    [Congressional Bills 103th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 5110 Engrossed in House (EH)]

    103d CONGRESS

      2d Session

                                   H. R. 5110

    _______________________________________________________________________

                                     AN ACT

    To approve and implement the trade agreements concluded in the Uruguay
                   Round of multilateral trade negotiations.

    103d CONGRESS
      2d Session
                                    H. R. 5110

    _______________________________________________________________________

                                     AN ACT

    To approve and implement the trade agreements concluded in the Uruguay
                   Round of multilateral trade negotiations.

        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 ``Uruguay Round
    Agreements 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 URUGUAY
                                ROUND AGREEMENTS

           Subtitle A--Approval of Agreements and Related Provisions

    Sec. 101. Approval and entry into force of the Uruguay Round
                                Agreements.
    Sec. 102. Relationship of the agreements to United States law and State
                                law.
    Sec. 103. Implementing actions in anticipation of entry into force;
                                regulations.
                        Subtitle B--Tariff Modifications

    Sec. 111. Tariff modifications.
    Sec. 112. Implementation of Schedule XX provisions on ship repairs.
    Sec. 113. Liquidation or reliquidation and refund of duty paid on
                                certain entries.
    Sec. 114. Modifications to the HTS.
    Sec. 115. Consultation and layover requirements for, and effective date
                                of, proclaimed actions.
    Sec. 116. Effective date.
        Subtitle C--Uruguay Round Implementation and Dispute Settlement

    Sec. 121. Definitions.
    Sec. 122. Implementation of Uruguay Round Agreements.
    Sec. 123. Dispute settlement panels and procedures.
    Sec. 124. Annual report on the WTO.
    Sec. 125. Review of participation in the WTO.
    Sec. 126. Increased transparency.
    Sec. 127. Access to the WTO dispute settlement process.
    Sec. 128. Advisory committee participation.
    Sec. 129. Administrative action following WTO panel reports.
    Sec. 130. Effective date.
                         Subtitle D--Related Provisions

    Sec. 131. Working party on worker rights.
    Sec. 132. Implementation of rules of origin work program.
    Sec. 133. Membership in WTO of boycotting countries.
    Sec. 134. Africa trade and development policy.
    Sec. 135. Objectives for extended negotiations.
    Sec. 136. Repeal of tax on imported perfumes; drawback of tax on
                                distilled spirits used in perfume
                                manufacture.
    Sec. 137. Certain nonrubber footwear.
    Sec. 138. Effective date.
            TITLE II--ANTIDUMPING AND COUNTERVAILING DUTY PROVISIONS

    Sec. 201. Reference.
                         Subtitle A--General Provisions

    Sec. 211. Action with respect to petitions.
    Sec. 212. Petition and preliminary determination.
    Sec. 213. De minimis dumping margin.
    Sec. 214. Critical circumstances.
    Sec. 215. Provisional measures.
    Sec. 216. Conditions on acceptance of suspension agreements.
    Sec. 217. Termination of investigation.
    Sec. 218. Special rules for regional industries.
    Sec. 219. Determination of weighted average dumping margin.
    Sec. 220. Review of determinations.
    Sec. 221. Review determinations.
    Sec. 222. Definitions.
    Sec. 223. Export price and constructed export price.
    Sec. 224. Normal value.
    Sec. 225. Currency conversion.
    Sec. 226. Proprietary and nonproprietary information.
    Sec. 227. Opportunity for comment by consumers and industrial users.
    Sec. 228. Public notice and explanation of determinations.
    Sec. 229. Sampling and averaging; determination of weighted average
                                dumping margin.
    Sec. 230. Anticircumvention.
    Sec. 231. Evidence.
    Sec. 232. Antidumping petitions by third countries.
    Sec. 233. Conforming amendments.
    Sec. 234. Application to Canada and Mexico.
                        Subtitle B--Subsidies Provisions

                       Part 1--Countervailable Subsidies

    Sec. 251. Countervailable subsidy.
            Part 2--Repeal of Section 303 and Conforming Amendments

    Sec. 261. Repeal of section 303.
    Sec. 262. Imposition of countervailing duties.
    Sec. 263. De minimis countervailable subsidy.
    Sec. 264. Determination of countervailable subsidy rate.
    Sec. 265. Assessment of countervailing duty.
    Sec. 266. Nature of countervailable subsidy.
    Sec. 267. Definition of developing and least-developed country.
    Sec. 268. Upstream subsidies.
    Sec. 269. Sampling and averaging; determination of countervailable
                                subsidy rate.
    Sec. 270. Conforming amendments.
                   Part 3--Section 303 Injury Investigations

    Sec. 271. Special rules for injury investigations for certain section
                                303 countervailing duty orders and
                                investigations.
        Part 4--Enforcement of United States Rights Under the Subsidies
                                   Agreement

    Sec. 281. Subsidies enforcement.
    Sec. 282. Review of subsidies agreement.
    Sec. 283. Amendments to title VII of the Tariff Act of 1930.
                           Subtitle C--Effective Date

    Sec. 291. Effective date.
               TITLE III--ADDITIONAL IMPLEMENTATION OF AGREEMENTS

                             Subtitle A--Safeguards

    Sec. 301. Investigations, determinations, and recommendations by
                                International Trade Commission.
    Sec. 302. Action by President after determination of import injury.
    Sec. 303. Miscellaneous amendments.
    Sec. 304. Effective date.
         Subtitle B--Foreign Trade Barriers and Unfair Trade Practices

    Sec. 311. Identification of foreign anticompetitive practices.
    Sec. 312. Consultation with committees.
    Sec. 313. Identification of countries that deny protection of
                                intellectual property rights.
    Sec. 314. Amendments to title III of the Trade Act of 1974.
    Sec. 315. Objectives in intellectual property.
    Sec. 316. Effective date.
                  Subtitle C--Unfair Practices in Import Trade

    Sec. 321. Unfair practices in import trade.
    Sec. 322. Effective date.
                              Subtitle D--Textiles

    Sec. 331. Textile product integration.
    Sec. 332. Amendment to section 204 of the Agricultural Act of 1956.
    Sec. 333. Textile transshipments.
    Sec. 334. Rules of origin for textile and apparel products.
    Sec. 335. Effective date.
                       Subtitle E--Government Procurement

    Sec. 341. Monitoring and enforcement of the agreement on government
                                procurement.
    Sec. 342. Conforming amendments.
    Sec. 343. Reciprocal competitive procurement practices.
    Sec. 344. Effective date.
                    Subtitle F--Technical Barriers to Trade

    Sec. 351. Technical barriers to trade.
    Sec. 352. Effective date.
                    TITLE IV--AGRICULTURE-RELATED PROVISIONS

                            Subtitle A--Agriculture

                             Part I--Market Access

    Sec. 401. Section 22 amendments.
    Sec. 402. Cheese and chocolate crumb imports.
    Sec. 403. Meat Import Act.
    Sec. 404. Administration of tariff-rate quotas.
    Sec. 405. Special agricultural safeguard authority.
                                Part II--Exports

    Sec. 411. Export programs.
    Sec. 412. Other conforming amendments.
                           Part III--Other Provisions

    Sec. 421. Authority for certain actions under Article XXVIII.
    Sec. 422. Tobacco imports.
    Sec. 423. Tobacco proclamation authority.
    Sec. 424. Report to Congress on access to Canadian dairy and poultry
                                markets.
    Sec. 425. Study of milk marketing order system.
    Sec. 426. Additional program funding.
                Subtitle B--Sanitary and Phytosanitary Measures

    Sec. 431. Sanitary and phytosanitary measures.
    Sec. 432. International standard-setting activities.
                             Subtitle C--Standards

    Sec. 441. The Federal Seed Act.
                       Subtitle D--General Effective Date

    Sec. 451. General effective date.
                         TITLE V--INTELLECTUAL PROPERTY

    Sec. 501. Definition.
                        Subtitle A--Copyright Provisions

    Sec. 511. Rental rights in computer programs.
    Sec. 512. Civil penalties for unauthorized fixation of and trafficking
                                in sound recordings and music videos of
                                live musical performances.
    Sec. 513. Criminal penalties for unauthorized fixation of and
                                trafficking in sound recordings and music
                                videos or live musical performances.
    Sec. 514. Restored works.
                        Subtitle B--Trademark Provisions

    Sec. 521. Definition of ``abandoned''.
    Sec. 522. Nonregistrability of misleading geographic indications for
                                wines and spirits.
    Sec. 523. Effective date.
                         Subtitle C--Patent Provisions

    Sec. 531. Treatment of inventive activity.
    Sec. 532. Patent term and internal priority.
    Sec. 533. Patent rights.
    Sec. 534. Effective dates and application.
                          TITLE VI--RELATED PROVISIONS

                        Subtitle A--Expiring Provisions

    Sec. 601. Generalized System of Preferences.
    Sec. 602. U.S. insular possessions.
                     Subtitle B--Certain Customs Provisions

    Sec. 611. Reimbursements from customs user fee account.
    Sec. 612. Merchandise processing fees.
                       Subtitle C--Conforming Amendments

    Sec. 621. Conforming amendments.
                         TITLE VII--REVENUE PROVISIONS

    Sec. 700. Amendment of 1986 Code and table of contents.
                     Subtitle A--Withholding Tax Provisions

    Sec. 701. Withholding on distributions of Indian casino profits to
                                tribal members.
    Sec. 702. Voluntary withholding on certain Federal payments and on
                                unemployment compensation.
      Subtitle B--Provisions Relating to Estimated Taxes and Payments and
                               Deposits of Taxes

    Sec. 711. Treatment of subpart F and section 936 income of taxpayers
                                using annualized method for estimated tax.
    Sec. 712. Time for payments and deposits of certain taxes.
    Sec. 713. Reduction in rate of interest paid on certain corporate
                                overpayments.
                      Subtitle C--Earned Income Tax Credit

    Sec. 721. Extension of earned income tax credit to military personnel
                                stationed outside the United States.
    Sec. 722. Certain nonresident aliens ineligible for earned income tax
                                credit.
    Sec. 723. Income of prisoners disregarded in determining earned income
                                tax credit.
             Subtitle D--Provisions Relating To Retirement Benefits

    Sec. 731. Treatment of excess pension assets used for retiree health
                                benefits.
    Sec. 732. Rounding rules for cost-of-living adjustments.
    Sec. 733. Increase in inclusion of social security benefits paid to
                                nonresidents.
                          Subtitle E--Other Provisions

    Sec. 741. Partnership distributions of marketable securities.
    Sec. 742. Taxpayer identification numbers required at birth.
    Sec. 743. Extension of Internal Revenue Service user fees.
    Sec. 744. Modification of substantial understatement penalty for
                                corporations participating in tax shelters.
    Sec. 745. Modification of authority to set terms and conditions for
                                savings bonds.
                 Subtitle F--Pension Plan Funding and Premiums

    Sec. 750. Short title.
           subpart a--amendments to the internal revenue code of 1986
    Sec. 751. Minimum funding requirements.
    Sec. 752. Limitation on changes in current liability assumptions.
    Sec. 753. Anticipation of bargained benefit increases.
    Sec. 754. Modification of quarterly contribution requirement.
    subpart b--amendments to the employee retirement income security act of
                                      1974
    Sec. 761. Minimum funding requirements.
    Sec. 762. Limitation on changes in current liability assumptions.
    Sec. 763. Anticipation of bargained benefit increases.
    Sec. 764. Modificasubpart c--other funding provisionsirement.
    Sec. 766. Prohibition on benefit increases where plan sponsor is in
                                bankruptcy.
    Sec. 767. Single sum distributions.
    Sec. 768. Adjustments to lien for missed minimum funding contributions.
    Sec. 769. Special funding rules for certain plans.
      Part II--Amendments Related to Title IV of the Employee Retirement
                          Income Security Act of 1974

    Sec. 771. Reportable events.
    Sec. 772. Certain information required to be furnished to PBGC.
    Sec. 773. Enforcement of minimum funding requirements.
    Sec. 774. Computation of additional PBGC premium.
    Sec. 775. Disclosure to participants.
    Sec. 776. Missing participants.
    Sec. 777. Modification of maximum guarantee for disability benefits.
    Sec. 778. Procedures to facilitate distribution of termination
                                benefits.
                           Part III--Effective Dates

    Sec. 781. Effective dates.
                        TITLE VIII--PIONEER PREFERENCES

    Sec. 801. Pioneer preferences.

    SEC. 2. DEFINITIONS.

        For purposes of this Act:
                (1) GATT 1947; gatt 1994.--
                        (A) GATT 1947.--The term ``GATT 1947'' means the
                    General Agreement on Tariffs and Trade, dated October
                    30, 1947, annexed to the Final Act Adopted at the
                    Conclusion of the Second Session of the Preparatory
                    Committee of the United Nations Conference on Trade and
                    Employment, as subsequently rectified, amended, or
                    modified by the terms of legal instruments which have
                    entered into force before the date of entry into force
                    of the WTO Agreement.
                        (B) GATT 1994.--The term ``GATT 1994'' means the
                    General Agreement on Tariffs and Trade annexed to the
                    WTO Agreement.
                (2) HTS.--The term ``HTS'' means the Harmonized Tariff
            Schedule of the United States.
                (3) International trade commission.--The term
            ``International Trade Commission'' means the United States
            International Trade Commission.
                (4) Multilateral trade agreement.--The term ``multilateral
            trade agreement'' means an agreement described in section
            101(d) of this Act (other than an agreement described in
            paragraph (17) or (18) of such section).
                (5) Schedule xx.--The term ``Schedule XX'' means Schedule
            XX--United States of America annexed to the Marrakesh Protocol
            to the GATT 1994.
                (6) Trade representative.--The term ``Trade
            Representative'' means the United States Trade Representative.
                (7) Uruguay round agreements.--The term ``Uruguay Round
            Agreements'' means the agreements approved by the Congress
            under section 101(a)(1).
                (8) World trade organization and wto.--The terms ``World
            Trade Organization'' and ``WTO'' mean the organization
            established pursuant to the WTO Agreement.
                (9) WTO agreement.--The term ``WTO Agreement'' means the
            Agreement Establishing the World Trade Organization entered
            into on April 15, 1994.
                (10) WTO member and wto member country.--The terms ``WTO
            member'' and ``WTO member country'' mean a state, or separate
            customs territory (within the meaning of Article XII of the WTO
            Agreement), with respect to which the United States applies the
            WTO Agreement.

     TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE URUGUAY
                                ROUND AGREEMENTS

           Subtitle A--Approval of Agreements and Related Provisions

    SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE URUGUAY ROUND
                  AGREEMENTS.

        (a) Approval of Agreements 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 trade agreements described in subsection (d)
            resulting from the Uruguay Round of multilateral trade
            negotiations under the auspices of the General Agreement on
            Tariffs and Trade, entered into on April 15, 1994, and
            submitted to the Congress on September 27, 1994; and
                (2) the statement of administrative action proposed to
            implement the agreements that was submitted to the Congress on
            September 27, 1994.
        (b) Entry Into Force.--At such time as the President determines
    that a sufficient number of foreign countries are accepting the
    obligations of the Uruguay Round Agreements, in accordance with article
    XIV of the WTO Agreement, to ensure the effective operation of, and
    adequate benefits for the United States under, those Agreements, the
    President may accept the Uruguay Round Agreements and implement article
    VIII of the WTO Agreement.
        (c) Authorization of Appropriations.--There are authorized to be
    appropriated annually such sums as may be necessary for the payment by
    the United States of its share of the expenses of the WTO.
        (d) Trade Agreements to Which This Act Applies.--Subsection (a)
    applies to the WTO Agreement and to the following agreements annexed to
    that Agreement:
                (1) The General Agreement on Tariffs and Trade 1994.
                (2) The Agreement on Agriculture.
                (3) The Agreement on the Application of Sanitary and
            Phytosanitary Measures.
                (4) The Agreement on Textiles and Clothing.
                (5) The Agreement on Technical Barriers to Trade.
                (6) The Agreement on Trade-Related Investment Measures.
                (7) The Agreement on Implementation of Article VI of the
            General Agreement on Tariffs and Trade 1994.
                (8) The Agreement on Implementation of Article VII of the
            General Agreement on Tariffs and Trade 1994.
                (9) The Agreement on Preshipment Inspection.
                (10) The Agreement on Rules of Origin.
                (11) The Agreement on Import Licensing Procedures.
                (12) The Agreement on Subsidies and Countervailing
            Measures.
                (13) The Agreement on Safeguards.
                (14) The General Agreement on Trade in Services.
                (15) The Agreement on Trade-Related Aspects of Intellectual
            Property Rights.
                (16) The Understanding on Rules and Procedures Governing
            the Settlement of Disputes.
                (17) The Agreement on Government Procurement.
                (18) The International Bovine Meat Agreement.

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

        (a) Relationship of Agreements to United States Law.--
                (1) United states law to prevail in conflict.--No provision
            of any of the Uruguay Round Agreements, nor the application of
            any such provision to any person or circumstance, that 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 relating to--
                                (i) the protection of human, animal, or
                            plant life or health,
                                (ii) the protection of the environment, or
                                (iii) 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 Agreements 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 (19 U.S.C. 2114c(2)(A)), consult with the States
                    for the purpose of achieving conformity of State laws
                    and practices with the Uruguay Round Agreements.
                        (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 Uruguay Round Agreements that directly relate to,
                    or will potentially have a direct effect on, the
                    States. The Federal-State consultation process shall
                    include procedures under which--
                                (i) the States will be informed on a
                            continuing basis of matters under the Uruguay
                            Round Agreements that directly relate to, or
                            will potentially have a direct impact on, the
                            States;
                                (ii) the States will be provided an
                            opportunity to submit, on a continuing basis,
                            to the Trade Representative information and
                            advice with respect to matters referred to in
                            clause (i); and
                                (iii) the Trade Representative will take
                            into account the information and advice
                            received from the States under clause (ii) when
                            formulating United States positions regarding
                            matters referred to in clause (i).
                    The Federal Advisory Committee Act (5 U.S.C. App.)
                    shall not apply to the Federal-State consultation
                    process established by this paragraph.
                        (C) Federal-state cooperation in wto dispute
                    settlement.--
                                (i) When a WTO member requests
                            consultations with the United States under
                            Article 4 of the Understanding on Rules and
                            Procedures Governing the Settlement of Disputes
                            referred to in section 101(d)(16) (hereafter in
                            this subsection referred to as the ``Dispute
                            Settlement Understanding'') concerning whether
                            the law of a State is inconsistent with the
                            obligations undertaken by the United States in
                            any of the Uruguay Round Agreements, the Trade
                            Representative shall notify the Governor of the
                            State or the Governor's designee, and the chief
                            legal officer of the jurisdiction whose law is
                            the subject of the consultations, as soon as
                            possible after the request is received, but in
                            no event later than 7 days thereafter.
                                (ii) Not later than 30 days after receiving
                            such a request for consultations, the Trade
                            Representative shall consult with
                            representatives of the State concerned
                            regarding the matter. If the consultations
                            involve the laws of a large number of States,
                            the Trade Representative may consult with an
                            appropriate group of representatives of the
                            States concerned, as determined by those
                            States.
                                (iii) The Trade Representative shall make
                            every effort to ensure that the State concerned
                            is involved in the development of the position
                            of the United States at each stage of the
                            consultations and each subsequent stage of
                            dispute settlement proceedings regarding the
                            matter. In particular, the Trade Representative
                            shall--
                                        (I) notify the State concerned not
                                    later than 7 days after a WTO member
                                    requests the establishment of a dispute
                                    settlement panel or gives notice of the
                                    WTO member's decision to appeal a
                                    report by a dispute settlement panel
                                    regarding the matter; and
                                        (II) provide the State concerned
                                    with the opportunity to advise and
                                    assist the Trade Representative in the
                                    preparation of factual information and
                                    argumentation for any written or oral
                                    presentations by the United States in
                                    consultations or in proceedings of a
                                    panel or the Appellate Body regarding
                                    the matter.
                                (iv) If a dispute settlement panel or the
                            Appellate Body finds that the law of a State is
                            inconsistent with any of the Uruguay Round
                            Agreements, the Trade Representative shall
                            consult with the State concerned in an effort
                            to develop a mutually agreeable response to the
                            report of the panel or the Appellate Body and
                            shall make every effort to ensure that the
                            State concerned is involved in the development
                            of the United States position regarding the
                            response.
                        (D) Notice to states regarding consultations on
                    foreign subcentral government laws.--
                                (i) Subject to clause (ii), the Trade
                            Representative shall, at least 30 days before
                            making a request for consultations under
                            Article 4 of the Dispute Settlement
                            Understanding regarding a subcentral government
                            measure of another WTO member, notify, and
                            solicit the views of, appropriate
                            representatives of each State regarding the
                            matter.
                                (ii) In exigent circumstances clause (i)
                            shall not apply, in which case the Trade
                            Representative shall notify the appropriate
                            representatives of each State not later than 3
                            days after making the request for consultations
                            referred to in clause (i).
                (2) Legal challenge.--
                        (A) In general.--No State law, or the application
                    of such a State law, may be declared invalid as to any
                    person or circumstance on the ground that the provision
                    or application is inconsistent with any of the Uruguay
                    Round Agreements, except in an action brought by the
                    United States for the purpose of declaring such law or
                    application invalid.
                        (B) Procedures governing action.--In any action
                    described in subparagraph (A) that is brought by the
                    United States against a State or any subdivision
                    thereof--
                                (i) a report of a dispute settlement panel
                            or the Appellate Body convened under the
                            Dispute Settlement Understanding regarding the
                            State law, or the law of any political
                            subdivision thereof, shall not be considered as
                            binding or otherwise accorded deference;
                                (ii) the United States shall have the
                            burden of proving that the law that is the
                            subject of the action, or the application of
                            that law, is inconsistent with the agreement in
                            question;
                                (iii) any State whose interests may be
                            impaired or impeded in the action shall have
                            the unconditional right to intervene in the
                            action as a party, and the United States shall
                            be entitled to amend its complaint to include a
                            claim or cross-claim concerning the law of a
                            State that so intervenes; and
                                (iv) any State law that is declared invalid
                            shall not be deemed to have been invalid in its
                            application during any period before the
                            court's judgment becomes final and all timely
                            appeals, including discretionary review, of
                            such judgment are exhausted.
                        (C) Reports to congressional committees.--At least
                    30 days before the United States brings an action
                    described in subparagraph (A), the Trade Representative
                    shall provide a report to the Committee on Ways and
                    Means of the House of Representatives and the Committee
                    on Finance of the Senate--
                                (i) describing the proposed action;
                                (ii) describing efforts by the Trade
                            Representative to resolve the matter with the
                            State concerned by other means; and
                                (iii) if the State law was the subject of
                            consultations under the Dispute Settlement
                            Understanding, certifying that the Trade
                            Representative has substantially complied with
                            the requirements of paragraph (1)(C) in
                            connection with the matter.
            Following the submission of the report, and before the action
            is brought, the Trade Representative shall consult with the
            committees referred to in the preceding sentence concerning the
            matter.
                (3) Definition of state law.--For purposes of this
            subsection--
                        (A) the term ``State law'' includes--
                                (i) any law of a political subdivision of a
                            State; and
                                (ii) any State law regulating or taxing the
                            business of insurance; and
                        (B) the terms ``dispute settlement panel'' and
                    ``Appellate Body'' have the meanings given those terms
                    in section 121.
        (c) Effect of Agreement With Respect to Private Remedies.--
                (1) Limitations.--No person other than the United States--
                        (A) shall have any cause of action or defense under
                    any of the Uruguay Round Agreements or by virtue of
                    congressional approval of such an agreement, or
                        (B) 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 such agreement.
                (2) Intent of congress.--It is the intention of the
            Congress through paragraph (1) to occupy the field with respect
            to any cause of action or defense under or in connection with
            any of the Uruguay Round Agreements, including by precluding
            any person other than the United States from bringing any
            action against any State or political subdivision thereof or
            raising any defense to the application of State law under or in
            connection with any of the Uruguay Round Agreements--
                        (A) on the basis of a judgment obtained by the
                    United States in an action brought under any such
                    agreement; or
                        (B) on any other basis.
        (d) Statement of Administrative Action.--The statement of
    administrative action approved by the Congress under section 101(a)
    shall be regarded as an authoritative expression by the United States
    concerning the interpretation and application of the Uruguay Round
    Agreements and this Act in any judicial proceeding in which a question
    arises concerning such interpretation or application.

    SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE;
                  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 any of the
    Uruguay Round Agreements enters into force with respect to the United
    States is appropriately implemented on such date. Such proclamation or
    regulation may not have an effective date earlier than the date of
    entry into force with respect to the United States of the agreement to
    which the proclamation or regulation relates.
        (b) Regulations.--Any interim regulation necessary or appropriate
    to carry out any action proposed in the statement of administrative
    action approved under section 101(a) to implement an agreement
    described in section 101(d) (7), (12), or (13) shall be issued not
    later than 1 year after the date on which the agreement enters into
    force with respect to the United States.

                        Subtitle B--Tariff Modifications

    SEC. 111. TARIFF MODIFICATIONS.

        (a) In General.--In addition to the authority provided by section
    1102 of the Omnibus Trade and Competitiveness Act of 1988 (19 U.S.C.
    2902), the President shall have the authority to proclaim--
                (1) such other modification of any duty,
                (2) such other staged rate reduction, or
                (3) such additional duties,
    as the President determines to be necessary or appropriate to carry out
    Schedule XX.
        (b) Other Tariff Modifications.--Subject to the consultation and
    layover requirements of section 115, the President may proclaim--
                (1) the modification of any duty or staged rate reduction
            of any duty set forth in Schedule XX if--
                        (A) the United States agrees to such modification
                    or staged rate reduction in a multilateral negotiation
                    under the auspices of the WTO, and
                        (B) such modification or staged rate reduction
                    applies to the rate of duty on an article contained in
                    a tariff category that was the subject of reciprocal
                    duty elimination or harmonization negotiations during
                    the Uruguay Round of multilateral trade negotiations,
                    and
                (2) such modifications as are necessary to correct
            technical errors in Schedule XX or to make other rectifications
            to the Schedule.
        (c) Authority To Increase Duties on Articles From Certain
    Countries.--
                (1) In general.--
                        (A) Determination with respect to certain
                    countries.--Notwithstanding section 251 of the Trade
                    Expansion Act of 1962 (19 U.S.C. 1881), after the entry
                    into force of the WTO Agreement with respect to the
                    United States, if the President--
                                (i) determines that a foreign country
                            (other than a foreign country that is a WTO
                            member country) is not according adequate trade
                            benefits to the United States, including
                            substantially equal competitive opportunities
                            for the commerce of the United States, and
                                (ii) consults with the Committee on Ways
                            and Means of the House of Representatives and
                            the Committee on Finance of the Senate,
                    the President may proclaim an increase in the rate of
                    duty with respect to any article of such country in
                    accordance with subparagraph (B).
                        (B) Rate of duty described.--The President may
                    proclaim a rate of duty on any article of a country
                    identified under subparagraph (A) that is equal to the
                    greater of--
                                (i) the rate of duty set forth for such
                            article in the base rate of duty column of
                            Schedule XX, or
                                (ii) the rate of duty set forth for such
                            article in the bound rate of duty column of
                            Schedule XX.
                (2) Termination of increased duties.--The President shall
            terminate any increase in the rate of duty proclaimed under
            this subsection by a proclamation which shall be effective on
            the earlier of--
                        (A) the date set out in such proclamation of
                    termination, or
                        (B) the date the WTO Agreement enters into force
                    with respect to the foreign country with respect to
                    which the determination under paragraph (1) was made.
                (3) Publication of determination and termination.--The
            President shall publish in the Federal Register notice of a
            determination made under paragraph (1) and a termination
            occurring by reason of paragraph (2).
        (d) Adjustments to Certain Column 2 Rates of Duty.--At such time as
    the President proclaims any modification to the HTS to implement the
    provisions of Schedule XX, the President shall also proclaim the rate
    of duty set forth in Column B as the column 2 rate of duty for the
    subheading of the HTS that corresponds to the subheading in Schedule XX
    listed in Column A.

    Column A                     Column B

    Schedule XX subheading:      Rate of duty for column 2
                                 of the HTS:
    0201.10.50.................  31.1%
    0201.20.80.................  31.1%
    0201.30.80.................  31.1%
    0202.10.50.................  31.1%
    0202.20.80.................  31.1%
    0202.30.80.................  31.1%
    0401.30.25.................  90.8 cents/liter
    0401.30.75.................  $1.936/kg
    0402.10.50.................  $1.018/kg
    0402.21.25.................  $1.018/kg
    0402.21.50.................  $1.285/kg
    0402.21.90.................  $1.831/kg
    0402.29.50.................  $1.299/kg + 17.5%
    0402.91.60.................  36.8 cents/kg
    0402.99.50.................  58.4 cents/kg
    0402.99.90.................  54.5 cents/kg + 17.5%
    0403.10.50.................  $1.217/kg + 20%
    0403.90.16.................  90.8 cents/liter
    0403.90.45.................  $1.03/kg
    0403.90.55.................  $1.285/kg
    0403.90.65.................  $1.831/kg
    0403.90.78.................  $1.936/kg
    0403.90.95.................  $1.217/kg + 20%
    0404.10.11.................  20%
    0404.10.15.................  $1.217/kg + 10%
    0404.10.90.................  $1.03/kg
    0404.90.30.................  25%
    0404.90.50.................  $1.399/kg + 10%
    0405.00.40.................  $1.813/kg
    0405.00.90.................  $2.194/kg + 10%
    0406.10.08.................  $1.775/kg
    0406.10.18.................  $2.67/kg
    0406.10.28.................  $1.443/kg
    0406.10.38.................  $1.241/kg
    0406.10.48.................  $2.121/kg
    0406.10.58.................  $2.525/kg
    0406.10.68.................  $1.631/kg
    0406.10.78.................  $1.328/kg
    0406.10.88.................  $1.775/kg
    0406.20.28.................  $2.67/kg
    0406.20.33.................  $1.443/kg
    0406.20.39.................  $1.241/kg
    0406.20.48.................  $2.121/kg
    0406.20.53.................  $2.525/kg
    0406.20.63.................  $2.67/kg
    0406.20.67.................  $1.443/kg
    0406.20.71.................  $1.241/kg
    0406.20.75.................  $2.121/kg
    0406.20.79.................  $2.525/kg
    0406.20.83.................  $1.631/kg
    0406.20.87.................  $1.328/kg
    0406.20.91.................  $1.775/kg
    0406.30.18.................  $2.67/kg
    0406.30.28.................  $1.443/kg
    0406.30.38.................  $1.241/kg
    0406.30.48.................  $2.121/kg
    0406.30.53.................  $1.631/kg
    0406.30.63.................  $2.67/kg
    0406.30.67.................  $1.443/kg
    0406.30.71.................  $1.241/kg
    0406.30.75.................  $2.121/kg
    0406.30.79.................  $2.525/kg
    0406.30.83.................  $1.631/kg
    0406.30.87.................  $1.328/kg
    0406.30.91.................  $1.775/kg
    0406.40.70.................  $2.67/kg
    0406.90.12.................  $1.443/kg
    0406.90.18.................  $2.121/kg
    0406.90.33.................  $2.525/kg
    0406.90.38.................  $2.525/kg
    0406.90.43.................  $2.525/kg
    0406.90.48.................  $2.208/kg
    0406.90.64.................  $1.241/kg
    0406.90.68.................  $2.525/kg
    0406.90.74.................  $2.67/kg
    0406.90.78.................  $1.443/kg
    0406.90.84.................  $1.241/kg
    0406.90.88.................  $2.121/kg
    0406.90.92.................  $1.631/kg
    0406.90.94.................  $1.328/kg
    0406.90.97.................  $1.775/kg
    1202.10.80.................  192.7%
    1202.20.80.................  155%
    1517.90.60.................  40.2 cents/kg
    1701.11.50.................  39.85 cents/kg
    1701.12.10.................  6.58170 cents/kg less 0.0622005 cents/kg
                                  for each degree under 100 degrees (and
                                  fractions of a degree in proportion) but
                                  not less than 5.031562 cents/kg
    1701.12.50.................  42.05 cents/kg
    1701.91.10.................  6.58170 cents/kg less 0.0622005 cents/kg
                                  for each degree under 100 degrees (and
                                  fractions of a degree in proportion) but
                                  not less than 5.031562 cents/kg
    1701.91.30.................  42.05 cents/kg
    1701.91.48.................  39.9 cents/kg + 6%
    1701.91.58.................  39.9 cents/kg + 6%
    1701.99.10.................  6.58170 cents/kg less 0.0622005 cents/kg
                                  for each degree under 100 degrees (and
                                  fractions of a degree in proportion) but
                                  not less than 5.031562 cents/kg
    1701.99.50.................  42.05 cents/kg
    1702.20.28.................  19.9 cents/kg of total sugars + 6%
    1702.30.28.................  19.9 cents/kg of total sugars + 6%
    1702.40.28.................  39.9 cents/kg of total sugars + 6%
    1702.60.28.................  39.9 cents/kg of total sugars + 6%
    1702.90.10.................  6.58170 cents/kg of total sugars
    1702.90.20.................  42.05 cents/kg
    1702.90.58.................  39.9 cents/kg of total sugars + 6%
    1702.90.68.................  39.9 cents/kg + 6%
    1704.90.58.................  47.4 cents/kg + 12.2%
    1704.90.68.................  47.4 cents/kg + 12.2%
    1704.90.78.................  47.4 cents/kg + 12.2%
    1806.10.15.................  25.5 cents/kg
    1806.10.28.................  39.5 cents/kg
    1806.10.38.................  39.5 cents/kg
    1806.10.55.................  39.5 cents/kg
    1806.10.75.................  39.5 cents/kg
    1806.20.26.................  43.8 cents/kg + 5%
    1806.20.28.................  62.1 cents/kg + 5%
    1806.20.36.................  43.8 cents/kg + 5%
    1806.20.38.................  62.1 cents/kg + 5%
    1806.20.73.................  35.9 cents/kg + 10%
    1806.20.77.................  35.9 cents/kg + 10%
    1806.20.82.................  43.8 cents/kg + 10%
    1806.20.83.................  62.1 cents/kg + 10%
    1806.20.87.................  43.8 cents/kg + 10%
    1806.20.89.................  62.1 cents/kg + 10%
    1806.20.92.................  43.8 cents/kg + 10%
    1806.20.93.................  62.1 cents/kg + 10%
    1806.20.96.................  43.8 cents/kg + 10%
    1806.20.97.................  62.1 cents/kg + 10%
    1806.32.06.................  43.8 cents/kg + 5%
    1806.32.08.................  62.1 cents/kg + 5%
    1806.32.16.................  43.8 cents/kg + 5%
    1806.32.18.................  62.1 cents/kg + 5%
    1806.32.70.................  43.8 cents/kg + 7%
    1806.32.80.................  62.1 cents/kg + 7%
    1806.90.08.................  43.8 cents/kg + 7%
    1806.90.10.................  62.1 cents/kg + 7%
    1806.90.18.................  43.8 cents/kg + 7%
    1806.90.20.................  62.1 cents/kg + 7%
    1806.90.28.................  43.8 cents/kg + 7%
    1806.90.30.................  62.1 cents/kg + 7%
    1806.90.38.................  43.8 cents/kg + 7%
    1806.90.40.................  62.1 cents/kg + 7%
    1806.90.48.................  43.8 cents/kg + 7%
    1806.90.50.................  62.1 cents/kg + 7%
    1806.90.58.................  43.8 cents/kg + 7%
    1806.90.60.................  62.1 cents/kg + 7%
    1901.10.30.................  $1.217/kg + 17.5%
    1901.10.40.................  $1.217/kg + 17.5%
    1901.10.75.................  $1.217/kg + 17.5%
    1901.10.85.................  $1.217/kg + 17.5%
    1901.20.15.................  49.8 cents/kg + 10%
    1901.20.25.................  49.8 cents/kg + 10%
    1901.20.35.................  49.8 cents/kg + 10%
    1901.20.50.................  49.8 cents/kg + 10%
    1901.20.60.................  49.8 cents/kg + 10%
    1901.20.70.................  49.8 cents/kg + 10%
    1901.90.36.................  $1.328/kg
    1901.90.42.................  25%
    1901.90.44.................  $1.217/kg + 16%
    1901.90.46.................  25%
    1901.90.48.................  $1.217/kg + 16%
    1901.90.54.................  27.9 cents/kg + 10%
    1901.90.58.................  27.9 cents/kg + 10%
    2008.11.15.................  155%
    2008.11.35.................  155%
    2008.11.60.................  155%
    2101.10.38.................  35.9 cents/kg + 10%
    2101.10.48.................  35.9 cents/kg + 10%
    2101.10.58.................  35.9 cents/kg + 10%
    2101.20.38.................  35.9 cents/kg + 10%
    2101.20.48.................  35.9 cents/kg + 10%
    2101.20.58.................  35.9 cents/kg + 10%
    2103.90.78.................  35.9 cents/kg + 7.5%
    2105.00.20.................  59 cents/kg + 20%
    2105.00.40.................  59 cents/kg + 20%
    2106.90.02.................  $1.014/kg
    2106.90.04.................  $2.348/kg
    2106.90.08.................  $2.348/kg
    2106.90.11.................  6.58170 cents/kg of total sugars
    2106.90.12.................  42.05 cents/kg
    2106.90.34.................  82.8 cents/kg + 10%
    2106.90.38.................  82.8 cents/kg + 10%
    2106.90.44.................  82.8 cents/kg + 10%
    2106.90.48.................  82.8 cents/kg + 10%
    2106.90.57.................  33.9 cents/kg + 10%
    2106.90.67.................  33.9 cents/kg + 10%
    2106.90.77.................  33.9 cents/kg + 10%
    2106.90.87.................  33.9 cents/kg + 10%
    2202.90.28.................  27.6 cents/liter + 17.5%
    2309.90.28.................  94.6 cents/kg + 7.5%
    2309.90.48.................  94.6 cents/kg + 7.5%
    2401.10.70.................  85 cents/kg
    2401.10.90.................  85 cents/kg
    2401.20.30.................  $1.21/kg
    2401.20.45.................  $1.15/kg
    2401.20.55.................  $1.15/kg
    2801.30.20.................  37%
    2805.30.00.................  31.3%
    2805.40.00.................  5.7%
    2811.19.10.................  4.9%
    2818.10.20.................  4.1%
    2822.00.00.................  1.7%
    2827.39.20.................  31.9%
    2833.11.50.................  3.6%
    2833.27.00.................  4.2%
    2836.40.20.................  4.8%
    2836.60.00.................  8.4%
    2837.20.10.................  5.1%
    2840.11.00.................  1.2%
    2840.19.00.................  0.4%
    2849.20.20.................  1.6%
    2903.15.00.................  88%
    2903.16.00.................  33.3%
    2903.30.05.................  46.3%
    2906.11.00.................  6.2%
    2907.12.00.................  48.3%
    2909.11.00.................  4%
    2912.11.00.................  12.1%
    2916.15.10.................  35.2%
    2916.19.30.................  24.4%
    2923.20.20.................  33.4%
    3213.90.00.................  48.6%
    3307.10.20.................  81.7%
    3307.49.00.................  73.2%
    3403.11.20.................  0.4%
    3403.19.10.................  0.4%
    3506.10.10.................  30.4%
    3603.00.30.................  8.3%
    3603.00.90.................  0.3%
    3604.10.00.................  12.5%
    3606.90.30.................  56.7%
    3706.10.30.................  7%
    3807.00.00.................  0.2%
    3823.90.33.................  26.3%
    3904.61.00.................  34.1%
    3916.90.10.................  40.6%
    3920.51.50.................  48.2%
    3920.59.80.................  51.7%
    3926.90.65.................  8.4%
    5201.00.18.................  36.9 cents/kg
    5201.00.28.................  36.9 cents/kg
    5201.00.38.................  36.9 cents/kg
    5201.00.80.................  36.9 cents/kg
    5202.99.30.................  9.2 cents/kg
    5203.00.30.................  36.9 cents/kg

        (e) Authority To Consolidate Subheadings and Modify Column 2 Rates
    of Duty for Tariff Simplification Purposes.--
                (1) In general.--Whenever the HTS column 1 general rates of
            duty for 2 or more 8-digit subheadings are at the same level
            and such subheadings are subordinate to a provision required by
            the International Convention on the Harmonized Commodity
            Description and Coding System, the President may proclaim,
            subject to the consultation and layover requirements of section
            115, that the goods described in such subheadings be provided
            for in a single 8-digit subheading of the HTS, and that--
                        (A) the HTS column 1 general rate of duty for such
                    single subheading be the column 1 general rate of duty
                    common to all such subheadings, and
                        (B) the HTS column 2 rate of duty for such single
                    subheading be the highest column 2 rate of duty for
                    such subheadings that is in effect on the day before
                    the effective date of such proclamation.
                (2) Same level of duty.--The provisions of this subsection
            apply to subheadings described in paragraph (1) that have the
            same column 1 general rate of duty--
                        (A) on the date of the enactment of this Act, or
                        (B) after such date of enactment as a result of a
                    staged reduction in such column 1 rates of duty.

    SEC. 112. IMPLEMENTATION OF SCHEDULE XX PROVISIONS ON SHIP REPAIRS.

        (a) In General.--Section 484E(b) of the Customs and Trade Act of
    1990 (19 U.S.C. 1466 note; 104 Stat. 710) is amended--
                (1) by striking ``and'' at the end of paragraph (1);
                (2) by striking the period at the end of paragraph (2) and
            inserting ``, and''; and
                (3) by adding at the end the following new paragraph:
                ``(3) any entry made pursuant to section 466(h) (1) or (2)
            of the Tariff Act of 1930 (19 U.S.C. 1466(h) (1) or (2)), on or
            after the date of the entry into force of the WTO Agreement
            with respect to the United States.''.
        (b) Exemption for Certain Spare Parts.--Section 466(h) of the
    Tariff Act of 1930 (19 U.S.C. 1466(h)) is amended--
                (1) by striking ``or'' at the end of paragraph (1);
                (2) by striking the period at the end of paragraph (2) and
            inserting ``, or''; and
                (3) by adding at the end the following new paragraph:
                ``(3) the cost of spare parts necessarily installed before
            the first entry into the United States, but only if duty is
            paid under appropriate commodity classifications of the
            Harmonized Tariff Schedule of the United States upon first
            entry into the United States of each such spare part purchased
            in, or imported from, a foreign country.''.

    SEC. 113. LIQUIDATION OR RELIQUIDATION AND REFUND OF DUTY PAID ON
                  CERTAIN ENTRIES.

        (a) Liquidation or Reliquidation.--Notwithstanding section 514 of
    the Tariff Act of 1930 (19 U.S.C. 1514) or any other provision of law,
    and subject to subsection (b), the Secretary of the Treasury shall
    liquidate or reliquidate the entries listed or otherwise described in
    subsection (c) and refund any duty or excess duty that was paid, as
    provided in subsection (c).
        (b) Requests.--Liquidation or reliquidation may be made under
    subsection (a) with respect to an entry only if a request therefor is
    filed with the Customs Service, within 180 days after the date on which
    the WTO Agreement enters into force with respect to the United States,
    that contains sufficient information to enable the Customs Service--
                (1) to locate the entry; or
                (2) to reconstruct the entry if it cannot be located.
        (c) Entries.--The entries referred to in subsection (a) are as
    follows:
                (1) Agglomerated stone tiles.--Any goods--
                        (A) for which the importer claimed or would have
                    claimed entry under subheading 6810.19.12 of the HTS on
                    or after October 1, 1990, and before the effective date
                    of a proclamation issued by the President under section
                    103(a) of this Act with respect to items under such
                    subheading in order to carry out Schedule XX, or
                        (B) entered on or after January 1, 1989, and before
                    October 1, 1990, for which entry would have been
                    claimed under subheading 6810.19.12 of the HTS on or
                    after October 1, 1990,
            shall be liquidated or reliquidated as if the wording of that
            subheading were ``Of stone agglomerated with binders other than
            cement'', and the Secretary of the Treasury shall refund any
            excess duties paid with respect to such entries.
                (2) Clomiphene citrate.--
                        (A) Any entry, or withdrawal from warehouse for
                    consumption, of goods described in heading 9902.29.95
                    of the HTS (relating to clomiphene citrate) which was
                    made after December 31, 1988, and before January 1,
                    1993, and with respect to which there would have been
                    no duty if the reference to subheading ``2922.19.15''
                    in such heading were a reference to subheading
                    ``2922.19.15 or any subheading of chapter 30'' at the
                    time of such entry or withdrawal, shall be liquidated
                    or reliquidated as free of duty.
                        (B) The Secretary of the Treasury shall refund any
                    duties paid with respect to entries described in
                    subparagraph (A).

    SEC. 114. MODIFICATIONS TO THE HTS.

        (a) Wool.--
                (1) Amendments.--Chapter 51 of the HTS is amended--
                        (A) by striking subheading 5101.21.60 and inserting
                    the following new superior text and subheadings, with
                    the superior text having the same degree of indentation
                    as the article description in subheading 5101.11.60:

    ``                   Other:
        5101.21.65        Unimproved wool; other wool, not finer                                   81.6 cents/kg
                           than 46s..............................  Free                             +20%
        5101.21.70        Other..................................  7.7 cents/kg+  Free (MX) 0.8    81.6 cents/kg
                                                                    6.25%          cents/kg+0.6%    +20%
                                                                                   (IL) 3 cents/
                                                                                   kg+2.5% (CA)
                                                                                                                  ''
                                                                                                                   ;

                        (B) by striking subheading 5101.29.60 and inserting
                    the following new superior text and subheadings, with
                    the superior text having the same degree of indentation
                    as the article description in subheading 5102.10.20:

    ``                   Other:
        5101.29.65        Unimproved wool; other wool, not finer                                  81.6 cents/kg
                           than 46s.............................  Free                             +20%
        5101.29.70        Other.................................  7.7 cents/kg+  0.8 cents/kg+0.  81.6 cents/kg
                                                                   6.25%          6% (IL) 3        +20%
                                                                                  cents/kg+2.5%
                                                                                  (CA) 6.1 cents/
                                                                                  kg+5% (MX)                     '';

                    and
                        (C) by striking subheading 5101.30.60 and inserting
                    the following new superior text and subheadings, with
                    the superior text having the same degree of indentation
                    as the superior text immediately preceding subheading
                    5102.10.20:

    ``                   Other:
        5101.30.65        Unimproved wool; other wool, not finer                                   81.6 cents/kg
                           than 46s..............................  Free                             +20%
        5101.30.70        Other..................................  7.7 cents/kg+  Free (MX) 0.8    81.6 cents/kg
                                                                    6.25%          cents/kg+0.6%    +20%
                                                                                   (IL) 3 cents/
                                                                                   kg+2.5% (CA)                   ''

                (2) Effective date.--The amendments made by this subsection
            take effect on the effective date of the proclamation issued by
            the President under section 103(a) to carry out Schedule XX.
        (b) Duty Free Treatment for Octadecyl Isocyanate and 5-Chloro-2-
    (2,4-Dichloro-phenoxy)phenol.--The President--
                (1) shall proclaim duty-free entry for octadecyl isocyanate
            and 5-Chloro-2-(2,4-dichloro-phenoxy)phenol, to be effective on
            the effective date of the proclamation issued by the President
            under section 103(a) to carry out Schedule XX, and
                (2) shall take such actions as are necessary to reflect
            such tariff treatment in Schedule XX.

    SEC. 115. CONSULTATION AND LAYOVER REQUIREMENTS FOR, AND EFFECTIVE DATE
                  OF, PROCLAIMED ACTIONS.

        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 (19 U.S.C.
                    2155), 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 for such actions, 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).

    SEC. 116. EFFECTIVE DATE.

        (a) In General.--Except as provided in section 114(a) and
    subsection (b) of this section, this subtitle and the amendments made
    by this subtitle take effect on the date on which the WTO Agreement
    enters into force with respect to the United States.
        (b) Section 115.--Section 115 takes effect on the date of the
    enactment of this Act.

        Subtitle C--Uruguay Round Implementation and Dispute Settlement

    SEC. 121. DEFINITIONS.

        For purposes of this subtitle:
                (1) Administering authority.--The term ``administering
            authority'' has the meaning given that term in section 771(1)
            of the Tariff Act of 1930.
                (2) Appellate body.--The term ``Appellate Body'' means the
            Appellate Body established under Article 17.1 of the Dispute
            Settlement Understanding.
                (3) Appropriate congressional committees; congressional
            committees.--
                        (A) Appropriate congressional committees.--The term
                    ``appropriate congressional committees'' means the
                    committees referred to in subparagraph (B) and any
                    other committees of the Congress that have jurisdiction
                    involving the matter with respect to which
                    consultations are to be held.
                        (B) Congressional committees.--The term
                    ``congressional committees'' means the Committee on
                    Ways and Means of the House of Representatives and the
                    Committee on Finance of the Senate.
                (4) Dispute settlement panel; panel.--The terms ``dispute
            settlement panel'' and ``panel'' mean a panel established
            pursuant to Article 6 of the Dispute Settlement Understanding.
                (5) Dispute settlement body.--The term ``Dispute Settlement
            Body'' means the Dispute Settlement Body administering the
            rules and procedures set forth in the Dispute Settlement
            Understanding.
                (6) Dispute settlement understanding.--The term ``Dispute
            Settlement Understanding'' means the Understanding on Rules and
            Procedures Governing the Settlement of Disputes referred to in
            section 101(d)(16).
                (7) General council.--The term ``General Council'' means
            the General Council established under paragraph 2 of Article IV
            of the WTO Agreement.
                (8) Ministerial conference.--The term ``Ministerial
            Conference'' means the Ministerial Conference established under
            paragraph 1 of Article IV of the WTO Agreement.
                (9) Other terms.--The terms ``Antidumping Agreement'',
            ``Agreement on Subsidies and Countervailing Measures'', and
            ``Safeguards Agreement'' mean the agreements referred to in
            section 101(d) (7), (12), and (13), respectively.

    SEC. 122. IMPLEMENTATION OF URUGUAY ROUND AGREEMENTS.

        (a) Decisionmaking.--In the implementation of the Uruguay Round
    Agreements and the functioning of the World Trade Organization, it is
    the objective of the United States to ensure that the Ministerial
    Conference and the General Council continue the practice of
    decisionmaking by consensus followed under the GATT 1947, as required
    by paragraph 1 of article IX of the WTO Agreement.
        (b) Consultations With Congressional Committees.--In furtherance of
    the objective set forth in subsection (a), the Trade Representative
    shall consult with the appropriate congressional committees before any
    vote is taken by the Ministerial Conference or the General Council
    relating to--
                (1) the adoption of an interpretation of the WTO Agreement
            or another multilateral trade agreement,
                (2) the amendment of any such agreement,
                (3) the granting of a waiver of any obligation under any
            such agreement,
                (4) the adoption of any amendment to the rules or
            procedures of the Ministerial Conference or the General
            Council,
                (5) the accession of a state or separate customs territory
            to the WTO Agreement, or
                (6) the adoption of any other decision,
    if the action described in paragraph (1), (2), (3), (4), (5), or (6)
    would substantially affect the rights or obligations of the United
    States under the WTO Agreement or another multilateral trade agreement
    or potentially entails a change in Federal or State law.
        (c) Report on Decisions.--
                (1) In general.--Not later than 30 days after the end of
            any calendar year in which the Ministerial Conference or the
            General Council adopts by vote any decision to take any action
            described in paragraph (1), (2), (4), or (6) of subsection (b),
            the Trade Representative shall submit a report to the
            appropriate congressional committees describing--
                        (A) the nature of the decision;
                        (B) the efforts made by the United States to have
                    the matter decided by consensus pursuant to paragraph 1
                    of article IX of the WTO Agreement, and the results of
                    those efforts;
                        (C) which countries voted for, and which countries
                    voted against, the decision;
                        (D) the rights or obligations of the United States
                    affected by the decision and any Federal or State law
                    that would be amended or repealed, if the President
                    after consultation with the Congress determined that
                    such amendment or repeal was an appropriate response;
                    and
                        (E) the action the President intends to take in
                    response to the decision or, if the President does not
                    intend to take any action, the reasons therefor.
                (2) Additional reporting requirements.--
                        (A) Grant of waiver.--In the case of a decision to
                    grant a waiver described in subsection (b)(3), the
                    report under paragraph (1) shall describe the terms and
                    conditions of the waiver and the rights and obligations
                    of the United States that are affected by the waiver.
                        (B) Accession.--In the case of a decision on
                    accession described in subsection (b)(5), the report
                    under paragraph (1) shall state whether the United
                    States intends to invoke Article XIII of the WTO
                    Agreement.
        (d) Consultation on Report.--Promptly after the submission of a
    report under subsection (c), the Trade Representative shall consult
    with the appropriate congressional committees with respect to the
    report.

    SEC. 123. DISPUTE SETTLEMENT PANELS AND PROCEDURES.

        (a) Review by President.--The President shall review annually the
    WTO panel roster and shall include the panel roster and the list of
    persons serving on the Appellate Body in the annual report submitted by
    the President under section 163(a) of the Trade Act of 1974.
        (b) Qualifications of Appointees to Panels.--The Trade
    Representative shall--
                (1) seek to ensure that persons appointed to the WTO panel
            roster are well-qualified, and that the roster includes persons
            with expertise in the subject areas covered by the Uruguay
            Round Agreements; and
                (2) inform the President of persons nominated to the roster
            by other WTO member countries.
        (c) Rules Governing Conflicts of Interest.--The Trade
    Representative shall seek the establishment by the General Council and
    the Dispute Settlement Body of rules governing conflicts of interest by
    persons serving on panels and members of the Appellate Body and shall
    describe, in the annual report submitted under section 124, any
    progress made in establishing such rules.
        (d) Notification of Disputes.--Promptly after a dispute settlement
    panel is established to consider the consistency of Federal or State
    law with any of the Uruguay Round Agreements, the Trade Representative
    shall notify the appropriate congressional committees of--
                (1) the nature of the dispute, including the matters set
            forth in the request for the establishment of the panel, the
            legal basis of the complaint, and the specific measures, in
            particular any State or Federal law cited in the request for
            establishment of the panel;
                (2) the identity of the persons serving on the panel; and
                (3) whether there was any departure from the rule of
            consensus with respect to the selection of persons to serve on
            the panel.
        (e) Notice of Appeals of Panel Reports.--If an appeal is taken of a
    report of a panel in a proceeding described in subsection (d), the
    Trade Representative shall, promptly after the notice of appeal is
    filed, notify the appropriate congressional committees of--
                (1) the issues under appeal; and
                (2) the identity of the persons serving on the Appellate
            Body who are reviewing the report of the panel.
        (f) Actions Upon Circulation of Reports.--Promptly after the
    circulation of a report of a panel or of the Appellate Body to WTO
    members in a proceeding described in subsection (d), the Trade
    Representative shall--
                (1) notify the appropriate congressional committees of the
            report;
                (2) in the case of a report of a panel, consult with the
            appropriate congressional committees concerning the nature of
            any appeal that may be taken of the report; and
                (3) if the report is adverse to the United States, consult
            with the appropriate congressional committees concerning
            whether to implement the report's recommendation and, if so,
            the manner of such implementation and the period of time needed
            for such implementation.
        (g) Requirements for Agency Action.--
                (1) Changes in agency regulations or practice.--In any case
            in which a dispute settlement panel or the Appellate Body finds
            in its report that a regulation or practice of a department or
            agency of the United States is inconsistent with any of the
            Uruguay Round Agreements, that regulation or practice may not
            be amended, rescinded, or otherwise modified in the
            implementation of such report unless and until--
                        (A) the appropriate congressional committees have
                    been consulted under subsection (f);
                        (B) the Trade Representative has sought advice
                    regarding the modification from relevant private sector
                    advisory committees established under section 135 of
                    the Trade Act of 1974 (19 U.S.C. 2155);
                        (C) the head of the relevant department or agency
                    has provided an opportunity for public comment by
                    publishing in the Federal Register the proposed
                    modification and the explanation for the modification;
                        (D) the Trade Representative has submitted to the
                    appropriate congressional committees a report
                    describing the proposed modification, the reasons for
                    the modification, and a summary of the advice obtained
                    under subparagraph (B) with respect to the
                    modification;
                        (E) the Trade Representative and the head of the
                    relevant department or agency have consulted with the
                    appropriate congressional committees on the proposed
                    contents of the final rule or other modification; and
                        (F) the final rule or other modification has been
                    published in the Federal Register.
                (2) Effective date of modification.--A final rule or other
            modification to which paragraph (1) applies may not go into
            effect before the end of the 60-day period beginning on the
            date on which consultations under paragraph (1)(E) begin,
            unless the President determines that an earlier effective date
            is in the national interest.
                (3) Vote by congressional committees.--During the 60-day
            period described in paragraph (2), the Committee on Ways and
            Means of the House of Representatives and the Committee on
            Finance of the Senate may vote to indicate the agreement or
            disagreement of the committee with the proposed contents of the
            final rule or other modification. Any such vote shall not be
            binding on the department or agency which is implementing the
            rule or other modification.
                (4) Inapplicability to itc.--This subsection does not apply
            to any regulation or practice of the International Trade
            Commission.
        (h) Consultations Regarding Review of WTO Rules and Procedures.--
    Before the review is conducted of the dispute settlement rules and
    procedures of the WTO that is provided for in the Decision on the
    Application of the Understanding on Rules and Procedures Governing the
    Settlement of Disputes, as such decision is set forth in the
    Ministerial Declarations and Decisions adopted on April 15, 1994,
    together with the Uruguay Round Agreements, the Trade Representative
    shall consult with the congressional committees regarding the policy of
    the United States concerning the review.

    SEC. 124. ANNUAL REPORT ON THE WTO.

        Not later than March 1 of each year beginning in 1996, the Trade
    Representative shall submit to the Congress a report describing, for
    the preceding fiscal year of the WTO--
                (1) the major activities and work programs of the WTO,
            including the functions and activities of the committees
            established under article IV of the WTO Agreement, and the
            expenditures made by the WTO in connection with those
            activities and programs;
                (2) the percentage of budgetary assessments by the WTO that
            were accounted for by each WTO member country, including the
            United States;
                (3) the total number of personnel employed or retained by
            the Secretariat of the WTO, and the number of professional,
            administrative, and support staff of the WTO;
                (4) for each personnel category described in paragraph (3),
            the number of citizens of each country, and the average salary
            of the personnel, in that category;
                (5) each report issued by a panel or the Appellate Body in
            a dispute settlement proceeding regarding Federal or State law,
            and any efforts by the Trade Representative to provide for
            implementation of the recommendations contained in a report
            that is adverse to the United States;
                (6) each proceeding before a panel or the Appellate Body
            that was initiated during that fiscal year regarding Federal or
            State law, the status of the proceeding, and the matter at
            issue;
                (7) the status of consultations with any State whose law
            was the subject of a report adverse to the United States that
            was issued by a panel or the Appellate Body; and
                (8) any progress achieved in increasing the transparency of
            proceedings of the Ministerial Conference and the General
            Council, and of dispute settlement proceedings conducted
            pursuant to the Dispute Settlement Understanding.

    SEC. 125. REVIEW OF PARTICIPATION IN THE WTO.

        (a) Report on the Operation of the WTO.--The first annual report
    submitted to the Congress under section 124--
                (1) after the end of the 5-year period beginning on the
            date on which the WTO Agreement enters into force with respect
            to the United States, and
                (2) after the end of every 5-year period thereafter,
    shall include an analysis of the effects of the WTO Agreement on the
    interests of the United States, the costs and benefits to the United
    States of its participation in the WTO, and the value of the continued
    participation of the United States in the WTO.
        (b) Congressional Disapproval of U.S. Participation in the WTO.--
                (1) General rule.--The approval of the Congress, provided
            under section 101(a), of the WTO Agreement shall cease to be
            effective if, and only if, a joint resolution described in
            subsection (c) is enacted into law pursuant to the provisions
            of paragraph (2).
                (2) Procedural provisions.--(A) The requirements of this
            paragraph are met if the joint resolution is enacted under
            subsection (c), and--
                        (i) the Congress adopts and transmits the joint
                    resolution to the President before the end of the 90-
                    day period (excluding any day described in section
                    154(b) of the Trade Act of 1974), beginning on the date
                    on which the Congress receives a report referred to in
                    subsection (a), and
                        (ii) if the President vetoes the joint resolution,
                    each House of Congress votes to override that veto on
                    or before the later of the last day of the 90-day
                    period referred to in clause (i) or the last day of the
                    15-day period (excluding any day described in section
                    154(b) of the Trade Act of 1974) beginning on the date
                    on which the Congress receives the veto message from
                    the President.
                (B) A joint resolution to which this section applies may be
            introduced at any time on or after the date on which the
            President transmits to the Congress a report described in
            subsection (a), and before the end of the 90-day period
            referred to in subparagraph (A).
        (c) Joint Resolutions.--
                (1) Joint resolutions.--For purposes of this section, the
            term ``joint resolution'' means only a joint resolution of the
            2 Houses of Congress, the matter after the resolving clause of
            which is as follows: ``That the Congress withdraws its
            approval, provided under section 101(a) of the Uruguay Round
            Agreements Act, of the WTO Agreement as defined in section 2(9)
            of that Act.''.
                (2) Procedures.--(A) Joint resolutions may be introduced in
            either House of the Congress by any member of such House.
                (B) Subject to the provisions of this subsection, the
            provisions of subsections (b), (d), (e), and (f) of section 152
            of the Trade Act of 1974 (19 U.S.C. 2192(b), (d), (e), and (f))
            apply to joint resolutions to the same extent as such
            provisions apply to resolutions under such section.
                (C) If the committee of either House to which a joint
            resolution has been referred has not reported it by the close
            of the 45th day after its introduction (excluding any day
            described in section 154(b) of the Trade Act of 1974), such
            committee shall be automatically discharged from further
            consideration of the joint resolution and it shall be placed on
            the appropriate calendar.
                (D) It is not in order for--
                        (i) the Senate to consider any joint resolution
                    unless it has been reported by the Committee on Finance
                    or the committee has been discharged under subparagraph
                    (C); or
                        (ii) the House of Representatives to consider any
                    joint resolution unless it has been reported by the
                    Committee on Ways and Means or the committee has been
                    discharged under subparagraph (C).
                (E) A motion in the House of Representatives to proceed to
            the consideration of a joint resolution may only be made on the
            second legislative day after the calendar day on which the
            Member making the motion announces to the House his or her
            intention to do so.
                (3) Consideration of second resolution not in order.--It
            shall not be in order in either the House of Representatives or
            the Senate to consider a joint resolution (other than a joint
            resolution received from the other House), if that House has
            previously adopted a joint resolution under this section.
        (d) Rules of House of Representatives and Senate.--This section is
    enacted by the Congress--
                (1) as an exercise of the rulemaking power of the House of
            Representatives and the Senate, respectively, and as such is
            deemed a part of the rules of each House, respectively, and
            such procedures supersede other rules only to the extent that
            they are inconsistent with such other rules; and
                (2) with the full recognition of the constitutional right
            of either House to change the rules (so far as relating to the
            procedures of that House) at any time, in the same manner, and
            to the same extent as any other rule of that House.

    SEC. 126. INCREASED TRANSPARENCY.

        The Trade Representative shall seek the adoption by the Ministerial
    Conference and General Council of procedures that will ensure broader
    application of the principle of transparency and clarification of the
    costs and benefits of trade policy actions, through the observance of
    open and equitable procedures in trade matters by the Ministerial
    Conference and the General Council, and by the dispute settlement
    panels and the Appellate Body under the Dispute Settlement
    Understanding.

    SEC. 127. ACCESS TO THE WTO DISPUTE SETTLEMENT PROCESS.

        (a) In General.--Whenever the United States is a party before a
    dispute settlement panel established pursuant to Article 6 of the
    Dispute Settlement Understanding, the Trade Representative shall, at
    each stage of the proceeding before the panel or the Appellate Body,
    consult with the appropriate congressional committees, the petitioner
    (if any) under section 302(a) of the Trade Act of 1974 (19 U.S.C. 2412)
    with respect to the matter that is the subject of the proceeding, and
    relevant private sector advisory committees established under section
    135 of the Trade Act of 1974 (19 U.S.C. 2155), and shall consider the
    views of representatives of appropriate interested private sector and
    nongovernmental organizations concerning the matter.
        (b) Notice and Public Comment.--In any proceeding described in
    subsection (a), the Trade Representative shall--
                (1) promptly after requesting the establishment of a panel,
            or receiving a request from another WTO member country for the
            establishment of a panel, publish a notice in the Federal
            Register--
                        (A) identifying the initial parties to the dispute,
                        (B) setting forth the major issues raised by the
                    country requesting the establishment of a panel and the
                    legal basis of the complaint,
                        (C) identifying the specific measures, including
                    any State or Federal law cited in the request for
                    establishment of the panel, and
                        (D) seeking written comments from the public
                    concerning the issues raised in the dispute; and
                (2) take into account any advice received from appropriate
            congressional committees and relevant private sector advisory
            committees referred to in subsection (a), and written comments
            received pursuant to paragraph (1)(D), in preparing United
            States submissions to the panel or the Appellate Body.
        (c) Access to Documents.--In each proceeding described in
    subsection (a), the Trade Representative shall--
                (1) make written submissions by the United States referred
            to in subsection (b) available to the public promptly after
            they are submitted to the panel or Appellate Body, except that
            the Trade Representative is authorized to withhold from
            disclosure any information contained in such submissions
            identified by the provider of the information as proprietary
            information or information treated as confidential by a foreign
            government;
                (2) request each other party to the dispute to permit the
            Trade Representative to make that party's written submissions
            to the panel or the Appellate Body available to the public; and
                (3) make each report of the panel or the Appellate Body
            available to the public promptly after it is circulated to WTO
            members, and inform the public of such availability.
        (d) Requests for Nonconfidential Summaries.--In any dispute
    settlement proceeding conducted pursuant to the Dispute Settlement
    Understanding, the Trade Representative shall request each party to the
    dispute to provide nonconfidential summaries of its written
    submissions, if that party has not made its written submissions public,
    and shall make those summaries available to the public promptly after
    receiving them.
        (e) Public File.--The Trade Representative shall maintain a file
    accessible to the public on each dispute settlement proceeding to which
    the United States is a party that is conducted pursuant to the Dispute
    Settlement Understanding. The file shall include all United States
    submissions in the proceeding and a listing of any submissions to the
    Trade Representative from the public with respect to the proceeding, as
    well as the report of the dispute settlement panel and the report of
    the Appellate Body.
        (f) Conforming Amendment.--Section 135(a)(1)(B) of the Trade Act of
    1974 (19 U.S.C. 2155(a)(1)(B)) is amended to read as follows:
                        ``(B) the operation of any trade agreement once
                    entered into, including preparation for dispute
                    settlement panel proceedings to which the United States
                    is a party; and''.

    SEC. 128. ADVISORY COMMITTEE PARTICIPATION.

        Section 135(b)(1) of the Trade Act of 1974 (19 U.S.C. 2155(b)(1))
    is amended by inserting ``nongovernmental environmental and
    conservation organizations,'' after ``retailers,''.

    SEC. 129. ADMINISTRATIVE ACTION FOLLOWING WTO PANEL REPORTS.

        (a) Action by United States International Trade Commission.--
                (1) Advisory report.--If a dispute settlement panel finds
            in an interim report under Article 15 of the Dispute Settlement
            Understanding, or the Appellate Body finds in a report under
            Article 17 of that Understanding, that an action by the
            International Trade Commission in connection with a particular
            proceeding is not in conformity with the obligations of the
            United States under the Antidumping Agreement, the Safeguards
            Agreement, or the Agreement on Subsidies and Countervailing
            Measures, the Trade Representative may request the Commission
            to issue an advisory report on whether title VII of the Tariff
            Act of 1930 or title II of the Trade Act of 1974, as the case
            may be, permits the Commission to take steps in connection with
            the particular proceeding that would render its action not
            inconsistent with the findings of the panel or the Appellate
            Body concerning those obligations. The Trade Representative
            shall notify the congressional committees of such request.
                (2) Time limits for report.--The Commission shall transmit
            its report under paragraph (1) to the Trade Repre-sentative--
                        (A) in the case of an interim report described in
                    paragraph (1), within 30 calendar days after the Trade
                    Representative requests the report; and
                        (B) in the case of a report of the Appellate Body,
                    within 21 calendar days after the Trade Representative
                    requests the report.
                (3) Consultations on request for commission
            determination.--If a majority of the Commissioners issues an
            affirmative report under paragraph (1), the Trade
            Representative shall consult with the congressional committees
            concerning the matter.
                (4) Commission determination.--Notwithstanding any
            provision of the Tariff Act of 1930 or title II of the Trade
            Act of 1974, if a majority of the Commissioners issues an
            affirmative report under paragraph (1), the Commission, upon
            the written request of the Trade Representative, shall issue a
            determination in connection with the particular proceeding that
            would render the Commission's action described in paragraph (1)
            not inconsistent with the findings of the panel or Appellate
            Body. The Commission shall issue its determination not later
            than 120 days after the request from the Trade Representative
            is made.
                (5) Consultations on implementation of commission
            determination.--The Trade Representative shall consult with the
            congressional committees before the Commission's determination
            under paragraph (4) is implemented.
                (6) Revocation of order.--If, by virtue of the Commission's
            determination under paragraph (4), an antidumping or
            countervailing duty order with respect to some or all of the
            imports that are subject to the action of the Commission
            described in paragraph (1) is no longer supported by an
            affirmative Commission determination under title VII of the
            Tariff Act of 1930 or this subsection, the Trade Representative
            may, after consulting with the congressional committees under
            paragraph (5), direct the administering authority to revoke the
            antidumping or countervailing duty order in whole or in part.
                (7) Modification of action under title ii of trade act of
            1974.--Section 204(b) of the Trade Act of 1974 (19 U.S.C.
            2254(b)) is amended by adding at the end the following new
            paragraph:
                ``(3) Notwithstanding paragraph (1), the President may,
            after receipt of a Commission determination under section
            129(a)(4) of the Uruguay Round Agreements Act and consulting
            with the Committee on Ways and Means of the House of
            Representatives and the Committee on Finance of the Senate,
            reduce, modify, or terminate action taken under section 203.''.
        (b) Action by Administering Authority.--
                (1) Consultations with administering authority and
            congressional committees.--Promptly after a report by a dispute
            settlement panel or the Appellate Body is issued that contains
            findings that an action by the administering authority in a
            proceeding under title VII of the Tariff Act of 1930 is not in
            conformity with the obligations of the United States under the
            Antidumping Agreement or the Agreement on Subsidies and
            Countervailing Measures, the Trade Representative shall consult
            with the administering authority and the congressional
            committees on the matter.
                (2) Determination by administering authority.--
            Notwithstanding any provision of the Tariff Act of 1930, the
            administering authority shall, within 180 days after receipt of
            a written request from the Trade Representative, issue a
            determination in connection with the particular proceeding that
            would render the administering authority's action described in
            paragraph (1) not inconsistent with the findings of the panel
            or the Appellate Body.
                (3) Consultations before implementation.--Before the
            administering authority implements any determination under
            paragraph (2), the Trade Representative shall consult with the
            administering authority and the congressional committees with
            respect to such determination.
                (4) Implementation of determination.--The Trade
            Representative may, after consulting with the administering
            authority and the congressional committees under paragraph (3),
            direct the administering authority to implement, in whole or in
            part, the determination made under paragraph (2).
        (c) Effects of Determinations; Notice of Implementation.--
                (1) Effects of determinations.--Determinations concerning
            title VII of the Tariff Act of 1930 that are implemented under
            this section shall apply with respect to unliquidated entries
            of the subject merchandise (as defined in section 771 of that
            Act) that are entered, or withdrawn from warehouse, for
            consumption on or after--
                        (A) in the case of a determination by the
                    Commission under subsection (a)(4), the date on which
                    the Trade Representative directs the administering
                    authority under subsection (a)(6) to revoke an order
                    pursuant to that determination, and
                        (B) in the case of a determination by the
                    administering authority under subsection (b)(2), the
                    date on which the Trade Representative directs the
                    administering authority under subsection (b)(4) to
                    implement that determination.
                (2) Notice of implementation.--
                        (A) The administering authority shall publish in
                    the Federal Register notice of the implementation of
                    any determination made under this section with respect
                    to title VII of the Tariff Act of 1930.
                        (B) The Trade Representative shall publish in the
                    Federal Register notice of the implementation of any
                    determination made under this section with respect to
                    title II of the Trade Act of 1974.
        (d) Opportunity for Comment by Interested Parties.--Prior to
    issuing a determination under this section, the administering authority
    or the Commission, as the case may be, shall provide interested parties
    with an opportunity to submit written comments and, in appropriate
    cases, may hold a hearing, with respect to the determination.
        (e) Judicial or Binational Panel Review.--
                (1) Review of determinations on record.--Section 516A(a)(2)
            of the Tariff Act of 1930 (19 U.S.C. 1516a(a)(2)) is amended--
                        (A) in subparagraph (A)(i)--
                                (i) in subclause (I) by striking ``(B),
                            or'' and inserting ``(B)'', and
                                (ii) by adding after subclause (II) the
                            following:
                                        ``(III) notice of the
                                    implementation of any determination
                                    described in clause (vii) of
                                    subparagraph (B), or''; and
                        (B) in subparagraph (B), by adding at the end the
                    following new clause:
                                ``(vii) A determination by the
                            administering authority or the Commission under
                            section 129 of the Uruguay Round Agreements Act
                            concerning a deter-mination under title VII of
                            the Tariff Act of 1930.''.
                (2) Time limits for cases involving free trade area
            countries.--Section 516A(a)(5) of the Tariff Act of 1930 (19
            U.S.C. 1516a(a)(5)) is amended by adding at the end the
            following new subparagraph:
                        ``(E) For a determination described in clause (vii)
                    of paragraph (2)(B), the 31st day after the date on
                    which notice of the implementation of the determination
                    is published in the Federal Register.''.
                (3) Review of cases involving free trade area country
            merchandise.--Section 516A(g)(8)(A)(i) of the Tariff Act of
            1930 (19 U.S.C. 1516a(g)(8)(A)(i)) is amended by striking
            ``subparagraph (A) or (B)'' and inserting ``subparagraph (A),
            (B), or (E)''.

    SEC. 130. EFFECTIVE DATE.

        This subtitle and the amendments made by this subtitle take effect
    on the date on which the WTO Agreement enters into force with respect
    to the United States.

                         Subtitle D--Related Provisions

    SEC. 131. WORKING PARTY ON WORKER RIGHTS.

        (a) In General.--The President shall seek the establishment in the
    GATT 1947, and, upon entry into force of the WTO Agreement with respect
    to the United States, in the WTO, of a working party to examine the
    relationship of internationally recognized worker rights, as defined in
    section 502(a)(4) of the Trade Act of 1974, to the articles,
    objectives, and related instruments of the GATT 1947 and of the WTO,
    respectively.
        (b) Objectives of Working Party.--The objectives of the United
    States for the working party described in subsection (a) are to--
                (1) explore the linkage between international trade and
            internationally recognized worker rights, as defined in section
            502(a)(4) of the Trade Act of 1974, taking into account
            differences in the level of development among countries;
                (2) examine the effects on international trade of the
            systematic denial of such rights;
                (3) consider ways to address such effects; and
                (4) develop methods to coordinate the work program of the
            working party with the International Labor Organization.
        (c) Report to Congress.--The President shall report to the
    Congress, not later than 1 year after the date of the enactment of this
    Act, on the progress made in establishing the working party under this
    section, and on United States objectives with respect to the working
    party's work program.

    SEC. 132. IMPLEMENTATION OF RULES OF ORIGIN WORK PROGRAM.

        If the President enters into an agreement developed under the work
    program described in Article 9 of the Agreement on Rules of Origin
    referred to in section 101(d)(10), the President may implement United
    States obligations under such an agreement under United States law only
    pursuant to authority granted to the President for that purpose by law
    enacted after the effective date of this title.

    SEC. 133. MEMBERSHIP IN WTO OF BOYCOTTING COUNTRIES.

        It is the sense of the Congress that the Trade Representative
    should vigorously oppose the admission into the World Trade
    Organization of any country which, through its laws, regulations,
    official policies, or governmental practices, fosters, imposes,
    complies with, furthers, or supports any boycott described in section
    8(a) of the Export Administration Act of 1979 (50 U.S.C. App. 2407(a))
    (as in effect on August 20, 1994), including requiring or encouraging
    entities within that country to refuse to do business with persons who
    do not comply with requests to take any action prohibited under that
    section.

    SEC. 134. AFRICA TRADE AND DEVELOPMENT POLICY.

        (a) Development of Policy.--The President should develop and
    implement a comprehensive trade and development policy for the
    countries of Africa.
        (b) Reports to Congress.--The President shall, not later than 12
    months after the date of the enactment of this Act and annually
    thereafter for a period of 4 years, submit to the Committee on Ways and
    Means and the Committee on Foreign Affairs of the House of
    Representatives, the Committee on Finance and the Committee on Foreign
    Relations of the Senate, and other appropriate committees of the
    Congress, a report on the steps taken to carry out subsection (a).

    SEC. 135. OBJECTIVES FOR EXTENDED NEGOTIATIONS.

        (a) Trade in Financial Services.--The principal negotiating
    objective of the United States in the extended negotiations on
    financial services to be conducted under the auspices of the WTO is to
    seek to secure commitments, from a wide range of commercially important
    developed and developing countries, to reduce or eliminate barriers to
    the supply of financial services, including barriers that deny national
    treatment or market access by restricting the establishment or
    operation of financial services providers, as the condition for the
    United States--
                (1) offering commitments to provide national treatment and
            market access in each of the financial services subsectors, and
                (2) making such commitments on a most-favored-nation basis.
        (b) Trade in Basic Telecommunications Services.--The principal
    negotiating objective of the United States in the extended negotiations
    on basic telecommunications services to be conducted under the auspices
    of the WTO is to obtain the opening on nondiscriminatory terms and
    conditions of foreign markets for basic telecommunications services
    through facilities-based competition or through the resale of services
    on existing networks.
        (c) Trade in Civil Aircraft.--
                (1) Negotiations.--The principal negotiating objectives of
            the United States in the extended negotiations on trade in
            civil aircraft to be conducted under the auspices of the WTO
            are--
                        (A) to obtain competitive opportunities for United
                    States exports in foreign markets substantially
                    equivalent to those afforded to foreign products in the
                    United States,
                        (B) to obtain the reduction or elimination of
                    specific tariff and nontariff barriers, including
                    through expanded membership in the Agreement on Trade
                    in Civil Aircraft and in the US-EC bilateral agreement
                    for large civil aircraft,
                        (C) to maintain vigorous and effective disciplines
                    on subsidies practices with respect to civil aircraft
                    products under the Agreement on Subsidies and
                    Countervailing Measures referred to in section
                    101(d)(12),
                        (D) to maintain the scope and coverage on indirect
                    support as specified in the US-EC bilateral agreement
                    on large civil aircraft, and
                        (E) to obtain increased transparency with respect
                    to foreign subsidy programs in the civil aircraft
                    sector, both through greater government disclosure with
                    respect to the use of taxpayer moneys and higher
                    financial disclosure standards for companies receiving
                    government supports (including disclosure comparable to
                    that required under United States securities laws).
                (2) Definitions.--For purposes of paragraph (1)--
                        (A) the term ``civil aircraft'' means those
                    products to which the Agreement on Trade in Civil
                    Aircraft applies,
                        (B) the term ``large civil aircraft'' has the
                    meaning given that term in Annex II to the US-EC
                    bilateral agreement,
                        (C) the term ``indirect support'' means indirect
                    government support as defined in Annex II to the US-EC
                    bilateral agreement,
                        (D) the term ``Agreement on Trade in Civil
                    Aircraft'' means the Agreement on Trade in Civil
                    Aircraft approved by the Congress under section 2 of
                    the Trade Agreements Act of 1979, and
                        (E) the term ``US-EC bilateral agreement'' means
                    the Agreement Concerning the Application of the GATT
                    Agreement on Trade in Civil Aircraft Between the
                    European Economic Community and the Government of the
                    United States of America on trade in large civil
                    aircraft, entered into on July 17, 1992.

    SEC. 136. REPEAL OF TAX ON IMPORTED PERFUMES; DRAWBACK OF TAX ON
                  DISTILLED SPIRITS USED IN PERFUME MANUFACTURE.

        (a) Repeal of Tax on Imported Perfumes.--Subsection (a) of section
    5001 of the Internal Revenue Code of 1986 is amended by striking
    paragraph (3) and redesignating the following paragraphs accordingly.
        (b) Drawback of Tax on Distilled Spirits Used in Perfume
    Manufacture.--Sections 5131(a), 5132, 5134(c)(1), and 7652(g) of such
    Code are each amended by striking ``or flavoring extracts'' and
    inserting ``flavoring extracts, or perfume''.
        (c) Conforming Amendments.--
                (1) Subsection (b) of section 5002 of such Code is amended
            by striking paragraph (1) and redesignating the following
            paragraphs accordingly.
                (2) Subsection (f) of section 5005 of such Code is
            amended--
                        (A) by striking ``section 5001(a)(6) and (7)'' in
                    paragraph (3) and inserting ``section 5001(a)(5) and
                    (6)'', and
                        (B) by striking ``section 5001(a)(5)'' in paragraph
                    (4) and inserting ``section 5001(a)(4)''.
                (3) Subsection (b) of section 5007 of such Code is amended
            to read as follows:
        ``(b) Collection of Tax on Imported Distilled Spirits.--The
    internal revenue tax imposed by section 5001(a)(1) and (2) upon
    imported distilled spirits shall be collected by the Secretary and
    deposited as internal revenue collections, under such regulations as
    the Secretary may prescribe. Section 5688 shall be applicable to the
    disposition of imported spirits.''.
                (4) Paragraph (3) of section 5007(c) of such Code is
            amended by striking ``section 5001(a)(5), (6), and (7)'' and
            inserting ``section 5001(a)(4), (5), and (6)''.
                (5) Paragraph (1) of section 5061(b) of such Code is
            amended to read as follows:
                ``(1) section 5001(a)(4), (5), or (6),''.
        (d) Effective Date.--The amendments made by this section shall take
    effect on January 1, 1995.

    SEC. 137. CERTAIN NONRUBBER FOOTWEAR.

        In the case of nonrubber footwear imported from Brazil--
                (1) which is subject to Treasury Decision 74-233, dated
            September 9, 1974,
                (2) which was entered, or withdrawn from warehouse for
            consumption, on or before October 28, 1981, and
                (3) with respect to which entries are unliquidated on the
            date of the enactment of this Act,
    countervailing duties shall be assessed at rates equal to the amount of
    the cash deposit of the estimated countervailing duties required on
    such footwear at the time of entry or withdrawal from warehouse for
    consumption. Interest on underpayments of amounts required to be
    deposited as countervailing duties shall be paid in accordance with
    section 778 of the Tariff Act of 1930 (19 U.S.C. 1677g).

    SEC. 138. EFFECTIVE DATE.

        (a) In General.--Except as provided in section 136(d) and
    subsection (b) of this section, this subtitle and the amendments made
    by this subtitle take effect on the date of the enactment of this Act.
        (b) Sections 132 and 135.--Sections 132 and 135 take effect on the
    date on which the WTO Agreement enters into force with respect to the
    United States.

            TITLE II--ANTIDUMPING AND COUNTERVAILING DUTY PROVISIONS

    SEC. 201. REFERENCE.

        Except as otherwise expressly provided, whenever in this title an
    amendment or repeal is expressed in terms of an amendment to, or repeal
    of, a section or other provision, the reference shall be considered to
    be made to a section or other provision of the Tariff Act of 1930.

                         Subtitle A--General Provisions

    SEC. 211. ACTION WITH RESPECT TO PETITIONS.

        (a) Countervailing Duty Investigations.--Section 702(b) (19 U.S.C.
    1671a(b)) is amended--
                (1) in paragraph (3) by striking ``subsection 702(b)(1)''
            and inserting ``paragraph (1)'', and
                (2) by adding at the end the following:
                ``(4) Action with respect to petitions.--
                        ``(A) Notification of governments.--Upon receipt of
                    a petition filed under paragraph (1), the administering
                    authority shall--
                                ``(i) notify the government of any
                            exporting country named in the petition by
                            delivering a public version of the petition to
                            an appropriate representative of such country;
                            and
                                ``(ii) provide the government of any
                            exporting country named in the petition that is
                            a Subsidies Agreement country an opportunity
                            for consultations with respect to the petition.
                        ``(B) Acceptance of communications.--The
                    administering authority shall not accept any
                    unsolicited oral or written communication from any
                    person other than an interested party described in
                    section 771(9) (C), (D), (E), (F), or (G) before the
                    administering authority makes its decision whether to
                    initiate an investigation, except as provided in
                    subparagraph (A)(ii) and subsection (c)(4)(D), and
                    except for inquiries regarding the status of the
                    administering authority's consideration of the
                    petition.
                        ``(C) Nondisclosure of certain information.--The
                    administering authority and the Commission shall not
                    dis-close information with regard to any draft petition
                    sub-mitted for review and comment before it is filed
                    under paragraph (1).''.
        (b) Antidumping Investigations.--Section 732(b) (19 U.S.C.
    1673a(b)) is amended by adding at the end the following:
                ``(3) Action with respect to petitions.--
                        ``(A) Notification of governments.--Upon receipt of
                    a petition filed under paragraph (1), the administering
                    authority shall notify the government of any exporting
                    country named in the petition by delivering a public
                    version of the petition to an appropriate
                    representative of such country.
                        ``(B) Acceptance of communications.--The
                    administering authority shall not accept any
                    unsolicited oral or written communication from any
                    person other than an interested party described in
                    section 771(9) (C), (D), (E), (F), or (G) before the
                    administering authority makes its decision whether to
                    initiate an investigation, except as provided in
                    subsection (c)(4)(D), and except for inquiries
                    regarding the status of the administering authority's
                    consideration of the petition.
                        ``(C) Nondisclosure of certain information.--The
                    administering authority and the Commission shall not
                    dis-close information with regard to any draft petition
                    sub-mitted for review and comment before it is filed
                    under paragraph (1).''.

    SEC. 212. PETITION AND PRELIMINARY DETERMINATION.

        (a) General Requirements.--
                (1) Countervailing duty petition.--Section 702(c) (19
            U.S.C. 1671a(c)) is amended to read as follows:
        ``(c) Petition Determination.--
                ``(1) In general.--
                        ``(A) Time for initial determination.--Except as
                    provided in subparagraph (B), within 20 days after the
                    date on which a petition is filed under subsection (b),
                    the administering authority shall--
                                ``(i) after examining, on the basis of
                            sources readily available to the administering
                            authority, the accuracy and adequacy of the
                            evidence provided in the petition, determine
                            whether the petition alleges the elements
                            necessary for the imposition of a duty under
                            section 701(a) and contains information
                            reasonably available to the petitioner
                            supporting the allegations, and
                                ``(ii) determine if the petition has been
                            filed by or on behalf of the industry.
                        ``(B) Extension of time.--In any case in which the
                    administering authority is required to poll or
                    otherwise determine support for the petition by the
                    industry under paragraph (4)(D), the administering
                    authority may, in exceptional circumstances, apply
                    subparagraph (A) by substituting `a maximum of 40 days'
                    for `20 days'.
                        ``(C) Time limits where petition involves same
                    merchandise as an order that has been revoked.--If a
                    petition is filed under this section with respect to
                    merchandise that was the subject merchandise of--
                                ``(i) a countervailing duty order that was
                            revoked under section 751(d) in the 24 months
                            preceding the date the petition is filed, or
                                ``(ii) a suspended investigation that was
                            terminated under section 751(d) in the 24
                            months preceding the date the petition is
                            filed,
                    the administering authority and the Commission shall,
                    to the maximum extent practicable, expedite any
                    investigation initiated under this section with respect
                    to the petition.
                ``(2) Affirmative determinations.--If the determinations
            under clauses (i) and (ii) of paragraph (1)(A) are affirmative,
            the administering authority shall initiate an investigation to
            determine whether a countervailable subsidy is being provided
            with respect to the subject merchandise.
                ``(3) Negative determinations.--If the determination under
            clause (i) or (ii) of paragraph (1)(A) is negative, the
            administering authority shall dismiss the petition, terminate
            the proceeding, and notify the petitioner in writing of the
            reasons for the determination.
                ``(4) Determination of industry support.--
                        ``(A) General rule.--For purposes of this
                    subsection, the administering authority shall determine
                    that the petition has been filed by or on behalf of the
                    industry, if--
                                ``(i) the domestic producers or workers who
                            support the petition account for at least 25
                            percent of the total production of the domestic
                            like product, and
                                ``(ii) the domestic producers or workers
                            who support the petition account for more than
                            50 percent of the production of the domestic
                            like product produced by that portion of the
                            industry expressing support for or opposition
                            to the petition.
                        ``(B)  Certain positions disregarded.--
                                ``(i) Producers related to foreign
                            producers.--In determining industry support
                            under subparagraph (A), the administering
                            authority shall disregard the position of
                            domestic producers who oppose the petition, if
                            such producers are related to foreign
                            producers, as defined in section 771(4)(B)(ii),
                            unless such domestic producers demonstrate that
                            their interests as domestic producers would be
                            adversely affected by the imposition of a
                            countervailing duty order.
                                ``(ii) Producers who are importers.--The
                            administering authority may disregard the
                            position of domestic producers of a domestic
                            like product who are importers of the subject
                            merchandise.
                        ``(C) Special rule for regional industries.--If the
                    petition alleges that the industry is a regional
                    industry, the administering authority shall determine
                    whether the petition has been filed by or on behalf of
                    the industry by applying subparagraph (A) on the basis
                    of production in the region.
                        ``(D) Polling the industry.--If the petition does
                    not establish support of domestic producers or workers
                    accounting for more than 50 percent of the total
                    production of the domestic like product, the
                    administering authority shall--
                                ``(i) poll the industry or rely on other
                            information in order to determine if there is
                            support for the petition as required by
                            subparagraph (A), or
                                ``(ii) if there is a large number of
                            producers in the industry, the administering
                            authority may determine industry support for
                            the petition by using any statistically valid
                            sampling method to poll the industry.
                        ``(E) Comments by interested parties.--Before the
                    administering authority makes a determination with
                    respect to initiating an investigation, any person who
                    would qualify as an interested party under section
                    771(9) if an investigation were initiated, may submit
                    comments or information on the issue of industry
                    support. After the administering authority makes a
                    determination with respect to initiating an
                    investigation, the determination regarding industry
                    support shall not be reconsidered.
                ``(5) Definition of domestic producers or workers.--For
            purposes of this subsection, the term `domestic producers or
            workers' means those interested parties who are eligible to
            file a petition under subsection (b)(1)(A).''.
                (2) Antidumping duty petition.--Section 732(c) (19 U.S.C.
            1673a(c)) is amended to read as follows:
        ``(c) Petition Determination.--
                ``(1) In general.--
                        ``(A) Time for initial determination.--Except as
                    provided in subparagraph (B), within 20 days after the
                    date on which a petition is filed under subsection (b),
                    the administering authority shall--
                                ``(i) after examining, on the basis of
                            sources readily available to the administering
                            authority, the accuracy and adequacy of the
                            evidence provided in the petition, determine
                            whether the petition alleges the elements
                            necessary for the imposition of a duty under
                            section 731 and contains information reasonably
                            available to the petitioner supporting the
                            allegations, and
                                ``(ii) determine if the petition has been
                            filed by or on behalf of the industry.
                        ``(B) Extension of time.--In any case in which the
                    administering authority is required to poll or
                    otherwise determine support for the petition by the
                    industry under paragraph (4)(D), the administering
                    authority may, in exceptional circumstances, apply
                    subparagraph (A) by substituting `a maximum of 40 days'
                    for `20 days'.
                        ``(C) Time limits where petition involves same
                    merchandise as an order that has been revoked.--If a
                    petition is filed under this section with respect to
                    merchandise that was the subject merchandise of--
                                ``(i) an antidumping duty order or finding
                            that was revoked under section 751(d) in the 24
                            months preceding the date the petition is
                            filed, or
                                ``(ii) a suspended investigation that was
                            terminated under section 751(d) in the 24
                            months preceding the date the petition is
                            filed,
                    the administering authority and the Commission shall,
                    to the maximum extent practicable, expedite any
                    investigation initiated under this section with respect
                    to the petition.
                ``(2) Affirmative determinations.--If the determinations
            under clauses (i) and (ii) of paragraph (1)(A) are affirmative,
            the administering authority shall initiate an investigation to
            determine whether the subject merchandise is being, or is
            likely to be, sold in the United States at less than its fair
            value.
                ``(3) Negative determinations.--If the determination under
            clause (i) or (ii) of paragraph (1)(A) is negative, the
            administering authority shall dismiss the petition, terminate
            the proceeding, and notify the petitioner in writing of the
            reasons for the determination.
                ``(4) Determination of industry support.--
                        ``(A) General rule.--For purposes of this
                    subsection, the administering authority shall determine
                    that the petition has been filed by or on behalf of the
                    industry, if--
                                ``(i) the domestic producers or workers who
                            support the petition account for at least 25
                            percent of the total production of the domestic
                            like product, and
                                ``(ii) the domestic producers or workers
                            who support the petition account for more than
                            50 percent of the production of the domestic
                            like product produced by that portion of the
                            industry expressing support for or opposition
                            to the petition.
                        ``(B)  Certain positions disregarded.--
                                ``(i) Producers related to foreign
                            producers.--In determining industry support
                            under subparagraph (A), the administering
                            authority shall disregard the position of
                            domestic producers who oppose the petition, if
                            such producers are related to foreign
                            producers, as defined in section 771(4)(B)(ii),
                            unless such domestic producers demonstrate that
                            their interests as domestic producers would be
                            adversely affected by the imposition of an
                            antidumping duty order.
                                ``(ii) Producers who are importers.--The
                            administering authority may disregard the
                            position of domestic producers of a domestic
                            like product who are importers of the subject
                            merchandise.
                        ``(C) Special rule for regional industries.--If the
                    petition alleges the industry is a regional industry,
                    the administering authority shall determine whether the
                    petition has been filed by or on behalf of the industry
                    by applying subparagraph (A) on the basis of production
                    in the region.
                        ``(D) Polling the industry.--If the petition does
                    not establish support of domestic producers or workers
                    accounting for more than 50 percent of the total
                    production of the domestic like product, the
                    administering authority shall--
                                ``(i) poll the industry or rely on other
                            information in order to determine if there is
                            support for the petition as required by
                            subparagraph (A), or
                                ``(ii) if there is a large number of
                            producers in the industry, the administering
                            authority may determine industry support for
                            the petition by using any statistically valid
                            sampling method to poll the industry.
                        ``(E) Comments by interested parties.--Before the
                    administering authority makes a determination with
                    respect to initiating an investigation, any person who
                    would qualify as an interested party under section
                    771(9) if an investigation were initiated, may submit
                    comments or information on the issue of industry
                    support. After the administering authority makes a
                    determination with respect to initiating an
                    investigation, the determination regarding industry
                    support shall not be reconsidered.
                ``(5) Definition of domestic producers or workers.--For
            purposes of this subsection, the term `domestic producers or
            workers' means those interested parties who are eligible to
            file a petition under subsection (b)(1)(A).''.
        (b) Determination by the Commission of Reasonable Indication of
    Injury; Preliminary Determination by the Administering Authority.--
                (1) Countervailing duty investigations.--
                        (A) Section 703(a) (19 U.S.C. 1671b(a)) is amended
                    to read as follows:
        ``(a) Determination by Commission of Reasonable Indication of
    Injury.--
                ``(1) General rule.--Except in the case of a petition
            dismissed by the administering authority under section
            702(c)(3), the Commission, within the time specified in
            paragraph (2), shall determine, based on the information
            available to it at the time of the determination, whether there
            is a reasonable indication that--
                        ``(A) an industry in the United States--
                                ``(i) is materially injured, or
                                ``(ii) is threatened with material injury,
                            or
                        ``(B) the establishment of an industry in the
                    United States is materially retarded,
            by reason of imports of the subject merchandise and that
            imports of the subject merchandise are not negligible. If the
            Commission finds that imports of the subject merchandise are
            negligible or otherwise makes a negative determination under
            this paragraph, the investigation shall be terminated.
                ``(2) Time for commission determination.--The Commission
            shall make the determination described in paragraph (1)--
                        ``(A) in the case of a petition filed under section
                    702(b)--
                                ``(i) within 45 days after the date on
                            which the petition is filed, or
                                ``(ii) if the time has been extended
                            pursuant to section 702(c)(1)(B), within 25
                            days after the date on which the Commission
                            receives notice from the administering
                            authority of initiation of the investigation,
                            and
                        ``(B) in the case of an investigation initiated
                    under section 702(a), within 45 days after the date on
                    which the Commission receives notice from the
                    administering authority that an investigation has been
                    initiated under such section.''.
                        (B) Section 705(b)(1) (19 U.S.C. 1671d(b)(1)) is
                    amended by adding at the end the following: ``If the
                    Commission determines that imports of the subject
                    merchandise are negligible, the investigation shall be
                    terminated.''.
                        (C) Section 703(b) (19 U.S.C. 1671b(b)) is
                    amended--
                                (i) in paragraph (1)--
                                        (I) by striking ``85 days after the
                                    date on which the petition is filed
                                    under section 702(b)'' and inserting
                                    ``65 days after the date on which the
                                    administering authority initiates an
                                    investigation under section 702(c)'';
                                        (II) by striking ``best
                                    information'' and inserting
                                    ``information''; and
                                        (III) by striking the last
                                    sentence; and
                                (ii) in paragraph (2), by striking ``85
                            days after the date on which the petition is
                            filed under section 702(b)'' and inserting ``65
                            days after the date on which the administering
                            authority initiates an investigation under
                            section 702(c)''.
                        (D) Section 703(c)(1) (19 U.S.C. 1671b(c)) is
                    amended by striking ``150th day after the date on which
                    a petition is filed under section 702(b)'' and
                    inserting ``130th day after the date on which the
                    administering authority initiates an investigation
                    under section 702(c)''.
                        (E) Section 702(b)(3) (19 U.S.C. 1671a(b)(3)) is
                    amended by striking ``twenty days'' and inserting ``5
                    days after the date on which the administering
                    authority initiates an investigation under subsection
                    (c),''.
                        (F) Section 703(f) (19 U.S.C. 1671b(f)) is amended
                    to read as follows:
        ``(f) Notice of Determination.--Whenever the Commission or the
    administering authority makes a determination under this section, the
    Commission or the administering authority, as the case may be, shall
    notify the petitioner, and other parties to the investigation, and the
    Commission or the administering authority (whichever is appropriate) of
    its determination. The administering authority shall include with such
    notification the facts and conclusions on which its determination is
    based. Not later than 5 days after the date on which the determination
    is required to be made under subsection (a)(2), the Commission shall
    transmit to the administering authority the facts and conclusions on
    which its determination is based.''.
                (2) Antidumping duty investigations.--
                        (A) Section 733(a) (19 U.S.C. 1673b(a)) is amended
                    to read as follows:
        ``(a) Determination by Commission of Reasonable Indication of
    Injury.--
                ``(1) General rule.--Except in the case of a petition
            dismissed by the administering authority under section
            732(c)(3), the Commission, within the time specified in
            paragraph (2), shall determine, based on the information
            available to it at the time of the determination, whether there
            is a reasonable indication that--
                        ``(A) an industry in the United States--
                                ``(i) is materially injured, or
                                ``(ii) is threatened with material injury,
                            or
                        ``(B) the establishment of an industry in the
                    United States is materially retarded,
            by reason of imports of the subject merchandise and that
            imports of the subject merchandise are not negligible. If the
            Commission finds that imports of the subject merchandise are
            negligible or otherwise makes a negative determination under
            this paragraph, the investigation shall be terminated.
                ``(2) Time for commission determination.--The Commission
            shall make the determination described in paragraph (1)--
                        ``(A) in the case of a petition filed under section
                    732(b)--
                                ``(i) within 45 days after the date on
                            which the petition is filed, or
                                ``(ii) if the time has been extended
                            pursuant to section 732(c)(1)(B), within 25
                            days after the date on which the Commission
                            receives notice from the administering
                            authority of initiation of the investigation,
                            and
                        ``(B) in the case of an investigation initiated
                    under section 732(a), within 45 days after the date on
                    which the Commission receives notice from the
                    administering authority that an investigation has been
                    initiated under such section.''.
                        (B) Section 735(b)(1) (19 U.S.C. 1673d(b)(1)) is
                    amended by adding at the end the following: ``If the
                    Commission determines that imports of the subject
                    merchandise are negligible, the investigation shall be
                    terminated.''.
                        (C) Section 733(b)(1) (19 U.S.C. 1673b(b)(1)) is
                    amended--
                                (i) in subparagraph (A)--
                                        (I) by striking ``160 days after
                                    the date on which a petition is filed
                                    under section 732(b)'' and inserting
                                    ``140 days after the date on which the
                                    administering authority initiates an
                                    investigation under section 732(c)'';
                                    and
                                        (II) by striking ``best
                                    information'' and inserting
                                    ``information''; and
                                (ii) in subparagraph (B)--
                                        (I) by striking ``120'' and
                                    inserting ``100'';
                                        (II) by striking ``160'' and
                                    inserting ``140'';
                                        (III) by striking ``100'' and
                                    inserting ``80''; and
                                        (IV) by striking ``160'' and
                                    inserting ``140''.
                        (D) Section 733(c)(1) (19 U.S.C. 1673b(c)(1)) is
                    amended by striking ``210th day after the date on which
                    a petition is filed under section 732(b)'' and
                    inserting ``190th day after the date on which the
                    administering authority initiates an investigation
                    under section 732(c)''.
                        (E) Section 733(f) (19 U.S.C. 1673b(f)) is amended
                    to read as follows:
        ``(f) Notice of Determination.--Whenever the Commission or the
    administering authority makes a determination under this section, the
    Commission or the administering authority, as the case may be, shall
    notify the petitioner, and other parties to the investigation, and the
    Commission or the administering authority (whichever is appropriate) of
    its determination. The administering authority shall include with such
    notification the facts and conclusions on which its determination is
    based. Not later than 5 days after the date on which the determination
    is required to be made under subsection (a)(2), the Commission shall
    transmit to the administering authority the facts and conclusions on
    which its determination is based.''.

    SEC. 213. DE MINIMIS DUMPING MARGIN.

        (a) Preliminary Determinations.--Section 733(b) (19 U.S.C.
    1673b(b)) is amended by adding at the end the following new paragraph:
                ``(3) De minimis dumping margin.--In making a determination
            under this subsection, the administering authority shall
            disregard any weighted average dumping margin that is de
            minimis. For purposes of the preceding sentence, a weighted
            average dumping margin is de minimis if the administering
            authority determines that it is less than 2 percent ad valorem
            or the equivalent specific rate for the subject merchandise.''.
        (b) Final Determinations.--Section 735(a) (19 U.S.C. 1673d(a)) is
    amended by adding at the end the following new paragraph:
                ``(4) De minimis dumping margin.--In making a determination
            under this subsection, the administering authority shall
            disregard any weighted average dumping margin that is de
            minimis as defined in section 733(b)(3).''.

    SEC. 214. CRITICAL CIRCUMSTANCES.

        (a) Countervailing Duty Investigations.--
                (1) Preliminary determinations.--Section 703(e)(1) (19
            U.S.C. 1671b(e)(1)) is amended--
                        (A) in the matter preceding subparagraph (A) by
                    striking ``best information'' and inserting
                    ``information''; and
                        (B) by amending subparagraphs (A) and (B) to read
                    as follows:
                        ``(A) the alleged countervailable subsidy is
                    inconsistent with the Subsidies Agreement, and
                        ``(B) there have been massive imports of the
                    subject merchandise over a relatively short period.''.
                (2) Final determinations.--(A) Section 705(a)(2) (19 U.S.C.
            1671d(a)(2)) is amended--
                        (i) in subparagraph (A) by inserting ``Subsidies''
                    before ``Agreement''; and
                        (ii) in subparagraph (B) by striking ``class or
                    kind of merchandise involved'' and inserting ``subject
                    merchandise''.
                (B) Section 705(b)(4)(A) (19 U.S.C. 1671d(b)(4)) is amended
            to read as follows:
                        ``(A) Commission standard for retroactive
                    application.--
                                ``(i) In general.--If the finding of the
                            administering authority under subsection (a)(2)
                            is affirmative, then the final determination of
                            the Commission shall include a finding as to
                            whether the imports subject to the affirmative
                            determination under subsection (a)(2) are
                            likely to undermine seriously the remedial
                            effect of the countervailing duty order to be
                            issued under section 706.
                                ``(ii) Factors to consider.--In making the
                            evaluation under clause (i), the Commission
                            shall consider, among other factors it
                            considers relevant--
                                        ``(I) the timing and the volume of
                                    the imports,
                                        ``(II) any rapid increase in
                                    inventories of the imports, and
                                        ``(III) any other circumstances
                                    indicating that the remedial effect of
                                    the countervailing duty order will be
                                    seriously undermined.''.
        (b) Antidumping Investigations.--
                (1) Preliminary determinations.--Section 733(e)(1) (19
            U.S.C. 1673b(e)(1)) is amended--
                        (A) in the matter preceding subparagraph (A) by
                    striking ``best information'' and inserting
                    ``information''; and
                        (B) by amending subparagraphs (A) and (B) to read
                    as follows:
                        ``(A)(i) there is a history of dumping and material
                    injury by reason of dumped imports in the United States
                    or elsewhere of the subject merchandise, or
                        ``(ii) the person by whom, or for whose account,
                    the merchandise was imported knew or should have known
                    that the exporter was selling the subject merchandise
                    at less than its fair value and that there was likely
                    to be material injury by reason of such sales, and
                        ``(B) there have been massive imports of the
                    subject merchandise over a relatively short period.''.
                (2) Final determinations.--(A) Section 735(a)(3) (19 U.S.C.
            1673d(a)(3)) is amended--
                        (i) in clause (i) of subparagraph (A)--
                                (I) by inserting ``and material injury by
                            reason of dumped imports'' after ``history of
                            dumping''; and
                                (II) by striking ``class or kind of the
                            merchandise which is the subject of the
                            investigation'' and inserting ``subject
                            merchandise'';
                        (ii) in clause (ii) of subparagraph (A) by striking
                    ``merchandise which is the subject of the investigation
                    at less than its fair value'' and inserting ``subject
                    merchandise at less than its fair value and that there
                    would be material injury by reason of such sales''; and
                        (iii) in subparagraph (B) by striking ``merchandise
                    which is the subject of the investigation'' and
                    inserting ``subject merchandise''.
                (B) Section 735(b)(4)(A) (19 U.S.C. 1673d(b)(4)(A)) is
            amended to read as follows:
                        ``(A) Commission standard for retroactive
                    application.--
                                ``(i) In general.--If the finding of the
                            administering authority under subsection (a)(3)
                            is affirmative, then the final determination of
                            the Commission shall include a finding as to
                            whether the imports subject to the affirmative
                            determination under subsection (a)(3) are
                            likely to undermine seriously the remedial
                            effect of the antidumping duty order to be
                            issued under section 736.
                                ``(ii) Factors to consider.--In making the
                            evaluation under clause (i), the Commission
                            shall consider, among other factors it
                            considers relevant--
                                        ``(I) the timing and the volume of
                                    the imports,
                                        ``(II) a rapid increase in
                                    inventories of the imports, and
                                        ``(III) any other circumstances
                                    indicating that the remedial effect of
                                    the antidumping order will be seriously
                                    undermined.''.

    SEC. 215. PROVISIONAL MEASURES.

        (a) Countervailing Duties.--
                (1) Suspension of liquidation.--Section 703(d) (19 U.S.C.
            1671b(d)) is amended--
                        (A) in paragraph (1), by striking ``warehouse'' and
                    all that follows through ``Register,'' and inserting
                    ``warehouse, for consumption on or after the later of--
                        ``(A) the date on which notice of the determination
                    is published in the Federal Register, or
                        ``(B) the date that is 60 days after the date on
                    which notice of the determination to initiate the
                    investigation is published in the Federal Register,'';
                    and
                        (B) by adding at the end the following:
    ``The instructions of the administering authority under paragraphs (1)
    and (2) may not remain in effect for more than 4 months.''.
                (2) Critical circumstances cases.--Section 703(e)(2) (19
            U.S.C. 1671b(e)(2)) is amended by striking ``warehouse, for
            consumption on or after the date which is 90 days before the
            date on which suspension of liquidation was first ordered.''
            and inserting ``warehouse, for consumption on or after the
            later of--
                        ``(A) the date which is 90 days before the date on
                    which the suspension of liquidation was first ordered,
                    or
                        ``(B) the date on which notice of the determination
                    to initiate the investigation is published in the
                    Federal Register.''.
        (b) Antidumping Duties.--
                (1) Suspension of liquidation.--Section 733(d) (19 U.S.C.
            1673b(d)) is amended--
                        (A) in paragraph (1), by striking ``warehouse'' and
                    all that follows through ``Register,'' and inserting
                    ``warehouse, for consumption on or after the later of--
                        ``(A) the date on which notice of the determination
                    is published in the Federal Register, or
                        ``(B) the date that is 60 days after the date on
                    which notice of the determination to initiate the
                    investigation is published in the Federal Register,'';
                    and
                        (B) by adding at the end the following:
    ``The instructions of the administering authority under paragraphs (1)
    and (2) may not remain in effect for more than 4 months, except that
    the administering authority may, at the request of exporters
    representing a significant proportion of exports of the subject
    merchandise, extend that 4-month period to not more than 6 months.''.
                (2) Critical circumstances cases.--Section 733(e)(2) (19
            U.S.C. 1673b(e)(2)) is amended by striking ``warehouse, for
            consumption on or after the date which is 90 days before the
            date on which suspension of liquidation was first ordered.''
            and inserting ``warehouse, for consumption on or after the
            later of--
                        ``(A) the date which is 90 days before the date on
                    which the suspension of liquidation was first ordered,
                    or
                        ``(B) the date on which notice of the determination
                    to initiate the investigation is published in the
                    Federal Register.''.

    SEC. 216. CONDITIONS ON ACCEPTANCE OF SUSPENSION AGREEMENTS.

        (a) Countervailing Duties.--Section 704(d)(1) (19 U.S.C.
    1671c(d)(1)) is amended by striking ``In applying'' and inserting the
    following:
            ``Where practicable, the administering authority shall provide
            to the exporters who would have been subject to the agreement
            the reasons for not accepting the agreement and, to the extent
            possible, an opportunity to submit comments thereon. In
            applying''.
        (b) Antidumping Duties.--Section 734(d) (19 U.S.C. 1673c(d)) is
    amended by adding at the end the following flush sentence:
    ``Where practicable, the administering authority shall provide to the
    exporters who would have been subject to the agreement the reasons for
    not accepting the agreement and, to the extent possible, an opportunity
    to submit comments thereon.''.

    SEC. 217. TERMINATION OF INVESTIGATION.

        (a) Countervailing Duty Investigations.--Section 704(a)(1) (19
    U.S.C. 1671c(a)(1)) is amended--
                (1) by striking ``Except'' and inserting ``(A) Withdrawal
            of petition.--Except'';
                (2) by indenting the text so as to align it with
            subparagraph (B) (as added by paragraph (3) of this
            subsection); and
                (3) by adding at the end the following:
                        ``(B) Refiling of petition.--If, within 3 months
                    after the withdrawal of a petition under subparagraph
                    (A), a new petition is filed seeking the imposition of
                    duties on both the subject merchandise of the withdrawn
                    petition and the subject merchandise from another
                    country, the administering authority and the Commission
                    may use in the investigation initiated pursuant to the
                    new petition any records compiled in an investigation
                    conducted pursuant to the withdrawn petition. This
                    subparagraph applies only with respect to the first
                    withdrawal of a petition.''.
        (b) Antidumping Duty Investigations.--Section 734(a)(1) (19 U.S.C.
    1673c(a)(1)) is amended--
                (1) by striking ``Except'' and inserting ``(A) Withdrawal
            of petition.--Except'';
                (2) by indenting the text so as to align it with
            subparagraph (B) (as added by paragraph (3) of this
            subsection); and
                (3) by adding at the end the following:
                        ``(B) Refiling of petition.--If, within 3 months
                    after the withdrawal of a petition under subparagraph
                    (A), a new petition is filed seeking the imposition of
                    duties on both the subject merchandise of the withdrawn
                    petition and the subject merchandise from another
                    country, the administering authority and the Commission
                    may use in the investigation initiated pursuant to the
                    new petition any records compiled in an investigation
                    conducted pursuant to the withdrawn petition. This
                    subparagraph applies only with respect to the first
                    withdrawal of a petition.''.

    SEC. 218. SPECIAL RULES FOR REGIONAL INDUSTRIES.

        (a) Suspension Agreements.--
                (1) Countervailing duty investigations.--Section 704 (19
            U.S.C. 1671c) is amended by adding at the end the following new
            subsection:
        ``(l) Special Rule for Regional Industry Investigations.--
                ``(1) Suspension agreements.--If the Commission makes a
            regional industry determination under section 771(4)(C), the
            administering authority shall offer exporters of the subject
            merchandise who account for substantially all exports of that
            merchandise for sale in the region concerned the opportunity to
            enter into an agreement described in subsection (b) or (c).
                ``(2) Requirements for suspension agreements.--Any
            agreement described in paragraph (1) shall be subject to all
            the requirements imposed under this section for other
            agreements under subsection (b) or (c), except that if the
            Commission makes a regional industry determination described in
            paragraph (1) in the final affirmative determination under
            section 705(b) but not in the preliminary affirmative
            determination under section 703(a), any agreement described in
            paragraph (1) may be accepted within 60 days after the
            countervailing duty order is published under section 706.
                ``(3) Effect of suspension agreement on countervailing duty
            order.--If an agreement described in paragraph (1) is accepted
            after the countervailing duty order is published, the
            administering authority shall rescind the order, refund any
            cash deposit and release any bond or other security deposited
            under section 703(d)(1)(B), and instruct the Customs Service
            that entries of the subject merchandise that were made during
            the period that the order was in effect shall be liquidated
            without regard to countervailing duties.''.
                (2) Antidumping investigations.--Section 734 (19 U.S.C.
            1673c) is amended by adding at the end the following new
            subsection:
        ``(m) Special Rule for Regional Industry Investigations.--
                ``(1) Suspension agreements.--If the Commission makes a
            regional industry determination under section 771(4)(C), the
            administering authority shall offer exporters of the subject
            merchandise who account for substantially all exports of that
            merchandise for sale in the region concerned the opportunity to
            enter into an agreement described in subsection (b), (c), or
            (l).
                ``(2) Requirements for suspension agreements.--Any
            agreement described in paragraph (1) shall be subject to all
            the requirements imposed under this section for other
            agreements under subsection (b), (c), or (l), except that if
            the Commission makes a regional industry determination
            described in paragraph (1) in the final affirmative
            determination under section 735(b) but not in the preliminary
            affirmative determination under section 733(a), any agreement
            described in paragraph (1) may be accepted within 60 days after
            the antidumping order is published under section 736.
                ``(3) Effect of suspension agreement on antidumping duty
            order.--If an agreement described in paragraph (1) is accepted
            after the antidumping duty order is published, the
            administering authority shall rescind the order, refund any
            cash deposit and release any bond or other security deposited
            under section 733(d)(1)(B), and instruct the Customs Service
            that entries of the subject merchandise that were made during
            the period that the order was in effect shall be liquidated
            without regard to antidumping duties.''.
        (b) Applicability of Orders to New Shippers.--
                (1) Countervailing duty cases.--Section 706 (19 U.S.C.
            1671e) is amended by adding at the end the following new
            subsection:
        ``(c) Special Rule for Regional Industries.--
                ``(1) In general.--In an investigation under this subtitle
            in which the Commission makes a regional industry determination
            under section 771(4)(C), the administering authority shall, to
            the maximum extent possible, direct that duties be assessed
            only on the subject merchandise of the specific exporters or
            producers that exported the subject merchandise for sale in the
            region concerned during the period of investigation.
                ``(2) Exception for new exporters and producers.--After
            publication of the countervailing duty order, if the
            administering authority finds that a new exporter or producer
            is exporting the subject merchandise for sale in the region
            concerned, the administering authority shall direct that duties
            be assessed on the subject merchandise of the new exporter or
            producer consistent with the provisions of section
            751(a)(2)(B).''.
                (2) Antidumping duty cases.--Section 736 (19 U.S.C. 1673e)
            is amended by adding at the end the following new subsection:
        ``(d) Special Rule for Regional Industries.--
                ``(1) In general.--In an investigation in which the
            Commission makes a regional industry determination under
            section 771(4)(C), the administering authority shall, to the
            maximum extent possible, direct that duties be assessed only on
            the subject merchandise of the specific exporters or producers
            that exported the subject merchandise for sale in the region
            concerned during the period of investigation.
                ``(2) Exception for new exporters and producers.--After
            publication of the antidumping duty order, if the administering
            authority finds that a new exporter or producer is exporting
            the subject merchandise for sale in the region concerned, the
            administering authority shall direct that duties be assessed on
            the subject merchandise of the new exporter or producer
            consistent with the provisions of section 751(a)(2)(B).''.

    SEC. 219. DETERMINATION OF WEIGHTED AVERAGE DUMPING MARGIN.

        (a) Preliminary Determination.--
                (1) In general.--Section 733(d) (19 U.S.C. 1673b(d)) is
            amended--
                        (A) by striking paragraph (2);
                        (B) by redesignating paragraph (1), as amended by
                    section 215(b)(1)(A), as paragraph (2);
                        (C) by inserting ``and'' at the end of paragraph
                    (2), as so redesignated; and
                        (D) by inserting before such paragraph (2) the
                    following new paragraph:
                ``(1)(A) shall--
                        ``(i) determine an estimated weighted average
                    dumping margin for each exporter and producer
                    individually investigated, and
                        ``(ii) determine, in accordance with section
                    735(c)(5), an estimated all-others rate for all
                    exporters and producers not individually investigated,
                    and
                ``(B) shall order the posting of a cash deposit, bond, or
            other security, as the administering authority deems
            appropriate, for each entry of the subject merchandise in an
            amount based on the estimated weighted average dumping margin
            or the estimated all-others rate, whichever is applicable,''.
                (2) Conforming amendments.--Section 733(b)(1)(A) (19 U.S.C.
            1673b(b)(1)(A)) is amended by striking the last sentence.
        (b) Final Determination.--
                (1) In general.--Section 735(c)(1) (19 U.S.C. 1673d(c)(1))
            is amended--
                        (A) in subparagraph (B)--
                                (i) by redesignating such subparagraph as
                            subparagraph (C); and
                                (ii) by striking ``under paragraphs (1) and
                            (2)'' and all that follows through ``security''
                            and inserting ``the suspension of liquidation
                            under section 733(d)(2)'';
                        (B) by striking ``and'' at the end of subparagraph
                    (A); and
                        (C) by inserting after subparagraph (A) the
                    following new subparagraph:
                        ``(B)(i) the administering authority shall--
                                ``(I) determine the estimated weighted
                            average dumping margin for each exporter and
                            producer individually investigated, and
                                ``(II) determine, in accordance with
                            paragraph (5), the estimated all-others rate
                            for all exporters and producers not
                            individually investigated, and
                        ``(ii) the administering authority shall order the
                    posting of a cash deposit, bond, or other security, as
                    the administering authority deems appropriate, for each
                    entry of the subject merchandise in an amount based on
                    the estimated weighted average dumping margin or the
                    estimated all-others rate, whichever is applicable,
                    and''.
                (2) Method for determining weighted average dumping
            margin.--Section 735(c) (19 U.S.C. 1673d(c)) is amended by
            adding at the end the following new paragraph:
                ``(5) Method for determining estimated all-others rate.--
                        ``(A) General rule.--For purposes of this
                    subsection and section 733(d), the estimated all-others
                    rate shall be an amount equal to the weighted average
                    of the estimated weighted average dumping margins
                    established for exporters and producers individually
                    investigated, excluding any zero and de minimis
                    margins, and any margins determined entirely under
                    section 776.
                        ``(B) Exception.--If the estimated weighted average
                    dumping margins established for all exporters and
                    producers individually investigated are zero or de
                    minimis margins, or are determined entirely under
                    section 776, the administering authority may use any
                    reasonable method to establish the estimated all-others
                    rate for exporters and producers not individually
                    investigated, including averaging the estimated
                    weighted average dumping margins determined for the
                    exporters and producers individually investigated.''.
        (c) Technical and Conforming Amendments.--
                (1) Section 733(e)(2) is amended by striking ``subsection
            (d)(1)'' and inserting ``subsection (d)(2)''.
                (2) Section 734(f)(2)(A) is amended--
                        (A) in clause (i), by striking ``section
                    733(d)(1)'' and inserting ``section 733(d)(2)''; and
                        (B) in clause (iii), by striking ``section
                    733(d)(2)'' and inserting ``section 733(d)(1)(B)''.
                (3) Section 734(f)(2)(B) is amended--
                        (A) by striking ``section 733(d)(1)'' and inserting
                    ``section 733(d)(2)''; and
                        (B) by striking ``section 733(d)(2)'' and inserting
                    ``section 733(d)(1)(B)''.
                (4) Section 734(h)(3) is amended--
                        (A) in subparagraph (A), by striking ``section
                    733(d)(1)'' and inserting ``section 733(d)(2)''; and
                        (B) in subparagraph (B), by striking ``section
                    733(d)(2)'' and inserting ``section 733(d)(1)(B)''.
                (5) Section 734(i)(1)(A) is amended by striking ``section
            733(d)(1)'' and inserting ``section 733(d)(2)''.
                (6) Section 735(c)(2)(A) is amended by striking ``section
            703(d)(1)'' and inserting ``section 733(d)(2)''.
                (7) Section 735(c)(2)(B) is amended by striking ``section
            733(d)(2)'' and inserting ``section 733(d)(1)(B)''.
                (8) Section 735(c)(3)(B) is amended by striking ``section
            733(d)(2)'' and inserting ``section 733(d)(1)(B)''.
                (9) Section 736(b)(1) is amended by striking ``section
            733(d)(1)'' each place it appears and inserting ``section
            733(d)(2)''.
                (10) Section 737(a) is amended by striking ``section
            733(d)(2)'' each place it appears in the heading and in the
            text and inserting ``section 733(d)(1)(B)''.

    SEC. 220. REVIEW OF DETERMINATIONS.

        (a) In General.--Section 751 (19 U.S.C. 1675) is amended to read as
    follows:

    ``SEC. 751. ADMINISTRATIVE REVIEW OF DETERMINATIONS.

        ``(a) Periodic Review of Amount of Duty.--
                ``(1) In general.--At least once during each 12-month
            period beginning on the anniversary of the date of publication
            of a countervailing duty order under this title or under
            section 303 of this Act, an antidumping duty order under this
            title or a finding under the Antidumping Act, 1921, or a notice
            of the suspension of an investigation, the administering
            authority, if a request for such a review has been received and
            after publication of notice of such review in the Federal
            Register, shall--
                        ``(A) review and determine the amount of any net
                    countervailable subsidy,
                        ``(B) review, and determine (in accordance with
                    paragraph (2)), the amount of any antidumping duty, and
                        ``(C) review the current status of, and compliance
                    with, any agreement by reason of which an investigation
                    was suspended, and review the amount of any net
                    countervailable subsidy or dumping margin involved in
                    the agreement,
            and shall publish in the Federal Register the results of such
            review, together with notice of any duty to be assessed,
            estimated duty to be deposited, or investigation to be resumed.
                ``(2) Determination of antidumping duties.--
                        ``(A) In general.--For the purpose of paragraph
                    (1)(B), the administering authority shall determine--
                                ``(i) the normal value and export price (or
                            constructed export price) of each entry of the
                            subject merchandise, and
                                ``(ii) the dumping margin for each such
                            entry.
                        ``(B) Determination of antidumping or
                    countervailing duties for new exporters and
                    producers.--
                                ``(i) In general.--If the administering
                            authority receives a request from an exporter
                            or producer of the subject merchandise
                            establishing that--
                                        ``(I) such exporter or producer did
                                    not export the merchandise that was the
                                    subject of an antidumping duty or
                                    countervailing duty order to the United
                                    States (or, in the case of a regional
                                    industry, did not export the subject
                                    merchandise for sale in the region
                                    concerned) during the period of
                                    investigation, and
                                        ``(II) such exporter or producer is
                                    not affiliated (within the meaning of
                                    section 771(33)) with any exporter or
                                    producer who exported the subject
                                    merchandise to the United States (or in
                                    the case of a regional industry, who
                                    exported the subject merchandise for
                                    sale in the region concerned) during
                                    that period,
                            the administering authority shall conduct a
                            review under this subsection to establish an
                            individual weighted average dumping margin or
                            an individual countervailing duty rate (as the
                            case may be) for such exporter or producer.
                                ``(ii) Time for review under clause (i).--
                            The administering authority shall commence a
                            review under clause (i) in the calendar month
                            beginning after--
                                        ``(I) the end of the 6-month period
                                    beginning on the date of the
                                    countervailing duty or antidumping duty
                                    order under review, or
                                        ``(II) the end of any 6-month
                                    period occurring thereafter,
                            if the request for the review is made during
                            that 6-month period.
                                ``(iii) Posting bond or security.--The
                            administering authority shall, at the time a
                            review under this subparagraph is initiated,
                            direct the Customs Service to allow, at the
                            option of the importer, the posting, until the
                            completion of the review, of a bond or security
                            in lieu of a cash deposit for each entry of the
                            subject merchandise.
                                ``(iv) Time limits.--The administering
                            authority shall make a preliminary
                            determination in a review conducted under this
                            subparagraph within 180 days after the date on
                            which the review is initiated, and a final
                            determination within 90 days after the date the
                            preliminary determination is issued, except
                            that if the administering authority concludes
                            that the case is extraordinarily complicated,
                            it may extend the 180-day period to 300 days
                            and may extend the 90-day period to 150 days.
                        ``(C) Results of determinations.--The determination
                    under this paragraph shall be the basis for the
                    assessment of countervailing or antidumping duties on
                    entries of merchandise covered by the determination and
                    for deposits of estimated duties.
                ``(3) Time limits.--
                        ``(A) Preliminary and final determinations.--The
                    administering authority shall make a preliminary
                    determination under subparagraph (A), (B), or (C) of
                    paragraph (1) within 245 days after the last day of the
                    month in which occurs the anniversary of the date of
                    publication of the order, finding, or suspension
                    agreement for which the review under paragraph (1) is
                    requested, and a final determination under paragraph
                    (1) within 120 days after the date on which the
                    preliminary determination is published. If it is not
                    practicable to complete the review within the foregoing
                    time, the administering authority may extend that 245-
                    day period to 365 days and may extend that 120-day
                    period to 180 days. The administering authority may
                    extend the time for making a final determination
                    without extending the time for making a preliminary
                    determination, if such final determination is made not
                    later than 300 days after the date on which the
                    preliminary determination is published.
                        ``(B) Liquidation of entries.--If the administering
                    authority orders any liquidation of entries pursuant to
                    a review under paragraph (1), such liquidation shall be
                    made promptly and, to the greatest extent practicable,
                    within 90 days after the instructions to Customs are
                    issued. In any case in which liquidation has not
                    occurred within that 90-day period, the Secretary of
                    the Treasury shall, upon the request of the affected
                    party, provide an explanation thereof.
                        ``(C) Effect of pending review under section
                    516a.--In a case in which a final determination under
                    paragraph (1) is under review under section 516A and a
                    liquidation of entries covered by the determination is
                    enjoined under section 516A(c)(2) or suspended under
                    section 516A(g)(5)(C), the administering authority
                    shall, within 10 days after the final disposition of
                    the review under section 516A, transmit to the Federal
                    Register for publication the final disposition and
                    issue instructions to the Customs Service with respect
                    to the liquidation of entries pursuant to the review.
                    In such a case, the 90-day period referred to in
                    subparagraph (B) shall begin on the day on which the
                    administering authority issues such instructions.
                ``(4) Absorption of antidumping duties.--During any review
            under this subsection initiated 2 years or 4 years after the
            publication of an antidumping duty order under section 736(a),
            the administering authority, if requested, shall determine
            whether antidumping duties have been absorbed by a foreign
            producer or exporter subject to the order if the subject
            merchandise is sold in the United States through an importer
            who is affiliated with such foreign producer or exporter. The
            administering authority shall notify the Commission of its
            findings regarding such duty absorption for the Commission to
            consider in conducting a review under subsection (c).
        ``(b) Reviews Based on Changed Circumstances.--
                ``(1) In general.--Whenever the administering authority or
            the Commission receives information concerning, or a request
            from an interested party for a review of--
                        ``(A) a final affirmative determination that
                    resulted in an antidumping duty order under this title
                    or a finding under the Antidumping Act, 1921, or in a
                    countervailing duty order under this title or section
                    303,
                        ``(B) a suspension agreement accepted under section
                    704 or 734, or
                        ``(C) a final affirmative determination resulting
                    from an investigation continued pursuant to section
                    704(g) or 734(g),
            which shows changed circumstances sufficient to warrant a
            review of such determination or agreement, the administering
            authority or the Commission (as the case may be) shall conduct
            a review of the determination or agreement after publishing
            notice of the review in the Federal Register.
                ``(2) Commission review.--In conducting a review under this
            subsection, the Commission shall--
                        ``(A) in the case of a countervailing duty order or
                    antidumping duty order or finding, determine whether
                    revocation of the order or finding is likely to lead to
                    continuation or recurrence of material injury,
                        ``(B) in the case of a determination made pursuant
                    to section 704(h)(2) or 734(h)(2), determine whether
                    the suspension agreement continues to eliminate
                    completely the injurious effects of imports of the
                    subject merchandise, and
                        ``(C) in the case of an affirmative determination
                    resulting from an investigation continued under section
                    704(g) or 734(g), determine whether termination of the
                    suspended investigation is likely to lead to
                    continuation or recurrence of material injury.
                ``(3)  Burden of persuasion.--During a review conducted by
            the Commission under this subsection--
                        ``(A) the party seeking revocation of an order or
                    finding described in paragraph (1)(A) shall have the
                    burden of persuasion with respect to whether there are
                    changed circumstances sufficient to warrant such
                    revocation, and
                        ``(B) the party seeking termination of a suspended
                    investigation or a suspension agreement shall have the
                    burden of persuasion with respect to whether there are
                    changed circumstances sufficient to warrant such
                    termination.
                ``(4) Limitation on period for review.--In the absence of
            good cause shown--
                        ``(A) the Commission may not review a determination
                    made under section 705(b) or 735(b), or an
                    investigation suspended under section 704 or 734, and
                        ``(B) the administering authority may not review a
                    determination made under section 705(a) or 735(a), or
                    an investigation suspended under section 704 or 734,
            less than 24 months after the date of publication of notice of
            that determination or suspension.
        ``(c) Five-Year Review.--
                ``(1) In general.--Notwithstanding subsection (b) and
            except in the case of a transition order defined in paragraph
            (6), 5 years after the date of publication of--
                        ``(A) a countervailing duty order (other than a
                    countervailing duty order to which subparagraph (B)
                    applies or which was issued without an affirmative
                    determination of injury by the Commission under section
                    303), an antidumping duty order, or a notice of
                    suspension of an investigation, described in subsection
                    (a)(1),
                        ``(B) a notice of injury determination under
                    section 753 with respect to a countervailing duty
                    order, or
                        ``(C) a determination under this section to
                    continue an order or suspension agreement,
            the administering authority and the Commission shall conduct a
            review to determine, in accordance with section 752, whether
            revocation of the countervailing or antidumping duty order or
            termination of the investigation suspended under section 704 or
            734 would be likely to lead to continuation or recurrence of
            dumping or a countervailable subsidy (as the case may be) and
            of material injury.
                ``(2) Notice of initiation of review.--Not later than 30
            days before the fifth anniversary of the date described in
            paragraph (1), the administering authority shall publish in the
            Federal Register a notice of initiation of a review under this
            subsection and request that interested parties submit--
                        ``(A) a statement expressing their willingness to
                    participate in the review by providing information
                    requested by the administering authority and the
                    Commission,
                        ``(B) a statement regarding the likely effects of
                    revocation of the order or termination of the suspended
                    investigation, and
                        ``(C) such other information or industry data as
                    the administering authority or the Commission may
                    specify.
                ``(3) Responses to notice of initiation.--
                        ``(A) No response.--If no interested party responds
                    to the notice of initiation under this subsection, the
                    administering authority shall issue a final
                    determination, within 90 days after the initiation of a
                    review, revoking the order or terminating the suspended
                    investigation to which such notice relates. For
                    purposes of this paragraph, an interested party means a
                    party described in section 771(9) (C), (D), (E), (F),
                    or (G).
                        ``(B) Inadequate response.--If interested parties
                    provide inadequate responses to a notice of initiation,
                    the administering authority, within 120 days after the
                    initiation of the review, or the Commission, within 150
                    days after such initiation, may issue, without further
                    investigation, a final determination based on the facts
                    available, in accordance with section 776.
                ``(4) Waiver of participation by certain interested
            parties.--
                        ``(A) In general.--An interested party described in
                    section 771(9) (A) or (B) may elect not to participate
                    in a review conducted by the administering authority
                    under this subsection and to participate only in the
                    review conducted by the Commission under this
                    subsection.
                        ``(B) Effect of waiver.--In a review in which an
                    interested party waives its participation pursuant to
                    this paragraph, the administering authority shall
                    conclude that revocation of the order or termination of
                    the investigation would be likely to lead to
                    continuation or recurrence of dumping or a
                    countervailable subsidy (as the case may be) with
                    respect to that interested party.
                ``(5) Conduct of review.--
                        ``(A) Time limits for completion of review.--Unless
                    the review has been completed pursuant to paragraph (3)
                    or paragraph (4) applies, the administering authority
                    shall make its final determination pursuant to section
                    752 (b) or (c) within 240 days after the date on which
                    a review is initiated under this subsection. If the
                    administering authority makes a final affirmative
                    determination, the Commission shall make its final
                    determination pursuant to section 752(a) within 360
                    days after the date on which a review is initiated
                    under this subsection.
                        ``(B) Extension of time limit.--The administering
                    authority or the Commission (as the case may be) may
                    extend the period of time for making their respective
                    determinations under this subsection by not more than
                    90 days, if the administering authority or the
                    Commission (as the case may be) determines that the
                    review is extraordinarily complicated. In a review in
                    which the administering authority extends the time for
                    making a final determination, but the Commission does
                    not extend the time for making a determination, the
                    Commission's determination shall be made not later than
                    120 days after the date on which the final
                    determination of the administering authority is
                    published.
                        ``(C) Extraordinarily complicated.--For purposes of
                    this subsection, the administering authority or the
                    Commission (as the case may be) may treat a review as
                    extraordinarily complicated if--
                                ``(i) there is a large number of issues,
                                ``(ii) the issues to be considered are
                            complex,
                                ``(iii) there is a large number of firms
                            involved,
                                ``(iv) the orders or suspended
                            investigations have been grouped as described
                            in subparagraph (D), or
                                ``(v) it is a review of a transition order.
                        ``(D) Grouped reviews.--The Commission, in
                    consultation with the administering authority, may
                    group orders or suspended investigations for review if
                    it considers that such grouping is appropriate and will
                    promote administrative efficiency. Where orders or
                    suspended investigations have been grouped, the
                    Commission shall, subject to subparagraph (B), make its
                    final determination under this subsection not later
                    than 120 days after the date that the administering
                    authority publishes notice of its final determination
                    with respect to the last order or agreement in the
                    group.
                ``(6) Special transition rules.--
                        ``(A) Schedule for reviews of transition orders.--
                                ``(i) Initiation.--The administering
                            authority shall begin its review of transition
                            orders in the 42d calendar month after the date
                            such orders are issued. A review of all
                            transition orders shall be initiated not later
                            than the 5th anniversary after the date such
                            orders are issued.
                                ``(ii) Completion.--A review of a
                            transition order shall be completed not later
                            than 18 months after the date such review is
                            initiated. Reviews of all transition orders
                            shall be completed not later than 18 months
                            after the 5th anniversary of the date such
                            orders are issued.
                                ``(iii) Subsequent reviews.--The time
                            limits set forth in clauses (i) and (ii) shall
                            be applied to all subsequent 5-year reviews of
                            transition orders by substituting `date of the
                            determination to continue such orders' for
                            `date such orders are issued'.
                                ``(iv) Revocation and termination.--No
                            transition order may be revoked under this
                            subsection before the date that is 5 years
                            after the date the WTO Agreement enters into
                            force with respect to the United States.
                        ``(B) Sequence of transition reviews.--The
                    administering authority, in consultation with the
                    Commission, shall determine such sequence of review of
                    transition orders as it deems appropriate to promote
                    administrative efficiency. To the extent practicable,
                    older orders shall be reviewed first.
                        ``(C) Definition of transition order.--For purposes
                    of this section, the term `transition order' means--
                                ``(i) a countervailing duty order under
                            this title or under section 303,
                                ``(ii) an antidumping duty order under this
                            title or a finding under the Antidumping Act,
                            1921, or
                                ``(iii) a suspension of an investigation
                            under section 704 or 734,
                    which is in effect on the date the WTO Agreement enters
                    into force with respect to the United States.
                        ``(D) Issue date for transition orders.--For
                    purposes of this subsection, a transition order shall
                    be treated as issued on the date the WTO Agreement
                    enters into force with respect to the United States, if
                    such order is based on an investigation conducted by
                    both the administering authority and the Commission.
        ``(d) Revocation of Order or Finding; Termination of Suspended
    Investigation.--
                ``(1) In general.--The administering authority may revoke,
            in whole or in part, a countervailing duty order or an
            antidumping duty order or finding, or terminate a suspended
            investigation, after review under subsection (a) or (b). The
            administering authority shall not revoke, in whole or in part,
            a countervailing duty order or terminate a suspended
            investigation on the basis of any export taxes, duties, or
            other charges levied on the export of the subject merchandise
            to the United States which are specifically intended to offset
            the countervailable subsidy received.
                ``(2) Five-year reviews.--In the case of a review conducted
            under subsection (c), the administering authority shall revoke
            a countervailing duty order or an antidumping duty order or
            finding, or terminate a suspended investigation, unless--
                        ``(A) the administering authority makes a
                    determination that dumping or a countervailable
                    subsidy, as the case may be, would be likely to
                    continue or recur, and
                        ``(B) the Commission makes a determination that
                    material injury would be likely to continue or recur as
                    described in section 752(a).
                ``(3) Application of revocation or termination.--A
            determination under this section to revoke an order or finding
            or terminate a suspended investigation shall apply with respect
            to unliquidated entries of the subject merchandise which are
            entered, or withdrawn from warehouse, for consumption on or
            after the date determined by the administering authority.
        ``(e) Hearings.--Whenever the administering authority or the
    Commission conducts a review under this section, it shall, upon the
    request of an interested party, hold a hearing in accordance with
    section 774(b) in connection with that review.
        ``(f) Determination That Basis for Suspension No Longer Exists.--If
    the determination of the Commission under subsection (b)(2)(B) is
    negative, the suspension agreement shall be treated as not accepted,
    beginning on the date of publication of the Commission's determination,
    and the administering authority and the Commission shall proceed, under
    section 704(i) or 734(i), as if the suspension agreement had been
    violated on that date, except that no duty under any order subsequently
    issued shall be assessed on merchandise entered, or withdrawn from
    warehouse, for consumption before that date.
        ``(g) Correction of Ministerial Errors.--The administering
    authority shall establish procedures for the correction of ministerial
    errors in final determinations within a reasonable time after the
    determinations are issued under this section. Such procedures shall
    ensure opportunity for interested parties to present their views
    regarding any such errors. As used in this subsection, the term
    `ministerial error' includes errors in addition, subtraction, or other
    arithmetic function, clerical errors resulting from inaccurate copying,
    duplication, or the like, and any other type of unintentional error
    which the administering authority considers ministerial.''.
        (b) Review of Determinations.--
                (1) In general.--Section 516A(a)(1) (19 U.S.C. 1516A(a)(1))
            is amended by striking ``or'' at the end of subparagraph (B),
            by inserting ``or'' at the end of subparagraph (C), and by
            inserting immediately after subparagraph (C) the following new
            subparagraph:
                        ``(D) a final determination by the administering
                    authority or the Commission under section 751(c)(3),''.
                (2) Technical amendments.--Section 516A(b)(1) (19 U.S.C.
            1516a(b)(1)) is amended--
                        (A) in subparagraph (A), by striking ``under
                    paragraph (1) of subsection (a)'' and inserting ``under
                    subparagraph (A), (B), or (C) of subsection (a)(1)'',
                    and
                        (B) in subparagraph (B)--
                                (i) by striking ``(B) in an action'' and
                            inserting ``(B)(i) in an action'',
                                (ii) by striking the end period and
                            inserting ``, or'', and
                                (iii) by adding at the end the following:
                                ``(ii) in an action brought under paragraph
                            (1)(D) of subsection (a), to be arbitrary,
                            capricious, an abuse of discretion, or
                            otherwise not in accordance with law.''.
        (c) Conforming Amendment.--Section 504 (19 U.S.C. 1504) is
    amended--
                (1) in subsection (a), by inserting ``except as provided in
            section 751(a)(3),'' before ``an entry of merchandise not
            liquidated'', and
                (2) in subsection (d), by striking ``When a suspension''
            and inserting ``Except as provided in section 751(a)(3), when a
            suspension''.

    SEC. 221. REVIEW DETERMINATIONS.

        (a) In General.--Chapter 1 of subtitle C of title VII (19 U.S.C.
    1675) is amended by adding at the end the following new section:

    ``SEC. 752. SPECIAL RULES FOR SECTION 751(b) AND 751(c) REVIEWS.

        ``(a) Determination of Likelihood of Continuation or Recurrence of
    Material Injury.--
                ``(1) In general.--In a review conducted under section 751
            (b) or (c), the Commission shall determine whether revocation
            of an order, or termination of a suspended investigation, would
            be likely to lead to continuation or recurrence of material
            injury within a reasonably foreseeable time. The Commission
            shall consider the likely volume, price effect, and impact of
            imports of the subject merchandise on the industry if the order
            is revoked or the suspended investigation is terminated. The
            Commission shall take into account--
                        ``(A) its prior injury determinations, including
                    the volume, price effect, and impact of imports of the
                    subject merchandise on the industry before the order
                    was issued or the suspension agreement was accepted,
                        ``(B) whether any improvement in the state of the
                    industry is related to the order or the suspension
                    agreement,
                        ``(C) whether the industry is vulnerable to
                    material injury if the order is revoked or the
                    suspension agreement is terminated, and
                        ``(D) in an antidumping proceeding under section
                    751(c), the findings of the administering authority
                    regarding duty absorption under section 751(a)(4).
                ``(2) Volume.--In evaluating the likely volume of imports
            of the subject merchandise if the order is revoked or the
            suspended investigation is terminated, the Commission shall
            consider whether the likely volume of imports of the subject
            merchandise would be significant if the order is revoked or the
            suspended investigation is terminated, either in absolute terms
            or relative to production or consumption in the United States.
            In so doing, the Commission shall consider all relevant
            economic factors, including--
                        ``(A) any likely increase in production capacity or
                    existing unused production capacity in the exporting
                    country,
                        ``(B) existing inventories of the subject
                    merchandise, or likely increases in inventories,
                        ``(C) the existence of barriers to the importation
                    of such merchandise into countries other than the
                    United States, and
                        ``(D) the potential for product-shifting if
                    production facilities in the foreign country, which can
                    be used to produce the subject merchandise, are
                    currently being used to produce other products.
                ``(3) Price.--In evaluating the likely price effects of
            imports of the subject merchandise if the order is revoked or
            the suspended investigation is terminated, the Commission shall
            consider whether--
                        ``(A) there is likely to be significant price
                    underselling by imports of the subject merchandise as
                    compared to domestic like products, and
                        ``(B) imports of the subject merchandise are likely
                    to enter the United States at prices that otherwise
                    would have a significant depressing or suppressing
                    effect on the price of domestic like products.
                ``(4) Impact on the industry.--In evaluating the likely
            impact of imports of the subject merchandise on the industry if
            the order is revoked or the suspended investigation is
            terminated, the Commission shall consider all relevant economic
            factors which are likely to have a bearing on the state of the
            industry in the United States, including, but not limited to--
                        ``(A) likely declines in output, sales, market
                    share, profits, productivity, return on investments,
                    and utilization of capacity,
                        ``(B) likely negative effects on cash flow,
                    inventories, employment, wages, growth, ability to
                    raise capital, and investment, and
                        ``(C) likely negative effects on the existing
                    development and production efforts of the industry,
                    including efforts to develop a derivative or more
                    advanced version of the domestic like product.
            The Commission shall evaluate all relevant economic factors
            described in this paragraph within the context of the business
            cycle and the conditions of competition that are distinctive to
            the affected industry.
                ``(5) Basis for determination.--The presence or absence of
            any factor which the Commission is required to consider under
            this subsection shall not necessarily give decisive guidance
            with respect to the Commission's determination of whether
            material injury is likely to continue or recur within a
            reasonably foreseeable time if the order is revoked or the
            suspended investigation is terminated. In making that
            determination, the Commission shall consider that the effects
            of revocation or termination may not be imminent, but may
            manifest themselves only over a longer period of time.
                ``(6) Magnitude of margin of dumping and net
            countervailable subsidy; nature of countervailable subsidy.--In
            making a determination under section 751 (b) or (c), the
            Commission may consider the magnitude of the margin of dumping
            or the magnitude of the net countervailable subsidy. If a
            countervailable subsidy is involved the Commission shall
            consider information regarding the nature of the
            countervailable subsidy and whether the subsidy is a subsidy
            described in Article 3 or 6.1 of the Subsidies Agreement.
                ``(7) Cumulation.--For purposes of this subsection, the
            Commission may cumulatively assess the volume and effect of
            imports of the subject merchandise from all countries with
            respect to which reviews under section 751 (b) or (c) were
            initiated on the same day, if such imports would be likely to
            compete with each other and with domestic like products in the
            United States market. The Commission shall not cumulatively
            assess the volume and effects of imports of the subject
            merchandise in a case in which it determines that such imports
            are likely to have no discernible adverse impact on the
            domestic industry.
                ``(8) Special rule for regional industries.--In a review
            under section 751 (b) or (c) involving a regional industry, the
            Commission may base its determination on the regional industry
            defined in the original investigation under this title, another
            region that satisfies the criteria established in section
            771(4)(C), or the United States as a whole. In determining if a
            regional industry analysis is appropriate for the determination
            in the review, the Commission shall consider whether the
            criteria established in section 771(4)(C) are likely to be
            satisfied if the order is revoked or the suspended
            investigation is terminated.
        ``(b) Determination of Likelihood of Continuation or Recurrence of
    a Countervailable Subsidy.--
                ``(1) In general.--In a review conducted under section
            751(c), the administering authority shall determine whether
            revocation of a countervailing duty order or termination of a
            suspended investigation under section 704 would be likely to
            lead to continuation or recurrence of a countervailable
            subsidy. The administering authority shall consider--
                        ``(A) the net countervailable subsidy determined in
                    the investigation and subsequent reviews, and
                        ``(B) whether any change in the program which gave
                    rise to the net countervailable subsidy described in
                    subparagraph (A) has occurred that is likely to affect
                    that net countervailable subsidy.
                ``(2) Consideration of other factors.--If good cause is
            shown, the administering authority shall also consider--
                        ``(A) programs determined to provide
                    countervailable subsidies in other investigations or
                    reviews under this title, but only to the extent that
                    such programs--
                                ``(i) can potentially be used by the
                            exporters or producers subject to the review
                            under section 751(c), and
                                ``(ii) did not exist at the time that the
                            countervailing duty order was issued or the
                            suspension agreement was accepted, and
                        ``(B) programs newly alleged to provide
                    countervailable subsidies but only to the extent that
                    the administering authority makes an affirmative
                    countervailing duty determination with respect to such
                    programs and with respect to the exporters or producers
                    subject to the review.
                ``(3) Net countervailable subsidy.--The administering
            authority shall provide to the Commission the net
            countervailable subsidy that is likely to prevail if the order
            is revoked or the suspended investigation is terminated. The
            administering authority shall normally choose a net
            countervailable subsidy that was determined under section 705
            or subsection (a) or (b)(1) of section 751.
                ``(4) Special rule.--
                        ``(A) Treatment of zero and de minimis rates.--A
                    net countervailable subsidy described in paragraph
                    (1)(A) that is zero or de minimis shall not by itself
                    require the administering authority to determine that
                    revocation of a countervailing duty order or
                    termination of a suspended investigation would not be
                    likely to lead to continuation or recurrence of a
                    countervailable subsidy.
                        ``(B) Application of de minimis standards.--For
                    purposes of this paragraph, the administering authority
                    shall apply the de minimis standards applicable to
                    reviews conducted under subsections (a) and (b)(1) of
                    section 751.
        ``(c) Determination of Likelihood of Continuation or Recurrence of
    Dumping.--
                ``(1) In general.--In a review conducted under section
            751(c), the administering authority shall determine whether
            revocation of an antidumping duty order or termination of a
            suspended investigation under section 734 would be likely to
            lead to continuation or recurrence of sales of the subject
            merchandise at less than fair value. The administering
            authority shall consider--
                        ``(A) the weighted average dumping margins
                    determined in the investigation and subsequent reviews,
                    and
                        ``(B) the volume of imports of the subject
                    merchandise for the period before and the period after
                    the issuance of the antidumping duty order or
                    acceptance of the suspension agreement.
                ``(2) Consideration of other factors.--If good cause is
            shown, the administering authority shall also consider such
            other price, cost, market, or economic factors as it deems
            relevant.
                ``(3) Magnitude of the margin of dumping.--The
            administering authority shall provide to the Commission the
            magnitude of the margin of dumping that is likely to prevail if
            the order is revoked or the suspended investigation is
            terminated. The administering authority shall normally choose a
            margin that was determined under section 735 or under
            subsection (a) or (b)(1) of section 751.
                ``(4) Special rule.--
                        ``(A) Treatment of zero or de minimis margins.--A
                    dumping margin described in paragraph (1)(A) that is
                    zero or de minimis shall not by itself require the
                    administering authority to determine that revocation of
                    an antidumping duty order or termination of a suspended
                    investigation would not be likely to lead to
                    continuation or recurrence of sales at less than fair
                    value.
                        ``(B) Application of de minimis standards.--For
                    purposes of this paragraph, the administering authority
                    shall apply the de minimis standards applicable to
                    reviews conducted under subsections (a) and (b) of
                    section 751.''.
        (b) Affirmative Determinations by Divided Commission.--Section
    771(11) (19 U.S.C. 1677(11)) is amended by inserting ``, including a
    determination under section 751,'' after ``determination by the
    Commission''.
        (c) Conforming Amendment.--The table of contents for title VII is
    amended by inserting after the item relating to section 751 the
    following:

    ``Sec. 752. Special rules for section 751(b) and 751(c) reviews.''.

    SEC. 222. DEFINITIONS.

        (a) Industry.--
                (1) In general.--Subparagraphs (A) and (B) of section
            771(4) (19 U.S.C. 1677(4) (A) and (B)) are amended to read as
            follows:
                        ``(A) In general.--The term `industry' means the
                    producers as a whole of a domestic like product, or
                    those producers whose collective output of a domestic
                    like product constitutes a major proportion of the
                    total domestic production of the product.
                        ``(B) Related parties.--
                                ``(i) If a producer of a domestic like
                            product and an exporter or importer of the
                            subject merchandise are related parties, or if
                            a producer of the domestic like product is also
                            an importer of the subject merchandise, the
                            producer may, in appropriate circumstances, be
                            excluded from the industry.
                                ``(ii) For purposes of clause (i), a
                            producer and an exporter or importer shall be
                            considered to be related parties, if--
                                        ``(I) the producer directly or
                                    indirectly controls the exporter or
                                    importer,
                                        ``(II) the exporter or importer
                                    directly or indirectly controls the
                                    producer,
                                        ``(III) a third party directly or
                                    indirectly controls the producer and
                                    the exporter or importer, or
                                        ``(IV) the producer and the
                                    exporter or importer directly or
                                    indirectly control a third party and
                                    there is reason to believe that the
                                    relationship causes the producer to act
                                    differently than a nonrelated producer.
                            For purposes of this subparagraph, a party
                            shall be considered to directly or indirectly
                            control another party if the party is legally
                            or operationally in a position to exercise
                            restraint or direction over the other party.''.
                (2) Regional industry.--Section 771(4)(C) (19 U.S.C.
            1677(4)(C)) is amended by adding at the end the following new
            sentence: ``The term `regional industry' means the domestic
            producers within a region who are treated as a separate
            industry under this subparagraph.''.
        (b) Impact on Affected Domestic Industry.--
                (1) In general.--Section 771(7)(C)(iii) (19 U.S.C.
            1677(7)(C)(iii)) is amended--
                        (A) by striking ``and'' at the end of subclause
                    (III), and
                        (B) by striking the period at the end of subclause
                    (IV) and inserting ``, and
                                        ``(V) in a proceeding under
                                    subtitle B, the magnitude of the margin
                                    of dumping.''.
                (2) Captive production.--Section 771(7)(C) (19 U.S.C.
            1677(7)(C)) is amended by striking clause (iv) and inserting
            the following:
                                ``(iv) Captive production.--If domestic
                            producers internally transfer significant
                            production of the domestic like product for the
                            production of a downstream article and sell
                            significant production of the domestic like
                            product in the merchant market, and the
                            Commission finds that--
                                        ``(I) the domestic like product
                                    produced that is internally transferred
                                    for processing into that downstream
                                    article does not enter the merchant
                                    market for the domestic like product,
                                        ``(II) the domestic like product is
                                    the predominant material input in the
                                    production of that downstream article,
                                    and
                                        ``(III) the production of the
                                    domestic like product sold in the
                                    merchant market is not generally used
                                    in the production of that downstream
                                    article,
                            then the Commission, in determining market
                            share and the factors affecting financial
                            performance set forth in clause (iii), shall
                            focus primarily on the merchant market for the
                            domestic like product.''.
                (3) Technical correction.--Section 771(7)(C)(iii) is
            amended by striking ``subparagraph (B)(iii)'' and inserting
            ``subparagraph (B)(i)(III)''.
        (c) Determination of Threat of Injury.--Clauses (i) and (ii) of
    section 771(7)(F) (19 U.S.C. 1677(7)(F) (i) and (ii)) are amended to
    read as follows:
                                ``(i) In general.--In determining whether
                            an industry in the United States is threatened
                            with material injury by reason of imports (or
                            sales for importation) of the subject
                            merchandise, the Commission shall consider,
                            among other relevant economic factors--
                                        ``(I) if a countervailable subsidy
                                    is involved, such information as may be
                                    presented to it by the administering
                                    authority as to the nature of the
                                    subsidy (particularly as to whether the
                                    countervailable subsidy is a subsidy
                                    described in Article 3 or 6.1 of the
                                    Subsidies Agreement), and whether
                                    imports of the subject merchandise are
                                    likely to increase,
                                        ``(II) any existing unused
                                    production capacity or imminent,
                                    substantial increase in production
                                    capacity in the exporting country
                                    indicating the likelihood of
                                    substantially increased imports of the
                                    subject merchandise into the United
                                    States, taking into account the
                                    availability of other export markets to
                                    absorb any additional exports,
                                        ``(III) a significant rate of
                                    increase of the volume or market
                                    penetration of imports of the subject
                                    merchandise indicating the likelihood
                                    of substantially increased imports,
                                        ``(IV) whether imports of the
                                    subject merchandise are entering at
                                    prices that are likely to have a
                                    significant depressing or suppressing
                                    effect on domestic prices, and are
                                    likely to increase demand for further
                                    imports,
                                        ``(V) inventories of the subject
                                    merchandise,
                                        ``(VI) the potential for product-
                                    shifting if production facilities in
                                    the foreign country, which can be used
                                    to produce the subject merchandise, are
                                    currently being used to produce other
                                    products,
                                        ``(VII) in any investigation under
                                    this title which involves imports of
                                    both a raw agricultural product (within
                                    the meaning of paragraph (4)(E)(iv))
                                    and any product processed from such raw
                                    agricultural product, the likelihood
                                    that there will be increased imports,
                                    by reason of product shifting, if there
                                    is an affirmative determination by the
                                    Commission under section 705(b)(1) or
                                    735(b)(1) with respect to either the
                                    raw agricultural product or the
                                    processed agricultural product (but not
                                    both),
                                        ``(VIII) the actual and potential
                                    negative effects on the existing
                                    development and production efforts of
                                    the domestic industry, including
                                    efforts to develop a derivative or more
                                    advanced version of the domestic like
                                    product, and
                                        ``(IX) any other demonstrable
                                    adverse trends that indicate the
                                    probability that there is likely to be
                                    material injury by reason of imports
                                    (or sale for importation) of the
                                    subject merchandise (whether or not it
                                    is actually being imported at the
                                    time).
                                ``(ii) Basis for determination.--The
                            Commission shall consider the factors set forth
                            in clause (i) as a whole in making a
                            determination of whether further dumped or
                            subsidized imports are imminent and whether
                            material injury by reason of imports would
                            occur unless an order is issued or a suspension
                            agreement is accepted under this title. The
                            presence or absence of any factor which the
                            Commission is required to consider under clause
                            (i) shall not necessarily give decisive
                            guidance with respect to the determination.
                            Such a determination may not be made on the
                            basis of mere conjecture or supposition.''.
        (d) Negligible Imports.--Section 771 (19 U.S.C. 1677) is amended--
                (1) in paragraph (7) by striking clause (v) of subparagraph
            (C), and
                (2) by adding at the end the following:
                ``(24) Negligible imports.--
                        ``(A) In general.--
                                ``(i) Less than 3 percent.--Except as
                            provided in clauses (ii) and (iv), imports from
                            a country of merchandise corresponding to a
                            domestic like product identified by the
                            Commission are `negligible' if such imports
                            account for less than 3 percent of the volume
                            of all such merchandise imported into the
                            United States in the most recent 12-month
                            period for which data are available that
                            precedes--
                                        ``(I) the filing of the petition
                                    under section 702(b) or 732(b), or
                                        ``(II) the initiation of the
                                    investigation, if the investigation was
                                    initiated under section 702(a) or
                                    732(a).
                                ``(ii) Exception.--Imports that would
                            otherwise be negligible under clause (i) shall
                            not be negligible if the aggregate volume of
                            imports of the merchandise from all countries
                            described in clause (i) with respect to which
                            investigations were initiated on the same day
                            exceeds 7 percent of the volume of all such
                            merchandise imported into the United States
                            during the applicable 12-month period.
                                ``(iii) Determination of aggregate
                            volume.--In determining aggregate volume under
                            clause (ii) or (iv), the Commission shall not
                            consider imports from any country specified in
                            paragraph (7)(G)(ii).
                                ``(iv) Negligibility in threat analysis.--
                            Notwithstanding clauses (i) and (ii), the
                            Commission shall not treat imports as
                            negligible if it determines that there is a
                            potential that imports from a country described
                            in clause (i) will imminently account for more
                            than 3 percent of the volume of all such
                            merchandise imported into the United States, or
                            that the aggregate volumes of imports from all
                            countries described in clause (ii) will
                            imminently exceed 7 percent of the volume of
                            all such merchandise imported into the United
                            States. The Commission shall consider such
                            imports only for purposes of determining threat
                            of material injury.
                        ``(B) Negligibility for certain countries in
                    countervailing duty investigations.--In the case of an
                    investigation under section 701, subparagraph (A) shall
                    be applied to imports of subject merchandise from
                    developing countries by substituting `4 percent' for `3
                    percent' in subparagraph (A)(i) and by substituting `9
                    percent' for `7 percent' in subparagraph (A)(ii).
                        ``(C) Computation of import volumes.--In computing
                    import volumes for purposes of subparagraphs (A) and
                    (B), the Commission may make reasonable estimates on
                    the basis of available statistics.
                        ``(D) Regional industries.--In an investigation in
                    which the Commission makes a regional industry
                    determination under paragraph (4)(C), the Commission's
                    examination under subparagraphs (A) and (B) shall be
                    based upon the volume of subject merchandise exported
                    for sale in the regional market in lieu of the volume
                    of all subject merchandise imported into the United
                    States.''.
        (e) Cumulation.--Section 771(7) (19 U.S.C. 1677(7)) is amended--
                (1) in subparagraph (F) by striking clause (iv), and
                (2) by adding at the end the following:
                        ``(G) Cumulation for determining material injury.--
                                ``(i) In general.--For purposes of clauses
                            (i) and (ii) of subparagraph (C), and subject
                            to clause (ii), the Commission shall
                            cumulatively assess the volume and effect of
                            imports of the subject merchandise from all
                            countries with respect to which--
                                        ``(I) petitions were filed under
                                    section 702(b) or 732(b) on the same
                                    day,
                                        ``(II) investigations were
                                    initiated under section 702(a) or
                                    732(a) on the same day, or
                                        ``(III) petitions were filed under
                                    section 702(b) or 732(b) and
                                    investigations were initiated under
                                    section 702(a) or 732(a) on the same
                                    day,
                            if such imports compete with each other and
                            with domestic like products in the United
                            States market.
                                ``(ii) Exceptions.--The Commission shall
                            not cumulatively assess the volume and effect
                            of imports under clause (i)--
                                        ``(I) with respect to which the
                                    administering authority has made a
                                    preliminary negative determination,
                                    unless the administering authority
                                    subsequently made a final affirmative
                                    determination with respect to those
                                    imports before the Commission's final
                                    determination is made;
                                        ``(II) from any country with
                                    respect to which the investigation has
                                    been terminated;
                                        ``(III) from any country designated
                                    as a beneficiary country under the
                                    Caribbean Basin Economic Recovery Act
                                    (19 U.S.C. 2701 et seq.) for purposes
                                    of making a determination with respect
                                    to that country, except that the volume
                                    and effect of imports of the subject
                                    merchandise from such country may be
                                    cumulatively assessed with imports of
                                    the subject merchandise from any other
                                    country designated as such a
                                    beneficiary country to the extent
                                    permitted by clause (i); or
                                        ``(IV) from any country that is a
                                    party to an agreement with the United
                                    States establishing a free trade area,
                                    which entered into force and effect
                                    before January 1, 1987, unless the
                                    Commission determines that a domestic
                                    industry is materially injured or
                                    threatened with material injury by
                                    reason of imports from that country.
                                ``(iii) Records in final investigations.--
                            In each final determination in which it
                            cumulatively assesses the volume and effect of
                            imports under clause (i), the Commission shall
                            make its determinations based on the record
                            compiled in the first investigation in which it
                            makes a final determination, except that when
                            the administering authority issues its final
                            determination in a subsequently completed
                            investigation, the Commission shall permit the
                            parties in the subsequent investigation to
                            submit comments concerning the significance of
                            the administering authority's final
                            determination, and shall include such comments
                            and the administering authority's final
                            determination in the record for the subsequent
                            investigation.
                                ``(iv) Regional industry determinations.--
                            In an investigation which involves a regional
                            industry, and in which the Commission decides
                            that the volume and effect of imports should be
                            cumulatively assessed under this subparagraph,
                            such assessment shall be based upon the volume
                            and effect of imports into the region or
                            regions determined by the Commission. The
                            provisions of clause (iii) shall apply to such
                            investigations.
                        ``(H) Cumulation for determining threat of material
                    injury.--To the extent practicable and subject to
                    subparagraph (G)(ii), for purposes of clause (i)(III)
                    and (IV) of subparagraph (F), the Commission may
                    cumulatively assess the volume and price effects of
                    imports of the subject merchandise from all countries
                    with respect to which--
                                ``(i) petitions were filed under section
                            702(b) or 732(b) on the same day,
                                ``(ii) investigations were initiated under
                            section 702(a) or 732(a) on the same day, or
                                ``(iii) petitions were filed under section
                            702(b) or 732(b) and investigations were
                            initiated under section 702(a) or 732(a) on the
                            same day,
                    if such imports compete with each other and with
                    domestic like products in the United States market.''.
        (f) Consideration of Post-Petition Information.--Section 771(7) (19
    U.S.C. 1677(7)), is amended by adding at the end the following:
                        ``(I) Consideration of post-petition information.--
                    The Commission shall consider whether any change in the
                    volume, price effects, or impact of imports of the
                    subject merchandise since the filing of the petition in
                    an investigation under subtitle A or B is related to
                    the pendency of the investigation and, if so, the
                    Commission may reduce the weight accorded to the data
                    for the period after the filing of the petition in
                    making its determination of material injury, threat of
                    material injury, or material retardation of the
                    establishment of an industry in the United States.''.
        (g) Interested Party.--Section 771(9) (19 U.S.C. 1677(9)) is
    amended--
                (1) in subparagraph (A), by inserting ``producers,
            exporters, or'' before ``importers'', and
                (2) in subparagraph (B), inserting ``or from which such
            merchandise is exported'' after ``manufactured''.
        (h) Ordinary Course of Trade.--Section 771(15) (19 U.S.C. 1677(15))
    is amended--
                (1) by striking ``merchandise which is the subject of an
            investigation'' and inserting ``subject merchandise''; and
                (2) by adding at the end the following: ``The administering
            authority shall consider the following sales and transactions,
            among others, to be outside the ordinary course of trade:
                        ``(A) Sales disregarded under section 773(b)(1).
                        ``(B) Transactions disregarded under section
                    773(f)(2).''.
        (i) Other Definitions.--
                (1) In general.--Section 771 (19 U.S.C. 1677), as amended
            by subsection (d), is amended by adding at the end the
            following:
                ``(25) Subject merchandise.--The term `subject merchandise'
            means the class or kind of merchandise that is within the scope
            of an investigation, a review, a suspension agreement, an order
            under this title or section 303, or a finding under the
            Antidumping Act, 1921.
                ``(26) Section 303.--The terms `section 303' and `303' mean
            section 303 of this Act as in effect on the day before the
            effective date of title II of the Uruguay Round Agreements Act.
                ``(27) Suspension agreement.--The term `suspension
            agreement' means an agreement described in section 704(b),
            704(c), 734(b), 734(c), or 734(l).
                ``(28) Exporter or producer.--The term `exporter or
            producer' means the exporter of the subject merchandise, the
            producer of the subject merchandise, or both where appropriate.
            For purposes of section 773, the term `exporter or producer'
            includes both the exporter of the subject merchandise and the
            producer of the same subject merchandise to the extent
            necessary to accurately calculate the total amount incurred and
            realized for costs, expenses, and profits in connection with
            production and sale of that merchandise.
                ``(29) WTO agreement.--The term `WTO Agreement' means the
            Agreement defined in section 2(9) of the Uruguay Round
            Agreements Act.
                ``(30) WTO member and wto member country.--The terms `WTO
            member' and `WTO member country' mean a state, or separate
            customs territory (within the meaning of Article XII of the WTO
            Agreement), with respect to which the United States applies the
            WTO agreement.
                ``(31) GATT 1994.--The term `GATT 1994' means the General
            Agreement on Tariffs and Trade annexed to the WTO Agreement.
                ``(32) Trade representative.--The term `Trade
            Representative' means the United States Trade Representative.
                ``(33) Affiliated persons.--The following persons shall be
            considered to be `affiliated' or `affiliated persons':
                        ``(A) Members of a family, including brothers and
                    sisters (whether by the whole or half blood), spouse,
                    ancestors, and lineal descendants.
                        ``(B) Any officer or director of an organization
                    and such organization.
                        ``(C) Partners.
                        ``(D) Employer and employee.
                        ``(E) Any person directly or indirectly owning,
                    controlling, or holding with power to vote, 5 percent
                    or more of the outstanding voting stock or shares of
                    any organization and such organization.
                        ``(F) Two or more persons directly or indirectly
                    controlling, controlled by, or under common control
                    with, any person.
                        ``(G) Any person who controls any other person and
                    such other person.
            For purposes of this paragraph, a person shall be considered to
            control another person if the person is legally or
            operationally in a position to exercise restraint or direction
            over the other person.
                ``(34) Dumped; dumping.--The terms `dumped' and `dumping'
            refer to the sale or likely sale of goods at less than fair
            value.''.
                (2) Exporter.--Paragraph (13) of section 771 (19 U.S.C.
            1677(13)) is repealed.

    SEC. 223. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE.

        Section 772 (19 U.S.C. 1677a) is amended to read as follows:

    ``SEC. 772. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE.

        ``(a) Export Price.--The term `export price' means the price at
    which the subject merchandise is first sold (or agreed to be sold)
    before the date of importation by the producer or exporter of the
    subject merchandise outside of the United States to an unaffiliated
    purchaser in the United States or to an unaffiliated purchaser for
    exportation to the United States, as adjusted under subsection (c).
        ``(b) Constructed Export Price.--The term `constructed export
    price' means the price at which the subject merchandise is first sold
    (or agreed to be sold) in the United States before or after the date of
    importation by or for the account of the producer or exporter of such
    merchandise or by a seller affiliated with the producer or exporter, to
    a purchaser not affiliated with the producer or exporter, as adjusted
    under subsections (c) and (d).
        ``(c) Adjustments for Export Price and Constructed Export Price.--
    The price used to establish export price and constructed export price
    shall be--
                ``(1) increased by--
                        ``(A) when not included in such price, the cost of
                    all containers and coverings and all other costs,
                    charges, and expenses incident to placing the subject
                    merchandise in condition packed ready for shipment to
                    the United States,
                        ``(B) the amount of any import duties imposed by
                    the country of exportation which have been rebated, or
                    which have not been collected, by reason of the
                    exportation of the subject merchandise to the United
                    States, and
                        ``(C) the amount of any countervailing duty imposed
                    on the subject merchandise under subtitle A to offset
                    an export subsidy, and
                ``(2) reduced by--
                        ``(A) except as provided in paragraph (1)(C), the
                    amount, if any, included in such price, attributable to
                    any additional costs, charges, or expenses, and United
                    States import duties, which are incident to bringing
                    the subject merchandise from the original place of
                    shipment in the exporting country to the place of
                    delivery in the United States, and
                        ``(B) the amount, if included in such price, of any
                    export tax, duty, or other charge imposed by the
                    exporting country on the exportation of the subject
                    merchandise to the United States, other than an export
                    tax, duty, or other charge described in section
                    771(6)(C).
        ``(d) Additional Adjustments to Constructed Export Price.--For
    purposes of this section, the price used to establish constructed
    export price shall also be reduced by--
                ``(1) the amount of any of the following expenses generally
            incurred by or for the account of the producer or exporter, or
            the affiliated seller in the United States, in selling the
            subject merchandise (or subject merchandise to which value has
            been added)--
                        ``(A) commissions for selling the subject
                    merchandise in the United States;
                        ``(B) expenses that result from, and bear a direct
                    relationship to, the sale, such as credit expenses,
                    guarantees and warranties;
                        ``(C) any selling expenses that the seller pays on
                    behalf of the purchaser; and
                        ``(D) any selling expenses not deducted under
                    subparagraph (A), (B), or (C);
                ``(2) the cost of any further manufacture or assembly
            (including additional material and labor), except in
            circumstances described in subsection (e); and
                ``(3) the profit allocated to the expenses described in
            paragraphs (1) and (2).
        ``(e) Special Rule for Merchandise With Value Added After
    Importation.--Where the subject merchandise is imported by a person
    affiliated with the exporter or producer, and the value added in the
    United States by the affiliated person is likely to exceed
    substantially the value of the subject merchandise, the administering
    authority shall determine the constructed export price for such
    merchandise by using one of the following prices if there is a
    sufficient quantity of sales to provide a reasonable basis for
    comparison and the administering authority determines that the use of
    such sales is appropriate:
                ``(1) The price of identical subject merchandise sold by
            the exporter or producer to an unaffiliated person.
                ``(2) The price of other subject merchandise sold by the
            exporter or producer to an unaffiliated person.
    If there is not a sufficient quantity of sales to provide a reasonable
    basis for comparison under paragraph (1) or (2), or the administering
    authority determines that neither of the prices described in such
    paragraphs is appropriate, then the constructed export price may be
    determined on any other reasonable basis.
        ``(f) Special Rule for Determining Profit.--
                ``(1) In general.--For purposes of subsection (d)(3),
            profit shall be an amount determined by multiplying the total
            actual profit by the applicable percentage.
                ``(2) Definitions.--For purposes of this subsection:
                        ``(A) Applicable percentage.--The term `applicable
                    percentage' means the percentage determined by dividing
                    the total United States expenses by the total expenses.
                        ``(B) Total united states expenses.--The term
                    `total United States expenses' means the total expenses
                    described in subsection (d) (1) and (2).
                        ``(C) Total expenses.--The term `total expenses'
                    means all expenses in the first of the following
                    categories which applies and which are incurred by or
                    on behalf of the foreign producer and foreign exporter
                    of the subject merchandise and by or on behalf of the
                    United States seller affiliated with the producer or
                    exporter with respect to the production and sale of
                    such merchandise:
                                ``(i) The expenses incurred with respect to
                            the subject merchandise sold in the United
                            States and the foreign like product sold in the
                            exporting country if such expenses were
                            requested by the administering authority for
                            the purpose of establishing normal value and
                            constructed export price.
                                ``(ii) The expenses incurred with respect
                            to the narrowest category of merchandise sold
                            in the United States and the exporting country
                            which includes the subject merchandise.
                                ``(iii) The expenses incurred with respect
                            to the narrowest category of merchandise sold
                            in all countries which includes the subject
                            merchandise.
                        ``(D) Total actual profit.--The term `total actual
                    profit' means the total profit earned by the foreign
                    producer, exporter, and affiliated parties described in
                    subparagraph (C) with respect to the sale of the same
                    merchandise for which total expenses are determined
                    under such subparagraph.''.

    SEC. 224. NORMAL VALUE.

        Section 773 (19 U.S.C. 1677b) is amended to read as follows:

    ``SEC. 773. NORMAL VALUE.

        ``(a) Determination.--In determining under this title whether
    subject merchandise is being, or is likely to be, sold at less than
    fair value, a fair comparison shall be made between the export price or
    constructed export price and normal value. In order to achieve a fair
    comparison with the export price or constructed export price, normal
    value shall be determined as follows:
                ``(1) Determination of normal value.--
                        ``(A) In general.--The normal value of the subject
                    merchandise shall be the price described in
                    subparagraph (B), at a time reasonably corresponding to
                    the time of the sale used to determine the export price
                    or constructed export price under section 772(a) or
                    (b).
                        ``(B) Price.--The price referred to in subparagraph
                    (A) is--
                                ``(i) the price at which the foreign like
                            product is first sold (or, in the absence of a
                            sale, offered for sale) for consumption in the
                            exporting country, in the usual commercial
                            quantities and in the ordinary course of trade
                            and, to the extent practicable, at the same
                            level of trade as the export price or
                            constructed export price, or
                                ``(ii) in a case to which subparagraph (C)
                            applies, the price at which the foreign like
                            product is so sold (or offered for sale) for
                            consumption in a country other than the
                            exporting country or the United States, if--
                                        ``(I) such price is representative,
                                        ``(II) the aggregate quantity (or,
                                    if quantity is not appropriate, value)
                                    of the foreign like product sold by the
                                    exporter or producer in such other
                                    country is 5 percent or more of the
                                    aggregate quantity (or value) of the
                                    subject merchandise sold in the United
                                    States or for export to the United
                                    States, and
                                        ``(III) the administering authority
                                    does not determine that the particular
                                    market situation in such other country
                                    prevents a proper comparison with the
                                    export price or constructed export
                                    price.
                        ``(C) Third country sales.--This subparagraph
                    applies when--
                                ``(i) the foreign like product is not sold
                            (or offered for sale) for consumption in the
                            exporting country as described in subparagraph
                            (B)(i),
                                ``(ii) the administering authority
                            determines that the aggregate quantity (or, if
                            quantity is not appropriate, value) of the
                            foreign like product sold in the exporting
                            country is insufficient to permit a proper
                            comparison with the sales of the subject
                            merchandise to the United States, or
                                ``(iii) the particular market situation in
                            the exporting country does not permit a proper
                            comparison with the export price or constructed
                            export price.
                    For purposes of clause (ii), the aggregate quantity (or
                    value) of the foreign like product sold in the
                    exporting country shall normally be considered to be
                    insufficient if such quantity (or value) is less than 5
                    percent of the aggregate quantity (or value) of sales
                    of the subject merchandise to the United States.
                ``(2) Fictitious markets.--No pretended sale or offer for
            sale, and no sale or offer for sale intended to establish a
            fictitious market, shall be taken into account in determining
            normal value. The occurrence of different movements in the
            prices at which different forms of the foreign like product are
            sold (or, in the absence of sales, offered for sale) in the
            exporting country after the issuance of an antidumping duty
            order may be considered by the administering authority as
            evidence of the establishment of a fictitious market for the
            foreign like product if the movement in such prices appears to
            reduce the amount by which the normal value exceeds the export
            price (or the constructed export price) of the subject
            merchandise.
                ``(3) Exportation from an intermediate country.--Where the
            subject merchandise is exported to the United States from an
            intermediate country, normal value shall be determined in the
            intermediate country, except that normal value may be
            determined in the country of origin of the subject merchandise
            if--
                        ``(A) the producer knew at the time of the sale
                    that the subject merchandise was destined for
                    exportation;
                        ``(B) the subject merchandise is merely
                    transshipped through the intermediate country;
                        ``(C) sales of the foreign like product in the
                    intermediate country do not satisfy the conditions of
                    paragraph (1)(C); or
                        ``(D) the foreign like product is not produced in
                    the intermediate country.
                ``(4) Use of constructed value.--If the administering
            authority determines that the normal value of the subject
            merchandise cannot be determined under paragraph (1)(B)(i),
            then, notwithstanding paragraph (1)(B)(ii), the normal value of
            the subject merchandise may be the constructed value of that
            merchandise, as determined under subsection (e).
                ``(5) Indirect sales or offers for sale.--If the foreign
            like product is sold or, in the absence of sales, offered for
            sale through an affiliated party, the prices at which the
            foreign like product is sold (or offered for sale) by such
            affiliated party may be used in determining normal value.
                ``(6) Adjustments.--The price described in paragraph (1)(B)
            shall be--
                        ``(A) increased by the cost of all containers and
                    coverings and all other costs, charges, and expenses
                    incident to placing the subject merchandise in
                    condition packed ready for shipment to the United
                    States;
                        ``(B) reduced by--
                                ``(i) when included in the price described
                            in paragraph (1)(B), the cost of all containers
                            and coverings and all other costs, charges, and
                            expenses incident to placing the foreign like
                            product in condition packed ready for shipment
                            to the place of delivery to the purchaser,
                                ``(ii) the amount, if any, included in the
                            price described in paragraph (1)(B),
                            attributable to any additional costs, charges,
                            and expenses incident to bringing the foreign
                            like product from the original place of
                            shipment to the place of delivery to the
                            purchaser, and
                                ``(iii) the amount of any taxes imposed
                            directly upon the foreign like product or
                            components thereof which have been rebated, or
                            which have not been collected, on the subject
                            merchandise, but only to the extent that such
                            taxes are added to or included in the price of
                            the foreign like product, and
                        ``(C) increased or decreased by the amount of any
                    difference (or lack thereof) between the export price
                    or constructed export price and the price described in
                    paragraph (1)(B) (other than a difference for which
                    allowance is otherwise provided under this section)
                    that is established to the satisfaction of the
                    administering authority to be wholly or partly due to--
                                ``(i) the fact that the quantities in which
                            the subject merchandise is sold or agreed to be
                            sold to the United States are greater than or
                            less than the quantities in which the foreign
                            like product is sold, agreed to be sold, or
                            offered for sale,
                                ``(ii) the fact that merchandise described
                            in subparagraph (B) or (C) of section 771(16)
                            is used in determining normal value, or
                                ``(iii) other differences in the
                            circumstances of sale.
                ``(7) Additional adjustments.--
                        ``(A) Level of trade.--The price described in
                    paragraph (1)(B) shall also be increased or decreased
                    to make due allowance for any difference (or lack
                    thereof) between the export price or constructed export
                    price and the price described in paragraph (1)(B)
                    (other than a difference for which allowance is
                    otherwise made under this section) that is shown to be
                    wholly or partly due to a difference in level of trade
                    between the export price or constructed export price
                    and normal value, if the difference in level of trade--
                                ``(i) involves the performance of different
                            selling activities; and
                                ``(ii) is demonstrated to affect price
                            comparability, based on a pattern of consistent
                            price differences between sales at different
                            levels of trade in the country in which normal
                            value is determined.
                    In a case described in the preceding sentence, the
                    amount of the adjustment shall be based on the price
                    differences between the two levels of trade in the
                    country in which normal value is determined.
                        ``(B) Constructed export price offset.--When normal
                    value is established at a level of trade which
                    constitutes a more advanced stage of distribution than
                    the level of trade of the constructed export price, but
                    the data available do not provide an appropriate basis
                    to determine under subparagraph (A)(ii) a level of
                    trade adjustment, normal value shall be reduced by the
                    amount of indirect selling expenses incurred in the
                    country in which normal value is determined on sales of
                    the foreign like product but not more than the amount
                    of such expenses for which a deduction is made under
                    section 772(d)(1)(D).
                ``(8) Adjustments to constructed value.--Constructed value
            as determined under subsection (e), may be adjusted, as
            appropriate, pursuant to this subsection.
        ``(b) Sales at Less Than Cost of Production.--
                ``(1) Determination; sales disregarded.--Whenever the
            administering authority has reasonable grounds to believe or
            suspect that sales of the foreign like product under
            consideration for the determination of normal value have been
            made at prices which represent less than the cost of production
            of that product, the administering authority shall determine
            whether, in fact, such sales were made at less than the cost of
            production. If the administering authority determines that
            sales made at less than the cost of production--
                        ``(A) have been made within an extended period of
                    time in substantial quantities, and
                        ``(B) were not at prices which permit recovery of
                    all costs within a reasonable period of time,
            such sales may be disregarded in the determination of normal
            value. Whenever such sales are disregarded, normal value shall
            be based on the remaining sales of the foreign like product in
            the ordinary course of trade. If no sales made in the ordinary
            course of trade remain, the normal value shall be based on the
            constructed value of the merchandise.
                ``(2) Definitions and special rules.--For purposes of this
            subsection--
                        ``(A) Reasonable grounds to believe or suspect.--
                    There are reasonable grounds to believe or suspect that
                    sales of the foreign like product were made at prices
                    that are less than the cost of production of the
                    product, if--
                                ``(i) in an investigation initiated under
                            section 732 or a review conducted under section
                            751, an interested party described in
                            subparagraph (C), (D), (E), (F), or (G) of
                            section 771(9) provides information, based upon
                            observed prices or constructed prices or costs,
                            that sales of the foreign like product under
                            consideration for the determination of normal
                            value have been made at prices which represent
                            less than the cost of production of the
                            product; or
                                ``(ii) in a review conducted under section
                            751 involving a specific exporter, the
                            administering authority disregarded some or all
                            of the exporter's sales pursuant to paragraph
                            (1) in the investigation or if a review has
                            been completed, in the most recently completed
                            review.
                        ``(B) Extended period of time.--The term `extended
                    period of time' means a period that is normally 1 year,
                    but not less than 6 months.
                        ``(C) Substantial quantities.--Sales made at prices
                    below the cost of production have been made in
                    substantial quantities if--
                                ``(i) the volume of such sales represents
                            20 percent or more of the volume of sales under
                            consideration for the determination of normal
                            value, or
                                ``(ii) the weighted average per unit price
                            of the sales under consideration for the
                            determination of normal value is less than the
                            weighted average per unit cost of production
                            for such sales.
                        ``(D) Recovery of costs.--If prices which are below
                    the per unit cost of production at the time of sale are
                    above the weighted average per unit cost of production
                    for the period of investigation or review, such prices
                    shall be considered to provide for recovery of costs
                    within a reasonable period of time.
                ``(3) Calculation of cost of production.--For purposes of
            this subtitle, the cost of production shall be an amount equal
            to the sum of--
                        ``(A) the cost of materials and of fabrication or
                    other processing of any kind employed in producing the
                    foreign like product, during a period which would
                    ordinarily permit the production of that foreign like
                    product in the ordinary course of business;
                        ``(B) an amount for selling, general, and
                    administrative expenses based on actual data pertaining
                    to production and sales of the foreign like product by
                    the exporter in question; and
                        ``(C) the cost of all containers and coverings of
                    whatever nature, and all other expenses incidental to
                    placing the foreign like product in condition packed
                    ready for shipment.
            For purposes of subparagraph (A), if the normal value is based
            on the price of the foreign like product sold for consumption
            in a country other than the exporting country, the cost of
            materials shall be determined without regard to any internal
            tax in the exporting country imposed on such materials or their
            disposition which are remitted or refunded upon exportation.
        ``(c) Nonmarket Economy Countries.--
                ``(1) In general.--If--
                        ``(A) the subject merchandise is exported from a
                    nonmarket economy country, and
                        ``(B) the administering authority finds that
                    available information does not permit the normal value
                    of the subject merchandise to be determined under
                    subsection (a),
            the administering authority shall determine the normal value of
            the subject merchandise on the basis of the value of the
            factors of production utilized in producing the merchandise and
            to which shall be added an amount for general expenses and
            profit plus the cost of containers, coverings, and other
            expenses. Except as provided in paragraph (2), the valuation of
            the factors of production shall be based on the best available
            information regarding the values of such factors in a market
            economy country or countries considered to be appropriate by
            the administering authority.
                ``(2) Exception.--If the administering authority finds that
            the available information is inadequate for purposes of
            determining the normal value of subject merchandise under
            paragraph (1), the administering authority shall determine the
            normal value on the basis of the price at which merchandise
            that is--
                        ``(A) comparable to the subject merchandise, and
                        ``(B) produced in one or more market economy
                    countries that are at a level of economic development
                    comparable to that of the nonmarket economy country,
            is sold in other countries, including the United States.
                ``(3) Factors of production.--For purposes of paragraph
            (1), the factors of production utilized in producing
            merchandise include, but are not limited to--
                        ``(A) hours of labor required,
                        ``(B) quantities of raw materials employed,
                        ``(C) amounts of energy and other utilities
                    consumed, and
                        ``(D) representative capital cost, including
                    depreciation.
                ``(4) Valuation of factors of production.--The
            administering authority, in valuing factors of production under
            paragraph (1), shall utilize, to the extent possible, the
            prices or costs of factors of production in one or more market
            economy countries that are--
                        ``(A) at a level of economic development comparable
                    to that of the nonmarket economy country, and
                        ``(B) significant producers of comparable
                    merchandise.
        ``(d) Special Rule for Certain Multinational Corporations.--
    Whenever, in the course of an investigation under this title, the
    administering authority determines that--
                ``(1) subject merchandise exported to the United States is
            being produced in facilities which are owned or controlled,
            directly or indirectly, by a person, firm, or corporation which
            also owns or controls, directly or indirectly, other facilities
            for the production of the foreign like product which are
            located in another country or countries,
                ``(2) subsection (a)(1)(C) applies, and
                ``(3) the normal value of the foreign like product produced
            in one or more of the facilities outside the exporting country
            is higher than the normal value of the foreign like product
            produced in the facilities located in the exporting country,
    it shall determine the normal value of the subject merchandise by
    reference to the normal value at which the foreign like product is sold
    in substantial quantities from one or more facilities outside the
    exporting country. The administering authority, in making any
    determination under this paragraph, shall make adjustments for the
    difference between the cost of production (including taxes, labor,
    materials, and overhead) of the foreign like product produced in
    facilities outside the exporting country and costs of production of the
    foreign like product produced in facilities in the exporting country,
    if such differences are demonstrated to its satisfaction. For purposes
    of this subsection, in determining the normal value of the foreign like
    product produced in a country outside of the exporting country, the
    administering authority shall determine its price at the time of
    exportation from the exporting country and shall make any adjustments
    required by subsection (a) for the cost of all containers and coverings
    and all other costs, charges, and expenses incident to placing the
    merchandise in condition packed ready for shipment to the United States
    by reference to such costs in the exporting country.
        ``(e) Constructed Value.--For purposes of this title, the
    constructed value of imported merchandise shall be an amount equal to
    the sum of--
                ``(1) the cost of materials and fabrication or other
            processing of any kind employed in producing the merchandise,
            during a period which would ordinarily permit the production of
            the merchandise in the ordinary course of business;
                ``(2)(A) the actual amounts incurred and realized by the
            specific exporter or producer being examined in the
            investigation or review for selling, general, and
            administrative expenses, and for profits, in connection with
            the production and sale of a foreign like product, in the
            ordinary course of trade, for consumption in the foreign
            country, or
                ``(B) if actual data are not available with respect to the
            amounts described in subparagraph (A), then--
                        ``(i) the actual amounts incurred and realized by
                    the specific exporter or producer being examined in the
                    investigation or review for selling, general, and
                    administrative expenses, and for profits, in connection
                    with the production and sale, for consumption in the
                    foreign country, of merchandise that is in the same
                    general category of products as the subject
                    merchandise,
                        ``(ii) the weighted average of the actual amounts
                    incurred and realized by exporters or producers that
                    are subject to the investigation or review (other than
                    the exporter or producer described in clause (i)) for
                    selling, general, and administrative expenses, and for
                    profits, in connection with the production and sale of
                    a foreign like product, in the ordinary course of
                    trade, for consumption in the foreign country, or
                        ``(iii) the amounts incurred and realized for
                    selling, general, and administrative expenses, and for
                    profits, based on any other reasonable method, except
                    that the amount allowed for profit may not exceed the
                    amount normally realized by exporters or producers
                    (other than the exporter or producer described in
                    clause (i)) in connection with the sale, for
                    consumption in the foreign country, of merchandise that
                    is in the same general category of products as the
                    subject merchandise; and
                ``(3) the cost of all containers and coverings of whatever
            nature, and all other expenses incidental to placing the
            subject merchandise in condition packed ready for shipment to
            the United States.
     For purposes of paragraph (1), the cost of materials shall be
    determined without regard to any internal tax in the exporting country
    imposed on such materials or their disposition which are remitted or
    refunded upon exportation of the subject merchandise produced from such
    materials.
        ``(f) Special Rules for Calculation of Cost of Production and for
    Calculation of Constructed Value.--For purposes of subsections (b) and
    (e).--
                ``(1) Costs.--
                        ``(A) In general.--Costs shall normally be
                    calculated based on the records of the exporter or
                    producer of the merchandise, if such records are kept
                    in accordance with the generally accepted accounting
                    principles of the exporting country (or the producing
                    country, where appropriate) and reasonably reflect the
                    costs associated with the production and sale of the
                    merchandise. The administering authority shall consider
                    all available evidence on the proper allocation of
                    costs, including that which is made available by the
                    exporter or producer on a timely basis, if such
                    allocations have been historically used by the exporter
                    or producer, in particular for establishing appropriate
                    amortization and depreciation periods, and allowances
                    for capital expenditures and other development costs.
                        ``(B) Nonrecurring costs.--Costs shall be adjusted
                    appropriately for those nonrecurring costs that benefit
                    current or future production, or both.
                        ``(C) Startup costs.--
                                ``(i) In general.--Costs shall be adjusted
                            appropriately for circumstances in which costs
                            incurred during the time period covered by the
                            investigation or review are affected by startup
                            operations.
                                ``(ii) Startup operations.--Adjustments
                            shall be made for startup operations only
                            where--
                                        ``(I) a producer is using new
                                    production facilities or producing a
                                    new product that requires substantial
                                    additional investment, and
                                        ``(II) production levels are
                                    limited by technical factors associated
                                    with the initial phase of commercial
                                    production.
                            For purposes of subclause (II), the initial
                            phase of commercial production ends at the end
                            of the startup period. In determining whether
                            commercial production levels have been
                            achieved, the administering authority shall
                            consider factors unrelated to startup
                            operations that might affect the volume of
                            production processed, such as demand,
                            seasonality, or business cycles.
                                ``(iii) Adjustment for startup
                            operations.--The adjustment for startup
                            operations shall be made by substituting the
                            unit production costs incurred with respect to
                            the merchandise at the end of the startup
                            period for the unit production costs incurred
                            during the startup period. If the startup
                            period extends beyond the period of the
                            investigation or review under this title, the
                            administering authority shall use the most
                            recent cost of production data that it
                            reasonably can obtain, analyze, and verify
                            without delaying the timely completion of the
                            investigation or review. For purposes of this
                            subparagraph, the startup period ends at the
                            point at which the level of commercial
                            production that is characteristic of the
                            merchandise, producer, or industry concerned is
                            achieved.
                ``(2) Transactions disregarded.--A transaction directly or
            indirectly between affiliated persons may be disregarded if, in
            the case of any element of value required to be considered, the
            amount representing that element does not fairly reflect the
            amount usually reflected in sales of merchandise under
            consideration in the market under consideration. If a
            transaction is disregarded under the preceding sentence and no
            other transactions are available for consideration, the
            determination of the amount shall be based on the information
            available as to what the amount would have been if the
            transaction had occurred between persons who are not
            affiliated.
                ``(3) Major input rule.--If, in the case of a transaction
            between affiliated persons involving the production by one of
            such persons of a major input to the merchandise, the
            administering authority has reasonable grounds to believe or
            suspect that an amount represented as the value of such input
            is less than the cost of production of such input, then the
            administering authority may determine the value of the major
            input on the basis of the information available regarding such
            cost of production, if such cost is greater than the amount
            that would be determined for such input under paragraph (2).''.

    SEC. 225. CURRENCY CONVERSION.

        (a) In General.--Subtitle D of title VII (19 U.S.C. 1677 et seq.)
    is amended by inserting after section 773 the following new section:

    ``SEC. 773A. CURRENCY CONVERSION.

        ``(a) In General.--In an antidumping proceeding under this title,
    the administering authority shall convert foreign currencies into
    United States dollars using the exchange rate in effect on the date of
    sale of the subject merchandise, except that, if it is established that
    a currency transaction on forward markets is directly linked to an
    export sale under consideration, the exchange rate specified with
    respect to such currency in the forward sale agreement shall be used to
    convert the foreign currency. Fluctuations in exchange rates shall be
    ignored.
        ``(b) Sustained Movement in Foreign Currency Value.--In an
    investigation under subtitle B, if there is a sustained movement in the
    value of the foreign currency relative to the United States dollar, the
    administering authority shall allow exporters at least 60 days to
    adjust their export prices to reflect such sustained movement.''.
        (b) Conforming Amendment.--The table of contents for title VII is
    amended by inserting after the item relating to section 773 the
    following new item:

    ``Sec. 773A. Currency conversion.''.

    SEC. 226. PROPRIETARY AND NONPROPRIETARY INFORMATION.

        (a) Proprietary Status Maintained.--
                (1) In general.--Section 777(b)(1) (19 U.S.C. 1677f(b)(1))
            is amended to read as follows:
                ``(1) Proprietary status maintained.--
                        ``(A) In general.--Except as provided in subsection
                    (a)(4)(A) and subsection (c), information submitted to
                    the administering authority or the Commission which is
                    designated as proprietary by the person submitting the
                    information shall not be disclosed to any person
                    without the consent of the person submitting the
                    information, other than--
                                ``(i) to an officer or employee of the
                            administering authority or the Commission who
                            is directly concerned with carrying out the
                            investigation in connection with which the
                            information is submitted or any review under
                            this title covering the same subject
                            merchandise, or
                                ``(ii) to an officer or employee of the
                            United States Customs Service who is directly
                            involved in conducting an investigation
                            regarding fraud under this title.
                        ``(B) Additional requirements.--The administering
                    authority and the Commission shall require that
                    information for which proprietary treatment is
                    requested be accompanied by--
                                ``(i) either--
                                        ``(I) a non-proprietary summary in
                                    sufficient detail to permit a
                                    reasonable understanding of the
                                    substance of the information submitted
                                    in confidence, or
                                        ``(II) a statement that the
                                    information is not susceptible to
                                    summary accompanied by a statement of
                                    the reasons in support of the
                                    contention, and
                                ``(ii) either--
                                        ``(I) a statement which permits the
                                    administering authority or the
                                    Commission to release under
                                    administrative protective order, in
                                    accordance with subsection (c), the
                                    information submitted in confidence, or
                                        ``(II) a statement to the
                                    administering authority or the
                                    Commission that the business
                                    proprietary information is of a type
                                    that should not be released under
                                    administrative protective order.''.
                (2) Section 751 reviews.--Section 777(b) (19 U.S.C.
            1677f(b)) is amended by adding at the end the following:
                ``(3) Section 751 reviews.--Notwithstanding the provisions
            of paragraph (1), information submitted to the administering
            authority or the Commission in connection with a review under
            section 751(b) or 751(c) which is designated as proprietary by
            the person submitting the information may, if the review
            results in the revocation of an order or finding (or
            termination of a suspended investigation) under section 751(d),
            be used by the agency to which the information was originally
            submitted in any investigation initiated within 2 years after
            the date of the revocation or termination pursuant to a
            petition covering the same subject merchandise.''.
        (b) Unwarranted Proprietary Designation.--Section 777(b)(2) (19
    U.S.C. 1677f(b)(2)) is amended by adding at the end the following new
    sentence: ``In a case in which the administering authority or the
    Commission returns the information to the person submitting it, the
    person may thereafter submit other material concerning the subject
    matter of the returned information if the submission is made within the
    time otherwise provided for submitting such material.''.

    SEC. 227. OPPORTUNITY FOR COMMENT BY CONSUMERS AND INDUSTRIAL USERS.

        Section 777 (19 U.S.C. 1677f) is amended by adding at the end the
    following new subsection:
        ``(h) Opportunity for Comment by Consumers and Industrial Users.--
    The administering authority and the Commission shall provide an
    opportunity for industrial users of the subject merchandise and, if the
    merchandise is sold at the retail level, for representative consumer
    organizations, to submit relevant information to the administering
    authority concerning dumping or a countervailable subsidy, and to the
    Commission concerning material injury by reason of dumped or subsidized
    imports.''.

    SEC. 228. PUBLIC NOTICE AND EXPLANATION OF DETERMINATIONS.

        Section 777 (19 U.S.C. 1677f), as amended by section 227, is
    amended by adding at the end the following:
        ``(i) Publication of Determinations; Requirements for Final
    Determinations.--
                ``(1) In general.--Whenever the administering authority
            makes a determination under section 702 or 732 whether to
            initiate an investigation, or the administering authority or
            the Commission makes a preliminary determination under section
            703 or 733, a final determination under section 705 or section
            735, a preliminary or final determination in a review under
            section 751, a determination to suspend an investigation under
            this title, or a determination under section 753, the
            administering authority or the Commission, as the case may be,
            shall publish the facts and conclusions supporting that
            determination, and shall publish notice of that determination
            in the Federal Register.
                ``(2) Contents of notice or determination.--The notice or
            determination published under paragraph (1) shall include, to
            the extent applicable--
                        ``(A) in the case of a determination of the
                    administering authority--
                                ``(i) the names of the exporters or
                            producers of the subject merchandise or, when
                            providing such names is impracticable, the
                            countries exporting the subject merchandise to
                            the United States,
                                ``(ii) a description of the subject
                            merchandise that is sufficient to identify the
                            subject merchandise for customs purposes,
                                ``(iii)(I) with respect to a determination
                            in an investigation under subtitle A or section
                            753 or in a review of a countervailing duty
                            order, the amount of the countervailable
                            subsidy established and a full explanation of
                            the methodology used in establishing the
                            amount, and
                                ``(II) with respect to a determination in
                            an investigation under subtitle B or in a
                            review of an antidumping duty order, the
                            weighted average dumping margins established
                            and a full explanation of the methodology used
                            in establishing such margins, and
                                ``(iv) the primary reasons for the
                            determination; and
                        ``(B) in the case of a determination of the
                    Commission--
                                ``(i) considerations relevant to the
                            determination of injury, and
                                ``(ii) the primary reasons for the
                            determination.
                ``(3) Additional requirements for final determinations.--In
            addition to the requirements set forth in paragraph (2)--
                        ``(A) the administering authority shall include in
                    a final determination described in paragraph (1) an
                    explanation of the basis for its determination that
                    addresses relevant arguments, made by interested
                    parties who are parties to the investigation or review
                    (as the case may be), concerning the establishment of
                    dumping or a countervailable subsidy, or the suspension
                    of the investigation, with respect to which the
                    determination is made; and
                        ``(B) the Commission shall include in a final
                    determination of injury an explanation of the basis for
                    its determination that addresses relevant arguments
                    that are made by interested parties who are parties to
                    the investigation or review (as the case may be)
                    concerning volume, price effects, and impact on the
                    industry of imports of the subject merchandise.''.

    SEC. 229. SAMPLING AND AVERAGING; DETERMINATION OF WEIGHTED AVERAGE
                  DUMPING MARGIN.

        (a) In General.--Section 777A (19 U.S.C. 1677f-1) is amended to
    read as follows:

    ``SEC. 777A. SAMPLING AND AVERAGING; DETERMINATION OF WEIGHTED AVERAGE
                  DUMPING MARGIN.

        ``(a) In General.--For purposes of determining the export price (or
    constructed export price) under section 772 or the normal value under
    section 773, and in carrying out reviews under section 751, the
    administering authority may--
                ``(1) use averaging and statistically valid samples, if
            there is a significant volume of sales of the subject
            merchandise or a significant number or types of products, and
                ``(2) decline to take into account adjustments which are
            insignificant in relation to the price or value of the
            merchandise.
        ``(b) Selection of Averages and Samples.--The authority to select
    averages and statistically valid samples shall rest exclusively with
    the administering authority. The administering authority shall, to the
    greatest extent possible, consult with the exporters and producers
    regarding the method to be used to select exporters, producers, or
    types of products under this section.
        ``(c) Determination of Dumping Margin.--
                ``(1) General rule.--In determining weighted average
            dumping margins under section 733(d), 735(c), or 751(a), the
            administering authority shall determine the individual weighted
            average dumping margin for each known exporter and producer of
            the subject merchandise.
                ``(2) Exception.--If it is not practicable to make
            individual weighted average dumping margin determinations under
            paragraph (1) because of the large number of exporters or
            producers involved in the investigation or review, the
            administering authority may determine the weighted average
            dumping margins for a reasonable number of exporters or
            producers by limiting its examination to--
                        ``(A) a sample of exporters, producers, or types of
                    products that is statistically valid based on the
                    information available to the administering authority at
                    the time of selection, or
                        ``(B) exporters and producers accounting for the
                    largest volume of the subject merchandise from the
                    exporting country that can be reasonably examined.
        ``(d) Determination of Less Than Fair Value.--
                ``(1) Investigations.--
                        ``(A) In general.--In an investigation under
                    subtitle B, the administering authority shall determine
                    whether the subject merchandise is being sold in the
                    United States at less than fair value--
                                ``(i) by comparing the weighted average of
                            the normal values to the weighted average of
                            the export prices (and constructed export
                            prices) for comparable merchandise, or
                                ``(ii) by comparing the normal values of
                            individual transactions to the export prices
                            (or constructed export prices) of individual
                            transactions for comparable merchandise.
                        ``(B) Exception.--The administering authority may
                    determine whether the subject merchandise is being sold
                    in the United States at less than fair value by
                    comparing the weighted average of the normal values to
                    the export prices (or constructed export prices) of
                    individual transactions for comparable merchandise,
                    if--
                                ``(i) there is a pattern of export prices
                            (or constructed export prices) for comparable
                            merchandise that differ significantly among
                            purchasers, regions, or periods of time, and
                                ``(ii) the administering authority explains
                            why such differences cannot be taken into
                            account using a method described in paragraph
                            (1)(A)(i) or (ii).
                ``(2) Reviews.--In a review under section 751, when
            comparing export prices (or constructed export prices) of
            individual transactions to the weighted average price of sales
            of the foreign like product, the administering authority shall
            limit its averaging of prices to a period not exceeding the
            calendar month that corresponds most closely to the calendar
            month of the individual export sale.''.
        (b) Dumping Margin; Weighted Average Dumping Margin.--Section 771
    (19 U.S.C. 1677), as amended by section 222(i), is amended by adding at
    the end the following new paragraph:
                ``(35) Dumping margin; weighted average dumping margin.--
                        ``(A) Dumping margin.--The term `dumping margin'
                    means the amount by which the normal value exceeds the
                    export price or constructed export price of the subject
                    merchandise.
                        ``(B) Weighted average dumping margin.--The term
                    `weighted average dumping margin' is the percentage
                    determined by dividing the aggregate dumping margins
                    determined for a specific exporter or producer by the
                    aggregate export prices and constructed export prices
                    of such exporter or producer.
                        ``(C) Magnitude of the margin of dumping.--The
                    magnitude of the margin of dumping used by the
                    Commission shall be--
                                ``(i) in making a preliminary determination
                            under section 733(a) in an investigation
                            (including any investigation in which the
                            Commission cumulatively assesses the volume and
                            effect of imports under paragraph (7)(G)(i)),
                            the dumping margin or margins published by the
                            administering authority in its notice of
                            initiation of the investigation;
                                ``(ii) in making a final determination
                            under section 735(b), the dumping margin or
                            margins most recently published by the
                            administering authority prior to the closing of
                            the Commission's administrative record;
                                ``(iii) in a review under section
                            751(b)(2), the most recent dumping margin or
                            margins determined by the administering
                            authority under section 752(c)(3), if any, or
                            under section 733(b) or 735(a); and
                                ``(iv) in a review under section 751(c),
                            the dumping margin or margins determined by the
                            administering authority under section
                            752(c)(3).''.

    SEC. 230. ANTICIRCUMVENTION.

        (a) In General.--Subsections (a) and (b) of section 781 (19 U.S.C.
    1677j (a) and (b)) are amended to read as follows:
        ``(a) Merchandise Completed or Assembled in the United States.--
                ``(1) In general.--If--
                        ``(A) merchandise sold in the United States is of
                    the same class or kind as any other merchandise that is
                    the subject of--
                                ``(i) an antidumping duty order issued
                            under section 736,
                                ``(ii) a finding issued under the
                            Antidumping Act, 1921, or
                                ``(iii) a countervailing duty order issued
                            under section 706 or section 303,
                        ``(B) such merchandise sold in the United States is
                    completed or assembled in the United States from parts
                    or components produced in the foreign country with
                    respect to which such order or finding applies,
                        ``(C) the process of assembly or completion in the
                    United States is minor or insignificant, and
                        ``(D) the value of the parts or components referred
                    to in subparagraph (B) is a significant portion of the
                    total value of the merchandise,
            the administering authority, after taking into account any
            advice provided by the Commission under subsection (e), may
            include within the scope of such order or finding the imported
            parts or components referred to in subparagraph (B) that are
            used in the completion or assembly of the merchandise in the
            United States at any time such order or finding is in effect.
                ``(2) Determination of whether process is minor or
            insignificant.--In determining whether the process of assembly
            or completion is minor or insignificant under paragraph (1)(C),
            the administering authority shall take into account--
                        ``(A) the level of investment in the United States,
                        ``(B) the level of research and development in the
                    United States,
                        ``(C) the nature of the production process in the
                    United States,
                        ``(D) the extent of production facilities in the
                    United States, and
                        ``(E) whether the value of the processing performed
                    in the United States represents a small proportion of
                    the value of the merchandise sold in the United States.
                ``(3) Factors to consider.--In determining whether to
            include parts or components in a countervailing or antidumping
            duty order or finding under paragraph (1), the administering
            authority shall take into account such factors as--
                        ``(A) the pattern of trade, including sourcing
                    patterns,
                        ``(B) whether the manufacturer or exporter of the
                    parts or components is affiliated with the person who
                    assembles or completes the merchandise sold in the
                    United States from the parts or components produced in
                    the foreign country with respect to which the order or
                    finding described in paragraph (1) applies, and
                        ``(C) whether imports into the United States of the
                    parts or components produced in such foreign country
                    have increased after the initiation of the
                    investigation which resulted in the issuance of such
                    order or finding.
        ``(b) Merchandise Completed or Assembled in Other Foreign
    Countries.--
                ``(1) In general.--If--
                        ``(A) merchandise imported into the United States
                    is of the same class or kind as any merchandise
                    produced in a foreign country that is the subject of--
                                ``(i) an antidumping duty order issued
                            under section 736,
                                ``(ii) a finding issued under the
                            Antidumping Act, 1921, or
                                ``(iii) a countervailing duty order issued
                            under section 706 or section 303,
                        ``(B) before importation into the United States,
                    such imported merchandise is completed or assembled in
                    another foreign country from merchandise which--
                                ``(i) is subject to such order or finding,
                            or
                                ``(ii) is produced in the foreign country
                            with respect to which such order or finding
                            applies,
                        ``(C) the process of assembly or completion in the
                    foreign country referred to in subparagraph (B) is
                    minor or insignificant,
                        ``(D) the value of the merchandise produced in the
                    foreign country to which the antidumping duty order
                    applies is a significant portion of the total value of
                    the merchandise exported to the United States, and
                        ``(E) the administering authority determines that
                    action is appropriate under this paragraph to prevent
                    evasion of such order or finding,
            the administering authority, after taking into account any
            advice provided by the Commission under subsection (e), may
            include such imported merchandise within the scope of such
            order or finding at any time such order or finding is in
            effect.
                ``(2) Determination of whether process is minor or
            insignificant.--In determining whether the process of assembly
            or completion is minor or insignificant under paragraph (1)(C),
            the administering authority shall take into account--
                        ``(A) the level of investment in the foreign
                    country,
                        ``(B) the level of research and development in the
                    foreign country,
                        ``(C) the nature of the production process in the
                    foreign country,
                        ``(D) the extent of production facilities in the
                    foreign country, and
                        ``(E) whether the value of the processing performed
                    in the foreign country represents a small proportion of
                    the value of the merchandise imported into the United
                    States.
                ``(3) Factors to consider.--In determining whether to
            include merchandise assembled or completed in a foreign country
            in a countervailing duty order or an antidumping duty order or
            finding under paragraph (1), the administering authority shall
            take into account such factors as--
                        ``(A) the pattern of trade, including sourcing
                    patterns,
                        ``(B) whether the manufacturer or exporter of the
                    merchandise described in paragraph (1)(B) is affiliated
                    with the person who uses the merchandise described in
                    paragraph (1)(B) to assemble or complete in the foreign
                    country the merchandise that is subsequently imported
                    into the United States, and
                        ``(C) whether imports into the foreign country of
                    the merchandise described in paragraph (1)(B) have
                    increased after the initiation of the investigation
                    which resulted in the issuance of such order or
                    finding.''.
        (b) Time Limits for Administering Authority Determinations.--
    Section 781 (19 U.S.C. 1677j) is amended by adding at the end the
    following:
        ``(f) Time Limits for Administering Authority Determinations.--The
    administering authority shall, to the maximum extent practicable, make
    the determinations under this section within 300 days from the date of
    the initiation of a countervailing duty or antidumping circumvention
    inquiry under this section.''.

    SEC. 231. EVIDENCE.

        (a) Conduct of Investigations and Administrative Reviews.--Subtitle
    D of title VII (19 U.S.C. 1671) is amended by adding at the end the
    following new section:

    ``SEC. 782. CONDUCT OF INVESTIGATIONS AND ADMINISTRATIVE REVIEWS.

        ``(a) Treatment of Voluntary Responses in Countervailing or
    Antidumping Duty Investigations and Reviews.--In any investigation
    under subtitle A or B or a review under section 751(a) in which the
    administering authority has, under section 777A(c)(2) or section
    777A(e)(2)(A) (whichever is applicable), limited the number of
    exporters or producers examined, or determined a single country-wide
    rate, the administering authority shall establish an individual
    countervailable subsidy rate or an individual weighted average dumping
    margin for any exporter or producer not initially selected for
    individual examination under such sections who submits to the
    administering authority the information requested from exporters or
    producers selected for examination, if--
                ``(1) such information is so submitted by the date
            specified--
                        ``(A) for exporters and producers that were
                    initially selected for examination, or
                        ``(B) for the foreign government, in a
                    countervailing duty case where the administering
                    authority has determined a single country-wide rate;
                    and
                ``(2) the number of exporters or producers who have
            submitted such information is not so large that individual
            examination of such exporters or producers would be unduly
            burdensome and inhibit the timely completion of the
            investigation.
        ``(b) Certification of Submissions.--Any person providing factual
    information to the administering authority or the Commission in
    connection with a proceeding under this title on behalf of the
    petitioner or any other interested party shall certify that such
    information is accurate and complete to the best of that person's
    knowledge.
        ``(c) Difficulties in Meeting Requirements.--
                ``(1) Notification by interested party.--If an interested
            party, promptly after receiving a request from the
            administering authority or the Commission for information,
            notifies the administering authority or the Commission (as the
            case may be) that such party is unable to submit the
            information requested in the requested form and manner,
            together with a full explanation and suggested alternative
            forms in which such party is able to submit the information,
            the administering authority or the Commission (as the case may
            be) shall consider the ability of the interested party to
            submit the information in the requested form and manner and may
            modify such requirements to the extent necessary to avoid
            imposing an unreasonable burden on that party.
                ``(2) Assistance to interested parties.--The administering
            authority and the Commission shall take into account any
            difficulties experienced by interested parties, particularly
            small companies, in supplying information requested by the
            administering authority or the Commission in connection with
            investigations and reviews under this title, and shall provide
            to such interested parties any assistance that is practicable
            in supplying such information.
        ``(d) Deficient Submissions.--If the administering authority or the
    Commission determines that a response to a request for information
    under this title does not comply with the request, the administering
    authority or the Commission (as the case may be) shall promptly inform
    the person submitting the response of the nature of the deficiency and
    shall, to the extent practicable, provide that person with an
    opportunity to remedy or explain the deficiency in light of the time
    limits established for the completion of investigations or reviews
    under this title. If that person submits further information in
    response to such deficiency and either--
                ``(1) the administering authority or the Commission (as the
            case may be) finds that such response is not satisfactory, or
                ``(2) such response is not submitted within the applicable
            time limits,
    then the administering authority or the Commission (as the case may be)
    may, subject to subsection (e), disregard all or part of the original
    and subsequent responses.
        ``(e) Use of Certain Information.--In reaching a determination
    under section 703, 705, 733, 735, 751, or 753 the administering
    authority and the Commission shall not decline to consider information
    that is submitted by an interested party and is necessary to the
    determination but does not meet all the applicable requirements
    established by the administering authority or the Commission, if--
                ``(1) the information is submitted by the deadline
            established for its submission,
                ``(2) the information can be verified,
                ``(3) the information is not so incomplete that it cannot
            serve as a reliable basis for reaching the applicable
            determination,
                ``(4) the interested party has demonstrated that it acted
            to the best of its ability in providing the information and
            meeting the requirements established by the administering
            authority or the Commission with respect to the information,
            and
                ``(5) the information can be used without undue
            difficulties.
        ``(f) Nonacceptance of Submissions.--If the administering authority
    or the Commission declines to accept into the record any information
    submitted in an investigation or review under this title, it shall, to
    the extent practicable, provide to the person submitting the
    information a written explanation of the reasons for not accepting the
    information.
        ``(g) Public Comment on Information.--Information that is submitted
    on a timely basis to the administering authority or the Commission
    during the course of a proceeding under this title shall be subject to
    comment by other parties to the proceeding within such reasonable time
    as the administering authority or the Commission shall provide. The
    administering authority and the Commission, before making a final
    determination under section 705, 735, 751, or 753 shall cease
    collecting information and shall provide the parties with a final
    opportunity to comment on the information obtained by the administering
    authority or the Commission (as the case may be) upon which the parties
    have not previously had an opportunity to comment. Comments containing
    new factual information shall be disregarded.
        ``(h) Termination of Investigation or Revocation of Order for Lack
    of Interest.--The administering authority may--
                ``(1) terminate an investigation under subtitle A or B with
            respect to a domestic like product if, prior to publication of
            an order under section 706 or 736, the administering authority
            determines that producers accounting for substantially all of
            the production of that domestic like product have expressed a
            lack of interest in issuance of an order; and
                ``(2) revoke an order issued under section 706 or 736 with
            respect to a domestic like product, or terminate an
            investigation suspended under section 704 or 734 with respect
            to a domestic like product, if the administering authority
            determines that producers accounting for substantially all of
            the production of that domestic like product, have expressed a
            lack of interest in the order or suspended investigation.
        ``(i) Verification.--The administering authority shall verify all
    information relied upon in making--
                ``(1) a final determination in an investigation,
                ``(2) a revocation under section 751(d), and
                ``(3) a final determination in a review under section
            751(a), if--
                        ``(A) verification is timely requested by an
                    interested party as defined in section 771(9)(C), (D),
                    (E), (F), or (G), and
                        ``(B) no verification was made under this
                    subparagraph during the 2 immediately preceding reviews
                    and determinations under section 751(a) of the same
                    order, finding, or notice, except that this clause
                    shall not apply if good cause for verification is
                    shown.''.
        (b) Availability of Nonproprietary Information.--Section 777(a)(4)
    (19 U.S.C. 1677f(a)(4)) is amended by striking ``may disclose'' and
    inserting ``shall disclose''.
        (c) Determinations on the Basis of the Facts Available.--Section
    776 (19 U.S.C. 1677e) is amended to read as follows:

    ``SEC. 776. DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE.

        ``(a) In General.--If--
                ``(1) necessary information is not available on the record,
            or
                ``(2) an interested party or any other person--
                        ``(A) withholds information that has been requested
                    by the administering authority or the Commission under
                    this title,
                        ``(B) fails to provide such information by the
                    deadlines for submission of the information or in the
                    form and manner requested, subject to subsections
                    (c)(1) and (e) of section 782,
                        ``(C) significantly impedes a proceeding under this
                    title, or
                        ``(D) provides such information but the information
                    cannot be verified as provided in section 782(i),
    the administering authority and the Commission shall, subject to
    section 782(d), use the facts otherwise available in reaching the
    applicable determination under this title.
        ``(b) Adverse Inferences.--If the administering authority or the
    Commission (as the case may be) finds that an interested party has
    failed to cooperate by not acting to the best of its ability to comply
    with a request for information from the administering authority or the
    Commission, the administering authority or the Commission (as the case
    may be), in reaching the applicable determination under this title, may
    use an inference that is adverse to the interests of that party in
    selecting from among the facts otherwise available. Such adverse
    inference may include reliance on information derived from--
                ``(1) the petition,
                ``(2) a final determination in the investigation under this
            title,
                ``(3) any previous review under section 751 or
            determination under section 753, or
                ``(4) any other information placed on the record.
        ``(c) Corroboration of Secondary Information.--When the
    administering authority or the Commission relies on secondary
    information rather than on information obtained in the course of an
    investigation or review, the administering authority or the Commission,
    as the case may be, shall, to the extent practicable, corroborate that
    information from independent sources that are reasonably at their
    disposal.''.
        (d) Conforming Amendments.--
                (1) Section 777(e) (19 U.S.C. 1677f(e)) is repealed.
                (2) The table of contents for title VII is amended--
                        (A) by amending the item relating to section 776 to
                    read as follows:

    ``Sec. 776. Determinations on the basis of the facts available.'';

                    and
                        (B) by inserting after the item relating to section
                    781 the following new item:

    ``Sec. 782. Conduct of investigations and administrative reviews.''.

    SEC. 232. ANTIDUMPING PETITIONS BY THIRD COUNTRIES.

        (a) In General.--Subtitle D of title VII (19 U.S.C. 1677 et seq.),
    as amended by section 231(a), is amended by adding at the end the
    following new section:

    ``SEC. 783. ANTIDUMPING PETITIONS BY THIRD COUNTRIES.

        ``(a) Filing of Petition.--The government of a WTO member may file
    with the Trade Representative a petition requesting that an
    investigation be conducted to determine if--
                ``(1) imports from another country are being sold in the
            United States at less than fair value, and
                ``(2) an industry in the petitioning country is materially
            injured by reason of those imports.
        ``(b) Initiation.--The Trade Representative, after consultation
    with the administering authority and the Commission and obtaining the
    approval of the WTO Council for Trade in Goods, shall determine whether
    to initiate an investigation described in subsection (a).
        ``(c) Determinations.--Upon initiation of an investigation under
    this section, the Trade Representative shall request the following
    determinations be made according to substantive and procedural
    requirements specified by the Trade Representative, notwithstanding any
    other provision of this title:
                ``(1) The administering authority shall determine whether
            imports into the United States of the subject merchandise are
            being sold at less than fair value.
                ``(2) The Commission shall determine whether an industry in
            the petitioning country is materially injured by reason of
            imports of the subject merchandise into the United States.
        ``(d) Public Comment.--An opportunity for public comment shall be
    provided, as appropriate--
                ``(1) by the Trade Representative, in making the
            determination required by subsection (b), and
                ``(2) by the administering authority and the Commission, in
            making the determination required by subsection (c).
        ``(e) Issuance of Order.--If the administering authority makes an
    affirmative determination under paragraph (1) of subsection (c), and
    the Commission makes an affirmative determination under paragraph (2)
    of subsection (c), the administering authority shall issue an
    antidumping duty order in accordance with section 736 and take such
    other actions as are required by section 736.
        ``(f) Reviews of Determinations.--For purposes of review under
    section 516A or review under section 751, if an order is issued under
    subsection (d), the final determinations of the administering authority
    and the Commission under this section shall be treated as final
    determinations made under section 735.
        ``(g) Access to Information.--Section 777 shall apply to
    investigations under this section, to the extent specified by the Trade
    Representative, after consultation with the administering authority and
    the Commission.''.
        (b) Conforming Amendment.--The table of contents for title VII, as
    amended by section 231(d)(2), is amended by adding after the item
    relating to section 782 the following new item:

    ``Sec. 783. Antidumping petitions by third countries.''.

    SEC. 233. CONFORMING AMENDMENTS.

        (a) Terminology.--
                (1) Normal value.--Each of the following sections is
            amended by striking ``foreign market value'' each place it
            appears in the text and in the heading and inserting ``normal
            value'':
                        (A) Section 731 (19 U.S.C. 1673).
                        (B) Section 734 (19 U.S.C. 1673c).
                        (C) Section 736 (19 U.S.C. 1673e).
                        (D) Section 739 (19 U.S.C. 1673h).
                        (E) Section 780 (19 U.S.C. 1677i).
                (2) Export price.--
                        (A) In general.--Each of the following sections is
                    amended by striking ``United States price'' each place
                    it appears in the text and in the heading and inserting
                    ``export price (or the constructed export price)'':
                                (i) Section 731 (19 U.S.C. 1673).
                                (ii) Section 734 (19 U.S.C. 1673c).
                                (iii) Section 736 (19 U.S.C. 1673e).
                                (iv) Section 738 (19 U.S.C. 1673g).
                                (v) Section 739 (19 U.S.C. 1673h).
                                (vi) Section 780 (19 U.S.C. 1677i).
                        (B) Exporter's sales price.--Section 738(b)(3) (19
                    U.S.C. 1673g(b)(3)) is amended by striking ``exporter's
                    sales price'' and inserting ``constructed export
                    price''.
                (3) Domestic like product.--
                        (A) Each of the following sections is amended by
                    striking ``like product'' each place it appears in the
                    text and in the heading and inserting ``domestic like
                    product'':
                                (i) Section 771(4)(C) and (D) (19 U.S.C.
                            1677(4)(C) and (D)).
                                (ii) Section 771(7)(C)(iii)(IV) (19 U.S.C.
                            1677(7)(C)(iii)(IV)).
                                (iii) Section 771(9) (19 U.S.C. 1677(9)).
                                (iv) Section 771(10) (19 U.S.C. 1677(10)).
                        (B) Sections 771(7)(B)(i)(II) and (III) and section
                    771(7)(C)(ii)(I) (19 U.S.C. 1677(7)(B)(i)(II) and (III)
                    and (C)(ii)(I)) are amended by striking ``like
                    products'' and inserting ``domestic like products''.
                (4) Foreign like product.--Section 771(16) (19 U.S.C.
            1677(16)) is amended--
                        (A) by striking ``such or similar merchandise'' in
                    the text and inserting ``foreign like product'', and
                        (B) by amending the heading to read as follows:
                    ``Foreign like product.''.
                (5) Subject merchandise.--
                        (A) Section 701(d) (19 U.S.C. 1671(d)) is amended
                    by striking ``a class or kind of merchandise subject to
                    a countervailing duty investigation'' and inserting
                    ``subject merchandise''.
                        (B) Section 702(e) (19 U.S.C. 1671a(e)) is amended
                    by striking ``class or kind of merchandise that is the
                    subject of the investigation'' each place it appears
                    and inserting ``subject merchandise''.
                        (C) Section 703(b)(1) (19 U.S.C. 1671b(b)(1)) is
                    amended by striking ``merchandise which is the subject
                    of the investigation'' and inserting ``subject
                    merchandise''.
                        (D) Section 704(a)(2)(A) (19 U.S.C. 1671c(a)(2)(A))
                    is amended by striking ``merchandise that is subject to
                    the investigation'' and inserting ``subject
                    merchandise''.
                        (E) Section 704(b) (19 U.S.C. 1671c(b)) is amended
                    by striking ``merchandise which is the subject of the
                    investigation'' and inserting ``subject merchandise''.
                        (F) Section 704(c)(1) (19 U.S.C. 1671c(c)(1)) is
                    amended by striking ``merchandise which is the subject
                    of the investigation'' and inserting ``subject
                    merchandise''.
                        (G) Section 704(c)(2) (19 U.S.C. 1671c(c)(2)) is
                    amended by striking ``merchandise which is the subject
                    of the investigation'' and inserting ``subject
                    merchandise''.
                        (H) Section 704(c)(3) (19 U.S.C. 1671c(c)(3)) is
                    amended by striking ``merchandise which is the subject
                    of an investigation'' and inserting ``subject
                    merchandise''.
                        (I) Section 704(d)(3) (19 U.S.C. 1671c(d)(3)) is
                    amended by striking ``merchandise covered by such
                    agreement'' and inserting ``subject merchandise''.
                        (J) Section 704(f)(1)(A) (19 U.S.C. 1671c(f)(1)(A))
                    is amended by striking ``merchandise which is the
                    subject of the investigation'' and inserting ``subject
                    merchandise''.
                        (K) Subparagraphs (A)(i) and (B) of section
                    704(f)(2) (19 U.S.C. 1671c(f)(2)(A)(i) and (B)) are
                    amended by striking ``merchandise which is the subject
                    of the investigation'' each place it appears and
                    inserting ``subject merchandise''.
                        (L) Paragraphs (2) and (3) of section 704(h) (19
                    U.S.C. 1671c(h) (2) and (3)) are amended by striking
                    ``merchandise which is the subject of the
                    investigation'' each place it appears and inserting
                    ``subject merchandise''.
                        (M) Section 704(j) (19 U.S.C. 1671c(j)) is amended
                    by striking ``merchandise which is the subject of the
                    investigation'' and inserting ``subject merchandise''.
                        (N) Section 705(a)(1) (19 U.S.C. 1671d(a)(1)) is
                    amended by striking ``the merchandise'' and inserting
                    ``the subject merchandise''.
                        (O) Section 706(a)(2) (19 U.S.C. 1671e(a)(2)), as
                    redesignated by section 265, is amended by striking
                    ``class or kind of merchandise to which it applies''
                    and inserting ``subject merchandise''.
                        (P) Section 732(e)(1) (19 U.S.C. 1673a(e)(1)) is
                    amended by striking ``class or kind of the merchandise
                    which is the subject of the investigation'' and
                    inserting ``the subject merchandise''.
                        (Q) Section 732(e)(2) (19 U.S.C. 1673a(e)(2)) is
                    amended by striking ``merchandise which is the subject
                    of the investigation'' and inserting ``subject
                    merchandise''.
                        (R) Section 732(e) (19 U.S.C. 1673a(e)) is amended
                    by striking ``class or kind of merchandise that is the
                    subject of the investigation'' each place it appears
                    and inserting ``subject merchandise''.
                        (S) Section 734(a)(2)(A) (19 U.S.C 1673c(a)(2)(A))
                    is amended by striking ``merchandise that is subject to
                    the investigation'' and inserting ``subject
                    merchandise''.
                        (T) Subsections (b), (c)(1), (f)(1)(A),
                    (f)(2)(A)(i), (g)(1), (h)(2), (h)(3), and (j) of
                    section 734 (19 U.S.C 1673c(b), (c)(1), (f)(1)(A),
                    (f)(2)(A)(i), (g)(1), (h)(2), (h)(3), and (j)) are
                    amended by striking ``merchandise which is the subject
                    of the investigation'' each place it appears and
                    inserting ``subject merchandise''.
                        (U) Section 734(f)(2)(B) (19 U.S.C. 1673c(f)(2)(B))
                    is amended by striking ``merchandise subject to the
                    investigation'' and inserting ``subject merchandise''.
                        (V) Section 735(a)(1) (19 U.S.C. 1673d(a)(1)) is
                    amended by striking ``merchandise which was the subject
                    of the investigation'' and inserting ``subject
                    merchandise''.
                        (W) Section 736(a)(2) (19 U.S.C. 1673e(a)(2)) is
                    amended by striking ``class or kind of merchandise to
                    which it applies'' and inserting ``subject
                    merchandise''.
                        (X) Section 736(b)(1) (19 U.S.C. 1673e(b)(1)) is
                    amended by striking ``merchandise subject to the
                    antidumping duty order'' and inserting ``subject
                    merchandise''.
                        (Y) Section 736(b)(2) (19 U.S.C. 1673e(b)(2)) is
                    amended by striking ``merchandise subject to an
                    antidumping duty order'' and inserting ``subject
                    merchandise''.
                        (Z) Section 762(a)(1) (19 U.S.C. 1676a(a)(1)) is
                    amended by striking ``merchandise subject to the
                    agreement'' and inserting ``subject merchandise''.
                        (AA) Section 762(b)(2) (19 U.S.C. 1676a(b)(2)) is
                    amended by striking ``merchandise subject to the
                    order'' and inserting ``subject merchandise''.
                        (BB) Section 771(7)(B)(i)(I) (19 U.S.C.
                    1677(7)(B)(i)(I)) is amended by striking ``merchandise
                    which is the subject of the investigation'' and
                    inserting ``subject merchandise''.
                        (CC) Section 771(9)(A) (19 U.S.C. 1677(9)(A)) is
                    amended by striking ``merchandise which is the subject
                    of an investigation under this title'' and inserting
                    ``subject merchandise''.
                        (DD) Section 771(16)(A) (19 U.S.C. 1677(16)(A)) is
                    amended by striking ``merchandise which is the subject
                    of an investigation'' and inserting ``subject
                    merchandise''.
                        (EE) Section 771(16)(B)(i) (19 U.S.C.
                    1677(16)(B)(i)) is amended by striking ``merchandise
                    which is the subject of an investigation'' and
                    inserting ``subject merchandise''.
                        (FF) Section 771(17) (19 U.S.C. 1677(17)) is
                    amended by striking ``merchandise which is the subject
                    of the investigation'' and inserting ``subject
                    merchandise''.
                        (GG) Section 771A(c) (19 U.S.C. 1677-1(c)) is
                    amended by striking ``merchandise under investigation''
                    and inserting ``subject merchandise''.
                (6) Initiate.--(A) Each of the following sections is
            amended by striking ``commenced'' and inserting ``initiated'':
                        (i) Section 702(a).
                        (ii) Section 702(b)(1).
                        (iii) Section 703(b)(1).
                        (iv) Section 703(c)(1).
                        (v) Section 732(a)(1).
                        (vi) Section 732(a)(2)(D).
                        (vii) Section 732(b)(1).
                        (viii) Section 733(b)(1)(A) and (B).
                        (ix) Section 733(b)(2).
                        (x) Section 733(c)(1).
                (B) Sections 703(g)(1) and 733(b)(2) are each amended by
            striking ``commencement'' and inserting ``initiation''.
                (C) Section 732(a)(2)(B) is amended by striking
            ``commence'' and inserting ``initiate''.
                (7) Technical amendments.--The table of contents for title
            VII is amended--
                        (A) by amending the item relating to section 772 to
                    read as follows:

    ``Sec. 772. Export price and constructed export price.'';

                        (B) by striking ``Foreign market value'' in the
                    item relating to section 773 and inserting ``Normal
                    value'', and
                        (C) by inserting after the item relating to section
                    708 the following new item:

    ``Sec. 709. Conditional payment of countervailing duty.''.

        (b) Other Conforming Amendments.--
                (1) WTO member.--Section 771(7)(F)(iii) (19 U.S.C.
            1677(7)(F)(iii)) is amended--
                        (A) in subclause (I), by striking ``GATT member''
                    and inserting ``WTO member''; and
                        (B) in subclause (II)--
                                (i) in the subclause heading, by striking
                            ``GATT member'' and inserting ``WTO member'';
                                (ii) by striking ``GATT member'' and
                            inserting ``WTO member''; and
                                (iii) by striking ``signatory'' and all
                            that follows through ``measures)'' and
                            inserting ``WTO member''.
                (2) Administering authority.--Section 771(1) (19 U.S.C.
            1677(1)) is amended by striking ``the Treasury'' and inserting
            ``Commerce''.

    SEC. 234. APPLICATION TO CANADA AND MEXICO.

        Pursuant to article 1902 of the North American Free Trade Agreement
    and section 408 of the North American Free Trade Agreement
    Implementation Act, the amendments made by this title shall apply with
    respect to goods from Canada and Mexico.

                        Subtitle B--Subsidies Provisions

                       PART 1--COUNTERVAILABLE SUBSIDIES

    SEC. 251. COUNTERVAILABLE SUBSIDY.

        (a) In General.--Section 771 (19 U.S.C. 1677) is amended by
    striking paragraph (5) and inserting the following:
                ``(5) Countervailable subsidy.--
                        ``(A) In general.--Except as provided in paragraph
                    (5B), a countervailable subsidy is a subsidy described
                    in this paragraph which is specific as described in
                    paragraph (5A).
                        ``(B) Subsidy described.--A subsidy is described in
                    this paragraph in the case in which an authority--
                                ``(i) provides a financial contribution,
                                ``(ii) provides any form of income or price
                            support within the meaning of Article XVI of
                            the GATT 1994, or
                                ``(iii) makes a payment to a funding
                            mechanism to provide a financial contribution,
                            or entrusts or directs a private entity to make
                            a financial contribution, if providing the
                            contribution would normally be vested in the
                            government and the practice does not differ in
                            substance from practices normally followed by
                            governments,
                    to a person and a benefit is thereby conferred. For
                    purposes of this paragraph and paragraphs (5A) and
                    (5B), the term `authority' means a government of a
                    country or any public entity within the territory of
                    the country.
                        ``(C) Other factors.--The determination of whether
                    a subsidy exists shall be made without regard to
                    whether the recipient of the subsidy is publicly or
                    privately owned and without regard to whether the
                    subsidy is provided directly or indirectly on the
                    manufacture, production, or export of merchandise. The
                    administering authority is not required to consider the
                    effect of the subsidy in determining whether a subsidy
                    exists under this paragraph.
                        ``(D) Financial contribution.--The term `financial
                    contribution' means--
                                ``(i) the direct transfer of funds, such as
                            grants, loans, and equity infusions, or the
                            potential direct transfer of funds or
                            liabilities, such as loan guarantees,
                                ``(ii) foregoing or not collecting revenue
                            that is otherwise due, such as granting tax
                            credits or deductions from taxable income,
                                ``(iii) providing goods or services, other
                            than general infrastructure, or
                                ``(iv) purchasing goods.
                        ``(E) Benefit conferred.--A benefit shall normally
                    be treated as conferred where there is a benefit to the
                    recipient, including--
                                ``(i) in the case of an equity infusion, if
                            the investment decision is inconsistent with
                            the usual investment practice of private
                            investors, including the practice regarding the
                            provision of risk capital, in the country in
                            which the equity infusion is made,
                                ``(ii) in the case of a loan, if there is a
                            difference between the amount the recipient of
                            the loan pays on the loan and the amount the
                            recipient would pay on a comparable commercial
                            loan that the recipient could actually obtain
                            on the market,
                                ``(iii) in the case of a loan guarantee, if
                            there is a difference, after adjusting for any
                            difference in guarantee fees, between the
                            amount the recipient of the guarantee pays on
                            the guaranteed loan and the amount the
                            recipient would pay for a comparable commercial
                            loan if there were no guarantee by the
                            authority, and
                                ``(iv) in the case where goods or services
                            are provided, if such goods or services are
                            provided for less than adequate remuneration,
                            and in the case where goods are purchased, if
                            such goods are purchased for more than adequate
                            remuneration.
                    For purposes of clause (iv), the adequacy of
                    remuneration shall be determined in relation to
                    prevailing market conditions for the good or service
                    being provided or the goods being purchased in the
                    country which is subject to the investigation or
                    review. Prevailing market conditions include price,
                    quality, availability, marketability, transportation,
                    and other conditions of purchase or sale.
                        ``(F) Change in ownership.--A change in ownership
                    of all or part of a foreign enterprise or the
                    productive assets of a foreign enterprise does not by
                    itself require a determination by the administering
                    authority that a past countervailable subsidy received
                    by the enterprise no longer continues to be
                    countervailable, even if the change in ownership is
                    accomplished through an arm's length transaction.
                ``(5A) Specificity.--
                        ``(A) In general.--A subsidy is specific if it is
                    an export subsidy described in subparagraph (B) or an
                    import substitution subsidy described in subparagraph
                    (C), or if it is determined to be specific pursuant to
                    subparagraph (D).
                        ``(B) Export subsidy.--An export subsidy is a
                    subsidy that is, in law or in fact, contingent upon
                    export performance, alone or as 1 of 2 or more
                    conditions.
                        ``(C) Import substitution subsidy.--An import
                    substitution subsidy is a subsidy that is contingent
                    upon the use of domestic goods over imported goods,
                    alone or as 1 of 2 or more conditions.
                        ``(D) Domestic subsidy.--In determining whether a
                    subsidy (other than a subsidy described in subparagraph
                    (B) or (C)) is a specific subsidy, in law or in fact,
                    to an enterprise or industry within the jurisdiction of
                    the authority providing the subsidy, the following
                    guidelines shall apply:
                                ``(i) Where the authority providing the
                            subsidy, or the legislation pursuant to which
                            the authority operates, expressly limits access
                            to the subsidy to an enterprise or industry,
                            the subsidy is specific as a matter of law.
                                ``(ii) Where the authority providing the
                            subsidy, or the legislation pursuant to which
                            the authority operates, establishes objective
                            criteria or conditions governing the
                            eligibility for, and the amount of, a subsidy,
                            the subsidy is not specific as a matter of law,
                            if--
                                        ``(I) eligibility is automatic,
                                        ``(II) the criteria or conditions
                                    for eligibility are strictly followed,
                                    and
                                        ``(III) the criteria or conditions
                                    are clearly set forth in the relevant
                                    statute, regulation, or other official
                                    document so as to be capable of
                                    verification.
                            For purposes of this clause, the term
                            `objective criteria or conditions' means
                            criteria or conditions that are neutral and
                            that do not favor one enterprise or industry
                            over another.
                                ``(iii) Where there are reasons to believe
                            that a subsidy may be specific as a matter of
                            fact, the subsidy is specific if one or more of
                            the following factors exist:
                                        ``(I) The actual recipients of the
                                    subsidy, whether considered on an
                                    enterprise or industry basis, are
                                    limited in number.
                                        ``(II) An enterprise or industry is
                                    a predominant user of the subsidy.
                                        ``(III) An enterprise or industry
                                    receives a disproportionately large
                                    amount of the subsidy.
                                        ``(IV) The manner in which the
                                    authority providing the subsidy has
                                    exercised discretion in the decision to
                                    grant the subsidy indicates that an
                                    enterprise or industry is favored over
                                    others.
                            In evaluating the factors set forth in
                            subclauses (I), (II), (III), and (IV), the
                            administering authority shall take into account
                            the extent of diversification of economic
                            activities within the jurisdiction of the
                            authority providing the subsidy, and the length
                            of time during which the subsidy program has
                            been in operation.
                                ``(iv) Where a subsidy is limited to an
                            enterprise or industry located within a
                            designated geographical region within the
                            jurisdiction of the authority providing the
                            subsidy, the subsidy is specific.
            For purposes of this paragraph and paragraph (5B), any
            reference to an enterprise or industry is a reference to a
            foreign enterprise or foreign industry and includes a group of
            such enterprises or industries.
                ``(5B) Categories of noncountervailable subsidies.--
                        ``(A) In general.--Notwithstanding the provisions
                    of paragraphs (5) and (5A), in the case of merchandise
                    imported from a Subsidies Agreement country, a subsidy
                    shall be treated as noncountervailable if the
                    administering authority determines in an investigation
                    under subtitle A or a review under subtitle C that the
                    subsidy meets all of the criteria described in
                    subparagraph (B), (C), or (D), as the case may be, or
                    the provisions of subparagraph (E)(i) apply.
                        ``(B) Research subsidy.--
                                ``(i) In general.--Except for a subsidy
                            provided on the manufacture, production, or
                            export of civil aircraft, a subsidy for
                            research activities conducted by a person, or
                            by a higher education or research establishment
                            on a contract basis with a person, shall be
                            treated as noncountervailable, if the subsidy
                            covers not more than 75 percent of the costs of
                            industrial research or not more than 50 percent
                            of the costs of precompetitive development
                            activity, and such subsidy is limited
                            exclusively to--
                                        ``(I) the costs of researchers,
                                    technicians, and other supporting staff
                                    employed exclusively in the research
                                    activity,
                                        ``(II) the costs of instruments,
                                    equipment, land, or buildings that are
                                    used exclusively and permanently
                                    (except when disposed of on a
                                    commercial basis) for the research
                                    activity,
                                        ``(III) the costs of consultancy
                                    and equivalent services used
                                    exclusively for the research activity,
                                    including costs for bought-in research,
                                    technical knowledge, and patents,
                                        ``(IV) additional overhead costs
                                    incurred directly as a result of the
                                    research activity, and
                                        ``(V) other operating costs (such
                                    as materials and supplies) incurred
                                    directly as a result of the research
                                    activity.
                                ``(ii) Definitions.--For purposes of this
                            subparagraph--
                                        ``(I) Industrial research.--The
                                    term `industrial research' means
                                    planned search or critical
                                    investigation aimed at the discovery of
                                    new knowledge, with the objective that
                                    such knowledge may be useful in
                                    developing new products, processes, or
                                    services, or in bringing about a
                                    significant improvement to existing
                                    products, processes, or services.
                                        ``(II) Precompetitive development
                                    activity.--The term `precompetitive
                                    development activity' means the
                                    translation of industrial research
                                    findings into a plan, blueprint, or
                                    design for new, modified, or improved
                                    products, processes, or services,
                                    whether intended for sale or use,
                                    including the creation of a first
                                    prototype that would not be capable of
                                    commercial use. The term also may
                                    include the conceptual formulation and
                                    design of products, processes, or
                                    services alternatives and initial
                                    demonstration or pilot projects, if
                                    these same projects cannot be converted
                                    or used for industrial application or
                                    commercial exploitation. The term does
                                    not include routine or periodic
                                    alterations to existing products,
                                    production lines, manufacturing
                                    processes, services, or other ongoing
                                    operations even if those alterations
                                    may represent improvements.
                                ``(iii) Calculation rules.--
                                        ``(I) In general.--In the case of a
                                    research activity that spans both
                                    industrial research and precompetitive
                                    development activity, the allowable
                                    level of the noncountervailable subsidy
                                    shall not exceed 62.5 percent of the
                                    costs set forth in subclauses (I),
                                    (II), (III), (IV), and (V) of clause
                                    (i).
                                        ``(II) Total eligible costs.--The
                                    allowable level of a noncountervailable
                                    subsidy described in clause (i) shall
                                    be based on the total eligible costs
                                    incurred over the duration of a
                                    particular project.
                        ``(C) Subsidy to disadvantaged regions.--
                                ``(i) In general.--A subsidy provided,
                            pursuant to a general framework of regional
                            development, to a person located in a
                            disadvantaged region within a country shall be
                            treated as noncountervailable, if it is not
                            specific (within the meaning of paragraph (5A))
                            within eligible regions and if the following
                            conditions are met:
                                        ``(I) Each region identified as
                                    disadvantaged within the territory of a
                                    country is a clearly designated,
                                    contiguous geographical area with a
                                    definable economic and administrative
                                    identity.
                                        ``(II) Each region is considered a
                                    disadvantaged region on the basis of
                                    neutral and objective criteria
                                    indicating that the region is
                                    disadvantaged because of more than
                                    temporary circumstances, and such
                                    criteria are clearly stated in the
                                    relevant statute, regulation, or other
                                    official document so as to be capable
                                    of verification.
                                        ``(III) The criteria described in
                                    subclause (II) include a measurement of
                                    economic development.
                                        ``(IV) Programs provided within a
                                    general framework of regional
                                    development include ceilings on the
                                    amount of assistance that can be
                                    granted to a subsidized project. Such
                                    ceilings are differentiated according
                                    to the different levels of development
                                    of assisted regions, and are expressed
                                    in terms of investment costs or costs
                                    of job creation. Within such ceilings,
                                    the distribution of assistance is
                                    sufficiently broad and even to avoid
                                    the predominant use of a subsidy by, or
                                    the provision of disproportionately
                                    large amounts of a subsidy to, an
                                    enterprise or industry as described in
                                    paragraph (5A)(D).
                                ``(ii) Measurement of economic
                            development.--For purposes of clause (i), the
                            measurement of economic development shall be
                            based on one or more of the following factors:
                                        ``(I) Per capita income, household
                                    per capita income, or per capita gross
                                    domestic product that does not exceed
                                    85 percent of the average for the
                                    country subject to investigation or
                                    review.
                                        ``(II) An unemployment rate that is
                                    at least 110 percent of the average
                                    unemployment rate for the country
                                    subject to investigation or review.
                            The measurement of economic development shall
                            cover a 3-year period, but may be a composite
                            measurement and may include factors other than
                            those set forth in this clause.
                                ``(iii) Definitions.--For purposes of this
                            subparagraph--
                                        ``(I) General framework of regional
                                    development.--The term `general
                                    framework of regional development'
                                    means that the regional subsidy
                                    programs are part of an internally
                                    consistent and generally applicable
                                    regional development policy, and that
                                    regional development subsidies are not
                                    granted in isolated geographical points
                                    having no, or virtually no, influence
                                    on the development of a region.
                                        ``(II) Neutral and objective
                                    criteria.--The term `neutral and
                                    objective criteria' means criteria that
                                    do not favor certain regions beyond
                                    what is appropriate for the elimination
                                    or reduction of regional disparities
                                    within the framework of the regional
                                    development policy.
                        ``(D) Subsidy for adaptation of existing facilities
                    to new environmental requirements.--
                                ``(i) In general.--A subsidy that is
                            provided to promote the adaptation of existing
                            facilities to new environmental requirements
                            that are imposed by statute or by regulation,
                            and that result in greater constraints and
                            financial burdens on the recipient of the
                            subsidy, shall be treated as
                            noncountervailable, if the subsidy--
                                        ``(I) is a one-time nonrecurring
                                    measure,
                                        ``(II) is limited to 20 percent of
                                    the cost of adaptation,
                                        ``(III) does not cover the cost of
                                    replacing and operating the subsidized
                                    investment, a cost that must be fully
                                    borne by the recipient,
                                        ``(IV) is directly linked and
                                    proportionate to the recipient's
                                    planned reduction of nuisances and
                                    pollution, and does not cover any
                                    manufacturing cost savings that may be
                                    achieved, and
                                        ``(V) is available to all persons
                                    that can adopt the new equipment or
                                    production processes.
                                ``(ii) Existing facilities.--For purposes
                            of this subparagraph, the term `existing
                            facilities' means facilities that have been in
                            operation for at least 2 years before the date
                            on which the new environmental requirements are
                            imposed.
                        ``(E) Notified subsidy program.--
                                ``(i) General rule.--If a subsidy is
                            provided pursuant to a program that has been
                            notified in accordance with Article 8.3 of the
                            Subsidies Agreement, the subsidy shall be
                            treated as noncountervailable and shall not be
                            subject to investigation or review under this
                            title.
                                ``(ii) Exception.--Notwithstanding clause
                            (i), a subsidy shall be treated as
                            countervailable if--
                                        ``(I) the Trade Representative
                                    notifies the administering authority
                                    that a determination has been made
                                    pursuant to Article 8.4 or 8.5 of the
                                    Subsidies Agreement that the subsidy,
                                    or the program pursuant to which the
                                    subsidy was provided, does not satisfy
                                    the conditions and criteria of Article
                                    8.2 of the Subsidies Agreement; and
                                        ``(II) the subsidy is specific
                                    within the meaning of paragraph (5A).
                        ``(F) Certain subsidies on agricultural products.--
                    Domestic support measures that are provided with
                    respect to products listed in Annex 1 to the Agreement
                    on Agriculture, and that the administering authority
                    determines conform fully to the provisions of Annex 2
                    to that Agreement, shall be treated as
                    noncountervailable. Upon request by the administering
                    authority, the Trade Representative shall provide
                    advice regarding the interpretation and application of
                    Annex 2.
                        ``(G) Provisional application.--
                                ``(i) Subparagraphs (B), (C), (D), and (E)
                            shall not apply on or after the first day of
                            the month that is 66 months after the WTO
                            Agreement enters into force, unless the
                            provisions of such subparagraphs are extended
                            pursuant to section 282(c) of the Uruguay Round
                            Agreements Act.
                                ``(ii) Subparagraph (F) shall not apply to
                            imports from a WTO member country at the end of
                            the 9-year period beginning on January 1, 1995.
                            The Trade Representative shall determine the
                            precise termination date for each WTO member
                            country in accordance with paragraph (i) of
                            Article 1 of the Agreement on Agriculture and
                            such date shall be notified to the
                            administering authority.''.
        (b) Net Countervailable Subsidy.--Section 771(6) (19 U.S.C.
    1677(6)) is amended by inserting ``countervailable'' before ``subsidy''
    each place it appears in the text and in the heading.

            PART 2--REPEAL OF SECTION 303 AND CONFORMING AMENDMENTS

    SEC. 261. REPEAL OF SECTION 303.

        (a) In General.--Section 303 of the Tariff Act of 1930 (19 U.S.C.
    1303) is repealed effective on the effective date of this title.
        (b) Savings Provisions.--
                (1) Continuing effect of legal documents.--All orders,
            determinations, and other administrative actions--
                        (A) which have been issued pursuant to an
                    investigation conducted under section 303 of the Tariff
                    Act of 1930, and
                        (B) which are in effect on the effective date of
                    this title, or were final before such date and are to
                    become effective on or after such date,
            shall continue in effect according to their terms until
            modified, terminated, superseded, set aside, or revoked in
            accordance with law by the administering authority, the
            International Trade Commission, or a court of competent
            jurisdiction, or by operation of law. Except as provided in
            paragraph (3), such orders or determinations shall be subject
            to review under section 751 of the Tariff Act of 1930 and, to
            the extent applicable, investigation under section 753 of such
            Act (as added by this title).
                (2) Proceedings not affected.--The provisions of subsection
            (a) shall not affect any proceedings, including notices of
            proposed rulemaking, pending before the administering authority
            or the International Trade Commission on the effective date of
            this title with respect to such section 303. Orders shall be
            issued in such proceedings, appeals shall be taken therefrom,
            and payments shall be made pursuant to such orders, in
            accordance with such section 303 as in effect on the day before
            the effective date of this title and, except as provided in
            paragraph (3), shall be subject to review under section 751 of
            the Tariff Act of 1930 and, to the extent applicable,
            investigation under section 753 of such Act. Orders issued in
            any such proceedings shall continue in effect until modified,
            terminated, superseded, set aside, or revoked in accordance
            with law by the administering authority, a court of competent
            jurisdiction, or by operation of law. Nothing in this section
            shall be deemed to prohibit the discontinuance or modification
            of any such proceeding under the same terms and conditions and
            to the same extent that such proceeding could have been
            discontinued or modified if this section had not been enacted.
                (3) Suits not affected.--The provisions of subsection (a)
            shall not affect the review pursuant to section 516A of the
            Tariff Act of 1930 of a countervailing duty order issued
            pursuant to an investigation conducted under section 303 of
            such Act or a review of a countervailing duty order issued
            under section 751 of such Act, if such review is pending or the
            time for filing such review has not expired on the effective
            date of this title.
        (c) Definition of Administering Authority.--For purposes of this
    section, the term ``administering authority'' has the meaning given
    such term by section 771(1) of the Tariff Act of 1930.
        (d) Conforming Amendments.--
                (1) In general.--
                        (A) Amendments to trade act of 1974.--
                                (i) Section 331(d)(3) of the Trade Act of
                            1974 (19 U.S.C. 1303 note) is repealed.
                                (ii) Section 152(a)(2) of the Trade Act of
                            1974 (19 U.S.C. 2192(a)(2)) is amended by
                            striking ``(A) in the case of'' and all that
                            follows through ``(B)''.
                                (iii) Section 154(a) of the Trade Act of
                            1974 (19 U.S.C. 2194(a)) is amended by striking
                            ``or section 303(e) of the Tariff Act of
                            1930,''.
                        (B) Amendments to tariff act of 1930.--The
                    following sections of the Tariff Act of 1930 are
                    amended:
                                (i) Section 315(d) (19 U.S.C. 1315(d)) is
                            amended by inserting ``(as in effect on the day
                            before the effective date of title II of the
                            Uruguay Round Agreements Act) or section 701''
                            after ``section 303''.
                                (ii) Section 337(b)(3) (19 U.S.C.
                            1337(b)(3)) is amended--
                                        (I) by striking ``of section 303 or
                                    subtitle B of title VII of the Tariff
                                    Act of 1930'' and inserting ``of
                                    subtitle B of title VII of this Act'',
                                        (II) by striking ``section 303,
                                    671, or 673'' and inserting ``section
                                    701 or 731'',
                                        (III) by striking ``section 303,
                                    701,'' and inserting ``section 701'',
                                        (IV) by striking ``of the Secretary
                                    under section 303 of this Act or'', and
                                        (V) by striking ``matter within
                                    such section 303, 701, or'' and
                                    inserting ``matter within such section
                                    701 or''.
                                (iii) Section 701 (19 U.S.C. 1671) is
                            amended by striking subsection (f).
                                (iv) Section 780(c)(1) (19 U.S.C.
                            1677i(c)(1)) is amended by striking ``, 732(a),
                            or 303'' and inserting ``or 732(a)''.
                        (C) Other references.--Any reference to section 303
                    in any other Federal law, Executive order, rule, or
                    regulation shall be treated as a reference to section
                    303 of the Tariff Act of 1930 as in effect on the day
                    before the effective date of title II of this Act.
                (2) Effective date.--The amendments made by this subsection
            shall take effect on the effective date of this title.

    SEC. 262. IMPOSITION OF COUNTERVAILING DUTIES.

        Section 701 (a), (b), and (c) (19 U.S.C. 1671 (a), (b), and (c))
    are amended to read as follows:
        ``(a) General Rule.--If--
                ``(1) the administering authority determines that the
            government of a country or any public entity within the
            territory of a country is providing, directly or indirectly, a
            countervailable subsidy with respect to the manufacture,
            production, or export of a class or kind of merchandise
            imported, or sold (or likely to be sold) for importation, into
            the United States, and
                ``(2) in the case of merchandise imported from a Subsidies
            Agreement country, the Commission determines that--
                        ``(A) an industry in the United States--
                                ``(i) is materially injured, or
                                ``(ii) is threatened with material injury,
                            or
                        ``(B) the establishment of an industry in the
                    United States is materially retarded,
            by reason of imports of that merchandise or by reason of sales
            (or the likelihood of sales) of that merchandise for
            importation,
    then there shall be imposed upon such merchandise a countervailing
    duty, in addition to any other duty imposed, equal to the amount of the
    net countervailable subsidy. For purposes of this subsection and
    section 705(b)(1), a reference to the sale of merchandise includes the
    entering into of any leasing arrangement regarding the merchandise that
    is equivalent to the sale of the merchandise.
        ``(b) Subsidies Agreement Country.--For purposes of this title, the
    term `Subsidies Agreement country' means--
                ``(1) a WTO member country,
                ``(2) a country which the President has determined has
            assumed obligations with respect to the United States which are
            substantially equivalent to the obligations under the Subsidies
            Agreement, or
                ``(3) a country with respect to which the President
            determines that--
                        ``(A) there is an agreement in effect between the
                    United States and that country which--
                                ``(i) was in force on the date of the
                            enactment of the Uruguay Round Agreements Act,
                            and
                                ``(ii) requires unconditional most-favored-
                            nation treatment with respect to articles
                            imported into the United States, and
                        ``(B) the agreement described in subparagraph (A)
                    does not expressly permit--
                                ``(i) actions required or permitted by the
                            GATT 1947 or GATT 1994, as defined in section
                            2(1) of the Uruguay Round Agreements Act, or
                            required by the Congress, or
                                ``(ii) nondiscriminatory prohibitions or
                            restrictions on importation which are designed
                            to prevent deceptive or unfair practices.
        ``(c) Countervailing Duty Investigations Involving Imports Not
    Entitled to a Material Injury Determination.--In the case of any
    article or merchandise imported from a country which is not a Subsidies
    Agreement country--
                ``(1) no determination by the Commission under section
            703(a), 704, or 705(b) shall be required,
                ``(2) an investigation may not be suspended under section
            704(c) or 704(l),
                ``(3) no determination as to the presence of critical
            circumstances shall be made under section 703(e) or 705(a)(2),
                ``(4) section 706(c) shall not apply,
                ``(5) any reference to a determination described in
            paragraph (1) or (3), or to the suspension of an investigation
            under section 704(c) or 704(l), shall be disregarded, and
                ``(6) section 751(c) shall not apply.''.

    SEC. 263. DE MINIMIS COUNTERVAILABLE SUBSIDY.

        (a) Preliminary Determinations.--Section 703(b) (19 U.S.C.
    1671b(b)) is amended by adding at the end the following new paragraph:
                ``(4) De minimis countervailable subsidy.--
                        ``(A) General rule.--In making a determination
                    under this subsection, the administering authority
                    shall disregard any de minimis countervailable subsidy.
                    For purposes of the preceding sentence, a
                    countervailable subsidy is de minimis if the
                    administering authority determines that the aggregate
                    of the net countervailable subsidies is less than 1
                    percent ad valorem or the equivalent specific rate for
                    the subject merchandise.
                        ``(B) Exception for developing countries.--In the
                    case of subject merchandise imported from a Subsidies
                    Agreement country (other than a country to which
                    subparagraph (C) applies) designated by the Trade
                    Representative as a developing country in accordance
                    with section 771(36), a countervailable subsidy is de
                    minimis if the administering authority determines that
                    the aggregate of the net countervailable subsidies does
                    not exceed 2 percent ad valorem or the equivalent
                    specific rate for the subject merchandise.
                        ``(C) Certain other developing countries.--In the
                    case of subject merchandise imported from a Subsidies
                    Agreement country that is--
                                ``(i) a least developed country, as
                            determined by the Trade Representative in
                            accordance with section 771(36), or
                                ``(ii) a developing country with respect to
                            which the Trade Representative has notified the
                            administering authority that the country has
                            eliminated its export subsidies on an expedited
                            basis within the meaning of Article 27.11 of
                            the Subsidies Agreement,
                    subparagraph (B) shall be applied by substituting `3
                    percent' for `2 percent'.
                        ``(D) Limitations on application of subparagraph
                    (c).--
                                ``(i) In general.--In the case of a country
                            described in subparagraph (C)(i), the
                            provisions of subparagraph (C) shall not apply
                            after the date that is 8 years after the date
                            the WTO Agreement enters into force.
                                ``(ii) Special rule for subparagraph
                            (C)(ii) countries.--In the case of a country
                            described in subparagraph (C)(ii), the
                            provisions of subparagraph (C) shall not apply
                            after the earlier of--
                                        ``(I) the date that is 8 years
                                    after the date the WTO Agreement enters
                                    into force, or
                                        ``(II) the date on which the Trade
                                    Representative notifies the
                                    administering authority that such
                                    country is providing an export
                                    subsidy.''.
        (b) Final Determinations.--Section 705(a) (19 U.S.C. 1671d(a)) is
    amended by adding at the end the following new paragraph:
                ``(3) De minimis countervailable subsidy.--In making a
            determination under this subsection, the administering
            authority shall disregard any countervailable subsidy that is
            de minimis as defined in section 703(b)(4).''.

    SEC. 264. DETERMINATION OF COUNTERVAILABLE SUBSIDY RATE.

        (a) Preliminary Determination.--Section 703(d) (19 U.S.C. 1673b(d))
    is amended--
                (1) by striking paragraph (2);
                (2) by redesignating paragraph (1), as amended by section
            215(a)(1), as paragraph (2);
                (3) by inserting ``and'' at the end of paragraph (2), as so
            redesignated; and
                (4) by inserting before such paragraph (2) the following
            new paragraph:
                ``(1)(A) shall--
                        ``(i) determine an estimated individual
                    countervailable subsidy rate for each exporter and
                    producer individually investigated, and, in accordance
                    with section 705(c)(5), an estimated all-others rate
                    for all exporters and producers not individually
                    investigated and for new exporters and producers within
                    the meaning of section 751(a)(2)(B), or
                        ``(ii) if section 777A(e)(2)(B) applies, determine
                    a single estimated country-wide subsidy rate,
                    applicable to all exporters and producers, and
                ``(B) shall order the posting of a cash deposit, bond, or
            other security, as the administering authority deems
            appropriate, for each entry of the subject merchandise in an
            amount based on the estimated individual countervailable
            subsidy rate, the estimated all-others rate, or the estimated
            country-wide subsidy rate, whichever is applicable,''.
        (b) Final Determination.--
                (1) In general.--Section 705(c)(1) (19 U.S.C. 1671d(c)(1))
            is amended--
                        (A) in subparagraph (B)--
                                (i) by redesignating such subparagraph as
                            subparagraph (C); and
                                (ii) by striking ``under paragraphs (1) and
                            (2)'' and all that follows through ``security''
                            and inserting ``the suspension of liquidation
                            under paragraph (2) of section 703(d)'';
                        (B) by striking ``and'' at the end of subparagraph
                    (A); and
                        (C) by inserting after subparagraph (A) the
                    following new subparagraph:
                        ``(B)(i) the administering authority shall--
                                ``(I) determine an estimated individual
                            countervailable subsidy rate for each exporter
                            and producer individually investigated, and, in
                            accordance with paragraph (5), an estimated
                            all-others rate for all exporters and producers
                            not individually investigated and for new
                            exporters and producers within the meaning of
                            section 751(a)(2)(B), or
                                ``(II) if 777A(e)(2)(B) applies, determine
                            a single estimated country-wide subsidy rate,
                            applicable to all exporters and producers,
                        ``(ii) shall order the posting of a cash deposit,
                    bond, or other security, as the administering authority
                    deems appropriate, for each entry of the subject
                    merchandise in an amount based on the estimated
                    individual countervailable subsidy rate, the estimated
                    all-others rate, or the estimated country-wide subsidy
                    rate, whichever is applicable, and''.
                (2) Method for determining countervailable subsidy rate.--
            Section 705(c) (19 U.S.C. 1671d(c)) is amended by adding at the
            end the following new paragraph:
                ``(5) Method for determining the all-others rate and the
            country-wide subsidy rate.--
                        ``(A) All-others rate.--
                                ``(i) General rule.--For purposes of this
                            subsection and section 703(d), the all-others
                            rate shall be an amount equal to the weighted
                            average countervailable subsidy rates
                            established for exporters and producers
                            individually investigated, excluding any zero
                            and de minimis countervailable subsidy rates,
                            and any rates determined entirely under section
                            776.
                                ``(ii) Exception.--If the countervailable
                            subsidy rates established for all exporters and
                            producers individually investigated are zero or
                            de minimis rates, or are determined entirely
                            under section 776, the administering authority
                            may use any reasonable method to establish an
                            all-others rate for exporters and producers not
                            individually investigated, including averaging
                            the weighted average countervailable subsidy
                            rates determined for the exporters and
                            producers individually investigated.
                        ``(B) Country-wide subsidy rate.--The administering
                    authority may calculate a single country-wide subsidy
                    rate, applicable to all exporters and producers, if the
                    administering authority limits its examination pursuant
                    to section 777A(e)(2)(B). The estimated country-wide
                    rate determined under section 703(d)(1)(A)(ii) or
                    paragraph (1)(B)(i)(II) of this subsection shall be
                    based on industry-wide data regarding the use of
                    subsidies determined to be countervailable.''.
        (c) Technical and Conforming Amendments.--
                (1) Section 703(b)(2) is amended--
                        (A) by striking ``subsection (b)(1)'' and inserting
                    ``paragraph (1)'',
                        (B) by striking ``subsection 702(b)(3)'' and
                    inserting ``section 702(b)(3)'',
                        (C) by striking ``subsection 703(b)(1)'' and
                    inserting ``paragraph (1)'', and
                        (D) by striking ``section 703(c)'' and inserting
                    ``subsection (c) of this section''.
                (2) Section 703(e)(2) is amended by striking ``subsection
            (d)(1)'' and inserting ``subsection (d)(2)''.
                (3) Section 704(f)(2)(A) is amended--
                        (A) in clause (i), by striking ``section
                    703(d)(1)'' and inserting ``section 703(d)(2)''; and
                        (B) in clause (iii), by striking ``section
                    703(d)(1)'' and inserting ``section 703(d)(1)(B)''.
                (4) Section 704(f)(2)(B) is amended--
                        (A) by striking ``section 703(d)(1)'' and inserting
                    ``section 703(d)(2)''; and
                        (B) by striking ``section 703(d)(2)'' and inserting
                    ``section 703(d)(1)(B)''.
                (5) Section 704(h)(3) is amended--
                        (A) in subparagraph (A), by striking ``section
                    703(d)(1)'' and inserting ``section 703(d)(2)''; and
                        (B) in subparagraph (B), by striking ``section
                    703(d)(2)'' and inserting ``section 703(d)(1)(B)''.
                (6) Section 704(i)(1)(A) is amended by striking ``section
            703(d)(1)'' and inserting ``section 703(d)(2)''.
                (7) Section 705(c)(2) is amended--
                        (A) in subparagraph (A), by striking ``section
                    703(d)(1)'' and inserting ``section 703(d)(2)''; and
                        (B) in subparagraph (B), by striking ``section
                    703(d)(2)'' and inserting ``section 703(d)(1)(B)''.
                (8) Section 705(c)(3)(B) is amended by striking ``section
            703(d)(2)'' and inserting ``section 703(d)(1)(B)''.
                (9) Section 706(b)(1) is amended by striking ``section
            703(d)(1)'' each place it appears and inserting ``section
            703(d)(2)''.
                (10) Section 707(a) is amended--
                        (A) by striking ``section 703(d)(2)'' and inserting
                    ``section 703(d)(1)(B)'', and
                        (B) by striking ``Section 703(d)(2)'' in the
                    heading and inserting ``Section 703(d)(1)(B)''.
                (11) Section 708 is amended by striking ``section
            703(d)(2)'' and inserting ``section 703(d)(1)(B)''.

    SEC. 265. ASSESSMENT OF COUNTERVAILING DUTY.

        Section 706(a) (19 U.S.C. 1671e(a)) is amended--
                (1) by striking paragraph (2); and
                (2) by redesignating paragraphs (3) and (4) as paragraphs
            (2) and (3), respectively.

    SEC. 266. NATURE OF COUNTERVAILABLE SUBSIDY.

        Section 771(7)(E)(i) (19 U.S.C. 1677(7)(E)(i)) is amended to read
    as follows:
                                ``(i) Nature of countervailable subsidy.--
                            In determining whether there is a threat of
                            material injury, the Commission shall consider
                            information provided to it by the administering
                            authority regarding the nature of the
                            countervailable subsidy granted by a foreign
                            country (particularly whether the
                            countervailable subsidy is a subsidy described
                            in Article 3 or 6.1 of the Subsidies Agreement)
                            and the effects likely to be caused by the
                            countervailable subsidy.''.

    SEC. 267. DEFINITION OF DEVELOPING AND LEAST-DEVELOPED COUNTRY.

        Section 771 (19 U.S.C. 1677), as amended, is amended by adding at
    the end the following new paragraph:
                ``(36) Developing and least developed country.--
                        ``(A) Developing country.--The term `developing
                    country' means a country designated as a developing
                    country by the Trade Representative.
                        ``(B) Least developed country.--The term `least
                    developed country' means a country which the Trade
                    Representative determines is--
                                ``(i) a country referred to as a least
                            developed country within the meaning of
                            paragraph (a) of Annex VII to the Subsidies
                            Agreement, or
                                ``(ii) any other country listed in Annex
                            VII to the Subsidies Agreement, but only if the
                            country has a per capita gross national product
                            of less than $1,000 per annum as measured by
                            the most recent data available from the World
                            Bank.
                        ``(C) Publication of list.--The Trade
                    Representative shall publish in the Federal Register,
                    and update as necessary, a list of--
                                ``(i) developing countries that have
                            eliminated their export subsidies on an
                            expedited basis within the meaning of Article
                            27.11 of the Subsidies Agreement, and
                                ``(ii) countries determined by the Trade
                            Representative to be least developed or
                            developing countries.
                        ``(D) Factors to consider.--In determining whether
                    a country is a developing country under subparagraph
                    (A), the Trade Representative shall consider such
                    economic, trade, and other factors which the Trade
                    Representative considers appropriate, including the
                    level of economic development of such country (the
                    assessment of which shall include a review of the
                    country's per capita gross national product) and the
                    country's share of world trade.
                        ``(E) Limitation on designation.--A determination
                    that a country is a developing or least developed
                    country pursuant to this paragraph shall be for
                    purposes of this title only and shall not affect the
                    determination of a country's status as a developing or
                    least developed country with respect to any other
                    law.''.

    SEC. 268. UPSTREAM SUBSIDIES.

        Section 771A(a) (19 U.S.C. 1677-1(a)) is amended--
                (1) by striking the matter preceding paragraph (1) and
            paragraph (1) and inserting the following:
        ``(a) Definition.--The term `upstream subsidy' means any
    countervailable subsidy, other than an export subsidy, that--
                ``(1) is paid or bestowed by an authority (as defined in
            section 771(5)) with respect to a product (hereafter in this
            section referred to as an `input product') that is used in the
            same country as the authority in the manufacture or production
            of merchandise which is the subject of a countervailing duty
            proceeding;'', and
                (2) in the flush sentence at the end thereof, by inserting
            ``countervailable'' before ``subsidy''.

    SEC. 269. SAMPLING AND AVERAGING; DETERMINATION OF COUNTERVAILABLE
                  SUBSIDY RATE.

        (a) In General.--Section 777A (19 U.S.C. 1677f-1), as amended by
    section 229, is amended by adding at the end the following new
    subsection:
        ``(e) Determination of Countervailable Subsidy Rate.--
                ``(1) General rule.--In determining countervailable subsidy
            rates under section 703(d), 705(c), or 751(a), the
            administering authority shall determine an individual
            countervailable subsidy rate for each known exporter or
            producer of the subject merchandise.
                ``(2) Exception.--If the administering authority determines
            that it is not practicable to determine individual
            countervailable subsidy rates under paragraph (1) because of
            the large number of exporters or producers involved in the
            investigation or review, the administering authority may--
                        ``(A) determine individual countervailable subsidy
                    rates for a reasonable number of exporters or producers
                    by limiting its examination to--
                                ``(i) a sample of exporters or producers
                            that the administering authority determines is
                            statistically valid based on the information
                            available to the administering authority at the
                            time of selection, or
                                ``(ii) exporters and producers accounting
                            for the largest volume of the subject
                            merchandise from the exporting country that the
                            administering authority determines can be
                            reasonably examined; or
                        ``(B) determine a single country-wide subsidy rate
                    to be applied to all exporters and producers.
            The individual countervailable subsidy rates determined under
            subparagraph (A) shall be used to determine the all-others rate
            under section 705(c)(5).''.
        (b) Conforming Amendments.--
                (1) The heading for section 777A, as amended by section
            229, is amended by inserting ``AND COUNTERVAILABLE SUBSIDY
            RATE'' after ``MARGIN''.
                (2) The table of contents for title VII is amended by
            inserting ``; determination of weighted average dumping margin
            and countervailable subsidy rate'' after ``averaging'' in the
            item relating to section 777A.

    SEC. 270. CONFORMING AMENDMENTS.

        (a) Countervailable Subsidy.--
                (1) Except as provided in paragraph (2), each of the
            following sections is amended by striking ``subsidy'' each
            place it appears in the text and in the heading and inserting
            ``countervailable subsidy'':
                        (A) Section 702(e) (19 U.S.C. 1671a(e)).
                        (B) Section 703(b)(1) (19 U.S.C. 1671b(b)(1)).
                        (C) Section 703(b)(2) (19 U.S.C. 1671b(b)(2)).
                        (D) Section 703(c)(1)(B)(i)(I) (19 U.S.C.
                    1671b(c)(1)(B)(i)(I)).
                        (E) Section 704 (19 U.S.C. 1671c).
                        (F) Section 705(a)(1) (19 U.S.C. 1671d(a)(1)).
                        (G) Section 705(a)(2) (19 U.S.C. 1671d(a)(2)).
                        (H) Section 706(a)(1) (19 U.S.C. 1671e(a)(1)).
                        (I) Section 761 (19 U.S.C. 1676).
                        (J) Section 762 (19 U.S.C. 1676a).
                        (K) Section 771A(b) (19 U.S.C. 1677-1(b)).
                        (L) Section 771A(c) (19 U.S.C. 1677-1(c)).
                        (M) Section 780(d)(1)(A)(ii) (19 U.S.C.
                    1677i(d)(1)(A)(ii)).
                        (N) Section 516A(a)(2)(B)(iv) (19 U.S.C.
                    1516a(a)(2)(B)(iv)).
                (2)(A) The heading for section 704(b) (19 U.S.C. 1671c(b))
            is amended by striking ``Subsidy'' and inserting
            ``Countervailable Subsidy''.
                (B) The heading for section 771A(c) (19 U.S.C. 1677-1(c))
            is amended by striking ``Subsidy'' and inserting
            ``Countervailable Subsidy''.
        (b) Countervailable Subsidies.--
                (1) Except as provided in paragraph (2), each of the
            following sections is amended by striking ``subsidies'' each
            place it appears in the text and in the heading and inserting
            ``countervailable subsidies'':
                        (A) Section 701(d) (19 U.S.C. 1671(d)).
                        (B) Section 703(c)(1)(B)(i)(III) (19 U.S.C.
                    1671b(c)(1)(B)(i)(III)).
                        (C) Section 761 (19 U.S.C. 1676).
                        (D) Section 771B (19 U.S.C. 1677-2).
                (2) The heading for section 761(a) and section 771B (19
            U.S.C. 1676(a) and 1677-2) are each amended by striking
            ``Subsidies'' and inserting ``Countervailable Subsidies''.
        (c) Other Conforming Amendments.--
                (1) The heading for section 704(b) (19 U.S.C. 1671c(b)) is
            amended by striking ``Subsidized Merchandise'' and inserting
            ``Subject Merchandise''.
                (2) Subparagraphs (C) and (D) of section 771(4) (19 U.S.C.
            1677(4) (C) and (D)) are amended by striking ``subsidized or''
            each place it appears and inserting ``or imports of merchandise
            benefiting from a countervailable subsidy'' after ``imports''.
                (3) Section 771A (19 U.S.C. 1677-1), as amended, is amended
            in subsection (c), by striking ``subsidization'' and inserting
            ``the countervailable subsidy''.
                (4) The table of contents for title VII is amended--
                        (A) in the item relating to section 771B, by
                    inserting ``countervailable'' before ``subsidies'', and
                        (B) in the item relating to section 775, by
                    striking ``Subsidy'' and inserting ``Countervailable
                    subsidy''.
        (d) Subsidies Agreement.--Section 702(e) (19 U.S.C. 1671a(e)) is
    amended by striking ``Agreement'' and inserting ``Subsidies
    Agreement''.
        (e) Subsidies Agreement and Agreement on Agriculture.--Section
    771(8) (19 U.S.C. 1677(8)) is amended to read as follows:
                ``(8) Subsidies agreement; agreement on agriculture.--
                        ``(A) Subsidies agreement.--The term `Subsidies
                    Agreement' means the Agreement on Subsidies and
                    Countervailing Measures referred to in section
                    101(d)(12) of the Uruguay Round Agreements Act.
                        ``(B) Agreement on agriculture.--The term
                    `Agreement on Agriculture' means the Agreement on
                    Agriculture referred to in section 101(d)(2) of the
                    Uruguay Round Agreements Act.''.

                   PART 3--SECTION 303 INJURY INVESTIGATIONS

    SEC. 271. SPECIAL RULES FOR INJURY INVESTIGATIONS FOR CERTAIN SECTION
                  303 COUNTERVAILING DUTY ORDERS AND INVESTIGATIONS.

        (a) In General.--Chapter 1 of subtitle C of title VII, as amended,
    is amended by inserting after section 752 the following new section:

    ``SEC. 753. SPECIAL RULES FOR INJURY INVESTIGATIONS FOR CERTAIN SECTION
                  303 COUNTERVAILING DUTY ORDERS AND INVESTIGATIONS.

        ``(a) In General.--
                ``(1) Investigation by the commission upon request.--In the
            case of a countervailing duty order described in paragraph (2),
            which--
                        ``(A) applies to merchandise that is the product of
                    a Subsidies Agreement country, and
                        ``(B)(i) is in effect on the date on which such
                    country becomes a Subsidies Agreement country, or
                        ``(ii) is issued on a date that is after the date
                    described in clause (i) pursuant to a court order in an
                    action brought under section 516A,
            the Commission, upon receipt of a request from an interested
            party described in section 771(9) (C), (D), (E), (F), or (G)
            for an injury investigation with respect to such order, shall
            initiate an investigation and shall determine whether an
            industry in the United States is likely to be materially
            injured by reason of imports of the subject merchandise if the
            order is revoked.
                ``(2) Description of countervailing duty orders.--A
            countervailing duty order described in this paragraph is an
            order issued under section 303 with respect to which the
            requirement of an affirmative determination of material injury
            under section 303(a)(2) was not applicable at the time such
            order was issued.
                ``(3) Requirements of request for investigation.--A request
            for an investigation under this subsection shall be submitted--
                        ``(A) in the case of an order described in
                    paragraph (1)(B)(i), within 6 months after the date on
                    which the country described in paragraph (1)(A) becomes
                    a Subsidies Agreement country, or
                        ``(B) in the case of an order described in
                    paragraph (1)(B)(ii), within 6 months after the date
                    the order is issued.
                ``(4) Suspension of liquidation.--With respect to entries
            of subject merchandise made on or after--
                        ``(A) in the case of an order described in
                    paragraph (1)(B)(i), the date on which the country
                    described in paragraph (1)(A) becomes a Subsidies
                    Agreement country, or
                        ``(B) in the case of an order described in
                    paragraph (1)(B)(ii), the date on which the order is
                    issued,
            liquidation shall be suspended at the cash deposit rate in
            effect on the date described in subparagraph (A) or (B)
            (whichever is applicable).
        ``(b) Investigation Procedure and Schedule.--
                ``(1) Commission procedure.--
                        ``(A) In general.--Except as otherwise provided in
                    this section, the provisions of this title regarding
                    evidence in and procedures for investigations conducted
                    under subtitle A shall apply to investigations
                    conducted by the Commission under this section.
                        ``(B) Time for commission determination.--Except as
                    otherwise provided in subparagraph (C), the Commission
                    shall issue its determination under subsection (a)(1),
                    to the extent possible, not later than 1 year after the
                    date on which the investigation is initiated under this
                    section.
                        ``(C) Special rule to permit administrative
                    flexibility.--In the case of requests for
                    investigations received under this section within 1
                    year after the date on which the WTO Agreement enters
                    into force with respect to the United States, the
                    Commission may, after consulting with the administering
                    authority, initiate its investigations in a manner that
                    results in determinations being made in all such
                    investigations during the 4-year period beginning on
                    such date.
                ``(2) Net countervailable subsidy; nature of subsidy.--
                        ``(A) Net countervailable subsidy.--The
                    administering authority shall provide to the Commission
                    the net countervailable subsidy that is likely to
                    prevail if the order which is the subject of the
                    investigation is revoked. The administering authority
                    normally shall choose a net countervailable subsidy
                    that was determined under section 705 or subsection (a)
                    or (b)(1) of section 751. If the Commission considers
                    the magnitude of the net countervailable subsidy in
                    making its determination under this section, the
                    Commission shall use the net countervailable subsidy
                    provided by the administering authority.
                        ``(B) Nature of subsidy.--The administering
                    authority shall inform the Commission of, and the
                    Commission, in making its determination under this
                    section, shall consider, the nature of the
                    countervailable subsidy and whether the countervailable
                    subsidy is a subsidy described in Article 3 or Article
                    6.1 of the Subsidies Agreement.
                ``(3) Effect of commission determination.--
                        ``(A) Affirmative determination.--Upon being
                    notified by the Commission that it has made an
                    affirmative determination under subsection (a)(1)--
                                ``(i) the administering authority shall
                            order the termination of the suspension of
                            liquidation required pursuant to subsection
                            (a)(4), and
                                ``(ii) the countervailing duty order shall
                            remain in effect until revoked, in whole or in
                            part, under section 751(d).
                    For purposes of section 751(c), a countervailing duty
                    order described in this section shall be treated as
                    issued on the date of publication of the Commission's
                    determination under this subsection.
                        ``(B) Negative determination.--
                                ``(i) In general.--Upon being notified by
                            the Commission that it has made a negative
                            determination under subsection (a)(1), the
                            administering authority shall revoke the
                            countervailing duty order, and shall refund,
                            with interest, any estimated countervailing
                            duties collected during the period liquidation
                            was suspended pursuant to subsection (a)(4).
                                ``(ii) Limitation on negative
                            determination.--A determination by the
                            Commission that revocation of the order is not
                            likely to result in material injury to an
                            industry by reason of imports of the subject
                            merchandise shall not be based, in whole or in
                            part, on any export taxes, duties, or other
                            charges levied on the export of the subject
                            merchandise to the United States that were
                            specifically intended to offset the
                            countervailable subsidy received.
                ``(4) Countervailing duty orders with respect to which no
            request for injury investigation is made.--If, with respect to
            a countervailing duty order described in subsection (a), a
            request for an investigation is not made within the time
            required by subsection (a)(3), the Commission shall notify the
            administering authority that a negative determination has been
            made under subsection (a) and the provisions of paragraph
            (3)(B) shall apply with respect to the order.
        ``(c) Pending and Suspended Countervailing Duty Investigations.--
    If, on the date on which a country becomes a Subsidies Agreement
    country, there is a countervailing duty investigation in progress or
    suspended under section 303 that applies to merchandise which is a
    product of that country and with respect to which the requirement of an
    affirmative determination of material injury under section 303(a)(2)
    was not applicable at the time the investigation was initiated, the
    Commission shall--
                ``(1) in the case of an investigation in progress, make a
            final determination under section 705(b) within 75 days after
            the date of an affirmative final determination, if any, by the
            administering authority,
                ``(2) in the case of a suspended investigation to which
            section 704(i)(1)(B) applies, make a final determination under
            section 705(b) within 120 days after receiving notice from the
            administering authority of the resumption of the investigation
            pursuant to section 704(i), or within 45 days after the date of
            an affirmative final determination, if any, by the
            administering authority, whichever is later, or
                ``(3) in the case of a suspended investigation to which
            section 704(i)(1)(C) applies, treat the countervailing duty
            order issued pursuant to such section as if it were--
                        ``(A) an order issued under subsection
                    (a)(1)(B)(ii) for purposes of subsection (a)(3); and
                        ``(B) an order issued under subsection (a)(1)(B)(i)
                    for purposes of subsection (a)(4).
        ``(d) Publication in Federal Register.--The administering authority
    or the Commission, as the case may be, shall publish in the Federal
    Register a notice of the initiation of any investigation, and a notice
    of any determination or revocation, made pursuant to this section.
        ``(e) Request for Simultaneous Expedited Review Under Section
    751(c).--
                ``(1) General rule.--
                        ``(A) Requests for reviews.--Notwithstanding
                    section 751(c)(6)(A) and except as provided in
                    subparagraph (B), an interested party may request a
                    review of an order under section 751(c) at the same
                    time the party requests an investigation under
                    subsection (a), if the order involves the same or
                    comparable subject merchandise. Upon receipt of such
                    request, the administering authority, after consulting
                    with the Commission, shall initiate a review of the
                    order under section 751(c). The Commission shall
                    combine such review with the investigation under this
                    section.
                        ``(B) Exception.--If the administering authority
                    determines that the interested party who requested an
                    investigation under this section is a related party or
                    an importer within the meaning of section 771(4)(B),
                    the administering authority may decline a request by
                    such party to initiate a review of an order under
                    section 751(c) which involves the same or comparable
                    subject merchandise.
                ``(2) Cumulation.--If a review under section 751(c) is
            initiated under paragraph (1), such review shall be treated as
            having been initiated on the same day as the investigation
            under this section, and the Commission may, in accordance with
            section 771(7)(G), cumulatively assess the volume and effect of
            imports of the subject merchandise from all countries with
            respect to which such investigations are treated as initiated
            on the same day.
                ``(3)  Time and procedure for commission determination.--
            The Commission shall render its determination in the
            investigation conducted under this section at the same time as
            the Commission's determination is made in the review under
            section 751(c) that is initiated pursuant to this subsection.
            The Commission shall in all other respects apply the procedures
            and standards set forth in section 751(c) to such section
            751(c) reviews.''.
        (b) Review of Determinations.--Section 516A(a)(2) (19 U.S.C.
    1516a(a)(2)) is amended--
                (1) in subparagraph (A)(i)(I), by striking ``or (v)'' and
            inserting ``(v), or (viii)'', and
                (2) in subparagraph (B), by adding at the end the
            following:
                                ``(viii) A determination by the Commission
                            under section 753(a)(1).''.
        (c) Conforming Amendment.--The table of contents for title VII, as
    amended, is amended by inserting after the item relating to section 752
    the following new item:

    ``Sec. 753. Special rules for injury investigations for certain section
                                303 countervailing duty orders and
                                investigations.''.

        PART 4--ENFORCEMENT OF UNITED STATES RIGHTS UNDER THE SUBSIDIES
                                   AGREEMENT

    SEC. 281. SUBSIDIES ENFORCEMENT.

        (a) Assistance Regarding Multilateral Subsidy Remedies.--The
    administering authority shall provide information to the public upon
    request, and, to the extent feasible, assistance and advice to
    interested parties concerning--
                (1) remedies and benefits available under relevant
            provisions of the Subsidies Agreement, and
                (2) the procedures relating to such remedies and benefits.
        (b) Prohibited Subsidies.--
                (1) Notification of trade representative.--If the
            administering authority determines pursuant to title VII of the
            Tariff Act of 1930 that a class or kind of merchandise is
            benefiting from a subsidy which is prohibited under Article 3
            of the Subsidies Agreement, the administering authority shall
            notify the Trade Representative and shall provide the Trade
            Representative with the information upon which the
            administering authority based its determination.
                (2) Request by interested party regarding prohibited
            subsidy.--An interested party may request that the
            administering authority determine if there is reason to believe
            that merchandise produced in a WTO member country is benefiting
            from a subsidy which is prohibited under Article 3 of the
            Subsidies Agreement. The request shall contain such information
            as the administering authority may require to support the
            allegations contained in the request. If the administering
            authority, after analyzing the request and other information
            reasonably available to the administering authority, determines
            that there is reason to believe that such merchandise is
            benefiting from a subsidy which is prohibited under Article 3
            of the Subsidies Agreement, the administering authority shall
            so notify the Trade Representative, and shall include
            supporting information with the notification.
        (c) Subsidies Actionable Under the Agreement.--
                (1) In general.--If the administering authority determines
            pursuant to title VII of the Tariff Act of 1930 that a class or
            kind of merchandise is benefiting from a subsidy described in
            Article 6.1 of the Subsidies Agreement, the administering
            authority shall notify the Trade Representative, and shall
            provide the Trade Representative with the information upon
            which the administering authority based its determination.
                (2) Request by interested party regarding adverse
            effects.--An interested party may request the administering
            authority to determine if there is reason to believe that a
            subsidy which is actionable under the Subsidies Agreement is
            causing adverse effects. The request shall contain such
            information as the administering authority may require to
            support the allegations contained in the request. At the
            request of the administering authority, the Commission shall
            assist the administering authority in analyzing the information
            pertaining to the existence of such adverse effects. If the
            administering authority, after analyzing the request and other
            information reasonably available to the administering
            authority, determines that there is reason to believe that a
            subsidy which is actionable under the Subsidies Agreement is
            causing adverse effects, the administering authority shall so
            notify the Trade Representative, and shall include supporting
            information with the notification.
        (d) Initiation of Section 301 Investigation.--On the basis of the
    notification and information provided by the administering authority
    pursuant to subsection (b) or (c), such other information as the Trade
    Representative may have or obtain, and where applicable, after
    consultation with an interested party referred to in subsection (b)(2)
    or (c)(2), the Trade Representative shall, unless such interested party
    objects, determine as expeditiously as possible, in accordance with the
    procedures in section 302(b)(1) of the Trade Act of 1974 (19 U.S.C.
    2412(b)(1)), whether to initiate an investigation pursuant to title III
    of that Act (19 U.S.C. 2411 et seq.). At the request of the Trade
    Representative, the administering authority and the Commission shall
    assist the Trade Representative in an investigation initiated pursuant
    to this subsection.
        (e) Nonactionable Subsidies.--
                (1) Compliance with article 8 of the subsidies agreement.--
                        (A) Monitoring.--In order to monitor whether a
                    subsidy meets the conditions and criteria described in
                    Article 8.2 of the Subsidies Agreement and is
                    nonactionable, the Trade Representative shall provide
                    the administering authority on a timely basis with any
                    information submitted or report made pursuant to
                    Article 8.3 or 8.4 of the Subsidies Agreement regarding
                    a notified subsidy program. The administering authority
                    shall review such information and reports, and where
                    appropriate, shall recommend to the Trade
                    Representative that the Trade Representative seek
                    pursuant to Article 8.3 or 8.4 of the Subsidies
                    Agreement additional information regarding the notified
                    subsidy program or a subsidy granted pursuant to the
                    notified subsidy program. If the administering
                    authority has reason to believe that a violation of
                    Article 8 of the Subsidies Agreement exists, the
                    administering authority shall so notify the Trade
                    Representative, and shall include supporting
                    information with the notification.
                        (B) Request by interested party regarding violation
                    of article 8.--An interested party may request the
                    administering authority to determine if there is reason
                    to believe that a violation of Article 8 of the
                    Subsidies Agreement exists. The request shall contain
                    such information as the administering authority may
                    require to support the allegations contained in the
                    request. If the administering authority, after
                    analyzing the request and other information reasonably
                    available to the administering authority, determines
                    that additional information is needed, the
                    administering authority shall recommend to the Trade
                    Representative that the Trade Representative seek,
                    pursuant to Article 8.3 or 8.4 of the Subsidies
                    Agreement, additional information regarding the
                    particular notified subsidy program or a subsidy
                    granted pursuant to the notified subsidy program. If
                    the administering authority determines that there is
                    reason to believe that a violation of Article 8 of the
                    Subsidies Agreement exists, the administering authority
                    shall so notify the Trade Representative, and shall
                    include supporting information with the notification.
                        (C) Action by trade representative.--
                                (i) If the Trade Representative, on the
                            basis of the notification and information
                            provided by the administering authority
                            pursuant to subparagraph (A) or (B), and such
                            other information as the Trade Representative
                            may have or obtain, and after consulting with
                            the interested party referred to in
                            subparagraph (B) and appropriate domestic
                            industries, determines that there is reason to
                            believe that a violation of Article 8 of the
                            Subsidies Agreement exists, the Trade
                            Representative shall invoke the procedures of
                            Article 8.4 or 8.5 of the Subsidies Agreement.
                                (ii) For purposes of clause (i), the Trade
                            Representative shall determine that there is
                            reason to believe that a violation of Article 8
                            exists in any case in which the Trade
                            Representative determines that a notified
                            subsidy program or a subsidy granted pursuant
                            to a notified subsidy program does not satisfy
                            the conditions and criteria required for a
                            nonactionable subsidy program under this Act,
                            the Subsidies Agreement, and the statement of
                            administrative action approved under section
                            101(a).
                        (D) Notification of administering authority.--The
                    Trade Representative shall notify the administering
                    authority whenever a violation of Article 8 of the
                    Subsidies Agreement has been found to exist pursuant to
                    Article 8.4 or 8.5 of that Agreement.
                (2) Serious adverse effects.--
                        (A) Request by interested party.--An interested
                    party may request the administering authority to
                    determine if there is reason to believe that serious
                    adverse effects resulting from a program referred to in
                    Article 8.2 of the Subsidies Agreement exist. The
                    request shall contain such information as the
                    administering authority may require to support the
                    allegations contained in the request.
                        (B) Action by administering authority.--Within 90
                    days after receipt of the request described in
                    subparagraph (A), the administering authority, after
                    analyzing the request and other information reasonably
                    available to the administering authority, shall
                    determine if there is reason to believe that serious
                    adverse effects resulting from a program referred to in
                    Article 8.2 of the Subsidies Agreement exist. If the
                    determination of the administering authority is
                    affirmative, it shall so notify the Trade
                    Representative and shall include supporting information
                    with the notification. The Commission shall assist the
                    administering authority in analyzing the information
                    pertaining to the existence of such serious adverse
                    effects if the administering authority requests the
                    Commission's assistance. If the subsidy program that is
                    alleged to result in serious adverse effects has been
                    the subject of a countervailing duty investigation or
                    review under subtitle A or C of title VII of the Tariff
                    Act of 1930, the administering authority shall take
                    into account the determinations made by the
                    administering authority and the Commission in such
                    investigation or review and the administering authority
                    shall complete its analysis as expeditiously as
                    possible.
                        (C) Action by trade representative.--The Trade
                    Representative, on the basis of the notification and
                    information provided by the administering authority
                    pursuant to subparagraph (B), and such other
                    information as the Trade Representative may have or
                    obtain, shall determine as expeditiously as possible,
                    but not later than 30 days after receipt of the
                    notification provided by the administering authority,
                    if there is reason to believe that serious adverse
                    effects exist resulting from the subsidy program which
                    is the subject of the administering authority's
                    notification. The Trade Representative shall make an
                    affirmative determination regarding the existence of
                    such serious adverse effects unless the Trade
                    Representative finds that the notification of the
                    administering authority is not supported by the facts.
                        (D) Consultations.--If the Trade Representative
                    determines that there is reason to believe that serious
                    adverse effects resulting from the subsidy program
                    exist, the Trade Representative, unless the interested
                    party referred to in subparagraph (A) objects, shall
                    invoke the procedures of Article 9 of the Subsidies
                    Agreement, and shall request consultations pursuant to
                    Article 9.2 of the Subsidies Agreement with respect to
                    such serious adverse effects. If such consultations
                    have not resulted in a mutually acceptable solution
                    within 60 days after the request is made for such
                    consultations, the Trade Representative shall refer the
                    matter to the Subsidies Committee pursuant to Article
                    9.3 of the Subsidies Agreement.
                        (E) Determination by subsidies committee.--If the
                    Trade Representative determines that--
                                (i) the Subsidies Committee has been
                            prevented from making an affirmative
                            determination regarding the existence of
                            serious adverse effects under Article 9 of the
                            Subsidies Agreement by reason of the refusal of
                            the WTO member country with respect to which
                            the consultations have been invoked to join in
                            an affirmative consensus--
                                        (I) that such serious adverse
                                    effects exist, or
                                        (II) regarding a recommendation to
                                    such WTO member country to modify the
                                    subsidy program in such a way as to
                                    remove the serious adverse effects, or
                                (ii) the Subsidies Committee has not
                            presented its conclusions regarding the
                            existence of such serious adverse effects
                            within 120 days after the date the matter was
                            referred to it, as required by Article 9.4 of
                            the Subsidies Agreement,
                    the Trade Representative shall, within 30 days after
                    such determination, make a determination under section
                    304(a)(1) of the Trade Act of 1974 (19 U.S.C.
                    2414(a)(1)) regarding what action to take under section
                    301(a)(1)(A) of that Act.
                        (F) Noncompliance with committee recommendation.--
                    In the event that the Subsidies Committee makes a
                    recommendation under Article 9.4 of the Subsidies
                    Agreement and the WTO member country with respect to
                    which such recommendation is made does not comply with
                    such recommendation within 6 months after the date of
                    the recommendation, the Trade Representative shall make
                    a determination under section 304(a)(1) of the Trade
                    Act of 1974 (19 U.S.C. 2414(a)(1)) regarding what
                    action to take under section 301(a) of that Act.
        (f) Notification, Consultation, and Publication.--
                (1) Notification of congress.--The Trade Representative
            shall submit promptly to the Committee on Ways and Means of the
            House of Representatives, the Committee on Finance of the
            Senate, and other appropriate committees of the Congress any
            information submitted or report made pursuant to Article 8.3 or
            8.4 of the Subsidies Agreement regarding a notified subsidy
            program.
                (2) Publication in the federal register.--The administering
            authority shall publish regularly in the Federal Register a
            summary notice of any information submitted or report made
            pursuant to Article 8.3 or 8.4 of the Subsidies Agreement
            regarding notified subsidy programs.
                (3) Consultations with congress and private sector.--The
            Trade Representative and the administering authority promptly
            shall consult with the committees referred to in paragraph (1),
            and with interested representatives of the private sector,
            regarding all information submitted or reports made pursuant to
            Article 8.3 or 8.4 of the Subsidies Agreement regarding a
            notified subsidy program.
                (4) Annual report.--Not later than February 1 of each year
            beginning in 1996, the Trade Representative and the
            administering authority shall issue a joint report to the
            Congress detailing--
                        (A) the subsidies practices of major trading
                    partners of the United States, including subsidies that
                    are prohibited, are causing serious prejudice, or are
                    nonactionable, under the Subsidies Agreement, and
                        (B) the monitoring and enforcement activities of
                    the Trade Representative and the administering
                    authority during the preceding calendar year which
                    relate to subsidies practices.
        (g) Cooperation of Other Agencies.--All agencies, departments, and
    independent agencies of the Federal Government shall cooperate fully
    with one another in carrying out the provisions of this section, and,
    upon the request of the administering authority, shall furnish to the
    administering authority all records, papers, and information in their
    possession which relate to the requirements of this section.
        (h) Definitions.--For purposes of this section:
                (1) Adverse effects.--The term ``adverse effects'' has the
            meaning given that term in Articles 5(a) and 5(c) of the
            Subsidies Agreement.
                (2) Administering authority.--The term ``administering
            authority'' has the meaning given that term in section 771(1)
            of the Tariff Act of 1930 (19 U.S.C. 1677(1)).
                (3) Commission.--The term ``Commission'' means the United
            States International Trade Commission.
                (4) Interested party.--The term ``interested party'' means
            a party described in subparagraph (C), (D), (E), (F), or (G) of
            section 771(9) of the Tariff Act of 1930 (19 U.S.C. 1677(9)
            (A), (C), (D), (E), (F), or (G)).
                (5) Nonactionable subsidy.--The term ``nonactionable
            subsidy'' means a subsidy described in Article 8.1(b) of the
            Subsidies Agreement.
                (6) Notified subsidy program.--The term ``notified subsidy
            program'' means a subsidy program which has been notified
            pursuant to Article 8.3 of the Subsidies Agreement.
                (7) Serious adverse effects.--The term ``serious adverse
            effects'' has the meaning given that term in Article 9.1 of the
            Subsidies Agreement.
                (8) Subsidies agreement.--The term ``Subsidies Agreement''
            means the Agreement on Subsidies and Countervailing Measures
            described in section 771(8) of the Tariff Act of 1930 (19
            U.S.C. 1677(8)).
                (9) Subsidies committee.--The term ``Subsidies Committee''
            means the committee established pursuant to Article 24 of the
            Subsidies Agreement.
                (10) Subsidy.--The term ``subsidy'' has the meaning given
            that term in Article 1 of the Subsidies Agreement.
                (11) Trade representative.--The term ``Trade
            Representative'' means the United States Trade Representative.
                (12) Violation of article 8.--The term ``violation of
            Article 8'' means the failure of a notified subsidy program or
            an individual subsidy granted pursuant to a notified subsidy
            program to meet the applicable conditions and criteria
            described in Article 8.2 of the Subsidies Agreement.
        (i) Treatment of Proprietary Information.--Notwithstanding any
    other provision of law, the administering authority may provide the
    Trade Representative with a copy of proprietary information submitted
    to, or obtained by, the administering authority that the Trade
    Representative considers relevant in carrying out its responsibilities
    under this part. The Trade Representative shall protect from public
    disclosure proprietary information obtained from the administering
    authority under this part.

    SEC. 282. REVIEW OF SUBSIDIES AGREEMENT.

        (a) General Objectives.--The general objectives of the United
    States under this part are--
                (1) to ensure that parts II and III of the Agreement on
            Subsidies and Countervailing Measures referred to in section
            101(d)(12) (hereafter in this section referred to as the
            ``Subsidies Agreement'') are effective in disciplining the use
            of subsidies and in remedying the adverse effects of subsidies,
            and
                (2) to ensure that part IV of the Subsidies Agreement does
            not undermine the benefits derived from any other part of that
            Agreement.
        (b) Specific Objective.--The specific objective of the United
    States under this part shall be to create a mechanism which will
    provide for an ongoing review of the operation of part IV of the
    Subsidies Agreement.
        (c) Sunset of Noncountervailable Subsidies Provisions.--
                (1) In general.--Subparagraphs (B), (C), (D), and (E) of
            section 771(5B) of the Tariff Act of 1930 shall cease to apply
            as provided in subparagraph (G)(i) of such section, unless,
            before the date referred to in such subparagraph (G)(i)--
                        (A) the Subsidies Committee determines to extend
                    Articles 6.1, 8, and 9 of the Subsidies Agreement as in
                    effect on the date on which the Subsidies Agreement
                    enters into force or in a modified form, in accordance
                    with Article 31 of such Agreement,
                        (B) the President consults with the Congress in
                    accordance with paragraph (2), and
                        (C) an implementing bill is submitted and enacted
                    into law in accordance with paragraphs (3) and (4).
                (2) Consultation with congress before subsidies committee
            agrees to extend.--Before a determination is made by the
            Subsidies Committee to extend Articles 6.1, 8, and 9 of the
            Subsidies Agreement, the President shall consult with the
            Committee on Ways and Means of the House of Representatives and
            the Committee on Finance of the Senate regarding such
            extension.
                (3) Implementation of extension.--
                        (A) Notification and submission.--Any extension of
                    subparagraphs (B), (C), (D), and (E) of section 771(5B)
                    of the Tariff Act of 1930 shall take effect if (and
                    only if)--
                                (i) after the Subsidies Committee
                            determines to extend Articles 6.1, 8, and 9 of
                            the Subsidies Agreement, the President submits
                            to the committees referred to in paragraph (2)
                            a copy of the document describing the terms of
                            such extension, together with--
                                        (I) a draft of an implementing
                                    bill,
                                        (II) a statement of any
                                    administrative action proposed to
                                    implement the extension, and
                                        (III) the supporting information
                                    described in subparagraph (C); and
                                (ii) the implementing bill is enacted into
                            law.
                        (B) Implementing bill.--The implementing bill
                    referred to in subparagraph (A) shall contain only
                    those provisions that are necessary or appropriate to
                    implement an extension of the provisions of section
                    771(5B) (B), (C), (D), and (E) of the Tariff Act of
                    1930 as in effect on the day before the date of the
                    enactment of the implementing bill or as modified to
                    reflect the determination of the Subsidies Committee to
                    extend Articles 6.1, 8, and 9 of the Subsidies
                    Agreement.
                        (C) Supporting information.--The supporting
                    information required under subparagraph (A)(i)(III)
                    consists of--
                                (i) an explanation as to how the
                            implementing bill and proposed administrative
                            action will change or affect existing law; and
                                (ii) a statement regarding--
                                        (I) how the extension serves the
                                    interests of United States commerce,
                                    and
                                        (II) why the implementing bill and
                                    proposed administrative action is
                                    required or appropriate to carry out
                                    the extension.
                (4) Application of congressional ``fast track'' procedures
            to implementing bill.--Section 151 of the Trade Act of 1974 (19
            U.S.C. 2191) is amended--
                        (A) in subsection (b)(1)--
                                (i) by inserting ``, or with respect to an
                            extension described in section 282(c)(3) of the
                            Uruguay Round Agreements Act,'' after ``trade
                            agreements'',
                                (ii) by striking ``or section 1103(a)(1) of
                            the Omnibus Trade and Competitiveness Act of
                            1988'' and inserting ``, section 1103(a)(1) of
                            the Omnibus Trade and Competitiveness Act of
                            1988, or section 282 of the Uruguay Round
                            Agreements Act'', and
                                (iii) by inserting ``or such extension'' in
                            subparagraphs (A) and (C) after ``agreements''
                            each place it appears, and
                        (B) in subsection (c)(1)--
                                (i) by inserting ``or section 282 of the
                            Uruguay Round Agreements Act'' after ``section
                            102'', and
                                (ii) by inserting ``or extension'' after
                            ``agreement'' each place it appears.
                (5) Report by the trade representative.--Not later than the
            date referred to in section 771(5B)(G)(i) of the Tariff Act of
            1930, the Trade Representative shall submit to the Congress a
            report setting forth the provisions of law which were enacted
            to implement Articles 6.1, 8, and 9 of the Subsidies Agreement
            and should be repealed or modified if such provisions are not
            extended.
        (d) Review of the Operation of the Subsidies Agreement.--The
    Secretary of Commerce, in consultation with other appropriate
    departments and agencies of the Federal Government, shall undertake an
    ongoing review of the operation of the Subsidies Agreement. The review
    shall address--
                (1) the effectiveness of part II of the Subsidies Agreement
            in disciplining the use of subsidies which are prohibited under
            Article 3 of the Agreement,
                (2) the effectiveness of part III and, in particular,
            Article 6.1 of the Subsidies Agreement, in remedying the
            adverse effects of subsidies which are actionable under the
            Agreement, and
                (3) the extent to which the provisions of part IV of the
            Subsidies Agreement may have undermined the benefits derived
            from other parts of the Agreement, and, in particular--
                        (A) the extent to which WTO member countries have
                    cooperated in reviewing and improving the operation of
                    part IV of the Subsidies Agreement,
                        (B) the extent to which the provisions of Articles
                    8.4 and 8.5 of the Subsidies Agreement have been
                    effective in identifying and remedying violations of
                    the conditions and criteria described in Article 8.2 of
                    the Agreement, and
                        (C) the extent to which the provisions of Article 9
                    of the Subsidies Agreement have been effective in
                    remedying the serious adverse effects of subsidy
                    programs described in Article 8.2 of the Agreement.
            Not later than 4 years and 6 months after the date of the
            enactment of this Act, the Secretary of Commerce shall submit
            to the Congress a report on the review required under this
            subsection.

    SEC. 283. AMENDMENTS TO TITLE VII OF THE TARIFF ACT OF 1930.

        (a) Preliminary Determination by Administering Authority.--Section
    703(b) of the Tariff Act of 1930 (19 U.S.C. 1671b(b)), as amended, is
    amended by adding at the end the following new paragraph:
                ``(5) Notification of article 8 violation.--If the only
            subsidy under investigation is a subsidy with respect to which
            the administering authority received notice from the Trade
            Representative of a violation of Article 8 of the Subsidies
            Agreement, paragraph (1) shall be applied by substituting `60
            days' for `65 days'.''.
        (b) Subsidy Practice Discovered During a Proceeding.--Section 775
    of the Tariff Act of 1930 (19 U.S.C. 1677d) is amended to read as
    follows:

    ``SEC. 775. COUNTERVAILABLE SUBSIDY PRACTICES DISCOVERED DURING A
                  PROCEEDING.

        ``If, in the course of a proceeding under this title, the
    administering authority discovers a practice which appears to be a
    countervailable subsidy, but was not included in the matters alleged in
    a countervailing duty petition, or if the administering authority
    receives notice from the Trade Representative that a subsidy or subsidy
    program is in violation of Article 8 of the Subsidies Agreement, then
    the administering authority--
                ``(1) shall include the practice, subsidy, or subsidy
            program in the proceeding if the practice, subsidy, or subsidy
            program appears to be a countervailable subsidy with respect to
            the merchandise which is the subject of the proceeding, or
                ``(2) shall transfer the information (other than
            confidential information) concerning the practice, subsidy, or
            subsidy program to the library maintained under section
            777(a)(1), if the practice, subsidy, or subsidy program appears
            to be a countervailable subsidy with respect to any other
            merchandise.''.
        (c) Administrative Reviews.--Section 751 of the Tariff Act of 1930
    (19 U.S.C. 1675), as amended, is amended by redesignating subsection
    (g) as subsection (h) and by inserting after subsection (f) the
    following new subsection:
        ``(g) Reviews To Implement Results of Subsidies Enforcement
    Proceeding.--
                ``(1) Violations of article 8 of the subsidies agreement.--
            If--
                        ``(A) the administering authority receives notice
                    from the Trade Representative of a violation of Article
                    8 of the Subsidies Agreement,
                        ``(B) the administering authority has reason to
                    believe that merchandise subject to an existing
                    countervailing duty order or suspended investigation is
                    benefiting from the subsidy or subsidy program found to
                    have been in violation of Article 8 of the Subsidies
                    Agreement, and
                        ``(C) no review pursuant to subsection (a)(1) is in
                    progress,
            the administering authority shall conduct a review of the order
            or suspended investigation to determine whether the subject
            merchandise benefits from the subsidy or subsidy program found
            to have been in violation of Article 8 of the Subsidies
            Agreement. If the administering authority determines that the
            subject merchandise is benefiting from the subsidy or subsidy
            program, it shall make appropriate adjustments in the estimated
            duty to be deposited or appropriate revisions to the terms of
            the suspension agreement.
                ``(2) Withdrawal of subsidy or imposition of
            countermeasures.--If the Trade Representative notifies the
            administering authority that, pursuant to Article 4 or Article
            7 of the Subsidies Agreement--
                        ``(A)(i) the United States has imposed
                    countermeasures, and
                        ``(ii) such countermeasures are based on the
                    effects in the United States of imports of merchandise
                    that is the subject of a countervailing duty order, or
                        ``(B) a WTO member country has withdrawn a
                    countervailable subsidy provided with respect to
                    merchandise subject to a countervailing duty order,
            the administering authority shall conduct a review to determine
            if the amount of the estimated duty to be deposited should be
            adjusted or the order should be revoked.
                ``(3) Expedited review.--The administering authority shall
            conduct reviews under this subsection on an expedited basis,
            and shall publish the results of such reviews in the Federal
            Register.''.

                           Subtitle C--Effective Date

    SEC. 291. EFFECTIVE DATE.

        (a) In General.--Except as provided in section 261, the amendments
    made by this title shall take effect on the date described in
    subsection (b) and apply with respect to--
                (1) investigations initiated--
                        (A) on the basis of petitions filed under section
                    702(b), 732(b), or 783(b) of the Tariff Act of 1930
                    after the date described in subsection (b), or
                        (B) by the administering authority under section
                    702(a) or 732(a) of such Act after such date,
                (2) reviews initiated under section 751 of such Act--
                        (A) by the administering authority or the
                    Commission on their own initiative after such date, or
                        (B) pursuant to a request filed after such date,
                (3) investigations initiated under section 753 of such Act
            after such date,
                (4) petitions filed under section 780 of such Act after
            such date, and
                (5) inquiries initiated under section 781 of such Act--
                        (A) by the administering authority on its own
                    initiative after such date, or
                        (B) pursuant to a request filed after such date.
        (b) Date Described.--The date described in this subsection is the
    date on which the WTO Agreement (as defined in section 2(9)) enters
    into force with respect to the United States.

               TITLE III--ADDITIONAL IMPLEMENTATION OF AGREEMENTS

                             Subtitle A--Safeguards

    SEC. 301. INVESTIGATIONS, DETERMINATIONS, AND RECOMMENDATIONS BY
                  INTERNATIONAL TRADE COMMISSION.

        (a) Treatment of Confidential Information.--Section 202(a)(8) of
    the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is amended by adding at
    the end the following: ``The Commission may request that parties
    providing confidential business information furnish nonconfidential
    summaries thereof or, if such parties indicate that the information in
    the submission cannot be summarized, the reasons why a summary cannot
    be provided. If the Commission finds that a request for confidentiality
    is not warranted and if the party concerned is either unwilling to make
    the information public or to authorize its disclosure in generalized or
    summarized form, the Commission may disregard the submission.''.
        (b) Administrative Protective Orders.--Section 202 of the Trade Act
    of 1974 (19 U.S.C. 2252) is amended by adding at the end the following:
        ``(i) Limited Disclosure of Confidential Business Information Under
    Protective Order.--The Commission shall promulgate regulations to
    provide access to confidential business information under protective
    order to authorized representatives of interested parties who are
    parties to an investigation under this section.''.
        (c) Notice of Proceedings.--Section 202(b) of the Trade Act of 1974
    (19 U.S.C. 2252(b)) is amended by striking paragraphs (3) and (4) and
    inserting the following:
                ``(3) The Commission shall publish notice of the
            commencement of any proceeding under this subsection in the
            Federal Register and shall, within a reasonable time
            thereafter, hold public hearings at which the Commission shall
            afford interested parties and consumers an opportunity to be
            present, to present evidence, to comment on the adjustment
            plan, if any, submitted under subsection (a), to respond to the
            presentations of other parties and consumers, and otherwise to
            be heard.''.
        (d) Critical Circumstances.--
                (1) In general.--Section 202(d)(2) of the Trade Act of 1974
            (19 U.S.C. 2252(d)(2)) is amended to read as follows:
                ``(2)(A) When a petition filed under subsection (a) alleges
            that critical circumstances exist and requests that provisional
            relief be provided under this subsection with respect to
            imports of the article identified in the petition, the
            Commission shall, not later than 60 days after the petition
            containing the request was filed, determine, on the basis of
            available information, whether--
                        ``(i) there is clear evidence that increased
                    imports (either actual or relative to domestic
                    production) of the article are a substantial cause of
                    serious injury, or the threat thereof, to the domestic
                    industry producing an article like or directly
                    competitive with the imported article; and
                        ``(ii) delay in taking action under this chapter
                    would cause damage to that industry that would be
                    difficult to repair.
                ``(B) If the determinations under subparagraph (A)(i) and
            (ii) are affirmative, the Commission shall find the amount or
            extent of provisional relief that is necessary to prevent or
            remedy the serious injury. In carrying out this subparagraph,
            the Commission shall give preference to increasing or imposing
            a duty on imports, if such form of relief is feasible and would
            prevent or remedy the serious injury.
                ``(C) The Commission shall immediately report to the
            President its determinations under subparagraph (A)(i) and (ii)
            and, if the determinations are affirmative, the finding under
            subparagraph (B).
                ``(D) Within 30 days after receiving a report from the
            Commission under subparagraph (C) containing an affirmative
            determination under subparagraph (A)(i) and (ii), the
            President, if he considers provisional relief to be warranted
            and after taking into account the finding of the Commission
            under subparagraph (B), shall proclaim, for a period not to
            exceed 200 days, such provisional relief that the President
            considers necessary to prevent or remedy the serious injury.
            Such relief shall take the form of an increase in, or the
            imposition of, a duty on imports, if such form of relief is
            feasible and would prevent or remedy the serious injury.''.
                (2) Time limits for determinations.--Section 202 of the
            Trade Act of 1974 (19 U.S.C. 2252) is amended--
                        (A) in subsection (b)(2)--
                                (i) in subparagraph (A) by inserting ``(180
                            days if the petition alleges that critical
                            circumstances exist)'' after ``120 days''; and
                                (ii) in subparagraph (B) by inserting
                            ``(210 days if the petition alleges that
                            critical circumstances exist)'' after ``150
                            days''; and
                        (B) in subsection (f)(1) by inserting ``(240 days
                    if the petition alleges that critical circumstances
                    exist)'' after ``180 days''.
                (3) Action by the president.--Section 203(a)(4) of the
            Trade Act of 1974 (19 U.S.C. 2253(a)(4)) is amended--
                        (A) by striking ``The'' and inserting ``(A) Subject
                    to subparagraph (B), the'';
                        (B) by inserting after ``60 days'' the following:
                    ``(50 days if the President has proclaimed provisional
                    relief under section 202(d)(2)(D) with respect to the
                    article concerned)''; and
                        (C) by striking ``; except that'' and all that
                    follows through ``received.'' and inserting a period
                    and the following:
                ``(B) If a supplemental report is requested under paragraph
            (5), the President shall take action under paragraph (1) within
            30 days after the supplemental report is received, except that,
            in a case in which the President has proclaimed provisional
            relief under section 202(d)(2)(D) with respect to the article
            concerned, action by the President under paragraph (1) may not
            be taken later than the 200th day after the provisional relief
            was proclaimed.''.
                (4) Conforming amendments.--Section 202(d) of the Trade Act
            of 1974 (19 U.S.C. 2252(d)) is amended--
                        (A) in paragraph (3)--
                                (i) by striking ``(2)(B)'' and inserting
                            ``(2)(D)''; and
                                (ii) by striking ``subsection (b)(1)'' and
                            inserting ``paragraph (2)(A)''; and
                        (B) in paragraph (4)(A)(i) by inserting ``or
                    (2)(D)'' after ``(1)(G)''.
        (e) Factors in Making Determinations.--Section 202(c) of the Trade
    Act of 1974 (19 U.S.C. 2252(c)) is amended--
                (1) in paragraph (1)(B)(i) by inserting ``productivity,''
            after ``wages,''; and
                (2) in paragraph (6)--
                        (A) by amending subparagraph (A) to read as
                    follows:
                        ``(A)(i) The term `domestic industry' means, with
                    respect to an article, the producers as a whole of the
                    like or directly competitive article or those producers
                    whose collective production of the like or directly
                    competitive article constitutes a major proportion of
                    the total domestic production of such article.
                        ``(ii) The term `domestic industry' includes
                    producers located in the United States insular
                    possessions.''; and
                        (B) by adding at the end the following:
                        ``(C) The term `serious injury' means a significant
                    overall impairment in the position of a domestic
                    industry.
                        ``(D) The term `threat of serious injury' means
                    serious injury that is clearly imminent.
        (f) Limitations on Investigations.--Section 202(h) of the Trade Act
    of 1974 (19 U.S.C. 2252(h)) is amended by adding at the end the
    following:
                ``(3)(A) Not later than the date on which the Textiles
            Agreement enters into force with respect to the United States,
            the Secretary of Commerce shall publish in the Federal Register
            a list of all articles that are subject to the Textiles
            Agreement. An investigation may be conducted under this section
            concerning imports of any article that is subject to the
            Textiles Agreement only if the United States has integrated
            that article into GATT 1994 pursuant to the Textiles Agreement,
            as set forth in notices published in the Federal Register by
            the Secretary of Commerce, including the notice published under
            section 331 of the Uruguay Round Agreements Act.
                ``(B) For purposes of this paragraph:
                        ``(i) The term `Textiles Agreement' means the
                    Agreement on Textiles and Clothing referred to in
                    section 101(d)(4) of the Uruguay Round Agreements Act.
                        ``(ii) The term `GATT 1994' has the meaning given
                    that term in section 2(1)(B) of the Uruguay Round
                    Agreements Act.''.

    SEC. 302. ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT INJURY.

        (a) Authority to Enter Into International Agreements.--Section 203
    of the Trade Act of 1974 (19 U.S.C. 2253) is amended--
                (1) in subsection (a)(3)(E) by striking ``orderly
            marketing'';
                (2) in subsection (d)(1) by striking ``orderly marketing
            agreements'' and inserting ``agreements described in subsection
            (a)(3)(E)'';
                (3) in subsection (f)--
                        (A) in the subsection heading by striking ``Orderly
                    Marketing and Other'' and inserting ``Certain'';
                        (B) in paragraph (1)--
                                (i) by striking ``orderly marketing
                            agreements'' the first place it appears and
                            inserting ``agreements of the type described in
                            subsection (a)(3)(E)''; and
                                (ii) by striking ``orderly marketing
                            agreements with foreign countries'' and
                            inserting ``agreements of the type described in
                            subsection (a)(3)(E)''; and
                        (C) in paragraph (2) by striking ``orderly
                    marketing agreement implemented under subsection (a)''
                    and inserting ``agreement implemented under subsection
                    (a)(3)(E)''; and
                (4) in subsection (g)(2)--
                        (A) in the first sentence by striking ``orderly
                    marketing or other''; and
                        (B) in the second sentence--
                                (i) by striking ``orderly marketing
                            agreement'' and inserting ``agreement of the
                            type described in subsection (a)(3)(E) that
                            is''; and
                                (ii) by striking ``agreements'' and
                            inserting ``agreement''.
        (b) Limitations on Actions.--
                (1) Duration of actions.--Section 203(e)(1) of the Trade
            Act of 1974 (19 U.S.C. 2253(e)(1)) is amended to read as
            follows:
                ``(1)(A) Subject to subparagraph (B), the duration of the
            period in which an action taken under this section may be in
            effect shall not exceed 4 years. Such period shall include the
            period, if any, in which provisional relief under section
            202(d) was in effect.
                ``(B)(i) Subject to clause (ii), the President, after
            receiving an affirmative determination from the Commission
            under section 204(c) (or, if the Commission is equally divided
            in its determination, a determination which the President
            considers to be an affirmative determination of the
            Commission), may extend the effective period of any action
            under this section if the President determines that--
                        ``(I) the action continues to be necessary to
                    prevent or remedy the serious injury; and
                        ``(II) there is evidence that the domestic industry
                    is making a positive adjustment to import competition.
                ``(ii) The effective period of any action under this
            section, including any extensions thereof, may not, in the
            aggregate, exceed 8 years.''.
                (2) Limitation on quantitative restrictions.--Section
            203(e)(4) of the Trade Act of 1974 (19 U.S.C. 2253(e)(4)) is
            amended to read as follows:
                ``(4) 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
            average quantity or value of such article entered into the
            United States in the most recent 3 years that are
            representative of imports of such article and for which data
            are available, unless the President finds that the importation
            of a different quantity or value is clearly justified in order
            to prevent or remedy the serious injury.''.
                (3) Phasing-down of actions.--Section 203(e)(5) of the
            Trade Act of 1974 (19 U.S.C. 2253(e)(5)) is amended to read as
            follows:
                ``(5) An action described in subsection (a)(3)(A), (B), or
            (C) that has an effective period of more than 1 year shall be
            phased down at regular intervals during the period in which the
            action is in effect.''.
                (4) Limitations on new actions and investigations of same
            article.--(A) Section 203(e) of the Trade Act of 1974 (19
            U.S.C. 2253(e)) is amended by adding at the end the following:
                ``(7)(A) If an article was the subject of an action under
            subparagraph (A), (B), (C), or (E) of subsection (a)(3), no new
            action may be taken under any of those subparagraphs with
            respect to such article for--
                        ``(i) a period beginning on the date on which the
                    previous action terminates that is equal to the period
                    in which the previous action was in effect, or
                        ``(ii) a period of 2 years beginning on the date on
                    which the previous action terminates,
            whichever is greater.
                ``(B) Notwithstanding subparagraph (A), if the previous
            action under subparagraph (A), (B), (C), or (E) of subsection
            (a)(3) with respect to an article was in effect for a period of
            180 days or less, the President may take a new action under any
            of those subparagraphs with respect to such article if--
                        ``(i) at least 1 year has elapsed since the
                    previous action went into effect; and
                        ``(ii) an action described in any of those
                    subparagraphs has not been taken with respect to such
                    article more than twice in the 5-year period
                    immediately preceding the date on which the new action
                    with respect to such article first becomes
                    effective.''.
                (B) Section 202(h)(2) of the Trade Act of 1974 (19 U.S.C.
            2252(h)(2)) is amended to read as follows:
                ``(2) No new investigation shall be conducted with respect
            to an article that is or has been the subject of an action
            under section 203(a)(3)(A), (B), (C), or (E) if the last day on
            which the President could take action under section 203 in the
            new investigation is a date earlier than that permitted under
            section 203(e)(7).''.
        (c) Reports on Monitoring.--Section 204(a) of the Trade Act of 1974
    (19 U.S.C. 2354(a)) is amended--
                (1) by amending paragraph (2) to read as follows:
                ``(2) If the initial period during which the action taken
            under section 203 is in effect exceeds 3 years, or if an
            extension of such action exceeds 3 years, the Commission shall
            submit a report on the results of the monitoring under
            paragraph (1) to the President and to the Congress not later
            than the date that is the mid-point of the initial period, and
            of each such extension, during which the action is in
            effect.''; and
                (2) in paragraph (4) by striking ``extension,''.
        (d) Investigation of Extension of Action.--Section 204 of the Trade
    Act of 1974 (19 U.S.C. 2254) is amended--
                (1) by redesignating subsections (c) and (d) as subsections
            (d) and (e), respectively; and
                (2) by inserting after subsection (b) the following:
        ``(c) Extension of Action.--
                ``(1) Upon request of the President, or upon petition on
            behalf of the industry concerned filed with the Commission not
            earlier than the date which is 9 months, and not later than the
            date which is 6 months, before the date any action taken under
            section 203 is to terminate, the Commission shall investigate
            to determine whether action under section 203 continues to be
            necessary to prevent or remedy serious injury and whether there
            is evidence that the industry is making a positive adjustment
            to import competition.
                ``(2) The Commission shall publish notice of the
            commencement of any proceeding under this subsection in the
            Federal Register and shall, within a reasonable time
            thereafter, hold a public hearing at which the Commission shall
            afford interested parties and consumers an opportunity to be
            present, to present evidence, and to respond to the
            presentations of other parties and consumers, and otherwise to
            be heard.
                ``(3) The Commission shall transmit to the President a
            report on its investigation and determination under this
            subsection not later than 60 days before the action under
            section 203 is to terminate, unless the President specifies a
            different date.''.

    SEC. 303. MISCELLANEOUS AMENDMENTS.

        Title II of the Trade Act of 1974 is amended as follows:
                (1) Section 202(a)(2)(B)(ii) (19 U.S.C. 2252(a)(2)(B)(ii))
            is amended by striking ``, or at any time before the 150th day
            after the date of filing be amended to request,''.
                (2) Section 202(b)(1)(A) (19 U.S.C. 2252(b)(1)(A)) is
            amended by striking ``(b)'' and inserting ``(a)''.
                (3) Section 202(d)(1) (19 U.S.C. 2252(d)(1)) is amended--
                        (A) in subparagraph (C)(i) by striking ``paragraph
                    (2)'' and inserting ``subparagraph (B)''; and
                        (B) by striking ``or threat thereof'' each place it
                    appears in subparagraphs (E) and (G).
                (4) Section 202(d)(4)(A)(i) (19 U.S.C. 2252(d)(4)(A)(i)) is
            amended by striking ``203(a)'' and inserting ``202(b)''.
                (5) Section 202(c)(6) (19 U.S.C. 2252(c)(6)) is amended by
            striking ``subsection'' and inserting ``section''.
                (6) Section 202(f)(2)(G)(ii) (19 U.S.C. 2252(f)(2)(G)(ii))
            is amended by striking ``is'' and inserting ``are''.
                (7) Section 203(a)(2)(C) (19 U.S.C. 2253(a)(2)(C)) is
            amended by striking ``201(b)'' and inserting ``202(a)''.
                (8) Section 203(c) (19 U.S.C. 2253(c)) is amended by
            striking ``(c)(2)'' and inserting ``(d)(2)''.
                (9) Section 203(e)(2) (19 U.S.C. 2253(e)(2)) is amended--
                        (A) by striking ``may be taken under subsection
                    (a)(1)(A), (B), or (C) or under section 202(d)(2)(B)''
                    and inserting ``of a type described in subsection
                    (a)(3)(A), (B), or (C) may be taken under subsection
                    (a)(1), under section 202(d)(1)(G), or under section
                    202(d)(2)(D)''; and
                        (B) by striking ``or threat thereof''.
                (10) Section 203(e)(6)(B) (19 U.S.C. 2253(e)(6)(B)) is
            amended--
                        (A) by striking ``203(c)'' and inserting
                    ``202(e)''; and
                        (B) by striking ``203(a)'' and inserting
                    ``202(b)''.

    SEC. 304. EFFECTIVE DATE.

        (a) In General.--Except as provided in subsection (b), this
    subtitle and the amendments made by this subtitle take effect on the
    date on which the WTO Agreement enters into force with respect to the
    United States.
        (b) Section 301(b).--The amendment made by section 301(b) takes
    effect on the date of the enactment of this Act.

         Subtitle B--Foreign Trade Barriers and Unfair Trade Practices

    SEC. 311. IDENTIFICATION OF FOREIGN ANTICOMPETITIVE PRACTICES.

        (a) Report to Congress.--
                (1) Contents of report.--Section 181(b)(2) of the Trade Act
            of 1974 (19 U.S.C. 2241(b)(2)) is amended--
                        (A) in subparagraph (A) by striking ``or'' after
                    the comma;
                        (B) in subparagraph (B) by striking the period and
                    inserting ``, or''; and
                        (C) by adding after subparagraph (B) the following:
                        ``(C) a section on foreign anticompetitive
                    practices, the toleration of which by foreign
                    governments is adversely affecting exports of United
                    States goods or services.''.
                (2) Assistance of other agencies.--Section 181(c) of the
            Trade Act of 1974 (19 U.S.C. 2241(c)) is amended by adding at
            the end of paragraph (1) the following: ``In preparing the
            section of the report required by subsection (b)(2)(C), the
            Trade Representative shall consult in particular with the
            Attorney General.''.

    SEC. 312. CONSULTATION WITH COMMITTEES.

        Section 181(b)(3) of the Trade Act of 1974 (19 U.S.C. 2241(b)(3))
    is amended by adding at the end the following: ``After the submission
    of the report required by paragraph (1), the Trade Representative shall
    also consult periodically with, and take into account the views of, the
    committees described in that paragraph regarding means to address the
    foreign trade barriers identified in the report, including the possible
    initiation of investigations under section 302 or other trade
    actions.''.

    SEC. 313. IDENTIFICATION OF COUNTRIES THAT DENY PROTECTION OF
                  INTELLECTUAL PROPERTY RIGHTS.

        Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) is amended--
                (1) in subsection (b) by adding at the end the following:
                ``(4) In identifying foreign countries under paragraphs (1)
            and (2) of subsection (a), the Trade Representative shall take
            into account--
                        ``(A) the history of intellectual property laws and
                    practices of the foreign country, including any
                    previous identification under subsection (a)(2), and
                        ``(B) the history of efforts of the United States,
                    and the response of the foreign country, to achieve
                    adequate and effective protection and enforcement of
                    intellectual property rights.''; and
                (2) in subsection (d)--
                        (A) in paragraph (3) by amending the matter
                    preceding subparagraph (A) to read as follows:
                ``(3) A foreign country denies fair and equitable market
            access if the foreign country effectively denies access to a
            market for a product protected by a copyright or related right,
            patent, trademark, mask work, trade secret, or plant breeder's
            right, through the use of laws, procedures, practices, or
            regulations which--''; and
                        (B) by adding at the end the following:
                ``(4) A foreign country may be determined to deny adequate
            and effective protection of intellectual property rights,
            notwithstanding the fact that the foreign country may be in
            compliance with the specific obligations of the Agreement on
            Trade-Related Aspects of Intellectual Property Rights referred
            to in section 101(d)(15) of the Uruguay Round Agreements
            Act.''; and
                (3) by adding at the end the following:
        ``(g) Annual Report.--The Trade Representative shall, by not later
    than the date by which countries are identified under subsection (a),
    transmit to the Committee on Ways and Means of the House of
    Representatives and the Committee on Finance of the Senate, a report on
    actions taken under this section during the 12 months preceding such
    report, and the reasons for such actions, including a description of
    progress made in achieving improved intellectual property protection
    and market access for persons relying on intellectual property
    rights.''.

    SEC. 314. AMENDMENTS TO TITLE III OF THE TRADE ACT OF 1974.

        (a) Scope of Authority.--
                (1) In general.--Subsections (a)(1) and (b)(2) of section
            301 of the Trade Act of 1974 (19 U.S.C. 2411(a)(1) and (b)(2))
            are each amended by adding the following sentence at the end:
    ``Actions may be taken that are within the power of the President with
    respect to trade in any goods or services, or with respect to any other
    area of pertinent relations with the foreign country.''.
                (2) Import restrictions.--Section 301(c)(5) of the Trade
            Act of 1974 (19 U.S.C. 2411(c)(5)) is amended by striking the
            matter preceding subparagraph (B) and inserting the following:
                ``(5) If the Trade Representative determines that actions
            to be taken under subsection (a) or (b) are to be in the form
            of import restrictions, the Trade Representative shall--
                        ``(A) give preference to the imposition of duties
                    over the imposition of other import restrictions,
                    and''.
        (b) Relationship With Other Authorities.--Section 301(c) of the
    Trade Act of 1974 (19 U.S.C. 2411(c)) is amended--
                (1) in paragraph (1)--
                        (A) in subparagraph (B), by striking ``or'' after
                    the semicolon at the end;
                        (B) by redesignating subparagraph (C) as
                    subparagraph (D); and
                        (C) by inserting after subparagraph (B) the
                    following:
                        ``(C) in a case in which the act, policy, or
                    practice also fails to meet the eligibility criteria
                    for receiving duty-free treatment under subsections (b)
                    and (c) of section 502 of this Act, subsections (b) and
                    (c) of section 212 of the Caribbean Basin Economic
                    Recovery Act (19 U.S.C. 2702(b) and (c)), or
                    subsections (c) and (d) of section 203 of the Andean
                    Trade Preference Act (19 U.S.C. 3202(c) and (d)),
                    withdraw, limit, or suspend such treatment under such
                    provisions, notwithstanding the provisions of
                    subsection (a)(3) of this section; or''.
        (c) Definition of an Unreasonable Act, Policy, or Practice.--
    Section 301(d)(3) of the Trade Act of 1974 (19 U.S.C. 2411(d)(3)) is
    amended--
                (1) in subparagraph (B)(i) by striking subclauses (II) and
            (III) and inserting the following:
                                ``(II) provision of adequate and effective
                            protection of intellectual property rights
                            notwithstanding the fact that the foreign
                            country may be in compliance with the specific
                            obligations of the Agreement on Trade-Related
                            Aspects of Intellectual Property Rights
                            referred to in section 101(d)(15) of the
                            Uruguay Round Agreements Act,
                                ``(III) nondiscriminatory market access
                            opportunities for United States persons that
                            rely upon intellectual property protection, or
                                ``(IV) market opportunities, including the
                            toleration by a foreign government of
                            systematic anticompetitive activities by
                            enterprises or among enterprises in the foreign
                            country that have the effect of restricting, on
                            a basis that is inconsistent with commercial
                            considerations, access of United States goods
                            or services to a foreign market,''; and
                (2) by adding at the end the following:
                ``(F)(i) For the purposes of subparagraph (B)(i)(II),
            adequate and effective protection of intellectual property
            rights includes adequate and effective means under the laws of
            the foreign country for persons who are not citizens or
            nationals of such country to secure, exercise, and enforce
            rights and enjoy commercial benefits relating to patents,
            trademarks, copyrights and related rights, mask works, trade
            secrets, and plant breeder's rights.
                ``(ii) For purposes of subparagraph (B)(i)(IV), the denial
            of fair and equitable nondiscriminatory market access
            opportunities includes restrictions on market access related to
            the use, exploitation, or enjoyment of commercial benefits
            derived from exercising intellectual property rights in
            protected works or fixations or products embodying protected
            works.''.
        (d) Time Limits For Determinations of Unfair Trade Practices.--
    Section 304(a) of the Trade Act of 1974 (19 U.S.C. 2414(a)) is
    amended--
                (1) in subparagraph (A) of paragraph (2), by striking
            ``(other than the agreement on subsidies and countervailing
            measures described in section 2(c)(5) of the Trade Agreements
            Act of 1979)'',
                (2)(A) in subparagraph (A) of paragraph (3), by inserting
            ``does not consider that a trade agreement, including the
            Agreement on Trade-Related Aspects of Intellectual Property
            (referred to in section 101(d)(15) of the Uruguay Round
            Agreements Act), is involved or'' after ``the Trade
            Representative'' the first place it appears, and
                (B) in subparagraph (B) of paragraph (3), in the matter
            preceding clause (i), by striking ``any investigation initiated
            by reason of section 302(b)(2)'' and inserting ``an
            investigation initiated by reason of section 302(b)(2) (other
            than an investigation involving a trade agreement)'', and
                (3) in paragraph (4), by striking ``(other than the
            agreement on subsidies and countervailing measures described in
            section 2(c)(5) of the Trade Agreements Act of 1979)''.
        (e) Monitoring of Foreign Compliance.--Subsections (a) and (b) of
    section 306 of the Trade Act of 1974 (19 U.S.C. 2416) are amended to
    read as follows:
        ``(a) In General.--The Trade Representative shall monitor the
    implementation of each measure undertaken, or agreement that is entered
    into, by a foreign country to provide a satisfactory resolution of a
    matter subject to investigation under this chapter or subject to
    dispute settlement proceedings to enforce the rights of the United
    States under a trade agreement providing for such proceedings.
        ``(b) Further Action.--
                ``(1) In general.--If, on the basis of the monitoring
            carried out under subsection (a), the Trade Representative
            considers that a foreign country is not satisfactorily
            implementing a measure or agreement referred to in subsection
            (a), the Trade Representative shall determine what further
            action the Trade Representative shall take under section
            301(a). For purposes of section 301, any such determination
            shall be treated as a determination made under section
            304(a)(1).''.
                ``(2) WTO dispute settlement recommendations.--If the
            measure or agreement referred to in subsection (a) concerns the
            implementation of a recommendation made pursuant to dispute
            settlement proceedings under the World Trade Organization, and
            the Trade Representative considers that the foreign country has
            failed to implement it, the Trade Representative shall make the
            determination in paragraph (1) no later than 30 days after the
            expiration of the reasonable period of time provided for such
            implementation under paragraph 21 of the Understanding on Rules
            and Procedures Governing the Settlement of Disputes that is
            referred to in section 101(d)(16) of the Uruguay Round
            Agreements Act.''.
        (f) Extension of Section 310 of the Trade Act of 1974.--Section 310
    of the Trade Act of 1974 (19 U.S.C. 2420) is amended to read as
    follows:

    ``SEC. 310. IDENTIFICATION OF TRADE EXPANSION PRIORITIES.

        ``(a) Identification.--
                ``(1) Within 180 days after the submission in calendar year
            1995 of the report required by section 181(b), the Trade
            Representative shall--
                        ``(A) review United States trade expansion
                    priorities,
                        ``(B) identify priority foreign country practices,
                    the elimination of which is likely to have the most
                    significant potential to increase United States
                    exports, either directly or through the establishment
                    of a beneficial precedent, and
                        ``(C) submit to the Committee on Finance of the
                    Senate and the Committee on Ways and Means of the House
                    of Representatives and publish in the Federal Register
                    a report on the priority foreign country practices
                    identified.
                ``(2) In identifying priority foreign country practices
            under paragraph (1) of this section, the Trade Representative
            shall take into account all relevant factors, including--
                        ``(A) the major barriers and trade distorting
                    practices described in the National Trade Estimate
                    Report required under section 181(b);
                        ``(B) the trade agreements to which a foreign
                    country is a party and its compliance with those
                    agreements;
                        ``(C) the medium- and long-term implications of
                    foreign government procurement plans; and
                        ``(D) the international competitive position and
                    export potential of United States products and
                    services.
                ``(3) The Trade Representative may include in the report,
            if appropriate--
                        ``(A) a description of foreign country practices
                    that may in the future warrant identification as
                    priority foreign country practices; and
                        ``(B) a statement about other foreign country
                    practices that were not identified because they are
                    already being addressed by provisions of United States
                    trade law, by existing bilateral trade agreements, or
                    as part of trade negotiations with other countries and
                    progress is being made toward the elimination of such
                    practices.
        ``(b) Initiation of Investigations.--By no later than the date
    which is 21 days after the date on which a report is submitted to the
    appropriate congressional committees under subsection (a)(1), the Trade
    Representative shall initiate under section 302(b)(1) investigations
    under this chapter with respect to all of the priority foreign country
    practices identified.
        ``(c) Agreements for the Elimination of Barriers.--In the
    consultations with a foreign country that the Trade Representative is
    required to request under section 303(a) with respect to an
    investigation initiated by reason of subsection (b), the Trade
    Representative shall seek to negotiate an agreement that provides for
    the elimination of the practices that are the subject of the
    investigation as quickly as possible or, if elimination of the
    practices is not feasible, an agreement that provides for compensatory
    trade benefits.
        ``(d) Reports.--The Trade Representative shall include in the
    semiannual report required by section 309 a report on the status of any
    investigations initiated pursuant to subsection (b) and, where
    appropriate, the extent to which such investigations have led to
    increased opportunities for the export of products and services of the
    United States.''.

    SEC. 315. OBJECTIVES IN INTELLECTUAL PROPERTY.

        It is the objective of the United States--
                (1) to accelerate the implementation of the Agreement on
            Trade-Related Aspects of Intellectual Property Rights referred
            to in section 101(d)(15),
                (2) to seek enactment and effective implementation by
            foreign countries of laws to protect and enforce intellectual
            property rights that supplement and strengthen the standards of
            the Agreement on Trade-Related Aspects of Intellectual Property
            Rights referred to in section 101(d)(15) and the North American
            Free Trade Agreement and, in particular--
                        (A) to conclude bilateral and multilateral
                    agreements that create obligations to protect and
                    enforce intellectual property rights that cover new and
                    emerging technologies and new methods of transmission
                    and distribution, and
                        (B) to prevent or eliminate discrimination with
                    respect to matters affecting the availability,
                    acquisition, scope, maintenance, use, and enforcement
                    of intellectual property rights,
                (3) to secure fair, equitable, and nondiscriminatory market
            access opportunities for United States persons that rely upon
            intellectual property protection,
                (4) to take an active role in the development of the
            intellectual property regime under the World Trade Organization
            to ensure that it is consistent with other United States
            objectives, and
                (5) to take an active role in the World Intellectual
            Property Organization (WIPO) to develop a cooperative and
            mutually supportive relationship between the World Trade
            Organization and WIPO.

    SEC. 316. EFFECTIVE DATE.

        (a) In General.--Except as provided in subsection (b), this
    subtitle and the amendments made by this subtitle take effect on the
    date on which the WTO Agreement enters into force with respect to the
    United States.
        (b) Section 314(f).--The amendment made by section 314(f) takes
    effect on the date of the enactment of this Act.

                  Subtitle C--Unfair Practices in Import Trade

    SEC. 321. UNFAIR PRACTICES IN IMPORT TRADE.

        (a) Amendments to Section 337 of the Tariff Act of 1930.--Section
    337 of the Tariff Act of 1930 (19 U.S.C. 1337) is amended as follows:
                (1) Investigation.--Subsection (b) is amended--
                        (A) by striking ``; Time Limits'' in the heading;
                        (B) in paragraph (1) by striking all that follows
                    the second sentence and inserting the following: ``The
                    Commission shall conclude any such investigation and
                    make its determination under this section at the
                    earliest practicable time after the date of publication
                    of notice of such investigation. To promote expeditious
                    adjudication, the Commission shall, within 45 days
                    after an investigation is initiated, establish a target
                    date for its final determination.''; and
                        (C) in paragraph (3)--
                                (i) in the first sentence--
                                        (I) by striking ``the Tariff Act of
                                    1930'' and inserting ``this Act''; and
                                        (II) by striking ``such Act'' and
                                    inserting ``such subtitle''; and
                                (ii) by striking the fifth sentence.
                (2) Determination; review.--Subsection (c) is amended--
                        (A) in the first sentence by striking ``a
                    settlement agreement'' and inserting ``an agreement
                    between the private parties to the investigation,
                    including an agreement to present the matter for
                    arbitration'';
                        (B) by inserting the following after the third
                    sentence: ``A respondent may raise any counterclaim in
                    a manner prescribed by the Commission. Immediately
                    after a counterclaim is received by the Commission, the
                    respondent raising such counterclaim shall file a
                    notice of removal with a United States district court
                    in which venue for any of the counterclaims raised by
                    the party would exist under section 1391 of title 28,
                    United States Code. Any counterclaim raised pursuant to
                    this section shall relate back to the date of the
                    original complaint in the proceeding before the
                    Commission. Action on such counterclaim shall not delay
                    or affect the proceeding under this section, including
                    the legal and equitable defenses that may be raised
                    under this subsection.''; and
                        (C) by adding at the end the following:
                    ``Determinations by the Commission under subsections
                    (e), (f), and (j) with respect to forfeiture of bonds
                    and under subsection (h) with respect to the imposition
                    of sanctions for abuse of discovery or abuse of process
                    shall also be reviewable in accordance with section 706
                    of title 5, United States Code.''.
                (3) Entry under bond.--Subsection (e) is amended--
                        (A) in the last sentence of paragraph (1) by
                    striking ``determined by the Commission'' and all that
                    follows through the end of the sentence and inserting
                    ``prescribed by the Secretary in an amount determined
                    by the Commission to be sufficient to protect the
                    complainant from any injury. If the Commission later
                    determines that the respondent has violated the
                    provisions of this section, the bond may be forfeited
                    to the complainant.'';
                        (B) by adding at the end of paragraph (2) the
                    following: ``If the Commission later determines that
                    the respondent has not violated the provisions of this
                    section, the bond may be forfeited to the
                    respondent.''; and
                        (C) by adding at the end the following new
                    paragraph:
        ``(4) The Commission shall prescribe the terms and conditions under
    which bonds may be forfeited under paragraphs (1) and (2).''.
                (4) Cease and desist orders.--Subsection (f)(1) is amended
            by adding at the end the following: ``If a temporary cease and
            desist order is issued in addition to, or in lieu of, an
            exclusion order under subsection (e), the Commission may
            require the complainant to post a bond, in an amount determined
            by the Commission to be sufficient to protect the respondent
            from any injury, as a prerequisite to the issuance of an order
            under this subsection. If the Commission later determines that
            the respondent has not violated the provisions of this section,
            the bond may be forfeited to the respondent. The Commission
            shall prescribe the terms and conditions under which the bonds
            may be forfeited under this paragraph.''.
                (5) Conditions applicable for general exclusion orders.--
            (A) Subsection (d) is amended--
                        (i) by inserting ``(1)'' before ``If'';
                        (ii) in the first sentence by striking ``there is
                    violation'' and inserting ``there is a violation''; and
                        (iii) by adding at the end the following new
                    paragraph:
        ``(2) The authority of the Commission to order an exclusion from
    entry of articles shall be limited to persons determined by the
    Commission to be violating this section unless the Commission
    determines that--
                ``(A) a general exclusion from entry of articles is
            necessary to prevent circumvention of an exclusion order
            limited to products of named persons; or
                ``(B) there is a pattern of violation of this section and
            it is difficult to identify the source of infringing
            products.''.
                (B) Subsection (g)(2) is amended--
                        (i) by striking ``and'' at the end of subparagraph
                    (A);
                        (ii) by striking the period at the end of
                    subparagraph (B) and inserting ``, and''; and
                        (iii) by adding after subparagraph (B) the
                    following:
                ``(C) the requirements of subsection (d)(2) are met.''.
                (6) Entry under bond after referral to the president.--
            Subsection (j)(3) is amended by striking ``shall be entitled to
            entry under bond'' and all that follows through the end of the
            sentence and inserting ``shall, until such determination
            becomes final, be entitled to entry under bond prescribed by
            the Secretary in an amount determined by the Commission to be
            sufficient to protect the complainant from any injury. If the
            determination becomes final, the bond may be forfeited to the
            complainant. The Commission shall prescribe the terms and
            conditions under which bonds may be forfeited under this
            paragraph.''.
                (7) Access to confidential information.--Subsection (n)(2)
            is amended--
                        (A) by amending subparagraph (A) to read as
                    follows:
                ``(A) an officer or employee of the Commission who is
            directly concerned with--
                        ``(i) carrying out the investigation or related
                    proceeding in connection with which the information is
                    submitted,
                        ``(ii) the administration of a bond posted pursuant
                    to subsection (e), (f), or (j),
                        ``(iii) the administration or enforcement of an
                    exclusion order issued pursuant to subsection (d), (e),
                    or (g), a cease and desist order issued pursuant to
                    subsection (f), or a consent order issued pursuant to
                    subsection (c),
                        ``(iv) proceedings for the modification or
                    rescission of a temporary or permanent order issued
                    under subsection (d), (e), (f), (g), or (i), or a
                    consent order issued under this section, or
                        ``(v) maintaining the administrative record of the
                    investigation or related proceeding,''; and
                        (B) by amending subparagraph (C) to read as
                    follows:
                ``(C) an officer or employee of the United States Customs
            Service who is directly involved in administering an exclusion
            from entry under subsection (d), (e), or (g) resulting from the
            investigation or related proceeding in connection with which
            the information is submitted.''.
                (8) Technical amendment.--Subsection (l) is amended by
            striking ``Claims Court'' and inserting ``Court of Federal
            Claims''.
        (b) Amendments to Title 28, United States Code.--
                (1) Stay of actions.--
                        (A) In general.--Chapter 111 of title 28, United
                    States Code, is amended by adding at the end the
                    following new section:
    ``Sec. 1659. Stay of certain actions pending disposition of related
                  proceedings before the United States International Trade
                  Commission
        ``(a) Stay.--In a civil action involving parties that are also
    parties to a proceeding before the United States International Trade
    Commission under section 337 of the Tariff Act of 1930, at the request
    of a party to the civil action that is also a respondent in the
    proceeding before the Commission, the district court shall stay, until
    the determination of the Commission becomes final, proceedings in the
    civil action with respect to any claim that involves the same issues
    involved in the proceeding before the Commission, but only if such
    request is made within--
                ``(1) 30 days after the party is named as a respondent in
            the proceeding before the Commission, or
                ``(2) 30 days after the district court action is filed,
    whichever is later.
        ``(b) Use of Commission Record.--Notwithstanding section 337(n)(1)
    of the Tariff Act of 1930, after dissolution of a stay under subsection
    (a), the record of the proceeding before the United States
    International Trade Commission shall be transmitted to the district
    court and shall be admissible in the civil action, subject to such
    protective order as the district court determines necessary, to the
    extent permitted under the Federal Rules of Evidence and the Federal
    Rules of Civil Procedure.''.
                        (B) Clerical amendment.--The table of sections for
                    chapter 111 of title 28, United States Code, is amended
                    by adding at the end the following new item:

    ``1659. Stay of certain actions pending disposition of related
                                proceedings before the United States
                                International Trade Commission.''.
                (2) Counterclaims.--Section 1446 of title 28, United States
            Code, is amended by adding at the end the following:
        ``(f) With respect to any counterclaim removed to a district court
    pursuant to section 337(c) of the Tariff Act of 1930, the district
    court shall resolve such counterclaim in the same manner as an original
    complaint under the Federal Rules of Civil Procedure, except that the
    payment of a filing fee shall not be required in such cases and the
    counterclaim shall relate back to the date of the original complaint in
    the proceeding before the International Trade Commission under section
    337 of that Act.''.
                (3) Jurisdiction.--
                        (A) In general.--Chapter 85 of title 28, United
                    States Code, is amended by adding at the end the
                    following:
    ``Sec. 1368. Counterclaims in unfair practices in international trade.
        ``The district courts shall have original jurisdiction of any civil
    action based on a counterclaim raised pursuant to section 337(c) of the
    Tariff Act of 1930, to the extent that it arises out of the transaction
    or occurrence that is the subject matter of the opposing party's claim
    in the proceeding under section 337(a) of that Act.''.
                        (B) Clerical amendment.--The table of sections for
                    chapter 85 of title 28, United States Code, is amended
                    by adding at the end the following:

    ``1368. Counterclaims in unfair practices in international trade.''.

    SEC. 322. EFFECTIVE DATE.

        The amendments made by this subtitle apply--
                (1) with respect to complaints filed under section 337 of
            the Tariff Act of 1930 on or after the date on which the WTO
            Agreement enters into force with respect to the United States,
            or
                (2) in cases under such section 337 in which no complaint
            is filed, with respect to investigations initiated under such
            section on or after such date.

                              Subtitle D--Textiles

    SEC. 331. TEXTILE PRODUCT INTEGRATION.

        Not later than 120 days after the date that the WTO Agreement, as
    defined in section 2(9) of the Uruguay Round Implementation Act, enters
    into force with respect to the United States, the Secretary of Commerce
    shall publish in the Federal Register a notice containing the list of
    products to be integrated in each stage set out in Article 2(8) of the
    Agreement on Textiles and Clothing referred to in section 101(d)(4).
    After publication of such list, the list may not be changed unless
    otherwise required by statute or the international obligations of the
    United States, to correct technical errors, or to reflect
    reclassifications. Within 30 days after the publication of such list,
    the Trade Representative shall notify the list to the Textiles
    Monitoring Body established under Article 8 of the Agreement on
    Textiles and Clothing.

    SEC. 332. AMENDMENT TO SECTION 204 OF THE AGRICULTURAL ACT OF 1956.

        Section 204 of the Agricultural Act of 1956 (7 U.S.C. 1854) is
    amended by amending the second sentence to read as follows: ``In
    addition, if a multilateral agreement, including but not limited to the
    Agreement on Textiles and Clothing referred to in section 101(d)(4) of
    the Uruguay Round Implementation Act, has been or is concluded under
    the authority of this section among countries accounting for a
    significant part of world trade in the articles with respect to which
    the agreement was concluded, the President may also issue, in order to
    carry out such agreement, regulations governing the entry or withdrawal
    from warehouse of the same articles which are the products of countries
    not parties to the agreement, or countries to which the United States
    does not apply the agreement.''.

    SEC. 333. TEXTILE TRANSSHIPMENTS.

        Part V of title IV of the Tariff Act of 1930 is amended by
    inserting after section 592 the following:

    ``SEC. 592A. SPECIAL PROVISIONS REGARDING CERTAIN VIOLATIONS.

        ``(a) Publication of Names of Certain Violators.--
                ``(1) Publication.--The Secretary of the Treasury is
            authorized to publish in the Federal Register a list of the
            name of any producer, manufacturer, supplier, seller, exporter,
            or other person located outside the customs territory of the
            United States--
                        ``(A) against whom the Customs Service has issued a
                    penalty claim under section 592, and
                        ``(B) if a petition with respect to that claim has
                    been filed under section 618, against whom a final
                    decision has been issued under such section after
                    exhaustion of administrative remedies,
            citing any of the violations of the customs laws referred to in
            paragraph (2). Such list shall be published not later than
            March 31 and September 30 of each year.
                ``(2) Violations.--The violations of the customs laws
            referred to in paragraph (1) are the following:
                        ``(A) Using documentation, or providing
                    documentation subsequently used by the importer of
                    record, which indicates a false or fraudulent country
                    of origin or source of textile or apparel products.
                        ``(B) Using counterfeit visas, licenses, permits,
                    bills of lading, or similar documentation, or providing
                    counterfeit visas, licenses, permits, bills of lading,
                    or similar documentation that is subsequently used by
                    the importer of record, with respect to the entry into
                    the customs territory of the United States of textile
                    or apparel products.
                        ``(C) Manufacturing, producing, supplying, or
                    selling textile or apparel products which are falsely
                    or fraudulently labelled as to country of origin or
                    source.
                        ``(D) Engaging in practices which aid or abet the
                    transshipment, through a country other than the country
                    of origin, of textile or apparel products in a manner
                    which conceals the true origin of the textile or
                    apparel products or permits the evasion of quotas on,
                    or voluntary restraint agreements with respect to,
                    imports of textile or apparel products.
                ``(3) Removal from list.--Any person whose name has been
            included in a list published under paragraph (1) may petition
            the Secretary to be removed from such list. If the Secretary
            finds that such person has not committed any violations
            described in paragraph (2) for a period of not less than 3
            years after the date on which the person's name was so
            published, the Secretary shall remove such person from the list
            as of the next publication of the list under paragraph (2).
                ``(4) Reasonable care required for subsequent imports.--
                        ``(A) Responsibility of importers and others.--
                    After the name of a person has been published under
                    paragraph (1), the Secretary of the Treasury shall
                    require any importer of record entering, introducing,
                    or attempting to introduce into the commerce of the
                    United States textile or apparel products that were
                    either directly or indirectly produced, manufactured,
                    supplied, sold, exported, or transported by such named
                    person to show, to the satisfaction of the Secretary,
                    that such importer has exercised reasonable care to
                    ensure that the textile or apparel products are
                    accompanied by documentation, packaging, and labelling
                    that are accurate as to its origin. Such reasonable
                    care shall not include reliance solely on a source of
                    information which is the named person.
                        ``(B) Failure to exercise reasonable care.--If the
                    Customs Service determines that merchandise is not from
                    the country claimed on the documentation accompanying
                    the merchandise, the failure to exercise reasonable
                    care described in subparagraph (A) shall be considered
                    when the Customs Service determines whether the
                    importer of record is in violation of section 484(a).
        ``(b) List of High Risk Countries.--
                ``(1) List.--The President or his designee, upon the advice
            of the Secretaries of Commerce and Treasury, and the heads of
            other appropriate departments and agencies, is authorized to
            publish a list of countries in which illegal activities have
            occurred involving transshipped textile or apparel products or
            activities designed to evade quotas of the United States on
            textile or apparel products, if those countries fail to
            demonstrate a good faith effort to cooperate with United States
            authorities in ceasing such activities. Such list shall be
            published in the Federal Register not later than March 31 of
            each year. Any country that is on the list and that
            subsequently demonstrates a good faith effort to cooperate with
            United States authorities in ceasing illegal activities
            described in the first sentence shall be removed from the list,
            and such removal shall be published in the Federal Register as
            soon as practicable.
                ``(2) Reasonable care required for subsequent imports.--
                        ``(A) Responsibility of importers of record.--The
                    Secretary of the Treasury shall require any importer of
                    record entering, introducing, or attempting to
                    introduce into the commerce of the United States
                    textile or apparel products indicated, on the
                    documentation, packaging, or labelling accompanying
                    such products, to be from any country on the list
                    published under paragraph (1) to show, to the
                    satisfaction of the Secretary, that such importer,
                    consignee, or purchaser has exercised reasonable care
                    to ascertain the true country of origin of the textile
                    or apparel products.
                        ``(B) Failure to exercise reasonable care.--If the
                    Customs Service determines that merchandise is not from
                    the country claimed on the documentation accompanying
                    the merchandise, the failure to exercise reasonable
                    care described in subparagraph (A) shall be considered
                    when the Customs Service determines whether the
                    importer of record is in violation of section 484(a).
                ``(3) Definition.--For purposes of this subsection, the
            term `country' means a foreign country or territory, including
            any overseas dependent territory or possession of a foreign
            country.''.

    SEC. 334. RULES OF ORIGIN FOR TEXTILE AND APPAREL PRODUCTS.

        (a) Regulatory Authority.--The Secretary of the Treasury shall
    prescribe rules implementing the principles contained in subsection (b)
    for determining the origin of textiles and apparel products. Such rules
    shall be promulgated in final form not later than July 1, 1995.
        (b) Principles.--
                (1) In general.--Except as otherwise provided for by
            statute, a textile or apparel product, for purposes of the
            customs laws and the administration of quantitative
            restrictions, originates in a country, territory, or insular
            possession, and is the growth, product, or manufacture of that
            country, territory, or insular possession, if--
                        (A) the product is wholly obtained or produced in
                    that country, territory, or possession;
                        (B) the product is a yarn, thread, twine, cordage,
                    rope, cable, or braiding and--
                                (i) the constituent staple fibers are spun
                            in that country, territory, or possession, or
                                (ii) the continuous filament is extruded in
                            that country, territory, or possession,
                        (C) the product is a fabric, including a fabric
                    classified under chapter 59 of the HTS, and the
                    constituent fibers, filaments, or yarns are woven,
                    knitted, needled, tufted, felted, entangled, or
                    transformed by any other fabric-making process in that
                    country, territory, or possession; or
                        (D) the product is any other textile or apparel
                    product that is wholly assembled in that country,
                    territory, or possession from its component pieces.
                (2) Special rules.--Notwithstanding paragraph (1)(D)--
                        (A) the origin of a good that is classified under
                    one of the following HTS headings or subheadings shall
                    be determined under subparagraph (A), (B), or (C) of
                    paragraph (1), as appropriate: 5609, 5807, 5811,
                    6209.20.50.40, 6213, 6214, 6301, 6302, 6303, 6304,
                    6305, 6306, 6307.10, 6307.90, 6308, or 9404.90; and
                        (B) a textile or apparel product which is knit to
                    shape shall be considered to originate in, and be the
                    growth, product, or manufacture of, the country,
                    territory, or possession in which it is knit.
                (3) Multicountry rule.--If the origin of a good cannot be
            determined under paragraph (1) or (2), then that good shall be
            considered to originate in, and be the growth, product, or
            manufacture of--
                        (A) the country, territory, or possession in which
                    the most important assembly or manufacturing process
                    occurs, or
                        (B) if the origin of the good cannot be determined
                    under subparagraph (A), the last country, territory, or
                    possession in which important assembly or manufacturing
                    occurs.
                (4) Components cut in the united states.--(A) The value of
            a component that is cut to shape (but not to length, width, or
            both) in the United States from foreign fabric and exported to
            another country, territory, or insular possession for assembly
            into an article that is then returned to the United States--
                        (i) shall not be included in the dutiable value of
                    such article, and
                        (ii) may be applied toward determining the
                    percentage referred to in General Note 7(b)(i)(B) of
                    the HTS, subject to the limitation provided in that
                    note.
                (B) No article (except a textile or apparel product)
            assembled in whole of components described in subparagraph (A),
            or of such components and components that are products of the
            United States, in a beneficiary country as defined in General
            Note 7(a) of the HTS shall be treated as a foreign article, or
            as subject to duty if--
                        (i) the components after exportation from the
                    United States, and
                        (ii) the article itself before importation into the
                    United States
            do not enter into the commerce of any foreign country other
            than such a beneficiary country.
                (5) Exception for united states-israel free trade
            agreement.--This section shall not affect, for purposes of the
            customs laws and administration of quantitative restrictions,
            the status of goods that, under rulings and administrative
            practices in effect immediately before the enactment of this
            Act, would have originated in, or been the growth, product, or
            manufacture of, a country that is a party to an agreement with
            the United States establishing a free trade area, which entered
            into force before January 1, 1987. For such purposes, such
            rulings and administrative practices that were applied,
            immediately before the enactment of this Act, to determine the
            origin of textile and apparel products covered by such
            agreement shall continue to apply after the enactment of this
            Act, and on and after the effective date described in
            subsection (c), unless such rulings and practices are modified
            by the mutual consent of the parties to the agreement.
        (c) Effective Date.--This section shall apply to goods entered, or
    withdrawn from warehouse, for consumption on or after July 1, 1996,
    except that this section shall not apply to goods if--
                (1) the contract for the sale of such goods to the United
            States is entered into before July 20, 1994;
                (2) all of the material terms of sale in such contract,
            including the price and quantity of the goods, are fixed and
            determinable before July 20, 1994;
                (3) a copy of the contract is filed with the Commissioner
            of Customs within 60 days after the date of the enactment of
            this Act, together with a certification that the contract meets
            the requirements of paragraphs (1) and (2); and
                (4) the goods are entered, or withdrawn from warehouse, for
            consumption on or before January 1, 1998.
    The origin of goods to which this section does not apply shall be
    determined in accordance with the applicable rules in effect on July
    20, 1994.

    SEC. 335. EFFECTIVE DATE.

        Except as provided in section 334, this subtitle and the amendments
    made by this subtitle take effect on the date on which the WTO
    Agreement enters into force with respect to the United States.

                       Subtitle E--Government Procurement

    SEC. 341. MONITORING AND ENFORCEMENT OF THE AGREEMENT ON GOVERNMENT
                  PROCUREMENT.

        (a) In General.--Section 305(f)(2) of the Trade Agreements Act of
    1979 (19 U.S.C. 2515(f)(2)) is amended--
                (1) in the matter preceding subparagraph (A), by striking
            ``a year'' and inserting ``the 18 months'',
                (2) by striking ``or'' at the end of subparagraph (B),
                (3) by redesignating subparagraph (C) as subparagraph (D),
            and
                (4) by inserting after subparagraph (B), the following new
            subparagraph:
                        ``(C) the procedures result in a determination
                    providing a specific period of time for the other
                    participant to bring its practices into compliance with
                    the Agreement, or''.
        (b) Sanctions After Dispute Resolution Fails.--
                (1) Sanctions.--Paragraph (3) of section 305(f) of such Act
            (19 U.S.C. 2515(f)(3)) is amended to read as follows:
                ``(3) Sanctions after dispute resolution fails.--
                        ``(A) Failures resulting in sanctions.--If--
                                ``(i) within 18 months from the date
                            dispute settlement procedures are initiated
                            with a signatory country pursuant to this
                            section--
                                        ``(I) such procedures are not
                                    concluded, or
                                        ``(II) the country has not met the
                                    requirements of subparagraph (A) or (B)
                                    of paragraph (2), or
                                ``(ii) the period of time provided for
                            pursuant to paragraph (2)(C) has expired and
                            procedures for suspending concessions under the
                            Agreement have been completed,
                    then the sanctions described in subparagraph (B) shall
                    be imposed.
                        ``(B) Sanctions.--
                                ``(i) In general.--If subparagraph (A)
                            applies to any signatory country--
                                        ``(I) the signatory country shall
                                    be considered as a signatory not in
                                    good standing of the Agreement and the
                                    prohibition on procurement contained in
                                    section 4 of the Act of March 3, 1933
                                    (41 U.S.C. 10b-1) shall apply to such
                                    country, and
                                        ``(II) the President shall revoke
                                    the waiver of discriminatory purchasing
                                    requirements granted to the signatory
                                    country pursuant to section 301(a).
                                ``(ii) Time sanctions are imposed.--Any
                            sanction--
                                        ``(I) described in clause (i)(I)
                                    shall apply from the date that is the
                                    last day of the 18-month period
                                    described in subparagraph (A)(i) or, in
                                    the case of paragraph (2)(C), from the
                                    date procedures for suspending
                                    concessions under the Agreement have
                                    been completed, and
                                        ``(II) described in clause (i)(II)
                                    shall apply beginning on the day after
                                    the date described in subclause (I).''.
                (2) Conforming amendment.--Paragraph (4) of section 305(f)
            of such Act (19 U.S.C. 2515(f)(4)) is amended by striking
            ``subparagraph (A) or (B) of paragraph (3)'' and inserting
            ``subclause (I) or (II) of paragraph (3)(B)(i)''.
        (c) Report to Congress.--
                (1) Section 305(d)(2) of the Trade Agreements Act of 1979
            (19 U.S.C. 2515(d)(2)) is amended by adding at the end the
            following new subparagraphs:
                        ``(D)(i) are not signatories to the Agreement;
                        ``(ii) fail to apply transparent and competitive
                    procedures to its government procurement equivalent to
                    those in the Agreement; and
                        ``(iii) whose products or services are acquired in
                    significant amounts by the United States Government; or
                        ``(E)(i) are not signatories to the Agreement;
                        ``(ii) fail to maintain and enforce effective
                    prohibitions on bribery and other corrupt practices in
                    connection with government procurement; and
                        ``(iii) whose products or services are acquired in
                    significant amounts by the United States Government.''.
                (2) Section 305(d)(3)(C) of the Trade Agreements Act of
            1979 (19 U.S.C. 2515(d)(3)(C)) is amended by adding before the
            period at the end the following: ``, including the failure to
            maintain and enforce effective prohibitions on bribery and
            other corrupt practices in connection with government
            procurement''.

    SEC. 342. CONFORMING AMENDMENTS.

        (a) Waiver of Discriminatory Purchasing Requirements Regarding
    Purchases of Civil Aircraft.--Section 303 of the Trade Agreements Act
    of 1979 (19 U.S.C. 2513) is amended by inserting ``referred to in
    section 2(c) and approved under section 2(a)'' after ``Civil
    Aircraft''.
        (b) Expansion of Coverage of the Agreement.--Section 304 of the
    Trade Agreements Act of 1979 (19 U.S.C. 2514) is amended--
                (1) in subsections (a) and (c) by striking ``part IX,
            paragraph 6'' and inserting ``article XXIV(7)'';
                (2) in subsection (c) by striking ``part VI, paragraph 9''
            and inserting ``article XIX(5)''; and
                (3) in subsection (e) by striking ``date of enactment of
            this Act'' and inserting ``date it enters into force with
            respect to the United States''.
        (c) Annual Report on Foreign Discrimination.--Section 305(d) of the
    Trade Agreements Act of 1979 (19 U.S.C. 2515(d)) is amended by striking
    out ``April 30, 1990, and annually on April 30 thereafter,'' and
    inserting ``April 30 of each year,''.
        (d) Labor Surplus Area Studies.--Section 306 of the Trade
    Agreements Act of 1979 (19 U.S.C. 2516), and the item relating to such
    section in the table of contents for such Act, are repealed.
        (e) Availability of Information to Congressional Advisors.--Section
    307 of the Trade Agreements Act of 1979 (19 U.S.C. 2517) is amended by
    striking ``part VI, paragraph 9,'' and inserting ``article XIX(5)''.
        (f) Definitions.--Section 308 of the Trade Agreements Act of 1979
    (19 U.S.C. 2518) is amended--
                (1) in paragraph (1) by striking ``section 2(c) of this
            Act'' and inserting ``section 101(d)(17) of the Uruguay Round
            Agreements Act''; and
                (2) in paragraph (4)--
                        (A) in subparagraph (C) by striking ``having a
                    contract value'' and all that follows through the end
                    of the subparagraph and inserting ``for which the
                    United States is obligated to waive Buy National
                    restrictions under--
                                ``(i) the Agreement on the Establishment of
                            a Free Trade Area between the Government of the
                            United States of America and the Government of
                            Israel, regardless of the thresholds provided
                            for in the Agreement (as defined in paragraph
                            (1)), or
                                ``(ii) any subsequent agreement between the
                            United States and Israel which lowers on a
                            reciprocal basis the applicable threshold for
                            entities covered by the Agreement.''; and
                        (B) in subparagraph (D) by striking ``GATT'' the
                    first place it appears and all that follows through the
                    end of the subparagraph and inserting ``the Agreement
                    (as defined in paragraph (1)), but for the thresholds
                    provided for in the Agreement.''.
        (g) Conforming Amendments.--Section 401 of the Rural
    Electrification Act of 1938 (7 U.S.C. 903 note) is amended--
                (1) by striking ``, Mexico, or Canada'' each place that it
            appears and inserting ``or in any eligible country''; and
                (2) by adding at the end the following: ``For purposes of
            this section, an `eligible country' is any country that applies
            with respect to the United States an agreement ensuring
            reciprocal access for United States products and services and
            United States suppliers to the markets of that country, as
            determined by the United States Trade Representative.''.

    SEC. 343. RECIPROCAL COMPETITIVE PROCUREMENT PRACTICES.

        (a) Applicability.--Section 302(a) of the Trade Agreements Act of
    1979 (19 U.S.C. 2512(a)) is amended to read as follows:
        ``(a) Authority To Bar Procurement From Non-Designated Countries.--
                ``(1) In general.--Subject to paragraph (2), the President,
            in order to encourage additional countries to become parties to
            the Agreement and to provide appropriate reciprocal competitive
            government procurement opportunities to United States products
            and suppliers of such products--
                        ``(A) shall, with respect to procurement covered by
                    the Agreement, prohibit the procurement, after the date
                    on which any waiver under section 301(a) first takes
                    effect, of products--
                                ``(i) which are products of a foreign
                            country or instrumentality which is not
                            designated pursuant to section 301(b), and
                                ``(ii) which would otherwise be eligible
                            products; and
                        ``(B) may, with respect to procurement covered by
                    the Agreement, take such other actions within the
                    President's authority as the President deems necessary.
                ``(2) Exception.--Paragraph (1) shall not apply in the case
            of procurements for which--
                        ``(A) there are no offers of products or services
                    of the United States or of eligible products; or
                        ``(B) the offers of products or services of the
                    United States or of eligible products are insufficient
                    to fulfill the requirements of the United States
                    Government.''.
        (b) Additional Waiver Authority.--Section 302(b) of the Trade
    Agreements Act of 1979 (19 U.S.C. 2512(b)) is amended--
                (1) by amending paragraph (1) to read as follows:
                ``(1) waive the prohibition required by subsection (a)(1)
            on procurement of products of a foreign country or
            instrumentality which has not yet become a party to the
            Agreement but--
                        ``(A) has agreed to apply transparent and
                    competitive procedures to its government procurement
                    equivalent to those in the Agreement, and
                        ``(B) maintains and enforces effective prohibitions
                    on bribery and other corrupt practices in connection
                    with its government procurement;''; and
                (2) by adding after paragraph (3) the following:
    ``Before exercising the waiver authority under paragraph (1), the
    President shall consult with the appropriate private sector advisory
    committees established under section 135 of the Trade Act of 1974 and
    with the appropriate committees of the Congress.''.
        (c) Conforming Amendment.--Section 305(g) of the Trade Agreements
    Act of 1979 (19 U.S.C. 2515(g)) is amended--
                (1) in paragraph (1)--
                        (A) by striking ``(B) or (C)'' and inserting ``(B),
                    (C), (D), or (E)''; and
                        (B) by striking ``their discriminatory procurement
                    practices'' and inserting ``the practices regarding
                    government procurement identified under subparagraph
                    (B)(ii), (C)(ii), (D)(ii), or (E)(ii) (as the case may
                    be)''; and
                (2) in paragraph (3) by striking ``discrimination
            identified pursuant to subsection (d)(2)(B) or (C)'' and
            inserting ``the practices regarding government procurement
            identified under subparagraph (B)(ii), (C)(ii), (D)(ii), or
            (E)(ii) (as the case may be)''.

    SEC. 344. EFFECTIVE DATE.

        (a) In General.--Except as provided in subsection (b), the
    amendments made by this subtitle take effect on the date on which the
    Agreement on Government Procurement referred to in section 101(d)(17)
    enters into force with respect to the United States.
        (b) Section 342(g).--The amendments made by section 342(g) take
    effect on the date on which the WTO Agreement enters into force with
    respect to the United States.

                    Subtitle F--Technical Barriers to Trade

    SEC. 351. TECHNICAL BARRIERS TO TRADE.

        (a) References.--All references in this section are to title IV of
    the Trade Agreements Act of 1979 (19 U.S.C. 2531 et seq.) unless
    otherwise specified.
        (b) Section 401.--Section 401 is amended--
                (1) by striking ``Nothing'' and inserting ``(b) Unnecessary
            Obstacles.--Nothing''; and
                (2) by inserting after the section heading the following:
        ``(a) No Bar To Engaging in Standards Activity.--Nothing in this
    title may 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.''.
        (c) Section 402.--Section 402(4) is amended--
                (1) by striking ``Certification access'' in the paragraph
            heading and inserting ``Access'';
                (2) by striking ``certification system'' and inserting
            ``conformity assessment procedure''; and
                (3) by striking ``certification under that system'' and
            inserting ``an assessment of conformity and the mark of the
            system, if any''.
        (d) Section 414.--Section 414(b)(1) is amended--
                (1) by inserting ``(A)'' after ``relating to'';
                (2) by striking ``certification systems'' and inserting
            ``technical regulations, conformity assessment procedures,'';
                (3) by striking ``such standards, systems'' and inserting
            ``such standards, technical regulations, conformity assessment
            procedures,''; and
                (4) after ``local'' by inserting ``and (B) the membership
            and participation of Federal, State, or local government bodies
            or private bodies in the United States in international and
            regional standardizing bodies and conformity assessment
            systems, as well as in bilateral and multilateral arrangements
            concerning standards-related activities''.
        (e) Definitions.--Section 451 is amended--
                (1) so that paragraph (1) reads as follows:
                ``(1) Agreement.--The term `Agreement' means the Agreement
            on Technical Barriers to Trade referred to in section 101(d)(5)
            of the Uruguay Round Agreements Act.'';
                (2) so that paragraph (2) reads as follows:
                ``(2) Conformity assessment procedure.--The term
            `conformity assessment procedure' means any procedure used,
            directly or indirectly, to determine that relevant requirements
            in technical regulations or standards are fulfilled.'';
                (3) in paragraph (4), by striking ``certification system''
            and inserting ``conformity assessment procedure'' each place it
            occurs;
                (4) so that paragraph (6)(A) reads as follows:
                        ``(A) the membership of which is open to
                    representatives, whether public or private, of the
                    United States and at least all Members.'';
                (5) in paragraph (7), by striking ``certification system''
            and inserting ``conformity assessment procedure'';
                (6) so that paragraph (8) reads as follows:
                ``(8) Member.--The term `Member' means a WTO member as
            defined in section 2(10) of the Uruguay Round Agreements
            Act.'';
                (7) so that paragraph (13) reads as follows:
                ``(13) Standard.--The term `standard' means a document
            approved by a recognized body, that provides, for common and
            repeated use, rules, guidelines, or characteristics for
            products or related processes and production methods, with
            which compliance is not mandatory. Such term may also include
            or deal exclusively with terminology, symbols, packaging,
            marking, or labeling requirements as they apply to a product,
            process, or production method.'';
                (8) in paragraph (14), by striking ``or any certification
            system'' and inserting ``, technical regulation, or conformity
            assessment procedure''; and
                (9) by redesignating paragraph (17) as paragraph (18) and
            inserting after paragraph (16) the following:
                ``(17) Technical regulation.--The term `technical
            regulation' means a document which lays down product
            characteristics or their related processes and production
            methods, including the applicable administrative provisions,
            with which compliance is mandatory. Such term may also include
            or deal exclusively with terminology, symbols, packaging,
            marking, or labeling requirements as they apply to a product,
            process, or production method.''.
        (f) Reports to Congress.--Section 453 is amended by inserting
    ``through 2001'' after ``succeeding 3-year period''.
        (g) Effective Date.--Title IV of the Trade Agreements Act of 1979
    (19 U.S.C. 2531 et seq.) is amended by striking sec-tion 454.

    SEC. 352. EFFECTIVE DATE.

        This subtitle and the amendments made by this subtitle take effect
    on the date on which the WTO Agreement enters into force with respect
    to the United States.

                    TITLE IV--AGRICULTURE-RELATED PROVISIONS

                            Subtitle A--Agriculture

                             PART I--MARKET ACCESS

    SEC. 401. SECTION 22 AMENDMENTS.

        (a) Amendment to Section 22.--
                (1) Generally.--Subsection (f) of section 22 of the
            Agricultural Adjustment Act (7 U.S.C. 624(f)), reenacted with
            amendments by the Agricultural Marketing Agreement Act of 1937,
            is amended to read as follows:
        ``(f) No quantitative limitation or fee shall be imposed under this
    section with respect to any article that is the product of a WTO member
    (as defined in section 2(10) of the Uruguay Round Agreements Act).''.
                (2) Effective date.--The amendment made by paragraph (1)
            shall take effect on the date of entry into force of the WTO
            Agreement with respect to the United States, except that with
            respect to wheat, that amendment shall take effect on the later
            of such date or September 12, 1995.
        (b) Conforming Amendments.--
                (1) Section 202 of the agricultural act of 1956.--Section
            202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is
            amended--
                        (A) by striking subsection (a); and
                        (B) in subsection (b), by striking ``(b)''.
                (2) Cotton import quotas.--Section 103B of the Agricultural
            Act of 1949 (7 U.S.C. 1444-2) is amended--
                        (A) in subsection (a)(5)(F)(i)--
                                (i) by striking ``this section'' and
                            inserting ``the Uruguay Round Agreements Act'';
                            and
                                (ii) by striking ``limited global'';
                        (B) in subsection (a)(5)(F)(iv), by striking
                    ``special quota period has'' and inserting ``quota
                    period has'';
                        (C) by adding at the end of subsection (a)(5)(F)
                    the following:
                                ``(v) Preferential tariff treatment.--The
                            quantity under a special import quota shall be
                            considered to be an in-quota quantity for
                            purposes of section 213(d) of the Caribbean
                            Basin Economic Recovery Act (19 U.S.C.
                            2703(d)), section 204 of the Andean Trade
                            Preference Act (19 U.S.C. 3203), section 503(d)
                            of the Trade Act of 1974 (19 U.S.C. 2463(d)),
                            and General Note 3(a)(iv) to the HTS.
                                ``(vi) Definition.--As used in this
                            subparagraph, the term `special import quota'
                            means a quantity of imports that is not subject
                            to the over-quota tariff rate of a tariff-rate
                            quota.''; and
                        (D) in subsection (n)--
                                (i) in the subsection heading, by striking
                            ``Special'';
                                (ii) in paragraph (1), by striking ``this
                            section'' and inserting ``the Uruguay Round
                            Agreements Act'';
                                (iii) in paragraph (1), by striking
                            ``special'' each place it appears;
                                (iv) by redesignating paragraph (1)(C) as
                            paragraph (1)(D);
                                (v) by inserting after subparagraph (B) of
                            paragraph (1) the following:
                        ``(C) Preferential tariff treatment.--The quantity
                    under a limited global import quota shall be considered
                    to be an in-quota quantity for purposes of section
                    213(d) of the Caribbean Basin Economic Recovery Act (19
                    U.S.C. 2703(d)), section 204 of the Andean Trade
                    Preference Act (19 U.S.C. 3203), section 503(d) of the
                    Trade Act of 1974 (19 U.S.C. 2463(d)), and General Note
                    3(a)(iv) to the HTS.''; and
                                (vi) in paragraph (1)(D) (as redesignated
                            by clause (iv)), by adding at the end the
                            following:
                                ``(iii) Limited global import quota.--As
                            used in this subsection, the term `limited
                            global import quota' means a quantity of
                            imports that is not subject to the over-quota
                            tariff rate of a tariff-rate quota.''; and
                                (vii) in paragraph (2), by striking
                            ``special quota period may'' and inserting
                            ``quota period may''.

    SEC. 402. CHEESE AND CHOCOLATE CRUMB IMPORTS.

        (a) Repeal of Sections 701 and 703.--Sections 701 and 703 of the
    Trade Agreements Act of 1979 (93 Stat. 268) are hereby repealed.
        (b) Presidential Action.--Section 702(d)(1) (93 Stat. 268) of the
    Trade Agreements Act of 1979 is amended to read as follows:
                ``(1) In general.--Not later than 7 days after receiving a
            report under subsection (c)(3) with respect to an article of
            cheese subject to an in-quota rate of duty (or not later than 3
            days after receiving a report under paragraph (2) in any case
            in which such paragraph applies), the President shall proclaim
            the imposition of a fee on the importation of such article from
            the country involved in such amount (not to exceed the amount
            of the subsidy determined under subsection (b)(2)(B)) as may be
            necessary to ensure that the duty-paid wholesale price of such
            article will not be less than the domestic wholesale market
            price of similar articles produced in the United States, and
            shall direct the Commissioner of Customs to administer and
            enforce such fee. Any such fee imposed shall be in addition to
            any customs duty or other fee imposed by law.''.
        (c) Technical and Conforming Amendments.--
                (1) Section 702 of the Trade Agreements Act of 1979 is
            amended by striking ``of quota cheese'' each place it appears
            and inserting ``of cheese subject to an in-quota rate of
            duty''.
                (2) Section 702(c)(2) of such Act is amended--
                        (A) by striking ``the Special Representative for
                    Trade Negotiations'' and inserting ``the United States
                    Trade Representative'', and
                        (B) by striking ``The Special Representative'' and
                    inserting ``The United States Trade Representative''.
                (3) Subsections (c)(3)(B) and (e) of section 702 of such
            Act are each amended by striking ``or quantitative
            limitation''.
                (4) Section 702(f) of such Act is amended--
                        (A) by inserting ``(as in effect on the day before
                    the effective date of title II of the Uruguay Round
                    Agreements Act)'' after ``Tariff Act of 1930'', and
                        (B) by striking ``under title I of this Act'' and
                    inserting ``under title VII of the Tariff Act of
                    1930''.
                (5) Section 702(g)(2) of such Act is amended by striking
            ``or quantitative limitations''.
                (6) Section 702(h) of such Act is amended by adding at the
            end the following new paragraphs:
                ``(4) Cheese subject to an in-quota rate of duty.--The term
            `cheese subject to an in-quota rate of duty' means the articles
            and the quantities of such articles provided for in the
            Additional U. S. Notes 14 through 23 of chapter 4 of Schedule
            XX (as defined in section 2(5) of the Uruguay Round Agreements
            Act).
                ``(5) Secretary.--The term `Secretary' means the Secretary
            of Agriculture.''.

    SEC. 403. MEAT IMPORT ACT.

        The Meat Import Act of 1979 (19 U.S.C. 2253 note) is repealed.

    SEC. 404. ADMINISTRATION OF TARIFF-RATE QUOTAS.

        (a) Orderly Marketing.--In implementing the tariff-rate quotas set
    out in Schedule XX for the entry, or withdrawal from warehouse, for
    consumption of goods in the United States, the President shall take
    such action as may be necessary to ensure that imports of agricultural
    products do not disrupt the orderly marketing of commodities in the
    United States.
        (b) Inadequate Supply.--Where imports of an agricultural product
    are subject to a tariff-rate quota, and where the President determines
    and proclaims that the supply of the same or directly competitive or
    substitutable agricultural product will be inadequate, because of a
    natural disaster, disease, or major national market disruption, to meet
    domestic demand at reasonable prices, the President may temporarily
    increase the quantity of imports of the agricultural product that is
    subject to the in-quota rate of duty established under the tariff-rate
    quota.
        (c) Monitoring.--The Secretary of Agriculture shall monitor the
    domestic supply of agricultural products subject to a tariff-rate quota
    as the Secretary considers appropriate and shall advise the President
    when the domestic supply of the products and substitutable products
    combined with the estimated imports of the products under the tariff-
    rate quota may be inadequate to meet domestic demand at reasonable
    prices.
        (d) Coverage of Tariff-Rate Quotas.--
                (1) Exclusions.--The President may, subject to terms and
            conditions determined appropriate by the President, provide
            that the entry, or withdrawal from warehouse, for consumption
            in the United States of an agricultural product shall not be
            subject to the over-quota rate of duty established under a
            tariff-rate quota if the agricultural product--
                        (A) is imported by, or for the account of, any
                    agency of the United States or of any foreign embassy;
                        (B) is imported as a sample for taking orders, for
                    the personal use of the importer, or for the testing of
                    equipment;
                        (C) is a commercial sample or is entered for
                    exhibition, display, or sampling at a trade fair or for
                    research; or
                        (D) is a blended syrup provided for in subheadings
                    1702.20.28, 1702.30.28, 1702.40.28, 1702.60.28,
                    1702.90.58, 1806.20.92, 1806.20.93, 1806.90.38,
                    1806.90.40, 2101.10.38, 2101.20.38, 2106.90.38, or
                    2106.90.67 of Schedule XX, if entered from a foreign
                    trade zone by a foreign trade zone user whose
                    facilities were in operation on June 1, 1990, to the
                    extent that the annual quantity entered into the
                    customs territory from such zone does not contain a
                    quantity of sugar of nondomestic origin greater than
                    the quantity authorized by the Foreign Trade Zones
                    Board for processing in that zone during calendar year
                    1985.
                (2) Reclassification.--Subject to the consultation and
            layover requirements of section 115, the President may proclaim
            a modification to the coverage of a tariff-rate quota for any
            agricultural product if the President determines the
            modification is necessary or appropriate to conform the tariff-
            rate quota to Schedule XX as a result of a reclassification of
            any item by the Secretary of the Treasury.
                (3) Allocation.--The President may allocate the in-quota
            quantity of a tariff-rate quota for any agricultural product
            among supplying countries or customs areas and may modify any
            allocation as determined appropriate by the President.
                (4) Bilateral agreement.--The President may proclaim an
            increase in the tariff-rate quota for beef if the President
            determines that an increase is necessary to implement--
                        (A) the March 24, 1994, agreement between the
                    United States and Argentina; or
                        (B) the March 9, 1994, agreement between the United
                    States and Uruguay.
                (5) Continuation of sugar headnote.--The President is
            authorized to proclaim additional United States note 3 to
            chapter 17 of the HTS, and to proclaim the modifications to the
            note, as determined appropriate by the President to reflect
            Schedule XX.
        (e) Conforming Amendments.--
                (1) Section 213 of the caribbean basin economic recovery
            act.--Section 213(d) of the Caribbean Basin Economic Recovery
            Act (19 U.S.C. 2703(d)) is amended to read as follows:
        ``(d) Tariff-Rate Quotas.--No quantity of an agricultural product
    subject to a tariff-rate quota that exceeds the in-quota quantity shall
    be eligible for duty-free treatment under this title.''.
                (2) Section 204 of the andean trade preference act.--
            Section 204 of the Andean Trade Preference Act (19 U.S.C. 3203)
            is amended by adding at the end the following new subsection:
        ``(g) Tariff-Rate Quotas.--No quantity of an agricultural product
    subject to a tariff-rate quota that exceeds the in-quota quantity shall
    be eligible for duty-free treatment under this Act.''.
                (3) GSP.--Section 503 of the Trade Act of 1974 (19 U.S.C.
            2463) is amended by adding at the end the following new
            subsection:
        ``(d) Tariff-Rate Quotas.--No quantity of an agricultural product
    subject to a tariff-rate quota that exceeds the in-quota quantity shall
    be eligible for duty-free treatment under this title.''.
                (4) General note 3(a) to the hts.--General Note 3(a)(iv) to
            the HTS is amended by adding at the end the following:
                        ``(F) No quantity of an agricultural product that
                    is subject to a tariff-rate quota that exceeds the in-
                    quota quantity shall be eligible for duty-free
                    treatment under this paragraph.''.
                (5) Duty drawback.--
                        (A) Generally.--Section 313 of the Tariff Act of
                    1930 (19 U.S.C. 1313) is amended by adding at the end
                    the following new subsection:
        ``(w) Limited Applicability for Certain Agricultural Products.--No
    drawback shall be available with respect to an agricultural product
    subject to the over-quota rate of duty established under a tariff-rate
    quota, except pursuant to subsection (j)(1).''.
                        (B) Effective date.--The amendment made by
                    subparagraph (A) shall take effect on the earlier of
                    the date of entry into force of the WTO Agreement with
                    respect to the United States or January 1, 1995.
                (6) Restrictions on imported peanuts.--Paragraph (6) of
            section 358e(f) of the Agricultural Adjustment Act of 1938 (7
            U.S.C. 1359a(f)(6)) is amended by inserting after ``issues a
            proclamation'' the following: ``under section 404(b) of the
            Uruguay Round Agreements Act expanding the quantity of peanuts
            subject to the in-quota rate of duty under a tariff-rate quota,
            or''.

    SEC. 405. SPECIAL AGRICULTURAL SAFEGUARD AUTHORITY.

        (a) Determination of Trigger Levels.--Consistent with Article 5 as
    determined by the President, the President shall cause to be published
    in the Federal Register--
                (1) the list of special safeguard agricultural goods not
            later than the date of entry into force of the WTO Agreement
            with respect to the United States; and
                (2) for each special safeguard agricultural good--
                        (A) the trigger level specified in subparagraph
                    1(a) of Article 5, on an annual basis;
                        (B) the trigger price specified in subparagraph
                    1(b) of Article 5; and
                        (C) the relevant period.
        (b) Determination of Safeguard.--If the President determines with
    respect to a special safeguard agricultural good that it is appropriate
    to impose--
                (1) the price-based safeguard in accordance with
            subparagraph 1(a) of Article 5; or
                (2) the volume-based safeguard in accordance with
            subparagraph 1(b) of Article 5,
    the President shall, consistent with Article 5 as determined by the
    President, determine the amount of the duty to be imposed, the period
    such duty shall be in effect, and any other terms and conditions
    applicable to the duty.
        (c) Imposition of Safeguard.--The President shall direct the
    Secretary of the Treasury to impose a duty on a special safeguard
    agricultural good entered, or withdrawn from warehouse, for consumption
    in the United States in accordance with a determination made under
    subsection (b).
        (d) No Simultaneous Safeguard.--A duty may not be in effect for a
    special safeguard agricultural good pursuant to this section during any
    period in which such good is the subject of any action proclaimed
    pursuant to section 202 or 203 of the Trade Act of 1974 (19 U.S.C. 2252
    or 2253).
        (e) Exclusion of NAFTA Countries.--The President may exempt from
    any duty imposed under this section any good originating in a NAFTA
    country (as determined in accordance with section 202 of the North
    American Free Trade Agreement Implementation Act (19 U.S.C. 3332)).
        (f) Advice of Secretary of Agriculture.--The Secretary of
    Agriculture shall advise the President on the implementation of this
    section.
        (g) Termination Date.--This section shall cease to be effective on
    the date, as determined by the President, that the special safeguard
    provisions of Article 5 are no longer in force with respect to the
    United States.
        (h) Definitions.--For purposes of this section--
                (1) the term ``Article 5'' means Article 5 of the Agreement
            on Agriculture described in section 101(d)(2);
                (2) the term ``relevant period'' means the period
            determined by the President to be applicable to a special
            safeguard agricultural good for purposes of applying this
            section; and
                (3) the term ``special safeguard agricultural good'' means
            an agricultural good on which an additional duty may be imposed
            pursuant to the special safeguard provisions of Article 5.

                                PART II--EXPORTS

    SEC. 411. EXPORT PROGRAMS.

        (a) Export Enhancement Program.--
                (1) Short title.--This subsection may be cited as the
            ``Export Enhancement Program Amendments of 1994''.
                (2) Title heading.--Title III of the Agricultural Trade Act
            of 1978 (7 U.S.C. 5651 et seq.) is amended by striking the
            title heading and inserting the following:

                   ``TITLE III--EXPORT ENHANCEMENT PROGRAM''.

                (3) General authority.--Subsection (a) of section 301 of
            such Act (7 U.S.C. 5651(a)) is amended to read as follows:
        ``(a) In General.--The Commodity Credit Corporation shall carry out
    an export enhancement program in accordance with this section to
    encourage the commercial sale of United States agricultural commodities
    in world markets at competitive prices. The program shall be carried
    out in a market sensitive manner. Activities under the program shall
    not be limited to responses to unfair trade practices.''.
                (4) Funding.--Section 301 of such Act (7 U.S.C. 5651) is
            amended--
                        (A) in subsection (e), by striking ``1995'' and
                    inserting ``2001''; and
                        (B) by adding at the end the following:
        ``(g) Consistency With International Obligations.--Notwithstanding
    any other provision of this section, the Commodity Credit Corporation
    shall administer and carry out the program authorized by this section
    in a manner consistent, as determined by the President, with the
    obligations undertaken by the United States set forth in the Uruguay
    Round Agreements.''.
        (b) Dairy Export Incentive Program.--Section 153(a) of the Food
    Security Act of 1985 (15 U.S.C. 713a-14) is amended by striking
    ``1995'' and inserting ``2001''.
        (c) Export Sales of Dairy Products.--Subsection (a) of section 1163
    of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1731
    note) is amended to read as follows:
        ``(a) In each fiscal year, the Secretary of Agriculture may sell
    dairy products for export, at such prices as the Secretary determines
    appropriate, in a quantity and allocated as determined by the
    Secretary, consistent with the obligations undertaken by the United
    States set forth in the Uruguay Round Agreements, if the disposition of
    the commodities will not interfere with the usual marketings of the
    United States nor disrupt world prices of agricultural commodities and
    patterns of commercial trade.''.
        (d) Market Promotion Program.--(1) Section 203(c) of the
    Agricultural Trade Act of 1978 (7 U.S.C. 5623(c)) is amended--
                (A) by striking paragraph (2);
                (B) by striking ``Participation.--'' and all that follows
            through ``To'' in paragraph (1) and inserting
            ``Participation.--To'';
                (C) by redesignating subparagraphs (A), (B), and (C) as
            paragraphs (1), (2), and (3), respectively; and
                (D) by aligning the margins of paragraphs (1), (2), and (3)
            (as so redesignated) so as to align with the margin of
            paragraph (1) of subsection (d).
        (2) Section 203(f)(2) of such Act (7 U.S.C. 5623(f)(2)) is
    amended--
                (A) by striking subparagraph (D);
                (B) by inserting ``or'' at the end of subparagraph (C); and
                (C) by redesignating subparagraph (E) as subpara graph (D).
        (e) Food Aid.--
                (1) Policy.--In light of the Uruguay Round Agreement on
            Agriculture and the Ministerial Decision on Measures Concerning
            the Possible Negative Effects of the Reform Program on Least-
            Developed and Net-Food Importing Developing Countries, the
            United States reaffirms the commitment of the United States to
            providing food aid to developing countries.
                (2) Sense of congress.--It is the sense of Congress that--
                        (A) the President should initiate consultations
                    with other donor nations to consider appropriate levels
                    of food aid commitments to meet the legitimate needs of
                    developing countries; and
                        (B) the United States should increase its
                    contribution of bona fide food assistance to developing
                    countries consistent with the Agreement on Agriculture.

    SEC. 412. OTHER CONFORMING AMENDMENTS.

        (a) Public Law 98-332.--Section 106 of Public Law 98-332 (98 Stat.
    287), is repealed.
        (b)  Agriculture, Rural Development, and Related Agencies
    Appropriations Act, 1984.--Section 625(A) of the Agriculture, Rural
    Development, and Related Agencies Appropriations Act, 1984, as given
    the force of law by section 101(d) of Public Law 98-151 (97 Stat.
    1853), is repealed.
        (c) Agricultural Act of 1956.--Section 203 of the Agriculture Act
    of 1956 (7 U.S.C. 1853) is repealed.

                           PART III--OTHER PROVISIONS

    SEC. 421. AUTHORITY FOR CERTAIN ACTIONS UNDER ARTICLE XXVIII.

        (a) In General.--In the application of section 125(c) of the Trade
    Act of 1974 (19 U.S.C. 2135) with respect to any item provided for in
    subheadings 2401.10.60, 2401.20.30, 2401.20.80, 2401.30.30, 2401.30.60,
    2401.30.90, 2403.10.00, 2403.91.40, or 2403.99.00 of the HTS, ``350''
    shall be substituted for ``20'' where it appears in such section.
        (b) Effective Date.--This section shall take effect on the date of
    the enactment of this Act.

    SEC. 422. TOBACCO IMPORTS.

        (a) Domestic Marketing Assessment.--Section 320C of the
    Agricultural Adjustment Act of 1938 (7 U.S.C. 1314i) is amended by
    adding at the end the following new subsection:
        ``(g) Effective Date.--This section shall be effective only for
    calendar year 1994.''.
        (b) Budget Deficit Assessment.--
                (1) Importer assessments.--Section 106(g) of the
            Agricultural Act of 1949 (7 U.S.C. 1445(g)) is amended--
                        (A) by striking paragraph (1) and inserting the
                    following new paragraph:
                ``(1) Effective only for each of the 1994 through 1998
            crops of tobacco for which price support is made available
            under this Act, each producer and purchaser of such tobacco,
            and each importer of the same kind of tobacco, shall remit to
            the Commodity Credit Corporation a nonrefundable marketing
            assessment in an amount equal to--
                        ``(A) in the case of a producer or purchaser of
                    domestic tobacco, .5 percent of the national price
                    support level for each such crop; and
                        ``(B) in the case of an importer of tobacco, 1
                    percent of the national support price for the same kind
                    of tobacco;
            as provided for in this section.''; and
                        (B) in paragraph (2), by striking ``assessments and
                    purchaser'' and inserting ``, purchaser, and
                    importer''.
                (2) Conforming amendment.--Section 106 of such Act (7
            U.S.C. 1445) is amended by striking subsection (h).
        (c) Waiver Authority.--The President may waive the application to
    imported tobacco of section 106(g), 106A, or 106B of the Agricultural
    Act of 1949 (7 U.S.C. 1445(g), 1445-1, or 1445-2) or the amendment made
    in subsection (c) of section 1106 of the Omnibus Budget Reconciliation
    Act of 1993 (Public Law 103-66; 107 Stat. 323) if the President
    determines that the waiver is necessary or appropriate pursuant to an
    international agreement entered into by the United States.
        (d) Duty Drawback.--Section 313(w) of the Tariff Act of 1930 (19
    U.S.C. 1313) (as added by section 404(d)(5)) is further amended--
                (1) by striking ``Products.--No'' and inserting
            ``Products.--
                ``(1) In general.--No''; and
                (2) by adding at the end the following new paragraph:
                ``(2) Application to tobacco.--Notwithstanding paragraph
            (1), drawback shall also be available pursuant to subsection
            (a) with respect to any tobacco subject to the over-quota rate
            of duty established under a tariff-rate quota.''.
        (e) Effective Date.--This section and the amendments made by this
    section shall be effective beginning on the effective date of the
    Presidential proclamation, authorized under section 421, establishing a
    tariff-rate quota pursuant to Article XXVIII of the GATT 1947 or the
    GATT 1994 with respect to tobacco.

    SEC. 423. TOBACCO PROCLAMATION AUTHORITY.

        (a) In General.--The President, after consultation with the
    Committee on Ways and Means of the House of Representatives and with
    the Committee on Finance of the Senate, may proclaim the reduction or
    elimination of any duty with respect to cigar binder and filler
    tobacco, wrapper tobacco, or oriental tobacco set forth in Schedule XX.
        (b) Effective Date.--This section shall take effect on the date of
    the enactment of this Act.

    SEC. 424. REPORT TO CONGRESS ON ACCESS TO CANADIAN DAIRY AND POULTRY
                  MARKETS.

        The President, not later than 6 months after the date of entry into
    force of the WTO Agreement with respect to the United States, shall
    submit a report to the Congress on the extent to which Canada is
    complying with its obligations under the Uruguay Round Agreements with
    respect to dairy and poultry products and with its related obligations
    under the North American Free Trade Agreement.

    SEC. 425. STUDY OF MILK MARKETING ORDER SYSTEM.

        The Secretary of Agriculture shall conduct a study to determine the
    effects of the Uruguay Round Agreements on the Federal milk marketing
    order system. Not later than 6 months after the date of entry into
    force of the WTO Agreement with respect to the United States, the
    Secretary of Agriculture shall report to the Congress on the results of
    the study.

    SEC. 426. ADDITIONAL PROGRAM FUNDING.

        (a) Use of Additional Funds.--Consistent, as determined by the
    President, with the obligations undertaken by the United States set
    forth in the Uruguay Round Agreements, the Commodity Credit Corporation
    shall use, in addition to any other funds appropriated or made
    available for such purposes, any funds made available under subsection
    (b) for authorized export promotion, foreign market development, export
    credit financing, and promoting the development, commercialization, and
    marketing of products resulting from alternative uses of agricultural
    commodities.
        (b) Amount of Additional Funds.--Amounts shall be credited to the
    Commodity Credit Corporation in fiscal year 1995 equal to the lesser of
    the dollar amount of--
                (1) the fiscal year 1995 Pay-As-You-Go savings; and
                (2) the 5-year Pay-As-You-Go savings;
    under section 252 of the Balanced Budget and Emergency Deficit Control
    Act of 1985, resulting from the enactment of the Federal Crop Insurance
    Reform Act of 1994.
        (c) Effective Date.--This section shall take effect on the date of
    the enactment of this section.

                Subtitle B--Sanitary and Phytosanitary Measures

    SEC. 431. SANITARY AND PHYTOSANITARY MEASURES.

        (a) Trade Agreements Act of 1979.--Section 414 of the Trade
    Agreements Act of 1979 (19 U.S.C. 2544) is amended by adding at the end
    the following:
        ``(c) Sanitary and Phytosanitary Measures.--
                ``(1) Public information.--The standards information center
            shall, in addition to the functions specified under subsection
            (b), make available to the public relevant documents, at such
            reasonable fees as the Secretary of Commerce may prescribe, and
            information regarding--
                        ``(A) any sanitary or phytosanitary measure of
                    general application, including any inspection procedure
                    or approval procedure proposed, adopted, or maintained
                    by a Federal agency or agency of a State or local
                    government;
                        ``(B) the procedures of a Federal agency or an
                    agency of a State or local government for risk
                    assessment and factors the agency considers in
                    conducting the assessment;
                        ``(C) the determination of the levels of protection
                    that a Federal agency or an agency of a State or local
                    government considers appropriate; and
                        ``(D) the membership and participation of the
                    Federal Government and State and local 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.
                ``(2) Definitions.--The definitions in section 463 apply
            for purposes of this subsection.''.
        (b) Railway Car Inspection.--Subsection (a) of the Act of January
    31, 1942 (56 Stat. 40, chapter 31; 7 U.S.C. 149), is amended by
    striking ``from Mexico''.
        (c) Federal Plant Pest Act.--The Federal Plant Pest Act (7 U.S.C.
    150aa et seq.) is amended--
                (1) so that section 103 (7 U.S.C. 150bb) reads as follows:

    ``SEC. 103. MOVEMENT OF PESTS PROHIBITED.

        ``(a) In General.--No person shall import or enter any plant pest
    into the United States, or move any plant pest interstate, or accept
    delivery of any plant pest moving from any foreign country into or
    through the United States, or interstate, unless the movement is made
    in accordance with such regulations as the Secretary may promulgate to
    prevent the dissemination into the United States, or interstate, of
    plant pests.
        ``(b) Regulations.--The regulations promulgated by the Secretary to
    implement subsection (a) may include regulations requiring that a plant
    pest moving into or through the United States, or interstate--
                ``(1) be accompanied by a permit issued by the Secretary
            prior to the movement of the plant pest; or
                ``(2) be accompanied by a certificate of inspection issued,
            in a manner and form required by the Secretary, by appropriate
            officials of the country or State from which the plant pest is
            to be moved.''; and
                (2) in section 104 (7 U.S.C. 150cc)--
                        (A) so that subsection (a) reads as follows:
        ``(a) Any letter, parcel, box, or other package containing any
    plant pest, whether sealed as letter-rate postal matter or not, is
    nonmailable, and shall not knowingly be conveyed in the mail or
    delivered from any post office or by any mail carrier, unless it is
    mailed in conformance with such regulations as the Secretary may
    promulgate to prevent the dissemination into the United States, or
    interstate, of plant pests.'';
                        (B) by striking subsection (b); and
                        (C) by redesignating subsections (c) and (d) as
                    subsections (b) and (c), respectively.
        (d) Plant Quarantine Act.--The Act of August 20, 1912 (37 Stat.
    315, chapter 308; 7 U.S.C. 151 et seq.) (commonly known as the ``Plant
    Quarantine Act'') is amended--
                (1) so that the first section (7 U.S.C. 151) reads as
            follows:

    ``SECTION 1. IMPORTATION OF NURSERY STOCK.

        ``(a) In General.--No person shall--
                ``(1) import or enter into the United States any nursery
            stock; or
                ``(2) accept delivery of any nursery stock moving from any
            foreign country into or through the United States;
    unless the movement is made in accordance with such regulations as the
    Secretary of Agriculture may promulgate to prevent dissemination into
    the United States of plant pests, plant diseases, or insect pests.
        ``(b) Regulations.--The regulations promulgated by the Secretary of
    Agriculture to implement subsection (a) may include regulations
    requiring that nursery stock moving into or through the United States--
                ``(1) be accompanied by a permit issued by the Secretary of
            Agriculture prior to the movement of the nursery stock;
                ``(2) be accompanied by a certificate of inspection issued,
            in a manner and form required by the Secretary of Agriculture,
            by appropriate officials of the country or State from which the
            nursery stock is to be moved;
                ``(3) be grown under postentry quarantine conditions by or
            under the supervision of the Secretary of Agriculture for the
            purposes of determining whether the nursery stock may be
            infested with plant pests or insect pests, or infected with
            plant diseases, not discernible by port-of-entry inspection;
            and
                ``(4) if the nursery stock is found to be infested with
            plant pests or insect pests or infected with plant diseases, be
            subject to remedial measures the Secretary of Agriculture
            determines to be necessary to prevent the spread of plant
            pests, insect pests, or plant diseases.''; and
                (2) so that the last sentence of section 2 (7 U.S.C. 156)
            reads as follows: ``This section does not apply to nursery
            stock that is imported or entered from a country or a region of
            a country that the Secretary of Agriculture designates,
            pursuant to procedures set forth in such regulations as the
            Secretary may promulgate, as exempt from the requirements of
            this section.''.
        (e) Honeybee Importation.--The first section of the Act of August
    31, 1922 (42 Stat. 833, chapter 301; 7 U.S.C. 281) (commonly known as
    the ``Honeybee Act''), is amended to read as follows:

    ``SECTION 1. HONEYBEE IMPORTATION.

        ``(a) In General.--The Secretary of Agriculture is authorized to
    prohibit or restrict the importation or entry of honeybees and honeybee
    semen into or through the United States in order to prevent the
    introduction and spread of diseases and parasites harmful to honeybees,
    the introduction of genetically undesirable germ plasm of honeybees, or
    the introduction and spread of undesirable species or subspecies of
    honeybees and the semen of honeybees.
        ``(b) Regulations.--The Secretary of Agriculture and the Secretary
    of the Treasury are each authorized to prescribe such regulations as
    the respective Secretary determines necessary to carry out this
    section.
        ``(c) Enforcement.--Honeybees or honeybee semen offered for
    importation into, intercepted entering, or having entered the United
    States, other than in accordance with regulations promulgated by the
    Secretary of Agriculture and the Secretary of the Treasury, shall be
    destroyed or immediately exported.
        ``(d) Definition.--As used in this Act, the term `honeybee' means
    all life stages and the germ plasm of honeybees of the genus Apis,
    except honeybee semen.''.
        (f) Federal Noxious Weed Act of 1974.--Section 4 of the Federal
    Noxious Weed Act of 1974 (7 U.S.C. 2803) is amended so that subsections
    (a) through (b) read as follows:
        ``(a) No person shall import or enter any noxious weed identified
    in a regulation promulgated by the Secretary into or through the United
    States or move any noxious weed interstate, unless the movement is in
    accordance with such conditions as the Secretary may prescribe by
    regulation under this Act to prevent the dissemination into the United
    States, or interstate, of such noxious weeds.
        ``(b) The regulations prescribed by the Secretary to implement
    subsection (a) may include regulations requiring that any noxious weed
    imported or entered into the United States or moving interstate be
    accompanied by a permit issued by the Secretary prior to the movement
    of the noxious weed.''.
        (g) Tariff Act of 1930.--Section 306(b) of the Tariff Act of 1930
    (19 U.S.C. 1306(b)) is amended by inserting before the period at the
    end the following: ``, or is, and is likely to remain, a region of low
    prevalence of rinderpest and foot-and-mouth disease''.
        (h) Importation of Animals.--Section 6 of the Act of August 30,
    1890 (26 Stat. 416, chapter 839; 21 U.S.C. 104), is amended to read as
    follows:

    ``SEC. 6. IMPORTATION OF ANIMALS.

        ``(a) In General.--The Secretary of Agriculture may by regulation
    prohibit or restrict the importation or entry of any cattle, sheep, or
    other ruminants, or swine, that are diseased or infected with any
    disease, or that have been exposed to an infection, into or through the
    United States to prevent the dissemination into the United States of a
    disease.
        ``(b) Penalties.--
                ``(1) Criminal.--Any person who knowingly violates any
            regulation promulgated by the Secretary pursuant to this
            section, or any provision of sections 7 through 10 or any
            regulation promulgated by the Secretary pursuant to such
            sections, shall be fined under title 18, United States Code, or
            imprisoned not more than 1 year, or both.
                ``(2) Civil.--Any person who violates any such provision or
            any such regulation may be assessed a civil penalty by the
            Secretary of Agriculture not exceeding $1,000. The Secretary
            may issue an order assessing the civil penalty only after
            notice and an opportunity for an agency hearing on the record.
            The order shall be treated as a final order reviewable under
            chapter 158 of title 28, United States Code. The validity of
            the order may not be reviewed in an action to collect such
            civil penalty.''.
        (i) 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) in subsection (a)--
                        (A) by striking ``(a) In General.--Except as
                    provided in subsection (b), the'' and inserting
                    ``The'';
                        (B) in the first sentence, by striking ``shall
                    cause careful inspection to be made by a suitable
                    officer of all'' and inserting ``may cause careful
                    inspection of any''; and
                        (C) in the third sentence, by striking ``they shall
                    not be allowed to be placed'' and inserting ``the
                    Secretary may prohibit or restrict their placement'';
                    and
                (2) by striking subsection (b).
        (j) International Animal Quarantine Station.--The 6th sentence in
    the first section of Public Law 91-239 (21 U.S.C. 135) is amended--
                (1) by striking ``North American''; and
                (2) by striking ``within the United States''.
        (k) Poultry Products Inspection Act.--Section 17(d) of the Poultry
    Products Inspection Act (21 U.S.C. 466) is amended--
                (1) by amending paragraph (1) to read as follows:
        ``(1) 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 shall--
                ``(A) be subject to inspection, sanitary, quality, species
            verification, and residue standards that achieve a level of
            sanitary protection equivalent to that achieved under United
            States standards; and
                ``(B) have been processed in facilities and under
            conditions that achieve a level of sanitary protection
            equivalent to that achieved under United States standards.'';
            and
                (2) in paragraph (2)--
                        (A) by amending subparagraph (A) to read as
                    follows:
        ``(A) The Secretary may treat as equivalent to a United States
    standard a standard of an exporting country described in paragraph (1)
    if the exporting country provides the Secretary with scientific
    evidence or other information, in accordance with risk assessment
    methodologies determined appropriate by the Secretary, to demonstrate
    that the standard of the exporting country achieves the level of
    sanitary protection achieved under the United States standard. For the
    purposes of this subsection, the term `sanitary protection' means
    protection to safeguard public health.'';
                        (B) by striking subparagraph (B); and
                        (C) by redesignating subparagraph (C) as
                    subparagraph (B).
        (l) Federal Meat Inspection Act.--Section 20(e) of the Federal Meat
    Inspection Act (21 U.S.C. 620(e)) is amended--
                (1) so that subparagraphs (A) through (B) of paragraph (1)
            read as follows:
                ``(A) A certification by the Secretary that foreign plants
            exporting carcasses or meat or meat products referred to in
            subsection (a) have complied with requirements that achieve a
            level of sanitary protection equivalent to that achieved under
            United States requirements with regard to all inspection,
            building construction standards, and all other provisions of
            this Act and regulations issued under this Act.
                ``(B) 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 determined appropriate by the
            Secretary, to demonstrate that the requirement achieves the
            level of sanitary protection achieved under the United States
            requirement. For the purposes of this subsection, the term
            `sanitary protection' means protection to safeguard public
            health.'';
                (2) by striking paragraph (2); and
                (3) by redesignating paragraphs (3) through (7) as
            paragraphs (2) through (6), respectively.

    SEC. 432. INTERNATIONAL STANDARD-SETTING ACTIVITIES.

        Title IV of the Trade Agreements Act of 1979 (19 U.S.C. 2531 et
    seq.) is amended by adding at the end the following new subtitle:

            ``Subtitle F--International Standard-Setting Activities

    ``SEC. 491. NOTICE OF UNITED STATES PARTICIPATION IN INTERNATIONAL
                  STANDARD-SETTING ACTIVITIES.

        ``(a) In General.--The President shall designate an agency to be
    responsible for informing the public of the sanitary and phytosanitary
    standard-setting activities of each international standard-setting
    organization.
        ``(b) Notification.--Not later than June 1 of each year, the agency
    designated under subsection (a) with respect to each international
    standard-setting organization shall publish notice in the Federal
    Register of the information specified in subsection (c) with respect to
    that organization. The notice shall cover the period ending on June 1
    of the year in which the notice is published, and beginning on the date
    of the preceding notice under this subsection, except that the first
    such notice shall cover the 1-year period ending on the date of the
    notice.
        ``(c) Required Information.--The information to be provided in the
    notice under subsection (b) is--
                ``(1) the sanitary or phytosanitary standards under
            consideration or planned for consideration by that
            organization;
                ``(2) for each sanitary or phytosanitary standard specified
            in paragraph (1)--
                        ``(A) a description of the consideration or planned
                    consideration of the standard;
                        ``(B) whether the United States is participating or
                    plans to participate in the consideration of the
                    standard;
                        ``(C) the agenda for the United States
                    participation, if any; and
                        ``(D) the agency responsible for representing the
                    United States with respect to the standard.
        ``(d) Public Comment.--The agency specified in subsection (c)(2)(D)
    shall provide an opportunity for public comment with respect to the
    standards for which the agency is responsible and shall take the
    comments into account in participating in the consideration of the
    standards and in proposing matters to be considered by the
    organization.

    ``SEC. 492. EQUIVALENCE DETERMINATIONS.

        ``(a) In General.--An agency may not determine that a sanitary or
    phytosanitary measure of a foreign country is equivalent to a sanitary
    or phytosanitary measure established under the authority of Federal law
    unless the agency determines that the sanitary or phytosanitary measure
    of the foreign country provides at least the same level of sanitary or
    phytosanitary protection as the comparable sanitary or phytosanitary
    measure established under the authority of Federal law.
        ``(b) FDA Determination.--If the Commissioner proposes to issue a
    determination of the equivalency of a sanitary or phytosanitary measure
    of a foreign country to a measure that is required to be promulgated as
    a rule under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et
    seq.) or other statute administered by the Food and Drug
    Administration, the Commissioner shall issue a proposed regulation to
    incorporate such determination and shall include in the notice of
    proposed rulemaking the basis for the determination that the sanitary
    or phytosanitary measure of a foreign country provides at least the
    same level of sanitary or phytosanitary protection as the comparable
    Federal sanitary or phytosanitary measure. The Commissioner shall
    provide opportunity for interested persons to comment on the proposed
    regulation. The Commissioner shall not issue a final regulation based
    on the proposal without taking into account the comments received.
        ``(c) Notice.--If the Commissioner proposes to issue a
    determination of the equivalency of a sanitary or phytosanitary measure
    of a foreign country to a sanitary or phystosanitary measure of the
    Food and Drug Administration that is not required to be promulgated as
    a rule under the Federal Food, Drug, and Cosmetic Act or other statute
    administered by the Food and Drug Administration, the Commissioner
    shall publish a notice in the Federal Register that identifies the
    basis for the determination that the measure provides at least the same
    level of sanitary or phytosanitary protection as the comparable Federal
    sanitary or phytosanitary measure. The Commissioner shall provide
    opportunity for interested persons to comment on the notice. The
    Commissioner shall not issue a final determination on the issue of
    equivalency without taking into account the comments received.

    ``SEC. 493. DEFINITIONS.

        ``(a) In General.--As used in this subtitle:
                ``(1) Agency.--The term `agency' means a Federal department
            or agency (or combination of Federal departments or agencies).
                ``(2) Commissioner.--The term `Commissioner' means the
            Commissioner of Food and Drugs.
                ``(3) International standard-setting organization.--The
            term `international standard-setting organization' means an
            organization consisting of representatives of 2 or more
            countries, the purpose of which is to negotiate, develop,
            promulgate, or amend an international standard.
                ``(4) Sanitary or phytosanitary standard.--The term
            `sanitary or phytosanitary standard' means a standard intended
            to form a basis for a sanitary or phytosanitary measure.
                ``(5) International standard.--The term `international
            standard' means a standard, guideline, or recommendation--
                        ``(A) regarding food safety, adopted by the Codex
                    Alimentarius Commission, including a standard,
                    guideline, or recommendation regarding decomposition
                    elaborated by the Codex Committee on Fish and Fishery
                    Products, food additives, contaminants, hygienic
                    practice, and methods of analysis and sampling;
                        ``(B) regarding animal health and zoonoses,
                    developed under the auspices of the International
                    Office of Epizootics;
                        ``(C) regarding plant health, developed under the
                    auspices of the Secretariat of the International Plant
                    Protection Convention in cooperation with the North
                    American Plant Protection Organization; or
                        ``(D) established by or developed under any other
                    international organization agreed to by the NAFTA
                    countries (as defined in section 2(4) of the North
                    American Free Trade Agreement Implementation Act) or by
                    the WTO members (as defined in section 2(10) of the
                    Uruguay Round Agreements Act).
        ``(b) Other Definitions.--The definitions set forth in section 463
    apply for purposes of this subtitle except that in applying paragraph
    (7) of section 463 with respect to a sanitary or phytosanitary measure
    of a foreign country, any reference in such paragraph to the United
    States shall be deemed to be a reference to that foreign country.''.

                             Subtitle C--Standards

    SEC. 441. THE FEDERAL SEED ACT.

        The Federal Seed Act (7 U.S.C. 1551 et seq.) is amended--
                (1) in section 301(a) (7 U.S.C. 1581(a))--
                        (A) by striking ``(a)'';
                        (B) in paragraph (1), by striking ``, or is
                    required to be stained and is not so stained, under the
                    terms of this title,'';
                        (C) by striking paragraph (3); and
                        (D) by redesignating paragraphs (4) and (5) as
                    paragraphs (3) and (4), respectively;
                (2) in section 302 (7 U.S.C. 1582)--
                        (A) in subsection (a), by striking ``staining,''
                    both places it appears; and
                        (B) by striking subsection (e);
                (3) by striking section 303 (7 U.S.C. 1585) and inserting
            the following new section:

    ``SEC. 303. CERTAIN SEEDS NOT ADAPTED FOR GENERAL AGRICULTURAL USE.

        ``Whenever the Secretary of Agriculture, after a public hearing,
    determines that seed of alfalfa or red clover from any foreign country
    is not adapted for general agricultural use in the United States, the
    Secretary shall publish the determination and the reasons for the
    determination.''; and
                (4) in section 304 (7 U.S.C. 1586)--
                        (A) in subsection (a)--
                                (i) by inserting ``or'' at the end of
                            paragraph (2);
                                (ii) by striking the semicolon at the end
                            of paragraph (3) and inserting a period; and
                                (iii) by striking paragraphs (4) through
                            (7);
                        (B) by striking subsection (b); and
                        (C) by redesignating subsection (c) as subsection
                    (b).

                       Subtitle D--General Effective Date

    SEC. 451. GENERAL EFFECTIVE DATE.

        Except as otherwise provided in this title, this title, and the
    amendments made by this title, shall take effect on the date of entry
    into force of the WTO Agreement with respect to the United States.

                         TITLE V--INTELLECTUAL PROPERTY

    SEC. 501. DEFINITION.

        For purposes of this title--
                (1) the term ``WTO Agreement'' has the meaning given that
            term in section 2(9) of the Uruguay Round Agreements Act; and
                (2) the term ``WTO member country'' has the meaning given
            that term in section 2(10) of the Uruguay Round Agreements Act.

                        Subtitle A--Copyright Provisions

    SEC. 511. RENTAL RIGHTS IN COMPUTER PROGRAMS.

        Section 804(c) of the Computer Software Rental Amendments Act of
    1990 (17 U.S.C. 109 note; 104 Stat. 5136) is amended by striking the
    first sentence.

    SEC. 512. CIVIL PENALTIES FOR UNAUTHORIZED FIXATION OF AND TRAFFICKING
                  IN SOUND RECORDINGS AND MUSIC VIDEOS OF LIVE MUSICAL
                  PERFORMANCES.

        (a) In General.--Title 17, United States Code, is amended by adding
    at the end the following new chapter:

                ``CHAPTER 11--SOUND RECORDINGS AND MUSIC VIDEOS

    ``Sec.
    ``1101. Unauthorized fixation and trafficking in sound recordings and
                                music videos.
    ``Sec. 1101. Unauthorized fixation and trafficking in sound recordings
                  and music videos
        ``(a) Unauthorized Acts.--Anyone who, without the consent of the
    performer or performers involved--
                ``(1) fixes the sounds or sounds and images of a live
            musical performance in a copy or phonorecord, or reproduces
            copies or phonorecords of such a performance from an
            unauthorized fixation,
                ``(2) transmits or otherwise communicates to the public the
            sounds or sounds and images of a live musical performance, or
                ``(3) distributes or offers to distribute, sells or offers
            to sell, rents or offers to rent, or traffics in any copy or
            phonorecord fixed as described in paragraph (1), regardless of
            whether the fixations occurred in the United States,
    shall be subject to the remedies provided in sections 502 through 505,
    to the same extent as an infringer of copyright.
        ``(b) Definition.--As used in this section, the term `traffic in'
    means transport, transfer, or otherwise dispose of, to another, as
    consideration for anything of value, or make or obtain control of with
    intent to transport, transfer, or dispose of.
        ``(c) Applicability.--This section shall apply to any act or acts
    that occur on or after the date of the enactment of the Uruguay Round
    Agreements Act.
        ``(d) State Law Not Preempted.--Nothing in this section may be
    construed to annul or limit any rights or remedies under the common law
    or statutes of any State.''.
        (b) Conforming Amendment.--The table of chapters for title 17,
    United States Code, is amended by adding at the end the following:

    ``11. Sound Recordings and Music Videos.....................    1101''.

    SEC. 513. CRIMINAL PENALTIES FOR UNAUTHORIZED FIXATION OF AND
                  TRAFFICKING IN SOUND RECORDINGS AND MUSIC VIDEOS OR LIVE
                  MUSICAL PERFORMANCES.

        (a) In General.--Chapter 113 of title 18, United States Code, is
    amended by inserting after section 2319 the following:
    ``Sec. 2319A. Unauthorized fixation of and trafficking in sound
                  recordings and music videos of live musical performances
        ``(a) Offense.--Whoever, without the consent of the performer or
    performers involved, knowingly and for purposes of commercial advantage
    or private financial gain--
                ``(1) fixes the sounds or sounds and images of a live
            musical performance in a copy or phonorecord, or reproduces
            copies or phonorecords of such a performance from an
            unauthorized fixation;
                ``(2) transmits or otherwise communicates to the public the
            sounds or sounds and images of a live musical performance; or
                ``(3) distributes or offers to distribute, sells or offers
            to sell, rents or offers to rent, or traffics in any copy or
            phonorecord fixed as described in paragraph (1), regardless of
            whether the fixations occurred in the United States;
    shall be imprisoned for not more than 5 years or fined in the amount
    set forth in this title, or both, or if the offense is a second or
    subsequent offense, shall be imprisoned for not more than 10 years or
    fined in the amount set forth in this title, or both.
        ``(b) Forfeiture and Destruction.--When a person is convicted of a
    violation of subsection (a), the court shall order the forfeiture and
    destruction of any copies or phonorecords created in violation thereof,
    as well as any plates, molds, matrices, masters, tapes, and film
    negatives by means of which such copies or phonorecords may be made.
    The court may also, in its discretion, order the forfeiture and
    destruction of any other equipment by means of which such copies or
    phonorecords may be reproduced, taking into account the nature, scope,
    and proportionality of the use of the equipment in the offense.
        ``(c) Seizure and Forfeiture.--If copies or phonorecords of sounds
    or sounds and images of a live musical performance are fixed outside of
    the United States without the consent of the performer or performers
    involved, such copies or phonorecords are subject to seizure and
    forfeiture in the United States in the same manner as property imported
    in violation of the customs laws. The Secretary of the Treasury shall,
    not later than 60 days after the date of the enactment of the Uruguay
    Round Agreements Act, issue regulations to carry out this subsection,
    including regulations by which any performer may, upon payment of a
    specified fee, be entitled to notification by the United States Customs
    Service of the importation of copies or phonorecords that appear to
    consist of unauthorized fixations of the sounds or sounds and images of
    a live musical performance.
        ``(d) Definitions.--As used in this section--
                ``(1) the terms `copy', `fixed', `musical work',
            `phonorecord', `reproduce', `sound recordings', and `transmit'
            mean those terms within the meaning of title 17; and
                ``(2) the term `traffic in' means transport, transfer, or
            otherwise dispose of, to another, as consideration for anything
            of value, or make or obtain control of with intent to
            transport, transfer, or dispose of.
        ``(e) Applicability.--This section shall apply to any Act or Acts
    that occur on or after the date of the enactment of the Uruguay Round
    Agreements Act.''.
        (b) Conforming Amendment.--The table of sections for chapter 113 of
    title 18, United States Code, is amended by inserting after the item
    relating to section 2319 the following:

    ``2319A. Unauthorized fixation of and trafficking in sound recordings
                                and music videos of live musical
                                performances.''.

    SEC. 514. RESTORED WORKS.

        (a) In General.--Section 104A of title 17, United States Code, is
    amended to read as follows:
    ``Sec. 104A. Copyright in restored works
        ``(a) Automatic Protection and Term.--
                ``(1) Term.--
                        ``(A) Copyright subsists, in accordance with this
                    section, in restored works, and vests automatically on
                    the date of restoration.
                        ``(B) Any work in which copyright is restored under
                    this section shall subsist for the remainder of the
                    term of copyright that the work would have otherwise
                    been granted in the United States if the work never
                    entered the public domain in the United States.
                ``(2) Exception.--Any work in which the copyright was ever
            owned or administered by the Alien Property Custodian and in
            which the restored copyright would be owned by a government or
            instrumentality thereof, is not a restored work.
        ``(b) Ownership of Restored Copyright.--A restored work vests
    initially in the author or initial rightholder of the work as
    determined by the law of the source country of the work.
        ``(c) Filing of Notice of Intent to Enforce Restored Copyright
    Against Reliance Parties.--On or after the date of restoration, any
    person who owns a copyright in a restored work or an exclusive right
    therein may file with the Copyright Office a notice of intent to
    enforce that person's copyright or exclusive right or may serve such a
    notice directly on a reliance party. Acceptance of a notice by the
    Copyright Office is effective as to any reliance parties but shall not
    create a presumption of the validity of any of the facts stated
    therein. Service on a reliance party is effective as to that reliance
    party and any other reliance parties with actual knowledge of such
    service and of the contents of that notice.
        ``(d) Remedies for Infringement of Restored Copyrights.--
                ``(1) Enforcement of copyright in restored works in the
            absence of a reliance party.--As against any party who is not a
            reliance party, the remedies provided in chapter 5 of this
            title shall be available on or after the date of restoration of
            a restored copyright with respect to an act of infringement of
            the restored copyright that is commenced on or after the date
            of restoration.
                ``(2) Enforcement of copyright in restored works as against
            reliance parties.--As against a reliance party, except to the
            extent provided in paragraphs (3) and (4), the remedies
            provided in chapter 5 of this title shall be available, with
            respect to an act of infringement of a restored copyright, on
            or after the date of restoration of the restored copyright if
            the requirements of either of the following subparagraphs are
            met:
                        ``(A)(i) The owner of the restored copyright (or
                    such owner's agent) or the owner of an exclusive right
                    therein (or such owner's agent) files with the
                    Copyright Office, during the 24-month period beginning
                    on the date of restoration, a notice of intent to
                    enforce the restored copyright; and
                        ``(ii)(I) the act of infringement commenced after
                    the end of the 12-month period beginning on the date of
                    publication of the notice in the Federal Register;
                        ``(II) the act of infringement commenced before the
                    end of the 12-month period described in subclause (I)
                    and continued after the end of that 12-month period, in
                    which case remedies shall be available only for
                    infringement occurring after the end of that 12-month
                    period; or
                        ``(III) copies or phonorecords of a work in which
                    copyright has been restored under this section are made
                    after publication of the notice of intent in the
                    Federal Register.
                        ``(B)(i) The owner of the restored copyright (or
                    such owner's agent) or the owner of an exclusive right
                    therein (or such owner's agent) serves upon a reliance
                    party a notice of intent to enforce a restored
                    copyright; and
                        ``(ii)(I) the act of infringement commenced after
                    the end of the 12-month period beginning on the date
                    the notice of intent is received;
                        ``(II) the act of infringement commenced before the
                    end of the 12-month period described in subclause (I)
                    and continued after the end of that 12-month period, in
                    which case remedies shall be available only for the
                    infringement occurring after the end of that 12-month
                    period; or
                        ``(III) copies or phonorecords of a work in which
                    copyright has been restored under this section are made
                    after receipt of the notice of intent.
            In the event that notice is provided under both subparagraphs
            (A) and (B), the 12-month period referred to in such
            subparagraphs shall run from the earlier of publication or
            service of notice.
                ``(3) Existing derivative works.--(A) In the case of a
            derivative work that is based upon a restored work and is
            created--
                        ``(i) before the date of the enactment of the
                    Uruguay Round Agreements Act, if the source country of
                    the derivative work is an eligible country on such
                    date, or
                        ``(ii) before the date of adherence or
                    proclamation, if the source country of the derivative
                    work is not an eligible country on such date of
                    enactment,
            a reliance party may continue to exploit that work for the
            duration of the restored copyright if the reliance party pays
            to the owner of the restored copyright reasonable compensation
            for conduct which would be subject to a remedy for infringement
            but for the provisions of this paragraph.
                ``(B) In the absence of an agreement between the parties,
            the amount of such compensation shall be determined by an
            action in United States district court, and shall reflect any
            harm to the actual or potential market for or value of the
            restored work from the reliance party's continued exploitation
            of the work, as well as compensation for the relative
            contributions of expression of the author of the restored work
            and the reliance party to the derivative work.
                ``(4) Commencement of infringement for reliance parties.--
            For purposes of section 412, in the case of reliance parties,
            infringement shall be deemed to have commenced before
            registration when acts which would have constituted
            infringement had the restored work been subject to copyright
            were commenced before the date of restoration.
        ``(e) Notices of Intent To Enforce a Restored Copyright.--
                ``(1) Notices of intent filed with the copyright office.--
            (A)(i) A notice of intent filed with the Copyright Office to
            enforce a restored copyright shall be signed by the owner of
            the restored copyright or the owner of an exclusive right
            therein, who files the notice under subsection (d)(2)(A)(i)
            (hereafter in this paragraph referred to as the `owner'), or by
            the owner's agent, shall identify the title of the restored
            work, and shall include an English translation of the title and
            any other alternative titles known to the owner by which the
            restored work may be identified, and an address and telephone
            number at which the owner may be contacted. If the notice is
            signed by an agent, the agency relationship must have been
            constituted in a writing signed by the owner before the filing
            of the notice. The Copyright Office may specifically require in
            regulations other information to be included in the notice, but
            failure to provide such other information shall not invalidate
            the notice or be a basis for refusal to list the restored work
            in the Federal Register.
                ``(ii) If a work in which copyright is restored has no
            formal title, it shall be described in the notice of intent in
            detail sufficient to identify it.
                ``(iii) Minor errors or omissions may be corrected by
            further notice at any time after the notice of intent is filed.
            Notices of corrections for such minor errors or omissions shall
            be accepted after the period established in subsection
            (d)(2)(A)(i). Notices shall be published in the Federal
            Register pursuant to subparagraph (B).
                ``(B)(i) The Register of Copyrights shall publish in the
            Federal Register, commencing not later than 4 months after the
            date of restoration for a particular nation and every 4 months
            thereafter for a period of 2 years, lists identifying restored
            works and the ownership thereof if a notice of intent to
            enforce a restored copyright has been filed.
                ``(ii) Not less than 1 list containing all notices of
            intent to enforce shall be maintained in the Public Information
            Office of the Copyright Office and shall be available for
            public inspection and copying during regular business hours
            pursuant to sections 705 and 708. Such list shall also be
            published in the Federal Register on an annual basis for the
            first 2 years after the applicable date of restoration.
                ``(C) The Register of Copyrights is authorized to fix
            reasonable fees based on the costs of receipt, processing,
            recording, and publication of notices of intent to enforce a
            restored copyright and corrections thereto.
                ``(D)(i) Not later than 90 days before the date the
            Agreement on Trade-Related Aspects of Intellectual Property
            referred to in section 101(d)(15) of the Uruguay Round
            Agreements Act enters into force with respect to the United
            States, the Copyright Office shall issue and publish in the
            Federal Register regulations governing the filing under this
            subsection of notices of intent to enforce a restored
            copyright.
                ``(ii) Such regulations shall permit owners of restored
            copyrights to file simultaneously for registration of the
            restored copyright.
                ``(2) Notices of intent served on a reliance party.--(A)
            Notices of intent to enforce a restored copyright may be served
            on a reliance party at any time after the date of restoration
            of the restored copyright.
                ``(B) Notices of intent to enforce a restored copyright
            served on a reliance party shall be signed by the owner or the
            owner's agent, shall identify the restored work and the work in
            which the restored work is used, if any, in detail sufficient
            to identify them, and shall include an English translation of
            the title, any other alternative titles known to the owner by
            which the work may be identified, the use or uses to which the
            owner objects, and an address and telephone number at which the
            reliance party may contact the owner. If the notice is signed
            by an agent, the agency relationship must have been constituted
            in writing and signed by the owner before service of the
            notice.
                ``(3) Effect of material false statements.--Any material
            false statement knowingly made with respect to any restored
            copyright identified in any notice of intent shall make void
            all claims and assertions made with respect to such restored
            copyright.
        ``(f) Immunity From Warranty and Related Liability.--
                ``(1) In general.--Any person who warrants, promises, or
            guarantees that a work does not violate an exclusive right
            granted in section 106 shall not be liable for legal,
            equitable, arbitral, or administrative relief if the warranty,
            promise, or guarantee is breached by virtue of the restoration
            of copyright under this section, if such warranty, promise, or
            guarantee is made before January 1, 1995.
                ``(2) Performances.--No person shall be required to perform
            any act if such performance is made infringing by virtue of the
            restoration of copyright under the provisions of this section,
            if the obligation to perform was undertaken before January 1,
            1995.
        ``(g) Proclamation of Copyright Restoration.--Whenever the
    President finds that a particular foreign nation extends, to works by
    authors who are nationals or domiciliaries of the United States,
    restored copyright protection on substantially the same basis as
    provided under this section, the President may by proclamation extend
    restored protection provided under this section to any work--
                ``(1) of which one or more of the authors is, on the date
            of first publication, a national, domiciliary, or sovereign
            authority of that nation; or
                ``(2) which was first published in that nation.
    The President may revise, suspend, or revoke any such proclamation or
    impose any conditions or limitations on protection under such a
    proclamation.
        ``(h) Definitions.--For purposes of this section and section
    109(a):
                ``(1) The term `date of adherence or proclamation' means
            the earlier of the date on which a foreign nation which, as of
            the date the WTO Agreement enters into force with respect to
            the United States, is not a nation adhering to the Berne
            Convention or a WTO member country, becomes--
                        ``(A) a nation adhering to the Berne Convention or
                    a WTO member country; or
                        ``(B) subject to a Presidential proclamation under
                    subsection (g).
                ``(2) The `date of restoration' of a restored copyright is
            the later of--
                        ``(A) the date on which the Agreement on Trade-
                    Related Aspects of Intellectual Property referred to in
                    section 101(d)(15) of the Uruguay Round Agreements Act
                    enters into force with respect to the United States, if
                    the source country of the restored work is a nation
                    adhering to the Berne Convention or a WTO member
                    country on such date; or
                        ``(B) the date of adherence or proclamation, in the
                    case of any other source country of the restored work.
                ``(3) The term `eligible country' means a nation, other
            than the United States, that is a WTO member country, adheres
            to the Berne Convention, or is subject to a proclamation under
            section 104A(g).
                ``(4) The term `reliance party' means any person who--
                        ``(A) with respect to a particular work, engages in
                    acts, before the source country of that work becomes an
                    eligible country, which would have violated section 106
                    if the restored work had been subject to copyright
                    protection, and who, after the source country becomes
                    an eligible country, continues to engage in such acts;
                        ``(B) before the source country of a particular
                    work becomes an eligible country, makes or acquires 1
                    or more copies or phonorecords of that work; or
                        ``(C) as the result of the sale or other
                    disposition of a derivative work covered under
                    subsection (d)(3), or significant assets of a person
                    described in subparagraph (A) or (B), is a successor,
                    assignee, or licensee of that person.
                ``(5) The term `restored copyright' means copyright in a
            restored work under this section.
                ``(6) The term `restored work' means an original work of
            authorship that--
                        ``(A) is protected under subsection (a);
                        ``(B) is not in the public domain in its source
                    country through expiration of term of protection;
                        ``(C) is in the public domain in the United States
                    due to--
                                ``(i) noncompliance with formalities
                            imposed at any time by United States copyright
                            law, including failure of renewal, lack of
                            proper notice, or failure to comply with any
                            manufacturing requirements;
                                ``(ii) lack of subject matter protection in
                            the case of sound recordings fixed before
                            February 15, 1972; or
                                ``(iii) lack of national eligibility; and
                        ``(D) has at least one author or rightholder who
                    was, at the time the work was created, a national or
                    domiciliary of an eligible country, and if published,
                    was first published in an eligible country and not
                    published in the United States during the 30-day period
                    following publication in such eligible country.
                ``(7) The term `rightholder' means the person--
                        ``(A) who, with respect to a sound recording, first
                    fixes a sound recording with authorization, or
                        ``(B) who has acquired rights from the person
                    described in subparagraph (A) by means of any
                    conveyance or by operation of law.
                ``(8) The `source country' of a restored work is--
                        ``(A) a nation other than the United States;
                        ``(B) in the case of an unpublished work--
                                ``(i) the eligible country in which the
                            author or rightholder is a national or
                            domiciliary, or, if a restored work has more
                            than 1 author or rightholder, the majority of
                            foreign authors or rightholders are nationals
                            or domiciliaries of eligible countries; or
                                ``(ii) if the majority of authors or
                            rightholders are not foreign, the nation other
                            than the United States which has the most
                            significant contacts with the work; and
                        ``(C) in the case of a published work--
                                ``(i) the eligible country in which the
                            work is first published, or
                                ``(ii) if the restored work is published on
                            the same day in 2 or more eligible countries,
                            the eligible country which has the most
                            significant contacts with the work.
                ``(9) The terms `WTO Agreement' and `WTO member country'
            have the meanings given those terms in paragraphs (9) and (10),
            respectively, of section 2 of the Uruguay Round Agreements
            Act.''.
        (b) Limitation.--Section 109(a) of title 17, United States Code, is
    amended by adding at the end the following: ``Notwithstanding the
    preceding sentence, copies or phonorecords of works subject to restored
    copyright under section 104A that are manufactured before the date of
    restoration of copyright or, with respect to reliance parties, before
    publication or service of notice under section 104A(e), may be sold or
    otherwise disposed of without the authorization of the owner of the
    restored copyright for purposes of direct or indirect commercial
    advantage only during the 12-month period beginning on--
                ``(1) the date of the publication in the Federal Register
            of the notice of intent filed with the Copyright Office under
            section 104A(d)(2)(A), or
                ``(2) the date of the receipt of actual notice served under
            section 104A(d)(2)(B),
    whichever occurs first.''.
        (c) Conforming Amendment.--The item relating to section 104A in the
    table of sections for chapter 1 of title 17, United States Code, is
    amended to read as follows:

    ``104A. Copyright in restored works.''.

                        Subtitle B--Trademark Provisions

    SEC. 521. DEFINITION OF ``ABANDONED''.

        Section 45 of the Act entitled ``An Act to provide for the
    registration and protection of trade-marks used in commerce, to carry
    out the provisions of certain international conventions, and for other
    purposes'', approved July 5, 1946 (15 U.S.C. 1127) (hereafter in this
    title referred to as the ``Trademark Act of 1946''), is amended by
    amending the paragraph defining ``abandoned'' to read as follows:
        ``A mark shall be deemed to be `abandoned' if either of the
    following occurs:
                ``(1) When its use has been discontinued with intent not to
            resume such use. Intent not to resume may be inferred from
            circumstances. Nonuse for 3 consecutive years shall be prima
            facie evidence of abandonment. `Use' of a mark means the bona
            fide use of such mark made in the ordinary course of trade, and
            not made merely to reserve a right in a mark.
                ``(2) When any course of conduct of the owner, including
            acts of omission as well as commission, causes the mark to
            become the generic name for the goods or services on or in
            connection with which it is used or otherwise to lose its
            significance as a mark. Purchaser motivation shall not be a
            test for determining abandonment under this paragraph.''.

    SEC. 522. NONREGISTRABILITY OF MISLEADING GEOGRAPHIC INDICATIONS FOR
                  WINES AND SPIRITS.

        Subsection (a) of section 2 of the Trademark Act of 1946 (15 U.S.C.
    1052(a)) is amended to read as follows:
        ``(a) Consists of or comprises immoral, deceptive, or scandalous
    matter; or matter which may disparage or falsely suggest a connection
    with persons, living or dead, institutions, beliefs, or national
    symbols, or bring them into contempt, or disrepute; or a geographical
    indication which, when used on or in connection with wines or spirits,
    identifies a place other than the origin of the goods and is first used
    on or in connection with wines or spirits by the applicant on or after
    one year after the date on which the WTO Agreement (as defined in
    section 2(9) of the Uruguay Round Agreements Act) enters into force
    with respect to the United States.''.

    SEC. 523. EFFECTIVE DATE.

        The amendments made by this subtitle take effect one year after the
    date on which the WTO Agreement enters into force with respect to the
    United States.

                         Subtitle C--Patent Provisions

    SEC.  531. TREATMENT OF INVENTIVE ACTIVITY.

        (a) In General.--Section 104 of title 35, United States Code, is
    amended to read as follows:
    ``Sec. 104. Invention made abroad
        ``(a) In General.--
                ``(1) Proceedings.--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 or a WTO member country,
            except as provided in sections 119 and 365 of this title.
                ``(2) Rights.--If an invention was made by a person, civil
            or military--
                        ``(A) while domiciled in the United States, and
                    serving in any other country in connection with
                    operations by or on behalf of the United States,
                        ``(B) while domiciled in a NAFTA country and
                    serving in another country in connection with
                    operations by or on behalf of that NAFTA country, or
                        ``(C) while domiciled in a WTO member country and
                    serving in another country in connection with
                    operations by or on behalf of that WTO member country,
            that 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, that NAFTA
            country, or that WTO member country, as the case may be.
                ``(3) Use of information.--To the extent that any
            information in a NAFTA country or a WTO member 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 Patent and Trademark
            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) Definitions.--As used in this section--
                ``(1) the term `NAFTA country' has the meaning given that
            term in section 2(4) of the North American Free Trade Agreement
            Implementation Act; and
                ``(2) the term `WTO member country' has the meaning given
            that term in section 2(10) of the Uruguay Round Agreements
            Act.''.
        (b) Effective Date.--
                (1) In general.--Except as provided in paragraph (2), the
            amendment made by this section shall apply to all patent
            applications that are filed on or after the date that is 12
            months after the date of entry into force of the WTO Agreement
            with respect to the United States.
                (2) Establishment of date.--An applicant for a patent, or a
            patentee, may not establish a date of invention for purposes of
            title 35, United States Code, that is earlier than 12 months
            after the date of entry into force of the WTO Agreement with
            respect to the United States by reference to knowledge or use,
            or other activity, in a WTO member country, except as provided
            in sections 119 and 365 of such title.

    SEC. 532. PATENT TERM AND INTERNAL PRIORITY.

        (a) Patent Rights.--
                (1) Contents and term of patent.--Section 154 of title 35,
            United States Code, is amended to read as follows:
    ``Sec. 154. Contents and term of patent
        ``(a) In General.--
                ``(1) Contents.--Every patent shall contain a short title
            of the invention and a grant to the patentee, his heirs or
            assigns, of the right to exclude others from making, using,
            offering for sale, or selling the invention throughout the
            United States or importing the invention into the United
            States, and, if the invention is a process, of the right to
            exclude others from using, offering for sale or selling
            throughout the United States, or importing into the United
            States, products made by that process, referring to the
            specification for the particulars thereof.
                ``(2) Term.--Subject to the payment of fees under this
            title, such grant shall be for a term beginning on the date on
            which the patent issues and ending 20 years from the date on
            which the application for the patent was filed in the United
            States or, if the application contains a specific reference to
            an earlier filed application or applications under section 120,
            121, or 365(c) of this title, from the date on which the
            earliest such application was filed.
                ``(3) Priority.--Priority under section 119, 365(a), or
            365(b) of this title shall not be taken into account in
            determining the term of a patent.
                ``(4) Specification and drawing.--A copy of the
            specification and drawing shall be annexed to the patent and be
            a part of such patent.
        ``(b) Term Extension.--
                ``(1) Interference delay or secrecy orders.--If the issue
            of an original patent is delayed due to a proceeding under
            section 135(a) of this title, or because the application for
            patent is placed under an order pursuant to section 181 of this
            title, the term of the patent shall be extended for the period
            of delay, but in no case more than 5 years.
                ``(2) Extension for appellate review.--If the issue of a
            patent is delayed due to appellate review by the Board of
            Patent Appeals and Interferences or by a Federal court and the
            patent is issued pursuant to a decision in the review reversing
            an adverse determination of patentability, the term of the
            patent shall be extended for a period of time but in no case
            more than 5 years. A patent shall not be eligible for extension
            under this paragraph if it is subject to a terminal disclaimer
            due to the issue of another patent claiming subject matter that
            is not patentably distinct from that under appellate review.
                ``(3) Limitations.--The period of extension referred to in
            paragraph (2)--
                        ``(A) shall include any period beginning on the
                    date on which an appeal is filed under section 134 or
                    141 of this title, or on which an action is commenced
                    under section 145 of this title, and ending on the date
                    of a final decision in favor of the applicant;
                        ``(B) shall be reduced by any time attributable to
                    appellate review before the expiration of 3 years from
                    the filing date of the application for patent; and
                        ``(C) shall be reduced for the period of time
                    during which the applicant for patent did not act with
                    due diligence, as determined by the Commissioner.
                ``(4) Length of extension.--The total duration of all
            extensions of a patent under this subsection shall not exceed 5
            years.
        ``(c) Continuation.--
                ``(1) Determination.--The term of a patent that is in force
            on or that results from an application filed before the date
            that is 6 months after the date of the enactment of the Uruguay
            Round Agreements Act shall be the greater of the 20-year term
            as provided in subsection (a), or 17 years from grant, subject
            to any terminal disclaimers.
                ``(2) Remedies.--The remedies of sections 283, 284, and 285
            of this title shall not apply to Acts which--
                        ``(A) were commenced or for which substantial
                    investment was made before the date that is 6 months
                    after the date of the enactment of the Uruguay Round
                    Agreements Act; and
                        ``(B) became infringing by reason of paragraph (1).
                ``(3) Remuneration.--The acts referred to in paragraph (2)
            may be continued only upon the payment of an equitable
            remuneration to the patentee that is determined in an action
            brought under chapter 28 and chapter 29 (other than those
            provisions excluded by paragraph (2)) of this title.''.
                (2) Provision of further limited reexamination and
            conditions of restriction requirements.--(A) The Commissioner
            of Patents and Trademarks shall prescribe regulations to
            provide for further limited reexamination of applications that
            have been pending for 2 years or longer as of the effective
            date of section 154(a)(2) of title 35, United States Code, as
            added by paragraph (1) of this subsection, taking into account
            any reference made in such application to any earlier filed
            application under section 120, 121, or 365(c) of such title.
            The Commissioner may establish appropriate fees for such
            further limited reexamination.
                (B) The Commissioner of Patents and Trademarks shall
            prescribe regulations to provide for the examination of more
            than 1 independent and distinct invention in an application
            that has been pending for 3 years or longer as of the effective
            date of section 154(a)(2) of title 35, United States Code, as
            added by paragraph (1) of this subsection, taking into account
            any reference made in such application to any earlier filed
            application under section 120, 121, or 365(c) of such title.
            The Commissioner may establish appropriate fees for such
            examination.
        (b) Establishment of a Domestic Priority System.--
                (1) In general.--Section 119 of title 35, United States
            Code, is amended--
                        (A) by amending the section caption to read as
                    follows:
    ``Sec. 119. Benefit of earlier filing date; right of priority'';
                        (B) by designating the undesignated paragraphs as
                    subsections (a), (b), (c), and (d), respectively; and
                        (C) by adding at the end the following:
        ``(e)(1) An application for patent filed under section 111(a) or
    section 363 of this title for an invention disclosed in the manner
    provided by the first paragraph of section 112 of this title in a
    provisional application filed under section 111(b) of this title, by an
    inventor or inventors named in the provisional application, shall have
    the same effect, as to such invention, as though filed on the date of
    the provisional application filed under section 111(b) of this title,
    if the application for patent filed under section 111(a) or section 363
    of this title is filed not later than 12 months after the date on which
    the provisional application was filed and if it contains or is amended
    to contain a specific reference to the provisional application.
        ``(2) A provisional application filed under section 111(b) of this
    title may not be relied upon in any proceeding in the Patent and
    Trademark Office unless the fee set forth in subparagraph (A) or (C) of
    section 41(a)(1) of this title has been paid and the provisional
    application was pending on the filing date of the application for
    patent under section 111(a) or section 363 of this title.''.
                (2) Fees.--Section 41(a)(1) of title 35, United States
            Code, is amended by adding at the end the following:
                ``(C) On filing each provisional application for an
            original patent, $150.''.
                (3) Applications.--Section 111 of title 35, United States
            Code, is amended to read as follows:
    ``Sec. 111. Application
        ``(a) In General.--
                ``(1) Written application.--An application for patent shall
            be made, or authorized to be made, by the inventor, except as
            otherwise provided in this title, in writing to the
            Commissioner.
                ``(2) Contents.--Such application shall include--
                        ``(A) a specification as prescribed by section 112
                    of this title;
                        ``(B) a drawing as prescribed by section 113 of
                    this title; and
                        ``(C) an oath by the applicant as prescribed by
                    section 115 of this title.
                ``(3) Fee and oath.--The application must be accompanied by
            the fee required by law. The fee and oath may be submitted
            after the specification and any required drawing are submitted,
            within such period and under such conditions, including the
            payment of a surcharge, as may be prescribed by the
            Commissioner.
                ``(4) Failure to submit.--Upon failure to submit the fee
            and oath within such prescribed period, the application shall
            be regarded as abandoned, unless it is shown to the
            satisfaction of the Commissioner that the delay in submitting
            the fee and oath was unavoidable or unintentional. The filing
            date of an application shall be the date on which the
            specification and any required drawing are received in the
            Patent and Trademark Office.
        ``(b) Provisional Application.--
                ``(1) Authorization.--A provisional application for patent
            shall be made or authorized to be made by the inventor, except
            as otherwise provided in this title, in writing to the
            Commissioner. Such application shall include--
                        ``(A) a specification as prescribed by the first
                    paragraph of section 112 of this title; and
                        ``(B) a drawing as prescribed by section 113 of
                    this title.
                ``(2) Claim.--A claim, as required by the second through
            fifth paragraphs of section 112, shall not be required in a
            provisional application.
                ``(3) Fee.--(A) The application must be accompanied by the
            fee required by law.
                ``(B) The fee may be submitted after the specification and
            any required drawing are submitted, within such period and
            under such conditions, including the payment of a surcharge, as
            may be prescribed by the Commissioner.
                ``(C) Upon failure to submit the fee within such prescribed
            period, the application shall be regarded as abandoned, unless
            it is shown to the satisfaction of the Commissioner that the
            delay in submitting the fee was unavoidable or unintentional.
                ``(4) Filing date.--The filing date of a provisional
            application shall be the date on which the specification and
            any required drawing are received in the Patent and Trademark
            Office.
                ``(5) Abandonment.--The provisional application shall be
            regarded as abandoned 12 months after the filing date of such
            application and shall not be subject to revival thereafter.
                ``(6) Other basis for provisional application.--Subject to
            all the conditions in this subsection and section 119(e) of
            this title, and as prescribed by the Commissioner, an
            application for patent filed under subsection (a) may be
            treated as a provisional application for patent.
                ``(7) No right of priority or benefit of earliest filing
            date.--A provisional application shall not be entitled to the
            right of priority of any other application under section 119 or
            365(a) of this title or to the benefit of an earlier filing
            date in the United States under section 120, 121, or 365(c) of
            this title.
                ``(8) Applicable provisions.--The provisions of this title
            relating to applications for patent shall apply to provisional
            applications for patent, except as otherwise provided, and
            except that provisional applications for patent shall not be
            subject to sections 115, 131, 135, and 157 of this title.''.
        (c) Conforming Changes.--
                (1) Section 156(a)(2) of title 35, United States Code, is
            amended by inserting ``under subsection (e)(1) of this
            section'' after ``extended''.
                (2) Section 172 of title 35, United States Code, is
            amended--
                        (A) by striking ``section 119'' and inserting
                    ``subsections (a) through (d) of section 119''; and
                        (B) by inserting at the end the following new
                    sentence:
    ``The right of priority provided for by section 119(e) of this title
    shall not apply to designs.''.
                (3) Section 173 of title 35, United States Code, is amended
            by inserting ``from the date of grant'' after ``years''.
                (4) Section 365 of title 35, United States Code, is
            amended--
                        (A) in subsection (a), by striking ``section 119''
                    and inserting ``subsections (a) through (d) of section
                    119''; and
                        (B) in subsection (b), by striking ``the first
                    paragraph of section 119'' and inserting ``section
                    119(a)''.
                (5) Section 373 of title 35, United States Code, is amended
            by striking ``section 119'' and inserting ``subsections (a)
            through (d) of section 119''.
                (6) The table of sections for chapter 11 of title 35,
            United States Code, is amended--
                        (A) by striking the item relating to section 111
                    and inserting the following:

    ``111. Application.'';
                    and
                        (B) by striking the item relating to section 119
                    and inserting the following:

    ``119. Benefit of earlier filing date; right of priority.''.

    SEC.  533. PATENT RIGHTS.

        (a) Definition of Infringement.--Section 271 of title 35, United
    States Code, is amended--
                (1) in subsection (a)--
                        (A) by inserting ``, offers to sell,'' after
                    ``uses''; and
                        (B) by inserting ``or imports into the United
                    States any patented invention'' after ``the United
                    States'';
                (2) in subsection (c), by striking ``sells'' and inserting
            ``offers to sell or sells within the United States or imports
            into the United States'';
                (3) in subsection (e)--
                        (A) in paragraph (1), by striking ``or sell'' and
                    inserting ``offer to sell, or sell within the United
                    States or import into the United States'';
                        (B) in paragraph (3), by striking ``or selling''
                    and inserting ``offering to sell, or selling within the
                    United States or importing into the United States'';
                        (C) in paragraph (4)(B), by striking ``or sale''
                    and inserting ``offer to sell, or sale within the
                    United States or importation into the United States'';
                    and
                        (D) in paragraph (4)(C), by striking ``or sale''
                    and inserting ``offer to sell, or sale within the
                    United States or importation into the United States'';
                (4) in subsection (g)--
                        (A) by striking ``sells'' and inserting ``offers to
                    sell, sells,'';
                        (B) by striking ``importation, sale,'' and
                    inserting ``importation, offer to sell, sale,''; and
                        (C) by striking ``other use or'' and inserting
                    ``other use, offer to sell, or''; and
                (5) by adding at the end the following:
        ``(i) As used in this section, an `offer for sale' or an `offer to
    sell' by a person other than the patentee, or any designee of the
    patentee, is that in which the sale will occur before the expiration of
    the term of the patent.''.
        (b) Conforming Amendments.--
                (1) Paragraph (2) of section 41(c) of title 35, United
            States Code, is amended to read as follows:
        ``(2) A patent, the term of which has been maintained as a result
    of the acceptance of a payment of a maintenance fee under this
    subsection, shall not abridge or affect the right of any person or that
    person's successors in business who made, purchased, offered to sell,
    or used anything protected by the patent within the United States, or
    imported anything protected by the patent into the United States after
    the 6-month grace period but prior to the acceptance of a maintenance
    fee under this subsection, to continue the use of, to offer for sale,
    or to sell to others to be used, offered for sale, or sold, the
    specific thing so made, purchased, offered for sale, used, or imported.
    The court before which such matter is in question may provide for the
    continued manufacture, use, offer for sale, or sale of the thing made,
    purchased, offered for sale, or used within the United States, or
    imported into the United States, as specified, or for the manufacture,
    use, offer for sale, or sale in the United States of which substantial
    preparation was made after the 6-month grace period but before the
    acceptance of a maintenance fee under this subsection, and the court
    may also provide for the continued practice of any process that is
    practiced, or for the practice of which substantial preparation was
    made, after the 6-month grace period but before the acceptance of a
    maintenance fee under this subsection, to the extent and under such
    terms as the court deems equitable for the protection of investments
    made or business commenced after the 6-month grace period but before
    the acceptance of a maintenance fee under this subsection.''.
                (2) The second undesignated paragraph of section 252 of
            title 35, United States Code, is amended to read as follows:
        ``A reissued patent shall not abridge or affect the right of any
    person or that person's successors in business who, prior to the grant
    of a reissue, made, purchased, offered to sell, or used within the
    United States, or imported into the United States, anything patented by
    the reissued patent, to continue the use of, to offer to sell, or to
    sell to others to be used, offered for sale, or sold, the specific
    thing so made, purchased, offered for sale, used, or imported unless
    the making, using, offering for sale, or selling of such thing
    infringes a valid claim of the reissued patent which was in the
    original patent. The court before which such matter is in question may
    provide for the continued manufacture, use, offer for sale, or sale of
    the thing made, purchased, offered for sale, used, or imported as
    specified, or for the manufacture, use, offer for sale, or sale in the
    United States of which substantial preparation was made before the
    grant of the reissue, and the court may also provide for the continued
    practice of any process patented by the reissue that is practiced, or
    for the practice of which substantial preparation was made, before the
    grant of the reissue, to the extent and under such terms as the court
    deems equitable for the protection of investments made or business
    commenced before the grant of the reissue.''.
                (3) Section 262 of title 35, United States Code, is
            amended--
                        (A) by striking ``use or sell'' and inserting
                    ``use, offer to sell, or sell''; and
                        (B) by inserting ``within the United States, or
                    import the patented invention into the United States,''
                    after ``invention''.
                (4) Section 272 of title 35, United States Code, is amended
            by striking ``not sold'' and inserting ``not offered for sale
            or sold''.
                (5) Section 287 of title 35, United States Code, is
            amended--
                        (A) in subsection (a)--
                                (i) by striking ``making or selling'' and
                            inserting ``making, offering for sale, or
                            selling within the United States''; and
                                (ii) by inserting ``or importing any
                            patented article into the United States,''
                            after ``under them,''; and
                        (B) in subsection (b)--
                                (i) in paragraph (1)(C), by striking ``use,
                            or sale'' and inserting ``use, offer for sale,
                            or sale'';
                                (ii) in paragraph (4)(A), by striking
                            ``sold or'' and inserting ``sold, offered for
                            sale, or'' in the matter preceding clause (i);
                                (iii) in paragraph (4)(A)(ii), by striking
                            ``use, or sale'' and inserting ``use, offer for
                            sale, or sale'';
                                (iv) in paragraph (4)(C), by striking
                            ``have been sold'' and inserting ``have been
                            offered for sale or sold''; and
                                (v) in paragraph (4)(C), by striking
                            ``United States before'' and inserting ``United
                            States, or imported by the person into the
                            United States, before''.
                (6) Section 292(a) of title 35, United States Code, is
            amended--
                        (A) by striking ``used, or sold by him'' and
                    inserting ``used, offered for sale, or sold by such
                    person within the United States, or imported by the
                    person into the United States''; and
                        (B) by striking ``made or sold'' and inserting
                    ``made, offered for sale, sold, or imported into the
                    United States''.
                (7) Section 295 of title 35, United States Code, is amended
            by striking ``sale, or use'' and inserting ``sale, offer for
            sale, or use''.
                (8) Section 307(b) of title 35, United States Code, is
            amended by striking ``used anything'' and inserting ``used
            within the United States, or imported into the United States,
            anything''.

    SEC. 534. EFFECTIVE DATES AND APPLICATION.

        (a) In General.--Subject to subsection (b), the amendments made by
    this subtitle take effect on the date that is one year after the date
    on which the WTO Agreement enters into force with respect to the United
    States.
        (b) Patent Applications.--
                (1) In general.--Subject to paragraph (2), the amendments
            made by section 532 take effect on the date that is 6 months
            after the date of the enactment of this Act and shall apply to
            all patent applications filed in the United States on or after
            the effective date.
                (2) Section 154(a)(1).--Section 154(a)(1) of title 35,
            United States Code, as amended by section 532(a)(1) of this
            Act, shall take effect on the effective date described in
            subsection (a).
                (3) Earliest filing.--The term of a patent granted on an
            application that is filed on or after the effective date
            described in subsection (a) and that contains a specific
            reference to an earlier application filed under the provisions
            of section 120, 121, or 365(c) of title 35, United States Code,
            shall be measured from the filing date of the earliest filed
            application.

                          TITLE VI--RELATED PROVISIONS

                        Subtitle A--Expiring Provisions

    SEC. 601. GENERALIZED SYSTEM OF PREFERENCES.

        (a) Extension of Duty-Free Treatment Under System.--Section 505(a)
    of the Trade Act of 1974 (19 U.S.C. 2465(a)) is amended by striking
    ``September 30, 1994'' and inserting ``July 31, 1995''.
        (b) Retroactive Application For Certain Liquidations and
    Reliquidations.--
                (1) In general.--Notwithstanding section 514 of the Tariff
            Act of 1930 or any other provision of law and subject to
            paragraph (2), the entry--
                        (A) of any article to which duty-free treatment
                    under title V of the Trade Act of 1974 would have
                    applied if the entry had been made on September 30,
                    1994, and
                        (B) that was made after September 30, 1994, and
                    before such date of enactment,
            shall be liquidated or reliquidated as free of duty, and the
            Secretary of the Treasury shall refund any duty paid with
            respect to such entry. As used in this subsection, the term
            ``entry'' includes a withdrawal from warehouse for consumption.
                (2) Requests.--Liquidation or reliquidation may be made
            under paragraph (1) with respect to an entry only if a request
            therefor is filed with the Customs Service, within 180 days
            after the date of the enactment of this Act, that contains
            sufficient information to enable the Customs Service--
                        (A) to locate the entry; or
                        (B) to reconstruct the entry if it cannot be
                    located.

    SEC. 602. U.S. INSULAR POSSESSIONS.

        (a) Extension of Verification and Certificate Issuance
    Provisions.--Additional U.S. Note 5(h)(i) to chapter 91 of the HTS is
    amended by striking ``and before January 1, 1995,'' and inserting ``and
    before January 1, 2007,''.
        (b) Extension of Certificate Number PIC-EV-89.--Notwithstanding any
    other provision of law, the production incentive certificate, number
    PIC-EV-89, issued jointly by the Secretary of Commerce and the
    Secretary of the Interior, pursuant to paragraph (h)(i)(B) of
    Additional U.S. Note 5 to chapter 91 of the HTS (formerly paragraph
    (h)(i)(II) of headnote 6 of schedule 7, part 2, subpart E of the Tariff
    Schedules of the United States), shall be deemed to have been reissued
    on the date of the enactment of this Act in the amount of the balance
    remaining on such certificate, and shall expire on the date that is 1
    year after such date of enactment.

                     Subtitle B--Certain Customs Provisions

    SEC. 611. REIMBURSEMENTS FROM CUSTOMS USER FEE ACCOUNT.

        (a) In General.--Subclause (II) of section 13031(f)(3)(A)(i) of the
    Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
    58c(f)(3)(A)(i)(II)) is amended to read as follows:
                        ``(II) paying premium pay under section 5(b) of the
                    Act of February 13, 1911, but the amount for which
                    reimbursement may be made under this subclause may not,
                    for any fiscal year, exceed the difference between the
                    total cost of all the premium pay for such year
                    calculated under section 5(b) and the cost of the night
                    and holiday premium pay that the Customs Service would
                    have incurred for the same inspectional work on the day
                    before the effective date of section 13813 of the
                    Omnibus Budget Reconciliation Act of 1993,''.
        (b) Effective Date.--The amendment made by this section shall apply
    to customs inspectional services performed on or after January 1, 1994.

    SEC. 612. MERCHANDISE PROCESSING FEES.

        (a) In General.--Section 13031 of the Consolidated Omnibus Budget
    Reconciliation Act of 1985 (19 U.S.C. 58c) is amended--
                (1) in subsection (a)(9)--
                        (A) in subparagraph (A), by striking ``0.17'' and
                    inserting ``0.21'',
                        (B) in subparagraph (B)(i), by striking ``(but not
                    to a rate of more than 0.19 percent nor less than 0.15
                    percent) that would'' and inserting ``(but not to a
                    rate of more than 0.21 percent nor less than 0.15
                    percent) and the amounts specified in subsection
                    (b)(8)(A)(i) (but not to more than $485 nor less than
                    $21) to rates and amounts which would'', and
                        (C) in subparagraph (B)(ii), by striking ``section
                    613A of the Tariff Act of 1930'' and inserting
                    ``subsection (f)'',
                (2) in subsection (a)(10)--
                        (A) in subparagraph (C), by striking ``entry or
                    release.'' and inserting ``entry or release,'',
                        (B) in clause (ii), by striking ``$5'' and
                    inserting ``$6'', and
                        (C) in clause (iii), by striking ``$8'' and
                    inserting ``$9'', and
                (3) in subsection (b)(8)(A)(i), by striking ``$400 or be
            less than $21'', and inserting ``$485 or be less than $25,
            unless adjusted pursuant to subsection (a)(9)(B)''.
        (b) Effective Date.--The amendments made by this section apply to
    articles entered, or withdrawn from warehouse for consumption, on or
    after January 1, 1995.

                       Subtitle C--Conforming Amendments

    SEC. 621. CONFORMING AMENDMENTS.

        (a) Trade Laws.--
                (1) Section 1317(a)(1) of the Omnibus Trade and
            Competitiveness Act of 1988 (19 U.S.C. 1677k(a)(1)) is
            amended--
                        (A) by inserting ``(A)'' after ``(1)'';
                        (B) by striking ``General Agreement on Tariffs and
                    Trade'' and inserting ``GATT 1994''; and
                        (C) by adding at the end the following:
                ``(B) The term `GATT 1994' has the meaning given that term
            in section 2(1)(B) of the Uruguay Round Agreements Act.''.
                (2) Section 212(c)(4) of the Caribbean Basin Economic
            Recovery Act (19 U.S.C. 2702(c)(4)) is amended by striking
            ``General'' and all that follows through ``1979'' and inserting
            ``WTO Agreement and the multilateral trade agreements (as such
            terms are defined in paragraphs (9) and (4), respectively, of
            section 2 of the Uruguay Round Agreements Act)''.
                (3) Section 203(d)(4) of the Andean Trade Preference Act
            (19 U.S.C. 3202(d)(4)) is amended by striking ``General'' and
            all that follows through ``1979'' and inserting ``WTO Agreement
            and the multilateral trade agreements (as such terms are
            defined in paragraphs (9) and (4), respectively, of section 2
            of the Uruguay Round Agreements Act)''.
                (4) Section 1106 of the Omnibus Trade and Competitiveness
            Act of 1988 (19 U.S.C. 2905) is amended--
                        (A) in subsection (a), by striking ``the GATT'' and
                    inserting ``the GATT 1947, or to the WTO Agreement,'';
                        (B) in subsections (b) and (c), by inserting after
                    ``the GATT'' each place it appears ``1947 or the WTO
                    Agreement'';
                        (C) by adding at the end the following new
                    subsection:
        ``(e) Definitions.--For purposes of this section:
                ``(1) The term `GATT 1947' has the meaning given that term
            in section 2(1)(A) of the Uruguay Round Agreements Act.
                ``(2) The term `WTO Agreement' means the Agreement
            Establishing the World Trade Organization entered into on April
            15, 1994 and the multilateral trade agreements (as such term is
            defined in section 2(4) of the Uruguay Round Agreements
            Act).''; and
                        (D) by inserting after ``General Agreement on
                    Tariffs and Trade'' in the heading ``for the WTO''.
                (5) Section 1107(a)(3) of the Omnibus Trade and
            Competitiveness Act of 1988 (19 U.S.C. 2906(3)) is amended by
            striking ``the General Agreement on Tariffs and Trade'' and
            inserting ``the GATT 1947 (as defined in section 2(1)(A) of the
            Uruguay Round Agreements Act)''.
                (6) Section 1378(2) of the Omnibus Trade and
            Competitiveness Act of 1988 (19 U.S.C. 3107(2)) is amended by
            striking ``the General Agreement on Tariffs and Trade'' and
            inserting ``the WTO Agreement and the multilateral trade
            agreements (as such terms are defined in paragraphs (9) and
            (4), respectively, of section 2 of the Uruguay Round Agreements
            Act)''.
                (7) Section 1382 of the Omnibus Trade and Competitiveness
            Act of 1988 (19 U.S.C. 3111) is amended by striking ``the
            General Agreement on Tariffs and Trade'' and inserting ``the
            WTO Agreement and the multilateral trade agreements (as such
            terms are defined in paragraphs (9) and (4), respectively, of
            section 2 of the Uruguay Round Agreements Act)''.
                (8) Section 141(c)(1) of the Trade Act of 1974 (19 U.S.C.
            2171(c)(1)) is amended--
                        (A) in subparagraph (C) by inserting ``all
                    negotiations on any matter considered under the
                    auspices of the World Trade Organization,'' after
                    ``including''; and
                        (B) in subparagraph (D) by inserting ``, including
                    any matter considered under the auspices of the World
                    Trade Organization,'' after ``functions''.
                (9) Section 301(a)(2)(A) of the Trade Act of 1974 (19
            U.S.C. 2411(a)(2)(A)) is amended by striking ``the Contracting
            Parties'' and all that follows through ``Parties,'' and
            inserting ``the Dispute Settlement Body (as defined in section
            121(5) of the Uruguay Round Agreements Act) has adopted a
            report,''.
        (b) Effective Date.--The amendments made by this section shall take
    effect on the date on which the WTO Agreement enters into force with
    respect to the United States.

                         TITLE VII--REVENUE PROVISIONS

    SEC. 700. AMENDMENT OF 1986 CODE AND TABLE OF CONTENTS.

        (a) Amendment of 1986 Code.--Except as otherwise expressly
    provided, whenever in this title an amendment or repeal is expressed in
    terms of an amendment to, or repeal of, a section or other provision,
    the reference shall be considered to be made to a section or other
    provision of the Internal Revenue Code of 1986.
        (b) Table of Contents.--

                         TITLE VII--REVENUE PROVISIONS

    Sec. 700. Amendment of 1986 Code and table of contents.
                     Subtitle A--Withholding Tax Provisions

    Sec. 701. Withholding on distributions of Indian casino profits to
                                tribal members.
    Sec. 702. Voluntary withholding on certain Federal payments and on
                                unemployment compensation.
      Subtitle B--Provisions Relating to Estimated Taxes and Payments and
                               Deposits of Taxes

    Sec. 711. Treatment of subpart F and section 936 income of taxpayers
                                using annualized method for estimated tax.
    Sec. 712. Time for payments and deposits of certain taxes.
    Sec. 713. Reduction in rate of interest paid on certain corporate
                                overpayments.
                      Subtitle C--Earned Income Tax Credit

    Sec. 721. Extension of earned income tax credit to military personnel
                                stationed outside the United States.
    Sec. 722. Certain nonresident aliens ineligible for earned income tax
                                credit.
    Sec. 723. Income of prisoners disregarded in determining earned income
                                tax credit.
             Subtitle D--Provisions Relating To Retirement Benefits

    Sec. 731. Treatment of excess pension assets used for retiree health
                                benefits.
    Sec. 732. Rounding rules for cost-of-living adjustments.
    Sec. 733. Increase in inclusion of social security benefits paid to
                                nonresidents.
                          Subtitle E--Other Provisions

    Sec. 741. Partnership distributions of marketable securities.
    Sec. 742. Taxpayer identification numbers required at birth.
    Sec. 743. Extension of Internal Revenue Service user fees.
    Sec. 744. Modification of substantial understatement penalty for
                                corporations participating in tax shelters.
    Sec. 745. Modification of authority to set terms and conditions for
                                savings bonds.
                 Subtitle F--Pension Plan Funding and Premiums

    Sec. 750. Short title.
           subpart a--amendments to the internal revenue code of 1986
    Sec. 751. Minimum funding requirements.
    Sec. 752. Limitation on changes in current liability assumptions.
    Sec. 753. Anticipation of bargained benefit increases.
    Sec. 754. Modification of quarterly contribution requirement.
    subpart b--amendments to the employee retirement income security act of
                                      1974
    Sec. 761. Minimum funding requirements.
    Sec. 762. Limitation on changes in current liability assumptions.
    Sec. 763. Anticipation of bargained benefit increases.
    Sec. 764. Modificasubpart c--other funding provisionsirement.
    Sec. 766. Prohibition on benefit increases where plan sponsor is in
                                bankruptcy.
    Sec. 767. Single sum distributions.
    Sec. 768. Adjustments to lien for missed minimum funding contributions.
    Sec. 769. Special funding rules for certain plans.
      Part II--Amendments Related to Title IV of the Employee Retirement
                          Income Security Act of 1974

    Sec. 771. Reportable events.
    Sec. 772. Certain information required to be furnished to PBGC.
    Sec. 773. Enforcement of minimum funding requirements.
    Sec. 774. Computation of additional PBGC premium.
    Sec. 775. Disclosure to participants.
    Sec. 776. Missing participants.
    Sec. 777. Modification of maximum guarantee for disability benefits.
    Sec. 778. Procedures to facilitate distribution of termination
                                benefits.
                           Part III--Effective Dates

    Sec. 781. Effective dates.

                     Subtitle A--Withholding Tax Provisions

    SEC. 701. WITHHOLDING ON DISTRIBUTIONS OF INDIAN CASINO PROFITS TO
                  TRIBAL MEMBERS.

        (a) In General.--Section 3402 (relating to income tax collected at
    source) is amended by inserting after subsection (q) the following new
    subsection:
        ``(r) Extension of Withholding to Certain Taxable Payments of
    Indian Casino Profits.--
                ``(1) In general.--Every person, including an Indian tribe,
            making a payment to a member of an Indian tribe from the net
            revenues of any class II or class III gaming activity conducted
            or licensed by such tribe shall deduct and withhold from such
            payment a tax in an amount equal to such payment's
            proportionate share of the annualized tax.
                ``(2) Exception.--The tax imposed by paragraph (1) shall
            not apply to any payment to the extent that the payment, when
            annualized, does not exceed an amount equal to the sum of--
                        ``(A) the basic standard deduction (as defined in
                    section 63(c)) for an individual to whom section
                    63(c)(2)(C) applies, and
                        ``(B) the exemption amount (as defined in section
                    151(d)).
                ``(3) Annualized tax.--For purposes of paragraph (1), the
            term `annualized tax' means, with respect to any payment, the
            amount of tax which would be imposed by section 1(c)
            (determined without regard to any rate of tax in excess of 31
            percent) on an amount of taxable income equal to the excess
            of--
                        ``(A) the annualized amount of such payment, over
                        ``(B) the amount determined under paragraph (2).
                ``(4) Classes of gaming activities, etc.--For purposes of
            this subsection, terms used in paragraph (1) which are defined
            in section 4 of the Indian Gaming Regulatory Act (25 U.S.C.
            2701 et seq.), as in effect on the date of the enactment of
            this subsection, shall have the respective meanings given such
            terms by such section.
                ``(5) Annualization.--Payments shall be placed on an
            annualized basis under regulations prescribed by the Secretary.
                ``(6) Alternate withholding procedures.--At the election of
            an Indian tribe, the tax imposed by this subsection on any
            payment made by such tribe shall be determined in accordance
            with such tables or computational procedures as may be
            specified in regulations prescribed by the Secretary (in lieu
            of in accordance with paragraphs (2) and (3)).
                ``(7) Coordination with other sections.--For purposes of
            this chapter and so much of subtitle F as relates to this
            chapter, payments to any person which are subject to
            withholding under this subsection shall be treated as if they
            were wages paid by an employer to an employee.''
        (b) Effective Date.--The amendment made by this section shall apply
    to payments made after December 31, 1994.

    SEC. 702. VOLUNTARY WITHHOLDING ON CERTAIN FEDERAL PAYMENTS AND ON
                  UNEMPLOYMENT COMPENSATION.

        (a) In General.--Subsection (p) of section 3402 (relating to
    voluntary withholding agreements) is amended to read as follows:
        ``(p) Voluntary Withholding Agreements.--
                ``(1) Certain federal payments.--
                        ``(A) In general.--If, at the time a specified
                    Federal payment is made to any person, a request by
                    such person is in effect that such payment be subject
                    to withholding under this chapter, then for purposes of
                    this chapter and so much of subtitle F as relates to
                    this chapter, such payment shall be treated as if it
                    were a payment of wages by an employer to an employee.
                        ``(B) Amount withheld.--The amount to be deducted
                    and withheld under this chapter from any payment to
                    which any request under subparagraph (A) applies shall
                    be an amount equal to the percentage of such payment
                    specified in such request. Such a request shall apply
                    to any payment only if the percentage specified is 7,
                    15, 28, or 31 percent or such other percentage as is
                    permitted under regulations prescribed by the
                    Secretary.
                        ``(C) Specified federal payments.--For purposes of
                    this paragraph, the term `specified Federal payment'
                    means--
                                ``(i) any payment of a social security
                            benefit (as defined in section 86(d)),
                                ``(ii) any payment referred to in the
                            second sentence of section 451(d) which is
                            treated as insurance proceeds,
                                ``(iii) any amount which is includible in
                            gross income under section 77(a), and
                                ``(iv) any other payment made pursuant to
                            Federal law which is specified by the Secretary
                            for purposes of this paragraph.
                        ``(D) Requests for withholding.--Rules similar to
                    the rules that apply to annuities under subsection
                    (o)(4) shall apply to requests under this paragraph and
                    paragraph (2).
                ``(2) Voluntary withholding on unemployment benefits.--If,
            at the time a payment of unemployment compensation (as defined
            in section 85(b)) is made to any person, a request by such
            person is in effect that such payment be subject to withholding
            under this chapter, then for purposes of this chapter and so
            much of subtitle F as relates to this chapter, such payment
            shall be treated as if it were a payment of wages by an
            employer to an employee. The amount to be deducted and withheld
            under this chapter from any payment to which any request under
            this paragraph applies shall be an amount equal to 15 percent
            of such payment.
                ``(3) Authority for other voluntary withholding.--The
            Secretary is authorized by regulations to provide for
            withholding--
                        ``(A) from remuneration for services performed by
                    an employee for the employee's employer which (without
                    regard to this paragraph) does not constitute wages,
                    and
                        ``(B) from any other type of payment with respect
                    to which the Secretary finds that withholding would be
                    appropriate under the provisions of this chapter,
            if the employer and employee, or the person making and the
            person receiving such other type of payment, agree to such
            withholding. Such agreement shall be in such form and manner as
            the Secretary may by regulations prescribe. For purposes of
            this chapter (and so much of subtitle F as relates to this
            chapter), remuneration or other payments with respect to which
            such agreement is made shall be treated as if they were wages
            paid by an employer to an employee to the extent that such
            remuneration is paid or other payments are made during the
            period for which the agreement is in effect.''
        (b) State Law Must Permit Voluntary Withholding of Federal Income
    Tax From Unemployment Compensation.--Section 3304(a) is amended by
    striking ``and'' at the end of paragraph (17), by redesignating
    paragraph (18) as paragraph (19), and by inserting after paragraph (17)
    the following new paragraph:
                ``(18) Federal individual income tax from unemployment
            compensation is to be deducted and withheld if an individual
            receiving such compensation voluntarily requests such deduction
            and withholding; and''.
        (c) Withholding From Unemployment Compensation of Federal, State,
    and Local Income Taxes Permitted.--
                (1) Subparagraph (C) of section 3304(a)(4) is amended by
            inserting after ``health insurance'' the following: ``, or the
            withholding of Federal, State, or local individual income
            tax,''.
                (2) Subsection (f) of section 3306 is amended by
            redesignating paragraphs (3) and (4) as paragraphs (4) and (5),
            respectively, and by inserting after paragraph (2) the
            following new paragraph:
                ``(3) nothing in this subsection shall be construed to
            prohibit deducting any amount from unemployment compensation
            otherwise payable to an individual and using the amount so
            deducted to pay for health insurance, or the withholding of
            Federal, State, or local individual income tax, if the
            individual elected to have such deduction made and such
            deduction was made under a program approved by the Secretary of
            Labor;''.
                (3) Paragraph (5) of section 303(a) of the Social Security
            Act is amended by inserting after ``health insurance'' the
            following: ``, or the withholding of Federal, State, or local
            individual income tax,''.
        (d) Effective Date.--The amendments made by this section shall
    apply to payments made after December 31, 1996.

      Subtitle B--Provisions Relating to Estimated Taxes and Payments and
                               Deposits of Taxes

    SEC. 711. TREATMENT OF SUBPART F AND SECTION 936 INCOME OF TAXPAYERS
                  USING ANNUALIZED METHOD FOR ESTIMATED TAX.

        (a) Corporations.--Section 6655(e) (relating to lower required
    installment where annualized income installment is less) is amended by
    adding at the end the following new paragraph:
                ``(4) Treatment of subpart f and section 936 income.--
                        ``(A) In general.--Any amounts required to be
                    included in gross income under section 936(h) or 951(a)
                    (and credits properly allocable thereto) shall be taken
                    into account in computing any annualized income
                    installment under paragraph (2) in a manner similar to
                    the manner under which partnership income inclusions
                    (and credits properly allocable thereto) are taken into
                    account.
                        ``(B) Prior year safe harbor.--
                                ``(i) In general.--If a taxpayer elects to
                            have this subparagraph apply for any taxable
                            year--
                                        ``(I) subparagraph (A) shall not
                                    apply, and
                                        ``(II) for purposes of computing
                                    any annualized income installment for
                                    such taxable year, the taxpayer shall
                                    be treated as having received ratably
                                    during such taxable year items of
                                    income and credit described in
                                    subparagraph (A) in an amount equal to
                                    115 percent of the amount of such items
                                    shown on the return of the taxpayer for
                                    the preceding taxable year (the second
                                    preceding taxable year in the case of
                                    the first and second required
                                    installments for such taxable year).
                                ``(ii) Special rule for noncontrolling
                            shareholder.--
                                        ``(I) In general.--If a taxpayer
                                    making the election under clause (i) is
                                    a noncontrolling shareholder of a
                                    corporation, clause (i)(II) shall be
                                    applied with respect to items of such
                                    corporation by substituting `100
                                    percent' for `115 percent'.
                                        ``(II) Noncontrolling
                                    shareholder.--For purposes of subclause
                                    (I), the term `noncontrolling
                                    shareholder' means, with respect to any
                                    corporation, a shareholder which (as of
                                    the beginning of the taxable year for
                                    which the installment is being made)
                                    does not own (within the meaning of
                                    section 958(a)), and is not treated as
                                    owning (within the meaning of section
                                    958(b)), more than 50 percent (by vote
                                    or value) of the stock in the
                                    corporation.''
        (b) Individuals.--Section 6654(d)(2) (relating to lower required
    installment where annualized income installment is less) is amended by
    adding at the end the following new subparagraph:
                        ``(D) Treatment of subpart f and section 936
                    income.--
                                ``(i) In general.--Any amounts required to
                            be included in gross income under section
                            936(h) or 951(a) (and credits properly
                            allocable thereto) shall be taken into account
                            in computing any annualized income installment
                            under subparagraph (B) in a manner similar to
                            the manner under which partnership income
                            inclusions (and credits properly allocable
                            thereto) are taken into account.
                                ``(ii) Prior year safe harbor.--If a
                            taxpayer elects to have this clause apply to
                            any taxable year--
                                        ``(I) clause (i) shall not apply,
                                    and
                                        ``(II) for purposes of computing
                                    any annualized income installment for
                                    such taxable year, the taxpayer shall
                                    be treated as having received ratably
                                    during such taxable year items of
                                    income and credit described in clause
                                    (i) in an amount equal to the amount of
                                    such items shown on the return of the
                                    taxpayer for the preceding taxable year
                                    (the second preceding taxable year in
                                    the case of the first and second
                                    required installments for such taxable
                                    year).''
        (c) Effective Date.--The amendments made by this section shall
    apply for purposes of determining underpayments of estimated tax for
    taxable years beginning after December 31, 1994.

    SEC. 712. TIME FOR PAYMENTS AND DEPOSITS OF CERTAIN TAXES.

        (a) Deposits Required for Semimonthly Periods.--Subsection (f) of
    section 6302 (relating to collection authority) is amended to read as
    follows:
        ``(f) Time for Deposit of Certain Excise Taxes.--
                ``(1) General rule.--Except as otherwise provided in this
            subsection and subsection (e), if any person is required under
            regulations to make deposits of taxes under subtitle D with
            respect to semimonthly periods, such person shall make deposits
            of such taxes for the period beginning on September 16 and
            ending on September 26 not later than September 29. In the case
            of taxes imposed by sections 4261 and 4271, this paragraph
            shall not apply to periods before January 1, 1997.
                ``(2) Taxes on ozone depleting chemicals.--If any person is
            required under regulations to make deposits of taxes under
            subchapter D of chapter 38 with respect to semimonthly periods,
            in lieu of paragraph (1), such person shall make deposits of
            such taxes for--
                        ``(A) the second semimonthly period in August, and
                        ``(B) the period beginning on September 1 and
                    ending on September 11,
            not later than September 29.
                ``(3) Taxpayers not required to use electronic funds
            transfer.--In the case of deposits not required to be made by
            electronic funds transfer, paragraphs (1) and (2) shall be
            applied by substituting `September 25' for `September 26',
            `September 10' for `September 11', and `September 28' for
            `September 29'.
                ``(4) Special rule where due date on saturday or sunday.--
            If, but for this paragraph, the due date under paragraph (1),
            (2), or (3) would fall on a Saturday or Sunday, such due date
            shall be deemed to be--
                        ``(A) in the case of Saturday, the preceding day,
                    and
                        ``(B) in the case of Sunday, the following day.''
        (b) Taxes on Distilled Spirits, Wines, and Beer.--
                (1) Subsection (d) of section 5061 is amended by
            redesignating paragraph (4) as paragraph (5) and by inserting
            after paragraph (3) the following new paragraph:
                ``(4) Special rule for tax due in september.--
                        ``(A) In general.--Notwithstanding the preceding
                    provisions of this subsection, the taxes on distilled
                    spirits, wines, and beer for the period beginning on
                    September 16 and ending on September 26 shall be paid
                    not later than September 29.
                        ``(B) Safe harbor.--The requirement of subparagraph
                    (A) shall be treated as met if the amount paid not
                    later than September 29 is not less than \11/15\ of the
                    taxes on distilled spirits, wines, and beer for the
                    period beginning on September 1 and ending on September
                    15.
                        ``(C) Taxpayers not required to use electronic
                    funds transfer.--In the case of payments not required
                    to be made by electronic funds transfer, subparagraphs
                    (A) and (B) shall be applied by substituting `September
                    25' for `September 26', `September 28' for `September
                    29', and `\2/3\' for `\11/15\'.''
                (2) Section 5061(d)(5), as redesignated by paragraph (1),
            is amended--
                        (A) by inserting ``(or the immediately following
                    day where the due date described in paragraph (4) falls
                    on a Sunday)'' before the period at the end, and
                        (B) by striking ``14th day'' in the heading and
                    inserting ``due date''.
        (c) Tobacco Products and Cigarette Papers and Tubes.--
                (1) Paragraph (2) of section 5703(b) is amended by
            redesignating subparagraph (D) as subparagraph (E) and by
            inserting after subparagraph (C) the following new
            subparagraph:
                        ``(D) Special rule for tax due in september.--
                                ``(i) In general.--Notwithstanding the
                            preceding provisions of this paragraph, the
                            taxes on tobacco products and cigarette papers
                            and tubes for the period beginning on September
                            16 and ending on September 26 shall be paid not
                            later than September 29.
                                ``(ii) Safe harbor.--The requirement of
                            clause (i) shall be treated as met if the
                            amount paid not later than September 29 is not
                            less than \11/15\ of the taxes on tobacco
                            products and cigarette papers and tubes for the
                            period beginning on September 1 and ending on
                            September 15.
                                ``(iii) Taxpayers not required to use
                            electronic funds transfer.--In the case of
                            payments not required to be made by electronic
                            funds transfer, clauses (i) and (ii) shall be
                            applied by substituting `September 25' for
                            `September 26', `September 28' for `September
                            29', and `\2/3\' for `\11/15\'.''
                (2) Section 5703(b)(2)(E), as redesignated by paragraph
            (1), is amended--
                        (A) by inserting ``(or the immediately following
                    day where the due date described in subparagraph (D)
                    falls on a Sunday)'' before the period at the end, and
                        (B) by striking ``14th day'' in the heading and
                    inserting ``due date''.
        (d) Communication Services and Airline Tickets.--Subsection (e) of
    section 6302 is amended to read as follows:
        ``(e) Time for Deposit of Taxes on Communications Services and
    Airline Tickets.--
                ``(1) In general.--Except as provided in paragraph (2), if,
            under regulations prescribed by the Secretary, a person is
            required to make deposits of any tax imposed by section 4251 or
            subsection (a) or (b) of section 4261 with respect to amounts
            considered collected by such person during any semimonthly
            period, such deposit shall be made not later than the 3rd day
            (not including Saturdays, Sundays, or legal holidays) after the
            close of the 1st week of the 2nd semimonthly period following
            the period to which such amounts relate.
                ``(2) Special rule for tax due in september.--
                        ``(A) Amounts considered collected.--In the case of
                    a person required to make deposits of the tax imposed
                    by--
                                ``(i) section 4251, or
                                ``(ii) effective on January 1, 1997,
                            section 4261 or 4271,
                    with respect to amounts considered collected by such
                    person during any semimonthly period, the amount of
                    such tax included in bills rendered or tickets sold
                    during the period beginning on September 1 and ending
                    on September 11 shall be deposited not later than
                    September 29.
                        ``(B) Special rule where september 29 is on
                    saturday or sunday.--If September 29 falls on a
                    Saturday or Sunday, the due date under subparagraph (A)
                    shall be--
                                ``(i) in the case of Saturday, the
                            preceding day, and
                                ``(ii) in the case of Sunday, the following
                            day.
                        ``(C) Taxpayers not required to use electronic
                    funds transfer.--In the case of deposits not required
                    to be made by electronic funds transfer, subparagraphs
                    (A) and (B) shall be applied by substituting `September
                    10' for `September 11' and `September 28' for
                    `September 29'.''
        (e) Effective Date.--The amendments made by this section shall take
    effect on January 1, 1995.

    SEC. 713. REDUCTION IN RATE OF INTEREST PAID ON CERTAIN CORPORATE
                  OVERPAYMENTS.

        (a) In General.--Paragraph (1) of section 6621(a) (defining
    overpayment rate) is amended by adding at the end the following new
    flush sentence:
            ``To the extent that an overpayment of tax by a corporation for
            any taxable period (as defined in subsection (c)(3)) exceeds
            $10,000, subparagraph (B) shall be applied by substituting `0.5
            percentage point' for `2 percentage points'.''
        (b) Effective Date.--The amendment made by this section shall apply
    for purposes of determining interest for periods after December 31,
    1994.

                      Subtitle C--Earned Income Tax Credit

    SEC. 721. EXTENSION OF EARNED INCOME TAX CREDIT TO MILITARY PERSONNEL
                  STATIONED OUTSIDE THE UNITED STATES.

        (a) In General.--Subsection (c) of section 32 (relating to earned
    income credit) is amended by adding at the end the following new
    paragraph:
                ``(4) Treatment of military personnel stationed outside the
            united states.--For purposes of paragraphs (1)(A)(ii)(I) and
            (3)(E), the principal place of abode of a member of the Armed
            Forces of the United States shall be treated as in the United
            States during any period during which such member is stationed
            outside the United States while serving on extended active duty
            (as defined in section 1034(h)(3)) with the Armed Forces of the
            United States.''
        (b) Reporting of Military Earned Income.--Subsection (a) of section
    6051 (relating to receipts for employees) is amended by striking
    ``and'' at the end of paragraph (8), by striking the period at the end
    of paragraph (9) and by inserting ``, and'', and by inserting after
    paragraph (9) the following new paragraph:
                ``(10) in the case of an employee who is a member of the
            Armed Forces of the United States, such employee's earned
            income as determined for purposes of section 32 (relating to
            earned income credit).''
        (c) Advance Payment of Earned Income Credit Based on Military
    Earned Income.--Paragraph (1) of section 3507(c) (defining earned
    income advance amount) is amended by adding at the end the following
    new sentence:
            ``In the case of an employee who is a member of the Armed
            Forces of the United States, the earned income advance amount
            shall be determined by taking into account such employee's
            earned income as determined for purposes of section 32.''
        (d) Effective Dates.--
                (1) Subsection (a).--The amendment made by subsection (a)
            shall apply to taxable years beginning after December 31, 1994.
                (2) Subsections (b) and (c).--The amendments made by
            subsections (b) and (c) shall apply to remuneration paid after
            December 31, 1994.

    SEC. 722. CERTAIN NONRESIDENT ALIENS INELIGIBLE FOR EARNED INCOME TAX
                  CREDIT.

        (a) In General.--Paragraph (1) of section 32(c) (defining eligible
    individual) is amended by adding at the end the following new
    subparagraph:
                        ``(E) Limitation on eligibility of nonresident
                    aliens.--The term `eligible individual' shall not
                    include any individual who is a nonresident alien
                    individual for any portion of the taxable year unless
                    such individual is treated for such taxable year as a
                    resident of the United States for purposes of this
                    chapter by reason of an election under subsection (g)
                    or (h) of section 6013.''
        (b) Effective Date.--The amendment made by subsection (a) shall
    apply to taxable years beginning after December 31, 1994.

    SEC. 723. INCOME OF PRISONERS DISREGARDED IN DETERMINING EARNED INCOME
                  TAX CREDIT.

        (a) In General.--Subparagraph (B) of section 32(c)(2) (defining
    earned income) is amended by striking ``and'' at the end of clause
    (ii), by striking the period at the end of clause (iii) and inserting
    ``, and'', and by adding at the end the following new clause:
                                ``(iv) no amount received for services
                            provided by an individual while the individual
                            is an inmate at a penal institution shall be
                            taken into account.''
        (b) Effective Date.--The amendment made by subsection (a) shall
    apply to taxable years beginning after December 31, 1993.

             Subtitle D--Provisions Relating To Retirement Benefits

    SEC. 731. TREATMENT OF EXCESS PENSION ASSETS USED FOR RETIREE HEALTH
                  BENEFITS.

        (a) 5-Year Extension.--Paragraph (5) of section 420(b) (defining
    qualified transfer) is amended by striking ``1995'' and inserting
    ``2000''.
        (b) Minimum Benefit Requirements.--Paragraph (3) of section 420(c)
    (relating to requirements of plans transferring assets) is amended to
    read as follows:
                ``(3) Maintenance of benefit requirements.--
                        ``(A) In general.--The requirements of this
                    paragraph are met if each group health plan or
                    arrangement under which applicable health benefits are
                    provided provides that the applicable health benefits
                    provided by the employer during each taxable year
                    during the benefit maintenance period are substantially
                    the same as the applicable health benefits provided by
                    the employer during the taxable year immediately
                    preceding the taxable year of the qualified transfer.
                        ``(B) Election to apply separately.--An employer
                    may elect to have this paragraph applied separately
                    with respect to individuals eligible for benefits under
                    title XVIII of the Social Security Act at any time
                    during the taxable year and with respect to individuals
                    not so eligible.
                        ``(C) Benefit maintenance period.--For purposes of
                    this paragraph, the term `benefit maintenance period'
                    means the period of 5 taxable years beginning with the
                    taxable year in which the qualified transfer occurs. If
                    a taxable year is in 2 or more benefit maintenance
                    periods, this paragraph shall be applied by taking into
                    account the highest level of benefits required to be
                    provided under subparagraph (A) for such taxable
                    year.''
        (c) Conforming Amendments.--
                (1) Clause (iii) of section 420(b)(1)(C) is amended by
            striking ``cost'' and inserting ``benefits''.
                (2) Subparagraph (B) of section 420(e)(1) is amended to
            read as follows:
                        ``(B) Reductions for amounts previously set
                    aside.--The amount determined under subparagraph (A)
                    shall be reduced by the amount which bears the same
                    ratio to such amount as--
                                ``(i) the value (as of the close of the
                            plan year preceding the year of the qualified
                            transfer) of the assets in all health benefits
                            accounts or welfare benefit funds (as defined
                            in section 419(e)(1)) set aside to pay for the
                            qualified current retiree health liability,
                            bears to
                                ``(ii) the present value of the qualified
                            current retiree health liabilities for all plan
                            years (determined without regard to this
                            subparagraph).''
                (3) Subparagraph (D) of section 420(e)(1) is amended by
            striking ``or in calculating applicable employer cost under
            subsection (c)(3)(B)'' and inserting ``and shall not be subject
            to the minimum benefit requirements of subsection (c)(3)''.
                (4)(A) Section 101(e)(3) of the Employee Retirement Income
            Security Act of 1974 (29 U.S.C. 1021(e)(3)) is amended by
            striking ``1991'' and inserting ``1995''.
                (B) Section 403(c)(1) of such Act (29 U.S.C. 1103(c)(1)) is
            amended by striking ``1991'' and inserting ``1995''.
                (C) Paragraph (13) of section 408(b) of such Act (29 U.S.C.
            1108(b)(13)) is amended--
                        (i) by striking ``1996'' and inserting ``2001'',
                    and
                        (ii) by striking ``1991'' and inserting ``1995''.
        (d) Effective Dates.--
                (1) Extension.--The amendments made by subsections (a) and
            (c)(3) shall apply to taxable years beginning after December
            31, 1995.
                (2) Benefits.--The amendments made by subsections (b) and
            (c)(1) and (2) shall apply to qualified transfers occurring
            after the date of the enactment of this Act.

    SEC. 732. ROUNDING RULES FOR COST-OF-LIVING ADJUSTMENTS.

        (a) Cost-of-Living Adjustment for Compensation Limit.--Section
    401(a)(17)(B) is amended to read as follows:
                        ``(B) Cost-of-living adjustment.--The Secretary
                    shall adjust annually the $150,000 amount in
                    subparagraph (A) for increases in the cost-of-living at
                    the same time and in the same manner as adjustments
                    under section 415(d); except that the base period shall
                    be the calendar quarter beginning October 1, 1993, and
                    any increase which is not a multiple of $10,000 shall
                    be rounded to the next lowest multiple of $10,000.''
        (b) Cost-of-Living Adjustment for Maximum Defined Benefit Amount
    and Maximum Annual Addition.--
                (1) In general.--Section 415(d) is amended to read as
            follows:
        ``(d) Cost-of-Living Adjustments.--
                ``(1) In general.--The Secretary shall adjust annually--
                        ``(A) the $90,000 amount in subsection (b)(1)(A),
                        ``(B) in the case of a participant who separated
                    from service, the amount taken into account under
                    subsection (b)(1)(B), and
                        ``(C) the $30,000 amount in subsection (c)(1)(A),
            for increases in the cost-of-living in accordance with
            regulations prescribed by the Secretary.
                ``(2) Method.--The regulations prescribed under paragraph
            (1) shall provide for--
                        ``(A) an adjustment with respect to any calendar
                    year based on the increase in the applicable index for
                    the calendar quarter ending September 30 of the
                    preceding calendar year over such index for the base
                    period, and
                        ``(B) adjustment procedures which are similar to
                    the procedures used to adjust benefit amounts under
                    section 215(i)(2)(A) of the Social Security Act.
                ``(3) Base period.--For purposes of paragraph (2)--
                        ``(A) $90,000 amount.--The base period taken into
                    account for purposes of paragraph (1)(A) is the
                    calendar quarter beginning October 1, 1986.
                        ``(B) Separations after december 31, 1994.--The
                    base period taken into account for purposes of
                    paragraph (1)(B) with respect to individuals separating
                    from service with the employer after December 31, 1994,
                    is the calendar quarter beginning July 1 of the
                    calendar year preceding the calendar year in which such
                    separation occurs.
                        ``(C) Separations before january 1, 1995.--The base
                    period taken into account for purposes of paragraph
                    (1)(B) with respect to individuals separating from
                    service with the employer before January 1, 1995, is
                    the calendar quarter beginning October 1 of the
                    calendar year preceding the calendar year in which such
                    separation occurs.
                        ``(D) $30,000 amount.--The base period taken into
                    account for purposes of paragraph (1)(C) is the
                    calendar quarter beginning October 1, 1993.
                ``(4) Rounding.--Any increase under subparagraph (A) or (C)
            of paragraph (1) which is not a multiple of $5,000 shall be
            rounded to the next lowest multiple of $5,000.''
                (2) Conforming amendment.--Section 415(c)(1)(A) is amended
            by striking ``(or, if greater, \1/4\ of the dollar limitation
            in effect under subsection (b)(1)(A))''.
        (c) Cost-of-Living Adjustment for Maximum Salary Deferral.--Section
    402(g)(5) is amended by inserting before the period ``; except that any
    increase under this paragraph which is not a multiple of $500 shall be
    rounded to the next lowest multiple of $500''.
        (d) Cost-of-Living Adjustment for Eligibility for Simplified
    Employee Pensions.--Section 408(k)(8) is amended by inserting before
    the period ``; except that any increase in the $300 amount which is not
    a multiple of $50 shall be rounded to the next lowest multiple of
    $50''.
        (e) Effective Dates.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall apply to years beginning
            after December 31, 1994.
                (2) Rounding not to result in decreases.--The amendments
            made by this section providing for the rounding of indexed
            amounts shall not apply to any year to the extent the rounding
            would require the indexed amount to be reduced below the amount
            in effect for years beginning in 1994.

    SEC. 733. INCREASE IN INCLUSION OF SOCIAL SECURITY BENEFITS PAID TO
                  NONRESIDENTS.

        (a) In General.--Subparagraph (A) of section 871(a)(3) (relating to
    taxation of Social Security benefits) is amended by striking ``one-
    half'' and inserting ``85 percent''.
        (b) Effective Date.--The amendment made by subsection (a) shall
    apply to benefits paid after December 31, 1994, in taxable years ending
    after such date.

                          Subtitle E--Other Provisions

    SEC. 741. PARTNERSHIP DISTRIBUTIONS OF MARKETABLE SECURITIES.

        (a) In General.--Section 731 (relating to extent of recognition of
    gain or loss on distribution) is amended by redesignating subsection
    (c) as subsection (d) and by inserting after subsection (b) the
    following new subsection:
        ``(c) Treatment of Marketable Securities.--
                ``(1) In general.--For purposes of subsection (a)(1) and
            section 737--
                        ``(A) the term `money' includes marketable
                    securities, and
                        ``(B) such securities shall be taken into account
                    at their fair market value as of the date of the
                    distribution.
                ``(2) Marketable securities.--For purposes of this
            subsection:
                        ``(A) In general.--The term `marketable securities'
                    means financial instruments and foreign currencies
                    which are, as of the date of the distribution, actively
                    traded (within the meaning of section 1092(d)(1)).
                        ``(B) Other property.--Such term includes--
                                ``(i) any interest in--
                                        ``(I) a common trust fund, or
                                        ``(II) a regulated investment
                                    company which is offering for sale or
                                    has outstanding any redeemable security
                                    (as defined in section 2(a)(32) of the
                                    Investment Company Act of 1940) of
                                    which it is the issuer,
                                ``(ii) any financial instrument which,
                            pursuant to its terms or any other arrangement,
                            is readily convertible into, or exchangeable
                            for, money or marketable securities,
                                ``(iii) any financial instrument the value
                            of which is determined substantially by
                            reference to marketable securities,
                                ``(iv) except to the extent provided in
                            regulations prescribed by the Secretary, any
                            interest in a precious metal which, as of the
                            date of the distribution, is actively traded
                            (within the meaning of section 1092(d)(1))
                            unless such metal was produced, used, or held
                            in the active conduct of a trade or business by
                            the partnership,
                                ``(v) except as otherwise provided in
                            regulations prescribed by the Secretary,
                            interests in any entity if substantially all of
                            the assets of such entity consist (directly or
                            indirectly) of marketable securities, money, or
                            both, and
                                ``(vi) to the extent provided in
                            regulations prescribed by the Secretary, any
                            interest in an entity not described in clause
                            (v) but only to the extent of the value of such
                            interest which is attributable to marketable
                            securities, money, or both.
                        ``(C) Financial instrument.--The term `financial
                    instrument' includes stocks and other equity interests,
                    evidences of indebtedness, options, forward or futures
                    contracts, notional principal contracts, and
                    derivatives.
                ``(3) Exceptions.--
                        ``(A) In general.--Paragraph (1) shall not apply to
                    the distribution from a partnership of a marketable
                    security to a partner if--
                                ``(i) the security was contributed to the
                            partnership by such partner, except to the
                            extent that the value of the distributed
                            security is attributable to marketable
                            securities or money contributed (directly or
                            indirectly) to the entity to which the
                            distributed security relates,
                                ``(ii) to the extent provided in
                            regulations prescribed by the Secretary, the
                            property was not a marketable security when
                            acquired by such partnership, or
                                ``(iii) such partnership is an investment
                            partnership and such partner is an eligible
                            partner thereof.
                        ``(B) Limitation on gain recognized.--In the case
                    of a distribution of marketable securities to a
                    partner, the amount taken into account under paragraph
                    (1) shall be reduced (but not below zero) by the excess
                    (if any) of--
                                ``(i) such partner's distributive share of
                            the net gain which would be recognized if all
                            of the marketable securities of the same class
                            and issuer as the distributed securities held
                            by the partnership were sold (immediately
                            before the transaction to which the
                            distribution relates) by the partnership for
                            fair market value, over
                                ``(ii) such partner's distributive share of
                            the net gain which is attributable to the
                            marketable securities of the same class and
                            issuer as the distributed securities held by
                            the partnership immediately after the
                            transaction, determined by using the same fair
                            market value as used under clause (i).
                    Under regulations prescribed by the Secretary, all
                    marketable securities held by the partnership may be
                    treated as marketable securities of the same class and
                    issuer as the distributed securities.
                        ``(C) Definitions relating to investment
                    partnerships.--For purposes of subparagraph (A)(iii):
                                ``(i) Investment partnership.--The term
                            `investment partnership' means any partnership
                            which has never been engaged in a trade or
                            business and substantially all of the assets
                            (by value) of which have always consisted of--
                                        ``(I) money,
                                        ``(II) stock in a corporation,
                                        ``(III) notes, bonds, debentures,
                                    or other evidences of indebtedness,
                                        ``(IV) interest rate, currency, or
                                    equity notional principal contracts,
                                        ``(V) foreign currencies,
                                        ``(VI) interests in or derivative
                                    financial instruments (including
                                    options, forward or futures contracts,
                                    short positions, and similar financial
                                    instruments) in any asset described in
                                    any other subclause of this clause or
                                    in any commodity traded on or subject
                                    to the rules of a board of trade or
                                    commodity exchange,
                                        ``(VII) other assets specified in
                                    regulations prescribed by the
                                    Secretary, or
                                        ``(VIII) any combination of the
                                    foregoing.
                                ``(ii) Exception for certain activities.--A
                            partnership shall not be treated as engaged in
                            a trade or business by reason of--
                                        ``(I) any activity undertaken as an
                                    investor, trader, or dealer in any
                                    asset described in clause (i), or
                                        ``(II) any other activity specified
                                    in regulations prescribed by the
                                    Secretary.
                                ``(iii) Eligible partner.--
                                        ``(I) In general.--The term
                                    `eligible partner' means any partner
                                    who, before the date of the
                                    distribution, did not contribute to the
                                    partnership any property other than
                                    assets described in clause (i).
                                        ``(II) Exception for certain
                                    nonrecognition transactions.--The term
                                    `eligible partner' shall not include
                                    the transferor or transferee in a
                                    nonrecognition transaction involving a
                                    transfer of any portion of an interest
                                    in a partnership with respect to which
                                    the transferor was not an eligible
                                    partner.
                                ``(iv) Look-thru of partnership tiers.--
                            Except as otherwise provided in regulations
                            prescribed by the Secretary--
                                        ``(I) a partnership shall be
                                    treated as engaged in any trade or
                                    business engaged in by, and as holding
                                    (instead of a partnership interest) a
                                    proportionate share of the assets of,
                                    any other partnership in which the
                                    partnership holds a partnership
                                    interest, and
                                        ``(II) a partner who contributes to
                                    a partnership an interest in another
                                    partnership shall be treated as
                                    contributing a proportionate share of
                                    the assets of the other partnership.
                            If the preceding sentence does not apply under
                            such regulations with respect to any interest
                            held by a partnership in another partnership,
                            the interest in such other partnership shall be
                            treated as if it were specified in a subclause
                            of clause (i).
                ``(4) Basis of securities distributed.--
                        ``(A) In general.--The basis of marketable
                    securities with respect to which gain is recognized by
                    reason of this subsection shall be--
                                ``(i) their basis determined under section
                            732, increased by
                                ``(ii) the amount of such gain.
                        ``(B) Allocation of basis increase.--Any increase
                    in basis attributable to the gain described in
                    subparagraph (A)(ii) shall be allocated to marketable
                    securities in proportion to their respective amounts of
                    unrealized appreciation before such increase.
                ``(5) Subsection disregarded in determining basis of
            partner's interest in partnership and of basis of partnership
            property.--Sections 733 and 734 shall be applied as if no gain
            were recognized, and no adjustment were made to the basis of
            property, under this subsection.
                ``(6) Character of gain recognized.--In the case of a
            distribution of a marketable security which is an unrealized
            receivable (as defined in section 751(c)) or an inventory item
            (as defined in section 751(d)(2)), any gain recognized under
            this subsection shall be treated as ordinary income to the
            extent of any increase in the basis of such security
            attributable to the gain described in paragraph (4)(A)(ii).
                ``(7) Regulations.--The Secretary shall prescribe such
            regulations as may be necessary or appropriate to carry out the
            purposes of this subsection, including regulations to prevent
            the avoidance of such purposes.''
        (b) Conforming Amendments.--
                (1) The last sentence of section 737(c)(1) is amended to
            read as follows: ``For purposes of determining the basis of the
            distributed property (other than money), such increase shall be
            treated as occurring immediately before the distribution.''
                (2) Section 737 is amended by adding at the end the
            following new subsection:
        ``(e) Marketable Securities Treated as Money.--

                                    ``For treatment of marketable
    securities as money for purposes of this section, see section 731(c).''
        (c) Effective Date.--
                (1) In general.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply to
            distributions after the date of the enactment of this Act.
                (2) Certain distributions before january 1, 1995.--The
            amendments made by this section shall not apply to any
            marketable security distributed before January 1, 1995, by the
            partnership which held such security on July 27, 1994.
                (3) Distributions in liquidation of partner's interest.--
            The amendments made by this section shall not apply to the
            distribution of a marketable security in liquidation of a
            partner's interest in a partnership if--
                        (A) such liquidation is pursuant to a written
                    contract which was binding on July 15, 1994, and at all
                    times thereafter before the distribution, and
                        (B) such contract provides for the purchase of such
                    interest not later than a date certain for--
                                (i) a fixed value of marketable securities
                            that are specified in the contract, or
                                (ii) other property.
            The preceding sentence shall not apply if the partner has the
            right to elect that such distribution be made other than in
            marketable securities.
                (4) Distributions in complete liquidation of publicly
            traded partnerships.--
                        (A) In general.--The amendments made by this
                    section shall not apply to the distribution of a
                    marketable security in a qualified partnership
                    liquidation if--
                                (i) the marketable securities were received
                            by the partnership in a nonrecognition
                            transaction in exchange for substantially all
                            of the assets of the partnership,
                                (ii) the marketable securities are
                            distributed by the partnership within 90 days
                            after their receipt by the partnership, and
                                (iii) the partnership is liquidated before
                            the beginning of the 1st taxable year of the
                            partnership beginning after December 31, 1997.
                        (B) Qualified partnership liquidation.--For
                    purposes of subparagraph (A), the term ``qualified
                    partnership liquidation'' means--
                                (i) a complete liquidation of a publicly
                            traded partnership (as defined in section
                            7704(b) of the Internal Revenue Code of 1986)
                            which is an existing partnership (as defined in
                            section 10211(c)(2) of the Revenue Act of
                            1987), and
                                (ii) a complete liquidation of a
                            partnership which is related to a partnership
                            described in clause (i) if such liquidation is
                            related to a complete liquidation of the
                            partnership described in clause (i).
                (5) Marketable securities.--For purposes of this
            subsection, the term ``marketable securities'' has the meaning
            given such term by section 731(c) of the Internal Revenue Code
            of 1986, as added by this section.

    SEC. 742. TAXPAYER IDENTIFICATION NUMBERS REQUIRED AT BIRTH.

        (a) Earned Income Credit.--Clause (i) of section 32(c)(3)(D) is
    amended to read as follows:
                                ``(i) In general.--The requirements of this
                            subparagraph are met if the taxpayer includes
                            the name, age, and TIN of each qualifying child
                            (without regard to this subparagraph) on the
                            return of tax for the taxable year.''
        (b) Dependency Exemption.--Subsection (e) of section 6109 is
    amended to read as follows:
        ``(e) Furnishing Number for Dependents.--Any taxpayer who claims an
    exemption under section 151 for any dependent on a return for any
    taxable year shall include on such return the identifying number (for
    purposes of this title) of such dependent.''
        (c) Effective Date.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall apply to returns for
            taxable years beginning after December 31, 1994.
                (2) Exception.--The amendments made by this section shall
            not apply to--
                        (A) returns for taxable years beginning in 1995
                    with respect to individuals who are born after October
                    31, 1995, and
                        (B) returns for taxable years beginning in 1996
                    with respect to individuals who are born after November
                    30, 1996.

    SEC. 743. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

        Subsection (c) of section 10511 of the Revenue Act of 1987
    (relating to fees for requests for ruling, determination, and similar
    letters) is amended by striking ``October 1, 1995'' and inserting
    ``October 1, 2000''.

    SEC. 744. MODIFICATION OF SUBSTANTIAL UNDERSTATEMENT PENALTY FOR
                  CORPORATIONS PARTICIPATING IN TAX SHELTERS.

        (a) In General.--Subparagraph (C) of section 6662(d)(2) (relating
    to special rules in cases involving tax shelters) is amended by
    redesignating clause (ii) as clause (iii) and by inserting after clause
    (i) the following new clause:
                                ``(ii) Subparagraph (b) not to apply to
                            corporations.--Subparagraph (B) shall not apply
                            to any item of a corporation which is
                            attributable to a tax shelter.''
        (b) Technical Amendments.--
                (1) Clause (i) of section 6662(d)(2)(C) is amended by
            striking ``In the case of any item'' and inserting ``In the
            case of any item of a taxpayer other than a corporation which
            is''.
                (2) Clause (iii) of section 6662(d)(2)(C), as redesignated
            by subsection (a), is amended by striking ``clause (i)'' and
            inserting ``this subparagraph''.
        (c) Effective Date.--The amendments made by this section shall
    apply to items related to transactions occurring after the date of the
    enactment of this Act.

    SEC. 745. MODIFICATION OF AUTHORITY TO SET TERMS AND CONDITIONS FOR
                  SAVINGS BONDS.

        (a) In General.--Subsection (b) of section 3105 of title 31, United
    States Code, is amended to read as follows:
        ``(b)(1) The Secretary may--
                ``(A) fix the investment yield for savings bonds; and
                ``(B) change the investment yield on an outstanding savings
            bond, except that the yield on a bond for the period held may
            not be decreased below the minimum yield for the period
            guaranteed on the date of issue.
        ``(2) The Secretary may prescribe regulations providing that--
                ``(A) owners of savings bonds may keep the bonds after
            maturity or after a period beyond maturity during which the
            bonds have earned interest and continue to earn interest at
            rates consistent with paragraph (1) of this subsection; and
                ``(B) savings bonds earning a different rate of interest
            before the regulations are prescribed shall earn a rate of
            interest consistent with paragraph (1).''
        (b) Effective Date.--The amendment made by this section shall apply
    to bonds issued after October 31, 1994.

                 Subtitle F--Pension Plan Funding and Premiums

    SEC. 750. SHORT TITLE.

        This subtitle may be cited as the ``Retirement Protection Act of
    1994''.

                          PART I--PENSION PLAN FUNDING

           Subpart A--Amendments to the Internal Revenue Code of 1986

    SEC. 751. MINIMUM FUNDING REQUIREMENTS.

        (a) Amendments to Additional Funding Requirements for Single-
    Employer Plans.--
                (1) Limitations on additional funding requirement for
            certain plans.--
                        (A) In general.--Paragraph (1) of section 412(l)
                    (relating to additional funding requirements for plans
                    which are not multiemployer plans) is amended by
                    striking ``which has an unfunded current liability''
                    and inserting ``to which this subsection applies under
                    paragraph (9)''.
                        (B) Plans to which requirement applies.--Section
                    412(l) is amended by adding at the end the following
                    new paragraph:
                ``(9) Applicability of subsection.--
                        ``(A) In general.--Except as provided in paragraph
                    (6)(A), this subsection shall apply to a plan for any
                    plan year if its funded current liability percentage
                    for such year is less than 90 percent.
                        ``(B) Exception for certain plans at least 80
                    percent funded.--Subparagraph (A) shall not apply to a
                    plan for a plan year if--
                                ``(i) the funded current liability
                            percentage for the plan year is at least 80
                            percent, and
                                ``(ii) such percentage for each of the 2
                            immediately preceding plan years (or each of
                            the 2d and 3d immediately preceding plan years)
                            is at least 90 percent.
                        ``(C) Funded current liability percentage.--For
                    purposes of subparagraphs (A) and (B), the term `funded
                    current liability percentage' has the meaning given
                    such term by paragraph (8)(B), except that such
                    percentage shall be determined for any plan year--
                                ``(i) without regard to paragraph (8)(E),
                            and
                                ``(ii) by using the rate of interest which
                            is the highest rate allowable for the plan year
                            under paragraph (7)(C).
                        ``(D) Transition rules.--For purposes of this
                    paragraph:
                                ``(i) Funded percentage for years before
                            1995.--The funded current liability percentage
                            for any plan year beginning before January 1,
                            1995, shall be treated as not less than 90
                            percent only if for such plan year the plan met
                            one of the following requirements (as in effect
                            for such year):
                                        ``(I) The full-funding limitation
                                    under subsection (c)(7) for the plan
                                    was zero.
                                        ``(II) The plan had no additional
                                    funding requirement under this
                                    subsection (or would have had no such
                                    requirement if its funded current
                                    liability percentage had been
                                    determined under subparagraph (C)).
                                        ``(III) The plan's additional
                                    funding requirement under this
                                    subsection did not exceed the lesser of
                                    0.5 percent of current liability or
                                    $5,000,000.
                                ``(ii) Special rule for 1995 and 1996.--For
                            purposes of determining whether subparagraph
                            (B) applies to any plan year beginning in 1995
                            or 1996, a plan shall be treated as meeting the
                            requirements of subparagraph (B)(ii) if the
                            plan met the requirements of clause (i) of this
                            subparagraph for any two of the plan years
                            beginning in 1992, 1993, and 1994 (whether or
                            not consecutive).''
                (2) Relationship of additional funding requirement to
            funding standard account charges and credits.--
                        (A) Clause (ii) of section 412(l)(1)(A) is amended
                    to read as follows:
                                ``(ii) the sum of the charges for such plan
                            year under subsection (b)(2), reduced by the
                            sum of the credits for such plan year under
                            subparagraph (B) of subsection (b)(3), plus''.
                        (B) The last sentence in section 412(l)(1) of such
                    Code is amended to read as follows:
            ``Such increase shall not exceed the amount which, after taking
            into account charges (other than the additional charge under
            this subsection) and credits under subsection (b), is necessary
            to increase the funded current liability percentage (taking
            into account the expected increase in current liability due to
            benefits accruing during the plan year) to 100 percent.''
                (3) Amendment to deficit reduction contribution.--Paragraph
            (2) of section 412(l) is amended--
                        (A) by striking ``plus'' at the end of subparagraph
                    (A);
                        (B) by striking the period at the end of
                    subparagraph (B) and inserting ``, plus''; and
                        (C) by adding at the end the following new
                    subparagraph:
                        ``(C) the expected increase in current liability
                    due to benefits accruing during the plan year.''
                (4) Increase in current liability due to change in required
            assumptions.--
                        (A) Paragraph (3) of section 412(l) is amended by
                    adding at the end the following new subparagraphs:
                        ``(D) Special rule for required changes in
                    actuarial assumptions.--
                                ``(i) In general.--The unfunded old
                            liability amount with respect to any plan for
                            any plan year shall be increased by the amount
                            necessary to amortize the amount of additional
                            unfunded old liability under the plan in equal
                            annual installments over a period of 12 plan
                            years (beginning with the first plan year
                            beginning after December 31, 1994).
                                ``(ii) Additional unfunded old liability.--
                            For purposes of clause (i), the term
                            `additional unfunded old liability' means the
                            amount (if any) by which--
                                        ``(I) the current liability of the
                                    plan as of the beginning of the first
                                    plan year beginning after December 31,
                                    1994, valued using the assumptions
                                    required by paragraph (7)(C) as in
                                    effect for plan years beginning after
                                    December 31, 1994, exceeds
                                        ``(II) the current liability of the
                                    plan as of the beginning of such first
                                    plan year, valued using the same
                                    assumptions used under subclause (I)
                                    (other than the assumptions required by
                                    paragraph (7)(C)), using the prior
                                    interest rate, and using such mortality
                                    assumptions as were used to determine
                                    current liability for the first plan
                                    year beginning after December 31, 1992.
                                ``(iii) Prior interest rate.--For purposes
                            of clause (ii), the term `prior interest rate'
                            means the rate of interest that is the same
                            percentage of the weighted average under
                            subsection (b)(5)(B)(ii)(I) for the first plan
                            year beginning after December 31, 1994, as the
                            rate of interest used by the plan to determine
                            current liability for the first plan year
                            beginning after December 31, 1992, is of the
                            weighted average under subsection
                            (b)(5)(B)(ii)(I) for such first plan year
                            beginning after December 31, 1992.
                        ``(E) Optional rule for additional unfunded old
                    liability.--
                                ``(i) In general.--If an employer makes an
                            election under clause (ii), the additional
                            unfunded old liability for purposes of
                            subparagraph (D) shall be the amount (if any)
                            by which--
                                        ``(I) the unfunded current
                                    liability of the plan as of the
                                    beginning of the first plan year
                                    beginning after December 31, 1994,
                                    valued using the assumptions required
                                    by paragraph (7)(C) as in effect for
                                    plan years beginning after December 31,
                                    1994, exceeds
                                        ``(II) the unamortized portion of
                                    the unfunded old liability under the
                                    plan as of the beginning of the first
                                    plan year beginning after December 31,
                                    1994.
                                ``(ii) Election.--
                                        ``(I) An employer may irrevocably
                                    elect to apply the provisions of this
                                    subparagraph as of the beginning of the
                                    first plan year beginning after
                                    December 31, 1994.
                                        ``(II) If an election is made under
                                    this clause, the increase under
                                    paragraph (1) for any plan year
                                    beginning after December 31, 1994, and
                                    before January 1, 2002, to which this
                                    subsection applies (without regard to
                                    this subclause) shall not be less than
                                    the increase that would be required
                                    under paragraph (1) if the provisions
                                    of this title as in effect for the last
                                    plan year beginning before January 1,
                                    1995, had remained in effect.''
                        (B) Clause (i) of section 412(l)(4)(B) is amended
                    by inserting ``, the unamortized portion of the
                    additional unfunded old liability,'' after ``old
                    liability''.
                (5) Applicable percentage for determining unfunded new
            liability amount.--Subparagraph (C) of section 412(l)(4) is
            amended--
                        (A) by striking ``.25'' and inserting ``.40'', and
                        (B) by striking ``35'' and inserting ``60''.
                (6) Unpredictable contingent event amount.--
                        (A) Subparagraph (A) of section 412(l)(5) is
                    amended--
                                (i) by striking ``greater of'' and
                            inserting ``greatest of'' before clause (i);
                                (ii) by striking ``or'' at the end of
                            clause (i);
                                (iii) by striking the period at the end of
                            clause (ii) and inserting ``, or''; and
                                (iv) by adding after clause (ii) the
                            following new clause:
                                ``(iii) the additional amount that would be
                            determined under paragraph (4)(A) if the
                            unpredictable contingent event benefit
                            liabilities were included in unfunded new
                            liability notwithstanding paragraph
                            (4)(B)(ii).''
                        (B) Paragraph (5) of section 412(l) is amended by
                    adding at the end the following new subparagraph:
                        ``(E) Limitation.--The present value of the amounts
                    described in subparagraph (A) with respect to any one
                    event shall not exceed the unpredictable contingent
                    event benefit liabilities attributable to that event.''
                        (C) Clause (ii) of section 412(m)(4)(D) is
                    amended--
                                (i) by striking ``greater of'' and
                            inserting ``greatest of'' before subclause (I);
                                (ii) by striking ``or'' at the end of
                            subclause (I);
                                (iii) by striking the period at the end of
                            subclause (II) and inserting ``, or''; and
                                (iv) by adding after subclause (II) the
                            following new clause:
                                        ``(III) 25 percent of the amount
                                    determined under subsection
                                    (l)(5)(A)(iii) for the plan year.''
                (7) Required interest rate and mortality assumptions for
            determining current liability.--
                        (A) In general.--Subparagraph (C) of section
                    412(l)(7) is amended to read as follows:
                        ``(C) Interest rate and mortality assumptions
                    used.--Effective for plan years beginning after
                    December 31, 1994--
                                ``(i) Interest rate.--
                                        ``(I) In general.--The rate of
                                    interest used to determine current
                                    liability under this subsection shall
                                    be the rate of interest used under
                                    subsection (b)(5), except that the
                                    highest rate in the permissible range
                                    under subparagraph (B)(ii) thereof
                                    shall not exceed the specified
                                    percentage under subclause (II) of the
                                    weighted average referred to in such
                                    subparagraph.
                                        ``(II) Specified percentage.--For
                                    purposes of subclause (I), the
                                    specified percentage shall be
                                    determined as follows:

                             ``In the case of
                               plan years beginning
                                                              The specified
                               in calendar year:
                                                             percentage is:
                                     1995................               109
                                     1996................               108
                                     1997................               107
                                     1998................               106
                                     1999 and thereafter.              105.
                                ``(ii) Mortality tables.--
                                        ``(I) Commissioners' standard
                                    table.--In the case of plan years
                                    beginning before the first plan year to
                                    which the first tables prescribed under
                                    subclause (II) apply, the mortality
                                    table used in determining current
                                    liability under this subsection shall
                                    be the table prescribed by the
                                    Secretary which is based on the
                                    prevailing commissioners' standard
                                    table (described in section
                                    807(d)(5)(A)) used to determine
                                    reserves for group annuity contracts
                                    issued on January 1, 1993.
                                        ``(II) Secretarial authority.--The
                                    Secretary may by regulation prescribe
                                    for plan years beginning after December
                                    31, 1999, mortality tables to be used
                                    in determining current liability under
                                    this subsection. Such tables shall be
                                    based upon the actual experience of
                                    pension plans and projected trends in
                                    such experience. In prescribing such
                                    tables, the Secretary shall take into
                                    account results of available
                                    independent studies of mortality of
                                    individuals covered by pension plans.
                                        ``(III) Periodic review.--The
                                    Secretary shall periodically (at least
                                    every 5 years) review any tables in
                                    effect under this subsection and shall,
                                    to the extent the Secretary determines
                                    necessary, by regulation update the
                                    tables to reflect the actual experience
                                    of pension plans and projected trends
                                    in such experience.
                                ``(iii) Separate mortality tables for the
                            disabled.--Notwithstanding clause (ii)--
                                        ``(I) In general.--In the case of
                                    plan years beginning after December 31,
                                    1995, the Secretary shall establish
                                    mortality tables which may be used (in
                                    lieu of the tables under clause (ii))
                                    to determine current liability under
                                    this subsection for individuals who are
                                    entitled to benefits under the plan on
                                    account of disability. The Secretary
                                    shall establish separate tables for
                                    individuals whose disabilities occur in
                                    plan years beginning before January 1,
                                    1995, and for individuals whose
                                    disabilities occur in plan years
                                    beginning on or after such date.
                                        ``(II) Special rule for
                                    disabilities occurring after 1994.--In
                                    the case of disabilities occurring in
                                    plan years beginning after December 31,
                                    1994, the tables under subclause (I)
                                    shall apply only with respect to
                                    individuals described in such subclause
                                    who are disabled within the meaning of
                                    title II of the Social Security Act and
                                    the regulations thereunder.
                                        ``(III) Plan years beginning in
                                    1995.--In the case of any plan year
                                    beginning in 1995, a plan may use its
                                    own mortality assumptions for
                                    individuals who are entitled to
                                    benefits under the plan on account of
                                    disability.''
                        (B) Amortization of unfunded mortality increase
                    amount.--
                                (i) In general.--Paragraph (2) of section
                            412(l), as amended by paragraph (3), is amended
                            by striking ``plus'' at the end of subparagraph
                            (B), by striking the period at the end of
                            subparagraph (C) and inserting ``, and'', and
                            by adding at the end the following new
                            subparagraph:
                        ``(D) the aggregate of the unfunded mortality
                    increase amounts.''
                                (ii) Unfunded mortality increase amount.--
                            Section 412(l), as amended by paragraph (1), is
                            amended by adding at the end the following new
                            paragraph:
                ``(10) Unfunded mortality increase amount.--
                        ``(A) In general.--The unfunded mortality increase
                    amount with respect to each unfunded mortality increase
                    is the amount necessary to amortize such increase in
                    equal annual installments over a period of 10 plan
                    years (beginning with the first plan year for which a
                    plan uses any new mortality table issued under
                    paragraph (7)(C)(ii)(II) or (III)).
                        ``(B) Unfunded mortality increase.--For purposes of
                    subparagraph (A), the term `unfunded mortality
                    increase' means an amount equal to the excess of--
                                ``(i) the current liability of the plan for
                            the first plan year for which a plan uses any
                            new mortality table issued under paragraph
                            (7)(C)(ii)(II) or (III), over
                                ``(ii) the current liability of the plan
                            for such plan year which would have been
                            determined if the mortality table in effect for
                            the preceding plan year had been used.''
                                (iii) Conforming amendment.--Clause (i) of
                            section 412(l)(4)(B), as amended by paragraph
                            (4)(B), is amended by inserting ``the
                            unamortized portion of each unfunded mortality
                            increase,'' after ``additional unfunded old
                            liability,''.
                (8) Transition rule.--Section 412(l), as amended by
            paragraph (7), is amended by adding at the end the following
            new paragraph:
                ``(11) Phase-in of increases in funding required by
            retirement protection act of 1994.--
                        ``(A) In general.--For any applicable plan year, at
                    the election of the employer, the increase under
                    paragraph (1) shall not exceed the greater of--
                                ``(i) the increase that would be required
                            under paragraph (1) if the provisions of this
                            title as in effect for plan years beginning
                            before January 1, 1995, had remained in effect,
                            or
                                ``(ii) the amount which, after taking into
                            account charges (other than the additional
                            charge under this subsection) and credits under
                            subsection (b), is necessary to increase the
                            funded current liability percentage (taking
                            into account the expected increase in current
                            liability due to benefits accruing during the
                            plan year) for the applicable plan year to a
                            percentage equal to the sum of the initial
                            funded current liability percentage of the plan
                            plus the applicable number of percentage points
                            for such applicable plan year.
                        ``(B) Applicable number of percentage points.--
                                ``(i) Initial funded current liability
                            percentage of 75 percent or less.--Except as
                            provided in clause (ii), for plans with an
                            initial funded current liability percentage of
                            75 percent or less, the applicable number of
                            percentage points for the applicable plan year
                            is:

                             ``In the case
                                                             The applicable
                                 of applicable
                                                                  number of
                                 plan years
                                                                 percentage
                                 beginning in:
                                                                 points is:
                                   1995..................                 3
                                   1996..................                 6
                                   1997..................                 9
                                   1998..................                12
                                   1999..................                15
                                   2000..................                19
                                   2001..................               24.
                                ``(ii) Other cases.--In the case of a plan
                            to which this clause applies, the applicable
                            number of percentage points for any such
                            applicable plan year is the sum of--
                                        ``(I) 2 percentage points;
                                        ``(II) the applicable number of
                                    percentage points (if any) under this
                                    clause for the preceding applicable
                                    plan year;
                                        ``(III) the product of .10
                                    multiplied by the excess (if any) of
                                    (a) 85 percentage points over (b) the
                                    sum of the initial funded current
                                    liability percentage and the number
                                    determined under subclause (II);
                                        ``(IV) for applicable plan years
                                    beginning in 2000, 1 percentage point;
                                    and
                                        ``(V) for applicable plan years
                                    beginning in 2001, 2 percentage points.
                                ``(iii) Plans to which clause (ii)
                            applies.--
                                        ``(I) In general.--Clause (ii)
                                    shall apply to a plan for an applicable
                                    plan year if the initial funded current
                                    liability percentage of such plan is
                                    more than 75 percent.
                                        ``(II) Plans initially under clause
                                    (i).--In the case of a plan which (but
                                    for this subclause) has an initial
                                    funded current liability percentage of
                                    75 percent or less, clause (ii) (and
                                    not clause (i)) shall apply to such
                                    plan with respect to applicable plan
                                    years beginning after the first
                                    applicable plan year for which the sum
                                    of the initial funded current liability
                                    percentage and the applicable number of
                                    percentage points (determined under
                                    clause (i)) exceeds 75 percent. For
                                    purposes of applying clause (ii) to
                                    such a plan, the initial funded current
                                    liability percentage of such plan shall
                                    be treated as being the sum referred to
                                    in the preceding sentence.
                        ``(C) Definitions.--For purposes of this paragraph:
                                ``(i) The term `applicable plan year' means
                            a plan year beginning after December 31, 1994,
                            and before January 1, 2002.
                                ``(ii) The term `initial funded current
                            liability percentage' means the funded current
                            liability percentage as of the first day of the
                            first plan year beginning after December 31,
                            1994.''
                (9) Liquidity requirement.--
                        (A) In general.--Section 412(m) is amended by
                    redesignating paragraph (5) as paragraph (6) and by
                    inserting after paragraph (4) the following new
                    paragraph:
                ``(5) Liquidity requirement.--
                        ``(A) In general.--A plan to which this paragraph
                    applies shall be treated as failing to pay the full
                    amount of any required installment to the extent that
                    the value of the liquid assets paid in such installment
                    is less than the liquidity shortfall (whether or not
                    such liquidity shortfall exceeds the amount of such
                    installment required to be paid but for this
                    paragraph).
                        ``(B) Plans to which paragraph applies.--This
                    paragraph shall apply to a defined benefit plan (other
                    than a multiemployer plan or a plan described in
                    subsection (l)(6)(A)) which--
                                ``(i) is required to pay installments under
                            this subsection for a plan year, and
                                ``(ii) has a liquidity shortfall for any
                            quarter during such plan year.
                        ``(C) Period of underpayment.--For purposes of
                    paragraph (1), any portion of an installment that is
                    treated as not paid under subparagraph (A) shall
                    continue to be treated as unpaid until the close of the
                    quarter in which the due date for such installment
                    occurs.
                        ``(D) Limitation on increase.--If the amount of any
                    required installment is increased by reason of
                    subparagraph (A), in no event shall such increase
                    exceed the amount which, when added to prior
                    installments for the plan year, is necessary to
                    increase the funded current liability percentage
                    (taking into account the expected increase in current
                    liability due to benefits accruing during the plan
                    year) to 100 percent.
                        ``(E) Definitions.--For purposes of this paragraph:
                                ``(i) Liquidity shortfall.--The term
                            `liquidity shortfall' means, with respect to
                            any required installment, an amount equal to
                            the excess (as of the last day of the quarter
                            for which such installment is made) of the base
                            amount with respect to such quarter over the
                            value (as of such last day) of the plan's
                            liquid assets.
                                ``(ii) Base amount.--
                                        ``(I) In general.--The term `base
                                    amount' means, with respect to any
                                    quarter, an amount equal to 3 times the
                                    sum of the adjusted disbursements from
                                    the plan for the 12 months ending on
                                    the last day of such quarter.
                                        ``(II) Special rule.--If the amount
                                    determined under clause (i) exceeds an
                                    amount equal to 2 times the sum of the
                                    adjusted disbursements from the plan
                                    for the 36 months ending on the last
                                    day of the quarter and an enrolled
                                    actuary certifies to the satisfaction
                                    of the Secretary that such excess is
                                    the result of nonrecurring
                                    circumstances, the base amount with
                                    respect to such quarter shall be
                                    determined without regard to amounts
                                    related to those nonrecurring
                                    circumstances.
                                ``(iii) Disbursements from the plan.--The
                            term `disbursements from the plan' means all
                            disbursements from the trust, including
                            purchases of annuities, payments of single sums
                            and other benefits, and administrative
                            expenses.
                                ``(iv) Adjusted disbursements.--The term
                            `adjusted disbursements' means disbursements
                            from the plan reduced by the product of--
                                        ``(I) the plan's funded current
                                    liability percentage (as defined in
                                    subsection (l)(8)) for the plan year,
                                    and
                                        ``(II) the sum of the purchases of
                                    annuities, payments of single sums, and
                                    such other disbursements as the
                                    Secretary shall provide in regulations.
                                ``(v) Liquid assets.--The term `liquid
                            assets' means cash, marketable securities and
                            such other assets as specified by the Secretary
                            in regulations.
                                ``(vi) Quarter.--The term `quarter' means,
                            with respect to any required installment, the
                            3-month period preceding the month in which the
                            due date for such installment occurs.
                        ``(F) Regulations.--The Secretary may prescribe
                    such regulations as are necessary to carry out this
                    paragraph.''
                        (B) Excise tax on unpaid liquidity shortfall.--
                                (i) Subsection (e) of section 4971 is
                            amended by striking ``(a) or (b)'' wherever it
                            appears and inserting ``(a), (b), or (f)''.
                                (ii) Section 4971 is amended by
                            redesignating subsection (f) as subsection (g)
                            and adding a new subsection (f) to read as
                            follows:
        ``(f) Failure To Pay Liquidity Shortfall.--
                ``(1) In general.--In the case of a plan to which section
            412(m)(5) applies, there is hereby imposed a tax of 10 percent
            of the excess (if any) of--
                        ``(A) the amount of the liquidity shortfall for any
                    quarter, over
                        ``(B) the amount of such shortfall which is paid by
                    the required installment under section 412(m) for such
                    quarter (but only if such installment is paid on or
                    before the due date for such installment).
                ``(2) Additional tax.--If the plan has a liquidity
            shortfall as of the close of any quarter and as of the close of
            each of the following 4 quarters, there is hereby imposed a tax
            equal to 100 percent of the amount on which tax was imposed by
            paragraph (1) for such first quarter.
                ``(3) Definitions and special rule.--
                        ``(A) Liquidity shortfall; quarter.--For purposes
                    of this subsection, the terms `liquidity shortfall' and
                    `quarter' have the respective meanings given such terms
                    by section 412(m)(5).
                        ``(B) Special rule.--If the tax imposed by
                    paragraph (2) is paid with respect to any liquidity
                    shortfall for any quarter, no further tax shall be
                    imposed by this subsection on such shortfall for such
                    quarter.''
                        (C) Treatment of failure to make certain payments
                    if plan has liquidity shortfall.--Section 401(a) is
                    amended by adding at the end the following new
                    paragraph:
                ``(32) Treatment of failure to make certain payments if
            plan has liquidity shortfall.--
                        ``(A) In general.--A trust forming part of a
                    pension plan to which section 412(m)(5) applies shall
                    not be treated as failing to constitute a qualified
                    trust under this section merely because such plan
                    ceases to make any payment described in subparagraph
                    (B) during any period that such plan has a liquidity
                    shortfall (as defined in section 412(m)(5)).
                        ``(B) Payments described.--A payment is described
                    in this subparagraph if such payment is--
                                ``(i) any payment, in excess of the monthly
                            amount paid under a single life annuity (plus
                            any social security supplements described in
                            the last sentence of section 411(a)(9)), to a
                            participant or beneficiary whose annuity
                            starting date (as defined in section 417(f)(2))
                            occurs during the period referred to in
                            subparagraph (A),
                                ``(ii) any payment for the purchase of an
                            irrevocable commitment from an insurer to pay
                            benefits, and
                                ``(iii) any other payment specified by the
                            Secretary by regulations.
                        ``(C) Period of shortfall.--For purposes of this
                    paragraph, a plan has a liquidity shortfall during the
                    period that there is an underpayment of an installment
                    under section 412(m) by reason of paragraph (5)(A)
                    thereof.''
                (10) Amendment to definition of full-funding limitation.--
                        (A) Subparagraph (A) of section 412(c)(7) is
                    amended by inserting ``(including the expected increase
                    in current liability due to benefits accruing during
                    the plan year)'' after ``current liability'' in clause
                    (i).
                        (B) Section 412(c)(7) is amended by adding at the
                    end the following new subparagraph:
                        ``(E) Minimum amount.--
                                ``(i) In general.--In no event shall the
                            full-funding limitation determined under
                            subparagraph (A) be less than the excess (if
                            any) of--
                                        ``(I) 90 percent of the current
                                    liability of the plan (including the
                                    expected increase in current liability
                                    due to benefits accruing during the
                                    plan year), over
                                        ``(II) the value of the plan's
                                    assets determined under paragraph (2).
                                ``(ii) Current liability; assets.--For
                            purposes of clause (i)--
                                        ``(I) the term `current liability'
                                    has the meaning given such term by
                                    subsection (l)(7) (without regard to
                                    subparagraph (D) thereof), and
                                        ``(II) assets shall not be reduced
                                    by any credit balance in the funding
                                    standard account.''
                        (C) Subparagraph (B) of section 412(c)(7) is
                    amended to read as follows:
                        ``(B) Current liability.--For purposes of
                    subparagraph (D) and subclause (I) of subparagraph
                    (A)(i), the term `current liability' has the meaning
                    given such term by subsection (l)(7) (without regard to
                    subparagraphs (C) and (D) thereof) and using the rate
                    of interest used under subsection (b)(5)(B).''
                (11) Reference to act.--Section 404(g)(4) is amended by
            striking ``the Single-Employer Pension Plan Amendments Act of
            1986'' and inserting ``the Retirement Protection Act of 1994''.
        (b) Effective Dates.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall apply to plan years
            beginning after December 31, 1994.
                (2) Reference.--The amendment made by subsection (a)(11)
            shall take effect on the date of the enactment of this Act.

    SEC. 752. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.

        (a) In General.--Paragraph (5) of section 412(c) is amended--
                (1) by striking ``If the funding method'' and inserting the
            following:
                        ``(A) In general.--If the funding method'', and
                (2) by adding at the end the following new subparagraph:
                        ``(B) Approval required for certain changes in
                    assumptions by certain single-employer plans subject to
                    additional funding requirement.--
                                ``(i) In general.--No actuarial assumption
                            (other than the assumptions described in
                            subsection (l)(7)(C)) used to determine the
                            current liability for a plan to which this
                            subparagraph applies may be changed without the
                            approval of the Secretary.
                                ``(ii) Plans to which subparagraph
                            applies.--This subparagraph shall apply to a
                            plan only if--
                                        ``(I) the plan is a defined benefit
                                    plan (other than a multiemployer plan)
                                    to which title IV of the Employee
                                    Retirement Income Security Act of 1974
                                    applies;
                                        ``(II) the aggregate unfunded
                                    vested benefits as of the close of the
                                    preceding plan year (as determined
                                    under section 4006(a)(3)(E)(iii) of the
                                    Employee Retirement Income Security Act
                                    of 1974) of such plan and all other
                                    plans maintained by the contributing
                                    sponsors (as defined in section
                                    4001(a)(13) of such Act) and members of
                                    such sponsors' controlled groups (as
                                    defined in section 4001(a)(14) of such
                                    Act) which are covered by title IV of
                                    such Act (disregarding plans with no
                                    unfunded vested benefits) exceed
                                    $50,000,000; and
                                        ``(III) the change in assumptions
                                    (determined after taking into account
                                    any changes in interest rate and
                                    mortality table) results in a decrease
                                    in the unfunded current liability of
                                    the plan for the current plan year that
                                    exceeds $50,000,000, or that exceeds
                                    $5,000,000 and that is 5 percent or
                                    more of the current liability of the
                                    plan before such change.''
        (b) Effective Date.--
                (1) In general.--The amendment made by this section shall
            apply to changes in assumptions for plan years beginning after
            October 28, 1993.
                (2) Certain changes cease to be effective.--In the case of
            changes in assumptions for plan years beginning after December
            31, 1992, and on or before October 28, 1993, such changes shall
            cease to be effective for plan years beginning after December
            31, 1994, if--
                        (A) such change would have required the approval of
                    the Secretary of the Treasury had such amendment
                    applied to such change, and
                        (B) such change is not so approved.

    SEC. 753. ANTICIPATION OF BARGAINED BENEFIT INCREASES.

        (a) In General.--Section 412(c) is amended by adding at the end the
    following new paragraph:
                ``(12) Anticipation of benefit increases effective in the
            future.--In determining projected benefits, the funding method
            of a collectively bargained plan described in section 413(a)
            (other than a multiemployer plan) shall anticipate benefit
            increases scheduled to take effect during the term of the
            collective bargaining agreement applicable to the plan.''
        (b) Effective Date.--The amendment made by this section shall apply
    to plan years beginning after December 31, 1994, with respect to
    collective bargaining agreements in effect on or after January 1, 1995.

    SEC. 754. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

        (a) In General.--Paragraph (1) of section 412(m) is amended--
                (1) by inserting ``which has a funded current liability
            percentage (as defined in subsection (l)(8)) for the preceding
            plan year of less than 100 percent'' before ``fails'', and
                (2) by striking ``any plan year'' and inserting ``the plan
            year''.
        (b) Effective Date.--The amendment made by this section shall apply
    to plan years beginning after the date of enactment of this Act.

    SEC. 755. EXCEPTIONS TO EXCISE TAX ON NONDEDUCTIBLE CONTRIBUTIONS.

        (a) In General.--Section 4972(c) is amended by adding at the end
    the following new paragraph:
                ``(6) Exceptions.--In determining the amount of
            nondeductible contributions for any taxable year, there shall
            not be taken into account--
                        ``(A) contributions that would be deductible under
                    section 404(a)(1)(D) if the plan had more than 100
                    participants if--
                                ``(i) the plan is covered under section
                            4021 of the Employee Retirement Income Security
                            Act of 1974, and
                                ``(ii) the plan is terminated under section
                            4041(b) of such Act on or before the last day
                            of the taxable year, and
                        ``(B) contributions to 1 or more defined
                    contribution plans which are not deductible when
                    contributed solely because of section 404(a)(7), but
                    only to the extent such contributions do not exceed 6
                    percent of compensation (within the meaning of section
                    404(a)) paid or accrued (during the taxable year for
                    which the contributions were made) to beneficiaries
                    under the plans.
            If 1 or more defined benefit plans were taken into account in
            determining the amount allowable as a deduction under section
            404 for contributions to any defined contribution plan,
            subparagraph (B) shall apply only if such defined benefit plans
            are described in section 404(a)(1)(D). For purposes of
            subparagraph (B), the deductible limits under section 404(a)(7)
            shall first be applied to amounts contributed to a defined
            benefit plan and then to amounts described in subparagraph
            (B).''
        (b) Effective Date.--
                (1) Section 4972(c)(6)(a).--Section 4972(c)(6)(A) of the
            Internal Revenue Code of 1986 (as added by this section) shall
            apply to taxable years ending on or after the date of enactment
            of this Act.
                (2) Section 4972(c)(6)(b).--Section 4972(c)(6)(B) of such
            Code (as added by this section) shall apply to taxable years
            ending on or after December 31, 1992.

    Subpart B--Amendments to the Employee Retirement Income Security Act of
                                      1974

    SEC. 761. MINIMUM FUNDING REQUIREMENTS.

        (a) Amendments to Additional Funding Requirements for Single-
    Employer Plans.--
                (1) Limitations on additional funding requirement for
            certain plans.--
                        (A) In general.--Paragraph (1) of section 302(d) of
                    the Employee Retirement Income Security Act of 1974 (29
                    U.S.C. 1082(d)) is amended by striking ``which has an
                    unfunded current liability'' and inserting ``to which
                    this subsection applies under paragraph (9)''.
                        (B) Plans to which requirement applies.--Section
                    302(d) of such Act is amended by adding at the end the
                    following new paragraph:
                ``(9) Applicability of subsection.--
                        ``(A) In general.--Except as provided in paragraph
                    (6)(A), this subsection shall apply to a plan for any
                    plan year if its funded current liability percentage
                    for such year is less than 90 percent.
                        ``(B) Exception for certain plans at least 80
                    percent funded.--Subparagraph (A) shall not apply to a
                    plan for a plan year if--
                                ``(i) the funded current liability
                            percentage for the plan year is at least 80
                            percent, and
                                ``(ii) such percentage for each of the 2
                            immediately preceding plan years (or each of
                            the 2d and 3d immediately preceding plan years)
                            is at least 90 percent.
                        ``(C) Funded current liability percentage.--For
                    purposes of subparagraphs (A) and (B), the term `funded
                    current liability percentage' has the meaning given
                    such term by paragraph (8)(B), except that such
                    percentage shall be determined for any plan year--
                                ``(i) without regard to paragraph (8)(E),
                            and
                                ``(ii) by using the rate of interest which
                            is the highest rate allowable for the plan year
                            under paragraph (7)(C).
                        ``(D) Transition rules.--For purposes of this
                    paragraph:
                                ``(i) Funded percentage for years before
                            1995.--The funded current liability percentage
                            for any plan year beginning before January 1,
                            1995, shall be treated as not less than 90
                            percent only if for such plan year the plan met
                            one of the following requirements (as in effect
                            for such year):
                                        ``(I) The full-funding limitation
                                    under subsection (c)(7) for the plan
                                    was zero.
                                        ``(II) The plan had no additional
                                    funding requirement under this
                                    subsection (or would have had no such
                                    requirement if its funded current
                                    liability percentage had been
                                    determined under subparagraph (C)).
                                        ``(III) The plan's additional
                                    funding requirement under this
                                    subsection did not exceed the lesser of
                                    0.5 percent of current liability or
                                    $5,000,000.
                                ``(ii) Special rule for 1995 and 1996.--For
                            purposes of determining whether subparagraph
                            (B) applies to any plan year beginning in 1995
                            or 1996, a plan shall be treated as meeting the
                            requirements of subparagraph (B)(ii) if the
                            plan met the requirements of clause (i) of this
                            subparagraph for any two of the plan years
                            beginning in 1992, 1993, and 1994 (whether or
                            not consecutive).''
                (2) Relationship of additional funding requirement to
            funding standard account charges and credits.--
                        (A) Clause (ii) of section 302(d)(1)(A) of such Act
                    is amended to read as follows:
                                ``(ii) the sum of the charges for such plan
                            year under subsection (b)(2), reduced by the
                            sum of the credits for such plan year under
                            subparagraph (B) of subsection (b)(3), plus''.
                        (B) The last sentence in section 302(d)(1) of such
                    Act is amended to read as follows:
            ``Such increase shall not exceed the amount which, after taking
            into account charges (other than the additional charge under
            this subsection) and credits under subsection (b), is necessary
            to increase the funded current liability percentage (taking
            into account the expected increase in current liability due to
            benefits accruing during the plan year) to 100 percent.''
                (3) Amendment to deficit reduction contribution.--Paragraph
            (2) of section 302(d) of such Act is amended--
                        (A) by striking ``plus'' at the end of subparagraph
                    (A);
                        (B) by striking the period at the end of
                    subparagraph (B) and inserting ``, plus''; and
                        (C) by adding at the end the following new
                    subparagraph:
                        ``(C) the expected increase in current liability
                    due to benefits accruing during the plan year.''
                (4) Increase in current liability due to change in required
            assumptions.--
                        (A) Paragraph (3) of section 302(d) of such Act is
                    amended by adding at the end the following new
                    subparagraphs:
                        ``(D) Special rule for required changes in
                    actuarial assumptions.--
                                ``(i) In general.--The unfunded old
                            liability amount with respect to any plan for
                            any plan year shall be increased by the amount
                            necessary to amortize the amount of additional
                            unfunded old liability under the plan in equal
                            annual installments over a period of 12 plan
                            years (beginning with the first plan year
                            beginning after December 31, 1994).
                                ``(ii) Additional unfunded old liability.--
                            For purposes of clause (i), the term
                            `additional unfunded old liability' means the
                            amount (if any) by which--
                                        ``(I) the current liability of the
                                    plan as of the beginning of the first
                                    plan year beginning after December 31,
                                    1994, valued using the assumptions
                                    required by paragraph (7)(C) as in
                                    effect for plan years beginning after
                                    December 31, 1994, exceeds
                                        ``(II) the current liability of the
                                    plan as of the beginning of such first
                                    plan year, valued using the same
                                    assumptions used under subclause (I)
                                    (other than the assumptions required by
                                    paragraph (7)(C)), using the prior
                                    interest rate, and using such mortality
                                    assumptions as were used to determine
                                    current liability for the first plan
                                    year beginning after December 31, 1992.
                                ``(iii) Prior interest rate.--For purposes
                            of clause (ii), the term `prior interest rate'
                            means the rate of interest that is the same
                            percentage of the weighted average under
                            subsection (b)(5)(B)(ii)(I) for the first plan
                            year beginning after December 31, 1994, as the
                            rate of interest used by the plan to determine
                            current liability for the first plan year
                            beginning after December 31, 1992, is of the
                            weighted average under subsection
                            (b)(5)(B)(ii)(I) for such first plan year
                            beginning after December 31, 1992.
                        ``(E) Optional rule for additional unfunded old
                    liability.--
                                ``(i) In general.--If an employer makes an
                            election under clause (ii), the additional
                            unfunded old liability for purposes of
                            subparagraph (D) shall be the amount (if any)
                            by which--
                                        ``(I) the unfunded current
                                    liability of the plan as of the
                                    beginning of the first plan year
                                    beginning after December 31, 1994,
                                    valued using the assumptions required
                                    by paragraph (7)(C) as in effect for
                                    plan years beginning after December 31,
                                    1994, exceeds
                                        ``(II) the unamortized portion of
                                    the unfunded old liability under the
                                    plan as of the beginning of the first
                                    plan year beginning after December 31,
                                    1994.
                                ``(ii) Election.--
                                        ``(I) An employer may irrevocably
                                    elect to apply the provisions of this
                                    subparagraph as of the beginning of the
                                    first plan year beginning after
                                    December 31, 1994.
                                        ``(II) If an election is made under
                                    this clause, the increase under
                                    paragraph (1) for any plan year
                                    beginning after December 31, 1994, and
                                    before January 1, 2002, to which this
                                    subsection applies (without regard to
                                    this subclause) shall not be less than
                                    the increase that would be required
                                    under paragraph (1) if the provisions
                                    of this title as in effect for the last
                                    plan year beginning before January 1,
                                    1995, had remained in effect.''
                        (B) Clause (i) of section 302(d)(4)(B) of such Act
                    is amended by inserting ``, the unamortized portion of
                    the additional unfunded old liability,'' after ``old
                    liability''.
                (5) Applicable percentage for determining unfunded new
            liability amount.--Subparagraph (C) of section 302(d)(4) of
            such Act is amended--
                        (A) by striking ``.25'' and inserting ``.40'', and
                        (B) by striking ``35'' and inserting ``60''.
                (6) Unpredictable contingent event amount.--
                        (A) Subparagraph (A) of section 302(d)(5) of such
                    Act is amended--
                                (i) by striking ``greater of'' and
                            inserting ``greatest of'' before clause (i);
                                (ii) by striking ``or'' at the end of
                            clause (i);
                                (iii) by striking the period at the end of
                            clause (ii) and inserting ``, or''; and
                                (iv) by adding after clause (ii) the
                            following new clause:
                                ``(iii) the additional amount that would be
                            determined under paragraph (4)(A) if the
                            unpredictable contingent event benefit
                            liabilities were included in unfunded new
                            liability notwithstanding paragraph
                            (4)(B)(ii).''
                        (B) Paragraph (5) of section 302(d) of such Act is
                    amended by adding at the end the following new
                    subparagraph:
                        ``(E) Limitation.--The present value of the amounts
                    described in subparagraph (A) with respect to any one
                    event shall not exceed the unpredictable contingent
                    event benefit liabilities attributable to that event.''
                        (C) Clause (ii) of section 302(e)(4)(D) of such Act
                    is amended--
                                (i) by striking ``greater of'' and
                            inserting ``greatest of'' before subclause (I);
                                (ii) by striking ``or'' at the end of
                            subclause (I);
                                (iii) by striking the period at the end of
                            subclause (II) and inserting ``, or''; and
                                (iv) by adding after subclause (II) the
                            following new clause:
                                        ``(III) 25 percent of the amount
                                    determined under subsection
                                    (d)(5)(A)(iii) for the plan year.''
                (7) Required interest rate and mortality assumptions for
            determining current liability.--
                        (A) In general.--Subparagraph (C) of section
                    302(d)(7) of such Act is amended to read as follows:
                        ``(C) Interest rate and mortality assumptions
                    used.--Effective for plan years beginning after
                    December 31, 1994--
                                ``(i) Interest rate.--
                                        ``(I) In general.--The rate of
                                    interest used to determine current
                                    liability under this subsection shall
                                    be the rate of interest used under
                                    subsection (b)(5), except that the
                                    highest rate in the permissible range
                                    under subparagraph (B)(ii) thereof
                                    shall not exceed the specified
                                    percentage under subclause (II) of the
                                    weighted average referred to in such
                                    subparagraph.
                                        ``(II) Specified percentage.--For
                                    purposes of subclause (I), the
                                    specified percentage shall be
                                    determined as follows:

                             ``In the case of
                               plan years beginning
                                                              The specified
                               in calendar year:
                                                             percentage is:
                                     1995................               109
                                     1996................               108
                                     1997................               107
                                     1998................               106
                                     1999 and thereafter.              105.
                                ``(ii) Mortality tables.--
                                        ``(I) Commissioners' standard
                                    table.--In the case of plan years
                                    beginning before the first plan year to
                                    which the first tables prescribed under
                                    subclause (II) apply, the mortality
                                    table used in determining current
                                    liability under this subsection shall
                                    be the table prescribed by the
                                    Secretary of the Treasury which is
                                    based on the prevailing commissioners'
                                    standard table (described in section
                                    807(d)(5)(A) of the Internal Revenue
                                    Code of 1986) used to determine
                                    reserves for group annuity contracts
                                    issued on January 1, 1993.
                                        ``(II) Secretarial authority.--The
                                    Secretary of the Treasury may by
                                    regulation prescribe for plan years
                                    beginning after December 31, 1999,
                                    mortality tables to be used in
                                    determining current liability under
                                    this subsection. Such tables shall be
                                    based upon the actual experience of
                                    pension plans and projected trends in
                                    such experience. In prescribing such
                                    tables, the Secretary of the Treasury
                                    shall take into account results of
                                    available independent studies of
                                    mortality of individuals covered by
                                    pension plans.
                                        ``(III) Periodic review.--The
                                    Secretary of the Treasury shall
                                    periodically (at least every 5 years)
                                    review any tables in effect under this
                                    subsection and shall, to the extent the
                                    Secretary determines necessary, by
                                    regulation update the tables to reflect
                                    the actual experience of pension plans
                                    and projected trends in such
                                    experience.
                                ``(iii) Separate mortality tables for the
                            disabled.--Notwithstanding clause (ii)--
                                        ``(I) In general.--In the case of
                                    plan years beginning after December 31,
                                    1995, the Secretary of the Treasury
                                    shall establish mortality tables which
                                    may be used (in lieu of the tables
                                    under clause (ii)) to determine current
                                    liability under this subsection for
                                    individuals who are entitled to
                                    benefits under the plan on account of
                                    disability. Such Secretary shall
                                    establish separate tables for
                                    individuals whose disabilities occur in
                                    plan years beginning before January 1,
                                    1995, and for individuals whose
                                    disabilities occur in plan years
                                    beginning on or after such date.
                                        ``(II) Special rule for
                                    disabilities occurring after 1994.--In
                                    the case of disabilities occurring in
                                    plan years beginning after December 31,
                                    1994, the tables under subclause (I)
                                    shall apply only with respect to
                                    individuals described in such subclause
                                    who are disabled within the meaning of
                                    title II of the Social Security Act and
                                    the regulations thereunder.
                                        ``(III) Plan years beginning in
                                    1995.--In the case of any plan year
                                    beginning in 1995, a plan may use its
                                    own mortality assumptions for
                                    individuals who are entitled to
                                    benefits under the plan on account of
                                    disability.''
                        (B) Amortization of unfunded mortality increase
                    amount.--
                                (i) In general.--Paragraph (2) of section
                            302(d) of such Act, as amended by paragraph
                            (3), is amended by striking ``plus'' at the end
                            of subparagraph (B), by striking the period at
                            the end of subparagraph (C) and inserting ``,
                            and'', and by adding at the end the following
                            new subparagraph:
                        ``(D) the aggregate of the unfunded mortality
                    increase amounts.''
                                (ii) Unfunded mortality increase amount.--
                            Section 302(d) of such Act, as amended by
                            paragraph (1), is amended by adding at the end
                            the following new paragraph:
                ``(10) Unfunded mortality increase amount.--
                        ``(A) In general.--The unfunded mortality increase
                    amount with respect to each unfunded mortality increase
                    is the amount necessary to amortize such increase in
                    equal annual installments over a period of 10 plan
                    years (beginning with the first plan year for which a
                    plan uses any new mortality table issued under
                    paragraph (7)(C)(ii)(II) or (III)).
                        ``(B) Unfunded mortality increase.--For purposes of
                    subparagraph (A), the term `unfunded mortality
                    increase' means an amount equal to the excess of--
                                ``(i) the current liability of the plan for
                            the first plan year for which a plan uses any
                            new mortality table issued under paragraph
                            (7)(C)(ii)(II) or (III), over
                                ``(ii) the current liability of the plan
                            for such plan year which would have been
                            determined if the mortality table in effect for
                            the preceding plan year had been used.''
                                (iii) Conforming amendment.--Clause (i) of
                            section 302(d)(4)(B) of such Act, as amended by
                            paragraph (4)(B), is amended by inserting ``the
                            unamortized portion of each unfunded mortality
                            increase,'' after ``additional unfunded old
                            liability,''.
                (8) Transition rule.--Section 302(d) of such Act, as
            amended by paragraph (7), is amended by adding at the end the
            following new paragraph:
                ``(11) Phase-in of increases in funding required by
            retirement protection act of 1994.--
                        ``(A) In general.--For any applicable plan year, at
                    the election of the employer, the increase under
                    paragraph (1) shall not exceed the greater of--
                                ``(i) the increase that would be required
                            under paragraph (1) if the provisions of this
                            title as in effect for plan years beginning
                            before January 1, 1995, had remained in effect,
                            or
                                ``(ii) the amount which, after taking into
                            account charges (other than the additional
                            charge under this subsection) and credits under
                            subsection (b), is necessary to increase the
                            funded current liability percentage (taking
                            into account the expected increase in current
                            liability due to benefits accruing during the
                            plan year) for the applicable plan year to a
                            percentage equal to the sum of the initial
                            funded current liability percentage of the plan
                            plus the applicable number of percentage points
                            for such applicable plan year.
                        ``(B) Applicable number of percentage points.--
                                ``(i) Initial funded current liability
                            percentage of 75 percent or less.--Except as
                            provided in clause (ii), for plans with an
                            initial funded current liability percentage of
                            75 percent or less, the applicable number of
                            percentage points for the applicable plan year
                            is:

                             ``In the case
                                                             The applicable
                                 of applicable
                                                                  number of
                                 plan years
                                                                 percentage
                                 beginning in:
                                                                 points is:
                                   1995..................                 3
                                   1996..................                 6
                                   1997..................                 9
                                   1998..................                12
                                   1999..................                15
                                   2000..................                19
                                   2001..................               24.
                                ``(ii) Other cases.--In the case of a plan
                            to which this clause applies, the applicable
                            number of percentage points for any such
                            applicable plan year is the sum of--
                                        ``(I) 2 percentage points;
                                        ``(II) the applicable number of
                                    percentage points (if any) under this
                                    clause for the preceding applicable
                                    plan year;
                                        ``(III) the product of .10
                                    multiplied by the excess (if any) of
                                    (a) 85 percentage points over (b) the
                                    sum of the initial funded current
                                    liability percentage and the number
                                    determined under subclause (II);
                                        ``(IV) for applicable plan years
                                    beginning in 2000, 1 percentage point;
                                    and
                                        ``(V) for applicable plan years
                                    beginning in 2001, 2 percentage points.
                                ``(iii) Plans to which clause (ii)
                            applies.--
                                        ``(I) In general.--Clause (ii)
                                    shall apply to a plan for an applicable
                                    plan year if the initial funded current
                                    liability percentage of such plan is
                                    more than 75 percent.
                                        ``(II) Plans initially under clause
                                    (i).--In the case of a plan which (but
                                    for this subclause) has an initial
                                    funded current liability percentage of
                                    75 percent or less, clause (ii) (and
                                    not clause (i)) shall apply to such
                                    plan with respect to applicable plan
                                    years beginning after the first
                                    applicable plan year for which the sum
                                    of the initial funded current liability
                                    percentage and the applicable number of
                                    percentage points (determined under
                                    clause (i)) exceeds 75 percent. For
                                    purposes of applying clause (ii) to
                                    such a plan, the initial funded current
                                    liability percentage of such plan shall
                                    be treated as being the sum referred to
                                    in the preceding sentence.
                        ``(C) Definitions.--For purposes of this
                    paragraph--
                                ``(i) The term `applicable plan year' means
                            a plan year beginning after December 31, 1994,
                            and before January 1, 2002.
                                ``(ii) The term `initial funded current
                            liability percentage' means the funded current
                            liability percentage as of the first day of the
                            first plan year beginning after December 31,
                            1994.''
                (9) Liquidity requirement.--
                        (A) In general.--Section 302(e) of such Act is
                    amended by redesignating paragraph (5) as paragraph (6)
                    and by inserting after paragraph (4) the following new
                    paragraph:
                ``(5) Liquidity requirement.--
                        ``(A) In general.--A plan to which this paragraph
                    applies shall be treated as failing to pay the full
                    amount of any required installment to the extent that
                    the value of the liquid assets paid in such installment
                    is less than the liquidity shortfall (whether or not
                    such liquidity shortfall exceeds the amount of such
                    installment required to be paid but for this
                    paragraph).
                        ``(B) Plans to which paragraph applies.--This
                    paragraph shall apply to a defined benefit plan (other
                    than a multiemployer plan or a plan described in
                    subsection (d)(6)(A)) which--
                                ``(i) is required to pay installments under
                            this subsection for a plan year, and
                                ``(ii) has a liquidity shortfall for any
                            quarter during such plan year.
                        ``(C) Period of underpayment.--For purposes of
                    paragraph (1), any portion of an installment that is
                    treated as not paid under subparagraph (A) shall
                    continue to be treated as unpaid until the close of the
                    quarter in which the due date for such installment
                    occurs.
                        ``(D) Limitation on increase.--If the amount of any
                    required installment is increased by reason of
                    subparagraph (A), in no event shall such increase
                    exceed the amount which, when added to prior
                    installments for the plan year, is necessary to
                    increase the funded current liability percentage
                    (taking into account the expected increase in current
                    liability due to benefits accruing during the plan
                    year) to 100 percent.
                        ``(E) Definitions.--For purposes of this
                    paragraph--
                                ``(i) Liquidity shortfall.--The term
                            `liquidity shortfall' means, with respect to
                            any required installment, an amount equal to
                            the excess (as of the last day of the quarter
                            for which such installment is made) of the base
                            amount with respect to such quarter over the
                            value (as of such last day) of the plan's
                            liquid assets.
                                ``(ii) Base amount.--
                                        ``(I) In general.--The term `base
                                    amount' means, with respect to any
                                    quarter, an amount equal to 3 times the
                                    sum of the adjusted disbursements from
                                    the plan for the 12 months ending on
                                    the last day of such quarter.
                                        ``(II) Special rule.--If the amount
                                    determined under clause (i) exceeds an
                                    amount equal to 2 times the sum of the
                                    adjusted disbursements from the plan
                                    for the 36 months ending on the last
                                    day of the quarter and an enrolled
                                    actuary certifies to the satisfaction
                                    of the Secretary of the Treasury that
                                    such excess is the result of
                                    nonrecurring circumstances, the base
                                    amount with respect to such quarter
                                    shall be determined without regard to
                                    amounts related to those nonrecurring
                                    circumstances.
                                ``(iii) Disbursements from the plan.--The
                            term `disbursements from the plan' means all
                            disbursements from the trust, including
                            purchases of annuities, payments of single sums
                            and other benefits, and administrative
                            expenses.
                                ``(iv) Adjusted disbursements.--The term
                            `adjusted disbursements' means disbursements
                            from the plan reduced by the product of--
                                        ``(I) the plan's funded current
                                    liability percentage (as defined in
                                    subsection (d)(8)) for the plan year,
                                    and
                                        ``(II) the sum of the purchases of
                                    annuities, payments of single sums, and
                                    such other disbursements as the
                                    Secretary of the Treasury shall provide
                                    in regulations.
                                ``(v) Liquid assets.--The term `liquid
                            assets' means cash, marketable securities and
                            such other assets as specified by the Secretary
                            of the Treasury in regulations.
                                ``(vi) Quarter.--The term `quarter' means,
                            with respect to any required installment, the
                            3-month period preceding the month in which the
                            due date for such installment occurs.
                        ``(F) Regulations.--The Secretary of the Treasury
                    may prescribe such regulations as are necessary to
                    carry out this paragraph.''
                        (B) Limitation on distributions other than life
                    annuities paid by the plan.--
                                (i) Section 206 of the Employee Retirement
                            Income Security Act of 1974 (29 U.S.C. 1056) is
                            amended by adding at the end the following new
                            subsection:
        ``(e) Limitation on Distributions Other Than Life Annuities Paid By
    The Plan.--
                ``(1) In general.--Notwithstanding any other provision of
            this part, the fiduciary of a pension plan that is subject to
            the additional funding requirements of section 302(d) shall not
            permit a prohibited payment to be made from a plan during a
            period in which such plan has a liquidity shortfall (as defined
            in section 302(e)(5)).
                ``(2) Prohibited payment.--For purposes of paragraph (1),
            the term `prohibited payment' means--
                        ``(A) any payment, in excess of the monthly amount
                    paid under a single life annuity (plus any social
                    security supplements described in the last sentence of
                    section 204(b)(1)(G)), to a participant or beneficiary
                    whose annuity starting date (as defined in section
                    205(h)(2)), that occurs during the period referred to
                    in paragraph (1),
                        ``(B) any payment for the purchase of an
                    irrevocable commitment from an insurer to pay benefits,
                    and
                        ``(C) any other payment specified by the Secretary
                    of the Treasury by regulations.
                ``(3) Period of shortfall.--For purposes of this
            subsection, a plan has a liquidity shortfall during the period
            that there is an underpayment of an installment under section
            302(e) by reason of paragraph (5)(A) thereof.
                ``(4) Coordination with other provisions.--Compliance with
            this subsection shall not constitute a violation of any other
            provision of this Act.''
                                (ii) Section 502 of such Act is amended by
                            adding at the end a new subsection (m) to read
                            as follows:
        ``(m) In the case of a distribution to a pension plan participant
    or beneficiary in violation of section 206(e) by a plan fiduciary, the
    Secretary shall assess a penalty against such fiduciary in an amount
    equal to the value of the distribution. Such penalty shall not exceed
    $10,000 for each such distribution.''
                (10) Amendment to definition of full-funding limitation.--
                        (A) Subparagraph (A) of section 302(c)(7) of such
                    Act is amended by inserting ``(including the expected
                    increase in current liability due to benefits accruing
                    during the plan year)'' after ``current liability'' in
                    clause (i).
                        (B) Section 302(c)(7) of such Act is amended by
                    adding at the end the following new subparagraph:
                        ``(E) Minimum amount.--
                                ``(i) In general.--In no event shall the
                            full-funding limitation determined under
                            subparagraph (A) be less than the excess (if
                            any) of--
                                        ``(I) 90 percent of the current
                                    liability of the plan (including the
                                    expected increase in current liability
                                    due to benefits accruing during the
                                    plan year), over
                                        ``(II) the value of the plan's
                                    assets determined under paragraph (2).
                                ``(ii) Current liability; assets.--For
                            purposes of clause (i)--
                                        ``(I) the term `current liability'
                                    has the meaning given such term by
                                    subsection (d)(7) (without regard to
                                    subparagraph (D) thereof), and
                                        ``(II) assets shall not be reduced
                                    by any credit balance in the funding
                                    standard account.''
                        (C) Subparagraph (B) of section 302(c)(7) of such
                    Act is amended to read as follows:
                        ``(B) Current liability.--For purposes of
                    subparagraph (D) and subclause (I) of subparagraph
                    (A)(i), the term `current liability' has the meaning
                    given such term by subsection (d)(7) (without regard to
                    subparagraphs (C) and (D) thereof) and using the rate
                    of interest used under subsection (b)(5)(B).''
                (11) Definition of contributing sponsor.--Paragraph (13) of
            section 4001(a) of such Act (29 U.S.C. 1301(a)(13)) is amended
            by striking ``means a person--'' and all that follows and
            inserting ``means a person described in section 302(c)(11)(A)
            of this Act (without regard to section 302(c)(11)(B) of this
            Act) or section 412(c)(11)(A) of the Internal Revenue Code of
            1986 (without regard to section 412(c)(11)(B) of such Code).''
        (b) Effective Dates.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall apply to plan years
            beginning after December 31, 1994.
                (2) Contributing sponsor.--The amendment made by subsection
            (a)(11) shall be effective as if included in the Pension
            Protection Act.

    SEC. 762. LIMITATION ON CHANGES IN CURRENT LIABILITY ASSUMPTIONS.

        (a) In General.--Paragraph (5) of section 302(c) of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(5)) is
    amended--
                (1) by striking ``If the funding method'' and inserting the
            following:
                        ``(A) In general.--If the funding method'', and
                (2) by adding at the end the following new subparagraph:
                        ``(B) Approval required for certain changes in
                    assumptions by certain single-employer plans subject to
                    additional funding requirement.--
                                ``(i) In general.--No actuarial assumption
                            (other than the assumptions described in
                            subsection (d)(7)(C)) used to determine the
                            current liability for a plan to which this
                            subparagraph applies may be changed without the
                            approval of the Secretary of the Treasury.
                                ``(ii) Plans to which subparagraph
                            applies.--This subparagraph shall apply to a
                            plan only if--
                                        ``(I) the plan is a defined benefit
                                    plan (other than a multiemployer plan)
                                    to which title IV applies;
                                        ``(II) the aggregate unfunded
                                    vested benefits as of the close of the
                                    preceding plan year (as determined
                                    under section 4006(a)(3)(E)(iii)) of
                                    such plan and all other plans
                                    maintained by the contributing sponsors
                                    (as defined in section 4001(a)(13)) and
                                    members of such sponsors' controlled
                                    groups (as defined in section
                                    4001(a)(14)) which are covered by title
                                    IV (disregarding plans with no unfunded
                                    vested benefits) exceed $50,000,000;
                                    and
                                        ``(III) the change in assumptions
                                    (determined after taking into account
                                    any changes in interest rate and
                                    mortality table) results in a decrease
                                    in the unfunded current liability of
                                    the plan for the current plan year that
                                    exceeds $50,000,000, or that exceeds
                                    $5,000,000 and that is 5 percent or
                                    more of the current liability of the
                                    plan before such change.''
        (b) Effective Date.--
                (1) In general.--The amendment made by this section shall
            apply to changes in assumptions for plan years beginning after
            October 28, 1993.
                (2) Certain changes cease to be effective.--In the case of
            changes in assumptions for plan years beginning after December
            31, 1992, and on or before October 28, 1993, such changes shall
            cease to be effective for plan years beginning after December
            31, 1994, if--
                        (A) such change would have required the approval of
                    the Secretary of the Treasury had such amendment
                    applied to such change, and
                        (B) such change is not so approved.

    SEC. 763. ANTICIPATION OF BARGAINED BENEFIT INCREASES.

        (a) In General.--Section 302(c) of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C. 1082(c)) is amended by adding at the
    end the following new paragraph:
                ``(12) Anticipation of benefit increases effective in the
            future.--In determining projected benefits, the funding method
            of a collectively bargained plan described in section 413(a) of
            the Internal Revenue Code of 1986 (other than a multiemployer
            plan) shall anticipate benefit increases scheduled to take
            effect during the term of the collective bargaining agreement
            applicable to the plan.''
        (b) Effective Date.--The amendment made by this section shall apply
    to plan years beginning after December 31, 1994 with respect to
    collective bargaining agreements in effect on or after January 1, 1995.

    SEC. 764. MODIFICATION OF QUARTERLY CONTRIBUTION REQUIREMENT.

        (a) In General.--Paragraph (1) of section 302(e) of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1082(e)) is amended--
                (1) by inserting ``which has a funded current liability
            percentage (as defined in subsection (d)(8)) for the preceding
            plan year of less than 100 percent'' before ``fails'', and
                (2) by striking ``any plan year'' and inserting ``the plan
            year''.
        (b) Effective Date.--The amendment made by this section shall apply
    to plan years beginning after the date of enactment of this Act.

                      Subpart C--Other Funding Provisions

    SEC. 766. PROHIBITION ON BENEFIT INCREASES WHERE PLAN SPONSOR IS IN
                  BANKRUPTCY.

        (a) Amendment to the Employee Retirement Income Security Act of
    1974.--Section 204 of the Employee Retirement Income Security Act of
    1974 (29 U.S.C. 1054) is amended by redesignating subsection (i) as (j)
    and inserting after subsection (h) the following new subsection:
        ``(i)(1) In the case of a plan described in paragraph (3) which is
    maintained by an employer that is a debtor in a case under title 11,
    United States Code, or similar Federal or State law, no amendment of
    the plan which increases the liabilities of the plan by reason of--
                ``(A) any increase in benefits,
                ``(B) any change in the accrual of benefits, or
                ``(C) any change in the rate at which benefits become
            nonforfeitable under the plan,
    with respect to employees of the debtor, shall be effective prior to
    the effective date of such employer's plan of reorganization.
        ``(2) Paragraph (1) shall not apply to any plan amendment that--
                ``(A) the Secretary of the Treasury determines to be
            reasonable and that provides for only de minimis increases in
            the liabilities of the plan with respect to employees of the
            debtor,
                ``(B) only repeals an amendment described in section
            302(c)(8),
                ``(C) is required as a condition of qualification under
            part I of subchapter D of chapter 1 of the Internal Revenue
            Code of 1986, or
                ``(D) was adopted prior to, or pursuant to a collective
            bargaining agreement entered into prior to, the date on which
            the employer became a debtor in a case under title 11, United
            States Code, or similar Federal or State law.
        ``(3) This subsection shall apply only to plans (other than
    multiemployer plans) covered under section 4021 of this Act for which
    the funded current liability percentage (within the meaning of section
    302(d)(8) of this Act) is less than 100 percent after taking into
    account the effect of the amendment.
        ``(4) For purposes of this subsection, the term `employer' has the
    meaning set forth in section 302(c)(11)(A), without regard to section
    302(c)(11)(B).''
        (b) Amendment to Internal Revenue Code of 1986.--Section 401(a), as
    amended by section 751 of this Act, is further amended by adding at the
    end the following new paragraph:
                ``(33) Prohibition on benefit increases while sponsor is in
            bankruptcy.--
                        ``(A) In general.--A trust which is part of a plan
                    to which this paragraph applies shall not constitute a
                    qualified trust under this section if an amendment to
                    such plan is adopted while the employer is a debtor in
                    a case under title 11, United States Code, or similar
                    Federal or State law, if such amendment increases
                    liabilities of the plan by reason of--
                                ``(i) any increase in benefits,
                                ``(ii) any change in the accrual of
                            benefits, or
                                ``(iii) any change in the rate at which
                            benefits become nonforfeitable under the plan,
                    with respect to employees of the debtor, and such
                    amendment is effective prior to the effective date of
                    such employer's plan of reorganization.
                        ``(B) Exceptions.--This paragraph shall not apply
                    to any plan amendment if--
                                ``(i) the plan, were such amendment to take
                            effect, would have a funded current liability
                            percentage (as defined in section 412(l)(8)) of
                            100 percent or more,
                                ``(ii) the Secretary determines that such
                            amendment is reasonable and provides for only
                            de minimis increases in the liabilities of the
                            plan with respect to employees of the debtor,
                                ``(iii) such amendment only repeals an
                            amendment described in subsection 412(c)(8), or
                                ``(iv) such amendment is required as a
                            condition of qualification under this part.
                        ``(C) Plans to which this paragraph applies.--This
                    paragraph shall apply only to plans (other than
                    multiemployer plans) covered under section 4021 of the
                    Employee Retirement Income Security Act of 1974.
                        ``(D) Employer.--For purposes of this paragraph,
                    the term `employer' means the employer referred to in
                    section 412(c)(11) (without regard to subparagraph (B)
                    thereof).''
        (c) Effective Date of Plan Amendment.--Section 4022 of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1322) is amended by
    inserting at the end the following new subsection:
        ``(f) For purposes of this section, the effective date of a plan
    amendment described in section 204(i)(1) shall be the effective date of
    the plan of reorganization of the employer described in section
    204(i)(1) or, if later, the effective date stated in such amendment.''
        (d) Effective Date.--The amendments made by this section shall
    apply to plan amendments adopted on or after the date of enactment of
    this Act.

    SEC. 767. SINGLE SUM DISTRIBUTIONS.

        (a) Amendments to Internal Revenue Code of 1986 Relating to Minimum
    Benefits.--
                (1) Determination of present value for purposes of
            restrictions on mandatory distributions.--Subparagraph (B) of
            section 411(a)(11) is amended to read as follows:
                        ``(B) Determination of present value.--For purposes
                    of subparagraph (A), the present value shall be
                    calculated in accordance with section 417(e)(3).''
                (2) Determination of present value for purposes of
            restrictions on cash-outs.--Paragraph (3) of section 417(e) is
            amended to read as follows:
                ``(3) Determination of present value.--
                        ``(A) In general.--
                                ``(i) Present value.--Except as provided in
                            subparagraph (B), for purposes of paragraphs
                            (1) and (2), the present value shall not be
                            less than the present value calculated by using
                            the applicable mortality table and the
                            applicable interest rate.
                                ``(ii) Definitions.--For purposes of clause
                            (i)--
                                        ``(I) Applicable mortality table.--
                                    The term `applicable mortality table'
                                    means the table prescribed by the
                                    Secretary. Such table shall be based on
                                    the prevailing commissioners' standard
                                    table (described in section
                                    807(d)(5)(A)) used to determine
                                    reserves for group annuity contracts
                                    issued on the date as of which present
                                    value is being determined (without
                                    regard to any other subparagraph of
                                    section 807(d)(5)).
                                        ``(II) Applicable interest rate.--
                                    The term `applicable interest rate'
                                    means the annual rate of interest on
                                    30-year Treasury securities for the
                                    month before the date of distribution
                                    or such other time as the Secretary may
                                    by regulations prescribe.
                        ``(B) Exception.--In the case of a distribution
                    from a plan that was adopted and in effect before the
                    date of the enactment of the Retirement Protection Act
                    of 1994, the present value of any distribution made
                    before the earlier of--
                                ``(i) the later of the date a plan
                            amendment applying subparagraph (A) is adopted
                            or made effective, or
                                ``(ii) the first day of the first plan year
                            beginning after December 31, 1999,
                    shall be calculated, for purposes of paragraphs (1) and
                    (2), using the interest rate determined under the
                    regulations of the Pension Benefit Guaranty Corporation
                    for determining the present value of a lump sum
                    distribution on plan termination that were in effect on
                    September 1, 1993, and using the provisions of the plan
                    as in effect on the day before such date of enactment;
                    but only if such provisions of the plan met the
                    requirements of section 417(e)(3) as in effect on the
                    day before such date of enactment.''
        (b) Amendments to Internal Revenue Code of 1986 Relating to Maximum
    Benefits.--Subparagraph (E) of section 415(b)(2) is amended--
                (1) by redesignating clauses (ii) and (iii) as clauses
            (iii) and (iv), respectively,
                (2) by striking clause (i) and inserting the following new
            clauses:
                                ``(i) Except as provided in clause (ii),
                            for purposes of adjusting any benefit or
                            limitation under subparagraph (B) or (C), the
                            interest rate assumption shall not be less than
                            the greater of 5 percent or the rate specified
                            in the plan.
                                ``(ii) For purposes of adjusting the
                            benefit or limitation of any form of benefit
                            subject to section 417(e)(3), the applicable
                            interest rate (as defined in section 417(e)(3))
                            shall be substituted for `5 percent' in clause
                            (i).'', and
                (3) by adding at the end the following new clause:
                                ``(v) For purposes of adjusting any benefit
                            or limitation under subparagraph (B), (C), or
                            (D), the mortality table used shall be the
                            table prescribed by the Secretary. Such table
                            shall be based on the prevailing commissioners'
                            standard table (described in section
                            807(d)(5)(A)) used to determine reserves for
                            group annuity contracts issued on the date the
                            adjustment is being made (without regard to any
                            other subparagraph of section 807(d)(5)).''
        (c) Amendments to Employee Retirement Income Security Act of
    1974.--
                (1) Determination of present value for purposes of
            restrictions on mandatory distributions.--Section 203(e)(2) of
            the Employee Retirement Income Security Act of 1974 (29 U.S.C.
            1053(e)(2)) is amended to read as follows:
        ``(2) For purposes of paragraph (1), the present value shall be
    calculated in accordance with section 205(g)(3).''
                (2) Determination of present value for purposes of
            restrictions on cash-outs.--Section 205(g)(3) of such Act (29
            U.S.C. 1055(g)(3)) is amended to read as follows:
                ``(3) Determination of present value.--
                        ``(A) In general.--
                                ``(i) Present value.--Except as provided in
                            subparagraph (B), for purposes of paragraphs
                            (1) and (2), the present value shall not be
                            less than the present value calculated by using
                            the applicable mortality table and the
                            applicable interest rate.
                                ``(ii) Definitions.--For purposes of clause
                            (i)--
                                        ``(I) Applicable mortality table.--
                                    The term `applicable mortality table'
                                    means the table prescribed by the
                                    Secretary of the Treasury. Such table
                                    shall be based on the prevailing
                                    commissioners' standard table
                                    (described in section 807(d)(5)(A) of
                                    the Internal Revenue Code of 1986) used
                                    to determine reserves for group annuity
                                    contracts issued on the date as of
                                    which present value is being determined
                                    (without regard to any other
                                    subparagraph of section 807(d)(5) of
                                    such Code).
                                        ``(II) Applicable interest rate.--
                                    The term `applicable interest rate'
                                    means the annual rate of interest on
                                    30-year Treasury securities for the
                                    month before the date of distribution
                                    or such other time as the Secretary of
                                    the Treasury may by regulations
                                    prescribe.
                        ``(B) Exception.--In the case of a distribution
                    from a plan that was adopted and in effect prior to the
                    date of the enactment of the Retirement Protection Act
                    of 1994, the present value of any distribution made
                    before the earlier of--
                                ``(i) the later of when a plan amendment
                            applying subparagraph (A) is adopted or made
                            effective, or
                                ``(ii) the first day of the first plan year
                            beginning after December 31, 1999,
                    shall be calculated, for purposes of paragraphs (1) and
                    (2), using the interest rate determined under the
                    regulations of the Pension Benefit Guaranty Corporation
                    for determining the present value of a lump sum
                    distribution on plan termination that were in effect on
                    September 1, 1993, and using the provisions of the plan
                    as in effect on the day before such date of enactment;
                    but only if such provisions of the plan met the
                    requirements of section 205(g)(3) as in effect on the
                    day before such date of enactment.''
        (d) Effective Date.--
                (1) In general.--The amendments made by this section shall
            apply to plan years and limitation years beginning after
            December 31, 1994; except that an employer may elect to treat
            the amendments made by this section as being effective on or
            after the date of the enactment of this Act.
                (2) No reduction in accrued benefits.--A participant's
            accrued benefit shall not be considered to be reduced in
            violation of section 411(d)(6) of the Internal Revenue Code of
            1986 or section 204(g) of the Employee Retirement Income
            Security Act of 1974 merely because (A) the benefit is
            determined in accordance with section 417(e)(3)(A) of such
            Code, as amended by this Act, or section 205(g)(3) of the
            Employee Retirement Income Security Act of 1974, as amended by
            this Act, or (B) the plan applies section 415(b)(2)(E) of such
            Code, as amended by this Act.
                (3) Section 415.--
                        (A) No reduction required.--An accrued benefit
                    shall not be required to be reduced below the accrued
                    benefit as of the last day of the last plan year
                    beginning before January 1, 1995, merely because of the
                    amendments made by subsection (b).
                        (B) Timing of plan amendment.--A plan that operates
                    in accordance with the amendments made by subsection
                    (b) shall not be treated as failing to satisfy section
                    401(a) of the Internal Revenue Code of 1986 or as not
                    being operated in accordance with the provisions of the
                    plan until such date as the Secretary of the Treasury
                    provides merely because the plan has not been amended
                    to include the amendments made by subsection (b).

    SEC. 768. ADJUSTMENTS TO LIEN FOR MISSED MINIMUM FUNDING CONTRIBUTIONS.

        (a) Amendments to the Internal Revenue Code of 1986.--
                (1) Clarification of applicability of provision.--Paragraph
            (2) of section 412(n) is amended by adding at the end the
            following new sentence: ``This subsection shall not apply to
            any plan to which section 4021 of the Employee Retirement
            Income Security Act of 1974 does not apply (as such section is
            in effect on the date of the enactment of the Retirement
            Protection Act of 1994).''.
                (2) Repeal of $1,000,000 offset.--Paragraph (3) of section
            412(n) is amended to read as follows:
                ``(3) Amount of lien.--For purposes of paragraph (1), the
            amount of the lien shall be equal to the aggregate unpaid
            balance of required installments and other payments required
            under this section (including interest)--
                        ``(A) for plan years beginning after 1987, and
                        ``(B) for which payment has not been made before
                    the due date.''
                (3) Repeal of 60-day delay.--Section 412(n)(4)(B) is
            amended by striking ``60th day following the''.
        (b) Amendments to the Employee Retirement Income Security Act of
    1974.--
                (1) Clarification of applicability of provision.--Section
            302(f)(1) of the Employee Retirement Income Security Act of
            1974 (29 U.S.C. 1082(f)(1)) is amended by striking ``to which
            this section applies'' and inserting ``covered under section
            4021 of this Act''.
                (2) Repeal of $1,000,000 offset.--Paragraph (3) of section
            302(f) of such Act is amended to read as follows:
                ``(3) Amount of lien.--For purposes of paragraph (1), the
            amount of the lien shall be equal to the aggregate unpaid
            balance of required installments and other payments required
            under this section (including interest)--
                        ``(A) for plan years beginning after 1987, and
                        ``(B) for which payment has not been made before
                    the due date.''
                (3) Repeal of 60-day delay.--Section 302(f)(4)(B) of such
            Act is amended by striking ``60th day following the''.
        (c) Effective Date.--The amendments made by this section shall be
    effective for installments and other payments required under section
    412 of the Internal Revenue Code of 1986 or under part 3 of subtitle B
    of the Employee Retirement Income Security Act of 1974 that become due
    on or after the date of enactment.

    SEC. 769. SPECIAL FUNDING RULES FOR CERTAIN PLANS.

        (a) Funding Rules Not To Apply to Certain Plans.--Any changes made
    by this Act to section 412 of the Internal Revenue Code of 1986 or to
    part 3 of subtitle B of title I of the Employee Retirement Income
    Security Act of 1974 shall not apply to--
                (1) a plan which is, on the date of enactment of this Act,
            subject to a restoration payment schedule order issued by the
            Pension Benefit Guaranty Corporation that meets the
            requirements of section 1.412(c)(1)-3 of the Treasury
            Regulations, or
                (2) a plan established by an affected air carrier (as
            defined under section 4001(a)(14)(C)(ii)(I) of such Act) and
            assumed by a new plan sponsor pursuant to the terms of a
            written agreement with the Pension Benefit Guaranty Corporation
            dated January 5, 1993, and approved by the United States
            Bankruptcy Court for the District of Delaware on December 30,
            1992.
        (b) Change in Actuarial Method.--Any amortization installments for
    bases established under section 412(b) of the Internal Revenue Code of
    1986 and section 302(b) of the Employee Retirement Income Security Act
    of 1974 for plan years beginning after December 31, 1987, and before
    January 1, 1993, by reason of nonelective changes under the frozen
    entry age actuarial cost method shall not be included in the
    calculation of offsets under section 412(l)(1)(A)(ii) of such Code and
    section 302(d)(1)(A)(ii) of such Act for the 1st 5 plan years beginning
    after December 31, 1994.

      PART II--AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT
                          INCOME SECURITY ACT OF 1974

    SEC. 771. REPORTABLE EVENTS.

        (a) Responsibility for Reportable Events Reporting.--Section
    4043(a) of the Employee Retirement Income Security Act of 1974 (29
    U.S.C. 1343(a)) is amended--
                (1) in the first sentence, by inserting ``or the
            contributing sponsor'' before ``knows or has reason to know'';
                (2) in the first sentence, by inserting ``, unless a notice
            otherwise required under this subsection has already been
            provided with respect to such event'' before the period at the
            end; and
                (3) by striking the last sentence.
        (b) Notification That Event Is About To Occur.--Section 4043 of
    such Act is amended by redesignating subsections (b), (c), and (d) as
    (c), (d), and (e), respectively, and by inserting after subsection (a)
    the following new subsection:
        ``(b)(1) The requirements of this subsection shall be applicable to
    a contributing sponsor if, as of the close of the preceding plan year--
                ``(A) the aggregate unfunded vested benefits (as determined
            under section 4006(a)(3)(E)(iii)) of plans subject to this
            title which are maintained by such sponsor and members of such
            sponsor's controlled groups (disregarding plans with no
            unfunded vested benefits) exceed $50,000,000, and
                ``(B) the funded vested benefit percentage for such plans
            is less than 90 percent.
    For purposes of subparagraph (B), the funded vested benefit percentage
    means the percentage which the aggregate value of the assets of such
    plans bears to the aggregate vested benefits of such plans (determined
    in accordance with section 4006(a)(3)(E)(iii)).
        ``(2) This subsection shall not apply to an event if the
    contributing sponsor, or the member of the contributing sponsor's
    controlled group to which the event relates, is--
                ``(A) a person subject to the reporting requirements of
            section 13 or 15(d) of the Securities Exchange Act of 1934, or
                ``(B) a subsidiary (as defined for purposes of such Act) of
            a person subject to such reporting requirements.
        ``(3) No later than 30 days prior to the effective date of an event
    described in paragraph (9), (10), (11), (12), or (13) of subsection
    (c), a contributing sponsor to which the requirements of this
    subsection apply shall notify the corporation that the event is about
    to occur.
        ``(4) The corporation may waive the requirement of this subsection
    with respect to any or all reportable events with respect to any
    contributing sponsor.''
        (c) New Reportable Events.--Subsection (c) of section 4043 of such
    Act (as redesignated by subsection (b)) is amended--
                (1) by striking the ``or'' at the end of paragraph (8);
                (2) by striking paragraph (9); and
                (3) by inserting after paragraph (8) the following new
            paragraphs:
                ``(9) when, as a result of an event, a person ceases to be
            a member of the controlled group;
                ``(10) when a contributing sponsor or a member of a
            contributing sponsor's controlled group liquidates in a case
            under title 11, United States Code, or under any similar
            Federal law or law of a State or political subdivision of a
            State;
                ``(11) when a contributing sponsor or a member of a
            contributing sponsor's controlled group declares an
            extraordinary dividend (as defined in section 1059(c) of the
            Internal Revenue Code of 1986) or redeems, in any 12-month
            period, an aggregate of 10 percent or more of the total
            combined voting power of all classes of stock entitled to vote,
            or an aggregate of 10 percent or more of the total value of
            shares of all classes of stock, of a contributing sponsor and
            all members of its controlled group;
                ``(12) when, in any 12-month period, an aggregate of 3
            percent or more of the benefit liabilities of a plan covered by
            this title and maintained by a contributing sponsor or a member
            of its controlled group are transferred to a person that is not
            a member of the controlled group or to a plan or plans
            maintained by a person or persons that are not such a
            contributing sponsor or a member of its controlled group; or
                ``(13) when any other event occurs that may be indicative
            of a need to terminate the plan and that is prescribed by the
            corporation in regulations.''
        (d) Disclosure Exemption.--Section 4043 of such Act is amended by
    adding at the end the following new subsection:
        ``(f) Any information or documentary material submitted to the
    corporation pursuant to this section shall be exempt from disclosure
    under section 552 of title 5, United States Code, and no such
    information or documentary material may be made public, except as may
    be relevant to any administrative or judicial action or proceeding.
    Nothing in this section is intended to prevent disclosure to either
    body of Congress or to any duly authorized committee or subcommittee of
    the Congress.''
        (e) Technical and Conforming Amendments.--
                (1) Subsection (a) of section 4043 of such Act, and
            subsections (d) and (e) of such section 4043 (as redesignated
            by subsection (b)), are each amended by striking ``subsection
            (b)'' each place it appears and inserting ``subsection (c)''.
                (2) Section 4042(a)(3) of such Act is amended by striking
            ``4043(b)(7)'' and inserting ``4043(c)(7)''.
        (f) Effective Date.--The amendments made by this section shall be
    effective for events occurring 60 days or more after the date of
    enactment of this Act.

    SEC. 772. CERTAIN INFORMATION REQUIRED TO BE FURNISHED TO PBGC.

        (a) General Rule.--Subtitle A of title IV of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1301 et seq.) is
    amended by adding at the end the following new section:

    ``SEC. 4010. AUTHORITY TO REQUIRE CERTAIN INFORMATION.

        ``(a) Information Required.--Each person described in subsection
    (b) shall provide the corporation annually, on or before a date
    specified by the corporation in regulations, with--
                ``(1) such records, documents, or other information that
            the corporation specifies in regulations as necessary to
            determine the liabilities and assets of plans covered by this
            title; and
                ``(2) copies of such person's audited (or, if unavailable,
            unaudited) financial statements, and such other financial
            information as the corporation may prescribe in regulations.
        ``(b) Persons Required To Provide Information.--The persons covered
    by subsection (a) are each contributing sponsor, and each member of a
    contributing sponsor's controlled group, of a single-employer plan
    covered by this title, if--
                ``(1) the aggregate unfunded vested benefits at the end of
            the preceding plan year (as determined under section
            4006(a)(3)(E)(iii)) of plans maintained by the contributing
            sponsor and the members of its controlled group exceed
            $50,000,000 (disregarding plans with no unfunded vested
            benefits);
                ``(2) the conditions for imposition of a lien described in
            section 302(f)(1)(A) and (B) of this Act or section
            412(n)(1)(A) and (B) of the Internal Revenue Code of 1986 have
            been met with respect to any plan maintained by the
            contributing sponsor or any member of its controlled group; or
                ``(3) minimum funding waivers in excess of $1,000,000 have
            been granted with respect to any plan maintained by the
            contributing sponsor or any member of its controlled group, and
            any portion thereof is still outstanding.
        ``(c) Information Exempt From Disclosure Requirements.--Any
    information or documentary material submitted to the corporation
    pursuant to this section shall be exempt from disclosure under section
    552 of title 5, United States Code, and no such information or
    documentary material may be made public, except as may be relevant to
    any administrative or judicial action or proceeding. Nothing in this
    section is intended to prevent disclosure to either body of Congress or
    to any duly authorized committee or subcommittee of the Congress.''
        (b) Clerical Amendment.--The table of contents contained in section
    1 of such Act is amended by inserting after the item relating to
    section 4009 the following new item:

    ``Sec. 4010. Authority to require certain information.''
        (c) Effective Date.--The amendments made by this section shall be
    effective on the date of enactment of this Act.

    SEC. 773. ENFORCEMENT OF MINIMUM FUNDING REQUIREMENTS.

        (a) In General.--Paragraph (1) of section 4003(e) of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1303(e)(1)) is
    amended--
                (1) by inserting ``(A)'' after ``enforce''; and
                (2) by striking the period after ``title'' and inserting
            ``, and (B) in the case of a plan which is covered under this
            title (other than a multiemployer plan) and for which the
            conditions for imposition of a lien described in section
            302(f)(1)(A) and (B) of this Act or section 412(n)(1)(A) and
            (B) of the Internal Revenue Code of 1986 have been met, section
            302 of this Act and section 412 of such Code.''
        (b) Effective Date.--The amendments made by this section shall be
    effective for installments and other payments required under section
    302 of the Employee Retirement Income Security Act of 1974 or section
    412 of the Internal Revenue Code of 1986 that become due on or after
    the date of the enactment of this Act.

    SEC. 774. COMPUTATION OF ADDITIONAL PBGC PREMIUM.

        (a) Phase-Out of Variable Rate Premium Cap.--
                (1) In general.--Subparagraph (E) of section 4006(a)(3) of
            the Employee Retirement Income Security Act of 1974 (29 U.S.C.
            1306(a)(3)(E)) is amended by striking clause (iv), and by
            redesignating clause (v) as clause (iv).
                (2) Effective date.--
                        (A) In general.--The amendments made by this
                    subsection shall be effective for plan years beginning
                    on or after July 1, 1994.
                        (B) Transition rule.--In the case of plan years
                    beginning on or after July 1, 1994, and before July 1,
                    1996, the additional premium payable with respect to
                    any participant by reason of the amendments made by
                    this section shall not exceed the sum of--
                                (i) $53, and
                                (ii) the product derived by multiplying--
                                        (I) the excess (if any) of the
                                    amount determined under clause (i) of
                                    section 4006(a)(3)(E) of the Employee
                                    Retirement Income Security Act of 1974,
                                    over $53, by
                                        (II) the applicable percentage.
                    For purposes of this subparagraph, the applicable
                    percentage shall be the percentage specified in the
                    following table:

                  For the plan year beginning:
                                                              The applicable
            on or after                  but before           percentage is:

    July 1, 1994...............  July 1, 1995..............     20 percent
    July 1, 1995...............  July 1, 1996..............     60 percent

        (b) Interest Rate and Asset Valuation.--
                (1) Interest rate.--Subclause (II) of section
            4006(a)(3)(E)(iii) of the Employee Retirement Income Security
            Act of 1974 is amended--
                        (A) by striking ``80 percent'' and inserting ``the
                    applicable percentage'', and
                        (B) by adding at the end the following new
                    sentence: ``For purposes of this subclause, the
                    applicable percentage is 80 percent for plan years
                    beginning before July 1, 1997, 85 percent for plan
                    years beginning after June 30, 1997, and before the 1st
                    plan year to which the first tables prescribed under
                    section 302(d)(7)(C)(ii)(II) apply, and 100 percent for
                    such 1st plan year and subsequent plan years.''
                (2) Asset valuation.--Clause (iii) of section 4006(a)(3)(E)
            of such Act is amended--
                        (A) by inserting ``or (III)'' after ``subclause
                    (II)'' in subclause (I), and
                        (B) by adding at the end the following new
                    subclause:
                                        ``(III) In the case of any plan
                                    year for which the applicable
                                    percentage under subclause (II) is 100
                                    percent, the value of the plan's assets
                                    used in determining unfunded current
                                    liability under subclause (I) shall be
                                    their fair market value.''
                (3) Effective date.--The amendments made by this subsection
            shall apply to plan years beginning after the date of the
            enactment of this Act.
        (c) Transition Rule for Certain Regulated Public Utilities.--In the
    case of a regulated public utility described in section
    7701(a)(33)(A)(i) of the Internal Revenue Code of 1986, the amendments
    made by this section shall not apply to plan years beginning before the
    earlier of--
                (1) January 1, 1998, or
                (2) the date the regulated public utility begins to collect
            from utility customers rates that reflect the costs incurred or
            projected to be incurred for additional premiums under section
            4006(a)(3)(E) of the Employee Retirement Income Security Act of
            1974 pursuant to final and nonappealable determinations by all
            public utility commissions (or other authorities having
            jurisdiction over the rates and terms of service by the
            regulated public utility) that the costs are just and
            reasonable and recoverable from customers of the regulated
            public utility.

    SEC. 775. DISCLOSURE TO PARTICIPANTS.

        (a) Participant Notice Requirement.--Subtitle A of title IV of the
    Employee Retirement Income Security Act of 1974 (as amended by section
    772 of this Act) is further amended by adding at the end the following
    new section:

    ``SEC. 4011. NOTICE TO PARTICIPANTS.

        ``(a) In General.--The plan administrator of a plan subject to the
    additional premium under section 4006(a)(3)(E) shall provide, in a form
    and manner and at such time as prescribed in regulations of the
    corporation, notice to plan participants and beneficiaries of the
    plan's funding status and the limits on the corporation's guaranty
    should the plan terminate while underfunded. Such notice shall be
    written in a manner so as to be understood by the average plan
    participant.
        ``(b) Exception.--Subsection (a) shall not apply to any plan to
    which section 302(d) does not apply for the plan year by reason of
    paragraph (9) thereof.''
        (b) Clerical Amendment.--The table of contents contained in section
    1 of such Act is amended by inserting after the item relating to
    section 4010 (as added by section 772 of this Act) the following new
    item:

    ``Sec. 4011. Notice to participants.''
        (c) Effective Date.--The amendment made by this section shall be
    effective for plan years beginning after the date of enactment of this
    Act.

    SEC. 776. MISSING PARTICIPANTS.

        (a) In General.--Subtitle C of title IV of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1341 et seq.) is amended by
    adding at the end the following new section:

    ``SEC. 4050. MISSING PARTICIPANTS.

        ``(a) General Rule.--
                ``(1) Payment to the corporation.--A plan administrator
            satisfies section 4041(b)(3)(A) in the case of a missing
            participant only if the plan administrator--
                        ``(A) transfers the participant's designated
                    benefit to the corporation or purchases an irrevocable
                    commitment from an insurer in accordance with clause
                    (i) of section 4041(b)(3)(A), and
                        ``(B) provides the corporation such information and
                    certifications with respect to such designated benefits
                    or irrevocable commitments as the corporation shall
                    specify.
                ``(2) Treatment of transferred assets.--A transfer to the
            corporation under this section shall be treated as a transfer
            of assets from a terminated plan to the corporation as trustee,
            and shall be held with assets of terminated plans for which the
            corporation is trustee under section 4042, subject to the rules
            set forth in that section.
                ``(3) Payment by the corporation.--After a missing
            participant whose designated benefit was transferred to the
            corporation is located--
                        ``(A) in any case in which the plan could have
                    distributed the benefit of the missing participant in a
                    single sum without participant or spousal consent under
                    section 205(g), the corporation shall pay the
                    participant or beneficiary a single sum benefit equal
                    to the designated benefit paid the corporation plus
                    interest as specified by the corporation, and
                        ``(B) in any other case, the corporation shall pay
                    a benefit based on the designated benefit and the
                    assumptions prescribed by the corporation at the time
                    that the corporation received the designated benefit.
            The corporation shall make payments under subparagraph (B)
            available in the same forms and at the same times as a
            guaranteed benefit under section 4022 would be available to be
            paid, except that the corporation may make a benefit available
            in the form of a single sum if the plan provided a single sum
            benefit (other than a single sum described in subsection
            (b)(2)(A)).
        ``(b) Definitions.--For purposes of this section--
                ``(1) Missing participant.--The term `missing participant'
            means a participant or beneficiary under a terminating plan
            whom the plan administrator cannot locate after a diligent
            search.
                ``(2) Designated benefit.--The term `designated benefit'
            means the single sum benefit the participant would receive--
                        ``(A) under the plan's assumptions, in the case of
                    a distribution that can be made without participant or
                    spousal consent under section 205(g);
                        ``(B) under the assumptions of the corporation in
                    effect on the date that the designated benefit is
                    transferred to the corporation, in the case of a plan
                    that does not pay any single sums other than those
                    described in subparagraph (A); or
                        ``(C) under the assumptions of the corporation or
                    of the plan, whichever provides the higher single sum,
                    in the case of a plan that pays a single sum other than
                    those described in subparagraph (A).
        ``(c) Regulatory Authority.--The corporation shall prescribe such
    regulations as are necessary to carry out the purposes of this section,
    including rules relating to what will be considered a diligent search,
    the amount payable to the corporation, and the amount to be paid by the
    corporation.''
        (b) Conforming Title IV Amendments.--
                (1) Amendment to section 4003.--Section 4003(a) of such Act
            (29 U.S.C. 1303(a)) is amended in the second sentence by
            inserting before the period the following: ``and whether
            section 4050(a) has been satisfied''.
                (2) Amendment to section 4005.--Section 4005(b)(2)(A) of
            such Act (29 U.S.C. 1305(b)(2)(A)) is amended by inserting ``or
            benefits payable under section 4050'' after ``section 4022A''.
                (3) Amendment to section 4041.--Section 4041(b)(3)(A)(ii)
            of such Act (29 U.S.C. 1341(b)(3)(A)(ii)) is amended by adding
            at the end the following new sentence: ``A transfer of assets
            to the corporation in accordance with section 4050 on behalf of
            a missing participant shall satisfy this subparagraph with
            respect to such participant.''
        (c) Conforming ERISA Amendments.--
                (1) The table of contents contained in section 1 of the
            Employee Retirement Income Security Act of 1974 is amended by
            inserting after the item related to section 4049 the following
            new item:

    ``Sec. 4050. Missing participants.''
                (2) Section 206 of such Act (29 U.S.C. 1056) is amended by
            adding at the end the following new subsection:
        ``(f) Missing Participants in Terminated Plans.--In the case of a
    plan covered by title IV, the plan shall provide that, upon termination
    of the plan, benefits of missing participants shall be treated in
    accordance with section 4050.''
        (d) Conforming Internal Revenue Code Amendments.--Section 401(a),
    as amended by section 766 of this Act, is further amended by inserting
    after paragraph (33) the following new paragraph:
                ``(34) Benefits of missing participants on plan
            termination.--In the case of a plan covered by title IV of the
            Employee Retirement Income Security Act of 1974, a trust
            forming part of such plan shall not be treated as failing to
            constitute a qualified trust under this section merely because
            the pension plan of which such trust is a part, upon its
            termination, transfers benefits of missing participants to the
            Pension Benefit Guaranty Corporation in accordance with section
            4050 of such Act.''
        (e) Effective Date.--The provisions of this section shall be
    effective with respect to distributions that occur in plan years
    commencing after final regulations implementing these provisions are
    prescribed by the Pension Benefit Guaranty Corporation.

    SEC. 777. MODIFICATION OF MAXIMUM GUARANTEE FOR DISABILITY BENEFITS.

        (a) In General.--Section 4022(b)(3) of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1322(b)(3)) is amended by adding
    at the end the following new sentences: ``The maximum guaranteed
    monthly benefit shall not be reduced solely on account of the age of a
    participant in the case of a benefit payable by reason of disability
    that occurred on or before the termination date, if the participant
    demonstrates to the satisfaction of the corporation that the Social
    Security Administration has determined that the participant satisfies
    the definition of disability under title II or XVI of the Social
    Security Act, and the regulations thereunder. If a benefit payable by
    reason of disability is converted to an early or normal retirement
    benefit for reasons other than a change in the health of the
    participant, such early or normal retirement benefit shall be treated
    as a continuation of the benefit payable by reason of disability and
    this subparagraph shall continue to apply.''
        (b) Effective Date.--The amendment made by this section shall be
    effective for plan terminations under section 4041(c) of the Employee
    Retirement Income Security Act of 1974 with respect to which notices of
    intent to terminate are provided under section 4041(a)(2) of such Act,
    or under section 4042 of such Act with respect to which proceedings are
    instituted by the corporation, on or after the date of enactment of
    this Act.

    SEC. 778. PROCEDURES TO FACILITATE DISTRIBUTION OF TERMINATION
                  BENEFITS.

        (a) Remedies for Noncompliance With Requirements for Standard
    Termination.--
                (1) Notice of noncompliance.--Section 4041(b)(2)(C)(i) of
            the Employee Retirement Income Security Act of 1974 (29 U.S.C.
            1341(b)(2)(C)(i)) is amended--
                        (A) by striking subclause (I) and inserting the
                    following new subclause:
                                        ``(I) it determines, based on the
                                    notice sent under paragraph (2)(A) of
                                    subsection (b), that there is reason to
                                    believe that the plan is not sufficient
                                    for benefit liabilities,'';
                        (B) by striking the period at the end of subclause
                    (II) and inserting ``, or''; and
                        (C) by adding at the end the following new
                    subclause:
                                        ``(III) it determines that any
                                    other requirement of subparagraph (A)
                                    or (B) of this paragraph or of
                                    subsection (a)(2) has not been met,
                                    unless it further determines that the
                                    issuance of such notice would be
                                    inconsistent with the interests of
                                    participants and beneficiaries.''
                (2) Effective date.--The amendments made by this subsection
            shall apply to any plan termination under section 4041(b) of
            the Employee Retirement Income Security Act of 1974 with
            respect to which the Pension Benefit Guaranty Corporation has
            not, as of the date of enactment of this Act, issued a notice
            of noncompliance that has become final, or otherwise issued a
            final determination that the plan termination is nullified.
        (b) Distress Termination Criteria for Banking Institutions.--
                (1) Clarification of distress criterion.--Subclause (I) of
            section 4041(c)(2)(B)(i) of the Employee Retirement Income
            Security Act of 1974 (29 U.S.C. 1341(c)(2)(B)(i)) is amended by
            inserting after ``under any similar'' the following: ``Federal
            law or''.
                (2) Effective date.--The amendment made by this subsection
            shall be effective as if included in the Single-Employer
            Pension Plan Amendments Act of 1986.

                           PART III--EFFECTIVE DATES

    SEC. 781. EFFECTIVE DATES.

        Except as otherwise provided in this subtitle, the amendments made
    by this subtitle shall be effective on the date of enactment of this
    Act.

                        TITLE VIII--PIONEER PREFERENCES

    SEC. 801. PIONEER PREFERENCES.

        Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j))
    is amended by adding at the end the following new paragraph:
                ``(13) Recovery of value of public spectrum in connection
            with pioneer preferences.--
                        ``(A) In general.--Notwithstanding paragraph
                    (6)(G), the Commission shall not award licenses
                    pursuant to a preferential treatment accorded by the
                    Commission to persons who make significant
                    contributions to the development of a new
                    telecommunications service or technology, except in
                    accordance with the requirements of this paragraph.
                        ``(B) Recovery of value.--The Commission shall
                    recover for the public a portion of the value of the
                    public spectrum resource made available to such person
                    by requiring such person, as a condition for receipt of
                    the license, to agree to pay a sum determined by--
                                ``(i) identifying the winning bids for the
                            licenses that the Commission determines are
                            most reasonably comparable in terms of
                            bandwidth, scope of service area, usage
                            restrictions, and other technical
                            characteristics to the license awarded to such
                            person, and excluding licenses that the
                            Commission determines are subject to bidding
                            anomalies due to the award of preferential
                            treatment;
                                ``(ii) dividing each such winning bid by
                            the population of its service area (hereinafter
                            referred to as the per capita bid amount);
                                ``(iii) computing the average of the per
                            capita bid amounts for the licenses identified
                            under clause (i);
                                ``(iv) reducing such average amount by 15
                            percent; and
                                ``(v) multiplying the amount determined
                            under clause (iv) by the population of the
                            service area of the license obtained by such
                            person.
                        ``(C) Installments permitted.--The Commission shall
                    require such person to pay the sum required by
                    subparagraph (B) in a lump sum or in guaranteed
                    installment payments, with or without royalty payments,
                    over a period of not more than 5 years.
                        ``(D) Rulemaking on pioneer preferences.--Except
                    with respect to pending applications described in
                    clause (iv) of this subparagraph, the Commission shall
                    prescribe regulations specifying the procedures and
                    criteria by which the Commission will evaluate
                    applications for preferential treatment in its
                    licensing processes (by precluding the filing of
                    mutually exclusive applications) for persons who make
                    significant contributions to the development of a new
                    service or to the development of new technologies that
                    substantially enhance an existing service. Such
                    regulations shall--
                                ``(i) specify the procedures and criteria
                            by which the significance of such contributions
                            will be determined, after an opportunity for
                            review and verification by experts in the radio
                            sciences drawn from among persons who are not
                            employees of the Commission or by any applicant
                            for such preferential treatment;
                                ``(ii) include such other procedures as may
                            be necessary to prevent unjust enrichment by
                            ensuring that the value of any such
                            contribution justifies any reduction in the
                            amounts paid for comparable licenses under this
                            subsection;
                                ``(iii) be prescribed not later than 6
                            months after the date of enactment of this
                            paragraph;
                                ``(iv) not apply to applications that have
                            been accepted for filing on or before September
                            1, 1994; and
                                ``(v) cease to be effective on the date of
                            the expiration of the Commission's authority
                            under subparagraph (F).
                        ``(E) Implementation with respect to pending
                    applications.--In applying this paragraph to any
                    broadband licenses in the personal communications
                    service awarded pursuant to the preferential treatment
                    accorded by the Federal Communications Commission in
                    the Third Report and Order in General Docket 90-314
                    (FCC 93-550, released February 3, 1994)--
                                ``(i) the Commission shall not reconsider
                            the award of preferences in such Third Report
                            and Order, and the Commission shall not delay
                            the grant of licenses based on such awards more
                            than 15 days following the date of enactment of
                            this paragraph, and the award of such
                            preferences and licenses shall not be subject
                            to administrative or judicial review;
                                ``(ii) the Commission shall not alter the
                            bandwidth or service areas designated for such
                            licenses in such Third Report and Order;
                                ``(iii) except as provided in clause (v),
                            the Commission shall use, as the most
                            reasonably comparable licenses for purposes of
                            subparagraph (B)(i), the broadband licenses in
                            the personal communications service for blocks
                            A and B for the 20 largest markets (ranked by
                            population) in which no applicant has obtained
                            preferential treatment;
                                ``(iv) for purposes of subparagraph (C),
                            the Commission shall permit guaranteed
                            installment payments over a period of 5 years,
                            subject to--
                                        ``(I) the payment only of interest
                                    on unpaid balances during the first 2
                                    years, commencing not later than 30
                                    days after the award of the license
                                    (including any preferential treatment
                                    used in making such award) is final and
                                    no longer subject to administrative or
                                    judicial review, except that no such
                                    payment shall be required prior to the
                                    date of completion of the auction of
                                    the comparable licenses described in
                                    clause (iii); and
                                        ``(II) payment of the unpaid
                                    balance and interest thereon after the
                                    end of such 2 years in accordance with
                                    the regulations prescribed by the
                                    Commission; and
                                ``(v) the Commission shall recover with
                            respect to broadband licenses in the personal
                            communications service an amount under this
                            paragraph that is equal to not less than
                            $400,000,000, and if such amount is less than
                            $400,000,000, the Commission shall recover an
                            amount equal to $400,000,000 by allocating such
                            amount among the holders of such licenses based
                            on the population of the license areas held by
                            each licensee.
                    The Commission shall not include in any amounts
                    required to be collected under clause (v) the interest
                    on unpaid balances required to be collected under
                    clause (iv).
                        ``(F) Expiration.--The authority of the Commission
                    to provide preferential treatment in licensing
                    procedures (by precluding the filing of mutually
                    exclusive applications) to persons who make significant
                    contributions to the development of a new service or to
                    the development of new technologies that substantially
                    enhance an existing service shall expire on September
                    30, 1998.
                        ``(G) Effective date.--This paragraph shall be
                    effective on the date of its enactment and apply to any
                    licenses issued on or after August 1, 1994, by the
                    Federal Communications Commission pursuant to any
                    licensing procedure that provides preferential
                    treatment (by precluding the filing of mutually
                    exclusive applications) to persons who make significant
                    contributions to the development of a new service or to
                    the development of new technologies that substantially
                    enhance an existing service.''.

                Passed the House of Representatives November 29, 1994.

                Attest:

                                                                     Clerk.