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UNITED STATES–KOREA FREE TRADE
AGREEMENT IMPLEMENTATION ACT
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PUBL041
125 STAT. 428
PUBLIC LAW 112–41—OCT. 21, 2011
Public Law 112–41
112th Congress
An Act
Oct. 21, 2011
[H.R. 3080]
United States–
Korea Free Trade
Agreement
Implementation
Act.
19 USC 3805
note.
To implement the United States–Korea Free Trade Agreement.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) SHORT TITLE.—This Act may be cited as the ‘‘United States–
Korea Free Trade Agreement Implementation Act’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE
AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed
actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.
Sec.
Sec.
Sec.
Sec.
201.
202.
203.
204.
Sec.
Sec.
Sec.
Sec.
205.
206.
207.
208.
TITLE II—CUSTOMS PROVISIONS
Tariff modifications.
Rules of origin.
Customs user fees.
Disclosure of incorrect information; false certifications of origin; denial of
preferential tariff treatment.
Reliquidation of entries.
Recordkeeping requirements.
Enforcement relating to trade in textile or apparel goods.
Regulations.
TITLE III—RELIEF FROM IMPORTS
Sec. 301. Definitions.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
311.
312.
313.
314.
315.
316.
Subtitle A—Relief From Imports Benefitting From the Agreement
Commencing of action for relief.
Commission action on petition.
Provision of relief.
Termination of relief authority.
Compensation authority.
Confidential business information.
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Subtitle B—Motor Vehicle Safeguard Measures
Sec. 321. Motor vehicle safeguard measures.
Subtitle C—Textile and Apparel Safeguard Measures
Sec. 331. Commencement of action for relief.
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PUBL041
PUBLIC LAW 112–41—OCT. 21, 2011
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
332.
333.
334.
335.
336.
337.
338.
125 STAT. 429
Determination and provision of relief.
Period of relief.
Articles exempt from relief.
Rate after termination of import relief.
Termination of relief authority.
Compensation authority.
Confidential business information.
Subtitle D—Cases Under Title II of the Trade Act of 1974
Sec. 341. Findings and action on Korean articles.
TITLE IV—PROCUREMENT
Sec. 401. Eligible products.
TITLE V—OFFSETS
Sec. 501. Increase in penalty on paid preparers who fail to comply with earned income tax credit due diligence requirements.
Sec. 502. Requirement for prisons located in the United States to provide information for tax administration.
Sec. 503. Rate for merchandise processing fees.
Sec. 504. Extension of customs user fees.
Sec. 505. Time for payment of corporate estimated taxes.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to approve and implement the free trade agreement
between the United States and Korea entered into under the
authority of section 2103(b) of the Bipartisan Trade Promotion
Authority Act of 2002 (19 U.S.C. 3803(b));
(2) to secure the benefits of the agreement entered into
pursuant to an exchange of letters between the United States
and the Government of Korea on February 10, 2011;
(3) to strengthen and develop economic relations between
the United States and Korea for their mutual benefit;
(4) to establish free trade between the United States and
Korea through the reduction and elimination of barriers to
trade in goods and services and to investment; and
(5) to lay the foundation for further cooperation to expand
and enhance the benefits of the Agreement.
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SEC. 3. DEFINITIONS.
In this Act:
(1) AGREEMENT.—The term ‘‘Agreement’’ means the United
States–Korea Free Trade Agreement approved by Congress
under section 101(a)(1).
(2) COMMISSION.—The term ‘‘Commission’’ means the
United States International Trade Commission.
(3) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff
Schedule of the United States.
(4) KOREA.—The term ‘‘Korea’’ means the Republic of
Korea.
(5) TEXTILE OR APPAREL GOOD.—The term ‘‘textile or
apparel good’’ means a good listed in the Annex to the 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)).
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125 STAT. 430
PUBLIC LAW 112–41—OCT. 21, 2011
TITLE I—APPROVAL OF, AND GENERAL
PROVISIONS
RELATING
TO,
THE
AGREEMENT
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRAACTION.—Pursuant to section 2105 of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C. 3805) and section
151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress approves—
(1) the United States–Korea Free Trade Agreement entered
into on June 30, 2007, with the Government of Korea, and
submitted to Congress on October 3, 2011; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to Congress on
October 3, 2011.
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.—
At such time as the President determines that Korea has taken
measures necessary to comply with those provisions of the 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.
TIVE
President.
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SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES
AND STATE LAW.
(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provision of the Agreement, nor the application of any such provision
to any person or circumstance, which is inconsistent with any
law of the United States shall have effect.
(2) CONSTRUCTION.—Nothing in this Act shall be construed—
(A) to amend or modify any law of the United States,
or
(B) to limit any authority conferred under any law
of the United States,
unless specifically provided for in this Act.
(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.—
(1) LEGAL CHALLENGE.—No State law, or the application
thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application
is inconsistent with the Agreement, except in an action brought
by the United States for the purpose of declaring such law
or application invalid.
(2) DEFINITION OF STATE LAW.—For purposes of this subsection, the term ‘‘State law’’ includes—
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business
of insurance.
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES.—No person other than the United States—
(1) shall have any cause of action or defense under the
Agreement or by virtue of congressional approval thereof; or
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PUBLIC LAW 112–41—OCT. 21, 2011
125 STAT. 431
(2) may challenge, in any action brought under any provision of law, any action or inaction by any department, agency,
or other instrumentality of the United States, any State, or
any political subdivision of a State, on the ground that such
action or inaction is inconsistent with the Agreement.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO
FORCE AND INITIAL REGULATIONS.
(a) IMPLEMENTING ACTIONS.—
(1) PROCLAMATION AUTHORITY.—After the date of the enactment of this Act—
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations,
as may be necessary to ensure that any provision of this Act,
or amendment made by this Act, that takes effect on the
date 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.
(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.—
Any action proclaimed by the President under the authority
of this Act that is not subject to the consultation and layover
provisions under section 104 may not take effect before the
15th day after the date on which the text of the proclamation
is published in the Federal Register.
(3) WAIVER OF 15-DAY RESTRICTION.—The 15-day restriction
contained in paragraph (2) on the taking effect of proclaimed
actions is waived to the extent that the application of such
restriction would prevent the taking effect on the date on
which the Agreement enters into force of any action proclaimed
under this section.
(b) INITIAL REGULATIONS.—Initial regulations necessary or
appropriate to carry out the actions required by or authorized
under this Act or proposed in the statement of administrative
action submitted under section 101(a)(2) to implement the 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.
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SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE OF, PROCLAIMED ACTIONS.
If a provision of this Act provides that the implementation
of an action by the President by proclamation is subject to the
consultation and layover requirements of this section, such action
may be proclaimed only if—
(1) the President has obtained advice regarding the proposed action from—
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155); and
(B) the Commission;
(2) the President has submitted to the Committee on
Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report that sets forth—
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Deadlines.
President.
Reports.
PUBL041
125 STAT. 432
PUBLIC LAW 112–41—OCT. 21, 2011
(A) the action proposed to be proclaimed and the reasons therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first
day on which the requirements set forth in paragraphs (1)
and (2) have been met, has expired; and
(4) the President has consulted with the committees
referred to in paragraph (2) regarding the proposed action
during the period referred to in paragraph (3).
Time period.
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
President.
(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.
(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.
SEC. 106. ARBITRATION OF CLAIMS.
The United States is authorized to resolve any claim against
the United States covered by article 11.16.1(a)(i)(C) or article
11.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State
Dispute Settlement procedures set forth in section B of chapter
11 of the Agreement.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.
Applicability.
(a) EFFECTIVE DATES.—Except as provided in subsection (b),
this Act and the amendments made by this Act take effect on
the date on which the Agreement enters into force.
(b) EXCEPTIONS.—
(1) IN GENERAL.—Sections 1 through 3, section 207(g), this
title, and title V take effect on the date of the enactment
of this Act.
(2) CERTAIN AMENDATORY PROVISIONS.—The amendments
made by sections 203, 204, 206, and 401 of this Act take
effect on the date of the enactment of this Act and apply
with respect to Korea on the date on which the Agreement
enters into force.
(c) TERMINATION OF THE AGREEMENT.—On the date on which
the Agreement terminates, this Act (other than this subsection
and title V) and the amendments made by this Act (other than
the amendments made by title V) shall cease to have effect.
TITLE II—CUSTOMS PROVISIONS
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SEC. 201. TARIFF MODIFICATIONS.
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.—
The President may proclaim—
(1) such modifications or continuation of any duty,
(2) such continuation of duty-free or excise treatment, or
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PUBLIC LAW 112–41—OCT. 21, 2011
125 STAT. 433
(3) such additional duties,
as the President determines to be necessary or appropriate to
carry out or apply articles 2.3, 2.5, and 2.6, and Annex 2-B, Annex
4-B, and Annex 22-A, of the Agreement.
(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation
and layover provisions of section 104, the President may proclaim—
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree
to with Korea regarding the staging of any duty treatment
set forth in Annex 2-B of the Agreement,
(3) such continuation of duty-free or excise treatment, or
(4) such additional duties,
as the President determines to be necessary or appropriate to
maintain the general level of reciprocal and mutually advantageous
concessions with respect to Korea provided for by the Agreement.
(c) CONVERSION TO AD VALOREM RATES.—For purposes of 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.
(d) TARIFF TREATMENT OF MOTOR VEHICLES.—The President
may proclaim the following tariff treatment with respect to the
following motor vehicles of Korea:
(1) CERTAIN PASSENGER CARS.—In the case of originating
goods of Korea classifiable under subheading 8703.10.10,
8703.10.50, 8703.21.00, 8703.22.00, 8703.23.00, 8703.24.00,
8703.31.00, 8703.32.00, or 8703.33.00 of the HTS that are
entered, or withdrawn from warehouse for consumption—
(A) the rate of duty for such goods shall be 2.5 percent
for year 1 of the Agreement through year 4 of the Agreement; and
(B) such goods shall be free of duty for each year
thereafter.
(2) ELECTRIC MOTOR VEHICLES.—In the case of originating
goods of Korea classifiable under subheading 8703.90.00 of
the HTS that are entered, or withdrawn from warehouse for
consumption—
(A) the rate of duty for such goods shall be—
(i) 2.0 percent for year 1 of the Agreement;
(ii) 1.5 percent for year 2 of the Agreement;
(iii) 1.0 percent for year 3 of the Agreement; and
(iv) 0.5 percent for year 4 of the Agreement; and
(B) such goods shall be free of duty for each year
thereafter.
(3) CERTAIN TRUCKS.—In the case of originating goods of
Korea classifiable under subheading 8704.21.00, 8704.22.50,
8704.23.00, 8704.31.00, 8704.32.00, or 8704.90.00 of the HTS
that are entered, or withdrawn from warehouse for consumption—
(A) the rate of duty for such goods shall be—
(i) 25 percent for year 1 of the Agreement through
year 7 of the Agreement;
(ii) 16.6 percent for year 8 of the Agreement; and
(iii) 8.3 percent for year 9 of the Agreement; and
(B) such goods shall be free of duty for each year
thereafter.
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125 STAT. 434
PUBLIC LAW 112–41—OCT. 21, 2011
(4) DEFINITIONS.—In this subsection—
(A) the term ‘‘year 1 of the Agreement’’ means the
period beginning on the date, in a calendar year, on which
the Agreement enters into force and ending on December
31 of that calendar year; and
(B) the terms ‘‘year 2 of the Agreement’’, ‘‘year 3 of
the Agreement’’, ‘‘year 4 of the Agreement’’, ‘‘year 5 of
the Agreement’’, ‘‘year 6 of the Agreement’’, ‘‘year 7 of
the Agreement’’, ‘‘year 8 of the Agreement’’, and ‘‘year
9 of the Agreement’’ mean the second, third, fourth, fifth,
sixth, seventh, eighth, and ninth calendar years, respectively, in which the Agreement is in force.
SEC. 202. RULES OF ORIGIN.
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Records.
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(a) APPLICATION AND INTERPRETATION.—In this section:
(1) TARIFF CLASSIFICATION.—The basis for any tariff classification is the HTS.
(2) REFERENCE TO HTS.—Whenever in this section there
is a reference to a chapter, heading, or subheading, such reference shall be a reference to a chapter, heading, or subheading
of the HTS.
(3) COST OR VALUE.—Any cost or value referred to in this
section shall be recorded and maintained in accordance with
the generally accepted accounting principles applicable in the
territory of the country in which the good is produced (whether
Korea or the United States).
(b) ORIGINATING GOODS.—For purposes of this Act and for
purposes of implementing the preferential tariff treatment provided
for under the Agreement, except as otherwise provided in this
section, a good is an originating good if—
(1) the good is a good wholly obtained or produced entirely
in the territory of Korea, the United States, or both;
(2) the good—
(A) is produced entirely in the territory of Korea, the
United States, or both, and—
(i) each of the nonoriginating materials used in
the production of the good undergoes an applicable
change in tariff classification specified in Annex 4A or Annex 6-A of the Agreement; or
(ii) the good otherwise satisfies any applicable
regional value-content or other requirements specified
in Annex 4-A or Annex 6-A of the Agreement; and
(B) satisfies all other applicable requirements of this
section; or
(3) the good is produced entirely in the territory of Korea,
the United States, or both, exclusively from materials described
in paragraph (1) or (2).
(c) REGIONAL VALUE-CONTENT.—
(1) IN GENERAL.—For purposes of subsection (b)(2), the
regional value-content of a good referred to in Annex 6-A of
the Agreement, except for goods to which paragraph (4) applies,
shall be calculated by the importer, exporter, or producer of
the good, on the basis of the build-down method described
in paragraph (2) or the build-up method described in paragraph
(3).
(2) BUILD-DOWN METHOD.—
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PUBLIC LAW 112–41—OCT. 21, 2011
125 STAT. 435
(A) IN GENERAL.—The regional value-content of a good
may be calculated on the basis of the following builddown method:
RVC =
AV¥VNM
—————
AV
× 100
(B) DEFINITIONS.—In subparagraph (A):
(i) RVC.—The term ‘‘RVC’’ means the regional
value-content of the good, expressed as a percentage.
(ii) AV.—The term ‘‘AV’’ means the adjusted value
of the good.
(iii) VNM.—The term ‘‘VNM’’ means the value of
nonoriginating materials, other than indirect materials, that are acquired and used by the producer in
the production of the good, but does not include the
value of a material that is self-produced.
(3) BUILD-UP METHOD.—
(A) IN GENERAL.—The regional value-content of a good
may be calculated on the basis of the following buildup method:
RVC =
VOM
—————
AV
× 100
(B) DEFINITIONS.—In subparagraph (A):
(i) RVC.—The term ‘‘RVC’’ means the regional
value-content of the good, expressed as a percentage.
(ii) AV.—The term ‘‘AV’’ means the adjusted value
of the good.
(iii) VOM.—The term ‘‘VOM’’ means the value of
originating materials, other than indirect materials,
that are acquired or self-produced, and used by the
producer in the production of the good.
(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE GOODS.—
(A) IN GENERAL.—For purposes of subsection (b)(2),
the regional value-content of an automotive good referred
to in Annex 6-A of the Agreement may be calculated by
the importer, exporter, or producer of the good on the
basis of the build-down method described in paragraph
(2), the build-up method described in paragraph (3), or
the following net cost method:
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RVC =
NC¥VNM
—————
NC
× 100
(B) DEFINITIONS.—In subparagraph (A):
(i) AUTOMOTIVE GOOD.—The term ‘‘automotive
good’’ means a good provided for in any of subheadings
8407.31 through 8407.34, subheading 8408.20, heading
8409, or any of headings 8701 through 8708.
(ii) RVC.—The term ‘‘RVC’’ means the regional
value-content of the automotive good, expressed as a
percentage.
(iii) NC.—The term ‘‘NC’’ means the net cost of
the automotive good.
(iv) VNM.—The term ‘‘VNM’’ means the value of
nonoriginating materials, other than indirect materials, that are acquired and used by the producer in
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125 STAT. 436
PUBLIC LAW 112–41—OCT. 21, 2011
the production of the automotive good, but does not
include the value of a material that is self-produced.
(C) MOTOR VEHICLES.—
(i) BASIS OF CALCULATION.—For purposes of 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—
(I) with respect to all motor vehicles in any
one of the categories described in clause (ii); or
(II) with respect to all motor vehicles in any
such category that are exported to the territory
of Korea or the United States.
(ii) CATEGORIES.—A category is described in this
clause if it—
(I) is the same model line of motor vehicles,
is in the same class of motor vehicles, and is
produced in the same plant in the territory of
Korea or the United States, as the good described
in clause (i) for which regional value-content is
being calculated;
(II) is the same class of motor vehicles, and
is produced in the same plant in the territory
of Korea or the United States, as the good
described in clause (i) for which regional valuecontent is being calculated; or
(III) is the same model line of motor vehicles
produced in the territory of Korea or the United
States as the good described in clause (i) for which
regional value-content is being calculated.
(D) OTHER AUTOMOTIVE GOODS.—For purposes of 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—
(i) average the amounts calculated under the net
cost formula contained in subparagraph (A) over—
(I) the fiscal year of the motor vehicle producer
to whom the automotive goods are sold,
(II) any quarter or month, or
(III) the fiscal year of the producer of such
goods,
if the goods were produced during the fiscal year,
quarter, or month that is the basis for the calculation;
(ii) determine the average referred to in clause
(i) separately for such goods sold to 1 or more motor
vehicle producers; or
(iii) make a separate determination under clause
(i) or (ii) for such goods that are exported to the territory of Korea or the United States.
(E) CALCULATING NET COST.—The importer, exporter,
or producer of an automotive good shall, consistent with
the provisions regarding allocation of costs provided for
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PUBLIC LAW 112–41—OCT. 21, 2011
125 STAT. 437
in generally accepted accounting principles, determine the
net cost of the automotive good under subparagraph (B)
by—
(i) calculating the total cost incurred with respect
to all goods produced by the producer of the automotive
good, subtracting any sales promotion, marketing, and
after-sales service costs, royalties, shipping and
packing costs, and nonallowable interest costs that are
included in the total cost of all such goods, and then
reasonably allocating the resulting net cost of those
goods to the automotive good;
(ii) calculating the total cost incurred with respect
to all goods produced by that producer, reasonably
allocating the total cost to the automotive good, and
then subtracting any sales promotion, marketing, and
after-sales service costs, royalties, shipping and
packing costs, and nonallowable interest costs that are
included in the portion of the total cost allocated to
the automotive good; or
(iii) reasonably allocating each cost that forms part
of the total cost incurred with respect to the automotive
good so that the aggregate of these costs does not
include any sales promotion, marketing, and after-sales
service costs, royalties, shipping and packing costs,
or nonallowable interest costs.
(d) VALUE OF MATERIALS.—
(1) IN GENERAL.—For the purpose of calculating the
regional value-content of a good under subsection (c), and for
purposes of applying the de minimis rules under subsection
(f), the value of a material is—
(A) in the case of a material that is imported by the
producer of the good, the adjusted value of the material;
(B) in the case of a material acquired in the territory
in which the good is produced, the value, determined in
accordance with Articles 1 through 8, Article 15, and the
corresponding interpretive notes, of the Agreement on
Implementation of Article VII of the General Agreement
on Tariffs and Trade 1994 referred to in section 101(d)(8)
of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(8)), as set forth in regulations promulgated by the
Secretary of the Treasury providing for the application
of such Articles in the absence of an importation by the
producer; or
(C) in the case of a material that is self-produced,
the sum of—
(i) all expenses incurred in the production of the
material, including general expenses; and
(ii) an amount for profit equivalent to the profit
added in the normal course of trade.
(2) FURTHER ADJUSTMENTS TO THE VALUE OF MATERIALS.—
(A) ORIGINATING MATERIAL.—The following expenses,
if not included in the value of an originating material
calculated under paragraph (1), may be added to the value
of the originating material:
(i) The costs of freight, insurance, packing, and
all other costs incurred in transporting the material
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within or between the territory of Korea, the United
States, or both, to the location of the producer.
(ii) Duties, taxes, and customs brokerage fees on
the material paid in the territory of Korea, the United
States, or both, other than duties or taxes that are
waived, refunded, refundable, or otherwise recoverable,
including credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from
the use of the material in the production of the good,
less the value of renewable scrap or byproducts.
MATERIAL.—The
following
(B)
NONORIGINATING
expenses, if included in the value of a nonoriginating material calculated under paragraph (1), may be deducted from
the value of the nonoriginating material:
(i) The costs of freight, insurance, packing, and
all other costs incurred in transporting the material
within or between the territory of Korea, the United
States, or both, to the location of the producer.
(ii) Duties, taxes, and customs brokerage fees on
the material paid in the territory of Korea, the United
States, or both, other than duties or taxes that are
waived, refunded, refundable, or otherwise recoverable,
including credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from
the use of the material in the production of the good,
less the value of renewable scrap or byproducts.
(iv) The cost of originating materials used in the
production of the nonoriginating material in the territory of Korea, the United States, or both.
(e) ACCUMULATION.—
(1) ORIGINATING MATERIALS USED IN PRODUCTION OF GOODS
OF THE OTHER COUNTRY.—Originating materials from the 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.
(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.
(f) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.—
(1) IN GENERAL.—Except as provided in paragraphs (2)
and (3), a good that does not undergo a change in tariff classification pursuant to Annex 6-A of the Agreement is an originating good if—
(A) the value of all nonoriginating materials used in
the production of the good that do not undergo the
applicable change in tariff classification (set forth in Annex
6-A of the Agreement) does not exceed 10 percent of the
adjusted value of the good;
(B) the good meets all other applicable requirements
of this section; and
(C) the value of such nonoriginating materials is
included in the value of nonoriginating materials for any
applicable regional value-content requirement for the good.
(2) EXCEPTIONS.—Paragraph (1) does not apply to the following:
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125 STAT. 439
(A) A nonoriginating material provided for in chapter
3 that is used in the production of a good provided for
in chapter 3.
(B) A nonoriginating material provided for in chapter
4, or a nonoriginating dairy preparation containing over
10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, that is used in the production
of a good provided for in chapter 4.
(C) A nonoriginating material provided for in chapter
4, or a nonoriginating dairy preparation containing over
10 percent by weight of milk solids provided for in subheading 1901.90, that is used in the production of any
of the following goods:
(i) Infant preparations containing over 10 percent
by weight of milk solids provided for in subheading
1901.10.
(ii) Mixes and doughs, containing over 25 percent
by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20.
(iii) Dairy preparations containing over 10 percent
by weight of milk solids provided for in subheading
1901.90 or 2106.90.
(iv) Goods provided for in heading 2105.
(v) Beverages containing milk provided for in subheading 2202.90.
(vi) Animal feeds containing over 10 percent by
weight of milk solids provided for in subheading
2309.90.
(D) A nonoriginating material provided for in chapter
7 that is used in the production of a good provided for
in subheading 0703.10, 0703.20, 0709.59, 0709.60, 0711.90,
0712.20, 0714.20, or any of subheadings 0710.21 through
0710.80 or 0712.39 through 0713.10.
(E) A nonoriginating material provided for in heading
1006, or a nonoriginating rice product provided for in
chapter 11 that is used in the production of a good provided
for in heading 1006, 1102, 1103, 1104, or subheading
1901.20 or 1901.90.
(F) A nonoriginating material provided for in heading
0805, or any of subheadings 2009.11 through 2009.39, that
is used in the production of a good provided for in any
of subheadings 2009.11 through 2009.39, or in fruit or
vegetable juice of any single fruit or vegetable, fortified
with minerals or vitamins, concentrated or unconcentrated,
provided for in subheading 2106.90 or 2202.90.
(G) Nonoriginating peaches, pears, or apricots provided
for in chapter 8 or 20 that are used in the production
of a good provided for in heading 2008.
(H) A nonoriginating material provided for in chapter
15 that is used in the production of a good provided for
in any of headings 1501 through 1508, or heading 1512,
1514, or 1515.
(I) A nonoriginating material provided for in heading
1701 that is used in the production of a good provided
for in any of headings 1701 through 1703.
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PUBLIC LAW 112–41—OCT. 21, 2011
(J) A nonoriginating material provided for in chapter
17 that is used in the production of a good provided for
in subheading 1806.10.
(K) Except as provided in subparagraphs (A) through
(J) and Annex 6-A of the Agreement, a nonoriginating
material used in the production of a good provided for
in any of chapters 1 through 24, unless the nonoriginating
material is provided for in a different subheading than
the good for which origin is being determined under this
section.
(3) TEXTILE OR APPAREL GOODS.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), a textile or apparel good that is not an originating
good because certain fibers or yarns used in the production
of the component of the good that determines the tariff
classification of the good do not undergo an applicable
change in tariff classification, set forth in Annex 4-A of
the Agreement, shall be considered to be an originating
good if the total weight of all such fibers or yarns in
that component is not more than 7 percent of the total
weight of that component.
(B) CERTAIN TEXTILE OR APPAREL GOODS.—A textile
or apparel good containing elastomeric yarns in the 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.
(C) YARN, FABRIC, OR FIBER.—For purposes of this paragraph, in the case of a good that is a yarn, fabric, or
fiber, the term ‘‘component of the good that determines
the tariff classification of the good’’ means all of the fibers
in the good.
(g) FUNGIBLE GOODS AND MATERIALS.—
(1) IN GENERAL.—
(A) CLAIM FOR PREFERENTIAL TARIFF TREATMENT.—A
person claiming that a fungible good or fungible material
is an originating good may base the claim either on the
physical segregation of the fungible good or fungible material or by using an inventory management method with
respect to the fungible good or fungible material.
(B) INVENTORY MANAGEMENT METHOD.—In this subsection, the term ‘‘inventory management method’’ means—
(i) averaging;
(ii) ‘‘last-in, first-out’’;
(iii) ‘‘first-in, first-out’’; or
(iv) any other method—
(I) recognized in the generally accepted
accounting principles of the country in which the
production is performed (whether Korea or the
United States); or
(II) otherwise accepted by that country.
(2) ELECTION OF INVENTORY METHOD.—A person selecting
an inventory management method under paragraph (1) for
a particular fungible good or fungible material shall continue
to use that method for that fungible good or fungible material
throughout the fiscal year of such person.
(h) ACCESSORIES, SPARE PARTS, OR TOOLS.—
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125 STAT. 441
(1) IN GENERAL.—Subject to paragraphs (2) and (3), accessories, spare parts, or tools delivered with a good that form
part of the good’s standard accessories, spare parts, or tools
shall—
(A) be treated as originating goods if the good is an
originating good; and
(B) be disregarded in determining whether all the nonoriginating materials used in the production of the good
undergo the applicable change in tariff classification set
forth in Annex 6-A of the Agreement.
(2) CONDITIONS.—Paragraph (1) shall apply only if—
(A) the accessories, spare parts, or tools are classified
with and not invoiced separately from the good; and
(B) the quantities and value of the accessories, spare
parts, or tools are customary for the good.
(3) REGIONAL VALUE CONTENT.—If the good is subject to
a regional value-content requirement, the value of the accessories, spare parts, or tools shall be taken into account as
originating or nonoriginating materials, as the case may be,
in calculating the regional value-content of the good.
(i) PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE.—
Packaging materials and containers in which a good is packaged
for retail sale, if classified with the good, shall be disregarded
in determining whether all the nonoriginating materials used in
the production of the good undergo the applicable change in tariff
classification set forth in Annex 4-A or Annex 6-A of the Agreement,
and, if the good is subject to a regional value-content requirement,
the value of such packaging materials and containers shall be
taken into account as originating or nonoriginating materials, as
the case may be, in calculating the regional value-content of the
good.
(j) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.—
Packing materials and containers for shipment shall be disregarded
in determining whether a good is an originating good.
(k) INDIRECT MATERIALS.—An indirect material shall be disregarded in determining whether a good is an originating good.
(l) TRANSIT AND TRANSHIPMENT.—A good that has undergone
production necessary to qualify as an originating good under subsection (b) shall not be considered to be an originating good if,
subsequent to that production, the good—
(1) undergoes further production or any other operation
outside the 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; or
(2) does not remain under the control of customs authorities
in the territory of a country other than Korea or the United
States.
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN SETS.—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—
(1) each of the goods in the set is an originating good;
or
(2) the total value of the nonoriginating goods in the set
does not exceed—
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PUBLIC LAW 112–41—OCT. 21, 2011
(A) in the case of textile or apparel goods, 10 percent
of the adjusted value of the set; or
(B) in the case of goods, other than textile or apparel
goods, 15 percent of the adjusted value of the set.
(n) DEFINITIONS.—In this section:
(1) ADJUSTED VALUE.—The term ‘‘adjusted value’’ means
the value determined in accordance with Articles 1 through
8, Article 15, and the corresponding interpretive notes, of the
Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 referred to in section
101(d)(8) of the Uruguay Round Agreements Act (19 U.S.C.
3511(d)(8)), adjusted, if necessary, to exclude any costs, charges,
or expenses incurred for transportation, insurance, and related
services incident to the international shipment of the merchandise from the country of exportation to the place of importation.
(2) CLASS OF MOTOR VEHICLES.—The term ‘‘class of motor
vehicles’’ means any one of the following categories of motor
vehicles:
(A) Motor vehicles provided for in subheading 8701.20,
8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading
8705 or 8706, or motor vehicles for the transport of 16
or more persons provided for in subheading 8702.10 or
8702.90.
(B) Motor vehicles provided for in subheading 8701.10
or any of subheadings 8701.30 through 8701.90.
(C) Motor vehicles for the transport of 15 or fewer
persons provided for in subheading 8702.10 or 8702.90,
or motor vehicles provided for in subheading 8704.21 or
8704.31.
(D) Motor vehicles provided for in any of subheadings
8703.21 through 8703.90.
(3) FUNGIBLE GOOD OR FUNGIBLE MATERIAL.—The term
‘‘fungible good’’ or ‘‘fungible material’’ means a good or material,
as the case may be, that is interchangeable with another good
or material for commercial purposes and the properties of which
are essentially identical to such other good or material.
(4) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.—The
term ‘‘generally accepted accounting principles’’—
(A) means the recognized consensus or substantial
authoritative support given in the territory of Korea or
the United States, as the case may be, with respect to
the recording of revenues, expenses, costs, assets, and
liabilities, the disclosure of information, and the preparation of financial statements; and
(B) may encompass broad guidelines for general
application as well as detailed standards, practices, and
procedures.
(5) GOOD WHOLLY OBTAINED OR PRODUCED ENTIRELY IN
THE TERRITORY OF KOREA, THE UNITED STATES, OR BOTH.—
The term ‘‘good wholly obtained or produced entirely in the
territory of Korea, the United States, or both’’ means any
of the following:
(A) Plants and plant products grown, and harvested
or gathered, in the territory of Korea, the United States,
or both.
(B) Live animals born and raised in the territory of
Korea, the United States, or both.
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(C) Goods obtained in the territory of Korea, the United
States, or both from live animals.
(D) Goods obtained from hunting, trapping, fishing,
or aquaculture conducted in the territory of Korea, the
United States, or both.
(E) Minerals and other natural resources not included
in subparagraphs (A) through (D) that are extracted or
taken from the territory of Korea, the United States, or
both.
(F) Fish, shellfish, and other marine life taken from
the sea, seabed, or subsoil outside the territory of Korea
or the United States by—
(i) a vessel that is registered or recorded with
Korea and flying the flag of Korea; or
(ii) a vessel that is documented under the laws
of the United States.
(G) Goods produced on board a factory ship from goods
referred to in subparagraph (F), if such factory ship—
(i) is registered or recorded with Korea and flies
the flag of Korea; or
(ii) is a vessel that is documented under the laws
of the United States.
(H)(i) Goods taken by Korea or a person of Korea
from the seabed or subsoil outside the territory of Korea,
the United States, or both, if Korea has rights to exploit
such seabed or subsoil; or
(ii) Goods taken by the United States or a person
of the United States from the seabed or subsoil outside
the territory of the United States, Korea, or both, if the
United States has rights to exploit such seabed or subsoil.
(I) Goods taken from outer space, if the goods are
obtained by Korea or the United States or a person of
Korea or the United States and not processed in the territory of a country other than Korea or the United States.
(J) Waste and scrap derived from—
(i) manufacturing or processing operations in the
territory of Korea, the United States, or both; or
(ii) used goods collected in the territory of Korea,
the United States, or both, if such goods are fit only
for the recovery of raw materials.
(K) Recovered goods derived in the territory of Korea,
the United States, or both, from used goods, and used
in the territory of Korea, the United States, or both, in
the production of remanufactured goods.
(L) Goods, at any stage of production, produced in
the territory of Korea, the United States, or both, exclusively from—
(i) goods referred to in any of subparagraphs (A)
through (J); or
(ii) the derivatives of goods referred to in clause
(i).
(6) IDENTICAL GOODS.—The term ‘‘identical goods’’ means
goods that are the same in all respects relevant to the rule
of origin that qualifies the goods as originating goods.
(7) INDIRECT MATERIAL.—The term ‘‘indirect material’’
means a good used in the production, testing, or inspection
of another good but not physically incorporated into that other
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good, or a good used in the maintenance of buildings or the
operation of equipment associated with the production of
another good, including—
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the maintenance
of equipment or buildings;
(D) lubricants, greases, compounding materials, and
other materials used in production or used to operate equipment or buildings;
(E) gloves, glasses, footwear, clothing, safety equipment, and supplies;
(F) equipment, devices, and supplies used for testing
or inspecting the good;
(G) catalysts and solvents; and
(H) any other good that is not incorporated into the
other good but the use of which in the production of the
other good can reasonably be demonstrated to be a part
of that production.
(8) MATERIAL.—The term ‘‘material’’ means a good that
is used in the production of another good, including a part
or an ingredient.
(9) MATERIAL THAT IS SELF-PRODUCED.—The term ‘‘material
that is self-produced’’ means an originating material that is
produced by a producer of a good and used in the production
of that good.
(10) MODEL LINE OF MOTOR VEHICLES.—The term ‘‘model
line of motor vehicles’’ means a group of motor vehicles having
the same platform or model name.
(11) NET COST.—The term ‘‘net cost’’ means total cost minus
sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest
costs that are included in the total cost.
(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.
(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.
(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.
(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.
(16) PRODUCER.—The term ‘‘producer’’ means a person who
engages in the production of a good in the territory of Korea
or the United States.
(17) PRODUCTION.—The term ‘‘production’’ means growing,
mining, harvesting, fishing, breeding, raising, trapping,
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hunting, manufacturing, processing, assembling, or disassembling a good.
(18) REASONABLY ALLOCATE.—The term ‘‘reasonably allocate’’ means to apportion in a manner that would be appropriate
under generally accepted accounting principles.
(19) RECOVERED GOODS.—The term ‘‘recovered goods’’
means materials in the form of individual parts that are the
result of—
(A) the disassembly of used goods into individual parts;
and
(B) the cleaning, inspecting, testing, or other processing
that is necessary for improvement to sound working condition of such individual parts.
(20) REMANUFACTURED GOOD.—The term ‘‘remanufactured
good’’ means a good that is classified under chapter 84, 85,
87, or 90 or heading 9402, and that—
(A) is entirely or partially comprised of recovered goods;
and
(B) has a similar life expectancy and enjoys a factory
warranty similar to such a good that is new.
(21) TOTAL COST.—
(A) IN GENERAL.—The term ‘‘total cost’’—
(i) means all product costs, period costs, and other
costs for a good incurred in the territory of Korea,
the United States, or both; and
(ii) does not include profits that are earned by
the producer, regardless of whether they are retained
by the producer or paid out to other persons as dividends, or taxes paid on those profits, including capital
gains taxes.
(B) OTHER DEFINITIONS.—In this paragraph:
(i) PRODUCT COSTS.—The term ‘‘product costs’’
means costs that are associated with the production
of a good and include the value of materials, direct
labor costs, and direct overhead.
(ii) PERIOD COSTS.—The term ‘‘period costs’’ means
costs, other than product costs, that are expensed in
the period in which they are incurred, such as selling
expenses and general and administrative expenses.
(iii) OTHER COSTS.—The term ‘‘other costs’’ means
all costs recorded on the books of the producer that
are not product costs or period costs, such as interest.
(22) USED.—The term ‘‘used’’ means utilized or consumed
in the production of goods.
(o) PRESIDENTIAL PROCLAMATION AUTHORITY.—
(1) IN GENERAL.—The President is authorized to proclaim,
as part of the HTS—
(A) the provisions set forth in Annex 4-A and Annex
6-A of the Agreement; and
(B) any additional subordinate category that is necessary to carry out this title consistent with the Agreement.
(2) MODIFICATIONS.—
(A) IN GENERAL.—Subject to the consultation and layover provisions of section 104, the President may proclaim
modifications to the provisions proclaimed under the
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authority of paragraph (1)(A), other than provisions of chapters 50 through 63 (as included in Annex 4-A of the Agreement).
(B) ADDITIONAL PROCLAMATIONS.—Notwithstanding
subparagraph (A), and subject to the consultation and layover provisions of section 104, the President may proclaim—
(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; and
(ii) before the end of the 1-year period beginning
on the date on which the Agreement enters into force,
modifications to correct any typographical, clerical, or
other nonsubstantive technical error regarding the
provisions of chapters 50 through 63 (as included in
Annex 4-A of the Agreement).
(3) FIBERS, YARNS, OR FABRICS NOT AVAILABLE IN COMMERCIAL QUANTITIES IN THE UNITED STATES.—
(A) IN GENERAL.—Notwithstanding paragraph (2)(A),
the list of fibers, yarns, and fabrics set forth in the list
of the United States in Appendix 4-B-1 of the Agreement
may be modified as provided for in this paragraph.
(B) DEFINITIONS.—In this paragraph:
(i) INTERESTED ENTITY.—The term ‘‘interested
entity’’ means the Government of Korea, a potential
or actual purchaser of a textile or apparel good, or
a potential or actual supplier of a textile or apparel
good.
(ii) DAY; DAYS.—All references to ‘‘day’’ and ‘‘days’’
exclude Saturdays, Sundays, and legal holidays
observed by the Government of the United States.
(C) REQUESTS TO ADD FIBERS, YARNS, OR FABRICS.—
(i) IN GENERAL.—An interested entity may request
the President to determine that a fiber, yarn, or fabric
is not available in commercial quantities in a timely
manner in the United States and to add that fiber,
yarn, or fabric to the list of the United States in
Appendix 4-B-1 of the Agreement.
(ii) DETERMINATION.—After receiving a request
under clause (i), the President may determine
whether—
(I) the fiber, yarn, or fabric is available in
commercial quantities in a timely manner in the
United States; or
(II) any interested entity objects to the
request.
(iii) PROCLAMATION AUTHORITY.—The President
may, within the time periods specified in clause (iv),
proclaim that the fiber, yarn, or fabric that is the
subject of the request is added to the list of the United
States in Appendix 4-B-1 of the Agreement, if the
President has determined under clause (ii) that—
(I) the fiber, yarn, or fabric is not available
in commercial quantities in a timely manner in
the United States; or
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(II) no interested entity has objected to the
request.
(iv) TIME PERIODS.—The time periods within which
the President may issue a proclamation under clause
(iii) are—
(I) not later than 30 days after the date on
which a request is submitted under clause (i); or
(II) not later than 60 days after the request
is submitted, if the President determines, within
30 days after the date on which the request is
submitted, that the President does not have sufficient information to make a determination under
clause (ii).
(v) EFFECTIVE DATE.—Notwithstanding section
103(a)(2), a proclamation made under clause (iii) shall
take effect on the date on which the text of the
proclamation is published in the Federal Register.
(D) DEEMED DENIAL OF REQUEST.—If, after an
interested entity submits a request under subparagraph
(C)(i), the President does not, within 30 days of the 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.
(E) REQUESTS TO REMOVE FIBERS, YARNS, OR FABRICS.—
(i) IN GENERAL.—An interested entity may request
the President to remove from the list of the United
States in Appendix 4-B-1 of the Agreement, any fiber,
yarn, or fabric that has been added to that list pursuant to subparagraph (C)(iii).
(ii) PROCLAMATION AUTHORITY.—Not later than 30
days after the date on which a request under clause
(i) is submitted, the President may proclaim that the
fiber, yarn, or fabric that is the subject of the request
is removed from the list of the United States in
Appendix 4-B-1 of the Agreement if the President
determines that the fiber, yarn, or fabric is available
in commercial quantities in a timely manner in the
United States.
(iii) EFFECTIVE DATE.—A proclamation issued
under clause (ii) may not take effect earlier than the
date that is 6 months after the date on which the
text of the proclamation is published in the Federal
Register.
(F) PROCEDURES.—The President shall establish procedures—
(i) governing the submission of a request under
subparagraphs (C) and (E); and
(ii) providing an opportunity for interested entities
to submit comments and supporting evidence before
the President makes a determination under subparagraph (C)(ii) or (E)(ii).
Deadline.
Deadline.
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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:
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PUBLIC LAW 112–41—OCT. 21, 2011
‘‘(19) No fee may be charged under subsection (a) (9) or (10)
with respect to goods that qualify as originating goods under section
202 of the United States–Korea Free Trade Agreement Implementation Act. Any service for which an exemption from such fee is
provided by reason of this paragraph may not be funded with
money contained in the Customs User Fee Account.’’.
SEC. 204. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS OF ORIGIN; DENIAL OF PREFERENTIAL TARIFF
TREATMENT.
Regulations.
Applicability.
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Notice.
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(a) DISCLOSURE OF INCORRECT INFORMATION.—Section 592 of
the Tariff Act of 1930 (19 U.S.C. 1592) is amended—
(1) in subsection (c)—
(A) by redesignating paragraph (11) as paragraph (12);
and
(B) by inserting after paragraph (10) the following
new paragraph:
‘‘(11) PRIOR DISCLOSURE REGARDING CLAIMS UNDER THE
UNITED STATES–KOREA FREE TRADE AGREEMENT.—An importer
shall not be subject to penalties under subsection (a) for making
an incorrect claim that a good qualifies as an originating good
under section 202 of the United States–Korea Free Trade 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.’’; and
(2) by adding at the end the following new subsection:
‘‘(j) FALSE CERTIFICATIONS OF ORIGIN UNDER THE UNITED
STATES–KOREA FREE TRADE AGREEMENT.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), it is unlawful
for any person to certify falsely, by fraud, gross negligence,
or negligence, in a KFTA certification of origin (as defined
in section 508 of this Act) that a good exported from the
United States qualifies as an originating good under the rules
of origin provided for in section 202 of the United States–
Korea Free Trade Agreement Implementation Act. The procedures and penalties of this section that apply to a violation
of subsection (a) also apply to a violation of this subsection.
‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF INCORRECT
INFORMATION.—No penalty shall be imposed under this subsection if, promptly after an exporter or producer that issued
a KFTA certification of origin has reason to believe that such
certification contains or is based on incorrect information, the
exporter or producer voluntarily provides written notice of such
incorrect information to every person to whom the certification
was issued.
‘‘(3) EXCEPTION.—A person shall not be considered to have
violated paragraph (1) if—
‘‘(A) the information was correct at the time it was
provided in a KFTA certification of origin but was later
rendered incorrect due to a change in circumstances; and
‘‘(B) the person promptly and voluntarily provides written notice of the change in circumstances to all persons
to whom the person provided the certification.’’.
(b) DENIAL OF PREFERENTIAL TARIFF TREATMENT.—Section 514
of the Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding
at the end the following new subsection:
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125 STAT. 449
‘‘(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.’’.
SEC. 205. RELIQUIDATION OF ENTRIES.
Section 520(d) of the Tariff Act of 1930 (19 U.S.C. 1520(d))
is amended in the matter preceding paragraph (1)—
(1) by striking ‘‘or’’; and
(2) by striking ‘‘for which’’ and inserting ‘‘, or section 202
of the United States–Korea Free Trade Agreement Implementation Act for which’’.
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SEC. 206. RECORDKEEPING REQUIREMENTS.
Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is
amended—
(1) by redesignating subsection (i) as subsection (j);
(2) by inserting after subsection (h) the following new subsection:
‘‘(i) CERTIFICATIONS OF ORIGIN FOR GOODS EXPORTED UNDER
THE UNITED STATES–KOREA FREE TRADE AGREEMENT.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) RECORDS AND SUPPORTING DOCUMENTS.—The term
‘records and supporting documents’ means, with respect
to an exported good under paragraph (2), records and documents related to the origin of the good, including—
‘‘(i) the purchase, cost, and value of, and payment
for, the good;
‘‘(ii) the purchase, cost, and value of, and payment
for, all materials, including indirect materials, used
in the production of the good; and
‘‘(iii) the production of the good in the form in
which it was exported.
‘‘(B) KFTA CERTIFICATION OF ORIGIN.—The term ‘KFTA
certification of origin’ means the certification established
under article 6.15 of the United States–Korea Free Trade
Agreement that a good qualifies as an originating good
under such Agreement.
‘‘(2) EXPORTS TO KOREA.—Any person who completes and
issues a KFTA certification of origin for a good exported from
the United States shall make, keep, and, pursuant to rules
and regulations promulgated by the Secretary of the Treasury,
render for examination and inspection all records and supporting documents related to the origin of the good (including
the certification or copies thereof).
‘‘(3) RETENTION PERIOD.—The person who issues a KFTA
certification of origin shall keep the records and supporting
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Regulations.
Records.
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PUBLIC LAW 112–41—OCT. 21, 2011
documents relating to that certification of origin for a period
of at least 5 years after the date on which the certification
is issued.’’; and
(3) in subsection (j), as so redesignated, by striking ‘‘(g),
or (h)’’ and inserting ‘‘(g), (h), or (i)’’.
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SEC. 207. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR
APPAREL GOODS.
(a) ACTION DURING VERIFICATION.—
(1) IN GENERAL.—If the Secretary of the Treasury requests
the Government of Korea to conduct a verification pursuant
to article 4.3 of the Agreement for purposes of making a determination under paragraph (2), the President may direct the
Secretary to take appropriate action described in subsection
(b) while the verification is being conducted.
(2) DETERMINATION.—A determination under this paragraph is a determination of the Secretary that—
(A) an exporter or producer in Korea is complying
with applicable customs laws, regulations, procedures,
requirements, and practices affecting trade in textile or
apparel goods; or
(B) a claim that a textile or apparel good exported
or produced by such exporter or producer—
(i) qualifies as an originating good under section
202, or
(ii) is a good of Korea,
is accurate.
(b) APPROPRIATE ACTION DESCRIBED.—Appropriate action under
subsection (a)(1) includes—
(1) suspension of liquidation of the entry of any textile
or apparel good exported or produced by the person that is
the subject of a verification under subsection (a)(1) regarding
compliance described in subsection (a)(2)(A), in a case in which
the request for verification was based on a reasonable suspicion
of unlawful activity related to such goods; and
(2) suspension of liquidation of the entry of a textile or
apparel good for which a claim has been made that is the
subject of a verification under subsection (a)(1) regarding a
claim described in subsection (a)(2)(B).
(c) ACTION WHEN INFORMATION IS INSUFFICIENT.—If the 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.
(d) APPROPRIATE ACTION DESCRIBED.—Appropriate action under
subsection (c) includes—
(1) denial of preferential tariff treatment under the Agreement with respect to—
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification under
subsection (a)(1) regarding compliance described in subsection (a)(2)(A); or
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125 STAT. 451
(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); and
(2) denial of entry into the United States of—
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification under
subsection (a)(1) regarding compliance described in subsection (a)(2)(A); or
(B) a textile or apparel good for which a claim has
been made that is the subject of a verification under subsection (a)(1) regarding a claim described in subsection
(a)(2)(B).
(e) PUBLICATION OF NAME OF PERSON.—In accordance with
article 4.3.11 of the Agreement, the Secretary of the Treasury
may publish the name of any person that the Secretary has determined—
(1) is engaged in circumvention of applicable laws, regulations, or procedures affecting trade in textile or apparel goods;
or
(2) has failed to demonstrate that it produces, or is capable
of producing, textile or apparel goods.
(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.
(g) VERIFICATIONS IN THE UNITED STATES.—If the government
of a country that is a party to a free trade agreement with the
United States makes a request for a verification pursuant to that
agreement, the Secretary of the Treasury may request a verification
of the production of any textile or apparel good in order to assist
that government in determining whether—
(1) a claim of origin under the agreement for a textile
or apparel good is accurate; or
(2) an exporter, producer, or other enterprise located in
the United States involved in the movement of textile or apparel
goods from the United States to the territory of the requesting
government is complying with applicable customs laws, regulations, and procedures regarding trade in textile or apparel
goods.
SEC. 208. REGULATIONS.
The Secretary of the Treasury shall prescribe such regulations
as may be necessary to carry out—
(1) subsections (a) through (n) of section 202;
(2) the amendment made by section 203; and
(3) any proclamation issued under section 202(o).
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TITLE III—RELIEF FROM IMPORTS
SEC. 301. DEFINITIONS.
In this title:
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125 STAT. 452
PUBLIC LAW 112–41—OCT. 21, 2011
(1) KOREAN ARTICLE.—The term ‘‘Korean article’’ means
an article that qualifies as an originating good under section
202(b).
(2) KOREAN MOTOR VEHICLE ARTICLE.—The term ‘‘Korean
motor vehicle article’’ means a good provided for in heading
8703 or 8704 of the HTS that qualifies as an originating good
under section 202(b).
(3) KOREAN TEXTILE OR APPAREL ARTICLE.—The term
‘‘Korean textile or apparel article’’ means a textile or apparel
good (as defined in section 3(5)) that is a Korean article.
Subtitle A—Relief From Imports
Benefitting From the Agreement
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SEC. 311. COMMENCING OF ACTION FOR RELIEF.
(a) FILING OF PETITION.—
(1) IN GENERAL.—A petition requesting action under this
subtitle for the purpose of adjusting to the obligations of the
United States under the Agreement may be filed with the
Commission by an entity, including a trade association, firm,
certified or recognized union, or group of workers, that is representative of an industry. The Commission shall transmit
a copy of any petition filed under this subsection to the United
States Trade Representative.
(2) PROVISIONAL RELIEF.—An entity filing a petition under
this subsection may request that provisional relief be provided
as if the petition had been filed under section 202(a) of the
Trade Act of 1974 (19 U.S.C. 2252(a)).
(3) CRITICAL CIRCUMSTANCES.—Any allegation that critical
circumstances exist shall be included in the petition.
(b) INVESTIGATION AND DETERMINATION.—Upon the filing of
a petition under subsection (a), the Commission, unless subsection
(d) applies, shall promptly initiate an investigation to determine
whether, as a result of the reduction or elimination of a duty
provided for under the Agreement, a Korean article is being
imported into the United States in such increased quantities, in
absolute terms or relative to domestic production, and under such
conditions that imports of the Korean article constitute a substantial
cause of serious injury or threat thereof to the domestic industry
producing an article that is like, or directly competitive with, the
imported article.
(c) APPLICABLE PROVISIONS.—The following provisions of section
202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect
to any investigation initiated under subsection (b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(2) Subsection (c).
(3) Subsection (d).
(4) Subsection (i).
(d) ARTICLES EXEMPT FROM INVESTIGATION.—No investigation
may be initiated under this section with respect to any Korean
article if, after the date on which the Agreement enters into force,
import relief has been provided with respect to that Korean article
under this subtitle.
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PUBLIC LAW 112–41—OCT. 21, 2011
125 STAT. 453
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SEC. 312. COMMISSION ACTION ON PETITION.
(a) DETERMINATION.—Not later than 120 days (180 days if
critical circumstances have been alleged) after the date on which
an investigation is initiated under section 311(b) with respect to
a petition, the Commission shall make the determination required
under that section.
(b) APPLICABLE PROVISIONS.—For purposes of this subtitle, the
provisions of paragraphs (1), (2), and (3) of section 330(d) of the
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be
applied with respect to determinations and findings made under
this section as if such determinations and findings were made
under section 202 of the Trade Act of 1974 (19 U.S.C. 2252).
(c) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINATION AFFIRMATIVE.—
(1) IN GENERAL.—If the determination made by the
Commission under subsection (a) with respect to imports of
an article is affirmative, or if the President may consider a
determination of the Commission to be an affirmative 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.
(2) LIMITATION ON RELIEF.—The import relief recommended
by the Commission under this subsection shall be limited to
the relief described in section 313(c).
(3) VOTING; SEPARATE VIEWS.—Only those members of the
Commission who voted in the affirmative under subsection
(a) are eligible to vote on the proposed action to remedy or
prevent the injury found by the Commission. Members of the
Commission who did not vote in the affirmative may submit,
in the report required under subsection (d), separate views
regarding what action, if any, should be taken to remedy or
prevent the injury.
(d) REPORT TO PRESIDENT.—Not later than the date that is
30 days after the date on which a determination is made under
subsection (a) with respect to an investigation, the Commission
shall submit to the President a report that includes—
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is affirmative,
any findings and recommendations for import relief made under
subsection (c) and an explanation of the basis for each recommendation; and
(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).
(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.
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PUBLIC LAW 112–41—OCT. 21, 2011
SEC. 313. PROVISION OF RELIEF.
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(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.
(b) EXCEPTION.—The President is not required to provide import
relief under this section if the President determines that the provision of the import relief will not provide greater economic and
social benefits than costs.
(c) NATURE OF RELIEF.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
import relief that the President is authorized to provide under
this section with respect to imports of an article is as follows:
(A) The suspension of any further reduction provided
for under Annex 2-B of the Agreement in the duty imposed
on the article.
(B) An increase in the rate of duty imposed on the
article to a level that does not exceed the lesser of—
(i) the column 1 general rate of duty imposed under
the HTS on like articles at the time the import relief
is provided; or
(ii) the column 1 general rate of duty imposed
under the HTS on like articles on the day before the
date on which the Agreement enters into force.
(2) DUTIES APPLIED ON A SEASONAL BASIS.—In the case
of imports of an article to which a duty is applied on a seasonal
basis, the import relief that the President is authorized to
provide under this section is as follows:
(A) The suspension of any further reduction provided
for under Annex 2-B of the Agreement in the duty imposed
on the article.
(B) An increase in the rate of duty imposed on the
article to a level that does not exceed the lesser of—
(i) the column 1 general rate of duty imposed under
the HTS on like articles for the corresponding season
immediately preceding the date the import relief is
provided; or
(ii) the column 1 general rate of duty imposed
under the HTS for the corresponding season immediately preceding the date on which the Agreement
enters into force.
(3) PROGRESSIVE LIBERALIZATION.—If the period for which
import relief is provided under this section is greater than
1 year, the President shall provide for the progressive liberalization (described in article 10.2.7 of the Agreement) of such
relief at regular intervals during the period of its application.
(d) PERIOD OF RELIEF.—
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PUBLIC LAW 112–41—OCT. 21, 2011
125 STAT. 455
(1) IN GENERAL.—Subject to paragraph (2), any import relief
that the President provides under this section may not be
in effect for more than 2 years.
(2) EXTENSION.—
(A) IN GENERAL.—Subject to subparagraph (C), the
President, after receiving a determination from the
Commission under subparagraph (B) that is affirmative,
or which the President considers to be affirmative under
paragraph (1) of section 330(d) of the Tariff Act of 1930
(19 U.S.C. 1330(d)(1)), may extend the effective period of
any import relief provided under this section by up to
1 year, if the President determines that—
(i) the import relief continues to be necessary to
remedy or prevent serious injury and to facilitate
adjustment by the domestic industry to import competition; and
(ii) there is evidence that the industry is making
a positive adjustment to import competition.
(B) ACTION BY COMMISSION.—
(i) INVESTIGATION.—Upon a petition on behalf of
the industry concerned that is filed with the 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.
(ii) NOTICE AND HEARING.—The Commission shall
publish notice of the commencement of any proceeding
under this subparagraph in the Federal Register and
shall, within a reasonable time thereafter, hold a public
hearing at which the Commission shall afford
interested parties and consumers an opportunity to
be present, to present evidence, and to respond to
the presentations of other parties and consumers, and
otherwise to be heard.
(iii) REPORT.—The Commission shall submit to the
President a report on its investigation and 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.
(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.
(e) RATE AFTER TERMINATION OF IMPORT RELIEF.—Beginning
on the date on which import relief under this section is terminated
with respect to an article, the rate of duty on that article shall
be the rate that would have been in effect but for the provision
of such relief.
(f) ARTICLES EXEMPT FROM RELIEF.—No import relief may be
provided under this section on any article that is subject to import
relief under—
(1) subtitle B or C; or
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publication.
Effective date.
PUBL041
125 STAT. 456
PUBLIC LAW 112–41—OCT. 21, 2011
(2) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
SEC. 314. TERMINATION OF RELIEF AUTHORITY.
(a) GENERAL RULE.—Subject to subsection (b), no import relief
may be provided under this subtitle after the date that is 10
years after the date on which the Agreement enters into force.
(b) EXCEPTION.—If an article for which relief is provided under
this subtitle is an article for which the period for tariff elimination,
set forth in the Schedule of the United States to Annex 2-B of
the Agreement, is greater than 10 years, no relief under this subtitle
may be provided for that article after the date on which that
period ends.
(c) PRESIDENTIAL DETERMINATION.—Import relief may be 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.
SEC. 315. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President under
section 313 shall be treated as action taken under chapter 1 of
title II of such Act (19 U.S.C. 2251 et seq.).
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8))
is amended in the first sentence—
(1) by striking ‘‘and’’; and
(2) by inserting before the period at the end ‘‘, and title
III of the United States–Korea Free Trade Agreement
Implementation Act’’.
Subtitle B—Motor Vehicle Safeguard
Measures
SEC. 321. MOTOR VEHICLE SAFEGUARD MEASURES.
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The provisions of subtitle A shall apply with respect to a
Korean motor vehicle article to the same extent that such provisions
apply to Korean articles, except as follows:
(1) Section 311(d) and paragraphs (2) and (3) of 313(c)
shall not apply.
(2) Section 313(d)(2)(A) shall be applied and administered
by substituting ‘‘2 years’’ for ‘‘1 year’’.
(3) Section 313(d)(2)(C) shall be applied and administered
by substituting ‘‘4 years’’ for ‘‘3 years’’.
(4) Section 313(f)(1) shall be applied and administered by
substituting ‘‘subtitle A’’ for ‘‘subtitle B or C’’.
(5) Section 314(b) shall be applied and administered as
if such section read as follows:
‘‘(b) EXCEPTION.—Import relief may be provided under this
subtitle with respect to a Korean motor vehicle article during any
period before the date that is 10 years after the date on which
duties on the article are eliminated, as set forth in section 201(d),
or, if the article is not referred to in section 201(d), the Schedule
of the United States to Annex 2-B of the Agreement.’’.
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Subtitle C—Textile and Apparel Safeguard
Measures
SEC. 331. COMMENCEMENT OF ACTION FOR RELIEF.
President.
(a) IN GENERAL.—A request for action under this subtitle for
the purpose of adjusting to the obligations of the United States
under the Agreement may be filed with the President by an
interested party. Upon the filing of a request, the President shall
review the request to determine, from information presented in
the request, whether to commence consideration of the request.
(b) PUBLICATION OF REQUEST.—If the President determines that
the request under subsection (a) provides the information necessary
for the request to be considered, the President shall publish in
the Federal Register a notice of commencement of consideration
of the request, and notice seeking public comments regarding the
request. The notice shall include a summary of the request and
the dates by which comments and rebuttals must be received.
Review.
SEC. 332. DETERMINATION AND PROVISION OF RELIEF.
President.
Federal Register,
publication.
(a) DETERMINATION.—
(1) IN GENERAL.—If a positive determination is made under
section 331(b), the President shall determine whether, as a
result of the reduction or elimination of a duty under the
Agreement, a Korean textile or apparel article is being imported
into the United States in such increased quantities, in absolute
terms or relative to the domestic market for that article, and
under such conditions as to cause serious damage, or actual
threat thereof, to a domestic industry producing an article
that is like, or directly competitive with, the imported article.
(2) SERIOUS DAMAGE.—In making a determination under
paragraph (1), the President—
(A) shall examine the effect of increased imports on
the domestic industry, as reflected in changes in such 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; and
(B) shall not consider changes in technology or consumer preference as factors supporting a determination
of serious damage or actual threat thereof.
(b) PROVISION OF RELIEF.—
(1) IN GENERAL.—If a determination under subsection (a)
is affirmative, the President may provide relief from imports
of the article that is the subject of such determination, as
provided in paragraph (2), to the extent that the President
determines necessary to remedy or prevent the serious damage
and to facilitate adjustment by the domestic industry.
(2) NATURE OF RELIEF.—The relief that the President is
authorized to provide under this subsection with respect to
imports of an article is—
(A) the suspension of any further reduction provided
for under Annex 2-B of the Agreement in the duty imposed
on the article; or
(B) an increase in the rate of duty imposed on the
article to a level that does not exceed the lesser of—
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125 STAT. 458
PUBLIC LAW 112–41—OCT. 21, 2011
(i) the column 1 general rate of duty imposed under
the HTS on like articles at the time the import relief
is provided; or
(ii) the column 1 general rate of duty imposed
under the HTS on like articles on the day before the
date on which the Agreement enters into force.
SEC. 333. PERIOD OF RELIEF.
(a) IN GENERAL.—Subject to subsection (b), the import relief
that the President provides under section 332(b) may not be in
effect for more than 2 years.
(b) EXTENSION.—
(1) IN GENERAL.—Subject to paragraph (2), the President
may extend the effective period of any import relief provided
under this subtitle for a period of not more than 2 years,
if the President determines that—
(A) the import relief continues to be necessary to
remedy or prevent serious damage and to facilitate adjustment by the domestic industry to import competition; and
(B) there is evidence that the industry is making a
positive adjustment to import competition.
(2) LIMITATION.—Any relief provided under this subtitle,
including any extensions thereof, may not, in the aggregate,
be in effect for more than 4 years.
SEC. 334. ARTICLES EXEMPT FROM RELIEF.
The President may not provide import relief under this subtitle
with respect to an article if—
(1) import relief previously has been provided under this
subtitle with respect to that article; or
(2) the article is subject to import relief under—
(A) subtitle A; or
(B) chapter 1 of title II of the Trade Act of 1974
(19 U.S.C. 2251 et seq.).
SEC. 335. RATE AFTER TERMINATION OF IMPORT RELIEF.
On the date on which import relief under this subtitle is terminated with respect to an article, the rate of duty on that article
shall be the rate that would have been in effect but for the provision
of such relief.
SEC. 336. TERMINATION OF RELIEF AUTHORITY.
No import relief may be provided under this subtitle with
respect to any article after the date that is 10 years after the
date on which duties on the article are eliminated pursuant to
the Agreement.
SEC. 337. COMPENSATION AUTHORITY.
For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President under
this subtitle shall be treated as action taken under chapter 1
of title II of such Act (19 U.S.C. 2251 et seq.).
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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
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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.
Subtitle D—Cases Under Title II of the
Trade Act of 1974
SEC. 341. FINDINGS AND ACTION ON KOREAN ARTICLES.
(a) EFFECT OF IMPORTS.—If, in any investigation initiated under
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251
et seq.), the Commission makes an affirmative determination (or
a determination which the President may treat as an affirmative
determination under such chapter by reason of section 330(d) of
the Tariff Act of 1930 (19 U.S.C. 1330(d))), the Commission shall
also find (and report to the President at the time such injury
determination is submitted to the President) whether imports of
the Korean article are a substantial cause of serious injury or
threat thereof.
(b) PRESIDENTIAL DETERMINATION REGARDING KOREAN 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).
Reports.
TITLE IV—PROCUREMENT
SEC. 401. ELIGIBLE PRODUCTS.
Section 308(4)(A) of the Trade Agreements Act of 1979 (19
U.S.C. 2518(4)(A)) is amended—
(1) by striking ‘‘or’’ at the end of clause (vi);
(2) by striking the period at the end of clause (vii) and
inserting ‘‘; or’’; and
(3) by adding at the end the following new clause:
‘‘(viii) a party to the United States–Korea Free
Trade Agreement, a product or service of that country
or instrumentality which is covered under that agreement for procurement by the United States.’’.
TITLE V—OFFSETS
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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’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to returns required to be filed after December 31,
2011.
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PUBLIC LAW 112–41—OCT. 21, 2011
SEC. 502. REQUIREMENT FOR PRISONS LOCATED IN THE UNITED
STATES TO PROVIDE INFORMATION FOR TAX ADMINISTRATION.
26 USC 6117.
(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:
26 USC 6116.
‘‘SEC. 6116. REQUIREMENT FOR PRISONS LOCATED IN UNITED STATES
TO PROVIDE INFORMATION FOR TAX ADMINISTRATION.
Deadline.
Lists.
Time period.
‘‘(a) IN GENERAL.—Not later than September 15, 2012, and
annually thereafter, the head of the Federal Bureau of Prisons
and the head of any State agency charged with the responsibility
for administration of prisons shall provide to the Secretary in
electronic format a list with the information described in subsection
(b) of all the inmates incarcerated within the prison system for
any part of the prior 2 calendar years or the current calendar
year through August 31.
‘‘(b) INFORMATION.—The information with respect to each
inmate is—
‘‘(1) first, middle, and last name,
‘‘(2) date of birth,
‘‘(3) institution of current incarceration or, for released
inmates, most recent incarceration,
‘‘(4) prison assigned inmate number,
‘‘(5) the date of incarceration,
‘‘(6) the date of release or anticipated date of release,
‘‘(7) the date of work release,
‘‘(8) taxpayer identification number and whether the prison
has verified such number,
‘‘(9) last known address, and
‘‘(10) any additional information as the Secretary may
request.
‘‘(c) FORMAT.—The Secretary shall determine the electronic format of the information described in subsection (b).’’.
(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:
‘‘Sec. 6116. Requirement for prisons located in United States to provide information
for tax administration.
‘‘Sec. 6117. Cross reference.’’.
Time period.
Applicability.
SEC. 503. RATE FOR MERCHANDISE PROCESSING FEES.
For the period beginning on December 1, 2015, and ending
on June 30, 2021, section 13031(a)(9) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(9)) shall be
applied and administered—
(1) in subparagraph (A), by substituting ‘‘0.3464’’ for ‘‘0.21’’;
and
(2) in subparagraph (B)(i), by substituting ‘‘0.3464’’ for
‘‘0.21’’.
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SEC. 504. EXTENSION OF CUSTOMS USER FEES.
(a) IN GENERAL.—Section 13031(j)(3)(A) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A))
is amended by striking ‘‘January 7, 2020’’ and inserting ‘‘August
2, 2021’’.
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(b) OTHER FEES.—Section 13031(j)(3)(B)(i) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i))
is amended by striking ‘‘January 14, 2020’’ and inserting ‘‘December
8, 2020’’.
SEC. 505. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Notwithstanding section 6655 of the Internal Revenue Code
of 1986, in the case of a corporation with assets of not less than
$1,000,000,000 (determined as of the end of the preceding taxable
year)—
(1) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or September of 2012 shall be increased by 0.25 percent of such
amount (determined without regard to any increase in such
amount not contained in such Code);
(2) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or September of 2016 shall be increased by 2.75 percent of such
amount (determined without regard to any increase in such
amount not contained in such Code); and
(3) the amount of the next required installment after an
installment referred to in paragraph (1) or (2) shall be appropriately reduced to reflect the amount of the increase by reason
of such paragraph.
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Approved October 21, 2011.
LEGISLATIVE HISTORY—H.R. 3080 (S. 1642):
HOUSE REPORTS: No. 112–239 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 157 (2011):
Oct. 11, considered in House.
Oct. 12, considered and passed House and Senate.
Æ
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PsN: PUBL041
| File Type | application/pdf |
| File Title | PUBL041.PS |
| File Modified | 2012-03-20 |
| File Created | 2011-11-09 |