[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4759 Reported in House (RH)]






                                                 Union Calendar No. 357
108th CONGRESS
  2d Session
                                H. R. 4759

                          [Report No. 108-597]

     To implement the United States-Australia Free Trade Agreement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 6, 2004

 Mr. DeLay (for himself and Mr. Rangel) (both by request): introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

                             July 12, 2004

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
     To implement the United States-Australia Free Trade Agreement.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States-
Australia Free Trade Agreement Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the Agreement. 
Sec. 102. Relationship of the Agreement to United States and State law. 

Sec. 103. Implementing actions in anticipation of entry into force and 
                            initial regulations. 
Sec. 104. Consultation and layover provisions for, and effective date 
                            of, proclaimed actions. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Effective dates; effect of termination. 
                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications. 
Sec. 202. Additional duties on certain agricultural goods. 
Sec. 203. Rules of origin.
Sec. 204. Customs user fees. 
Sec. 205. Disclosure of incorrect information. 
Sec. 206. Enforcement relating to trade in textile and apparel goods. 
Sec. 207. Regulations. 
                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions. 
     Subtitle A--Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief. 
Sec. 312. Commission action on petition. 
Sec. 313. Provision of relief. 
Sec. 314. Termination of relief authority. 
Sec. 315. Compensation authority. 
Sec. 316. Confidential business information. 
           Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief. 
Sec. 322. Determination and provision of relief. 
Sec. 323. Period of relief. 
Sec. 324. Articles exempt from relief. 
Sec. 325. Rate after termination of import relief. 
Sec. 326. Termination of relief authority. 
Sec. 327. Compensation authority. 
Sec. 328. Business confidential information. 
       Subtitle C--Cases Under Title II of the Trade Act of 1974

Sec. 331. Findings and action on goods from Australia. 
                         TITLE IV--PROCUREMENT

Sec. 401. Eligible products. 

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to approve and implement the Free Trade Agreement 
        between the United States and Australia, entered into under the 
        authority of section 2103(b) of the Bipartisan Trade Promotion 
        Authority Act of 2002 (19 U.S.C. 3803(b));
            (2) to strengthen and develop economic relations between 
        the United States and Australia for their mutual benefit;
            (3) to establish free trade between the 2 nations through 
        the reduction and elimination of barriers to trade in goods and 
        services and to investment; and
            (4) to lay the foundation for further cooperation to expand 
        and enhance the benefits of such Agreement.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agreement.--The term ``Agreement'' means the United 
        States-Australia Free Trade Agreement approved by Congress 
        under section 101(a)(1).
            (2) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (3) Textile or apparel good.--The term ``textile or apparel 
        good'' means a good listed in the Annex to the Agreement on 
        Textiles and Clothing referred to in section 101(d)(4) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.

    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority 
Act of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 
(19 U.S.C. 2191), Congress approves--
            (1) the United States-Australia Free Trade Agreement 
        entered into on May 18, 2004, with the Government of Australia 
        and submitted to Congress on July 6, 2004; and
            (2) the statement of administrative action proposed to 
        implement the Agreement that was submitted to Congress on July 
        6, 2004.
    (b) Conditions for Entry Into Force of the Agreement.--At such time 
as the President determines that Australia has taken measures necessary 
to bring it into compliance with those provisions of the Agreement that 
are to take effect on the date on which the Agreement enters into 
force, the President is authorized to exchange notes with the 
Government of Australia providing for the entry into force, on or after 
January 1, 2005, of the Agreement with respect to the United States.

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.

    (a) Relationship of Agreement to United States Law.--
            (1) United states law to prevail in conflict.--No provision 
        of the Agreement, nor the application of any such provision to 
        any person or circumstance, which is inconsistent with any law 
        of the United States shall have effect.
            (2) Construction.--Nothing in this Act shall be construed--
                    (A) to amend or modify any law of the United 
                States, or
                    (B) to limit any authority conferred under any law 
                of the United States,
        unless specifically provided for in this Act.
    (b) Relationship of Agreement to State Law.--
            (1) Legal challenge.--No State law, or the application 
        thereof, may be declared invalid as to any person or 
        circumstance on the ground that the provision or application is 
        inconsistent with the Agreement, except in an action brought by 
        the United States for the purpose of declaring such law or 
        application invalid.
            (2) Definition of state law.--For purposes of this 
        subsection, the term ``State law'' includes--
                    (A) any law of a political subdivision of a State; 
                and
                    (B) any State law regulating or taxing the business 
                of insurance.
    (c) Effect of Agreement With Respect to Private Remedies.--No 
person other than the United States--
            (1) shall have any cause of action or defense under the 
        Agreement or by virtue of congressional approval thereof; or
            (2) may challenge, in any action brought under any 
        provision of law, any action or inaction by any department, 
        agency, or other instrumentality of the United States, any 
        State, or any political subdivision of a State, on the ground 
        that such action or inaction is inconsistent with the 
        Agreement.

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND 
              INITIAL REGULATIONS.

    (a) Implementing Actions.--
            (1) Proclamation authority.--After the date of the 
        enactment of this Act--
                    (A) the President may proclaim such actions, and
                    (B) other appropriate officers of the United States 
                Government may issue such regulations,
        as may be necessary to ensure that any provision of this Act, 
        or amendment made by this Act, that takes effect on the date 
        the Agreement enters into force is appropriately implemented on 
        such date, but no such proclamation or regulation may have an 
        effective date earlier than the date on which the Agreement 
        enters into force.
            (2) Effective date of certain proclaimed actions.--Any 
        action proclaimed by the President under the authority of this 
        Act that is not subject to the consultation and layover 
        provisions under section 104, may not take effect before the 
        15th day after the date on which the text of the proclamation 
        is published in the Federal Register.
            (3) Waiver of 15-day restriction.--The 15-day restriction 
        in paragraph (2) on the taking effect of proclaimed actions is 
        waived to the extent that the application of such restriction 
        would prevent the taking effect on the date the Agreement 
        enters into force of any action proclaimed under this section.
    (b) Initial Regulations.--Initial regulations necessary or 
appropriate to carry out the actions required by or authorized under 
this Act or proposed in the statement of administrative action 
submitted under section 101(a)(2) to implement the Agreement shall, to 
the maximum extent feasible, be issued within 1 year after the date on 
which the Agreement enters into force. In the case of any implementing 
action that takes effect on a date after the date on which the 
Agreement enters into force, initial regulations to carry out that 
action shall, to the maximum extent feasible, be issued within 1 year 
after such effective date.

SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE 
              OF, PROCLAIMED ACTIONS.

    If a provision of this Act provides that the implementation of an 
action by the President by proclamation is subject to the consultation 
and layover requirements of this section, such action may be proclaimed 
only if--
            (1) the President has obtained advice regarding the 
        proposed action from--
                    (A) the appropriate advisory committees established 
                under section 135 of the Trade Act of 1974 (19 U.S.C. 
                2155); and
                    (B) the United States International Trade 
                Commission;
            (2) the President has submitted a report to the Committee 
        on Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives that sets forth--
                    (A) the action proposed to be proclaimed and the 
                reasons therefor; and
                    (B) the advice obtained under paragraph (1);
            (3) a period of 60 calendar days, beginning on the first 
        day on which the requirements set forth in paragraphs (1) and 
        (2) have been met has expired; and
            (4) the President has consulted with such Committees 
        regarding the proposed action during the period referred to in 
        paragraph (3).

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

    (a) Establishment or Designation of Office.--The President is 
authorized to establish or designate within the Department of Commerce 
an office that shall be responsible for providing administrative 
assistance to panels established under chapter 21 of the Agreement. The 
office may not be considered to be an agency for purposes of section 
552 of title 5, United States Code.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 2004 to the 
Department of Commerce such sums as may be necessary for the 
establishment and operations of the office under subsection (a) and for 
the payment of the United States share of the expenses of panels 
established under chapter 21 of the Agreement.

SEC. 106. EFFECTIVE DATES; EFFECT OF TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the 
provisions of this Act and the amendments made by this Act take effect 
on the date on which the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on 
the date of the enactment of this Act.
    (c) Termination of the Agreement.--On the date on which the 
Agreement terminates, the provisions of this Act (other than this 
subsection) and the amendments made by this Act shall cease to be 
effective.

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--The 
President may proclaim--
            (1) such modifications or continuation of any duty,
            (2) such continuation of duty-free or excise treatment, or
            (3) such additional duties,
as the President determines to be necessary or appropriate to carry out 
or apply articles 2.3, 2.5, and 2.6, and Annex 2-B of the Agreement.
    (b) Other Tariff Modifications.--Subject to the consultation and 
layover provisions of section 104, the President may proclaim--
            (1) such modifications or continuation of any duty,
            (2) such modifications as the United States may agree to 
        with Australia regarding the staging of any duty treatment set 
        forth in Annex 2-B of the Agreement,
            (3) such continuation of duty-free or excise treatment, or
            (4) such additional duties,
as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Australia provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections 
(a) and (b), with respect to any good for which the base rate in the 
Schedule of the United States to Annex 2-B of the Agreement is a 
specific or compound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President determines to be 
equivalent to the base rate.

SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

    (a) General Provisions.--
            (1) Applicability of subsection.--This subsection applies 
        to additional duties assessed under subsections (b), (c), and 
        (d).
            (2) Applicable ntr (mfn) rate of duty.--For purposes of 
        subsections (b), (c), and (d), the term ``applicable NTR (MFN) 
        rate of duty'' means, with respect to a safeguard good, a rate 
        of duty that is the lesser of--
                    (A) the column 1 general rate of duty that would 
                have been imposed under the HTS on the same safeguard 
                good entered, without a claim for preferential 
                treatment, at the time the additional duty is imposed 
                under subsection (b), (c), or (d), as the case may be; 
                or
                    (B) the column 1 general rate of duty that would 
                have been imposed under the HTS on the same safeguard 
                good entered, without a claim for preferential 
                treatment, on December 31, 2004.
            (3) Schedule rate of duty.--For purposes of subsections (b) 
        and (c), the term ``schedule rate of duty'' means, with respect 
        to a safeguard good, the rate of duty for that good set out in 
        the Schedule of the United States to Annex 2-B of the 
        Agreement.
            (4) Safeguard good.--In this subsection, the term 
        ``safeguard good'' means--
                    (A) a horticulture safeguard good described 
                subsection (b)(1)(B); or
                    (B) a beef safeguard good described in subsection 
                (c)(1) or subsection (d)(1)(A).
            (5) Exceptions.--No additional duty shall be assessed on a 
        good under subsection (b), (c), or (d) if, at the time of 
        entry, the good is subject to import relief under--
                    (A) subtitle A of title III of this Act; or
                    (B) chapter 1 of title II of the Trade Act of 1974 
                (19 U.S.C. 2251 et seq.).
            (6) Termination.--The assessment of an additional duty on a 
        good under subsection (b) or (c), whichever is applicable, 
        shall cease to apply to that good on the date on which duty-
        free treatment must be provided to that good under the Schedule 
        of the United States to Annex 2-B of the Agreement.
            (7) Notice.--Not later than 60 days after the date on which 
        the Secretary of the Treasury assesses an additional duty on a 
        good under subsection (b), (c), or (d), the Secretary shall 
        notify the Government of Australia in writing of such action 
        and shall provide to that Government data supporting the 
        assessment of the additional duty.
    (b) Additional Duties on Horticulture Safeguard Goods.--
            (1) Definitions.--In this subsection:
                    (A)  F.O.B.--The term ``F.O.B.'' means free on 
                board, regardless of the mode of transportation, at the 
                point of direct shipment by the seller to the buyer.
                    (B) Horticulture safeguard good.--The term 
                ``horticulture safeguard good'' means a good--
                            (i) that qualifies as an originating good 
                        under section 203;
                            (ii) that is included in the United States 
                        Horticulture Safeguard List set forth in Annex 
                        3-A of the Agreement; and
                            (iii) for which a claim for preferential 
                        treatment under the Agreement has been made.
                    (C) Unit import price.--The ``unit import price'' 
                of a good means the price of the good determined on the 
                basis of the F.O.B. import price of the good, expressed 
                in either dollars per kilogram or dollars per liter, 
                whichever unit of measure is indicated for the good in 
                the United States Horticulture Safeguard List set forth 
                in Annex 3-A of the Agreement.
                    (D) Trigger price.--The ``trigger price'' for a 
                good is the trigger price indicated for that good in 
                the United States Horticulture Safeguard List set forth 
                in Annex 3-A of the Agreement or any amendment thereto.
            (2) Additional duties.--In addition to any duty proclaimed 
        under subsection (a) or (b) of section 201, and subject to 
        subsection (a) of this section, the Secretary of the Treasury 
        shall assess a duty on a horticulture safeguard good, in the 
        amount determined under paragraph (3), if the Secretary 
        determines that the unit import price of the good when it 
        enters the United States is less than the trigger price for 
        that good.
            (3) Calculation of additional duty.--The additional duty 
        assessed under this subsection on a horticulture safeguard good 
        shall be an amount determined in accordance with the following 
        table:

      

                         If the excess of the trigger price      The additional duty is an amount equal to:
                          over the unit import price is:
 
                         Not more than 10 percent of the         0.
                          trigger price........................
                         More than 10 percent but not more than  30 percent of the excess of the applicable NTR (MFN) rate of duty
                          40 percent of the trigger price......   over the schedule rate of duty.
                         More than 40 percent but not more than  50 percent of such excess.
                          60 percent of the trigger price......
                         More than 60 percent but not more than  70 percent of such excess.
                          75 percent of the trigger price......
                         More than 75 percent of the trigger     100 percent of such excess.
                          price................................
 

    (c) Additional Duties on Beef Safeguard Goods Based on Quantity of 
Imports.--
            (1) Definition.--In this subsection, the term ``beef 
        safeguard good'' means a good--
                    (A) that qualifies as an originating good under 
                section 203;
                    (B) that is listed in paragraph 3 of Annex I of the 
                General Notes to the Schedule of the United States to 
                Annex 2-B of the Agreement; and
                    (C) for which a claim for preferential treatment 
                under the Agreement has been made.
            (2) Additional duties.--In addition to any duty proclaimed 
        under subsection (a) or (b) of section 201, and subject to 
        subsection (a) of this section and paragraphs (4) and (5) of 
        this subsection, the Secretary of the Treasury shall assess a 
        duty, in the amount determined under paragraph (3), on a beef 
        safeguard good imported into the United States in a calendar 
        year if the Secretary determines that, prior to such 
        importation, the total volume of beef safeguard goods imported 
        into the United States in that calendar year is equal to or 
        greater than 110 percent of the volume set out for beef 
        safeguard goods in the corresponding year in the table 
        contained in paragraph 3(a) of Annex I of the General Notes to 
        the Schedule of the United States to Annex 2-B of the 
        Agreement. For purposes of this subsection, the years 1 through 
        19 set out in the table contained in paragraph 3(a) of such 
        Annex I correspond to the calendar years 2005 through 2023.
            (3) Calculation of additional duty.--The additional duty on 
        a beef safeguard good under this subsection shall be an amount 
        equal to 75 percent of the excess of the applicable NTR (MFN) 
        rate of duty over the schedule rate of duty.
            (4) Waiver.--
                    (A) In general.--The United States Trade 
                Representative is authorized to waive the application 
                of this subsection, if the Trade Representative 
                determines that extraordinary market conditions 
                demonstrate that the waiver would be in the national 
                interest of the United States, after the requirements 
                of subparagraph (B) are met.
                    (B) Notice and consultations.--Promptly after 
                receiving a request for a waiver of this subsection, 
                the Trade Representative shall notify the Committee on 
                Ways and Means of the House of Representatives and the 
                Committee on Finance of the Senate, and may make the 
                determination provided for in subparagraph (A) only 
                after consulting with--
                            (i) appropriate private sector advisory 
                        committees established under section 135 of the 
                        Trade Act of 1974 (19 U.S.C. 2155); and
                            (ii) the Committee on Ways and Means of the 
                        House of Representatives and the Committee on 
                        Finance of the Senate regarding--
                                    (I) the reasons supporting the 
                                determination to grant the waiver; and
                                    (II) the proposed scope and 
                                duration of the waiver.
                            (C) Notification of the secretary of the 
                        treasury and publication.--Upon granting a 
                        waiver under this paragraph, the Trade 
                        Representative shall promptly notify the 
                        Secretary of the Treasury of the period in 
                        which the waiver will be in effect, and shall 
                        publish notice of the waiver in the Federal 
                        Register.
            (5) Effective dates.--This subsection takes effect on 
        January 1, 2013, and shall not be effective after December 31, 
        2022.
    (d) Additional Duties on Beef Safeguard Goods Based on Price.--
            (1) Definitions.--In this subsection:
                    (A) Beef safeguard good.--The term ``beef safeguard 
                good'' means a good--
                            (i) that qualifies as an originating good 
                        under section 203;
                            (ii) that is classified under subheading 
                        0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 
                        0202.20.80, or 0202.30.80 of the HTS; and
                            (iii) for which a claim for preferential 
                        treatment under the Agreement has been made.
                    (B) Calendar quarter.--
                            (i) In general.--The term ``calendar 
                        quarter'' means any 3-month period beginning on 
                        January 1, April 1, July 1, or October 1 of a 
                        calendar year.
                            (ii) First calendar quarter.--The term 
                        ``first calendar quarter'' means the calendar 
                        quarter beginning on January 1.
                            (iii) Second calendar quarter.--The term 
                        ``second calendar quarter'' means the calendar 
                        quarter beginning on April 1.
                            (iv) Third calendar quarter.--The term 
                        ``third calendar quarter'' means the calendar 
                        quarter beginning on July 1.
                            (v) Fourth calendar quarter.--The term 
                        ``fourth calendar quarter'' means the calendar 
                        quarter beginning on October 1.
                    (C) Monthly average index price.--The term 
                ``monthly average index price'' means the simple 
                average, as determined by the Secretary of Agriculture, 
                for a calendar month of the daily average index prices 
                for Wholesale Boxed Beef Cut-Out Value Select 1-3 
                Central U.S. 600-750 lbs., or its equivalent, as such 
                simple average is reported by the Agricultural 
                Marketing Service of the Department of Agriculture in 
                Report LM-XB459 or any equivalent report.
                    (D) 24-month trigger price.--The term ``24-month 
                trigger price'' means, with respect to any calendar 
                month, the average of the monthly average index prices 
                for the 24 preceding calendar months, multiplied by 
                0.935.
            (2) Additional duties.--In addition to any duty proclaimed 
        under subsection (a) or (b) of section 201, and subject to 
        subsection (a) of this section and paragraphs (4) through (6) 
        of this subsection, the Secretary of the Treasury shall assess 
        a duty, in the amount determined under paragraph (3), on a beef 
        safeguard good imported into the United States if--
                    (A)(i) the good is imported in the first calendar 
                quarter, second calendar quarter, or third calendar 
                quarter of a calendar year; and
                    (ii) the monthly average index price, in any 2 
                calendar months of the preceding calendar quarter, is 
                less than the 24-month trigger price; or
                    (B)(i) the good is imported in the fourth calendar 
                quarter of a calendar year; and
                    (ii)(I) the monthly average index price, in any 2 
                calendar months of the preceding calendar quarter, is 
                less than the 24-month trigger price; or
                    (II) the monthly average index price, in any of the 
                4 calendar months preceding January 1 of the succeeding 
                calendar year, is less than the 24-month trigger price.
            (3) Calculation of additional duty.--The additional duty on 
        a beef safeguard good under this subsection shall be an amount 
        equal to 65 percent of the applicable NTR (MFN) rate of duty 
        for that good.
            (4) Limitation.--An additional duty shall be assessed under 
        this subsection on a beef safeguard good imported into the 
        United States in a calendar year only if, prior to the 
        importation of that good, the total quantity of beef safeguard 
        goods imported into the United States in that calendar year is 
        equal to or greater than the sum of--
                    (A) the quantity of goods of Australia eligible to 
                enter the United States in that year specified in 
                Additional United States Note 3 to Chapter 2 of the 
                HTS; and
                    (B)(i) in 2023, 70,420 metric tons; or
                    (ii) in 2024, and in each year thereafter, a 
                quantity that is 0.6 percent greater than the quantity 
                provided for in the preceding year under this 
                subparagraph.
            (5) Waiver.--
                    (A) In general.--The United States Trade 
                Representative is authorized to waive the application 
                of this subsection, if the Trade Representative 
                determines that extraordinary market conditions 
                demonstrate that the waiver would be in the national 
                interest of the United States, after the requirements 
                of subparagraph (B) are met.
                    (B) Notice and consultations.--Promptly after 
                receiving a request for a waiver of this subsection, 
                the Trade Representative shall notify the Committee on 
                Ways and Means of the House of Representatives and the 
                Committee on Finance of the Senate, and may make the 
                determination provided for in subparagraph (A) only 
                after consulting with--
                            (i) appropriate private sector advisory 
                        committees established under section 135 of the 
                        Trade Act of 1974 (19 U.S.C. 2155); and
                            (ii) the Committee on Ways and Means of the 
                        House of Representatives and the Committee on 
                        Finance of the Senate regarding--
                                    (I) the reasons supporting the 
                                determination to grant the waiver; and
                                    (II) the proposed scope and 
                                duration of the waiver.
                            (C) Notification of the secretary of the 
                        treasury and publication.--Upon granting a 
                        waiver under this paragraph, the Trade 
                        Representative shall promptly notify the 
                        Secretary of the Treasury of the period in 
                        which the waiver will be in effect, and shall 
                        publish notice of the waiver in the Federal 
                        Register.
            (6) Effective date.--This subsection takes effect on 
        January 1, 2023.

SEC. 203. RULES OF ORIGIN.

    (a) Application and Interpretation.--In this section:
            (1) Tariff classification.--The basis for any tariff 
        classification is the HTS.
            (2) Reference to hts.--Whenever in this section there is a 
        reference to a heading or subheading, such reference shall be a 
        reference to a heading or subheading of the HTS.
            (3) Cost or value.--Any cost or value referred to in this 
        section shall be recorded and maintained in accordance with the 
        generally accepted accounting principles applicable in the 
        territory of the country in which the good is produced (whether 
        Australia or the United States).
    (b) Originating Goods.--For purposes of this Act and for purposes 
of implementing the preferential treatment provided for under the 
Agreement, a good is an originating good if--
            (1) the good is a good wholly obtained or produced entirely 
        in the territory of Australia, the United States, or both;
            (2) the good--
                    (A) is produced entirely in the territory of 
                Australia, the United States, or both, and--
                            (i) each of the nonoriginating materials 
                        used in the production of the good undergoes an 
                        applicable change in tariff classification 
                        specified in Annex 4-A or Annex 5-A of the 
                        Agreement;
                            (ii) the good otherwise satisfies any 
                        applicable regional value-content requirement 
                        referred to in Annex 5-A of the Agreement; or
                            (iii) the good meets any other requirements 
                        specified in Annex 4-A or Annex 5-A of the 
                        Agreement; and
                    (B) the good satisfies all other applicable 
                requirements of this section;
            (3) the good is produced entirely in the territory of 
        Australia, the United States, or both, exclusively from 
        materials described in paragraph (1) or (2); or
            (4) the good otherwise qualifies as an originating good 
        under this section.
    (c) De Minimis Amounts of Nonoriginating Materials.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), a good that does not undergo a change in tariff 
        classification pursuant to Annex 5-A of the Agreement is an 
        originating good if--
                    (A) the value of all nonoriginating materials 
                that--
                            (i) are used in the production of the good, 
                        and
                            (ii) do not undergo the required change in 
                        tariff classification,
                does not exceed 10 percent of the adjusted value of the 
                good;
                    (B) the good meets all other applicable 
                requirements of this section; and
                    (C) the value of such nonoriginating materials is 
                included in the value of nonoriginating materials for 
                any applicable regional value-content requirement for 
                the good.
            (2) Exceptions.--Paragraph (1) does not apply to the 
        following:
                    (A) A nonoriginating material provided for in 
                chapter 4 of the HTS or in subheading 1901.90 that is 
                used in the production of a good provided for in 
chapter 4 of the HTS.
                    (B) A nonoriginating material provided for in 
                chapter 4 of the HTS or in subheading 1901.90 that is 
                used in the production of a good provided for in 
                subheading 1901.10, 1901.20, or 1901.90, heading 2105, 
                or subheading 2106.90, 2202.90, or 2309.90.
                    (C) A nonoriginating material provided for in 
                heading 0805 or any of subheadings 2009.11 through 
                2009.39 that is used in the production of a good 
                provided for in any of subheadings 2009.11 through 
                2009.39, or in subheading 2106.90 or 2202.90.
                    (D) A nonoriginating material provided for in 
                chapter 15 of the HTS that is used in the production of 
                a good provided for in any of headings 1501.00.00 
                through 1508, or in heading 1512, 1514, or 1515.
                    (E) A nonoriginating material provided for in 
                heading 1701 that is used in the production of a good 
                provided for in any of headings 1701 through 1703.
                    (F) A nonoriginating material provided for in 
                chapter 17 of the HTS or heading 1805.00.00 that is 
                used in the production of a good provided for in 
                subheading 1806.10.
                    (G) A nonoriginating material provided for in any 
                of headings 2203 through 2208 that is used in the 
                production of a good provided for in heading 2207 or 
                2208.
                    (H) A nonoriginating material used in the 
                production of a good provided for in any of chapters 1 
                through 21 of the HTS unless the nonoriginating 
                material is provided for in a different subheading than 
                the good for which origin is being determined under 
                this section.
            (3) Textile and apparel goods.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a textile or apparel good that is not an 
                originating good because certain fibers or yarns used 
                in the production of the component of the good that 
                determines the tariff classification of the good do not 
                undergo an applicable change in tariff classification 
                set out in Annex 4-A of the Agreement shall be 
                considered to be an originating good if the total 
                weight of all such fibers or yarns in that component is 
                not more than 7 percent of the total weight of that 
                component.
                    (B) Certain textile or apparel goods.--A textile or 
                apparel good containing elastomeric yarns in the 
                component of the good that determines the tariff 
                classification of the good shall be considered to be an 
                originating good only if such yarns are wholly formed 
                in the territory of Australia or the United States.
                    (C) Yarn, fabric, or fiber.--For purposes of this 
                paragraph, in the case of a textile or apparel good 
                that is a yarn, fabric, or group of fibers, the term 
                ``component of the good that determines the tariff 
                classification of the good'' means all of the fibers in 
                the yarn, fabric, or group of fibers.
    (d) Accumulation.--
            (1) Originating materials used in production of goods of 
        other country.--Originating materials from the territory of 
        Australia or the United States that are used in the production 
        of a good in the territory of the other country shall be 
        considered to originate in the territory of the other country.
            (2) Multiple procedures.--A good that is produced in the 
        territory of Australia, the United States, or both, by 1 or 
        more producers, is an originating good if the good satisfies 
        the requirements of subsection (b) and all other applicable 
        requirements of this section.
    (e) Regional Value-Content.--
            (1) In general.--For purposes of subsection (b)(2), the 
        regional value-content of a good referred to in Annex 5-A of 
        the Agreement, except for goods to which paragraph (4) applies, 
        shall be calculated by the importer, exporter, or producer of 
        the good, on the basis of the build-down method described in 
        paragraph (2) or the build-up method described in paragraph 
        (3).
            (2) Build-down method.--
                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                build-down method:

                                 av-vnm

                      rvc = -------- <greek-e> 100

                                   av

                    (B) Definitions.--In subparagraph (A):
                            (i) RVC.--The term ``RVC'' means the 
                        regional value-content of the good, expressed 
                        as a percentage.
                            (ii) AV.--The term ``AV'' means the 
                        adjusted value of the good.
                            (iii) VNM.--The term ``VNM'' means the 
                        value of nonoriginating materials that are 
                        acquired and used by the producer in the 
                        production of the good, but does not include 
                        the value of a material that is self-produced.
            (3) Build-up method.--
                    (A) In general.--The regional value-content of a 
                good may be calculated on the basis of the following 
                build-up method:

                                  vom

                      rvc = -------- <greek-e> 100

                                   av

                    (B) Definitions.--In subparagraph (A):
                            (i) RVC.--The term ``RVC'' means the 
                        regional value-content of the good, expressed 
                        as a percentage.
                            (ii) AV.--The term ``AV'' means the 
                        adjusted value of the good.
                            (iii) VOM.--The term ``VOM'' means the 
                        value of originating materials that are 
                        acquired or self-produced, and used by the 
                        producer in the production of the good.
            (4) Special rule for certain automotive goods.--
                    (A) In general.--For purposes of subsection (b)(2), 
                the regional value-content of an automotive good 
                referred to in Annex 5-A of the Agreement shall be 
                calculated by the importer, exporter, or producer of 
                the good, on the basis of the following net cost 
                method:

                                 nc-vnm

                      rvc = -------- <greek-e> 100

                                   nc

                    (B) Definitions.--In subparagraph (A):
                            (i) Automotive good.--The term ``automotive 
                        good'' means a good provided for in any of 
                        subheadings 8407.31 through 8407.34, subheading 
                        8408.20, heading 8409, or in any of headings 
                        8701 through 8708.
                            (ii) RVC.--The term ``RVC'' means the 
                        regional value-content of the automotive good, 
                        expressed as a percentage.
                            (iii) NC.--The term ``NC'' means the net 
                        cost of the automotive good.
                            (iv) VNM.--The term ``VNM'' means the value 
                        of nonoriginating materials that are acquired 
                        and used by the producer in the production of 
                        the automotive good, but does not include the 
                        value of a material that is self-produced.
                    (C) Motor vehicles.--
                            (i) Basis of calculation.--For purposes of 
                        determining the regional value-content under 
                        subparagraph (A) for an automotive good that is 
                        a motor vehicle provided for in any of headings 
                        8701 through 8705, an importer, exporter, or 
                        producer may average the amounts calculated 
                        under the formula contained in subparagraph 
                        (A), over the producer's fiscal year--
                                    (I) with respect to all motor 
                                vehicles in any one of the categories 
                                described in clause (ii); or
                                    (II) with respect to all motor 
                                vehicles in any such category that are 
                                exported to the territory of the United 
                                States or Australia.
                            (ii) Categories.--A category is described 
                        in this clause if it--
                                    (I) is the same model line of motor 
                                vehicles, is in the same class of 
                                vehicles, and is produced in the same 
                                plant in the territory of Australia or 
                                the United States, as the good 
                                described in clause (i) for which 
                                regional value-content is being 
                                calculated;
                                    (II) is the same class of motor 
                                vehicles, and is produced in the same 
                                plant in the territory of Australia or 
                                the United States, as the good 
                                described in clause (i) for which 
                                regional value-content is being 
                                calculated; or
                                    (III) is the same model line of 
                                motor vehicles produced in either the 
                                territory of Australia or the United 
                                States, as the good described in clause 
                                (i) for which regional value-content is 
                                being calculated.
                    (D) Other automotive goods.--For purposes of 
                determining the regional value-content under 
                subparagraph (A) for automotive goods provided for in 
                any of subheadings 8407.31 through 8407.34, in 
                subheading 8408.20, or in heading 8409, 8706, 8707, 
or 8708, that are produced in the same plant, an importer, exporter, or 
producer may--
                            (i) average the amounts calculated under 
                        the formula contained in subparagraph (A) 
                        over--
                                    (I) the fiscal year of the motor 
                                vehicle producer to whom the automotive 
                                goods are sold,
                                    (II) any quarter or month, or
                                    (III) its own fiscal year,
                        if the goods were produced during the fiscal 
                        year, quarter, or month that is the basis for 
                        the calculation;
                            (ii) determine the average referred to in 
                        clause (i) separately for such goods sold to 
                        one or more motor vehicle producers; or
                            (iii) make a separate determination under 
                        clause (i) or (ii) for automotive goods that 
                        are exported to the territory of the United 
                        States or Australia.
                    (E) Calculating net cost.--Consistent with the 
                provisions regarding allocation of costs set out in 
                generally accepted accounting principles, the net cost 
                of the automotive good under subparagraph (B) shall be 
                calculated by--
                            (i) calculating the total cost incurred 
                        with respect to all goods produced by the 
                        producer of the automotive good, subtracting 
                        any sales promotion, marketing and after-sales 
                        service costs, royalties, shipping and packing 
                        costs, and nonallowable interest costs that are 
                        included in the total cost of all such goods, 
                        and then reasonably allocating the resulting 
                        net cost of those goods to the automotive good;
                            (ii) calculating the total cost incurred 
                        with respect to all goods produced by that 
                        producer, reasonably allocating the total cost 
                        to the automotive good, and then subtracting 
                        any sales promotion, marketing and after-sales 
                        service costs, royalties, shipping and packing 
                        costs, and nonallowable interest costs that are 
                        included in the portion of the total cost 
                        allocated to the automotive good; or
                            (iii) reasonably allocating each cost that 
                        forms part of the total cost incurred with 
                        respect to the automotive good so that the 
                        aggregate of these costs does not include any 
                        sales promotion, marketing and after-sales 
                        service costs, royalties, shipping and packing 
                        costs, or nonallowable interest costs.
    (f) Value of Materials.--
            (1) In general.--For the purpose of calculating the 
        regional value-content of a good under subsection (e), and for 
        purposes of applying the de minimis rules under subsection (c), 
        the value of a material is--
                    (A) in the case of a material that is imported by 
                the producer of the good, the adjusted value of the 
                material;
                    (B) in the case of a material acquired in the 
                territory in which the good is produced, the value, 
                determined in accordance with Articles 1 through 8, 
                article 15, and the corresponding interpretive notes of 
                the Agreement on Implementation of Article VII of the 
                General Agreement on Tariffs and Trade 1994 referred to 
                in section 101(d)(8) of the Uruguay Round Agreements 
                Act, as set forth in regulations promulgated by the 
                Secretary of the Treasury providing for the application 
                of such Articles in the absence of an importation; or
                    (C) in the case of a material that is self-
                produced, the sum of--
                            (i) all expenses incurred in the production 
                        of the material, including general expenses; 
                        and
                            (ii) an amount for profit equivalent to the 
                        profit added in the normal course of trade.
            (2) Further adjustments to the value of materials.--
                    (A) Originating material.--The following expenses, 
                if not included in the value of an originating material 
                calculated under paragraph (1), may be added to the 
                value of the originating material:
                            (i) The costs of freight, insurance, 
                        packing, and all other costs incurred in 
                        transporting the material within or between the 
                        territory of Australia, the United States, or 
                        both, to the location of the producer.
                            (ii) Duties, taxes, and customs brokerage 
                        fees on the material paid in the territory of 
                        Australia, the United States, or both, other 
                        than duties or taxes that are waived, refunded, 
                        refundable, or otherwise recoverable, including 
credit against duty or tax paid or payable.
                            (iii) The cost of waste and spoilage 
                        resulting from the use of the material in the 
                        production of the good, less the value of 
                        renewable scrap or byproducts.
                    (B) Nonoriginating material.--The following 
                expenses, if included in the value of a nonoriginating 
                material calculated under paragraph (1), may be 
                deducted from the value of the nonoriginating material:
                            (i) The costs of freight, insurance, 
                        packing, and all other costs incurred in 
                        transporting the material within or between the 
                        territory of Australia, the United States, or 
                        both, to the location of the producer.
                            (ii) Duties, taxes, and customs brokerage 
                        fees on the material paid in the territory of 
                        Australia, the United States, or both, other 
                        than duties or taxes that are waived, refunded, 
                        refundable, or otherwise recoverable, including 
                        credit against duty or tax paid or payable.
                            (iii) The cost of waste and spoilage 
                        resulting from the use of the material in the 
                        production of the good, less the value of 
                        renewable scrap or byproducts.
                            (iv) The cost of processing incurred in the 
                        territory of Australia, the United States, or 
                        both, in the production of the nonoriginating 
                        material.
                            (v) The cost of originating materials used 
                        in the production of the nonoriginating 
                        material in the territory of Australia, the 
                        United States, or both.
    (g) Accessories, Spare Parts, or Tools.--
            (1) In general.--Subject to paragraph (2), accessories, 
        spare parts, or tools delivered with a good that form part of 
        the good's standard accessories, spare parts, or tools shall--
                    (A) be treated as originating goods if the good is 
                an originating good; and
                    (B) be disregarded in determining whether all the 
                nonoriginating materials used in the production of the 
                good undergo the applicable change in tariff 
                classification set out in Annex 5-A of the Agreement.
            (2) Conditions.--Paragraph (1) shall apply only if--
                    (A) the accessories, spare parts, or tools are not 
                invoiced separately from the good;
                    (B) the quantities and value of the accessories, 
                spare parts, or tools are customary for the good; and
                    (C) if the good is subject to a regional value-
                content requirement, the value of the accessories, 
                spare parts, or tools is taken into account as 
                originating or nonoriginating materials, as the case 
                may be, in calculating the regional value-content of 
                the good.
    (h) Fungible Goods and Materials.--
            (1) In general.--
                    (A) Claim for preferential treatment.--A person 
                claiming that a fungible good or fungible material is 
                an originating good may base the claim either on the 
                physical segregation of the fungible good or fungible 
                material or by using an inventory management method 
                with respect to the fungible good or fungible material.
                    (B) Inventory management method.--In this 
                subsection, the term ``inventory management method'' 
                means--
                            (i) averaging;
                            (ii) ``last-in, first-out'';
                            (iii) ``first-in, first-out''; or
                            (iv) any other method--
                                    (I) recognized in the generally 
                                accepted accounting principles of the 
                                country in which the production is 
                                performed (whether Australia or the 
                                United States); or
                                    (II) otherwise accepted by that 
                                country.
            (2) Election of inventory method.--A person selecting an 
        inventory management method under paragraph (1) for a 
        particular fungible good or fungible material shall continue to 
        use that method for that fungible good or fungible material 
        throughout the fiscal year of that person.
    (i) Packaging Materials and Containers for Retail Sale.--Packaging 
materials and containers in which a good is packaged for retail sale, 
if classified with the good, shall be disregarded in determining 
whether all the nonoriginating materials used in the production of the 
good undergo the applicable change in tariff classification set out in 
Annex 4-A or Annex 5-A of the Agreement, and, if the good is subject to 
a regional value-content requirement, the value of such packaging 
materials and containers shall be taken into account as originating or 
nonoriginating materials, as the case may be, in calculating the 
regional value-content of the good.
    (j) Packing Materials and Containers for Shipment.--Packing 
materials and containers for shipment shall be disregarded in 
determining whether--
            (1) the nonoriginating materials used in the production of 
        a good undergo the applicable change in tariff classification 
        set out in Annex 4-A or Annex 5-A of the Agreement; and
            (2) the good satisfies a regional value-content 
        requirement.
    (k) Indirect Materials.--An indirect material shall be treated as 
an originating material without regard to where it is produced, and its 
value shall be the cost registered in the accounting records of the 
producer of the good.
    (l) Third Country Operations.--A good that has undergone production 
necessary to qualify as an originating good under subsection (b) shall 
not be considered to be an originating good if, subsequent to that 
production, the good undergoes further production or any other 
operation outside the territory of Australia or the United States, 
other than unloading, reloading, or any other operation necessary to 
preserve the good in good condition or to transport the good to the 
territory of Australia or the United States.
    (m) Textile and Apparel Goods Classifiable as Goods Put Up in 
Sets.--Notwithstanding the rules set forth in Annex 4-A of the 
Agreement, textile or apparel goods classifiable as goods put up in 
sets for retail sale as provided for in General Rule of Interpretation 
3 of the HTS shall not be considered to be originating goods unless 
each of the goods in the set is an originating good or the total value 
of the nonoriginating goods in the set does not exceed 10 percent of 
the value of the set determined for purposes of assessing customs 
duties.
    (n) Definitions.--In this section:
            (1) Adjusted value.--The term ``adjusted value'' means the 
        value determined under Articles 1 through 8, Article 15, and 
        the corresponding interpretive notes of the Agreement on 
        Implementation of Article VII of the General Agreement on 
        Tariffs and Trade 1994 referred to in section 101(d)(8) of the 
        Uruguay Round Agreements Act, adjusted to exclude any costs, 
        charges, or expenses incurred for transportation, insurance, 
and related services incident to the international shipment of the good 
from the country of exportation to the place of importation.
            (2) Class of motor vehicles.--The term ``class of motor 
        vehicles'' means any one of the following categories of motor 
        vehicles:
                    (A) Motor vehicles provided for in subheading 
                8701.20, 8704.10, 8704.22, 8704.23, 8704.32, or 
                8704.90, or heading 8705 or 8706, or motor vehicles for 
                the transport of 16 or more persons provided for in 
                subheading 8702.10 or 8702.90.
                    (B) Motor vehicles provided for in subheading 
                8701.10 or any of subheadings 8701.30 through 8701.90.
                    (C) Motor vehicles for the transport of 15 or fewer 
                persons provided for in subheading 8702.10 or 8702.90, 
                or motor vehicles provided for in subheading 8704.21 or 
                8704.31.
                    (D) Motor vehicles provided for in any of 
                subheadings 8703.21 through 8703.90.
            (3) Fungible good or fungible material.--The term 
        ``fungible good'' or ``fungible material'' means a good or 
        material, as the case may be, that is interchangeable with 
        another good or material for commercial purposes and the 
        properties of which are essentially identical to such other 
        good or material.
            (4) Generally accepted accounting principles.--The term 
        ``generally accepted accounting principles'' means the 
        recognized consensus or substantial authoritative support in 
        the territory of Australia or the United States, as the case 
        may be, with respect to the recording of revenues, expenses, 
        costs, assets, and liabilities, the disclosure of information, 
        and the preparation of financial statements. These standards 
        may encompass broad guidelines of general application as well 
        as detailed standards, practices, and procedures.
            (5) Good wholly obtained or produced entirely in the 
        territory of australia, the united states, or both.--The term 
        ``good wholly obtained or produced entirely in the territory of 
        Australia, the United States, or both'' means--
                    (A) a mineral good extracted in the territory of 
                Australia, the United States, or both;
                    (B) a vegetable good, as such goods are provided 
                for in the HTS, harvested in the territory of 
                Australia, the United States, or both;
                    (C) a live animal born and raised in the territory 
                of Australia, the United States, or both;
                    (D) a good obtained from hunting, trapping, 
                fishing, or aquaculture conducted in the territory of 
                Australia, the United States, or both;
                    (E) a good (fish, shellfish, and other marine life) 
                taken from the sea by vessels registered or recorded 
                with Australia or the United States and flying the flag 
                of that country;
                    (F) a good produced exclusively from products 
                referred to in subparagraph (E) on board factory ships 
                registered or recorded with Australia or the United 
                States and flying the flag of that country;
                    (G) a good taken by Australia or the United States 
                or a person of Australia or the United States from the 
                seabed or beneath the seabed outside territorial 
                waters, if Australia or the United States has rights to 
                exploit such seabed;
                    (H) a good taken from outer space, if such good is 
                obtained by Australia or the United States or a person 
                of Australia or the United States and not processed in 
                the territory of a country other than Australia or the 
                United States;
                    (I) waste and scrap derived from--
                            (i) production in the territory of 
                        Australia, the United States, or both; or
                            (ii) used goods collected in the territory 
                        of Australia, the United States, or both, if 
                        such goods are fit only for the recovery of raw 
                        materials;
                    (J) a recovered good derived in the territory of 
                Australia or the United States from goods that have 
                passed their life expectancy, or are no longer usable 
                due to defects, and utilized in the territory of that 
                country in the production of remanufactured goods; or
                    (K) a good produced in the territory of Australia, 
                the United States, or both, exclusively--
                            (i) from goods referred to in any of 
                        subparagraphs (A) through (I), or
                            (ii) from the derivatives of goods referred 
                        to in clause (i),
                at any stage of production.
            (6) Indirect material.--The term ``indirect material'' 
        means a good used in the production, testing, or inspection of 
        a good but not physically incorporated into the good, or a good 
        used in the maintenance of buildings or the operation of 
        equipment associated with the production of a good, including--
                    (A) fuel and energy;
                    (B) tools, dies, and molds;
                    (C) spare parts and materials used in the 
                maintenance of equipment or buildings;
                    (D) lubricants, greases, compounding materials, and 
                other materials used in production or used to operate 
                equipment or buildings;
                    (E) gloves, glasses, footwear, clothing, safety 
                equipment, and supplies;
                    (F) equipment, devices, and supplies used for 
                testing or inspecting the good;
                    (G) catalysts and solvents; and
                    (H) any other goods that are not incorporated into 
                the good but the use of which in the production of the 
                good can reasonably be demonstrated to be a part of 
                that production.
            (7) Material.--The term ``material'' means a good that is 
        used in the production of another good.
            (8) Material that is self-produced.--The term ``material 
        that is self-produced'' means an originating material that is 
        produced by a producer of a good and used in the production of 
        that good.
            (9) Model line.--The term ``model line'' means a group of 
        motor vehicles having the same platform or model name.
            (10) Nonallowable interest costs.--The term ``nonallowable 
        interest costs'' means interest costs incurred by a producer 
        that exceed 700 basis points above the applicable official 
        interest rate for comparable maturities of the country (whether 
        Australia or the United States).
            (11) Nonoriginating material.--The term ``nonoriginating 
        material'' means a material that does not qualify as 
        originating under this section.
            (12) Preferential treatment.--The term ``preferential 
        treatment'' means the customs duty rate, and the treatment 
        under article 2.12 of the Agreement, that are applicable to an 
        originating good pursuant to the Agreement.
            (13) Producer.--The term ``producer'' means a person who 
        engages in the production of a good in the territory of 
        Australia or the United States.
            (14) Production.--The term ``production'' means growing, 
        raising, mining, harvesting, fishing, trapping, hunting, 
        manufacturing, processing, assembling, or disassembling a good.
            (15) Reasonably allocate.--The term ``reasonably allocate'' 
        means to apportion in a manner that would be appropriate under 
        generally accepted accounting principles.
            (16) Recovered goods.--The term ``recovered goods'' means 
        materials in the form of individual parts that result from--
                    (A) the complete disassembly of goods which have 
                passed their life expectancy, or are no longer usable 
                due to defects, into individual parts; and
                    (B) the cleaning, inspecting, or testing, or other 
                processing that is necessary for improvement to sound 
                working condition of such individual parts.
            (17) Remanufactured good.--The term ``remanufactured good'' 
        means an industrial good that is assembled in the territory of 
        Australia or the United States, that is classified under 
        chapter 84, 85, or 87 of the HTS or heading 9026, 9031, or 
        9032, other than a good classified under heading 8418 or 8516 
        or any of headings 8701 through 8706, and that--
                    (A) is entirely or partially comprised of recovered 
                goods;
                    (B) has a similar life expectancy to, and meets the 
                same performance standards as, a like good that is new; 
                and
                    (C) enjoys a factory warranty similar to a like 
                good that is new.
            (18) Total cost.--The term ``total cost'' means all product 
        costs, period costs, and other costs for a good incurred in the 
        territory of Australia, the United States, or both.
            (19) Used.--The term ``used'' means used or consumed in the 
        production of goods.
    (o) Presidential Proclamation Authority.--
            (1) In general.--The President is authorized to proclaim, 
        as part of the HTS--
                    (A) the provisions set out in Annex 4-A and Annex 
                5-A of the Agreement; and
                    (B) any additional subordinate category necessary 
                to carry out this title consistent with the Agreement.
            (2) Modifications.--
                    (A) In general.--Subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim modifications to the provisions proclaimed 
                under the authority of paragraph (1)(A), other than 
                provisions of chapters 50 through 63 of the HTS, as 
                included in Annex 4-A of the Agreement.
                    (B) Additional proclamations.--Notwithstanding 
                subparagraph (A), and subject to the consultation and 
                layover provisions of section 104, the President may 
                proclaim--
                            (i) modifications to the provisions 
                        proclaimed under the authority of paragraph 
                        (1)(A) as are necessary to implement an 
                        agreement with Australia pursuant to article 
                        4.2.5 of the Agreement; and
                            (ii) before the end of the 1-year period 
                        beginning on the date of the enactment of this 
                        Act, modifications to correct any 
                        typographical, clerical, or other 
                        nonsubstantive technical error regarding the 
                        provisions of chapters 50 through 63 of the 
                        HTS, as included in Annex 4-A of the Agreement.

SEC. 204. CUSTOMS USER FEES.

    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph 
(13) the following:
    ``(14) No fee may be charged under subsection (a) (9) or (10) with 
respect to goods that qualify as originating goods under section 203 of 
the United States-Australia Free Trade Agreement Implementation Act. 
Any service for which an exemption from such fee is provided by reason 
of this paragraph may not be funded with money contained in the Customs 
User Fee Account.''.

SEC. 205. DISCLOSURE OF INCORRECT INFORMATION.

    Section 592(c) of the Tariff Act of 1930 (19 U.S.C. 1592(c)) is 
amended--
            (1) by redesignating paragraph (8) as paragraph (9); and
            (2) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) Prior disclosure regarding claims under the united 
        states-australia free trade agreement.--
                    ``(A) In general.--An importer shall not be subject 
                to penalties under subsection (a) for making an 
                incorrect claim that a good qualifies as an originating 
                good under section 203 of the United States-Australia 
                Free Trade Agreement Implementation Act if the 
                importer, in accordance with regulations issued by the 
                Secretary of the Treasury, voluntarily and promptly 
                makes a corrected declaration and pays any duties 
                owing.
                    ``(B) Time periods for making corrections.--In the 
                regulations referred to in subparagraph (A), the 
                Secretary of the Treasury is authorized to prescribe 
                time periods for making a corrected declaration and 
                paying duties owing under subparagraph (A), if such 
                periods are not shorter than 1 year following the date 
                on which the importer makes the incorrect claim.''.

SEC. 206. ENFORCEMENT RELATING TO TRADE IN TEXTILE AND APPAREL GOODS.

    (a) Action During Verification.--
            (1) In general.--If the Secretary of the Treasury requests 
        the Government of Australia to conduct a verification pursuant 
        to article 4.3 of the Agreement for purposes of making a 
        determination under paragraph (2), the President may direct the 
        Secretary to take appropriate action described in subsection 
        (b) while the verification is being conducted.
    (2) Determination.--A determination under this paragraph is a 
determination--
                    (A) that an exporter or producer in Australia is 
                complying with applicable customs laws, regulations, 
                procedures, requirements, or practices affecting trade 
                in textile or apparel goods; or
                    (B) that a claim that a textile or apparel good 
                exported or produced by such exporter or producer--
                            (i) qualifies as an originating good under 
                        section 203 of this Act; or
                            (ii) is a good of Australia,
                is accurate.
    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
            (1) suspension of liquidation of the entry of any textile 
        or apparel good exported or produced by the person that is the 
        subject of a verification under subsection (a)(1) regarding 
        compliance described in subsection (a)(2)(A), in a case in 
        which the request for verification was based on a reasonable 
        suspicion of unlawful activity related to such goods; and
            (2) suspension of liquidation of the entry of a textile or 
        apparel good for which a claim has been made that is the 
        subject of a verification under subsection (a)(1) regarding a 
        claim described in subsection (a)(2)(B).
    (c) Action When Information is Insufficient.--If the Secretary of 
the Treasury determines that the information obtained within 12 months 
after making a request for a verification under subsection (a)(1) is 
insufficient to make a determination under subsection (a)(2), the 
President may direct the Secretary to take appropriate action described 
in subsection (d) until such time as the Secretary receives information 
sufficient to make a determination under subsection (a)(2) or until 
such earlier date as the President may direct.
    (d) Appropriate Action Described.--Appropriate action referred to 
in subsection (c) includes--
            (1) publication of the name and address of the person that 
        is the subject of the verification;
            (2) denial of preferential tariff treatment under the 
        Agreement to--
                    (A) any textile or apparel good exported or 
                produced by the person that is the subject of a 
                verification under subsection (a)(1) regarding 
                compliance described in subsection (a)(2)(A); or
                    (B) a textile or apparel good for which a claim has 
                been made that is the subject of a verification under 
                subsection (a)(1) regarding a claim described in 
                subsection (a)(2)(B); and
            (3) denial of entry into the United States of--
                    (A) any textile or apparel good exported or 
                produced by the person that is the subject of a 
                verification under subsection (a)(1) regarding 
                compliance described in subsection (a)(2)(A); or
                    (B) a textile or apparel good for which a claim has 
                been made that is the subject of a verification under 
                subsection (a)(1) regarding a claim described in 
                subsection (a)(2)(B).

SEC. 207. REGULATIONS.

    The Secretary of the Treasury shall prescribe such regulations as 
may be necessary to carry out--
            (1) subsections (a) through (n) of section 203 and section 
        204;
            (2) amendments to existing law made by the sections 
        referred to in paragraph (1); and
            (3) proclamations issued under section 203(o).

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

     As used in this title:
            (1) Australian article.--The term ``Australian article'' 
        means an article that qualifies as an originating good under 
        section 203(b) of this Act.
            (2) Australian textile or apparel article.--The term 
        ``Australian textile or apparel article'' means an article--
                    (A) that is listed in the Annex to the Agreement on 
                Textiles and Clothing referred to in section 101(d)(4) 
                of the Uruguay Round Agreements Act (19 U.S.C. 
                3511(d)(4)); and
                    (B) that is an Australian article.
            (3) Commission.--The term ``Commission'' means the United 
        States International Trade Commission.

     Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--
            (1) In general.--A petition requesting action under this 
        subtitle for the purpose of adjusting to the obligations of the 
        United States under the Agreement may be filed with the 
        Commission by an entity, including a trade association, firm, 
        certified or recognized union, or group of workers, that is 
        representative of an industry. The Commission shall transmit a 
copy of any petition filed under this subsection to the United States 
Trade Representative.
            (2) Provisional relief.--An entity filing a petition under 
        this subsection may request that provisional relief be provided 
        as if the petition had been filed under section 202(a) of the 
        Trade Act of 1974 (19 U.S.C. 2252(a)).
            (3) Critical circumstances.--Any allegation that critical 
        circumstances exist shall be included in the petition.
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the Commission, unless subsection (d) applies, 
shall promptly initiate an investigation to determine whether, as a 
result of the reduction or elimination of a duty provided for under the 
Agreement, an Australian article is being imported into the United 
States in such increased quantities, in absolute terms or relative to 
domestic production, and under such conditions that imports of the 
Australian article constitute a substantial cause of serious injury or 
threat thereof to the domestic industry producing an article that is 
like, or directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
            (1) Paragraphs (1)(B) and (3) of subsection (b).
            (2) Subsection (c).
            (3) Subsection (d).
            (4) Subsection (i).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Australian article if, 
after the date on which the Agreement enters into force, import relief 
has been provided with respect to that Australian article under this 
subtitle.

SEC. 312. COMMISSION ACTION ON PETITION.

    (a) Determination.--Not later than 120 days (180 days if critical 
circumstances have been alleged) after the date on which an 
investigation is initiated under section 311(b) with respect to a 
petition, the Commission shall make the determination required under 
that section.
    (b) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under this 
section as if such determinations and findings were made under section 
202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination 
Affirmative.--If the determination made by the Commission under 
subsection (a) with respect to imports of an article is affirmative, or 
if the President may consider a determination of the Commission to be 
an affirmative determination as provided for under paragraph (1) of 
section 330(d) of the Tariff Act of 1930) (19 U.S.C. 1330(d)), the 
Commission shall find, and recommend to the President in the report 
required under subsection (d), the amount of import relief that is 
necessary to remedy or prevent the injury found by the Commission in 
the determination and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition. The 
import relief recommended by the Commission under this subsection shall 
be limited to that described in section 313(c). Only those members of 
the Commission who voted in the affirmative under subsection (a) are 
eligible to vote on the proposed action to remedy or prevent the injury 
found by the Commission. Members of the Commission who did not vote in 
the affirmative may submit, in the report required under subsection 
(d), separate views regarding what action, if any, should be taken to 
remedy or prevent the injury.
    (d) Report to President.--Not later than the date that is 30 days 
after the date on which a determination is made under subsection (a) 
with respect to an investigation, the Commission shall submit to the 
President a report that includes--
            (1) the determination made under subsection (a) and an 
        explanation of the basis for the determination;
            (2) if the determination under subsection (a) is 
        affirmative, any findings and recommendations for import relief 
        made under subsection (c) and an explanation of the basis for 
        each recommendation; and
            (3) any dissenting or separate views by members of the 
        Commission regarding the determination and recommendation 
        referred to in paragraphs (1) and (2).
    (e) Public Notice.--Upon submitting a report to the President under 
subsection (d), the Commission shall promptly make public such report 
(with the exception of information which the Commission determines to 
be confidential) and shall cause a summary thereof to be published in 
the Federal Register.

SEC. 313. PROVISION OF RELIEF.

    (a) In General.--Not later than the date that is 30 days after the 
date on which the President receives the report of the Commission in 
which the Commission's determination under section 312(a) is 
affirmative, or which contains a determination under section 312(a) 
that the President considers to be affirmative under paragraph (1) of 
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 
President, subject to subsection (b), shall provide relief from imports 
of the article that is the subject of such determination to the extent 
that the President determines necessary to remedy or prevent the injury 
found by the Commission and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition.
    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the 
provision of the import relief will not provide greater economic and 
social benefits than costs.
    (c) Nature of Relief.--
            (1) In general.--The import relief (including provisional 
        relief) that the President is authorized to provide under this 
        section with respect to imports of an article is as follows:
                    (A) The suspension of any further reduction 
                provided for under Annex 2-B of the Agreement in the 
                duty imposed on such article.
                    (B) An increase in the rate of duty imposed on such 
                article to a level that does not exceed the lesser of--
                            (i) the column 1 general rate of duty 
                        imposed under the HTS on like articles at the 
                        time the import relief is provided; or
                            (ii) the column 1 general rate of duty 
                        imposed under the HTS on like articles on the 
                        day before the date on which the Agreement 
                        enters into force.
                    (C) In the case of a duty applied on a seasonal 
                basis to such article, an increase in the rate of duty 
                imposed on the article to a level that does not exceed 
                the lesser of--
                            (i) the column 1 general rate of duty 
                        imposed under the HTS on like articles for the 
                        immediately preceding corresponding season; or
                            (ii) the column 1 general rate of duty 
                        imposed under the HTS on like articles on the 
                        day before the date on which the Agreement 
                        enters into force.
            (2) Progressive liberalization.--If the period for which 
        import relief is provided under this section is greater than 1 
        year, the President shall provide for the progressive 
        liberalization (described in article 9.2.7 of the Agreement) of 
        such relief at regular intervals during the period in which the 
        relief is in effect.
    (d) Period of Relief.--
            (1) In general.--Subject to paragraph (2), any import 
        relief that the President provides under this section may not 
        be in effect for more than 2 years.
            (2) Extension.--
                    (A) In general.--Subject to subparagraph (C), the 
                President, after receiving an affirmative determination 
                from the Commission under subparagraph (B), may extend 
                the effective period of any import relief provided 
                under this section if the President determines that--
                            (i) the import relief continues to be 
                        necessary to remedy or prevent serious injury 
                        and to facilitate adjustment by the domestic 
                        industry to import competition; and
                            (ii) there is evidence that the industry is 
                        making a positive adjustment to import 
                        competition.
                    (B) Action by commission.--(i) Upon a petition on 
                behalf of the industry concerned that is filed with the 
                Commission not earlier than the date which is 9 months, 
                and not later than the date which is 6 months, before 
                the date any action taken under subsection (a) is to 
                terminate, the Commission shall conduct an 
                investigation to determine whether action under this 
                section continues to be necessary to remedy or prevent 
                serious injury and whether there is evidence that the 
                industry is making a positive adjustment to import 
                competition.
                    (ii) The Commission shall publish notice of the 
                commencement of any proceeding under this subparagraph 
                in the Federal Register and shall, within a reasonable 
                time thereafter, hold a public hearing at which the 
                Commission shall afford interested parties and 
                consumers an opportunity to be present, to present 
                evidence, and to respond to the presentations of other 
                parties and consumers, and otherwise to be heard.
                    (iii) The Commission shall transmit to the 
                President a report on its investigation and 
                determination under this subparagraph not later than 60 
                days before the action under subsection (a) is to 
                terminate, unless the President specifies a different 
                date.
                    (C) Period of import relief.--Any import relief 
                provided under this section, including any extensions 
                thereof, may not, in the aggregate, be in effect for 
                more than 4 years.
    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article--
            (1) the rate of duty on that article after such termination 
        and on or before December 31 of the year in which such 
        termination occurs shall be the rate that, according to the 
        Schedule of the United States to Annex 2-B of the Agreement for 
        the staged elimination of the tariff, would have been in effect 
        1 year after the provision of relief under subsection (a); and
            (2) the rate of duty for that article after December 31 of 
        the year in which termination occurs shall be, at the 
        discretion of the President, either--
                    (A) the applicable NTR (MFN) rate of duty for that 
                article set out in the Schedule of the United States to 
                Annex 2-B of the Agreement; or
                    (B) the rate of duty resulting from the elimination 
                of the tariff in equal annual stages ending on the date 
                set out in the Schedule of the United States to Annex 
                2-B of the Agreement for the elimination of the tariff.
    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on any article that--
            (1) is subject to--
                    (A) import relief under subtitle B; or
                    (B) an assessment of additional duty under 
                subsection (b), (c), or (d) of section 202; or
            (2) has been subject to import relief under this subtitle 
        after the date on which the Agreement enters into force.

SEC. 314. TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--Subject to subsection (b), no import relief may 
be provided under this subtitle after the date that is 10 years after 
the date on which the Agreement enters into force.
    (b) Exception.--If an article for which relief is provided under 
this subtitle is an article for which the period for tariff 
elimination, set out in the Schedule of the United States to Annex 2-B 
of the Agreement, is greater than 10 years, no relief under this 
subtitle may be provided for that article after the date on which such 
period ends.
    (c) Presidential Determination.--Import relief may be provided 
under this subtitle in the case of an Australian article after the date 
on which such relief would, but for this subsection, terminate under 
subsection (a) or (b), if the President determines that Australia has 
consented to such relief.

SEC. 315. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 313 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

    Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 
is amended in the first sentence--
            (1) by striking ``and''; and
            (2) by inserting before the period at the end ``, and title 
        III of the United States-Australia Free Trade Agreement 
        Implementation Act''.

           Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

    (a) In General.--A request under this subtitle for the purpose of 
adjusting to the obligations of the United States under the Agreement 
may be filed with the President by an interested party. Upon the filing 
of a request, the President shall review the request to determine, from 
information presented in the request, whether to commence consideration 
of the request.
    (b) Allegation of Critical Circumstances.--An interested party 
filing a request under this section may--
            (1) allege that critical circumstances exist such that 
        delay in the provision of relief would cause damage that would 
        be difficult to repair; and
            (2) based on such allegation, request that relief be 
        provided on a provisional basis.
    (c) Publication of Request.--If the President determines that the 
request under subsection (a) provides the information necessary for the 
request to be considered, the President shall cause to be published in 
the Federal Register a notice of commencement of consideration of the 
request, and notice seeking public comments regarding the request. The 
notice shall include a summary of the request and the dates by which 
comments and rebuttals must be received.

SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

    (a) Determination.--
            (1) In general.--If a positive determination is made under 
        section 321(c), the President shall determine whether, as a 
        result of the reduction or elimination of a duty under the 
        Agreement, an Australian textile or apparel article is being 
        imported into the United States in such increased quantities, 
        in absolute terms or relative to the domestic market for that 
        article, and under such conditions as to cause serious damage, 
        or actual threat thereof, to a domestic industry producing an 
        article that is like, or directly competitive with, the 
        imported article.
            (2) Serious damage.--In making a determination under 
        paragraph (1), the President--
                    (A) shall examine the effect of increased imports 
                on the domestic industry, as reflected in changes in 
                such relevant economic factors as output, productivity, 
                utilization of capacity, inventories, market share, 
                exports, wages, employment, domestic prices, profits, 
                and investment, none of which is necessarily decisive; 
                and
                    (B) shall not consider changes in technology or 
                consumer preference as factors supporting a 
                determination of serious damage or actual threat 
                thereof.
    (b) Provision of Relief.--
            (1) In general.--If a determination under subsection (a) is 
        affirmative, the President may provide relief from imports of 
        the article that is the subject of such determination, as 
        described in paragraph (2), to the extent that the President 
        determines necessary to remedy or prevent the serious damage 
        and to facilitate adjustment by the domestic industry to import 
        competition.
            (2) Nature of relief.--The relief that the President is 
        authorized to provide under this subsection with respect to 
        imports of an article is an increase in the rate of duty 
        imposed on the article to a level that does not exceed the 
        lesser of--
                    (A) the column 1 general rate of duty imposed under 
                the HTS on like articles at the time the import relief 
                is provided; or
                    (B) the column 1 general rate of duty imposed under 
                the HTS on like articles on the day before the date on 
                which the Agreement enters into force.
    (c) Critical Circumstances.--
            (1) Presidential determination.--When a request filed under 
        section 321(a) contains an allegation of critical circumstances 
        and a request for provisional relief under section 321(b), the 
        President shall, not later than 60 days after the request is 
        filed, determine, on the basis of available information, 
        whether--
                    (A) there is clear evidence that--
                            (i) imports from Australia have increased 
                        as the result of the reduction or elimination 
                        of a customs duty under the Agreement; and
                            (ii) such imports are causing serious 
                        damage, or actual threat thereof, to the 
                        domestic industry producing an article like or 
                        directly competitive with the imported article; 
                        and
                    (B) delay in taking action under this subtitle 
                would cause damage to that industry that would be 
                difficult to repair.
            (2) Extent of provisional relief.--If the determinations 
        under subparagraphs (A) and (B) of paragraph (1) are 
        affirmative, the President shall determine the extent of 
        provisional relief that is necessary to remedy or prevent the 
        serious damage. The nature of the provisional relief available 
        shall be the relief described in subsection (b)(2). Within 30 
        days after making affirmative determinations under 
        subparagraphs (A) and (B) of paragraph (1), the President, if 
        the President considers provisional relief to be warranted, 
shall provide, for a period not to exceed 200 days, such provisional 
relief that the President considers necessary to remedy or prevent the 
serious damage.
            (3) Suspension of liquidation.--If provisional relief is 
        provided under paragraph (2), the President shall order the 
        suspension of liquidation of all imported articles subject to 
        the affirmative determinations under subparagraphs (A) and (B) 
        of paragraph (1) that are entered, or withdrawn from warehouse 
        for consumption, on or after the date of the determinations.
            (4) Termination of provisional relief.--
                    (A) In general.--Any provisional relief implemented 
                under this subsection with respect to an imported 
                article shall terminate on the day on which--
                            (i) the President makes a negative 
                        determination under subsection (a) regarding 
                        serious damage or actual threat thereof by 
                        imports of such article;
                            (ii) action described in subsection (b) 
                        takes effect with respect to such article;
                            (iii) a decision by the President not to 
                        take any action under subsection (b) with 
                        respect to such article becomes final; or
                            (iv) the President determines that, because 
                        of changed circumstances, such relief is no 
                        longer warranted.
                    (B) Suspension of liquidation.--Any suspension of 
                liquidation ordered under paragraph (3) with respect to 
                an imported article shall terminate on the day on which 
                provisional relief is terminated under subparagraph (A) 
                with respect to the article.
                    (C) Rates of duty.--If an increase in, or the 
                imposition of, a duty that is provided under subsection 
                (b) on an imported article is different from a duty 
                increase or imposition that was provided for such an 
                article under this subsection, then the entry of any 
                such article for which liquidation was suspended under 
                paragraph (3) shall be liquidated at whichever of such 
                rates of duty is lower.
                    (D) Rate of duty if provisional relief.--If 
                provisional relief is provided under this subsection 
                with respect to an imported article and neither a duty 
                increase nor a duty imposition is provided under 
                subsection (b) for such article, the entry of any such 
                article for which liquidation was suspended under 
                paragraph (3) shall be liquidated at the rate of duty 
                that applied before the provisional relief was 
                provided.

SEC. 323. PERIOD OF RELIEF.

    (a) In General.--Subject to subsection (b), the import relief that 
the President provides under subsections (b) and (c) of section 322 may 
not, in the aggregate, be in effect for more than 2 years.
    (b) Extension.--
            (1) In general.--Subject to paragraph (2), the President 
        may extend the effective period of any import relief provided 
        under this subtitle for a period of not more than 2 years, if 
        the President determines that--
                    (A) the import relief continues to be necessary to 
                remedy or prevent serious damage and to facilitate 
                adjustment by the domestic industry to import 
                competition; and
                    (B) there is evidence that the industry is making a 
                positive adjustment to import competition.
            (2) Limitation.--Any relief provided under this subtitle, 
        including any extensions thereof, may not, in the aggregate, be 
        in effect for more than 4 years.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

     The President may not provide import relief under this subtitle 
with respect to any article if--
            (1) import relief previously has been provided under this 
        subtitle with respect to that article; or
            (2) the article is subject to import relief under--
                    (A) subtitle A; or
                    (B) chapter 1 of title II of the Trade Act of 1974 
                (19 U.S.C. 2251 et seq.).

SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

     When import relief under this subtitle is terminated with respect 
to an article, the rate of duty on that article shall be the rate that 
would have been in effect, but for the provision of such relief, on the 
date the relief terminates.

SEC. 326. TERMINATION OF RELIEF AUTHORITY.

     No import relief may be provided under this subtitle with respect 
to any article after the date that is 10 years after the date on which 
duties on the article are eliminated pursuant to the Agreement.

SEC. 327. COMPENSATION AUTHORITY.

     For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under this subtitle 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 328. BUSINESS CONFIDENTIAL INFORMATION.

    The President may not release information which is submitted in a 
proceeding under this subtitle and which the President considers to be 
confidential business information unless the party submitting the 
confidential business information had notice, at the time of 
submission, that such information would be released, or such party 
subsequently consents to the release of the information. To the extent 
a party submits confidential business information to the President in a 
proceeding under this subtitle, the party also shall submit a 
nonconfidential version of the information, in which the confidential 
business information is summarized or, if necessary, deleted.

       Subtitle C--Cases Under Title II of the Trade Act of 1974

SEC. 331. FINDINGS AND ACTION ON GOODS FROM AUSTRALIA.

    (a) Effect of Imports.--If, in any investigation initiated under 
chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
seq.), the Commission makes an affirmative determination (or a 
determination which the President may treat as an affirmative 
determination under such chapter by reason of section 330(d) of the 
Tariff Act of 1930), the Commission shall also find (and report to the 
President at the time such injury determination is submitted to the 
President) whether imports of the article from Australia are a 
substantial cause of serious injury or threat thereof.
    (b) Presidential Determination Regarding Australian Imports.--In 
determining the nature and extent of action to be taken under chapter 1 
of title II of the Trade Act of 1974, the President shall determine 
whether imports from Australia are a substantial cause of the serious 
injury or threat thereof found by the Commission and, if such 
determination is in the negative, may exclude from such action imports 
from Australia.

                         TITLE IV--PROCUREMENT

SEC. 401. ELIGIBLE PRODUCTS.

     Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C. 
2518(4)(A)) is amended--
            (1) by striking ``or'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) a party to a free trade agreement 
                        that entered into force with respect to the 
                        United States after December 31, 2003, and 
                        before January 2, 2005, a product or service of 
                        that country or instrumentality which is 
                        covered under the free trade agreement for 
                        procurement by the United States.''.




                                                 Union Calendar No. 357

108th CONGRESS

  2d Session

                               H. R. 4759

                          [Report No. 108-597]

_______________________________________________________________________

                                 A BILL

     To implement the United States-Australia Free Trade Agreement.

_______________________________________________________________________

                             July 12, 2004

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed