House Report 105-85 - TRADE AGENCIES AUTHORIZATIONS

[House Report 105-85]
[From the U.S. Government Publishing Office]

105th Congress Report
HOUSE OF REPRESENTATIVES

1st Session 105-85
_______________________________________________________________________

TRADE AGENCIES AUTHORIZATIONS

_______

May 1, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______________________________________________________________________

Mr. Archer, from the Committee on Ways and Means, submitted the
following

R E P O R T

[To accompany H.R. 1463]

[Including cost estimate of the Congressional Budget Office]

The Committee on Ways and Means, to whom was referred the
bill (H.R. 1463) to authorize appropriations for fiscal years
1998 and 1999 for the Customs Service, the Office of the United
States Trade Representative, and the International Trade
Commission, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:

SECTION 1. CUSTOMS AND TRADE AGENCY AUTHORIZATIONS FOR FISCAL YEARS
1998 AND 1999.

(a) United States Customs Service.--
(1) Authorization of appropriations.--Section 301(b) of the
Customs Procedural Reform and Simplification Act of 1978 (19
U.S.C. 2075(b)) is amended to read as follows:
``(b) Authorization of Appropriations.--
``(1) For noncommercial operations.--There are authorized to
be appropriated for the salaries and expenses of the Customs
Service that are incurred in noncommercial operations not to
exceed the following:
``(A) $668,397,000 for fiscal year 1998.
``(B) $684,018,000 for fiscal year 1999.
``(2) For commercial operations.--(A) There are authorized to
be appropriated for the salaries and expenses of the Customs
Service that are incurred in commercial operations not less
than the following:
``(i) $901,441,000 for fiscal year 1998.
``(ii) $930,447,000 for fiscal year 1999.
``(B) The monies authorized to be appropriated under
subparagraph (A) for any fiscal year, except for such sums as
may be necessary for the salaries and expenses of the Customs
Service that are incurred in connection with the processing of
merchandise that is exempt from the fees imposed under section
13031(a) (9) and (10) of the Consolidated Omnibus Budget
Reconciliation Act of 1985, shall be appropriated from the
Customs User Fee Account.
``(3) For air and marine interdiction.--There are authorized
to be appropriated for the operation (including salaries and
expenses) and maintenance of the air and marine interdiction
programs of the Customs Service not to exceed the following:
``(A) $95,258,000 for fiscal year 1998.
``(B) $98,226,000 for fiscal year 1999.''.
(2) Submission of out-year budget projections.--Section
301(a) of the Customs Procedural Reform and Simplification Act
of 1978 (19 U.S.C. 2075(a)) is amended by adding at the end the
following:
``(3) By no later than the date on which the President submits to the
Congress the budget of the United States Government for a fiscal year,
the Commissioner of Customs shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of
the Senate the projected amount of funds for the succeeding fiscal year
that will be necessary for the operations of the Customs Service as
provided for in subsection (b).''.
(b) office of the United States Trade Representative.--
(1) Authorization of appropriations.--Section 141(g)(1) of
the Trade Act of 1974 (19 U.S.C. 2171(g)(1)) is amended to read
as follows:
``(g)(1)(A) There are authorized to be appropriated to the Office for
the purposes of carrying out its functions not to exceed the following:
``(i) $22,092,000 for fiscal year 1998.
``(ii) $24,300,000 for fiscal year 1999.
``(B) Of the amounts authorized to be appropriated under subparagraph
(A) for any fiscal year--
``(i) not to exceed $98,000 may be used for entertainment and
representation expenses of the Office; and
``(ii) not to exceed $2,500,000 shall remain available until
expended.''.
(2) Submission of out-year budget projections.--Section
141(g) of the Trade Act of 1974 is amended by adding at the end
the following:
``(3) By no later than the date on which the President submits to the
Congress the budget of the United States Government for a fiscal year,
the United States Trade Representative shall submit to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate the projected amount of funds for the succeeding
fiscal year that will be necessary for the Office to carry out its
functions.''.
(c) United States International Trade Commission.--
(1) Authorization of appropriations.--Section 330(e)(2) of
the Tariff Act of 1930 (19 U.S.C. 1330(e)(2)) is amended to
read as follows:
``(2)(A) There are authorized to be appropriated to the Commission
for necessary expenses (including the rental of conference rooms in the
District of Columbia and elsewhere) not to exceed the following:
``(i) $41,980,000 for fiscal year 1998.
``(ii) $46,125,400 for fiscal year 1999.
``(B) Not to exceed $2,500 of the amount authorized to be
appropriated for any fiscal year under subparagraph (A) may be used,
subject to the approval of the Chairman of the Commission, for
reception and entertainment expenses.
``(C) No part of any sum that is appropriated under the authority of
subparagraph (A) may be used by the Commission in the making of any
special study, investigation, or report that is requested by any agency
of the executive branch unless that agency reimburses the Commission
for the cost thereof.''.
(2) Submission of out-year budget projections.--Section
330(e) of the Tariff Act of 1930 is amended by adding at the
end the following:
``(4) By no later than the date on which the President submits to the
Congress the budget of the United States Government for a fiscal year,
the Commission shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the Senate the
projected amount of funds for the succeeding fiscal year that will be
necessary for the Commission to carry out its functions.''.

I. INTRODUCTION

A. Purpose and Summary

H.R. 1463 would authorize appropriations for fiscal years
(FY) 1998 and 1999 for the U.S. Customs Service (Customs), the
Office of the U.S. Trade Representative (USTR), and the U.S.
International Trade Commission (ITC). H.R. 1463 would also
require out-year budget projections such that, no later than
the date on which the President submits the budget to the
Congress for a fiscal year, Customs, USTR, and the ITC would be
required to submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate projected amounts of funds necessary for the succeeding
fiscal year.

B. Background and Need for Legislation

H.R. 1463 would provide a two-year authorization of
appropriations for Customs, USTR, and the ITC. The statutory
basis for the authorizations of appropriations for each of the
three trade agencies is as follows: Customs, section 301(b) of
the Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)); USTR, section 141(g)(1) of the Trade Act
of 1974 (19 U.S.C. 2171(g)(1)); and the ITC, section 330 of the
Tariff Act of 1930, as amended (19 U.S.C. 1330(e)(2)). The most
recent authorizations of appropriations for Customs, USTR, and
the ITC were included in the Customs and Trade Act of 1990
[P.L. 101-382]. These authorizations expired at the end of FY
1992. Legislation is necessary to authorize subsequent
appropriations to fund the operations of these agencies for FY
1998 and FY 1999.
The Committee on Ways and Means has adopted a two-year
authorization process to provide Customs, USTR, and the ITC
with predictable guidance as they plan their budgets, as well
as guidance from the Committees for the appropriations process.
In preparation for consideration of H.R. 1463, the Committee
considered the President's budget for FY 1998 and requested
projected budget summaries from each of the agencies for FY
1999. The Committee was advised by Customs and USTR that,
pursuant to the policies of the Office of Management and Budget
(OMB), these two agencies could not provide an official
proposal for FY 1999. As the ITC's budget is not reviewed by
OMB, the Commission was able to provide a projected budget. In
the end, both Customs and USTR were able to provide the
Committee with unofficial projections for FY 1999, reflecting
the funding levels which these agencies anticipate submitting
to OMB.
To assist Customs, USTR, and the ITC in the future in
providing the Committee on Ways and Means with budget
projections, the Committee considered the need for legislation
to require these agencies to submit to the Committee on Ways
and Means and the Committee on Finance of the Senate budget
projections for the succeeding fiscal year on or before the
date on which the President submits the budget for a current
fiscal year.

C. Legislative History

Committee bill

On March 13, 1997 the Subcommittee on Trade of the
Committee on Ways and Means met to consider a draft bill
identical to H.R. 1463, as introduced, and ordered the draft
bill to be favorably reported by voice vote, without amendment,
with a quorum present.
H.R. 1463 was introduced by Mr. Crane of Illinois, Chairman
of the Subcommittee on Trade, Committee on Ways and Means, on
April 28, 1997, and was subsequently referred to the Committee
on Ways and Means.
The Committee on Ways and Means met to consider H.R. 1463
on April 30, 1997, and approved by voice vote one amendment
offered by Mr. Shaw of Florida to reallocate funds within
section 1(a) of the bill concerning the authorization of
appropriations for Customs. The Committee ordered favorably
reported H.R. 1463, as amended, by voice vote, with a quorum
present.

Legislative hearing

The Subcommittee on Trade of the Committee on Ways and
Means held a public hearing on March 11, 1997 on the budget
authorizations for FY 1998 and FY 1999 for Customs, USTR, and
the ITC. Representatives of each of these agencies testified as
well as private sector witnesses.

II. EXPLANATION OF THE BILL

1. United States Customs Service Authorization for Fiscal Years 1998
and 1999 (Sec. 1(A) of the Bill)

Present law

The Customs Procedural Reform and Simplification Act of
1978 [P.L. 95-110] provides for a two-year authorization of
appropriations for the U.S. Customs Service. That law, as
amended by section 8102 of the Omnibus Budget Reconciliation
Act of 1986 [P.L. 99-509], first outlined separate amounts for
commercial and noncommercial operations for the salaries and
expenses portion of the Customs authorizations.
The most recent authorization for Customs (under section
101 of the Customs and Trade Act of 1990 [P.L. 101-382])
provided $1,247,884,000 for salaries and expenses, and
$150,199,000 for operations and maintenance of the air
interdiction program. Appropriations for operations and
maintenance of the marine interdiction program were added to
this account by the Treasury Appropriations Act for Fiscal Year
1992 [P.L. 102-141]. The Act authorized $542,091,000 for
noncommercial operations in FY 1992 and $705,793,000 for
commercial operations in FY 1992.
Appropriations for Customs for FY 1997 were included in
P.L. 104-208, making omnibus consolidated appropriations for
the fiscal year ending September 30, 1997. The total
appropriation for FY 1997 was $1,638,354,000, including
$1,549,585,000 for salaries and expenses and $83,363,000 for
operations and maintenance of the air and marine interdiction
programs.
Separate minimum and maximum amounts for commercial and
noncommercial operations for the salaries and expenses portion
of Customs authorizations, and maximum amounts for the air and
marine interdiction programs are intended to provide guidance
to Customs in the allocation of resources.

Explanation of provision

Section 1(a) of H.R. 1463, as amended, would amend section
301(b) of the Customs Procedural Reform and Simplification Act
of 1978 to authorize appropriations for Customs not to exceed
$668,397,000 in FY 1998 and $684,018,000 in FY 1999 for
salaries and expenses incurred in noncommercial operations, and
not less than $901,441,000 in FY 1998 and $930,447,000 in FY
1999 for salaries and expenses incurred in commercial
operations. H.R. 1463 would require that any money appropriated
for commercial operations shall come from the Customs User Fee
Account, except any sums necessary for salaries and expenses in
connection with merchandise processing fees. For operations and
maintenance of the air and marine interdiction programs, H.R.
1463 would authorize appropriations not to exceed $95,258,000
in FY 1998 and $98,226,000 in FY 1999.
Section 1(a) would also require out-year budget projections
such that, no later than the date on which the President
submits the budget to the Congress for a fiscal year, Customs
would be required to submit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance of
the Senate projected amounts of funds necessary for the
succeeding fiscal year. In addition, Customs would be required
to provide projections for minimum amounts to be authorized for
commercial operations under the salaries and expenses account;
maximum amounts to be authorized for noncommercial operations
under the salaries and expenses account; and, maximum amounts
to be appropriated for the operation of Customs air and marine
interdiction programs.

Reasons for change

The Committee recognizes the efforts of the U.S. Customs
Service in reorganizing and modernizing its operations. The
significant changes in culture and process underway at Customs
promise to improve the delivery of services to the trade
community and benefit American taxpayers in cost savings. The
Committee supports Customs' reorganization and modernization
efforts and will continue to follow these plans closely as they
unfold.
The Committee is concerned about the decline in the number
of Marine Enforcement Officers, Special Agents, and equipment
for the Customs marine interdiction program, particularly in
the South Florida area. Following the successful model of
Operation Hardline on the Southwest Border and Operation
Gateway in Puerto Rico, the President's budget request for FY
1998 recognizes the need to respond to the shift in the drug-
smuggling threat to the South Florida area. Therefore, the
Committee has identified the need for Customs to dedicate
additional resources to foster law enforcement activities such
as rebuilding the marine interdiction program in South Florida,
including platform, interceptor, and utility boats, Marine
Enforcement Officers, Special Agents, and Intelligence Research
Specialists.
In addition, the Committee is concerned about the need for
Customs to increase the overall level of Special Agents
dedicated to counter-narcotics and anti-money laundering
activities, including the need to relocate Special Agents to
high-threat drug zones. For example, the efforts of Customs
Special Agents in initiating the Treasury Department's
Geographical Targeting Order in the New York metropolitan area
has led to a notable decline in money laundering activities.
To achieve these goals, the Committee amended the
allocation of funds authorized within the Customs portion of
H.R. 1463, as introduced. Specifically, for each of FY 1998 and
FY 1999, the Committee has decreased by $5 million the minimum
amount which can be appropriated to Customs for commercial
activities; increased by $2.5 million the maximum amount which
may be appropriated to Customs for noncommercial activities;
and increased by $2.5 million the maximum amount which may be
appropriated to Customs for the air and marine interdiction
programs. It is the view of the Committee that these additional
funds could be used to bolster Customs' law enforcement
efforts, not only in marine interdiction, but also
investigations by Special Agents of anti-narcotics and anti-
money laundering activities in general.
Overall, H.R. 1463, as amended, would meet Customs' total
budget request for FY 1998 of $1,690,602,000 and 17,193 full-
time equivalent (FTE) positions. This request represents an
increase of $52,248,000 and 201 FTEs from the FY 1997 operating
level of $1,638,354,000. Customs' budget request also includes
$20,100,000 from the Crime Bill Trust Fund, $2,406,000 from the
Small Airports Fee, and $3,000,000 from the Harbor Maintenance
Trust Fund, which do not require Committee authorization.
The allocation for noncommercial operations authorized by
H.R. 1463 would include Customs' budget request of $5,512,000
for construction of an airplane hangar in Corpus Christi,
Texas.
The operations and maintenance account funds Customs air
and marine programs, the objectives of which are to detect,
sort, track, and apprehend aircraft and vessels involved in
smuggling, and to provide assistance to other Customs law-
enforcement efforts. As indicated above, H.R. 1463, as amended,
would increase by $2.5 million Customs' budget request of
$92,758,000 for operations and maintenance of the air and
marine interdiction programs for fiscal year 1998. This would
not require any additional FTEs. H.R. 1463, as amended, would
also increase by $2.5 million Customs' budget request of
$95,726,000 for operations and maintenance of the air and
marine interdiction programs for fiscal year 1999.
H.R. 1463 would also meet Customs' overall budget request
of $1,720,400,000 for salaries and expenses for FY 1999 for
combined noncommercial and commercial operations.
To assist Customs in the future in providing the Committee
with budget projections for succeeding fiscal years, H.R. 1463
would require Customs to submit to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate, no later than the date on which the
President submits the budget for a fiscal year, projected
amounts of funds necessary for the succeeding fiscal year. To
ensure that sufficient funds are allocated to commercial
facilitation, Customs would also be required to provide
projections for minimum amounts to be appropriated for
commercial operations; maximum amounts to be appropriated for
noncommercial operations; and maximum amounts to be
appropriated for the operation of Customs air and marine
interdiction programs.

Effective date

The provision would be effective upon enactment.

2. Office of the United States Trade Representative Authorization for
Fiscal Years 1998 and 1999 (Sec. 1(B) of the Bill)

Present law

Section 141(g) of the Trade Act of 1974, as amended,
provides for a two-year authorization of appropriations for
USTR. The most recent authorization (under section 103 of the
Customs and Trade Act of 1990 [P.L. 101-382]) was $23,250,000
for FY 1991 and $21,077,000 for FY 1992.
Appropriations for USTR for FY 1997 were included in P.L.
104-208, making omnibus consolidated appropriations for the
fiscal year ending September 30, 1997. The total appropriation
for FY 1997 was $21,449,000. Of these amounts, not more than
$98,000 may be used for entertainment and representation
expenses, and not more than $2,500,000 shall remain available
until expended.

Explanation of provision

Section 1(b) of H.R. 1463 would amend section 141(g)(1) of
the Trade Act of 1974 to provide a two-year authorization of
appropriations to USTR totaling $22,092,000 for FY 1998 and
$24,300,000 for FY 1999. Of these amounts, not more than
$98,000 may be used for entertainment and representation
expenses, and not more than $2,500,000 shall remain available
until expended.
The provision would also require USTR to submit to the
Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate, no later than the date
on which the President submits the budget to the Congress for a
fiscal year, projected amounts of funds necessary for the
succeeding fiscal year.

Reason for change

H.R. 1463 would reflect USTR's proposed FY 1998 budget
request of $22,092,000, a $643,000 increase in budget authority
from FY 1997. The FY 1998 budget would maintain the current
level of 164 FTEs. The increase in USTR's budget request for FY
1998 primarily covers a pay increase of 2.8 percent for USTR
employees and enables funding for the full level of 164 FTEs.
This is a modest request from an agency with primary
responsibility for developing, coordinating, and articulating
U.S. international trade policy; advising the President and the
Congress on trade policy; and conducting international trade
negotiations. The request is justified by the agency's
statutory functions and the full agenda of international trade
policy issues and negotiations.
H.R. 1463 also would reflect USTR's projected budget
proposal for FY 1999 of $24,300,000, a $2.2 million increase in
budget authority from FY 1998.
To assist USTR in the future in providing the Committee
with budget projections for succeeding fiscal years, H.R. 1463
would require USTR to submit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance of
the Senate, no later than the date on which the President
submits the budget to the Congress for a fiscal year, projected
amounts of funds necessary for the succeeding fiscal year.

Effective date

The provision would be effective upon enactment.

3. United States International Trade Commission Authorization for
Fiscal Years 1998 and 1999 (Sec. 1(C) of the Bill)

Present law

Section 330(e)(2) of the Tariff Act of 1930 provides for a
two-year authorization of appropriations for the ITC. The most
recent authorization (under section 101 of Public Law 101-382,
the Customs and Trade Act of 1990 [P.L. 101-382]) was
$41,170,000 for FY 1991 and $44,052,000 for FY 1992 for the
ITC.
Appropriations for the ITC for FY 1997 were included in
P.L. 104-208, making omnibus consolidated appropriations for
the fiscal year ending September 30, 1997. The total
appropriation for FY 1997 was $40,850,000, of which not more
than $2,500 is authorized to be used for reception and
entertainment expenses, subject to the approval of the Chairman
of the Commission.

Explanation of provision

Section 1(c) of H.R. 1463 would amend section 330(e)(2) of
the Tariff Act of 1930 toprovide a two-year authorization of
appropriations to the ITC of $41,980,000 for FY 1998 and $46,125,000
for FY 1999. Of the amounts authorized, not more than $ 2,500 may be
used for reception and entertainment expenses, subject to the approval
of the Chairman of the Commission.
The provision would also require the ITC to submit to the
Committee on Ways and Means and the Committee on Finance of the
Senate, no later than the date on which the President submits
the budget for a fiscal year, projected amounts of funds
necessary for the succeeding fiscal year.

Reasons for change

H.R. 1463 would reflect the ITC's budget request for FY
1998 of $41,980,000. This represents a 2.8 percent increase
over the FY 1997 funding level of $40,850,000, and maintains
the Commission's staffing level at 378 FTEs. The requested
increase primarily covers the President's proposed increase in
salaries and benefits for personnel. H.R. 1463 also would
reflect the ITC request of $46,125,400 for FY 1999, a 9.9
percent increase in funding over FY 1998 to cover the costs of
statutorily mandated reviews of outstanding antidumping and
countervailing duty orders.
The Committee commends the efforts of the ITC in
streamlining its operations. Since FY 1992, the Commission has
reduced its staffing by over 20 percent from 472 FTEs,
consolidated offices, and procured needed equipment to boost
the productivity of remaining staff.
The Uruguay Round Agreements Act [P.L. 103-465] poses a
daunting new challenge to the Commission. Beginning in the
summer of 1998, the Commission will begin reviewing 315
outstanding antidumping and countervailing duty orders to
determine whether terminating them would lead to a continuation
or recurrence of material injury. This new class of cases--
``sunset'' reviews--is estimated to double the agency's docket
under the antidumping and countervailing duty laws and triple
its litigation caseload. The Commission projects that it will
need to allocate an additional 59 work-years in response to
this increased caseload. It is estimated that 19 of these work-
years will be absorbed through the allocation of existing
staff.
The Committee urges the Department of Commerce to cooperate
with the Commission in the timely scheduling and initiation of
these sunset reviews to ensure the most efficient utilization
of the Commission's resources.
The Committee believes that it is important that the United
States provide the necessary resources to ensure the full
implementation of its obligations under the Uruguay Round
Agreements Act with respect to sunset reviews. In addition, the
Committee is concerned that the Commission should not deplete
its resources in these efforts such that it will have
difficulty fulfilling its other statutory functions, especially
those under the global and bilateral safeguard laws and section
337 of the Tariff Act of 1930. The Committee also is concerned
that the Commission continue to be able to provide the
statistical studies, fact-finding reports, and technical
assistance on tariff and trade matters that Congress and the
President may require in considering new free-trade initiatives
with the Asia Pacific Economic Cooperation group and with Latin
American trading partners, as well as other trade negotiation
initiatives. The Commission is urged to consult with the
Committee should its increased work load become too great a
strain on its resources.
To assist the ITC in the future in providing the Committee
with budget projections for succeeding fiscal years, H.R. 1463
would require the ITC to submit to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate, no later than the date on which the
President submits the budget for a fiscal year, projected
amounts of funds necessary for the succeeding fiscal year.

Effective date

The provision would be effective upon enactment.

III. VOTES OF THE COMMITTEE

In compliance with clause 2(l)(2)(B) of the Rules of the
House of Representatives, the following statements are made
concerning the votes of the Committee in its consideration of
the bill H.R. 1463.

Motion to report the bill

The bill, H.R. 1463 was ordered favorably reported, as
amended, by voice vote, on April 30, 1997, with a quorum
present.

IV. BUDGET EFFECTS

A. Committee Estimate on Budgetary Effects

In compliance with clause 7(a) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of H.R. 1463, as reported:
The Committee agrees with the estimate prepared by the
Congressional Budget Office, which is attached.

B. Statement Regarding New Budget Authority and Tax Expenditures

In compliance with subdivision (B) of clause 2(l)(3) of
rule XI of the Rules of the House of Representatives, the
Committee states that the provisions of H.R. 1463 do not
involve any new budget authority, or any increase or decrease
in revenues or tax expenditures.

C. Cost Estimate Prepared by the Congressional Budget Office

In compliance with subdivision (C) of clause 2(l)(3) of
rule XI of the Rules of the House of Representatives, requiring
a cost estimate prepared by the Congressional Budget Office,
the following report prepared by CBO is provided.
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 30, 1997.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1463, a bill to
authorize appropriations for fiscal years 1998 and 1999 for the
Customs Service, the Office of the United States Trade
Representative, and the International Trade Commission.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
June E. O'Neill, Director.
Enclosure.

H.R. 1463--A bill to authorize appropriations for fiscal years 1998 and
1999 for the Customs Service, the Office of the United States
Trade Representative, and the International Trade Commission

Summary

H.R. 1463 would authorize appropriations for 1998 and 1999
for the Customs Service, the Office of the United States Trade
Representative (OUSTR), and the International Trade Commission
(ITC). For the Customs Service, the amounts authorized would
total about $1.6 billion for salaries and expenses and about
$95 million for operations and maintenance for each of fiscal
years 1998 and 1999. Also, for 1998 and 1999, the bill would
authorize annual appropriations of about $25 million for the
OUSTR and about $45 million for the ITC.
Assuming appropriation of the authorized amounts, CBO
estimates that enacting H.R. 1463 would result in additional
discretionary spending of about $3.5 billion over the 1998-2002
period. The bill would not affect direct spending or receipts;
therefore, pay-as-you-go procedures would not apply. H.R. 1463
contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act of 1995 (UMRA) and
would impose no costs on state, local, or tribal governments.

Estimated Cost to the Federal Government

The estimated budgetary impact of H.R. 1463 is shown in the
table on the following page. For the purposes of this estimate,
CBO assumes that all amounts authorized in H.R. 1463 will be
appropriated by the start of each fiscal year and that outlays
will follow the historical spending patterns of the agencies
funded.

[By fiscal years in millions of dollars]
----------------------------------------------------------------------------------------------------------------
1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
Spending under current law:
Budget authority\1\................................... 1,718 0 0 0 0 0
Estimated outlays..................................... 1,687 187 0 0 0 0
Proposed changes:
Authorization level................................... 0 1,729 1,783 0 0 0
Estimated outlays..................................... 0 1,537 1,776 197 0 0
Spending under H.R. 1463:
Authorization level\1\................................ 1,718 1,729 1,783 0 0 0
Estimated outlays..................................... 1,687 1,724 1,776 197 0 0
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 level is the amount appropriated for the Customs Service, the OUSTR, and the ITC in that year.

The costs of this legislation fall within budget functions
150 (international affairs), 750 (administration of justice),
and 800 (general government).
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 1463
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Mark Grabowicz.
Estimate approved by: Robert A. Sunshine, Deputy Assistant
Director for Budget Analysis.

V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

A. Committee Oversight Findings and Recommendations

With respect to subdivision (A) of clause 2(l)(3) of rule
XI of the rules of the House of Representatives (relating to
oversight findings), the Committee advises that it was as a
result of the Committee's oversight activities concerning the
budget authorizations for Customs, USTR, and the ITC that the
Committee concluded that it is appropriate to enact the
provisions contained in the bill.

B. Summary of Findings and Recommendations of the Committee on
Government Reform and Oversight

With respect to subdivision (D) of clause 2(l)(3) of rule
XI of the Rules of the House of Representatives (relating to
oversight findings), the Committee advises that no oversight
findings or recommendations have been submitted to this
Committee by the Committee on Government Reform and Oversight
with respect to the provisions contained in this bill.

C. Constitutional Authority Statement

With respect to clause 2(l)(4) of rule XI of the Rules of
the House of Representatives, relating to Constitutional
Authority, the Committee states that the Committee's action in
reporting the bill is derived from Article I of the
Constitution, Section 8 (``The Congress shall have power to lay
and collect taxes, duties, imposts and excises, to pay the
debts and to provide for * * * the general Welfare of the
United States * * *'').

IV. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italics, existing law in which no change is proposed
is shown in roman):

SECTION 301 OF THE CUSTOMS PROCEDURAL REFORM AND SIMPLIFICATION ACT OF
1978

TITLE III--CUSTOMS SERVICE APPROPRIATIONS AUTHORIZATION

Sec. 301. (a)(1) For the fiscal year beginning October 1,
1979, and each fiscal year thereafter, there are authorized to
be appropriated to the Department of the Treasury for the
United States Customs Service only such sums as may hereafter
be authorized by law.
* * * * * * *
(3) By no later than the date on which the President submits
to the Congress the budget of the United States Government for
a fiscal year, the Commissioner of Customs shall submit to the
Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate the projected amount of
funds for the succeeding fiscal year that will be necessary for
the operations of the Customs Service as provided for in
subsection (b).
[(b) Authorization of Appropriations.--
[(1) For noncommercial operations.--There are
authorized to be appropriated for the salaries and
expenses of the Customs Service that are incurred in
noncommercial operations not to exceed the following:
[(A) $516,217,000 for fiscal year 1991.
[(B) $542,091,000 for fiscal year 1992.
[(2) For commercial operations.--(A) There are
authorized to be appropriated for the salaries and
expenses of the Customs Service that are incurred in
commercial operations not less than the following:
[(i) $672,021,000 for fiscal year 1991.
[(ii) $705,793,000 for fiscal year 1992.
[(B) The monies authorized to be appropriated under
subparagraph (A) for any fiscal year, except for such
sums as may be necessary for the salaries and expenses
of the Customs Service that are incurred in connection
with the processing of merchandise that is exempt from
the fees imposed under section 13031(a) (9) and (10) of
the Consolidated Omnibus Budget Reconciliation Act of
1985, shall be appropriated from the Customs User Fee
Account.
[(3) For air interdiction.--There are authorized to
be appropriated for the operation (including salaries
and expenses) and maintenance of the air interdiction
program of the Customs Service not to exceed the
following:
[(A) $143,047,000 for fiscal year 1991.
[(B) $150,199,000 for fiscal year 1992.]
(b) Authorization of Appropriations.--
(1) For noncommercial operations.--There are
authorized to be appropriated for the salaries and
expenses of the Customs Service that are incurred in
noncommercial operations not to exceed the following:
(A) $668,397,000 for fiscal year 1998.
(B) $684,018,000 for fiscal year 1999.
(2) For commercial operations.--(A) There are
authorized to be appropriated for the salaries and
expenses of the Customs Service that are incurred in
commercial operations not less than the following:
(i) $901,441,000 for fiscal year 1998.
(ii) $930,447,000 for fiscal year 1999.
(B) The monies authorized to be appropriated under
subparagraph (A) for any fiscal year, except for such
sums as may be necessary for the salaries and expenses
of the Customs Service that are incurred in connection
with the processing of merchandise that is exempt from
the fees imposed under section 13031(a) (9) and (10) of
the Consolidated Omnibus Budget Reconciliation Act of
1985, shall be appropriated from the Customs User Fee
Account.
(3) For air and marine interdiction.--There are authorized to
be appropriated for the operation (including salaries and
expenses) and maintenance of the air and marine interdiction
programs of the Customs Service not to exceed the following:
(A) $95,258,000 for fiscal year 1998.
(B) $98,226,000 for fiscal year 1999.
----------

SECTION 141 OF THE TRADE ACT OF 1974

SEC. 141. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

(a) * * *
* * * * * * *
[(g)(1)(A) There are authorized to be appropriated to the
Office for the purposes of carrying out its functions not to
exceed the following:
[(i) $23,250,000 for fiscal year 1991.
[(ii) $21,077,000 for fiscal year 1992.
[(B) Of the amounts authorized to be appropriated under
subparagraph (A) for any fiscal year--
[(i) not to exceed $98,000 may be used for
entertainment and representation expenses of the
Office;
[(ii) not to exceed $2,050,000 may be used to pay the
United States share of the expenses of binational
panels and extraordinary challenge committees convened
pursuant to chapter 19 of the United States-Canada
Free-Trade Agreement; and
[(iii) not to exceed $1,000,000 shall remain
available until expended.]
(g)(1)(A) There are authorized to be appropriated to the
Office for the purposes of carrying out its functions not to
exceed the following:
(i) $22,092,000 for fiscal year 1998.
(ii) $24,300,000 for fiscal year 1999.
(B) Of the amounts authorized to be appropriated under
subparagraph (A) for any fiscal year--
(i) not to exceed $98,000 may be used for
entertainment and representation expenses of the
Office; and
(ii) not to exceed $2,500,000 shall remain available
until expended.
* * * * * * *
(3) By no later than the date on which the President submits
to the Congress the budget of the United States Government for
a fiscal year, the United States Trade Representative shall
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate the
projected amount of funds for the succeeding fiscal year that
will be necessary for the Office to carry out its functions.
----------

SECTION 330 OF THE TARIFF ACT OF 1930

SEC. 330. ORGANIZATION OF THE COMMISSION.

(a) * * *
* * * * * * *
(e) Authorization of Appropriations.--(1) For the fiscal year
beginning October 1, 1976, and each fiscal year thereafter,
there are authorized to be appropriated to the Commission only
such sums as may hereafter be provided by law.
[(2)(A) There are authorized to be appropriated to the
Commission for necessary expenses (including the rental of
conference rooms in the District of Columbia and elsewhere) not
to exceed the following:
[(i) $41,170,000 for fiscal year 1991.
[(ii) $44,052,000 for fiscal year 1992.
[(B) Not to exceed $2,500 of the amount authorized to be
appropriated for any fiscal year under subparagraph (A) may be
used, subject to the approval of the Chairman of the
Commission, for reception and entertainment expenses.
[(C) No part of any sum that is appropriated under the
authority of subparagraph (A) may be used by the Commission in
the making of any special study, investigation, or report that
is requested by any agency of the executive branch unless that
agency reimburses the Commission for the cost thereof.]
(2)(A) There are authorized to be appropriated to the
Commission for necessary expenses (including the rental of
conference rooms in the District of Columbia and elsewhere) not
to exceed the following:
(i) $41,980,000 for fiscal year 1998.
(ii) $46,125,400 for fiscal year 1999.
(B) Not to exceed $2,500 of the amount authorized to be
appropriated for any fiscal year under subparagraph (A) may be
used, subject to the approval of the Chairman of the
Commission, for reception and entertainment expenses.
(C) No part of any sum that is appropriated under the
authority of subparagraph (A) may be used by the Commission in
the making of any special study, investigation, or report that
is requested by any agency of the executive branch unless that
agency reimburses the Commission for the cost thereof.
* * * * * * *
(4) By no later than the date on which the President submits
to the Congress the budget of the United States Government for
a fiscal year, the Commission shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate the projected amount of
funds for the succeeding fiscal year that will be necessary for
the Commission to carry out its functions.