid-
ered to be an originating good by reason of having undergone
production that satisfies the requirements of subsection (a) if, subse-
quent 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.—
(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 territory of Singapore, the United States,
or both, from fabric or yarn, regardless of origin, designated