[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3450 Enrolled Bill (ENR)]

        H.R.3450
                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
  the fifth day of January, one thousand nine hundred and ninety-three


                                 An Act


 
          To implement the North American 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 AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``North American Free 
Trade Agreement Implementation Act''.
    (b) Table of Contents.--
Sec. 1. Short title and table of contents.
Sec. 2. Definitions.

  TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE NORTH 
                      AMERICAN FREE TRADE AGREEMENT

Sec. 101. Approval and entry into force of the North American Free Trade 
          Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Consultation and layover requirements for, and effective date 
          of, proclaimed actions.
Sec. 104. Implementing actions in anticipation of entry into force and 
          initial regulations.
Sec. 105. United States Section of the NAFTA Secretariat.
Sec. 106. Appointments to chapter 20 panel proceedings.
Sec. 107. Termination or suspension of United States-Canada Free-Trade 
          Agreement.
Sec. 108. Congressional intent regarding future accessions.
Sec. 109. Effective dates; effect of termination of NAFTA status.

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.
Sec. 202. Rules of origin.
Sec. 203. Drawback.
Sec. 204. Customs user fees.
Sec. 205. Enforcement.
Sec. 206. Reliquidation of entries for NAFTA-origin goods.
Sec. 207. Country of origin marking of NAFTA goods.
Sec. 208. Protests against adverse origin determinations.
Sec. 209. Exchange of information.
Sec. 210. Prohibition on drawback for television picture tubes.
Sec. 211. Monitoring of television and picture tube imports.
Sec. 212. Title VI amendments.
Sec. 213. Effective dates.

       TITLE III--APPLICATION OF AGREEMENT TO SECTORS AND SERVICES

                         Subtitle A--Safeguards

        Part 1--Relief From Imports Benefiting From the Agreement

Sec. 301. Definitions.
Sec. 302. Commencing of action for relief.
Sec. 303. International Trade Commission action on petition.
Sec. 304. Provision of relief.
Sec. 305. Termination of relief authority.
Sec. 306. Compensation authority.
Sec. 307. Submission of petitions.
Sec. 308. Special tariff provisions for Canadian fresh fruits and 
          vegetables.
Sec. 309. Price-based snapback for frozen concentrated orange juice.

             Part 2--Relief From Imports From All Countries

Sec. 311. NAFTA article impact in import relief cases under the Trade 
          Act of 1974.
Sec. 312. Presidential action regarding NAFTA imports.

                       Part 3--General Provisions

Sec. 315. Provisional relief.
Sec. 316. Monitoring.
Sec. 317. Procedures concerning the conduct of International Trade 
          Commission investigations.
Sec. 318. Effective date.

                         Subtitle B--Agriculture

Sec. 321. Agriculture.

                    Subtitle C--Intellectual Property

Sec. 331. Treatment of inventive activity.
Sec. 332. Rental rights in sound recordings.
Sec. 333. Nonregistrability of misleading geographic indications.
Sec. 334. Motion pictures in the public domain.
Sec. 335. Effective dates.

             Subtitle D--Temporary Entry of Business Persons

Sec. 341. Temporary entry.
Sec. 342. Effective date.

                          Subtitle E--Standards

                     Part 1--Standards and Measures

Sec. 351. Standards and sanitary and phytosanitary measures.
Sec. 352. Transportation.

                     Part 2--Agricultural Standards

Sec. 361. Agricultural technical and conforming amendments.

               Subtitle F--Corporate Average Fuel Economy

Sec. 371. Corporate average fuel economy.

                   Subtitle G--Government Procurement

Sec. 381. Government procurement.

  TITLE IV--DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING DUTY 
                                  CASES

 Subtitle A--Organizational, Administrative, and Procedural Provisions 
       Regarding the Implementation of Chapter 19 of the Agreement

Sec. 401. References in subtitle.
Sec. 402. Organizational and administrative provisions.
Sec. 403. Testimony and production of papers in extraordinary 
          challenges.
Sec. 404. Requests for review of determinations by competent 
          investigating authorities of NAFTA countries.
Sec. 405. Rules of procedure for panels and committees.
Sec. 406. Subsidy negotiations.
Sec. 407. Identification of industries facing subsidized imports.
Sec. 408. Treatment of amendments to antidumping and countervailing duty 
          law.

            Subtitle B--Conforming Amendments and Provisions

Sec. 411. Judicial review in antidumping duty and countervailing duty 
          cases.
Sec. 412. Conforming amendments to other provisions of the Tariff Act of 
          1930.
Sec. 413. Consequential amendment to Free-Trade Agreement Act of 1988.
Sec. 414. Conforming amendments to title 28, United States Code.
Sec. 415. Effect of termination of NAFTA country status.
Sec. 416. Effective date.

 TITLE V--NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER PROVISIONS

      Subtitle A--NAFTA Transitional Adjustment Assistance Program

Sec. 501. Short title.
Sec. 502. Establishment of NAFTA transitional adjustment assistance 
          program.
Sec. 503. Conforming amendments.
Sec. 504. Authorization of appropriations.
Sec. 505. Termination of transition program.
Sec. 506. Effective date.
Sec. 507. Treatment of self-employment assistance programs.

   Subtitle B--Provisions Relating to Performance Under the Agreement

Sec. 511. Discriminatory taxes.
Sec. 512. Review of the operation and effects of the agreement.
Sec. 513. Actions affecting United States cultural industries.
Sec. 514. Report on impact of NAFTA on motor vehicle exports to Mexico.
Sec. 515. Center for the Study of Western Hemispheric Trade.
Sec. 516. Effective date.

                           Subtitle C--Funding

                        Part 1--Customs User Fees

Sec. 521. Fees for certain customs services.

                Part 2--Internal Revenue Code Amendments

Sec. 522. Authority to disclose certain tax information to the United 
          States Customs Service.
Sec. 523. Use of electronic fund transfer system for collection of 
          certain taxes.

       Subtitle D--Implementation of NAFTA Supplemental Agreements

          Part 1--Agreements Relating to Labor and Environment

Sec. 531. Agreement on labor cooperation.
Sec. 532. Agreement on environmental cooperation.
Sec. 533. Agreement on Border Environment Cooperation Commission.

     Part 2--North American Development Bank and Related Provisions.

Sec. 541. North American Development Bank.
Sec. 542. Status, immunities, and privileges.
Sec. 543. Community adjustment and investment program.
Sec. 544. Definition.

                     TITLE VI--CUSTOMS MODERNIZATION

Sec. 601. Reference.

             Subtitle A--Improvements in Customs Enforcement

Sec. 611. Penalties for violations of arrival, reporting, entry, and 
          clearance requirements.
Sec. 612. Failure to declare.
Sec. 613. Customs testing laboratories; detention of merchandise.
Sec. 614. Recordkeeping.
Sec. 615. Examination of books and witnesses.
Sec. 616. Judicial enforcement.
Sec. 617. Review of protests.
Sec. 618. Repeal of provision relating to reliquidation on account of 
          fraud.
Sec. 619. Penalties relating to manifests.
Sec. 620. Unlawful unlading or transshipment.
Sec. 621. Penalties for fraud, gross negligence, and negligence; prior 
          disclosure.
Sec. 622. Penalties for false drawback claims.
Sec. 623. Interpretive rulings and decisions; public information.
Sec. 624. Seizure authority.

             Subtitle B--National Customs Automation Program

Sec. 631. National Customs Automation Program.
Sec. 632. Drawback and refunds.
Sec. 633. Effective date of rates of duty.
Sec. 634. Definitions.
Sec. 635. Manifests.
Sec. 636. Invoice contents.
Sec. 637. Entry of merchandise.
Sec. 638. Appraisement and other procedures.
Sec. 639. Voluntary reliquidations.
Sec. 640. Appraisement regulations.
Sec. 641. Limitation on liquidation.
Sec. 642. Payment of duties and fees.
Sec. 643. Abandonment and damage.
Sec. 644. Customs officer's immunity.
Sec. 645. Protests.
Sec. 646. Refunds and errors.
Sec. 647. Bonds and other security.
Sec. 648. Customhouse brokers.
Sec. 649. Conforming amendments.

     Subtitle C--Miscellaneous Amendments to the Tariff Act of 1930

Sec. 651. Administrative exemptions.
Sec. 652. Report of arrival.
Sec. 653. Entry of vessels.
Sec. 654. Unlawful return of foreign vessel papers.
Sec. 655. Vessels not required to enter.
Sec. 656. Unlading.
Sec. 657. Declarations.
Sec. 658. General orders.
Sec. 659. Unclaimed merchandise.
Sec. 660. Destruction of merchandise.
Sec. 661. Proceeds of sale.
Sec. 662. Entry under regulations.
Sec. 663. American trademarks.
Sec. 664. Simplified recordkeeping for merchandise transported by 
          pipeline.
Sec. 665. Entry for warehouse.
Sec. 666. Cartage.
Sec. 667. Seizure.
Sec. 668. Limitation on actions.
Sec. 669. Collection of fees on behalf of other agencies.
Sec. 670. Authority to settle claims.
Sec. 671. Use of private collection agencies.

 Subtitle D--Miscellaneous Provisions and Consequential and Conforming 
                        Amendments to Other Laws

Sec. 681. Amendments to the Harmonized Tariff Schedule.
Sec. 682. Customs personnel airport work shift regulation.
Sec. 683. Use of harbor maintenance trust fund amounts for 
          administrative expenses.
Sec. 684. Amendments to title 28, United States Code.
Sec. 685. Treasury forfeiture fund.
Sec. 686. Amendments to the Revised Statutes of the United States.
Sec. 687. Amendments to title 18, United States Code.
Sec. 688. Amendment to the Act to Prevent Pollution from Ships.
Sec. 689. Miscellaneous technical amendments.
Sec. 690. Repeal of obsolete provisions of law.
Sec. 691. Reports to Congress.
Sec. 692. Effective date.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
        (1) Agreement.--The term ``Agreement'' means the North American 
    Free Trade Agreement approved by the Congress under section 101(a).
        (2) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule 
    of the United States.
        (3) Mexico.--Any reference to Mexico shall be considered to be a 
    reference to the United Mexican States.
        (4) NAFTA country.--Except as provided in section 202, the term 
    ``NAFTA country'' means--
            (A) Canada for such time as the Agreement is in force with 
        respect to, and the United States applies the Agreement to, 
        Canada; and
            (B) Mexico for such time as the Agreement is in force with 
        respect to, and the United States applies the Agreement to, 
        Mexico.
        (5) International trade commission.--The term ``International 
    Trade Commission'' means the United States International Trade 
    Commission.
        (6) Trade representative.--The term ``Trade Representative'' 
    means the United States Trade Representative.
  TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE NORTH 
                      AMERICAN FREE TRADE AGREEMENT
    SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE NORTH AMERICAN FREE 
      TRADE AGREEMENT.
    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 1103 of the Omnibus Trade and Competitiveness Act of 
1988 (19 U.S.C. 2903) and section 151 of the Trade Act of 1974 (19 
U.S.C. 2191), the Congress approves--
        (1) the North American Free Trade Agreement entered into on 
    December 17, 1992, with the Governments of Canada and Mexico and 
    submitted to the Congress on November 4, 1993; and
        (2) the statement of administrative action proposed to implement 
    the Agreement that was submitted to the Congress on November 4, 
    1993.
    (b) Conditions for Entry Into Force of the Agreement.--The President 
is authorized to exchange notes with the Government of Canada or Mexico 
providing for the entry into force, on or after January 1, 1994, of the 
Agreement for the United States with respect to such country at such 
time as--
        (1) the President--
            (A) determines that such country has implemented the 
        statutory changes necessary to bring that country into 
        compliance with its obligations under the Agreement and has made 
        provision to implement the Uniform Regulations provided for 
        under article 511 of the Agreement regarding the interpretation, 
        application, and administration of the rules of origin, and
            (B) transmits a report to the House of Representatives and 
        the Senate setting forth the determination under subparagraph 
        (A) and including, in the case of Mexico, a description of the 
        specific measures taken by that country to--
                (i) bring its laws into conformity with the requirements 
            of the Schedule of Mexico in Annex 1904.15 of the Agreement, 
            and
                (ii) otherwise ensure the effective implementation of 
            the binational panel review process under chapter 19 of the 
            Agreement regarding final antidumping and countervailing 
            duty determinations; and
        (2) the Government of such country exchanges notes with the 
    United States providing for the entry into force of the North 
    American Agreement on Environmental Cooperation and the North 
    American Agreement on Labor Cooperation for that country and the 
    United States.
    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, 
        including any law regarding--
                (i) the protection of human, animal, or plant life or 
            health,
                (ii) the protection of the environment, or
                (iii) motor carrier or worker safety; or
            (B) to limit any authority conferred under any law of the 
        United States, including section 301 of the Trade Act of 1974;
    unless specifically provided for in this Act.
    (b) Relationship of Agreement to State Law.--
        (1) Federal-state consultation.--
            (A) In general.--Upon the enactment of this Act, the 
        President shall, through the intergovernmental policy advisory 
        committees on trade established under section 306(c)(2)(A) of 
        the Trade and Tariff Act of 1984, consult with the States for 
        the purpose of achieving conformity of State laws and practices 
        with the Agreement.
            (B) Federal-state consultation process.--The Trade 
        Representative shall establish within the Office of the United 
        States Trade Representative a Federal-State consultation process 
        for addressing issues relating to the Agreement that directly 
        relate to, or will potentially have a direct impact on, the 
        States. The Federal-State consultation process shall include 
        procedures under which--
                (i) the Trade Representative will assist the States in 
            identifying those State laws that may not conform with the 
            Agreement but may be maintained under the Agreement by 
            reason of being in effect before the Agreement entered into 
            force;
                (ii) the States will be informed on a continuing basis 
            of matters under the Agreement that directly relate to, or 
            will potentially have a direct impact on, the States;
                (iii) the States will be provided opportunity to submit, 
            on a continuing basis, to the Trade Representative 
            information and advice with respect to matters referred to 
            in clause (ii);
                (iv) the Trade Representative will take into account the 
            information and advice received from the States under clause 
            (iii) when formulating United States positions regarding 
            matters referred to in clause (ii); and
                (v) the States will be involved (including involvement 
            through the inclusion of appropriate representatives of the 
            States) to the greatest extent practicable at each stage of 
            the development of United States positions regarding matters 
            referred to in clause (ii) that will be addressed by 
            committees, subcommittees, or working groups established 
            under the Agreement or through dispute settlement processes 
            provided for under the Agreement.
    The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
    to the Federal-State consultation process established by this 
    paragraph.
        (2) Legal challenge.--No State law, or the application thereof, 
    may be declared invalid as to any person or circumstance on the 
    ground that the provision or application is inconsistent with the 
    Agreement, except in an action brought by the United States for the 
    purpose of declaring such law or application invalid.
        (3) 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--
            (A) the Agreement or by virtue of Congressional approval 
        thereof, or
            (B) the North American Agreement on Environmental 
        Cooperation or the North American Agreement on Labor 
        Cooperation; 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, the North American Agreement on 
    Environmental Cooperation, or the North American Agreement on Labor 
    Cooperation.
    SEC. 103. CONSULTATION AND LAYOVER REQUIREMENTS FOR, AND EFFECTIVE 
      DATE OF, PROCLAIMED ACTIONS.
    (a) Consultation and Layover Requirements.--If a provision of this 
Act provides that the implementation of an action by the President by 
proclamation is subject to the consultation and layover requirements of 
this section, such action may be proclaimed only if--
        (1) the President has obtained advice regarding the proposed 
    action from--
            (A) the appropriate advisory committees established under 
        section 135 of the Trade Act of 1974, and
            (B) the International Trade Commission;
        (2) the President has submitted a report to the Committee on 
    Ways and Means of the House of Representatives and the Committee on 
    Finance of the Senate 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 with the first day 
    on which the President has met the requirements of paragraphs (1) 
    and (2) with respect to such action, has expired; and
        (4) the President has consulted with such Committees regarding 
    the proposed action during the period referred to in paragraph (3).
    (b) 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 requirements under subsection 
(a) may not take effect before the 15th day after the date on which the 
text of the proclamation is published in the Federal Register.
    SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE 
      AND INITIAL REGULATIONS.
    (a) Implementing Actions.--After the date of the enactment of this 
Act--
        (1) the President may proclaim such actions; and
        (2) 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 of entry into force. The 15-day restriction in section 103(b) 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 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 of entry into force of the Agreement; except that interim 
or initial regulations to implement those Uniform Regulations regarding 
rules of origin provided for under article 511 of the Agreement shall be 
issued no later than the date of entry into force of the Agreement. In 
the case of any implementing action that takes effect on a date after 
the date of entry into force of the Agreement, initial regulations to 
carry out that action shall, to the maximum extent feasible, be issued 
within 1 year after such effective date.

SEC. 105. UNITED STATES SECTION OF THE NAFTA SECRETARIAT.

    (a) Establishment of the United States Section.--The President is 
authorized to establish within any department or agency of the United 
States Government a United States Section of the Secretariat established 
under chapter 20 of the Agreement. The United States Section, subject to 
the oversight of the interagency group established under section 402, 
shall carry out its functions within the Secretariat to facilitate the 
operation of the Agreement, including the operation of chapters 19 and 
20 of the Agreement and the work of the panels, extraordinary challenge 
committees, special committees, and scientific review boards convened 
under those chapters. The United States Section 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 1993 to the 
department or agency within which the United States Section is 
established the lesser of--
        (1) such sums as may be necessary; or
        (2) $2,000,000;
for the establishment and operations of the United States Section and 
for the payment of the United States share of the expenses of binational 
panels and extraordinary challenge committees convened under chapter 19, 
and of the expenses incurred in dispute settlement proceedings under 
chapter 20, of the Agreement.
    (c) Reimbursement of Certain Expenses.--If, in accordance with Annex 
2002.2 of the Agreement, the Canadian Section or the Mexican Section of 
the Secretariat provides funds to the United States Section during any 
fiscal year, as reimbursement for expenses by the Canadian Section or 
the Mexican Section in connection with settlement proceedings under 
chapter 19 or 20 of the Agreement, the United States Section may retain 
and use such funds to carry out the functions described in subsection 
(a).

SEC. 106. APPOINTMENTS TO CHAPTER 20 PANEL PROCEEDINGS.

    (a) Consultation.--The Trade Representative shall consult with the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate regarding the selection and 
appointment of candidates for the rosters described in article 2009 of 
the Agreement.
    (b) Selection of Individuals With Environmental Expertise.--The 
United States shall, to the maximum extent practicable, encourage the 
selection of individuals who have expertise and experience in 
environmental issues for service in panel proceedings under chapter 20 
of the Agreement to hear any challenge to a United States or State 
environmental law.
    SEC. 107. TERMINATION OR SUSPENSION OF UNITED STATES-CANADA FREE-
      TRADE AGREEMENT.
    Section 501(c) of the United States-Canada Free-Trade Implementation 
Act of 1988 (19 U.S.C. 2112 note) is amended to read as follows:
    ``(c) Termination or Suspension of Agreement.--
        ``(1) Termination of agreement.--On the date the Agreement 
    ceases to be in force, the provisions of this Act (other than this 
    paragraph and section 410(b)), and the amendments made by this Act, 
    shall cease to have effect.
        ``(2) Effect of agreement suspension.--An agreement by the 
    United States and Canada to suspend the operation of the Agreement 
    shall not be deemed to cause the Agreement to cease to be in force 
    within the meaning of paragraph (1).
        ``(3) Suspension resulting from nafta.--On the date the United 
    States and Canada agree to suspend the operation of the Agreement by 
    reason of the entry into force between them of the North American 
    Free Trade Agreement, the following provisions of this Act are 
    suspended and shall remain suspended until such time as the 
    suspension of the Agreement may be terminated:
            ``(A) Sections 204 (a) and (b) and 205(a).
            ``(B) Sections 302 and 304(f).
            ``(C) Sections 404, 409, and 410(b).''.

SEC. 108. CONGRESSIONAL INTENT REGARDING FUTURE ACCESSIONS.

    (a) In General.--Section 101(a) may not be construed as conferring 
Congressional approval of the entry into force of the Agreement for the 
United States with respect to countries other than Canada and Mexico.
    (b) Future Free Trade Area Negotiations.--
        (1) Findings.--The Congress makes the following findings:
            (A) Efforts by the United States to obtain greater market 
        opening through multilateral negotiations have not produced 
        agreements that fully satisfy the trade negotiating objectives 
        of the United States.
            (B) United States trade policy should provide for additional 
        mechanisms with which to pursue greater market access for United 
        States exports of goods and services and opportunities for 
        export-related investment by United States persons.
            (C) Among the additional mechanisms should be a system of 
        bilateral and multilateral trade agreements that provide greater 
        market access for United States exports and opportunities for 
        export-related investment by United States persons.
            (D) The system of trade agreements can and should be 
        structured to be consistent with, and complementary to, existing 
        international obligations of the United States and ongoing 
        multilateral efforts to open markets.
        (2) Report on significant market opening.--No later than May 1, 
    1994, and May 1, 1997, the Trade Representative shall submit to the 
    President, and to the Committee on Finance of the Senate and the 
    Committee on Ways and Means of the House of Representatives 
    (hereafter in this section referred to as the ``appropriate 
    Congressional committees''), a report which lists those foreign 
    countries--
            (A) that--
                (i) currently provide fair and equitable market access 
            for United States exports of goods and services and 
            opportunities for export-related investment by United States 
            persons, beyond what is required by existing multilateral 
            trade agreements or obligations; or
                (ii) have made significant progress in opening their 
            markets to United States exports of goods and services and 
            export-related investment by United States persons; and
            (B) the further opening of whose markets has the greatest 
        potential to increase United States exports of goods and 
        services and export-related investment by United States persons, 
        either directly or through the establishment of a beneficial 
        precedent.
        (3) Presidential determination.--The President, on the basis of 
    the report submitted by the Trade Representative under paragraph 
    (2), shall determine with which foreign country or countries, if 
    any, the United States should seek to negotiate a free trade area 
    agreement or agreements.
        (4) Recommendations on future free trade area negotiations.--No 
    later than July 1, 1994, and July 1, 1997, the President shall 
    submit to the appropriate Congressional committees a written report 
    that contains--
            (A) recommendations for free trade area negotiations with 
        each foreign country selected under paragraph (3);
            (B) with respect to each country selected, the specific 
        negotiating objectives that are necessary to meet the objectives 
        of the United States under this section; and
            (C) legislative proposals to ensure adequate consultation 
        with the Congress and the private sector during the 
        negotiations, advance Congressional approval of the negotiations 
        recommended by the President, and Congressional approval of any 
        trade agreement entered into by the President as a result of the 
        negotiations.
        (5) General negotiating objectives.--The general negotiating 
    objectives of the United States under this section are to obtain--
            (A) preferential treatment for United States goods;
            (B) national treatment and, where appropriate, equivalent 
        competitive opportunity for United States services and foreign 
        direct investment by United States persons;
            (C) the elimination of barriers to trade in goods and 
        services by United States persons through standards, testing, 
        labeling, and certification requirements;
            (D) nondiscriminatory government procurement policies and 
        practices with respect to United States goods and services;
            (E) the elimination of other barriers to market access for 
        United States goods and services, and the elimination of 
        barriers to foreign direct investment by United States persons;
            (F) the elimination of acts, policies, and practices which 
        deny fair and equitable market opportunities, including foreign 
        government toleration of anticompetitive business practices by 
        private firms or among private firms that have the effect of 
        restricting, on a basis that is inconsistent with commercial 
        considerations, purchasing by such firms of United States goods 
        and services;
            (G) adequate and effective protection of intellectual 
        property rights of United States persons, and fair and equitable 
        market access for United States persons that rely upon 
        intellectual property protection;
            (H) the elimination of foreign export and domestic subsidies 
        that distort international trade in United States goods and 
        services or cause material injury to United States industries;
            (I) the elimination of all export taxes;
            (J) the elimination of acts, policies, and practices which 
        constitute export targeting; and
            (K) monitoring and effective dispute settlement mechanisms 
        to facilitate compliance with the matters described in 
        subparagraphs (A) through (J).
    SEC. 109. EFFECTIVE DATES; EFFECT OF TERMINATION OF NAFTA STATUS.
    (a) Effective Dates.--
        (1) In general.--This title (other than the amendment made by 
    section 107) takes effect on the date of the enactment of this Act.
        (2) Section 107 amendment.--The amendment made by section 107 
    takes effect on the date the Agreement enters into force between the 
    United States and Canada.
    (b) Termination of NAFTA Status.--During any period in which a 
country ceases to be a NAFTA country, sections 101 through 106 shall 
cease to have effect with respect to such country.
                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

    (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 302, 305, 307, 308, and 703 and Annexes 302.2, 
    307.1, 308.1, 308.2, 300-B, 703.2, and 703.3 of the Agreement.
        (2) Effect on mexican gsp status.--Notwithstanding section 
    502(a)(2) of the Trade Act of 1974 (19 U.S.C. 2462(a)(2)), the 
    President shall terminate the designation of Mexico as a beneficiary 
    developing country for purposes of title V of the Trade Act of 1974 
    on the date of entry into force of the Agreement between the United 
    States and Mexico.
    (b) Other Tariff Modifications.--
        (1) In general.--Subject to paragraph (2) and the consultation 
    and layover requirements of section 103(a), the President may 
    proclaim--
            (A) such modifications or continuation of any duty,
            (B) such modifications as the United States may agree to 
        with Mexico or Canada regarding the staging of any duty 
        treatment set forth in Annex 302.2 of the Agreement,
            (C) such continuation of duty-free or excise treatment, or
            (D) such additional duties,
    as the President determines to be necessary or appropriate to 
    maintain the general level of reciprocal and mutually advantageous 
    concessions with respect to Canada or Mexico provided for by the 
    Agreement.
        (2) Special rule for articles with tariff phaseout periods of 
    more than 10 years.--The President may not consider a request to 
    accelerate the staging of duty reductions for an article for which 
    the United States tariff phaseout period is more than 10 years if a 
    request for acceleration with respect to such article has been 
    denied in the preceding 3 calendar years.
    (c) Conversion to Ad Valorem Rates for Certain Textiles.--For 
purposes of subsections (a) and (b), with respect to an article covered 
by Annex 300-B of the Agreement imported from Mexico for which the base 
rate in the Schedule of the United States in Annex 300-B 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.

SEC. 202. RULES OF ORIGIN.

    (a) Originating Goods.--
        (1) In general.--For purposes of implementing the tariff 
    treatment and quantitative restrictions provided for under the 
    Agreement, except as otherwise provided in this section, a good 
    originates in the territory of a NAFTA country if--
            (A) the good is wholly obtained or produced entirely in the 
        territory of one or more of the NAFTA countries;
            (B)(i) each nonoriginating material used in the production 
        of the good--
                (I) undergoes an applicable change in tariff 
            classification set out in Annex 401 of the Agreement as a 
            result of production occurring entirely in the territory of 
            one or more of the NAFTA countries; or
                (II) where no change in tariff classification is 
            required, the good otherwise satisfies the applicable 
            requirements of such Annex; and
            (ii) the good satisfies all other applicable requirements of 
        this section;
            (C) the good is produced entirely in the territory of one or 
        more of the NAFTA countries exclusively from originating 
        materials; or
            (D) except for a good provided for in chapters 61 through 63 
        of the HTS, the good is produced entirely in the territory of 
        one or more of the NAFTA countries, but one or more of the 
        nonoriginating materials, that are provided for as parts under 
        the HTS and are used in the production of the good, does not 
        undergo a change in tariff classification because--
                (i) the good was imported into the territory of a NAFTA 
            country in an unassembled or a disassembled form but was 
            classified as an assembled good pursuant to General Rule of 
            Interpretation 2(a) of the HTS; or
                (ii)(I) the heading for the good provides for and 
            specifically describes both the good itself and its parts 
            and is not further subdivided into subheadings; or
                (II) the subheading for the good provides for and 
            specifically describes both the good itself and its parts.
        (2) Special rules.--
            (A) Foreign-trade zones.--Subparagraph (B) of paragraph (1) 
        shall not apply to a good produced in a foreign-trade zone or 
        subzone (established pursuant to the Act of June 18, 1934, 
        commonly known as the Foreign Trade Zones Act) that is entered 
        for consumption in the customs territory of the United States.
            (B) Regional value-content requirement.--For purposes of 
        subparagraph (D) of paragraph (1), a good shall be treated as 
        originating in a NAFTA country if the regional value-content of 
        the good, determined in accordance with subsection (b), is not 
        less than 60 percent where the transaction value method is used, 
        or not less than 50 percent where the net cost method is used, 
        and the good satisfies all other applicable requirements of this 
        section.
    (b) Regional Value-Content.--
        (1) In general.--Except as provided in paragraph (5), the 
    regional value-content of a good shall be calculated, at the choice 
    of the exporter or producer of the good, on the basis of--
            (A) the transaction value method described in paragraph (2); 
        or
            (B) the net cost method described in paragraph (3).
        (2) Transaction value method.--
            (A) In general.--An exporter or producer may calculate the 
        regional value-content of a good on the basis of the following 
        transaction value method:

                                                                              
                                   tv-vnm                                     
     rvc             =      --------------------      <!!>            100     
                                     tv                                       
                                                                              

            (B) Definitions.--For purposes of subparagraph (A):
                (i) The term ``RVC'' means the regional value-content, 
            expressed as a percentage.
                (ii) The term ``TV'' means the transaction value of the 
            good adjusted to a F.O.B. basis.
                (iii) The term ``VNM'' means the value of nonoriginating 
            materials used by the producer in the production of the 
            good.
        (3) Net cost method.--
            (A) In general.--An exporter or producer may calculate the 
        regional value-content of a good on the basis of the following 
        net cost method:

                                                                              
                                   nc-vnm                                     
     rvc             =      --------------------      <!!>            100     
                                     nc                                       
                                                                              

            (B) Definitions.--For purposes of subparagraph (A):
                (i) The term ``RVC'' means the regional value-content, 
            expressed as a percentage.
                (ii) The term ``NC'' means the net cost of the good.
                (iii) The term ``VNM'' means the value of nonoriginating 
            materials used by the producer in the production of the 
            good.
        (4) Value of nonoriginating materials used in originating 
    materials.--Except as provided in subsection (c)(1), and for a motor 
    vehicle identified in subsection (c)(2) or a component identified in 
    Annex 403.2 of the Agreement, the value of nonoriginating materials 
    used by the producer in the production of a good shall not, for 
    purposes of calculating the regional value-content of the good under 
    paragraph (2) or (3), include the value of nonoriginating materials 
    used to produce originating materials that are subsequently used in 
    the production of the good.
        (5) Net cost method must be used in certain cases.--An exporter 
    or producer shall calculate the regional value-content of a good 
    solely on the basis of the net cost method described in paragraph 
    (3), if--
            (A) there is no transaction value for the good;
            (B) the transaction value of the good is unacceptable under 
        Article 1 of the Customs Valuation Code;
            (C) the good is sold by the producer to a related person and 
        the volume, by units of quantity, of sales of identical or 
        similar goods to related persons during the six-month period 
        immediately preceding the month in which the good is sold 
        exceeds 85 percent of the producer's total sales of such goods 
        during that period;
            (D) the good is--
                (i) a motor vehicle provided for in heading 8701 or 
            8702, subheadings 8703.21 through 8703.90, or heading 8704, 
            8705, or 8706;
                (ii) identified in Annex 403.1 or 403.2 of the Agreement 
            and is for use in a motor vehicle provided for in heading 
            8701 or 8702, subheadings 8703.21 through 8703.90, or 
            heading 8704, 8705, or 8706;
                (iii) provided for in subheadings 6401.10 through 
            6406.10; or
                (iv) a word processing machine provided for in 
            subheading 8469.10.00;
            (E) the exporter or producer chooses to accumulate the 
        regional value-content of the good in accordance with subsection 
        (d); or
            (F) the good is designated as an intermediate material under 
        paragraph (10) and is subject to a regional value-content 
        requirement.
        (6) Net cost method allowed for adjustments.--If an exporter or 
    producer of a good calculates the regional value-content of the good 
    on the basis of the transaction value method and a NAFTA country 
    subsequently notifies the exporter or producer, during the course of 
    a verification conducted in accordance with chapter 5 of the 
    Agreement, that the transaction value of the good or the value of 
    any material used in the production of the good must be adjusted or 
    is unacceptable under Article 1 of the Customs Valuation Code, the 
    exporter or producer may calculate the regional value-content of the 
    good on the basis of the net cost method.
        (7) Review of adjustment.--Nothing in paragraph (6) shall be 
    construed to prevent any review or appeal available in accordance 
    with article 510 of the Agreement with respect to an adjustment to 
    or a rejection of--
            (A) the transaction value of a good; or
            (B) the value of any material used in the production of a 
        good.
        (8) Calculating net cost.--The producer may, consistent with 
    regulations implementing this section, calculate the net cost of a 
    good under paragraph (3), by--
            (A) calculating the total cost incurred with respect to all 
        goods produced by that producer, 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 reasonably 
        allocating the resulting net cost of those goods to the good;
            (B) calculating the total cost incurred with respect to all 
        goods produced by that producer, reasonably allocating the total 
        cost to the good, and 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 good; or
            (C) reasonably allocating each cost that is part of the 
        total cost incurred with respect to the good so that the 
        aggregate of these costs does not include any sales promotion, 
        marketing and after-sales service costs, royalties, shipping and 
        packing costs, or nonallowable interest costs.
        (9) Value of material used in production.--Except as provided in 
    paragraph (11), the value of a material used in the production of a 
    good--
            (A) shall--
                (i) be the transaction value of the material determined 
            in accordance with Article 1 of the Customs Valuation Code; 
            or
                (ii) in the event that there is no transaction value or 
            the transaction value of the material is unacceptable under 
            Article 1 of the Customs Valuation Code, be determined in 
            accordance with Articles 2 through 7 of the Customs 
            Valuation Code; and
            (B) if not included under clause (i) or (ii) of subparagraph 
        (A), shall include--
                (i) freight, insurance, packing, and all other costs 
            incurred in transporting the material to the location of the 
            producer;
                (ii) duties, taxes, and customs brokerage fees paid on 
            the material in the territory of one or more of the NAFTA 
            countries; and
                (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 by-product.
        (10) Intermediate material.--Except for goods described in 
    subsection (c)(1), any self-produced material, other than a 
    component identified in Annex 403.2 of the Agreement, that is used 
    in the production of a good may be designated by the producer of the 
    good as an intermediate material for the purpose of calculating the 
    regional value-content of the good under paragraph (2) or (3); 
    provided that if the intermediate material is subject to a regional 
    value-content requirement, no other self-produced material that is 
    subject to a regional value-content requirement and is used in the 
    production of the intermediate material may be designated by the 
    producer as an intermediate material.
        (11) Value of intermediate material.--The value of an 
    intermediate material shall be--
            (A) the total cost incurred with respect to all goods 
        produced by the producer of the good that can be reasonably 
        allocated to the intermediate material; or
            (B) the aggregate of each cost that is part of the total 
        cost incurred with respect to the intermediate material that can 
        be reasonably allocated to that intermediate material.
        (12) Indirect material.--The value of an indirect material shall 
    be based on the Generally Accepted Accounting Principles applicable 
    in the territory of the NAFTA country in which the good is produced.
    (c) Automotive Goods.--
        (1) Passenger vehicles and light trucks, and their automotive 
    parts.--For purposes of calculating the regional value-content under 
    the net cost method for--
            (A) a good that is a motor vehicle for the transport of 15 
        or fewer persons provided for in subheading 8702.10.00 or 
        8702.90.00, or a motor vehicle provided for in subheadings 
        8703.21 through 8703.90, or subheading 8704.21 or 8704.31, or
            (B) a good provided for in the tariff provisions listed in 
        Annex 403.1 of the Agreement, that is subject to a regional 
        value-content requirement and is for use as original equipment 
        in the production of a motor vehicle for the transport of 15 or 
        fewer persons provided for in subheading 8702.10.00 or 
        8702.90.00, or a motor vehicle provided for in subheadings 
        8703.21 through 8703.90, or subheading 8704.21 or 8704.31,
    the value of nonoriginating materials used by the producer in the 
    production of the good shall be the sum of the values of all 
    nonoriginating materials, determined in accordance with subsection 
    (b)(9) at the time the nonoriginating materials are received by the 
    first person in the territory of a NAFTA country who takes title to 
    them, that are imported from outside the territories of the NAFTA 
    countries under the tariff provisions listed in Annex 403.1 of the 
    Agreement and are used in the production of the good or that are 
    used in the production of any material used in the production of the 
    good.
        (2) Other vehicles and their automotive parts.--For purposes of 
    calculating the regional value-content under the net cost method for 
    a good that is a motor vehicle provided for in heading 8701, 
    subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or 
    heading 8705 or 8706, a motor vehicle for the transport of 16 or 
    more persons provided for in subheading 8702.10.00 or 8702.90.00, or 
    a component identified in Annex 403.2 of the Agreement for use as 
    original equipment in the production of the motor vehicle, the value 
    of nonoriginating materials used by the producer in the production 
    of the good shall be the sum of--
            (A) for each material used by the producer listed in Annex 
        403.2 of the Agreement, whether or not produced by the producer, 
        at the choice of the producer and determined in accordance with 
        subsection (b), either--
                (i) the value of such material that is nonoriginating, 
            or
                (ii) the value of nonoriginating materials used in the 
            production of such material; and
            (B) the value of any other nonoriginating material used by 
        the producer that is not listed in Annex 403.2 of the Agreement 
        determined in accordance with subsection (b).
        (3) Averaging permitted.--
            (A) In general.--For purposes of calculating the regional 
        value-content of a motor vehicle described in paragraph (1) or 
        (2), the producer may average its calculation over its fiscal 
        year, using any of the categories described in subparagraph (B), 
        on the basis of either all motor vehicles in the category or on 
        the basis of only the motor vehicles in the category that are 
        exported to the territory of one or more of the other NAFTA 
        countries.
            (B) Category described.--A category is described in this 
        subparagraph if it is--
                (i) the same model line of motor vehicles in the same 
            class of vehicles produced in the same plant in the 
            territory of a NAFTA country;
                (ii) the same class of motor vehicles produced in the 
            same plant in the territory of a NAFTA country;
                (iii) the same model line of motor vehicles produced in 
            the territory of a NAFTA country; or
                (iv) if applicable, the basis set out in Annex 403.3 of 
            the Agreement.
        (4) Annex 403.1 and annex 403.2.--For purposes of calculating 
    the regional value-content for any or all goods provided for in a 
    tariff provision listed in Annex 403.1 of the Agreement, or a 
    component or material identified in Annex 403.2 of the Agreement, 
    produced in the same plant, the producer of the good may--
            (A) average its calculation--
                (i) over the fiscal year of the motor vehicle producer 
            to whom the good is sold;
                (ii) over any quarter or month; or
                (iii) over its fiscal year, if the good is sold as an 
            aftermarket part;
            (B) calculate the average referred to in subparagraph (A) 
        separately for any or all goods sold to one or more motor 
        vehicle producers; or
            (C) with respect to any calculation under this paragraph, 
        make a separate calculation for goods that are exported to the 
        territory of one or more NAFTA countries.
        (5) Phase-in of regional value-content requirement.--
    Notwithstanding Annex 401 of the Agreement, and except as provided 
    in paragraph (6), the regional value-content requirement shall be--
            (A) for a producer's fiscal year beginning on the day 
        closest to January 1, 1998, and thereafter, 56 percent 
        calculated under the net cost method, and for a producer's 
        fiscal year beginning on the day closest to January 1, 2002, and 
        thereafter, 62.5 percent calculated under the net cost method, 
        for--
                (i) a good that is a motor vehicle for the transport of 
            15 or fewer persons provided for in subheading 8702.10.00 or 
            8702.90.00, or a motor vehicle provided for in subheadings 
            8703.21 through 8703.90, or subheading 8704.21 or 8704.31; 
            and
                (ii) a good provided for in heading 8407 or 8408, or 
            subheading 8708.40, that is for use in a motor vehicle 
            identified in clause (i); and
            (B) for a producer's fiscal year beginning on the day 
        closest to January 1, 1998, and thereafter, 55 percent 
        calculated under the net cost method, and for a producer's 
        fiscal year beginning on the day closest to January 1, 2002, and 
        thereafter, 60 percent calculated under the net cost method, 
        for--
                (i) a good that is a motor vehicle provided for in 
            heading 8701, subheading 8704.10, 8704.22, 8704.23, 8704.32, 
            or 8704.90, or heading 8705 or 8706, or a motor vehicle for 
            the transport of 16 or more persons provided for in 
            subheading 8702.10.00 or 8702.90.00;
                (ii) a good provided for in heading 8407 or 8408, or 
            subheading 8708.40 that is for use in a motor vehicle 
            identified in clause (i); and
                (iii) except for a good identified in subparagraph 
            (A)(ii) or a good provided for in subheadings 8482.10 
            through 8482.80, or subheading 8483.20 or 8483.30, a good 
            identified in Annex 403.1 of the Agreement that is subject 
            to a regional value-content requirement and is for use in a 
            motor vehicle identified in subparagraph (A)(i) or (B)(i).
        (6) New and refitted plants.--The regional value-content 
    requirement for a motor vehicle identified in paragraph (1) or (2) 
    shall be--
            (A) 50 percent for 5 years after the date on which the first 
        motor vehicle prototype is produced in a plant by a motor 
        vehicle assembler, if--
                (i) it is a motor vehicle of a class, or marque, or, 
            except for a motor vehicle identified in paragraph (2), size 
            category and underbody, not previously produced by the motor 
            vehicle assembler in the territory of any of the NAFTA 
            countries;
                (ii) the plant consists of a new building in which the 
            motor vehicle is assembled; and
                (iii) the plant contains substantially all new machinery 
            that is used in the assembly of the motor vehicle; or
            (B) 50 percent for 2 years after the date on which the first 
        motor vehicle prototype is produced at a plant following a 
        refit, if it is a motor vehicle of a class, or marque, or, 
        except for a motor vehicle identified in paragraph (2), size 
        category and underbody, different from that assembled by the 
        motor vehicle assembler in the plant before the refit.
        (7) Election for certain vehicles from canada.--In the case of 
    goods provided for in subheadings 8703.21 through 8703.90, or 
    subheading 8704.21 or 8704.31, exported from Canada directly to the 
    United States, and entered on or after January 1, 1989, and before 
    the date of entry into force of the Agreement between the United 
    States and Canada, an importer may elect to use the rules of origin 
    set out in this section in lieu of the rules of origin contained in 
    section 202 of the United States-Canada Free-Trade Agreement 
    Implementation Act of 1988 (19 U.S.C. 2112 note) and may elect to 
    use the method for calculating the value of nonoriginating materials 
    established in article 403(2) of the Agreement in lieu of the method 
    established in article 403(1) of the Agreement for purposes of 
    determining eligibility for preferential duty treatment under the 
    United States-Canada Free-Trade Agreement. Any election under this 
    paragraph shall be made in writing to the Customs Service not later 
    than the date that is 180 days after the date of entry into force of 
    the Agreement between the United States and Canada. Any such 
    election may be made only if the liquidation of such entry has not 
    become final. For purposes of averaging the calculation of regional 
    value-content for the goods covered by such entry, where the 
    producer's 1989-1990 fiscal year began after January 1, 1989, the 
    producer may include the period between January 1, 1989, and the 
    beginning of its first fiscal year after January 1, 1989, as part of 
    fiscal year 1989-1990.
    (d) Accumulation.--
        (1) Determination of originating good.--For purposes of 
    determining whether a good is an originating good, the production of 
    the good in the territory of one or more of the NAFTA countries by 
    one or more producers shall, at the choice of the exporter or 
    producer of the good, be considered to have been performed in the 
    territory of any of the NAFTA countries by that exporter or 
    producer, if--
            (A) all nonoriginating materials used in the production of 
        the good undergo an applicable tariff classification change set 
        out in Annex 401 of the Agreement;
            (B) the good satisfies any applicable regional value-content 
        requirement; and
            (C) the good satisfies all other applicable requirements of 
        this section.
    The requirements of subparagraphs (A) and (B) must be satisfied 
    entirely in the territory of one or more of the NAFTA countries.
        (2) Treatment as single producer.--For purposes of subsection 
    (b)(10), the production of a producer that chooses to accumulate its 
    production with that of other producers under paragraph (1) shall be 
    treated as the production of a single producer.
    (e) De Minimis Amounts of Nonoriginating Materials.--
        (1) In general.--Except as provided in paragraphs (3), (4), (5), 
    and (6), a good shall be considered to be an originating good if--
            (A) the value of all nonoriginating materials used in the 
        production of the good that do not undergo an applicable change 
        in tariff classification (set out in Annex 401 of the Agreement) 
        is not more than 7 percent of the transaction value of the good, 
        adjusted to a F.O.B. basis, or
            (B) where the transaction value of the good is unacceptable 
        under Article 1 of the Customs Valuation Code, the value of all 
        such nonoriginating materials is not more than 7 percent of the 
        total cost of the good,
    provided that the good satisfies all other applicable requirements 
    of this section and, if the good is subject to a regional value-
    content requirement, the value of such nonoriginating materials is 
    taken into account in calculating the regional value-content of the 
    good.
        (2) Goods not subject to regional value-content requirement.--A 
    good that is otherwise subject to a regional value-content 
    requirement shall not be required to satisfy such requirement if--
            (A)(i) the value of all nonoriginating materials used in the 
        production of the good is not more than 7 percent of the 
        transaction value of the good, adjusted to a F.O.B. basis; or
            (ii) where the transaction value of the good is unacceptable 
        under Article 1 of the Customs Valuation Code, the value of all 
        nonoriginating materials is not more than 7 percent of the total 
        cost of the good; and
            (B) the good satisfies all other applicable requirements of 
        this section.
        (3) Dairy products, etc.--Paragraph (1) does not apply to--
            (A) a nonoriginating material provided for in chapter 4 of 
        the HTS or a dairy preparation containing over 10 percent by 
        weight of milk solids provided for in subheading 1901.90.30, 
        1901.90.40, or 1901.90.80 that is used in the production of a 
        good provided for in chapter 4 of the HTS;
            (B) a nonoriginating material provided for in chapter 4 of 
        the HTS or a dairy preparation containing over 10 percent by 
        weight of milk solids provided for in subheading 1901.90.30, 
        1901.90.40, or 1901.90.80 that is used in the production of--
                (i) preparations for infants containing over 10 percent 
            by weight of milk solids provided for in subheading 
            1901.10.00;
                (ii) mixes and doughs, containing over 25 percent by 
            weight of butterfat, not put up for retail sale, provided 
            for in subheading 1901.20.00;
                (iii) a dairy preparation containing over 10 percent by 
            weight of milk solids provided for in subheading 1901.90.30, 
            1901.90.40, or 1901.90.80;
                (iv) a good provided for in heading 2105 or subheading 
            2106.90.05, or preparations containing over 10 percent by 
            weight of milk solids provided for in subheading 2106.90.15, 
            2106.90.40, 2106.90.50, or 2106.90.65;
                (v) a good provided for in subheading 2202.90.10 or 
            2202.90.20; or
                (vi) animal feeds containing over 10 percent by weight 
            of milk solids provided for in subheading 2309.90.30;
            (C) a nonoriginating material provided for in heading 0805 
        or subheadings 2009.11 through 2009.30 that is used in the 
        production of--
                (i) a good provided for in subheadings 2009.11 through 
            2009.30, or subheading 2106.90.16, or concentrated fruit or 
            vegetable juice of any single fruit or vegetable, fortified 
            with minerals or vitamins, provided for in subheading 
            2106.90.19; or
                (ii) a good provided for in subheading 2202.90.30 or 
            2202.90.35, or fruit or vegetable juice of any single fruit 
            or vegetable, fortified with minerals or vitamins, provided 
            for in subheading 2202.90.36;
            (D) a nonoriginating material provided for in chapter 9 of 
        the HTS that is used in the production of instant coffee, not 
        flavored, provided for in subheading 2101.10.20;
            (E) a nonoriginating material provided for in chapter 15 of 
        the HTS that is used in the production of a good provided for in 
        headings 1501 through 1508, or heading 1512, 1514, or 1515;
            (F) a nonoriginating material provided for in heading 1701 
        that is used in the production of a good provided for in 
        headings 1701 through 1703;
            (G) a nonoriginating material provided for in chapter 17 of 
        the HTS or heading 1805 that is used in the production of a good 
        provided for in subheading 1806.10;
            (H) a nonoriginating material provided for in headings 2203 
        through 2208 that is used in the production of a good provided 
        for in headings 2207 through 2208;
            (I) a nonoriginating material used in the production of--
                (i) a good provided for in subheading 7321.11.30;
                (ii) a good provided for in subheading 8415.10, 
            subheadings 8415.81 through 8415.83, subheadings 8418.10 
            through 8418.21, subheadings 8418.29 through 8418.40, 
            subheading 8421.12 or 8422.11, subheadings 8450.11 through 
            8450.20, or subheadings 8451.21 through 8451.29;
                (iii) trash compactors provided for in subheading 
            8479.89.60; or
                (iv) a good provided for in subheading 8516.60.40; and
            (J) a printed circuit assembly that is a nonoriginating 
        material used in the production of a good where the applicable 
        change in tariff classification for the good, as set out in 
        Annex 401 of the Agreement, places restrictions on the use of 
        such nonoriginating material.
        (4) Certain fruit juices.--Paragraph (1) does not apply to a 
    nonoriginating single juice ingredient provided for in heading 2009 
    that is used in the production of--
            (A) a good provided for in subheading 2009.90, or 
        concentrated mixtures of fruit or vegetable juice, fortified 
        with minerals or vitamins, provided for in subheading 
        2106.90.19; or
            (B) mixtures of fruit or vegetable juices, fortified with 
        minerals or vitamins, provided for in subheading 2202.90.39.
        (5) Goods provided for in chapters 1 through 27 of the hts.--
    Paragraph (1) does not apply to a nonoriginating material used in 
    the production of a good provided for in chapters 1 through 27 of 
    the HTS unless the nonoriginating material is provided for in a 
    different subheading than the good for which origin is being 
    determined under this section.
        (6) Goods provided for in chapters 50 through 63 of the hts.--A 
    good provided for in chapters 50 through 63 of the HTS, that does 
    not originate 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 401 of the Agreement, shall 
    be considered to be a good that originates if the total weight of 
    all such fibers or yarns in that component is not more than 7 
    percent of the total weight of that component.
    (f) Fungible Goods and Materials.--For purposes of determining 
whether a good is an originating good--
        (1) if originating and nonoriginating fungible materials are 
    used in the production of the good, the determination of whether the 
    materials are originating need not be made through the 
    identification of any specific fungible material, but may be 
    determined on the basis of any of the inventory management methods 
    set out in regulations implementing this section; and
        (2) if originating and nonoriginating fungible goods are 
    commingled and exported in the same form, the determination may be 
    made on the basis of any of the inventory management methods set out 
    in regulations implementing this section.
    (g) Accessories, Spare Parts, or Tools.--
        (1) In general.--Except as provided in paragraph (2), 
    accessories, spare parts, or tools delivered with the good that form 
    part of the good's standard accessories, spare parts, or tools 
    shall--
            (A) be considered 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 an applicable change in tariff classification set out in 
        Annex 401 of the Agreement.
        (2) Conditions.--Paragraph (1) shall apply only if--
            (A) the accessories, spare parts, or tools are not invoiced 
        separately from the good;
            (B) the quantities and value of the accessories, spare 
        parts, or tools are customary for the good; and
            (C) in any case in which the good is subject to a regional 
        value-content requirement, the value of the accessories, spare 
        parts, or tools are taken into account as originating or 
        nonoriginating materials, as the case may be, in calculating the 
        regional value-content of the good.
    (h) Indirect Materials.--An indirect material shall be considered to 
be an originating material without regard to where it is produced.
    (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 an applicable change in tariff classification set out in Annex 
401 of the Agreement. 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 in which a good is packed for shipment shall be 
disregarded--
        (1) in determining whether the nonoriginating materials used in 
    the production of the good undergo an applicable change in tariff 
    classification set out in Annex 401 of the Agreement; and
        (2) in determining whether the good satisfies a regional value-
    content requirement.
    (k) Transshipment.--A good shall not be considered to be an 
originating good by reason of having undergone production that satisfies 
the requirements of subsection (a) if, subsequent to that production, 
the good undergoes further production or any other operation outside the 
territories of the NAFTA countries, other than unloading, reloading, or 
any other operation necessary to preserve it in good condition or to 
transport the good to the territory of a NAFTA country.
    (l) Nonqualifying Operations.--A good shall not be considered to be 
an originating good merely by reason of--
        (1) mere dilution with water or another substance that does not 
    materially alter the characteristics of the good; or
        (2) any production or pricing practice with respect to which it 
    may be demonstrated, by a preponderance of evidence, that the object 
    was to circumvent this section.
    (m) Interpretation and Application.--For purposes of this section:
        (1) The basis for any tariff classification is the HTS.
        (2) Except as otherwise expressly provided, whenever in this 
    section there is a reference to a heading or subheading such 
    reference shall be a reference to a heading or subheading of the 
    HTS.
        (3) In applying subsection (a)(4), the determination of whether 
    a heading or subheading under the HTS provides for and specifically 
    describes both a good and its parts shall be made on the basis of 
    the nomenclature of the heading or subheading, the rules of 
    interpretation, or notes of the HTS.
        (4) In applying the Customs Valuation Code--
            (A) the principles of the Customs Valuation Code shall apply 
        to domestic transactions, with such modifications as may be 
        required by the circumstances, as would apply to international 
        transactions;
            (B) the provisions of this section shall take precedence 
        over the Customs Valuation Code to the extent of any difference; 
        and
            (C) the definitions in subsection (o) shall take precedence 
        over the definitions in the Customs Valuation Code to the extent 
        of any difference.
        (5) All costs referred to in this section shall be recorded and 
    maintained in accordance with the Generally Accepted Accounting 
    Principles applicable in the territory of the NAFTA country in which 
    the good is produced.
    (n) Origin of Automatic Data Processing Goods.--Notwithstanding any 
other provision of this section, when the NAFTA countries apply the 
most-favored-nation rate of duty described in paragraph 1 of section A 
of Annex 308.1 of the Agreement to a good provided for under the tariff 
provisions set out in Table 308.1.1 of such Annex, the good shall, upon 
importation from a NAFTA country, be deemed to originate in the 
territory of a NAFTA country for purposes of this section.
    (o) Special Rule for Certain Agricultural Products.--Notwithstanding 
any other provision of this section, for purposes of applying a rate of 
duty to a good provided for in--
        (1) heading 1202 that is exported from the territory of Mexico, 
    if the good is not wholly obtained in the territory of Mexico,
        (2) subheading 2008.11 that is exported from the territory of 
    Mexico, if any material provided for in heading 1202 used in the 
    production of that good is not wholly obtained in the territory of 
    Mexico, or
        (3) subheading 1806.10.42 or 2106.90.12 that is exported from 
    the territory of Mexico, if any material provided for in subheading 
    1701.99 used in the production of that good is not a qualifying 
    good,
such good shall be treated as a nonoriginating good and, for purposes of 
this subsection, the terms ``qualifying good'' and ``wholly obtained in 
the territory of'' have the meaning given such terms in paragraph 26 of 
section A of Annex 703.2 of the Agreement.
    (p) Definitions.--For purposes of this section--
        (1) 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, 
        subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or 
        heading 8705 or 8706, or motor vehicles designed for the 
        transport of 16 or more persons provided for in subheading 
        8702.10.00 or 8702.90.00.
            (B) Motor vehicles provided for in subheading 8701.10, or 
        subheadings 8701.30 through 8701.90.
            (C) Motor vehicles for the transport of 15 or fewer persons 
        provided for in subheading 8702.10.00 or 8702.90.00, or motor 
        vehicles provided for in subheading 8704.21 or 8704.31.
            (D) Motor vehicles provided for in subheadings 8703.21 
        through 8703.90.
        (2) Customs valuation code.--The term ``Customs Valuation Code'' 
    means the Agreement on Implementation of Article VII of the General 
    Agreement on Tariffs and Trade, including its interpretative notes.
        (3) F.O.B.--The term ``F.O.B.'' means free on board, regardless 
    of the mode of transportation, at the point of direct shipment by 
    the seller to the buyer.
        (4) Fungible goods and fungible materials.--The terms ``fungible 
    goods'' and ``fungible materials'' mean goods or materials that are 
    interchangeable for commercial purposes and whose properties are 
    essentially identical.
        (5) Generally accepted accounting principles.--The term 
    ``Generally Accepted Accounting Principles'' means the recognized 
    consensus or substantial authoritative support in the territory of a 
    NAFTA country with respect to the recording of revenues, expenses, 
    costs, assets and liabilities, disclosure of information, and 
    preparation of financial statements. These standards may be broad 
    guidelines of general application as well as detailed standards, 
    practices, or procedures.
        (6) Goods wholly obtained or produced entirely in the territory 
    of one or more of the nafta countries.--The term ``goods wholly 
    obtained or produced entirely in the territory of one or more of the 
    NAFTA countries'' means--
            (A) mineral goods extracted in the territory of one or more 
        of the NAFTA countries;
            (B) vegetable goods harvested in the territory of one or 
        more of the NAFTA countries;
            (C) live animals born and raised in the territory of one or 
        more of the NAFTA countries;
            (D) goods obtained from hunting, trapping, or fishing in the 
        territory of one or more of the NAFTA countries;
            (E) goods (such as fish, shellfish, and other marine life) 
        taken from the sea by vessels registered or recorded with a 
        NAFTA country and flying its flag;
            (F) goods produced on board factory ships from the goods 
        referred to in subparagraph (E), if such factory ships are 
        registered or recorded with that NAFTA country and fly its flag;
            (G) goods taken by a NAFTA country or a person of a NAFTA 
        country from the seabed or beneath the seabed outside 
        territorial waters, provided that a NAFTA country has rights to 
        exploit such seabed;
            (H) goods taken from outer space, if the goods are obtained 
        by a NAFTA country or a person of a NAFTA country and not 
        processed in a country other than a NAFTA country;
            (I) waste and scrap derived from--
                (i) production in the territory of one or more of the 
            NAFTA countries; or
                (ii) used goods collected in the territory of one or 
            more of the NAFTA countries, if such goods are fit only for 
            the recovery of raw materials; and
            (J) goods produced in the territory of one or more of the 
        NAFTA countries exclusively from goods referred to in 
        subparagraphs (A) through (I), or from their derivatives, at any 
        stage of production.
        (7) Identical or similar goods.--The term ``identical or similar 
    goods'' means ``identical goods'' and ``similar goods'', 
    respectively, as defined in the Customs Valuation Code.
        (8) Indirect material.--
            (A) The term ``indirect material'' means a good--
                (i) used in the production, testing, or inspection of a 
            good but not physically incorporated into the good, or
                (ii) used in the maintenance of buildings or the 
            operation of equipment associated with the production of a 
            good,
        in the territory of one or more of the NAFTA countries.
            (B) When used for a purpose described in subparagraph (A), 
        the following materials are among those considered to be 
        indirect materials:
                (i) Fuel and energy.
                (ii) Tools, dies, and molds.
                (iii) Spare parts and materials used in the maintenance 
            of equipment and buildings.
                (iv) Lubricants, greases, compounding materials, and 
            other materials used in production or used to operate 
            equipment and buildings.
                (v) Gloves, glasses, footwear, clothing, safety 
            equipment, and supplies.
                (vi) Equipment, devices, and supplies used for testing 
            or inspecting the goods.
                (vii) Catalysts and solvents.
                (viii) Any other goods that are not incorporated into 
            the good, if the use of such goods in the production of the 
            good can reasonably be demonstrated to be a part of that 
            production.
        (9) Intermediate material.--The term ``intermediate material'' 
    means a material that is self-produced, used in the production of a 
    good, and designated pursuant to subsection (b)(10).
        (10) Marque.--The term ``marque'' means the trade name used by a 
    separate marketing division of a motor vehicle assembler.
        (11) Material.--The term ``material'' means a good that is used 
    in the production of another good and includes a part or an 
    ingredient.
        (12) Model line.--The term ``model line'' means a group of motor 
    vehicles having the same platform or model name.
        (13) Motor vehicle assembler.--The term ``motor vehicle 
    assembler'' means a producer of motor vehicles and any related 
    persons or joint ventures in which the producer participates.
        (14) NAFTA country.--The term ``NAFTA country'' means the United 
    States, Canada or Mexico for such time as the Agreement is in force 
    with respect to Canada or Mexico, and the United States applies the 
    Agreement to Canada or Mexico.
        (15) New building.--The term ``new building'' means a new 
    construction, including at least the pouring or construction of new 
    foundation and floor, the erection of a new structure and roof, and 
    installation of new plumbing, electrical, and other utilities to 
    house a complete vehicle assembly process.
        (16) Net cost.--The term ``net cost'' means total cost less 
    sales promotion, marketing and after-sales service costs, royalties, 
    shipping and packing costs, and nonallowable interest costs that are 
    included in the total cost.
        (17) Net cost of a good.--The term ``net cost of a good'' means 
    the net cost that can be reasonably allocated to a good using one of 
    the methods set out in subsection (b)(8).
        (18) Nonallowable interest costs.--The term ``nonallowable 
    interest costs'' means interest costs incurred by a producer as a 
    result of an interest rate that exceeds the applicable federal 
    government interest rate for comparable maturities by more than 700 
    basis points, determined pursuant to regulations implementing this 
    section.
        (19) Nonoriginating good; nonoriginating material.--The term 
    ``nonoriginating good'' or ``nonoriginating material'' means a good 
    or material that does not qualify as an originating good or material 
    under the rules of origin set out in this section.
        (20) Originating.--The term ``originating'' means qualifying 
    under the rules of origin set out in this section.
        (21) Producer.--The term ``producer'' means a person who grows, 
    mines, harvests, fishes, traps, hunts, manufactures, processes, or 
    assembles a good.
        (22) Production.--The term ``production'' means growing, mining, 
    harvesting, fishing, trapping, hunting, manufacturing, processing, 
    or assembling a good.
        (23) Reasonably allocate.--The term ``reasonably allocate'' 
    means to apportion in a manner appropriate to the circumstances.
        (24) Refit.--The term ``refit'' means a plant closure, for 
    purposes of plant conversion or retooling, that lasts at least 3 
    months.
        (25) Related persons.--The term ``related persons'' means 
    persons specified in any of the following subparagraphs:
            (A) Persons who are officers or directors of one another's 
        businesses.
            (B) Persons who are legally recognized partners in business.
            (C) Persons who are employer and employee.
            (D) Persons one of whom owns, controls, or holds 25 percent 
        or more of the outstanding voting stock or shares of the other.
            (E) Persons if 25 percent or more of the outstanding voting 
        stock or shares of each of them is directly or indirectly owned, 
        controlled, or held by a third person.
            (F) Persons one of whom is directly or indirectly controlled 
        by the other.
            (G) Persons who are directly or indirectly controlled by a 
        third person.
            (H) Persons who are members of the same family.
    For purposes of this paragraph, the term ``members of the same 
    family'' means natural or adoptive children, brothers, sisters, 
    parents, grandparents, or spouses.
        (26) Royalties.--The term ``royalties'' means payments of any 
    kind, including payments under technical assistance or similar 
    agreements, made as consideration for the use or right to use any 
    copyright, literary, artistic, or scientific work, patent, 
    trademark, design, model, plan, secret formula, or process. It does 
    not include payments under technical assistance or similar 
    agreements that can be related to specific services such as--
            (A) personnel training, without regard to where performed; 
        and
            (B) if performed in the territory of one or more of the 
        NAFTA countries, engineering, tooling, die-setting, software 
        design and similar computer services, or other services.
        (27) Sales promotion, marketing, and after-sales service 
    costs.--The term ``sales promotion, marketing, and after-sales 
    service costs'' means the costs related to sales promotion, 
    marketing, and after-sales service for the following:
            (A) Sales and marketing promotion, media advertising, 
        advertising and market research, promotional and demonstration 
        materials, exhibits, sales conferences, trade shows, 
        conventions, banners, marketing displays, free samples, sales, 
        marketing and after-sales service literature (product brochures, 
        catalogs, technical literature, price lists, service manuals, 
        sales aid information), establishment and protection of logos 
        and trademarks, sponsorships, wholesale and retail restocking 
        charges, and entertainment.
            (B) Sales and marketing incentives, consumer, retailer, or 
        wholesaler rebates, and merchandise incentives.
            (C) Salaries and wages, sales commissions, bonuses, benefits 
        (such as medical, insurance, and pension), traveling and living 
        expenses, and membership and professional fees for sales 
        promotion, marketing, and after-sales service personnel.
            (D) Recruiting and training of sales promotion, marketing, 
        and after-sales service personnel, and after-sales training of 
        customers' employees, where such costs are identified separately 
        for sales promotion, marketing, and after-sales service of goods 
        on the financial statements or cost accounts of the producer.
            (E) Product liability insurance.
            (F) Office supplies for sales promotion, marketing, and 
        after-sales service of goods, where such costs are identified 
        separately for sales promotion, marketing, and after-sales 
        service of goods on the financial statements or cost accounts of 
        the producer.
            (G) Telephone, mail, and other communications, where such 
        costs are identified separately for sales promotion, marketing, 
        and after-sales service of goods on the financial statements or 
        cost accounts of the producer.
            (H) Rent and depreciation of sales promotion, marketing, and 
        after-sales service offices and distribution centers.
            (I) Property insurance, taxes, utilities, and repair and 
        maintenance of sales promotion, marketing, and after-sales 
        service offices and distribution centers, where such costs are 
        identified separately for sales promotion, marketing, and after-
        sales service of goods on the financial statements or cost 
        accounts of the producer.
            (J) Payments by the producer to other persons for warranty 
        repairs.
        (28) Self-produced material.--The term ``self-produced 
    material'' means a material that is produced by the producer of a 
    good and used in the production of that good.
        (29) Shipping and packing costs.--The term ``shipping and 
    packing costs'' means the costs incurred in packing a good for 
    shipment and shipping the good from the point of direct shipment to 
    the buyer, but does not include the costs of preparing and packaging 
    the good for retail sale.
        (30) Size category.--The term ``size category'' means with 
    respect to a motor vehicle identified in subsection (c)(1)(A)--
            (A) 85 cubic feet or less of passenger and luggage interior 
        volume;
            (B) more than 85 cubic feet, but less than 100 cubic feet, 
        of passenger and luggage interior volume;
            (C) at least 100 cubic feet, but not more than 110 cubic 
        feet, of passenger and luggage interior volume;
            (D) more than 110 cubic feet, but less than 120 cubic feet, 
        of passenger and luggage interior volume; and
            (E) 120 cubic feet or more of passenger and luggage interior 
        volume.
        (31) Territory.--The term ``territory'' means a territory 
    described in Annex 201.1 of the Agreement.
        (32) Total cost.--The term ``total cost'' means all product 
    costs, period costs, and other costs incurred in the territory of 
    one or more of the NAFTA countries.
        (33) Transaction value.--Except as provided in subsection (c)(1) 
    or (c)(2)(A), the term ``transaction value'' means the price 
    actually paid or payable for a good or material with respect to a 
    transaction of the producer of the good, adjusted in accordance with 
    the principles of paragraphs 1, 3, and 4 of Article 8 of the Customs 
    Valuation Code and determined without regard to whether the good or 
    material is sold for export.
        (34) Underbody.--The term ``underbody'' means the floor pan of a 
    motor vehicle.
        (35) Used.--The term ``used'' means used or consumed in the 
    production of goods.
    (q) Presidential Proclamation Authority.--
        (1) In general.--The President is authorized to proclaim, as a 
    part of the HTS--
            (A) the provisions set out in Appendix 6.A of Annex 300-B, 
        Annex 401, Annex 403.1, Annex 403.2, and Annex 403.3, of the 
        Agreement, and
            (B) any additional subordinate category necessary to carry 
        out this title consistent with the Agreement.
        (2) Modifications.--Subject to the consultation and layover 
    requirements of section 103, the President may proclaim--
            (A) modifications to the provisions proclaimed under the 
        authority of paragraph (1)(A), other than the provisions of 
        paragraph A of Appendix 6 of Annex 300-B and section XI of part 
        B of Annex 401 of the Agreement; and
            (B) a modified version of the definition of any term set out 
        in subsection (p) (and such modified version of the definition 
        shall supersede the version in subsection (p)), but only if the 
        modified version reflects solely those modifications to the same 
        term in article 415 of the Agreement that are agreed to by the 
        NAFTA countries before the 1st anniversary of the date of the 
        enactment of this Act.
        (3) Special rules for textiles.--Notwithstanding the provisions 
    of paragraph (2)(A), and subject to the consultation and layover 
    requirements of section 103, the President may proclaim--
            (A) modifications to the provisions proclaimed under the 
        authority of paragraph (1)(A) as are necessary to implement an 
        agreement with one or more of the NAFTA countries pursuant to 
        paragraph 2 of section 7 of Annex 300-B of the Agreement, and
            (B) before the 1st anniversary of the date of the enactment 
        of this Act, modifications to correct any typographical, 
        clerical, or other nonsubstantive technical error regarding the 
        provisions of Appendix 6.A of Annex 300-B and section XI of part 
        B of Annex 401 of the Agreement.

SEC. 203. DRAWBACK.

    (a) Definition of a Good Subject to NAFTA Drawback.--For purposes of 
this Act and the amendments made by subsection (b), the term ``good 
subject to NAFTA drawback'' means any imported good other than the 
following:
        (1) A good entered under bond for transportation and exportation 
    to a NAFTA country.
        (2) A good exported to a NAFTA country in the same condition as 
    when imported into the United States. For purposes of this 
    paragraph--
            (A) processes such as testing, cleaning, repacking, or 
        inspecting a good, or preserving it in its same condition, shall 
        not be considered to change the condition of the good, and
            (B) except for a good referred to in paragraph 12 of section 
        A of Annex 703.2 of the Agreement that is exported to Mexico, if 
        a good described in the first sentence of this paragraph is 
        commingled with fungible goods and exported in the same 
        condition, the origin of the good may be determined on the basis 
        of the inventory methods provided for in the regulations 
        implementing this title.
        (3) A good--
            (A) that is--
                (i) deemed to be exported from the United States,
                (ii) used as a material in the production of another 
            good that is deemed to be exported to a NAFTA country, or
                (iii) substituted for by a good of the same kind and 
            quality that is used as a material in the production of 
            another good that is deemed to be exported to a NAFTA 
            country, and
            (B) that is delivered--
                (i) to a duty-free shop,
                (ii) for ship's stores or supplies for ships or 
            aircraft, or
                (iii) for use in a project undertaken jointly by the 
            United States and a NAFTA country and destined to become the 
            property of the United States.
        (4) A good exported to a NAFTA country for which a refund of 
    customs duties is granted by reason of--
            (A) the failure of the good to conform to sample or 
        specification, or
            (B) the shipment of the good without the consent of the 
        consignee.
        (5) A good that qualifies under the rules of origin set out in 
    section 202 that is--
            (A) exported to a NAFTA country,
            (B) used as a material in the production of another good 
        that is exported to a NAFTA country, or
            (C) substituted for by a good of the same kind and quality 
        that is used as a material in the production of another good 
        that is exported to a NAFTA country.
        (6) A good provided for in subheading 1701.11.02 of the HTS that 
    is--
            (A) used as a material, or
            (B) substituted for by a good of the same kind and quality 
        that is used as a material,
    in the production of a good provided for in existing Canadian tariff 
    item 1701.99.00 or existing Mexican tariff item 1701.99.01 or 
    1701.99.99 (relating to refined sugar).
        (7) A citrus product that is exported to Canada.
        (8) A good used as a material, or substituted for by a good of 
    the same kind and quality that is used as a material, in the 
    production of--
            (A) apparel, or
            (B) a good provided for in subheading 6307.90.99 (insofar as 
        it relates to furniture moving pads), 5811.00.20, or 5811.00.30 
        of the HTS,
    that is exported to Canada and that is subject to Canada's most-
    favored-nation rate of duty upon importation into Canada.
Where in paragraph (6) a good referred to by an item is described in 
parentheses following the item, the description is provided for purposes 
of reference only.
    (b) Consequential Amendments With Delayed Effect.--
        (1) Bonded manufacturing warehouses.--The last paragraph of 
    section 311 of the Tariff Act of 1930 (19 U.S.C. 1311) is amended to 
    read as follows:
    ``No article manufactured in a bonded warehouse from materials that 
are goods subject to NAFTA drawback, as defined in section 203(a) of the 
North American Free Trade Agreement Implementation Act, may be withdrawn 
from warehouse for exportation to a NAFTA country, as defined in section 
2(4) of that Act, without assessment of a duty on the materials in their 
condition and quantity, and at their weight, at the time of importation 
into the United States. The duty shall be paid before the 61st day after 
the date of exportation, except that upon the presentation, before such 
61st day, of satisfactory evidence of the amount of any customs duties 
paid to the NAFTA country on the article, the customs duty may be waived 
or reduced (subject to section 508(b)(2)(B)) in an amount that does not 
exceed the lesser of--
        ``(1) the total amount of customs duties paid or owed on the 
    materials on importation into the United States, or
        ``(2) the total amount of customs duties paid on the article to 
    the NAFTA country.
If Canada ceases to be a NAFTA country and the suspension of the 
operation of the United States-Canada Free-Trade Agreement thereafter 
terminates, no article manufactured in a bonded warehouse, except to the 
extent that such article is made from an article that is a drawback 
eligible good under section 204(a) of the United States-Canada Free-
Trade Agreement Implementation Act of 1988, may be withdrawn from such 
warehouse for exportation to Canada during the period such Agreement is 
in operation without payment of a duty on such imported merchandise in 
its condition, and at the rate of duty in effect, at the time of 
importation.''.
        (2) Bonded smelting and refining warehouses.--Section 312 of the 
    Tariff Act of 1930 (19 U.S.C. 1312) is amended--
            (A) in paragraphs (1) and (4) of subsection (b), by striking 
        out the parenthetical matter and the final ``, or'' and by 
        adding at the end the following:
    ``; except that in the case of a withdrawal for exportation of such 
    a product to a NAFTA country, as defined in section 2(4) of the 
    North American Free Trade Agreement Implementation Act, if any of 
    the imported metal-bearing materials are goods subject to NAFTA 
    drawback, as defined in section 203(a) of that Act, the duties on 
    the materials shall be paid, and the charges against the bond 
    canceled, before the 61st day after the date of exportation; but 
    upon the presentation, before such 61st day, of satisfactory 
    evidence of the amount of any customs duties paid to the NAFTA 
    country on the product, the duties on the materials may be waived or 
    reduced (subject to section 508(b)(2)(B)) in an amount that does not 
    exceed the lesser of--
            ``(A) the total amount of customs duties owed on the 
        materials on importation into the United States, or
            ``(B) the total amount of customs duties paid to the NAFTA 
        country on the product, or'';
            (B) by adding at the end of subsection (b) the following new 
        flush sentence.
``If Canada ceases to be a NAFTA country and the suspension of the 
operation of the United States-Canada Free-Trade Agreement thereafter 
terminates, no charges against such bond may be canceled in whole or 
part upon an exportation to Canada under paragraph (1) or (4) during the 
period such Agreement is in operation except to the extent that the 
metal-bearing materials were of Canadian origin as determined in 
accordance with section 202 of the United States-Canada Free-Trade 
Agreement Implementation Act of 1988.''; and
            (C) in subsection (d) by striking out the parenthetical 
        matter and by inserting before the period the following:
``; except that in the case of a withdrawal for exportation to a NAFTA 
country, as defined in section 2(4) of the North American Free Trade 
Agreement Implementation Act, if any of the imported metal-bearing 
materials are goods subject to NAFTA drawback, as defined in section 
203(a) of that Act, charges against the bond shall be paid before the 
61st day after the date of exportation; but upon the presentation, 
before such 61st day, of satisfactory evidence of the amount of any 
customs duties paid to the NAFTA country on the product, the bond shall 
be credited (subject to section 508(b)(2)(B)) in an amount not to exceed 
the lesser of--
        ``(1) the total amount of customs duties paid or owed on the 
    materials on importation into the United States, or
        ``(2) the total amount of customs duties paid to the NAFTA 
    country on the product.
If Canada ceases to be a NAFTA country and the suspension of the 
operation of the United States-Canada Free-Trade Agreement thereafter 
terminates, no bond shall be credited under this subsection with respect 
to an exportation of a product to Canada during the period such 
Agreement is in operation except to the extent that the product is a 
drawback eligible good under section 204(a) of the United States-Canada 
Free-Trade Agreement Implementation Act of 1988''.
        (3) Drawback.--Subsections (n) and (o) of section 313 of the 
    Tariff Act of 1930 (19 U.S.C. 1313 (n) and (o)) are amended to read 
    as follows:
    ``(n)(1) For purposes of this subsection and subsection (o)--
        ``(A) the term `NAFTA Act' means the North American Free Trade 
    Agreement Implementation Act;
        ``(B) the terms `NAFTA country' and `good subject to NAFTA 
    drawback' have the same respective meanings that are given such 
    terms in sections 2(4) and 203(a) of the NAFTA Act; and
        ``(C) a refund, waiver, or reduction of duty under paragraph (2) 
    of this subsection or paragraph (1) of subsection (o) is subject to 
    section 508(b)(2)(B).
    ``(2) For purposes of subsections (a), (b), (f), (h), (p), and (q), 
if an article that is exported to a NAFTA country is a good subject to 
NAFTA drawback, no customs duties on the good may be refunded, waived, 
or reduced in an amount that exceeds the lesser of--
        ``(A) the total amount of customs duties paid or owed on the 
    good on importation into the United States, or
        ``(B) the total amount of customs duties paid on the good to the 
    NAFTA country.
    ``(3) If Canada ceases to be a NAFTA country and the suspension of 
the operation of the United States-Canada Free-Trade Agreement 
thereafter terminates, then for purposes of subsections (a), (b), (f), 
(h), (j)(2), and (q), the shipment to Canada during the period such 
Agreement is in operation of an article made from or substituted for, as 
appropriate, a drawback eligible good under section 204(a) of the United 
States-Canada Free-Trade Implementation Act of 1988 does not constitute 
an exportation.
    ``(o)(1) For purposes of subsection (g), if--
        ``(A) a vessel is built for the account and ownership of a 
    resident of a NAFTA country or the government of a NAFTA country, 
    and
        ``(B) imported materials that are used in the construction and 
    equipment of the vessel are goods subject to NAFTA drawback,
the amount of customs duties refunded, waived, or reduced on such 
materials may not exceed the lesser of the total amount of customs 
duties paid or owed on the materials on importation into the United 
States or the total amount of customs duties paid on the vessel to the 
NAFTA country.
    ``(2) If Canada ceases to be a NAFTA country and the suspension of 
the operation of the United States-Canada Free-Trade Agreement 
thereafter terminates, then for purposes of subsection (g), vessels 
built for Canadian account and ownership, or for the Government of 
Canada, may not be considered to be built for any foreign account and 
ownership, or for the government of any foreign country, except to the 
extent that the materials in such vessels are drawback eligible goods 
under section 204(a) of the United States-Canada Free-Trade 
Implementation Act of 1988.''.
        (4) Manipulation in warehouse.--Section 562 of the Tariff Act of 
    1930 (19 U.S.C. 1562) is amended--
            (A) in the second sentence by striking out ``without payment 
        of duties--'' and inserting a dash;
            (B) by striking out paragraphs (1), (2), and (3) and 
        inserting the following:
        ``(1) without payment of duties for exportation to a NAFTA 
    country, as defined in section 2(4) of the North American Free Trade 
    Agreement Implementation Act, if the merchandise is of a kind 
    described in any of paragraphs (1) through (8) of section 203(a) of 
    that Act;
        ``(2) for exportation to a NAFTA country if the merchandise 
    consists of goods subject to NAFTA drawback, as defined in section 
    203(a) of that Act, except that--
            ``(A) the merchandise may not be withdrawn from warehouse 
        without assessment of a duty on the merchandise in its condition 
        and quantity, and at its weight, at the time of withdrawal from 
        the warehouse with such additions to or deductions from the 
        final appraised value as may be necessary by reason of change in 
        condition, and
            ``(B) duty shall be paid on the merchandise before the 61st 
        day after the date of exportation, but upon the presentation, 
        before such 61st day, of satisfactory evidence of the amount of 
        any customs duties paid to the NAFTA country on the merchandise, 
        the customs duty may be waived or reduced (subject to section 
        508(b)(2)(B)) in an amount that does not exceed the lesser of--
                ``(i) the total amount of customs duties paid or owed on 
            the merchandise on importation into the United States, or
                ``(ii) the total amount of customs duties paid on the 
            merchandise to the NAFTA country;
        ``(3) without payment of duties for exportation to any foreign 
    country other than to a NAFTA country or to Canada when exports to 
    that country are subject to paragraph (4);
        ``(4) without payment of duties for exportation to Canada (if 
    that country ceases to be a NAFTA country and the suspension of the 
    operation of the United States-Canada Free-Trade Agreement 
    thereafter terminates), but the exemption from the payment of duties 
    under this paragraph applies only in the case of an exportation 
    during the period such Agreement is in operation of merchandise 
    that--
            ``(A) is only cleaned, sorted, or repacked in a bonded 
        warehouse, or
            ``(B) is a drawback eligible good under section 204(a) of 
        the United States-Canada Free-Trade Agreement Implementation Act 
        of 1988; and
        ``(5) without payment of duties for shipment to the Virgin 
    Islands, American Samoa, Wake Island, Midway Island, Kingman Reef, 
    Johnston Island or the island of Guam.''; and
            (B) in the third sentence by striking out ``paragraph (1) of 
        the preceding sentence'' and inserting ``paragraph (4) of the 
        preceding sentence''.
        (5) Foreign trade zones.--Section 3(a) of the Act of June 18, 
    1934 (commonly known as the ``Foreign Trade Zones Act''; 19 U.S.C. 
    81c(a)) is amended--
            (A) in the last proviso--
                (i) by inserting after ``That'' the following: ``, if 
            Canada ceases to be a NAFTA country and the suspension of 
            the operation of the United States-Canada Free-Trade 
            Agreement thereafter terminates,''; and
                (ii) by striking out ``on or after January 1, 1994, or 
            such later date as may be proclaimed by the President under 
            section 204(b)(2)(B) of such Act of 1988,'' and inserting 
            ``during the period such Agreement is in operation''; and
            (B) by inserting before such last proviso the following new 
        proviso: ``: Provided, further, That no merchandise that 
        consists of goods subject to NAFTA drawback, as defined in 
        section 203(a) of the North American Free Trade Agreement 
        Implementation Act, that is manufactured or otherwise changed in 
        condition shall be exported to a NAFTA country, as defined in 
        section 2(4) of that Act, without an assessment of a duty on the 
        merchandise in its condition and quantity, and at its weight, at 
        the time of its exportation (or if the privilege in the first 
        proviso to this subsection was requested, an assessment of a 
        duty on the merchandise in its condition and quantity, and at 
        its weight, at the time of its admission into the zone) and the 
        payment of the assessed duty before the 61st day after the date 
        of exportation of the article, except that upon the 
        presentation, before such 61st day, of satisfactory evidence of 
        the amount of any customs duties paid or owed to the NAFTA 
        country on the article, the customs duty may be waived or 
        reduced (subject to section 508(b)(2)(B) of the Tariff Act of 
        1930) in an amount that does not exceed the lesser of (1) the 
        total amount of customs duties paid or owed on the merchandise 
        on importation into the United States, or (2) the total amount 
        of customs duties paid on the article to the NAFTA country:''.
    (c) Consequential Amendment With Immediate Effect.--Section 313(j) 
of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is amended--
        (1) by striking out ``If'' in paragraph (2) and inserting 
    ``Subject to paragraph (4), if''; and
        (2) by adding at the end the following new paragraph:
        ``(4) Effective upon the entry into force of the North American 
    Free Trade Agreement, the exportation to a NAFTA country, as defined 
    in section 2(4) of the North American Free Trade Agreement 
    Implementation Act, of merchandise that is fungible with and 
    substituted for imported merchandise, other than merchandise 
    described in paragraphs (1) through (8) of section 203(a) of that 
    Act, shall not constitute an exportation for purposes of paragraph 
    (2).''.
    (d) Elimination of Drawback for Section 22 Fees.--Notwithstanding 
any other provision of law, the Secretary of the Treasury may not, on 
condition of export, refund or reduce a fee applied pursuant to section 
22 of the Agricultural Adjustment Act (7 U.S.C. 624) with respect to 
goods included under subsection (a) that are exported to--
        (1) Canada after December 31, 1995, for so long as it is a NAFTA 
    country; or
        (2) Mexico after December 31, 2000, for so long as it is a NAFTA 
    country.
    (e) Inapplicability to Countervailing and Antidumping Duties.--
Nothing in this section or the amendments made by it shall be considered 
to authorize the refund, waiver, or reduction of countervailing duties 
or antidumping duties imposed on an imported good.

SEC. 204. CUSTOMS USER FEES.

    Paragraph (10) of section 13031(b) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)) is amended to 
read as follows:
    ``(10)(A) The fee charged under subsection (a) (9) or (10) with 
respect to goods of Canadian origin (as determined under section 202 of 
the United States-Canada Free-Trade Agreement) when the United States-
Canada Free-Trade Agreement is in force shall be in accordance with 
section 403 of that Agreement.
    ``(B) For goods qualifying under the rules of origin set out in 
section 202 of the North American Free Trade Agreement Implementation 
Act, the fee under subsection (a) (9) or (10)--
        ``(i) may not be charged with respect to goods that qualify to 
    be marked as goods of Canada pursuant to Annex 311 of the North 
    American Free Trade Agreement, for such time as Canada is a NAFTA 
    country, as defined in section 2(4) of such Implementation Act; and
        ``(ii) may not be increased after December 31, 1993, and may not 
    be charged after June 29, 1999, with respect to goods that qualify 
    to be marked as goods of Mexico pursuant to such Annex 311, for such 
    time as Mexico is a NAFTA country.
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. ENFORCEMENT.

    (a) Recordkeeping Requirements.--Section 508 of the Tariff Act of 
1930 (19 U.S.C. 1508) is amended as follows:
        (1) Subsection (b) is amended to read as follows:
    ``(b) Exportations to Free Trade Countries.--
        ``(1) Definitions.--As used in this subsection--
            ``(A) The term `associated records' means, in regard to an 
        exported good under paragraph (2), records associated with--
                ``(i) the purchase of, cost of, value of, and payment 
            for, the good;
                ``(ii) the purchase of, cost of, value of, and payment 
            for, all material, including indirect materials, used in the 
            production of the good; and
                ``(iii) the production of the good.
        For purposes of this subparagraph, the terms `indirect 
        material', `material', `preferential tariff treatment', `used', 
        and `value' have the respective meanings given them in articles 
        415 and 514 of the North American Free Trade Agreement.
            ``(B) The term `NAFTA Certificate of Origin' means the 
        certification, established under article 501 of the North 
        American Free Trade Agreement, that a good qualifies as an 
        originating good under such Agreement.
        ``(2) Exports to nafta countries.--
            ``(A) In general.--Any person who completes and signs a 
        NAFTA Certificate of Origin for a good for which preferential 
        treatment under the North American Free Trade Agreement is 
        claimed shall make, keep, and render for examination and 
        inspection all records relating to the origin of the good 
        (including the Certificate or copies thereof) and the associated 
        records.
            ``(B) Claims for certain waivers, reductions, or refunds of 
        duties or for credit against bonds.--
                ``(i) In general.--Any person that claims with respect 
            to an article--

                    ``(I) a waiver or reduction of duty under the last 
                paragraph of section 311, section 312(b) (1) or (4), 
                section 562(2), or the last proviso to section 3(a) of 
                the Foreign Trade Zones Act;
                    ``(II) a credit against a bond under section 312(d); 
                or
                    ``(III) a refund, waiver, or reduction of duty under 
                section 313 (n)(2) or (o)(1);

            must disclose to the Customs Service the information 
            described in clause (ii).
                ``(ii) Information required.--Within 30 days after 
            making a claim described in clause (i) with respect to an 
            article, the person making the claim must disclose to the 
            Customs Service whether that person has prepared, or has 
            knowledge that another person has prepared, a NAFTA 
            Certificate of Origin for the article. If after such 30-day 
            period the person making the claim either--

                    ``(I) prepares a NAFTA Certificate of Origin for the 
                article; or
                    ``(II) learns of the existence of such a Certificate 
                for the article;

            that person, within 30 days after the occurrence described 
            in subclause (I) or (II), must disclose the occurrence to 
            the Customs Service.
                ``(iii) Action on claim.--If the Customs Service 
            determines that a NAFTA Certificate of Origin has been 
            prepared with respect to an article for which a claim 
            described in clause (i) is made, the Customs Service may 
            make such adjustments regarding the previous customs 
            treatment of the article as may be warranted.
        ``(3) Exports under the canadian agreement.--Any person who 
    exports, or who knowingly causes to be exported, any merchandise to 
    Canada during such time as the United States-Canada Free-Trade 
    Agreement is in force with respect to, and the United States applies 
    that Agreement to, Canada shall make, keep, and render for 
    examination and inspection such records (including certifications of 
    origin or copies thereof) which pertain to the exportations.''.
        (2) Subsection (c) is amended to read as follows:
    ``(c) Period of Time.--The records required by subsections (a) and 
(b) shall be kept for such periods of time as the Secretary shall 
prescribe; except that--
        ``(1) no period of time for the retention of the records 
    required under subsection (a) or (b)(3) may exceed 5 years from the 
    date of entry or exportation, as appropriate;
        ``(2) the period of time for the retention of the records 
    required under subsection (b)(2) shall be at least 5 years from the 
    date of signature of the NAFTA Certificate of Origin; and
        ``(3) records for any drawback claim shall be kept until the 3rd 
    anniversary of the date of payment of the claim.''.
        (3) Subsection (e) is amended to read as follows:
    ``(e) Subsection (b) Penalties.--
        ``(1) Relating to nafta exports.--Any person who fails to retain 
    records required by paragraph (2) of subsection (b) or the 
    regulations issued to implement that paragraph shall be liable for--
            ``(A) a civil penalty not to exceed $10,000; or
            ``(B) the general recordkeeping penalty that applies under 
        the customs laws;
    whichever penalty is higher.
        ``(2) Relating to canadian agreement exports.--Any person who 
    fails to retain the records required by paragraph (3) of subsection 
    (b) or the regulations issued to implement that paragraph shall be 
    liable for a civil penalty not to exceed $10,000.''.
    (b) Conforming Amendment.--Section 509(a)(2)(A)(ii) of the Tariff 
Act of 1930 (19 U.S.C. 1509(a)(2)(A)(ii)) is amended to read as follows:
                ``(ii) exported merchandise, or knowingly caused 
            merchandise to be exported, to a NAFTA country (as defined 
            in section 2(4) of the North American Free Trade Agreement 
            Implementation Act) or to Canada during such time as the 
            United States-Canada Free-Trade Agreement is in force with 
            respect to, and the United States applies that Agreement to, 
            Canada,''.
    (c) 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 (5) as paragraph (6); and
            (B) by inserting after paragraph (4) the following new 
        paragraph:
        ``(5) Prior disclosure regarding nafta claims.--An importer 
    shall not be subject to penalties under subsection (a) for making an 
    incorrect claim for preferential tariff treatment under section 202 
    of the North American Free Trade Agreement Implementation Act if the 
    importer--
            ``(A) has reason to believe that the NAFTA Certificate of 
        Origin (as defined in section 508(b)(1)) on which the claim was 
        based contains incorrect information; and
            ``(B) in accordance with regulations issued by the 
        Secretary, voluntarily and promptly makes a corrected 
        declaration and pays any duties owing.''; and
        (2) by adding at the end the following new subsection:
    ``(f) False Certifications Regarding Exports to NAFTA Countries.--
        ``(1)  In general.--Subject to paragraph (3), it is unlawful for 
    any person to certify falsely, by fraud, gross negligence, or 
    negligence, in a NAFTA Certificate of Origin (as defined in section 
    508(b)(1)) that a good to be exported to a NAFTA country (as defined 
    in section 2(4) of the North American Free Trade Agreement 
    Implementation Act) qualifies under the rules of origin set out in 
    section 202 of that Act.
        ``(2)  Applicable provisions.--The procedures and penalties of 
    this section that apply to a violation of subsection (a) also apply 
    to a violation of paragraph (1), except that--
            ``(A) subsection (d) does not apply, and
            ``(B) subsection (c)(5) applies only if the person 
        voluntarily and promptly provides, to all persons to whom the 
        person provided the NAFTA Certificate of Origin, written notice 
        of the falsity of the Certificate.
        ``(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 NAFTA Certificate of Origin but was later rendered 
        incorrect due to a change in circumstances; and
            ``(B) the person voluntarily and promptly provides written 
        notice of the change to all persons to whom the person provided 
        the Certificate of Origin.''.

SEC. 206. RELIQUIDATION OF ENTRIES FOR NAFTA-ORIGIN GOODS.

    Section 520 of the Tariff Act of 1930 (19 U.S.C. 1520) is amended by 
adding at the end the following new subsection:
    ``(d) Notwithstanding the fact that a valid protest was not filed, 
the Customs Service may, in accordance with regulations prescribed by 
the Secretary, reliquidate an entry to refund any excess duties paid on 
a good qualifying under the rules of origin set out in section 202 of 
the North American Free Trade Agreement Implementation Act for which no 
claim for preferential tariff treatment was made at the time of 
importation if the importer, within 1 year after the date of 
importation, files, in accordance with those regulations, a claim that 
includes--
        ``(1) a written declaration that the good qualified under those 
    rules at the time of importation;
        ``(2) copies of all applicable NAFTA Certificates of Origin (as 
    defined in section 508(b)(1)); and
        ``(3) such other documentation relating to the importation of 
    the goods as the Customs Service may require.''.

SEC. 207. COUNTRY OF ORIGIN MARKING OF NAFTA GOODS.

    (a) Amendments to Tariff Act of 1930.--Section 304 of the Tariff Act 
of 1930 (19 U.S.C. 1304) is amended--
        (1) in subsection (c)(1), by striking ``or engraving'' and 
    inserting ``engraving, or continuous paint stenciling'';
        (2) in subsection (c)(2)--
            (A) by striking ``four'' and inserting ``five''; and
            (B) by striking ``such as paint stenciling'';
        (3) in subsection (e), by striking ``or engraving'' and 
    inserting ``engraving, or an equally permanent method of marking'';
        (4) by redesignating subsection (h) as subsection (i); and
        (5) by inserting after subsection (g) the following new 
    subsection:
    ``(h) Treatment of Goods of a NAFTA Country.--
        ``(1) Application of section.--In applying this section to an 
    article that qualifies as a good of a NAFTA country (as defined in 
    section 2(4) of the North American Free Trade Agreement 
    Implementation Act) under the regulations issued by the Secretary to 
    implement Annex 311 of the North American Free Trade Agreement--
            ``(A) the exemption under subsection (a)(3)(H) shall be 
        applied by substituting `reasonably know' for `necessarily 
        know';
            ``(B) the Secretary shall exempt the good from the 
        requirements for marking under subsection (a) if the good--
                ``(i) is an original work of art, or
                ``(ii) is provided for under subheading 6904.10, heading 
            8541, or heading 8542 of the Harmonized Tariff Schedule of 
            the United States; and
            ``(C) subsection (b) does not apply to the usual container 
        of any good described in subsection (a)(3) (E) or (I) or 
        subparagraph (B) (i) or (ii) of this paragraph.
        ``(2) Petition rights of nafta exporters and producers regarding 
    marking determinations.--
            ``(A) Definitions.--For purposes of this paragraph:
                ``(i) The term `adverse marking decision' means a 
            determination by the Customs Service which an exporter or 
            producer of merchandise believes to be contrary to Annex 311 
            of the North American Free Trade Agreement.
                ``(ii) A person may not be treated as the exporter or 
            producer of merchandise regarding which an adverse marking 
            decision was made unless such person--

                    ``(I) if claiming to be the exporter, is located in 
                a NAFTA country and is required to maintain records in 
                that country regarding exportations to NAFTA countries; 
                or
                    ``(II) if claiming to be the producer, grows, mines, 
                harvests, fishes, traps, hunts, manufactures, processes, 
                or assembles such merchandise in a NAFTA country.

            ``(B) Intervention or petition regarding adverse marking 
        decisions.--If the Customs Service makes an adverse marking 
        decision regarding any merchandise, the Customs Service shall, 
        upon written request by the exporter or producer of the 
        merchandise, provide to the exporter or producer a statement of 
        the basis for the decision. If the exporter or producer believes 
        that the decision is not correct, it may intervene in any 
        protest proceeding initiated by the importer of the merchandise. 
        If the importer does not file a protest with regard to the 
        decision, the exporter or producer may file a petition with the 
        Customs Service setting forth--
                ``(i) a description of the merchandise; and
                ``(ii) the basis for its claim that the merchandise 
            should be marked as a good of a NAFTA country.
            ``(C) Effect of determination regarding decision.--If, after 
        receipt and consideration of a petition filed by an exporter or 
        producer under subparagraph (B), the Customs Service determines 
        that the adverse marking decision--
                ``(i) is not correct, the Customs Service shall notify 
            the petitioner of the determination and all merchandise 
            entered, or withdrawn from warehouse for consumption, more 
            than 30 days after the date that notice of the determination 
            under this clause is published in the weekly Custom Bulletin 
            shall be marked in conformity with the determination; or
                ``(ii) is correct, the Customs Service shall notify the 
            petitioner that the petition is denied.
            ``(D) Judicial review.--For purposes of judicial review, the 
        denial of a petition under subparagraph (C)(ii) shall be treated 
        as if it were a denial of a petition of an interested party 
        under section 516 regarding an issue arising under any of the 
        preceding provisions of this section.''.
    (b) Coordination With 1988 Act Regarding Certain Articles.--Articles 
that qualify as goods of a NAFTA country under regulations issued by the 
Secretary in accordance with Annex 311 of the Agreement are exempt from 
the marking requirements promulgated by the Secretary of the Treasury 
under section 1907(c) of the Omnibus Trade and Competitiveness Act of 
1988 (Public Law 100-418), but are subject to the requirements of 
section 304 of the Tariff Act of 1930 (19 U.S.C. 1304).

SEC. 208. PROTESTS AGAINST ADVERSE ORIGIN DETERMINATIONS.

    Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) is amended--
        (1) in subsection (c)(1) by inserting ``, or with respect to a 
    determination of origin under section 202 of the North American Free 
    Trade Agreement Implementation Act,'' after ``with respect to any 
    one category of merchandise'' in the fourth sentence;
        (2) in subsection (c)(2)--
            (A) by striking out ``or'' at the end of subparagraph (D);
            (B) by redesignating subparagraph (E) as subparagraph (F);
            (C) by inserting after subparagraph (D) the following new 
        subparagraph:
            ``(E) with respect to a determination of origin under 
        section 202 of the North American Free Trade Agreement 
        Implementation Act, any exporter or producer of the merchandise 
        subject to that determination, if the exporter or producer 
        completed and signed a NAFTA Certificate of Origin covering the 
        merchandise; or''; and
            (D) by striking ``clauses (A) through (D)'' in subparagraph 
        (F) (as redesignated by subparagraph (B)), and inserting 
        ``clauses (A) through (E)''; and
        (3) by adding at the end the following new subsections:
    ``(e) Advance Notice of Certain Determinations.--Except as provided 
in subsection (f), an exporter or producer referred to in subsection 
(c)(2)(E) shall be provided notice in advance of an adverse 
determination of origin under section 202 of the North American Free 
Trade Agreement Implementation Act. The Secretary may, by regulations, 
prescribe the time period in which such advance notice shall be issued 
and authorize the Customs Service to provide in the notice the entry 
number and any other entry information considered necessary to allow the 
exporter or producer to exercise the rights provided by this section.
    ``(f) Denial of Preferential Treatment.--If the Customs Service 
finds indications of a pattern of conduct by an exporter or producer of 
false or unsupported representations that goods qualify under the rules 
of origin set out in section 202 of the North American Free Trade 
Agreement Implementation Act--
        ``(1) the Customs Service, in accordance with regulations issued 
    by the Secretary, may deny preferential tariff treatment to entries 
    of identical goods exported or produced by that person; and
        ``(2) the advance notice requirement in subsection (e) shall not 
    apply to that person;
 until the person establishes to the satisfaction of the Customs Service 
that its representations are in conformity with section 202.''.

SEC. 209. EXCHANGE OF INFORMATION.

    Section 628 of the Tariff Act of 1930 (19 U.S.C. 1628) is amended by 
adding at the end the following new subsection:
    ``(c) The Secretary may authorize the Customs Service to exchange 
information with any government agency of a NAFTA country, as defined in 
section 2(4) of the North American Free Trade Agreement Implementation 
Act, if the Secretary--
        ``(1) reasonably believes the exchange of information is 
    necessary to implement chapter 3, 4, or 5 of the North American Free 
    Trade Agreement, and
        ``(2) obtains assurances from such country that the information 
    will be held in confidence and used only for governmental 
    purposes.''.
    SEC. 210. PROHIBITION ON DRAWBACK FOR TELEVISION PICTURE TUBES.
    Notwithstanding any other provision of law, no customs duties may be 
refunded, waived, or reduced on color cathode-ray television picture 
tubes, including video monitor cathode-ray tubes (provided for in 
subheading 8540.11.00 of the HTS), that are nonoriginating goods under 
section 202(p)(19) and are--
        (A) exported to a NAFTA country;
        (B) used as a material in the production of other goods that are 
    exported to a NAFTA country; or
        (C) substituted for by goods of the same kind and quality used 
    as a material in the production of other goods that are exported to 
    a NAFTA country.

SEC. 211. MONITORING OF TELEVISION AND PICTURE TUBE IMPORTS.

    (a) Monitoring.--Beginning on the date the Agreement enters into 
force with respect to the United States, the United States Customs 
Service shall, for a period of 5 years, monitor imports into the United 
States of articles described in subheading 8528.10 of the HTS from NAFTA 
countries and shall take action to exercise all rights of the United 
States under chapter 5 of the Agreement with respect to such imports. 
The United States Customs Service shall take appropriate action under 
chapter 5 of the Agreement with respect to such imports, including 
verifications to ensure that the rules of origin under the Agreement are 
fully complied with and that the duty drawback obligations contained in 
article 303 and Annex 303.8 of the Agreement are fully implemented and 
duties are correctly assessed.
    (b) Report to Trade Representative.--The United States Customs 
Service shall make the results of the monitoring and verification 
required by subsection (a) available to the President and the Trade 
Representative. If, based on such information, the President has reason 
to believe that articles described in subheading 8540.11 of the HTS, 
intended for ultimate consumption in the United States, are entering the 
territory of a NAFTA country inconsistent with the provisions of the 
Agreement, or have been undervalued in a manner that may raise concerns 
under United States trade laws, the President shall promptly take such 
action as may be appropriate under all relevant provisions of the 
Agreement, including article 317 and chapter 20, and under applicable 
United States trade statutes.

SEC. 212. TITLE VI AMENDMENTS.

    Any amendment in this title to a law that is also amended under 
title VI shall be made after the title VI amendment is executed.

SEC. 213. EFFECTIVE DATES.

    (a) Provisions Effective on Date of Enactment.--Section 212 and this 
section take effect on the date of the enactment of this Act.
    (b) Provisions Effective When Agreement Enters Into Force.--Section 
201, section 202, section 203 (a), (d), and (e), section 210 and section 
211, the amendment made by section 203(c), and the amendments made by 
sections 204 through 209 take effect on the date the Agreement enters 
into force with respect to the United States.
    (c) Provisions With Delayed Effective Dates.--The amendments made by 
section 203(b) apply--
        (1) with respect to exports from the United States to Canada--
            (A) on January 1, 1996, if Canada is a NAFTA country on that 
        date, and
            (B) after such date for so long as Canada continues to be a 
        NAFTA country; and
        (2) with respect to exports from the United States to Mexico--
            (A) on January 1, 2001, if Mexico is a NAFTA country on that 
        date; and
            (B) after such date for so long as Mexico continues to be a 
        NAFTA country.
       TITLE III--APPLICATION OF AGREEMENT TO SECTORS AND SERVICES
                         Subtitle A--Safeguards

        PART 1--RELIEF FROM IMPORTS BENEFITING FROM THE AGREEMENT

SEC. 301. DEFINITIONS.

    As used in this part:
        (1) Canadian article.--The term ``Canadian article'' means an 
    article that--
            (A) is an originating good under chapter 4 of the Agreement; 
        and
            (B) qualifies under the Agreement to be marked as a good of 
        Canada.
        (2) Mexican article.--The term ``Mexican article'' means an 
    article that--
            (A) is an originating good under chapter 4 of the Agreement; 
        and
            (B) qualifies under the Agreement to be marked as a good of 
        Mexico.

SEC. 302. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--
        (1) In general.--A petition requesting action under this part 
    for the purpose of adjusting to the obligations of the United States 
    under the Agreement may be filed with the International Trade 
    Commission by an entity, including a trade association, firm, 
    certified or recognized union, or group of workers, that is 
    representative of an industry. The International Trade Commission 
    shall transmit a copy of any petition filed under this subsection to 
    the Trade Representative.
        (2) Provisional relief.--An entity filing a petition under this 
    subsection may request that provisional relief be provided as if the 
    petition had been filed under section 202(a) of the Trade Act of 
    1974.
        (3) Critical circumstances.--An allegation that critical 
    circumstances exist must be included in the petition or made on or 
    before the 90th day after the date on which the investigation is 
    initiated under subsection (b).
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the International Trade 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 Canadian article or a Mexican 
article, as the case may be, is being imported into the United States in 
such increased quantities (in absolute terms) and under such conditions 
so that imports of the article, alone, constitute a substantial cause 
of--
        (1) serious injury; or
        (2) except in the case of a Canadian article, a threat of 
    serious injury;
to the domestic industry producing an article that is like, or directly 
competitive with, the imported article.
    (c) Applicable Provisions.--The provisions of--
        (1) paragraphs (1)(B), (3) (except subparagraph (A)), and (4) of 
    subsection (b);
        (2) subsection (c); and
        (3) subsection (d),
of section 202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with 
respect to any investigation initiated under subsection (b).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to--
        (1) any Canadian article or Mexican article if import relief has 
    been provided under this part with respect to that article; or
        (2) any textile or apparel article set out in Appendix 1.1 of 
    Annex 300-B of the Agreement.

SEC. 303. INTERNATIONAL TRADE COMMISSION ACTION ON PETITION.

    (a) Determination.--By no later than 120 days after the date on 
which an investigation is initiated under section 302(b) with respect to 
a petition, the International Trade Commission shall--
        (1) make the determination required under that section; and
        (2) if the determination referred to in paragraph (1) is 
    affirmative and an allegation regarding critical circumstances was 
    made under section 302(a), make a determination regarding that 
    allegation.
    (b) Additional Finding and Recommendation if Determination 
Affirmative.--If the determination made by the International Trade 
Commission under subsection (a) with respect to imports of an article is 
affirmative, the International Trade Commission shall find, and 
recommend to the President in the report required under subsection (c), 
the amount of import relief that is necessary to remedy or, except in 
the case of imports of a Canadian article, prevent the injury found by 
the International Trade Commission in the determination. The import 
relief recommended by the International Trade Commission under this 
subsection shall be limited to that described in section 304(c).
    (c) Report to President.--No 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 International Trade Commission 
shall submit to the President a report that shall include--
        (1) a statement of the basis for the determination;
        (2) dissenting and separate views; and
        (3) any finding made under subsection (b) regarding import 
    relief.
    (d) Public Notice.--Upon submitting a report to the President under 
subsection (c), the International Trade Commission shall promptly make 
public such report (with the exception of information which the 
International Trade Commission determines to be confidential) and shall 
cause a summary thereof to be published in the Federal Register.
    (e) Applicable Provisions.--For purposes of this part, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d)) 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).

SEC. 304. PROVISION OF RELIEF.

    (a) In General.--No later than the date that is 30 days after the 
date on which the President receives the report of the International 
Trade Commission containing an affirmative determination of the 
International Trade Commission under section 303(a), 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, except in the case of 
imports of a Canadian article, prevent the injury found by the 
International Trade Commission.
    (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.--The import relief (including provisional 
relief) that the President is authorized to provide under this part is 
as follows:
        (1) In the case of imports of a Canadian article--
            (A) the suspension of any further reduction provided for 
        under Annex 401.2 of the United States-Canada Free-Trade 
        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 on like 
            articles on December 31, 1988; or
            (C) in the case of a duty applied on a seasonal basis to 
        such article, an increase in the rate of duty imposed on the 
        article to a level that does not exceed the column 1 general 
        rate of duty imposed on the article for the corresponding season 
        occurring immediately before January 1, 1989.
        (2) In the case of imports of a Mexican article--
            (A) the suspension of any further reduction provided for 
        under the United States Schedule to Annex 302.2 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; or
            (C) in the case of a duty applied on a seasonal basis to 
        such article, an increase in the rate of duty imposed on the 
        article to a level that does not exceed the column 1 general 
        rate of duty imposed under the HTS on the article for the 
        corresponding season immediately occurring before the date on 
        which the Agreement enters into force.
    (d) Period of Relief.--The import relief that the President is 
authorized to provide under this section may not exceed 3 years, except 
that, if a Canadian article or Mexican article which is the subject of 
the action--
        (1) is provided for in an item for which the transition period 
    of tariff elimination set out in the United States Schedule to Annex 
    302.2 of the Agreement is greater than 10 years; and
        (2) the President determines that the affected industry has 
    undertaken adjustment and requires an extension of the period of the 
    import relief;
the President, after obtaining the advice of the International Trade 
Commission, may extend the period of the import relief for not more than 
1 year, if the duty applied during the initial period of the relief is 
substantially reduced at the beginning of the extension period.
    (e) Rate on Mexican Articles After Termination of Import Relief.--
When import relief under this part is terminated with respect to a 
Mexican article--
        (1) the rate of duty on that article after such termination and 
    on or before December 31 of the year in which termination occurs 
    shall be the rate that, according to the United States Schedule to 
    Annex 302.2 of the Agreement for the staged elimination of the 
    tariff, would have been in effect 1 year after the initiation of the 
    import relief action under section 302; and
        (2) the tariff treatment for that article after December 31 of 
    the year in which termination occurs shall be, at the discretion of 
    the President, either--
            (A) the rate of duty conforming to the applicable rate set 
        out in the United States Schedule to Annex 302.2; 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 
        United States Schedule to Annex 302.2 for the elimination of the 
        tariff.

SEC. 305. TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--Except as provided in subsection (b), no import 
relief may be provided under this part--
        (1) in the case of a Canadian article, after December 31, 1998; 
    or
        (2) in the case of a Mexican article, after the date that is 10 
    years after the date on which the Agreement enters into force;
unless the article against which the action is taken is an item for 
which the transition period for tariff elimination set out in the United 
States Schedule to Annex 302.2 of the Agreement is greater than 10 
years, in which case the period during which relief may be granted shall 
be the period of staged tariff elimination for that article.
    (b) Exception.--Import relief may be provided under this part in the 
case of a Canadian article or Mexican article after the date on which 
such relief would, but for this subsection, terminate under subsection 
(a), but only if the Government of Canada or Mexico, as the case may be, 
consents to such provision.

SEC. 306. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 304 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 307. SUBMISSION OF PETITIONS.

    A petition for import relief may be submitted to the International 
Trade Commission under--
        (1) this part;
        (2) chapter 1 of title II of the Trade Act of 1974; or
        (3) under both this part and such chapter 1 at the same time, in 
    which case the International Trade Commission shall consider such 
    petitions jointly.
    SEC. 308. SPECIAL TARIFF PROVISIONS FOR CANADIAN FRESH FRUITS AND 
      VEGETABLES.
    (a) In general.--Section 301(a) of the United States-Canada Free-
Trade Agreement Implementation Act of 1988 (19 U.S.C. 2112 note) is 
amended--
        (1) in paragraph (1), by striking ``promptly'' in the flush 
    sentence at the end thereof and inserting ``immediately'',
        (2) by redesignating paragraphs (2) through (9) as paragraphs 
    (3) through (10), respectively,
        (3) by inserting after paragraph (1) the following new 
    paragraph:
        ``(2) No later than 6 days after publication in the Federal 
    Register of the notice described in paragraph (1), the Secretary 
    shall decide whether to recommend the imposition of a temporary duty 
    to the President, and if the Secretary decides to make such a 
    recommendation, the recommendation shall be forwarded immediately to 
    the President.'',
        (4) in paragraph (5), as redesignated by paragraph (2), by 
    striking ``paragraph (3)'' and inserting ``paragraph (4)'', and
        (5) by amending paragraph (9), as redesignated by paragraph (2), 
    to read as follows:
        ``(9) For purposes of assisting the Secretary in carrying out 
    this subsection--
            ``(A) the Commissioner of Customs and the Director of the 
        Bureau of Census shall cooperate in providing the Secretary with 
        timely information and data relating to the importation of 
        Canadian fresh fruits and vegetables, and
            ``(B) importers shall report such information relating to 
        Canadian fresh fruits and vegetables to the Commissioner of 
        Customs at such time and in such manner as the Commissioner 
        requires.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of the enactment of this Act.
    SEC. 309. PRICE-BASED SNAPBACK FOR FROZEN CONCENTRATED ORANGE JUICE.
    (a) Trigger Price Determination.--
        (1) In general.--The Secretary shall determine--
            (A) each period of 5 consecutive business days in which the 
        daily price for frozen concentrated orange juice is less than 
        the trigger price; and
            (B) for each period determined under subparagraph (A), the 
        first period occurring thereafter of 5 consecutive business days 
        in which the daily price for frozen concentrated orange juice is 
        greater than the trigger price.
        (2) Notice of determinations.--The Secretary shall immediately 
    notify the Commissioner of Customs and publish notice in the Federal 
    Register of any determination under paragraph (1), and the date of 
    such publication shall be the determination date for that 
    determination.
    (b) Imports of Mexican Articles.--Whenever after any determination 
date for a determination under subsection (a)(1)(A), the quantity of 
Mexican articles of frozen concentrated orange juice that is entered 
exceeds--
        (1) 264,978,000 liters (single strength equivalent) in any of 
    calendar years 1994 through 2002; or
        (2) 340,560,000 liters (single strength equivalent) in any of 
    calendar years 2003 through 2007;
the rate of duty on Mexican articles of frozen concentrated orange juice 
that are entered after the date on which the applicable limitation in 
paragraph (1) or (2) is reached and before the determination date for 
the related determination under subsection (a)(1)(B) shall be the rate 
of duty specified in subsection (c).
    (c) Rate of Duty.--The rate of duty specified for purposes of 
subsection (b) for articles entered on any day is the rate in the HTS 
that is the lower of--
        (1) the column 1-General rate of duty in effect for such 
    articles on July 1, 1991; or
        (2) the column 1-General rate of duty in effect on that day.
    (d) Definitions.--For purposes of this section--
        (1) The term ``daily price'' means the daily closing price of 
    the New York Cotton Exchange, or any successor as determined by the 
    Secretary, for the closest month in which contracts for frozen 
    concentrated orange juice are being traded on the Exchange.
        (2) The term ``business day'' means a day in which contracts for 
    frozen concentrated orange juice are being traded on the New York 
    Cotton Exchange, or any successor as determined by the Secretary.
        (3) The term ``entered'' means entered or withdrawn from 
    warehouse for consumption, in the customs territory of the United 
    States.
        (4) The term ``frozen concentrated orange juice'' means all 
    products classifiable under subheading 2009.11.00 of the HTS.
        (5) The term ``Secretary'' means the Secretary of Agriculture.
        (6) The term ``trigger price'' means the average daily closing 
    price of the New York Cotton Exchange, or any successor as 
    determined by the Secretary, for the corresponding month during the 
    previous 5-year period, excluding the year with the highest average 
    price for the corresponding month and the year with the lowest 
    average price for the corresponding month.

             PART 2--RELIEF FROM IMPORTS FROM ALL COUNTRIES

    SEC. 311. NAFTA ARTICLE IMPACT IN IMPORT RELIEF CASES UNDER THE 
      TRADE ACT OF 1974.
    (a) In General.--If, in any investigation initiated under chapter 1 
of title II of the Trade Act of 1974, the International Trade 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 
International Trade Commission shall also find (and report to the 
President at the time such injury determination is submitted to the 
President) whether--
        (1) imports of the article from a NAFTA country, considered 
    individually, account for a substantial share of total imports; and
        (2) imports of the article from a NAFTA country, considered 
    individually or, in exceptional circumstances, imports from NAFTA 
    countries considered collectively, contribute importantly to the 
    serious injury, or threat thereof, caused by imports.
    (b) Factors.--
        (1) Substantial import share.--In determining whether imports 
    from a NAFTA country, considered individually, account for a 
    substantial share of total imports, such imports normally shall not 
    be considered to account for a substantial share of total imports if 
    that country is not among the top 5 suppliers of the article subject 
    to the investigation, measured in terms of import share during the 
    most recent 3-year period.
        (2) Application of ``contribute importantly'' standard.--In 
    determining whether imports from a NAFTA country or countries 
    contribute importantly to the serious injury, or threat thereof, the 
    International Trade Commission shall consider such factors as the 
    change in the import share of the NAFTA country or countries, and 
    the level and change in the level of imports of such country or 
    countries. In applying the preceding sentence, imports from a NAFTA 
    country or countries normally shall not be considered to contribute 
    importantly to serious injury, or the threat thereof, if the growth 
    rate of imports from such country or countries during the period in 
    which an injurious increase in imports occurred is appreciably lower 
    than the growth rate of total imports from all sources over the same 
    period.
    (c) Definition.--For purposes of this section and section 312(a), 
the term ``contribute importantly'' refers to an important cause, but 
not necessarily the most important cause.

SEC. 312. PRESIDENTIAL ACTION REGARDING NAFTA IMPORTS.

    (a) In General.--In determining whether to take action under chapter 
1 of title II of the Trade Act of 1974 with respect to imports from a 
NAFTA country, the President shall determine whether--
        (1) imports from such country, considered individually, account 
    for a substantial share of total imports; or
        (2) imports from a NAFTA country, considered individually, or in 
    exceptional circumstances imports from NAFTA countries considered 
    collectively, contribute importantly to the serious injury, or 
    threat thereof, found by the International Trade Commission.
    (b) Exclusion of NAFTA Imports.--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 shall exclude from such action imports from a 
NAFTA country if the President makes a negative determination under 
subsection (a) (1) or (2) with respect to imports from such country.
    (c) Action After Exclusion of NAFTA Country Imports.--
        (1) In general.--If the President, under subsection (b), 
    excludes imports from a NAFTA country or countries from action under 
    chapter 1 of title II of the Trade Act of 1974 but thereafter 
    determines that a surge in imports from that country or countries is 
    undermining the effectiveness of the action--
            (A) the President may take appropriate action under such 
        chapter 1 to include those imports in the action; and
            (B) any entity that is representative of an industry for 
        which such action is being taken may request the International 
        Trade Commission to conduct an investigation of the surge in 
        such imports.
        (2) Investigation.--Upon receiving a request under paragraph 
    (1)(B), the International Trade Commission shall conduct an 
    investigation to determine whether a surge in such imports 
    undermines the effectiveness of the action. The International Trade 
    Commission shall submit the findings of its investigation to the 
    President no later than 30 days after the request is received by the 
    International Trade Commission.
        (3) Definition.--For purposes of this subsection, the term 
    ``surge'' means a significant increase in imports over the trend for 
    a recent representative base period.
    (d) Condition Applicable to Quantitative Restrictions.--Any action 
taken under this section proclaiming a quantitative restriction shall 
permit the importation of a quantity or value of the article which is 
not less than the quantity or value of such article imported into the 
United States during the most recent period that is representative of 
imports of such article, with allowance for reasonable growth.

                       PART 3--GENERAL PROVISIONS

SEC. 315. PROVISIONAL RELIEF.

    Section 202(d) of the Trade Act of 1974 (19 U.S.C. 2252(d)) is 
amended--
        (1) in paragraph (1)(A) by inserting ``or citrus product'' after 
    ``agricultural product'' each place it appears;
        (2) in the text of paragraph (1)(C) that appears before 
    subclauses (I) and (II)--
            (A) by inserting ``or citrus product'' after ``agricultural 
        product'' each place it appears, and
            (B) by inserting ``or citrus product'' after ``perishable 
        product'';
        (3) by redesignating subparagraphs (A) and (B) of paragraph (5) 
    as subparagraphs (B) and (C); and
        (4) by inserting a new subparagraph (A) in paragraph (5) to read 
    as follows:
            ``(A) The term `citrus product' means any processed oranges 
        or grapefruit, or any orange or grapefruit juice, including 
        concentrate.''.

SEC. 316. MONITORING.

    For purposes of expediting an investigation concerning provisional 
relief under this subtitle or section 202 of the Trade Act of 1974 
regarding--
        (1) fresh or chilled tomatoes provided for in subheading 
    0702.00.00 of the HTS; and
        (2) fresh or chilled peppers, other than chili peppers provided 
    for in subheading 0709.60.00 of the HTS;
the International Trade Commission, until January 1, 2009, shall monitor 
imports of such goods as if proper requests for such monitoring had been 
made under subsection 202(d)(1)(C)(i) of such section 202. At the 
request of the International Trade Commission, the Secretary of 
Agriculture and the Commissioner of Customs shall provide to the 
International Trade Commission information relevant to the monitoring 
carried out under this section.
    SEC. 317. PROCEDURES CONCERNING THE CONDUCT OF INTERNATIONAL TRADE 
      COMMISSION INVESTIGATIONS.
    (a) Procedures and Rules.--The International Trade Commission shall 
adopt such procedures and rules and regulations as are necessary to 
bring its procedures into conformity with chapter 8 of the Agreement.
    (b) Conforming Amendment.--Section 202(a) of the Trade Act of 1974 
is amended by adding at the end thereof the following:
        ``(8) The procedures concerning the release of confidential 
    business information set forth in section 332(g) of the Tariff Act 
    of 1930 shall apply with respect to information received by the 
    Commission in the course of investigations conducted under this 
    chapter and part 1 of title III of the North American Free Trade 
    Agreement Implementation Act.''.

SEC. 318. EFFECTIVE DATE.

    Except as provided in section 308(b), the provisions of this 
subtitle take effect on the date the Agreement enters into force with 
respect to the United States.
                         Subtitle B--Agriculture

SEC. 321. AGRICULTURE.

    (a) Meat Import Act of 1979.--The Meat Import Act of 1979 (19 U.S.C. 
2253 note) is amended--
        (1) in subsection (b)--
            (A) by striking the last sentence in paragraph (2),
            (B) by redesignating paragraph (3) as paragraph (4) and 
        inserting after paragraph (2) the following new paragraph:
        ``(3) The term `meat articles' does not include any article 
    described in paragraph (2) that--
            ``(A) originates in a NAFTA country (as determined in 
        accordance with section 202 of the NAFTA Act), or
            ``(B) originates in Canada (as determined in accordance with 
        section 202 of the United States-Canada Free-Trade Agreement 
        Implementation Act of 1988) during such time as the United 
        States-Canada Free-Trade Agreement is in force with respect to, 
        and the United States applies such Agreement to, Canada.''; and
            (C) by inserting after paragraph (4) (as redesignated by 
        subparagraph (B) of this paragraph) the following new 
        paragraphs:
        ``(5) The term `NAFTA Act' means the North American Free Trade 
    Agreement Implementation Act.
        ``(6) The term `NAFTA country' has the meaning given such term 
    in section 2(4) of the NAFTA Act.'';
        (2) in subsection (f)(1), by striking the end period and 
    inserting ``, except that the President may exclude any such article 
    originating in a NAFTA country (as determined in accordance with 
    section 202 of the NAFTA Act) or, if paragraph (3)(B) applies, any 
    such article originating in Canada as determined in accordance with 
    such paragraph (3)(B).''; and
        (3) in subsection (i), by inserting ``and Mexico'' after 
    ``Canada'' each place it appears.
    (b) Section 22 of the Agricultural Adjustment Act.--
        (1) In general.--The President may, pursuant to article 309 and 
    Annex 703.2 of the Agreement, exempt from any quantitative 
    limitation or fee imposed pursuant to section 22 of the Agricultural 
    Adjustment Act (7 U.S.C. 624), reenacted with amendments by the 
    Agricultural Marketing Agreement Act of 1937, any article which 
    originates in Mexico, if Mexico is a NAFTA country.
        (2) Qualification of articles.--The determination of whether an 
    article originates in Mexico shall be made in accordance with 
    section 202, except that operations performed in, or materials 
    obtained from, any country other than the United States or Mexico 
    shall be treated as if performed in or obtained from a country other 
    than a NAFTA country.
    (c) Tariff Rate Quotas.--In implementing the tariff rate quotas set 
out in the United States Schedule to Annex 302.2 of the Agreement, the 
President shall take such action as may be necessary to ensure that 
imports of agricultural goods do not disrupt the orderly marketing of 
commodities in the United States.
    (d) Peanuts.--
        (1) Effect of the agreement.--
            (A) In general.--Nothing in the Agreement or this Act 
        reduces or eliminates--
                (i) any penalty required under section 358e(d) of the 
            Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a(d)); or
                (ii) any requirement under Marketing Agreement No. 146, 
            Regulating the Quality of Domestically Produced Peanuts, on 
            peanuts in the domestic market, pursuant to section 108B(f) 
            of the Agricultural Act of 1949 (7 U.S.C. 1445c-3(f)).
            (B) Reentry of exported peanuts.--Paragraph (6) of section 
        358e(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1359a(d)(6)) is amended to read as follows:
        ``(6) Reentry of exported peanuts.--
            ``(A) Penalty.--If any additional peanuts exported by a 
        handler are reentered into the United States in commercial 
        quantities as determined by the Secretary, the importer of the 
        peanuts shall be subject to a penalty at a rate equal to 140 
        percent of the loan level for quota peanuts on the quantity of 
        peanuts reentered.
            ``(B) Records.--Each person, firm, or handler who imports 
        peanuts into the United States shall maintain such records and 
        documents as are required by the Secretary to ensure compliance 
        with this subsection.''.
        (2) Consultations on imports.--It is the sense of Congress that 
    the United States should request consultations in the Working Group 
    on Emergency Action, established in the Understanding Between the 
    Parties to the North American Free Trade Agreement Concerning 
    Chapter Eight--Emergency Action, if imports of peanuts exceed the 
    in-quota quantity under a tariff rate quota set out in the United 
    States Schedule to Annex 302.2 of the Agreement concerning whether--
            (A) the increased imports of peanuts constitute a 
        substantial cause of, or contribute importantly to, serious 
        injury, or threat of serious injury, to the domestic peanut 
        industry; and
            (B) recourse under Chapter Eight of the Agreement or Article 
        XIX of the General Agreement on Tariffs and Trade is 
        appropriate.
    (e) Fresh Fruits, Vegetables, and Cut Flowers.--
        (1) In general.--The Secretary of Agriculture shall collect and 
    compile the information specified under paragraph (3), if reasonably 
    available, from appropriate Federal departments and agencies and the 
    relevant counterpart ministries of the Government of Mexico.
        (2) Designation of an office.--The Secretary of Agriculture 
    shall designate an office within the United States Department of 
    Agriculture to be responsible for maintaining and disseminating, in 
    a timely manner, the data accumulated for verifying citrus, fruit, 
    vegetable, and cut flower trade between the United States and 
    Mexico. The information shall be made available to the public and 
    the NAFTA Agriculture Committee Working Groups.
        (3) Information collected.--The information to be collected, if 
    reasonably available, includes--
            (A) monthly fresh fruit, fresh vegetable, fresh citrus, and 
        processed citrus product import and export data;
            (B) monthly citrus juice production and export data;
            (C) data on inspections of shipments of citrus, vegetables, 
        and cut flowers entering the United States from Mexico; and
            (D) in the case of fruits, vegetables, and cut flowers 
        entering the United States from Mexico, data regarding--
                (i) planted and harvested acreage; and
                (ii) wholesale prices, quality, and grades.
    (f) End-Use Certificates.--
        (1) In general.--The Secretary of Agriculture (referred to in 
    this subsection as the ``Secretary'') shall implement, in 
    coordination with the Commissioner of Customs, a program requiring 
    that end-use certificates be included in the documentation covering 
    the entry into, or the withdrawal from a warehouse for consumption 
    in, the customs territory of the United States--
            (A) of any wheat that is a product of any foreign country or 
        instrumentality that requires, as of the effective date of this 
        subsection, end-use certificates for imports of wheat that is a 
        product of the United States (referred to in this subsection as 
        ``United States-produced wheat''); and
            (B) of any barley that is a product of any foreign country 
        or instrumentality that requires, as of the effective date of 
        this subsection, end-use certificates for imports of barley that 
        is a product of the United States (referred to in this 
        subsection as ``United States-produced barley'').
        (2) Regulations.--The Secretary shall prescribe by regulation 
    such requirements regarding the information to be included in end-
    use certificates as may be necessary and appropriate to carry out 
    this subsection.
        (3) Producer protection determination.--At any time after the 
    effective date of the requirements established under paragraph (1), 
    the Secretary may, subject to paragraph (5), suspend the 
    requirements when making a determination, after consultation with 
    domestic producers, that the program implemented under this 
    subsection has directly resulted in--
            (A) the reduction of income to the United States producers 
        of agricultural commodities; or
            (B) the reduction of the competitiveness of United States 
        agricultural commodities in the world export markets.
        (4) Suspension of requirements.--
            (A) Wheat.--If a foreign country or instrumentality that 
        requires end-use certificates for imports of United States-
        produced wheat as of the effective date of the requirement under 
        paragraph (1)(A) eliminates the requirement, the Secretary shall 
        suspend the requirement under paragraph (1)(A) beginning 30 
        calendar days after suspension by the foreign country or 
        instrumentality.
            (B) Barley.--If a foreign country or instrumentality that 
        requires end-use certificates for imports of United States-
        produced barley as of the effective date of the requirement 
        under paragraph (1)(B) eliminates the requirement, the Secretary 
        shall suspend the requirement under paragraph (1)(B) beginning 
        30 calendar days after suspension by the foreign country or 
        instrumentality.
        (5) Report to congress.--The Secretary shall not suspend the 
    requirements established under paragraph (1) under circumstances 
    identified in paragraph (3) before the Secretary submits a report to 
    Congress detailing the determination made under paragraph (3) and 
    the reasons for making the determination.
        (6) Compliance.--It shall be a violation of section 1001 of 
    title 18, United States Code, for a person to engage in fraud or 
    knowingly violate this subsection or a regulation implementing this 
    subsection.
        (7) Effective date.--This subsection shall become effective on 
    the date that is 120 days after the date of enactment of this Act.
    (g) Agricultural Fellowship Program.--Section 1542(d) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 
U.S.C. 5622 note) is amended by adding at the end the following new 
paragraph:
        ``(3) Agricultural fellowships for nafta countries.--
            ``(A) In general.--The Secretary shall grant fellowships to 
        individuals from countries that are parties to the North 
        American Free Trade Agreement (referred to in this paragraph as 
        `NAFTA') to study agriculture in the United States, and to 
        individuals in the United States to study agriculture in other 
        NAFTA countries.
            ``(B) Purpose.--The purpose of fellowships granted under 
        this paragraph is--
                ``(i) to allow the recipients to expand their knowledge 
            and understanding of agricultural systems and practices in 
            other NAFTA countries;
                ``(ii) to facilitate the improvement of agricultural 
            systems in NAFTA countries; and
                ``(iii) to establish and expand agricultural trade 
            linkages between the United States and other NAFTA 
            countries.
            ``(C) Eligible recipients.--The Secretary may provide 
        fellowships under this paragraph to agricultural producers and 
        consultants, government officials, and other individuals from 
        the private and public sectors.
            ``(D) Acceptance of gifts.--The Secretary may accept money, 
        funds, property, and services of every kind by gift, devise, 
        bequest, grant, or otherwise, and may in any manner, dispose of 
        all of the holdings and use the receipts generated from the 
        disposition to carry out this paragraph. Receipts under this 
        paragraph shall remain available until expended.
            ``(E) Authorization of appropriation.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        paragraph.''.
    (h) Assistance for Affected Farmworkers.--
        (1) In general.--Subject to paragraph (3), if at any time the 
    Secretary of Agriculture determines that the implementation of the 
    Agreement has caused low-income migrant or seasonal farmworkers to 
    lose income, the Secretary may make available grants, not to exceed 
    $20,000,000 for any fiscal year, to public agencies or private 
    organizations with tax-exempt status under section 501(c)(3) of the 
    Internal Revenue Code of 1986, that have experience in providing 
    emergency services to low-income migrant or seasonal farmworkers. 
    Emergency services to be provided with assistance received under 
    this subsection may include such types of assistance as the 
    Secretary determines to be necessary and appropriate.
        (2) Definition.--As used in this subsection, the term ``low-
    income migrant or seasonal farmworker'' shall have the same meaning 
    as provided in section 2281(b) of the Food, Agriculture, 
    Conservation, and Trade Act of 1990 (42 U.S.C. 5177a(b)).
        (3) Authorization of appropriations.--There are authorized to be 
    appropriated $20,000,000 for each fiscal year to carry out this 
    subsection.
    (i) Biennial Report on Effects of the Agreement on American 
Agriculture.--
        (1) In general.--The Secretary of Agriculture shall prepare a 
    biennial report on the effects of the Agreement on United States 
    producers of agricultural commodities and on rural communities 
    located in the United States.
        (2) Contents of report.--The report required under this 
    subsection shall include--
            (A) an assessment of the effects of implementing the 
        Agreement on the various agricultural commodities affected by 
        the Agreement, on a commodity-by-commodity basis;
            (B) an assessment of the effects of implementing the 
        Agreement on investments made in United States agriculture and 
        on rural communities located in the United States;
            (C) an assessment of the effects of implementing the 
        Agreement on employment in United States agriculture, including 
        any gains or losses of jobs in businesses directly or indirectly 
        related to United States agriculture; and
            (D) such other information and data as the Secretary 
        determines appropriate.
        (3) Submission of Report.--The Secretary shall furnish the 
    report required under this subsection to the Committee on 
    Agriculture, Nutrition, and Forestry of the Senate and to the 
    Committee on Agriculture of the House of Representatives. The report 
    shall be due every 2 years and shall be submitted by March 1 of the 
    year in which the report is due. The first report shall be due by 
    March 1, 1997, and the final report shall be due by March 1, 2011.
                    Subtitle C--Intellectual Property

SEC. 331. TREATMENT OF INVENTIVE ACTIVITY.

    Section 104 of title 35, United States Code, is amended to read as 
follows:

``§104. Invention made abroad

    ``(a) In General.--In proceedings in the Patent and Trademark 
Office, in the courts, and before any other competent authority, an 
applicant for a patent, or a patentee, may not establish a date of 
invention by reference to knowledge or use thereof, or other activity 
with respect thereto, in a foreign country other than a NAFTA country, 
except as provided in sections 119 and 365 of this title. Where an 
invention was made by a person, civil or military, while domiciled in 
the United States or a NAFTA country and serving in any other country in 
connection with operations by or on behalf of the United States or a 
NAFTA country, the person shall be entitled to the same rights of 
priority in the United States with respect to such invention as if such 
invention had been made in the United States or a NAFTA country. To the 
extent that any information in a NAFTA country concerning knowledge, 
use, or other activity relevant to proving or disproving a date of 
invention has not been made available for use in a proceeding in the 
Office, a court, or any other competent authority to the same extent as 
such information could be made available in the United States, the 
Commissioner, court, or such other authority shall draw appropriate 
inferences, or take other action permitted by statute, rule, or 
regulation, in favor of the party that requested the information in the 
proceeding.
    ``(b) Definition.--As used in this section, the term `NAFTA country' 
has the meaning given that term in section 2(4) of the North American 
Free Trade Agreement Implementation Act.''.

SEC. 332. RENTAL RIGHTS IN SOUND RECORDINGS.

    Section 4 of the Record Rental Amendment of 1984 (17 U.S.C. 109 
note) is amended by striking out subsection (c).
    SEC. 333. NONREGISTRABILITY OF MISLEADING GEOGRAPHIC INDICATIONS.
    (a) Marks Not Registrable on the Principal Register.--Section 2 of 
the Act entitled ``An Act to provide for the registration and protection 
of trademarks used in commerce, to carry out the provisions of certain 
international conventions, and for other purposes'', approved July 5, 
1946, commonly referred to as the Trademark Act of 1946 (15 U.S.C. 
1052(e)), is amended--
        (1) by amending subsection (e) to read as follows:
    ``(e) Consists of a mark which (1) when used on or in connection 
with the goods of the applicant is merely descriptive or deceptively 
misdescriptive of them, (2) when used on or in connection with the goods 
of the applicant is primarily geographically descriptive of them, except 
as indications of regional origin may be registrable under section 4, 
(3) when used on or in connection with the goods of the applicant is 
primarily geographically deceptively misdescriptive of them, or (4) is 
primarily merely a surname.''; and
        (2) in subsection (f)--
            (A) by striking out ``and (d)'' and inserting ``(d), and 
        (e)(3)''; and
            (B) by adding at the end the following new sentence: 
        ``Nothing in this section shall prevent the registration of a 
        mark which, when used on or in connection with the goods of the 
        applicant, is primarily geographically deceptively 
        misdescriptive of them, and which became distinctive of the 
        applicant's goods in commerce before the date of the enactment 
        of the North American Free Trade Agreement Implementation 
        Act.''.
    (b) Supplemental Register.--Section 23(a) of the Trademark Act of 
1946 (15 U.S.C. 1091(a)) is amended--
        (1) by striking out ``and (d)'' and inserting ``(d), and 
    (e)(3)''; and
        (2) by adding at the end the following new sentence: ``Nothing 
    in this section shall prevent the registration on the supplemental 
    register of a mark, capable of distinguishing the applicant's goods 
    or services and not registrable on the principal register under this 
    Act, that is declared to be unregistrable under section 2(e)(3), if 
    such mark has been in lawful use in commerce by the owner thereof, 
    on or in connection with any goods or services, since before the 
    date of the enactment of the North American Free Trade Agreement 
    Implementation Act.''.

SEC. 334. MOTION PICTURES IN THE PUBLIC DOMAIN.

    (a) In General.--Chapter 1 of title 17, United States Code, is 
amended by inserting after section 104 the following new section:

``§104A. Copyright in certain motion pictures

    ``(a) Restoration of Copyright.--Subject to subsections (b) and 
(c)--
        ``(1) any motion picture that is first fixed or published in the 
    territory of a NAFTA country as defined in section 2(4) of the North 
    American Free Trade Agreement Implementation Act to which Annex 
    1705.7 of the North American Free Trade Agreement applies, and
        ``(2) any work included in such motion picture that is first 
    fixed in or published with such motion picture,
that entered the public domain in the United States because it was first 
published on or after January 1, 1978, and before March 1, 1989, without 
the notice required by section 401, 402, or 403 of this title, the 
absence of which has not been excused by the operation of section 405 of 
this title, as such sections were in effect during that period, shall 
have copyright protection under this title for the remainder of the term 
of copyright protection to which it would have been entitled in the 
United States had it been published with such notice.
    ``(b) Effective Date of Protection.--The protection provided under 
subsection (a) shall become effective, with respect to any motion 
picture or work included in such motion picture meeting the criteria of 
that subsection, 1 year after the date on which the North American Free 
Trade Agreement enters into force with respect to, and the United States 
applies the Agreement to, the country in whose territory the motion 
picture was first fixed or published if, before the end of that 1-year 
period, the copyright owner in the motion picture or work files with the 
Copyright Office a statement of intent to have copyright protection 
restored under subsection (a). The Copyright Office shall publish in the 
Federal Register promptly after that effective date a list of motion 
pictures, and works included in such motion pictures, for which 
protection is provided under subsection (a).
    ``(c) Use of Previously Owned Copies.--A national or domiciliary of 
the United States who, before the date of the enactment of the North 
American Free Trade Agreement Implementation Act, made or acquired 
copies of a motion picture, or other work included in such motion 
picture, that is subject to protection under subsection (a), may sell or 
distribute such copies or continue to perform publicly such motion 
picture and other work without liability for such sale, distribution, or 
performance, for a period of 1 year after the date on which the list of 
motion pictures, and works included in such motion pictures, that are 
subject to protection under subsection (a) is published in the Federal 
Register under subsection (b).''.
    (b) Conforming Amendment.--The table of sections at the beginning of 
chapter 1 of title 17, United States Code, is amended by inserting after 
the item relating to section 104 the following new item:
``104A. Copyright in certain motion pictures.''.

SEC. 335. EFFECTIVE DATES.

    (a) in General.--Subject to subsections (b) and (c), the amendments 
made by this subtitle take effect on the date the Agreement enters into 
force with respect to the United States.
    (b) Section 331.--The amendments made by section 331 shall apply to 
all patent applications that are filed on or after the date of the 
enactment of this Act: Provided, That an applicant for a patent, or a 
patentee, may not establish a date of invention by reference to 
knowledge or use thereof, or other activity with respect thereto, in a 
NAFTA country, except as provided in sections 119 and 365 of title 35, 
United States Code, that is earlier than the date of the enactment of 
this Act.
    (c) Section 333.--The amendments made by section 333 shall apply 
only to trademark applications filed on or after the date of the 
enactment of this Act.
             Subtitle D--Temporary Entry of Business Persons

SEC. 341. TEMPORARY ENTRY.

    (a) Nonimmigrant Traders and Investors.--Upon a basis of reciprocity 
secured by the Agreement, an alien who is a citizen of Canada or Mexico, 
and the spouse and children of any such alien if accompanying or 
following to join such alien, may, if otherwise eligible for a visa and 
if otherwise admissible into the United States under the Immigration and 
Nationality Act (8 U.S.C. 1101 et seq.), be considered to be 
classifiable as a nonimmigrant under section 101(a)(15)(E) of such Act 
(8 U.S.C. 1101(a)(15)(E)) if entering solely for a purpose specified in 
Section B of Annex 1603 of the Agreement, but only if any such purpose 
shall have been specified in such Annex on the date of entry into force 
of the Agreement. For purposes of this section, the term ``citizen of 
Mexico'' means ``citizen'' as defined in Annex 1608 of the Agreement.
    (b) Nonimmigrant Professionals and Annual Numerical Limit.--Section 
214 of the Immigration and Nationality Act (8 U.S.C. 1184) is amended by 
redesignating subsection (e) as paragraph (1) of subsection (e) and 
adding after such paragraph (1), as redesignated, the following new 
paragraphs:
    ``(2) An alien who is a citizen of Canada or Mexico, and the spouse 
and children of any such alien if accompanying or following to join such 
alien, who seeks to enter the United States under and pursuant to the 
provisions of Section D of Annex 1603 of the North American Free Trade 
Agreement (in this subsection referred to as `NAFTA') to engage in 
business activities at a professional level as provided for in such 
Annex, may be admitted for such purpose under regulations of the 
Attorney General promulgated after consultation with the Secretaries of 
State and Labor. For purposes of this Act, including the issuance of 
entry documents and the application of subsection (b), such alien shall 
be treated as if seeking classification, or classifiable, as a 
nonimmigrant under section 101(a)(15). The admission of an alien who is 
a citizen of Mexico shall be subject to paragraphs (3), (4), and (5). 
For purposes of this paragraph and paragraphs (3), (4), and (5), the 
term `citizen of Mexico' means `citizen' as defined in Annex 1608 of 
NAFTA.
    ``(3) The Attorney General shall establish an annual numerical limit 
on admissions under paragraph (2) of aliens who are citizens of Mexico, 
as set forth in Appendix 1603.D.4 of Annex 1603 of the NAFTA. Subject to 
paragraph (4), the annual numerical limit--
        ``(A) beginning with the second year that NAFTA is in force, may 
    be increased in accordance with the provisions of paragraph 5(a) of 
    Section D of such Annex, and
        ``(B) shall cease to apply as provided for in paragraph 3 of 
    such Appendix.
    ``(4) The annual numerical limit referred to in paragraph (3) may be 
increased or shall cease to apply (other than by operation of paragraph 
3 of such Appendix) only if--
        ``(A) the President has obtained advice regarding the proposed 
    action from the appropriate advisory committees established under 
    section 135 of the Trade Act of 1974 (19 U.S.C. 2155);
        ``(B) the President has submitted a report to the Committee on 
    the Judiciary of the Senate and the Committee on the Judiciary of 
    the House of Representatives that sets forth--
            ``(i) the action proposed to be taken and the reasons 
        therefor, and
            ``(ii) the advice obtained under subparagraph (A);
        ``(C) a period of at least 60 calendar days that begins on the 
    first day on which the President has met the requirements of 
    subparagraphs (A) and (B) with respect to such action has expired; 
    and
        ``(D) the President has consulted with such committees regarding 
    the proposed action during the period referred to in subparagraph 
    (C).
    ``(5) During the period that the provisions of Appendix 1603.D.4 of 
Annex 1603 of the NAFTA apply, the entry of an alien who is a citizen of 
Mexico under and pursuant to the provisions of Section D of Annex 1603 
of NAFTA shall be subject to the attestation requirement of section 
212(m), in the case of a registered nurse, or the application 
requirement of section 212(n), in the case of all other professions set 
out in Appendix 1603.D.1 of Annex 1603 of NAFTA, and the petition 
requirement of subsection (c), to the extent and in the manner 
prescribed in regulations promulgated by the Secretary of Labor, with 
respect to sections 212(m) and 212(n), and the Attorney General, with 
respect to subsection (c).''.
    (c) Labor Disputes.--Section 214 of the Immigration and Nationality 
Act (8 U.S.C. 1184) is amended by adding at the end the following new 
subsection:
    ``(j) Notwithstanding any other provision of this Act, an alien who 
is a citizen of Canada or Mexico who seeks to enter the United States 
under and pursuant to the provisions of Section B, Section C, or Section 
D of Annex 1603 of the North American Free Trade Agreement, shall not be 
classified as a nonimmigrant under such provisions if there is in 
progress a strike or lockout in the course of a labor dispute in the 
occupational classification at the place or intended place of 
employment, unless such alien establishes, pursuant to regulations 
promulgated by the Attorney General, that the alien's entry will not 
affect adversely the settlement of the strike or lockout or the 
employment of any person who is involved in the strike or lockout. 
Notice of a determination under this subsection shall be given as may be 
required by paragraph 3 of article 1603 of such Agreement. For purposes 
of this subsection, the term `citizen of Mexico' means `citizen' as 
defined in Annex 1608 of such Agreement.''.

SEC. 342. EFFECTIVE DATE.

    The provisions of this subtitle take effect on the date the 
Agreement enters into force with respect to the United States.
                          Subtitle E--Standards

                     PART 1--STANDARDS AND MEASURES

    SEC. 351. STANDARDS AND SANITARY AND PHYTOSANITARY MEASURES.
    (a) In General.--Title IV of the Trade Agreements Act of 1979 (19 
U.S.C. 2531 et seq.) is amended by inserting at the end the following 
new subtitle:
``Subtitle E--Standards and Measures Under the North American Free Trade 
                                Agreement

            ``CHAPTER 1--SANITARY AND PHYTOSANITARY MEASURES

``SEC. 461. GENERAL.

    ``Nothing in this chapter may be construed--
        ``(1) to prohibit a Federal agency or State agency from engaging 
    in activity related to sanitary or phytosanitary measures to protect 
    human, animal, or plant life or health; or
        ``(2) to limit the authority of a Federal agency or State agency 
    to determine the level of protection of human, animal, or plant life 
    or health the agency considers appropriate.

``SEC. 462. INQUIRY POINT.

    ``The standards information center maintained under section 414 
shall, in addition to the functions specified therein, make available to 
the public relevant documents, at such reasonable fees as the Secretary 
of Commerce may prescribe, and information regarding--
        ``(1) any sanitary or phytosanitary measure of general 
    application, including any control or inspection procedure or 
    approval procedure proposed, adopted, or maintained by a Federal or 
    State agency;
        ``(2) the procedures of a Federal or State agency for risk 
    assessment, and factors the agency considers in conducting the 
    assessment and in establishing the levels of protection that the 
    agency considers appropriate;
        ``(3) the membership and participation of the Federal Government 
    and State governments in international and regional sanitary and 
    phytosanitary organizations and systems, and in bilateral and 
    multilateral arrangements regarding sanitary and phytosanitary 
    measures, and the provisions of those systems and arrangements; and
        ``(4) the location of notices of the type required under article 
    719 of the NAFTA, or where the information contained in such notices 
    can be obtained.

``SEC. 463. CHAPTER DEFINITIONS.

    ``Notwithstanding section 451, for purposes of this chapter--
        ``(1) Animal.--The term `animal' includes fish, bees, and wild 
    fauna.
        ``(2) Approval procedure.--The term `approval procedure' means 
    any registration, notification, or other mandatory administrative 
    procedure for--
            ``(A) approving the use of an additive for a stated purpose 
        or under stated conditions, or
            ``(B) establishing a tolerance for a stated purpose or under 
        stated conditions for a contaminant,
    in a food, beverage, or feedstuff prior to permitting the use of the 
    additive or the marketing of a food, beverage, or feedstuff 
    containing the additive or contaminant.
        ``(3) Contaminant.--The term `contaminant' includes pesticide 
    and veterinary drug residues and extraneous matter.
        ``(4) Control or inspection procedure.--The term `control or 
    inspection procedure' means any procedure used, directly or 
    indirectly, to determine that a sanitary or phytosanitary measure is 
    fulfilled, including sampling, testing, inspection, evaluation, 
    verification, monitoring, auditing, assurance of conformity, 
    accreditation, registration, certification, or other procedure 
    involving the physical examination of a good, of the packaging of a 
    good, or of the equipment or facilities directly related to 
    production, marketing, or use of a good, but does not mean an 
    approval procedure.
        ``(5) Plant.--The term `plant' includes wild flora.
        ``(6) Risk assessment.--The term `risk assessment' means an 
    evaluation of--
            ``(A) the potential for the introduction, establishment or 
        spread of a pest or disease and associated biological and 
        economic consequences; or
            ``(B) the potential for adverse effects on human or animal 
        life or health arising from the presence of an additive, 
        contaminant, toxin or disease-causing organism in a food, 
        beverage, or feedstuff.
        ``(7) Sanitary or phytosanitary measure.--
            ``(A) In general.--The term `sanitary or phytosanitary 
        measure' means a measure to--
                ``(i) protect animal or plant life or health in the 
            United States from risks arising from the introduction, 
            establishment, or spread of a pest or disease;
                ``(ii) protect human or animal life or health in the 
            United States from risks arising from the presence of an 
            additive, contaminant, toxin, or disease-causing organism in 
            a food, beverage, or feedstuff;
                ``(iii) protect human life or health in the United 
            States from risks arising from a disease-causing organism or 
            pest carried by an animal or plant, or a product thereof; or
                ``(iv) prevent or limit other damage in the United 
            States arising from the introduction, establishment, or 
            spread of a pest.
            ``(B) Form.--The form of a sanitary or phytosanitary measure 
        includes--
                ``(i) end product criteria;
                ``(ii) a product-related processing or production 
            method;
                ``(iii) a testing, inspection, certification, or 
            approval procedure;
                ``(iv) a relevant statistical method;
                ``(v) a sampling procedure;
                ``(vi) a method of risk assessment;
                ``(vii) a packaging and labeling requirement directly 
            related to food safety; and
                ``(viii) a quarantine treatment, such as a relevant 
            requirement associated with the transportation of animals or 
            plants or with material necessary for their survival during 
            transportation.

                 ``CHAPTER 2--STANDARDS-RELATED MEASURES

``SEC. 471. GENERAL.

    ``(a) No Bar To Engaging in Standards Activity.--Nothing in this 
chapter shall be construed--
        ``(1) to prohibit a Federal agency from engaging in activity 
    related to standards-related measures, including any such measure 
    relating to safety, the protection of human, animal, or plant life 
    or health, the environment or consumers; or
        ``(2) to limit the authority of a Federal agency to determine 
    the level it considers appropriate of safety or of protection of 
    human, animal, or plant life or health, the environment or 
    consumers.
    ``(b) Exclusion.--This chapter does not apply to--
        ``(1) technical specifications prepared by a Federal agency for 
    production or consumption requirements of the agency; or
        ``(2) sanitary or phytosanitary measures under chapter 1.

``SEC. 472. INQUIRY POINT.

    ``The standards information center maintained under section 414 
shall, in addition to the functions specified therein, make available to 
the public relevant documents, at such reasonable fees as the Secretary 
of Commerce may prescribe, and information regarding--
        ``(1) the membership and participation of the Federal 
    Government, State governments, and relevant nongovernmental bodies 
    in the United States in international and regional standardizing 
    bodies and conformity assessment systems, and in bilateral and 
    multilateral arrangements regarding standards-related measures, and 
    the provisions of those systems and arrangements;
        ``(2) the location of notices of the type required under article 
    909 of the NAFTA, or where the information contained in such notice 
    can be obtained; and
        ``(3) the Federal agency procedures for assessment of risk, and 
    factors the agency considers in conducting the assessment and 
    establishing the levels of protection that the agency considers 
    appropriate.

``SEC. 473. CHAPTER DEFINITIONS.

    ``Notwithstanding section 451, for purposes of this chapter--
        ``(1) Approval procedure.--The term `approval procedure' means 
    any registration, notification, or other mandatory administrative 
    procedure for granting permission for a good or service to be 
    produced, marketed, or used for a stated purpose or under stated 
    conditions.
        ``(2) Conformity assessment procedure.--The term `conformity 
    assessment procedure' means any procedure used, directly or 
    indirectly, to determine that a technical regulation or standard is 
    fulfilled, including sampling, testing, inspection, evaluation, 
    verification, monitoring, auditing, assurance of conformity, 
    accreditation, registration, or approval used for such a purpose, 
    but does not mean an approval procedure.
        ``(3) Objective.--The term `objective' includes--
            ``(A) safety,
            ``(B) protection of human, animal, or plant life or health, 
        the environment or consumers, including matters relating to 
        quality and identifiability of goods or services, and
            ``(C) sustainable development,
    but does not include the protection of domestic production.
        ``(4) Service.--The term `service' means a land transportation 
    service or a telecommunications service.
        ``(5) Standard.--The term `standard' means--
            ``(A) characteristics for a good or a service,
            ``(B) characteristics, rules, or guidelines for--
                ``(i) processes or production methods relating to such 
            good, or
                ``(ii) operating methods relating to such service, and
            ``(C) provisions specifying terminology, symbols, packaging, 
        marking, or labelling for--
                ``(i) a good or its related process or production 
            methods, or
                ``(ii) a service or its related operating methods,
    for common and repeated use, including explanatory and other related 
    provisions set out in a document approved by a standardizing body, 
    with which compliance is not mandatory.
        ``(6) Standards-related measure.--The term `standards-related 
    measure' means a standard, technical regulation, or conformity 
    assessment procedure.
        ``(7) Technical regulation.--The term `technical regulation' 
    means--
            ``(A) characteristics or their related processes and 
        production methods for a good,
            ``(B) characteristics for a service or its related operating 
        methods, or
            ``(C) provisions specifying terminology, symbols, packaging, 
        marking, or labelling for--
                ``(i) a good or its related process or production 
            method, or
                ``(ii) a service or its related operating method,
    set out in a document, including applicable administrative, 
    explanatory, and other related provisions, with which compliance is 
    mandatory.
        ``(8) Telecommunications service.--The term `telecommunications 
    service' means a service provided by meansP
of the transmission and reception of signals by any electromagnetic 
means, but does not mean the cable, broadcast, or other electromagnetic 
distribution of radio or television programming to the public generally.

                    ``CHAPTER 3--SUBTITLE DEFINITIONS

``SEC. 481. DEFINITIONS.

    ``Notwithstanding section 451, for purposes of this subtitle--
        ``(1) NAFTA.--The term `NAFTA' means the North American Free 
    Trade Agreement.
        ``(2) State.--The term `State' means any of the several States, 
    the District of Columbia, and the Commonwealth of Puerto Rico.''.
    (b) Technical Amendments.--
        (1) Definition of trade representative.--Section 451(12) of the 
    Trade Agreements Act of 1979 is amended to read as follows:
        ``(12) Trade representative.--The term `Trade Representative' 
    means the United States Trade Representative.''.
        (2) Conforming amendments.--Title IV of the Trade Agreement Act 
    of 1979 is further amended--
            (A) by striking out ``Special Representative'' each place it 
        appears and inserting ``Trade Representative''; and
            (B) in the section heading to section 411, by striking out 
        ``special representative'' and inserting ``trade 
        representative''.

SEC. 352. TRANSPORTATION.

    No regulation issued by the Secretary of Transportation implementing 
a recommendation of the Land Transportation Standards Subcommittee 
established under article 913(5)(a)(i) of the Agreement may take effect 
before the date 90 days after the date of issuance.

                     PART 2--AGRICULTURAL STANDARDS

    SEC. 361. AGRICULTURAL TECHNICAL AND CONFORMING AMENDMENTS.
    (a) Federal Seed Act.--Section 302(e)(1) of the Federal Seed Act (7 
U.S.C. 1582(e)(1)) is amended by inserting ``or Mexico'' after 
``Canada''.
    (b) Importation of Animals.--The first sentence of section 6 of the 
Act of August 30, 1890 (26 Stat. 416, chapter 839; 21 U.S.C. 104), is 
amended by striking ``: Provided'' and all that follows through the 
period at the end of the sentence and inserting ``, except that the 
Secretary of Agriculture, in accordance with such regulations as the 
Secretary may issue, may (1) permit the importation of cattle, sheep, or 
other ruminants, and swine, from Canada or Mexico, and (2) permit the 
importation from the British Virgin Islands into the Virgin Islands of 
the United States, for slaughter only, of cattle that have been infested 
with or exposed to ticks on being freed from the ticks.''.
    (c) Inspection of Animals.--Section 10 of the Act of August 30, 1890 
(26 Stat. 417, chapter 839; 21 U.S.C. 105), is amended--
        (1) by inserting above ``Sec. 10.'' the following new section 
    heading:

``SEC. 10. INSPECTION OF ANIMALS.'';

        (2) by striking ``Sec. 10. That the Secretary of Agriculture 
    shall'' and inserting ``(a) In General.--Except as provided in 
    subsection (b), the Secretary of Agriculture shall''; and
        (3) by adding at the end the following new subsection:
    ``(b) Exception.--The Secretary of Agriculture, in accordance with 
such regulations as the Secretary may issue, may waive any provision of 
subsection (a) in the case of shipments between the United States and 
Canada or Mexico.''.
    (d) Disease-Free Countries or Regions.--
        (1) Tariff act of 1930.--Section 306 of the Tariff Act of 1930 
    (19 U.S.C. 1306) is amended--
            (A) in subsection (a), by striking ``Rinderpest and Foot-
        and-Mouth Disease.--If the Secretary of Agriculture'' and 
        inserting ``In General.--Except as provided in subsection (b), 
        if the Secretary of Agriculture''; and
            (B) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Exception.--The Secretary of Agriculture may permit, subject 
to such terms and conditions as the Secretary determines appropriate, 
the importation of cattle, sheep, other ruminants, or swine (including 
embryos of the animals), or the fresh, chilled, or frozen meat of the 
animals, from a region if the Secretary determines that the region from 
which the animal or meat originated is, and is likely to remain, free 
from rinderpest and foot-and-mouth disease.''.
        (2) Honeybee act.--The first section of the Act of August 31, 
    1922 (commonly known as the ``Honeybee Act'') (42 Stat. 833, chapter 
    301; 7 U.S.C. 281), is amended--
            (A) in subsection (a)--
                (i) by striking ``, or'' at the end of paragraph (1) and 
            inserting a semicolon;
                (ii) by striking the period at the end of paragraph (2) 
            and inserting ``; or''; and
                (iii) by adding at the end the following new paragraph:
        ``(3) from Canada or Mexico, subject to such terms and 
    conditions as the Secretary of Agriculture determines appropriate, 
    if the Secretary determines that the region of Canada or Mexico from 
    which the honeybees originated is, and is likely to remain, free of 
    diseases or parasites harmful to honeybees, and undesirable species 
    or subspecies of honeybees.''; and
            (B) in subsection (b)--
                (i) by inserting ``(1)'' after ``imported into the 
            United States only from''; and
                (ii) by inserting before the period the following: ``, 
            or (2) Canada or Mexico, if the Secretary of Agriculture 
            determines that the region of Canada or Mexico from which 
            the imports originate is, and is likely to remain, free of 
            undesirable species or subspecies of honeybees''.
    (e) Poultry Products Inspection Act.--Section 17(d) of the Poultry 
Products Inspection Act (21 U.S.C. 466(d)) is amended--
        (1) in paragraph (1), by inserting after ``Notwithstanding any 
    other provision of law,'' the following: ``except as provided in 
    paragraph (2),'';
        (2) by redesignating paragraphs (2) and (3) as paragraphs (3) 
    and (4), respectively; and
        (3) by inserting after paragraph (1) the following new 
    paragraph:
    ``(2)(A) Notwithstanding any other provision of law, all poultry, or 
parts or products of poultry, capable of use as human food offered for 
importation into the United States from Canada and Mexico shall--
        ``(i) comply with paragraph (1); or
        ``(ii)(I) be subject to inspection, sanitary, quality, species 
    verification, and residue standards that are equivalent to United 
    States standards; and
        ``(II) have been processed in facilities and under conditions 
    that meet standards that are equivalent to United States standards.
    ``(B) The Secretary may treat as equivalent to a United States 
standard a standard of Canada or Mexico described in subparagraph 
(A)(ii) if the exporting country provides the Secretary with scientific 
evidence or other information, in accordance with risk assessment 
methodologies agreed to by the Secretary and the exporting country, to 
demonstrate that the standard of the exporting country achieves the 
level of protection that the Secretary considers appropriate.
    ``(C) The Secretary may--
        ``(i) determine, on a scientific basis, that the standard of the 
    exporting country does not achieve the level of protection that the 
    Secretary considers appropriate; and
        ``(ii) provide the basis for the determination in writing to the 
    exporting country on request.''.
    (f) Federal Meat Inspection Act.--Section 20(e) of the Federal Meat 
Inspection Act (21 U.S.C. 620(e)) is amended--
        (1) by striking ``not be limited to--'' and inserting ``not be 
    limited to the following:'';
        (2) by striking paragraph (1);
        (3) by redesignating paragraphs (2) through (6) as paragraphs 
    (3) through (7), respectively;
        (4) by inserting after ``not be limited to the following:'' (as 
    amended by paragraph (1)) the following new paragraphs:
        ``(1)(A) Subject to subparagraphs (B) and (C), a certification 
    by the Secretary that foreign plants in Canada and Mexico that 
    export carcasses or meat or meat products referred to in subsection 
    (a) have complied with paragraph (2) or with requirements that are 
    equivalent to United States requirements with regard to all 
    inspection and building construction standards, and all other 
    provisions of this Act and regulations issued under this Act.
        ``(B) Subject to subparagraph (C), the Secretary may treat as 
    equivalent to a United States requirement a requirement described in 
    subparagraph (A) if the exporting country provides the Secretary 
    with scientific evidence or other information, in accordance with 
    risk assessment methodologies agreed to by the Secretary and the 
    exporting country, to demonstrate that the requirement or standard 
    of the exporting country achieves the level of protection that the 
    Secretary considers appropriate.
        ``(C) The Secretary may--
            ``(i) determine, on a scientific basis, that a requirement 
        of an exporting country does not achieve the level of protection 
        that the Secretary considers appropriate; and
            ``(ii) provide the basis for the determination to the 
        exporting country in writing on request.
        ``(2) A certification by the Secretary that, except as provided 
    in paragraph (1), foreign plants that export carcasses or meat or 
    meat products referred to in subsection (a) have complied with 
    requirements that are at least equal to all inspection and building 
    construction standards and all other provisions of this Act and 
    regulations issued under this Act.'';
        (5) in paragraphs (3) through (7) (as redesignated by paragraph 
    (3)), by striking ``the'' the first place it appears in each 
    paragraph and inserting ``The'';
        (6) in paragraphs (3) through (5) (as so redesignated), by 
    striking the semicolon at the end of each paragraph and inserting a 
    period; and
        (7) in paragraph (6) (as so redesignated), by striking ``; and'' 
    at the end and inserting a period.
    (g) Peanut Butter and Peanut Paste.--
        (1) In general.--Except as provided in paragraph (2), all peanut 
    butter and peanut paste in the United States domestic market shall 
    be processed from peanuts that meet the quality standards 
    established for peanuts under Marketing Agreement No. 146.
        (2) Imports.--Peanut butter and peanut paste imported into the 
    United States shall comply with paragraph (1) or with sanitary 
    measures that achieve at least the same level of sanitary 
    protection.
    (h) Animal Health Biocontainment Facility.--
        (1) Grant for construction.--The Secretary of Agriculture shall 
    make a grant to a land grant college or university described in 
    paragraph (2) for the construction of a facility at the college or 
    university for the conduct of research in animal health, disease-
    transmitting insects, and toxic chemicals that requires the use of 
    biocontainment facilities and equipment. The facility to be 
    constructed with the grant shall be known as the ``Southwest 
    Regional Animal Health Biocontainment Facility''.
        (2) Grant recipient described.--To be eligible for the grant 
    under paragraph (1), a land grant college or university must be--
            (A) located in a State adjacent to the international border 
        with Mexico; and
            (B) determined by the Secretary of Agriculture to have an 
        established program in animal health research and education and 
        to have a collaborative relationship with one or more colleges 
        of veterinary medicine or universities located in Mexico.
        (3) Activities of the facility.--The facility constructed using 
    the grant made under paragraph (1) shall be used for conducting the 
    following activities:
            (A) The biocontainment facility shall offer the ability to 
        organize multidisciplinary international teams working on basic 
        and applied research on diagnostic method development and 
        disease control strategies, including development of vaccines.
            (B) The biocontainment facility shall support research that 
        will improve the scientific basis for regulatory activities, 
        decreasing the need for new regulatory programs and enhancing 
        international trade.
            (C) The biocontainment facility shall allow academic 
        institutions, governmental agencies, and the private sector to 
        conduct research in basic and applied research biology, 
        epidemiology, pathogenesis, host response, and diagnostic 
        methods, on disease agents that threaten the livestock 
        industries of the United States and Mexico.
            (D) The biocontainment facility may be used to support 
        research involving food safety, toxicology, environmental 
        pollutants, radioisotopes, recombinant microorganisms, and 
        selected naturally resistant or transgenic animals.
        (4) Authorization of appropriations.--There are authorized to be 
    appropriated for each fiscal year such sums as are necessary to 
    carry out this subsection.
    (i) Reports on Inspection of Imported Meat, Poultry, Other Foods, 
Animals, and Plants.--
        (1) Definitions.--As used in this subsection:
            (A) Imports.--The term ``imports'' means any meat, poultry, 
        other food, animal, or plant that is imported into the United 
        States in commercially significant quantities.
            (B) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
        (2) In general.--In consultation with representatives of other 
    appropriate agencies, the Secretary shall prepare an annual report 
    on the impact of the Agreement on the inspection of imports.
        (3) Contents of reports.--The report required under this 
    subsection shall, to the maximum extent practicable, include a 
    description of--
            (A) the quantity or, with respect to the Customs Service, 
        the number of shipments, of imports from a NAFTA country that 
        are inspected at the borders of the United States with Canada 
        and Mexico during the prior year;
            (B) any change in the level or types of inspections of 
        imports in each NAFTA country during the prior year;
            (C) in any case in which the Secretary has determined that 
        the inspection system of another NAFTA country is equivalent to 
        the inspection system of the United States, the reasons 
        supporting the determination of the Secretary;
            (D) the incidence of violations of inspection requirements 
        by imports from NAFTA countries during the prior year--
                (i) at the borders of the United States with Mexico or 
            Canada; or
                (ii) at the last point of inspection in a NAFTA country 
            prior to shipment to the United States if the agency accepts 
            inspection in that country;
            (E) the incidence of violations of inspection requirements 
        of imports to the United States from Mexico or Canada prior to 
        the implementation of the Agreement;
            (F) any additional cost associated with maintaining an 
        adequate inspection system of imports as a result of the 
        implementation of the Agreement;
            (G) any incidence of transshipment of imports--
                (i) that originate in a country other than a NAFTA 
            country;
                (ii) that are shipped to the United States through a 
            NAFTA country during the prior year; and
                (iii) that are incorrectly represented by the importer 
            to qualify for preferential treatment under the Agreement;
            (H) the quantity and results of any monitoring by the United 
        States of equivalent inspection systems of imports in other 
        NAFTA countries during the prior year;
            (I) the use by other NAFTA countries of sanitary and 
        phytosanitary measures (as defined in the Agreement) to limit 
        exports of United States meat, poultry, other foods, animals, 
        and plants to the countries during the prior year; and
            (J) any other information the Secretary determines to be 
        appropriate.
        (4) Frequency of reports.--The Secretary shall submit--
            (A) the initial report required under this subsection not 
        later than January 31, 1995; and
            (B) an annual report required under this subsection not 
        later than 1 year after the date of the submission of the 
        initial report and the end of each 1-year period thereafter 
        through calendar year 2004.
        (5) Report to congress.--The Secretary shall prepare and submit 
    the report required under this subsection to the Committee on 
    Agriculture of the House of Representatives and the Committee on 
    Agriculture, Nutrition, and Forestry of the Senate.
               Subtitle F--Corporate Average Fuel Economy

SEC. 371. CORPORATE AVERAGE FUEL ECONOMY.

    (a) In General.--Section 503(b)(2) of the Motor Vehicle Information 
and Cost Savings Act (15 U.S.C. 2003(b)(2)) is amended by adding at the 
end the following new subparagraph:
        ``(G)(i) In accordance with the schedule set out in clause (ii), 
    an automobile shall be considered domestically manufactured in a 
    model year if at least 75 percent of the cost to the manufacturer of 
    the automobile is attributable to value added in the United States, 
    Canada, or Mexico, unless the assembly of the automobile is 
    completed in Canada or Mexico and the automobile is not imported 
    into the United States prior to the expiration of 30 days following 
    the end of that model year.
        ``(ii) Clause (i) shall apply to all automobiles manufactured by 
    a manufacturer and sold in the United States, wherever assembled, in 
    accordance with the following schedule:
            ``(I) With respect to a manufacturer that initiated the 
        assembly of automobiles in Mexico before model year 1992, the 
        manufacturer may elect, at any time between January 1, 1997, and 
        January 1, 2004, to have clause (i) apply to all automobiles it 
        manufactures, beginning with the model year commencing after the 
        date of such election.
            ``(II) With respect to a manufacturer initiating the 
        assembly of automobiles in Mexico after model year 1991, clause 
        (i) shall apply to all automobiles it manufactures, beginning 
        with the model year commencing after January 1, 1994, or the 
        model year commencing after the date that the manufacturer 
        initiates the assembly of automobiles in Mexico, whichever is 
        later.
            ``(III) With respect to a manufacturer not described by 
        subclause (I) or (II) assembling automobiles in the United 
        States or Canada but not in Mexico, the manufacturer may elect, 
        at any time between January 1, 1997, and January 1, 2004, to 
        have clause (i) apply to all automobiles it manufactures, 
        beginning with the model year commencing after the date of such 
        election, except that if such manufacturer initiates the 
        assembly of automobiles in Mexico before making such election, 
        this subclause shall not apply and the manufacturer shall be 
        subject to clause (II).
            ``(IV) With respect to a manufacturer not assembling 
        automobiles in the United States, Canada, or Mexico, clause (i) 
        shall apply to all automobiles it manufactures, beginning with 
        the model year commencing after January 1, 1994.
            ``(V) With respect to a manufacturer authorized to make an 
        election under subclause (I) or (III) which has not made that 
        election within the specified period, clause (i) shall apply to 
        all automobiles it manufactures, beginning with the model year 
        commencing after January 1, 2004.
        ``(iii) The Secretary shall prescribe reasonable procedures for 
    elections under this subparagraph, and the EPA Administrator may 
    prescribe rules for purposes of carrying out this subparagraph.''.
    (b) Conforming Amendments.--The first sentence of section 
503(b)(2)(E) of the Motor Vehicle Information and Cost Savings Act (15 
U.S.C. 2003(b)(2)(E)) is amended--
        (1) by striking ``An'' and inserting ``Except as provided in 
    subparagraph (G), an'', and
        (2) in the last sentence, by striking ``this subparagraph'' and 
    inserting ``this subparagraph and subparagraph (G)''.
                   Subtitle G--Government Procurement

SEC. 381. GOVERNMENT PROCUREMENT.

    (a) In General.--Section 301 of the Trade Agreements Act of 1979 (19 
U.S.C. 2511) is amended--
        (1) in subsection (a) by striking ``The President'' and 
    inserting ``Subject to subsection (f) of this section, the 
    President'';
        (2) by inserting ``or the North American Free Trade Agreement'' 
    after ``the Agreement'' in paragraph (1) of subsection (b); and
        (3) by adding at the end the following new subsections:
    ``(e) Procurement Procedures by Certain Federal Agencies.--
Notwithstanding any other provision of law, the President may direct any 
agency of the United States listed in Annex 1001.1a-2 of the North 
American Free Trade Agreement to procure eligible products in compliance 
with the procedural provisions of chapter 10 of such Agreement.
    ``(f) Small Business and Minority Preferences.--The authority of the 
President under subsection (a) of this section to waive any law, 
regulation, procedure, or practice regarding Government procurement does 
not authorize the waiver of any small business or minority 
preference.''.
    (b) Reciprocal Competitive Procurement Practices.--Section 302(a) of 
such Act (19 U.S.C. 2512(a)) is amended by striking ``would otherwise be 
eligible products'' in paragraph (1) and inserting ``are products 
covered under the Agreement for procurement by the United States''.
    (c) Definition of Eligible Product.--Section 308(4)(A) of such Act 
(19 U.S.C. 2518(4)(A)) is amended to read as follows:
            ``(A) In general.--The term `eligible product' means, with 
        respect to any foreign country or instrumentality that is--
                ``(i) a party to the Agreement, a product or service of 
            that country or instrumentality which is covered under the 
            Agreement for procurement by the United States; or
                ``(ii) a party to the North American Free Trade 
            Agreement, a product or service of that country or 
            instrumentality which is covered under the North American 
            Free Trade Agreement for procurement by the United 
            States.''.
    (d) Conforming Amendments.--Section 401 of the Rural Electrification 
Act of 1938 (7 U.S.C. 903 note) is amended by inserting ``, Mexico, or 
Canada'' after ``the United States'' each place it appears.
    (e) Effective Date.--The provisions of this subtitle take effect on 
the date the Agreement enters into force with respect to the United 
States.
  TITLE IV--DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING DUTY 
                                  CASES
 Subtitle A--Organizational, Administrative, and Procedural Provisions 
       Regarding the Implementation of Chapter 19 of the Agreement

SEC. 401. REFERENCES IN SUBTITLE.

    Any reference in this subtitle to an Annex, chapter, or article 
shall be considered to be a reference to the respective Annex, chapter, 
or article of the Agreement.

SEC. 402. ORGANIZATIONAL AND ADMINISTRATIVE PROVISIONS.

    (a) Criteria for Selection of Individuals To Serve on Panels and 
Committees.--
        (1) In general.--The selection of individuals under this section 
    for--
            (A) placement on lists prepared by the interagency group 
        under subsection (c)(2)(B) (i) and (ii);
            (B) placement on preliminary candidate lists under 
        subsection (c)(3)(A);
            (C) placement on final candidate lists under subsection 
        (c)(4)(A);
            (D) placement by the Trade Representative on the rosters 
        described in paragraph 1 of Annex 1901.2 and paragraph 1 of 
        Annex 1904.13; and
            (E) appointment by the Trade Representative for service on 
        the panels and committees convened under chapter 19;
    shall be made on the basis of the criteria provided in paragraph 1 
    of Annex 1901.2 and paragraph 1 of Annex 1904.13 and shall be made 
    without regard to political affiliation.
        (2) Additional criteria for roster placements and appointments 
    under paragraph 1 of annex 1901.2.--Rosters described in paragraph 1 
    of Annex 1901.2 shall include, to the fullest extent practicable, 
    judges and former judges who meet the criteria referred to in 
    paragraph (1). The Trade Representative shall, subject to subsection 
    (b), appoint judges to binational panels convened under chapter 19, 
    extraordinary challenge committees convened under chapter 19, and 
    special committees established under article 1905, where such judges 
    offer and are available to serve and such service is authorized by 
    the chief judge of the court on which they sit.
    (b) Selection of Certain Judges To Serve on Panels and Committees.--
        (1) Applicability.--This subsection applies only with respect to 
    the selection of individuals for binational panels convened under 
    chapter 19, extraordinary challenge committees convened under 
    chapter 19, and special committees established under article 1905, 
    who are judges of courts created under article III of the 
    Constitution of the United States.
        (2) Consultation with chief judges.--The Trade Representative 
    shall consult, from time to time, with the chief judges of the 
    Federal judicial circuits regarding the interest in, and 
    availability for, participation in binational panels, extraordinary 
    challenge committees, and special committees, of judges within their 
    respective circuits. If the chief judge of a Federal judicial 
    circuit determines that it is appropriate for one or more judges 
    within that circuit to be included on a roster described in 
    subsection (a)(1)(D), the chief judge shall identify all such judges 
    for the Chief Justice of the United States who may, upon his or her 
    approval, submit the names of such judges to the Trade 
    Representative. The Trade Representative shall include the names of 
    such judges on the roster.
        (3) Submission of lists to congress.--The Trade Representative 
    shall submit to the Committee on the Judiciary and the Committee on 
    Ways and Means of the House of Representatives and to the Committee 
    on Finance and the Committee on the Judiciary of the Senate a list 
    of all judges included on a roster under paragraph (2). Such list 
    shall be submitted at the same time as the final candidate lists are 
    submitted under subsection (c)(4)(A) and the final forms of 
    amendments are submitted under subsection (c)(4)(C)(iv).
        (4) Appointment of judges to panels or committees.--At such time 
    as the Trade Representative proposes to appoint a judge described in 
    paragraph (1) to a binational panel, an extraordinary challenge 
    committee, or a special committee, the Trade Representative shall 
    consult with that judge in order to ascertain whether the judge is 
    available for such appointment.
    (c) Selection of Other Candidates.--
        (1) Applicability.--This subsection applies only with respect to 
    the selection of individuals for binational panels convened under 
    chapter 19, extraordinary challenge committees convened under 
    chapter 19, and special committees established under article 1905, 
    other than those individuals to whom subsection (b) applies.
        (2) Interagency group.--
            (A) Establishment.--There is established within the 
        interagency organization established under section 242 of the 
        Trade Expansion Act of 1962 (19 U.S.C. 1872) an interagency 
        group which shall--
                (i) be chaired by the Trade Representative; and
                (ii) consist of such officers (or the designees thereof) 
            of the United States Government as the Trade Representative 
            considers appropriate.
            (B) Functions.--The interagency group established under 
        subparagraph (A) shall, in a manner consistent with chapter 19--
                (i) prepare by January 3 of each calendar year--

                    (I) a list of individuals who are qualified to serve 
                as members of binational panels convened under chapter 
                19; and
                    (II) a list of individuals who are qualified to 
                serve on extraordinary challenge committees convened 
                under chapter 19 and special committees established 
                under article 1905;

                (ii) if the Trade Representative makes a request under 
            paragraph (4)(C)(i) with respect to a final candidate list 
            during any calendar year, prepare by July 1 of such calendar 
            year a list of those individuals who are qualified to be 
            added to that final candidate list;
                (iii) exercise oversight of the administration of the 
            United States Section that is authorized to be established 
            under section 105; and
                (iv) make recommendations to the Trade Representative 
            regarding the convening of extraordinary challenge 
            committees and special committees under chapter 19.
        (3) Preliminary candidate lists.--
            (A) In general.--The Trade Representative shall select 
        individuals from the respective lists prepared by the 
        interagency group under paragraph (2)(B)(i) for placement on--
                (i) a preliminary candidate list of individuals eligible 
            to serve as members of binational panels under Annex 1901.2; 
            and
                (ii) a preliminary candidate list of individuals 
            eligible for selection as members of extraordinary challenge 
            committees under Annex 1904.13 and special committees under 
            article 1905.
            (B) Submission of lists to congressional committees.--
                (i) In general.--No later than January 3 of each 
            calendar year, the Trade Representative shall submit to the 
            Committee on Finance of the Senate and the Committee on Ways 
            and Means of the House of Representatives (hereafter in this 
            section referred to as the ``appropriate Congressional 
            Committees'') the preliminary candidate lists of those 
            individuals selected by the Trade Representative under 
            subparagraph (A) to be candidates eligible to serve on 
            panels or committees convened pursuant to chapter 19 during 
            the 1-year period beginning on April 1 of such calendar 
            year.
                (ii) Additional information.--At the time the candidate 
            lists are submitted under clause (i), the Trade 
            Representative shall submit for each individual on the list 
            a statement of professional qualifications.
            (C) Consultation.--Upon submission of the preliminary 
        candidate lists under subparagraph (B) to the appropriate 
        Congressional Committees, the Trade Representative shall consult 
        with such Committees with regard to the individuals included on 
        the preliminary candidate lists.
            (D) Revision of lists.--The Trade Representative may add and 
        delete individuals from the preliminary candidate lists 
        submitted under subparagraph (B) after consultation with the 
        appropriate Congressional Committees regarding the additions and 
        deletions. The Trade Representative shall provide to the 
        appropriate Congressional Committees written notice of any 
        addition or deletion of an individual from the preliminary 
        candidate lists, along with the information described in 
        subparagraph (B)(ii) with respect to any proposed addition.
        (4) Final candidate lists.--
            (A) Submission of lists to congressional committees.--No 
        later than March 31 of each calendar year, the Trade 
        Representative shall submit to the appropriate Congressional 
        Committees the final candidate lists of those individuals 
        selected by the Trade Representative to be candidates eligible 
        to serve on panels and committees convened under chapter 19 
        during the 1-year period beginning on April 1 of such calendar 
        year. An individual may be included on a final candidate list 
        only if such individual was included in the preliminary 
        candidate list or if written notice of the addition of such 
        individual to the preliminary candidate list was submitted to 
        the appropriate Congressional Committees at least 15 days before 
        the date on which that final candidate list is submitted to such 
        Committees under this subparagraph.
            (B) Finality of lists.--Except as provided in subparagraph 
        (C), no additions may be made to the final candidate lists after 
        the final candidate lists are submitted to the appropriate 
        Congressional Committees under subparagraph (A).
            (C) Amendment of lists.--
                (i) In general.--If, after the Trade Representative has 
            submitted the final candidate lists to the appropriate 
            Congressional Committees under subparagraph (A) for a 
            calendar year and before July 1 of such calendar year, the 
            Trade Representative determines that additional individuals 
            need to be added to a final candidate list, the Trade 
            Representative shall--

                    (I) request the interagency group established under 
                paragraph (2)(A) to prepare a list of individuals who 
                are qualified to be added to such candidate list;
                    (II) select individuals from the list prepared by 
                the interagency group under paragraph (2)(B)(ii) to be 
                included in a proposed amendment to such final candidate 
                list; and

                    (III) by no later than July 1 of such calendar year, 
                submit to the appropriate Congressional Committees the 
                proposed amendments to such final candidate list 
                developed by the Trade Representative under subclause 
                (II), along with the information described in paragraph 
                (3)(B)(ii).

                (ii) Consultation with congressional committees.--Upon 
            submission of a proposed amendment under clause (i)(III) to 
            the appropriate Congressional Committees, the Trade 
            Representative shall consult with the appropriate 
            Congressional Committees with regard to the individuals 
            included in the proposed amendment.
                (iii) Adjustment of proposed amendment.--The Trade 
            Representative may add and delete individuals from any 
            proposed amendment submitted under clause (i)(III) after 
            consulting with the appropriate Congressional Committees 
            with regard to the additions and deletions. The Trade 
            Representative shall provide to the appropriate 
            Congressional Committees written notice of any addition or 
            deletion of an individual from the proposed amendment.
                (iv) Final amendment.--

                    (I) In general.--If the Trade Representative submits 
                under clause (i)(III) in any calendar year a proposed 
                amendment to a final candidate list, the Trade 
                Representative shall, no later than September 30 of such 
                calendar year, submit to the appropriate Congressional 
                Committees the final form of such amendment. On October 
                1 of such calendar year, such amendment shall take 
                effect and, subject to subclause (II), the individuals 
                included in the final form of such amendment shall be 
                added to the final candidate list.
                    (II) Inclusion of individuals.--An individual may be 
                included in the final form of an amendment submitted 
                under subclause (I) only if such individual was included 
                in the proposed form of such amendment or if written 
                notice of the addition of such individual to the 
                proposed form of such amendment was submitted to the 
                appropriate Congressional Committees at least 15 days 
                before the date on which the final form of such 
                amendment is submitted to such Committees under 
                subclause (I).
                    (III) Eligibility for service.--Individuals added to 
                a final candidate list under subclause (I) shall be 
                eligible to serve on panels or committees convened under 
                chapter 19 during the 6-month period beginning on 
                October 1 of the calendar year in which such addition 
                occurs.
                    (IV) Finality of amendment.--No additions may be 
                made to the final form of an amendment described in 
                subclause (I) after the final form of such amendment is 
                submitted to the appropriate Congressional Committees 
                under subclause (I).

        (5) Treatment of responses.--For purposes of applying section 
    1001 of title 18, United States Code, the written or oral responses 
    of individuals to inquiries of the interagency group established 
    under paragraph (2)(A) or of the Trade Representative regarding 
    their personal and professional qualifications, and financial and 
    other relevant interests, that bear on their suitability for the 
    placements and appointments described in subsection (a)(1), shall be 
    treated as matters within the jurisdiction of an agency of the 
    United States.
    (d) Selection and Appointment.--
        (1) Authority of trade representative.--The Trade Representative 
    is the only officer of the United States Government authorized to 
    act on behalf of the United States Government in making any 
    selection or appointment of an individual to--
            (A) the rosters described in paragraph 1 of Annex 1901.2 and 
        paragraph 1 of Annex 1904.13; or
            (B) the panels or committees convened under chapter 19;
    that is to be made solely or jointly by the United States Government 
    under the terms of the Agreement.
        (2) Restrictions on selection and appointment.--Except as 
    provided in paragraph (3)--
            (A) the Trade Representative may--
                (i) select an individual for placement on the rosters 
            described in paragraph 1 of Annex 1901.2 and paragraph 1 of 
            Annex 1904.13 during the 1-year period beginning on April 1 
            of any calendar year;
                (ii) appoint an individual to serve as one of those 
            members of any panel or committee convened under chapter 19 
            during such 1-year period who, under the terms of the 
            Agreement, are to be appointed solely by the United States 
            Government; or
                (iii) act to make a joint appointment with the 
            Government of a NAFTA country, under the terms of the 
            Agreement, of any individual who is a citizen or national of 
            the United States to serve as any other member of such a 
            panel or committee;
        only if such individual is on the appropriate final candidate 
        list that was submitted to the appropriate Congressional 
        Committees under subsection (c)(4)(A) during such calendar year 
        or on such list as it may be amended under subsection 
        (c)(4)(C)(iv)(I), or on the list submitted under subsection 
        (b)(3) to the Congressional Committees referred to in such 
        subsection; and
            (B) no individual may--
                (i) be selected by the United States Government for 
            placement on the rosters described in paragraph 1 of Annex 
            1901.2 and paragraph 1 of Annex 1904.13; or
                (ii) be appointed solely or jointly by the United States 
            Government to serve as a member of a panel or committee 
            convened under chapter 19;
        during the 1-year period beginning on April 1 of any calendar 
        year for which the Trade Representative has not met the 
        requirements of subsection (a), and of subsection (b) or (c) (as 
        the case may be).
        (3) Exceptions.--Notwithstanding subsection (c)(3) (other than 
    subparagraph (B)), (c)(4), or paragraph (2)(A) of this subsection, 
    individuals included on the preliminary candidate lists submitted to 
    the appropriate Congressional Committees under subsection (c)(3)(B) 
    may--
            (A) be selected by the Trade Representative for placement on 
        the rosters described in paragraph 1 of Annex 1901.2 and 
        paragraph 1 of Annex 1904.13 during the 3-month period beginning 
        on the date on which the Agreement enters into force with 
        respect to the United States; and
            (B) be appointed solely or jointly by the Trade 
        Representative under the terms of the Agreement to serve as 
        members of panels or committees that are convened under chapter 
        19 during such 3-month period.
    (e) Transition.--If the Agreement enters into force between the 
United States and a NAFTA country after January 3, 1994, the provisions 
of subsection (c) shall be applied with respect to the calendar year in 
which such entering into force occurs--
        (1) by substituting ``the date that is 30 days after the date on 
    which the Agreement enters into force with respect to the United 
    States'' for ``January 3 of each calendar year'' in subsections 
    (c)(2)(B)(i) and (c)(3)(B)(i); and
        (2) by substituting ``the date that is 3 months after the date 
    on which the Agreement enters into force with respect to the United 
    States'' for ``March 31 of each calendar year'' in subsection 
    (c)(4)(A).
    (f) Immunity.--With the exception of acts described in section 
777(f)(3) of the Tariff Act of 1930 (19 U.S.C. 1677f(f)(3)), individuals 
serving on panels or committees convened pursuant to chapter 19, and 
individuals designated to assist the individuals serving on such panels 
or committees, shall be immune from suit and legal process relating to 
acts performed by such individuals in their official capacity and within 
the scope of their functions as such panelists or committee members or 
assistants to such panelists or committee members.
    (g) Regulations.--The administering authority under title VII of the 
Tariff Act of 1930, the International Trade Commission, and the Trade 
Representative may promulgate such regulations as are necessary or 
appropriate to carry out actions in order to implement their respective 
responsibilities under chapter 19. Initial regulations to carry out such 
functions shall be issued before the date on which the Agreement enters 
into force with respect to the United States.
    (h) Report to Congress.--At such time as the final candidate lists 
are submitted under subsection (c)(4)(A) and the final forms of 
amendments are submitted under subsection (c)(4)(C)(iv), the Trade 
Representative shall submit to the Committee on the Judiciary and the 
Committee on Ways and Means of the House of Representatives, and to the 
Committee on Finance and the Committee on the Judiciary of the Senate, a 
report regarding the efforts made to secure the participation of judges 
and former judges on binational panels, extraordinary challenge 
committees, and special committees established under chapter 19.
    SEC. 403. TESTIMONY AND PRODUCTION OF PAPERS IN EXTRAORDINARY 
      CHALLENGES.
    (a) Authority of Extraordinary Challenge Committee To Obtain 
Information.--If an extraordinary challenge committee (hereafter in this 
section referred to as the ``committee'') is convened under paragraph 13 
of article 1904, and the allegations before the committee include a 
matter referred to in paragraph 13(a)(i) of article 1904, for the 
purposes of carrying out its functions and duties under Annex 1904.13, 
the committee--
        (1) shall have access to, and the right to copy, any document, 
    paper, or record pertinent to the subject matter under 
    consideration, in the possession of any individual, partnership, 
    corporation, association, organization, or other entity;
        (2) may summon witnesses, take testimony, and administer oaths;
        (3) may require any individual, partnership, corporation, 
    association, organization, or other entity to produce documents, 
    books, or records relating to the matter in question; and
        (4) may require any individual, partnership, corporation, 
    association, organization, or other entity to furnish in writing, in 
    such detail and in such form as the committee may prescribe, 
    information in its possession pertaining to the matter.
Any member of the committee may sign subpoenas, and members of the 
committee, when authorized by the committee, may administer oaths and 
affirmations, examine witnesses, take testimony, and receive evidence.
    (b) Witnesses and Evidence.--The attendance of witnesses who are 
authorized to be summoned, and the production of documentary evidence 
authorized to be ordered, under subsection (a) may be required from any 
place in the United States at any designated place of hearing. In the 
case of disobedience to a subpoena authorized under subsection (a), the 
committee may request the Attorney General of the United States to 
invoke the aid of any district or territorial court of the United States 
in requiring the attendance and testimony of witnesses and the 
production of documentary evidence. Such court, within the jurisdiction 
of which such inquiry is carried on, may, in case of contumacy or 
refusal to obey a subpoena issued to any individual, partnership, 
corporation, association, organization, or other entity, issue an order 
requiring such individual or entity to appear before the committee, or 
to produce documentary evidence if so ordered or to give evidence 
concerning the matter in question. Any failure to obey such order of the 
court may be punished by such court as a contempt thereof.
    (c) Mandamus.--Any court referred to in subsection (b) shall have 
jurisdiction to issue writs of mandamus commanding compliance with the 
provisions of this section or any order of the committee made in 
pursuance thereof.
    (d) Depositions.--The committee may order testimony to be taken by 
deposition at any stage of the committee review. Such deposition may be 
taken before any person designated by the committee and having power to 
administer oaths. Such testimony shall be reduced to writing by the 
person taking the deposition, or under the direction of such person, and 
shall then be subscribed by the deponent. Any individual, partnership, 
corporation, association, organization, or other entity may be compelled 
to appear and be deposed and to produce documentary evidence in the same 
manner as witnesses may be compelled to appear and testify and produce 
documentary evidence before the committee, as provided in this section.
    SEC. 404. REQUESTS FOR REVIEW OF DETERMINATIONS BY COMPETENT 
      INVESTIGATING AUTHORITIES OF NAFTA COUNTRIES.
    (a) Definitions.--As used in this section:
        (1) Competent investigating authority.--The term ``competent 
    investigating authority'' means the competent investigating 
    authority, as defined in article 1911, of a NAFTA country.
        (2) United states secretary.--The term ``United States 
    Secretary'' means that officer of the United States referred to in 
    article 1908.
    (b) Requests for Review by the United States.--In the case of a 
final determination of a competent investigating authority, requests by 
the United States for binational panel review of such determination 
under article 1904 shall be made by the United States Secretary.
    (c) Requests for Review by a Person.--In the case of a final 
determination of a competent investigating authority, a person, within 
the meaning of paragraph 5 of article 1904, may request a binational 
panel review of such determination by filing such a request with the 
United States Secretary within the time limit provided for in paragraph 
4 of article 1904. The receipt of such request by the United States 
Secretary shall be deemed to be a request for binational panel review 
within the meaning of article 1904. The request for such panel review 
shall be without prejudice to any challenge before a binational panel of 
the basis for a particular request for review.
    (d) Service of Request for Review.--Whenever binational panel review 
of a final determination made by a competent investigating authority is 
requested under this section, the United States Secretary shall serve a 
copy of the request on all persons who would otherwise be entitled under 
the law of the importing country to commence proceedings for judicial 
review of the determination.

SEC. 405. RULES OF PROCEDURE FOR PANELS AND COMMITTEES.

    (a) Rules of Procedure for Binational Panels.--The administering 
authority shall prescribe rules, negotiated in accordance with paragraph 
14 of article 1904, governing, with respect to binational panel 
reviews--
        (1) requests for such reviews, complaints, other pleadings, and 
    other papers;
        (2) the amendment, filing, and service of such pleadings and 
    papers;
        (3) the joinder, suspension, and termination of such reviews; 
    and
        (4) other appropriate procedural matters.
    (b) Rules of Procedure for Extraordinary Challenge Committees.--The 
administering authority shall prescribe rules, negotiated in accordance 
with paragraph 2 of Annex 1904.13, governing the procedures for reviews 
by extraordinary challenge committees.
    (c) Rules of Procedure for Safeguarding the Panel Review System.--
The administering authority shall prescribe rules, negotiated in 
accordance with Annex 1905.6, governing the procedures for special 
committees described in such Annex.
    (d) Publication of Rules.--The rules prescribed under subsections 
(a), (b), and (c) shall be published in the Federal Register.
    (e) Administering Authority.--As used in this section, the term 
``administering authority'' has the meaning given such term in section 
771(1) of the Tariff Act of 1930 (19 U.S.C. 1677(1)).

SEC. 406. SUBSIDY NEGOTIATIONS.

    In the case of any trade agreement which may be entered into by the 
President with a NAFTA country, the negotiating objectives of the United 
States with respect to subsidies shall include--
        (1) achievement of increased discipline on domestic subsidies 
    provided by a foreign government, including--
            (A) the provision of capital, loans, or loan guarantees on 
        terms inconsistent with commercial considerations;
            (B) the provision of goods or services at preferential 
        rates;
            (C) the granting of funds or forgiveness of debt to cover 
        operating losses sustained by a specific industry; and
            (D) the assumption of any costs or expenses of manufacture, 
        production, or distribution;
        (2) achievement of increased discipline on export subsidies 
    provided by a foreign government, particularly with respect to 
    agricultural products; and
        (3) maintenance of effective remedies against subsidized 
    imports, including, where appropriate, countervailing duties.
    SEC. 407. IDENTIFICATION OF INDUSTRIES FACING SUBSIDIZED IMPORTS.
    (a) Petitions.--Any entity, including a trade association, firm, 
certified or recognized union, or group of workers, that is 
representative of a United States industry and has reason to believe--
        (1) that--
            (A) as a result of implementation of provisions of the 
        Agreement, the industry is likely to face increased competition 
        from subsidized imports, from a NAFTA country, with which it 
        directly competes; or
            (B) the industry is likely to face increased competition 
        from subsidized imports with which it directly competes from any 
        other country designated by the President, following 
        consultations with the Congress, as benefiting from a reduction 
        of tariffs or other trade barriers under a trade agreement that 
        enters into force with respect to the United States after 
        January 1, 1994; and
        (2) that the industry is likely to experience a deterioration of 
    its competitive position before more effective rules and disciplines 
    relating to the use of government subsidies have been developed with 
    respect to the country concerned;
may file with the Trade Representative a petition that such industry be 
identified under this section.
    (b) Identification of Industry.--Within 90 days after receipt of a 
petition under subsection (a), the Trade Representative, in consultation 
with the Secretary of Commerce, shall decide whether to identify the 
industry on the basis that there is a reasonable likelihood that the 
industry may face both the subsidization described in subsection (a)(1) 
and the deterioration described in subsection (a)(2).
    (c) Action After Identification.--At the request of an entity that 
is representative of an industry identified under subsection (b), the 
Trade Representative shall--
        (1) compile and make available to the industry information under 
    section 308 of the Trade Act of 1974;
        (2) recommend to the President that an investigation by the 
    International Trade Commission be requested under section 332 of the 
    Tariff Act of 1930; or
        (3) take actions described in both paragraphs (1) and (2).
The industry may request the Trade Representative to take appropriate 
action to update (as often as annually) any information obtained under 
paragraph (1) or (2), or both, as the case may be, until an agreement on 
more effective rules and disciplines relating to government subsidies is 
reached between the United States and the NAFTA countries.
    (d) Initiation of Action Under Other Law.--
        (1) In general.--The Trade Representative and the Secretary of 
    Commerce shall review information obtained under subsection (c) and 
    consult with the industry identified under subsection (b) with a 
    view to deciding whether any action is appropriate--
            (A) under section 301 of the Trade Act of 1974, including 
        the initiation of an investigation under section 302(c) of that 
        Act (in the case of the Trade Representative); or
            (B) under subtitle A of title VII of the Tariff Act of 1930, 
        including the initiation of an investigation under section 
        702(a) of that Act (in the case of the Secretary of Commerce).
        (2) Criteria for initiation.--In determining whether to initiate 
    any investigation under section 301 of the Trade Act of 1974 or any 
    other trade law, other than title VII of the Tariff Act of 1930, the 
    Trade Representative, after consultation with the Secretary of 
    Commerce--
            (A) shall seek the advice of the advisory committees 
        established under section 135 of the Trade Act of 1974;
            (B) shall consult with the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives;
            (C) shall coordinate with the interagency organization 
        established under section 242 of the Trade Expansion Act of 
        1962; and
            (D) may ask the President to request advice from the 
        International Trade Commission.
        (3) Title iii actions.--In the event an investigation is 
    initiated under section 302(c) of the Trade Act of 1974 as a result 
    of a review under this subsection and the Trade Representative, 
    following such investigation (including any applicable dispute 
    settlement proceedings under the Agreement or any other trade 
    agreement), determines to take action under section 301(a) of such 
    Act, the Trade Representative shall give preference to actions that 
    most directly affect the products that benefit from governmental 
    subsidies and were the subject of the investigation, unless there 
    are no significant imports of such products or the Trade 
    Representative otherwise determines that application of the action 
    to other products would be more effective.
    (e) Effect of Decisions.--Any decision, whether positive or 
negative, or any action by the Trade Representative or the Secretary of 
Commerce under this section shall not in any way--
        (1) prejudice the right of any industry to file a petition under 
    any trade law;
        (2) prejudice, affect, or substitute for, any proceeding, 
    investigation, determination, or action by the Secretary of 
    Commerce, the International Trade Commission, or the Trade 
    Representative pursuant to such a petition, or
        (3) prejudice, affect, substitute for, or obviate any 
    proceeding, investigation, or determination under section 301 of the 
    Trade Act of 1974, title VII of the Tariff Act of 1930, or any other 
    trade law.
    (f) Standing.--Nothing in this section may be construed to alter in 
any manner the requirements in effect before the date of the enactment 
of this Act for standing under any law of the United States or to add 
any additional requirements for standing under any law of the United 
States.
    SEC. 408. TREATMENT OF AMENDMENTS TO ANTIDUMPING AND COUNTERVAILING 
      DUTY LAW.
    Any amendment enacted after the Agreement enters into force with 
respect to the United States that is made to--
        (1) section 303 or title VII of the Tariff Act of 1930, or any 
    successor statute, or
        (2) any other statute which--
            (A) provides for judicial review of final determinations 
        under such section, title, or successor statute, or
            (B) indicates the standard of review to be applied,
shall apply to goods from a NAFTA country only to the extent specified 
in the amendment.
            Subtitle B--Conforming Amendments and Provisions
    SEC. 411. JUDICIAL REVIEW IN ANTIDUMPING DUTY AND COUNTERVAILING 
      DUTY CASES.
    Section 516A of the Tariff Act of 1930 (19 U.S.C. 1516a) is amended 
as follows:
        (1) Subsection (a)(5) (relating to time limits for commencing 
    review) is amended to read as follows:
        ``(5) Time limits in cases involving merchandise from free trade 
    area countries.--Notwithstanding any other provision of this 
    subsection, in the case of a determination to which the provisions 
    of subsection (g) apply, an action under this subsection may not be 
    commenced, and the time limits for commencing an action under this 
    subsection shall not begin to run, until the day specified in 
    whichever of the following subparagraphs applies:
            ``(A) For a determination described in paragraph (1)(B) or 
        clause (i), (ii) or (iii) of paragraph (2)(B), the 31st day 
        after the date on which notice of the determination is published 
        in the Federal Register.
            ``(B) For a determination described in clause (vi) of 
        paragraph (2)(B), the 31st day after the date on which the 
        government of the relevant FTA country receives notice of the 
        determination.
            ``(C) For a determination with respect to which binational 
        panel review has commenced in accordance with subsection (g)(8), 
        the day after the date as of which--
                ``(i) the binational panel has dismissed binational 
            panel review of the determination for lack of jurisdiction, 
            and
                ``(ii) any interested party seeking review of the 
            determination under paragraph (1), (2), or (3) of this 
            subsection has provided timely notice under subsection 
            (g)(3)(B).
        If such an interested party files a summons and complaint under 
        this subsection after dismissal by the binational panel, and if 
        a request for an extraordinary challenge committee is made with 
        respect to the decision by the binational panel to dismiss--
                ``(I) judicial review under this subsection shall be 
            stayed during consideration by the committee of the request, 
            and
                ``(II) the United States Court of International Trade 
            shall dismiss the action if the committee vacates or remands 
            the binational panel decision to dismiss.
            ``(D) For a determination for which review by the United 
        States Court of International Trade is provided for--
                ``(i) under subsection (g)(12)(B), the day after the 
            date of publication in the Federal Register of notice that 
            article 1904 of the NAFTA has been suspended, or
                ``(ii) under subsection (g)(12)(D), the day after the 
            date that notice of settlement is published in the Federal 
            Register.''.
        (2) Subsection (b)(3) (relating to the standards of review) is 
    amended--
            (A) by inserting ``nafta or'' after ``decisions by'' in the 
        heading; and
            (B) by inserting ``of the NAFTA or'' after ``article 1904''.
        (3) Subsection (f) (relating to definitions) is amended--
            (A) by amending paragraphs (6) and (7) to read as follows:
        ``(6) United states secretary.--The term `United States 
    Secretary' means--
            ``(A) the secretary for the United States Section referred 
        to in article 1908 of the NAFTA, and
            ``(B) the secretary of the United States Section provided 
        for in article 1909 of the Agreement.
        ``(7)  Relevant fta secretary.--The term `relevant FTA 
    Secretary' means the Secretary--
            ``(A) referred to in article 1908 of the NAFTA, or
            ``(B) provided for in paragraph 5 of article 1909 of the 
        Agreement,
    of the relevant FTA country.''; and
            (B) by adding at the end the following new paragraphs:
        ``(8) NAFTA.--The term `NAFTA' means the North American Free 
    Trade Agreement.
        ``(9) Relevant fta country.--The term `relevant FTA country' 
    means the free trade area country to which an antidumping or 
    countervailing duty proceeding pertains.
        ``(10) Free trade area country.--The term `free trade area 
    country' means the following:
            ``(A) Canada for such time as the NAFTA is in force with 
        respect to, and the United States applies the NAFTA to, Canada.
            ``(B) Mexico for such time as the NAFTA is in force with 
        respect to, and the United States applies the NAFTA to, Mexico.
            ``(C) Canada for such time as--
                ``(i) it is not a free trade area country under 
            subparagraph (A); and
                ``(ii) the Agreement is in force with respect to, and 
            the United States applies the Agreement to, Canada.''.
        (4) Subsection (g) (relating to review of countervailing and 
    antidumping duty determinations) is amended as follows:
            (A) The subsection heading is amended by striking out 
        ``Canadian Merchandise'' and inserting ``Free Trade Area Country 
        Merchandise''.
            (B) Paragraph (1) is amended by striking out ``Canadian 
        merchandise'' and inserting ``free trade area country 
        merchandise''.
            (C) Paragraph (2) is amended by inserting ``of the NAFTA 
        or'' after ``article 1904''.
            (D) Paragraph (3)(A) is amended--
                (i) by striking out ``nor Canada'' and inserting ``nor 
            the relevant FTA country'' in each of clauses (i) and (ii);
                (ii) by inserting ``of the NAFTA or'' before ``of the 
            Agreement'' in each of clauses (i) and (iii);
                (iii) by striking out ``or'' at the end of clause (iii);
                (iv) by amending clause (iv)--

                    (I) by striking out ``under paragraph (2)(A)''; and
                    (II) by striking out the period and inserting a 
                comma; and

                (v) by adding at the end of subparagraph (A) the 
            following:
                ``(v) a determination as to which binational panel 
            review has terminated pursuant to paragraph 12 of article 
            1905 of the NAFTA, or
                ``(vi) a determination as to which extraordinary 
            challenge committee review has terminated pursuant to 
            paragraph 12 of article 1905 of the NAFTA.''.
            (E) The first and second sentences of paragraph (3)(B) are 
        amended to read as follows: ``A determination described in 
        subparagraph (A)(i) or (iv) is reviewable under subsection (a) 
        only if the party seeking to commence review has provided timely 
        notice of its intent to commence such review to--
                ``(i) the United States Secretary and the relevant FTA 
            Secretary;
                ``(ii) all interested parties who were parties to the 
            proceeding in connection with which the matter arises; and
                ``(iii) the administering authority or the Commission, 
            as appropriate.
        Such notice is timely provided if the notice is delivered no 
        later than the date that is 20 days after the date described in 
        subparagraph (A) or (B) of subsection (a)(5) that is applicable 
        to such determination, except that, if the time for requesting 
        binational panel review is suspended under paragraph (8)(A)(ii) 
        of this subsection, any unexpired time for providing notice of 
        intent to commence judicial review shall, during the pendency of 
        any such suspension, also be suspended.''.
            (F) Paragraph (4)(A) is amended--
                (i) in the first sentence--

                    (I) by inserting ``the North American Free Trade 
                Agreement Implementation Act implementing the binational 
                dispute settlement system under chapter 19 of the NAFTA, 
                or'' after ``or amendment made by,'';
                    (II) by inserting a comma before ``violates'';
                    (III) by inserting ``only'' after ``may be 
                brought''; and
                    (IV) by inserting ``, which shall have jurisdiction 
                of such action'' after ``Circuit''; and

                (ii) by striking the last sentence.
            (G) Paragraph (5) is amended--
                (i) by inserting ``of the NAFTA or'' after ``article 
            1904'' in each of subparagraphs (A), (B), and (C)(i);
                (ii) by striking out ``, the Canadian Secretary,'' in 
            subparagraph (C)(ii) and inserting ``, the relevant FTA 
            Secretary,''; and
                (iii) by inserting ``of the NAFTA or'' after ``chapter 
            19'' in subparagraph (C)(iii).
            (H) Paragraph (6) is amended by inserting ``of the NAFTA 
        or'' after ``article 1904''.
            (I) Paragraph (7) is amended--
                (i) by inserting ``of the nafta or the agreement'' 
            before the period in the paragraph heading;
                (ii) by striking out ``In general.--'' in the heading to 
            subparagraph (A) and inserting ``Action upon remand.--''; 
            and
                (iii) by inserting ``the NAFTA or'' before ``the 
            Agreement'' in subparagraph (A).
            (J) Paragraph (8)(A) is amended--
                (i) by inserting ``(i) General Rule.--'' before ``An 
            interested party'';
                (ii) by inserting ``of the NAFTA or'' after ``article 
            1904(4)'';
                (iii) by indenting the text so as to align it with new 
            clause (ii) (as added by clause (iv) of this subparagraph); 
            and
                (iv) by adding at the end the following new clause:
                ``(ii) Suspension of time to request binational panel 
            review under the nafta.--Notwithstanding clause (i), the 
            time for requesting binational panel review shall be 
            suspended during the pendency of any stay of binational 
            panel review that is issued pursuant to paragraph 11(a) of 
            article 1905 of the NAFTA.''.
            (K) Paragraph (8)(B)(ii) is amended by striking out 
        ``Canadian Secretary,'' and inserting ``relevant FTA 
        Secretary,''.
            (L) Paragraph (8)(C) is amended by striking out ``under 
        article 1904 of the Agreement of a determination'' and inserting 
        ``of a determination under article 1904 of the NAFTA or the 
        Agreement''.
            (M) Paragraph (9) is amended by inserting ``of the NAFTA 
        or'' after ``chapter 19''.
            (N) Paragraph (10) is amended by striking out ``Government 
        of Canada'' and all that follows thereafter and inserting 
        ``Government of the relevant FTA country received notice of the 
        determination under paragraph 4 of article 1904 of the NAFTA or 
        the Agreement.''.
            (O) The following new paragraphs are added at the end:
        ``(11) Suspension and termination of suspension of article 1904 
    of the nafta.--
            ``(A) Suspension of article 1904.--If a special committee 
        established under article 1905 of the NAFTA issues an 
        affirmative finding, the Trade Representative may, in accordance 
        with paragraph 8(a) or 9, as appropriate, of article 1905 of the 
        NAFTA, suspend the operation of article 1904 of the NAFTA.
            ``(B) Termination of suspension of article 1904.--If a 
        special committee is reconvened and makes an affirmative 
        determination described in paragraph 10(b) of article 1905 of 
        the NAFTA, any suspension of the operation of article 1904 of 
        the NAFTA shall terminate.
        ``(12) Judicial review upon termination of binational panel or 
    committee review under the nafta.--
            ``(A) Notice of suspension or termination of suspension of 
        article 1904.--
                ``(i) Upon notification by the Trade Representative or 
            the Government of a country described in subsection (f)(10) 
            (A) or (B) that the operation of article 1904 of the NAFTA 
            has been suspended in accordance with paragraph 8(a) or 9 of 
            article 1905 of the NAFTA, the United States Secretary shall 
            publish in the Federal Register a notice of suspension of 
            article 1904 of the NAFTA.
                ``(ii) Upon notification by the Trade Representative or 
            the Government of a country described in subsection (f)(10) 
            (A) or (B) that the suspension of the operation of article 
            1904 of the NAFTA is terminated in accordance with paragraph 
            10 of article 1905 of the NAFTA, the United States Secretary 
            shall publish in the Federal Register a notice of 
            termination of suspension of article 1904 of the NAFTA.
            ``(B) Transfer of final determinations for judicial review 
        upon suspension of article 1904.--If the operation of article 
        1904 of the NAFTA is suspended in accordance with paragraph 8(a) 
        or 9 of article 1905 of the NAFTA--
                ``(i) upon the request of an authorized person described 
            in subparagraph (C), any final determination that is the 
            subject of a binational panel review or an extraordinary 
            challenge committee review shall be transferred to the 
            United States Court of International Trade (in accordance 
            with rules issued by the Court) for review under subsection 
            (a); or
                ``(ii) in a case in which--

                    ``(I) a binational panel review was completed fewer 
                than 30 days before the suspension, and

                    ``(II) extraordinary challenge committee review has 
                not been requested,

            upon the request of an authorized person described in 
            subparagraph (C) which is made within 60 days after the 
            completion of the binational panel review, the final 
            determination that was the subject of the binational panel 
            review shall be transferred to the United States Court of 
            International Trade (in accordance with rules issued by the 
            Court) for review under subsection (a).
            ``(C) Persons authorized to request transfer of final 
        determinations for judicial review.--A request that a final 
        determination be transferred to the Court of International Trade 
        under subparagraph (B) may be made by--
                ``(i) if the United States made an allegation under 
            paragraph 1 of article 1905 of the NAFTA and the operation 
            of article 1904 of the NAFTA was suspended pursuant to 
            paragraph 8(a) of article 1905 of the NAFTA--

                    ``(I) the government of the relevant country 
                described in subsection (f)(10) (A) or (B),
                    ``(II) an interested party that was a party to the 
                panel or committee review, or

                    ``(III) an interested party that was a party to the 
                proceeding in connection with which panel review was 
                requested, but only if the time period for filing 
                notices of appearance in the panel review has not 
                expired, or

                ``(ii) if a country described in subsection (f)(10) (A) 
            or (B) made an allegation under paragraph 1 of article 1905 
            of the NAFTA and the operation of article 1904 of the NAFTA 
            was suspended pursuant to paragraph 9 of article 1905 of the 
            NAFTA--

                    ``(I) the government of that country,
                    ``(II) an interested party that is a person of that 
                country and that was a party to the panel or committee 
                review, or
                    ``(III) an interested party that is a person of that 
                country and that was a party to the proceeding in 
                connection with which panel review was requested, but 
                only if the time period for filing notices of appearance 
                in the panel review has not expired.

            ``(D)(i) Transfer for judicial review upon settlement.--If 
        the Trade Representative achieves a settlement with the 
        government of a country described in subsection (f)(10) (A) or 
        (B) pursuant to paragraph 7 of article 1905 of the NAFTA, and 
        referral for judicial review is among the terms of such 
        settlement, any final determination that is the subject of a 
        binational panel review or an extraordinary challenge committee 
        review shall, upon a request described in clause (ii), be 
        transferred to the United States Court of International Trade 
        (in accordance with rules issued by the Court) for review under 
        subsection (a).
            ``(ii) A request referred to in clause (i) is a request made 
        by--
                ``(I) the country referred to in clause (i),
                ``(II) an interested party that was a party to the panel 
            or committee review, or
                ``(III) an interested party that was a party to the 
            proceeding in connection with which panel review was 
            requested, but only if the time for filing notices of 
            appearance in the panel review has not expired.''.
    SEC. 412. CONFORMING AMENDMENTS TO OTHER PROVISIONS OF THE TARIFF 
      ACT OF 1930.
    (a) Regulations for Appraisement and Classification; Finality and 
Decision.--Sections 502(b) and 514(b) of the Tariff Act of 1930 (19 
U.S.C. 1502(b) and 1514(b)) are each amended by inserting ``the North 
American Free Trade Agreement or'' before ``the United States-Canada 
Free-Trade Agreement''.
    (b) Definition.--Section 771 of the Tariff Act of 1930 (19 U.S.C. 
1677) is amended--
        (1) by redesignating as paragraph (21) (and placing in numerical 
    sequence) the second paragraph that is designated as paragraph (18) 
    (relating to the definition of the United States-Canada Agreement) 
    in such section; and
        (2) by inserting after paragraph (21) (as redesignated by 
    paragraph (1) of this subsection) the following new paragraph:
        ``(22) NAFTA.--The term `NAFTA' means the North American Free 
    Trade Agreement.''.
    (c) Disclosure of Proprietary Information in Title VII 
Proceedings.--Section 777(f) of the Tariff Act of 1930 (19 U.S.C. 
1677f(f)) is amended--
        (1) by inserting ``the North American Free Trade Agreement or'' 
    before ``the United States-Canada Agreement'' in the heading;
        (2) by inserting ``the NAFTA or'' before ``the United States-
    Canada Agreement'' each place it appears in paragraph (1)(A);
        (3) in the second sentence of paragraph (1)(A)--
            (A) by inserting ``or extraordinary challenge committee'' 
        after ``binational panel''; and
            (B) by inserting ``or committee'' after ``the panel'';
        (4) in paragraph (1)(B)--
            (A) by inserting ``the NAFTA or'' before ``the Agreement'' 
        in clauses (iii) and (iv); and
            (B) by striking out ``Government of Canada designated by an 
        authorized agency of Canada'' in clause (iv) and inserting 
        ``Government of a free trade area country (as defined in section 
        516A(f)(10)) designated by an authorized agency of such 
        country'';
        (5) in paragraph (2) by inserting ``, including any 
    extraordinary challenge,'' after ``binational panel proceeding'';
        (6) in paragraph (3)--
            (A) by inserting ``or extraordinary challenge committee'' 
        after ``binational panel'', and
            (B) by inserting ``the NAFTA or'' before ``the United 
        States-Canada Agreement'';
        (7) by striking out ``agency of Canada'' in each of paragraphs 
    (3) and (4) and inserting ``agency of a free trade area country (as 
    defined in section 516A(f)(10))''; and
        (8) in the first sentence of paragraph (4) by inserting ``, 
    except a judge appointed to a binational panel or an extraordinary 
    challenge committee under section 402(b) of the North American Free 
    Trade Agreement Implementation Act,'' after ``Any person''.
    SEC. 413. CONSEQUENTIAL AMENDMENT TO FREE-TRADE AGREEMENT ACT OF 
      1988.
    Section 410(a) of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988 (19 U.S.C. 2112 note) is amended by adding at 
the end the following new sentence: ``In calculating the 7-year period 
referred to in paragraph (1), any time during which Canada is a NAFTA 
country (as defined in section 2(4) of the North American Free Trade 
Agreement Implementation Act) shall be disregarded.''.
    SEC. 414. CONFORMING AMENDMENTS TO TITLE 28, UNITED STATES CODE.
    (a) Court of International Trade.--Chapter 95 of title 28, United 
States Code, is amended--
        (1) in section 1581(i) by inserting ``the North American Free 
    Trade Agreement or'' before ``the United States-Canada Free-Trade 
    Agreement'';
        (2) in section 1584--
            (A) by amending the section heading to read as follows:
``§1584. Civil actions under the North American Free Trade 
     Agreement or the United States-Canada Free-Trade Agreement''; and
            (B) by striking out ``777(d)'' and inserting ``777(f)''; and
        (3) in the table of contents for such chapter by amending the 
    entry for section 1584 to read as follows:
``1584. Civil actions under the North American Free Trade Agreement or 
          the United States-Canada Free-Trade Agreement.''.

    (b) Particular Proceedings.--Sections 2201(a) and 2643(c)(5) of 
title 28, United States Code, are each amended by striking out 
``Canadian merchandise,'' and inserting ``merchandise of a free trade 
area country (as defined in section 516A(f)(10) of the Tariff Act of 
1930),''.

SEC. 415. EFFECT OF TERMINATION OF NAFTA COUNTRY STATUS.

    (a) In General.--Except as provided in subsection (b), on the date 
on which a country ceases to be a NAFTA country, the provisions of this 
title (other than this section) and the amendments made by this title 
shall cease to have effect with respect to that country.
    (b) Transition Provisions.--
        (1) Proceedings regarding protective orders and undertakings.--
    If on the date on which a country ceases to be a NAFTA country an 
    investigation or enforcement proceeding concerning the violation of 
    a protective order issued under section 777(f) of the Tariff Act of 
    1930 (as amended by this subtitle) or an undertaking of the 
    Government of that country is pending, the investigation or 
    proceeding shall continue, and sanctions may continue to be imposed, 
    in accordance with the provisions of such section 777(f).
        (2) Binational panel and extraordinary challenge committee 
    reviews.--If on the date on which a country ceases to be a NAFTA 
    country--
            (A) a binational panel review under article 1904 of the 
        Agreement is pending, or has been requested; or
            (B) an extraordinary challenge committee review under 
        article 1904 of the Agreement is pending, or has been requested;
    with respect to a determination which involves a class or kind of 
    merchandise and to which section 516A(g)(2) of the Tariff Act of 
    1930 applies, such determination shall be reviewable under section 
    516A(a) of the Tariff Act of 1930. In the case of a determination to 
    which the provisions of this paragraph apply, the time limits for 
    commencing an action under 516A(a) of the Tariff Act of 1930 shall 
    not begin to run until the date on which the Agreement ceases to be 
    in force with respect to that country.

SEC. 416. EFFECTIVE DATE.

    The provisions of this title and the amendments made by this title 
take effect on the date the Agreement enters into force with respect to 
the United States, but shall not apply--
        (1) to any final determination described in paragraph (1)(B), or 
    (2)(B) (i), (ii), or (iii), of section 516A(a) of the Tariff Act of 
    1930 notice of which is published in the Federal Register before 
    such date, or to a determination described in paragraph (2)(B)(vi) 
    of section 516A(a) of such Act notice of which is received by the 
    Government of Canada or Mexico before such date; or
        (2) to any binational panel review under the United States-
    Canada Free-Trade Agreement, or any extraordinary challenge arising 
    out of any such review, that was commenced before such date.
 TITLE V--NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER PROVISIONS
      Subtitle A--NAFTA Transitional Adjustment Assistance Program

SEC. 501. SHORT TITLE.

    This subtitle may be cited as the ``NAFTA Worker Security Act''.
    SEC. 502. ESTABLISHMENT OF NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE 
      PROGRAM.
    Chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et 
seq.) is amended by adding at the end the following new subchapter:

    ``Subchapter D--NAFTA Transitional Adjustment Assistance Program

``SEC. 250. ESTABLISHMENT OF TRANSITIONAL PROGRAM.

    ``(a) Group Eligibility Requirements.--
        ``(1) Criteria.--A group of workers (including workers in any 
    agricultural firm or subdivision of an agricultural firm) shall be 
    certified as eligible to apply for adjustment assistance under this 
    subchapter pursuant to a petition filed under subsection (b) if the 
    Secretary determines that a significant number or proportion of the 
    workers in such workers' firm or an appropriate subdivision of the 
    firm have become totally or partially separated, or are threatened 
    to become totally or partially separated, and either--
            ``(A) that--
                ``(i) the sales or production, or both, of such firm or 
            subdivision have decreased absolutely,
                ``(ii) imports from Mexico or Canada of articles like or 
            directly competitive with articles produced by such firm or 
            subdivision have increased, and
                ``(iii) the increase in imports under clause (ii) 
            contributed importantly to such workers' separation or 
            threat of separation and to the decline in the sales or 
            production of such firm or subdivision; or
            ``(B) that there has been a shift in production by such 
        workers' firm or subdivision to Mexico or Canada of articles 
        like or directly competitive with articles which are produced by 
        the firm or subdivision.
        ``(2) Definition of contributed importantly.--The term 
    `contributed importantly', as used in paragraph (1)(A)(iii), means a 
    cause which is important but not necessarily more important than any 
    other cause.
        ``(3) Regulations.--The Secretary shall issue regulations 
    relating to the application of the criteria described in paragraph 
    (1) in making preliminary findings under subsection (b) and 
    determinations under subsection (c).
    ``(b) Preliminary Findings and Basic Assistance.--
        ``(1) Filing of petitions.--A petition for certification of 
    eligibility to apply for adjustment assistance under this subchapter 
    may be filed by a group of workers (including workers in any 
    agricultural firm or subdivision of an agricultural firm) or by 
    their certified or recognized union or other duly authorized 
    representative with the Governor of the State in which such workers' 
    firm or subdivision thereof is located.
        ``(2) Findings and assistance.--Upon receipt of a petition under 
    paragraph (1), the Governor shall--
            ``(A) notify the Secretary that the Governor has received 
        the petition;
            ``(B) within 10 days after receiving the petition--
                ``(i) make a preliminary finding as to whether the 
            petition meets the criteria described in subsection (a)(1) 
            (and for purposes of this clause the criteria described 
            under subparagraph (A)(iii) of such subsection shall be 
            disregarded), and
                ``(ii) transmit the petition, together with a statement 
            of the finding under clause (i) and reasons therefor, to the 
            Secretary for action under subsection (c); and
            ``(C) if the preliminary finding under subparagraph (B)(i) 
        is affirmative, ensure that rapid response and basic 
        readjustment services authorized under other Federal law are 
        made available to the workers.
    ``(c) Review of Petitions by Secretary; Certifications.--
        ``(1) In general.--The Secretary, within 30 days after receiving 
    a petition under subsection (b), shall determine whether the 
    petition meets the criteria described in subsection (a)(1). Upon a 
    determination that the petition meets such criteria, the Secretary 
    shall issue to workers covered by the petition a certification of 
    eligibility to apply for assistance described in subsection (d).
        ``(2) Denial of certification.--Upon denial of certification 
    with respect to a petition under paragraph (1), the Secretary shall 
    review the petition in accordance with the requirements of 
    subchapter A to determine if the workers may be certified under such 
    subchapter.
    ``(d) Comprehensive Assistance.--Workers covered by certification 
issued by the Secretary under subsection (c) shall be provided, in the 
same manner and to the same extent as workers covered under a 
certification under subchapter A, the following:
        ``(1) Employment services described in section 235.
        ``(2) Training described in section 236, except that 
    notwithstanding the provisions of section 236(a)(2)(A), the total 
    amount of payments for training under this subchapter for any fiscal 
    year shall not exceed $30,000,000.
        ``(3) Trade readjustment allowances described in sections 231 
    through 234, except that--
            ``(A) the provisions of sections 231(a)(5)(C) and 231(c), 
        authorizing the payment of trade readjustment allowances upon a 
        finding that it is not feasible or appropriate to approve a 
        training program for a worker, shall not be applicable to 
        payment of such allowances under this subchapter; and
            ``(B) notwithstanding the provisions of section 233(b), in 
        order for a worker to qualify for trade readjustment allowances 
        under this subchapter, the worker shall be enrolled in a 
        training program approved by the Secretary under section 236(a) 
        by the later of--
                ``(i) the last day of the 16th week of such worker's 
            initial unemployment compensation benefit period, or
                ``(ii) the last day of the 6th week after the week in 
            which the Secretary issues a certification covering such 
            worker.
    In cases of extenuating circumstances relating to enrollment in a 
    training program, the Secretary may extend the time for enrollment 
    for a period not to exceed 30 days.
        ``(4) Job search allowances described in section 237.
        ``(5) Relocation allowances described in section 238.
    ``(e) Administration.--The provisions of subchapter C shall apply to 
the administration of the program under this subchapter in the same 
manner and to the same extent as such provisions apply to the 
administration of the program under subchapters A and B, except that the 
agreement between the Secretary and the States described in section 239 
shall specify the procedures that will be used to carry out the 
certification process under subsection (c) and the procedures for 
providing relevant data by the Secretary to assist the States in making 
preliminary findings under subsection (b).''.

SEC. 503. CONFORMING AMENDMENTS.

    (a) References.--Sections 221(a), 222(a), and 223(a) of the Trade 
Act of 1974 (19 U.S.C. 2271(a), 2272(a), and 2273(a)) are each amended 
by striking out ``assistance under this chapter'' and inserting 
``assistance under this subchapter''.
    (b) Benefit Information.--Section 225(b) of the Trade Act of 1974 
(19 U.S.C. 2275(b)) is amended by inserting ``or subchapter D'' after 
``subchapter A'' each place it appears.
    (c) Nonduplication of Assistance.--Subchapter C of chapter 2 of 
title II of the Trade Act of 1974 is amended by adding at the end the 
following new section:

``SEC. 249A. NONDUPLICATION OF ASSISTANCE.

    ``No worker may receive assistance relating to a separation pursuant 
to certifications under both subchapters A and D of this chapter.''.
    (d) Judicial Review.--Section 284(a) of the Trade Act of 1974 (19 
U.S.C. 2395(a)) is amended by inserting ``or section 250(c)'' after 
``section 223''.
    (e) Table of Contents.--The table of contents for chapter 2 of title 
II of the Trade Act of 1974 is amended--
        (1) by inserting after the item relating to section 249 the 
    following new item:
``Sec. 249A. Nonduplication of assistance.'';

    and
        (2) by adding at the end thereof the following new items:


     ``SUBCHAPTER D--NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE PROGRAM

``Sec. 250. Establishment of transitional program.''.

SEC. 504. AUTHORIZATION OF APPROPRIATIONS.

    Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is amended--
        (1) by striking ``There'' and inserting ``(a) In General.--
    There'',
        (2) by inserting ``, other than subchapter D'' after 
    ``chapter'', and
        (3) by adding at the end the following new subsection:
    ``(b) Subchapter D.--There are authorized to be appropriated to the 
Department of Labor, for each of fiscal years 1994, 1995, 1996, 1997, 
and 1998, such sums as may be necessary to carry out the purposes of 
subchapter D of this chapter.''.

SEC. 505. TERMINATION OF TRANSITION PROGRAM.

    Subsection (c) of section 285 of the Trade Act of 1974 (19 U.S.C. 
2271 preceding note) is amended--
        (1) by striking ``No'' and inserting ``(1) Except as provided in 
    paragraph (2), no''; and
        (2) by adding at the end the following new paragraph:
    ``(2)(A) Except as provided in subparagraph (B), no assistance, 
vouchers, allowances, or other payments may be provided under subchapter 
D of chapter 2 after the day that is the earlier of--
        ``(i) September 30, 1998, or
        ``(ii) the date on which legislation, establishing a program 
    providing dislocated workers with comprehensive assistance 
    substantially similar to the assistance provided by such subchapter 
    D, becomes effective.
    ``(B) Notwithstanding subparagraph (A), if, on or before the day 
described in subparagraph (A), a worker--
        ``(i) is certified as eligible to apply for assistance, under 
    subchapter D of chapter 2; and
        ``(ii) is otherwise eligible to receive assistance in accordance 
    with section 250,
such worker shall continue to be eligible to receive such assistance for 
any week for which the worker meets the eligibility requirements of such 
section.''.

SEC. 506. EFFECTIVE DATE.

    (a) In General.--The amendments made by sections 501, 502, 503, 504, 
and 505 shall take effect on the date the Agreement enters into force 
with respect to the United States.
    (b) Covered Workers.--
        (1) General rule.--Except as provided in paragraph (2), no 
    worker shall be certified as eligible to receive assistance under 
    subchapter D of chapter 2 of title II of the Trade Act of 1974 (as 
    added by this subtitle) whose last total or partial separation from 
    a firm (or appropriate subdivision of a firm) occurred before such 
    date of entry into force.
        (2) Reachback.--Notwithstanding paragraph (1), any worker--
            (A) whose last total or partial separation from a firm (or 
        appropriate subdivision of a firm) occurs--
                (i) after the date of the enactment of this Act, and
                (ii) before such date of entry into force, and
            (B) who would otherwise be eligible to receive assistance 
        under subchapter D of chapter 2 of title II of the Trade Act of 
        1974,
    shall be eligible to receive such assistance in the same manner as 
    if such separation occurred on or after such date of entry into 
    force.
    SEC. 507. TREATMENT OF SELF-EMPLOYMENT ASSISTANCE PROGRAMS.
    (a) General Rule.--Section 3306 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(t) Self-Employment Assistance Program.--For the purposes of this 
chapter, the term `self-employment assistance program' means a program 
under which--
        ``(1) individuals who meet the requirements described in 
    paragraph (3) are eligible to receive an allowance in lieu of 
    regular unemployment compensation under the State law for the 
    purpose of assisting such individuals in establishing a business and 
    becoming self-employed;
        ``(2) the allowance payable to individuals pursuant to paragraph 
    (1) is payable in the same amount, at the same interval, on the same 
    terms, and subject to the same conditions, as regular unemployment 
    compensation under the State law, except that--
            ``(A) State requirements relating to availability for work, 
        active search for work, and refusal to accept work are not 
        applicable to such individuals;
            ``(B) State requirements relating to disqualifying income 
        are not applicable to income earned from self-employment by such 
        individuals; and
            ``(C) such individuals are considered to be unemployed for 
        the purposes of Federal and State laws applicable to 
        unemployment compensation,
    as long as such individuals meet the requirements applicable under 
    this subsection;
        ``(3) individuals may receive the allowance described in 
    paragraph (1) if such individuals--
            ``(A) are eligible to receive regular unemployment 
        compensation under the State law, or would be eligible to 
        receive such compensation except for the requirements described 
        in subparagraph (A) or (B) of paragraph (2);
            ``(B) are identified pursuant to a State worker profiling 
        system as individuals likely to exhaust regular unemployment 
        compensation; and
            ``(C) are participating in self-employment assistance 
        activities which--
                ``(i) include entrepreneurial training, business 
            counseling, and technical assistance; and
                ``(ii) are approved by the State agency; and
            ``(D) are actively engaged on a full-time basis in 
        activities (which may include training) relating to the 
        establishment of a business and becoming self-employed;
        ``(4) the aggregate number of individuals receiving the 
    allowance under the program does not at any time exceed 5 percent of 
    the number of individuals receiving regular unemployment 
    compensation under the State law at such time;
        ``(5) the program does not result in any cost to the 
    Unemployment Trust Fund (established by section 904(a) of the Social 
    Security Act) in excess of the cost that would be incurred by such 
    State and charged to such Fund if the State had not participated in 
    such program; and
        ``(6) the program meets such other requirements as the Secretary 
    of Labor determines to be appropriate.''.
    (b) Conforming Amendments.--
        (1) Section 3304(a)(4) of such Code is amended--
            (A) in subparagraph (D), by striking ``; and'' and inserting 
        a semicolon;
            (B) in subparagraph (E), by striking the semicolon and 
        inserting ``; and''; and
            (C) by adding at the end the following new subparagraph:
            ``(F) amounts may be withdrawn for the payment of allowances 
        under a self-employment assistance program (as defined in 
        section 3306(t));''.
        (2) Section 3306(f) of such Code is amended--
            (A) in paragraph (3), by striking ``; and'' and inserting a 
        semicolon;
            (B) in paragraph (4), by striking the period and inserting 
        ``; and''; and
            (C) by adding at the end the following new paragraph:
        ``(5) amounts may be withdrawn for the payment of allowances 
    under a self-employment assistance program (as defined in subsection 
    (t)).''.
        (3) Section 303(a)(5) of the Social Security Act (42 U.S.C. 
    503(a)(5)) is amended by striking ``; and'' and inserting ``: 
    Provided further, That amounts may be withdrawn for the payment of 
    allowances under a self-employment assistance program (as defined in 
    section 3306(t) of the Internal Revenue Code of 1986); and''.
    (c) State Reports.--Any State operating a self-employment program 
authorized by the Secretary of Labor under this section shall report 
annually to the Secretary on the number of individuals who participate 
in the self-employment assistance program, the number of individuals who 
are able to develop and sustain businesses, the operating costs of the 
program, compliance with program requirements, and any other relevant 
aspects of program operations requested by the Secretary.
    (d) Report to Congress.--Not later than 4 years after the date of 
the enactment of this Act, the Secretary of Labor shall submit a report 
to the Congress with respect to the operation of the program authorized 
under this section. Such report shall be based on the reports received 
from the States pursuant to subsection (c) and include such other 
information as the Secretary of Labor determines is appropriate.
    (e) Effective Date; Sunset.--
        (1) Effective date.--The provisions of this section and the 
    amendments made by this section shall take effect on the date of the 
    enactment of this Act.
        (2) Sunset.--The authority provided by this section, and the 
    amendments made by this section, shall terminate 5 years after the 
    date of the enactment of this Act.
   Subtitle B--Provisions Relating to Performance Under the Agreement

SEC. 511. DISCRIMINATORY TAXES.

    It is the sense of the Congress that when a State, province, or 
other governmental entity of a NAFTA country discriminatorily enforces 
sales or other taxes so as to afford protection to domestic production 
or domestic service providers, such enforcement is in violation of the 
terms of the Agreement. When such discriminatory enforcement adversely 
affects United States producers of goods or United States service 
providers, the Trade Representative should pursue all appropriate 
remedies to obtain removal of such discriminatory enforcement, including 
invocation of the provisions of the Agreement.
    SEC. 512. REVIEW OF THE OPERATION AND EFFECTS OF THE AGREEMENT.
    (a) Study.--By not later than July 1, 1997, the President shall 
provide to the Congress a comprehensive study on the operation and 
effects of the Agreement. The study shall include an assessment of the 
following factors:
        (1) The net effect of the Agreement on the economy of the United 
    States, including with respect to the United States gross national 
    product, employment, balance of trade, and current account balance.
        (2) The industries (including agricultural industries) in the 
    United States that have significantly increased exports to Mexico or 
    Canada as a result of the Agreement, or in which imports into the 
    United States from Mexico or Canada have increased significantly as 
    a result of the Agreement, and the extent of any change in the 
    wages, employment, or productivity in each such industry as a result 
    of the Agreement.
        (3) The extent to which investment in new or existing production 
    or other operations in the United States has been redirected to 
    Mexico as a result of the Agreement, and the effect on United States 
    employment of such redirection.
        (4) The extent of any increase in investment, including foreign 
    direct investment and increased investment by United States 
    investors, in new or existing production or other operations in the 
    United States as a result of the Agreement, and the effect on United 
    States employment of such investment.
        (5) The extent to which the Agreement has contributed to--
            (A) improvement in real wages and working conditions in 
        Mexico,
            (B) effective enforcement of labor and environmental laws in 
        Mexico, and
            (C) the reduction or abatement of pollution in the region of 
        the United States-Mexico border.
    (b) Scope.--In assessing the factors listed in subsection (a), to 
the extent possible, the study shall distinguish between the 
consequences of the Agreement and events that likely would have occurred 
without the Agreement. In addition, the study shall evaluate the effects 
of the Agreement relative to aggregate economic changes and, to the 
extent possible, relative to the effects of other factors, including--
        (1) international competition,
        (2) reductions in defense spending,
        (3) the shift from traditional manufacturing to knowledge and 
    information based economic activity, and
        (4) the Federal debt burden.
    (c) Recommendations of the President.--The study shall include any 
appropriate recommendations by the President with respect to the 
operation and effects of the Agreement, including recommendations with 
respect to the specific factors listed in subsection (a).
    (d) Recommendations of Certain Committees.--The President shall 
provide the study to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate and any other 
committee that has jurisdiction over any provision of United States law 
that was either enacted or amended by the North American Free Trade 
Agreement Implementation Act. Each such committee may hold hearings and 
make recommendations to the President with respect to the operation and 
effects of the Agreement.
    SEC. 513. ACTIONS AFFECTING UNITED STATES CULTURAL INDUSTRIES.
    Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) is amended by 
adding at the end the following new subsection:
    ``(f) Special Rule for Actions Affecting United States Cultural 
Industries.--
        ``(1) In general.--By no later than the date that is 30 days 
    after the date on which the annual report is submitted to 
    Congressional committees under section 181(b), the Trade 
    Representative shall identify any act, policy, or practice of Canada 
    which--
            ``(A) affects cultural industries,
            ``(B) is adopted or expanded after December 17, 1992, and
            ``(C) is actionable under article 2106 of the North American 
        Free Trade Agreement.
        ``(2) Special rules for identifications.--For purposes of 
    section 302(b)(2)(A), an act, policy, or practice identified under 
    this subsection shall be treated as an act, policy, or practice that 
    is the basis for identification of a country under subsection 
    (a)(2), unless the United States has already taken action pursuant 
    to article 2106 of the North American Free Trade Agreement in 
    response to such act, policy, or practice. In deciding whether to 
    identify an act, policy, or practice under paragraph (1), the Trade 
    Representative shall--
            ``(A) consult with and take into account the views of 
        representatives of the relevant domestic industries, appropriate 
        committees established pursuant to section 135, and appropriate 
        officers of the Federal Government, and
            ``(B) take into account the information from such sources as 
        may be available to the Trade Representative and such 
        information as may be submitted to the Trade Representative by 
        interested persons, including information contained in reports 
        submitted under section 181(b).
        ``(3) Cultural industries.--For purposes of this subsection, the 
    term `cultural industries' means persons engaged in any of the 
    following activities:
            ``(A) The publication, distribution, or sale of books, 
        magazines, periodicals, or newspapers in print or machine 
        readable form but not including the sole activity of printing or 
        typesetting any of the foregoing.
            ``(B) The production, distribution, sale, or exhibition of 
        film or video recordings.
            ``(C) The production, distribution, sale, or exhibition of 
        audio or video music recordings.
            ``(D) The publication, distribution, or sale of music in 
        print or machine readable form.
            ``(E) Radio communications in which the transmissions are 
        intended for direct reception by the general public, and all 
        radio, television, and cable broadcasting undertakings and all 
        satellite programming and broadcast network services.''.
    SEC. 514. REPORT ON IMPACT OF NAFTA ON MOTOR VEHICLE EXPORTS TO 
      MEXICO.
    (a) Findings.--The Congress makes the following findings:
        (1) Trade in motor vehicles and motor vehicle parts is one of 
    the most restricted areas of trade between the United States and 
    Mexico.
        (2) The elimination of Mexico's restrictive barriers to trade in 
    motor vehicles and motor vehicle parts over a 10-year period under 
    the Agreement should increase substantially United States exports of 
    such products to Mexico.
        (3) The Department of Commerce estimates that the Agreement 
    provides the opportunity to increase United States exports of motor 
    vehicles and motor vehicle parts by $1,000,000,000 during the first 
    year of the Agreement's implementation with the potential for 
    additional increases over the 10-year transition period.
        (4) The United States automotive industry has estimated that 
    United States exports of motor vehicles to Mexico should increase to 
    more than 60,000 units during the first year of the Agreement's 
    implementation, which is substantially above the current level of 
    4,000 units.
    (b) Trade Representative Report.--No later than July 1, 1995, and 
annually thereafter through 1999, the Trade Representative shall submit 
a report to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives on how effective the 
provisions of the Agreement are with respect to increasing United States 
exports of motor vehicles and motor vehicle parts to Mexico. Each report 
shall identify and determine the following:
        (1) The patterns of trade in motor vehicles and motor vehicle 
    parts between the United States and Mexico during the preceding 12-
    month period.
        (2) The level of tariff and nontariff barriers that were in 
    force during the preceding 12-month period.
        (3) The amount by which United States exports of motor vehicles 
    and motor vehicle parts to Mexico have increased from the preceding 
    12-month period as a result of the elimination of Mexican tariff and 
    nontariff barriers under the Agreement.
        (4) Whether any such increase in United States exports meets the 
    levels of new export opportunities anticipated under the Agreement.
        (5) If the anticipated levels of new United States export 
    opportunities are not reached, what actions the Trade Representative 
    is prepared to take to realize the benefits anticipated under the 
    Agreement, including possible initiation of additional negotiations 
    with Mexico for the purpose of seeking modifications of the 
    Agreement.

SEC. 515. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC TRADE.

    (a) Amendment to the CBI.--The Caribbean Basin Economic Recovery Act 
(19 U.S.C. 2701 et seq.) is amended by inserting after section 218 the 
following new section:
    ``SEC. 219. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC TRADE.
    ``(a)  Establishment.--The Commissioner of Customs, after 
consultation with appropriate officials in the State of Texas, is 
authorized and directed to make grants to an institution (or a 
consortium of such institutions) to assist such institution in planning, 
establishing, and operating a Center for the Study of Western 
Hemispheric Trade (hereafter in this section referred to as the 
`Center'). The Commissioner of Customs shall make the first grant not 
later than December 1, 1994, and the Center shall be established not 
later than February 1, 1995.
    ``(b)  Scope of the Center.--The Center shall be a year-round 
program operated by an institution located in the State of Texas (or a 
consortium of such institutions), the purpose of which is to promote and 
study trade between and among Western Hemisphere countries. The Center 
shall conduct activities designed to examine--
        ``(1) the impact of the NAFTA on the economies in, and trade 
    within, the Western Hemisphere,
        ``(2) the negotiation of any future free trade agreements, 
    including possible accessions to the NAFTA; and
        ``(3) adjusting tariffs, reducing nontariff barriers, improving 
    relations among customs officials, and promoting economic relations 
    among countries in the Western Hemisphere.
    ``(c)  Consultation; Selection Criteria.--The Commissioner of 
Customs shall consult with appropriate officials of the State of Texas 
and private sector authorities with respect to selecting, planning, and 
establishing the Center. In selecting the appropriate institution, the 
Commissioner of Customs shall give consideration to--
        ``(1) the institution's ability to carry out the programs and 
    activities described in this section; and
        ``(2) any resources the institution can provide the Center in 
    addition to Federal funds provided under this program.
    ``(d)  Programs and Activities.--The Center shall conduct the 
following activities:
        ``(1) Provide forums for international discussion and debate for 
    representatives from countries in the Western Hemisphere regarding 
    issues which affect trade and other economic relations within the 
    hemisphere, including the impact of the NAFTA on individual 
    economies and the desirability and feasibility of possible 
    accessions to the NAFTA by such countries.
        ``(2) Conduct studies and research projects on subjects which 
    affect Western Hemisphere trade, including tariffs, customs, 
    regional and national economics, business development and finance, 
    production and personnel management, manufacturing, agriculture, 
    engineering, transportation, immigration, telecommunications, 
    medicine, science, urban studies, border demographics, social 
    anthropology, and population.
        ``(3) Publish materials, disseminate information, and conduct 
    seminars and conferences to support and educate representatives from 
    countries in the Western Hemisphere who seek to do business with or 
    invest in other Western Hemisphere countries.
        ``(4) Provide grants, fellowships, endowed chairs, and financial 
    assistance to outstanding scholars and authorities from Western 
    Hemisphere countries.
        ``(5) Provide grants, fellowships, and other financial 
    assistance to qualified graduate students, from Western Hemisphere 
    countries, to study at the Center.
        ``(6) Implement academic exchange programs and other cooperative 
    research and instructional agreements with the complementary North/
    South Center at the University of Miami at Coral Gables.
    ``(e)  Definitions.--For purposes of this section--
        ``(1) Nafta.--The term `NAFTA' means the North American Free 
    Trade Agreement.
        ``(2)  Western hemisphere countries.--The terms `Western 
    Hemisphere countries', `countries in the Western Hemisphere', and 
    `Western Hemisphere' mean Canada, the United States, Mexico, 
    countries located in South America, beneficiary countries (as 
    defined by section 212), the Commonwealth of Puerto Rico, and the 
    United States Virgin Islands.
    ``(f)  Fees for Seminars and Publications.--Notwithstanding any 
other provision of law, a grant made under this section may provide that 
the Center may charge a reasonable fee for attendance at seminars and 
conferences and for copies of publications, studies, reports, and other 
documents the Center publishes. The Center may waive such fees in any 
case in which it determines imposing a fee would impose a financial 
hardship and the purposes of the Center would be served by granting such 
a waiver.
    ``(g) Duration of Grant.--The Commissioner of Customs is directed to 
make grants to any institution or institutions selected as the Center 
for fiscal years 1994, 1995, 1996, and 1997.
    ``(h) Report.--The Commissioner of Customs shall, no later than July 
1, 1994, and annually thereafter for years for which grants are made, 
submit a written report to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Representatives. The 
first report shall include--
        ``(1) a statement identifying the institution or institutions 
    selected as the Center,
        ``(2) the reasons for selecting the institution or institutions 
    as the Center, and
        ``(3) the plan of such institution or institutions for operating 
    the Center.
Each subsequent report shall include information with respect to the 
operations of the Center, the collaboration of the Center with, and 
dissemination of information to, Government policymakers and the 
business community with respect to the study of Western Hemispheric 
trade by the Center, and the plan and efforts of the Center to continue 
operations after grants under this section have expired.''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 for fiscal year 1994, and such sums as may be 
necessary in the 3 succeeding fiscal years to carry out the purposes of 
section 219 of the Caribbean Basin Economic Recovery Act (as added by 
subsection (a)).

SEC. 516. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
provisions of this subtitle shall take effect on the date the Agreement 
enters into force with respect to the United States.
    (b) Exception.--Section 515 shall take effect on the date of the 
enactment of this Act.
                           Subtitle C--Funding

                        PART 1--CUSTOMS USER FEES

SEC. 521. FEES FOR CERTAIN CUSTOMS SERVICES.

    (a) In General.--Section 13031 of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c) is amended--
        (1) by amending paragraph (5) of subsection (a) to read as 
    follows:
        ``(5)(A) For fiscal years 1994, 1995, 1996, and 1997, for the 
    arrival of each passenger aboard a commercial vessel or commercial 
    aircraft from outside the customs territory of the United States, 
    $6.50.
        ``(B) For fiscal year 1998 and each fiscal year thereafter, for 
    the arrival of each passenger aboard a commercial vessel or 
    commercial aircraft from a place outside the United States (other 
    than a place referred to in subsection (b)(1)(A) of this section), 
    $5.''
        (2) by adding at the end of paragraph (1) of subsection (b), the 
    following flush sentence:
    ``Subparagraph (A) shall not apply to fiscal years 1994, 1995, 1996, 
    and 1997.'',
        (3) in subsection (f)--
            (A) in paragraph (1), by striking ``except'' and all that 
        follows through the end period and inserting: ``except--
            ``(A) the portion of such fees that is required under 
        paragraph (3) for the direct reimbursement of appropriations, 
        and
            ``(B) the portion of such fees that is determined by the 
        Secretary to be excess fees under paragraph (5).'',
            (B) in paragraph (3)(A), by striking the first parenthetical 
        and inserting ``(other than the fees under subsection (a) (9) 
        and (10) and the excess fees determined by the Secretary under 
        paragraph (5))'',
            (C) in paragraph (4), by striking ``under subsection (a)'' 
        and inserting ``under subsection (a) (other than the excess fees 
        determined by the Secretary under paragraph (5))'', and
            (D) by adding at the end thereof the following new 
        paragraph:
        ``(5) At the close of each of fiscal years 1994, 1995, 1996, and 
    1997, the Secretary of the Treasury shall determine the amount of 
    the fees collected under paragraph (5)(A) of subsection (a) for that 
    fiscal year that exceeds the amount of such fees that would have 
    been collected for such fiscal year if the fees that were in effect 
    on the day before the effective date of this paragraph applied to 
    such fiscal year. The amount of the excess fees determined under the 
    preceding sentence shall be deposited in the Customs User Fee 
    Account and shall be available for reimbursement of inspectional 
    costs (including passenger processing costs) not otherwise 
    reimbursed under this section, and shall be available only to the 
    extent provided in appropriations Acts.'', and
        (4) in paragraph (3) of subsection (j), by striking ``September 
    30, 1998'' and inserting ``September 30, 2003''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date the Agreement enters into force with respect to the 
United States.

                PART 2--INTERNAL REVENUE CODE AMENDMENTS

    SEC. 522. AUTHORITY TO DISCLOSE CERTAIN TAX INFORMATION TO THE 
      UNITED STATES CUSTOMS SERVICE.
    (a) In General.--Subsection (l) of section 6103 of the Internal 
Revenue Code of 1986 (relating to confidentiality and disclosure of 
returns and return information) is amended by adding at the end thereof 
the following new paragraph:
        ``(14) Disclosure of return information to united states customs 
    service.--The Secretary may, upon written request from the 
    Commissioner of the United States Customs Service, disclose to 
    officers and employees of the Department of the Treasury such return 
    information with respect to taxes imposed by chapters 1 and 6 as the 
    Secretary may prescribe by regulations, solely for the purpose of, 
    and only to the extent necessary in--
            ``(A) ascertaining the correctness of any entry in audits as 
        provided for in section 509 of the Tariff Act of 1930 (19 U.S.C. 
        1509), or
            ``(B) other actions to recover any loss of revenue, or to 
        collect duties, taxes, and fees, determined to be due and owing 
        pursuant to such audits.''
    (b) Conforming Amendments.--Paragraphs (3)(A) and (4) of section 
6103(p) of such Code are each amended by striking ``or (13)'' each place 
it appears and inserting ``(13), or (14)''.
    (c) Effective Date.--
        (1) In general.--The amendments made by this section shall take 
    effect on the date the Agreement enters into force with respect to 
    the United States.
        (2) Regulations.--Not later than 90 days after the date of the 
    enactment of this Act, the Secretary of the Treasury or his delegate 
    shall issue temporary regulations to carry out section 6103(l)(14) 
    of the Internal Revenue Code of 1986, as added by this section.
    SEC. 523. USE OF ELECTRONIC FUND TRANSFER SYSTEM FOR COLLECTION OF 
      CERTAIN TAXES.
    (a) General Rule.--Section 6302 of the Internal Revenue Code of 1986 
(relating to mode or time of collection) is amended by redesignating 
subsection (h) as subsection (i) and by inserting after subsection (g) 
the following new subsection:
    ``(h) Use of Electronic Fund Transfer System for Collection of 
Certain Taxes.--
        ``(1) Establishment of system.--
            ``(A) In general.--The Secretary shall prescribe such 
        regulations as may be necessary for the development and 
        implementation of an electronic fund transfer system which is 
        required to be used for the collection of depository taxes. Such 
        system shall be designed in such manner as may be necessary to 
        ensure that such taxes are credited to the general account of 
        the Treasury on the date on which such taxes would otherwise 
        have been required to be deposited under the Federal tax deposit 
        system.
            ``(B) Exemptions.--The regulations prescribed under 
        subparagraph (A) may contain such exemptions as the Secretary 
        may deem appropriate.
        ``(2) Phase-in requirements.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the regulations referred to in paragraph (1)--
                ``(i) shall contain appropriate procedures to assure 
            that an orderly conversion from the Federal tax deposit 
            system to the electronic fund transfer system is 
            accomplished, and
                ``(ii) may provide for a phase-in of such electronic 
            fund transfer system by classes of taxpayers based on the 
            aggregate undeposited taxes of such taxpayers at the close 
            of specified periods and any other factors the Secretary may 
            deem appropriate.
            ``(B) Phase-in requirements.--The phase-in of the electronic 
        fund transfer system shall be designed in such manner as may be 
        necessary to ensure that--
                ``(i) during each fiscal year beginning after September 
            30, 1993, at least the applicable required percentage of the 
            total depository taxes imposed by chapters 21, 22, and 24 
            shall be collected by means of electronic fund transfer, and
                ``(ii) during each fiscal year beginning after September 
            30, 1993, at least the applicable required percentage of the 
            total other depository taxes shall be collected by means of 
            electronic fund transfer.
            ``(C) Applicable required percentage.--
                ``(i) In the case of the depository taxes imposed by 
            chapters 21, 22, and 24, the applicable required percentage 
            is--

                    ``(I) 3 percent for fiscal year 1994,
                    ``(II) 16.9 percent for fiscal year 1995,
                    ``(III) 20.1 percent for fiscal year 1996,
                    ``(IV) 58.3 percent for fiscal years 1997 and 1998, 
                and
                    ``(V) 94 percent for fiscal year 1999 and all fiscal 
                years thereafter.

                ``(ii) In the case of other depository taxes, the 
            applicable required percentage is--

                    ``(I) 3 percent for fiscal year 1994,
                    ``(II) 20 percent for fiscal year 1995,
                    ``(III) 30 percent for fiscal year 1996,
                    ``(IV) 60 percent for fiscal years 1997 and 1998, 
                and
                    ``(V) 94 percent for fiscal year 1999 and all fiscal 
                years thereafter.

        ``(3) Definitions.--For purposes of this subsection--
            ``(A) Depository tax.--The term `depository tax' means any 
        tax if the Secretary is authorized to require deposits of such 
        tax.
            ``(B) Electronic fund transfer.--The term `electronic fund 
        transfer' means any transfer of funds, other than a transaction 
        originated by check, draft, or similar paper instrument, which 
        is initiated through an electronic terminal, telephonic 
        instrument, or computer or magnetic tape so as to order, 
        instruct, or authorize a financial institution or other 
        financial intermediary to debit or credit an account.
        ``(4) Coordination with other electronic fund transfer 
    requirements.--
            ``(A) Coordination with certain excise taxes.--In 
        determining whether the requirements of subparagraph (B) of 
        paragraph (2) are met, taxes required to be paid by electronic 
        fund transfer under sections 5061(e) and 5703(b) shall be 
        disregarded.
            ``(B) Additional requirement.--Under regulations, any tax 
        required to be paid by electronic fund transfer under section 
        5061(e) or 5703(b) shall be paid in such a manner as to ensure 
        that the requirements of the second sentence of paragraph (1)(A) 
        of this subsection are satisfied.''.
    (b) Effective Date.--
        (1) In general.--The amendments made by this section shall take 
    effect on the date the Agreement enters into force with respect to 
    the United States.
        (2) Regulations.--Not later than 210 days after the date of 
    enactment of this Act, the Secretary of the Treasury or his delegate 
    shall prescribe temporary regulations under section 6302(h) of the 
    Internal Revenue Code of 1986 (as added by this section).
       Subtitle D--Implementation of NAFTA Supplemental Agreements

          PART 1--AGREEMENTS RELATING TO LABOR AND ENVIRONMENT

SEC. 531. AGREEMENT ON LABOR COOPERATION.

    (a) Commission for Labor Cooperation.--
        (1) Membership.--The United States is authorized to participate 
    in the Commission for Labor Cooperation in accordance with the North 
    American Agreement on Labor Cooperation.
        (2) Contributions to budget.--There are authorized to be 
    appropriated to the President (or such agency as the President may 
    designate) $2,000,000 for each of fiscal years 1994 and 1995 for 
    United States contributions to the annual budget of the Commission 
    for Labor Cooperation pursuant to Article 47 of the North American 
    Agreement on Labor Cooperation. Funds authorized to be appropriated 
    for such contributions by this paragraph are in addition to any 
    funds otherwise available for such contributions. Funds authorized 
    to be appropriated by this paragraph are authorized to be made 
    available until expended.
    (b) Definitions.--As used in this section--
        (1) the term ``Commission for Labor Cooperation'' means the 
    commission established by Part Three of the North American Agreement 
    on Labor Cooperation; and
        (2) the term ``North American Agreement on Labor Cooperation'' 
    means the North American Agreement on Labor Cooperation Between the 
    Government of the United States of America, the Government of 
    Canada, and the Government of the United Mexican States (signed at 
    Mexico City, Washington, and Ottawa on September 8, 9, 12, and 14, 
    1993).

SEC. 532. AGREEMENT ON ENVIRONMENTAL COOPERATION.

    (a) Commission for Environmental Cooperation.--
        (1) Membership.--The United States is authorized to participate 
    in the Commission for Environmental Cooperation in accordance with 
    the North American Agreement on Environmental Cooperation.
        (2) Contributions to budget.--There are authorized to be 
    appropriated to the President (or such agency as the President may 
    designate) $5,000,000 for each of fiscal years 1994 and 1995 for 
    United States contributions to the annual budget of the Commission 
    for Environmental Cooperation pursuant to Article 43 of the North 
    American Agreement on Environmental Cooperation. Funds authorized to 
    be appropriated for such contributions by this paragraph are in 
    addition to any funds otherwise available for such contributions. 
    Funds authorized to be appropriated by this paragraph are authorized 
    to be made available until expended.
    (b) Definitions.--As used in this section--
        (1) the term ``Commission for Environmental Cooperation'' means 
    the commission established by Part Three of the North American 
    Agreement on Environmental Cooperation; and
        (2) the term ``North American Agreement on Environmental 
    Cooperation'' means the North American Agreement on Environmental 
    Cooperation Between the Government of the United States of America, 
    the Government of Canada, and the Government of the United Mexican 
    States (signed at Mexico City, Washington, and Ottawa on September 
    8, 9, 12, and 14, 1993).
    SEC. 533. AGREEMENT ON BORDER ENVIRONMENT COOPERATION COMMISSION.
    (a) Border Environment Cooperation Commission.--
        (1) Membership.--The United States is authorized to participate 
    in the Border Environment Cooperation Commission in accordance with 
    the Border Environment Cooperation Agreement.
        (2) Contributions to the commission budget.--There are 
    authorized to be appropriated to the President (or such agency as 
    the President may designate) $5,000,000 for fiscal year 1994 and 
    each fiscal year thereafter for United States contributions to the 
    budget of the Border Environment Cooperation Commission pursuant to 
    section 7 of Article III of Chapter I of the Border Environment 
    Cooperation Agreement. Funds authorized to be appropriated for such 
    contributions by this paragraph are in addition to any funds 
    otherwise available for such contributions. Funds authorized to be 
    appropriated by this paragraph are authorized to be made available 
    until expended.
    (b) Civil Actions Involving the Commission.--For the purpose of any 
civil action which may be brought within the United States by or against 
the Border Environment Cooperation Commission in accordance with the 
Border Environment Cooperation Agreement (including an action brought to 
enforce an arbitral award against the Commission), the Commission shall 
be deemed to be an inhabitant of the Federal judicial district in which 
its principal office within the United States, or its agent appointed 
for the purpose of accepting service or notice of service, is located. 
Any such action to which the Commission is a party shall be deemed to 
arise under the laws of the United States, and the district courts of 
the United States (including the courts enumerated in section 460 of 
title 28, United States Code) shall have original jurisdiction of any 
such action. When the Commission is a defendant in any action in a State 
court, it may at any time before trial remove the action into the 
appropriate district court of the United States by following the 
procedure for removal provided in section 1446 of title 28, United 
States Code.
    (c) Definitions.--As used in this section--
        (1) the term ``Border Environment Cooperation Agreement'' means 
    the November 1993 Agreement Between the Government of the United 
    States of America and the Government of the United Mexican States 
    Concerning the Establishment of a Border Environment Cooperation 
    Commission and a North American Development Bank;
        (2) the terms ``Border Environment Cooperation Commission'' and 
    ``Commission'' mean the commission established pursuant to Chapter I 
    of the Border Environment Cooperation Agreement; and
        (3) the term ``United States'' means the United States, its 
    territories and possessions, and the Commonwealth of Puerto Rico.

     PART 2--NORTH AMERICAN DEVELOPMENT BANK AND RELATED PROVISIONS

SEC. 541. NORTH AMERICAN DEVELOPMENT BANK.

    (a) Acceptance of Membership.--The President is hereby authorized to 
accept membership for the United States in the North American 
Development Bank (hereafter in this part referred to as the ``Bank'') 
provided for in Chapter II of the Border Environment Cooperation 
Agreement (hereafter in this part referred to as the ``Cooperation 
Agreement'').
    (b) Subscription of Stock.--
        (1) Subscription authority.--
            (A) In general.--The Secretary of the Treasury may subscribe 
        on behalf of the United States up to 150,000 shares of the 
        capital stock of the Bank.
            (B) Effectiveness of subscription.--Except as provided in 
        paragraph (3), any such subscription shall be effective only to 
        such extent or in such amounts as are provided in advance in 
        appropriations Acts.
        (2) Limitations on authorization of appropriations.--For payment 
    by the Secretary of the Treasury of the subscription of the United 
    States for shares described in paragraph (1), there are authorized 
    to be appropriated $1,500,000,000 ($225,000,000 of which may be used 
    for paid-in capital and $1,275,000,000 of which may be used for 
    callable capital) without fiscal year limitation.
        (3) Funding; limitation on callable capital subscriptions.--
            (A) Funding.--For fiscal year 1995, the Secretary of the 
        Treasury shall pay to the Bank out of any sums in the Treasury 
        not otherwise appropriated the sum of $56,250,000 for the paid-
        in portion of the United States share of the capital stock of 
        the Bank, 10 percent of which may be transferred by the Bank to 
        the President pursuant to section 543 to pay for the cost of 
        direct and guaranteed Federal loans.
            (B) Limitation on callable capital subscriptions.--For 
        fiscal year 1995, the Secretary of the Treasury shall subscribe 
        to the callable capital portion of the United States share of 
        the capital stock of the Bank in an amount not to exceed 
        $318,750,000.
        (4) Disposition of net income distributed by the facility.--Any 
    payment made to the United States by the Bank as a distribution of 
    net income shall be covered into the Treasury as a miscellaneous 
    receipt.
    (c) Compensation of Board Members.--No person shall be entitled to 
receive any salary or other compensation from the Bank or the United 
States for services as a Board member.
    (d) Applicability of Bretton Woods Agreements Act.--The provisions 
of section 4 of the Bretton Woods Agreements Act shall apply with 
respect to the Bank to the same extent as with respect to the 
International Bank for Reconstruction and Development and the 
International Monetary Fund.
    (e) Restrictions.--Unless authorized by law, neither the President 
nor any person or agency shall, on behalf of the United States--
        (1) subscribe to additional shares of stock of the Bank;
        (2) vote for or agree to any amendment of the Cooperation 
    Agreement which increases the obligations of the United States, or 
    which changes the purpose or functions of the Bank; or
        (3) make a loan or provide other financing to the Bank.
    (f) Federal Reserve Banks as Depositories.--Any Federal Reserve bank 
that is requested to do so by the Bank shall act as its depository or as 
its fiscal agent, and the Board of Governors of the Federal Reserve 
System shall supervise and direct the carrying out of these functions by 
the Federal Reserve banks.
    (g) Jurisdiction of United States Courts and Enforcement of Arbitral 
Awards.--For the purpose of any civil action which may be brought within 
the United States, its territories or possessions, or the Commonwealth 
of Puerto Rico, by or against the Bank in accordance with the 
Cooperation Agreement, including an action brought to enforce an 
arbitral award against the Bank, the Bank shall be deemed to be an 
inhabitant of the Federal judicial district in which its principal 
office within the United States or its agency appointed for the purpose 
of accepting service or notice of service is located, and any such 
action to which the Bank shall be a party shall be deemed to arise under 
the laws of the United States, and the district courts of the United 
States, including the courts enumerated in section 460 of title 28, 
United States Code, shall have original jurisdiction of any such action. 
When the Bank is a defendant in any action in a State court, it may at 
any time before trial remove the action into the appropriate district 
court of the United States by following the procedure for removal 
provided in section 1446 of title 28, United States Code.
    (h) Exemption From Securities Laws for Certain Securities Issued by 
the Bank; Reports Required.--
        (1) Exemptions from limitations and restrictions on the power of 
    national banking associations to deal in and underwrite investment 
    securities of the bank.--The seventh sentence of the seventh 
    undesignated paragraph of section 5136 of the Revised Statutes of 
    the United States (12 U.S.C. 24), is amended by inserting ``the 
    North American Development Bank,'' after ``Inter-American 
    Development Bank,''.
        (2) Exemption from securities laws for certain securities issued 
    by the bank; reports required.--Any securities issued by the Bank 
    (including any guarantee by the Bank, whether or not limited in 
    scope) in connection with the raising of funds for inclusion in the 
    Bank's capital resources as defined in Section 4 of Article II of 
    Chapter II of the Cooperation Agreement, and any securities 
    guaranteed by the Bank as to both the principal and interest to 
    which the commitment in Section 3(d) of Article II of Chapter II of 
    the Cooperation Agreement is expressly applicable, shall be deemed 
    to be exempted securities within the meaning of section 3(a)(2) of 
    the Securities Act of 1933 (15 U.S.C. 77c), and section 3(a)(12) of 
    the Securities Exchange Act of 1934 (15 U.S.C. 78c). The Bank shall 
    file with the Securities and Exchange Commission such annual and 
    other reports with regard to such securities as the Commission shall 
    determine to be appropriate in view of the special character of the 
    Bank and its operations and necessary in the public interest or for 
    the protection of investors.
        (3) Authority of securities and exchange commission to suspend 
    exemption; reports to the congress.--The Securities and Exchange 
    Commission, acting in consultation with the National Advisory 
    Council on International Monetary and Financial Problems, is 
    authorized to suspend the provisions of paragraph (2) at any time as 
    to any or all securities issued or guaranteed by the Bank during the 
    period of such suspension. The Commission shall include in its 
    annual reports to Congress such information as it shall deem 
    advisable with regard to the operations and effect of this 
    subsection and in connection therewith shall include any views 
    submitted for such purpose by any association of dealers registered 
    with the Commission.

SEC. 542. STATUS, IMMUNITIES, AND PRIVILEGES.

    Article VIII of Chapter II of the Cooperation Agreement shall have 
full force and effect in the United States, its territories and 
possessions, and the Commonwealth of Puerto Rico, upon entry into force 
of the Cooperation Agreement.

SEC. 543. COMMUNITY ADJUSTMENT AND INVESTMENT PROGRAM.

    (a) The President.--(1) The President may enter into an agreement 
with the Bank that facilitates implementation by the President of a 
program for community adjustment and investment in support of the 
Agreement pursuant to chapter II of the Cooperation Agreement (hereafter 
in this section referred to as the ``community adjustment and investment 
program'').
    (2) The President may receive from the Bank 10 percent of the paid-
in capital actually paid to the Bank by the United States for the 
President to carry out, without further appropriations, through Federal 
agencies and their loan and loan guarantee programs, the community 
adjustment and investment program, pursuant to an agreement between the 
President and the Bank.
    (3) The President may select one or more Federal agencies that make 
loans or guarantee the repayment of loans to assist in carrying out the 
community adjustment and investment program, and may transfer the funds 
received from the Bank to such agency or agencies for the purpose of 
assisting in carrying out the community adjustment and investment 
program.
    (4)(A) Each Federal agency selected by the President to assist in 
carrying out the community adjustment and investment program shall use 
the funds transferred to it by the President from the Bank to pay for 
the costs of direct and guaranteed loans, as defined in section 502 of 
the Congressional Budget Act of 1974, and, as appropriate, other costs 
associated with such loans, all subject to the restrictions and 
limitations that apply to such agency's existing loan or loan guarantee 
program.
    (B) Funds transferred to an agency under subparagraph (A) shall be 
in addition to the amount of funds authorized in any appropriations Act 
to be expended by that agency for its loan or loan guarantee program.
    (5) The President shall--
        (A) establish guidelines for the loans and loan guarantees to be 
    made under the community adjustment and investment program;
        (B) endorse the grants made by the Bank for the community 
    adjustment and investment program, as provided in Article I, section 
    1(b), and Article III, section 11(a), of Chapter II of the 
    Cooperation Agreement; and
        (C) endorse any loans or guarantees made by the Bank for the 
    community adjustment and investment program, as provided in Article 
    I, section 1(b), and Article III, section 6 (a) and (c) of Chapter 
    II of the Cooperation Agreement.
    (b) Advisory Committee.--
        (1) Establishment.--The President shall establish an advisory 
    committee to be known as the Community Adjustment and Investment 
    Program Advisory Committee (in this section referred to as the 
    ``Advisory Committee'') in accordance with the provisions of the 
    Federal Advisory Committee Act.
        (2) Membership.--
            (A) In general.--The Advisory Committee shall consist of 9 
        members of the public, appointed by the President, who, 
        collectively, represent--
                (i) community groups whose constituencies include low-
            income families;
                (ii) any scientific, professional, business, nonprofit, 
            or public interest organization or association which is 
            neither affiliated with, nor under the direction of, a 
            government;
                (iii) for-profit business interests; and
                (iv) other appropriate entities with relevant expertise.
            (B) Representation.--Each of the categories described in 
        clauses (i) through (iv) of subparagraph (A) shall be 
        represented by no fewer than 1 and no more than 3 members of the 
        Advisory Committee.
        (3) Function.--It shall be the function of the Advisory 
    Committee--
            (A) to provide advice to the President regarding the 
        implementation of the community adjustment and investment 
        program, including advice on the guidelines to be established by 
        the President for the loans and loan guarantees to be made 
        pursuant to subsection (a)(4), advice on identifying the needs 
        for adjustment assistance and investment in support of the goals 
        and objectives of the Agreement, taking into account economic 
        and geographic considerations, and advice on such other matters 
        as may be requested by the President; and
            (B) to review on a regular basis the operation of the 
        community adjustment and investment program and provide the 
        President with the conclusions of its review.
        (4) Terms of members.--
            (A) In general.--Each member of the Advisory Committee shall 
        serve at the pleasure of the President.
            (B) Chairperson.--The President shall appoint a chairperson 
        from among the members of the Advisory Committee.
            (C) Meetings.--The Advisory Committee shall meet at least 
        annually and at such other times as requested by the President 
        or the chairperson. A majority of the members of the Advisory 
        Committee shall constitute a quorum.
            (D) Reimbursement for expenses.--The members of the Advisory 
        Committee may receive reimbursement for travel, per diem, and 
        other necessary expenses incurred in the performance of their 
        duties, in accordance with the Federal Advisory Committee Act.
            (E) Staff and facilities.--The Advisory Committee may 
        utilize the facilities and services of employees of any Federal 
        agency without cost to the Advisory Committee, and any such 
        agency is authorized to provide services as requested by the 
        Committee.
    (c) Ombudsman.--The President shall appoint an ombudsman to provide 
the public with an opportunity to participate in the carrying out of the 
community adjustment and investment program.
        (1) Function.--It shall be the function of the ombudsman--
            (A) to establish procedures for receiving comments from the 
        general public on the operation of the community adjustment and 
        investment program, to receive such comments, and to provide the 
        President with summaries of the public comments; and
            (B) to perform an independent inspection and programmatic 
        audit of the operation of the community adjustment and 
        investment program and to provide the President with the 
        conclusions of its investigation and audit.
        (2) Authorization of appropriations.--There are authorized to be 
    appropriated to the President, or such agency as the President may 
    designate, $25,000 for fiscal year 1995 and for each fiscal year 
    thereafter, for the costs of the ombudsman.
    (d) Reporting Requirement.--The President shall submit to the 
appropriate congressional committees an annual report on the community 
adjustment and investment program (if any) that is carried out pursuant 
to this section. Each report shall state the amount of the loans made or 
guaranteed during the 12-month period ending on the day before the date 
of the report.

SEC. 544. DEFINITION.

    For purposes of this part, the term ``Border Environment Cooperation 
Agreement'' (referred to in this part as the ``Cooperation Agreement'') 
means the November 1993 Agreement Between the Government of the United 
States of America and the Government of the United Mexican States 
Concerning the Establishment of a Border Environment Cooperation 
Commission and a North American Development Bank.
                     TITLE VI--CUSTOMS MODERNIZATION

SEC. 601. REFERENCE.

    Whenever in subtitle A, B, or C an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a part, section, subsection, 
or other provision, the reference shall be considered to be made a part, 
section, subsection, or other provision of the Tariff Act of 1930 (19 
U.S.C. 1202 et seq.).
             Subtitle A--Improvements in Customs Enforcement
    SEC. 611. PENALTIES FOR VIOLATIONS OF ARRIVAL, REPORTING, ENTRY, AND 
      CLEARANCE REQUIREMENTS.
    Section 436 (19 U.S.C. 1436) is amended--
        (1) by amending subsection (a)--
            (A) by striking out ``433'' in paragraph (1) and inserting 
        ``431, 433, or 434 of this Act or section 4197 of the Revised 
        Statutes of the United States (46 U.S.C. App. 91)'',
            (B) by amending paragraph (2) to read as follows:
        ``(2) to present or transmit, electronically or otherwise, any 
    forged, altered, or false document, paper, information, data or 
    manifest to the Customs Service under section 431(e), 433(d), or 434 
    of this Act or section 4197 of the Revised Statutes of the United 
    States (46 U.S.C. App. 91) without revealing the facts; or'', and
            (C) by amending paragraph (3) to read as follows:
        ``(3) to fail to make entry or to obtain clearance as required 
    by section 434 or 644 of this Act, section 4197 of the Revised 
    Statutes of the United States (46 U.S.C. App. 91), or section 1109 
    of the Federal Aviation Act of 1958 (49 U.S.C. App. 1509); or''; and
        (2) by striking out ``and entry'' in the section heading and 
    inserting ``entry, and clearance''.

SEC. 612. FAILURE TO DECLARE.

    Section 497(a) (19 U.S.C. 1497(a)) is amended--
        (1) by inserting ``or transmitted'' after ``made'' in paragraph 
    (1)(A); and
        (2) by amending paragraph (2)(A) to read as follows:
            ``(A) if the article is a controlled substance, either $500 
        or an amount equal to 1,000 percent of the value of the article, 
        whichever amount is greater; and''.
    SEC. 613. CUSTOMS TESTING LABORATORIES; DETENTION OF MERCHANDISE.
    (a) Amendment.--Section 499 (19 U.S.C. 1499) is amended to read as 
follows:

``SEC. 499. EXAMINATION OF MERCHANDISE.

    ``(a) Entry Examination.--
        ``(1) In general.--Imported merchandise that is required by law 
    or regulation to be inspected, examined, or appraised shall not be 
    delivered from customs custody (except under such bond or other 
    security as may be prescribed by the Secretary to assure compliance 
    with all applicable laws, regulations, and instructions which the 
    Secretary or the Customs Service is authorized to enforce) until the 
    merchandise has been inspected, appraised, or examined and is 
    reported by the Customs Service to have been truly and correctly 
    invoiced and found to comply with the requirements of the laws of 
    the United States.
        ``(2) Examination.--The Customs Service--
            ``(A) shall designate the packages or quantities of 
        merchandise covered by any invoice or entry which are to be 
        opened and examined for the purpose of appraisement or 
        otherwise;
            ``(B) shall order such packages or quantities to be sent to 
        such place as is designated by the Secretary by regulation for 
        such purpose;
            ``(C) may require such additional packages or quantities as 
        the Secretary considers necessary for such purpose; and
            ``(D) shall inspect a sufficient number of shipments, and 
        shall examine a sufficient number of entries, to ensure 
        compliance with the laws enforced by the Customs Service.
        ``(3) Unspecified articles.--If any package contains any article 
    not specified in the invoice or entry and, in the opinion of the 
    Customs Service, the article was omitted from the invoice or entry--
            ``(A) with fraudulent intent on the part of the seller, 
        shipper, owner, agent, importer of record, or entry filer, the 
        contents of the entire package in which such article is found 
        shall be subject to seizure; or
            ``(B) without fraudulent intent, the value of the article 
        shall be added to the entry and the duties, fees, and taxes 
        thereon paid accordingly.
        ``(4) Deficiency.--If a deficiency is found in quantity, weight, 
    or measure in the examination of any package, the person finding the 
    deficiency shall make a report thereof to the Customs Service. The 
    Customs Service shall make allowance for the deficiency in the 
    liquidation of duties.
        ``(5) Information required for release.--If an examination is 
    conducted, any information required for release shall be provided, 
    either electronically or in paper form, to the Customs Service at 
    the port of examination. The absence of such information does not 
    limit the authority of the Customs Service to conduct an 
    examination.
    ``(b) Testing Laboratories.--
        ``(1) Accreditation of private testing laboratories.--The 
    Customs Service shall establish and implement a procedure, under 
    regulations promulgated by the Secretary, for accrediting private 
    laboratories within the United States which may be used to perform 
    tests (that would otherwise be performed by Customs Service 
    laboratories) to establish the characteristics, quantities, or 
    composition of imported merchandise. Such regulations--
            ``(A) shall establish the conditions required for the 
        laboratories to receive and maintain accreditation for purposes 
        of this subsection;
            ``(B) shall establish the conditions regarding the 
        suspension and revocation of accreditation, which may include 
        the imposition of a monetary penalty not to exceed $100,000 and 
        such penalty is in addition to the recovery, from a gauger or 
        laboratory accredited under paragraph (1), of any loss of 
        revenue that may have occurred, but the Customs Service--
                ``(i) may seek to recover lost revenue only in cases 
            where the gauger or laboratory intentionally falsified the 
            analysis or gauging report in collusion with the importer; 
            and
                ``(ii) shall neither assess penalties nor seek to 
            recover lost revenue because of a good faith difference of 
            professional opinion; and
            ``(C) may provide for the imposition of a reasonable charge 
        for accreditation and periodic reaccreditation.
    The collection of any charge for accreditation and reaccreditation 
    under this section is not prohibited by section 13031(e)(6) of the 
    Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
    58c(e)(6)).
        ``(2) Appeal of adverse accreditation decisions.--A laboratory 
    applying for accreditation, or that is accredited, under this 
    section may contest any decision or order of the Customs Service 
    denying, suspending, or revoking accreditation, or imposing a 
    monetary penalty, by commencing an action in accordance with chapter 
    169 of title 28, United States Code, in the Court of International 
    Trade within 60 days after issuance of the decision or order.
        ``(3) Testing by accredited laboratories.--When requested by an 
    importer of record of merchandise, the Customs Service shall 
    authorize the release to the importer of a representative sample of 
    the merchandise for testing, at the expense of the importer, by a 
    laboratory accredited under paragraph (1). The testing results from 
    a laboratory accredited under paragraph (1) that are submitted by an 
    importer of record with respect to merchandise in an entry shall, in 
    the absence of testing results obtained from a Customs Service 
    laboratory, be accepted by the Customs Service if the importer of 
    record certifies that the sample tested was taken from the 
    merchandise in the entry. Nothing in this subsection shall be 
    construed to limit in any way or preclude the authority of the 
    Customs Service to test or analyze any sample or merchandise 
    independently.
        ``(4) Availability of testing procedure, methodologies, and 
    information.--Testing procedures and methodologies used by the 
    Customs Service, and information resulting from any testing 
    conducted by the Customs Service, shall be made available as 
    follows:
            ``(A) Testing procedures and methodologies shall be made 
        available upon request to any person unless the procedures or 
        methodologies are--
                ``(i) proprietary to the holder of a copyright or patent 
            related to such procedures or methodologies, or
                ``(ii) developed by the Customs Service for enforcement 
            purposes.
            ``(B) Information resulting from testing shall be made 
        available upon request to the importer of record and any agent 
        thereof unless the information reveals information which is--
                ``(i) proprietary to the holder of a copyright or 
            patent; or
                ``(ii) developed by the Customs Service for enforcement 
            purposes.
        ``(5) Miscellaneous provisions.--For purposes of this 
    subsection--
            ``(A) any reference to a private laboratory includes a 
        reference to a private gauger; and
            ``(B) accreditation of private laboratories extends only to 
        the performance of functions by such laboratories that are 
        within the scope of those responsibilities for determinations of 
        the elements relating to admissibility, quantity, composition, 
        or characteristics of imported merchandise that are vested in, 
        or delegated to, the Customs Service.
    ``(c) Detentions.--Except in the case of merchandise with respect to 
which the determination of admissibility is vested in an agency other 
than the Customs Service, the following apply:
        ``(1) In general.--Within the 5-day period (excluding weekends 
    and holidays) following the date on which merchandise is presented 
    for customs examination, the Customs Service shall decide whether to 
    release or detain the merchandise. Merchandise which is not released 
    within such 5-day period shall be considered to be detained 
    merchandise.
        ``(2) Notice of detention.--The Customs Service shall issue a 
    notice to the importer or other party having an interest in detained 
    merchandise no later than 5 days, excluding weekends and holidays, 
    after the decision to detain the merchandise is made. The notice 
    shall advise the importer or other interested party of--
            ``(A) the initiation of the detention;
            ``(B) the specific reason for the detention;
            ``(C) the anticipated length of the detention;
            ``(D) the nature of the tests or inquiries to be conducted; 
        and
            ``(E) the nature of any information which, if supplied to 
        the Customs Service, may accelerate the disposition of the 
        detention.
        ``(3) Testing results.--Upon request by the importer or other 
    party having an interest in detained merchandise, the Customs 
    Service shall provide the party with copies of the results of any 
    testing conducted by the Customs Service on the merchandise and a 
    description of the testing procedures and methodologies (unless such 
    procedures or methodologies are proprietary to the holder of a 
    copyright or patent or were developed by the Customs Service for 
    enforcement purposes). The results and test description shall be in 
    sufficient detail to permit the duplication and analysis of the 
    testing and the results.
        ``(4) Seizure and forfeiture.--If otherwise provided by law, 
    detained merchandise may be seized and forfeited.
        ``(5) Effect of failure to make determination.--
            ``(A) The failure by the Customs Service to make a final 
        determination with respect to the admissibility of detained 
        merchandise within 30 days after the merchandise has been 
        presented for customs examination, or such longer period if 
        specifically authorized by law, shall be treated as a decision 
        of the Customs Service to exclude the merchandise for purposes 
        of section 514(a)(4).
            ``(B) For purposes of section 1581 of title 28, United 
        States Code, a protest against the decision to exclude the 
        merchandise which has not been allowed or denied in whole or in 
        part before the 30th day after the day on which the protest was 
        filed shall be treated as having been denied on such 30th day.
            ``(C) Notwithstanding section 2639 of title 28, United 
        States Code, once an action respecting a detention is commenced, 
        unless the Customs Service establishes by a preponderance of the 
        evidence that an admissibility decision has not been reached for 
        good cause, the court shall grant the appropriate relief which 
        may include, but is not limited to, an order to cancel the 
        detention and release the merchandise.''.
    (b) Existing Laboratories.--Accreditation under section 499(b) of 
the Tariff Act of 1930 (as added by subsection (a)) is not required for 
any private laboratory (including any gauger) that was accredited or 
approved by the Customs Service as of the day before the date of the 
enactment of this Act; but any such laboratory is subject to 
reaccreditation under the provisions of such section and the regulations 
promulgated thereunder.

SEC. 614. RECORDKEEPING.

    Section 508 (19 U.S.C. 1508) is amended--
        (1) by amending subsection (a) to read as follows:
    ``(a) Requirements.--Any--
        ``(1) owner, importer, consignee, importer of record, entry 
    filer, or other party who--
            ``(A) imports merchandise into the customs territory of the 
        United States, files a drawback claim, or transports or stores 
        merchandise carried or held under bond, or
            ``(B) knowingly causes the importation or transportation or 
        storage of merchandise carried or held under bond into or from 
        the customs territory of the United States;
        ``(2) agent of any party described in paragraph (1); or
        ``(3) person whose activities require the filing of a 
    declaration or entry, or both;
shall make, keep, and render for examination and inspection records 
(which for purposes of this section include, but are not limited to, 
statements, declarations, documents and electronically generated or 
machine readable data) which--
        ``(A) pertain to any such activity, or to the information 
    contained in the records required by this Act in connection with any 
    such activity; and
        ``(B) are normally kept in the ordinary course of business.''; 
    and
        (2) by amending subsection (c) to read as follows:
    ``(c) Period of Time.--The records required by subsections (a) and 
(b) shall be kept for such period of time, not to exceed 5 years from 
the date of entry or exportation, as appropriate, as the Secretary shall 
prescribe; except that records for any drawback claim shall be kept 
until the 3rd anniversary of the date of payment of the claim.''.

SEC. 615. EXAMINATION OF BOOKS AND WITNESSES.

    Section 509 (19 U.S.C. 1509) is amended as follows:
        (1) Subsection (a) is amended--
            (A) by striking out ``and taxes'' wherever it appears and 
        inserting ``, fees and taxes'';
            (B) by amending paragraph (1) to read as follows:
        ``(1) examine, or cause to be examined, upon reasonable notice, 
    any record (which for purposes of this section, includes, but is not 
    limited to, any statement, declaration, document, or electronically 
    generated or machine readable data) described in the notice with 
    reasonable specificity, which may be relevant to such investigation 
    or inquiry, except that--
            ``(A) if such record is required by law or regulation for 
        the entry of the merchandise (whether or not the Customs Service 
        required its presentation at the time of entry) it shall be 
        provided to the Customs Service within a reasonable time after 
        demand for its production is made, taking into consideration the 
        number, type, and age of the item demanded; and
            ``(B) if a person of whom demand is made under subparagraph 
        (A) fails to comply with the demand, the person may be subject 
        to penalty under subsection (g);'';
            (C) by amending that part of paragraph (2) that precedes 
        subparagraph (D) to read as follows:
        ``(2) summon, upon reasonable notice--
            ``(A) the person who--
                ``(i) imported, or knowingly caused to be imported, 
            merchandise into the customs territory of the United States,
                ``(ii) exported merchandise, or knowingly caused 
            merchandise to be exported, to Canada,
                ``(iii) transported or stored merchandise that was or is 
            carried or held under customs bond, or knowingly caused such 
            transportation or storage, or
                ``(iv) filed a declaration, entry, or drawback claim 
            with the Customs Service;
            ``(B) any officer, employee, or agent of any person 
        described in subparagraph (A);
            ``(C) any person having possession, custody or care of 
        records relating to the importation or other activity described 
        in subparagraph (A); or''; and
            (D) by striking out the comma at the end of subparagraph (D) 
        and inserting a semicolon.
        (2) Subsections (b) and (c) are redesignated as subsections (c) 
    and (d), respectively.
        (3) The following new subsection is inserted after subsection 
    (a):
    ``(b) Regulatory Audit Procedures.--
        ``(1) In conducting a regulatory audit under this section (which 
    does not include a quantity verification for a customs bonded 
    warehouse or general purpose foreign trade zone), the Customs 
    Service auditor shall provide the person being audited, in advance 
    of the audit, with a reasonable estimate of the time to be required 
    for the audit. If in the course of an audit it becomes apparent that 
    additional time will be required, the Customs Service auditor shall 
    immediately provide a further estimate of such additional time.
        ``(2) Before commencing an audit, the Customs Service auditor 
    shall inform the party to be audited of his right to an entry 
    conference at which time the purpose will be explained and an 
    estimated termination date set. Upon completion of on-site audit 
    activities, the Customs Service auditor shall schedule a closing 
    conference to explain the preliminary results of the audit.
        ``(3) Except as provided in paragraph (5), if the estimated or 
    actual termination date for an audit passes without the Customs 
    Service auditor providing a closing conference to explain the 
    results of the audit, the person being audited may petition in 
    writing for such a conference to the appropriate regional 
    commissioner, who, upon receipt of such a request, shall provide for 
    such a conference to be held within 15 days after the date of 
    receipt.
        ``(4) Except as provided in paragraph (5), the Customs Service 
    auditor shall complete the formal written audit report within 90 
    days following the closing conference unless the appropriate 
    regional commissioner provides written notice to the person being 
    audited of the reason for any delay and the anticipated completion 
    date. After application of any exemption contained in section 552 of 
    title 5, United States Code, a copy of the formal written audit 
    report shall be sent to the person audited no later than 30 days 
    following completion of the report.
        ``(5) Paragraphs (3) and (4) shall not apply after the Customs 
    Service commences a formal investigation with respect to the issue 
    involved.''.
        (4) Subsection (d) (as redesignated by paragraph (2)) is 
    amended--
            (A) by striking out ``statements, declarations, or 
        documents'' in paragraph (1)(A) and inserting ``those'';
            (B) by inserting ``, unless such customhouse broker is the 
        importer of record on an entry'' after ``broker'' in paragraph 
        (1)(C)(i);
            (C) by striking out ``import'' in each of paragraphs (2)(B) 
        and (4)(B);
            (D) by inserting ``described in section 508'' after 
        ``transactions'' in each of paragraphs (2)(B) and (4)(B); and
            (E) by inserting ``, fees,'' after ``duties'' in paragraph 
        (4)(A).
        (5) The following new subsections are added at the end thereof:
    ``(e) List of Records and Information.--The Customs Service shall 
identify and publish a list of the records or entry information that is 
required to be maintained and produced under subsection (a)(1)(A).
    ``(f) Recordkeeping Compliance Program.--
        ``(1) In general.--After consultation with the importing 
    community, the Customs Service shall by regulation establish a 
    recordkeeping compliance program which the parties listed in section 
    508(a) may participate in after being certified by the Customs 
    Service under paragraph (2). Participation in the recordkeeping 
    compliance program by recordkeepers is voluntary.
        ``(2) Certification.--A recordkeeper may be certified as a 
    participant in the recordkeeping compliance program after meeting 
    the general recordkeeping requirements established under the program 
    or after negotiating an alternative program suited to the needs of 
    the recordkeeper and the Customs Service. Certification requirements 
    shall take into account the size and nature of the importing 
    business and the volume of imports. In order to be certified, the 
    recordkeeper must be able to demonstrate that it--
            ``(A) understands the legal requirements for recordkeeping, 
        including the nature of the records required to be maintained 
        and produced and the time periods involved;
            ``(B) has in place procedures to explain the recordkeeping 
        requirements to those employees who are involved in the 
        preparation, maintenance, and production of required records;
            ``(C) has in place procedures regarding the preparation and 
        maintenance of required records, and the production of such 
        records to the Customs Service;
            ``(D) has designated a dependable individual or individuals 
        to be responsible for recordkeeping compliance under the program 
        and whose duties include maintaining familiarity with the 
        recordkeeping requirements of the Customs Service;
            ``(E) has a record maintenance procedure approved by the 
        Customs Service for original records, or, if approved by the 
        Customs Service, for alternative records or recordkeeping 
        formats other than the original records; and
            ``(F) has procedures for notifying the Customs Service of 
        occurrences of variances to, and violations of, the requirements 
        of the recordkeeping compliance program or the negotiated 
        alternative programs, and for taking corrective action when 
        notified by the Customs Service of violations or problems 
        regarding such program.
    ``(g) Penalties.--
        ``(1) Definition.--For purposes of this subsection, the term 
    `information' means any record, statement, declaration, document, or 
    electronically stored or transmitted information or data referred to 
    in subsection (a)(1)(A).
        ``(2) Effects of failure to comply with demand.--Except as 
    provided in paragraph (4), if a person fails to comply with a lawful 
    demand for information under subsection (a)(1)(A) the following 
    provisions apply:
            ``(A) If the failure to comply is a result of the willful 
        failure of the person to maintain, store, or retrieve the 
        demanded information, such person shall be subject to a penalty, 
        for each release of merchandise, not to exceed $100,000, or an 
        amount equal to 75 percent of the appraised value of the 
        merchandise, whichever amount is less.
            ``(B) If the failure to comply is a result of the negligence 
        of the person in maintaining, storing, or retrieving the 
        demanded information, such person shall be subject to a penalty, 
        for each release of merchandise, not to exceed $10,000, or an 
        amount equal to 40 percent of the appraised value of the 
        merchandise, whichever amount is less.
            ``(C) In addition to any penalty imposed under subparagraph 
        (A) or (B) regarding demanded information, if such information 
        related to the eligibility of merchandise for a column 1 special 
        rate of duty under title I, the entry of such merchandise--
                ``(i) if unliquidated, shall be liquidated at the 
            applicable column 1 general rate of duty; or
                ``(ii) if liquidated within the 2-year period preceding 
            the date of the demand, shall be reliquidated, 
            notwithstanding the time limitation in section 514 or 520, 
            at the applicable column 1 general rate of duty;
        except that any liquidation or reliquidation under clause (i) or 
        (ii) shall be at the applicable column 2 rate of duty if the 
        Customs Service demonstrates that the merchandise should be 
        dutiable at such rate.
        ``(3) Avoidance of penalty.--No penalty may be assessed under 
    this subsection if the person can show--
            ``(A) that the loss of the demanded information was the 
        result of an act of God or other natural casualty or disaster 
        beyond the fault of such person or an agent of the person;
            ``(B) on the basis of other evidence satisfactory to the 
        Customs Service, that the demand was substantially complied 
        with; or
            ``(C) the information demanded was presented to and retained 
        by the Customs Service at the time of entry or submitted in 
        response to an earlier demand.
        ``(4) Penalties not exclusive.--Any penalty imposed under this 
    subsection shall be in addition to any other penalty provided by law 
    except for--
            ``(A) a penalty imposed under section 592 for a material 
        omission of the demanded information, or
            ``(B) disciplinary action taken under section 641.
        ``(5) Remission or mitigation.--A penalty imposed under this 
    section may be remitted or mitigated under section 618.
        ``(6) Customs summons.--Nothing in this subsection shall limit 
    or preclude the Customs Service from issuing, or seeking the 
    enforcement of, a customs summons.
        ``(7) Alternatives to penalties.--
            ``(A) In general.--When a recordkeeper who--
                ``(i) has been certified as a participant in the 
            recordkeeping compliance program under subsection (f); and
                ``(ii) is generally in compliance with the appropriate 
            procedures and requirements of the program;
        does not produce a demanded record or information for a specific 
        release or provide the information by acceptable alternative 
        means, the Customs Service, in the absence of willfulness or 
        repeated violations, shall issue a written notice of the 
        violation to the recordkeeper in lieu of a monetary penalty. 
        Repeated violations by the recordkeeper may result in the 
        issuance of penalties and removal of certification under the 
        program until corrective action, satisfactory to the Customs 
        Service, is taken.
            ``(B) Contents of notice.--A notice of violation issued 
        under subparagraph (A) shall--
                ``(i) state that the recordkeeper has violated the 
            recordkeeping requirements;
                ``(ii) indicate the record or information which was 
            demanded; and
                ``(iii) warn the recordkeeper that future failures to 
            produce demanded records or information may result in the 
            imposition of monetary penalties.
            ``(C) Response to notice.--Within a reasonable time after 
        receiving written notice under subparagraph (A), the 
        recordkeeper shall notify the Customs Service of the steps it 
        has taken to prevent a recurrence of the violation.
            ``(D) Regulations.--The Secretary shall promulgate 
        regulations to implement this paragraph. Such regulations may 
        specify the time periods for compliance with a demand for 
        information and provide guidelines which define repeated 
        violations for purposes of this paragraph. Any penalty issued 
        for a recordkeeping violation shall take into account the degree 
        of compliance compared to the total number of importations, the 
        nature of the demanded records and the recordkeeper's 
        cooperation.''.

SEC. 616. JUDICIAL ENFORCEMENT.

    The second sentence of section 510(a) (19 U.S.C. 1510(a)) is amended 
by inserting ``and such court may assess a monetary penalty'' after ``as 
a contempt thereof''.

SEC. 617. REVIEW OF PROTESTS.

    Section 515 (19 U.S.C. 1515) is amended by inserting at the end the 
following new subsections:
    ``(c) If a protesting party believes that an application for further 
review was erroneously or improperly denied or was denied without 
authority for such action, it may file with the Commissioner of Customs 
a written request that the denial of the application for further review 
be set aside. Such request must be filed within 60 days after the date 
of the notice of the denial. The Commissioner of Customs may review such 
request and, based solely on the information before the Customs Service 
at the time the application for further review was denied, may set aside 
the denial of the application for further review and void the denial of 
protest, if appropriate. If the Commissioner of Customs fails to act 
within 60 days after the date of the request, the request shall be 
considered denied. All denials of protests are effective from the date 
of original denial for purposes of section 2636 of title 28, United 
States Code. If an action is commenced in the Court of International 
Trade that arises out of a protest or an application for further review, 
all administrative action pertaining to such protest or application 
shall terminate and any administrative action taken subsequent to the 
commencement of the action is null and void.
    ``(d) If a protest is timely and properly filed, but is denied 
contrary to proper instructions, the Customs Service may on its own 
initiative, or pursuant to a written request by the protesting party 
filed with the appropriate district director within 90 days after the 
date of the protest denial, void the denial of the protest.''.
    SEC. 618. REPEAL OF PROVISION RELATING TO RELIQUIDATION ON ACCOUNT 
      OF FRAUD.
    Section 521 (19 U.S.C. 1521) is repealed.

SEC. 619. PENALTIES RELATING TO MANIFESTS.

    Section 584 (19 U.S.C. 1584) is amended--
        (1) by amending subsection (a)--
            (A) by striking out ``appropriate customs officer'' wherever 
        it appears and inserting ``Customs Service'',
            (B) by striking out ``officer demanding the same'' in 
        paragraph (1) and inserting ``officer (whether of the Customs 
        Service or the Coast Guard) demanding the same'', and
            (C) by inserting ``(electronically or otherwise)'' after 
        ``submission'' in the last sentence of paragraph (1); and
        (2) by amending subsection (b)--
            (A) by striking out ``the appropriate customs officer'', 
        ``he'' (except in paragraph (1)(F)), and ``such officer'' 
        wherever they appear and inserting ``the Customs Service'',
            (B) by striking out ``written'' wherever it appears (other 
        than paragraph (1)(F)),
            (C) by inserting ``or electronically transmit'' after 
        ``issue'' wherever it appears, and
            (D) by striking out ``his intention'' in the first sentence 
        of paragraph (1) and inserting ``intent''.

SEC. 620. UNLAWFUL UNLADING OR TRANSSHIPMENT.

    Section 586 (19 U.S.C. 1586) is amended--
        (1) by inserting ``, or of a hovering vessel which has received 
    or delivered merchandise while outside the territorial sea,'' after 
    ``from a foreign port or place'' wherever it appears; and
        (2) by amending subsection (f)--
            (A) by striking out ``the appropriate customs officer of 
        the'' and ``the appropriate customs officer within the'' and 
        inserting ``the Customs Service at the''; and
            (B) by striking out ``the appropriate customs officer is'' 
        and inserting ``the Customs Service is''.
    SEC. 621. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGLIGENCE; 
      PRIOR DISCLOSURE.
    Section 592 (19 U.S.C. 1592) is amended--
        (1) by inserting ``or electronically transmitted data or 
    information'' after ``document'' in subsection (a)(1)(A)(i);
        (2) by inserting ``The mere nonintentional repetition by an 
    electronic system of an initial clerical error does not constitute a 
    pattern of negligent conduct.'' at the end of subsection (a)(2);
        (3) by amending subsection (b)--
            (A) by amending the first sentence of paragraph (1)(A)--
                (i) by striking out ``the appropriate customs officer'' 
            and inserting ``the Customs Service'',
                (ii) by striking out ``he'' and inserting ``it'', and
                (iii) by striking out ``his'' and inserting ``its'', and
            (B) by amending paragraph (2)--
                (i) by striking out ``the appropriate customs officer'' 
            wherever it appears and inserting ``the Customs Service'',
                (ii) by striking out ``such officer'' wherever it 
            appears and inserting ``the Customs Service'', and
                (iii) by striking out ``he'' wherever it appears and 
            inserting ``it'';
        (4) by amending subsection (c)(4)--
            (A) by striking ``time of disclosure or within thirty days, 
        or such longer period as the appropriate customs officer may 
        provide, after notice by the appropriate customs officer of 
        his'' in subparagraph (A)(i) and by striking out ``time of 
        disclosure in 30 days, or such longer period as the appropriate 
        customs officer may provide, after notice by the appropriate 
        customs officer of his'' in subparagraph (B), and inserting in 
        each place ``time of disclosure, or within 30 days (or such 
        longer period as the Customs Service may provide) after notice 
        by the Customs Service of its''; and
            (B) by inserting after the last sentence the following: 
        ``For purposes of this section, a formal investigation of a 
        violation is considered to be commenced with regard to the 
        disclosing party and the disclosed information on the date 
        recorded in writing by the Customs Service as the date on which 
        facts and circumstances were discovered or information was 
        received which caused the Customs Service to believe that a 
        possibility of a violation of subsection (a) existed.''; and
        (5) by amending subsection (d)--
            (A) by striking out ``the appropriate customs officer'' and 
        inserting ``the Customs Service'',
            (B) by striking out ``duties'' wherever it appears and 
        inserting ``duties, taxes, or fees'', and
            (C) by inserting ``, Taxes or Fees'' after ``Duties'' in the 
        sideheading.

SEC. 622. PENALTIES FOR FALSE DRAWBACK CLAIMS.

    (a) Amendment.--Part V of title IV is amended by inserting after 
section 593 the following new section:

``SEC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS.

    ``(a) Prohibition.--
        ``(1) General rule.--No person, by fraud, or negligence--
            ``(A) may seek, induce or affect, or attempt to seek, 
        induce, or affect, the payment or credit to that person or 
        others of any drawback claim by means of--
                ``(i) any document, written or oral statement, or 
            electronically transmitted data or information, or act which 
            is material and false, or
                ``(ii) any omission which is material; or
            ``(B) may aid or abet any other person to violate 
        subparagraph (A).
        ``(2) Exception.--Clerical errors or mistakes of fact are not 
    violations of paragraph (1) unless they are part of a pattern of 
    negligent conduct. The mere nonintentional repetition by an 
    electronic system of an initial clerical error does not constitute a 
    pattern of negligent conduct.
    ``(b) Procedures.--
        ``(1) Prepenalty notice.--
            ``(A) In general.--If the Customs Service has reasonable 
        cause to believe that there has been a violation of subsection 
        (a) and determines that further proceedings are warranted, the 
        Customs Service shall issue to the person concerned a written 
        notice of intent to issue a claim for a monetary penalty. Such 
        notice shall--
                ``(i) identify the drawback claim;
                ``(ii) set forth the details relating to the seeking, 
            inducing, or affecting, or the attempted seeking, inducing, 
            or affecting, or the aiding or procuring of, the drawback 
            claim;
                ``(iii) specify all laws and regulations allegedly 
            violated;
                ``(iv) disclose all the material facts which establish 
            the alleged violation;
                ``(v) state whether the alleged violation occurred as a 
            result of fraud or negligence;
                ``(vi) state the estimated actual or potential loss of 
            revenue due to the drawback claim, and, taking into account 
            all circumstances, the amount of the proposed monetary 
            penalty; and
                ``(vii) inform such person that he shall have a 
            reasonable opportunity to make representations, both oral 
            and written, as to why a claim for a monetary penalty should 
            not be issued in the amount stated.
            ``(B) Exceptions.--The Customs Service may not issue a 
        prepenalty notice if the amount of the penalty in the penalty 
        claim issued under paragraph (2) is $1,000 or less. In such 
        cases, the Customs Service may proceed directly with a penalty 
        claim.
            ``(C) Prior approval.--No prepenalty notice in which the 
        alleged violation occurred as a result of fraud shall be issued 
        without the prior approval of Customs Headquarters.
        ``(2) Penalty claim.--After considering representations, if any, 
    made by the person concerned pursuant to the notice issued under 
    paragraph (1), the Customs Service shall determine whether any 
    violation of subsection (a), as alleged in the notice, has occurred. 
    If the Customs Service determines that there was no violation, the 
    Customs Service shall promptly issue a written statement of the 
    determination to the person to whom the notice was sent. If the 
    Customs Service determines that there was a violation, Customs shall 
    issue a written penalty claim to such person. The written penalty 
    claim shall specify all changes in the information provided under 
    clauses (i) through (vii) of paragraph (1)(A). Such person shall 
    have a reasonable opportunity under section 618 to make 
    representations, both oral and written, seeking remission or 
    mitigation of the monetary penalty. At the conclusion of any 
    proceeding under section 618, the Customs Service shall provide to 
    the person concerned a written statement which sets forth the final 
    determination, and the findings of fact and conclusions of law on 
    which such determination is based.
    ``(c) Maximum Penalties.--
        ``(1) Fraud.--A fraudulent violation of subsection (a) of this 
    section is punishable by a civil penalty in an amount not to exceed 
    3 times the actual or potential loss of revenue.
        ``(2) Negligence.--
            ``(A) In general.--A negligent violation of subsection (a) 
        is punishable by a civil penalty in an amount not to exceed 20 
        percent of the actual or potential loss of revenue for the 1st 
        violation.
            ``(B) Repetitive violations.--If the Customs Service 
        determines that a repeat negligent violation occurs relating to 
        the same issue, the penalty amount for the 2d violation shall be 
        in an amount not to exceed 50 percent of the total actual or 
        potential loss of revenue. The penalty amount for each 
        succeeding repetitive negligent violation shall be in an amount 
        not to exceed the actual or potential loss of revenue. If the 
        same party commits a nonrepetitive violation, that violation 
        shall be subject to a penalty not to exceed 20 percent of the 
        actual or potential loss of revenue.
        ``(3) Prior disclosure.--
            ``(A) In general.--Subject to subparagraph (B), if the 
        person concerned discloses the circumstances of a violation of 
        subsection (a) before, or without knowledge of the commencement 
        of, a formal investigation of such violation, the monetary 
        penalty assessed under this subsection may not exceed--
                ``(i) if the violation resulted from fraud, an amount 
            equal to the actual or potential revenue of which the United 
            States is or may be deprived as a result of overpayment of 
            the claim; or
                ``(ii) if the violation resulted from negligence, an 
            amount equal to the interest computed on the basis of the 
            prevailing rate of interest applied under section 6621 of 
            the Internal Revenue Code of 1986 on the amount of actual 
            revenue of which the United States is or may be deprived 
            during the period that--

                    ``(I) begins on the date of the overpayment of the 
                claim; and
                    ``(II) ends on the date on which the person 
                concerned tenders the amount of the overpayment.

            ``(B) Condition affecting penalty limitations.--The 
        limitations in subparagraph (A) on the amount of the monetary 
        penalty to be assessed under subsection (c) apply only if the 
        person concerned tenders the amount of the overpayment made on 
        the claim at the time of disclosure, or within 30 days (or such 
        longer period as the Customs Service may provide), after notice 
        by the Customs Service of its calculation of the amount of the 
        overpayment.
            ``(C) Burden of proof.--The person asserting lack of 
        knowledge of the commencement of a formal investigation has the 
        burden of proof in establishing such lack of knowledge.
        ``(4) Commencement of investigation.--For purposes of this 
    section, a formal investigation of a violation is considered to be 
    commenced with regard to the disclosing party and the disclosed 
    information on the date recorded in writing by the Customs Service 
    as the date on which facts and circumstances were discovered or 
    information was received which caused the Customs Service to believe 
    that a possibility of a violation of subsection (a) existed.
        ``(5) Exclusivity.--Penalty claims under this section shall be 
    the exclusive civil remedy for any drawback related violation of 
    subsection (a).
    ``(d) Deprivation of Lawful Revenue.--Notwithstanding section 514, 
if the United States has been deprived of lawful duties and taxes 
resulting from a violation of subsection (a), the Customs Service shall 
require that such duties and taxes be restored whether or not a monetary 
penalty is assessed.
    ``(e) Drawback Compliance Program.--
        ``(1) In general.--After consultation with the drawback trade 
    community, the Customs Service shall establish a drawback compliance 
    program in which claimants and other parties in interest may 
    participate after being certified by the Customs Service under 
    paragraph (2). Participation in the drawback compliance program is 
    voluntary.
        ``(2) Certification.--A party may be certified as a participant 
    in the drawback compliance program after meeting the general 
    requirements established under the program or after negotiating an 
    alternative program suited to the needs of the party and the Customs 
    Service. Certification requirements shall take into account the size 
    and nature of the party's drawback program and the volume of claims. 
    In order to be certified, the participant must be able to 
    demonstrate that it--
            ``(A) understands the legal requirements for filing claims, 
        including the nature of the records required to be maintained 
        and produced and the time periods involved;
            ``(B) has in place procedures to explain the Customs Service 
        requirements to those employees that are involved in the 
        preparation of claims, and the maintenance and production of 
        required records;
            ``(C) has in place procedures regarding the preparation of 
        claims and maintenance of required records, and the production 
        of such records to the Customs Service;
            ``(D) has designated a dependable individual or individuals 
        to be responsible for compliance under the program and whose 
        duties include maintaining familiarity with the drawback 
        requirements of the Customs Service;
            ``(E) has a record maintenance procedure approved by the 
        Customs Service for original records, or, if approved by the 
        Customs Service, for alternate records or recordkeeping formats 
        other than the original records; and
            ``(F) has procedures for notifying the Customs Service of 
        variances to, and violations of, the requirements of the 
        drawback compliance program or any negotiated alternative 
        programs, and for taking corrective action when notified by the 
        Customs Service for violations or problems regarding such 
        program.
    ``(f) Alternatives to Penalties.--
        ``(1) In general.--When a party that--
            ``(A) has been certified as a participant in the drawback 
        compliance program under subsection (e); and
            ``(B) is generally in compliance with the appropriate 
        procedures and requirements of the program;
    commits a violation of subsection (a), the Customs Service, shall, 
    in the absence of fraud or repeated violations, and in lieu of a 
    monetary penalty, issue a written notice of the violation to the 
    party. Repeated violations by a party may result in the issuance of 
    penalties and removal of certification under the program until 
    corrective action, satisfactory to the Customs Service, is taken.
        ``(2) Contents of notice.--A notice of violation issued under 
    paragraph (1) shall--
            ``(A) state that the party has violated subsection (a);
            ``(B) explain the nature of the violation; and
            ``(C) warn the party that future violations of subsection 
        (a) may result in the imposition of monetary penalties.
        ``(3) Response to notice.--Within a reasonable time after 
    receiving written notice under paragraph (1), the party shall notify 
    the Customs Service of the steps it has taken to prevent a 
    recurrence of the violation.
    ``(g) Repetitive Violations.--
        ``(1) A party who has been issued a written notice under 
    subsection (f)(1) and subsequently commits a repeat negligent 
    violation involving the same issue is subject to the following 
    monetary penalties:
            ``(A) 2d violation.--An amount not to exceed 20 percent of 
        the loss of revenue.
            ``(B) 3rd violation.--An amount not to exceed 50 percent of 
        the loss of revenue.
            ``(C) 4th and subsequent violations.--An amount not to 
        exceed 100 percent of the loss of revenue.
        ``(2) If a party that has been certified as a participant in the 
    drawback compliance program under subsection (e) commits an alleged 
    violation which was not repetitive, the party shall be issued a 
    `warning letter', and, for any subsequent violation, shall be 
    subject to the same maximum penalty amounts stated in paragraph (1).
    ``(h) Regulation.--The Secretary shall promulgate regulations and 
guidelines to implement this section. Such regulations shall specify 
that for purposes of subsection (g), a repeat negligent violation 
involving the same issue shall be treated as a repetitive violation for 
a maximum period of 3 years.
    ``(i) Court of International Trade Proceedings.--Notwithstanding any 
other provision of law, in any proceeding commenced by the United States 
in the Court of International Trade for the recovery of any monetary 
penalty claimed under this section--
        ``(1) all issues, including the amount of the penalty, shall be 
    tried de novo;
        ``(2) if the monetary penalty is based on fraud, the United 
    States shall have the burden of proof to establish the alleged 
    violation by clear and convincing evidence; and
        ``(3) if the monetary penalty is based on negligence, the United 
    States shall have the burden of proof to establish the act or 
    omission constituting the violation, and the alleged violator shall 
    have the burden of providing evidence that the act or omission did 
    not occur as a result of negligence.''.
    (b) Effective Date.--The amendment made by subsection (a) applies to 
drawback claims filed on and after the nationwide operational 
implementation of an automated drawback selectivity program by the 
Customs Service. The Customs Service shall publish notice of this date 
in the Customs Bulletin.
    SEC. 623. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC INFORMATION.
    Section 625 (19 U.S.C. 1625) is amended to read as follows:
``SEC. 625. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC INFORMATION.
    ``(a) Publication.--Within 90 days after the date of issuance of any 
interpretive ruling (including any ruling letter, or internal advice 
memorandum) or protest review decision under this chapter with respect 
to any customs transaction, the Secretary shall have such ruling or 
decision published in the Customs Bulletin or shall otherwise make such 
ruling or decision available for public inspection.
    ``(b) Appeals.--A person may appeal an adverse interpretive ruling 
and any interpretation of any regulation prescribed to implement such 
ruling to a higher level of authority within the Customs Service for de 
novo review. Upon a reasonable showing of business necessity, any such 
appeal shall be considered and decided no later than 60 days following 
the date on which the appeal is filed. The Secretary shall issue 
regulations to implement this subsection.
    ``(c) Modification and Revocation.--A proposed interpretive ruling 
or decision which would--
        ``(1) modify (other than to correct a clerical error) or revoke 
    a prior interpretive ruling or decision which has been in effect for 
    at least 60 days; or
        ``(2) have the effect of modifying the treatment previously 
    accorded by the Customs Service to substantially identical 
    transactions;
shall be published in the Customs Bulletin. The Secretary shall give 
interested parties an opportunity to submit, during not less than the 
30-day period after the date of such publication, comments on the 
correctness of the proposed ruling or decision. After consideration of 
any comments received, the Secretary shall publish a final ruling or 
decision in the Customs Bulletin within 30 days after the closing of the 
comment period. The final ruling or decision shall become effective 60 
days after the date of its publication.
    ``(d) Publication of Customs Decisions That Limit Court Decisions.--
A decision that proposes to limit the application of a court decision 
shall be published in the Customs Bulletin together with notice of 
opportunity for public comment thereon prior to a final decision.
    ``(e) Public Information.--The Secretary may make available in 
writing or through electronic media, in an efficient, comprehensive and 
timely manner, all information, including directives, memoranda, 
electronic messages and telexes which contain instructions, 
requirements, methods or advice necessary for importers and exporters to 
comply with the Customs laws and regulations. All information which may 
be made available pursuant to this subsection shall be subject to any 
exemption from disclosure provided by section 552 of title 5, United 
States Code.''.

SEC. 624. SEIZURE AUTHORITY.

    Section 596(c) (19 U.S.C. 1595a(c)) is amended to read as follows:
    ``(c) Merchandise which is introduced or attempted to be introduced 
into the United States contrary to law shall be treated as follows:
        ``(1) The merchandise shall be seized and forfeited if it--
            ``(A) is stolen, smuggled, or clandestinely imported or 
        introduced;
            ``(B) is a controlled substance, as defined in the 
        Controlled Substances Act (21 U.S.C. 801 et seq.), and is not 
        imported in accordance with applicable law; or
            ``(C) is a contraband article, as defined in section 1 of 
        the Act of August 9, 1939 (49 U.S.C. App. 781).
        ``(2) The merchandise may be seized and forfeited if--
            ``(A) its importation or entry is subject to any restriction 
        or prohibition which is imposed by law relating to health, 
        safety, or conservation and the merchandise is not in compliance 
        with the applicable rule, regulation, or statute;
            ``(B) its importation or entry requires a license, permit or 
        other authorization of an agency of the United States Government 
        and the merchandise is not accompanied by such license, permit, 
        or authorization;
            ``(C) it is merchandise or packaging in which copyright, 
        trademark, or trade name protection violations are involved 
        (including, but not limited to, violations of section 42, 43, or 
        45 of the Act of July 5, 1946 (15 U.S.C. 1124, 1125, or 1127), 
        section 506 or 509 of title 17, United States Code, or section 
        2318 or 2320 of title 18, United States Code);
            ``(D) it is trade dress merchandise involved in the 
        violation of a court order citing section 43 of such Act of July 
        5, 1946 (15 U.S.C. 1125);
            ``(E) it is merchandise which is marked intentionally in 
        violation of section 304; or
            ``(F) it is merchandise for which the importer has received 
        written notices that previous importations of identical 
        merchandise from the same supplier were found to have been 
        marked in violation of section 304.
        ``(3) If the importation or entry of the merchandise is subject 
    to quantitative restrictions requiring a visa, permit, license, or 
    other similar document, or stamp from the United States Government 
    or from a foreign government or issuing authority pursuant to a 
    bilateral or multilateral agreement, the merchandise shall be 
    subject to detention in accordance with section 499 unless the 
    appropriate visa, license, permit, or similar document or stamp is 
    presented to the Customs Service; but if the visa, permit, license, 
    or similar document or stamp which is presented in connection with 
    the importation or entry of the merchandise is counterfeit, the 
    merchandise may be seized and forfeited.
        ``(4) If the merchandise is imported or introduced contrary to a 
    provision of law which governs the classification or value of 
    merchandise and there are no issues as to the admissibility of the 
    merchandise into the United States, it shall not be seized except in 
    accordance with section 592.
        ``(5) In any case where the seizure and forfeiture of 
    merchandise are required or authorized by this section, the 
    Secretary may--
            ``(A) remit the forfeiture under section 618, or
            ``(B) permit the exportation of the merchandise, unless its 
        release would adversely affect health, safety, or conservation 
        or be in contravention of a bilateral or multilateral agreement 
        or treaty.''.
             Subtitle B--National Customs Automation Program

SEC. 631. NATIONAL CUSTOMS AUTOMATION PROGRAM.

    Part I of title IV is amended--
        (1) by striking out

                          ``PART I--DEFINITIONS

    and inserting

      ``PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM

                       ``Subpart A--Definitions'';

    and
        (2) by inserting after section 402 the following:

            ``Subpart B--National Customs Automation Program

``SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.

    ``(a) Establishment.--The Secretary shall establish the National 
Customs Automation Program (hereinafter in this subpart referred to as 
the `Program') which shall be an automated and electronic system for 
processing commercial importations and shall include the following 
existing and planned components:
        ``(1) Existing components:
            ``(A) The electronic entry of merchandise.
            ``(B) The electronic entry summary of required information.
            ``(C) The electronic transmission of invoice information.
            ``(D) The electronic transmission of manifest information.
            ``(E) Electronic payments of duties, fees, and taxes.
            ``(F) The electronic status of liquidation and 
        reliquidation.
            ``(G) The electronic selection of high risk entries for 
        examination (cargo selectivity and entry summary selectivity).
        ``(2) Planned components:
            ``(A) The electronic filing and status of protests.
            ``(B) The electronic filing (including remote filing under 
        section 414) of entry information with the Customs Service at 
        any location.
            ``(C) The electronic filing of import activity summary 
        statements and reconciliation.
            ``(D) The electronic filing of bonds.
            ``(E) The electronic penalty process.
            ``(F) The electronic filing of drawback claims, records, or 
        entries.
            ``(G) Any other component initiated by the Customs Service 
        to carry out the goals of this subpart.
    ``(b) Participation in Program.--The Secretary shall by regulation 
prescribe the eligibility criteria for participation in the Program. 
Participation in the Program is voluntary.

``SEC. 412. PROGRAM GOALS.

    ``The goals of the Program are to ensure that all regulations and 
rulings that are administered or enforced by the Customs Service are 
administered and enforced in a manner that--
        ``(1) is uniform and consistent;
        ``(2) is as minimally intrusive upon the normal flow of business 
    activity as practicable; and
        ``(3) improves compliance.

``SEC. 413. IMPLEMENTATION AND EVALUATION OF PROGRAM.

    ``(a) Overall Program Plan.--
        ``(1) In general.--Before the 180th day after the date of the 
    enactment of this Act, the Secretary shall develop and transmit to 
    the Committees an overall plan for the Program. The overall Program 
    plan shall set forth--
            ``(A) a general description of the ultimate configuration of 
        the Program;
            ``(B) a description of each of the existing components of 
        the Program listed in section 411(a)(1); and
            ``(C) estimates regarding the stages on which planned 
        components of the Program listed in section 411(a)(2) will be 
        brought on-line.
        ``(2) Additional information.--In addition to the information 
    required under paragraph (1), the overall Program plan shall include 
    a statement regarding--
            ``(A) the extent to which the existing components of the 
        Program currently meet, and the planned components will meet, 
        the Program goals set forth in section 412; and
            ``(B) the effects that the existing components are currently 
        having, and the effects that the planned components will likely 
        have, on--
                ``(i) importers, brokers, and other users of the 
            Program, and
                ``(ii) Customs Service occupations, operations, 
            processes, and systems.
    ``(b) Implementation Plan, Testing, and Evaluation.--
        ``(1) Implementation plan.--For each of the planned components 
    of the Program listed in section 411(a)(2), the Secretary shall--
            ``(A) develop an implementation plan;
            ``(B) test the component in order to assess its viability;
            ``(C) evaluate the component in order to assess its 
        contribution toward achieving the program goals; and
            ``(D) transmit to the Committees the implementation plan, 
        the testing results, and an evaluation report.
    In developing an implementation plan under subparagraph (A) and 
    evaluating components under subparagraph (C), the Secretary shall 
    publish a request for comments in the Customs Bulletin and shall 
    consult with the trade community, including importers, brokers, 
    shippers, and other affected parties.
        ``(2) Implementation.--
            ``(A) The Secretary may implement on a permanent basis any 
        Program component referred to in paragraph (1) on or after the 
        date which is 30 days after paragraph (1)(D) is complied with.
            ``(B) For purposes of subparagraph (A), the 30 days shall be 
        computed by excluding--
                ``(i) the days either House is not in session because of 
            an adjournment of more than 3 days to a day certain or an 
            adjournment of the Congress sine die, and
                ``(ii) any Saturday and Sunday, not excluded under 
            clause (i), when either House is not in session.
        ``(3) Evaluation and report.--The Secretary shall--
            ``(A) develop a user satisfaction survey of parties 
        participating in the Program;
            ``(B) evaluate the results of the user satisfaction survey 
        on a biennial basis (fiscal years) and transmit a report to the 
        Committees on the evaluation by no later than the 90th day after 
        the close of each 2d fiscal year;
            ``(C) with respect to the existing Program component listed 
        in section 411(a)(1)(G) transmit to the Committees--
                ``(i) a written evaluation of such component before the 
            180th day after the date of the enactment of this section 
            and before the implementation of the planned Program 
            components listed in section 411(a)(2) (B) and (C), and
                ``(ii) a report on such component for each of the 3 full 
            fiscal years occurring after the date of the enactment of 
            this section, which report shall be transmitted not later 
            than the 90th day after the close of each such year; and
            ``(D) not later than the 90th day after the close of fiscal 
        year 1994, and annually thereafter through fiscal year 2000, 
        transmit to the Committees a written evaluation with respect to 
        the implementation and effect on users of each of the planned 
        Program components listed in section 411(a)(2).
    In carrying out the provisions of this paragraph, the Secretary 
    shall publish requests for comments in the Customs Bulletin and 
    shall consult with the trade community, including importers, 
    brokers, shippers, and other affected parties.
    ``(c) Committees.--For purposes of this section, the term 
`Committees' means the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate.

``SEC. 414. REMOTE LOCATION FILING.

    ``(a) Core Entry Information.--
        ``(1) In general.--A Program participant may file electronically 
    an entry of merchandise with the Customs Service from a location 
    other than the district designated in the entry for examination 
    (hereafter in this section referred to as a `remote location') if--
            ``(A) the Customs Service is satisfied that the participant 
        has the capabilities referred to in paragraph (2)(A) regarding 
        such method of filing; and
            ``(B) the participant elects to file from the remote 
        location.
        ``(2) Requirements.--
            ``(A) In general.--In order to qualify for filing from a 
        remote location, a Program participant must have the capability 
        to provide, on an entry-by-entry basis, for the following:
                ``(i) The electronic entry of merchandise.
                ``(ii) The electronic entry summary of required 
            information.
                ``(iii) The electronic transmission of invoice 
            information (when required by the Customs Service).
                ``(iv) The electronic payment of duties, fees, and 
            taxes.
                ``(v) Such other electronic capabilities within the 
            existing or planned components of the Program as the 
            Secretary shall by regulation require.
            ``(B) Restriction on exemption from requirements.--The 
        Customs Service may not permit any exemption or waiver from the 
        requirements established by this section for participation in 
        remote entry filing.
        ``(3) Conditions on filing under this section.--The Secretary 
    may prohibit a Program participant from participating in remote 
    location filing, and may remove a Program participant from 
    participation in remote location filing, if the participant--
            ``(i) fails to meet all the compliance requirements and 
        operational standards of remote location filing; or
            ``(ii) fails to adhere to all applicable laws and 
        regulations.
        ``(4) Alternative filing.--Any Program participant that is 
    eligible to file entry information electronically from a remote 
    location but chooses not to do so in the case of any entry must file 
    any paper documentation for the entry at the designated location 
    referred to in subsection (d).
    ``(b) Additional Entry Information.--
        ``(1) In general.--A Program participant that is eligible under 
    subsection (a) to file entry information from a remote location may, 
    if the Customs Service is satisfied that the participant meets the 
    requirements under paragraph (2), also electronically file from the 
    remote location additional information that is required by the 
    Customs Service to be presented before the acceptance of entry 
    summary information and at the time of acceptance of entry summary 
    information.
        ``(2) Requirements.--The Secretary shall publish, and 
    periodically update, a list of those capabilities within the 
    existing and planned components of the Program that a Program 
    participant must have for purposes of this subsection.
        ``(3) Filing of additional information.--
            ``(A) If information electronically acceptable.--A Program 
        participant that is eligible under paragraph (1) to file 
        additional information from a remote location shall 
        electronically file all such information that the Customs 
        Service can accept electronically.
            ``(B) Alternative filing.--If the Customs Service cannot 
        accept additional information electronically, the Program 
        participant shall file the paper documentation with respect to 
        the information at the appropriate filing location.
            ``(C) Appropriate location.--For purposes of subparagraph 
        (B), the `appropriate location' is--
                ``(i) before January 1, 1999, a designated location; and
                ``(ii) after December 31, 1998--

                    ``(I) if the paper documentation is required for 
                release, a designated location; or
                    ``(II) if the paper documentation is not required 
                for release, a remote location designated by the Customs 
                Service or a designated location.

            ``(D) Other.--A Program participant that is eligible under 
        paragraph (1) to file additional information electronically from 
        a remote location but chooses not to do so must file the paper 
        documentation with respect to the information at a designated 
        location.
    ``(c) Post-Entry Summary Information.--A Program participant that is 
eligible to file electronically entry information under subsection (a) 
and additional information under subsection (b) from a remote location 
may file at any remote location designated by the Customs Service any 
information required by the Customs Service after entry summary.
    ``(d) Definitions.--As used in this section:
        ``(1) The term `designated location' means a customs office 
    located in the customs district designated by the entry filer for 
    purposes of customs examination of the merchandise.
        ``(2) The term `Program participant' means, with respect to an 
    entry of merchandise, any party entitled to make the entry under 
    section 484(a)(2)(B).''.

SEC. 632. DRAWBACK AND REFUNDS.

    (a) Amendments.--Section 313 (19 U.S.C. 1313) is amended as follows:
        (1) Subsection (a) is amended--
            (A) by inserting ``or destruction under customs 
        supervision'' after ``Upon the exportation'';
            (B) by inserting ``provided that those articles have not 
        been used prior to such exportation or destruction,'' after 
        ``manufactured or produced in the United States with the use of 
        imported merchandise,'';
            (C) by inserting ``or destruction'' after ``refunded upon 
        the exportation''; and
            (D) by striking out ``wheat imported after ninety days after 
        the date of the enactment of this Act'' and inserting ``imported 
        wheat''.
        (2) Subsection (b) is amended--
            (A) by striking out ``duty-free or domestic merchandise'' 
        and inserting ``any other merchandise (whether imported or 
        domestic)'';
            (B) by inserting ``, or destruction under customs 
        supervision,'' after ``there shall be allowed upon the 
        exportation'';
            (C) by inserting ``or destroyed'' after ``notwithstanding 
        the fact that none of the imported merchandise may actually have 
        been used in the manufacture or production of the exported'';
            (D) by inserting ``, but only if those articles have not 
        been used prior to such exportation or destruction'' after ``an 
        amount of drawback equal to that which would have been allowable 
        had the merchandise used therein been imported''; and
            (E) by inserting ``or destruction under customs 
        supervision'' after ``but the total amount of drawback allowed 
        upon the exportation''.
        (3) Subsection (c) is amended to read as follows:
    ``(c) Merchandise Not Conforming to Sample or Specifications.--Upon 
the exportation, or destruction under the supervision of the Customs 
Service, of merchandise--
        ``(1) not conforming to sample or specifications, shipped 
    without the consent of the consignee, or determined to be defective 
    as of the time of importation;
        ``(2) upon which the duties have been paid;
        ``(3) which has been entered or withdrawn for consumption; and
        ``(4) which, within 3 years after release from the custody of 
    the Customs Service, has been returned to the custody of the Customs 
    Service for exportation or destruction under the supervision of the 
    Customs Service;
the full amount of the duties paid upon such merchandise, less 1 
percent, shall be refunded as drawback.''.
        (4) Subsection (j) is amended to read as follows:
    ``(j) Unused Merchandise Drawback.--
        ``(1) If imported merchandise, on which was paid any duty, tax, 
    or fee imposed under Federal law because of its importation--
            ``(A) is, before the close of the 3-year period beginning on 
        the date of importation--
                ``(i) exported, or
                ``(ii) destroyed under customs supervision; and
            ``(B) is not used within the United States before such 
        exportation or destruction;
    then upon such exportation or destruction 99 percent of the amount 
    of each duty, tax, or fee so paid shall be refunded as drawback. The 
    exporter (or destroyer) has the right to claim drawback under this 
    paragraph, but may endorse such right to the importer or any 
    intermediate party.
        ``(2) If there is, with respect to imported merchandise on which 
    was paid any duty, tax, or fee imposed under Federal law because of 
    its importation, any other merchandise (whether imported or 
    domestic), that--
            ``(A) is commercially interchangeable with such imported 
        merchandise;
            ``(B) is, before the close of the 3-year period beginning on 
        the date of importation of the imported merchandise, either 
        exported or destroyed under customs supervision; and
            ``(C) before such exportation or destruction--
                ``(i) is not used within the United States, and
                ``(ii) is in the possession of, including ownership 
            while in bailment, in leased facilities, in transit to, or 
            in any other manner under the operational control of, the 
            party claiming drawback under this paragraph, if that 
            party--

                    ``(I) is the importer of the imported merchandise, 
                or
                    ``(II) received from the person who imported and 
                paid any duty due on the imported merchandise a 
                certificate of delivery transferring to the party the 
                imported merchandise, commercially interchangeable 
                merchandise, or any combination of imported and 
                commercially interchangeable merchandise (and any such 
                transferred merchandise, regardless of its origin, will 
                be treated as the imported merchandise and any retained 
                merchandise will be treated as domestic merchandise);

        then upon the exportation or destruction of such other 
        merchandise the amount of each such duty, tax, and fee paid 
        regarding the imported merchandise shall be refunded as 
        drawback, but in no case may the total drawback on the imported 
        merchandise, whether available under this paragraph or any other 
        provision of law or any combination thereof, exceed 99 percent 
        of that duty, tax, or fee.
        ``(3) The performing of any operation or combination of 
    operations (including, but not limited to, testing, cleaning, 
    repacking, inspecting, sorting, refurbishing, freezing, blending, 
    repairing, reworking, cutting, slitting, adjusting, replacing 
    components, relabeling, disassembling, and unpacking), not amounting 
    to manufacture or production for drawback purposes under the 
    preceding provisions of this section on--
            ``(A) the imported merchandise itself in cases to which 
        paragraph (1) applies, or
            ``(B) the commercially interchangeable merchandise in cases 
        to which paragraph (2) applies,
    shall not be treated as a use of that merchandise for purposes of 
    applying paragraph (1)(B) or (2)(C).''.
        (5) Subsection (l) is amended by striking out ``the fixing of a 
    time limit within which drawback entries or entries for refund under 
    any of the provisions of this section or section 309(b) shall be 
    filed and completed,'' and inserting ``the authority for the 
    electronic submission of drawback entries''.
        (6) Subsection (p) is amended to read as follows:
    ``(p) Substitution of Finished Petroleum Derivatives.--
        ``(1) In general.--Notwithstanding any other provision of this 
    section, if--
            ``(A) an article (hereafter referred to in this subsection 
        as the `exported article') of the same kind and quality as a 
        qualified article is exported;
            ``(B) the requirements set forth in paragraph (2) are met; 
        and
            ``(C) a drawback claim is filed regarding the exported 
        article;
    the amount of the duties paid on, or attributable to, such qualified 
    article shall be refunded as drawback to the drawback claimant.
        ``(2) Requirements.--The requirements referred to in paragraph 
    (1) are as follows:
            ``(A) The exporter of the exported article--
                ``(i) manufactured or produced the qualified article in 
            a quantity equal to or greater than the quantity of the 
            exported article,
                ``(ii) purchased or exchanged, directly or indirectly, 
            the qualified article from a manufacturer or producer 
            described in subsection (a) or (b) in a quantity equal to or 
            greater than the quantity of the exported article,
                ``(iii) imported the qualified article in a quantity 
            equal to or greater than the quantity of the exported 
            article, or
                ``(iv) purchased or exchanged, directly or indirectly, 
            an imported qualified article from an importer in a quantity 
            equal to or greater than the quantity of the exported 
            article.
            ``(B) In the case of the requirement described in 
        subparagraph (A)(ii), the manufacturer or producer produced the 
        qualified article in a quantity equal to or greater than the 
        quantity of the exported article.
            ``(C) In the case of the requirement of subparagraph (A)(i) 
        or (A)(ii), the exported article is exported during the period 
        that the qualified article described in subparagraph (A)(i) or 
        (A)(ii) (whichever is applicable) is manufactured or produced, 
        or within 180 days after the close of such period.
            ``(D) In the case of the requirement of subparagraph (A)(i) 
        or (A)(ii), the specific petroleum refinery or production 
        facility which made the qualified article concerned is 
        identified.
            ``(E) In the case of the requirement of subparagraph 
        (A)(iii) or (A)(iv), the exported article is exported within 180 
        days after the date of entry of an imported qualified article 
        described in subparagraph (A)(iii) or (A)(iv) (whichever is 
        applicable).
            ``(F) Except as otherwise specifically provided in this 
        subsection, the drawback claimant complies with all requirements 
        of this section, including providing certificates which 
        establish the drawback eligibility of articles for which 
        drawback is claimed.
            ``(G) The manufacturer, producer, importer, exporter, and 
        drawback claimant of the qualified article and the exported 
        article maintain all records required by regulation.
        ``(3) Definition of qualified article, etc.--For purposes of 
    this subsection--
            ``(A) The term `qualified article' means an article--
                ``(i) described in--

                    ``(I) headings 2707, 2708, 2710, 2711, 2712, 2713, 
                2714, 2715, 2901, and 2902 of the Harmonized Tariff 
                Schedule of the United States, or
                    ``(II) headings 3901 through 3914 of such Schedule 
                (as such headings apply to liquids, pastes, powders, 
                granules, and flakes), and

                ``(ii) which is--

                    ``(I) manufactured or produced as described in 
                subsection (a) or (b) from crude petroleum or a 
                petroleum derivative, or
                    ``(II) imported duty-paid.

            ``(B) An exported article is of the same kind and quality as 
        the qualified article for which it is substituted under this 
        subsection if it is a product that is commercially 
        interchangeable with or referred to under the same eight-digit 
        classification of the Harmonized Tariff Schedule of the United 
        States as the qualified article.
            ``(C) The term `drawback claimant' means the exporter of the 
        exported article or the refiner, producer, or importer of such 
        article. Any person eligible to file a drawback claim under this 
        subparagraph may designate another person to file such claim.
        ``(4) Limitation on drawback.--The amount of drawback payable 
    under this subsection shall not exceed the amount of drawback that 
    would be attributable to the article--
            ``(A) manufactured or produced under subsection (a) or (b) 
        by the manufacturer or producer described in clause (i) or (ii) 
        of paragraph (2)(A), or
            ``(B) imported under clause (iii) or (iv) of paragraph 
        (2)(A).''.
        (7) The following new subsections are inserted after subsection 
    (p):
    ``(q) Packaging Material.--Packaging material, when used on or for 
articles or merchandise exported or destroyed under subsection (a), (b), 
(c), or (j), shall be eligible under such subsection for refund, as 
drawback, of 99 percent of any duty, tax, or fee imposed under Federal 
law on the importation of such material.
    ``(r) Filing Drawback Claims.--
        ``(1) A drawback entry and all documents necessary to complete a 
    drawback claim, including those issued by the Customs Service, shall 
    be filed or applied for, as applicable, within 3 years after the 
    date of exportation or destruction of the articles on which drawback 
    is claimed, except that any landing certificate required by 
    regulation shall be filed within the time limit prescribed in such 
    regulation. Claims not completed within the 3-year period shall be 
    considered abandoned. No extension will be granted unless it is 
    established that the Customs Service was responsible for the 
    untimely filing.
        ``(2) A drawback entry for refund filed pursuant to any 
    subsection of this section shall be deemed filed pursuant to any 
    other subsection of this section should it be determined that 
    drawback is not allowable under the entry as originally filed but is 
    allowable under such other subsection.
    ``(s) Designation of Merchandise by Successor.--
        ``(1) For purposes of subsection (b), a drawback successor may 
    designate imported merchandise used by the predecessor before the 
    date of succession as the basis for drawback on articles 
    manufactured by the drawback successor after the date of succession.
        ``(2) For purposes of subsection (j)(2), a drawback successor 
    may designate--
            ``(A) imported merchandise which the predecessor, before the 
        date of succession, imported; or
            ``(B) imported merchandise, commercially interchangeable 
        merchandise, or any combination of imported and commercially 
        interchangeable merchandise for which the successor received, 
        before the date of succession, from the person who imported and 
        paid any duty due on the imported merchandise a certificate of 
        delivery transferring to the successor such merchandise;
    as the basis for drawback on merchandise possessed by the drawback 
    successor after the date of succession.
        ``(3) For purposes of this subsection, the term `drawback 
    successor' means an entity to which another entity (in this 
    subsection referred to as the `predecessor') has transferred by 
    written agreement, merger, or corporate resolution--
            ``(A) all or substantially all of the rights, privileges, 
        immunities, powers, duties, and liabilities of the predecessor; 
        or
            ``(B) the assets and other business interests of a division, 
        plant, or other business unit of such predecessor, but only if 
        in such transfer the value of the transferred realty, 
        personalty, and intangibles (other than drawback rights, 
        inchoate or otherwise) exceeds the value of all transferred 
        drawback rights, inchoate or otherwise.
        ``(4) No drawback shall be paid under this subsection until 
    either the predecessor or the drawback successor (who shall also 
    certify that it has the predecessor's records) certifies that--
            ``(A) the transferred merchandise was not and will not be 
        claimed by the predecessor, and
            ``(B) the predecessor did not and will not issue any 
        certificate to any other person that would enable that person to 
        claim drawback.
    ``(t) Drawback Certificates.--Any person who issues a certificate 
which would enable another person to claim drawback shall be subject to 
the recordkeeping provisions of this chapter, with the retention period 
beginning on the date that such certificate is issued.
    ``(u) Eligibility of Entered or Withdrawn Merchandise.--Imported 
merchandise that has not been regularly entered or withdrawn for 
consumption shall not satisfy any requirement for use, exportation, or 
destruction under this section.
    ``(v) Multiple Drawback Claims.--Merchandise that is exported or 
destroyed to satisfy any claim for drawback shall not be the basis of 
any other claim for drawback; except that appropriate credit and 
deductions for claims covering components or ingredients of such 
merchandise shall be made in computing drawback payments.''.
    (b) Application of Amendment to Finished Petroleum Derivatives.--
Notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) 
or any other provision of law, the amendment made by paragraph (6) of 
subsection (a) shall apply to--
        (1) claims filed or liquidated on or after January 1, 1988, and
        (2) claims that are unliquidated, under protest, or in 
    litigation on the date of the enactment of this Act.

SEC. 633. EFFECTIVE DATE OF RATES OF DUTY.

    Section 315 (19 U.S.C. 1315) is amended--
        (1) by striking out ``appropriate customs officer in the form 
    and manner prescribed by regulations of the Secretary of the 
    Treasury,'' in the first sentence of subsection (a) and inserting 
    ``Customs Service by written, electronic or such other means as the 
    Secretary by regulation shall prescribe,'';
        (2) by striking out ``customs custody'' in the first sentence of 
    subsection (b) and inserting ``custody of the Customs Service''; and
        (3) by striking out ``paragraph 813'' in subsection (c) and 
    inserting ``chapter 98 of the Harmonized Tariff Schedule of the 
    United States''.

SEC. 634. DEFINITIONS.

    Section 401 (19 U.S.C. 1401) is amended--
        (1) by amending subsection (k) to read as follows:
    ``(k) The term `hovering vessel' means--
        ``(1) any vessel which is found or kept off the coast of the 
    United States within or without the customs waters, if, from the 
    history, conduct, character, or location of the vessel, it is 
    reasonable to believe that such vessel is being used or may be used 
    to introduce or promote or facilitate the introduction or attempted 
    introduction of merchandise into the United States in violation of 
    the laws of the United States; and
        ``(2) any vessel which has visited a vessel described in 
    paragraph (1).''; and
        (2) by inserting at the end thereof the following new 
    subsections:
    ``(n) The term `electronic transmission' means the transfer of data 
or information through an authorized electronic data interchange system 
consisting of, but not limited to, computer modems and computer 
networks.
    ``(o) The term `electronic entry' means the electronic transmission 
to the Customs Service of--
        ``(1) entry information required for the entry of merchandise, 
    and
        ``(2) entry summary information required for the classification 
    and appraisement of the merchandise, the verification of statistical 
    information, and the determination of compliance with applicable 
    law.
    ``(p) The term `electronic data interchange system' means any 
established mechanism approved by the Commissioner of Customs through 
which information can be transferred electronically.
    ``(q) The term `National Customs Automation Program' means the 
program established under section 411.
    ``(r) The term `import activity summary statement' refers to data or 
information transmitted electronically to the Customs Service, in 
accordance with such regulations as the Secretary prescribes, at the end 
of a specified period of time which enables the Customs Service to 
assess properly the duties, taxes and fees on merchandise imported 
during that period, collect accurate statistics and determine whether 
any other applicable requirement of law (other than a requirement 
relating to release from customs custody) is met.
    ``(s) The term `reconciliation' means an electronic process, 
initiated at the request of an importer, under which the elements of an 
entry, other than those elements related to the admissibility of the 
merchandise, that are undetermined at the time of entry summary are 
provided to the Customs Service at a later time. A reconciliation is 
treated as an entry for purposes of liquidation, reliquidation, and 
protest.''.

SEC. 635. MANIFESTS.

    Section 431 (19 U.S.C. 1431) is amended--
        (1) by amending subsections (a) and (b) to read as follows:
    ``(a) In General.--Every vessel required to make entry under section 
434 or obtain clearance under section 4197 of the Revised Statutes of 
the United States (46 U.S.C. App. 91) shall have a manifest that 
complies with the requirements prescribed under subsection (d).
    ``(b) Production of Manifest.--Any manifest required by the Customs 
Service shall be signed, produced, delivered or electronically 
transmitted by the master or person in charge of the vessel, aircraft, 
or vehicle, or by any other authorized agent of the owner or operator of 
the vessel, aircraft, or vehicle in accordance with the requirements 
prescribed under subsection (d). A manifest may be supplemented by bill 
of lading data supplied by the issuer of such bill. If any irregularity 
of omission or commission occurs in any way in respect to any manifest 
or bill of lading data, the owner or operator of the vessel, aircraft or 
vehicle, or any party responsible for such irregularity, shall be liable 
for any fine or penalty prescribed by law with respect to such 
irregularity. The Customs Service may take appropriate action against 
any of the parties.''; and
        (2) by inserting after subsection (c) the following new 
    subsection:
    ``(d) Regulations.--
        ``(1) In general.--The Secretary shall by regulation--
            ``(A) specify the form for, and the information and data 
        that must be contained in, the manifest required by subsection 
        (a);
            ``(B) allow, at the option of the individual producing the 
        manifest and subject to paragraph (2), letters and documents 
        shipments to be accounted for by summary manifesting procedures;
            ``(C) prescribe the manner of production for, and the 
        delivery for electronic transmittal of, the manifest required by 
        subsection (a); and
            ``(D) prescribe the manner for supplementing manifests with 
        bill of lading data under subsection (b).
        ``(2) Letters and documents shipments.--For purposes of 
    paragraph (1)(B)--
            ``(A) the Customs Service may require with respect to 
        letters and documents shipments--
                ``(i) that they be segregated by country of origin, and
                ``(ii) additional examination procedures that are not 
            necessary for individually manifested shipments;
            ``(B) standard letter envelopes and standard document packs 
        shall be segregated from larger document shipments for purposes 
        of customs inspections; and
            ``(C) the term `letters and documents' means--
                ``(i) data described in General Headnote 4(c) of the 
            Harmonized Tariff Schedule of the United States,
                ``(ii) securities and similar evidences of value 
            described in heading 4907 of such Schedule, but not monetary 
            instruments defined pursuant to chapter 53 of title 31, 
            United States Code, and
                ``(iii) personal correspondence, whether on paper, 
            cards, photographs, tapes, or other media.''.

SEC. 636. INVOICE CONTENTS.

    Section 481 (19 U.S.C. 1481) is amended--
        (1) by amending subsection (a)--
            (A) by amending the matter preceding paragraph (1) to read 
        as follows: ``In General.--All invoices of merchandise to be 
        imported into the United States and any electronic equivalent 
        thereof considered acceptable by the Secretary in regulations 
        prescribed under this section shall set forth, in written, 
        electronic, or such other form as the Secretary shall prescribe, 
        the following:'',
            (B) by amending paragraph (3) to read as follows:
        ``(3) A detailed description of the merchandise, including the 
    commercial name by which each item is known, the grade or quality, 
    and the marks, numbers, or symbols under which sold by the seller or 
    manufacturer in the country of exportation, together with the marks 
    and numbers of the packages in which the merchandise is packed;'', 
    and
            (C) by amending paragraph (10) to read as follows:
        ``(10) Any other fact that the Secretary may by regulation 
    require as being necessary to a proper appraisement, examination and 
    classification of the merchandise.'';
        (2) by amending subsection (c) to read as follows:
    ``(c) Importer Provision of Information.--Any information required 
to be set forth on an invoice may alternatively be provided by any of 
the parties qualifying as an `importer of record' under section 
484(a)(2)(B) by such means, in such form or manner, and within such time 
as the Secretary shall by regulation prescribe.''; and
        (3) by inserting before the period at the end of subsection (d) 
    the following: ``and may allow for the submission or electronic 
    transmission of partial invoices, electronic equivalents of 
    invoices, bills, or other documents or parts thereof, required under 
    this section''.

SEC. 637. ENTRY OF MERCHANDISE.

    (a) Amendments to Section 484.--Section 484 (19 U.S.C. 1484) is 
amended to read as follows:

``SEC. 484. ENTRY OF MERCHANDISE.

    ``(a) Requirement and Time.--
        ``(1) Except as provided in sections 490, 498, 552, 553, and 
    336(j), one of the parties qualifying as `importer of record' under 
    paragraph (2)(B), either in person or by an agent authorized by the 
    party in writing, shall, using reasonable care--
            ``(A) make entry therefor by filing with the Customs 
        Service--
                ``(i) such documentation or, pursuant to an electronic 
            data interchange system, such information as is necessary to 
            enable the Customs Service to determine whether the 
            merchandise may be released from customs custody, and
                ``(ii) notification whether an import activity summary 
            statement will be filed; and
            ``(B) complete the entry by filing with the Customs Service 
        the declared value, classification and rate of duty applicable 
        to the merchandise, and such other documentation or, pursuant to 
        an electronic data interchange system, such other information as 
        is necessary to enable the Customs Service to--
                ``(i) properly assess duties on the merchandise,
                ``(ii) collect accurate statistics with respect to the 
            merchandise, and
                ``(iii) determine whether any other applicable 
            requirement of law (other than a requirement relating to 
            release from customs custody) is met.
        ``(2)(A) The documentation or information required under 
    paragraph (1) with respect to any imported merchandise shall be 
    filed or transmitted in such manner and within such time periods as 
    the Secretary shall by regulation prescribe. Such regulations shall 
    provide for the filing of import activity summary statements, 
    covering entries or warehouse withdrawals made during a calendar 
    month, within such time period as is prescribed in regulations but 
    not to exceed the 20th day following such calendar month.
        ``(B) When an entry of merchandise is made under this section, 
    the required documentation or information shall be filed or 
    electronically transmitted either by the owner or purchaser of the 
    merchandise or, when appropriately designated by the owner, 
    purchaser, or consignee of the merchandise, a person holding a valid 
    license under section 641. When a consignee declares on entry that 
    he is the owner or purchaser of merchandise the Customs Service may, 
    without liability, accept the declaration. For the purposes of this 
    Act, the importer of record must be one of the parties who is 
    eligible to file the documentation or information required by this 
    section.
        ``(C) The Secretary, in prescribing regulations to carry out 
    this subsection, shall establish procedures which insure the 
    accuracy and timeliness of import statistics, particularly 
    statistics relevant to the classification and valuation of imports. 
    Corrections of errors in such statistical data shall be transmitted 
    immediately to the Director of the Bureau of the Census, who shall 
    make corrections in the statistics maintained by the Bureau. The 
    Secretary shall also provide, to the maximum extent practicable, for 
    the protection of the revenue, the enforcement of laws governing the 
    importation and exportation of merchandise, the facilitation of the 
    commerce of the United States, and the equal treatment of all 
    importers of record of imported merchandise.
    ``(b) Reconciliation.--
        ``(1) In general.--A party that electronically transmits an 
    entry summary or import activity summary statement may at the time 
    of filing such summary or statement notify the Customs Service of 
    his intention to file a reconciliation pursuant to such regulations 
    as the Secretary may prescribe. Such reconciliation must be filed by 
    the importer of record within such time period as is prescribed by 
    regulation but no later than 15 months following the filing of the 
    entry summary or import activity summary statement; except that the 
    prescribed time period for reconciliation issues relating to the 
    assessment of antidumping and countervailing duties shall require 
    filing no later than 90 days after the Customs Service advises the 
    importer that a period of review for antidumping or countervailing 
    duty purposes has been completed. Before filing a reconciliation, an 
    importer of record shall post bond or other security pursuant to 
    such regulations as the Secretary may prescribe.
        ``(2) Regulations regarding ad/cv duties.--The Secretary shall 
    prescribe, in consultation with the Secretary of Commerce, such 
    regulations as are necessary to adapt the reconciliation process for 
    use in the collection of antidumping and countervailing duties.
    ``(c) Release of Merchandise.--The Customs Service may permit the 
entry and release of merchandise from customs custody in accordance with 
such regulations as the Secretary may prescribe. No officer of the 
Customs Service shall be liable to any person with respect to the 
delivery of merchandise released from customs custody in accordance with 
such regulations.
    ``(d) Signing and Contents.--Entries shall be signed by the importer 
of record, or his agent, unless filed pursuant to an electronic data 
interchange system. If electronically filed, each transmission of data 
shall be certified by an importer of record or his agent, one of whom 
shall be resident in the United States for purposes of receiving service 
of process, as being true and correct to the best of his knowledge and 
belief, and such transmission shall be binding in the same manner and to 
the same extent as a signed document. The entry shall set forth such 
facts in regard to the importation as the Secretary may require and 
shall be accompanied by such invoices, bills of lading, certificates, 
and documents, or their electronically submitted equivalents, as are 
required by regulation.
    ``(e) Production of Invoice.--The Secretary may provide by 
regulation for the production of an invoice, parts thereof, or the 
electronic equivalents thereof, in such manner and form, and under such 
terms and conditions, as the Secretary considers necessary.
    ``(f) Statistical Enumeration.--The Secretary, the Secretary of 
Commerce, and the United States International Trade Commission shall 
establish from time to time for statistical purposes an enumeration of 
articles in such detail as in their judgment may be necessary, 
comprehending all merchandise imported into the United States and 
exported from the United States, and shall seek, in conjunction with 
statistical programs for domestic production and programs for achieving 
international harmonization of trade statistics, to establish the 
comparability thereof with such enumeration of articles. All import 
entries and export declarations shall include or have attached thereto 
an accurate statement specifying, in terms of such detailed enumeration, 
the kinds and quantities of all merchandise imported and exported and 
the value of the total quantity of each kind of article.
    ``(g) Statement of Cost of Production.--Under such regulations as 
the Secretary may prescribe, the Customs Service may require a verified 
statement from the manufacturer or producer showing the cost of 
producing the imported merchandise, if the Customs Service considers 
such verification necessary for the appraisement of such merchandise.
    ``(h) Admissibility of Data Electronically Transmitted.--Any entry 
or other information transmitted by means of an authorized electronic 
data interchange system shall be admissible in any and all 
administrative and judicial proceedings as evidence of such entry or 
information.''.
    (b) Amendment to Section 771.--Section 771 (19 U.S.C. 1677) is 
amended by adding at the end the following new paragraph:
        ``(23) Entry.--The term `entry' includes, in appropriate 
    circumstances as determined by the administering authority, a 
    reconciliation entry created under a reconciliation process, defined 
    in section 401(s), that is initiated by an importer. The liability 
    of an importer under an antidumping or countervailing duty 
    proceeding for entries of merchandise subject to the proceeding will 
    attach to the corresponding reconciliation entry or entries. 
    Suspension of liquidation of the reconciliation entry or entries, 
    for the purpose of enforcing this title, is equivalent to the 
    suspension of liquidation of the corresponding individual entries; 
    but the suspension of liquidation of the reconciliation entry or 
    entries for such purpose does not preclude liquidation for any other 
    purpose.''.

SEC. 638. APPRAISEMENT AND OTHER PROCEDURES.

    Section 500 (19 U.S.C. 1500) is amended--
        (1) by striking out ``The appropriate customs officer'' and 
    inserting ``The Customs Service'';
        (2) by striking out ``appraise'' in subsection (a) and inserting 
    ``fix the final appraisement of'';
        (3) by striking out ``ascertain the'' in subsection (b) and 
    inserting ``fix the final'';
        (4) by amending subsection (c)--
            (A) by inserting ``final'' after ``fix the'', and
            (B) by inserting ``, taxes, and fees'' after ``duties'' 
        wherever it appears; and
        (5) by amending subsections (d) and (e) to read as follows:
        ``(d) liquidate the entry and reconciliation, if any, of such 
    merchandise; and
        ``(e) give or transmit, pursuant to an electronic data 
    interchange system, notice of such liquidation to the importer, his 
    consignee, or agent in such form and manner as the Secretary shall 
    by regulation prescribe.''.

SEC. 639. VOLUNTARY RELIQUIDATIONS.

    Section 501 (19 U.S.C. 1501) is amended--
        (1) by striking out ``the appropriate customs officer on his own 
    initiative'' and inserting ``the Customs Service'';
        (2) by inserting ``or transmitted'' after ``given'' wherever it 
    appears; and
        (3) by amending the section heading to read as follows:

``SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUSTOMS SERVICE.''.

SEC. 640. APPRAISEMENT REGULATIONS.

    Section 502 (19 U.S.C. 1502) is amended--
        (1) by amending subsection (a)--
            (A) by inserting ``(including regulations establishing 
        procedures for the issuance of binding rulings prior to the 
        entry of the merchandise concerned)'' after ``law'',
            (B) by striking out ``ports of entry, and'' and inserting 
        ``ports of entry. The Secretary'',
            (C) by inserting ``or classifying'' after ``appraising'' 
        wherever it appears, and
            (D) by striking out ``such port'' and inserting ``any port, 
        and may direct any customs officer at any port to review entries 
        of merchandise filed at any other port''; and
        (2) by striking out subsection (b) and redesignating subsection 
    (c) as subsection (b).

SEC. 641. LIMITATION ON LIQUIDATION.

    Section 504 (19 U.S.C. 1504) is amended--
        (1) by amending subsection (a)--
            (A) by striking out ``Except as provided in subsection 
        (b),'' and inserting ``Unless an entry is extended under 
        subsection (b) or suspended as required by statute or court 
        order,'',
            (B) by striking out ``or'' at the end of paragraph (2),
            (C) by inserting ``or'' after the semicolon at the end of 
        paragraph (3), and
            (D) by inserting the following new paragraph after paragraph 
        (3):
        ``(4) if a reconciliation is filed, or should have been filed, 
    the date of the filing under section 484 or the date the 
    reconciliation should have been filed;''; and
        (2) by amending subsections (b), (c), and (d) to read as 
    follows:
    ``(b) Extension.--The Secretary may extend the period in which to 
liquidate an entry if--
        ``(1) the information needed for the proper appraisement or 
    classification of the merchandise, or for insuring compliance with 
    applicable law, is not available to the Customs Service; or
        ``(2) the importer of record requests such extension and shows 
    good cause therefor.
The Secretary shall give notice of an extension under this subsection to 
the importer of record and the surety of such importer of record. Notice 
shall be in such form and manner (which may include electronic 
transmittal) as the Secretary shall by regulation prescribe. Any entry 
the liquidation of which is extended under this subsection shall be 
treated as having been liquidated at the rate of duty, value, quantity, 
and amount of duty asserted at the time of entry by the importer of 
record at the expiration of 4 years from the applicable date specified 
in subsection (a).
    ``(c) Notice of Suspension.--If the liquidation of any entry is 
suspended, the Secretary shall by regulation require that notice of the 
suspension be provided, in such manner as the Secretary considers 
appropriate, to the importer of record and to any authorized agent and 
surety of such importer of record.
    ``(d) Removal of Suspension.--When a suspension required by statute 
or court order is removed, the Customs Service shall liquidate the entry 
within 6 months after receiving notice of the removal from the 
Department of Commerce, other agency, or a court with jurisdiction over 
the entry. Any entry not liquidated by the Customs Service within 6 
months after receiving such notice shall be treated as having been 
liquidated at the rate of duty, value, quantity, and amount of duty 
asserted at the time of entry by the importer of record.''.

SEC. 642. PAYMENT OF DUTIES AND FEES.

    (a) Amendment to Section 505.--Section 505 (19 U.S.C. 1505) is 
amended to read as follows:

``SEC. 505. PAYMENT OF DUTIES AND FEES.

    ``(a) Deposit of Estimated Duties, Fees, and Interest.--Unless 
merchandise is entered for warehouse or transportation, or under bond, 
the importer of record shall deposit with the Customs Service at the 
time of making entry, or at such later time as the Secretary may 
prescribe by regulation, the amount of duties and fees estimated to be 
payable thereon. Such regulations may provide that estimated duties and 
fees shall be deposited before or at the time an import activity summary 
statement is filed. If an import activity summary statement is filed, 
the estimated duties and fees shall be deposited together with interest, 
at a rate determined by the Secretary, accruing from the first date of 
the month the statement is required to be filed until the date such 
statement is actually filed.
    ``(b) Collection or Refund of Duties, Fees, and Interest Due Upon 
Liquidation or Reliquidation.--The Customs Service shall collect any 
increased or additional duties and fees due, together with interest 
thereon, or refund any excess moneys deposited, together with interest 
thereon, as determined on a liquidation or reliquidation. Duties, fees, 
and interest determined to be due upon liquidation or reliquidation are 
due 30 days after issuance of the bill for such payment. Refunds of 
excess moneys deposited, together with interest thereon, shall be paid 
within 30 days of liquidation or reliquidation.
    ``(c) Interest.--Interest assessed due to an underpayment of duties, 
fees, or interest shall accrue, at a rate determined by the Secretary, 
from the date the importer of record is required to deposit estimated 
duties, fees, and interest to the date of liquidation or reliquidation 
of the applicable entry or reconciliation. Interest on excess moneys 
deposited shall accrue, at a rate determined by the Secretary, from the 
date the importer of record deposits estimated duties, fees, and 
interest to the date of liquidation or reliquidation of the applicable 
entry or reconciliation.
    ``(d) Delinquency.--If duties, fees, and interest determined to be 
due or refunded are not paid in full within the 30-day period specified 
in subsection (b), any unpaid balance shall be considered delinquent and 
bear interest by 30-day periods, at a rate determined by the Secretary, 
from the date of liquidation or reliquidation until the full balance is 
paid. No interest shall accrue during the 30-day period in which payment 
is actually made.''.
    (b) Conforming Amendment.--Subsection (d) of section 520 (19 U.S.C. 
1520(d)) is repealed.

SEC. 643. ABANDONMENT AND DAMAGE.

    Section 506 (19 U.S.C. 1506) is amended--
        (1) by striking out ``the appropriate customs officer'' and 
    ``such customs officer'' wherever they appear and inserting ``the 
    Customs Service'';
        (2) by amending paragraph (1)--
            (A) by striking out ``not sent to the appraiser's stores 
        for'' and inserting ``released without an'',
            (B) by striking out ``of the examination packages or 
        quantities of merchandise'',
            (C) by striking out ``the appraiser's stores'' and inserting 
        ``the Customs Service'', and
            (D) by inserting ``or entry'' after ``invoice'', and
        (3) by amending paragraph (2)--
            (A) by inserting ``, electronically or otherwise,'' after 
        ``files'', and
            (B) by striking out ``written''.

SEC. 644. CUSTOMS OFFICER'S IMMUNITY.

    Section 513 (19 U.S.C. 1513) is amended to read as follows:

``SEC. 513. CUSTOMS OFFICER'S IMMUNITY.

    ``No customs officer shall be liable in any way to any person for or 
on account of--
        ``(1) any ruling or decision regarding the appraisement or the 
    classification of any imported merchandise or regarding the duties, 
    fees, and taxes charged thereon,
        ``(2) the collection of any dues, charges, duties, fees, and 
    taxes on or on account of any imported merchandise, or
        ``(3) any other matter or thing as to which any person might 
    under this Act be entitled to protest or appeal from the decision of 
    such officer.''.

SEC. 645. PROTESTS.

    Section 514 (19 U.S.C. 1514) is amended--
        (1) by amending subsection (a)--
            (A) by striking out ``appropriate customs officer'' in the 
        text preceding paragraph (1) and inserting ``Customs Service'',
            (B) by inserting ``or reconciliation as to the issues 
        contained therein,'' after ``entry,'' in paragraph (5),
            (C) by striking out ``and'' and inserting ``or'' at the end 
        of paragraph (6),
            (D) by striking out the comma at the end of paragraph (7) 
        and inserting a semicolon, and
            (E) by striking out ``appropriate customs officer, who'' in 
        the text following paragraph (7) and inserting ``Customs 
        Service, which'';
        (2) by amending subsection (b) by striking out ``appropriate 
    customs officer'' and inserting ``Customs Service'';
        (3) by amending the first sentence of subsection (c)(1) to read 
    as follows: ``A protest of a decision made under subsection (a) 
    shall be filed in writing, or transmitted electronically pursuant to 
    an electronic data interchange system, in accordance with 
    regulations prescribed by the Secretary. A protest must set forth 
    distinctly and specifically--
            ``(A) each decision described in subsection (a) as to which 
        protest is made;
            ``(B) each category of merchandise affected by each decision 
        set forth under paragraph (1);
            ``(C) the nature of each objection and the reasons therefor; 
        and
            ``(D) any other matter required by the Secretary by 
        regulation.'';
        (4) by redesignating paragraph (2) of subsection (c) as 
    paragraph (3) and by striking out ``such customs officer'' in such 
    redesignated paragraph and inserting ``the Customs Service'';
        (5) by designating the last sentence of paragraph (1) of 
    subsection (c) as paragraph (2);
        (6) by striking out ``customs officer'' in subsection (d) and 
    inserting ``Customs Service''; and
        (7) by amending the section heading to read as follows:

``SEC. 514. PROTEST AGAINST DECISIONS OF THE CUSTOMS SERVICE.''.

SEC. 646. REFUNDS AND ERRORS.

    Section 520 (19 U.S.C. 1520) is amended--
        (1) by inserting ``or reconciliation'' after ``entry'' in 
    paragraphs (1) and (4) of subsection (a); and
        (2) by amending subsection (c)--
            (A) by striking out ``appropriate customs officer'' wherever 
        it appears and inserting ``Customs Service'',
            (B) by inserting ``or reconciliation'' after ``reliquidate 
        an entry'', and
            (C) by inserting ``, whether or not resulting from or 
        contained in electronic transmission,'' after ``inadvertence'' 
        the first place it appears in paragraph (1).

SEC. 647. BONDS AND OTHER SECURITY.

    Section 623 (19 U.S.C. 1623) is amended--
        (1) by inserting ``and the manner in which the bond may be filed 
    with or, pursuant to an authorized electronic data interchange 
    system, transmitted to the Customs Service'' after ``form of such 
    bond'' in subsection (b)(1); and
        (2) by inserting at the end of subsection (d) the following new 
    sentence: ``Any bond transmitted to the Customs Service pursuant to 
    an authorized electronic data interchange system shall have the same 
    force and effect and be binding upon the parties thereto as if such 
    bond were manually executed, signed, and filed.''.

SEC. 648. CUSTOMHOUSE BROKERS.

    Section 641 (19 U.S.C. 1641) is amended--
        (1) by adding at the end of subsection (a)(2) the following new 
    sentence: ``It also includes the preparation of documents or forms 
    in any format and the electronic transmission of documents, 
    invoices, bills, or parts thereof, intended to be filed with the 
    Customs Service in furtherance of such activities, whether or not 
    signed or filed by the preparer, or activities relating to such 
    preparation, but does not include the mere electronic transmission 
    of data received for transmission to Customs.'';
        (2) by amending subsection (c)(1) to read as follows:
        ``(1) In general.--Each person granted a customs broker's 
    license under subsection (b) shall be issued, in accordance with 
    such regulations as the Secretary shall prescribe, either or both of 
    the following:
            ``(A) A national permit for the conduct of such customs 
        business as the Secretary prescribes by regulation.
            ``(B) A permit for each customs district in which that 
        person conducts customs business and, except as provided in 
        paragraph (2), regularly employs at least 1 individual who is 
        licensed under subsection (b)(2) to exercise responsible 
        supervision and control over the customs business conducted by 
        that person in that district.'';
        (3) by inserting at the end of subsection (c) the following new 
    paragraph:
        ``(4) Appointment of subagents.--Notwithstanding subsection 
    (c)(1), upon the implementation by the Secretary under section 
    413(b)(2) of the component of the National Customs Automation 
    Program referred to in section 411(a)(2)(B), a licensed broker may 
    appoint another licensed broker holding a permit in a customs 
    district to act on its behalf as its subagent in that district if 
    such activity relates to the filing of information that is permitted 
    by law or regulation to be filed electronically. A licensed broker 
    appointing a subagent pursuant to this paragraph shall remain liable 
    for any and all obligations arising under bond and any and all 
    duties, taxes, and fees, as well as any other liabilities imposed by 
    law, and shall be precluded from delegating to a subagent such 
    liability.'';
        (4) by amending subsection (d)(2)(B)--
            (A) by striking out ``appropriate customs officer'' and 
        inserting ``Customs Service'' in the first and third sentences,
            (B) by striking out ``he'' and inserting ``it'' in the third 
        sentence,
            (C) by striking out ``15 days'' and inserting ``30 days'' in 
        the third sentence,
            (D) by striking out ``the appropriate customs officer and 
        the customs broker; they'' and inserting ``the Customs Service 
        and the customs broker; which'' in the sixth sentence,
            (E) by striking out ``his'' and inserting ``the'' in the 
        seventh sentence, and
            (F) by striking out ``for his decision'' and inserting ``for 
        the decision'' in the eighth sentence; and
        (5) by amending subsection (f) by striking out ``United States 
    Customs Service.'' and inserting ``Customs Service. The Secretary 
    may not prohibit customs brokers from limiting their liability to 
    other persons in the conduct of customs business. For purposes of 
    this subsection or any other provision of this Act pertaining to 
    recordkeeping, all data required to be retained by a customs broker 
    may be kept on microfilm, optical disc, magnetic tapes, disks or 
    drums, video files or any other electrically generated medium. 
    Pursuant to such regulations as the Secretary shall prescribe, the 
    conversion of data to such storage medium may be accomplished at any 
    time subsequent to the relevant customs transaction and the data may 
    be retained in a centralized basis according to such broker's 
    business system.''.

SEC. 649. CONFORMING AMENDMENTS.

    (a) Place of Entry and Unlading.--Section 447 (19 U.S.C. 1447) is 
amended by striking out ``the appropriate customs officer shall 
consider'' and inserting ``the Customs Service considers''.
    (b) Unlading.--Section 449 (19 U.S.C. 1449) is amended by striking 
out ``appropriate customs officer of such port issues a permit for the 
unlading of such merchandise or baggage,'' and inserting ``Customs 
Service issues a permit for the unlading of such merchandise or baggage 
at such port,''.
     Subtitle C--Miscellaneous Amendments to the Tariff Act of 1930

SEC. 651. ADMINISTRATIVE EXEMPTIONS.

    Section 321 (19 U.S.C. 1321) is amended--
        (1) by amending subsection (a)(1)--
            (A) by striking out ``of less than $10'' and inserting ``of 
        an amount specified by the Secretary by regulation, but not less 
        than $20,'',
            (B) by inserting ``, fees,'' after ``duties'' wherever it 
        appears, and
            (C) by striking out ``and'' at the end thereof;
        (2) by amending subsection (a)(2)--
            (A) by striking out ``shall not exceed--'' and inserting 
        ``shall not exceed an amount specified by the Secretary by 
        regulation, but not less than--'',
            (B) by striking out ``$50'' and ``$100'' in subparagraph (A) 
        and inserting ``$100'' and ``$200'', respectively,
            (C) by striking out ``$25'' in subparagraph (B) and 
        inserting ``$200'',
            (D) by striking out ``$5'' in subparagraph (C) and inserting 
        ``$200'', and
            (E) by striking the period at the end thereof and inserting 
        ``; and'', and
        (3) by inserting a new paragraph (3) at the end of subsection 
    (a) to read as follows:
        ``(3) waive the collection of duties, fees, and taxes due on 
    entered merchandise when such duties, fees, or taxes are less than 
    $20 or such greater amount as may be specified by the Secretary by 
    regulation.''; and
        (4) by amending subsection (b)--
            (A) by striking out ``to diminish any dollar amount 
        specified in subsection (a) and''; and
            (B) by striking out ``such subsection'' wherever it appears 
        and inserting ``subsection (a)''.

SEC. 652. REPORT OF ARRIVAL.

    Section 433 (19 U.S.C. 1433) is amended--
        (1) by amending subsection (a)(1)--
            (A) by striking out ``or'' at the end of subparagraph (B),
            (B) by inserting ``or'' after the semicolon at the end of 
        subparagraph (C), and
            (C) by adding after subparagraph (C) the following:
            ``(D) any vessel which has visited a hovering vessel or 
        received merchandise while outside the territorial sea;'';
        (2) by striking out ``present to customs officers such'' in 
    subsection (d) and inserting ``present, or transmit pursuant to an 
    electronic data interchange system, to the Customs Service such 
    information, data,''; and
        (3) by amending subsection (e) to read as follows:
    ``(e) Prohibition on Departures and Discharge.--Unless otherwise 
authorized by law, a vessel, aircraft or vehicle after arriving in the 
United States or Virgin Islands may, but only in accordance with 
regulations prescribed by the Secretary--
        ``(1) depart from the port, place, or airport of arrival; or
        ``(2) discharge any passenger or merchandise (including 
    baggage).''.

SEC. 653. ENTRY OF VESSELS.

    Section 434 (19 U.S.C. 1434) is amended to read as follows:

``SEC. 434. ENTRY; VESSELS.

    ``(a) Formal Entry.--Within 24 hours (or such other period of time 
as may be provided under subsection (c)(2)) after the arrival at any 
port or place in the United States of--
        ``(1) any vessel from a foreign port or place;
        ``(2) any foreign vessel from a domestic port;
        ``(3) any vessel of the United States having on board bonded 
    merchandise or foreign merchandise for which entry has not been 
    made; or
        ``(4) any vessel which has visited a hovering vessel or has 
    delivered or received merchandise while outside the territorial sea;
the master of the vessel shall, unless otherwise provided by law, make 
formal entry at the nearest customs facility or such other place as the 
Secretary may prescribe by regulation.
    ``(b) Preliminary Entry.--The Secretary may by regulation permit the 
master to make preliminary entry of the vessel with the Customs Service 
in lieu of formal entry or before formal entry is made. In permitting 
preliminary entry, the Customs Service shall board a sufficient number 
of vessels to ensure compliance with the laws it enforces.
    ``(c) Regulations.--The Secretary may by regulation--
        ``(1) prescribe the manner and format in which entry under 
    subsection (a) or subsection (b), or both, must be made, and such 
    regulations may provide that any such entry may be made 
    electronically pursuant to an electronic data interchange system;
        ``(2) provide that--
            ``(A) formal entry must be made within a greater or lesser 
        time than 24 hours after arrival, but in no case more than 48 
        hours after arrival, and
            ``(B) formal entry may be made before arrival; and
        ``(3) authorize the Customs Service to permit entry or 
    preliminary entry of any vessel to be made at a place other than a 
    designated port of entry, under such conditions as may be 
    prescribed.''.

SEC. 654. UNLAWFUL RETURN OF FOREIGN VESSEL PAPERS.

    Section 438 (19 U.S.C. 1438) is amended--
        (1) by striking out ``section 435'' and inserting ``section 
    434'';
        (2) by inserting ``, or regulations issued thereunder,'' after 
    ``of this Act''; and
        (3) by striking out ``the appropriate customs officer of the 
    port where such vessel has been entered.'' and inserting ``the 
    Customs Service in the port in which such vessel has entered.''.

SEC. 655. VESSELS NOT REQUIRED TO ENTER.

    Section 441 (19 U.S.C. 1441) is amended--
        (1) by amending the text preceding paragraph (1) to read as 
    follows: ``The following vessels shall not be required to make entry 
    under section 434 or to obtain clearance under section 4197 of the 
    Revised Statutes of the United States (46 U.S.C. App. 91):'';
        (2) by amending paragraph (3) to read as follows:
    ``(3) Any vessel carrying passengers on excursion from the United 
States Virgin Islands to the British Virgin Islands and returning, if--
        ``(A) the vessel does not in any way violate the customs or 
    navigation laws of the United States;
        ``(B) the vessel has not visited any hovering vessel; and
        ``(C) the master of the vessel, if there is on board any article 
    required by law to be entered, reports the article to the Customs 
    Service immediately upon arrival.'';
        (3) by redesignating paragraphs (4) and (5) as paragraphs (5) 
    and (6), respectively, and inserting after paragraph (3) the 
    following:
    ``(4) Any United States documented vessel with recreational 
endorsement or any undocumented United States pleasure vessel not 
engaged in trade, if--
        ``(A) the vessel complies with the reporting requirements of 
    section 433, and with the customs and navigation laws of the United 
    States;
        ``(B) the vessel has not visited any hovering vessel; and
        ``(C) the master of, and any other person on board, the vessel, 
    if the master or such person has on board any article required by 
    law to be entered or declared, reports such article to the Customs 
    Service immediately upon arrival;'';
        (4) by amending paragraph (6) (as so redesignated) by striking 
    out ``enrolled and licensed to engage in the foreign and coasting 
    trade in the northern, northeastern, and northwestern frontiers'' 
    and inserting ``documented under chapter 121 of title 46, United 
    States Code, with a Great Lakes endorsement''; and
        (5) by amending the section heading to read as follows:
``SEC. 441. EXCEPTIONS TO VESSEL ENTRY AND CLEARANCE REQUIREMENTS.''.

SEC. 656. UNLADING.

    Section 448(a) (19 U.S.C. 1448(a)) is amended--
        (1) by amending the first sentence--
            (A) by striking out ``enter)'' and inserting ``enter or 
        clear)'',
            (B) by striking out ``or vehicle arriving from a foreign 
        port or place'' and inserting ``required to make entry under 
        section 434, or vehicle required to report arrival under section 
        433,'',
            (C) by inserting ``or transmitted pursuant to an electronic 
        data interchange system'' after ``issued'', and
            (D) by striking out the colon after ``officer'' and the 
        proviso and inserting a period;
        (2) by amending the second sentence--
            (A) by striking out ``, preliminary or otherwise,'', and
            (B) by inserting ``, electronically pursuant to an 
        authorized electronic data interchange system or otherwise,'' 
        after ``may issue a permit'';
        (3) by striking out the last sentence and inserting the 
    following: ``The owner or master of any vessel or vehicle, or agent 
    thereof, shall notify the Customs Service of any merchandise or 
    baggage so unladen for which entry is not made within the time 
    prescribed by law or regulation. The Secretary shall by regulation 
    prescribe administrative penalties not to exceed $1,000 for each 
    bill of lading for which notice is not given. Any such 
    administrative penalty shall be subject to mitigation and remittance 
    under section 618. Such unentered merchandise or baggage shall be 
    the responsibility of the master or person in charge of the 
    importing vessel or vehicle, or agent thereof, until it is removed 
    from the carrier's control in accordance with section 490.''; and
        (4) by striking out ``the appropriate customs officer'' and 
    ``such customs officer'' wherever they appear and inserting ``the 
    Customs Service''.

SEC. 657. DECLARATIONS.

    Section 485 (19 U.S.C. 1485) is amended--
        (1) by amending subsection (a)--
            (A) by inserting ``or transmit electronically'' after 
        ``file'', and
            (B) by inserting ``and manner'' after ``form'';
        (2) by amending subsection (d)--
            (A) by striking out ``A importer'' and inserting ``An 
        importer'', and
            (B) by striking out ``a importer'' and inserting ``an 
        importer''; and
        (3) by inserting after subsection (f) the following new 
    subsection:
    ``(g) Exported Merchandise Returned as Undeliverable.--With respect 
to any importation of merchandise to which General Headnote 4(e) of the 
Harmonized Tariff Schedule of the United States applies, any person who 
gained any benefit from, or met any obligation to, the United States as 
a result of the prior exportation of such merchandise shall, in 
accordance with regulations prescribed by the Secretary, within a 
reasonable time inform the Customs Service of the return of the 
merchandise.''.

SEC. 658. GENERAL ORDERS.

    Section 490 (19 U.S.C. 1490) is amended--
        (1) by amending subsection (a) to read as follows:
    ``(a) Incomplete Entry.--
        ``(1) Whenever--
            ``(A) the entry of any imported merchandise is not made 
        within the time provided by law or by regulation prescribed by 
        the Secretary;
            ``(B) the entry of imported merchandise is incomplete 
        because of failure to pay the estimated duties, fees, or 
        interest;
            ``(C) in the opinion of the Customs Service, the entry of 
        imported merchandise cannot be made for want of proper documents 
        or other cause; or
            ``(D) the Customs Service believes that any merchandise is 
        not correctly and legally invoiced;
    the carrier (unless subject to subsection (c)) shall notify the 
    bonded warehouse of such unentered merchandise.
        ``(2) After notification under paragraph (1), the bonded 
    warehouse shall arrange for the transportation and storage of the 
    merchandise at the risk and expense of the consignee. The 
    merchandise shall remain in the bonded warehouse until--
            ``(A) entry is made or completed and the proper documents 
        are produced;
            ``(B) the information and data necessary for entry are 
        transmitted to the Customs Service pursuant to an authorized 
        electronic data interchange system; or
            ``(C) a bond is given for the production of documents or the 
        transmittal of data.'';
        (2) by amending subsection (b)--
            (A) by amending the heading for subsection (b) to read as 
        follows:
    ``(b) Request for Possession by Customs.--'', and
            (B) by striking out ``appropriate customs officer'' and 
        inserting ``Customs Service''; and
        (3) by adding at the end the following new subsection:
    ``(c) Government Merchandise.--Any imported merchandise that--
        ``(1) is described in any of paragraphs (1) through (4) of 
    subsection (a); and
        ``(2) is consigned to, or owned by, the United States 
    Government;
shall be stored and disposed of in accordance with such rules and 
procedures as the Secretary shall by regulation prescribe.''.

SEC. 659. UNCLAIMED MERCHANDISE.

    Section 491 (19 U.S.C. 1491) is amended--
        (1) by amending subsection (a)--
            (A) by striking out ``customs custody for one year'' in the 
        first sentence and inserting ``in a bonded warehouse pursuant to 
        section 490 for 6 months'',
            (B) by striking out ``public store or bonded warehouse for a 
        period of one year'' in the second sentence and inserting 
        ``pursuant to section 490 in a bonded warehouse for 6 months'',
            (C) by striking out ``estimated duties and storage'' in the 
        first sentence and inserting ``estimated duties, taxes, fees, 
        interest, storage,'',
            (D) by inserting ``taxes, fees, interest,'' after 
        ``duties,'' wherever it appears, and
            (E) by striking out ``duties'' in the last sentence and 
        inserting ``duties, taxes, interest, and fees''; and
        (2) by redesignating subsection (b) as subsection (e) and 
    inserting after subsection (a) the following new subsections:
    ``(b) Notice of Title Vesting in the United States.--At the end of 
the 6-month period referred to in subsection (a), the Customs Service 
may, in lieu of sale of the merchandise, provide notice to all known 
interested parties that the title to such merchandise shall be 
considered to vest in the United States free and clear of any liens or 
encumbrances, on the 30th day after the date of the notice unless, 
before such 30th day--
        ``(1) the subject merchandise is entered or withdrawn for 
    consumption; and
        ``(2) payment is made of all duties, taxes, fees, transfer and 
    storage charges, and other expenses that may have accrued thereon.
    ``(c) Retention, Transfer, Destruction, or Other Disposition.--If 
title to any merchandise vests in the United States by operation of 
subsection (b), such merchandise may be retained by the Customs Service 
for official use, transferred to any other Federal agency or to any 
State or local agency, destroyed, or otherwise disposed of in accordance 
with such regulations as the Secretary shall prescribe. All transfer and 
storage charges or expenses accruing on retained or transferred 
merchandise shall be paid by the receiving agency.
    ``(d) Petition.--Whenever any party, having lost a substantial 
interest in merchandise by virtue of title vesting in the United States 
under subsection (b), can establish such title or interest to the 
satisfaction of the Secretary within 30 days after the day on which 
title vests in the United States under subsection (b), or can establish 
to the satisfaction of the Secretary that the party did not receive 
notice under subsection (b), the Secretary may, upon receipt of a timely 
and proper petition and upon finding that the facts and circumstances 
warrant, pay such party out of the Treasury of the United States the 
amount the Secretary believes the party would have received under 
section 493 had the merchandise been sold and a proper claim filed. The 
decision of the Secretary with respect to any such petition is final and 
conclusive on all parties.''; and
        (3) by amending subsection (e) (as so redesignated) by striking 
    out ``appropriate customs officer'' in paragraph (3) and inserting 
    ``Customs Service''.

SEC. 660. DESTRUCTION OF MERCHANDISE.

    Section 492 (19 U.S.C. 1492) is amended--
        (1) by inserting ``, retained for official use, or otherwise 
    disposed of'' after ``destroyed''; and
        (2) by striking out ``appropriate customs officer'' and 
    inserting ``Customs Service''.

SEC. 661. PROCEEDS OF SALE.

    Section 493 (19 U.S.C. 1493) is amended--
        (1) by inserting ``taxes, and fees,'' after ``duties,'';
        (2) by striking out ``by the appropriate customs officer''; and
        (3) by striking out ``such customs officer'' and inserting ``the 
    Customs Service''.

SEC. 662. ENTRY UNDER REGULATIONS.

    Section 498(a) (19 U.S.C. 1498(a)) is amended--
        (1) by amending paragraph (1) to read as follows:
        ``(1) Merchandise, when--
            ``(A) the aggregate value of the shipment does not exceed an 
        amount specified by the Secretary by regulation, but not more 
        than $2,500; or
            ``(B) different commercial facilitation and risk 
        considerations that may vary for different classes or kinds of 
        merchandise or different classes of transactions may dictate;''; 
        and
        (2) by striking out ``$10,000'' in paragraph (2) and inserting 
    ``such amounts as the Secretary may prescribe''.

SEC. 663. AMERICAN TRADEMARKS.

    Section 526(e)(3) (19 U.S.C. 1526(e)(3)) is amended--
        (1) by striking out ``1 year'' and inserting ``90 days''; and
        (2) by striking out ``appropriate customs officers'' and 
    inserting ``the Customs Service''.
    SEC. 664. SIMPLIFIED RECORDKEEPING FOR MERCHANDISE TRANSPORTED BY 
      PIPELINE.
    Part IV of title IV is amended by inserting after section 553 the 
following new section:

``SEC. 553A. RECORDKEEPING FOR MERCHANDISE TRANSPORTED BY PIPELINE.

    ``Merchandise in Customs custody that is transported by pipeline may 
be accounted for on a quantitative basis, based on the bill of lading, 
or equivalent document of receipt, issued by the pipeline carrier. 
Unless the Customs Service has reasonable cause to suspect fraud, the 
Customs Service may accept the bill of lading, or equivalent document of 
receipt, issued by the pipeline carrier to the shipper and accepted by 
the consignee to maintain identity. The shipper, pipeline operator, and 
consignee shall be subject to the recordkeeping requirements of sections 
508 and 509.''.

SEC. 665. ENTRY FOR WAREHOUSE.

    Section 557(a) (19 U.S.C. 1557(a)) is amended--
        (1) by designating the first 2 sentences of such subsection as 
    paragraph (1);
        (2) by striking out in such paragraph (1) (as so designated) ``: 
    Provided, That the total period of time for which such merchandise 
    may remain in bonded warehouse shall not exceed 5 years from the 
    date of importation.'' and inserting the following: ``; except 
    that--
        ``(A) the total period of time for which such merchandise may 
    remain in bonded warehouse shall not exceed 5 years from the date of 
    importation; and
        ``(B) turbine fuel may be withdrawn for use under section 309 
    without the payment of duty if an amount equal to the quantity of 
    fuel withdrawn is shown to be used within 30 days after the day of 
    withdrawal, but duties (together with interest payable from the date 
    of the withdrawal at the rate of interest established under section 
    6621 of title 26, United States Code) shall be deposited by the 40th 
    day after the day of withdrawal on fuel that was withdrawn in excess 
    of the quantity shown to have been so used during such 30-day 
    period.''; and
        (3) by designating the remaining sentences of such subsection as 
    paragraph (2).

SEC. 666. CARTAGE.

    The first sentence of section 565 (19 U.S.C. 1565) is amended to 
read as follows: ``The cartage of merchandise entered for warehouse 
shall be done by--
        ``(1) cartmen appointed and licensed by the Customs Service; or
        ``(2) carriers designated under section 551 to carry bonded 
    merchandise;
who shall give bond, in a penal sum to be fixed by the Customs Service, 
for the protection of the Government against any loss of, or damage to, 
the merchandise while being so carted.''.

SEC. 667. SEIZURE.

    Section 612 (19 U.S.C. 1612) is amended--
        (1) by amending subsection (a)--
            (A) by striking out ``the appropriate customs officer'', 
        ``such officer'' and ``the customs officer'' wherever they 
        appear and inserting ``the Customs Service'', and
            (B) by striking out ``the appraiser's return and his'' and 
        inserting ``its''; and
        (2) by amending subsection (b) to read as follows:
    ``(b) If the Customs Service determines that the expense of keeping 
the vessel, vehicle, aircraft, merchandise, or baggage is 
disproportionate to the value thereof, the Customs Service may promptly 
order the destruction or other appropriate disposition of such property 
under regulations prescribed by the Secretary. No customs officer shall 
be liable for the destruction or other disposition of property made 
pursuant to this section.''.

SEC. 668. LIMITATION ON ACTIONS.

    Section 621 (19 U.S.C. 1621) is amended--
        (1) by inserting ``any duty under section 592(d), 593A(d), or'' 
    before ``any pecuniary penalty''; and
        (2) by striking out ``discovered:'' and all that follows 
    thereafter and inserting the following: ``discovered; except that--
        ``(1) in the case of an alleged violation of section 592 or 
    593A, no suit or action (including a suit or action for restoration 
    of lawful duties under subsection (d) of such sections) may be 
    instituted unless commenced within 5 years after the date of the 
    alleged violation or, if such violation arises out of fraud, within 
    5 years after the date of discovery of fraud, and
        ``(2) the time of the absence from the United States of the 
    person subject to the penalty or forfeiture, or of any concealment 
    or absence of the property, shall not be reckoned within the 5-year 
    period of limitation.''.

SEC. 669. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

    The Tariff Act of 1930 is amended by inserting after section 528 the 
following new section:

``SEC. 529. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

    ``The Customs Service shall be reimbursed from the fees collected 
for the cost and expense, administrative and otherwise, incurred in 
collecting any fees on behalf of any government agency for any 
reason.''.

SEC. 670. AUTHORITY TO SETTLE CLAIMS.

    The Tariff Act of 1930 is amended by inserting after section 629 the 
following new section:

``SEC. 630. AUTHORITY TO SETTLE CLAIMS.

    ``(a) In General.--With respect to a claim that cannot be settled 
under chapter 171 of title 28, United States Code, the Secretary may 
settle, for not more than $50,000 in any one case, a claim for damage 
to, or loss of, privately owned property caused by an investigative or 
law enforcement officer (as defined in section 2680(h) of title 28, 
United States Code) who is employed by the Customs Service and acting 
within the scope of his or her employment.
    ``(b) Limitations.--The Secretary may not pay a claim under 
subsection (a) that--
        ``(1) concerns commercial property;
        ``(2) is presented to the Secretary more than 1 year after it 
    occurs; or
        ``(3) is presented by an officer or employee of the United 
    States Government and arose within the scope of employment.
    ``(c) Final Settlement.--A claim may be paid under this section only 
if the claimant accepts the amount of settlement in complete 
satisfaction of the claim.''.

SEC. 671. USE OF PRIVATE COLLECTION AGENCIES.

    The Tariff Act of 1930 is amended by inserting after section 630 the 
following new section:

``SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.

    ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary, under such terms and conditions as the Secretary considers 
appropriate, shall enter into contracts and incur obligations with one 
or more persons for collection services to recover indebtedness arising 
under the customs laws and owed the United States Government, but only 
after the Customs Service has exhausted all administrative efforts, 
including all claims against applicable surety bonds, to collect the 
indebtedness.
    ``(b) Contract Requirements.--Any contract entered into under 
subsection (a) shall provide that--
        ``(1) the Secretary retains the authority to resolve a dispute, 
    compromise a claim, end collection action, and refer a matter to the 
    Attorney General to bring a civil action; and
        ``(2) the person is subject to--
            ``(A) section 552a of title 5, United States Code, to the 
        extent provided in subsection (m) of such section; and
            ``(B) laws and regulations of the United States Government 
        and State governments related to debt collection practices.''.
 Subtitle D--Miscellaneous Provisions and Consequential and Conforming 
                        Amendments to Other Laws

SEC. 681. AMENDMENTS TO THE HARMONIZED TARIFF SCHEDULE.

    (a) Return Shipments.--General Note 4 of the Harmonized Tariff 
Schedule of the United States is amended--
        (1) by striking out ``and'' at the end of subdivision (c);
        (2) by inserting ``and'' after ``1930,'' in subdivision (d);
        (3) by inserting after subdivision (d) the following:
        ``(e) articles exported from the United States which are 
    returned within 45 days after such exportation from the United 
    States as undeliverable and which have not left the custody of the 
    carrier or foreign customs service,''; and
        (4) by adding at the end the following new sentence: ``No 
    exportation referred to in subdivision (e) may be treated as 
    satisfying any requirement for exportation in order to receive a 
    benefit from, or meet an obligation to, the United States as a 
    result of such exportation.''.
    (b) Entry Not Required for Locomotives and Railway Freight Cars.--
        (1) The Notes to chapter 86 of such Schedule are amended by 
    inserting after note 3 the following new note:
``4. Railway locomotives (provided for in headings 8601 and 8602) and 
railway freight cars (provided for in heading 8606) on which no duty is 
owed are not subject to the entry or release requirements for imported 
merchandise set forth in sections 448 and 484 of the Tariff Act of 1930. 
The Secretary of the Treasury may by regulation establish appropriate 
reporting requirements, including the requirement that a bond be posted 
to ensure compliance.''.
        (2) The U.S. Notes to subchapter V of chapter 99 of such 
    Schedule are amended by inserting after note 8 the following new 
    note:
``9. Railway freight cars provided for in subheadings 9905.86.05 and 
9905.86.10 are not subject to the entry or release requirements for 
imported merchandise set forth in sections 448 and 484 of the Tariff Act 
of 1930. The Secretary of the Treasury may by regulation establish 
appropriate reporting requirements, including the requirement that a 
bond be posted to ensure compliance.''.
    (c) Instruments of International Traffic.--The U.S. Notes to 
subchapter III of chapter 98 of such Schedule is amended by inserting 
after note 3 the following new note:
``4. Instruments of international traffic, such as containers, lift 
vans, rail cars and locomotives, truck cabs and trailers, etc. are 
exempt from formal entry procedures but are required to be accounted for 
when imported and exported into and out of the United States, 
respectively, through the manifesting procedures required for all 
international carriers by the United States Customs Service. Fees 
associated with the importation of such instruments of international 
traffic shall be reported and paid on a periodic basis as required by 
regulations issued by the Secretary of the Treasury and in accordance 
with 1956 Customs Convention on Containers (20 UST 30; TIAS 6634).''.

SEC. 682. CUSTOMS PERSONNEL AIRPORT WORK SHIFT REGULATION.

    Section 13031(g) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(g)) is amended--
        (1) by striking out ``In addition to the regulations required 
    under paragraph (2), the'' and inserting ``The'';
        (2) by striking out paragraph (2); and
        (3) by redesignating paragraph (3) as paragraph (2).
    SEC. 683. USE OF HARBOR MAINTENANCE TRUST FUND AMOUNTS FOR 
      ADMINISTRATIVE EXPENSES.
    (a) In General.--Paragraph (3) of section 9505(c) of the Internal 
Revenue Code of 1986 (relating to expenditures from Harbor Maintenance 
Trust Fund) is amended to read as follows:
        ``(3) for the payment of all expenses of administration incurred 
    by the Department of the Treasury, the Army Corps of Engineers, and 
    the Department of Commerce related to the administration of 
    subchapter A of chapter 36 (relating to harbor maintenance tax), but 
    not in excess of $5,000,000 for any fiscal year.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to fiscal years beginning after the date of the enactment of this 
Act.

SEC. 684. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

    (a) Amendments Relating to Accreditation of Private Laboratories.--
Title 28 of the United States Code is amended as follows:
        (1) Section 1581(g) is amended by--
            (A) striking out ``and'' at the end of paragraph (1);
            (B) by striking out the period at the end of paragraph (2) 
        and inserting ``; and''; and
            (C) by adding at the end the following:
        ``(3) any decision or order of the Customs Service to deny, 
    suspend, or revoke accreditation of a private laboratory under 
    section 499(b) of the Tariff Act of 1930.''.
        (2) Section 2631(g) is amended by inserting at the end the 
    following new paragraph:
    ``(3) A civil action to review any decision or order of the Customs 
Service to deny, suspend, or revoke accreditation of a private 
laboratory under section 499(b) of the Tariff Act of 1930 may be 
commenced in the Court of International Trade by the person whose 
accreditation was denied, suspended, or revoked.''.
        (3) Section 2636 is amended--
            (A) by redesignating subsection (h) as subsection (i); and
            (B) by inserting after subsection (g) the following new 
        subsection:
    ``(h) A civil action contesting the denial, suspension, or 
revocation by the Customs Service of a private laboratory's 
accreditation under section 499(b) of the Tariff Act of 1930 is barred 
unless commenced in accordance with the rules of the Court of 
International Trade within 60 days after the date of the decision or 
order of the Customs Service.''.
        (4) Section 2640 is amended--
            (A) by redesignating subsection (d) as subsection (e); and
            (B) by inserting after subsection (c) the following new 
        subsection:
    ``(d) In any civil action commenced to review any order or decision 
of the Customs Service under section 499(b) of the Tariff Act of 1930, 
the court shall review the action on the basis of the record before the 
Customs Service at the time of issuing such decision or order.''.
        (5) Section 2642 is amended by inserting before the period the 
    following: ``or laboratories accredited by the Customs Service under 
    section 499(b) of the Tariff Act of 1930''.
    (b) Application of Subsection (a) Amendments.--For purposes of 
applying the amendments made by subsection (a), any decision or order of 
the Customs Service denying, suspending, or revoking the accreditation 
of a private laboratory on or after the date of the enactment of this 
Act and before regulations to implement section 499(b) of the Tariff Act 
of 1930 are issued shall be treated as having been denied, suspended, or 
revoked under such section 499(b).
    (c) Jurisdiction of Court.--Section 1582(1) of title 28, United 
States Code, is amended by inserting ``593A,'' after ``592,''.
    (d) Filing of Official Documents.--Section 2635(a) of title 28, 
United States Code, is amended to read as follows:
    ``(a) In any action commenced in the Court of International Trade 
contesting the denial of a protest under section 515 of the Tariff Act 
of 1930 or the denial of a petition under section 516 of such Act, the 
Customs Service, as prescribed by the rules of the court, shall file 
with the clerk of the court, as part of the official record, any 
document, paper, information or data relating to the entry of 
merchandise and the administrative determination that is the subject of 
the protest or petition.''.

SEC. 685. TREASURY FORFEITURE FUND.

    Section 9703 of title 31, United States Code (as added by Public Law 
102-393), is amended--
        (1) by redesignating subparagraphs (E), (F), (G), (H), and (I) 
    of subsection (a)(2) as subparagraphs (F), (G), (H), (I), and (J), 
    respectively;
        (2) by inserting after subparagraph (D) of subsection (a)(2) the 
    following new subparagraph:
            ``(E) the payment of claims against employees of the Customs 
        Service settled by the Secretary under section 630 of the Tariff 
        Act of 1930;''; and
        (3) by striking out ``shall'' the first place it appears in 
    subsection (e) and inserting ``may''.
    SEC. 686. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED STATES.
    (a) Technical Amendments.--The Revised Statutes of the United States 
are amended as follows:
        (1) Section 2793 (19 U.S.C. 288, 46 U.S.C. App. 111, 123) is 
    amended--
            (A) by striking out ``Enrolled or licensed vessels engaged 
        in the foreign and coasting trade on the northern, northeastern, 
        and northwestern frontiers of the United States,'' and inserting 
        ``Documented vessels with a coastwise, Great Lakes 
        endorsement,''; and
            (B) by striking out the first semicolon and all the text 
        that follows thereafter and inserting a period.
        (2) Section 3126 (19 U.S.C. 293) is amended--
            (A) by striking out ``Any vessel, on being duly registered 
        in pursuance of the laws of the United States,'' and inserting 
        ``Any United States documented vessel with a registry or 
        coastwise endorsement, or both'' and
            (B) by striking out all the text occurring after the first 
        sentence.
        (3) Section 3127 (19 U.S.C. 294) is amended by striking out ``in 
    registered vessels'' and inserting ``a United States documented 
    vessel with a registry or coastwise endorsement, or both,''.
        (4) Section 4136 (46 U.S.C. App. 14) is amended by striking 
    out--
            (A) ``The Secretary of Commerce may issue a register or 
        enrollment'' and inserting ``The Secretary of Transportation may 
        issue a certificate of documentation with a coastwise 
        endorsement''; and
            (B) ``Secretary of Commerce,'' and inserting ``Secretary of 
        Transportation,''.
        (5) Section 4336 (46 U.S.C. App. 277) is amended--
            (A) by striking out ``register or enrollment or license of 
        any vessel'' and inserting ``certificate of documentation of any 
        documented vessel''; and
            (B) by striking out ``Secretary of the Treasury is not 
        required to have its register or enrollment or license'' and 
        inserting ``Secretary of Transportation is not required to have 
        its certificate of documentation''.
    (b) Clearance Requirements.--Section 4197 of such Revised Statutes 
(46 U.S.C. App. 91) is amended to read as follows:

``SEC. 4197. CLEARANCE; VESSELS.

    ``(a) When Required; Vessels of the United States.--Except as 
otherwise provided by law, any vessel of the United States shall obtain 
clearance from the Customs Service before proceeding from a port or 
place in the United States--
        ``(1) for a foreign port or place;
        ``(2) for another port or place in the United States if the 
    vessel has on board bonded merchandise or foreign merchandise for 
    which entry has not been made; or
        ``(3) outside the territorial sea to visit a hovering vessel or 
    to receive merchandise while outside the territorial sea.
    ``(b) When Required; Other Vessels.--Except as otherwise provided by 
law, any vessel that is not a vessel of the United States shall obtain 
clearance from the Customs Service before proceeding from a port or 
place in the United States--
        ``(1) for a foreign port or place;
        ``(2) for another port or place in the United States; or
        ``(3) outside the territorial sea to visit a hovering vessel or 
    to receive or deliver merchandise while outside the territorial sea.
    ``(c) Regulations.--The Secretary of the Treasury may by 
regulation--
        ``(1) prescribe the manner in which clearance under this section 
    is to be obtained, including the documents, data or information 
    which shall be submitted or transmitted, pursuant to an authorized 
    data interchange system, to obtain the clearance;
        ``(2) permit the Customs Service to grant clearance for a vessel 
    under this section before all requirements for clearance are 
    complied with, but only if the owner or operator of the vessel files 
    a bond in an amount set by the Secretary of the Treasury conditioned 
    upon the compliance by the owner or operator with all specified 
    requirements for clearance within a time period (not exceeding 4 
    business days) established by the Secretary of the Treasury; and
        ``(3) authorize the Customs Service to permit clearance of any 
    vessel to be obtained at a place other than a designated port of 
    entry, under such conditions as he may prescribe.''.

SEC. 687. AMENDMENTS TO TITLE 18, UNITED STATES CODE.

    Section 965(a) of title 18, United States Code, is amended--
        (1) by striking out ``sections 91, 92, and 94 of Title 46'' and 
    inserting ``section 431 of the Tariff Act of 1930 (19 U.S.C. 1431) 
    and section 4197 of the Revised Statutes of the United States (46 
    U.S.C. App. 91),'';
        (2) by striking out ``the collector of customs for the district 
    wherein such vessel is then located'' and inserting ``the Customs 
    Service''; and
        (3) by striking out ``the collector like'' and inserting in lieu 
    thereof ``the Customs Service like''.
    SEC. 688. AMENDMENT TO THE ACT TO PREVENT POLLUTION FROM SHIPS.
    Section 9(e) of the Act to Prevent Pollution from Ships (94 Stat. 
2301, 33 U.S.C. 1908(e)) is amended by striking out ``shall refuse or 
revoke'' and all of the text following thereafter and inserting ``shall 
refuse or revoke the clearance required by section 4197 of the Revised 
Statutes of the United States (46 U.S.C. App. 91). Clearance may be 
granted upon the filing of a bond or other surety satisfactory to the 
Secretary.''.

SEC. 689. MISCELLANEOUS TECHNICAL AMENDMENTS.

    (a) Act of October 3, 1913.--The Act of October 3, 1913, is 
amended--
        (1) in section IV, J, subsection 1 (19 U.S.C. 128) by striking 
    out ``registered as a vessel of the United States,'' and inserting 
    ``documented under chapter 121 of title 46, United States Code,''; 
    and
        (2) in section IV, J, subsection 3 (19 U.S.C. 131)--
            (A) by striking out ``vessels of the United States'' and 
        inserting ``United States documented vessels''; and
            (B) by striking out ``registered as a vessel of the United 
        States.'' and inserting ``documented under chapter 121 of title 
        46, United States Code.''.
    (b) Act of August 5, 1935.--Section 4 of the Act of August 5, 1935 
(19 U.S.C. 1704) is amended--
        (1) by striking out ``whenever the collector of customs of the 
    district in which any vessel is, or is sought to be, registered, 
    enrolled, licensed, or numbered,'' and inserting ``when the 
    Secretary of Transportation'';
        (2) by striking out ``such collector'' and inserting ``the 
    Secretary of Transportation'';
        (3) by striking out ``said collector shall revoke the registry, 
    enrollment, license, or number of such vessel'' and inserting ``the 
    Secretary of Transportation shall revoke any endorsement on the 
    vessel's certificate of documentation or number (when the Secretary 
    is the authority issuing the number under chapter 123 of title 46, 
    United States Code)''; and
        (4) by striking out ``Such collector and all persons'' and 
    inserting ``The Secretary of Transportation and all persons''.
    (c) Act of November 6, 1966.--Sections 2(e) and 3(e) of the Act of 
November 6, 1966 (46 U.S.C. App. 817d(e) and 817e(e)) are each amended--
        (1) by striking out ``The collector of customs at'' and 
    inserting ``At''; and
        (2) by inserting ``, the Customs Service'' after ``subsection 
    (a) of this section''.

SEC. 690. REPEAL OF OBSOLETE PROVISIONS OF LAW.

    (a) Revised Statutes.--The following provisions of the Revised 
Statutes of the United States are repealed:
        (1) So much of section 2792 as is codified at 19 U.S.C. 289 and 
    46 U.S.C. App. 110 and 112 (as in effect on the date of the 
    enactment of this Act).
        (2) Section 3111 (19 U.S.C. 282).
        (3) Section 3118 (19 U.S.C. 286).
        (4) Section 3119 (19 U.S.C. 287).
        (5) Section 3122 (19 U.S.C. 290).
        (6) Section 3124 (19 U.S.C. 291).
        (7) Section 3125 (19 U.S.C. 292).
        (8) Section 4198 (46 U.S.C. App. 94).
        (9) Section 4199 (46 U.S.C. App. 93).
        (10) Section 4201 (46 U.S.C. App. 96).
        (11) Section 4207.
        (12) Section 4208 (46 U.S.C. App. 102).
        (13) Section 4213 (46 U.S.C. App. 101).
        (14) So much of section 4221 as is codified at 46 U.S.C. App. 
    113 (as in effect on the date of the enactment of this Act).
        (15) Section 4222 (46 U.S.C. App. 126).
        (16) Sections 4306, 4307, and 4308 (46 U.S.C. App. 351 through 
    353).
        (17) Section 4332 (46 U.S.C. App. 274).
        (18) Section 4348 (46 U.S.C. App. 293).
        (19) Section 4358 (46 U.S.C. App. 306).
        (20) Section 4361 (46 U.S.C. App. 307).
        (21) Sections 4362 through 4369 (46 U.S.C. App. 308 through 
    315).
        (22) Sections 4573 through 4576 (46 U.S.C. App. 674 through 
    677).
    (b) Tariff Act of 1930.--The following sections of the Tariff Act of 
1930 are repealed:
        (1) Section 432 (19 U.S.C. 1432).
        (2) Section 435 (19 U.S.C. 1435).
        (3) Section 437 (19 U.S.C. 1437).
        (4) Section 439 (19 U.S.C. 1439).
        (5) Section 440 (19 U.S.C. 1440).
        (6) Sections 443, 444, and 445 (19 U.S.C. 1443, 1444, and 1445).
        (7) Section 465 (19 U.S.C. 1465).
        (8) Section 482 (19 U.S.C. 1482).
        (9) Section 583 (19 U.S.C. 1583).
        (10) Section 585 (19 U.S.C. 1585).
    (c) Miscellaneous Provisions.--The following provisions are 
repealed:
        (1) Section 1 of the Act of February 10, 1900 (46 U.S.C. App. 
    131).
        (2) Section 2 of the Act of April 29, 1908 (46 U.S.C. App. 127).
        (3) Section 1 of the Act of July 1, 1916 (46 U.S.C. App. 130).
        (4) Sections 1 and 2 of the Act of July 3, 1926 (46 U.S.C. App. 
    293a and 293b).
        (5) The last undesignated paragraph of section 201 of the Act of 
    August 5, 1935 (19 U.S.C. 1432a), is repealed.
        (6) The Act of June 16, 1937 (19 U.S.C. 1435b).
        (7) The Act of May 4, 1934 (46 U.S.C. App. 91a).
        (8) Section 1403(b) of the Water Resources Development Act of 
    1986 (Public Law 99-662; 26 U.S.C. 4461 note).

SEC. 691. REPORTS TO CONGRESS.

    (a) Antidumping and Countervailing Duty Collections.--The 
Commissioner of Customs shall before the 60th day of each fiscal year 
after fiscal year 1994 submit to Congress a report regarding the 
collection during the preceding fiscal year of duties imposed under the 
antidumping and countervailing duty laws.
    (b) CES Fee Report.--
        (1) Amendment.--Section 9501(c) of the Omnibus Budget 
    Reconciliation Act of 1987 (19 U.S.C. 3 note) is amended by adding 
    at the end the following new paragraph:
        ``(3) The Commissioner of Customs is authorized to obtain from 
    the operators of centralized cargo examination stations information 
    regarding the fees paid to them for the provision of services at 
    these stations.''.
        (2) Report.--Within 9 months after the date of the enactment of 
    this subsection, the Commissioner of Customs shall submit to the 
    Committees referred to in section 9501(c) of the Omnibus Budget 
    Reconciliation Act of 1987, a report setting forth--
            (A) an estimate of the aggregate amount of fees paid to 
        operators of centralized cargo examination stations during 
        fiscal year 1993; and
            (B) the variations, if any, among customs districts with 
        respect to the amounts of the fees charged for centralized cargo 
        examination station services.
    (c) Compliance With Customs Laws.--Section 123 of the Customs and 
Trade Act of 1990 (19 U.S.C. 2083) is amended--
        (1) by redesignating subsection (d) as subsection (e), and
        (2) by inserting after subsection (c) the following:
    ``(d) Compliance Program.--The Commissioner of Customs shall--
        ``(1) devise and implement a methodology for estimating the 
    level of compliance with the laws administered by the Customs 
    Service; and
        ``(2) include as an additional part of the report required to be 
    submitted under subsection (a) for each of fiscal years 1994, 1995, 
    and 1996, an evaluation of the extent to which such compliance was 
    obtained during the 12-month period preceding the 60th day before 
    each such fiscal year.''.
    (d) Courier Services Compliance Report.--The Commissioner of Customs 
shall initiate a compliance review of certain courier services which may 
not be eligible for benefits under the regulations of the Customs 
Service prescribed in part 128 of title 19 of the Code of Federal 
Regulations and shall submit a report to Congress on the results of such 
review within 1 year after the date of the enactment of this Act.

SEC. 692. EFFECTIVE DATE.

    This title takes effect on the date of the enactment of this Act.







                                Speaker of the House of Representatives.







                             Vice President of the United States and    
                                                President of the Senate.