H. R. 2738—13
goods in the set does not exceed 10 percent of the value of the
set determined for purposes of assessing customs duties.
(m) APPLICATION AND INTERPRETATION.—In this section:
(1) The basis for any tariff classification is the HTS.
(2) Any cost or value referred to in this section shall be
recorded and maintained in accordance with the generally
accepted accounting principles applicable in the territory of
the country in which the good is produced (whether Chile
or the United States).
(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 corresponding interpretive notes of the
Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 referred to in section
101(d)(8) of the Uruguay Round Agreements Act, except that
such value may be adjusted to exclude any costs, charges,
or expenses incurred for transportation, insurance, and related
services incident to the international shipment of the merchan-
dise from the country of exportation to the place of importation.
(2) FUNGIBLE GOODS OR FUNGIBLE MATERIALS.—The terms
‘‘fungible goods’’ and ‘‘fungible materials’’ mean goods or mate-
rials, as the case may be, that are interchangeable for commer-
cial purposes and the properties of which are essentially iden-
tical.
(3) GENERALLY
ACCEPTED
ACCOUNTING
PRINCIPLES.—The
term ‘‘generally accepted accounting principles’’ means the prin-
ciples, rules, and procedures, including both broad and specific
guidelines, that define the accounting practices accepted in
the territory of Chile or the United States, as the case may
be.
(4) GOODS WHOLLY OBTAINED OR PRODUCED ENTIRELY IN
THE TERRITORY OF CHILE, THE UNITED STATES, OR BOTH.—The
term ‘‘goods wholly obtained or produced entirely in the terri-
tory of Chile, the United States, or both’’ means—
(A) mineral goods extracted in the territory of Chile,
the United States, or both;
(B) vegetable goods, as such goods are defined in the
Harmonized System, harvested in the territory of Chile,
the United States, or both;
(C) live animals born and raised in the territory of
Chile, the United States, or both;
(D) goods obtained from hunting, trapping, or fishing
in the territory of Chile, the United States, or both;
(E) goods (fish, shellfish, and other marine life) taken
from the sea by vessels registered or recorded with Chile
or the United States and flying the flag of that country;
(F) goods produced on board factory ships from the
goods referred to in subparagraph (E), if such factory ships
are registered or recorded with Chile or the United States
and fly the flag of that country;
(G) goods taken by Chile or the United States or a
person of Chile or the United States from the seabed or
beneath the seabed outside territorial waters, if Chile or
the United States has rights to exploit such seabed;
(H) goods taken from outer space, if the goods are
obtained by Chile or the United States or a person of
H. R. 2738—14
Chile or the United States and not processed in the terri-
tory of a country other than Chile or the United States;
(I) waste and scrap derived from—
(i) production in the territory of Chile, the United
States, or both; or
(ii) used goods collected in the territory of Chile,
the United States, or both, if such goods are fit only
for the recovery of raw materials;
(J) recovered goods derived in the territory of Chile
or the United States from used goods, and used in the
territory of that country in the production of remanufac-
tured goods; and
(K) goods produced in the territory of Chile, the United
States, or both, exclusively—
(i) from goods referred to in any of subparagraphs
(A) through (I), or
(ii) from the derivatives of goods referred to in
clause (i),
at any stage of production.
(5) HARMONIZED SYSTEM.—The term ‘‘Harmonized System’’
means the Harmonized Commodity Description and Coding
System.
(6) INDIRECT
MATERIAL.—The term ‘‘indirect material’’
means a good used in the production, testing, or inspection
of a good but not physically incorporated into the good, or
a good used in the maintenance of buildings or the operation
of equipment associated with the production of a good,
including—
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the maintenance
of equipment or buildings;
(D) lubricants, greases, compounding materials, and
other materials used in production or used to operate equip-
ment or buildings;
(E) gloves, glasses, footwear, clothing, safety equip-
ment, and supplies;
(F) equipment, devices, and supplies used for testing
or inspecting the good;
(G) catalysts and solvents; and
(H) any other goods that are not incorporated into
the good but the use of which in the production of the
good can reasonably be demonstrated to be a part of that
production.
(7) MATERIAL.—The term ‘‘material’’ means a good that
is used in the production of another good, including a part,
ingredient, or indirect material.
(8) MATERIAL THAT IS SELF-PRODUCED.—The term ‘‘material
that is self-produced’’ means a material that is an originating
good produced by a producer of a good and used in the produc-
tion of that good.
(9) NONORIGINATING GOOD OR NONORIGINATING MATERIAL.—
The terms ‘‘nonoriginating good’’ and ‘‘nonoriginating material’’
mean a good or material, as the case may be, that does not
qualify as an originating good under this section.
(10) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.—
The term ‘‘packing materials and containers for shipment’’
H. R. 2738—15
means the goods used to protect a good during its transpor-
tation, and does not include the packaging materials and con-
tainers in which a good is packaged for retail sale.
(11) PREFERENTIAL TARIFF TREATMENT.—The term ‘‘pref-
erential tariff treatment’’ means the customs duty rate that
is applicable to an originating good pursuant to chapter 3
of the Agreement.
(12) PRODUCER.—The term ‘‘producer’’ means a person who
engages in the production of a good in the territory of Chile
or the United States.
(13) PRODUCTION.—The term ‘‘production’’ means growing,
mining, harvesting, fishing, raising, trapping, hunting, manu-
facturing, processing, assembling, or disassembling a good.
(14) RECOVERED GOODS.—
(A) IN GENERAL.—The term ‘‘recovered goods’’ means
materials in the form of individual parts that are the
result of—
(i) the complete disassembly of used goods into
individual parts; and
(ii) the cleaning, inspecting, testing, or other proc-
essing of those parts as necessary for improvement
to sound working condition by one or more of the
processes described in subparagraph (B), in order for
such parts to be assembled with other parts, including
other parts that have undergone the processes
described in this paragraph, in the production of a
remanufactured good.
(B) PROCESSES.—The processes referred to in subpara-
graph 
(A)(ii) 
are 
welding, 
flame 
spraying, 
surface
machining, knurling, plating, sleeving, and rewinding.
(15) REMANUFACTURED GOOD.—The term ‘‘remanufactured
good’’ means an industrial good assembled in the territory
of Chile or the United States, that is listed in Annex 4.18
of the Agreement, and—
(A) is entirely or partially comprised of recovered goods;
(B) has the same life expectancy and meets the same
performance standards as a new good; and
(C) enjoys the same factory warranty as such a new
good.
(o) PRESIDENTIAL PROCLAMATION AUTHORITY.—
(1) IN GENERAL.—The President is authorized to proclaim,
as part of the HTS—
(A) the provisions set out in Annex 4.1 of the Agree-
ment; and
(B) any additional subordinate category necessary to
carry out this title consistent with the Agreement.
(2) MODIFICATIONS.—
(A) IN GENERAL.—Subject to the consultation and lay-
over provisions of section 103(a), the President may pro-
claim modifications to the provisions proclaimed under the
authority of paragraph (1)(A), other than provisions of chap-
ters 50 through 63 of the HTS, as included in Annex
4.1 of the Agreement.
(B) 
ADDITIONAL
PROCLAMATIONS.—Notwithstanding
subparagraph (A), and subject to the consultation and lay-
over provisions of section 103(a), the President may
proclaim—
H. R. 2738—16
(i) modifications to the provisions proclaimed under
the authority of paragraph (1)(A) that are necessary
to implement an agreement with Chile pursuant to
article 3.20(5) of the Agreement; and
(ii) before the 1st anniversary of the date of the
enactment of this Act, modifications to correct any
typographical, clerical, or other nonsubstantive tech-
nical error regarding the provisions of chapters 50
through 63 of the HTS, as included in Annex 4.1 of
the Agreement.
SEC. 203. DRAWBACK.
(a) DEFINITION OF A GOOD SUBJECT TO CHILE FTA DRAWBACK.—
For purposes of this Act and the amendments made by subsection
(b), the term ‘‘good subject to Chile FTA drawback’’ means any
imported good other than the following:
(1) A good entered under bond for transportation and expor-
tation to Chile.
(2)(A) A good exported to Chile in the same condition
as when imported into the United States.
(B) For purposes of subparagraph (A)—
(i) processes such as testing, cleaning, repacking,
inspecting, sorting, or marking a good, or preserving it
in its same condition, shall not be considered to change
the condition of the good; and
(ii) if a good described in subparagraph (A) is commin-
gled with fungible goods and exported in the same condi-
tion, the origin of the good for the purposes of subsection
(j)(1) of section 313 of the Tariff Act of 1930 (19 U.S.C.
1313(j)(1)) may be determined on the basis of the inventory
methods provided for in the regulations implementing this
title.
(3) A good—
(A) that is—
(i) deemed to be exported from the United States;
(ii) used as a material in the production of another
good that is deemed to be exported to Chile; or
(iii) substituted for by a good of the same kind
and quality that is used as a material in the production
of another good that is deemed to be exported to Chile;
and
(B) that is delivered—
(i) to a duty-free shop;
(ii) for ship’s stores or supplies for a ship or air-
craft; or
(iii) for use in a project undertaken jointly by
the United States and Chile and destined to become
the property of the United States.
(4) A good exported to Chile for which a refund of customs
duties is granted by reason of—
(A) the failure of the good to conform to sample or
specification; or
(B) the shipment of the good without the consent of
the consignee.
(5) A good that qualifies under the rules of origin set
out in section 202 that is—
(A) exported to Chile;
H. R. 2738—17
(B) used as a material in the production of another
good that is exported to Chile; or
(C) substituted for by a good of the same kind and
quality that is used as a material in the production of
another good that is exported to Chile.
(b) CONSEQUENTIAL AMENDMENTS.—
(1) BONDED MANUFACTURING WAREHOUSES.—Section 311 of
the Tariff Act of 1930 (19 U.S.C. 1311) is amended by adding
at the end the following new paragraph:
‘‘No article manufactured in a bonded warehouse from materials
that are goods subject to Chile FTA drawback, as defined in section
203(a) 
of 
the 
United 
States-Chile 
Free 
Trade 
Agreement
Implementation Act, may be withdrawn from warehouse for expor-
tation to Chile without assessment of a duty on the materials
in their condition and quantity, and at their weight, at the time
of importation into the United States. The duty shall be paid
before the 61st day after the date of exportation, except that the
duty may be waived or reduced by—
‘‘(1) 100 percent during the 8-year period beginning on
January 1, 2004;
‘‘(2) 75 percent during the 1-year period beginning on
January 1, 2012;
‘‘(3) 50 percent during the 1-year period beginning on
January 1, 2013; and
‘‘(4) 25 percent during the 1-year period beginning on
January 1, 2014.’’.
(2) BONDED SMELTING AND REFINING WAREHOUSES.—Section
312 of the Tariff Act of 1930 (19 U.S.C. 1312) is amended—
(A) in paragraph (1) of subsection (b), by striking
‘‘except that’’ and all that follows through subparagraph
(B) and inserting the following: ‘‘except that—
‘‘(A) in the case of a withdrawal for exportation of
such a product to a NAFTA country, as defined in section
2(4) of the North American Free Trade Agreement
Implementation Act, if any of the imported metal-bearing
materials are goods subject to NAFTA drawback, as defined
in section 203(a) of that Act, the duties on the materials
shall be paid, and the charges against the bond canceled,
before the 61st day after the date of exportation; but upon
the presentation, before such 61st day, of satisfactory evi-
dence of the amount of any customs duties paid to the
NAFTA country on the product, the duties on the materials
may be waived or reduced (subject to section 508(b)(2)(B))
in an amount that does not exceed the lesser of—
‘‘(i) the total amount of customs duties owed on
the materials on importation into the United States,
or
‘‘(ii) the total amount of customs duties paid to
the NAFTA country on the product, and
‘‘(B) in the case of a withdrawal for exportation of
such a product to Chile, if any of the imported metal-
bearing materials are goods subject to Chile FTA drawback,
as defined in section 203(a) of the United States-Chile
Free Trade Agreement Implementation Act, the duties on
the materials shall be paid, and the charges against the
H. R. 2738—18
bond canceled, before the 61st day after the date of expor-
tation, except that the duties may be waived or reduced
by—
‘‘(i) 100 percent during the 8-year period beginning
on January 1, 2004,
‘‘(ii) 75 percent during the 1-year period beginning
on January 1, 2012,
‘‘(iii) 50 percent during the 1-year period beginning
on January 1, 2013, and
‘‘(iv) 25 percent during the 1-year period beginning
on January 1, 2014, or’’;
(B) in paragraph (4) of subsection (b), by striking
‘‘except that’’ and all that follows through subparagraph
(B) and inserting the following: ‘‘except that—
‘‘(A) in the case of a withdrawal for exportation of
such a product to a NAFTA country, as defined in section
2(4) of the North American Free Trade Agreement
Implementation Act, if any of the imported metal-bearing
materials are goods subject to NAFTA drawback, as defined
in section 203(a) of that Act, the duties on the materials
shall be paid, and the charges against the bond canceled,
before the 61st day after the date of exportation; but upon
the presentation, before such 61st day, of satisfactory evi-
dence of the amount of any customs duties paid to the
NAFTA country on the product, the duties on the materials
may be waived or reduced (subject to section 508(b)(2)(B))
in an amount that does not exceed the lesser of—
‘‘(i) the total amount of customs duties owed on
the materials on importation into the United States,
or
‘‘(ii) the total amount of customs duties paid to
the NAFTA country on the product, and
‘‘(B) in the case of a withdrawal for exportation of
such a product to Chile, if any of the imported metal-
bearing materials are goods subject to Chile FTA drawback,
as defined in section 203(a) of the United States-Chile
Free Trade Agreement Implementation Act, the duties on
the materials shall be paid, and the charges against the
bond canceled, before the 61st day after the date of expor-
tation, except that the duties may be waived or reduced
by—
‘‘(i) 100 percent during the 8-year period beginning
on January 1, 2004,
‘‘(ii) 75 percent during the 1-year period beginning
on January 1, 2012,
‘‘(iii) 50 percent during the 1-year period beginning
on January 1, 2013, and
‘‘(iv) 25 percent during the 1-year period beginning
on January 1, 2014, or’’; and
(C) in subsection (d), in the matter preceding para-
graph (1), by striking ‘‘except that’’ and all that follows
through the end of paragraph (2) and inserting the fol-
lowing: ‘‘except that—
‘‘(1) in the case of a withdrawal for exportation to a NAFTA
country, as defined in section 2(4) of the North American Free
Trade Agreement Implementation Act, if any of the imported
metal-bearing materials are goods subject to NAFTA drawback,
H. R. 2738—19
as defined in section 203(a) of that Act, charges against the
bond shall be paid before the 61st day after the date of expor-
tation; but upon the presentation, before such 61st day, of
satisfactory evidence of the amount of any customs duties paid
to the NAFTA country on the product, the bond shall be credited
(subject to section 508(b)(2)(B)) in an amount not to exceed
the lesser of—
‘‘(A) the total amount of customs duties paid or owed
on the materials on importation into the United States,
or
‘‘(B) the total amount of customs duties paid to the
NAFTA country on the product; and
‘‘(2) in the case of a withdrawal for exportation to Chile,
if any of the imported metal-bearing materials are goods subject
to Chile FTA drawback, as defined in section 203(a) of the
United States-Chile Free Trade Agreement Implementation Act,
charges against the bond shall be paid before the 61st day
after the date of exportation, and the bond shall be credited
in an amount equal to—
‘‘(A) 100 percent of the total amount of customs duties
paid or owed on the materials on importation into the
United States during the 8-year period beginning on
January 1, 2004,
‘‘(B) 75 percent of the total amount of customs duties
paid or owed on the materials on importation into the
United States during the 1-year period beginning on
January 1, 2012,
‘‘(C) 50 percent of the total amount of customs duties
paid or owed on the materials on importation into the
United States during the 1-year period beginning on
January 1, 2013, and
‘‘(D) 25 percent of the total amount of customs duties
paid or owed on the materials on importation into the
United States during the 1-year period beginning on
January 1, 2014.’’.
(3) DRAWBACK.—Section 313 of the Tariff Act of 1930 (19
U.S.C. 1313) is amended—
(A) in paragraph (4) of subsection (j)—
(i) by striking ‘‘(4)’’ and inserting ‘‘(4)(A)’’; and
(ii) by adding at the end the following new
subparagraph:
‘‘(B) Beginning on January 1, 2015, the exportation to
Chile of merchandise that is fungible with and substituted
for imported merchandise, other than merchandise described
in paragraphs (1) through (5) of section 203(a) of the United
States-Chile Free Trade Agreement Implementation Act, shall
not constitute an exportation for purposes of paragraph (2).
The preceding sentence shall not be construed to permit the
substitution of unused drawback under paragraph (2) of this
subsection with respect to merchandise described in paragraph
(2) of section 203(a) of the United States-Chile Free Trade
Agreement Implementation Act.’’;
(B) in subsection (n)—
(i) by striking ‘‘(n)’’ and inserting the following:
‘‘(n) REFUNDS, WAIVERS, OR REDUCTIONS UNDER CERTAIN FREE
TRADE AGREEMENTS.—’’;
(ii) in paragraph (1)—
H. R. 2738—20
(I) by striking ‘‘; and’’ at the end of subpara-
graph (B);
(II) by striking the period at the end of
subparagraph (C) and inserting ‘‘; and’’; and
(III) by adding at the end the following new
subparagraph:
‘‘(D) the term ‘good subject to Chile FTA drawback’ has
the meaning given that term in section 203(a) of the United
States-Chile Free Trade Agreement Implementation Act.’’; and
(iii) by adding the following new paragraph at
the end:
‘‘(4)(A) For purposes of subsections (a), (b), (f), (h), (j)(2), (p),
and (q), if an article that is exported to Chile is a good subject
to Chile FTA drawback, no customs duties on the good may be
refunded, waived, or reduced, except as provided in subparagraph
(B).
‘‘(B) The customs duties referred to in subparagraph (A) may
be refunded, waived, or reduced by—
‘‘(i) 100 percent during the 8-year period beginning on
January 1, 2004;
‘‘(ii) 75 percent during the 1-year period beginning on
January 1, 2012;
‘‘(iii) 50 percent during the 1-year period beginning on
January 1, 2013; and
‘‘(iv) 25 percent during the 1-year period beginning on
January 1, 2014.’’; and
(C) in subsection (o)—
(i) by striking ‘‘(o)’’ and inserting the following:
‘‘(o) SPECIAL RULES FOR CERTAIN VESSELS AND IMPORTED MATE-
RIALS.—’’; and
(ii) by adding at the end the following new para-
graphs:
‘‘(3) For purposes of subsection (g), if—
‘‘(A) a vessel is built for the account and ownership of
a resident of Chile or the Government of Chile, and
‘‘(B) imported materials that are used in the construction
and equipment of the vessel are goods subject to Chile FTA
drawback, as defined in section 203(a) of the United States-
Chile Free Trade Agreement Implementation Act,
no customs duties on such materials may be refunded, waived,
or reduced, except as provided in paragraph (4).
‘‘(4) The customs duties referred to in paragraph (3) may be
refunded, waived or reduced by—
‘‘(A) 100 percent during the 8-year period beginning on
January 1, 2004;
‘‘(B) 75 percent during the 1-year period beginning on
January 1, 2012;
‘‘(C) 50 percent during the 1-year period beginning on
January 1, 2013; and
‘‘(D) 25 percent during the 1-year period beginning on
January 1, 2014.’’.
(4) MANIPULATION
IN
WAREHOUSE.—Section 562 of the
Tariff Act of 1930 (19 U.S.C. 1562) is amended—
(A) in paragraph (3), by striking ‘‘to a NAFTA country’’
and inserting ‘‘to Chile, to a NAFTA country,’’;
(B) by striking ‘‘and’’ at the end of paragraph (4)(B);
H. R. 2738—21
(C) by striking the period at the end of paragraph
(5) and inserting ‘‘; and’’; and
(D) by inserting after paragraph (5) the following:
‘‘(6)(A) without payment of duties for exportation to Chile,
if the merchandise is of a kind described in any of paragraphs
(1) through (5) of section 203(a) of the United States-Chile
Free Trade Agreement Implementation Act; and
‘‘(B) for exportation to Chile if the merchandise consists
of goods subject to Chile FTA drawback, as defined in section
203(a) of the United States-Chile Free Trade Agreement
Implementation Act, except that—
‘‘(i) the merchandise may not be withdrawn from ware-
house without assessment of a duty on the merchandise
in its condition and quantity, and at its weight, at the
time of withdrawal from the warehouse with such additions
to, or deductions from, the final appraised value as may
be necessary by reason of a change in condition, and
‘‘(ii) duty shall be paid on the merchandise before the
61st day after the date of exportation, except that such
duties may be waived or reduced by—
‘‘(I) 100 percent during the 8-year period beginning
on January 1, 2004,
‘‘(II) 75 percent during the 1-year period beginning
on January 1, 2012,
‘‘(III) 50 percent during the 1-year period beginning
on January 1, 2013, and
‘‘(IV) 25 percent during the 1-year period beginning
on January 1, 2014.’’.
(5) FOREIGN TRADE ZONES.—Section 3(a) of the Act of June
18, 1934 (commonly known as the ‘‘Foreign Trade Zones Act’’;
19 U.S.C. 81c(a)) is amended by striking the end period and
inserting the following: ‘‘: Provided further, That no merchan-
dise that consists of goods subject to Chile FTA drawback,
as defined in section 203(a) of the United States-Chile Free
Trade Agreement Implementation Act, that is manufactured
or otherwise changed in condition shall be exported to Chile
without an assessment of a duty on the merchandise in its
condition and quantity, and at its weight, at the time of its
exportation (or if the privilege in the first proviso to this sub-
section was requested, an assessment of a duty on the merchan-
dise in its condition and quantity, and at its weight, at the
time of its admission into the zone) and the payment of the
assessed duty before the 61st day after the date of exportation
of the article, except that the customs duty may be waived
or reduced by (1) 100 percent during the 8-year period beginning
on January 1, 2004; (2) 75 percent during the 1-year period
beginning on January 1, 2012; (3) 50 percent during the 1-
year period beginning on January 1, 2013; and (4) 25 percent
during the 1-year period beginning on January 1, 2014.’’.
(c) INAPPLICABILITY
TO COUNTERVAILING
AND ANTIDUMPING
DUTIES.—Nothing in this section or the amendments made by this
section shall be considered to authorize the refund, waiver, or
reduction of countervailing duties or antidumping duties imposed
on an imported good.
H. R. 2738—22
SEC. 204. CUSTOMS USER FEES.
Section 13031(b) of the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 (19 U.S.C. 58c(b)) is amended by inserting after
paragraph (11) the following:
‘‘(12) No fee may be charged under subsection (a) (9) or (10)
with respect to goods that qualify as originating goods under section
202 of the United States-Chile Free Trade Agreement Implementa-
tion 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.’’.
SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; DENIAL OF
PREFERENTIAL TARIFF TREATMENT; FALSE CERTIFI-
CATES OF ORIGIN.
(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 (6) as paragraph (7);
and
(B) by inserting after paragraph (5) the following new
paragraph:
‘‘(6) PRIOR
DISCLOSURE
REGARDING
CLAIMS
UNDER
THE
UNITED STATES-CHILE FREE TRADE AGREEMENT.—An importer
shall not be subject to penalties under subsection (a) for making
an incorrect claim that a good qualifies as an originating good
under section 202 of the United States-Chile Free Trade Agree-
ment Implementation Act if the importer, in accordance with
regulations issued by the Secretary of the Treasury, voluntarily
makes a corrected declaration and pays any duties owing.’’;
and
(2) by adding at the end the following new subsection:
‘‘(g) FALSE CERTIFICATIONS
OF ORIGIN UNDER
THE UNITED
STATES-CHILE FREE TRADE AGREEMENT.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), it is unlawful
for any person to certify falsely, by fraud, gross negligence,
or negligence, in a Chile FTA Certificate of Origin (as defined
in section 508(f)(1)(B) of this Act that a good exported from
the United States qualifies as an originating good under the
rules of origin set out in section 202 of the United States-
Chile Free Trade Agreement Implementation Act. The proce-
dures and penalties of this section that apply to a violation
of subsection (a) also apply to a violation of this subsection.
‘‘(2) IMMEDIATE AND VOLUNTARY DISCLOSURE OF INCORRECT
INFORMATION.—No penalty shall be imposed under this sub-
section if, immediately after an exporter or producer that issued
a Chile FTA Certificate of Origin has reason to believe that
such certificate contains or is based on incorrect information,
the exporter or producer voluntarily provides written notice
of such incorrect information to every person to whom the
certificate was issued.
‘‘(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 Chile FTA Certificate of Origin but was
later rendered incorrect due to a change in circumstances;
and