[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.