[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1688 Introduced in Senate (IS)]






108th CONGRESS
  1st Session
                                S. 1688

To amend the Internal Revenue Code of 1986 to repeal the exclusion for 
extraterritorial income and provide for a deduction relating to income 
  attributable to United States production activities, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 30 (legislative day, September 29), 2003

Mr. Rockefeller introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to repeal the exclusion for 
extraterritorial income and provide for a deduction relating to income 
  attributable to United States production activities, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Securing American 
Factory Employment (SAFE) Act''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

        TITLE I--PROVISIONS RELATING TO REPEAL OF EXCLUSION FOR 
                        EXTRATERRITORIAL INCOME

SEC. 101. REPEAL OF EXCLUSION FOR EXTRATERRITORIAL INCOME.

    (a) In General.--Section 114 is hereby repealed.
    (b) Conforming Amendments.--
            (1)(A) Subpart E of part III of subchapter N of chapter 1 
        (relating to qualifying foreign trade income) is hereby 
        repealed.
            (B) The table of subparts for such part III is amended by 
        striking the item relating to subpart E.
            (2) The table of sections for part III of subchapter B of 
        chapter 1 is amended by striking the item relating to section 
        114.
            (3) The second sentence of section 56(g)(4)(B)(i) is 
        amended by striking ``or under section 114''.
            (4) Section 275(a) is amended--
                    (A) by inserting ``or'' at the end of paragraph 
                (4)(A), by striking ``or'' at the end of paragraph 
                (4)(B) and inserting a period, and by striking 
                subparagraph (C), and
                    (B) by striking the last sentence.
            (5) Paragraph (3) of section 864(e) is amended--
                    (A) by striking:
            ``(3) Tax-exempt assets not taken into account.--
                    ``(A) In general.--For purposes of''; and 
                inserting:
            ``(3) Tax-exempt assets not taken into account.--For 
        purposes of'', and
                    (B) by striking subparagraph (B).
            (6) Section 903 is amended by striking ``114, 164(a),'' and 
        inserting ``164(a)''.
            (7) Section 999(c)(1) is amended by striking 
        ``941(a)(5),''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to transactions occurring after the date of the enactment 
        of this Act.
            (2) Binding contracts.--The amendments made by this section 
        shall not apply to any transaction in the ordinary course of a 
        trade or business which occurs pursuant to a binding contract--
                    (A) which is between the taxpayer and a person who 
                is not a related person (as defined in section 
                943(b)(3) of such Code, as in effect on the day before 
                the date of the enactment of this Act), and
                    (B) which is in effect on September 17, 2003, and 
                at all times thereafter.
    (d) Revocation of Section 943(e) Elections.--
            (1) In general.--In the case of a corporation that elected 
        to be treated as a domestic corporation under section 943(e) of 
        the Internal Revenue Code of 1986 (as in effect on the day 
        before the date of the enactment of this Act)--
                    (A) the corporation may, during the 1-year period 
                beginning on the date of the enactment of this Act, 
                revoke such election, effective as of such date of 
                enactment, and
                    (B) if the corporation does revoke such election--
                            (i) such corporation shall be treated as a 
                        domestic corporation transferring (as of such 
                        date of enactment) all of its property to a 
                        foreign corporation in connection with an 
                        exchange described in section 354 of such Code, 
                        and
                            (ii) no gain or loss shall be recognized on 
                        such transfer.
            (2) Exception.--Subparagraph (B)(ii) of paragraph (1) shall 
        not apply to gain on any asset held by the revoking corporation 
        if--
                    (A) the basis of such asset is determined in whole 
                or in part by reference to the basis of such asset in 
                the hands of the person from whom the revoking 
                corporation acquired such asset,
                    (B) the asset was acquired by transfer (not as a 
                result of the election under section 943(e) of such 
                Code) occurring on or after the 1st day on which its 
                election under section 943(e) of such Code was 
                effective, and
                    (C) a principal purpose of the acquisition was the 
                reduction or avoidance of tax (other than a reduction 
                in tax under section 114 of such Code, as in effect on 
                the day before the date of the enactment of this Act).
    (e) General Transition.--
            (1) In general.--In the case of a taxable year ending after 
        the date of the enactment of this Act and beginning before 
        January 1, 2007, for purposes of chapter 1 of such Code, a 
        current FSC/ETI beneficiary shall be allowed a deduction equal 
        to the transition amount determined under this subsection with 
        respect to such beneficiary for such year.
            (2) Current fsc/eti beneficiary.--The term ``current FSC/
        ETI beneficiary'' means any corporation which entered into one 
        or more transactions during its taxable year beginning in 
        calendar year 2002 with respect to which FSC/ETI benefits were 
        allowable.
            (3) Transition amount.--For purposes of this subsection--
                    (A) In general.--The transition amount applicable 
                to any current FSC/ETI beneficiary for any taxable year 
                is the phaseout percentage of the base period amount.
                    (B) Phaseout percentage.--
                            (i) In general.--In the case of a taxpayer 
                        using the calendar year as its taxable year, 
                        the phaseout percentage shall be determined 
                        under the following table:

                                                           The phaseout
Years:                                                   percentage is:
    2004..........................................                  80 
    2005..........................................                  80 
    2006..........................................                  60.
                            (ii) Special rule for 2003.--The phaseout 
                        percentage for 2003 shall be the amount that 
                        bears the same ratio to 100 percent as the 
                        number of days after the date of the enactment 
                        of this Act bears to 365.
                            (iii) Special rule for fiscal year 
                        taxpayers.--In the case of a taxpayer not using 
                        the calendar year as its taxable year, the 
                        phaseout percentage is the weighted average of 
                        the phaseout percentages determined under the 
                        preceding provisions of this paragraph with 
                        respect to calendar years any portion of which 
                        is included in the taxpayer's taxable year. The 
                        weighted average shall be determined on the 
                        basis of the respective portions of the taxable 
                        year in each calendar year.
            (4) Base period amount.--For purposes of this subsection, 
        the base period amount is the aggregate FSC/ETI benefits for 
        the taxpayer's taxable year beginning in calendar year 2002.
            (5) FSC/ETI benefit.--For purposes of this subsection, the 
        term ``FSC/ETI benefit'' means--
                    (A) amounts excludable from gross income under 
                section 114 of such Code, and
                    (B) the exempt foreign trade income of related 
                foreign sales corporations from property acquired from 
                the taxpayer (determined without regard to section 
                923(a)(5) of such Code (relating to special rule for 
                military property), as in effect on the day before the 
                date of the enactment of the FSC Repeal and 
                Extraterritorial Income Exclusion Act of 2000).
        In determining the FSC/ETI benefit there shall be excluded any 
        amount attributable to a transaction with respect to which the 
        taxpayer is the lessor unless the leased property was 
        manufactured or produced in whole or in part by the taxpayer.
            (6) Special rule for farm cooperatives.--Determinations 
        under this subsection with respect to an organization described 
        in section 943(g)(1) of such Code, as in effect on the day 
        before the date of the enactment of this Act, shall be made at 
        the cooperative level and the purposes of this subsection shall 
        be carried out in a manner similar to section 250(h) of such 
        Code, as added by this Act. Such determinations shall be in 
        accordance with such requirements and procedures as the 
        Secretary may prescribe.
            (7) Certain rules to apply.--Rules similar to the rules of 
        section 41(f) of such Code shall apply for purposes of this 
        subsection.
            (8) Coordination with binding contract rule.--The deduction 
        determined under paragraph (1) for any taxable year shall be 
        reduced by the phaseout percentage of any FSC/ETI benefit 
        realized for the taxable year by reason of subsection (c)(2), 
        except that for purposes of this paragraph the phaseout 
        percentage for 2003 shall be treated as being equal to 100 
        percent.
            (9) Special rule for taxable year which includes date of 
        enactment.--In the case of a taxable year which includes the 
        date of the enactment of this Act, the deduction allowed under 
        this subsection to any current FSC/ETI beneficiary shall in no 
        event exceed--
                    (A) 100 percent of such beneficiary's base period 
                amount for calendar year 2003, reduced by
                    (B) the aggregate FSC/ETI benefits of such 
                beneficiary with respect to transactions occurring 
                during the portion of the taxable year ending on the 
                date of the enactment of this Act.

SEC. 102. DEDUCTION RELATING TO INCOME ATTRIBUTABLE TO UNITED STATES 
              PRODUCTION ACTIVITIES.

    (a) In General.--Part VI of subchapter B of chapter 1 (relating to 
itemized deductions for individuals and corporations) is amended by 
adding at the end the following new section:

``SEC. 199. INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES.

    ``(a) In General.--There shall be allowed as a deduction an amount 
equal to 9 percent of the qualified production activities income of the 
taxpayer for the taxable year.
    ``(b) Phasein.--In the case of taxable years beginning in 2004, 
2005, 2006, 2007, or 2008, subsection (a) shall be applied by 
substituting for the `9 percent' the transition percentage determined 
under the following table:

``Taxable years                                          The transition
beginning in:                                            percentage is:

    2004..........................................                   1 
    2005..........................................                   2 
    2006..........................................                   3 
    2007 or 2008..................................                   6.
    ``(c) Qualified Production Activities Income.--For purposes of this 
section, the term `qualified production activities income' means an 
amount equal to the portion of the modified taxable income of the 
taxpayer which is attributable to domestic production activities.
    ``(d) Determination of Income Attributable to Domestic Production 
Activities.--For purposes of this section--
            ``(1) In general.--The portion of the modified taxable 
        income which is attributable to domestic production activities 
        is so much of the modified taxable income for the taxable year 
        as does not exceed--
                    ``(A) the taxpayer's domestic production gross 
                receipts for such taxable year, reduced by
                    ``(B) the sum of--
                            ``(i) the costs of goods sold that are 
                        allocable to such receipts,
                            ``(ii) other deductions, expenses, or 
                        losses directly allocable to such receipts, and
                            ``(iii) a proper share of other deductions, 
                        expenses, and losses that are not directly 
                        allocable to such receipts or another class of 
                        income.
            ``(2) Allocation method.--The Secretary shall prescribe 
        rules for the proper allocation of items of income, deduction, 
        expense, and loss for purposes of determining income 
        attributable to domestic production activities.
            ``(3) Special rules for determining costs.--
                    ``(A) In general.--For purposes of determining 
                costs under clause (i) of paragraph (1)(B), any item or 
                service brought into the United States without a 
                transfer price meeting the requirements of section 482 
                shall be treated as acquired by purchase, and its cost 
                shall be treated as not less than its value when it 
                entered the United States. A similar rule shall apply 
                in determining the adjusted basis of leased or rented 
                property where the lease or rental gives rise to 
                domestic production gross receipts.
                    ``(B) Exports for further manufacture.--In the case 
                of any property described in subparagraph (A) that had 
                been exported by the taxpayer for further manufacture, 
                the increase in cost or adjusted basis under 
                subparagraph (A) shall not exceed the difference 
                between the value of the property when exported and the 
                value of the property when brought back into the United 
                States after the further manufacture.
            ``(4) Modified taxable income.--The term `modified taxable 
        income' means taxable income computed without regard to the 
        deduction allowable under this section.
    ``(e) Domestic Production Gross Receipts.--For purposes of this 
section, the term `domestic production gross receipts' means the gross 
receipts of the taxpayer which are derived from--
            ``(1) any sale, exchange, or other disposition of, or
            ``(2) any lease, rental, or license of,
qualifying production property which was manufactured, produced, grown, 
or extracted in whole or in significant part by the taxpayer within the 
United States.
    ``(f) Qualifying Production Property.--For purposes of this 
section--
            ``(1) In general.--Except as otherwise provided in this 
        paragraph, the term `qualifying production property' means--
                    ``(A) any tangible personal property,
                    ``(B) any computer software, and
                    ``(C) any property described in section 168(f) (3) 
                or (4).
            ``(2) Exclusions from qualifying production property.--The 
        term `qualifying production property' shall not include--
                    ``(A) consumable property that is sold, leased, or 
                licensed by the taxpayer as an integral part of the 
                provision of services,
                    ``(B) electricity,
                    ``(C) water supplied by pipeline to the consumer,
                    ``(D) utility services, or
                    ``(E) any property (not described in paragraph 
                (1)(B)) which is a film, tape, recording, book, 
                magazine, newspaper, or similar property the market for 
                which is primarily topical or otherwise essentially 
                transitory in nature.
    ``(g) Definitions and Special Rules.--
            ``(1) Treatment of pass-thru entities.--The Secretary shall 
        prescribe rules for the proper application of this section in 
        the case of pass-thru entities other than cooperatives to which 
        paragraph (2) applies and subchapter S corporations.
            ``(2) Exclusion for patrons of cooperatives.--
                    ``(A) In general.--If any amount described in 
                paragraph (1) or (3) of section 1385 (a)--
                            ``(i) is received by a person from an 
                        organization to which part I of subchapter T 
                        applies, and
                            ``(ii) is allocable to the portion of the 
                        qualified production activities income of the 
                        organization which is deductible under 
                        subsection (a) and designated as such by the 
                        organization in a written notice mailed to its 
                        patrons during the payment period described in 
                        section 1382(a),
                then such person shall be allowed an exclusion from 
                gross income with respect to such amount. The taxable 
                income of the organization shall not be reduced under 
                section 1382 by the portion of any such amount with 
                respect to which an exclusion is allowable to a person 
                by reason of this paragraph.
                    ``(B) Special rules.--For purposes of applying 
                subparagraph (A), in determining the qualified 
                production activities income of the organization under 
                this section--
                            ``(i) there shall not be taken into account 
                        in computing the organization's modified 
                        taxable income any deduction allowable under 
                        subsection (b) or (c) of section 1382 (relating 
                        to patronage dividends, per-unit retain 
                        allocations, and nonpatronage distributions), 
                        and
                            ``(ii) the organization shall be treated as 
                        having manufactured, produced, grown, or 
                        extracted in whole or significant part any 
                        qualifying production property marketed by the 
                        organization which its patrons have so 
                        manufactured, produced, grown, or extracted.
            ``(3) Coordination with minimum tax.--The deduction under 
        this section shall be allowed for purposes of the tax imposed 
        by section 55; except that for purposes of section 55, 
        alternative minimum taxable income shall be taken into account 
        in determining the deduction under this section.
            ``(4) Ordering rule.--The amount of any other deduction 
        allowable under this chapter shall be determined as if this 
        section had not been enacted.
            ``(5) Coordination with transition rules.--For purposes of 
        this section--
                    ``(A) domestic production gross receipts shall not 
                include gross receipts from any transaction if the 
                binding contract transition relief of section 101(c)(2) 
                of the Securing American Factory Employment (SAFE) Act 
                applies to such transaction, and
                    ``(B) any deduction allowed under section 101(e) of 
                such Act shall be disregarded in determining the 
                portion of the taxable income which is attributable to 
                domestic production gross receipts.''.
    (b) Deduction Allowed to Shareholders of S Corporations.--
            (1) In general.--Section 1363(b) (relating to computation 
        of S corporation's taxable income) is amended by striking 
        ``and'' at the end of paragraph (3), by striking the period at 
        the end of paragraph (4) and inserting ``, and'', and by adding 
        at the end the following new paragraph:
            ``(5) the deduction under section 199 shall be allowed to 
        the S corporation.''
            (2) Increase in basis.--Section 1367(a)(1) (relating to 
        increases in basis) is amended by striking ``and'' at the end 
        of subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(D) any deduction allowed under section 199.''
    (c) Minimum Tax.--Section 56(g)(4)(C) (relating to disallowance of 
items not deductible in computing earnings and profits) is amended by 
adding at the end the following new clause:
                            ``(v) Deduction for domestic production.--
                        Clause (i) shall not apply to any amount 
                        allowable as a deduction under section 199.''
    (d) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 is amended by adding at the end the following 
new item:

                              ``Sec. 199. Income attributable to 
                                        domestic production 
                                        activities.''

    (e) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years ending after the date of the enactment 
        of this Act.
            (2) Application of section 15.--Section 15 of the Internal 
        Revenue Code of 1986 shall apply to the amendments made by this 
        section as if they were changes in a rate of tax.

  TITLE II--EMPLOYER-PROVIDED RETIRED EMPLOYEE HEALTH CARE TAX CREDIT

SEC. 201. TAX CREDIT FOR 75 PERCENT OF EMPLOYER-PROVIDED RETIRED 
              EMPLOYEE HEALTH PREMIUMS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business-related credits) is amended by adding at the end 
the following:

``SEC. 45G. RETIRED EMPLOYEE HEALTH INSURANCE EXPENSES.

    ``(a) General Rule.--For purposes of section 38, in the case of a 
qualified employer, the retired employee health insurance expenses 
credit determined under this section is an amount equal to 75 percent 
of the amount paid by the taxpayer during the taxable year for 
qualified retired employee health insurance expenses.
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified employer.--The term `qualified employer' 
        means any employer which is eligible for the deduction 
        allowable under section 199 for the taxable year.
            ``(2) Qualified retired employee health insurance 
        expenses.--
                    ``(A) In general.--The term `qualified retired 
                employee health insurance expenses' means any amount 
                paid by an employer for health insurance coverage to 
                the extent such amount is attributable to coverage 
                provided to any retired employee and such retired 
                employee's spouse and dependents.
                    ``(B) Exception for amounts paid under salary 
                reduction arrangements.--No amount paid or incurred for 
                health insurance coverage pursuant to a salary 
                reduction arrangement shall be taken into account under 
                subparagraph (A).
                    ``(C) Health insurance coverage.--The term `health 
                insurance coverage' has the meaning given such term by 
                paragraph (1) of section 9832(b) (determined by 
                disregarding the last sentence of paragraph (2) of such 
                section).
            ``(3) Retired employee--The term `retired employee' means 
        an individual who has met any years of service or disability 
        requirements under an employee benefit plan of the employer.
    ``(c) Certain Rules Made Applicable.--For purposes of this section, 
rules similar to the rules of section 52 shall apply.
    ``(d) Denial of Double Benefit.--No deduction or credit under any 
other provision of this chapter shall be allowed with respect to 
qualified retired employee health insurance expenses taken into account 
under subsection (a).
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2003.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) 
(relating to current year business credit) is amended by striking 
``plus'' at the end of paragraph (14), by striking the period at the 
end of paragraph (15) and inserting ``, plus'', and by adding at the 
end the following:
            ``(16) the retired employee health insurance expenses 
        credit determined under section 45G.''.
    (c) No Carrybacks.--Subsection (d) of section 39 (relating to 
carryback and carryforward of unused credits) is amended by adding at 
the end the following:
            ``(11) No carryback of section 45g credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the retired employee health 
        insurance expenses credit determined under section 45G may be 
        carried back to a taxable year ending before the date of the 
        enactment of section 45G.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following:

                              ``Sec. 45G. Retired employee health 
                                        insurance expenses.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2003.

      TITLE III--AMENDMENTS TO TITLE VII OF THE TARIFF ACT OF 1930

SEC. 301. CAPTIVE PRODUCTION.

    Section 771(7)(C)(iv) of the Tariff Act of 1930 (19 U.S.C. 
1677(7)(C)(iv)) is amended to read as follows:
                            ``(iv) Captive production.--If domestic 
                        producers transfer internally, including to 
                        affiliated persons as defined in paragraph 
                        (33), significant production of the domestic 
                        like product for the production of a downstream 
                        article and sell significant production of the 
                        domestic like product in the merchant market, 
                        then the Commission, in determining market 
                        share and the factors affecting financial 
                        performance set forth in clause (iii), shall 
                        focus primarily on the merchant market for the 
                        domestic like product.''.

SEC. 302. PRICE.

    Section 771(7)(C)(ii) of the Tariff Act of 1930 (19 U.S.C. 
1677(7)(C)(ii)) is amended by adding at the end the following flush 
sentence:
                        ``Imports of the subject merchandise may have a 
                        significant effect on prices irrespective of 
                        whether the magnitude of, or change in the 
                        volume of, imports of the subject merchandise 
                        is significant.''.

SEC. 303. VULNERABILITY OF INDUSTRY.

    Section 771(7)(C)(iii) of the Tariff Act of 1930 (19 U.S.C. 
1677(7)(C)(iii)) is amended in the last sentence by striking the period 
at the end and inserting ``, including whether the industry is 
vulnerable to the effects of imports of the subject merchandise.''.

SEC. 304. CAUSAL RELATIONSHIP BETWEEN IMPORTS AND INJURY.

    Section 771(7)(E)(ii) of the Tariff Act of 1930 (19 U.S.C. 
1677(7)(E)(ii)) is amended by adding at the end the following: ``The 
Commission need not determine the significance of imports of the 
subject merchandise relative to other economic factors.''.

SEC. 305. PREVENTION OF CIRCUMVENTION.

    Section 781(c) of the Tariff Act of 1930 (19 U.S.C. 1677j(c)) is 
amended by adding at the end the following new paragraph:
            ``(3) Special rule.--The administering authority shall 
        apply paragraph (1) with respect to altered merchandise 
        excluded from, or not specifically included in, the merchandise 
        description used in an outstanding order or finding, if such 
        application is not inconsistent with the affirmative 
        determination of the Commission on which the order or finding 
        is based.''.

SEC. 306. FULL RECOGNITION OF SUBSIDY CONFERRED THROUGH PROVISION OF 
              GOODS AND SERVICES AND PURCHASE OF GOODS.

    Section 771(5)(E) of the Tariff Act of 1930 (19 U.S.C. 1677(5)(E)) 
is amended by adding at the end the following: ``If transactions in the 
country which is the subject of the investigation or review do not 
reflect market conditions due to government action associated with 
provision of the good or service or purchase of the goods, 
determination of the adequacy of remuneration shall be through 
comparison with the most comparable market price elsewhere in the 
world.''.

SEC. 307. PROHIBITION ON MASKING REIMBURSEMENT OF DUTIES.

    Section 772(d) of the Tariff Act of 1930 (19 U.S.C. 1677a(d)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraphs:
            ``(4) if the importer is the producer or exporter, or the 
        importer and the producer or exporter are affiliated persons, 
        an amount equal to the dumping margin calculated under section 
        771(35)(A), unless the producer or exporter is able to 
        demonstrate that the importer was in no way reimbursed for any 
        antidumping duties paid; and
            ``(5) if the importer is the producer or exporter, or the 
        importer and the producer or exporter are affiliated persons, 
        an amount equal to the net countervailable subsidy calculated 
        under section 771(6), unless the producer or exporter is able 
        to demonstrate that the importer was in no way reimbursed for 
        any countervailing duties paid.''.

SEC. 308. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE.

    Section 772(c)(2)(A) of the Tariff Act of 1930 (19 U.S.C. 
1677a(c)(2)(A)) is amended by inserting ``(including countervailing 
duties imposed under this title)'' after ``duties''.

SEC. 309. APPLICATION TO CANADA AND MEXICO.

    Pursuant to article 1902 of the North American Free Trade Agreement 
and section 408 of the North American Free Trade Agreement 
Implementation Act, the amendments made by this title shall apply with 
respect to goods from Canada and Mexico.

SEC. 310. EFFECTIVE DATE.

    The amendments made by this title shall apply with respect to 
determinations made under title VII of the Tariff Act of 1930 that--
            (1) are made with respect to investigations initiated or 
        petitions filed after the date of enactment of this Act; or
            (2) have not become final as of such date of enactment.
                                 <all>