I 112th CONGRESS 1st Session H. R. 2813 IN THE HOUSE OF REPRESENTATIVES August 5, 2011 Mr. Welch introduced the following bill; which was referred to the Committee on Ways and Means A BILL To impose tariff-rate quotas on certain casein and milk protein concentrates.

1.

Short title

This Act may be cited as the Milk Import Tariff Equity Act.

2.

Imposition of tariff-rate quotas on certain casein and milk concentrates

(a)

Casein and Casein Products

(1)

In general

The Additional U.S. notes to chapter 35 of the Harmonized Tariff Schedule of the United States are amended— (A)by striking Additional U.S. Note and inserting Additional U.S. Notes; (B)in note 1, by striking subheading 3501.10.10 and inserting subheadings 3501.10.05, 3501.10.15, and 3501.10.20; and (C)by adding at the end the following new note: 2. The aggregate quantity of casein, caseinates, milk protein concentrate, and other casein derivatives entered under subheadings 3501.10.15, 3501.10.65, and 3501.90.65 in any calendar year shall not exceed 110 percent of the average quantity of such articles imported into the United States during the preceding 3 calendar years, as determined by the Secretary of Agriculture. Articles originating in a country with which the United States has a free trade agreement in force shall not be permitted or included under this quantitative limitation and no such article shall be classifiable therein. . (2)

Rates for certain caseins, caseinates, and other derivatives and glues

Chapter 35 of the Harmonized Tariff Schedule of the United States is amended by striking subheadings 3501.10 through 3501.90.60 and inserting the following new subheadings, with the article descriptions for subheadings 3501.10 and 3501.90 having the same degree of indentation as the article description for subheading 3502.20.00: 3501.10Casein: Milk protein concentrate: 3501.10.05Described in general note 15 to the tariff schedule and entered pursuant to its provisions0.37¢/kgFree (A*, CA, CL, E, IL, J, JO, MX, SG)       0.2¢/kg (AU)12¢/kg 3501.10.15Described in additional U.S. note 2 to this chapter and entered according to its provisions0.37¢/kgFree (A*, CA, CL, E, IL, J, JO, SG)       0.2¢/kg (AU)12¢/kg 3501.10.20Other$2.16/kgFree (MX)$2.81/kg Other: 3501.10.55Suitable only for industrial uses other than the manufacture of food for humans or other animals or as ingredients in such foodFreeFree Other: 3501.10.60Described in general note 15 to the tariff schedule and entered pursuant to its provisions0.37¢/kgFree (A*, CA, CL, E, IL, J, JO, MX, SG)       0.2¢/kg (AU)12¢/kg 3501.10.65Described in additional U.S. note 2 to this chapter and entered according to its provisions0.37¢/kgFree (A*, CA, CL, E, IL, J, JO, SG)       0.2¢/kg (AU)12¢/kg 3501.10.70Other$2.16/kgFree (MX)$2.81/kg 3501.90Other: 3501.90.05Casein glues6%Free (A*, CA, CL, E, IL, J, JO, MX)       3% (SG)       4.5% (AU)30% Other: 3501.90.30Suitable only for industrial uses other than the manufacture of food for humans or other animals or as ingredients in such food6%Free (A*, CA, CL, E, IL, J, JO, MX, SG)       0.2¢/kg (AU)30% Other: 3501.90.55Described in general note 15 to the tariff schedule and entered pursuant to its provisions0.37¢/kgFree (A*, CA, CL, E, IL, J, JO, MX, SG)       0.2¢/kg (AU)12.1¢/kg 3501.90.65Described in additional U.S. note 2 to this chapter and entered according to its provisions0.37¢/kgFree (A*, CA, CL, E, IL, J, JO, SG)       0.2¢/kg (AU)12.1¢/kg 3501.90.70Other$2.16/kgFree (MX)$2.81/kg . (b)

Milk Protein Concentrates

(1)

In general

The Additional U.S. notes to chapter 4 of the Harmonized Tariff Schedule of the United States are amended— (A)in note 13, by striking subheading 0404.90.10 and inserting subheadings 0404.90.05, 0404.90.15, and 0404.90.20; and (B)by adding at the end the following new note: 27. The aggregate quantity of milk protein concentrates entered under subheading 0404.90.15 in any calendar year shall not exceed 110 percent of the average quantity of such articles imported into the United States during the preceding 3 calendar years, as determined by the Secretary of Agriculture. Articles originating in a country with which the United States has a free trade agreement in force shall not be permitted or included under this quantitative limitation and no such article shall be classifiable therein. . (2)

Rates for certain milk protein concentrates

Chapter 4 of the Harmonized Tariff Schedule of the United States is amended by striking subheadings 0404.90 through 0404.90.10 and inserting the following new subheadings, with the article description for subheading 0404.90 having the same degree of indentation as the article description for subheading 0404.10 and with the article descriptions for subheadings 0404.90.05, 0404.90.15, and 0404.90.20 having the same degree of indentation as the article description for subheading 0405.20.40: 0404.90Other: Milk protein concentrates: 0404.90.05Described in general note 15 to the tariff schedule and entered pursuant to its provisions0.37¢/kgFree (A*, CA, CL, E, IL, J, JO, MX, SG) 0.2¢/kg (AU)12¢/kg 0404.90.15Described in additional U.S. note 27 to this chapter and entered pursuant to its provisions0.37¢/kgFree (A*, CA, CL, E, IL, J, JO, SG)       0.2¢/kg (AU)12¢/kg 0404.90.20Other$1.56/kgFree (MX)$2.02/kg . (c)

Effective Date

(1)

In general

The amendments made by this section apply to— (A)goods entered, or withdrawn from warehouse for consumption, on or after the first day of the first month after the date that is 90 days after the date of the enactment of this Act; or (B)if the President notifies Congress that the international obligations of the United States require the President to enter into negotiations pursuant to an existing trade agreement under section 3(a)(1), goods entered, or withdrawn from warehouse for consumption, on or after the first day of the first month after the date that is 150 days after the date of the enactment of this Act. (2)

Transitional provisions

(A)

Chapter 35

Notwithstanding Additional U.S. note 2 to chapter 35 of the Harmonized Tariff Schedule of the United States (as added by subsection (a)(1)(C) of this section), in the case of any calendar year that includes the effective date described in paragraph (1), the aggregate amount of casein, caseinates, milk protein concentrate, and other casein derivatives entered under subheadings 3501.10.15, 3501.10.65, and 3501.90.65 shall not exceed an amount equal to— (i)110 percent of the average quantity of such articles imported into the United States during the preceding 3 calendar years, as determined by the Secretary of Agriculture; multiplied by (ii)the quotient of— (I)the number of calendar days remaining in such calendar year beginning with such effective date; divided by (II)365 days. (B)

Chapter 4

Notwithstanding Additional U.S. note 27 to chapter 4 of the Harmonized Tariff Schedule of the United States (as added by subsection (b)(1)(B) of this section), in the case of any calendar year that includes the effective date described in paragraph (1), the aggregate amount of milk protein concentrates entered under subheading 0404.90.15 shall not exceed an amount equal to— (i)110 percent of the average quantity of such articles imported into the United States during the preceding 3 calendar years, as determined by the Secretary of Agriculture; multiplied by (ii)the quotient of— (I)the number of calendar days remaining in such calendar year beginning with such effective date; divided by (II)365 days.

3.

Compensation authority

(a)

In General

If the provisions of section 2 require, the President— (1)may enter into a trade agreement, or enter into negotiations pursuant to an existing trade agreement, with any foreign country or instrumentality for the purpose of granting new concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and (2)may proclaim such modification or continuance of any general rate of duty, or such continuance of duty-free or excise treatment, or any quantitative limitation, as the President determines to be required or appropriate to carry out any such agreement. (b)

Limitations

(1)

In general

No proclamation shall be made pursuant to subsection (a) decreasing any general rate of duty to a rate which is less than 70 percent of the existing general rate of duty. (2)

Special rule for certain duty reductions

If the general rate of duty in effect is an intermediate stage under an agreement in effect before August 6, 2002, under section 1102(a) of the Omnibus Trade and Competitiveness Act of 1988 or under an agreement entered into under section 2103 (a) or (b) of the Bipartisan Trade Promotion Authority Act of 2002, the proclamation made pursuant to subsection (a) may provide for the reduction of each general rate of duty at each such stage by not more than 30 percent of such general rate of duty, and may provide for a final general rate of duty which is not less than 70 percent of the general rate of duty proclaimed as the final stage under such agreement. (3)

Rounding

If the President determines that such action will simplify the computation of the amount of duty computed with respect to an article, the President may exceed the limitations provided in paragraphs (1) and (2) by not more than the lesser of— (A)the difference between such limitation and the next lower whole number, or (B)one-half of 1 percent ad valorem.