Cafta-dr Pl

PUBLIC LAW 109–53—AUG. 2, 2005

DOMINICAN REPUBLIC–CENTRAL AMERICA–
UNITED STATES FREE TRADE AGREEMENT
IMPLEMENTATION ACT

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00001

Fmt 6579

Sfmt 6579

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 462

PUBLIC LAW 109–53—AUG. 2, 2005

Public Law 109–53
109th Congress
An Act
Aug. 2, 2005
[H.R. 3045]
Dominican
Republic-Central
America-United
States Free
Trade Agreement
Implementation
Act.
19 USC 4001
note.

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

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Dominican
Republic-Central America-United States Free Trade Agreement
Implementation Act’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE
AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed
actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.
Sec.
Sec.
Sec.
Sec.
Sec.

201.
202.
203.
204.
205.

Sec. 206.
Sec.
Sec.
Sec.
Sec.

207.
208.
209.
210.

TITLE II—CUSTOMS PROVISIONS
Tariff modifications.
Additional duties on certain agricultural goods.
Rules of origin.
Customs user fees.
Retroactive application for certain liquidations and reliquidations of textile or apparel goods.
Disclosure of incorrect information; false certifications of origin; denial of
preferential tariff treatment.
Reliquidation of entries.
Recordkeeping requirements.
Enforcement relating to trade in textile or apparel goods.
Regulations.
TITLE III—RELIEF FROM IMPORTS

Sec. 301. Definitions.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

311.
312.
313.
314.
315.
316.

Subtitle A—Relief From Imports Benefiting From the Agreement
Commencing of action for relief.
Commission action on petition.
Provision of relief.
Termination of relief authority.
Compensation authority.
Confidential business information.

PO 00053

Frm 00002

Fmt 6580

Sfmt 6582

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 463

Subtitle B—Textile and Apparel Safeguard Measures
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

321.
322.
323.
324.
325.
326.
327.
328.

Commencement of action for relief.
Determination and provision of relief.
Period of relief.
Articles exempt from relief.
Rate after termination of import relief.
Termination of relief authority.
Compensation authority.
Confidential business information.
Subtitle C—Cases Under Title II of the Trade Act of 1974

Sec. 331. Findings and action on goods of CAFTA–DR countries.
TITLE IV—MISCELLANEOUS
Sec. 401. Eligible products.
Sec. 402. Modifications to the Caribbean Basin Economic Recovery Act.
Sec. 403. Periodic reports and meetings on labor obligations and labor capacitybuilding provisions.
SEC. 2. PURPOSES.

19 USC 4001.

The purposes of this Act are—
(1) to approve and implement the Free Trade Agreement
between the United States, Costa Rica, the Dominican Republic,
El Salvador, Guatemala, Honduras, and Nicaragua entered into
under the authority of section 2103(b) of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C. 3803(b));
(2) to strengthen and develop economic relations between
the United States, Costa Rica, the Dominican Republic, El
Salvador, Guatemala, Honduras, and Nicaragua for their
mutual benefit;
(3) to establish free trade between the United States, Costa
Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua through the reduction and elimination
of barriers to trade in goods and services and to investment;
and
(4) to lay the foundation for further cooperation to expand
and enhance the benefits of the Agreement.
SEC. 3. DEFINITIONS.

19 USC 4002.

In this Act:
(1) AGREEMENT.—The term ‘‘Agreement’’ means the
Dominican Republic-Central America-United States Free Trade
Agreement approved by the Congress under section 101(a)(1).
(2) CAFTA–DR COUNTRY.—Except as provided in section
203, the term ‘‘CAFTA–DR country’’ means—
(A) Costa Rica, for such time as the Agreement is
in force between the United States and Costa Rica;
(B) the Dominican Republic, for such time as the Agreement is in force between the United States and the Dominican Republic;
(C) El Salvador, for such time as the Agreement is
in force between the United States and El Salvador;
(D) Guatemala, for such time as the Agreement is
in force between the United States and Guatemala;
(E) Honduras, for such time as the Agreement is in
force between the United States and Honduras; and
(F) Nicaragua, for such time as the Agreement is in
force between the United States and Nicaragua.
(3) COMMISSION.—The term ‘‘Commission’’ means the
United States International Trade Commission.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00003

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 464

PUBLIC LAW 109–53—AUG. 2, 2005
(4) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff
Schedule of the United States.
(5) TEXTILE OR APPAREL GOOD.—The term ‘‘textile or
apparel good’’ means a good listed in the Annex to the Agreement on Textiles and Clothing referred to in section 101(d)(4)
of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)),
other than a good listed in Annex 3.29 of the Agreement.

TITLE I—APPROVAL OF, AND GENERAL
PROVISIONS
RELATING
TO,
THE
AGREEMENT
19 USC 4011.

SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.

(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRAACTION.—Pursuant to section 2105 of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C. 3805) and section
151 of the Trade Act of 1974 (19 U.S.C. 2191), the Congress
approves—
(1) the Dominican Republic-Central America-United States
Free Trade Agreement entered into on August 5, 2004, with
the Governments of Costa Rica, the Dominican Republic, El
Salvador, Guatemala, Honduras, and Nicaragua, and submitted
to the Congress on June 23, 2005; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to the Congress
on June 23, 2005.
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.—
At such time as the President determines that countries listed
in subsection (a)(1) have taken measures necessary to comply with
the provisions of the Agreement that are to take effect on the
date on which the Agreement enters into force, the President is
authorized to provide for the Agreement to enter into force with
respect to those countries that provide for the Agreement to enter
into force for them.

TIVE

19 USC 4012.

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

(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provision of the Agreement, nor the application of any such provision
to any person or circumstance, which is inconsistent with any
law of the United States shall have effect.
(2) CONSTRUCTION.—Nothing in this Act shall be
construed—
(A) to amend or modify any law of the United States,
or
(B) to limit any authority conferred under any law
of the United States,
unless specifically provided for in this Act.
(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.—
(1) LEGAL CHALLENGE.—No State law, or the application
thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application
is inconsistent with the Agreement, except in an action brought

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00004

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 465

by the United States for the purpose of declaring such law
or application invalid.
(2) DEFINITION OF STATE LAW.—For purposes of this subsection, the term ‘‘State law’’ includes—
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business
of insurance.
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES.—No person other than the United States—
(1) shall have any cause of action or defense under the
Agreement or by virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any provision of law, any action or inaction by any department, agency,
or other instrumentality of the United States, any State, or
any political subdivision of a State, on the ground that such
action or inaction is inconsistent with the Agreement.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO
FORCE AND INITIAL REGULATIONS.

(a) IMPLEMENTING ACTIONS.—
(1) PROCLAMATION AUTHORITY.—After the date of the enactment of this Act—
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations,
as may be necessary to ensure that any provision of this Act,
or amendment made by this Act, that takes effect on the
date the Agreement enters into force is appropriately implemented on such date, but no such proclamation or regulation
may have an effective date earlier than the date the Agreement
enters into force.
(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.—
Any action proclaimed by the President under the authority
of this Act that is not subject to the consultation and layover
provisions under section 104 may not take effect before the
15th day after the date on which the text of the proclamation
is published in the Federal Register.
(3) WAIVER OF 15-DAY RESTRICTION.—The 15-day restriction
contained in paragraph (2) on the taking effect of proclaimed
actions is waived to the extent that the application of such
restriction would prevent the taking effect on the date the
Agreement enters into force of any action proclaimed under
this section.
(b) INITIAL REGULATIONS.—Initial regulations necessary or
appropriate to carry out the actions required by or authorized
under this Act or proposed in the statement of administrative
action submitted under section 101(a)(2) to implement the Agreement shall, to the maximum extent feasible, be issued within 1
year after the date on which the Agreement enters into force.
In the case of any implementing action that takes effect on a
date after the date on which the Agreement enters into force,
initial regulations to carry out that action shall, to the maximum
extent feasible, be issued within 1 year after such effective date.
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE OF, PROCLAIMED ACTIONS.

19 USC 4013.

Federal Register,
publication.

Deadlines.

President.
19 USC 4014.

If a provision of this Act provides that the implementation
of an action by the President by proclamation is subject to the

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00005

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 466

Reports.

PUBLIC LAW 109–53—AUG. 2, 2005

consultation and layover requirements of this section, such action
may be proclaimed only if—
(1) the President has obtained advice regarding the proposed action from—
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155); and
(B) the Commission;
(2) the President has submitted to the Committee on
Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report that sets forth—
(A) the action proposed to be proclaimed and the reasons therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first
day on which the requirements set forth in paragraphs (1)
and (2) have been met has expired; and
(4) the President has consulted with such Committees
regarding the proposed action during the period referred to
in paragraph (3).

19 USC 4015.

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

President.

(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—The President
is authorized to establish or designate within the Department of
Commerce an office that shall be responsible for providing administrative assistance to panels established under chapter 20 of the
Agreement. The office may not be considered to be an agency
for purposes of section 552 of title 5, United States Code.
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated for each fiscal year after fiscal year 2005 to
the Department of Commerce such sums as may be necessary
for the establishment and operations of the office established or
designated under subsection (a) and for the payment of the United
States share of the expenses of panels established under chapter
20 of the Agreement.

19 USC 4016.

SEC. 106. ARBITRATION OF CLAIMS.

The United States is authorized to resolve any claim against
the United States covered by article 10.16.1(a)(i)(C) or article
10.16.1(b)(i)(C) of the Agreement, pursuant to the Investor-State
Dispute Settlement procedures set forth in section B of chapter
10 of the Agreement.
19 USC 4001
note.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

(a) EFFECTIVE DATES.—Except as provided in subsection (b),
the provisions of this Act and the amendments made by this Act
take effect on the date the Agreement enters into force.
(b) EXCEPTIONS.—Sections 1 through 3 and this title take effect
on the date of the enactment of this Act.
(c) TERMINATION OF CAFTA–DR STATUS.—During any period
in which a country ceases to be a CAFTA–DR country, the provisions of this Act (other than this subsection) and the amendments
made by this Act shall cease to have effect with respect to that
country.
(d) TERMINATION OF THE AGREEMENT.—On the date on which
the Agreement ceases to be in force with respect to the United
States, the provisions of this Act (other than this subsection) and
the amendments made by this Act shall cease to have effect.

Jkt 039139

PO 00053

Frm 00006

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 467

TITLE II—CUSTOMS PROVISIONS
SEC. 201. TARIFF MODIFICATIONS.

19 USC 4031.

(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.—
(1) PROCLAMATION AUTHORITY.—The President may proclaim—
(A) such modifications or continuation of any duty,
(B) such continuation of duty-free or excise treatment,
or
(C) such additional duties,
as the President determines to be necessary or appropriate
to carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27,
and 3.28, and Annexes 3.3, 3.27, and 3.28 of the Agreement.
(2) EFFECT ON GSP STATUS.—Notwithstanding section
502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the
President shall terminate the designation of each CAFTA–
DR country as a beneficiary developing country for purposes
of title V of the Trade Act of 1974 on the date the Agreement
enters into force with respect to that country.
(3) EFFECT ON CBERA STATUS.—
(A) IN GENERAL.—Notwithstanding section 212(a) of
the Caribbean Basin Economic Recovery Act (19 U.S.C.
2702(a)), the President shall terminate the designation of
each CAFTA–DR country as a beneficiary country for purposes of that Act on the date the Agreement enters into
force with respect to that country.
(B) EXCEPTION.—Notwithstanding subparagraph (A),
each such country shall be considered a beneficiary country
under section 212(a) of the Caribbean Basin Economic
Recovery Act, for purposes of—
(i) sections 771(7)(G)(ii)(III) and 771(7)(H) of the
Tariff Act of 1930 (19 U.S.C. 1677(7)(G)(ii)(III) and
1677(7)(H));
(ii) the duty-free treatment provided under paragraph 12 of Appendix I of the General Notes to the
Schedule of the United States to Annex 3.3 of the
Agreement; and
(iii) section 274(h)(6)(B) of the Internal Revenue
Code of 1986.
(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation
and layover provisions of section 104, the President may proclaim—
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree
to with a CAFTA–DR country regarding the staging of any
duty treatment set forth in Annex 3.3 of the Agreement,
(3) such continuation of duty-free or excise treatment, or
(4) such additional duties,
as the President determines to be necessary or appropriate to
maintain the general level of reciprocal and mutually advantageous
concessions provided for by the Agreement.
(c) CONVERSION TO AD VALOREM RATES.—For purposes of subsections (a) and (b), with respect to any good for which the base
rate in the Schedule of the United States to Annex 3.3 of the
Agreement is a specific or compound rate of duty, the President
may substitute for the base rate an ad valorem rate that the
President determines to be equivalent to the base rate.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00007

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

President.

President.

APPS06

PsN: PUBL053

119 STAT. 468
19 USC 4032.

SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

(a) GENERAL PROVISIONS.—
(1) APPLICABILITY OF SUBSECTION.—This subsection applies
to additional duties assessed under subsection (b).
(2) APPLICABLE NTR (MFN) RATE OF DUTY.—For purposes
of subsection (b), the term ‘‘applicable NTR (MFN) rate of
duty’’ means, with respect to a safeguard good, a rate of duty
that is the lesser of—
(A) the column 1 general rate of duty that would,
at the time the additional duty is imposed under subsection
(b), apply to a good classifiable in the same 8-digit subheading of the HTS as the safeguard good; or
(B) the column 1 general rate of duty that would,
on the day before the date on which the Agreement enters
into force, apply to a good classifiable in the same 8digit subheading of the HTS as the safeguard good.
(3) SCHEDULE RATE OF DUTY.—For purposes of subsection
(b), the term ‘‘schedule rate of duty’’ means, with respect to
a safeguard good, the rate of duty for that good that is set
out in the Schedule of the United States to Annex 3.3 of
the Agreement.
(4) SAFEGUARD GOOD.—In this section, the term ‘‘safeguard
good’’ means a good—
(A) that is included in the Schedule of the United
States to Annex 3.15 of the Agreement;
(B) that qualifies as an originating good under section
203, except that operations performed in or material
obtained from the United States shall be considered as
if the operations were performed in, and the material was
obtained from, a country that is not a party to the Agreement; and
(C) for which a claim for preferential tariff treatment
under the Agreement has been made.
(5) EXCEPTIONS.—No additional duty shall be assessed on
a good under subsection (b) if, at the time of entry, the good
is subject to import relief under—
(A) subtitle A of title III of this Act; or
(B) chapter 1 of title II of the Trade Act of 1974
(19 U.S.C. 2251 et seq.).
(6) TERMINATION.—The assessment of an additional duty
on a good under subsection (b) shall cease to apply to that
good on the date on which duty-free treatment must be provided
to that good under the Schedule of the United States to Annex
3.3 of the Agreement.
(7) NOTICE.—Not later than 60 days after the Secretary
of the Treasury first assesses an additional duty in a calendar
year on a good under subsection (b), the Secretary shall notify
the country whose good is subject to the additional duty in
writing of such action and shall provide to that country data
supporting the assessment of the additional duty.
(b) ADDITIONAL DUTIES ON SAFEGUARD GOODS.—
(1) IN GENERAL.—In addition to any duty proclaimed under
subsection (a) or (b) of section 201, and subject to subsection
(a), the Secretary of the Treasury shall assess a duty, in the
amount determined under paragraph (2), on a safeguard good
of a CAFTA–DR country imported into the United States in
a calendar year if the Secretary determines that, prior to such

Deadline.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

PUBLIC LAW 109–53—AUG. 2, 2005

Jkt 039139

PO 00053

Frm 00008

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 469

importation, the total volume of that safeguard good of such
country that is imported into the United States in that calendar
year exceeds 130 percent of the volume that is set out for
that safeguard good in the corresponding year in the table
for that country contained in Appendix I of the General Notes
to the Schedule of the United States to Annex 3.3 of the
Agreement. For purposes of this subsection, year 1 in that
table corresponds to the calendar year in which the Agreement
enters into force.
(2) CALCULATION OF ADDITIONAL DUTY.—The additional
duty on a safeguard good under this subsection shall be—
(A) in the case of a good classified under subheading
1202.10.80, 1202.20.80, 2008.11.15, 2008.11.35, or
2008.11.60 of the HTS—
(i) in years 1 through 5, an amount equal to 100
percent of the excess of the applicable NTR (MFN)
rate of duty over the schedule rate of duty;
(ii) in years 6 through 10, an amount equal to
75 percent of the excess of the applicable NTR (MFN)
rate of duty over the schedule rate of duty; and
(iii) in years 11 through 14, an amount equal to
50 percent of the excess of the applicable NTR (MFN)
rate of duty over the schedule rate of duty; and
(B) in the case of any other safeguard good—
(i) in years 1 through 14, an amount equal to
100 percent of the excess of the applicable NTR (MFN)
rate of duty over the schedule rate of duty;
(ii) in years 15 through 17, an amount equal to
75 percent of the excess of the applicable NTR (MFN)
rate of duty over the schedule rate of duty; and
(iii) in years 18 and 19, an amount equal to 50
percent of the excess of the applicable NTR (MFN)
rate of duty over the schedule rate of duty.
SEC. 203. RULES OF ORIGIN.

19 USC 4033.

(a) APPLICATION AND INTERPRETATION.—In this section:
(1) TARIFF CLASSIFICATION.—The basis for any tariff classification is the HTS.
(2) REFERENCE TO HTS.—Whenever in this section there
is a reference to a chapter, heading, or subheading, such reference shall be a reference to a chapter, heading, or subheading
of the HTS.
(3) COST OR VALUE.—Any cost or value referred to in this
section shall be recorded and maintained in accordance with
the generally accepted accounting principles applicable in the
territory of the country in which the good is produced (whether
the United States or another CAFTA–DR country).
(b) ORIGINATING GOODS.—For purposes of this Act and for
purposes of implementing the preferential tariff treatment provided
for under the Agreement, except as otherwise provided in this
section, a good is an originating good if—
(1) the good is a good wholly obtained or produced entirely
in the territory of one or more of the CAFTA–DR countries;
(2) the good—
(A) is produced entirely in the territory of one or more
of the CAFTA–DR countries, and—

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00009

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 470

PUBLIC LAW 109–53—AUG. 2, 2005
(i) each of the nonoriginating materials used in
the production of the good undergoes an applicable
change in tariff classification specified in Annex 4.1
of the Agreement; or
(ii) the good otherwise satisfies any applicable
regional value-content or other requirements specified
in Annex 4.1 of the Agreement; and
(B) satisfies all other applicable requirements of this
section; or
(3) the good is produced entirely in the territory of one
or more of the CAFTA–DR countries, exclusively from materials
described in paragraph (1) or (2).
(c) REGIONAL VALUE-CONTENT.—
(1) IN GENERAL.—For purposes of subsection (b)(2), the
regional value-content of a good referred to in Annex 4.1 of
the Agreement, except for goods to which paragraph (4) applies,
shall be calculated by the importer, exporter, or producer of
the good, on the basis of the build-down method described
in paragraph (2) or the build-up method described in paragraph
(3).
(2) BUILD-DOWN METHOD.—
(A) IN GENERAL.—The regional value-content of a good
may be calculated on the basis of the following builddown method:
RVC

AV

= ———— × 100
AV–VNM

(B) DEFINITIONS.—In subparagraph (A):
(i) RVC.—The term ‘‘RVC’’ means the regional
value-content of the good, expressed as a percentage.
(ii) AV.—The term ‘‘AV’’ means the adjusted value
of the good.
(iii) VNM.—The term ‘‘VNM’’ means the value of
nonoriginating materials that are acquired and used
by the producer in the production of the good, but
does not include the value of a material that is selfproduced.
(3) BUILD-UP METHOD.—
(A) IN GENERAL.—The regional value-content of a good
may be calculated on the basis of the following buildup method:
RVC

AV

= ———— × 100
VOM

(B) DEFINITIONS.—In subparagraph (A):
(i) RVC.—The term ‘‘RVC’’ means the regional
value-content of the good, expressed as a percentage.
(ii) AV.—The term ‘‘AV’’ means the adjusted value
of the good.
(iii) VOM.—The term ‘‘VOM’’ means the value of
originating materials that are acquired or self-produced, and used by the producer in the production
of the good.
(4) SPECIAL RULE FOR CERTAIN AUTOMOTIVE GOODS.—

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00010

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 471

(A) IN GENERAL.—For purposes of subsection (b)(2),
the regional value-content of an automotive good referred
to in Annex 4.1 of the Agreement may be calculated by
the importer, exporter, or producer of the good, on the
basis of the following net cost method:
NC

RVC

= ———— × 100
NC–VNM

(B) DEFINITIONS.—In subparagraph (A):
(i) AUTOMOTIVE GOOD.—The term ‘‘automotive
good’’ means a good provided for in any of subheadings
8407.31 through 8407.34, subheading 8408.20, heading
8409, or in any of headings 8701 through 8708.
(ii) RVC.—The term ‘‘RVC’’ means the regional
value-content of the automotive good, expressed as a
percentage.
(iii) NC.—The term ‘‘NC’’ means the net cost of
the automotive good.
(iv) VNM.—The term ‘‘VNM’’ means the value of
nonoriginating materials that are acquired and used
by the producer in the production of the automotive
good, but does not include the value of a material
that is self-produced.
(C) MOTOR VEHICLES.—
(i) BASIS OF CALCULATION.—For purposes of determining the regional value-content under subparagraph
(A) for an automotive good that is a motor vehicle
provided for in any of headings 8701 through 8705,
an importer, exporter, or producer may average the
amounts calculated under the formula contained in
subparagraph (A), over the producer’s fiscal year—
(I) with respect to all motor vehicles in any
1 of the categories described in clause (ii); or
(II) with respect to all motor vehicles in any
such category that are exported to the territory
of one or more of the CAFTA–DR countries.
(ii) CATEGORIES.—A category is described in this
clause if it—
(I) is the same model line of motor vehicles,
is in the same class of vehicles, and is produced
in the same plant in the territory of a CAFTA–
DR country, as the good described in clause (i)
for which regional value-content is being calculated;
(II) is the same class of motor vehicles, and
is produced in the same plant in the territory
of a CAFTA–DR country, as the good described
in clause (i) for which regional value-content is
being calculated; or
(III) is the same model line of motor vehicles
produced in the territory of a CAFTA–DR country
as the good described in clause (i) for which
regional value-content is being calculated.
(D) OTHER AUTOMOTIVE GOODS.—For purposes of determining the regional value-content under subparagraph (A)
for automotive goods provided for in any of subheadings

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00011

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 472

PUBLIC LAW 109–53—AUG. 2, 2005
8407.31 through 8407.34, in subheading 8408.20, or in
heading 8409, 8706, 8707, or 8708, that are produced in
the same plant, an importer, exporter, or producer may—
(i) average the amounts calculated under the formula contained in subparagraph (A) over—
(I) the fiscal year of the motor vehicle producer
to whom the automotive goods are sold,
(II) any quarter or month, or
(III) its own fiscal year,
if the goods were produced during the fiscal year,
quarter, or month that is the basis for the calculation;
(ii) determine the average referred to in clause
(i) separately for such goods sold to 1 or more motor
vehicle producers; or
(iii) make a separate determination under clause
(i) or (ii) for automotive goods that are exported to
the territory of one or more of the CAFTA–DR countries.
(E) CALCULATING NET COST.—The importer, exporter,
or producer shall, consistent with the provisions regarding
allocation of costs set out in generally accepted accounting
principles, determine the net cost of an automotive good
under subparagraph (B) by—
(i) calculating the total cost incurred with respect
to all goods produced by the producer of the automotive
good, subtracting any sales promotion, marketing and
after-sales service costs, royalties, shipping and
packing costs, and nonallowable interest costs that are
included in the total cost of all such goods, and then
reasonably allocating the resulting net cost of those
goods to the automotive good;
(ii) calculating the total cost incurred with respect
to all goods produced by that producer, reasonably
allocating the total cost to the automotive good, and
then subtracting any sales promotion, marketing and
after-sales service costs, royalties, shipping and
packing costs, and nonallowable interest costs that are
included in the portion of the total cost allocated to
the automotive good; or
(iii) reasonably allocating each cost that forms part
of the total cost incurred with respect to the automotive
good so that the aggregate of all such costs does not
include any sales promotion, marketing and after-sales
service costs, royalties, shipping and packing costs,
or nonallowable interest costs.
(d) VALUE OF MATERIALS.—
(1) IN GENERAL.—For the purpose of calculating the
regional value-content of a good under subsection (c), and for
purposes of applying the de minimis rules under subsection
(f), the value of a material is—
(A) in the case of a material that is imported by the
producer of the good, the adjusted value of the material;
(B) in the case of a material acquired in the territory
in which the good is produced, the value, determined in
accordance with Articles 1 through 8, Article 15, and the
corresponding interpretive notes of the Agreement on
Implementation of Article VII of the General Agreement

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00012

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 473

on Tariffs and Trade 1994 referred to in section 101(d)(8)
of the Uruguay Round Agreements Act, as set forth in
regulations promulgated by the Secretary of the Treasury
providing for the application of such Articles in the absence
of an importation; or
(C) in the case of a material that is self-produced,
the sum of—
(i) all expenses incurred in the production of the
material, including general expenses; and
(ii) an amount for profit equivalent to the profit
added in the normal course of trade.
(2) FURTHER ADJUSTMENTS TO THE VALUE OF MATERIALS.—
(A) ORIGINATING MATERIAL.—The following expenses,
if not included in the value of an originating material
calculated under paragraph (1), may be added to the value
of the originating material:
(i) The costs of freight, insurance, packing, and
all other costs incurred in transporting the material
within or between the territory of one or more of the
CAFTA–DR countries to the location of the producer.
(ii) Duties, taxes, and customs brokerage fees on
the material paid in the territory of one or more of
the CAFTA–DR countries, other than duties or taxes
that are waived, refunded, refundable, or otherwise
recoverable, including credit against duty or tax paid
or payable.
(iii) The cost of waste and spoilage resulting from
the use of the material in the production of the good,
less the value of renewable scrap or byproducts.
MATERIAL.—The
following
(B)
NONORIGINATING
expenses, if included in the value of a nonoriginating material calculated under paragraph (1), may be deducted from
the value of the nonoriginating material:
(i) The costs of freight, insurance, packing, and
all other costs incurred in transporting the material
within or between the territory of one or more of the
CAFTA–DR countries to the location of the producer.
(ii) Duties, taxes, and customs brokerage fees on
the material paid in the territory of one or more of
the CAFTA–DR countries, other than duties or taxes
that are waived, refunded, refundable, or otherwise
recoverable, including credit against duty or tax paid
or payable.
(iii) The cost of waste and spoilage resulting from
the use of the material in the production of the good,
less the value of renewable scrap or byproducts.
(iv) The cost of originating materials used in the
production of the nonoriginating material in the territory of one or more of the CAFTA–DR countries.
(e) ACCUMULATION.—
(1) ORIGINATING MATERIALS USED IN PRODUCTION OF GOODS
OF ANOTHER COUNTRY.—Originating materials from the territory of one or more of the CAFTA–DR countries that are used
in the production of a good in the territory of another CAFTA–
DR country shall be considered to originate in the territory
of that other country.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00013

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 474

PUBLIC LAW 109–53—AUG. 2, 2005
(2) MULTIPLE PROCEDURES.—A good that is produced in
the territory of one or more of the CAFTA–DR countries by
1 or more producers is an originating good if the good satisfies
the requirements of subsection (b) and all other applicable
requirements of this section.
(f) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.—
(1) IN GENERAL.—Except as provided in paragraphs (2)
and (3), a good that does not undergo a change in tariff classification pursuant to Annex 4.1 of the Agreement is an originating good if—
(A) the value of all nonoriginating materials that—
(i) are used in the production of the good, and
(ii) do not undergo the applicable change in tariff
classification (set out in Annex 4.1 of the Agreement),
does not exceed 10 percent of the adjusted value of the
good;
(B) the good meets all other applicable requirements
of this section; and
(C) the value of such nonoriginating materials is
included in the value of nonoriginating materials for any
applicable regional value-content requirement for the good.
(2) EXCEPTIONS.—Paragraph (1) does not apply to the following:
(A) A nonoriginating material provided for in chapter
4, or a nonoriginating dairy preparation containing over
10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, that is used in the production
of a good provided for in chapter 4.
(B) A nonoriginating material provided for in chapter
4, or a nonoriginating dairy preparation containing over
10 percent by weight of milk solids provided for in subheading 1901.90, that is used in the production of the
following goods:
(i) Infant preparations containing over 10 percent
by weight of milk solids provided for in subheading
1901.10.
(ii) Mixes and doughs, containing over 25 percent
by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20.
(iii) Dairy preparations containing over 10 percent
by weight of milk solids provided for in subheading
1901.90 or 2106.90.
(iv) Goods provided for in heading 2105.
(v) Beverages containing milk provided for in subheading 2202.90.
(vi) Animal feeds containing over 10 percent by
weight of milk solids provided for in subheading
2309.90.
(C) A nonoriginating material provided for in heading
0805, or any of subheadings 2009.11 through 2009.39, that
is used in the production of a good provided for in any
of subheadings 2009.11 through 2009.39, or in fruit or
vegetable juice of any single fruit or vegetable, fortified
with minerals or vitamins, concentrated or unconcentrated,
provided for in subheading 2106.90 or 2202.90.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00014

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 475

(D) A nonoriginating material provided for in heading
0901 or 2101 that is used in the production of a good
provided for in heading 0901 or 2101.
(E) A nonoriginating material provided for in heading
1006 that is used in the production of a good provided
for in heading 1102 or 1103 or subheading 1904.90.
(F) A nonoriginating material provided for in chapter
15 that is used in the production of a good provided for
in chapter 15.
(G) A nonoriginating material provided for in heading
1701 that is used in the production of a good provided
for in any of headings 1701 through 1703.
(H) A nonoriginating material provided for in chapter
17 that is used in the production of a good provided for
in subheading 1806.10.
(I) Except as provided in subparagraphs (A) through
(H) and Annex 4.1 of the Agreement, a nonoriginating
material used in the production of a good provided for
in any of chapters 1 through 24, unless the nonoriginating
material is provided for in a different subheading than
the good for which origin is being determined under this
section.
(3) TEXTILE OR APPAREL GOODS.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), a textile or apparel good that is not an originating
good because certain fibers or yarns used in the production
of the component of the good that determines the tariff
classification of the good do not undergo an applicable
change in tariff classification, set out in Annex 4.1 of the
Agreement, shall be considered to be an originating good
if—
(i) the total weight of all such fibers or yarns
in that component is not more than 10 percent of
the total weight of that component; or
(ii) the yarns are those described in section
204(b)(3)(B)(vi)(IV) of the Andean Trade Preference Act
(19 U.S.C. 3203(b)(3)(B)(vi)(IV))(as in effect on the date
of the enactment of this Act).
(B) CERTAIN TEXTILE OR APPAREL GOODS.—A textile
or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification
of the good shall be considered to be an originating good
only if such yarns are wholly formed in the territory of
a CAFTA–DR country.
(C) YARN, FABRIC, OR FIBER.—For purposes of this paragraph, in the case of a good that is a yarn, fabric, or
fiber, the term ‘‘component of the good that determines
the tariff classification of the good’’ means all of the fibers
in the good.
(g) FUNGIBLE GOODS AND MATERIALS.—
(1) IN GENERAL.—
(A) CLAIM FOR PREFERENTIAL TARIFF TREATMENT.—A
person claiming that a fungible good or fungible material
is an originating good may base the claim either on the
physical segregation of the fungible good or fungible material or by using an inventory management method with
respect to the fungible good or fungible material.

VerDate 14-DEC-2004

05:14 Aug 25, 2005

Jkt 039139

PO 00053

Frm 00015

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

SWEST

PsN: PUBL053

119 STAT. 476

Applicability.

VerDate 14-DEC-2004

05:14 Aug 25, 2005

PUBLIC LAW 109–53—AUG. 2, 2005

(B) INVENTORY MANAGEMENT METHOD.—In this subsection, the term ‘‘inventory management method’’ means—
(i) averaging;
(ii) ‘‘last-in, first-out’’;
(iii) ‘‘first-in, first-out’’; or
(iv) any other method—
(I) recognized in the generally accepted
accounting principles of the CAFTA–DR country
in which the production is performed; or
(II) otherwise accepted by that country.
(2) ELECTION OF INVENTORY METHOD.—A person selecting
an inventory management method under paragraph (1) for
a particular fungible good or fungible material shall continue
to use that method for that fungible good or fungible material
throughout the fiscal year of that person.
(h) ACCESSORIES, SPARE PARTS, OR TOOLS.—
(1) IN GENERAL.—Subject to paragraphs (2) and (3), accessories, spare parts, or tools delivered with a good that form
part of the good’s standard accessories, spare parts, or tools
shall—
(A) be treated as originating goods if the good is an
originating good; and
(B) be disregarded in determining whether all the nonoriginating materials used in the production of the good
undergo the applicable change in tariff classification set
out in Annex 4.1 of the Agreement.
(2) CONDITIONS.—Paragraph (1) shall apply only if—
(A) the accessories, spare parts, or tools are classified
with and not invoiced separately from the good, regardless
of whether they appear specified or separately identified
in the invoice for the good; and
(B) the quantities and value of the accessories, spare
parts, or tools are customary for the good.
(3) REGIONAL VALUE-CONTENT.—If the good is subject to
a regional value-content requirement, the value of the accessories, spare parts, or tools shall be taken into account as
originating or nonoriginating materials, as the case may be,
in calculating the regional value-content of the good.
(i) PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE.—
Packaging materials and containers in which a good is packaged
for retail sale, if classified with the good, shall be disregarded
in determining whether all the nonoriginating materials used in
the production of the good undergo the applicable change in tariff
classification set out in Annex 4.1 of the Agreement, and, if the
good is subject to a regional value-content requirement, the value
of such packaging materials and containers shall be taken into
account as originating or nonoriginating materials, as the case
may be, in calculating the regional value-content of the good.
(j) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.—
Packing materials and containers for shipment shall be disregarded
in determining whether a good is an originating good.
(k) INDIRECT MATERIALS.—An indirect material shall be treated
as an originating material without regard to where it is produced.
(l) TRANSIT AND TRANSHIPMENT.—A good that has undergone
production necessary to qualify as an originating good under subsection (b) shall not be considered to be an originating good if,
subsequent to that production, the good—

Jkt 039139

PO 00053

Frm 00016

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

SWEST

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 477

(1) undergoes further production or any other operation
outside the territories of the CAFTA–DR countries, other than
unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to
the territory of a CAFTA–DR country; or
(2) does not remain under the control of customs authorities
in the territory of a country other than a CAFTA–DR country.
(m) GOODS CLASSIFIABLE AS GOODS PUT UP IN SETS.—Notwithstanding the rules set forth in Annex 4.1 of the Agreement, goods
classifiable as goods put up in sets for retail sale as provided
for in General Rule of Interpretation 3 of the HTS shall not be
considered to be originating goods unless—
(1) each of the goods in the set is an originating good;
or
(2) the total value of the nonoriginating goods in the set
does not exceed—
(A) in the case of textile or apparel goods, 10 percent
of the adjusted value of the set; or
(B) in the case of a good, other than a textile or
apparel good, 15 percent of the adjusted value of the set.
(n) DEFINITIONS.—In this section:
(1) ADJUSTED VALUE.—The term ‘‘adjusted value’’ means
the value determined in accordance with Articles 1 through
8, Article 15, and the corresponding interpretive notes of the
Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 referred to in section
101(d)(8) of the Uruguay Round Agreements Act, adjusted,
if necessary, to exclude any costs, charges, or expenses incurred
for transportation, insurance, and related services incident to
the international shipment of the merchandise from the country
of exportation to the place of importation.
(2) CAFTA–DR COUNTRY.—The term ‘‘CAFTA–DR country’’
means—
(A) the United States; and
(B) Costa Rica, the Dominican Republic, El Salvador,
Guatemala, Honduras, or Nicaragua, for such time as the
Agreement is in force between the United States and that
country.
(3) CLASS OF MOTOR VEHICLES.—The term ‘‘class of motor
vehicles’’ means any one of the following categories of motor
vehicles:
(A) Motor vehicles provided for in subheading 8701.20,
8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading
8705 or 8706, or motor vehicles for the transport of 16
or more persons provided for in subheading 8702.10 or
8702.90.
(B) Motor vehicles provided for in subheading 8701.10
or any of subheadings 8701.30 through 8701.90.
(C) Motor vehicles for the transport of 15 or fewer
persons provided for in subheading 8702.10 or 8702.90,
or motor vehicles provided for in subheading 8704.21 or
8704.31.
(D) Motor vehicles provided for in any of subheadings
8703.21 through 8703.90.
(4) FUNGIBLE GOOD OR FUNGIBLE MATERIAL.—The term
‘‘fungible good’’ or ‘‘fungible material’’ means a good or material,
as the case may be, that is interchangeable with another good

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00017

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 478

PUBLIC LAW 109–53—AUG. 2, 2005
or material for commercial purposes and the properties of which
are essentially identical to such other good or material.
(5) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.—The
term ‘‘generally accepted accounting principles’’ means the recognized consensus or substantial authoritative support in the
territory of a CAFTA–DR country with respect to the recording
of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements.
The principles may encompass broad guidelines of general
application as well as detailed standards, practices, and procedures.
(6) GOODS WHOLLY OBTAINED OR PRODUCED ENTIRELY IN
THE TERRITORY OF ONE OR MORE OF THE CAFTA–DR COUNTRIES.—
The term ‘‘goods wholly obtained or produced entirely in the
territory of one or more of the CAFTA–DR countries’’ means—
(A) plants and plant products harvested or gathered
in the territory of one or more of the CAFTA–DR countries;
(B) live animals born and raised in the territory of
one or more of the CAFTA–DR countries;
(C) goods obtained in the territory of one or more
of the CAFTA–DR countries from live animals;
(D) goods obtained from hunting, trapping, fishing or
aquaculture conducted in the territory of one or more of
the CAFTA–DR countries;
(E) minerals and other natural resources not included
in subparagraphs (A) through (D) that are extracted or
taken in the territory of one or more of the CAFTA–DR
countries;
(F) fish, shellfish, and other marine life taken from
the sea, seabed, or subsoil outside the territory of one
or more of the CAFTA–DR countries by vessels registered
or recorded with a CAFTA–DR country and flying the
flag of that country;
(G) goods produced on board factory ships from the
goods referred to in subparagraph (F), if such factory ships
are registered or recorded with that CAFTA–DR country
and fly the flag of that country;
(H) goods taken by a CAFTA–DR country or a person
of a CAFTA–DR country from the seabed or subsoil outside
territorial waters, if a CAFTA–DR country has rights to
exploit such seabed or subsoil;
(I) goods taken from outer space, if the goods are
obtained by a CAFTA–DR country or a person of a CAFTA–
DR country and not processed in the territory of a country
other than a CAFTA–DR country;
(J) waste and scrap derived from—
(i) manufacturing or processing operations in the
territory of one or more of the CAFTA–DR countries;
or
(ii) used goods collected in the territory of one
or more of the CAFTA–DR countries, if such goods
are fit only for the recovery of raw materials;
(K) recovered goods derived in the territory of one
or more of the CAFTA–DR countries from used goods,
and used in the territory of a CAFTA–DR country in the
production of remanufactured goods; and

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00018

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 479

(L) goods produced in the territory of one or more
of the CAFTA–DR countries exclusively from—
(i) goods referred to in any of subparagraphs (A)
through (J), or
(ii) the derivatives of goods referred to in clause
(i),
at any stage of production.
(7) IDENTICAL GOODS.—The term ‘‘identical goods’’ means
identical goods as defined in the Agreement on Implementation
of Article VII of the General Agreement on Tariffs and Trade
1994 referred to in section 101(d)(8) of the Uruguay Round
Agreements Act;
(8) INDIRECT MATERIAL.—The term ‘‘indirect material’’
means a good used in the production, testing, or inspection
of a good but not physically incorporated into the good, or
a good used in the maintenance of buildings or the operation
of equipment associated with the production of a good,
including—
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the maintenance
of equipment or buildings;
(D) lubricants, greases, compounding materials, and
other materials used in production or used to operate equipment or buildings;
(E) gloves, glasses, footwear, clothing, safety equipment, and supplies;
(F) equipment, devices, and supplies used for testing
or inspecting the good;
(G) catalysts and solvents; and
(H) any other goods that are not incorporated into
the good but the use of which in the production of the
good can reasonably be demonstrated to be a part of that
production.
(9) MATERIAL.—The term ‘‘material’’ means a good that
is used in the production of another good, including a part
or an ingredient.
(10) MATERIAL THAT IS SELF-PRODUCED.—The term ‘‘material that is self-produced’’ means an originating material that
is produced by a producer of a good and used in the production
of that good.
(11) MODEL LINE.—The term ‘‘model line’’ means a group
of motor vehicles having the same platform or model name.
(12) NET COST.—The term ‘‘net cost’’ means total cost minus
sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest
costs that are included in the total cost.
(13) NONALLOWABLE INTEREST COSTS.—The term ‘‘nonallowable interest costs’’ means interest costs incurred by a producer
that exceed 700 basis points above the applicable official
interest rate for comparable maturities of the CAFTA–DR
country in which the producer is located.
(14) NONORIGINATING GOOD OR NONORIGINATING MATERIAL.—The terms ‘‘nonoriginating good’’ and ‘‘nonoriginating
material’’ mean a good or material, as the case may be, that
does not qualify as originating under this section.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00019

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 480

PUBLIC LAW 109–53—AUG. 2, 2005
(15) PACKING MATERIALS AND CONTAINERS FOR SHIPMENT.—
The term ‘‘packing materials and containers for shipment’’
means the goods used to protect a good during its transportation
and does not include the packaging materials and containers
in which a good is packaged for retail sale.
(16) PREFERENTIAL TARIFF TREATMENT.—The term ‘‘preferential tariff treatment’’ means the customs duty rate, and
the treatment under article 3.10.4 of the Agreement, that are
applicable to an originating good pursuant to the Agreement.
(17) PRODUCER.—The term ‘‘producer’’ means a person who
engages in the production of a good in the territory of a CAFTA–
DR country.
(18) PRODUCTION.—The term ‘‘production’’ means growing,
mining, harvesting, fishing, raising, trapping, hunting, manufacturing, processing, assembling, or disassembling a good.
(19) REASONABLY ALLOCATE.—The term ‘‘reasonably allocate’’ means to apportion in a manner that would be appropriate
under generally accepted accounting principles.
(20) RECOVERED GOODS.—The term ‘‘recovered goods’’
means materials in the form of individual parts that are the
result of—
(A) the disassembly of used goods into individual parts;
and
(B) the cleaning, inspecting, testing, or other processing
that is necessary for improvement to sound working condition of such individual parts.
(21) REMANUFACTURED GOOD.—The term ‘‘remanufactured
good’’ means a good that is classified under chapter 84, 85,
or 87, or heading 9026, 9031, or 9032, other than a good
classified under heading 8418 or 8516, and that—
(A) is entirely or partially comprised of recovered goods;
and
(B) has a similar life expectancy and enjoys a factory
warranty similar to such a new good.
(22) TOTAL COST.—The term ‘‘total cost’’ means all product
costs, period costs, and other costs for a good incurred in
the territory of one or more of the CAFTA–DR countries.
(23) USED.—The term ‘‘used’’ means used or consumed
in the production of goods.
(o) PRESIDENTIAL PROCLAMATION AUTHORITY.—
(1) IN GENERAL.—The President is authorized to proclaim,
as part of the HTS—
(A) the provisions set out in Annex 4.1 of the Agreement; and
(B) any additional subordinate category necessary to
carry out this title consistent with the Agreement.
(2) FABRICS AND YARNS NOT AVAILABLE IN COMMERCIAL
QUANTITIES IN THE UNITED STATES.—The President is authorized to proclaim that a fabric or yarn is added to the list
in Annex 3.25 of the Agreement in an unrestricted quantity,
as provided in article 3.25.4(e) of the Agreement.
(3) MODIFICATIONS.—
(A) IN GENERAL.—Subject to the consultation and layover provisions of section 104, the President may proclaim
modifications to the provisions proclaimed under the

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00020

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 481

authority of paragraph (1)(A), other than provisions of chapters 50 through 63, as included in Annex 4.1 of the Agreement.
(B) ADDITIONAL PROCLAMATIONS.—Notwithstanding
subparagraph (A), and subject to the consultation and layover provisions of section 104, the President may proclaim
before the end of the 1-year period beginning on the date
of the enactment of this Act, modifications to correct any
typographical, clerical, or other nonsubstantive technical
error regarding the provisions of chapters 50 through 63,
as included in Annex 4.1 of the Agreement.
(4) FABRICS, YARNS, OR FIBERS NOT AVAILABLE IN COMMERCIAL QUANTITIES IN THE CAFTA–DR COUNTRIES.—
(A) IN GENERAL.—Notwithstanding paragraph 3(A), the
list of fabrics, yarns, and fibers set out in Annex 3.25
of the Agreement may be modified as provided for in this
paragraph.
(B) DEFINITIONS.—In this paragraph:
(i) The term ‘‘interested entity’’ means the government of a CAFTA–DR country other than the United
States, a potential or actual purchaser of a textile
or apparel good, or a potential or actual supplier of
a textile or apparel good.
(ii) All references to ‘‘day’’ and ‘‘days’’ exclude
Saturdays, Sundays, and legal holidays.
(C) REQUESTS TO ADD FABRICS, YARNS, OR FIBERS.—
(i) An interested entity may request the President to determine that a fabric, yarn, or fiber is not available in commercial quantities in a timely manner in the CAFTA–DR countries and to add that fabric, yarn, or fiber to the list
in Annex 3.25 of the Agreement in a restricted or unrestricted quantity.
(ii) After receiving a request under clause (i), the President may determine whether—
(I) the fabric, yarn, or fiber is available in commercial quantities in a timely manner in the CAFTA–
DR countries; or
(II) any interested entity objects to the request.
(iii) The President may, within the time periods specified in clause (iv), proclaim that a fabric, yarn, or fiber
that is the subject of a request submitted under clause
(i) is added to the list in Annex 3.25 of the Agreement
in an unrestricted quantity, or in any restricted quantity
that the President may establish, if the President determines under clause (ii) that—
(I) the fabric, yarn, or fiber is not available in
commercial quantities in a timely manner in the
CAFTA–DR countries; or
(II) no interested entity has objected to the request.
(iv) The time periods within which the President may
issue a proclamation under clause (iii) are—
(I) not later than 30 days after the date on which
the request is submitted under clause (i); or
(II) not later than 44 days after the request is
submitted, if the President determines, within 30 days
after the date on which the request is submitted, that

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00021

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

Deadline.

Deadlines.

APPS06

PsN: PUBL053

119 STAT. 482

Effective date.
Federal Register,
publication.
Deadline.

Effective dates.

Deadline.

Effective date.
Federal Register,
publication.

VerDate 14-DEC-2004

05:14 Aug 25, 2005

Jkt 039139

PUBLIC LAW 109–53—AUG. 2, 2005
the President does not have sufficient information to
make a determination under clause (ii).
(v) Notwithstanding section 103(a)(2), a proclamation
made under clause (iii) shall take effect on the date on
which the text of the proclamation is published in the
Federal Register.
(vi) Not later than 6 months after proclaiming under
clause (iii) that a fabric, yarn, or fiber is added to the
list in Annex 3.25 of the Agreement in a restricted quantity,
the President may eliminate the restriction if the President
determines that the fabric, yarn, or fiber is not available
in commercial quantities in a timely manner in the
CAFTA–DR countries.
(D) DEEMED APPROVAL OF REQUEST.—If, after an
interested entity submits a request under subparagraph
(C)(i), the President does not, within the applicable time
period specified in subparagraph (C)(iv), make a determination under subparagraph (C)(ii) regarding the request, the
fabric, yarn, or fiber that is the subject of the request
shall be considered to be added, in an unrestricted quantity,
to the list in Annex 3.25 of the Agreement beginning—
(i) 45 days after the date on which the request
was submitted; or
(ii) 60 days after the date on which the request
was submitted, if the President made a determination
under subparagraph (C)(iv)(II).
(E) REQUESTS TO RESTRICT OR REMOVE FABRICS, YARNS,
OR FIBERS.—(i) Subject to clause (ii), an interested entity
may request the President to restrict the quantity of, or
remove from the list in Annex 3.25 of the Agreement,
any fabric, yarn, or fiber—
(I) that has been added to that list in an unrestricted quantity pursuant to paragraph (2) or subparagraph (C)(iii) or (D); or
(II) with respect to which the President has eliminated a restriction under subparagraph (C)(vi).
(ii) An interested entity may submit a request under
clause (i) at any time beginning 6 months after the date
of the action described in subclause (I) or (II) of that
clause.
(iii) Not later than 30 days after the date on which
a request under clause (i) is submitted, the President may
proclaim an action provided for under clause (i) if the
President determines that the fabric, yarn, or fiber that
is the subject of the request is available in commercial
quantities in a timely manner in the CAFTA–DR countries.
(iv) A proclamation declared under clause (iii) shall
take effect no earlier than the date that is 6 months after
the date on which the text of the proclamation is published
in the Federal Register.
(F) PROCEDURES.—The President shall establish procedures—
(i) governing the submission of a request under
subparagraphs (C) and (E); and
(ii) providing an opportunity for interested entities
to submit comments and supporting evidence before

PO 00053

Frm 00022

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

SWEST

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 483

the President makes a determination under subparagraph (C) (ii) or (vi) or (E)(iii).
SEC. 204. CUSTOMS USER FEES.

Section 13031(b) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after
paragraph (14), the following:
‘‘(15) No fee may be charged under subsection (a) (9) or
(10) with respect to goods that qualify as originating goods
under section 203 of the Dominican Republic-Central AmericaUnited States Free Trade Agreement Implementation Act. Any
service for which an exemption from such fee is provided by
reason of this paragraph may not be funded with money contained in the Customs User Fee Account.’’.
SEC. 205. RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS
AND RELIQUIDATIONS OF TEXTILE OR APPAREL GOODS.

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

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00023

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

19 USC 4034.

Federal Register,
publication.

Regulations.

APPS06

PsN: PUBL053

119 STAT. 484

PUBLIC LAW 109–53—AUG. 2, 2005

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

Regulations.

Applicability.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

(a) DISCLOSURE OF INCORRECT INFORMATION.—Section 592 of
the Tariff Act of 1930 (19 U.S.C. 1592) is amended—
(1) in subsection (c)—
(A) by redesignating paragraph (9) as paragraph (10);
and
(B) by inserting after paragraph (8) the following new
paragraph:
‘‘(9) PRIOR DISCLOSURE REGARDING CLAIMS UNDER THE
DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE
TRADE AGREEMENT.—An importer shall not be subject to penalties under subsection (a) for making an incorrect claim that
a good qualifies as an originating good under section 203 of
the Dominican Republic-Central America-United States Free
Trade Agreement Implementation Act if the importer, in accordance with regulations issued by the Secretary of the Treasury,
promptly and voluntarily makes a corrected declaration and
pays any duties owing.’’; and
(2) by adding at the end the following new subsection:
‘‘(h) FALSE CERTIFICATIONS OF ORIGIN UNDER THE DOMINICAN
REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE TRADE AGREEMENT.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), it is unlawful
for any person to certify falsely, by fraud, gross negligence,
or negligence, in a CAFTA–DR certification of origin (as defined
in section 508(g)(1)(B) of this Act) that a good exported from
the United States qualifies as an originating good under the
rules of origin set out in section 203 of the Dominican RepublicCentral America-United States Free Trade Agreement
Implementation Act. The procedures and penalties of this section that apply to a violation of subsection (a) also apply to
a violation of this subsection.
‘‘(2) PROMPT AND VOLUNTARY DISCLOSURE OF INCORRECT
INFORMATION.—No penalty shall be imposed under this subsection if, promptly after an exporter or producer that issued
a CAFTA–DR certification of origin has reason to believe that
such certification contains or is based on incorrect information,
the exporter or producer voluntarily provides written notice
of such incorrect information to every person to whom the
certification was issued.
‘‘(3) EXCEPTION.—A person may not be considered to have
violated paragraph (1) if—
‘‘(A) the information was correct at the time it was
provided in a CAFTA–DR certification of origin but was
later rendered incorrect due to a change in circumstances;
and
‘‘(B) the person promptly and voluntarily provides written notice of the change in circumstances to all persons
to whom the person provided the certification.’’.
(b) DENIAL OF PREFERENTIAL TARIFF TREATMENT.—Section 514
of the Tariff Act of 1930 (19 U.S.C. 1514) is amended by adding
at the end the following new subsection:
‘‘(h) DENIAL OF PREFERENTIAL TARIFF TREATMENT UNDER THE
DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE

Jkt 039139

PO 00053

Frm 00024

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 485

TRADE AGREEMENT.—If the Bureau of Customs and Border Protection or the Bureau of Immigration and Customs Enforcement finds
indications of a pattern of conduct by an importer, exporter, or
producer of false or unsupported representations that goods qualify
under the rules of origin set out in section 203 of the Dominican
Republic-Central America-United States Free Trade Agreement
Implementation Act, the Bureau of Customs and Border Protection,
in accordance with regulations issued by the Secretary of the
Treasury, may suspend preferential tariff treatment under the
Dominican Republic-Central America-United States Free Trade
Agreement to entries of identical goods covered by subsequent representations by that importer, exporter, or producer until the
Bureau of Customs and Border Protection determines that representations of that person are in conformity with such section 203.’’.
SEC. 207. RELIQUIDATION OF ENTRIES.

Subsection (d) of section 520 of the Tariff Act of 1930 (19
U.S.C. 1520(d)) is amended—
(1) in the matter preceding paragraph (1), by striking ‘‘or
section 202 of the United States-Chile Free Trade Agreement
Implementation Act’’ and inserting ‘‘, section 202 of the United
States-Chile Free Trade Agreement Implementation Act, or
section 203 of the Dominican Republic-Central America-United
States Free Trade Agreement Implementation Act’’; and
(2) in paragraph (2), by inserting ‘‘or certifications’’ after
‘‘other certificates’’.
SEC. 208. RECORDKEEPING REQUIREMENTS.

Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is
amended—
(1) by redesignating subsection (g) as subsection (h);
(2) by inserting after subsection (f) the following new subsection:
‘‘(g) CERTIFICATIONS OF ORIGIN FOR GOODS EXPORTED UNDER
THE DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE
TRADE AGREEMENT.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) RECORDS AND SUPPORTING DOCUMENTS.—The term
‘records and supporting documents’ means, with respect
to an exported good under paragraph (2), records and documents related to the origin of the good, including—
‘‘(i) the purchase, cost, and value of, and payment
for, the good;
‘‘(ii) the purchase, cost, and value of, and payment
for, all materials, including indirect materials, used
in the production of the good; and
‘‘(iii) the production of the good in the form in
which it was exported.
‘‘(B) CAFTA–DR CERTIFICATION OF ORIGIN.—The term
‘CAFTA–DR certification of origin’ means the certification
established under article 4.16 of the Dominican RepublicCentral America-United States Free Trade Agreement that
a good qualifies as an originating good under such Agreement.
‘‘(2) EXPORTS TO CAFTA–DR COUNTRIES.—Any person who
completes and issues a CAFTA–DR certification of origin for
a good exported from the United States shall make, keep,
and, pursuant to rules and regulations promulgated by the

VerDate 14-DEC-2004

05:14 Aug 25, 2005

Jkt 039139

PO 00053

Frm 00025

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

SWEST

PsN: PUBL053

119 STAT. 486

PUBLIC LAW 109–53—AUG. 2, 2005
Secretary of the Treasury, render for examination and inspection all records and supporting documents related to the origin
of the good (including the certification or copies thereof).
‘‘(3) RETENTION PERIOD.—Records and supporting documents shall be kept by the person who issued a CAFTA–
DR certification of origin for at least 5 years after the date
on which the certification was issued.’’; and
(3) in subsection (h), as so redesignated—
(A) by inserting ‘‘or (g)’’ after ‘‘(f)’’; and
(B) by striking ‘‘that subsection’’ and inserting ‘‘either
such subsection’’.

19 USC 4035.

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

(a) ACTION DURING VERIFICATION.—
(1) IN GENERAL.—If the Secretary of the Treasury requests
the government of a CAFTA–DR country to conduct a
verification pursuant to article 3.24 of the Agreement for purposes of making a determination under paragraph (2), the
President may direct the Secretary to take appropriate action
described in subsection (b) while the verification is being conducted.
(2) DETERMINATION.—A determination under this paragraph is a determination—
(A) that an exporter or producer in that country is
complying with applicable customs laws, regulations, and
procedures regarding trade in textile or apparel goods,
or
(B) that a claim that a textile or apparel good exported
or produced by such exporter or producer—
(i) qualifies as an originating good under section
203 of this Act, or
(ii) is a good of a CAFTA–DR country,
is accurate.
(b) APPROPRIATE ACTION DESCRIBED.—Appropriate action under
subsection (a)(1) includes—
(1) suspension of preferential tariff treatment under the
Agreement with respect to—
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification under
subsection (a)(1) regarding compliance described in subsection (a)(2)(A), if the Secretary determines there is
insufficient information to support any claim for preferential tariff treatment that has been made with respect
to any such good; or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1) regarding
a claim described in subsection (a)(2)(B), if the Secretary
determines there is insufficient information to support that
claim;
(2) denial of preferential tariff treatment under the Agreement with respect to—
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification under

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00026

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 487

subsection (a)(1) regarding compliance described in subsection (a)(2)(A), if the Secretary determines that the person has provided incorrect information to support any claim
for preferential tariff treatment that has been made with
respect to any such good; or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1) regarding
a claim described in subsection (a)(2)(B), if the Secretary
determines that a person has provided incorrect information to support that claim;
(3) detention of any textile or apparel good exported or
produced by the person that is the subject of a verification
under subsection (a)(1) regarding compliance described in subsection (a)(2)(A) or a claim described in subsection (a)(2)(B),
if the Secretary determines there is insufficient information
to determine the country of origin of any such good; and
(4) denial of entry into the United States of any textile
or apparel good exported or produced by the person that is
the subject of a verification under subsection (a)(1) regarding
compliance described in subsection (a)(2)(A) or a claim described
in subsection (a)(2)(B), if the Secretary determines that the
person has provided incorrect information as to the country
of origin of any such good.
(c) ACTION ON COMPLETION OF A VERIFICATION.—On completion
of a verification under subsection (a), the President may direct
the Secretary to take appropriate action described in subsection
(d) until such time as the Secretary receives information sufficient
to make the determination under subsection (a)(2) or until such
earlier date as the President may direct.
(d) APPROPRIATE ACTION DESCRIBED.—Appropriate action under
subsection (c) includes—
(1) denial of preferential tariff treatment under the Agreement with respect to—
(A) any textile or apparel good exported or produced
by the person that is the subject of a verification under
subsection (a)(1) regarding compliance described in subsection (a)(2)(A), if the Secretary determines there is
insufficient information to support, or that the person has
provided incorrect information to support, any claim for
preferential tariff treatment that has been made with
respect to any such good; or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1) regarding
a claim described in subsection (a)(2)(B), if the Secretary
determines there is insufficient information to support, or
that a person has provided incorrect information to support,
that claim; and
(2) denial of entry into the United States of any textile
or apparel good exported or produced by the person that is
the subject of a verification under subsection (a)(1) regarding
compliance described in subsection (a)(2)(A) or a claim described
in subsection (a)(2)(B), if the Secretary determines there is
insufficient information to determine, or that the person has
provided incorrect information as to, the country of origin of
any such good.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00027

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 488

PUBLIC LAW 109–53—AUG. 2, 2005

(e) PUBLICATION OF NAME OF PERSON.—The Secretary may
publish the name of any person that the Secretary has determined—
(1) is engaged in intentional circumvention of applicable
laws, regulations, or procedures affecting trade in textile or
apparel goods; or
(2) has failed to demonstrate that it produces, or is capable
of producing, textile or apparel goods.
19 USC 4036.

SEC. 210. REGULATIONS.

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

TITLE III—RELIEF FROM IMPORTS
19 USC 4051.

SEC. 301. DEFINITIONS.

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

Subtitle A—Relief From Imports Benefiting
From the Agreement
19 USC 4061.

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

(a) FILING OF PETITION.—A petition requesting action under
this subtitle for the purpose of adjusting to the obligations of
the United States under the Agreement may be filed with the

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00028

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 489

Commission by an entity, including a trade association, firm, certified or recognized union, or group of workers, that is representative of an industry. The Commission shall transmit a copy of any
petition filed under this subsection to the United States Trade
Representative.
(b) INVESTIGATION AND DETERMINATION.—Upon the filing of
a petition under subsection (a), the Commission, unless subsection
(d) applies, shall promptly initiate an investigation to determine
whether, as a result of the reduction or elimination of a duty
provided for under the Agreement, a CAFTA–DR article is being
imported into the United States in such increased quantities, in
absolute terms or relative to domestic production, and under such
conditions that imports of the CAFTA–DR article constitute a
substantial cause of serious injury or threat thereof to the domestic
industry producing an article that is like, or directly competitive
with, the imported article.
(c) APPLICABLE PROVISIONS.—The following provisions of section
202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect
to any investigation initiated under subsection (b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(2) Subsection (c).
(3) Subsection (i).
(d) ARTICLES EXEMPT FROM INVESTIGATION.—No investigation
may be initiated under this section with respect to any CAFTA–
DR article if, after the date that the Agreement enters into force,
import relief has been provided with respect to that CAFTA–DR
article under this subtitle.

VerDate 14-DEC-2004

SEC. 312. COMMISSION ACTION ON PETITION.

19 USC 4062.

(a) DETERMINATION.—Not later than 120 days after the date
on which an investigation is initiated under section 311(b) with
respect to a petition, the Commission shall make the determination
required under that section. At that time, the Commission shall
also determine whether any CAFTA–DR country is a de minimis
supplying country.
(b) APPLICABLE PROVISIONS.—For purposes of this subtitle, the
provisions of paragraphs (1), (2), and (3) of section 330(d) of the
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be
applied with respect to determinations and findings made under
this section as if such determinations and findings were made
under section 202 of the Trade Act of 1974 (19 U.S.C. 2252).
(c) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINATION AFFIRMATIVE.—If the determination made by the Commission
under subsection (a) with respect to imports of an article is affirmative, or if the President may consider a determination of the
Commission to be an affirmative determination as provided for
under paragraph (1) of section 330(d) of the Tariff Act of 1930
(19 U.S.C. 1330(d)), the Commission shall find, and recommend
to the President in the report required under subsection (d), the
amount of import relief that is necessary to remedy or prevent
the injury found by the Commission in the determination and
to facilitate the efforts of the domestic industry to make a positive
adjustment to import competition. The import relief recommended
by the Commission under this subsection shall be limited to the
relief described in section 313(c). Only those members of the
Commission who voted in the affirmative under subsection (a) are
eligible to vote on the proposed action to remedy or prevent the

Deadline.

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00029

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 490

Federal Register,
publication.

President.
19 USC 4063.
Deadline.

VerDate 14-DEC-2004

05:14 Aug 25, 2005

PUBLIC LAW 109–53—AUG. 2, 2005

injury found by the Commission. Members of the Commission who
did not vote in the affirmative may submit, in the report required
under subsection (d), separate views regarding what action, if any,
should be taken to remedy or prevent the injury.
(d) REPORT TO PRESIDENT.—Not later than the date that is
30 days after the date on which a determination is made under
subsection (a) with respect to an investigation, the Commission
shall submit to the President a report that includes—
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is affirmative,
any findings and recommendations for import relief made under
subsection (c) and an explanation of the basis for each recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination and recommendation
referred to in paragraphs (1) and (2).
(e) PUBLIC NOTICE.—Upon submitting a report to the President
under subsection (d), the Commission shall promptly make public
such report (with the exception of information which the Commission determines to be confidential) and shall cause a summary
thereof to be published in the Federal Register.
SEC. 313. PROVISION OF RELIEF.

(a) IN GENERAL.—Not later than the date that is 30 days
after the date on which the President receives the report of the
Commission in which the Commission’s determination under section
312(a) is affirmative, or which contains a determination under
section 312(a) that the President considers to be affirmative under
paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C.
1330(d)(1)), the President, subject to subsection (b), shall provide
relief from imports of the article that is the subject of such determination to the extent that the President determines necessary
to remedy or prevent the injury found by the Commission and
to facilitate the efforts of the domestic industry to make a positive
adjustment to import competition.
(b) EXCEPTION.—The President is not required to provide import
relief under this section if the President determines that the provision of the import relief will not provide greater economic and
social benefits than costs.
(c) NATURE OF RELIEF.—
(1) IN GENERAL.—The import relief that the President is
authorized to provide under this section with respect to imports
of an article is as follows:
(A) The suspension of any further reduction provided
for under Annex 3.3 of the Agreement in the duty imposed
on such article.
(B) An increase in the rate of duty imposed on such
article to a level that does not exceed the lesser of—
(i) the column 1 general rate of duty imposed under
the HTS on like articles at the time the import relief
is provided; or
(ii) the column 1 general rate of duty imposed
under the HTS on like articles on the day before the
date on which the Agreement enters into force.
(2) PROGRESSIVE LIBERALIZATION.—If the period for which
import relief is provided under this section is greater than

Jkt 039139

PO 00053

Frm 00030

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

SWEST

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 491

1 year, the President shall provide for the progressive liberalization (described in article 8.2.3 of the Agreement) of such relief
at regular intervals during the period of its application.
(d) PERIOD OF RELIEF.—
(1) IN GENERAL.—Subject to paragraph (2), any import relief
that the President is authorized to provide under this section
may not, in the aggregate, be in effect for more than 4 years.
(2) EXTENSION.—
(A) IN GENERAL.—If the initial period for any import
relief provided under this section is less than 4 years,
the President, after receiving a determination from the
Commission under subparagraph (B) that is affirmative,
or which the President considers to be affirmative under
paragraph (1) of section 330(d) of the Tariff Act of 1930
(19 U.S.C. 1330(d)(1)), may extend the effective period of
any import relief provided under this section, subject to
the limitation under paragraph (1), if the President determines that—
(i) the import relief continues to be necessary to
remedy or prevent serious injury and to facilitate
adjustment by the domestic industry to import competition; and
(ii) there is evidence that the industry is making
a positive adjustment to import competition.
(B) ACTION BY COMMISSION.—(i) Upon a petition on
behalf of the industry concerned that is filed with the
Commission not earlier than the date which is 9 months,
and not later than the date which is 6 months, before
the date on which any action taken under subsection (a)
is to terminate, the Commission shall conduct an investigation to determine whether action under this section continues to be necessary to remedy or prevent serious injury
and whether there is evidence that the industry is making
a positive adjustment to import competition.
(ii) The Commission shall publish notice of the
commencement of any proceeding under this subparagraph
in the Federal Register and shall, within a reasonable
time thereafter, hold a public hearing at which the Commission shall afford interested parties and consumers an opportunity to be present, to present evidence, and to respond
to the presentations of other parties and consumers, and
otherwise to be heard.
(iii) The Commission shall transmit to the President
a report on its investigation and determination under this
subparagraph not later than 60 days before the action
under subsection (a) is to terminate, unless the President
specifies a different date.
(e) RATE AFTER TERMINATION OF IMPORT RELIEF.—When import
relief under this section is terminated with respect to an article—
(1) the rate of duty on that article after such termination
and on or before December 31 of the year in which such termination occurs shall be the rate that, according to the Schedule
of the United States to Annex 3.3 of the Agreement would
have been in effect 1 year after the provision of relief under
subsection (a); and

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00031

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

Deadline.

Federal Register,
publication.

Reports.
Deadline.

APPS06

PsN: PUBL053

119 STAT. 492

PUBLIC LAW 109–53—AUG. 2, 2005

(2) the rate of duty for that article after December 31
of the year in which termination occurs shall be, at the discretion of the President, either—
(A) the applicable rate of duty for that article set
out in the Schedule of the United States to Annex 3.3
of the Agreement; or
(B) the rate of duty resulting from the elimination
of the tariff in equal annual stages ending on the date
set out in the Schedule of the United States to Annex
3.3 of the Agreement for the elimination of the tariff.
(f) ARTICLES EXEMPT FROM RELIEF.—No import relief may be
provided under this section on—
(1) any article subject to import relief under chapter 1
of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.);
or
(2) imports of a CAFTA–DR article of a CAFTA–DR country
that is a de minimis supplying country with respect to that
article.
SEC. 314. TERMINATION OF RELIEF AUTHORITY.

19 USC 4064.

(a) GENERAL RULE.—Subject to subsection (b), no import relief
may be provided under this subtitle after the date that is 10
years after the date on which the Agreement enters into force.
(b) EXCEPTION.—If an article for which relief is provided under
this subtitle is an article for which the period for tariff elimination,
set out in the Schedule of the United States to Annex 3.3 of
the Agreement, is greater than 10 years, no relief under this subtitle
may be provided for that article after the date on which that
period ends.
SEC. 315. COMPENSATION AUTHORITY.

19 USC 4065.

For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President under
section 313 shall be treated as action taken under chapter 1 of
title II of such Act.
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8))
is amended in the first sentence—
(1) by striking ‘‘and’’; and
(2) by inserting before the period at the end ‘‘, and title
III of the Dominican Republic-Central America-United States
Free Trade Agreement Implementation Act’’.

Subtitle B—Textile and Apparel Safeguard
Measures
SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

President.
19 USC 4081.

Federal Register,
publication.
Notice.

VerDate 14-DEC-2004

06:17 Aug 25, 2005

(a) IN GENERAL.—A request under this subtitle for the purpose
of adjusting to the obligations of the United States under the
Agreement may be filed with the President by an interested party.
Upon the filing of a request, the President shall review the request
to determine, from information presented in the request, whether
to commence consideration of the request.
(b) PUBLICATION OF REQUEST.—If the President determines that
the request under subsection (a) provides the information necessary

Jkt 039139

PO 00053

Frm 00032

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

SWEST

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 493

for the request to be considered, the President shall cause to be
published in the Federal Register a notice of commencement of
consideration of the request, and notice seeking public comments
regarding the request. The notice shall include a summary of the
request and the dates by which comments and rebuttals must
be received.
SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

(a) DETERMINATION.—
(1) IN GENERAL.—If a positive determination is made under
section 321(b), the President shall determine whether, as a
result of the elimination of a duty under the Agreement, a
CAFTA–DR textile or apparel article of a specified CAFTA–
DR country is being imported into the United States in such
increased quantities, in absolute terms or relative to the
domestic market for that article, and under such conditions
as to cause serious damage, or actual threat thereof, to a
domestic industry producing an article that is like, or directly
competitive with, the imported article.
(2) SERIOUS DAMAGE.—In making a determination under
paragraph (1), the President—
(A) shall examine the effect of increased imports on
the domestic industry, as reflected in changes in such relevant economic factors as output, productivity, utilization
of capacity, inventories, market share, exports, wages,
employment, domestic prices, profits, and investment, none
of which is necessarily decisive; and
(B) shall not consider changes in technology or consumer preference as factors supporting a determination
of serious damage or actual threat thereof.
(3) DEADLINE FOR DETERMINATION.—The President shall
make the determination under paragraph (1) no later than
30 days after the completion of any consultations held pursuant
to article 3.23.4 of the Agreement.
(b) PROVISION OF RELIEF.—
(1) IN GENERAL.—If a determination under subsection (a)
is affirmative, the President may provide relief from imports
of the article that is the subject of such determination, as
provided in paragraph (2), to the extent that the President
determines necessary to remedy or prevent the serious damage
and to facilitate adjustment by the domestic industry.
(2) NATURE OF RELIEF.—The relief that the President is
authorized to provide under this subsection with respect to
imports of an article is an increase in the rate of duty imposed
on the article to a level that does not exceed the lesser of—
(A) the column 1 general rate of duty imposed under
the HTS on like articles at the time the import relief
is provided; or
(B) the column 1 general rate of duty imposed under
the HTS on like articles on the day before the date on
which the Agreement enters into force.
SEC. 323. PERIOD OF RELIEF.

President.
19 USC 4082.

19 USC 4083.

(a) IN GENERAL.—Subject to subsection (b), any import relief
that the President provides under subsection (b) of section 322
may not, in the aggregate, be in effect for more than 3 years.
(b) EXTENSION.—If the initial period for any import relief provided under section 322 is less than 3 years, the President may

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00033

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

119 STAT. 494

PUBLIC LAW 109–53—AUG. 2, 2005

extend the effective period of any import relief provided under
that section, subject to the limitation set forth in subsection (a),
if the President determines that—
(1) the import relief continues to be necessary to remedy
or prevent serious damage and to facilitate adjustment by the
domestic industry to import competition; and
(2) there is evidence that the industry is making a positive
adjustment to import competition.
19 USC 4084.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

The President may not provide import relief under this subtitle
with respect to any article if—
(1) import relief previously has been provided under this
subtitle with respect to that article; or
(2) the article is subject to import relief under—
(A) subtitle A; or
(B) chapter 1 of title II of the Trade Act of 1974.
19 USC 4085.

SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

When import relief under this subtitle is terminated with
respect to an article, the rate of duty on that article shall be
the rate that would have been in effect, but for the provision
of such relief.
19 USC 4086.

SEC. 326. TERMINATION OF RELIEF AUTHORITY.

No import relief may be provided under this subtitle with
respect to any article after the date that is 5 years after the
date on which the Agreement enters into force.
19 USC 4087.

SEC. 327. COMPENSATION AUTHORITY.

For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President under
this subtitle shall be treated as action taken under chapter 1
of title II of that Act.
19 USC 4088.

SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.

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

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

VerDate 14-DEC-2004

19 USC 4101.

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

Reports.

(a) EFFECT OF IMPORTS.—If, in any investigation initiated under
chapter 1 of title II of the Trade Act of 1974, the Commission
makes an affirmative determination (or a determination which the
President may treat as an affirmative determination under such
chapter by reason of section 330(d) of the Tariff Act of 1930),
the Commission shall also find (and report to the President at

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00034

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 495

the time such injury determination is submitted to the President)
whether imports of the article of each CAFTA–DR country that
qualify as originating goods under section 203(b) are a substantial
cause of serious injury or threat thereof.
(b) PRESIDENTIAL DETERMINATION REGARDING IMPORTS OF
CAFTA–DR COUNTRIES.—In determining the nature and extent
of action to be taken under chapter 1 of title II of the Trade
Act of 1974, the President may exclude from the action goods
of a CAFTA–DR country with respect to which the Commission
has made a negative finding under subsection (a).

TITLE IV—MISCELLANEOUS
SEC. 401. ELIGIBLE PRODUCTS.

Section 308(4)(A) of the Trade Agreements Act of 1979 (19
U.S.C. 2518(4)(A)) is amended—
(1) by striking ‘‘or’’ at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and
inserting ‘‘; or’’; and
(3) by adding at the end the following new clause:
‘‘(iv) a party to the Dominican Republic-Central
America-United States Free Trade Agreement, a
product or service of that country or instrumentality
which is covered under that Agreement for procurement by the United States.’’.
SEC. 402. MODIFICATIONS TO THE CARIBBEAN BASIN ECONOMIC
RECOVERY ACT.

(a) FORMER BENEFICIARY COUNTRIES.—Section 212(a)(1) of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)(1)) is
amended by adding at the end the following new subparagraph:
‘‘(F) The term ‘former beneficiary country’ means a
country that ceases to be designated as a beneficiary
country under this title because the country has become
a party to a free trade agreement with the United States.’’.
(b) COUNTRIES ELIGIBLE FOR DESIGNATION AS BENEFICIARY
COUNTRIES.—Section 212(b) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2702(b)) is amended by striking from
the list of countries eligible for designation as beneficiary
countries—
(1) ‘‘Costa Rica’’, effective on the date the President terminates the designation of Costa Rica as a beneficiary country
pursuant to section 201(a)(3);
(2) ‘‘Dominican Republic’’, effective on the date the President terminates the designation of the Dominican Republic
as a beneficiary country pursuant to section 201(a)(3);
(3) ‘‘El Salvador’’, effective on the date the President terminates the designation of El Salvador as a beneficiary country
pursuant to section 201(a)(3);
(4) ‘‘Guatemala’’, effective on the date the President terminates the designation of Guatemala as a beneficiary country
pursuant to section 201(a)(3);
(5) ‘‘Honduras’’, effective on the date the President terminates the designation of Honduras as a beneficiary country
pursuant to section 201(a)(3); and

VerDate 14-DEC-2004

05:14 Aug 25, 2005

Jkt 039139

PO 00053

Frm 00035

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

Effective dates.

19 USC 2702
note.
19 USC 2702
note.
19 USC 2702
note.
19 USC 2702
note.
19 USC 2702
note.

SWEST

PsN: PUBL053

119 STAT. 496
19 USC 2702
note.

PUBLIC LAW 109–53—AUG. 2, 2005

(6) ‘‘Nicaragua’’, effective on the date the President terminates the designation of Nicaragua as a beneficiary country
pursuant to section 201(a)(3).
(c) MATERIALS OF, OR PROCESSING IN, FORMER BENEFICIARY
COUNTRIES.—Section 213(a)(1) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(a)(1)) is amended by striking ‘‘the
Commonwealth of Puerto Rico and the United States Virgin Islands’’
and inserting ‘‘the Commonwealth of Puerto Rico, the United States
Virgin Islands, and any former beneficiary country’’.
(d) DEFINITIONS AND SPECIAL RULES.—Section 213(b)(5) of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)(5)) is
amended by adding at the end the following new subparagraphs:
‘‘(G) FORMER CBTPA BENEFICIARY COUNTRY.—The term
‘former CBTPA beneficiary country’ means a country that
ceases to be designated as a CBTPA beneficiary country
under this title because the country has become a party
to a free trade agreement with the United States.
‘‘(H) ARTICLES THAT UNDERGO PRODUCTION IN A CBTPA
BENEFICIARY COUNTRY AND A FORMER CBTPA BENEFICIARY
COUNTRY.—(i) For purposes of determining the eligibility

of an article for preferential treatment under paragraph
(2) or (3), references in either such paragraph, and in
subparagraph (C) of this paragraph to—
‘‘(I) a ‘CBTPA beneficiary country’ shall be considered to include any former CBTPA beneficiary country,
and
‘‘(II) ‘CBTPA beneficiary countries’ shall be considered to include former CBTPA beneficiary countries,
if the article, or a good used in the production of the
article, undergoes production in a CBTPA beneficiary
country.
‘‘(ii) An article that is eligible for preferential treatment
under clause (i) shall not be ineligible for such treatment
because the article is imported directly from a former
CBTPA beneficiary country.
‘‘(iii) Notwithstanding clauses (i) and (ii), an article
that is a good of a former CBTPA beneficiary country
for purposes of section 304 of the Tariff Act of 1930 (19
U.S.C. 1304) or section 334 of the Uruguay Round Agreements Act (19 U.S.C. 3592), as the case may be, shall
not be eligible for preferential treatment under paragraph
(2) or (3), unless—
‘‘(I) it is an article that is a good of the Dominican
Republic under either such section 304 or 334; and
‘‘(II) the article, or a good used in the production
of the article, undergoes production in Haiti.’’.
19 USC 4111.

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

(a) REPORTS TO CONGRESS.—
(1) IN GENERAL.—Not later than the end of the 2-year
period beginning on the date the Agreement enters into force,
and not later than the end of each 2-year period thereafter
during the succeeding 14-year period, the President shall report
to the Congress on the progress made by the CAFTA–DR countries in—

President.

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00036

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053

PUBLIC LAW 109–53—AUG. 2, 2005

119 STAT. 497

(A) implementing Chapter Sixteen and Annex 16.5 of
the Agreement; and
(B) implementing the White Paper.
(2) WHITE PAPER.—In this section, the term ‘‘White Paper’’
means the report of April 2005 of the Working Group of the
Vice Ministers Responsible for Trade and Labor in the Countries of Central America and the Dominican Republic entitled
‘‘The Labor Dimension in Central America and the Dominican
Republic - Building on Progress: Strengthening Compliance
and Enhancing Capacity’’.
(3) CONTENTS OF REPORTS.—Each report under paragraph
(1) shall include the following:
(A) A description of the progress made by the Labor
Cooperation and Capacity Building Mechanism established
by article 16.5 and Annex 16.5 of the Agreement, and
the Labor Affairs Council established by article 16.4 of
the Agreement, in achieving their stated goals, including
a description of the capacity-building projects undertaken,
funds received, and results achieved, in each CAFTA–DR
country.
(B) Recommendations on how the United States can
facilitate full implementation of the recommendations contained in the White Paper.
(C) A description of the work done by the CAFTA–
DR countries with the International Labor Organization
to implement the recommendations contained in the White
Paper, and the efforts of the CAFTA–DR countries with
international organizations, through the Labor Cooperation
and Capacity Building Mechanism referred to in subparagraph (A), to advance common commitments regarding
labor matters.
(D) A summary of public comments received on—
(i) capacity-building efforts by the United States
envisaged by article 16.5 and Annex 16.5 of the Agreement;
(ii) efforts by the United States to facilitate full
implementation of the White Paper recommendations;
and
(iii) the efforts made by the CAFTA–DR countries
to comply with article 16.5 and Annex 16.5 of the
Agreement and to fully implement the White Paper
recommendations, including the progress made by the
CAFTA–DR countries in affording to workers internationally-recognized worker rights through improved
capacity.
(4) SOLICITATION OF PUBLIC COMMENTS.—The President
shall establish a mechanism to solicit public comments for
purposes of paragraph (3)(D).
(b) PERIODIC MEETINGS OF SECRETARY OF LABOR WITH LABOR
MINISTERS OF CAFTA–DR COUNTRIES.—
(1) PERIODIC MEETINGS.—The Secretary of Labor should
take the necessary steps to meet periodically with the labor
ministers of the CAFTA–DR countries to discuss—
(A) the operation of the labor provisions of the Agreement;

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00037

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL053.109

President.

APPS06

PsN: PUBL053

119 STAT. 498

PUBLIC LAW 109–53—AUG. 2, 2005
(B) progress on the commitments made by the CAFTA–
DR countries to implement the recommendations contained
in the White Paper;
(C) the work of the International Labor Organization
in the CAFTA–DR countries, and other cooperative efforts,
to afford to workers internationally-recognized worker
rights; and
(D) such other matters as the Secretary of Labor and
the labor ministers consider appropriate.
(2) INCLUSION IN BIENNIAL REPORTS.—The President shall
include in each report under subsection (a), as the President
deems appropriate, summaries of the meetings held pursuant
to paragraph (1).

President.

Approved August 2, 2005.

LEGISLATIVE HISTORY—H.R. 3045 (S. 1307):
HOUSE REPORTS: No. 109–182 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 151 (2005):
July 27, considered and passed House.
July 28, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 41 (2005):
Aug. 2, Presidential remarks.

Æ

VerDate 14-DEC-2004

08:56 Aug 15, 2005

Jkt 039139

PO 00053

Frm 00038

Fmt 6580

Sfmt 6580

E:\PUBLAW\PUBL053.109

APPS06

PsN: PUBL053