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
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRI-10
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
(c) TERMINATION OF THE AGREEMENT.—On the10
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
(C) such additional duties,25
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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
(c) CONVERSION TO AD VALOREM RATES.—For pur-10
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
(C) the column 1 general rate of duty that15
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
(C) for which a claim for preferential tariff10
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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(C) in year 8 of the Agreement through1
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
(c) EXCEPTIONS.—No additional duty shall be as-13
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
(c) REGIONAL VALUE-CONTENT.—16
(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
NC
(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
(C) MOTOR VEHICLES.—9
(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
26
•HR 3078 EH
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
27
•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
28
•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
(C) in the case of a material that is self-10
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
29
•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
30
•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
31
•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
32
•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
33
•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
(C) A nonoriginating material provided for16
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
34
•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
35
•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
36
•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
(C) YARN, FABRIC, OR FIBER.—For pur-5
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
37
•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
38
•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
39
•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
40
•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
41
•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
(C) Motor vehicles for the transport of 1520
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
42
•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
43
•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
(C) Goods obtained in the territory of Co-9
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
44
•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
45
•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
46
•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
(C) spare parts and materials used in the12
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
47
•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
48
•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
49
•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
50
•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
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•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
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•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
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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
(C) REQUESTS TO ADD FABRICS, YARNS,8
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
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(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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•HR 3078 EH
(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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•HR 3078 EH
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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•HR 3078 EH
(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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•HR 3078 EH
‘‘(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
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•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
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•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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•HR 3078 EH
‘‘(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
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•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
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•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
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•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
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•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
(c) ACTION ON COMPLETION OF A VERIFICATION.—20
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
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•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
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•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
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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
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•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
(c) APPLICABLE PROVISIONS.—The following provi-11
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
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•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
(c) ADDITIONAL FINDING AND RECOMMENDATION IF13
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
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•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
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•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
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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
(c) NATURE OF RELIEF.—7
(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
(C) PERIOD OF IMPORT RELIEF.—Any im-11
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
(c) EFFECTIVE DATE.—19
(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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(C) PAYMENT OF AMOUNTS OWED.—Any1
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
(c) EFFECTIVE DATE.—This section and the amend-5
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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greem ent.