[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 445 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 445

To amend the Food, Agriculture, Conservation, and Trade Act of 1990 to 
    improve monitoring of the domestic uses made of certain foreign 
 commodities in order to ensure that agricultural commodities exported 
 under agricultural trade programs are entirely produced in the United 
                    States, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 25 (legislative day, January 5), 1993

   Mr. Conrad (for himself Mr. Dorgan, Mr. Wellstone, Mr. Craig, Mr. 
 Feingold, Mr. Burns, Mr. Pressler, Mr. Grassley, Mrs. Murray, and Mr. 
   Daschle) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To amend the Food, Agriculture, Conservation, and Trade Act of 1990 to 
    improve monitoring of the domestic uses made of certain foreign 
 commodities in order to ensure that agricultural commodities exported 
 under agricultural trade programs are entirely produced in the United 
                    States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Agricultural Export Program 
Protection Act of 1993''.

SEC. 2. AGRICULTURAL EXPORT PROGRAM PROTECTION.

    Title XV of the Food, Agriculture, Conservation, and Trade Act of 
1990 (Public Law 101-624) is amended by adding at the end the following 
new subtitle:

          ``Subtitle G--Agricultural Export Program Protection

``SEC. 1581. DEFINITIONS.

    ``As used in this subtitle:
            ``(1) Agricultural trade program.--The term `agricultural 
        trade program' means an export promotion, export credit, export 
        credit guarantee, export bonus, or other export or 
        international food aid program carried out through, or 
        administered by, the Commodity Credit Corporation, including 
        such a program carried out under--
                    ``(A) the Agricultural Trade Act of 1978 (7 U.S.C. 
                5601 et seq.)--
                            ``(i) including the export enhancement 
                        program established by section 301 of such Act 
                        (7 U.S.C. 5651); but
                            ``(ii) excluding the market promotion 
                        program established by section 203 of such Act 
                        (7 U.S.C. 5623);
                    ``(B) the Agricultural Trade Development and 
                Assistance Act of 1954 (7 U.S.C. 1691 et seq.);
                    ``(C) section 416 of the Agricultural Act of 1949 
                (7 U.S.C. 1431); or
                    ``(D) section 5 of the Commodity Credit Corporation 
                Charter Act (15 U.S.C. 714c).
            ``(2) Covered foreign commodity.--The term `covered foreign 
        commodity' means wheat, feed grains, or soybeans produced in a 
        foreign country that is imported into the customs territory of 
        the United States.
            ``(3) Entry.--The term `entry' means the entry into, or the 
        withdrawal from warehouse for consumption in, the customs 
        territory of the United States.
            ``(4) Person.--The term `person' includes an exporter, an 
        assignee, and a participant in an agricultural trade program.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(6) United states agricultural commodity.--The term 
        `United States agricultural commodity' has the same meaning 
        given the term in section 102(7) of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5602(7)).

``SEC. 1582. MONITORING OF DOMESTIC USES MADE OF CERTAIN FOREIGN 
              COMMODITIES.

    ``(a) In General.--
            ``(1) End-use certificate.--An end-use certificate that 
        meets the requirements of subsection (b) shall be included in 
        the documentation covering the entry of any covered foreign 
        commodity.
            ``(2) Quarterly reports.--A consignee of a covered foreign 
        commodity (including a secondary consignee of a covered foreign 
        commodity and a consignee of a covered foreign commodity that 
        has been commingled with a commodity produced in the United 
        States) shall submit to the Secretary a quarterly report that 
        certifies--
                    ``(A) what percentage of the covered foreign 
                commodity that is subject to an end-use certificate was 
                used by the consignee during the quarter; and
                    ``(B)(i) that the covered foreign commodity 
                referred to in paragraph (1) was used by the consignee 
                for the purpose stated in the end-use certificate; or
                    ``(ii) if ownership of the covered foreign 
                commodity is transferred, the name and address and 
                other information, as determined by the Secretary, of 
                the entity (or consignee) to whom it is transferred.
    ``(b) End-Use Certificate and Quarterly Report Content.--The end-
use certificates and quarterly reports required under subsection (a) 
shall be in such form, and require such information, as the Secretary 
considers necessary or appropriate to carry out this section. At a 
minimum, the Secretary shall require that end-use certificates and 
quarterly reports indicate--
            ``(1) in the case of the end-use certificate--
                    ``(A) the name and address of the importer of 
                record of the covered foreign commodity that is subject 
                to the certificate;
                    ``(B) the name and address of the consignee of the 
                covered foreign commodity;
                    ``(C) the identification of the country of origin 
                of the covered foreign commodity;
                    ``(D) a description by class and quantity of the 
                covered foreign commodity;
                    ``(E) the specification of the purpose for which 
                the consignee will use the covered foreign commodity; 
                and
                    ``(F) the identification of the transporter of the 
                covered foreign commodity from the port of entry to the 
                processing facility of the consignee; and
            ``(2) in the case of the quarterly report--
                    ``(A) the information referred to in subparagraphs 
                (A) and (B) of paragraph (1);
                    ``(B) the identification of the end-use 
                certificates currently held by the consignee;
                    ``(C) a statement of the quantity of the covered 
                foreign commodity that is the subject of each of the 
                end-use certificates identified under subparagraph (B) 
                that was used during the quarter;
                    ``(D) a statement of the use made during the 
                quarter by the consignee of each quantity referred to 
                in subparagraph (C);
                    ``(E) a statement of the quantity of the covered 
                foreign commodity that was exported by the consignee 
                during the quarter;
                    ``(F) a statement of the quantity of the covered 
                foreign commodity that was commingled with commodities 
                produced in the United States and the disposition of 
                the commingled commodities; and
                    ``(G) a statement of the quantity of any covered 
                foreign commodity that is transferred to a subsequent 
                consignee, the name and address of the consignee, and 
                the change in end-use.
    ``(c) Sales Price.--The Secretary may require the importer or the 
first consignee of a covered foreign commodity to report to the 
Secretary the sales price of a covered foreign commodity that is 
subject to an end-use certificate issued under this section if the 
Secretary considers the sales price necessary to facilitate enforcement 
of United States trade laws and international agreements.
    ``(d) Confidentiality.--In carrying out this section, the Secretary 
shall take such actions as are necessary to ensure the confidentiality 
and privacy of purchasers of covered foreign commodities.
    ``(e) Entry Prohibited Unless End-Use Certificate Presented.--The 
Commissioner of Customs may not permit the entry of a covered foreign 
commodity unless the importer of record presents at the time of entry 
of the covered foreign commodity an end-use certificate that complies 
with the applicable requirements of this section.
    ``(f) Penalties.--
            ``(1) Customs penalties.--End-use certificates required 
        under this section shall be treated as any other customs 
        documentation for purposes of applying the customs laws that 
        prohibit the entry, or the attempt to enter, merchandise by 
        fraud, gross negligence, or negligence.
            ``(2) Civil penalties.--Any person who knowingly violates 
        any requirement prescribed by the Secretary to carry out this 
        section is punishable by a civil penalty in an amount not to 
        exceed $10,000.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as are necessary to carry out this section, including regulations 
regarding the preparation and submission of the quarterly reports 
required under subsection (a)(2).

``SEC. 1583. COMPLIANCE PROVISIONS.

    ``Subsections (b) and (c) of section 402 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5662) shall apply to the programs authorized 
under this subtitle.

``SEC. 1584. SUSPENSION OR DEBARMENT FOR USE OF FOREIGN AGRICULTURAL 
              COMMODITIES IN CERTAIN AGRICULTURAL TRADE PROGRAMS.

    ``(a) Hearing.--The Commodity Credit Corporation shall provide a 
person with an opportunity for a hearing before suspending or debarring 
the person from participation in an agricultural trade program for 
using a foreign agricultural commodity in violation of the terms and 
conditions of the program.
    ``(b) Waiver.--
            ``(1) In general.--The Commodity Credit Corporation may 
        waive the suspension or debarment of a person from 
        participation in an agricultural trade program for using a 
        foreign agricultural commodity in violation of the terms and 
        conditions of the program if the person demonstrates, to the 
        satisfaction of the Corporation, that--
                    ``(A) the use of the foreign agricultural commodity 
                was unintentional; and
                    ``(B) the quantity of the foreign agricultural 
                commodity used was less than 1 percent of the total 
                quantity of the commodity involved in the transaction.
            ``(2) Other penalties.--Any waiver by the Commodity Credit 
        Corporation of a suspension or debarment of a person under 
        paragraph (1) shall not affect the liability of the person for 
        any other penalty imposed under an agricultural trade program 
        for the quantity of the foreign agricultural commodity 
        involved.''.

SEC. 3. EFFECTIVE DATE.

    This Act and the amendment made by this Act shall become effective 
120 days after the date of enactment of this Act.

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