[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.