[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.