[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3009 Enrolled Bill (ENR)]
H.R.3009
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To extend the Andean Trade Preference Act, to grant additional trade
benefits under that Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Trade Act of 2002''.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
(a) Divisions.--This Act is organized into 5 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.
(5) Division e.--Miscellaneous 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
Subtitle A--Trade Adjustment Assistance For Workers
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. Provision of employer-based training.
Sec. 119. Coordination with title I of the Workforce Investment Act of
1998.
Sec. 120. Expenditure period.
Sec. 121. Job search allowances.
Sec. 122. Relocation allowances.
Sec. 123. Repeal of NAFTA transitional adjustment assistance program.
Sec. 124. Demonstration project for alternative trade adjustment
assistance for older workers.
Sec. 125. Declaration of policy; sense of Congress.
Subtitle B--Trade Adjustment Assistance For Firms
Sec. 131. Reauthorization of program.
Subtitle C--Trade Adjustment Assistance For Farmers
Sec. 141. Trade adjustment assistance for farmers.
Sec. 142. Conforming amendments.
Sec. 143. Study on TAA for fishermen.
Subtitle D--Effective Date
Sec. 151. Effective date.
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.
Sec. 203. Health insurance assistance for 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.
Sec. 339. Authorization of appropriations for customs staffing.
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 other
improved Customs reporting procedures.
Sec. 343A. Secure systems of transportation.
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.
Sec. 383. Payment of duties and fees.
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. Report on impact of trade promotion authority.
Sec. 2112. Interests of small business.
Sec. 2113. 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.
Sec. 3105. Report on Free Trade Agreement with Israel.
Sec. 3106. Modification of duty treatment for tuna.
Sec. 3107. Trade benefits under the caribbean basin economic recovery
act.
Sec. 3108. Trade benefits under the African Growth and Opportunity Act.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
Sec. 4101. Extension of generalized system of preferences.
Sec. 4102. Amendments to generalized system of preferences.
DIVISION E--MISCELLANEOUS PROVISIONS
TITLE L--MISCELLANEOUS TRADE BENEFITS
Subtitle A--Wool Provisions
Sec. 5101. Wool provisions.
Sec. 5102. Duty suspension on wool.
Subtitle B--Other Provisions
Sec. 5201. Fund for WTO dispute settlements.
Sec. 5202. Certain steam or other vapor generating boilers used in
nuclear facilities.
Sec. 5203. Sugar tariff-rate quota circumvention.
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
Subtitle A--Trade Adjustment Assistance For Workers
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, 2007,''.
(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, 2007,''.
(c) Termination.--Section 285 of the Trade Act of 1974 is amended
to read as follows:
``SEC. 285. TERMINATION.
``(a) Assistance for Workers.--
``(1) In general.--Except as provided in paragraph (2), trade
adjustment assistance, vouchers, allowances, and other payments or
benefits may not be provided under chapter 2 after September 30,
2007.
``(2) Exception.--Notwithstanding paragraph (1), a worker shall
continue to receive trade adjustment assistance benefits and other
benefits under chapter 2 for any week for which the worker meets
the eligibility requirements of that chapter, if on or before
September 30, 2007, the worker is--
``(A) certified as eligible for trade adjustment assistance
benefits under chapter 2 of this title; and
``(B) otherwise eligible to receive trade adjustment
assistance benefits under chapter 2.
``(b) Other Assistance.--
``(1) Assistance for firms.--Technical assistance may not be
provided under chapter 3 after September 30, 2007.
``(2) Assistance for farmers.--
``(A) In general.--Except as provided in subparagraph (B),
adjustment assistance, vouchers, allowances, and other payments
or benefits may not be provided under chapter 6 after September
30, 2007.
``(B) Exception.--Notwithstanding subparagraph (A), an
agricultural commodity producer (as defined in section 291(2))
shall continue to receive adjustment assistance benefits and
other benefits under chapter 6, for any week for which the
agricultural commodity producer meets the eligibility
requirements of chapter 6, if on or before September 30, 2007,
the agricultural commodity producer is--
``(i) certified as eligible for adjustment assistance
benefits under chapter 6; and
``(ii) is otherwise eligible to receive adjustment
assistance benefits under such chapter 6.''.
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 simultaneously with the Secretary and 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) ensure that rapid response assistance, and appropriate
core and intensive services (as described in 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
``(B) 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 amending subsection (a) to read as follows:
``(a) In General.--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 under this chapter pursuant to a petition filed under
section 221 if the Secretary determines that--
``(1) a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the firm, have
become totally or partially separated, or are threatened to become
totally or partially separated; and
``(2)(A)(i) the sales or production, or both, of such firm or
subdivision have decreased absolutely;
``(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have increased; and
``(iii) the increase in imports described in clause (ii)
contributed importantly to such workers' separation or threat of
separation and to the decline in the sales or production of such
firm or subdivision; or
``(B)(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles like or
directly competitive with articles which are produced by such firm
or subdivision; and
``(ii)(I) the country to which the workers' firm has shifted
production of the articles is a party to a free trade agreement
with the United States;
``(II) the country to which the workers' firm has shifted
production of the articles is a beneficiary country under the
Andean Trade Preference Act, African Growth and Opportunity Act, or
the Caribbean Basin Economic Recovery Act; or
``(III) there has been or is likely to be an increase in
imports of articles that are like or directly competitive with
articles which are or were produced by such firm or subdivision.'';
(B) by redesignating subsection (b) as subsection (c); and
(C) by inserting after subsection (a) the following:
``(b) Adversely affected secondary workers.--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 trade adjustment assistance benefits under this chapter if
the Secretary determines that--
``(1) 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;
``(2) the workers' firm (or subdivision) is a supplier or
downstream producer to a firm (or subdivision) that employed a
group of workers who received a certification of eligibility under
subsection (a), and such supply or production is related to the
article that was the basis for such certification (as defined in
subsection (c) (3) and (4)); and
``(3) either--
``(A) the workers' firm is a supplier and the component
parts it supplied to the firm (or subdivision) described in
paragraph (2) accounted for at least 20 percent of the
production or sales of the workers' firm; or
``(B) a loss of business by the workers' firm with the firm
(or subdivision) described in paragraph (2) contributed
importantly to the workers' separation or threat of separation
determined under paragraph (1).''.
(b) Definitions.--Section 222(c) of such Act, as redesignated by
paragraph (1)(A), is amended--
(1) in the matter preceding paragraph (1), by striking
``subsection (a)(3)'' and inserting ``this section''; and
(2) by adding at the end the following:
``(3) Downstream producer.--The term `downstream producer'
means a firm that performs additional, value-added production
processes for a firm or subdivision, including a firm that performs
final assembly or finishing, directly for another firm (or
subdivision), for articles that were the basis for a certification
of eligibility under subsection (a) of a group of workers employed
by such other firm, if the certification of eligibility under
subsection (a) is based on an increase in imports from, or a shift
in production to, Canada or Mexico.
``(4) Supplier.--The term `supplier' means a firm that produces
and supplies directly to another firm (or subdivision) component
parts for articles that were the basis for a certification of
eligibility under subsection (a) of a group of workers employed by
such other firm.''.
SEC. 114. QUALIFYING REQUIREMENTS FOR TRADE READJUSTMENT ALLOWANCES.
(a) Clarification of Certain Reductions.--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,''.
(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 16th 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) Waivers of Training Requirements.--
``(1) Issuance of waivers.--The Secretary may issue a written
statement to an adversely affected worker waiving the requirement
to be enrolled in training described in subsection (a)(5)(A) if the
Secretary determines that it is not feasible or appropriate for the
worker, because of 1 or more of the following reasons:
``(A) Recall.--The worker has been notified that the worker
will be recalled by the firm from which the separation
occurred.
``(B) Marketable skills.--The worker possesses marketable
skills for suitable employment (as determined pursuant to an
assessment of the worker, which may include the profiling
system under section 303(j) of the Social Security Act (42
U.S.C. 503(j)), carried out in accordance with guidelines
issued by the Secretary) and there is a reasonable expectation
of employment at equivalent wages in the foreseeable future.
``(C) Retirement.--The worker is within 2 years of meeting
all requirements for entitlement to either--
``(i) old-age insurance benefits under title II of the
Social Security Act (42 U.S.C. 401 et seq.) (except for
application therefor); or
``(ii) a private pension sponsored by an employer or
labor organization.
``(D) Health.--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.
``(E) Enrollment unavailable.--The first available
enrollment date for the approved training of the worker is
within 60 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.
``(F) Training not available.--Training approved by the
Secretary is not reasonably available to the worker from either
governmental agencies or private sources (which may include
area vocational education schools, as defined in section 3 of
the Carl D. Perkins Vocational and Technical Education Act of
1998 (20 U.S.C. 2302), and employers), no training that is
suitable for the worker is available at a reasonable cost, or
no training funds are available.
``(2) Duration of waivers.--
``(A) In general.--A waiver issued under paragraph (1)
shall be effective for not more than 6 months after the date on
which the waiver is issued, unless the Secretary determines
otherwise.
``(B) Revocation.--The Secretary shall revoke a waiver
issued under paragraph (1) if the Secretary determines that the
basis of a waiver is no longer applicable to the worker and
shall notify the worker in writing of the revocation.
``(3) Agreements under section 239.--
``(A) Issuance by cooperating states.--Pursuant to an
agreement under section 239, the Secretary may authorize a
cooperating State to issue waivers as described in paragraph
(1).
``(B) Submission of statements.--An agreement under section
239 shall include a requirement that the cooperating State
submit to the Secretary the written statements provided under
paragraph (1) and a statement of the reasons for the waiver.''.
(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 ``$220,000,000''.
SEC. 118. 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 at the end 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. 119. COORDINATION WITH TITLE I OF THE WORKFORCE INVESTMENT ACT OF
1998.
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))''.
SEC. 120. 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 by amending
subsection (b) to read as follows:
``(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. 121. JOB SEARCH ALLOWANCES.
Section 237 of the Trade Act of 1974 (19 U.S.C. 2297) is amended to
read as follows:
``SEC. 237. JOB SEARCH ALLOWANCES.
``(a) Job Search Allowance Authorized.--
``(1) In general.--An adversely affected worker covered by a
certification issued under subchapter A of this chapter may file an
application with the Secretary for payment of a job search
allowance.
``(2) Approval of applications.--The Secretary may grant an
allowance pursuant to an application filed under paragraph (1) when
all of the following apply:
``(A) Assist adversely affected worker.--The allowance is
paid to assist an adversely affected worker who has been
totally separated in securing a job within the United States.
``(B) Local employment not available.--The Secretary
determines that the worker cannot reasonably be expected to
secure suitable employment in the commuting area in which the
worker resides.
``(C) Application.--The worker has filed an application for
the allowance with the Secretary before--
``(i) the later of--
``(I) the 365th day after the date of the
certification under which the worker is certified as
eligible; or
``(II) the 365th day after the date of the worker's
last total separation; or
``(ii) the date that is the 182d day after the date on
which the worker concluded training, unless the worker
received a waiver under section 231(c).
``(b) Amount of Allowance.--
``(1) In general.--An allowance granted under subsection (a)
shall provide reimbursement to the worker of 90 percent of the cost
of necessary job search expenses as prescribed by the Secretary in
regulations.
``(2) Maximum allowance.--Reimbursement under this subsection
may not exceed $1,250 for any worker.
``(3) Allowance for subsistence and transportation.--
Reimbursement under this subsection may not be made for subsistence
and transportation expenses at levels exceeding those allowable
under section 236(b) (1) and (2).
``(c) Exception.--Notwithstanding subsection (b), the Secretary
shall reimburse any adversely affected worker for necessary expenses
incurred by the worker in participating in a job search program
approved by the Secretary.''.
SEC. 122. RELOCATION ALLOWANCES.
Section 238 of the Trade Act of 1974 (19 U.S.C. 2298) is amended to
read as follows:
``SEC. 238. RELOCATION ALLOWANCES.
``(a) Relocation Allowance Authorized.--
``(1) In general.--Any adversely affected worker covered by a
certification issued under subchapter A of this chapter may file an
application for a relocation allowance with the Secretary, and the
Secretary may grant the relocation allowance, subject to the terms
and conditions of this section.
``(2) Conditions for granting allowance.--A relocation
allowance may be granted if all of the following terms and
conditions are met:
``(A) Assist an adversely affected worker.--The relocation
allowance will assist an adversely affected worker in
relocating within the United States.
``(B) Local employment not available.--The Secretary
determines that the worker cannot reasonably be expected to
secure suitable employment in the commuting area in which the
worker resides.
``(C) Total separation.--The worker is totally separated
from employment at the time relocation commences.
``(D) Suitable employment obtained.--The worker--
``(i) has obtained suitable employment affording a
reasonable expectation of long-term duration in the area in
which the worker wishes to relocate; or
``(ii) has obtained a bona fide offer of such
employment.
``(E) Application.--The worker filed an application with
the Secretary before--
``(i) the later of--
``(I) the 425th day after the date of the
certification under subchapter A of this chapter; or
``(II) the 425th day after the date of the worker's
last total separation; or
``(ii) the date that is the 182d day after the date on
which the worker concluded training, unless the worker
received a waiver under section 231(c).
``(b) Amount of Allowance.--The relocation allowance granted to a
worker under subsection (a) includes--
``(1) 90 percent of the reasonable and necessary expenses
(including, but not limited to, subsistence and transportation
expenses at levels not exceeding those allowable under section
236(b) (1) and (2) specified in regulations prescribed by the
Secretary, incurred in transporting the worker, the worker's
family, and household effects; and
``(2) a lump sum equivalent to 3 times the worker's average
weekly wage, up to a maximum payment of $1,250.
``(c) Limitations.--A relocation allowance may not be granted to a
worker unless--
``(1) the relocation occurs within 182 days after the filing of
the application for relocation assistance; or
``(2) the relocation occurs within 182 days after the
conclusion of training, if the worker entered a training program
approved by the Secretary under section 236(b) (1) and (2).''.
SEC. 123. REPEAL OF NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE PROGRAM.
(a) In General.--Subchapter D of chapter 2 of title II of such Act
(19 U.S.C. 2331) is repealed.
(b) Conforming Amendments.--
(1) Section 225(b) (1) and (2) of the Trade Act of 1974 (19
U.S.C. 2275(b) (1) and (2)) is amended by striking ``or subchapter
D'' each place it appears.
(2) Section 249A of such Act (19 U.S.C. 2322) is repealed.
(3) The table of contents of such Act is amended--
(A) by striking the item relating to section 249A; and
(B) by striking the items relating to subchapter D of
chapter 2 of title II.
(4) Section 284(a) of such Act is amended by striking ``or
section 250(c)''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply with respect to petitions filed under chapter 2 of title II
of the Trade Act of 1974, on or after the date that is 90 days
after the date of enactment of this Act.
(2) Workers certified as eligible before effective date.--
Notwithstanding subsection (a), a worker receiving benefits under
chapter 2 of title II of the Trade Act of 1974 shall continue to
receive (or be eligible to receive) benefits and services under
chapter 2 of title II of the Trade Act of 1974, as in effect on the
day before the amendments made by this section take effect under
subsection (a), for any week for which the worker meets the
eligibility requirements of such chapter 2 as in effect on such
date.
SEC. 124. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE ADJUSTMENT
ASSISTANCE FOR OLDER WORKERS.
(a) Demonstration Program.--Chapter 2 of title II of the Trade Act
of 1974 (19 U.S.C. 2271 et seq.) is amended by striking section 246 and
inserting the following new section:
``SEC. 246. DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE ADJUSTMENT
ASSISTANCE FOR OLDER WORKERS.
``(a) In General.--
``(1) Establishment.--Not later than 1 year after the date of
enactment of the Trade Adjustment Assistance Reform Act of 2002,
the Secretary shall establish an alternative trade adjustment
assistance program for older workers that provides the benefits
described in paragraph (2).
``(2) Benefits.
``(A) Payments.--A State shall use the funds provided to
the State under section 241 to pay, for a period not to exceed
2 years, to a worker described in paragraph (3)(B), 50 percent
of the difference between--
``(i) the wages received by the worker from
reemployment; and
``(ii) the wages received by the worker at the time of
separation.
``(B) Health insurance.--A worker described in paragraph
(3)(B) participating in the program established under paragraph
(1) is eligible to receive, for a period not to exceed 2 years,
a credit for health insurance costs under section 35 of the
Internal Revenue Code of 1986, as added by section 201 of the
Trade Act of 2002.
``(3) Eligibility.--
``(A) Firm eligibility.--
``(i) In general.--The Secretary shall provide the
opportunity for a group of workers on whose behalf a
petition is filed under section 221 to request that the
group of workers be certified for the alternative trade
adjustment assistance program under this section at the
time the petition is filed.
``(ii) Criteria.--In determining whether to certify a
group of workers as eligible for the alternative trade
adjustment assistance program, the Secretary shall consider
the following criteria:
``(I) Whether a significant number of workers in
the workers' firm are 50 years of age or older.
``(II) Whether the workers in the workers' firm
possess skills that are not easily transferable.
``(III) The competitive conditions within the
workers' industry.
``(iii) Deadline.--The Secretary shall determine
whether the workers in the group are eligible for the
alternative trade adjustment assistance program by the date
specified in section 223(a).
``(B) Individual Eligibility.--A worker in the group that
the Secretary has certified as eligible for the alternative
trade adjustment assistance program may elect to receive
benefits under the alternative trade adjustment assistance
program if the worker--
``(i) is covered by a certification under subchapter A
of this chapter;
``(ii) obtains reemployment not more than 26 weeks
after the date of separation from the adversely affected
employment;
``(iii) is at least 50 years of age; and
``(iv) earns not more than $50,000 a year in wages from
reemployment;
``(v) is employed on a full-time basis as defined by
State law in the State in which the worker is employed; and
``(vi) does not return to the employment from which the
worker was separated.
``(4) Total amount of payments.--The payments described in
paragraph (2)(A) made to a worker may not exceed $10,000 per worker
during the 2-year eligibility period.
``(5) Limitation on other benefits.--Except as provided in
section 238(a)(2)(B), if a worker is receiving payments pursuant to
the program established under paragraph (1), the worker shall not
be eligible to receive any other benefits under this title.
``(b) Termination.--
``(1) In general.--Except as provided in paragraph (2), no
payments may be made by a State under the program established under
subsection (a)(1) after the date that is 5 years after the date on
which such program is implemented by the State.
``(2) Exception.--Notwithstanding paragraph (1), a worker
receiving payments under the program established under subsection
(a)(1) on the termination date described in paragraph (1) shall
continue to receive such payments provided that the worker meets
the criteria described in subsection (a)(3)(B).''.
(b) Table of Contents.--The Trade Act of 1974 (U.S.C. et seq.) is
amended in the table of contents by inserting after the item relating
to section 245 the following new item:
``Sec. 246. Demonstration project for alternative trade adjustment
assistance for older workers.''.
SEC. 125. 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.
Subtitle B--Trade Adjustment Assistance For Firms
SEC. 131. REAUTHORIZATION OF PROGRAM.
Section 256(b) of chapter 3 of title II of the Trade Act of 1974
(19 U.S.C. 2346(b)) is amended to read as follows:
``(b) There are authorized to be appropriated to the Secretary
$16,000,000 for each of fiscal years 2003 through 2007, to carry out
the Secretary's functions under this chapter in connection with
furnishing adjustment assistance to firms. Amounts appropriated under
this subsection shall remain available until expended.''.
Subtitle C--Trade Adjustment Assistance For Farmers
SEC. 141. TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.
(a) In General.--Title II of the Trade Act of 1974 (19 U.S.C. 2251
et seq.) is amended by adding at the end the following new chapter:
``CHAPTER 6--ADJUSTMENT ASSISTANCE FOR FARMERS
``SEC. 291. DEFINITIONS.
``In this chapter:
``(1) Agricultural commodity.--The term `agricultural
commodity' means any agricultural commodity (including livestock)
in its raw or natural state.
``(2) Agricultural commodity producer.--The term `agricultural
commodity producer' has the same meaning as the term `person' as
prescribed by regulations promulgated under section 1001(5) of the
Food Security Act of 1985 (7 U.S.C. 1308(5)).
``(3) Contributed importantly.--
``(A) In general.--The term `contributed importantly' means
a cause which is important but not necessarily more important
than any other cause.
``(B) Determination of contributed importantly.--The
determination of whether imports of articles like or directly
competitive with an agricultural commodity with respect to
which a petition under this chapter was filed contributed
importantly to a decline in the price of the agricultural
commodity shall be made by the Secretary.
``(4) Duly authorized representative.--The term `duly
authorized representative' means an association of agricultural
commodity producers.
``(5) National average price.--The term `national average
price' means the national average price paid to an agricultural
commodity producer for an agricultural commodity in a marketing
year as determined by the Secretary.
``(6) Secretary.--The term `Secretary' means the Secretary of
Agriculture.
``SEC. 292. PETITIONS; GROUP ELIGIBILITY.
``(a) In General.--A petition for a certification of eligibility to
apply for adjustment assistance under this chapter may be filed with
the Secretary by a group of agricultural commodity producers or by
their duly authorized representative. 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) Hearings.--If the petitioner, or any other person found by
the Secretary to have a substantial interest in the proceedings,
submits not later than 10 days after the date of the Secretary's
publication under subsection (a) a request for a hearing, the Secretary
shall provide for a public hearing and afford such interested person an
opportunity to be present, to produce evidence, and to be heard.
``(c) Group Eligibility Requirements.--The Secretary shall certify
a group of agricultural commodity producers as eligible to apply for
adjustment assistance under this chapter if the Secretary determines--
``(1) that the national average price for the agricultural
commodity, or a class of goods within the agricultural commodity,
produced by the group for the most recent marketing year for which
the national average price is available is less than 80 percent of
the average of the national average price for such agricultural
commodity, or such class of goods, for the 5 marketing years
preceding the most recent marketing year; and
``(2) that increases in imports of articles like or directly
competitive with the agricultural commodity, or class of goods
within the agricultural commodity, produced by the group
contributed importantly to the decline in price described in
paragraph (1).
``(d) Special Rule for Qualified Subsequent Years.--A group of
agricultural commodity producers certified as eligible under section
293 shall be eligible to apply for assistance under this chapter in any
qualified year after the year the group is first certified, if the
Secretary determines that--
``(1) the national average price for the agricultural
commodity, or class of goods within the agricultural commodity,
produced by the group for the most recent marketing year for which
the national average price is available is equal to or less than
the price determined under subsection (c)(1); and
``(2) the requirements of subsection (c)(2) are met.
``(e) Determination of Qualified Year and Commodity.--In this
chapter:
``(1) Qualified year.--The term `qualified year', with respect
to a group of agricultural commodity producers certified as
eligible under section 293, means each consecutive year after the
year in which the group is certified and in which the Secretary
makes the determination under subsection (c) or (d), as the case
may be.
``(2) Classes of goods within a commodity.--In any case in
which there are separate classes of goods within an agricultural
commodity, the Secretary shall treat each class as a separate
commodity in determining group eligibility, the national average
price, and level of imports under this section and section 296.
``SEC. 293. DETERMINATIONS BY SECRETARY OF AGRICULTURE.
``(a) In General.--As soon as practicable after the date on which a
petition is filed under section 292, but in any event not later than 40
days after that date, the Secretary shall determine whether the
petitioning group meets the requirements of section 292 (c) or (d), as
the case may be, and shall, if the group meets the requirements, issue
a certification of eligibility to apply for assistance under this
chapter covering agricultural commodity producers in any group that
meets the requirements. Each certification shall specify the date on
which eligibility under this chapter begins.
``(b) Notice.--Upon making a determination on a petition, the
Secretary shall promptly publish a summary of the determination in the
Federal Register, together with the Secretary's reasons for making the
determination.
``(c) Termination of Certification.--Whenever the Secretary
determines, with respect to any certification of eligibility under this
chapter, that the decline in price for the agricultural commodity
covered by the certification is no longer attributable to the
conditions described in section 292, the Secretary shall terminate such
certification and promptly cause notice of such termination to be
published in the Federal Register, together with the Secretary's
reasons for making such determination.
``SEC. 294. STUDY BY SECRETARY OF AGRICULTURE WHEN INTERNATIONAL TRADE
COMMISSION BEGINS INVESTIGATION.
``(a) In General.--Whenever the International Trade Commission (in
this chapter referred to as the `Commission') begins an investigation
under section 202 with respect to an agricultural commodity, the
Commission shall immediately notify the Secretary of the investigation.
Upon receipt of the notification, the Secretary shall immediately
conduct a study of--
``(1) the number of agricultural commodity producers producing
a like or directly competitive agricultural commodity who have been
or are likely to be certified as eligible for adjustment assistance
under this chapter, and
``(2) the extent to which the adjustment of such producers to
the import competition may be facilitated through the use of
existing programs.
``(b) Report.--Not later than 15 days after the day on which the
Commission makes its report under section 202(f), the Secretary shall
submit a report to the President setting forth the findings of the
study described in subsection (a). Upon making the report to the
President, the Secretary shall also promptly make the report public
(with the exception of information which the Secretary determines to be
confidential) and shall have a summary of the report published in the
Federal Register.
``SEC. 295. BENEFIT INFORMATION TO AGRICULTURAL COMMODITY PRODUCERS.
``(a) In General.--The Secretary shall provide full information to
agricultural commodity producers about the benefit allowances,
training, and other employment services available under this title and
about the petition and application procedures, and the appropriate
filing dates, for such allowances, training, and services. The
Secretary shall provide whatever assistance is necessary to enable
groups to prepare petitions or applications for program benefits under
this title.
``(b) Notice of Benefits.--
``(1) In general.--The Secretary shall mail written notice of
the benefits available under this chapter to each agricultural
commodity producer that the Secretary has reason to believe is
covered by a certification made under this chapter.
``(2) Other notice.--The Secretary shall publish notice of the
benefits available under this chapter to agricultural commodity
producers that are covered by each certification made under this
chapter in newspapers of general circulation in the areas in which
such producers reside.
``(3) Other federal assistance.--The Secretary shall also
provide information concerning procedures for applying for and
receiving all other Federal assistance and services available to
workers facing economic distress.
``SEC. 296. QUALIFYING REQUIREMENTS FOR AGRICULTURAL COMMODITY
PRODUCERS.
``(a) In General.--
``(1) Requirements.--Payment of a trade adjustment allowance
shall be made to an adversely affected agricultural commodity
producer covered by a certification under this chapter who files an
application for such allowance within 90 days after the date on
which the Secretary makes a determination and issues a
certification of eligibility under section 293, if the following
conditions are met:
``(A) The producer submits to the Secretary sufficient
information to establish the amount of agricultural commodity
covered by the application filed under subsection (a) that was
produced by the producer in the most recent year.
``(B) The producer certifies that the producer has not
received cash benefits under any provision of this title other
than this chapter.
``(C) The producer's net farm income (as determined by the
Secretary) for the most recent year is less than the producer's
net farm income for the latest year in which no adjustment
assistance was received by the producer under this chapter.
``(D) The producer certifies that the producer has met with
an Extension Service employee or agent to obtain, at no cost to
the producer, information and technical assistance that will
assist the producer in adjusting to import competition with
respect to the adversely affected agricultural commodity,
including--
``(i) information regarding the feasibility and
desirability of substituting 1 or more alternative
commodities for the adversely affected agricultural
commodity; and
``(ii) technical assistance that will improve the
competitiveness of the production and marketing of the
adversely affected agricultural commodity by the producer,
including yield and marketing improvements.
``(2) Limitations.--
``(A) Adjusted gross income.--
``(i) In general.--Notwithstanding any other provision
of this chapter, an agricultural commodity producer shall
not be eligible for assistance under this chapter in any
year in which the average adjusted gross income of the
producer exceeds the level set forth in section 1001D of
the Food Security Act of 1985.
``(ii) Certification.--To comply with the limitation
under subparagraph (A), an individual or entity shall
provide to the Secretary--
``(I) a certification by a certified public
accountant or another third party that is acceptable to
the Secretary that the average adjusted gross income of
the producer does not exceed the level set forth in
section 1001D of the Food Security Act of 1985; or
``(II) information and documentation regarding the
adjusted gross income of the producer through other
procedures established by the Secretary.
``(B) Counter-cyclical payments.--The total amount of
payments made to an agricultural producer under this chapter
during any crop year may not exceed the limitation on counter-
cyclical payments set forth in section 1001(c) of the Food
Security Act of 1985.
``(C) Definitions.--In this subsection:
``(i) Adjusted gross income.--The term `adjusted gross
income' means adjusted gross income of an agricultural
commodity producer--
``(I) as defined in section 62 of the Internal
Revenue Code of 1986 and implemented in accordance with
procedures established by the Secretary; and
``(II) that is earned directly or indirectly from
all agricultural and nonagricultural sources of an
individual or entity for a fiscal or corresponding crop
year.
``(ii) Average adjusted gross income.--
``(I) In general.--The term `average adjusted gross
income' means the average adjusted gross income of a
producer for each of the 3 preceding taxable years.
``(II) Effective adjusted gross income.--In the
case of a producer that does not have an adjusted gross
income for each of the 3 preceding taxable years, the
Secretary shall establish rules that provide the
producer with an effective adjusted gross income for
the applicable year.
``(b) Amount of Cash Benefits.--
``(1) In general.--Subject to the provisions of section 298, an
adversely affected agricultural commodity producer described in
subsection (a) shall be entitled to adjustment assistance under
this chapter in an amount equal to the product of--
``(A) one-half of the difference between--
``(i) an amount equal to 80 percent of the average of
the national average price of the agricultural commodity
covered by the application described in subsection (a) for
the 5 marketing years preceding the most recent marketing
year, and
``(ii) the national average price of the agricultural
commodity for the most recent marketing year, and
``(B) the amount of the agricultural commodity produced by
the agricultural commodity producer in the most recent
marketing year.
``(2) Special rule for subsequent qualified years.--The amount
of cash benefits for a qualified year shall be determined in the
same manner as cash benefits are determined under paragraph (1)
except that the average national price of the agricultural
commodity shall be determined under paragraph (1)(A)(i) by using
the 5-marketing-year period used to determine the amount of cash
benefits for the first certification.
``(c) Maximum Amount of Cash Assistance.--The maximum amount of
cash benefits an agricultural commodity producer may receive in any 12-
month period shall not exceed $10,000.
``(d) Limitations on Other Assistance.--An agricultural commodity
producer entitled to receive a cash benefit under this chapter--
``(1) shall not be eligible for any other cash benefit under
this title, and
``(2) shall be entitled to employment services and training
benefits under part II of subchapter B of chapter 2.
``SEC. 297. FRAUD AND RECOVERY OF OVERPAYMENTS.
``(a) In General.--
``(1) Repayment.--If the Secretary, or a court of competent
jurisdiction, determines that any person has received any payment
under this chapter to which the person was not entitled, such
person shall be liable to repay such amount to the Secretary,
except that the Secretary may waive such repayment if the Secretary
determines, in accordance with guidelines prescribed by the
Secretary, that--
``(A) the payment was made without fault on the part of
such person; and
``(B) requiring such repayment would be contrary to equity
and good conscience.
``(2) Recovery of overpayment.--Unless an overpayment is
otherwise recovered, or waived under paragraph (1), the Secretary
shall recover the overpayment by deductions from any sums payable
to such person under this chapter.
``(b) False Statement.--A person shall, in addition to any other
penalty provided by law, be ineligible for any further payments under
this chapter--
``(1) if the Secretary, or a court of competent jurisdiction,
determines that the person--
``(A) knowingly has made, or caused another to make, a
false statement or representation of a material fact; or
``(B) knowingly has failed, or caused another to fail, to
disclose a material fact; and
``(2) as a result of such false statement or representation, or
of such nondisclosure, such person has received any payment under
this chapter to which the person was not entitled.
``(c) Notice and Determination.--Except for overpayments determined
by a court of competent jurisdiction, no repayment may be required, and
no deduction may be made, under this section until a determination
under subsection (a)(1) by the Secretary has been made, notice of the
determination and an opportunity for a fair hearing thereon has been
given to the person concerned, and the determination has become final.
``(d) Payment to Treasury.--Any amount recovered under this section
shall be returned to the Treasury of the United States.
``(e) Penalties.--Whoever makes a false statement of a material
fact knowing it to be false, or knowingly fails to disclose a material
fact, for the purpose of obtaining or increasing for himself or for any
other person any payment authorized to be furnished under this chapter
shall be fined not more than $10,000 or imprisoned for not more than 1
year, or both.
``SEC. 298. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated and
there are appropriated to the Department of Agriculture not to exceed
$90,000,000 for each of the fiscal years 2003 through 2007 to carry out
the purposes of this chapter.
``(b) Proportionate Reduction.--If in any year the amount
appropriated under this chapter is insufficient to meet the
requirements for adjustment assistance payable under this chapter, the
amount of assistance payable under this chapter shall be reduced
proportionately.''.
(b) Effective Date.--The amendments made by this title shall take
effect on the date that is 180 days after the date of enactment of this
Act.
SEC. 142. CONFORMING AMENDMENTS.
(a) Judicial review.--
(1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a))
is amended--
(A) by inserting ``an agricultural commodity producer (as
defined in section 291(2)) aggrieved by a determination of the
Secretary of Agriculture under section 293, '' after ``section
251 of this title,''; and
(B) in the second sentence of subsection (a) and in
subsections (b) and (c), by striking ``or the Secretary of
Commerce'' each place it appears and inserting ``, the
Secretary of Commerce, or the Secretary of Agriculture''.
(b) Chapters 6.--The table of contents for title II of the Trade
Act of 1974, as amended by subparagraph (A), is amended by inserting
after the items relating to chapter 5 the following:
``Chapter 6--Adjustment Assistance for Farmers
``Sec. 291. Definitions.
``Sec. 292. Petitions; group eligibility.
``Sec. 293. Determinations by Secretary of Agriculture.
``Sec. 294. Study by Secretary of Agriculture when International Trade
Commission begins investigation.
``Sec. 295. Benefit information to agricultural commodity producers.
``Sec. 296. Qualifying requirements for agricultural commodity
producers.
``Sec. 297. Fraud and recovery of overpayments.
``Sec. 298. Authorization of appropriations.''.
SEC. 143. STUDY ON TAA FOR FISHERMEN.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Commerce shall conduct a study and report to Congress
regarding whether a trade adjustment assistance program is appropriate
and feasible for fishermen. For purposes of the preceding sentence, the
term ``fishermen'' means any person who is engaged in commercial
fishing or is a United States fish processor.
Subtitle D--Effective Date
SEC. 151. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in sections 123(c)
and 141(b), and subsections (b), (c), and (d) of this section, the
amendments made by this division shall apply to petitions for
certification filed under chapter 2 or 3 of title II of the Trade Act
of 1974 on or after the date that is 90 days after the date of
enactment of this Act.
(b) Workers Certified as Eligible Before Effective Date.--
Notwithstanding subsection (a), a worker shall continue to receive (or
be eligible to receive) trade adjustment assistance and other benefits
under chapter 2 of title II of the Trade Act of 1974, as in effect on
September 30, 2001, for any week for which the worker meets the
eligibility requirements of such chapter 2 as in effect on such date,
if on or before such date, the worker--
(1) was certified as eligible for trade adjustment assistance
benefits under such chapter as in effect on such date; and
(2) would otherwise be eligible to receive trade adjustment
assistance benefits under such chapter as in effect on such date.
(c) Workers Who Became Eligible During Qualified Period.--
(1) In general.--Notwithstanding subsection (a) or any other
provision of law, including section 285 of the Trade Act of 1974,
any worker who would have been eligible to receive trade adjustment
assistance or other benefits under chapter 2 of title II of the
Trade Act of 1974 during the qualified period if such chapter 2 had
been in effect during such period, shall be eligible to receive
trade adjustment assistance and other benefits under chapter 2 of
title II of the Trade Act of 1974, as in effect on September 30,
2001, for any week during the qualified period for which the worker
meets the eligibility requirements of such chapter 2 as in effect
on September 30, 2001.
(2) Qualified period.--For purposes of this subsection, the
term ``qualified period'' means the period beginning on January 11,
2002, and ending on the date that is 90 days after the date of
enactment of this Act.
(d) Adjustment Assistance for Firms.--
(1) In general.--Notwithstanding subsection (a) or any other
provision of law, including section 285 of the Trade Act of 1974,
and except as provided in paragraph (2), any firm that would have
been eligible to receive adjustment assistance under chapter 3 of
title II of the Trade Act if 1974 during the qualified period if
such chapter 3 had been in effect during such period, shall be
eligible to receive adjustment assistance under chapter 3 of title
II of the Trade Act of 1974, as in effect on September 30, 2001,
for any week during the qualified period for which the firm meets
the eligibility requirements of such chapter 3 as in effect on
September 30, 2001.
(2) Qualified period.--For purposes of this subsection, the
term ``qualified period'' means the period beginning on October 1,
2001, and ending on the date that is 90 days after the date of
enactment of this Act.
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 65 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) 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,
``(iii) does not have other specified coverage, and
``(iv) is not imprisoned under Federal, State, or local
authority, and
``(B) such month begins more than 90 days after the date of
the enactment of the Trade Act of 2002.
``(2) 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.
``(c) Eligible Individual.--For purposes of this section--
``(1) In general.--The term `eligible individual' means--
``(A) an eligible TAA recipient,
``(B) an eligible alternative TAA recipient, and
``(C) an eligible PBGC pension recipient.
``(2) Eligible taa recipient.--The term `eligible TAA
recipient' means, with respect to any month, any individual who is
receiving for any day of such month a trade readjustment allowance
under chapter 2 of title II of the Trade Act of 1974 or who would
be eligible to receive such allowance if section 231 of such Act
were applied without regard to subsection (a)(3)(B) of such
section. 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 by reason of the
preceding sentence.
``(3) Eligible alternative taa recipient.--The term `eligible
alternative TAA recipient' means, with respect to any month, any
individual who--
``(A) is a worker described in section 246(a)(3)(B) of the
Trade Act of 1974 who is participating in the program
established under section 246(a)(1) of such Act, and
``(B) is receiving a benefit for such month under section
246(a)(2) of such Act.
An individual shall continue to be treated as an eligible
alternative TAA recipient during the first month that such
individual would otherwise cease to be an eligible alternative TAA
recipient by reason of the preceding sentence.
``(4) 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.
``(d) 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.
``(e) Qualified Health Insurance.--For purposes of this section--
``(1) In general.--The term `qualified health insurance' means
any of the following:
``(A) Coverage under a COBRA continuation provision (as
defined in section 9832(d)(1)).
``(B) State-based continuation coverage provided by the
State under a State law that requires such coverage.
``(C) Coverage offered through a qualified State high risk
pool (as defined in section 2744(c)(2) of the Public Health
Service Act).
``(D) Coverage under a health insurance program offered for
State employees.
``(E) Coverage under a State-based health insurance program
that is comparable to the health insurance program offered for
State employees.
``(F) Coverage through an arrangement entered into by a
State and--
``(i) a group health plan (including such a plan which
is a multiemployer plan as defined in section 3(37) of the
Employee Retirement Income Security Act of 1974),
``(ii) an issuer of health insurance coverage,
``(iii) an administrator, or
``(iv) an employer.
``(G) Coverage offered through a State arrangement with a
private sector health care coverage purchasing pool.
``(H) Coverage under a State-operated health plan that does
not receive any Federal financial participation.
``(I) Coverage under a group health plan that is available
through the employment of the eligible individual's spouse.
``(J) In the case of any eligible individual and such
individual's qualifying family members, coverage under
individual health insurance if the eligible individual was
covered under individual health insurance during the entire 30-
day period that ends on the date that such individual became
separated from the employment which qualified such individual
for--
``(i) in the case of an eligible TAA recipient, the
allowance described in subsection (c)(2),
``(ii) in the case of an eligible alternative TAA
recipient, the benefit described in subsection (c)(3)(B),
or
``(iii) in the case of any eligible PBGC pension
recipient, the benefit described in subsection (c)(4)(B).
For purposes of this subparagraph, the term `individual health
insurance' means any insurance which constitutes medical care
offered to individuals other than in connection with a group
health plan and does not include Federal- or State-based health
insurance coverage.
``(2) Requirements for state-based coverage.--
``(A) In general.--The term `qualified health insurance'
does not include any coverage described in subparagraphs (B)
through (H) of paragraph (1) unless the State involved has
elected to have such coverage treated as qualified health
insurance under this section and such coverage meets the
following requirements:
``(i) Guaranteed issue.--Each qualifying individual is
guaranteed enrollment if the individual pays the premium
for enrollment or provides a qualified health insurance
costs credit eligibility certificate described in section
7527 and pays the remainder of such premium.
``(ii) No imposition of preexisting condition
exclusion.--No pre-existing condition limitations are
imposed with respect to any qualifying individual.
``(iii) Nondiscriminatory premium.--The total premium
(as determined without regard to any subsidies) with
respect to a qualifying individual may not be greater than
the total premium (as so determined) for a similarly
situated individual who is not a qualifying individual.
``(iv) Same benefits.--Benefits under the coverage are
the same as (or substantially similar to) the benefits
provided to similarly situated individuals who are not
qualifying individuals.
``(B) Qualifying individual.--For purposes of this
paragraph, the term `qualifying individual' means--
``(i) an eligible individual for whom, as of the date
on which the individual seeks to enroll in the coverage
described in subparagraphs (B) through (H) of paragraph
(1), the aggregate of the periods of creditable coverage
(as defined in section 9801(c)) is 3 months or longer and
who, with respect to any month, meets the requirements of
clauses (iii) and (iv) of subsection (b)(1)(A); and
``(ii) the qualifying family members of such eligible
individual.
``(3) Exception.--The term `qualified health insurance' shall
not include--
``(A) a flexible spending or similar arrangement, and
``(B) any insurance if substantially all of its coverage is
of excepted benefits described in section 9832(c).
``(f) Other Specified Coverage.--For purposes of this section, an
individual has other specified coverage for any month if, as of the
first day of such month--
``(1) Subsidized coverage.--
``(A) In general.--Such individual is covered under any
insurance which constitutes medical care (except insurance
substantially all of the coverage of which is of excepted
benefits described in section 9832(c)) 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) Eligible alternative taa recipients.--In the case of
an eligible alternative TAA recipient, such individual is
either--
``(i) eligible for coverage under any qualified health
insurance (other than insurance described in subparagraph
(A), (B), or (F) of subsection (e)(1)) under which at least
50 percent of the cost of coverage (determined under
section 4980B(f)(4)) is paid or incurred by an employer (or
former employer) of the taxpayer or the taxpayer's spouse,
or
``(ii) covered under any such qualified health
insurance under which any portion of the cost of coverage
(as so determined) is paid or incurred by an employer (or
former employer) of the taxpayer or the taxpayer's spouse.
``(C) Treatment of cafeteria plans.--For purposes of
subparagraphs (A) and (B), the cost of coverage shall be
treated as paid or incurred by an employer to the extent the
coverage is in lieu of a right to receive cash or other
qualified benefits under a cafeteria plan (as defined in
section 125(d)).
``(2) Coverage under medicare, medicaid, or schip.--Such
individual--
``(A) 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
``(B) is enrolled in the program under title XIX or XXI of
such Act (other than under section 1928 of such Act).
``(3) Certain other coverage.--Such individual--
``(A) is enrolled in a health benefits plan under chapter
89 of title 5, United States Code, or
``(B) is entitled to receive benefits under chapter 55 of
title 10, United States Code.
``(g) 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) Both spouses eligible individuals.--The spouse of the
taxpayer shall not be treated as a qualifying family member for
purposes of subsection (a), if--
``(A) the taxpayer is married at the close of the taxable
year,
``(B) the taxpayer and the taxpayer's spouse are both
eligible individuals during the taxable year, and
``(C) the taxpayer files a separate 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 individuals) 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) 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) 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.
``(c) Funding.--Out of any money in the Treasury of the United
States not otherwise appropriated, there are authorized and
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 to
carry out subsection (b).
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.''.
(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.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2001.
(2) State high risk pools.--The amendment made by subsection
(b) shall take effect on the date of the enactment of this Act.
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 August 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(e)) for such individuals.
``(b) Limitation on Advance Payments During any Taxable Year.--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 65 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.
``(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, the term `qualified health
insurance costs credit eligibility certificate' means any written
statement that an individual is an eligible individual (as defined in
section 35(c)) if such statement provides such information as the
Secretary may require for purposes of this section and--
``(1) in the case of an eligible TAA recipient (as defined in
section 35(c)(2)) or an eligible alternative TAA recipient (as
defined in section 35(c)(3)), is certified by the Secretary of
Labor (or by any other person or entity designated by the
Secretary), or
``(2) in the case of an eligible PBGC pension recipient (as
defined in section 35(c)(4)), is certified by the Pension Benefit
Guaranty Corporation (or by any other person or entity designated
by the Secretary).''.
(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 credit for health insurance costs of eligible
individuals).''.
(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
the Internal Revenue Code of 1986 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.
SEC. 203. HEALTH INSURANCE ASSISTANCE FOR ELIGIBLE INDIVIDUALS.
(a) Eligibility for Grants.--Section 173(a) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(a)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period and inserting ``;
and''; and
(3) by adding at the end the following:
``(4) from funds appropriated under section 174(c)--
``(A) to a State or entity (as defined in section
173(c)(1)(B)) to carry out subsection (f), including providing
assistance to eligible individuals; and
``(B) to a State or entity (as so defined) to carry out
subsection (g), including providing assistance to eligible
individuals.''.
(b) Use of Funds for Health Insurance Coverage.--Section 173 of the
Workforce Investment Act of 1998 (29 U.S.C. 2918) is amended by adding
at the end the following:
``(f) Health Insurance Coverage Assistance for Eligible
Individuals.--
``(1) In general.--Funds made available to a State or entity
under paragraph (4)(A) of subsection (a) may be used by the State
or entity for the following:
``(A) Health insurance coverage.--To assist an eligible
individual and such individual's qualifying family members in
enrolling in qualified health insurance.
``(B) Administrative and start-up expenses.--To pay the
administrative expenses related to the enrollment of eligible
individuals and such individuals' qualifying family members in
qualified health insurance, including--
``(i) eligibility verification activities;
``(ii) the notification of eligible individuals of
available qualified health insurance options;
``(iii) processing qualified health insurance costs
credit eligibility certificates provided for under section
7527 of the Internal Revenue Code of 1986;
``(iv) providing assistance to eligible individuals in
enrolling in qualified health insurance;
``(v) the development or installation of necessary data
management systems; and
``(vi) any other expenses determined appropriate by the
Secretary, including start-up costs and on going
administrative expenses to carry out clauses (iv) through
(ix) of paragraph (2)(A).
``(2) Qualified health insurance.--For purposes of this
subsection and subsection (g)--
``(A) In general.--The term `qualified health insurance'
means any of the following:
``(i) Coverage under a COBRA continuation provision (as
defined in section 733(d)(1) of the Employee Retirement
Income Security Act of 1974).
``(ii) State-based continuation coverage provided by
the State under a State law that requires such coverage.
``(iii) Coverage offered through a qualified State high
risk pool (as defined in section 2744(c)(2) of the Public
Health Service Act).
``(iv) Coverage under a health insurance program
offered for State employees.
``(v) Coverage under a State-based health insurance
program that is comparable to the health insurance program
offered for State employees.
``(vi) Coverage through an arrangement entered into by
a State and--
``(I) a group health plan (including such a plan
which is a multiemployer plan as defined in section
3(37) of the Employee Retirement Income Security Act of
1974),
``(II) an issuer of health insurance coverage,
``(III) an administrator, or
``(IV) an employer.
``(vii) Coverage offered through a State arrangement
with a private sector health care coverage purchasing pool.
``(viii) Coverage under a State-operated health plan
that does not receive any Federal financial participation.
``(ix) Coverage under a group health plan that is
available through the employment of the eligible
individual's spouse.
``(x) In the case of any eligible individual and such
individual's qualifying family members, coverage under
individual health insurance if the eligible individual was
covered under individual health insurance during the entire
30-day period that ends on the date that such individual
became separated from the employment which qualified such
individual for--
``(I) in the case of an eligible TAA recipient, the
allowance described in section 35(c)(2) of the Internal
Revenue Code of 1986,
``(II) in the case of an eligible alternative TAA
recipient, the benefit described in section 35(c)(3)(B)
of such Code, or
``(III) in the case of any eligible PBGC pension
recipient, the benefit described in section 35(c)(4)(B)
of such Code.
For purposes of this clause, the term `individual health
insurance' means any insurance which constitutes medical
care offered to individuals other than in connection with a
group health plan and does not include Federal- or State-
based health insurance coverage.
``(B) Requirements for state-based coverage.--
``(i) In general.--The term `qualified health
insurance' does not include any coverage described in
clauses (ii) through (viii) of subparagraph (A) unless the
State involved has elected to have such coverage treated as
qualified health insurance under this paragraph and such
coverage meets the following requirements:
``(I) Guaranteed issue.--Each qualifying individual
is guaranteed enrollment if the individual pays the
premium for enrollment or provides a qualified health
insurance costs credit eligibility certificate
described in section 7527 of the Internal Revenue Code
of 1986 and pays the remainder of such premium.
``(II) No imposition of preexisting condition
exclusion.--No pre-existing condition limitations are
imposed with respect to any qualifying individual.
``(III) Nondiscriminatory premium.--The total
premium (as determined without regard to any subsidies)
with respect to a qualifying individual may not be
greater than the total premium (as so determined) for a
similarly situated individual who is not a qualifying
individual.
``(IV) Same benefits.--Benefits under the coverage
are the same as (or substantially similar to) the
benefits provided to similarly situated individuals who
are not qualifying individuals.
``(ii) Qualifying individual.--For purposes of this
subparagraph, the term `qualifying individual' means--
``(I) an eligible individual for whom, as of the
date on which the individual seeks to enroll in clauses
(ii) through (viii) of subparagraph (A), the aggregate
of the periods of creditable coverage (as defined in
section 9801(c) of the Internal Revenue Code of 1986)
is 3 months or longer and who, with respect to any
month, meets the requirements of clauses (iii) and (iv)
of section 35(b)(1)(A) of such Code; and
``(II) the qualifying family members of such
eligible individual.
``(C) Exception.--The term `qualified health insurance'
shall not include--
``(i) a flexible spending or similar arrangement, and
``(ii) any insurance if substantially all of its
coverage is of excepted benefits described in section
733(c) of the Employee Retirement Income Security Act of
1974.
``(3) Availability of funds.--
``(A) Expedited procedures.--With respect to applications
submitted by States or entities for grants under this
subsection, the Secretary shall--
``(i) not later than 15 days after the date on which
the Secretary receives a completed application from a State
or entity, notify the State or entity of the determination
of the Secretary with respect to the approval or
disapproval of such application;
``(ii) in the case of an application of a State or
other entity that is disapproved by the Secretary, provide
technical assistance, at the request of the State or
entity, in a timely manner to enable the State or entity to
submit an approved application; and
``(iii) develop procedures to expedite the provision of
funds to States and entities with approved applications.
``(B) Availability and distribution of funds.--The
Secretary shall ensure that funds made available under section
174(c)(1)(A) to carry out subsection (a)(4)(A) are available to
States and entities throughout the period described in section
174(c)(2)(A).
``(4) Eligible individual defined.--For purposes of this
subsection and subsection (g), the term `eligible individual'
means--
``(A) an eligible TAA recipient (as defined in section
35(c)(2) of the Internal Revenue Code of 1986),
``(B) an eligible alternative TAA recipient (as defined in
section 35(c)(3) of the Internal Revenue Code of 1986), and
``(C) an eligible PBGC pension recipient (as defined in
section 35(c)(4) of the Internal Revenue Code of 1986),
who, as of the first day of the month, does not have other
specified coverage and is not imprisoned under Federal, State, or
local authority.
``(5) Qualifying family member defined.--For purposes of this
subsection and subsection (g)--
``(A) In general.--The term `qualifying family member'
means--
``(i) the eligible individual's spouse, and
``(ii) any dependent of the eligible individual with
respect to whom the individual is entitled to a deduction
under section 151(c) of the Internal Revenue Code of 1986.
Such term does not include any individual who has other
specified coverage.
``(B) Special dependency test in case of divorced parents,
etc.--If paragraph (2) or (4) of section 152(e) of such Code
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 subparagraph (A)(ii)
with respect to the custodial parent (within the meaning of
section 152(e)(1) of such Code) and not with respect to the
noncustodial parent.
``(6) State.--For purposes of this subsection and subsection
(g), the term `State' includes an entity as defined in subsection
(c)(1)(B).
``(7) Other specified coverage.--For purposes of this
subsection, an individual has other specified coverage for any
month if, as of the first day of such month--
``(A) Subsidized coverage.--
``(i) In general.--Such individual is covered under any
insurance which constitutes medical care (except insurance
substantially all of the coverage of which is of excepted
benefits described in section 9832(c) of the Internal
Revenue Code of 1986) 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 of such Code)
is paid or incurred by the employer.
``(ii) Eligible alternative taa recipients.--In the
case of an eligible alternative TAA recipient (as defined
in section 35(c)(3) of the Internal Revenue Code of 1986),
such individual is either--
``(I) eligible for coverage under any qualified
health insurance (other than insurance described in
clause (i), (ii), or (vi) of paragraph (2)(A)) under
which at least 50 percent of the cost of coverage
(determined under section 4980B(f)(4) of such Code) is
paid or incurred by an employer (or former employer) of
the taxpayer or the taxpayer's spouse, or
``(II) covered under any such qualified health
insurance under which any portion of the cost of
coverage (as so determined) is paid or incurred by an
employer (or former employer) of the taxpayer or the
taxpayer's spouse.
``(iii) Treatment of cafeteria plans.--For purposes of
clauses (i) and (ii), the cost of coverage shall be treated
as paid or incurred by an employer to the extent the
coverage is in lieu of a right to receive cash or other
qualified benefits under a cafeteria plan (as defined in
section 125(d) of the Internal Revenue Code of 1986).
``(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 (other than under section 1928 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.
``(g) Interim Health Insurance Coverage and Other Assistance.--
``(1) In general.--Funds made available to a State or entity
under paragraph (4)(B) of subsection (a) may be used by the State
or entity to provide assistance and support services to eligible
individuals, including health care coverage to the extent provided
under subsection (f)(1)(A), transportation, child care, dependent
care, and income assistance.
``(2) Income support.--With respect to any income assistance
provided to an eligible individual with such funds, such assistance
shall supplement and not supplant other income support or
assistance provided under chapter 2 of title II of the Trade Act of
1974 (19 U.S.C. 2271 et seq.) (as in effect on the day before the
effective date of the Trade Act of 2002) or the unemployment
compensation laws of the State where the eligible individual
resides.
``(3) Health insurance coverage.--With respect to any
assistance provided to an eligible individual with such funds in
enrolling in qualified health insurance, the following rules shall
apply:
``(A) The State or entity may provide assistance in
obtaining such coverage to the eligible individual and to such
individual's qualifying family members.
``(B) Such assistance shall supplement and may not supplant
any other State or local funds used to provide health care
coverage and may not be included in determining the amount of
non-Federal contributions required under any program.
``(4) Availability of funds.--
``(A) Expedited procedures.--With respect to applications
submitted by States or entities for grants under this
subsection, the Secretary shall--
``(i) not later than 15 days after the date on which
the Secretary receives a completed application from a State
or entity, notify the State or entity of the determination
of the Secretary with respect to the approval or
disapproval of such application;
``(ii) in the case of an application of a State or
entity that is disapproved by the Secretary, provide
technical assistance, at the request of the State or
entity, in a timely manner to enable the State or entity to
submit an approved application; and
``(iii) develop procedures to expedite the provision of
funds to States and entities with approved applications.
``(B) Availability and distribution of funds.--The
Secretary shall ensure that funds made available under section
174(c)(1)(B) to carry out subsection (a)(4)(B) are available to
States and entities throughout the period described in section
174(c)(2)(B).
``(5) Inclusion of certain individuals as eligible
individuals.--For purposes of this subsection, the term `eligible
individual' includes an individual who is a member of a group of
workers certified after April 1, 2002, under chapter 2 of title II
of the Trade Act of 1974 (as in effect on the day before the
effective date of the Trade Act of 2002) and is participating in
the trade adjustment allowance program under such chapter (as so in
effect) or who would be determined to be participating in such
program under such chapter (as so in effect) if such chapter were
applied without regard to section 231(a)(3)(B) of the Trade Act of
1974 (as so in effect).''.
(c) Authorization of Appropriations.--Section 174 of the Workforce
Investment Act of 1998 (29 U.S.C. 2919) is amended by adding at the end
the following:
``(c) Assistance for Eligible Workers.--
``(1) Authorization and appropriation for fiscal year 2002.--
There are authorized to be appropriated and appropriated--
``(A) to carry out subsection (a)(4)(A) of section 173,
$10,000,000 for fiscal year 2002; and
``(B) to carry out subsection (a)(4)(B) of section 173,
$50,000,000 for fiscal year 2002.
``(2) Authorization of appropriations for subsequent fiscal
years.--There are authorized to be appropriated--
``(A) to carry out subsection (a)(4)(A) of section 173,
$60,000,000 for each of fiscal years 2003 through 2007; and
``(B) to carry out subsection (a)(4)(B) of section 173--
``(i) $100,000,000 for fiscal year 2003; and
``(ii) $50,000,000 for fiscal year 2004.
``(3) Availability of funds.--Funds appropriated pursuant to--
``(A) paragraphs (1)(A) and (2)(A) for each fiscal year
shall, notwithstanding section 189(g), remain available for
obligation during the pendency of any outstanding claim under
the Trade Act of 1974, as amended by the Trade Act of 2002; and
``(B) paragraph (1)(B) and (2)(B), for each fiscal year
shall, notwithstanding section 189(g), remain available during
the period that begins on the date of enactment of the Trade
Act of 2002 and ends on September 30, 2004.''.
(d) Conforming Amendment.--Section 132(a)(2)(A) of the Workforce
Investment Act of 1998 (29 U.S.C. 2862(a)(2)(A)) is amended by
inserting ``, other than under subsection (a)(4), (f), and (g)'' after
``grants''.
(e) Temporary Extension of COBRA Election Period for Certain
Individuals.--
(1) ERISA amendments.--Section 605 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1165) is amended--
(A) by inserting ``(a) In General.--'' before ``For
purposes of this part''; and
(B) by adding at the end the following:
``(b) Temporary Extension of COBRA Election Period for Certain
Individuals.--
``(1) In general.--In the case of a nonelecting TAA-eligible
individual and notwithstanding subsection (a), such individual may
elect continuation coverage under this part during the 60-day
period that begins on the first day of the month in which the
individual becomes a TAA-eligible individual, but only if such
election is made not later than 6 months after the date of the TAA-
related loss of coverage.
``(2) Commencement of coverage; no reach-back.--Any
continuation coverage elected by a TAA-eligible individual under
paragraph (1) shall commence at the beginning of the 60-day
election period described in such paragraph and shall not include
any period prior to such 60-day election period.
``(3) Preexisting conditions.--With respect to an individual
who elects continuation coverage pursuant to paragraph (1), the
period--
``(A) beginning on the date of the TAA-related loss of
coverage, and
``(B) ending on the first day of the 60-day election period
described in paragraph (1),
shall be disregarded for purposes of determining the 63-day periods
referred to in section 701(c)(2), section 2701(c)(2) of the Public
Health Service Act, and section 9801(c)(2) of the Internal Revenue
Code of 1986.
``(4) Definitions.--For purposes of this subsection:
``(A) Nonelecting taa-eligible individual.--The term
`nonelecting TAA-eligible individual' means a TAA-eligible
individual who--
``(i) has a TAA-related loss of coverage; and
``(ii) did not elect continuation coverage under this
part during the TAA-related election period.
``(B) TAA-eligible individual.--The term `TAA-eligible
individual' means--
``(i) an eligible TAA recipient (as defined in
paragraph (2) of section 35(c) of the Internal Revenue Code
of 1986), and
``(ii) an eligible alternative TAA recipient (as
defined in paragraph (3) of such section).
``(C) TAA-related election period.--The term `TAA-related
election period' means, with respect to a TAA-related loss of
coverage, the 60-day election period under this part which is a
direct consequence of such loss.
``(D) TAA-related loss of coverage.--The term `TAA-related
loss of coverage' means, with respect to an individual whose
separation from employment gives rise to being an TAA-eligible
individual, the loss of health benefits coverage associated
with such separation.''.
(2) PHSA amendments.--Section 2205 of the Public Health Service
Act (42 U.S.C. 300bb-5) is amended--
(A) by inserting ``(a) In General.--'' before ``For
purposes of this title''; and
(B) by adding at the end the following:
``(b) Temporary Extension of COBRA Election Period for Certain
Individuals.--
``(1) In general.--In the case of a nonelecting TAA-eligible
individual and notwithstanding subsection (a), such individual may
elect continuation coverage under this title during the 60-day
period that begins on the first day of the month in which the
individual becomes a TAA-eligible individual, but only if such
election is made not later than 6 months after the date of the TAA-
related loss of coverage.
``(2) Commencement of coverage; no reach-back.--Any
continuation coverage elected by a TAA-eligible individual under
paragraph (1) shall commence at the beginning of the 60-day
election period described in such paragraph and shall not include
any period prior to such 60-day election period.
``(3) Preexisting conditions.--With respect to an individual
who elects continuation coverage pursuant to paragraph (1), the
period--
``(A) beginning on the date of the TAA-related loss of
coverage, and
``(B) ending on the first day of the 60-day election period
described in paragraph (1),
shall be disregarded for purposes of determining the 63-day periods
referred to in section 2701(c)(2), section 701(c)(2) of the
Employee Retirement Income Security Act of 1974, and section
9801(c)(2) of the Internal Revenue Code of 1986.
``(4) Definitions.--For purposes of this subsection:
``(A) Nonelecting taa-eligible individual.--The term
`nonelecting TAA-eligible individual' means a TAA-eligible
individual who--
``(i) has a TAA-related loss of coverage; and
``(ii) did not elect continuation coverage under this
part during the TAA-related election period.
``(B) TAA-eligible individual.--The term `TAA-eligible
individual' means--
``(i) an eligible TAA recipient (as defined in
paragraph (2) of section 35(c) of the Internal Revenue Code
of 1986), and
``(ii) an eligible alternative TAA recipient (as
defined in paragraph (3) of such section).
``(C) TAA-related election period.--The term `TAA-related
election period' means, with respect to a TAA-related loss of
coverage, the 60-day election period under this part which is a
direct consequence of such loss.
``(D) TAA-related loss of coverage.--The term `TAA-related
loss of coverage' means, with respect to an individual whose
separation from employment gives rise to being an TAA-eligible
individual, the loss of health benefits coverage associated
with such separation.''.
(3) IRC amendments.--Paragraph (5) of section 4980B(f) of the
Internal Revenue Code of 1986 (relating to election) is amended by
adding at the end the following:
``(C) Temporary extension of cobra election period for
certain individuals.--
``(i) In general.--In the case of a nonelecting TAA-
eligible individual and notwithstanding subparagraph (A),
such individual may elect continuation coverage under this
subsection during the 60-day period that begins on the
first day of the month in which the individual becomes a
TAA-eligible individual, but only if such election is made
not later than 6 months after the date of the TAA-related
loss of coverage.
``(ii) Commencement of coverage; no reach-back.--Any
continuation coverage elected by a TAA-eligible individual
under clause (i) shall commence at the beginning of the 60-
day election period described in such paragraph and shall
not include any period prior to such 60-day election
period.
``(iii) Preexisting conditions.--With respect to an
individual who elects continuation coverage pursuant to
clause (i), the period--
``(I) beginning on the date of the TAA-related loss
of coverage, and
``(II) ending on the first day of the 60-day
election period described in clause (i),
shall be disregarded for purposes of determining the 63-day
periods referred to in section 9801(c)(2), section
701(c)(2) of the Employee Retirement Income Security Act of
1974, and section 2701(c)(2) of the Public Health Service
Act.
``(iv) Definitions.--For purposes of this subsection:
``(I) Nonelecting taa-eligible individual.--The
term `nonelecting TAA-eligible individual' means a TAA-
eligible individual who has a TAA-related loss of
coverage and did not elect continuation coverage under
this subsection during the TAA-related election period.
``(II) TAA-eligible individual.--The term `TAA-
eligible individual' means an eligible TAA recipient
(as defined in paragraph (2) of section 35(c)) and an
eligible alternative TAA recipient (as defined in
paragraph (3) of such section).
``(III) TAA-related election period.--The term
`TAA-related election period' means, with respect to a
TAA-related loss of coverage, the 60-day election
period under this subsection which is a direct
consequence of such loss.
``(IV) TAA-related loss of coverage.--The term
`TAA-related loss of coverage' means, with respect to
an individual whose separation from employment gives
rise to being an TAA-eligible individual, the loss of
health benefits coverage associated with such
separation.''.
(f) Rule of Construction.--Nothing in this title (or the amendments
made by this title), other than provisions relating to COBRA
continuation coverage and reporting requirements, shall be construed as
creating any new mandate on any party regarding health insurance
coverage.
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) by striking subparagraph (A), and inserting the following:
``(A) $1,365,456,000 for fiscal year 2003.''; and
(2) by striking subparagraph (B), and inserting the following:
``(B) $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) by striking clause (i), and inserting the following:
``(i) $1,642,602,000 for fiscal year 2003.''; and
(B) by striking clause (ii), and inserting the following:
``(ii) $1,683,667,050 for fiscal year 2004.''.
(2) Automated commercial environment computer system.--Of the
amount made available for each of fiscal years 2003 and 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 the end of 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) by striking subparagraph (A), and inserting the following:
``(A) $170,829,000 for fiscal year 2003.''; and
(2) by striking subparagraph (B), and inserting the following:
``(B) $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 2003.--Of the amounts made available for fiscal
year 2003 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 2004.--Of the amounts made available for fiscal
year 2004 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 2003 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
2003 and 2004 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 and performance indicators, and shall
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 2003 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 2003 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 that is less than $2,000 (or such
higher amount as the Secretary of the Treasury may set by
regulation pursuant to section 498 of the Tariff Act of 1930),
except such items entered for transportation and exportation or
immediate exportation''; and
(B) by striking clause (ii), and inserting the following:
``(ii) Subject to the provisions of subparagraph (B),
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) Beginning in fiscal year 2004, the Secretary of
the Treasury may adjust (not more than once per fiscal year)
the amount described in subparagraph (A)(ii) to an amount that
is not less than $.35 and 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) Notwithstanding section 451 of the Tariff Act of
1930, 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 and for
providing services at express consignment carrier facilities or
centralized hub facilities, except that the Customs Service may
require such facilities 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) of this subparagraph shall be paid on a quarterly
basis by the carrier using the facility 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) of this subparagraph
shall, in accordance with section 524 of the Tariff Act of
1930, be deposited in the Customs User Fee Account and shall be
used to directly reimburse each 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) of this
subparagraph 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.''.
SEC. 339. AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS STAFFING.
There are authorized to be appropriated to the Department of
Treasury such sums as may be necessary to provide an increase in the
annual rate of basic pay--
(1) for all journeyman Customs inspectors and Canine
Enforcement Officers who have completed at least one year's service
and are receiving an annual rate of basic pay for positions at GS-9
of the General Schedule under section 5332 of title 5, United
States Code, from the annual rate of basic pay payable for
positions at GS-9 of the General Schedule under such section 5332,
to an annual rate of basic pay payable for positions at GS-11 of
the General Schedule under such section 5332; and
(2) for the support staff associated with the personnel
described in subparagraph (A), at the appropriate GS level of the
General Schedule under such section 5332.
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 and used reasonable means
while effectuating such search.''.
(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 Customs 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 respond
directly 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 OTHER
IMPROVED CUSTOMS REPORTING PROCEDURES.
(a) Cargo Information.--
(1) In general.--Subject to paragraphs (2) and (3), not later
than 1 year after the date of enactment of this Act, the Secretary
shall promulgate regulations providing for the transmission to the
Customs Service, through an electronic data interchange system, of
information pertaining to cargo destined for importation into the
United States or exportation from the United States, prior to such
importation or exportation.
(2) Information required.--The information required by the
regulations promulgated pursuant to paragraph (1) under the
parameters set forth in paragraph (3) shall be such information as
the Secretary determines to be reasonably necessary to ensure
aviation, maritime, and surface transportation safety and security
pursuant to those laws enforced and administered by the Customs
Service.
(3) Parameters.--In developing regulations pursuant to
paragraph (1), the Secretary shall adhere to the following
parameters:
(A) The Secretary shall solicit comments from and consult
with a broad range of parties likely to be affected by the
regulations, including importers, exporters, carriers, customs
brokers, and freight forwarders, among other interested
parties.
(B) In general, the requirement to provide particular
information shall be imposed on the party most likely to have
direct knowledge of that information. Where requiring
information from the party with direct knowledge of that
information is not practicable, the regulations shall take into
account how, under ordinary commercial practices, information
is acquired by the party on which the requirement is imposed,
and whether and how such party is able to verify the
information. Where information is not reasonably verifiable by
the party on which a requirement is imposed, the regulations
shall permit that party to transmit information on the basis of
what it reasonably believes to be true.
(C) The Secretary shall take into account the existence of
competitive relationships among the parties on which
requirements to provide particular information are imposed.
(D) Where the regulations impose requirements on carriers
of cargo, they shall take into account differences among
different modes of transportation, including differences in
commercial practices, operational characteristics, and
technological capacity to collect and transmit information
electronically.
(E) The regulations shall take into account the extent to
which the technology necessary for parties to transmit and the
Customs Service to receive and analyze data in a timely fashion
is available. To the extent that the Secretary determines that
the necessary technology will not be widely available to
particular modes of transportation or other affected parties
until after promulgation of the regulations, the regulations
shall provide interim requirements appropriate for the
technology that is available at the time of promulgation.
(F) The information collected pursuant to the regulations
shall be used exclusively for ensuring aviation, maritime, and
surface transportation safety and security, and shall not be
used for determining entry or for any other commercial
enforcement purposes.
(G) The regulations shall protect the privacy of business
proprietary and any other confidential information provided to
the Customs Service. However, this parameter does not repeal,
amend, or otherwise modify other provisions of law relating to
the public disclosure of information transmitted to the Customs
Service.
(H) In determining the timing for transmittal of any
information, the Secretary shall balance likely impact on flow
of commerce with impact on aviation, maritime, and surface
transportation safety and security. With respect to
requirements that may be imposed on carriers of cargo, the
timing for transmittal of information shall take into account
differences among different modes of transportation, as
described in subparagraph (D).
(I) Where practicable, the regulations shall avoid imposing
requirements that are redundant with one another or that are
redundant with requirements in other provisions of law.
(J) The Secretary shall determine whether it is appropriate
to provide transition periods between promulgation of the
regulations and the effective date of the regulations and shall
prescribe such transition periods in the regulations, as
appropriate. The Secretary may determine that different
transition periods are appropriate for different classes of
affected parties.
(K) With respect to requirements imposed on carriers, the
Secretary, in consultation with the Postmaster General, shall
determine whether it is appropriate to impose the same or
similar requirements on shipments by the United States Postal
Service. If the Secretary determines that such requirements are
appropriate, then they shall be set forth in the regulations.
(L) Not later than 60 days prior to promulgation of the
regulations, the Secretary shall transmit to the Committees on
Finance and Commerce, Science, and Transportation of the Senate
and the Committees on Ways and Means and Transportation and
Infrastructure of the House of Representatives a report setting
forth--
(i) the proposed regulations;
(ii) an explanation of how particular requirements in
the proposed regulations meet the needs of aviation,
maritime, and surface transportation safety and security;
(iii) an explanation of how the Secretary expects the
proposed regulations to affect the commercial practices of
affected parties; and
(iv) an explanation of how the proposed regulations
address particular comments received from interested
parties.
(b) Documentation of Waterborne Cargo.--Part II of title IV of the
Tariff Act of 1930 is amended by inserting after section 431 the
following new section:
``SEC. 431A. DOCUMENTATION OF WATERBORNE CARGO.
``(a) Applicability.--This section shall apply to all cargo to be
exported that is moved by a vessel carrier from a port in the United
States.
``(b) Documentation Required.--(1) No shipper of cargo subject to
this section (including an ocean transportation intermediary that is a
non-vessel-operating common carrier (as defined in section 3(17)(B) of
the Shipping Act of 1984 (46 U.S.C. App. 1702(17)(B)) may tender or
cause to be tendered to a vessel carrier cargo subject to this section
for loading on a vessel in a United States port, unless such cargo is
properly documented pursuant to this subsection.
``(2) For the purposes of this subsection, cargo shall be
considered properly documented if the shipper submits to the vessel
carrier or its agent a complete set of shipping documents no later than
24 hours after the cargo is delivered to the marine terminal operator,
but under no circumstances later than 24 hours prior to departure of
the vessel.
``(3) A complete set of shipping documents shall include--
``(A) for shipments for which a shipper's export declaration is
required, a copy of the export declaration or, if the shipper files
such declarations electronically in the Automated Export System,
the complete bill of lading, and the master or equivalent shipping
instructions, including the Internal Transaction Number (ITN); or
``(B) for shipments for which a shipper's export declaration is
not required, a shipper's export declaration exemption statement
and such other documents or information as the Secretary may by
regulation prescribe.
``(4) The Secretary shall by regulation prescribe the time, manner,
and form by which shippers shall transmit documents or information
required under this subsection to the Customs Service.
``(c) Loading Undocumented Cargo Prohibited.--
``(1) No marine terminal operator (as defined in section 3(14)
of the Shipping Act of 1984 (46 U.S.C. App. 1702(14))) may load, or
cause to be loaded, any cargo subject to this section on a vessel
unless instructed by the vessel carrier operating the vessel that
such cargo has been properly documented in accordance with this
section.
``(2) When cargo is booked by 1 vessel carrier to be
transported on the vessel of another vessel carrier, the booking
carrier shall notify the operator of the vessel that the cargo has
been properly documented in accordance with this section. The
operator of the vessel may rely on such notification in releasing
the cargo for loading aboard the vessel.
``(d) Reporting of Undocumented Cargo.--A vessel carrier shall
notify the Customs Service of any cargo tendered to such carrier that
is not properly documented pursuant to this section and that has
remained in the marine terminal for more than 48 hours after being
delivered to the marine terminal, and the location of the cargo in the
marine terminal. For vessel carriers that are members of vessel sharing
agreements (or any other arrangement whereby a carrier moves cargo on
another carrier's vessel), the vessel carrier accepting the booking
shall be responsible for reporting undocumented cargo, without regard
to whether it operates the vessel on which the transportation is to be
made.
``(e) Assessment of Penalties.--Whoever is found to have violated
subsection (b) of this section shall be liable to the United States for
civil penalties in a monetary amount up to the value of the cargo, or
the actual cost of the transportation, whichever is greater.
``(f) Seizure of Undocumented Cargo.--
``(1) Any cargo that is not properly documented pursuant to
this section and has remained in the marine terminal for more than
48 hours after being delivered to the marine terminal operator
shall be subject to search, seizure, and forfeiture.
``(2) The shipper of any such cargo is liable to the marine
terminal operator and to the ocean carrier for demurrage and other
applicable charges for any undocumented cargo which has been
notified to or searched or seized by the Customs Service for the
entire period the cargo remains under the order and direction of
the Customs Service. Unless the cargo is seized by the Customs
Service and forfeited, the marine terminal operator and the ocean
carrier shall have a lien on the cargo for the amount of the
demurrage and other charges.
``(g) Effect on Other Provisions.--Nothing in this section shall be
construed, interpreted, or applied to relieve or excuse any party from
compliance with any obligation or requirement arising under any other
law, regulation, or order with regard to the documentation or carriage
of cargo.''.
(c) Secretary.--For purposes of this section, the term
``Secretary'' means the Secretary of the Treasury. If, at the time the
regulations required by subsection (a)(1) are promulgated, the Customs
Service is no longer located in the Department of the Treasury, then
the Secretary of the Treasury shall exercise the authority under
subsection (a) jointly with the Secretary of the Department in which
the Customs Service is located.
SEC. 343A. SECURE SYSTEMS OF TRANSPORTATION.
(a) Joint Task Force.--The Secretary of the Treasury shall
establish a joint task force to evaluate, prototype, and certify secure
systems of transportation. The joint task force shall be comprised of
officials from the Department of Transportation and the Customs
Service, and any other officials that the Secretary deems appropriate.
The task force shall establish a program to evaluate and certify secure
systems of international intermodal transport no later than 1 year
after the date of enactment of this Act. The task force shall solicit
and consider input from a broad range of interested parties.
(b) Program Requirements.--At a minimum the program referred to in
subsection (a) shall require certified systems of international
intermodal transport to be significantly more secure than existing
transportation programs, and the program shall--
(1) establish standards and a process for screening and
evaluating cargo prior to import into or export from the United
States;
(2) establish standards and a process for a system of securing
cargo and monitoring it while in transit;
(3) establish standards and a process for allowing the United
States Government to ensure and validate compliance with the
program elements; and
(4) include any other elements that the task force deems
necessary to ensure the security and integrity of the international
intermodal transport movements.
(c) Recognition of Certified Systems.--
(1) Secretary of the Treasury.--The Secretary of the Treasury
shall recognize certified systems of intermodal transport in the
requirements of a national security plan for United States
seaports, and in the provisions requiring planning to reopen United
States ports for commerce.
(2) Commissioner of Customs.--The Commissioner of Customs shall
recognize certified systems of intermodal transport in the
evaluation of cargo risk for purposes of United States imports and
exports.
(d) Report.--Within 1 year after the program described in
subsection (a) is implemented, the Secretary of the Treasury shall
transmit a report to the Committees on Commerce, Science, and
Transportation and Finance of the Senate and the Committees on
Transportation and Infrastructure and Ways and Means of the House of
Representatives that--
(1) evaluates the program and its requirements;
(2) states the Secretary's views as to whether any procedure,
system, or technology evaluated as part of the program offers a
higher level of security than under existing procedures;
(3) states the Secretary's views as to the integrity of the
procedures, technology, or systems evaluated as part of the
program; and
(4) makes a recommendation with respect to whether the program,
or any procedure, system, or technology should be incorporated in a
nationwide system for certified systems of intermodal transport.
SEC. 344. BORDER SEARCH AUTHORITY FOR CERTAIN CONTRABAND IN OUTBOUND
MAIL.
(a) In General.--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 (relating to exportation of controlled substances)
(21 U.S.C. 953).
``(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 Weighing in Excess
of 16 Ounces.--
``(1) In general.--Mail weighing in excess of 16 ounces sealed
against inspection under the postal laws and regulations of the United
States may be searched by a Customs officer, subject to paragraph (2),
if there is 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) Limitation.--No person acting under the 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
of the Federal Rules of Criminal Procedure; or
``(B) the sender or addressee has given written
authorization for such reading.
``(d) Search of Mail Sealed Against Inspection Weighing 16 Ounces
or Less.--Notwithstanding any other provision of this section,
subsection (a)(1) shall not apply to mail weighing 16 ounces or less
sealed against inspection under the postal laws and regulations of the
United States.''.
(b) Certification by Secretary.--Not later than 3 months after the
date of enactment of this section, the Secretary of State shall
determine whether the application of section 583 of the Tariff Act of
1930 to foreign mail transiting the United States that is imported or
exported by the United States Postal Service is being handled in a
manner consistent with international law and any international
obligation of the United States. Section 583 of such Act shall not
apply to such foreign mail unless the Secretary certifies to Congress
that the application of such section 583 is consistent with
international law and any international obligation of the United
States.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take effect
on the date of enactment of this Act.
(2) Certification with respect to foreign mail.--The provisions
of section 583 of the Tariff Act of 1930 relating to foreign mail
transiting the United States that is imported or exported by the
United States Postal Service shall not take effect until the
Secretary of State certifies to Congress, pursuant to subsection
(b), that the application of such section 583 is consistent with
international law and any international obligation of the United
States.
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 2003.
(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 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
transshipment (as described in section 351(c)) enforcement
operations, outreach, and education of the Customs Service
$9,500,000 for fiscal year 2003.
(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 the 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, outreach, education, 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 in pursuing 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 2003 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 African
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 African 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) by striking clause (i), and inserting the following:
``(i) $32,300,000 for fiscal year 2003.''; and
(C) by striking clause (ii), and inserting the following:
``(ii) $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 2003 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)(A)) is amended--
(1) by striking clause (i), and inserting the following:
``(i) $54,000,000 for fiscal year 2003.''; and
(2) by striking clause (ii), and inserting the following:
``(ii) $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.''.
SEC. 383. PAYMENT OF DUTIES AND FEES.
Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505(a)) is
amended to read as follows:
``(a) Deposit of Estimated Duties and Fees.--Unless the entry is
subject to a periodic payment or the merchandise is entered for
warehouse or transportation, or under bond, the importer of record
shall deposit with the Customs Service at the time of entry, or at such
later time as the Secretary may prescribe by regulation (but not later
than 10 working days after entry or release) the amount of duties and
fees estimated to be payable on such merchandise. As soon as a periodic
payment module of the Automated Commercial Environment is developed,
but no later than October 1, 2004, a participating importer of record,
or the importer's filer, may deposit estimated duties and fees for
entries of merchandise no later than the 15th day of the month
following the month in which the merchandise is entered or released,
whichever comes first.''.
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) Support for continued trade expansion requires that dispute
settlement procedures under international trade agreements not add
to or diminish the rights and obligations provided in such
agreements. Therefore--
(A) the recent pattern of decisions by dispute settlement
panels of the WTO and the Appellate Body to impose obligations
and restrictions on the use of antidumping, countervailing, and
safeguard measures by WTO members under the Antidumping
Agreement, the Agreement on Subsidies and Countervailing
Measures, and the Agreement on Safeguards has raised concerns;
and
(B) the Congress is concerned that dispute settlement
panels of the WTO and the Appellate Body 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 that 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 ILO (as
defined in section 2113(6)) and an understanding of the
relationship between trade and worker rights;
(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;
(8) to ensure that trade agreements afford small businesses
equal access to international markets, equitable trade benefits,
and expanded export market opportunities, and provide for the
reduction or elimination of trade barriers that disproportionately
impact small businesses; and
(9) to promote universal ratification and full compliance with
ILO Convention No. 182 Concerning the Prohibition and Immediate
Action for the Elimination of the Worst Forms of Child Labor.
(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.--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, the principal negotiating objectives of the United States
regarding foreign investment are to reduce or eliminate artificial
or trade-distorting barriers to foreign investment, while ensuring
that foreign investors in the United States are not accorded
greater substantive rights with respect to investment protections
than United States investors in the United States, and 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) seeking to establish standards for fair and equitable
treatment consistent with United States legal principles and
practice, including the principle of due process;
(F) providing meaningful procedures for resolving
investment disputes;
(G) seeking to improve mechanisms used to resolve disputes
between an investor and a government through--
(i) mechanisms to eliminate frivolous claims and to
deter the filing of frivolous claims;
(ii) procedures to ensure the efficient selection of
arbitrators and the expeditious disposition of claims;
(iii) procedures to enhance opportunities for public
input into the formulation of government positions; and
(iv) providing for an appellate body or similar
mechanism to provide coherence to the interpretations of
investment provisions in trade agreements; 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;
(B) to secure fair, equitable, and nondiscriminatory market
access opportunities for United States persons that rely upon
intellectual property protection; and
(C) to respect the Declaration on the TRIPS Agreement and
Public Health, adopted by the World Trade Organization at the
Fourth Ministerial Conference at Doha, Qatar on November 14,
2001.
(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 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;
(xv) maintaining bona fide food assistance programs and
preserving United States market development and export credit
programs; and
(xvi) striving to complete a general multilateral round in
the World Trade Organization by January 1, 2005, and seeking
the broadest market access possible in multilateral, regional,
and bilateral negotiations, recognizing the effect that
simultaneous sets of negotiations may have on United States
import-sensitive commodities (including those subject to
tariff-rate quotas).
(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 2113(6));
(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 adherence by panels convened under the Dispute
Settlement Understanding and by the Appellate Body to the
standard of review applicable under the Uruguay Round Agreement
involved in the dispute, including greater deference, where
appropriate, to the fact-finding and technical expertise of
national investigating authorities;
(D) to seek provisions encouraging the early identification
and settlement of disputes through consultation;
(E) 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;
(F) 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
(G) 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).
(14) Trade remedy laws.--The principal negotiating objectives
of the United States with respect to trade remedy laws are--
(A) to preserve the ability of the United States to enforce
rigorously its trade laws, including the antidumping,
countervailing duty, and safeguard laws, and avoid agreements
that lessen the effectiveness of domestic and international
disciplines on unfair trade, especially dumping and subsidies,
or that lessen the effectiveness of domestic and international
safeguard provisions, 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) to address and remedy market distortions that lead to
dumping and subsidization, including overcapacity,
cartelization, and market-access barriers.
(15) Border taxes.--The principal negotiating objective of the
United States regarding border taxes is to obtain a revision of the
WTO rules with respect to the treatment of border adjustments for
internal taxes to redress the disadvantage to countries relying
primarily on direct taxes for revenue rather than indirect taxes.
(16) Textile Negotiations.--The principal negotiating
objectives of the United States with respect to trade in textiles
and apparel articles are to obtain competitive opportunities for
United States exports of textiles and apparel 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 textiles and apparel.
(17) Worst Forms of Child Labor.--The principal negotiating
objective of the United States with respect to the trade-related
aspects of the worst forms of child labor are to seek commitments
by parties to trade agreements to vigorously enforce their own laws
prohibiting the worst forms of child labor.
(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 2113(6)) and to promote compliance with ILO
Convention No. 182 Concerning the Prohibition and Immediate Action
for the Elimination of the Worst Forms of Child Labor, 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, including labor markets, modeled after Executive
Order 13141 to the extent appropriate in establishing procedures
and criteria, report to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the Senate
on such review, and make that report available to the public;
(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) direct the Secretary of Labor to 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) in connection with any trade negotiations entered into
under this Act, submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the Senate
a meaningful labor rights report of the country, or countries, with
respect to which the President is negotiating, on a time frame
determined in accordance with section 2107(b)(2)(E);
(9) 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;
(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) reduces the rate of duty below that applicable under
the Uruguay Round Agreements, on any import sensitive
agricultural product; 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 2105 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) Other reports to congress.--
(A) Report 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--
(i) its views regarding the progress that has been made
in negotiations to achieve the purposes, policies,
priorities, and objectives of this title; and
(ii) a statement of its views, and the reasons
therefor, regarding whether the extension requested under
paragraph (2) should be approved or disapproved.
(B) Report by itc.--The President shall promptly inform the
International Trade Commission of the President's decision to
submit a report to the Congress under paragraph (2). The
International Trade Commission shall submit to the Congress as
soon as practicable, but not later than May 1, 2005, a written
report that contains a review and analysis of the economic
impact on the United States of all trade agreements implemented
between the date of enactment of this Act and the date on which
the President decides to seek an extension requested under
paragraph (2).
(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-
rate quotas on the date of enactment of this Act, and
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;
(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; and
(III) whether the countries participating in the
negotiations maintain export subsidies or other programs,
policies, or practices that distort world trade in such
products and the impact of such programs, policies, and
practices on United States producers of the products;
(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.
(3) Negotiations regarding the fishing industry.--Before
initiating, or continuing, negotiations which directly relate to
fish or shellfish trade with any country, the President shall
consult with the Committee on Ways and Means and the Committee on
Resources of the House of Representatives, and the Committee on
Finance and the Committee on Commerce, Science, and Transportation
of the Senate, and shall keep the Committees apprised of
negotiations on an ongoing and timely basis.
(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.
(3) Report regarding united states trade remedy laws.--
(A) Changes in certain trade laws.--The President, at least
180 calendar days before the day on which the President enters
into a trade agreement under section 2103(b), shall report to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate--
(i) the range of proposals advanced in the negotiations
with respect to that agreement, that may be in the final
agreement, and that could require amendments to title VII
of the Tariff Act of 1930 or to chapter 1 of title II of
the Trade Act of 1974; and
(ii) how these proposals relate to the objectives
described in section 2102(b)(14).
(B) Certain agreements.--With respect to a trade agreement
entered into with Chile or Singapore, the report referred to in
subparagraph (A) shall be submitted by the President at least
90 calendar days before the day on which the President enters
into that agreement.
(C) Resolutions.--(i) At any time after the transmission of
the report under subparagraph (A), if a resolution is
introduced with respect to that report in either House of
Congress, the procedures set forth in clauses (iii) through
(vi) shall apply to that resolution if--
(I) no other resolution with respect to that report has
previously been reported in that House of Congress by the
Committee on Ways and Means or the Committee on Finance, as
the case may be, pursuant to those procedures; and
(II) no procedural disapproval resolution under section
2105(b) introduced with respect to a trade agreement
entered into pursuant to the negotiations to which the
report under subparagraph (A) relates has previously been
reported in that House of Congress by the Committee on Ways
and Means or the Committee on Finance, as the case may be.
(ii) For purposes of this subparagraph, the term
``resolution'' means only a resolution of either House of
Congress, the matter after the resolving clause of which is as
follows: ``That the ____ finds that the proposed changes to
United States trade remedy laws contained in the report of the
President transmitted to the Congress on ____ under section
2104(d)(3) of the Bipartisan Trade Promotion Authority Act of
2002 with respect to ____, are inconsistent with the
negotiating objectives described in section 2102(b)(14) of that
Act.'', with the first blank space being filled with the name
of the resolving House of Congress, the second blank space
being filled with the appropriate date of the report, and the
third blank space being filled with the name of the country or
countries involved.
(iii) Resolutions 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.
(iv) Resolutions in the Senate--
(I) may be introduced by any Member of the Senate;
(II) shall be referred to the Committee on Finance; and
(III) may not be amended.
(iv) It is not in order for the House of Representatives to
consider any resolution that is not reported by the Committee
on Ways and Means and, in addition, by the Committee on Rules.
(v) It is not in order for the Senate to consider any
resolution that is not reported by the Committee on Finance.
(vi) The provisions of section 152(d) and (e) of the Trade
Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to floor
consideration of certain resolutions in the House and Senate)
shall apply to resolutions.
(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.
(4) Disclosure of commitments.--Any agreement or other
understanding with a foreign government or governments (whether
oral or in writing) that--
(A) relates to a trade agreement with respect to which the
Congress enacts an implementing bill under trade authorities
procedures, and
(B) is not disclosed to the Congress before an implementing
bill with respect to that agreement is introduced in either
House of Congress,
shall not be considered to be part of the agreement approved by the
Congress and shall have no force and effect under United States law
or in any dispute settlement body.
(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--
(I) may be introduced by any Member of the Senate;
(II) shall be referred to the Committee on Finance; and
(III) may not be amended.
(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 reported in
that House of Congress by the Committee on Ways and Means or the
Committee on Finance, as the case may be, and if no resolution
described in section 2104(d)(3)(C)(ii) with respect to that trade
agreement has been reported in that House of Congress by the
Committee on Ways and Means or the Committee on Finance, as the
case may be, pursuant to the procedures set forth in clauses (iii)
through (vi) of such section 2104(d)(3)(C).
(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.
(D) It is not in order for the Senate to consider any
procedural disapproval resolution not reported by the Committee on
Finance.
(3) For failure to meet other requirements.--Not later than
December 31, 2002, the Secretary of Commerce, in consultation with
the Secretary of State, the Secretary of the Treasury, the Attorney
General, and the United States Trade Representative, shall transmit
to the Congress a report setting forth the strategy of the
executive branch to address concerns of the Congress regarding
whether dispute settlement panels and the Appellate Body of the WTO
have added to obligations, or diminished rights, of the United
States, as described in section 2101(b)(3). Trade authorities
procedures shall not apply to any implementing bill with respect to
an agreement negotiated under the auspices of the WTO unless the
Secretary of Commerce has issued such report in a timely manner.
(c) Rules of House of Representatives and Senate.--Subsection (b)
of this section, section 2103(c), aand section 2104(d)(3)(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 the prenegotiation
notification and consultation requirement described in section 2104(a),
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
convened under section 2107.
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 an official adviser 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 an
official adviser 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 convened
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;
(D) after the applicable trade agreement is concluded,
consultation regarding ongoing compliance and enforcement of
negotiated commitments under the trade agreement; and
(E) the time frame for submitting the report required under
section 2102(c)(8).
(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. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the International Trade Commission shall report to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives regarding the economic impact on the
United States of the trade agreements described in subsection (b).
(b) Agreements.--The trade agreements described in this subsection
are the following:
(1) The United States-Israel Free Trade Agreement.
(2) The United States-Canada Free Trade Agreement.
(3) The North American Free Trade Agreement.
(4) The Uruguay Round Agreements.
(5) The Tokyo Round of Multilateral Trade Negotiations.
SEC. 2112. INTERESTS OF SMALL BUSINESS.
The Assistant United States Trade Representative for Industry and
Telecommunications shall be responsible for ensuring that the interests
of small business are considered in all trade negotiations in
accordance with the objective described in section 2102(a)(8). It is
the sense of the Congress that the small business functions should be
reflected in the title of the Assistant United States Trade
Representative assigned the responsibility for small business.
SEC. 2113. 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) Agreement on safeguards.--The term ``Agreement on
Safeguards means the agreement referred to in section 101(d)(12) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)).
(2) Agreement on subsidies and countervailing measures.--The
term ``Agreement on Subsidies and Countervailing Measures'' means
the agreement referred to in section 101(d)(13) of the Uruguay
Round Agreements Act (19 U.S.C. 3511(d)(13)).
(4) 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)).
(5) Appellate body.--The term ``Appellate Body'' means the
Appellate Body established under Article 17.1 of the Dispute
Settlement Understanding.
(6) 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.
(7) Dispute settlement understanding.--The term ``Dispute
Settlement Understanding'' means the Understanding on Rules and
Procedures Governing the Settlement of Disputes referred to in
section 101(d)(16) of the Uruguay Round Agreements Act.
(8) 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).
(9) ILO.--The term ``ILO'' means the International Labor
Organization.
(10) Import sensitive agricultural product.--The term ``import
sensitive agricultural product'' means an agricultural product--
(A) with respect to which, as a result of the Uruguay Round
Agreements the rate of duty was the subject of tariff
reductions by the United States and, pursuant to such
Agreements, was reduced on January 1, 1995, to a rate that was
not less than 97.5 percent of the rate of duty that applied to
such article on December 31, 1994; or
(B) which was subject to a tariff-rate quota on the date of
the enactment of this Act.
(11) 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.
(12) 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)).
(13) World trade organization; wto.--The terms ``World Trade
Organization'' and ``WTO'' mean the organization established
pursuant to the WTO Agreement.
(14) WTO agreement.--The term ``WTO Agreement'' means the
Agreement Establishing the World Trade Organization entered into on
April 15, 1994.
(15) 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)).
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,
that is imported directly into the customs territory of the United
States from 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 title as eligible for purposes 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;
``(C) sugars, syrups, and sugar-containing products subject
to over-quota duty rates under applicable tariff-rate quotas;
or
``(D) tuna prepared or preserved in any manner in airtight
containers, except as provided in paragraph (4).
``(3) Apparel articles and certain textile 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 or 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 wholly formed,
or components knit-to-shape, in the United States, from
yarns wholly 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 wholly 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 value of llama,
alpaca, or vicuna.
``(III) Fabrics or yarns, to the extent that
apparel articles of such fabrics or yarns would be
eligible for preferential treatment, without regard to
the source of the fabrics or yarns, 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 wholly 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)
(unless the apparel articles are made exclusively 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 October 1, 2002, and in each of the 4 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 2 percent for the 1-year
period beginning October 1, 2002, increased in each of the
4 succeeding 1-year periods by equal increments, so that
for the period beginning October 1, 2006, the applicable
percentage does not exceed 5 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) Certain other apparel articles.--
``(I) General rule.--Any apparel article
classifiable under subheading 6212.10 of the HTS,
except for articles entered under clause (i), (ii),
(iii), or (iv), if the article is both cut and sewn or
otherwise assembled in the United States, or one or
more ATPDEA beneficiary countries, or both.
``(II) Limitation.--During the 1-year period
beginning on October 1, 2003, and during each of the 3
succeeding 1-year periods, apparel articles described
in subclause (I) of a producer or an entity controlling
production shall be eligible for preferential treatment
under this paragraph only if the aggregate cost of
fabrics (exclusive of all findings and trimmings)
formed in the United States that are used in the
production of all such articles of that producer or
entity that are entered and eligible under this clause
during the preceding 1-year period is at least 75
percent of the aggregate declared customs value of the
fabric (exclusive of all findings and trimmings)
contained in all such articles of that producer or
entity that are entered and eligible under this clause
during the preceding 1-year period.
``(III) Development of procedure to ensure
compliance.--The United States Customs Service shall
develop and implement methods and procedures to ensure
ongoing compliance with the requirement set forth in
subclause (II). If the Customs Service finds that a
producer or an entity controlling production has not
satisfied such requirement in a 1-year period, then
apparel articles described in subclause (I) of that
producer or entity shall be ineligible for preferential
treatment under this paragraph during any succeeding 1-
year period until the aggregate cost of fabrics
(exclusive of all findings and trimmings) formed in the
United States that are used in the production of such
articles of that producer or entity entered during the
preceding 1-year period is at least 85 percent of the
aggregate declared customs value of the fabric
(exclusive of all findings and trimmings) contained in
all such articles of that producer or entity that are
entered and eligible under this clause during the
preceding 1-year period.
``(vi) 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
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 yarns is not more than 7 percent of the total
weight of the good.
``(IV) Special origin rule.--An article otherwise
eligible for preferential treatment under clause (i) or
(iii) shall not be ineligible for such treatment
because the article contains nylon filament yarn (other
than elastomeric yarn) that is classifiable under
subheading 5402.10.30, 5402.10.60, 5402.31.30,
5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10,
5402.41.90, 5402.51.00, or 5402.61.00 of the HTS from a
country that is a party to an agreement with the United
States establishing a free trade area, which entered
into force before January 1, 1995.
``(vii) Textile luggage.--Textile luggage--
``(I) assembled in an ATPDEA beneficiary country
from fabric wholly formed and cut in the United States,
from yarns wholly formed in the United States, that is
entered under subheading 9802.00.80 of the HTS; or
``(II) assembled from fabric cut in an ATPDEA
beneficiary country from fabric wholly formed in the
United States from yarns wholly formed in the United
States.
``(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 of the Annex.
``(4) Tuna.--
``(A) General rule.--Tuna that is harvested by United
States vessels or ATPDEA beneficiary country vessels, that is
prepared or preserved in any manner, in an ATPDEA beneficiary
country, in foil or other flexible airtight containers weighing
with their contents not more than 6.8 kilograms each, and that
is 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.
``(B) Definitions.--In this paragraph--
``(i) United states vessel.--A `United States vessel'
is a vessel having a certificate of documentation with a
fishery endorsement under chapter 121 of title 46, United
States Code.
``(ii) ATPDEA vessel.--An `ATPDEA vessel' is a vessel--
``(I) which is registered or recorded in an ATPDEA
beneficiary country;
``(II) which sails under the flag of an ATPDEA
beneficiary country;
``(III) which is at least 75 percent owned by
nationals of an ATPDEA beneficiary country or by a
company having its principal place of business in an
ATPDEA beneficiary country, of which the manager or
managers, chairman of the board of directors or of the
supervisory board, and the majority of the members of
such boards are nationals of an ATPDEA beneficiary
country and of which, in the case of a company, at
least 50 percent of the capital is owned by an ATPDEA
beneficiary country or by public bodies or nationals of
an ATPDEA beneficiary country;
``(IV) of which the master and officers are
nationals of an ATPDEA beneficiary country; and
``(V) of which at least 75 percent of the crew are
nationals of an ATPDEA beneficiary country.
``(5) Customs procedures.--
``(A) In general.--
``(i) Regulations.--Any importer that claims
preferential treatment under paragraph (1), (3), or (4)
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), (3), or (4)
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),
(3), or (4).
``(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), (3), or (4) 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.
``(C) Report on cooperation of atpdea countries concerning
circumvention.--The United States Commissioner of Customs shall
conduct a study analyzing the extent to which each ATPDEA
beneficiary country--
``(i) has cooperated fully with the United States,
consistent with its domestic laws and procedures, in
instances of circumvention or alleged circumvention of
existing quotas on imports of textile and apparel goods, to
establish necessary relevant facts in the places of import,
export, and, where applicable, transshipment, including
investigation of circumvention practices, exchanges of
documents, correspondence, reports, and other relevant
information, to the extent such information is available;
``(ii) has taken appropriate measures, consistent with
its domestic laws and procedures, against exporters and
importers involved in instances of false declaration
concerning quantities, description, classification, or
origin of textile and apparel goods; and
``(iii) has penalized the individuals and entities
involved in any such circumvention, consistent with its
domestic laws and procedures, and has worked closely to
seek the cooperation of any third country to prevent such
circumvention from taking place in that third country.
The Commissioner of Customs shall submit to the Congress, not
later than October 1, 2003, a report on the study conducted
under this subparagraph.
``(6) 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.
``(viii) The extent to which the country has taken
steps to support the efforts of the United States to combat
terrorism.
``(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.
``(F) FTAA.--The term `FTAA' means the Free Trade Area for
the Americas.''.
(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), (3), or (4) 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)(6)(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)--
(i) by inserting ``(or otherwise provided for)'' after
``eligibility''; and
(ii) by inserting ``(or preferential treatment)'' after
``duty-free treatment''; and
(B) in paragraph (2), by striking ``subsection (a)'' and
inserting ``paragraph (1)''.
(d) Petitions for Review.--
(1) In general.--Not later than 180 days after the date of the
enactment of this Act, the President shall promulgate regulations
regarding the review of eligibility of articles and countries under
the Andean Trade Preference Act, consistent with section 203(e) of
such Act, as amended by this title.
(2) Content of regulations.--The regulations shall be similar
to the regulations regarding eligibility under the generalized
system of preferences under title V of the Trade Act of 1974 with
respect to the timetable for reviews and content, and shall include
procedures for requesting withdrawal, suspension, or limitations of
preferential duty treatment under the Andean Trade Preference Act,
conducting reviews of such requests, and implementing the results
of the reviews.
(e) Reporting Requirements.--Section 203(f) of the Andean Trade
Preference Act (19 U.S.C. 3202(f)) is amended to read as follows:
``(f) Reporting Requirements.--
``(1) In general.--Not later than April 30, 2003, and every 2
years thereafter during the period this title is in effect, the
United States Trade Representative shall submit to the Congress a
report regarding the operation of this title, including--
``(A) with respect to subsections (c) and (d), the results
of a general review of beneficiary countries based on the
considerations described in such subsections; and
``(B) the performance of each beneficiary country or ATPEA
beneficiary country, as the case may be, under the criteria set
forth in section 204(b)(6)(B).
``(2) Public comment.--Before submitting the report described
in paragraph (1), the United States Trade Representative shall
publish a notice in the Federal Register requesting public comments
on whether beneficiary countries are meeting the criteria listed in
section 204(b)(6)(B).''.
SEC. 3104. TERMINATION.
(a) In General.--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.''.
(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
(3), the entry--
(A) of any article to which duty-free treatment (or
preferential treatment) under the Andean Trade Preference Act
(19 U.S.C. 3201 et seq.) would have applied if the entry had
been made on December 4, 2001, and
(B) that was made after December 4, 2001, and before the
date of the enactment of this Act,
shall be liquidated or reliquidated as if such duty-free treatment
(or preferential treatment) applied, and the Secretary of the
Treasury shall refund any duty paid with respect to such entry.
(2) Entry.--As used in this subsection, the term ``entry''
includes a withdrawal from warehouse for consumption.
(3) 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. 3105. REPORT ON FREE TRADE AGREEMENT WITH ISRAEL.
(a) Report to Congress.--The United States Trade Representative
shall review the implementation of the United States-Israel Free Trade
Agreement and shall submit to the Speaker of the House of
Representatives, the President of the Senate, the Committee on Ways and
Means of the House of Representatives, and the Committee on Finance of
the Senate a report on the results of such review.
(b) Contents of Report.--The report under subsection (a) shall
include the following:
(1) A review of the terms of the United States-Israel Free
Trade Agreement, particularly the terms with respect to market
access commitments.
(2) A review of subsequent agreements which may have been
reached between the parties to the Agreement and of unilateral
concessions of additional benefits received by each party from the
other.
(3) A review of any current negotiations between the parties to
the Agreement with respect to implementation of the Agreement and
other pertinent matters.
(4) An assessment of the degree of fulfillment of obligations
under the Agreement by the United States and Israel.
(5) An assessment of improvements in structuring future trade
agreements that should be considered based on the experience of the
United States under the Agreement.
(c) Timing of Report.--The United States Trade Representative shall
submit the report under subsection (a) not later than 6 months after
the date of the enactment of this Act.
(d) Definition.--In this section, the terms ``United States-Israel
Free Trade Agreement'' and ``Agreement'' means the Agreement on the
Establishment of a Free Trade Area between the Government of the United
States of America and the Government of Israel entered into on April
22, 1985.
SEC. 3106. MODIFICATION OF DUTY TREATMENT FOR TUNA.
Subheading 1604.14.20 of the Harmonized Tariff Schedule of the
United States is amended--
(1) in the article description, by striking ``20 percent of the
United States pack of canned tuna'' and inserting ``4.8 percent of
apparent United States consumption of tuna in airtight
containers''; and
(2) by redesignating such subheading as subheading 1604.14.22.
SEC. 3107. TRADE BENEFITS UNDER THE CARIBBEAN BASIN ECONOMIC RECOVERY
ACT.
(a) In General.--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 entered on or after September 1, 2002,
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 entered on or after September 1, 2002, 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 entered on or after September 1,
2002, 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 entered on or after September 1, 2002, 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) 500,000,000 square meter equivalents during
the 1-year period beginning on October 1, 2002.
``(bb) 850,000,000 square meter equivalents during
the 1-year period beginning on October 1, 2003.
``(cc) 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) Clause (iv) is amended to read as follows:
``(iv) Certain other apparel articles.--
``(I) General rule.--Subject to subclause (II), any
apparel article classifiable under subheading 6212.10
of the HTS, except for articles entered under clause
(i), (ii), (iii), (v), or (vi), if the article is both
cut and sewn or otherwise assembled in the United
States, or one or more CBTPA beneficiary countries, or
both.
``(II) Limitation.--During the 1-year period
beginning on October 1, 2001, and during each of the 6
succeeding 1-year periods, apparel articles described
in subclause (I) of a producer or an entity controlling
production shall be eligible for preferential treatment
under subparagraph (B) only if the aggregate cost of
fabrics (exclusive of all findings and trimmings)
formed in the United States that are used in the
production of all such articles of that producer or
entity that are entered and eligible under this clause
during the preceding 1-year period is at least 75
percent of the aggregate declared customs value of the
fabric (exclusive of all findings and trimmings)
contained in all such articles of that producer or
entity that are entered and eligible under this clause
during the preceding 1-year period.
``(III) Development of procedure to ensure
compliance.--The United States Customs Service shall
develop and implement methods and procedures to ensure
ongoing compliance with the requirement set forth in
subclause (II). If the Customs Service finds that a
producer or an entity controlling production has not
satisfied such requirement in a 1-year period, then
apparel articles described in subclause (I) of that
producer or entity shall be ineligible for preferential
treatment under subparagraph (B) during any succeeding
1-year period until the aggregate cost of fabrics
(exclusive of all findings and trimmings) formed in the
United States that are used in the production of such
articles of that producer or entity entered during the
preceding 1-year period is at least 85 percent of the
aggregate declared customs value of the fabric
(exclusive of all findings and trimmings) contained in
all such articles of that producer or entity that are
entered and eligible under this clause during the
preceding 1-year period.''.
(6) Clause (vii) is amended by adding at the end the following
new subclause:
``(V) Thread.--An article otherwise eligible for
preferential treatment under this paragraph shall not
be ineligible for such treatment because the thread
used to assemble the article is dyed, printed, or
finished in one or more CBTPA beneficiary countries.''.
(7) 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).
Apparel articles shall qualify under this clause only if
they meet the requirements of clause (i) or (ii) (as the
case may be) with respect to dyeing, printing, and
finishing of knit and woven fabrics from which the articles
are assembled.''.
(b) Effective Date of Certain Provisions.--The amendment made by
subsection (a)(3) shall take effect on October 1, 2002.
SEC. 3108. TRADE BENEFITS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT.
(a) In General.--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 Harmonized
Tariff Schedule of the United States 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 Harmonized Tariff
Schedule of the United States 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 Harmonized
Tariff Schedule of the United States 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:''; and
(B) by amending subparagraph (B) to read as follows:
``(B) Special rule 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
Harmonized Tariff Schedule of the United States).''.
(b) Increase in Limitation on Certain Benefits.--The applicable
percentage under clause (ii) of section 112(b)(3)(A) of the African
Growth and Opportunity Act (19 U.S.C. 3721(b)(3)(A)) shall be
increased--
(1) by 2.17 percent for the 1-year period beginning on October
1, 2002, and
(2) by equal increments in each succeeding 1-year period
provided for in such clause, so that for the 1-year period
beginning October 1, 2007, the applicable percentage is increased
by 3.5 percent,
except that such increase shall not apply with respect to articles
eligible under subparagraph (B) of section 112(b)(3) of that Act.
DIVISION D--EXTENSION OF CERTAIN PREFERENTIAL TRADE TREATMENT
TITLE XLI--EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES
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, 2006''.
(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.
(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.
(3) Definition.--As used in this subsection, the term ``entry''
includes a withdrawal from warehouse for consumption.
SEC. 4102. AMENDMENTS TO GENERALIZED SYSTEM OF PREFERENCES.
(a) Eligibility for Generalized System of Preferences.--Section
502(b)(2)(F) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)(F)) is
amended by striking the period at the end and inserting ``or such
country has not taken steps to support the efforts of the United States
to combat terrorism.''.
(b) Definition of Internationally Recognized Worker Rights.--
Section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4)) is amended
by amending subparagraph (D) to read as follows:
``(D) a minimum age for the employment of children, and a
prohibition on the worst forms of child labor, as defined in
paragraph (6); and''.
DIVISION E--MISCELLANEOUS PROVISIONS
TITLE L--MISCELLANEOUS TRADE BENEFITS
Subtitle A--Wool Provisions
SEC. 5101. WOOL PROVISIONS.
(a) Short Title.--This section may be cited as the ``Wool
Manufacturer Payment Clarification and Technical Corrections Act''.
(b) Clarification of Temporary Duty Suspension.--Heading 9902.51.13
of the Harmonized Tariff Schedule of the United States is amended by
inserting ``average'' before ``diameters''.
(c) Payments to Manufacturers of Certain Wool Products.--
(1) Payments.--Section 505 of the Trade and Development Act of
2000 (Public Law 106-200; 114 Stat. 303) is amended as follows:
(A) Subsection (a) is amended--
(i) by striking ``In each of the calendar years'' and
inserting ``For each of the calendar years''; and
(ii) by striking ``for a refund of duties'' and all
that follows through the end of the subsection and
inserting ``for a payment equal to an amount determined
pursuant to subsection (d)(1).''.
(B) Subsection (b) is amended to read as follows:
``(b) Wool Yarn.--
``(1) Importing manufacturers.--For each of the calendar years
2000, 2001, and 2002, a manufacturer of worsted wool fabrics who
imports wool yarn of the kind described in heading 5107.10 or
9902.51.13 of the Harmonized Tariff Schedule of the United States
shall be eligible for a payment equal to an amount determined
pursuant to subsection (d)(2).
``(2) Nonimporting manufacturers.--For each of the calendar
years 2001 and 2002, any other manufacturer of worsted wool fabrics
of imported wool yarn of the kind described in heading 5107.10 or
9902.51.13 of the Harmonized Tariff Schedule of the United States
shall be eligible for a payment equal to an amount determined
pursuant to subsection (d)(2).''.
(C) Subsection (c) is amended to read as follows:
``(c) Wool Fiber and Wool Top.--
``(1) Importing manufacturers.--For each of the calendar years
2000, 2001, and 2002, a manufacturer of wool yarn or wool fabric
who imports wool fiber or wool top of the kind described in heading
5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10, 5103.20,
5104.00, 5105.21, 5105.29, or 9902.51.14 of the Harmonized Tariff
Schedule of the United States shall be eligible for a payment equal
to an amount determined pursuant to subsection (d)(3).
``(2) Nonimporting manufacturers.--For each of the calendar
years 2001 and 2002, any other manufacturer of wool yarn or wool
fabric of imported wool fiber or wool top of the kind described in
heading 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10,
5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of the Harmonized
Tariff Schedule of the United States shall be eligible for a
payment equal to an amount determined pursuant to subsection
(d)(3).''.
(D) Section 505 is further amended by striking subsection
(d) and inserting the following new subsections:
``(d) Amount of Annual Payments to Manufacturers.--
``(1) Manufacturers of men's suits, etc. of imported worsted
wool fabrics.--
``(A) Eligible to receive more than $5,000.--Each annual
payment to manufacturers described in subsection (a) who,
according to the records of the Customs Service as of September
11, 2001, are eligible to receive more than $5,000 for each of
the calendar years 2000, 2001, and 2002, shall be in an amount
equal to one-third of the amount determined by multiplying
$30,124,000 by a fraction--
``(i) the numerator of which is the amount attributable
to the duties paid on eligible wool products imported in
calendar year 1999 by the manufacturer making the claim,
and
``(ii) the denominator of which is the total amount
attributable to the duties paid on eligible wool products
imported in calendar year 1999 by all the manufacturers
described in subsection (a) who, according to the records
of the Customs Service as of September 11, 2001, are
eligible to receive more than $5,000 for each such calendar
year under this section as it was in effect on that date.
``(B) Eligible wool products.--For purposes of subparagraph
(A), the term `eligible wool products' refers to imported
worsted wool fabrics described in subsection (a).
``(C) Others.--All manufacturers described in subsection
(a), other than the manufacturers to which subparagraph (A)
applies, shall each receive an annual payment in an amount
equal to one-third of the amount determined by dividing
$1,665,000 by the number of all such other manufacturers.
``(2) Manufacturers of worsted wool fabrics of imported wool
yarn.--
``(A) Importing manufacturers.--Each annual payment to an
importing manufacturer described in subsection (b)(1) shall be
in an amount equal to one-third of the amount determined by
multiplying $2,202,000 by a fraction--
``(i) the numerator of which is the amount attributable
to the duties paid on eligible wool products imported in
calendar year 1999 by the importing manufacturer making the
claim, and
``(ii) the denominator of which is the total amount
attributable to the duties paid on eligible wool products
imported in calendar year 1999 by all the importing
manufacturers described in subsection (b)(1).
``(B) Eligible wool products.--For purposes of subparagraph
(A), the term `eligible wool products' refers to imported wool
yarn described in subsection (b)(1).
``(C) Nonimporting manufacturers.--Each annual payment to a
nonimporting manufacturer described in subsection (b)(2) shall
be in an amount equal to one-half of the amount determined by
multiplying $141,000 by a fraction--
``(i) the numerator of which is the amount attributable
to the purchases of imported eligible wool products in
calendar year 1999 by the nonimporting manufacturer making
the claim, and
``(ii) the denominator of which is the total amount
attributable to the purchases of imported eligible wool
products in calendar year 1999 by all the nonimporting
manufacturers described in subsection (b)(2).
``(3) Manufacturers of wool yarn or wool fabric of imported
wool fiber or wool top.--
``(A) Importing manufacturers.--Each annual payment to an
importing manufacturer described in subsection (c)(1) shall be
in an amount equal to one-third of the amount determined by
multiplying $1,522,000 by a fraction--
``(i) the numerator of which is the amount attributable
to the duties paid on eligible wool products imported in
calendar year 1999 by the importing manufacturer making the
claim, and
``(ii) the denominator of which is the total amount
attributable to the duties paid on eligible wool products
imported in calendar year 1999 by all the importing
manufacturers described in subsection (c)(1).
``(B) Eligible wool products.--For purposes of subparagraph
(A), the term `eligible wool products' refers to imported wool
fiber or wool top described in subsection (c)(1).
``(C) Nonimporting manufacturers.--Each annual payment to a
nonimporting manufacturer described in subsection (c)(2) shall
be in an amount equal to one-half of the amount determined by
multiplying $597,000 by a fraction--
``(i) the numerator of which is the amount attributable
to the purchases of imported eligible wool products in
calendar year 1999 by the nonimporting manufacturer making
the claim, and
``(ii) the denominator of which is the amount
attributable to the purchases of imported eligible wool
products in calendar year 1999 by all the nonimporting
manufacturers described in subsection (c)(2).
``(4) Letters of intent.--Except for the nonimporting
manufacturers described in subsections (b)(2) and (c)(2) who may
make claims under this section by virtue of the enactment of the
Wool Manufacturer Payment Clarification and Technical Corrections
Act, only manufacturers who, according to the records of the
Customs Service, filed with the Customs Service before September
11, 2001, letters of intent to establish eligibility to be
claimants are eligible to make a claim for a payment under this
section.
``(5) Amount attributable to purchases by nonimporting
manufacturers.--
``(A) Amount attributable.--For purposes of paragraphs
(2)(C) and (3)(C), the amount attributable to the purchases of
imported eligible wool products in calendar year 1999 by a
nonimporting manufacturer shall be the amount the nonimporting
manufacturer paid for eligible wool products in calendar year
1999, as evidenced by invoices. The nonimporting manufacturer
shall make such calculation and submit the resulting amount to
the Customs Service, within 45 days after the date of enactment
of the Wool Manufacturer Payment Clarification and Technical
Corrections Act, in a signed affidavit that attests that the
information contained therein is true and accurate to the best
of the affiant's belief and knowledge. The nonimporting
manufacturer shall retain the records upon which the
calculation is based for a period of five years beginning on
the date the affidavit is submitted to the Customs Service.
``(B) Eligible wool product.--For purposes of subparagraph
(A)--
``(i) the eligible wool product for nonimporting
manufacturers of worsted wool fabrics is wool yarn of the
kind described in heading 5107.10 or 9902.51.13 of the
Harmonized Tariff Schedule of the United States purchased
in calendar year 1999; and
``(ii) the eligible wool products for nonimporting
manufacturers of wool yarn or wool fabric are wool fiber or
wool top of the kind described in heading 5101.11, 5101.19,
5101.21, 5101.29, 5101.30, 5103.10, 5103.20, 5104.00,
5105.21, 5105.29, or 9902.51.14 of such Schedule purchased
in calendar year 1999.
``(6) Amount attributable to duties paid.--For purposes of
paragraphs (1), (2)(A), and (3)(A), the amount attributable to the
duties paid by a manufacturer shall be the amount shown on the
records of the Customs Service as of September 11, 2001, under this
section as then in effect.
``(7) Schedule of payments; reallocations.--
``(A) Schedule.--Of the payments described in paragraphs
(1), (2)(A), and (3)(A), the Customs Service shall make the
first and second installments on or before the date that is 45
days after the date of enactment of the Wool Manufacturer
Payment Clarification and Technical Corrections Act, and the
third installment on or before April 15, 2003. Of the payments
described in paragraphs (2)(C) and (3)(C), the Customs Service
shall make the first installment on or before the date that is
120 days after the date of enactment of the Wool Manufacturer
Payment Clarification and Technical Corrections Act, and the
second installment on or before April 15, 2003.
``(B) Reallocations.--In the event that a manufacturer that
would have received payment under subparagraph (A) or (C) of
paragraph (1), (2), or (3) ceases to be qualified for such
payment as such a manufacturer, the amounts otherwise payable
to the remaining manufacturers under such subparagraph shall be
increased on a pro rata basis by the amount of the payment such
manufacturer would have received.
``(8) Reference.--For purposes of paragraphs (1)(A) and (6),
the `records of the Customs Service as of September 11, 2001' are
the records of the Wool Duty Unit of the Customs Service on
September 11, 2001, as adjusted by the Customs Service to the
extent necessary to carry out this section. The amounts so adjusted
are not subject to administrative or judicial review.
``(e) Affidavits by Manufacturers.--
``(1) Affidavit required.--A manufacturer may not receive a
payment under this section for calendar year 2000, 2001, or 2002,
as the case may be, unless that manufacturer has submitted to the
Customs Service for that calendar year a signed affidavit that
attests that, during that calendar year, the affiant was a
manufacturer in the United States described in subsection (a), (b),
or (c).
``(2) Timing.--An affidavit under paragraph (1) shall be
valid--
``(A) in the case of a manufacturer described in paragraph
(1), (2)(A), or (3)(A) of subsection (d) filing a claim for a
payment for calendar year 2000 or 2001, or both, only if the
affidavit is postmarked no later than 15 days after the date of
enactment of the Wool Manufacturer Payment Clarification and
Technical Corrections Act; and
``(B) in the case of a claim for a payment for calendar
year 2002, only if the affidavit is postmarked no later than
March 1, 2003.
``(f) Offsets.--Notwithstanding any other provision of this
section, any amount otherwise payable under subsection (d) to a
manufacturer in calendar year 2001 and, where applicable, in calendar
years 2002 and 2003, shall be reduced by the amount of any payment
received by that manufacturer under this section before the enactment
of the Wool Manufacturer Payment Clarification and Technical
Corrections Act.
``(g) Definition.--For purposes of this section, the manufacturer
is the party that owns--
``(1) imported worsted wool fabric, of the kind described in
heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff Schedule
of the United States, at the time the fabric is cut and sewn in the
United States into men's or boys' suits, suit-type jackets, or
trousers;
``(2) imported wool yarn, of the kind described in heading
5107.01 or 9902.51.13 of such Schedule, at the time the yarn is
processed in the United States into worsted wool fabric; or
``(3) imported wool fiber or wool top, of the kind described in
heading 5101.11, 5101.19, 5101.21, 5101.29, 5101.30, 5103.10,
5103.20, 5104.00, 5105.21, 5105.29, or 9902.51.14 of such Schedule,
at the time the wool fiber or wool top is processed in the United
States into wool yarn.''.
(2) Funding.--There is authorized to be appropriated and is
hereby appropriated, out of amounts in the General Fund of the
Treasury not otherwise appropriated, $36,251,000 to carry out the
amendments made by paragraph (1).
SEC. 5102. DUTY SUSPENSION ON WOOL.
(a) Extension of Temporary Duty Reductions.--
(1) Heading 9902.51.11.--Heading 9902.51.11 of the Harmonized
Tariff Schedule of the United States is amended by striking
``2003'' and inserting ``2005''.
(2) Heading 9902.51.12.--Heading 9902.51.12 of the Harmonized
Tariff Schedule of the United States is amended--
(A) by striking ``2003'' and inserting ``2005''; and
(B) by striking ``6%'' and inserting ``Free''.
(3) Heading 9902.51.13.--Heading 9902.51.13 of the Harmonized
Tariff Schedule of the United States is amended by striking
``2003'' and inserting ``2005''.
(4) Heading 9902.51.14.--Heading 9902.51.14 of the Harmonized
Tariff Schedule of the United States is amended by striking
``2003'' and inserting ``2005''.
(b) Limitation on Quantity of Imports.--
(1) Note 15.--U.S. Note 15 to subchapter II of chapter 99 of
the Harmonized Tariff Schedule of the United States is amended--
(A) by striking ``from January 1 to December 31 of each
year, inclusive''; and
(B) by striking ``, or such other'' and inserting the
following: ``in calendar year 2001, 3,500,000 square meter
equivalents in calendar year 2002, and 4,500,000 square meter
equivalents in calendar year 2003 and each calendar year
thereafter, or such greater''.
(2) Note 16.--U.S. Note 16 to subchapter II of chapter 99 of
the Harmonized Tariff Schedule of the United States is amended--
(A) by striking ``from January 1 to December 31 of each
year, inclusive''; and
(B) by striking ``, or such other'' and inserting the
following: ``in calendar year 2001, 2,500,000 square meter
equivalents in calendar year 2002, and 3,500,000 square meter
equivalents in calendar year 2003 and each calendar year
thereafter, or such greater''.
(c) Extension of Duty Refunds and Wool Research Trust Fund.--
(1) In general.--The United States Customs Service shall pay
each manufacturer that receives a payment under section 505 of the
Trade and Development Act of 2000 (Public Law 106-200) for calendar
year 2002, and that provides an affidavit that it remains a
manufacturer in the United States as of January 1 of the year of
the payment, 2 additional payments, each payment equal to the
payment received for calendar year 2002 as follows:
(A) The first payment to be made after January 1, 2004, but
on or before April 15, 2004.
(B) The second payment to be made after January 1, 2005,
but on or before April 15, 2005.
(2) Conforming amendment.--Section 506(f) of the Trade and
Development Act of 2000 (Public Law 106-200) is amended by striking
``2004'' and inserting ``2006''.
(3) Authorization.--There is authorized to be appropriated and
is hereby appropriated out of amounts in the general fund of the
Treasury not otherwise appropriated such sums as are necessary to
carry out the provisions of this subsection.
(d) Effective Date.--The amendment made by subsection (a)(2)(B)
applies to goods entered, or withdrawn from warehouse for consumption,
on or after January 1, 2002.
Subtitle B--Other Provisions
SEC. 5201. 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.
(d) 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. 5202. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS USED IN
NUCLEAR FACILITIES.
(a) In General.--Subheading 9902.84.02 of the Harmonized Tariff
Schedule of the United States is amended--
(1) by striking ``4.9%'' and inserting ``Free''; and
(2) by striking ``12/31/2003'' and inserting ``12/31/2006''.
(b) Effective Date.--
(1) In general.--The amendments made by subsection (a) shall
apply to goods entered, or withdrawn from warehouse for
consumption, on or after January 1, 2002.
(2) Retroactive application.--Notwithstanding section 514 of
the Tariff Act of 1930 or any other provision of law, and subject
to paragraph (4), the entry of any article--
(A) that was made on or after January 1, 2002, and
(B) to which duty-free treatment would have applied if the
amendment made by this section had been in effect on the date
of such entry,
shall be liquidated or reliquidated as if such duty-free treatment
applied, and the Secretary of the Treasury shall refund any duty
paid with respect to such entry.
(3) Entry.--As used in this subsection, the term ``entry''
includes a withdrawal from warehouse for consumption.
(4) Requests.--Liquidation or reliquidation may be made under
paragraph (2) 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. 5203. SUGAR TARIFF-RATE QUOTA CIRCUMVENTION.
(a) In General.--Chapter 17 of the Harmonized Tariff Schedule of
the United States is amended in the superior text to subheading
1702.90.05 by striking ``Containing'' and all that follows through
``solids:'' and inserting the following:
``Containing soluble non-sugar solids (excluding any foreign
substances, including but not limited to molasses, that may have
been added to or developed in the product) equal to 6 percent or
less by weight of the total soluble solids:''.
(b) Monitoring for Circumvention.--The Secretary of Agriculture and
the Commissioner of Customs shall continuously monitor imports of sugar
and sugar-containing products provided for in chapters 17, 18, 19, and
21 of the Harmonized Tariff Schedule of the United States, other than
molasses imported for use in animal feed or the production of rum and
articles prepared for marketing to the ultimate consumer in the form
and package in which imported, for indications that an article is being
used to circumvent a tariff-rate quota provided for in those chapters.
The Secretary and Commissioner shall specifically examine imports of
articles provided for in subheading 1703.10.30 of the Harmonized Tariff
Schedule of the United States.
(c) Reports and Recommendations.--The Secretary and the
Commissioner shall report their findings to Congress and the President
not later than 180 days after the date of enactment of this Act and
every 6 months thereafter. The reports shall include data and a
description of developments and trends in the composition of trade of
articles provided for in the chapters of the Harmonized Tariff Schedule
of the United States identified in subsection (b) and any indications
of circumvention that may exist. The reports shall also include
recommendations for ending such circumvention, including
recommendations for legislation.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.