United States–Colombia Trade Promotion Agreement Implementation Act, United States of America, WIPO Lex

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English United States–Colombia Trade Promotion Agreement Implementation Act

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112TH CONGRESS 1ST SESSION H. R. 3078

AN ACT To implement the United States–Colombia Trade Promotion

Agreement.

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled,2

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SECTION 1. SHORT TITLE; TABLE OF CONTENTS.1

(a) SHORT TITLE.—This Act may be cited as the2

‘‘United States–Colombia Trade Promotion Agreement3

Implementation Act’’.4

(b) TABLE OF CONTENTS.—The table of contents for5

this Act is as follows:6

Sec. 1. Short title; table of contents. Sec. 2. Purposes. Sec. 3. Definitions.

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

Sec. 101. Approval and entry into force of the Agreement. Sec. 102. Relationship of the Agreement to United States and State law. Sec. 103. Implementing actions in anticipation of entry into force and initial

regulations. Sec. 104. Consultation and layover provisions for, and effective date of, pro-

claimed actions. Sec. 105. Administration of dispute settlement proceedings. Sec. 106. Arbitration of claims. Sec. 107. Effective dates; effect of termination.

TITLE II—CUSTOMS PROVISIONS

Sec. 201. Tariff modifications. Sec. 202. Additional duties on certain agricultural goods. Sec. 203. Rules of origin. Sec. 204. Customs user fees. Sec. 205. Disclosure of incorrect information; false certifications of origin; de-

nial of preferential tariff treatment. Sec. 206. Reliquidation of entries. Sec. 207. Recordkeeping requirements. Sec. 208. Enforcement relating to trade in textile or apparel goods. Sec. 209. Regulations.

TITLE III—RELIEF FROM IMPORTS

Sec. 301. Definitions.

Subtitle A—Relief From Imports Benefitting From the Agreement

Sec. 311. Commencing of action for relief. Sec. 312. Commission action on petition. Sec. 313. Provision of relief. Sec. 314. Termination of relief authority. Sec. 315. Compensation authority. Sec. 316. Confidential business information.

Subtitle B—Textile and Apparel Safeguard Measures

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Sec. 321. Commencement of action for relief. Sec. 322. Determination and provision of relief. Sec. 323. Period of relief. Sec. 324. Articles exempt from relief. Sec. 325. Rate after termination of import relief. Sec. 326. Termination of relief authority. Sec. 327. Compensation authority. Sec. 328. Confidential business information.

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

Sec. 331. Findings and action on Colombian articles.

TITLE IV—PROCUREMENT

Sec. 401. Eligible products.

TITLE V—EXTENSION OF ANDEAN TRADE PREFERENCE ACT

Sec. 501. Extension of Andean Trade Preference Act.

TITLE VI—OFFSETS

Sec. 601. Elimination of certain NAFTA customs fees exemption. Sec. 602. Extension of customs user fees. Sec. 603. Time for payment of corporate estimated taxes.

SEC. 2. PURPOSES.1

The purposes of this Act are—2

(1) to approve and implement the free trade3

agreement between the United States and Colombia4

entered into under the authority of section 2103(b)5

of the Bipartisan Trade Promotion Authority Act of6

2002 (19 U.S.C. 3803(b));7

(2) to strengthen and develop economic rela-8

tions between the United States and Colombia for9

their mutual benefit;10

(3) to establish free trade between the United11

States and Colombia through the reduction and12

elimination of barriers to trade in goods and services13

and to investment; and14

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(4) to lay the foundation for further coopera-1

tion to expand and enhance the benefits of the2

Agreement.3

SEC. 3. DEFINITIONS.4

In this Act:5

(1) AGREEMENT.—The term ‘‘Agreement’’6

means the United States–Colombia Trade Promotion7

Agreement approved by Congress under section8

101(a)(1).9

(2) COMMISSION.—The term ‘‘Commission’’10

means the United States International Trade Com-11

mission.12

(3) HTS.—The term ‘‘HTS’’ means the Har-13

monized Tariff Schedule of the United States.14

(4) TEXTILE OR APPAREL GOOD.—The term15

‘‘textile or apparel good’’ means a good listed in the16

Annex to the Agreement on Textiles and Clothing17

referred to in section 101(d)(4) of the Uruguay18

Round Agreements Act (19 U.S.C. 3511(d)(4)),19

other than a good listed in Annex 3-C of the Agree-20

ment.21

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TITLE I—APPROVAL OF, AND1 GENERAL PROVISIONS RE-2 LATING TO, THE AGREEMENT3

SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE4

AGREEMENT.5

(a) APPROVAL OF AGREEMENT AND STATEMENT OF6

ADMINISTRATIVE ACTION.—Pursuant to section 2105 of7

the Bipartisan Trade Promotion Authority Act of 20028

(19 U.S.C. 3805) and section 151 of the Trade Act of9

1974 (19 U.S.C. 2191), Congress approves—10

(1) the United States–Colombia Trade Pro-11

motion Agreement entered into on November 22,12

2006, with the Government of Colombia, as amend-13

ed on June 28, 2007, by the United States and Co-14

lombia, and submitted to Congress on October 3,15

2011; and16

(2) the statement of administrative action pro-17

posed to implement the Agreement that was sub-18

mitted to Congress on October 3, 2011.19

(b) CONDITIONS FOR ENTRY INTO FORCE OF THE20

AGREEMENT.—At such time as the President determines21

that Colombia has taken measures necessary to comply22

with those provisions of the Agreement that are to take23

effect on the date on which the Agreement enters into24

force, the President is authorized to exchange notes with25

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the Government of Colombia providing for the entry into1

force, on or after January 1, 2012, of the Agreement with2

respect to the United States.3

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED4

STATES AND STATE LAW.5

(a) RELATIONSHIP OF AGREEMENT TO UNITED6

STATES LAW.—7

(1) UNITED STATES LAW TO PREVAIL IN CON-8

FLICT.—No provision of the Agreement, nor the ap-9

plication of any such provision to any person or cir-10

cumstance, which is inconsistent with any law of the11

United States shall have effect.12

(2) CONSTRUCTION.—Nothing in this Act shall13

be construed—14

(A) to amend or modify any law of the15

United States, or16

(B) to limit any authority conferred under17

any law of the United States,18

unless specifically provided for in this Act.19

(b) RELATIONSHIP OF AGREEMENT TO STATE20

LAW.—21

(1) LEGAL CHALLENGE.—No State law, or the22

application thereof, may be declared invalid as to23

any person or circumstance on the ground that the24

provision or application is inconsistent with the25

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Agreement, except in an action brought by the1

United States for the purpose of declaring such law2

or application invalid.3

(2) DEFINITION OF STATE LAW.—For purposes4

of this subsection, the term ‘‘State law’’ includes—5

(A) any law of a political subdivision of a6

State; and7

(B) any State law regulating or taxing the8

business of insurance.9

VATE REMEDIES.—No person other than the United11

States—12

(1) shall have any cause of action or defense13

under the Agreement or by virtue of congressional14

approval thereof; or15

(2) may challenge, in any action brought under16

any provision of law, any action or inaction by any17

department, agency, or other instrumentality of the18

United States, any State, or any political subdivision19

of a State, on the ground that such action or inac-20

tion is inconsistent with the Agreement.21

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF22

ENTRY INTO FORCE AND INITIAL REGULA-23

TIONS.24

(a) IMPLEMENTING ACTIONS.—25

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(1) PROCLAMATION AUTHORITY.—After the1

date of the enactment of this Act—2

(A) the President may proclaim such ac-3

tions, and4

(B) other appropriate officers of the5

United States Government may issue such reg-6

ulations,7

as may be necessary to ensure that any provision of8

this Act, or amendment made by this Act, that takes9

effect on the date on which the Agreement enters10

into force is appropriately implemented on such11

date, but no such proclamation or regulation may12

have an effective date earlier than the date on which13

the Agreement enters into force.14

(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED15

ACTIONS.—Any action proclaimed by the President16

under the authority of this Act that is not subject17

to the consultation and layover provisions under sec-18

tion 104 may not take effect before the 15th day19

after the date on which the text of the proclamation20

is published in the Federal Register.21

(3) WAIVER OF 15-DAY RESTRICTION.—The 15-22

day restriction contained in paragraph (2) on the23

taking effect of proclaimed actions is waived to the24

extent that the application of such restriction would25

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prevent the taking effect on the date on which the1

Agreement enters into force of any action pro-2

claimed under this section.3

(b) INITIAL REGULATIONS.—Initial regulations nec-4

essary or appropriate to carry out the actions required by5

or authorized under this Act or proposed in the statement6

of administrative action submitted under section7

101(a)(2) to implement the Agreement shall, to the max-8

imum extent feasible, be issued within 1 year after the9

date on which the Agreement enters into force. In the case10

of any implementing action that takes effect on a date11

after the date on which the Agreement enters into force,12

initial regulations to carry out that action shall, to the13

maximum extent feasible, be issued within 1 year after14

such effective date.15

SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR,16

AND EFFECTIVE DATE OF, PROCLAIMED AC-17

TIONS.18

If a provision of this Act provides that the implemen-19

tation of an action by the President by proclamation is20

subject to the consultation and layover requirements of21

this section, such action may be proclaimed only if—22

(1) the President has obtained advice regarding23

the proposed action from—24

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(A) the appropriate advisory committees1

established under section 135 of the Trade Act2

of 1974 (19 U.S.C. 2155); and3

(B) the Commission;4

(2) the President has submitted to the Com-5

mittee on Finance of the Senate and the Committee6

on Ways and Means of the House of Representatives7

a report that sets forth—8

(A) the action proposed to be proclaimed9

and the reasons therefor; and10

(B) the advice obtained under paragraph11

(1);12

(3) a period of 60 calendar days, beginning on13

the first day on which the requirements set forth in14

paragraphs (1) and (2) have been met, has expired;15

and16

(4) the President has consulted with the com-17

mittees referred to in paragraph (2) regarding the18

proposed action during the period referred to in19

paragraph (3).20

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO-21

CEEDINGS.22

(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—23

The President is authorized to establish or designate with-24

in the Department of Commerce an office that shall be25

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responsible for providing administrative assistance to pan-1

els established under chapter 21 of the Agreement. The2

office shall not be considered to be an agency for purposes3

of section 552 of title 5, United States Code.4

(b) AUTHORIZATION OF APPROPRIATIONS.—There5

are authorized to be appropriated for each fiscal year after6

fiscal year 2011 to the Department of Commerce up to7

$262,500 for the establishment and operations of the of-8

fice established or designated under subsection (a) and for9

the payment of the United States share of the expenses10

of panels established under chapter 21 of the Agreement.11

SEC. 106. ARBITRATION OF CLAIMS.12

The United States is authorized to resolve any claim13

against the United States covered by article14

10.16.1(a)(i)(C) or article 10.16.1(b)(i)(C) of the Agree-15

ment, pursuant to the Investor-State Dispute Settlement16

procedures set forth in section B of chapter 10 of the17

Agreement.18

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.19

(a) EFFECTIVE DATES.—Except as provided in sub-20

section (b) and title V, this Act and the amendments made21

by this Act take effect on the date on which the Agreement22

enters into force.23

(b) EXCEPTIONS.—24

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(1) IN GENERAL.—Sections 1 through 3, this1

title, and title VI take effect on the date of the en-2

actment of this Act.3

(2) CERTAIN AMENDATORY PROVISIONS.—The4

amendments made by sections 204, 205, 207, and5

401 of this Act take effect on the date of the enact-6

ment of this Act and apply with respect to Colombia7

on the date on which the Agreement enters into8

force.9

date on which the Agreement terminates, this Act (other11

than this subsection and titles V and VI) and the amend-12

ments made by this Act (other than the amendments made13

by titles V and VI) shall cease to have effect.14

TITLE II—CUSTOMS PROVISIONS15 SEC. 201. TARIFF MODIFICATIONS.16

(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE17

AGREEMENT.—18

(1) PROCLAMATION AUTHORITY.—The Presi-19

dent may proclaim—20

(A) such modifications or continuation of21

any duty,22

(B) such continuation of duty-free or ex-23

cise treatment, or24

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as the President determines to be necessary or ap-1

propriate to carry out or apply articles 2.3, 2.5, 2.6,2

and 3.3.13, and Annex 2.3, of the Agreement.3

(2) EFFECT ON GSP STATUS.—Notwithstanding4

section 502(a)(1) of the Trade Act of 1974 (195

U.S.C. 2462(a)(1)), the President shall, on the date6

on which the Agreement enters into force, terminate7

the designation of Colombia as a beneficiary devel-8

oping country for purposes of title V of the Trade9

Act of 1974 (19 U.S.C. 2461 et seq.).10

(3) EFFECT ON ATPA STATUS.—Notwith-11

standing section 203(a)(1) of the Andean Trade12

Preference Act (19 U.S.C. 3202(a)(1)), the Presi-13

dent shall, on the date on which the Agreement en-14

ters into force, terminate the designation of Colom-15

bia as a beneficiary country for purposes of that16

Act.17

(b) OTHER TARIFF MODIFICATIONS.—Subject to the18

consultation and layover provisions of section 104, the19

President may proclaim—20

(1) such modifications or continuation of any21

duty,22

(2) such modifications as the United States23

may agree to with Colombia regarding the staging of24

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any duty treatment set forth in Annex 2.3 of the1

Agreement,2

(3) such continuation of duty-free or excise3

treatment, or4

(4) such additional duties,5

as the President determines to be necessary or appropriate6

to maintain the general level of reciprocal and mutually7

advantageous concessions with respect to Colombia pro-8

vided for by the Agreement.9

poses of subsections (a) and (b), with respect to any good11

for which the base rate in the Schedule of the United12

States to Annex 2.3 of the Agreement is a specific or com-13

pound rate of duty, the President may substitute for the14

base rate an ad valorem rate that the President deter-15

mines to be equivalent to the base rate.16

(d) TARIFF RATE QUOTAS.—In implementing the17

tariff rate quotas set forth in Appendix I to the General18

Notes to the Schedule of the United States to Annex 2.319

of the Agreement, the President shall take such action as20

may be necessary to ensure that imports of agricultural21

goods do not disrupt the orderly marketing of commodities22

in the United States.23

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SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICUL-1

TURAL GOODS.2

(a) DEFINITIONS.—In this section:3

(1) APPLICABLE NTR (MFN) RATE OF DUTY.—4

The term ‘‘applicable NTR (MFN) rate of duty’’5

means, with respect to a safeguard good, a rate of6

duty equal to the lowest of—7

(A) the base rate in the Schedule of the8

United States to Annex 2.3 of the Agreement;9

(B) the column 1 general rate of duty that10

would, on the day before the date on which the11

Agreement enters into force, apply to a good12

classifiable in the same 8-digit subheading of13

the HTS as the safeguard good; or14

would, at the time the additional duty is im-16

posed under subsection (b), apply to a good17

classifiable in the same 8-digit subheading of18

the HTS as the safeguard good.19

(2) SCHEDULE RATE OF DUTY.—The term20

‘‘schedule rate of duty’’ means, with respect to a21

safeguard good, the rate of duty for that good that22

is set forth in the Schedule of the United States to23

Annex 2.3 of the Agreement.24

(3) SAFEGUARD GOOD.—The term ‘‘safeguard25

good’’ means a good—26

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(A) that is included in the Schedule of the1

United States to Annex 2.18 of the Agreement;2

(B) that qualifies as an originating good3

under section 203, except that operations per-4

formed in or material obtained from the United5

States shall be considered as if the operations6

were performed in, or the material was obtained7

from, a country that is not a party to the8

Agreement; and9

treatment under the Agreement has been made.11

(4) YEAR 1 OF THE AGREEMENT.—The term12

‘‘year 1 of the Agreement’’ means the period begin-13

ning on the date, in a calendar year, on which the14

Agreement enters into force and ending on Decem-15

ber 31 of that calendar year.16

(5) YEARS OTHER THAN YEAR 1 OF THE17

AGREEMENT.—Any reference to a year of the Agree-18

ment subsequent to year 1 of the Agreement shall19

be deemed to be a reference to the corresponding20

calendar year in which the Agreement is in force.21

(b) ADDITIONAL DUTIES ON SAFEGUARD GOODS.—22

(1) IN GENERAL.—In addition to any duty pro-23

claimed under subsection (a) or (b) of section 201,24

the Secretary of the Treasury shall assess a duty, in25

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the amount determined under paragraph (2), on a1

safeguard good imported into the United States in2

a calendar year if the Secretary determines that,3

prior to such importation, the total volume of that4

safeguard good that is imported into the United5

States in that calendar year exceeds 140 percent of6

the volume that is provided for that safeguard good7

in the corresponding year in the applicable table8

contained in Appendix I of the General Notes to the9

Schedule of the United States to Annex 2.3 of the10

Agreement. For purposes of this subsection, year 111

in the table means year 1 of the Agreement.12

(2) CALCULATION OF ADDITIONAL DUTY.—The13

additional duty on a safeguard good under this sub-14

section shall be—15

(A) in year 1 of the Agreement through16

year 4 of the Agreement, an amount equal to17

100 percent of the excess of the applicable NTR18

(MFN) rate of duty over the schedule rate of19

duty;20

(B) in year 5 of the Agreement through21

year 7 of the Agreement, an amount equal to22

75 percent of the excess of the applicable NTR23

(MFN) rate of duty over the schedule rate of24

duty; and25

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year 9 of the Agreement, an amount equal to2

50 percent of the excess of the applicable NTR3

(MFN) rate of duty over the schedule rate of4

duty.5

(3) NOTICE.—Not later than 60 days after the6

date on which the Secretary of the Treasury first as-7

sesses an additional duty in a calendar year on a8

good under this subsection, the Secretary shall no-9

tify the Government of Colombia in writing of such10

action and shall provide to that Government data11

supporting the assessment of the additional duty.12

sessed on a good under subsection (b) if, at the time of14

entry, the good is subject to import relief under—15

(1) subtitle A of title III of this Act; or16

(2) chapter 1 of title II of the Trade Act of17

1974 (19 U.S.C. 2251 et seq.).18

(d) TERMINATION.—The assessment of an additional19

duty on a good under subsection (b) shall cease to apply20

to that good on the date on which duty-free treatment21

must be provided to that good under the Schedule of the22

United States to Annex 2.3 of the Agreement.23

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SEC. 203. RULES OF ORIGIN.1

(a) APPLICATION AND INTERPRETATION.—In this2

section:3

(1) TARIFF CLASSIFICATION.—The basis for4

any tariff classification is the HTS.5

(2) REFERENCE TO HTS.—Whenever in this6

section there is a reference to a chapter, heading, or7

subheading, such reference shall be a reference to a8

chapter, heading, or subheading of the HTS.9

(3) COST OR VALUE.—Any cost or value re-10

ferred to in this section shall be recorded and main-11

tained in accordance with the generally accepted ac-12

counting principles applicable in the territory of the13

country in which the good is produced (whether Co-14

lombia or the United States).15

(b) ORIGINATING GOODS.—For purposes of this Act16

and for purposes of implementing the preferential tariff17

treatment provided for under the Agreement, except as18

otherwise provided in this section, a good is an originating19

good if—20

(1) the good is a good wholly obtained or pro-21

duced entirely in the territory of Colombia, the22

United States, or both;23

(2) the good—24

(A) is produced entirely in the territory of25

Colombia, the United States, or both, and—26

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(i) each of the nonoriginating mate-1

rials used in the production of the good2

undergoes an applicable change in tariff3

classification specified in Annex 3-A or4

Annex 4.1 of the Agreement; or5

(ii) the good otherwise satisfies any6

applicable regional value-content or other7

requirements specified in Annex 3-A or8

Annex 4.1 of the Agreement; and9

(B) satisfies all other applicable require-10

ments of this section; or11

(3) the good is produced entirely in the terri-12

tory of Colombia, the United States, or both, exclu-13

sively from materials described in paragraph (1) or14

(2).15

(1) IN GENERAL.—For purposes of subsection17

(b)(2), the regional value-content of a good referred18

to in Annex 4.1 of the Agreement, except for goods19

to which paragraph (4) applies, shall be calculated20

by the importer, exporter, or producer of the good,21

on the basis of the build-down method described in22

paragraph (2) or the build-up method described in23

paragraph (3).24

(2) BUILD-DOWN METHOD.—25

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(A) IN GENERAL.—The regional value-con-1

tent of a good may be calculated on the basis2

of the following build-down method:3 AV¥VNM

RVC = ————— × 100 AV

(B) DEFINITIONS.—In subparagraph (A):4

(i) RVC.—The term ‘‘RVC’’ means5

the regional value-content of the good, ex-6

pressed as a percentage.7

(ii) AV.—The term ‘‘AV’’ means the8

adjusted value of the good.9

(iii) VNM.—The term ‘‘VNM’’ means10

the value of nonoriginating materials that11

are acquired and used by the producer in12

the production of the good, but does not13

include the value of a material that is self-14

produced.15

(3) BUILD-UP METHOD.—16

(A) IN GENERAL.—The regional value-con-17

tent of a good may be calculated on the basis18

of the following build-up method:19 VOM

RVC = ————— × 100 AV

(B) DEFINITIONS.—In subparagraph (A):20

(i) RVC.—The term ‘‘RVC’’ means21

the regional value-content of the good, ex-22

pressed as a percentage.23

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(ii) AV.—The term ‘‘AV’’ means the1

adjusted value of the good.2

(iii) VOM.—The term ‘‘VOM’’ means3

the value of originating materials that are4

acquired or self-produced, and used by the5

producer in the production of the good.6

(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE7

GOODS.—8

(A) IN GENERAL.—For purposes of sub-9

section (b)(2), the regional value-content of an10

automotive good referred to in Annex 4.1 of the11

Agreement shall be calculated by the importer,12

exporter, or producer of the good, on the basis13

of the following net cost method:14

NC¥VNM RVC = ————— × 100

(B) DEFINITIONS.—In subparagraph (A):15

(i) AUTOMOTIVE GOOD.—The term16

‘‘automotive good’’ means a good provided17

for in any of subheadings 8407.31 through18

8407.34, subheading 8408.20, heading19

8409, or any of headings 8701 through20

8708.21

(ii) RVC.—The term ‘‘RVC’’ means22

the regional value-content of the auto-23

motive good, expressed as a percentage.24

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(iii) NC.—The term ‘‘NC’’ means the1

net cost of the automotive good.2

(iv) VNM.—The term ‘‘VNM’’ means3

the value of nonoriginating materials that4

are acquired and used by the producer in5

the production of the automotive good, but6

does not include the value of a material7

that is self-produced.8

(i) BASIS OF CALCULATION.—For10

purposes of determining the regional value-11

content under subparagraph (A) for an12

automotive good that is a motor vehicle13

provided for in any of headings 870114

through 8705, an importer, exporter, or15

producer may average the amounts cal-16

culated under the net cost formula con-17

tained in subparagraph (A), over the pro-18

ducer’s fiscal year—19

(I) with respect to all motor vehi-20

cles in any one of the categories de-21

scribed in clause (ii); or22

(II) with respect to all motor ve-23

hicles in any such category that are24

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exported to the territory of the United1

States or Colombia.2

(ii) CATEGORIES.—A category is de-3

scribed in this clause if it—4

(I) is the same model line of5

motor vehicles, is in the same class of6

motor vehicles, and is produced in the7

same plant in the territory of Colom-8

bia or the United States, as the good9

described in clause (i) for which re-10

gional value-content is being cal-11

culated;12

(II) is the same class of motor13

vehicles, and is produced in the same14

plant in the territory of Colombia or15

the United States, as the good de-16

scribed in clause (i) for which regional17

value-content is being calculated; or18

(III) is the same model line of19

motor vehicles produced in the terri-20

tory of Colombia or the United States21

as the good described in clause (i) for22

which regional value-content is being23

calculated.24

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(D) OTHER AUTOMOTIVE GOODS.—For1

purposes of determining the regional value-con-2

tent under subparagraph (A) for automotive3

materials provided for in any of subheadings4

8407.31 through 8407.34, in subheading5

8408.20, or in heading 8409, 8706, 8707, or6

8708, that are produced in the same plant, an7

importer, exporter, or producer may—8

(i) average the amounts calculated9

under the net cost formula contained in10

subparagraph (A) over—11

(I) the fiscal year of the motor12

vehicle producer to whom the auto-13

motive goods are sold,14

(II) any quarter or month, or15

(III) the fiscal year of the pro-16

ducer of such goods,17

if the goods were produced during the fis-18

cal year, quarter, or month that is the19

basis for the calculation;20

(ii) determine the average referred to21

in clause (i) separately for such goods sold22

to 1 or more motor vehicle producers; or23

(iii) make a separate determination24

under clause (i) or (ii) for such goods that25

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are exported to the territory of Colombia1

or the United States.2

(E) CALCULATING NET COST.—The im-3

porter, exporter, or producer of an automotive4

good shall, consistent with the provisions re-5

garding allocation of costs provided for in gen-6

erally accepted accounting principles, determine7

the net cost of the automotive good under sub-8

paragraph (B) by—9

(i) calculating the total cost incurred10

with respect to all goods produced by the11

producer of the automotive good, sub-12

tracting any sales promotion, marketing,13

and after-sales service costs, royalties,14

shipping and packing costs, and nonallow-15

able interest costs that are included in the16

total cost of all such goods, and then rea-17

sonably allocating the resulting net cost of18

those goods to the automotive good;19

(ii) calculating the total cost incurred20

with respect to all goods produced by that21

producer, reasonably allocating the total22

cost to the automotive good, and then sub-23

tracting any sales promotion, marketing,24

and after-sales service costs, royalties,25

•HR 3078 EH

shipping and packing costs, and nonallow-1

able interest costs that are included in the2

portion of the total cost allocated to the3

automotive good; or4

(iii) reasonably allocating each cost5

that forms part of the total cost incurred6

with respect to the automotive good so that7

the aggregate of these costs does not in-8

clude any sales promotion, marketing, and9

after-sales service costs, royalties, shipping10

and packing costs, or nonallowable interest11

costs.12

(d) VALUE OF MATERIALS.—13

(1) IN GENERAL.—For the purpose of calcu-14

lating the regional value-content of a good under15

subsection (c), and for purposes of applying the de16

minimis rules under subsection (f), the value of a17

material is—18

(A) in the case of a material that is im-19

ported by the producer of the good, the ad-20

justed value of the material;21

(B) in the case of a material acquired in22

the territory in which the good is produced, the23

value, determined in accordance with Articles 124

through 8, Article 15, and the corresponding in-25

•HR 3078 EH

terpretive notes, of the Agreement on Imple-1

mentation of Article VII of the General Agree-2

ment on Tariffs and Trade 1994 referred to in3

section 101(d)(8) of the Uruguay Round Agree-4

ments Act (19 U.S.C. 3511(d)(8)), as set forth5

in regulations promulgated by the Secretary of6

the Treasury providing for the application of7

such Articles in the absence of an importation8

by the producer; or9

produced, the sum of—11

(i) all expenses incurred in the pro-12

duction of the material, including general13

expenses; and14

(ii) an amount for profit equivalent to15

the profit added in the normal course of16

trade.17

(2) FURTHER ADJUSTMENTS TO THE VALUE OF18

MATERIALS.—19

(A) ORIGINATING MATERIAL.—The fol-20

lowing expenses, if not included in the value of21

an originating material calculated under para-22

graph (1), may be added to the value of the23

originating material:24

•HR 3078 EH

(i) The costs of freight, insurance,1

packing, and all other costs incurred in2

transporting the material within or be-3

tween the territory of Colombia, the United4

States, or both, to the location of the pro-5

ducer.6

(ii) Duties, taxes, and customs broker-7

age fees on the material paid in the terri-8

tory of Colombia, the United States, or9

both, other than duties or taxes that are10

waived, refunded, refundable, or otherwise11

recoverable, including credit against duty12

or tax paid or payable.13

(iii) The cost of waste and spoilage re-14

sulting from the use of the material in the15

production of the good, less the value of16

renewable scrap or byproducts.17

(B) NONORIGINATING MATERIAL.—The18

following expenses, if included in the value of a19

nonoriginating material calculated under para-20

graph (1), may be deducted from the value of21

the nonoriginating material:22

(i) The costs of freight, insurance,23

packing, and all other costs incurred in24

transporting the material within or be-25

•HR 3078 EH

tween the territory of Colombia, the United1

States, or both, to the location of the pro-2

ducer.3

(ii) Duties, taxes, and customs broker-4

age fees on the material paid in the terri-5

tory of Colombia, the United States, or6

both, other than duties or taxes that are7

waived, refunded, refundable, or otherwise8

recoverable, including credit against duty9

or tax paid or payable.10

(iii) The cost of waste and spoilage re-11

sulting from the use of the material in the12

production of the good, less the value of13

renewable scrap or byproducts.14

(iv) The cost of originating materials15

used in the production of the nonorigi-16

nating material in the territory of Colom-17

bia, the United States, or both.18

(e) ACCUMULATION.—19

(1) ORIGINATING MATERIALS USED IN PRODUC-20

TION OF GOODS OF THE OTHER COUNTRY.—Origi-21

nating materials from the territory of Colombia or22

the United States that are used in the production of23

a good in the territory of the other country shall be24

•HR 3078 EH

considered to originate in the territory of such other1

country.2

(2) MULTIPLE PRODUCERS.—A good that is3

produced in the territory of Colombia, the United4

States, or both, by 1 or more producers, is an origi-5

nating good if the good satisfies the requirements of6

subsection (b) and all other applicable requirements7

of this section.8

(f) DE MINIMIS AMOUNTS OF NONORIGINATING MA-9

TERIALS.—10

(1) IN GENERAL.—Except as provided in para-11

graphs (2) and (3), a good that does not undergo a12

change in tariff classification pursuant to Annex 4.113

of the Agreement is an originating good if—14

(A)(i) the value of all nonoriginating mate-15

rials that—16

(I) are used in the production of the17

good, and18

(II) do not undergo the applicable19

change in tariff classification (set forth in20

Annex 4.1 of the Agreement),21

does not exceed 10 percent of the adjusted22

value of the good;23

(ii) the good meets all other applicable re-24

quirements of this section; and25

•HR 3078 EH

(iii) the value of such nonoriginating mate-1

rials is included in the value of nonoriginating2

materials for any applicable regional value-con-3

tent requirement for the good; or4

(B) the good meets the requirements set5

forth in paragraph 2 of Annex 4.6 of the Agree-6

ment.7

(2) EXCEPTIONS.—Paragraph (1) does not8

apply to the following:9

(A) A nonoriginating material provided for10

in chapter 4, or a nonoriginating dairy prepara-11

tion containing over 10 percent by weight of12

milk solids provided for in subheading 1901.9013

or 2106.90, that is used in the production of a14

good provided for in chapter 4.15

(B) A nonoriginating material provided for16

in chapter 4, or a nonoriginating dairy prepara-17

tion containing over 10 percent by weight of18

milk solids provided for in subheading 1901.90,19

that is used in the production of any of the fol-20

lowing goods:21

(i) Infant preparations containing22

over 10 percent by weight of milk solids23

provided for in subheading 1901.10.24

•HR 3078 EH

(ii) Mixes and doughs, containing over1

25 percent by weight of butterfat, not put2

up for retail sale, provided for in sub-3

heading 1901.20.4

(iii) Dairy preparations containing5

over 10 percent by weight of milk solids6

provided for in subheading 1901.90 or7

2106.90.8

(iv) Goods provided for in heading9

2105.10

(v) Beverages containing milk pro-11

vided for in subheading 2202.90.12

(vi) Animal feeds containing over 1013

percent by weight of milk solids provided14

for in subheading 2309.90.15

in heading 0805, or any of subheadings17

2009.11 through 2009.39, that is used in the18

production of a good provided for in any of sub-19

headings 2009.11 through 2009.39, or in fruit20

or vegetable juice of any single fruit or vege-21

table, fortified with minerals or vitamins, con-22

centrated or unconcentrated, provided for in23

subheading 2106.90 or 2202.90.24

•HR 3078 EH

(D) A nonoriginating material provided for1

in heading 0901 or 2101 that is used in the2

production of a good provided for in heading3

0901 or 2101.4

(E) A nonoriginating material provided for5

in chapter 15 that is used in the production of6

a good provided for in any of headings 15017

through 1508, or any of headings 1511 through8

1515.9

(F) A nonoriginating material provided for10

in heading 1701 that is used in the production11

of a good provided for in any of headings 170112

through 1703.13

(G) A nonoriginating material provided for14

in chapter 17 that is used in the production of15

a good provided for in subheading 1806.10.16

(H) Except as provided in subparagraphs17

(A) through (G) and Annex 4.1 of the Agree-18

ment, a nonoriginating material used in the19

production of a good provided for in any of20

chapters 1 through 24, unless the nonorigi-21

nating material is provided for in a different22

subheading than the good for which origin is23

being determined under this section.24

•HR 3078 EH

(I) A nonoriginating material that is a tex-1

tile or apparel good.2

(3) TEXTILE OR APPAREL GOODS.—3

(A) IN GENERAL.—Except as provided in4

subparagraph (B), a textile or apparel good5

that is not an originating good because certain6

fibers or yarns used in the production of the7

component of the good that determines the tar-8

iff classification of the good do not undergo an9

applicable change in tariff classification, set10

forth in Annex 3-A of the Agreement, shall be11

considered to be an originating good if—12

(i) the total weight of all such fibers13

or yarns in that component is not more14

than 10 percent of the total weight of that15

component; or16

(ii) the yarns are those described in17

section 204(b)(3)(B)(vi)(IV) of the Andean18

Trade Preference Act (19 U.S.C.19

3203(b)(3)(B)(vi)(IV)) (as in effect on20

February 12, 2011).21

(B) CERTAIN TEXTILE OR APPAREL22

GOODS.—A textile or apparel good containing23

elastomeric yarns in the component of the good24

that determines the tariff classification of the25

•HR 3078 EH

good shall be considered to be an originating1

good only if such yarns are wholly formed in2

the territory of Colombia, the United States, or3

both.4

poses of this paragraph, in the case of a good6

that is a yarn, fabric, or fiber, the term ‘‘com-7

ponent of the good that determines the tariff8

classification of the good’’ means all of the fi-9

bers in the good.10

(g) FUNGIBLE GOODS AND MATERIALS.—11

(1) IN GENERAL.—12

(A) CLAIM FOR PREFERENTIAL TARIFF13

TREATMENT.—A person claiming that a fun-14

gible good or fungible material is an originating15

good may base the claim either on the physical16

segregation of the fungible good or fungible ma-17

terial or by using an inventory management18

method with respect to the fungible good or19

fungible material.20

(B) INVENTORY MANAGEMENT METHOD.—21

In this subsection, the term ‘‘inventory manage-22

ment method’’ means—23

(i) averaging;24

(ii) ‘‘last-in, first-out’’;25

•HR 3078 EH

(iii) ‘‘first-in, first-out’’; or1

(iv) any other method—2

(I) recognized in the generally3

accepted accounting principles of the4

country in which the production is5

performed (whether Colombia or the6

United States); or7

(II) otherwise accepted by that8

country.9

(2) ELECTION OF INVENTORY METHOD.—A10

person selecting an inventory management method11

under paragraph (1) for a particular fungible good12

or fungible material shall continue to use that meth-13

od for that fungible good or fungible material14

throughout the fiscal year of such person.15

(h) ACCESSORIES, SPARE PARTS, OR TOOLS.—16

(1) IN GENERAL.—Subject to paragraphs (2)17

and (3), accessories, spare parts, or tools delivered18

with a good that form part of the good’s standard19

accessories, spare parts, or tools shall—20

(A) be treated as originating goods if the21

good is an originating good; and22

(B) be disregarded in determining whether23

all the nonoriginating materials used in the pro-24

duction of the good undergo the applicable25

•HR 3078 EH

change in tariff classification set forth in Annex1

4.1 of the Agreement.2

(2) CONDITIONS.—Paragraph (1) shall apply3

only if—4

(A) the accessories, spare parts, or tools5

are classified with and not invoiced separately6

from the good, regardless of whether such ac-7

cessories, spare parts, or tools are specified or8

are separately identified in the invoice for the9

good; and10

(B) the quantities and value of the acces-11

sories, spare parts, or tools are customary for12

the good.13

(3) REGIONAL VALUE CONTENT.—If the good is14

subject to a regional value-content requirement, the15

value of the accessories, spare parts, or tools shall16

be taken into account as originating or nonorigi-17

nating materials, as the case may be, in calculating18

the regional value-content of the good.19

(i) PACKAGING MATERIALS AND CONTAINERS FOR20

RETAIL SALE.—Packaging materials and containers in21

which a good is packaged for retail sale, if classified with22

the good, shall be disregarded in determining whether all23

the nonoriginating materials used in the production of the24

good undergo the applicable change in tariff classification25

•HR 3078 EH

set forth in Annex 3-A or Annex 4.1 of the Agreement,1

and, if the good is subject to a regional value-content re-2

quirement, the value of such packaging materials and con-3

tainers shall be taken into account as originating or non-4

originating materials, as the case may be, in calculating5

the regional value-content of the good.6

(j) PACKING MATERIALS AND CONTAINERS FOR7

SHIPMENT.—Packing materials and containers for ship-8

ment shall be disregarded in determining whether a good9

is an originating good.10

(k) INDIRECT MATERIALS.—An indirect material11

shall be treated as an originating material without regard12

to where it is produced.13

(l) TRANSIT AND TRANSHIPMENT.—A good that has14

undergone production necessary to qualify as an origi-15

nating good under subsection (b) shall not be considered16

to be an originating good if, subsequent to that produc-17

tion, the good—18

(1) undergoes further production or any other19

operation outside the territory of Colombia or the20

United States, other than unloading, reloading, or21

any other operation necessary to preserve the good22

in good condition or to transport the good to the ter-23

ritory of Colombia or the United States; or24

•HR 3078 EH

(2) does not remain under the control of cus-1

toms authorities in the territory of a country other2

than Colombia or the United States.3

(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN4

SETS.—Notwithstanding the rules set forth in Annex 3-5

A and Annex 4.1 of the Agreement, goods classifiable as6

goods put up in sets for retail sale as provided for in Gen-7

eral Rule of Interpretation 3 of the HTS shall not be con-8

sidered to be originating goods unless—9

(1) each of the goods in the set is an origi-10

nating good; or11

(2) the total value of the nonoriginating goods12

in the set does not exceed—13

(A) in the case of textile or apparel goods,14

10 percent of the adjusted value of the set; or15

(B) in the case of goods, other than textile16

or apparel goods, 15 percent of the adjusted17

value of the set.18

(n) DEFINITIONS.—In this section:19

(1) ADJUSTED VALUE.—The term ‘‘adjusted20

value’’ means the value determined in accordance21

with Articles 1 through 8, Article 15, and the cor-22

responding interpretive notes, of the Agreement on23

Implementation of Article VII of the General Agree-24

ment on Tariffs and Trade 1994 referred to in sec-25

•HR 3078 EH

tion 101(d)(8) of the Uruguay Round Agreements1

Act (19 U.S.C. 3511(d)(8)), adjusted, if necessary,2

to exclude any costs, charges, or expenses incurred3

for transportation, insurance, and related services4

incident to the international shipment of the mer-5

chandise from the country of exportation to the6

place of importation.7

(2) CLASS OF MOTOR VEHICLES.—The term8

‘‘class of motor vehicles’’ means any one of the fol-9

lowing categories of motor vehicles:10

(A) Motor vehicles provided for in sub-11

heading 8701.20, 8704.10, 8704.22, 8704.23,12

8704.32, or 8704.90, or heading 8705 or 8706,13

or motor vehicles for the transport of 16 or14

more persons provided for in subheading15

8702.10 or 8702.90.16

(B) Motor vehicles provided for in sub-17

heading 8701.10 or any of subheadings18

8701.30 through 8701.90.19

or fewer persons provided for in subheading21

8702.10 or 8702.90, or motor vehicles provided22

for in subheading 8704.21 or 8704.31.23

(D) Motor vehicles provided for in any of24

subheadings 8703.21 through 8703.90.25

•HR 3078 EH

(3) FUNGIBLE GOOD OR FUNGIBLE MATE-1

RIAL.—The term ‘‘fungible good’’ or ‘‘fungible mate-2

rial’’ means a good or material, as the case may be,3

that is interchangeable with another good or mate-4

rial for commercial purposes and the properties of5

which are essentially identical to such other good or6

material.7

(4) GENERALLY ACCEPTED ACCOUNTING PRIN-8

CIPLES.—The term ‘‘generally accepted accounting9

principles’’—10

(A) means the recognized consensus or11

substantial authoritative support given in the12

territory of Colombia or the United States, as13

the case may be, with respect to the recording14

of revenues, expenses, costs, assets, and liabil-15

ities, the disclosure of information, and the16

preparation of financial statements; and17

(B) may encompass broad guidelines for18

general application as well as detailed stand-19

ards, practices, and procedures.20

(5) GOOD WHOLLY OBTAINED OR PRODUCED21

ENTIRELY IN THE TERRITORY OF COLOMBIA, THE22

UNITED STATES, OR BOTH.—The term ‘‘good wholly23

obtained or produced entirely in the territory of Co-24

•HR 3078 EH

lombia, the United States, or both’’ means any of1

the following:2

(A) Plants and plant products harvested or3

gathered in the territory of Colombia, the4

United States, or both.5

(B) Live animals born and raised in the6

territory of Colombia, the United States, or7

both.8

lombia, the United States, or both from live10

animals.11

(D) Goods obtained from hunting, trap-12

ping, fishing, or aquaculture conducted in the13

territory of Colombia, the United States, or14

both.15

(E) Minerals and other natural resources16

not included in subparagraphs (A) through (D)17

that are extracted or taken from the territory18

of Colombia, the United States, or both.19

(F) Fish, shellfish, and other marine life20

taken from the sea, seabed, or subsoil outside21

the territory of Colombia or the United States22

by—23

•HR 3078 EH

(i) a vessel that is registered or re-1

corded with Colombia and flying the flag of2

Colombia; or3

(ii) a vessel that is documented under4

the laws of the United States.5

(G) Goods produced on board a factory6

ship from goods referred to in subparagraph7

(F), if such factory ship—8

(i) is registered or recorded with Co-9

lombia and flies the flag of Colombia; or10

(ii) is a vessel that is documented11

under the laws of the United States.12

(H)(i) Goods taken by Colombia or a per-13

son of Colombia from the seabed or subsoil out-14

side the territorial waters of Colombia, if Co-15

lombia has rights to exploit such seabed or sub-16

soil.17

(ii) Goods taken by the United States or a18

person of the United States from the seabed or19

subsoil outside the territorial waters of the20

United States, if the United States has rights21

to exploit such seabed or subsoil.22

(I) Goods taken from outer space, if the23

goods are obtained by Colombia or the United24

States or a person of Colombia or the United25

•HR 3078 EH

States and not processed in the territory of a1

country other than Colombia or the United2

States.3

(J) Waste and scrap derived from—4

(i) manufacturing or processing oper-5

ations in the territory of Colombia, the6

United States, or both; or7

(ii) used goods collected in the terri-8

tory of Colombia, the United States, or9

both, if such goods are fit only for the re-10

covery of raw materials.11

(K) Recovered goods derived in the terri-12

tory of Colombia, the United States, or both,13

from used goods, and used in the territory of14

Colombia, the United States, or both, in the15

production of remanufactured goods.16

(L) Goods, at any stage of production, pro-17

duced in the territory of Colombia, the United18

States, or both, exclusively from—19

(i) goods referred to in any of sub-20

paragraphs (A) through (J); or21

(ii) the derivatives of goods referred22

to in clause (i).23

(6) IDENTICAL GOODS.—The term ‘‘identical24

goods’’ means goods that are the same in all re-25

•HR 3078 EH

spects relevant to the rule of origin that qualifies the1

goods as originating goods.2

(7) INDIRECT MATERIAL.—The term ‘‘indirect3

material’’ means a good used in the production, test-4

ing, or inspection of another good but not physically5

incorporated into that other good, or a good used in6

the maintenance of buildings or the operation of7

equipment associated with the production of another8

good, including—9

(A) fuel and energy;10

(B) tools, dies, and molds;11

maintenance of equipment or buildings;13

(D) lubricants, greases, compounding ma-14

terials, and other materials used in production15

or used to operate equipment or buildings;16

(E) gloves, glasses, footwear, clothing,17

safety equipment, and supplies;18

(F) equipment, devices, and supplies used19

for testing or inspecting the good;20

(G) catalysts and solvents; and21

(H) any other good that is not incor-22

porated into the other good but the use of23

which in the production of the other good can24

•HR 3078 EH

reasonably be demonstrated to be a part of that1

production.2

(8) MATERIAL.—The term ‘‘material’’ means a3

good that is used in the production of another good,4

including a part or an ingredient.5

(9) MATERIAL THAT IS SELF-PRODUCED.—The6

term ‘‘material that is self-produced’’ means an orig-7

inating material that is produced by a producer of8

a good and used in the production of that good.9

(10) MODEL LINE OF MOTOR VEHICLES.—The10

term ‘‘model line of motor vehicles’’ means a group11

of motor vehicles having the same platform or model12

name.13

(11) NET COST.—The term ‘‘net cost’’ means14

total cost minus sales promotion, marketing, and15

after-sales service costs, royalties, shipping and16

packing costs, and nonallowable interest costs that17

are included in the total cost.18

(12) NONALLOWABLE INTEREST COSTS.—The19

term ‘‘nonallowable interest costs’’ means interest20

costs incurred by a producer that exceed 700 basis21

points above the applicable official interest rate for22

comparable maturities of the country in which the23

producer is located.24

•HR 3078 EH

(13) NONORIGINATING GOOD OR NONORIGI-1

NATING MATERIAL.—The term ‘‘nonoriginating2

good’’ or ‘‘nonoriginating material’’ means a good or3

material, as the case may be, that does not qualify4

as originating under this section.5

(14) PACKING MATERIALS AND CONTAINERS6

FOR SHIPMENT.—The term ‘‘packing materials and7

containers for shipment’’ means goods used to pro-8

tect another good during its transportation and does9

not include the packaging materials and containers10

in which the other good is packaged for retail sale.11

(15) PREFERENTIAL TARIFF TREATMENT.—12

The term ‘‘preferential tariff treatment’’ means the13

customs duty rate, and the treatment under article14

2.10.4 of the Agreement, that are applicable to an15

originating good pursuant to the Agreement.16

(16) PRODUCER.—The term ‘‘producer’’ means17

a person who engages in the production of a good18

in the territory of Colombia or the United States.19

(17) PRODUCTION.—The term ‘‘production’’20

means growing, mining, harvesting, fishing, raising,21

trapping, hunting, manufacturing, processing, as-22

sembling, or disassembling a good.23

(18) REASONABLY ALLOCATE.—The term ‘‘rea-24

sonably allocate’’ means to apportion in a manner25

•HR 3078 EH

that would be appropriate under generally accepted1

accounting principles.2

(19) RECOVERED GOODS.—The term ‘‘recov-3

ered goods’’ means materials in the form of indi-4

vidual parts that are the result of—5

(A) the disassembly of used goods into in-6

dividual parts; and7

(B) the cleaning, inspecting, testing, or8

other processing that is necessary for improve-9

ment to sound working condition of such indi-10

vidual parts.11

(20) REMANUFACTURED GOOD.—The term ‘‘re-12

manufactured good’’ means an industrial good as-13

sembled in the territory of Colombia or the United14

States, or both, that is classified under chapter 84,15

85, 87, or 90 or heading 9402, other than a good16

classified under heading 8418 or 8516, and that—17

(A) is entirely or partially comprised of re-18

covered goods; and19

(B) has a similar life expectancy and en-20

joys a factory warranty similar to such a good21

that is new.22

(21) TOTAL COST.—23

(A) IN GENERAL.—The term ‘‘total24

cost’’—25

•HR 3078 EH

(i) means all product costs, period1

costs, and other costs for a good incurred2

in the territory of Colombia, the United3

States, or both; and4

(ii) does not include profits that are5

earned by the producer, regardless of6

whether they are retained by the producer7

or paid out to other persons as dividends,8

or taxes paid on those profits, including9

capital gains taxes.10

(B) OTHER DEFINITIONS.—In this para-11

graph:12

(i) PRODUCT COSTS.—The term13

‘‘product costs’’ means costs that are asso-14

ciated with the production of a good and15

include the value of materials, direct labor16

costs, and direct overhead.17

(ii) PERIOD COSTS.—The term ‘‘pe-18

riod costs’’ means costs, other than prod-19

uct costs, that are expensed in the period20

in which they are incurred, such as selling21

expenses and general and administrative22

expenses.23

(iii) OTHER COSTS.—The term ‘‘other24

costs’’ means all costs recorded on the25

•HR 3078 EH

books of the producer that are not product1

costs or period costs, such as interest.2

(22) USED.—The term ‘‘used’’ means utilized3

or consumed in the production of goods.4

(o) PRESIDENTIAL PROCLAMATION AUTHORITY.—5

(1) IN GENERAL.—The President is authorized6

to proclaim, as part of the HTS—7

(A) the provisions set forth in Annex 3-A8

and Annex 4.1 of the Agreement; and9

(B) any additional subordinate category10

that is necessary to carry out this title con-11

sistent with the Agreement.12

(2) FABRICS AND YARNS NOT AVAILABLE IN13

COMMERCIAL QUANTITIES IN THE UNITED14

STATES.—The President is authorized to proclaim15

that a fabric or yarn is added to the list in Annex16

3-B of the Agreement in an unrestricted quantity, as17

provided in article 3.3.5(e) of the Agreement.18

(3) MODIFICATIONS.—19

(A) IN GENERAL.—Subject to the consulta-20

tion and layover provisions of section 104, the21

President may proclaim modifications to the22

provisions proclaimed under the authority of23

paragraph (1)(A), other than provisions of24

•HR 3078 EH

chapters 50 through 63 (as included in Annex1

3-A of the Agreement).2

(B) ADDITIONAL PROCLAMATIONS.—Not-3

withstanding subparagraph (A), and subject to4

the consultation and layover provisions of sec-5

tion 104, the President may proclaim before the6

end of the 1-year period beginning on the date7

on which the Agreement enters into force,8

modifications to correct any typographical, cler-9

ical, or other nonsubstantive technical error re-10

garding the provisions of chapters 50 through11

63 (as included in Annex 3-A of the Agree-12

ment).13

(4) FABRICS, YARNS, OR FIBERS NOT AVAIL-14

ABLE IN COMMERCIAL QUANTITIES IN COLOMBIA15

AND THE UNITED STATES.—16

(A) IN GENERAL.—Notwithstanding para-17

graph (3)(A), the list of fabrics, yarns, and fi-18

bers set forth in Annex 3-B of the Agreement19

may be modified as provided for in this para-20

graph.21

(B) DEFINITIONS.—In this paragraph:22

(i) INTERESTED ENTITY.—The term23

‘‘interested entity’’ means the Government24

of Colombia, a potential or actual pur-25

•HR 3078 EH

chaser of a textile or apparel good, or a po-1

tential or actual supplier of a textile or ap-2

parel good.3

(ii) DAY; DAYS.—All references to4

‘‘day’’ and ‘‘days’’ exclude Saturdays, Sun-5

days, and legal holidays observed by the6

Government of the United States.7

OR FIBERS.—9

(i) IN GENERAL.—An interested entity10

may request the President to determine11

that a fabric, yarn, or fiber is not available12

in commercial quantities in a timely man-13

ner in Colombia and the United States and14

to add that fabric, yarn, or fiber to the list15

in Annex 3-B of the Agreement in a re-16

stricted or unrestricted quantity.17

(ii) DETERMINATION.—After receiving18

a request under clause (i), the President19

may determine whether—20

(I) the fabric, yarn, or fiber is21

available in commercial quantities in a22

timely manner in Colombia or the23

United States; or24

•HR 3078 EH

(II) any interested entity objects1

to the request.2

(iii) PROCLAMATION AUTHORITY.—3

The President may, within the time peri-4

ods specified in clause (iv), proclaim that5

the fabric, yarn, or fiber that is the subject6

of the request is added to the list in Annex7

3-B of the Agreement in an unrestricted8

quantity, or in any restricted quantity that9

the President may establish, if the Presi-10

dent has determined under clause (ii)11

that—12

(I) the fabric, yarn, or fiber is13

not available in commercial quantities14

in a timely manner in Colombia and15

the United States; or16

(II) no interested entity has ob-17

jected to the request.18

(iv) TIME PERIODS.—The time peri-19

ods within which the President may issue20

a proclamation under clause (iii) are—21

(I) not later than 30 days after22

the date on which a request is sub-23

mitted under clause (i); or24

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(II) not later than 44 days after1

the request is submitted, if the Presi-2

dent determines, within 30 days after3

the date on which the request is sub-4

mitted, that the President does not5

have sufficient information to make a6

determination under clause (ii).7

(v) EFFECTIVE DATE.—Notwith-8

standing section 103(a)(2), a proclamation9

made under clause (iii) shall take effect on10

the date on which the text of the proclama-11

tion is published in the Federal Register.12

(vi) SUBSEQUENT ACTION.—Not later13

than 6 months after proclaiming under14

clause (iii) that a fabric, yarn, or fiber is15

added to the list in Annex 3-B of the16

Agreement in a restricted quantity, the17

President may eliminate the restriction if18

the President determines that the fabric,19

yarn, or fiber is not available in commer-20

cial quantities in a timely manner in Co-21

lombia and the United States.22

(D) DEEMED APPROVAL OF REQUEST.—If,23

after an interested entity submits a request24

under subparagraph (C)(i), the President does25

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not, within the applicable time period specified1

in subparagraph (C)(iv), make a determination2

under subparagraph (C)(ii) regarding the re-3

quest, the fabric, yarn, or fiber that is the sub-4

ject of the request shall be considered to be5

added, in an unrestricted quantity, to the list in6

Annex 3-B of the Agreement beginning—7

(i) 45 days after the date on which8

the request is submitted; or9

(ii) 60 days after the date on which10

the request is submitted, if the President11

made a determination under subparagraph12

(C)(iv)(II).13

(E) REQUESTS TO RESTRICT OR REMOVE14

FABRICS, YARNS, OR FIBERS.—15

(i) IN GENERAL.—Subject to clause16

(ii), an interested entity may request the17

President to restrict the quantity of, or re-18

move from the list in Annex 3-B of the19

Agreement, any fabric, yarn, or fiber—20

(I) that has been added to that21

list in an unrestricted quantity pursu-22

ant to paragraph (2) or subparagraph23

(C)(iii) or (D) of this paragraph; or24

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(II) with respect to which the1

President has eliminated a restriction2

under subparagraph (C)(vi).3

(ii) TIME PERIOD FOR SUBMISSION.—4

An interested entity may submit a request5

under clause (i) at any time beginning on6

the date that is 6 months after the date of7

the action described in subclause (I) or (II)8

of that clause.9

(iii) PROCLAMATION AUTHORITY.—10

Not later than 30 days after the date on11

which a request under clause (i) is sub-12

mitted, the President may proclaim an ac-13

tion provided for under clause (i) if the14

President determines that the fabric, yarn,15

or fiber that is the subject of the request16

is available in commercial quantities in a17

timely manner in Colombia or the United18

States.19

(iv) EFFECTIVE DATE.—A proclama-20

tion issued under clause (iii) may not take21

effect earlier than the date that is 622

months after the date on which the text of23

the proclamation is published in the Fed-24

eral Register.25

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(F) PROCEDURES.—The President shall1

establish procedures—2

(i) governing the submission of a re-3

quest under subparagraphs (C) and (E);4

and5

(ii) providing an opportunity for inter-6

ested entities to submit comments and sup-7

porting evidence before the President8

makes a determination under subpara-9

graph (C) (ii) or (vi) or (E)(iii).10

SEC. 204. CUSTOMS USER FEES.11

Section 13031(b) of the Consolidated Omnibus Budg-12

et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is13

amended by adding after paragraph (19), the following:14

‘‘(20) No fee may be charged under subsection (a)15

(9) or (10) with respect to goods that qualify as origi-16

nating goods under section 203 of the United States–Co-17

lombia Trade Promotion Agreement Implementation Act.18

Any service for which an exemption from such fee is pro-19

vided by reason of this paragraph may not be funded with20

money contained in the Customs User Fee Account.’’.21

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SEC. 205. DISCLOSURE OF INCORRECT INFORMATION;1

FALSE CERTIFICATIONS OF ORIGIN; DENIAL2

OF PREFERENTIAL TARIFF TREATMENT.3

(a) DISCLOSURE OF INCORRECT INFORMATION.—4

Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592)5

is amended—6

(1) in subsection (c)—7

(A) by redesignating paragraph (12) as8

paragraph (13); and9

(B) by inserting after paragraph (11) the10

following new paragraph:11

‘‘(12) PRIOR DISCLOSURE REGARDING CLAIMS12

UNDER THE UNITED STATES–COLOMBIA TRADE PRO-13

MOTION AGREEMENT.—An importer shall not be14

subject to penalties under subsection (a) for making15

an incorrect claim that a good qualifies as an origi-16

nating good under section 203 of the United States–17

Colombia Trade Promotion Agreement Implementa-18

tion Act if the importer, in accordance with regula-19

tions issued by the Secretary of the Treasury,20

promptly and voluntarily makes a corrected declara-21

tion and pays any duties owing with respect to that22

good.’’; and23

(2) by adding at the end the following new sub-24

section:25

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‘‘(k) FALSE CERTIFICATIONS OF ORIGIN UNDER THE1

UNITED STATES–COLOMBIA TRADE PROMOTION AGREE-2

MENT.—3

‘‘(1) IN GENERAL.—Subject to paragraph (2),4

it is unlawful for any person to certify falsely, by5

fraud, gross negligence, or negligence, in a CTPA6

certification of origin (as defined in section 508 of7

this Act) that a good exported from the United8

States qualifies as an originating good under the9

rules of origin provided for in section 203 of the10

United States–Colombia Trade Promotion Agree-11

ment Implementation Act. The procedures and pen-12

alties of this section that apply to a violation of sub-13

section (a) also apply to a violation of this sub-14

section.15

‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF16

INCORRECT INFORMATION.—No penalty shall be im-17

posed under this subsection if, promptly after an ex-18

porter or producer that issued a CTPA certification19

of origin has reason to believe that such certification20

contains or is based on incorrect information, the ex-21

porter or producer voluntarily provides written no-22

tice of such incorrect information to every person to23

whom the certification was issued.24

•HR 3078 EH

‘‘(3) EXCEPTION.—A person shall not be con-1

sidered to have violated paragraph (1) if—2

‘‘(A) the information was correct at the3

time it was provided in a CTPA certification of4

origin but was later rendered incorrect due to5

a change in circumstances; and6

‘‘(B) the person promptly and voluntarily7

provides written notice of the change in cir-8

cumstances to all persons to whom the person9

provided the certification.’’.10

(b) DENIAL OF PREFERENTIAL TARIFF TREAT-11

MENT.—Section 514 of the Tariff Act of 1930 (19 U.S.C.12

1514) is amended by adding at the end the following new13

subsection:14

‘‘(k) DENIAL OF PREFERENTIAL TARIFF TREAT-15

MENT UNDER THE UNITED STATES–COLOMBIA TRADE16

PROMOTION AGREEMENT.—If U.S. Customs and Border17

Protection or U.S. Immigration and Customs Enforce-18

ment of the Department of Homeland Security finds indi-19

cations of a pattern of conduct by an importer, exporter,20

or producer of false or unsupported representations that21

goods qualify under the rules of origin provided for in sec-22

tion 203 of the United States–Colombia Trade Promotion23

Agreement Implementation Act, U.S. Customs and Border24

Protection, in accordance with regulations issued by the25

•HR 3078 EH

Secretary of the Treasury, may suspend preferential tariff1

treatment under the United States–Colombia Trade Pro-2

motion Agreement to entries of identical goods covered by3

subsequent representations by that importer, exporter, or4

producer until U.S. Customs and Border Protection deter-5

mines that representations of that person are in con-6

formity with such section 203.’’.7

SEC. 206. RELIQUIDATION OF ENTRIES.8

Section 520(d) of the Tariff Act of 1930 (19 U.S.C.9

1520(d)) is amended in the matter preceding paragraph10

(1)—11

(1) by striking ‘‘or’’; and12

(2) by striking ‘‘for which’’ and inserting ‘‘, or13

section 203 of the United States–Colombia Trade14

Promotion Agreement Implementation Act for15

which’’.16

SEC. 207. RECORDKEEPING REQUIREMENTS.17

Section 508 of the Tariff Act of 1930 (19 U.S.C.18

1508) is amended—19

(1) by redesignating subsection (j) as sub-20

section (k);21

(2) by inserting after subsection (i) the fol-22

lowing new subsection:23

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‘‘(j) CERTIFICATIONS OF ORIGIN FOR GOODS EX-1

PORTED UNDER THE UNITED STATES–COLOMBIA TRADE2

PROMOTION AGREEMENT.—3

‘‘(1) DEFINITIONS.—In this subsection:4

‘‘(A) RECORDS AND SUPPORTING DOCU-5

MENTS.—The term ‘records and supporting6

documents’ means, with respect to an exported7

good under paragraph (2), records and docu-8

ments related to the origin of the good, includ-9

ing—10

‘‘(i) the purchase, cost, and value of,11

and payment for, the good;12

‘‘(ii) the purchase, cost, and value of,13

and payment for, all materials, including14

indirect materials, used in the production15

of the good; and16

‘‘(iii) the production of the good in17

the form in which it was exported.18

‘‘(B) CTPA CERTIFICATION OF ORIGIN.—19

The term ‘CTPA certification of origin’ means20

the certification established under article 4.1521

of the United States–Colombia Trade Pro-22

motion Agreement that a good qualifies as an23

originating good under such Agreement.24

•HR 3078 EH

‘‘(2) EXPORTS TO COLOMBIA.—Any person who1

completes and issues a CTPA certification of origin2

for a good exported from the United States shall3

make, keep, and, pursuant to rules and regulations4

promulgated by the Secretary of the Treasury,5

render for examination and inspection all records6

and supporting documents related to the origin of7

the good (including the certification or copies there-8

of).9

‘‘(3) RETENTION PERIOD.—The person who10

issues a CTPA certification of origin shall keep the11

records and supporting documents relating to that12

certification of origin for a period of at least 5 years13

after the date on which the certification is issued.’’;14

and15

(3) in subsection (k), as so redesignated by16

striking ‘‘(h), or (i)’’ and inserting ‘‘(h), (i), or (j)’’.17

SEC. 208. ENFORCEMENT RELATING TO TRADE IN TEXTILE18

OR APPAREL GOODS.19

(a) ACTION DURING VERIFICATION.—20

(1) IN GENERAL.—If the Secretary of the21

Treasury requests the Government of Colombia to22

conduct a verification pursuant to article 3.2 of the23

Agreement for purposes of making a determination24

under paragraph (2), the President may direct the25

•HR 3078 EH

Secretary to take appropriate action described in1

subsection (b) while the verification is being con-2

ducted.3

(2) DETERMINATION.—A determination under4

this paragraph is a determination of the Secretary5

that—6

(A) an exporter or producer in Colombia is7

complying with applicable customs laws, regula-8

tions, and procedures regarding trade in textile9

or apparel goods, or10

(B) a claim that a textile or apparel good11

exported or produced by such exporter or pro-12

ducer—13

(i) qualifies as an originating good14

under section 203, or15

(ii) is a good of Colombia,16

is accurate.17

(b) APPROPRIATE ACTION DESCRIBED.—Appropriate18

action under subsection (a)(1) includes—19

(1) suspension of preferential tariff treatment20

under the Agreement with respect to—21

(A) any textile or apparel good exported or22

produced by the person that is the subject of a23

verification under subsection (a)(1) regarding24

compliance described in subsection (a)(2)(A), if25

•HR 3078 EH

the Secretary of the Treasury determines that1

there is insufficient information to support any2

claim for preferential tariff treatment that has3

been made with respect to any such good; or4

(B) the textile or apparel good for which a5

claim of preferential tariff treatment has been6

made that is the subject of a verification under7

subsection (a)(1) regarding a claim described in8

subsection (a)(2)(B), if the Secretary deter-9

mines that there is insufficient information to10

support that claim;11

(2) denial of preferential tariff treatment under12

the Agreement with respect to—13

(A) any textile or apparel good exported or14

produced by the person that is the subject of a15

verification under subsection (a)(1) regarding16

compliance described in subsection (a)(2)(A), if17

the Secretary determines that the person has18

provided incorrect information to support any19

claim for preferential tariff treatment that has20

been made with respect to any such good; or21

(B) the textile or apparel good for which a22

claim of preferential tariff treatment has been23

made that is the subject of a verification under24

subsection (a)(1) regarding a claim described in25

•HR 3078 EH

subsection (a)(2)(B), if the Secretary deter-1

mines that a person has provided incorrect in-2

formation to support that claim;3

(3) detention of any textile or apparel good ex-4

ported or produced by the person that is the subject5

of a verification under subsection (a)(1) regarding6

compliance described in subsection (a)(2)(A) or a7

claim described in subsection (a)(2)(B), if the Sec-8

retary determines that there is insufficient informa-9

tion to determine the country of origin of any such10

good; and11

(4) denial of entry into the United States of12

any textile or apparel good exported or produced by13

the person that is the subject of a verification under14

subsection (a)(1) regarding compliance described in15

subsection (a)(2)(A) or a claim described in sub-16

section (a)(2)(B), if the Secretary determines that17

the person has provided incorrect information as to18

the country of origin of any such good.19

On completion of a verification under subsection (a)(1),21

the President may direct the Secretary of the Treasury22

to take appropriate action described in subsection (d) until23

such time as the Secretary receives information sufficient24

•HR 3078 EH

to make the determination under subsection (a)(2) or until1

such earlier date as the President may direct.2

(d) APPROPRIATE ACTION DESCRIBED.—Appro-3

priate action under subsection (c) includes—4

(1) denial of preferential tariff treatment under5

the Agreement with respect to—6

(A) any textile or apparel good exported or7

produced by the person that is the subject of a8

verification under subsection (a)(1) regarding9

compliance described in subsection (a)(2)(A), if10

the Secretary of the Treasury determines that11

there is insufficient information to support, or12

that the person has provided incorrect informa-13

tion to support, any claim for preferential tariff14

treatment that has been made with respect to15

any such good; or16

(B) the textile or apparel good for which a17

claim of preferential tariff treatment has been18

made that is the subject of a verification under19

subsection (a)(1) regarding a claim described in20

subsection (a)(2)(B), if the Secretary deter-21

mines that there is insufficient information to22

support, or that a person has provided incorrect23

information to support, that claim; and24

•HR 3078 EH

(2) denial of entry into the United States of1

any textile or apparel good exported or produced by2

the person that is the subject of a verification under3

subsection (a)(1) regarding compliance described in4

subsection (a)(2)(A) or a claim described in sub-5

section (a)(2)(B), if the Secretary determines that6

there is insufficient information to determine, or7

that the person has provided incorrect information8

as to, the country of origin of any such good.9

(e) PUBLICATION OF NAME OF PERSON.—In accord-10

ance with article 3.2.6 of the Agreement, the Secretary11

of the Treasury may publish the name of any person that12

the Secretary has determined—13

(1) is engaged in circumvention of applicable14

laws, regulations, or procedures affecting trade in15

textile or apparel goods; or16

(2) has failed to demonstrate that it produces,17

or is capable of producing, textile or apparel goods.18

SEC. 209. REGULATIONS.19

The Secretary of the Treasury shall prescribe such20

regulations as may be necessary to carry out—21

(1) subsections (a) through (n) of section 203;22

(2) the amendment made by section 204; and23

(3) any proclamation issued under section24

203(o).25

•HR 3078 EH

TITLE III—RELIEF FROM1 IMPORTS2

SEC. 301. DEFINITIONS.3

In this title:4

(1) COLOMBIAN ARTICLE.—The term ‘‘Colom-5

bian article’’ means an article that qualifies as an6

originating good under section 203(b).7

(2) COLOMBIAN TEXTILE OR APPAREL ARTI-8

CLE.—The term ‘‘Colombian textile or apparel arti-9

cle’’ means a textile or apparel good (as defined in10

section 3(4)) that is a Colombian article.11

Subtitle A—Relief From Imports12 Benefitting From the Agreement13

SEC. 311. COMMENCING OF ACTION FOR RELIEF.14

(a) FILING OF PETITION.—A petition requesting ac-15

tion under this subtitle for the purpose of adjusting to16

the obligations of the United States under the Agreement17

may be filed with the Commission by an entity, including18

a trade association, firm, certified or recognized union, or19

group of workers, that is representative of an industry.20

The Commission shall transmit a copy of any petition filed21

under this subsection to the United States Trade Rep-22

resentative.23

(b) INVESTIGATION AND DETERMINATION.—Upon24

the filing of a petition under subsection (a), the Commis-25

•HR 3078 EH

sion, unless subsection (d) applies, shall promptly initiate1

an investigation to determine whether, as a result of the2

reduction or elimination of a duty provided for under the3

Agreement, a Colombian article is being imported into the4

United States in such increased quantities, in absolute5

terms or relative to domestic production, and under such6

conditions that imports of the Colombian article constitute7

a substantial cause of serious injury or threat thereof to8

the domestic industry producing an article that is like, or9

directly competitive with, the imported article.10

sions of section 202 of the Trade Act of 1974 (19 U.S.C.12

2252) apply with respect to any investigation initiated13

under subsection (b):14

(1) Paragraphs (1)(B) and (3) of subsection15

(b).16

(2) Subsection (c).17

(3) Subsection (i).18

(d) ARTICLES EXEMPT FROM INVESTIGATION.—No19

investigation may be initiated under this section with re-20

spect to any Colombian article if, after the date on which21

the Agreement enters into force, import relief has been22

provided with respect to that Colombian article under this23

subtitle.24

•HR 3078 EH

SEC. 312. COMMISSION ACTION ON PETITION.1

(a) DETERMINATION.—Not later than 120 days after2

the date on which an investigation is initiated under sec-3

tion 311(b) with respect to a petition, the Commission4

shall make the determination required under that section.5

(b) APPLICABLE PROVISIONS.—For purposes of this6

subtitle, the provisions of paragraphs (1), (2), and (3) of7

section 330(d) of the Tariff Act of 1930 (19 U.S.C.8

1330(d) (1), (2), and (3)) shall be applied with respect9

to determinations and findings made under this section10

as if such determinations and findings were made under11

section 202 of the Trade Act of 1974 (19 U.S.C. 2252).12

DETERMINATION AFFIRMATIVE.—14

(1) IN GENERAL.—If the determination made15

by the Commission under subsection (a) with respect16

to imports of an article is affirmative, or if the17

President may consider a determination of the Com-18

mission to be an affirmative determination as pro-19

vided for under paragraph (1) of section 330(d) of20

the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the21

Commission shall find, and recommend to the Presi-22

dent in the report required under subsection (d), the23

amount of import relief that is necessary to remedy24

or prevent the injury found by the Commission in25

the determination and to facilitate the efforts of the26

•HR 3078 EH

domestic industry to make a positive adjustment to1

import competition.2

(2) LIMITATION ON RELIEF.—The import relief3

recommended by the Commission under this sub-4

section shall be limited to the relief described in sec-5

tion 313(c).6

(3) VOTING; SEPARATE VIEWS.—Only those7

members of the Commission who voted in the af-8

firmative under subsection (a) are eligible to vote on9

the proposed action to remedy or prevent the injury10

found by the Commission. Members of the Commis-11

sion who did not vote in the affirmative may submit,12

in the report required under subsection (d), separate13

views regarding what action, if any, should be taken14

to remedy or prevent the injury.15

(d) REPORT TO PRESIDENT.—Not later than the16

date that is 30 days after the date on which a determina-17

tion is made under subsection (a) with respect to an inves-18

tigation, the Commission shall submit to the President a19

report that includes—20

(1) the determination made under subsection21

(a) and an explanation of the basis for the deter-22

mination;23

(2) if the determination under subsection (a) is24

affirmative, any findings and recommendations for25

•HR 3078 EH

import relief made under subsection (c) and an ex-1

planation of the basis for each recommendation; and2

(3) any dissenting or separate views by mem-3

bers of the Commission regarding the determination4

referred to in paragraph (1) and any finding or rec-5

ommendation referred to in paragraph (2).6

(e) PUBLIC NOTICE.—Upon submitting a report to7

the President under subsection (d), the Commission shall8

promptly make public the report (with the exception of9

information which the Commission determines to be con-10

fidential) and shall publish a summary of the report in11

the Federal Register.12

SEC. 313. PROVISION OF RELIEF.13

(a) IN GENERAL.—Not later than the date that is14

30 days after the date on which the President receives a15

report of the Commission in which the Commission’s de-16

termination under section 312(a) is affirmative, or which17

contains a determination under section 312(a) that the18

President considers to be affirmative under paragraph (1)19

of section 330(d) of the Tariff Act of 1930 (19 U.S.C.20

1330(d)(1)), the President, subject to subsection (b), shall21

provide relief from imports of the article that is the subject22

of such determination to the extent that the President de-23

termines necessary to remedy or prevent the injury found24

by the Commission and to facilitate the efforts of the do-25

•HR 3078 EH

mestic industry to make a positive adjustment to import1

competition.2

(b) EXCEPTION.—The President is not required to3

provide import relief under this section if the President4

determines that the provision of the import relief will not5

provide greater economic and social benefits than costs.6

(1) IN GENERAL.—The import relief that the8

President is authorized to provide under this section9

with respect to imports of an article is as follows:10

(A) The suspension of any further reduc-11

tion provided for under Annex 2.3 of the Agree-12

ment in the duty imposed on the article.13

(B) An increase in the rate of duty im-14

posed on the article to a level that does not ex-15

ceed the lesser of—16

(i) the column 1 general rate of duty17

imposed under the HTS on like articles at18

the time the import relief is provided; or19

(ii) the column 1 general rate of duty20

imposed under the HTS on like articles on21

the day before the date on which the22

Agreement enters into force.23

(2) PROGRESSIVE LIBERALIZATION.—If the pe-24

riod for which import relief is provided under this25

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section is greater than 1 year, the President shall1

provide for the progressive liberalization (described2

in article 8.2.2 of the Agreement) of such relief at3

regular intervals during the period of its application.4

(d) PERIOD OF RELIEF.—5

(1) IN GENERAL.—Subject to paragraph (2),6

any import relief that the President provides under7

this section may not be in effect for more than 28

years.9

(2) EXTENSION.—10

(A) IN GENERAL.—Subject to subpara-11

graph (C), the President, after receiving a de-12

termination from the Commission under sub-13

paragraph (B) that is affirmative, or which the14

President considers to be affirmative under15

paragraph (1) of section 330(d) of the Tariff16

Act of 1930 (19 U.S.C. 1330(d)(1)), may ex-17

tend the effective period of any import relief18

provided under this section by up to 2 years, if19

the President determines that—20

(i) the import relief continues to be21

necessary to remedy or prevent serious in-22

jury and to facilitate adjustment by the do-23

mestic industry to import competition; and24

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(ii) there is evidence that the industry1

is making a positive adjustment to import2

competition.3

(B) ACTION BY COMMISSION.—4

(i) INVESTIGATION.—Upon a petition5

on behalf of the industry concerned that is6

filed with the Commission not earlier than7

the date that is 9 months, and not later8

than the date that is 6 months, before the9

date on which any action taken under sub-10

section (a) is to terminate, the Commission11

shall conduct an investigation to determine12

whether action under this section continues13

to be necessary to remedy or prevent seri-14

ous injury and whether there is evidence15

that the industry is making a positive ad-16

justment to import competition.17

(ii) NOTICE AND HEARING.—The18

Commission shall publish notice of the19

commencement of any proceeding under20

this subparagraph in the Federal Register21

and shall, within a reasonable time there-22

after, hold a public hearing at which the23

Commission shall afford interested parties24

and consumers an opportunity to be25

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present, to present evidence, and to re-1

spond to the presentations of other parties2

and consumers, and otherwise to be heard.3

(iii) REPORT.—The Commission shall4

submit to the President a report on its in-5

vestigation and determination under this6

subparagraph not later than 60 days be-7

fore the action under subsection (a) is to8

terminate, unless the President specifies a9

different date.10

port relief provided under this section, including12

any extensions thereof, may not, in the aggre-13

gate, be in effect for more than 4 years.14

(e) RATE AFTER TERMINATION OF IMPORT RE-15

LIEF.—When import relief under this section is termi-16

nated with respect to an article—17

(1) the rate of duty on that article after such18

termination and on or before December 31 of the19

year in which such termination occurs shall be the20

rate that, according to the Schedule of the United21

States to Annex 2.3 of the Agreement, would have22

been in effect 1 year after the provision of relief23

under subsection (a); and24

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(2) the rate of duty for that article after De-1

cember 31 of the year in which such termination oc-2

curs shall be, at the discretion of the President, ei-3

ther—4

(A) the applicable rate of duty for that ar-5

ticle set forth in the Schedule of the United6

States to Annex 2.3 of the Agreement; or7

(B) the rate of duty resulting from the8

elimination of the tariff in equal annual stages9

ending on the date set forth in the Schedule of10

the United States to Annex 2.3 of the Agree-11

ment for the elimination of the tariff.12

(f) ARTICLES EXEMPT FROM RELIEF.—No import13

relief may be provided under this section on—14

(1) any article that is subject to import relief15

under—16

(A) subtitle B; or17

(B) chapter 1 of title II of the Trade Act18

of 1974 (19 U.S.C. 2251 et seq.); or19

(2) any article on which an additional duty as-20

sessed under section 202(b) is in effect.21

SEC. 314. TERMINATION OF RELIEF AUTHORITY.22

(a) GENERAL RULE.—Subject to subsection (b), no23

import relief may be provided under this subtitle after the24

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date that is 10 years after the date on which the Agree-1

ment enters into force.2

(b) EXCEPTION.—If an article for which relief is pro-3

vided under this subtitle is an article for which the period4

for tariff elimination, set forth in the Schedule of the5

United States to Annex 2.3 of the Agreement, is greater6

than 10 years, no relief under this subtitle may be pro-7

vided for that article after the date on which that period8

ends.9

SEC. 315. COMPENSATION AUTHORITY.10

For purposes of section 123 of the Trade Act of 197411

(19 U.S.C. 2133), any import relief provided by the Presi-12

dent under section 313 shall be treated as action taken13

under chapter 1 of title II of such Act (19 U.S.C. 225114

et seq.).15

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.16

Section 202(a)(8) of the Trade Act of 1974 (1917

U.S.C. 2252(a)(8)) is amended in the first sentence—18

(1) by striking ‘‘and’’; and19

(2) by inserting before the period at the end ‘‘,20

and title III of the United States–Colombia Trade21

Promotion Agreement Implementation Act’’.22

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Subtitle B—Textile and Apparel1 Safeguard Measures2

SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.3

(a) IN GENERAL.—A request for action under this4

subtitle for the purpose of adjusting to the obligations of5

the United States under the Agreement may be filed with6

the President by an interested party. Upon the filing of7

a request, the President shall review the request to deter-8

mine, from information presented in the request, whether9

to commence consideration of the request.10

(b) PUBLICATION OF REQUEST.—If the President de-11

termines that the request under subsection (a) provides12

the information necessary for the request to be considered,13

the President shall publish in the Federal Register a no-14

tice of commencement of consideration of the request, and15

notice seeking public comments regarding the request. The16

notice shall include a summary of the request and the17

dates by which comments and rebuttals must be received.18

SEC. 322. DETERMINATION AND PROVISION OF RELIEF.19

(a) DETERMINATION.—20

(1) IN GENERAL.—If a positive determination is21

made under section 321(b), the President shall de-22

termine whether, as a result of the elimination of a23

duty under the Agreement, a Colombian textile or24

apparel article is being imported into the United25

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States in such increased quantities, in absolute1

terms or relative to the domestic market for that ar-2

ticle, and under such conditions as to cause serious3

damage, or actual threat thereof, to a domestic in-4

dustry producing an article that is like, or directly5

competitive with, the imported article.6

(2) SERIOUS DAMAGE.—In making a deter-7

mination under paragraph (1), the President—8

(A) shall examine the effect of increased9

imports on the domestic industry, as reflected10

in changes in such relevant economic factors as11

output, productivity, utilization of capacity, in-12

ventories, market share, exports, wages, em-13

ployment, domestic prices, profits and losses,14

and investment, no one of which is necessarily15

decisive; and16

(B) shall not consider changes in consumer17

preference or changes in technology in the18

United States as factors supporting a deter-19

mination of serious damage or actual threat20

thereof.21

(b) PROVISION OF RELIEF.—22

(1) IN GENERAL.—If a determination under23

subsection (a) is affirmative, the President may pro-24

vide relief from imports of the article that is the25

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subject of such determination, as provided in para-1

graph (2), to the extent that the President deter-2

mines necessary to remedy or prevent the serious3

damage and to facilitate adjustment by the domestic4

industry.5

(2) NATURE OF RELIEF.—The relief that the6

President is authorized to provide under this sub-7

section with respect to imports of an article is an in-8

crease in the rate of duty imposed on the article to9

a level that does not exceed the lesser of—10

(A) the column 1 general rate of duty im-11

posed under the HTS on like articles at the12

time the import relief is provided; or13

(B) the column 1 general rate of duty im-14

posed under the HTS on like articles on the15

day before the date on which the Agreement en-16

ters into force.17

SEC. 323. PERIOD OF RELIEF.18

(a) IN GENERAL.—Subject to subsection (b), the im-19

port relief that the President provides under section20

322(b) may not be in effect for more than 2 years.21

(b) EXTENSION.—22

(1) IN GENERAL.—Subject to paragraph (2),23

the President may extend the effective period of any24

import relief provided under this subtitle for a pe-25

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riod of not more than 1 year, if the President deter-1

mines that—2

(A) the import relief continues to be nec-3

essary to remedy or prevent serious damage4

and to facilitate adjustment by the domestic in-5

dustry to import competition; and6

(B) there is evidence that the industry is7

making a positive adjustment to import com-8

petition.9

(2) LIMITATION.—Any relief provided under10

this subtitle, including any extensions thereof, may11

not, in the aggregate, be in effect for more than 312

years.13

SEC. 324. ARTICLES EXEMPT FROM RELIEF.14

The President may not provide import relief under15

this subtitle with respect to an article if—16

(1) import relief previously has been provided17

under this subtitle with respect to that article; or18

(2) the article is subject to import relief19

under—20

(A) subtitle A; or21

(B) chapter 1 of title II of the Trade Act22

of 1974 (19 U.S.C. 2251 et seq.).23

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SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.1

On the date on which import relief under this subtitle2

is terminated with respect to an article, the rate of duty3

on that article shall be the rate that would have been in4

effect but for the provision of such relief.5

SEC. 326. TERMINATION OF RELIEF AUTHORITY.6

No import relief may be provided under this subtitle7

with respect to any article after the date that is 5 years8

after the date on which the Agreement enters into force.9

SEC. 327. COMPENSATION AUTHORITY.10

For purposes of section 123 of the Trade Act of 197411

(19 U.S.C. 2133), any import relief provided by the Presi-12

dent under this subtitle shall be treated as action taken13

under chapter 1 of title II of such Act (19 U.S.C. 225114

et seq.).15

SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.16

The President may not release information received17

in connection with an investigation or determination under18

this subtitle which the President considers to be confiden-19

tial business information unless the party submitting the20

confidential business information had notice, at the time21

of submission, that such information would be released by22

the President, or such party subsequently consents to the23

release of the information. To the extent a party submits24

confidential business information, the party shall also pro-25

vide a nonconfidential version of the information in which26

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the confidential business information is summarized or, if1

necessary, deleted.2

Subtitle C—Cases Under Title II of3 the Trade Act of 19744

SEC. 331. FINDINGS AND ACTION ON COLOMBIAN ARTI-5

CLES.6

(a) EFFECT OF IMPORTS.—If, in any investigation7

initiated under chapter 1 of title II of the Trade Act of8

1974 (19 U.S.C. 2251 et seq.), the Commission makes an9

affirmative determination (or a determination which the10

President may treat as an affirmative determination under11

such chapter by reason of section 330(d) of the Tariff Act12

of 1930 (19 U.S.C. 1330(d)), the Commission shall also13

find (and report to the President at the time such injury14

determination is submitted to the President) whether im-15

ports of the Colombian article are a substantial cause of16

serious injury or threat thereof.17

(b) PRESIDENTIAL DETERMINATION REGARDING CO-18

LOMBIAN ARTICLES.—In determining the nature and ex-19

tent of action to be taken under chapter 1 of title II of20

the Trade Act of 1974 (19 U.S.C. 2251 et seq.), the Presi-21

dent may exclude from the action Colombian articles with22

respect to which the Commission has made a negative23

finding under subsection (a).24

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TITLE IV—PROCUREMENT1 SEC. 401. ELIGIBLE PRODUCTS.2

Section 308(4)(A) of the Trade Agreements Act of3

1979 (19 U.S.C. 2518(4)(A)) is amended—4

(1) by striking ‘‘or’’ at the end of clause (vii);5

(2) by striking the period at the end of clause6

(viii) and inserting ‘‘; or’’; and7

(3) by adding at the end the following new8

clause:9

‘‘(ix) a party to the United States–Co-10

lombia Trade Promotion Agreement, a11

product or service of that country or in-12

strumentality which is covered under that13

agreement for procurement by the United14

States.’’.15

TITLE V—EXTENSION OF ANDE-16 AN TRADE PREFERENCE ACT17

SEC. 501. EXTENSION OF ANDEAN TRADE PREFERENCE18

ACT.19

(a) EXTENSION.—Section 208(a) of the Andean20

Trade Preference Act (19 U.S.C. 3206(a)) is amended—21

(1) in paragraph (1)(A), by striking ‘‘February22

12, 2011’’ and inserting ‘‘July 31, 2013’’; and23

(2) in paragraph (2), by striking ‘‘February 12,24

2011’’ and inserting ‘‘July 31, 2013’’.25

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(b) TREATMENT OF CERTAIN APPAREL ARTICLES.—1

Section 204(b)(3) of the Andean Trade Preference Act2

(19 U.S.C. 3203(b)(3)) is amended—3

(1) in subparagraph (B)—4

(A) in clause (iii)—5

(i) in subclause (II), by striking ‘‘86

succeeding 1-year periods’’ and inserting7

‘‘10 succeeding 1-year periods’’; and8

(ii) in subclause (III)(bb), by striking9

‘‘and for the succeeding 3-year period’’ and10

inserting ‘‘and for the succeeding 5-year11

period’’; and12

(B) in clause (v)(II), by striking ‘‘7 suc-13

ceeding 1-year periods’’ and inserting ‘‘9 suc-14

ceeding 1-year periods’’; and15

(2) in subparagraph (E)(ii)(II), by striking16

‘‘February 12, 2011’’ and inserting ‘‘July 31,17

2013’’.18

(1) IN GENERAL.—The amendments made by20

this section shall apply to articles entered on or after21

the 15th day after the date of the enactment of this22

Act.23

(2) RETROACTIVE APPLICATION FOR CERTAIN24

LIQUIDATIONS AND RELIQUIDATIONS.—25

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(A) IN GENERAL.—Notwithstanding sec-1

tion 514 of the Tariff Act of 1930 (19 U.S.C.2

1514) or any other provision of law and subject3

to subparagraph (B), any entry of an article to4

which duty-free treatment or other preferential5

treatment under the Andean Trade Preference6

Act would have applied if the entry had been7

made on February 12, 2011, that was made—8

(i) after February 12, 2011, and9

(ii) before the 15th day after the date10

of the enactment of this Act,11

shall be liquidated or reliquidated as though12

such entry occurred on the date that is 15 days13

after the date of the enactment of this Act.14

(B) REQUESTS.—A liquidation or reliqui-15

dation may be made under subparagraph (A)16

with respect to an entry only if a request there-17

for is filed with U.S. Customs and Border Pro-18

tection not later than 180 days after the date19

of the enactment of this Act that contains suffi-20

cient information to enable U.S. Customs and21

Border Protection—22

(i) to locate the entry; or23

(ii) to reconstruct the entry if it can-24

not be located.25

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amounts owed by the United States pursuant to2

the liquidation or reliquidation of an entry of3

an article under subparagraph (A) shall be4

paid, without interest, not later than 90 days5

after the date of the liquidation or reliquidation6

(as the case may be).7

(3) DEFINITION.—As used in this subsection,8

the term ‘‘entry’’ includes a withdrawal from ware-9

house for consumption.10

TITLE VI—OFFSETS11 SEC. 601. ELIMINATION OF CERTAIN NAFTA CUSTOMS FEES12

EXEMPTION.13

(a) IN GENERAL.—Section 13031(b)(1)(A)(i) of the14

Consolidated Omnibus Budget Reconciliation Act of 198515

(19 U.S.C. 58c(b)(1)(A)(i)) is amended to read as follows:16

‘‘(i) the arrival of any passenger whose jour-17

ney—18

‘‘(I) originated in a territory or possession19

of the United States; or20

‘‘(II) originated in the United States and21

was limited to territories and possessions of the22

United States;’’.23

(b) USE OF FEES.—The fees collected as a result of24

the amendment made by this section shall be deposited25

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in the Customs User Fee Account, shall be available for1

reimbursement of customs services and inspections costs,2

and shall be available only to the extent provided in appro-3

priations Acts.4

ments made by this section shall apply to passengers arriv-6

ing from Canada, Mexico, or an adjacent island on or after7

the date that is 15 days after the date of the enactment8

of this Act.9

SEC. 602. EXTENSION OF CUSTOMS USER FEES.10

Section 13031(j)(3) of the Consolidated Omnibus11

Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3))12

is amended by adding at the end the following:13

‘‘(C)(i) Notwithstanding subparagraph (A), fees may14

be charged under paragraphs (9) and (10) of subsection15

(a) during the period beginning on August 3, 2021, and16

ending on September 30, 2021.17

‘‘(ii) Notwithstanding subparagraph (B)(i), fees may18

be charged under paragraphs (1) through (8) of sub-19

section (a) during the period beginning on December 9,20

2020, and ending on August 31, 2021.’’.21

SEC. 603. TIME FOR PAYMENT OF CORPORATE ESTIMATED22

TAXES.23

Notwithstanding section 6655 of the Internal Rev-24

enue Code of 1986, in the case of a corporation with assets25

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of not less than $1,000,000,000 (determined as of the end1

of the preceding taxable year)—2

(1) the amount of any required installment of3

corporate estimated tax which is otherwise due in4

July, August, or September of 2016 shall be in-5

creased by 0.50 percent of such amount (determined6

without regard to any increase in such amount not7

contained in such Code); and8

(2) the amount of the next required installment9

after an installment referred to in paragraph (1)10

shall be appropriately reduced to reflect the amount11

of the increase by reason of such paragraph.12

Passed the House of Representatives October 12, 2011.

Attest:

Clerk.

112 T

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United States–Colombia Trade Promotion Agreement Implementation Act, United States of America

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