[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5110 Enrolled Bill (ENR)]
H.R.5110
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-
four
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.
Part I--Pension Plan Funding
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.
Sec. 755. Exceptions to excise tax on nondeductible contributions.
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. Modification of quarterly contribution requirement.
SUBPART C--OTHER FUNDING PROVISIONS
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; 81.6 cents/kg
other wool, not +20%
finer than 46s...... Free
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; 81.6 cents/kg
other wool, not +20%
finer than 46s...... Free
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; 81.6 cents/kg
other wool, not +20%
finer than 46s...... Free
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 ``sub-
paragraph (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 proPcedural
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 771(A)(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 subparaPgraph (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 Pamended--
(1) by striking ``Products.--No'' and inserting P``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 Pover-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 Pamended--
(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 Pamended--
(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 Pamended--
(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
Pamended--
(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.
Part I--Pension Plan Funding
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.
Sec. 755. Exceptions to excise tax on nondeductible contributions.
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. Modification of quarterly contribution requirement.
SUBPART C--OTHER FUNDING PROVISIONS
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 Pamended 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 Pin 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 procedureP
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.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.