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Engrossed in Senate (06/30/2005)

 
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1307 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
109th CONGRESS
  1st Session
                                S. 1307

_______________________________________________________________________

                                 AN ACT


 
To implement the Dominican Republic-Central America-United States Free 
                            Trade Agreement.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION. 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Dominican 
Republic-Central America-United States Free Trade Agreement 
Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and 
                            initial regulations.
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. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Retroactive application for certain liquidations and 
                            reliquidations of textile or apparel goods.
Sec. 206. Disclosure of incorrect information; false certifications of 
                            origin; denial of preferential tariff 
                            treatment.
Sec. 207. Reliquidation of entries.
Sec. 208. Recordkeeping requirements.
Sec. 209. Enforcement relating to trade in textile or apparel goods.
Sec. 210. Regulations.
                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.
     Subtitle A--Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.
           Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.
       Subtitle C--Cases Under Title II of the Trade Act of 1974

Sec. 331. Findings and action on goods of CAFTA-DR countries.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Eligible products.
Sec. 402. Modifications to the Caribbean Basin Economic Recovery Act.
Sec. 403. Periodic reports and meetings on labor obligations and labor 
                            capacity-building provisions.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to approve and implement the Free Trade Agreement 
        between the United States, Costa Rica, the Dominican Republic, 
        El Salvador, Guatemala, Honduras, and Nicaragua 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 strengthen and develop economic relations between 
        the United States, Costa Rica, the Dominican Republic, El 
        Salvador, Guatemala, Honduras, and Nicaragua for their mutual 
        benefit;
            (3) to establish free trade between the United States, 
        Costa Rica, the Dominican Republic, El Salvador, Guatemala, 
        Honduras, and Nicaragua through the reduction and elimination 
        of barriers to trade in goods and services and to investment; 
        and
            (4) to lay the foundation for further cooperation to expand 
        and enhance the benefits of the Agreement.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agreement.--The term ``Agreement'' means the Dominican 
        Republic-Central America-United States Free Trade Agreement 
        approved by the Congress under section 101(a)(1).
            (2) CAFTA-DR country.--Except as provided in section 203, 
        the term ``CAFTA-DR country'' means--
                    (A) Costa Rica, for such time as the Agreement is 
                in force between the United States and Costa Rica;
                    (B) the Dominican Republic, for such time as the 
                Agreement is in force between the United States and the 
                Dominican Republic;
                    (C) El Salvador, for such time as the Agreement is 
                in force between the United States and El Salvador;
                    (D) Guatemala, for such time as the Agreement is in 
                force between the United States and Guatemala;
                    (E) Honduras, for such time as the Agreement is in 
                force between the United States and Honduras; and
                    (F) Nicaragua, for such time as the Agreement is in 
                force between the United States and Nicaragua.
            (3) Commission.--The term ``Commission'' means the United 
        States International Trade Commission.
            (4) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (5) Textile or apparel good.--The term ``textile or apparel 
        good'' means a good listed in the Annex to the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other than 
        a good listed in Annex 3.29 of the Agreement.

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 Administrative 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), the Congress approves--
            (1) the Dominican Republic-Central America-United States 
        Free Trade Agreement entered into on August 5, 2004, with the 
        Governments of Costa Rica, the Dominican Republic, El Salvador, 
        Guatemala, Honduras, and Nicaragua, and submitted to the 
        Congress on __, 2005; and
            (2) the statement of administrative action proposed to 
        implement the Agreement that was submitted to the Congress on 
        __, 2005.
    (b) Conditions for Entry Into Force of the Agreement.--At such time 
as the President determines that countries listed in subsection (a)(1) 
have taken measures necessary to comply with the provisions of the 
Agreement that are to take effect on the date on which the Agreement 
enters into force, the President is authorized to provide for the 
Agreement to enter into force with respect to those countries that 
provide for the Agreement to enter into force for them.

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 provision 
        of the Agreement, nor the application of any such provision to 
        any person or circumstance, which is inconsistent with any law 
        of the United States shall have effect.
            (2) Construction.--Nothing in this Act shall be construed--
                    (A) to amend or modify any law of the United 
                States, or
                    (B) to limit any authority conferred under any law 
                of the United States,
        unless specifically provided for in this Act.
    (b) Relationship of Agreement to State Law.--
            (1) Legal challenge.--No State law, or the application 
        thereof, may be declared invalid as to any person or 
        circumstance 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 
        subsection, 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 Remedies.--No 
person other than the United States--
            (1) shall have any cause of action or defense under the 
        Agreement or by virtue of congressional approval thereof; or
            (2) may challenge, in any action brought under any 
        provision 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 
        enactment of this Act--
                    (A) the President may proclaim such actions, and
                    (B) other appropriate officers of the United States 
                Government may issue such regulations,
        as may be necessary to ensure that any provision of this Act, 
        or amendment made by this Act, that takes effect on the date 
        the Agreement enters into force is appropriately implemented on 
        such date, but no such proclamation or regulation may have an 
        effective date earlier than the date 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 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 Agreement 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 EFFECTIVE 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 
        proposed 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--
                    (A) the action proposed to be proclaimed and the 
                reasons 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 such Committees 
        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 administrative 
assistance to panels established under chapter 20 of the Agreement. The 
office may not be considered to be an agency for purposes of section 
552 of title 5, United States Code.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 2005 to the 
Department of Commerce such sums as may be necessary for the 
establishment and operations of the office established or designated 
under subsection (a) and for the payment of the United States share of 
the expenses of panels established under chapter 20 of the Agreement.

SEC. 106. ARBITRATION OF CLAIMS.

    The United States is authorized to resolve any claim against the 
United States covered by article 10.16.1(a)(i)(C) or article 
10.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State 
Dispute Settlement procedures set forth in section B of chapter 10 of 
the Agreement.

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the 
provisions of this Act and the amendments made by this Act take effect 
on the date the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on 
the date of the enactment of this Act.
    (c) Termination of CAFTA-DR Status.--During any period in which a 
country ceases to be a CAFTA-DR country, the provisions of this Act 
(other than this subsection) and the amendments made by this Act shall 
cease to have effect with respect to that country.
    (d) Termination of the Agreement.--On the date on which the 
Agreement ceases to be in force with respect to the United States, the 
provisions of this Act (other than this subsection) and the amendments 
made by this Act shall cease to have effect.

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--
            (1) Proclamation authority.--The President may proclaim--
                    (A) such modifications or continuation of any duty,
                    (B) such continuation of duty-free or excise 
                treatment, or
                    (C) such additional duties,
        as the President determines to be necessary or appropriate to 
        carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, 
        and 3.28, and Annexes 3.3, 3.27, and 3.28 of the Agreement.
            (2) Effect on gsp status.--Notwithstanding section 
        502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the 
        President shall terminate the designation of each CAFTA-DR 
        country as a beneficiary developing country for purposes of 
        title V of the Trade Act of 1974 on the date the Agreement 
        enters into force with respect to that country.
            (3) Effect on cbera status.--
                    (A) In general.--Notwithstanding section 212(a) of 
                the Caribbean Basin Economic Recovery Act (19 U.S.C. 
                2702(a)), the President shall terminate the designation 
                of each CAFTA-DR country as a beneficiary country for 
                purposes of that Act on the date the Agreement enters 
                into force with respect to that country.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                each such country shall be considered a beneficiary 
                country under section 212(a) of the Caribbean Basin 
                Economic Recovery Act, for purposes of--
                            (i) sections 771(7)(G)(ii)(III) and 
                        771(7)(H) of the Tariff Act of 1930 (19 U.S.C. 
                        1677(7)(G)(ii)(III) and 1677(7)(H));
                            (ii) the duty-free treatment provided under 
                        paragraph 12 of Appendix I of the General Notes 
                        to the Schedule of the United States to Annex 
                        3.3 of the Agreement; and
                            (iii) section 274(h)(6)(B) of the Internal 
                        Revenue Code of 1986.
    (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 a CAFTA-DR country regarding the staging of any duty 
        treatment set forth in Annex 3.3 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 
provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections 
(a) and (b), with respect to any good for which the base rate in the 
Schedule of the United States to Annex 3.3 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.

SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

    (a) General Provisions.--
            (1) Applicability of subsection.--This subsection applies 
        to additional duties assessed under subsection (b).
            (2) Applicable ntr (mfn) rate of duty.--For purposes of 
        subsection (b), the term ``applicable NTR (MFN) rate of duty'' 
        means, with respect to a safeguard good, a rate of duty that is 
        the lesser of--
                    (A) the column 1 general rate of duty that would, 
                at the time the additional duty is imposed under 
                subsection (b), apply to a good classifiable in the 
                same 8-digit subheading of the HTS as the safeguard 
                good; or
                    (B) the column 1 general rate of duty that would, 
                on the day before the date on which the Agreement 
                enters into force, apply to a good classifiable in the 
                same 8-digit subheading of the HTS as the safeguard 
                good.
            (3) Schedule rate of duty.--For purposes of subsection (b), 
        the term ``schedule rate of duty'' means, with respect to a 
        safeguard good, the rate of duty for that good that is set out 
        in the Schedule of the United States to Annex 3.3 of the 
        Agreement.
            (4) Safeguard good.--In this section, the term ``safeguard 
        good'' means a good--
                    (A) that is included in the Schedule of the United 
                States to Annex 3.15 of the Agreement;
                    (B) that qualifies as an originating good under 
                section 203, except that operations performed in or 
                material obtained from the United States shall be 
                considered as if the operations were performed in, and 
                the material was obtained from, a country that is not a 
                party to the Agreement; and
                    (C) for which a claim for preferential tariff 
                treatment under the Agreement has been made.
            (5) Exceptions.--No additional duty shall be assessed on a 
        good under subsection (b) if, at the time of entry, the good is 
        subject to import relief under--
                    (A) subtitle A of title III of this Act; or
                    (B) chapter 1 of title II of the Trade Act of 1974 
                (19 U.S.C. 2251 et seq.).
            (6) Termination.--The assessment of an additional duty on a 
        good under subsection (b) shall cease to apply to that good on 
        the date on which duty-free treatment must be provided to that 
        good under the Schedule of the United States to Annex 3.3 of 
        the Agreement.
            (7) Notice.--Not later than 60 days after the Secretary of 
        the Treasury first assesses an additional duty in a calendar 
        year on a good under subsection (b), the Secretary shall notify 
        the country whose good is subject to the additional duty in 
        writing of such action and shall provide to that country data 
        supporting the assessment of the additional duty.
    (b) Additional Duties on Safeguard Goods.--
            (1) In general.--In addition to any duty proclaimed under 
        subsection (a) or (b) of section 201, and subject to subsection 
        (a), the Secretary of the Treasury shall assess a duty, in the 
        amount determined under paragraph (2), on a safeguard good of a 
        CAFTA-DR country imported into the United States in a calendar 
        year if the Secretary determines that, prior to such 
        importation, the total volume of that safeguard good of such 
        country that is imported into the United States in that 
        calendar year exceeds 130 percent of the volume that is set out 
        for that safeguard good in the corresponding year in the table 
        for that country contained in Appendix I of the General Notes 
        to the Schedule of the United States to Annex 3.3 of the 
        Agreement. For purposes of this subsection, year 1 in that 
        table corresponds to the calendar year in which the Agreement 
        enters into force.
            (2) Calculation of additional duty.--The additional duty on 
        a safeguard good under this subsection shall be--
                    (A) in the case of a good classified under 
                subheading 1202.10.80, 1202.20.80, 2008.11.15, 
                2008.11.35, or 2008.11.60 of the HTS--
                            (i) in years 1 through 5, an amount equal 
                        to 100 percent of the excess of the applicable 
                        NTR (MFN) rate of duty over the schedule rate 
                        of duty;
                            (ii) in years 6 through 10, an amount equal 
                        to 75 percent of the excess of the applicable 
                        NTR (MFN) rate of duty over the schedule rate 
                        of duty; and
                            (iii) in years 11 through 14, an amount 
                        equal to 50 percent of the excess of the 
                        applicable NTR (MFN) rate of duty over the 
                        schedule rate of duty; and
                    (B) in the case of any other safeguard good--
                            (i) in years 1 through 14, an amount equal 
                        to 100 percent of the excess of the applicable 
                        NTR (MFN) rate of duty over the schedule rate 
                        of duty;
                            (ii) in years 15 through 17, an amount 
                        equal to 75 percent of the excess of the 
                        applicable NTR (MFN) rate of duty over the 
                        schedule rate of duty; and
                            (iii) in years 18 and 19, an amount equal 
                        to 50 percent of the excess of the applicable 
                        NTR (MFN) rate of duty over the schedule rate 
                        of duty.

SEC. 203. RULES OF ORIGIN.

    (a) Application and Interpretation.--In this section:
            (1) Tariff classification.--The basis for any tariff 
        classification is the HTS.
            (2) Reference to hts.--Whenever in this section there is a 
        reference to a chapter, heading, or subheading, such reference 
        shall be a reference to a chapter, heading, or subheading of 
        the HTS.
            (3) Cost or value.--Any cost or value 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 
        the United States or another CAFTA-DR country).
    (b) Originating Goods.--For purposes of this Act and for purposes 
of implementing the preferential tariff treatment provided for under 
the Agreement, except as otherwise provided in this section, a good is 
an originating good if--
            (1) the good is a good wholly obtained or produced entirely 
        in the territory of one or more of the CAFTA-DR countries;
            (2) the good--
                    (A) is produced entirely in the territory of one or 
                more of the CAFTA-DR countries, and--
                            (i) each of the nonoriginating materials 
                        used in the production of the good undergoes an 
                        applicable change in tariff classification 
                        specified in Annex 4.1 of the Agreement; or
                            (ii) the good otherwise satisfies any 
                        applicable regional value-content or other 
                        requirements specified in Annex 4.1 of the 
                        Agreement; and
                    (B) satisfies all other applicable requirements of 
                this section; or
            (3) the good is produced entirely in the territory of one 
        or more of the CAFTA-DR countries, exclusively from materials 
        described in paragraph (1) or (2).
    (c) Regional Value-Content.--
            (1) In general.--For purposes of subsection (b)(2), the 
        regional value-content of a good referred to in Annex 4.1 of 
        the Agreement, except for goods to which paragraph (4) applies, 
        shall be calculated by the importer, exporter, or producer of 
        the good, on the basis of the build-down method described in 
        paragraph (2) or the build-up method described in paragraph 
        (3).
            (2) Build-down method.--
                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                build-down method:

                                       av-vnm

                            rvc = -------- <greek-e> 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 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 = -------- <greek-e> 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 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 4.1 of the Agreement may be 
                calculated by the importer, exporter, or producer of 
                the good, on the basis of the following net cost 
                method:

                                       nc-vnm

                            rvc = -------- <greek-e> 100

                                         nc

                    (B) Definitions.--In subparagraph (A):
                            (i) Automotive good.--The term ``automotive 
                        good'' means a good provided for in any of 
                        subheadings 8407.31 through 8407.34, subheading 
                        8408.20, heading 8409, or in any of headings 
                        8701 through 8708.
                            (ii) RVC.--The term ``RVC'' means the 
                        regional value-content of the 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 that are acquired 
                        and used by the producer in the production of 
                        the automotive good, but does not include the 
                        value of a material that is self-produced.
                    (C) Motor vehicles.--
                            (i) Basis of calculation.--For purposes of 
                        determining the regional value-content under 
                        subparagraph (A) for an automotive good that is 
                        a motor vehicle provided for in any of headings 
                        8701 through 8705, an importer, exporter, or 
                        producer may average the amounts calculated 
                        under the formula contained in subparagraph 
                        (A), over the producer's fiscal year--
                                    (I) with respect to all motor 
                                vehicles in any 1 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 one or 
                                more of the CAFTA-DR countries.
                            (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 
                                vehicles, and is produced in the same 
                                plant in the territory of a CAFTA-DR 
                                country, as the good described in 
                                clause (i) for which regional value-
                                content is being calculated;
                                    (II) is the same class of motor 
                                vehicles, and is produced in the same 
                                plant in the territory of a CAFTA-DR 
                                country, as the good described in 
                                clause (i) for which regional value-
                                content is being calculated; or
                                    (III) is the same model line of 
                                motor vehicles produced in the 
                                territory of a CAFTA-DR country as the 
                                good described in clause (i) for which 
                                regional value-content is being 
                                calculated.
                    (D) Other automotive goods.--For purposes of 
                determining the regional value-content under 
                subparagraph (A) for automotive goods provided for in 
                any of subheadings 8407.31 through 8407.34, in 
                subheading 8408.20, or in heading 8409, 8706, 8707, or 
                8708, that are produced in the same plant, an importer, 
                exporter, or producer may--
                            (i) average the amounts calculated under 
                        the formula contained in 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) its own fiscal year,
                        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 automotive goods that 
                        are exported to the territory of one or more of 
                        the CAFTA-DR countries.
                    (E) Calculating net cost.--The importer, exporter, 
                or producer shall, consistent with the provisions 
                regarding allocation of costs set out in generally 
                accepted accounting principles, determine the net cost 
                of an automotive good under subparagraph (B) by--
                            (i) calculating the total cost incurred 
                        with respect to all goods produced by the 
                        producer of the automotive good, 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 all such 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, 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; 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 within or between the 
                        territory of one or more of the CAFTA-DR 
                        countries to the location of the producer.
                            (ii) Duties, taxes, and customs brokerage 
                        fees on the material paid in the territory of 
                        one or more of the CAFTA-DR countries, 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 
                material 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 one or more of the CAFTA-DR 
                        countries to the location of the producer.
                            (ii) Duties, taxes, and customs brokerage 
                        fees on the material paid in the territory of 
                        one or more of the CAFTA-DR countries, 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 territory of one or more of the 
                        CAFTA-DR countries.
    (e) Accumulation.--
            (1) Originating materials used in production of goods of 
        another country.--Originating materials from the territory of 
        one or more of the CAFTA-DR countries that are used in the 
        production of a good in the territory of another CAFTA-DR 
        country shall be considered to originate in the territory of 
        that other country.
            (2) Multiple procedures.--A good that is produced in the 
        territory of one or more of the CAFTA-DR countries by 1 or more 
        producers is an originating good if the good satisfies the 
        requirements of subsection (b) and all other applicable 
        requirements 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 
        classification pursuant to Annex 4.1 of the Agreement is an 
        originating good if--
                    (A) the value of all nonoriginating materials 
                that--
                            (i) are used in the production of the good, 
                        and
                            (ii) do not undergo the applicable change 
                        in tariff classification (set out in Annex 4.1 
                        of the Agreement),
                does not exceed 10 percent of the adjusted value of the 
                good;
                    (B) the good meets all other applicable 
                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 
        following:
                    (A) 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 subheading 1901.90 or 2106.90, that is 
                used in the production of a good provided for in 
                chapter 4.
                    (B) A nonoriginating material provided for in 
                chapter 4, or a nonoriginating dairy preparation 
                containing over 10 percent by weight of milk solids 
                provided for in subheading 1901.90, that is used in the 
                production of the following goods:
                            (i) Infant preparations containing over 10 
                        percent by weight of milk solids provided for 
                        in subheading 1901.10.
                            (ii) Mixes and doughs, containing over 25 
                        percent by weight of butterfat, not put up for 
                        retail sale, provided for in 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 subheading 2202.90.
                            (vi) Animal feeds containing over 10 
                        percent by weight of milk solids provided for 
                        in subheading 2309.90.
                    (C) A nonoriginating material provided for in 
                heading 0805, or any of subheadings 2009.11 through 
                2009.39, that is used in the production of a good 
                provided for in any of 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.
                    (D) A nonoriginating material provided for in 
                heading 0901 or 2101 that is used in the production of 
                a good provided for in heading 0901 or 2101.
                    (E) A nonoriginating material provided for in 
                heading 1006 that is used in the production of a good 
                provided for in heading 1102 or 1103 or subheading 
                1904.90.
                    (F) A nonoriginating material provided for in 
                chapter 15 that is used in the production of a good 
                provided for in chapter 15.
                    (G) A nonoriginating material provided for in 
                heading 1701 that is used in the production of a good 
                provided for in any of headings 1701 through 1703.
                    (H) A nonoriginating material provided for in 
                chapter 17 that is used in the production of a good 
                provided for in subheading 1806.10.
                    (I) Except as provided in subparagraphs (A) through 
                (H) and Annex 4.1 of the 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 out in Annex 4.1 of the Agreement, shall be 
                considered to be an originating good if--
                            (i) the total weight of all such fibers or 
                        yarns in that component is not more than 10 
                        percent of the total weight of that component; 
                        or
                            (ii) the yarns are those described in 
                        section 204(b)(3)(B)(vi)(IV) of the Andean 
                        Trade Preference Act (19 U.S.C. 
                        3203(b)(3)(B)(vi)(IV))(as in effect on the date 
                        of the enactment of this Act).
                    (B) Certain textile or apparel goods.--A textile or 
                apparel good containing elastomeric yarns in the 
                component of the good that determines the tariff 
                classification of the good shall be considered to be an 
                originating good only if such yarns are wholly formed 
                in the territory of a CAFTA-DR country.
                    (C) Yarn, fabric, or fiber.--For purposes of this 
                paragraph, 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 material or by using an inventory 
                management method with respect to the fungible good or 
                fungible material.
                    (B) Inventory management method.--In this 
                subsection, the term ``inventory 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 
                                CAFTA-DR country in which the 
                                production is performed; or
                                    (II) otherwise accepted by that 
                                country.
            (2) Election of inventory method.--A person selecting an 
        inventory management method under paragraph (1) for a 
        particular fungible good or fungible material shall continue to 
        use that method for that fungible good or fungible material 
        throughout the fiscal year of that person.
    (h) Accessories, Spare Parts, or Tools.--
            (1) In general.--Subject to paragraphs (2) and (3), 
        accessories, spare parts, or tools delivered with a good that 
        form part of the good's standard accessories, spare parts, or 
        tools shall--
                    (A) be treated as originating goods if the good is 
                an originating good; and
                    (B) be disregarded in determining whether all the 
                nonoriginating materials used in the production of the 
                good undergo the applicable change in tariff 
                classification set out in Annex 4.1 of the Agreement.
            (2) Conditions.--Paragraph (1) shall apply only if--
                    (A) the accessories, spare parts, or tools are 
                classified with and not invoiced separately from the 
                good, regardless of whether they appear specified or 
                separately identified in the invoice for 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 
        accessories, 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 out in 
Annex 4.1 of the Agreement, and, if the good is subject to a regional 
value-content requirement, the value of such packaging materials and 
containers shall be taken into account as originating or nonoriginating 
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 treated as 
an originating material without regard to where it is produced.
    (l) Transit and Transhipment.--A good that has undergone production 
necessary to qualify as an originating good under subsection (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 territories of the CAFTA-DR countries, other than 
        unloading, reloading, or any other operation necessary to 
        preserve the good in good condition or to transport the good to 
        the territory of a CAFTA-DR country; or
            (2) does not remain under the control of customs 
        authorities in the territory of a country other than a CAFTA-DR 
        country.
    (m) Goods Classifiable as Goods Put Up in Sets.--Notwithstanding 
the rules set forth in Annex 4.1 of the Agreement, goods classifiable 
as goods put up in sets for retail sale as provided for in General Rule 
of 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--
                    (A) in the case of textile or apparel goods, 10 
                percent of the adjusted value of the set; or
                    (B) in the case of a good, other than a textile or 
                apparel good, 15 percent of the adjusted value of the 
                set.
    (n) Definitions.--In this section:
            (1) Adjusted value.--The term ``adjusted value'' means the 
        value determined in accordance with Articles 1 through 8, 
        Article 15, and the 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, adjusted, if 
        necessary, to exclude any costs, charges, or expenses incurred 
        for transportation, insurance, and related services incident to 
        the international shipment of the merchandise from the country 
        of exportation to the place of importation.
            (2) CAFTA-DR country.--The term ``CAFTA-DR country'' 
        means--
                    (A) the United States; and
                    (B) Costa Rica, the Dominican Republic, El 
                Salvador, Guatemala, Honduras, or Nicaragua, for such 
                time as the Agreement is in force between the United 
                States and that country.
            (3) 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.
            (4) 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.
            (5) Generally accepted accounting principles.--The term 
        ``generally accepted accounting principles'' means the 
        recognized consensus or substantial authoritative support in 
        the territory of a CAFTA-DR country with respect to the 
        recording of revenues, expenses, costs, assets, and 
        liabilities, the disclosure of information, and the preparation 
        of financial statements. The principles may encompass broad 
        guidelines of general application as well as detailed 
        standards, practices, and procedures.
            (6) Goods wholly obtained or produced entirely in the 
        territory of one or more of the cafta-dr countries.--The term 
        ``goods wholly obtained or produced entirely in the territory 
        of one or more of the CAFTA-DR countries'' means--
                    (A) plants and plant products harvested or gathered 
                in the territory of one or more of the CAFTA-DR 
                countries;
                    (B) live animals born and raised in the territory 
                of one or more of the CAFTA-DR countries;
                    (C) goods obtained in the territory of one or more 
                of the CAFTA-DR countries from live animals;
                    (D) goods obtained from hunting, trapping, fishing 
                or aquaculture conducted in the territory of one or 
                more of the CAFTA-DR countries;
                    (E) minerals and other natural resources not 
                included in subparagraphs (A) through (D) that are 
                extracted or taken in the territory of one or more of 
                the CAFTA-DR countries;
                    (F) fish, shellfish, and other marine life taken 
                from the sea, seabed, or subsoil outside the territory 
                of one or more of the CAFTA-DR countries by vessels 
                registered or recorded with a CAFTA-DR country and 
                flying the flag of that country;
                    (G) goods produced on board factory ships from the 
                goods referred to in subparagraph (F), if such factory 
                ships are registered or recorded with that CAFTA-DR 
                country and fly the flag of that country;
                    (H) goods taken by a CAFTA-DR country or a person 
                of a CAFTA-DR country from the seabed or subsoil 
                outside territorial waters, if a CAFTA-DR country has 
                rights to exploit such seabed or subsoil;
                    (I) goods taken from outer space, if the goods are 
                obtained by a CAFTA-DR country or a person of a CAFTA-
                DR country and not processed in the territory of a 
                country other than a CAFTA-DR country;
                    (J) waste and scrap derived from--
                            (i) manufacturing or processing operations 
                        in the territory of one or more of the CAFTA-DR 
                        countries; or
                            (ii) used goods collected in the territory 
                        of one or more of the CAFTA-DR countries, if 
                        such goods are fit only for the recovery of raw 
                        materials;
                    (K) recovered goods derived in the territory of one 
                or more of the CAFTA-DR countries from used goods, and 
                used in the territory of a CAFTA-DR country in the 
                production of remanufactured goods; and
                    (L) goods produced in the territory of one or more 
                of the CAFTA-DR countries exclusively from--
                            (i) goods referred to in any of 
                        subparagraphs (A) through (J), or
                            (ii) the derivatives of goods referred to 
                        in clause (i),
                at any stage of production.
            (7) Identical goods.--The term ``identical goods'' means 
        identical goods as defined in the Agreement on Implementation 
        of Article VII of the General Agreement on Tariffs and Trade 
        1994 referred to in section 101(d)(8) of the Uruguay Round 
        Agreements Act;
            (8) Indirect material.--The term ``indirect material'' 
        means a good used in the production, testing, or inspection of 
        a good but not physically incorporated into the good, or a good 
        used in the maintenance of buildings or the operation of 
        equipment associated with the production of a good, including--
                    (A) fuel and energy;
                    (B) tools, dies, and molds;
                    (C) spare parts and materials used in the 
                maintenance of equipment or buildings;
                    (D) lubricants, greases, compounding materials, and 
                other materials used in production or used to operate 
                equipment or buildings;
                    (E) gloves, glasses, footwear, clothing, safety 
                equipment, and supplies;
                    (F) equipment, devices, and supplies used for 
                testing or inspecting the good;
                    (G) catalysts and solvents; and
                    (H) any other goods that are not incorporated into 
                the good but the use of which in the production of the 
                good can reasonably be demonstrated to be a part of 
                that production.
            (9) Material.--The term ``material'' means a good that is 
        used in the production of another good, including a part or an 
        ingredient.
            (10) Material that is self-produced.--The term ``material 
        that is self-produced'' means an originating material that is 
        produced by a producer of a good and used in the production of 
        that good.
            (11) Model line.--The term ``model line'' means a group of 
        motor vehicles having the same platform or model name.
            (12) Net cost.--The term ``net cost'' means total cost 
        minus sales promotion, marketing, and after-sales service 
        costs, royalties, shipping and packing costs, and non-allowable 
        interest costs that are included in the total cost.
            (13) Nonallowable interest costs.--The term ``nonallowable 
        interest costs'' means interest costs incurred by a producer 
        that exceed 700 basis points above the applicable official 
        interest rate for comparable maturities of the CAFTA-DR country 
        in which the producer is located.
            (14) Nonoriginating good or nonoriginating material.--The 
        terms ``nonoriginating good'' and ``nonoriginating material'' 
        mean a good or material, as the case may be, that does not 
        qualify as originating under this section.
            (15) Packing materials and containers for shipment.--The 
        term ``packing materials and containers for shipment'' means 
        the goods used to protect a good during its transportation and 
        does not include the packaging materials and containers in 
        which a good is packaged for retail sale.
            (16) Preferential tariff treatment.--The term 
        ``preferential tariff treatment'' means the customs duty rate, 
        and the treatment under article 3.10.4 of the Agreement, that 
        are applicable to an originating good pursuant to the 
        Agreement.
            (17) Producer.--The term ``producer'' means a person who 
        engages in the production of a good in the territory of a 
        CAFTA-DR country.
            (18) Production.--The term ``production'' means growing, 
        mining, harvesting, fishing, raising, trapping, hunting, 
        manufacturing, processing, assembling, or disassembling a good.
            (19) Reasonably allocate.--The term ``reasonably allocate'' 
        means to apportion in a manner that would be appropriate under 
        generally accepted accounting principles.
            (20) 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 condition of such individual parts.
            (21) Remanufactured good.--The term ``remanufactured good'' 
        means a good that is classified under chapter 84, 85, or 87, or 
        heading 9026, 9031, or 9032, other than a good classified under 
        heading 8418 or 8516, and that--
                    (A) is entirely or partially comprised of recovered 
                goods; and
                    (B) has a similar life expectancy and enjoys a 
                factory warranty similar to such a new good.
            (22) Total cost.--The term ``total cost'' means all product 
        costs, period costs, and other costs for a good incurred in the 
        territory of one or more of the CAFTA-DR countries.
            (23) Used.--The term ``used'' means used or consumed in the 
        production of goods.
    (o) Presidential Proclamation Authority.--
            (1) In general.--The President is authorized to proclaim, 
        as part of the HTS--
                    (A) the provisions set out in Annex 4.1 of the 
                Agreement; and
                    (B) any additional subordinate category necessary 
                to carry out this title consistent with the Agreement.
            (2) Fabrics and yarns not available in commercial 
        quantities in the united states.--The President is authorized 
        to proclaim that a fabric or yarn is added to the list in Annex 
        3.25 of the Agreement in an unrestricted quantity, as provided 
        in article 3.25.4(e) of the Agreement.
            (3) Modifications.--
                    (A) In general.--Subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim modifications to the provisions proclaimed 
                under the authority of paragraph (1)(A), other than 
                provisions of chapters 50 through 63, as included in 
                Annex 4.1 of the Agreement.
                    (B) Additional proclamations.--Notwithstanding 
                subparagraph (A), and subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim before the end of the 1-year period beginning 
                on the date of the enactment of this Act, modifications 
                to correct any typographical, clerical, or other 
                nonsubstantive technical error regarding the provisions 
                of chapters 50 through 63, as included in Annex 4.1 of 
                the Agreement.
            (4) Fabrics, yarns, or fibers not available in commercial 
        quantities in the cafta-dr countries.--
                    (A) In general.--Notwithstanding paragraph 3(A), 
                the list of fabrics, yarns, and fibers set out in Annex 
                3.25 of the Agreement may be modified as provided for 
                in this paragraph.
                    (B) Definitions.--In this paragraph:
                            (i) The term ``interested entity'' means 
                        the government of a CAFTA-DR country other than 
                        the United States, a potential or actual 
                        purchaser of a textile or apparel good, or a 
                        potential or actual supplier of a textile or 
                        apparel good.
                            (ii) All references to ``day'' and ``days'' 
                        exclude Saturdays, Sundays, and legal holidays.
                    (C) Requests to add fabrics, yarns, or fibers.--(i) 
                An interested entity may request the President to 
                determine that a fabric, yarn, or fiber is not 
                available in commercial quantities in a timely manner 
                in the CAFTA-DR countries and to add that fabric, yarn, 
                or fiber to the list in Annex 3.25 of the Agreement in 
                a restricted or unrestricted quantity.
                    (ii) After receiving a request under clause (i), 
                the President may determine whether--
                            (I) the fabric, yarn, or fiber is available 
                        in commercial quantities in a timely manner in 
                        the CAFTA-DR countries; or
                            (II) any interested entity objects to the 
                        request.
                    (iii) The President may, within the time periods 
                specified in clause (iv), proclaim that a fabric, yarn, 
                or fiber that is the subject of a request submitted 
                under clause (i) is added to the list in Annex 3.25 of 
                the Agreement in an unrestricted quantity, or in any 
                restricted quantity that the President may establish, 
                if the President determines under clause (ii) that--
                            (I) the fabric, yarn, or fiber is not 
                        available in commercial quantities in a timely 
                        manner in the CAFTA-DR countries; or
                            (II) no interested entity has objected to 
                        the request.
                    (iv) The time periods within which the President 
                may issue a proclamation under clause (iii) are--
                            (I) not later than 30 days after the date 
                        on which the request is submitted under clause 
                        (i); or
                            (II) not later than 44 days after the 
                        request is submitted, if the President 
                        determines, within 30 days after the date on 
                        which the request is submitted, that the 
                        President does not have sufficient information 
                        to make a determination under clause (ii).
                    (v) Notwithstanding section 103(a)(2), a 
                proclamation made under clause (iii) shall take effect 
                on the date on which the text of the proclamation is 
                published in the Federal Register.
                    (vi) Not later than 6 months after proclaiming 
                under clause (iii) that a fabric, yarn, or fiber is 
                added to the list in Annex 3.25 of the Agreement in a 
                restricted quantity, the President may eliminate the 
                restriction if the President determines that the 
                fabric, yarn, or fiber is not available in commercial 
                quantities in a timely manner in the CAFTA-DR 
                countries.
                    (D) Deemed approval of request.--If, after an 
                interested entity submits a request under subparagraph 
                (C)(i), the President does not, within the applicable 
                time period specified in subparagraph (C)(iv), make a 
                determination under subparagraph (C)(ii) regarding the 
                request, the fabric, yarn, or fiber that is the subject 
                of the request shall be considered to be added, in an 
                unrestricted quantity, to the list in Annex 3.25 of the 
                Agreement beginning--
                            (i) 45 days after the date on which the 
                        request was submitted; or
                            (ii) 60 days after the date on which the 
                        request was submitted, if the President made a 
                        determination under subparagraph (C)(iv)(II).
                    (E) Requests to restrict or remove fabrics, yarns, 
                or fibers.--(i) Subject to clause (ii), an interested 
                entity may request the President to restrict the 
                quantity of, or remove from the list in Annex 3.25 of 
                the Agreement, any fabric, yarn, or fiber--
                            (I) that has been added to that list in an 
                        unrestricted quantity pursuant to paragraph (2) 
                        or subparagraph (C)(iii) or (D); or
                            (II) with respect to which the President 
                        has eliminated a restriction under subparagraph 
                        (C)(vi).
                    (ii) An interested entity may submit a request 
                under clause (i) at any time beginning 6 months after 
                the date of the action described in subclause (I) or 
                (II) of that clause.
                    (iii) Not later than 30 days after the date on 
                which a request under clause (i) is submitted, the 
                President may proclaim an action provided for under 
                clause (i) if the President determines that the fabric, 
                yarn, or fiber that is the subject of the request is 
                available in commercial quantities in a timely manner 
                in the CAFTA-DR countries.
                    (iv) A proclamation declared under clause (iii) 
                shall take effect no earlier than the date that is 6 
                months after the date on which the text of the 
                proclamation is published in the Federal Register.
                    (F) Procedures.--The President shall establish 
                procedures--
                            (i) governing the submission of a 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 subparagraph (C) (ii) or 
                        (vi) or (E)(iii).

SEC. 204. CUSTOMS USER FEES.

    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph 
(14), the following:
            ``(15) No fee may be charged under subsection (a) (9) or 
        (10) with respect to goods that qualify as originating goods 
        under section 203 of the Dominican Republic-Central America-
        United States Free Trade Agreement Implementation Act. Any 
        service for which an exemption from such fee is provided by 
        reason of this paragraph may not be funded with money contained 
        in the Customs User Fee Account.''.

SEC. 205. RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND 
              RELIQUIDATIONS OF TEXTILE OR APPAREL GOODS.

    (a) In General.--Notwithstanding section 514 of the Tariff Act of 
1930 (19 U.S.C. 1514) or any other provision of law, and subject to 
subsection (c), an entry--
            (1) of a textile or apparel good--
                    (A) of a CAFTA-DR country that the United States 
                Trade Representative has designated as an eligible 
                country under subsection (b), and
                    (B) that would have qualified as an originating 
                good under section 203 if the good had been entered 
                after the date of entry into force of the Agreement for 
                that country,
            (2) that was made on or after January 1, 2004, and before 
        the date of the entry into force of the Agreement with respect 
        to that country, and
            (3) for which customs duties in excess of the applicable 
        rate of duty for that good set out in the Schedule of the 
        United States to Annex 3.3 of the Agreement were paid,
shall be liquidated or reliquidated at the applicable rate of duty for 
that good set out in the Schedule of the United States to Annex 3.3 of 
the Agreement, and the Secretary of the Treasury shall refund any 
excess customs duties paid with respect to such entry.
    (b) Eligible Country.--The United States Trade Representative shall 
determine, in accordance with article 3.20 of the Agreement, which 
CAFTA-DR countries are eligible countries for purposes of this section, 
and shall publish a list of all such countries in the Federal Register.
    (c) Requests.--Liquidation or reliquidation may be made under 
subsection (a) with respect to an entry of a textile or apparel good 
only if a request therefor is filed with the Bureau of Customs and 
Border Protection, within such period as the Bureau of Customs and 
Border Protection shall establish by regulation in consultation with 
the Secretary of the Treasury, that contains sufficient information to 
enable the Bureau of Customs and Border Protection--
            (1)(A) to locate the entry; or
            (B) to reconstruct the entry if it cannot be located; and
            (2) to determine that the good satisfies the conditions set 
        out in subsection (a).
    (d) Definition.--As used in this section, the term ``entry'' 
includes a withdrawal from warehouse for consumption.

SEC. 206. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF 
              ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.

    (a) Disclosure of Incorrect Information.--Section 592 of the Tariff 
Act of 1930 (19 U.S.C. 1592) is amended--
            (1) in subsection (c)--
                    (A) by redesignating paragraph (9) as paragraph 
                (10); and
                    (B) by inserting after paragraph (8) the following 
                new paragraph:
            ``(9) Prior disclosure regarding claims under the dominican 
        republic-central america-united states 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 203 of the Dominican Republic-
        Central America-United States Free Trade Agreement 
        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.''; and
            (2) by adding at the end the following new subsection:
    ``(h) False Certifications of Origin Under the Dominican Republic-
Central America-United States Free Trade Agreement.--
            ``(1) In general.--Subject to paragraph (2), it is unlawful 
        for any person to certify falsely, by fraud, gross negligence, 
        or negligence, in a CAFTA-DR certification of origin (as 
        defined in section 508(g)(1)(B) of this Act) that a good 
        exported from the United States qualifies as an originating 
        good under the rules of origin set out in section 203 of the 
        Dominican Republic-Central America-United States Free Trade 
        Agreement Implementation Act. The procedures and penalties of 
        this section that apply to a violation of subsection (a) also 
        apply to a violation of this subsection.
            ``(2) Prompt and voluntary disclosure of incorrect 
        information.--No penalty shall be imposed under this subsection 
        if, promptly after an exporter or producer that issued a CAFTA-
        DR 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 may not be considered to have 
        violated paragraph (1) if--
                    ``(A) the information was correct at the time it 
                was provided in a CAFTA-DR certification of origin but 
                was later rendered incorrect due to a change in 
                circumstances; and
                    ``(B) the person promptly and voluntarily provides 
                written notice of the change in 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:
    ``(h) Denial of Preferential Tariff Treatment Under the Dominican 
Republic-Central America-United States Free Trade Agreement.--If the 
Bureau of Customs and Border Protection or the Bureau of Immigration 
and Customs Enforcement finds indications of a pattern of conduct by an 
importer, exporter, or producer of false or unsupported representations 
that goods qualify under the rules of origin set out in section 203 of 
the Dominican Republic-Central America-United States Free Trade 
Agreement Implementation Act, the Bureau of Customs and Border 
Protection, in accordance with regulations issued by the Secretary of 
the Treasury, may suspend preferential tariff treatment under the 
Dominican Republic-Central America-United States Free Trade Agreement 
to entries of identical goods covered by subsequent representations by 
that importer, exporter, or producer until the Bureau of Customs and 
Border Protection determines that representations of that person are in 
conformity with such section 203.''.

SEC. 207. RELIQUIDATION OF ENTRIES.

    Subsection (d) of section 520 of the Tariff Act of 1930 (19 U.S.C. 
1520(d)) is amended--
            (1) in the matter preceding paragraph (1), by striking ``or 
        section 202 of the United States-Chile Free Trade Agreement 
        Implementation Act'' and inserting ``, section 202 of the 
        United States-Chile Free Trade Agreement Implementation Act, or 
        section 203 of the Dominican Republic-Central America-United 
        States Free Trade Agreement Implementation Act''; and
            (2) in paragraph (2), by inserting ``or certifications'' 
        after ``other certificates''.

SEC. 208. RECORDKEEPING REQUIREMENTS.

    Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--
            (1) by redesignating subsection (g) as subsection (h);
            (2) by inserting after subsection (f) the following new 
        subsection:
    ``(g) Certifications of Origin for Goods Exported Under the 
Dominican Republic-Central America-United States 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 
                documents 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) CAFTA-DR certification of origin.--The term 
                `CAFTA-DR certification of origin' means the 
                certification established under article 4.16 of the 
                Dominican Republic-Central America-United States Free 
                Trade Agreement that a good qualifies as an originating 
                good under such Agreement.
            ``(2) Exports to cafta-dr countries.--Any person who 
        completes and issues a CAFTA-DR 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 supporting documents related to the origin of the 
        good (including the certification or copies thereof).
            ``(3) Retention period.--Records and supporting documents 
        shall be kept by the person who issued a CAFTA-DR certification 
        of origin for at least 5 years after the date on which the 
        certification was issued.''; and
            (3) in subsection (h), as so redesignated--
                    (A) by inserting ``or (g)'' after ``(f)''; and
                    (B) by striking ``that subsection'' and inserting 
                ``either such subsection''.

SEC. 209. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL GOODS.

    (a) Action During Verification.--
            (1) In general.--If the Secretary of the Treasury requests 
        the government of a CAFTA-DR country to conduct a verification 
        pursuant to article 3.24 of the Agreement for purposes of 
        making a determination 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 paragraph is 
        a determination--
                    (A) that an exporter or producer in that country is 
                complying with applicable customs laws, regulations, 
                and procedures regarding trade in textile or apparel 
                goods, or
                    (B) that a claim that a textile or apparel good 
                exported or produced by such exporter or producer--
                            (i) qualifies as an originating good under 
                        section 203 of this Act, or
                            (ii) is a good of a CAFTA-DR country,
                is accurate.
    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
            (1) suspension of preferential tariff treatment under the 
        Agreement 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 subsection (a)(2)(A), if the 
                Secretary determines there is insufficient information 
                to support any claim for preferential tariff treatment 
                that has been made with respect to any such good; or
                    (B) the textile or apparel good for which a claim 
                of preferential tariff treatment has been made that is 
                the subject of a verification under subsection (a)(1) 
                regarding a claim described in subsection (a)(2)(B), if 
                the Secretary determines there is insufficient 
                information to support that claim;
            (2) denial of preferential tariff treatment under the 
        Agreement 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 subsection (a)(2)(A), if the 
                Secretary determines that the person has provided 
                incorrect information to support any claim for 
                preferential tariff treatment that has been made with 
                respect to any such good; or
                    (B) the textile or apparel good for which a claim 
                of preferential tariff treatment has been made that is 
                the subject of a verification under subsection (a)(1) 
                regarding a claim described in subsection (a)(2)(B), if 
                the Secretary determines that a person has provided 
                incorrect information to support that claim;
            (3) detention 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) or a claim described in subsection 
        (a)(2)(B), if the Secretary determines there is insufficient 
        information to determine the country of origin of any such 
        good; and
            (4) denial of entry into the United States 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) or a claim 
        described in subsection (a)(2)(B), if the Secretary determines 
        that the person has provided incorrect information as to the 
        country of origin of any such good.
    (c) Action on Completion of a Verification.--On completion of a 
verification under subsection (a), 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 
determination under subsection (a)(2) or until such earlier date as the 
President may direct.
    (d) Appropriate Action Described.--Appropriate action under 
subsection (c) includes--
            (1) denial of preferential tariff treatment under the 
        Agreement 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 subsection (a)(2)(A), if the 
                Secretary determines there is insufficient information 
                to support, or that the person has provided incorrect 
                information to support, any claim for preferential 
                tariff treatment that has been made with respect to any 
                such good; or
                    (B) the textile or apparel good for which a claim 
                of preferential tariff treatment has been made that is 
                the subject of a verification under subsection (a)(1) 
                regarding a claim described in subsection (a)(2)(B), if 
                the Secretary determines there is insufficient 
                information to support, or that a person has provided 
                incorrect information to support, that claim; and
            (2) denial of entry into the United States 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) or a claim 
        described in subsection (a)(2)(B), if the Secretary determines 
        there is insufficient information to determine, or that the 
        person has provided incorrect information as to, the country of 
        origin of any such good.
    (e) Publication of Name of Person.--The Secretary may publish the 
name of any person that the Secretary has determined--
            (1) is engaged in intentional circumvention of applicable 
        laws, regulations, 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.

SEC. 210. REGULATIONS.

    The Secretary of the Treasury shall prescribe such regulations as 
may be necessary to carry out--
            (1) subsections (a) through (n) of section 203;
            (2) the amendment made by section 204; and
            (3) any proclamation issued under section 203(o).

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

    In this title:
            (1) CAFTA-DR article.--The term ``CAFTA-DR article'' means 
        an article that qualifies as an originating good under section 
        203(b).
            (2) CAFTA-DR textile or apparel article.--The term ``CAFTA-
        DR textile or apparel article'' means a textile or apparel good 
        (as defined in section 3(5)) that is a CAFTA-DR article.
            (3) De minimis supplying country.--
                    (A) Subject to subparagraph (B), the term ``de 
                minimis supplying country'' means a CAFTA-DR country 
                whose share of imports of the relevant CAFTA-DR article 
                into the United States does not exceed 3 percent of the 
                aggregate volume of imports of the relevant CAFTA-DR 
                article in the most recent 12-month period for which 
                data are available that precedes the filing of the 
                petition under section 311(a).
                    (B) A CAFTA-DR country shall not be considered to 
                be a de minimis supplying country if the aggregate 
                share of imports of the relevant CAFTA-DR article into 
                the United States of all CAFTA-DR countries that 
                satisfy the conditions of subparagraph (A) exceeds 9 
                percent of the aggregate volume of imports of the 
                relevant CAFTA-DR article during the applicable 12-
                month period.
            (4) Relevant cafta-dr article.--The term ``relevant CAFTA-
        DR article'' means the CAFTA-DR article with respect to which a 
        petition has been filed under section 311(a).

     Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--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 representative of an industry. The 
Commission shall transmit a copy of any petition filed under this 
subsection to the United States Trade Representative.
    (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 CAFTA-DR 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 CAFTA-DR 
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 (i).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any CAFTA-DR article if, 
after the date that the Agreement enters into force, import relief has 
been provided with respect to that CAFTA-DR article under this 
subtitle.

SEC. 312. COMMISSION ACTION ON PETITION.

    (a) Determination.--Not later than 120 days 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. At that time, the Commission shall also determine whether 
any CAFTA-DR country is a de minimis supplying country.
    (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 Determination 
Affirmative.--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 determination as provided for under paragraph (1) of 
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)), 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. The 
import relief recommended by the Commission under this subsection shall 
be limited to the relief described in section 313(c). 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 recommendation; and
            (3) any dissenting or separate views by members of the 
        Commission regarding the determination and recommendation 
        referred to in paragraphs (1) and (2).
    (e) Public Notice.--Upon submitting a report to the President under 
subsection (d), the Commission shall promptly make public such report 
(with the exception of information which the Commission determines to 
be confidential) and shall cause a summary thereof to be published in 
the Federal Register.

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 the 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 determination 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 
provision of the import relief will not provide greater economic and 
social benefits than costs.
    (c) Nature of Relief.--
            (1) In general.--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 3.3 of the Agreement in the 
                duty imposed on such article.
                    (B) An increase in the rate of duty imposed on such 
                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) 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 
        liberalization (described in article 8.2.3 of the Agreement) of 
        such relief at regular intervals during the period of its 
        application.
    (d) Period of Relief.--
            (1) In general.--Subject to paragraph (2), any import 
        relief that the President is authorized to provide under this 
        section may not, in the aggregate, be in effect for more than 4 
        years.
            (2) Extension.--
                    (A) In general.--If the initial period for any 
                import relief provided under this section is less than 
                4 years, 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, subject to the limitation 
                under paragraph (1), 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 competition; and
                            (ii) there is evidence that the industry is 
                        making a positive adjustment to import 
                        competition.
                    (B) Action by commission.--(i) Upon a petition on 
                behalf of the industry concerned that is filed with the 
                Commission not earlier than the date which is 9 months, 
                and not later than the date which is 6 months, before 
                the date on which any action taken under subsection (a) 
                is to terminate, the Commission shall conduct an 
                investigation 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) 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) The Commission shall transmit to the 
                President a report on its investigation and 
                determination under this subparagraph not later than 60 
                days before the action under subsection (a) is to 
                terminate, unless the President specifies a different 
                date.
    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article--
            (1) the rate of duty on that article after such termination 
        and on or before December 31 of the year in which such 
        termination occurs shall be the rate that, according to the 
        Schedule of the United States to Annex 3.3 of the Agreement 
        would have been in effect 1 year after the provision of relief 
        under subsection (a); and
            (2) the rate of duty for that article after December 31 of 
        the year in which termination occurs shall be, at the 
        discretion of the President, either--
                    (A) the applicable rate of duty for that article 
                set out in the Schedule of the United States to Annex 
                3.3 of the Agreement; or
                    (B) the rate of duty resulting from the elimination 
                of the tariff in equal annual stages ending on the date 
                set out in the Schedule of the United States to Annex 
                3.3 of the Agreement for the elimination of the tariff.
    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on--
            (1) any article subject to import relief under chapter 1 of 
        title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.); or
            (2) imports of a CAFTA-DR article of a CAFTA-DR country 
        that is a de minimis supplying country with respect to that 
        article.

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 out in the Schedule of the United States to Annex 3.3 
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.

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.

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 Dominican Republic-Central America-United States 
        Free Trade Agreement Implementation Act''.

           Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

    (a) In General.--A request 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 cause to be published 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. 322. DETERMINATION AND PROVISION OF RELIEF.

    (a) Determination.--
            (1) In general.--If a positive determination is made under 
        section 321(b), the President shall determine whether, as a 
        result of the elimination of a duty under the Agreement, a 
        CAFTA-DR textile or apparel article of a specified CAFTA-DR 
        country 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 relevant economic factors as output, productivity, 
                utilization of capacity, inventories, market share, 
                exports, wages, employment, domestic prices, profits, 
                and investment, none of which is necessarily decisive; 
                and
                    (B) shall not consider changes in technology or 
                consumer preference as factors supporting a 
                determination of serious damage or actual threat 
                thereof.
            (3) Deadline for determination.--The President shall make 
        the determination under paragraph (1) no later than 30 days 
        after the completion of any consultations held pursuant to 
        article 3.23.4 of the Agreement.
    (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 an increase in the rate of duty 
        imposed on the article to a level that does not exceed the 
        lesser of--
                    (A) the column 1 general rate of duty imposed under 
                the HTS on like articles at the time the import relief 
                is provided; or
                    (B) 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. 323. PERIOD OF RELIEF.

    (a) In General.--Subject to subsection (b), any import relief that 
the President provides under subsection (b) of section 322 may not, in 
the aggregate, be in effect for more than 3 years.
    (b) Extension.--If the initial period for any import relief 
provided under section 322 is less than 3 years, the President may 
extend the effective period of any import relief provided under that 
section, subject to the limitation set forth in subsection (a), if the 
President determines that--
            (1) the import relief continues to be necessary to remedy 
        or prevent serious damage and to facilitate adjustment by the 
        domestic industry to import competition; and
            (2) there is evidence that the industry is making a 
        positive adjustment to import competition.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

    The President may not provide import relief under this subtitle 
with respect to any 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.

SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

    When import relief under this subtitle 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.

SEC. 326. TERMINATION OF RELIEF AUTHORITY.

    No import relief may be provided under this subtitle with respect 
to any article after the date that is 5 years after the date on which 
the Agreement enters into force.

SEC. 327. 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 that 
Act.

SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.

    The President may not release information received in connection 
with a review under this subtitle which the President considers to be 
confidential business information unless the party submitting the 
confidential business information had notice, at the time of 
submission, that such information 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, it 
shall also provide a nonconfidential version of the information in 
which the confidential business information is summarized or, if 
necessary, deleted.

       Subtitle C--Cases Under Title II of the Trade Act of 1974

SEC. 331. FINDINGS AND ACTION ON GOODS OF CAFTA-DR COUNTRIES.

    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974, 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), 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 article of each 
CAFTA-DR country that qualify as originating goods under section 203(b) 
are a substantial cause of serious injury or threat thereof.
    (b) Presidential Determination Regarding Imports of CAFTA-DR 
Countries.--In determining the nature and extent of action to be taken 
under chapter 1 of title II of the Trade Act of 1974, the President may 
exclude from the action goods of a CAFTA-DR country with respect to 
which the Commission has made a negative finding under subsection (a).

                        TITLE IV--MISCELLANEOUS

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 (ii);
            (2) by striking the period at the end of clause (iii) and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                            ``(iv) a party to the Dominican Republic-
                        Central America-United States Free Trade 
                        Agreement, a product or service of that country 
                        or instrumentality which is covered under that 
                        Agreement for procurement by the United 
                        States.''.

SEC. 402. MODIFICATIONS TO THE CARIBBEAN BASIN ECONOMIC RECOVERY ACT.

    (a) Former Beneficiary Countries.--Section 212(a)(1) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended 
by adding at the end the following new subparagraph:
                    ``(F) The term `former beneficiary country' means a 
                country that ceases to be designated as a beneficiary 
                country under this title because the country has become 
                a party to a free trade agreement with the United 
                States.''.
    (b) Countries Eligible for Designation as Beneficiary Countries.--
Section 212(b) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
2702(b)) is amended by striking from the list of countries eligible for 
designation as beneficiary countries--
            (1) ``Costa Rica'', effective on the date the President 
        terminates the designation of Costa Rica as a beneficiary 
        country pursuant to section 201(a)(3);
            (2) ``Dominican Republic'', effective on the date the 
        President terminates the designation of the Dominican Republic 
        as a beneficiary country pursuant to section 201(a)(3);
            (3) ``El Salvador'', effective on the date the President 
        terminates the designation of El Salvador as a beneficiary 
        country pursuant to section 201(a)(3);
            (4) ``Guatemala'', effective on the date the President 
        terminates the designation of Guatemala as a beneficiary 
        country pursuant to section 201(a)(3);
            (5) ``Honduras'', effective on the date the President 
        terminates the designation of Honduras as a beneficiary country 
        pursuant to section 201(a)(3); and
            (6) ``Nicaragua'', effective on the date the President 
        terminates the designation of Nicaragua as a beneficiary 
        country pursuant to section 201(a)(3).
    (c) Materials of, or Processing in, Former Beneficiary Countries.--
Section 213(a)(1) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703(a)(1)) is amended by striking ``the Commonwealth of Puerto 
Rico and the United States Virgin Islands'' and inserting ``the 
Commonwealth of Puerto Rico, the United States Virgin Islands, and any 
former beneficiary country''.
    (d) Definitions and Special Rules.--Section 213(b)(5) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)(5)) is amended 
by adding at the end the following new subparagraphs:
                    ``(G) Former cbtpa beneficiary country.--The term 
                `former CBTPA beneficiary country' means a country that 
                ceases to be designated as a CBTPA beneficiary country 
                under this title because the country has become a party 
                to a free trade agreement with the United States.
                    ``(H) Articles that undergo production in a cbtpa 
                beneficiary country and a former cbtpa beneficiary 
                country.--(i) For purposes of determining the 
                eligibility of an article for preferential treatment 
                under paragraph (2) or (3), references in either such 
                paragraph, and in subparagraph (C) of this paragraph 
                to--
                            ``(I) a `CBTPA beneficiary country' shall 
                        be considered to include any former CPTPA 
                        beneficiary country, and
                            ``(II) `CBTPA beneficiary countries' shall 
                        be considered to include former CBTPA 
                        beneficiary countries,
                if the article, or a good used in the production of the 
                article, undergoes production in a CBTPA beneficiary 
                country.
                    ``(ii) An article that is eligible for preferential 
                treatment under clause (i) shall not be ineligible for 
                such treatment because the article is imported directly 
                from a former CBTPA beneficiary country.
                    ``(iii) Notwithstanding clauses (i) and (ii), an 
                article that is a good of a former CBTPA beneficiary 
                country for purposes of section 304 of the Tariff Act 
                of 1930 (19 U.S.C. 1304) or section 334 of the Uruguay 
                Round Agreements Act (19 U.S.C. 3592), as the case may 
                be, shall not be eligible for preferential treatment 
                under paragraph (2) or (3), unless--
                            ``(I) it is an article that is a good of 
                        the Dominican Republic under either such 
                        section 304 or 334; and
                            ``(II) the article, or a good used in the 
                        production of the article, undergoes production 
                        in Haiti.''.

SEC. 403. PERIODIC REPORTS AND MEETINGS ON LABOR OBLIGATIONS AND LABOR 
              CAPACITY-BUILDING PROVISIONS.

    (a) Reports to Congress.--
            (1) In general.--Not later than the end of the 2-year 
        period beginning on the date the Agreement enters into force, 
        and not later than the end of each 2-year period thereafter 
        during the succeeding 14-year period, the President shall 
        report to the Congress on the progress made by the CAFTA-DR 
        countries in--
                    (A) implementing Chapter Sixteen and Annex 16.5 of 
                the Agreement; and
                    (B) implementing the White Paper.
            (2) White paper.--In this section, the term ``White Paper'' 
        means the report of April 2005 of the Working Group of the Vice 
        Ministers Responsible for Trade and Labor in the Countries of 
        Central America and the Dominican Republic entitled ``The Labor 
        Dimension in Central America and the Dominican Republic - 
        Building on Progress: Strengthening Compliance and Enhancing 
        Capacity''.
            (3) Contents of reports.--Each report under paragraph (1) 
        shall include the following:
                    (A) A description of the progress made by the Labor 
                Cooperation and Capacity Building Mechanism established 
                by article 16.5 and Annex 16.5 of the Agreement, and 
                the Labor Affairs Council established by article 16.4 
                of the Agreement, in achieving their stated goals, 
                including a description of the capacity-building 
                projects undertaken, funds received, and results 
                achieved, in each CAFTA-DR country.
                    (B) Recommendations on how the United States can 
                facilitate full implementation of the recommendations 
                contained in the White Paper.
                    (C) A description of the work done by the CAFTA-DR 
                countries with the International Labor Organization to 
                implement the recommendations contained in the White 
                Paper, and the efforts of the CAFTA-DR countries with 
                international organizations, through the Labor 
                Cooperation and Capacity Building Mechanism referred to 
                in subparagraph (A), to advance common commitments 
                regarding labor matters.
                    (D) A summary of public comments received on--
                            (i) capacity-building efforts by the United 
                        States envisaged by article 16.5 and Annex 16.5 
                        of the Agreement;
                            (ii) efforts by the United States to 
                        facilitate full implementation of the White 
                        Paper recommendations; and
                            (iii) the efforts made by the CAFTA-DR 
                        countries to comply with article 16.5 and Annex 
                        16.5 of the Agreement and to fully implement 
                        the White Paper recommendations, including the 
                        progress made by the CAFTA-DR countries in 
                        affording to workers internationally-recognized 
                        worker rights through improved capacity.
            (4) Solicitation of public comments.--The President shall 
        establish a mechanism to solicit public comments for purposes 
        of paragraph (3)(D).
    (b) Periodic Meetings of Secretary of Labor With Labor Ministers of 
CAFTA-DR Countries.--
            (1) Periodic meetings.--The Secretary of Labor should take 
        the necessary steps to meet periodically with the labor 
        ministers of the CAFTA-DR countries to discuss--
                    (A) the operation of the labor provisions of the 
                Agreement;
                    (B) progress on the commitments made by the CAFTA-
                DR countries to implement the recommendations contained 
                in the White Paper;
                    (C) the work of the International Labor 
                Organization in the CAFTA-DR countries, and other 
                cooperative efforts, to afford to workers 
                internationally-recognized worker rights; and
                    (D) such other matters as the Secretary of Labor 
                and the labor ministers consider appropriate.
            (2) Inclusion in biennial reports.--The President shall 
        include in each report under subsection (a), as the President 
        deems appropriate, summaries of the meetings held pursuant to 
        paragraph (1).

            Passed the Senate June 30, 2005.

            Attest:

                                                             Secretary.
109th CONGRESS

  1st Session

                                S. 1307

_______________________________________________________________________

                                 AN ACT

To implement the Dominican Republic-Central America-United States Free 
                            Trade Agreement.

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