1.This Act may be cited as the &short-title1;
.
2.The table of contents for this Act is as follows:
Sec. 1. Short title
Sec. 2. Table of contents
Title I—Establishment of Manufacturing and Technology Administration
Sec. 101. Manufacturing and Technology Administration
Sec. 102. Study of abusive practices by large manufacturers and retailers
Sec. 103. Study of feasibility of labeling requirements
Sec. 104. Studies by National Academy of Sciences
Sec. 105. Manufacturing research and implementation; development of new manufacturing technologies
Sec. 106. Advanced Technology Program
Title II—WTO Dispute Settlement Review Commission
Sec. 201. Establishment of Commission
Sec. 202. Duties of the Commission
Sec. 203. Powers of the Commission
Sec. 204. Review of dispute settlement procedures and participation in the WTO
Sec. 205. Participation in WTO panel proceedings
Sec. 206. Definitions
Title III—Reform of Export-Import Bank and Overseas Private Investor Corporation
Sec. 301. Restrictions on Export-Import Bank assistance
Sec. 302. Restrictions on the Overseas Private Investment Corporation
Title IV—Currency Manipulation
Sec. 401. Negotiation period regarding currency manipulation
Sec. 402. Findings of fact and report regarding currency manipulation
Sec. 403. Proceedings regarding currency manipulation
Sec. 404. Additional reports and recommendations
Sec. 405. Currency manipulation defined
Title V—Internal Revenue Code Amendments
Sec. 501. Disincentivization of corporate expatriation to avoid United States income tax
Sec. 502. Inclusion of income from U.S. imports in subpart F income
Sec. 503. Denial of treaty benefits for certain deductible payments
Sec. 504. Repeal of exclusion for extraterritorial income
Sec. 505. Deduction relating to income attributable to United States production activities
Title VI—Buy American Provisions
Sec. 601. Requirements for waivers
Sec. 602. GAO report and recommendations
Sec. 603. Dual use technologies
Title VII—Establishment of Congressional Trade Office
Sec. 701. Findings
Sec. 702. Establishment of office
Sec. 703. Public access to data
Sec. 704. Authorization of appropriations
<enum>I</enum><header>Establishment of Manufacturing and Technology Administration</header>
<section id="HE85B1C44EEEB4113AEE76B7287A59EDE"><enum>101.</enum><header>Manufacturing and Technology Administration</header><text display-inline="no-display-inline">Section 5 of the Stevenson-Wydler Technology Innovation Act of 1980 (<external-xref legal-doc="usc" parsable-cite="usc/15/3704">15 U.S.C. 3704</external-xref>) is amended to read as follows: </text>
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<section id="HB2DC7C223E3C45A9A0962757E18D672B"><enum>5.</enum><header>Manufacturing and Technology</header>
<subsection id="H23FBA51967464E9D9B84E8E50241BCFA"><enum>(a)</enum><header>Establishment</header><text>There is established in the Department of Commerce a Manufacturing and Technology Administration, which shall operate in accordance with the provisions, findings, and purposes of this Act. The Manufacturing and Technology Administration shall include—</text>
<paragraph id="HDE29FBC9E45D4FB1B83874FD93D7B1AE"><enum>(1)</enum><text>the National Institute of Standards and Technology; </text></paragraph>
<paragraph id="HCF1E2AFF3A144C04806F00AE878A41E"><enum>(2)</enum><text>the National Technical Information Service; and </text></paragraph>
<paragraph id="H42E617B3AA70416B90B6B20708A0D204"><enum>(3)</enum><text>a policy analysis office, which shall be known as the Office of Manufacturing and Technology Policy. </text></paragraph></subsection>
<subsection id="H69BAB4FF7BD244EC914027FF482C0098"><enum>(b)</enum><header>Under Secretary and Assistant Secretaries</header><text>The President shall appoint, by and with the advice and consent of the Senate, to the extent provided for in appropriations Acts—</text>
<paragraph id="HA016D853C6CD439F9C651CAFF6604121"><enum>(1)</enum><text>an Under Secretary of Commerce for Manufacturing and Technology, who shall be compensated at the rate provided for level III of the Executive Schedule in <external-xref legal-doc="usc" parsable-cite="usc/5/5314">section 5314</external-xref> of title 5, United States Code; </text></paragraph>
<paragraph id="H9458142B41774E288886C4424FD74F2F"><enum>(2)</enum><text>an Assistant Secretary of Manufacturing who shall serve as a policy analyst for the Under Secretary; and </text></paragraph>
<paragraph id="H43464E6DD0EA4B7DABDAB090E98C25B6"><enum>(3)</enum><text>an Assistant Secretary of Technology who shall serve as a policy analyst for the Under Secretary. </text></paragraph></subsection>
<subsection id="HCB4BA56ABEFC440AA589A1841E00268F"><enum>(c)</enum><header>Duties</header><text>The Secretary, through the Under Secretary, as appropriate, shall—</text>
<paragraph id="H20D9F3077C8446D6BC8418F67D42906"><enum>(1)</enum><text>manage the Manufacturing and Technology Administration and supervise its agencies, programs, and activities; </text></paragraph>
<paragraph id="H66F4A3162B134AC8A2D0C8FFD566684"><enum>(2)</enum><text>conduct manufacturing and technology policy analyses to improve United States industrial productivity, manufacturing capabilities, and innovation, and cooperate with United States industry to improve its productivity, manufacturing capabilities, and ability to compete successfully in an international marketplace; </text></paragraph>
<paragraph id="H359C852179F84A7B92BBB8D385AEC81C"><enum>(3)</enum><text>identify manufacturing and technological needs, problems, and opportunities within and across industrial sectors, that, if addressed, could make significant contributions to the economy of the United States; </text></paragraph>
<paragraph id="HE17885CDAF0A481B9F969EE27652CBB3"><enum>(4)</enum><text>assess whether the capital, technical, and other resources being allocated to domestic industrial sectors which are likely to generate new technologies are adequate to meet private and social demands for goods and services and to promote productivity and economic growth; </text></paragraph>
<paragraph id="H29F41ECA0B5D48BFB592CAB051B4E466"><enum>(5)</enum><text>propose and support studies and policy experiments, in cooperation with other Federal agencies, to determine the effectiveness of measures for improving United States manufacturing capabilities and productivity; </text></paragraph>
<paragraph id="H8CDE745D100448C4A2C5775657EEAAD9"><enum>(6)</enum><text>provide that cooperative efforts to stimulate industrial competitiveness and innovation be undertaken between the Under Secretary and other officials in the Department of Commerce responsible for such areas as trade and economic assistance; </text></paragraph>
<paragraph id="H0E0C1925FBCD46EFBA11005913D09810"><enum>(7)</enum><text>encourage and assist the creation of centers and other joint initiatives by State or local governments, regional organizations, private businesses, institutions of higher education, nonprofit organizations, or Federal laboratories to encourage technology transfer, to encourage innovation, and to promote an appropriate climate for investment in technology-related industries; </text></paragraph>
<paragraph id="HEAF60001A3A74DED8F5F4CEFE98907C"><enum>(8)</enum><text>propose and encourage cooperative research involving appropriate Federal entities, State or local governments, regional organizations, colleges or universities, nonprofit organizations, or private industry to promote the common use of resources, to improve training programs and curricula, to stimulate interest in manufacturing and technology careers, and to encourage the effective dissemination of manufacturing and technology skills within the wider community; </text></paragraph>
<paragraph id="HDE4C1877D4E64BA78978DA2045C33CB3"><enum>(9)</enum><text>serve as a focal point for discussions among United States companies on topics of interest to industry and labor, including discussions regarding manufacturing, competitiveness, and emerging technologies; </text></paragraph>
<paragraph id="H9095FEA649B14E96A9BFA702C4103039"><enum>(10)</enum><text>consider government measures with the potential of advancing United States technological innovation and exploiting innovations of foreign origin and publish the results of studies and policy experiments; and </text></paragraph>
<paragraph id="HD15E2A3C931D4EFEBC874185B23C17F0"><enum>(11)</enum><text>assist in the implementation of the Metric Conversion Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/15/205a">15 U.S.C. 205a et seq.</external-xref>). </text></paragraph></subsection>
<subsection id="H581D256959554FAB88465C002283F00"><enum>(d)</enum><header>Manufacturing Advisory Board</header><text></text>
<paragraph id="HC3F92AFA33DA424DBE5D186042E0F896"><enum>(1)</enum><header>Establishment and Composition</header><text>There is established a Manufacturing Advisory Board within the Manufacturing and Technology Administration. The Under Secretary or the Assistant Secretary of Manufacturing shall chair the Advisory Board. The Advisory Board shall be composed of 14 additional members appointed by the Under Secretary as follows: </text>
<subparagraph id="HFD28C0D6DC6B410B96E911CD5878D093"><enum>(A)</enum><text>1 representative each from the National Association of Manufacturers, the National Coalition for Advanced Manufacturing, and the Modernization Forum. </text></subparagraph>
<subparagraph id="H0AAD59CB2A81489FB3B8069CC0905B9"><enum>(B)</enum><text>4 members from outside the Federal Government who are eminent in the manufacturing industry, at least 2 of whom are representatives of small and medium-sized companies in such industries.</text></subparagraph>
<subparagraph id="H2BA0B6A30F2E44C2A001EE02768260FB"><enum>(C)</enum><text>4 members from Federal agencies who have manufacturing science and technology expertise, at least 1 of whom shall be from the National Institute of Standards and Technology. </text></subparagraph>
<subparagraph id="HE9409F4D3F18486DB000D25E7A0691E"><enum>(D)</enum><text>3 members from labor unions, a majority of whose members have manufacturing jobs. </text></subparagraph></paragraph>
<paragraph id="H4883EE7F7C8E4EA9B67EA8417809F68C"><enum>(2)</enum><header>Duties</header><text>The duties of the Advisory Board shall be—</text>
<subparagraph id="H1184400411CD4BEDA3ED17786D5095"><enum>(A)</enum><text>to identify manufacturing issues relative to manufacturing technology and competitiveness; </text></subparagraph>
<subparagraph id="H7308DF03D36E454A88B784255C78474B"><enum>(B)</enum><text>to advise the Under Secretary on manufacturing issues, including manufacturing activities at the National Institute of Standards and Technology, and make recommendations for actions by the Federal Government; and </text></subparagraph>
<subparagraph id="H9FC135CBF9044CB4A0E27465907EC680"><enum>(C)</enum><text>to report its finding and recommendations to the Under Secretary and the Director of the Office of Management and Budget. </text></subparagraph></paragraph>
<paragraph id="H80B97B11D3264732A8A686CB58F365CF"><enum>(3)</enum><header>Terms of office</header><text>The term of office of each member of the Advisory Board shall be 4 years, except that—</text>
<subparagraph id="H7323BF5F23914696AA6348E6CAD48772"><enum>(A)</enum><text>of the initial members, 3 shall be appointed for terms of 1 year, 3 shall be appointed for terms of 2 years, 4 shall be appointed for terms of 3 years, and 4 shall be appointed for terms of 4 years; and </text></subparagraph>
<subparagraph id="HD7F2F0CDC2C9441FA72363C6333316E1"><enum>(B)</enum><text>any member appointed to fill a vacancy in the Advisory Board shall serve for the remainder of the term for which his predecessor was appointed. </text></subparagraph></paragraph>
<paragraph id="H99312AF4FAD7466695EF20813E875BA5"><enum>(4)</enum><header>Quorum</header><text>The Advisory Board shall not act in the absence of a quorum, which shall consist of 8 members. </text></paragraph>
<paragraph id="HE54ED14473A249F800E39271D1132D3B"><enum>(5)</enum><header>Allowance for travel expenses</header><text>Members of the Advisory Board, other than full-time employees of the Federal Government, while attending meetings of the Board or while otherwise performing duties at the request of the Chairman while away from their home or a regular place of business, may be allowed travel expenses in accordance with subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code. </text></paragraph>
<paragraph id="H429FC61805204917AAA78B4197D9C238"><enum>(6)</enum><header>Staff services and utilization of Federal personnel</header><text>To provide the staff services necessary to assist the Advisory Board in carrying out its functions, the Advisory Board may utilize personnel from the National Institute of Standards and Technology or any other agency of the Federal Government with the consent of the head of the agency. </text></paragraph></subsection>
<subsection id="HDD2074DD247748809E3892CC36B5F89E"><enum>(e)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated to the Secretary for the activities of the Under Secretary—</text>
<paragraph id="H0DB08B83826A4A3AB2C50013E5339E3C"><enum>(1)</enum><text>$2,000,000 for fiscal year 2004; </text></paragraph>
<paragraph id="H395610320F434CEE91C199BA33A2576D"><enum>(2)</enum><text>$2,070,000 for fiscal year 2005; </text></paragraph>
<paragraph id="HAAD0A8E42F9B48779BB42864A346F276"><enum>(3)</enum><text>$2,140,000 for fiscal year 2006; and </text></paragraph>
<paragraph id="H86937F3418764ABA91062FD1745802BD"><enum>(4)</enum><text>$2,220,000 for fiscal year 2007.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H3F58287AED974A849D18782138DF9899"><enum>102.</enum><header>Study of abusive practices by large manufacturers and retailers</header>
<subsection id="H53AB460F86C14E9EB0074D92E97EB5EA"><enum>(a)</enum><header>Study</header><text>The Under Secretary of Commerce for Manufacturing and Technology (appointed pursuant to section 101 of this title) shall conduct a study of practices by large manufacturers and retailers whereby such manufacturers and retailers place large contract orders and later cancel such orders after only a portion of the goods or services are provided, and the impact that such practices have on small businesses.</text></subsection>
<subsection id="HD2EAE884DBEC491C85B474672D227F62"><enum>(b)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this title, the Under Secretary of Commerce for Manufacturing and Technology shall transmit a report to the Congress on the findings of the study required by subsection (a). The report shall propose guidelines to address abusive practices and recommendations for a means to allow small manufacturers to confidentially report such practices.</text></subsection></section>
<section id="HF40A3C003DDE4B3A9D53307FCE003D3C"><enum>103.</enum><header>Study of feasibility of labeling requirements</header>
<subsection id="H2CD998DC0DD947EDA68272DCAB0C1DA"><enum>(a)</enum><header>Study</header><text>The Under Secretary of Commerce for Manufacturing and Technology (appointed pursuant to section 101 of this title) shall conduct a study of the feasibility and impact of laws or regulations requiring all products retailing at more than $15 to state clearly on the labels the percentage of components made in the United States.</text></subsection>
<subsection id="HD5D335D3337C42FC899D336500B5F43D"><enum>(b)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this title, the Under Secretary of Commerce for Manufacturing and Technology shall transmit a report to the Congress on the findings of the study required by subsection (a). The report shall examine the cost of such a labeling requirement to manufacturers and consumers, shall include recommendations for any necessary legislation, and shall propose a timetable for implementation of such requirements.</text></subsection></section>
<section id="H73D3B9F8D4C7453E9B235853A8AB91C5"><enum>104.</enum><header>Studies by National Academy of Sciences</header><text display-inline="no-display-inline">Section 24 of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278j">15 U.S.C. 278j</external-xref>) is amended—</text>
<paragraph id="HD785BF89A1854946BB00634000E97BE1"><enum>(1)</enum><text>by striking <quote>The Director may</quote> through <quote>assist the</quote> and inserting <quote>The Under Secretary of Commerce for Manufacturing and Technology and the Director may periodically enter into an arrangement with the National Academy of Sciences for advice and studies to assist the Manufacturing and Technology Administration and the</quote>; and </text></paragraph>
<paragraph id="HE4764AA5A7E24966A25BE2AEACA6338C"><enum>(2)</enum><text>in paragraph (2) by inserting <quote>the Manufacturing and Technology Administration and</quote> after <quote>potential activities of</quote>. </text></paragraph></section>
<section id="H6EB6F7955DB14468861F1CD4DC5B05F8"><enum>105.</enum><header>Manufacturing research and implementation; development of new manufacturing technologies</header>
<subsection id="H19158049A38749A3A637A0CBD768CE95"><enum>(a)</enum><header>National Institutes of Standards and Technology laboratory activities</header><text>There are authorized to be appropriated to the Secretary of Commerce for Manufacturing Engineering activities at the Scientific and Technical Research and Services Laboratory of the National Institute of Standards and Technology—</text>
<paragraph id="H5CC0D95C737F4A45896BB5AD35005200"><enum>(1)</enum><text>$60,000,000 for fiscal year 2004, of which $30,000,000 shall be for the research and development program on manufacturing under section 33 of the National Institute of Standards and Technology Act; </text></paragraph>
<paragraph id="HDBB966189D1A476D929BCAB841AF4E1C"><enum>(2)</enum><text>$62,100,000 for fiscal year 2005, of which $31,050,000 shall be for the research and development program on manufacturing under section 33 of the National Institute of Standards and Technology Act; </text></paragraph>
<paragraph id="H527F3BB626074505A6E542359E8552FB"><enum>(3)</enum><text>$64,270,000 for fiscal year 2006, of which $32,140,000 shall be for the research and development program on manufacturing under section 33 of the National Institute of Standards and Technology Act; and</text></paragraph>
<paragraph id="H78FE16C7A2944396AB669D9BA355C339"><enum>(4)</enum><text>$68,850,000 for fiscal year 2007, of which $33,260,000 shall be for the research and development program on manufacturing under section 33 of the National Institute of Standards and Technology Act. </text></paragraph></subsection>
<subsection id="HAFF4A415931842D800C1DB626801A102"><enum>(b)</enum><header>National Institutes of Standards and Technology Research and Development program</header><text>The National Institute of Standards and Technology Act is amended—</text>
<paragraph id="H64D4BB8456FB4797944FE5E7CAA722C8"><enum>(1)</enum><text>by redesignating the first section 32 as section 34 and moving it to the end of the Act; and </text></paragraph>
<paragraph id="H7879271459D145E58735AE00FC54A277"><enum>(2)</enum><text>by inserting before the section moved by paragraph (1) the following new section: </text>
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<section id="H70F81FB467FE413589582E61BB1B81BD"><enum>33.</enum><header>Research and development program on manufacturing</header>
<subsection id="H7EBFB54726604CBC97E722AC190042D0"><enum>(a)</enum><header>Establishment</header><text>The Director shall establish a program of assistance to institutions of higher education or nonprofit research institutions that enter into partnerships with for-profit entities to support, promote, and enhance manufacturing research and development. The program shall—</text>
<paragraph id="H930072242F8B4B56948DE7F8DEF0B300"><enum>(1)</enum><text>include multidisciplinary research; and</text></paragraph>
<paragraph id="H250D3508213B4F939EC7D0861CE4C686"><enum>(2)</enum><text>include research directed toward addressing the needs identified through the Under Secretary of Commerce for Manufacturing and Technology, the Office of Manufacturing and Technology Policy, and the Manufacturing Advisory Board. </text></paragraph></subsection>
<subsection id="HA4A8B39DC04D46999D9170CA8825B02D"><enum>(b)</enum><header>Fellowships</header><text>In order to promote the development of a robust research community working at the leading edge of manufacturing sciences, the Director shall establish a program to award—</text>
<paragraph id="HAC2310BED9394D239296EC865EB2E48F"><enum>(1)</enum><text>postdoctoral research fellowships to individuals who are seeking research positions at institutions, including the Institute, engaged in research activities related to manufacturing sciences; and </text></paragraph>
<paragraph id="H96C27BD07F75438FA0394C7CC2EFFFB7"><enum>(2)</enum><text>senior research fellowships to individuals seeking research positions at institutions, including the Institute, engaged in research activities related to manufacturing sciences. To be eligible for an award under this subsection, an individual shall submit an application to the Director at such time, in such manner, and containing such information as the Director may require. Under this subsection, the Director shall provide stipends for postdoctoral research fellowships at a level consistent with the Institute's Post Doctoral Research Fellowship Program, and senior research fellowships at levels consistent with support for a faculty member in a sabbatical position. </text></paragraph></subsection>
<subsection id="H6881032C2B2844B88E8CECBB951C54E6"><enum>(c)</enum><header>Awards, applications</header><text>The Director is authorized to award grants or cooperative agreements to institutions of higher education to carry out the program established under subsection (a). To be eligible for an award under such subsection, an institution shall submit an application to the Director at such time, in such manner, and containing such information as the Director may require. The application shall include, at minimum, a description of how the for-profit entities and any other partners will participate in developing and carrying out the research agenda of the partnership. </text></subsection>
<subsection id="H1FA202E975454D67B05B258FB443D820"><enum>(d)</enum><header>Program operation</header><text></text>
<paragraph id="H12B7E675DF2E4D40A998523051B460CC" display-inline="yes-display-inline"><enum>(1)</enum><text>The program established under subsection (a) shall be managed by individuals who have expertise in research related to manufacturing technology. The Director shall designate such individuals program managers. </text></paragraph>
<paragraph id="H805B9DD97CDA42E6ABAFD9E2C42958B3" indent="up1"><enum>(2)</enum><text>Program managers designated under paragraph (1) may be new or existing employees of the Institute or individuals on assignment at the Institute under the Intergovernmental Personnel Act of 1970. </text></paragraph>
<paragraph id="HFB4B4E89301B48E5A44EEBC4E92989C1" indent="up1"><enum>(3)</enum><text>Program managers designated under paragraph (1) shall be responsible for—</text>
<subparagraph id="H3D84877B104A4D8BAE2CACE2CE000311"><enum>(A)</enum><text>establishing and publicizing the broad research and development goals for the program; </text></subparagraph>
<subparagraph id="H05629C314C4E4C22A68F5439242DB9F8"><enum>(B)</enum><text>soliciting applications for specific research projects to address the goals developed under subparagraph (A); and </text></subparagraph>
<subparagraph id="H2E9F4720711F48AFACC13C3F838E5E00"><enum>(C)</enum><text>selecting research projects for support under the program from among applications submitted to the Institute, following consideration of—</text>
<clause id="H9D49057B94B049B8A6D4656F7E00064B"><enum>(i)</enum><text>the novelty and scientific and technical merit of the proposed projects;</text></clause>
<clause id="H2A8C565262924EF18E59B1D0E8E247D3"><enum>(ii)</enum><text>the demonstrated capabilities of the individual or individuals submitting the applications to successfully carry out the proposed research; </text></clause>
<clause id="H92EC56B60A664C65B0C0489B619DB3FC"><enum>(iii)</enum><text>the impact the proposed projects will have on increasing the number of individuals with research expertise in manufacturing sciences; and </text></clause>
<clause id="HC1B331D01309489FBB4F9F553D245E6B"><enum>(iv)</enum><text>the nature of the participation by for-profit entities and the extent to which the proposed projects address the concerns of industry.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H13CE3532C7EB4CF69F15C3187587F812"><enum>(e)</enum><header>Review of program</header><text>The Director shall enter into an arrangement with the National Academy of Sciences for a comprehensive review of the program established under subsection (a) during the third year of the program. Such review shall include an assessment of the quality and utility of the research conducted and the relevance of the research results obtained to the goals of the program. The Director shall submit a report to Congress on the results of the review under this subsection not later than 4 years after the initiation of the program. </text></subsection>
<subsection id="H0654E533F5134223B4965569AF35B666"><enum>(f)</enum><header>Definition</header><text>For the purposes of this section the term <term>institution of higher education</term> has the meaning given that term in section 101 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001</external-xref>).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section>
<section id="HB85D93CBFFDA40E7A164E22A556D2F6"><enum>106.</enum><header>Advanced Technology Program</header>
<subsection id="H6D9A314BAEDC47E7B01EBCC4220050A6"><enum>(a)</enum><header>Authorization of Appropriations</header><text>There are authorized to be appropriated to the Secretary of Commerce for the Advanced Technology Program under section 28 of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278n">15 U.S.C. 278n</external-xref>)—</text>
<paragraph id="H0CC205920AE8426FBB16A30097572201"><enum>(1)</enum><text>$219,400,000 for fiscal year 2004, including $80,700,000 for new awards, of which $20,000,000 shall be for a focused competition in manufacturing sciences; </text></paragraph>
<paragraph id="H2DFD7273E66745CF9DFB611C1181A44F"><enum>(2)</enum><text>$262,900,000 for fiscal year 2005, including $80,700,000 for new awards, of which $20,000,000 shall be for a focused competition in manufacturing sciences;</text></paragraph>
<paragraph id="H8A12AAFC83E349C700FEFDDB7EE662C"><enum>(3)</enum><text>$280,900,000 for fiscal year 2006, including $80,700,000 for new awards, of which $20,000,000 shall be for a focused competition in manufacturing sciences; and </text></paragraph>
<paragraph id="HCEBD1069668140348E52B9E5001E37F9"><enum>(4)</enum><text>$290,400,000 for fiscal year 2, including $80,700,000 for new awards, of which $20,000,000 shall be for a focused competition in manufacturing sciences. </text></paragraph></subsection>
<subsection id="HE834D5FB79AF4D498D61E0A86E62E72B"><enum>(b)</enum><header>University leadership of joint ventures</header>
<paragraph id="H77D1AF602C6C461B9BC2FDD3CFE0C5DD"><enum>(1)</enum><header>Joint venture aid</header><text>Section 28(b)(1) of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278n">15 U.S.C. 278n(b)(1)</external-xref>) is amended by striking <quote>industry-led United States</quote> and all that follows through <quote>organizations)</quote> and inserting <quote>joint ventures</quote>. </text></paragraph>
<paragraph id="H42CA85F0D66C437797B255B4B9BCAAC4"><enum>(2)</enum><header>Definition</header><text>Section 28(j)(1) of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278n">15 U.S.C. 278n(j)(1)</external-xref>) is amended by striking <quote>two or more persons</quote> and inserting <quote>a combination of two or more persons (which shall include at least two companies, each of which participates substantially in the joint venture, and may include one or more institutions of higher education or nonprofit organizations)</quote>. </text></paragraph></subsection>
<subsection id="H9648BE212DDA4F7082FC27B799BA04F4"><enum>(c)</enum><header>Intellectual property rights ownership</header><text>Section 28(d)(11) of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278n">15 U.S.C. 278n(d)(11)</external-xref>) is amended by striking <quote>(11)(A)</quote> and all that follows through <quote>with such intellectual property.</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H1A698C6A64C8436EA9BC798F90BCA200" display-inline="no-display-inline">
<paragraph id="H3121C1814473466EBFD38707AF6FCE20"><enum>(11)</enum>
<subparagraph id="HAE88335C211F4719AC6732F94C1B4D4D" display-inline="yes-display-inline"><enum>(A)</enum><text>Title to any intellectual property developed by a joint venture from assistance provided under this section may vest in any participant in the joint venture, as agreed by the members of the joint venture, notwithstanding section 202(a) and (b) of title 35, United States Code. The United States may reserve a nonexclusive, nontransferable, irrevocable, paid-up license, to have practiced for or on behalf of the United States in connection with any such intellectual property, but shall not, in the exercise of such license, publicly disclose proprietary information related to the license. Title to any such intellectual property shall not be transferred or passed, except to a participant in the joint venture, until the expiration of the first patent obtained in connection with such intellectual property.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H0CB65243874C43858B1EB8521F243300"><enum>(d)</enum><header>Barriers to product development</header><text>Section 28(d) of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278n">15 U.S.C. 278n(d)</external-xref>) is amended by adding at the end the following new paragraph: </text>
<quoted-block style="OLC" id="HE191580FBFA5442BB242CD7823AE8126" display-inline="no-display-inline">
<paragraph id="HC31CFAFF41234F60ACE29631B7604914"><enum>(12)</enum><text>No contract or award may be made under this section for any project unless the project may remove a scientific or technological barrier to product development.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HBF9D0567550F491EA82F6658655DCB3D"><enum>(e)</enum><header>Project review and evaluation</header><text>Section 28(g) of the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278n">15 U.S.C. 278n(g)</external-xref>) is amended to read as follows: </text>
<quoted-block style="OLC" id="H2F0D716D458D4F9CB4272BEFA6FCAE18" display-inline="no-display-inline">
<subsection id="H4F76E44944854A4F823CF100FCCAEB35"><enum>(g)</enum><header>Industry and peer review of proposals</header>
<paragraph id="H67E7264CD3804075A9F25F8C2055EEEF" display-inline="yes-display-inline"><enum>(1)</enum><text>In order to analyze the need for or the value of any proposal made by a joint venture or company requesting the Secretary's assistance under this section, or to monitor the progress of any project which receives funds under this section, the Secretary, the Under Secretary of Commerce for Manufacturing and Technology, and the Director may, notwithstanding any other provision of law, meet with such industry and other expert sources, without a proprietary or financial interest in proposals being evaluated, as they consider useful and appropriate.</text></paragraph>
<paragraph id="HC4355653629743B80044354FB8DC9294" indent="up1"><enum>(2)</enum><text>In order to better assess whether specific innovations to be pursued are being adequately supported by the private sector, the Director shall conduct a study of, and thereafter monitor, whether the Secretary, the Undersecretary of Commerce for Manufacturing and Technology, and the Director could benefit from advice and information from additional industry and other expert sources, without a proprietary or financial interest in proposals being evaluated. Not later than one year after the date of the enactment of this Act, and biennially thereafter, the Director shall transmit to the Congress a report containing the results of the study and monitoring under this paragraph.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<enum>II</enum><header>WTO Dispute Settlement Review Commission</header>
<section id="HEE0F10E5405C0C8DF1242888FBBDE89"><enum>201.</enum><header>Establishment of Commission</header>
<subsection id="H251C6F9DDD1244B3AE709EAA50FF0144"><enum>(a)</enum><header>Establishment</header><text>There is established a commission to be known as the WTO Dispute Settlement Review Commission (in this title referred to as the <quote>Commission</quote>).</text></subsection>
<subsection id="H4F48BB8526C44CE0AF1400383F991C94"><enum>(b)</enum><header>Membership</header>
<paragraph id="HF2FF358C41305A442EE50BBFE03007F"><enum>(1)</enum><header>Composition</header><text>The Commission shall be composed of 5 members, all of whom shall be judges of the Federal judicial circuits and shall be appointed by the President, after consultation with the Majority Leader and Minority Leader of the House of Representatives, and the Majority Leader and Minority Leader of the Senate.</text></paragraph>
<paragraph id="H3AF05D824DE0E4D374043098D3970FE"><enum>(2)</enum><header>Date</header><text>The appointments of the members of the Commission shall be made no later than 60 days after the date of the enactment of this Act.</text></paragraph>
<paragraph id="H826ACD764B55CD9F80D2B9889EBA476"><enum>(3)</enum><header>In general</header><text>Members of the Commission first appointed shall each be appointed for a term of 5 years. After the initial 5-year term, 3 members of the Commission shall be appointed for terms of 3 years and the remaining 2 members shall be appointed for terms of 2 years.</text></paragraph>
<paragraph id="HBD58126C4253EE3B7602309D3FFB244"><enum>(4)</enum><header>Vacancies</header>
<subparagraph id="H7DF0374F43BB717FDFB0F3AD6DFFA8F"><enum>(A)</enum><header>In general</header><text>Any vacancy on the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment and shall be subject to the same conditions as the original appointment.</text></subparagraph>
<subparagraph id="HCE7C364F48F6FE39FA48D2B1A9523A5"><enum>(B)</enum><header>Unexpired term</header><text>An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced.</text></subparagraph></paragraph></subsection></section>
<section id="HC4CADF164B29BD35EE3D4FB35C1700C"><enum>202.</enum><header>Duties of the Commission</header>
<subsection id="H23453A7D76674240A00068621C244361"><enum>(a)</enum><header>Review of WTO Dispute Settlement reports</header>
<paragraph id="H490925EA476E49EAF4F099B3A6671DF"><enum>(1)</enum><header>In general</header><text>The Commission shall review—</text>
<subparagraph id="H5FF46B464043F2389CD63F818FF00E6"><enum>(A)</enum><text>all reports of dispute settlement panels or the Appellate Body of the World Trade Organization in proceedings initiated by other parties to the WTO which are adverse to the United States and which are adopted by the Dispute Settlement Body, and</text></subparagraph>
<subparagraph id="H941A8A564A726A2DD5DEE8AFC543D00"><enum>(B)</enum><text>upon request of the United States Trade Representative, any other report of a dispute settlement panel or the Appellate Body which is adopted by the Dispute Settlement Body.</text></subparagraph></paragraph>
<paragraph id="H5E9FCA4041C0311D54952895FDB4F16"><enum>(2)</enum><header>Scope of review</header><text>In the case of reports described in paragraph (1), the Commission shall review the report and determine whether—</text>
<subparagraph id="H8120205B4F0F94E059B856AA9D0200D"><enum>(A)</enum><text>the panel or the Appellate Body, as the case may be, exceeded its authority or its terms of reference;</text></subparagraph>
<subparagraph id="H8B362F484FEFF3329B1C18BA66E38CE"><enum>(B)</enum><text>the panel or the Appellate Body, as the case may be, added to the obligations of or diminished the rights of the United States under the Uruguay Round agreement which is the subject of report;</text></subparagraph>
<subparagraph id="HC18910DF498035E908E25687DAA87C1"><enum>(C)</enum><text>the panel or the Appellate Body, as the case may be, acted arbitrarily or capriciously, engaged in misconduct, or demonstrably departed from the procedures specified for panels and Appellate Bodies in the applicable Uruguay Round Agreement; and</text></subparagraph>
<subparagraph id="HBD553BB948A535739F54E18067E0B78"><enum>(D)</enum><text>the report of the panel or the Appellate Body, as the case may be, deviated from the applicable standard of review, including, in antidumping, countervailing duty, and other unfair trade remedy cases, the standard of review set forth in Article 17.6 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994.</text></subparagraph></paragraph>
<paragraph id="HD69FC90045DB387F40E201A37C7B01A"><enum>(3)</enum><header>Affirmative determination</header><text>If the Commission makes an affirmative determination with respect to the action of a panel or an Appellate Body under subparagraph (A), (B), (C), or (D) of paragraph (2), the Commission shall determine whether the action of the panel or Appellate Body materially affected the outcome of the report of the panel or Appellate Body.</text></paragraph></subsection>
<subsection id="H9D2FAE404C070AC61B52C3AD4565A12"><enum>(b)</enum><header>Determination; report</header>
<paragraph id="HCE6751C747E8072271F8C2BD2BD1F90"><enum>(1)</enum><header>Determination</header><text>No later than 120 days after the date on which a report of a panel or Appellate Body described in subsection (a)(1) is adopted by the Dispute Settlement Body, the Commission shall make a written determination with respect to matters described in subsections (a)(2) and (a)(3).</text></paragraph>
<paragraph id="HE853961E4E7B15F76F8DCB896C49F2E"><enum>(2)</enum><header>Reports</header><text>The Commission shall report the determinations described in paragraph (1) to the Congress. </text></paragraph></subsection></section>
<section id="H701D87334FC918D708E193B27FBAC40"><enum>203.</enum><header>Powers of the Commission</header>
<subsection id="H8C2F44DD4C47FF545BA3BBA27C1FC48"><enum>(a)</enum><header>Hearings</header><text>The Commission may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the Commission considers advisable to carry out the purposes of this title.</text></subsection>
<subsection id="H39C263EF4F4523873325C39E4DB3336"><enum>(b)</enum><header>Information from interested parties and Federal agencies</header>
<paragraph id="HCC410FB2437E72F0790C0487F8C942E"><enum>(1)</enum><header>Notice of panel or Appellate Body report</header><text>The United States Trade Representative shall advise the Commission no later than 5 days after the date the Dispute Settlement Body adopts the report of a panel or Appellate Body that is adverse to the United States and shall immediately publish notice of such advice in the Federal Register, along with notice of an opportunity for interested parties to submit comments to the Commission.</text></paragraph>
<paragraph id="H4E4C507D4CAE51FA180E63BCEFC510C"><enum>(2)</enum><header>Submissions and requests for information</header><text>Any interested party may submit comments to the Commission regarding the panel or Appellate Body report. The Commission may also secure directly from any Federal department or agency such information as the Commission considers necessary to carry out the provisions of this title. Upon request of the Chairman of the Commission, the head of such department or agency shall furnish such information to the Commission.</text></paragraph>
<paragraph id="H4CBECA18432086C99975CE80E87FCAA"><enum>(3)</enum><header>Access to panel and Appellate Body documents</header><text>The United States Trade Representative shall make available to the Commission all submissions and relevant documents relating to the panel or Appellate Body report, including any information contained in such submissions that is identified by the provider of the information as proprietary information or information treated as confidential by a foreign government.</text></paragraph></subsection></section>
<section id="H685CFA80449B3BF247DD8A8EF7D9181"><enum>204.</enum><header>Review of dispute settlement procedures and participation in the WTO</header>
<subsection id="H55DC6989434C7D7759ACB78F73F6F25"><enum>(a)</enum><header>Affirmative report by Commission</header>
<paragraph id="H81FB0A1442D5E4A134961BA4B667C72"><enum>(1)</enum><header>In general</header><text>If a joint resolution described in subsection (b)(1) is enacted into law pursuant to the provisions of subsection (c), the President shall undertake negotiations to amend or modify the rules and procedures of the Understanding on Rules and Procedures Governing the Settlement of Disputes to which such joint resolution relates.</text></paragraph>
<paragraph id="HDA8432CC4B9F6ACB35AA9487D605C5F"><enum>(2)</enum><header>3 affirmative reports by Commission</header><text>If a joint resolution described in subsection (b)(2) is enacted into law pursuant to the provisions of subsection (c), the approval of the Congress, provided under section 101(a) of the Uruguay Round Agreements Act, of the WTO Agreement shall cease to be effective in accordance with the provisions of the joint resolution and the United States shall cease to be a member of the WTO.</text></paragraph></subsection>
<subsection id="H4F4F3CBC437565D7B35F16A7D55CA1B"><enum>(b)</enum><header>Joint resolutions described</header>
<paragraph id="H1FC5917A4A8D0E891CD91F8EBC0C6B1"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a)(1), a joint resolution is described in this paragraph, if it is a joint resolution of the 2 Houses of Congress and the matter after the resolving clause of such joint resolution is as follows: <quote>That the Congress authorizes and directs the President to undertake negotiations to amend or modify the rules and procedures of the Understanding on Rules and Procedures Governing the Settlement of Disputes relating to __ with respect to the affirmative determination submitted to the Congress by the WTO Dispute Settlement Review Commission on __</quote>, the first blank space being filled with the specific rules and procedures with respect to which the President is to undertake negotiations and the second blank space being filled with the date of the affirmative determination submitted to the Congress by the Commission pursuant to section 202(b) which has given rise to the joint resolution.</text></paragraph>
<paragraph id="H5676418D482E0C5B895CEB997BFEE35"><enum>(2)</enum><header>Withdrawal resolution</header><text>For purposes of subsection (a)(2), a joint resolution is described in this paragraph, if it is a joint resolution of the 2 Houses of Congress and the matter after the resolving clause of such joint resolution is as follows: <quote>That the Congress authorizes and directs the President to undertake negotiations to amend or modify the rules and procedures of the Understanding on Rules and Procedures Governing the Settlement of Disputes relating to __ with respect to the affirmative report submitted to the Congress by the WTO Dispute Settlement Review Commission on __ and if such negotiations do not result in a satisfactory solution by __, the Congress withdraws its approval, provided under section 101(a) of the Uruguay Round Agreements Act, of the WTO Agreement as defined in section 2(9) of that Act</quote>, the first blank space being filled with the specific rules and procedures with respect to which the President is to undertake negotiations, the second blank space being filled with the date of the affirmative determination submitted to the Congress by the Commission pursuant to section 202(b) which has given rise to the joint resolution, and the third blank space being filled with the date the Congress withdraws its approval of the WTO Agreement.</text></paragraph></subsection>
<subsection id="H848723634952E4AAEEC9D7B8BED748E"><enum>(c)</enum><header>Procedural provisions</header>
<paragraph id="H8BD6505A4092187788DF4C90E2C0935"><enum>(1)</enum><header>In general</header><text>The requirements of this subsection are met if the joint resolution is enacted in accordance with this subsection, and—</text>
<subparagraph id="H1A395921472D123904F763995279DF3"><enum>(A)</enum><text>in the case of a joint resolution described in subsection (b)(1), the Congress adopts and transmits the joint resolution to the President before the end of the 90-day period (excluding any day described in section 154(b) of the <act-name parsable-cite="TA74">Trade Act of 1974</act-name>), beginning on the date on which the Congress receives an affirmative determination from the Commission described in section 202(b); or</text></subparagraph>
<subparagraph id="H3494C66C4B2CEED82CE294A7F21FE38"><enum>(B)</enum><text>in the case of a joint resolution described in subsection (b)(2), the Commission has made 3 affirmative determinations described in section 202(b) during a 5-year period, and the Congress adopts and transmits the joint resolution to the President before the end of the 90-day period (excluding any day described in section 154(b) of the <act-name parsable-cite="TA74">Trade Act of 1974</act-name>), beginning on the date on which the Congress receives the third such affirmative determination.</text></subparagraph></paragraph>
<paragraph id="HD8C1D66046BAFDBDC427E592C6A9E4C"><enum>(2)</enum><header>Presidential veto</header><text>In any case in which the President vetoes the joint resolution, the requirements of this subsection are met if each House of Congress votes to override that veto on or before the later of the last day of the 90-day period referred to in subparagraph (A) or (B) of paragraph (1), whichever is applicable, or the last day of the 15-day period (excluding any day described in section 154(b) of the <act-name parsable-cite="TA74">Trade Act of 1974</act-name>) beginning on the date on which the Congress receives the veto message from the President.</text></paragraph>
<paragraph id="HCE535D054ADD6B8F75B90FBDD00D89D"><enum>(3)</enum><header>Introduction</header>
<subparagraph id="H879DDCEA4AB8EBCC3BA7999CB457B72"><enum>(A)</enum><header>Time</header><text>A joint resolution to which this section applies may be introduced at any time on or after the date on which the Commission transmits to the Congress an affirmative determination under section 202(b), and before the end of the 90-day period referred to in subparagraph (A) or (B) of paragraph (1), as the case may be.</text></subparagraph>
<subparagraph id="H2DF4DC2D44B9D5E41B3A5282A807C67"><enum>(B)</enum><header>Any Member may introduce</header><text>A joint resolution described in subsection (b) may be introduced in either House of the Congress by any Member of such House.</text></subparagraph></paragraph>
<paragraph id="HBBBBD4CB4FD6CA35B9590BBAC800BFF"><enum>(4)</enum><header>Expedited procedures</header>
<subparagraph id="HCA783AE94C3F353C093C65BAB721B00"><enum>(A)</enum><header>General rule</header><text>Subject to the provisions of this subsection, the provisions of subsections (b), (d), (e), and (f) of section 152 of the <act-name parsable-cite="TA74">Trade Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/19/2192">19 U.S.C. 2192(b)</external-xref>, (d), (e), and (f)) apply to joint resolutions described in subsection (b) to the same extent as such provisions apply to resolutions under such section.</text></subparagraph>
<subparagraph id="H4558807048BC5FE3264B54A4B2C8FA5"><enum>(B)</enum><header>Report or discharge of committee</header><text>If the committee of either House to which a joint resolution has been referred has not reported it by the close of the 45th day after its introduction (excluding any day described in section 154(b) of the <act-name parsable-cite="TA74">Trade Act of 1974</act-name>), such committee shall be automatically discharged from further consideration of the joint resolution and it shall be placed on the appropriate calendar.</text></subparagraph>
<subparagraph id="HB440A5314286D54E691EE2B100DE200"><enum>(C)</enum><header>Finance and ways and means committees</header><text>It is not in order for—</text>
<clause id="H8CF7EE794530D82F2AF15098916CDFA"><enum>(i)</enum><text>the Senate to consider any joint resolution unless it has been reported by the Committee on Finance or the committee has been discharged under subparagraph (B); or</text></clause>
<clause id="H72CD1F8D46B43B88FD7613909CF805D"><enum>(ii)</enum><text>the House of Representatives to consider any joint resolution unless it has been reported by the Committee on Ways and Means or the committee has been discharged under subparagraph (B).</text></clause></subparagraph>
<subparagraph id="H8C98962F4B4B2A4A93BF0E82ACB438B"><enum>(D)</enum><header>Special rule for House</header><text>A motion in the House of Representatives to proceed to the consideration of a joint resolution may only be made on the second legislative day after the calendar day on which the Member making the motion announces to the House his or her intention to do so.</text></subparagraph></paragraph>
<paragraph id="H400467D945C0C96E404E55B9D108ED4"><enum>(5)</enum><header>Consideration of second resolution not in order</header><text>It shall not be in order in either the House of Representatives or the Senate to consider a joint resolution (other than a joint resolution received from the other House), if that House has previously adopted a joint resolution under this section relating to the same matter.</text></paragraph></subsection>
<subsection id="H213314B2475C3F05F5A9019DF400EEE"><enum>(d)</enum><header>Rules of House of Representatives and Senate</header><text>This section is enacted by the Congress—</text>
<paragraph id="H79E880834D1B8A618750A1BC3D51BEC"><enum>(1)</enum><text>as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such is deemed a part of the rules of each House, respectively, and such procedures supersede other rules only to the extent that they are inconsistent with such other rules; and</text></paragraph>
<paragraph id="HCFBF8B224219FFD597DCE0A9B787D98"><enum>(2)</enum><text>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.</text></paragraph></subsection></section>
<section id="HDED4B27E437A6C14F0379DABA759E3F"><enum>205.</enum><header>Participation in WTO panel proceedings</header>
<subsection id="HC37EA81447A5E6DE82B52C96F34B5FE"><enum>(a)</enum><header>In general</header><text>If the United States Trade Representative, in proceedings before a dispute settlement panel or the Appellate Body of the WTO, seeks—</text>
<paragraph id="H59722238470E0EFABC1B6CBD5FB0F02"><enum>(1)</enum><text>to enforce United States rights under a multilateral trade agreement, or</text></paragraph>
<paragraph id="H0CF6E36541F963A21FA74CB9FAD2D28"><enum>(2)</enum><text>to defend a challenged action or determination of the United States Government,</text></paragraph><continuation-text continuation-text-level="subsection">a private United States person that is supportive of the position of United States Government before the panel or Appellate Body and that has a direct economic interest in the resolution by the panel or the Appellate Body of the matters in dispute shall be permitted to participate in consultations and panel proceedings with respect to those matters. The Trade Representative shall issue regulations, consistent with subsections (b) and (c), ensuring full and effective participation by any such private person.</continuation-text></subsection>
<subsection id="H4255F81B45DEAD953889798FA37129F"><enum>(b)</enum><header>Access to information</header><text>The United States Trade Representative shall make available to persons described in subsection (a) all information presented to or otherwise obtained by the Trade Representative in connection with a WTO dispute settlement proceeding. The United States Trade Representative shall promulgate regulations implementing a protective order system to protect information designated as confidential by the party submitting the information.</text></subsection>
<subsection id="H00F7D3FA4BEBEE23B94F158DA6CDB23"><enum>(c)</enum><header>Participation in panel process</header><text>Upon request from a person described in subsection (a), the United States Trade Representative shall—</text>
<paragraph id="HA5D11F2A4A2BFBEB3FD0A4BDC6FB452"><enum>(1)</enum><text>consult in advance with such person regarding the content of written submissions from the United States to the WTO panel concerned or to the other member countries involved;</text></paragraph>
<paragraph id="H9A89BDEF46F6101BE05B00AFDB0116D"><enum>(2)</enum><text>include, where appropriate, such person or its appropriate representative as an advisory member of the delegation in sessions of the dispute settlement panel;</text></paragraph>
<paragraph id="H21B26D3141E47B4DADA7CF9D48A812C"><enum>(3)</enum><text>where such person or representative, as the case may be, would bring special knowledge to the proceeding, allow such person or representative to appear before the panel, directly or through counsel, under the supervision of responsible United States Government officials; and</text></paragraph>
<paragraph id="H7E6EC92548855D474D606CB9AA52A9D"><enum>(4)</enum><text>in proceedings involving confidential information, allow appearance of such person only through counsel.</text></paragraph></subsection></section>
<section id="HCEAB377D4D2C8A43187408872CC4DCA"><enum>206.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="H209BBF444F5D2046945217B7E555E70"><enum>(1)</enum><header>Appellate Body</header><text>The term <term>Appellate Body</term> means the Appellate Body established under Article 17.1 of the Dispute Settlement Understanding.</text></paragraph>
<paragraph id="HCDB064354F5EF388872DBE9D0800BE4"><enum>(2)</enum><header>Adverse to the United States</header><text>The term <term>adverse to the United States</term>, with respect to a report of a dispute settlement panel or the Appellate Body, includes any report which holds any law, regulation, or application thereof by an agency of the Federal Government or of a State or local government in the United States to be inconsistent with obligations of the United States under a Uruguay Round Agreement (or a nullification or impairment thereof), whether or not there are other elements of the report which favor arguments made by the United States.</text></paragraph>
<paragraph id="HFD56B1FE474FE0B794993F9AB3CD1FF"><enum>(3)</enum><header>Dispute settlement panel; panel</header><text>The terms <term>dispute settlement panel</term> and <term>panel</term> mean a panel established pursuant to Article 6 of the Dispute Settlement Understanding.</text></paragraph>
<paragraph id="H3227E8DF4C974305524DA380E55295D"><enum>(4)</enum><header>Dispute Settlement Body</header><text>The term <term>Dispute Settlement Body</term> means the Dispute Settlement Body administering the rules and procedures set forth in the Dispute Settlement Understanding.</text></paragraph>
<paragraph id="H76720C104CC9D20A5B7AAD94C427295"><enum>(5)</enum><header>Dispute Settlement Understanding</header><text>The term <term>Dispute Settlement Understanding</term> 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.</text></paragraph>
<paragraph id="H8E24BEBC46D1D0888DD70A9FC2B7E02"><enum>(6)</enum><header>Uruguay Round Agreement</header><text>The term <term>Uruguay Round Agreement</term> means any of the agreements described in section 101(d) of the Uruguay Round Agreements Act.</text></paragraph>
<paragraph id="H21677BD9425ADB6E53D923BFEE85710"><enum>(7)</enum><header>World Trade Organization; wto</header><text>The terms <term>World Trade Organization</term> and <term>WTO</term> mean the organization established pursuant to the WTO Agreement.</text></paragraph>
<paragraph id="HAAFF237741D6A426545B6EA7003BFFB"><enum>(8)</enum><header>WTO agreement</header><text>The term <term>WTO Agreement</term> means the Agreement Establishing the World Trade Organization entered into on April 15, 1994.</text></paragraph></section>
<enum>III</enum><header>Reform of export-import Bank and overseas private investor Corporation</header>
<section id="H208423A3449A7023214A46B1B04E49D"><enum>301.</enum><header>Restrictions on export-import Bank assistance</header><text display-inline="no-display-inline">Section 2 of the Export-Import Bank Act of 1945 (<external-xref legal-doc="usc" parsable-cite="usc/12/635">12 U.S.C. 635</external-xref>) is amended by adding at the end the following:</text>
<quoted-block id="H0FAF3B824D2249E66E6436994EB67CE">
<subsection id="H77D3959648E8EC6E17A8CFB989CE20F"><enum>(g)</enum><header>United States content requirements</header><text>Notwithstanding any other provision of law, the Bank may not guarantee, insure, extend credit, or participate in the extension of credit in connection with any project or activity that involves the production of any commodity less than 80 percent of the value of which is attributable to content produced, manufactured, mined, or grown in the United States.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H32122834460A68944CC79DAD7D8EFCB"><enum>302.</enum><header>Restrictions on the overseas private investment Corporation</header><text display-inline="no-display-inline">Section 231A of the <act-name parsable-cite="FAA61">Foreign Assistance Act of 1961</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/22/2191a">22 U.S.C. 2191a</external-xref>) is amended—</text>
<paragraph id="HC424FE724C48E569EC4EC2A62F40D2B"><enum>(1)</enum><text>by redesignating subsection (c) as subsection (d); and</text></paragraph>
<paragraph id="H1B930D9A4722A0BCCC673EA97C27EEA"><enum>(2)</enum><text>by inserting after subsection (b) the following:</text>
<quoted-block id="H2F30C3D0408D215F36A4608F001FA79">
<subsection id="HBF3463094757A45744D1A98EF3CB935"><enum>(c)</enum><header>United States content requirements</header><text>Notwithstanding any other provision of law, the Corporation may not insure, reinsure, guarantee, or finance a project if the project involves the production of any commodity less than 80 percent of the value of which is attributable to content produced, manufactured, mined, or grown in the United States.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<enum>IV</enum><header>Currency manipulation</header>
<section id="H1D90DDD4FCBD464C9DFC00B711F24726"><enum>401.</enum><header>Negotiation period regarding currency manipulation</header><text display-inline="no-display-inline">Beginning on the date of the enactment of this Act, the President shall begin bilateral and multilateral negotiations for a 90-day period with those governments of countries that the President determines are engaged most egregiously in currency manipulation, for the purpose of seeking a prompt and orderly end to such currency manipulation and ensuring that the currencies of those countries are freely traded on international currency markets, or are established at a level that reflects a more appropriate and accurate market value. The President shall seek support in this process from international organizations and other countries and regions adversely affected by such currency manipulation. </text></section>
<section id="H5CB8D9DE55F246ECA325C8D008550FF"><enum>402.</enum><header>Findings of fact and report regarding currency manipulation</header>
<subsection id="H2AF5078CC243476996692B1945BFE026"><enum>(a)</enum><header>In general</header><text>During the 90-day negotiation period described in section 401, the International Trade Commission shall—</text>
<paragraph id="HC94DE42A17804CF289BBC58E99B6E061"><enum>(1)</enum><text>examine in detail how countries have engaged in currency manipulation to increase their exports to the United States and limit their imports of United States products; </text></paragraph>
<paragraph id="H81EE7C2EE21E4CE08C93C000A3B52500"><enum>(2)</enum><text>quantify the extent of such currency manipulation;</text></paragraph>
<paragraph id="HCD2CEC1DBE004BC2B25CCA2A2A97BC8"><enum>(3)</enum><text>examine in detail how such currency manipulation has affected and will continue to affect United States manufacturers and United States trade levels, both for imports and exports; </text></paragraph>
<paragraph id="HA2BAD8AE299947768521DB00CD2C7822"><enum>(4)</enum><text>review whether and to what extent reduction of currency manipulation and the accumulation of dollar-denominated currency reserves and public debt instruments might adversely affect United States interest rates and public debt financing; </text></paragraph>
<paragraph id="H6BE2870835F64BFE9042547CC67E60A9"><enum>(5)</enum><text>determine all available mechanisms for redress under applicable international trade agreements, including the Articles of Agreement of the International Monetary Fund, the GATT 1994 (as defined in section 2 of the Uruguay Round Agreements Act), and other Uruguay Round Agreements (as defined in section 2 of that Act), and under United States trade laws; and </text></paragraph>
<paragraph id="HAE46165E19C84A218143BA5D00381146"><enum>(6)</enum><text>examine other relevant matters in connection with the issues described in paragraphs (1) through (5). </text></paragraph></subsection>
<subsection id="H8AB6A387ADD342298CCA1DDDFB306AA"><enum>(b)</enum><header>Report</header><text>Not later than 90 days after the date of the enactment of this Act, the International Trade Commission shall provide a detailed report to the President, the United States Trade Representative, the Secretary of the Treasury, and the appropriate congressional committees on the findings made under subsection (a). </text></subsection></section>
<section id="H1E10F3FAEED74D138D8954989E00009E"><enum>403.</enum><header>Proceedings regarding currency manipulation</header>
<subsection id="H04C7AAE86A424B848C068359009DE059"><enum>(a)</enum><header>Proceeding</header><text>At the end of the 90-day negotiation period provided for in section 401, if agreements are not reached by the President to promptly end the currency manipulation with respect to which the negotiations were conducted, the President shall institute proceedings under the relevant provisions of international law and United States trade laws, including section 301 of the Trade Act of 1974, with respect to those countries that, based on the findings of the International Trade Commission under section 402, continue to engage in the most egregious currency manipulation. In such proceedings, the President shall, in addition to seeking a prompt end to currency manipulation, seek appropriate compensation for the damages incurred by manufacturers and other affected parties in the United States as a result of the currency manipulation.</text></subsection>
<subsection id="H7E2180207A9942D396DED340E29DDA27"><enum>(b)</enum><header>Report to Congress if No Action Taken</header><text> If the President does not enter into negotiations with any country under section 401, or if the President does not institute proceedings under this section, the President shall, not later than 120 days after the date of the enactment of this Act, provide to the appropriate congressional committees a detailed explanation of why he has not done so.</text></subsection></section>
<section id="HC63D75E8442C45E49C2B67E9E94E1920"><enum>404.</enum><header>Additional reports and recommendations</header>
<subsection id="HC156BE9B512F4A62A23680204BF7001B"><enum>(a)</enum><header>National security</header><text>Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall provide a detailed report to the appropriate congressional committees evaluating the effects on the national security of the United States of countries engaging in significant currency manipulation, and the effect of such currency manipulation on critical manufacturing sectors such as the semiconductor industry.</text></subsection>
<subsection id="HA659B460C3AE408AA19F33CBC454AB98"><enum>(b)</enum><header>Other unfair Trade practices</header><text>Not later than 90 days after the date of the enactment of this Act, the United States Trade Representative and the International Trade Commission shall evaluate and report in detail to the appropriate congressional committees on other trade practices and trade barriers by major East Asian trading countries that may violate international trade agreements, including the practice of maintaining a value-added or other tax regime that effectively discriminates against imports by underpricing domestically produced goods. </text></subsection>
<subsection id="HD4A2BECB02AD4B74ADB972C4DA4D0A0"><enum>(c)</enum><header>Trade enforcement</header><text>Not later than 90 days after the date of the enactment of this Act, the United States Trade Representative and the International Trade Commission shall report in detail to the appropriate congressional committees on steps that could be taken to significantly improve trade enforcement efforts against unfair trade practices by competitor trading countries, including making recommendations for additional support for trade enforcement efforts. </text></subsection>
<subsection id="HDEAFE2C59E814B2B8CFF71B9ADEFCE4"><enum>(d)</enum><header>Trade promotion</header><text>Not later than 90 days after the date of the enactment of this Act, the Secretary of State, the Secretary of Commerce, and the United States Trade Representative shall report in detail to the appropriate congressional committees on steps that could be taken to significantly improve trade promotion for United States goods and services, including recommendations on additional support to improve such trade promotion. </text></subsection></section>
<section id="H5C17EF14779B45A69EC8DC52E3FCEC0"><enum>405.</enum><header>Currency manipulation defined</header><text display-inline="no-display-inline">In this title, the term <quote>currency manipulation</quote> means—</text>
<paragraph id="H994A373CE68E4A9B873FDC2724479000"><enum>(1)</enum><text>large-scale manipulation of exchange rates by a country in order to gain an unfair competitive advantage as stated in Article IV of the Articles of Agreement of the International Monetary Fund and related provisions; </text></paragraph>
<paragraph id="H2AAB531C21214310829E780029A27BA5"><enum>(2)</enum><text>sustained, large-scale currency intervention by a country in one direction, through mandatory foreign exchange sales at the central bank of a country at a fixed exchange rate; or </text></paragraph>
<paragraph id="HA4BDA44B971148CCAB73A56C76159702"><enum>(3)</enum><text>other mechanisms used by a country to maintain a currency at a fixed exchange rate relative to the currency of another country.</text></paragraph></section>
<enum>V</enum><header>Internal Revenue Code Amendments</header>
<section id="H3CB7665844ECF5C967FBF18359AD03D"><enum>501.</enum><header>Disincentivization of corporate expatriation to avoid United States income tax</header>
<subsection id="H254763B24BBA4845A5FE6944B8F8131C"><enum>(a)</enum><header>In general</header><text>Paragraph 4 of <external-xref legal-doc="usc" parsable-cite="usc/26/7701">section 7701(a)</external-xref> of the Internal Revenue Code of 1986 (defining domestic) is amended to read as follows:</text>
<quoted-block id="H3A9C921740EDAD6A254EF8A3E6DFE45">
<paragraph id="H2BC70F2149490F38074CA994364FB3B"><enum>(4)</enum><header>Domestic</header>
<subparagraph id="H72ECBF694279C0AFC3BE9AA7D1967CF"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>domestic</term> when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State unless, in the case of a partnership, the Secretary provides otherwise by regulations.</text></subparagraph>
<subparagraph id="H4DD30D384B56A9DE6131D79F9B00DDA"><enum>(B)</enum><header>Certain corporations treated as domestic</header>
<clause id="H7893C64D485753AE9400FA8D7EEB4B4"><enum>(i)</enum><header>In general</header><text>The acquiring corporation in a corporate expatriation transaction shall be treated as a domestic corporation.</text></clause>
<clause id="HF2B77C154ED02C42587A33BDDBA5999"><enum>(ii)</enum><header>Corporate expatriation transaction</header><text>For purposes of this subparagraph, the term <term>corporate expatriation transaction</term> means any transaction if—</text>
<subclause id="H6E7329584DC033138A23C1A7A1E84C3"><enum>(I)</enum><text>a nominally foreign corporation (referred to in this subparagraph as the <quote>acquiring corporation</quote>) acquires, as a result of such transaction, directly or indirectly substantially all of the properties held directly or indirectly by a domestic corporation, and</text></subclause>
<subclause id="H6CA8E0AD47E7C65447C222BA7E822DE"><enum>(II)</enum><text>immediately after the transaction, more than 80 percent of the stock (by vote or value) of the acquiring corporation is held by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation.</text></subclause></clause>
<clause id="H2C95C2344F5726A26C6E7FA494B51BE"><enum>(iii)</enum><header>Lower stock ownership requirement in certain cases</header><text>Subclause (II) of clause (ii) shall be applied by substituting <quote>50 percent</quote> for <quote>80 percent</quote> with respect to any nominally foreign corporation if—</text>
<subclause id="H7397A816482E356FAA2B8B86A2A39EE"><enum>(I)</enum><text>such corporation does not have substantial business activities (when compared to the total business activities of the expanded affiliated group) in the foreign country in which or under the law of which the corporation is created or organized, and</text></subclause>
<subclause id="HC2822CA1452DE135037477B5AF0400B"><enum>(II)</enum><text>the stock of the corporation is publicly traded and the principal market for the public trading of such stock is in the United States.</text></subclause></clause>
<clause id="H0E597DF746D01797E41E09A7FE6DAB9"><enum>(iv)</enum><header>Partnership transactions</header><text>The term <term>corporate expatriation transaction</term> includes any transaction if—</text>
<subclause id="HB95EB6FC4F092915B3F5AABE04AEF4A"><enum>(I)</enum><text>a nominally foreign corporation (referred to in this subparagraph as the <quote>acquiring corporation</quote>) acquires, as a result of such transaction, directly or indirectly properties constituting a trade or business of a domestic partnership,</text></subclause>
<subclause id="HAF417F024101D3E7019DC68735AE98D"><enum>(II)</enum><text>immediately after the transaction, more than 80 percent of the stock (by vote or value) of the acquiring corporation is held by former partners of the domestic partnership or related foreign partnerships (determined without regard to stock of the acquiring corporation which is sold in a public offering related to the transaction), and</text></subclause>
<subclause id="H52FA3F6948D3EC2885FC09989BCD7D0"><enum>(III)</enum><text>the acquiring corporation meets the requirements of subclauses (I) and (II) of clause (iii).</text></subclause></clause>
<clause id="H4DADE782423B4CAEDDD18E9091FC83F"><enum>(v)</enum><header>Special rules</header><text>For purposes of this subparagraph—</text>
<subclause id="H5D2CC84E479B9C8E5F4EA9B4C8D2CDC"><enum>(I)</enum><text>a series of related transactions shall be treated as 1 transaction, and</text></subclause>
<subclause id="H38A51F3E4AF889FF6B9808A900BCD11"><enum>(II)</enum><text>stock held by members of the expanded affiliated group which includes the acquiring corporation shall not be taken into account in determining ownership.</text></subclause></clause>
<clause id="HF354ADCD4492FE558CB21F88FD9BF6E"><enum>(vi)</enum><header>Other definitions</header><text>For purposes of this subparagraph—</text>
<subclause id="HF7A72D6D4B76808A192F23BE1DEAC1C"><enum>(I)</enum><header>Nominally foreign corporation</header><text>The term <term>nominally foreign corporation</term> means any corporation which would (but for this subparagraph) be treated as a foreign corporation.</text></subclause>
<subclause id="HEC22707C429F06285DF96587A5130D5"><enum>(II)</enum><header>Expanded affiliated group</header><text>The term <term>expanded affiliated group</term> means an affiliated group (as defined in section 1504(a) without regard to section 1504(b)).</text></subclause>
<subclause id="H88156599448EF18A01553E9C569DBDB"><enum>(III)</enum><header>Related foreign partnership</header><text>A foreign partnership is related to a domestic partnership if they are under common control (within the meaning of section 482), or they shared the same trademark or tradename.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H89D1461441374BD25A8BC68C58EFDAD"><enum>(b)</enum><header>Effective dates</header><text></text>
<paragraph id="H64CC1CA74404B81A3385A2A1D37E73E"><enum>(1)</enum><header>In general</header><text>The amendment made by this section shall apply to corporate expatriation transactions completed after December 31, 2003.</text></paragraph>
<paragraph id="H1D1F17BE4770304FE549C1B4F73B12E"><enum>(2)</enum><header>Special rule</header><text>The amendment made by this section shall also apply to corporate expatriation transactions completed on or before December 31, 2003, but only with respect to taxable years of the acquiring corporation beginning after such date.</text></paragraph></subsection></section>
<section id="HAE11F4A04D00BB9862D5818D072CDF2"><enum>502.</enum><header>Inclusion of income from U.S. imports in subpart f income</header>
<subsection id="HB223AD12476A5EC17CB3ADA6AE8063D"><enum>(a)</enum><header>In general</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/954">section 954</external-xref> of the Internal Revenue Code of 1986 (defining foreign base company income) is amended by striking <quote>and</quote> at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting <quote>, and</quote>, and by adding at the end the following:</text>
<quoted-block id="H91FEFC2A4F36F8F9C154D5B8A99BFED">
<paragraph id="H849CD8E74D5E84A4BB68129CA822624"><enum>(6)</enum><text>the foreign base company United States import income for the taxable year (determined under subsection (j) and reduced as provided in subsection (b)(5)).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H1EA825434C8BB022551CA1A670E5EFF"><enum>(b)</enum><text>Section 954 of such Code (defining foreign base company income) is amended by adding at the end the following:</text>
<quoted-block id="HBD58C73C484EA235272A9F82BA61800">
<subsection id="H728CD9A14BFA8760C6EB1AA95FDEAD6"><enum>(j)</enum><header>Foreign base company United States import income</header><text>For purposes of subsection (a)(6)—</text>
<paragraph id="H798FF9B3498619DD21DB9A8E9869AA3"><enum>(1)</enum><header>In general</header><text>The term <term>foreign base company United States import income</term> means gross income derived from the sale of goods manufactured, produced, grown, or extracted outside the United States and imported into the United States.</text></paragraph>
<paragraph id="H522C6EFD47448FCB148266BE1B1F8ED"><enum>(2)</enum><header>Not treated as another kind of base company income</header><text>Income of a corporation which is foreign base company United States import income shall not be considered foreign base company income of such corporation under paragraph (2), (3), (4), or (5) of subsection (a).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H5A72CE904F9633129F9EE5B739B176D"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section apply to taxable years of controlled foreign corporations beginning after the date of enactment of this Act and to taxable years of United States shareholders in which or with which such taxable years of controlled foreign corporations end.</text></subsection></section>
<section id="H81512FD04550FD0628F1D996FF26BE2"><enum>503.</enum><header>Denial of treaty benefits for certain deductible payments</header>
<subsection id="HE044A6C14AEADFB20D5FEEA384D6244"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/894">Section 894</external-xref> of the Internal Revenue Code of 1986 (relating to income affected by treaty) is amended by adding at the end the following new subsection:</text>
<quoted-block id="H6570C9B944133FBB384B2DB19F2D3CF">
<subsection id="HD57359494FBC0314BBAA7698D85C800"><enum>(d)</enum><header>Denial of treaty benefits for certain deductible payments</header>
<paragraph id="H0775945E46CEBA51B89CD1BF80DEC4E"><enum>(1)</enum><header>In general</header><text>A foreign entity shall not be entitled under any income tax treaty of the United States with a foreign country to any reduced rate of any withholding tax imposed by this title on any deductible foreign payment unless such entity is predominantly owned by individuals who are residents of such foreign country.</text></paragraph>
<paragraph id="H01B8C28146879572BEDB2B8D8CB3793"><enum>(2)</enum><header>Deductible foreign payment</header><text>For purposes of paragraph (1), the term <term>deductible foreign payment</term> means any payment—</text>
<subparagraph id="H61894A7D4F8E1C34CDD887B3931395E"><enum>(A)</enum><text>which is made by a domestic entity directly or indirectly to a related person which is a foreign entity, and</text></subparagraph>
<subparagraph id="H6811E1A64652B78AEA08118BD760048"><enum>(B)</enum><text>which is allowable as a deduction under this chapter.</text></subparagraph></paragraph>
<paragraph id="H153660F546F344E6DC87DEAB58FB790"><enum>(3)</enum><header>Domestic and foreign entities; related person</header><text>For purposes of this subsection—</text>
<subparagraph id="HEF85527A46AD7E9EA850D8AF458700F"><enum>(A)</enum><header>Domestic entity</header><text>The term <term>domestic entity</term> means any domestic corporation or domestic partnership.</text></subparagraph>
<subparagraph id="H62F41F4E469A75C9FE76FB84B73585F"><enum>(B)</enum><header>Foreign entity</header><text>The term <term>foreign entity</term> means any foreign corporation or foreign partnership.</text></subparagraph>
<subparagraph id="H2881D9C5446F8291A1D40E9BEA00DCC"><enum>(C)</enum><header>Related person</header><text>The term <term>related person</term> has the meaning given such term by section 954(d)(3) (determined by substituting <quote>domestic entity</quote> for <quote>controlled foreign corporation</quote> each place it appears).</text></subparagraph></paragraph>
<paragraph id="HC480574C483191416408D3AB00D3FF1"><enum>(4)</enum><header>Predominant ownership</header><text>For purposes of this subsection—</text>
<subparagraph id="H17EF011B4E5143340A2752887072FDF"><enum>(A)</enum><header>In general</header><text>An entity is predominantly owned by individuals who are residents of a foreign country if—</text>
<clause id="H435F7558494E5563CC6AAA9893D71CE"><enum>(i)</enum><text>in the case of a corporation, more than 50 percent (by value) of the stock of such corporation is owned (within the meaning of section 883(c)(4)) by individuals who are residents of such foreign country, or</text></clause>
<clause id="H10F920CF49F377280ED2B7B495C8E00"><enum>(ii)</enum><text>in the case of a partnership, more than 50 percent (by value) of the beneficial interests in such partnership are so owned.</text></clause></subparagraph>
<subparagraph id="H0AEF5B514F52DF238EF314B68BA93B5"><enum>(B)</enum><header>Publicly traded corporations</header><text>A foreign corporation also shall be treated as predominantly owned by individuals who are residents of a foreign country if—</text>
<clause id="H7EA83B6044EB7CF1E0397A81B9585EC"><enum>(i)</enum>
<subclause display-inline="yes-display-inline" id="H746265D44F607225B69A1882E37166F"><enum>(I)</enum><text>the stock of such corporation is primarily and regularly traded on an established securities market in such foreign country, and</text></subclause>
<subclause indent="up1" id="H6E77D03D44D2F04DA0E0DCB69C49A65"><enum>(II)</enum><text>such corporation has activities within such foreign country which are substantial in relation to the total activities of such corporation and its related persons, or</text></subclause></clause>
<clause id="HC050528A4C882A476F9534A41FD33BB"><enum>(ii)</enum><text>such corporation is wholly owned (directly or indirectly) by another foreign corporation which is described in clause (i).</text></clause></subparagraph></paragraph>
<paragraph id="H77F20CB04FF80CD49D300EBFA374C1F"><enum>(5)</enum><header>Conduit payments</header><text>Under regulations prescribed by the Secretary, paragraph (1) shall not apply to a payment received by a foreign entity referred to in paragraph (1) if—</text>
<subparagraph id="HC743436546D7F616D6A3FA94AFA5151"><enum>(A)</enum><text>within a reasonable period after such entity receives such payment, such entity makes a comparable payment directly or indirectly to another related person,</text></subparagraph>
<subparagraph id="H449B4B49487C8B52D412A1BDF96EE1D"><enum>(B)</enum><text>such related person is a resident of a foreign country with which the United States has an income tax treaty,</text></subparagraph>
<subparagraph id="HCCC432794831A7B388110F8AF94FAE8"><enum>(C)</enum><text>such related person is predominantly owned by individuals who are residents of such country, and</text></subparagraph>
<subparagraph id="H380AEDB94FCF95486D1F8E9DB6B0FF8"><enum>(D)</enum><text>the withholding tax rate reduction under such treaty is not less than the withholding tax rate reduction applicable (without regard to this paragraph) to the payment received by such foreign entity.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H184BEA4541EFAE9B206135B6D3F065B"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall take effect on the date of the enactment of this Act.</text></subsection></section>
<section id="H28B0A23147FCED39B70B839C00E2A13"><enum>504.</enum><header>Repeal of exclusion for extraterritorial income</header>
<subsection id="H4116B690453EC7F73EFB858BDE4D2E1"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/114">Section 114</external-xref> of the Internal Revenue Code of 1986 is hereby repealed.</text></subsection>
<subsection id="H10B5206D4647D42AE3882697002DFB4"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="HED604117477487C7BBDE87AC80BFC31"><enum>(1)</enum><text>Subpart E of part III of subchapter N of chapter 1 of such Code (relating to qualifying foreign trade income) is hereby repealed.</text></paragraph>
<paragraph id="H902F729343257A267FFF1391C59BD9C"><enum>(2)</enum><text>The table of subparts for such part III is amended by striking the item relating to subpart E.</text></paragraph>
<paragraph id="HE7C624494B80F5B8CDCC17BAFE9B76F"><enum>(3)</enum><text>The table of sections for part III of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 114.</text></paragraph></subsection>
<subsection id="H4E0F9A9F4A272570F92AEB9CF4BFA38"><enum>(c)</enum><header>Effective date</header>
<paragraph id="H5E9FFD1D4F0FC87CDF41CE9B98DCC2A"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to transactions occurring after the date of the enactment of this Act.</text></paragraph>
<paragraph id="H204EFD9543BE66343FCF3D8711F7A41"><enum>(2)</enum><header>Binding contracts</header><text>The amendments made by this section shall not apply to any transaction in the ordinary course of a trade or business which occurs pursuant to a binding contract—</text>
<subparagraph id="HA074CD9946DA1C274CB685B8CB03253"><enum>(A)</enum><text>which is between the taxpayer and a person who is not a related person (as defined in section 943(b)(3) of such Code, as in effect on the day before the date of the enactment of this Act), and</text></subparagraph>
<subparagraph id="H5E9DECEC468E9A07FBC2FDAAD552C53"><enum>(B)</enum><text>which is in effect on April 11, 2003, and at all times thereafter.</text></subparagraph><continuation-text continuation-text-level="paragraph">For purposes of this paragraph, a binding contract shall include a purchase option, renewal option, or replacement option which is included in such contract.</continuation-text></paragraph></subsection>
<subsection id="H7AD00BF645C4834B56D9FEACCACD06D"><enum>(d)</enum><header>Revocation of Section 943(<enum-in-header>e</enum-in-header>) elections</header>
<paragraph id="HF948F09D4784B31142AACDA8FEA2132"><enum>(1)</enum><header>In general</header><text>In the case of a corporation that elected to be treated as a domestic corporation under <external-xref legal-doc="usc" parsable-cite="usc/26/943">section 943(e)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of this Act)—</text>
<subparagraph id="HA9ADBC5D491A837B526F889399A9D80"><enum>(A)</enum><text>the corporation may revoke such election, effective as of the date of the enactment of this Act, and</text></subparagraph>
<subparagraph id="H892DAB4A4BC438358151F4AFBFEBBA8"><enum>(B)</enum><text>if the corporation does revoke such election—</text>
<clause id="HA97BCEB84EAC4E20A38D7082CFE34B3"><enum>(i)</enum><text>such corporation shall be treated as a domestic corporation transferring (as of the date of the enactment of this Act) all of its property to a foreign corporation in connection with an exchange described in <external-xref legal-doc="usc" parsable-cite="usc/26/354">section 354</external-xref> of the Internal Revenue Code of 1986, and</text></clause>
<clause id="HE94F4CAE40D34FCD564219ABA45D007"><enum>(ii)</enum><text>no gain or loss shall be recognized on such transfer.</text></clause></subparagraph></paragraph>
<paragraph id="H8ADB4ECD4D9AD8C318D17B8CB73F980"><enum>(2)</enum><header>Exception</header><text>Subparagraph (B)(ii) of paragraph (1) shall not apply to gain on any asset held by the revoking corporation if—</text>
<subparagraph id="H4DEBC8D545FD7B32B520CC86ABBEE8F"><enum>(A)</enum><text>the basis of such asset is determined in whole or in part by reference to the basis of such asset in the hands of the person from whom the revoking corporation acquired such asset,</text></subparagraph>
<subparagraph id="H498A02DF474D6BEA6A054E98E5007DB"><enum>(B)</enum><text>the asset was acquired by transfer (not as a result of the election under section 943(e) of such Code) occurring on or after the 1st day on which its election under section 943(e) of such Code was effective, and</text></subparagraph>
<subparagraph id="H69081FD34B2F830CB7E29D97186C36A"><enum>(C)</enum><text>a principal purpose of the acquisition was the reduction or avoidance of tax.</text></subparagraph></paragraph></subsection>
<subsection id="H37ABBBEA437F7288D10A9DBA7CF77BF"><enum>(e)</enum><header>General transition</header>
<paragraph id="HF171D0874585681810F813A9744BDDD"><enum>(1)</enum><header>In general</header><text>In the case of a taxable year ending after the date of the enactment of this Act and beginning before January 1, 2009, for purposes of chapter 1 of such Code, each current FSC/ETI beneficiary shall be allowed a deduction equal to the transition amount determined under this subsection with respect to such beneficiary for such year.</text></paragraph>
<paragraph id="H3E9BC6A74A97E5F56EBE44BACCA12B3"><enum>(2)</enum><header>Current fsc/eti beneficiary</header><text>The term <term>current FSC/ETI beneficiary</term> means any corporation which entered into one or more transactions during its taxable year beginning in calendar year 2001 with respect to which FSC/ETI benefits were allowable.</text></paragraph>
<paragraph id="H6D53F8CC442065163F43618DE898D9B"><enum>(3)</enum><header>Transition amount</header><text>For purposes of this subsection—</text>
<subparagraph id="H1A5D99A54A47D800982084A668C8BEE"><enum>(A)</enum><header>In general</header><text>The transition amount applicable to any current FSC/ETI beneficiary for any taxable year is the phaseout percentage of the adjusted base period amount.</text></subparagraph>
<subparagraph id="HB85FCFE54F8202FFAB8DEBABB1EDDC5"><enum>(B)</enum><header>Phaseout percentage</header>
<clause id="H810FE3D74C3FD49218094AA5B245CC0"><enum>(i)</enum><header>In general</header><text>In the case of a taxpayer using the calendar year as its taxable year, the phaseout percentage shall be determined under the following table:</text>
<table table-type="subformat-2-Flush-Right-Boxhead-Fig" align-to-level="section" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" blank-lines-before="1" subformat="S6211">
<tgroup cols="2"><colspec colname="col1" coldef="txt" min-data-value="0" colwidth="275" colsep="0"/><colspec colname="col2" coldef="txt" min-data-value="0" colwidth="80" colsep="0"/><thead>
<row><entry colname="I49" align="left" rowsep="0"></entry><entry colname="I50" align="right" rowsep="0"><bold>The phaseout</bold></entry></row>
<row><entry colname="I49" align="left" rowsep="0"> <bold>Years:</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>percentage is:</bold></entry></row></thead>
<tbody>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2004 and 2005</entry><entry colname="I07" align="right" rowsep="0">100</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2006</entry><entry colname="I07" align="right" rowsep="0">75</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2007</entry><entry colname="I07" align="right" rowsep="0">75</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2008</entry><entry colname="I07" align="right" rowsep="0">50</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2009 and thereafter</entry><entry colname="I07" align="right" rowsep="0">0.</entry></row></tbody></tgroup></table> </clause>
<clause id="H266ED5944458F87B5F55609ECAFFEF4"><enum>(ii)</enum><header>Special rule for 2003</header><text>The phaseout percentage for 2003 shall be the amount that bears the same ratio to 100 percent as the number of days after the date of the enactment of this Act bears to 365.</text></clause>
<clause id="HBE14F128410C791ECBC6EDB85B30D9D"><enum>(iii)</enum><header>Special rule for fiscal year taxpayers</header><text>In the case of a taxpayer not using the calendar year as its taxable year, the phaseout percentage is the weighted average of the phaseout percentages determined under the preceding provisions of this paragraph with respect to calendar years any portion of which is included in the taxpayer’s taxable year. The weighted average shall be determined on the basis of the respective portions of the taxable year in each calendar year.</text></clause></subparagraph></paragraph>
<paragraph id="H1F86C44A4ED180C65B58DDB8ECB00B1"><enum>(4)</enum><header>Adjusted base period amount</header><text>For purposes of this subsection—</text>
<subparagraph id="H268B50BC49B24F1FF874EEBAA3F246B"><enum>(A)</enum><header>In general</header><text>In the case of a taxpayer using the calendar year as its taxable year, the adjusted base period amount for any taxable year is the base period amount multiplied by the applicable percentage, as determined in the following table:</text>
<table table-type="subformat-2-Flush-Right-Boxhead-Fig" align-to-level="section" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" blank-lines-before="1" subformat="S6211">
<tgroup cols="2"><colspec colname="col1" coldef="txt" min-data-value="0" colwidth="275" colsep="0"/><colspec colname="col2" coldef="txt" min-data-value="0" colwidth="80" colsep="0"/><thead>
<row><entry colname="I49" align="left" rowsep="0"></entry><entry colname="I50" align="right" rowsep="0"><bold>The applicable</bold></entry></row>
<row><entry colname="I49" align="left" rowsep="0"> <bold>Years:</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>percentage is:</bold></entry></row></thead>
<tbody>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2003</entry><entry colname="I07" align="right" rowsep="0">100</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2004</entry><entry colname="I07" align="right" rowsep="0">100</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2005</entry><entry colname="I07" align="right" rowsep="0">105</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2006</entry><entry colname="I07" align="right" rowsep="0">110</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2007</entry><entry colname="I07" align="right" rowsep="0">115</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2008</entry><entry colname="I07" align="right" rowsep="0">120</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2009 and thereafter</entry><entry colname="I07" align="right" rowsep="0">0.</entry></row></tbody></tgroup></table> </subparagraph>
<subparagraph id="H6A20FBC94051BF5F3CB2918AF003017"><enum>(B)</enum><header>Base period amount</header><text>The base period amount is the aggregate FSC/ETI benefits for the taxpayer’s taxable year beginning in calendar year 2001.</text></subparagraph>
<subparagraph id="H688D35804888D69789D792BFC82EFE6"><enum>(C)</enum><header>Special rules for fiscal year taxpayers, etc</header><text>Rules similar to rules of clauses (ii) and (iii) of paragraph (3)(B) shall apply for purposes of this paragraph.</text></subparagraph></paragraph>
<paragraph id="H18C8039A49791A9313AC3982B875BC1"><enum>(5)</enum><header>FSC/ETI benefit</header><text>For purposes of this subsection, the term <term>FSC/ETI benefit</term> means—</text>
<subparagraph id="HBCF7CD1841362B6ADEA560994E6DFA3"><enum>(A)</enum><text>amounts excludable from gross income under section 114 of such Code, and</text></subparagraph>
<subparagraph id="HD7DA3C71400C4933C929479D941CCFE"><enum>(B)</enum><text>the exempt foreign trade income of related foreign sales corporations from property acquired from the taxpayer (determined without regard to section 923(a)(5) of such Code (relating to special rule for military property), as in effect on the day before the date of the enactment of the FSC Repeal and Extraterritorial Income Exclusion Act of 2000).</text></subparagraph><continuation-text continuation-text-level="paragraph">In determining the FSC/ETI benefit there shall be excluded any amount attributable to a transaction with respect to which the taxpayer is the lessor unless the leased property was manufactured or produced in whole or in part by the taxpayer.</continuation-text></paragraph>
<paragraph id="H9868BB4B4279F5BCE15F48BA64FF9F0"><enum>(6)</enum><header>Special rule for farm cooperatives</header><text>Under regulations prescribed by the Secretary, determinations under this subsection with respect to an organization described in section 943(g)(1) of such Code, as in effect on the day before the date of the enactment of this Act, shall be made at the cooperative level and the purposes of this subsection shall be carried out by excluding amounts from the gross income of its patrons.</text></paragraph>
<paragraph id="HCB2A03334907BF78F5B315BDC6B6C33"><enum>(7)</enum><header>Certain rules to apply</header><text>Rules similar to the rules of section 41(f) of such Code shall apply for purposes of this subsection.</text></paragraph>
<paragraph id="HECEA07C246B90E34C10A09AF2926B2F"><enum>(8)</enum><header>Coordination with binding contract rule</header><text>The deduction determined under paragraph (1) for any taxable year shall be reduced by the phaseout percentage of any FSC/ETI benefit realized for the taxable year by reason of subsection (c)(2). The preceding sentence shall not apply to any FSC/ETI benefit attributable to a transaction described in the last sentence of paragraph (5).</text></paragraph>
<paragraph id="HDF578B1E46C2C32083836AA46E4B72A"><enum>(9)</enum><header>Special rule for taxable year which includes date of enactment</header><text>In the case of a taxable year which includes the date of the enactment of this Act, the deduction allowed under this subsection to any current FSC/ETI beneficiary shall in no event exceed—</text>
<subparagraph id="HC27500E347816D6169EC4F9CBD4A184"><enum>(A)</enum><text>100 percent of such beneficiary’s adjusted base period amount for calendar year 2003, reduced by</text></subparagraph>
<subparagraph id="H4F103E2E4825C6D0CC4648BBFBCB83C"><enum>(B)</enum><text>the aggregate FSC/ETI benefits of such beneficiary with respect to transactions occurring during the portion of the taxable year ending on the date of the enactment of this Act.</text></subparagraph></paragraph></subsection></section>
<section id="H9D45A1DD48A7C7E6360370B0F7574DA"><enum>505.</enum><header>Deduction relating to income attributable to United States production activities</header>
<subsection id="H4753FBEA48E2822EC1CA408055B0EF9"><enum>(a)</enum><header>In general</header><text>Part VIII of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to special deductions for corporations) is amended by adding at the end the following new section:</text>
<quoted-block id="H1B377A05434F56CFC23804A3B2A35FD">
<section id="H4C0F7F2143BA8176C1DD9BAA2BCD8D4"><enum>250.</enum><header>Income attributable to domestic production activities</header>
<subsection id="H3ADBA78F49F81EB2167284A4182BD73"><enum>(a)</enum><header>In general</header><text>In the case of a corporation, there shall be allowed as a deduction an amount equal to 10 percent of the qualified production activities income of the corporation for the taxable year.</text></subsection>
<subsection id="H9CA84EBC40319E521E5AC8A579CDFBF"><enum>(b)</enum><header>Phase in</header><text>In the case of taxable years beginning in 2006, 2007, 2008 or 2009, subsection (a) shall be applied by substituting for the percentage contained therein the transition percentage determined under the following table:</text>
<table table-type="subformat-2-Flush-Right-Boxhead-Fig" align-to-level="section" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" blank-lines-before="1" subformat="S6211">
<tgroup cols="2"><colspec colname="col1" coldef="txt" min-data-value="0" colwidth="275" colsep="0"/><colspec colname="col2" coldef="txt" min-data-value="0" colwidth="80" colsep="0"/><thead>
<row><entry colname="I49" align="left" rowsep="0"><bold>Taxable years</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>The transition</bold></entry></row>
<row><entry colname="I49" align="left" rowsep="0"><bold>beginning in:</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>percentage is:</bold></entry></row></thead>
<tbody>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2006</entry><entry colname="I07" align="right" rowsep="0">1</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2007</entry><entry colname="I07" align="right" rowsep="0">2</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2008</entry><entry colname="I07" align="right" rowsep="0">4</entry></row>
<row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2009</entry><entry colname="I07" align="right" rowsep="0">9.</entry></row></tbody></tgroup></table> </subsection>
<subsection id="H2EC3A5064F9CE396CE704699B38F64E"><enum>(c)</enum><header>Qualified production activities income</header><text>For purposes of this section, the term <term>qualified production activities income</term> means the product of—</text>
<paragraph id="HDF640C8B43967F48A3FB838B42AECE4"><enum>(1)</enum><text>the portion of the modified taxable income of the taxpayer which is attributable to domestic production activities, and</text></paragraph>
<paragraph id="HF830A940451113EE973F7D891B18FC7"><enum>(2)</enum><text>the domestic/foreign fraction.</text></paragraph></subsection>
<subsection id="H678E12CC473C7D09FA9A408FFBB8118"><enum>(d)</enum><header>Determination of income attributable to domestic production activities</header><text>For purposes of this section—</text>
<paragraph id="H53432E15450319D58D7F3895914CA8E"><enum>(1)</enum><header>In general</header><text>The portion of the modified taxable income which is attributable to domestic production activities is so much of the modified taxable income for the taxable year as does not exceed—</text>
<subparagraph id="H4424B9D74C227D88D57062BA44D6029"><enum>(A)</enum><text>the taxpayer’s domestic production gross receipts for such taxable year, reduced by</text></subparagraph>
<subparagraph id="HB4BE55844A6572D847C71CB3EA6CC82"><enum>(B)</enum><text>the sum of—</text>
<clause id="H28ECC35A4BF3FFF81E0AC9B7F4F3FE1"><enum>(i)</enum><text>the costs of goods sold that are allocable to such receipts,</text></clause>
<clause id="HC8E9EDDE4A6D0DED626015B1C286D04"><enum>(ii)</enum><text>other deductions, expenses, or losses directly allocable to such receipts, and</text></clause>
<clause id="HCCEE095A4A5ECF1E9B70518CBF6ED50"><enum>(iii)</enum><text>a ratable portion of other deductions, expenses, and losses that are not directly allocable to such receipts or another class of income.</text></clause></subparagraph></paragraph>
<paragraph id="HBFAA5E5E47597053E8B68E90BF5252A"><enum>(2)</enum><header>Allocation method</header><text>Except as provided in regulations, allocations under clauses (ii) and (iii) of paragraph (1)(B) shall be made under the principles used in determining the portion of taxable income from sources within and without the United States.</text></paragraph>
<paragraph id="HADE221EA4547A86FC89786B9F37D069"><enum>(3)</enum><header>Special rule</header>
<subparagraph id="H0ABBEE634865A8A3536D858102C3D57"><enum>(A)</enum><text>For purposes of determining costs under clause (i) of paragraph (1)(B), any item or service brought into the United States without a transfer price meeting the requirements of section 482 shall be treated as acquired by purchase, and its cost shall be treated as not less than its value when it entered the United States. A similar rule shall apply in determining the adjusted basis of leased or rented property where the lease or rental gives rise to domestic production gross receipts.</text></subparagraph>
<subparagraph id="H960340B540D190EAE5F218AF8002C2D"><enum>(B)</enum><text>In the case of any property described in subparagraph (A) that had been exported by the taxpayer for further manufacture, the increase in cost (or adjusted basis) under subparagraph (A) shall not exceed the difference between the value of the property when exported and the value of the property when brought back into the United States after the further manufacture.</text></subparagraph></paragraph>
<paragraph id="HBB9B735F48E04EA6E78770A2F73D04E"><enum>(4)</enum><header>Modified taxable income</header><text>The term <term>modified taxable income</term> means taxable income computed without regard to the deduction allowable under this section.</text></paragraph></subsection>
<subsection id="HE8038A0F44D548322B8B85B9A00137B"><enum>(e)</enum><header>Domestic production gross receipts</header><text>For purposes of this section—</text>
<paragraph id="HF8C1631F44363AA93AD9B09AC9D200A"><enum>(1)</enum><header>In general</header><text>The term <term>domestic production gross receipts</term> means the gross receipts of the taxpayer which are derived from—</text>
<subparagraph id="H10F16B00433BB786DA4AA997D25D7BE"><enum>(A)</enum><text>any sale, exchange, or other disposition of, or</text></subparagraph>
<subparagraph id="H413980564C549288841992AB54FCF9E"><enum>(B)</enum><text>any lease, rental or license of,</text></subparagraph><continuation-text continuation-text-level="paragraph">qualifying production property which was manufactured, produced, grown, or extracted in whole or in significant part by the taxpayer within the United States.</continuation-text></paragraph>
<paragraph id="HF5A2D13345FFEFA9982182A5EB9D6E3"><enum>(2)</enum><header>Special rule</header><text>The term <term>domestic production gross receipts</term> includes gross receipts of the taxpayer from the sale, exchange, or other disposition of replacement parts if—</text>
<subparagraph id="H6428BA3C40068600F3E0EB9EC63908D"><enum>(A)</enum><text>such parts are sold by the taxpayer as replacement parts for qualified production property produced or manufactured in whole or significant part by the taxpayer in the United States, and</text></subparagraph>
<subparagraph id="H0D662D8D48E239F4EDF2CEB586C429F"><enum>(B)</enum><text>the taxpayer (or a related party) owns the designs for such parts.</text></subparagraph></paragraph>
<paragraph id="H10DA73FC49E60DF9773BDBA2F6E7ECC"><enum>(3)</enum><header>Related party</header><text>The term <term>related party</term> means any corporation which is a member of the taxpayer’s expanded affiliated group.</text></paragraph></subsection>
<subsection id="HA7D2F39C404DBA6C5D091CA2FA39ADB"><enum>(f)</enum><header>Qualifying production property</header><text>For purposes of this section—</text>
<paragraph id="H20A0F91F4EA27F15B6440482B600DAB"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this paragraph, the term <term>qualifying production property</term> means—</text>
<subparagraph id="H390F0131478191FE2EC35DB2D877387"><enum>(A)</enum><text>any tangible personal property,</text></subparagraph>
<subparagraph id="HBF715538467F8D424CD53AB8F7F00B2"><enum>(B)</enum><text>any computer software, and</text></subparagraph>
<subparagraph id="H66EF596341F07AE479CA6087DCEFCF8"><enum>(C)</enum><text>any films, tapes, records, or similar reproductions.</text></subparagraph></paragraph>
<paragraph id="HD5EB5EEC47AEDA8EA629C689BF63C86"><enum>(2)</enum><header>Exclusions from qualifying production property</header><text>The term <term>qualifying production property</term> shall not include—</text>
<subparagraph id="H4DB3575145D019D516FBF2B7F6D5E3B"><enum>(A)</enum><text>consumable property that is sold, leased, or licensed by the taxpayer as an integral part of the provision of services,</text></subparagraph>
<subparagraph id="H678E49CD4851ED72DDEE6EBFE6DC184"><enum>(B)</enum><text>oil or gas (or any primary product thereof),</text></subparagraph>
<subparagraph id="H4CB3D01E4EC4193A62BCFF84CAF21AA"><enum>(C)</enum><text>electricity,</text></subparagraph>
<subparagraph id="HCC6488E7444F811BA7C7D4A7B77009F"><enum>(D)</enum><text>water supplied by pipeline to the consumer,</text></subparagraph>
<subparagraph id="H6BDD1FF74D48DD4A56C4A6B9B2BA093"><enum>(E)</enum><text>any unprocessed timber which is softwood,</text></subparagraph>
<subparagraph id="HD57414004A3D05B42F30FA8FA007179"><enum>(F)</enum><text>utility services, or</text></subparagraph>
<subparagraph id="H407793954ED102AAE35775B2A8625A4"><enum>(G)</enum><text>any property (not described in paragraph (1)(B)) which is a film, tape, recording, book, magazine, newspaper, or similar property the market for which is primarily topical or otherwise essentially transitory in nature.</text></subparagraph><continuation-text continuation-text-level="paragraph">For purposes of subparagraph (E), the term <quote>unprocessed timber</quote> means any log, cant, or similar form of timber.</continuation-text></paragraph></subsection>
<subsection id="H9C5E8B9943699724B2D894BD57F52CC"><enum>(g)</enum><header>Domestic/Foreign fraction</header><text>For purposes of this section—</text>
<paragraph id="HD1DBD4C34E1439E200A5E7A87E12BB4"><enum>(1)</enum><header>In general</header><text>The term <term>domestic/foreign fraction</term> means a fraction—</text>
<subparagraph id="HD7962A234D88E672E901C7BBD76927B"><enum>(A)</enum><text>the numerator of which is the value of the domestic production of the taxpayer, and</text></subparagraph>
<subparagraph id="H4E15345C4ED06FE2AB3106A3FDDC7DB"><enum>(B)</enum><text>the denominator of which is the value of the worldwide production of the taxpayer.</text></subparagraph></paragraph>
<paragraph id="H033EB40544E728CFEB812497D3A87A9"><enum>(2)</enum><header>Value of domestic production</header><text>The value of domestic production is the excess of—</text>
<subparagraph id="HE473469C49A12F43A97DD998DC44DA5"><enum>(A)</enum><text>the domestic production gross receipts, over</text></subparagraph>
<subparagraph id="H8898DCA442B90E4A21B558A2AF4BE62"><enum>(B)</enum><text>the cost of purchased inputs allocable to such receipts that are deductible under this chapter for the taxable year.</text></subparagraph></paragraph>
<paragraph id="HFD00752E4880AD06568EBDA01FDBDCD"><enum>(3)</enum><header>Purchased inputs</header>
<subparagraph id="HA6EB54A04D0B5B81913E09A355B577C"><enum>(A)</enum><header>In general</header><text>Purchased inputs are any of the following items acquired by purchase:</text>
<clause id="H178EA4524706ED3BD79F8D90A10010C"><enum>(i)</enum><text>Services (other than services of employees) used in manufacture, production, growth, or extraction activities.</text></clause>
<clause id="HEAEDFFBB4AE2A9A3D03FD98FD778F3E"><enum>(ii)</enum><text>Items consumed in connection with such activities.</text></clause>
<clause id="H3B43360546079F9DE209AB821013FAF"><enum>(iii)</enum><text>Items incorporated as part of the property being manufactured, produced, grown, or extracted.</text></clause></subparagraph>
<subparagraph id="H6C68AB5F42308514F28F3C9FFAA7D67"><enum>(B)</enum><header>Special rule</header><text>Rules similar to the rules of subsection (d)(3) shall apply for purposes of this subsection.</text></subparagraph></paragraph>
<paragraph id="HBEEED5D64F830F4C4A7F5A9AE5F4900"><enum>(4)</enum><header>Value of worldwide production</header>
<subparagraph id="H866964854BDD0469D3372CB0FF11D9F"><enum>(A)</enum><header>In general</header><text>The value of worldwide production shall be determined under the principles of paragraph (2), except that—</text>
<clause id="H312F8B4541605FBA4B2A09A6F816CC6"><enum>(i)</enum><text>worldwide production gross receipts shall be taken into account, and</text></clause>
<clause id="HE8F276E149F61ADABC234191E2941EA"><enum>(ii)</enum><text>paragraph (3)(B) shall not apply.</text></clause></subparagraph>
<subparagraph id="H034F432E48DC922D3751D39E30BEFBF"><enum>(B)</enum><header>Worldwide production gross receipts</header><text>The worldwide production gross receipts is the amount that would be determined under subsection (e) if such subsection were applied without any reference to the United States.</text></subparagraph></paragraph>
<paragraph id="H4A21C83A4765819750CF3389D24F3C7"><enum>(5)</enum><header>Special rule for affiliated groups</header>
<subparagraph id="HE7DACB4343A59E8A82F7F7B6E465EDE"><enum>(A)</enum><header>In general</header><text>In the case of a taxpayer that is a member of an expanded affiliated group, the domestic/foreign fraction shall be the amount determined under the preceding provisions of this subsection by treating all members of such group as a single corporation.</text></subparagraph>
<subparagraph id="H7D52293A468D5DDDDC30789F12F618B"><enum>(B)</enum><header>Expanded affiliated group</header><text>The term <term>expanded affiliated group</term> means an affiliated group as defined in section 1504(a), determined—</text>
<clause id="HC36873504CFE4540DFF23E8B90E2DD6"><enum>(i)</enum><text>by substituting <quote>50 percent</quote> for <quote>80 percent</quote> each place it appears, and</text></clause>
<clause id="HB6992F484C5E9F450C47DB89BA5316F"><enum>(ii)</enum><text>without regard to paragraphs (2), (3), and (4) of section 1504(b).</text></clause></subparagraph></paragraph></subsection>
<subsection id="H38D701DB4E794ED54645EEA8BBC1E27"><enum>(h)</enum><header>Definitions and special rules</header>
<paragraph id="H9916FEB947BA8D4636E5AFB6D75F85B"><enum>(1)</enum><header>United States</header><text>For purposes of this section, the term <term>United States</term> includes the Commonwealth of Puerto Rico and any other possession of the United States.</text></paragraph>
<paragraph id="H60311FC7499AA574FC2FD3AB75E3061"><enum>(2)</enum><header>Special rule for partnerships</header><text>For purposes of this section, a corporation’s distributive share of any partnership item shall be taken into account as if directly realized by the corporation.</text></paragraph>
<paragraph id="H074474C746BC197A2756CCBFE71E81C"><enum>(3)</enum><header>Coordination with minimum tax</header><text>The deduction under this section shall be allowed for purposes of the tax imposed by section 55; except that for purposes of section 55, alternative minimum taxable income shall be taken into account in determining the deduction under this section.</text></paragraph>
<paragraph id="HEE19A58F42B95701AAB01CB474CCCA8"><enum>(4)</enum><header>Ordering rule</header><text>The amount of any other deduction allowable under this chapter shall be determined as if this section had not been enacted.</text></paragraph>
<paragraph id="H46E43920445D1E141EF4B2AC7B70ECE"><enum>(5)</enum><header>Coordination with transition rules</header><text>For purposes of this section—</text>
<subparagraph id="H8CF1BF4B4411C4C0AF5191BAB8CD1D1"><enum>(A)</enum><text>domestic production gross receipts shall not include gross receipts from any transaction if the binding contract transition relief of section 2(c)(2) of the Job Protection Act of 2003 applies to such transaction, and</text></subparagraph>
<subparagraph id="H41BEC8474626A596E653B09C9F2FF22"><enum>(B)</enum><text>any deduction allowed under section 2(e) of such Act shall be disregarded in determining the portion of the taxable income which is attributable to domestic production gross receipts.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H1157F96E41F6176AB49A3DBEB3A3CC7"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for part VIII of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item:</text>
<quoted-block style="USC" id="H9446380D426F667E46F61B84EFEBB06">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 250. Income attributable to domestic production activities</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H666F281144BFCC82E17B5C9FE485E06"><enum>(c)</enum><header>Effective date</header>
<paragraph id="HE982530449974D7342D9519109FEB1E"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to taxable years beginning after 2005.</text></paragraph>
<paragraph id="H112B099DC1D64EB1BA6469F0C6E626B1"><enum>(2)</enum><header>Application of section 15</header><text>Section 15 of the Internal revenue Code of 1986 shall apply to the amendments made to this section as if they were changes in a rate of tax.</text></paragraph> </subsection></section>
<enum>VI</enum><header>Buy American provisions</header>
<section id="HBF8FCFF89C4349F4834CC9CFCF527062"><enum>601.</enum><header>Requirements for waivers</header>
<subsection id="HD682FC07ECC540F4004199DD69480025"><enum>(a)</enum><header>In general</header><text>Section 2 of the Buy American Act (<external-xref legal-doc="usc" parsable-cite="usc/41/10a">41 U.S.C. 10a</external-xref>) is amended—</text>
<paragraph id="HA09E86CF7F5C47F1994753E8B9000021"><enum>(1)</enum><text>by striking <quote>Notwithstanding</quote> and inserting the following: </text>
<quoted-block style="OLC" id="H301FF394BF8E4F378538D1F05B6CCB5F" display-inline="no-display-inline">
<subsection id="HC278E0F61B0E451498783B0800E28901"><enum>(a)</enum><header>In general</header><text>Notwithstanding</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="H13359554E7994AF8AF09EF93CDDE6317"><enum>(2)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" id="H1AB57A4D5145444B84D50025AB1678F" display-inline="no-display-inline">
<subsection id="H65EE188EFA95441ABEE8EBB7F4F926F8"><enum>(b)</enum><header>Special rules</header><text>The following rules shall apply in carrying out the provisions of subsection (a): </text>
<paragraph id="H26A793D5AB0D4488B3CAF0F8F40053BD"><enum>(1)</enum><header>Public interest waiver</header><text>A determination that it is not in the public interest to enter into a contract in accordance with this Act may not be made after a notice of solicitation of offers for the contract is published in accordance with section 18 of the Office of Federal Procurement Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/41/416">41 U.S.C. 416</external-xref>) and section 8(e) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(e)</external-xref>).</text></paragraph>
<paragraph id="H3A299DAC7E5F434EB0AE3340007B006"><enum>(2)</enum><header>Domestic bidder</header><text>A Federal agency entering into a contract shall give preference to a company submitting an offer on the contract that manufactures in the United States the article, material, or supply for which the offer is solicited, if—</text>
<subparagraph id="H5F0BD2EAFA1E4093A2AA00A1A49B8399"><enum>(A)</enum><text>that company's offer is substantially the same as an offer made by a company that does not manufacture the article, material, or supply in the United States; or </text></subparagraph>
<subparagraph id="HD8F4E53CB03844EDB605489316C7D792"><enum>(B)</enum><text>that company is the only company that manufactures in the United States the article, material, or supply for which the offer is solicited. </text></subparagraph></paragraph>
<paragraph id="HFDA54518666B4C8FBFB3A63A1090713"><enum>(3)</enum><header>Use outside the United States</header><text></text>
<subparagraph id="H3A593210D40C4C89BA713C09EF9413FC"><enum>(A)</enum><header>In general</header><text>Subsection (a) shall apply without regard to whether the articles, materials, or supplies to be acquired are for use outside the United States if the articles, materials, or supplies are not needed on an urgent basis or if they are acquired on a regular basis. </text></subparagraph>
<subparagraph id="H7D7D1D5FF8374DD79B46A8E254C855DC"><enum>(B)</enum><header>Cost analysis</header><text>In any case where the articles, materials, or supplies are to be acquired for use outside the United States and are not needed on an urgent basis, before entering into a contract an analysis shall be made of the difference in the cost for acquiring the articles, materials, or supplies from a company manufacturing the articles, materials, or supplies in the United States (including the cost of shipping) and the cost for acquiring the articles, materials, or supplies from a company manufacturing the articles, materials, or supplies outside the United States (including the cost of shipping).</text></subparagraph></paragraph>
<paragraph id="HDB823FBAD7104505AC5F9B55E6C1CE0"><enum>(4)</enum><header>Domestic availability</header><text>The head of a Federal agency may not make a determination under subsection (a) that an article, material, or supply is not mined, produced, or manufactured, as the case may be, in the United States in sufficient and reasonably available commercial quantities and of satisfactory quality, unless the head of the agency has conducted a study and, on the basis of such study, determined that—</text>
<subparagraph id="H381390C5EDDB4C7400E711B2CF8056BA"><enum>(A)</enum><text>domestic production cannot be initiated to meet the procurement needs; and</text></subparagraph>
<subparagraph id="H7C02720C11294F92895F25CEB04E021"><enum>(B)</enum><text>a comparable article, material, or supply is not available from a company in the United States.</text></subparagraph></paragraph></subsection>
<subsection id="H30E5BF8570BF4303BEC287361FFA01BD"><enum>(c)</enum><header>Reports</header><text></text>
<paragraph id="HFEBF12F6FCA94F0E888781FD011523FC"><enum>(1)</enum><header>In general</header><text>Not later than 60 days after the end of each fiscal year, the head of each Federal agency shall submit to Congress a report on the amount of the acquisitions made by the agency from entities that manufacture the articles, materials, or supplies outside the United States in that fiscal year. </text></paragraph>
<paragraph id="HD7E649D6E07E4DFBBD877D8F48B2CAB"><enum>(2)</enum><header>Content of report</header><text>The report required by paragraph (1) shall separately indicate the following information:</text>
<subparagraph id="H61306EC5003C465A9B0074FB7DBFCECD"><enum>(A)</enum><text>The dollar value of any articles, materials, or supplies for which this Act was waived.</text></subparagraph>
<subparagraph id="H76E45B949D1347429F768BB7EBF429A6"><enum>(B)</enum><text>An itemized list of all waivers granted with respect to such articles, materials, or supplies under this Act.</text></subparagraph>
<subparagraph id="HA0FE792ED8FA4137A9E3B7E008BC1B"><enum>(C)</enum><text>A list of all articles, materials, and supplies acquired, their source, and the amount of the acquisitions. </text></subparagraph></paragraph>
<paragraph id="HFBF0CD54E5C342528BC9D21EC4594279"><enum>(3)</enum><header>Public availability</header><text>The head of each Federal agency submitting a report under paragraph (1) shall make the report publicly available by posting on an Internet website.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H73424B7D955644B98DFB2EFCCE3FCFF0"><enum>(b)</enum><header>Definitions</header><text>Section 1 of the Buy American Act (<external-xref legal-doc="usc" parsable-cite="usc/41/10c">41 U.S.C. 10c</external-xref>) is amended—</text>
<paragraph id="HF7783C67817A497C9DA954961011D449"><enum>(1)</enum><text>by striking subsection (c) and inserting the following: </text>
<quoted-block style="OLC" id="H1118055FA5F24416AD748C3EE9D7004F" display-inline="no-display-inline">
<subsection id="HC81744E1990049B8B56103003ECBB85E"><enum>(c)</enum><header>Federal agency</header><text>The term <quote>Federal agency</quote> means any executive agency (as defined in section 4(1) of the Federal Procurement Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/41/403">41 U.S.C. 403(1)</external-xref>)) or any establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, and the Architect of the Capitol and activities under the Architect's direction).</text></subsection>
<subsection id="H158C2AD123E641828792E6A9882ED8C6"><enum>(d)</enum><header>Substantially all</header><text>Articles, materials, or supplies shall be treated as made substantially all from articles, materials, or supplies mined, produced, or manufactured, as the case may be, in the United States, if the cost of the domestic components of such articles, materials, or supplies exceeds 75 percent.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H185A205A611F4247B6F5047600FFB68C"><enum>(c)</enum><header>Conforming amendments</header><text></text>
<paragraph id="H64AA294437E14FCF8ECFD401436538F2"><enum>(1)</enum><text>Section 2 of the Buy American Act (<external-xref legal-doc="usc" parsable-cite="usc/41/10a">41 U.S.C. 10a</external-xref>) is amended by striking <quote>department or independent establishment</quote> and inserting <quote>Federal agency</quote>. </text></paragraph>
<paragraph id="HCA066160DD29409A9921D1327FD1385F"><enum>(2)</enum><text>Section 3 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/41/10b">41 U.S.C. 10b</external-xref>) is amended—</text>
<subparagraph id="H543FC30F0903423DA55F53BB924C3496"><enum>(A)</enum><text>by striking <quote>department or independent establishment</quote> in subsection (a), and inserting <quote>Federal agency</quote>; and</text></subparagraph>
<subparagraph id="H35FAA6EEDF5C4625AF62DCF712119700"><enum>(B)</enum><text>by striking <quote>department, bureau, agency, or independent establishment</quote> in subsection (b) and inserting <quote>Federal agency</quote>. </text></subparagraph></paragraph>
<paragraph id="H9003B5BB6B464E42B9B5F4F2CAE62E57"><enum>(3)</enum><text>Section 633 of the National Military Establishment Appropriations Act, 1950 (<external-xref legal-doc="usc" parsable-cite="usc/41/10d">41 U.S.C. 10d</external-xref>) is amended by striking <quote>department or independent establishment</quote> and inserting <quote>Federal agency</quote>. </text></paragraph></subsection></section>
<section id="HD9405E0BFFC84AC297A646A20975A401"><enum>602.</enum><header>GAO Report and recommendations</header>
<subsection id="H7078DA8872CA4EACBA19577F34C35843"><enum>(a)</enum><header>Scope of waivers</header><text>Not later than 6 months after the date of enactment of this title, the Comptroller General of the United States shall report to Congress recommendations for determining, for purposes of applying the waiver provision of section 2(a) of the Buy American Act—</text>
<paragraph id="H2993C127D9F141C9A2489D7F3128CEE4"><enum>(1)</enum><text>unreasonable cost; and </text></paragraph>
<paragraph id="H56F6DE73605646C1927494B2F0E0413B"><enum>(2)</enum><text>inconsistent with the public interest.</text></paragraph><continuation-text>The report shall include recommendations for a statutory definition of unreasonable cost and standards for determining inconsistency with the public interest.</continuation-text></subsection>
<subsection id="H765FF13DED0442E883B6B68CEE3F756"><enum>(b)</enum><header>Waiver procedures</header><text>The report described in subsection (a) shall also include recommendations for establishing procedures for applying the waiver provisions of the Buy American Act that can be consistently applied. </text></subsection></section>
<section id="HE332AAF4F9444801BD55F94C5CCCAADD"><enum>603.</enum><header>Dual Use technologies</header><text display-inline="no-display-inline">The head of a Federal agency (as defined in section 1(c) of the Buy American Act (as amended by section 601) may not enter into a contract, nor permit a subcontract under a contract of the Federal agency, with a foreign entity that involves giving the foreign entity plans, manuals, or other information that would facilitate the manufacture of a dual-use item on the Commerce Control List unless approval for providing such plans, manuals, or information has been obtained in accordance with the provisions of the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) and the Export Administration Regulations (15 C.F.R. part 730 et seq.)</text></section>
<enum>VII</enum><header>Establishment of Congressional Trade Office</header>
<section section-type="section-one" id="HB942A36B45A86FA7D61D98A2FD73FC7"><enum>701.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following findings:</text>
<paragraph id="H1C984DD94BB3A3D4D57163BAC46646F"><enum>(1)</enum><text>Congress has responsibility under the Constitution for international commerce.</text></paragraph>
<paragraph id="H31E22387436A7E647E2F2592C31E3EC"><enum>(2)</enum><text>Congressional oversight of trade policy has often been hampered by a lack of resources.</text></paragraph>
<paragraph id="HDFC7DEDC47FDED49183C6D90E79AE32"><enum>(3)</enum><text>The United States has entered into numerous trade agreements with foreign trading partners, including bilateral, regional, and multilateral agreements.</text></paragraph>
<paragraph id="H798A03C643684BB9FEE282AD41AD59B"><enum>(4)</enum><text>The purposes of the trade agreements are—</text>
<subparagraph id="HC3A11FF04FCEFD7EB691F3A8C2D19EF"><enum>(A)</enum><text>to achieve a more open world trading system which provides mutually advantageous market opportunities for trade between the United States and foreign countries;</text></subparagraph>
<subparagraph id="HB3818EF84850C05BB91135A499DD00A"><enum>(B)</enum><text>to facilitate the opening of foreign country markets to exports of the United States and other countries by eliminating trade barriers and increasing the access of United States industry and the industry of other countries to such markets; and</text></subparagraph>
<subparagraph id="H381059724EEE7B68BC52AFB4A0BF88A"><enum>(C)</enum><text>to reduce diversion of third country exports to the United States because of restricted market access in foreign countries.</text></subparagraph></paragraph>
<paragraph id="H6C8B591F4F5E5F78EEE8E78400DD6B7"><enum>(5)</enum><text>Foreign country performance under certain agreements has been less than contemplated, and in some cases rises to the level of noncompliance.</text></paragraph>
<paragraph id="H225F04F941C9AE2546C5CA9BD3CFFEB"><enum>(6)</enum><text>The credibility of, and support for, the United States Government’s trade policy is, to a significant extent, a function of the belief that trade agreements made are trade agreements enforced.</text></paragraph>
<paragraph id="H9F47E83049B5D6B8A2A07A82FE1B46A"><enum>(7)</enum><text>The accession of the People’s Republic of China to the World Trade Organization will create unprecedented challenges and it is important to the world trading system that China comply with the numerous and significant commitments China makes as part of the accession process. Congress must play a key role in ensuring full and continuous monitoring of the People’s Republic of China’s compliance with its commitments.</text></paragraph></section>
<section id="HC4532090478417BC2545729E3980BFC"><enum>702.</enum><header>Establishment of Office</header>
<subsection id="HC670464C4969C6B9E508D29B12B15B8"><enum>(a)</enum><header>In general</header><text>There is established an office in Congress to be known as the Congressional Trade Office (in this title referred to as the <quote>Office</quote>).</text></subsection>
<subsection id="H646427F74F62C60909BC0BADE6ECB08"><enum>(b)</enum><header>Purposes</header><text>The purposes of the Office are as follows:</text>
<paragraph id="HE90935BB4FEF4A73B0F856B9184D73F"><enum>(1)</enum><text>To reassert the constitutional responsibility of Congress with respect to international trade.</text></paragraph>
<paragraph id="HD9F6BD4B4176C2A4D5A2A6BDE01F500"><enum>(2)</enum><text>To provide Congress, through the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, with additional independent, nonpartisan, neutral trade expertise.</text></paragraph>
<paragraph id="H1B9F4F1F424D53377B6E7EAF76C8E4B"><enum>(3)</enum><text>To assist Congress in providing more effective and active oversight of trade policy.</text></paragraph>
<paragraph id="HAD914E224A6EB9508C9AEA8100A91C0"><enum>(4)</enum><text>To assist Congress in providing to the executive branch more effective direction on trade policy.</text></paragraph>
<paragraph id="HB3E82A114749214558EF63B32BE659D"><enum>(5)</enum><text>To provide Congress with long-term, institutional memory on trade issues.</text></paragraph>
<paragraph id="HEF0CA6AC4ADC6E7CA06D5D85EA29D90"><enum>(6)</enum><text>To provide Congress with more analytical capability on trade issues.</text></paragraph>
<paragraph id="H5200C0CE4BED17AAD3BDA5BF71E6931"><enum>(7)</enum><text>To advise relevant committees on the impact of trade negotiations, including past, ongoing, and future negotiations, with respect to the areas of jurisdiction of the respective committees.</text></paragraph></subsection>
<subsection id="H3025A67949B67B9F6F4E968CA45D500"><enum>(c)</enum><header>Functions</header><text>The functions of the Office are as follows:</text>
<paragraph id="H6600A6174E8548B861FD8F89ADCDACE"><enum>(1)</enum><header>Assistance to Congress</header><text>To provide the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representative and any other appropriate committee of Congress or joint committee of Congress information which will assist the committees in the discharge of the matters within their jurisdiction.</text></paragraph>
<paragraph id="HBBA64731449723A684A72DBDAFB15AE"><enum>(2)</enum><header>Monitor compliance</header><text>To monitor compliance with major bilateral, regional, and multilateral trade agreements by—</text>
<subparagraph id="H5A21C81F451ECE3D37649197DDF22FF"><enum>(A)</enum><text>consulting with the affected industries and interested parties;</text></subparagraph>
<subparagraph id="HC2011844446F638B7E69E6A9936B2DA"><enum>(B)</enum><text>analyzing the success of those agreements based on commercial results;</text></subparagraph>
<subparagraph id="H8FCBC6B94AED2BCDC2F86DB1F1B800C"><enum>(C)</enum><text>recommending actions, including legislative action, necessary to ensure that foreign countries that have made commitments through those agreements with the United States fully abide by their commitments;</text></subparagraph>
<subparagraph id="H79DF3D5543AF4EB2739AF5AD91AB48F"><enum>(D)</enum><text>annually assessing the extent to which those agreements comply with environmental goals; and</text></subparagraph>
<subparagraph id="H1EE7ACE143F86E0BF8AA048AD6E634B"><enum>(E)</enum><text>annually assessing the extent to which those agreements comply with labor goals.</text></subparagraph></paragraph>
<paragraph id="HD9EAF44C4B10B7DE982214B35929AC8"><enum>(3)</enum><header>Analysis</header>
<subparagraph id="H4299AF734741C104F0F038A8A4CEAD4"><enum>(A)</enum><header>In general</header><text>To perform the following analyses:</text>
<clause id="HEB5C7E2246368CCE11EEC495B7D0071"><enum>(i)</enum><text>Not later than 60 days after the date the National Trade Estimates report is delivered to Congress each year, analyze the major outstanding trade barriers based on cost to the United States economy.</text></clause>
<clause id="HF814CF3A46B050C88F35B2A7B9FA210"><enum>(ii)</enum><text>Not later than 60 days after the date the Trade Policy Agenda is delivered to Congress each year, analyze the Administration’s Agenda, including alternative goals, strategies, and tactics, as appropriate.</text></clause>
<clause id="H6854A5724125C2477AE8C68C216FDE9"><enum>(iii)</enum><text>Analyze the trade accounts quarterly, including the global current account, global trade account, and key bilateral trade accounts.</text></clause></subparagraph>
<subparagraph id="HF1BF57CD434047DDFC3481938F1DCA7"><enum>(B)</enum><header>Analysis requested by committee</header><text>To perform one or more of the following analyses as directed by the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives:</text>
<clause id="H0B0992344F46354212C30F8078CD673"><enum>(i)</enum><text>Analyze proposed trade legislation.</text></clause>
<clause id="H303BCE474B00B90099C5BB90A3BE884"><enum>(ii)</enum><text>Analyze proposed trade agreements, including agreements that do not require implementing legislation.</text></clause>
<clause id="H59D27E574EC16E73CE8B6686B3B36A5"><enum>(iii)</enum><text>Analyze the impact of the Administration’s trade policy and actions, including assessing the Administration’s decisions for not accepting unfair trade practices cases.</text></clause></subparagraph></paragraph>
<paragraph id="H2B50945946E90F92E48FB886305900F"><enum>(4)</enum><header>Dispute settlement deliberations</header><text>To perform the following functions with respect to dispute resolution:</text>
<subparagraph id="H49A99B944061CA2922354AB3D4B3EDA"><enum>(A)</enum><text>Participate as observers on the United States delegation at dispute settlement panel meetings of the World Trade Organization.</text></subparagraph>
<subparagraph id="H782D4DAA4223E4ED16C1B7B6D8E48DE"><enum>(B)</enum><text>Evaluate each World Trade Organization decision with respect to which the United States is a participant. In any case in which the United States does not prevail, evaluate the decision and in any case in which the United States does prevail, measure the commercial results of that decision.</text></subparagraph>
<subparagraph id="H74DA7E1B435AD900F6FFE2B4EFCE9BC"><enum>(C)</enum><text>Evaluate each dispute resolution proceeding under the North American Free Trade Agreement. In any case in which the United States does not prevail, evaluate the decision and in any case in which the United States does prevail, measure the commercial results of that decision.</text></subparagraph>
<subparagraph id="H3265285C4A1C2EDBDAFFDBABB53905B"><enum>(D)</enum><text>Participate as observers in other dispute settlement proceedings that the Chairman and Ranking Member of the Committee on Finance and the Chairman and Ranking Member of the Committee on Ways and Means deem appropriate.</text></subparagraph></paragraph>
<paragraph id="H5C8696FA4AECC31B637AE8A35400BEF"><enum>(5)</enum><header>Participation in trade negotiations</header><text>To participate as observers in selected bilateral, regional, and multilateral trade negotiations.</text></paragraph>
<paragraph id="H0C69DAFC4D9C836D22C00A8566EFE7C"><enum>(6)</enum><header>Other functions of the Office</header>
<subparagraph id="H89A9DE214F12E09A11DCBFB5DC889CA"><enum>(A)</enum><text>To provide the Committee on Finance and the Committee on Ways and Means with quarterly reports regarding the activities of the Office.</text></subparagraph>
<subparagraph id="HF9BF99FC4226C6F120DAC29341B3B31"><enum>(B)</enum><text>To be available for consultation with congressional committees on trade-related legislation.</text></subparagraph>
<subparagraph id="H9D5A9BFE433FAC5B6C47E8903C87DF5"><enum>(C)</enum><text>To receive and review classified information and participate in classified briefings in the same manner as the staff of the Committee on Finance and the Committee on Ways and Means.</text></subparagraph>
<subparagraph id="H3E4DC31B426393212AFEEF98E129D0B"><enum>(D)</enum><text>To consult nongovernmental experts and utilize nongovernmental resources.</text></subparagraph>
<subparagraph id="H966CD8DC4E8F4F6092A240B8FBF6048"><enum>(E)</enum><text>To perform such other functions as the Chairman and Ranking Member of the Committee on Finance and the Chairman and Ranking Member of the Committee on Ways and Means may request.</text></subparagraph></paragraph></subsection>
<subsection id="H7C1AF0F443DC89F7F018B4A7DEA0075"><enum>(d)</enum><header>Director and staff</header>
<paragraph id="H28E9ED5B4DA6A92A87D19F8CE987842"><enum>(1)</enum><header>Director</header>
<subparagraph id="H3CA19DF74A661230C29634A7D1B9DAB"><enum>(A)</enum><header>In general</header><text>The Office shall be headed by a Director. The Director shall be appointed by the Speaker of the House of Representatives and the President pro tempore of the Senate after considering the recommendations of the Chairman and Ranking Member of the Committee on Finance of the Senate and the Chairman and Ranking Member of the Committee on Ways and Means of the House of Representatives. The Director shall be chosen without regard to political affiliation and solely on the basis of the Director’s expertise and fitness to perform the duties of the Director.</text></subparagraph>
<subparagraph id="H45B5F6164B8312C5C9872C8AB79EDDF"><enum>(B)</enum><header>Term</header><text>The term of office of the Director shall be 5 years and the Director may be reappointed for subsequent terms.</text></subparagraph>
<subparagraph id="H137A7932445FE221201C47B30020E4C"><enum>(C)</enum><header>Vacancy</header><text>Any individual appointed to fill a vacancy prior to the expiration of a term shall serve only for the unexpired portion of that term.</text></subparagraph>
<subparagraph id="H2DD315AF4D8A7023A9BA9A853F5CBE7"><enum>(D)</enum><header>Removal</header><text>The Director may be removed by either House by resolution.</text></subparagraph>
<subparagraph id="H7A32ADF34972270A4DE19A9FEB5FAAD"><enum>(E)</enum><header>Compensation</header><text>The Director shall receive compensation at a per annum gross rate equal to the rate of basic pay, as in effect from time to time, for level III of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5314">section 5314</external-xref> of title 5, United States Code.</text></subparagraph></paragraph>
<paragraph id="HAC5949E84230A27A1E350688D744CC3"><enum>(2)</enum><header>Staff</header>
<subparagraph id="H16B3FC3D43E7963C50F79DB200B00BE"><enum>(A)</enum><header>In general</header><text>The Director shall appoint and fix the compensation of such personnel as may be necessary to carry out the duties and functions of the Office. All personnel shall be appointed without regard to political affiliation and solely on the basis of their fitness to perform their duties. The personnel of the Office shall consist of individuals with expertise in international trade, including expertise in economics, trade law, various industrial sectors, and various geographical regions.</text></subparagraph>
<subparagraph id="HCBAB4CAB454F971AE8389EAFB6DBE96"><enum>(B)</enum><header>Benefits</header><text>For purposes of pay (other than the pay of the Director) and employment, benefits, rights, and privileges, all personnel of the Office shall be treated as if they were employees of the House of Representatives.</text></subparagraph></paragraph>
<paragraph id="HCCD93D0C48582FBD8C8E7CAEDAAD7EA"><enum>(3)</enum><header>Experts and consultants</header><text>In carrying out the duties and functions of the Office, the Director may procure the temporary (not to exceed 1 year) or intermittent services of experts or consultants or organizations thereof by contract as independent contractors, or, in the case of individual experts or consultants, by employment at rates of pay not in excess of the daily equivalent of the highest rate of basic pay payable under the General Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5332">section 5332</external-xref> of title 5, United States Code.</text></paragraph>
<paragraph id="HC18C10564EFBECA11DB0E6AAF9DA2A1"><enum>(4)</enum><header>Relationship to executive branch</header><text>The Director is authorized to secure information, data, estimates, and statistics directly from the various departments, agencies, and establishments of the executive branch of Government and the regulatory agencies and commissions of the Government. All such departments, agencies, establishments, and regulatory agencies and commissions shall furnish the Director any available material which the Director determines to be necessary in the performance of his or her duties and functions (other than material the disclosure of which would be a violation of law). The Director is also authorized, upon agreement with the head of any such department, agency, establishment, or regulatory agency or commission, to utilize its services and facilities with or without reimbursement; and the head of each such department, agency, establishment, or regulatory agency or commission is authorized to provide the Office such services and facilities.</text></paragraph>
<paragraph id="HB1FB4FBD4ECA13E6A6D82E88C850A28"><enum>(5)</enum><header>Relationship to other agencies of Congress</header><text>In carrying out the duties and functions of the Office, and for the purpose of coordinating the operations of the Office with those of other congressional agencies with a view to utilizing most effectively the information, services, and capabilities of all such agencies in carrying out the various responsibilities assigned to each, the Director is authorized to obtain information, data, estimates, and statistics developed by the General Accounting Office, the Library of Congress, and other offices of Congress, and (upon agreement with them) to utilize their services and facilities with or without reimbursement. The Comptroller General, the Librarian of Congress, and the head of other offices of Congress are authorized to provide the Office with the information, data estimates, statistics, services, and facilities referred to in the preceding sentence.</text></paragraph></subsection></section>
<section id="H0423FAC547E2F48B75EE309D8C9EFDD"><enum>703.</enum><header>Public access to data</header>
<subsection id="H2833C814452A1FB388AF84A9698EB5E"><enum>(a)</enum><header>Right to copy</header><text>Except as provided in subsections (b) and (c), the Director shall make all information, data, estimates, and statistics obtained under this title available for public copying during normal business hours, subject to reasonable rules and regulations, and shall to the extent practicable, at the request of any person, furnish a copy of any such information, data, estimates, or statistics upon payment by such person of the cost of making and furnishing such copy.</text></subsection>
<subsection id="H67BC7F16477216AEEDB633BEE6DEEE0"><enum>(b)</enum><header>Exceptions</header><text>Subsection (a) of this section shall not apply to information, data, estimates, and statistics—</text>
<paragraph id="H6A436EDB401EAD80F40CBE9F2BAD4F7"><enum>(1)</enum><text>which are specifically exempted from disclosure by law; or</text></paragraph>
<paragraph id="HC62B10E8462B9DD7D17BA38B5EA9BCC"><enum>(2)</enum><text>which the Director determines will disclose—</text>
<subparagraph id="H690CCB024164B2B447E410958CCA108"><enum>(A)</enum><text>matters necessary to be kept secret in the interests of national defense or the confidential conduct of the foreign relations of the United States;</text></subparagraph>
<subparagraph id="HBDD0F58140B9BE78B2E11FBEF98FFB9"><enum>(B)</enum><text>information relating to trade secrets or financial or commercial information pertaining specifically to a given person if the information has been obtained by the Government on a confidential basis, other than through an application by such person for a specific financial or other benefit, and is required to be kept secret in order to prevent undue injury to the competitive position of such person; or</text></subparagraph>
<subparagraph id="H7D3C42644CCD431B750FCBBFCCEADE6"><enum>(C)</enum><text>personnel or medical data or similar data the disclosure of which would constitute a clearly unwarranted invasion of personal privacy;</text></subparagraph></paragraph><continuation-text continuation-text-level="subsection">unless the portions containing such matters, information, or data have been excised.</continuation-text></subsection>
<subsection id="H28162C7648BA8D5F5286479FFF862E4"><enum>(c)</enum><header>Information obtained for committees and members</header><text>Subsection (a) of this section shall apply to any information, data, estimates, and statistics obtained at the request of any committee, joint committee, or Member unless such committee, joint committee, or Member of Congress has instructed the Director not to make such information, data, estimates, or statistics available for public copying.</text></subsection></section>
<section id="H086324344CEFC1EA361A078D1EA9400"><enum>704.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Office for each fiscal year such sums as may be necessary to enable it to carry out its duties and functions. Until sums are first appropriated pursuant to the preceding sentence, for a period not to exceed 12 months following the effective date of this title, the expenses of the Office shall be paid from the contingent fund of the Senate, in accordance with the provisions of the paragraph relating to contingent funds under the heading <quote>UNDER LEGISLATIVE</quote> in the Act of October 2, 1888 (25 Stat. 546; <external-xref legal-doc="usc" parsable-cite="usc/2/68">2 U.S.C. 68</external-xref>), and upon vouchers approved by the Director.</text></section>