[Congressional Record (Bound Edition), Volume 154 (2008), Part 4]
[Senate]
[Pages 5345-5357]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. REID (for himself, Mr. Grassley, and Mr. McConnell) (by 
        request):
  S. 2830. A bill to implement the United States-Colombia Trade 
Promotion Agreement; to the Committee on Finance pursuant to section 
2103(c) of Public Law 107-210.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2830

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``United 
     States-Colombia Trade Promotion Agreement Implementation 
     Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

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

Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and 
              initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date 
              of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Disclosure of incorrect information; false certifications of 
              origin; denial of preferential tariff treatment.
Sec. 206. Reliquidation of entries.
Sec. 207. Recordkeeping requirements.
Sec. 208. Enforcement relating to trade in textile or apparel goods.
Sec. 209. Regulations.

                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.

     Subtitle A--Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.

           Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.

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

Sec. 331. Findings and action on goods of Colombia.

                         TITLE IV--PROCUREMENT

Sec. 401. Eligible products.

                            TITLE V--OFFSETS

Sec. 501. Customs user fees.
Sec. 502. Time for payment of corporate estimated taxes.

     SEC. 2. PURPOSES.

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

     SEC. 3. DEFINITIONS.

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

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

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

       (a) Approval of Agreement and Statement of Administrative 
     Action.--Pursuant to section 2105 of the Bipartisan Trade 
     Promotion Authority Act of 2002 (19 U.S.C. 3805) and section 
     151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress 
     approves--
       (1) the United States-Colombia Trade Promotion Agreement 
     entered into on November 22, 2006, with the Government of 
     Colombia, as amended on June 28, 2007, by the United States 
     and Colombia, and submitted to Congress on April 8, 2008; and
       (2) the statement of administrative action proposed to 
     implement the Agreement that was submitted to Congress on 
     April 8, 2008.

[[Page 5346]]

       (b) Conditions for Entry Into Force of the Agreement.--At 
     such time as the President determines that Colombia has taken 
     measures necessary to comply with those provisions of the 
     Agreement that are to take effect on the date on which the 
     Agreement enters into force, the President is authorized to 
     exchange notes with the Government of Colombia providing for 
     the entry into force, on or after January 1, 2009, of the 
     Agreement with respect to the United States.

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

       (a) Relationship of Agreement to United States Law.--
       (1) United states law to prevail in conflict.--No provision 
     of the Agreement, nor the application of any such provision 
     to any person or circumstance, which is inconsistent with any 
     law of the United States shall have effect.
       (2) Construction.--Nothing in this Act shall be construed--
       (A) to amend or modify any law of the United States; or
       (B) to limit any authority conferred under any law of the 
     United States,

     unless specifically provided for in this Act.
       (b) Relationship of Agreement to State Law.--
       (1) Legal challenge.--No State law, or the application 
     thereof, may be declared invalid as to any person or 
     circumstance on the ground that the provision or application 
     is inconsistent with the Agreement, except in an action 
     brought by the United States for the purpose of declaring 
     such law or application invalid.
       (2) Definition of state law.--For purposes of this 
     subsection, the term ``State law'' includes--
       (A) any law of a political subdivision of a State; and
       (B) any State law regulating or taxing the business of 
     insurance.
       (c) Effect of Agreement With Respect to Private Remedies.--
     No person other than the United States--
       (1) shall have any cause of action or defense under the 
     Agreement or by virtue of congressional approval thereof; or
       (2) may challenge, in any action brought under any 
     provision of law, any action or inaction by any department, 
     agency, or other instrumentality of the United States, any 
     State, or any political subdivision of a State, on the ground 
     that such action or inaction is inconsistent with the 
     Agreement.

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

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

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

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

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

     SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

       (a) Establishment or Designation of Office.--The President 
     is authorized to establish or designate within the Department 
     of Commerce an office that shall be responsible for providing 
     administrative assistance to panels established under chapter 
     21 of the Agreement. The office shall 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 
     2008 to the Department of Commerce such sums as may be 
     necessary for the establishment and operations of the office 
     established or designated under subsection (a) and for the 
     payment of the United States share of the expenses of panels 
     established under chapter 21 of the Agreement.

     SEC. 106. ARBITRATION OF CLAIMS.

       The United States is authorized to resolve any claim 
     against the United States covered by article 10.16.1(a)(i)(C) 
     or article 10.16.1(b)(i)(C) of the Agreement, pursuant to the 
     Investor-State Dispute Settlement procedures set forth in 
     section B of chapter 10 of the Agreement.

     SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

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

                      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 2.3, 2.5, 2.6, 3.3.13, and Annex 
     2.3 of the Agreement.
       (2) Effect on gsp status.--Notwithstanding section 
     502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), 
     the President shall, on the date on which the Agreement 
     enters into force, terminate the designation of Colombia as a 
     beneficiary developing country for purposes of title V of the 
     Trade Act of 1974 (19 U.S.C. 2461 et seq.).
       (b) Other Tariff Modifications.--Subject to the 
     consultation and layover provisions of section 104, the 
     President may proclaim--
       (1) such modifications or continuation of any duty,
       (2) such modifications as the United States may agree to 
     with Colombia regarding the staging of any duty treatment set 
     forth in Annex 2.3 of the Agreement,
       (3) such continuation of duty-free or excise treatment, or
       (4) such additional duties,

     as the President determines to be necessary or appropriate to 
     maintain the general level of reciprocal and mutually 
     advantageous concessions with respect to Colombia provided 
     for by the Agreement.
       (c) Conversion to Ad Valorem Rates.--For purposes of 
     subsections (a) and (b), with respect to any good for which 
     the base rate in the Schedule of the United States to Annex 
     2.3 of the Agreement is a specific or compound rate of duty, 
     the President may substitute for the base rate an ad valorem 
     rate that the President determines to be equivalent to the 
     base rate.
       (d) Tariff Rate Quotas.--In implementing the tariff rate 
     quotas set forth in Appendix I to the Schedule of the United 
     States to Annex 2.3 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.

     SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

       (a) Definitions.--In this section:
       (1) Applicable ntr (mfn) rate of duty.--The term 
     ``applicable NTR (MFN) rate of duty'' means, with respect to 
     a safeguard good, a rate of duty equal to the lowest of--
       (A) the base rate in the Schedule of the United States to 
     Annex 2.3 of the Agreement;
       (B) the column 1 general rate of duty that would, on the 
     day before the date on which

[[Page 5347]]

     the Agreement enters into force, apply to a good classifiable 
     in the same 8-digit subheading of the HTS as the safeguard 
     good; or
       (C) the column 1 general rate of duty that would, at the 
     time the additional duty is imposed under subsection (b), 
     apply to a good classifiable in the same 8-digit subheading 
     of the HTS as the safeguard good.
       (2) Schedule rate of duty.--The term ``schedule rate of 
     duty'' means, with respect to a safeguard good, the rate of 
     duty for that good that is set forth in the Schedule of the 
     United States to Annex 2.3 of the Agreement.
       (3) Safeguard good.--The term ``safeguard good'' means a 
     good--
       (A) that is included in the Schedule of the United States 
     to Annex 2.18 of the Agreement;
       (B) that qualifies as an originating good under section 
     203, except that operations performed in or material obtained 
     from the United States shall be considered as if the 
     operations were performed in, and the material was obtained 
     from, a country that is not a party to the Agreement; and
       (C) for which a claim for preferential tariff treatment 
     under the Agreement has been made.
       (b) Additional Duties on Safeguard Goods.--
       (1) In general.--In addition to any duty proclaimed under 
     subsection (a) or (b) of section 201, the Secretary of the 
     Treasury shall assess a duty, in the amount determined under 
     paragraph (2), on a safeguard good imported into the United 
     States in a calendar year if the Secretary determines that, 
     prior to such importation, the total volume of that safeguard 
     good that is imported into the United States in that calendar 
     year exceeds 140 percent of the volume that is provided for 
     that safeguard good in the corresponding year in the 
     applicable table contained in Appendix I of the General Notes 
     to the Schedule of the United States to Annex 2.3 of the 
     Agreement. For purposes of this subsection, year 1 in that 
     table corresponds to the calendar year in which the Agreement 
     enters into force.
       (2) Calculation of additional duty.--The additional duty on 
     a safeguard good under this subsection shall be--
       (A) in years 1 through 4, an amount equal to 100 percent of 
     the excess of the applicable NTR (MFN) rate of duty over the 
     schedule rate of duty;
       (B) in years 5 through 7, an amount equal to 75 percent of 
     the excess of the applicable NTR (MFN) rate of duty over the 
     schedule rate of duty; and
       (C) in years 8 through 9, an amount equal to 50 percent of 
     the excess of the applicable NTR (MFN) rate of duty over the 
     schedule rate of duty.
       (3) Notice.--Not later than 60 days after the Secretary of 
     the Treasury first assesses an additional duty in a calendar 
     year on a good under this subsection, the Secretary shall 
     notify the Government of Colombia in writing of such action 
     and shall provide to that Government data supporting the 
     assessment of the additional duty.
       (c) Exceptions.--No additional duty shall be assessed on a 
     good under subsection (b) if, at the time of entry, the good 
     is subject to import relief under--
       (1) subtitle A of title III of this Act; or
       (2) chapter 1 of title II of the Trade Act of 1974 (19 
     U.S.C. 2251 et seq.).
       (d) Termination.--The assessment of an additional duty on a 
     good under subsection (b) shall cease to apply to that good 
     on the date on which duty-free treatment must be provided to 
     that good under the Schedule of the United States to Annex 
     2.3 of the Agreement.

     SEC. 203. RULES OF ORIGIN.

       (a) Application and Interpretation.--In this section:
       (1) Tariff classification.--The basis for any tariff 
     classification is the HTS.
       (2) Reference to hts.--Whenever in this section there is a 
     reference to a chapter, heading, or subheading, such 
     reference shall be a reference to a chapter, heading, or 
     subheading of the HTS.
       (3) Cost or value.--Any cost or value referred to in this 
     section shall be recorded and maintained in accordance with 
     the generally accepted accounting principles applicable in 
     the territory of the country in which the good is produced 
     (whether Colombia or the United States).
       (b) Originating Goods.--For purposes of this Act and for 
     purposes of implementing the preferential tariff treatment 
     provided for under the Agreement, except as otherwise 
     provided in this section, a good is an originating good if--
       (1) the good is a good wholly obtained or produced entirely 
     in the territory of Colombia, the United States, or both;
       (2) the good--
       (A) is produced entirely in the territory of Colombia, the 
     United States, or both, and--
       (i) each of the nonoriginating materials used in the 
     production of the good undergoes an applicable change in 
     tariff classification specified in Annex 3-A or Annex 4.1 of 
     the Agreement; or
       (ii) the good otherwise satisfies any applicable regional 
     value-content or other requirements specified in Annex 3-A or 
     Annex 4.1 of the Agreement; and
       (B) satisfies all other applicable requirements of this 
     section; or
       (3) the good is produced entirely in the territory of 
     Colombia, the United States, or both, exclusively from 
     materials described in paragraph (1) or (2).
       (c) Regional Value-Content.--
       (1) In general.--For purposes of subsection (b)(2), the 
     regional value-content of a good referred to in Annex 4.1 of 
     the Agreement, except for goods to which paragraph (4) 
     applies, shall be calculated by the importer, exporter, or 
     producer of the good, on the basis of the build-down method 
     described in paragraph (2) or the build-up method described 
     in paragraph (3).
       (2) Build-down method.--
       (A) In general.--The regional value-content of a good may 
     be calculated on the basis of the following build-down 
     method:

                                 AV-VNM

                       RVC = ------------  x 100

                                   AV

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

                                   VOM

                         RVC = --------  x 100

                                   AV

       (B) Definitions.--In subparagraph (A):
       (i) AV.--The term ``AV'' means the adjusted value of the 
     good.
       (ii) RVC.--The term ``RVC'' means the regional value-
     content of the good, expressed as a percentage.
       (iii) VOM.--The term ``VOM'' means the value of originating 
     materials that are acquired or self-produced, and used by the 
     producer in the production of the good.
       (4) Special rule for certain automotive goods.--
       (A) In general.--For purposes of subsection (b)(2), the 
     regional value-content of an automotive good referred to in 
     Annex 4.1 of the Agreement shall be calculated by the 
     importer, exporter, or producer of the good, on the basis of 
     the following net cost method:

                                 NC-VNM

                        RVC = ----------  x 100

                                   NC

       (B) Definitions.--In subparagraph (A):
       (i) Automotive good.--The term ``automotive good'' means a 
     good provided for in any of subheadings 8407.31 through 
     8407.34, subheading 8408.20, heading 8409, or any of headings 
     8701 through 8708.
       (ii) RVC.--The term ``RVC'' means the regional value-
     content of the automotive good, expressed as a percentage.
       (iii) NC.--The term ``NC'' means the net cost of the 
     automotive good.
       (iv) VNM.--The term ``VNM'' means the value of 
     nonoriginating materials that are acquired and used by the 
     producer in the production of the automotive good, but does 
     not include the value of a material that is self-produced.
       (C) Motor vehicles.--
       (i) Basis of calculation.--For purposes of determining the 
     regional value-content under subparagraph (A) for an 
     automotive good that is a motor vehicle provided for in any 
     of headings 8701 through 8705, an importer, exporter, or 
     producer may average the amounts calculated under the formula 
     contained in subparagraph (A), over the producer's fiscal 
     year--

       (I) with respect to all motor vehicles in any one of the 
     categories described in clause (ii); or
       (II) with respect to all motor vehicles in any such 
     category that are exported to the territory of the United 
     States or Colombia.

       (ii) Categories.--A category is described in this clause if 
     it--

       (I) is the same model line of motor vehicles, is in the 
     same class of motor vehicles, and is produced in the same 
     plant in the territory of Colombia or the United States, as 
     the good described in clause (i) for which regional value-
     content is being calculated;
       (II) is the same class of motor vehicles, and is produced 
     in the same plant in the territory of Colombia or the United 
     States, as the good described in clause (i) for which 
     regional value-content is being calculated; or
       (III) is the same model line of motor vehicles produced in 
     the territory of Colombia or the United States as the good 
     described in clause (i) for which regional value-content is 
     being calculated.

       (D) Other automotive goods.--For purposes of determining 
     the regional value-content under subparagraph (A) for 
     automotive materials provided for in any of subheadings 
     8407.31 through 8407.34, in subheading 8408.20, or in heading 
     8409, 8706, 8707, or 8708, that are produced in the same 
     plant, an importer, exporter, or producer may--
       (i) average the amounts calculated under the formula 
     contained in subparagraph (A) over--

       (I) the fiscal year of the motor vehicle producer to whom 
     the automotive goods are sold,

[[Page 5348]]

       (II) any quarter or month, or
       (III) the fiscal year of the producer of such goods,

     if the goods were produced during the fiscal year, quarter, 
     or month that is the basis for the calculation;
       (ii) determine the average referred to in clause (i) 
     separately for such goods sold to 1 or more motor vehicle 
     producers; or
       (iii) make a separate determination under clause (i) or 
     (ii) for such goods that are exported to the territory of 
     Colombia or the United States.
       (E) Calculating net cost.--The importer, exporter, or 
     producer of an automotive good shall, consistent with the 
     provisions regarding allocation of costs provided for in 
     generally accepted accounting principles, determine the net 
     cost of the automotive good under subparagraph (B) by--
       (i) calculating the total cost incurred with respect to all 
     goods produced by the producer of the automotive good, 
     subtracting any sales promotion, marketing, and after-sales 
     service costs, royalties, shipping and packing costs, and 
     nonallowable interest costs that are included in the total 
     cost of all such goods, and then reasonably allocating the 
     resulting net cost of those goods to the automotive good;
       (ii) calculating the total cost incurred with respect to 
     all goods produced by that producer, reasonably allocating 
     the total cost to the automotive good, and then subtracting 
     any sales promotion, marketing, and after-sales service 
     costs, royalties, shipping and packing costs, and 
     nonallowable interest costs that are included in the portion 
     of the total cost allocated to the automotive good; or
       (iii) reasonably allocating each cost that forms part of 
     the total cost incurred with respect to the automotive good 
     so that the aggregate of these costs does not include any 
     sales promotion, marketing, and after-sales service costs, 
     royalties, shipping and packing costs, or nonallowable 
     interest costs.
       (d) Value of Materials.--
       (1) In general.--For the purpose of calculating the 
     regional value-content of a good under subsection (c), and 
     for purposes of applying the de minimis rules under 
     subsection (f), the value of a material is--
       (A) in the case of a material that is imported by the 
     producer of the good, the adjusted value of the material;
       (B) in the case of a material acquired in the territory in 
     which the good is produced, the value, determined in 
     accordance with Articles 1 through 8, Article 15, and the 
     corresponding interpretive notes, of the Agreement on 
     Implementation of Article VII of the General Agreement on 
     Tariffs and Trade 1994 referred to in section 101(d)(8) of 
     the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(8)), as 
     set forth in regulations promulgated by the Secretary of the 
     Treasury providing for the application of such Articles in 
     the absence of an importation by the producer; or
       (C) in the case of a material that is self-produced, the 
     sum of--
       (i) all expenses incurred in the production of the 
     material, including general expenses; and
       (ii) an amount for profit equivalent to the profit added in 
     the normal course of trade.
       (2) Further adjustments to the value of materials.--
       (A) Originating material.--The following expenses, if not 
     included in the value of an originating material calculated 
     under paragraph (1), may be added to the value of the 
     originating material:
       (i) The costs of freight, insurance, packing, and all other 
     costs incurred in transporting the material within or between 
     the territory of Colombia, the United States, or both, to the 
     location of the producer.
       (ii) Duties, taxes, and customs brokerage fees on the 
     material paid in the territory of Colombia, the United 
     States, or both, other than duties or taxes that are waived, 
     refunded, refundable, or otherwise recoverable, including 
     credit against duty or tax paid or payable.
       (iii) The cost of waste and spoilage resulting from the use 
     of the material in the production of the good, less the value 
     of renewable scrap or byproducts.
       (B) Nonoriginating material.--The following expenses, if 
     included in the value of a nonoriginating material calculated 
     under paragraph (1), may be deducted from the value of the 
     nonoriginating material:
       (i) The costs of freight, insurance, packing, and all other 
     costs incurred in transporting the material within or between 
     the territory of Colombia, the United States, or both, to the 
     location of the producer.
       (ii) Duties, taxes, and customs brokerage fees on the 
     material paid in the territory of Colombia, the United 
     States, or both, other than duties or taxes that are waived, 
     refunded, refundable, or otherwise recoverable, including 
     credit against duty or tax paid or payable.
       (iii) The cost of waste and spoilage resulting from the use 
     of the material in the production of the good, less the value 
     of renewable scrap or byproducts.
       (iv) The cost of originating materials used in the 
     production of the nonoriginating material in the territory of 
     Colombia, the United States, or both.
       (e) Accumulation.--
       (1) Originating materials used in production of goods of 
     another country.--Originating materials from the territory of 
     Colombia or the United States that are used in the production 
     of a good in the territory of the other country shall be 
     considered to originate in the territory of such other 
     country.
       (2) Multiple producers.--A good that is produced in the 
     territory of Colombia, the United States, or both, by 1 or 
     more producers, is an originating good if the good satisfies 
     the requirements of subsection (b) and all other applicable 
     requirements of this section.
       (f) De Minimis Amounts of Nonoriginating Materials.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), a good that does not undergo a change in tariff 
     classification pursuant to Annex 4.1 of the Agreement is an 
     originating good if--
       (A)(i) the value of all nonoriginating materials that--
       (I) are used in the production of the good, and
       (II) do not undergo the applicable change in tariff 
     classification (set forth in Annex 4.1 of the Agreement),

     does not exceed 10 percent of the adjusted value of the good;
       (ii) the good meets all other applicable requirements of 
     this section; and
       (iii) the value of such nonoriginating materials is 
     included in the value of nonoriginating materials for any 
     applicable regional value-content requirement for the good; 
     or
       (B) the good meets the requirements set forth in paragraph 
     2 of Annex 4.6 of the Agreement.
       (2) Exceptions.--Paragraph (1) does not apply to the 
     following:
       (A) A nonoriginating material provided for in chapter 4, or 
     a nonoriginating dairy preparation containing over 10 percent 
     by weight of milk solids provided for in subheading 1901.90 
     or 2106.90, that is used in the production of a good provided 
     for in chapter 4.
       (B) A nonoriginating material provided for in chapter 4, or 
     a nonoriginating dairy preparation containing over 10 percent 
     by weight of milk solids provided for in subheading 1901.90, 
     that is used in the production of any of the following goods:
       (i) Infant preparations containing over 10 percent by 
     weight of milk solids provided for in subheading 1901.10.
       (ii) Mixes and doughs, containing over 25 percent by weight 
     of butterfat, not put up for retail sale, provided for in 
     subheading 1901.20.
       (iii) Dairy preparations containing over 10 percent by 
     weight of milk solids provided for in subheading 1901.90 or 
     2106.90.
       (iv) Goods provided for in heading 2105.
       (v) Beverages containing milk provided for in subheading 
     2202.90.
       (vi) Animal feeds containing over 10 percent by weight of 
     milk solids provided for in subheading 2309.90.
       (C) A nonoriginating material provided for in heading 0805, 
     or any of subheadings 2009.11 through 2009.39, that is used 
     in the production of a good provided for in any of 
     subheadings 2009.11 through 2009.39, or in fruit or vegetable 
     juice of any single fruit or vegetable, fortified with 
     minerals or vitamins, concentrated or unconcentrated, 
     provided for in subheading 2106.90 or 2202.90.
       (D) A nonoriginating material provided for in heading 0901 
     or 2101 that is used in the production of a good provided for 
     in heading 0901 or 2101.
       (E) A nonoriginating material provided for in chapter 15 
     that is used in the production of a good provided for in any 
     of headings 1501 through 1508, or any of headings 1511 
     through 1515.
       (F) A nonoriginating material provided for in heading 1701 
     that is used in the production of a good provided for in any 
     of headings 1701 through 1703.
       (G) A nonoriginating material provided for in chapter 17 
     that is used in the production of a good provided for in 
     subheading 1806.10.
       (H) Except as provided in subparagraphs (A) through (G) and 
     Annex 4.1 of the Agreement, a nonoriginating material used in 
     the production of a good provided for in any of chapters 1 
     through 24, unless the nonoriginating material is provided 
     for in a different subheading than the good for which origin 
     is being determined under this section.
       (I) A nonoriginating material that is a textile or apparel 
     good.
       (3) Textile or apparel goods.--
       (A) In general.--Except as provided in subparagraph (B), a 
     textile or apparel good that is not an originating good 
     because certain fibers or yarns used in the production of the 
     component of the good that determines the tariff 
     classification of the good do not undergo an applicable 
     change in tariff classification, set forth in Annex 3-A of 
     the Agreement, shall be considered to be an originating good 
     if--
       (i) the total weight of all such fibers or yarns in that 
     component is not more than 10 percent of the total weight of 
     that component; or
       (ii) the yarns are those described in section 
     204(b)(3)(B)(vi)(IV) of the Andean Trade Preference Act (19 
     U.S.C. 3203(b)(3)(B)(vi)(IV)) (as in effect on the date of 
     the enactment of this Act).

[[Page 5349]]

       (B) Certain textile or apparel goods.--A textile or apparel 
     good containing elastomeric yarns in the component of the 
     good that determines the tariff classification of the good 
     shall be considered to be an originating good only if such 
     yarns are wholly formed in the territory of Colombia, the 
     United States, or both.
       (C) Yarn, fabric, or fiber.--For purposes of this 
     paragraph, in the case of a good that is a yarn, fabric, or 
     fiber, the term ``component of the good that determines the 
     tariff classification of the good'' means all of the fibers 
     in the good.
       (g) Fungible Goods and Materials.--
       (1) In general.--
       (A) Claim for preferential tariff treatment.--A person 
     claiming that a fungible good or fungible material is an 
     originating good may base the claim either on the physical 
     segregation of the fungible good or fungible material or by 
     using an inventory management method with respect to the 
     fungible good or fungible material.
       (B) Inventory management method.--In this subsection, the 
     term ``inventory management method'' means--
       (i) averaging;
       (ii) ``last-in, first-out'';
       (iii) ``first-in, first-out''; or
       (iv) any other method--

       (I) recognized in the generally accepted accounting 
     principles of the country in which the production is 
     performed (whether Colombia or the United States); or
       (II) otherwise accepted by that country.

       (2) Election of inventory method.--A person selecting an 
     inventory management method under paragraph (1) for a 
     particular fungible good or fungible material shall continue 
     to use that method for that fungible good or fungible 
     material throughout the fiscal year of such person.
       (h) Accessories, Spare Parts, or Tools.--
       (1) In general.--Subject to paragraphs (2) and (3), 
     accessories, spare parts, or tools delivered with a good that 
     form part of the good's standard accessories, spare parts, or 
     tools shall--
       (A) be treated as originating goods if the good is an 
     originating good; and
       (B) be disregarded in determining whether all the 
     nonoriginating materials used in the production of the good 
     undergo the applicable change in tariff classification set 
     forth in Annex 4.1 of the Agreement.
       (2) Conditions.--Paragraph (1) shall apply only if--
       (A) the accessories, spare parts, or tools are classified 
     with and not invoiced separately from the good, regardless of 
     whether such accessories, spare parts, or tools are specified 
     or are separately identified in the invoice for the good; and
       (B) the quantities and value of the accessories, spare 
     parts, or tools are customary for the good.
       (3) Regional value-content.--If the good is subject to a 
     regional value-content requirement, the value of the 
     accessories, spare parts, or tools shall be taken into 
     account as originating or nonoriginating materials, as the 
     case may be, in calculating the regional value-content of the 
     good.
       (i) Packaging Materials and Containers for Retail Sale.--
     Packaging materials and containers in which a good is 
     packaged for retail sale, if classified with the good, shall 
     be disregarded in determining whether all the nonoriginating 
     materials used in the production of the good undergo the 
     applicable change in tariff classification set forth in Annex 
     3-A or Annex 4.1 of the Agreement, and, if the good is 
     subject to a regional value-content requirement, the value of 
     such packaging materials and containers shall be taken into 
     account as originating or nonoriginating materials, as the 
     case may be, in calculating the regional value-content of the 
     good.
       (j) Packing Materials and Containers for Shipment.--Packing 
     materials and containers for shipment shall be disregarded in 
     determining whether a good is an originating good.
       (k) Indirect Materials.--An indirect material shall be 
     treated as an originating material without regard to where it 
     is produced.
       (l) Transit and Transhipment.--A good that has undergone 
     production necessary to qualify as an originating good under 
     subsection (b) shall not be considered to be an originating 
     good if, subsequent to that production, the good--
       (1) undergoes further production or any other operation 
     outside the territory of Colombia or the United States, other 
     than unloading, reloading, or any other operation necessary 
     to preserve the good in good condition or to transport the 
     good to the territory of Colombia or the United States; or
       (2) does not remain under the control of customs 
     authorities in the territory of a country other than Colombia 
     or the United States.
       (m) Goods Classifiable as Goods Put Up in Sets.--
     Notwithstanding the rules set forth in Annex 3-A and Annex 
     4.1 of the Agreement, goods classifiable as goods put up in 
     sets for retail sale as provided for in General Rule of 
     Interpretation 3 of the HTS shall not be considered to be 
     originating goods unless--
       (1) each of the goods in the set is an originating good; or
       (2) the total value of the nonoriginating goods in the set 
     does not exceed--
       (A) in the case of textile or apparel goods, 10 percent of 
     the adjusted value of the set; or
       (B) in the case of a good, other than a textile or apparel 
     good, 15 percent of the adjusted value of the set.
       (n) Definitions.--In this section:
       (1) Adjusted value.--The term ``adjusted value'' means the 
     value determined in accordance with Articles 1 through 8, 
     Article 15, and the corresponding interpretive notes, of the 
     Agreement on Implementation of Article VII of the General 
     Agreement on Tariffs and Trade 1994 referred to in section 
     101(d)(8) of the Uruguay Round Agreements Act (19 U.S.C. 
     3511(d)(8)), adjusted, if necessary, to exclude any costs, 
     charges, or expenses incurred for transportation, insurance, 
     and related services incident to the international shipment 
     of the merchandise from the country of exportation to the 
     place of importation.
       (2) Class of motor vehicles.--The term ``class of motor 
     vehicles'' means any one of the following categories of motor 
     vehicles:
       (A) Motor vehicles provided for in subheading 8701.20, 
     8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 
     8705 or 8706, or motor vehicles for the transport of 16 or 
     more persons provided for in subheading 8702.10 or 8702.90.
       (B) Motor vehicles provided for in subheading 8701.10 or 
     any of subheadings 8701.30 through 8701.90.
       (C) Motor vehicles for the transport of 15 or fewer persons 
     provided for in subheading 8702.10 or 8702.90, or motor 
     vehicles provided for in subheading 8704.21 or 8704.31.
       (D) Motor vehicles provided for in any of subheadings 
     8703.21 through 8703.90.
       (3) Fungible good or fungible material.--The term 
     ``fungible good'' or ``fungible material'' means a good or 
     material, as the case may be, that is interchangeable with 
     another good or material for commercial purposes and the 
     properties of which are essentially identical to such other 
     good or material.
       (4) Generally accepted accounting principles.--The term 
     ``generally accepted accounting principles'' means the 
     recognized consensus or substantial authoritative support in 
     the territory of Colombia or the United States, as the case 
     may be, with respect to the recording of revenues, expenses, 
     costs, assets, and liabilities, the disclosure of 
     information, and the preparation of financial statements. The 
     principles may encompass broad guidelines of general 
     application as well as detailed standards, practices, and 
     procedures.
       (5) Good wholly obtained or produced entirely in the 
     territory of colombia, the united states, or both.--The term 
     ``good wholly obtained or produced entirely in the territory 
     of Colombia, the United States, or both'' means any of the 
     following:
       (A) Plants and plant products harvested or gathered in the 
     territory of Colombia, the United States, or both.
       (B) Live animals born and raised in the territory of 
     Colombia, the United States, or both.
       (C) Goods obtained in the territory of Colombia, the United 
     States, or both from live animals.
       (D) Goods obtained from hunting, trapping, fishing, or 
     aquaculture conducted in the territory of Colombia, the 
     United States, or both.
       (E) Minerals and other natural resources not included in 
     subparagraphs (A) through (D) that are extracted or taken 
     from the territory of Colombia, the United States, or both.
       (F) Fish, shellfish, and other marine life taken from the 
     sea, seabed, or subsoil outside the territory of Colombia or 
     the United States by--
       (i) a vessel that is registered or recorded with Colombia 
     and flying the flag of Colombia; or
       (ii) a vessel that is documented under the laws of the 
     United States.
       (G) Goods produced on board a factory ship from goods 
     referred to in subparagraph (F), if such factory ship--
       (i) is registered or recorded with Colombia and flies the 
     flag of Colombia; or
       (ii) is a vessel that is documented under the laws of the 
     United States.
       (H)(i) Goods taken by Colombia or a person of Colombia from 
     the seabed or subsoil outside the territorial waters of 
     Colombia, if Colombia has rights to exploit such seabed or 
     subsoil.
       (ii) Goods taken by the United States or a person of the 
     United States from the seabed or subsoil outside the 
     territorial waters of the United States, if the United States 
     has rights to exploit such seabed or subsoil.
       (I) Goods taken from outer space, if the goods are obtained 
     by Colombia or the United States or a person of Colombia or 
     the United States and not processed in the territory of a 
     country other than Colombia or the United States.
       (J) Waste and scrap derived from--
       (i) manufacturing or processing operations in the territory 
     of Colombia, the United States, or both; or
       (ii) used goods collected in the territory of Colombia, the 
     United States, or both, if such goods are fit only for the 
     recovery of raw materials.
       (K) Recovered goods derived in the territory of Colombia, 
     the United States, or both,

[[Page 5350]]

     from used goods, and used in the territory of Colombia, the 
     United States, or both, in the production of remanufactured 
     goods.
       (L) Goods, at any stage of production, produced in the 
     territory of Colombia, the United States, or both, 
     exclusively from--
       (i) goods referred to in any of subparagraphs (A) through 
     (J); or
       (ii) the derivatives of goods referred to in clause (i).
       (6) Identical goods.--The term ``identical goods'' means 
     goods that are the same in all respects relevant to the rule 
     of origin that qualifies the goods as originating goods.
       (7) Indirect material.--The term ``indirect material'' 
     means a good used in the production, testing, or inspection 
     of another good but not physically incorporated into that 
     other good, or a good used in the maintenance of buildings or 
     the operation of equipment associated with the production of 
     another good, including--
       (A) fuel and energy;
       (B) tools, dies, and molds;
       (C) spare parts and materials used in the maintenance of 
     equipment or buildings;
       (D) lubricants, greases, compounding materials, and other 
     materials used in production or used to operate equipment or 
     buildings;
       (E) gloves, glasses, footwear, clothing, safety equipment, 
     and supplies;
       (F) equipment, devices, and supplies used for testing or 
     inspecting the good;
       (G) catalysts and solvents; and
       (H) any other goods that are not incorporated into the 
     other good but the use of which in the production of the 
     other good can reasonably be demonstrated to be a part of 
     that production.
       (8) Material.--The term ``material'' means a good that is 
     used in the production of another good, including a part or 
     an ingredient.
       (9) Material that is self-produced.--The term ``material 
     that is self-produced'' means an originating material that is 
     produced by a producer of a good and used in the production 
     of that good.
       (10) Model line of motor vehicles.--The term ``model line 
     of motor vehicles'' means a group of motor vehicles having 
     the same platform or model name.
       (11) Net cost.--The term ``net cost'' means total cost 
     minus sales promotion, marketing, and after-sales service 
     costs, royalties, shipping and packing costs, and 
     nonallowable interest costs that are included in the total 
     cost.
       (12) Nonallowable interest costs.--The term ``nonallowable 
     interest costs'' means interest costs incurred by a producer 
     that exceed 700 basis points above the applicable official 
     interest rate for comparable maturities of the country in 
     which the producer is located.
       (13) Nonoriginating good or nonoriginating material.--The 
     terms ``nonoriginating good'' and ``nonoriginating material'' 
     mean a good or material, as the case may be, that does not 
     qualify as originating under this section.
       (14) Packing materials and containers for shipment.--The 
     term ``packing materials and containers for shipment'' means 
     goods used to protect another good during its transportation 
     and does not include the packaging materials and containers 
     in which the other good is packaged for retail sale.
       (15) Preferential tariff treatment.--The term 
     ``preferential tariff treatment'' means the customs duty 
     rate, and the treatment under article 2.10.4 of the 
     Agreement, that is applicable to an originating good pursuant 
     to the Agreement.
       (16) Producer.--The term ``producer'' means a person who 
     engages in the production of a good in the territory of 
     Colombia or the United States.
       (17) Production.--The term ``production'' means growing, 
     mining, harvesting, fishing, raising, trapping, hunting, 
     manufacturing, processing, assembling, or disassembling a 
     good.
       (18) Reasonably allocate.--The term ``reasonably allocate'' 
     means to apportion in a manner that would be appropriate 
     under generally accepted accounting principles.
       (19) Recovered goods.--The term ``recovered goods'' means 
     materials in the form of individual parts that are the result 
     of--
       (A) the disassembly of used goods into individual parts; 
     and
       (B) the cleaning, inspecting, testing, or other processing 
     that is necessary for improvement to sound working condition 
     of such individual parts.
       (20) Remanufactured good.--The term ``remanufactured good'' 
     means an industrial good assembled in the territory of 
     Colombia or the United States, or both, that is classified 
     under chapter 84, 85, 87, or 90 or heading 9402, other than a 
     good classified under heading 8418 or 8516, and that--
       (A) is entirely or partially comprised of recovered goods; 
     and
       (B) has a similar life expectancy and enjoys a factory 
     warranty similar to such a good that is new.
       (21) Total cost.--
       (A) In general.--The term ``total cost''--
       (i) means all product costs, period costs, and other costs 
     for a good incurred in the territory of Colombia, the United 
     States, or both; and
       (ii) does not include profits that are earned by the 
     producer, regardless of whether they are retained by the 
     producer or paid out to other persons as dividends, or taxes 
     paid on those profits, including capital gains taxes.
       (B) Other definitions.--In this paragraph:
       (i) Product costs.--The term ``product costs'' means costs 
     that are associated with the production of a good and include 
     the value of materials, direct labor costs, and direct 
     overhead.
       (ii) Period costs.--The term ``period costs'' means costs, 
     other than product costs, that are expensed in the period in 
     which they are incurred, such as selling expenses and general 
     and administrative expenses.
       (iii) Other costs.--The term ``other costs'' means all 
     costs recorded on the books of the producer that are not 
     product costs or period costs, such as interest.
       (22) Used.--The term ``used'' means utilized or consumed in 
     the production of goods.
       (o) Presidential Proclamation Authority.--
       (1) In general.--The President is authorized to proclaim, 
     as part of the HTS--
       (A) the provisions set forth in Annex 3-A and Annex 4.1 of 
     the Agreement; and
       (B) any additional subordinate category that is necessary 
     to carry out this title consistent with the Agreement.
       (2) Fabrics and yarns not available in commercial 
     quantities in the united states.--The President is authorized 
     to proclaim that a fabric or yarn is added to the list in 
     Annex 3-B of the Agreement in an unrestricted quantity, as 
     provided in article 3.3.5(e) of the Agreement.
       (3) Modifications.--
       (A) In general.--Subject to the consultation and layover 
     provisions of section 104, the President may proclaim 
     modifications to the provisions proclaimed under the 
     authority of paragraph (1)(A), other than provisions of 
     chapters 50 through 63 (as included in Annex 3-A of the 
     Agreement).
       (B) Additional proclamations.--Notwithstanding subparagraph 
     (A), and subject to the consultation and layover provisions 
     of section 104, the President may proclaim before the end of 
     the 1-year period beginning on the date of the enactment of 
     this Act, modifications to correct any typographical, 
     clerical, or other nonsubstantive technical error regarding 
     the provisions of chapters 50 through 63 (as included in 
     Annex 3-A of the Agreement).
       (4) Fabrics, yarns, or fibers not available in commercial 
     quantities in colombia and the united states.--
       (A) In general.--Notwithstanding paragraph (3)(A), the list 
     of fabrics, yarns, and fibers set forth in Annex 3-B of the 
     Agreement may be modified as provided for in this paragraph.
       (B) Definitions.--In this paragraph:
       (i) The term ``interested entity'' means the Government of 
     Colombia, a potential or actual purchaser of a textile or 
     apparel good, or a potential or actual supplier of a textile 
     or apparel good.
       (ii) All references to ``day'' and ``days'' exclude 
     Saturdays, Sundays, and legal holidays observed by the 
     Government of the United States.
       (C) Requests to add fabrics, yarns, or fibers.--(i) An 
     interested entity may request the President to determine that 
     a fabric, yarn, or fiber is not available in commercial 
     quantities in a timely manner in Colombia and the United 
     States and to add that fabric, yarn, or fiber to the list in 
     Annex 3-B of the Agreement in a restricted or unrestricted 
     quantity.
       (ii) After receiving a request under clause (i), the 
     President may determine whether--
       (I) the fabric, yarn, or fiber is available in commercial 
     quantities in a timely manner in Colombia or the United 
     States; or
       (II) any interested entity objects to the request.
       (iii) The President may, within the time periods specified 
     in clause (iv), proclaim that the fabric, yarn, or fiber that 
     is the subject of the request is added to the list in Annex 
     3-B of the Agreement in an unrestricted quantity, or in any 
     restricted quantity that the President may establish, if the 
     President has determined under clause (ii) that--
       (I) the fabric, yarn, or fiber is not available in 
     commercial quantities in a timely manner in Colombia and the 
     United States; or
       (II) no interested entity has objected to the request.
       (iv) The time periods within which the President may issue 
     a proclamation under clause (iii) are--
       (I) not later than 30 days after the date on which a 
     request is submitted under clause (i); or
       (II) not later than 44 days after the request is submitted, 
     if the President determines, within 30 days after the date on 
     which the request is submitted, that the President does not 
     have sufficient information to make a determination under 
     clause (ii).
       (v) Notwithstanding section 103(a)(2), a proclamation made 
     under clause (iii) shall take effect on the date on which the 
     text of the proclamation is published in the Federal 
     Register.
       (vi) Not later than 6 months after proclaiming under clause 
     (iii) that a fabric, yarn, or fiber is added to the list in 
     Annex 3-B of the Agreement in a restricted quantity, the 
     President may eliminate the restriction if the President 
     determines that the fabric,

[[Page 5351]]

     yarn, or fiber is not available in commercial quantities in a 
     timely manner in Colombia and the United States.
       (D) Deemed approval of request.--If, after an interested 
     entity submits a request under subparagraph (C)(i), the 
     President does not, within the applicable time period 
     specified in subparagraph (C)(iv), make a determination under 
     subparagraph (C)(ii) regarding the request, the fabric, yarn, 
     or fiber that is the subject of the request shall be 
     considered to be added, in an unrestricted quantity, to the 
     list in Annex 3-B of the Agreement beginning--
       (i) 45 days after the date on which the request was 
     submitted; or
       (ii) 60 days after the date on which the request was 
     submitted, if the President made a determination under 
     subparagraph (C)(iv)(II).
       (E) Requests to restrict or remove fabrics, yarns, or 
     fibers.--(i) Subject to clause (ii), an interested entity may 
     request the President to restrict the quantity of, or remove 
     from the list in Annex 3-B of the Agreement, any fabric, 
     yarn, or fiber--
       (I) that has been added to that list in an unrestricted 
     quantity pursuant to paragraph (2) or subparagraph (C)(iii) 
     or (D) of this paragraph; or
       (II) with respect to which the President has eliminated a 
     restriction under subparagraph (C)(vi).
       (ii) An interested entity may submit a request under clause 
     (i) at any time beginning 6 months after the date of the 
     action described in subclause (I) or (II) of that clause.
       (iii) Not later than 30 days after the date on which a 
     request under clause (i) is submitted, the President may 
     proclaim an action provided for under clause (i) if the 
     President determines that the fabric, yarn, or fiber that is 
     the subject of the request is available in commercial 
     quantities in a timely manner in Colombia or the United 
     States.
       (iv) A proclamation under clause (iii) shall take effect no 
     earlier than the date that is 6 months after the date on 
     which the text of the proclamation is published in the 
     Federal Register.
       (F) Procedures.--The President shall establish procedures--
       (i) governing the submission of a request under 
     subparagraphs (C) and (E); and
       (ii) providing an opportunity for interested entities to 
     submit comments and supporting evidence before the President 
     makes a determination under subparagraph (C) (ii) or (vi) or 
     (E)(iii).

     SEC. 204. CUSTOMS USER FEES.

       (a) In General.--Section 13031(b) of the Consolidated 
     Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)) 
     is amended by adding after paragraph (18), the following:
       ``(19) No fee may be charged under subsection (a)(9) or 
     (10) with respect to goods that qualify as originating goods 
     under section 203 of the United States-Colombia Trade 
     Promotion Agreement Implementation Act. Any service for which 
     an exemption from such fee is provided by reason of this 
     paragraph may not be funded with money contained in the 
     Customs User Fee Account.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2013.
       (c) Refund.--Any fee described in paragraph (19) of section 
     13031(b) of the Consolidated Omnibus Budget Reconciliation 
     Act of 1985 (19 U.S.C. 58c(b)) (as added by subsection (a)) 
     that is paid on or after the date that the United States-
     Colombia Trade Promotion Agreement enters into force and 
     before October 1, 2013, shall be refunded with interest if 
     application for such refund is made on or after October 1, 
     2013, and before July 1, 2014.

     SEC. 205. DISCLOSURE OF INCORRECT INFORMATION; FALSE 
                   CERTIFICATIONS OF ORIGIN; DENIAL OF 
                   PREFERENTIAL TARIFF TREATMENT.

       (a) Disclosure of Incorrect Information.--Section 592 of 
     the Tariff Act of 1930 (19 U.S.C. 1592) is amended--
       (1) in subsection (c)--
       (A) by redesignating paragraph (11) as paragraph (12); and
       (B) by inserting after paragraph (10) the following new 
     paragraph:
       ``(11) Prior disclosure regarding claims under the united 
     states-colombia trade promotion agreement.--An importer shall 
     not be subject to penalties under subsection (a) for making 
     an incorrect claim that a good qualifies as an originating 
     good under section 203 of the United States- Colombia Trade 
     Promotion Agreement Implementation Act if the importer, in 
     accordance with regulations issued by the Secretary of the 
     Treasury, promptly and voluntarily makes a corrected 
     declaration and pays any duties owing with respect to that 
     good.''; and
       (2) by adding at the end the following new subsection:
       ``(j) False Certifications of Origin Under the United 
     States-Colombia Trade Promotion Agreement.--
       ``(1) In general.--Subject to paragraph (2), it is unlawful 
     for any person to certify falsely, by fraud, gross 
     negligence, or negligence, in a CTPA certification of origin 
     (as defined in section 508(i)(1)(B) of this Act) that a good 
     exported from the United States qualifies as an originating 
     good under the rules of origin provided for in section 203 of 
     the United States-Colombia Trade Promotion Agreement 
     Implementation Act. The procedures and penalties of this 
     section that apply to a violation of subsection (a) also 
     apply to a violation of this subsection.
       ``(2) Prompt and voluntary disclosure of incorrect 
     information.--No penalty shall be imposed under this 
     subsection if, promptly after an exporter or producer that 
     issued a CTPA certification of origin has reason to believe 
     that such certification contains or is based on incorrect 
     information, the exporter or producer voluntarily provides 
     written notice of such incorrect information to every person 
     to whom the certification was issued.
       ``(3) Exception.--A person shall not be considered to have 
     violated paragraph (1) if--
       ``(A) the information was correct at the time it was 
     provided in a CTPA certification of origin but was later 
     rendered incorrect due to a change in circumstances; and
       ``(B) the person promptly and voluntarily provides written 
     notice of the change in circumstances to all persons to whom 
     the person provided the certification.''.
       (b) Denial of Preferential Tariff Treatment.--Section 514 
     of the Tariff Act of 1930 (19 U.S.C. 1514) is amended by 
     adding at the end the following new subsection:
       ``(j) Denial of Preferential Tariff Treatment Under the 
     United States-Colombia Trade Promotion Agreement.--If U.S. 
     Customs and Border Protection or U.S. Immigration and Customs 
     Enforcement of the Department of Homeland Security finds 
     indications of a pattern of conduct by an importer, exporter, 
     or producer of false or unsupported representations that 
     goods qualify under the rules of origin provided for in 
     section 203 of the United States-Colombia Trade Promotion 
     Agreement Implementation Act, U.S. Customs and Border 
     Protection, in accordance with regulations issued by the 
     Secretary of the Treasury, may suspend preferential tariff 
     treatment under the United States-Colombia Trade Promotion 
     Agreement to entries of identical goods covered by subsequent 
     representations by that importer, exporter, or producer until 
     U.S. Customs and Border Protection determines that 
     representations of that person are in conformity with such 
     section 203.''.

     SEC. 206. RELIQUIDATION OF ENTRIES.

       Subsection (d) of section 520 of the Tariff Act of 1930 (19 
     U.S.C. 1520(d)) is amended in the matter preceding paragraph 
     (1)--
       (1) by striking ``or''; and
       (2) by striking ``for which'' and inserting ``, or section 
     203 of the United States-Colombia Trade Promotion Agreement 
     Implementation Act for which''.

     SEC. 207. RECORDKEEPING REQUIREMENTS.

       Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is 
     amended--
       (1) by redesignating subsection (i) as subsection (j);
       (2) by inserting after subsection (h) the following new 
     subsection:
       ``(i) Certifications of Origin for Goods Exported Under the 
     United States-Colombia Trade Promotion Agreement.--
       ``(1) Definitions.--In this subsection:
       ``(A) Records and supporting documents.--The term `records 
     and supporting documents' means, with respect to an exported 
     good under paragraph (2), records and documents related to 
     the origin of the good, including--
       ``(i) the purchase, cost, and value of, and payment for, 
     the good;
       ``(ii) the purchase, cost, and value of, and payment for, 
     all materials, including indirect materials, used in the 
     production of the good; and
       ``(iii) the production of the good in the form in which it 
     was exported.
       ``(B) CTPA certification of origin.--The term `CTPA 
     certification of origin' means the certification established 
     under article 4.15 of the United States-Colombia Trade 
     Promotion Agreement that a good qualifies as an originating 
     good under such Agreement.
       ``(2) Exports to colombia.--Any person who completes and 
     issues a CTPA certification of origin for a good exported 
     from the United States shall make, keep, and, pursuant to 
     rules and regulations promulgated by the Secretary of the 
     Treasury, render for examination and inspection all records 
     and supporting documents related to the origin of the good 
     (including the certification or copies thereof).
       ``(3) Retention period.--The person who issues a CTPA 
     certification of origin shall keep the records and supporting 
     documents relating to that certification of origin for a 
     period of at least 5 years after the date on which the 
     certification is issued.''; and
       (3) in subsection (j), as so redesignated by striking 
     ``(f), (g), or (h)'' and inserting ``(f), (g), (h), or (i)''.

     SEC. 208. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL 
                   GOODS.

       (a) Action During Verification.--
       (1) In general.--If the Secretary of the Treasury requests 
     the Government of Colombia to conduct a verification pursuant 
     to article 3.2 of the Agreement for purposes of making a 
     determination under paragraph (2), the President may direct 
     the Secretary to take appropriate action described in 
     subsection (b) while the verification is being conducted.
       (2) Determination.--A determination under this paragraph is 
     a determination of the Secretary that--
       (A) an exporter or producer in Colombia is complying with 
     applicable customs laws,

[[Page 5352]]

     regulations, and procedures regarding trade in textile or 
     apparel goods, or
       (B) a claim that a textile or apparel good exported or 
     produced by such exporter or producer--
       (i) qualifies as an originating good under section 203, or
       (ii) is a good of Colombia,
     is accurate.
       (b) Appropriate Action Described.--Appropriate action under 
     subsection (a)(1) includes--
       (1) suspension of preferential tariff treatment under the 
     Agreement with respect to--
       (A) any textile or apparel good exported or produced by the 
     person that is the subject of a verification under subsection 
     (a)(1) regarding compliance described in subsection 
     (a)(2)(A), if the Secretary determines that there is 
     insufficient information to support any claim for 
     preferential tariff treatment that has been made with respect 
     to any such good; or
       (B) the textile or apparel good for which a claim of 
     preferential tariff treatment has been made that is the 
     subject of a verification under subsection (a)(1) regarding a 
     claim described in subsection (a)(2)(B), if the Secretary 
     determines that there is insufficient information to support 
     that claim;
       (2) denial of preferential tariff treatment under the 
     Agreement with respect to--
       (A) any textile or apparel good exported or produced by the 
     person that is the subject of a verification under subsection 
     (a)(1) regarding compliance described in subsection 
     (a)(2)(A), if the Secretary determines that the person has 
     provided incorrect information to support any claim for 
     preferential tariff treatment that has been made with respect 
     to any such good; or
       (B) the textile or apparel good for which a claim of 
     preferential tariff treatment has been made that is the 
     subject of a verification under subsection (a)(1) regarding a 
     claim described in subsection (a)(2)(B), if the Secretary 
     determines that a person has provided incorrect information 
     to support that claim;
       (3) detention of any textile or apparel good exported or 
     produced by the person that is the subject of a verification 
     under subsection (a)(1) regarding compliance described in 
     subsection (a)(2)(A) or a claim described in subsection 
     (a)(2)(B), if the Secretary determines that there is 
     insufficient information to determine the country of origin 
     of any such good; and
       (4) denial of entry into the United States of any textile 
     or apparel good exported or produced by the person that is 
     the subject of a verification under subsection (a)(1) 
     regarding compliance described in subsection (a)(2)(A) or a 
     claim described in subsection (a)(2)(B), if the Secretary 
     determines that the person has provided incorrect information 
     as to the country of origin of any such good.
       (c) Action on Completion of a Verification.--On completion 
     of a verification under subsection (a), the President may 
     direct the Secretary to take appropriate action described in 
     subsection (d) until such time as the Secretary receives 
     information sufficient to make the determination under 
     subsection (a)(2) or until such earlier date as the President 
     may direct.
       (d) Appropriate Action Described.--Appropriate action under 
     subsection (c) includes--
       (1) denial of preferential tariff treatment under the 
     Agreement with respect to--
       (A) any textile or apparel good exported or produced by the 
     person that is the subject of a verification under subsection 
     (a)(1) regarding compliance described in subsection 
     (a)(2)(A), if the Secretary determines that there is 
     insufficient information to support, or that the person has 
     provided incorrect information to support, any claim for 
     preferential tariff treatment that has been made with respect 
     to any such good; or
       (B) the textile or apparel good for which a claim of 
     preferential tariff treatment has been made that is the 
     subject of a verification under subsection (a)(1) regarding a 
     claim described in subsection (a)(2)(B), if the Secretary 
     determines that there is insufficient information to support, 
     or that a person has provided incorrect information to 
     support, that claim; and
       (2) denial of entry into the United States of any textile 
     or apparel good exported or produced by the person that is 
     the subject of a verification under subsection (a)(1) 
     regarding compliance described in subsection (a)(2)(A) or a 
     claim described in subsection (a)(2)(B), if the Secretary 
     determines that there is insufficient information to 
     determine, or that the person has provided incorrect 
     information as to, the country of origin of any such good.
       (e) Publication of Name of Person.--In accordance with 
     article 3.2.6 of the Agreement, the Secretary may publish the 
     name of any person that the Secretary has determined--
       (1) is engaged in circumvention of applicable laws, 
     regulations, or procedures affecting trade in textile or 
     apparel goods; or
       (2) has failed to demonstrate that it produces, or is 
     capable of producing, textile or apparel goods.
       (f) Verifications in the United States.--If the government 
     of a country that is a party to a free trade agreement with 
     the United States makes a request for a verification pursuant 
     to that agreement, the Secretary may request a verification 
     of the production of any textile or apparel good in order to 
     assist that government in determining--
       (1) whether a claim of origin under the agreement for a 
     textile or apparel good is accurate; or
       (2) whether an exporter, producer, or other enterprise 
     located in the United States involved in the movement of 
     textile or apparel goods from the United States to the 
     territory of the requesting government is complying with 
     applicable customs laws, regulations, and procedures 
     regarding trade in textile or apparel goods.

     SEC. 209. REGULATIONS.

       The Secretary of the Treasury shall prescribe such 
     regulations as may be necessary to carry out--
       (1) subsections (a) through (n) of section 203;
       (2) the amendment made by section 204; and
       (3) any proclamation issued under section 203(o).

                     TITLE III--RELIEF FROM IMPORTS

     SEC. 301. DEFINITIONS.

       In this title:
       (1) Colombian article.--The term ``Colombian article'' 
     means an article that qualifies as an originating good under 
     section 203(b).
       (2) Colombian textile or apparel article.--The term 
     ``Colombian textile or apparel article'' means a textile or 
     apparel good (as defined in section 3(4)) that is a Colombian 
     article.

     Subtitle A--Relief From Imports Benefiting From the Agreement

     SEC. 311. COMMENCING OF ACTION FOR RELIEF.

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

     SEC. 312. COMMISSION ACTION ON PETITION.

       (a) Determination.--Not later than 120 days after the date 
     on which an investigation is initiated under section 311(b) 
     with respect to a petition, the Commission shall make the 
     determination required under that section.
       (b) Applicable Provisions.--For purposes of this subtitle, 
     the provisions of paragraphs (1), (2), and (3) of section 
     330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), 
     and (3)) shall be applied with respect to determinations and 
     findings made under this section as if such determinations 
     and findings were made under section 202 of the Trade Act of 
     1974 (19 U.S.C. 2252).
       (c) Additional Finding and Recommendation if Determination 
     Affirmative.--
       (1) In general.--If the determination made by the 
     Commission under subsection (a) with respect to imports of an 
     article is affirmative, or if the President may consider a 
     determination of the Commission to be an affirmative 
     determination as provided for under paragraph (1) of section 
     330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)), the 
     Commission shall find, and recommend to the President in the 
     report required under subsection (d), the amount of import 
     relief that is necessary to remedy or prevent the injury 
     found by the Commission in the determination and to 
     facilitate the efforts of the domestic industry to make a 
     positive adjustment to import competition.
       (2) Limitation on relief.--The import relief recommended by 
     the Commission under this subsection shall be limited to the 
     relief described in section 313(c).
       (3) Voting; separate views.--Only those members of the 
     Commission who voted in the affirmative under subsection (a) 
     are eligible to vote on the proposed action to remedy or 
     prevent the injury found by the Commission. Members of the 
     Commission who

[[Page 5353]]

     did not vote in the affirmative may submit, in the report 
     required under subsection (d), separate views regarding what 
     action, if any, should be taken to remedy or prevent the 
     injury.
       (d) Report to President.--Not later than the date that is 
     30 days after the date on which a determination is made under 
     subsection (a) with respect to an investigation, the 
     Commission shall submit to the President a report that 
     includes--
       (1) the determination made under subsection (a) and an 
     explanation of the basis for the determination;
       (2) if the determination under subsection (a) is 
     affirmative, any findings and recommendations for import 
     relief made under subsection (c) and an explanation of the 
     basis for each recommendation; and
       (3) any dissenting or separate views by members of the 
     Commission regarding the determination referred to in 
     paragraph (1) and any finding or recommendation referred to 
     in paragraph (2).
       (e) Public Notice.--Upon submitting a report to the 
     President under subsection (d), the Commission shall promptly 
     make public the report (with the exception of information 
     which the Commission determines to be confidential) and shall 
     publish a summary of the report in the Federal Register.

     SEC. 313. PROVISION OF RELIEF.

       (a) In General.--Not later than the date that is 30 days 
     after the date on which the President receives the report of 
     the Commission in which the Commission's determination under 
     section 312(a) is affirmative, or which contains a 
     determination under section 312(a) that the President 
     considers to be affirmative under paragraph (1) of section 
     330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 
     President, subject to subsection (b), shall provide relief 
     from imports of the article that is the subject of such 
     determination to the extent that the President determines 
     necessary to remedy or prevent the injury found by the 
     Commission and to facilitate the efforts of the domestic 
     industry to make a positive adjustment to import competition.
       (b) Exception.--The President is not required to provide 
     import relief under this section if the President determines 
     that the provision of the import relief will not provide 
     greater economic and social benefits than costs.
       (c) Nature of Relief.--
       (1) In general.--The import relief that the President is 
     authorized to provide under this section with respect to 
     imports of an article is as follows:
       (A) The suspension of any further reduction provided for 
     under Annex 2.3 of the Agreement in the duty imposed on the 
     article.
       (B) An increase in the rate of duty imposed on the article 
     to a level that does not exceed the lesser of--
       (i) the column 1 general rate of duty imposed under the HTS 
     on like articles 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.
       (2) Progressive liberalization.--If the period for which 
     import relief is provided under this section is greater than 
     1 year, the President shall provide for the progressive 
     liberalization (described in article 8.2.2 of the Agreement) 
     of such relief at regular intervals during the period of its 
     application.
       (d) Period of Relief.--
       (1) In general.--Subject to paragraph (2), any import 
     relief that the President provides under this section may not 
     be in effect for more than 2 years.
       (2) Extension.--
       (A) In general.--Subject to subparagraph (C), the 
     President, after receiving a determination from the 
     Commission under subparagraph (B) that is affirmative, or 
     which the President considers to be affirmative under 
     paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 
     U.S.C. 1330(d)(1)), may extend the effective period of any 
     import relief provided under this section by up to 2 years, 
     if the President determines that--
       (i) the import relief continues to be necessary to remedy 
     or prevent serious injury and to facilitate adjustment by the 
     domestic industry to import competition; and
       (ii) there is evidence that the industry is making a 
     positive adjustment to import competition.
       (B) Action by commission.--
       (i) Investigation.--Upon a petition on behalf of the 
     industry concerned that is filed with the Commission not 
     earlier than the date that is 9 months, and not later than 
     the date that is 6 months, before the date on which any 
     action taken under subsection (a) is to terminate, the 
     Commission shall conduct an investigation to determine 
     whether action under this section continues to be necessary 
     to remedy or prevent serious injury and whether there is 
     evidence that the industry is making a positive adjustment to 
     import competition.
       (ii) Notice and hearing.--The Commission shall publish 
     notice of the commencement of any proceeding under this 
     subparagraph in the Federal Register and shall, within a 
     reasonable time thereafter, hold a public hearing at which 
     the Commission shall afford interested parties and consumers 
     an opportunity to be present, to present evidence, and to 
     respond to the presentations of other parties and consumers, 
     and otherwise to be heard.
       (iii) Report.--The Commission shall submit to the President 
     a report on its investigation and determination under this 
     subparagraph not later than 60 days before the action under 
     subsection (a) is to terminate, unless the President 
     specifies a different date.
       (C) Period of import relief.--Any import relief provided 
     under this section, including any extensions thereof, may 
     not, in the aggregate, be in effect for more than 4 years.
       (e) Rate After Termination of Import Relief.--When import 
     relief under this section is terminated with respect to an 
     article--
       (1) the rate of duty on that article after such termination 
     and on or before December 31 of the year in which such 
     termination occurs shall be the rate that, according to the 
     Schedule of the United States to Annex 2.3 of the Agreement, 
     would have been in effect 1 year after the provision of 
     relief under subsection (a); and
       (2) the rate of duty for that article after December 31 of 
     the year in which such termination occurs shall be, at the 
     discretion of the President, either--
       (A) the applicable rate of duty for that article set forth 
     in the Schedule of the United States to Annex 2.3 of the 
     Agreement; or
       (B) the rate of duty resulting from the elimination of the 
     tariff in equal annual stages ending on the date set forth in 
     the Schedule of the United States to Annex 2.3 of the 
     Agreement for the elimination of the tariff.
       (f) Articles Exempt From Relief.--No import relief may be 
     provided under this section on--
       (1) any article that is subject to import relief under--
       (A) subtitle B; or
       (B) chapter 1 of title II of the Trade Act of 1974 (19 
     U.S.C. 2251 et seq.); or
       (2) any article on which an additional duty assessed under 
     section 202(b) is in effect.

     SEC. 314. TERMINATION OF RELIEF AUTHORITY.

       (a) General Rule.--Subject to subsection (b), no import 
     relief may be provided under this subtitle after the date 
     that is 10 years after the date on which the Agreement enters 
     into force.
       (b) Exception.--If an article for which relief is provided 
     under this subtitle is an article for which the period for 
     tariff elimination, set forth in the Schedule of the United 
     States to Annex 2.3 of the Agreement, is greater than 10 
     years, no relief under this subtitle may be provided for that 
     article after the date on which that period ends.

     SEC. 315. COMPENSATION AUTHORITY.

       For purposes of section 123 of the Trade Act of 1974 (19 
     U.S.C. 2133), any import relief provided by the President 
     under section 313 shall be treated as action taken under 
     chapter 1 of title II of such Act (19 U.S.C. 2251 et seq.).

     SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

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

           Subtitle B--Textile and Apparel Safeguard Measures

     SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

       (a) In General.--A request for action under this subtitle 
     for the purpose of adjusting to the obligations of the United 
     States under the Agreement may be filed with the President by 
     an interested party. Upon the filing of a request, the 
     President shall review the request to determine, from 
     information presented in the request, whether to commence 
     consideration of the request.
       (b) Publication of Request.--If the President determines 
     that the request under subsection (a) provides the 
     information necessary for the request to be considered, the 
     President shall publish in the Federal Register a notice of 
     commencement of consideration of the request, and notice 
     seeking public comments regarding the request. The notice 
     shall include a summary of the request and the dates by which 
     comments and rebuttals must be received.

     SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

       (a) Determination.--
       (1) In general.--If a positive determination is made under 
     section 321(b), the President shall determine whether, as a 
     result of the elimination of a duty under the Agreement, a 
     Colombian textile or apparel article is being imported into 
     the United States in such increased quantities, in absolute 
     terms or relative to the domestic market for that article, 
     and under such conditions as to cause serious damage, or 
     actual threat thereof, to a domestic industry producing an 
     article that is like, or directly competitive with, the 
     imported article.
       (2) Serious damage.--In making a determination under 
     paragraph (1), the President--
       (A) shall examine the effect of increased imports on the 
     domestic industry, as reflected in changes in such relevant 
     economic

[[Page 5354]]

     factors as output, productivity, utilization of capacity, 
     inventories, market share, exports, wages, employment, 
     domestic prices, profits and losses, and investment, no one 
     of which is necessarily decisive; and
       (B) shall not consider changes in consumer preference or 
     changes in technology in the United States as factors 
     supporting a determination of serious damage or actual threat 
     thereof.
       (b) Provision of Relief.--
       (1) In general.--If a determination under subsection (a) is 
     affirmative, the President may provide relief from imports of 
     the article that is the subject of such determination, as 
     provided in paragraph (2), to the extent that the President 
     determines necessary to remedy or prevent the serious damage 
     and to facilitate adjustment by the domestic industry.
       (2) Nature of relief.--The relief that the President is 
     authorized to provide under this subsection with respect to 
     imports of an article is an increase in the rate of duty 
     imposed on the article to a level that does not exceed the 
     lesser of--
       (A) the column 1 general rate of duty imposed under the HTS 
     on like articles at the time the import relief is provided; 
     or
       (B) the column 1 general rate of duty imposed under the HTS 
     on like articles on the day before the date on which the 
     Agreement enters into force.

     SEC. 323. PERIOD OF RELIEF.

       (a) In General.--Subject to subsection (b), the import 
     relief that the President provides under section 322(b) may 
     not be in effect for more than 2 years.
       (b) Extension.--
       (1) In general.--Subject to paragraph (2), the President 
     may extend the effective period of any import relief provided 
     under this subtitle for a period of not more than 1 year, if 
     the President determines that--
       (A) the import relief continues to be necessary to remedy 
     or prevent serious damage and to facilitate adjustment by the 
     domestic industry to import competition; and
       (B) there is evidence that the industry is making a 
     positive adjustment to import competition.
       (2) Limitation.--Any relief provided under this subtitle, 
     including any extensions thereof, may not, in the aggregate, 
     be in effect for more than 3 years.

     SEC. 324. ARTICLES EXEMPT FROM RELIEF.

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

     SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

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

     SEC. 326. TERMINATION OF RELIEF AUTHORITY.

       No import relief may be provided under this subtitle with 
     respect to any article after the date that is 5 years after 
     the date on which the Agreement enters into force.

     SEC. 327. COMPENSATION AUTHORITY.

       For purposes of section 123 of the Trade Act of 1974 (19 
     U.S.C. 2133), any import relief provided by the President 
     under this subtitle shall be treated as action taken under 
     chapter 1 of title II of such Act (19 U.S.C. 2251 et seq.).

     SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.

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

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

     SEC. 331. FINDINGS AND ACTION ON GOODS OF COLOMBIA.

       (a) Effect of Imports.--If, in any investigation initiated 
     under chapter 1 of title II of the Trade Act of 1974 (19 
     U.S.C. 2251 et seq.), the Commission makes an affirmative 
     determination (or a determination which the President may 
     treat as an affirmative determination under such chapter by 
     reason of section 330(d) of the Tariff Act of 1930), the 
     Commission shall also find (and report to the President at 
     the time such injury determination is submitted to the 
     President) whether imports of the article of Colombia that 
     qualify as originating goods under section 203(b) are a 
     substantial cause of serious injury or threat thereof.
       (b) Presidential Determination Regarding Imports of 
     Colombia.--In determining the nature and extent of action to 
     be taken under chapter 1 of title II of the Trade Act of 1974 
     (19 U.S.C. 2251 et seq.), the President may exclude from the 
     action goods of Colombia with respect to which the Commission 
     has made a negative finding under subsection (a).

                         TITLE IV--PROCUREMENT

     SEC. 401. ELIGIBLE PRODUCTS.

       Section 308(4)(A) of the Trade Agreements Act of 1979 (19 
     U.S.C. 2518(4)(A)) is amended--
       (1) by striking ``or'' at the end of clause (vi);
       (2) by striking the period at the end of clause (vii) and 
     inserting ``; or''; and
       (3) by adding at the end the following new clause:
       ``(viii) a party to the United States-Colombia Trade 
     Promotion Agreement, a product or service of that country or 
     instrumentality which is covered under that agreement for 
     procurement by the United States.''.

                            TITLE V--OFFSETS

     SEC. 501. CUSTOMS USER FEES.

       (a) In General.--Section 13031(j)(3)(A) of the Consolidated 
     Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
     58c(j)(3)(A)) shall be applied by extending by 155 days the 
     date in effect on the date of the enactment of this Act after 
     which fees may not be charged under paragraphs (9) and (10) 
     of subsection (a) of such section 13031.
       (b) Other Fees.--Section 13031(j)(3)(B)(i) of the 
     Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
     U.S.C. 58c(j)(3)(B)(i)) shall be applied by extending by 155 
     days the date in effect on the date of the enactment of this 
     Act after which fees may not be charged under paragraphs (1) 
     through (8) of subsection (a) of such section 13031.

     SEC. 502. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       (a) Corporate estimated tax due in 2012.--The percentage 
     under subparagraph (B) of section 401(1) of the Tax Increase 
     Prevention and Reconciliation Act of 2005 (Public Law 109-
     222; 26 U.S.C. 6655 note) in effect on the date of the 
     enactment of this Act is increased by 1 percentage point.
       (b) Corporate estimated tax due in 2013.--The percentage 
     under subparagraph (C) of section 401(1) of the Tax Increase 
     Prevention and Reconciliation Act of 2005 (Public Law 109-
     222; 26 U.S.C. 6655 note) in effect on the date of the 
     enactment of this Act is increased by 2 percentage points.
                                 ______
                                 
      By Mr. DORGAN (for himself and Mr. Inouye):
  S. 2831. A bill to reauthorize the Federal Trade Commission, and for 
other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Mr. DORGAN. Mr. President, today I am introducing the Federal Trade 
Commission Reauthorization Act of 2008. I am joined by Senator Inouye. 
We seek with this reauthorization to give the Federal Trade Commission, 
FTC, what it needs to protect consumers from unfair or deceptive 
practices and unfair methods of competition.
  The agency has a very important mission, but needs more resources and 
authority. The number of FTC employees has been greatly reduced from 
its pre-1980 high of 1,746, and the agency currently has approximately 
1,102 employees. We need to make sure that they have the manpower and 
the technology to protect consumers.
  I'd like to take a second to highlight one of the areas where the FTC 
needs authority most. The subprime loan market was an orgy of greed 
from a large number of lenders who knowingly put borrowers in mortgage 
loans that they could not afford--while at the same time loading up 
these loans with provisions that trigger large fees and penalties.
  The mortgage brokers ran ads from coast to coast--you have seen them: 
``Do you have bad credit? Do you have trouble getting a loan? Have you 
been missing payments on your home loan? Have you filed for bankruptcy? 
It doesn't matter. Come to us; we will give you a loan.''
  Many borrowers were brought in by teaser rates, interest-only 
payments, no payments for 12 months, etc. Loans had quick resets to 
higher and unaffordable interest rates. Loans had prepayment penalties. 
Marketed loan payment amounts did not include escrowed amounts, taxes, 
insurance, and other financial obligations. These unfair and deceitful 
advertisements are still on Web sites for lenders across the country 
today. The FTC needs the authority to stop this practice and resources 
to investigate and go after the bad actors.
  Let me tell you a bit about what the bill does. The bill provides for 
a 7-year

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reauthorization starting in 2009. We set the fiscal year 2009 funding 
at $264 million and increase it by 10 percent per year. In addition, we 
give them an additional $20 million to be used by the commission to 
improve technology in support of its competition and consumer 
protection missions.
  We give the FTC independent litigating authority so they won't have 
to refer their cases to the Department of Justice. We also give the FTC 
the authority to give preference in the hiring process to 
administrative law judges who have experience in their issues.
  We provide the FTC the authority to commence a civil action to 
recover civil penalties in a district court for any violation of the 
FTC Act.
  We extend their jurisdiction to allow them to go after nonprofit 
entities as well, so bad actors cannot hide behind nonprofit status, 
and we allow them to go after those aiding and abetting an FTC 
violation.
  We also give them the authority, by majority vote of the full 
commission, to waive their current rulemaking requirements for any rule 
involving a consumer protection matter.
  We require the FTC to conduct a rulemaking under the Administrative 
Procedures Act, APA, which is faster than their current Magnuson-Moss 
authority, in the area of subprime loans. The commission has sent 200 
warning letters to mortgage advertisers and is conducting several 
investigations of mortgage advertisers and subprime lenders. In 
addition, the FTC has brought 21 cases in the last decade. But they 
haven't had the opportunity to review the bad practices and create a 
rule preventing their reoccurrence. We give them authority to create a 
rule preventing unfair or deceptive behavior by lenders and allow the 
State attorneys general to enforce the rule.
  Finally, we repeal the common carrier exemption as the FTC has long 
been requesting. There are too many problems in the telecommunications 
world that need to be addressed by the FTC--consumers should not be 
left unprotected. We also make sure that the State Do Not Call laws are 
not preempted by Federal regulations.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2831

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Trade Commission Reauthorization Act of 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of comments.
Sec. 2. Authorization of appropriations.
Sec. 3. Independent litigation authority.
Sec. 4. Specialized administrative law judges.
Sec. 5. Civil penalties for violations of the Federal Trade Commission 
              Act.
Sec. 6. Application of Federal Trade Commission Act to tax-exempt 
              organizations.
Sec. 7. Aiding and abetting a violation.
Sec. 8. Permissive administrative procedure for consumer protection 
              rules.
Sec. 9. Rulemaking procedure for subprime lending mortgages and 
              nontraditional mortgage loans.
Sec. 10. Harmonizing FTC rules with banking agency rulemaking.
Sec. 11. Enforcement by State attorneys general.
Sec. 12. Harmonization of national do-not-call registry and effect on 
              State laws.
Sec. 13. FTC study of alcoholic beverage marketing practices.
Sec. 14. Common carrier exception.

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       The text of section 25 of the Federal Trade Commission Act 
     (15 U.S.C. 57c) is amended to read as follows:
       ``(a) In General.--There are authorized to be appropriated 
     to carry out the functions, powers, and duties of the 
     Commission--
       ``(1) $264,000,000 for fiscal year 2009;
       ``(2) $290,400,000 for fiscal year 2010;
       ``(3) $319,400,000 for fiscal year 2011;
       ``(4) $351,400,000 for fiscal year 2012;
       ``(5) $386,500,000 for fiscal year 2013;
       ``(6) $425,200,000 for fiscal year 2014; and
       ``(7) $467,700,000 for fiscal year 2015.
       ``(b) Litigation and Internet Commerce Technology.--There 
     are authorized to be appropriated to the Commission 
     $20,000,000 for each of fiscal years 2009 through 2015 to be 
     used by the Commission to improve technology in support of 
     the Commission's competition and consumer protection 
     missions.
       ``(c) International Technical Assistance.--From amounts 
     appropriated pursuant to subsection (a), the Commission may 
     spend up to $10,000,000 for each of fiscal years 2009 through 
     2015 to continue and enhance its provision of international 
     technical assistance with respect to foreign consumer 
     protection and competition regimes.''.

     SEC. 3. INDEPENDENT LITIGATION AUTHORITY.

       Section 16(a) of the Federal Trade Commission Act (15 
     U.S.C. 56(a)) is amended--
       (1) by striking paragraph (1) and inserting ``(1) The 
     Commission may commence, defend, or intervene in, and 
     supervise the litigation of any civil action involving this 
     Act (including an action to collect a civil penalty) and any 
     appeal of such action in its own name by any of its attorneys 
     designated by it for such purpose. The Commission shall 
     notify the Attorney General of any such action and may 
     consult with the Attorney General with respect to any such 
     action or request the Attorney General on behalf of the 
     Commission to commence, defend, or intervene in any such 
     action.'';
       (2) by striking subparagraph (A) of paragraph (3) and 
     inserting ``(A) The Commission may represent itself through 
     any of its attorneys designated by it for such purpose before 
     the Supreme Court in any civil action in which the Commission 
     represented itself pursuant to paragraph (1) or (2) or may 
     request the Attorney General to represent the Commission 
     before the Supreme Court in any such action.''; and
       (3) by striking paragraph (4) and redesignating paragraph 
     (5) as paragraph (4).

     SEC. 4. SPECIALIZED ADMINISTRATIVE LAW JUDGES.

       (a) In General.--In appointing administrative law judges 
     under section 3105 of title 5, United States Code, to conduct 
     hearings and render initial decisions in formal adjudicative 
     matters before it, the Federal Trade Commission may give 
     preference to administrative law judges who have experience 
     with antitrust or trade regulation litigation and who are 
     familiar with the kinds of economic analysis associated with 
     such litigation.
       (b) Details.--If the Commission asks the Office of 
     Personnel Management to assign an administrative law judge 
     under section 3344 of title 5, United States Code, to conduct 
     a hearing or render an initial decision in a formal 
     adjudicative matter before it, the Commission may request the 
     assignment of an administrative law judge who has experience 
     with antitrust or trade regulation litigation and is familiar 
     with the kinds of economic analysis associated with such 
     litigation and the Office of Personnel Management shall 
     comply with the request to the maximum extent feasible.

     SEC. 5. CIVIL PENALTIES FOR VIOLATIONS OF THE FEDERAL TRADE 
                   COMMISSION ACT.

       Section 5(m)(1)(A) of the Federal Trade Commission Act (15 
     U.S.C. 45(m)(1)(A)) is amended--
       (1) by inserting ``this Act, or'' after ``violates'' the 
     first place it appears; and
       (2) by inserting ``a violation of this Act or such act is'' 
     after ``such act is''.

     SEC. 6. APPLICATION OF FEDERAL TRADE COMMISSION ACT TO TAX-
                   EXEMPT ORGANIZATIONS.

       Section 4 of the Federal Trade Commission Act (15 U.S.C. 
     44) is amended by striking ``members.'' in the second full 
     paragraph and inserting ``members, and includes an 
     organization described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 that is exempt from taxation under 
     section 501(a) of such Code.''.

     SEC. 7. AIDING AND ABETTING A VIOLATION.

       Section 10 of the Federal Trade Commission Act (15 U.S.C. 
     50) is amended by adding at the end thereof the following:
       ``It is unlawful for any person to aid or abet another in 
     violating any provision of this Act or any other Act 
     enforceable by the Commission.''.

     SEC. 8. PERMISSIVE ADMINISTRATIVE PROCEDURE FOR CONSUMER 
                   PROTECTION RULES.

       (a) In General.--Section 18 of the Federal Trade Commission 
     Act (15 U.S.C. 57a) is amended by adding at the end thereof 
     the following:
       ``(k) Alternative Rulemaking Procedure.--The Commission 
     may, by majority vote of the full Commission, dispense with 
     the requirements of other provisions of this section and of 
     section 22 of this Act with respect to rulemaking involving a 
     consumer protection matter (as determined by the Commission). 
     If the Commission dispenses with such requirements with 
     respect to such a rulemaking, it shall conduct such 
     rulemaking in accordance with section 553 of title 5, United 
     States Code, and in such case the provisions for judicial 
     review of rules promulgated under section 553 of title 5 
     shall apply.''.

     SEC. 9. RULEMAKING PROCEDURE FOR SUBPRIME LENDING MORTGAGES 
                   AND NONTRADITIONAL MORTGAGE LOANS.

       Section 18 of the Federal Trade Commission Act (15 U.S.C. 
     57a), as amended by section 8, is further amended by adding 
     at the end thereof the following:
       ``(l) Special Rule for Certain Mortgage-related 
     Rulemakings.--Notwithstanding any other provision of this 
     section, section

[[Page 5356]]

     22 of this Act, or any other provision of law, the Commission 
     shall conduct rulemaking proceedings with respect to subprime 
     mortgage lending and nontraditional mortgage loans in 
     accordance with section 553 of title 5, United States Code, 
     and the provisions for judicial review of rules promulgated 
     under section 553 of title 5 shall apply.''.

     SEC. 10. HARMONIZING FTC RULES WITH BANKING AGENCY 
                   RULEMAKING.

       (a) In General.--The second sentence of section 18(f)(1) of 
     the Federal Trade Commission Act (15 U.S.C. 57a(f)(1)) is 
     amended--
       (1) by striking ``The Board of Governors of the Federal 
     Reserve System (with respect to banks) and the Federal Home 
     Loan Bank Board (with respect to savings and loan 
     institutions described in paragraph (3))'' and inserting 
     ``Each Federal banking agency (with respect to the depository 
     institutions each such agency supervises)''; and
       (2) by inserting ``in consultation with the Commission'' 
     after ``shall prescribe regulations''.
       (b) FTC Concurrent Rulemaking.--Section 18(f)(1) of such 
     Act is further amended by inserting after the second sentence 
     the following: ``Such regulations shall be prescribed jointly 
     by such agencies to the extent practicable. Notwithstanding 
     any other provision of this section, whenever such agencies 
     commence such a rulemaking proceeding, the Commission, with 
     respect to the entities within its jurisdiction under this 
     Act, may commence a rulemaking proceeding and prescribe 
     regulations in accordance with section 553 of title 5, United 
     States Code. If the Commission commences such a rulemaking 
     proceeding, the Commission, the Federal banking agencies, and 
     the National Credit Union Administration Board shall consult 
     and coordinate with each other so that the regulations 
     prescribed by each such agency are consistent with and 
     comparable to the regulations prescribed by each other such 
     agency to the extent practicable.''.
       (c) GAO Study and Report.--Not later than 18 months after 
     the date of enactment of this Act, the Comptroller General 
     shall transmit to Congress a report on the status of 
     regulations of the Federal banking agencies and the National 
     Credit Union Administration regarding unfair and deceptive 
     acts or practices by the depository institutions.
       (d) Technical and Conforming Amendments.--Section 18(f) of 
     the Federal Trade Commission Act (15 U.S.C. 57a(f)) is 
     amended--
       (1) in the first sentence of paragraph (1)--
       (A) by striking ``banks or savings and loan institutions 
     described in paragraph (3), each agency specified in 
     paragraph (2) or (3) of this subsection shall establish'' and 
     inserting ``depository institutions and Federal credit 
     unions, the Federal banking agencies and the National Credit 
     Union Administration Board shall each establish''; and
       (B) by striking ``banks or savings and loan institutions 
     described in paragraph (3), subject to its jurisdiction'' 
     before the period and inserting ``depository institutions or 
     Federal credit unions subject to the jurisdiction of such 
     agency or Board'';
       (2) in the sixth sentence of paragraph (1) (as amended by 
     subsection (b))--
       (A) by striking ``each such Board'' and inserting ``each 
     such banking agency and the National Credit Union 
     Administration Board'';
       (B) by striking ``banks or savings and loan institutions 
     described in paragraph (3)'' each place such term appears and 
     inserting ``depository institutions subject to the 
     jurisdiction of such agency'';
       (C) by striking ``(A) any such Board'' and inserting ``(A) 
     any such Federal banking agency or the National Credit Union 
     Administration Board''; and
       (D) by striking ``with respect to banks, savings and loan 
     institutions'' and inserting ``with respect to depository 
     institutions'';
       (3) by adding at the end of paragraph (1) the following new 
     sentence: ``For purposes of this subsection, the terms 
     `Federal banking agency' and `depository institution' have 
     the same meaning as in section 3 of the Federal Deposit 
     Insurance Act.'';
       (4) in paragraph (2)(C), by inserting ``than'' after 
     ``(other'';
       (5) in paragraph (3), by inserting ``by the Director of the 
     Office of Thrift Supervision'' before the period at the end;
       (6) in paragraph (4), by inserting ``by the National Credit 
     Union Administration'' before the period at the end; and
       (7) in paragraph (6), by striking ``the Board of Governors 
     of the Federal Reserve System'' and inserting ``any Federal 
     banking agency or the National Credit Union Administration 
     Board''.

     SEC. 11. ENFORCEMENT BY STATE ATTORNEYS GENERAL

       (a) In General.--Except as provided in subsection (f), a 
     State, as parens patriae, may bring a civil action on behalf 
     of its residents in an appropriate State or district court of 
     the United States to enforce the provisions of the Federal 
     Trade Commission Act or any other Act enforced by the Federal 
     Trade Commission to obtain penalties and relief provided 
     under such Acts whenever the attorney general of the State 
     has reason to believe that the interests of the residents of 
     the State have been or are being threatened or adversely 
     affected by a violation of a subprime mortgage lending rule 
     or a nontraditional mortgage loan rule promulgated by the 
     Federal Trade Commission.
       (b) Notice.--The State shall serve written notice to the 
     Commission of any civil action under subsection (a) at least 
     60 days prior to initiating such civil action. The notice 
     shall include a copy of the complaint to be filed to initiate 
     such civil action, except that if it is not feasible for the 
     State to provide such prior notice, the State shall provide 
     notice immediately upon instituting such civil action.
       (c) Intervention by FTC.--Upon receiving the notice 
     required by subsection (b), the Commission may intervene in 
     such civil action and upon intervening--
       (1) be heard on all matters arising in such civil action;
       (2) remove the action to the appropriate United States 
     district court; and
       (3) file petitions for appeal of a decision in such civil 
     action.
       (d) Savings Clause.--Nothing in this section shall prevent 
     the attorney general of a State from exercising the powers 
     conferred on the attorney general by the laws of such State 
     to conduct investigations or to administer oaths or 
     affirmations or to compel the attendance of witnesses or the 
     production of documentary and other evidence. Nothing in this 
     section shall prohibit the attorney general of a State, or 
     other authorized State officer, from proceeding in State or 
     Federal court on the basis of an alleged violation of any 
     civil or criminal statute of that State.
       (e) Venue; Service of Process; Joinder.--In a civil action 
     brought under subsection (a)--
       (1) the venue shall be a judicial district in which the 
     lender or a related party operates or is authorized to do 
     business;
       (2) process may be served without regard to the territorial 
     limits of the district or of the State in which the civil 
     action is instituted; and
       (3) a person who participated with a lender or related 
     party to an alleged violation that is being litigated in the 
     civil action may be joined in the civil action without regard 
     to the residence of the person.
       (f) Preemptive Action by FTC.--Whenever a civil action or 
     an administrative action has been instituted by or on behalf 
     of the Commission for violation of any rule described under 
     (a), no State may, during the pendency of such action 
     instituted by or on behalf of the Commission, institute a 
     civil action under subsection (a) against any defendant named 
     in the complaint in such action for violation of any rule as 
     alleged in such complaint.
       (g) Award of Costs and Fees.--If the attorney general of a 
     State prevails in any civil action under subsection (a), the 
     State can recover reasonable costs and attorney fees from the 
     lender or related party.

     SEC. 12. HARMONIZATION OF NATIONAL DO-NOT-CALL REGISTRY AND 
                   EFFECT ON STATE LAWS.

       (a) Amendment of the Telemarketing and Consumer Fraud and 
     Abuse Prevention Act.--Section 5 of the Telemarketing and 
     Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6105) is 
     amended by adding at the end thereof the following:
       ``(d) State Laws Not Preempted.--Nothing in this Act or the 
     Do-Not-Call Implementation Act (15 U.S.C. 6101 note) preempts 
     any State law that imposes more restrictive requirements on 
     intrastate or interstate telemarketing to telephone numbers 
     on a do-notWithin 2 years of the completion of the Federal 
     Trade Commission study entitled "Self Regulation in the 
     Alcohol Industry"-call registry maintained by that State.''.
       (b) Conforming Amendment.--Section 227(e)(1) of the 
     Communications Act of 1934 (47 U.S.C. 227(e)(1)) is amended 
     by inserting ``interstate or'' after ``restrictive''.

     SEC. 13. FTC STUDY OF ALCOHOLIC BEVERAGE MARKETING PRACTICES.

       Within 2 years after the Federal Trade Commission completes 
     its study entitled Self-Regulation in the Alcohol Industry 
     and every 2 years thereafter, the Commission shall transmit a 
     report to the Congress on advertising and marketing practices 
     for alcoholic beverages, together with such recommendations, 
     including legislative recommendations, as the Commission 
     deems appropriate. In preparing the report, the Commission 
     shall consider information contained in reports by the 
     Secretary of Health and Human services under section 519B of 
     the Public Health Service Act (42 U.S.C. 290bb-25b), and 
     shall include, to the extent feasible, data on measured and 
     unmeasured media by brand and type of beverage, and data on 
     expenditures for slotting and discounting.

     SEC. 14. COMMON CARRIER EXCEPTION.

       Section 4 of the Federal Trade Commission Act (15 U.S.C. 
     44) is amended by striking the paragraph containing the 
     definition of the term ``Acts to regulate commerce'' and 
     inserting the following:
       `` `Acts to regulate commerce' means subtitle IV of title 
     49, United States Code, and all Acts amendatory thereof and 
     supplementary thereto.''.

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