[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5430 Enrolled Bill (ENR)]
H.R.5430
One Hundred Sixteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty
An Act
To implement the Agreement between the United States of America, the
United Mexican States, and Canada attached as an Annex to the Protocol
Replacing the North American 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-
Mexico-Canada 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. Purpose.
Sec. 3. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE USMCA
Sec. 101. Approval and entry into force of the USMCA.
Sec. 102. Relationship of the USMCA to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force;
initial regulations; tariff proclamation authority.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Trade Representative authority.
Sec. 107. Effective date.
TITLE II--CUSTOMS PROVISIONS
Sec. 201. Exclusion of originating goods of USMCA countries from special
agriculture safeguard authority.
Sec. 202. Rules of origin.
Sec. 202A. Special rules for automotive goods.
Sec. 203. Merchandise processing fee.
Sec. 204. Disclosure of incorrect information; false certifications of
origin; denial of preferential tariff treatment.
Sec. 205. Reliquidation of entries.
Sec. 206. Recordkeeping requirements.
Sec. 207. Actions regarding verification of claims under the USMCA.
Sec. 208. Drawback [reserved].
Sec. 209. Other amendments to the Tariff Act of 1930.
Sec. 210. Regulations.
TITLE III--APPLICATION OF USMCA TO SECTORS AND SERVICES
Subtitle A--Relief From Injury Caused by Import Competition [reserved]
Subtitle B--Temporary Entry of Business Persons [reserved]
Subtitle C--United States-Mexico Cross-Border Long-Haul Trucking
Services
Sec. 321. Definitions.
Sec. 322. Investigations and determinations by Commission.
Sec. 323. Commission recommendations and report.
Sec. 324. Action by President with respect to affirmative determination.
Sec. 325. Confidential business information.
Sec. 326. Conforming amendments.
Sec. 327. Survey of operating authorities.
TITLE IV--ANTIDUMPING AND COUNTERVAILING DUTIES
Subtitle A--Preventing Duty Evasion
Sec. 401. Cooperation on duty evasion.
Subtitle B--Dispute Settlement [reserved]
Subtitle C--Conforming Amendments
Sec. 421. Judicial review in antidumping duty and countervailing duty
cases.
Sec. 422. Conforming amendments to other provisions of the Tariff Act of
1930.
Sec. 423. Conforming amendments to title 28, United States Code.
Subtitle D--General Provisions
Sec. 431. Effect of termination of USMCA country status.
Sec. 432. Effective date.
TITLE V--TRANSFER PROVISIONS AND OTHER AMENDMENTS
Sec. 501. Drawback.
Sec. 502. Relief from injury caused by import competition.
Sec. 503. Temporary entry.
Sec. 504. Dispute settlement in antidumping and countervailing duty
cases.
Sec. 505. Government procurement.
Sec. 506. Actions affecting United States cultural industries.
Sec. 507. Regulatory treatment of uranium purchases.
Sec. 508. Report on amendments to existing law.
TITLE VI--TRANSITION TO AND EXTENSION OF USMCA
Subtitle A--Transitional Provisions
Sec. 601. Repeal of North American Free Trade Agreement Implementation
Act.
Sec. 602. Continued suspension of the United States-Canada Free-Trade
Agreement.
Subtitle B--Joint Reviews Regarding Extension of USMCA
Sec. 611. Participation in joint reviews with Canada and Mexico
regarding extension of the term of the USMCA and other action
regarding the USMCA.
Subtitle C--Termination of USMCA
Sec. 621. Termination of USMCA.
TITLE VII--LABOR MONITORING AND ENFORCEMENT
Sec. 701. Definitions.
Subtitle A--Interagency Labor Committee for Monitoring and Enforcement
Sec. 711. Interagency labor committee for monitoring and enforcement.
Sec. 712. Duties.
Sec. 713. Enforcement priorities.
Sec. 714. Assessments.
Sec. 715. Recommendation for enforcement action.
Sec. 716. Petition process.
Sec. 717. Hotline.
Sec. 718. Reports.
Sec. 719. Consultations on appointment and funding of rapid response
labor panelists.
Subtitle B--Mexico Labor Attaches
Sec. 721. Establishment.
Sec. 722. Duties.
Sec. 723. Status.
Subtitle C--Independent Mexico Labor Expert Board
Sec. 731. Establishment.
Sec. 732. Membership; term.
Sec. 733. Funding.
Sec. 734. Reports.
Subtitle D--Forced Labor
Sec. 741. Forced labor enforcement task force.
Sec. 742. Timeline required.
Sec. 743. Reports required.
Sec. 744. Duties related to Mexico.
Subtitle E--Enforcement Under Rapid Response Labor Mechanism
Sec. 751. Transmission of reports.
Sec. 752. Suspension of liquidation.
Sec. 753. Final remedies.
TITLE VIII--ENVIRONMENT MONITORING AND ENFORCEMENT
Sec. 801. Definitions.
Subtitle A--Interagency Environment Committee for Monitoring and
Enforcement
Sec. 811. Establishment.
Sec. 812. Assessment.
Sec. 813. Monitoring actions.
Sec. 814. Enforcement actions.
Sec. 815. Other monitoring and enforcement actions.
Sec. 816. Report to Congress.
Sec. 817. Regulations.
Subtitle B--Other Matters
Sec. 821. Border water infrastructure improvement authority.
Sec. 822. Detail of personnel to Office of the United States Trade
Representative.
Subtitle C--North American Development Bank
Sec. 831. General capital increase.
Sec. 832. Policy goals.
Sec. 833. Efficiencies and streamlining.
Sec. 834. Performance measures.
TITLE IX--USMCA SUPPLEMENTAL APPROPRIATIONS ACT, 2019
SEC. 2. PURPOSE.
The purpose of this Act is to approve and implement the Agreement
between the United States of America, the United Mexican States, and
Canada entered into under the authority of section 103(b) of the
Bipartisan Congressional Trade Priorities and Accountability Act of
2015 (19 U.S.C. 4202(b)).
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee on
Finance of the Senate and the Committee on Ways and Means of the
House of Representatives.
(2) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule
of the United States.
(3) Identical goods.--The term ``identical goods'' means goods
that are the same in all respects relevant to the rule of origin
that qualifies the goods as originating goods.
(4) International trade commission.--The term ``International
Trade Commission'' means the United States International Trade
Commission.
(5) Mexico.--The term ``Mexico'' means the United Mexican
States.
(6) NAFTA.--The term ``NAFTA'' means the North American Free
Trade Agreement approved by Congress under section 101(a)(1) of the
North American Free Trade Agreement Implementation Act (19 U.S.C.
3311(a)(1)).
(7) Preferential tariff treatment.--The term ``preferential
tariff treatment'' means the customs duty rate that is applicable
to an originating good (as defined in section 202(a)) under the
USMCA.
(8) Trade representative.--The term ``Trade Representative''
means the United States Trade Representative.
(9) USMCA.--The term ``USMCA'' means the Agreement between the
United States of America, the United Mexican States, and Canada,
which is--
(A) attached as an Annex to the Protocol Replacing the
North American Free Trade Agreement with the Agreement between
the United States of America, the United Mexican States, and
Canada, done at Buenos Aires on November 30, 2018, as amended
by the Protocol of Amendment to the Agreement Between the
United States of America, the United Mexican States, and
Canada, done at Mexico City on December 10, 2019; and
(B) approved by Congress under section 101(a)(1).
(10) USMCA country.--Except as otherwise provided, the term
``USMCA country'' means--
(A) Canada for such time as the USMCA is in force with
respect to, and the United States applies the USMCA to, Canada;
and
(B) Mexico for such time as the USMCA is in force with
respect to, and the United States applies the USMCA to, Mexico.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE USMCA
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE USMCA.
(a) Approval of USMCA and Statement of Administrative Action.--
Pursuant to section 106 of the Bipartisan Congressional Trade
Priorities and Accountability Act of 2015 (19 U.S.C. 4205) and section
151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress approves--
(1) the Protocol Replacing the North American Free Trade
Agreement with the Agreement between the United States of America,
the United Mexican States, and Canada, done at Buenos Aires on
November 30, 2018, as submitted to Congress on December 13, 2019;
(2) the Agreement between the United States of America, the
United Mexican States, and Canada, attached as an Annex to the
Protocol, as amended by the Protocol of Amendment to the Agreement
between the United States of America, the United Mexican States,
and Canada, done at Mexico City on December 10, 2019, as submitted
to Congress on December 13, 2019; and
(3) the statement of administrative action proposed to
implement that Agreement, as submitted to Congress on December 13,
2019.
(b) Conditions for Entry Into Force of the Agreement.--The
President is authorized to provide for the USMCA to enter into force
with respect to Canada and Mexico not earlier than 30 days after the
date on which the President submits to Congress the written notice
required by section 106(a)(1)(G) of the Bipartisan Congressional Trade
Priorities and Accountability Act of 2015 (19 U.S.C. 4205(a)(1)(G)),
which shall include the date on which the USMCA will enter into force.
SEC. 102. RELATIONSHIP OF THE USMCA TO UNITED STATES AND STATE LAW.
(a) Relationship of USMCA to United States Law.--
(1) United states law to prevail in conflict.--No provision of
the USMCA, 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 USMCA 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
USMCA, 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 USMCA With Respect to Private Remedies.--No person
other than the United States--
(1) shall have any cause of action or defense under the USMCA
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 USMCA.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE;
INITIAL REGULATIONS; TARIFF PROCLAMATION AUTHORITY.
(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 prescribe 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 on which
the USMCA 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 USMCA 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
contained 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 on which
the USMCA enters into force of any action proclaimed under this
section.
(b) Initial Regulations.--
(1) In general.--Except as provided by paragraph (2) or (3),
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 approved under section 101(a)(2)
to implement the USMCA shall, to the maximum extent feasible, be
prescribed within 1 year after the date on which the USMCA enters
into force.
(2) Uniform regulations.--Interim or initial regulations to
implement the Uniform Regulations regarding rules of origin
provided for under article 5.16 of the USMCA shall be prescribed
not later than the date on which the USMCA enters into force.
(3) Implementing actions with effective dates after entry into
force.--In the case of any implementing action that takes effect on
a date after the date on which the USMCA enters into force, initial
regulations to carry out that action shall, to the maximum extent
feasible, be prescribed within 1 year after such effective date.
(c) Tariff Modifications.--
(1) Tariff modifications provided for in the usmca.--The
President may proclaim--
(A) such modifications or continuation of any duty,
(B) such continuation of duty-free or excise treatment, or
(C) such additional duties,
as the President determines to be necessary or appropriate to carry
out or apply articles 2.4, 2.5, 2.7, 2.8, 2.9, 2.10, 6.2, and 6.3,
the Schedule of the United States to Annex 2-B, including the
appendices to that Annex, Annex 2-C, and Annex 6-A, of the USMCA.
(2) Other tariff modifications.--Subject to the consultation
and layover provisions of section 104, the President may proclaim--
(A) such modifications or continuation of any duty,
(B) such modifications as the United States may agree to
with a USMCA country regarding the staging of any duty
treatment set forth in the Schedule of the United States to
Annex 2-B of the USMCA, including the appendices to that Annex,
(C) such continuation of duty-free or excise treatment, or
(D) 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 a USMCA country provided for by the
USMCA.
(3) Conversion to ad valorem rates.--For purposes of paragraphs
(1) and (2), with respect to any good for which the base rate in
the Schedule of the United States to Annex 2-B of the USMCA is a
specific or compound rate of duty, the President shall substitute
for the base rate an ad valorem rate that the President determines
to be equivalent to the base rate.
(4) Tariff-rate quotas.--In implementing the tariff-rate quotas
set forth in the Schedule of the United States to Annex 2-B of the
USMCA, the President shall take such actions as may be necessary to
ensure that imports of agricultural goods do not disrupt the
orderly marketing of agricultural goods in the United States.
(5) Presidential proclamation authority relating to rules of
origin.--
(A) In general.--The President may proclaim, as part of the
HTS--
(i) the provisions set forth in Annex 4-B of the USMCA;
(ii) the provisions set forth in paragraph 2 of article
3.A.6 of Annex 3-A of the USMCA;
(iii) the provisions set forth in paragraph 5 of Annex
3-B of the USMCA;
(iv) the provisions set forth in paragraphs 14(b),
14(c), and 15(e) of Section B of Appendix 2 to Annex 2-B of
the USMCA; and
(v) any additional subordinate category that is
necessary to carry out section 202 and section 202A
consistent with the USMCA.
(B) Modifications.--
(i) 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 subparagraph (A), other than the
provisions of chapters 50 through 63 of the USMCA.
(ii) Special rule for textiles.--Notwithstanding clause
(i), and subject to the consultation and layover provisions
of section 104, the President may proclaim--
(I) such modifications to the provisions proclaimed
under the authority of subparagraph (A) as are
necessary to implement an agreement with one or more
USMCA countries pursuant to article 6.4 of the USMCA;
and
(II) before the end of the 1-year period beginning
on the date on which the USMCA enters into force,
modifications to correct any typographical, clerical,
or other nonsubstantive technical error regarding the
provisions of chapters 50 through 63 of the USMCA.
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, that 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 International Trade Commission, which shall hold a
public hearing on the proposed action before providing advice
regarding the proposed action;
(2) the President has submitted to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House of
Representatives a report that sets forth--
(A) the proposed action 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 the committees referred to
in paragraph (2) regarding the proposed action during the period
referred to in paragraph (3).
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
(a) United States Section of Secretariat.--
(1) Establishment or designation of office.--The President is
authorized to establish or designate within the Department of
Commerce an office to serve as the United States Section of the
Secretariat established under article 30.6 of the USMCA.
(2) Functions and administrative assistance.--The office
established or designated under paragraph (1), subject to the
oversight of the interagency group established under section
411(c)(2), shall--
(A) carry out its functions within the Secretariat to
facilitate the operation of the USMCA, including the operation
of section D of chapter 10 and chapter 31 of the USMCA; and
(B) provide administrative assistance to--
(i) panels established under chapter 31 of the USMCA,
including under Annex 31-A (relating to the Facility-
Specific Rapid Response Labor Mechanism);
(ii) technical advisers and experts provided for under
chapter 31 of the USMCA;
(iii) binational panels and extraordinary challenge
committees established under section D of chapter 10 of the
USMCA; and
(iv) binational panels and extraordinary challenge
committees established under NAFTA for matters covered by
article 34.1 of the USMCA (relating to transition from
NAFTA).
(3) Treatment of office under freedom of information act.--The
office established or designated under paragraph (1) shall not be
considered 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 2020 to the
Department of Commerce $2,000,000 for--
(1) the operations of the office established or designated
under subsection (a)(1); and
(2) the payment of the United States share of the expenses of--
(A) panels established under chapter 31 of the USMCA,
including under Annex 31-A (relating to the Facility-Specific
Rapid Response Labor Mechanism);
(B) binational panels and extraordinary challenge
committees established under section D of chapter 10 of the
USMCA; and
(C) binational panels and extraordinary challenge
committees established under NAFTA for matters covered by
article 34.1 of the USMCA (relating to transition from NAFTA).
(c) Reimbursement of Certain Expenses.--If the Canadian Section or
the Mexican Section of the Secretariat provides funds to the United
States Section during any fiscal year as reimbursement for expenses in
connection with dispute settlement proceedings under section D of
chapter 10 or chapter 31 of the USMCA, or under chapter 19 of NAFTA,
the United States Section may, notwithstanding section 3302 of title
31, United States Code, retain and use such funds to carry out the
functions described in subsection (a)(2).
SEC. 106. TRADE REPRESENTATIVE AUTHORITY.
If a country (other than the United States) that has signed the
USMCA does not enact implementing legislation, the Trade Representative
is authorized to enter into negotiations with the other country that
has signed the USMCA to consider how the applicable provisions of the
USMCA can come into force with respect to the United States and that
other country as promptly as possible.
SEC. 107. EFFECTIVE DATE.
(a) In General.--Sections 1 through 3 and this title (other than
section 103(c)) shall take effect on the date of the enactment of this
Act.
(b) Proclamation Authority.--Section 103(c) shall take effect on
the date on which the USMCA enters into force.
TITLE II--CUSTOMS PROVISIONS
SEC. 201. EXCLUSION OF ORIGINATING GOODS OF USMCA COUNTRIES FROM
SPECIAL AGRICULTURE SAFEGUARD AUTHORITY.
(a) In General.--Section 405(e) of the Uruguay Round Agreements Act
(19 U.S.C. 3602(e)) is amended to read as follows:
``(e) Exclusion of Originating Goods of USMCA Countries.--
``(1) In general.--The President shall exempt from any duty
imposed under this section any good that qualifies as an
originating good under section 202 of the United States-Mexico-
Canada Agreement Implementation Act of a USMCA country with respect
to which preferential tariff treatment is provided under the USMCA.
``(2) Definitions.--In this subsection, the terms `preferential
tariff treatment', `USMCA', and `USMCA country' have the meanings
given those terms in section 3 of the United States-Mexico-Canada
Agreement Implementation Act.''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a good entered for consumption,
or withdrawn from warehouse for consumption, on or after that
date.
(2) Transition from nafta treatment.--In the case of a good
entered for consumption, or withdrawn from warehouse for
consumption, before the date on which the USMCA enters into force--
(A) the amendment made by subsection (a) to section 405(e)
of the Uruguay Round Agreements Act (19 U.S.C. 3602(e)) shall
not apply with respect to the good; and
(B) section 405(e) of such Act, as in effect on the day
before that date, shall continue to apply on and after that
date with respect to the good.
SEC. 202. RULES OF ORIGIN.
(a) Definitions.--In this section:
(1) Aquaculture.--The term ``aquaculture'' means the farming of
aquatic organisms, including fish, molluscs, crustaceans, other
aquatic invertebrates, and aquatic plants from seed stock such as
eggs, fry, fingerlings, or larvae, by intervention in the rearing
or growth processes to enhance production such as regular stocking,
feeding, or protection from predators.
(2) Customs valuation agreement.--The term ``Customs Valuation
Agreement'' means 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 (19 U.S.C.
3511(d)(8)).
(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) Good wholly obtained or produced entirely in the territory
of one or more usmca countries.--The term ``good wholly obtained or
produced entirely in the territory of one or more USMCA countries''
means any of the following:
(A) A mineral good or other naturally occurring substance
extracted or taken from the territory of one or more USMCA
countries.
(B) A plant, plant good, vegetable, or fungus grown,
cultivated, harvested, picked, or gathered in the territory of
one or more USMCA countries.
(C) A live animal born and raised in the territory of one
or more USMCA countries.
(D) A good obtained in the territory of one or more USMCA
countries from a live animal.
(E) An animal obtained by hunting, trapping, fishing,
gathering, or capturing in the territory of one or more USMCA
countries.
(F) A good obtained in the territory of one or more USMCA
countries from aquaculture.
(G) A fish, shellfish, or other marine life taken from the
sea, seabed, or subsoil outside the territory of one or more
USMCA countries and outside the territorial sea of any country
that is not a USMCA country by--
(i) a vessel that is registered or recorded with a
USMCA country and flying the flag of that country; or
(ii) a vessel that is documented under the laws of the
United States.
(H) A good produced on board a factory ship from goods
referred to in subparagraph (G), if such factory ship--
(i) is registered or recorded with a USMCA country and
flies the flag of that country; or
(ii) is a vessel that is documented under the laws of
the United States.
(I) A good, other than a good referred to in subparagraph
(G), that is taken by a USMCA country, or a person of a USMCA
country, from the seabed or subsoil outside the territory of a
USMCA country, if that USMCA country has the right to exploit
such seabed or subsoil.
(J) Waste and scrap derived from--
(i) production in the territory of one or more USMCA
countries; or
(ii) used goods collected in the territory of one or
more USMCA countries, if such goods are fit only for the
recovery of raw materials.
(K) A good produced in the territory of one or more USMCA
countries exclusively from goods referred to in any of
subparagraphs (A) through (J), or from their derivatives, at
any stage of production.
(5) Indirect material.--The term ``indirect material'' means a
material used or consumed in the production, testing, or inspection
of a good but not physically incorporated into the good, or a
material used or consumed 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 or consumed in the
maintenance of equipment or buildings;
(D) lubricants, greases, compounding materials, and other
materials used or consumed in production or 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 material that is not incorporated into the
good, if the use of the material in the production of the good
can reasonably be demonstrated to be a part of that production.
(6) Intermediate material.--The term ``intermediate material''
means a material that is self-produced, used or consumed in the
production of a good, and designated as an intermediate material
pursuant to subsection (d)(9).
(7) Material.--The term ``material'' means a good that is used
or consumed in the production of another good and includes a part
or an ingredient.
(8) Net cost.--The term ``net cost'' means total cost minus
sales promotion, marketing, and after-sales service costs,
royalties, shipping and packing costs, and nonallowable interest
costs that are included in the total cost.
(9) Net cost of a good.--The term ``net cost of a good'' means
the net cost that can be reasonably allocated to a good using one
of the methods set forth in subsection (d)(7).
(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 in which the producer is
located.
(11) Nonoriginating good or nonoriginating material.--The term
``nonoriginating good'' or ``nonoriginating material'' means a good
or material, as the case may be, that does not qualify as
originating under this section.
(12) Originating good; originating material.--The term
``originating good'' or ``originating material'' means a good or
material, as the case may be, that qualifies as originating under
this section.
(13) Packaging materials and containers.--The term ``packaging
materials and containers'' means materials and containers in which
a good is packaged for retail sale.
(14) Packing materials and containers.--The term ``packing
materials and containers'' means materials and containers that are
used to protect a good during transportation.
(15) Producer.--The term ``producer'' means a person who
engages in the production of a good.
(16) Production.--The term ``production'' means--
(A) growing, cultivating, raising, mining, harvesting,
fishing, trapping, hunting, capturing, breeding, extracting,
manufacturing, processing, or assembling a good; or
(B) the farming of aquatic organisms through aquaculture.
(17) Reasonably allocate.--The term ``reasonably allocate''
means to apportion in a manner appropriate to the circumstances.
(18) Recovered material.--The term ``recovered material'' means
a material in the form of individual parts that are the result of--
(A) the disassembly of a used good into individual parts;
and
(B) the cleaning, inspecting, testing, or other processing
that is necessary for improvement to sound working condition of
such individual parts.
(19) Remanufactured good.--The term ``remanufactured good''
means a good classified in the HTS under any of chapters 84 through
90 or under heading 9402, other than a good classified under
heading 8418, 8509, 8510, 8516, or 8703 or subheading 8414.51,
8450.11, 8450.12, 8508.11, or 8517.11, that--
(A) is entirely or partially composed of recovered
materials;
(B) has a life expectancy similar to, and performs in a
manner that is the same as or similar to, such a good when new;
and
(C) has a factory warranty similar to that applicable to
such a good when new.
(20) Royalties.--The term ``royalties'' means payments of any
kind, including payments under technical assistance or similar
agreements, made as consideration for the use of, or right to use,
a copyright, literary, artistic, or scientific work, patent,
trademark, design, model, plan, or secret formula or secret
process, excluding payments under technical assistance or similar
agreements that can be related to a specific service such as--
(A) personnel training, without regard to where the
training is performed; or
(B) if performed in the territory of one or more USMCA
countries, engineering, tooling, die-setting, software design
and similar computer services, or other services.
(21) Sales promotion, marketing, and after-sales service
costs.--The term ``sales promotion, marketing, and after-sales
service costs'' means the costs related to sales promotion,
marketing, and after-sales service for the following:
(A) Sales and marketing promotion, media advertising,
advertising and market research, promotional and demonstration
materials, exhibits, sales conferences, trade shows,
conventions, banners, marketing displays, free samples, sales,
marketing, and after-sales service literature (product
brochures, catalogs, technical literature, price lists, service
manuals, and sales aid information), establishment and
protection of logos and trademarks, sponsorships, wholesale and
retail charges, and entertainment.
(B) Sales and marketing incentives, consumer, retailer, or
wholesaler rebates, and merchandise incentives.
(C) Salaries and wages, sales commissions, bonuses,
benefits (such as medical, insurance, and pension benefits),
traveling and living expenses, and membership and professional
fees for sales promotion, marketing, and after-sales service
personnel.
(D) Product liability insurance.
(E) Rent and depreciation of sales promotion, marketing,
and after-sales service offices and distribution centers.
(F) Payments by the producer to other persons for warranty
repairs.
(G) If the costs are identified separately for sales
promotion, marketing, or after-sales service of goods on the
financial statements or cost accounts of the producer, the
following:
(i) Property insurance premiums, taxes, utilities, and
repair and maintenance of sales promotion, marketing, and
after-sales service offices and distribution centers.
(ii) Recruiting and training of sales promotion,
marketing, and after-sales service personnel, and after-
sales training of customers' employees.
(iii) Office supplies for sales promotion, marketing,
and after-sales service of goods.
(iv) Telephone, mail, and other communications.
(22) Self-produced material.--The term ``self-produced
material'' means a material that is produced by the producer of a
good and used in the production of that good.
(23) Shipping and packing costs.--The term ``shipping and
packing costs'' means the costs incurred in packing a good for
shipment and shipping the good from the point of direct shipment to
the buyer, excluding the costs of preparing and packaging the good
for retail sale.
(24) Territory.--The term ``territory'', with respect to a
USMCA country, has the meaning given that term in section C of
chapter 1 of the USMCA.
(25) Total cost.--
(A) In general.--The term ``total cost''--
(i) means all product costs, period costs, and other
costs for a good incurred in the territory of one or more
USMCA countries; and
(ii) does not include--
(I) profits that are earned by the producer of the
good, regardless of whether the costs are retained by
the producer or paid out to other persons as dividends;
or
(II) taxes paid on those profits, including capital
gains taxes.
(B) Other definitions.--In this paragraph:
(i) Other costs.--The term ``other costs'' means all
costs recorded on the books of the producer that are not
product costs or period costs, such as interest.
(ii) Period costs.--The term ``period costs'' means
costs, other than product costs, that are expensed in the
period in which they are incurred, such as selling expenses
and general and administrative expenses.
(iii) Product costs.--The term ``product costs'' means
costs that are associated with the production of a good,
including the value of materials, direct labor costs, and
direct overhead.
(26) Transaction value.--The term ``transaction value'' means
the price--
(A) actually paid or payable for a good or material with
respect to a transaction of a producer; and
(B) adjusted in accordance with the principles set forth in
paragraphs 1, 3, and 4 of article 8 of the Customs Valuation
Agreement.
(27) USMCA country.--The term ``USMCA country'' means the
United States, Canada, or Mexico for such time as the USMCA is in
force with respect to Canada or Mexico, and the United States
applies the USMCA to Canada or Mexico.
(28) Value.--The term ``value'' means the value of a good or
material for purposes of calculating customs duties or applying
this section.
(b) 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 chapter, heading, or subheading, that reference
shall be a reference to a chapter, heading, or subheading of the
HTS.
(3) Cost or value.--Any cost or value referred to in this
section with respect to a good shall be recorded and maintained in
accordance with the generally accepted accounting principles
applicable in the territory of the USMCA country in which the good
is produced.
(c) Originating Goods.--
(1) In general.--For purposes of this Act and for purposes of
implementing the preferential tariff treatment provided for under
the USMCA, except as otherwise provided in this section, a good is
an originating good if--
(A) the good is a good wholly obtained or produced entirely
in the territory of one or more USMCA countries;
(B) the good is produced entirely in the territory of one
or more USMCA countries using nonoriginating materials, if the
good satisfies all applicable requirements set forth in Annex
4-B of the USMCA; or
(C) the good is produced entirely in the territory of one
or more USMCA countries, exclusively from originating
materials;
(D) except for a good provided for under any of chapters 61
through 63--
(i) the good is produced entirely in the territory of
one or more USMCA countries;
(ii) one or more of the nonoriginating materials
provided for as parts under the HTS and used in the
production of the good do not satisfy the requirements set
forth in Annex 4-B of the USMCA because--
(I) both the good and its materials are classified
under the same subheading or under the same heading
that is not further subdivided into subheadings; or
(II) the good was imported into the territory of a
USMCA country in an unassembled form or a disassembled
form but was classified as an assembled good pursuant
to rule 2(a) of the General Rules of Interpretation of
the HTS; and
(iii) the regional value content of the good is not
less than 60 percent if the transaction value method is
used, or not less than 50 percent if the net cost method is
used and the good satisfies all other applicable
requirements of this section; or
(E) the good itself, as imported, is listed in table 2.10.1
of the USMCA and is imported into the territory of the United
States from the territory of a USMCA country.
(2) Remanufactured goods.--For purposes of determining whether
a remanufactured good is an originating good, a recovered material
derived in the territory of one or more USMCA countries shall be
treated as originating if the recovered material is used or
consumed in the production of, and incorporated into, the
remanufactured good.
(d) Regional Value Content.--
(1) In general.--Except as provided in paragraph (5), for
purposes of subparagraphs (B) and (D) of subsection (c)(1), the
regional value content of a good shall be calculated, at the choice
of the importer, exporter, or producer of the good, on the basis
of--
(A) the transaction value method described in paragraph
(2); or
(B) the net cost method described in paragraph (3).
(2) Transaction value method.--
(A) In general.--An importer, exporter, or producer of a
good may calculate the regional value content of the good on
the basis of the following transaction value method:
TV-VNM ......................
RVC = ---------- <greek-e> 100
TV ......................
(B) Definitions.--In this paragraph:
(i) RVC.--The term ``RVC'' means the regional value
content of the good, expressed as a percentage.
(ii) TV.--The term ``TV'' means the transaction value
of the good, adjusted to exclude any costs incurred in the
international shipment of the good.
(iii) VNM.--The term ``VNM'' means the value of
nonoriginating materials used by the producer in the
production of the good.
(3) Net cost method.--
(A) In general.--An importer, exporter, or producer of a
good may calculate the regional value content of the good on
the basis of the following net cost method:
NC-VNM ......................
RVC = ---------- <greek-e> 100
NC ......................
(B) Definitions.--In this paragraph:
(i) NC.--The term ``NC'' means the net cost of the
good.
(ii) RVC.--The term ``RVC'' means the regional value
content of the good, expressed as a percentage.
(iii) VNM.--The term ``VNM'' means the value of
nonoriginating materials used by the producer in the
production of the good.
(4) Value of nonoriginating materials.--
(A) In general.--The value of nonoriginating materials used
by the producer in the production of a good shall not, for
purposes of calculating the regional value content of the good
under paragraph (2) or (3), include the value of nonoriginating
materials used or consumed to produce originating materials
that are subsequently used or consumed in the production of the
good.
(B) Special rule for certain components.--The following
components of the value of nonoriginating materials used by the
producer in the production of a good may be counted as
originating content for purposes of determining whether the
good meets the regional value content requirement set forth in
Annex 4-B of the USMCA:
(i) The value of processing the nonoriginating
materials undertaken in the territory of one or more USMCA
countries.
(ii) The value of any originating materials used or
consumed in the production of the nonoriginating materials
undertaken in the territory of one or more USMCA countries.
(5) Net cost method required in certain cases.--An importer,
exporter, or producer of a good shall calculate the regional value
content of the good solely on the basis of the net cost method
described in paragraph (3) if the rule for the good set forth in
Annex 4-B of the USMCA includes a regional value content
requirement not based on the transaction value method described in
paragraph (2).
(6) Net cost method allowed for adjustments.--
(A) In general.--If an importer, exporter, or producer of a
good calculates the regional value content of the good on the
basis of the transaction value method described in paragraph
(2) and a USMCA country subsequently notifies the importer,
exporter, or producer, during the course of a verification
conducted in accordance with chapter 5 or 6 of the USMCA, that
the transaction value of the good or the value of any material
used in the production of the good must be adjusted or is
unacceptable under article 1 of the Customs Valuation
Agreement, the importer, exporter, or producer may calculate
the regional value content of the good on the basis of the net
cost method.
(B) Review of adjustment.--Nothing in subparagraph (A)
shall be construed to prevent any review or appeal available in
accordance with article 5.15 of the USMCA with respect to an
adjustment to or a rejection of--
(i) the transaction value of a good; or
(ii) the value of any material used in the production
of a good.
(7) Calculating net cost.--The producer of a good may,
consistent with regulations implementing this section, calculate
the net cost of the good under paragraph (3) by--
(A) calculating the total cost incurred with respect to all
goods produced by that producer, subtracting any sales
promotion, marketing, and after-sales services costs,
royalties, shipping and packing costs, and nonallowable
interest costs that are included in the total cost of those
goods, and then reasonably allocating the resulting net cost of
those goods to the good;
(B) calculating the total cost incurred with respect to all
goods produced by that producer, reasonably allocating the
total cost to the good, and 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
good; or
(C) reasonably allocating each cost that is part of the
total cost incurred with respect to the good so that the
aggregate of those costs does not include any sales promotion,
marketing, and after-sales service costs, royalties, shipping
and packing costs, and nonallowable interest costs.
(8) Value of materials used in production.--For purposes of
calculating the regional value content of a good under this
subsection, applying the de minimis rules under subsection (f), and
calculating the value of nonoriginating components in a set under
subsection (m), the value of a material used in the production of a
good is--
(A) in the case of a material that is imported by the
producer of the good, the transaction value of the material at
the time of importation, including the costs incurred in the
international shipment of the material;
(B) in the case of a material acquired in the territory in
which the good is produced--
(i) the price paid or payable by the producer in the
USMCA country where the producer is located;
(ii) the value as determined under subparagraph (A), as
set forth in regulations prescribed by the Secretary of the
Treasury providing for the application of transaction value
in the absence of an importation by the producer; or
(iii) the earliest ascertainable price paid or payable
in the territory of the country; or
(C) in the case of a self-produced material, 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 or equal to the profit
that is usually reflected in the sale of goods of the same
class or kind as the material.
(9) Intermediate materials.--
(A) In general.--Any self-produced material that is used in
the production of a good may be designated by the producer of
the good as an intermediate material for purposes of
calculating the regional value content of the good under
paragraph (2) or (3).
(B) Materials used in production of intermediate
materials.--If a self-produced material is designated as an
intermediate material under subparagraph (A) for purposes of
calculating a regional value content requirement, no other
self-produced material subject to a regional value content
requirement used or consumed in the production of that
intermediate material may be designated by the producer as an
intermediate material.
(10) Further adjustments to value of materials.--The following
expenses, if included in the value of a nonoriginating material
calculated under paragraph (8), may be deducted from the value of
the nonoriginating material:
(A) The costs of freight, insurance, packing, and all other
costs incurred in transporting the material to the location of
the producer.
(B) Duties, taxes, and customs brokerage fees on the
material paid in the territory of one or more USMCA countries,
other than duties or taxes that are waived, refunded,
refundable, or otherwise recoverable, including credit against
duty or tax paid or payable.
(C) 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.
(e) Accumulation.--
(1) Producers.--A good that is produced in the territory of one
or more USMCA countries, by one or more producers, is an
originating good if the good satisfies the requirements of
subsection (c) and all other applicable requirements of this
section.
(2) Originating materials used in production of goods of a
usmca country.--Originating materials from the territory of one or
more USMCA countries that are used in the production of a good in
the territory of another USMCA country shall be considered to
originate in the territory of such other USMCA country.
(3) Production undertaken on nonoriginating materials used in
the production of goods.--In determining whether a good is an
originating good under this section, production undertaken on
nonoriginating material in the territory of one or more USMCA
countries by one or more producers shall contribute to the
originating status of the good, regardless of whether that
production is sufficient to confer originating status to the
nonoriginating material.
(f) De Minimis Amounts of Nonoriginating Materials.--
(1) In general.--Except as provided in paragraphs (2) through
(4), a good that does not undergo a change in tariff classification
or satisfy a regional value content requirement set forth in Annex
4-B of the USMCA is an originating good if--
(A) the value of all nonoriginating materials that are used
in the production of the good, and do not undergo the
applicable change in tariff classification set forth in Annex
4-B of the USMCA--
(i) does not exceed 10 percent of the transaction value
of the good, adjusted to exclude any costs incurred in the
international shipment of the good; or
(ii) does not exceed 10 percent of the total cost 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 for dairy and other products.--Paragraph (1)
does not apply to the following:
(A) A nonoriginating material of headings 0401 through
0406, or a nonoriginating dairy preparation containing over 10
percent by dry weight of milk solids of subheading 1901.90 or
2106.90, used or consumed in the production of a good of
headings 0401 through 0406.
(B) A nonoriginating material of headings 0401 through
0406, or nonoriginating dairy preparation containing over 10
percent by dry weight of milk solids of subheading 1901.90 or
2106.90, used or consumed in the production of any of the
following goods:
(i) Infant preparations containing over 10 percent by
dry weight of milk solids, of subheading 1901.10.
(ii) Mixes and doughs containing over 25 percent by dry
weight of butterfat, not put up for retail sale, of
subheading 1901.20.
(iii) A dairy preparation containing over 10 percent by
dry weight of milk solids, of subheading 1901.90 or
2106.90.
(iv) A good of heading 2105.
(v) Beverages containing milk of subheading 2202.90.
(vi) Animal feeds containing over 10 percent by dry
weight of milk solids of subheading 2309.90.
(C) A nonoriginating material of heading 0805, or any of
subheadings 2009.11 through 2009.39, used or consumed in the
production of a good of subheadings 2009.11 through 2009.39, or
a fruit or vegetable juice of any single fruit or vegetable,
fortified with minerals or vitamins, concentrated or
unconcentrated, of subheading 2106.90 or 2202.90.
(D) A nonoriginating material of chapter 9 used or consumed
in the production of instant coffee, not flavored, of
subheading 2101.11.
(E) A nonoriginating material of chapter 15 used or
consumed in the production of a good of heading 1507, 1508,
1512, 1514, or 1515.
(F) A nonoriginating material of heading 1701 used or
consumed in the production of a good of any of headings 1701
through 1703.
(G) A nonoriginating material of chapter 17 or heading 1805
used in the production of a good of subheading 1806.10.
(H) Nonoriginating peaches, pears, or apricots of chapter 8
or 20, used in the production of a good of heading 2008.
(I) A nonoriginating single juice ingredient of heading
2009 used or consumed in the production of a good of--
(i) subheading 2009.90, or tariff item 2106.90.54
(concentrated mixtures of fruit or vegetable juice,
fortified with minerals or vitamins); or
(ii) tariff item 2202.99.37 (mixtures of fruit or
vegetable juices, fortified with minerals or vitamins).
(J) A nonoriginating material of any of headings 2203
through 2208 used or consumed in the production of a good
provided for under heading 2207 or 2208.
(3) Goods provided for under chapters 1 through 27.--Paragraph
(1) does not apply to a nonoriginating material used or consumed in
the production of a good provided for in chapters 1 through 27
unless the nonoriginating material is provided for in a different
subheading than the subheading of the good for which origin is
being determined.
(4) Textile or apparel goods.--
(A) Goods classified under chapters 50 through 60.--Except
as provided in subparagraph (C), a textile or apparel good
provided for in any of chapters 50 through 60 or heading 9619
that is not an originating good because certain nonoriginating
materials used in the production of the good do not undergo an
applicable change in tariff classification set forth in Annex
4-B of the USMCA, shall be considered to be an originating good
if the total weight of all such materials, including
elastomeric yarns, is not more than 10 percent of the total
weight of the good and the good meets all other applicable
requirements of this section.
(B) Goods classified under chapters 61 through 63.--Except
as provided in subparagraph (C), a textile or apparel good
provided for in chapter 61, 62, or 63 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 forth in Annex 4-B of the
USMCA shall be considered to be an originating good if the
total weight of all such fibers or yarns in the component,
including elastomeric yarns, is not more than 10 percent of the
total weight of the component and the good meets all other
applicable requirements of this section.
(C) Goods containing nonoriginating elastomeric yarns.--
(i) Goods classified under chapters 50 through 60 or
heading 9619 .--A textile or apparel good described in
subparagraph (A) containing nonoriginating elastomeric
yarns shall be considered to be an originating good only if
the nonoriginating elastomeric yarns contained in the good
do not exceed 7 percent of the total weight of the good.
(ii) Goods classified under chapters 61 through 63.--A
textile or apparel good described in subparagraph (B)
containing nonoriginating elastomeric yarns shall be
considered to be an originating good only if the
nonoriginating elastomeric yarns contained in the component
of the good that determines the tariff classification of
the good do not exceed 7 percent of the total weight of the
good.
(g) Fungible Goods and Materials.--
(1) Fungible materials used in production.--Subject to
paragraph (3), if originating and nonoriginating fungible materials
are used or consumed in the production of a good, the determination
of whether the materials are originating may be made on the basis
of any of the inventory management methods set forth in regulations
implementing this section.
(2) Fungible goods commingled and exported.--Subject to
paragraph (3), if originating and nonoriginating fungible goods are
commingled and exported in the same form, the determination of
whether the goods are originating may be made on the basis of any
of the inventory management methods set forth in regulations
implementing this section.
(3) Use of inventory management method.--A person that selects
an inventory management method for purposes of paragraph (1) or (2)
shall use that inventory management method throughout the fiscal
year of the person.
(h) Accessories, Spare Parts, Tools, and Instructional or Other
Information Materials.--
(1) In general.--Subject to paragraph (2), accessories, spare
parts, tools, or instructional or other information materials
delivered with a good shall--
(A) be treated as originating if the good is an originating
good;
(B) be disregarded in determining whether a good is a good
wholly obtained or produced entirely in the territory of one or
more USMCA countries or satisfies a process or change in tariff
classification set forth in Annex 4-B of the USMCA; and
(C) be taken into account as originating or nonoriginating
materials, as the case may be, in calculating any applicable
regional value content of the good set forth in Annex 4-B of
the USMCA.
(2) Conditions.--Paragraph (1) shall apply only if--
(A) the accessories, spare parts, tools, or instructional
or other information materials are classified with and
delivered with, but not invoiced separately from, the good; and
(B) the types, quantities, and value of the accessories,
spare parts, tools, or instructional or other information
materials are customary for the good.
(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 of the nonoriginating materials used in the production of
the good undergo the applicable process or change in tariff
classification requirement set forth in Annex 4-B of the USMCA, or
whether the good is a good wholly obtained or produced entirely in the
territory of one or more USMCA countries. If the good is subject to a
regional value content requirement set forth in that Annex, 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 a good is an originating good.
(k) Indirect Materials.--An indirect material shall be treated as
an originating material without regard to where it is produced.
(l) Transit and Transshipment.--A good that has undergone
production necessary to qualify as an originating good under subsection
(c) shall not be considered to be an originating good if, subsequent to
that production, the good--
(1) undergoes further production or any other operation outside
the territory of a USMCA country, other than--
(A) unloading, reloading, separation from a bulk shipment,
storing, labeling, or marking, as required by a USMCA country;
or
(B) any other operation necessary to preserve the good in
good condition or to transport the good to the territory of the
importing USMCA country; or
(2) does not remain under the control of customs authorities in
a country other than a USMCA country.
(m) Goods Classifiable as Goods Put Up in Sets.--
(1) Goods other than textile or apparel goods.--Notwithstanding
the rules set forth in Annex 4-B of the USMCA, goods classifiable
as goods put up in sets for retail sale as provided for in rule 3
of the General Rule of Interpretation of the HTS shall not be
considered to be originating goods unless--
(A) each of the goods in the set is an originating good; or
(B) the total value of the nonoriginating goods in the set
does not exceed 10 percent of the value of the set.
(2) Textile or apparel goods.--Notwithstanding the rules set
forth in Annex 4-B of the USMCA, goods classifiable as goods put up
in sets for retail sale as provided for in rule 3 of the General
Rule of Interpretation of the HTS shall not be considered to be
originating goods unless--
(A) each of the goods in the set is an originating good; or
(B) the total value of the nonoriginating goods in the set
does not exceed 10 percent of the value of the set.
(n) Nonqualifying Operations.--A good shall not be considered to be
an originating good merely by reason of--
(1) mere dilution with water or another substance that does not
materially alter the characteristics of the good; or
(2) any production or pricing practice with respect to which it
may be demonstrated, by a preponderance of the evidence, that the
object of the practice was to circumvent this section.
(o) Effective Date.--
(1) In general.--This section shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a good entered for consumption,
or withdrawn from warehouse for consumption, on or after that
date.
(2) Transition from nafta treatment.--Section 202 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3332),
as in effect on the day before the date on which the USMCA enters
into force, shall continue to apply on and after that date with
respect to a good entered for consumption, or withdrawn from
warehouse for consumption, before that date.
SEC. 202A. SPECIAL RULES FOR AUTOMOTIVE GOODS.
(a) Definitions.--In this section:
(1) Alternative staging regime.--The term ``alternative staging
regime'' means the application, pursuant to subsection (d), of the
requirements of article 8 of the automotive appendix to the
production of covered vehicles to allow producers of such vehicles
to bring such production into compliance with the requirements of
articles 2 through 7 of that appendix.
(2) Alternative staging regime period.--The term ``alternative
staging regime period'' means the period during which the
alternative staging regime is in effect.
(3) Automotive appendix.--The term ``automotive appendix''
means the Appendix to Annex 4-B of the USMCA (relating to the
product-specific rules of origin for automotive goods).
(4) Automotive good.--The term ``automotive good'' means--
(A) a covered vehicle; or
(B) a part, component, or material listed in table A.1,
A.2, B, C, D, or E of the automotive appendix.
(5) Automotive rules of origin.--The term ``automotive rules of
origin'' means the rules of origin for automotive goods set forth
in the automotive appendix.
(6) Commissioner.--The term ``Commissioner'' means the
Commissioner of U.S. Customs and Border Protection.
(7) Covered vehicle.--The term ``covered vehicle'' means a
passenger vehicle, light truck, or heavy truck.
(8) Interagency committee.--The term ``interagency committee''
means the interagency committee established under subsection
(b)(1).
(9) Passenger vehicle; light truck; heavy truck.--The terms
``passenger vehicle'', ``light truck'', and ``heavy truck'' have
the meanings given those terms in article 1 of the automotive
appendix.
(10) USMCA country.--The term ``USMCA country'' means the
United States, Canada, or Mexico for such time as the USMCA is in
force with respect to Canada or Mexico, and the United States
applies the USMCA to Canada or Mexico.
(b) Establishment of Interagency Committee.--
(1) In general.--Not later than 30 days after the date of the
enactment of this Act, the President shall establish an interagency
committee--
(A) to provide advice, as appropriate, on the
implementation, enforcement, and modification of provisions of
the USMCA that relate to automotive goods, including the
alternative staging regime; and
(B) to review the operation of the USMCA with respect to
trade in automotive goods, including--
(i) the economic effects of the automotive rules of
origin on the United States economy, workers, and
consumers; and
(ii) the impact of new technology on such rules of
origin.
(2) Members.--The members of the interagency committee shall be
the following:
(A) The Trade Representative.
(B) The Secretary of Commerce.
(C) The Commissioner.
(D) The Secretary of Labor.
(E) The Chair of the International Trade Commission.
(F) Any other members determined to be necessary by the
Trade Representative.
(3) Chair.--The chair of the interagency committee shall be the
Trade Representative.
(4) Use of information.--
(A) Information sharing.--Notwithstanding any other
provision of law, the members of the interagency committee may
exchange information for purposes of carrying out this section.
(B) Confidentiality of information.--The interagency
committee and any Federal agency represented on the interagency
committee may not disclose to the public any confidential
documents or information received in the course of carrying out
this section, except information aggregated to preserve
confidentiality and used in the reports described in subsection
(g).
(c) Certification Requirements.--
(1) Certification relating to labor value content
requirements.--
(A) In general.--A covered vehicle shall be eligible for
preferential tariff treatment only if the producer of the
covered vehicle--
(i) provides a certification to the Commissioner that
the production of covered vehicles by the producer meets
the labor value content requirements, including the high-
wage material and manufacturing expenditures, high-wage
technology expenditures, and high-wage assembly
expenditures, as set forth in article 7 of the automotive
appendix or, if the producer is subject to the alternative
staging regime, articles 7 and 8 of that appendix, and
includes the calculations of the producer related to the
labor value content requirements; and
(ii) has information on record to support those
calculations.
(B) Implementation.--For purposes of meeting the
requirements under subparagraph (A)--
(i) the Secretary of Labor, in consultation with the
Commissioner, shall ensure that the certification of a
producer under subparagraph (A)(i) does not contain
omissions or errors before the certification is considered
properly filed; and
(ii) a calculation described in subparagraph (A)(i)
based on a producer's preceding fiscal or calendar year is
valid for the producer's subsequent fiscal or calendar
year, as the case may be, as set forth in articles 7 and 8
of the automotive appendix.
(C) Regulations required.--The Secretary of the Treasury,
in consultation with the Secretary of Labor, shall prescribe
regulations to carry out this paragraph, including regulations
setting forth the procedures and requirements for a producer of
covered vehicles to establish that the producer meets the labor
value content requirements for preferential tariff treatment.
(2) Certification relating to steel and aluminum purchase
requirements.--
(A) In general.--A covered vehicle shall be eligible for
preferential tariff treatment only if the producer of the
covered vehicle--
(i) provides a certification to the Commissioner that
the production of covered vehicles by the producer meets
the steel and aluminum purchase requirements set forth in
article 6 of the automotive appendix or, if the producer is
subject to the alternative staging regime, articles 6 and 8
of that appendix; and
(ii) has information on record to support the
calculations relied on for the certification.
(B) Implementation.--For purposes of meeting the
requirements under subparagraph (A)--
(i) the Commissioner shall ensure that the
certification of a producer under subparagraph (A)(i) does
not contain omissions or errors before the certification is
considered properly filed; and
(ii) a calculation described in subparagraph (A)(ii)
based on a producer's preceding fiscal or calendar year is
valid for the producer's subsequent fiscal or calendar
year, as the case may be, as set forth in articles 6 and 8
of the automotive appendix.
(C) Regulations required.--The Secretary of the Treasury
shall prescribe regulations to carry out this paragraph,
including regulations setting forth the procedures and
requirements for a producer of covered vehicles to establish
that the producer meets the steel and aluminum purchase
requirements for preferential tariff treatment.
(d) Alternative Staging Regime.--
(1) Publication of requirements.--Not later than 90 days after
the date of the enactment of this Act, the Trade Representative, in
consultation with the interagency committee, shall publish in the
Federal Register requirements, procedures, and guidance required to
implement the alternative staging regime, including with respect to
the following:
(A) The procedures, calculation methodology, timeframe,
specific regional value content thresholds, and other minimum
requirements, consistent with article 8 of the automotive
appendix, with which a producer of covered vehicles subject to
the alternative staging regime is required to comply during the
alternative staging regime period for such vehicles to be
eligible for preferential tariff treatment pursuant to the
alternative staging regime.
(B) The date by which requests for the alternative staging
regime are required to be submitted.
(C) The information a producer of passenger vehicles or
light trucks is required to provide, in the producer's request
to use the alternative staging regime, to demonstrate the
actions that the producer will take to be prepared to meet all
the requirements set forth in articles 2 through 7 of the
automotive appendix after the alternative staging regime period
has expired, including the following:
(i) A statement identifying which of the requirements
set forth in articles 2 through 7 of the automotive
appendix that the producer expects it will be unable to
meet upon entry into force of the USMCA based on current
business plans.
(ii) A statement indicating whether the passenger
vehicles or light trucks for which the producer seeks to
use the alternative staging regime account for 10 percent
or less, or more than 10 percent, of the total production
of passenger vehicles or light trucks, as the case may be,
in USMCA countries by the producer during the 12-month
period preceding the date on which the USMCA enters into
force, or the average of such production during the 36-
month period preceding that date, whichever is greater.
(iii) In the case of a producer that seeks to use the
alternative staging regime for more than 10 percent of the
producer's total production of passenger vehicles or light
trucks, as the case may be, in USMCA countries--
(I) a detailed and credible plan describing with
specificity the actions the producer intends to take to
bring production of the passenger vehicles or light
trucks, as the case may be, into compliance with the
requirements set forth in articles 2 through 7 of the
automotive appendix after the alternative staging
regime period expires; and
(II) a statement indicating the time period for
which the producer is requesting to use the alternative
staging regime, if that time period is greater than 5
years after the USMCA enters into force.
(D) The procedures for accepting and reviewing requests for
the alternative staging regime, including that the Trade
Representative will--
(i) notify a producer of any deficiencies in the
request of the producer that would result in a denial of
the request not later than 30 days after the request is
submitted; and
(ii) provide producers the opportunity to submit
supplemental information.
(E) The criteria the Trade Representative, in consultation
with the interagency committee, will consider when determining
whether to approve a request for the alternative staging
regime. Such criteria shall only include elements necessary for
the producer to demonstrate the producer's ability to meet the
requirements specified in subparagraphs (A) and (B). The
criteria shall also describe the information to meet those
requirements in sufficient detail to allow the producer to
identify the information necessary to complete a request for
the alternative staging regime.
(F) The opportunity for a producer described in
subparagraph (C)(iii) to modify the producer's request for the
alternative staging regime.
(2) Review of requests for alternative staging regime.--
(A) In general.--In reviewing the request of a producer of
passenger vehicles or light trucks for the alternative staging
regime, the Trade Representative, in consultation with the
interagency committee, shall determine--
(i) whether the request covers 10 percent or less, or
more than 10 percent, of the production of passenger
vehicles or light trucks in USMCA countries by the
producer; and
(ii) whether the producer has identified with
specificity which of the requirements set forth in articles
2 through 7 of the automotive appendix the producer is
unable to meet based on current business plans.
(B) Approval of alternative staging regime for passenger
vehicle or light truck production not exceeding 10 percent of
north american production.--The Trade Representative shall
authorize the use of the alternative staging regime if the
Trade Representative, in consultation with the interagency
committee, determines that--
(i) the request for the alternative staging regime
covers passenger vehicles or light trucks that do not
exceed 10 percent of the production of passenger vehicles
or lights trucks, as the case may be, in USMCA countries by
the producer; and
(ii) the producer has identified with specificity which
of the requirements set forth in articles 2 through 7 of
the automotive appendix the producer is unable to meet
based on current business plans.
(C) Approval of alternative staging regime for passenger
vehicle or light truck production exceeding 10 percent of north
american production.--The Trade Representative shall authorize
the use of the alternative staging regime if the Trade
Representative, in consultation with the interagency committee,
determines that--
(i) the request for the alternative staging regime
covers more than 10 percent of the production of passenger
vehicles or lights trucks, as the case may be, in USMCA
countries by the producer;
(ii) the producer has identified with specificity which
of the requirements set forth in articles 2 through 7 of
the automotive appendix the producer is unable to meet
based on current business plans; and
(iii) the detailed and credible plan of the producer
submitted under paragraph (1)(C)(iii) is based on
substantial evidence and reasonably calculated to bring the
production of the passenger vehicles or light trucks, as
the case may be, into compliance with the requirements set
forth in articles 2 through 7 of the automotive appendix
after the alternative staging regime period has expired.
(3) Procedures related to reviewing and approving requests.--
(A) Deadline for review.--Not later than 120 days after
receiving a request of a producer for the alternative staging
regime, the Trade Representative, in consultation with the
interagency committee, shall--
(i) review the request;
(ii) make a determination with respect to whether to
authorize the use of the alternative staging regime; and
(iii) provide to each producer a response in writing
stating whether the producer may use the alternative
staging regime.
(B) Establishment of a public list.--The Trade
Representative shall maintain, and update as necessary, a
public list of the producers of covered vehicles that have been
authorized to use the alternative staging regime.
(C) Reporting.--Before a determination is made with respect
to whether to authorize the use of the alternative staging
regime, the Trade Representative shall provide to the
appropriate congressional committees a summary of requests for
the alternative staging regime.
(4) Alternative staging regime review and modification.--
(A) Material changes to circumstances.--
(i) Notification.--If the request of a producer to use
the alternative staging regime for more than 10 percent of
the total production of passenger vehicles or light trucks,
as the case may be, in USMCA countries by the producer has
been granted, the producer shall notify the Trade
Representative and the interagency committee of any
material changes to the information contained in the
request, including any supplemental information relating to
that request, and of any material changes to circumstances,
that will affect the producer's ability to meet any of the
requirements set forth in articles 2 through 7 of the
automotive appendix after the alternative staging regime
period has expired.
(ii) Requests for modification of plans.--
(I) In general.--A producer that submits a
notification under clause (i) with respect to a change
described in that clause may submit to the Trade
Representative and the interagency committee a request
for modification of its plan.
(II) Determination regarding modification.--Not
later than 90 days after receiving a request submitted
under subclause (I), the Trade Representative, in
consultation with the interagency committee, shall--
(aa) review the request;
(bb) make a determination with respect to
whether the modified plan is based on substantial
evidence and reasonably calculated to ensure that
the producer will still be able to meet the
requirements set forth in articles 2 through 7 of
the automotive appendix after the alternative
staging regime period has expired;
(cc) if the Trade Representative makes an
affirmative determination under item (bb), approve
the modified plan; and
(dd) notify the producer in writing of the
determination.
(iii) Inability to meet requirements.--If the Trade
Representative, in consultation with the interagency
committee, determines that the information provided by a
producer under clause (i) demonstrates that the producer
will no longer be able to meet the requirements set forth
in articles 2 through 7 of the automotive appendix after
the alternative staging regime period has expired, the
Trade Representative shall notify the producer in writing,
and no claim for preferential tariff treatment may be made,
on or after the date of the determination, with respect to
a covered vehicle of the producer pursuant to the
alternative staging regime.
(5) Failure to meet requirements for alternative staging
regime.--
(A) In general.--If, at any time, the Trade Representative,
in consultation with the interagency committee, makes a
determination described in subparagraph (B) with respect to a
producer of covered vehicles subject to the alternative staging
regime--
(i) any claim for preferential tariff treatment under
the alternative staging regime for any covered vehicle of
that producer shall be considered invalid; and
(ii) notwithstanding the finality of a liquidation of
an entry, the importer of any covered vehicle of that
producer shall be liable for the duties, taxes, and fees
that would have been applicable to that vehicle if
preferential tariff treatment pursuant to the alternative
staging regime had not applied when the vehicle was entered
for consumption, or withdrawn from warehouse for
consumption, plus interest assessed on or after the date of
entry and before the date of the determination.
(B) Determination described.--A determination described in
this subparagraph is a determination that a producer of covered
vehicles subject to the alternative staging regime--
(i) has failed to take the steps set forth in the
producer's request for the alternative staging regime and,
as a result of that failure, the producer will no longer be
able to meet the requirements set forth in articles 2
through 7 of the automotive appendix after the alternative
staging regime period has expired;
(ii) has provided false or misleading information in
the producer's request; or
(iii) in the case of a producer authorized to use the
alternative staging regime for more than 10 percent of the
total production of passenger vehicles or light trucks in
USMCA countries by the producer, has failed to notify the
Trade Representative under paragraph (4)(A) of material
changes to circumstances that will prevent the producer
from meeting any of the requirements set forth in articles
2 through 7 of the automotive appendix after the
alternative staging regime period has expired.
(e) Verification of Labor Value Content Requirements.--
(1) In general.--As part of a verification conducted under
section 207, the Secretary of the Treasury, in conjunction with the
Secretary of Labor, may conduct a verification of whether a covered
vehicle complies with the labor value content requirements set
forth in article 7 of the automotive appendix or, if the producer
is subject to the alternative staging regime under subsection (d),
articles 7 and 8 of that appendix.
(2) Role of secretary of labor.--In cooperation with the
Secretary of the Treasury, the Secretary of Labor shall participate
in any verification conducted under paragraph (1) by verifying
whether the production of covered vehicles by a producer meets the
high-wage components of the labor value content requirements,
including the wage component of the high-wage material and
manufacturing expenditures, the high-wage technology expenditures,
and the high-wage assembly expenditures, within the meaning given
those terms in article 7 of that appendix.
(3) Role of secretary of the treasury.--The Secretary of the
Treasury shall participate in any verification conducted under
paragraph (1) by verifying--
(A) the components of the labor value content requirements
not covered by paragraph (2), including the annual purchase
value and cost components of the high-wage material and
manufacturing expenditures, within the meaning given those
terms in article 7 of that appendix; and
(B) whether the producer has met the labor value content
requirements.
(4) Actions by secretary of labor.--
(A) In general.--In participating in a verification
conducted under paragraph (1), the Secretary of Labor shall
assist the Secretary of the Treasury to do the following:
(i) Examine, or cause to be examined, upon reasonable
notice, any record (including any statement, declaration,
document, or electronically generated or machine readable
data) described in the notice with reasonable specificity.
(ii) Request information from any officer, employee, or
agent of a producer of automotive goods, as necessary, that
may be relevant with respect to whether the production of
covered vehicles meets the high-wage components of the
labor value content requirements set forth in article 7 of
the automotive appendix or, if the producer is subject to
the alternative staging regime under subsection (d),
articles 7 and 8 of that appendix.
(B) Nature of information requested.--Records and
information that may be examined or requested under
subparagraph (A) may relate to wages, hours, job
responsibilities, and other information in any plant or
facility relied on by a producer of covered vehicles to
demonstrate that the production of such vehicles by the
producer meets the labor value content requirements set forth
in article 7 of the automotive appendix or, if the producer is
subject to the alternative staging regime under subsection (d),
articles 7 and 8 of that appendix.
(5) Whistleblower protections.--
(A) Unlawful acts.--It is unlawful to intimidate, threaten,
restrain, coerce, blacklist, discharge, or in any other manner
discriminate against any person for--
(i) disclosing information to a Federal agency or to
any person relating to a verification under this
subsection; or
(ii) cooperating or seeking to cooperate in a
verification under this subsection.
(B) Enforcement.--The Secretary of the Treasury and the
Secretary of Labor are authorized to take such actions under
existing law, including imposing appropriate penalties and
seeking appropriate injunctive relief, as may be necessary to
ensure compliance with this subsection and as provided for in
existing regulations.
(6) Protests of decisions of u.s. customs and border
protection.--
(A) In general.--If a protest under section 514 of the
Tariff Act of 1930 (19 U.S.C. 1514) of a decision of U.S.
Customs and Border Protection with respect to the eligibility
for preferential tariff treatment of a covered vehicle relates
to the analysis of the Department of Labor relating to the
high-wage components of the labor value content requirements
described in paragraph (1), the Secretary of Labor shall--
(i) conduct an administrative review of the portion of
the decision relating to such requirements; and
(ii) provide the results of that review to the
Commissioner.
(B) No accelerated disposition.--An importer may not
request the accelerated disposition under section 515(b) of the
Tariff Act of 1930 (19 U.S.C. 1515(b)) of a protest against a
decision of the Commissioner described in subparagraph (A).
(f) Administration by Department of Labor.--The Secretary of Labor
is authorized to establish or designate an office within the Department
of Labor to carry out the provisions of this section for which the
Department is responsible.
(g) Review and Reports.--
(1) Periodic review on automotive rules of origin.--
(A) In general.--The Trade Representative, in consultation
with the interagency committee, shall conduct a biennial review
of the operation of the USMCA with respect to trade in
automotive goods, including--
(i) to the extent practicable, a summary of actions
taken by producers to demonstrate compliance with the
automotive rules of origin, use of the alternative staging
regime, enforcement of such rules of origin, and other
relevant matters; and
(ii) whether the automotive rules of origin are
effective and relevant in light of new technology and
changes in the content, production processes, and character
of automotive goods.
(B) Report.--
(i) In general.--The Trade Representative shall submit
to the appropriate congressional committees a report on
each review conducted under subparagraph (A).
(ii) Initial report.--The first report required under
clause (i) shall be submitted not later than 2 years after
the date on which the USMCA enters into force.
(iii) Termination of reporting requirement.--The
requirement to submit reports under clause (i) shall
terminate on the date that is 10 years after the date on
which the USMCA enters into force.
(2) Report by international trade commission.--Not later than 1
year after the submission of the first report required by paragraph
(1)(B), and every 2 years thereafter until the date that is 12
years after the date on which the USMCA enters into force, the
International Trade Commission shall submit to the appropriate
congressional committees and the President a report on--
(A) the economic impact of the automotive rules of origin
on--
(i) the gross domestic product of the United States;
(ii) exports from and imports into the United States;
(iii) aggregate employment and employment opportunities
in the United States;
(iv) production, investment, use of productive
facilities, and profit levels in the automotive industries
and other pertinent industries in the United States
affected by the automotive rules of origin;
(v) wages and employment of workers in the automotive
sector in the United States; and
(vi) the interests of consumers in the United States;
(B) the operation of the automotive rules of origin and
their effects on the competitiveness of the United States with
respect to production and trade in automotive goods, taking
into account developments in technology, production processes,
or other related matters;
(C) whether the automotive rules of origin are relevant in
light of technological changes in the United States; and
(D) such other matters as the International Trade
Commission considers relevant to the economic impact of the
automotive rules of origin, including prices, sales,
inventories, patterns of demand, capital investment,
obsolescence of equipment, and diversification of production in
the United States.
(3) Report by comptroller general.--Not later than 4 years
after the date on which the USMCA enters into force, the
Comptroller General of the United States shall submit to the
Committee on Appropriations and the Committee on Ways and Means of
the House of Representatives and the Committee on Appropriations
and the Committee on Finance of the Senate a report assessing the
effectiveness of United States Government interagency coordination
on implementation, enforcement, and verification of the automotive
rules of origin and the customs procedures of the USMCA with
respect to automotive goods.
(4) Public participation.--Before submitting a report under
paragraph (1)(B) or (2), the agency responsible for the report
shall--
(A) solicit information relating to matters that will be
addressed in the report from producers of automotive goods,
labor organizations, and other interested parties;
(B) provide for an opportunity for the submission of
comments, orally or in writing, from members of the public
relating to such matters; and
(C) after submitting the report, post a version of the
report appropriate for public viewing on a publicly available
internet website for the agency.
(h) Effective Date.--This section shall--
(1) take effect on the date of the enactment of this Act; and
(2) apply with respect to goods entered, or withdrawn from
warehouse for consumption, on or after the date on which the USMCA
enters into force.
SEC. 203. MERCHANDISE PROCESSING FEE.
(a) In General.--Section 13031(b)(10) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)) is amended by
striking subparagraph (B) and inserting the following:
``(B) No fee may be charged under paragraph (9) or (10) of
subsection (a) with respect to goods that qualify as originating goods
under section 202 of the United States-Mexico-Canada Agreement
Implementation Act or qualify for duty-free treatment under Annex 6-A
of the USMCA (as defined in section 3 of that 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.''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a good entered or released on or
after that date.
(2) Transition from nafta treatment.--In the case of a good
entered or released before the date on which the USMCA enters into
force--
(A) the amendments made by subsection (a) to section
13031(b)(10)(B) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(10)(B)) shall not
apply with respect to the good; and
(B) section 13031(b)(10)(B) of such Act, as in effect on
the day before that date, shall continue to apply on and after
that date with respect to the good.
(3) Entered or released defined.--In this subsection, the term
``entered or released'' has the meaning given that term in section
13031(b)(8)(E) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(b)(8)(E)).
SEC. 204. DISCLOSURE OF INCORRECT INFORMATION; FALSE CERTIFICATIONS
OF ORIGIN; DENIAL OF PREFERENTIAL TARIFF TREATMENT.
(a) Disclosure of Incorrect Information.--Section 592 of the Tariff
Act of 1930 (19 U.S.C. 1592) is amended--
(1) in subsection (c), by striking paragraph (5) and inserting
the following:
``(5) Prior disclosure regarding claims under the usmca.--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 202 of the United States-Mexico-Canada Agreement
Implementation Act if the importer, in accordance with regulations
prescribed by the Secretary of the Treasury, promptly makes a
corrected declaration and pays any duties owing with respect to
that good.''; and
(2) by striking subsection (f) and inserting the following:
``(f) False Certifications of Origin Under the USMCA.--
``(1) In general.--Subject to paragraph (2), it is unlawful for
any person to certify falsely, by fraud, gross negligence, or
negligence, in a USMCA certification of origin (as such term is
defined in section 508 of this Act) that a good exported from the
United States qualifies as an originating good under the rules of
origin provided for in section 202 of the United States-Mexico-
Canada Agreement Implementation Act. The procedures and penalties
of this section that apply to a violation of subsection (a) also
apply to a violation of this subsection.
``(2) Prompt and voluntary disclosure of incorrect
information.--No penalty shall be imposed under this subsection if,
promptly after an exporter or producer that issued a USMCA
certification of origin has reason to believe that such
certification contains or is based on incorrect information, the
exporter or producer voluntarily provides written notice of such
incorrect information to every person to whom the certification was
issued.
``(3) Exception.--A person shall not be considered to have
violated paragraph (1) if--
``(A) the information was correct at the time it was
provided in a USMCA certification of origin but was later
rendered incorrect due to a change in circumstances; and
``(B) the person promptly and voluntarily provides written
notice of the change in circumstances to all persons to whom
the person provided the certification.''.
(b) Denial of Preferential Tariff Treatment.--Section 514 of the
Tariff Act of 1930 (19 U.S.C. 1514) is amended--
(1) in subsection (b), by striking ``and article 1904'' and all
that follows through ``Free-Trade Agreement'';
(2) in subsection (c)--
(A) in paragraph (1), in the matter following subparagraph
(D), by striking ``section 202 of the North American Free Trade
Agreement Implementation Act'' and inserting ``section 202 of
the United States-Mexico-Canada Agreement Implementation Act'';
and
(B) in paragraph (2)(E)--
(i) by striking ``section 202 of the North American
Free Trade Agreement Implementation Act'' and inserting
``section 202 of the United States-Mexico-Canada Agreement
Implementation Act''; and
(ii) by striking ``NAFTA Certificate of Origin'' and
inserting ``USMCA certification of origin (as such term is
defined in section 508 of this Act)'';
(3) in subsection (e), by striking ``section 202 of the North
American Free Trade Agreement Implementation Act'' and inserting
``section 202 of the United States-Mexico-Canada Agreement
Implementation Act''; and
(4) by striking subsection (f) and inserting the following:
``(f) Denial of Preferential Tariff Treatment Under the USMCA.--If
U.S. Customs and Border Protection or U.S. Immigration and Customs
Enforcement of the Department of Homeland Security finds indications of
a pattern of conduct by an importer, exporter, or producer of false or
unsupported representations that goods qualify under the rules of
origin provided for in section 202 of the United States-Mexico-Canada
Agreement Implementation Act, U.S. Customs and Border Protection, in
accordance with regulations prescribed by the Secretary of the
Treasury, may suspend preferential tariff treatment under the USMCA (as
defined in section 3 of that Act) to entries of identical goods covered
by subsequent representations by that importer, exporter, or producer
until U.S. Customs and Border Protection determines that
representations of that person are in conformity with such section
202.''.
(c) Effective Date.--
(1) In general.--The amendments made by subsections (a) and (b)
shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a good entered, or exported from
the United States, as the case may be, on or after that date.
(2) Transition from nafta treatment.--In the case of a good
entered, or exported from the United States, as the case may be,
before the date on which the USMCA enters into force--
(A) the amendments made by subsection (a) to section 592 of
the Tariff Act of 1930 (19 U.S.C. 1592) and the amendments made
by subsection (b) to section 514 of such Act (19 U.S.C. 1514)
shall not apply with respect to the good; and
(B) sections 592 and 514 of such Act, as in effect on the
day before that date, shall continue to apply on and after that
date with respect to the good.
(3) Entered defined.--In this subsection, the term ``entered''
includes a withdrawal from warehouse for consumption.
SEC. 205. RELIQUIDATION OF ENTRIES.
(a) In General.--Section 520(d) of the Tariff Act of 1930 (19
U.S.C. 1520(d)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``section 202 of the North American Free
Trade Agreement Implementation Act,'';
(B) by striking ``, or section 203'' and inserting ``,
section 203''; and
(C) by striking ``for which'' and inserting ``, or section
202 of the United States-Mexico-Canada Agreement Implementation
Act (except with respect to any merchandise processing fees),
for which''; and
(2) by striking paragraph (2) and inserting the following:
``(2) copies of all applicable certificates or certifications
of origin; and''.
(b) Effective Date.--
(1) In general.--The amendments made by subsection (a) shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a good entered for consumption,
or withdrawn from warehouse for consumption, on or after that
date.
(2) Transition from nafta treatment.--In the case of a good
entered for consumption, or withdrawn from warehouse for
consumption, before the date on which the USMCA enters into force--
(A) the amendments made by subsection (a) to section 520(d)
of the Tariff Act of 1930 (19 U.S.C. 1520(d)) shall not apply
with respect to the good; and
(B) section 520(d) of such Act, as in effect on the day
before that date, shall continue to apply on and after that
date with respect to the good.
SEC. 206. RECORDKEEPING REQUIREMENTS.
(a) In General.--Section 508 of the Tariff Act of 1930 (19 U.S.C.
1508) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Exports and Imports Relating to USMCA Countries.--
``(1) Definitions.--In this subsection:
``(A) USMCA; usmca country.--The terms `USMCA' and `USMCA
country' have the meanings given those terms in section 3 of
the United States-Mexico-Canada Agreement Implementation Act.
``(B) USMCA certification of origin.--The term `USMCA
certification of origin' means the certification established
under article 5.2.1 of the USMCA that a good qualifies as an
originating good under the USMCA.
``(2) Exports to usmca countries.--Any person who completes a
USMCA certification of origin or provides a written representation
for a good exported from the United States to a USMCA country shall
make, keep, and, pursuant to rules and regulations prescribed by
the Secretary of the Treasury, render for examination and
inspection, all records and supporting documents related to the
origin of the good (including the certification or copies thereof),
including records related to--
``(A) the purchase, cost, value, and shipping of, and
payment for, the good;
``(B) the purchase, cost, value, and shipping of, and
payment for, all materials, including indirect materials, used
in the production of the good; and
``(C) the production of the good in the form in which it
was exported or the production of the material in the form in
which it was sold.
``(3) Exports under the canadian agreement.--Any person who
exports, or who knowingly causes to be exported, any merchandise to
Canada during such time as the United States-Canada Free-Trade
Agreement is in force with respect to, and the United States
applies that Agreement to, Canada shall make, keep, and render for
examination and inspection such records (including certifications
of origin or copies thereof) which pertain to the exportations.
``(4) Imports into the united states.--
``(A) In general.--Any importer who claims preferential
tariff treatment under the USMCA for a good imported into the
United States from a USMCA country shall make, keep, and,
pursuant to rules and regulations prescribed by the Secretary
of the Treasury of the Secretary of Labor, render for
examination and inspection--
``(i) records and supporting documentation related to
the importation;
``(ii) all records and supporting documents related to
the origin of the good (including the certification or
copies thereof), if the importer completed the
certification; and
``(iii) records and supporting documents necessary to
demonstrate that the good did not, while in transit to the
United States, undergo further production or any other
operation other than unloading, reloading, or any other
operation necessary to preserve the good in good condition
or to transport the good to the United States.
``(B) Vehicle producer.--Any vehicle producer whose good is
the subject of a claim for preferential tariff treatment under
the USMCA shall make, keep, and, pursuant to rules and
regulations promulgated by the Secretary of the Treasury and
Secretary of Labor, render for examination and inspection
records and supporting documents related to the labor value
content and steel and aluminum purchasing requirements for the
qualification of its vehicles for preferential treatment.
``(5) Retention period.--
``(A) Exports to usmca countries.--A person covered by
paragraph (2) who completes a USMCA certification of origin or
provides a written representation for a good exported from the
United States to a USMCA country shall keep the records
required by such paragraph relating to that certification of
origin for a period of at least 5 years after the date on which
the certification is completed.
``(B) Exports under canadian agreement.--The records
required by paragraph (3) shall be kept for such periods of
time as the Secretary shall prescribe, except that--
``(i) no period of time for the retention of the
records may exceed 5 years from the date of entry, filing
of a reconciliation, or exportation, as appropriate; and
``(ii) records for any drawback claim shall be kept
until the third anniversary of the date of liquidation of
the claim.
``(C) Imports into the united states.--
``(i) In general.--An importer covered by paragraph
(4)(A) shall keep the records and supporting documents
required by such paragraph for a period of at least 5 years
after the date of importation of the good.
``(ii) Vehicle producer.--A vehicle producer covered by
paragraph (4)(B) shall keep the records and supporting
documents required by paragraph (4)(B) for a period of at
least 5 years after the date of filing the certifications
required under paragraphs (1) and (2) of section 202A(c) of
the United States-Mexico-Canada Agreement Implementation
Act.'';
(2) by striking subsection (c); and
(3) in the paragraph heading for subsection (e)(1), by striking
``nafta'' and inserting ``usmca''.
(b) Effective Date.--
(1) In general.--The amendments made by subsection (a) shall
take effect on the date on which the USMCA enters into force.
(2) Applicability.--
(A) Exports.--Paragraphs (2) and (5)(A) of section 508(b)
of the Tariff Act of 1930, as amended by subsection (a), shall
apply with respect to a good exported from the United States on
or after the date on which the USMCA enters into force.
(B) Imports.--Paragraphs (4) and (5)(C) of section 508(b)
of the Tariff Act of 1930, as amended by subsection (a), shall
apply with respect to a good that is entered for consumption,
or withdrawn from warehouse for consumption, on or after the
date on which the USMCA enters into force.
(3) Transition from nafta treatment.--
(A) Exports.--In the case of a good exported from the
United States before the date on which the USMCA enters into
force--
(i) the amendments made by subsection (a) to paragraphs
(2) and (5)(A) of section 508(b) of the Tariff Act of 1930
(19 U.S.C. 1508) shall not apply with respect to the good;
and
(ii) section 508 of such Act, as in effect on the day
before that date, shall continue to apply on and after that
date with respect to the good.
(B) Imports.--In the case of a good that is entered for
consumption, or withdrawn from warehouse for consumption,
before the date on which the USMCA enters into force, the
amendments made by subsection (a) to paragraphs (4) and (5)(C)
of section 508(b) of the Tariff Act of 1930 (19 U.S.C. 1508)
shall not apply with respect to the good.
SEC. 207. ACTIONS REGARDING VERIFICATION OF CLAIMS UNDER THE USMCA.
(a) Verification.--
(1) Origin verification.--
(A) In general.--The Secretary of the Treasury may,
pursuant to article 5.9 of the USMCA, conduct a verification of
whether a good is an originating good under section 202 or
202A.
(B) Additional requirements.--If the Secretary conducts a
verification under subparagraph (A), the President may direct
the Secretary--
(i) during the verification process, to release the
good only upon payment of duties or provision of security;
and
(ii) if the Secretary makes a negative determination
under subsection (b), to take action under subsection (c).
(2) Textile and apparel goods.--
(A) In general.--The Secretary of the Treasury may,
pursuant to article 6.6 of the USMCA, conduct a verification
described in subparagraph (C) with respect to a textile or
apparel good.
(B) Additional requirements.--If the Secretary conducts a
verification under subparagraph (A) with respect to a textile
or apparel good, the President may direct the Secretary--
(i) during the verification process, to take
appropriate action described in subparagraph (D); and
(ii) if the Secretary makes a negative determination
described in subsection (b), to take action under
subsection (c).
(C) Verification described.--A verification described in
this subparagraph with respect to a textile or apparel good
is--
(i) a verification of whether the good qualifies for
preferential tariff treatment under the USMCA; or
(ii) a verification of whether customs offenses are
occurring or have occurred with respect to the good.
(D) Action during verification.--Appropriate action
described in this subparagraph may consist of--
(i) release of the textile or apparel good that is the
subject of a verification described in subparagraph (C)
upon payment of duties or provision of security;
(ii) suspension of preferential tariff treatment under
the USMCA with respect to--
(I) the textile or apparel good that is the subject
of a verification described in subparagraph (C)(i), if
the Secretary determines that there is insufficient
information to support the claim for preferential
tariff treatment; or
(II) any textile or apparel good exported or
produced by a person that is the subject of a
verification described in subparagraph (C)(ii) if the
Secretary of the Treasury determines that there is
insufficient information to support the claim for
preferential tariff treatment made with respect to that
good;
(iii) denial of preferential tariff treatment under the
USMCA with respect to--
(I) the textile or apparel good that is the subject
of a verification described in subparagraph (C)(i) if
the Secretary determines that incorrect information has
been provided to support the claim for preferential
tariff treatment; or
(II) any textile or apparel good exported or
produced by a person that is the subject of a
verification described in subparagraph (C)(ii) if the
Secretary determines that the person has provided
incorrect information to support the claim for
preferential tariff treatment that has been made with
respect to that good;
(iv) detention of any textile or apparel good exported
or produced by a person that is the subject of a
verification described in subparagraph (C) if the Secretary
determines that there is insufficient information to
determine the country of origin of that good; and
(v) denial of entry into the United States of any
textile or apparel good exported or produced by a person
that is the subject of a verification described in
subparagraph (C) if the Secretary determines that the
person has provided incorrect information regarding the
country of origin of that good.
(b) Negative Determination.--
(1) In general.--A negative determination described in this
subsection with respect to a good imported, exported, or produced
by an importer, exporter, or producer is a determination by the
Secretary, based on a verification conducted under subsection (a),
that--
(A) a claim by the importer, exporter, or producer that the
good qualifies as an originating good under section 202 is
inaccurate; or
(B) the good does not qualify for preferential tariff
treatment under the USMCA because--
(i) the importer, exporter, or producer failed to
respond to a written request for information or failed to
provide sufficient information to determine that the good
qualifies as an originating good;
(ii) after receipt of a written notification for a
visit to conduct verification under subsection (a), the
exporter or producer did not provide written consent for
that visit;
(iii) the importer, exporter, or producer does not
maintain, or denies access to, records or documentation
required under section 508(l) of the Tariff Act of 1930 (19
U.S.C. 1508(l));
(iv) in the case of verification conducted under
subsection (a)(2)--
(I) access or permission for a site visit is
denied;
(II) officials of the United States are prevented
from completing a site visit on the proposed date and
the exporter or producer does not provide an acceptable
alternative date for the site visit; or
(III) the exporter or producer does not provide
access to relevant documents or facilities during a
site visit; or
(v) the importer, exporter, or producer--
(I) otherwise fails to comply with the requirements
of this section; or
(II) based on the preponderance of the evidence,
circumvents the requirements of this section.
(2) Requests for information.--The Secretary shall not make a
negative determination described in paragraph (1)(B) unless--
(A) in a case in which the Secretary conducts a
verification with respect to a good by written request or
questionnaire submitted to the importer under article 5.9.1(a)
of the USMCA and the claim for preferential tariff treatment
under the USMCA is based on a certification of origin completed
by the exporter or producer of the good, the Secretary requests
information from the exporter or producer that completed the
certification; or
(B) in a case in which the Secretary conducts a
verification with respect to a textile or apparel good by
requesting a site visit under article 6.6.2 of the USMCA, the
Secretary requests information from the importer and from any
exporter or producer that provided information to the Secretary
to support the claim for preferential tariff treatment.
(c) Action Based on Determination.--
(1) Denial of preferential tariff treatment.--Upon making a
negative determination described in subsection (b)(1) with respect
to a good, the Secretary may deny preferential tariff treatment
under the USMCA with respect to the good.
(2) Withholding of preferential tariff treatment based on
pattern of conduct.--If verifications of origin relating to
identical goods indicate a pattern of conduct by an importer,
exporter, or producer of false or unsupported representations
relevant to a claim that a good imported into the United States
qualifies for preferential tariff treatment under the USMCA, U.S.
Customs and Border Protection, in accordance with regulations
prescribed by the Secretary, may withhold preferential tariff
treatment under the USMCA for entries of those goods imported,
exported, or produced by that person until U.S. Customs and Border
Protection determines that person has established compliance with
requirements for claims for preferential tariff treatment under the
USMCA.
(d) Prevention of Circumvention.--In making a determination under
this section, including whether to accept or reject a claim for
preferential tariff treatment under the USMCA, the Secretary shall
interpret the requirements of this section in a manner to avoid and
prevent circumvention of those requirements.
SEC. 208. DRAWBACK [RESERVED].
SEC. 209. OTHER AMENDMENTS TO THE TARIFF ACT OF 1930.
(a) Country of Origin Marking.--Section 304 of the Tariff Act of
1930 (19 U.S.C. 1304) is amended by striking subsection (k) and
inserting the following:
``(k) Treatment of Goods of a USMCA Country.--In applying this
section to an article that qualifies as a good of a USMCA country (as
defined in section 3 of the United States-Mexico-Canada Agreement
Implementation Act)--
``(1) the exemption under subsection (a)(3)(H) shall be applied
by substituting `reasonably know' for `necessarily know';
``(2) the Secretary shall exempt the good from the requirements
for marking under subsection (a) if the good--
``(A) is an original work of art; or
``(B) is provided for under subheading 6904.10, heading
8541, or heading 8542 of the Harmonized Tariff Schedule of the
United States; and
``(3) subsection (b) does not apply to the usual container of
any good described in subsection (a)(3)(E) or (I) or paragraph
(2)(A) or (B) of this subsection.''.
(b) Examination of Books and Witnesses.--Section 509(a)(2)(A) of
the Tariff Act of 1930 (19 U.S.C. 1509(a)(2)(A)) is amended--
(1) in clause (i), by inserting at the end ``or a vehicle
producer whose good is subject to a claim of preferential tariff
treatment under the USMCA (as defined in section 3 of the United
States-Mexico-Canada Agreement Implementation Act),''; and
(2) in clause (ii), by striking ``a NAFTA country'' and all
that follows through ``Implementation Act)'' and inserting ``a
USMCA country (as defined in section 3 of the United States-Mexico-
Canada Agreement Implementation Act)''.
(c) Exchange of Information.--Section 628 of the Tariff Act of 1930
(19 U.S.C. 1628) is amended by striking subsection (c) and inserting
the following:
``(c) Government Agency of USMCA Country.--
``(1) In general.--The Secretary may authorize U.S. Customs and
Border Protection to exchange information with any government
agency of a USMCA country, if the Secretary--
``(A) reasonably believes the exchange of information is
necessary to implement chapter 2, 4, 5, 6, or 7 of the USMCA;
and
``(B) obtains assurances from such agency that the
information will be held in confidence and used only for
governmental purposes.
``(2) Definitions.--In this subsection, the terms `USMCA' and
`USMCA country' have the meanings given those terms in section 3 of
the United States-Mexico-Canada Agreement Implementation Act.''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a good entered for consumption,
or withdrawn from warehouse for consumption, on or after that
date.
(2) Transition from nafta treatment.--In the case of a good
entered for consumption, or withdrawn from warehouse for
consumption, before the date on which the USMCA enters into force--
(A) the amendments made by this section shall not apply
with respect to the good; and
(B) the provisions of law amended by this section, as such
provisions were in effect on the day before that date, shall
continue to apply on and after that date with respect to the
good.
(e) Effective Date Relating to Exchange of Information.--
Notwithstanding the amendment made by subsection (c), the Secretary of
the Treasury shall retain the authority provided in section 628(c) of
the Tariff Act of 1930 (as in effect on the day before the date on
which the USMCA enters into force) to exchange information with any
government agency of a NAFTA country (as defined in section 2 of the
North American Free Trade Agreement Implementation Act (as in effect on
the day before the date on which the USMCA enters into force)).
SEC. 210. REGULATIONS.
(a) Secretary of the Treasury.--The Secretary of the Treasury shall
prescribe such regulations as may be necessary to carry out this title
and the amendments made by this title (except as provided by subsection
(b)).
(b) Secretary of Labor.--The Secretary of Labor shall prescribe
such regulations as may be necessary to carry out the labor value
content determination under section 202A.
TITLE III--APPLICATION OF USMCA TO SECTORS AND SERVICES
Subtitle A--Relief From Injury Caused by Import Competition [reserved]
Subtitle B--Temporary Entry of Business Persons [reserved]
Subtitle C--United States-Mexico Cross-Border Long-Haul Trucking
Services
SEC. 321. DEFINITIONS.
In this subtitle:
(1) Border commercial zone.--The term ``border commercial
zone'' means--
(A) the area of United States territory of the
municipalities along the United States-Mexico international
border and the commercial zones of such municipalities as
described in subpart B of part 372 of title 49, Code of Federal
Regulations; and
(B) any additional border crossing and associated
commercial zones listed in the Federal Motor Carrier Safety
Administration OP-2 application instructions or successor
documents.
(2) Cargo originating in mexico.--The term ``cargo originating
in Mexico'' means any cargo that enters the United States by
commercial motor vehicle from Mexico, including cargo that may have
originated in a country other than Mexico.
(3) Change in circumstances.--The term ``change in
circumstance'' may include a substantial increase in services
supplied by the grantee of a grant of authority.
(4) Commercial motor vehicle.--The term ``commercial motor
vehicle'' means a commercial motor vehicle, as such term is defined
in paragraph (1) of section 31132 of title 49, United States Code,
that meets the requirements of subparagraph (A) of such paragraph.
(5) Cross-border long-haul trucking services.--The term
``cross-border long-haul trucking services'' means--
(A) the transportation by commercial motor vehicle of cargo
originating in Mexico to a point in the United States outside
of a border commercial zone; or
(B) the transportation by commercial motor vehicle of cargo
originating in the United States from a point in the United
States outside of a border commercial zone to a point in a
border commercial zone or a point in Mexico.
(6) Driver.--The term ``driver'' means a person that drives a
commercial motor vehicle in cross-border long-haul trucking
services.
(7) Grant of authority.--The term ``grant of authority'' means
registration granted pursuant to section 13902 of title 49, United
States Code, or a successor provision, to persons of Mexico to
conduct cross-border long-haul trucking services in the United
States.
(8) Interested party.--The term ``interested party'' means--
(A) persons of the United States engaged in the provision
of cross-border long-haul trucking services;
(B) a trade or business association, a majority of whose
members are part of the relevant United States long-haul
trucking services industry;
(C) a certified or recognized union, or representative
group of suppliers, operators, or drivers who are part of the
United States long-haul trucking services industry;
(D) the Government of Mexico; or
(E) persons of Mexico.
(9) Material harm.--The term ``material harm'' means a
significant loss in the share of the United States market or
relevant sub-market for cross-border long-haul trucking services
held by persons of the United States.
(10) Operator or supplier.--The term ``operator'' or
``supplier'' means an entity that has been granted registration
under section 13902 of title 49, United States Code, to provide
cross-border long-haul trucking services.
(11) Persons of mexico.--The term ``persons of Mexico''
includes--
(A) entities domiciled in Mexico organized, or otherwise
constituted under Mexican law, including subsidiaries of United
States companies domiciled in Mexico, or entities owned or
controlled by a Mexican national, which conduct cross-border
long-haul trucking services, or employ drivers who are non-
United States nationals; and
(B) drivers who are Mexican nationals.
(12) Persons of the united states.--The term ``persons of the
United States'' includes entities domiciled in the United States,
organized or otherwise constituted under United States law, and not
owned or controlled by persons of Mexico, which provide cross-
border long-haul trucking services and long-haul commercial motor
vehicle drivers who are United States nationals.
(13) Threat of material harm.--The term ``threat of material
harm'' means material harm that is likely to occur.
(14) United states long-haul trucking services industry.--The
term ``United States long-haul trucking services industry'' means--
(A) United States suppliers, operators, or drivers as a
whole providing cross-border long-haul trucking services; or
(B) United States suppliers, operators, or drivers
providing cross-border long-haul trucking services in a
specific sub-market of the whole United States market.
SEC. 322. INVESTIGATIONS AND DETERMINATIONS BY COMMISSION.
(a) Investigation.--Upon the filing of a petition by an interested
party described in subparagraph (A), (B), or (C) of section 321(8)
which is representative of a United States long-haul trucking services
industry, or at the request of the President or the Trade
Representative, or upon the resolution of the Committee on Ways and
Means of the House of Representatives or the Committee on Finance of
the Senate, the International Trade Commission (in this subtitle
referred to as the ``Commission'') shall promptly initiate an
investigation to determine--
(1) whether a request by a person of Mexico to receive a grant
of authority that is pending as of the date of the filing of the
petition threatens to cause material harm to a United States long-
haul trucking services industry;
(2) whether a person of Mexico who has received a grant of
authority on or after the date of entry into force of the USMCA and
retains such grant of authority is causing or threatens to cause
material harm to a United States long-haul trucking services
industry; or
(3) whether, with respect to a person of Mexico who has
received a grant of authority before the date of entry into force
of the USMCA and retains such grant of authority, there has been a
change in circumstances such that such person of Mexico is causing
or threatens to cause material harm to a United States long-haul
trucking services industry.
(b) Transmission of Petition, Request, or Resolution.--The
Commission shall transmit a copy of any petition, request, or
resolution filed under subsection (a) to the Trade Representative and
the Secretary of Transportation.
(c) Publication and Hearings.--The Commission shall--
(1) promptly publish notice of the commencement of any
investigation under subsection (a) in the Federal Register; and
(2) within a reasonable time period thereafter, hold public
hearings at which the Commission shall afford interested parties an
opportunity to be present, to present evidence, to respond to
presentations of other parties, and otherwise to be heard.
(d) Factors Applied in Making Determinations.--In making a
determination under subsection (a) of whether a request by a person of
Mexico to receive a grant of authority, or a person of Mexico who has
received a grant of authority and retains such grant of authority, as
the case may be, threatens to cause material harm to a United States
long-haul trucking services industry, the Commission shall--
(1) consider, among other things, and as relevant--
(A) the volume and tonnage of merchandise transported; and
(B) the employment, wages, hours of service, and working
conditions; and
(2) with respect to a change in circumstances described in
subsection (a)(3), take into account those operations by persons of
Mexico under grants of authority in effect as of the date of entry
into force of the USMCA are not causing material harm.
(e) Assistance to Commission.--
(1) In general.--At the request of the Commission, the
Secretary of Homeland Security shall consult with the Commission
and shall collect and maintain such additional data and other
information on commercial motor vehicles entering or exiting the
United States at a port of entry or exit at the United States
border with Mexico as the Commission may request for the purpose of
conducting investigations under subsection (a) and shall make such
information available to the Commission in a timely manner.
(2) Requests for information.--
(A) In general.--At the request of the Commission, the
Secretary of Homeland Security, the Secretary of
Transportation, the Secretary of Commerce, the Secretary of
Labor, and the head of any other Federal agency shall make
available to the Commission any information in their
possession, including proprietary information, as the
Commission may require in order to assist the Commission in
making determinations under subsection (a).
(B) Confidential business information.--The Commission
shall treat any proprietary information obtained under
subparagraph (A) as confidential business information in
accordance with regulations adopted by the Commission to carry
out this subtitle.
(f) Limited Disclosure of Confidential Business Information Under
Protective Order.--The Commission shall promulgate regulations to
provide access to confidential business information under protective
order to authorized representatives of interested parties who are
parties to an investigation under subsection (a).
(g) Deadline for Determination.--
(1) In general.--Not later than 120 days after the date on
which an investigation is initiated under subsection (a) with
respect to a petition, request, or resolution, the Commission shall
make a determination with respect to the petition, request, or
resolution.
(2) Exception.--If, before the 100th day after an investigation
is initiated under subsection (a), the Commission determines that
the investigation is extraordinarily complicated, the Commission
shall make its determination with respect to the investigation not
later than 150 days after the date referred to in paragraph (1).
(h) 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)) 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).
SEC. 323. COMMISSION RECOMMENDATIONS AND REPORT.
(a) In General.--If the Commission makes an affirmative
determination under section 322, the Commission shall recommend the
action that is necessary to address the material harm or threat of
material harm found.
(b) Limitation.--Only those members of the Commission who agreed to
the affirmative determination under section 322 are eligible to vote on
the recommendation required to be made under subsection (a).
(c) Report.--Not later than the date that is 60 days after the date
on which the determination is made under section 322, the Commission
shall submit to the President a report that includes--
(1) the determination and an explanation of the basis for the
determination;
(2) if the determination is affirmative, recommendations for
action and an explanation of the basis for the recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination.
(d) Public Notice.--Upon submitting a report to the President under
subsection (c), the Commission shall--
(1) promptly make public the report (with the exception of
information which the Commission determines to be confidential
business information); and
(2) publish a summary of the report in the Federal Register.
SEC. 324. ACTION BY PRESIDENT WITH RESPECT TO AFFIRMATIVE
DETERMINATION.
(a) In General.--Not later than the date that is 30 days after the
date on which the President receives a report of the Commission in
which the Commission's determination under section 322 is affirmative
or which contains a determination that the President may treat as
affirmative in accordance with section 330(d)(1) of the Tariff Act of
1930 (19 U.S.C. 1330(d)(1))--
(1) the President shall, subject to subsection (b), issue an
order to the Secretary of Transportation specifying the relief to
be provided, consistent with subsection (c), and directing the
relief to be carried out; and
(2) the Secretary of Transportation shall carry out such
relief.
(b) Exception.--The President is not required to provide relief
under this section if the President determines that provision of such
relief--
(1) is not in the national economic interest of the United
States; or
(2) would cause serious harm to the national security of the
United States.
(c) Nature of Relief.--
(1) In general.--The relief the President is authorized to
provide under this subsection is as follows:
(A)(i) With respect to a determination relating to an
investigation under section 322(a)(1), the denial or imposition
of limitations on a request for a new grant of authority by the
persons of Mexico that are the subject of the investigation.
(ii) With respect to a determination relating to an
investigation under section 322(a)(1), the revocation of, or
restrictions on, grants of authority issued to the persons of
Mexico that are the subject of the investigation since the date
of the petition, request, or resolution.
(B) With respect to a determination relating to an
investigation under section 322(a)(2) or (3), the revocation or
imposition of limitations on an existing grant of authority by
the persons of Mexico that are the subject of the
investigation.
(C) With respect to a determination relating to an
investigation under section 322(a)(1), (2), or (3), a cap on
the number of grants of authority issued to persons of Mexico
annually.
(2) Deadline for relief.--Not later than 15 days after the date
on which the President determines the relief to be provided under
this subsection, the President shall direct the Secretary of
Transportation to carry out the relief.
(d) Period of Relief.--
(1) In general.--Subject to paragraph (2), any 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 a determination from the Commission
under subparagraph (B) that is affirmative, or which contains a
determination that the President may treat as affirmative in
accordance with section 330(d)(1) of the Tariff Act of 1930 (19
U.S.C. 1330(d)(1)(1)), may extend the effective period of
relief provided under this section by up to an additional 4
years, if the President determines that the provision of the
relief continues to be necessary to remedy or prevent material
harm.
(B) Action by commission.--
(i) Investigation.--Upon request of the President, or
upon the filing by an interested party described in
subparagraph (A), (B), or (C) of section 321(8) which is
representative of a United States long-haul trucking
services industry that is filed with the Commission not
earlier than the date that is 270 days, and not later than
the date that is 240 days, before the date on which any
action taken under this section is to terminate, the
Commission shall conduct an investigation to determine
whether action under this section continues to be necessary
to remedy or prevent material harm.
(ii) Notice and hearing.--The Commission shall--
(I) publish notice of the commencement of an
investigation under clause (i) in the Federal Register;
and
(II) within a reasonable time thereafter, hold a
public hearing at which the Commission shall afford
interested parties an opportunity to be present, to
present evidence, and to respond to the presentations
of other parties and consumers, and otherwise be heard.
(iii) Report.--Not later than the date that is 60 days
before relief provided under subsection (a) is to
terminate, or such other date as determined by the
President, the Commission shall submit to the President a
report on its investigation and determination under this
subparagraph.
(C) Period of relief.--Any relief provided under this
section, including any extension thereof, may not, in the
aggregate, be in effect for more than 6 years.
(D) Limitation.--
(i) In general.--Except as provided in clause (ii), the
Commission may not conduct an investigation under
subparagraph (B)(i) if--
(I) the subject matter of the investigation is the
same as the subject matter of a previous investigation
conducted under subparagraph (B)(i); and
(II) less than 1 year has elapsed since the
Commission made its report to the President of the
results of such previous investigation.
(ii) Exception.--Clause (i) shall not apply with
respect to an investigation if the Commission determines
good cause exists to conduct the investigation.
(e) Regulations.--The Commission and the Secretary of
Transportation are authorized to promulgate such rules and regulations
as may be necessary to carry out this subtitle.
SEC. 325. 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 by striking ``and title III of the
United States-Panama Trade Promotion Agreement Implementation Act'' and
inserting ``, title III of the United States-Panama Trade Promotion
Agreement Implementation Act, and subtitle C of title III of the United
States-Mexico-Canada Agreement Implementation Act''.
SEC. 326. CONFORMING AMENDMENTS.
(a) Registration of Motor Carriers.--Section 13902 of title 49,
United States Code, is amended by inserting at the end the following:
``(j) Mexico-Domiciled Motor Carriers.--Notwithstanding any other
provision of this section, upon an order in accordance with section
324(a) of the United States-Mexico-Canada Agreement Implementation Act,
the Secretary shall carry out the relief specified by denying or
imposing limitations on a request for registration or capping the
number of requests for registration by Mexico-domiciled motor carriers
of cargo to operate beyond the municipalities along the United States-
Mexico international border and the commercial zones of those
municipalities as directed.''.
(b) Effective Periods of Registration.--Section 13905 of title 49,
United States Code, is amended by inserting at the end the following:
``(g) Mexico-Domiciled Motor Carriers.--Notwithstanding any other
provision of this section, upon an order in accordance with section
324(a) of the United States-Mexico-Canada Agreement Implementation Act,
the Secretary shall carry out the relief specified by revoking or
imposing limitations on existing registrations of Mexico-domiciled
motor carriers of cargo to operate beyond the municipalities along the
United States-Mexico international border and the commercial zones of
those municipalities as directed.''.
SEC. 327. SURVEY OF OPERATING AUTHORITIES.
The Department of Transportation shall undertake a survey of all
existing grants of operating authority to, and pending applications for
operating authority from, all Mexico-domiciled motor property carriers
for operating beyond the Border Commercial Zones, including OP-1 (MX)
operating authority (Mexico-domiciled Carriers for Motor Carrier
Authority to Operate Beyond U.S. Municipalities and Commercial Zones on
the U.S.-Mexico Border) and OP-1 operating authority (United States-
based Enterprise Carrier of International Cargo Application for Motor
Property Carrier and Broker Authority). The Department of
Transportation shall prepare a report summarizing the results of such
survey not less than 180 days after the date on which the USMCA enters
into force, which it shall deliver to the Office of the United States
Trade Representative, the Commission, and the Chairs and Ranking
Members of the Committee on Transportation and Infrastructure of the
House of Representatives, the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on Ways and Means of the
House of Representatives, and the Committee on Finance of the Senate.
TITLE IV--ANTIDUMPING AND COUNTERVAILING DUTIES
Subtitle A--Preventing Duty Evasion
SEC. 401. COOPERATION ON DUTY EVASION.
Section 414(b) of the Enforce and Protect Act of 2015 (19 U.S.C.
4374(b)) is amended--
(1) by inserting ``or a party to the USMCA (as defined in
section 3 of the United States-Mexico-Canada Agreement
Implementation Act)'' after ``subsection (a)''; and
(2) by inserting ``or the USMCA, as the case may be,'' after
``the bilateral agreement''.
Subtitle B--Dispute Settlement [reserved]
Subtitle C--Conforming Amendments
SEC. 421. JUDICIAL REVIEW IN ANTIDUMPING DUTY AND COUNTERVAILING
DUTY CASES.
Section 516A of the Tariff Act of 1930 (19 U.S.C. 1516a) is
amended--
(1) in subsection (a)--
(A) in paragraph (2)(B)(vii), by striking ``the Tariff Act
of 1930'' and inserting ``this Act''; and
(B) in paragraph (5)(D)(i), by striking ``article 1904 of
the NAFTA'' and inserting ``article 10.12 of the USMCA'';
(2) in subsection (b)(3)--
(A) in the paragraph heading, by striking ``nafta or united
states-canada'' and inserting ``united states-canada or
usmca''; and
(B) in the text, by striking ``of the NAFTA or of the
Agreement'' and inserting ``of the Agreement or article 10.12
of the USMCA'';
(3) in subsection (f)--
(A) in paragraph (6)(A), by striking ``article 1908 of the
NAFTA'' and inserting ``article 10.16 of the USMCA'';
(B) in paragraph (7)(A), by striking ``article 1908 of the
NAFTA'' and inserting ``article 10.16 of the USMCA'';
(C) by striking paragraph (8);
(D) by redesignating paragraphs (9) and (10) as paragraphs
(8) and (9), respectively;
(E) in paragraph (9), as redesignated by subparagraph (D),
by striking subparagraphs (A) and (B) and inserting the
following:
``(A) Canada for such time as the USMCA is in force with
respect to, and the United States applies the USMCA to, Canada.
``(B) Mexico for such time as the USMCA is in force with
respect to, and the United States applies the USMCA to,
Mexico.''; and
(F) by adding at the end the following:
``(10) USMCA.--The term `USMCA' has the meaning given that term
in section 3 of the United States-Mexico-Canada Agreement
Implementation Act.'';
(4) in subsection (g)--
(A) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``of the NAFTA or of the Agreement'' and
inserting ``of the Agreement or article 10.12 of the USMCA'';
(B) in paragraph (3)(A)--
(i) in clause (i), by striking ``of the NAFTA or of the
Agreement.'' and inserting ``of the Agreement or article
10.12 of the USMCA;'';
(ii) in clause (iii), by striking ``the NAFTA or of the
Agreement'' and inserting ``the Agreement or the USMCA'';
(iii) in clause (v), by striking ``paragraph 12 of
article 1905 of the NAFTA'' and inserting ``article 10.13
of the USMCA''; and
(iv) in clause (vi), by striking ``paragraph 12 of
article 1905 of the NAFTA'' and inserting ``article 10.13
of the USMCA'';
(C) in paragraph (4)(A), by striking ``the North American
Free Trade Agreement'' and all that follows through ``chapter
19 of the Agreement'' and inserting ``the United States-Canada
Free-Trade Agreement Implementation Act of 1988 implementing
the binational panel dispute settlement system under chapter 19
of the Agreement, or the United States-Mexico-Canada Agreement
Implementation Act implementing the binational panel dispute
settlement system under chapter 10 of the USMCA'';
(D) in paragraph (5)--
(i) in subparagraph (A), by striking ``of the NAFTA or
of the Agreement'' and inserting ``of the Agreement or
article 10.12 of the USMCA'';
(ii) in subparagraph (B), by striking ``of the NAFTA or
of the Agreement'' and inserting ``of the Agreement or
article 10.12 of the USMCA''; and
(iii) in subparagraph (C)--
(I) in clause (i), by striking ``of the NAFTA or of
the Agreement'' and inserting ``of the Agreement or
article 10.12 of the USMCA''; and
(II) in clause (iii), by striking ``of the NAFTA or
of the Agreement'' and inserting ``of the Agreement or
chapter 10 of the USMCA'';
(E) in paragraph (6), by striking ``of the NAFTA or of the
Agreement'' and inserting ``of the Agreement or article 10.12
of the USMCA'';
(F) in paragraph (7)--
(i) in the paragraph heading, by striking ``of the
nafta or the agreement'' and inserting ``of the agreement
or article 10.12 of the usmca''; and
(ii) in subparagraph (A), by striking ``the NAFTA or
the Agreement'' and inserting ``article 1904 of the
Agreement or article 10.12 of the USMCA'';
(G) in paragraph (8)--
(i) in subparagraph (A)--
(I) in clause (i), by striking ``of the NAFTA or of
the Agreement'' and inserting ``of the Agreement or
article 10.12 of the USMCA''; and
(II) in clause (ii)--
(aa) in the clause heading, by striking
``nafta'' and inserting ``usmca''; and
(bb) in the text, by striking ``paragraph 11(a)
of article 1905 of the NAFTA'' and inserting
``article 10.13 of the USMCA''; and
(ii) in subparagraph (C), by striking ``of the NAFTA or
the Agreement'' and inserting ``of the Agreement or article
10.12 of the USMCA'';
(H) in paragraph (9), by striking ``of the NAFTA or of the
Agreement'' and inserting ``of the Agreement or chapter 10 of
the USMCA'';
(I) in paragraph (10), by striking ``the NAFTA or the
Agreement'' and inserting ``the Agreement or under article
10.12 of the USMCA'';
(J) by striking paragraph (11) and inserting the following:
``(11) Suspension and termination of suspension of article
10.12 of the usmca.--
``(A) Suspension.--If a special committee established under
article 10.13 of the USMCA issues an affirmative finding, the
Trade Representative may, in accordance with article 10.13 of
the USMCA, suspend the operation of article 10.12 of the USMCA.
``(B) Termination of suspension.--If a special committee is
reconvened and makes an affirmative determination described in
article 10.13 of the USMCA, any suspension of the operation of
article 10.12 of the USMCA shall terminate.''; and
(K) in paragraph (12)--
(i) in the paragraph heading, by striking ``nafta'' and
inserting ``usmca'';
(ii) by striking subparagraph (A) and inserting the
following:
``(A) Notice of suspension or termination of suspension of
article 10.12 of the usmca.--
``(i) Notice of suspension.--Upon notification by the
Trade Representative or the government of a country
described in subparagraph (A) or (B) of subsection (f)(9)
that the operation of article 10.12 of the USMCA has been
suspended in accordance with article 10.13 of the USMCA,
the United States Secretary shall publish in the Federal
Register a notice of suspension of article 10.12 of the
USMCA.
``(ii) Notice of termination of suspension.--Upon
notification by the Trade Representative or the government
of a country described in subparagraph (A) or (B) of
subsection (f)(9) that the suspension of the operation of
article 10.12 of the USMCA is terminated in accordance with
article 10.13 of the USMCA, the United States Secretary
shall publish in the Federal Register a notice of
termination of suspension of article 10.12 of the USMCA.'';
(iii) in subparagraph (B)--
(I) in the subparagraph heading, by striking
``article 1904'' and inserting ``article 10.12 of the
usmca''; and
(II) in the matter preceding clause (i), by
striking ``If'' and all that follows through ``NAFTA--
'' and inserting the following: ``If the operation of
article 10.12 of the USMCA is suspended in accordance
with article 10.13 of the USMCA--'';
(iv) in subparagraph (C)--
(I) in clause (i)--
(aa) in the matter preceding subclause (I), by
striking ``if the United States'' and all that
follows through ``NAFTA--'' and inserting the
following: ``if the United States made an
allegation under article 10.13 of the USMCA and the
operation of article 10.12 of the USMCA was
suspended pursuant to article 10.13 of the USMCA--
''; and
(bb) in subclause (I), by striking ``subsection
(f)(10)(A) or (B)'' and inserting ``subparagraph
(A) or (B) of subsection (f)(9)''; and
(II) in clause (ii), in the matter preceding
subclause (I), by striking ``if a country'' and all
that follows through ``NAFTA--'' and inserting the
following: ``if a country described in subparagraph (A)
or (B) of subsection (f)(9) made an allegation under
article 10.13 of the USMCA and the operation of article
10.12 of the USMCA was suspended pursuant to article
10.13 of the USMCA--''; and
(v) in subparagraph (D)(i), by striking ``a country
described'' and all that follows through ``NAFTA'' and
inserting ``a country described in subparagraph (A) or (B)
of subsection (f)(9) pursuant to article 10.13 of the
USMCA''.
SEC. 422. CONFORMING AMENDMENTS TO OTHER PROVISIONS OF THE TARIFF
ACT OF 1930.
(a) Disclosure of Proprietary Information Under Protective
Orders.--Section 777(f) of the Tariff Act of 1930 (19 U.S.C. 1677f(f))
is amended--
(1) in the subsection heading, by striking ``North American
Free Trade Agreement or the United States-Canada Agreement'' and
inserting ``the United States-Canada Agreement or the USMCA'';
(2) in paragraph (1)--
(A) in subparagraph (A), by striking ``article 1904 of the
NAFTA'' and all that follows through ``, the administering
authority'' and inserting ``article 1904 of the United States-
Canada Agreement or article 10.12 of the USMCA, or an
extraordinary challenge committee is convened under Annex
1904.13 of the United States-Canada Agreement or chapter 10 of
the USMCA, the administering authority''; and
(B) in subparagraph (B), by striking ``chapter 19 of the
NAFTA or the Agreement'' each place it appears and inserting
``chapter 19 of the Agreement or chapter 10 of the USMCA'';
(3) in paragraph (3), by striking ``the NAFTA or the United
States-Canada Agreement'' and inserting ``article 1904 of the
United States-Canada Agreement or article 10.12 of the USMCA'';
(4) in paragraph (4), by striking ``section 402(b) of the North
American Free Trade Agreement Implementation Act'' and inserting
``section 412(b) of the United States-Mexico-Canada Agreement
Implementation Act''; and
(5) by striking ``section 516A(f)(10)'' each place it appears
and inserting ``section 516A(f)(9)''.
(b) Definition.--Section 771 of the Tariff Act of 1930 (19 U.S.C.
1677) is amended by striking paragraph (22) and inserting the
following:
``(22) USMCA.--The term `USMCA' has the meaning given that term
in section 3 of the United States-Mexico-Canada Agreement
Implementation Act.''.
SEC. 423. CONFORMING AMENDMENTS TO TITLE 28, UNITED STATES CODE.
(a) Court of International Trade.--Chapter 95 of title 28, United
States Code, is amended--
(1) in section 1581(i)--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively;
(B) by inserting ``(1)'' after ``(i)'';
(C) in subparagraph (D), as redesignated by subparagraph
(A), by striking ``paragraphs (1)-(3) of this subsection'' and
inserting ``subparagraphs (A) through (C) of this paragraph'';
and
(D) by striking the flush text and inserting the following:
``(2) This subsection shall not confer jurisdiction over an
antidumping or countervailing duty determination which is reviewable
by--
``(A) the Court of International Trade under section 516A(a) of
the Tariff Act of 1930 (19 U.S.C. 1516a(a)); or
``(B) a binational panel under section 516A(g) of the Tariff
Act of 1930 (19 U.S.C. 1516a(g)).'';
(2) in section 1584, by striking the section heading and
inserting the following:
``Sec. 1584. Civil actions under the United States-Canada Free-Trade
Agreement or the USMCA'';
and
(3) in the table of sections at the beginning of the chapter,
by striking the item relating to section 1584 and inserting the
following:
``1584. Civil actions under the United States-Canada Free-Trade
Agreement or the USMCA.''.
(b) Particular Proceedings.--Sections 2201(a) and 2643(c)(5) of
title 28, United States Code, are each amended by striking ``section
516A(f)(10)'' and inserting ``section 516A(f)(9)''.
Subtitle D--General Provisions
SEC. 431. EFFECT OF TERMINATION OF USMCA COUNTRY STATUS.
(a) In General.--Except as provided in subsection (b), on the date
on which a country ceases to be a USMCA country, the provisions of this
title (other than this section) and the amendments made by this title
shall cease to have effect with respect to that country.
(b) Transition Provisions.--
(1) Proceedings regarding protective orders and undertakings.--
If on the date on which a country ceases to be a USMCA country an
investigation or enforcement proceeding concerning the violation of
a protective order issued under section 777(f) of the Tariff Act of
1930 (as amended by this title) or an undertaking of the government
of that country is pending, the investigation or proceeding shall
continue, and sanctions may continue to be imposed, in accordance
with the provisions of such section 777(f) (as so amended).
(2) Binational panel and extraordinary challenge committee
reviews.--If on the date on which a country ceases to be a USMCA
country--
(A) a binational panel review under article 10.12 of the
USMCA is pending, or has been requested, or
(B) an extraordinary challenge committee review under that
article is pending, or has been requested,
with respect to a determination which involves a class or kind of
merchandise and to which subsection (g)(2) of section 516A of the
Tariff Act of 1930 (19 U.S.C. 1516a) applies, such determination
shall be reviewable under subsection (a) of that section. In the
case of a determination to which the provisions of this paragraph
apply, the time limits for commencing an action under 516A(a) of
the Tariff Act of 1930 shall not begin to run until the date on
which the USMCA ceases to be in force with respect to that country.
SEC. 432. EFFECTIVE DATE.
The provisions of this title and the amendments made by this title
shall take effect on the date on which the USMCA enters into force, but
shall not apply--
(1) to any final determination described in paragraph (1)(B) or
clause (i), (ii), or (iii) of paragraph (2)(B) of section 516A(a)
of the Tariff Act of 1930 (19 U.S.C. 1516a(a)) notice of which is
published in the Federal Register before such date, or to a
determination described in paragraph (2)(B)(vi) of that section
notice of which is received by the Government of Canada or Mexico
before such date; or
(2) to any binational panel review under NAFTA, or any
extraordinary challenge arising out of any such review, that was
commenced before such date.
TITLE V--TRANSFER PROVISIONS AND OTHER AMENDMENTS
SEC. 501. DRAWBACK.
(a) Clerical Amendment.--Section 208 of this Act is amended in the
section heading by striking ``[reserved]''.
(b) USMCA Drawback.--Subsection (a) of section 203 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3333) is--
(1) transferred to section 208 of this Act;
(2) inserted after the section heading for that section (as
amended by subsection (a)); and
(3) amended--
(A) by striking ``NAFTA country'' each place it appears and
inserting ``USMCA country'';
(B) in the subsection heading, by striking ``NAFTA'' and
inserting ``USMCA'';
(C) in the matter preceding paragraph (1)--
(i) by striking ``and the amendments made by subsection
(b)''; and
(ii) by striking ``NAFTA drawback'' and inserting
``USMCA drawback'';
(D) in paragraph (2)--
(i) in subparagraph (A), by inserting ``sorting,
marking,'' after ``repacking,''; and
(ii) in subparagraph (B), by striking ``paragraph 12 of
section A of Annex 703.2 of the Agreement'' and inserting
``paragraph 11 of Annex 3-B of the USMCA''; and
(E) by amending paragraph (6) to read as follows:
``(6) A good provided for in subheading 1701.13.20 or
1701.14.20 of the HTS that is imported under any re-export program
or any like program and that is--
``(A) used as a material, or
``(B) substituted for by a good of the same kind and
quality that is used as a material,
in the production of a good provided for in existing Canadian
tariff item 1701.99.00 or existing Mexican tariff item 1701.99.01,
1701.99.02, or 1701.99.99 (relating to refined sugar).''.
(c) Same Kind and Quality.--Section 208 of this Act, as amended by
subsection (b), is further amended by adding at the end the following:
``(b) Same Kind and Quality.--For purposes of paragraphs
(3)(A)(iii), (5)(C), (6)(B), and (8) of subsection (a), and for
purposes of obtaining refunds, waivers, or reductions of customs duties
with respect to a good subject to USMCA drawback under section
313(n)(2) of the Tariff Act of 1930 (19 U.S.C. 1313(n)(2)), a good is a
good of the same kind and quality as another good--
``(1) for a good described in such paragraph (6)(B), if the
good would have been considered of the same kind and quality as the
other good on the day before the date on which the USMCA enters
into force; or
``(2) for other goods if--
``(A) the good is classified under the same 8-digit HTS
subheading number as the other good; or
``(B) drawback would be allowed with respect to the goods
under subsection (b)(4), (j)(1), or (p) of section 313 of the
Tariff Act of 1930 (19 U.S.C. 1313).''.
(d) Certain Fees; Inapplicability to Countervailing and Antidumping
Duties.--Subsections (d) and (e) of section 203 of the North American
Free Trade Agreement Implementation Act (19 U.S.C. 3333) are--
(1) transferred to section 208 of this Act;
(2) inserted after subsection (b) of section 208 (as added by
subsection (c));
(3) redesignated as subsections (c) and (d), respectively; and
(4) amended, in subsection (c) (as redesignated by paragraph
(3)), by striking ``exported to'' and all that follows through the
period at the end and inserting ``exported to a USMCA country.''.
(e) Conforming Amendments.--
(1) Bonded manufacturing warehouses.--Section 311 of the Tariff
Act of 1930 (19 U.S.C. 1311) is amended, in the eleventh
paragraph--
(A) by striking ``NAFTA'' each place it appears;
(B) by striking ``section 203(a) of the North American Free
Trade Agreement Implementation Act'' and inserting ``section
208(a) of the United States-Mexico-Canada Agreement
Implementation Act''; and
(C) by striking ``section 2(4) of that Act'' and inserting
``section 3 of that Act''.
(2) Bonded smelting and refining warehouses.--Section 312 of
the Tariff Act of 1930 (19 U.S.C. 1312) is amended, in subsections
(b) and (d)--
(A) by striking ``NAFTA'' each place it appears and
inserting ``USMCA'';
(B) by striking ``section 2(4) of the North American Free
Trade Agreement Implementation Act'' each place it appears and
inserting ``section 3 of the United States-Mexico-Canada
Agreement Implementation Act''; and
(C) by striking ``section 203(a) of that Act'' each place
it appears and inserting ``section 208(a) of that Act''.
(3) Drawback and refunds.--Section 313 of the Tariff Act of
1930 (19 U.S.C. 1313) is amended--
(A) in subsection (j)(4), by striking subparagraph (A) and
inserting the following:
``(A)(i) Effective upon the entry into force of the USMCA, the
exportation to a USMCA country of merchandise that is fungible with
and substituted for imported merchandise, other than merchandise
described in paragraphs (1) through (8) of section 208(a) of the
United States-Mexico-Canada Agreement Implementation Act, shall not
constitute an exportation for purposes of paragraph (2).
``(ii) In this subparagraph, the terms `USMCA' and `USMCA
country' have the meanings given those terms in section 3 of the
United States-Mexico-Canada Agreement Implementation Act.'';
(B) in subsection (n)--
(i) in paragraph (1), by striking subparagraphs (A) and
(B) and inserting the following:
``(A) the term `USMCA country' has the meaning given that term
in section 3 of the United States-Mexico-Canada Agreement
Implementation Act;
``(B) the term `good subject to USMCA drawback' has the meaning
given that term in section 208(a) of the United States-Mexico-
Canada Agreement Implementation Act;''; and
(ii) in paragraphs (2) and (3), by striking ``NAFTA''
each place it appears and inserting ``USMCA''; and
(C) in subsection (o), by striking ``NAFTA'' each place it
appears and inserting ``USMCA''.
(4) Manipulation in warehouse.--Section 562 of the Tariff Act
of 1930 (19 U.S.C. 1562) is amended--
(A) by striking paragraph (1) and inserting the following:
``(1) without payment of duties for exportation to a USMCA
country, as defined in section 3 of the United States-Mexico-Canada
Agreement Implementation Act, if the merchandise is of a kind
described in any of paragraphs (1) through (8) of section 208(a) of
that Act;'';
(B) in paragraph (2)--
(i) by striking ``section 203(a) of that Act'' and
inserting ``section 208(a) of that Act''; and
(ii) by striking ``NAFTA'' each place it appears and
inserting ``USMCA''; and
(C) in paragraphs (3) and (4), by striking ``NAFTA'' each
place it appears and inserting ``USMCA''.
(5) Foreign trade zones.--Section 3(a)(2) of the Act of June
18, 1934 (commonly known as the ``Foreign Trade Zones Act'') (19
U.S.C. 81c(a)(2)) is amended, in the flush text--
(A) by striking ``goods subject to NAFTA drawback, as
defined in section 203(a) of the North American Free Trade
Agreement Implementation Act'' and inserting ``goods subject to
USMCA drawback, as defined in section 208(a) of the United
States-Mexico-Canada Agreement Implementation Act'';
(B) by striking ``a NAFTA country, as defined in section
2(4) of that Act'' and inserting ``a USMCA country, as defined
in section 3 of that Act''; and
(C) by striking ``NAFTA'' each place it appears and
inserting ``USMCA''.
(f) Additional Clerical Amendment.--The table of contents for this
Act is amended by striking the item relating to section 208 and
inserting the following:
``Sec. 208. Drawback.''.
(g) Effective Date.--
(1) In general.--Each transfer, redesignation, and amendment
made by subsections (b) through (e) shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a good entered, or withdrawn from
warehouse for consumption, on or after that date.
(2) Transition from nafta treatment.--In the case of a good
entered, or withdrawn from warehouse for consumption, before the
date on which the USMCA enters into force--
(A) the amendments made by subsections (b) through (e)
shall not apply with respect to the good; and
(B) the provisions of law amended by such subsections, as
such provisions were in effect on the day before that date,
shall continue to apply on and after that date with respect to
the good.
SEC. 502. RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION.
(a) Clerical Amendment.--Subtitle A of title III of this Act is
amended in the subtitle heading by striking ``[reserved]''.
(b) Article Impact in Import Relief Cases.--Section 311 of the
North American Free Trade Agreement Implementation Act (19 U.S.C. 3371)
is--
(1) transferred to subtitle A of title III of this Act;
(2) inserted after the heading (as amended by subsection (a))
of such subtitle;
(3) redesignated as section 301; and
(4) amended--
(A) in the section heading, by striking ``nafta'' and
inserting ``usmca'';
(B) in subsection (c), by striking ``section 312(a)'' and
inserting ``section 302(a)''; and
(C) by striking ``NAFTA'' each place it appears and
inserting ``USMCA''.
(c) Presidential Action Regarding Imports.--Section 312 of the
North American Free Trade Agreement Implementation Act (19 U.S.C. 3372)
is--
(1) transferred to subtitle A of title III of this Act;
(2) inserted after section 301 (as inserted and redesignated by
subsection (b));
(3) redesignated as section 302; and
(4) amended--
(A) in the section heading, by striking ``nafta'' and
inserting ``usmca'';
(B) in subsection (b), in the subsection heading, by
striking ``NAFTA'' and inserting ``USMCA'';
(C) in subsection (c), in the subsection heading, by
striking ``NAFTA'' and inserting ``USMCA''; and
(D) by striking ``NAFTA'' each place it appears and
inserting ``USMCA''.
(d) Additional Clerical Amendments.--The table of contents for this
Act is amended by striking the item relating to subtitle A of title III
and inserting the following:
``Subtitle A--Relief From Injury Caused by Import Competition
``Sec. 301. USMCA article impact in import relief cases under the Trade
Act of 1974.
``Sec. 302. Presidential action regarding USMCA imports.''.
(e) Effective Date.--
(1) In general.--Each transfer, redesignation, and amendment
made by this section shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to an investigation under chapter 1
of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.)
initiated on or after that date.
(2) Transition from nafta.--In the case of an investigation
under chapter 1 of title II of the Trade Act of 1974 initiated
before the date on which the USMCA enters into force--
(A) the transfers, redesignations, and amendments made by
this section shall not apply with respect to the investigation;
and
(B) sections 311 and 312 of the North American Free Trade
Agreement Implementation Act (19 U.S.C. 3371 and 3372), as in
effect on the day before that date, shall continue to apply on
and after that date with respect to the investigation.
SEC. 503. TEMPORARY ENTRY.
(a) Clerical Amendment.--Subtitle B of title III of this Act is
amended in the subtitle heading by striking ``[reserved]''.
(b) Nonimmigrant Traders and Investors.--Section 341 of the North
American Free Trade Agreement Implementation Act (Public Law 103-182;
107 Stat. 2116) is--
(1) transferred to subtitle B of title III of this Act;
(2) inserted after the heading (as amended by subsection (a))
of such subtitle;
(3) redesignated as section 311; and
(4) amended--
(A) by striking subsections (b) and (c);
(B) by striking ``(a)'' and all that follows through
``Upon'' and inserting ``Upon'';
(C) by striking ``the Agreement'' each place it appears and
inserting ``the USMCA'';
(D) by striking ``Annex 1603'' and inserting ``Annex 16-
A''; and
(E) by striking ``Annex 1608'' and inserting ``article
16.1''.
(c) Nonimmigrant Professionals.--Section 214 of the Immigration and
Nationality Act (8 U.S.C. 1184) is amended--
(1) in subsection (e)--
(A) by striking paragraphs (1), (3), (4), and (5);
(B) by redesignating paragraphs (2) and (6) as paragraphs
(1) and (2), respectively; and
(C) in paragraph (1), as redesignated by subparagraph (B)--
(i) by striking ``Annex 1603 of the North American Free
Trade Agreement (in this subsection referred to as
`NAFTA')'' and inserting ``Annex 16-A of the USMCA (as
defined in section 3 of the United States-Mexico-Canada
Agreement Implementation Act)''; and
(ii) by striking the third and fourth sentences and
inserting the following: ``For purposes of this paragraph,
the term `citizen of Mexico' means `citizen' as defined in
article 16.1 of the USMCA.''; and
(2) in subsection (j)(1)--
(A) in the first sentence, by striking ``Annex 1603 of the
North American Free Trade Agreement'' and inserting ``Annex 16-
A of the USMCA (as defined in section 3 of the United States-
Mexico-Canada Agreement Implementation Act)'';
(B) in the second sentence, by striking ``article 1603 of
such Agreement'' and inserting ``article 16.4 of the USMCA'';
and
(C) in the third sentence, by striking ``Annex 1608 of such
Agreement'' and inserting ``article 16.1 of the USMCA''.
(d) Conforming Amendments.--
(1) Integrated entry and exit data system.--Section
110(c)(1)(B) of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1365a(c)(1)(B)) is amended by
striking ``North American Free Trade Agreement'' and inserting
``USMCA (as defined in section 3 of the United States-Mexico-Canada
Agreement Implementation Act)''.
(2) Enhanced border security and visa entry reform act of
2002.--Section 604 of the Enhanced Border Security and Visa Entry
Reform Act of 2002 (8 U.S.C. 1773) is amended by striking ``North
American Free Trade Agreement'' and inserting ``USMCA (as defined
in section 3 of the United States-Mexico-Canada Agreement
Implementation Act)''.
(e) Additional Clerical Amendments.--The table of contents for this
Act is amended by striking the item relating to subtitle A of title III
and inserting the following:
``Subtitle B--Temporary Entry of Business Persons
``Sec. 311. Temporary entry.''.
(f) Effective Date.--
(1) In general.--Each transfer, redesignation, and amendment
made by this section shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a visa issued on or after that
date.
(2) Transition from nafta.--In the case of a visa issued before
the date on which the USMCA enters into force--
(A) the transfers, redesignations, and amendments made by
this section shall not apply with respect to the visa; and
(B) the provisions of law amended by subsections (b)
through (d), as such provisions were in effect on the day
before that date, shall continue to apply on and after that
date with respect to the visa.
SEC. 504. DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING DUTY
CASES.
(a) Clerical Amendment.--Subtitle B of title IV of this Act is
amended in the subtitle heading by striking ``[reserved]''.
(b) References in Subtitle.--Section 401 of the North American Free
Trade Agreement Implementation Act (19 U.S.C. 3431) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after the heading (as amended by subsection (a)) of such
subtitle;
(2) redesignated as section 411; and
(3) amended by striking ``the Agreement'' and inserting ``the
USMCA''.
(c) Organizational and Administrative Provisions.--Section 402 of
the North American Free Trade Agreement Implementation Act (19 U.S.C.
3432) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 411 (as inserted and redesignated by
subsection (b));
(2) redesignated as section 412; and
(3) amended--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) in subparagraph (D), by striking ``in paragraph
1'' and all that follows and inserting ``in paragraph 1
of Annex 10-B.1 and paragraph 1 of Annex 10-B.3; and'';
(II) in subparagraph (E), by striking ``chapter
19'' and inserting ``chapter 10''; and
(III) in the matter following subparagraph (E), by
striking ``in paragraph 1'' and all that follows
through ``Annex 1904.13'' and inserting ``in paragraph
1 of Annex 10-B.1 and paragraph 1 of Annex 10-B.3'';
and
(ii) in paragraph (2)--
(I) in the paragraph heading, by striking ``under''
and all that follows before the period; and
(II) in the text--
(aa) by striking ``paragraph 1 of Annex
1901.2'' and inserting ``paragraph 1 of Annex 10-
B.1'';
(bb) by striking ``chapter 19'' each place it
appears and inserting ``chapter 10''; and
(cc) by striking ``article 1905'' and inserting
``article 10.13'';
(B) in subsection (b)(1)--
(i) by striking ``chapter 19'' each place it appears
and inserting ``chapter 10''; and
(ii) by striking ``article 1905'' and inserting
``article 10.13'';
(C) in subsection (c)--
(i) in paragraph (1)--
(I) by striking ``chapter 19'' each place it
appears and inserting ``chapter 10''; and
(II) by striking ``article 1905'' and inserting
``article 10.13'';
(ii) in paragraph (2)(B)--
(I) by striking ``chapter 19'' each place it
appears and inserting ``chapter 10''; and
(II) in clause (i)(II), by striking ``article
1905'' and inserting ``article 10.13'';
(iii) in paragraph (3)--
(I) in subparagraph (A)(i), by striking ``Annex
1901.2'' and inserting ``Annex 10-B.1'';
(II) in subparagraph (A)(ii), by striking ``under
Annex 1904.13'' and all that follows and inserting
``under Annex 10-B.3 and special committees under
article 10.13.''; and
(III) in subparagraph (B)(i), by striking ``chapter
19'' and inserting ``chapter 10''; and
(iv) in paragraph (4)--
(I) in subparagraph (A), by striking ``chapter 19''
and inserting ``chapter 10''; and
(II) in subparagraph (C)(iv)(III), by striking
``chapter 19'' and inserting ``chapter 10'';
(D) in subsection (d)--
(i) in paragraph (1)--
(I) in subparagraph (A), by striking ``in paragraph
1'' and all that follows and inserting ``in paragraph 1
of Annex 10-B.1 and paragraph 1 of Annex 10-B.3; or'';
and
(II) in subparagraph (B), by striking ``chapter
19'' and inserting ``chapter 10'';
(ii) in paragraph (2)--
(I) in subparagraph (A)(i), by striking ``in
paragraph 1'' and all that follows through ``during''
and inserting ``in paragraph 1 of Annex 10-B.1 and
paragraph 1 of Annex 10-B.3 during'';
(II) in subparagraph (A)(ii)--
(aa) by striking ``chapter 19'' and inserting
``chapter 10''; and
(bb) by striking ``the Agreement'' and
inserting ``the USMCA'';
(III) in subparagraph (A)(iii), by striking
``NAFTA'' and inserting ``USMCA'';
(IV) in subparagraph (B)(i), by striking ``in
paragraph 1'' and all that follows and inserting ``in
paragraph 1 of Annex 10-B.1 and paragraph 1 of Annex
10-B.3; or''; and
(V) in subparagraph (B)(ii), by striking ``chapter
19'' and inserting ``chapter 10''; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by striking ``in paragraph
1'' and all that follows through ``during'' and
inserting ``in paragraph 1 of Annex 10-B.1 and
paragraph 1 of Annex 10-B.3 during''; and
(II) in subparagraph (B), by striking ``chapter
19'' and inserting ``chapter 10'';
(E) in subsection (e), in the matter preceding paragraph
(1)--
(i) by striking ``the Agreement'' and inserting ``the
USMCA'';
(ii) by striking ``between the United States'' and all
that follows through ``NAFTA country''; and
(iii) by striking ``January 3, 1994'' and inserting
``January 3, 2020'';
(F) in subsection (f), by striking ``chapter 19'' and
inserting ``chapter 10'';
(G) in subsection (g), by striking ``chapter 19'' and
inserting ``chapter 10''; and
(H) in subsection (h), by striking ``chapter 19'' and
inserting ``chapter 10''.
(d) Testimony and Production of Papers.--Section 403 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3433) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 412 (as inserted and redesignated by
subsection (c));
(2) redesignated as section 413; and
(3) amended in subsection (a), in the matter preceding
paragraph (1), by striking ``under paragraph 13'' and all that
follows through ``the committee--'' and inserting ``under paragraph
13 of article 10.12, and the allegations before the committee
include a matter referred to in paragraph 13(a)(i) of article
10.12, for the purposes of carrying out its functions and duties
under Annex 10-B.3, the committee--''.
(e) Requests for Review of Determinations.--Section 404 of the
North American Free Trade Agreement Implementation Act (19 U.S.C. 3434)
is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 413 (as inserted and redesignated by
subsection (d));
(2) redesignated as section 414; and
(3) amended--
(A) in the section heading, by striking ``of nafta
countries'';
(B) in subsection (a)--
(i) in paragraph (1), by striking ``article 1911'' and
all that follows and inserting ``article 10.8, of a USMCA
country.''; and
(ii) in paragraph (2), by striking ``article 1908'' and
inserting ``article 10.16'';
(C) in subsection (b), by striking ``article 1904'' and
inserting ``article 10.12''; and
(D) in subsection (c), by striking ``article 1904'' each
place it appears and inserting ``article 10.12''.
(f) Rules of Procedure for Panels and Committees.--Section 405 of
the North American Free Trade Agreement Implementation Act (19 U.S.C.
3435) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 414 (as inserted and redesignated by
subsection (e));
(2) redesignated as section 415; and
(3) amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by striking ``article 1904'' and inserting ``article
10.12'';
(B) in subsection (b), by striking ``Annex 1904.13'' and
inserting ``Annex 10-B.3''; and
(C) in subsection (c), by striking ``Annex 1905.6'' and
inserting ``Annex 10-B.4''.
(g) Subsidy Negotiations.--Section 406 of the North American Free
Trade Agreement Implementation Act (19 U.S.C. 3436) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 415 (as inserted and redesignated by
subsection (f));
(2) redesignated as section 416; and
(3) amended, in the matter preceding paragraph (1), by striking
``NAFTA country'' and inserting ``USMCA country''.
(h) Identification of Industries Facing Subsidized Imports.--
Section 407 of the North American Free Trade Agreement Implementation
Act (19 U.S.C. 3437) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 416 (as inserted and redesignated by
subsection (g));
(2) redesignated as section 417; and
(3) amended--
(A) in subsection (a)(1)(A)--
(i) by striking ``the Agreement'' and inserting ``the
USMCA''; and
(ii) by striking ``NAFTA country'' and inserting
``USMCA country'';
(B) in subsection (c), in the matter following paragraph
(3), by striking ``NAFTA countries'' and inserting ``USMCA
countries''; and
(C) in subsection (d)(3), by striking ``the Agreement'' and
inserting ``the USMCA''.
(i) Treatment of Amendments to Law.--Section 408 of the North
American Free Trade Agreement Implementation Act (19 U.S.C. 3438) is--
(1) transferred to subtitle B of title IV of this Act and
inserted after section 417 (as inserted and redesignated by
subsection (h));
(2) redesignated as section 418; and
(3) amended--
(A) in the matter preceding paragraph (1), by striking
``the Agreement'' and all that follows through ``United
States'' and inserting ``the USMCA''; and
(B) in the flush text, by striking ``NAFTA country'' and
inserting ``USMCA country''.
(j) Additional Clerical Amendments.--The table of contents for this
Act is amended by striking the item relating to subtitle B of title IV
and inserting the following:
``Subtitle B--Dispute Settlement
``Sec. 411. References in subtitle.
``Sec. 412. Organizational and administrative provisions.
``Sec. 413. Testimony and production of papers in extraordinary
challenges.
``Sec. 414. Requests for review of determination by competent
investigating authorities.
``Sec. 415. Rules of procedure for panels and committees.
``Sec. 416. Subsidy negotiations.
``Sec. 417. Identification of industries facing subsidized imports.
``Sec. 418. Treatment of amendments to antidumping and countervailing
duty law.''.
(k) Effective Date.--
(1) In general.--Each transfer, redesignation, and amendment
made by this section shall take effect on the date on which the
USMCA enters into force, but shall not apply--
(A) to any final determination described in paragraph
(1)(B) or clause (i), (ii), or (iii) of paragraph (2)(B) of
section 516A(a) of the Tariff Act of 1930 (19 U.S.C. 1516a(a))
notice of which is published in the Federal Register before
such date, or to a determination described in paragraph
(2)(B)(vi) of that section notice of which is received by the
Government of Canada or Mexico before such date; and
(B) to any binational panel review under NAFTA, or any
extraordinary challenge arising out of any such review, that
was commenced before such date.
(2) Transition from nafta.--The transfers, redesignations, and
amendments made by this section shall not apply, and the provisions
of title IV of the North American Free Trade Agreement
Implementation Act, as in effect on the day before the date on
which the USMCA enters into force, shall continue to apply on and
after that date with respect--
(A) to any final determination described in paragraph
(1)(B) or clause (i), (ii), or (iii) of paragraph (2)(B) of
section 516A(a) of the Tariff Act of 1930 (19 U.S.C. 1516a(a))
notice of which is published in the Federal Register before
such date, or to a determination described in paragraph
(2)(B)(vi) of that section notice of which is received by the
Government of Canada or Mexico before the date on which the
USMCA enters into force; and
(B) to any binational panel review under NAFTA, or any
extraordinary challenge arising out of any such review, that
was commenced before the date on which the USMCA enters into
force.
SEC. 505. GOVERNMENT PROCUREMENT.
(a) General Authority To Modify Discriminatory Purchasing
Requirements.--Section 301 of the Trade Agreements Act of 1979 (19
U.S.C. 2511) is amended--
(1) in subsection (b)(1), by striking ``the North American Free
Trade Agreement'' and inserting ``the USMCA (as defined in section
3 of the United States-Mexico-Canada Agreement Implementation
Act)''; and
(2) in subsection (e)--
(A) by striking ``Annex 1001.1a-2 of the North American
Free Trade Agreement'' and inserting ``Annex 13-A of the USMCA
(as defined in section 3 of the United States-Mexico-Canada
Agreement Implementation Act)''; and
(B) by striking ``chapter 10 of such Agreement'' and
inserting ``chapter 13 of the USMCA''.
(b) Definitions.--Section 308(4)(A)(ii) of the Trade Agreements Act
of 1979 (19 U.S.C. 2518(4)(A)(ii)) is amended--
(1) by striking ``a party to the North American Free Trade
Agreement,'' and inserting ``Mexico, as a party to the USMCA (as
defined in section 3 of the United States-Mexico-Canada Agreement
Implementation Act),''; and
(2) by striking ``the North American Free Trade Agreement for''
and inserting ``the USMCA for''.
(c) Effective Date.--
(1) In general.--The amendments made by subsections (a) and (b)
shall--
(A) take effect on the date on which the USMCA enters into
force; and
(B) apply with respect to a procurement on or after that
date.
(2) Transition from nafta treatment.--In the case of a
procurement before the date on which the USMCA enters into force--
(A) the amendments made by subsections (a) and (b) to
sections 301 and 308 of the Trade Agreements Act of 1979 (19
U.S.C. 2511 and 2518) shall not apply with respect to the
contract; and
(B) sections 301 and 308 of such Act, as in effect on the
day before that date, shall continue to apply on and after that
date with respect to the contract.
SEC. 506. ACTIONS AFFECTING UNITED STATES CULTURAL INDUSTRIES.
(a) In General.--Section 182(f) of the Trade Act of 1974 (19 U.S.C.
2242(f)) is amended--
(1) in paragraph (1)(C), by striking ``article 2106 of the
North American Free Trade Agreement'' and inserting ``article 32.6
of the USMCA (as defined in section 3 of the United States-Mexico-
Canada Agreement Implementation Act)''; and
(2) in paragraph (2), in the matter preceding subparagraph (A),
by striking ``article 2106 of the North American Free Trade
Agreement'' and inserting ``article 32.6 of the USMCA''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date on which the USMCA enters into force.
SEC. 507. REGULATORY TREATMENT OF URANIUM PURCHASES.
(a) In General.--Section 1017(c) of the Energy Policy Act of 1992
(42 U.S.C. 2296b-6(c)) is amended by striking ``North American Free
Trade Agreement'' and inserting ``USMCA (as defined in section 3 of the
United States-Mexico-Canada Agreement Implementation Act)''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date on which the USMCA enters into force.
SEC. 508. REPORT ON AMENDMENTS TO EXISTING LAW.
Not later than 180 days after the date of the enactment of this
Act, the Trade Representative shall submit to the Committee on Finance
of the Senate and the Committee on Ways and Means of the House of
Representatives a report setting forth a proposal for technical and
conforming amendments to the laws under the jurisdiction of such
committees, and other laws, necessary to fully carry out the provisions
of, and amendments made by, this Act.
TITLE VI--TRANSITION TO AND EXTENSION OF USMCA
Subtitle A--Transitional Provisions
SEC. 601. REPEAL OF NORTH AMERICAN FREE TRADE AGREEMENT
IMPLEMENTATION ACT.
The North American Free Trade Agreement Implementation Act (Public
Law 103-182; 19 U.S.C. 3301 et seq.) is repealed, effective on the date
on which the USMCA enters into force.
SEC. 602. CONTINUED SUSPENSION OF THE UNITED STATES-CANADA FREE-
TRADE AGREEMENT.
Section 501(c)(3) of the United States-Canada Free-Trade Agreement
Implementation Act of 1988 (Public Law 100-449; 19 U.S.C. 2112 note) is
amended--
(1) in the paragraph heading, by striking ``nafta'' and
inserting ``usmca''; and
(2) in the matter preceding subparagraph (A), by striking
``between them of the North American Free Trade Agreement'' and
inserting ``of the USMCA (as defined in section 3 of the United
States-Mexico-Canada Agreement Implementation Act)''.
Subtitle B--Joint Reviews Regarding Extension of USMCA
SEC. 611. PARTICIPATION IN JOINT REVIEWS WITH CANADA AND MEXICO
REGARDING EXTENSION OF THE TERM OF THE USMCA AND OTHER ACTION
REGARDING THE USMCA.
(a) In General.--Pursuant to the requirements of this section, the
President shall consult with the appropriate congressional committees
and stakeholders before each joint review, including consultation with
respect to--
(1) any recommendation for action to be proposed at the review;
and
(2) the decision whether or not to confirm that the United
States wishes to extend the USMCA.
(b) Consultations With Congress and Stakeholders.--
(1) Publication and public hearing.--At least 270 days before a
joint review commences, the Trade Representative shall publish in
the Federal Register a notice regarding the joint review and shall,
as soon as possible following such publication, provide opportunity
for the presentation of views relating to the operation of the
USMCA, including a public hearing.
(2) Report to congress.--At least 180 days before a 6-year
joint review under article 34.7 of the USMCA commences, the Trade
Representative shall report to the appropriate congressional
committees regarding--
(A) the assessment of the Trade Representative with respect
to the operation of the USMCA;
(B) the precise recommendation for action to be proposed at
the review and the position of the United States with respect
to whether to extend the term of the USMCA;
(C) what, if any, prior efforts have been made to resolve
any concern that underlies that recommendation or position; and
(D) the views of the advisory committees established under
section 135 of the Trade Act of 1974 (19 U.S.C. 2155) regarding
that recommendation or position.
(c) Subsequent Action To Address Lack of Agreement on Term
Extension.--
(1) In general.--If, as part of a joint review, any USMCA
country does not confirm that the country wishes to extend the term
of the USMCA under article 34.7.3 of the USMCA, at least 70 days
before any subsequent annual joint review meeting conducted as
required under article 34.7 of the USMCA, the Trade Representative
shall report to the appropriate congressional committees
regarding--
(A) any reason offered by a USMCA country regarding why the
country is unable to agree to extend the term of the USMCA;
(B) the progress that has been made in efforts to achieve
resolution of the concerns of that country;
(C) any proposed action that the Trade Representative
intends to raise during the meeting; and
(D) the views of the advisory committees established under
section 135 of the Trade Act of 1974 (19 U.S.C. 2155) regarding
the reasons described in subparagraph (A) and any proposed
action under subparagraph (C).
(2) Additional information.--The Trade Representative shall
also provide detailed and timely information in response to any
questions posed by the appropriate congressional committees with
respect to any meeting described in paragraph (1), including by
submitting to those committees copies of any proposed text that the
Trade Representative plans to submit to the other parties to the
meeting.
(d) Congressional Engagement After Joint Review.--
(1) In general.--Not later than 20 days after the USMCA
countries have met for a joint review, the Trade Representative
shall brief the appropriate congressional committees regarding the
positions expressed by the countries during the joint review and
what, if any, actions were agreed to by the countries.
(2) Continued engagement.--After a joint review, the Trade
Representative shall keep the appropriate congressional committees
timely apprised of any developments arising out of or related to
the review.
(e) Definitions.--In this section:
(1) Joint review.--The term ``joint review'' means a review
conducted under the process provided for in article 34.7 of the
USMCA relating to extension of the term of the USMCA.
(2) USMCA country.--The term ``USMCA country'' has the meaning
given that term in section 202(a).
Subtitle C--Termination of USMCA
SEC. 621. TERMINATION OF USMCA.
(a) Termination of USMCA Country Status.--During any period in
which a country ceases to be a USMCA country, this Act (other than this
subsection and title IX) and the amendments made by this Act shall
cease to have effect with respect to that country.
(b) Termination of USMCA.--On the date on which the USMCA ceases to
be in force with respect to the United States, this Act and the
amendments made by this Act (other than this subsection and title IX)
shall cease to have effect.
TITLE VII--LABOR MONITORING AND ENFORCEMENT
SEC. 701. DEFINITIONS.
In this title:
(1) Labor attache.--The term ``labor attache'' means an
individual hired under subtitle B.
(2) Labor obligations.--The term ``labor obligations'' means
the obligations under chapter 23 of the USMCA (relating to labor).
(3) Mexico's labor reform.--The term ``Mexico's labor reform''
means the legislation on labor reform enacted by Mexico on May 1,
2019.
Subtitle A--Interagency Labor Committee for Monitoring and Enforcement
SEC. 711. INTERAGENCY LABOR COMMITTEE FOR MONITORING AND
ENFORCEMENT.
(a) Establishment.--Not later than 90 days after the date of the
enactment of this Act, the President shall establish an Interagency
Labor Committee for Monitoring and Enforcement (in this title referred
to as the ``Interagency Labor Committee''), to coordinate United States
efforts with respect to each USMCA country--
(1) to monitor the implementation and maintenance of the labor
obligations;
(2) to monitor the implementation and maintenance of Mexico's
labor reform; and
(3) to request enforcement actions with respect to a USMCA
country that is not in compliance with such labor obligations.
(b) Membership.--The Interagency Labor Committee shall--
(1) be co-chaired by the Trade Representative and the Secretary
of Labor; and
(2) include representatives of such other Federal departments
or agencies with relevant expertise as the President determines
appropriate.
(c) Meetings.--The Interagency Labor Committee shall meet at least
once every 90 days during the 5-year period beginning on the date of
the enactment of this Act, and at least once every 180 days thereafter
for 5 years.
(d) Information Sharing.--Notwithstanding any other provision of
law, the members of the Interagency Labor Committee may exchange
information for purposes of carrying out this title.
SEC. 712. DUTIES.
The duties of the Interagency Labor Committee shall include the
following:
(1) Coordinating the activities of departments and agencies of
the Committee in monitoring implementation of and compliance with
labor obligations, including by--
(A) requesting and reviewing relevant information from the
governments of USMCA countries and from the public;
(B) coordinating visits to Mexico as necessary to assess
implementation of Mexico's labor reform and compliance with the
labor obligations of Mexico;
(C) receiving and reviewing quarterly assessments from the
labor attaches with respect to the implementation of and
compliance with Mexico's labor reform; and
(D) coordinating with the Secretary of Treasury with
respect to support relating to labor issues provided to Mexico
by the Inter-American Development Bank.
(2) Establishing an ongoing dialogue with appropriate officials
of the Government of Mexico regarding the implementation of
Mexico's labor reform and compliance with its labor obligations.
(3) Coordinating with other institutions and governments with
respect to support relating to labor issues, such as the
International Labour Organization and the Government of Canada.
(4) Identifying priority issues for capacity-building
activities in Mexico to be funded by the United States, drawing
primarily on the expertise of the Department of Labor.
(5) Meeting, at least biannually during the 5-year period
beginning on the date of the enactment of this Act and at least
annually for 5 years thereafter, with the Labor Advisory Committee
for Trade Negotiations and Trade Policy established under section
135(c)(1) of the Trade Act of 1974 (19 U.S.C. 2155(c)(1)) (or any
successor advisory committee) to consult and provide opportunities
for input with respect to--
(A) the implementation of Mexico's labor reform;
(B) labor capacity-building activities in Mexico funded by
the United States;
(C) labor monitoring efforts;
(D) labor enforcement priorities; and
(E) other relevant issues.
(6) Based on the assessments required by section 714, making
recommendations relating to dispute settlement actions to the Trade
Representative, in accordance with section 715.
(7) Based on reports provided by the Forced Labor Enforcement
Task Force under section 743, developing recommendations for
appropriate enforcement actions by the Trade Representative.
(8) Reviewing reports submitted by the labor experts appointed
in accordance with Annex 31-A of the USMCA, with respect to the
functioning of that Annex.
(9) Reviewing reports submitted by the Independent Mexico Labor
Expert Board under section 734.
SEC. 713. ENFORCEMENT PRIORITIES.
The Interagency Labor Committee shall--
(1) review the list of priority sectors under Annex 31-A of the
USMCA and suggest to USTR additional sectors for review by the
USMCA countries as appropriate;
(2) establish and annually update a list of priority subsectors
within such priority sectors to be the focus of the enforcement
efforts of the Committee, the first of which shall consist of--
(A) auto assembly;
(B) auto parts;
(C) aerospace;
(D) industrial bakeries;
(E) electronics;
(F) call centers;
(G) mining; and
(H) steel and aluminum; and
(3) review priority facilities within such priority subsectors
for monitoring and enforcement.
SEC. 714. ASSESSMENTS.
(a) Ongoing Assessments.--For the 10-year period beginning on the
date of the enactment of this Act, except as provided in subsection
(b), the Interagency Labor Committee shall assess on a biannual basis
the extent to which Mexico is in compliance with its obligations under
Annex 23-A of the USMCA.
(b) Consultation Relating to Annual Assessment.--On or after the
date that is 5 years after the date of the enactment of this Act, the
Interagency Labor Committee may consult with the appropriate
congressional committees with respect to the frequency of the
assessment required under subsection (a) and, with the approval of both
such committees, may conduct such assessment on an annual basis for the
following 5 years.
(c) Matters To Be Included.--The assessment required under
subsection (a) shall also include each of the following:
(1) Whether Mexico is providing adequate funding to implement
and enforce Mexico's labor reform, including specifically whether
Mexico has provided funding consistent with commitments made to
contribute the following amounts for the labor reform
implementation budget:
(A) $176,000,000 for 2021.
(B) $325,000,000 for 2022.
(C) $328,000,000 for 2023.
(2) The extent to which any legal challenges to Mexico's labor
reform have succeeded in that court system.
(3) The extent to which Mexico has implemented the federal and
state labor courts, registration entity, and federal and state
conciliation centers consistent with the timeline set forth for
Mexico's labor reform, in the September 2019 policy statements by
the Government of Mexico on a national strategy for implementation
of the labor justice system, and in subsequent policy statements in
accordance with Mexico's labor reform.
SEC. 715. RECOMMENDATION FOR ENFORCEMENT ACTION.
(a) Recommendation To Initiate.--If the Interagency Labor Committee
determines, pursuant to an assessment under section 714, as a result of
monitoring activities described in section 712(1), or pursuant to a
report of the Independent Mexico Labor Expert Board that a USMCA
country has failed to meets its labor obligations, including with
respect to obligations under Annex 23-A of the USMCA, the Committee
shall recommend that the Trade Representative initiate enforcement
actions under--
(1) article 23.13 or 23.17 of the USMCA (relating to
cooperative labor dialogue and labor consultations);
(2) articles 31.4 and 31.6 of the USMCA (relating to dispute
settlement consultations); or
(3) Annex 31-A of the USMCA (relating to the rapid response
labor mechanism).
(b) Trade Representative Determinations.--Not later than 60 days
after the date on which the Trade Representative receives a
recommendation pursuant to subsection (a), the Trade Representative
shall--
(1) determine whether to initiate an enforcement action; and
(2) if such determination is negative, submit to the
appropriate congressional committees a report on the reasons for
such negative determination.
SEC. 716. PETITION PROCESS.
(a) In General.--The Interagency Labor Committee shall establish
procedures for submissions by the public of information with respect to
potential failures to implement the labor obligations of a USMCA
country.
(b) Facility-Specific Petitions.--With respect to information
submitted in accordance with the procedures established under
subsection (a) accompanying a petition relating to a denial of rights
at a covered facility, as such terms are defined for purposes of Annex
31-A of the USMCA:
(1) The Interagency Labor Committee shall review such
information within 30 days of submission and shall determine
whether there is sufficient, credible evidence of a denial of
rights (as so defined) enabling the good-faith invocation of
enforcement mechanisms.
(2) If the Committee reaches a negative determination under
paragraph (1), the Committee shall certify such determination to
the appropriate congressional committees and the petitioner.
(3) If the Committee reaches an affirmative determination under
paragraph (1), the Trade Representative shall submit a request for
review, in accordance with article 31-A.4 of such Annex, with
respect to the covered facility and shall inform the petitioner and
the appropriate congressional committees of the submission of such
request.
(4) Not later than 60 days after the date of an affirmative
determination under paragraph (1), the Trade Representative shall--
(A) determine whether to request the establishment of a
rapid response labor panel in accordance with such Annex; and
(B) if such determination is negative, certify such
determination to the appropriate congressional committees in
conjunction with the reasons for such determination and the
details of any agreed-upon remediation plan.
(c) Other Petitions.--With respect to information submitted in
accordance with the procedures established under subsection (a)
accompanying a petition relating to any other violation of the labor
obligations of a USMCA country:
(1) The Interagency Labor Committee shall review such
information not later than 20 days after the date of the submission
and shall determine whether the information warrants further
review.
(2) If the Committee reaches an affirmative determination under
paragraph (1), such further review shall focus exclusively on
determining, not later than 60 days after the date of such
submission, whether there is sufficient, credible evidence that the
USMCA country is in violation of its labor obligations, for
purposes of initiating enforcement action under chapter 23 or
chapter 31 of the USMCA.
(3) If the Committee reaches an affirmative determination under
paragraph (2), the Trade Representative shall--
(A) not later than 60 days after the date of the
determination of the Committee, initiate appropriate
enforcement action under such chapter 23 or chapter 31; or
(B) submit to the appropriate congressional committees a
notification including the reasons for which action was not
initiated within such 60-day period.
SEC. 717. HOTLINE.
The Interagency Labor Committee shall establish a web-based
hotline, monitored by the Department of Labor, to receive confidential
information regarding labor issues among USMCA countries directly from
interested parties, including Mexican workers.
SEC. 718. REPORTS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter for 10 years
except as provided in subsection (b), the Interagency Labor Committee
shall submit to the appropriate congressional committees a report that
includes--
(1) a description of Committee staffing and capacity building
activities with Mexico;
(2) information regarding the budget resources for Mexico's
labor reform and the deadlines in the September 2019 policy
statements by the Government of Mexico on a national strategy for
implementation of the labor justice system and in subsequent policy
statements in accordance with Mexico's labor reform;
(3) a summary of petitions filed in accordance with section 716
and the use of the rapid response labor mechanism under Annex 31-A
of the USMCA;
(4) the results of the most recent assessment conducted under
section 714; and
(5) if, with respect to any report of the Independent Mexico
Labor Expert Board submitted under section 734 that includes a
determination described in paragraph (2) of such section, the
Interagency Labor Committee does not concur with such
determination, an explanation of the reasons for not concurring in
such determination and a commitment to provide an oral briefing
with respect to such explanation upon request.
(b) Consultation Relating to Annual Assessment.--On or after the
date that is 5 years after the date of the enactment of this Act, the
Trade Representative and the Secretary of Labor may consult with the
appropriate congressional committees with respect to the frequency of
the reports required under subsection (a) and, with the approval of
both such committees, may submit such report on an annual basis for the
following 5 years.
(c) Five-Year Assessment.--Not later than the date that is 5 years
after the date of the establishment of the Interagency Labor Committee
pursuant to section 711(a), the Committee shall jointly submit to the
appropriate congressional committees--
(1) a comprehensive assessment of the implementation of
Mexico's labor reform, including with respect to--
(A) whether Mexico has reviewed and legitimized all
existing collective bargaining agreements in Mexico;
(B) whether Mexico has addressed the pre-existing legal or
administrative labor disputes;
(C) whether Mexico has established the Federal Center for
Conciliation and Labor Registration, and an assessment of that
Center's operation;
(D) whether Mexico has established the federal labor
courts, and an assessment of their operation; and
(E) whether Mexico has established the state conciliation
centers and labor courts in all states and an assessment of
their operation; and
(2) a strategic plan and recommendations for actions to address
areas of concern relating to the implementation of Mexico's labor
reform, for purposes of the joint review conducted pursuant to
article 34.7 of the USMCA on the sixth anniversary of the entry
into force of the USMCA.
SEC. 719. CONSULTATIONS ON APPOINTMENT AND FUNDING OF RAPID
RESPONSE LABOR PANELISTS.
(a) In General.--The Interagency Labor Committee shall consult with
the Labor Advisory Committee established under section 135(c)(1) of the
Trade Act of 1974 (19 U.S.C. 2155(c)(1)) and the Advisory Committee for
Trade Policy and Negotiations established under section 135(b) of such
Act (or successor advisory committees) and the appropriate
congressional committees with respect to the selection and appointment
of candidates for the rapid response labor panelists described in Annex
31-A of the USMCA.
(b) Funding.--The United States, in consultation with Mexico, shall
provide adequate funding for rapid response labor panelists to carry
out the responsibilities under the USMCA promptly and fully.
Subtitle B--Mexico Labor Attaches
SEC. 721. ESTABLISHMENT.
The Secretary of Labor shall--
(1) hire and fix the compensation of up to 5 additional full-
time officers or employees of the Department of Labor; and
(2) detail or assign such officers or employees to the United
States Embassy or a United States Consulate in Mexico to carry out
the duties described in section 722.
SEC. 722. DUTIES.
The duties described in this section are the following:
(1) Assisting the Interagency Labor Committee to monitor and
enforce the labor obligations of Mexico.
(2) Submitting to the Interagency Labor Committee on a
quarterly basis reports on the efforts undertaken by Mexico to
comply with its labor obligations.
SEC. 723. STATUS.
Any officer or employee, while detailed or assigned under this
subtitle, shall be considered, for the purpose of preserving their
allowances, privileges, rights, seniority, and other benefits as such,
an officer or employee of the United States Government and of the
agency of the United States Government from which detailed or assigned,
and shall continue to receive compensation, allowances, and benefits
from program funds appropriated to that agency or made available to
that agency for purposes related to the activities of the detail or
assignment, in accordance with authorities related to their employment
status and agency policies.
Subtitle C--Independent Mexico Labor Expert Board
SEC. 731. ESTABLISHMENT.
There is hereby established a board, to be known as the
``Independent Mexico Labor Expert Board'', to be responsible for
monitoring and evaluating the implementation of Mexico's labor reform
and compliance with its labor obligations. The Board shall also advise
the Interagency Labor Committee with respect to capacity-building
activities needed to support such implementation and compliance.
SEC. 732. MEMBERSHIP; TERM.
(a) Membership.--The Board shall be composed of 12 members who
shall be appointed as follows:
(1) Four members to be appointed by the Labor Advisory
Committee established under section 135(c)(1) of the Trade Act of
1974 (19 U.S.C. 2155(c)(1)) (or successor advisory committee).
(2) Two members appointed by the Speaker of the House of
Representatives, in consultation with the Chair of the Committee on
Ways and Means of the House of Representatives.
(3) Two members appointed by the president pro tempore of the
Senate from among individuals recommended by the majority leader of
the Senate and in consultation with the Chair of the Committee on
Finance of the Senate.
(4) Two members appointed by the minority leader of the House
of Representatives, in consultation with the Ranking Member of the
Committee on Ways and Means of the House of Representatives.
(5) Two members appointed by the President pro tempore of the
Senate from among individuals recommended by the minority leader of
the Senate and in consultation with the Ranking Member of the
Committee on Finance of the Senate.
(b) Term.--Except as provided in subsection (c), members of the
Board shall serve for a term of 6 years.
(c) Extension of Term.--If the Board determines, at the end of the
6-year period beginning on the date of the appointment of the last
member appointed in accordance with subsection (a), that Mexico is not
fully in compliance with its labor obligations, a majority of the
members of the Board may determine to extend its term for 4 additional
years. A new Board shall be appointed in accordance with subsection (a)
and shall serve for a single term of 4 years.
SEC. 733. FUNDING.
The United States shall provide necessary funding to support the
work of the Board, including with respect to translation services and
personnel support.
SEC. 734. REPORTS.
For the 6-year period beginning on the date of the enactment of
this Act, and for an additional 4 years if the term of the Board is
extended in accordance with section 732(c), the Board shall submit to
appropriate congressional committees and to the Interagency Labor
Committee an annual report that--
(1) contains an assessment of--
(A) the efforts of Mexico to implement Mexico's labor
reform; and
(B) the manner and extent to which labor laws are generally
enforced in Mexico; and
(2) may include a determination that Mexico is not in
compliance with its labor obligations.
Subtitle D--Forced Labor
SEC. 741. FORCED LABOR ENFORCEMENT TASK FORCE.
(a) Establishment.--Not later than 90 days after the date of the
enactment of this Act, the President shall establish a Forced Labor
Enforcement Task Force to monitor United States enforcement of the
prohibition under section 307 of the Tariff Act of 1930 (19 U.S.C.
1307).
(b) Members; Meetings.--
(1) Members.--The Task Force shall be chaired by the Secretary
of Homeland Security and shall be comprised of representatives from
such other agencies with relevant expertise, including the Office
of the United States Trade Representative and the Department of
Labor, as the President determines appropriate.
(2) Meetings.--The Task Force shall meet on a quarterly basis
regarding active Withhold and Release Orders, ongoing
investigations, petitions received, and enforcement priorities, and
other relevant issues with respect to enforcing the prohibition
under section 307 of the Tariff Act.
SEC. 742. TIMELINE REQUIRED.
(a) In General.--Not later than 90 days after the establishment of
the Forced Labor Enforcement Task Force pursuant to section 741(a), the
Task Force shall establish timelines for responding to petitions
submitted to the Commissioner of U.S. Customs and Border Protection
alleging that goods are being imported by or with child or forced
labor.
(b) Consultation Required.--In establishing the timelines during
such 90-day period, the Task Force shall consult with the appropriate
congressional committees.
(c) Report.--The Task Force shall timely submit to the appropriate
congressional committees a report that contains the timelines
established pursuant to subsection (a) and shall make such report
publicly available.
SEC. 743. REPORTS REQUIRED.
The Forced Labor Enforcement Task Force shall submit to appropriate
congressional committees a biannual report that includes the following:
(1) The enforcement activities and priorities of the Department
of Homeland Security with respect to enforcing the prohibition
under section 307 of the Tariff Act of 1930 (19 U.S.C. 1307).
(2) The number of instances in which merchandise was denied
entry pursuant to such prohibition during the preceding 180-day
period.
(3) A description of the merchandise so denied entry.
(4) An enforcement plan regarding goods included in the most
recent ``Findings on the Worst Forms of Child Labor'' report
submitted in accordance with section 504 of the Trade Act of 1974
(19 U.S.C. 2464) and ``List of Goods Produced by Child Labor or
Forced Labor'' submitted in accordance with section 105(b)(2)(C) of
the Trafficking Victims Protection Reauthorization Act of 2005 (22
U.S.C. 7112(b)(2)(C)).
(5) Such other information as the Forced Labor Enforcement Task
Force considers appropriate with respect to monitoring and
enforcing compliance with section 307 of the Tariff Act of 1930 (19
U.S.C. 1307).
SEC. 744. DUTIES RELATED TO MEXICO.
The Task Force shall--
(1) develop, in consultation with the appropriate congressional
committees, an enforcement plan regarding goods produced by or with
forced labor in Mexico; and
(2) report to the Interagency Labor Committee with respect to
any concerns relating to the enforcement of the prohibition under
section 307 of the Tariff Act with respect to Mexico, including any
allegations that may be filed with respect to forced labor in
Mexico.
Subtitle E--Enforcement Under Rapid Response Labor Mechanism
SEC. 751. TRANSMISSION OF REPORTS.
Each report issued by a rapid response labor panel constituted in
accordance with Annex 31-A of the USMCA shall be immediately submitted
to the appropriate congressional committees, the Labor Advisory
Committee established under section 135(c)(1) of the Trade Act of 1974
(19 U.S.C. 2155(c)(1)) (or successor advisory committee), and, as
appropriate, the petitioner submitting information pursuant to section
716. The Trade Representative shall also make each such report publicly
available in a timely manner.
SEC. 752. SUSPENSION OF LIQUIDATION.
(a) In General.--If the United States files a request pursuant to
article 31-A.4.2 of Annex 31-A of the USMCA, the Trade Representative
may direct the Secretary of the Treasury to suspend liquidation for
unliquidated entries of goods from such covered facility until such
time as the Trade Representative notifies the Secretary that a
condition described in subsection (b) has been met.
(b) Resumption of Liquidation.--The conditions described in this
subsection are the following:
(1) The rapid response labor panel has determined that there is
no denial of rights at the covered facility within the meaning of
such terms under Annex 31-A of the USMCA.
(2) A course of remediation for denial of rights has been
agreed to and has been completed in accordance with the agreed-upon
time.
(3) The denial of rights has been otherwise remedied.
SEC. 753. FINAL REMEDIES.
(a) In General.--If a rapid response labor panel constituted in
accordance with Annex 31-A of the USMCA determines with respect to a
case that there has been a denial of rights within the meaning of such
Annex, the Trade Representative may, in consultation with the
appropriate congressional committees--
(1) direct the Secretary of the Treasury, until the date of the
notification described in subsection (b) and in accordance with
Annex 31-A of the USMCA--
(A) to--
(i) deny entry to goods, produced wholly or in part,
from any covered facility involved in such case; or
(ii) allow for the release of goods, produced wholly or
in part, from such covered facilities only upon payment of
duties and any penalty; and
(B) to apply any duties or penalties to customs entries for
which liquidation was suspended pursuant to section 752; and
(2) apply other remedies that are appropriate and available
under Annex 31-A of the USMCA, until the denial of rights with
respect to the case has been remedied.
(b) Remediation Notification.--The Trade Representative shall
promptly notify the Secretary when the denial of rights with respect to
a case described in subsection (a) has been remedied.
TITLE VIII--ENVIRONMENT MONITORING AND ENFORCEMENT
SEC. 801. DEFINITIONS.
In this title:
(1) Environmental law.--The term ``environmental law'' has the
meaning given the term in article 24.1 of the USMCA.
(2) Environmental obligations.--The term ``environmental
obligations'' means obligations relating to the environment under--
(A) chapter 1 of the USMCA (relating to initial provisions
and general definitions); and
(B) chapter 24 of the USMCA (relating to environment).
Subtitle A--Interagency Environment Committee for Monitoring and
Enforcement
SEC. 811. ESTABLISHMENT.
(a) In General.--Not later than 30 days after the date of the
enactment of this Act, the President shall establish an Interagency
Environment Committee for Monitoring and Enforcement (in this title
referred to as the ``Interagency Environment Committee'')--
(1) to coordinate United States efforts to monitor and enforce
environmental obligations generally; and
(2) with respect to the USMCA countries--
(A) to carry out an assessment of their environmental laws
and policies;
(B) to carry out monitoring actions with respect to the
implementation and maintenance of their environmental
obligations; and
(C) to request enforcement actions with respect to USMCA
countries that are not in compliance with their environmental
obligations.
(b) Membership.--The members of the Interagency Environment
Committee shall be the following:
(1) The Trade Representative, who shall serve as chairperson.
(2) Representatives from each of the following:
(A) The National Oceanic Atmospheric Administration.
(B) The U.S. Fish and Wildlife Service.
(C) The U.S. Forest Service.
(D) The Environmental Protection Agency.
(E) The Animal and Plant Health Inspection Service.
(F) U.S. Customs and Border Protection.
(G) The Department of State.
(H) The Department of Justice.
(I) The Department of the Treasury.
(J) The United States Agency for International Development.
(3) Representatives from other Federal agencies, as the
President determines to be appropriate.
(c) Information Sharing.--Notwithstanding any other provision of
law, the members of the Interagency Environment Committee may exchange
information for purposes of carrying out this subtitle.
SEC. 812. ASSESSMENT.
(a) In General.--The Interagency Environment Committee shall carry
out an assessment of the environmental laws and policies of the USMCA
countries--
(1) to determine if such laws and policies are sufficient to
implement their environmental obligations; and
(2) to identify any gaps between such laws and policies and
their environmental obligations.
(b) Matters To Be Included.--The assessment required by subsection
(a) shall identify the environmental laws and policies of the USMCA
countries with respect to which enhanced cooperation, including the
provision of technical assistance and capacity building assistance,
monitoring actions, and enforcement actions, if appropriate, should be
carried out on an enhanced and continuing basis.
(c) Report.--Not later than 90 days after the date on which the
Interagency Environment Committee is established, or the date on which
the USMCA enters into force, whichever occurs earlier, the Interagency
Environment Committee shall submit a report that contains the
assessment required by subsection (a) to--
(1) the appropriate congressional committees; and
(2) the Trade and Environment Policy Advisory Committee (or
successor advisory committee) established under section 135(c)(1)
of the Trade Act of 1974 (19 U.S.C. 2155(c)(1)).
(d) Update.--The Interagency Environment Committee shall--
(1) update the assessment required by subsection (a) at the
appropriate time prior to submission of the report required by
section 816(a) that is to be submitted in the fifth year after the
USMCA enters into force; and
(2) submit the updated assessment to the Trade Representative
for inclusion in such fifth annual report.
(e) Consultation.--The Interagency Environment Committee shall
consult on a regular basis with the USMCA countries--
(1) in carrying out the assessment required by subsection (a)
and the update to the assessment required by subsection (d); and
(2) in preparing the report required by subsection (c).
SEC. 813. MONITORING ACTIONS.
(a) In General.--The Interagency Environment Committee shall carry
out monitoring actions, which shall include the monitoring actions
described in subsections (b), (c), and (d), with respect to the
implementation and maintenance of the environmental obligations of the
USMCA countries.
(b) Review of CEC Secretariat Submissions.--
(1) In general.--Not later than 30 days after the date on which
the Secretariat of the Commission for Environmental Cooperation
prepares a factual record under article 24.28 of the USMCA relating
to a submission filed under article 24.27 of the USMCA with respect
to a USMCA country, the Interagency Environment Committee--
(A) shall review the factual record; and
(B) may, based on findings of the review under subparagraph
(A) that the USMCA country is not in compliance with its
environmental obligations, request enforcement actions under
section 814 with respect to the USMCA country.
(2) Written justification.--If the Interagency Environment
Committee finds that a USMCA country is not in compliance with its
environmental obligations under paragraph (1)(B) and determines not
to request enforcement actions under section 814 with respect to
the USMCA country, the Committee shall, not later than 30 days
after the date on which it makes the determination, provide to the
appropriate congressional committees a written explanation and
justification of the determination.
(c) Review of Reports of United States Environment Attaches to
Mexico.--The Interagency Environment Committee shall--
(1) review each report submitted to the Committee under section
822(b)(2); and
(2) based on the findings of each such report, assess the
efforts of Mexico to comply with its environmental obligations.
(d) United States Implementation of Environment Cooperation and
Customs Verification Agreement.--
(1) Verification of shipments.--The Interagency Environment
Committee--
(A) may request verification of particular shipments of
Mexico under the Environment Cooperation and Customs
Verification Agreement between the United States and Mexico,
done at Mexico City on December 10, 2019, in response to--
(i) comments submitted by the public to request
verification of particular shipments of Mexico under such
Agreement; or
(ii) on its own motion; and
(B) upon receipt of comments described in subparagraph
(A)(i)--
(i) shall review the comments not later than 30 days
after the date on which the comments are submitted to the
Trade Representative; and
(ii) may request the Trade Representative to, within a
reasonable period of time, request Mexico to provide
relevant information for purposes of verification of
particular shipments of Mexico described in subparagraph
(A).
(2) Review of relevant information and request for additional
steps.--The Interagency Environment Committee--
(A) shall review relevant information provided by Mexico as
described in paragraph (1)(B)(ii) to determine if the Trade
Representative should request additional steps to verify
information provided or related to a particular shipment of
Mexico; and
(B) may request the Trade Representative to, within a
reasonable period of time, request Mexico to take such
additional steps with respect to the particular shipment.
(3) Consultation.--The Trade Representative, on behalf of the
Interagency Environment Committee, shall, on a quarterly basis,
consult with the appropriate congressional committees and the Trade
and Environment Policy Advisory Committee (or successor advisory
committee) established under section 135(c)(1) of the Trade Act of
1974 (19 U.S.C. 2155(c)(1)) regarding the public comments and
relevant information described in paragraph (1) and the actions
taken under paragraph (2).
(e) Application.--Subsections (c) and (d) shall apply with respect
to Mexico for such time as the USMCA is in force with respect to, and
the United States applies the USMCA to, Mexico.
SEC. 814. ENFORCEMENT ACTIONS.
The Interagency Environment Committee--
(1) may request the Trade Representative to, within a
reasonable period of time, request consultations under--
(A) article 24.29 of the USMCA (relating to environment
consultations) with respect to the USMCA country; or
(B) articles 31.4 and 31.6 of the USMCA (relating to
dispute settlement consultations) with respect to the USMCA
country; or
(2) may request the heads of other Federal agencies described
in section 815 to initiate monitoring or enforcement actions with
respect to the USMCA country under the provisions of law described
in section 815.
SEC. 815. OTHER MONITORING AND ENFORCEMENT ACTIONS.
(a) Marine Mammal Protection Act.--The Secretary of Commerce has
authority to take appropriate monitoring or enforcement actions under
the Marine Mammal Protection Act of 1972 (16 U.S.C. 1361 et seq.).
(b) Magnuson-Stevens Fishery Conservation and Management Act.--The
Secretary of Commerce has authority to take appropriate monitoring or
enforcement actions under the following provisions of law:
(1) The Magnuson-Stevens Fishery Conservation and Management
Act (16 U.S.C. 1801 et seq.).
(2) The Magnuson-Stevens Fishery Conservation and Management
Reauthorization Act of 2006 (16 U.S.C. 1891 et seq.).
(3) The High Seas Driftnet Fishing Moratorium Protection Act
(16 U.S.C. 1826d et seq.).
(4) The Shark Conservation Act of 2010 (16 U.S.C. 1826k note;
1857 note).
(5) The Shark Finning Prohibition Act (16 U.S.C. 1822 note).
(c) Fishermen's Protective Act of 1967.--The Secretary of Commerce
and Secretary of the Interior have authority to take appropriate
monitoring or enforcement actions under section 8 of the Fishermen's
Protective Act of 1967 (22 U.S.C. 1978).
(d) Agreement on Port State Measures To Prevent, Deter and
Eliminate Illegal, Unreported and Unregulated Fishing.--The Secretary
of Commerce has authority to take appropriate monitoring or enforcement
actions under the Port State Measures Agreement Act of 2015 (16 U.S.C.
7401 et seq.).
(e) Endangered Species Act.--The Secretary of Agriculture, the
Secretary of the Interior, the Secretary of Homeland Security, the
Secretary of Commerce, and the Secretary of the Treasury have authority
to take appropriate monitoring or enforcement actions under the
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).
(f) Lacey Act.--The Secretary of Agriculture, the Secretary of
Commerce, the Secretary of the Interior, the Secretary of Homeland
Security, and the Secretary of the Treasury have authority to take
appropriate monitoring or enforcement actions under the Lacey Act
Amendments of 1981 (16 U.S.C. 3371 et seq.).
(g) Migratory Bird Treaty Act.--The Secretary of the Interior has
authority to take appropriate monitoring or enforcement actions under
the Migratory Bird Treaty Act of 1918 (16 U.S.C. 703 et seq.).
(h) Eliminate, Neutralize, and Disrupt Wildlife Trafficking Act.--
The Secretary of State, the Secretary of the Interior, the Attorney
General, and Administrator of the United States Agency for
International Development have authority to take appropriate monitoring
or enforcement actions under the Eliminate, Neutralize, and Disrupt
Wildlife Trafficking Act of 2016 (16 U.S.C. 7601 et seq.).
(i) Wild Bird Conservation Act.--The Secretary of the Interior has
authority to take appropriate monitoring or enforcement actions under
the Wild Bird Conservation Act of 1992 (16 U.S.C. 4901 et seq.).
(j) Customs Seizure and Other Authorities.--The Secretary of
Homeland Security has authority to take appropriate monitoring or
enforcement actions under section 499 of the Tariff Act of 1930 (19
U.S.C. 1499) or section 596 of such Act (19 U.S.C. 1595a).
(k) Other Relevant Provisions of Law.--The Interagency Environment
Committee may request the heads of other Federal agencies to take
appropriate monitoring or enforcement actions under other relevant
provisions of law.
(l) Rule of Construction.--Nothing in this section may be construed
to supersede or otherwise limit in any manner the functions or
authority of the head of any Federal agency described in this section
under any other provision of law.
SEC. 816. REPORT TO CONGRESS.
(a) In General.--The Trade Representative, in consultation with the
head of any Federal agency described in this subtitle, shall submit to
the appropriate congressional committees a report on the implementation
of this subtitle, including--
(1) a description of efforts of the USMCA countries to
implement their environmental obligations; and
(2) a description of additional efforts to be taken with
respect to USMCA countries that are failing to implement their
environmental obligations.
(b) Timing of Report.--The report required by subsection (a) shall
be submitted--
(1) not later than 1 year after the date on which the USMCA
enters into force;
(2) annually for each of the next 4 years; and
(3) biennially thereafter.
(c) Additional Matters To Be Included in the Fifth Annual Report.--
The report required by subsection (a) that is submitted in the fifth
year after the USMCA enters into force shall also include the
following:
(1) The updated assessment required by section 812(d).
(2) A comprehensive determination regarding USMCA countries'
implementation of their environmental obligations.
(3) An explanation of how compliance with environmental
obligations will be taken into consideration during the ``joint
review'' conducted pursuant to article 34.7.2 of the USMCA on the
sixth anniversary of the entry into force of the USMCA.
SEC. 817. REGULATIONS.
The head of any Federal agency described in this subtitle, in
consultation with the Interagency Environment Committee, may prescribe
such regulations as are necessary to carry out the authorities of the
Federal agency as provided for under this subtitle.
Subtitle B--Other Matters
SEC. 821. BORDER WATER INFRASTRUCTURE IMPROVEMENT AUTHORITY.
(a) In General.--The Administrator of the Environmental Protection
Agency shall, in coordination with eligible public entities, carry out
the planning, design, construction, and operation and maintenance of
high priority treatment works in the covered area to treat wastewater
(including stormwater), nonpoint sources of pollution, and related
matters resulting from international transboundary water flows
originating in Mexico.
(b) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Administrator shall
submit to Congress a report on activities carried out pursuant to this
section.
(c) Definitions.--In this section:
(1) Covered area.--The term ``covered area'' means the portion
of the Tijuana River watershed that is in the United States.
(2) Eligible public entities.--The term ``eligible public
entities'' means--
(A) the United States Section of the International Boundary
and Water Commission;
(B) the Corps of Engineers;
(C) the North American Development Bank;
(D) the Department of State;
(E) any other appropriate Federal agency;
(F) the State of California; and
(G) any of the following entities with jurisdiction over
any part of the covered area:
(i) A local government.
(ii) An Indian Tribe.
(iii) A regional water board.
(iv) A public wastewater utility.
(3) Treatment works.--The term ``treatment works'' has the
meaning given that term in section 212 of the Federal Water
Pollution Control Act.
SEC. 822. DETAIL OF PERSONNEL TO OFFICE OF THE UNITED STATES TRADE
REPRESENTATIVE.
(a) In General.--Upon the request of the Trade Representative, the
Administrator of the Environmental Protection Agency, the Director of
the U.S. Fish and Wildlife Service, and the Administrator of the
National Oceanic Atmospheric Administration may detail, on a
reimbursable basis, one employee of each such respective agency to the
Office of the United States Trade Representative to be assigned to the
United States Embassy in Mexico to carry out the duties described in
subsection (b).
(b) Duties.--The duties described in this subsection are the
following:
(1) Assist the Interagency Environment Committee to carry out
monitoring and enforcement actions with respect to the
environmental obligations of Mexico.
(2) Prepare and submit to the Interagency Environment Committee
on a quarterly basis a report on efforts of Mexico to comply with
its environmental obligations.
Subtitle C--North American Development Bank
SEC. 831. GENERAL CAPITAL INCREASE.
Part 2 of subtitle D of title V of Public Law 103-182 (22 U.S.C.
290m et seq.) is amended by adding at the end the following:
``SEC. 547. FIRST CAPITAL INCREASE.
``(a) Subscription Authorized.--
``(1) In general.--The Secretary of the Treasury is authorized
to subscribe on behalf of the United States to, and make payment
for, 150,000 additional shares of the capital stock of the Bank.
``(2) Limitation.--Any subscription by the United States to the
capital stock of the Bank shall be effective only to such extent
and in such amounts as are provided in advance in appropriations
Acts.
``(b) Limitations on Authorization of Appropriations.--
``(1) In general.--In order to pay for the increase in the
United States subscription to the Bank under subsection (a), there
are authorized to be appropriated, without fiscal year limitation,
$1,500,000,000 for payment by the Secretary of the Treasury.
``(2) Allocation of funds.--Of the amount authorized to be
appropriated under paragraph (1)--
``(A) $225,000,000 shall be for paid in shares of the Bank;
and
``(B) $1,275,000,000 shall be for callable shares of the
Bank.''.
SEC. 832. POLICY GOALS.
(a) In General.--To the extent consistent with the mission and
scope of the North American Development Bank on the day before the date
of the enactment of this Act and pursuant to section 2 of article II of
the Charter, the Secretary of the Treasury should direct the
representatives of the United States to the Board of Directors of the
Bank to use the voice and vote of the United States to give preference
to the financing of projects related to environmental infrastructure
relating to water pollution, wastewater treatment, water conservation,
municipal solid waste, stormwater drainage, non-point pollution, and
related matters.
(b) Charter Defined.--In this section, the term ``Charter'' means
the Agreement Concerning the Establishment of a Border Environment
Cooperation Commission and a North American Development Bank, signed at
Washington and Mexico November 16 and 18, 1993, and entered into force
January 1, 1994 (TIAS 12516), between the United States and Mexico.
SEC. 833. EFFICIENCIES AND STREAMLINING.
The Secretary of the Treasury should direct the representatives of
the United States to the Board of Directors of the North American
Development Bank to use the voice and vote of the United States to seek
to require the Bank to develop and implement efficiency improvements to
streamline and accelerate the project certification and financing
process, including through initiatives such as single certifications
for revolving facilities, programmatic certification of similar groups
of small projects, expansion of internal authority to approve qualified
projects below certain monetary thresholds, and expedited certification
for public sector projects subject to lender bidding processes.
SEC. 834. PERFORMANCE MEASURES.
(a) In General.--The Secretary of the Treasury should direct the
representatives of the United States to the Board of Directors of the
North American Development Bank to use the voice and vote of the United
States to seek to require the Bank to develop performance measures
that--
(1) demonstrate how projects and financing approved by the Bank
are meeting the Bank's mission and providing added value to the
region near the international land border between the United States
and Mexico; and
(2) are reviewed and updated not less frequently than annually.
(b) Report to Congress.--The Secretary of the Treasury shall submit
to Congress, with the submission to Congress of the budget of the
President for a fiscal year under section 1105(a) of title 31, United
States Code, a report on progress in imposing the performance measures
described in subsection (a) of this section.
TITLE IX--USMCA SUPPLEMENTAL APPROPRIATIONS ACT, 2019
The following sums are hereby appropriated, out of any money in
the Treasury not otherwise appropriated, for fiscal year 2020 and for
other purposes, namely:
DEPARTMENT OF AGRICULTURE
Agricultural Programs
Animal and Plant Health Inspection Service
salaries and expenses
For an additional amount for ``Salaries and Expenses'', for
enforcement of the Lacey Act Amendments of 1981 (16 U.S.C. 3371 et
seq.) during fiscal years 2020 through 2023 related to trade activities
between the United States and Mexico, $4,000,000, to remain available
until September 30, 2023: Provided, That such amount is designated by
the Congress as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control
Act of 1985.
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
operations, research, and facilities
For an additional amount for ``Operations, Research, and
Facilities'', $16,000,000, to remain available until September 30,
2023: Provided, That $8,000,000 shall be available to engage in
cooperation with the Government of Mexico to combat illegal,
unreported, and unregulated fishing and enhance the implementation of
the Seafood Import Monitoring Program pursuant to 16 U.S.C. 1826 and
1829, during fiscal years 2020 through 2023: Provided further, That
$8,000,000 shall be available to carry out section 3 of the Marine
Debris Act (33 U.S.C. 1952) during fiscal years 2020 through 2023 in
the North American region: Provided further, That such amount is
designated by the Congress as being for an emergency requirement
pursuant to section 251(b)(2)(A)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985.
Office of the United States Trade Representative
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$50,000,000, to remain available until September 30, 2023: Provided,
That $30,000,000 shall be available solely to provide for additional
capacity of the Office during fiscal years 2020 through 2023 to monitor
compliance with labor obligations (as such term is defined in section
701 of this Act), including the necessary expenses of additional full-
time employees to participate in the Interagency Labor Committee for
Monitoring and Enforcement established pursuant to section 711 of this
Act: Provided further, That $20,000,000 shall be available to
reimburse the necessary expenses of personnel participating in the
Interagency Environment Committee for Monitoring and Enforcement
established pursuant to section 811 of this Act during fiscal years
2020 through 2023 to monitor compliance with environmental obligations
(as such term is defined in section 801 of this Act), including up to
one additional full-time employee detailed to the United States Embassy
in Mexico from each of the United States Fish and Wildlife Service, the
Environmental Protection Agency, and the National Oceanic and
Atmospheric Administration: Provided further, That, if the United
States Trade Representative determines that the additional amount
appropriated under this heading in this Act exceeds the amount
sufficient to provide for the reimbursement of personnel specified in
the previous proviso, such excess amounts may be used to reimburse the
necessary expenses of additional personnel participating in the
Interagency Environment Committee for Monitoring and Enforcement during
fiscal years 2020 through 2023 to monitor compliance with environmental
obligations (as such term is defined in section 801 of this Act):
Provided further, That such amount is designated by the Congress as
being for an emergency requirement pursuant to section 251(b)(2)(A)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985.
trade enforcement trust fund
For an additional amount for the ``Trade Enforcement Trust Fund'',
$40,000,000, to remain available until September 30, 2023, to carry out
the enforcement of environmental obligations under the USMCA, including
for state-to-state dispute settlement actions, during fiscal years 2020
through 2023: Provided, That, amounts appropriated in this paragraph
shall not count toward the limitation specified in section 611(b)(2) of
the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C.
4405): Provided further, That such amount is designated by the
Congress as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control
Act of 1985.
DEPARTMENT OF THE INTERIOR
United States Fish and Wildlife Service
resource management
For an additional amount for ``Resource Management'', to enforce
the Lacey Act Amendments of 1981 (16 U.S.C. 3371 et seq.) and sections
42 and 43 of title 18, United States Code, with respect to goods
imported or exported between the United States and Mexico, during
fiscal years 2020 through 2023, $4,000,000, to remain available until
September 30, 2023: Provided, That such amount is designated by the
Congress as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control
Act of 1985.
ENVIRONMENTAL PROTECTION AGENCY
Environmental Programs and Management
For an additional amount for ``Environmental Programs and
Management'' for necessary expenses for carrying out the Environmental
Protection Agency's efforts through the Commission for Environmental
Cooperation during fiscal years 2020 through 2023, to reduce pollution,
strengthen environmental governance, conserve biological diversity, and
sustainably manage natural resources, $4,000,000, to remain available
until expended: Provided, That such amount is designated by the
Congress as being for an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control
Act of 1985.
State and Tribal Assistance Grants
For an additional amount for ``State and Tribal Assistance Grants''
for architectural, engineering, planning, design, construction and
related activities in connection with the construction of high priority
wastewater facilities in the area of the United States-Mexico Border,
after consultation with the appropriate border commission,
$300,000,000, to remain available until expended: Provided, That such
amount is designated by the Congress as being for an emergency
requirement pursuant to section 251(b)(2)(A)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985.
DEPARTMENT OF LABOR
Departmental Management
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$210,000,000, for the Bureau of International Labor Affairs to
administer or operate international labor activities, bilateral and
multilateral technical assistance, and microfinance programs, by or
through contracts, grants, subgrants and other arrangements; of which
$180,000,000, to remain available until December 31, 2023, shall be
used to support reforms of the labor justice system in Mexico,
including grants to support worker-focused capacity building, efforts
to reduce workplace discrimination in Mexico, efforts to reduce child
labor and forced labor in Mexico, efforts to reduce human trafficking,
efforts to reduce child exploitation, and other efforts related to
implementation of the USMCA; and of which $30,000,000, to remain
available until September 30, 2027, shall be available to provide for
additional capacity of the Bureau of International Labor Affairs during
fiscal years 2020 through 2027 to monitor compliance with labor
obligations (as such term is defined in section 701 of this Act),
including the necessary expenses of additional full-time employees of
the Bureau to participate in the Interagency Labor Committee for
Monitoring and Enforcement established pursuant to section 711 of this
Act: Provided, That the Secretary of Labor may detail or assign up to
5 additional full-time employees of the Bureau to the United States
Embassy or consulates in Mexico to (1) assist in monitoring and
enforcement actions with respect to the labor obligations of Mexico,
and (2) prepare a report, to be submitted on a quarterly basis to the
Interagency Labor Committee for Monitoring and Enforcement through
September 30, 2027, on the efforts of Mexico to comply with labor
obligations (as such term is defined in section 701 of this Act):
Provided further, That such employees, while detailed or assigned,
shall continue to receive compensation, allowances, and benefits from
funds made available to the Bureau for purposes related to the
activities of the detail or assignment, in accordance with authorities
related to their employment status and agency policies: Provided
further, That such amount is designated by the Congress as being for an
emergency requirement pursuant to section 251(b)(2)(A)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985.
MULTILATERAL ASSISTANCE
International Financial Institutions
contribution to the north american development bank
For payment to the North American Development Bank by the Secretary
of the Treasury for the United States share of the paid-in portion of
the increase in capital stock, $215,000,000, to remain available until
expended: Provided, That the authorities and conditions applicable to
accounts in title V of the Department of State, Foreign Operations, and
Related Programs Appropriations Act, 2019 (division F of Public Law
116-6) shall apply to the amounts provided under this heading:
Provided further, That such amount is designated by the Congress as
being for an emergency requirement pursuant to section 251(b)(2)(A)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985.
GENERAL PROVISIONS--THIS TITLE
Sec. 901. Each amount appropriated or made available by this title
is in addition to any amounts otherwise appropriated for any of the
fiscal years involved.
Sec. 902. No part of any appropriation contained in this title
shall remain available for obligation beyond the current fiscal year
unless expressly so provided herein.
Sec. 903. Unless otherwise provided for by this title, the
additional amounts appropriated by this title to appropriations
accounts shall be available under the authorities and conditions
applicable to such appropriations accounts for fiscal year 2020.
Sec. 904. Each amount designated in this title by the Congress as
being for an emergency requirement pursuant to section 251(b)(2)(A)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985 shall
be available (or rescinded or transferred, if applicable) only if the
President subsequently so designates all such amounts and transmits
such designations to the Congress.
budgetary effects
Sec. 905. (a) Statutory PAYGO Scorecards.--The budgetary effects
of this title shall not be entered on either PAYGO scorecard maintained
pursuant to section 4(d) of the Statutory Pay As-You-Go Act of 2010.
(b) Senate PAYGO Scorecards.--The budgetary effects of this title
shall not be entered on any PAYGO scorecard maintained for purposes of
section 4106 of H. Con. Res. 71 (115th Congress).
(c) Classification of Budgetary Effects.--Notwithstanding Rule 3 of
the Budget Scorekeeping Guidelines set forth in the joint explanatory
statement of the committee of conference accompanying Conference Report
105-217 and section 250(c)(7) and (c)(8) of the Balanced Budget and
Emergency Deficit Control Act of 1985, the budgetary effects of this
title shall be estimated for purposes of section 251 of such Act.
This title may be cited as the ``USMCA Supplemental Appropriations
Act, 2019''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.