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 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 4.1 of the 
Agreement may be calculated by the importer, 
exporter, or producer of the good, on the basis 
of 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 in 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 that 
are acquired and used by the producer in 
the production of the automotive good, but 
does not include the value of a material 
that is self-produced. 
(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 formula contained in 
subparagraph (A), over the producer’s fis-
cal year— 
(I) with respect to all motor vehi-
cles in any 1 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 one or 
more of the CAFTA–DR countries. 
(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 
vehicles, and is produced in the same 
plant in the territory of a CAFTA– 
DR country, as the good described 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 a CAFTA– 
DR country, 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 a CAFTA–DR country as the 
good described in clause (i) for which 
regional value-content is being cal-
culated. 
(D) OTHER
AUTOMOTIVE
GOODS.—For 
purposes of determining the regional value-con-
tent under subparagraph (A) for automotive 
goods 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 formula contained in subpara-
graph (A) over— 
(I) the fiscal year of the motor 
vehicle producer to whom the auto-
motive goods are sold, 
(II) any quarter or month, or 
(III) its own fiscal year,
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 automotive 
goods that are exported to the territory of 
one or more of the CAFTA–DR countries. 
(E) CALCULATING
NET
COST.—The im-
porter, exporter, or producer shall, consistent 
with the provisions regarding allocation of costs 
set out in generally accepted accounting prin-
ciples, determine the net cost of an automotive 
good under subparagraph (B) by— 
(i) calculating the total cost incurred 
with respect to all goods produced by the 
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 all such costs does not in-
clude any sales promotion, marketing and 
after-sales service costs, royalties, shipping 
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 Implemen-
tation of Article VII of the General Agreement 
on Tariffs and Trade 1994 referred to in sec-
tion 101(d)(8) of the Uruguay Round Agree-
ments Act, as set forth in regulations promul-
gated by the Secretary of the Treasury pro-
viding for the application of such Articles in the 
absence of an importation; or 
(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 one or more of the 
CAFTA–DR countries to the location of 
the producer. 
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of one or more of the CAFTA–DR 
countries, other than duties or taxes that 
are waived, refunded, refundable, or other-
wise recoverable, including credit against 
duty or tax paid or payable. 
(iii) The cost of waste and spoilage re-
sulting from the use of the material in the 
production of the good, less the value of 
renewable scrap or 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 one or more of the 
CAFTA–DR countries to the location of 
the producer. 
(ii) Duties, taxes, and customs broker-
age fees on the material paid in the terri-
tory of one or more of the CAFTA–DR 
countries, other than duties or taxes that 
are waived, refunded, refundable, or other-
wise recoverable, including credit against 
duty or tax paid or payable. 
(iii) The cost of waste and spoilage re-
sulting from the use of the material in the 
production of the good, less the value of 
renewable scrap or byproducts. 
(iv) The cost of originating materials 
used in the production of the nonorigi-
nating material in the territory of one or 
more of the CAFTA–DR countries. 
(e) ACCUMULATION.— 
(1) ORIGINATING MATERIALS USED IN PRODUC-
TION
OF
GOODS
OF
ANOTHER
COUNTRY.—Origi-
nating materials from the territory of one or more 
of the CAFTA–DR countries that are used in the 
production of a good in the territory of another 
CAFTA–DR country shall be considered to originate 
in the territory of that other country. 
(2) MULTIPLE PROCEDURES.—A good that is 
produced in the territory of one or more of the 
CAFTA–DR countries by 1 or more producers is an 
originating good if the good satisfies the require-
ments of subsection (b) and all other applicable re-
quirements of this section. 
(f) DE MINIMIS AMOUNTS OF NONORIGINATING MA-
TERIALS.— 
(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 4.1 
of the Agreement is an originating good if— 
(A) the value of all nonoriginating mate-
rials that—
(i) are used in the production of the 
good, and 
(ii) do not undergo the applicable 
change in tariff classification (set out in 
Annex 4.1 of the Agreement), 
does not exceed 10 percent of the adjusted 
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 4, or a nonoriginating dairy prepara-
tion containing over 10 percent by weight of 
milk solids provided for in subheading 1901.90 
or 2106.90, that is used in the production of a 
good provided for in chapter 4. 
(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,
that is used in the production of the following 
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. 
(vi) Animal feeds containing over 10 
percent by weight of milk solids provided 
for in subheading 2309.90. 
(C) 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. 
(D) A nonoriginating material provided for 
in heading 0901 or 2101 that is used in the 
production of a good provided for in heading 
0901 or 2101. 
(E) A nonoriginating material provided for 
in heading 1006 that is used in the production 
of a good provided for in heading 1102 or 1103 
or subheading 1904.90. 
(F) A nonoriginating material provided for 
in chapter 15 that is used in the production of 
a good provided for in chapter 15. 
(G) A nonoriginating material provided for 
in heading 1701 that is used in the production 
of a good provided for in any of headings 1701 
through 1703. 
(H) A nonoriginating material provided for 
in chapter 17 that is used in the production of 
a good provided for in subheading 1806.10. 
(I) Except as provided in subparagraphs 
(A) through (H) and Annex 4.1 of the Agree-
ment, a nonoriginating material used in the
production of a good provided for in any of 
chapters 1 through 24, unless the nonorigi-
nating material is provided for in a different 
subheading than the good for which origin is 
being determined under this section. 
(3) TEXTILE OR APPAREL GOODS.— 
(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 out 
in Annex 4.1 of the Agreement, shall be consid-
ered to be an originating good if— 
(i) the total weight of all such fibers 
or yarns in that component is not more 
than 10 percent of the total weight of that 
component; or 
(ii) the yarns are those described in 
section 204(b)(3)(B)(vi)(IV) of the Andean 
Trade 
Preference 
Act 
(19 
U.S.C. 
3203(b)(3)(B)(vi)(IV))(as in effect on the 
date of the enactment of this Act).
(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 in 
the territory of a CAFTA–DR country. 
(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 
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 
CAFTA–DR country in which the 
production is performed; or 
(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 that 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 out in Annex 
4.1 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, regardless of whether they ap-
pear specified or separately identified in the in-
voice for the good; and 
(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 out in Annex 4.1 of the Agreement, and, if the good 
is subject to a regional value-content requirement, the 
value of such packaging materials and containers shall be 
taken into account as originating or nonoriginating mate-
rials, as the case may be, in calculating the regional value- 
content of the good. 
(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. 
(k) INDIRECT MATERIALS.—An indirect material 
shall be treated as an originating material without regard 
to where it is produced. 
(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 territories of the CAFTA–DR 
countries, other than unloading, reloading, or any
other operation necessary to preserve the good in 
good condition or to transport the good to the terri-
tory of a CAFTA–DR country; or 
(2) does not remain under the control of cus-
toms authorities in the territory of a country other 
than a CAFTA–DR country. 
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN 
SETS.—Notwithstanding the rules set forth in Annex 4.1 
of the Agreement, goods classifiable as goods put up in 
sets for retail sale as provided for in General Rule of Inter-
pretation 3 of the HTS shall not be considered to be origi-
nating goods unless— 
(1) each of the goods in the set is an origi-
nating good; or 
(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 a good, other than a tex-
tile or apparel good, 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, adjusted, if necessary, to exclude any costs, 
charges, or expenses incurred for transportation, in-
surance, and related services incident to the inter-
national shipment of the merchandise from the coun-
try of exportation to the place of importation. 
(2) 
CAFTA–DR 
COUNTRY.—The 
term 
‘‘CAFTA–DR country’’ means— 
(A) the United States; and 
(B) Costa Rica, the Dominican Republic, 
El Salvador, Guatemala, Honduras, or Nica-
ragua, for such time as the Agreement is in 
force between the United States and that coun-
try. 
(3) CLASS
OF
MOTOR
VEHICLES.—The term 
‘‘class of motor vehicles’’ means any one of the fol-
lowing categories of motor vehicles: 
(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. 
(4) 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. 
(5) GENERALLY ACCEPTED ACCOUNTING PRIN-
CIPLES.—The term ‘‘generally accepted accounting 
principles’’ means the recognized consensus or sub-
stantial authoritative support in the territory of a 
CAFTA–DR country with respect to the recording 
of revenues, expenses, costs, assets, and liabilities, 
the disclosure of information, and the preparation of
financial statements. The principles may encompass 
broad guidelines of general application as well as de-
tailed standards, practices, and procedures. 
(6) GOODS WHOLLY OBTAINED OR PRODUCED 
ENTIRELY IN THE TERRITORY OF ONE OR MORE OF 
THE
CAFTA–DR
COUNTRIES.—The term ‘‘goods 
wholly obtained or produced entirely in the territory 
of one or more of the CAFTA–DR countries’’ 
means— 
(A) plants and plant products harvested or 
gathered in the territory of one or more of the 
CAFTA–DR countries; 
(B) live animals born and raised in the ter-
ritory of one or more of the CAFTA–DR coun-
tries; 
(C) goods obtained in the territory of one 
or more of the CAFTA–DR countries from live 
animals; 
(D) goods obtained from hunting, trap-
ping, fishing or aquaculture conducted in the 
territory of one or more of the CAFTA–DR 
countries; 
(E) minerals and other natural resources 
not included in subparagraphs (A) through (D)
that are extracted or taken in the territory of 
one or more of the CAFTA–DR countries; 
(F) fish, shellfish, and other marine life 
taken from the sea, seabed, or subsoil outside 
the territory of one or more of the CAFTA–DR 
countries by vessels registered or recorded with 
a CAFTA–DR country and flying the flag of 
that country; 
(G) goods produced on board factory ships 
from the goods referred to in subparagraph (F), 
if such factory ships are registered or recorded 
with that CAFTA–DR country and fly the flag 
of that country; 
(H) goods taken by a CAFTA–DR country 
or a person of a CAFTA–DR country from the 
seabed or subsoil outside territorial waters, if a 
CAFTA–DR country has rights to exploit such 
seabed or subsoil; 
(I) goods taken from outer space, if the 
goods are obtained by a CAFTA–DR country or 
a person of a CAFTA–DR country and not 
processed in the territory of a country other 
than a CAFTA–DR country; 
(J) waste and scrap derived from—
(i) manufacturing or processing oper-
ations in the territory of one or more of 
the CAFTA–DR countries; or 
(ii) used goods collected in the terri-
tory of one or more of the CAFTA–DR 
countries, if such goods are fit only for the 
recovery of raw materials; 
(K) recovered goods derived in the terri-
tory of one or more of the CAFTA–DR coun-
tries from used goods, and used in the territory 
of a CAFTA–DR country in the production of 
remanufactured goods; and 
(L) goods produced in the territory of one 
or more of the CAFTA–DR countries exclu-
sively from— 
(i) goods referred to in any of sub-
paragraphs (A) through (J), or 
(ii) the derivatives of goods referred 
to in clause (i), 
at any stage of production. 
(7) IDENTICAL
GOODS.—The term ‘‘identical 
goods’’ means identical goods as defined in the 
Agreement on Implementation of Article VII of the 
General Agreement on Tariffs and Trade 1994 re-
ferred to in section 101(d)(8) of the Uruguay Round 
Agreements Act; 
(8) INDIRECT MATERIAL.—The term ‘‘indirect 
material’’ means a good used in the production, test-
ing, or inspection of a good but not physically incor-
porated into the good, or a good used in the mainte-
nance of buildings or the operation of equipment as-
sociated with the production of a good, including— 
(A) fuel and energy; 
(B) tools, dies, and molds; 
(C) spare parts and materials used in the 
maintenance of equipment or buildings; 
(D) lubricants, greases, compounding ma-
terials, and other materials used in production 
or used to operate equipment or buildings; 
(E) gloves, glasses, footwear, clothing, 
safety equipment, and supplies; 
(F) equipment, devices, and supplies used 
for testing or inspecting the good; 
(G) catalysts and solvents; and 
(H) any other goods that are not incor-
porated into the good but the use of which in 
the production of the good can reasonably be 
demonstrated to be a part of that production.
(9) MATERIAL.—The term ‘‘material’’ means a 
good that is used in the production of another good, 
including a part or an ingredient. 
(10) MATERIAL
THAT
IS
SELF-PRODUCED.— 
The term ‘‘material that is self-produced’’ means an 
originating material that is produced by a producer 
of a good and used in the production of that good. 
(11) MODEL
LINE.—The term ‘‘model line’’ 
means a group of motor vehicles having the same 
platform or model name. 
(12) 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. 
(13) 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 CAFTA–DR country 
in which the producer is located. 
(14) NONORIGINATING
GOOD
OR
NONORIGI-
NATING
MATERIAL.—The terms ‘‘nonoriginating 
good’’ and ‘‘nonoriginating material’’ mean a good
or material, as the case may be, that does not qual-
ify as originating under this section. 
(15) PACKING
MATERIALS
AND
CONTAINERS 
FOR SHIPMENT.—The term ‘‘packing materials and 
containers for shipment’’ means the goods used to 
protect a good during its transportation and does 
not include the packaging materials and containers 
in which a good is packaged for retail sale. 
(16) PREFERENTIAL
TARIFF
TREATMENT.— 
The term ‘‘preferential tariff treatment’’ means the 
customs duty rate, and the treatment under article 
3.10.4 of the Agreement, that are applicable to an 
originating good pursuant to the Agreement. 
(17) PRODUCER.—The term ‘‘producer’’ means 
a person who engages in the production of a good 
in the territory of a CAFTA–DR country. 
(18) PRODUCTION.—The term ‘‘production’’ 
means growing, mining, harvesting, fishing, raising, 
trapping, hunting, manufacturing, processing, as-
sembling, or disassembling a good. 
(19) REASONABLY ALLOCATE.—The term ‘‘rea-
sonably allocate’’ means to apportion in a manner 
that would be appropriate under generally accepted 
accounting principles.
(20) 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. 
(21) REMANUFACTURED GOOD.—The term ‘‘re-
manufactured good’’ means a good that is classified 
under chapter 84, 85, or 87, or heading 9026, 9031, 
or 9032, other than a good classified under heading 
8418 or 8516, 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 new 
good. 
(22) TOTAL
COST.—The term ‘‘total cost’’ 
means all product costs, period costs, and other 
costs for a good incurred in the territory of one or 
more of the CAFTA–DR countries. 
(23) USED.—The term ‘‘used’’ means used 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 out in Annex 4.1 of 
the Agreement; and 
(B) any additional subordinate category 
necessary to carry out this title consistent with 
the Agreement. 
(2) FABRICS AND YARNS NOT AVAILABLE IN 
COMMERCIAL
QUANTITIES
IN
THE
UNITED 
STATES.—The President is authorized to proclaim 
that a fabric or yarn is added to the list in Annex 
3.25 of the Agreement in an unrestricted quantity, 
as provided in article 3.25.4(e) of the Agreement. 
(3) MODIFICATIONS.— 
(A) IN GENERAL.—Subject to the consulta-
tion and layover provisions of section 104, the 
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 
4.1 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 before the 
end of the 1-year period beginning on the date 
of the enactment of this Act, modifications to 
correct any typographical, clerical, or other non-
substantive technical error regarding the provi-
sions of chapters 50 through 63, as included in 
Annex 4.1 of the Agreement. 
(4) FABRICS, YARNS, OR FIBERS NOT AVAIL-
ABLE IN COMMERCIAL QUANTITIES IN THE CAFTA– 
DR COUNTRIES.— 
(A) IN GENERAL.—Notwithstanding para-
graph 3(A), the list of fabrics, yarns, and fibers 
set out in Annex 3.25 of the Agreement may be 
modified as provided for in this paragraph. 
(B) DEFINITIONS.—In this paragraph: 
(i) The term ‘‘interested entity’’ 
means the government of a CAFTA–DR 
country other than the United States, a 
potential or actual purchaser of a textile or 
apparel good, or a potential or actual sup-
plier of a textile or apparel good. 
(ii) All references to ‘‘day’’ and 
‘‘days’’ exclude Saturdays, Sundays, and 
legal holidays.
(C) REQUESTS TO ADD FABRICS, YARNS, 
OR FIBERS.—(i) An interested entity may re-
quest the President to determine that a fabric, 
yarn, or fiber is not available in commercial 
quantities in a timely manner in the CAFTA– 
DR countries and to add that fabric, yarn, or 
fiber to the list in Annex 3.25 of the Agreement 
in a restricted or unrestricted quantity. 
(ii) After receiving a request under clause 
(i), the President may determine whether— 
(I) the fabric, yarn, or fiber is avail-
able in commercial quantities in a timely 
manner in the CAFTA–DR countries; or 
(II) any interested entity objects to 
the request. 
(iii) The President may, within the time 
periods specified in clause (iv), proclaim that a 
fabric, yarn, or fiber that is the subject of a re-
quest submitted under clause (i) is added to the 
list in Annex 3.25 of the Agreement in an unre-
stricted quantity, or in any restricted quantity 
that the President may establish, if the Presi-
dent determines under clause (ii) that— 
(I) the fabric, yarn, or fiber is not 
available in commercial quantities in a
timely manner in the CAFTA–DR coun-
tries; or 
(II) no interested entity has objected 
to the request. 
(iv) The time periods within which the 
President may issue a proclamation under 
clause (iii) are— 
(I) not later than 30 days after the 
date on which the request is submitted 
under clause (i); or 
(II) not later than 44 days after the 
request is submitted, if the President de-
termines, within 30 days after the date on 
which the request is submitted, that the 
President does not have sufficient informa-
tion to make a determination under clause 
(ii). 
(v) Notwithstanding section 103(a)(2), a 
proclamation made under clause (iii) shall take 
effect on the date on which the text of the proc-
lamation is published in the Federal Register. 
(vi) Not later than 6 months after pro-
claiming under clause (iii) that a fabric, yarn, 
or fiber is added to the list in Annex 3.25 of 
the Agreement in a restricted quantity, the
President may eliminate the restriction if the 
President determines that the fabric, yarn, or 
fiber is not available in commercial quantities in 
a timely manner in the CAFTA–DR countries. 
(D) DEEMED APPROVAL OF REQUEST.—If, 
after an interested entity submits a request 
under subparagraph (C)(i), the President does 
not, within the applicable time period specified 
in subparagraph (C)(iv), make a determination 
under subparagraph (C)(ii) regarding the re-
quest, the fabric, yarn, or fiber that is the sub-
ject of the request shall be considered to be 
added, in an unrestricted quantity, to the list in 
Annex 3.25 of the Agreement beginning— 
(i) 45 days after the date on which 
the request was submitted; or 
(ii) 60 days after the date on which 
the request was submitted, if the President 
made a determination under subparagraph 
(C)(iv)(II). 
(E) REQUESTS TO RESTRICT OR REMOVE 
FABRICS, YARNS, OR
FIBERS.—(i) Subject to 
clause (ii), an interested entity may request the 
President to restrict the quantity of, or remove
from the list in Annex 3.25 of the Agreement, 
any fabric, yarn, or fiber— 
(I) that has been added to that list in 
an unrestricted quantity pursuant to para-
graph (2) or subparagraph (C)(iii) or (D); 
or 
(II) with respect to which the Presi-
dent has eliminated a restriction under 
subparagraph (C)(vi). 
(ii) An interested entity may submit a re-
quest under clause (i) at any time beginning 6 
months after the date of the action described in 
subclause (I) or (II) of that clause. 
(iii) Not later than 30 days after the date 
on which a request under clause (i) is sub-
mitted, the President may proclaim an action 
provided for under clause (i) if the President 
determines that the fabric, yarn, or fiber that 
is the subject of the request is available in com-
mercial quantities in a timely manner in the 
CAFTA–DR countries. 
(iv) A proclamation declared under clause 
(iii) shall take effect no earlier than the date 
that is 6 months after the date on which the
text of the proclamation is published in the 
Federal 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 (vi) or (E)(iii). 
SEC. 204. 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 (14), the following: 
‘‘(15) No fee may be charged under subsection 
(a) (9) or (10) with respect to goods that qualify as 
originating goods under section 203 of the Domini-
can Republic-Central America-United States 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 Ac-
count.’’.
SEC. 205. RETROACTIVE APPLICATION FOR CERTAIN LIQ-
UIDATIONS AND RELIQUIDATIONS OF TEX-
TILE OR APPAREL GOODS. 
(a) IN GENERAL.—Notwithstanding section 514 of 
the Tariff Act of 1930 (19 U.S.C. 1514) or any other pro-
vision of law, and subject to subsection (c), an entry— 
(1) of a textile or apparel good— 
(A) of a CAFTA–DR country that the 
United States Trade Representative has des-
ignated as an eligible country under subsection 
(b), and 
(B) that would have qualified as an origi-
nating good under section 203 if the good had 
been entered after the date of entry into force 
of the Agreement for that country, 
(2) that was made on or after January 1, 2004, 
and before the date of the entry into force of the 
Agreement with respect to that country, and 
(3) for which customs duties in excess of the 
applicable rate of duty for that good set out in the 
Schedule of the United States to Annex 3.3 of the 
Agreement were paid, 
shall be liquidated or reliquidated at the applicable rate 
of duty for that good set out in the Schedule of the United 
States to Annex 3.3 of the Agreement, and the Secretary
of the Treasury shall refund any excess customs duties 
paid with respect to such entry. 
(b) ELIGIBLE COUNTRY.—The United States Trade 
Representative shall determine, in accordance with article 
3.20 of the Agreement, which CAFTA–DR countries are 
eligible countries for purposes of this section, and shall 
publish a list of all such countries in the Federal Register. 
(c) REQUESTS.—Liquidation or reliquidation may be 
made under subsection (a) with respect to an entry of a 
textile or apparel good only if a request therefor is filed 
with the Bureau of Customs and Border Protection, with-
in such period as the Bureau of Customs and Border Pro-
tection shall establish by regulation in consultation with 
the Secretary of the Treasury, that contains sufficient in-
formation to enable the Bureau of Customs and Border 
Protection— 
(1)(A) to locate the entry; or 
(B) to reconstruct the entry if it cannot be lo-
cated; and 
(2) to determine that the good satisfies the con-
ditions set out in subsection (a). 
(d) DEFINITION.—As used in this section, the term 
‘‘entry’’ includes a withdrawal from warehouse for con-
sumption.
SEC. 206. 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 (9) as 
paragraph (10); and 
(B) by inserting after paragraph (8) the 
following new paragraph: 
‘‘(9) PRIOR
DISCLOSURE
REGARDING
CLAIMS 
UNDER THE DOMINICAN REPUBLIC-CENTRAL AMER-
ICA-UNITED STATES FREE TRADE AGREEMENT.—An 
importer shall not be subject to penalties under sub-
section (a) for making an incorrect claim that a 
good qualifies as an originating good under section 
203 of the Dominican Republic-Central America- 
United States Free Trade Agreement Implementa-
tion Act if the importer, in accordance with regula-
tions issued by the Secretary of the Treasury, 
promptly and voluntarily makes a corrected declara-
tion and pays any duties owing.’’; and 
(2) by adding at the end the following new sub-
section:
‘‘(h) FALSE CERTIFICATIONS OF ORIGIN UNDER THE 
DOMINICAN
REPUBLIC-CENTRAL
AMERICA-UNITED 
STATES 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 CAFTA– 
DR certification of origin (as defined in section 
508(g)(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 203 of 
the Dominican Republic-Central America-United 
States Free Trade Agreement Implementation 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 CAFTA–DR certifi-
cation of origin has reason to believe that such cer-
tification contains or is based on incorrect informa-
tion, the exporter or producer voluntarily provides 
written notice of such incorrect information to every 
person to whom the certification was issued.
‘‘(3) EXCEPTION.—A person may not be consid-
ered to have violated paragraph (1) if— 
‘‘(A) the information was correct at the 
time it was provided in a CAFTA–DR certifi-
cation of 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: 
‘‘(h) DENIAL
OF PREFERENTIAL TARIFF TREAT-
MENT
UNDER
THE
DOMINICAN
REPUBLIC-CENTRAL 
AMERICA-UNITED STATES FREE TRADE AGREEMENT.— 
If the Bureau of Customs and Border Protection or the 
Bureau of Immigration and Customs Enforcement finds 
indications of a pattern of conduct by an importer, ex-
porter, or producer of false or unsupported representa-
tions that goods qualify under the rules of origin set out 
in section 203 of the Dominican Republic-Central Amer-
ica-United States Free Trade Agreement Implementation 
Act, the Bureau of Customs and Border Protection, in ac-
cordance with regulations issued by the Secretary of the 
Treasury, may suspend preferential tariff treatment under 
the Dominican Republic-Central America-United States 
Free Trade Agreement to entries of identical goods cov-
ered by subsequent representations by that importer, ex-
porter, or producer until the Bureau of Customs and Bor-
der Protection determines that representations of that 
person are in conformity with such section 203.’’. 
SEC. 207. RELIQUIDATION OF ENTRIES. 
Subsection (d) of section 520 of the Tariff Act of 
1930 (19 U.S.C. 1520(d)) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘or section 202 of the United States-Chile 
Free Trade Agreement Implementation Act’’ and in-
serting ‘‘, section 202 of the United States-Chile 
Free Trade Agreement Implementation Act, or sec-
tion 203 of the Dominican Republic-Central Amer-
ica-United States Free Trade Agreement Implemen-
tation Act’’; and 
(2) in paragraph (2), by inserting ‘‘or certifi-
cations’’ after ‘‘other certificates’’. 
SEC. 208. RECORDKEEPING REQUIREMENTS. 
Section 508 of the Tariff Act of 1930 (19 U.S.C. 
1508) is amended—
(1) by redesignating subsection (g) as sub-
section (h); 
(2) by inserting after subsection (f) the fol-
lowing new subsection: 
‘‘(g) CERTIFICATIONS OF ORIGIN FOR GOODS EX-
PORTED UNDER
THE DOMINICAN REPUBLIC-CENTRAL 
AMERICA-UNITED STATES 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 
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) CAFTA–DR CERTIFICATION OF ORI-
GIN.—The term ‘CAFTA–DR certification of 
origin’ means the certification established under
article 4.16 of the Dominican Republic-Central 
America-United States Free Trade Agreement 
that a good qualifies as an originating good 
under such Agreement. 
‘‘(2) EXPORTS TO CAFTA–DR COUNTRIES.—Any 
person who completes and issues a CAFTA–DR cer-
tification 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 inspec-
tion all records and supporting documents related to 
the origin of the good (including the certification or 
copies thereof). 
‘‘(3) RETENTION PERIOD.—Records and sup-
porting documents shall be kept by the person who 
issued a CAFTA–DR certification of origin for at 
least 5 years after the date on which the certifi-
cation was issued.’’; and 
(3) in subsection (h), as so redesignated— 
(A) by inserting ‘‘or (g)’’ after ‘‘(f)’’; and 
(B) by striking ‘‘that subsection’’ and in-
serting ‘‘either such subsection’’. 
SEC. 209. 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 a CAFTA–DR 
country to conduct a verification pursuant to article 
3.24 of the Agreement for purposes of making a de-
termination under paragraph (2), the President may 
direct the Secretary to take appropriate action de-
scribed in subsection (b) while the verification is 
being conducted. 
(2) DETERMINATION.—A determination under 
this paragraph is a determination— 
(A) that an exporter or producer in that 
country is complying with applicable customs 
laws, regulations, and procedures regarding 
trade in textile or apparel goods, or 
(B) that a claim that a textile or apparel 
good exported or produced by such exporter or 
producer— 
(i) qualifies as an originating good 
under section 203 of this Act, or 
(ii) is a good of a CAFTA–DR coun-
try, 
is accurate. 
(b) APPROPRIATE ACTION DESCRIBED.—Appropriate 
action under subsection (a)(1) includes—