S 1642 ISRSCommentsClose CommentsPermalink

Calendar No. 190CommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 1642CommentsClose CommentsPermalink

To implement the United States-Korea Free Trade Agreement.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

October 3, 2011CommentsClose CommentsPermalink

Mr. BAUCUS (for himself, Mr. HATCH, and Mr. MCCONNELL) (by request) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

October 11, 2011CommentsClose CommentsPermalink

Reported by Mr. BAUCUS, without amendmentCommentsClose CommentsPermalink

---

A BILLCommentsClose CommentsPermalink

To implement the United States-Korea Free Trade Agreement.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

(a) Short Title- This Act may be cited as the ‘United States-Korea Free Trade Agreement Implementation Act’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title.CommentsClose CommentsPermalink





Sec. 2. Purposes.CommentsClose CommentsPermalink





Sec. 3. Definitions.CommentsClose CommentsPermalink

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the Agreement.CommentsClose CommentsPermalink





Sec. 102. Relationship of the Agreement to United States and State law.CommentsClose CommentsPermalink





Sec. 103. Implementing actions in anticipation of entry into force and initial regulations.CommentsClose CommentsPermalink





Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed actions.CommentsClose CommentsPermalink





Sec. 105. Administration of dispute settlement proceedings.CommentsClose CommentsPermalink





Sec. 106. Arbitration of claims.CommentsClose CommentsPermalink





Sec. 107. Effective dates; effect of termination.CommentsClose CommentsPermalink

TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.CommentsClose CommentsPermalink





Sec. 202. Rules of origin.CommentsClose CommentsPermalink





Sec. 203. Customs user fees.CommentsClose CommentsPermalink





Sec. 204. Disclosure of incorrect information; false certifications of origin; denial of preferential tariff treatment.CommentsClose CommentsPermalink





Sec. 205. Reliquidation of entries.CommentsClose CommentsPermalink





Sec. 206. Recordkeeping requirements.CommentsClose CommentsPermalink





Sec. 207. Enforcement relating to trade in textile or apparel goods.CommentsClose CommentsPermalink





Sec. 208. Regulations.CommentsClose CommentsPermalink

TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.CommentsClose CommentsPermalink

Subtitle A--Relief From Imports Benefitting From the Agreement

Sec. 311. Commencing of action for relief.CommentsClose CommentsPermalink





Sec. 312. Commission action on petition.CommentsClose CommentsPermalink





Sec. 313. Provision of relief.CommentsClose CommentsPermalink





Sec. 314. Termination of relief authority.CommentsClose CommentsPermalink





Sec. 315. Compensation authority.CommentsClose CommentsPermalink





Sec. 316. Confidential business information.CommentsClose CommentsPermalink

Subtitle B--Motor Vehicle Safeguard Measures

Sec. 321. Motor vehicle safeguard measures.CommentsClose CommentsPermalink

Subtitle C--Textile and Apparel Safeguard Measures

Sec. 331. Commencement of action for relief.CommentsClose CommentsPermalink





Sec. 332. Determination and provision of relief.CommentsClose CommentsPermalink





Sec. 333. Period of relief.CommentsClose CommentsPermalink





Sec. 334. Articles exempt from relief.CommentsClose CommentsPermalink





Sec. 335. Rate after termination of import relief.CommentsClose CommentsPermalink





Sec. 336. Termination of relief authority.CommentsClose CommentsPermalink





Sec. 337. Compensation authority.CommentsClose CommentsPermalink





Sec. 338. Confidential business information.CommentsClose CommentsPermalink

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

Sec. 341. Findings and action on Korean articles.CommentsClose CommentsPermalink

TITLE IV--PROCUREMENT

Sec. 401. Eligible products.CommentsClose CommentsPermalink

TITLE V--OFFSETS

Sec. 501. Increase in penalty on paid preparers who fail to comply with earned income tax credit due diligence requirements.CommentsClose CommentsPermalink





Sec. 502. Requirement for prisons located in the United States to provide information for tax administration.CommentsClose CommentsPermalink





Sec. 503. Rate for merchandise processing fees.CommentsClose CommentsPermalink





Sec. 504. Extension of customs user fees.CommentsClose CommentsPermalink





Sec. 505. Time for payment of corporate estimated taxes.CommentsClose CommentsPermalink

SEC. 2. PURPOSES.

The purposes of this Act are--CommentsClose CommentsPermalink





(1) to approve and implement the free trade agreement between the United States and Korea entered into under the authority of section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002 (19 U.S.C. 3803(b));CommentsClose CommentsPermalink





(2) to secure the benefits of the agreement entered into pursuant to an exchange of letters between the United States and the Government of Korea on February 10, 2011;CommentsClose CommentsPermalink





(3) to strengthen and develop economic relations between the United States and Korea for their mutual benefit;CommentsClose CommentsPermalink





(4) to establish free trade between the United States and Korea through the reduction and elimination of barriers to trade in goods and services and to investment; andCommentsClose CommentsPermalink





(5) to lay the foundation for further cooperation to expand and enhance the benefits of the Agreement.CommentsClose CommentsPermalink

SEC. 3. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) AGREEMENT- The term ‘Agreement’ means the United States-Korea Free Trade Agreement approved by Congress under section 101(a)(1).CommentsClose CommentsPermalink





(2) COMMISSION- The term ‘Commission’ means the United States International Trade Commission.CommentsClose CommentsPermalink





(3) HTS- The term ‘HTS’ means the Harmonized Tariff Schedule of the United States.CommentsClose CommentsPermalink





(4) KOREA- The term ‘Korea’ means the Republic of Korea.CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENTCommentsClose CommentsPermalink

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), Congress approves--CommentsClose CommentsPermalink





(1) the United States-Korea Free Trade Agreement entered into on June 30, 2007, with the Government of Korea, and submitted to Congress on October 3, 2011; andCommentsClose CommentsPermalink





(2) the statement of administrative action proposed to implement the Agreement that was submitted to Congress on October 3, 2011.CommentsClose CommentsPermalink





(b) Conditions for Entry Into Force of the Agreement- At such time as the President determines that Korea has taken measures necessary to comply with those provisions of the Agreement that are to take effect on the date on which the Agreement enters into force, the President is authorized to exchange notes with the Government of Korea providing for the entry into force, on or after January 1, 2012, of the Agreement with respect to the United States.CommentsClose CommentsPermalink

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.

(a) Relationship of Agreement to United States Law-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) CONSTRUCTION- Nothing in this Act shall be construed--CommentsClose CommentsPermalink





(A) to amend or modify any law of the United States, orCommentsClose CommentsPermalink





(B) to limit any authority conferred under any law of the United States,CommentsClose CommentsPermalink





unless specifically provided for in this Act.CommentsClose CommentsPermalink





(b) Relationship of Agreement to State Law-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) DEFINITION OF STATE LAW- For purposes of this subsection, the term ‘State law’ includes--CommentsClose CommentsPermalink





(A) any law of a political subdivision of a State; andCommentsClose CommentsPermalink





(B) any State law regulating or taxing the business of insurance.CommentsClose CommentsPermalink





(c) Effect of Agreement With Respect to Private Remedies- No person other than the United States--CommentsClose CommentsPermalink





(1) shall have any cause of action or defense under the Agreement or by virtue of congressional approval thereof; orCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND INITIAL REGULATIONS.

(a) Implementing Actions-CommentsClose CommentsPermalink





(1) PROCLAMATION AUTHORITY- After the date of the enactment of this Act--CommentsClose CommentsPermalink





(A) the President may proclaim such actions, andCommentsClose CommentsPermalink





(B) other appropriate officers of the United States Government may issue such regulations,CommentsClose CommentsPermalink





as may be necessary to ensure that any provision of this Act, or amendment made by this Act, that takes effect on the date on which the Agreement enters into force is appropriately implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date on which the Agreement enters into force.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(3) WAIVER OF 15-DAY RESTRICTION- The 15-day restriction contained in paragraph (2) on the taking effect of proclaimed actions is waived to the extent that the application of such restriction would prevent the taking effect on the date on which the Agreement enters into force of any action proclaimed under this section.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) the President has obtained advice regarding the proposed action from--CommentsClose CommentsPermalink





(A) the appropriate advisory committees established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155); andCommentsClose CommentsPermalink





(B) the Commission;CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) the action proposed to be proclaimed and the reasons therefor; andCommentsClose CommentsPermalink





(B) the advice obtained under paragraph (1);CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(4) the President has consulted with the committees referred to in paragraph (2) regarding the proposed action during the period referred to in paragraph (3).CommentsClose CommentsPermalink

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 22 of the Agreement. The office shall not be considered to be an agency for purposes of section 552 of title 5, United States Code.CommentsClose CommentsPermalink





(b) Authorization of Appropriations- There are authorized to be appropriated for each fiscal year after fiscal year 2011 to the Department of Commerce up to $750,000 for the establishment and operations of the office established or designated under subsection (a) and for the payment of the United States share of the expenses of panels established under chapter 22 of the Agreement.CommentsClose CommentsPermalink

SEC. 106. ARBITRATION OF CLAIMS.

The United States is authorized to resolve any claim against the United States covered by article 11.16.1(a)(i)(C) or article 11.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State Dispute Settlement procedures set forth in section B of chapter 11 of the Agreement.CommentsClose CommentsPermalink

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

(a) Effective Dates- Except as provided in subsection (b), this Act and the amendments made by this Act take effect on the date on which the Agreement enters into force.CommentsClose CommentsPermalink





(b) Exceptions-CommentsClose CommentsPermalink





(1) IN GENERAL- Sections 1 through 3, section 207(g), this title, and title V take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) CERTAIN AMENDATORY PROVISIONS- The amendments made by sections 203, 204, 206, and 401 of this Act take effect on the date of the enactment of this Act and apply with respect to Korea on the date on which the Agreement enters into force.CommentsClose CommentsPermalink





(c) Termination of the Agreement- On the date on which the Agreement terminates, this Act (other than this subsection and title V) and the amendments made by this Act (other than the amendments made by title V) shall cease to have effect.CommentsClose CommentsPermalink

TITLE II--CUSTOMS PROVISIONSCommentsClose CommentsPermalink

SEC. 201. TARIFF MODIFICATIONS.

(a) Tariff Modifications Provided for in the Agreement- The President may proclaim--CommentsClose CommentsPermalink





(1) such modifications or continuation of any duty,CommentsClose CommentsPermalink





(2) such continuation of duty-free or excise treatment, orCommentsClose CommentsPermalink





(3) such additional duties,CommentsClose CommentsPermalink





as the President determines to be necessary or appropriate to carry out or apply articles 2.3, 2.5, and 2.6, and Annex 2-B, Annex 4-B, and Annex 22-A, of the Agreement.CommentsClose CommentsPermalink





(b) Other Tariff Modifications- Subject to the consultation and layover provisions of section 104, the President may proclaim--CommentsClose CommentsPermalink





(1) such modifications or continuation of any duty,CommentsClose CommentsPermalink





(2) such modifications as the United States may agree to with Korea regarding the staging of any duty treatment set forth in Annex 2-B of the Agreement,CommentsClose CommentsPermalink





(3) such continuation of duty-free or excise treatment, orCommentsClose CommentsPermalink





(4) such additional duties,CommentsClose CommentsPermalink





as the President determines to be necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to Korea provided for by the Agreement.CommentsClose CommentsPermalink





(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 2-B of the Agreement is a specific or compound rate of duty, the President may substitute for the base rate an ad valorem rate that the President determines to be equivalent to the base rate.CommentsClose CommentsPermalink





(d) Tariff Treatment of Motor Vehicles- The President may proclaim the following tariff treatment with respect to the following motor vehicles of Korea:CommentsClose CommentsPermalink





(1) CERTAIN PASSENGER CARS- In the case of originating goods of Korea classifiable under subheading 8703.10.10, 8703.10.50, 8703.21.00, 8703.22.00, 8703.23.00, 8703.24.00, 8703.31.00, 8703.32.00, or 8703.33.00 of the HTS that are entered, or withdrawn from warehouse for consumption--CommentsClose CommentsPermalink





(A) the rate of duty for such goods shall be 2.5 percent for year 1 of the Agreement through year 4 of the Agreement; andCommentsClose CommentsPermalink





(B) such goods shall be free of duty for each year thereafter.CommentsClose CommentsPermalink





(2) ELECTRIC MOTOR VEHICLES- In the case of originating goods of Korea classifiable under subheading 8703.90.00 of the HTS that are entered, or withdrawn from warehouse for consumption--CommentsClose CommentsPermalink





(A) the rate of duty for such goods shall be--CommentsClose CommentsPermalink





(i) 2.0 percent for year 1 of the Agreement;CommentsClose CommentsPermalink





(ii) 1.5 percent for year 2 of the Agreement;CommentsClose CommentsPermalink





(iii) 1.0 percent for year 3 of the Agreement; andCommentsClose CommentsPermalink





(iv) 0.5 percent for year 4 of the Agreement; andCommentsClose CommentsPermalink





(B) such goods shall be free of duty for each year thereafter.CommentsClose CommentsPermalink





(3) CERTAIN TRUCKS- In the case of originating goods of Korea classifiable under subheading 8704.21.00, 8704.22.50, 8704.23.00, 8704.31.00, 8704.32.00, or 8704.90.00 of the HTS that are entered, or withdrawn from warehouse for consumption--CommentsClose CommentsPermalink





(A) the rate of duty for such goods shall be--CommentsClose CommentsPermalink





(i) 25 percent for year 1 of the Agreement through year 7 of the Agreement;CommentsClose CommentsPermalink





(ii) 16.6 percent for year 8 of the Agreement; andCommentsClose CommentsPermalink





(iii) 8.3 percent for year 9 of the Agreement; andCommentsClose CommentsPermalink





(B) such goods shall be free of duty for each year thereafter.CommentsClose CommentsPermalink





(4) DEFINITIONS- In this subsection--CommentsClose CommentsPermalink





(A) the term ‘year 1 of the Agreement’ means the period beginning on the date, in a calendar year, on which the Agreement enters into force and ending on December 31 of that calendar year; andCommentsClose CommentsPermalink





(B) the terms ‘year 2 of the Agreement’, ‘year 3 of the Agreement’, ‘year 4 of the Agreement’, ‘year 5 of the Agreement’, ‘year 6 of the Agreement’, ‘year 7 of the Agreement’, ‘year 8 of the Agreement’, and ‘year 9 of the Agreement’ mean the second, third, fourth, fifth, sixth, seventh, eighth, and ninth calendar years, respectively, in which the Agreement is in force.CommentsClose CommentsPermalink

SEC. 202. RULES OF ORIGIN.

(a) Application and Interpretation- In this section:CommentsClose CommentsPermalink





(1) TARIFF CLASSIFICATION- The basis for any tariff classification is the HTS.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(3) COST OR VALUE- Any cost or value referred to in this section shall be recorded and maintained in accordance with the generally accepted accounting principles applicable in the territory of the country in which the good is produced (whether Korea or the United States).CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) the good is a good wholly obtained or produced entirely in the territory of Korea, the United States, or both;CommentsClose CommentsPermalink





(2) the good--CommentsClose CommentsPermalink





(A) is produced entirely in the territory of Korea, the United States, or both, and--CommentsClose CommentsPermalink





(i) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in Annex 4-A or Annex 6-A of the Agreement; orCommentsClose CommentsPermalink





(ii) the good otherwise satisfies any applicable regional value-content or other requirements specified in Annex 4-A or Annex 6-A of the Agreement; andCommentsClose CommentsPermalink





(B) satisfies all other applicable requirements of this section; orCommentsClose CommentsPermalink





(3) the good is produced entirely in the territory of Korea, the United States, or both, exclusively from materials described in paragraph (1) or (2).CommentsClose CommentsPermalink





(c) Regional Value-content-CommentsClose CommentsPermalink





(1) IN GENERAL- For purposes of subsection (b)(2), the regional value-content of a good referred to in Annex 6-A of the Agreement, except for goods to which paragraph (4) applies, shall be calculated by the importer, exporter, or producer of the good, on the basis of the build-down method described in paragraph (2) or the build-up method described in paragraph (3).CommentsClose CommentsPermalink





(2) BUILD-DOWN METHOD-CommentsClose CommentsPermalink





(A) IN GENERAL- The regional value-content of a good may be calculated on the basis of the following build-down method:CommentsClose CommentsPermalink

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CommentsClose CommentsPermalink

(B) DEFINITIONS- In subparagraph (A):CommentsClose CommentsPermalink





(i) RVC- The term ‘RVC’ means the regional value-content of the good, expressed as a percentage.CommentsClose CommentsPermalink





(ii) AV- The term ‘AV’ means the adjusted value of the good.CommentsClose CommentsPermalink





(iii) VNM- The term ‘VNM’ means the value of nonoriginating materials, other than indirect 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.CommentsClose CommentsPermalink





(3) BUILD-UP METHOD-CommentsClose CommentsPermalink





(A) IN GENERAL- The regional value-content of a good may be calculated on the basis of the following build-up method:CommentsClose CommentsPermalink

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CommentsClose CommentsPermalink

(B) DEFINITIONS- In subparagraph (A):CommentsClose CommentsPermalink





(i) RVC- The term ‘RVC’ means the regional value-content of the good, expressed as a percentage.CommentsClose CommentsPermalink





(ii) AV- The term ‘AV’ means the adjusted value of the good.CommentsClose CommentsPermalink





(iii) VOM- The term ‘VOM’ means the value of originating materials, other than indirect materials, that are acquired or self-produced, and used by the producer in the production of the good.CommentsClose CommentsPermalink





(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE GOODS-CommentsClose CommentsPermalink





(A) IN GENERAL- For purposes of subsection (b)(2), the regional value-content of an automotive good referred to in Annex 6-A of the Agreement may be calculated by the importer, exporter, or producer of the good on the basis of the build-down method described in paragraph (2), the build-up method described in paragraph (3), or the following net cost method:CommentsClose CommentsPermalink

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(B) DEFINITIONS- In subparagraph (A):CommentsClose CommentsPermalink





(i) AUTOMOTIVE GOOD- The term ‘automotive good’ means a good provided for in any of subheadings 8407.31 through 8407.34, subheading 8408.20, heading 8409, or any of headings 8701 through 8708.CommentsClose CommentsPermalink





(ii) RVC- The term ‘RVC’ means the regional value-content of the automotive good, expressed as a percentage.CommentsClose CommentsPermalink





(iii) NC- The term ‘NC’ means the net cost of the automotive good.CommentsClose CommentsPermalink





(iv) VNM- The term ‘VNM’ means the value of nonoriginating materials, other than indirect 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.CommentsClose CommentsPermalink





(C) MOTOR VEHICLES-CommentsClose CommentsPermalink





(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 net cost formula contained in subparagraph (A), over the producer’s fiscal year--CommentsClose CommentsPermalink





(I) with respect to all motor vehicles in any one of the categories described in clause (ii); orCommentsClose CommentsPermalink





(II) with respect to all motor vehicles in any such category that are exported to the territory of Korea or the United States.CommentsClose CommentsPermalink





(ii) CATEGORIES- A category is described in this clause if it--CommentsClose CommentsPermalink





(I) is the same model line of motor vehicles, is in the same class of motor vehicles, and is produced in the same plant in the territory of Korea or the United States, as the good described in clause (i) for which regional value-content is being calculated;CommentsClose CommentsPermalink





(II) is the same class of motor vehicles, and is produced in the same plant in the territory of Korea or the United States, as the good described in clause (i) for which regional value-content is being calculated; orCommentsClose CommentsPermalink





(III) is the same model line of motor vehicles produced in the territory of Korea or the United States as the good described in clause (i) for which regional value-content is being calculated.CommentsClose CommentsPermalink





(D) OTHER AUTOMOTIVE GOODS- For purposes of determining the regional value-content under subparagraph (A) for automotive materials provided for in any of subheadings 8407.31 through 8407.34, in subheading 8408.20, or in heading 8409, 8706, 8707, or 8708, that are produced in the same plant, an importer, exporter, or producer may--CommentsClose CommentsPermalink





(i) average the amounts calculated under the net cost formula contained in subparagraph (A) over--CommentsClose CommentsPermalink





(I) the fiscal year of the motor vehicle producer to whom the automotive goods are sold,CommentsClose CommentsPermalink





(II) any quarter or month, orCommentsClose CommentsPermalink





(III) the fiscal year of the producer of such goods,CommentsClose CommentsPermalink





if the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation;CommentsClose CommentsPermalink





(ii) determine the average referred to in clause (i) separately for such goods sold to 1 or more motor vehicle producers; orCommentsClose CommentsPermalink





(iii) make a separate determination under clause (i) or (ii) for such goods that are exported to the territory of Korea or the United States.CommentsClose CommentsPermalink





(E) CALCULATING NET COST- The importer, exporter, or producer of an automotive good shall, consistent with the provisions regarding allocation of costs provided for in generally accepted accounting principles, determine the net cost of the automotive good under subparagraph (B) by--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; orCommentsClose CommentsPermalink





(iii) reasonably allocating each cost that forms part of the total cost incurred with respect to the automotive good so that the aggregate of these costs does not include any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, or nonallowable interest costs.CommentsClose CommentsPermalink





(d) Value of Materials-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) in the case of a material that is imported by the producer of the good, the adjusted value of the material;CommentsClose CommentsPermalink





(B) in the case of a material acquired in the territory in which the good is produced, the value, determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretive notes, of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 referred to in section 101(d)(8) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(8)), as set forth in regulations promulgated by the Secretary of the Treasury providing for the application of such Articles in the absence of an importation by the producer; orCommentsClose CommentsPermalink





(C) in the case of a material that is self-produced, the sum of--CommentsClose CommentsPermalink





(i) all expenses incurred in the production of the material, including general expenses; andCommentsClose CommentsPermalink





(ii) an amount for profit equivalent to the profit added in the normal course of trade.CommentsClose CommentsPermalink





(2) FURTHER ADJUSTMENTS TO THE VALUE OF MATERIALS-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Korea, the United States, or both, to the location of the producer.CommentsClose CommentsPermalink





(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Korea, the United States, or both, other than duties or taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or between the territory of Korea, the United States, or both, to the location of the producer.CommentsClose CommentsPermalink





(ii) Duties, taxes, and customs brokerage fees on the material paid in the territory of Korea, the United States, or both, other than duties or taxes that are waived, refunded, refundable, or otherwise recoverable, including credit against duty or tax paid or payable.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(iv) The cost of originating materials used in the production of the nonoriginating material in the territory of Korea, the United States, or both.CommentsClose CommentsPermalink





(e) Accumulation-CommentsClose CommentsPermalink





(1) ORIGINATING MATERIALS USED IN PRODUCTION OF GOODS OF THE OTHER COUNTRY- Originating materials from the territory of Korea or the United States that are used in the production of a good in the territory of the other country shall be considered to originate in the territory of such other country.CommentsClose CommentsPermalink





(2) MULTIPLE PRODUCERS- A good that is produced in the territory of Korea, the United States, or both, by 1 or more producers, is an originating good if the good satisfies the requirements of subsection (b) and all other applicable requirements of this section.CommentsClose CommentsPermalink





(f) De Minimis Amounts of Nonoriginating Materials-CommentsClose CommentsPermalink





(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 6-A of the Agreement is an originating good if--CommentsClose CommentsPermalink





(A) the value of all nonoriginating materials used in the production of the good that do not undergo the applicable change in tariff classification (set forth in Annex 6-A of the Agreement) does not exceed 10 percent of the adjusted value of the good;CommentsClose CommentsPermalink





(B) the good meets all other applicable requirements of this section; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) EXCEPTIONS- Paragraph (1) does not apply to the following:CommentsClose CommentsPermalink





(A) A nonoriginating material provided for in chapter 3 that is used in the production of a good provided for in chapter 3.CommentsClose CommentsPermalink





(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 or 2106.90, that is used in the production of a good provided for in chapter 4.CommentsClose CommentsPermalink





(C) A nonoriginating material provided for in chapter 4, or a nonoriginating dairy preparation containing over 10 percent by weight of milk solids provided for in subheading 1901.90, that is used in the production of any of the following goods:CommentsClose CommentsPermalink





(i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10.CommentsClose CommentsPermalink





(ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20.CommentsClose CommentsPermalink





(iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90.CommentsClose CommentsPermalink





(iv) Goods provided for in heading 2105.CommentsClose CommentsPermalink





(v) Beverages containing milk provided for in subheading 2202.90.CommentsClose CommentsPermalink





(vi) Animal feeds containing over 10 percent by weight of milk solids provided for in subheading 2309.90.CommentsClose CommentsPermalink





(D) A nonoriginating material provided for in chapter 7 that is used in the production of a good provided for in subheading 0703.10, 0703.20, 0709.59, 0709.60, 0711.90, 0712.20, 0714.20, or any of subheadings 0710.21 through 0710.80 or 0712.39 through 0713.10.CommentsClose CommentsPermalink





(E) A nonoriginating material provided for in heading 1006, or a nonoriginating rice product provided for in chapter 11 that is used in the production of a good provided for in heading 1006, 1102, 1103, 1104, or subheading 1901.20 or 1901.90.CommentsClose CommentsPermalink





(F) A nonoriginating material provided for in heading 0805, or any of subheadings 2009.11 through 2009.39, that is used in the production of a good provided for in any of subheadings 2009.11 through 2009.39, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, concentrated or unconcentrated, provided for in subheading 2106.90 or 2202.90.CommentsClose CommentsPermalink





(G) Nonoriginating peaches, pears, or apricots provided for in chapter 8 or 20 that are used in the production of a good provided for in heading 2008.CommentsClose CommentsPermalink





(H) A nonoriginating material provided for in chapter 15 that is used in the production of a good provided for in any of headings 1501 through 1508, or heading 1512, 1514, or 1515.CommentsClose CommentsPermalink





(I) A nonoriginating material provided for in heading 1701 that is used in the production of a good provided for in any of headings 1701 through 1703.CommentsClose CommentsPermalink





(J) A nonoriginating material provided for in chapter 17 that is used in the production of a good provided for in subheading 1806.10.CommentsClose CommentsPermalink





(K) Except as provided in subparagraphs (A) through (J) and Annex 6-A of the Agreement, a nonoriginating material used in the production of a good provided for in any of chapters 1 through 24, unless the nonoriginating material is provided for in a different subheading than the good for which origin is being determined under this section.CommentsClose CommentsPermalink





(3) TEXTILE OR APPAREL GOODS-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in subparagraph (B), a textile or apparel good that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification, set forth in Annex 4-A of the Agreement, shall be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than 7 percent of the total weight of that component.CommentsClose CommentsPermalink





(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 and finished in the territory of Korea, the United States, or both.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(g) Fungible Goods and Materials-CommentsClose CommentsPermalink





(1) IN GENERAL-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) INVENTORY MANAGEMENT METHOD- In this subsection, the term ‘inventory management method’ means--CommentsClose CommentsPermalink





(i) averaging;CommentsClose CommentsPermalink





(ii) ‘last-in, first-out’;CommentsClose CommentsPermalink





(iii) ‘first-in, first-out’; orCommentsClose CommentsPermalink





(iv) any other method--CommentsClose CommentsPermalink





(I) recognized in the generally accepted accounting principles of the country in which the production is performed (whether Korea or the United States); orCommentsClose CommentsPermalink





(II) otherwise accepted by that country.CommentsClose CommentsPermalink





(2) ELECTION OF INVENTORY METHOD- A person selecting an inventory management method under paragraph (1) for a particular fungible good or fungible material shall continue to use that method for that fungible good or fungible material throughout the fiscal year of such person.CommentsClose CommentsPermalink





(h) Accessories, Spare Parts, or Tools-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) be treated as originating goods if the good is an originating good; andCommentsClose CommentsPermalink





(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 forth in Annex 6-A of the Agreement.CommentsClose CommentsPermalink





(2) CONDITIONS- Paragraph (1) shall apply only if--CommentsClose CommentsPermalink





(A) the accessories, spare parts, or tools are classified with and not invoiced separately from the good; andCommentsClose CommentsPermalink





(B) the quantities and value of the accessories, spare parts, or tools are customary for the good.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(i) Packaging Materials and Containers for Retail Sale- Packaging materials and containers in which a good is packaged for retail sale, if classified with the good, shall be disregarded in determining whether all the nonoriginating materials used in the production of the good undergo the applicable change in tariff classification set forth in Annex 4-A or Annex 6-A of the Agreement, and, if the good is subject to a regional value-content requirement, the value of such packaging materials and containers shall be taken into account as originating or nonoriginating materials, as the case may be, in calculating the regional value-content of the good.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(k) Indirect Materials- An indirect material shall be disregarded in determining whether a good is an originating good.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) undergoes further production or any other operation outside the territory of Korea or the United States, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of Korea or the United States; orCommentsClose CommentsPermalink





(2) does not remain under the control of customs authorities in the territory of a country other than Korea or the United States.CommentsClose CommentsPermalink





(m) Goods Classifiable as Goods Put up in Sets- Notwithstanding the rules set forth in Annex 4-A and Annex 6-A of the Agreement, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3 of the HTS shall not be considered to be originating goods unless--CommentsClose CommentsPermalink





(1) each of the goods in the set is an originating good; orCommentsClose CommentsPermalink





(2) the total value of the nonoriginating goods in the set does not exceed--CommentsClose CommentsPermalink





(A) in the case of textile or apparel goods, 10 percent of the adjusted value of the set; orCommentsClose CommentsPermalink





(B) in the case of goods, other than textile or apparel goods, 15 percent of the adjusted value of the set.CommentsClose CommentsPermalink





(n) Definitions- In this section:CommentsClose CommentsPermalink





(1) ADJUSTED VALUE- The term ‘adjusted value’ means the value determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretive notes, of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 referred to in section 101(d)(8) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(8)), adjusted, if necessary, to exclude any costs, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise from the country of exportation to the place of importation.CommentsClose CommentsPermalink





(2) CLASS OF MOTOR VEHICLES- The term ‘class of motor vehicles’ means any one of the following categories of motor vehicles:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) Motor vehicles provided for in subheading 8701.10 or any of subheadings 8701.30 through 8701.90.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(D) Motor vehicles provided for in any of subheadings 8703.21 through 8703.90.CommentsClose CommentsPermalink





(3) FUNGIBLE GOOD OR FUNGIBLE MATERIAL- The term ‘fungible good’ or ‘fungible material’ means a good or material, as the case may be, that is interchangeable with another good or material for commercial purposes and the properties of which are essentially identical to such other good or material.CommentsClose CommentsPermalink





(4) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES- The term ‘generally accepted accounting principles’--CommentsClose CommentsPermalink





(A) means the recognized consensus or substantial authoritative support given in the territory of Korea or the United States, as the case may be, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements; andCommentsClose CommentsPermalink





(B) may encompass broad guidelines for general application as well as detailed standards, practices, and procedures.CommentsClose CommentsPermalink





(5) GOOD WHOLLY OBTAINED OR PRODUCED ENTIRELY IN THE TERRITORY OF KOREA, THE UNITED STATES, OR BOTH- The term ‘good wholly obtained or produced entirely in the territory of Korea, the United States, or both’ means any of the following:CommentsClose CommentsPermalink





(A) Plants and plant products grown, and harvested or gathered, in the territory of Korea, the United States, or both.CommentsClose CommentsPermalink





(B) Live animals born and raised in the territory of Korea, the United States, or both.CommentsClose CommentsPermalink





(C) Goods obtained in the territory of Korea, the United States, or both from live animals.CommentsClose CommentsPermalink





(D) Goods obtained from hunting, trapping, fishing, or aquaculture conducted in the territory of Korea, the United States, or both.CommentsClose CommentsPermalink





(E) Minerals and other natural resources not included in subparagraphs (A) through (D) that are extracted or taken from the territory of Korea, the United States, or both.CommentsClose CommentsPermalink





(F) Fish, shellfish, and other marine life taken from the sea, seabed, or subsoil outside the territory of Korea or the United States by--CommentsClose CommentsPermalink





(i) a vessel that is registered or recorded with Korea and flying the flag of Korea; orCommentsClose CommentsPermalink





(ii) a vessel that is documented under the laws of the United States.CommentsClose CommentsPermalink





(G) Goods produced on board a factory ship from goods referred to in subparagraph (F), if such factory ship--CommentsClose CommentsPermalink





(i) is registered or recorded with Korea and flies the flag of Korea; orCommentsClose CommentsPermalink





(ii) is a vessel that is documented under the laws of the United States.CommentsClose CommentsPermalink





(H)(i) Goods taken by Korea or a person of Korea from the seabed or subsoil outside the territory of Korea, the United States, or both, if Korea has rights to exploit such seabed or subsoil; orCommentsClose CommentsPermalink





(ii) Goods taken by the United States or a person of the United States from the seabed or subsoil outside the territory of the United States, Korea, or both, if the United States has rights to exploit such seabed or subsoil.CommentsClose CommentsPermalink





(I) Goods taken from outer space, if the goods are obtained by Korea or the United States or a person of Korea or the United States and not processed in the territory of a country other than Korea or the United States.CommentsClose CommentsPermalink





(J) Waste and scrap derived from--CommentsClose CommentsPermalink





(i) manufacturing or processing operations in the territory of Korea, the United States, or both; orCommentsClose CommentsPermalink





(ii) used goods collected in the territory of Korea, the United States, or both, if such goods are fit only for the recovery of raw materials.CommentsClose CommentsPermalink





(K) Recovered goods derived in the territory of Korea, the United States, or both, from used goods, and used in the territory of Korea, the United States, or both, in the production of remanufactured goods.CommentsClose CommentsPermalink





(L) Goods, at any stage of production, produced in the territory of Korea, the United States, or both, exclusively from--CommentsClose CommentsPermalink





(i) goods referred to in any of subparagraphs (A) through (J); orCommentsClose CommentsPermalink





(ii) the derivatives of goods referred to in clause (i).CommentsClose CommentsPermalink





(6) IDENTICAL GOODS- The term ‘identical goods’ means goods that are the same in all respects relevant to the rule of origin that qualifies the goods as originating goods.CommentsClose CommentsPermalink





(7) INDIRECT MATERIAL- The term ‘indirect material’ means a good used in the production, testing, or inspection of another good but not physically incorporated into that other good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of another good, including--CommentsClose CommentsPermalink





(A) fuel and energy;CommentsClose CommentsPermalink





(B) tools, dies, and molds;CommentsClose CommentsPermalink





(C) spare parts and materials used in the maintenance of equipment or buildings;CommentsClose CommentsPermalink





(D) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment or buildings;CommentsClose CommentsPermalink





(E) gloves, glasses, footwear, clothing, safety equipment, and supplies;CommentsClose CommentsPermalink





(F) equipment, devices, and supplies used for testing or inspecting the good;CommentsClose CommentsPermalink





(G) catalysts and solvents; andCommentsClose CommentsPermalink





(H) any other good that is not incorporated into the other good but the use of which in the production of the other good can reasonably be demonstrated to be a part of that production.CommentsClose CommentsPermalink





(8) MATERIAL- The term ‘material’ means a good that is used in the production of another good, including a part or an ingredient.CommentsClose CommentsPermalink





(9) MATERIAL THAT IS SELF-PRODUCED- The term ‘material that is self-produced’ means an originating material that is produced by a producer of a good and used in the production of that good.CommentsClose CommentsPermalink





(10) MODEL LINE OF MOTOR VEHICLES- The term ‘model line of motor vehicles’ means a group of motor vehicles having the same platform or model name.CommentsClose CommentsPermalink





(11) 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.CommentsClose CommentsPermalink





(12) 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 country in which the producer is located.CommentsClose CommentsPermalink





(13) NONORIGINATING GOOD OR NONORIGINATING MATERIAL- The term ‘nonoriginating good’ or ‘nonoriginating material’ means a good or material, as the case may be, that does not qualify as originating under this section.CommentsClose CommentsPermalink





(14) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT- The term ‘packing materials and containers for shipment’ means goods used to protect another good during its transportation and does not include the packaging materials and containers in which the other good is packaged for retail sale.CommentsClose CommentsPermalink





(15) PREFERENTIAL TARIFF TREATMENT- The term ‘preferential tariff treatment’ means the customs duty rate, and the treatment under article 2.10.4 of the Agreement, that are applicable to an originating good pursuant to the Agreement.CommentsClose CommentsPermalink





(16) PRODUCER- The term ‘producer’ means a person who engages in the production of a good in the territory of Korea or the United States.CommentsClose CommentsPermalink





(17) PRODUCTION- The term ‘production’ means growing, mining, harvesting, fishing, breeding, raising, trapping, hunting, manufacturing, processing, assembling, or disassembling a good.CommentsClose CommentsPermalink





(18) REASONABLY ALLOCATE- The term ‘reasonably allocate’ means to apportion in a manner that would be appropriate under generally accepted accounting principles.CommentsClose CommentsPermalink





(19) RECOVERED GOODS- The term ‘recovered goods’ means materials in the form of individual parts that are the result of--CommentsClose CommentsPermalink





(A) the disassembly of used goods into individual parts; andCommentsClose CommentsPermalink





(B) the cleaning, inspecting, testing, or other processing that is necessary for improvement to sound working condition of such individual parts.CommentsClose CommentsPermalink





(20) REMANUFACTURED GOOD- The term ‘remanufactured good’ means a good that is classified under chapter 84, 85, 87, or 90 or heading 9402, and that--CommentsClose CommentsPermalink





(A) is entirely or partially comprised of recovered goods; andCommentsClose CommentsPermalink





(B) has a similar life expectancy and enjoys a factory warranty similar to such a good that is new.CommentsClose CommentsPermalink





(21) TOTAL COST-CommentsClose CommentsPermalink





(A) IN GENERAL- The term ‘total cost’--CommentsClose CommentsPermalink





(i) means all product costs, period costs, and other costs for a good incurred in the territory of Korea, the United States, or both; andCommentsClose CommentsPermalink





(ii) does not include profits that are earned by the producer, regardless of whether they are retained by the producer or paid out to other persons as dividends, or taxes paid on those profits, including capital gains taxes.CommentsClose CommentsPermalink





(B) OTHER DEFINITIONS- In this paragraph:CommentsClose CommentsPermalink





(i) PRODUCT COSTS- The term ‘product costs’ means costs that are associated with the production of a good and include the value of materials, direct labor costs, and direct overhead.CommentsClose CommentsPermalink





(ii) PERIOD COSTS- The term ‘period costs’ means costs, other than product costs, that are expensed in the period in which they are incurred, such as selling expenses and general and administrative expenses.CommentsClose CommentsPermalink





(iii) OTHER COSTS- The term ‘other costs’ means all costs recorded on the books of the producer that are not product costs or period costs, such as interest.CommentsClose CommentsPermalink





(22) USED- The term ‘used’ means utilized or consumed in the production of goods.CommentsClose CommentsPermalink





(o) Presidential Proclamation Authority-CommentsClose CommentsPermalink





(1) IN GENERAL- The President is authorized to proclaim, as part of the HTS--CommentsClose CommentsPermalink





(A) the provisions set forth in Annex 4-A and Annex 6-A of the Agreement; andCommentsClose CommentsPermalink





(B) any additional subordinate category that is necessary to carry out this title consistent with the Agreement.CommentsClose CommentsPermalink





(2) MODIFICATIONS-CommentsClose CommentsPermalink





(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-A of the Agreement).CommentsClose CommentsPermalink





(B) ADDITIONAL PROCLAMATIONS- Notwithstanding subparagraph (A), and subject to the consultation and layover provisions of section 104, the President may proclaim--CommentsClose CommentsPermalink





(i) such modifications to the provisions proclaimed under the authority of paragraph (1)(A) as are necessary to implement an agreement with Korea pursuant to article 4.2.5 of the Agreement; andCommentsClose CommentsPermalink





(ii) before the end of the 1-year period beginning on the date on which the Agreement enters into force, modifications to correct any typographical, clerical, or other nonsubstantive technical error regarding the provisions of chapters 50 through 63 (as included in Annex 4-A of the Agreement).CommentsClose CommentsPermalink





(3) FIBERS, YARNS, OR FABRICS NOT AVAILABLE IN COMMERCIAL QUANTITIES IN THE UNITED STATES-CommentsClose CommentsPermalink





(A) IN GENERAL- Notwithstanding paragraph (2)(A), the list of fibers, yarns, and fabrics set forth in the list of the United States in Appendix 4-B-1 of the Agreement may be modified as provided for in this paragraph.CommentsClose CommentsPermalink





(B) DEFINITIONS- In this paragraph:CommentsClose CommentsPermalink





(i) INTERESTED ENTITY- The term ‘interested entity’ means the Government of Korea, a potential or actual purchaser of a textile or apparel good, or a potential or actual supplier of a textile or apparel good.CommentsClose CommentsPermalink





(ii) DAY; DAYS- All references to ‘day’ and ‘days’ exclude Saturdays, Sundays, and legal holidays observed by the Government of the United States.CommentsClose CommentsPermalink





(C) REQUESTS TO ADD FIBERS, YARNS, OR FABRICS-CommentsClose CommentsPermalink





(i) IN GENERAL- An interested entity may request the President to determine that a fiber, yarn, or fabric is not available in commercial quantities in a timely manner in the United States and to add that fiber, yarn, or fabric to the list of the United States in Appendix 4-B-1 of the Agreement.CommentsClose CommentsPermalink





(ii) DETERMINATION- After receiving a request under clause (i), the President may determine whether--CommentsClose CommentsPermalink





(I) the fiber, yarn, or fabric is available in commercial quantities in a timely manner in the United States; orCommentsClose CommentsPermalink





(II) any interested entity objects to the request.CommentsClose CommentsPermalink





(iii) PROCLAMATION AUTHORITY- The President may, within the time periods specified in clause (iv), proclaim that the fiber, yarn, or fabric that is the subject of the request is added to the list of the United States in Appendix 4-B-1 of the Agreement, if the President has determined under clause (ii) that--CommentsClose CommentsPermalink





(I) the fiber, yarn, or fabric is not available in commercial quantities in a timely manner in the United States; orCommentsClose CommentsPermalink





(II) no interested entity has objected to the request.CommentsClose CommentsPermalink





(iv) TIME PERIODS- The time periods within which the President may issue a proclamation under clause (iii) are--CommentsClose CommentsPermalink





(I) not later than 30 days after the date on which a request is submitted under clause (i); orCommentsClose CommentsPermalink





(II) not later than 60 days after the request is submitted, if the President determines, within 30 days after the date on which the request is submitted, that the President does not have sufficient information to make a determination under clause (ii).CommentsClose CommentsPermalink





(v) EFFECTIVE DATE- Notwithstanding section 103(a)(2), a proclamation made under clause (iii) shall take effect on the date on which the text of the proclamation is published in the Federal Register.CommentsClose CommentsPermalink





(D) DEEMED DENIAL OF REQUEST- If, after an interested entity submits a request under subparagraph (C)(i), the President does not, within 30 days of the expiration of the applicable time period specified in subparagraph (C)(iv), make a determination under subparagraph (C)(ii) regarding the request, the request shall be considered to be denied.CommentsClose CommentsPermalink





(E) REQUESTS TO REMOVE FIBERS, YARNS, OR FABRICS-CommentsClose CommentsPermalink





(i) IN GENERAL- An interested entity may request the President to remove from the list of the United States in Appendix 4-B-1 of the Agreement, any fiber, yarn, or fabric that has been added to that list pursuant to subparagraph (C)(iii).CommentsClose CommentsPermalink





(ii) PROCLAMATION AUTHORITY- Not later than 30 days after the date on which a request under clause (i) is submitted, the President may proclaim that the fiber, yarn, or fabric that is the subject of the request is removed from the list of the United States in Appendix 4-B-1 of the Agreement if the President determines that the fiber, yarn, or fabric is available in commercial quantities in a timely manner in the United States.CommentsClose CommentsPermalink





(iii) EFFECTIVE DATE- A proclamation issued under clause (ii) may not take effect earlier than the date that is 6 months after the date on which the text of the proclamation is published in the Federal Register.CommentsClose CommentsPermalink





(F) PROCEDURES- The President shall establish procedures--CommentsClose CommentsPermalink





(i) governing the submission of a request under subparagraphs (C) and (E); andCommentsClose CommentsPermalink





(ii) providing an opportunity for interested entities to submit comments and supporting evidence before the President makes a determination under subparagraph (C)(ii) or (E)(ii).CommentsClose CommentsPermalink

SEC. 203. 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 (18) the following:CommentsClose CommentsPermalink





‘(19) No fee may be charged under subsection (a) (9) or (10) with respect to goods that qualify as originating goods under section 202 of the United States-Korea Free Trade Agreement 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.’.CommentsClose CommentsPermalink

SEC. 204. 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--CommentsClose CommentsPermalink





(1) in subsection (c)--CommentsClose CommentsPermalink





(A) by redesignating paragraph (11) as paragraph (12); andCommentsClose CommentsPermalink





(B) by inserting after paragraph (10) the following new paragraph:CommentsClose CommentsPermalink





‘(11) PRIOR DISCLOSURE REGARDING CLAIMS UNDER THE UNITED STATES-KOREA FREE TRADE AGREEMENT- An importer shall not be subject to penalties under subsection (a) for making an incorrect claim that a good qualifies as an originating good under section 202 of the United States-Korea Free Trade 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 with respect to that good.’; andCommentsClose CommentsPermalink





(2) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(j) False Certifications of Origin Under the United States-Korea Free Trade Agreement-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Subject to paragraph (2), it is unlawful for any person to certify falsely, by fraud, gross negligence, or negligence, in a KFTA certification of origin (as defined in section 508 of this Act) that a good exported from the United States qualifies as an originating good under the rules of origin provided for in section 202 of the United States-Korea Free Trade Agreement Implementation Act. The procedures and penalties of this section that apply to a violation of subsection (a) also apply to a violation of this subsection.CommentsClose CommentsPermalink





‘(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 KFTA certification of origin has reason to believe that such certification contains or is based on incorrect information, the exporter or producer voluntarily provides written notice of such incorrect information to every person to whom the certification was issued.CommentsClose CommentsPermalink





‘(3) EXCEPTION- A person shall not be considered to have violated paragraph (1) if--CommentsClose CommentsPermalink





‘(A) the information was correct at the time it was provided in a KFTA certification of origin but was later rendered incorrect due to a change in circumstances; andCommentsClose CommentsPermalink





‘(B) the person promptly and voluntarily provides written notice of the change in circumstances to all persons to whom the person provided the certification.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(j) Denial of Preferential Tariff Treatment Under the United States-Korea Free Trade Agreement- If U.S. Customs and Border Protection or U.S. Immigration and Customs Enforcement of the Department of Homeland Security finds indications of a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the rules of origin provided for in section 202 of the United States-Korea Free Trade Agreement Implementation Act, U.S. Customs and Border Protection, in accordance with regulations issued by the Secretary of the Treasury, may suspend preferential tariff treatment under the United States-Korea Free Trade Agreement Implementation Act to entries of identical goods covered by subsequent representations by that importer, exporter, or producer until U.S. Customs and Border Protection determines that representations of that person are in conformity with such section 202.’.CommentsClose CommentsPermalink

SEC. 205. RELIQUIDATION OF ENTRIES.

Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 1520(d)) is amended in the matter preceding paragraph (1)--CommentsClose CommentsPermalink





(1) by striking ‘or’; andCommentsClose CommentsPermalink





(2) by striking ‘for which’ and inserting ‘, or section 202 of the United States-Korea Free Trade Agreement Implementation Act for which’.CommentsClose CommentsPermalink

SEC. 206. RECORDKEEPING REQUIREMENTS.

Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is amended--CommentsClose CommentsPermalink





(1) by redesignating subsection (i) as subsection (j);CommentsClose CommentsPermalink





(2) by inserting after subsection (h) the following new subsection:CommentsClose CommentsPermalink





‘(i) Certifications of Origin for Goods Exported Under the United States-Korea Free Trade Agreement-CommentsClose CommentsPermalink





‘(1) DEFINITIONS- In this subsection:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) the purchase, cost, and value of, and payment for, the good;CommentsClose CommentsPermalink





‘(ii) the purchase, cost, and value of, and payment for, all materials, including indirect materials, used in the production of the good; andCommentsClose CommentsPermalink





‘(iii) the production of the good in the form in which it was exported.CommentsClose CommentsPermalink





‘(B) KFTA CERTIFICATION OF ORIGIN- The term ‘KFTA certification of origin’ means the certification established under article 6.15 of the United States-Korea Free Trade Agreement that a good qualifies as an originating good under such Agreement.CommentsClose CommentsPermalink





‘(2) EXPORTS TO KOREA- Any person who completes and issues a KFTA certification of origin for a good exported from the United States shall make, keep, and, pursuant to rules and regulations promulgated by the Secretary of the Treasury, render for examination and inspection all records and supporting documents related to the origin of the good (including the certification or copies thereof).CommentsClose CommentsPermalink





‘(3) RETENTION PERIOD- The person who issues a KFTA certification of origin shall keep the records and supporting documents relating to that certification of origin for a period of at least 5 years after the date on which the certification is issued.’; andCommentsClose CommentsPermalink





(3) in subsection (j), as so redesignated, by striking ‘(g), or (h)’ and inserting ‘(g), (h), or (i)’.CommentsClose CommentsPermalink

SEC. 207. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL GOODS.

(a) Action During Verification-CommentsClose CommentsPermalink





(1) IN GENERAL- If the Secretary of the Treasury requests the Government of Korea to conduct a verification pursuant to article 4.3 of the Agreement for purposes of making a determination under paragraph (2), the President may direct the Secretary to take appropriate action described in subsection (b) while the verification is being conducted.CommentsClose CommentsPermalink





(2) DETERMINATION- A determination under this paragraph is a determination of the Secretary that--CommentsClose CommentsPermalink





(A) an exporter or producer in Korea is complying with applicable customs laws, regulations, procedures, requirements, and practices affecting trade in textile or apparel goods; orCommentsClose CommentsPermalink





(B) a claim that a textile or apparel good exported or produced by such exporter or producer--CommentsClose CommentsPermalink





(i) qualifies as an originating good under section 202, orCommentsClose CommentsPermalink





(ii) is a good of Korea,CommentsClose CommentsPermalink





is accurate.CommentsClose CommentsPermalink





(b) Appropriate Action Described- Appropriate action under subsection (a)(1) includes--CommentsClose CommentsPermalink





(1) suspension of liquidation of the entry of any textile or apparel good exported or produced by the person that is the subject of a verification under subsection (a)(1) regarding compliance described in subsection (a)(2)(A), in a case in which the request for verification was based on a reasonable suspicion of unlawful activity related to such goods; andCommentsClose CommentsPermalink





(2) suspension of liquidation of the entry of a textile or apparel good for which a claim has been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection (a)(2)(B).CommentsClose CommentsPermalink





(c) Action When Information Is Insufficient- If the Secretary of the Treasury determines that the information obtained within 12 months after making a request for a verification under subsection (a)(1) is insufficient to make a determination under subsection (a)(2), the President may direct the Secretary to take appropriate action described in subsection (d) until such time as the Secretary receives information sufficient to make the determination under subsection (a)(2) or until such earlier date as the President may direct.CommentsClose CommentsPermalink





(d) Appropriate Action Described- Appropriate action under subsection (c) includes--CommentsClose CommentsPermalink





(1) denial of preferential tariff treatment under the Agreement with respect to--CommentsClose CommentsPermalink





(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); orCommentsClose CommentsPermalink





(B) the textile or apparel good for which a claim has been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection (a)(2)(B); andCommentsClose CommentsPermalink





(2) denial of entry into the United States of--CommentsClose CommentsPermalink





(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); orCommentsClose CommentsPermalink





(B) a textile or apparel good for which a claim has been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection (a)(2)(B).CommentsClose CommentsPermalink





(e) Publication of Name of Person- In accordance with article 4.3.11 of the Agreement, the Secretary of the Treasury may publish the name of any person that the Secretary has determined--CommentsClose CommentsPermalink





(1) is engaged in circumvention of applicable laws, regulations, or procedures affecting trade in textile or apparel goods; orCommentsClose CommentsPermalink





(2) has failed to demonstrate that it produces, or is capable of producing, textile or apparel goods.CommentsClose CommentsPermalink





(f) Certificate of Eligibility- The Commissioner responsible for U.S. Customs and Border Protection of the Department of Homeland Security may require an importer to submit at the time the importer files a claim for preferential tariff treatment under Annex 4-B of the Agreement a certificate of eligibility, properly completed and signed by an authorized official of the Government of Korea.CommentsClose CommentsPermalink





(g) Verifications in the United States- If the government of a country that is a party to a free trade agreement with the United States makes a request for a verification pursuant to that agreement, the Secretary of the Treasury may request a verification of the production of any textile or apparel good in order to assist that government in determining whether--CommentsClose CommentsPermalink





(1) a claim of origin under the agreement for a textile or apparel good is accurate; orCommentsClose CommentsPermalink





(2) an exporter, producer, or other enterprise located in the United States involved in the movement of textile or apparel goods from the United States to the territory of the requesting government is complying with applicable customs laws, regulations, and procedures regarding trade in textile or apparel goods.CommentsClose CommentsPermalink

SEC. 208. REGULATIONS.

The Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out--CommentsClose CommentsPermalink





(1) subsections (a) through (n) of section 202;CommentsClose CommentsPermalink





(2) the amendment made by section 203; andCommentsClose CommentsPermalink





(3) any proclamation issued under section 202(o).CommentsClose CommentsPermalink

TITLE III--RELIEF FROM IMPORTSCommentsClose CommentsPermalink

SEC. 301. DEFINITIONS.

In this title:CommentsClose CommentsPermalink





(1) KOREAN ARTICLE- The term ‘Korean article’ means an article that qualifies as an originating good under section 202(b).CommentsClose CommentsPermalink





(2) KOREAN MOTOR VEHICLE ARTICLE- The term ‘Korean motor vehicle article’ means a good provided for in heading 8703 or 8704 of the HTS that qualifies as an originating good under section 202(b).CommentsClose CommentsPermalink





(3) KOREAN TEXTILE OR APPAREL ARTICLE- The term ‘Korean textile or apparel article’ means a textile or apparel good (as defined in section 3(5)) that is a Korean article.CommentsClose CommentsPermalink

Subtitle A--Relief From Imports Benefitting From the AgreementCommentsClose CommentsPermalink

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

(a) Filing of Petition-CommentsClose CommentsPermalink





(1) IN GENERAL- A petition requesting action under this subtitle for the purpose of adjusting to the obligations of the United States under the Agreement may be filed with the Commission by an entity, including a trade association, firm, certified or recognized union, or group of workers, that is representative of an industry. The Commission shall transmit a copy of any petition filed under this subsection to the United States Trade Representative.CommentsClose CommentsPermalink





(2) PROVISIONAL RELIEF- An entity filing a petition under this subsection may request that provisional relief be provided as if the petition had been filed under section 202(a) of the Trade Act of 1974 (19 U.S.C. 2252(a)).CommentsClose CommentsPermalink





(3) CRITICAL CIRCUMSTANCES- Any allegation that critical circumstances exist shall be included in the petition.CommentsClose CommentsPermalink





(b) Investigation and Determination- Upon the filing of a petition under subsection (a), the Commission, unless subsection (d) applies, shall promptly initiate an investigation to determine whether, as a result of the reduction or elimination of a duty provided for under the Agreement, a Korean article is being imported into the United States in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that imports of the Korean article constitute a substantial cause of serious injury or threat thereof to the domestic industry producing an article that is like, or directly competitive with, the imported article.CommentsClose CommentsPermalink





(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):CommentsClose CommentsPermalink





(1) Paragraphs (1)(B) and (3) of subsection (b).CommentsClose CommentsPermalink





(2) Subsection (c).CommentsClose CommentsPermalink





(3) Subsection (d).CommentsClose CommentsPermalink





(4) Subsection (i).CommentsClose CommentsPermalink





(d) Articles Exempt From Investigation- No investigation may be initiated under this section with respect to any Korean article if, after the date on which the Agreement enters into force, import relief has been provided with respect to that Korean article under this subtitle.CommentsClose CommentsPermalink

SEC. 312. COMMISSION ACTION ON PETITION.

(a) Determination- Not later than 120 days (180 days if critical circumstances have been alleged) after the date on which an investigation is initiated under section 311(b) with respect to a petition, the Commission shall make the determination required under that section.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(c) Additional Finding and Recommendation if Determination Affirmative-CommentsClose CommentsPermalink





(1) IN GENERAL- If the determination made by the Commission under subsection (a) with respect to imports of an article is affirmative, or if the President may consider a determination of the Commission to be an affirmative determination as provided for under paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the Commission shall find, and recommend to the President in the report required under subsection (d), the amount of import relief that is necessary to remedy or prevent the injury found by the Commission in the determination and to facilitate the efforts of the domestic industry to make a positive adjustment to import competition.CommentsClose CommentsPermalink





(2) LIMITATION ON RELIEF- The import relief recommended by the Commission under this subsection shall be limited to the relief described in section 313(c).CommentsClose CommentsPermalink





(3) VOTING; SEPARATE VIEWS- Only those members of the Commission who voted in the affirmative under subsection (a) are eligible to vote on the proposed action to remedy or prevent the injury found by the Commission. Members of the Commission who did not vote in the affirmative may submit, in the report required under subsection (d), separate views regarding what action, if any, should be taken to remedy or prevent the injury.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) the determination made under subsection (a) and an explanation of the basis for the determination;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(3) any dissenting or separate views by members of the Commission regarding the determination referred to in paragraph (1) and any finding or recommendation referred to in paragraph (2).CommentsClose CommentsPermalink





(e) Public Notice- Upon submitting a report to the President under subsection (d), the Commission shall promptly make public the report (with the exception of information which the Commission determines to be confidential) and shall publish a summary of the report in the Federal Register.CommentsClose CommentsPermalink

SEC. 313. PROVISION OF RELIEF.

(a) In General- Not later than the date that is 30 days after the date on which the President receives a report of the Commission in which the Commission’s determination under section 312(a) is affirmative, or which contains a determination under section 312(a) that the President considers to be affirmative under paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the President, subject to subsection (b), shall provide relief from imports of the article that is the subject of such 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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Nature of Relief-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as provided in paragraph (2), the import relief that the President is authorized to provide under this section with respect to imports of an article is as follows:CommentsClose CommentsPermalink





(A) The suspension of any further reduction provided for under Annex 2-B of the Agreement in the duty imposed on the article.CommentsClose CommentsPermalink





(B) An increase in the rate of duty imposed on the article to a level that does not exceed the lesser of--CommentsClose CommentsPermalink





(i) the column 1 general rate of duty imposed under the HTS on like articles at the time the import relief is provided; orCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) DUTIES APPLIED ON A SEASONAL BASIS- In the case of imports of an article to which a duty is applied on a seasonal basis, the import relief that the President is authorized to provide under this section is as follows:CommentsClose CommentsPermalink





(A) The suspension of any further reduction provided for under Annex 2-B of the Agreement in the duty imposed on the article.CommentsClose CommentsPermalink





(B) An increase in the rate of duty imposed on the article to a level that does not exceed the lesser of--CommentsClose CommentsPermalink





(i) the column 1 general rate of duty imposed under the HTS on like articles for the corresponding season immediately preceding the date the import relief is provided; orCommentsClose CommentsPermalink





(ii) the column 1 general rate of duty imposed under the HTS for the corresponding season immediately preceding the date on which the Agreement enters into force.CommentsClose CommentsPermalink





(3) PROGRESSIVE LIBERALIZATION- If the period for which import relief is provided under this section is greater than 1 year, the President shall provide for the progressive liberalization (described in article 10.2.7 of the Agreement) of such relief at regular intervals during the period of its application.CommentsClose CommentsPermalink





(d) Period of Relief-CommentsClose CommentsPermalink





(1) IN GENERAL- Subject to paragraph (2), any import relief that the President provides under this section may not be in effect for more than 2 years.CommentsClose CommentsPermalink





(2) EXTENSION-CommentsClose CommentsPermalink





(A) IN GENERAL- Subject to subparagraph (C), the President, after receiving a determination from the Commission under subparagraph (B) that is affirmative, or which the President considers to be affirmative under paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), may extend the effective period of any import relief provided under this section by up to 1 year, if the President determines that--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(ii) there is evidence that the industry is making a positive adjustment to import competition.CommentsClose CommentsPermalink





(B) ACTION BY COMMISSION-CommentsClose CommentsPermalink





(i) INVESTIGATION- Upon a petition on behalf of the industry concerned that is filed with the Commission not earlier than the date that is 9 months, and not later than the date that is 6 months, before the date on which any action taken under subsection (a) is to terminate, the Commission shall conduct an 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.CommentsClose CommentsPermalink





(ii) NOTICE AND HEARING- The Commission shall publish notice of the commencement of any proceeding under this subparagraph in the Federal Register and shall, within a reasonable time thereafter, hold a public hearing at which the Commission shall afford interested parties and consumers an opportunity to be present, to present evidence, and to respond to the presentations of other parties and consumers, and otherwise to be heard.CommentsClose CommentsPermalink





(iii) REPORT- The Commission shall submit 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.CommentsClose CommentsPermalink





(C) PERIOD OF IMPORT RELIEF- Any import relief provided under this section, including any extensions thereof, may not, in the aggregate, be in effect for more than 3 years.CommentsClose CommentsPermalink





(e) Rate After Termination of Import Relief- Beginning on the date on which import relief under this section is terminated with respect to an article, the rate of duty on that article shall be the rate that would have been in effect but for the provision of such relief.CommentsClose CommentsPermalink





(f) Articles Exempt From Relief- No import relief may be provided under this section on any article that is subject to import relief under--CommentsClose CommentsPermalink





(1) subtitle B or C; orCommentsClose CommentsPermalink





(2) chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink





(b) Exception- If an article for which relief is provided under this subtitle is an article for which the period for tariff elimination, set forth in the Schedule of the United States to Annex 2-B of the Agreement, is greater than 10 years, no relief under this subtitle may be provided for that article after the date on which that period ends.CommentsClose CommentsPermalink





(c) Presidential Determination- Import relief may be provided under this subtitle in the case of a Korean article after the date on which such relief would, but for this subsection, terminate under subsection (a) and (b), if the President determines that Korea has consented to such relief.CommentsClose CommentsPermalink

SEC. 315. COMPENSATION AUTHORITY.

For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 2133), any import relief provided by the President under section 313 shall be treated as action taken under chapter 1 of title II of such Act (19 U.S.C. 2251 et seq.).CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) by striking ‘and’; andCommentsClose CommentsPermalink





(2) by inserting before the period at the end ‘, and title III of the United States-Korea Free Trade Agreement Implementation Act’.CommentsClose CommentsPermalink

Subtitle B--Motor Vehicle Safeguard MeasuresCommentsClose CommentsPermalink

SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES.

The provisions of subtitle A shall apply with respect to a Korean motor vehicle article to the same extent that such provisions apply to Korean articles, except as follows:CommentsClose CommentsPermalink





(1) Section 311(d) and paragraphs (2) and (3) of 313(c) shall not apply.CommentsClose CommentsPermalink





(2) Section 313(d)(2)(A) shall be applied and administered by substituting ‘2 years’ for ‘1 year’.CommentsClose CommentsPermalink





(3) Section 313(d)(2)(C) shall be applied and administered by substituting ‘4 years’ for ‘3 years’.CommentsClose CommentsPermalink





(4) Section 313(f)(1) shall be applied and administered by substituting ‘subtitle A’ for ‘subtitle B or C’.CommentsClose CommentsPermalink





(5) Section 314(b) shall be applied and administered as if such section read as follows:CommentsClose CommentsPermalink





‘(b) Exception- Import relief may be provided under this subtitle with respect to a Korean motor vehicle article during any period before the date that is 10 years after the date on which duties on the article are eliminated, as set forth in section 201(d), or, if the article is not referred to in section 201(d), the Schedule of the United States to Annex 2-B of the Agreement.’.CommentsClose CommentsPermalink

Subtitle C--Textile and Apparel Safeguard MeasuresCommentsClose CommentsPermalink

SEC. 331. COMMENCEMENT OF ACTION FOR RELIEF.

(a) In General- A request for action under this subtitle for the purpose of adjusting to the obligations of the United States under the Agreement may be filed with the President by an interested party. Upon the filing of a request, the President shall review the request to determine, from information presented in the request, whether to commence consideration of the request.CommentsClose CommentsPermalink





(b) Publication of Request- If the President determines that the request under subsection (a) provides the information necessary for the request to be considered, the President shall publish in the Federal Register a notice of commencement of consideration of the request, and notice seeking public comments regarding the request. The notice shall include a summary of the request and the dates by which comments and rebuttals must be received.CommentsClose CommentsPermalink

SEC. 332. DETERMINATION AND PROVISION OF RELIEF.

(a) Determination-CommentsClose CommentsPermalink





(1) IN GENERAL- If a positive determination is made under section 331(b), the President shall determine whether, as a result of the reduction or elimination of a duty under the Agreement, a Korean textile or apparel article is being imported into the United States in such increased quantities, in absolute terms or relative to the domestic market for that article, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing an article that is like, or directly competitive with, the imported article.CommentsClose CommentsPermalink





(2) SERIOUS DAMAGE- In making a determination under paragraph (1), the President--CommentsClose CommentsPermalink





(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, no one of which is necessarily decisive; andCommentsClose CommentsPermalink





(B) shall not consider changes in technology or consumer preference as factors supporting a determination of serious damage or actual threat thereof.CommentsClose CommentsPermalink





(b) Provision of Relief-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) NATURE OF RELIEF- The relief that the President is authorized to provide under this subsection with respect to imports of an article is--CommentsClose CommentsPermalink





(A) the suspension of any further reduction provided for under Annex 2-B of the Agreement in the duty imposed on the article; orCommentsClose CommentsPermalink





(B) an increase in the rate of duty imposed on the article to a level that does not exceed the lesser of--CommentsClose CommentsPermalink





(i) the column 1 general rate of duty imposed under the HTS on like articles at the time the import relief is provided; orCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 333. PERIOD OF RELIEF.

(a) In General- Subject to subsection (b), the import relief that the President provides under section 332(b) may not be in effect for more than 2 years.CommentsClose CommentsPermalink





(b) Extension-CommentsClose CommentsPermalink





(1) IN GENERAL- Subject to paragraph (2), the President may extend the effective period of any import relief provided under this subtitle for a period of not more than 2 years, if the President determines that--CommentsClose CommentsPermalink





(A) the import relief continues to be necessary to remedy or prevent serious damage and to facilitate adjustment by the domestic industry to import competition; andCommentsClose CommentsPermalink





(B) there is evidence that the industry is making a positive adjustment to import competition.CommentsClose CommentsPermalink





(2) LIMITATION- Any relief provided under this subtitle, including any extensions thereof, may not, in the aggregate, be in effect for more than 4 years.CommentsClose CommentsPermalink

SEC. 334. ARTICLES EXEMPT FROM RELIEF.

The President may not provide import relief under this subtitle with respect to an article if--CommentsClose CommentsPermalink





(1) import relief previously has been provided under this subtitle with respect to that article; orCommentsClose CommentsPermalink





(2) the article is subject to import relief under--CommentsClose CommentsPermalink





(A) subtitle A; orCommentsClose CommentsPermalink





(B) chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).CommentsClose CommentsPermalink

SEC. 335. RATE AFTER TERMINATION OF IMPORT RELIEF.

On the date on which 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.CommentsClose CommentsPermalink

SEC. 336. TERMINATION OF RELIEF AUTHORITY.

No import relief may be provided under this subtitle with respect to any article after the date that is 10 years after the date on which duties on the article are eliminated pursuant to the Agreement.CommentsClose CommentsPermalink

SEC. 337. COMPENSATION AUTHORITY.

For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 2133), any import relief provided by the President under this subtitle shall be treated as action taken under chapter 1 of title II of such Act (19 U.S.C. 2251 et seq.).CommentsClose CommentsPermalink

SEC. 338. CONFIDENTIAL BUSINESS INFORMATION.

The President may not release information received in connection with an investigation or determination 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, the party shall also provide a nonconfidential version of the information in which the confidential business information is summarized or, if necessary, deleted.CommentsClose CommentsPermalink

Subtitle D--Cases Under Title II of the Trade Act of 1974CommentsClose CommentsPermalink

SEC. 341. FINDINGS AND ACTION ON KOREAN ARTICLES.

(a) Effect of Imports- If, in any investigation initiated under chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), the Commission makes an affirmative determination (or a determination which the President may treat as an affirmative determination under such chapter by reason of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d))), the Commission shall also find (and report to the President at the time such injury determination is submitted to the President) whether imports of the Korean article are a substantial cause of serious injury or threat thereof.CommentsClose CommentsPermalink





(b) Presidential Determination Regarding Korean Articles- In determining the nature and extent of action to be taken under chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), the President may exclude from the action Korean articles with respect to which the Commission has made a negative finding under subsection (a).CommentsClose CommentsPermalink

TITLE IV--PROCUREMENTCommentsClose CommentsPermalink

SEC. 401. ELIGIBLE PRODUCTS.

Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)(A)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘or’ at the end of clause (vi);CommentsClose CommentsPermalink





(2) by striking the period at the end of clause (vii) and inserting ‘; or’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(viii) a party to the United States-Korea Free Trade Agreement, a product or service of that country or instrumentality which is covered under that agreement for procurement by the United States.’.CommentsClose CommentsPermalink

TITLE V--OFFSETSCommentsClose CommentsPermalink

SEC. 501. INCREASE IN PENALTY ON PAID PREPARERS WHO FAIL TO COMPLY WITH EARNED INCOME TAX CREDIT DUE DILIGENCE REQUIREMENTS.

(a) In General- Section 6695(g) of the Internal Revenue Code of 1986 is amended by striking ‘$100’ and inserting ‘$500’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to returns required to be filed after December 31, 2011.CommentsClose CommentsPermalink

SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE UNITED STATES TO PROVIDE INFORMATION FOR TAX ADMINISTRATION.

(a) In General- Subchapter B of chapter 61 of the Internal Revenue Code of 1986 is amended by redesignating section 6116 as section 6117 and by inserting after section 6115 the following new section:CommentsClose CommentsPermalink

‘SEC. 6116. REQUIREMENT FOR PRISONS LOCATED IN UNITED STATES TO PROVIDE INFORMATION FOR TAX ADMINISTRATION.

‘(a) In General- Not later than September 15, 2012, and annually thereafter, the head of the Federal Bureau of Prisons and the head of any State agency charged with the responsibility for administration of prisons shall provide to the Secretary in electronic format a list with the information described in subsection (b) of all the inmates incarcerated within the prison system for any part of the prior 2 calendar years or the current calendar year through August 31.CommentsClose CommentsPermalink





‘(b) Information- The information with respect to each inmate is--CommentsClose CommentsPermalink





‘(1) first, middle, and last name,CommentsClose CommentsPermalink





‘(2) date of birth,CommentsClose CommentsPermalink





‘(3) institution of current incarceration or, for released inmates, most recent incarceration,CommentsClose CommentsPermalink





‘(4) prison assigned inmate number,CommentsClose CommentsPermalink





‘(5) the date of incarceration,CommentsClose CommentsPermalink





‘(6) the date of release or anticipated date of release,CommentsClose CommentsPermalink





‘(7) the date of work release,CommentsClose CommentsPermalink





‘(8) taxpayer identification number and whether the prison has verified such number,CommentsClose CommentsPermalink





‘(9) last known address, andCommentsClose CommentsPermalink





‘(10) any additional information as the Secretary may request.CommentsClose CommentsPermalink





‘(c) Format- The Secretary shall determine the electronic format of the information described in subsection (b).’.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of sections for such subchapter is amended by striking the item relating to section 6116 and by adding at the end the following new items:CommentsClose CommentsPermalink





‘Sec. 6116. Requirement for prisons located in United States to provide information for tax administration.CommentsClose CommentsPermalink





‘Sec. 6117. Cross reference.’.CommentsClose CommentsPermalink