United States-Korea Free Trade Agreement Implementation Act
PL 112-41 (H.R.3080), enacted 10/21/2011

125 STAT. 428 
PUBLIC LAW 112–41—OCT. 21, 2011 
Public Law 112–41 
112th Congress 
An Act 
To implement the United States–Korea 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. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘United States– 
Korea Free Trade Agreement Implementation Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title. 
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. Implementing actions in anticipation of entry into force and initial regula-
tions. 
Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed 
actions. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Arbitration of 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; false certifications of origin; denial of 
preferential tariff treatment. 
Sec. 205. Reliquidation of entries. 
Sec. 206. Recordkeeping requirements. 
Sec. 207. Enforcement relating to trade in textile or apparel goods. 
Sec. 208. Regulations. 
TITLE III—RELIEF FROM IMPORTS 
Sec. 301. Definitions. 
Subtitle A—Relief From Imports Benefitting 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—Motor Vehicle Safeguard Measures 
Sec. 321. Motor vehicle safeguard measures. 
Subtitle C—Textile and Apparel Safeguard Measures 
Sec. 331. Commencement of action for relief. 
United States– 
Korea Free Trade 
Agreement 
Implementation 
Act. 
19 USC 3805 
note. 
Oct. 21, 2011 
[H.R. 3080] 
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125 STAT. 429 
PUBLIC LAW 112–41—OCT. 21, 2011 
Sec. 332. Determination and provision of relief. 
Sec. 333. Period of relief. 
Sec. 334. Articles exempt from relief. 
Sec. 335. Rate after termination of import relief. 
Sec. 336. Termination of relief authority. 
Sec. 337. Compensation authority. 
Sec. 338. Confidential business information. 
Subtitle D—Cases Under Title II of the Trade Act of 1974 
Sec. 341. Findings and action on Korean articles. 
TITLE IV—PROCUREMENT 
Sec. 401. Eligible products. 
TITLE V—OFFSETS 
Sec. 501. Increase in penalty on paid preparers who fail to comply with earned in-
come tax credit due diligence requirements. 
Sec. 502. Requirement for prisons located in the United States to provide informa-
tion for tax administration. 
Sec. 503. Rate for merchandise processing fees. 
Sec. 504. Extension of customs user fees. 
Sec. 505. Time for payment of corporate estimated taxes. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to approve and implement the free trade agreement 
between the United States and Korea entered into under the 
authority of section 2103(b) of the Bipartisan Trade Promotion 
Authority Act of 2002 (19 U.S.C. 3803(b)); 
(2) to secure the benefits of the agreement entered into 
pursuant to an exchange of letters between the United States 
and the Government of Korea on February 10, 2011; 
(3) to strengthen and develop economic relations between 
the United States and Korea for their mutual benefit; 
(4) to establish free trade between the United States and 
Korea through the reduction and elimination of barriers to 
trade in goods and services and to investment; and 
(5) to lay the foundation for further cooperation to expand 
and enhance the benefits of the Agreement. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) AGREEMENT.—The term ‘‘Agreement’’ means the United 
States–Korea Free Trade Agreement approved by Congress 
under section 101(a)(1). 
(2) COMMISSION.—The term ‘‘Commission’’ means the 
United States International Trade Commission. 
(3) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff 
Schedule of the United States. 
(4) KOREA.—The term ‘‘Korea’’ means the Republic of 
Korea. 
(5) TEXTILE
OR
APPAREL
GOOD.—The term ‘‘textile or 
apparel good’’ means a good listed in the Annex to the Agree-
ment on Textiles and Clothing referred to in section 101(d)(4) 
of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)). 
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125 STAT. 430 
PUBLIC LAW 112–41—OCT. 21, 2011 
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–Korea Free Trade Agreement entered 
into on June 30, 2007, with the Government of Korea, and 
submitted to Congress on October 3, 2011; and 
(2) the statement of administrative action proposed to 
implement the Agreement that was submitted to Congress on 
October 3, 2011. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.— 
At such time as the President determines that Korea has taken 
measures necessary to comply with those provisions of the Agree-
ment that are to take effect on the date on which the Agreement 
enters into force, the President is authorized to exchange notes 
with the Government of Korea providing for the entry into force, 
on or after January 1, 2012, of the Agreement with respect to 
the United States. 
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 con-
strued— 
(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 
President. 
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125 STAT. 431 
PUBLIC LAW 112–41—OCT. 21, 2011 
(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. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 
FORCE AND INITIAL REGULATIONS. 
(a) IMPLEMENTING ACTIONS.— 
(1) PROCLAMATION AUTHORITY.—After the date of the 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 on which the Agreement enters into force is appropriately 
implemented on such date, but no such proclamation or regula-
tion may have an effective date earlier than the date on which 
the Agreement enters into force. 
(2) 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 section 104 may not take effect before the 
15th day after the date on which the text of the proclamation 
is published in the Federal Register. 
(3) WAIVER OF 15-DAY RESTRICTION.—The 15-day restriction 
contained in paragraph (2) 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 on 
which 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 on which the Agreement enters into force. 
In the case of any implementing action that takes effect on a 
date after the date on which the Agreement enters into force, 
initial regulations to carry out that action shall, to the maximum 
extent feasible, be issued within 1 year after such effective date. 
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFEC-
TIVE DATE OF, PROCLAIMED ACTIONS. 
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 (19 U.S.C. 
2155); and 
(B) the Commission; 
(2) the President has submitted to the Committee on 
Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a report that sets forth— 
Reports. 
President. 
Deadlines. 
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125 STAT. 432 
PUBLIC LAW 112–41—OCT. 21, 2011 
(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 set forth in paragraphs (1) 
and (2) have been met, has expired; and 
(4) the President has consulted with the committees 
referred to in paragraph (2) regarding the proposed action 
during the period referred to in paragraph (3). 
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 22 of the 
Agreement. The office shall 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 2011 to 
the Department of Commerce up to $750,000 for the establishment 
and operations of the office established or designated under sub-
section (a) and for the payment of the United States share of 
the expenses of panels established under chapter 22 of the Agree-
ment. 
SEC. 106. ARBITRATION OF CLAIMS. 
The United States is authorized to resolve any claim against 
the United States covered by article 11.16.1(a)(i)(C) or article 
11.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 
Dispute Settlement procedures set forth in section B of chapter 
11 of the Agreement. 
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 
(a) EFFECTIVE DATES.—Except as provided in subsection (b), 
this Act and the amendments made by this Act take effect on 
the date on which the Agreement enters into force. 
(b) EXCEPTIONS.— 
(1) IN GENERAL.—Sections 1 through 3, section 207(g), this 
title, and title V take effect on the date of the enactment 
of this Act. 
(2) CERTAIN AMENDATORY PROVISIONS.—The amendments 
made by sections 203, 204, 206, and 401 of this Act take 
effect on the date of the enactment of this Act and apply 
with respect to Korea on the date on which the Agreement 
enters into force. 
(c) TERMINATION OF THE AGREEMENT.—On the date on which 
the Agreement terminates, this Act (other than this subsection 
and title V) and the amendments made by this Act (other than 
the amendments made by title V) shall cease to have effect. 
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 
Applicability. 
President. 
Time period. 
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125 STAT. 433 
PUBLIC LAW 112–41—OCT. 21, 2011 
(3) such additional duties, 
as the President determines to be necessary or appropriate to 
carry out or apply articles 2.3, 2.5, and 2.6, and Annex 2-B, Annex 
4-B, and Annex 22-A, of the Agreement. 
(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation 
and layover provisions of section 104, the President may proclaim— 
(1) such modifications or continuation of any duty, 
(2) such modifications as the United States may agree 
to with Korea regarding the staging of any duty treatment 
set forth in Annex 2-B 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 Korea provided for by the Agreement. 
(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 to Annex 2-B of the 
Agreement is a specific or compound rate of duty, the President 
may substitute for the base rate an ad valorem rate that the 
President determines to be equivalent to the base rate. 
(d) TARIFF TREATMENT OF MOTOR VEHICLES.—The President 
may proclaim the following tariff treatment with respect to the 
following motor vehicles of Korea: 
(1) CERTAIN PASSENGER CARS.—In the case of originating 
goods of Korea classifiable under subheading 8703.10.10, 
8703.10.50, 8703.21.00, 8703.22.00, 8703.23.00, 8703.24.00, 
8703.31.00, 8703.32.00, or 8703.33.00 of the HTS that are 
entered, or withdrawn from warehouse for consumption— 
(A) the rate of duty for such goods shall be 2.5 percent 
for year 1 of the Agreement through year 4 of the Agree-
ment; and 
(B) such goods shall be free of duty for each year 
thereafter. 
(2) ELECTRIC MOTOR VEHICLES.—In the case of originating 
goods of Korea classifiable under subheading 8703.90.00 of 
the HTS that are entered, or withdrawn from warehouse for 
consumption— 
(A) the rate of duty for such goods shall be— 
(i) 2.0 percent for year 1 of the Agreement; 
(ii) 1.5 percent for year 2 of the Agreement; 
(iii) 1.0 percent for year 3 of the Agreement; and 
(iv) 0.5 percent for year 4 of the Agreement; and 
(B) such goods shall be free of duty for each year 
thereafter. 
(3) CERTAIN TRUCKS.—In the case of originating goods of 
Korea classifiable under subheading 8704.21.00, 8704.22.50, 
8704.23.00, 8704.31.00, 8704.32.00, or 8704.90.00 of the HTS 
that are entered, or withdrawn from warehouse for consump-
tion— 
(A) the rate of duty for such goods shall be— 
(i) 25 percent for year 1 of the Agreement through 
year 7 of the Agreement; 
(ii) 16.6 percent for year 8 of the Agreement; and 
(iii) 8.3 percent for year 9 of the Agreement; and 
(B) such goods shall be free of duty for each year 
thereafter. 
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125 STAT. 434 
PUBLIC LAW 112–41—OCT. 21, 2011 
(4) DEFINITIONS.—In this subsection— 
(A) the term ‘‘year 1 of the Agreement’’ means the 
period beginning on the date, in a calendar year, on which 
the Agreement enters into force and ending on December 
31 of that calendar year; and 
(B) the terms ‘‘year 2 of the Agreement’’, ‘‘year 3 of 
the Agreement’’, ‘‘year 4 of the Agreement’’, ‘‘year 5 of 
the Agreement’’, ‘‘year 6 of the Agreement’’, ‘‘year 7 of 
the Agreement’’, ‘‘year 8 of the Agreement’’, and ‘‘year 
9 of the Agreement’’ mean the second, third, fourth, fifth, 
sixth, seventh, eighth, and ninth calendar years, respec-
tively, in which the Agreement is in force. 
SEC. 202. RULES OF ORIGIN. 
(a) APPLICATION AND INTERPRETATION.—In this section: 
(1) TARIFF CLASSIFICATION.—The basis for any tariff classi-
fication is the HTS. 
(2) REFERENCE TO HTS.—Whenever in this section there 
is a reference to a chapter, heading, or subheading, such ref-
erence shall be a reference to a chapter, heading, or subheading 
of the HTS. 
(3) COST OR VALUE.—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 
Korea or the United States). 
(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 produced entirely 
in the territory of Korea, the United States, or both; 
(2) the good— 
(A) is produced entirely in the territory of Korea, the 
United States, or both, and— 
(i) each of the nonoriginating materials used in 
the production of the good undergoes an applicable 
change in tariff classification specified in Annex 4- 
A or Annex 6-A of the Agreement; or 
(ii) the good otherwise satisfies any applicable 
regional value-content or other requirements specified 
in Annex 4-A or Annex 6-A of the Agreement; and 
(B) satisfies all other applicable requirements of this 
section; or 
(3) the good is produced entirely in the territory of Korea, 
the United States, or both, 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 6-A 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.— 
Records. 
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125 STAT. 435 
PUBLIC LAW 112–41—OCT. 21, 2011 
(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.—In subparagraph (A): 
(i) RVC.—The term ‘‘RVC’’ means the regional 
value-content of the good, expressed 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, other than indirect mate-
rials, that are acquired and used by the producer in 
the production of the good, but does not include the 
value of a material that is self-produced. 
(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.—In subparagraph (A): 
(i) RVC.—The term ‘‘RVC’’ means the regional 
value-content of the good, expressed 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, other than indirect 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 subsection (b)(2), 
the regional value-content of an automotive good referred 
to in Annex 6-A of the Agreement may be calculated by 
the importer, exporter, or producer of the good on the 
basis of the build-down method described in paragraph 
(2), the build-up method described in paragraph (3), or 
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 any of headings 8701 through 8708. 
(ii) RVC.—The term ‘‘RVC’’ means the regional 
value-content of the automotive 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, other than indirect mate-
rials, that are acquired and used by the producer in 
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125 STAT. 436 
PUBLIC LAW 112–41—OCT. 21, 2011 
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 deter-
mining 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 calculated under the net cost formula con-
tained in subparagraph (A), over the producer’s fiscal 
year— 
(I) with respect to all motor vehicles in any 
one of the categories described in clause (ii); or 
(II) with respect to all motor vehicles in any 
such category that are exported to the territory 
of Korea or the United States. 
(ii) CATEGORIES.—A category is described in this 
clause if it— 
(I) is the same model line of motor vehicles, 
is in the same class of motor vehicles, and is 
produced in the same plant in the territory of 
Korea or the United States, 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 Korea or the United States, 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 territory of Korea or the United 
States as the good described in clause (i) for which 
regional value-content is being calculated. 
(D) OTHER AUTOMOTIVE GOODS.—For purposes of deter-
mining the regional value-content under subparagraph (A) 
for automotive materials 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 net 
cost formula contained in subparagraph (A) over— 
(I) the fiscal year of the motor vehicle producer 
to whom the automotive goods are sold, 
(II) any quarter or month, or 
(III) the fiscal year of the producer of such 
goods, 
if the goods were produced during the fiscal 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 such goods that are exported to the terri-
tory of Korea or the United States. 
(E) CALCULATING NET COST.—The importer, exporter, 
or producer of an automotive good shall, consistent with 
the provisions regarding allocation of costs provided for 
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125 STAT. 437 
PUBLIC LAW 112–41—OCT. 21, 2011 
in generally accepted accounting principles, determine the 
net cost of the 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, subtracting any sales promotion, marketing, and 
after-sales service costs, royalties, shipping and 
packing costs, and nonallowable interest costs that are 
included in the total cost of all such goods, and then 
reasonably 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 subtracting any sales promotion, marketing, and 
after-sales service costs, royalties, shipping and 
packing costs, and nonallowable 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 these costs does not 
include 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 calculating 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 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, 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 (19 U.S.C. 
3511(d)(8)), as set forth in regulations promulgated by the 
Secretary of the Treasury providing for the application 
of such Articles in the absence of an importation by the 
producer; or 
(C) in the case of a material that is self-produced, 
the sum of— 
(i) all expenses incurred in the production 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 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: 
(i) The costs of freight, insurance, packing, and 
all other costs incurred in transporting the material 
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125 STAT. 438 
PUBLIC LAW 112–41—OCT. 21, 2011 
within or between the territory of Korea, the United 
States, or both, to the location of the producer. 
(ii) Duties, taxes, and customs brokerage fees on 
the material paid in the territory of Korea, the United 
States, or both, other than duties or 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 byproducts. 
(B) 
NONORIGINATING
MATERIAL.—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 
within or between the territory of Korea, the United 
States, or both, to the location of the producer. 
(ii) Duties, taxes, and customs brokerage fees on 
the material paid in the territory of Korea, the United 
States, or both, other than duties or 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 byproducts. 
(iv) The cost of originating materials used in the 
production of the nonoriginating material in the terri-
tory of Korea, the United States, or both. 
(e) ACCUMULATION.— 
(1) ORIGINATING MATERIALS USED IN PRODUCTION OF GOODS 
OF THE OTHER COUNTRY.—Originating materials from the terri-
tory of Korea or the United States that are used in the produc-
tion of a good in the territory of the other country shall be 
considered to originate in the territory of such other country. 
(2) MULTIPLE PRODUCERS.—A good that is produced in the 
territory of Korea, the United States, or both, by 1 or more 
producers, is an originating good if the good satisfies the 
requirements of subsection (b) and all other applicable require-
ments of this section. 
(f) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.— 
(1) IN
GENERAL.—Except as provided in paragraphs (2) 
and (3), a good that does not undergo a change in tariff classi-
fication pursuant to Annex 6-A of the Agreement is an origi-
nating good if— 
(A) the value of all nonoriginating materials used in 
the production of the good that do not undergo the 
applicable change in tariff classification (set forth in Annex 
6-A of the Agreement) does not exceed 10 percent of the 
adjusted value of the good; 
(B) the good meets all other applicable requirements 
of this section; and 
(C) the value of such nonoriginating materials is 
included in the value of nonoriginating materials for any 
applicable regional value-content requirement for the good. 
(2) EXCEPTIONS.—Paragraph (1) does not apply to the fol-
lowing: 
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125 STAT. 439 
PUBLIC LAW 112–41—OCT. 21, 2011 
(A) A nonoriginating material provided for in chapter 
3 that is used in the production of a good provided for 
in chapter 3. 
(B) A nonoriginating material provided for in chapter 
4, or a nonoriginating dairy preparation containing over 
10 percent by weight of milk solids provided for in sub-
heading 1901.90 or 2106.90, that is used in the production 
of a good provided for in chapter 4. 
(C) A nonoriginating material provided for in chapter 
4, or a nonoriginating dairy preparation containing over 
10 percent by weight of milk solids provided for in sub-
heading 1901.90, that is used in the production of any 
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, pro-
vided for in subheading 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 provided for in sub-
heading 2202.90. 
(vi) Animal feeds containing over 10 percent by 
weight of milk solids provided for in subheading 
2309.90. 
(D) A nonoriginating material provided for in chapter 
7 that is used in the production of a good provided for 
in subheading 0703.10, 0703.20, 0709.59, 0709.60, 0711.90, 
0712.20, 0714.20, or any of subheadings 0710.21 through 
0710.80 or 0712.39 through 0713.10. 
(E) A nonoriginating material provided for in heading 
1006, or a nonoriginating rice product provided for in 
chapter 11 that is used in the production of a good provided 
for in heading 1006, 1102, 1103, 1104, or subheading 
1901.20 or 1901.90. 
(F) 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 subheadings 2009.11 through 2009.39, or in fruit or 
vegetable juice of any single fruit or vegetable, fortified 
with minerals or vitamins, concentrated or unconcentrated, 
provided for in subheading 2106.90 or 2202.90. 
(G) Nonoriginating peaches, pears, or apricots provided 
for in chapter 8 or 20 that are used in the production 
of a good provided for in heading 2008. 
(H) A nonoriginating material provided for in chapter 
15 that is used in the production of a good provided for 
in any of headings 1501 through 1508, or heading 1512, 
1514, or 1515. 
(I) 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. 
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125 STAT. 440 
PUBLIC LAW 112–41—OCT. 21, 2011 
(J) A nonoriginating material provided for in chapter 
17 that is used in the production of a good provided for 
in subheading 1806.10. 
(K) Except as provided in subparagraphs (A) through 
(J) and Annex 6-A of the Agreement, a nonoriginating 
material used in the production of a good provided for 
in any of chapters 1 through 24, unless the nonoriginating 
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 tariff 
classification of the good do not undergo an applicable 
change in tariff classification, set forth in Annex 4-A 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.—A textile 
or apparel good containing elastomeric yarns in the compo-
nent 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 and finished in the 
territory of Korea, the United States, or both. 
(C) YARN, FABRIC, OR FIBER.—For purposes of this para-
graph, in the case of a good that is a yarn, fabric, or 
fiber, the term ‘‘component of the good that determines 
the tariff classification of the good’’ means all of the fibers 
in the good. 
(g) FUNGIBLE GOODS AND MATERIALS.— 
(1) IN GENERAL.— 
(A) CLAIM FOR PREFERENTIAL TARIFF TREATMENT.—A 
person claiming that a fungible good or fungible material 
is an originating good may base the claim either on the 
physical segregation of the fungible good or fungible mate-
rial or by using an inventory management method with 
respect to the fungible good or fungible material. 
(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 Korea 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 
a particular fungible good or fungible material shall continue 
to use that method for that fungible good or fungible material 
throughout the fiscal year of such person. 
(h) ACCESSORIES, SPARE PARTS, OR TOOLS.— 
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125 STAT. 441 
PUBLIC LAW 112–41—OCT. 21, 2011 
(1) IN GENERAL.—Subject to paragraphs (2) and (3), acces-
sories, 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 non-
originating materials used in the production of the good 
undergo the applicable change in tariff classification set 
forth in Annex 6-A 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; and 
(B) the quantities and value of the accessories, 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 acces-
sories, spare parts, or tools 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) 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 forth in Annex 4-A or Annex 6-A 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. 
(j) PACKING MATERIALS
AND CONTAINERS
FOR SHIPMENT.— 
Packing materials and containers for shipment shall be disregarded 
in determining whether a good is an originating good. 
(k) INDIRECT MATERIALS.—An indirect material shall be dis-
regarded in determining whether a good is an originating good. 
(l) TRANSIT AND TRANSHIPMENT.—A good that has undergone 
production necessary to qualify as an originating good under sub-
section (b) shall not be considered to be an originating good if, 
subsequent to that production, the good— 
(1) undergoes further production or any other operation 
outside the territory of Korea or the United States, other than 
unloading, reloading, or any other operation necessary to pre-
serve the good in good condition or to transport the good to 
the territory of Korea or the United States; or 
(2) does not remain under the control of customs authorities 
in the territory of a country other than Korea or the United 
States. 
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN SETS.—Notwith-
standing the rules set forth in Annex 4-A and Annex 6-A of the 
Agreement, goods classifiable as goods put up in sets for retail 
sale as provided for in General Rule of Interpretation 3 of the 
HTS shall not be considered to be originating goods unless— 
(1) each of the goods in the set is an originating good; 
or 
(2) the total value of the nonoriginating goods in the set 
does not exceed— 
Applicability. 
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125 STAT. 442 
PUBLIC LAW 112–41—OCT. 21, 2011 
(A) in the case of textile or apparel goods, 10 percent 
of the adjusted value of the set; or 
(B) in the case of goods, other than textile or apparel 
goods, 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 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 (19 U.S.C. 
3511(d)(8)), adjusted, if necessary, 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) CLASS OF MOTOR VEHICLES.—The term ‘‘class of motor 
vehicles’’ means any one of the following categories of motor 
vehicles: 
(A) Motor vehicles provided for in subheading 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 subheading 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. 
(3) FUNGIBLE
GOOD
OR
FUNGIBLE
MATERIAL.—The term 
‘‘fungible good’’ or ‘‘fungible material’’ means a good or material, 
as the case may be, that is interchangeable with another good 
or material for commercial purposes and the properties of which 
are essentially identical to such other good or material. 
(4) GENERALLY
ACCEPTED
ACCOUNTING
PRINCIPLES.—The 
term ‘‘generally accepted accounting principles’’— 
(A) means the recognized consensus or substantial 
authoritative support given in the territory of Korea or 
the United States, as the case may be, with respect to 
the recording of revenues, expenses, costs, assets, and 
liabilities, the disclosure of information, and the prepara-
tion of financial statements; and 
(B) may encompass broad guidelines for general 
application as well as detailed standards, practices, and 
procedures. 
(5) GOOD
WHOLLY
OBTAINED
OR
PRODUCED
ENTIRELY
IN 
THE
TERRITORY
OF
KOREA, THE
UNITED
STATES, OR
BOTH.— 
The term ‘‘good wholly obtained or produced entirely in the 
territory of Korea, the United States, or both’’ means any 
of the following: 
(A) Plants and plant products grown, and harvested 
or gathered, in the territory of Korea, the United States, 
or both. 
(B) Live animals born and raised in the territory of 
Korea, the United States, or both. 
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125 STAT. 443 
PUBLIC LAW 112–41—OCT. 21, 2011 
(C) Goods obtained in the territory of Korea, the United 
States, or both from live animals. 
(D) Goods obtained from hunting, trapping, fishing, 
or aquaculture conducted in the territory of Korea, the 
United States, or both. 
(E) Minerals and other natural resources not included 
in subparagraphs (A) through (D) that are extracted or 
taken from the territory of Korea, the United States, or 
both. 
(F) Fish, shellfish, and other marine life taken from 
the sea, seabed, or subsoil outside the territory of Korea 
or the United States by— 
(i) a vessel that is registered or recorded with 
Korea and flying the flag of Korea; or 
(ii) a vessel that is documented under the laws 
of the United States. 
(G) Goods produced on board a factory ship from goods 
referred to in subparagraph (F), if such factory ship— 
(i) is registered or recorded with Korea and flies 
the flag of Korea; or 
(ii) is a vessel that is documented under the laws 
of the United States. 
(H)(i) Goods taken by Korea or a person of Korea 
from the seabed or subsoil outside the territory of Korea, 
the United States, or both, if Korea has rights to exploit 
such seabed or subsoil; or 
(ii) Goods taken by the United States or a person 
of the United States from the seabed or subsoil outside 
the territory of the United States, Korea, or both, if the 
United States has rights to exploit such seabed or subsoil. 
(I) Goods taken from outer space, if the goods are 
obtained by Korea or the United States or a person of 
Korea or the United States and not processed in the terri-
tory of a country other than Korea or the United States. 
(J) Waste and scrap derived from— 
(i) manufacturing or processing operations in the 
territory of Korea, the United States, or both; or 
(ii) used goods collected in the territory of Korea, 
the United States, or both, if such goods are fit only 
for the recovery of raw materials. 
(K) Recovered goods derived in the territory of Korea, 
the United States, or both, from used goods, and used 
in the territory of Korea, the United States, or both, in 
the production of remanufactured goods. 
(L) Goods, at any stage of production, produced in 
the territory of Korea, the United States, or both, exclu-
sively from— 
(i) goods referred to in any of subparagraphs (A) 
through (J); or 
(ii) the derivatives of goods referred to in clause 
(i). 
(6) IDENTICAL GOODS.—The term ‘‘identical goods’’ means 
goods that are the same in all respects relevant to the rule 
of origin that qualifies the goods as originating goods. 
(7) INDIRECT
MATERIAL.—The term ‘‘indirect material’’ 
means a good used in the production, testing, or inspection 
of another good but not physically incorporated into that other 
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125 STAT. 444 
PUBLIC LAW 112–41—OCT. 21, 2011 
good, or a good used in the maintenance of buildings or the 
operation of equipment associated with the production of 
another 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 good that is not incorporated into the 
other good but the use of which in the production of the 
other good can reasonably be demonstrated to be a part 
of that production. 
(8) MATERIAL.—The term ‘‘material’’ means a good that 
is used in the production of another good, including a part 
or an ingredient. 
(9) 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. 
(10) MODEL LINE OF MOTOR VEHICLES.—The term ‘‘model 
line of motor vehicles’’ means a group of motor vehicles having 
the same platform or model name. 
(11) NET COST.—The term ‘‘net cost’’ means total cost minus 
sales promotion, marketing, and after-sales service costs, royal-
ties, shipping and packing costs, and non-allowable interest 
costs that are included in the total cost. 
(12) NONALLOWABLE INTEREST COSTS.—The term ‘‘nonallow-
able 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 country in which 
the producer is located. 
(13) NONORIGINATING
GOOD
OR
NONORIGINATING
MATE-
RIAL.—The term ‘‘nonoriginating good’’ or ‘‘nonoriginating mate-
rial’’ means a good or material, as the case may be, that 
does not qualify as originating under this section. 
(14) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.— 
The term ‘‘packing materials and containers for shipment’’ 
means goods used to protect another good during its transpor-
tation and does not include the packaging materials and con-
tainers in which the other good is packaged for retail sale. 
(15) PREFERENTIAL TARIFF TREATMENT.—The term ‘‘pref-
erential tariff treatment’’ means the customs duty rate, and 
the treatment under article 2.10.4 of the Agreement, that are 
applicable to an originating good pursuant to the Agreement. 
(16) PRODUCER.—The term ‘‘producer’’ means a person who 
engages in the production of a good in the territory of Korea 
or the United States. 
(17) PRODUCTION.—The term ‘‘production’’ means growing, 
mining, 
harvesting, 
fishing, 
breeding, 
raising, 
trapping, 
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125 STAT. 445 
PUBLIC LAW 112–41—OCT. 21, 2011 
hunting, manufacturing, processing, assembling, or disassem-
bling a good. 
(18) REASONABLY ALLOCATE.—The term ‘‘reasonably allo-
cate’’ means to apportion in a manner that would be appropriate 
under generally accepted accounting principles. 
(19) RECOVERED
GOODS.—The term ‘‘recovered goods’’ 
means materials in the form of individual parts that are the 
result of— 
(A) the disassembly of used goods into individual parts; 
and 
(B) the cleaning, inspecting, testing, or other processing 
that is necessary for improvement to sound working condi-
tion of such individual parts. 
(20) REMANUFACTURED GOOD.—The term ‘‘remanufactured 
good’’ means a good that is classified under chapter 84, 85, 
87, or 90 or heading 9402, and that— 
(A) is entirely or partially comprised of recovered goods; 
and 
(B) has a similar life expectancy and enjoys a factory 
warranty similar to such a good that is new. 
(21) TOTAL COST.— 
(A) IN GENERAL.—The term ‘‘total cost’’— 
(i) means all product costs, period costs, and other 
costs for a good incurred in the territory of Korea, 
the United States, or both; and 
(ii) does not include profits that are earned by 
the producer, regardless of whether they are retained 
by the producer or paid out to other persons as divi-
dends, or taxes paid on those profits, including capital 
gains taxes. 
(B) OTHER DEFINITIONS.—In this paragraph: 
(i) PRODUCT
COSTS.—The term ‘‘product costs’’ 
means costs that are associated with the production 
of a good and include the value of materials, direct 
labor costs, and direct overhead. 
(ii) PERIOD COSTS.—The term ‘‘period costs’’ means 
costs, other than product costs, that are expensed in 
the period in which they are incurred, such as selling 
expenses and general and administrative expenses. 
(iii) OTHER COSTS.—The term ‘‘other costs’’ means 
all costs recorded on the books of the producer that 
are not product costs or period costs, such as interest. 
(22) USED.—The term ‘‘used’’ means utilized 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 forth in Annex 4-A and Annex 
6-A of the Agreement; and 
(B) any additional subordinate category that is nec-
essary to carry out this title consistent with the Agreement. 
(2) MODIFICATIONS.— 
(A) IN GENERAL.—Subject to the consultation and lay-
over provisions of section 104, the President may proclaim 
modifications to the provisions proclaimed under the 
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125 STAT. 446 
PUBLIC LAW 112–41—OCT. 21, 2011 
authority of paragraph (1)(A), other than provisions of chap-
ters 50 through 63 (as included in Annex 4-A of the Agree-
ment). 
(B) 
ADDITIONAL
PROCLAMATIONS.—Notwithstanding 
subparagraph (A), and subject to the consultation and lay-
over provisions of section 104, the President may pro-
claim— 
(i) such modifications to the provisions proclaimed 
under the authority of paragraph (1)(A) as are nec-
essary to implement an agreement with Korea pursu-
ant to article 4.2.5 of the Agreement; and 
(ii) before the end of the 1-year period beginning 
on the date on which the Agreement enters into force, 
modifications to correct any typographical, clerical, or 
other nonsubstantive technical error regarding the 
provisions of chapters 50 through 63 (as included in 
Annex 4-A of the Agreement). 
(3) FIBERS, YARNS, OR FABRICS NOT AVAILABLE IN COMMER-
CIAL QUANTITIES IN THE UNITED STATES.— 
(A) IN GENERAL.—Notwithstanding paragraph (2)(A), 
the list of fibers, yarns, and fabrics set forth in the list 
of the United States in Appendix 4-B-1 of the Agreement 
may be modified as provided for in this paragraph. 
(B) DEFINITIONS.—In this paragraph: 
(i) INTERESTED
ENTITY.—The term ‘‘interested 
entity’’ means the Government of Korea, a potential 
or actual purchaser of a textile or apparel good, or 
a potential or actual supplier of a textile or apparel 
good. 
(ii) DAY; DAYS.—All references to ‘‘day’’ and ‘‘days’’ 
exclude Saturdays, Sundays, and legal holidays 
observed by the Government of the United States. 
(C) REQUESTS TO ADD FIBERS, YARNS, OR FABRICS.— 
(i) IN GENERAL.—An interested entity may request 
the President to determine that a fiber, yarn, or fabric 
is not available in commercial quantities in a timely 
manner in the United States and to add that fiber, 
yarn, or fabric to the list of the United States in 
Appendix 4-B-1 of the Agreement. 
(ii) DETERMINATION.—After receiving a request 
under clause (i), the President may determine 
whether— 
(I) the fiber, yarn, or fabric is available in 
commercial quantities in a timely manner in the 
United States; or 
(II) any interested entity objects to the 
request. 
(iii) PROCLAMATION
AUTHORITY.—The President 
may, within the time periods specified in clause (iv), 
proclaim that the fiber, yarn, or fabric that is the 
subject of the request is added to the list of the United 
States in Appendix 4-B-1 of the Agreement, if the 
President has determined under clause (ii) that— 
(I) the fiber, yarn, or fabric is not available 
in commercial quantities in a timely manner in 
the United States; or 
Time period. 
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125 STAT. 447 
PUBLIC LAW 112–41—OCT. 21, 2011 
(II) no interested entity has objected to the 
request. 
(iv) TIME PERIODS.—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 a request is submitted under clause (i); or 
(II) not later than 60 days after the request 
is submitted, if the President determines, within 
30 days after the date on which the request is 
submitted, that the President does not have suffi-
cient information to make a determination under 
clause (ii). 
(v) EFFECTIVE
DATE.—Notwithstanding section 
103(a)(2), a proclamation made under clause (iii) shall 
take effect on the date on which the text of the 
proclamation is published in the Federal Register. 
(D) DEEMED
DENIAL
OF
REQUEST.—If, after an 
interested entity submits a request under subparagraph 
(C)(i), the President does not, within 30 days of the expira-
tion of the applicable time period specified in subparagraph 
(C)(iv), make a determination under subparagraph (C)(ii) 
regarding the request, the request shall be considered to 
be denied. 
(E) REQUESTS TO REMOVE FIBERS, YARNS, OR FABRICS.— 
(i) IN GENERAL.—An interested entity may request 
the President to remove from the list of the United 
States in Appendix 4-B-1 of the Agreement, any fiber, 
yarn, or fabric that has been added to that list pursu-
ant to subparagraph (C)(iii). 
(ii) PROCLAMATION AUTHORITY.—Not later than 30 
days after the date on which a request under clause 
(i) is submitted, the President may proclaim that the 
fiber, yarn, or fabric that is the subject of the request 
is removed from the list of the United States in 
Appendix 4-B-1 of the Agreement if the President 
determines that the fiber, yarn, or fabric is available 
in commercial quantities in a timely manner in the 
United States. 
(iii) EFFECTIVE
DATE.—A proclamation issued 
under clause (ii) may not take effect 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 proce-
dures— 
(i) governing the submission of a request under 
subparagraphs (C) and (E); and 
(ii) providing an opportunity for interested entities 
to submit comments and supporting evidence before 
the President makes a determination under subpara-
graph (C)(ii) or (E)(ii). 
SEC. 203. 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 adding after 
paragraph (18) the following: 
Deadline. 
Deadline. 
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125 STAT. 448 
PUBLIC LAW 112–41—OCT. 21, 2011 
‘‘(19) 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–Korea 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. 204. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFI-
CATIONS 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 (11) as paragraph (12); 
and 
(B) by inserting after paragraph (10) the following 
new paragraph: 
‘‘(11) PRIOR
DISCLOSURE
REGARDING
CLAIMS
UNDER
THE 
UNITED STATES–KOREA 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–Korea Free Trade Agree-
ment Implementation Act if the importer, in accordance with 
regulations issued by the Secretary of the Treasury, promptly 
and voluntarily makes a corrected declaration and pays any 
duties owing with respect to that good.’’; and 
(2) by adding at the end the following new subsection: 
‘‘(j) FALSE CERTIFICATIONS
OF ORIGIN UNDER
THE UNITED 
STATES–KOREA 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 KFTA certification of origin (as defined 
in section 508 of this Act) that a good exported from the 
United States qualifies as an originating good under the rules 
of origin provided for in section 202 of the United States– 
Korea 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) PROMPT AND VOLUNTARY DISCLOSURE OF INCORRECT 
INFORMATION.—No penalty shall be imposed under this sub-
section if, promptly after an exporter or producer that issued 
a KFTA certification of origin has reason to believe that such 
certification 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 certification 
was issued. 
‘‘(3) EXCEPTION.—A person shall not be considered to have 
violated paragraph (1) if— 
‘‘(A) the information was correct at the time it was 
provided in a KFTA certification of origin but was later 
rendered incorrect due to a change in circumstances; and 
‘‘(B) the person promptly and voluntarily provides writ-
ten notice of the change in circumstances to all persons 
to whom the person provided the certification.’’. 
(b) DENIAL OF PREFERENTIAL TARIFF TREATMENT.—Section 514 
of the Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding 
at the end the following new subsection: 
Notice. 
Applicability. 
Regulations. 
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125 STAT. 449 
PUBLIC LAW 112–41—OCT. 21, 2011 
‘‘(j) DENIAL OF PREFERENTIAL TARIFF TREATMENT UNDER THE 
UNITED STATES–KOREA FREE TRADE AGREEMENT.—If U.S. Customs 
and Border Protection or U.S. Immigration and Customs Enforce-
ment of the Department of Homeland Security finds indications 
of a pattern of conduct by an importer, exporter, or producer of 
false or unsupported representations that goods qualify under the 
rules of origin provided for in section 202 of the United States– 
Korea Free Trade Agreement Implementation Act, U.S. Customs 
and Border Protection, in accordance with regulations issued by 
the Secretary of the Treasury, may suspend preferential tariff treat-
ment under the United States–Korea Free Trade Agreement 
Implementation Act to entries of identical goods covered by subse-
quent representations by that importer, exporter, or producer until 
U.S. Customs and Border Protection determines that representa-
tions of that person are in conformity with such section 202.’’. 
SEC. 205. RELIQUIDATION OF ENTRIES. 
Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 1520(d)) 
is amended in the matter preceding paragraph (1)— 
(1) by striking ‘‘or’’; and 
(2) by striking ‘‘for which’’ and inserting ‘‘, or section 202 
of the United States–Korea Free Trade Agreement Implementa-
tion Act for which’’. 
SEC. 206. RECORDKEEPING REQUIREMENTS. 
Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is 
amended— 
(1) by redesignating subsection (i) as subsection (j); 
(2) by inserting after subsection (h) the following new sub-
section: 
‘‘(i) CERTIFICATIONS OF ORIGIN FOR GOODS EXPORTED UNDER 
THE UNITED STATES–KOREA FREE TRADE AGREEMENT.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) RECORDS AND SUPPORTING DOCUMENTS.—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, including— 
‘‘(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) KFTA CERTIFICATION OF ORIGIN.—The term ‘KFTA 
certification of origin’ means the certification established 
under article 6.15 of the United States–Korea Free Trade 
Agreement that a good qualifies as an originating good 
under such Agreement. 
‘‘(2) EXPORTS TO KOREA.—Any person who completes and 
issues a KFTA certification 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 inspection all records and sup-
porting documents related to the origin of the good (including 
the certification or copies thereof). 
‘‘(3) RETENTION PERIOD.—The person who issues a KFTA 
certification of origin shall keep the records and supporting 
Regulations. 
Records. 
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125 STAT. 450 
PUBLIC LAW 112–41—OCT. 21, 2011 
documents relating to that certification of origin for a period 
of at least 5 years after the date on which the certification 
is issued.’’; and 
(3) in subsection (j), as so redesignated, by striking ‘‘(g), 
or (h)’’ and inserting ‘‘(g), (h), or (i)’’. 
SEC. 207. 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 Korea to conduct a verification pursuant 
to article 4.3 of the Agreement for purposes of making a deter-
mination under paragraph (2), the President may direct the 
Secretary to take appropriate action described in subsection 
(b) while the verification is being conducted. 
(2) DETERMINATION.—A determination under this para-
graph is a determination of the Secretary that— 
(A) an exporter or producer in Korea is complying 
with applicable customs laws, regulations, procedures, 
requirements, and practices affecting trade in textile or 
apparel goods; or 
(B) a claim that a textile or apparel good exported 
or produced by such exporter or producer— 
(i) qualifies as an originating good under section 
202, or 
(ii) is a good of Korea, 
is accurate. 
(b) APPROPRIATE ACTION DESCRIBED.—Appropriate action under 
subsection (a)(1) includes— 
(1) suspension of liquidation of the entry of any textile 
or apparel good exported or produced by the person that is 
the subject of a verification under subsection (a)(1) regarding 
compliance described in subsection (a)(2)(A), in a case in which 
the request for verification was based on a reasonable suspicion 
of unlawful activity related to such goods; and 
(2) suspension of liquidation of the entry of a textile or 
apparel good for which a claim has been made that is the 
subject of a verification under subsection (a)(1) regarding a 
claim described in subsection (a)(2)(B). 
(c) ACTION WHEN INFORMATION IS INSUFFICIENT.—If the Sec-
retary of the Treasury determines that the information obtained 
within 12 months after making a request for a verification under 
subsection (a)(1) is insufficient to make a determination under 
subsection (a)(2), the President may direct the Secretary to take 
appropriate action described in subsection (d) until such time as 
the Secretary receives information sufficient to make the determina-
tion under subsection (a)(2) or until such earlier date as the Presi-
dent may direct. 
(d) APPROPRIATE ACTION DESCRIBED.—Appropriate action under 
subsection (c) includes— 
(1) denial of preferential tariff treatment under the Agree-
ment with respect to— 
(A) any textile or apparel good exported or produced 
by the person that is the subject of a verification under 
subsection (a)(1) regarding compliance described in sub-
section (a)(2)(A); or 
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125 STAT. 451 
PUBLIC LAW 112–41—OCT. 21, 2011 
(B) the textile or apparel good for which a claim has 
been made that is the subject of a verification under sub-
section (a)(1) regarding a claim described in subsection 
(a)(2)(B); and 
(2) denial of entry into the United States of— 
(A) any textile or apparel good exported or produced 
by the person that is the subject of a verification under 
subsection (a)(1) regarding compliance described in sub-
section (a)(2)(A); or 
(B) a textile or apparel good for which a claim has 
been made that is the subject of a verification under sub-
section (a)(1) regarding a claim described in subsection 
(a)(2)(B). 
(e) PUBLICATION
OF NAME
OF PERSON.—In accordance with 
article 4.3.11 of the Agreement, the Secretary of the Treasury 
may publish the name of any person that the Secretary has deter-
mined— 
(1) is engaged in circumvention of applicable laws, regula-
tions, or procedures affecting trade in textile or apparel goods; 
or 
(2) has failed to demonstrate that it produces, or is capable 
of producing, textile or apparel goods. 
(f) CERTIFICATE OF ELIGIBILITY.—The Commissioner responsible 
for U.S. Customs and Border Protection of the Department of Home-
land Security may require an importer to submit at the time the 
importer files a claim for preferential tariff treatment under Annex 
4-B of the Agreement a certificate of eligibility, properly completed 
and signed by an authorized official of the Government of Korea. 
(g) VERIFICATIONS IN THE UNITED STATES.—If the government 
of a country that is a party to a free trade agreement with the 
United States makes a request for a verification pursuant to that 
agreement, the Secretary of the Treasury may request a verification 
of the production of any textile or apparel good in order to assist 
that government in determining whether— 
(1) a claim of origin under the agreement for a textile 
or apparel good is accurate; or 
(2) an exporter, producer, or other enterprise located in 
the United States involved in the movement of textile or apparel 
goods from the United States to the territory of the requesting 
government is complying with applicable customs laws, regula-
tions, and procedures regarding trade in textile or apparel 
goods. 
SEC. 208. REGULATIONS. 
The Secretary of the Treasury shall prescribe such regulations 
as may be necessary to carry out— 
(1) subsections (a) through (n) of section 202; 
(2) the amendment made by section 203; and 
(3) any proclamation issued under section 202(o). 
TITLE III—RELIEF FROM IMPORTS 
SEC. 301. DEFINITIONS. 
In this title: 
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125 STAT. 452 
PUBLIC LAW 112–41—OCT. 21, 2011 
(1) KOREAN ARTICLE.—The term ‘‘Korean article’’ means 
an article that qualifies as an originating good under section 
202(b). 
(2) KOREAN MOTOR VEHICLE ARTICLE.—The term ‘‘Korean 
motor vehicle article’’ means a good provided for in heading 
8703 or 8704 of the HTS that qualifies as an originating good 
under section 202(b). 
(3) KOREAN
TEXTILE
OR
APPAREL
ARTICLE.—The term 
‘‘Korean textile or apparel article’’ means a textile or apparel 
good (as defined in section 3(5)) that is a Korean article. 
Subtitle A—Relief From Imports 
Benefitting From the Agreement 
SEC. 311. COMMENCING OF ACTION FOR RELIEF. 
(a) FILING OF PETITION.— 
(1) IN GENERAL.—A petition requesting action under this 
subtitle for the purpose of adjusting to the obligations of the 
United States under the Agreement may be filed with the 
Commission by an entity, including a trade association, firm, 
certified or recognized union, or group of workers, that is rep-
resentative of an industry. The Commission shall transmit 
a copy of any petition filed under this subsection to the United 
States Trade Representative. 
(2) PROVISIONAL RELIEF.—An entity filing a petition under 
this subsection may request that provisional relief be provided 
as if the petition had been filed under section 202(a) of the 
Trade Act of 1974 (19 U.S.C. 2252(a)). 
(3) CRITICAL CIRCUMSTANCES.—Any allegation that critical 
circumstances exist shall be included in the petition. 
(b) INVESTIGATION
AND DETERMINATION.—Upon the filing of 
a petition under subsection (a), the Commission, unless subsection 
(d) applies, shall promptly initiate an investigation to determine 
whether, as a result of the reduction or elimination of a duty 
provided for under the Agreement, a Korean article is being 
imported into the United States in such increased quantities, in 
absolute terms or relative to domestic production, and under such 
conditions that imports of the Korean article constitute a substantial 
cause of serious injury or threat thereof to the domestic industry 
producing an article that is like, or directly competitive with, the 
imported article. 
(c) APPLICABLE PROVISIONS.—The following provisions of section 
202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect 
to any investigation initiated under subsection (b): 
(1) Paragraphs (1)(B) and (3) of subsection (b). 
(2) Subsection (c). 
(3) Subsection (d). 
(4) Subsection (i). 
(d) ARTICLES EXEMPT FROM INVESTIGATION.—No investigation 
may be initiated under this section with respect to any Korean 
article if, after the date on which the Agreement enters into force, 
import relief has been provided with respect to that Korean article 
under this subtitle. 
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125 STAT. 453 
PUBLIC LAW 112–41—OCT. 21, 2011 
SEC. 312. COMMISSION ACTION ON PETITION. 
(a) DETERMINATION.—Not later than 120 days (180 days if 
critical circumstances have been alleged) after the date on which 
an investigation is initiated under section 311(b) with respect to 
a petition, the Commission shall make the determination required 
under that section. 
(b) APPLICABLE PROVISIONS.—For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under 
this section as if such determinations and findings were made 
under section 202 of the Trade Act of 1974 (19 U.S.C. 2252). 
(c) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINA-
TION AFFIRMATIVE.— 
(1) IN
GENERAL.—If the determination made by the 
Commission under subsection (a) with respect to imports of 
an article is affirmative, or if the President may consider a 
determination of the Commission to be an affirmative deter-
mination as provided for under paragraph (1) of section 330(d) 
of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the Commission 
shall find, and recommend to the President in the report 
required under subsection (d), the amount of import relief that 
is necessary to remedy or prevent the injury found by the 
Commission in the determination and to facilitate the efforts 
of the domestic industry to make a positive adjustment to 
import competition. 
(2) LIMITATION ON RELIEF.—The import relief recommended 
by the Commission under this subsection shall be limited to 
the relief described in section 313(c). 
(3) VOTING; SEPARATE VIEWS.—Only those members of the 
Commission who voted in the affirmative under subsection 
(a) are eligible to vote on the proposed action to remedy or 
prevent the injury found by the Commission. Members of the 
Commission who did not vote in the affirmative may submit, 
in the report required under subsection (d), separate views 
regarding what action, if any, should be taken to remedy or 
prevent the injury. 
(d) REPORT TO PRESIDENT.—Not later than the date that is 
30 days after the date on which a determination is made under 
subsection (a) with respect to an investigation, the Commission 
shall submit to the President a report that includes— 
(1) the determination made under subsection (a) and an 
explanation of the basis for the determination; 
(2) if the determination under subsection (a) is affirmative, 
any findings and recommendations for import relief made under 
subsection (c) and an explanation of the basis for each rec-
ommendation; and 
(3) any dissenting or separate views by members of the 
Commission regarding the determination referred to in para-
graph (1) and any finding or recommendation referred to in 
paragraph (2). 
(e) PUBLIC NOTICE.—Upon submitting a report to the President 
under subsection (d), the Commission shall promptly make public 
the report (with the exception of information which the Commission 
determines to be confidential) and shall publish a summary of 
the report in the Federal Register. 
Deadline. 
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125 STAT. 454 
PUBLIC LAW 112–41—OCT. 21, 2011 
SEC. 313. PROVISION OF RELIEF. 
(a) IN GENERAL.—Not later than the date that is 30 days 
after the date on which the President receives a report of the 
Commission in which the Commission’s determination under section 
312(a) is affirmative, or which contains a determination under 
section 312(a) that the President considers to be affirmative under 
paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
1330(d)(1)), the President, subject to subsection (b), shall provide 
relief from imports of the article that is the subject of such deter-
mination to the extent that the President determines necessary 
to remedy or prevent the injury found by the Commission and 
to facilitate the efforts of the domestic industry to make a positive 
adjustment to import competition. 
(b) EXCEPTION.—The President is not required to provide import 
relief under this section if the President determines that the provi-
sion of the import relief will not provide greater economic and 
social benefits than costs. 
(c) NATURE OF RELIEF.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
import relief that the President is authorized to provide under 
this section with respect to imports of an article is as follows: 
(A) The suspension of any further reduction provided 
for under Annex 2-B of the Agreement in the duty imposed 
on the article. 
(B) An increase in the rate of duty imposed on the 
article to a level that does not exceed the lesser of— 
(i) the column 1 general rate of duty imposed under 
the HTS on like articles at the time the import relief 
is provided; or 
(ii) the column 1 general rate of duty imposed 
under the HTS on like articles on the day before the 
date on which the Agreement enters into force. 
(2) DUTIES APPLIED ON A SEASONAL BASIS.—In the case 
of imports of an article to which a duty is applied on a seasonal 
basis, the import relief that the President is authorized to 
provide under this section is as follows: 
(A) The suspension of any further reduction provided 
for under Annex 2-B of the Agreement in the duty imposed 
on the article. 
(B) An increase in the rate of duty imposed on the 
article to a level that does not exceed the lesser of— 
(i) the column 1 general rate of duty imposed under 
the HTS on like articles for the corresponding season 
immediately preceding the date the import relief is 
provided; or 
(ii) the column 1 general rate of duty imposed 
under the HTS for the corresponding season imme-
diately preceding the date on which the Agreement 
enters into force. 
(3) PROGRESSIVE LIBERALIZATION.—If the period for which 
import relief is provided under this section is greater than 
1 year, the President shall provide for the progressive liberaliza-
tion (described in article 10.2.7 of the Agreement) of such 
relief at regular intervals during the period of its application. 
(d) PERIOD OF RELIEF.— 
Deadline. 
President. 
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125 STAT. 455 
PUBLIC LAW 112–41—OCT. 21, 2011 
(1) IN GENERAL.—Subject to paragraph (2), any import relief 
that the President provides under this section may not be 
in effect for more than 2 years. 
(2) EXTENSION.— 
(A) IN
GENERAL.—Subject to subparagraph (C), the 
President, after receiving a determination from the 
Commission under subparagraph (B) that is affirmative, 
or which the President considers to be affirmative under 
paragraph (1) of section 330(d) of the Tariff Act of 1930 
(19 U.S.C. 1330(d)(1)), may extend the effective period of 
any import relief provided under this section by up to 
1 year, if the President determines that— 
(i) the import relief continues to be necessary to 
remedy or prevent serious injury and to facilitate 
adjustment by the domestic industry to import competi-
tion; and 
(ii) there is evidence that the industry is making 
a positive adjustment to import competition. 
(B) ACTION BY COMMISSION.— 
(i) INVESTIGATION.—Upon a petition on behalf of 
the industry concerned that is filed with the Commis-
sion not earlier than the date that is 9 months, and 
not later than the date that is 6 months, before the 
date on which any action taken under subsection (a) 
is to terminate, the Commission shall conduct an inves-
tigation to determine whether action under this section 
continues to be necessary to remedy or prevent serious 
injury and whether there is evidence that the industry 
is making a positive adjustment to import competition. 
(ii) NOTICE AND HEARING.—The Commission shall 
publish notice of the commencement of any proceeding 
under this subparagraph in the Federal Register and 
shall, within a reasonable time thereafter, hold a public 
hearing at which the Commission shall afford 
interested parties and consumers an opportunity to 
be present, to present evidence, and to respond to 
the presentations of other parties and consumers, and 
otherwise to be heard. 
(iii) REPORT.—The Commission shall submit to the 
President a report on its investigation and determina-
tion under this subparagraph not later than 60 days 
before the action under subsection (a) is to terminate, 
unless the President specifies a different date. 
(C) PERIOD OF IMPORT RELIEF.—Any import relief pro-
vided under this section, including any extensions thereof, 
may not, in the aggregate, be in effect for more than 
3 years. 
(e) RATE AFTER TERMINATION OF IMPORT RELIEF.—Beginning 
on the date on which import relief under this section is terminated 
with respect to an article, the rate of duty on that article shall 
be the rate that would have been in effect but for the provision 
of such relief. 
(f) ARTICLES EXEMPT FROM RELIEF.—No import relief may be 
provided under this section on any article that is subject to import 
relief under— 
(1) subtitle B or C; or 
Effective date. 
Federal Register, 
publication. 
Deadlines. 
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125 STAT. 456 
PUBLIC LAW 112–41—OCT. 21, 2011 
(2) chapter 1 of title II of the Trade Act of 1974 (19 
U.S.C. 2251 et seq.). 
SEC. 314. TERMINATION OF RELIEF AUTHORITY. 
(a) GENERAL RULE.—Subject to subsection (b), no import relief 
may be provided under this subtitle after the date that is 10 
years after the date on which the Agreement enters into force. 
(b) EXCEPTION.—If an article for which relief is provided under 
this subtitle is an article for which the period for tariff elimination, 
set forth in the Schedule of the United States to Annex 2-B of 
the Agreement, is greater than 10 years, no relief under this subtitle 
may be provided for that article after the date on which that 
period ends. 
(c) PRESIDENTIAL DETERMINATION.—Import relief may be pro-
vided under this subtitle in the case of a Korean article after 
the date on which such relief would, but for this subsection, termi-
nate under subsection (a) and (b), if the President determines 
that Korea has consented to such relief. 
SEC. 315. COMPENSATION AUTHORITY. 
For purposes of section 123 of the Trade Act of 1974 (19 
U.S.C. 2133), any import relief provided by the President under 
section 313 shall be treated as action taken under chapter 1 of 
title II of such Act (19 U.S.C. 2251 et seq.). 
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 
is amended in the first sentence— 
(1) by striking ‘‘and’’; and 
(2) by inserting before the period at the end ‘‘, and title 
III of the United States–Korea Free Trade Agreement 
Implementation Act’’. 
Subtitle B—Motor Vehicle Safeguard 
Measures 
SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES. 
The provisions of subtitle A shall apply with respect to a 
Korean motor vehicle article to the same extent that such provisions 
apply to Korean articles, except as follows: 
(1) Section 311(d) and paragraphs (2) and (3) of 313(c) 
shall not apply. 
(2) Section 313(d)(2)(A) shall be applied and administered 
by substituting ‘‘2 years’’ for ‘‘1 year’’. 
(3) Section 313(d)(2)(C) shall be applied and administered 
by substituting ‘‘4 years’’ for ‘‘3 years’’. 
(4) Section 313(f)(1) shall be applied and administered by 
substituting ‘‘subtitle A’’ for ‘‘subtitle B or C’’. 
(5) Section 314(b) shall be applied and administered as 
if such section read as follows: 
‘‘(b) EXCEPTION.—Import relief may be provided under this 
subtitle with respect to a Korean motor vehicle article during any 
period before the date that is 10 years after the date on which 
duties on the article are eliminated, as set forth in section 201(d), 
or, if the article is not referred to in section 201(d), the Schedule 
of the United States to Annex 2-B of the Agreement.’’. 
Applicability. 
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125 STAT. 457 
PUBLIC LAW 112–41—OCT. 21, 2011 
Subtitle C—Textile and Apparel Safeguard 
Measures 
SEC. 331. COMMENCEMENT OF ACTION FOR RELIEF. 
(a) IN GENERAL.—A request for action under this subtitle for 
the purpose of adjusting to the obligations of the United States 
under the Agreement may be filed with the President by an 
interested party. Upon the filing of a request, the President shall 
review the request to determine, from information presented in 
the request, whether to commence consideration of the request. 
(b) PUBLICATION OF REQUEST.—If the President determines that 
the request under subsection (a) provides the information necessary 
for the request to be considered, the President shall publish in 
the Federal Register a notice of commencement of consideration 
of the request, and notice seeking public comments regarding the 
request. The notice shall include a summary of the request and 
the dates by which comments and rebuttals must be received. 
SEC. 332. DETERMINATION AND PROVISION OF RELIEF. 
(a) DETERMINATION.— 
(1) IN GENERAL.—If a positive determination is made under 
section 331(b), the President shall determine whether, as a 
result of the reduction or elimination of a duty under the 
Agreement, a Korean textile or apparel article is being imported 
into the United States in such increased quantities, in absolute 
terms or relative to the domestic market for that article, and 
under such conditions as to cause serious damage, or actual 
threat thereof, to a domestic industry producing an article 
that is like, or directly competitive with, the imported article. 
(2) SERIOUS DAMAGE.—In making a determination under 
paragraph (1), the President— 
(A) shall examine the effect of increased imports on 
the domestic industry, as reflected in changes in such rel-
evant economic factors as output, productivity, utilization 
of capacity, inventories, market share, exports, wages, 
employment, domestic prices, profits, and investment, no 
one of which is necessarily decisive; and 
(B) shall not consider changes in technology or con-
sumer preference as factors supporting a determination 
of serious damage or actual threat thereof. 
(b) PROVISION OF RELIEF.— 
(1) IN GENERAL.—If a determination under subsection (a) 
is affirmative, the President may provide relief from imports 
of the article that is the subject of such determination, as 
provided in paragraph (2), to the extent that the President 
determines necessary to remedy or prevent the serious damage 
and to facilitate adjustment by the domestic industry. 
(2) NATURE OF RELIEF.—The relief that the President is 
authorized to provide under this subsection with respect to 
imports of an article is— 
(A) the suspension of any further reduction provided 
for under Annex 2-B of the Agreement in the duty imposed 
on the article; or 
(B) an increase in the rate of duty imposed on the 
article to a level that does not exceed the lesser of— 
President. 
Federal Register, 
publication. 
Review. 
President. 
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125 STAT. 458 
PUBLIC LAW 112–41—OCT. 21, 2011 
(i) the column 1 general rate of duty imposed under 
the HTS on like articles at the time the import relief 
is provided; or 
(ii) the column 1 general rate of duty imposed 
under the HTS on like articles on the day before the 
date on which the Agreement enters into force. 
SEC. 333. PERIOD OF RELIEF. 
(a) IN GENERAL.—Subject to subsection (b), the import relief 
that the President provides under section 332(b) may not be in 
effect for more than 2 years. 
(b) EXTENSION.— 
(1) IN GENERAL.—Subject to paragraph (2), the President 
may extend the effective period of any import relief provided 
under this subtitle for a period of not more than 2 years, 
if the President determines that— 
(A) the import relief continues to be necessary to 
remedy or prevent serious damage and to facilitate adjust-
ment by the domestic industry to import competition; and 
(B) there is evidence that the industry is making a 
positive adjustment to import competition. 
(2) LIMITATION.—Any relief provided under this subtitle, 
including any extensions thereof, may not, in the aggregate, 
be in effect for more than 4 years. 
SEC. 334. ARTICLES EXEMPT FROM RELIEF. 
The President may not provide import relief under this subtitle 
with respect to an article if— 
(1) import relief previously has been provided under this 
subtitle with respect to that article; or 
(2) the article is subject to import relief under— 
(A) subtitle A; or 
(B) chapter 1 of title II of the Trade Act of 1974 
(19 U.S.C. 2251 et seq.). 
SEC. 335. RATE AFTER TERMINATION OF IMPORT RELIEF. 
On the date on which import relief under this subtitle is termi-
nated with respect to an article, the rate of duty on that article 
shall be the rate that would have been in effect but for the provision 
of such relief. 
SEC. 336. TERMINATION OF RELIEF AUTHORITY. 
No import relief may be provided under this subtitle with 
respect to any article after the date that is 10 years after the 
date on which duties on the article are eliminated pursuant to 
the Agreement. 
SEC. 337. COMPENSATION AUTHORITY. 
For purposes of section 123 of the Trade Act of 1974 (19 
U.S.C. 2133), any import relief provided by the President under 
this subtitle shall be treated as action taken under chapter 1 
of title II of such Act (19 U.S.C. 2251 et seq.). 
SEC. 338. CONFIDENTIAL BUSINESS INFORMATION. 
The President may not release information received in connec-
tion with an investigation or determination under this subtitle 
which the President considers to be confidential business informa-
tion unless the party submitting the confidential business informa-
tion had notice, at the time of submission, that such information 
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125 STAT. 459 
PUBLIC LAW 112–41—OCT. 21, 2011 
would be released by the President, or such party subsequently 
consents to the release of the information. To the extent a party 
submits confidential business information, the party shall also pro-
vide a nonconfidential version of the information in which the 
confidential business information is summarized or, if necessary, 
deleted. 
Subtitle D—Cases Under Title II of the 
Trade Act of 1974 
SEC. 341. FINDINGS AND ACTION ON KOREAN ARTICLES. 
(a) EFFECT OF IMPORTS.—If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 
et seq.), the Commission makes an affirmative determination (or 
a determination which the President may treat as an affirmative 
determination under such chapter by reason of section 330(d) of 
the Tariff Act of 1930 (19 U.S.C. 1330(d))), the Commission shall 
also find (and report to the President at the time such injury 
determination is submitted to the President) whether imports of 
the Korean article are a substantial cause of serious injury or 
threat thereof. 
(b) PRESIDENTIAL DETERMINATION REGARDING KOREAN ARTI-
CLES.—In determining the nature and extent of action to be taken 
under chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 
2251 et seq.), the President may exclude from the action Korean 
articles with respect to which the Commission has made a negative 
finding under subsection (a). 
TITLE IV—PROCUREMENT 
SEC. 401. ELIGIBLE PRODUCTS. 
Section 308(4)(A) of the Trade Agreements Act of 1979 (19 
U.S.C. 2518(4)(A)) is amended— 
(1) by striking ‘‘or’’ at the end of clause (vi); 
(2) by striking the period at the end of clause (vii) and 
inserting ‘‘; or’’; and 
(3) by adding at the end the following new clause: 
‘‘(viii) a party to the United States–Korea Free 
Trade Agreement, a product or service of that country 
or instrumentality which is covered under that agree-
ment for procurement by the United States.’’. 
TITLE V—OFFSETS 
SEC. 501. INCREASE IN PENALTY ON PAID PREPARERS WHO FAIL TO 
COMPLY WITH EARNED INCOME TAX CREDIT DUE DILI-
GENCE REQUIREMENTS. 
(a) IN GENERAL.—Section 6695(g) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘$100’’ and inserting ‘‘$500’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to returns required to be filed after December 31, 
2011. 
26 USC 6695. 
Reports. 
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125 STAT. 460 
PUBLIC LAW 112–41—OCT. 21, 2011 
SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE UNITED 
STATES TO PROVIDE INFORMATION FOR TAX ADMINISTRA-
TION. 
(a) IN GENERAL.—Subchapter B of chapter 61 of the Internal 
Revenue Code of 1986 is amended by redesignating section 6116 
as section 6117 and by inserting after section 6115 the following 
new section: 
‘‘SEC. 6116. REQUIREMENT FOR PRISONS LOCATED IN UNITED STATES 
TO PROVIDE INFORMATION FOR TAX ADMINISTRATION. 
‘‘(a) IN GENERAL.—Not later than September 15, 2012, and 
annually thereafter, the head of the Federal Bureau of Prisons 
and the head of any State agency charged with the responsibility 
for administration of prisons shall provide to the Secretary in 
electronic format a list with the information described in subsection 
(b) of all the inmates incarcerated within the prison system for 
any part of the prior 2 calendar years or the current calendar 
year through August 31. 
‘‘(b) INFORMATION.—The information with respect to each 
inmate is— 
‘‘(1) first, middle, and last name, 
‘‘(2) date of birth, 
‘‘(3) institution of current incarceration or, for released 
inmates, most recent incarceration, 
‘‘(4) prison assigned inmate number, 
‘‘(5) the date of incarceration, 
‘‘(6) the date of release or anticipated date of release, 
‘‘(7) the date of work release, 
‘‘(8) taxpayer identification number and whether the prison 
has verified such number, 
‘‘(9) last known address, and 
‘‘(10) any additional information as the Secretary may 
request. 
‘‘(c) FORMAT.—The Secretary shall determine the electronic for-
mat of the information described in subsection (b).’’. 
(b) CLERICAL AMENDMENT.—The table of sections for such sub-
chapter is amended by striking the item relating to section 6116 
and by adding at the end the following new items: 
‘‘Sec. 6116. Requirement for prisons located in United States to provide information 
for tax administration. 
‘‘Sec. 6117. Cross reference.’’. 
SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES. 
For the period beginning on December 1, 2015, and ending 
on June 30, 2021, section 13031(a)(9) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be 
applied and administered— 
(1) in subparagraph (A), by substituting ‘‘0.3464’’ for ‘‘0.21’’; 
and 
(2) in subparagraph (B)(i), by substituting ‘‘0.3464’’ for 
‘‘0.21’’. 
SEC. 504. EXTENSION OF CUSTOMS USER FEES. 
(a) IN GENERAL.—Section 13031(j)(3)(A) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) 
is amended by striking ‘‘January 7, 2020’’ and inserting ‘‘August 
2, 2021’’. 
Time period. 
Applicability. 
Deadline. 
Lists. 
Time period. 
26 USC 6116. 
26 USC 6117. 
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125 STAT. 461 
PUBLIC LAW 112–41—OCT. 21, 2011 
LEGISLATIVE HISTORY—H.R. 3080 (S. 1642): 
HOUSE REPORTS: No. 112–239 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 157 (2011): 
Oct. 11, considered in House. 
Oct. 12, considered and passed House and Senate. 
(b) OTHER FEES.—Section 13031(j)(3)(B)(i) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i)) 
is amended by striking ‘‘January 14, 2020’’ and inserting ‘‘December 
8, 2020’’. 
SEC. 505. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 
Notwithstanding section 6655 of the Internal Revenue Code 
of 1986, in the case of a corporation with assets of not less than 
$1,000,000,000 (determined as of the end of the preceding taxable 
year)— 
(1) the amount of any required installment of corporate 
estimated tax which is otherwise due in July, August, or Sep-
tember of 2012 shall be increased by 0.25 percent of such 
amount (determined without regard to any increase in such 
amount not contained in such Code); 
(2) the amount of any required installment of corporate 
estimated tax which is otherwise due in July, August, or Sep-
tember of 2016 shall be increased by 2.75 percent of such 
amount (determined without regard to any increase in such 
amount not contained in such Code); and 
(3) the amount of the next required installment after an 
installment referred to in paragraph (1) or (2) shall be appro-
priately reduced to reflect the amount of the increase by reason 
of such paragraph. 
Approved October 21, 2011. 
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