[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3450 Reported in House (RH)]
Union Calendar No. 200
103d CONGRESS
1st Session
H. R. 3450
[Report No. 103-361, Parts I, II, and III]
_______________________________________________________________________
A BILL
To implement the North American Free Trade Agreement.
_______________________________________________________________________
November 15, 1993
The Committees on Agriculture, Foreign Affairs, Government Operations,
the Judiciary, and Public Works and Transportation discharged;
committed to the Committee of the Whole House on the State of the Union
Union Calendar No. 200
103d CONGRESS
1st Session
H. R. 3450
[Report No. 103-361, Parts I, II, and III]
To implement the North American Free Trade Agreement.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 4, 1993
Mr. Rostenkowski (as designee of the Majority Leader) (for himself and
Mr. Archer) (as designee of the Minority Leader) (by request)
introduced the following bill; which was referred jointly to the
following committees for a period ending not later than November 15,
1993: Ways and Means, Agriculture, Banking, Finance and Urban Affairs,
Energy and Commerce, Foreign Affairs, Government Operations, the
Judiciary, and Public Works and Transportation
November 15, 1993
Reported from the Committee on Ways and Means
November 15, 1993
Reported adversely from the Committee on Banking, Finance and Urban
Affairs
November 15, 1993
Reported from the Committee on Energy and Commerce
November 15, 1993
The Committees on Agriculture, Foreign Affairs, Government Operations,
the Judiciary, and Public Works and Transportation discharged;
committed to the Committee of the Whole House on the State of the Union
_______________________________________________________________________
A BILL
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 = ------------------- x 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 = ------------------- x 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 I 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 (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)'',
(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:
``Sec. 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:
``Sec. 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 means
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:
``Sec. 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 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 43 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 guarantees 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''
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 (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) 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.
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HR 3450 RH----22
HR 3450 RH----23
HR 3450 RH----24
HR 3450 RH----25
HR 3450 RH----26
HR 3450 RH----27
HR 3450 RH----28
HR 3450 RH----29
HR 3450 RH----30