(2) CALCULATION OF ADDITIONAL DUTY.—The 
additional duty on a safeguard good under this sub-
section shall be— 
(A) in the case of a good classified under 
subheading 
1202.10.80, 
1202.20.80, 
2008.11.15, 2008.11.35, or 2008.11.60 of the 
HTS— 
(i) in years 1 through 5, an amount 
equal to 100 percent of the excess of the 
applicable NTR (MFN) rate of duty over 
the schedule rate of duty; 
(ii) in years 6 through 10, an amount 
equal to 75 percent of the excess of the ap-
plicable NTR (MFN) rate of duty over the 
schedule rate of duty; and 
(iii) in years 11 through 14, an 
amount equal to 50 percent of the excess 
of the applicable NTR (MFN) rate of duty 
over the schedule rate of duty; and 
(B) in the case of any other safeguard 
good— 
(i) in years 1 through 14, an amount 
equal to 100 percent of the excess of the 
applicable NTR (MFN) rate of duty over 
the schedule rate of duty;
(ii) in years 15 through 17, an 
amount equal to 75 percent of the excess 
of the applicable NTR (MFN) rate of duty 
over the schedule rate of duty; and 
(iii) in years 18 and 19, an amount 
equal to 50 percent of the excess of the ap-
plicable NTR (MFN) rate of duty over the 
schedule rate of duty. 
SEC. 203. RULES OF ORIGIN. 
(a) APPLICATION
AND INTERPRETATION.—In this 
section: 
(1) TARIFF
CLASSIFICATION.—The basis for 
any tariff classification is the HTS. 
(2) REFERENCE
TO
HTS.—Whenever in this 
section there is a reference to a chapter, heading, or 
subheading, such reference shall be a reference to a 
chapter, heading, or subheading of the HTS. 
(3) COST OR VALUE.—Any cost or value re-
ferred to in this section shall be recorded and main-
tained in accordance with the generally accepted ac-
counting principles applicable in the territory of the 
country in which the good is produced (whether the 
United States or another CAFTA–DR country). 
(b) ORIGINATING GOODS.—For purposes of this Act 
and for purposes of implementing the preferential tariff
treatment provided for under the Agreement, except as 
otherwise provided in this section, a good is an originating 
good if— 
(1) the good is a good wholly obtained or pro-
duced entirely in the territory of one or more of the 
CAFTA–DR countries; 
(2) the good— 
(A) is produced entirely in the territory of 
one or more of the CAFTA–DR countries, 
and— 
(i) each of the nonoriginating mate-
rials used in the production of the good 
undergoes an applicable change in tariff 
classification specified in Annex 4.1 of the 
Agreement; or 
(ii) the good otherwise satisfies any 
applicable regional value-content or other 
requirements specified in Annex 4.1 of the 
Agreement; and 
(B) satisfies all other applicable require-
ments of this section; or 
(3) the good is produced entirely in the terri-
tory of one or more of the CAFTA–DR countries, 
exclusively from materials described in paragraph 
(1) or (2).
(c) REGIONAL VALUE-CONTENT.— 
(1) IN GENERAL.—For purposes of subsection 
(b)(2), the regional value-content of a good referred 
to in Annex 4.1 of the Agreement, except for goods 
to which paragraph (4) applies, shall be calculated 
by the importer, exporter, or producer of the good, 
on the basis of the build-down method described in 
paragraph (2) or the build-up method described in 
paragraph (3). 
(2) BUILD-DOWN METHOD.— 
(A) IN GENERAL.—The regional value-con-
tent of a good may be calculated on the basis 
of the following build-down method: 
AV–VNM 
RVC = ———— × 100 
AV 
(B) DEFINITIONS.—In subparagraph (A): 
(i) RVC.—The term ‘‘RVC’’ means 
the regional value-content of the good, ex-
pressed as a percentage. 
(ii) AV.—The term ‘‘AV’’ means the 
adjusted value of the good. 
(iii) VNM.—The term ‘‘VNM’’ means 
the value of nonoriginating materials that 
are acquired and used by the producer in 
the production of the good, but does not