[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3009 Engrossed Amendment House (EAH)]


  2d Session

                               H.R. 3009

_______________________________________________________________________

                  HOUSE AMENDMENT TO SENATE AMENDMENT
                In the House of Representatives, U. S.,

                                                         June 26, 2002.

    Resolved, That the House agree to the amendment of the Senate to the bill 
(H.R. 3009) entitled ``An Act to extend the Andean Trade Preference Act, to 
grant additional trade benefits under that Act, and for other purposes'', with 
the following

                  HOUSE AMENDMENT TO SENATE AMENDMENT:

            In lieu of the matter proposed to be inserted by the Senate 
      amendment, insert the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Trade Act of 2002''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into 4 divisions as follows:
            (1) Division a.--Trade Adjustment Assistance.
            (2) Division b.--Bipartisan Trade Promotion Authority.
            (3) Division c.--Andean Trade Preference Act.
            (4) Division d.--Extension of Certain Preferential Trade 
        Treatment and Other Provisions.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of act into divisions; table of contents.

                DIVISION A--TRADE ADJUSTMENT ASSISTANCE

Sec. 101. Short title.

              TITLE I--TRADE ADJUSTMENT ASSISTANCE PROGRAM

Sec. 111. Reauthorization of trade adjustment assistance program.
Sec. 112. Filing of petitions and provision of rapid response 
                            assistance; expedited review of petitions 
                            by Secretary of Labor.
Sec. 113. Group eligibility requirements.
Sec. 114. Qualifying requirements for trade readjustment allowances.
Sec. 115. Waivers of training requirements.
Sec. 116. Amendments to limitations on trade readjustment allowances.
Sec. 117. Annual total amount of payments for training.
Sec. 118. Authority of States with respect to costs of approved 
                            training and supplemental assistance.
Sec. 119. Provision of employer-based training.
Sec. 120. Coordination with title I of the Workforce Investment Act of 
                            1998.
Sec. 121. Expenditure period.
Sec. 122. Declaration of policy; sense of Congress.

  TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS

Sec. 201.  Credit for health insurance costs of individuals receiving a 
                            trade readjustment allowance or a benefit 
                            from the Pension Benefit Guaranty 
                            Corporation.
Sec. 202.  Advance payment of credit for health insurance costs of 
                            eligible individuals.

                   TITLE III--CUSTOMS REAUTHORIZATION

Sec. 301. Short title.

               Subtitle A--United States Customs Service

  Chapter 1--Drug Enforcement and Other Noncommercial and Commercial 
                               Operations

Sec. 311. Authorization of appropriations for noncommercial operations, 
                            commercial operations, and air and marine 
                            interdiction.
Sec. 312. Antiterrorist and illicit narcotics detection equipment for 
                            the United States-Mexico border, United 
                            States-Canada border, and Florida and the 
                            Gulf Coast seaports.
Sec. 313. Compliance with performance plan requirements.

     Chapter 2--Child Cyber-Smuggling Center of the Customs Service

Sec. 321. Authorization of appropriations for program to prevent child 
                            pornography/child sexual exploitation.

                  Chapter 3--Miscellaneous Provisions

Sec. 331. Additional Customs Service officers for United States-Canada 
                            border.
Sec. 332. Study and report relating to personnel practices of the 
                            Customs Service.
Sec. 333. Study and report relating to accounting and auditing 
                            procedures of the Customs Service.
Sec. 334. Establishment and implementation of cost accounting system; 
                            reports.
Sec. 335. Study and report relating to timeliness of prospective 
                            rulings.
Sec. 336. Study and report relating to customs user fees.
Sec. 337. Fees for customs inspections at express courier facilities.
Sec. 338. National customs automation program.

                  Chapter 4--Antiterrorism Provisions

Sec. 341. Immunity for United States officials that act in good faith.
Sec. 342. Emergency adjustments to offices, ports of entry, or staffing 
                            of the customs service.
Sec. 343. Mandatory advanced electronic information for cargo and 
                            passengers.
Sec. 344. Border search authority for certain contraband in outbound 
                            mail.
Sec. 345. Authorization of appropriations for reestablishment of 
                            customs operations in New York City.

              Chapter 5--Textile Transshipment Provisions

Sec. 351. Gao audit of textile transshipment monitoring by customs 
                            service.
Sec. 352. Authorization of appropriations for textile transshipment 
                            enforcement operations.
Sec. 353. Implementation of the african growth and opportunity act.

      Subtitle B--Office of the United States Trade Representative

Sec. 361. Authorization of appropriations.

        Subtitle C--United States International Trade Commission

Sec. 371. Authorization of appropriations.

                   Subtitle D--Other trade provisions

Sec. 381. Increase in aggregate value of articles exempt from duty 
                            acquired abroad by United States residents.
Sec. 382. Regulatory audit procedures.

            DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY

                  TITLE XXI--TRADE PROMOTION AUTHORITY

Sec. 2101. Short title and findings.
Sec. 2102. Trade negotiating objectives.
Sec. 2103. Trade agreements authority.
Sec. 2104. Consultations and assessment.
Sec. 2105. Implementation of trade agreements.
Sec. 2106. Treatment of certain trade agreements for which negotiations 
                            have already begun.
Sec. 2107. Congressional oversight group.
Sec. 2108. Additional implementation and enforcement requirements.
Sec. 2109. Committee staff.
Sec. 2110. Conforming amendments.
Sec. 2111. Definitions.

                DIVISION C--ANDEAN TRADE PREFERENCE ACT

                  TITLE XXXI--ANDEAN TRADE PREFERENCE

Sec. 3101. Short title.
Sec. 3102. Findings.
Sec. 3103. Articles eligible for preferential treatment.
Sec. 3104. Termination of preferential treatment.
Sec. 3105. Trade benefits under the Caribbean Basin Economic Recovery 
                            act.
Sec. 3106. Trade benefits under the African Growth and Opportunity Act.

DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER 
                               PROVISIONS

Sec. 4101. Extension of generalized system of preferences.
Sec. 4102. Fund for WTO dispute settlements.
Sec. 4103. Payment of duties and fees.

                DIVISION A--TRADE ADJUSTMENT ASSISTANCE

SEC. 101. SHORT TITLE.

    This division may be cited as the ``Trade Adjustment Assistance 
Reform Act of 2002''.

              TITLE I--TRADE ADJUSTMENT ASSISTANCE PROGRAM

SEC. 111. REAUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM.

    (a) Assistance for Workers.--Section 245 of the Trade Act of 1974 
(19 U.S.C. 2317) is amended by striking ``October 1, 1998, and ending 
September 30, 2001,'' each place it appears and inserting ``October 1, 
2001, and ending September 30, 2004,''.
    (b) Assistance for Firms.--Section 256(b) of the Trade Act of 1974 
(19 U.S.C. 2346(b)) is amended by striking ``October 1, 1998, and 
ending September 30, 2001'' and inserting ``October 1, 2001, and ending 
September 30, 2004,''.
    (c) Termination.--Section 285(c) of the Trade Act of 1974 (19 
U.S.C. 2271 note) is amended in paragraphs (1) and (2)(A) by striking 
``September 30, 2001'' and inserting ``September 30, 2004''.
    (d) Training Limitation Under NAFTA Program.--Section 250(d)(2) of 
the Trade Act of 1974 (19 U.S.C. 2331(d)(2)) is amended by striking 
``October 1, 1998, and ending September 30, 2001'' and inserting 
``October 1, 2001, and ending September 30, 2004''.

SEC. 112. FILING OF PETITIONS AND PROVISION OF RAPID RESPONSE 
              ASSISTANCE; EXPEDITED REVIEW OF PETITIONS BY SECRETARY OF 
              LABOR.

    (a) Filing of Petitions and Provision of Rapid Response 
Assistance.--Section 221(a) of the Trade Act of 1974 (19 U.S.C. 
2271(a)) is amended to read as follows:
    ``(a)(1) A petition for certification of eligibility to apply for 
adjustment assistance for a group of workers under this chapter may be 
filed with the Governor of the State in which such workers' firm or 
subdivision is located by any of the following:
            ``(A) The group of workers (including workers in an 
        agricultural firm or subdivision of any agricultural firm).
            ``(B) The certified or recognized union or other duly 
        authorized representative of such workers.
            ``(C) Employers of such workers, one-stop operators or one-
        stop partners (as defined in section 101 of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2801)), including State 
        employment security agencies, or the State dislocated worker 
        unit established under title I of such Act, on behalf of such 
        workers.
    ``(2) Upon receipt of a petition filed under paragraph (1), the 
Governor shall--
            ``(A) immediately transmit the petition to the Secretary of 
        Labor (hereinafter in this chapter referred to as the 
        `Secretary');
            ``(B) ensure that rapid response assistance, and 
        appropriate core and intensive services (as described section 
        134 of the Workforce Investment Act of 1998 (29 U.S.C. 2864)) 
        authorized under other Federal laws are made available to the 
        workers covered by the petition to the extent authorized under 
        such laws; and
            ``(C) assist the Secretary in the review of the petition by 
        verifying such information and providing such other assistance 
        as the Secretary may request.
    ``(3) Upon receipt of the petition, the Secretary shall promptly 
publish notice in the Federal Register that the Secretary has received 
the petition and initiated an investigation.''.
    (b) Expedited Review of Petitions by Secretary of Labor.--Section 
223(a) of such Act (19 U.S.C. 2273(a)) is amended in the first sentence 
by striking ``60 days'' and inserting ``40 days''.

SEC. 113. GROUP ELIGIBILITY REQUIREMENTS.

    (a) Trade Adjustment Assistance Program.--
            (1) In general.--Section 222 of the Trade Act of 1974 (19 
        U.S.C. 2272) is amended--
                    (A) by redesignating subsection (b) as subsection 
                (c); and
                    (B) by inserting after subsection (a) the 
                following:
    ``(b)(1) A group of workers (including workers in any agricultural 
firm or subdivision of an agricultural firm) shall be certified by the 
Secretary as eligible to apply for adjustment assistance benefits under 
this subchapter if, subject to paragraph (2), the Secretary determines 
that--
            ``(A) a significant number or proportion of the workers in 
        the workers' firm or an appropriate subdivision of the firm 
        have become totally or partially separated, or are threatened 
        to become totally or partially separated;
            ``(B) the workers' firm (or subdivision) is a supplier to a 
        firm (or subdivision) that employed workers covered by a 
        certification of eligibility under subsection (a), the 
        component parts provided to the firm by the supplier is a 
        direct component of the article that is the basis for the 
        certification of eligibility under subsection (a), and either 
        the component parts have a dedicated usage for the firm and the 
        supplier does not have another reasonably available purchaser, 
        or the component parts add at least 25 percent of the value to 
        the article involved; and
            ``(C) a loss of business with the firm (or subdivision) 
        covered by the certification of eligibility under subsection 
        (a) contributed importantly to the workers' separation or 
        threat of separation determined under subparagraph (A).
    ``(2) A group of workers shall be eligible for certification by the 
Secretary under paragraph (1) if the petition for certification is 
filed with the Secretary not later than 6 months after the date on 
which the Secretary certifies the group of workers in the firm (or 
subdivision of the firm) under subsection (a) with respect to which the 
firm involved is a supplier.''.
            (2) Definitions.--Section 222(c) of such Act, as 
        redesignated by paragraph (1)(A), is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (a)(3)'' and inserting ``this 
                section''; and
                    (B) by adding at the end the following:
            ``(3) The term `supplier' means a firm that produces 
        component parts for articles produced by a firm (or 
        subdivision) that employed a group of workers covered by a 
        certification of eligibility under subsection (a) and with 
        respect to which the production of such component parts 
        constitutes not less than 50 percent of the total operations or 
        production of the firm.''.
    (b) NAFTA Transitional Adjustment Assistance Program.--
            (1) In general.--Section 250(a) of the Trade Act of 1974 
        (19 U.S.C. 2331(a)) is amended--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Criteria for adversely affected secondary workers.--
        (A) A group of workers (including workers in any agricultural 
        firm or subdivision of an agricultural firm) shall be certified 
        by the Secretary as eligible to apply for adjustment assistance 
        benefits under this subchapter if, subject to subparagraph (B), 
        the Secretary determines that--
                    ``(i) a significant number or proportion of the 
                workers in the workers' firm or an appropriate 
                subdivision of the firm have become totally or 
                partially separated, or are threatened to become 
                totally or partially separated;
                    ``(ii) the workers' firm (or subdivision) is a 
                supplier to a firm (or subdivision) that employed 
                workers covered by a certification of eligibility under 
                paragraph (1), the component parts provided to the firm 
                by the supplier is a direct component of the article 
                that is the basis for the certification of eligibility 
                under subsection (a), and either the component parts 
                have a dedicated usage for the firm and the supplier 
                does not have another reasonably available purchaser, 
                or the component parts add at least 25 percent of the 
                value to the article involved; and
                    ``(iii) a loss of business with the firm (or 
                subdivision) covered by the certification of 
                eligibility under paragraph (1) contributed importantly 
                to the workers' separation or threat of separation 
                determined under clause (i).
            ``(B) A group of workers shall be eligible for 
        certification by the Secretary under subparagraph (A) if the 
        petition for certification is filed with the Secretary not 
        later than 6 months after the date on which the Secretary 
        certifies the group of workers in the firm (or subdivision of 
        the firm) under paragraph (1) with respect to which the firm 
        involved is a supplier.''.
            (2) Definitions.--Section 250(a)(3) of such Act, as 
        redesignated by paragraph (1)(A), is amended to read as 
        follows:
            ``(3) Definitions.--In this section:
                    ``(A) The term `contributed importantly' means a 
                cause which is important but not necessarily more 
                important than any other cause.
                    ``(B) The term `supplier' means a firm that 
                produces component parts for articles produced by a 
                firm (or subdivision) covered by a certification of 
                eligibility under paragraph (1) and with respect to 
                which the production of such component parts 
                constitutes not less than 50 percent of the total 
                operations or production of the firm.''.
            (3) Regulations.--Section 250(a)(4) of such Act, as 
        redesignated by paragraph (1)(A), is amended by striking 
        ``paragraph (1)'' and inserting ``paragraphs (1) and (2)''.

SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT ALLOWANCES.

    (a) Clarification of Certain Reductions.--(1) Section 231(a)(3)(B) 
of the Trade Act of 1974 (19 U.S.C. 2291(a)(3)(B)) is amended by 
inserting after ``any unemployment insurance'' the following: ``, 
except additional compensation that is funded by a State and is not 
reimbursed from any Federal funds,''.
    (2) Section 233(a)(1) of the Trade Act of 1974 (19 U.S.C. 
2293(a)(1)) is amended by inserting after ``any unemployment 
insurance'' the following: ``, except additional compensation that is 
funded by a State and is not reimbursed from any Federal funds,''.
    (b) Enrollment in Training Requirement.--Section 231(a)(5)(A) of 
such Act (19 U.S.C. 2291(a)(5)(A)) is amended--
            (1) by inserting ``(i)'' after ``(A)'';
            (2) by adding ``and'' after the comma at the end; and
            (3) by adding at the end the following:
                    ``(ii) the enrollment required under clause (i) 
                occurs no later than the latest of--
                            ``(I) the last day of the 13th week after 
                        the worker's most recent total separation from 
                        adversely affected employment which meets the 
                        requirements of paragraphs (1) and (2);
                            ``(II) the last day of the 8th week after 
                        the week in which the Secretary issues a 
                        certification covering the worker;
                            ``(III) 45 days after the later of the 
                        dates specified in subclause (I) or (II), if 
                        the Secretary determines there are extenuating 
                        circumstances that justify an extension in the 
                        enrollment period; or
                            ``(IV) the last day of a period determined 
                        by the Secretary to be approved for enrollment 
                        after the termination of a waiver issued 
                        pursuant to subsection (c).''.-

SEC. 115. WAIVERS OF TRAINING REQUIREMENTS.

    (a) In General.--Section 231(c) of the Trade Act of 1974 (19 U.S.C. 
2291(c)) is amended to read as follows:
    ``(c)(1) The Secretary may issue a written statement to a worker 
waiving the enrollment in the training requirement described in 
subsection (a)(5)(A) if the Secretary determines that such training 
requirement is not feasible or appropriate for the worker, as indicated 
by 1 or more of the following:
            ``(A) The worker has been provided a written notice that 
        the worker will be recalled by the firm from which the 
        qualifying separation occurred and that such recall will occur 
        within 6 months of the qualifying separation.
            ``(B) The worker is within 2 years of meeting all 
        requirements for entitlement to old-age insurance benefits 
        under title II of the Social Security Act (42 U.S.C. 401 et 
        seq.) (except for application therefore) as of the date of the 
        most recent separation of the worker that meets the 
        requirements of subsection (a)(1) and (2).
            ``(C) The worker is unable to participate in training due 
        to the health of the worker, except that a waiver under this 
        subparagraph shall not be construed to exempt a worker from 
        requirements relating to the availability for work, active 
        search for work, or refusal to accept work under Federal or 
        State unemployment compensation laws.
            ``(D) The first available enrollment date for the approved 
        training of the worker is within 45 days after the date of the 
        determination made under this paragraph, or, if later, there 
        are extenuating circumstances for the delay in enrollment, as 
        determined pursuant to guidelines issued by the Secretary.
            ``(E) There are insufficient funds available for training 
        under this chapter, and funds are not available for the 
        approved training under other Federal law.
    ``(2) The Secretary shall specify the duration of the waiver under 
paragraph (1)-and shall periodically review the waiver to determine 
whether the basis for issuing the waiver remains applicable. If at any 
time the Secretary determines such basis is no longer applicable to the 
worker, the Secretary shall revoke the waiver.
    ``(3) Pursuant to the agreement under section 239, the Secretary 
may authorize a cooperating State or State agency to carry out 
activities described in paragraph (1) (except for the determination 
under subparagraph (E) of paragraph (1)). Such agreement shall include 
a requirement that the State or State agency maintain and make 
available to the Secretary the written statements provided pursuant to 
paragraph (1) and a statement of the reasons for the waiver.
    ``(4) The Secretary shall collect and maintain information 
identifying the number of workers who received waivers and the average 
duration of such waivers issued under this subsection during the 
preceding year.''.
    (b) Conforming Amendment.--Section 231(a)(5)(C) of such Act (19 
U.S.C. 2291(a)(5)(C)) is amended by striking ``certified''.

SEC. 116. AMENDMENTS TO LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.

    (a) Increase in Maximum Number of Weeks.--Section 233(a) of the 
Trade Act of 1974 (19 U.S.C. 2293(a)) is amended--
            (1) in paragraph (2), by inserting after ``104-week 
        period'' the following: ``(or, in the case of an adversely 
        affected worker who requires a program of remedial education 
        (as described in section 236(a)(5)(D)) in order to complete 
        training approved for the worker under section 236, the 130-
        week period)''; and
            (2) in paragraph (3), by striking ``26'' each place it 
        appears and inserting ``52''.
    (b) Special Rule Relating to Break in Training.--Section 233(f) of 
the Trade Act of 1974 (19 U.S.C. 2293(f)) is amended in the matter 
preceding paragraph (1) by striking ``14 days'' and inserting ``30 
days''.
    (c) Additional Weeks for Individuals in Need of Remedial 
Education.--Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is 
amended by adding at the end the following:
    ``(g) Notwithstanding any other provision of this section, in order 
to assist an adversely affected worker to complete training approved 
for the worker under section 236 which includes a program of remedial 
education (as described in section 236(a)(5)(D)), and in accordance 
with regulations prescribed by the Secretary, payments may be made as 
trade readjustment allowances for up to 26 additional weeks in the 26-
week period that follows the last week of entitlement to trade 
readjustment allowances otherwise payable under this chapter.''.

SEC. 117. ANNUAL TOTAL AMOUNT OF PAYMENTS FOR TRAINING.

    Section 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C. 
2296(a)(2)(A)) is amended by striking ``$80,000,000'' and all that 
follows through ``$70,000,000'' and inserting ``$110,000,000''.

SEC. 118. AUTHORITY OF STATES WITH RESPECT TO COSTS OF APPROVED 
              TRAINING AND SUPPLEMENTAL ASSISTANCE.

    (a) Costs of Approved Training.--Section 236(a) of the Trade Act of 
1974 (19 U.S.C. 2296(a)) is amended by adding at the end the following 
new paragraph:
    ``(10) For purposes of carrying out paragraph (1)(F), the Secretary 
shall authorize any cooperating State or State agency to establish, 
pursuant to guidelines issued by the Secretary, a uniform limit on the 
cost of training to be paid from funds provided under this chapter that 
may be approved by such State for an adversely affected worker under 
this section.''.
    (b) Supplemental Assistance.--Section 236(b) of such Act (19 U.S.C. 
2296(b)) is amended by inserting the following sentence after the first 
sentence: ``The Secretary shall authorize any cooperating State or 
State agency to take into account the cost of the training approved for 
an adversely affected worker under subsection (a) in determining the 
appropriate amount of supplemental assistance to be provided to such 
worker under this subsection.''.

SEC. 119. PROVISION OF EMPLOYER-BASED TRAINING.

    (a) In General.--Section 236(a)(5)(A) of the Trade Act of 1974 (19 
U.S.C. 2296(a)(5)(A)) is amended to read as follows:
            ``(A) employer-based training, including--
                    ``(i) on-the-job training, and
                    ``(ii) customized training,''.
    (b) Reimbursement.--Section 236(c)(8) of such Act (19 U.S.C. 
2296(c)(8)) is amended to read as follows:
            ``(8) the employer is provided reimbursement of not more 
        than 50 percent of the wage rate of the participant, for the 
        cost of providing the training and additional supervision 
        related to the training,''. -
    (c) Definition.--Section 236 of such Act (19 U.S.C. 2296) is 
amended by adding the following new subsection:
    ``(f) For purposes of this section, the term `customized training' 
means training that is--
            ``(1) designed to meet the special requirements of an 
        employer or group of employers;
            ``(2) conducted with a commitment by the employer or group 
        of employers to employ an individual upon successful completion 
        of the training; and
            ``(3) for which the employer pays for a significant portion 
        (but in no case less than 50 percent) of the cost of such 
        training, as determined by the Secretary.''.

SEC. 120. COORDINATION WITH TITLE I OF THE WORKFORCE INVESTMENT ACT OF 
              1998.

    (a) Coordination With One-Stop Delivery Systems in the Provision of 
Employment Services.--Section 235 of the Trade Act of 1974 (19 U.S.C. 
2295) is amended by inserting before the period at the end of the first 
sentence the following: ``, including the services provided through 
one-stop delivery systems described in section 134(c) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2864(c))''.
    (b) Coordination With Title I of the Workforce Investment Act of 
1998.--
            (1) In general.--Section 239(e) of such Act (19 U.S.C. 
        2311(e)) is amended to read as follows:
    ``(e) Any agreement entered into under this section shall provide 
for the coordination of the administration of the provisions for 
employment services, training, and supplemental assistance under 
sections 235 and 236 of this chapter with provisions relating to 
dislocated worker employment and training activities (including 
supportive services) under chapter 5 of subtitle B of title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2861 et seq.) upon such 
terms and conditions, as established by the Secretary after 
consultation with the States, that are consistent with this section. 
Such terms and conditions shall, at a minimum, include requirements 
that--
            ``(1) adversely affected workers applying for assistance 
        under this chapter be co-enrolled in the dislocated worker 
        program authorized under chapter 5 of subtitle B of title I of 
        the Workforce Investment Act of 1998;
            ``(2) training under section 236 shall be provided in 
        accordance with the provisions relating to consumer choice 
        requirements and the use of individual training accounts under 
        subparagraphs (F) and (G) of section 134(d)(4) of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2864(d)(4)(F) and (G)), 
        including--
                    ``(A) the requirement that only providers eligible 
                under section 122 of the Workforce Investment Act of 
                1998 (29 U.S.C. 2842) shall be eligible to provide 
                training; and
                    ``(B) that the exceptions to the use of individual 
                training accounts described in section 134(d)(4)(G)(ii) 
                of such Act (29 U.S.C. 2864(d)(4)(G)(ii)) shall be 
                applicable; and
            ``(3) common reporting systems and elements, including 
        common elements relating to participant and performance data, 
        shall be used by the program authorized under this chapter and 
        the dislocated worker program authorized under chapter 5 of 
        subtitle B of title I of such Act.''.
            (2) Additional requirement.--Section 239(g) of such Act (19 
        U.S.C. 2311(g)) is amended--
                    (A) by inserting ``(1)'' after ``(g)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The agreement under this section shall also provide that the 
cooperating State agency shall be a one-stop partner as described in 
subparagraphs (A) and (B)(viii) of section 121(b)(1) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2841(b)(1)(A) and (B)(viii)) in the 
one-stop delivery system established under section 134(c) of such Act 
(29 U.S.C. 2864(c)) for the appropriate local workforce investment 
areas, and shall carry out the responsibilities relating to such 
partners.''.
            (3) Conforming amendments.--Section 236(a)(1) of such Act 
        (19 U.S.C. 2296(a)(1)) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, pursuant to an interview, evaluation, 
                assessment, or case management of the worker,'' after 
                ``Secretary determines''; and
                    (B) in the second sentence of such paragraph, by 
                striking ``, directly or through a voucher system'' and 
                inserting ``through individual training accounts 
                pursuant to the agreement under section 239(e)(2)''. -

SEC. 121. EXPENDITURE PERIOD.

    Section 245 of the Trade Act of 1974 (19 U.S.C. 2317), as amended 
by section 111(a) of this Act, is further amended--
            (1) by striking ``There are authorized'' and inserting 
        ``(a) In General.--There are authorized''; and
            (2) by adding at the end the following subsection:
    ``(b) Period of Expenditure.--Funds obligated for any fiscal year 
to carry out activities under sections 235 through 238 may be expended 
by each State receiving such funds during that fiscal year and the 
succeeding two fiscal years.''.

SEC. 122. DECLARATION OF POLICY; SENSE OF CONGRESS.

    (a) Declaration of Policy.--Congress reiterates that, under the 
trade adjustment assistance program under chapter 2 of title II of the 
Trade Act of 1974, workers are eligible for transportation, childcare, 
and healthcare assistance, as well as other related assistance under 
programs administered by the Department of Labor.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Labor, working independently and in conjunction with the 
States, should, in accordance with section 225 of the Trade Act of 
1974, provide more specific information about benefit allowances, 
training, and other employment services, and the petition and 
application procedures (including appropriate filing dates) for such 
allowances, training, and services, under the trade adjustment 
assistance program under chapter 2 of title II of the Trade Act of 1974 
to workers who are applying for, or are certified to receive, 
assistance under that program, including information on all other 
Federal assistance available to such workers.

  TITLE II--CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS

SEC. 201. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS RECEIVING A 
              TRADE READJUSTMENT ALLOWANCE OR A BENEFIT FROM THE 
              PENSION BENEFIT GUARANTY CORPORATION.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and inserting 
after section 34 the following new section:

``SEC. 35. HEALTH INSURANCE COSTS OF ELIGIBLE INDIVIDUALS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by subtitle A an amount 
equal to 60 percent of the amount paid by the taxpayer for coverage of 
the taxpayer and qualifying family members under qualified health 
insurance for eligible coverage months beginning in the taxable year.
    ``(b) Limitation Based on Modified Adjusted Gross Income.--For 
purposes of this section--
            ``(1) In general.--Except as provided in paragraph (2), if 
        the modified adjusted gross income of the taxpayer for the 
        taxable year exceeds $20,000, the amount which would (but for 
        this subsection and subsection (h)(1)) be allowed as a credit 
        under subsection (a) shall be reduced (but not below zero) by 
        the amount which bears the same ratio to the amount which would 
        be so allowed as such excess bears to $20,000.
            ``(2) Family coverage.--
                    ``(A) Separate application of limitation.--
                Paragraph (1) shall be applied separately with respect 
                to--
                            ``(i) amounts paid for eligible coverage 
                        months as of the first day of which one or more 
                        qualifying family members are covered by the 
                        qualified health insurance covering the 
                        taxpayer, and
                            ``(ii) amounts paid for other eligible 
                        coverage months.
                    ``(B) Limitation amount.--With respect to amounts 
                described in subparagraph (A)(i), paragraph (1) shall 
                be applied by substituting `$40,000' for `$20,000' each 
                place it appears.
            ``(3) Modified adjusted gross income.--The term `modified 
        adjusted gross income' means adjusted gross income determined 
        without regard to sections 911, 931, and 933.
    ``(c) Eligible Coverage Month.--For purposes of this section--
            ``(1) In general.--The term `eligible coverage month' means 
        any month if--
                    ``(A) as of the first day of such month, the 
                taxpayer--
                            ``(i) is an eligible individual,
                            ``(ii) is covered by qualified health 
                        insurance, the premium for which is paid by the 
                        taxpayer, and
                            ``(iii) does not have other specified 
                        coverage,
                    ``(B) such month begins more than 90 days after the 
                date of the enactment of the Trade Act of 2002, and
                    ``(C) in the case of any eligible TAA recipient, 
                such month is designated under paragraph (2).
            ``(2) Designation of eligible coverage months.--Any 
        eligible TAA recipient may designate, with respect to any 
        period of 36 months, not more than 12 months of such period as 
        eligible coverage months.
            ``(3) Joint returns.--In the case of a joint return, the 
        requirements of paragraph (1)(A) shall be treated as met with 
        respect to any month if at least 1 spouse satisfies such 
        requirements.
    ``(d) Eligible Individual.--For purposes of this section--
            ``(1) In general.--The term `eligible individual' means--
                    ``(A) an eligible TAA recipient, or
                    ``(B) an eligible PBGC pension recipient.
            ``(2) Eligible taa recipient.--The term `eligible TAA 
        recipient' means, with respect to any month, any individual--
                    ``(A) who is receiving for any day of such month a 
                trade readjustment allowance under part I of subchapter 
                B, or subchapter D, of chapter 2 of title II of the 
                Trade Act of 1974 (19 U.S.C. 2291 et seq. or 2331 et 
                seq.) or who would be eligible to receive such 
                allowance if section 231 of such Act (19 U.S.C. 2291) 
                were applied without regard to subsection (a)(3)(B) of 
                such section, and
                    ``(B) who, with respect to such allowance, is 
                covered under a certification issued--
                            ``(i) under subchapter A or D of chapter 2 
                        of title II of the Trade Act of 1974 (19 U.S.C. 
                        2271 et seq. or 2331 et seq.), and
                            ``(ii) after the date which is 90 days 
                        after the date of the enactment of the Trade 
                        Act of 2002.
        An individual shall continue to be treated as an eligible TAA 
        recipient during the first month that such individual would 
        otherwise cease to be an eligible TAA recipient.
            ``(3) Eligible pbgc pension recipient.--The term `eligible 
        PBGC pension recipient' means, with respect to any month, any 
        individual who--
                    ``(A) has attained age 55 as of the first day of 
                such month, and
                    ``(B) is receiving a benefit for such month any 
                portion of which is paid by the Pension Benefit 
                Guaranty Corporation under title IV of the Employee 
                Retirement Income Security Act of 1974.
    ``(e) Qualifying Family Member.--For purposes of this section--
            ``(1) In general.--The term `qualifying family member' 
        means--
                    ``(A) the taxpayer's spouse, and
                    ``(B) any dependent of the taxpayer with respect to 
                whom the taxpayer is entitled to a deduction under 
                section 151(c).
        Such term does not include any individual who has other 
        specified coverage.
            ``(2) Special dependency test in case of divorced parents, 
        etc.--If paragraph (2) or (4) of section 152(e) applies to any 
        child with respect to any calendar year, in the case of any 
        taxable year beginning in such calendar year, such child shall 
        be treated as described in paragraph (1)(B) with respect to the 
        custodial parent (within the meaning of section 152(e)(1)) and 
        not with respect to the noncustodial parent.
    ``(f) Qualified Health Insurance.--For purposes of this section, 
the term `qualified health insurance' means insurance which constitutes 
medical care; except that such term shall not include any insurance if 
substantially all of its coverage is of excepted benefits described in 
section 9832(c).
    ``(g) Other Specified Coverage.--
            ``(1) In general.--For purposes of this section, an 
        individual has other specified coverage for any month if, as of 
        the first day of such month--
                    ``(A) Subsidized coverage.--Such individual is 
                covered under any qualified health insurance under any 
                health plan maintained by any employer (or former 
                employer) of the taxpayer or the taxpayer's spouse and 
                at least 50 percent of the cost of such coverage 
                (determined under section 4980B) is paid or incurred by 
                the employer.
                    ``(B) Coverage under medicare, medicaid, or 
                schip.--Such individual--
                            ``(i) is entitled to benefits under part A 
                        of title XVIII of the Social Security Act or is 
                        enrolled under part B of such title, or
                            ``(ii) is enrolled in the program under 
                        title XIX or XXI of such Act.
                    ``(C) Certain other coverage.--Such individual--
                            ``(i) is enrolled in a health benefits plan 
                        under chapter 89 of title 5, United States 
                        Code, or
                            ``(ii) is entitled to receive benefits 
                        under chapter 55 of title 10, United States 
                        Code.
            ``(2) Special rules related to subsidized coverage.--
                    ``(A) Employer contributions to cafeteria plans, 
                flexible spending arrangements, and medical savings 
                accounts.--Employer contributions to a cafeteria plan 
                (as defined in section 125(d)), a flexible spending or 
                similar arrangement, or a medical savings account which 
                are excluded from gross income under section 106 shall 
                be treated for purposes of paragraph (1)(A) as paid by 
                the employer.
                    ``(B) Aggregation of plans of employer.--A health 
                plan which is not otherwise described in paragraph 
                (1)(A) shall be treated as described in such paragraph 
                if such plan would be so described if all health plans 
                of persons treated as a single employer under 
                subsection (b), (c), (m), or (o) of section 414 were 
                treated as one health plan.
            ``(3) Immunizations not treated as medicaid coverage.--For 
        purposes of paragraph (1)(B), an individual shall not be 
        treated as enrolled in the program under title XIX of the 
        Social Security Act solely on the basis of receiving a benefit 
        under section 1928 of such Act.
    ``(h) Special Rules.--
            ``(1) Coordination with advance payments of credit.--With 
        respect to any taxable year, the amount which would (but for 
        this subsection) be allowed as a credit to the taxpayer under 
        subsection (a) shall be reduced (but not below zero) by the 
        aggregate amount paid on behalf of such taxpayer under section 
        7527 for months beginning in such taxable year.
            ``(2) Coordination with other deductions.--Amounts taken 
        into account under subsection (a) shall not be taken into 
        account in determining any deduction allowed under section 
        162(l) or 213.
            ``(3) MSA distributions.--Amounts distributed from an 
        Archer MSA (as defined in section 220(d)) shall not be taken 
        into account under subsection (a).
            ``(4) Denial of credit to dependents.--No credit shall be 
        allowed under this section to any individual with respect to 
        whom a deduction under section 151 is allowable to another 
        taxpayer for a taxable year beginning in the calendar year in 
        which such individual's taxable year begins.
            ``(5) Married couples must file joint return.--If the 
        taxpayer is married at the close of the taxable year, the 
        credit shall be allowed under subsection (a) only if the 
        taxpayer and his spouse file a joint return for the taxable 
        year.
            ``(6) Marital status; certain married individuals living 
        apart.--Rules similar to the rules of paragraphs (3) and (4) of 
        section 21(e) shall apply for purposes of this section.
            ``(7) Insurance which covers other individuals.--For 
        purposes of this section, rules similar to the rules of section 
        213(d)(6) shall apply with respect to any contract for 
        qualified health insurance under which amounts are payable for 
        coverage of an individual other than the taxpayer and 
        qualifying family members.
            ``(8) Treatment of payments.--For purposes of this 
        section--
                    ``(A) Payments by secretary.--Payments made by the 
                Secretary on behalf of any individual under section 
                7527 (relating to advance payment of credit for health 
                insurance costs of eligible TAA recipients) shall be 
                treated as having been made by the taxpayer on the 
                first day of the month for which such payment was made.
                    ``(B) Payments by taxpayer.--Payments made by the 
                taxpayer for eligible coverage months shall be treated 
                as having been made by the taxpayer on the first day of 
                the month for which such payment was made.
            ``(9) Regulations.--The Secretary may prescribe such 
        regulations and other guidance as may be necessary or 
        appropriate to carry out this section, section 6050T, and 
        section 7527.''.
    (b) Increased Access to Health Insurance for Individuals Eligible 
for Tax Credit Through Use of Guaranteed Issue, Qualified High Risk 
Pools, and Other Appropriate State Mechanisms.--
            (1) In general.--Notwithstanding any other provision of 
        law, in applying section 2741 of the Public Health Service Act 
        (42 U.S.C. 300gg-41)) and any alternative State mechanism under 
        section 2744 of such Act (42 U.S.C.300gg-44)), in determining 
        who is an eligible individual (as defined in section 2741(b) of 
        such Act) in the case of an individual who may be covered by 
        insurance for which credit is allowable under section 35 of the 
        Internal Revenue Code of 1986 for an eligible coverage month, 
        if the individual seeks to obtain health insurance coverage 
        under such section during an eligible coverage month under such 
        section--
                    (A) paragraph (1) of such section 2741(b) shall be 
                applied as if any reference to 18 months is deemed a 
                reference to 12 months, and
                    (B) paragraphs (4) and (5) of such section 2741(b) 
                shall not apply.
            (2) Promotion of state high risk pools.--Title XXVII of the 
        Public Health Service Act is amended by inserting after section 
        2744 the following new section:

``SEC. 2745. PROMOTION OF QUALIFIED HIGH RISK POOLS.

    ``(a) Seed Grants to States.--The Secretary shall provide from the 
funds appropriated under subsection (c)(1) a grant of up to $1,000,000 
to each State that has not created a qualified high risk pool as of the 
date of the enactment of this section for the State's costs of creation 
and initial operation of such a pool.
    ``(b) Matching Funds for Operation of Pools.--
            ``(1) In general.--In the case of a State that has 
        established a qualified high risk pool that--
                    ``(A) restricts premiums charged under the pool to 
                no more than 150 percent of the premium for applicable 
                standard risk rates;
                    ``(B) that offers a choice of two or more coverage 
                options through the pool; and
                    ``(C) has in effect a mechanism reasonably designed 
                to ensure continued funding of losses incurred by the 
                State after the end of fiscal year 2004 in connection 
                with operation of the pool;
        the Secretary shall provide, from the funds appropriated under 
        subsection (c)(2) and allotted to the State under paragraph 
        (2), a grant of up to 50 percent of the losses incurred by the 
        State in connection with the operation of the pool.
            ``(2) Allotment.--The amounts appropriated under subsection 
        (c)(2) for a fiscal year shall be made available to the States 
        in accordance with a formula that is based upon the number of 
        uninsured individuals in the States.
            ``(3) Construction.--Nothing in this subsection shall be 
        construed as preventing a State from supplementing the funds 
        made available under this subsection for the support and 
        operation of qualified high risk pools.
    ``(c) Funding.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated--
            ``(1) $20,000,000 for fiscal year 2003 to carry out 
        subsection (a); and
            ``(2) $40,000,000 for each of fiscal years 2003 and 2004.
Funds appropriated under this subsection for a fiscal year shall remain 
available for obligation through the end of the following fiscal year. 
Nothing in this section shall be construed as providing a State with an 
entitlement to a grant under this section.
    ``(d) Qualified High Risk Pool and State Defined.--For purposes of 
this section, the term `qualified high risk pool' has the meaning given 
such term in section 2744(c)(2) and the term `State' means any of the 
50 States and the District of Columbia.''.
            (3) Construction.--Nothing in this subsection shall be 
        construed as affecting the ability of a State to use 
        mechanisms, described in sections 2741(c) and 2744 of the 
        Public Health Service Act, as an alternative to applying the 
        guaranteed availability provisions of section 2741(a) of such 
        Act.
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 35 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        striking the last item and inserting the following new items:

                              ``Sec. 35. Health insurance costs of 
                                        eligible individuals.
                              ``Sec. 36. Overpayments of tax.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

SEC. 202. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF 
              ELIGIBLE INDIVIDUALS.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
the following new section:

``SEC. 7527. ADVANCE PAYMENT OF CREDIT FOR HEALTH INSURANCE COSTS OF 
              ELIGIBLE INDIVIDUALS.

    ``(a) General Rule.--Not later than July 1, 2003, the Secretary 
shall establish a program for making payments on behalf of certified 
individuals to providers of qualified health insurance (as defined in 
section 35(f)) for such individuals.
    ``(b) Limitation on Advance Payments During any Taxable Year.--
            ``(1) In general.--The Secretary may make payments under 
        subsection (a) only to the extent that the total amount of such 
        payments made on behalf of any individual during the taxable 
        year does not exceed such individual's advance payment 
        limitation amount for such year.
            ``(2) Advance payment limitation amount.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), with respect to any certified 
                individual, the advance payment limitation amount for 
                any taxable year shall be an amount equal to the amount 
                that such individual would be allowed as a credit under 
                section 35 for such taxable year if such individual's 
                modified adjusted gross income (as defined in section 
                35(b)(3)) for such taxable year were an amount equal to 
                the amount of such individual's modified adjusted gross 
                income shown on the return for the prior taxable year.
                    ``(B) Substitute amount.--For purposes of this 
                section, the Secretary may substitute an amount for an 
                individual's advance payment limitation amount for any 
                taxable year if the Secretary determines that such 
                substitute amount more accurately reflects such 
                individual's modified adjusted gross income for such 
                taxable year.
    ``(c) Certified Individual.--For purposes of this section, the term 
`certified individual' means any individual for whom a qualified health 
insurance costs credit eligibility certificate is in effect.
    ``(d) Qualified Health Insurance Costs Credit Eligibility 
Certificate.--For purposes of this section, a qualified health 
insurance costs credit eligibility certificate is a statement certified 
by the Secretary of Labor or the Pension Benefit Guaranty Corporation 
(or by any other person or entity designated by the Secretary) which--
            ``(1) certifies that the individual was an eligible 
        individual (within the meaning of section 35(d)) as of the 
        first day of any month, and
            ``(2) provides such other information as the Secretary may 
        require for purposes of this section.''.
    (b) Disclosure of Return Information for Purposes of Carrying out a 
Program for Advance Payment of Credit for Health Insurance Costs of 
Eligible Individuals.--
            (1) In general.--Subsection (l) of section 6103 of such 
        Code (relating to disclosure of returns and return information 
        for purposes other than tax administration) is amended by 
        adding at the end the following new paragraph:
            ``(18) Disclosure of return information for purposes of 
        carrying out a program for advance payment of credit for health 
        insurance costs of eligible individuals.--The Secretary may 
        disclose to providers of health insurance for any certified 
        individual (as defined in section 7527(c)) return information 
        with respect to such certified individual only to the extent 
        necessary to carry out the program established by section 7527 
        (relating to advance payment of health insurance cost 
        credit).''.
            (2) Procedures and recordkeeping related to disclosures.--
        Subsection (p) of such section is amended--
                    (A) in paragraph (3)(A) by striking ``or (17)'' and 
                inserting ``(17), or (18)'', and
                    (B) in paragraph (4) by inserting ``or (17)'' after 
                ``any other person described in subsection (l)(16)'' 
                each place it appears.
            (3) Unauthorized inspection of returns or return 
        information.--Section 7213A(a)(1)(B) of such Code is amended by 
        striking ``section 6103(n)'' and inserting ``subsection (l)(18) 
        or (n) of section 6103''.
    (c) Information Reporting.--
            (1) In general.--Subpart B of part III of subchapter A of 
        chapter 61 of the Internal Revenue Code of 1986 (relating to 
        information concerning transactions with other persons) is 
        amended by inserting after section 6050S the following new 
        section:

``SEC. 6050T. RETURNS RELATING TO CREDIT FOR HEALTH INSURANCE COSTS OF 
              ELIGIBLE INDIVIDUALS.

    ``(a) Requirement of Reporting.--Every person who is entitled to 
receive payments for any month of any calendar year under section 7527 
(relating to advance payment of credit for health insurance costs of 
eligible individuals) with respect to any certified individual (as 
defined in section 7527(c)) shall, at such time as the Secretary may 
prescribe, make the return described in subsection (b) with respect to 
each such individual.
    ``(b) Form and Manner of Returns.--A return is described in this 
subsection if such return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains--
                    ``(A) the name, address, and TIN of each individual 
                referred to in subsection (a),
                    ``(B) the number of months for which amounts were 
                entitled to be received with respect to such individual 
                under section 7527 (relating to advance payment of 
                credit for health insurance costs of eligible 
                individuals),
                    ``(C) the amount entitled to be received for each 
                such month, and
                    ``(D) such other information as the Secretary may 
                prescribe.
    ``(c) Statements To Be Furnished to Individuals With Respect to 
Whom Information Is Required.--Every person required to make a return 
under subsection (a) shall furnish to each individual whose name is 
required to be set forth in such return a written statement showing--
            ``(1) the name and address of the person required to make 
        such return and the phone number of the information contact for 
        such person, and
            ``(2) the information required to be shown on the return 
        with respect to such individual.
The written statement required under the preceding sentence shall be 
furnished on or before January 31 of the year following the calendar 
year for which the return under subsection (a) is required to be 
made.''.
            (2) Assessable penalties.--
                    (A) Subparagraph (B) of section 6724(d)(1) of such 
                Code (relating to definitions) is amended by 
                redesignating clauses (xi) through (xvii) as clauses 
                (xii) through (xviii), respectively, and by inserting 
                after clause (x) the following new clause:
                            ``(xi) section 6050T (relating to returns 
                        relating to credit for health insurance costs 
                        of eligible individuals),''.
                    (B) Paragraph (2) of section 6724(d) of such Code 
                is amended by striking ``or'' at the end of 
                subparagraph (Z), by striking the period at the end of 
                subparagraph (AA) and inserting ``, or'', and by adding 
                after subparagraph (AA) the following new subparagraph:
                    ``(BB) section 6050T (relating to returns relating 
                to credit for health insurance costs of eligible 
                individuals).''.
    (d) Clerical Amendments.--
            (1) Advance payment.--The table of sections for chapter 77 
        of such Code is amended by adding at the end the following new 
        item:

                              ``Sec. 7527. Advance payment of credit 
                                        for health insurance costs of 
                                        eligible individuals.''.
            (2) Information reporting.--The table of sections for 
        subpart B of part III of subchapter A of chapter 61 of such 
        Code is amended by inserting after the item relating to section 
        6050S the following new item:

                              ``Sec. 6050T. Returns relating to credit 
                                        for health insurance costs of 
                                        eligible individuals.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

                   TITLE III--CUSTOMS REAUTHORIZATION

SEC. 301. SHORT TITLE.

    This Act may be cited as the ``Customs Border Security Act of 
2002''.

               Subtitle A--United States Customs Service

  CHAPTER 1--DRUG ENFORCEMENT AND OTHER NONCOMMERCIAL AND COMMERCIAL 
                               OPERATIONS

SEC. 311. AUTHORIZATION OF APPROPRIATIONS FOR NONCOMMERCIAL OPERATIONS, 
              COMMERCIAL OPERATIONS, AND AIR AND MARINE INTERDICTION.

    (a) Noncommercial Operations.--Section 301(b)(1) of the Customs 
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)) 
is amended--
            (1) in subparagraph (A) to read as follows:
                    ``(A) $899,121,000 for fiscal year 2002.'';
            (2) in subparagraph (B) to read as follows:
                    ``(B) $1,365,456,000 for fiscal year 2003.''; and
            (3) by adding at the end the following:
                    ``(C) $1,399,592,400 for fiscal year 2004.''.
    (b) Commercial Operations.--
            (1) In general.--Section 301(b)(2)(A) of the Customs 
        Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
        2075(b)(2)(A)) is amended--
                    (A) in clause (i) to read as follows:
                    ``(i) $1,606,068,000 for fiscal year 2002.'';
                    (B) in clause (ii) to read as follows:
                    ``(ii) $1,642,602,000 for fiscal year 2003.''; and
                    (C) by adding at the end the following:
                    ``(iii) $1,683,667,050 for fiscal year 2004.''.
            (2) Automated commercial environment computer system.--Of 
        the amount made available for each of fiscal years 2002 through 
        2004 under section 301(b)(2)(A) of the Customs Procedural 
        Reform and Simplification Act of 1978 (19 U.S.C. 
        2075(b)(2)(A)), as amended by paragraph (1), $308,000,000 shall 
        be available until expended for each such fiscal year for the 
        development, establishment, and implementation of the Automated 
        Commercial Environment computer system.
            (3) Reports.--Not later than 90 days after the date of the 
        enactment of this Act, and not later than each subsequent 90-
        day period, the Commissioner of Customs shall prepare and 
        submit to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate a 
        report demonstrating that the development and establishment of 
        the Automated Commercial Environment computer system is being 
        carried out in a cost-effective manner and meets the 
        modernization requirements of title VI of the North American 
        Free Trade Agreement Implementation Act.
    (c) Air and Marine Interdiction.--Section 301(b)(3) of the Customs 
Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075(b)(3)) 
is amended--
            (1) in subparagraph (A) to read as follows:
                    ``(A) $177,860,000 for fiscal year 2002.'';
            (2) in subparagraph (B) to read as follows:
                    ``(B) $170,829,000 for fiscal year 2003.''; and
            (3) by adding at the end the following:
                    ``(C) $175,099,725 for fiscal year 2004.''.
    (d) Submission of Out-Year Budget Projections.--Section 301(a) of 
the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
2075(a)) is amended by adding at the end the following:
    ``(3) By not later than the date on which the President submits to 
Congress the budget of the United States Government for a fiscal year, 
the Commissioner of Customs shall submit to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate the projected amount of funds for the succeeding fiscal year 
that will be necessary for the operations of the Customs Service as 
provided for in subsection (b).''.

SEC. 312. ANTITERRORIST AND ILLICIT NARCOTICS DETECTION EQUIPMENT FOR 
              THE UNITED STATES-MEXICO BORDER, UNITED STATES-CANADA 
              BORDER, AND FLORIDA AND THE GULF COAST SEAPORTS.

    (a) Fiscal Year 2002.--Of the amounts made available for fiscal 
year 2002 under section 301(b)(1)(A) of the Customs Procedural Reform 
and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as amended by 
section 311(a) of this Act, $90,244,000 shall be available until 
expended for acquisition and other expenses associated with 
implementation and deployment of antiterrorist and illicit narcotics 
detection equipment along the United States-Mexico border, the United 
States-Canada border, and Florida and the Gulf Coast seaports, as 
follows:
            (1) United states-mexico border.--For the United States-
        Mexico border, the following:
                    (A) $6,000,000 for 8 Vehicle and Container 
                Inspection Systems (VACIS).
                    (B) $11,200,000 for 5 mobile truck x-rays with 
                transmission and backscatter imaging.
                    (C) $13,000,000 for the upgrade of 8 fixed-site 
                truck x-rays from the present energy level of 450,000 
                electron volts to 1,000,000 electron volts (1-MeV).
                    (D) $7,200,000 for 8 1-MeV pallet x-rays.
                    (E) $1,000,000 for 200 portable contraband 
                detectors (busters) to be distributed among ports where 
                the current allocations are inadequate.
                    (F) $600,000 for 50 contraband detection kits to be 
                distributed among all southwest border ports based on 
                traffic volume.
                    (G) $500,000 for 25 ultrasonic container inspection 
                units to be distributed among all ports receiving 
                liquid-filled cargo and to ports with a hazardous 
                material inspection facility.
                    (H) $2,450,000 for 7 automated targeting systems.
                    (I) $360,000 for 30 rapid tire deflator systems to 
                be distributed to those ports where port runners are a 
                threat.
                    (J) $480,000 for 20 portable Treasury Enforcement 
                Communications Systems (TECS) terminals to be moved 
                among ports as needed.
                    (K) $1,000,000 for 20 remote watch surveillance 
                camera systems at ports where there are suspicious 
                activities at loading docks, vehicle queues, secondary 
                inspection lanes, or areas where visual surveillance or 
                observation is obscured.
                    (L) $1,254,000 for 57 weigh-in-motion sensors to be 
                distributed among the ports with the greatest volume of 
                outbound traffic.
                    (M) $180,000 for 36 AM traffic information radio 
                stations, with 1 station to be located at each border 
                crossing.
                    (N) $1,040,000 for 260 inbound vehicle counters to 
                be installed at every inbound vehicle lane.
                    (O) $950,000 for 38 spotter camera systems to 
                counter the surveillance of customs inspection 
                activities by persons outside the boundaries of ports 
                where such surveillance activities are occurring.
                    (P) $390,000 for 60 inbound commercial truck 
                transponders to be distributed to all ports of entry.
                    (Q) $1,600,000 for 40 narcotics vapor and particle 
                detectors to be distributed to each border crossing.
                    (R) $400,000 for license plate reader automatic 
                targeting software to be installed at each port to 
                target inbound vehicles.
            (2) United states-canada border.--For the United States-
        Canada border, the following:
                    (A) $3,000,000 for 4 Vehicle and Container 
                Inspection Systems (VACIS).
                    (B) $8,800,000 for 4 mobile truck x-rays with 
                transmission and backscatter imaging.
                    (C) $3,600,000 for 4 1-MeV pallet x-rays.
                    (D) $250,000 for 50 portable contraband detectors 
                (busters) to be distributed among ports where the 
                current allocations are inadequate.
                    (E) $300,000 for 25 contraband detection kits to be 
                distributed among ports based on traffic volume.
                    (F) $240,000 for 10 portable Treasury Enforcement 
                Communications Systems (TECS) terminals to be moved 
                among ports as needed.
                    (G) $400,000 for 10 narcotics vapor and particle 
                detectors to be distributed to each border crossing 
                based on traffic volume.
            (3) Florida and gulf coast seaports.--For Florida and the 
        Gulf Coast seaports, the following:
                    (A) $4,500,000 for 6 Vehicle and Container 
                Inspection Systems (VACIS).
                    (B) $11,800,000 for 5 mobile truck x-rays with 
                transmission and backscatter imaging.
                    (C) $7,200,000 for 8 1-MeV pallet x-rays.
                    (D) $250,000 for 50 portable contraband detectors 
                (busters) to be distributed among ports where the 
                current allocations are inadequate.
                    (E) $300,000 for 25 contraband detection kits to be 
                distributed among ports based on traffic volume.
    (b) Fiscal Year 2003.--Of the amounts made available for fiscal 
year 2003 under section 301(b)(1)(B) of the Customs Procedural Reform 
and Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(B)), as amended by 
section 311(a) of this Act, $9,000,000 shall be available until 
expended for the maintenance and support of the equipment and training 
of personnel to maintain and support the equipment described in 
subsection (a).
    (c) Acquisition of Technologically Superior Equipment; Transfer of 
Funds.--
            (1) In general.--The Commissioner of Customs may use 
        amounts made available for fiscal year 2002 under section 
        301(b)(1)(A) of the Customs Procedural Reform and 
        Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as 
        amended by section 311(a) of this Act, for the acquisition of 
        equipment other than the equipment described in subsection (a) 
        if such other equipment--
                    (A)(i) is technologically superior to the equipment 
                described in subsection (a); and
                    (ii) will achieve at least the same results at a 
                cost that is the same or less than the equipment 
                described in subsection (a); or
                    (B) can be obtained at a lower cost than the 
                equipment described in subsection (a).
            (2) Transfer of funds.--Notwithstanding any other provision 
        of this section, the Commissioner of Customs may reallocate an 
        amount not to exceed 10 percent of--
                    (A) the amount specified in any of subparagraphs 
                (A) through (R) of subsection (a)(1) for equipment 
                specified in any other of such subparagraphs (A) 
                through (R);
                    (B) the amount specified in any of subparagraphs 
                (A) through (G) of subsection (a)(2) for equipment 
                specified in any other of such subparagraphs (A) 
                through (G); and
                    (C) the amount specified in any of subparagraphs 
                (A) through (E) of subsection (a)(3) for equipment 
                specified in any other of such subparagraphs (A) 
                through (E).

SEC. 313. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.

    As part of the annual performance plan for each of the fiscal years 
2002 and 2003 covering each program activity set forth in the budget of 
the United States Customs Service, as required under section 1115 of 
title 31, United States Code, the Commissioner of Customs shall 
establish performance goals, performance indicators, and comply with 
all other requirements contained in paragraphs (1) through (6) of 
subsection (a) of such section with respect to each of the activities 
to be carried out pursuant to section 312.

     CHAPTER 2--CHILD CYBER-SMUGGLING CENTER OF THE CUSTOMS SERVICE

SEC. 321. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAM TO PREVENT CHILD 
              PORNOGRAPHY/CHILD SEXUAL EXPLOITATION.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated to the Customs Service $10,000,000 for fiscal year 2002 to 
carry out the program to prevent child pornography/child sexual 
exploitation established by the Child Cyber-Smuggling Center of the 
Customs Service.
    (b) Use of Amounts for Child Pornography Cyber Tipline.--Of the 
amount appropriated under subsection (a), the Customs Service shall 
provide 3.75 percent of such amount to the National Center for Missing 
and Exploited Children for the operation of the child pornography cyber 
tipline of the Center and for increased public awareness of the 
tipline.

                  CHAPTER 3--MISCELLANEOUS PROVISIONS

SEC. 331. ADDITIONAL CUSTOMS SERVICE OFFICERS FOR UNITED STATES-CANADA 
              BORDER.

    Of the amount made available for fiscal year 2002 under paragraphs 
(1) and (2)(A) of section 301(b) of the Customs Procedural Reform and 
Simplification Act of 1978 (19 U.S.C. 2075(b)), as amended by section 
311 of this Act, $28,300,000 shall be available until expended for the 
Customs Service to hire approximately 285 additional Customs Service 
officers to address the needs of the offices and ports along the United 
States-Canada border.

SEC. 332. STUDY AND REPORT RELATING TO PERSONNEL PRACTICES OF THE 
              CUSTOMS SERVICE.

    (a) Study.--The Commissioner of Customs shall conduct a study of 
current personnel practices of the Customs Service, including an 
overview of performance standards and the effect and impact of the 
collective bargaining process on drug interdiction efforts of the 
Customs Service and a comparison of duty rotation policies of the 
Customs Service and other Federal agencies that employ similarly-
situated personnel.
    (b) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Commissioner of Customs shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report containing the results of 
the study conducted under subsection (a).

SEC. 333. STUDY AND REPORT RELATING TO ACCOUNTING AND AUDITING 
              PROCEDURES OF THE CUSTOMS SERVICE.

    (a) Study.--(1) The Commissioner of Customs shall conduct a study 
of actions by the Customs Service to ensure that appropriate training 
is being provided to Customs Service personnel who are responsible for 
financial auditing of importers.
    (2) In conducting the study, the Commissioner--
            (A) shall specifically identify those actions taken to 
        comply with provisions of law that protect the privacy and 
        trade secrets of importers, such as section 552(b) of title 5, 
        United States Code, and section 1905 of title 18, United States 
        Code; and
            (B) shall provide for public notice and comment relating to 
        verification of the actions described in subparagraph (A).
    (b) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Commissioner of Customs shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report containing the results of 
the study conducted under subsection (a).

SEC. 334. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM; 
              REPORTS.

    (a) Establishment and Implementation.--
            (1) In general.--Not later than September 30, 2003, the 
        Commissioner of Customs shall, in accordance with the audit of 
        the Customs Service's fiscal years 2000 and 1999 financial 
        statements (as contained in the report of the Office of the 
        Inspector General of the Department of the Treasury issued on 
        February 23, 2001), establish and implement a cost accounting 
        system for expenses incurred in both commercial and 
        noncommercial operations of the Customs Service.
            (2) Additional requirement.--The cost accounting system 
        described in paragraph (1) shall provide for an identification 
        of expenses based on the type of operation, the port at which 
        the operation took place, the amount of time spent on the 
        operation by personnel of the Customs Service, and an 
        identification of expenses based on any other appropriate 
        classification necessary to provide for an accurate and 
        complete accounting of the expenses.
    (b) Reports.--Beginning on the date of the enactment of this Act 
and ending on the date on which the cost accounting system described in 
subsection (a) is fully implemented, the Commissioner of Customs shall 
prepare and submit to Congress on a quarterly basis a report on the 
progress of implementing the cost accounting system pursuant to 
subsection (a).

SEC. 335. STUDY AND REPORT RELATING TO TIMELINESS OF PROSPECTIVE 
              RULINGS.

    (a) Study.--The Comptroller General shall conduct a study on the 
extent to which the Office of Regulations and Rulings of the Customs 
Service has made improvements to decrease the amount of time to issue 
prospective rulings from the date on which a request for the ruling is 
received by the Customs Service.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit to the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate a report containing the results of the study 
conducted under subsection (a).
    (c) Definition.--In this section, the term ``prospective ruling'' 
means a ruling that is requested by an importer on goods that are 
proposed to be imported into the United States and that relates to the 
proper classification, valuation, or marking of such goods.

SEC. 336. STUDY AND REPORT RELATING TO CUSTOMS USER FEES.

    (a) Study.--The Comptroller General shall conduct a study on the 
extent to which the amount of each customs user fee imposed under 
section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act 
of 1985 (19 U.S.C. 58c(a)) is commensurate with the level of services 
provided by the Customs Service relating to the fee so imposed.
    (b) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report in classified form 
containing--
            (1) the results of the study conducted under subsection 
        (a); and
            (2) recommendations for the appropriate amount of the 
        customs user fees if such results indicate that the fees are 
        not commensurate with the level of services provided by the 
        Customs Service.

SEC. 337. FEES FOR CUSTOMS INSPECTIONS AT EXPRESS COURIER FACILITIES.

    (a) In General.--Section 13031(b)(9) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)) is amended as 
follows:
            (1) In subparagraph (A)--
                    (A) in the matter preceding clause (i), by striking 
                ``the processing of merchandise that is informally 
                entered or released'' and inserting ``the processing of 
                letters, documents, records, shipments, merchandise, or 
                any other item that is valued at an amount under $2,000 
                (or such higher amount as the Secretary may set by 
                regulation pursuant to section 498 of the Tariff Act of 
                1930), whether or not such items are informally entered 
                or released (except items entered or released for 
                immediate exportation),''; and
                    (B) in clause (ii) to read as follows:
                    ``(ii) In the case of an express consignment 
                carrier facility or centralized hub facility, $.66 per 
                individual airway bill or bill of lading.''.
            (2) By redesignating subparagraph (B) as subparagraph (C) 
        and inserting after subparagraph (A) the following:
            ``(B)(i) For fiscal year 2004 and subsequent fiscal years, 
        the Secretary of the Treasury may adjust (not more than once 
        per fiscal year) the amount described in subparagraph (A)(ii) 
        to not less than $.35 but not more than $1.00 per individual 
        airway bill or bill of lading. The Secretary shall provide 
        notice in the Federal Register of a proposed adjustment under 
        the preceding sentence and the reasons therefor and shall allow 
        for public comment on the proposed adjustment.
            ``(ii) The payment required by subparagraph (A)(ii) shall 
        be the only payment required for reimbursement of the Customs 
        Service in connection with the processing of an individual 
        airway bill or bill of lading in accordance with such 
        subparagraph, except that the Customs Service may charge a fee 
        to cover expenses of the Customs Service for adequate office 
        space, equipment, furnishings, supplies, and security.
            ``(iii)(I) The payment required by subparagraph (A)(ii) and 
        clause (ii) shall be paid on a quarterly basis to the Customs 
        Service in accordance with regulations prescribed by the 
        Secretary of the Treasury.
            ``(II) 50 percent of the amount of payments received under 
        subparagraph (A)(ii) and clause (ii) shall, in accordance with 
        section 524 of the Tariff Act of 1930, be deposited as a refund 
        to the appropriation for the amount paid out of that 
        appropriation for the costs incurred in providing services to 
        express consignment carrier facilities or centralized hub 
        facilities. Amounts deposited in accordance with the preceding 
        sentence shall be available until expended for the provision of 
        customs services to express consignment carrier facilities or 
        centralized hub facilities.
            ``(III) Notwithstanding section 524 of the Tariff Act of 
        1930, the remaining 50 percent of the amount of payments 
        received under subparagraph (A)(ii) and clause (ii) shall be 
        paid to the Secretary of the Treasury, which is in lieu of the 
        payment of fees under subsection (a)(10) of this section.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on October 1, 2002.

SEC. 338. NATIONAL CUSTOMS AUTOMATION PROGRAM.

    Section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b)) is 
amended by striking the second sentence and inserting the following: 
``The Secretary may, by regulation, require the electronic submission 
of information described in subsection (a) or any other information 
required to be submitted to the Customs Service separately pursuant to 
this subpart.''.

                  CHAPTER 4--ANTITERRORISM PROVISIONS

SEC. 341. IMMUNITY FOR UNITED STATES OFFICIALS THAT ACT IN GOOD FAITH.

    (a) Immunity.--Section 3061 of the Revised Statutes (19 U.S.C. 482) 
is amended--
            (1) by striking ``Any of the officers'' and inserting ``(a) 
        Any of the officers''; and
            (2) by adding at the end the following:
    ``(b) Any officer or employee of the United States conducting a 
search of a person pursuant to subsection (a) shall not be held liable 
for any civil damages as a result of such search if the officer or 
employee performed the search in good faith.''.
    (b) Requirement To Post Policy and Procedures for Searches of 
Passengers.--Not later than 30 days after the date of the enactment of 
this Act, the Commissioner of the Customs Service shall ensure that at 
each Customs border facility appropriate notice is posted that provides 
a summary of the policy and procedures of the Customs Service for 
searching passengers, including a statement of the policy relating to 
the prohibition on the conduct of profiling of passengers based on 
gender, race, color, religion, or ethnic background.

SEC. 342. EMERGENCY ADJUSTMENTS TO OFFICES, PORTS OF ENTRY, OR STAFFING 
              OF THE CUSTOMS SERVICE.

    Section 318 of the Tariff Act of 1930 (19 U.S.C. 1318) is amended--
            (1) by striking ``Whenever the President'' and inserting 
        ``(a) Whenever the President''; and
            (2) by adding at the end the following:
    ``(b)(1) Notwithstanding any other provision of law, the Secretary 
of the Treasury, when necessary to respond to a national emergency 
declared under the National Emergencies Act (50 U.S.C. 1601 et seq.) or 
to a specific threat to human life or national interests, is authorized 
to take the following actions on a temporary basis:
            ``(A) Eliminate, consolidate, or relocate any office or 
        port of entry of the Customs Service.
            ``(B) Modify hours of service, alter services rendered at 
        any location, or reduce the number of employees at any 
        location.
            ``(C) Take any other action that may be necessary to 
        directly respond to the national emergency or specific threat.
    ``(2) Notwithstanding any other provision of law, the Commissioner 
of Customs, when necessary to respond to a specific threat to human 
life or national interests, is authorized to close temporarily any 
Customs office or port of entry or take any other lesser action that 
may be necessary to respond to the specific threat.
    ``(3) The Secretary of the Treasury or the Commissioner of Customs, 
as the case may be, shall notify the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the Senate not 
later than 72 hours after taking any action under paragraph (1) or 
(2).''.

SEC. 343. MANDATORY ADVANCED ELECTRONIC INFORMATION FOR CARGO AND 
              PASSENGERS.

    (a) Cargo Information.--
            (1) In general.--Section 431(b) of the Tariff Act of 1930 
        (19 U.S.C. 1431(b)) is amended--
                    (A) in the first sentence, by striking ``Any 
                manifest'' and inserting ``(1) Any manifest''; and
                    (B) by adding at the end the following:
    ``(2)(A) In addition to any other requirement under this section, 
for each land, air, or vessel carrier required to make entry under the 
customs laws of the United States, the pilot, the master, operator, or 
owner of such carrier (or the authorized agent of such operator or 
owner) shall provide by electronic transmission cargo manifest 
information in advance of such entry in such manner, time, and form as 
prescribed under regulations by the Secretary. The Secretary may 
exclude any class of land, air, or vessel carrier for which the 
Secretary concludes the requirements of this subparagraph are not 
necessary.
    ``(B) The Secretary shall cooperate with other appropriate Federal 
departments and agencies for the purpose of providing to such 
departments and agencies as soon as practicable cargo manifest 
information obtained pursuant to subparagraph (A). In carrying out the 
preceding sentence, the Secretary, to the maximum extent practicable, 
shall protect the privacy and property rights with respect to the cargo 
involved.''.
            (2) Conforming amendments.--Subparagraphs (A) and (C) of 
        section 431(d)(1) of such Act are each amended by inserting 
        before the semicolon ``or subsection (b)(2)''.
    (b) Passenger Information.--Part II of title IV of the Tariff Act 
of 1930 (19 U.S.C. 1431 et seq.) is amended by inserting after section 
431 the following:

``SEC. 432. PASSENGER AND CREW INFORMATION REQUIRED FOR LAND, AIR, OR 
              VESSEL CARRIERS.

    ``(a) In General.--For every person arriving or departing on a 
land, air, or vessel carrier required to make entry or obtain clearance 
under the customs laws of the United States, the pilot, the master, 
operator, or owner of such carrier (or the authorized agent of such 
operator or owner) shall provide by electronic transmission information 
described in subsection (b) in advance of such entry or clearance in 
such manner, time, and form as prescribed under regulations by the 
Secretary.
    ``(b) Information Described.--The information described in this 
subsection shall include for each person described in subsection (a), 
if applicable, the person's--
            ``(1) full name;
            ``(2) date of birth and citizenship;
            ``(3) gender;
            ``(4) passport number and country of issuance;
            ``(5) United States visa number or resident alien card 
        number;
            ``(6) passenger name record; and
            ``(7) such additional information that the Secretary, by 
        regulation, determines is reasonably necessary to ensure 
        aviation and maritime safety pursuant to the laws enforced or 
        administered by the Customs Service.
    ``(c) Sharing of Information.--The Secretary shall cooperate with 
other appropriate Federal departments and agencies for the purpose of 
providing to such departments and agencies as soon as practicable 
electronic transmission information obtained pursuant to subsection 
(a). In carrying out the preceding sentence, the Secretary, to the 
maximum extent practicable, shall protect the privacy rights of the 
person with respect to which the information relates.''.
    (c) Definition.--Section 401 of the Tariff Act of 1930 (19 U.S.C. 
1401) is amended by adding at the end the following:
    ``(t) The term `land, air, or vessel carrier' means a land, air, or 
vessel carrier, as the case may be, that transports goods or passengers 
for payment or other consideration, including money or services 
rendered.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect beginning 45 days after the date of the enactment of this Act.

SEC. 344. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND IN OUTBOUND 
              MAIL.

    The Tariff Act of 1930 is amended by inserting after section 582 
the following:

``SEC. 583. EXAMINATION OF OUTBOUND MAIL.

    ``(a) Examination.--
            ``(1) In general.--For purposes of ensuring compliance with 
        the Customs laws of the United States and other laws enforced 
        by the Customs Service, including the provisions of law 
        described in paragraph (2), a Customs officer may, subject to 
        the provisions of this section, stop and search at the border, 
        without a search warrant, mail of domestic origin transmitted 
        for export by the United States Postal Service and foreign mail 
        transiting the United States that is being imported or exported 
        by the United States Postal Service.
            ``(2) Provisions of law described.--The provisions of law 
        described in this paragraph are the following:
                    ``(A) Section 5316 of title 31, United States Code 
                (relating to reports on exporting and importing 
                monetary instruments).
                    ``(B) Sections 1461, 1463, 1465, and 1466 and 
                chapter 110 of title 18, United States Code (relating 
                to obscenity and child pornography).
                    ``(C) Section 1003 of the Controlled Substances 
                Import and Export Act (21 U.S.C. 953; relating to 
                exportation of controlled substances).
                    ``(D) The Export Administration Act of 1979 (50 
                U.S.C. app. 2401 et seq.).
                    ``(E) Section 38 of the Arms Export Control Act (22 
                U.S.C. 2778).
                    ``(F) The International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.).
    ``(b) Search of Mail Not Sealed Against Inspection and Other 
Mail.--Mail not sealed against inspection under the postal laws and 
regulations of the United States, mail which bears a customs 
declaration, and mail with respect to which the sender or addressee has 
consented in writing to search, may be searched by a Customs officer.
    ``(c) Search of Mail Sealed Against Inspection.--(1) Mail sealed 
against inspection under the postal laws and regulations of the United 
States may be searched by a Customs officer, subject to paragraph (2), 
upon reasonable cause to suspect that such mail contains one or more of 
the following:
            ``(A) Monetary instruments, as defined in section 1956 of 
        title 18, United States Code.
            ``(B) A weapon of mass destruction, as defined in section 
        2332a(b) of title 18, United States Code.
            ``(C) A drug or other substance listed in schedule I, II, 
        III, or IV in section 202 of the Controlled Substances Act (21 
        U.S.C. 812).
            ``(D) National defense and related information transmitted 
        in violation of any of sections 793 through 798 of title 18, 
        United States Code.
            ``(E) Merchandise mailed in violation of section 1715 or 
        1716 of title 18, United States Code.
            ``(F) Merchandise mailed in violation of any provision of 
        chapter 71 (relating to obscenity) or chapter 110 (relating to 
        sexual exploitation and other abuse of children) of title 18, 
        United States Code.
            ``(G) Merchandise mailed in violation of the Export 
        Administration Act of 1979 (50 U.S.C. app. 2401 et seq.).
            ``(H) Merchandise mailed in violation of section 38 of the 
        Arms Export Control Act (22 U.S.C. 2778).
            ``(I) Merchandise mailed in violation of the International 
        Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
            ``(J) Merchandise mailed in violation of the Trading with 
        the Enemy Act (50 U.S.C. app. 1 et seq.).
            ``(K) Merchandise subject to any other law enforced by the 
        Customs Service.
    ``(2) No person acting under authority of paragraph (1) shall read, 
or authorize any other person to read, any correspondence contained in 
mail sealed against inspection unless prior to so reading--
            ``(A) a search warrant has been issued pursuant to Rule 41, 
        Federal Rules of Criminal Procedure; or
            ``(B) the sender or addressee has given written 
        authorization for such reading.''.

SEC. 345. AUTHORIZATION OF APPROPRIATIONS FOR REESTABLISHMENT OF 
              CUSTOMS OPERATIONS IN NEW YORK CITY.

    (a) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated for 
        the reestablishment of operations of the Customs Service in New 
        York, New York, such sums as may be necessary for fiscal year 
        2002.
            (2) Operations described.--The operations referred to in 
        paragraph (1) include, but are not limited to, the following:
                    (A) Operations relating to the Port Director of New 
                York City, the New York Customs Management Center 
                (including the Director of Field Operations), and the 
                Special Agent-In-Charge for New York.
                    (B) Commercial operations, including textile 
                enforcement operations and salaries and expenses of--
                            (i) trade specialists who determine the 
                        origin and value of merchandise;
                            (ii) analysts who monitor the entry data 
                        into the United States of textiles and textile 
                        products; and
                            (iii) Customs officials who work with 
                        foreign governments to examine textile makers 
                        and verify entry information.
    (b) Availability.--Amounts appropriated pursuant to the 
authorization of appropriations under subsection (a) are authorized to 
remain available until expended.

              CHAPTER 5--TEXTILE TRANSSHIPMENT PROVISIONS

SEC. 351. GAO AUDIT OF TEXTILE TRANSSHIPMENT MONITORING BY CUSTOMS 
              SERVICE.

    (a) GAO Audit.--The Comptroller General of the United States shall 
conduct an audit of the system established and carried out by the 
Customs Service to monitor textile transshipment.
    (b) Report.--Not later than 9 months after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on Ways 
and Means of the House of Representatives and Committee on Finance of 
the Senate a report that contains the results of the study conducted 
under subsection (a), including recommendations for improvements to the 
transshipment monitoring system if applicable.
    (c) Transshipment Described.--Transshipment within the meaning of 
this section has occurred when preferential treatment under any 
provision of law has been claimed for a textile or apparel article on 
the basis of material false information concerning the country of 
origin, manufacture, processing, or assembly of the article or any of 
its components. For purposes of the preceding sentence, false 
information is material if disclosure of the true information would 
mean or would have meant that the article is or was ineligible for 
preferential treatment under the provision of law in question.

SEC. 352. AUTHORIZATION OF APPROPRIATIONS FOR TEXTILE TRANSSHIPMENT 
              ENFORCEMENT OPERATIONS.

    (a) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated for 
        textile transshipment enforcement operations of the Customs 
        Service $9,500,000 for fiscal year 2002.
            (2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) are 
        authorized to remain available until expended.
    (b) Use of Funds.--Of the amount appropriated pursuant to the 
authorization of appropriations under subsection (a), the following 
amounts are authorized to be made available for the following purposes:
            (1) Import specialists.--$1,463,000 for 21 Customs import 
        specialists to be assigned to selected ports for documentation 
        review to support detentions and exclusions and 1 additional 
        Customs import specialist assigned to the Customs headquarters 
        textile program to administer the program and provide 
        oversight.
            (2) Inspectors.--$652,080 for 10 Customs inspectors to be 
        assigned to selected ports to examine targeted high-risk 
        shipments.
            (3) Investigators.--(A) $1,165,380 for 10 investigators to 
        be assigned to selected ports to investigate instances of 
        smuggling, quota and trade agreement circumvention, and use of 
        counterfeit visas to enter inadmissible goods.
            (B) $149,603 for 1 investigator to be assigned to Customs 
        headquarters textile program to coordinate and ensure 
        implementation of textile production verification team results 
        from an investigation perspective.
            (4) International trade specialists.--$226,500 for 3 
        international trade specialists to be assigned to Customs 
        headquarters to be dedicated to illegal textile transshipment 
        policy issues and other free trade agreement enforcement 
        issues.
            (5) Permanent import specialists for hong kong.--$500,000 
        for 2 permanent import specialist positions and $500,000 for 2 
        investigators to be assigned to Hong Kong to work with Hong 
        Kong and other government authorities in Southeast Asia to 
        assist such authorities pursue proactive enforcement of 
        bilateral trade agreements.
            (6) Various permanent trade positions.--$3,500,000 for the 
        following:
                    (A) 2 permanent positions to be assigned to the 
                Customs attache office in Central America to address 
                trade enforcement issues for that region.
                    (B) 2 permanent positions to be assigned to the 
                Customs attache office in South Africa to address trade 
                enforcement issues pursuant to the African Growth and 
                Opportunity Act (title I of Public Law 106-200).
                    (C) 4 permanent positions to be assigned to the 
                Customs attache office in Mexico to address the threat 
                of illegal textile transshipment through Mexico and 
                other related issues under the North American Free 
                Trade Agreement Act.
                    (D) 2 permanent positions to be assigned to the 
                Customs attache office in Seoul, South Korea, to 
                address the trade issues in the geographic region.
                    (E) 2 permanent positions to be assigned to the 
                proposed Customs attache office in New Delhi, India, to 
                address the threat of illegal textile transshipment and 
                other trade enforcement issues.
                    (F) 2 permanent positions to be assigned to the 
                Customs attache office in Rome, Italy, to address trade 
                enforcement issues in the geographic region, including 
                issues under free trade agreements with Jordan and 
                Israel.
            (7) Attorneys.--$179,886 for 2 attorneys for the Office of 
        the Chief Counsel of the Customs Service to pursue cases 
        regarding illegal textile transshipment.
            (8) Auditors.--$510,000 for 6 Customs auditors to perform 
        internal control reviews and document and record reviews of 
        suspect importers.
            (9) Additional travel funds.--$250,000 for deployment of 
        additional textile production verification teams to sub-Saharan 
        Africa.
            (10) Training.--(A) $75,000 for training of Customs 
        personnel.
            (B) $200,000 for training for foreign counterparts in risk 
        management analytical techniques and for teaching factory 
        inspection techniques, model law Development, and enforcement 
        techniques.
            (11) Outreach.--$60,000 for outreach efforts to United 
        States importers.

SEC. 353. IMPLEMENTATION OF THE AFRICAN GROWTH AND OPPORTUNITY ACT.

    Of the amount made available for fiscal year 2002 under section 
301(b)(2)(A) of the Customs Procedural Reform and Simplification Act of 
1978 (19 U.S.C. 2075(b)(2)(A)), as amended by section 311(b)(1) of this 
Act, $1,317,000 shall be available until expended for the Customs 
Service to provide technical assistance to help sub-Saharan Africa 
countries develop and implement effective visa and anti-transshipment 
systems as required by the African Growth and Opportunity Act (title I 
of Public Law 106-200), as follows:
            (1) Travel funds.--$600,000 for import specialists, special 
        agents, and other qualified Customs personnel to travel to sub-
        Saharan Africa countries to provide technical assistance in 
        developing and implementing effective visa and anti-
        transshipment systems.
            (2) Import specialists.--$266,000 for 4 import specialists 
        to be assigned to Customs headquarters to be dedicated to 
        providing technical assistance to sub-Saharan African countries 
        for developing and implementing effective visa and anti-
        transshipment systems.
            (3) Data reconciliation analysts.--$151,000 for 2 data 
        reconciliation analysts to review apparel shipments.
            (4) Special agents.--$300,000 for 2 special agents to be 
        assigned to Customs headquarters to be available to provide 
        technical assistance to sub-Saharan African countries in the 
        performance of investigations and other enforcement 
        initiatives.

      Subtitle B--Office of the United States Trade Representative

SEC. 361. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 141(g)(1) of the Trade Act of 1974 (19 
U.S.C. 2171(g)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by striking 
                ``not to exceed'';
                    (B) in clause (i) to read as follows:
            ``(i) $30,000,000 for fiscal year 2002.'';
                    (C) in clause (ii) to read as follows:
            ``(ii) $32,300,000 for fiscal year 2003.''; and
                    (D) by adding at the end the following:
            ``(iii) $33,108,000 for fiscal year 2004.''; and
            (2) in subparagraph (B)--
                    (A) in clause (i), by adding ``and'' at the end;
                    (B) by striking clause (ii); and
                    (C) by redesignating clause (iii) as clause (ii).
    (b) Submission of Out-Year Budget Projections.--Section 141(g) of 
the Trade Act of 1974 (19 U.S.C. 2171(g)) is amended by adding at the 
end the following:
    ``(3) By not later than the date on which the President submits to 
Congress the budget of the United States Government for a fiscal year, 
the United States Trade Representative shall submit to the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate the projected amount of funds for the succeeding 
fiscal year that will be necessary for the Office to carry out its 
functions.''.
    (c) Additional Staff for Office of Assistant U.S. Trade 
Representative for Congressional Affairs.--
            (1) In general.--There is authorized to be appropriated 
        such sums as may be necessary for fiscal year 2002 for the 
        salaries and expenses of two additional legislative specialist 
        employee positions within the Office of the Assistant United 
        States Trade Representative for Congressional Affairs.
            (2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) are 
        authorized to remain available until expended.

        Subtitle C--United States International Trade Commission

SEC. 371. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 330(e)(2)(A) of the Tariff Act of 1930 (19 
U.S.C. 1330(e)(2)) is amended--
            (1) in clause (i) to read as follows:
            ``(i) $51,440,000 for fiscal year 2002.'';
            (2) in clause (ii) to read as follows:
            ``(ii) $54,000,000 for fiscal year 2003.''; and
            (3) by adding at the end the following:
            ``(iii) $57,240,000 for fiscal year 2004.''.
    (b) Submission of Out-Year Budget Projections.--Section 330(e) of 
the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended by adding at 
the end the following:
    ``(4) By not later than the date on which the President submits to 
Congress the budget of the United States Government for a fiscal year, 
the Commission shall submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the Senate the 
projected amount of funds for the succeeding fiscal year that will be 
necessary for the Commission to carry out its functions.''.

                   Subtitle D--Other trade provisions

SEC. 381. INCREASE IN AGGREGATE VALUE OF ARTICLES EXEMPT FROM DUTY 
              ACQUIRED ABROAD BY UNITED STATES RESIDENTS.

    (a) In General.--Subheading 9804.00.65 of the Harmonized Tariff 
Schedule of the United States is amended in the article description 
column by striking ``$400'' and inserting ``$800''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 90 days after the date of the enactment of this Act.

SEC. 382. REGULATORY AUDIT PROCEDURES.

    Section 509(b) of the Tariff Act of 1930 (19 U.S.C. 1509(b)) is 
amended by adding at the end the following:
            ``(6)(A) If during the course of any audit concluded under 
        this subsection, the Customs Service identifies overpayments of 
        duties or fees or over-declarations of quantities or values 
        that are within the time period and scope of the audit that the 
        Customs Service has defined, then in calculating the loss of 
        revenue or monetary penalties under section 592, the Customs 
        Service shall treat the overpayments or over-declarations on 
        finally liquidated entries as an offset to any underpayments or 
        underdeclarations also identified on finally liquidated entries 
        if such overpayments or over-declarations were not made by the 
        person being audited for the purpose of violating any provision 
        of law.
            ``(B) Nothing in this paragraph shall be construed to 
        authorize a refund not otherwise authorized under section 
        520.''.

            DIVISION B--BIPARTISAN TRADE PROMOTION AUTHORITY

                  TITLE XXI--TRADE PROMOTION AUTHORITY

SEC. 2101. SHORT TITLE AND FINDINGS.

    (a) Short Title.--This title may be cited as the ``Bipartisan Trade 
Promotion Authority Act of 2002''.
    (b) Findings.--The Congress makes the following findings:
            (1) The expansion of international trade is vital to the 
        national security of the United States. Trade is critical to 
        the economic growth and strength of the United States and to 
        its leadership in the world. Stable trading relationships 
        promote security and prosperity. Trade agreements today serve 
        the same purposes that security pacts played during the Cold 
        War, binding nations together through a series of mutual rights 
        and obligations. Leadership by the United States in 
        international trade fosters open markets, democracy, and peace 
        throughout the world.
            (2) The national security of the United States depends on 
        its economic security, which in turn is founded upon a vibrant 
        and growing industrial base. Trade expansion has been the 
        engine of economic growth. Trade agreements maximize 
        opportunities for the critical sectors and building blocks of 
        the economy of the United States, such as information 
        technology, telecommunications and other leading technologies, 
        basic industries, capital equipment, medical equipment, 
        services, agriculture, environmental technology, and 
        intellectual property. Trade will create new opportunities for 
        the United States and preserve the unparalleled strength of the 
        United States in economic, political, and military affairs. The 
        United States, secured by expanding trade and economic 
        opportunities, will meet the challenges of the twenty-first 
        century.
            (3) At the same time, the recent pattern of decisions by 
        dispute settlement panels and the Appellate Body of the World 
        Trade Organization to impose obligations and restrictions on 
        the use of antidumping and countervailing measures by WTO 
        members under the Antidumping Agreement and the Agreement on 
        Subsidies and Countervailing Measures has raised concerns, and 
        Congress is concerned that dispute settlement panels and the 
        Appellate Body of the WTO appropriately apply the standard of 
        review contained in Article 17.6 of the Antidumping Agreement, 
        to provide deference to a permissible interpretation by a WTO 
        member of provisions of the Antidumping Agreement, and to the 
        evaluation by a WTO member of the facts where that evaluation 
        is unbiased and objective and the establishment of the facts is 
        proper.

SEC. 2102. TRADE NEGOTIATING OBJECTIVES.

    (a) Overall Trade Negotiating Objectives.--The overall trade 
negotiating objectives of the United States for agreements subject to 
the provisions of section 2103 are--
            (1) to obtain more open, equitable, and reciprocal market 
        access;
            (2) to obtain the reduction or elimination of barriers and 
        distortions that are directly related to trade and that 
        decrease market opportunities for United States exports or 
        otherwise distort United States trade;
            (3) to further strengthen the system of international 
        trading disciplines and procedures, including dispute 
        settlement;
            (4) to foster economic growth, raise living standards, and 
        promote full employment in the United States and to enhance the 
        global economy;
            (5) to ensure that trade and environmental policies are 
        mutually supportive and to seek to protect and preserve the 
        environment and enhance the international means of doing so, 
        while optimizing the use of the world's resources;
            (6) to promote respect for worker rights and the rights of 
        children consistent with core labor standards of the 
        International Labor Organization (as defined in section 
        2111(2)) and an understanding of the relationship between trade 
        and worker rights; and
            (7) to seek provisions in trade agreements under which 
        parties to those agreements strive to ensure that they do not 
        weaken or reduce the protections afforded in domestic 
        environmental and labor laws as an encouragement for trade.
    (b) Principal Trade Negotiating Objectives.--
            (1) Trade barriers and distortions.--The principal 
        negotiating objectives of the United States regarding trade 
        barriers and other trade distortions are--
                    (A) to expand competitive market opportunities for 
                United States exports and to obtain fairer and more 
                open conditions of trade by reducing or eliminating 
                tariff and nontariff barriers and policies and 
                practices of foreign governments directly related to 
                trade that decrease market opportunities for United 
                States exports or otherwise distort United States 
                trade; and
                    (B) to obtain reciprocal tariff and nontariff 
                barrier elimination agreements, with particular 
                attention to those tariff categories covered in section 
                111(b) of the Uruguay Round Agreements Act (19 U.S.C. 
                3521(b)).
            (2) Trade in services.--The principal negotiating objective 
        of the United States regarding trade in services is to reduce 
        or eliminate barriers to international trade in services, 
        including regulatory and other barriers that deny national 
        treatment and market access or unreasonably restrict the 
        establishment or operations of service suppliers.
            (3) Foreign investment.--The principal negotiating 
        objective of the United States regarding foreign investment is 
        to reduce or eliminate artificial or trade-distorting barriers 
        to trade-related foreign investment and, recognizing that 
        United States law on the whole provides a high level of 
        protection for investment, consistent with or greater than the 
        level required by international law, to secure for investors 
        important rights comparable to those that would be available 
        under United States legal principles and practice, by--
                    (A) reducing or eliminating exceptions to the 
                principle of national treatment;
                    (B) freeing the transfer of funds relating to 
                investments;
                    (C) reducing or eliminating performance 
                requirements, forced technology transfers, and other 
                unreasonable barriers to the establishment and 
                operation of investments;
                    (D) seeking to establish standards for 
                expropriation and compensation for expropriation, 
                consistent with United States legal principles and 
                practice;
                    (E) providing meaningful procedures for resolving 
                investment disputes;
                    (F) seeking to improve mechanisms used to resolve 
                disputes between an investor and a government through--
                            (i) mechanisms to eliminate frivolous 
                        claims; and
                            (ii) procedures to ensure the efficient 
                        selection of arbitrators and the expeditious 
                        disposition of claims;
                    (G) providing an appellate or similar review 
                mechanism to correct manifestly erroneous 
                interpretations of law; and
                    (H) ensuring the fullest measure of transparency in 
                the dispute settlement mechanism, to the extent 
                consistent with the need to protect information that is 
                classified or business confidential, by--
                            (i) ensuring that all requests for dispute 
                        settlement are promptly made public;
                            (ii) ensuring that--
                                    (I) all proceedings, submissions, 
                                findings, and decisions are promptly 
                                made public; and
                                    (II) all hearings are open to the 
                                public; and
                            (iii) establishing a mechanism for 
                        acceptance of amicus curiae submissions from 
                        businesses, unions, and nongovernmental 
                        organizations.
            (4) Intellectual property.--The principal negotiating 
        objectives of the United States regarding trade-related 
        intellectual property are--
                    (A) to further promote adequate and effective 
                protection of intellectual property rights, including 
                through--
                            (i)(I) ensuring accelerated and full 
                        implementation of the Agreement on Trade-
                        Related Aspects of Intellectual Property Rights 
                        referred to in section 101(d)(15) of the 
                        Uruguay Round Agreements Act (19 U.S.C. 
                        3511(d)(15)), particularly with respect to 
                        meeting enforcement obligations under that 
                        agreement; and
                            (II) ensuring that the provisions of any 
                        multilateral or bilateral trade agreement 
                        governing intellectual property rights that is 
                        entered into by the United States reflect a 
                        standard of protection similar to that found in 
                        United States law;
                            (ii) providing strong protection for new 
                        and emerging technologies and new methods of 
                        transmitting and distributing products 
                        embodying intellectual property;
                            (iii) preventing or eliminating 
                        discrimination with respect to matters 
                        affecting the availability, acquisition, scope, 
                        maintenance, use, and enforcement of 
                        intellectual property rights;
                            (iv) ensuring that standards of protection 
                        and enforcement keep pace with technological 
                        developments, and in particular ensuring that 
                        rightholders have the legal and technological 
                        means to control the use of their works through 
                        the Internet and other global communication 
                        media, and to prevent the unauthorized use of 
                        their works; and
                            (v) providing strong enforcement of 
                        intellectual property rights, including through 
                        accessible, expeditious, and effective civil, 
                        administrative, and criminal enforcement 
                        mechanisms; and
                    (B) to secure fair, equitable, and 
                nondiscriminatory market access opportunities for 
                United States persons that rely upon intellectual 
                property protection.
            (5) Transparency.--The principal negotiating objective of 
        the United States with respect to transparency is to obtain 
        wider and broader application of the principle of transparency 
        through--
                    (A) increased and more timely public access to 
                information regarding trade issues and the activities 
                of international trade institutions;
                    (B) increased openness at the WTO and other 
                international trade fora by increasing public access to 
                appropriate meetings, proceedings, and submissions, 
                including with regard to dispute settlement and 
                investment; and
                    (C) increased and more timely public access to all 
                notifications and supporting documentation submitted by 
                parties to the WTO.
            (6) Anti-corruption.--The principal negotiating objectives 
        of the United States with respect to the use of money or other 
        things of value to influence acts, decisions, or omissions of 
        foreign governments or officials or to secure any improper 
        advantage in a manner affecting trade are--
                    (A) to obtain high standards and appropriate 
                domestic enforcement mechanisms applicable to persons 
                from all countries participating in the applicable 
                trade agreement that prohibit such attempts to 
                influence acts, decisions, or omissions of foreign 
                governments; and
                    (B) to ensure that such standards do not place 
                United States persons at a competitive disadvantage in 
                international trade.
            (7) Improvement of the wto and multilateral trade 
        agreements.--The principal negotiating objectives of the United 
        States regarding the improvement of the World Trade 
        Organization, the Uruguay Round Agreements, and other 
        multilateral and bilateral trade agreements are--
                    (A) to achieve full implementation and extend the 
                coverage of the World Trade Organization and such 
                agreements to products, sectors, and conditions of 
                trade not adequately covered; and
                    (B) to expand country participation in and 
                enhancement of the Information Technology Agreement and 
                other trade agreements.
            (8) Regulatory practices.--The principal negotiating 
        objectives of the United States regarding the use of government 
        regulation or other practices by foreign governments to provide 
        a competitive advantage to their domestic producers, service 
        providers, or investors and thereby reduce market access for 
        United States goods, services, and investments are--
                    (A) to achieve increased transparency and 
                opportunity for the participation of affected parties 
                in the development of regulations;
                    (B) to require that proposed regulations be based 
                on sound science, cost-benefit analysis, risk 
                assessment, or other objective evidence;
                    (C) to establish consultative mechanisms among 
                parties to trade agreements to promote increased 
                transparency in developing guidelines, rules, 
                regulations, and laws for government procurement and 
                other regulatory regimes; and
                    (D) to achieve the elimination of government 
                measures such as price controls and reference pricing 
                which deny full market access for United States 
                products.
            (9) Electronic commerce.--The principal negotiating 
        objectives of the United States with respect to electronic 
        commerce are--
                    (A) to ensure that current obligations, rules, 
                disciplines, and commitments under the World Trade 
                Organization apply to electronic commerce;
                    (B) to ensure that--
                            (i) electronically delivered goods and 
                        services receive no less favorable treatment 
                        under trade rules and commitments than like 
                        products delivered in physical form; and
                            (ii) the classification of such goods and 
                        services ensures the most liberal trade 
                        treatment possible;
                    (C) to ensure that governments refrain from 
                implementing trade-related measures that impede 
                electronic commerce;
                    (D) where legitimate policy objectives require 
                domestic regulations that affect electronic commerce, 
                to obtain commitments that any such regulations are the 
                least restrictive on trade, nondiscriminatory, and 
                transparent, and promote an open market environment; 
                and
                    (E) to extend the moratorium of the World Trade 
                Organization on duties on electronic transmissions.
            (10) Reciprocal trade in agriculture.--(A) The principal 
        negotiating objective of the United States with respect to 
        agriculture is to obtain competitive opportunities for United 
        States exports of agricultural commodities in foreign markets 
        substantially equivalent to the competitive opportunities 
        afforded foreign exports in United States markets and to 
        achieve fairer and more open conditions of trade in bulk, 
        specialty crop, and value-added commodities by--
                    (i) reducing or eliminating, by a date certain, 
                tariffs or other charges that decrease market 
                opportunities for United States exports--
                            (I) giving priority to those products that 
                        are subject to significantly higher tariffs or 
                        subsidy regimes of major producing countries; 
                        and
                            (II) providing reasonable adjustment 
                        periods for United States import-sensitive 
                        products, in close consultation with the 
                        Congress on such products before initiating 
                        tariff reduction negotiations;
                    (ii) reducing tariffs to levels that are the same 
                as or lower than those in the United States;
                    (iii) reducing or eliminating subsidies that 
                decrease market opportunities for United States exports 
                or unfairly distort agriculture markets to the 
                detriment of the United States;
                    (iv) allowing the preservation of programs that 
                support family farms and rural communities but do not 
                distort trade;
                    (v) developing disciplines for domestic support 
                programs, so that production that is in excess of 
                domestic food security needs is sold at world prices;
                    (vi) eliminating Government policies that create 
                price-depressing surpluses;
                    (vii) eliminating state trading enterprises 
                whenever possible;
                    (viii) developing, strengthening, and clarifying 
                rules and effective dispute settlement mechanisms to 
                eliminate practices that unfairly decrease United 
                States market access opportunities or distort 
                agricultural markets to the detriment of the United 
                States, particularly with respect to import-sensitive 
                products, including--
                            (I) unfair or trade-distorting activities 
                        of state trading enterprises and other 
                        administrative mechanisms, with emphasis on 
                        requiring price transparency in the operation 
                        of state trading enterprises and such other 
                        mechanisms in order to end cross subsidization, 
                        price discrimination, and price undercutting;
                            (II) unjustified trade restrictions or 
                        commercial requirements, such as labeling, that 
                        affect new technologies, including 
                        biotechnology;
                            (III) unjustified sanitary or phytosanitary 
                        restrictions, including those not based on 
                        scientific principles in contravention of the 
                        Uruguay Round Agreements;
                            (IV) other unjustified technical barriers 
                        to trade; and
                            (V) restrictive rules in the administration 
                        of tariff rate quotas;
                    (ix) eliminating practices that adversely affect 
                trade in perishable or cyclical products, while 
                improving import relief mechanisms to recognize the 
                unique characteristics of perishable and cyclical 
                agriculture;
                    (x) ensuring that the use of import relief 
                mechanisms for perishable and cyclical agriculture are 
                as accessible and timely to growers in the United 
                States as those mechanisms that are used by other 
                countries;
                    (xi) taking into account whether a party to the 
                negotiations has failed to adhere to the provisions of 
                already existing trade agreements with the United 
                States or has circumvented obligations under those 
                agreements;
                    (xii) taking into account whether a product is 
                subject to market distortions by reason of a failure of 
                a major producing country to adhere to the provisions 
                of already existing trade agreements with the United 
                States or by the circumvention by that country of its 
                obligations under those agreements;
                    (xiii) otherwise ensuring that countries that 
                accede to the World Trade Organization have made 
                meaningful market liberalization commitments in 
                agriculture;
                    (xiv) taking into account the impact that 
                agreements covering agriculture to which the United 
                States is a party, including the North American Free 
                Trade Agreement, have on the United States agricultural 
                industry; and
                    (xv) maintaining bona fide food assistance programs 
                and preserving United States market development and 
                export credit programs.
            (B)(i) Before commencing negotiations with respect to 
        agriculture, the United States Trade Representative, in 
        consultation with the Congress, shall seek to develop a 
        position on the treatment of seasonal and perishable 
        agricultural products to be employed in the negotiations in 
        order to develop an international consensus on the treatment of 
        seasonal or perishable agricultural products in investigations 
        relating to dumping and safeguards and in any other relevant 
        area.
            (ii) During any negotiations on agricultural subsidies, the 
        United States Trade Representative shall seek to establish the 
        common base year for calculating the Aggregated Measurement of 
        Support (as defined in the Agreement on Agriculture) as the end 
        of each country's Uruguay Round implementation period, as 
        reported in each country's Uruguay Round market access 
        schedule.
            (iii) The negotiating objective provided in subparagraph 
        (A) applies with respect to agricultural matters to be 
        addressed in any trade agreement entered into under section 
        2103(a) or (b), including any trade agreement entered into 
        under section 2103(a) or (b) that provides for accession to a 
        trade agreement to which the United States is already a party, 
        such as the North American Free Trade Agreement and the United 
        States-Canada Free Trade Agreement.
            (11) Labor and the environment.--The principal negotiating 
        objectives of the United States with respect to labor and the 
        environment are--
                    (A) to ensure that a party to a trade agreement 
                with the United States does not fail to effectively 
                enforce its environmental or labor laws, through a 
                sustained or recurring course of action or inaction, in 
                a manner affecting trade between the United States and 
                that party after entry into force of a trade agreement 
                between those countries;
                    (B) to recognize that parties to a trade agreement 
                retain the right to exercise discretion with respect to 
                investigatory, prosecutorial, regulatory, and 
                compliance matters and to make decisions regarding the 
                allocation of resources to enforcement with respect to 
                other labor or environmental matters determined to have 
                higher priorities, and to recognize that a country is 
                effectively enforcing its laws if a course of action or 
                inaction reflects a reasonable exercise of such 
                discretion, or results from a bona fide decision 
                regarding the allocation of resources and no 
                retaliation may be authorized based on the exercise of 
                these rights or the right to establish domestic labor 
                standards and levels of environmental protection;
                    (C) to strengthen the capacity of United States 
                trading partners to promote respect for core labor 
                standards (as defined in section 2111(2));
                    (D) to strengthen the capacity of United States 
                trading partners to protect the environment through the 
                promotion of sustainable development;
                    (E) to reduce or eliminate government practices or 
                policies that unduly threaten sustainable development;
                    (F) to seek market access, through the elimination 
                of tariffs and nontariff barriers, for United States 
                environmental technologies, goods, and services; and
                    (G) to ensure that labor, environmental, health, or 
                safety policies and practices of the parties to trade 
                agreements with the United States do not arbitrarily or 
                unjustifiably discriminate against United States 
                exports or serve as disguised barriers to trade.
            (12) Dispute settlement and enforcement.--The principal 
        negotiating objectives of the United States with respect to 
        dispute settlement and enforcement of trade agreements are--
                    (A) to seek provisions in trade agreements 
                providing for resolution of disputes between 
                governments under those trade agreements in an 
                effective, timely, transparent, equitable, and reasoned 
                manner, requiring determinations based on facts and the 
                principles of the agreements, with the goal of 
                increasing compliance with the agreements;
                    (B) to seek to strengthen the capacity of the Trade 
                Policy Review Mechanism of the World Trade Organization 
                to review compliance with commitments;
                    (C) to seek provisions encouraging the early 
                identification and settlement of disputes through 
                consultation;
                    (D) to seek provisions to encourage the provision 
                of trade-expanding compensation if a party to a dispute 
                under the agreement does not come into compliance with 
                its obligations under the agreement;
                    (E) to seek provisions to impose a penalty upon a 
                party to a dispute under the agreement that--
                            (i) encourages compliance with the 
                        obligations of the agreement;
                            (ii) is appropriate to the parties, nature, 
                        subject matter, and scope of the violation; and
                            (iii) has the aim of not adversely 
                        affecting parties or interests not party to the 
                        dispute while maintaining the effectiveness of 
                        the enforcement mechanism; and
                    (F) to seek provisions that treat United States 
                principal negotiating objectives equally with respect 
                to--
                            (i) the ability to resort to dispute 
                        settlement under the applicable agreement;
                            (ii) the availability of equivalent dispute 
                        settlement procedures; and
                            (iii) the availability of equivalent 
                        remedies.
            (13) WTO extended negotiations.--The principal negotiating 
        objectives of the United States regarding trade in civil 
        aircraft are those set forth in section 135(c) of the Uruguay 
        Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules of 
        origin are the conclusion of an agreement described in section 
        132 of that Act (19 U.S.C. 3552).
    (c) Promotion of Certain Priorities.--In order to address and 
maintain United States competitiveness in the global economy, the 
President shall--
            (1) seek greater cooperation between the WTO and the ILO;
            (2) seek to establish consultative mechanisms among parties 
        to trade agreements to strengthen the capacity of United States 
        trading partners to promote respect for core labor standards 
        (as defined in section 2111(2)), and report to the Committee on 
        Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate on the content and operation 
        of such mechanisms;
            (3) seek to establish consultative mechanisms among parties 
        to trade agreements to strengthen the capacity of United States 
        trading partners to develop and implement standards for the 
        protection of the environment and human health based on sound 
        science, and report to the Committee on Ways and Means of the 
        House of Representatives and the Committee on Finance of the 
        Senate on the content and operation of such mechanisms;
            (4) conduct environmental reviews of future trade and 
        investment agreements, consistent with Executive Order 13141 of 
        November 16, 1999, and its relevant guidelines, and report to 
        the Committee on Ways and Means of the House of Representatives 
        and the Committee on Finance of the Senate on such reviews;
            (5) review the impact of future trade agreements on United 
        States employment, modeled after Executive Order 13141, and 
        report to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate on 
        such review;
            (6) take into account other legitimate United States 
        domestic objectives including, but not limited to, the 
        protection of legitimate health or safety, essential security, 
        and consumer interests and the law and regulations related 
        thereto;
            (7) have the Secretary of Labor consult with any country 
        seeking a trade agreement with the United States concerning 
        that country's labor laws and provide technical assistance to 
        that country if needed;
            (8) with respect to any trade agreement which the President 
        seeks to implement under trade authorities procedures, submit 
        to the Congress a report describing the extent to which the 
        country or countries that are parties to the agreement have in 
        effect laws governing exploitative child labor;
            (9)(A) preserve the ability of the United States to enforce 
        rigorously its trade laws, including the antidumping and 
        countervailing duty laws, and avoid agreements which lessen the 
        effectiveness of domestic and international disciplines on 
        unfair trade, especially dumping and subsidies, in order to 
        ensure that United States workers, agricultural producers, and 
        firms can compete fully on fair terms and enjoy the benefits of 
        reciprocal trade concessions; and
            (B) ensure that United States exports are not subject to 
        the abusive use of trade laws, including antidumping and 
        countervailing duty laws, by other countries.
            (10) continue to promote consideration of multilateral 
        environmental agreements and consult with parties to such 
        agreements regarding the consistency of any such agreement that 
        includes trade measures with existing environmental exceptions 
        under Article XX of the GATT 1994;
            (11) report to the Committee on Ways and Means of the House 
        of Representatives and the Committee on Finance of the Senate, 
        not later than 12 months after the imposition of a penalty or 
        remedy by the United States permitted by a trade agreement to 
        which this title applies, on the effectiveness of the penalty 
        or remedy applied under United States law in enforcing United 
        States rights under the trade agreement; and
            (12) seek to establish consultative mechanisms among 
        parties to trade agreements to examine the trade consequences 
        of significant and unanticipated currency movements and to 
        scrutinize whether a foreign government engaged in a pattern of 
        manipulating its currency to promote a competitive advantage in 
        international trade.
The report under paragraph (11) shall address whether the penalty or 
remedy was effective in changing the behavior of the targeted party and 
whether the penalty or remedy had any adverse impact on parties or 
interests not party to the dispute.
    (d) Consultations.--
            (1) Consultations with congressional advisers.--In the 
        course of negotiations conducted under this title, the United 
        States Trade Representative shall consult closely and on a 
        timely basis with, and keep fully apprised of the negotiations, 
        the Congressional Oversight Group convened under section 2107 
        and all committees of the House of Representatives and the 
        Senate with jurisdiction over laws that would be affected by a 
        trade agreement resulting from the negotiations.
            (2) Consultation before agreement initialed.--In the course 
        of negotiations conducted under this title, the United States 
        Trade Representative shall--
                    (A) consult closely and on a timely basis 
                (including immediately before initialing an agreement) 
                with, and keep fully apprised of the negotiations, the 
                congressional advisers for trade policy and 
                negotiations appointed under section 161 of the Trade 
                Act of 1974 (19 U.S.C. 2211), the Committee on Ways and 
                Means of the House of Representatives, the Committee on 
                Finance of the Senate, and the Congressional Oversight 
                Group convened under section 2107; and
                    (B) with regard to any negotiations and agreement 
                relating to agricultural trade, also consult closely 
                and on a timely basis (including immediately before 
                initialing an agreement) with, and keep fully apprised 
                of the negotiations, the Committee on Agriculture of 
                the House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate.
    (e) Adherence to Obligations Under Uruguay Round Agreements.--In 
determining whether to enter into negotiations with a particular 
country, the President shall take into account the extent to which that 
country has implemented, or has accelerated the implementation of, its 
obligations under the Uruguay Round Agreements.

SEC. 2103. TRADE AGREEMENTS AUTHORITY.

    (a) Agreements Regarding Tariff Barriers.--
            (1) In general.--Whenever the President determines that one 
        or more existing duties or other import restrictions of any 
        foreign country or the United States are unduly burdening and 
        restricting the foreign trade of the United States and that the 
        purposes, policies, priorities, and objectives of this title 
        will be promoted thereby, the President--
                    (A) may enter into trade agreements with foreign 
                countries before--
                            (i) June 1, 2005; or
                            (ii) June 1, 2007, if trade authorities 
                        procedures are extended under subsection (c); 
                        and
                    (B) may, subject to paragraphs (2) and (3), 
                proclaim--
                            (i) such modification or continuance of any 
                        existing duty,
                            (ii) such continuance of existing duty-free 
                        or excise treatment, or
                            (iii) such additional duties,
                as the President determines to be required or 
                appropriate to carry out any such trade agreement.
        The President shall notify the Congress of the President's 
        intention to enter into an agreement under this subsection.
            (2) Limitations.--No proclamation may be made under 
        paragraph (1) that--
                    (A) reduces any rate of duty (other than a rate of 
                duty that does not exceed 5 percent ad valorem on the 
                date of the enactment of this Act) to a rate of duty 
                which is less than 50 percent of the rate of such duty 
                that applies on such date of enactment;
                    (B) notwithstanding paragraph (6), reduces the rate 
                of duty below that applicable under the Uruguay Round 
                Agreements, on any agricultural product which was the 
                subject of tariff reductions by the United States as a 
                result of the Uruguay Round Agreements, for which the 
                rate of duty, pursuant to such Agreements, was reduced 
                on January 1, 1995, to a rate which was not less than 
                97.5 percent of the rate of duty that applied to such 
                article on December 31, 1994; or
                    (C) increases any rate of duty above the rate that 
                applied on the date of the enactment of this Act.
            (3) Aggregate reduction; exemption from staging.--
                    (A) Aggregate reduction.--Except as provided in 
                subparagraph (B), the aggregate reduction in the rate 
                of duty on any article which is in effect on any day 
                pursuant to a trade agreement entered into under 
                paragraph (1) shall not exceed the aggregate reduction 
                which would have been in effect on such day if--
                            (i) a reduction of 3 percent ad valorem or 
                        a reduction of one-tenth of the total 
                        reduction, whichever is greater, had taken 
                        effect on the effective date of the first 
                        reduction proclaimed under paragraph (1) to 
                        carry out such agreement with respect to such 
                        article; and
                            (ii) a reduction equal to the amount 
                        applicable under clause (i) had taken effect at 
                        1-year intervals after the effective date of 
                        such first reduction.
                    (B) Exemption from staging.--No staging is required 
                under subparagraph (A) with respect to a duty reduction 
                that is proclaimed under paragraph (1) for an article 
                of a kind that is not produced in the United States. 
                The United States International Trade Commission shall 
                advise the President of the identity of articles that 
                may be exempted from staging under this subparagraph.
            (4) Rounding.--If the President determines that such action 
        will simplify the computation of reductions under paragraph 
        (3), the President may round an annual reduction by an amount 
        equal to the lesser of--
                    (A) the difference between the reduction without 
                regard to this paragraph and the next lower whole 
                number; or
                    (B) one-half of 1 percent ad valorem.
            (5) Other limitations.--A rate of duty reduction that may 
        not be proclaimed by reason of paragraph (2) may take effect 
        only if a provision authorizing such reduction is included 
        within an implementing bill provided for under section 5 and 
        that bill is enacted into law.
            (6) Other tariff modifications.--Notwithstanding paragraphs 
        (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the 
        consultation and layover requirements of section 115 of the 
        Uruguay Round Agreements Act, the President may proclaim the 
        modification of any duty or staged rate reduction of any duty 
        set forth in Schedule XX, as defined in section 2(5) of that 
        Act, if the United States agrees to such modification or staged 
        rate reduction in a negotiation for the reciprocal elimination 
        or harmonization of duties under the auspices of the World 
        Trade Organization.
            (7) Authority under uruguay round agreements act not 
        affected.--Nothing in this subsection shall limit the authority 
        provided to the President under section 111(b) of the Uruguay 
        Round Agreements Act (19 U.S.C. 3521(b)).
    (b) Agreements Regarding Tariff and Nontariff Barriers.--
            (1) In general.--(A) Whenever the President determines 
        that--
                    (i) one or more existing duties or any other import 
                restriction of any foreign country or the United States 
                or any other barrier to, or other distortion of, 
                international trade unduly burdens or restricts the 
                foreign trade of the United States or adversely affects 
                the United States economy; or
                    (ii) the imposition of any such barrier or 
                distortion is likely to result in such a burden, 
                restriction, or effect;
        and that the purposes, policies, priorities, and objectives of 
        this title will be promoted thereby, the President may enter 
        into a trade agreement described in subparagraph (B) during the 
        period described in subparagraph (C).
            (B) The President may enter into a trade agreement under 
        subparagraph (A) with foreign countries providing for--
                    (i) the reduction or elimination of a duty, 
                restriction, barrier, or other distortion described in 
                subparagraph (A), or
                    (ii) the prohibition of, or limitation on the 
                imposition of, such barrier or other distortion.
            (C) The President may enter into a trade agreement under 
        this paragraph before--
                    (i) June 1, 2005; or
                    (ii) June 1, 2007, if trade authorities procedures 
                are extended under subsection (c).
            (2) Conditions.--A trade agreement may be entered into 
        under this subsection only if such agreement makes progress in 
        meeting the applicable objectives described in section 2102(a) 
        and (b) and the President satisfies the conditions set forth in 
        section 2104.
            (3) Bills qualifying for trade authorities procedures.--(A) 
        The provisions of section 151 of the Trade Act of 1974 (in this 
        title referred to as ``trade authorities procedures'') apply to 
        a bill of either House of Congress which contains provisions 
        described in subparagraph (B) to the same extent as such 
        section 151 applies to implementing bills under that section. A 
        bill to which this paragraph applies shall hereafter in this 
        title be referred to as an ``implementing bill''.
            (B) The provisions referred to in subparagraph (A) are--
                    (i) a provision approving a trade agreement entered 
                into under this subsection and approving the statement 
                of administrative action, if any, proposed to implement 
                such trade agreement; and
                    (ii) if changes in existing laws or new statutory 
                authority are required to implement such trade 
                agreement or agreements, provisions, necessary or 
                appropriate to implement such trade agreement or 
                agreements, either repealing or amending existing laws 
                or providing new statutory authority.
    (c) Extension Disapproval Process for Congressional Trade 
Authorities Procedures.--
            (1) In general.--Except as provided in section 2105(b)--
                    (A) the trade authorities procedures apply to 
                implementing bills submitted with respect to trade 
                agreements entered into under subsection (b) before 
                July 1, 2005; and
                    (B) the trade authorities procedures shall be 
                extended to implementing bills submitted with respect 
                to trade agreements entered into under subsection (b) 
                after June 30, 2005, and before July 1, 2007, if (and 
                only if)--
                            (i) the President requests such extension 
                        under paragraph (2); and
                            (ii) neither House of the Congress adopts 
                        an extension disapproval resolution under 
                        paragraph (5) before June 1, 2005.
            (2) Report to congress by the president.--If the President 
        is of the opinion that the trade authorities procedures should 
        be extended to implementing bills described in paragraph 
        (1)(B), the President shall submit to the Congress, not later 
        than March 1, 2005, a written report that contains a request 
        for such extension, together with--
                    (A) a description of all trade agreements that have 
                been negotiated under subsection (b) and the 
                anticipated schedule for submitting such agreements to 
                the Congress for approval;
                    (B) a description of the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                priorities, and objectives of this title, and a 
                statement that such progress justifies the continuation 
                of negotiations; and
                    (C) a statement of the reasons why the extension is 
                needed to complete the negotiations.
            (3) Report to congress by the advisory committee.--The 
        President shall promptly inform the Advisory Committee for 
        Trade Policy and Negotiations established under section 135 of 
        the Trade Act of 1974 (19 U.S.C. 2155) of the President's 
        decision to submit a report to the Congress under paragraph 
        (2). The Advisory Committee shall submit to the Congress as 
        soon as practicable, but not later than May 1, 2005, a written 
        report that contains--
                    (A) its views regarding the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                priorities, and objectives of this title; and
                    (B) a statement of its views, and the reasons 
                therefor, regarding whether the extension requested 
                under paragraph (2) should be approved or disapproved.
            (4) Status of reports.--The reports submitted to the 
        Congress under paragraphs (2) and (3), or any portion of such 
        reports, may be classified to the extent the President 
        determines appropriate.
            (5) Extension disapproval resolutions.--(A) For purposes of 
        paragraph (1), the term ``extension disapproval resolution'' 
        means a resolution of either House of the Congress, the sole 
        matter after the resolving clause of which is as follows: 
        ``That the ____ disapproves the request of the President for 
        the extension, under section 2103(c)(1)(B)(i) of the Bipartisan 
        Trade Promotion Authority Act of 2002, of the trade authorities 
        procedures under that Act to any implementing bill submitted 
        with respect to any trade agreement entered into under section 
        2103(b) of that Act after June 30, 2005.'', with the blank 
        space being filled with the name of the resolving House of the 
        Congress.
            (B) Extension disapproval resolutions--
                    (i) may be introduced in either House of the 
                Congress by any member of such House; and
                    (ii) shall be referred, in the House of 
                Representatives, to the Committee on Ways and Means 
                and, in addition, to the Committee on Rules.
            (C) The provisions of section 152(d) and (e) of the Trade 
        Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor 
        consideration of certain resolutions in the House and Senate) 
        apply to extension disapproval resolutions.
            (D) It is not in order for--
                    (i) the Senate to consider any extension 
                disapproval resolution not reported by the Committee on 
                Finance;
                    (ii) the House of Representatives to consider any 
                extension disapproval resolution not reported by the 
                Committee on Ways and Means and, in addition, by the 
                Committee on Rules; or
                    (iii) either House of the Congress to consider an 
                extension disapproval resolution after June 30, 2005.
    (d) Commencement of Negotiations.--In order to contribute to the 
continued economic expansion of the United States, the President shall 
commence negotiations covering tariff and nontariff barriers affecting 
any industry, product, or service sector, and expand existing sectoral 
agreements to countries that are not parties to those agreements, in 
cases where the President determines that such negotiations are 
feasible and timely and would benefit the United States. Such sectors 
include agriculture, commercial services, intellectual property rights, 
industrial and capital goods, government procurement, information 
technology products, environmental technology and services, medical 
equipment and services, civil aircraft, and infrastructure products. In 
so doing, the President shall take into account all of the principal 
negotiating objectives set forth in section 2102(b).

SEC. 2104. CONSULTATIONS AND ASSESSMENT.

    (a) Notice and Consultation Before Negotiation.--The President, 
with respect to any agreement that is subject to the provisions of 
section 2103(b), shall--
            (1) provide, at least 90 calendar days before initiating 
        negotiations, written notice to the Congress of the President's 
        intention to enter into the negotiations and set forth therein 
        the date the President intends to initiate such negotiations, 
        the specific United States objectives for the negotiations, and 
        whether the President intends to seek an agreement, or changes 
        to an existing agreement;
            (2) before and after submission of the notice, consult 
        regarding the negotiations with the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives, such other committees of the House and Senate 
        as the President deems appropriate, and the Congressional 
        Oversight group convened under section 2107; and
            (3) upon the request of a majority of the members of the 
        Congressional Oversight Group under section 2107(c), meet with 
        the Congressional Oversight Group before initiating the 
        negotiations or at any other time concerning the negotiations.
    (b) Negotiations Regarding Agriculture.--
            (1) In general.--Before initiating or continuing 
        negotiations the subject matter of which is directly related to 
        the subject matter under section 2102(b)(10)(A)(i) with any 
        country, the President shall assess whether United States 
        tariffs on agricultural products that were bound under the 
        Uruguay Round Agreements are lower than the tariffs bound by 
        that country. In addition, the President shall consider whether 
        the tariff levels bound and applied throughout the world with 
        respect to imports from the United States are higher than 
        United States tariffs and whether the negotiation provides an 
        opportunity to address any such disparity. The President shall 
        consult with the Committee on Ways and Means and the Committee 
        on Agriculture of the House of Representatives and the 
        Committee on Finance and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate concerning the results of 
        the assessment, whether it is appropriate for the United States 
        to agree to further tariff reductions based on the conclusions 
        reached in the assessment, and how all applicable negotiating 
        objectives will be met.
            (2) Special consultations on import sensitive products.--
        (A) Before initiating negotiations with regard to agriculture, 
        and, with respect to the Free Trade Area for the Americas and 
        negotiations with regard to agriculture under the auspices of 
        the World Trade Organization, as soon as practicable after the 
        enactment of this Act, the United States Trade Representative 
        shall--
                    (i) identify those agricultural products subject to 
                tariff reductions by the United States as a result of 
                the Uruguay Round Agreements, for which the rate of 
                duty was reduced on January 1, 1995, to a rate which 
                was not less than 97.5 percent of the rate of duty that 
                applied to such article on December 31, 1994;
                    (ii) consult with the Committee on Ways and Means 
                and the Committee on Agriculture of the House of 
                Representatives and the Committee on Finance and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate concerning--
                            (I) whether any further tariff reductions 
                        on the products identified under clause (i) 
                        should be appropriate, taking into account the 
                        impact of any such tariff reduction on the 
                        United States industry producing the product 
                        concerned; and
                            (II) whether the products so identified 
                        face unjustified sanitary or phytosanitary 
                        restrictions, including those not based on 
                        scientific principles in contravention of the 
                        Uruguay Round Agreements;
                    (iii) request that the International Trade 
                Commission prepare an assessment of the probable 
                economic effects of any such tariff reduction on the 
                United States industry producing the product concerned 
                and on the United States economy as a whole; and
                    (iv) upon complying with clauses (i), (ii), and 
                (iii), notify the Committee on Ways and Means and the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on Finance and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate of those products identified under clause 
                (i) for which the Trade Representative intends to seek 
                tariff liberalization in the negotiations and the 
                reasons for seeking such tariff liberalization.
            (B) If, after negotiations described in subparagraph (A) 
        are commenced--
                    (i) the United States Trade Representative 
                identifies any additional agricultural product 
                described in subparagraph (A)(i) for tariff reductions 
                which were not the subject of a notification under 
                subparagraph (A)(iv), or
                    (ii) any additional agricultural product described 
                in subparagraph (A)(i) is the subject of a request for 
                tariff reductions by a party to the negotiations,
        the Trade Representative shall, as soon as practicable, notify 
        the committees referred to in subparagraph (A)(iv) of those 
        products and the reasons for seeking such tariff reductions.
    (c) Negotiations Regarding Textiles.--Before initiating or 
continuing negotiations the subject matter of which is directly related 
to textiles and apparel products with any country, the President shall 
assess whether United States tariffs on textile and apparel products 
that were bound under the Uruguay Round Agreements are lower than the 
tariffs bound by that country and whether the negotiation provides an 
opportunity to address any such disparity. The President shall consult 
with the Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate concerning the results of 
the assessment, whether it is appropriate for the United States to 
agree to further tariff reductions based on the conclusions reached in 
the assessment, and how all applicable negotiating objectives will be 
met.
    (d) Consultation With Congress Before Agreements Entered Into.--
            (1) Consultation.--Before entering into any trade agreement 
        under section 2103(b), the President shall consult with--
                    (A) the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate;
                    (B) each other committee of the House and the 
                Senate, and each joint committee of the Congress, which 
                has jurisdiction over legislation involving subject 
                matters which would be affected by the trade agreement; 
                and
                    (C) the Congressional Oversight Group convened 
                under section 2107.
            (2) Scope.--The consultation described in paragraph (1) 
        shall include consultation with respect to--
                    (A) the nature of the agreement;
                    (B) how and to what extent the agreement will 
                achieve the applicable purposes, policies, priorities, 
                and objectives of this title; and
                    (C) the implementation of the agreement under 
                section 2105, including the general effect of the 
                agreement on existing laws.
    (e) Advisory Committee Reports.--The report required under section 
135(e)(1) of the Trade Act of 1974 regarding any trade agreement 
entered into under section 2103(a) or (b) of this Act shall be provided 
to the President, the Congress, and the United States Trade 
Representative not later than 30 days after the date on which the 
President notifies the Congress under section 2103(a)(1) or 
2105(a)(1)(A) of the President's intention to enter into the agreement.
    (f) ITC Assessment.--
            (1) In general.--The President, at least 90 calendar days 
        before the day on which the President enters into a trade 
        agreement under section 2103(b), shall provide the 
        International Trade Commission (referred to in this subsection 
        as ``the Commission'') with the details of the agreement as it 
        exists at that time and request the Commission to prepare and 
        submit an assessment of the agreement as described in paragraph 
        (2). Between the time the President makes the request under 
        this paragraph and the time the Commission submits the 
        assessment, the President shall keep the Commission current 
        with respect to the details of the agreement.
            (2) ITC assessment.--Not later than 90 calendar days after 
        the President enters into the agreement, the Commission shall 
        submit to the President and the Congress a report assessing the 
        likely impact of the agreement on the United States economy as 
        a whole and on specific industry sectors, including the impact 
        the agreement will have on the gross domestic product, exports 
        and imports, aggregate employment and employment opportunities, 
        the production, employment, and competitive position of 
        industries likely to be significantly affected by the 
        agreement, and the interests of United States consumers.
            (3) Review of empirical literature.--In preparing the 
        assessment, the Commission shall review available economic 
        assessments regarding the agreement, including literature 
        regarding any substantially equivalent proposed agreement, and 
        shall provide in its assessment a description of the analyses 
        used and conclusions drawn in such literature, and a discussion 
        of areas of consensus and divergence between the various 
        analyses and conclusions, including those of the Commission 
        regarding the agreement.

SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) In General.--
            (1) Notification and submission.--Any agreement entered 
        into under section 2103(b) shall enter into force with respect 
        to the United States if (and only if)--
                    (A) the President, at least 90 calendar days before 
                the day on which the President enters into the trade 
                agreement, notifies the House of Representatives and 
                the Senate of the President's intention to enter into 
                the agreement, and promptly thereafter publishes notice 
                of such intention in the Federal Register;
                    (B) within 60 days after entering into the 
                agreement, the President submits to the Congress a 
                description of those changes to existing laws that the 
                President considers would be required in order to bring 
                the United States into compliance with the agreement;
                    (C) after entering into the agreement, the 
                President submits to the Congress, on a day on which 
                both Houses of Congress are in session, a copy of the 
                final legal text of the agreement, together with--
                            (i) a draft of an implementing bill 
                        described in section 2103(b)(3);
                            (ii) a statement of any administrative 
                        action proposed to implement the trade 
                        agreement; and
                            (iii) the supporting information described 
                        in paragraph (2); and
                    (D) the implementing bill is enacted into law.
            (2) Supporting information.--The supporting information 
        required under paragraph (1)(C)(iii) consists of--
                    (A) an explanation as to how the implementing bill 
                and proposed administrative action will change or 
                affect existing law; and
                    (B) a statement--
                            (i) asserting that the agreement makes 
                        progress in achieving the applicable purposes, 
                        policies, priorities, and objectives of this 
                        title; and
                            (ii) setting forth the reasons of the 
                        President regarding--
                                    (I) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes, policies, and 
                                objectives referred to in clause (i);
                                    (II) whether and how the agreement 
                                changes provisions of an agreement 
                                previously negotiated;
                                    (III) how the agreement serves the 
                                interests of United States commerce;
                                    (IV) how the implementing bill 
                                meets the standards set forth in 
                                section 2103(b)(3); and
                                    (V) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes, policies, and 
                                objectives referred to in section 
                                2102(c) regarding the promotion of 
                                certain priorities.
            (3) Reciprocal benefits.--In order to ensure that a foreign 
        country that is not a party to a trade agreement entered into 
        under section 2103(b) does not receive benefits under the 
        agreement unless the country is also subject to the obligations 
        under the agreement, the implementing bill submitted with 
        respect to the agreement shall provide that the benefits and 
        obligations under the agreement apply only to the parties to 
        the agreement, if such application is consistent with the terms 
        of the agreement. The implementing bill may also provide that 
        the benefits and obligations under the agreement do not apply 
        uniformly to all parties to the agreement, if such application 
        is consistent with the terms of the agreement.
    (b) Limitations on Trade Authorities Procedures.--
            (1) For lack of notice or consultations.--
                    (A) In general.--The trade authorities procedures 
                shall not apply to any implementing bill submitted with 
                respect to a trade agreement or trade agreements 
                entered into under section 2103(b) if during the 60-day 
                period beginning on the date that one House of Congress 
                agrees to a procedural disapproval resolution for lack 
                of notice or consultations with respect to such trade 
                agreement or agreements, the other House separately 
                agrees to a procedural disapproval resolution with 
                respect to such trade agreement or agreements.
                    (B) Procedural disapproval resolution.--(i) For 
                purposes of this paragraph, the term ``procedural 
                disapproval resolution'' means a resolution of either 
                House of Congress, the sole matter after the resolving 
                clause of which is as follows: ``That the President has 
                failed or refused to notify or consult in accordance 
                with the Bipartisan Trade Promotion Authority Act of 
                2002 on negotiations with respect to ____________ and, 
                therefore, the trade authorities procedures under that 
                Act shall not apply to any implementing bill submitted 
                with respect to such trade agreement or agreements.'', 
                with the blank space being filled with a description of 
                the trade agreement or agreements with respect to which 
                the President is considered to have failed or refused 
                to notify or consult.
                    (ii) For purposes of clause (i), the President has 
                ``failed or refused to notify or consult in accordance 
                with the Bipartisan Trade Promotion Authority Act of 
                2002'' on negotiations with respect to a trade 
                agreement or trade agreements if--
                            (I) the President has failed or refused to 
                        consult (as the case may be) in accordance with 
                        section 2104 or 2105 with respect to the 
                        negotiations, agreement, or agreements;
                            (II) guidelines under section 2107(b) have 
                        not been developed or met with respect to the 
                        negotiations, agreement, or agreements;
                            (III) the President has not met with the 
                        Congressional Oversight Group pursuant to a 
                        request made under section 2107(c) with respect 
                        to the negotiations, agreement, or agreements; 
                        or
                            (IV) the agreement or agreements fail to 
                        make progress in achieving the purposes, 
                        policies, priorities, and objectives of this 
                        title.
            (2) Procedures for considering resolutions.--(A) Procedural 
        disapproval resolutions--
                    (i) in the House of Representatives--
                            (I) may be introduced by any Member of the 
                        House;
                            (II) shall be referred to the Committee on 
                        Ways and Means and, in addition, to the 
                        Committee on Rules; and
                            (III) may not be amended by either 
                        Committee; and
                    (ii) in the Senate may be introduced by any Member 
                of the Senate.
            (B) The provisions of section 152(d) and (e) of the Trade 
        Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor 
        consideration of certain resolutions in the House and Senate) 
        apply to a procedural disapproval resolution introduced with 
        respect to a trade agreement if no other procedural disapproval 
        resolution with respect to that trade agreement has previously 
        been considered under such provisions of section 152 of the 
        Trade Act of 1974 in that House of Congress during that 
        Congress.
            (C) It is not in order for the House of Representatives to 
        consider any procedural disapproval resolution not reported by 
        the Committee on Ways and Means and, in addition, by the 
        Committee on Rules.
    (c) Rules of House of Representatives and Senate.--Subsection (b) 
of this section and section 2103(c) are enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such are 
        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. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH NEGOTIATIONS 
              HAVE ALREADY BEGUN.

    (a) Certain Agreements.--Notwithstanding section 2103(b)(2), if an 
agreement to which section 2103(b) applies--
            (1) is entered into under the auspices of the World Trade 
        Organization,
            (2) is entered into with Chile,
            (3) is entered into with Singapore, or
            (4) establishes a Free Trade Area for the Americas,
and results from negotiations that were commenced before the date of 
the enactment of this Act, subsection (b) shall apply.
    (b) Treatment of Agreements.--In the case of any agreement to which 
subsection (a) applies--
            (1) the applicability of the trade authorities procedures 
        to implementing bills shall be determined without regard to the 
        requirements of section 2104(a) (relating only to 90 days 
        notice prior to initiating negotiations), and any procedural 
        disapproval resolution under section 2105(b)(1)(B) shall not be 
        in order on the basis of a failure or refusal to comply with 
        the provisions of section 2104(a); and
            (2) the President shall, as soon as feasible after the 
        enactment of this Act--
                    (A) notify the Congress of the negotiations 
                described in subsection (a), the specific United States 
                objectives in the negotiations, and whether the 
                President is seeking a new agreement or changes to an 
                existing agreement; and
                    (B) before and after submission of the notice, 
                consult regarding the negotiations with the committees 
                referred to in section 2104(a)(2) and the Congressional 
                Oversight Group.

SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.

    (a) Members and Functions.--
            (1) In general.--By not later than 60 days after the date 
        of the enactment of this Act, and not later than 30 days after 
        the convening of each Congress, the chairman of the Committee 
        on Ways and Means of the House of Representatives and the 
        chairman of the Committee on Finance of the Senate shall 
        convene the Congressional Oversight Group.
            (2) Membership from the house.--In each Congress, the 
        Congressional Oversight Group shall be comprised of the 
        following Members of the House of Representatives:
                    (A) The chairman and ranking member of the 
                Committee on Ways and Means, and 3 additional members 
                of such Committee (not more than 2 of whom are members 
                of the same political party).
                    (B) The chairman and ranking member, or their 
                designees, of the committees of the House of 
                Representatives which would have, under the Rules of 
                the House of Representatives, jurisdiction over 
                provisions of law affected by a trade agreement 
                negotiations for which are conducted at any time during 
                that Congress and to which this title would apply.
            (3) Membership from the senate.--In each Congress, the 
        Congressional Oversight Group shall also be comprised of the 
        following members of the Senate:
                    (A) The chairman and ranking Member of the 
                Committee on Finance and 3 additional members of such 
                Committee (not more than 2 of whom are members of the 
                same political party).
                    (B) The chairman and ranking member, or their 
                designees, of the committees of the Senate which would 
                have, under the Rules of the Senate, jurisdiction over 
                provisions of law affected by a trade agreement 
                negotiations for which are conducted at any time during 
                that Congress and to which this title would apply.
            (4) Accreditation.--Each member of the Congressional 
        Oversight Group described in paragraph (2)(A) and (3)(A) shall 
        be accredited by the United States Trade Representative on 
        behalf of the President as official advisers to the United 
        States delegation in negotiations for any trade agreement to 
        which this title applies. Each member of the Congressional 
        Oversight Group described in paragraph (2)(B) and (3)(B) shall 
        be accredited by the United States Trade Representative on 
        behalf of the President as official advisers to the United 
        States delegation in the negotiations by reason of which the 
        member is in the Congressional Oversight Group. The 
        Congressional Oversight Group shall consult with and provide 
        advice to the Trade Representative regarding the formulation of 
        specific objectives, negotiating strategies and positions, the 
        development of the applicable trade agreement, and compliance 
        and enforcement of the negotiated commitments under the trade 
        agreement.
            (5) Chair.--The Congressional Oversight Group shall be 
        chaired by the Chairman of the Committee on Ways and Means of 
        the House of Representatives and the Chairman of the Committee 
        on Finance of the Senate.
    (b) Guidelines.--
            (1) Purpose and revision.--The United States Trade 
        Representative, in consultation with the chairmen and ranking 
        minority members of the Committee on Ways and Means of the 
        House of Representatives and the Committee on Finance of the 
        Senate--
                    (A) shall, within 120 days after the date of the 
                enactment of this Act, develop written guidelines to 
                facilitate the useful and timely exchange of 
                information between the Trade Representative and the 
                Congressional Oversight Group established under this 
                section; and
                    (B) may make such revisions to the guidelines as 
                may be necessary from time to time.
            (2) Content.--The guidelines developed under paragraph (1) 
        shall provide for, among other things--
                    (A) regular, detailed briefings of the 
                Congressional Oversight Group regarding negotiating 
                objectives, including the promotion of certain 
                priorities referred to in section 2102(c), and 
                positions and the status of the applicable 
                negotiations, beginning as soon as practicable after 
                the Congressional Oversight Group is convened, with 
                more frequent briefings as trade negotiations enter the 
                final stage;
                    (B) access by members of the Congressional 
                Oversight Group, and staff with proper security 
                clearances, to pertinent documents relating to the 
                negotiations, including classified materials;
                    (C) the closest practicable coordination between 
                the Trade Representative and the Congressional 
                Oversight Group at all critical periods during the 
                negotiations, including at negotiation sites; and
                    (D) after the applicable trade agreement is 
                concluded, consultation regarding ongoing compliance 
                and enforcement of negotiated commitments under the 
                trade agreement.
    (c) Request for Meeting.--Upon the request of a majority of the 
Congressional Oversight Group, the President shall meet with the 
Congressional Oversight Group before initiating negotiations with 
respect to a trade agreement, or at any other time concerning the 
negotiations.

SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT REQUIREMENTS.

    (a) In General.--At the time the President submits to the Congress 
the final text of an agreement pursuant to section 2105(a)(1)(C), the 
President shall also submit a plan for implementing and enforcing the 
agreement. The implementation and enforcement plan shall include the 
following:
            (1) Border personnel requirements.--A description of 
        additional personnel required at border entry points, including 
        a list of additional customs and agricultural inspectors.
            (2) Agency staffing requirements.--A description of 
        additional personnel required by Federal agencies responsible 
        for monitoring and implementing the trade agreement, including 
        personnel required by the Office of the United States Trade 
        Representative, the Department of Commerce, the Department of 
        Agriculture (including additional personnel required to 
        implement sanitary and phytosanitary measures in order to 
        obtain market access for United States exports), the Department 
        of the Treasury, and such other agencies as may be necessary.
            (3) Customs infrastructure requirements.--A description of 
        the additional equipment and facilities needed by the United 
        States Customs Service.
            (4) Impact on state and local governments.--A description 
        of the impact the trade agreement will have on State and local 
        governments as a result of increases in trade.
            (5) Cost analysis.--An analysis of the costs associated 
        with each of the items listed in paragraphs (1) through (4).
    (b) Budget Submission.--The President shall include a request for 
the resources necessary to support the plan described in subsection (a) 
in the first budget that the President submits to the Congress after 
the submission of the plan.

SEC. 2109. COMMITTEE STAFF.

    The grant of trade promotion authority under this title is likely 
to increase the activities of the primary committees of jurisdiction in 
the area of international trade. In addition, the creation of the 
Congressional Oversight Group under section 2107 will increase the 
participation of a broader number of Members of Congress in the 
formulation of United States trade policy and oversight of the 
international trade agenda for the United States. The primary 
committees of jurisdiction should have adequate staff to accommodate 
these increases in activities.

SEC. 2110. CONFORMING AMENDMENTS.

    (a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111 
et seq.) is amended as follows:
            (1) Implementing bill.--
                    (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is 
                amended by striking ``section 1103(a)(1) of the Omnibus 
                Trade and Competitiveness Act of 1988, or section 282 
                of the Uruguay Round Agreements Act'' and inserting 
                ``section 282 of the Uruguay Round Agreements Act, or 
                section 2105(a)(1) of the Bipartisan Trade Promotion 
                Authority Act of 2002''.
                    (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is 
                amended by striking ``or section 282 of the Uruguay 
                Round Agreements Act'' and inserting ``, section 282 of 
                the Uruguay Round Agreements Act, or section 2105(a)(1) 
                of the Bipartisan Trade Promotion Authority Act of 
                2002''.
            (2) Advice from international trade commission.--Section 
        131 (19 U.S.C. 2151) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``section 
                        123 of this Act or section 1102 (a) or (c) of 
                        the Omnibus Trade and Competitiveness Act of 
                        1988,'' and inserting ``section 123 of this Act 
                        or section 2103(a) or (b) of the Bipartisan 
                        Trade Promotion Authority Act of 2002,''; and
                            (ii) in paragraph (2), by striking 
                        ``section 1102 (b) or (c) of the Omnibus Trade 
                        and Competitiveness Act of 1988'' and inserting 
                        ``section 2103(b) of the Bipartisan Trade 
                        Promotion Authority Act of 2002'';
                    (B) in subsection (b), by striking ``section 
                1102(a)(3)(A)'' and inserting ``section 2103(a)(3)(A) 
                of the Bipartisan Trade Promotion Authority Act of 
                2002''; and
                    (C) in subsection (c), by striking ``section 1102 
                of the Omnibus Trade and Competitiveness Act of 1988,'' 
                and inserting ``section 2103 of the Bipartisan Trade 
                Promotion Authority Act of 2002,''.
            (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
        (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
        striking ``section 1102 of the Omnibus Trade and 
        Competitiveness Act of 1988,'' each place it appears and 
        inserting ``section 2103 of the Bipartisan Trade Promotion 
        Authority Act of 2002,''.
            (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
        2154(b)) is amended by striking ``section 1102 of the Omnibus 
        Trade and Competitiveness Act of 1988'' and inserting ``section 
        2103 of the Bipartisan Trade Promotion Authority Act of 2002''.
            (5) Advice from private and public sectors.--Section 135 
        (19 U.S.C. 2155) is amended--
                    (A) in subsection (a)(1)(A), by striking ``section 
                1102 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 2103 of the Bipartisan 
                Trade Promotion Authority Act of 2002'';
                    (B) in subsection (e)(1)--
                            (i) by striking ``section 1102 of the 
                        Omnibus Trade and Competitiveness Act of 1988'' 
                        each place it appears and inserting ``section 
                        2103 of the Bipartisan Trade Promotion 
                        Authority Act of 2002''; and
                            (ii) by striking ``section 1103(a)(1)(A) of 
                        such Act of 1988'' and inserting ``section 
                        2105(a)(1)(A) of the Bipartisan Trade Promotion 
                        Authority Act of 2002''; and
                    (C) in subsection (e)(2), by striking ``section 
                1101 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 2102 of the Bipartisan 
                Trade Promotion Authority Act of 2002''.
            (6) Transmission of agreements to congress.--Section 162(a) 
        (19 U.S.C. 2212(a)) is amended by striking ``or under section 
        1102 of the Omnibus Trade and Competitiveness Act of 1988'' and 
        inserting ``or under section 2103 of the Bipartisan Trade 
        Promotion Authority Act of 2002''.
    (b) Application of Certain Provisions.--For purposes of applying 
sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 
2136(a), and 2137)--
            (1) any trade agreement entered into under section 2103 
        shall be treated as an agreement entered into under section 101 
        or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 
        2111 or 2112); and
            (2) any proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 2103 shall be 
        treated as a proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 102 of the Trade 
        Act of 1974.

SEC. 2111. DEFINITIONS.

    In this title:
            (1) Agreement on agriculture.--The term ``Agreement on 
        Agriculture'' means the agreement referred to in section 
        101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 
        3511(d)(2)).
            (2) Core labor standards.--The term ``core labor 
        standards'' means--
                    (A) the right of association;
                    (B) the right to organize and bargain collectively;
                    (C) a prohibition on the use of any form of forced 
                or compulsory labor;
                    (D) a minimum age for the employment of children; 
                and
                    (E) acceptable conditions of work with respect to 
                minimum wages, hours of work, and occupational safety 
                and health.
            (3) GATT 1994.--The term ``GATT 1994'' has the meaning 
        given that term in section 2 of the Uruguay Round Agreements 
        Act (19 U.S.C. 3501).
            (4) ILO.--The term ``ILO'' means the International Labor 
        Organization.
            (5) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen;
                    (B) a partnership, corporation, or other legal 
                entity organized under the laws of the United States; 
                and
                    (C) a partnership, corporation, or other legal 
                entity that is organized under the laws of a foreign 
                country and is controlled by entities described in 
                subparagraph (B) or United States citizens, or both.
            (6) Uruguay round agreements.--The term ``Uruguay Round 
        Agreements'' has the meaning given that term in section 2(7) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
            (7) World trade organization; wto.--The terms ``World Trade 
        Organization'' and ``WTO'' mean the organization established 
        pursuant to the WTO Agreement.
            (8) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
            (9) WTO member.--The term ``WTO member'' has the meaning 
        given that term in section 2(10) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(10)).
            (10) Other definitions.--
                    (A) Agreement on subsidies and countervailing 
                measures.--The term ``Agreement on Subsidies and 
                Countervailing Measures'' means the agreement referred 
                to in section 101(d)(12) of the Uruguay Round 
                Agreements Act (19 U.S.C. 3511(d)(12)).
                    (B) Antidumping agreement.--The term ``Antidumping 
                Agreement`` means the Agreement on Implementation of 
                Article VI of the General Agreement on Tariffs and 
                Trade 1994 referred to in section 101(d)(7) of the 
                Uruguay Round Agreements Act (19 U.S.C. 3511(d)(7)).

                DIVISION C--ANDEAN TRADE PREFERENCE ACT

                  TITLE XXXI--ANDEAN TRADE PREFERENCE

SEC. 3101. SHORT TITLE.

    This title may be cited as the ``Andean Trade Promotion and Drug 
Eradication Act''.

SEC. 3102. FINDINGS.

    Congress makes the following findings:
            (1) Since the Andean Trade Preference Act was enacted in 
        1991, it has had a positive impact on United States trade with 
        Bolivia, Colombia, Ecuador, and Peru. Two-way trade has 
        doubled, with the United States serving as the leading source 
        of imports and leading export market for each of the Andean 
        beneficiary countries. This has resulted in increased jobs and 
        expanded export opportunities in both the United States and the 
        Andean region.
            (2) The Andean Trade Preference Act has been a key element 
        in the United States counternarcotics strategy in the Andean 
        region, promoting export diversification and broad-based 
        economic development that provides sustainable economic 
        alternatives to drug-crop production, strengthening the 
        legitimate economies of Andean countries and creating viable 
        alternatives to illicit trade in coca.
            (3) Notwithstanding the success of the Andean Trade 
        Preference Act, the Andean region remains threatened by 
        political and economic instability and fragility, vulnerable to 
        the consequences of the drug war and fierce global competition 
        for its legitimate trade.
            (4) The continuing instability in the Andean region poses a 
        threat to the security interests of the United States and the 
        world. This problem has been partially addressed through 
        foreign aid, such as Plan Colombia, enacted by Congress in 
        2000. However, foreign aid alone is not sufficient. Enhancement 
        of legitimate trade with the United States provides an 
        alternative means for reviving and stabilizing the economies in 
        the Andean region.
            (5) The Andean Trade Preference Act constitutes a tangible 
        commitment by the United States to the promotion of prosperity, 
        stability, and democracy in the beneficiary countries.
            (6) Renewal and enhancement of the Andean Trade Preference 
        Act will bolster the confidence of domestic private enterprise 
        and foreign investors in the economic prospects of the region, 
        ensuring that legitimate private enterprise can be the engine 
        of economic development and political stability in the region.
            (7) Each of the Andean beneficiary countries is committed 
        to conclude negotiation of a Free Trade Area of the Americas by 
        the year 2005, as a means of enhancing the economic security of 
        the region.
            (8) Temporarily enhancing trade benefits for Andean 
        beneficiary countries will promote the growth of free 
        enterprise and economic opportunity in these countries and 
        serve the security interests of the United States, the region, 
        and the world.

SEC. 3103. ARTICLES ELIGIBLE FOR PREFERENTIAL TREATMENT.

    (a) Eligibility of Certain Articles.--Section 204 of the Andean 
Trade Preference Act (19 U.S.C. 3203) is amended--
            (1) by striking subsection (c) and redesignating 
        subsections (d) through (g) as subsections (c) through (f), 
        respectively; and
            (2) by amending subsection (b) to read as follows:
    ``(b) Exceptions and Special Rules.--
            ``(1) Certain articles that are not import-sensitive.--The 
        President may proclaim duty-free treatment under this title for 
        any article described in subparagraph (A), (B), (C), or (D) 
        that is the growth, product, or manufacture of an ATPDEA 
        beneficiary country and that meets the requirements of this 
        section, if the President determines that such article is not 
        import-sensitive in the context of imports from ATPDEA 
        beneficiary countries:
                    ``(A) Footwear not designated at the time of the 
                effective date of this Act as eligible for the purpose 
                of the generalized system of preferences under title V 
                of the Trade Act of 1974.
                    ``(B) Petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 2710 of 
                the HTS.
                    ``(C) Watches and watch parts (including cases, 
                bracelets and straps), of whatever type including, but 
                not limited to, mechanical, quartz digital or quartz 
                analog, if such watches or watch parts contain any 
                material which is the product of any country with 
                respect to which HTS column 2 rates of duty apply.
                    ``(D) Handbags, luggage, flat goods, work gloves, 
                and leather wearing apparel that were not designated on 
                August 5, 1983, as eligible articles for purposes of 
                the generalized system of preferences under title V of 
                the Trade Act of 1974.
            ``(2) Exclusions.--Subject to paragraph (3), duty-free 
        treatment under this title may not be extended to--
                    ``(A) textiles and apparel articles which were not 
                eligible articles for purposes of this title on January 
                1, 1994, as this title was in effect on that date;
                    ``(B) rum and tafia classified in subheading 
                2208.40 of the HTS; or
                    ``(C) sugars, syrups, and sugar-containing products 
                subject to over-quota duty rates under applicable 
                tariff-rate quotas.
            ``(3) Apparel articles.--
                    ``(A) In general.--Apparel articles that are 
                imported directly into the customs territory of the 
                United States from an ATPDEA beneficiary country shall 
                enter the United States free of duty and free of any 
                quantitative restrictions, limitations, or consultation 
                levels, but only if such articles are described in 
                subparagraph (B).
                    ``(B) Covered articles.--The apparel articles 
                referred to in subparagraph (A) are the following:
                            ``(i) Apparel articles assembled from 
                        products of the united states and atpdea 
                        beneficiary countries or products not available 
                        in commercial quantities.--Apparel articles 
                        sewn or otherwise assembled in 1 or more ATPDEA 
                        beneficiary countries, or the United States, or 
                        both, exclusively from any one or any 
                        combination of the following:
                                    ``(I) Fabrics or fabric components 
                                formed, or components knit-to-shape, in 
                                the United States, from yarns formed in 
                                the United States or 1 or more ATPDEA 
                                beneficiary countries (including 
                                fabrics not formed from yarns, if such 
                                fabrics are classifiable under heading 
                                5602 or 5603 of the HTS and are formed 
                                in the United States). Apparel articles 
                                shall qualify under this subclause only 
                                if all dyeing, printing, and finishing 
                                of the fabrics from which the articles 
                                are assembled, if the fabrics are knit 
                                fabrics, is carried out in the United 
                                States. Apparel articles shall qualify 
                                under this subclause only if all 
                                dyeing, printing, and finishing of the 
                                fabrics from which the articles are 
                                assembled, if the fabrics are woven 
                                fabrics, is carried out in the United 
                                States.
                                    ``(II) Fabrics or fabric components 
                                formed or components knit-to-shape, in 
                                1 or more ATPDEA beneficiary countries, 
                                from yarns formed in 1 or more ATPDEA 
                                beneficiary countries, if such fabrics 
                                (including fabrics not formed from 
                                yarns, if such fabrics are classifiable 
                                under heading 5602 or 5603 of the HTS 
                                and are formed in 1 or more ATPDEA 
                                beneficiary countries) or components 
                                are in chief weight of llama or alpaca.
                                    ``(III) Fabrics or yarn that is not 
                                formed in the United States or in one 
                                or more ATPDEA beneficiary countries, 
                                to the extent that apparel articles of 
                                such fabrics or yarn would be eligible 
                                for preferential treatment, without 
                                regard to the source of the fabrics or 
                                yarn, under Annex 401 of the NAFTA.
                            ``(ii) Additional fabrics.--At the request 
                        of any interested party, the President is 
                        authorized to proclaim additional fabrics and 
                        yarns as eligible for preferential treatment 
                        under clause (i)(III) if--
                                    ``(I) the President determines that 
                                such fabrics or yarns cannot be 
                                supplied by the domestic industry in 
                                commercial quantities in a timely 
                                manner;
                                    ``(II) the President has obtained 
                                advice regarding the proposed action 
                                from the appropriate advisory committee 
                                established under section 135 of the 
                                Trade Act of 1974 (19 U.S.C. 2155) and 
                                the United States International Trade 
                                Commission;
                                    ``(III) within 60 days after the 
                                request, 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 the action 
                                proposed to be proclaimed and the 
                                reasons for such action, and the advice 
                                obtained under subclause (II);
                                    ``(IV) a period of 60 calendar 
                                days, beginning with the first day on 
                                which the President has met the 
                                requirements of subclause (III), has 
                                expired; and
                                    ``(V) the President has consulted 
                                with such committees regarding the 
                                proposed action during the period 
                                referred to in subclause (III).
                            ``(iii) Apparel articles assembled in 1 or 
                        more atpdea beneficiary countries from regional 
                        fabrics or regional components.--(I) Subject to 
                        the limitation set forth in subclause (II), 
                        apparel articles sewn or otherwise assembled in 
                        1 or more ATPDEA beneficiary countries from 
                        fabrics or from fabric components formed or 
                        from components knit-to-shape, in 1 or more 
                        ATPDEA beneficiary countries, from yarns formed 
                        in the United States or 1 or more ATPDEA 
                        beneficiary countries (including fabrics not 
                        formed from yarns, if such fabrics are 
                        classifiable under heading 5602 or 5603 of the 
                        HTS and are formed in 1 or more ATPDEA 
                        beneficiary countries), whether or not the 
                        apparel articles are also made from any of the 
                        fabrics, fabric components formed, or 
                        components knit-to-shape described in clause 
                        (i).
                            ``(II) The preferential treatment referred 
                        to in subclause (I) shall be extended in the 1-
                        year period beginning December 1, 2001, and in 
                        each of the 5 succeeding 1-year periods, to 
                        imports of apparel articles in an amount not to 
                        exceed the applicable percentage of the 
                        aggregate square meter equivalents of all 
                        apparel articles imported into the United 
                        States in the preceding 12-month period for 
                        which data are available.
                            ``(III) For purposes of subclause (II), the 
                        term `applicable percentage' means 3 percent 
                        for the 1-year period beginning December 1, 
                        2001, increased in each of the 5 succeeding 1-
                        year periods by equal increments, so that for 
                        the period beginning December 1, 2005, the 
                        applicable percentage does not exceed 6 
                        percent.
                            ``(iv) Handloomed, handmade, and folklore 
                        articles.--A handloomed, handmade, or folklore 
                        article of an ATPDEA beneficiary country 
                        identified under subparagraph (C) that is 
                        certified as such by the competent authority of 
                        such beneficiary country.
                            ``(v) Special rules.--
                                    ``(I) Exception for findings and 
                                trimmings.--An article otherwise 
                                eligible for preferential treatment 
                                under this paragraph shall not be 
                                ineligible for such treatment because 
                                the article contains findings or 
                                trimmings of foreign origin, if such 
                                findings and trimmings do not exceed 25 
                                percent of the cost of the components 
                                of the assembled product. Examples of 
                                findings and trimmings are sewing 
                                thread, hooks and eyes, snaps, buttons, 
                                `bow buds', decorative lace, trim, 
                                elastic strips, zippers, including 
                                zipper tapes and labels, and other 
                                similar products.
                                    ``(II) Certain interlining.--(aa) 
                                An article otherwise eligible for 
                                preferential treatment under this 
                                paragraph shall not be ineligible for 
                                such treatment because the article 
                                contains certain interlinings of 
                                foreign origin, if the value of such 
                                interlinings (and any findings and 
                                trimmings) does not exceed 25 percent 
                                of the cost of the components of the 
                                assembled article.
                                    ``(bb) Interlinings eligible for 
                                the treatment described in division 
                                (aa) include only a chest type plate, 
                                `hymo' piece, or `sleeve header', of 
                                woven or weft-inserted warp knit 
                                construction and of coarse animal hair 
                                or man-made filaments.
                                    ``(cc) The treatment described in 
                                this subclause shall terminate if the 
                                President makes a determination that 
                                United States manufacturers are 
                                producing such interlinings in the 
                                United States in commercial quantities.
                                    ``(III) De minimis rule.--An 
                                article that would otherwise be 
                                ineligible for preferential treatment 
                                under this subparagraph because the 
                                article contains fibers or yarns not 
                                wholly formed in the United States or 
                                in one or more ATPDEA beneficiary 
                                countries shall not be ineligible for 
                                such treatment if the total weight of 
                                all such fibers or yarns is not more 
                                than 7 percent of the total weight of 
                                the good.
                    ``(C) Handloomed, handmade, and folklore 
                articles.--For purposes of subparagraph (B)(iv), the 
                President shall consult with representatives of the 
                ATPDEA beneficiary countries concerned for the purpose 
                of identifying particular textile and apparel goods 
                that are mutually agreed upon as being handloomed, 
                handmade, or folklore goods of a kind described in 
                section 2.3(a), (b), or (c) of the Annex or Appendix 
                3.1.B.11 of the Annex.
                    ``(D) Penalties for transshipment.--
                            ``(i) Penalties for exporters.--If the 
                        President determines, based on sufficient 
                        evidence, that an exporter has engaged in 
                        transshipment with respect to apparel articles 
                        from an ATPDEA beneficiary country, then the 
                        President shall deny all benefits under this 
                        title to such exporter, and any successor of 
                        such exporter, for a period of 2 years.
                            ``(ii) Penalties for countries.--Whenever 
                        the President finds, based on sufficient 
                        evidence, that transshipment has occurred, the 
                        President shall request that the ATPDEA 
                        beneficiary country or countries through whose 
                        territory the transshipment has occurred take 
                        all necessary and appropriate actions to 
                        prevent such transshipment. If the President 
                        determines that a country is not taking such 
                        actions, the President shall reduce the 
                        quantities of apparel articles that may be 
                        imported into the United States from such 
                        country by the quantity of the transshipped 
                        articles multiplied by 3, to the extent 
                        consistent with the obligations of the United 
                        States under the WTO.
                            ``(iii) Transshipment described.--
                        Transshipment within the meaning of this 
                        subparagraph has occurred when preferential 
                        treatment under subparagraph (A) has been 
                        claimed for an apparel article on the basis of 
                        material false information concerning the 
                        country of origin, manufacture, processing, or 
                        assembly of the article or any of its 
                        components. For purposes of this clause, false 
                        information is material if disclosure of the 
                        true information would mean or would have meant 
                        that the article is or was ineligible for 
                        preferential treatment under subparagraph (A).
                    ``(E) Bilateral emergency actions.--
                            ``(i) In general.--The President may take 
                        bilateral emergency tariff actions of a kind 
                        described in section 4 of the Annex with 
                        respect to any apparel article imported from an 
                        ATPDEA beneficiary country if the application 
                        of tariff treatment under subparagraph (A) to 
                        such article results in conditions that would 
                        be cause for the taking of such actions under 
                        such section 4 with respect to a like article 
                        described in the same 8-digit subheading of the 
                        HTS that is imported from Mexico.
                            ``(ii) Rules relating to bilateral 
                        emergency action.--For purposes of applying 
                        bilateral emergency action under this 
                        subparagraph--
                                    ``(I) the requirements of paragraph 
                                (5) of section 4 of the Annex (relating 
                                to providing compensation) shall not 
                                apply;
                                    ``(II) the term `transition period' 
                                in section 4 of the Annex shall mean 
                                the period ending December 31, 2006; 
                                and
                                    ``(III) the requirements to consult 
                                specified in section 4 of the Annex 
                                shall be treated as satisfied if the 
                                President requests consultations with 
                                the ATPDEA beneficiary country in 
                                question and the country does not agree 
                                to consult within the time period 
                                specified under section 4.
            ``(4) Customs procedures.--
                    ``(A) In general.--
                            ``(i) Regulations.--Any importer that 
                        claims preferential treatment under paragraph 
                        (1) or (3) shall comply with customs procedures 
                        similar in all material respects to the 
                        requirements of Article 502(1) of the NAFTA as 
                        implemented pursuant to United States law, in 
                        accordance with regulations promulgated by the 
                        Secretary of the Treasury.
                            ``(ii) Determination.--
                                    ``(I) In general.--In order to 
                                qualify for the preferential treatment 
                                under paragraph (1) or (3) and for a 
                                Certificate of Origin to be valid with 
                                respect to any article for which such 
                                treatment is claimed, there shall be in 
                                effect a determination by the President 
                                that each country described in 
                                subclause (II)--
                                            ``(aa) has implemented and 
                                        follows; or
                                            ``(bb) is making 
                                        substantial progress toward 
                                        implementing and following,
                                procedures and requirements similar in 
                                all material respects to the relevant 
                                procedures and requirements under 
                                chapter 5 of the NAFTA.
                                    ``(II) Country described.--A 
                                country is described in this subclause 
                                if it is an ATPDEA beneficiary 
                                country--
                                            ``(aa) from which the 
                                        article is exported; or
                                            ``(bb) in which materials 
                                        used in the production of the 
                                        article originate or in which 
                                        the article or such materials 
                                        undergo production that 
                                        contributes to a claim that the 
                                        article is eligible for 
                                        preferential treatment under 
                                        paragraph (1) or (3).
                    ``(B) Certificate of origin.--The Certificate of 
                Origin that otherwise would be required pursuant to the 
                provisions of subparagraph (A) shall not be required in 
                the case of an article imported under paragraph (1) or 
                (3) if such Certificate of Origin would not be required 
                under Article 503 of the NAFTA (as implemented pursuant 
                to United States law), if the article were imported 
                from Mexico.
            ``(5) Definitions.--In this subsection--
                    ``(A) Annex.--The term `the Annex' means Annex 300-
                B of the NAFTA.
                    ``(B) ATPDEA beneficiary country.--The term `ATPDEA 
                beneficiary country' means any `beneficiary country', 
                as defined in section 203(a)(1) of this title, which 
                the President designates as an ATPDEA beneficiary 
                country, taking into account the criteria contained in 
                subsections (c) and (d) of section 203 and other 
                appropriate criteria, including the following:
                            ``(i) Whether the beneficiary country has 
                        demonstrated a commitment to--
                                    ``(I) undertake its obligations 
                                under the WTO, including those 
                                agreements listed in section 101(d) of 
                                the Uruguay Round Agreements Act, on or 
                                ahead of schedule; and
                                    ``(II) participate in negotiations 
                                toward the completion of the FTAA or 
                                another free trade agreement.
                            ``(ii) The extent to which the country 
                        provides protection of intellectual property 
                        rights consistent with or greater than the 
                        protection afforded under the Agreement on 
                        Trade-Related Aspects of Intellectual Property 
                        Rights described in section 101(d)(15) of the 
                        Uruguay Round Agreements Act.
                            ``(iii) The extent to which the country 
                        provides internationally recognized worker 
                        rights, including--
                                    ``(I) the right of association;
                                    ``(II) the right to organize and 
                                bargain collectively;
                                    ``(III) a prohibition on the use of 
                                any form of forced or compulsory labor;
                                    ``(IV) a minimum age for the 
                                employment of children; and
                                    ``(V) acceptable conditions of work 
                                with respect to minimum wages, hours of 
                                work, and occupational safety and 
                                health;
                            ``(iv) Whether the country has implemented 
                        its commitments to eliminate the worst forms of 
                        child labor, as defined in section 507(6) of 
                        the Trade Act of 1974.
                            ``(v) The extent to which the country has 
                        met the counternarcotics certification criteria 
                        set forth in section 490 of the Foreign 
                        Assistance Act of 1961 (22 U.S.C. 2291j) for 
                        eligibility for United States assistance.
                            ``(vi) The extent to which the country has 
                        taken steps to become a party to and implements 
                        the Inter-American Convention Against 
                        Corruption.
                            ``(vii) The extent to which the country--
                                    ``(I) applies transparent, 
                                nondiscriminatory, and competitive 
                                procedures in government procurement 
                                equivalent to those contained in the 
                                Agreement on Government Procurement 
                                described in section 101(d)(17) of the 
                                Uruguay Round Agreements Act; and
                                    ``(II) contributes to efforts in 
                                international fora to develop and 
                                implement international rules in 
                                transparency in government procurement.
                    ``(C) NAFTA.--The term `NAFTA' means the North 
                American Free Trade Agreement entered into between the 
                United States, Mexico, and Canada on December 17, 1992.
                    ``(D) WTO.--The term `WTO' has the meaning given 
                that term in section 2 of the Uruguay Round Agreements 
                Act (19 U.S.C. 3501).
                    ``(E) ATPDEA.--The term `ATPDEA' means the Andean 
                Trade Promotion and Drug Eradication Act.''.
    (b) Determination Regarding Retention of Designation.--Section 
203(e)(1) of the Andean Trade Preference Act (19 U.S.C. 3202(e)(1)) is 
amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (2) by inserting ``(A)'' after ``(1)''; and
            (3) by adding at the end the following:
    ``(B) The President may, after the requirements of paragraph (2) 
have been met--
            ``(i) withdraw or suspend the designation of any country as 
        an ATPDEA beneficiary country, or
            ``(ii) withdraw, suspend, or limit the application of 
        preferential treatment under section 204(b)(1) or (3) to any 
        article of any country,
if, after such designation, the President determines that, as a result 
of changed circumstances, the performance of such country is not 
satisfactory under the criteria set forth in section 204(b)(5)(B).''.
    (c) Conforming Amendments.--(1) Section 202 of the Andean Trade 
Preference Act (19 U.S.C. 3201) is amended by inserting ``(or other 
preferential treatment)'' after ``treatment''.
    (2) Section 204(a) of the Andean Trade Preference Act (19 U.S.C. 
3203(a)) is amended--
            (A) in paragraph (1), by inserting ``(or otherwise provided 
        for)'' after ``eligibility''; and
            (B) in paragraph (2), by striking ``subsection (a)'' and 
        inserting ``paragraph (1)''.

SEC. 3104. TERMINATION OF PREFERENTIAL TREATMENT.

    Section 208 of the Andean Trade Preference Act (19 U.S.C. 3206) is 
amended to read as follows:

``SEC. 208. TERMINATION OF PREFERENTIAL TREATMENT.

    ``No duty-free treatment or other preferential treatment extended 
to beneficiary countries under this title shall remain in effect after 
December 31, 2006.''.

SEC. 3105. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC RECOVERY 
              ACT.

    Section 213(b)(2)(A) of the Carribean Basin Economic Recovery Act 
(19 U.S.C. 2703(b)(2)(A)) is amended as follows:
            (1) Clause (i) is amended--
                    (A) by striking the matter preceding subclause (I) 
                and inserting the following:
                            ``(i) Apparel articles assembled in one or 
                        more cbtpa beneficiary countries.--Apparel 
                        articles sewn or otherwise assembled in one or 
                        more CBTPA beneficiary countries from fabrics 
                        wholly formed and cut, or from components knit-
                        to-shape, in the United States from yarns 
                        wholly formed in the United States, (including 
                        fabrics not formed from yarns, if such fabrics 
                        are classifiable under heading 5602 or 5603 of 
                        the HTS and are wholly formed and cut in the 
                        United States) that are--''; and
                    (B) by adding at the end the following:
                        ``Apparel articles shall qualify under the 
                        preceding sentence only if all dyeing, 
                        printing, and finishing of the fabrics from 
                        which the articles are assembled, if the 
                        fabrics are knit fabrics, is carried out in the 
                        United States. Apparel articles shall qualify 
                        under the first sentence of this clause only if 
                        all dyeing, printing, and finishing of the 
                        fabrics from which the articles are assembled, 
                        if the fabrics are woven fabrics, is carried 
                        out in the United States.''.
            (2) Clause (ii) is amended to read as follows:
                            ``(ii) Other apparel articles assembled in 
                        one or more cbtpa beneficiary countries.--
                        Apparel articles sewn or otherwise assembled in 
                        one or more CBTPA beneficiary countries with 
                        thread formed in the United States from fabrics 
                        wholly formed in the United States and cut in 
                        one or more CBTPA beneficiary countries from 
                        yarns wholly formed in the United States, or 
                        from components knit-to-shape in the United 
                        States from yarns wholly formed in the United 
                        States, or both (including fabrics not formed 
                        from yarns, if such fabrics are classifiable 
                        under heading 5602 or 5603 of the HTS and are 
                        wholly formed in the United States). Apparel 
                        articles shall qualify under the preceding 
                        sentence only if all dyeing, printing, and 
                        finishing of the fabrics from which the 
                        articles are assembled, if the fabrics are knit 
                        fabrics, is carried out in the United States. 
                        Apparel articles shall qualify under the first 
                        sentence of this clause only if all dyeing, 
                        printing, and finishing of the fabrics from 
                        which the articles are assembled, if the 
                        fabrics are woven fabrics, is carried out in 
                        the United States.''.
            (3) Clause (iii)(II) is amended to read as follows:
                            ``(II) The amount referred to in subclause 
                        (I) is as follows:
                                    ``(aa) 290,000,000 square meter 
                                equivalents during the 1-year period 
                                beginning on October 1, 2001.
                                    ``(bb) 500,000,000 square meter 
                                equivalents during the 1-year period 
                                beginning on October 1, 2002.
                                    ``(cc) 850,000,000 square meter 
                                equivalents during the 1-year period 
                                beginning on October 1, 2003.
                                    ``(dd) 970,000,000 square meter 
                                equivalents in each succeeding 1-year 
                                period through September 30, 2008.''.
            (4) Clause (iii)(IV) is amended to read as follows:
                            ``(IV) The amount referred to in subclause 
                        (III) is as follows:
                                    ``(aa) 4,872,000 dozen during the 
                                1-year period beginning on October 1, 
                                2001.
                                    ``(bb) 9,000,000 dozen during the 
                                1-year period beginning on October 1, 
                                2002.
                                    ``(cc) 10,000,000 dozen during the 
                                1-year period beginning on October 1, 
                                2003.
                                    ``(dd) 12,000,000 dozen in each 
                                succeeding 1-year period through 
                                September 30, 2008.''.
            (5) Section 213(b)(2)(A) of such Act is further amended by 
        adding at the end the following new clause:
                            ``(ix) Apparel articles assembled in one or 
                        more cbtpa beneficiary countries from united 
                        states and cbtpa beneficiary country 
                        components.--Apparel articles sewn or otherwise 
                        assembled in one or more CBTPA beneficiary 
                        countries with thread formed in the United 
                        States from components cut in the United States 
                        and in one or more CBTPA beneficiary countries 
                        from fabric wholly formed in the United States 
                        from yarns wholly formed in the United States, 
                        or from components knit-to-shape in the United 
                        States and one or more CBTPA beneficiary 
                        countries from yarns wholly formed in the 
                        United States, or both (including fabrics not 
                        formed from yarns, if such fabrics are 
                        classifiable under heading 5602 or 5603 of the 
                        HTS).''.

SEC. 3106. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT.

    Section 112(b) of the African Growth and Opportunity Act (19 U.S.C. 
3721(b)) is amended as follows:
            (1) Paragraph (1) is amended by amending the matter 
        preceding subparagraph (A) to read as follows:
            ``(1) Apparel articles assembled in one or more beneficiary 
        sub-saharan african countries.--Apparel articles sewn or 
        otherwise assembled in one or more beneficiary sub-Saharan 
        African countries from fabrics wholly formed and cut, or from 
        components knit-to-shape, in the United States from yarns 
        wholly formed in the United States, (including fabrics not 
        formed from yarns, if such fabrics are classifiable under 
        heading 5602 or 5603 of the HTS and are wholly formed and cut 
        in the United States) that are--''.
            (2) Paragraph (2) is amended to read as follows:
            ``(2) Other apparel articles assembled in one or more 
        beneficiary sub-saharan african countries.--Apparel articles 
        sewn or otherwise assembled in one or more beneficiary sub-
        Saharan African countries with thread formed in the United 
        States from fabrics wholly formed in the United States and cut 
        in one or more beneficiary sub-Saharan African countries from 
        yarns wholly formed in the United States, or from components 
        knit-to-shape in the United States from yarns wholly formed in 
        the United States, or both (including fabrics not formed from 
        yarns, if such fabrics are classifiable under heading 5602 or 
        5603 of the HTS and are wholly formed in the United States).''.
            (3) Paragraph (3) is amended--
                    (A) by amending the matter preceding subparagraph 
                (A) to read as follows:
            ``(3) Apparel articles from regional fabric or yarns.--
        Apparel articles wholly assembled in one or more beneficiary 
        sub-Saharan African countries from fabric wholly formed in one 
        or more beneficiary sub-Saharan African countries from yarns 
        originating either in the United States or one or more 
        beneficiary sub-Saharan African countries (including fabrics 
        not formed from yarns, if such fabrics are classified under 
        heading 5602 or 5603 of the HTS and are wholly formed in one or 
        more beneficiary sub-Saharan African countries), or from 
        components knit-to-shape in one or more beneficiary sub-Saharan 
        African countries from yarns originating either in the United 
        States or one or more beneficiary sub-Saharan African 
        countries, or apparel articles wholly formed on seamless 
        knitting machines in a beneficiary sub-Saharan African country 
        from yarns originating either in the United States or one or 
        more beneficiary sub-Saharan African countries, subject to the 
        following:'';
                    (B) in subparagraph (A)(ii)--
                            (i) by striking ``1.5'' and inserting 
                        ``3''; and
                            (ii) by striking ``3.5'' and inserting 
                        ``7''; and
                    (C) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Special rules for lesser developed 
                countries.--
                            ``(i) In general.--Subject to subparagraph 
                        (A), preferential treatment under this 
                        paragraph shall be extended through September 
                        30, 2004, for apparel articles wholly 
                        assembled, or knit-to-shape and wholly 
                        assembled, or both, in one or more lesser 
                        developed beneficiary sub-Saharan African 
                        countries regardless of the country of origin 
                        of the fabric or the yarn used to make such 
                        articles.
                            ``(ii) Lesser developed beneficiary sub-
                        saharan african country.--For purposes of 
                        clause (i), the term `lesser developed 
                        beneficiary sub-Saharan African country' 
                        means--
                                    ``(I) a beneficiary sub-Saharan 
                                African country that had a per capita 
                                gross national product of less than 
                                $1,500 in 1998, as measured by the 
                                International Bank for Reconstruction 
                                and Development;
                                    ``(II) Botswana; and
                                    ``(III) Namibia.''.
            (4) Paragraph (4)(B) is amended by striking ``18.5'' and 
        inserting ``21.5''.
            (5) Section 112(b) of such Act is further amended by adding 
        at the end the following new paragraph:
            ``(7) Apparel articles assembled in one or more beneficiary 
        sub-saharan african countries from united states and 
        beneficiary sub-saharan african country components.--Apparel 
        articles sewn or otherwise assembled in one or more beneficiary 
        sub-Saharan African countries with thread formed in the United 
        States from components cut in the United States and one or more 
        beneficiary sub-Saharan African countries from fabric wholly 
        formed in the United States from yarns wholly formed in the 
        United States, or from components knit-to-shape in the United 
        States and one or more beneficiary sub-Saharan African 
        countries from yarns wholly formed in the United States, or 
        both (including fabrics not formed from yarns, if such fabrics 
        are classifiable under heading 5602 or 5603 of the HTS).''.

DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT AND OTHER 
                               PROVISIONS

SEC. 4101. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.

    (a) Extension of Duty-Free Treatment Under System.--Section 505 of 
the Trade Act of 1974 (19 U.S.C. 2465(a)) is amended by striking 
``September 30, 2001'' and inserting ``December 31, 2002''.
    (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, 
                2001,
                    (B) that was made after September 30, 2001, and 
                before the date of the enactment of this Act, and
                    (C) to which duty-free treatment under title V of 
                that Act did not apply,
        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. 4102. FUND FOR WTO DISPUTE SETTLEMENTS.

    (a) Establishment of Fund.--There is established in the Treasury a 
fund for the payment of settlements under this section.
    (b) Authority of USTR to Pay Settlements.--Amounts in the fund 
established under subsection (a) shall be available, as provided in 
appropriations Acts, only for the payment by the United States Trade 
Representative of the amount of the total or partial settlement of any 
dispute pursuant to proceedings under the auspices of the World Trade 
Organization, if--
            (1) in the case of a total or partial settlement in an 
        amount of not more than $10,000,000, the Trade Representative 
        certifies to the Secretary of the Treasury that the settlement 
        is in the best interests of the United States; and
            (2) in the case of a total or partial settlement in an 
        amount of more than $10,000,000, the Trade Representative 
        certifies to the Congress that the settlement is in the best 
        interests of the United States.
    (c) Appropriations.--There are authorized to be appropriated to the 
fund established under subsection (a)--
            (1) $50,000,000; and
            (2) amounts equivalent to amounts recovered by the United 
        States pursuant to the settlement of disputes pursuant to 
        proceedings under the auspices of the World Trade Organization.
Amounts appropriated to the fund are authorized to remain available 
until expended.
    (c) Management of fund.--Sections 9601 and 9602(b) of the Internal 
Revenue Code of 1986 shall apply to the fund established under 
subsection (a) to the same extent as such provisions apply to trust 
funds established under subchapter A of chapter 98 of such Code.

SEC. 4103. PAYMENT OF DUTIES AND FEES.

    Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505(a)) is 
amended--
            (1) in the first sentence--
                    (A) by striking ``Unless the merchandise'' and 
                inserting ``Unless the entry of merchandise is covered 
                by an import activity summary statement, or the 
                merchandise''; and
                    (B) by inserting after ``by regulation'' the 
                following: ``(but not to exceed 10 working days after 
                entry or release, whichever occurs first)''; and
            (2) by striking the second and third sentences and 
        inserting the following: ``If an import activity summary 
        statement is filed, the importer or record shall deposit 
        estimated duties and fees for entries of merchandise covered by 
        the import activity summary statement no later than the 15th 
        day of the month following the month in which the merchandise 
        is entered or released, whichever occurs first.''.
            Attest:

                                                                 Clerk.