[Congressional Record Volume 140, Number 6 (Tuesday, February 1, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         NORTH AMERICAN FREE TRADE AGREEMENT IMPLEMENTATION ACT

  (The text of the bill H.R. 3450, North American Free Trade Agreement 
Implementation Act, as called for on page H9875 of the Congressional 
Record of Wednesday, November 17, 1993, is as follows:)

                               H.R. 3450

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``North 
     American Free Trade Agreement Implementation Act''.
       (b) Table of Contents.--

Sec. 1. Short title and table of contents.
Sec. 2. Definitions.

  TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE NORTH 
                     AMERICAN FREE TRADE AGREEMENT

Sec. 101. Approval and entry into force of the North American Free 
              Trade Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Consultation and layover requirements for, and effective date 
              of, proclaimed actions.
Sec. 104. Implementing actions in anticipation of entry into force and 
              initial regulations.
Sec. 105. United States Section of the NAFTA Secretariat.
Sec. 106. Appointments to chapter 20 panel proceedings.
Sec. 107. Termination or suspension of United States-Canada Free-Trade 
              Agreement.
Sec. 108. Congressional intent regarding future accessions.
Sec. 109. Effective dates; effect of termination of NAFTA status.

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications. 
Sec. 202. Rules of origin.
Sec. 203. Drawback.
Sec. 204. Customs user fees.
Sec. 205. Enforcement.
Sec. 206. Reliquidation of entries for NAFTA-origin goods.
Sec. 207. Country of origin marking of NAFTA goods.
Sec. 208. Protests against adverse origin determinations.
Sec. 209. Exchange of information.
Sec. 210. Prohibition on drawback for television picture tubes.
Sec. 211. Monitoring of television and picture tube imports.
Sec. 212. Title VI amendments.
Sec. 213. Effective dates.

      TITLE III--APPLICATION OF AGREEMENT TO SECTORS AND SERVICES

                         Subtitle A--Safeguards

       Part 1--Relief From Imports Benefiting From the Agreement

Sec. 301. Definitions.
Sec. 302. Commencing of action for relief.
Sec. 303. International Trade Commission action on petition.
Sec. 304. Provision of relief.
Sec. 305. Termination of relief authority.
Sec. 306. Compensation authority.
Sec. 307. Submission of petitions.
Sec. 308. Special tariff provisions for Canadian fresh fruits and 
              vegetables.
Sec. 309. Price-based snapback for frozen concentrated orange juice.

             Part 2--Relief From Imports From All Countries

Sec. 311. NAFTA article impact in import relief cases under the Trade 
              Act of 1974.
Sec. 312. Presidential action regarding NAFTA imports.

                       Part 3--General Provisions

Sec. 315. Provisional relief.
Sec. 316. Monitoring.
Sec. 317. Procedures concerning the conduct of International Trade 
              Commission investigations.
Sec. 318. Effective date.

                        Subtitle B--Agriculture

Sec. 321. Agriculture.

                   Subtitle C--Intellectual Property

Sec. 331. Treatment of inventive activity.
Sec. 332. Rental rights in sound recordings.
Sec. 333. Nonregistrability of misleading geographic indications.
Sec. 334. Motion pictures in the public domain.
Sec. 335. Effective dates.

            Subtitle D--Temporary Entry of Business Persons

Sec. 341. Temporary entry.
Sec. 342. Effective date.

                         Subtitle E--Standards

                     Part 1--Standards and Measures

Sec. 351. Standards and sanitary and phytosanitary measures.
Sec. 352. Transportation.

                     Part 2--Agricultural Standards

Sec. 361. Agricultural technical and conforming amendments.

               Subtitle F--Corporate Average Fuel Economy

Sec. 371. Corporate average fuel economy.

                   Subtitle G--Government Procurement

Sec. 381. Government procurement.

  TITLE IV--DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING DUTY 
                                 CASES

 Subtitle A--Organizational, Administrative, and Procedural Provisions 
      Regarding the Implementation of Chapter 19 of the Agreement

Sec. 401. References in subtitle.
Sec. 402. Organizational and administrative provisions.
Sec. 403. Testimony and production of papers in extraordinary 
              challenges.
Sec. 404. Requests for review of determinations by competent 
              investigating authorities of NAFTA countries.
Sec. 405. Rules of procedure for panels and committees.
Sec. 406. Subsidy negotiations.
Sec. 407. Identification of industries facing subsidized imports.
Sec. 408. Treatment of amendments to antidumping and countervailing 
              duty law.

            Subtitle B--Conforming Amendments and Provisions

Sec. 411. Judicial review in antidumping duty and countervailing duty 
              cases.
Sec. 412. Conforming amendments to other provisions of the Tariff Act 
              of 1930.
Sec. 413. Consequential amendment to Free-Trade Agreement Act of 1988.
Sec. 414. Conforming amendments to title 28, United States Code.
Sec. 415. Effect of termination of NAFTA country status.
Sec. 416. Effective date.

 TITLE V--NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER PROVISIONS

      Subtitle A--NAFTA Transitional Adjustment Assistance Program

Sec. 501. Short title.
Sec. 502. Establishment of NAFTA transitional adjustment assistance 
              program.
Sec. 503. Conforming amendments.
Sec. 504. Authorization of appropriations.
Sec. 505. Termination of transition program.
Sec. 506. Effective date.
Sec. 507. Treatment of self-employment assistance programs.

   Subtitle B--Provisions Relating to Performance Under the Agreement

Sec. 511. Discriminatory taxes.
Sec. 512. Review of the operation and effects of the agreement.
Sec. 513. Actions affecting United States cultural industries.
Sec. 514. Report on impact of NAFTA on motor vehicle exports to Mexico.
Sec. 515. Center for the study of Western Hemispheric Trade.
Sec. 516. Effective date.

                          Subtitle C--Funding

                       Part 1--Customs User Fees

Sec. 521. Fees for certain customs services.

                Part 2--Internal Revenue Code Amendments

Sec. 522. Authority to disclose certain tax information to the United 
              States customs service.
Sec. 523. Use of electronic fund transfer system for collection of 
              certain taxes.

      Subtitle D--Implementation of NAFTA Supplemental Agreements

          Part 1--Agreements Relating to Labor and Environment

Sec. 531. Agreement on labor cooperation.
Sec. 532. Agreement on environmental cooperation.
Sec. 533. Agreement on Border Environment Cooperation Commission.

    Part 2--North American Development Bank and Related Provisions.

Sec. 541. North American Development Bank.
Sec. 542. Status, immunities, and privileges.
Sec. 543. Community adjustment and investment program.
Sec. 544. Definition.

                    TITLE VI--CUSTOMS MODERNIZATION

Sec. 601. Reference.

            Subtitle A--Improvements in Customs Enforcement

Sec. 611. Penalties for violations of arrival, reporting, entry, and 
              clearance requirements.
Sec. 612. Failure to declare.
Sec. 613. Customs testing laboratories; detention of merchandise.
Sec. 614. Recordkeeping.
Sec. 615. Examination of books and witnesses.
Sec. 616. Judicial enforcement.
Sec. 617. Review of protests.
Sec. 618. Repeal of provision relating to reliquidation on account of 
              fraud.
Sec. 619. Penalties relating to manifests.
Sec. 620. Unlawful unlading or transshipment.
Sec. 621. Penalties for fraud, gross negligence, and negligence; prior 
              disclosure.
Sec. 622. Penalties for false drawback claims.
Sec. 623. Interpretive rulings and decisions; public information.
Sec. 624. Seizure authority.

            Subtitle B--National Customs Automation Program

Sec. 631. National Customs Automation Program.
Sec. 632. Drawback and refunds.
Sec. 633. Effective date of rates of duty.
Sec. 634. Definitions.
Sec. 635. Manifests.
Sec. 636. Invoice contents.
Sec. 637. Entry of merchandise.
Sec. 638. Appraisement and other procedures.
Sec. 639. Voluntary reliquidations.
Sec. 640. Appraisement regulations.
Sec. 641. Limitation on liquidation.
Sec. 642. Payment of duties and fees.
Sec. 643. Abandonment and damage.
Sec. 644. Customs officer's immunity.
Sec. 645. Protests.
Sec. 646. Refunds and errors.
Sec. 647. Bonds and other security.
Sec. 648. Customhouse brokers.
Sec. 649. Conforming amendments.

     Subtitle C--Miscellaneous Amendments to the Tariff Act of 1930

Sec. 651. Administrative exemptions.
Sec. 652. Report of arrival.
Sec. 653. Entry of vessels.
Sec. 654. Unlawful return of foreign vessel papers.
Sec. 655. Vessels not required to enter.
Sec. 656. Unlading.
Sec. 657. Declarations.
Sec. 658. General orders.
Sec. 659. Unclaimed merchandise.
Sec. 660. Destruction of merchandise.
Sec. 661. Proceeds of sale.
Sec. 662. Entry under regulations.
Sec. 663. American trademarks.
Sec. 664. Simplified recordkeeping for merchandise transported by 
              pipeline.
Sec. 665. Entry for warehouse.
Sec. 666. Cartage.
Sec. 667. Seizure.
Sec. 668. Limitation on actions.
Sec. 669. Collection of fees on behalf of other agencies.
Sec. 670. Authority to settle claims.
Sec. 671. Use of private collection agencies.

 Subtitle D--Miscellaneous Provisions and Consequential and Conforming 
                        Amendments to Other Laws

Sec. 681. Amendments to the Harmonized Tariff Schedule.
Sec. 682. Customs personnel airport work shift regulation.
Sec. 683. Use of harbor maintenance trust fund amounts for 
              administrative expenses.
Sec. 684. Amendments to title 28, United States Code.
Sec. 685. Treasury forfeiture fund.
Sec. 686. Amendments to the Revised Statutes of the United States.
Sec. 687. Amendments to title 18, United States Code.
Sec. 688. Amendment to the Act to Prevent Pollution from Ships.
Sec. 689. Miscellaneous technical amendments.
Sec. 690. Repeal of obsolete provisions of law.
Sec. 691. Reports to Congress.
Sec. 692. Effective date.

     SEC. 2. DEFINITIONS.

       For purposes of this Act:
       (1) Agreement.--The term ``Agreement'' means the North 
     American Free Trade Agreement approved by the Congress under 
     section 101(a).
       (2) HTS.--The term ``HTS'' means the Harmonized Tariff 
     Schedule of the United States.
       (3) Mexico.--Any reference to Mexico shall be considered to 
     be a reference to the United Mexican States.
       (4) NAFTA country.--Except as provided in section 202, the 
     term ``NAFTA country'' means--
       (A) Canada for such time as the Agreement is in force with 
     respect to, and the United States applies the Agreement to, 
     Canada; and
       (B) Mexico for such time as the Agreement is in force with 
     respect to, and the United States applies the Agreement to, 
     Mexico.
       (5) International trade commission.--The term 
     ``International Trade Commission'' means the United States 
     International Trade Commission.
       (6) Trade representative.--The term ``Trade 
     Representative'' means the United States Trade 
     Representative.
  TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE NORTH 
                     AMERICAN FREE TRADE AGREEMENT

     SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE NORTH AMERICAN 
                   FREE TRADE AGREEMENT.

       (a) Approval of Agreement and Statement of Administrative 
     Action.--Pursuant to section 1103 of the Omnibus Trade and 
     Competitiveness Act of 1988 (19 U.S.C. 2903) and section 151 
     of the Trade Act of 1974 (19 U.S.C. 2191), the Congress 
     approves--
       (1) the North American Free Trade Agreement entered into on 
     December 17, 1992, with the Governments of Canada and Mexico 
     and submitted to the Congress on November 4, 1993; and
       (2) the statement of administrative action proposed to 
     implement the Agreement that was submitted to the Congress on 
     November 4, 1993.
       (b) Conditions for Entry Into Force of the Agreement.--The 
     President is authorized to exchange notes with the Government 
     of Canada or Mexico providing for the entry into force, on or 
     after January 1, 1994, of the Agreement for the United States 
     with respect to such country at such time as--
       (1) the President--
       (A) determines that such country has implemented the 
     statutory changes necessary to bring that country into 
     compliance with its obligations under the Agreement and has 
     made provision to implement the Uniform Regulations provided 
     for under article 511 of the Agreement regarding the 
     interpretation, application, and administration of the rules 
     of origin, and
       (B) transmits a report to the House of Representatives and 
     the Senate setting forth the determination under subparagraph 
     (A) and including, in the case of Mexico, a description of 
     the specific measures taken by that country to--
       (i) bring its laws into conformity with the requirements of 
     the Schedule of Mexico in Annex 1904.15 of the Agreement, and
       (ii) otherwise ensure the effective implementation of the 
     binational panel review process under chapter 19 of the 
     Agreement regarding final antidumping and countervailing duty 
     determinations; and
       (2) the Government of such country exchanges notes with the 
     United States providing for the entry into force of the North 
     American Agreement on Environmental Cooperation and the North 
     American Agreement on Labor Cooperation for that country and 
     the United States.

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

       (a) Relationship of Agreement to United States Law.--
       (1) United states law to prevail in conflict.--No provision 
     of the Agreement, nor the application of any such provision 
     to any person or circumstance, which is inconsistent with any 
     law of the United States shall have effect.
       (2) Construction.--Nothing in this Act shall be construed--
       (A) to amend or modify any law of the United States, 
     including any law regarding--
       (i) the protection of human, animal, or plant life or 
     health,
       (ii) the protection of the environment, or
       (iii) motor carrier or worker safety; or
       (B) to limit any authority conferred under any law of the 
     United States, including section 301 of the Trade Act of 
     1974;
     unless specifically provided for in this Act.
       (b) Relationship of Agreement to State Law.--
       (1) Federal-state consultation.--
       (A) In general.--Upon the enactment of this Act, the 
     President shall, through the intergovernmental policy 
     advisory committees on trade established under section 
     306(c)(2)(A) of the Trade and Tariff Act of 1984, consult 
     with the States for the purpose of achieving conformity of 
     State laws and practices with the Agreement.
       (B) Federal-state consultation process.--The Trade 
     Representative shall establish within the Office of the 
     United States Trade Representative a Federal-State 
     consultation process for addressing issues relating to the 
     Agreement that directly relate to, or will potentially have a 
     direct impact on, the States. The Federal-State consultation 
     process shall include procedures under which--
       (i) the Trade Representative will assist the States in 
     identifying those State laws that may not conform with the 
     Agreement but may be maintained under the Agreement by reason 
     of being in effect before the Agreement entered into force;
       (ii) the States will be informed on a continuing basis of 
     matters under the Agreement that directly relate to, or will 
     potentially have a direct impact on, the States;
       (iii) the States will be provided opportunity to submit, on 
     a continuing basis, to the Trade Representative information 
     and advice with respect to matters referred to in clause 
     (ii);
       (iv) the Trade Representative will take into account the 
     information and advice received from the States under clause 
     (iii) when formulating United States positions regarding 
     matters referred to in clause (ii); and
       (v) the States will be involved (including involvement 
     through the inclusion of appropriate representatives of the 
     States) to the greatest extent practicable at each stage of 
     the development of United States positions regarding matters 
     referred to in clause (ii) that will be addressed by 
     committees, subcommittees, or working groups established 
     under the Agreement or through dispute settlement processes 
     provided for under the Agreement.
     The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the Federal-State consultation process established 
     by this paragraph.
       (2) Legal challenge.--No State law, or the application 
     thereof, may be declared invalid as to any person or 
     circumstance on the ground that the provision or application 
     is inconsistent with the Agreement, except in an action 
     brought by the United States for the purpose of declaring 
     such law or application invalid.
       (3) Definition of state law.--For purposes of this 
     subsection, the term ``State law'' includes--
       (A) any law of a political subdivision of a State; and
       (B) any State law regulating or taxing the business of 
     insurance.
       (c) Effect of Agreement With Respect to Private Remedies.--
     No person other than the United States--
       (1) shall have any cause of action or defense under--
       (A) the Agreement or by virtue of Congressional approval 
     thereof, or
       (B) the North American Agreement on Environmental 
     Cooperation or the North American Agreement on Labor 
     Cooperation; or
       (2) may challenge, in any action brought under any 
     provision of law, any action or inaction by any department, 
     agency, or other instrumentality of the United States, any 
     State, or any political subdivision of a State on the ground 
     that such action or inaction is inconsistent with the 
     Agreement, the North American Agreement on Environmental 
     Cooperation, or the North American Agreement on Labor 
     Cooperation.

     SEC. 103. CONSULTATION AND LAYOVER REQUIREMENTS FOR, AND 
                   EFFECTIVE DATE OF, PROCLAIMED ACTIONS.

       (a) Consultation and Layover Requirements.--If a provision 
     of this Act provides that the implementation of an action by 
     the President by proclamation is subject to the consultation 
     and layover requirements of this section, such action may be 
     proclaimed only if--
       (1) the President has obtained advice regarding the 
     proposed action from--
       (A) the appropriate advisory committees established under 
     section 135 of the Trade Act of 1974, and
       (B) the International Trade Commission;
       (2) the President has submitted a report to the Committee 
     on Ways and Means of the House of Representatives and the 
     Committee on Finance of the Senate that sets forth--
       (A) the action proposed to be proclaimed and the reasons 
     therefor, and
       (B) the advice obtained under paragraph (1);
       (3) a period of 60 calendar days, beginning with the first 
     day on which the President has met the requirements of 
     paragraphs (1) and (2) with respect to such action, has 
     expired; and
       (4) the President has consulted with such Committees 
     regarding the proposed action during the period referred to 
     in paragraph (3).
       (b) 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 
     requirements under subsection (a) may not take effect before 
     the 15th day after the date on which the text of the 
     proclamation is published in the Federal Register.

     SEC. 104. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 
                   FORCE AND INITIAL REGULATIONS.

       (a) Implementing Actions.--After the date of the enactment 
     of this Act--
       (1) the President may proclaim such actions; and
       (2) other appropriate officers of the United States 
     Government may issue such regulations;

     as may be necessary to ensure that any provision of this Act, 
     or amendment made by this Act, that takes effect on the date 
     the Agreement enters into force is appropriately implemented 
     on such date, but no such proclamation or regulation may have 
     an effective date earlier than the date of entry into force. 
     The 15-day restriction in section 103(b) on the taking effect 
     of proclaimed actions is waived to the extent that the 
     application of such restriction would prevent the taking 
     effect on the date the Agreement enters into force of any 
     action proclaimed under this section.
       (b) Initial Regulations.--Initial regulations necessary or 
     appropriate to carry out the actions proposed in the 
     statement of administrative action submitted under section 
     101(a)(2) to implement the Agreement shall, to the maximum 
     extent feasible, be issued within 1 year after the date of 
     entry into force of the Agreement; except that interim or 
     initial regulations to implement those Uniform Regulations 
     regarding rules of origin provided for under article 511 of 
     the Agreement shall be issued no later than the date of entry 
     into force of the Agreement. In the case of any implementing 
     action that takes effect on a date after the date of entry 
     into force of the Agreement, initial regulations to carry out 
     that action shall, to the maximum extent feasible, be issued 
     within 1 year after such effective date.

     SEC. 105. UNITED STATES SECTION OF THE NAFTA SECRETARIAT.

       (a) Establishment of the United States Section.--The 
     President is authorized to establish within any department or 
     agency of the United States Government a United States 
     Section of the Secretariat established under chapter 20 of 
     the Agreement. The United States Section, subject to the 
     oversight of the interagency group established under section 
     402, shall carry out its functions within the Secretariat to 
     facilitate the operation of the Agreement, including the 
     operation of chapters 19 and 20 of the Agreement and the work 
     of the panels, extraordinary challenge committees, special 
     committees, and scientific review boards convened under those 
     chapters. The United States Section may not be considered to 
     be an agency for purposes of section 552 of title 5, United 
     States Code.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated for each fiscal year after fiscal year 
     1993 to the department or agency within which the United 
     States Section is established the lesser of--
       (1) such sums as may be necessary; or
       (2) $2,000,000;
     for the establishment and operations of the United States 
     Section and for the payment of the United States share of the 
     expenses of binational panels and extraordinary challenge 
     committees convened under chapter 19, and of the expenses 
     incurred in dispute settlement proceedings under chapter 20, 
     of the Agreement.
       (c) Reimbursement of Certain Expenses.--If, in accordance 
     with Annex 2002.2 of the Agreement, 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 by the Canadian Section or the 
     Mexican Section in connection with settlement proceedings 
     under chapter 19 or 20 of the Agreement, the United States 
     Section may retain and use such funds to carry out the 
     functions described in subsection (a).

     SEC. 106. APPOINTMENTS TO CHAPTER 20 PANEL PROCEEDINGS.

       (a) Consultation.--The Trade Representative shall consult 
     with the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate 
     regarding the selection and appointment of candidates for the 
     rosters described in article 2009 of the Agreement.
       (b) Selection of Individuals With Environmental 
     Expertise.--The United States shall, to the maximum extent 
     practicable, encourage the selection of individuals who have 
     expertise and experience in environmental issues for service 
     in panel proceedings under chapter 20 of the Agreement to 
     hear any challenge to a United States or State environmental 
     law.

     SEC. 107. TERMINATION OR SUSPENSION OF UNITED STATES-CANADA 
                   FREE-TRADE AGREEMENT.

       Section 501(c) of the United States-Canada Free-Trade 
     Implementation Act of 1988 (19 U.S.C. 2112 note) is amended 
     to read as follows:
       ``(c) Termination or Suspension of Agreement.--
       ``(1) Termination of agreement.--On the date the Agreement 
     ceases to be in force, the provisions of this Act (other than 
     this paragraph and section 410(b)), and the amendments made 
     by this Act, shall cease to have effect.
       ``(2) Effect of agreement suspension.--An agreement by the 
     United States and Canada to suspend the operation of the 
     Agreement shall not be deemed to cause the Agreement to cease 
     to be in force within the meaning of paragraph (1).
       ``(3) Suspension resulting from nafta.--On the date the 
     United States and Canada agree to suspend the operation of 
     the Agreement by reason of the entry into force between them 
     of the North American Free Trade Agreement, the following 
     provisions of this Act are suspended and shall remain 
     suspended until such time as the suspension of the Agreement 
     may be terminated:
       ``(A) Sections 204(a) and (b) and 205(a).
       ``(B) Sections 302 and 304(f).
       ``(C) Sections 404, 409, and 410(b).''.

     SEC. 108. CONGRESSIONAL INTENT REGARDING FUTURE ACCESSIONS.

       (a) In General.--Section 101(a) may not be construed as 
     conferring Congressional approval of the entry into force of 
     the Agreement for the United States with respect to countries 
     other than Canada and Mexico.
       (b) Future Free Trade Area Negotiations.--
       (1) Findings.--The Congress makes the following findings:
       (A) Efforts by the United States to obtain greater market 
     opening through multilateral negotiations have not produced 
     agreements that fully satisfy the trade negotiating 
     objectives of the United States.
       (B) United States trade policy should provide for 
     additional mechanisms with which to pursue greater market 
     access for United States exports of goods and services and 
     opportunities for export-related investment by United States 
     persons.
       (C) Among the additional mechanisms should be a system of 
     bilateral and multilateral trade agreements that provide 
     greater market access for United States exports and 
     opportunities for export-related investment by United States 
     persons.
       (D) The system of trade agreements can and should be 
     structured to be consistent with, and complementary to, 
     existing international obligations of the United States and 
     ongoing multilateral efforts to open markets.
       (2) Report on significant market opening.--No later than 
     May 1, 1994, and May 1, 1997, the Trade Representative shall 
     submit to the President, and to the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives (hereafter in this section referred to as 
     the ``appropriate Congressional committees''), a report which 
     lists those foreign countries--
       (A) that--
       (i) currently provide fair and equitable market access for 
     United States exports of goods and services and opportunities 
     for export-related investment by United States persons, 
     beyond what is required by existing multilateral trade 
     agreements or obligations; or
       (ii) have made significant progress in opening their 
     markets to United States exports of goods and services and 
     export-related investment by United States persons; and
       (B) the further opening of whose markets has the greatest 
     potential to increase United States exports of goods and 
     services and export-related investment by United States 
     persons, either directly or through the establishment of a 
     beneficial precedent.
       (3) Presidential determination.--The President, on the 
     basis of the report submitted by the Trade Representative 
     under paragraph (2), shall determine with which foreign 
     country or countries, if any, the United States should seek 
     to negotiate a free trade area agreement or agreements.
       (4) Recommendations on future free trade area 
     negotiations.--No later than July 1, 1994, and July 1, 1997, 
     the President shall submit to the appropriate Congressional 
     committees a written report that contains--
       (A) recommendations for free trade area negotiations with 
     each foreign country selected under paragraph (3);
       (B) with respect to each country selected, the specific 
     negotiating objectives that are necessary to meet the 
     objectives of the United States under this section; and
       (C) legislative proposals to ensure adequate consultation 
     with the Congress and the private sector during the 
     negotiations, advance Congressional approval of the 
     negotiations recommended by the President, and Congressional 
     approval of any trade agreement entered into by the President 
     as a result of the negotiations.
       (5) General negotiating objectives.--The general 
     negotiating objectives of the United States under this 
     section are to obtain--
       (A) preferential treatment for United States goods;
       (B) national treatment and, where appropriate, equivalent 
     competitive opportunity for United States services and 
     foreign direct investment by United States persons;
       (C) the elimination of barriers to trade in goods and 
     services by United States persons through standards, testing, 
     labeling, and certification requirements;
       (D) nondiscriminatory government procurement policies and 
     practices with respect to United States goods and services;
       (E) the elimination of other barriers to market access for 
     United States goods and services, and the elimination of 
     barriers to foreign direct investment by United States 
     persons;
       (F) the elimination of acts, policies, and practices which 
     deny fair and equitable market opportunities, including 
     foreign government toleration of anticompetitive business 
     practices by private firms or among private firms that have 
     the effect of restricting, on a basis that is inconsistent 
     with commercial considerations, purchasing by such firms of 
     United States goods and services;
       (G) adequate and effective protection of intellectual 
     property rights of United States persons, and fair and 
     equitable market access for United States persons that rely 
     upon intellectual property protection;
       (H) the elimination of foreign export and domestic 
     subsidies that distort international trade in United States 
     goods and services or cause material injury to United States 
     industries;
       (I) the elimination of all export taxes;
       (J) the elimination of acts, policies, and practices which 
     constitute export targeting; and
       (K) monitoring and effective dispute settlement mechanisms 
     to facilitate compliance with the matters described in 
     subparagraphs (A) through (J).

     SEC. 109. EFFECTIVE DATES; EFFECT OF TERMINATION OF NAFTA 
                   STATUS.

       (a) Effective Dates.--
       (1) In general.--This title (other than the amendment made 
     by section 107) takes effect on the date of the enactment of 
     this Act.
       (2) Section 107 amendment.--The amendment made by section 
     107 takes effect on the date the Agreement enters into force 
     between the United States and Canada.
       (b) Termination of NAFTA Status.--During any period in 
     which a country ceases to be a NAFTA country, sections 101 
     through 106 shall cease to have effect with respect to such 
     country.
                      TITLE II--CUSTOMS PROVISIONS

     SEC. 201. TARIFF MODIFICATIONS.

       (a) Tariff Modifications Provided for in the Agreement.--
       (1) Proclamation authority.--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 302, 305, 307, 308, and 703 and 
     Annexes 302.2, 307.1, 308.1, 308.2, 300-B, 703.2, and 703.3 
     of the Agreement.
       (2) Effect on mexican gsp status.--Notwithstanding section 
     502(a)(2) of the Trade Act of 1974 (19 U.S.C. 2462(a)(2)), 
     the President shall terminate the designation of Mexico as a 
     beneficiary developing country for purposes of title V of the 
     Trade Act of 1974 on the date of entry into force of the 
     Agreement between the United States and Mexico.
       (b) Other Tariff Modifications.--
       (1) In general.--Subject to paragraph (2) and the 
     consultation and layover requirements of section 103(a), the 
     President may proclaim--
       (A) such modifications or continuation of any duty,
       (B) such modifications as the United States may agree to 
     with Mexico or Canada regarding the staging of any duty 
     treatment set forth in Annex 302.2 of the Agreement,
       (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 Canada or Mexico 
     provided for by the Agreement.
       (2) Special rule for articles with tariff phaseout periods 
     of more than 10 years.--The President may not consider a 
     request to accelerate the staging of duty reductions for an 
     article for which the United States tariff phaseout period is 
     more than 10 years if a request for acceleration with respect 
     to such article has been denied in the preceding 3 calendar 
     years.
       (c) Conversion to Ad Valorem Rates for Certain Textiles.--
     For purposes of subsections (a) and (b), with respect to an 
     article covered by Annex 300-B of the Agreement imported from 
     Mexico for which the base rate in the Schedule of the United 
     States in Annex 300-B is a specific or compound rate of duty, 
     the President may substitute for the base rate an ad valorem 
     rate that the President determines to be equivalent to the 
     base rate.

     SEC. 202. RULES OF ORIGIN.

       (a) Originating Goods.--
       (1) In general.--For purposes of implementing the tariff 
     treatment and quantitative restrictions provided for under 
     the Agreement, except as otherwise provided in this section, 
     a good originates in the territory of a NAFTA country if--
       (A) the good is wholly obtained or produced entirely in the 
     territory of one or more of the NAFTA countries;
       (B)(i) each nonoriginating material used in the production 
     of the good--
       (I) undergoes an applicable change in tariff classification 
     set out in Annex 401 of the Agreement as a result of 
     production occurring entirely in the territory of one or more 
     of the NAFTA countries; or
       (II) where no change in tariff classification is required, 
     the good otherwise satisfies the applicable requirements of 
     such Annex; and
       (ii) the good satisfies all other applicable requirements 
     of this section;
       (C) the good is produced entirely in the territory of one 
     or more of the NAFTA countries exclusively from originating 
     materials; or
       (D) except for a good provided for in chapters 61 through 
     63 of the HTS, the good is produced entirely in the territory 
     of one or more of the NAFTA countries, but one or more of the 
     nonoriginating materials, that are provided for as parts 
     under the HTS and are used in the production of the good, 
     does not undergo a change in tariff classification because--
       (i) the good was imported into the territory of a NAFTA 
     country in an unassembled or a disassembled form but was 
     classified as an assembled good pursuant to General Rule of 
     Interpretation 2(a) of the HTS; or
       (ii)(I) the heading for the good provides for and 
     specifically describes both the good itself and its parts and 
     is not further subdivided into subheadings; or
       (II) the subheading for the good provides for and 
     specifically describes both the good itself and its parts.
       (2) Special rules.--
       (A) Foreign-trade zones.--Subparagraph (B) of paragraph (1) 
     shall not apply to a good produced in a foreign-trade zone or 
     subzone (established pursuant to the Act of June 18, 1934, 
     commonly known as the Foreign Trade Zones Act) that is 
     entered for consumption in the customs territory of the 
     United States.
       (B) Regional value-content requirement.--For purposes of 
     subparagraph (D) of paragraph (1), a good shall be treated as 
     originating in a NAFTA country if the regional value-content 
     of the good, determined in accordance with subsection (b), is 
     not less than 60 percent where the transaction value method 
     is used, or not less than 50 percent where the net cost 
     method is used, and the good satisfies all other applicable 
     requirements of this section.
       (b) Regional Value-Content.--
       (1) In general.--Except as provided in paragraph (5), the 
     regional value-content of a good shall be calculated, at the 
     choice of the 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 exporter or producer may calculate the 
     regional value-content of a good on the basis of the 
     following transaction value method:

                                                                        
                                  tv-vnm                                
     rvc            =      -------------------                   100    
                                    tv                                  
                                                                        

       (B) Definitions.--For purposes of subparagraph (A):
       (i) The term ``RVC'' means the regional value-content, 
     expressed as a percentage.
       (ii) The term ``TV'' means the transaction value of the 
     good adjusted to a F.O.B. basis.
       (iii) 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 exporter or producer may calculate the 
     regional value-content of a good on the basis of the 
     following net cost method:

                                                                        
                                  nc-vnm                                
     rvc            =      -------------------                   100    
                                    nc                                  
                                                                        

       (B) Definitions.--For purposes of subparagraph (A):
       (i) The term ``RVC'' means the regional value-content, 
     expressed as a percentage.
       (ii) The term ``NC'' means the net cost of the good.
       (iii) The term ``VNM'' means the value of nonoriginating 
     materials used by the producer in the production of the good.
       (4) Value of nonoriginating materials used in originating 
     materials.--Except as provided in subsection (c)(1), and for 
     a motor vehicle identified in subsection (c)(2) or a 
     component identified in Annex 403.2 of the Agreement, 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 to 
     produce originating materials that are subsequently used in 
     the production of the good.
       (5) Net cost method must be used in certain cases.--An 
     exporter or producer shall calculate the regional value-
     content of a good solely on the basis of the net cost method 
     described in paragraph (3), if--
       (A) there is no transaction value for the good;
       (B) the transaction value of the good is unacceptable under 
     Article 1 of the Customs Valuation Code;
       (C) the good is sold by the producer to a related person 
     and the volume, by units of quantity, of sales of identical 
     or similar goods to related persons during the six-month 
     period immediately preceding the month in which the good is 
     sold exceeds 85 percent of the producer's total sales of such 
     goods during that period;
       (D) the good is--
       (i) a motor vehicle provided for in heading 8701 or 8702, 
     subheadings 8703.21 through 8703.90, or heading 8704, 8705, 
     or 8706;
       (ii) identified in Annex 403.1 or 403.2 of the Agreement 
     and is for use in a motor vehicle provided for in heading 
     8701 or 8702, subheadings 8703.21 through 8703.90, or heading 
     8704, 8705, or 8706;
       (iii) provided for in subheadings 6401.10 through 6406.10; 
     or
       (iv) a word processing machine provided for in subheading 
     8469.10.00;
       (E) the exporter or producer chooses to accumulate the 
     regional value-content of the good in accordance with 
     subsection (d); or
       (F) the good is designated as an intermediate material 
     under paragraph (10) and is subject to a regional value-
     content requirement.
       (6) Net cost method allowed for adjustments.--If an 
     exporter or producer of a good calculates the regional value-
     content of the good on the basis of the transaction value 
     method and a NAFTA country subsequently notifies the exporter 
     or producer, during the course of a verification conducted in 
     accordance with chapter 5 of the Agreement, 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 Code, 
     the exporter or producer may calculate the regional value-
     content of the good on the basis of the net cost method.
       (7) Review of adjustment.--Nothing in paragraph (6) shall 
     be construed to prevent any review or appeal available in 
     accordance with article 510 of the Agreement with respect to 
     an adjustment to or a rejection of--
       (A) the transaction value of a good; or
       (B) the value of any material used in the production of a 
     good.
       (8) Calculating net cost.--The producer may, consistent 
     with regulations implementing this section, calculate the net 
     cost of a 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 service costs, 
     royalties, shipping and packing costs, and nonallowable 
     interest costs that are included in the total cost of all 
     such goods, and 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 these costs does not include any sales 
     promotion, marketing and after-sales service costs, 
     royalties, shipping and packing costs, or nonallowable 
     interest costs.
       (9) Value of material used in production.--Except as 
     provided in paragraph (11), the value of a material used in 
     the production of a good--
       (A) shall--
       (i) be the transaction value of the material determined in 
     accordance with Article 1 of the Customs Valuation Code; or
       (ii) in the event that there is no transaction value or the 
     transaction value of the material is unacceptable under 
     Article 1 of the Customs Valuation Code, be determined in 
     accordance with Articles 2 through 7 of the Customs Valuation 
     Code; and
       (B) if not included under clause (i) or (ii) of 
     subparagraph (A), shall include--
       (i) freight, insurance, packing, and all other costs 
     incurred in transporting the material to the location of the 
     producer;
       (ii) duties, taxes, and customs brokerage fees paid on the 
     material in the territory of one or more of the NAFTA 
     countries; and
       (iii) the cost of waste and spoilage resulting from the use 
     of the material in the production of the good, less the value 
     of renewable scrap or by-product.
       (10) Intermediate material.--Except for goods described in 
     subsection (c)(1), any self-produced material, other than a 
     component identified in Annex 403.2 of the Agreement, that is 
     used in the production of a good may be designated by the 
     producer of the good as an intermediate material for the 
     purpose of calculating the regional value-content of the good 
     under paragraph (2) or (3); provided that if the intermediate 
     material is subject to a regional value-content requirement, 
     no other self-produced material that is subject to a regional 
     value-content requirement and is used in the production of 
     the intermediate material may be designated by the producer 
     as an intermediate material.
       (11) Value of intermediate material.--The value of an 
     intermediate material shall be--
       (A) the total cost incurred with respect to all goods 
     produced by the producer of the good that can be reasonably 
     allocated to the intermediate material; or
       (B) the aggregate of each cost that is part of the total 
     cost incurred with respect to the intermediate material that 
     can be reasonably allocated to that intermediate material.
       (12) Indirect material.--The value of an indirect material 
     shall be based on the Generally Accepted Accounting 
     Principles applicable in the territory of the NAFTA country 
     in which the good is produced.
       (c) Automotive Goods.--
       (1) Passenger vehicles and light trucks, and their 
     automotive parts.--For purposes of calculating the regional 
     value-content under the net cost method for--
       (A) a good that is a motor vehicle for the transport of 15 
     or fewer persons provided for in subheading 8702.10.00 or 
     8702.90.00, or a motor vehicle provided for in subheadings 
     8703.21 through 8703.90, or subheading 8704.21 or 8704.31, or
       (B) a good provided for in the tariff provisions listed in 
     Annex 403.1 of the Agreement, that is subject to a regional 
     value-content requirement and is for use as original 
     equipment in the production of a motor vehicle for the 
     transport of 15 or fewer persons provided for in subheading 
     8702.10.00 or 8702.90.00, or a motor vehicle provided for in 
     subheadings 8703.21 through 8703.90, or subheading 8704.21 or 
     8704.31,

     the value of nonoriginating materials used by the producer in 
     the production of the good shall be the sum of the values of 
     all nonoriginating materials, determined in accordance with 
     subsection (b)(9) at the time the nonoriginating materials 
     are received by the first person in the territory of a NAFTA 
     country who takes title to them, that are imported from 
     outside the territories of the NAFTA countries under the 
     tariff provisions listed in Annex 403.1 of the Agreement and 
     are used in the production of the good or that are used in 
     the production of any material used in the production of the 
     good.
       (2) Other vehicles and their automotive parts.--For 
     purposes of calculating the regional value-content under the 
     net cost method for a good that is a motor vehicle provided 
     for in heading 8701, subheading 8704.10, 8704.22, 8704.23, 
     8704.32, or 8704.90, or heading 8705 or 8706, a motor vehicle 
     for the transport of 16 or more persons provided for in 
     subheading 8702.10.00 or 8702.90.00, or a component 
     identified in Annex 403.2 of the Agreement for use as 
     original equipment in the production of the motor vehicle, 
     the value of nonoriginating materials used by the producer in 
     the production of the good shall be the sum of--
       (A) for each material used by the producer listed in Annex 
     403.2 of the Agreement, whether or not produced by the 
     producer, at the choice of the producer and determined in 
     accordance with subsection (b), either--
       (i) the value of such material that is nonoriginating, or
       (ii) the value of nonoriginating materials used in the 
     production of such material; and
       (B) the value of any other nonoriginating material used by 
     the producer that is not listed in Annex 403.2 of the 
     Agreement determined in accordance with subsection (b).
       (3) Averaging permitted.--
       (A) In general.--For purposes of calculating the regional 
     value-content of a motor vehicle described in paragraph (1) 
     or (2), the producer may average its calculation over its 
     fiscal year, using any of the categories described in 
     subparagraph (B), on the basis of either all motor vehicles 
     in the category or on the basis of only the motor vehicles in 
     the category that are exported to the territory of one or 
     more of the other NAFTA countries.
       (B) Category described.--A category is described in this 
     subparagraph if it is--
       (i) the same model line of motor vehicles in the same class 
     of vehicles produced in the same plant in the territory of a 
     NAFTA country;
       (ii) the same class of motor vehicles produced in the same 
     plant in the territory of a NAFTA country;
       (iii) the same model line of motor vehicles produced in the 
     territory of a NAFTA country; or
       (iv) if applicable, the basis set out in Annex 403.3 of the 
     Agreement.
       (4) Annex 403.1 and annex 403.2.--For purposes of 
     calculating the regional value-content for any or all goods 
     provided for in a tariff provision listed in Annex 403.1 of 
     the Agreement, or a component or material identified in Annex 
     403.2 of the Agreement, produced in the same plant, the 
     producer of the good may--
       (A) average its calculation--
       (i) over the fiscal year of the motor vehicle producer to 
     whom the good is sold;
       (ii) over any quarter or month; or
       (iii) over its fiscal year, if the good is sold as an 
     aftermarket part;
       (B) calculate the average referred to in subparagraph (A) 
     separately for any or all goods sold to one or more motor 
     vehicle producers; or
       (C) with respect to any calculation under this paragraph, 
     make a separate calculation for goods that are exported to 
     the territory of one or more NAFTA countries.
       (5) Phase-in of regional value-content requirement.--
     Notwithstanding Annex 401 of the Agreement, and except as 
     provided in paragraph (6), the regional value-content 
     requirement shall be--
       (A) for a producer's fiscal year beginning on the day 
     closest to January 1, 1998, and thereafter, 56 percent 
     calculated under the net cost method, and for a producer's 
     fiscal year beginning on the day closest to January 1, 2002, 
     and thereafter, 62.5 percent calculated under the net cost 
     method, for--
       (i) a good that is a motor vehicle for the transport of 15 
     or fewer persons provided for in subheading 8702.10.00 or 
     8702.90.00, or a motor vehicle provided for in subheadings 
     8703.21 through 8703.90, or subheading 8704.21 or 8704.31; 
     and
       (ii) a good provided for in heading 8407 or 8408, or 
     subheading 8708.40, that is for use in a motor vehicle 
     identified in clause (i); and
       (B) for a producer's fiscal year beginning on the day 
     closest to January 1, 1998, and thereafter, 55 percent 
     calculated under the net cost method, and for a producer's 
     fiscal year beginning on the day closest to January 1, 2002, 
     and thereafter, 60 percent calculated under the net cost 
     method, for--
       (i) a good that is a motor vehicle provided for in heading 
     8701, subheading 8704.10, 8704.22, 8704.23, 8704.32, or 
     8704.90, or heading 8705 or 8706, or a motor vehicle for the 
     transport of 16 or more persons provided for in subheading 
     8702.10.00 or 8702.90.00;
       (ii) a good provided for in heading 8407 or 8408, or 
     subheading 8708.40 that is for use in a motor vehicle 
     identified in clause (i); and
       (iii) except for a good identified in subparagraph (A)(ii) 
     or a good provided for in subheadings 8482.10 through 
     8482.80, or subheading 8483.20 or 8483.30, a good identified 
     in Annex 403.1 of the Agreement that is subject to a regional 
     value-content requirement and is for use in a motor vehicle 
     identified in subparagraph (A)(i) or (B)(i).
       (6) New and refitted plants.--The regional value-content 
     requirement for a motor vehicle identified in paragraph (1) 
     or (2) shall be--
       (A) 50 percent for 5 years after the date on which the 
     first motor vehicle prototype is produced in a plant by a 
     motor vehicle assembler, if--
       (i) it is a motor vehicle of a class, or marque, or, except 
     for a motor vehicle identified in paragraph (2), size 
     category and underbody, not previously produced by the motor 
     vehicle assembler in the territory of any of the NAFTA 
     countries;
       (ii) the plant consists of a new building in which the 
     motor vehicle is assembled; and
       (iii) the plant contains substantially all new machinery 
     that is used in the assembly of the motor vehicle; or
       (B) 50 percent for 2 years after the date on which the 
     first motor vehicle prototype is produced at a plant 
     following a refit, if it is a motor vehicle of a class, or 
     marque, or, except for a motor vehicle identified in 
     paragraph (2), size category and underbody, different from 
     that assembled by the motor vehicle assembler in the plant 
     before the refit.
       (7) Election for certain vehicles from canada.--In the case 
     of goods provided for in subheadings 8703.21 through 8703.90, 
     or subheading 8704.21 or 8704.31, exported from Canada 
     directly to the United States, and entered on or after 
     January 1, 1989, and before the date of entry into force of 
     the Agreement between the United States and Canada, an 
     importer may elect to use the rules of origin set out in this 
     section in lieu of the rules of origin contained in section 
     202 of the United States-Canada Free-Trade Agreement 
     Implementation Act of 1988 (19 U.S.C. 2112 note) and may 
     elect to use the method for calculating the value of 
     nonoriginating materials established in article 403(2) of the 
     Agreement in lieu of the method established in article 403(1) 
     of the Agreement for purposes of determining eligibility for 
     preferential duty treatment under the United States-Canada 
     Free-Trade Agreement. Any election under this paragraph shall 
     be made in writing to the Customs Service not later than the 
     date that is 180 days after the date of entry into force of 
     the Agreement between the United States and Canada. Any such 
     election may be made only if the liquidation of such entry 
     has not become final. For purposes of averaging the 
     calculation of regional value-content for the goods covered 
     by such entry, where the producer's 1989-1990 fiscal year 
     began after January 1, 1989, the producer may include the 
     period between January 1, 1989, and the beginning of its 
     first fiscal year after January 1, 1989, as part of fiscal 
     year 1989-1990.
       (d) Accumulation.--
       (1) Determination of originating good.--For purposes of 
     determining whether a good is an originating good, the 
     production of the good in the territory of one or more of the 
     NAFTA countries by one or more producers shall, at the choice 
     of the exporter or producer of the good, be considered to 
     have been performed in the territory of any of the NAFTA 
     countries by that exporter or producer, if--
       (A) all nonoriginating materials used in the production of 
     the good undergo an applicable tariff classification change 
     set out in Annex 401 of the Agreement;
       (B) the good satisfies any applicable regional value-
     content requirement; and
       (C) the good satisfies all other applicable requirements of 
     this section.

     The requirements of subparagraphs (A) and (B) must be 
     satisfied entirely in the territory of one or more of the 
     NAFTA countries.
       (2) Treatment as single producer.--For purposes of 
     subsection (b)(10), the production of a producer that chooses 
     to accumulate its production with that of other producers 
     under paragraph (1) shall be treated as the production of a 
     single producer.
       (e) De Minimis Amounts of Nonoriginating Materials.--
       (1) In general.--Except as provided in paragraphs (3), (4), 
     (5), and (6), a good shall be considered to be an originating 
     good if--
       (A) the value of all nonoriginating materials used in the 
     production of the good that do not undergo an applicable 
     change in tariff classification (set out in Annex 401 of the 
     Agreement) is not more than 7 percent of the transaction 
     value of the good, adjusted to a F.O.B. basis, or
       (B) where the transaction value of the good is unacceptable 
     under Article 1 of the Customs Valuation Code, the value of 
     all such nonoriginating materials is not more than 7 percent 
     of the total cost of the good,

     provided that the good satisfies all other applicable 
     requirements of this section and, if the good is subject to a 
     regional value-content requirement, the value of such 
     nonoriginating materials is taken into account in calculating 
     the regional value-content of the good.
       (2) Goods not subject to regional value-content 
     requirement.--A good that is otherwise subject to a regional 
     value-content requirement shall not be required to satisfy 
     such requirement if--
       (A)(i) the value of all nonoriginating materials used in 
     the production of the good is not more than 7 percent of the 
     transaction value of the good, adjusted to a F.O.B. basis; or
       (ii) where the transaction value of the good is 
     unacceptable under Article 1 of the Customs Valuation Code, 
     the value of all nonoriginating materials is not more than 7 
     percent of the total cost of the good; and
       (B) the good satisfies all other applicable requirements of 
     this section.
       (3) Dairy products, etc.--Paragraph (1) does not apply to--
       (A) a nonoriginating material provided for in chapter 4 of 
     the HTS or a dairy preparation containing over 10 percent by 
     weight of milk solids provided for in subheading 1901.90.30, 
     1901.90.40, or 1901.90.80 that is used in the production of a 
     good provided for in chapter 4 of the HTS;
       (B) a nonoriginating material provided for in chapter 4 of 
     the HTS or a dairy preparation containing over 10 percent by 
     weight of milk solids provided for in subheading 1901.90.30, 
     1901.90.40, or 1901.90.80 that is used in the production of--
       (i) preparations for infants containing over 10 percent by 
     weight of milk solids provided for in subheading 1901.10.00;
       (ii) mixes and doughs, containing over 25 percent by weight 
     of butterfat, not put up for retail sale, provided for in 
     subheading 1901.20.00;
       (iii) a dairy preparation containing over 10 percent by 
     weight of milk solids provided for in subheading 1901.90.30, 
     1901.90.40, or 1901.90.80;
       (iv) a good provided for in heading 2105 or subheading 
     2106.90.05, or preparations containing over 10 percent by 
     weight of milk solids provided for in subheading 2106.90.15, 
     2106.90.40, 2106.90.50, or 2106.90.65;
       (v) a good provided for in subheading 2202.90.10 or 
     2202.90.20; or
       (vi) animal feeds containing over 10 percent by weight of 
     milk solids provided for in subheading 2309.90.30;
       (C) a nonoriginating material provided for in heading 0805 
     or subheadings 2009.11 through 2009.30 that is used in the 
     production of--
       (i) a good provided for in subheadings 2009.11 through 
     2009.30, or subheading 2106.90.16, or concentrated fruit or 
     vegetable juice of any single fruit or vegetable, fortified 
     with minerals or vitamins, provided for in subheading 
     2106.90.19; or
       (ii) a good provided for in subheading 2202.90.30 or 
     2202.90.35, or fruit or vegetable juice of any single fruit 
     or vegetable, fortified with minerals or vitamins, provided 
     for in subheading 2202.90.36;
       (D) a nonoriginating material provided for in chapter 9 of 
     the HTS that is used in the production of instant coffee, not 
     flavored, provided for in subheading 2101.10.20;
       (E) a nonoriginating material provided for in chapter 15 of 
     the HTS that is used in the production of a good provided for 
     in headings 1501 through 1508, or heading 1512, 1514, or 
     1515;
       (F) a nonoriginating material provided for in heading 1701 
     that is used in the production of a good provided for in 
     headings 1701 through 1703;
       (G) a nonoriginating material provided for in chapter 17 of 
     the HTS or heading 1805 that is used in the production of a 
     good provided for in subheading 1806.10;
       (H) a nonoriginating material provided for in headings 2203 
     through 2208 that is used in the production of a good 
     provided for in headings 2207 through 2208;
       (I) a nonoriginating material used in the production of--
       (i) a good provided for in subheading 7321.11.30;
       (ii) a good provided for in subheading 8415.10, subheadings 
     8415.81 through 8415.83, subheadings 8418.10 through 8418.21, 
     subheadings 8418.29 through 8418.40, subheading 8421.12 or 
     8422.11, subheadings 8450.11 through 8450.20, or subheadings 
     8451.21 through 8451.29;
       (iii) trash compactors provided for in subheading 
     8479.89.60; or
       (iv) a good provided for in subheading 8516.60.40; and
       (J) a printed circuit assembly that is a nonoriginating 
     material used in the production of a good where the 
     applicable change in tariff classification for the good, as 
     set out in Annex 401 of the Agreement, places restrictions on 
     the use of such nonoriginating material.
       (4) Certain fruit juices.--Paragraph (1) does not apply to 
     a nonoriginating single juice ingredient provided for in 
     heading 2009 that is used in the production of--
       (A) a good provided for in subheading 2009.90, or 
     concentrated mixtures of fruit or vegetable juice, fortified 
     with minerals or vitamins, provided for in subheading 
     2106.90.19; or
       (B) mixtures of fruit or vegetable juices, fortified with 
     minerals or vitamins, provided for in subheading 2202.90.39.
       (5) Goods provided for in chapters 1 through 27 of the 
     hts.--Paragraph (1) does not apply to a nonoriginating 
     material used in the production of a good provided for in 
     chapters 1 through 27 of the HTS unless the nonoriginating 
     material is provided for in a different subheading than the 
     good for which origin is being determined under this section.
       (6) Goods provided for in chapters 50 through 63 of the 
     hts.--A good provided for in chapters 50 through 63 of the 
     HTS, that does not originate because certain fibers or yarns 
     used in the production of the component of the good that 
     determines the tariff classification of the good do not 
     undergo an applicable change in tariff classification set out 
     in Annex 401 of the Agreement, shall be considered to be a 
     good that originates if the total weight of all such fibers 
     or yarns in that component is not more than 7 percent of the 
     total weight of that component.
       (f) Fungible Goods and Materials.--For purposes of 
     determining whether a good is an originating good--
       (1) if originating and nonoriginating fungible materials 
     are used in the production of the good, the determination of 
     whether the materials are originating need not be made 
     through the identification of any specific fungible material, 
     but may be determined on the basis of any of the inventory 
     management methods set out in regulations implementing this 
     section; and
       (2) if originating and nonoriginating fungible goods are 
     commingled and exported in the same form, the determination 
     may be made on the basis of any of the inventory management 
     methods set out in regulations implementing this section.
       (g) Accessories, Spare Parts, or Tools.--
       (1) In general.--Except as provided in paragraph (2), 
     accessories, spare parts, or tools delivered with the good 
     that form part of the good's standard accessories, spare 
     parts, or tools shall--
       (A) be considered as originating goods if the good is an 
     originating good, and
       (B) be disregarded in determining whether all the 
     nonoriginating materials used in the production of the good 
     undergo an applicable change in tariff classification set out 
     in Annex 401 of the Agreement.
       (2) Conditions.--Paragraph (1) shall apply only if--
       (A) the accessories, spare parts, or tools are not invoiced 
     separately from the good;
       (B) the quantities and value of the accessories, spare 
     parts, or tools are customary for the good; and
       (C) in any case in which the good is subject to a regional 
     value-content requirement, the value of the accessories, 
     spare parts, or tools are taken into account as originating 
     or nonoriginating materials, as the case may be, in 
     calculating the regional value-content of the good.
       (h) Indirect Materials.--An indirect material shall be 
     considered to be an originating material without regard to 
     where it is produced.
       (i) Packaging Materials and Containers for Retail Sale.--
     Packaging materials and containers in which a good is 
     packaged for retail sale, if classified with the good, shall 
     be disregarded in determining whether all the nonoriginating 
     materials used in the production of the good undergo an 
     applicable change in tariff classification set out in Annex 
     401 of the Agreement. If the good is subject to a regional 
     value-content requirement, the value of such packaging 
     materials and containers shall be taken into account as 
     originating or nonoriginating materials, as the case may be, 
     in calculating the regional value-content of the good.
       (j) Packing Materials and Containers for Shipment.--Packing 
     materials and containers in which a good is packed for 
     shipment shall be disregarded--
       (1) in determining whether the nonoriginating materials 
     used in the production of the good undergo an applicable 
     change in tariff classification set out in Annex 401 of the 
     Agreement; and
       (2) in determining whether the good satisfies a regional 
     value-content requirement.
       (k) Transshipment.--A good shall not be considered to be an 
     originating good by reason of having undergone production 
     that satisfies the requirements of subsection (a) if, 
     subsequent to that production, the good undergoes further 
     production or any other operation outside the territories of 
     the NAFTA countries, other than unloading, reloading, or any 
     other operation necessary to preserve it in good condition or 
     to transport the good to the territory of a NAFTA country.
       (l) 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 evidence, 
     that the object was to circumvent this section.
       (m) Interpretation and Application.--For purposes of this 
     section:
       (1) The basis for any tariff classification is the HTS.
       (2) Except as otherwise expressly provided, whenever in 
     this section there is a reference to a heading or subheading 
     such reference shall be a reference to a heading or 
     subheading of the HTS.
       (3) In applying subsection (a)(4), the determination of 
     whether a heading or subheading under the HTS provides for 
     and specifically describes both a good and its parts shall be 
     made on the basis of the nomenclature of the heading or 
     subheading, the rules of interpretation, or notes of the HTS.
       (4) In applying the Customs Valuation Code--
       (A) the principles of the Customs Valuation Code shall 
     apply to domestic transactions, with such modifications as 
     may be required by the circumstances, as would apply to 
     international transactions;
       (B) the provisions of this section shall take precedence 
     over the Customs Valuation Code to the extent of any 
     difference; and
       (C) the definitions in subsection (o) shall take precedence 
     over the definitions in the Customs Valuation Code to the 
     extent of any difference.
       (5) All costs referred to in this section shall be recorded 
     and maintained in accordance with the Generally Accepted 
     Accounting Principles applicable in the territory of the 
     NAFTA country in which the good is produced.
       (n) Origin of Automatic Data Processing Goods.--
     Notwithstanding any other provision of this section, when the 
     NAFTA countries apply the most-favored-nation rate of duty 
     described in paragraph 1 of section A of Annex 308.1 of the 
     Agreement to a good provided for under the tariff provisions 
     set out in Table 308.1.1 of such Annex, the good shall, upon 
     importation from a NAFTA country, be deemed to originate in 
     the territory of a NAFTA country for purposes of this 
     section.
       (o) Special Rule for Certain Agricultural Products.--
     Notwithstanding any other provision of this section, for 
     purposes of applying a rate of duty to a good provided for 
     in--
       (1) heading 1202 that is exported from the territory of 
     Mexico, if the good is not wholly obtained in the territory 
     of Mexico,
       (2) subheading 2008.11 that is exported from the territory 
     of Mexico, if any material provided for in heading 1202 used 
     in the production of that good is not wholly obtained in the 
     territory of Mexico, or
       (3) subheading 1806.10.42 or 2106.90.12 that is exported 
     from the territory of Mexico, if any material provided for in 
     subheading 1701.99 used in the production of that good is not 
     a qualifying good,

     such good shall be treated as a nonoriginating good and, for 
     purposes of this subsection, the terms ``qualifying good'' 
     and ``wholly obtained in the territory of'' have the meaning 
     given such terms in paragraph 26 of section A of Annex 703.2 
     of the Agreement.
       (p) Definitions.--For purposes of this section--
       (1) Class of motor vehicles.--The term ``class of motor 
     vehicles'' means any one of the following categories of motor 
     vehicles:
       (A) Motor vehicles provided for in subheading 8701.20, 
     subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or 
     heading 8705 or 8706, or motor vehicles designed for the 
     transport of 16 or more persons provided for in subheading 
     8702.10.00 or 8702.90.00.
       (B) Motor vehicles provided for in subheading 8701.10, or 
     subheadings 8701.30 through 8701.90.
       (C) Motor vehicles for the transport of 15 or fewer persons 
     provided for in subheading 8702.10.00 or 8702.90.00, or motor 
     vehicles provided for in subheading 8704.21 or 8704.31.
       (D) Motor vehicles provided for in subheadings 8703.21 
     through 8703.90.
       (2) Customs valuation code.--The term ``Customs Valuation 
     Code'' means the Agreement on Implementation of Article VII 
     of the General Agreement on Tariffs and Trade, including its 
     interpretative notes.
       (3) F.O.B.--The term ``F.O.B.'' means free on board, 
     regardless of the mode of transportation, at the point of 
     direct shipment by the seller to the buyer.
       (4) Fungible goods and fungible materials.--The terms 
     ``fungible goods'' and ``fungible materials'' mean goods or 
     materials that are interchangeable for commercial purposes 
     and whose properties are essentially identical.
       (5) Generally accepted accounting principles.--The term 
     ``Generally Accepted Accounting Principles'' means the 
     recognized consensus or substantial authoritative support in 
     the territory of a NAFTA country with respect to the 
     recording of revenues, expenses, costs, assets and 
     liabilities, disclosure of information, and preparation of 
     financial statements. These standards may be broad guidelines 
     of general application as well as detailed standards, 
     practices, or procedures.
       (6) Goods wholly obtained or produced entirely in the 
     territory of one or more of the nafta countries.--The term 
     ``goods wholly obtained or produced entirely in the territory 
     of one or more of the NAFTA countries'' means--
       (A) mineral goods extracted in the territory of one or more 
     of the NAFTA countries;
       (B) vegetable goods harvested in the territory of one or 
     more of the NAFTA countries;
       (C) live animals born and raised in the territory of one or 
     more of the NAFTA countries;
       (D) goods obtained from hunting, trapping, or fishing in 
     the territory of one or more of the NAFTA countries;
       (E) goods (such as fish, shellfish, and other marine life) 
     taken from the sea by vessels registered or recorded with a 
     NAFTA country and flying its flag;
       (F) goods produced on board factory ships from the goods 
     referred to in subparagraph (E), if such factory ships are 
     registered or recorded with that NAFTA country and fly its 
     flag;
       (G) goods taken by a NAFTA country or a person of a NAFTA 
     country from the seabed or beneath the seabed outside 
     territorial waters, provided that a NAFTA country has rights 
     to exploit such seabed;
       (H) goods taken from outer space, if the goods are obtained 
     by a NAFTA country or a person of a NAFTA country and not 
     processed in a country other than a NAFTA country;
       (I) waste and scrap derived from--
       (i) production in the territory of one or more of the NAFTA 
     countries; or
       (ii) used goods collected in the territory of one or more 
     of the NAFTA countries, if such goods are fit only for the 
     recovery of raw materials; and
       (J) goods produced in the territory of one or more of the 
     NAFTA countries exclusively from goods referred to in 
     subparagraphs (A) through (I), or from their derivatives, at 
     any stage of production.
       (7) Identical or similar goods.--The term ``identical or 
     similar goods'' means ``identical goods'' and ``similar 
     goods'', respectively, as defined in the Customs Valuation 
     Code.
       (8) Indirect material.--
       (A) The term ``indirect material'' means a good--
       (i) used in the production, testing, or inspection of a 
     good but not physically incorporated into the good, or
       (ii) used in the maintenance of buildings or the operation 
     of equipment associated with the production of a good,
     in the territory of one or more of the NAFTA countries.
       (B) When used for a purpose described in subparagraph (A), 
     the following materials are among those considered to be 
     indirect materials:
       (i) Fuel and energy.
       (ii) Tools, dies, and molds.
       (iii) Spare parts and materials used in the maintenance of 
     equipment and buildings.
       (iv) Lubricants, greases, compounding materials, and other 
     materials used in production or used to operate equipment and 
     buildings.
       (v) Gloves, glasses, footwear, clothing, safety equipment, 
     and supplies.
       (vi) Equipment, devices, and supplies used for testing or 
     inspecting the goods.
       (vii) Catalysts and solvents.
       (viii) Any other goods that are not incorporated into the 
     good, if the use of such goods in the production of the good 
     can reasonably be demonstrated to be a part of that 
     production.
       (9) Intermediate material.--The term ``intermediate 
     material'' means a material that is self-produced, used in 
     the production of a good, and designated pursuant to 
     subsection (b)(10).
       (10) Marque.--The term ``marque'' means the trade name used 
     by a separate marketing division of a motor vehicle 
     assembler.
       (11) Material.--The term ``material'' means a good that is 
     used in the production of another good and includes a part or 
     an ingredient.
       (12) Model line.--The term ``model line'' means a group of 
     motor vehicles having the same platform or model name.
       (13) Motor vehicle assembler.--The term ``motor vehicle 
     assembler'' means a producer of motor vehicles and any 
     related persons or joint ventures in which the producer 
     participates.
       (14) NAFTA country.--The term ``NAFTA country'' means the 
     United States, Canada or Mexico for such time as the 
     Agreement is in force with respect to Canada or Mexico, and 
     the United States applies the Agreement to Canada or Mexico.
       (15) New building.--The term ``new building'' means a new 
     construction, including at least the pouring or construction 
     of new foundation and floor, the erection of a new structure 
     and roof, and installation of new plumbing, electrical, and 
     other utilities to house a complete vehicle assembly process.
       (16) Net cost.--The term ``net cost'' means total cost less 
     sales promotion, marketing and after-sales service costs, 
     royalties, shipping and packing costs, and nonallowable 
     interest costs that are included in the total cost.
       (17) 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 out in subsection (b)(8).
       (18) Nonallowable interest costs.--The term ``nonallowable 
     interest costs'' means interest costs incurred by a producer 
     as a result of an interest rate that exceeds the applicable 
     federal government interest rate for comparable maturities by 
     more than 700 basis points, determined pursuant to 
     regulations implementing this section.
       (19) Nonoriginating good; nonoriginating material.--The 
     term ``nonoriginating good'' or ``nonoriginating material'' 
     means a good or material that does not qualify as an 
     originating good or material under the rules of origin set 
     out in this section.
       (20) Originating.--The term ``originating'' means 
     qualifying under the rules of origin set out in this section.
       (21) Producer.--The term ``producer'' means a person who 
     grows, mines, harvests, fishes, traps, hunts, manufactures, 
     processes, or assembles a good.
       (22) Production.--The term ``production'' means growing, 
     mining, harvesting, fishing, trapping, hunting, 
     manufacturing, processing, or assembling a good.
       (23) Reasonably allocate.--The term ``reasonably allocate'' 
     means to apportion in a manner appropriate to the 
     circumstances.
       (24) Refit.--The term ``refit'' means a plant closure, for 
     purposes of plant conversion or retooling, that lasts at 
     least 3 months.
       (25) Related persons.--The term ``related persons'' means 
     persons specified in any of the following subparagraphs:
       (A) Persons who are officers or directors of one another's 
     businesses.
       (B) Persons who are legally recognized partners in 
     business.
       (C) Persons who are employer and employee.
       (D) Persons one of whom owns, controls, or holds 25 percent 
     or more of the outstanding voting stock or shares of the 
     other.
       (E) Persons if 25 percent or more of the outstanding voting 
     stock or shares of each of them is directly or indirectly 
     owned, controlled, or held by a third person.
       (F) Persons one of whom is directly or indirectly 
     controlled by the other.
       (G) Persons who are directly or indirectly controlled by a 
     third person.
       (H) Persons who are members of the same family.

     For purposes of this paragraph, the term ``members of the 
     same family'' means natural or adoptive children, brothers, 
     sisters, parents, grandparents, or spouses.
       (26) Royalties.--The term ``royalties'' means payments of 
     any kind, including payments under technical assistance or 
     similar agreements, made as consideration for the use or 
     right to use any copyright, literary, artistic, or scientific 
     work, patent, trademark, design, model, plan, secret formula, 
     or process. It does not include payments under technical 
     assistance or similar agreements that can be related to 
     specific services such as--
       (A) personnel training, without regard to where performed; 
     and
       (B) if performed in the territory of one or more of the 
     NAFTA countries, engineering, tooling, die-setting, software 
     design and similar computer services, or other services.
       (27) 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, sales aid information), establishment 
     and protection of logos and trademarks, sponsorships, 
     wholesale and retail restocking 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), traveling 
     and living expenses, and membership and professional fees for 
     sales promotion, marketing, and after-sales service 
     personnel.
       (D) Recruiting and training of sales promotion, marketing, 
     and after-sales service personnel, and after-sales training 
     of customers' employees, where such costs are identified 
     separately for sales promotion, marketing, and after-sales 
     service of goods on the financial statements or cost accounts 
     of the producer.
       (E) Product liability insurance.
       (F) Office supplies for sales promotion, marketing, and 
     after-sales service of goods, where such costs are identified 
     separately for sales promotion, marketing, and after-sales 
     service of goods on the financial statements or cost accounts 
     of the producer.
       (G) Telephone, mail, and other communications, where such 
     costs are identified separately for sales promotion, 
     marketing, and after-sales service of goods on the financial 
     statements or cost accounts of the producer.
       (H) Rent and depreciation of sales promotion, marketing, 
     and after-sales service offices and distribution centers.
       (I) Property insurance, taxes, utilities, and repair and 
     maintenance of sales promotion, marketing, and after-sales 
     service offices and distribution centers, where such costs 
     are identified separately for sales promotion, marketing, and 
     after-sales service of goods on the financial statements or 
     cost accounts of the producer.
       (J) Payments by the producer to other persons for warranty 
     repairs.
       (28) 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.
       (29) 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, but does not include the costs of 
     preparing and packaging the good for retail sale.
       (30) Size category.--The term ``size category'' means with 
     respect to a motor vehicle identified in subsection 
     (c)(1)(A)--
       (A) 85 cubic feet or less of passenger and luggage interior 
     volume;
       (B) more than 85 cubic feet, but less than 100 cubic feet, 
     of passenger and luggage interior volume;
       (C) at least 100 cubic feet, but not more than 110 cubic 
     feet, of passenger and luggage interior volume;
       (D) more than 110 cubic feet, but less than 120 cubic feet, 
     of passenger and luggage interior volume; and
       (E) 120 cubic feet or more of passenger and luggage 
     interior volume.
       (31) Territory.--The term ``territory'' means a territory 
     described in Annex 201.1 of the Agreement.
       (32) Total cost.--The term ``total cost'' means all product 
     costs, period costs, and other costs incurred in the 
     territory of one or more of the NAFTA countries.
       (33) Transaction value.--Except as provided in subsection 
     (c)(1) or (c)(2)(A), the term ``transaction value'' means the 
     price actually paid or payable for a good or material with 
     respect to a transaction of the producer of the good, 
     adjusted in accordance with the principles of paragraphs 1, 
     3, and 4 of Article 8 of the Customs Valuation Code and 
     determined without regard to whether the good or material is 
     sold for export.
       (34) Underbody.--The term ``underbody'' means the floor pan 
     of a motor vehicle.
       (35) Used.--The term ``used'' means used or consumed in the 
     production of goods.
       (q) Presidential Proclamation Authority.--
       (1) In general.--The President is authorized to proclaim, 
     as a part of the HTS--
       (A) the provisions set out in Appendix 6.A of Annex 300-B, 
     Annex 401, Annex 403.1, Annex 403.2, and Annex 403.3, of the 
     Agreement, and
       (B) any additional subordinate category necessary to carry 
     out this title consistent with the Agreement.
       (2) Modifications.--Subject to the consultation and layover 
     requirements of section 103, the President may proclaim--
       (A) modifications to the provisions proclaimed under the 
     authority of paragraph (1)(A), other than the provisions of 
     paragraph A of Appendix 6 of Annex 300-B and section XI of 
     part B of Annex 401 of the Agreement; and
       (B) a modified version of the definition of any term set 
     out in subsection (p) (and such modified version of the 
     definition shall supersede the version in subsection (p)), 
     but only if the modified version reflects solely those 
     modifications to the same term in article 415 of the 
     Agreement that are agreed to by the NAFTA countries before 
     the 1st anniversary of the date of the enactment of this Act.
       (3) Special rules for textiles.--Notwithstanding the 
     provisions of paragraph (2)(A), and subject to the 
     consultation and layover requirements of section 103, the 
     President may proclaim--
       (A) modifications to the provisions proclaimed under the 
     authority of paragraph (1)(A) as are necessary to implement 
     an agreement with one or more of the NAFTA countries pursuant 
     to paragraph 2 of section 7 of Annex 300-B of the Agreement, 
     and
       (B) before the 1st anniversary of the date of the enactment 
     of this Act, modifications to correct any typographical, 
     clerical, or other nonsubstantive technical error regarding 
     the provisions of Appendix 6.A of Annex 300-B and section XI 
     of part B of Annex 401 of the Agreement.

     SEC. 203. DRAWBACK.

       (a) Definition of a Good Subject to NAFTA Drawback.--For 
     purposes of this Act and the amendments made by subsection 
     (b), the term ``good subject to NAFTA drawback'' means any 
     imported good other than the following:
       (1) A good entered under bond for transportation and 
     exportation to a NAFTA country.
       (2) A good exported to a NAFTA country in the same 
     condition as when imported into the United States. For 
     purposes of this paragraph--
       (A) processes such as testing, cleaning, repacking, or 
     inspecting a good, or preserving it in its same condition, 
     shall not be considered to change the condition of the good, 
     and
       (B) except for a good referred to in paragraph 12 of 
     section A of Annex 703.2 of the Agreement that is exported to 
     Mexico, if a good described in the first sentence of this 
     paragraph is commingled with fungible goods and exported in 
     the same condition, the origin of the good may be determined 
     on the basis of the inventory methods provided for in the 
     regulations implementing this title.
       (3) A good--
       (A) that is--
       (i) deemed to be exported from the United States,
       (ii) used as a material in the production of another good 
     that is deemed to be exported to a NAFTA country, or
       (iii) substituted for by a good of the same kind and 
     quality that is used as a material in the production of 
     another good that is deemed to be exported to a NAFTA 
     country, and
       (B) that is delivered--
       (i) to a duty-free shop,
       (ii) for ship's stores or supplies for ships or aircraft, 
     or
       (iii) for use in a project undertaken jointly by the United 
     States and a NAFTA country and destined to become the 
     property of the United States.
       (4) A good exported to a NAFTA country for which a refund 
     of customs duties is granted by reason of--
       (A) the failure of the good to conform to sample or 
     specification, or
       (B) the shipment of the good without the consent of the 
     consignee.
       (5) A good that qualifies under the rules of origin set out 
     in section 202 that is--
       (A) exported to a NAFTA country,
       (B) used as a material in the production of another good 
     that is exported to a NAFTA country, or
       (C) substituted for by a good of the same kind and quality 
     that is used as a material in the production of another good 
     that is exported to a NAFTA country.
       (6) A good provided for in subheading 1701.11.02 of the HTS 
     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 or 1701.99.99 (relating to refined sugar).
       (7) A citrus product that is exported to Canada.
       (8) A good used as a material, or substituted for by a good 
     of the same kind and quality that is used as a material, in 
     the production of--
       (A) apparel, or
       (B) a good provided for in subheading 6307.90.99 (insofar 
     as it relates to furniture moving pads), 5811.00.20, or 
     5811.00.30 of the HTS,

     that is exported to Canada and that is subject to Canada's 
     most-favored-nation rate of duty upon importation into 
     Canada.
     Where in paragraph (6) a good referred to by an item is 
     described in parentheses following the item, the description 
     is provided for purposes of reference only.
       (b) Consequential Amendments With Delayed Effect.--
       (1) Bonded manufacturing warehouses.--The last paragraph of 
     section 311 of the Tariff Act of 1930 (19 U.S.C. 1311) is 
     amended to read as follows:
       ``No article manufactured in a bonded warehouse from 
     materials that are goods subject to NAFTA drawback, as 
     defined in section 203(a) of the North American Free Trade 
     Agreement Implementation Act, may be withdrawn from warehouse 
     for exportation to a NAFTA country, as defined in section 
     2(4) of that Act, without assessment of a duty on the 
     materials in their condition and quantity, and at their 
     weight, at the time of importation into the United States. 
     The duty shall be paid before the 61st day after the date of 
     exportation, except that upon the presentation, before such 
     61st day, of satisfactory evidence of the amount of any 
     customs duties paid to the NAFTA country on the article, the 
     customs duty may be waived or reduced (subject to section 
     508(b)(2)(B)) in an amount that does not exceed the lesser 
     of--
       ``(1) the total amount of customs duties paid or owed on 
     the materials on importation into the United States, or
       ``(2) the total amount of customs duties paid on the 
     article to the NAFTA country.

     If Canada ceases to be a NAFTA country and the suspension of 
     the operation of the United States-Canada Free-Trade 
     Agreement thereafter terminates, no article manufactured in a 
     bonded warehouse, except to the extent that such article is 
     made from an article that is a drawback eligible good under 
     section 204(a) of the United States-Canada Free-Trade 
     Agreement Implementation Act of 1988, may be withdrawn from 
     such warehouse for exportation to Canada during the period 
     such Agreement is in operation without payment of a duty on 
     such imported merchandise in its condition, and at the rate 
     of duty in effect, at the time of importation.''.
       (2) Bonded smelting and refining warehouses.--Section 312 
     of the Tariff Act of 1930 (19 U.S.C. 1312) is amended--
       (A) in paragraphs (1) and (4) of subsection (b), by 
     striking out the parenthetical matter and the final ``, or'' 
     and by adding at the end the following:

     ``; except that in the case of a withdrawal for exportation 
     of such a product to a NAFTA country, as defined in section 
     2(4) of the North American Free Trade Agreement 
     Implementation Act, if any of the imported metal-bearing 
     materials are goods subject to NAFTA drawback, as defined in 
     section 203(a) of that Act, the duties on the materials shall 
     be paid, and the charges against the bond canceled, before 
     the 61st day after the date of exportation; but upon the 
     presentation, before such 61st day, of satisfactory evidence 
     of the amount of any customs duties paid to the NAFTA country 
     on the product, the duties on the materials may be waived or 
     reduced (subject to section 508(b)(2)(B)) in an amount that 
     does not exceed the lesser of--
       ``(A) the total amount of customs duties owed on the 
     materials on importation into the United States, or
       ``(B) the total amount of customs duties paid to the NAFTA 
     country on the product, or'';
       (B) by adding at the end of subsection (b) the following 
     new flush sentence.

     ``If Canada ceases to be a NAFTA country and the suspension 
     of the operation of the United States-Canada Free-Trade 
     Agreement thereafter terminates, no charges against such bond 
     may be canceled in whole or part upon an exportation to 
     Canada under paragraph (1) or (4) during the period such 
     Agreement is in operation except to the extent that the 
     metal-bearing materials were of Canadian origin as determined 
     in accordance with section 202 of the United States-Canada 
     Free-Trade Agreement Implementation Act of 1988.''; and
       (C) in subsection (d) by striking out the parenthetical 
     matter and by inserting before the period the following:

     ``; except that in the case of a withdrawal for exportation 
     to a NAFTA country, as defined in section 2(4) of the North 
     American Free Trade Agreement Implementation Act, if any of 
     the imported metal-bearing materials are goods subject to 
     NAFTA drawback, as defined in section 203(a) of that Act, 
     charges against the bond shall be paid before the 61st day 
     after the date of exportation; but upon the presentation, 
     before such 61st day, of satisfactory evidence of the amount 
     of any customs duties paid to the NAFTA country on the 
     product, the bond shall be credited (subject to section 
     508(b)(2)(B)) in an amount not to exceed the lesser of--
       ``(1) the total amount of customs duties paid or owed on 
     the materials on importation into the United States, or
       ``(2) the total amount of customs duties paid to the NAFTA 
     country on the product.

     If Canada ceases to be a NAFTA country and the suspension of 
     the operation of the United States-Canada Free-Trade 
     Agreement thereafter terminates, no bond shall be credited 
     under this subsection with respect to an exportation of a 
     product to Canada during the period such Agreement is in 
     operation except to the extent that the product is a drawback 
     eligible good under section 204(a) of the United States-
     Canada Free Trade Agreement Implementation Act of 1988''.
       (3) Drawback.--Subsections (n) and (o) of section 313 of 
     the Tariff Act of 1930 (19 U.S.C. 1313(n) and (o)) are 
     amended to read as follows:
       ``(n)(1) For purposes of this subsection and subsection 
     (o)--
       ``(A) the term `NAFTA Act' means the North American Free 
     Trade Agreement Implementation Act;
       ``(B) the terms `NAFTA country' and `good subject to NAFTA 
     drawback' have the same respective meanings that are given 
     such terms in sections 2(4) and 203(a) of the NAFTA Act; and
       ``(C) a refund, waiver, or reduction of duty under 
     paragraph (2) of this subsection or paragraph (1) of 
     subsection (o) is subject to section 508(b)(2)(B).
       ``(2) For purposes of subsections (a), (b), (f), (h), (p), 
     and (q), if an article that is exported to a NAFTA country is 
     a good subject to NAFTA drawback, no customs duties on the 
     good may be refunded, waived, or reduced in an amount that 
     exceeds the lesser of--
       ``(A) the total amount of customs duties paid or owed on 
     the good on importation into the United States, or
       ``(B) the total amount of customs duties paid on the good 
     to the NAFTA country.
       ``(3) If Canada ceases to be a NAFTA country and the 
     suspension of the operation of the United States-Canada Free-
     Trade Agreement thereafter terminates, then for purposes of 
     subsections (a), (b), (f), (h), (j)(2), and (q), the shipment 
     to Canada during the period such Agreement is in operation of 
     an article made from or substituted for, as appropriate, a 
     drawback eligible good under section 204(a) of the United 
     States-Canada Free-Trade Implementation Act of 1988 does not 
     constitute an exportation.
       ``(o)(1) For purposes of subsection (g), if--
       ``(A) a vessel is built for the account and ownership of a 
     resident of a NAFTA country or the government of a NAFTA 
     country, and
       ``(B) imported materials that are used in the construction 
     and equipment of the vessel are goods subject to NAFTA 
     drawback,

     the amount of customs duties refunded, waived, or reduced on 
     such materials may not exceed the lesser of the total amount 
     of customs duties paid or owed on the materials on 
     importation into the United States or the total amount of 
     customs duties paid on the vessel to the NAFTA country.
       ``(2) If Canada ceases to be a NAFTA country and the 
     suspension of the operation of the United States-Canada Free-
     Trade Agreement thereafter terminates, then for purposes of 
     subsection (g), vessels built for Canadian account and 
     ownership, or for the Government of Canada, may not be 
     considered to be built for any foreign account and ownership, 
     or for the government of any foreign country, except to the 
     extent that the materials in such vessels are drawback 
     eligible goods under section 204(a) of the United States-
     Canada Free-Trade Implementation Act of 1988.''.
       (4) Manipulation in warehouse.--Section 562 of the Tariff 
     Act of 1930 (19 U.S.C. 1562) is amended--
       (A) in the second sentence by striking out ``without 
     payment of duties--'' and inserting a dash;
       (B) by striking out paragraphs (1), (2), and (3) and 
     inserting the following:
       ``(1) without payment of duties for exportation to a NAFTA 
     country, as defined in section 2(4) of the North American 
     Free Trade Agreement Implementation Act, if the merchandise 
     is of a kind described in any of paragraphs (1) through (8) 
     of section 203(a) of that Act;
       ``(2) for exportation to a NAFTA country if the merchandise 
     consists of goods subject to NAFTA drawback, as defined in 
     section 203(a) of that Act, except that--
       ``(A) the merchandise may not be withdrawn from warehouse 
     without assessment of a duty on the merchandise in its 
     condition and quantity, and at its weight, at the time of 
     withdrawal from the warehouse with such additions to or 
     deductions from the final appraised value as may be necessary 
     by reason of change in condition, and
       ``(B) duty shall be paid on the merchandise before the 61st 
     day after the date of exportation, but upon the presentation, 
     before such 61st day, of satisfactory evidence of the amount 
     of any customs duties paid to the NAFTA country on the 
     merchandise, the customs duty may be waived or reduced 
     (subject to section 508(b)(2)(B)) in an amount that does not 
     exceed the lesser of--
       ``(i) the total amount of customs duties paid or owed on 
     the merchandise on importation into the United States, or
       ``(ii) the total amount of customs duties paid on the 
     merchandise to the NAFTA country;
       ``(3) without payment of duties for exportation to any 
     foreign country other than to a NAFTA country or to Canada 
     when exports to that country are subject to paragraph (4);
       ``(4) without payment of duties for exportation to Canada 
     (if that country ceases to be a NAFTA country and the 
     suspension of the operation of the United States-Canada Free-
     Trade Agreement thereafter terminates), but the exemption 
     from the payment of duties under this paragraph applies only 
     in the case of an exportation during the period such 
     Agreement is in operation of merchandise that--
       ``(A) is only cleaned, sorted, or repacked in a bonded 
     warehouse, or
       ``(B) is a drawback eligible good under section 204(a) of 
     the United States-Canada Free-Trade Agreement Implementation 
     Act of 1988; and
       ``(5) without payment of duties for shipment to the Virgin 
     Islands, American Samoa, Wake Island, Midway Island, Kingman 
     Reef, Johnston Island or the island of Guam.''; and
       (B) in the third sentence by striking out ``paragraph (1) 
     of the preceding sentence'' and inserting ``paragraph (4) of 
     the preceding sentence''.
       (5) Foreign trade zones.--Section 3(a) of the Act of June 
     18, 1934 (commonly known as the ``Foreign Trade Zones Act''; 
     19 U.S.C. 81c(a)) is amended--
       (A) in the last proviso--
       (i) by inserting after ``That'' the following: ``, if 
     Canada ceases to be a NAFTA country and the suspension of the 
     operation of the United States-Canada Free-Trade Agreement 
     thereafter terminates,''; and
       (ii) by striking out ``on or after January 1, 1994, or such 
     later date as may be proclaimed by the President under 
     section 204(b)(2)(B) of such Act of 1988,'' and inserting 
     ``during the period such Agreement is in operation''; and
       (B) by inserting before such last proviso the following new 
     proviso: ``: Provided, further, That no merchandise that 
     consists of goods subject to NAFTA drawback, as defined in 
     section 203(a) of the North American Free Trade Agreement 
     Implementation Act, that is manufactured or otherwise changed 
     in condition shall be exported to a NAFTA country, as defined 
     in section 2(4) of that Act, without an assessment of a duty 
     on the merchandise in its condition and quantity, and at its 
     weight, at the time of its exportation (or if the privilege 
     in the first proviso to this subsection was requested, an 
     assessment of a duty on the merchandise in its condition and 
     quantity, and at its weight, at the time of its admission 
     into the zone) and the payment of the assessed duty before 
     the 61st day after the date of exportation of the article, 
     except that upon the presentation, before such 61st day, of 
     satisfactory evidence of the amount of any customs duties 
     paid or owed to the NAFTA country on the article, the customs 
     duty may be waived or reduced (subject to section 
     508(b)(2)(B) of the Tariff Act of 1930) in an amount that 
     does not exceed the lesser of (1) the total amount of customs 
     duties paid or owed on the merchandise on importation into 
     the United States, or (2) the total amount of customs duties 
     paid on the article to the NAFTA country:''.
       (c) Consequential Amendment With Immediate Effect.--Section 
     313(j) of the Tariff Act of 1930 (19 U.S.C. 1313(j)) is 
     amended--
       (1) by striking out ``If'' in paragraph (2) and inserting 
     ``Subject to paragraph (4), if''; and
       (2) by adding at the end the following new paragraph:
       ``(4) Effective upon the entry into force of the North 
     American Free Trade Agreement, the exportation to a NAFTA 
     country, as defined in section 2(4) of the North American 
     Free Trade Agreement Implementation Act, of merchandise that 
     is fungible with and substituted for imported merchandise, 
     other than merchandise described in paragraphs (1) through 
     (8) of section 203(a) of that Act, shall not constitute an 
     exportation for purposes of paragraph (2).''.
       (d) Elimination of Drawback for Section 22 Fees.--
     Notwithstanding any other provision of law, the Secretary of 
     the Treasury may not, on condition of export, refund or 
     reduce a fee applied pursuant to section 22 of the 
     Agricultural Adjustment Act (7 U.S.C. 624) with respect to 
     goods included under subsection (a) that are exported to--
       (1) Canada after December 31, 1995, for so long as it is a 
     NAFTA country; or
       (2) Mexico after December 31, 2000, for so long as it is a 
     NAFTA country.
       (e) Inapplicability to Countervailing and Antidumping 
     Duties.--Nothing in this section or the amendments made by it 
     shall be considered to authorize the refund, waiver, or 
     reduction of countervailing duties or antidumping duties 
     imposed on an imported good.

     SEC. 204. CUSTOMS USER FEES.

       Paragraph (10) of section 13031(b) of the Consolidated 
     Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
     58c(b)(10)) is amended to read as follows:
       ``(10)(A) The fee charged under subsection (a)(9) or (10) 
     with respect to goods of Canadian origin (as determined under 
     section 202 of the United States-Canada Free-Trade Agreement) 
     when the United States-Canada Free-Trade Agreement is in 
     force shall be in accordance with section 403 of that 
     Agreement.
       ``(B) For goods qualifying under the rules of origin set 
     out in section 202 of the North American Free Trade Agreement 
     Implementation Act, the fee under subsection (a)(9) or (10)--
       ``(i) may not be charged with respect to goods that qualify 
     to be marked as goods of Canada pursuant to Annex 311 of the 
     North American Free Trade Agreement, for such time as Canada 
     is a NAFTA country, as defined in section 2(4) of such 
     Implementation Act; and
       ``(ii) may not be increased after December 31, 1993, and 
     may not be charged after June 29, 1999, with respect to goods 
     that qualify to be marked as goods of Mexico pursuant to such 
     Annex 311, for such time as Mexico is a NAFTA country.

     Any service for which an exemption from such fee is provided 
     by reason of this paragraph may not be funded with money 
     contained in the Customs User Fee Account.''.

     SEC. 205. ENFORCEMENT.

       (a) Recordkeeping Requirements.--Section 508 of the Tariff 
     Act of 1930 (19 U.S.C. 1508) is amended as follows:
       (1) Subsection (b) is amended to read as follows:
       ``(b) Exportations to Free Trade Countries.--
       ``(1) Definitions.--As used in this subsection--
       ``(A) The term `associated records' means, in regard to an 
     exported good under paragraph (2), records associated with--
       ``(i) the purchase of, cost of, value of, and payment for, 
     the good;
       ``(ii) the purchase of, cost of, value of, and payment for, 
     all material, including indirect materials, used in the 
     production of the good; and

       ``(iii) the production of the good.
     For purposes of this subparagraph, the terms `indirect 
     material,' `material,' `preferential tariff treatment,' 
     `used,' and `value' have the respective meanings given them 
     in articles 415 and 514 of the North American Free Trade 
     Agreement.
       ``(B) The term `NAFTA Certificate of Origin' means the 
     certification, established under article 501 of the North 
     American Free Trade Agreement, that a good qualifies as an 
     originating good under such Agreement.
       ``(2) Exports to nafta countries.--
       ``(A) In general.--Any person who completes and signs a 
     NAFTA Certificate of Origin for a good for which preferential 
     treatment under the North American Free Trade Agreement is 
     claimed shall make, keep, and render for examination and 
     inspection all records relating to the origin of the good 
     (including the Certificate or copies thereof) and the 
     associated records.
       ``(B) Claims for certain waivers, reductions, or refunds of 
     duties or for credit against bonds.--
       ``(i) In general.--Any person that claims with respect to 
     an article--

       ``(I) a waiver or reduction of duty under the last 
     paragraph of section 311, section 312(b)(1) or (4), section 
     562(2), or the last proviso to section 3(a) of the Foreign 
     Trade Zones Act;
       ``(II) a credit against a bond under section 312(d); or
       ``(III) a refund, waiver, or reduction of duty under 
     section 313(n)(2) or (o)(1);

     must disclose to the Customs Service the information 
     described in clause (ii).
       ``(ii) Information required.--Within 30 days after making a 
     claim described in clause (i) with respect to an article, the 
     person making the claim must disclose to the Customs Service 
     whether that person has prepared, or has knowledge that 
     another person has prepared, a NAFTA Certificate of Origin 
     for the article. If after such 30-day period the person 
     making the claim either--

       ``(I) prepares a NAFTA Certificate of Origin for the 
     article; or
       ``(II) learns of the existence of such a Certificate for 
     the article;

     that person, within 30 days after the occurrence described in 
     subclause (I) or (II), must disclose the occurrence to the 
     Customs Service.
       ``(iii) Action on claim.--If the Customs Service determines 
     that a NAFTA Certificate of Origin has been prepared with 
     respect to an article for which a claim described in clause 
     (i) is made, the Customs Service may make such adjustments 
     regarding the previous customs treatment of the article as 
     may be warranted.
       ``(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.''.
       (2) Subsection (c) is amended to read as follows:
       ``(c) Period of Time.--The records required by subsections 
     (a) and (b) shall be kept for such periods of time as the 
     Secretary shall prescribe; except that--
       ``(1) no period of time for the retention of the records 
     required under subsection (a) or (b)(3) may exceed 5 years 
     from the date of entry or exportation, as appropriate;
       ``(2) the period of time for the retention of the records 
     required under subsection (b)(2) shall be at least 5 years 
     from the date of signature of the NAFTA Certificate of 
     Origin; and
       ``(3) records for any drawback claim shall be kept until 
     the 3rd anniversary of the date of payment of the claim.''.
       (3) Subsection (e) is amended to read as follows:
       ``(e) Subsection (b) Penalties.--
       ``(1) Relating to nafta exports.--Any person who fails to 
     retain records required by paragraph (2) of subsection (b) or 
     the regulations issued to implement that paragraph shall be 
     liable for--
       ``(A) a civil penalty not to exceed $10,000; or
       ``(B) the general recordkeeping penalty that applies under 
     the customs laws;
     whichever penalty is higher.
       ``(2) Relating to canadian agreement exports.--Any person 
     who fails to retain the records required by paragraph (3) of 
     subsection (b) or the regulations issued to implement that 
     paragraph shall be liable for a civil penalty not to exceed 
     $10,000.''.
       (b) Conforming Amendment.--Section 509(a)(2)(A)(ii) of the 
     Tariff Act of 1930 (19 U.S.C. 1509(a)(2)(A)(ii)) is amended 
     to read as follows:
       ``(ii) exported merchandise, or knowingly caused 
     merchandise to be exported, to a NAFTA country (as defined in 
     section 2(4) of the North American Free Trade Agreement 
     Implementation Act) or 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,''.
       (c) Disclosure of Incorrect Information.--Section 592 of 
     the Tariff Act of 1930 (19 U.S.C. 1592) is amended--
       (1) in subsection (c)--
       (A) by redesignating paragraph (5) as paragraph (6); and
       (B) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Prior disclosure regarding nafta claims.--An importer 
     shall not be subject to penalties under subsection (a) for 
     making an incorrect claim for preferential tariff treatment 
     under section 202 of the North American Free Trade Agreement 
     Implementation Act if the importer--
       ``(A) has reason to believe that the NAFTA Certificate of 
     Origin (as defined in section 508(b)(1)) on which the claim 
     was based contains incorrect information; and
       ``(B) in accordance with regulations issued by the 
     Secretary, voluntarily and promptly makes a corrected 
     declaration and pays any duties owing.''; and
       (2) by adding at the end the following new subsection:
       ``(f) False Certifications Regarding Exports to NAFTA 
     Countries.--
       ``(1)  In general.--Subject to paragraph (3), it is 
     unlawful for any person to certify falsely, by fraud, gross 
     negligence, or negligence, in a NAFTA Certificate of Origin 
     (as defined in section 508(b)(1)) that a good to be exported 
     to a NAFTA country (as defined in section 2(4) of the North 
     American Free Trade Agreement Implementation Act) qualifies 
     under the rules of origin set out in section 202 of that Act.
       ``(2)  Applicable provisions.--The procedures and penalties 
     of this section that apply to a violation of subsection (a) 
     also apply to a violation of paragraph (1), except that--
       ``(A) subsection (d) does not apply, and
       ``(B) subsection (c)(5) applies only if the person 
     voluntarily and promptly provides, to all persons to whom the 
     person provided the NAFTA Certificate of Origin, written 
     notice of the falsity of the Certificate.
       ``(3) Exception.--A person may not be considered to have 
     violated paragraph (1) if--
       ``(A) the information was correct at the time it was 
     provided in a NAFTA Certificate of Origin but was later 
     rendered incorrect due to a change in circumstances; and
       ``(B) the person voluntarily and promptly provides written 
     notice of the change to all persons to whom the person 
     provided the Certificate of Origin.''.

     SEC. 206. RELIQUIDATION OF ENTRIES FOR NAFTA-ORIGIN GOODS.

       Section 520 of the Tariff Act of 1930 (19 U.S.C. 1520) is 
     amended by adding at the end the following new subsection:
       ``(d) Notwithstanding the fact that a valid protest was not 
     filed, the Customs Service may, in accordance with 
     regulations prescribed by the Secretary, reliquidate an entry 
     to refund any excess duties paid on a good qualifying under 
     the rules of origin set out in section 202 of the North 
     American Free Trade Agreement Implementation Act for which no 
     claim for preferential tariff treatment was made at the time 
     of importation if the importer, within 1 year after the date 
     of importation, files, in accordance with those regulations, 
     a claim that includes--
       ``(1) a written declaration that the good qualified under 
     those rules at the time of importation;
       ``(2) copies of all applicable NAFTA Certificates of Origin 
     (as defined in section 508(b)(1)); and
       ``(3) such other documentation relating to the importation 
     of the goods as the Customs Service may require.''.

     SEC. 207. COUNTRY OF ORIGIN MARKING OF NAFTA GOODS.

       (a) Amendments to Tariff Act of 1930.--Section 304 of the 
     Tariff Act of 1930 (19 U.S.C. 1304) is amended--
       (1) in subsection (c)(1), by striking ``or engraving'' and 
     inserting ``engraving, or continuous paint stenciling'';
       (2) in subsection (c)(2)--
       (A) by striking ``four'' and inserting ``five''; and
       (B) by striking ``such as paint stenciling'';
       (3) in subsection (e), by striking ``or engraving'' and 
     inserting ``engraving, or an equally permanent method of 
     marking'';
       (4) by redesignating subsection (h) as subsection (i); and
       (5) by inserting after subsection (g) the following new 
     subsection:
       ``(h) Treatment of Goods of a NAFTA Country.--
       ``(1) Application of section.--In applying this section to 
     an article that qualifies as a good of a NAFTA country (as 
     defined in section 2(4) of the North American Free Trade 
     Agreement Implementation Act) under the regulations issued by 
     the Secretary to implement Annex 311 of the North American 
     Free Trade Agreement--
       ``(A) the exemption under subsection (a)(3)(H) shall be 
     applied by substituting `reasonably know' for `necessarily 
     know';
       ``(B) the Secretary shall exempt the good from the 
     requirements for marking under subsection (a) if the good--
       ``(i) is an original work of art, or
       ``(ii) is provided for under subheading 6904.10, heading 
     8541, or heading 8542 of the Harmonized Tariff Schedule of 
     the United States; and
       ``(C) subsection (b) does not apply to the usual container 
     of any good described in subsection (a)(3)(E) or (I) or 
     subparagraph (B)(i) or (ii) of this paragraph.
       ``(2) Petition rights of nafta exporters and producers 
     regarding marking determinations.--
       ``(A) Definitions.--For purposes of this paragraph:
       ``(i) The term `adverse marking decision' means a 
     determination by the Customs Service which an exporter or 
     producer of merchandise believes to be contrary to Annex 311 
     of the North American Free Trade Agreement.
       ``(ii) A person may not be treated as the exporter or 
     producer of merchandise regarding which an adverse marking 
     decision was made unless such person--

       ``(I) if claiming to be the exporter, is located in a NAFTA 
     country and is required to maintain records in that country 
     regarding exportations to NAFTA countries; or
       ``(II) if claiming to be the producer, grows, mines, 
     harvests, fishes, traps, hunts, manufactures, processes, or 
     assembles such merchandise in a NAFTA country.

       ``(B) Intervention or petition regarding adverse marking 
     decisions.--If the Customs Service makes an adverse marking 
     decision regarding any merchandise, the Customs Service 
     shall, upon written request by the exporter or producer of 
     the merchandise, provide to the exporter or producer a 
     statement of the basis for the decision. If the exporter or 
     producer believes that the decision is not correct, it may 
     intervene in any protest proceeding initiated by the importer 
     of the merchandise. If the importer does not file a protest 
     with regard to the decision, the exporter or producer may 
     file a petition with the Customs Service setting forth--
       ``(i) a description of the merchandise; and
       ``(ii) the basis for its claim that the merchandise should 
     be marked as a good of a NAFTA country.
       ``(C) Effect of determination regarding decision.--If, 
     after receipt and consideration of a petition filed by an 
     exporter or producer under subparagraph (B), the Customs 
     Service determines that the adverse marking decision--
       ``(i) is not correct, the Customs Service shall notify the 
     petitioner of the determination and all merchandise entered, 
     or withdrawn from warehouse for consumption, more than 30 
     days after the date that notice of the determination under 
     this clause is published in the weekly Custom Bulletin shall 
     be marked in conformity with the determination; or
       ``(ii) is correct, the Customs Service shall notify the 
     petitioner that the petition is denied.
       ``(D) Judicial review.--For purposes of judicial review, 
     the denial of a petition under subparagraph (C)(ii) shall be 
     treated as if it were a denial of a petition of an interested 
     party under section 516 regarding an issue arising under any 
     of the preceding provisions of this section.''.
       (b) Coordination With 1988 Act Regarding Certain 
     Articles.--Articles that qualify as goods of a NAFTA country 
     under regulations issued by the Secretary in accordance with 
     Annex 311 of the Agreement are exempt from the marking 
     requirements promulgated by the Secretary of the Treasury 
     under section 1907(c) of the Omnibus Trade and 
     Competitiveness Act of 1988 (Public Law 100-418), but are 
     subject to the requirements of section 304 of the Tariff Act 
     of 1930 (19 U.S.C. 1304).

     SEC. 208. PROTESTS AGAINST ADVERSE ORIGIN DETERMINATIONS.

       Section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) is 
     amended--
       (1) in subsection (c)(1) by inserting ``, or with respect 
     to a determination of origin under section 202 of the North 
     American Free Trade Agreement Implementation Act,'' after 
     ``with respect to any one category of merchandise'' in the 
     fourth sentence;
       (2) in subsection (c)(2)--
       (A) by striking out ``or'' at the end of subparagraph (D);
       (B) by redesignating subparagraph (E) as subparagraph (F);
       (C) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) with respect to a determination of origin under 
     section 202 of the North American Free Trade Agreement 
     Implementation Act, any exporter or producer of the 
     merchandise subject to that determination, if the exporter or 
     producer completed and signed a NAFTA Certificate of Origin 
     covering the merchandise; or''; and
       (D) by striking ``clauses (A) through (D)'' in subparagraph 
     (F) (as redesignated by subparagraph (B)), and inserting 
     ``clauses (A) through (E)''; and
       (3) by adding at the end the following new subsections:
       ``(e) Advance Notice of Certain Determinations.--Except as 
     provided in subsection (f), an exporter or producer referred 
     to in subsection (c)(2)(E) shall be provided notice in 
     advance of an adverse determination of origin under section 
     202 of the North American Free Trade Agreement Implementation 
     Act. The Secretary may, by regulations, prescribe the time 
     period in which such advance notice shall be issued and 
     authorize the Customs Service to provide in the notice the 
     entry number and any other entry information considered 
     necessary to allow the exporter or producer to exercise the 
     rights provided by this section.
       ``(f) Denial of Preferential Treatment.--If the Customs 
     Service finds indications of a pattern of conduct by an 
     exporter or producer of false or unsupported representations 
     that goods qualify under the rules of origin set out in 
     section 202 of the North American Free Trade Agreement 
     Implementation Act--
       ``(1) the Customs Service, in accordance with regulations 
     issued by the Secretary, may deny preferential tariff 
     treatment to entries of identical goods exported or produced 
     by that person; and
       ``(2) the advance notice requirement in subsection (e) 
     shall not apply to that person;

      until the person establishes to the satisfaction of the 
     Customs Service that its representations are in conformity 
     with section 202.''.

     SEC. 209. EXCHANGE OF INFORMATION.

       Section 628 of the Tariff Act of 1930 (19 U.S.C. 1628) is 
     amended by adding at the end the following new subsection:
       ``(c) The Secretary may authorize the Customs Service to 
     exchange information with any government agency of a NAFTA 
     country, as defined in section 2(4) of the North American 
     Free Trade Agreement Implementation Act, if the Secretary--
       ``(1) reasonably believes the exchange of information is 
     necessary to implement chapter 3, 4, or 5 of the North 
     American Free Trade Agreement, and
       ``(2) obtains assurances from such country that the 
     information will be held in confidence and used only for 
     governmental purposes.''.

     SEC. 210. PROHIBITION ON DRAWBACK FOR TELEVISION PICTURE 
                   TUBES.

       Notwithstanding any other provision of law, no customs 
     duties may be refunded, waived, or reduced on color cathode-
     ray television picture tubes, including video monitor 
     cathode-ray tubes (provided for in subheading 8540.11.00 of 
     the HTS), that are nonoriginating goods under section 
     202(p)(19) and are--
       (A) exported to a NAFTA country;
       (B) used as a material in the production of other goods 
     that are exported to a NAFTA country; or
       (C) substituted for by goods of the same kind and quality 
     used as a material in the production of other goods that are 
     exported to a NAFTA country.

     SEC. 211. MONITORING OF TELEVISION AND PICTURE TUBE IMPORTS.

       (a) Monitoring.--Beginning on the date the Agreement enters 
     into force with respect to the United States, the United 
     States Customs Service shall, for a period of 5 years, 
     monitor imports into the United States of articles described 
     in subheading 8528.10 of the HTS from NAFTA countries and 
     shall take action to exercise all rights of the United States 
     under chapter 5 of the Agreement with respect to such 
     imports. The United States Customs Service shall take 
     appropriate action under chapter 5 of the Agreement with 
     respect to such imports, including verifications to ensure 
     that the rules of origin under the Agreement are fully 
     complied with and that the duty drawback obligations 
     contained in article 303 and Annex 303.8 of the Agreement are 
     fully implemented and duties are correctly assessed.
       (b) Report to Trade Representative.--The United States 
     Customs Service shall make the results of the monitoring and 
     verification required by subsection (a) available to the 
     President and the Trade Representative. If, based on such 
     information, the President has reason to believe that 
     articles described in subheading 8540.11 of the HTS, intended 
     for ultimate consumption in the United States, are entering 
     the territory of a NAFTA country inconsistent with the 
     provisions of the Agreement, or have been undervalued in a 
     manner that may raise concerns under United States trade 
     laws, the President shall promptly take such action as may be 
     appropriate under all relevant provisions of the Agreement, 
     including article 317 and chapter 20, and under applicable 
     United States trade statutes.

     SEC. 212. TITLE VI AMENDMENTS.

       Any amendment in this title to a law that is also amended 
     under title VI shall be made after the title VI amendment is 
     executed.

     SEC. 213. EFFECTIVE DATES.

       (a) Provisions Effective on Date of Enactment.--Section 212 
     and this section take effect on the date of the enactment of 
     this Act.
       (b) Provisions Effective When Agreement Enters Into 
     Force.--Section 201, section 202, section 203(a), (d), and 
     (e), section 210 and section 211, the amendment made by 
     section 203(c), and the amendments made by sections 204 
     through 209 take effect on the date the Agreement enters into 
     force with respect to the United States.
       (c) Provisions With Delayed Effective Dates.--The 
     amendments made by section 203(b) apply--
       (1) with respect to exports from the United States to 
     Canada--
       (A) on January 1, 1996, if Canada is a NAFTA country on 
     that date, and
       (B) after such date for so long as Canada continues to be a 
     NAFTA country; and
       (2) with respect to exports from the United States to 
     Mexico--
       (A) on January 1, 2001, if Mexico is a NAFTA country on 
     that date; and
       (B) after such date for so long as Mexico continues to be a 
     NAFTA country.
      TITLE III--APPLICATION OF AGREEMENT TO SECTORS AND SERVICES
                         Subtitle A--Safeguards

       PART 1--RELIEF FROM IMPORTS BENEFITING FROM THE AGREEMENT

     SEC. 301. DEFINITIONS.

       As used in this part:
       (1) Canadian article.--The term ``Canadian article'' means 
     an article that--
       (A) is an originating good under chapter 4 of the 
     Agreement; and
       (B) qualifies under the Agreement to be marked as a good of 
     Canada.
       (2) Mexican article.--The term ``Mexican article'' means an 
     article that--
       (A) is an originating good under chapter 4 of the 
     Agreement; and
       (B) qualifies under the Agreement to be marked as a good of 
     Mexico.

     SEC. 302. COMMENCING OF ACTION FOR RELIEF.

       (a) Filing of Petition.--
       (1) In general.--A petition requesting action under this 
     part for the purpose of adjusting to the obligations of the 
     United States under the Agreement may be filed with the 
     International Trade Commission by an entity, including a 
     trade association, firm, certified or recognized union, or 
     group of workers, that is representative of an industry. The 
     International Trade Commission shall transmit a copy of any 
     petition filed under this subsection to the Trade 
     Representative.
       (2) Provisional relief.--An entity filing a petition under 
     this subsection may request that provisional relief be 
     provided as if the petition had been filed under section 
     202(a) of the Trade Act of 1974.
       (3) Critical circumstances.--An allegation that critical 
     circumstances exist must be included in the petition or made 
     on or before the 90th day after the date on which the 
     investigation is initiated under subsection (b).
       (b) Investigation and Determination.--Upon the filing of a 
     petition under subsection (a), the International Trade 
     Commission, unless subsection (d) applies, shall promptly 
     initiate an investigation to determine whether, as a result 
     of the reduction or elimination of a duty provided for under 
     the Agreement, a Canadian article or a Mexican article, as 
     the case may be, is being imported into the United States in 
     such increased quantities (in absolute terms) and under such 
     conditions so that imports of the article, alone, constitute 
     a substantial cause of--
       (1) serious injury; or
       (2) except in the case of a Canadian article, a threat of 
     serious injury;

     to the domestic industry producing an article that is like, 
     or directly competitive with, the imported article.
       (c) Applicable Provisions.--The provisions of--
       (1) paragraphs (1)(B), (3) (except subparagraph (A)), and 
     (4) of subsection (b);
       (2) subsection (c); and
       (3) subsection (d),

     of section 202 of the Trade Act of 1974 (19 U.S.C. 2252) 
     apply with respect to any investigation initiated under 
     subsection (b).
       (d) Articles Exempt From Investigation.--No investigation 
     may be initiated under this section with respect to--
       (1) any Canadian article or Mexican article if import 
     relief has been provided under this part with respect to that 
     article; or
       (2) any textile or apparel article set out in Appendix 1.1 
     of Annex 300-B of the Agreement.

     SEC. 303. INTERNATIONAL TRADE COMMISSION ACTION ON PETITION.

       (a) Determination.--By no later than 120 days after the 
     date on which an investigation is initiated under section 
     302(b) with respect to a petition, the International Trade 
     Commission shall--
       (1) make the determination required under that section; and
       (2) if the determination referred to in paragraph (1) is 
     affirmative and an allegation regarding critical 
     circumstances was made under section 302(a), make a 
     determination regarding that allegation.
       (b) Additional Finding and Recommendation if Determination 
     Affirmative.--If the determination made by the International 
     Trade Commission under subsection (a) with respect to imports 
     of an article is affirmative, the International Trade 
     Commission shall find, and recommend to the President in the 
     report required under subsection (c), the amount of import 
     relief that is necessary to remedy or, except in the case of 
     imports of a Canadian article, prevent the injury found by 
     the International Trade Commission in the determination. The 
     import relief recommended by the International Trade 
     Commission under this subsection shall be limited to that 
     described in section 304(c).
       (c) Report to President.--No later than the date that is 30 
     days after the date on which a determination is made under 
     subsection (a) with respect to an investigation, the 
     International Trade Commission shall submit to the President 
     a report that shall include--
       (1) a statement of the basis for the determination;
       (2) dissenting and separate views; and
       (3) any finding made under subsection (b) regarding import 
     relief.
       (d) Public Notice.--Upon submitting a report to the 
     President under subsection (c), the International Trade 
     Commission shall promptly make public such report (with the 
     exception of information which the International Trade 
     Commission determines to be confidential) and shall cause a 
     summary thereof to be published in the Federal Register.
       (e) Applicable Provisions.--For purposes of this part, 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. 304. PROVISION OF RELIEF.

       (a) In General.--No later than the date that is 30 days 
     after the date on which the President receives the report of 
     the International Trade Commission containing an affirmative 
     determination of the International Trade Commission under 
     section 303(a), the President, subject to subsection (b), 
     shall provide relief from imports of the article that is the 
     subject of such determination to the extent that the 
     President determines necessary to remedy or, except in the 
     case of imports of a Canadian article, prevent the injury 
     found by the International Trade Commission.
       (b) Exception.--The President is not required to provide 
     import relief under this section if the President determines 
     that the provision of the import relief will not provide 
     greater economic and social benefits than costs.
       (c) Nature of Relief.--The import relief (including 
     provisional relief) that the President is authorized to 
     provide under this part is as follows:
       (1) In the case of imports of a Canadian article--
       (A) the suspension of any further reduction provided for 
     under Annex 401.2 of the United States-Canada Free-Trade 
     Agreement in the duty imposed on such article;
       (B) an increase in the rate of duty imposed on such article 
     to a level that does not exceed the lesser of--
       (i) the column 1 general rate of duty imposed under the HTS 
     on like articles at the time the import relief is provided, 
     or
       (ii) the column 1 general rate of duty imposed on like 
     articles on December 31, 1988; or
       (C) in the case of a duty applied on a seasonal basis to 
     such article, an increase in the rate of duty imposed on the 
     article to a level that does not exceed the column 1 general 
     rate of duty imposed on the article for the corresponding 
     season occurring immediately before January 1, 1989.
       (2) In the case of imports of a Mexican article--
       (A) the suspension of any further reduction provided for 
     under the United States Schedule to Annex 302.2 of the 
     Agreement in the duty imposed on such article;
       (B) an increase in the rate of duty imposed on such article 
     to a level that does not exceed the lesser of--
       (i) the column 1 general rate of duty imposed under the HTS 
     on like articles at the time the import relief is provided, 
     or
       (ii) the column 1 general rate of duty imposed under the 
     HTS on like articles on the day before the date on which the 
     Agreement enters into force; or
       (C) in the case of a duty applied on a seasonal basis to 
     such article, an increase in the rate of duty imposed on the 
     article to a level that does not exceed the column 1 general 
     rate of duty imposed under the HTS on the article for the 
     corresponding season immediately occurring before the date on 
     which the Agreement enters into force.
       (d) Period of Relief.--The import relief that the President 
     is authorized to provide under this section may not exceed 3 
     years, except that, if a Canadian article or Mexican article 
     which is the subject of the action--
       (1) is provided for in an item for which the transition 
     period of tariff elimination set out in the United States 
     Schedule to Annex 302.2 of the Agreement is greater than 10 
     years; and
       (2) the President determines that the affected industry has 
     undertaken adjustment and requires an extension of the period 
     of the import relief;

     the President, after obtaining the advice of the 
     International Trade Commission, may extend the period of the 
     import relief for not more than 1 year, if the duty applied 
     during the initial period of the relief is substantially 
     reduced at the beginning of the extension period.
       (e) Rate on Mexican Articles After Termination of Import 
     Relief.--When import relief under this part is terminated 
     with respect to a Mexican article--
       (1) the rate of duty on that article after such termination 
     and on or before December 31 of the year in which termination 
     occurs shall be the rate that, according to the United States 
     Schedule to Annex 302.2 of the Agreement for the staged 
     elimination of the tariff, would have been in effect 1 year 
     after the initiation of the import relief action under 
     section 302; and
       (2) the tariff treatment for that article after December 31 
     of the year in which termination occurs shall be, at the 
     discretion of the President, either--
       (A) the rate of duty conforming to the applicable rate set 
     out in the United States Schedule to Annex 302.2; or
       (B) the rate of duty resulting from the elimination of the 
     tariff in equal annual stages ending on the date set out in 
     the United States Schedule to Annex 302.2 for the elimination 
     of the tariff.

     SEC. 305. TERMINATION OF RELIEF AUTHORITY.

       (a) General Rule.--Except as provided in subsection (b), no 
     import relief may be provided under this part--
       (1) in the case of a Canadian article, after December 31, 
     1998; or
       (2) in the case of a Mexican article, after the date that 
     is 10 years after the date on which the Agreement enters into 
     force;

     unless the article against which the action is taken is an 
     item for which the transition period for tariff elimination 
     set out in the United States Schedule to Annex 302.2 of the 
     Agreement is greater than 10 years, in which case the period 
     during which relief may be granted shall be the period of 
     staged tariff elimination for that article.
       (b) Exception.--Import relief may be provided under this 
     part in the case of a Canadian article or Mexican article 
     after the date on which such relief would, but for this 
     subsection, terminate under subsection (a), but only if the 
     Government of Canada or Mexico, as the case may be, consents 
     to such provision.

     SEC. 306. COMPENSATION AUTHORITY.

       For purposes of section 123 of the Trade Act of 1974 (19 
     U.S.C. 2133), any import relief provided by the President 
     under section 304 shall be treated as action taken under 
     chapter I of title II of such Act.

     SEC. 307. SUBMISSION OF PETITIONS.

       A petition for import relief may be submitted to the 
     International Trade Commission under--
       (1) this part;
       (2) chapter 1 of title II of the Trade Act of 1974; or
       (3) under both this part and such chapter 1 at the same 
     time, in which case the International Trade Commission shall 
     consider such petitions jointly.

     SEC. 308. SPECIAL TARIFF PROVISIONS FOR CANADIAN FRESH FRUITS 
                   AND VEGETABLES.

       (a) In general.--Section 301(a) of the United States-Canada 
     Free-Trade Agreement Implementation Act of 1988 (19 U.S.C. 
     2112 note) is amended--
       (1) in paragraph (1), by striking ``promptly'' in the flush 
     sentence at the end thereof and inserting ``immediately'',
       (2) by redesignating paragraphs (2) through (9) as 
     paragraphs (3) through (10), respectively,
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) No later than 6 days after publication in the Federal 
     Register of the notice described in paragraph (1), the 
     Secretary shall decide whether to recommend the imposition of 
     a temporary duty to the President, and if the Secretary 
     decides to make such a recommendation, the recommendation 
     shall be forwarded immediately to the President.'',
       (4) in paragraph (5), as redesignated by paragraph (2), by 
     striking ``paragraph (3)'' and inserting ``paragraph (4)'', 
     and
       (5) by amending paragraph (9), as redesignated by paragraph 
     (2), to read as follows:
       ``(9) For purposes of assisting the Secretary in carrying 
     out this subsection--
       ``(A) the Commissioner of Customs and the Director of the 
     Bureau of Census shall cooperate in providing the Secretary 
     with timely information and data relating to the importation 
     of Canadian fresh fruits and vegetables, and
       ``(B) importers shall report such information relating to 
     Canadian fresh fruits and vegetables to the Commissioner of 
     Customs at such time and in such manner as the Commissioner 
     requires.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on the date of the enactment of this Act.

     SEC. 309. PRICE-BASED SNAPBACK FOR FROZEN CONCENTRATED ORANGE 
                   JUICE.

       (a) Trigger Price Determination.--
       (1) In general.--The Secretary shall determine--
       (A) each period of 5 consecutive business days in which the 
     daily price for frozen concentrated orange juice is less than 
     the trigger price; and
       (B) for each period determined under subparagraph (A), the 
     first period occurring thereafter of 5 consecutive business 
     days in which the daily price for frozen concentrated orange 
     juice is greater than the trigger price.
       (2) Notice of determinations.--The Secretary shall 
     immediately notify the Commissioner of Customs and publish 
     notice in the Federal Register of any determination under 
     paragraph (1), and the date of such publication shall be the 
     determination date for that determination.
       (b) Imports of Mexican Articles.--Whenever after any 
     determination date for a determination under subsection 
     (a)(1)(A), the quantity of Mexican articles of frozen 
     concentrated orange juice that is entered exceeds--
       (1) 264,978,000 liters (single strength equivalent) in any 
     of calendar years 1994 through 2002; or
       (2) 340,560,000 liters (single strength equivalent) in any 
     of calendar years 2003 through 2007;

     the rate of duty on Mexican articles of frozen concentrated 
     orange juice that are entered after the date on which the 
     applicable limitation in paragraph (1) or (2) is reached and 
     before the determination date for the related determination 
     under subsection (a)(1)(B) shall be the rate of duty 
     specified in subsection (c).
       (c) Rate of Duty.--The rate of duty specified for purposes 
     of subsection (b) for articles entered on any day is the rate 
     in the HTS that is the lower of--
       (1) the column 1-General rate of duty in effect for such 
     articles on July 1, 1991; or
       (2) the column 1-General rate of duty in effect on that 
     day.
       (d) Definitions.--For purposes of this section--
       (1) The term ``daily price'' means the daily closing price 
     of the New York Cotton Exchange, or any successor as 
     determined by the Secretary, for the closest month in which 
     contracts for frozen concentrated orange juice are being 
     traded on the Exchange.
       (2) The term ``business day'' means a day in which 
     contracts for frozen concentrated orange juice are being 
     traded on the New York Cotton Exchange, or any successor as 
     determined by the Secretary.
       (3) The term ``entered'' means entered or withdrawn from 
     warehouse for consumption, in the customs territory of the 
     United States.
       (4) The term ``frozen concentrated orange juice'' means all 
     products classifiable under subheading 2009.11.00 of the HTS.
       (5) The term ``Secretary'' means the Secretary of 
     Agriculture.
       (6) The term ``trigger price'' means the average daily 
     closing price of the New York Cotton Exchange, or any 
     successor as determined by the Secretary, for the 
     corresponding month during the previous 5-year period, 
     excluding the year with the highest average price for the 
     corresponding month and the year with the lowest average 
     price for the corresponding month.

             PART 2--RELIEF FROM IMPORTS FROM ALL COUNTRIES

     SEC. 311. NAFTA ARTICLE IMPACT IN IMPORT RELIEF CASES UNDER 
                   THE TRADE ACT OF 1974.

       (a) In General.--If, in any investigation initiated under 
     chapter 1 of title II of the Trade Act of 1974, the 
     International Trade Commission makes an affirmative 
     determination (or a determination which the President may 
     treat as an affirmative determination under such chapter by 
     reason of section 330(d) of the Tariff Act of 1930), the 
     International Trade Commission shall also find (and report to 
     the President at the time such injury determination is 
     submitted to the President) whether--
       (1) imports of the article from a NAFTA country, considered 
     individually, account for a substantial share of total 
     imports; and
       (2) imports of the article from a NAFTA country, considered 
     individually or, in exceptional circumstances, imports from 
     NAFTA countries considered collectively, contribute 
     importantly to the serious injury, or threat thereof, caused 
     by imports.
       (b) Factors.--
       (1) Substantial import share.--In determining whether 
     imports from a NAFTA country, considered individually, 
     account for a substantial share of total imports, such 
     imports normally shall not be considered to account for a 
     substantial share of total imports if that country is not 
     among the top 5 suppliers of the article subject to the 
     investigation, measured in terms of import share during the 
     most recent 3-year period.
       (2) Application of ``contribute importantly'' standard.--In 
     determining whether imports from a NAFTA country or countries 
     contribute importantly to the serious injury, or threat 
     thereof, the International Trade Commission shall consider 
     such factors as the change in the import share of the NAFTA 
     country or countries, and the level and change in the level 
     of imports of such country or countries. In applying the 
     preceding sentence, imports from a NAFTA country or countries 
     normally shall not be considered to contribute importantly to 
     serious injury, or the threat thereof, if the growth rate of 
     imports from such country or countries during the period in 
     which an injurious increase in imports occurred is 
     appreciably lower than the growth rate of total imports from 
     all sources over the same period.
       (c) Definition.--For purposes of this section and section 
     312(a), the term ``contribute importantly'' refers to an 
     important cause, but not necessarily the most important 
     cause.

     SEC. 312. PRESIDENTIAL ACTION REGARDING NAFTA IMPORTS.

       (a) In General.--In determining whether to take action 
     under chapter 1 of title II of the Trade Act of 1974 with 
     respect to imports from a NAFTA country, the President shall 
     determine whether--
       (1) imports from such country, considered individually, 
     account for a substantial share of total imports; or
       (2) imports from a NAFTA country, considered individually, 
     or in exceptional circumstances imports from NAFTA countries 
     considered collectively, contribute importantly to the 
     serious injury, or threat thereof, found by the International 
     Trade Commission.
       (b) Exclusion of NAFTA Imports.--In determining the nature 
     and extent of action to be taken under chapter 1 of title II 
     of the Trade Act of 1974, the President shall exclude from 
     such action imports from a NAFTA country if the President 
     makes a negative determination under subsection (a)(1) or (2) 
     with respect to imports from such country.
       (c) Action After Exclusion of NAFTA Country Imports.--
       (1) In general.--If the President, under subsection (b), 
     excludes imports from a NAFTA country or countries from 
     action under chapter 1 of title II of the Trade Act of 1974 
     but thereafter determines that a surge in imports from that 
     country or countries is undermining the effectiveness of the 
     action--
       (A) the President may take appropriate action under such 
     chapter 1 to include those imports in the action; and
       (B) any entity that is representative of an industry for 
     which such action is being taken may request the 
     International Trade Commission to conduct an investigation of 
     the surge in such imports.
       (2) Investigation.--Upon receiving a request under 
     paragraph (1)(B), the International Trade Commission shall 
     conduct an investigation to determine whether a surge in such 
     imports undermines the effectiveness of the action. The 
     International Trade Commission shall submit the findings of 
     its investigation to the President no later than 30 days 
     after the request is received by the International Trade 
     Commission.
       (3) Definition.--For purposes of this subsection, the term 
     ``surge'' means a significant increase in imports over the 
     trend for a recent representative base period.
       (d) Condition Applicable to Quantitative Restrictions.--Any 
     action taken under this section proclaiming a quantitative 
     restriction shall permit the importation of a quantity or 
     value of the article which is not less than the quantity or 
     value of such article imported into the United States during 
     the most recent period that is representative of imports of 
     such article, with allowance for reasonable growth.

                       PART 3--GENERAL PROVISIONS

     SEC. 315. PROVISIONAL RELIEF.

       Section 202(d) of the Trade Act of 1974 (19 U.S.C. 2252(d)) 
     is amended--
       (1) in paragraph (1)(A) by inserting ``or citrus product'' 
     after ``agricultural product'' each place it appears;
       (2) in the text of paragraph (1)(C) that appears before 
     subclauses (I) and (II)--
       (A) by inserting ``or citrus product'' after ``agricultural 
     product'' each place it appears, and
       (B) by inserting ``or citrus product'' after ``perishable 
     product'';
       (3) by redesignating subparagraphs (A) and (B) of paragraph 
     (5) as subparagraphs (B) and (C); and
       (4) by inserting a new subparagraph (A) in paragraph (5) to 
     read as follows:
       ``(A) The term `citrus product' means any processed oranges 
     or grapefruit, or any orange or grapefruit juice, including 
     concentrate.''.

     SEC. 316. MONITORING.

       For purposes of expediting an investigation concerning 
     provisional relief under this subtitle or section 202 of the 
     Trade Act of 1974 regarding--
       (1) fresh or chilled tomatoes provided for in subheading 
     0702.00.00 of the HTS; and
       (2) fresh or chilled peppers, other than chili peppers 
     provided for in subheading 0709.60.00 of the HTS;

     the International Trade Commission, until January 1, 2009, 
     shall monitor imports of such goods as if proper requests for 
     such monitoring had been made under subsection 
     202(d)(1)(C)(i) of such section 202. At the request of the 
     International Trade Commission, the Secretary of Agriculture 
     and the Commissioner of Customs shall provide to the 
     International Trade Commission information relevant to the 
     monitoring carried out under this section.

     SEC. 317. PROCEDURES CONCERNING THE CONDUCT OF INTERNATIONAL 
                   TRADE COMMISSION INVESTIGATIONS.

       (a) Procedures and Rules.--The International Trade 
     Commission shall adopt such procedures and rules and 
     regulations as are necessary to bring its procedures into 
     conformity with chapter 8 of the Agreement.
       (b) Conforming Amendment.--Section 202(a) of the Trade Act 
     of 1974 is amended by adding at the end thereof the 
     following:
       ``(8) The procedures concerning the release of confidential 
     business information set forth in section 332(g) of the 
     Tariff Act of 1930 shall apply with respect to information 
     received by the Commission in the course of investigations 
     conducted under this chapter and part 1 of title III of the 
     North American Free Trade Agreement Implementation Act.''.

     SEC. 318. EFFECTIVE DATE.

       Except as provided in section 308(b), the provisions of 
     this subtitle take effect on the date the Agreement enters 
     into force with respect to the United States.
                        Subtitle B--Agriculture

     SEC. 321. AGRICULTURE.

       (a) Meat Import Act of 1979.--The Meat Import Act of 1979 
     (19 U.S.C. 2253 note) is amended--
       (1) in subsection (b)--
       (A) by striking the last sentence in paragraph (2),
       (B) by redesignating paragraph (3) as paragraph (4) and 
     inserting after paragraph (2) the following new paragraph:
       ``(3) The term `meat articles' does not include any article 
     described in paragraph (2) that--
       ``(A) originates in a NAFTA country (as determined in 
     accordance with section 202 of the NAFTA Act), or
       ``(B) originates in Canada (as determined in accordance 
     with section 202 of the United States-Canada Free-Trade 
     Agreement Implementation Act of 1988) during such time as the 
     United States-Canada Free-Trade Agreement is in force with 
     respect to, and the United States applies such Agreement to, 
     Canada.''; and
       (C) by inserting after paragraph (4) (as redesignated by 
     subparagraph (B) of this paragraph) the following new 
     paragraphs:
       ``(5) The term `NAFTA Act' means the North American Free 
     Trade Agreement Implementation Act.
       ``(6) The term `NAFTA country' has the meaning given such 
     term in section 2(4) of the NAFTA Act.'';
       (2) in subsection (f)(1), by striking the end period and 
     inserting ``, except that the President may exclude any such 
     article originating in a NAFTA country (as determined in 
     accordance with section 202 of the NAFTA Act) or, if 
     paragraph (3)(B) applies, any such article originating in 
     Canada as determined in accordance with such paragraph 
     (3)(B).''; and
       (3) in subsection (i), by inserting ``and Mexico'' after 
     ``Canada'' each place it appears.
       (b) Section 22 of the Agricultural Adjustment Act.--
       (1) In general.--The President may, pursuant to article 309 
     and Annex 703.2 of the Agreement, exempt from any 
     quantitative limitation or fee imposed pursuant to section 22 
     of the Agricultural Adjustment Act (7 U.S.C. 624), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, any article which originates in Mexico, if Mexico is 
     a NAFTA country.
       (2) Qualification of articles.--The determination of 
     whether an article originates in Mexico shall be made in 
     accordance with section 202, except that operations performed 
     in, or materials obtained from, any country other than the 
     United States or Mexico shall be treated as if performed in 
     or obtained from a country other than a NAFTA country.
       (c) Tariff Rate Quotas.--In implementing the tariff rate 
     quotas set out in the United States Schedule to Annex 302.2 
     of the Agreement, the President shall take such action as may 
     be necessary to ensure that imports of agricultural goods do 
     not disrupt the orderly marketing of commodities in the 
     United States.
       (d) Peanuts.--
       (1) Effect of the agreement.--
       (A) In general.--Nothing in the Agreement or this Act 
     reduces or eliminates--
       (i) any penalty required under section 358e(d) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a(d)); or
       (ii) any requirement under Marketing Agreement No. 146, 
     Regulating the Quality of Domestically Produced Peanuts, on 
     peanuts in the domestic market, pursuant to section 108B(f) 
     of the Agricultural Act of 1949 (7 U.S.C. 1445c-3(f)).
       (B) Reentry of exported peanuts.--Paragraph (6) of section 
     358e(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1359a(d)(6)) is amended to read as follows:
       ``(6) Reentry of exported peanuts.--
       ``(A) Penalty.--If any additional peanuts exported by a 
     handler are reentered into the United States in commercial 
     quantities as determined by the Secretary, the importer of 
     the peanuts shall be subject to a penalty at a rate equal to 
     140 percent of the loan level for quota peanuts on the 
     quantity of peanuts reentered.
       ``(B) Records.--Each person, firm, or handler who imports 
     peanuts into the United States shall maintain such records 
     and documents as are required by the Secretary to ensure 
     compliance with this subsection.''.
       (2) Consultations on imports.--It is the sense of Congress 
     that the United States should request consultations in the 
     Working Group on Emergency Action, established in the 
     Understanding Between the Parties to the North American Free 
     Trade Agreement Concerning Chapter Eight--Emergency Action, 
     if imports of peanuts exceed the in-quota quantity under a 
     tariff rate quota set out in the United States Schedule to 
     Annex 302.2 of the Agreement concerning whether--
       (A) the increased imports of peanuts constitute a 
     substantial cause of, or contribute importantly to, serious 
     injury, or threat of serious injury, to the domestic peanut 
     industry; and
       (B) recourse under Chapter Eight of the Agreement or 
     Article XIX of the General Agreement on Tariffs and Trade is 
     appropriate.
       (e) Fresh Fruits, Vegetables, and Cut Flowers.--
       (1) In general.--The Secretary of Agriculture shall collect 
     and compile the information specified under paragraph (3), if 
     reasonably available, from appropriate Federal departments 
     and agencies and the relevant counterpart ministries of the 
     Government of Mexico.
       (2) Designation of an office.--The Secretary of Agriculture 
     shall designate an office within the United States Department 
     of Agriculture to be responsible for maintaining and 
     disseminating, in a timely manner, the data accumulated for 
     verifying citrus, fruit, vegetable, and cut flower trade 
     between the United States and Mexico. The information shall 
     be made available to the public and the NAFTA Agriculture 
     Committee Working Groups.
       (3) Information collected.--The information to be 
     collected, if reasonably available, includes--
       (A) monthly fresh fruit, fresh vegetable, fresh citrus, and 
     processed citrus product import and export data;
       (B) monthly citrus juice production and export data;
       (C) data on inspections of shipments of citrus, vegetables, 
     and cut flowers entering the United States from Mexico; and
       (D) in the case of fruits, vegetables, and cut flowers 
     entering the United States from Mexico, data regarding--
       (i) planted and harvested acreage; and
       (ii) wholesale prices, quality, and grades.
       (f) End-Use Certificates.--
       (1) In general.--The Secretary of Agriculture (referred to 
     in this subsection as the ``Secretary'') shall implement, in 
     coordination with the Commissioner of Customs, a program 
     requiring that end-use certificates be included in the 
     documentation covering the entry into, or the withdrawal from 
     a warehouse for consumption in, the customs territory of the 
     United States--
       (A) of any wheat that is a product of any foreign country 
     or instrumentality that requires, as of the effective date of 
     this subsection, end-use certificates for imports of wheat 
     that is a product of the United States (referred to in this 
     subsection as ``United States-produced wheat''); and
       (B) of any barley that is a product of any foreign country 
     or instrumentality that requires, as of the effective date of 
     this subsection, end-use certificates for imports of barley 
     that is a product of the United States (referred to in this 
     subsection as ``United States-produced barley'').
       (2) Regulations.--The Secretary shall prescribe by 
     regulation such requirements regarding the information to be 
     included in end-use certificates as may be necessary and 
     appropriate to carry out this subsection.
       (3) Producer protection determination.--At any time after 
     the effective date of the requirements established under 
     paragraph (1), the Secretary may, subject to paragraph (5), 
     suspend the requirements when making a determination, after 
     consultation with domestic producers, that the program 
     implemented under this subsection has directly resulted in--
       (A) the reduction of income to the United States producers 
     of agricultural commodities; or
       (B) the reduction of the competitiveness of United States 
     agricultural commodities in the world export markets.
       (4) Suspension of requirements.--
       (A) Wheat.--If a foreign country or instrumentality that 
     requires end-use certificates for imports of United States-
     produced wheat as of the effective date of the requirement 
     under paragraph (1)(A) eliminates the requirement, the 
     Secretary shall suspend the requirement under paragraph 
     (1)(A) beginning 30 calendar days after suspension by the 
     foreign country or instrumentality.
       (B) Barley.--If a foreign country or instrumentality that 
     requires end-use certificates for imports of United States-
     produced barley as of the effective date of the requirement 
     under paragraph (1)(B) eliminates the requirement, the 
     Secretary shall suspend the requirement under paragraph 
     (1)(B) beginning 30 calendar days after suspension by the 
     foreign country or instrumentality.
       (5) Report to congress.--The Secretary shall not suspend 
     the requirements established under paragraph (1) under 
     circumstances identified in paragraph (3) before the 
     Secretary submits a report to Congress detailing the 
     determination made under paragraph (3) and the reasons for 
     making the determination.
       (6) Compliance.--It shall be a violation of section 1001 of 
     title 18, United States Code, for a person to engage in fraud 
     or knowingly violate this subsection or a regulation 
     implementing this subsection.
       (7) Effective date.--This subsection shall become effective 
     on the date that is 120 days after the date of enactment of 
     this Act.
       (g) Agricultural Fellowship Program.--Section 1542(d) of 
     the Food, Agriculture, Conservation, and Trade Act of 1990 
     (Public Law 101-624; 7 U.S.C. 5622 note) is amended by adding 
     at the end the following new paragraph:
       ``(3) Agricultural fellowships for nafta countries.--
       ``(A) In general.--The Secretary shall grant fellowships to 
     individuals from countries that are parties to the North 
     American Free Trade Agreement (referred to in this paragraph 
     as `NAFTA') to study agriculture in the United States, and to 
     individuals in the United States to study agriculture in 
     other NAFTA countries.
       ``(B) Purpose.--The purpose of fellowships granted under 
     this paragraph is--
       ``(i) to allow the recipients to expand their knowledge and 
     understanding of agricultural systems and practices in other 
     NAFTA countries;
       ``(ii) to facilitate the improvement of agricultural 
     systems in NAFTA countries; and
       ``(iii) to establish and expand agricultural trade linkages 
     between the United States and other NAFTA countries.
       ``(C) Eligible recipients.--The Secretary may provide 
     fellowships under this paragraph to agricultural producers 
     and consultants, government officials, and other individuals 
     from the private and public sectors.
       ``(D) Acceptance of gifts.--The Secretary may accept money, 
     funds, property, and services of every kind by gift, devise, 
     bequest, grant, or otherwise, and may in any manner, dispose 
     of all of the holdings and use the receipts generated from 
     the disposition to carry out this paragraph. Receipts under 
     this paragraph shall remain available until expended.
       ``(E) Authorization of appropriation.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this paragraph.''.
       (h) Assistance for Affected Farmworkers.--
       (1) In general.--Subject to paragraph (3), if at any time 
     the Secretary of Agriculture determines that the 
     implementation of the Agreement has caused low-income migrant 
     or seasonal farmworkers to lose income, the Secretary may 
     make available grants, not to exceed $20,000,000 for any 
     fiscal year, to public agencies or private organizations with 
     tax-exempt status under section 501(c)(3) of the Internal 
     Revenue Code of 1986, that have experience in providing 
     emergency services to low-income migrant or seasonal 
     farmworkers. Emergency services to be provided with 
     assistance received under this subsection may include such 
     types of assistance as the Secretary determines to be 
     necessary and appropriate.
       (2) Definition.--As used in this subsection, the term 
     ``low-income migrant or seasonal farmworker'' shall have the 
     same meaning as provided in section 2281(b) of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (42 U.S.C. 
     5177a(b)).
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated $20,000,000 for each fiscal year to carry 
     out this subsection.
       (i) Biennial Report on Effects of the Agreement on American 
     Agriculture.--
       (1) In general.--The Secretary of Agriculture shall prepare 
     a biennial report on the effects of the Agreement on United 
     States producers of agricultural commodities and on rural 
     communities located in the United States.
       (2) Contents of report.--The report required under this 
     subsection shall include--
       (A) an assessment of the effects of implementing the 
     Agreement on the various agricultural commodities affected by 
     the Agreement, on a commodity-by-commodity basis;
       (B) an assessment of the effects of implementing the 
     Agreement on investments made in United States agriculture 
     and on rural communities located in the United States;
       (C) an assessment of the effects of implementing the 
     Agreement on employment in United States agriculture, 
     including any gains or losses of jobs in businesses directly 
     or indirectly related to United States agriculture; and
       (D) such other information and data as the Secretary 
     determines appropriate.
       (3) Submission of report.--The Secretary shall furnish the 
     report required under this subsection to the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate and to the 
     Committee on Agriculture of the House of Representatives. The 
     report shall be due every 2 years and shall be submitted by 
     March 1 of the year in which the report is due. The first 
     report shall be due by March 1, 1997, and the final report 
     shall be due by March 1, 2011.
                   Subtitle C--Intellectual Property

     SEC. 331. TREATMENT OF INVENTIVE ACTIVITY.

       Section 104 of title 35, United States Code, is amended to 
     read as follows:

     ``Sec. 104. Invention made abroad

       ``(a) In General.--In proceedings in the Patent and 
     Trademark Office, in the courts, and before any other 
     competent authority, an applicant for a patent, or a 
     patentee, may not establish a date of invention by reference 
     to knowledge or use thereof, or other activity with respect 
     thereto, in a foreign country other than a NAFTA country, 
     except as provided in sections 119 and 365 of this title. 
     Where an invention was made by a person, civil or military, 
     while domiciled in the United States or a NAFTA country and 
     serving in any other country in connection with operations by 
     or on behalf of the United States or a NAFTA country, the 
     person shall be entitled to the same rights of priority in 
     the United States with respect to such invention as if such 
     invention had been made in the United States or a NAFTA 
     country. To the extent that any information in a NAFTA 
     country concerning knowledge, use, or other activity relevant 
     to proving or disproving a date of invention has not been 
     made available for use in a proceeding in the Office, a 
     court, or any other competent authority to the same extent as 
     such information could be made available in the United 
     States, the Commissioner, court, or such other authority 
     shall draw appropriate inferences, or take other action 
     permitted by statute, rule, or regulation, in favor of the 
     party that requested the information in the proceeding.
       ``(b) Definition.--As used in this section, the term `NAFTA 
     country' has the meaning given that term in section 2(4) of 
     the North American Free Trade Agreement Implementation 
     Act.''.

     SEC. 332. RENTAL RIGHTS IN SOUND RECORDINGS.

       Section 4 of the Record Rental Amendment of 1984 (17 U.S.C. 
     109 note) is amended by striking out subsection (c).

     SEC. 333. NONREGISTRABILITY OF MISLEADING GEOGRAPHIC 
                   INDICATIONS.

       (a) Marks Not Registrable on the Principal Register.--
     Section 2 of the Act entitled ``An Act to provide for the 
     registration and protection of trademarks used in commerce, 
     to carry out the provisions of certain international 
     conventions, and for other purposes'', approved July 5, 1946, 
     commonly referred to as the Trademark Act of 1946 (15 U.S.C. 
     1052(e)), is amended--
       (1) by amending subsection (e) to read as follows:
       ``(e) Consists of a mark which (1) when used on or in 
     connection with the goods of the applicant is merely 
     descriptive or deceptively misdescriptive of them, (2) when 
     used on or in connection with the goods of the applicant is 
     primarily geographically descriptive of them, except as 
     indications of regional origin may be registrable under 
     section 4, (3) when used on or in connection with the goods 
     of the applicant is primarily geographically deceptively 
     misdescriptive of them, or (4) is primarily merely a 
     surname.''; and
       (2) in subsection (f)--
       (A) by striking out ``and (d)'' and inserting ``(d), and 
     (e)(3)''; and
       (B) by adding at the end the following new sentence: 
     ``Nothing in this section shall prevent the registration of a 
     mark which, when used on or in connection with the goods of 
     the applicant, is primarily geographically deceptively 
     misdescriptive of them, and which became distinctive of the 
     applicant's goods in commerce before the date of the 
     enactment of the North American Free Trade Agreement 
     Implementation Act.''.
       (b) Supplemental Register.--Section 23(a) of the Trademark 
     Act of 1946 (15 U.S.C. 1091(a)) is amended--
       (1) by striking out ``and (d)'' and inserting ``(d), and 
     (e)(3)''; and
       (2) by adding at the end the following new sentence: 
     ``Nothing in this section shall prevent the registration on 
     the supplemental register of a mark, capable of 
     distinguishing the applicant's goods or services and not 
     registrable on the principal register under this Act, that is 
     declared to be unregistrable under section 2(e)(3), if such 
     mark has been in lawful use in commerce by the owner thereof, 
     on or in connection with any goods or services, since before 
     the date of the enactment of the North American Free Trade 
     Agreement Implementation Act.''.

     SEC. 334. MOTION PICTURES IN THE PUBLIC DOMAIN.

       (a) In General.--Chapter 1 of title 17, United States Code, 
     is amended by inserting after section 104 the following new 
     section:

     ``Sec. 104A. Copyright in certain motion pictures

       ``(a) Restoration of Copyright.--Subject to subsections (b) 
     and (c)--
       ``(1) any motion picture that is first fixed or published 
     in the territory of a NAFTA country as defined in section 
     2(4) of the North American Free Trade Agreement 
     Implementation Act to which Annex 1705.7 of the North 
     American Free Trade Agreement applies, and
       ``(2) any work included in such motion picture that is 
     first fixed in or published with such motion picture,

     that entered the public domain in the United States because 
     it was first published on or after January 1, 1978, and 
     before March 1, 1989, without the notice required by section 
     401, 402, or 403 of this title, the absence of which has not 
     been excused by the operation of section 405 of this title, 
     as such sections were in effect during that period, shall 
     have copyright protection under this title for the remainder 
     of the term of copyright protection to which it would have 
     been entitled in the United States had it been published with 
     such notice.
       ``(b) Effective Date of Protection.--The protection 
     provided under subsection (a) shall become effective, with 
     respect to any motion picture or work included in such motion 
     picture meeting the criteria of that subsection, 1 year after 
     the date on which the North American Free Trade Agreement 
     enters into force with respect to, and the United States 
     applies the Agreement to, the country in whose territory the 
     motion picture was first fixed or published if, before the 
     end of that 1-year period, the copyright owner in the motion 
     picture or work files with the Copyright Office a statement 
     of intent to have copyright protection restored under 
     subsection (a). The Copyright Office shall publish in the 
     Federal Register promptly after that effective date a list of 
     motion pictures, and works included in such motion pictures, 
     for which protection is provided under subsection (a).
       ``(c) Use of Previously Owned Copies.--A national or 
     domiciliary of the United States who, before the date of the 
     enactment of the North American Free Trade Agreement 
     Implementation Act, made or acquired copies of a motion 
     picture, or other work included in such motion picture, that 
     is subject to protection under subsection (a), may sell or 
     distribute such copies or continue to perform publicly such 
     motion picture and other work without liability for such 
     sale, distribution, or performance, for a period of 1 year 
     after the date on which the list of motion pictures, and 
     works included in such motion pictures, that are subject to 
     protection under subsection (a) is published in the Federal 
     Register under subsection (b).''.
       (b) Conforming Amendment.--The table of sections at the 
     beginning of chapter 1 of title 17, United States Code, is 
     amended by inserting after the item relating to section 104 
     the following new item:

``104A. Copyright in certain motion pictures.''.

     SEC. 335. EFFECTIVE DATES.

       (a) in General.--Subject to subsections (b) and (c), the 
     amendments made by this subtitle take effect on the date the 
     Agreement enters into force with respect to the United 
     States.
       (b) Section 331.--The amendments made by section 331 shall 
     apply to all patent applications that are filed on or after 
     the date of the enactment of this Act: Provided, That an 
     applicant for a patent, or a patentee, may not establish a 
     date of invention by reference to knowledge or use thereof, 
     or other activity with respect thereto, in a NAFTA country, 
     except as provided in sections 119 and 365 of title 35, 
     United States Code, that is earlier than the date of the 
     enactment of this Act.
       (c) Section 333.--The amendments made by section 333 shall 
     apply only to trademark applications filed on or after the 
     date of the enactment of this Act.
            Subtitle D--Temporary Entry of Business Persons

     SEC. 341. TEMPORARY ENTRY.

       (a) Nonimmigrant Traders and Investors.--Upon a basis of 
     reciprocity secured by the Agreement, an alien who is a 
     citizen of Canada or Mexico, and the spouse and children of 
     any such alien if accompanying or following to join such 
     alien, may, if otherwise eligible for a visa and if otherwise 
     admissible into the United States under the Immigration and 
     Nationality Act (8 U.S.C. 1101 et seq.), be considered to be 
     classifiable as a nonimmigrant under section 101(a)(15)(E) of 
     such Act (8 U.S.C. 1101(a)(15)(E)) if entering solely for a 
     purpose specified in Section B of Annex 1603 of the 
     Agreement, but only if any such purpose shall have been 
     specified in such Annex on the date of entry into force of 
     the Agreement. For purposes of this section, the term 
     ``citizen of Mexico'' means ``citizen'' as defined in Annex 
     1608 of the Agreement.
       (b) Nonimmigrant Professionals and Annual Numerical 
     Limit.--Section 214 of the Immigration and Nationality Act (8 
     U.S.C. 1184) is amended by redesignating subsection (e) as 
     paragraph (1) of subsection (e) and adding after such 
     paragraph (1), as redesignated, the following new paragraphs:
       ``(2) An alien who is a citizen of Canada or Mexico, and 
     the spouse and children of any such alien if accompanying or 
     following to join such alien, who seeks to enter the United 
     States under and pursuant to the provisions of Section D of 
     Annex 1603 of the North American Free Trade Agreement (in 
     this subsection referred to as `NAFTA') to engage in business 
     activities at a professional level as provided for in such 
     Annex, may be admitted for such purpose under regulations of 
     the Attorney General promulgated after consultation with the 
     Secretaries of State and Labor. For purposes of this Act, 
     including the issuance of entry documents and the application 
     of subsection (b), such alien shall be treated as if seeking 
     classification, or classifiable, as a nonimmigrant under 
     section 101(a)(15). The admission of an alien who is a 
     citizen of Mexico shall be subject to paragraphs (3), (4), 
     and (5). For purposes of this paragraph and paragraphs (3), 
     (4), and (5), the term `citizen of Mexico' means `citizen' as 
     defined in Annex 1608 of NAFTA.
       ``(3) The Attorney General shall establish an annual 
     numerical limit on admissions under paragraph (2) of aliens 
     who are citizens of Mexico, as set forth in Appendix 1603.D.4 
     of Annex 1603 of the NAFTA. Subject to paragraph (4), the 
     annual numerical limit--
       ``(A) beginning with the second year that NAFTA is in 
     force, may be increased in accordance with the provisions of 
     paragraph 5(a) of Section D of such Annex, and
       ``(B) shall cease to apply as provided for in paragraph 3 
     of such Appendix.
       ``(4) The annual numerical limit referred to in paragraph 
     (3) may be increased or shall cease to apply (other than by 
     operation of paragraph 3 of such Appendix) only if--
       ``(A) the President has obtained advice regarding the 
     proposed action from the appropriate advisory committees 
     established under section 135 of the Trade Act of 1974 (19 
     U.S.C. 2155);
       ``(B) the President has submitted a report to the Committee 
     on the Judiciary of the Senate and the Committee on the 
     Judiciary of the House of Representatives that sets forth--
       ``(i) the action proposed to be taken and the reasons 
     therefor, and
       ``(ii) the advice obtained under subparagraph (A);
       ``(C) a period of at least 60 calendar days that begins on 
     the first day on which the President has met the requirements 
     of subparagraphs (A) and (B) with respect to such action has 
     expired; and
       ``(D) the President has consulted with such committees 
     regarding the proposed action during the period referred to 
     in subparagraph (C).
       ``(5) During the period that the provisions of Appendix 
     1603.D.4 of Annex 1603 of the NAFTA apply, the entry of an 
     alien who is a citizen of Mexico under and pursuant to the 
     provisions of Section D of Annex 1603 of NAFTA shall be 
     subject to the attestation requirement of section 212(m), in 
     the case of a registered nurse, or the application 
     requirement of section 212(n), in the case of all other 
     professions set out in Appendix 1603.D.1 of Annex 1603 of 
     NAFTA, and the petition requirement of subsection (c), to the 
     extent and in the manner prescribed in regulations 
     promulgated by the Secretary of Labor, with respect to 
     sections 212(m) and 212(n), and the Attorney General, with 
     respect to subsection (c).''.
       (c) Labor Disputes.--Section 214 of the Immigration and 
     Nationality Act (8 U.S.C. 1184) is amended by adding at the 
     end the following new subsection:
       ``(j) Notwithstanding any other provision of this Act, an 
     alien who is a citizen of Canada or Mexico who seeks to enter 
     the United States under and pursuant to the provisions of 
     Section B, Section C, or Section D of Annex 1603 of the North 
     American Free Trade Agreement, shall not be classified as a 
     nonimmigrant under such provisions if there is in progress a 
     strike or lockout in the course of a labor dispute in the 
     occupational classification at the place or intended place of 
     employment, unless such alien establishes, pursuant to 
     regulations promulgated by the Attorney General, that the 
     alien's entry will not affect adversely the settlement of the 
     strike or lockout or the employment of any person who is 
     involved in the strike or lockout. Notice of a determination 
     under this subsection shall be given as may be required by 
     paragraph 3 of article 1603 of such Agreement. For purposes 
     of this subsection, the term `citizen of Mexico' means 
     `citizen' as defined in Annex 1608 of such Agreement.''.

     SEC. 342. EFFECTIVE DATE.

       The provisions of this subtitle take effect on the date the 
     Agreement enters into force with respect to the United 
     States.
                         Subtitle E--Standards

                     PART 1--STANDARDS AND MEASURES

     SEC. 351. STANDARDS AND SANITARY AND PHYTOSANITARY MEASURES.

       (a) In General.--Title IV of the Trade Agreements Act of 
     1979 (19 U.S.C. 2531 et seq.) is amended by inserting at the 
     end the following new subtitle:
  ``Subtitle E--Standards and Measures Under the North American Free 
                            Trade Agreement

            ``CHAPTER 1--SANITARY AND PHYTOSANITARY MEASURES

     ``SEC. 461. GENERAL.

       ``Nothing in this chapter may be construed--
       ``(1) to prohibit a Federal agency or State agency from 
     engaging in activity related to sanitary or phytosanitary 
     measures to protect human, animal, or plant life or health; 
     or
       ``(2) to limit the authority of a Federal agency or State 
     agency to determine the level of protection of human, animal, 
     or plant life or health the agency considers appropriate.

     ``SEC. 462. INQUIRY POINT.

       ``The standards information center maintained under section 
     414 shall, in addition to the functions specified therein, 
     make available to the public relevant documents, at such 
     reasonable fees as the Secretary of Commerce may prescribe, 
     and information regarding--
       ``(1) any sanitary or phytosanitary measure of general 
     application, including any control or inspection procedure or 
     approval procedure proposed, adopted, or maintained by a 
     Federal or State agency;
       ``(2) the procedures of a Federal or State agency for risk 
     assessment, and factors the agency considers in conducting 
     the assessment and in establishing the levels of protection 
     that the agency considers appropriate;
       ``(3) the membership and participation of the Federal 
     Government and State governments in international and 
     regional sanitary and phytosanitary organizations and 
     systems, and in bilateral and multilateral arrangements 
     regarding sanitary and phytosanitary measures, and the 
     provisions of those systems and arrangements; and
       ``(4) the location of notices of the type required under 
     article 719 of the NAFTA, or where the information contained 
     in such notices can be obtained.

     ``SEC. 463. CHAPTER DEFINITIONS.

       ``Notwithstanding section 451, for purposes of this 
     chapter--
       ``(1) Animal.--The term `animal' includes fish, bees, and 
     wild fauna.
       ``(2) Approval procedure.--The term `approval procedure' 
     means any registration, notification, or other mandatory 
     administrative procedure for--
       ``(A) approving the use of an additive for a stated purpose 
     or under stated conditions, or
       ``(B) establishing a tolerance for a stated purpose or 
     under stated conditions for a contaminant,

     in a food, beverage, or feedstuff prior to permitting the use 
     of the additive or the marketing of a food, beverage, or 
     feedstuff containing the additive or contaminant.
       ``(3) Contaminant.--The term `contaminant' includes 
     pesticide and veterinary drug residues and extraneous matter.
       ``(4) Control or inspection procedure.--The term `control 
     or inspection procedure' means any procedure used, directly 
     or indirectly, to determine that a sanitary or phytosanitary 
     measure is fulfilled, including sampling, testing, 
     inspection, evaluation, verification, monitoring, auditing, 
     assurance of conformity, accreditation, registration, 
     certification, or other procedure involving the physical 
     examination of a good, of the packaging of a good, or of the 
     equipment or facilities directly related to production, 
     marketing, or use of a good, but does not mean an approval 
     procedure.
       ``(5) Plant.--The term `plant' includes wild flora.
       ``(6) Risk assessment.--The term `risk assessment' means an 
     evaluation of--
       ``(A) the potential for the introduction, establishment or 
     spread of a pest or disease and associated biological and 
     economic consequences; or
       ``(B) the potential for adverse effects on human or animal 
     life or health arising from the presence of an additive, 
     contaminant, toxin or disease-causing organism in a food, 
     beverage, or feedstuff.
       ``(7) Sanitary or phytosanitary measure.--
       ``(A) In general.--The term `sanitary or phytosanitary 
     measure' means a measure to--
       ``(i) protect animal or plant life or health in the United 
     States from risks arising from the introduction, 
     establishment, or spread of a pest or disease;
       ``(ii) protect human or animal life or health in the United 
     States from risks arising from the presence of an additive, 
     contaminant, toxin, or disease-causing organism in a food, 
     beverage, or feedstuff;
       ``(iii) protect human life or health in the United States 
     from risks arising from a disease-causing organism or pest 
     carried by an animal or plant, or a product thereof; or
       ``(iv) prevent or limit other damage in the United States 
     arising from the introduction, establishment, or spread of a 
     pest.
       ``(B) Form.--The form of a sanitary or phytosanitary 
     measure includes--
       ``(i) end product criteria;
       ``(ii) a product-related processing or production method;
       ``(iii) a testing, inspection, certification, or approval 
     procedure;
       ``(iv) a relevant statistical method;
       ``(v) a sampling procedure;
       ``(vi) a method of risk assessment;
       ``(vii) a packaging and labeling requirement directly 
     related to food safety; and
       ``(viii) a quarantine treatment, such as a relevant 
     requirement associated with the transportation of animals or 
     plants or with material necessary for their survival during 
     transportation.

                ``CHAPTER 2--STANDARDS-RELATED MEASURES

     ``SEC. 471. GENERAL.

       ``(a) No Bar To Engaging in Standards Activity.--Nothing in 
     this chapter shall be construed--
       ``(1) to prohibit a Federal agency from engaging in 
     activity related to standards-related measures, including any 
     such measure relating to safety, the protection of human, 
     animal, or plant life or health, the environment or 
     consumers; or
       ``(2) to limit the authority of a Federal agency to 
     determine the level it considers appropriate of safety or of 
     protection of human, animal, or plant life or health, the 
     environment or consumers.
       ``(b) Exclusion.--This chapter does not apply to--
       ``(1) technical specifications prepared by a Federal agency 
     for production or consumption requirements of the agency; or
       ``(2) sanitary or phytosanitary measures under chapter 1.

     ``SEC. 472. INQUIRY POINT.

       ``The standards information center maintained under section 
     414 shall, in addition to the functions specified therein, 
     make available to the public relevant documents, at such 
     reasonable fees as the Secretary of Commerce may prescribe, 
     and information regarding--
       ``(1) the membership and participation of the Federal 
     Government, State governments, and relevant nongovernmental 
     bodies in the United States in international and regional 
     standardizing bodies and conformity assessment systems, and 
     in bilateral and multilateral arrangements regarding 
     standards-related measures, and the provisions of those 
     systems and arrangements;
       ``(2) the location of notices of the type required under 
     article 909 of the NAFTA, or where the information contained 
     in such notice can be obtained; and
       ``(3) the Federal agency procedures for assessment of risk, 
     and factors the agency considers in conducting the assessment 
     and establishing the levels of protection that the agency 
     considers appropriate.

     ``SEC. 473. CHAPTER DEFINITIONS.

       ``Notwithstanding section 451, for purposes of this 
     chapter--
       ``(1) Approval procedure.--The term `approval procedure' 
     means any registration, notification, or other mandatory 
     administrative procedure for granting permission for a good 
     or service to be produced, marketed, or used for a stated 
     purpose or under stated conditions.
       ``(2) Conformity assessment procedure.--The term 
     `conformity assessment procedure' means any procedure used, 
     directly or indirectly, to determine that a technical 
     regulation or standard is fulfilled, including sampling, 
     testing, inspection, evaluation, verification, monitoring, 
     auditing, assurance of conformity, accreditation, 
     registration, or approval used for such a purpose, but does 
     not mean an approval procedure.
       ``(3) Objective.--The term `objective' includes--
       ``(A) safety,
       ``(B) protection of human, animal, or plant life or health, 
     the environment or consumers, including matters relating to 
     quality and identifiability of goods or services, and
       ``(C) sustainable development,
     but does not include the protection of domestic production.
       ``(4) Service.--The term `service' means a land 
     transportation service or a telecommunications service.
       ``(5) Standard.--The term `standard' means--
       ``(A) characteristics for a good or a service,
       ``(B) characteristics, rules, or guidelines for--
       ``(i) processes or production methods relating to such 
     good, or
       ``(ii) operating methods relating to such service, and
       ``(C) provisions specifying terminology, symbols, 
     packaging, marking, or labelling for--
       ``(i) a good or its related process or production methods, 
     or
       ``(ii) a service or its related operating methods,

     for common and repeated use, including explanatory and other 
     related provisions set out in a document approved by a 
     standardizing body, with which compliance is not mandatory.
       ``(6) Standards-related measure.--The term `standards-
     related measure' means a standard, technical regulation, or 
     conformity assessment procedure.
       ``(7) Technical regulation.--The term `technical 
     regulation' means--
       ``(A) characteristics or their related processes and 
     production methods for a good,
       ``(B) characteristics for a service or its related 
     operating methods, or
       ``(C) provisions specifying terminology, symbols, 
     packaging, marking, or labelling for--
       ``(i) a good or its related process or production method, 
     or
       ``(ii) a service or its related operating method,

     set out in a document, including applicable administrative, 
     explanatory, and other related provisions, with which 
     compliance is mandatory.
       ``(8) Telecommunications service.--The term 
     `telecommunications service' means a service provided by 
     means of the transmission and reception of signals by any 
     electromagnetic means, but does not mean the cable, 
     broadcast, or other electromagnetic distribution of radio or 
     television programming to the public generally.

                   ``CHAPTER 3--SUBTITLE DEFINITIONS

     ``SEC. 481. DEFINITIONS.

       ``Notwithstanding section 451, for purposes of this 
     subtitle--
       ``(1) NAFTA.--The term `NAFTA' means the North American 
     Free Trade Agreement.
       ``(2) State.--The term `State' means any of the several 
     States, the District of Columbia, and the Commonwealth of 
     Puerto Rico.''.
       (b) Technical Amendments.--
       (1) Definition of trade representative.--Section 451(12) of 
     the Trade Agreements Act of 1979 is amended to read as 
     follows:
       ``(12) Trade representative.--The term `Trade 
     Representative' means the United States Trade 
     Representative.''.
       (2) Conforming amendments.--Title IV of the Trade Agreement 
     Act of 1979 is further amended--
       (A) by striking out ``Special Representative'' each place 
     it appears and inserting ``Trade Representative''; and
       (B) in the section heading to section 411, by striking out 
     ``SPECIAL REPRESENTATIVE'' and inserting ``TRADE 
     REPRESENTATIVE''.

     SEC. 352. TRANSPORTATION.

       No regulation issued by the Secretary of Transportation 
     implementing a recommendation of the Land Transportation 
     Standards Subcommittee established under article 913(5)(a)(i) 
     of the Agreement may take effect before the date 90 days 
     after the date of issuance.

                     PART 2--AGRICULTURAL STANDARDS

     SEC. 361. AGRICULTURAL TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Federal Seed Act.--Section 302(e)(1) of the Federal 
     Seed Act (7 U.S.C. 1582(e)(1)) is amended by inserting ``or 
     Mexico'' after ``Canada''.
       (b) Importation of Animals.--The first sentence of section 
     6 of the Act of August 30, 1890 (26 Stat. 416, chapter 839; 
     21 U.S.C. 104), is amended by striking ``: Provided'' and all 
     that follows through the period at the end of the sentence 
     and inserting ``, except that the Secretary of Agriculture, 
     in accordance with such regulations as the Secretary may 
     issue, may (1) permit the importation of cattle, sheep, or 
     other ruminants, and swine, from Canada or Mexico, and (2) 
     permit the importation from the British Virgin Islands into 
     the Virgin Islands of the United States, for slaughter only, 
     of cattle that have been infested with or exposed to ticks on 
     being freed from the ticks.''.
       (c) Inspection of Animals.--Section 10 of the Act of August 
     30, 1890 (26 Stat. 417, chapter 839; 21 U.S.C. 105), is 
     amended--
       (1) by inserting above ``Sec. 10.'' the following new 
     section heading:

     ``SEC. 10. INSPECTION OF ANIMALS.'';

       (2) by striking ``Sec. 10. That the Secretary of 
     Agriculture shall'' and inserting ``(a) In General.--Except 
     as provided in subsection (b), the Secretary of Agriculture 
     shall''; and
       (3) by adding at the end the following new subsection:
       ``(b) Exception.--The Secretary of Agriculture, in 
     accordance with such regulations as the Secretary may issue, 
     may waive any provision of subsection (a) in the case of 
     shipments between the United States and Canada or Mexico.''.
       (d) Disease-Free Countries or Regions.--
       (1) Tariff act of 1930.--Section 306 of the Tariff Act of 
     1930 (19 U.S.C. 1306) is amended--
       (A) in subsection (a), by striking ``Rinderpest and Foot-
     and-Mouth Disease.--If the Secretary of Agriculture'' and 
     inserting ``In General.--Except as provided in subsection 
     (b), if the Secretary of Agriculture''; and
       (B) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Exception.--The Secretary of Agriculture may permit, 
     subject to such terms and conditions as the Secretary 
     determines appropriate, the importation of cattle, sheep, 
     other ruminants, or swine (including embryos of the animals), 
     or the fresh, chilled, or frozen meat of the animals, from a 
     region if the Secretary determines that the region from which 
     the animal or meat originated is, and is likely to remain, 
     free from rinderpest and foot-and-mouth disease.''.
       (2) Honeybee act.--The first section of the Act of August 
     31, 1922 (commonly known as the ``Honeybee Act'') (42 Stat. 
     833, chapter 301; 7 U.S.C. 281), is amended--
       (A) in subsection (a)--
       (i) by striking ``, or'' at the end of paragraph (1) and 
     inserting a semicolon;
       (ii) by striking the period at the end of paragraph (2) and 
     inserting ``; or''; and
       (iii) by adding at the end the following new paragraph:
       ``(3) from Canada or Mexico, subject to such terms and 
     conditions as the Secretary of Agriculture determines 
     appropriate, if the Secretary determines that the region of 
     Canada or Mexico from which the honeybees originated is, and 
     is likely to remain, free of diseases or parasites harmful to 
     honeybees, and undesirable species or subspecies of 
     honeybees.''; and
       (B) in subsection (b)--
       (i) by inserting ``(1)'' after ``imported into the United 
     States only from''; and
       (ii) by inserting before the period the following: ``, or 
     (2) Canada or Mexico, if the Secretary of Agriculture 
     determines that the region of Canada or Mexico from which the 
     imports originate is, and is likely to remain, free of 
     undesirable species or subspecies of honeybees''.
       (e) Poultry Products Inspection Act.--Section 17(d) of the 
     Poultry Products Inspection Act (21 U.S.C. 466(d)) is 
     amended--
       (1) in paragraph (1), by inserting after ``Notwithstanding 
     any other provision of law,'' the following: ``except as 
     provided in paragraph (2),'';
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2)(A) Notwithstanding any other provision of law, all 
     poultry, or parts or products of poultry, capable of use as 
     human food offered for importation into the United States 
     from Canada and Mexico shall--
       ``(i) comply with paragraph (1); or
       ``(ii)(I) be subject to inspection, sanitary, quality, 
     species verification, and residue standards that are 
     equivalent to United States standards; and
       ``(II) have been processed in facilities and under 
     conditions that meet standards that are equivalent to United 
     States standards.
       ``(B) The Secretary may treat as equivalent to a United 
     States standard a standard of Canada or Mexico described in 
     subparagraph (A)(ii) if the exporting country provides the 
     Secretary with scientific evidence or other information, in 
     accordance with risk assessment methodologies agreed to by 
     the Secretary and the exporting country, to demonstrate that 
     the standard of the exporting country achieves the level of 
     protection that the Secretary considers appropriate.
       ``(C) The Secretary may--
       ``(i) determine, on a scientific basis, that the standard 
     of the exporting country does not achieve the level of 
     protection that the Secretary considers appropriate; and
       ``(ii) provide the basis for the determination in writing 
     to the exporting country on request.''.
       (f) Federal Meat Inspection Act.--Section 20(e) of the 
     Federal Meat Inspection Act (21 U.S.C. 620(e)) is amended--
       (1) by striking ``not be limited to--'' and inserting ``not 
     be limited to the following:'';
       (2) by striking paragraph (1);
       (3) by redesignating paragraphs (2) through (6) as 
     paragraphs (3) through (7), respectively;
       (4) by inserting after ``not be limited to the following:'' 
     (as amended by paragraph (1)) the following new paragraphs:
       ``(1)(A) Subject to subparagraphs (B) and (C), a 
     certification by the Secretary that foreign plants in Canada 
     and Mexico that export carcasses or meat or meat products 
     referred to in subsection (a) have complied with paragraph 
     (2) or with requirements that are equivalent to United States 
     requirements with regard to all inspection and building 
     construction standards, and all other provisions of this Act 
     and regulations issued under this Act.
       ``(B) Subject to subparagraph (C), the Secretary may treat 
     as equivalent to a United States requirement a requirement 
     described in subparagraph (A) if the exporting country 
     provides the Secretary with scientific evidence or other 
     information, in accordance with risk assessment methodologies 
     agreed to by the Secretary and the exporting country, to 
     demonstrate that the requirement or standard of the exporting 
     country achieves the level of protection that the Secretary 
     considers appropriate.
       ``(C) The Secretary may--
       ``(i) determine, on a scientific basis, that a requirement 
     of an exporting country does not achieve the level of 
     protection that the Secretary considers appropriate; and
       ``(ii) provide the basis for the determination to the 
     exporting country in writing on request.
       ``(2) A certification by the Secretary that, except as 
     provided in paragraph (1), foreign plants that export 
     carcasses or meat or meat products referred to in subsection 
     (a) have complied with requirements that are at least equal 
     to all inspection and building construction standards and all 
     other provisions of this Act and regulations issued under 
     this Act.'';
       (5) in paragraphs (3) through (7) (as redesignated by 
     paragraph (3)), by striking ``the'' the first place it 
     appears in each paragraph and inserting ``The'';
       (6) in paragraphs (3) through (5) (as so redesignated), by 
     striking the semicolon at the end of each paragraph and 
     inserting a period; and
       (7) in paragraph (6) (as so redesignated), by striking ``; 
     and'' at the end and inserting a period.
       (g) Peanut Butter and Peanut Paste.--
       (1) In general.--Except as provided in paragraph (2), all 
     peanut butter and peanut paste in the United States domestic 
     market shall be processed from peanuts that meet the quality 
     standards established for peanuts under Marketing Agreement 
     No. 146.
       (2) Imports.--Peanut butter and peanut paste imported into 
     the United States shall comply with paragraph (1) or with 
     sanitary measures that achieve at least the same level of 
     sanitary protection.
       (h) Animal Health Biocontainment Facility.--
       (1) Grant for construction.--The Secretary of Agriculture 
     shall make a grant to a land grant college or university 
     described in paragraph (2) for the construction of a facility 
     at the college or university for the conduct of research in 
     animal health, disease-transmitting insects, and toxic 
     chemicals that requires the use of biocontainment facilities 
     and equipment. The facility to be constructed with the grant 
     shall be known as the ``Southwest Regional Animal Health 
     Biocontainment Facility''.
       (2) Grant recipient described.--To be eligible for the 
     grant under paragraph (1), a land grant college or university 
     must be--
       (A) located in a State adjacent to the international border 
     with Mexico; and
       (B) determined by the Secretary of Agriculture to have an 
     established program in animal health research and education 
     and to have a collaborative relationship with one or more 
     colleges of veterinary medicine or universities located in 
     Mexico.
       (3) Activities of the facility.--The facility constructed 
     using the grant made under paragraph (1) shall be used for 
     conducting the following activities:
       (A) The biocontainment facility shall offer the ability to 
     organize multidisciplinary international teams working on 
     basic and applied research on diagnostic method development 
     and disease control strategies, including development of 
     vaccines.
       (B) The biocontainment facility shall support research that 
     will improve the scientific basis for regulatory activities, 
     decreasing the need for new regulatory programs and enhancing 
     international trade.
       (C) The biocontainment facility shall allow academic 
     institutions, governmental agencies, and the private sector 
     to conduct research in basic and applied research biology, 
     epidemiology, pathogenesis, host response, and diagnostic 
     methods, on disease agents that threaten the livestock 
     industries of the United States and Mexico.
       (D) The biocontainment facility may be used to support 
     research involving food safety, toxicology, environmental 
     pollutants, radioisotopes, recombinant microorganisms, and 
     selected naturally resistant or transgenic animals.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated for each fiscal year such sums as are 
     necessary to carry out this subsection.
       (i) Reports on Inspection of Imported Meat, Poultry, Other 
     Foods, Animals, and Plants.--
       (1) Definitions.--As used in this subsection:
       (A) Imports.--The term ``imports'' means any meat, poultry, 
     other food, animal, or plant that is imported into the United 
     States in commercially significant quantities.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (2) In general.--In consultation with representatives of 
     other appropriate agencies, the Secretary shall prepare an 
     annual report on the impact of the Agreement on the 
     inspection of imports.
       (3) Contents of reports.--The report required under this 
     subsection shall, to the maximum extent practicable, include 
     a description of--
       (A) the quantity or, with respect to the Customs Service, 
     the number of shipments, of imports from a NAFTA country that 
     are inspected at the borders of the United States with Canada 
     and Mexico during the prior year;
       (B) any change in the level or types of inspections of 
     imports in each NAFTA country during the prior year;
       (C) in any case in which the Secretary has determined that 
     the inspection system of another NAFTA country is equivalent 
     to the inspection system of the United States, the reasons 
     supporting the determination of the Secretary;
       (D) the incidence of violations of inspection requirements 
     by imports from NAFTA countries during the prior year--
       (i) at the borders of the United States with Mexico or 
     Canada; or
       (ii) at the last point of inspection in a NAFTA country 
     prior to shipment to the United States if the agency accepts 
     inspection in that country;
       (E) the incidence of violations of inspection requirements 
     of imports to the United States from Mexico or Canada prior 
     to the implementation of the Agreement;
       (F) any additional cost associated with maintaining an 
     adequate inspection system of imports as a result of the 
     implementation of the Agreement;
       (G) any incidence of transshipment of imports--
       (i) that originate in a country other than a NAFTA country;
       (ii) that are shipped to the United States through a NAFTA 
     country during the prior year; and
       (iii) that are incorrectly represented by the importer to 
     qualify for preferential treatment under the Agreement;
       (H) the quantity and results of any monitoring by the 
     United States of equivalent inspection systems of imports in 
     other NAFTA countries during the prior year;
       (I) the use by other NAFTA countries of sanitary and 
     phytosanitary measures (as defined in the Agreement) to limit 
     exports of United States meat, poultry, other foods, animals, 
     and plants to the countries during the prior year; and
       (J) any other information the Secretary determines to be 
     appropriate.
       (4) Frequency of reports.--The Secretary shall submit--
       (A) the initial report required under this subsection not 
     later than January 31, 1995; and
       (B) an annual report required under this subsection not 
     later than 1 year after the date of the submission of the 
     initial report and the end of each 1-year period thereafter 
     through calendar year 2004.
       (5) Report to congress.--The Secretary shall prepare and 
     submit the report required under this subsection to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
               Subtitle F--Corporate Average Fuel Economy

     SEC. 371. CORPORATE AVERAGE FUEL ECONOMY.

       (a) In General.--Section 503(b)(2) of the Motor Vehicle 
     Information and Cost Savings Act (15 U.S.C. 2003(b)(2)) is 
     amended by adding at the end the following new subparagraph:
       ``(G)(i) In accordance with the schedule set out in clause 
     (ii), an automobile shall be considered domestically 
     manufactured in a model year if at least 75 percent of the 
     cost to the manufacturer of the automobile is attributable to 
     value added in the United States, Canada, or Mexico, unless 
     the assembly of the automobile is completed in Canada or 
     Mexico and the automobile is not imported into the United 
     States prior to the expiration of 30 days following the end 
     of that model year.
       ``(ii) Clause (i) shall apply to all automobiles 
     manufactured by a manufacturer and sold in the United States, 
     wherever assembled, in accordance with the following 
     schedule:
       ``(I) With respect to a manufacturer that initiated the 
     assembly of automobiles in Mexico before model year 1992, the 
     manufacturer may elect, at any time between January 1, 1997, 
     and January 1, 2004, to have clause (i) apply to all 
     automobiles it manufactures, beginning with the model year 
     commencing after the date of such election.
       ``(II) With respect to a manufacturer initiating the 
     assembly of automobiles in Mexico after model year 1991, 
     clause (i) shall apply to all automobiles it manufactures, 
     beginning with the model year commencing after January 1, 
     1994, or the model year commencing after the date that the 
     manufacturer initiates the assembly of automobiles in Mexico, 
     whichever is later.
       ``(III) With respect to a manufacturer not described by 
     subclause (I) or (II) assembling automobiles in the United 
     States or Canada but not in Mexico, the manufacturer may 
     elect, at any time between January 1, 1997, and January 1, 
     2004, to have clause (i) apply to all automobiles it 
     manufactures, beginning with the model year commencing after 
     the date of such election, except that if such manufacturer 
     initiates the assembly of automobiles in Mexico before making 
     such election, this subclause shall not apply and the 
     manufacturer shall be subject to clause (II).
       ``(IV) With respect to a manufacturer not assembling 
     automobiles in the United States, Canada, or Mexico, clause 
     (i) shall apply to all automobiles it manufactures, beginning 
     with the model year commencing after January 1, 1994.
       ``(V) With respect to a manufacturer authorized to make an 
     election under subclause (I) or (III) which has not made that 
     election within the specified period, clause (i) shall apply 
     to all automobiles it manufactures, beginning with the model 
     year commencing after January 1, 2004.
       ``(iii) The Secretary shall prescribe reasonable procedures 
     for elections under this subparagraph, and the EPA 
     Administrator may prescribe rules for purposes of carrying 
     out this subparagraph.''.
       (b) Conforming Amendments.--The first sentence of section 
     503(b)(2)(E) of the Motor Vehicle Information and Cost 
     Savings Act (15 U.S.C. 2003(b)(2)(E)) is amended--
       (1) by striking ``An'' and inserting ``Except as provided 
     in subparagraph (G), an'', and
       (2) in the last sentence, by striking ``this subparagraph'' 
     and inserting ``this subparagraph and subparagraph (G)''.
                   Subtitle G--Government Procurement

     SEC. 381. GOVERNMENT PROCUREMENT.

       (a) In General.--Section 301 of the Trade Agreements Act of 
     1979 (19 U.S.C. 2511) is amended--
       (1) in subsection (a) by striking ``The President'' and 
     inserting ``Subject to subsection (f) of this section, the 
     President'';
       (2) by inserting ``or the North American Free Trade 
     Agreement'' after ``the Agreement'' in paragraph (1) of 
     subsection (b); and
       (3) by adding at the end the following new subsections:
       ``(e) Procurement Procedures by Certain Federal Agencies.--
     Notwithstanding any other provision of law, the President may 
     direct any agency of the United States listed in Annex 
     1001.1a-2 of the North American Free Trade Agreement to 
     procure eligible products in compliance with the procedural 
     provisions of chapter 10 of such Agreement.
       ``(f) Small Business and Minority Preferences.--The 
     authority of the President under subsection (a) of this 
     section to waive any law, regulation, procedure, or practice 
     regarding Government procurement does not authorize the 
     waiver of any small business or minority preference.''.
       (b) Reciprocal Competitive Procurement Practices.--Section 
     302(a) of such Act (19 U.S.C. 2512(a)) is amended by striking 
     ``would otherwise be eligible products'' in paragraph (1) and 
     inserting ``are products covered under the Agreement for 
     procurement by the United States''.
       (c) Definition of Eligible Product.--Section 308(4)(A) of 
     such Act (19 U.S.C. 2518(4)(A)) is amended to read as 
     follows:
       ``(A) In general.--The term `eligible product' means, with 
     respect to any foreign country or instrumentality that is--
       ``(i) a party to the Agreement, a product or service of 
     that country or instrumentality which is covered under the 
     Agreement for procurement by the United States; or
       ``(ii) a party to the North American Free Trade Agreement, 
     a product or service of that country or instrumentality which 
     is covered under the North American Free Trade Agreement for 
     procurement by the United States.''.
       (d) Conforming Amendments.--Section 401 of the Rural 
     Electrification Act of 1938 (7 U.S.C. 903 note) is amended by 
     inserting ``, Mexico, or Canada'' after ``the United States'' 
     each place it appears.
       (e) Effective Date.--The provisions of this subtitle take 
     effect on the date the Agreement enters into force with 
     respect to the United States.
  TITLE IV--DISPUTE SETTLEMENT IN ANTIDUMPING AND COUNTERVAILING DUTY 
                                 CASES
 Subtitle A--Organizational, Administrative, and Procedural Provisions 
      Regarding the Implementation of Chapter 19 of the Agreement

     SEC. 401. REFERENCES IN SUBTITLE.

       Any reference in this subtitle to an Annex, chapter, or 
     article shall be considered to be a reference to the 
     respective Annex, chapter, or article of the Agreement.

     SEC. 402. ORGANIZATIONAL AND ADMINISTRATIVE PROVISIONS.

       (a) Criteria for Selection of Individuals to Serve on 
     Panels and Committees.--
       (1) In general.--The selection of individuals under this 
     section for--
       (A) placement on lists prepared by the interagency group 
     under subsection (c)(2)(B)(i) and (ii);
       (B) placement on preliminary candidate lists under 
     subsection (c)(3)(A);
       (C) placement on final candidate lists under subsection 
     (c)(4)(A);
       (D) placement by the Trade Representative on the rosters 
     described in paragraph 1 of Annex 1901.2 and paragraph 1 of 
     Annex 1904.13; and
       (E) appointment by the Trade Representative for service on 
     the panels and committees convened under chapter 19;
     shall be made on the basis of the criteria provided in 
     paragraph 1 of Annex 1901.2 and paragraph 1 of Annex 1904.13 
     and shall be made without regard to political affiliation.
       (2) Additional criteria for roster placements and 
     appointments under paragraph 1 of annex 1901.2.--Rosters 
     described in paragraph 1 of Annex 1901.2 shall include, to 
     the fullest extent practicable, judges and former judges who 
     meet the criteria referred to in paragraph (1). The Trade 
     Representative shall, subject to subsection (b), appoint 
     judges to binational panels convened under chapter 19, 
     extraordinary challenge committees convened under chapter 19, 
     and special committees established under article 1905, where 
     such judges offer and are available to serve and such service 
     is authorized by the chief judge of the court on which they 
     sit.
       (b) Selection of Certain Judges to Serve on Panels and 
     Committees.--
       (1) Applicability.--This subsection applies only with 
     respect to the selection of individuals for binational panels 
     convened under chapter 19, extraordinary challenge committees 
     convened under chapter 19, and special committees established 
     under article 1905, who are judges of courts created under 
     article III of the Constitution of the United States.
       (2) Consultation with chief judges.--The Trade 
     Representative shall consult, from time to time, with the 
     chief judges of the Federal judicial circuits regarding the 
     interest in, and availability for, participation in 
     binational panels, extraordinary challenge committees, and 
     special committees, of judges within their respective 
     circuits. If the chief judge of a Federal judicial circuit 
     determines that it is appropriate for one or more judges 
     within that circuit to be included on a roster described in 
     subsection (a)(1)(D), the chief judge shall identify all such 
     judges for the Chief Justice of the United States who may, 
     upon his or her approval, submit the names of such judges to 
     the Trade Representative. The Trade Representative shall 
     include the names of such judges on the roster.
       (3) Submission of lists to congress.--The Trade 
     Representative shall submit to the Committee on the Judiciary 
     and the Committee on Ways and Means of the House of 
     Representatives and to the Committee on Finance and the 
     Committee on the Judiciary of the Senate a list of all judges 
     included on a roster under paragraph (2). Such list shall be 
     submitted at the same time as the final candidate lists are 
     submitted under subsection (c)(4)(A) and the final forms of 
     amendments are submitted under subsection (c)(4)(C)(iv).
       (4) Appointment of judges to panels or committees.--At such 
     time as the Trade Representative proposes to appoint a judge 
     described in paragraph (1) to a binational panel, an 
     extraordinary challenge committee, or a special committee, 
     the Trade Representative shall consult with that judge in 
     order to ascertain whether the judge is available for such 
     appointment.
       (c) Selection of Other Candidates.--
       (1) Applicability.--This subsection applies only with 
     respect to the selection of individuals for binational panels 
     convened under chapter 19, extraordinary challenge committees 
     convened under chapter 19, and special committees established 
     under article 1905, other than those individuals to whom 
     subsection (b) applies.
       (2) Interagency group.--
       (A) Establishment.--There is established within the 
     interagency organization established under section 242 of the 
     Trade Expansion Act of 1962 (19 U.S.C. 1872) an interagency 
     group which shall--
       (i) be chaired by the Trade Representative; and
       (ii) consist of such officers (or the designees thereof) of 
     the United States Government as the Trade Representative 
     considers appropriate.
       (B) Functions.--The interagency group established under 
     subparagraph (A) shall, in a manner consistent with chapter 
     19--
       (i) prepare by January 3 of each calendar year--

       (I) a list of individuals who are qualified to serve as 
     members of binational panels convened under chapter 19; and
       (II) a list of individuals who are qualified to serve on 
     extraordinary challenge committees convened under chapter 19 
     and special committees established under article 1905;

       (ii) if the Trade Representative makes a request under 
     paragraph (4)(C)(i) with respect to a final candidate list 
     during any calendar year, prepare by July 1 of such calendar 
     year a list of those individuals who are qualified to be 
     added to that final candidate list;
       (iii) exercise oversight of the administration of the 
     United States Section that is authorized to be established 
     under section 105; and
       (iv) make recommendations to the Trade Representative 
     regarding the convening of extraordinary challenge committees 
     and special committees under chapter 19.
       (3) Preliminary candidate lists.--
       (A) In general.--The Trade Representative shall select 
     individuals from the respective lists prepared by the 
     interagency group under paragraph (2)(B)(i) for placement 
     on--
       (i) a preliminary candidate list of individuals eligible to 
     serve as members of binational panels under Annex 1901.2; and
       (ii) a preliminary candidate list of individuals eligible 
     for selection as members of extraordinary challenge 
     committees under Annex 1904.13 and special committees under 
     article 1905.
       (B) Submission of lists to congressional committees.--
       (i) In general.--No later than January 3 of each calendar 
     year, 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 (hereafter in this section 
     referred to as the ``appropriate Congressional Committees'') 
     the preliminary candidate lists of those individuals selected 
     by the Trade Representative under subparagraph (A) to be 
     candidates eligible to serve on panels or committees convened 
     pursuant to chapter 19 during the 1-year period beginning on 
     April 1 of such calendar year.
       (ii) Additional information.--At the time the candidate 
     lists are submitted under clause (i), the Trade 
     Representative shall submit for each individual on the list a 
     statement of professional qualifications.
       (C) Consultation.--Upon submission of the preliminary 
     candidate lists under subparagraph (B) to the appropriate 
     Congressional Committees, the Trade Representative shall 
     consult with such Committees with regard to the individuals 
     included on the preliminary candidate lists.
       (D) Revision of lists.--The Trade Representative may add 
     and delete individuals from the preliminary candidate lists 
     submitted under subparagraph (B) after consultation with the 
     appropriate Congressional Committees regarding the additions 
     and deletions. The Trade Representative shall provide to the 
     appropriate Congressional Committees written notice of any 
     addition or deletion of an individual from the preliminary 
     candidate lists, along with the information described in 
     subparagraph (B)(ii) with respect to any proposed addition.
       (4) Final candidate lists.--
       (A) Submission of lists to congressional committees.--No 
     later than March 31 of each calendar year, the Trade 
     Representative shall submit to the appropriate Congressional 
     Committees the final candidate lists of those individuals 
     selected by the Trade Representative to be candidates 
     eligible to serve on panels and committees convened under 
     chapter 19 during the 1-year period beginning on April 1 of 
     such calendar year. An individual may be included on a final 
     candidate list only if such individual was included in the 
     preliminary candidate list or if written notice of the 
     addition of such individual to the preliminary candidate list 
     was submitted to the appropriate Congressional Committees at 
     least 15 days before the date on which that final candidate 
     list is submitted to such Committees under this subparagraph.
       (B) Finality of lists.--Except as provided in subparagraph 
     (C), no additions may be made to the final candidate lists 
     after the final candidate lists are submitted to the 
     appropriate Congressional Committees under subparagraph (A).
       (C) Amendment of lists.--
       (i) In general.--If, after the Trade Representative has 
     submitted the final candidate lists to the appropriate 
     Congressional Committees under subparagraph (A) for a 
     calendar year and before July 1 of such calendar year, the 
     Trade Representative determines that additional individuals 
     need to be added to a final candidate list, the Trade 
     Representative shall--

       (I) request the interagency group established under 
     paragraph (2)(A) to prepare a list of individuals who are 
     qualified to be added to such candidate list;
       (II) select individuals from the list prepared by the 
     interagency group under paragraph (2)(B)(ii) to be included 
     in a proposed amendment to such final candidate list; and

       (III) by no later than July 1 of such calendar year, submit 
     to the appropriate Congressional Committees the proposed 
     amendments to such final candidate list developed by the 
     Trade Representative under subclause (II), along with the 
     information described in paragraph (3)(B)(ii).

       (ii) Consultation with congressional committees.--Upon 
     submission of a proposed amendment under clause (i)(III) to 
     the appropriate Congressional Committees, the Trade 
     Representative shall consult with the appropriate 
     Congressional Committees with regard to the individuals 
     included in the proposed amendment.
       (iii) Adjustment of proposed amendment.--The Trade 
     Representative may add and delete individuals from any 
     proposed amendment submitted under clause (i)(III) after 
     consulting with the appropriate Congressional Committees with 
     regard to the additions and deletions. The Trade 
     Representative shall provide to the appropriate Congressional 
     Committees written notice of any addition or deletion of an 
     individual from the proposed amendment.
       (iv) Final amendment.--

       (I) In general.--If the Trade Representative submits under 
     clause (i)(III) in any calendar year a proposed amendment to 
     a final candidate list, the Trade Representative shall, no 
     later than September 30 of such calendar year, submit to the 
     appropriate Congressional Committees the final form of such 
     amendment. On October 1 of such calendar year, such amendment 
     shall take effect and, subject to subclause (II), the 
     individuals included in the final form of such amendment 
     shall be added to the final candidate list.
       (II) Inclusion of individuals.--An individual may be 
     included in the final form of an amendment submitted under 
     subclause (I) only if such individual was included in the 
     proposed form of such amendment or if written notice of the 
     addition of such individual to the proposed form of such 
     amendment was submitted to the appropriate Congressional 
     Committees at least 15 days before the date on which the 
     final form of such amendment is submitted to such Committees 
     under subclause (I).
       (III) Eligibility for service.--Individuals added to a 
     final candidate list under subclause (I) shall be eligible to 
     serve on panels or committees convened under chapter 19 
     during the 6-month period beginning on October 1 of the 
     calendar year in which such addition occurs.
       (IV) Finality of amendment.--No additions may be made to 
     the final form of an amendment described in subclause (I) 
     after the final form of such amendment is submitted to the 
     appropriate Congressional Committees under subclause (I).

       (5) Treatment of responses.--For purposes of applying 
     section 1001 of title 18, United States Code, the written or 
     oral responses of individuals to inquiries of the interagency 
     group established under paragraph (2)(A) or of the Trade 
     Representative regarding their personal and professional 
     qualifications, and financial and other relevant interests, 
     that bear on their suitability for the placements and 
     appointments described in subsection (a)(1), shall be treated 
     as matters within the jurisdiction of an agency of the United 
     States.
       (d) Selection and Appointment.--
       (1) Authority of trade representative.--The Trade 
     Representative is the only officer of the United States 
     Government authorized to act on behalf of the United States 
     Government in making any selection or appointment of an 
     individual to--
       (A) the rosters described in paragraph 1 of Annex 1901.2 
     and paragraph 1 of Annex 1904.13; or
       (B) the panels or committees convened under chapter 19;
     that is to be made solely or jointly by the United States 
     Government under the terms of the Agreement.
       (2) Restrictions on selection and appointment.--Except as 
     provided in paragraph (3)--
       (A) the Trade Representative may--
       (i) select an individual for placement on the rosters 
     described in paragraph 1 of Annex 1901.2 and paragraph 1 of 
     Annex 1904.13 during the 1-year period beginning on April 1 
     of any calendar year;
       (ii) appoint an individual to serve as one of those members 
     of any panel or committee convened under chapter 19 during 
     such 1-year period who, under the terms of the Agreement, are 
     to be appointed solely by the United States Government; or
       (iii) act to make a joint appointment with the Government 
     of a NAFTA country, under the terms of the Agreement, of any 
     individual who is a citizen or national of the United States 
     to serve as any other member of such a panel or committee;
     only if such individual is on the appropriate final candidate 
     list that was submitted to the appropriate Congressional 
     Committees under subsection (c)(4)(A) during such calendar 
     year or on such list as it may be amended under subsection 
     (c)(4)(C)(iv)(I), or on the list submitted under subsection 
     (b)(3) to the congressional committees referred to in such 
     subsection; and
       (B) no individual may--
       (i) be selected by the United States Government for 
     placement on the rosters described in paragraph 1 of Annex 
     1901.2 and paragraph 1 of Annex 1904.13; or
       (ii) be appointed solely or jointly by the United States 
     Government to serve as a member of a panel or committee 
     convened under chapter 19;

     during the 1-year period beginning on April 1 of any calendar 
     year for which the Trade Representative has not met the 
     requirements of subsection (a), and of subsection (b) or (c) 
     (as the case may be).
       (3) Exceptions.--Notwithstanding subsection (c)(3) (other 
     than subparagraph (B)), (c)(4), or paragraph (2)(A) of this 
     subsection, individuals included on the preliminary candidate 
     lists submitted to the appropriate Congressional Committees 
     under subsection (c)(3)(B) may--
       (A) be selected by the Trade Representative for placement 
     on the rosters described in paragraph 1 of Annex 1901.2 and 
     paragraph 1 of Annex 1904.13 during the 3-month period 
     beginning on the date on which the Agreement enters into 
     force with respect to the United States; and
       (B) be appointed solely or jointly by the Trade 
     Representative under the terms of the Agreement to serve as 
     members of panels or committees that are convened under 
     chapter 19 during such 3-month period.
       (e) Transition.--If the Agreement enters into force between 
     the United States and a NAFTA country after January 3, 1994, 
     the provisions of subsection (c) shall be applied with 
     respect to the calendar year in which such entering into 
     force occurs--
       (1) by substituting ``the date that is 30 days after the 
     date on which the Agreement enters into force with respect to 
     the United States'' for ``January 3 of each calendar year'' 
     in subsections (c)(2)(B)(i) and (c)(3)(B)(i); and
       (2) by substituting ``the date that is 3 months after the 
     date on which the Agreement enters into force with respect to 
     the United States'' for ``March 31 of each calendar year'' in 
     subsection (c)(4)(A).
       (f) Immunity.--With the exception of acts described in 
     section 777(f)(3) of the Tariff Act of 1930 (19 U.S.C. 
     1677f(f)(3)), individuals serving on panels or committees 
     convened pursuant to chapter 19, and individuals designated 
     to assist the individuals serving on such panels or 
     committees, shall be immune from suit and legal process 
     relating to acts performed by such individuals in their 
     official capacity and within the scope of their functions as 
     such panelists or committee members or assistants to such 
     panelists or committee members.
       (g) Regulations.--The administering authority under title 
     VII of the Tariff Act of 1930, the International Trade 
     Commission, and the Trade Representative may promulgate such 
     regulations as are necessary or appropriate to carry out 
     actions in order to implement their respective 
     responsibilities under chapter 19. Initial regulations to 
     carry out such functions shall be issued before the date on 
     which the Agreement enters into force with respect to the 
     United States.
       (h) Report to Congress.--At such time as the final 
     candidate lists are submitted under subsection (c)(4)(A) and 
     the final forms of amendments are submitted under subsection 
     (c)(4)(C)(iv), the Trade Representative shall submit to the 
     Committee on the Judiciary and the Committee on Ways and 
     Means of the House of Representatives, and to the Committee 
     on Finance and the Committee on the Judiciary of the Senate, 
     a report regarding the efforts made to secure the 
     participation of judges and former judges on binational 
     panels, extraordinary challenge committees, and special 
     committees established under chapter 19.

     SEC. 403. TESTIMONY AND PRODUCTION OF PAPERS IN EXTRAORDINARY 
                   CHALLENGES.

       (a) Authority of Extraordinary Challenge Committee To 
     Obtain Information.--If an extraordinary challenge committee 
     (hereafter in this section referred to as the ``committee'') 
     is convened under paragraph 13 of article 1904, and the 
     allegations before the committee include a matter referred to 
     in paragraph 13(a)(i) of article 1904, for the purposes of 
     carrying out its functions and duties under Annex 1904.13, 
     the committee--
       (1) shall have access to, and the right to copy, any 
     document, paper, or record pertinent to the subject matter 
     under consideration, in the possession of any individual, 
     partnership, corporation, association, organization, or other 
     entity;
       (2) may summon witnesses, take testimony, and administer 
     oaths;
       (3) may require any individual, partnership, corporation, 
     association, organization, or other entity to produce 
     documents, books, or records relating to the matter in 
     question; and
       (4) may require any individual, partnership, corporation, 
     association, organization, or other entity to furnish in 
     writing, in such detail and in such form as the committee may 
     prescribe, information in its possession pertaining to the 
     matter.

     Any member of the committee may sign subpoenas, and members 
     of the committee, when authorized by the committee, may 
     administer oaths and affirmations, examine witnesses, take 
     testimony, and receive evidence.
       (b) Witnesses and Evidence.--The attendance of witnesses 
     who are authorized to be summoned, and the production of 
     documentary evidence authorized to be ordered, under 
     subsection (a) may be required from any place in the United 
     States at any designated place of hearing. In the case of 
     disobedience to a subpoena authorized under subsection (a), 
     the committee may request the Attorney General of the United 
     States to invoke the aid of any district or territorial court 
     of the United States in requiring the attendance and 
     testimony of witnesses and the production of documentary 
     evidence. Such court, within the jurisdiction of which such 
     inquiry is carried on, may, in case of contumacy or refusal 
     to obey a subpoena issued to any individual, partnership, 
     corporation, association, organization, or other entity, 
     issue an order requiring such individual or entity to appear 
     before the committee, or to produce documentary evidence if 
     so ordered or to give evidence concerning the matter in 
     question. Any failure to obey such order of the court may be 
     punished by such court as a contempt thereof.
       (c) Mandamus.--Any court referred to in subsection (b) 
     shall have jurisdiction to issue writs of mandamus commanding 
     compliance with the provisions of this section or any order 
     of the committee made in pursuance thereof.
       (d) Depositions.--The committee may order testimony to be 
     taken by deposition at any stage of the committee review. 
     Such deposition may be taken before any person designated by 
     the committee and having power to administer oaths. Such 
     testimony shall be reduced to writing by the person taking 
     the deposition, or under the direction of such person, and 
     shall then be subscribed by the deponent. Any individual, 
     partnership, corporation, association, organization, or other 
     entity may be compelled to appear and be deposed and to 
     produce documentary evidence in the same manner as witnesses 
     may be compelled to appear and testify and produce 
     documentary evidence before the committee, as provided in 
     this section.

     SEC. 404. REQUESTS FOR REVIEW OF DETERMINATIONS BY COMPETENT 
                   INVESTIGATING AUTHORITIES OF NAFTA COUNTRIES.

       (a) Definitions.--As used in this section:
       (1) Competent investigating authority.--The term 
     ``competent investigating authority'' means the competent 
     investigating authority, as defined in article 1911, of a 
     NAFTA country.
       (2) United states secretary.--The term ``United States 
     Secretary'' means that officer of the United States referred 
     to in article 1908.
       (b) Requests for Review by the United States.--In the case 
     of a final determination of a competent investigating 
     authority, requests by the United States for binational panel 
     review of such determination under article 1904 shall be made 
     by the United States Secretary.
       (c) Requests for Review by a Person.--In the case of a 
     final determination of a competent investigating authority, a 
     person, within the meaning of paragraph 5 of article 1904, 
     may request a binational panel review of such determination 
     by filing such a request with the United States Secretary 
     within the time limit provided for in paragraph 4 of article 
     1904. The receipt of such request by the United States 
     Secretary shall be deemed to be a request for binational 
     panel review within the meaning of article 1904. The request 
     for such panel review shall be without prejudice to any 
     challenge before a binational panel of the basis for a 
     particular request for review.
       (d) Service of Request for Review.--Whenever binational 
     panel review of a final determination made by a competent 
     investigating authority is requested under this section, the 
     United States Secretary shall serve a copy of the request on 
     all persons who would otherwise be entitled under the law of 
     the importing country to commence proceedings for judicial 
     review of the determination.

     SEC. 405. RULES OF PROCEDURE FOR PANELS AND COMMITTEES.

       (a) Rules of Procedure for Binational Panels.--The 
     administering authority shall prescribe rules, negotiated in 
     accordance with paragraph 14 of article 1904, governing, with 
     respect to binational panel reviews--
       (1) requests for such reviews, complaints, other pleadings, 
     and other papers;
       (2) the amendment, filing, and service of such pleadings 
     and papers;
       (3) the joinder, suspension, and termination of such 
     reviews; and
       (4) other appropriate procedural matters.
       (b) Rules of Procedure for Extraordinary Challenge 
     Committees.--The administering authority shall prescribe 
     rules, negotiated in accordance with paragraph 2 of Annex 
     1904.13, governing the procedures for reviews by 
     extraordinary challenge committees.
       (c) Rules of Procedure for Safeguarding the Panel Review 
     System.--The administering authority shall prescribe rules, 
     negotiated in accordance with Annex 1905.6, governing the 
     procedures for special committees described in such Annex.
       (d) Publication of Rules.--The rules prescribed under 
     subsections (a), (b), and (c) shall be published in the 
     Federal Register.
       (e) Administering Authority.--As used in this section, the 
     term ``administering authority'' has the meaning given such 
     term in section 771(1) of the Tariff Act of 1930 (19 U.S.C. 
     1677(1)).

     SEC. 406. SUBSIDY NEGOTIATIONS.

       In the case of any trade agreement which may be entered 
     into by the President with a NAFTA country, the negotiating 
     objectives of the United States with respect to subsidies 
     shall include--
       (1) achievement of increased discipline on domestic 
     subsidies provided by a foreign government, including--
       (A) the provision of capital, loans, or loan guarantees on 
     terms inconsistent with commercial considerations;
       (B) the provision of goods or services at preferential 
     rates;
       (C) the granting of funds or forgiveness of debt to cover 
     operating losses sustained by a specific industry; and
       (D) the assumption of any costs or expenses of manufacture, 
     production, or distribution;
       (2) achievement of increased discipline on export subsidies 
     provided by a foreign government, particularly with respect 
     to agricultural products; and
       (3) maintenance of effective remedies against subsidized 
     imports, including, where appropriate, countervailing duties.

     SEC. 407. IDENTIFICATION OF INDUSTRIES FACING SUBSIDIZED 
                   IMPORTS.

       (a) Petitions.--Any entity, including a trade association, 
     firm, certified or recognized union, or group of workers, 
     that is representative of a United States industry and has 
     reason to believe--
       (1) that--
       (A) as a result of implementation of provisions of the 
     Agreement, the industry is likely to face increased 
     competition from subsidized imports, from a NAFTA country, 
     with which it directly competes; or
       (B) the industry is likely to face increased competition 
     from subsidized imports with which it directly competes from 
     any other country designated by the President, following 
     consultations with the Congress, as benefiting from a 
     reduction of tariffs or other trade barriers under a trade 
     agreement that enters into force with respect to the United 
     States after January 1, 1994; and
       (2) that the industry is likely to experience a 
     deterioration of its competitive position before more 
     effective rules and disciplines relating to the use of 
     government subsidies have been developed with respect to the 
     country concerned;

     may file with the Trade Representative a petition that such 
     industry be identified under this section.
       (b) Identification of Industry.--Within 90 days after 
     receipt of a petition under subsection (a), the Trade 
     Representative, in consultation with the Secretary of 
     Commerce, shall decide whether to identify the industry on 
     the basis that there is a reasonable likelihood that the 
     industry may face both the subsidization described in 
     subsection (a)(1) and the deterioration described in 
     subsection (a)(2).
       (c) Action After Identification.--At the request of an 
     entity that is representative of an industry identified under 
     subsection (b), the Trade Representative shall--
       (1) compile and make available to the industry information 
     under section 308 of the Trade Act of 1974;
       (2) recommend to the President that an investigation by the 
     International Trade Commission be requested under section 332 
     of the Tariff Act of 1930; or
       (3) take actions described in both paragraphs (1) and (2).

     The industry may request the Trade Representative to take 
     appropriate action to update (as often as annually) any 
     information obtained under paragraph (1) or (2), or both, as 
     the case may be, until an agreement on more effective rules 
     and disciplines relating to government subsidies is reached 
     between the United States and the NAFTA countries.
       (d) Initiation of Action Under Other Law.--
       (1) In general.--The Trade Representative and the Secretary 
     of Commerce shall review information obtained under 
     subsection (c) and consult with the industry identified under 
     subsection (b) with a view to deciding whether any action is 
     appropriate--
       (A) under section 301 of the Trade Act of 1974, including 
     the initiation of an investigation under section 302(c) of 
     that Act (in the case of the Trade Representative); or
       (B) under subtitle A of title VII of the Tariff Act of 
     1930, including the initiation of an investigation under 
     section 702(a) of that Act (in the case of the Secretary of 
     Commerce).
       (2) Criteria for initiation.--In determining whether to 
     initiate any investigation under section 301 of the Trade Act 
     of 1974 or any other trade law, other than title VII of the 
     Tariff Act of 1930, the Trade Representative, after 
     consultation with the Secretary of Commerce--
       (A) shall seek the advice of the advisory committees 
     established under section 135 of the Trade Act of 1974;
       (B) shall consult with the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives;
       (C) shall coordinate with the interagency organization 
     established under section 242 of the Trade Expansion Act of 
     1962; and
       (D) may ask the President to request advice from the 
     International Trade Commission.
       (3) Title iii actions.--In the event an investigation is 
     initiated under section 302(c) of the Trade Act of 1974 as a 
     result of a review under this subsection and the Trade 
     Representative, following such investigation (including any 
     applicable dispute settlement proceedings under the Agreement 
     or any other trade agreement), determines to take action 
     under section 301(a) of such Act, the Trade Representative 
     shall give preference to actions that most directly affect 
     the products that benefit from governmental subsidies and 
     were the subject of the investigation, unless there are no 
     significant imports of such products or the Trade 
     Representative otherwise determines that application of the 
     action to other products would be more effective.
       (e) Effect of Decisions.--Any decision, whether positive or 
     negative, or any action by the Trade Representative or the 
     Secretary of Commerce under this section shall not in any 
     way--
       (1) prejudice the right of any industry to file a petition 
     under any trade law;
       (2) prejudice, affect, or substitute for, any proceeding, 
     investigation, determination, or action by the Secretary of 
     Commerce, the International Trade Commission, or the Trade 
     Representative pursuant to such a petition, or
       (3) prejudice, affect, substitute for, or obviate any 
     proceeding, investigation, or determination under section 301 
     of the Trade Act of 1974, title VII of the Tariff Act of 
     1930, or any other trade law.
       (f) Standing.--Nothing in this section may be construed to 
     alter in any manner the requirements in effect before the 
     date of the enactment of this Act for standing under any law 
     of the United States or to add any additional requirements 
     for standing under any law of the United States.

     SEC. 408. TREATMENT OF AMENDMENTS TO ANTIDUMPING AND 
                   COUNTERVAILING DUTY LAW.

       Any amendment enacted after the Agreement enters into force 
     with respect to the United States that is made to--
       (1) section 303 or title VII of the Tariff Act of 1930, or 
     any successor statute, or
       (2) any other statute which--
       (A) provides for judicial review of final determinations 
     under such section, title, or successor statute, or
       (B) indicates the standard of review to be applied,
     shall apply to goods from a NAFTA country only to the extent 
     specified in the amendment.
            Subtitle B--Conforming Amendments and Provisions

     SEC. 411. JUDICIAL REVIEW IN ANTIDUMPING DUTY AND 
                   COUNTERVAILING DUTY CASES.

       Section 516A of the Tariff Act of 1930 (19 U.S.C. 1516a) is 
     amended as follows:
       (1) Subsection (a)(5) (relating to time limits for 
     commencing review) is amended to read as follows:
       ``(5) Time limits in cases involving merchandise from free 
     trade area countries.--Notwithstanding any other provision of 
     this subsection, in the case of a determination to which the 
     provisions of subsection (g) apply, an action under this 
     subsection may not be commenced, and the time limits for 
     commencing an action under this subsection shall not begin to 
     run, until the day specified in whichever of the following 
     subparagraphs applies:
       ``(A) For a determination described in paragraph (1)(B) or 
     clause (i), (ii) or (iii) of paragraph (2)(B), the 31st day 
     after the date on which notice of the determination is 
     published in the Federal Register.
       ``(B) For a determination described in clause (vi) of 
     paragraph (2)(B), the 31st day after the date on which the 
     government of the relevant FTA country receives notice of the 
     determination.
       ``(C) For a determination with respect to which binational 
     panel review has commenced in accordance with subsection 
     (g)(8), the day after the date as of which--
       ``(i) the binational panel has dismissed binational panel 
     review of the determination for lack of jurisdiction, and
       ``(ii) any interested party seeking review of the 
     determination under paragraph (1), (2), or (3) of this 
     subsection has provided timely notice under subsection 
     (g)(3)(B).

     If such an interested party files a summons and complaint 
     under this subsection after dismissal by the binational 
     panel, and if a request for an extraordinary challenge 
     committee is made with respect to the decision by the 
     binational panel to dismiss--
       ``(I) judicial review under this subsection shall be stayed 
     during consideration by the committee of the request, and
       ``(II) the United States Court of International Trade shall 
     dismiss the action if the committee vacates or remands the 
     binational panel decision to dismiss.
       ``(D) For a determination for which review by the United 
     States Court of International Trade is provided for--
       ``(i) under subsection (g)(12)(B), the day after the date 
     of publication in the Federal Register of notice that article 
     1904 of the NAFTA has been suspended, or
       ``(ii) under subsection (g)(12)(D), the day after the date 
     that notice of settlement is published in the Federal 
     Register.''.
       (2) Subsection (b)(3) (relating to the standards of review) 
     is amended--
       (A) by inserting ``nafta or'' after ``decisions by'' in the 
     heading; and
       (B) by inserting ``of the NAFTA or'' after ``article 
     1904''.
       (3) Subsection (f) (relating to definitions) is amended--
       (A) by amending paragraphs (6) and (7) to read as follows:
       ``(6) United states secretary.--The term `United States 
     Secretary' means--
       ``(A) the secretary for the United States Section referred 
     to in article 1908 of the NAFTA, and
       ``(B) the secretary of the United States Section provided 
     for in article 1909 of the Agreement.
       ``(7)  Relevant fta secretary.--The term `relevant FTA 
     Secretary' means the Secretary--
       ``(A) referred to in article 1908 of the NAFTA, or
       ``(B) provided for in paragraph 5 of article 1909 of the 
     Agreement,
     of the relevant FTA country.''; and
       (B) by adding at the end the following new paragraphs:
       ``(8) NAFTA.--The term `NAFTA' means the North American 
     Free Trade Agreement.
       ``(9) Relevant fta country.--The term `relevant FTA 
     country' means the free trade area country to which an 
     antidumping or countervailing duty proceeding pertains.
       ``(10) Free trade area country.--The term `free trade area 
     country' means the following:
       ``(A) Canada for such time as the NAFTA is in force with 
     respect to, and the United States applies the NAFTA to, 
     Canada.
       ``(B) Mexico for such time as the NAFTA is in force with 
     respect to, and the United States applies the NAFTA to, 
     Mexico.
       ``(C) Canada for such time as--
       ``(i) it is not a free trade area country under 
     subparagraph (A); and
       ``(ii) the Agreement is in force with respect to, and the 
     United States applies the Agreement to, Canada.''.
       (4) Subsection (g) (relating to review of countervailing 
     and antidumping duty determinations) is amended as follows:
       (A) The subsection heading is amended by striking out 
     ``Canadian Merchandise'' and inserting ``Free Trade Area 
     Country Merchandise''.
       (B) Paragraph (1) is amended by striking out ``Canadian 
     merchandise'' and inserting ``free trade area country 
     merchandise''.
       (C) Paragraph (2) is amended by inserting ``of the NAFTA 
     or'' after ``article 1904''.
       (D) Paragraph (3)(A) is amended--
       (i) by striking out ``nor Canada'' and inserting ``nor the 
     relevant FTA country'' in each of clauses (i) and (ii);
       (ii) by inserting ``of the NAFTA or'' before ``of the 
     Agreement'' in each of clauses (i) and (iii);
       (iii) by striking out ``or'' at the end of clause (iii);
       (iv) by amending clause (iv)--

       (I) by striking out ``under paragraph (2)(A)''; and
       (II) by striking out the period and inserting a comma; and

       (v) by adding at the end of subparagraph (A) the following:
       ``(v) a determination as to which binational panel review 
     has terminated pursuant to paragraph 12 of article 1905 of 
     the NAFTA, or
       ``(vi) a determination as to which extraordinary challenge 
     committee review has terminated pursuant to paragraph 12 of 
     article 1905 of the NAFTA.''.
       (E) The first and second sentences of paragraph (3)(B) are 
     amended to read as follows: ``A determination described in 
     subparagraph (A)(i) or (iv) is reviewable under subsection 
     (a) only if the party seeking to commence review has provided 
     timely notice of its intent to commence such review to--
       ``(i) the United States Secretary and the relevant FTA 
     Secretary;
       ``(ii) all interested parties who were parties to the 
     proceeding in connection with which the matter arises; and
       ``(iii) the administering authority or the Commission, as 
     appropriate.

     Such notice is timely provided if the notice is delivered no 
     later than the date that is 20 days after the date described 
     in subparagraph (A) or (B) of subsection (a)(5) that is 
     applicable to such determination, except that, if the time 
     for requesting binational panel review is suspended under 
     paragraph (8)(A)(ii) of this subsection, any unexpired time 
     for providing notice of intent to commence judicial review 
     shall, during the pendency of any such suspension, also be 
     suspended.''.
       (F) Paragraph (4)(A) is amended--
       (i) in the first sentence--

       (I) by inserting ``the North American Free Trade Agreement 
     Implementation Act implementing the binational dispute 
     settlement system under chapter 19 of the NAFTA, or'' after 
     ``or amendment made by,'';
       (II) by inserting a comma before ``violates'';
       (III) by inserting ``only'' after ``may be brought''; and
       (IV) by inserting ``, which shall have jurisdiction of such 
     action'' after ``Circuit''; and

       (ii) by striking the last sentence.
       (G) Paragraph (5) is amended--
       (i) by inserting ``of the NAFTA or'' after ``article 1904'' 
     in each of subparagraphs (A), (B), and (C)(i);
       (ii) by striking out ``, the Canadian Secretary,'' in 
     subparagraph (C)(ii) and inserting ``, the relevant FTA 
     Secretary,''; and
       (iii) by inserting ``of the NAFTA or'' after ``chapter 19'' 
     in subparagraph (C)(iii).
       (H) Paragraph (6) is amended by inserting ``of the NAFTA 
     or'' after ``article 1904''.
       (I) Paragraph (7) is amended--
       (i) by inserting ``of the nafta or the agreement'' before 
     the period in the paragraph heading;
       (ii) by striking out ``In general.--'' in the heading to 
     subparagraph (A) and inserting ``Action upon remand.--''; and
       (iii) by inserting ``the NAFTA or'' before ``the 
     Agreement'' in subparagraph (A).
       (J) Paragraph (8)(A) is amended--
       (i) by inserting ``(i) General Rule.--'' before ``An 
     interested party'';
       (ii) by inserting ``of the NAFTA or'' after ``article 
     1904(4)'';
       (iii) by indenting the text so as to align it with new 
     clause (ii) (as added by clause (iv) of this subparagraph); 
     and
       (iv) by adding at the end the following new clause:
       ``(ii) Suspension of time to request binational panel 
     review under the nafta.--Notwithstanding clause (i), the time 
     for requesting binational panel review shall be suspended 
     during the pendency of any stay of binational panel review 
     that is issued pursuant to paragraph 11(a) of article 1905 of 
     the NAFTA.''.
       (K) Paragraph (8)(B)(ii) is amended by striking out 
     ``Canadian Secretary,'' and inserting ``relevant FTA 
     Secretary,''.
       (L) Paragraph (8)(C) is amended by striking out ``under 
     article 1904 of the Agreement of a determination'' and 
     inserting ``of a determination under article 1904 of the 
     NAFTA or the Agreement''.
       (M) Paragraph (9) is amended by inserting ``of the NAFTA 
     or'' after ``chapter 19''.
       (N) Paragraph (10) is amended by striking out ``Government 
     of Canada'' and all that follows thereafter and inserting 
     ``Government of the relevant FTA country received notice of 
     the determination under paragraph 4 of article 1904 of the 
     NAFTA or the Agreement.''.
       (O) The following new paragraphs are added at the end:
       ``(11) Suspension and termination of suspension of article 
     1904 of the nafta.--
       ``(A) Suspension of article 1904.--If a special committee 
     established under article 1905 of the NAFTA issues an 
     affirmative finding, the Trade Representative may, in 
     accordance with paragraph 8(a) or 9, as appropriate, of 
     article 1905 of the NAFTA, suspend the operation of article 
     1904 of the NAFTA.
       ``(B) Termination of suspension of article 1904.--If a 
     special committee is reconvened and makes an affirmative 
     determination described in paragraph 10(b) of article 1905 of 
     the NAFTA, any suspension of the operation of article 1904 of 
     the NAFTA shall terminate.
       ``(12) Judicial review upon termination of binational panel 
     or committee review under the nafta.--
       ``(A) Notice of suspension or termination of suspension of 
     article 1904.--
       ``(i) Upon notification by the Trade Representative or the 
     Government of a country described in subsection (f)(10)(A) or 
     (B) that the operation of article 1904 of the NAFTA has been 
     suspended in accordance with paragraph 8(a) or 9 of article 
     1905 of the NAFTA, the United States Secretary shall publish 
     in the Federal Register a notice of suspension of article 
     1904 of the NAFTA.
       ``(ii) Upon notification by the Trade Representative or the 
     Government of a country described in subsection (f)(10)(A) or 
     (B) that the suspension of the operation of article 1904 of 
     the NAFTA is terminated in accordance with paragraph 10 of 
     article 1905 of the NAFTA, the United States Secretary shall 
     publish in the Federal Register a notice of termination of 
     suspension of article 1904 of the NAFTA.
       ``(B) Transfer of final determinations for judicial review 
     upon suspension of article 1904.--If the operation of article 
     1904 of the NAFTA is suspended in accordance with paragraph 
     8(a) or 9 of article 1905 of the NAFTA--
       ``(i) upon the request of an authorized person described in 
     subparagraph (C), any final determination that is the subject 
     of a binational panel review or an extraordinary challenge 
     committee review shall be transferred to the United States 
     Court of International Trade (in accordance with rules issued 
     by the Court) for review under subsection (a); or
       ``(ii) in a case in which--

       ``(I) a binational panel review was completed fewer than 30 
     days before the suspension, and

       ``(II) extraordinary challenge committee review has not 
     been requested,

     upon the request of an authorized person described in 
     subparagraph (C) which is made within 60 days after the 
     completion of the binational panel review, the final 
     determination that was the subject of the binational panel 
     review shall be transferred to the United States Court of 
     International Trade (in accordance with rules issued by the 
     Court) for review under subsection (a).
       ``(C) Persons authorized to request transfer of final 
     determinations for judicial review.--A request that a final 
     determination be transferred to the Court of International 
     Trade under subparagraph (B) may be made by--
       ``(i) if the United States made an allegation under 
     paragraph 1 of article 1905 of the NAFTA and the operation of 
     article 1904 of the NAFTA was suspended pursuant to paragraph 
     8(a) of article 1905 of the NAFTA--

       ``(I) the government of the relevant country described in 
     subsection (f)(10)(A) or (B),
       ``(II) an interested party that was a party to the panel or 
     committee review, or

       ``(III) an interested party that was a party to the 
     proceeding in connection with which panel review was 
     requested, but only if the time period for filing notices of 
     appearance in the panel review has not expired, or

       ``(ii) if a country described in subsection (f)(10)(A) or 
     (B) made an allegation under paragraph 1 of article 1905 of 
     the NAFTA and the operation of article 1904 of the NAFTA was 
     suspended pursuant to paragraph 9 of article 1905 of the 
     NAFTA--

       ``(I) the government of that country,
       ``(II) an interested party that is a person of that country 
     and that was a party to the panel or committee review, or
       ``(III) an interested party that is a person of that 
     country and that was a party to the proceeding in connection 
     with which panel review was requested, but only if the time 
     period for filing notices of appearance in the panel review 
     has not expired.

       ``(D)(i) Transfer for judicial review upon settlement.--If 
     the Trade Representative achieves a settlement with the 
     government of a country described in subsection (f)(10)(A) or 
     (B) pursuant to paragraph 7 of article 1905 of the NAFTA, and 
     referral for judicial review is among the terms of such 
     settlement, any final determination that is the subject of a 
     binational panel review or an extraordinary challenge 
     committee review shall, upon a request described in clause 
     (ii), be transferred to the United States Court of 
     International Trade (in accordance with rules issued by the 
     Court) for review under subsection (a).
       ``(ii) A request referred to in clause (i) is a request 
     made by--
       ``(I) the country referred to in clause (i),
       ``(II) an interested party that was a party to the panel or 
     committee review, or
       ``(III) an interested party that was a party to the 
     proceeding in connection with which panel review was 
     requested, but only if the time for filing notices of 
     appearance in the panel review has not expired.''.

     SEC. 412. CONFORMING AMENDMENTS TO OTHER PROVISIONS OF THE 
                   TARIFF ACT OF 1930.

       (a) Regulations for Appraisement and Classification; 
     Finality and Decision.--Sections 502(b) and 514(b) of the 
     Tariff Act of 1930 (19 U.S.C. 1502(b) and 1514(b)) are each 
     amended by inserting ``the North American Free Trade 
     Agreement or'' before ``the United States-Canada Free-Trade 
     Agreement''.
       (b) Definition.--Section 771 of the Tariff Act of 1930 (19 
     U.S.C. 1677) is amended--
       (1) by redesignating as paragraph (21) (and placing in 
     numerical sequence) the second paragraph that is designated 
     as paragraph (18) (relating to the definition of the United 
     States-Canada Agreement) in such section; and
       (2) by inserting after paragraph (21) (as redesignated by 
     paragraph (1) of this subsection) the following new 
     paragraph:
       ``(22) NAFTA.--The term `NAFTA' means the North American 
     Free Trade Agreement.''.
       (c) Disclosure of Proprietary Information in Title VII 
     Proceedings.--Section 777(f) of the Tariff Act of 1930 (19 
     U.S.C. 1677f(f)) is amended--
       (1) by inserting ``the North American Free Trade Agreement 
     or'' before ``the United States-Canada Agreement'' in the 
     heading;
       (2) by inserting ``the NAFTA or'' before ``the United 
     States-Canada Agreement'' each place it appears in paragraph 
     (1)(A);
       (3) in the second sentence of paragraph (1)(A)--
       (A) by inserting ``or extraordinary challenge committee'' 
     after ``binational panel''; and
       (B) by inserting ``or committee'' after ``the panel'';
       (4) in paragraph (1)(B)--
       (A) by inserting ``the NAFTA or'' before ``the Agreement'' 
     in clauses (iii) and (iv); and
       (B) by striking out ``Government of Canada designated by an 
     authorized agency of Canada'' in clause (iv) and inserting 
     ``Government of a free trade area country (as defined in 
     section 516A(f)(10)) designated by an authorized agency of 
     such country'';
       (5) in paragraph (2) by inserting ``, including any 
     extraordinary challenge,'' after ``binational panel 
     proceeding'';
       (6) in paragraph (3)--
       (A) by inserting ``or extraordinary challenge committee'' 
     after ``binational panel'', and
       (B) by inserting ``the NAFTA or'' before ``the United 
     States-Canada Agreement'';
       (7) by striking out ``agency of Canada'' in each of 
     paragraphs (3) and (4) and inserting ``agency of a free trade 
     area country (as defined in section 516A(f)(10))''; and
       (8) in the first sentence of paragraph (4) by inserting ``, 
     except a judge appointed to a binational panel or an 
     extraordinary challenge committee under section 402(b) of the 
     North American Free Trade Agreement Implementation Act,'' 
     after ``Any person''.

     SEC. 413. CONSEQUENTIAL AMENDMENT TO FREE-TRADE AGREEMENT ACT 
                   OF 1988.

       Section 410(a) of the United States-Canada Free-Trade 
     Agreement Implementation Act of 1988 (19 U.S.C. 2112 note) is 
     amended by adding at the end the following new sentence: ``In 
     calculating the 7-year period referred to in paragraph (1), 
     any time during which Canada is a NAFTA country (as defined 
     in section 2(4) of the North American Free Trade Agreement 
     Implementation Act) shall be disregarded.''.

     SEC. 414. 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) by inserting ``the North American 
     Free Trade Agreement or'' before ``the United States-Canada 
     Free-Trade Agreement'';
       (2) in section 1584--
       (A) by amending the section heading to read as follows:

     ``Sec. 1584. Civil actions under the North American Free 
       Trade Agreement or the United States-Canada Free-Trade 
       Agreement''; and

       (B) by striking out ``777(d)'' and inserting ``777(f)''; 
     and
       (3) in the table of contents for such chapter by amending 
     the entry for section 1584 to read as follows:

``1584. Civil actions under the North American Free Trade Agreement or 
              the United States-Canada Free-Trade Agreement.''.

       (b) Particular Proceedings.--Sections 2201(a) and 
     2643(c)(5) of title 28, United States Code, are each amended 
     by striking out ``Canadian merchandise,'' and inserting 
     ``merchandise of a free trade area country (as defined in 
     section 516A(f)(10) of the Tariff Act of 1930),''.

     SEC. 415. EFFECT OF TERMINATION OF NAFTA COUNTRY STATUS.

       (a) In General.--Except as provided in subsection (b), on 
     the date on which a country ceases to be a NAFTA 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 NAFTA 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 
     subtitle) 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).
       (2) Binational panel and extraordinary challenge committee 
     reviews.--If on the date on which a country ceases to be a 
     NAFTA country--
       (A) a binational panel review under article 1904 of the 
     Agreement is pending, or has been requested; or
       (B) an extraordinary challenge committee review under 
     article 1904 of the Agreement is pending, or has been 
     requested;

     with respect to a determination which involves a class or 
     kind of merchandise and to which section 516A(g)(2) of the 
     Tariff Act of 1930 applies, such determination shall be 
     reviewable under section 516A(a) of the Tariff Act of 1930. 
     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 Agreement ceases to 
     be in force with respect to that country.

     SEC. 416. EFFECTIVE DATE.

       The provisions of this title and the amendments made by 
     this title take effect on the date the Agreement enters into 
     force with respect to the United States, but shall not 
     apply--
       (1) to any final determination described in paragraph 
     (1)(B), or (2)(B)(i), (ii), or (iii), of section 516A(a) of 
     the Tariff Act of 1930 notice of which is published in the 
     Federal Register before such date, or to a determination 
     described in paragraph (2)(B)(vi) of section 516A(a) of such 
     Act notice of which is received by the Government of Canada 
     or Mexico before such date; or
       (2) to any binational panel review under the United States-
     Canada Free-Trade Agreement, or any extraordinary challenge 
     arising out of any such review, that was commenced before 
     such date.
 TITLE V--NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE AND OTHER PROVISIONS
      Subtitle A--NAFTA Transitional Adjustment Assistance Program

     SEC. 501. SHORT TITLE.

       This subtitle may be cited as the ``NAFTA Worker Security 
     Act''.

     SEC. 502. ESTABLISHMENT OF NAFTA TRANSITIONAL ADJUSTMENT 
                   ASSISTANCE PROGRAM.

       Chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 
     2271 et seq.) is amended by adding at the end the following 
     new subchapter:

    ``Subchapter D--NAFTA Transitional Adjustment Assistance Program

     ``SEC. 250. ESTABLISHMENT OF TRANSITIONAL PROGRAM.

       ``(a) Group Eligibility Requirements.--
       ``(1) Criteria.--A group of workers (including workers in 
     any agricultural firm or subdivision of an agricultural firm) 
     shall be certified as eligible to apply for adjustment 
     assistance under this subchapter pursuant to a petition filed 
     under subsection (b) if the Secretary determines that a 
     significant number or proportion of the workers in such 
     workers' firm or an appropriate subdivision of the firm have 
     become totally or partially separated, or are threatened to 
     become totally or partially separated, and either--
       ``(A) that--
       ``(i) the sales or production, or both, of such firm or 
     subdivision have decreased absolutely,
       ``(ii) imports from Mexico or Canada of articles like or 
     directly competitive with articles produced by such firm or 
     subdivision have increased, and
       ``(iii) the increase in imports under clause (ii) 
     contributed importantly to such workers' separation or threat 
     of separation and to the decline in the sales or production 
     of such firm or subdivision; or
       ``(B) that there has been a shift in production by such 
     workers' firm or subdivision to Mexico or Canada of articles 
     like or directly competitive with articles which are produced 
     by the firm or subdivision.
       ``(2) Definition of contributed importantly.--The term 
     `contributed importantly', as used in paragraph (1)(A)(iii), 
     means a cause which is important but not necessarily more 
     important than any other cause.
       ``(3) Regulations.--The Secretary shall issue regulations 
     relating to the application of the criteria described in 
     paragraph (1) in making preliminary findings under subsection 
     (b) and determinations under subsection (c).
       ``(b) Preliminary Findings and Basic Assistance.--
       ``(1) Filing of petitions.--A petition for certification of 
     eligibility to apply for adjustment assistance under this 
     subchapter may be filed by a group of workers (including 
     workers in any agricultural firm or subdivision of an 
     agricultural firm) or by their certified or recognized union 
     or other duly authorized representative with the Governor of 
     the State in which such workers' firm or subdivision thereof 
     is located.
       ``(2) Findings and assistance.--Upon receipt of a petition 
     under paragraph (1), the Governor shall--
       ``(A) notify the Secretary that the Governor has received 
     the petition;
       ``(B) within 10 days after receiving the petition--
       ``(i) make a preliminary finding as to whether the petition 
     meets the criteria described in subsection (a)(1) (and for 
     purposes of this clause the criteria described under 
     subparagraph (A)(iii) of such subsection shall be 
     disregarded), and
       ``(ii) transmit the petition, together with a statement of 
     the finding under clause (i) and reasons therefor, to the 
     Secretary for action under subsection (c); and
       ``(C) if the preliminary finding under subparagraph (B)(i) 
     is affirmative, ensure that rapid response and basic 
     readjustment services authorized under other Federal law are 
     made available to the workers.
       ``(c) Review of Petitions by Secretary; Certifications.--
       ``(1) In general.--The Secretary, within 30 days after 
     receiving a petition under subsection (b), shall determine 
     whether the petition meets the criteria described in 
     subsection (a)(1). Upon a determination that the petition 
     meets such criteria, the Secretary shall issue to workers 
     covered by the petition a certification of eligibility to 
     apply for assistance described in subsection (d).
       ``(2) Denial of certification.--Upon denial of 
     certification with respect to a petition under paragraph (1), 
     the Secretary shall review the petition in accordance with 
     the requirements of subchapter A to determine if the workers 
     may be certified under such subchapter.
       ``(d) Comprehensive Assistance.--Workers covered by 
     certification issued by the Secretary under subsection (c) 
     shall be provided, in the same manner and to the same extent 
     as workers covered under a certification under subchapter A, 
     the following:
       ``(1) Employment services described in section 235.
       ``(2) Training described in section 236, except that 
     notwithstanding the provisions of section 236(a)(2)(A), the 
     total amount of payments for training under this subchapter 
     for any fiscal year shall not exceed $30,000,000.
       ``(3) Trade readjustment allowances described in sections 
     231 through 234, except that--
       ``(A) the provisions of sections 231(a)(5)(C) and 231(c), 
     authorizing the payment of trade readjustment allowances upon 
     a finding that it is not feasible or appropriate to approve a 
     training program for a worker, shall not be applicable to 
     payment of such allowances under this subchapter; and
       ``(B) notwithstanding the provisions of section 233(b), in 
     order for a worker to qualify for trade readjustment 
     allowances under this subchapter, the worker shall be 
     enrolled in a training program approved by the Secretary 
     under section 236(a) by the later of--
       ``(i) the last day of the 16th week of such worker's 
     initial unemployment compensation benefit period, or
       ``(ii) the last day of the 6th week after the week in which 
     the Secretary issues a certification covering such worker.

     In cases of extenuating circumstances relating to enrollment 
     in a training program, the Secretary may extend the time for 
     enrollment for a period not to exceed 30 days .
       ``(4) Job search allowances described in section 237.
       ``(5) Relocation allowances described in section 238.
       ``(e) Administration.--The provisions of subchapter C shall 
     apply to the administration of the program under this 
     subchapter in the same manner and to the same extent as such 
     provisions apply to the administration of the program under 
     subchapters A and B, except that the agreement between the 
     Secretary and the States described in section 239 shall 
     specify the procedures that will be used to carry out the 
     certification process under subsection (c) and the procedures 
     for providing relevant data by the Secretary to assist the 
     States in making preliminary findings under subsection 
     (b).''.

     SEC. 503. CONFORMING AMENDMENTS.

       (a) References.--Sections 221(a), 222(a), and 223(a) of the 
     Trade Act of 1974 (19 U.S.C. 2271(a), 2272(a), and 2273(a)) 
     are each amended by striking out ``assistance under this 
     chapter'' and inserting ``assistance under this subchapter''.
       (b) Benefit Information.--Section 225(b) of the Trade Act 
     of 1974 (19 U.S.C. 2275(b)) is amended by inserting ``or 
     subchapter D'' after ``subchapter A'' each place it appears.
       (c) Nonduplication of Assistance.--Subchapter C of chapter 
     2 of title II of the Trade Act of 1974 is amended by adding 
     at the end the following new section:

     ``SEC. 249A. NONDUPLICATION OF ASSISTANCE.

       ``No worker may receive assistance relating to a separation 
     pursuant to certifications under both subchapters A and D of 
     this chapter.''.
       (d) Judicial Review.--Section 284(a) of the Trade Act of 
     1974 (19 U.S.C. 2395(a)) is amended by inserting ``or section 
     250(c)'' after ``section 223''.
       (e) Table of Contents.--The table of contents for chapter 2 
     of title II of the Trade Act of 1974 is amended--
       (1) by inserting after the item relating to section 249 the 
     following new item:

``Sec. 249A. Nonduplication of assistance.'';

     and
       (2) by adding at the end thereof the following new items:


    ``SUBCHAPTER D--NAFTA TRANSITIONAL ADJUSTMENT ASSISTANCE PROGRAM

``Sec. 250. Establishment of transitional program.''.

     SEC. 504. AUTHORIZATION OF APPROPRIATIONS.

       Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is 
     amended--
       (1) by striking ``There'' and inserting ``(a) In General.--
     There'',
       (2) by inserting ``, other than subchapter D'' after 
     ``chapter'', and
       (3) by adding at the end the following new subsection:
       ``(b) Subchapter D.--There are authorized to be 
     appropriated to the Department of Labor, for each of fiscal 
     years 1994, 1995, 1996, 1997, and 1998, such sums as may be 
     necessary to carry out the purposes of subchapter D of this 
     chapter.''.

     SEC. 505. TERMINATION OF TRANSITION PROGRAM.

       Subsection (c) of section 285 of the Trade Act of 1974 (19 
     U.S.C. 2271 preceding note) is amended--
       (1) by striking ``No'' and inserting ``(1) Except as 
     provided in paragraph (2), no''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) Except as provided in subparagraph (B), no 
     assistance, vouchers, allowances, or other payments may be 
     provided under subchapter D of chapter 2 after the day that 
     is the earlier of--
       ``(i) September 30, 1998, or
       ``(ii) the date on which legislation, establishing a 
     program providing dislocated workers with comprehensive 
     assistance substantially similar to the assistance provided 
     by such subchapter D, becomes effective.
       ``(B) Notwithstanding subparagraph (A), if, on or before 
     the day described in subparagraph (A), a worker--
       ``(i) is certified as eligible to apply for assistance, 
     under subchapter D of chapter 2; and
       ``(ii) is otherwise eligible to receive assistance in 
     accordance with section 250,

     such worker shall continue to be eligible to receive such 
     assistance for any week for which the worker meets the 
     eligibility requirements of such section.''.

     SEC. 506. EFFECTIVE DATE.

       (a) In General.--The amendments made by sections 501, 502, 
     503, 504, and 505 shall take effect on the date the Agreement 
     enters into force with respect to the United States.
       (b) Covered Workers.--
       (1) General rule.--Except as provided in paragraph (2), no 
     worker shall be certified as eligible to receive assistance 
     under subchapter D of chapter 2 of title II of the Trade Act 
     of 1974 (as added by this subtitle) whose last total or 
     partial separation from a firm (or appropriate subdivision of 
     a firm) occurred before such date of entry into force.
       (2) Reachback.--Notwithstanding paragraph (1), any worker--
       (A) whose last total or partial separation from a firm (or 
     appropriate subdivision of a firm) occurs--
       (i) after the date of the enactment of this Act, and
       (ii) before such date of entry into force, and
       (B) who would otherwise be eligible to receive assistance 
     under subchapter D of chapter 2 of title II of the Trade Act 
     of 1974,

     shall be eligible to receive such assistance in the same 
     manner as if such separation occurred on or after such date 
     of entry into force.

     SEC. 507. TREATMENT OF SELF-EMPLOYMENT ASSISTANCE PROGRAMS.

       (a) General Rule.--Section 3306 of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subsection:
       ``(t) Self-Employment Assistance Program.--For the purposes 
     of this chapter, the term `self-employment assistance 
     program' means a program under which--
       ``(1) individuals who meet the requirements described in 
     paragraph (3) are eligible to receive an allowance in lieu of 
     regular unemployment compensation under the State law for the 
     purpose of assisting such individuals in establishing a 
     business and becoming self-employed;
       ``(2) the allowance payable to individuals pursuant to 
     paragraph (1) is payable in the same amount, at the same 
     interval, on the same terms, and subject to the same 
     conditions, as regular unemployment compensation under the 
     State law, except that--
       ``(A) State requirements relating to availability for work, 
     active search for work, and refusal to accept work are not 
     applicable to such individuals;
       ``(B) State requirements relating to disqualifying income 
     are not applicable to income earned from self-employment by 
     such individuals; and
       ``(C) such individuals are considered to be unemployed for 
     the purposes of Federal and State laws applicable to 
     unemployment compensation,

     as long as such individuals meet the requirements applicable 
     under this subsection;
       ``(3) individuals may receive the allowance described in 
     paragraph (1) if such individuals--
       ``(A) are eligible to receive regular unemployment 
     compensation under the State law, or would be eligible to 
     receive such compensation except for the requirements 
     described in subparagraph (A) or (B) of paragraph (2);
       ``(B) are identified pursuant to a State worker profiling 
     system as individuals likely to exhaust regular unemployment 
     compensation; and
       ``(C) are participating in self-employment assistance 
     activities which--
       ``(i) include entrepreneurial training, business 
     counseling, and technical assistance; and
       ``(ii) are approved by the State agency; and
       ``(D) are actively engaged on a full-time basis in 
     activities (which may include training) relating to the 
     establishment of a business and becoming self-employed;
       ``(4) the aggregate number of individuals receiving the 
     allowance under the program does not at any time exceed 5 
     percent of the number of individuals receiving regular 
     unemployment compensation under the State law at such time;
       ``(5) the program does not result in any cost to the 
     Unemployment Trust Fund (established by section 904(a) of the 
     Social Security Act) in excess of the cost that would be 
     incurred by such State and charged to such Fund if the State 
     had not participated in such program; and
       ``(6) the program meets such other requirements as the 
     Secretary of Labor determines to be appropriate.''.
       (b) Conforming Amendments.--
       (1) Section 3304(a)(4) of such Code is amended--
       (A) in subparagraph (D), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (E), by striking the semicolon and 
     inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(F) amounts may be withdrawn for the payment of 
     allowances under a self-employment assistance program (as 
     defined in section 3306(t));''.
       (2) Section 3306(f) of such Code is amended--
       (A) in paragraph (3), by striking ``; and'' and inserting a 
     semicolon;
       (B) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following new paragraph:
       ``(5) amounts may be withdrawn for the payment of 
     allowances under a self-employment assistance program (as 
     defined in subsection (t)).''.
       (3) Section 303(a)(5) of the Social Security Act (42 U.S.C. 
     503(a)(5)) is amended by striking ``; and'' and inserting ``: 
     Provided further, That amounts may be withdrawn for the 
     payment of allowances under a self-employment assistance 
     program (as defined in section 3306(t) of the Internal 
     Revenue Code of 1986); and''.
       (c) State Reports.--Any State operating a self-employment 
     program authorized by the Secretary of Labor under this 
     section shall report annually to the Secretary on the number 
     of individuals who participate in the self-employment 
     assistance program, the number of individuals who are able to 
     develop and sustain businesses, the operating costs of the 
     program, compliance with program requirements, and any other 
     relevant aspects of program operations requested by the 
     Secretary.
       (d) Report to Congress.--Not later than 4 years after the 
     date of the enactment of this Act, the Secretary of Labor 
     shall submit a report to the Congress with respect to the 
     operation of the program authorized under this section. Such 
     report shall be based on the reports received from the States 
     pursuant to subsection (c) and include such other information 
     as the Secretary of Labor determines is appropriate.
       (e) Effective Date; Sunset.--
       (1) Effective date.--The provisions of this section and the 
     amendments made by this section shall take effect on the date 
     of the enactment of this Act.
       (2) Sunset.--The authority provided by this section, and 
     the amendments made by this section, shall terminate 5 years 
     after the date of the enactment of this Act.
   Subtitle B--Provisions Relating to Performance Under the Agreement

     SEC. 511. DISCRIMINATORY TAXES.

       It is the sense of the Congress that when a State, 
     province, or other governmental entity of a NAFTA country 
     discriminatorily enforces sales or other taxes so as to 
     afford protection to domestic production or domestic service 
     providers, such enforcement is in violation of the terms of 
     the Agreement. When such discriminatory enforcement adversely 
     affects United States producers of goods or United States 
     service providers, the Trade Representative should pursue all 
     appropriate remedies to obtain removal of such discriminatory 
     enforcement, including invocation of the provisions of the 
     Agreement.

     SEC. 512. REVIEW OF THE OPERATION AND EFFECTS OF THE 
                   AGREEMENT.

       (a) Study.--By not later than July 1, 1997, the President 
     shall provide to the Congress a comprehensive study on the 
     operation and effects of the Agreement. The study shall 
     include an assessment of the following factors:
       (1) The net effect of the Agreement on the economy of the 
     United States, including with respect to the United States 
     gross national product, employment, balance of trade, and 
     current account balance.
       (2) The industries (including agricultural industries) in 
     the United States that have significantly increased exports 
     to Mexico or Canada as a result of the Agreement, or in which 
     imports into the United States from Mexico or Canada have 
     increased significantly as a result of the Agreement, and the 
     extent of any change in the wages, employment, or 
     productivity in each such industry as a result of the 
     Agreement.
       (3) The extent to which investment in new or existing 
     production or other operations in the United States has been 
     redirected to Mexico as a result of the Agreement, and the 
     effect on United States employment of such redirection.
       (4) The extent of any increase in investment, including 
     foreign direct investment and increased investment by United 
     States investors, in new or existing production or other 
     operations in the United States as a result of the Agreement, 
     and the effect on United States employment of such 
     investment.
       (5) The extent to which the Agreement has contributed to--
       (A) improvement in real wages and working conditions in 
     Mexico,
       (B) effective enforcement of labor and environmental laws 
     in Mexico, and
       (C) the reduction or abatement of pollution in the region 
     of the United States-Mexico border.
       (b) Scope.--In assessing the factors listed in subsection 
     (a), to the extent possible, the study shall distinguish 
     between the consequences of the Agreement and events that 
     likely would have occurred without the Agreement. In 
     addition, the study shall evaluate the effects of the 
     Agreement relative to aggregate economic changes and, to the 
     extent possible, relative to the effects of other factors, 
     including--
       (1) international competition,
       (2) reductions in defense spending,
       (3) the shift from traditional manufacturing to knowledge 
     and information based economic activity, and
       (4) the Federal debt burden.
       (c) Recommendations of the President.--The study shall 
     include any appropriate recommendations by the President with 
     respect to the operation and effects of the Agreement, 
     including recommendations with respect to the specific 
     factors listed in subsection (a).
       (d) Recommendations of Certain Committees.--The President 
     shall provide the study to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate and any other committee that has jurisdiction over 
     any provision of United States law that was either enacted or 
     amended by the North American Free Trade Agreement 
     Implementation Act. Each such committee may hold hearings and 
     make recommendations to the President with respect to the 
     operation and effects of the Agreement.

     SEC. 513. ACTIONS AFFECTING UNITED STATES CULTURAL 
                   INDUSTRIES.

       Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) is 
     amended by adding at the end the following new subsection:
       ``(f) Special Rule for Actions Affecting United States 
     Cultural Industries.--
       ``(1) In general.--By no later than the date that is 30 
     days after the date on which the annual report is submitted 
     to Congressional committees under section 181(b), the Trade 
     Representative shall identify any act, policy, or practice of 
     Canada which--
       ``(A) affects cultural industries,
       ``(B) is adopted or expanded after December 17, 1992, and
       ``(C) is actionable under article 2106 of the North 
     American Free Trade Agreement.
       ``(2) Special rules for identifications.--For purposes of 
     section 302(b)(2)(A), an act, policy, or practice identified 
     under this subsection shall be treated as an act, policy, or 
     practice that is the basis for identification of a country 
     under subsection (a)(2), unless the United States has already 
     taken action pursuant to article 2106 of the North American 
     Free Trade Agreement in response to such act, policy, or 
     practice. In deciding whether to identify an act, policy, or 
     practice under paragraph (1), the Trade Representative 
     shall--
       ``(A) consult with and take into account the views of 
     representatives of the relevant domestic industries, 
     appropriate committees established pursuant to section 135, 
     and appropriate officers of the Federal Government, and
       ``(B) take into account the information from such sources 
     as may be available to the Trade Representative and such 
     information as may be submitted to the Trade Representative 
     by interested persons, including information contained in 
     reports submitted under section 181(b).
       ``(3) Cultural industries.--For purposes of this 
     subsection, the term `cultural industries' means persons 
     engaged in any of the following activities:
       ``(A) The publication, distribution, or sale of books, 
     magazines, periodicals, or newspapers in print or machine 
     readable form but not including the sole activity of printing 
     or typesetting any of the foregoing.
       ``(B) The production, distribution, sale, or exhibition of 
     film or video recordings.
       ``(C) The production, distribution, sale, or exhibition of 
     audio or video music recordings.
       ``(D) The publication, distribution, or sale of music in 
     print or machine readable form.
       ``(E) Radio communications in which the transmissions are 
     intended for direct reception by the general public, and all 
     radio, television, and cable broadcasting undertakings and 
     all satellite programming and broadcast network services.''.

     SEC. 514. REPORT ON IMPACT OF NAFTA ON MOTOR VEHICLE EXPORTS 
                   TO MEXICO.

       (a) Findings.--The Congress makes the following findings:
       (1) Trade in motor vehicles and motor vehicle parts is one 
     of the most restricted areas of trade between the United 
     States and Mexico.
       (2) The elimination of Mexico's restrictive barriers to 
     trade in motor vehicles and motor vehicle parts over a 10-
     year period under the Agreement should increase substantially 
     United States exports of such products to Mexico.
       (3) The Department of Commerce estimates that the Agreement 
     provides the opportunity to increase United States exports of 
     motor vehicles and motor vehicle parts by $1,000,000,000 
     during the first year of the Agreement's implementation with 
     the potential for additional increases over the 10-year 
     transition period.
       (4) The United States automotive industry has estimated 
     that United States exports of motor vehicles to Mexico should 
     increase to more than 60,000 units during the first year of 
     the Agreement's implementation, which is substantially above 
     the current level of 4,000 units.
       (b) Trade Representative Report.--No later than July 1, 
     1995, and annually thereafter through 1999, the Trade 
     Representative shall submit a report to the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives on how effective the provisions 
     of the Agreement are with respect to increasing United States 
     exports of motor vehicles and motor vehicle parts to Mexico. 
     Each report shall identify and determine the following:
       (1) The patterns of trade in motor vehicles and motor 
     vehicle parts between the United States and Mexico during the 
     preceding 12-month period.
       (2) The level of tariff and nontariff barriers that were in 
     force during the preceding 12-month period.
       (3) The amount by which United States exports of motor 
     vehicles and motor vehicle parts to Mexico have increased 
     from the preceding 12-month period as a result of the 
     elimination of Mexican tariff and nontariff barriers under 
     the Agreement.
       (4) Whether any such increase in United States exports 
     meets the levels of new export opportunities anticipated 
     under the Agreement.
       (5) If the anticipated levels of new United States export 
     opportunities are not reached, what actions the Trade 
     Representative is prepared to take to realize the benefits 
     anticipated under the Agreement, including possible 
     initiation of additional negotiations with Mexico for the 
     purpose of seeking modifications of the Agreement.

     SEC. 515. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC TRADE.

       (a) Amendment to the CBI.--The Caribbean Basin Economic 
     Recovery Act (19 U.S.C. 2701 et seq.) is amended by inserting 
     after section 218 the following new section:

     ``SEC. 219. CENTER FOR THE STUDY OF WESTERN HEMISPHERIC 
                   TRADE.

       ``(a)  Establishment.--The Commissioner of Customs, after 
     consultation with appropriate officials in the State of 
     Texas, is authorized and directed to make grants to an 
     institution (or a consortium of such institutions) to assist 
     such institution in planning, establishing, and operating a 
     Center for the Study of Western Hemispheric Trade (hereafter 
     in this section referred to as the `Center'). The 
     Commissioner of Customs shall make the first grant not later 
     than December 1, 1994, and the Center shall be established 
     not later than February 1, 1995.
       ``(b)  Scope of the Center.--The Center shall be a year-
     round program operated by an institution located in the State 
     of Texas (or a consortium of such institutions), the purpose 
     of which is to promote and study trade between and among 
     Western Hemisphere countries. The Center shall conduct 
     activities designed to examine--
       ``(1) the impact of the NAFTA on the economies in, and 
     trade within, the Western Hemisphere,
       ``(2) the negotiation of any future free trade agreements, 
     including possible accessions to the NAFTA; and
       ``(3) adjusting tariffs, reducing nontariff barriers, 
     improving relations among customs officials, and promoting 
     economic relations among countries in the Western Hemisphere.
       ``(c)  Consultation; Selection Criteria.--The Commissioner 
     of Customs shall consult with appropriate officials of the 
     State of Texas and private sector authorities with respect to 
     selecting, planning, and establishing the Center. In 
     selecting the appropriate institution, the Commissioner of 
     Customs shall give consideration to--
       ``(1) the institution's ability to carry out the programs 
     and activities described in this section; and
       ``(2) any resources the institution can provide the Center 
     in addition to Federal funds provided under this program.
       ``(d)  Programs and Activities.--The Center shall conduct 
     the following activities:
       ``(1) Provide forums for international discussion and 
     debate for representatives from countries in the Western 
     Hemisphere regarding issues which affect trade and other 
     economic relations within the hemisphere, including the 
     impact of the NAFTA on individual economies and the 
     desirability and feasibility of possible accessions to the 
     NAFTA by such countries.
       ``(2) Conduct studies and research projects on subjects 
     which affect Western Hemisphere trade, including tariffs, 
     customs, regional and national economics, business 
     development and finance, production and personnel management, 
     manufacturing, agriculture, engineering, transportation, 
     immigration, telecommunications, medicine, science, urban 
     studies, border demographics, social anthropology, and 
     population.
       ``(3) Publish materials, disseminate information, and 
     conduct seminars and conferences to support and educate 
     representatives from countries in the Western Hemisphere who 
     seek to do business with or invest in other Western 
     Hemisphere countries.
       ``(4) Provide grants, fellowships, endowed chairs, and 
     financial assistance to outstanding scholars and authorities 
     from Western Hemisphere countries.
       ``(5) Provide grants, fellowships, and other financial 
     assistance to qualified graduate students, from Western 
     Hemisphere countries, to study at the Center.
       ``(6) Implement academic exchange programs and other 
     cooperative research and instructional agreements with the 
     complementary North/South Center at the University of Miami 
     at Coral Gables.
       ``(e)  Definitions.--For purposes of this section--
       ``(1) Nafta.--The term `NAFTA' means the North American 
     Free Trade Agreement.
       ``(2)  Western hemisphere countries.--The terms `Western 
     Hemisphere countries', `countries in the Western Hemisphere', 
     and `Western Hemisphere' mean Canada, the United States, 
     Mexico, countries located in South America, beneficiary 
     countries (as defined by section 212), the Commonwealth of 
     Puerto Rico, and the United States Virgin Islands.
       ``(f)  Fees for Seminars and Publications.--Notwithstanding 
     any other provision of law, a grant made under this section 
     may provide that the Center may charge a reasonable fee for 
     attendance at seminars and conferences and for copies of 
     publications, studies, reports, and other documents the 
     Center publishes. The Center may waive such fees in any case 
     in which it determines imposing a fee would impose a 
     financial hardship and the purposes of the Center would be 
     served by granting such a waiver.
       ``(g) Duration of Grant.--The Commissioner of Customs is 
     directed to make grants to any institution or institutions 
     selected as the Center for fiscal years 1994, 1995, 1996, and 
     1997.
       ``(h) Report.--The Commissioner of Customs shall, no later 
     than July 1, 1994, and annually thereafter for years for 
     which grants are made, submit a written report to the 
     Committee on Finance of the Senate and the Committee on Ways 
     and Means of the House of Representatives. The first report 
     shall include--
       ``(1) a statement identifying the institution or 
     institutions selected as the Center,
       ``(2) the reasons for selecting the institution or 
     institutions as the Center, and
       ``(3) the plan of such institution or institutions for 
     operating the Center.

     Each subsequent report shall include information with respect 
     to the operations of the Center, the collaboration of the 
     Center with, and dissemination of information to, Government 
     policymakers and the business community with respect to the 
     study of Western Hemispheric trade by the Center, and the 
     plan and efforts of the Center to continue operations after 
     grants under this section have expired.''.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated $10,000,000 for fiscal year 1994, and such 
     sums as may be necessary in the 3 succeeding fiscal years to 
     carry out the purposes of section 219 of the Caribbean Basin 
     Economic Recovery Act (as added by subsection (a)).

     SEC. 516. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), the 
     provisions of this subtitle shall take effect on the date the 
     Agreement enters into force with respect to the United 
     States.
       (b) Exception.--Section 515 shall take effect on the date 
     of the enactment of this Act.
                          Subtitle C--Funding

                       PART 1--CUSTOMS USER FEES

     SEC. 521. FEES FOR CERTAIN CUSTOMS SERVICES.

       (a) In General.--Section 13031 of the Consolidated Omnibus 
     Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is 
     amended--
       (1) by amending paragraph (5) of subsection (a) to read as 
     follows:
       ``(5)(A) For fiscal years 1994, 1995, 1996, and 1997, for 
     the arrival of each passenger aboard a commercial vessel or 
     commercial aircraft from outside the customs territory of the 
     United States, $6.50.
       ``(B) For fiscal year 1998 and each fiscal year thereafter, 
     for the arrival of each passenger aboard a commercial vessel 
     or commercial aircraft from a place outside the United States 
     (other than a place referred to in subsection (b)(1)(A) of 
     this section), $5.''
       (2) by adding at the end of paragraph (1) of subsection 
     (b), the following flush sentence:

     ``Subparagraph (A) shall not apply to fiscal years 1994, 
     1995, 1996, and 1997.'',
       (3) in subsection (f)--
       (A) in paragraph (1), by striking ``except'' and all that 
     follows through the end period and inserting: ``except--
       ``(A) the portion of such fees that is required under 
     paragraph (3) for the direct reimbursement of appropriations, 
     and
       ``(B) the portion of such fees that is determined by the 
     Secretary to be excess fees under paragraph (5).'',
       (B) in paragraph (3)(A), by striking the first 
     parenthetical and inserting ``(other than the fees under 
     subsection (a) (9) and (10) and the excess fees determined by 
     the Secretary under paragraph (5))'',
       (C) in paragraph (4), by striking ``under subsection (a)'' 
     and inserting ``under subsection (a) (other than the excess 
     fees determined by the Secretary under paragraph (5))'', and
       (D) by adding at the end thereof the following new 
     paragraph:
       ``(5) At the close of each of fiscal years 1994, 1995, 
     1996, and 1997, the Secretary of the Treasury shall determine 
     the amount of the fees collected under paragraph (5)(A) of 
     subsection (a) for that fiscal year that exceeds the amount 
     of such fees that would have been collected for such fiscal 
     year if the fees that were in effect on the day before the 
     effective date of this paragraph applied to such fiscal year. 
     The amount of the excess fees determined under the preceding 
     sentence shall be deposited in the Customs User Fee Account 
     and shall be available for reimbursement of inspectional 
     costs (including passenger processing costs) not otherwise 
     reimbursed under this section, and shall be available only to 
     the extent provided in appropriations Acts.'', and
       (4) in paragraph (3) of subsection (j), by striking 
     ``September 30, 1998'' and inserting ``September 30, 2003''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date the Agreement enters into force 
     with respect to the United States.

                PART 2--INTERNAL REVENUE CODE AMENDMENTS

     SEC. 522. AUTHORITY TO DISCLOSE CERTAIN TAX INFORMATION TO 
                   THE UNITED STATES CUSTOMS SERVICE.

       (a) In General.--Subsection (l) of section 6103 of the 
     Internal Revenue Code of 1986 (relating to confidentiality 
     and disclosure of returns and return information) is amended 
     by adding at the end thereof the following new paragraph:
       ``(14) Disclosure of return information to united states 
     customs service.--The Secretary may, upon written request 
     from the Commissioner of the United States Customs Service, 
     disclose to officers and employees of the Department of the 
     Treasury such return information with respect to taxes 
     imposed by chapters 1 and 6 as the Secretary may prescribe by 
     regulations, solely for the purpose of, and only to the 
     extent necessary in--
       ``(A) ascertaining the correctness of any entry in audits 
     as provided for in section 509 of the Tariff Act of 1930 (19 
     U.S.C. 1509), or
       ``(B) other actions to recover any loss of revenue, or to 
     collect duties, taxes, and fees, determined to be due and 
     owing pursuant to such audits.''
       (b) Conforming Amendments.--Paragraphs (3)(A) and (4) of 
     section 6103(p) of such Code are each amended by striking 
     ``or (13)'' each place it appears and inserting ``(13), or 
     (14)''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date the Agreement enters into force with 
     respect to the United States.
       (2) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of the Treasury or 
     his delegate shall issue temporary regulations to carry out 
     section 6103(l)(14) of the Internal Revenue Code of 1986, as 
     added by this section.

     SEC. 523. USE OF ELECTRONIC FUND TRANSFER SYSTEM FOR 
                   COLLECTION OF CERTAIN TAXES.

       (a) General Rule.--Section 6302 of the Internal Revenue 
     Code of 1986 (relating to mode or time of collection) is 
     amended by redesignating subsection (h) as subsection (i) and 
     by inserting after subsection (g) the following new 
     subsection:
       ``(h) Use of Electronic Fund Transfer System for Collection 
     of Certain Taxes.--
       ``(1) Establishment of system.--
       ``(A) In general.--The Secretary shall prescribe such 
     regulations as may be necessary for the development and 
     implementation of an electronic fund transfer system which is 
     required to be used for the collection of depository taxes. 
     Such system shall be designed in such manner as may be 
     necessary to ensure that such taxes are credited to the 
     general account of the Treasury on the date on which such 
     taxes would otherwise have been required to be deposited 
     under the Federal tax deposit system.
       ``(B) Exemptions.--The regulations prescribed under 
     subparagraph (A) may contain such exemptions as the Secretary 
     may deem appropriate.
       ``(2) Phase-in requirements.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the regulations referred to in paragraph (1)--
       ``(i) shall contain appropriate procedures to assure that 
     an orderly conversion from the Federal tax deposit system to 
     the electronic fund transfer system is accomplished, and
       ``(ii) may provide for a phase-in of such electronic fund 
     transfer system by classes of taxpayers based on the 
     aggregate undeposited taxes of such taxpayers at the close of 
     specified periods and any other factors the Secretary may 
     deem appropriate.
       ``(B) Phase-in requirements.--The phase-in of the 
     electronic fund transfer system shall be designed in such 
     manner as may be necessary to ensure that--
       ``(i) during each fiscal year beginning after September 30, 
     1993, at least the applicable required percentage of the 
     total depository taxes imposed by chapters 21, 22, and 24 
     shall be collected by means of electronic fund transfer, and
       ``(ii) during each fiscal year beginning after September 
     30, 1993, at least the applicable required percentage of the 
     total other depository taxes shall be collected by means of 
     electronic fund transfer.
       ``(C) Applicable required percentage.--
       ``(i) In the case of the depository taxes imposed by 
     chapters 21, 22, and 24, the applicable required percentage 
     is--

       ``(I) 3 percent for fiscal year 1994,
       ``(II) 16.9 percent for fiscal year 1995,
       ``(III) 20.1 percent for fiscal year 1996,
       ``(IV) 58.3 percent for fiscal years 1997 and 1998, and
       ``(V) 94 percent for fiscal year 1999 and all fiscal years 
     thereafter.

       ``(ii) In the case of other depository taxes, the 
     applicable required percentage is--

       ``(I) 3 percent for fiscal year 1994,
       ``(II) 20 percent for fiscal year 1995,
       ``(III) 30 percent for fiscal year 1996,
       ``(IV) 60 percent for fiscal years 1997 and 1998, and
       ``(V) 94 percent for fiscal year 1999 and all fiscal years 
     thereafter.

       ``(3) Definitions.--For purposes of this subsection--
       ``(A) Depository tax.--The term `depository tax' means any 
     tax if the Secretary is authorized to require deposits of 
     such tax.
       ``(B) Electronic fund transfer.--The term `electronic fund 
     transfer' means any transfer of funds, other than a 
     transaction originated by check, draft, or similar paper 
     instrument, which is initiated through an electronic 
     terminal, telephonic instrument, or computer or magnetic tape 
     so as to order, instruct, or authorize a financial 
     institution or other financial intermediary to debit or 
     credit an account.
       ``(4) Coordination with other electronic fund transfer 
     requirements.--
       ``(A) Coordination with certain excise taxes.--In 
     determining whether the requirements of subparagraph (B) of 
     paragraph (2) are met, taxes required to be paid by 
     electronic fund transfer under sections 5061(e) and 5703(b) 
     shall be disregarded.
       ``(B) Additional requirement.--Under regulations, any tax 
     required to be paid by electronic fund transfer under section 
     5061(e) or 5703(b) shall be paid in such a manner as to 
     ensure that the requirements of the second sentence of 
     paragraph (1)(A) of this subsection are satisfied.''
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date the Agreement enters into force with 
     respect to the United States.
       (2) Regulations.--Not later than 210 days after the date of 
     enactment of this Act, the Secretary of the Treasury or his 
     delegate shall prescribe temporary regulations under section 
     6302(h) of the Internal Revenue Code of 1986 (as added by 
     this section).
      Subtitle D--Implementation of NAFTA Supplemental Agreements

          PART 1--AGREEMENTS RELATING TO LABOR AND ENVIRONMENT

     SEC. 531. AGREEMENT ON LABOR COOPERATION.

       (a) Commission for Labor Cooperation.--
       (1) Membership.--The United States is authorized to 
     participate in the Commission for Labor Cooperation in 
     accordance with the North American Agreement on Labor 
     Cooperation.
       (2) Contributions to budget.--There are authorized to be 
     appropriated to the President (or such agency as the 
     President may designate) $2,000,000 for each of fiscal years 
     1994 and 1995 for United States contributions to the annual 
     budget of the Commission for Labor Cooperation pursuant to 
     Article 43 of the North American Agreement on Labor 
     Cooperation. Funds authorized to be appropriated for such 
     contributions by this paragraph are in addition to any funds 
     otherwise available for such contributions. Funds authorized 
     to be appropriated by this paragraph are authorized to be 
     made available until expended.
       (b) Definitions.--As used in this section--
       (1) the term ``Commission for Labor Cooperation'' means the 
     commission established by Part Three of the North American 
     Agreement on Labor Cooperation; and
       (2) the term ``North American Agreement on Labor 
     Cooperation'' means the North American Agreement on Labor 
     Cooperation Between the Government of the United States of 
     America, the Government of Canada, and the Government of the 
     United Mexican States (signed at Mexico City, Washington, and 
     Ottawa on September 8, 9, 12, and 14, 1993).

     SEC. 532. AGREEMENT ON ENVIRONMENTAL COOPERATION.

       (a) Commission for Environmental Cooperation.--
       (1) Membership.--The United States is authorized to 
     participate in the Commission for Environmental Cooperation 
     in accordance with the North American Agreement on 
     Environmental Cooperation.
       (2) Contributions to budget.--There are authorized to be 
     appropriated to the President (or such agency as the 
     President may designate) $5,000,000 for each of fiscal years 
     1994 and 1995 for United States contributions to the annual 
     budget of the Commission for Environmental Cooperation 
     pursuant to Article 43 of the North American Agreement on 
     Environmental Cooperation. Funds authorized to be 
     appropriated for such contributions by this paragraph are in 
     addition to any funds otherwise available for such 
     contributions. Funds authorized to be appropriated by this 
     paragraph are authorized to be made available until expended.
       (b) Definitions.--As used in this section--
       (1) the term ``Commission for Environmental Cooperation'' 
     means the commission established by Part Three of the North 
     American Agreement on Environmental Cooperation; and
       (2) the term ``North American Agreement on Environmental 
     Cooperation'' means the North American Agreement on 
     Environmental Cooperation Between the Government of the 
     United States of America, the Government of Canada, and the 
     Government of the United Mexican States (signed at Mexico 
     City, Washington, and Ottawa on September 8, 9, 12, and 14, 
     1993).

     SEC. 533. AGREEMENT ON BORDER ENVIRONMENT COOPERATION 
                   COMMISSION.

       (a) Border Environment Cooperation Commission.--
       (1) Membership.--The United States is authorized to 
     participate in the Border Environment Cooperation Commission 
     in accordance with the Border Environment Cooperation 
     Agreement.
       (2) Contributions to the commission budget.--There are 
     authorized to be appropriated to the President (or such 
     agency as the President may designate) $5,000,000 for fiscal 
     year 1994 and each fiscal year thereafter for United States 
     contributions to the budget of the Border Environment 
     Cooperation Commission pursuant to section 7 of Article III 
     of Chapter I of the Border Environment Cooperation Agreement. 
     Funds authorized to be appropriated for such contributions by 
     this paragraph are in addition to any funds otherwise 
     available for such contributions. Funds authorized to be 
     appropriated by this paragraph are authorized to be made 
     available until expended.
       (b) Civil Actions Involving the Commission.--For the 
     purpose of any civil action which may be brought within the 
     United States by or against the Border Environment 
     Cooperation Commission in accordance with the Border 
     Environment Cooperation Agreement (including an action 
     brought to enforce an arbitral award against the Commission), 
     the Commission shall be deemed to be an inhabitant of the 
     Federal judicial district in which its principal office 
     within the United States, or its agent appointed for the 
     purpose of accepting service or notice of service, is 
     located. Any such action to which the Commission is a party 
     shall be deemed to arise under the laws of the United States, 
     and the district courts of the United States (including the 
     courts enumerated in section 460 of title 28, United States 
     Code) shall have original jurisdiction of any such action. 
     When the Commission is a defendant in any action in a State 
     court, it may at any time before trial remove the action into 
     the appropriate district court of the United States by 
     following the procedure for removal provided in section 1446 
     of title 28, United States Code.
       (c) Definitions.--As used in this section--
       (1) the term ``Border Environment Cooperation Agreement'' 
     means the November 1993 Agreement Between the Government of 
     the United States of America and the Government of the United 
     Mexican States Concerning the Establishment of a Border 
     Environment Cooperation Commission and a North American 
     Development Bank;
       (2) the terms ``Border Environment Cooperation Commission'' 
     and ``Commission'' mean the commission established pursuant 
     to Chapter I of the Border Environment Cooperation Agreement; 
     and
       (3) the term ``United States'' means the United States, its 
     territories and possessions, and the Commonwealth of Puerto 
     Rico.

     PART 2--NORTH AMERICAN DEVELOPMENT BANK AND RELATED PROVISIONS

     SEC. 541. NORTH AMERICAN DEVELOPMENT BANK.

       (a) Acceptance of Membership.--The President is hereby 
     authorized to accept membership for the United States in the 
     North American Development Bank (hereafter in this part 
     referred to as the ``Bank'') provided for in Chapter II of 
     the Border Environment Cooperation Agreement (hereafter in 
     this part referred to as the ``Cooperation Agreement'').
       (b) Subscription of Stock.--
       (1) Subscription authority.--
       (A) In general.--The Secretary of the Treasury may 
     subscribe on behalf of the United States up to 150,000 shares 
     of the capital stock of the Bank.
       (B) Effectiveness of subscription.--Except as provided in 
     paragraph (3), any such subscription shall be effective only 
     to such extent or in such amounts as are provided in advance 
     in appropriations Acts.
       (2) Limitations on authorization of appropriations.--For 
     payment by the Secretary of the Treasury of the subscription 
     of the United States for shares described in paragraph (1), 
     there are authorized to be appropriated $1,500,000,000 
     ($225,000,000 of which may be used for paid-in capital and 
     $1,275,000,000 of which may be used for callable capital) 
     without fiscal year limitation.
       (3) Funding; limitation on callable capital 
     subscriptions.--
       (A) Funding.--For fiscal year 1995, the Secretary of the 
     Treasury shall pay to the Bank out of any sums in the 
     Treasury not otherwise appropriated the sum of $56,250,000 
     for the paid-in portion of the United States share of the 
     capital stock of the Bank, 10 percent of which may be 
     transferred by the Bank to the President pursuant to section 
     543 to pay for the cost of direct and guaranteed Federal 
     loans.
       (B) Limitation on callable capital subscriptions.--For 
     fiscal year 1995, the Secretary of the Treasury shall 
     subscribe to the callable capital portion of the United 
     States share of the capital stock of the Bank in an amount 
     not to exceed $318,750,000.
       (4) Disposition of net income distributed by the 
     facility.--Any payment made to the United States by the Bank 
     as a distribution of net income shall be covered into the 
     Treasury as a miscellaneous receipt.
       (c) Compensation of Board Members.--No person shall be 
     entitled to receive any salary or other compensation from the 
     Bank or the United States for services as a Board member.
       (d) Applicability of Bretton Woods Agreements Act.--The 
     provisions of section 4 of the Bretton Woods Agreements Act 
     shall apply with respect to the Bank to the same extent as 
     with respect to the International Bank for Reconstruction and 
     Development and the International Monetary Fund.
       (e) Restrictions.--Unless authorized by law, neither the 
     President nor any person or agency shall, on behalf of the 
     United States--
       (1) subscribe to additional shares of stock of the Bank;
       (2) vote for or agree to any amendment of the Cooperation 
     Agreement which increases the obligations of the United 
     States, or which changes the purpose or functions of the 
     Bank; or
       (3) make a loan or provide other financing to the Bank.
       (f) Federal Reserve Banks as Depositories.--Any Federal 
     Reserve bank that is requested to do so by the Bank shall act 
     as its depository or as its fiscal agent, and the Board of 
     Governors of the Federal Reserve System shall supervise and 
     direct the carrying out of these functions by the Federal 
     Reserve banks.
       (g) Jurisdiction of United States Courts and Enforcement of 
     Arbitral Awards.--For the purpose of any civil action which 
     may be brought within the United States, its territories or 
     possessions, or the Commonwealth of Puerto Rico, by or 
     against the Bank in accordance with the Cooperation 
     Agreement, including an action brought to enforce an arbitral 
     award against the Bank, the Bank shall be deemed to be an 
     inhabitant of the Federal judicial district in which its 
     principal office within the United States or its agency 
     appointed for the purpose of accepting service or notice of 
     service is located, and any such action to which the Bank 
     shall be a party shall be deemed to arise under the laws of 
     the United States, and the district courts of the United 
     States, including the courts enumerated in section 460 of 
     title 28, United States Code, shall have original 
     jurisdiction of any such action. When the Bank is a defendant 
     in any action in a State court, it may at any time before 
     trial remove the action into the appropriate district court 
     of the United States by following the procedure for removal 
     provided in section 1446 of title 28, United States Code.
       (h) Exemption From Securities Laws for Certain Securities 
     Issued by the Bank; Reports Required.--
       (1) Exemptions from limitations and restrictions on the 
     power of national banking associations to deal in and 
     underwrite investment securities of the bank.--The seventh 
     sentence of the seventh undesignated paragraph of section 
     5136 of the Revised Statutes of the United States (12 U.S.C. 
     24), is amended by inserting ``the North American Development 
     Bank,'' after ``Inter-American Development Bank,''.
       (2) Exemption from securities laws for certain securities 
     issued by the bank; reports required.--Any securities issued 
     by the Bank (including any guarantee by the Bank, whether or 
     not limited in scope) in connection with the raising of funds 
     for inclusion in the Bank's capital resources as defined in 
     Section 4 of Article II of Chapter II of the Cooperation 
     Agreement, and any securities guaranteed by the Bank as to 
     both the principal and interest to which the commitment in 
     Section 3(d) of Article II of Chapter II of the Cooperation 
     Agreement is expressly applicable, shall be deemed to be 
     exempted securities within the meaning of section 3(a)(2) of 
     the Securities Act of 1933 (15 U.S.C. 77c), and section 
     3(a)(12) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78c). The Bank shall file with the Securities and Exchange 
     Commission such annual and other reports with regard to such 
     securities as the Commission shall determine to be 
     appropriate in view of the special character of the Bank and 
     its operations and necessary in the public interest or for 
     the protection of investors.
       (3) Authority of securities and exchange commission to 
     suspend exemption; reports to the congress.--The Securities 
     and Exchange Commission, acting in consultation with the 
     National Advisory Council on International Monetary and 
     Financial Problems, is authorized to suspend the provisions 
     of paragraph (2) at any time as to any or all securities 
     issued or guaranteed by the Bank during the period of such 
     suspension. The Commission shall include in its annual 
     reports to Congress such information as it shall deem 
     advisable with regard to the operations and effect of this 
     subsection and in connection therewith shall include any 
     views submitted for such purpose by any association of 
     dealers registered with the Commission.

     SEC. 542. STATUS, IMMUNITIES, AND PRIVILEGES.

       Article VIII of Chapter II of the Cooperation Agreement 
     shall have full force and effect in the United States, its 
     territories and possessions, and the Commonwealth of Puerto 
     Rico, upon entry into force of the Cooperation Agreement.

     SEC. 543. COMMUNITY ADJUSTMENT AND INVESTMENT PROGRAM.

       (a) The President.--(1) The President may enter into an 
     agreement with the Bank that facilitates implementation by 
     the President of a program for community adjustment and 
     investment in support of the Agreement pursuant to chapter II 
     of the Cooperation Agreement (hereafter in this section 
     referred to as the ``community adjustment and investment 
     program'').
       (2) The President may receive from the Bank 10 percent of 
     the paid-in capital actually paid to the Bank by the United 
     States for the President to carry out, without further 
     appropriations, through Federal agencies and their loan and 
     loan guarantee programs, the community adjustment and 
     investment program, pursuant to an agreement between the 
     President and the Bank.
       (3) The President may select one or more Federal agencies 
     that make loans or guarantees the repayment of loans to 
     assist in carrying out the community adjustment and 
     investment program, and may transfer the funds received from 
     the Bank to such agency or agencies for the purpose of 
     assisting in carrying out the community adjustment and 
     investment program.
       (4)(A) Each Federal agency selected by the President to 
     assist in carrying out the community adjustment and 
     investment program shall use the funds transferred to it by 
     the President from the Bank to pay for the costs of direct 
     and guaranteed loans, as defined in section 502 of the 
     Congressional Budget Act of 1974, and, as appropriate, other 
     costs associated with such loans, all subject to the 
     restrictions and limitations that apply to such agency's 
     existing loan or loan guarantee program.
       (B) Funds transferred to an agency under subparagraph (A) 
     shall be in addition to the amount of funds authorized in any 
     appropriations Act to be expended by that agency for its loan 
     or loan guarantee program.
       (5) The President shall--
       (A) establish guidelines for the loans and loan guarantees 
     to be made under the community adjustment and investment 
     program;
       (B) endorse the grants made by the Bank for the community 
     adjustment and investment program, as provided in Article I, 
     section 1(b), and Article III, section 11(a), of Chapter II 
     of the Cooperation Agreement; and
       (C) endorse any loans or guarantees made by the Bank for 
     the community adjustment and investment program, as provided 
     in Article I, section 1(b), and Article III, section 6(a) and 
     (c) of Chapter II of the Cooperation Agreement.
       (b) Advisory Committee.--
       (1) Establishment.--The President shall establish an 
     advisory committee to be known as the Community Adjustment 
     and Investment Program Advisory Committee (in this section 
     referred to as the ``Advisory Committee'') in accordance with 
     the provisions of the Federal Advisory Committee Act.
       (2) Membership.--
       (A) In general.--The Advisory Committee shall consist of 9 
     members of the public, appointed by the President, who, 
     collectively, represent--
       (i) community groups whose constituencies include low-
     income families;
       (ii) any scientific, professional, business, nonprofit, or 
     public interest organization or association which is neither 
     affiliated with, nor under the direction of, a government;
       (iii) for-profit business interests; and
       (iv) other appropriate entities with relevant expertise.
       (B) Representation.--Each of the categories described in 
     clauses (i) through (iv) of subparagraph (A) shall be 
     represented by no fewer than 1 and no more than 3 members of 
     the Advisory Committee.
       (3) Function.--It shall be the function of the Advisory 
     Committee--
       (A) to provide advice to the President regarding the 
     implementation of the community adjustment and investment 
     program, including advice on the guidelines to be established 
     by the President for the loans and loan guarantees to be made 
     pursuant to subsection (a)(4), advice on identifying the 
     needs for adjustment assistance and investment in support of 
     the goals and objectives of the Agreement, taking into 
     account economic and geographic considerations, and advice on 
     such other matters as may be requested by the President; and
       (B) to review on a regular basis the operation of the 
     community adjustment and investment program and provide the 
     President with the conclusions of its review.
       (4) Terms of members.--
       (A) In general.--Each member of the Advisory Committee 
     shall serve at the pleasure of the President.
       (B) Chairperson.--The President shall appoint a chairperson 
     from among the members of the Advisory Committee.
       (C) Meetings.--The Advisory Committee shall meet at least 
     annually and at such other times as requested by the 
     President or the chairperson. A majority of the members of 
     the Advisory Committee shall constitute a quorum.
       (D) Reimbursement for expenses.--The members of the 
     Advisory Committee may receive reimbursement for travel, per 
     diem, and other necessary expenses incurred in the 
     performance of their duties, in accordance with the Federal 
     Advisory Committee Act.
       (E) Staff and facilities.--The Advisory Committee may 
     utilize the facilities and services of employees of any 
     Federal agency without cost to the Advisory Committee, and 
     any such agency is authorized to provide services as 
     requested by the Committee.
       (c) Ombudsman.--The President shall appoint an ombudsman to 
     provide the public with an opportunity to participate in the 
     carrying out of the community adjustment and investment 
     program.
       (1) Function.--It shall be the function of the ombudsman--
       (A) to establish procedures for receiving comments from the 
     general public on the operation of the community adjustment 
     and investment program, to receive such comments, and to 
     provide the President with summaries of the public comments; 
     and
       (B) to perform an independent inspection and programmatic 
     audit of the operation of the community adjustment and 
     investment program and to provide the President with the 
     conclusions of its investigation and audit.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to the President, or such agency as the 
     President may designate, $25,000 for fiscal year 1995 and for 
     each fiscal year thereafter, for the costs of the ombudsman.
       (d) Reporting Requirement.--The President shall submit to 
     the appropriate congressional committees an annual report on 
     the community adjustment and investment program (if any) that 
     is carried out pursuant to this section. Each report shall 
     state the amount of the loans made or guaranteed during the 
     12-month period ending on the day before the date of the 
     report.

     SEC. 544. DEFINITION.

       For purposes of this part, the term ``Border Environment 
     Cooperation Agreement'' (referred to in this part as the 
     ``Cooperation Agreement'') means the November 1993 Agreement 
     Between the Government of the United States of America and 
     the Government of the United Mexican States Concerning the 
     Establishment of a Border Environment Cooperation Commission 
     and a North American Development Bank.
                    TITLE VI--CUSTOMS MODERNIZATION

     SEC. 601. REFERENCE.

       Whenever in subtitle A, B, or C an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a part, 
     section, subsection, or other provision, the reference shall 
     be considered to be made a part, section, subsection, or 
     other provision of the Tariff Act of 1930 (19 U.S.C. 1202 et 
     seq.).
            Subtitle A--Improvements in Customs Enforcement

     SEC. 611. PENALTIES FOR VIOLATIONS OF ARRIVAL, REPORTING, 
                   ENTRY, AND CLEARANCE REQUIREMENTS.

       Section 436 (19 U.S.C. 1436) is amended--
       (1) by amending subsection (a)--
       (A) by striking out ``433'' in paragraph (1) and inserting 
     ``431, 433, or 434 of this Act or section 4197 of the Revised 
     Statutes of the United States (46 U.S.C. App. 91)'',
       (B) by amending paragraph (2) to read as follows:
       ``(2) to present or transmit, electronically or otherwise, 
     any forged, altered, or false document, paper, information, 
     data or manifest to the Customs Service under section 431(e), 
     433(d), or 434 of this Act or section 4197 of the Revised 
     Statutes of the United States (46 U.S.C. App. 91) without 
     revealing the facts; or'', and
       (C) by amending paragraph (3) to read as follows:
       ``(3) to fail to make entry or to obtain clearance as 
     required by section 434 or 644 of this Act, section 4197 of 
     the Revised Statutes of the United States (46 U.S.C. App. 
     91), or section 1109 of the Federal Aviation Act of 1958 (49 
     U.S.C. App. 1509); or''; and
       (2) by striking out ````AND ENTRY'' in the section heading 
     and inserting ``ENTRY, AND CLEARANCE''.

     SEC. 612. FAILURE TO DECLARE.

       Section 497(a) (19 U.S.C. 1497(a)) is amended--
       (1) by inserting ``or transmitted'' after ``made'' in 
     paragraph (1)(A); and
       (2) by amending paragraph (2)(A) to read as follows:
       ``(A) if the article is a controlled substance, either $500 
     or an amount equal to 1,000 percent of the value of the 
     article, whichever amount is greater; and''.

     SEC. 613. CUSTOMS TESTING LABORATORIES; DETENTION OF 
                   MERCHANDISE.

       (a) Amendment.--Section 499 (19 U.S.C. 1499) is amended to 
     read as follows:

     ``SEC. 499. EXAMINATION OF MERCHANDISE.

       ``(a) Entry Examination.--
       ``(1) In general.--Imported merchandise that is required by 
     law or regulation to be inspected, examined, or appraised 
     shall not be delivered from customs custody (except under 
     such bond or other security as may be prescribed by the 
     Secretary to assure compliance with all applicable laws, 
     regulations, and instructions which the Secretary or the 
     Customs Service is authorized to enforce) until the 
     merchandise has been inspected, appraised, or examined and is 
     reported by the Customs Service to have been truly and 
     correctly invoiced and found to comply with the requirements 
     of the laws of the United States.
       ``(2) Examination.--The Customs Service--
       ``(A) shall designate the packages or quantities of 
     merchandise covered by any invoice or entry which are to be 
     opened and examined for the purpose of appraisement or 
     otherwise;
       ``(B) shall order such packages or quantities to be sent to 
     such place as is designated by the Secretary by regulation 
     for such purpose;
       ``(C) may require such additional packages or quantities as 
     the Secretary considers necessary for such purpose; and
       ``(D) shall inspect a sufficient number of shipments, and 
     shall examine a sufficient number of entries, to ensure 
     compliance with the laws enforced by the Customs Service.
       ``(3) Unspecified articles.--If any package contains any 
     article not specified in the invoice or entry and, in the 
     opinion of the Customs Service, the article was omitted from 
     the invoice or entry--
       ``(A) with fraudulent intent on the part of the seller, 
     shipper, owner, agent, importer of record, or entry filer, 
     the contents of the entire package in which such article is 
     found shall be subject to seizure; or
       ``(B) without fraudulent intent, the value of the article 
     shall be added to the entry and the duties, fees, and taxes 
     thereon paid accordingly.
       ``(4) Deficiency.--If a deficiency is found in quantity, 
     weight, or measure in the examination of any package, the 
     person finding the deficiency shall make a report thereof to 
     the Customs Service. The Customs Service shall make allowance 
     for the deficiency in the liquidation of duties.
       ``(5) Information required for release.--If an examination 
     is conducted, any information required for release shall be 
     provided, either electronically or in paper form, to the 
     Customs Service at the port of examination. The absence of 
     such information does not limit the authority of the Customs 
     Service to conduct an examination.
       ``(b) Testing Laboratories.--
       ``(1) Accreditation of private testing laboratories.--The 
     Customs Service shall establish and implement a procedure, 
     under regulations promulgated by the Secretary, for 
     accrediting private laboratories within the United States 
     which may be used to perform tests (that would otherwise be 
     performed by Customs Service laboratories) to establish the 
     characteristics, quantities, or composition of imported 
     merchandise. Such regulations--
       ``(A) shall establish the conditions required for the 
     laboratories to receive and maintain accreditation for 
     purposes of this subsection;
       ``(B) shall establish the conditions regarding the 
     suspension and revocation of accreditation, which may include 
     the imposition of a monetary penalty not to exceed $100,000 
     and such penalty is in addition to the recovery, from a 
     gauger or laboratory accredited under paragraph (1), of any 
     loss of revenue that may have occurred, but the Customs 
     Service--
       ``(i) may seek to recover lost revenue only in cases where 
     the gauger or laboratory intentionally falsified the analysis 
     or gauging report in collusion with the importer; and
       ``(ii) shall neither assess penalties nor seek to recover 
     lost revenue because of a good faith difference of 
     professional opinion; and
       ``(C) may provide for the imposition of a reasonable charge 
     for accreditation and periodic reaccreditation.

     The collection of any charge for accreditation and 
     reaccreditation under this section is not prohibited by 
     section 13031(e)(6) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(e)(6)).
       ``(2) Appeal of adverse accreditation decisions.--A 
     laboratory applying for accreditation, or that is accredited, 
     under this section may contest any decision or order of the 
     Customs Service denying, suspending, or revoking 
     accreditation, or imposing a monetary penalty, by commencing 
     an action in accordance with chapter 169 of title 28, United 
     States Code, in the Court of International Trade within 60 
     days after issuance of the decision or order.
       ``(3) Testing by accredited laboratories.--When requested 
     by an importer of record of merchandise, the Customs Service 
     shall authorize the release to the importer of a 
     representative sample of the merchandise for testing, at the 
     expense of the importer, by a laboratory accredited under 
     paragraph (1). The testing results from a laboratory 
     accredited under paragraph (1) that are submitted by an 
     importer of record with respect to merchandise in an entry 
     shall, in the absence of testing results obtained from a 
     Customs Service laboratory, be accepted by the Customs 
     Service if the importer of record certifies that the sample 
     tested was taken from the merchandise in the entry. Nothing 
     in this subsection shall be construed to limit in any way or 
     preclude the authority of the Customs Service to test or 
     analyze any sample or merchandise independently.
       ``(4) Availability of testing procedure, methodologies, and 
     information.--Testing procedures and methodologies used by 
     the Customs Service, and information resulting from any 
     testing conducted by the Customs Service, shall be made 
     available as follows:
       ``(A) Testing procedures and methodologies shall be made 
     available upon request to any person unless the procedures or 
     methodologies are--
       ``(i) proprietary to the holder of a copyright or patent 
     related to such procedures or methodologies, or
       ``(ii) developed by the Customs Service for enforcement 
     purposes.
       ``(B) Information resulting from testing shall be made 
     available upon request to the importer of record and any 
     agent thereof unless the information reveals information 
     which is--
       ``(i) proprietary to the holder of a copyright or patent; 
     or
       ``(ii) developed by the Customs Service for enforcement 
     purposes.
       ``(5) Miscellaneous provisions.--For purposes of this 
     subsection--
       ``(A) any reference to a private laboratory includes a 
     reference to a private gauger; and
       ``(B) accreditation of private laboratories extends only to 
     the performance of functions by such laboratories that are 
     within the scope of those responsibilities for determinations 
     of the elements relating to admissibility, quantity, 
     composition, or characteristics of imported merchandise that 
     are vested in, or delegated to, the Customs Service.
       ``(c) Detentions.--Except in the case of merchandise with 
     respect to which the determination of admissibility is vested 
     in an agency other than the Customs Service, the following 
     apply:
       ``(1) In general.--Within the 5-day period (excluding 
     weekends and holidays) following the date on which 
     merchandise is presented for customs examination, the Customs 
     Service shall decide whether to release or detain the 
     merchandise. Merchandise which is not released within such 5-
     day period shall be considered to be detained merchandise.
       ``(2) Notice of detention.--The Customs Service shall issue 
     a notice to the importer or other party having an interest in 
     detained merchandise no later than 5 days, excluding weekends 
     and holidays, after the decision to detain the merchandise is 
     made. The notice shall advise the importer or other 
     interested party of--
       ``(A) the initiation of the detention;
       ``(B) the specific reason for the detention;
       ``(C) the anticipated length of the detention;
       ``(D) the nature of the tests or inquiries to be conducted; 
     and
       ``(E) the nature of any information which, if supplied to 
     the Customs Service, may accelerate the disposition of the 
     detention.
       ``(3) Testing results.--Upon request by the importer or 
     other party having an interest in detained merchandise, the 
     Customs Service shall provide the party with copies of the 
     results of any testing conducted by the Customs Service on 
     the merchandise and a description of the testing procedures 
     and methodologies (unless such procedures or methodologies 
     are proprietary to the holder of a copyright or patent or 
     were developed by the Customs Service for enforcement 
     purposes). The results and test description shall be in 
     sufficient detail to permit the duplication and analysis of 
     the testing and the results.
       ``(4) Seizure and forfeiture.--If otherwise provided by 
     law, detained merchandise may be seized and forfeited.
       ``(5) Effect of failure to make determination.--
       ``(A) The failure by the Customs Service to make a final 
     determination with respect to the admissibility of detained 
     merchandise within 30 days after the merchandise has been 
     presented for customs examination, or such longer period if 
     specifically authorized by law, shall be treated as a 
     decision of the Customs Service to exclude the merchandise 
     for purposes of section 514(a)(4).
       ``(B) For purposes of section 1581 of title 28, United 
     States Code, a protest against the decision to exclude the 
     merchandise which has not been allowed or denied in whole or 
     in part before the 30th day after the day on which the 
     protest was filed shall be treated as having been denied on 
     such 30th day.
       ``(C) Notwithstanding section 2639 of title 28, United 
     States Code, once an action respecting a detention is 
     commenced, unless the Customs Service establishes by a 
     preponderance of the evidence that an admissibility decision 
     has not been reached for good cause, the court shall grant 
     the appropriate relief which may include, but is not limited 
     to, an order to cancel the detention and release the 
     merchandise.''.
       (b) Existing Laboratories.--Accreditation under section 
     499(b) of the Tariff Act of 1930 (as added by subsection (a)) 
     is not required for any private laboratory (including any 
     gauger) that was accredited or approved by the Customs 
     Service as of the day before the date of the enactment of 
     this Act; but any such laboratory is subject to 
     reaccreditation under the provisions of such section and the 
     regulations promulgated thereunder.

     SEC. 614. RECORDKEEPING.

       Section 508 (19 U.S.C. 1508) is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Requirements.--Any--
       ``(1) owner, importer, consignee, importer of record, entry 
     filer, or other party who--
       ``(A) imports merchandise into the customs territory of the 
     United States, files a drawback claim, or transports or 
     stores merchandise carried or held under bond, or
       ``(B) knowingly causes the importation or transportation or 
     storage of merchandise carried or held under bond into or 
     from the customs territory of the United States;
       ``(2) agent of any party described in paragraph (1); or
       ``(3) person whose activities require the filing of a 
     declaration or entry, or both;

     shall make, keep, and render for examination and inspection 
     records (which for purposes of this section include, but are 
     not limited to, statements, declarations, documents and 
     electronically generated or machine readable data) which--
       ``(A) pertain to any such activity, or to the information 
     contained in the records required by this Act in connection 
     with any such activity; and
       ``(B) are normally kept in the ordinary course of 
     business.''; and
       (2) by amending subsection (c) to read as follows:
       ``(c) Period of Time.--The records required by subsections 
     (a) and (b) shall be kept for such period of time, not to 
     exceed 5 years from the date of entry or exportation, as 
     appropriate, as the Secretary shall prescribe; except that 
     records for any drawback claim shall be kept until the 3rd 
     anniversary of the date of payment of the claim.''.

     SEC. 615. EXAMINATION OF BOOKS AND WITNESSES.

       Section 509 (19 U.S.C. 1509) is amended as follows:
       (1) Subsection (a) is amended--
       (A) by striking out ``and taxes'' wherever it appears and 
     inserting ``, fees and taxes'';
       (B) by amending paragraph (1) to read as follows:
       ``(1) examine, or cause to be examined, upon reasonable 
     notice, any record (which for purposes of this section, 
     includes, but is not limited to, any statement, declaration, 
     document, or electronically generated or machine readable 
     data) described in the notice with reasonable specificity, 
     which may be relevant to such investigation or inquiry, 
     except that--
       ``(A) if such record is required by law or regulation for 
     the entry of the merchandise (whether or not the Customs 
     Service required its presentation at the time of entry) it 
     shall be provided to the Customs Service within a reasonable 
     time after demand for its production is made, taking into 
     consideration the number, type, and age of the item demanded; 
     and
       ``(B) if a person of whom demand is made under subparagraph 
     (A) fails to comply with the demand, the person may be 
     subject to penalty under subsection (g);'';
       (C) by amending that part of paragraph (2) that precedes 
     subparagraph (D) to read as follows:
       ``(2) summon, upon reasonable notice--
       ``(A) the person who--
       ``(i) imported, or knowingly caused to be imported, 
     merchandise into the customs territory of the United States,
       ``(ii) exported merchandise, or knowingly caused 
     merchandise to be exported, to Canada,
       ``(iii) transported or stored merchandise that was or is 
     carried or held under customs bond, or knowingly caused such 
     transportation or storage, or
       ``(iv) filed a declaration, entry, or drawback claim with 
     the Customs Service;
       ``(B) any officer, employee, or agent of any person 
     described in subparagraph (A);
       ``(C) any person having possession, custody or care of 
     records relating to the importation or other activity 
     described in subparagraph (A); or''; and
       (D) by striking out the comma at the end of subparagraph 
     (D) and inserting a semicolon.
       (2) Subsections (b) and (c) are redesignated as subsections 
     (c) and (d), respectively.
       (3) The following new subsection is inserted after 
     subsection (a):
       ``(b) Regulatory Audit Procedures.--
       ``(1) In conducting a regulatory audit under this section 
     (which does not include a quantity verification for a customs 
     bonded warehouse or general purpose foreign trade zone), the 
     Customs Service auditor shall provide the person being 
     audited, in advance of the audit, with a reasonable estimate 
     of the time to be required for the audit. If in the course of 
     an audit it becomes apparent that additional time will be 
     required, the Customs Service auditor shall immediately 
     provide a further estimate of such additional time.
       ``(2) Before commencing an audit, the Customs Service 
     auditor shall inform the party to be audited of his right to 
     an entry conference at which time the purpose will be 
     explained and an estimated termination date set. Upon 
     completion of on-site audit activities, the Customs Service 
     auditor shall schedule a closing conference to explain the 
     preliminary results of the audit.
       ``(3) Except as provided in paragraph (5), if the estimated 
     or actual termination date for an audit passes without the 
     Customs Service auditor providing a closing conference to 
     explain the results of the audit, the person being audited 
     may petition in writing for such a conference to the 
     appropriate regional commissioner, who, upon receipt of such 
     a request, shall provide for such a conference to be held 
     within 15 days after the date of receipt.
       ``(4) Except as provided in paragraph (5), the Customs 
     Service auditor shall complete the formal written audit 
     report within 90 days following the closing conference unless 
     the appropriate regional commissioner provides written notice 
     to the person being audited of the reason for any delay and 
     the anticipated completion date. After application of any 
     exemption contained in section 552 of title 5, United States 
     Code, a copy of the formal written audit report shall be sent 
     to the person audited no later than 30 days following 
     completion of the report.
       ``(5) Paragraphs (3) and (4) shall not apply after the 
     Customs Service commences a formal investigation with respect 
     to the issue involved.''.
       (4) Subsection (d) (as redesignated by paragraph (2)) is 
     amended--
       (A) by striking out ``statements, declarations, or 
     documents'' in paragraph (1)(A) and inserting ``those'';
       (B) by inserting ``, unless such customhouse broker is the 
     importer of record on an entry'' after ``broker'' in 
     paragraph (1)(C)(i);
       (C) by striking out ``import'' in each of paragraphs (2)(B) 
     and (4)(B);
       (D) by inserting ``described in section 508'' after 
     ``transactions'' in each of paragraphs (2)(B) and (4)(B); and
       (E) by inserting ``, fees,'' after ``duties'' in paragraph 
     (4)(A).
       (5) The following new subsections are added at the end 
     thereof:
       ``(e) List of Records and Information.--The Customs Service 
     shall identify and publish a list of the records or entry 
     information that is required to be maintained and produced 
     under subsection (a)(1)(A).
       ``(f) Recordkeeping Compliance Program.--
       ``(1) In general.--After consultation with the importing 
     community, the Customs Service shall by regulation establish 
     a recordkeeping compliance program which the parties listed 
     in section 508(a) may participate in after being certified by 
     the Customs Service under paragraph (2). Participation in the 
     recordkeeping compliance program by recordkeepers is 
     voluntary.
       ``(2) Certification.--A recordkeeper may be certified as a 
     participant in the recordkeeping compliance program after 
     meeting the general recordkeeping requirements established 
     under the program or after negotiating an alternative program 
     suited to the needs of the recordkeeper and the Customs 
     Service. Certification requirements shall take into account 
     the size and nature of the importing business and the volume 
     of imports. In order to be certified, the recordkeeper must 
     be able to demonstrate that it--
       ``(A) understands the legal requirements for recordkeeping, 
     including the nature of the records required to be maintained 
     and produced and the time periods involved;
       ``(B) has in place procedures to explain the recordkeeping 
     requirements to those employees who are involved in the 
     preparation, maintenance, and production of required records;
       ``(C) has in place procedures regarding the preparation and 
     maintenance of required records, and the production of such 
     records to the Customs Service;
       ``(D) has designated a dependable individual or individuals 
     to be responsible for recordkeeping compliance under the 
     program and whose duties include maintaining familiarity with 
     the recordkeeping requirements of the Customs Service;
       ``(E) has a record maintenance procedure approved by the 
     Customs Service for original records, or, if approved by the 
     Customs Service, for alternative records or recordkeeping 
     formats other than the original records; and
       ``(F) has procedures for notifying the Customs Service of 
     occurrences of variances to, and violations of, the 
     requirements of the recordkeeping compliance program or the 
     negotiated alternative programs, and for taking corrective 
     action when notified by the Customs Service of violations or 
     problems regarding such program.
       ``(g) Penalties.--
       ``(1) Definition.--For purposes of this subsection, the 
     term `information' means any record, statement, declaration, 
     document, or electronically stored or transmitted information 
     or data referred to in subsection (a)(1)(A).
       ``(2) Effects of failure to comply with demand.--Except as 
     provided in paragraph (4), if a person fails to comply with a 
     lawful demand for information under subsection (a)(1)(A) the 
     following provisions apply:
       ``(A) If the failure to comply is a result of the willful 
     failure of the person to maintain, store, or retrieve the 
     demanded information, such person shall be subject to a 
     penalty, for each release of merchandise, not to exceed 
     $100,000, or an amount equal to 75 percent of the appraised 
     value of the merchandise, whichever amount is less.
       ``(B) If the failure to comply is a result of the 
     negligence of the person in maintaining, storing, or 
     retrieving the demanded information, such person shall be 
     subject to a penalty, for each release of merchandise, not to 
     exceed $10,000, or an amount equal to 40 percent of the 
     appraised value of the merchandise, whichever amount is less.
       ``(C) In addition to any penalty imposed under subparagraph 
     (A) or (B) regarding demanded information, if such 
     information related to the eligibility of merchandise for a 
     column 1 special rate of duty under title I, the entry of 
     such merchandise--
       ``(i) if unliquidated, shall be liquidated at the 
     applicable column 1 general rate of duty; or
       ``(ii) if liquidated within the 2-year period preceding the 
     date of the demand, shall be reliquidated, notwithstanding 
     the time limitation in section 514 or 520, at the applicable 
     column 1 general rate of duty;
     except that any liquidation or reliquidation under clause (i) 
     or (ii) shall be at the applicable column 2 rate of duty if 
     the Customs Service demonstrates that the merchandise should 
     be dutiable at such rate.
       ``(3) Avoidance of penalty.--No penalty may be assessed 
     under this subsection if the person can show--
       ``(A) that the loss of the demanded information was the 
     result of an act of God or other natural casualty or disaster 
     beyond the fault of such person or an agent of the person;
       ``(B) on the basis of other evidence satisfactory to the 
     Customs Service, that the demand was substantially complied 
     with; or
       ``(C) the information demanded was presented to and 
     retained by the Customs Service at the time of entry or 
     submitted in response to an earlier demand.
       ``(4) Penalties not exclusive.--Any penalty imposed under 
     this subsection shall be in addition to any other penalty 
     provided by law except for--
       ``(A) a penalty imposed under section 592 for a material 
     omission of the demanded information, or
       ``(B) disciplinary action taken under section 641.
       ``(5) Remission or mitigation.--A penalty imposed under 
     this section may be remitted or mitigated under section 618.
       ``(6) Customs summons.--Nothing in this subsection shall 
     limit or preclude the Customs Service from issuing, or 
     seeking the enforcement of, a customs summons.
       ``(7) Alternatives to penalties.--
       ``(A) In general.--When a recordkeeper who--
       ``(i) has been certified as a participant in the 
     recordkeeping compliance program under subsection (f); and
       ``(ii) is generally in compliance with the appropriate 
     procedures and requirements of the program;

     does not produce a demanded record or information for a 
     specific release or provide the information by acceptable 
     alternative means, the Customs Service, in the absence of 
     willfulness or repeated violations, shall issue a written 
     notice of the violation to the recordkeeper in lieu of a 
     monetary penalty. Repeated violations by the recordkeeper may 
     result in the issuance of penalties and removal of 
     certification under the program until corrective action, 
     satisfactory to the Customs Service, is taken.
       ``(B) Contents of notice.--A notice of violation issued 
     under subparagraph (A) shall--
       ``(i) state that the recordkeeper has violated the 
     recordkeeping requirements;
       ``(ii) indicate the record or information which was 
     demanded; and
       ``(iii) warn the recordkeeper that future failures to 
     produce demanded records or information may result in the 
     imposition of monetary penalties.
       ``(C) Response to notice.--Within a reasonable time after 
     receiving written notice under subparagraph (A), the 
     recordkeeper shall notify the Customs Service of the steps it 
     has taken to prevent a recurrence of the violation.
       ``(D) Regulations.--The Secretary shall promulgate 
     regulations to implement this paragraph. Such regulations may 
     specify the time periods for compliance with a demand for 
     information and provide guidelines which define repeated 
     violations for purposes of this paragraph. Any penalty issued 
     for a recordkeeping violation shall take into account the 
     degree of compliance compared to the total number of 
     importations, the nature of the demanded records and the 
     recordkeeper's cooperation.''.

     SEC. 616. JUDICIAL ENFORCEMENT.

       The second sentence of section 510(a) (19 U.S.C. 1510(a)) 
     is amended by inserting ``and such court may assess a 
     monetary penalty'' after ``as a contempt thereof''.

     SEC. 617. REVIEW OF PROTESTS.

       Section 515 (19 U.S.C. 1515) is amended by inserting at the 
     end the following new subsections:
       ``(c) If a protesting party believes that an application 
     for further review was erroneously or improperly denied or 
     was denied without authority for such action, it may file 
     with the Commissioner of Customs a written request that the 
     denial of the application for further review be set aside. 
     Such request must be filed within 60 days after the date of 
     the notice of the denial. The Commissioner of Customs may 
     review such request and, based solely on the information 
     before the Customs Service at the time the application for 
     further review was denied, may set aside the denial of the 
     application for further review and void the denial of 
     protest, if appropriate. If the Commissioner of Customs fails 
     to act within 60 days after the date of the request, the 
     request shall be considered denied. All denials of protests 
     are effective from the date of original denial for purposes 
     of section 2636 of title 28, United States Code. If an action 
     is commenced in the Court of International Trade that arises 
     out of a protest or an application for further review, all 
     administrative action pertaining to such protest or 
     application shall terminate and any administrative action 
     taken subsequent to the commencement of the action is null 
     and void.
       ``(d) If a protest is timely and properly filed, but is 
     denied contrary to proper instructions, the Customs Service 
     may on its own initiative, or pursuant to a written request 
     by the protesting party filed with the appropriate district 
     director within 90 days after the date of the protest denial, 
     void the denial of the protest.''.

     SEC. 618. REPEAL OF PROVISION RELATING TO RELIQUIDATION ON 
                   ACCOUNT OF FRAUD.

       Section 521 (19 U.S.C. 1521) is repealed.

     SEC. 619. PENALTIES RELATING TO MANIFESTS.

       Section 584 (19 U.S.C. 1584) is amended--
       (1) by amending subsection (a)--
       (A) by striking out ``appropriate customs officer'' 
     wherever it appears and inserting ``Customs Service'',
       (B) by striking out ``officer demanding the same'' in 
     paragraph (1) and inserting ``officer (whether of the Customs 
     Service or the Coast Guard) demanding the same'', and
       (C) by inserting ``(electronically or otherwise)'' after 
     ``submission'' in the last sentence of paragraph (1); and
       (2) by amending subsection (b)--
       (A) by striking out ``the appropriate customs officer'', 
     ``he'' (except in paragraph (1)(F)), and ``such officer'' 
     wherever they appear and inserting ``the Customs Service'',
       (B) by striking out ``written'' wherever it appears (other 
     than paragraph (1)(F)),
       (C) by inserting ``or electronically transmit'' after 
     ``issue'' wherever it appears, and
       (D) by striking out ``his intention'' in the first sentence 
     of paragraph (1) and inserting ``intent''.

     SEC. 620. UNLAWFUL UNLADING OR TRANSSHIPMENT.

       Section 586 (19 U.S.C. 1586) is amended--
       (1) by inserting ``, or of a hovering vessel which has 
     received or delivered merchandise while outside the 
     territorial sea,'' after ``from a foreign port or place'' 
     wherever it appears; and
       (2) by amending subsection (f)--
       (A) by striking out ``the appropriate customs officer of 
     the'' and ``the appropriate customs officer within the'' and 
     inserting ``the Customs Service at the''; and
       (B) by striking out ``the appropriate customs officer is'' 
     and inserting ``the Customs Service is''.

     SEC. 621. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND 
                   NEGLIGENCE; PRIOR DISCLOSURE.

       Section 592 (19 U.S.C. 1592) is amended--
       (1) by inserting ``or electronically transmitted data or 
     information'' after ``document'' in subsection (a)(1)(A)(i);
       (2) by inserting ``The mere nonintentional repetition by an 
     electronic system of an initial clerical error does not 
     constitute a pattern of negligent conduct.'' at the end of 
     subsection (a)(2);
       (3) by amending subsection (b)--
       (A) by amending the first sentence of paragraph (1)(A)--
       (i) by striking out ``the appropriate customs officer'' and 
     inserting ``the Customs Service'',
       (ii) by striking out ``he'' and inserting ``it'', and
       (iii) by striking out ``his'' and inserting ``its'', and
       (B) by amending paragraph (2)--
       (i) by striking out ``the appropriate customs officer'' 
     wherever it appears and inserting ``the Customs Service'',
       (ii) by striking out ``such officer'' wherever it appears 
     and inserting ``the Customs Service'', and
       (iii) by striking out ``he'' wherever it appears and 
     inserting ``it'';
       (4) by amending subsection (c)(4)--
       (A) by striking ``time of disclosure or within thirty days, 
     or such longer period as the appropriate customs officer may 
     provide, after notice by the appropriate customs officer of 
     his'' in subparagraph (A)(i) and by striking out ``time of 
     disclosure in 30 days, or such longer period as the 
     appropriate customs officer may provide, after notice by the 
     appropriate customs officer of his'' in subparagraph (B), and 
     inserting in each place ``time of disclosure, or within 30 
     days (or such longer period as the Customs Service may 
     provide) after notice by the Customs Service of its''; and
       (B) by inserting after the last sentence the following: 
     ``For purposes of this section, a formal investigation of a 
     violation is considered to be commenced with regard to the 
     disclosing party and the disclosed information on the date 
     recorded in writing by the Customs Service as the date on 
     which facts and circumstances were discovered or information 
     was received which caused the Customs Service to believe that 
     a possibility of a violation of subsection (a) existed.''; 
     and
       (5) by amending subsection (d)--
       (A) by striking out ``the appropriate customs officer'' and 
     inserting ``the Customs Service'',
       (B) by striking out ``duties'' wherever it appears and 
     inserting ``duties, taxes, or fees'', and
       (C) by inserting ``, Taxes or Fees'' after ``Duties'' in 
     the sideheading.

     SEC. 622. PENALTIES FOR FALSE DRAWBACK CLAIMS.

       (a) Amendment.--Part V of title IV is amended by inserting 
     after section 593 the following new section:

     ``SEC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS.

       ``(a) Prohibition.--
       ``(1) General rule.--No person, by fraud, or negligence--
       ``(A) may seek, induce or affect, or attempt to seek, 
     induce, or affect, the payment or credit to that person or 
     others of any drawback claim by means of--
       ``(i) any document, written or oral statement, or 
     electronically transmitted data or information, or act which 
     is material and false, or
       ``(ii) any omission which is material; or
       ``(B) may aid or abet any other person to violate 
     subparagraph (A).
       ``(2) Exception.--Clerical errors or mistakes of fact are 
     not violations of paragraph (1) unless they are part of a 
     pattern of negligent conduct. The mere nonintentional 
     repetition by an electronic system of an initial clerical 
     error does not constitute a pattern of negligent conduct.
       ``(b) Procedures.--
       ``(1) Prepenalty notice.--
       ``(A) In general.--If the Customs Service has reasonable 
     cause to believe that there has been a violation of 
     subsection (a) and determines that further proceedings are 
     warranted, the Customs Service shall issue to the person 
     concerned a written notice of intent to issue a claim for a 
     monetary penalty. Such notice shall--
       ``(i) identify the drawback claim;
       ``(ii) set forth the details relating to the seeking, 
     inducing, or affecting, or the attempted seeking, inducing, 
     or affecting, or the aiding or procuring of, the drawback 
     claim;
       ``(iii) specify all laws and regulations allegedly 
     violated;
       ``(iv) disclose all the material facts which establish the 
     alleged violation;
       ``(v) state whether the alleged violation occurred as a 
     result of fraud or negligence;
       ``(vi) state the estimated actual or potential loss of 
     revenue due to the drawback claim, and, taking into account 
     all circumstances, the amount of the proposed monetary 
     penalty; and
       ``(vii) inform such person that he shall have a reasonable 
     opportunity to make representations, both oral and written, 
     as to why a claim for a monetary penalty should not be issued 
     in the amount stated.
       ``(B) Exceptions.--The Customs Service may not issue a 
     prepenalty notice if the amount of the penalty in the penalty 
     claim issued under paragraph (2) is $1,000 or less. In such 
     cases, the Customs Service may proceed directly with a 
     penalty claim.
       ``(C) Prior approval.--No prepenalty notice in which the 
     alleged violation occurred as a result of fraud shall be 
     issued without the prior approval of Customs Headquarters.
       ``(2) Penalty claim.--After considering representations, if 
     any, made by the person concerned pursuant to the notice 
     issued under paragraph (1), the Customs Service shall 
     determine whether any violation of subsection (a), as alleged 
     in the notice, has occurred. If the Customs Service 
     determines that there was no violation, the Customs Service 
     shall promptly issue a written statement of the determination 
     to the person to whom the notice was sent. If the Customs 
     Service determines that there was a violation, Customs shall 
     issue a written penalty claim to such person. The written 
     penalty claim shall specify all changes in the information 
     provided under clauses (i) through (vii) of paragraph (1)(A). 
     Such person shall have a reasonable opportunity under section 
     618 to make representations, both oral and written, seeking 
     remission or mitigation of the monetary penalty. At the 
     conclusion of any proceeding under section 618, the Customs 
     Service shall provide to the person concerned a written 
     statement which sets forth the final determination, and the 
     findings of fact and conclusions of law on which such 
     determination is based.
       ``(c) Maximum Penalties.--
       ``(1) Fraud.--A fraudulent violation of subsection (a) of 
     this section is punishable by a civil penalty in an amount 
     not to exceed 3 times the actual or potential loss of 
     revenue.
       ``(2) Negligence.--
       ``(A) In general.--A negligent violation of subsection (a) 
     is punishable by a civil penalty in an amount not to exceed 
     20 percent of the actual or potential loss of revenue for the 
     1st violation.
       ``(B) Repetitive violations.--If the Customs Service 
     determines that a repeat negligent violation occurs relating 
     to the same issue, the penalty amount for the 2d violation 
     shall be in an amount not to exceed 50 percent of the total 
     actual or potential loss of revenue. The penalty amount for 
     each succeeding repetitive negligent violation shall be in an 
     amount not to exceed the actual or potential loss of revenue. 
     If the same party commits a nonrepetitive violation, that 
     violation shall be subject to a penalty not to exceed 20 
     percent of the actual or potential loss of revenue.
       ``(3) Prior disclosure.--
       ``(A) In general.--Subject to subparagraph (B), if the 
     person concerned discloses the circumstances of a violation 
     of subsection (a) before, or without knowledge of the 
     commencement of, a formal investigation of such violation, 
     the monetary penalty assessed under this subsection may not 
     exceed--
       ``(i) if the violation resulted from fraud, an amount equal 
     to the actual or potential revenue of which the United States 
     is or may be deprived as a result of overpayment of the 
     claim; or
       ``(ii) if the violation resulted from negligence, an amount 
     equal to the interest computed on the basis of the prevailing 
     rate of interest applied under section 6621 of the Internal 
     Revenue Code of 1986 on the amount of actual revenue of which 
     the United States is or may be deprived during the period 
     that--

       ``(I) begins on the date of the overpayment of the claim; 
     and
       ``(II) ends on the date on which the person concerned 
     tenders the amount of the overpayment.

       ``(B) Condition affecting penalty limitations.--The 
     limitations in subparagraph (A) on the amount of the monetary 
     penalty to be assessed under subsection (c) apply only if the 
     person concerned tenders the amount of the overpayment made 
     on the claim at the time of disclosure, or within 30 days (or 
     such longer period as the Customs Service may provide), after 
     notice by the Customs Service of its calculation of the 
     amount of the overpayment.
       ``(C) Burden of proof.--The person asserting lack of 
     knowledge of the commencement of a formal investigation has 
     the burden of proof in establishing such lack of knowledge.
       ``(4) Commencement of investigation.--For purposes of this 
     section, a formal investigation of a violation is considered 
     to be commenced with regard to the disclosing party and the 
     disclosed information on the date recorded in writing by the 
     Customs Service as the date on which facts and circumstances 
     were discovered or information was received which caused the 
     Customs Service to believe that a possibility of a violation 
     of subsection (a) existed.
       ``(5) Exclusivity.--Penalty claims under this section shall 
     be the exclusive civil remedy for any drawback related 
     violation of subsection (a).
       ``(d) Deprivation of Lawful Revenue.--Notwithstanding 
     section 514, if the United States has been deprived of lawful 
     duties and taxes resulting from a violation of subsection 
     (a), the Customs Service shall require that such duties and 
     taxes be restored whether or not a monetary penalty is 
     assessed.
       ``(e) Drawback Compliance Program.--
       ``(1) In general.--After consultation with the drawback 
     trade community, the Customs Service shall establish a 
     drawback compliance program in which claimants and other 
     parties in interest may participate after being certified by 
     the Customs Service under paragraph (2). Participation in the 
     drawback compliance program is voluntary.
       ``(2) Certification.--A party may be certified as a 
     participant in the drawback compliance program after meeting 
     the general requirements established under the program or 
     after negotiating an alternative program suited to the needs 
     of the party and the Customs Service. Certification 
     requirements shall take into account the size and nature of 
     the party's drawback program and the volume of claims. In 
     order to be certified, the participant must be able to 
     demonstrate that it--
       ``(A) understands the legal requirements for filing claims, 
     including the nature of the records required to be maintained 
     and produced and the time periods involved;
       ``(B) has in place procedures to explain the Customs 
     Service requirements to those employees that are involved in 
     the preparation of claims, and the maintenance and production 
     of required records;
       ``(C) has in place procedures regarding the preparation of 
     claims and maintenance of required records, and the 
     production of such records to the Customs Service;
       ``(D) has designated a dependable individual or individuals 
     to be responsible for compliance under the program and whose 
     duties include maintaining familiarity with the drawback 
     requirements of the Customs Service;
       ``(E) has a record maintenance procedure approved by the 
     Customs Service for original records, or, if approved by the 
     Customs Service, for alternate records or recordkeeping 
     formats other than the original records; and
       ``(F) has procedures for notifying the Customs Service of 
     variances to, and violations of, the requirements of the 
     drawback compliance program or any negotiated alternative 
     programs, and for taking corrective action when notified by 
     the Customs Service for violations or problems regarding such 
     program.
       ``(f) Alternatives to Penalties.--
       ``(1) In general.--When a party that--
       ``(A) has been certified as a participant in the drawback 
     compliance program under subsection (e); and
       ``(B) is generally in compliance with the appropriate 
     procedures and requirements of the program;
     commits a violation of subsection (a), the Customs Service, 
     shall, in the absence of fraud or repeated violations, and in 
     lieu of a monetary penalty, issue a written notice of the 
     violation to the party. Repeated violations by a party may 
     result in the issuance of penalties and removal of 
     certification under the program until corrective action, 
     satisfactory to the Customs Service, is taken.
       ``(2) Contents of notice.--A notice of violation issued 
     under paragraph (1) shall--
       ``(A) state that the party has violated subsection (a);
       ``(B) explain the nature of the violation; and
       ``(C) warn the party that future violations of subsection 
     (a) may result in the imposition of monetary penalties.
       ``(3) Response to notice.--Within a reasonable time after 
     receiving written notice under paragraph (1), the party shall 
     notify the Customs Service of the steps it has taken to 
     prevent a recurrence of the violation.
       ``(g) Repetitive Violations.--
       ``(1) A party who has been issued a written notice under 
     subsection (f)(1) and subsequently commits a repeat negligent 
     violation involving the same issue is subject to the 
     following monetary penalties:
       ``(A) 2d violation.--An amount not to exceed 20 percent of 
     the loss of revenue.
       ``(B) 3rd violation.--An amount not to exceed 50 percent of 
     the loss of revenue.
       ``(C) 4th and subsequent violations.--An amount not to 
     exceed 100 percent of the loss of revenue.
       ``(2) If a party that has been certified as a participant 
     in the drawback compliance program under subsection (e) 
     commits an alleged violation which was not repetitive, the 
     party shall be issued a `warning letter', and, for any 
     subsequent violation, shall be subject to the same maximum 
     penalty amounts stated in paragraph (1).
       ``(h) Regulation.--The Secretary shall promulgate 
     regulations and guidelines to implement this section. Such 
     regulations shall specify that for purposes of subsection 
     (g), a repeat negligent violation involving the same issue 
     shall be treated as a repetitive violation for a maximum 
     period of 3 years.
       ``(i) Court of International Trade Proceedings.--
     Notwithstanding any other provision of law, in any proceeding 
     commenced by the United States in the Court of International 
     Trade for the recovery of any monetary penalty claimed under 
     this section--
       ``(1) all issues, including the amount of the penalty, 
     shall be tried de novo;
       ``(2) if the monetary penalty is based on fraud, the United 
     States shall have the burden of proof to establish the 
     alleged violation by clear and convincing evidence; and
       ``(3) if the monetary penalty is based on negligence, the 
     United States shall have the burden of proof to establish the 
     act or omission constituting the violation, and the alleged 
     violator shall have the burden of providing evidence that the 
     act or omission did not occur as a result of negligence.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     applies to drawback claims filed on and after the nationwide 
     operational implementation of an automated drawback 
     selectivity program by the Customs Service. The Customs 
     Service shall publish notice of this date in the Customs 
     Bulletin.

     SEC. 623. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC 
                   INFORMATION.

       Section 625 (19 U.S.C. 1625) is amended to read as follows:

     ``SEC. 625. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC 
                   INFORMATION.

       ``(a) Publication.--Within 90 days after the date of 
     issuance of any interpretive ruling (including any ruling 
     letter, or internal advice memorandum) or protest review 
     decision under this chapter with respect to any customs 
     transaction, the Secretary shall have such ruling or decision 
     published in the Customs Bulletin or shall otherwise make 
     such ruling or decision available for public inspection.
       ``(b) Appeals.--A person may appeal an adverse interpretive 
     ruling and any interpretation of any regulation prescribed to 
     implement such ruling to a higher level of authority within 
     the Customs Service for de novo review. Upon a reasonable 
     showing of business necessity, any such appeal shall be 
     considered and decided no later than 60 days following the 
     date on which the appeal is filed. The Secretary shall issue 
     regulations to implement this subsection.
       ``(c) Modification and Revocation.--A proposed interpretive 
     ruling or decision which would--
       ``(1) modify (other than to correct a clerical error) or 
     revoke a prior interpretive ruling or decision which has been 
     in effect for at least 60 days; or
       ``(2) have the effect of modifying the treatment previously 
     accorded by the Customs Service to substantially identical 
     transactions;

     shall be published in the Customs Bulletin. The Secretary 
     shall give interested parties an opportunity to submit, 
     during not less than the 30-day period after the date of such 
     publication, comments on the correctness of the proposed 
     ruling or decision. After consideration of any comments 
     received, the Secretary shall publish a final ruling or 
     decision in the Customs Bulletin within 30 days after the 
     closing of the comment period. The final ruling or decision 
     shall become effective 60 days after the date of its 
     publication.
       ``(d) Publication of Customs Decisions That Limit Court 
     Decisions.--A decision that proposes to limit the application 
     of a court decision shall be published in the Customs 
     Bulletin together with notice of opportunity for public 
     comment thereon prior to a final decision.
       ``(e) Public Information.--The Secretary may make available 
     in writing or through electronic media, in an efficient, 
     comprehensive and timely manner, all information, including 
     directives, memoranda, electronic messages and telexes which 
     contain instructions, requirements, methods or advice 
     necessary for importers and exporters to comply with the 
     Customs laws and regulations. All information which may be 
     made available pursuant to this subsection shall be subject 
     to any exemption from disclosure provided by section 552 of 
     title 5, United States Code.''.

     SEC. 624. SEIZURE AUTHORITY.

       Section 596(c) (19 U.S.C. 1595a(c)) is amended to read as 
     follows:
       ``(c) Merchandise which is introduced or attempted to be 
     introduced into the United States contrary to law shall be 
     treated as follows:
       ``(1) The merchandise shall be seized and forfeited if it--
       ``(A) is stolen, smuggled, or clandestinely imported or 
     introduced;
       ``(B) is a controlled substance, as defined in the 
     Controlled Substances Act (21 U.S.C. 801 et seq.), and is not 
     imported in accordance with applicable law; or
       ``(C) is a contraband article, as defined in section 1 of 
     the Act of August 9, 1939 (49 U.S.C. App. 781).
       ``(2) The merchandise may be seized and forfeited if--
       ``(A) its importation or entry is subject to any 
     restriction or prohibition which is imposed by law relating 
     to health, safety, or conservation and the merchandise is not 
     in compliance with the applicable rule, regulation, or 
     statute;
       ``(B) its importation or entry requires a license, permit 
     or other authorization of an agency of the United States 
     Government and the merchandise is not accompanied by such 
     license, permit, or authorization;
       ``(C) it is merchandise or packaging in which copyright, 
     trademark, or trade name protection violations are involved 
     (including, but not limited to, violations of section 42, 43, 
     or 45 of the Act of July 5, 1946 (15 U.S.C. 1124, 1125, or 
     1127), section 506 or 509 of title 17, United States Code, or 
     section 2318 or 2320 of title 18, United States Code);
       ``(D) it is trade dress merchandise involved in the 
     violation of a court order citing section 43 of such Act of 
     July 5, 1946 (15 U.S.C. 1125);
       ``(E) it is merchandise which is marked intentionally in 
     violation of section 304; or
       ``(F) it is merchandise for which the importer has received 
     written notices that previous importations of identical 
     merchandise from the same supplier were found to have been 
     marked in violation of section 304.
       ``(3) If the importation or entry of the merchandise is 
     subject to quantitative restrictions requiring a visa, 
     permit, license, or other similar document, or stamp from the 
     United States Government or from a foreign government or 
     issuing authority pursuant to a bilateral or multilateral 
     agreement, the merchandise shall be subject to detention in 
     accordance with section 499 unless the appropriate visa, 
     license, permit, or similar document or stamp is presented to 
     the Customs Service; but if the visa, permit, license, or 
     similar document or stamp which is presented in connection 
     with the importation or entry of the merchandise is 
     counterfeit, the merchandise may be seized and forfeited.
       ``(4) If the merchandise is imported or introduced contrary 
     to a provision of law which governs the classification or 
     value of merchandise and there are no issues as to the 
     admissibility of the merchandise into the United States, it 
     shall not be seized except in accordance with section 592.
       ``(5) In any case where the seizure and forfeiture of 
     merchandise are required or authorized by this section, the 
     Secretary may--
       ``(A) remit the forfeiture under section 618, or
       ``(B) permit the exportation of the merchandise, unless its 
     release would adversely affect health, safety, or 
     conservation or be in contravention of a bilateral or 
     multilateral agreement or treaty.''.
            Subtitle B--National Customs Automation Program

     SEC. 631. NATIONAL CUSTOMS AUTOMATION PROGRAM.

       Part I of title IV is amended--
       (1) by striking out

                         ``PART I--DEFINITIONS

     and inserting

     ``PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM

                      ``Subpart A--Definitions'';

     and
       (2) by inserting after section 402 the following:

            ``Subpart B--National Customs Automation Program

     ``SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.

       ``(a) Establishment.--The Secretary shall establish the 
     National Customs Automation Program (hereinafter in this 
     subpart referred to as the `Program') which shall be an 
     automated and electronic system for processing commercial 
     importations and shall include the following existing and 
     planned components:
       ``(1) Existing components:
       ``(A) The electronic entry of merchandise.
       ``(B) The electronic entry summary of required information.
       ``(C) The electronic transmission of invoice information.
       ``(D) The electronic transmission of manifest information.
       ``(E) Electronic payments of duties, fees, and taxes.
       ``(F) The electronic status of liquidation and 
     reliquidation.
       ``(G) The electronic selection of high risk entries for 
     examination (cargo selectivity and entry summary 
     selectivity).
       ``(2) Planned components:
       ``(A) The electronic filing and status of protests.
       ``(B) The electronic filing (including remote filing under 
     section 414) of entry information with the Customs Service at 
     any location.
       ``(C) The electronic filing of import activity summary 
     statements and reconciliation.
       ``(D) The electronic filing of bonds.
       ``(E) The electronic penalty process.
       ``(F) The electronic filing of drawback claims, records, or 
     entries.
       ``(G) Any other component initiated by the Customs Service 
     to carry out the goals of this subpart.
       ``(b) Participation in Program.--The Secretary shall by 
     regulation prescribe the eligibility criteria for 
     participation in the Program. Participation in the Program is 
     voluntary.

     ``SEC. 412. PROGRAM GOALS.

       ``The goals of the Program are to ensure that all 
     regulations and rulings that are administered or enforced by 
     the Customs Service are administered and enforced in a manner 
     that--
       ``(1) is uniform and consistent;
       ``(2) is as minimally intrusive upon the normal flow of 
     business activity as practicable; and
       ``(3) improves compliance.

     ``SEC. 413. IMPLEMENTATION AND EVALUATION OF PROGRAM.

       ``(a) Overall Program Plan.--
       ``(1) In general.--Before the 180th day after the date of 
     the enactment of this Act, the Secretary shall develop and 
     transmit to the Committees an overall plan for the Program. 
     The overall Program plan shall set forth--
       ``(A) a general description of the ultimate configuration 
     of the Program;
       ``(B) a description of each of the existing components of 
     the Program listed in section 411(a)(1); and
       ``(C) estimates regarding the stages on which planned 
     components of the Program listed in section 411(a)(2) will be 
     brought on-line.
       ``(2) Additional information.--In addition to the 
     information required under paragraph (1), the overall Program 
     plan shall include a statement regarding--
       ``(A) the extent to which the existing components of the 
     Program currently meet, and the planned components will meet, 
     the Program goals set forth in section 412; and
       ``(B) the effects that the existing components are 
     currently having, and the effects that the planned components 
     will likely have, on--
       ``(i) importers, brokers, and other users of the Program, 
     and
       ``(ii) Customs Service occupations, operations, processes, 
     and systems.
       ``(b) Implementation Plan, Testing, and Evaluation.--
       ``(1) Implementation plan.--For each of the planned 
     components of the Program listed in section 411(a)(2), the 
     Secretary shall--
       ``(A) develop an implementation plan;
       ``(B) test the component in order to assess its viability;
       ``(C) evaluate the component in order to assess its 
     contribution toward achieving the program goals; and
       ``(D) transmit to the Committees the implementation plan, 
     the testing results, and an evaluation report.

     In developing an implementation plan under subparagraph (A) 
     and evaluating components under subparagraph (C), the 
     Secretary shall publish a request for comments in the Customs 
     Bulletin and shall consult with the trade community, 
     including importers, brokers, shippers, and other affected 
     parties.
       ``(2) Implementation.--
       ``(A) The Secretary may implement on a permanent basis any 
     Program component referred to in paragraph (1) on or after 
     the date which is 30 days after paragraph (1)(D) is complied 
     with.
       ``(B) For purposes of subparagraph (A), the 30 days shall 
     be computed by excluding--
       ``(i) the days either House is not in session because of an 
     adjournment of more than 3 days to a day certain or an 
     adjournment of the Congress sine die, and
       ``(ii) any Saturday and Sunday, not excluded under clause 
     (i), when either House is not in session.
       ``(3) Evaluation and report.--The Secretary shall--
       ``(A) develop a user satisfaction survey of parties 
     participating in the Program;
       ``(B) evaluate the results of the user satisfaction survey 
     on a biennial basis (fiscal years) and transmit a report to 
     the Committees on the evaluation by no later than the 90th 
     day after the close of each 2d fiscal year;
       ``(C) with respect to the existing Program component listed 
     in section 411(a)(1)(G) transmit to the Committees--
       ``(i) a written evaluation of such component before the 
     180th day after the date of the enactment of this section and 
     before the implementation of the planned Program components 
     listed in section 411(a)(2) (B) and (C), and
       ``(ii) a report on such component for each of the 3 full 
     fiscal years occurring after the date of the enactment of 
     this section, which report shall be transmitted not later 
     than the 90th day after the close of each such year; and
       ``(D) not later than the 90th day after the close of fiscal 
     year 1994, and annually thereafter through fiscal year 2000, 
     transmit to the Committees a written evaluation with respect 
     to the implementation and effect on users of each of the 
     planned Program components listed in section 411(a)(2).

     In carrying out the provisions of this paragraph, the 
     Secretary shall publish requests for comments in the Customs 
     Bulletin and shall consult with the trade community, 
     including importers, brokers, shippers, and other affected 
     parties.
       ``(c) Committees.--For purposes of this section, the term 
     `Committees' means the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate.

     ``SEC. 414. REMOTE LOCATION FILING.

       ``(a) Core Entry Information.--
       ``(1) In general.--A Program participant may file 
     electronically an entry of merchandise with the Customs 
     Service from a location other than the district designated in 
     the entry for examination (hereafter in this section referred 
     to as a `remote location') if--
       ``(A) the Customs Service is satisfied that the participant 
     has the capabilities referred to in paragraph (2)(A) 
     regarding such method of filing; and
       ``(B) the participant elects to file from the remote 
     location.
       ``(2) Requirements.--
       ``(A) In general.--In order to qualify for filing from a 
     remote location, a Program participant must have the 
     capability to provide, on an entry-by-entry basis, for the 
     following:
       ``(i) The electronic entry of merchandise.
       ``(ii) The electronic entry summary of required 
     information.
       ``(iii) The electronic transmission of invoice information 
     (when required by the Customs Service).
       ``(iv) The electronic payment of duties, fees, and taxes.
       ``(v) Such other electronic capabilities within the 
     existing or planned components of the Program as the 
     Secretary shall by regulation require.
       ``(B) Restriction on exemption from requirements.--The 
     Customs Service may not permit any exemption or waiver from 
     the requirements established by this section for 
     participation in remote entry filing.
       ``(3) Conditions on filing under this section.--The 
     Secretary may prohibit a Program participant from 
     participating in remote location filing, and may remove a 
     Program participant from participation in remote location 
     filing, if the participant--
       ``(i) fails to meet all the compliance requirements and 
     operational standards of remote location filing; or
       ``(ii) fails to adhere to all applicable laws and 
     regulations.
       ``(4) Alternative filing.--Any Program participant that is 
     eligible to file entry information electronically from a 
     remote location but chooses not to do so in the case of any 
     entry must file any paper documentation for the entry at the 
     designated location referred to in subsection (d).
       ``(b) Additional Entry Information.--
       ``(1) In general.--A Program participant that is eligible 
     under subsection (a) to file entry information from a remote 
     location may, if the Customs Service is satisfied that the 
     participant meets the requirements under paragraph (2), also 
     electronically file from the remote location additional 
     information that is required by the Customs Service to be 
     presented before the acceptance of entry summary information 
     and at the time of acceptance of entry summary information.
       ``(2) Requirements.--The Secretary shall publish, and 
     periodically update, a list of those capabilities within the 
     existing and planned components of the Program that a Program 
     participant must have for purposes of this subsection.
       ``(3) Filing of additional information.--
       ``(A) If information electronically acceptable.--A Program 
     participant that is eligible under paragraph (1) to file 
     additional information from a remote location shall 
     electronically file all such information that the Customs 
     Service can accept electronically.
       ``(B) Alternative filing.--If the Customs Service cannot 
     accept additional information electronically, the Program 
     participant shall file the paper documentation with respect 
     to the information at the appropriate filing location.
       ``(C) Appropriate location.--For purposes of subparagraph 
     (B), the `appropriate location' is--
       ``(i) before January 1, 1999, a designated location; and
       ``(ii) after December 31, 1998--

       ``(I) if the paper documentation is required for release, a 
     designated location; or
       ``(II) if the paper documentation is not required for 
     release, a remote location designated by the Customs Service 
     or a designated location.

       ``(D) Other.--A Program participant that is eligible under 
     paragraph (1) to file additional information electronically 
     from a remote location but chooses not to do so must file the 
     paper documentation with respect to the information at a 
     designated location.
       ``(c) Post-Entry Summary Information.--A Program 
     participant that is eligible to file electronically entry 
     information under subsection (a) and additional information 
     under subsection (b) from a remote location may file at any 
     remote location designated by the Customs Service any 
     information required by the Customs Service after entry 
     summary.
       ``(d) Definitions.--As used in this section:
       ``(1) The term `designated location' means a customs office 
     located in the customs district designated by the entry filer 
     for purposes of customs examination of the merchandise.
       ``(2) The term `Program participant' means, with respect to 
     an entry of merchandise, any party entitled to make the entry 
     under section 484(a)(2)(B).''.

     SEC. 632. DRAWBACK AND REFUNDS.

       (a) Amendments.--Section 313 (19 U.S.C. 1313) is amended as 
     follows:
       (1) Subsection (a) is amended--
       (A) by inserting ``or destruction under customs 
     supervision'' after ``Upon the exportation'';
       (B) by inserting ``provided that those articles have not 
     been used prior to such exportation or destruction,'' after 
     ``manufactured or produced in the United States with the use 
     of imported merchandise,'';
       (C) by inserting ``or destruction'' after ``refunded upon 
     the exportation''; and
       (D) by striking out ``wheat imported after ninety days 
     after the date of the enactment of this Act'' and inserting 
     ``imported wheat''.
       (2) Subsection (b) is amended--
       (A) by striking out ``duty-free or domestic merchandise'' 
     and inserting ``any other merchandise (whether imported or 
     domestic)'';
       (B) by inserting ``, or destruction under customs 
     supervision,'' after ``there shall be allowed upon the 
     exportation'';
       (C) by inserting ``or destroyed'' after ``notwithstanding 
     the fact that none of the imported merchandise may actually 
     have been used in the manufacture or production of the 
     exported'';
       (D) by inserting ``, but only if those articles have not 
     been used prior to such exportation or destruction'' after 
     ``an amount of drawback equal to that which would have been 
     allowable had the merchandise used therein been imported''; 
     and
       (E) by inserting ``or destruction under customs 
     supervision'' after ``but the total amount of drawback 
     allowed upon the exportation''.
       (3) Subsection (c) is amended to read as follows:
       ``(c) Merchandise Not Conforming to Sample or 
     Specifications.--Upon the exportation, or destruction under 
     the supervision of the Customs Service, of merchandise--
       ``(1) not conforming to sample or specifications, shipped 
     without the consent of the consignee, or determined to be 
     defective as of the time of importation;
       ``(2) upon which the duties have been paid;
       ``(3) which has been entered or withdrawn for consumption; 
     and
       ``(4) which, within 3 years after release from the custody 
     of the Customs Service, has been returned to the custody of 
     the Customs Service for exportation or destruction under the 
     supervision of the Customs Service;

     the full amount of the duties paid upon such merchandise, 
     less 1 percent, shall be refunded as drawback.''.
       (4) Subsection (j) is amended to read as follows:
       ``(j) Unused Merchandise Drawback.--
       ``(1) If imported merchandise, on which was paid any duty, 
     tax, or fee imposed under Federal law because of its 
     importation--
       ``(A) is, before the close of the 3-year period beginning 
     on the date of importation--
       ``(i) exported, or
       ``(ii) destroyed under customs supervision; and
       ``(B) is not used within the United States before such 
     exportation or destruction;

     then upon such exportation or destruction 99 percent of the 
     amount of each duty, tax, or fee so paid shall be refunded as 
     drawback. The exporter (or destroyer) has the right to claim 
     drawback under this paragraph, but may endorse such right to 
     the importer or any intermediate party.
       ``(2) If there is, with respect to imported merchandise on 
     which was paid any duty, tax, or fee imposed under Federal 
     law because of its importation, any other merchandise 
     (whether imported or domestic), that--
       ``(A) is commercially interchangeable with such imported 
     merchandise;
       ``(B) is, before the close of the 3-year period beginning 
     on the date of importation of the imported merchandise, 
     either exported or destroyed under customs supervision; and
       ``(C) before such exportation or destruction--
       ``(i) is not used within the United States, and
       ``(ii) is in the possession of, including ownership while 
     in bailment, in leased facilities, in transit to, or in any 
     other manner under the operational control of, the party 
     claiming drawback under this paragraph, if that party--

       ``(I) is the importer of the imported merchandise, or
       ``(II) received from the person who imported and paid any 
     duty due on the imported merchandise a certificate of 
     delivery transferring to the party the imported merchandise, 
     commercially interchangeable merchandise, or any combination 
     of imported and commercially interchangeable merchandise (and 
     any such transferred merchandise, regardless of its origin, 
     will be treated as the imported merchandise and any retained 
     merchandise will be treated as domestic merchandise);

     then upon the exportation or destruction of such other 
     merchandise the amount of each such duty, tax, and fee paid 
     regarding the imported merchandise shall be refunded as 
     drawback, but in no case may the total drawback on the 
     imported merchandise, whether available under this paragraph 
     or any other provision of law or any combination thereof, 
     exceed 99 percent of that duty, tax, or fee.
       ``(3) The performing of any operation or combination of 
     operations (including, but not limited to, testing, cleaning, 
     repacking, inspecting, sorting, refurbishing, freezing, 
     blending, repairing, reworking, cutting, slitting, adjusting, 
     replacing components, relabeling, disassembling, and 
     unpacking), not amounting to manufacture or production for 
     drawback purposes under the preceding provisions of this 
     section on--
       ``(A) the imported merchandise itself in cases to which 
     paragraph (1) applies, or
       ``(B) the commercially interchangeable merchandise in cases 
     to which paragraph (2) applies,

     shall not be treated as a use of that merchandise for 
     purposes of applying paragraph (1)(B) or (2)(C).''.
       (5) Subsection (l) is amended by striking out ``the fixing 
     of a time limit within which drawback entries or entries for 
     refund under any of the provisions of this section or section 
     309(b) shall be filed and completed,'' and inserting ``the 
     authority for the electronic submission of drawback 
     entries''.
       (6) Subsection (p) is amended to read as follows:
       ``(p) Substitution of Finished Petroleum Derivatives.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, if--
       ``(A) an article (hereafter referred to in this subsection 
     as the `exported article') of the same kind and quality as a 
     qualified article is exported;
       ``(B) the requirements set forth in paragraph (2) are met; 
     and
       ``(C) a drawback claim is filed regarding the exported 
     article;
     the amount of the duties paid on, or attributable to, such 
     qualified article shall be refunded as drawback to the 
     drawback claimant.
       ``(2) Requirements.--The requirements referred to in 
     paragraph (1) are as follows:
       ``(A) The exporter of the exported article--
       ``(i) manufactured or produced the qualified article in a 
     quantity equal to or greater than the quantity of the 
     exported article,
       ``(ii) purchased or exchanged, directly or indirectly, the 
     qualified article from a manufacturer or producer described 
     in subsection (a) or (b) in a quantity equal to or greater 
     than the quantity of the exported article,
       ``(iii) imported the qualified article in a quantity equal 
     to or greater than the quantity of the exported article, or
       ``(iv) purchased or exchanged, directly or indirectly, an 
     imported qualified article from an importer in a quantity 
     equal to or greater than the quantity of the exported 
     article.
       ``(B) In the case of the requirement described in 
     subparagraph (A)(ii), the manufacturer or producer produced 
     the qualified article in a quantity equal to or greater than 
     the quantity of the exported article.
       ``(C) In the case of the requirement of subparagraph (A)(i) 
     or (A)(ii), the exported article is exported during the 
     period that the qualified article described in subparagraph 
     (A)(i) or (A)(ii) (whichever is applicable) is manufactured 
     or produced, or within 180 days after the close of such 
     period.
       ``(D) In the case of the requirement of subparagraph (A)(i) 
     or (A)(ii), the specific petroleum refinery or production 
     facility which made the qualified article concerned is 
     identified.
       ``(E) In the case of the requirement of subparagraph 
     (A)(iii) or (A)(iv), the exported article is exported within 
     180 days after the date of entry of an imported qualified 
     article described in subparagraph (A)(iii) or (A)(iv) 
     (whichever is applicable).
       ``(F) Except as otherwise specifically provided in this 
     subsection, the drawback claimant complies with all 
     requirements of this section, including providing 
     certificates which establish the drawback eligibility of 
     articles for which drawback is claimed.
       ``(G) The manufacturer, producer, importer, exporter, and 
     drawback claimant of the qualified article and the exported 
     article maintain all records required by regulation.
       ``(3) Definition of qualified article, etc.--For purposes 
     of this subsection--
       ``(A) The term `qualified article' means an article--
       ``(i) described in--

       ``(I) headings 2707, 2708, 2710, 2711, 2712, 2713, 2714, 
     2715, 2901, and 2902 of the Harmonized Tariff Schedule of the 
     United States, or
       ``(II) headings 3901 through 3914 of such Schedule (as such 
     headings apply to liquids, pastes, powders, granules, and 
     flakes), and

       ``(ii) which is--

       ``(I) manufactured or produced as described in subsection 
     (a) or (b) from crude petroleum or a petroleum derivative, or
       ``(II) imported duty-paid.

       ``(B) An exported article is of the same kind and quality 
     as the qualified article for which it is substituted under 
     this subsection if it is a product that is commercially 
     interchangeable with or referred to under the same eight-
     digit classification of the Harmonized Tariff Schedule of the 
     United States as the qualified article.
       ``(C) The term `drawback claimant' means the exporter of 
     the exported article or the refiner, producer, or importer of 
     such article. Any person eligible to file a drawback claim 
     under this subparagraph may designate another person to file 
     such claim.
       ``(4) Limitation on drawback.--The amount of drawback 
     payable under this subsection shall not exceed the amount of 
     drawback that would be attributable to the article--
       ``(A) manufactured or produced under subsection (a) or (b) 
     by the manufacturer or producer described in clause (i) or 
     (ii) of paragraph (2)(A), or
       ``(B) imported under clause (iii) or (iv) of paragraph 
     (2)(A).''.
       (7) The following new subsections are inserted after 
     subsection (p):
       ``(q) Packaging Material.--Packaging material, when used on 
     or for articles or merchandise exported or destroyed under 
     subsection (a), (b), (c), or (j), shall be eligible under 
     such subsection for refund, as drawback, of 99 percent of any 
     duty, tax, or fee imposed under Federal law on the 
     importation of such material.
       ``(r) Filing Drawback Claims.--
       ``(1) A drawback entry and all documents necessary to 
     complete a drawback claim, including those issued by the 
     Customs Service, shall be filed or applied for, as 
     applicable, within 3 years after the date of exportation or 
     destruction of the articles on which drawback is claimed, 
     except that any landing certificate required by regulation 
     shall be filed within the time limit prescribed in such 
     regulation. Claims not completed within the 3-year period 
     shall be considered abandoned. No extension will be granted 
     unless it is established that the Customs Service was 
     responsible for the untimely filing.
       ``(2) A drawback entry for refund filed pursuant to any 
     subsection of this section shall be deemed filed pursuant to 
     any other subsection of this section should it be determined 
     that drawback is not allowable under the entry as originally 
     filed but is allowable under such other subsection.
       ``(s) Designation of Merchandise by Successor.--
       ``(1) For purposes of subsection (b), a drawback successor 
     may designate imported merchandise used by the predecessor 
     before the date of succession as the basis for drawback on 
     articles manufactured by the drawback successor after the 
     date of succession.
       ``(2) For purposes of subsection (j)(2), a drawback 
     successor may designate--
       ``(A) imported merchandise which the predecessor, before 
     the date of succession, imported; or
       ``(B) imported merchandise, commercially interchangeable 
     merchandise, or any combination of imported and commercially 
     interchangeable merchandise for which the successor received, 
     before the date of succession, from the person who imported 
     and paid any duty due on the imported merchandise a 
     certificate of delivery transferring to the successor such 
     merchandise;

     as the basis for drawback on merchandise possessed by the 
     drawback successor after the date of succession.
       ``(3) For purposes of this subsection, the term `drawback 
     successor' means an entity to which another entity (in this 
     subsection referred to as the `predecessor') has transferred 
     by written agreement, merger, or corporate resolution--
       ``(A) all or substantially all of the rights, privileges, 
     immunities, powers, duties, and liabilities of the 
     predecessor; or
       ``(B) the assets and other business interests of a 
     division, plant, or other business unit of such predecessor, 
     but only if in such transfer the value of the transferred 
     realty, personalty, and intangibles (other than drawback 
     rights, inchoate or otherwise) exceeds the value of all 
     transferred drawback rights, inchoate or otherwise.
       ``(4) No drawback shall be paid under this subsection until 
     either the predecessor or the drawback successor (who shall 
     also certify that it has the predecessor's records) certifies 
     that--
       ``(A) the transferred merchandise was not and will not be 
     claimed by the predecessor, and
       ``(B) the predecessor did not and will not issue any 
     certificate to any other person that would enable that person 
     to claim drawback.
       ``(t) Drawback Certificates.--Any person who issues a 
     certificate which would enable another person to claim 
     drawback shall be subject to the recordkeeping provisions of 
     this chapter, with the retention period beginning on the date 
     that such certificate is issued.
       ``(u) Eligibility of Entered or Withdrawn Merchandise.--
     Imported merchandise that has not been regularly entered or 
     withdrawn for consumption shall not satisfy any requirement 
     for use, exportation, or destruction under this section.
       ``(v) Multiple Drawback Claims.--Merchandise that is 
     exported or destroyed to satisfy any claim for drawback shall 
     not be the basis of any other claim for drawback; except that 
     appropriate credit and deductions for claims covering 
     components or ingredients of such merchandise shall be made 
     in computing drawback payments.''.
       (b) Application of Amendment to Finished Petroleum 
     Derivatives.--Notwithstanding section 514 of the Tariff Act 
     of 1930 (19 U.S.C. 1514) or any other provision of law, the 
     amendment made by paragraph (6) of subsection (a) shall apply 
     to--
       (1) claims filed or liquidated on or after January 1, 1988, 
     and
       (2) claims that are unliquidated, under protest, or in 
     litigation on the date of the enactment of this Act.

     SEC. 633. EFFECTIVE DATE OF RATES OF DUTY.

       Section 315 (19 U.S.C. 1315) is amended--
       (1) by striking out ``appropriate customs officer in the 
     form and manner prescribed by regulations of the Secretary of 
     the Treasury,'' in the first sentence of subsection (a) and 
     inserting ``Customs Service by written, electronic or such 
     other means as the Secretary by regulation shall 
     prescribe,'';
       (2) by striking out ``customs custody'' in the first 
     sentence of subsection (b) and inserting ``custody of the 
     Customs Service''; and
       (3) by striking out ``paragraph 813'' in subsection (c) and 
     inserting ``chapter 98 of the Harmonized Tariff Schedule of 
     the United States''.

     SEC. 634. DEFINITIONS.

       Section 401 (19 U.S.C. 1401) is amended--
       (1) by amending subsection (k) to read as follows:
       ``(k) The term `hovering vessel' means--
       ``(1) any vessel which is found or kept off the coast of 
     the United States within or without the customs waters, if, 
     from the history, conduct, character, or location of the 
     vessel, it is reasonable to believe that such vessel is being 
     used or may be used to introduce or promote or facilitate the 
     introduction or attempted introduction of merchandise into 
     the United States in violation of the laws of the United 
     States; and
       ``(2) any vessel which has visited a vessel described in 
     paragraph (1).''; and
       (2) by inserting at the end thereof the following new 
     subsections:
       ``(n) The term `electronic transmission' means the transfer 
     of data or information through an authorized electronic data 
     interchange system consisting of, but not limited to, 
     computer modems and computer networks.
       ``(o) The term `electronic entry' means the electronic 
     transmission to the Customs Service of--
       ``(1) entry information required for the entry of 
     merchandise, and
       ``(2) entry summary information required for the 
     classification and appraisement of the merchandise, the 
     verification of statistical information, and the 
     determination of compliance with applicable law.
       ``(p) The term `electronic data interchange system' means 
     any established mechanism approved by the Commissioner of 
     Customs through which information can be transferred 
     electronically.
       ``(q) The term `National Customs Automation Program' means 
     the program established under section 411.
       ``(r) The term `import activity summary statement' refers 
     to data or information transmitted electronically to the 
     Customs Service, in accordance with such regulations as the 
     Secretary prescribes, at the end of a specified period of 
     time which enables the Customs Service to assess properly the 
     duties, taxes and fees on merchandise imported during that 
     period, collect accurate statistics and determine whether any 
     other applicable requirement of law (other than a requirement 
     relating to release from customs custody) is met.
       ``(s) The term `reconciliation' means an electronic 
     process, initiated at the request of an importer, under which 
     the elements of an entry, other than those elements related 
     to the admissibility of the merchandise, that are 
     undetermined at the time of entry summary are provided to the 
     Customs Service at a later time. A reconciliation is treated 
     as an entry for purposes of liquidation, reliquidation, and 
     protest.''.

     SEC. 635. MANIFESTS.

       Section 431 (19 U.S.C. 1431) is amended--
       (1) by amending subsections (a) and (b) to read as follows:
       ``(a) In General.--Every vessel required to make entry 
     under section 434 or obtain clearance under section 4197 of 
     the Revised Statutes of the United States (46 U.S.C. App. 91) 
     shall have a manifest that complies with the requirements 
     prescribed under subsection (d).
       ``(b) Production of Manifest.--Any manifest required by the 
     Customs Service shall be signed, produced, delivered or 
     electronically transmitted by the master or person in charge 
     of the vessel, aircraft, or vehicle, or by any other 
     authorized agent of the owner or operator of the vessel, 
     aircraft, or vehicle in accordance with the requirements 
     prescribed under subsection (d). A manifest may be 
     supplemented by bill of lading data supplied by the issuer of 
     such bill. If any irregularity of omission or commission 
     occurs in any way in respect to any manifest or bill of 
     lading data, the owner or operator of the vessel, aircraft or 
     vehicle, or any party responsible for such irregularity, 
     shall be liable for any fine or penalty prescribed by law 
     with respect to such irregularity. The Customs Service may 
     take appropriate action against any of the parties.''; and
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Regulations.--
       ``(1) In general.--The Secretary shall by regulation--
       ``(A) specify the form for, and the information and data 
     that must be contained in, the manifest required by 
     subsection (a);
       ``(B) allow, at the option of the individual producing the 
     manifest and subject to paragraph (2), letters and documents 
     shipments to be accounted for by summary manifesting 
     procedures;
       ``(C) prescribe the manner of production for, and the 
     delivery for electronic transmittal of, the manifest required 
     by subsection (a); and
       ``(D) prescribe the manner for supplementing manifests with 
     bill of lading data under subsection (b).
       ``(2) Letters and documents shipments.--For purposes of 
     paragraph (1)(B)--
       ``(A) the Customs Service may require with respect to 
     letters and documents shipments--
       ``(i) that they be segregated by country of origin, and
       ``(ii) additional examination procedures that are not 
     necessary for individually manifested shipments;
       ``(B) standard letter envelopes and standard document packs 
     shall be segregated from larger document shipments for 
     purposes of customs inspections; and
       ``(C) the term `letters and documents' means--
       ``(i) data described in General Headnote 4(c) of the 
     Harmonized Tariff Schedule of the United States,
       ``(ii) securities and similar evidences of value described 
     in heading 4907 of such Schedule, but not monetary 
     instruments defined pursuant to chapter 53 of title 31, 
     United States Code, and
       ``(iii) personal correspondence, whether on paper, cards, 
     photographs, tapes, or other media.''.

     SEC. 636. INVOICE CONTENTS.

       Section 481 (19 U.S.C. 1481) is amended--
       (1) by amending subsection (a)--
       (A) by amending the matter preceding paragraph (1) to read 
     as follows: ``In General.--All invoices of merchandise to be 
     imported into the United States and any electronic equivalent 
     thereof considered acceptable by the Secretary in regulations 
     prescribed under this section shall set forth, in written, 
     electronic, or such other form as the Secretary shall 
     prescribe, the following:'',
       (B) by amending paragraph (3) to read as follows:
       ``(3) A detailed description of the merchandise, including 
     the commercial name by which each item is known, the grade or 
     quality, and the marks, numbers, or symbols under which sold 
     by the seller or manufacturer in the country of exportation, 
     together with the marks and numbers of the packages in which 
     the merchandise is packed;'', and
       (C) by amending paragraph (10) to read as follows:
       ``(10) Any other fact that the Secretary may by regulation 
     require as being necessary to a proper appraisement, 
     examination and classification of the merchandise.'';
       (2) by amending subsection (c) to read as follows:
       ``(c) Importer Provision of Information.--Any information 
     required to be set forth on an invoice may alternatively be 
     provided by any of the parties qualifying as an `importer of 
     record' under section 484(a)(2)(B) by such means, in such 
     form or manner, and within such time as the Secretary shall 
     by regulation prescribe.''; and
       (3) by inserting before the period at the end of subsection 
     (d) the following: ``and may allow for the submission or 
     electronic transmission of partial invoices, electronic 
     equivalents of invoices, bills, or other documents or parts 
     thereof, required under this section''.

     SEC. 637. ENTRY OF MERCHANDISE.

       (a) Amendments to Section 484.--Section 484 (19 U.S.C. 
     1484) is amended to read as follows:

     ``SEC. 484. ENTRY OF MERCHANDISE.

       ``(a) Requirement and Time.--
       ``(1) Except as provided in sections 490, 498, 552, 553, 
     and 336(j), one of the parties qualifying as `importer of 
     record' under paragraph (2)(B), either in person or by an 
     agent authorized by the party in writing, shall, using 
     reasonable care--
       ``(A) make entry therefor by filing with the Customs 
     Service--
       ``(i) such documentation or, pursuant to an electronic data 
     interchange system, such information as is necessary to 
     enable the Customs Service to determine whether the 
     merchandise may be released from customs custody, and
       ``(ii) notification whether an import activity summary 
     statement will be filed; and
       ``(B) complete the entry by filing with the Customs Service 
     the declared value, classification and rate of duty 
     applicable to the merchandise, and such other documentation 
     or, pursuant to an electronic data interchange system, such 
     other information as is necessary to enable the Customs 
     Service to--
       ``(i) properly assess duties on the merchandise,
       ``(ii) collect accurate statistics with respect to the 
     merchandise, and
       ``(iii) determine whether any other applicable requirement 
     of law (other than a requirement relating to release from 
     customs custody) is met.
       ``(2)(A) The documentation or information required under 
     paragraph (1) with respect to any imported merchandise shall 
     be filed or transmitted in such manner and within such time 
     periods as the Secretary shall by regulation prescribe. Such 
     regulations shall provide for the filing of import activity 
     summary statements, covering entries or warehouse withdrawals 
     made during a calendar month, within such time period as is 
     prescribed in regulations but not to exceed the 20th day 
     following such calendar month.
       ``(B) When an entry of merchandise is made under this 
     section, the required documentation or information shall be 
     filed or electronically transmitted either by the owner or 
     purchaser of the merchandise or, when appropriately 
     designated by the owner, purchaser, or consignee of the 
     merchandise, a person holding a valid license under section 
     641. When a consignee declares on entry that he is the owner 
     or purchaser of merchandise the Customs Service may, without 
     liability, accept the declaration. For the purposes of this 
     Act, the importer of record must be one of the parties who is 
     eligible to file the documentation or information required by 
     this section.
       ``(C) The Secretary, in prescribing regulations to carry 
     out this subsection, shall establish procedures which insure 
     the accuracy and timeliness of import statistics, 
     particularly statistics relevant to the classification and 
     valuation of imports. Corrections of errors in such 
     statistical data shall be transmitted immediately to the 
     Director of the Bureau of the Census, who shall make 
     corrections in the statistics maintained by the Bureau. The 
     Secretary shall also provide, to the maximum extent 
     practicable, for the protection of the revenue, the 
     enforcement of laws governing the importation and exportation 
     of merchandise, the facilitation of the commerce of the 
     United States, and the equal treatment of all importers of 
     record of imported merchandise.
       ``(b) Reconciliation.--
       ``(1) In general.--A party that electronically transmits an 
     entry summary or import activity summary statement may at the 
     time of filing such summary or statement notify the Customs 
     Service of his intention to file a reconciliation pursuant to 
     such regulations as the Secretary may prescribe. Such 
     reconciliation must be filed by the importer of record within 
     such time period as is prescribed by regulation but no later 
     than 15 months following the filing of the entry summary or 
     import activity summary statement; except that the prescribed 
     time period for reconciliation issues relating to the 
     assessment of antidumping and countervailing duties shall 
     require filing no later than 90 days after the Customs 
     Service advises the importer that a period of review for 
     antidumping or countervailing duty purposes has been 
     completed. Before filing a reconciliation, an importer of 
     record shall post bond or other security pursuant to such 
     regulations as the Secretary may prescribe.
       ``(2) Regulations regarding ad/cv duties.--The Secretary 
     shall prescribe, in consultation with the Secretary of 
     Commerce, such regulations as are necessary to adapt the 
     reconciliation process for use in the collection of 
     antidumping and countervailing duties.
       ``(c) Release of Merchandise.--The Customs Service may 
     permit the entry and release of merchandise from customs 
     custody in accordance with such regulations as the Secretary 
     may prescribe. No officer of the Customs Service shall be 
     liable to any person with respect to the delivery of 
     merchandise released from customs custody in accordance with 
     such regulations.
       ``(d) Signing and Contents.--Entries shall be signed by the 
     importer of record, or his agent, unless filed pursuant to an 
     electronic data interchange system. If electronically filed, 
     each transmission of data shall be certified by an importer 
     of record or his agent, one of whom shall be resident in the 
     United States for purposes of receiving service of process, 
     as being true and correct to the best of his knowledge and 
     belief, and such transmission shall be binding in the same 
     manner and to the same extent as a signed document. The entry 
     shall set forth such facts in regard to the importation as 
     the Secretary may require and shall be accompanied by such 
     invoices, bills of lading, certificates, and documents, or 
     their electronically submitted equivalents, as are required 
     by regulation.
       ``(e) Production of Invoice.--The Secretary may provide by 
     regulation for the production of an invoice, parts thereof, 
     or the electronic equivalents thereof, in such manner and 
     form, and under such terms and conditions, as the Secretary 
     considers necessary.
       ``(f) Statistical Enumeration.--The Secretary, the 
     Secretary of Commerce, and the United States International 
     Trade Commission shall establish from time to time for 
     statistical purposes an enumeration of articles in such 
     detail as in their judgment may be necessary, comprehending 
     all merchandise imported into the United States and exported 
     from the United States, and shall seek, in conjunction with 
     statistical programs for domestic production and programs for 
     achieving international harmonization of trade statistics, to 
     establish the comparability thereof with such enumeration of 
     articles. All import entries and export declarations shall 
     include or have attached thereto an accurate statement 
     specifying, in terms of such detailed enumeration, the kinds 
     and quantities of all merchandise imported and exported and 
     the value of the total quantity of each kind of article.
       ``(g) Statement of Cost of Production.--Under such 
     regulations as the Secretary may prescribe, the Customs 
     Service may require a verified statement from the 
     manufacturer or producer showing the cost of producing the 
     imported merchandise, if the Customs Service considers such 
     verification necessary for the appraisement of such 
     merchandise.
       ``(h) Admissibility of Data Electronically Transmitted.--
     Any entry or other information transmitted by means of an 
     authorized electronic data interchange system shall be 
     admissible in any and all administrative and judicial 
     proceedings as evidence of such entry or information.''.
       (b) Amendment to Section 771.--Section 771 (19 U.S.C. 1677) 
     is amended by adding at the end the following new paragraph:
       ``(23) Entry.--The term `entry' includes, in appropriate 
     circumstances as determined by the administering authority, a 
     reconciliation entry created under a reconciliation process, 
     defined in section 401(s), that is initiated by an importer. 
     The liability of an importer under an antidumping or 
     countervailing duty proceeding for entries of merchandise 
     subject to the proceeding will attach to the corresponding 
     reconciliation entry or entries. Suspension of liquidation of 
     the reconciliation entry or entries, for the purpose of 
     enforcing this title, is equivalent to the suspension of 
     liquidation of the corresponding individual entries; but the 
     suspension of liquidation of the reconciliation entry or 
     entries for such purpose does not preclude liquidation for 
     any other purpose.''.

     SEC. 638. APPRAISEMENT AND OTHER PROCEDURES.

       Section 500 (19 U.S.C. 1500) is amended--
       (1) by striking out ``The appropriate customs officer'' and 
     inserting ``The Customs Service'';
       (2) by striking out ``appraise'' in subsection (a) and 
     inserting ``fix the final appraisement of'';
       (3) by striking out ``ascertain the'' in subsection (b) and 
     inserting ``fix the final'';
       (4) by amending subsection (c)--
       (A) by inserting ``final'' after ``fix the'', and
       (B) by inserting ``, taxes, and fees'' after ``duties'' 
     wherever it appears; and
       (5) by amending subsections (d) and (e) to read as follows:
       ``(d) liquidate the entry and reconciliation, if any, of 
     such merchandise; and
       ``(e) give or transmit, pursuant to an electronic data 
     interchange system, notice of such liquidation to the 
     importer, his consignee, or agent in such form and manner as 
     the Secretary shall by regulation prescribe.''.

     SEC. 639. VOLUNTARY RELIQUIDATIONS.

       Section 501 (19 U.S.C. 1501) is amended--
       (1) by striking out ``the appropriate customs officer on 
     his own initiative'' and inserting ``the Customs Service'';
       (2) by inserting ``or transmitted'' after ``given'' 
     wherever it appears; and
       (3) by amending the section heading to read as follows:

     ``SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUSTOMS 
                   SERVICE.''.

     SEC. 640. APPRAISEMENT REGULATIONS.

       Section 502 (19 U.S.C. 1502) is amended--
       (1) by amending subsection (a)--
       (A) by inserting ``(including regulations establishing 
     procedures for the issuance of binding rulings prior to the 
     entry of the merchandise concerned)'' after ``law'',
       (B) by striking out ``ports of entry, and'' inserting 
     ``ports of entry. The Secretary'',
       (C) by inserting ``or classifying'' after ``appraising'' 
     wherever it appears, and
       (D) by striking out ``such port'' and inserting ``any port, 
     and may direct any customs officer at any port to review 
     entries of merchandise filed at any other port''; and
       (2) by striking out subsection (b) and redesignating 
     subsection (c) as subsection (b).

     SEC. 641. LIMITATION ON LIQUIDATION.

       Section 504 (19 U.S.C. 1504) is amended--
       (1) by amending subsection (a)--
       (A) by striking out ``Except as provided in subsection 
     (b),'' and inserting ``Unless an entry is extended under 
     subsection (b) or suspended as required by statute or court 
     order,'',
       (B) by striking out ``or'' at the end of paragraph (2),
       (C) by inserting ``or'' after the semicolon at the end of 
     paragraph (3), and
       (D) by inserting the following new paragraph after 
     paragraph (3):
       ``(4) if a reconciliation is filed, or should have been 
     filed, the date of the filing under section 484 or the date 
     the reconciliation should have been filed;''; and
       (2) by amending subsections (b), (c), and (d) to read as 
     follows:
       ``(b) Extension.--The Secretary may extend the period in 
     which to liquidate an entry if--
       ``(1) the information needed for the proper appraisement or 
     classification of the merchandise, or for insuring compliance 
     with applicable law, is not available to the Customs Service; 
     or
       ``(2) the importer of record requests such extension and 
     shows good cause therefor.
     The Secretary shall give notice of an extension under this 
     subsection to the importer of record and the surety of such 
     importer of record. Notice shall be in such form and manner 
     (which may include electronic transmittal) as the Secretary 
     shall by regulation prescribe. Any entry the liquidation of 
     which is extended under this subsection shall be treated as 
     having been liquidated at the rate of duty, value, quantity, 
     and amount of duty asserted at the time of entry by the 
     importer of record at the expiration of 4 years from the 
     applicable date specified in subsection (a).
       ``(c) Notice of Suspension.--If the liquidation of any 
     entry is suspended, the Secretary shall by regulation require 
     that notice of the suspension be provided, in such manner as 
     the Secretary considers appropriate, to the importer of 
     record and to any authorized agent and surety of such 
     importer of record.
       ``(d) Removal of Suspension.--When a suspension required by 
     statute or court order is removed, the Customs Service shall 
     liquidate the entry within 6 months after receiving notice of 
     the removal from the Department of Commerce, other agency, or 
     a court with jurisdiction over the entry. Any entry not 
     liquidated by the Customs Service within 6 months after 
     receiving such notice shall be treated as having been 
     liquidated at the rate of duty, value, quantity, and amount 
     of duty asserted at the time of entry by the importer of 
     record.''.

     SEC. 642. PAYMENT OF DUTIES AND FEES.

       (a) Amendment to Section 505.--Section 505 (U.S.C. 1505) is 
     amended to read as follows:

     ``SEC. 505. PAYMENT OF DUTIES AND FEES.

       ``(a) Deposit of Estimated Duties, Fees, and Interest.--
     Unless merchandise is entered for warehouse or 
     transportation, or under bond, the importer of record shall 
     deposit with the Customs Service at the time of making entry, 
     or at such later time as the Secretary may prescribe by 
     regulation, the amount of duties and fees estimated to be 
     payable thereon. Such regulations may provide that estimated 
     duties and fees shall be deposited before or at the time an 
     import activity summary statement is filed. If an import 
     activity summary statement is filed, the estimated duties and 
     fees shall be deposited together with interest, at a rate 
     determined by the Secretary, accruing from the first date of 
     the month the statement is required to be filed until the 
     date such statement is actually filed.
       ``(b) Collection or Refund of Duties, Fees, and Interest 
     Due Upon Liquidation or Reliquidation.--The Customs Service 
     shall collect any increased or additional duties and fees 
     due, together with interest thereon, or refund any excess 
     moneys deposited, together with interest thereon, as 
     determined on a liquidation or reliquidation. Duties, fees, 
     and interest determined to be due upon liquidation or 
     reliquidation are due 30 days after issuance of the bill for 
     such payment. Refunds of excess moneys deposited, together 
     with interest thereon, shall be paid within 30 days of 
     liquidation or reliquidation.
       ``(c) Interest.--Interest assessed due to an underpayment 
     of duties, fees, or interest shall accrue, at a rate 
     determined by the Secretary, from the date the importer of 
     record is required to deposit estimated duties, fees, and 
     interest to the date of liquidation or reliquidation of the 
     applicable entry or reconciliation. Interest on excess moneys 
     deposited shall accrue, at a rate determined by the 
     Secretary, from the date the importer of record deposits 
     estimated duties, fees, and interest to the date of 
     liquidation or reliquidation of the applicable entry or 
     reconciliation.
       ``(d) Delinquency.--If duties, fees, and interest 
     determined to be due or refunded are not paid in full within 
     the 30-day period specified in subsection (b), any unpaid 
     balance shall be considered delinquent and bear interest by 
     30-day periods, at a rate determined by the Secretary, from 
     the date of liquidation or reliquidation until the full 
     balance is paid. No interest shall accrue during the 30-day 
     period in which payment is actually made.''.
       (b) Conforming Amendment.--Subsection (d) of section 520 
     (19 U.S.C. 1520(d)) is repealed.

     SEC. 643. ABANDONMENT AND DAMAGE.

       Section 506 (19 U.S.C. 1506) is amended--
       (1) by striking out ``the appropriate customs officer'' and 
     ``such customs officer'' wherever they appear and inserting 
     ``the Customs Service'';
       (2) by amending paragraph (1)--
       (A) by striking out ``not sent to the appraiser's stores 
     for'' and inserting ``released without an'',
       (B) by striking out ``of the examination packages or 
     quantities of merchandise'',
       (C) by striking out ``the appraiser's stores'' and 
     inserting ``the Customs Service'', and
       (D) by inserting ``or entry'' after ``invoice'', and
       (3) by amending paragraph (2)--
       (A) by inserting ``, electronically or otherwise,'' after 
     ``files'', and
       (B) by striking out ``written''.

     SEC. 644. CUSTOMS OFFICER'S IMMUNITY.

       Section 513 (19 U.S.C. 1513) is amended to read as follows:

     ``SEC. 513. CUSTOMS OFFICER'S IMMUNITY.

       ``No customs officer shall be liable in any way to any 
     person for or on account of--
       ``(1) any ruling or decision regarding the appraisement or 
     the classification of any imported merchandise or regarding 
     the duties, fees, and taxes charged thereon,
       ``(2) the collection of any dues, charges, duties, fees, 
     and taxes on or on account of any imported merchandise, or
       ``(3) any other matter or thing as to which any person 
     might under this Act be entitled to protest or appeal from 
     the decision of such officer.''.

     SEC. 645. PROTESTS.

       Section 514 (19 U.S.C. 1514) is amended--
       (1) by amending subsection (a)--
       (A) by striking out ``appropriate customs officer'' in the 
     text preceding paragraph (1) and inserting ``Customs 
     Service'',
       (B) by inserting ``or reconciliation as to the issues 
     contained therein,'' after ``entry,'' in paragraph (5),
       (C) by striking out ``and'' and inserting ``or'' at the end 
     of paragraph (6),
       (D) by striking out the comma at the end of paragraph (7) 
     and inserting a semicolon, and
       (E) by striking out ``appropriate customs officer, who'' in 
     the text following paragraph (7) and inserting ``Customs 
     Service, which'';
       (2) by amending subsection (b) by striking out 
     ``appropriate customs officer'' and inserting ``Customs 
     Service'';
       (3) by amending the first sentence of subsection (c)(1) to 
     read as follows: ``A protest of a decision made under 
     subsection (a) shall be filed in writing, or transmitted 
     electronically pursuant to an electronic data interchange 
     system, in accordance with regulations prescribed by the 
     Secretary. A protest must set forth distinctly and 
     specifically--
       ``(A) each decision described in subsection (a) as to which 
     protest is made;
       ``(B) each category of merchandise affected by each 
     decision set forth under paragraph (1);
       ``(C) the nature of each objection and the reasons 
     therefor; and
       ``(D) any other matter required by the Secretary by 
     regulation.'';
       (4) by redesignating paragraph (2) of subsection (c) as 
     paragraph (3) and by striking out ``such customs officer'' in 
     such redesignated paragraph and inserting ``the Customs 
     Service'';
       (5) by designating the last sentence of paragraph (1) of 
     subsection (c) as paragraph (2);
       (6) by striking out ``customs officer'' in subsection (d) 
     and inserting ``Customs Service''; and
       (7) by amending the section heading to read as follows:

     ``SEC. 514. PROTEST AGAINST DECISIONS OF THE CUSTOMS 
                   SERVICE.''.

     SEC. 646. REFUNDS AND ERRORS.

       Section 520 (19 U.S.C. 1520) is amended--
       (1) by inserting ``or reconciliation'' after ``entry'' in 
     paragraphs (1) and (4) of subsection (a); and
       (2) by amending subsection (c)--
       (A) by striking out ``appropriate customs officer'' 
     wherever it appears and inserting ``Customs Service'',
       (B) by inserting ``or reconciliation'' after ``reliquidate 
     an entry'', and
       (C) by inserting ``, whether or not resulting from or 
     contained in electronic transmission,'' after 
     ``inadvertence'' the first place it appears in paragraph (1).

     SEC. 647. BONDS AND OTHER SECURITY.

       Section 623 (19 U.S.C. 1623) is amended--
       (1) by inserting ``and the manner in which the bond may be 
     filed with or, pursuant to an authorized electronic data 
     interchange system, transmitted to the Customs Service'' 
     after ``form of such bond'' in subsection (b)(1); and
       (2) by inserting at the end of subsection (d) the following 
     new sentence: ``Any bond transmitted to the Customs Service 
     pursuant to an authorized electronic data interchange system 
     shall have the same force and effect and be binding upon the 
     parties thereto as if such bond were manually executed, 
     signed, and filed.''.

     SEC. 648. CUSTOMHOUSE BROKERS.

       Section 641 (19 U.S.C. 1641) is amended--
       (1) by adding at the end of subsection (a)(2) the following 
     new sentence: ``It also includes the preparation of documents 
     or forms in any format and the electronic transmission of 
     documents, invoices, bills, or parts thereof, intended to be 
     filed with the Customs Service in furtherance of such 
     activities, whether or not signed or filed by the preparer, 
     or activities relating to such preparation, but does not 
     include the mere electronic transmission of data received for 
     transmission to Customs.'';
       (2) by amending subsection (c)(1) to read as follows:
       ``(1) In general.--Each person granted a customs broker's 
     license under subsection (b) shall be issued, in accordance 
     with such regulations as the Secretary shall prescribe, 
     either or both of the following:
       ``(A) A national permit for the conduct of such customs 
     business as the Secretary prescribes by regulation.
       ``(B) A permit for each customs district in which that 
     person conducts customs business and, except as provided in 
     paragraph (2), regularly employs at least 1 individual who is 
     licensed under subsection (b)(2) to exercise responsible 
     supervision and control over the customs business conducted 
     by that person in that district.'';
       (3) by inserting at the end of subsection (c) the following 
     new paragraph:
       ``(4) Appointment of subagents.--Notwithstanding subsection 
     (c)(1), upon the implementation by the Secretary under 
     section 413(b)(2) of the component of the National Customs 
     Automation Program referred to in section 411(a)(2)(B), a 
     licensed broker may appoint another licensed broker holding a 
     permit in a customs district to act on its behalf as its 
     subagent in that district if such activity relates to the 
     filing of information that is permitted by law or regulation 
     to be filed electronically. A licensed broker appointing a 
     subagent pursuant to this paragraph shall remain liable for 
     any and all obligations arising under bond and any and all 
     duties, taxes, and fees, as well as any other liabilities 
     imposed by law, and shall be precluded from delegating to a 
     subagent such liability.'';
       (4) by amending subsection (d)(2)(B)--
       (A) by striking out ``appropriate customs officer'' and 
     inserting ``Customs Service'' in the first and third 
     sentences,
       (B) by striking out ``he'' and inserting ``it'' in the 
     third sentence,
       (C) by striking out ``15 days'' and inserting ``30 days'' 
     in the third sentence,
       (D) by striking out ``the appropriate customs officer and 
     the customs broker; they'' and inserting ``the Customs 
     Service and the customs broker; which'' in the sixth 
     sentence,
       (E) by striking out ``his'' and inserting ``the'' in the 
     seventh sentence, and
       (F) by striking out ``for his decision'' and inserting 
     ``for the decision'' in the eighth sentence; and
       (5) by amending subsection (f) by striking out ``United 
     States Customs Service.'' and inserting ``Customs Service. 
     The Secretary may not prohibit customs brokers from limiting 
     their liability to other persons in the conduct of customs 
     business. For purposes of this subsection or any other 
     provision of this Act pertaining to recordkeeping, all data 
     required to be retained by a customs broker may be kept on 
     microfilm, optical disc, magnetic tapes, disks or drums, 
     video files or any other electrically generated medium. 
     Pursuant to such regulations as the Secretary shall 
     prescribe, the conversion of data to such storage medium may 
     be accomplished at any time subsequent to the relevant 
     customs transaction and the data may be retained in a 
     centralized basis according to such broker's business 
     system.''.

     SEC. 649. CONFORMING AMENDMENTS.

       (a) Place of Entry and Unlading.--Section 447 (19 U.S.C. 
     1447) is amended by striking out ``the appropriate customs 
     officer shall consider'' and inserting ``the Customs Service 
     considers''.
       (b) Unlading.--Section 449 (19 U.S.C. 1449) is amended by 
     striking out ``appropriate customs officer of such port 
     issues a permit for the unlading of such merchandise or 
     baggage,'' and inserting ``Customs Service issues a permit 
     for the unlading of such merchandise or baggage at such 
     port,''.
     Subtitle C--Miscellaneous Amendments to the Tariff Act of 1930

     SEC. 651. ADMINISTRATIVE EXEMPTIONS.

       Section 321 (19 U.S.C. 1321) is amended--
       (1) by amending subsection (a)(1)--
       (A) by striking out ``of less than $10'' and inserting ``of 
     an amount specified by the Secretary by regulation, but not 
     less than $20,'',
       (B) by inserting ``, fees,'' after ``duties'' wherever it 
     appears, and
       (C) by striking out ``and'' at the end thereof;
       (2) by amending subsection (a)(2)--
       (A) by striking out ``shall not exceed--'' and inserting 
     ``shall not exceed an amount specified by the Secretary by 
     regulation, but not less than--'',
       (B) by striking out ``$50'' and ``$100'' in subparagraph 
     (A) and inserting ``$100'' and ``$200'', respectively,
       (C) by striking out ``$25'' in subparagraph (B) and 
     inserting ``$200'',
       (D) by striking out ``$5'' in subparagraph (C) and 
     inserting ``$200'', and
       (E) by striking the period at the end thereof and inserting 
     ``; and'', and
       (3) by inserting a new paragraph (3) at the end of 
     subsection (a) to read as follows:
       ``(3) waive the collection of duties, fees, and taxes due 
     on entered merchandise when such duties, fees, or taxes are 
     less than $20 or such greater amount as may be specified by 
     the Secretary by regulation.''; and
       (4) by amending subsection (b)--
       (A) by striking out ``to diminish any dollar amount 
     specified in subsection (a) and''; and
       (B) by striking out ``such subsection'' wherever it appears 
     and inserting ``subsection (a)''.

     SEC. 652. REPORT OF ARRIVAL.

       Section 433 (19 U.S.C. 1433) is amended--
       (1) by amending subsection (a)(1)--
       (A) by striking out ``or'' at the end of subparagraph (B),
       (B) by inserting ``or'' after the semicolon at the end of 
     subparagraph (C), and
       (C) by adding after subparagraph (C) the following:
       ``(D) any vessel which has visited a hovering vessel or 
     received merchandise while outside the territorial sea;'';
       (2) by striking out ``present to customs officers such'' in 
     subsection (d) and inserting ``present, or transmit pursuant 
     to an electronic data interchange system, to the Customs 
     Service such information, data,''; and
       (3) by amending subsection (e) to read as follows:
       ``(e) Prohibition on Departures and Discharge.--Unless 
     otherwise authorized by law, a vessel, aircraft or vehicle 
     after arriving in the United States or Virgin Islands may, 
     but only in accordance with regulations prescribed by the 
     Secretary--
       ``(1) depart from the port, place, or airport of arrival; 
     or
       ``(2) discharge any passenger or merchandise (including 
     baggage).''.

     SEC. 653. ENTRY OF VESSELS.

       Section 434 (19 U.S.C. 1434) amended to read as follows:

     ``SEC. 434. ENTRY; VESSELS.

       ``(a) Formal Entry.--Within 24 hours (or such other period 
     of time as may be provided under subsection (c)(2)) after the 
     arrival at any port or place in the United States of--
       ``(1) any vessel from a foreign port or place;
       ``(2) any foreign vessel from a domestic port;
       ``(3) any vessel of the United States having on board 
     bonded merchandise or foreign merchandise for which entry has 
     not been made; or
       ``(4) any vessel which has visited a hovering vessel or has 
     delivered or received merchandise while outside the 
     territorial sea;

     the master of the vessel shall, unless otherwise provided by 
     law, make formal entry at the nearest customs facility or 
     such other place as the Secretary may prescribe by 
     regulation.
       ``(b) Preliminary Entry.--The Secretary may by regulation 
     permit the master to make preliminary entry of the vessel 
     with the Customs Service in lieu of formal entry or before 
     formal entry is made. In permitting preliminary entry, the 
     Customs Service shall board a sufficient number of vessels to 
     ensure compliance with the laws it enforces.
       ``(c) Regulations.--The Secretary may by regulation--
       ``(1) prescribe the manner and format in which entry under 
     subsection (a) or subsection (b), or both, must be made, and 
     such regulations may provide that any such entry may be made 
     electronically pursuant to an electronic data interchange 
     system;
       ``(2) provide that--
       ``(A) formal entry must be made within a greater or lesser 
     time than 24 hours after arrival, but in no case more than 48 
     hours after arrival, and
       ``(B) formal entry may be made before arrival; and
       ``(3) authorize the Customs Service to permit entry or 
     preliminary entry of any vessel to be made at a place other 
     than a designated port of entry, under such conditions as may 
     be prescribed.''.

     SEC. 654. UNLAWFUL RETURN OF FOREIGN VESSEL PAPERS.

       Section 438 (19 U.S.C. 1438) is amended--
       (1) by striking out ``section 435'' and inserting ``section 
     434'';
       (2) by inserting ``, or regulations issued thereunder,'' 
     after ``of this Act''; and
       (3) by striking out ``the appropriate customs officer of 
     the port where such vessel has been entered.'' and inserting 
     ``the Customs Service in the port in which such vessel has 
     entered.''.

     SEC. 655. VESSELS NOT REQUIRED TO ENTER.

       Section 441 (19 U.S.C. 1441) is amended--
       (1) by amending the text preceding paragraph (1) to read as 
     follows: ``The following vessels shall not be required to 
     make entry under section 434 or to obtain clearance under 
     section 4197 of the Revised Statutes of the United States (46 
     U.S.C. App. 91):'';
       (2) by amending paragraph (3) to read as follows:
       ``(3) Any vessel carrying passengers on excursion from the 
     United States Virgin Islands to the British Virgin Islands 
     and returning, if--
       ``(A) the vessel does not in any way violate the customs or 
     navigation laws of the United States;
       ``(B) the vessel has not visited any hovering vessel; and
       ``(C) the master of the vessel, if there is on board any 
     article required by law to be entered, reports the article to 
     the Customs Service immediately upon arrival.'';
       (3) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively, and inserting after paragraph (3) 
     the following:
       ``(4) Any United States documented vessel with recreational 
     endorsement or any undocumented United States pleasure vessel 
     not engaged in trade, if--
       ``(A) the vessel complies with the reporting requirements 
     of section 433, and with the customs and navigation laws of 
     the United States;
       ``(B) the vessel has not visited any hovering vessel; and
       ``(C) the master of, and any other person on board, the 
     vessel, if the master or such person has on board any article 
     required by law to be entered or declared, reports such 
     article to the Customs Service immediately upon arrival;'';
       (4) by amending paragraph (6) (as so redesignated) by 
     striking out ``enrolled and licensed to engage in the foreign 
     and coasting trade in the northern, northeastern, and 
     northwestern frontiers'' and inserting ``documented under 
     chapter 121 of title 46, United States Code, with a Great 
     Lakes endorsement''; and
       (5) by amending the section heading to read as follows:

     ``SEC. 441. EXCEPTIONS TO VESSEL ENTRY AND CLEARANCE 
                   REQUIREMENTS.''.

     SEC. 656. UNLADING.

       Section 448(a) (19 U.S.C. 1448(a)) is amended--
       (1) by amending the first sentence--
       (A) by striking out ``enter)'' and inserting ``enter or 
     clear)'',
       (B) by striking out ``or vehicle arriving from a foreign 
     port or place'' and inserting ``required to make entry under 
     section 434, or vehicle required to report arrival under 
     section 433,'',
       (C) by inserting ``or transmitted pursuant to an electronic 
     data interchange system'' after ``issued'', and
       (D) by striking out the colon after ``officer'' and the 
     proviso and inserting a period;
       (2) by amending the second sentence--
       (A) by striking out ``, preliminary or otherwise,'', and
       (B) by inserting ``, electronically pursuant to an 
     authorized electronic data interchange system or otherwise,'' 
     after ``may issue a permit'';
       (3) by striking out the last sentence and inserting the 
     following: ``The owner or master of any vessel or vehicle, or 
     agent thereof, shall notify the Customs Service of any 
     merchandise or baggage so unladen for which entry is not made 
     within the time prescribed by law or regulation. The 
     Secretary shall by regulation prescribe administrative 
     penalties not to exceed $1,000 for each bill of lading for 
     which notice is not given. Any such administrative penalty 
     shall be subject to mitigation and remittance under section 
     618. Such unentered merchandise or baggage shall be the 
     responsibility of the master or person in charge of the 
     importing vessel or vehicle, or agent thereof, until it is 
     removed from the carrier's control in accordance with section 
     490.''; and
       (4) by striking out ``the appropriate customs officer'' and 
     ``such customs officer'' wherever they appear and inserting 
     ``the Customs Service''.

     SEC. 657. DECLARATIONS.

       Section 485 (19 U.S.C. 1485) is amended--
       (1) by amending subsection (a)--
       (A) by inserting ``or transmit electronically'' after 
     ``file'', and
       (B) by inserting ``and manner'' after ``form'';
       (2) by amending subsection (d)--
       (A) by striking out ``A importer'' and inserting ``An 
     importer'', and
       (B) by striking out ``a importer'' and inserting ``an 
     importer''; and
       (3) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Exported Merchandise Returned as Undeliverable.--With 
     respect to any importation of merchandise to which General 
     Headnote 4(e) of the Harmonized Tariff Schedule of the United 
     States applies, any person who gained any benefit from, or 
     met any obligation to, the United States as a result of the 
     prior exportation of such merchandise shall, in accordance 
     with regulations prescribed by the Secretary, within a 
     reasonable time inform the Customs Service of the return of 
     the merchandise.''.

     SEC. 658. GENERAL ORDERS.

       Section 490 (19 U.S.C. 1490) is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Incomplete Entry.--
       ``(1) Whenever--
       ``(A) the entry of any imported merchandise is not made 
     within the time provided by law or by regulation prescribed 
     by the Secretary;
       ``(B) the entry of imported merchandise is incomplete 
     because of failure to pay the estimated duties, fees, or 
     interest;
       ``(C) in the opinion of the Customs Service, the entry of 
     imported merchandise cannot be made for want of proper 
     documents or other cause; or
       ``(D) the Customs Service believes that any merchandise is 
     not correctly and legally invoiced;

     the carrier (unless subject to subsection (c)) shall notify 
     the bonded warehouse of such unentered merchandise.
       ``(2) After notification under paragraph (1), the bonded 
     warehouse shall arrange for the transportation and storage of 
     the merchandise at the risk and expense of the consignee. The 
     merchandise shall remain in the bonded warehouse until--
       ``(A) entry is made or completed and the proper documents 
     are produced;
       ``(B) the information and data necessary for entry are 
     transmitted to the Customs Service pursuant to an authorized 
     electronic data interchange system; or
       ``(C) a bond is given for the production of documents or 
     the transmittal of data.'';
       (2) by amending subsection (b)--
       (A) by amending the heading for subsection (b) to read as 
     follows:
       ``(b) Request for Possession by Customs.--'', and
       (B) by striking out ``appropriate customs officer'' and 
     inserting ``Customs Service''; and
       (3) by adding at the end the following new subsection:
       ``(c) Government Merchandise.--Any imported merchandise 
     that--
       ``(1) is described in any of paragraphs (1) through (4) of 
     subsection (a); and
       ``(2) is consigned to, or owned by, the United States 
     Government;

     shall be stored and disposed of in accordance with such rules 
     and procedures as the Secretary shall by regulation 
     prescribe.''.

     SEC. 659. UNCLAIMED MERCHANDISE.

       Section 491 (19 U.S.C. 1491) is amended--
       (1) by amending subsection (a)--
       (A) by striking out ``customs custody for one year'' in the 
     first sentence and inserting ``in a bonded warehouse pursuant 
     to section 490 for 6 months'',
       (B) by striking out ``public store or bonded warehouse for 
     a period of one year'' in the second sentence and inserting 
     ``pursuant to section 490 in a bonded warehouse for 6 
     months'',
       (C) by striking out ``estimated duties and storage'' in the 
     first sentence and inserting ``estimated duties, taxes, fees, 
     interest, storage,'',
       (D) by inserting ``taxes, fees, interest,'' after 
     ``duties,'' wherever it appears, and
       (E) by striking out ``duties'' in the last sentence and 
     inserting ``duties, taxes, interest, and fees''; and
       (2) by redesignating subsection (b) as subsection (e) and 
     inserting after subsection (a) the following new subsections:
       ``(b) Notice of Title Vesting in the United States.--At the 
     end of the 6-month period referred to in subsection (a), the 
     Customs Service may, in lieu of sale of the merchandise, 
     provide notice to all known interested parties that the title 
     to such merchandise shall be considered to vest in the United 
     States free and clear of any liens or encumbrances, on the 
     30th day after the date of the notice unless, before such 
     30th day--
       ``(1) the subject merchandise is entered or withdrawn for 
     consumption; and
       ``(2) payment is made of all duties, taxes, fees, transfer 
     and storage charges, and other expenses that may have accrued 
     thereon.
       ``(c) Retention, Transfer, Destruction, or Other 
     Disposition.--If title to any merchandise vests in the United 
     States by operation of subsection (b), such merchandise may 
     be retained by the Customs Service for official use, 
     transferred to any other Federal agency or to any State or 
     local agency, destroyed, or otherwise disposed of in 
     accordance with such regulations as the Secretary shall 
     prescribe. All transfer and storage charges or expenses 
     accruing on retained or transferred merchandise shall be paid 
     by the receiving agency.
       ``(d) Petition.--Whenever any party, having lost a 
     substantial interest in merchandise by virtue of title 
     vesting in the United States under subsection (b), can 
     establish such title or interest to the satisfaction of the 
     Secretary within 30 days after the day on which title vests 
     in the United States under subsection (b), or can establish 
     to the satisfaction of the Secretary that the party did not 
     receive notice under subsection (b), the Secretary may, upon 
     receipt of a timely and proper petition and upon finding that 
     the facts and circumstances warrant, pay such party out of 
     the Treasury of the United States the amount the Secretary 
     believes the party would have received under section 493 had 
     the merchandise been sold and a proper claim filed. The 
     decision of the Secretary with respect to any such petition 
     is final and conclusive on all parties.''; and
       (3) by amending subsection (e) (as so redesignated) by 
     striking out ``appropriate customs officer'' in paragraph (3) 
     and inserting ``Customs Service''.

     SEC. 660. DESTRUCTION OF MERCHANDISE.

       Section 492 (19 U.S.C. 1492) is amended--
       (1) by inserting ``, retained for official use, or 
     otherwise disposed of'' after ``destroyed''; and
       (2) by striking out ``appropriate customs officer'' and 
     inserting ``Customs Service''.

     SEC. 661. PROCEEDS OF SALE.

       Section 493 (19 U.S.C. 1493) is amended--
       (1) by inserting ``taxes, and fees,'' after ``duties,'';
       (2) by striking out ``by the appropriate customs officer''; 
     and
       (3) by striking out ``such customs officer'' and inserting 
     ``the Customs Service''.

     SEC. 662. ENTRY UNDER REGULATIONS.

       Section 498(a) (19 U.S.C. 1498(a)) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) Merchandise, when--
       ``(A) the aggregate value of the shipment does not exceed 
     an amount specified by the Secretary by regulation, but not 
     more than $2,500; or
       ``(B) different commercial facilitation and risk 
     considerations that may vary for different classes or kinds 
     of merchandise or different classes of transactions may 
     dictate;''; and
       (2) by striking out ``$10,000'' in paragraph (2) and 
     inserting ``such amounts as the Secretary may prescribe''.

     SEC. 663. AMERICAN TRADEMARKS.

       Section 526(e)(3) (19 U.S.C. 1526(e)(3)) is amended--
       (1) by striking out ``1 year'' and inserting ``90 days''; 
     and
       (2) by striking out ``appropriate customs officers'' and 
     inserting ``the Customs Service''.

     SEC. 664. SIMPLIFIED RECORDKEEPING FOR MERCHANDISE 
                   TRANSPORTED BY PIPELINE.

       Part IV of title IV is amended by inserting after section 
     553 the following new section:

     ``SEC. 553A. RECORDKEEPING FOR MERCHANDISE TRANSPORTED BY 
                   PIPELINE.

       ``Merchandise in Customs custody that is transported by 
     pipeline may be accounted for on a quantitative basis, based 
     on the bill of lading, or equivalent document of receipt, 
     issued by the pipeline carrier. Unless the Customs Service 
     has reasonable cause to suspect fraud, the Customs Service 
     may accept the bill of lading, or equivalent document of 
     receipt, issued by the pipeline carrier to the shipper and 
     accepted by the consignee to maintain identity. The shipper, 
     pipeline operator, and consignee shall be subject to the 
     recordkeeping requirements of sections 508 and 509.''.

     SEC. 665. ENTRY FOR WAREHOUSE.

       Section 557(a) (19 U.S.C. 1557(a)) is amended--
       (1) by designating the first 2 sentences of such subsection 
     as paragraph (1);
       (2) by striking out in such paragraph (1) (as so 
     designated) ``: Provided, That the total period of time for 
     which such merchandise may remain in bonded warehouse shall 
     not exceed 5 years from the date of importation.'' and 
     inserting the following: ``; except that--
       ``(A) the total period of time for which such merchandise 
     may remain in bonded warehouse shall not exceed 5 years from 
     the date of importation; and
       ``(B) turbine fuel may be withdrawn for use under section 
     309 without the payment of duty if an amount equal to the 
     quantity of fuel withdrawn is shown to be used within 30 days 
     after the day of withdrawal, but duties (together with 
     interest payable from the date of the withdrawal at the rate 
     of interest established under section 6621 of title 26, 
     United States Code) shall be deposited by the 40th day after 
     the day of withdrawal on fuel that was withdrawn in excess of 
     the quantity shown to have been so used during such 30-day 
     period.''; and
       (3) by designating the remaining sentences of such 
     subsection as paragraph (2).

     SEC. 666. CARTAGE.

       The first sentence of section 565 (19 U.S.C. 1565) is 
     amended to read as follows: ``The cartage of merchandise 
     entered for warehouse shall be done by--
       ``(1) cartmen appointed and licensed by the Customs 
     Service; or
       ``(2) carriers designated under section 551 to carry bonded 
     merchandise;

     who shall give bond, in a penal sum to be fixed by the 
     Customs Service, for the protection of the Government against 
     any loss of, or damage to, the merchandise while being so 
     carted.''.

     SEC. 667. SEIZURE.

       Section 612 (19 U.S.C. 1612) is amended--
       (1) by amending subsection (a)--
       (A) by striking out ``the appropriate customs officer'', 
     ``such officer'' and ``the customs officer'' wherever they 
     appear and inserting ``the Customs Service'', and
       (B) by striking out ``the appraiser's return and his'' and 
     inserting ``its''; and
       (2) by amending subsection (b) to read as follows:
       ``(b) If the Customs Service determines that the expense of 
     keeping the vessel, vehicle, aircraft, merchandise, or 
     baggage is disproportionate to the value thereof, the Customs 
     Service may promptly order the destruction or other 
     appropriate disposition of such property under regulations 
     prescribed by the Secretary. No customs officer shall be 
     liable for the destruction or other disposition of property 
     made pursuant to this section.''.

     SEC. 668. LIMITATION ON ACTIONS.

       Section 621 (19 U.S.C. 1621) is amended--
       (1) by inserting ``any duty under section 592(d), 593A(d), 
     or'' before ``any pecuniary penalty''; and
       (2) by striking out ``discovered:'' and all that follows 
     thereafter and inserting the following: ``discovered; except 
     that--
       ``(1) in the case of an alleged violation of section 592 or 
     593A, no suit or action (including a suit or action for 
     restoration of lawful duties under subsection (d) of such 
     sections) may be instituted unless commenced within 5 years 
     after the date of the alleged violation or, if such violation 
     arises out of fraud, within 5 years after the date of 
     discovery of fraud, and
       ``(2) the time of the absence from the United States of the 
     person subject to the penalty or forfeiture, or of any 
     concealment or absence of the property, shall not be reckoned 
     within the 5-year period of limitation.''.

     SEC. 669. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

       The Tariff Act of 1930 is amended by inserting after 
     section 528 the following new section:

     ``SEC. 529. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.

       ``The Customs Service shall be reimbursed from the fees 
     collected for the cost and expense, administrative and 
     otherwise, incurred in collecting any fees on behalf of any 
     government agency for any reason.''.

     SEC. 670. AUTHORITY TO SETTLE CLAIMS.

       The Tariff Act of 1930 is amended by inserting after 
     section 629 the following new section:

     ``SEC. 630. AUTHORITY TO SETTLE CLAIMS.

       ``(a) In General.--With respect to a claim that cannot be 
     settled under chapter 171 of title 28, United States Code, 
     the Secretary may settle, for not more than $50,000 in any 
     one case, a claim for damage to, or loss of, privately owned 
     property caused by an investigative or law enforcement 
     officer (as defined in section 2680(h) of title 28, United 
     States Code) who is employed by the Customs Service and 
     acting within the scope of his or her employment.
       ``(b) Limitations.--The Secretary may not pay a claim under 
     subsection (a) that--
       ``(1) concerns commercial property;
       ``(2) is presented to the Secretary more than 1 year after 
     it occurs; or
       ``(3) is presented by an officer or employee of the United 
     States Government and arose within the scope of employment.
       ``(c) Final Settlement.--A claim may be paid under this 
     section only if the claimant accepts the amount of settlement 
     in complete satisfaction of the claim.''.

     SEC. 671. USE OF PRIVATE COLLECTION AGENCIES.

       The Tariff Act of 1930 is amended by inserting after 
     section 630 the following new section:

     ``SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.

       ``(a) In General.--Notwithstanding any other provision of 
     law, the Secretary, under such terms and conditions as the 
     Secretary considers appropriate, shall enter into contracts 
     and incur obligations with one or more persons for collection 
     services to recover indebtedness arising under the customs 
     laws and owed the United States Government, but only after 
     the Customs Service has exhausted all administrative efforts, 
     including all claims against applicable surety bonds, to 
     collect the indebtedness.
       ``(b) Contract Requirements.--Any contract entered into 
     under subsection (a) shall provide that--
       ``(1) the Secretary retains the authority to resolve a 
     dispute, compromise a claim, end collection action, and refer 
     a matter to the Attorney General to bring a civil action; and
       ``(2) the person is subject to--
       ``(A) section 552a of title 5, United States Code, to the 
     extent provided in subsection (m) of such section; and
       ``(B) laws and regulations of the United States Government 
     and State governments related to debt collection 
     practices.''.
 Subtitle D--Miscellaneous Provisions and Consequential and Conforming 
                        Amendments to Other Laws

     SEC. 681. AMENDMENTS TO THE HARMONIZED TARIFF SCHEDULE.

       (a) Return Shipments.--General Note 4 of the Harmonized 
     Tariff Schedule of the United States is amended--
       (1) by striking out ``and'' at the end of subdivision (c);
       (2) by inserting ``and'' after ``1930,'' in subdivision 
     (d);
       (3) by inserting after subdivision (d) the following:
       ``(e) articles exported from the United States which are 
     returned within 45 days after such exportation from the 
     United States as undeliverable and which have not left the 
     custody of the carrier or foreign customs service,''; and
       (4) by adding at the end the following new sentence: ``No 
     exportation referred to in subdivision (e) may be treated as 
     satisfying any requirement for exportation in order to 
     receive a benefit from, or meet an obligation to, the United 
     States as a result of such exportation.''.
       (b) Entry Not Required for Locomotives and Railway Freight 
     Cars.--
       (1) The Notes to chapter 86 of such Schedule are amended by 
     inserting after note 3 the following new note:

     ``4. Railway locomotives (provided for in headings 8601 and 
     8602) and railway freight cars (provided for in heading 8606) 
     on which no duty is owed are not subject to the entry or 
     release requirements for imported merchandise set forth in 
     sections 448 and 484 of the Tariff Act of 1930. The Secretary 
     of the Treasury may by regulation establish appropriate 
     reporting requirements, including the requirement that a bond 
     be posted to ensure compliance.''.
       (2) The U.S. Notes to subchapter V of chapter 99 of such 
     Schedule are amended by inserting after note 8 the following 
     new note:

     ``9. Railway freight cars provided for in subheadings 
     9905.86.05 and 9905.86.10 are not subject to the entry or 
     release requirements for imported merchandise set forth in 
     sections 448 and 484 of the Tariff Act of 1930. The Secretary 
     of the Treasury may by regulation establish appropriate 
     reporting requirements, including the requirement that a bond 
     be posted to ensure compliance.''.
       (c) Instruments of International Traffic.--The U.S. Notes 
     to subchapter III of chapter 98 of such Schedule is amended 
     by inserting after note 3 the following new note:

     ``4. Instruments of international traffic, such as 
     containers, lift vans, rail cars and locomotives, truck cabs 
     and trailers, etc. are exempt from formal entry procedures 
     but are required to be accounted for when imported and 
     exported into and out of the United States, respectively, 
     through the manifesting procedures required for all 
     international carriers by the United States Customs Service. 
     Fees associated with the importation of such instruments of 
     international traffic shall be reported and paid on a 
     periodic basis as required by regulations issued by the 
     Secretary of the Treasury and in accordance with 1956 Customs 
     Convention on Containers (20 UST 30; TIAS 6634).''.

     SEC. 682. CUSTOMS PERSONNEL AIRPORT WORK SHIFT REGULATION.

       Section 13031(g) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(g)) is amended--
       (1) by striking out ``In addition to the regulations 
     required under paragraph (2), the'' and inserting ``The'';
       (2) by striking out paragraph (2); and
       (3) by redesignating paragraph (3) as paragraph (2).

     SEC. 683. USE OF HARBOR MAINTENANCE TRUST FUND AMOUNTS FOR 
                   ADMINISTRATIVE EXPENSES.

       (a) In General.--Paragraph (3) of section 9505(c) of the 
     Internal Revenue Code of 1986 (relating to expenditures from 
     Harbor Maintenance Trust Fund) is amended to read as follows:
       ``(3) for the payment of all expenses of administration 
     incurred by the Department of the Treasury, the Army Corps of 
     Engineers, and the Department of Commerce related to the 
     administration of subchapter A of chapter 36 (relating to 
     harbor maintenance tax), but not in excess of $5,000,000 for 
     any fiscal year.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to fiscal years beginning after the date of the 
     enactment of this Act.

     SEC. 684. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

       (a) Amendments Relating to Accreditation of Private 
     Laboratories.--Title 28 of the United States Code is amended 
     as follows:
       (1) Section 1581(g) is amended by--
       (A) striking out ``and'' at the end of paragraph (1);
       (B) by striking out the period at the end of paragraph (2) 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) any decision or order of the Customs Service to deny, 
     suspend, or revoke accreditation of a private laboratory 
     under section 499(b) of the Tariff Act of 1930.''.
       (2) Section 2631(g) is amended by inserting at the end the 
     following new paragraph:
       ``(3) A civil action to review any decision or order of the 
     Customs Service to deny, suspend, or revoke accreditation of 
     a private laboratory under section 499(b) of the Tariff Act 
     of 1930 may be commenced in the Court of International Trade 
     by the person whose accreditation was denied, suspended, or 
     revoked.''.
       (3) Section 2636 is amended--
       (A) by redesignating subsection (h) as subsection (i); and
       (B) by inserting after subsection (g) the following new 
     subsection:
       ``(h) A civil action contesting the denial, suspension, or 
     revocation by the Customs Service of a private laboratory's 
     accreditation under section 499(b) of the Tariff Act of 1930 
     is barred unless commenced in accordance with the rules of 
     the Court of International Trade within 60 days after the 
     date of the decision or order of the Customs Service.''.
       (4) Section 2640 is amended--
       (A) by redesignating subsection (d) as subsection (e); and
       (B) by inserting after subsection (c) the following new 
     subsection:
       ``(d) In any civil action commenced to review any order or 
     decision of the Customs Service under section 499(b) of the 
     Tariff Act of 1930, the court shall review the action on the 
     basis of the record before the Customs Service at the time of 
     issuing such decision or order.''.
       (5) Section 2642 is amended by inserting before the period 
     the following: ``or laboratories accredited by the Customs 
     Service under section 499(b) of the Tariff Act of 1930''.
       (b) Application of Subsection (a) Amendments.--For purposes 
     of applying the amendments made by subsection (a), any 
     decision or order of the Customs Service denying, suspending, 
     or revoking the accreditation of a private laboratory on or 
     after the date of the enactment of this Act and before 
     regulations to implement section 499(b) of the Tariff Act of 
     1930 are issued shall be treated as having been denied, 
     suspended, or revoked under such section 499(b).
       (c) Jurisdiction of Court.--Section 1582(1) of title 28, 
     United States Code, is amended by inserting ``593A,'' after 
     ``592,''.
       (d) Filing of Official Documents.--Section 2635(a) of title 
     28, United States Code, is amended to read as follows:
       ``(a) In any action commenced in the Court of International 
     Trade contesting the denial of a protest under section 515 of 
     the Tariff Act of 1930 or the denial of a petition under 
     section 516 of such Act, the Customs Service, as prescribed 
     by the rules of the court, shall file with the clerk of the 
     court, as part of the official record, any document, paper, 
     information or data relating to the entry of merchandise and 
     the administrative determination that is the subject of the 
     protest or petition.''.

     SEC. 685. TREASURY FORFEITURE FUND.

       Section 9703 of title 31, United States Code (as added by 
     Public Law 102-393), is amended--
       (1) by redesignating subparagraphs (E), (F), (G), (H), and 
     (I) of subsection (a)(2) as subparagraphs (F), (G), (H), (I), 
     and (J), respectively;
       (2) by inserting after subparagraph (D) of subsection 
     (a)(2) the following new subparagraph:
       ``(E) the payment of claims against employees of the 
     Customs Service settled by the Secretary under section 630 of 
     the Tariff Act of 1930;''; and
       (3) by striking out ``shall'' the first place it appears in 
     subsection (e) and inserting ``may''.

     SEC. 686. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED 
                   STATES.

       (a) Technical Amendments.--The Revised Statutes of the 
     United States are amended as follows:
       (1) Section 2793 (19 U.S.C. 288, 46 U.S.C. App. 111, 123) 
     is amended--
       (A) by striking out ``Enrolled or licensed vessels engaged 
     in the foreign and coasting trade on the northern, 
     northeastern, and northwestern frontiers of the United 
     States,'' and inserting ``Documented vessels with a 
     coastwise, Great Lakes endorsement,''; and
       (B) by striking out the first semicolon and all the text 
     that follows thereafter and inserting a period.
       (2) Section 3126 (19 U.S.C. 293) is amended--
       (A) by striking out ``Any vessel, on being duly registered 
     in pursuance of the laws of the United States,'' and 
     inserting ``Any United States documented vessel with a 
     registry or coastwise endorsement, or both'' and
       (B) by striking out all the text occurring after the first 
     sentence.
       (3) Section 3127 (19 U.S.C. 294) is amended by striking out 
     ``in registered vessels'' and inserting ``a United States 
     documented vessel with a registry or coastwise endorsement, 
     or both,''.
       (4) Section 4136 (46 U.S.C. App. 14) is amended by striking 
     out--
       (A) ``The Secretary of Commerce may issue a register or 
     enrollment'' and inserting ``The Secretary of Transportation 
     may issue a certificate of documentation with a coastwise 
     endorsement''; and
       (B) ``Secretary of Commerce,'' and inserting ``Secretary of 
     Transportation,''.
       (5) Section 4336 (46 U.S.C. App. 277) is amended--
       (A) by striking out ``register or enrollment or license of 
     any vessel'' and inserting ``certificate of documentation of 
     any documented vessel''; and
       (B) by striking out ``Secretary of the Treasury is not 
     required to have its register or enrollment or license'' and 
     inserting ``Secretary of Transportation is not required to 
     have its certificate of documentation''.
       (b) Clearance Requirements.--Section 4197 of such Revised 
     Statutes (46 U.S.C. App. 91) is amended to read as follows:

     ``SEC. 4197. CLEARANCE; VESSELS.

       ``(a) When Required; Vessels of the United States.--Except 
     as otherwise provided by law, any vessel of the United States 
     shall obtain clearance from the Customs Service before 
     proceeding from a port or place in the United States--
       ``(1) for a foreign port or place;
       ``(2) for another port or place in the United States if the 
     vessel has on board bonded merchandise or foreign merchandise 
     for which entry has not been made; or
       ``(3) outside the territorial sea to visit a hovering 
     vessel or to receive merchandise while outside the 
     territorial sea.
       ``(b) When Required; Other Vessels.--Except as otherwise 
     provided by law, any vessel that is not a vessel of the 
     United States shall obtain clearance from the Customs Service 
     before proceeding from a port or place in the United States--
       ``(1) for a foreign port or place;
       ``(2) for another port or place in the United States; or
       ``(3) outside the territorial sea to visit a hovering 
     vessel or to receive or deliver merchandise while outside the 
     territorial sea.
       ``(c) Regulations.--The Secretary of the Treasury may by 
     regulation--
       ``(1) prescribe the manner in which clearance under this 
     section is to be obtained, including the documents, data or 
     information which shall be submitted or transmitted, pursuant 
     to an authorized data interchange system, to obtain the 
     clearance;
       ``(2) permit the Customs Service to grant clearance for a 
     vessel under this section before all requirements for 
     clearance are complied with, but only if the owner or 
     operator of the vessel files a bond in an amount set by the 
     Secretary of the Treasury conditioned upon the compliance by 
     the owner or operator with all specified requirements for 
     clearance within a time period (not exceeding 4 business 
     days) established by the Secretary of the Treasury; and
       ``(3) authorize the Customs Service to permit clearance of 
     any vessel to be obtained at a place other than a designated 
     port of entry, under such conditions as he may prescribe.''.

     SEC. 687. AMENDMENTS TO TITLE 18, UNITED STATES CODE.

       Section 965(a) of title 18, United States Code, is 
     amended--
       (1) by striking out ``sections 91, 92, and 94 of Title 46'' 
     and inserting ``section 431 of the Tariff Act of 1930 (19 
     U.S.C. 1431) and section 4197 of the Revised Statutes of the 
     United States (46 U.S.C. App. 91),'';
       (2) by striking out ``the collector of customs for the 
     district wherein such vessel is then located'' and inserting 
     ``the Customs Service''; and
       (3) by striking out ``the collector like'' and inserting in 
     lieu thereof ``the Customs Service like''.

     SEC. 688. AMENDMENT TO THE ACT TO PREVENT POLLUTION FROM 
                   SHIPS.

       Section 9(e) of the Act to Prevent Pollution from Ships (94 
     Stat. 2301, 33 U.S.C. 1908(e)) is amended by striking out 
     ``shall refuse or revoke'' and all of the text following 
     thereafter and inserting ``shall refuse or revoke the 
     clearance required by section 4197 of the Revised Statutes of 
     the United States (46 U.S.C. App. 91). Clearance may be 
     granted upon the filing of a bond or other surety 
     satisfactory to the Secretary.''.

     SEC. 689. MISCELLANEOUS TECHNICAL AMENDMENTS.

       (a) Act of October 3, 1913.--The Act of October 3, 1913, is 
     amended--
       (1) in section IV, J, subsection 1 (19 U.S.C. 128) by 
     striking out ``registered as a vessel of the United States,'' 
     and inserting ``documented under chapter 121 of title 46, 
     United States Code,''; and
       (2) in section IV, J, subsection 3 (19 U.S.C. 131)--
       (A) by striking out ``vessels of the United States'' and 
     inserting ``United States documented vessels''; and
       (B) by striking out ``registered as a vessel of the United 
     States.'' and inserting ``documented under chapter 121 of 
     title 46, United States Code.''.
       (b) Act of August 5, 1935.--Section 4 of the Act of August 
     5, 1935 (19 U.S.C. 1704) is amended--
       (1) by striking out ``whenever the collector of customs of 
     the district in which any vessel is, or is sought to be, 
     registered, enrolled, licensed, or numbered,'' and inserting 
     ``when the Secretary of Transportation'';
       (2) by striking out ``such collector'' and inserting ``the 
     Secretary of Transportation'';
       (3) by striking out ``said collector shall revoke the 
     registry, enrollment, license, or number of such vessel'' and 
     inserting ``the Secretary of Transportation shall revoke any 
     endorsement on the vessel's certificate of documentation or 
     number (when the Secretary is the authority issuing the 
     number under chapter 123 of title 46, United States Code)''; 
     and
       (4) by striking out ``Such collector and all persons'' and 
     inserting ``The Secretary of Transportation and all 
     persons''.
       (c) Act of November 6, 1966.--Sections 2(e) and 3(e) of the 
     Act of November 6, 1966 (46 U.S.C. App. 817d(e) and 817e(e)) 
     are each amended--
       (1) by striking out ``The collector of customs at'' and 
     inserting ``At''; and
       (2) by inserting ``, the Customs Service'' after 
     ``subsection (a) of this section''.

     SEC. 690. REPEAL OF OBSOLETE PROVISIONS OF LAW.

       (a) Revised Statutes.--The following provisions of the 
     Revised Statutes of the United States are repealed:
       (1) So much of section 2792 as is codified at 19 U.S.C. 289 
     and 46 U.S.C. App. 110 and 112 (as in effect on the date of 
     the enactment of this Act).
       (2) Section 3111 (19 U.S.C. 282).
       (3) Section 3118 (19 U.S.C. 286).
       (4) Section 3119 (19 U.S.C. 287).
       (5) Section 3122 (19 U.S.C. 290).
       (6) Section 3124 (19 U.S.C. 291).
       (7) Section 3125 (19 U.S.C. 292).
       (8) Section 4198 (46 U.S.C. App. 94).
       (9) Section 4199 (46 U.S.C. App. 93).
       (10) Section 4201 (46 U.S.C. App. 96).
       (11) Section 4207.
       (12) Section 4208 (46 U.S.C. App. 102).
       (13) Section 4213 (46 U.S.C. App. 101).
       (14) So much of section 4221 as is codified at 46 U.S.C. 
     App. 113 (as in effect on the date of the enactment of this 
     Act).
       (15) Section 4222 (46 U.S.C. App. 126).
       (16) Sections 4306, 4307, and 4308 (46 U.S.C. App. 351 
     through 353).
       (17) Section 4332 (46 U.S.C. App. 274).
       (18) Section 4348 (46 U.S.C. App. 293).
       (19) Section 4358 (46 U.S.C. App. 306).
       (20) Section 4361 (46 U.S.C. App. 307).
       (21) Sections 4362 through 4369 (46 U.S.C. App. 308 through 
     315).
       (22) Sections 4573 through 4576 (46 U.S.C. App. 674 through 
     677).
       (b) Tariff Act of 1930.--The following sections of the 
     Tariff Act of 1930 are repealed:
       (1) Section 432 (19 U.S.C. 1432).
       (2) Section 435 (19 U.S.C. 1435).
       (3) Section 437 (19 U.S.C. 1437).
       (4) Section 439 (19 U.S.C. 1439).
       (5) Section 440 (19 U.S.C. 1440).
       (6) Sections 443, 444, and 445 (19 U.S.C. 1443, 1444, and 
     1445).
       (7) Section 465 (19 U.S.C. 1465).
       (8) Section 482 (19 U.S.C. 1482).
       (9) Section 583 (19 U.S.C. 1583).
       (10) Section 585 (19 U.S.C. 1585).
       (c) Miscellaneous Provisions.--The following provisions are 
     repealed:
       (1) Section 1 of the Act of February 10, 1900 (46 U.S.C. 
     App. 131).
       (2) Section 2 of the Act of April 29, 1908 (46 U.S.C. App. 
     127).
       (3) Section 1 of the Act of July 1, 1916 (46 U.S.C. App. 
     130).
       (4) Sections 1 and 2 of the Act of July 3, 1926 (46 U.S.C. 
     App. 293a and 293b).
       (5) The last undesignated paragraph of section 201 of the 
     Act of August 5, 1935 (19 U.S.C. 1432a), is repealed.
       (6) The Act of June 16, 1937 (19 U.S.C. 1435b).
       (7) The Act of May 4, 1934 (46 U.S.C. App. 91a).
       (8) Section 1403(b) of the Water Resources Development Act 
     of 1986 (Public Law 99-662; 26 U.S.C. 4461 note).

     SEC. 691. REPORTS TO CONGRESS.

       (a) Antidumping and Countervailing Duty Collections.--The 
     Commissioner of Customs shall before the 60th day of each 
     fiscal year after fiscal year 1994 submit to Congress a 
     report regarding the collection during the preceding fiscal 
     year of duties imposed under the antidumping and 
     countervailing duty laws.
       (b) CES Fee Report.--
       (1) Amendment.--Section 9501(c) of the Omnibus Budget 
     Reconciliation Act of 1987 (19 U.S.C. 3 note) is amended by 
     adding at the end the following new paragraph:
       ``(3) The Commissioner of Customs is authorized to obtain 
     from the operators of centralized cargo examination stations 
     information regarding the fees paid to them for the provision 
     of services at these stations.''.
       (2) Report.--Within 9 months after the date of the 
     enactment of this subsection, the Commissioner of Customs 
     shall submit to the Committees referred to in section 9501(c) 
     of the Omnibus Budget Reconciliation Act of 1987, a report 
     setting forth--
       (A) an estimate of the aggregate amount of fees paid to 
     operators of centralized cargo examination stations during 
     fiscal year 1993; and
       (B) the variations, if any, among customs districts with 
     respect to the amounts of the fees charged for centralized 
     cargo examination station services.
       (c) Compliance With Customs Laws.--Section 123 of the 
     Customs and Trade Act of 1990 (19 U.S.C. 2083) is amended--
       (1) by redesignating subsection (d) as subsection (e), and
       (2) by inserting after subsection (c) the following:
       ``(d) Compliance Program.--The Commissioner of Customs 
     shall--
       ``(1) devise and implement a methodology for estimating the 
     level of compliance with the laws administered by the Customs 
     Service; and
       ``(2) include as an additional part of the report required 
     to be submitted under subsection (a) for each of fiscal years 
     1994, 1995, and 1996, an evaluation of the extent to which 
     such compliance was obtained during the 12-month period 
     preceding the 60th day before each such fiscal year.''.
       (d) Courier Services Compliance Report.--The Commissioner 
     of Customs shall initiate a compliance review of certain 
     courier services which may not be eligible for benefits under 
     the regulations of the Customs Service prescribed in part 128 
     of title 19 of the Code of Federal Regulations and shall 
     submit a report to Congress on the results of such review 
     within 1 year after the date of the enactment of this Act.

     SEC. 692. EFFECTIVE DATE.

       This title takes effect on the date of the enactment of 
     this Act.

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