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



                                                       Calendar No. 207
105th Congress                                                   Report
                                 SENATE

 1st Session                                                    105-105
_______________________________________________________________________


 
          UNITED STATES-CARIBBEAN BASIN TRADE ENHANCEMENT ACT

                                _______
                                

                October 9, 1997.--Ordered to be printed

_______________________________________________________________________


    Mr. Roth, from the Committee on Finance, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 1278]

      [Including cost estimate of the Congressional Budget Office]

     The Committee on Finance, having considered legislation to 
expand the trade preferences available to beneficiary countries 
designated under the Caribbean Basin Economic Recovery Act, 
reports favorably thereon and refers the bill to the full 
Senate with a recommendation that the bill do pass.

                              I. Background

     Congress enacted the Caribbean Basin Economic Recovery Act 
(``CBERA'') in 1983 to respond to an economic crisis in Central 
America and the Caribbean. The principal U.S. response to that 
crisis under CBERA was a broad grant of unilateral tariff 
preferences to qualifying beneficiary countries.
     In order to qualify, the beneficiary country had to 
request the opportunity to participate. The President then 
determined whether the country was eligible based on a variety 
of factors, including, among others, the country's commitment 
to afford the United States reciprocal market access, the 
country's participation (at the time) in the General Agreement 
on Tariffs and Trade (GATT), its willingness to accept subsidy 
disciplines, the extent to which the country afforded adequate 
intellectual property protection, whether or not the country 
had taken steps to afford internationally recognized worker 
rights, and the extent to which the country's economic policies 
would contribute to the goals of the Caribbean Basin 
Initiative, or ``CBI'' as it is widely known.
     The original grant of preferences was limited to a period 
of 12 years. It covered virtually all trade with the CBI 
countries with the exception of textiles and apparel, canned 
tuna, petroleum and petroleum products, and certain watches and 
watch parts, handbags, luggage, flat goods such as wallets, 
change purses and key and eyeglass cases, work gloves and 
leather wearing apparel.
     The current CBI beneficiaries include Antigua and Barbuda, 
Aruba, Bahamas, Barbados, Belize, Costa Rica, Dominica, 
Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, 
Haiti, Honduras, Jamaica, Montserrat, Netherlands Antilles, 
Nicaragua, Panama, Saint Kitts and Nevis, Saint Lucia, Saint 
Vincent and the Grenadines, Trinidad and Tobago, and the 
British Virgin Islands.
     In 1990, Congress passed the Caribbean Basin Economic 
Recovery Expansion Act of 1990, the so-called ``CBI II.'' That 
Act made the unilateral grant of preferences permanent. It also 
expanded the tariff preferences. CBI II permitted the President 
to proclaim a tariff reduction of 20 percent (but not more than 
2.5 percent ad valorem on any article) in tariffs applicable to 
a subset of the previously excluded products--handbags, 
luggage, flat goods, work gloves, and leather wearing apparel. 
CBI II also allowed for duty-free treatment on articles, other 
than textiles and petroleum-based products, if made from U.S. 
fabricated components.
     In 1993, the United States, Canada, and Mexico signed the 
North American Free Trade Agreement (NAFTA). Among the 
commitments made by the United States to Mexico were the sharp 
reduction in duties and quantitative limits applicable to 
products ineligible for CBI treatment, including textiles and 
apparel. The Committee's bill is intended to afford CBI 
beneficiaries treatment akin to that afforded Mexican products 
in order to avoid undermining investment in the Caribbean Basin 
based on preferences previously available under the CBI.
     Like the CBI II, enacted in 1990, the Committee's bill 
would expand the existing CBI by providing for additional 
tariff preferences on a number of products not previously 
covered by the program. Those benefits, however, are 
conditioned on the eligible beneficiary countries' trade 
policies, their participation and cooperation in the Free Trade 
Area of the Americas (FTAA) and other trade initiatives, as 
well as certain non-trade factors provided for in the bill.

                  II. General Description of the Bill

     What follows is a section-by-section description of the 
bill.
 Section 1: Short Title
     Section 1 provides that, if enacted, the measure would be 
cited as the ``United States-Caribbean Basin Trade Enhancement 
Act.''
 Section 2: Findings and Policy
     The findings contained in section 2 of the Chairman's 
proposal set out the underlying rationale for expansion of the 
CBI program. The over-arching purpose of the bill is to provide 
opportunities that will enhance the beneficiary countries' 
economic development and integration into the international 
trading system, while providing expanded export opportunities 
for U.S. goods as a result of the increased trade and economic 
growth that the enhanced CBI program is designed to foster. The 
findings underscore that point, as well as emphasize the United 
States' commitment to encouraging the development of strong 
democratic governments and revitalized economies throughout the 
region.
     The policy provisions of section 2 reflect the policy of 
the United States to encourage CBI beneficiaries to become a 
party to the FTAA or a comparable trade agreement at the 
earliest possible date. The provisions make the preferences 
afforded under the Committee's bill expressly contingent on a 
CBI beneficiary country's willingness to join the United States 
in those initiatives.
 Section 3: Definitions
     Section 3 provides certain definitions applicable to the 
provisions of the bill, including definitions of ``beneficiary 
country,'' ``CBTEA,'' ``NAFTA,'' ``NAFTA country,'' ``WTO,'' 
and ``WTO member.''
 Section 4: Temporary Provisions to Provide Additional Trade Benefits 
        to Certain Beneficiary Countries
     The Committee's bill would amend subsection 213(b) of the 
CBERA to provide a tariff preference to imports from the 
Caribbean Basin of products previously excluded from the CBI, 
including certain textile and apparel products, footwear, 
canned tuna, petroleum and derivatives, watches and watch 
parts. The bill would establish a ``transition period'' of 
three years (from January 1, 1998 through December 31, 2000) 
during which additional tariff preferences could be made 
available on certain of those items.
     Eligibility for the program is left in the discretion of 
the President, but the proposal would provide very specific 
guidance as to the criteria the President should apply in 
making that determination. The starting point under the 
Committee's bill is compliance with the eligibility criteria 
set out in the original CBERA. The bill would add certain 
trade-related criteria, such as the extent to which the 
beneficiary country fully implements the various Uruguay Round 
agreements, whether the beneficiary country affords adequate 
intellectual property protection and protection to U.S. 
investors, and the extent to which the country applies 
internationally accepted rules on government procurement and 
customs valuation.
     The proposal also adds other criteria that reflect 
important U.S. initiatives. They include, among others, the 
extent to which the country has become a party to the Inter-
American Convention Against Corruption, is or becomes a party 
to a convention regarding the extradition of its nationals, 
satisfies the criteria for counter-narcotics certification 
under section 490 of the Foreign Assistance Act of 1961, and 
provides internationally recognized worker rights.
     The Committee's bill would impose two reporting 
requirements. The first obliges the President to report at the 
outset of the program and at the end of the three-year 
transition period on the performance of each beneficiary 
country in meeting the applicable criteria. Before submitting 
such report, the United States Trade Representative must seek 
public comment. The second reporting requirement obliges the 
United States International Trade Commission to assess the 
impact of the various CBI programs on U.S. industries and 
consumers.
     The preferences offered under the Committee's bill are 
divided between those made available for imports of certain 
textile and apparel products and those available for all other 
products covered by the legislation.

                                Textiles

     With respect to textiles, the Committee's bill adopts an 
approach consistent with that of the CBI II--one that will both 
provide expanded benefits to the CBI beneficiaries' apparel 
industry while affording new opportunities for U.S. textile, 
yarn, and thread producers. The Committee's bill would extend 
immediate duty-free and quota-free treatment to the following 
products--
   apparel articles assembled in an eligible CBI 
        beneficiary country from U.S. fabrics wholly formed 
        from U.S. yarns and cut in the United States that would 
        enter the United States under Harmonized Tariff 
        Schedule (HTS) item number 9802.00.80 (a provision that 
        otherwise allows an importer to pay duty solely on the 
        value-added abroad when U.S. components are shipped 
        abroad for assembly);
   apparel articles entered under chapters 61 and 62 of 
        the HTS where they would have qualified for HTS 
        9802.00.80 treatment but for the fact that the articles 
        were subjected to certain types of washing and 
        finishing;
   apparel articles cut and assembled in the eligible 
        CBI country from U.S. fabric formed from U.S. yarn and 
        sewn in the Caribbean with U.S. thread; and
   handloomed, handmade and folklore articles 
        originating in the CBI beneficiary country.
     With respect to the fourth category, the bill provides 
that the President, in consultation with the relevant 
beneficiary country, will determine which, if any, particular 
textile and apparel articles are to be treated as handloomed, 
handmade or folklore goods eligible for trade preferences under 
this program. The Committee expects that only genuinely 
handcrafted articles, normally produced in limited quantities, 
will be designated as eligible; this provision is not intended 
to benefit large-scale, industrial production of textile or 
apparel articles.
     The Committee's bill would allow for the snapback of the 
tariff preferences provided under this bill in the event of 
surges in imports that could cause serious damage to the U.S. 
industry producing a like product in the United States. To 
ensure that the preferences made available under the 
Committee's bill do not lead to the transshipment of textile 
and apparel products from other countries where the goods would 
be subject to U.S. quotas, the bill includes two provisions 
penalizing such actions. First, the bill would penalize 
exporters found, on the basis of sufficient evidence, to have 
engaged in transshipment--all benefits under the program would 
be denied for a period of two years. Second, any country that 
was found, on the basis of sufficient evidence, to have failed 
to take action to prevent transshipment after a specific 
request for assistance in that regard from the President would 
have its exports reduced by three times the quantities found to 
have been transshipped. The Committee intends the ``sufficient 
evidence'' standard used here to be the same as that applied 
under Article 5:4 of the Agreement on Textiles and Clothing 
administered by the World Trade Organization (WTO).

                             Other Products

     On all other products covered by the Committee's bill 
(footwear, canned tuna, petroleum and derivatives, and watches 
and watch parts, and certain leather goods), the program would 
provide an immediate reduction in tariffs equal to 50 percent 
of the preference Mexican products enjoy under NAFTA relative 
to imports of the same articles from CBI beneficiaries. In 
other words, the applicable duty paid by importers on such 
goods would be equal to the duty applicable to the same good if 
entered from Mexico, plus one-half of the difference between 
the duty rate afforded Mexico on that product and the duty rate 
that would otherwise apply to the product if imported from the 
CBI beneficiary country but for the enactment of this bill. The 
Committee's bill allows for additional reductions over the 
duration of the program if the President determines that 
eligible CBI beneficiary countries are making progress toward 
fulfilling the criteria set out in the eligibility criteria set 
out in the bill.
     In order for their products to qualify for the preferences 
afforded under the Committee's bill, whether applied to 
textiles and apparel or other products, the beneficiary country 
must comply with customs procedures equivalent to those 
required under the NAFTA.
 Section 5: Adequate and Effective Protection for Intellectual Property 
        Rights
     Section 5 of the Committee's bill clarifies that, for 
purposes of assessing whether a CBI beneficiary is offering 
adequate intellectual property protection, compliance with the 
WTO Agreement on Trade-Related Aspects of Intellectual Property 
is not determinative.
 Section 6: Fees for Certain Customs Services
     Section 13031(a) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (COBRA) establishes a $5 fee on 
passengers arriving in the United States from abroad on 
commercial vessels or aircraft. COBRA section 13031(b), as 
initially enacted, provided that passengers arriving from 
Mexico, Canada, Caribbean nations and U.S. territories (other 
than Puerto Rico) were exempt from the fee. Section 521 of the 
North American Free Trade Agreement Implementation Act 
temporarily increased the fee to $6.50 and applied it as well 
to passengers previously exempt from the fee. These 
modifications terminated on September 30, 1997. Section 9 
provides that the current fee (which reverted to $5 on October 
1, 1997) will apply to passengers arriving from Mexico, Canada, 
the Caribbean and the territories through March 31, 2000. The 
revenue thus generated is sufficient to offset the estimated 
reduction in revenue attributable to the reduced duties the 
Treasury will collect as a result of the preferences afforded 
by the Committee's bill.
     The Committee notes that the amendments to COBRA section 
13031 by section 38 of the Miscellaneous Trade and Technical 
Corrections Act of 1996, Pub. L. No. 104-295, 110 Stat. 3514, 
3539, continue to apply. Specifically, these amendments 
provided that the Customs Service may collect passenger 
processing fees only one time for each passenger aboard a 
commercial vessel in the course of a single voyage involving 
two or more U.S. ports.

                        IV. Congressional Action

     On September 17, 1997, the Committee held a hearing on the 
President's proposal for enhanced trade benefits for CBI 
beneficiary countries, which was transmitted to the Congress on 
June 17, 1997. On October 1, 1997, the Committee considered and 
approved an original bill proposed by Mr. Roth.

                        V. Vote of the Committee

     In compliance with section 133 of the Legislative 
Reorganization Act of 1946, the Committee states that the 
legislation was ordered favorably reported by voice vote on 
October 1, 1997.

                          VI. Budgetary Impact

     In compliance with sections 308 and 403 of the 
Congressional Budget Act of 1974, and paragraph 11(a) of Rule 
XXVI of the Standing Rules of the Senate, the following letter 
has been received from the Congressional Budget Office on the 
budgetary impact of the bill:
                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, October 9, 1997
Hon. William V. Roth, Jr.,
Chairman, Committee on Finance, U.S. Senate,
Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the United States-
Caribbean Basin Trade Enhancement Act, as ordered reported by 
the Senate Committee Finance on October 1, 1997.
            Sincerely,
                                 June E. O'Neill, Director.

                                SUMMARY

    The Congressional Budget Office has reviewed the United 
States-Caribbean Basin Trade Enhancement Act, as ordered 
reported on October 1, 1997, by the Senate Committee on 
Finance. This bill offers temporary NAFTA-parity benefits to 
Caribbean Basin countries in order to enhance trade between the 
United States and this region. The bill would also extend a 
customs user fee established by the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (COBRA). CBO estimates that the bill 
would decrease receipts by $80 million in fiscal year 1998 and 
by $362 million over the l998-2002 period, and would reduce 
outlays by $86 million and by $371 million over those years. 
Because enacting the bill would affect direct spending and 
receipts, pay-as-you-go procedures would apply.
    The bill contains no new private-sector or 
intergovernmental mandates as defined in the Unfunded Mandates 
Reform Act of 1995 (UMRA), and would not impose any costs on 
state, local, or tribal governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of the bill is shown in the 
following table.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                       1998      1999      2000      2001      2002    1998-2002
----------------------------------------------------------------------------------------------------------------
                                                     OUTLAYS                                                    
                                                                                                                
Extension of COBRA Customs User Fee................       -86      -154      -131         0         0       -371
                                                                                                                
                                                    RECEIPTS                                                    
                                                                                                                
CBI NAFTA Parity...................................       -80      -118      -132        33        0        -362
----------------------------------------------------------------------------------------------------------------

                           BASIS OF ESTIMATE

Revenues

    Under current law, the United States offers duty-free 
treatment to products of 24 countries in the region through the 
Caribbean Basin Initiative (CBI)--a preferential trade program 
that extends duty-free treatment to a wide range of products 
imported from beneficiary countries. The CBI excludes the 
following products from such treatment: textile and apparel 
articles, luggage and handbags, certain leather goods, 
footwear, tuna, petroleum, and watches and watch parts.
    This bill would provide tariff quota treatment equivalent 
to that accorded to products under the North American Free 
Trade Agreement (NAFTA) to the excluded products of CBI 
beneficiaries. NAFTA parity would begin January 1, 1998, and 
would terminate on December 31, 2000. The bill would encourage 
the United States Trade Representative to seek the accession of 
these beneficiary counties to NAFTA or a comparable free trade 
agreement at the earliest possible date, with the goal of 
achieving full participation by all beneficiary countries by no 
later than January 1, 2005.
    The estimate of revenue loss is based on 1996 trade data. 
Tariff reductions follow the staged rate reductions that are 
stipulated in NAFTA, under which the President proclaims a rate 
of duty that is equal to the lesser of the current duty at the 
time of importation or the rate of duty that applies to a like 
article of Mexico under NAFTA. Further reductions may be 
proclaimed if the President determines that the performance of 
the country is satisfactory under specific criteria. CBO's 
estimate assumes a three-year phasein for these NAFTA-parity 
reductions. This bill would also extend immediate duty-free and 
quota-free treatment to apparel articles assembled in an 
eligible CBI beneficiary country from U.S. fabric, articles 
subjected to certain types of washing and finishing, articles 
cut and assembled in CBI countries from U.S. fabric sewn with 
Caribbean thread, and handloomed, handmade, and folklore 
articles originating in CBI beneficiary countries. Textile and 
apparel tariff reductions account for about 97 percent of the 
revenue loss; petroleum and footwear tariff reductions account 
for the remainder of the decrease.

Outlays

    Section 13031 of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (COBRA) established a schedule of 
flat fees for processing conveyances and passengers entering 
the United States. This bill would direct the Customs Service 
to collect a passenger processing fee of $5 from persons 
arriving by commercial vessel or aircraft from Mexico, Canada, 
and certain other areas. This fee would be collected through 
March 31, 2000. CBO estimates that this provision would result 
in additional offsetting receipts of about $86 million in 
fiscal year 1998 and $371 million over the 1998-2002 period.
    The Reciprocal Trade Agreements Act of 1997, as ordered 
reported by the Senate Committee on Finance on October 1, 1997, 
would extend the same fee through August 31, 1998.

                      PAY-AS-YOU-GO CONSIDERATIONS

    Section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 sets up pay-as-you-go procedures for 
legislation affecting direct spending or receipts. The 
projected changes in direct spending through 2007 are shown in 
the following table. For purposes of enforcing pay-as-you-go 
procedures, however, only the effects in the budget year and 
the succeeding four years are counted.

                                                              PAY-AS-YOU-GO CONSIDERATIONS                                                              
                                                        [By fiscal year, in millions of dollars]                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                    1998       1999       2000       2001       2002       2003       2004       2005       2006       2007    1998-2007
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in Outlays.............        -86       -154       -131          0          0          0          0          0          0          0       -371
Changes in Receipts............        -80       -118       -132        -33          0          0          0          0          0          0       -362
--------------------------------------------------------------------------------------------------------------------------------------------------------

              intergovernmental and private-sector impact

    The bill contains no new private-sector or 
intergovernmental mandates as defined in UMRA and would not 
impose any costs on state, tribal, or local governments.

                         VII. Regulatory Impact

     In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
bill will not significantly regulate any individuals or 
businesses, will not impact on the personal privacy of 
individuals, and will result in no significant additional 
paperwork.
         VIII.  Additional Views of Senator Frank H. Murkowski

     I am compelled to file additional views regarding the 
funding provisions of the United States-Caribbean Basin Trade 
Enhancement Act. While I support expansion of the Caribbean 
Basin Economic Recovery Act, I believe that the way the 
Committee funded this initiative is inappropriate. Under 
section 6 of this bill, passengers arriving from Mexico, 
Canada, Caribbean nations and U.S. territories aboard 
commercial vessels or aircraft are once again being forced to 
pick up the tab for this program unrelated to customs or any 
other service associated with their travel. Furthermore, these 
Americans (of the four million cruise passengers last year, 
over 90 percent were Americans) are being asked to pay again 
for customs services for which they already pay, both directly 
and indirectly, through income taxes, and other customs fees.
     I believe that the Committee should have turned to 
spending cuts, not new user fees or taxes to pay for 
legislation to expand a trade preference program.
     In 1985, Congress specifically did not impose a fee on 
passengers arriving from Mexico, Canada, Caribbean nations and 
U.S. territories aboard commercial vessels or aircraft as part 
of Section 13031(b) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (COBRA). To offset the costs of the 
North American Free Trade Agreement (NAFTA), however, Section 
521 of the NAFTA Implementation Act imposed a fee on these 
previously exempt passengers. This fee was intended to be 
temporary, and, in fact, did terminate on September 30, 1997. 
But the very next day, October 1, 1997, the Committee reimposed 
the fee to pay for changes to the Caribbean Basin Initiative.
     I find it especially disheartening that the Committee 
would impose a burden on an industry that supports 500,000 U.S. 
jobs, and already pays over $8 billion in the form of 64 
different taxes and fees to 12 different government agencies.
     I do note my satisfaction that the Committee makes clear 
that the amendment I offered to COBRA section 13031 by section 
38 of the Miscellaneous Trade and Technical Corrections Act of 
1996 continues to apply. This section directs that the Customs 
Service may collect passenger processing fees only one time for 
each passenger aboard a commercial vessel in the course of a 
single voyage involving two or more U.S. ports. This will 
prevent the unfortunate interpretation by the Customs Service 
that a fee could be extracted, for example, at every Alaskan 
port of call when the vessel simply sailed outside the customs 
territory of the United States on its voyage, without stopping 
at a foreign port.
                       IX. Changes in Existing Law

     In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, 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):

                 Caribbean Basin Economic Recovery Act

                    Subtitle A--Duty-Free Treatment

SEC. 211. AUTHORITY TO GRANT DUTY-FREE TREATMENT.

    The President may proclaim duty-free treatment (or other 
preferential treatment) for all eligible articles from any 
beneficiary country in accordance with the provisions of this 
title.

SEC. 212. BENEFICIARY COUNTRY.

    (a)(1) For purposes of this title--
          (A) The term ``beneficiary country'' means any 
        country listed in subsection (b) with respect to which 
        there is in effect a proclamation by the President 
        designating such country as a beneficiary country for 
        purposes of this title. Before the President designates 
        any country as a beneficiary country for purposes of 
        this title, he shall notify the House of 
        Representatives and the Senate of his intention to make 
        such designation, together with the considerations 
        entering into such decision.
          (B) The term ``entered'' means entered, or withdrawn 
        from warehouse for consumption, in the customs 
        territory of the United States.
          (C) The term ``HTS'' means Harmonized Tariff Schedule 
        of the United States (19 U.S.C. 1202).
          (D) The term ``NAFTA'' means the North American Free 
        Trade Agreement entered into between the United States, 
        Mexico, and Canada on December 17, 1992.
          (E) The terms ``WTO'' and ``WTO member'' have the 
        meanings given those terms in section 2 of the Uruguay 
        Round Agreements Act (19 U.S.C. 3501).
          * * * * * * *
    (c) In determining whether to designate any country a 
beneficiary country under this title, the President shall take 
into account--
          * * * * * * *
          (9) the extent to which such country provides under 
        its law adequate and effective means for foreign 
        nationals to secure, exercise, and enforce exclusive 
        rights in intellectual property, including patent, 
        trademark, and copyright rights;
          * * * * * * *
Notwithstanding any other provision of law, the President may 
determine that a country is not providing adequate and 
effective protection of intellectual property rights under 
paragraph (9), even if the country is in compliance with the 
country's obligations under the Agreement on Trade-Related 
Aspects of Intellectual Property Rights described in section 
101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 
3511(d)(15)).
          * * * * * * *
    (e)(1)(A) The President may, after the requirements of 
subsection (a)(2) and paragraph (2) have been met--
          [(A)](i) withdraw or suspend the designation of any 
        country as a beneficiary country, or
          [(B)](ii) withdraw, suspend, or limit the application 
        of duty-free treatment under this subtitle to any 
        article of any country,
if, after such designation, the President determines that as a 
result of changed circumstances such country [would be barred 
from designation as a beneficiary country under subsection 
(b).] no longer satisfies one or more of the conditions for 
designation as a beneficiary country set forth in subsection 
(b) or such country fails adequately to meet one or more of the 
criteria set forth in subsection (c).
          (B) The President may, after the requirements of 
        subsection (a)(2) and paragraph (2) have been met--
                  (i) withdraw or suspend the designation of 
                any country as a CBTEA beneficiary country, or
                  (ii) withdraw, suspend, or limit the 
                application of preferential treatment under 
                section 213(b) (2) and (3) to any article of 
                any country, if, after such designation, the 
                President determines that as a result of 
                changed circumstances, the performance of such 
                country is not satisfactory under the criteria 
                set forth in section 213(b)(5)(B).
    (2)(A) The President shall publish in the Federal Register 
notice of the action the President proposes to take under 
paragraph (1) at least 30 days prior to taking such action.
    (B) The United States Trade Representative shall, within 
the 30-day period beginning on the date on which the President 
publishes under subparagraph (A) notice of proposed action--
          (i) accept written comments from the public regarding 
        such proposed action,
          (ii) hold a public hearing on such proposed action, 
        and
          (iii) publish in the Federal Register--
                  (I) notice of the time and place of such 
                hearing prior to the hearing, and
                  (II) the time and place at which such written 
                comments will be accepted.
    (3) If preferential treatment under section 213(b) (2) and 
(3) is withdrawn, suspended, or limited with respect to a CBTEA 
beneficiary country, such country shall not be deemed to be a 
``party'' for the purposes of applying section 213(b)(5)(C) to 
imports of articles for which preferential treatment has been 
withdrawn, suspended, or limited with respect to such country.
          * * * * * * *
    [(f) On or before October 1, 1993, and the close of each 3-
year period thereafter, the President shall submit to the 
Congress a complete report regarding the operation of this 
title, including the results of a general review of beneficiary 
countries based on the considerations described in subsections 
(b) and (c).]
  (f) Reporting Requirements.--
          (1) In general.--Not later than December 31, 1997, 
        and at the end of each 3-year period thereafter, the 
        President shall submit to Congress a report regarding 
        the operation of this title, including--
                  (A) with respect to subsections (b) and (c), 
                the results of a general review of beneficiary 
                countries based on the considerations described 
                in such subsections; and
                  (B) the performance of each beneficiary 
                country or CBTEA beneficiary country, as the 
                case may be, under the criteria set forth in 
                section 213(b)(5)(B)(ii).
          (2) Public comment.--Before submitting the report 
        described in paragraph (1), the United States Trade 
        Representative shall publish a notice in the Federal 
        Register requesting public comments on whether 
        beneficiary countries are meeting the criteria listed 
        in section 213(b)(5)(B)(i), and on the performance of 
        each beneficiary country or CBTEA beneficiary country, 
        as the case may be, with respect to the criteria listed 
        in section 213(b)(5)(B)(ii).

SEC. 213. ELIGIBLE ARTICLES.

    (a)(1) Unless otherwise excluded from eligibility by this 
title, and subject to section 423 of the Tax Reform Act of 
1986, and except as provided in subsection (b) (2) and (3), the 
duty-free treatment provided under this title shall apply to 
any article which is the growth, product, or manufacture of a 
beneficiary country if--
          (A) that article is imported directly from a 
        beneficiary country into the customs territory of the 
        United States; and
          (B) the sum of (i) the cost or value of the materials 
        produced in a beneficiary country or two or more 
        beneficiary countries, plus (ii) the direct costs of 
        processing operations performed in a beneficiary 
        country or countries is not less than 35 per centum 
        of.the appraised value of such article at the time it 
        is entered.
          * * * * * * *
    [(b) The duty-free treatment provided under this title 
shall not apply to--
    [(1) textile and apparel articles which are subject to 
textile agreements;
    [(2) footwear not designated at the time of the effective 
date of this title as eligible articles for the purpose of the 
generalized system of preferences under title V of the Trade 
Act of 1974;
    [(3) tuna, prepared or preserved in any manner, in airtight 
containers;
    [(4) petroleum, or any product derived from petroleum, 
provided for in headings 2709 and 2710 of the Harmonized Tariff 
Schedule of the United States;
    [(5) watches and watch parts (including cases, bracelets 
and straps), of whatever type including, but not limited to, 
mechanical, quartz digital or quartz analog, if such watches or 
watch parts contain any material which is the product of any 
country with respect to which HTS column 2 rates of duty apply; 
or
    [(6) articles to which reduced rates of duty apply under 
subsection (h).]
  (b) Import-Sensitive Articles.--
          (1) In general.--Subject to paragraphs (2) through 
        (5), the duty-free treatment provided under this title 
        does not apply to--
                  (A) textile and apparel articles which were 
                not eligible articles for purposes of this 
                title on January 1, 1994, as this title was in 
                effect on that date;
                  (B) footwear not designated at the time of 
                the effective date of this title as eligible 
                articles for the purpose of the generalized 
                system of preferences under title V of the 
                Trade Act of 1974;
                  (C) tuna, prepared or preserved in any 
                manner, in airtight containers;
                  (D) petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 
                2710 of the HTS;
                  (E) watches and watch parts (including cases, 
                bracelets, and straps), of whatever type 
                including, but not limited to, mechanical, 
                quartz digital or quartz analog, if such 
                watches or watch parts contain any material 
                which is the product of any country with 
                respect to which HTS column 2 rates of duty 
                apply; or
                  (F) articles to which reduced rates of duty 
                apply under subsection (h).
          (2) Transition period treatment of certain textile 
        and apparel articles.--
                  (A) Products covered.--During the transition 
                period, the preferential treatment described in 
                subparagraph (B) shall apply to the following 
                products:
                          (i) Apparel articles assembled in a 
                        cbtea beneficiary country.--Apparel 
                        articles assembled in a CBTEA 
                        beneficiary country from fabrics wholly 
                        formed and cut in the United States, 
                        from yarns wholly formed in the United 
                        States that are--
                                  (I) entered under subheading 
                                9802.00.80 of the HTS; or
                                  (II) entered under chapter 61 
                                or 62 of the HTS, if, after 
                                such assembly, the articles 
                                would have qualified for entry 
                                under subheading 9802.00.80 of 
                                the HTS but for the fact that 
                                the articles were subjected to 
                                stone-washing, enzyme-washing, 
                                acid washing, perma-pressing, 
                                oven-baking, bleaching, 
                                garment-dyeing, or other 
                                similar processes.
                          (ii) Apparel articles cut and 
                        assembled in a cbtea beneficiary 
                        country.--Apparel articles cut in a 
                        CBTEA beneficiary country from fabric 
                        wholly formed in the United States from 
                        yarns wholly formed in the United 
                        States, if such articles are assembled 
                        in such country with thread formed in 
                        the United States.
                          (iii) Handloomed, handmade, and 
                        folklore articles.--A handloomed, 
                        handmade, or folklore article of a 
                        CBTEA beneficiary country identified 
                        under subparagraph (C) that is 
                        certified as such by the competent 
                        authority of such beneficiary country.
                  (B) Preferential treatment.--Except as 
                provided in subparagraph (E), during the 
                transition period, the articles described in 
                subparagraph (A) shall enter the United States 
                free of duty and free of any quantitative 
                limitations.
                  (C) Handloomed, handmade, and folklore 
                articles defined.--For purposes of subparagraph 
                (A)(iii), the President, after consultation 
                with the CBTEA beneficiary country concerned, 
                shall determine which, if any, particular 
                textile and apparel goods of the country shall 
                be treated as being handloomed, handmade, or 
                folklore goods of a kind described in section 
                2.3 (a), (b), or (c) or Appendix 3.1.B.11 of 
                the Annex.
                  (D) Penalties for transshipments.--
                          (i) Penalties for exporters.--If the 
                        President determines, based on 
                        sufficient evidence, that an exporter 
                        has engaged in transshipment with 
                        respect to textile or apparel products 
                        from a CBTEA beneficiary country, then 
                        the President shall deny all benefits 
                        under this title to such exporter, and 
                        any successor of such exporter, for a 
                        period of 2 years.
                          (ii) Penalties for countries.--
                        Whenever the President finds, based on 
                        sufficient evidence, that transshipment 
                        has occurred, the President shall 
                        request that the CBTEA beneficiary 
                        country or countries through whose 
                        territory the transshipment has 
                        occurred take all necessary and 
                        appropriate actions to prevent such 
                        transshipment. If the President 
                        determines that a country is not taking 
                        such actions, the President shall 
                        reduce the quantities of textile and 
                        apparel articles that may be imported 
                        into the United States from such 
                        country by the quantity of the 
                        transshipped articles multiplied by 3.
                          (iii) Transshipment described.--
                        Transshipment within the meaning of 
                        this subparagraph has occurred when 
                        preferential treatment for a textile or 
                        apparel article under subparagraph (B) 
                        has been claimed on the basis of 
                        material false information concerning 
                        the country of origin, manufacture, 
                        processing, or assembly of the article 
                        or any of its components. For purposes 
                        of this clause, false information is 
                        material if disclosure of the true 
                        information would mean or would have 
                        meant that the article is or was 
                        ineligible for preferential treatment 
                        under subparagraph (B).
                  (E) Bilateral emergency actions.--
                          (i) In general.--The President may 
                        take bilateral emergency tariff actions 
                        of a kind described in section 4 of the 
                        Annex with respect to any apparel 
                        article imported from a CBTEA 
                        beneficiary country if the application 
                        of tariff treatment under subparagraph 
                        (B) to such article results in 
                        conditions that would be cause for the 
                        taking of such actions under such 
                        section 4 with respect to a like 
                        article described in the same 8-digit 
                        subheading of the HTS that is imported 
                        from Mexico.
                          (ii) Rules relating to bilateral 
                        emergency action.--For purposes of 
                        applying bilateral emergency action 
                        under this subparagraph--
                                  (I) the requirements of 
                                paragraph (5) of section 4 of 
                                the Annex (relating to 
                                providing compensation) shall 
                                not apply;
                                  (II) the term ``transition 
                                period'' in section 4 of the 
                                Annex shall have the meaning 
                                given that term in paragraph 
                                (5)(D) of this subsection; and
                                  (III) the requirements to 
                                consult specified in section 4 
                                of the Annex shall be treated 
                                as satisfied if the President 
                                requests consultations with the 
                                beneficiary country in question 
                                and the country does not agree 
                                to consult within the time 
                                period specified under section 
                                4.
          (3) Preferential tariff treatment of certain other 
        articles originating in cbtea beneficiary countries.--
                  (A) In general.--During the transition 
                period, the President shall proclaim a rate of 
                duty, with respect to any article referred to 
                in any of subparagraphs (B) through (F) of 
                paragraph (1) that is a CBTEA originating good, 
                equal to the lesser of--
                          (i) ``x'', or
                          (ii) the amount determined by using 
                        the formula ``.5(x-y)+y''.
                For purposes of the preceding sentence, the 
                terms ``x'' and ``y'' have the meanings given 
                such terms in subparagraph (C).
                  (B) Additional reductions.--
                          (i) In general.--The President may 
                        proclaim further reductions in the rate 
                        of duty for any article described in 
                        subparagraph (A) in accordance with 
                        this subparagraph if the President 
                        determines that the performance of the 
                        country is satisfactory under the 
                        criteria listed in paragraph 
                        (5)(B)(ii).
                          (ii) Rate of duty.--The rate of duty 
                        proclaimed by the President under this 
                        subparagraph shall be no less than the 
                        lesser of--
                                  (I) the rate of duty that 
                                would apply to the article at 
                                the time of importation from 
                                the country but for the 
                                enactment of the CBTEA, or
                                  (II) the rate of duty that 
                                applies to a like article of 
                                Mexico under Annex 302.2 of 
                                NAFTA as implemented pursuant 
                                to United States law.
                  (C) Certain definitions.--For purposes of 
                subparagraph (A), the term ``x'' means the rate 
                of duty described in subparagraph (B)(ii)(I) 
                and the term ``y'' means the rate of duty 
                described in subparagraph (B)(ii)(II).
                  (D) Exception.--Subparagraphs (A) and (B) do 
                not apply to any article accorded duty-free 
                treatment under U.S. Note 2(b) to subchapter II 
                of chapter 98 of the HTS.
                  (E) Relationship to duty reductions under 
                subsection (h).--If at any time during the 
                transition period the rate of duty that would 
                (but for action taken under subparagraph (A) or 
                (B)) apply with respect to any article under 
                subsection (h) is a rate of duty that is lower 
                than the rate of duty resulting from such 
                action, then such lower rate of duty shall be 
                applied.
          (4) Customs procedures.--
                  (A) In general.--
                          (i) Regulations.--Any importer that 
                        claims preferential treatment under 
                        paragraph (2) or (3) shall comply with 
                        customs procedures similar in all 
                        material respects to the requirements 
                        of Article 502(1) of the NAFTA as 
                        implemented pursuant to United States 
                        law, in accordance with regulations 
                        promulgated by the Secretary of the 
                        Treasury.
                          (ii) Determination.--
                                  (I) In general.--In order to 
                                qualify for the preferential 
                                treatment under paragraph (2) 
                                or (3) and for a Certificate of 
                                Origin to be valid with respect 
                                to any article for which such 
                                treatment is claimed, there 
                                shall be in effect a 
                                determination by the President 
                                that each country described in 
                                subclause (II)--
                                          (aa) has implemented 
                                        and follows, or
                                          (bb) is making 
                                        substantial progress 
                                        toward implementing and 
                                        following,
                                procedures and requirements 
                                similar in all material 
                                respects to the relevant 
                                procedures and requirements 
                                under chapter 5 of the NAFTA.
                                  (II) Country described.--A 
                                country is described in this 
                                subclause if it is a CBTEA 
                                beneficiary country--
                                          (aa) from which the 
                                        article is exported, or
                                          (bb) in which 
                                        materials used in the 
                                        production of the 
                                        article originate or in 
                                        which the article or 
                                        such materials undergo 
                                        production that 
                                        contributes to a claim 
                                        that the article is 
                                        eligible for 
                                        preferential treatment.
                  (B) Certificate of origin.--The Certificate 
                of Origin that otherwise would be required 
                pursuant to the provisions of subparagraph (A) 
                shall not be required in the case of an article 
                imported under paragraph (2) or (3) if such 
                Certificate of Origin would not be required 
                under Article 503 of the NAFTA (as implemented 
                pursuant to United States law), if the article 
                were imported from Mexico.
          (5) Definitions and special rules.--For purposes of 
        this subsection--
                  (A) Annex.--The term ``the Annex'' means 
                Annex 300-B of the NAFTA.
                  (B) CBTEA beneficiary country.--
                          (i) In general.--The term ``CBTEA 
                        beneficiary country'' means any 
                        ``beneficiary country'', as defined by 
                        section 212(a)(1)(A) of this title, 
                        which the President determines has 
                        demonstrated a commitment to--
                                  (I) undertake its obligations 
                                under the WTO on or ahead of 
                                schedule;
                                  (II) participate in 
                                negotiations toward the 
                                completion of the FTAA or a 
                                comparable trade agreement; and
                                  (III) undertake other steps 
                                necessary for that country to 
                                become a party to the FTAA or a 
                                comparable trade agreement.
                          (ii) Criteria for determination.--In 
                        making the determination under clause 
                        (i), the President may consider the 
                        criteria in sections 212 (b) and (c) 
                        and other appropriate criteria, 
                        including--
                                  (I) the extent to which the 
                                country follows accepted rules 
                                of international trade provided 
                                for under the agreements listed 
                                in section 101(d) of the 
                                Uruguay Round Agreements Act;
                                  (II) the extent to which the 
                                country provides protection of 
                                intellectual property rights--
                                          (aa) in accordance 
                                        with standards 
                                        established in the 
                                        Agreement on Trade-
                                        Related Aspects of 
                                        Intellectual Property 
                                        Rights described in 
                                        section 101(d)(15) of 
                                        the Uruguay Round 
                                        Agreements Act;
                                          (bb) in accordance 
                                        with standards 
                                        established in chapter 
                                        17 of the NAFTA; and
                                          (cc) by granting the 
                                        holders of copyrights 
                                        the ability to control 
                                        the importation and 
                                        sale of products that 
                                        embody copyrighted 
                                        works, extending the 
                                        period set forth in 
                                        Article 1711(6) of 
                                        NAFTA for protecting 
                                        test data for 
                                        agricultural chemicals 
                                        to 10 years, protecting 
                                        trademarks regardless 
                                        of their subsequent 
                                        designation as 
                                        geographic indications, 
                                        and providing 
                                        enforcement against the 
                                        importation of 
                                        infringing products at 
                                        the border;
                          (III) the extent to which the country 
                        provides protections to investors and 
                        investments of the United States 
                        substantially equivalent to those set 
                        forth in chapter 11 of the NAFTA;
                          (IV) the extent to which the country 
                        provides the United States and other 
                        WTO members nondiscriminatory, 
                        equitable, and reasonable market access 
                        with respect to the products for which 
                        benefits are provided under paragraphs 
                        (2) and (3), and in other relevant 
                        product sectors as determined by the 
                        President;
                          (V) the extent to which the country 
                        provides internationally recognized 
                        worker rights, including--
                                          (aa) the right of 
                                        association,
                                          (bb) the right to 
                                        organize and bargain 
                                        collectively,
                                          (cc) prohibition on 
                                        the use of any form of 
                                        coerced or compulsory 
                                        labor,
                                          (dd) a minimum age 
                                        for the employment of 
                                        children, and
                                          (ee) acceptable 
                                        conditions of work with 
                                        respect to minimum 
                                        wages, hours of work, 
                                        and occupational safety 
                                        and health;
                                  (VI) whether the country has 
                                met the counter-narcotics 
                                certification criteria set 
                                forth in section 490 of the 
                                Foreign Assistance Act of 1961 
                                (22 U.S.C. 2291j) for 
                                eligibility for United States 
                                assistance;
                                  (VII) the extent to which the 
                                country becomes a party to and 
                                implements the Inter-American 
                                Convention Against Corruption, 
                                and becomes party to a 
                                convention regarding the 
                                extradition of its nationals;
                                  (VIII) the extent to which 
                                the country--
                                          (aa) supports the 
                                        multilateral and 
                                        regional objectives of 
                                        the United States with 
                                        respect to government 
                                        procurement, including 
                                        the negotiation of 
                                        government procurement 
                                        provisions as part of 
                                        the FTAA and conclusion 
                                        of a WTO transparency 
                                        agreement as provided 
                                        in the declaration of 
                                        the WTO Ministerial 
                                        Conference held in 
                                        Singapore on December 9 
                                        through 13, 1996, and
                                          (bb) applies 
                                        transparent and 
                                        competitive procedures 
                                        in government 
                                        procurement equivalent 
                                        to those contained in 
                                        the WTO Agreement on 
                                        Government Procurement 
                                        (described in section 
                                        101(d)(17) of the 
                                        Uruguay Round 
                                        Agreements Act);
                                  (IX) the extent to which the 
                                country follows the rules on 
                                customs valuation set forth in 
                                the WTO Agreement on 
                                Implementation of Article VII 
                                of the GATT 1994 (described in 
                                section 101(d)(8) of the 
                                Uruguay Round Agreements Act);
                                  (X) the extent to which the 
                                country affords to products of 
                                the United States which the 
                                President determines to be of 
                                commercial importance to the 
                                United States with respect to 
                                such country, and on a 
                                nondiscriminatory basis to like 
                                products of other WTO members, 
                                tariff treatment that is no 
                                less favorable than the most 
                                favorable tariff treatment 
                                provided by the country to any 
                                other country pursuant to any 
                                free trade agreement to which 
                                such country is a party, other 
                                than the Central American 
                                Common Market or the Caribbean 
                                Community and Common Market.
                  (C) CBTEA originating good.--
                          (i) In general.--The term ``CBTEA 
                        originating good'' means a good that 
                        meets the rules of origin for a good 
                        set forth in chapter 4 of the NAFTA as 
                        implemented pursuant to United States 
                        law.
                          (ii) Application of chapter 4.--In 
                        applying chapter 4 with respect to a 
                        CBTEA beneficiary country for purposes 
                        of this subsection--
                                  (I) no country other than the 
                                United States and a CBTEA 
                                beneficiary country may be 
                                treated as being a party to the 
                                NAFTA;
                                  (II) any reference to trade 
                                between the United States and 
                                Mexico shall be deemed to refer 
                                to trade between the United 
                                States and a CBTEA beneficiary 
                                country;
                                  (III) any reference to a 
                                party shall be deemed to refer 
                                to a CBTEA beneficiary country 
                                or the United States; and
                                  (IV) any reference to parties 
                                shall be deemed to refer to any 
                                combination of CBTEA 
                                beneficiary countries or to the 
                                United States and a CBTEA 
                                beneficiary country (or any 
                                combination thereof).
                  (D) Transition period.--The term ``transition 
                period'' means, with respect to a CBTEA 
                beneficiary country, the period that begins on 
                January 1, 1998, and ends on the earlier of--
                          (i) December 31, 2000, or
                          (ii) the date on which the FTAA or a 
                        comparable trade agreement enters into 
                        force with respect to the United States 
                        and the CBTEA beneficiary country.
                  (E) CBTEA.--The term ``CBTEA'' means the 
                United States-Caribbean Basin Trade Enhancement 
                Act.
                  (F) FTAA.--The term ``FTAA'' means the Free 
                Trade Area of the Americas.
          * * * * * * *

SEC. 215. INTERNATIONAL TRADE COMMISSION REPORTS ON IMPACT OF THIS ACT.

          [(a) The United States International Trade Commission 
        (hereinafter in this section referred to as the 
        ``Commission'') shall prepare, and submit to the 
        Congress and to the President, a report regarding the 
        economic impact of this Act on United States industries 
        and consumers during-
          [(1) the twenty-four-month period beginning with the 
        date of enactment of this Act, and
          [(2) each calendar year occuring thereafter until 
        duty-free treatment under this title is terminated 
        under section 216(b). For purposes of this section, 
        industries in the Commonwealth of Puerto Rico and the 
        insular possessions of the United States shall be 
        considered to be United States industries.]
  (a) Reporting Requirement.--
          (1) In general.--The United States International 
        Trade Commission (in this section referred to as the 
        ``Commission'') shall submit to Congress and the 
        President, biennial reports regarding the economic 
        impact of this title on United States industries and 
        consumers.
          (2) First report.--The first report shall be 
        submitted not later than September 30 of the year 
        following the year in which the United States-Caribbean 
        Basin Trade Enhancement Act is enacted. No report shall 
        be required under this section after September 30, 
        2005.
          (3) Treatment of puerto rico, etc.--For purposes of 
        this section, industries in the Commonwealth of Puerto 
        Rico and the insular possessions of the United States 
        are considered to be United States industries.
          * * * * * * *

         Consolidated Omnibus Budget Reconciliation Act of 1985

          * * * * * * *

SEC. 13031. FEES FOR CERTAIN CUSTOMS SERVICES.

    (a) Schedule of Fees.--In addition to any other fee 
authorized by law, the Secretary of the Treasury shall charge 
and collect the following fees for the provision of customs 
services in connection with the following:
          * * * * * * *
    (b) Limitations on Fees.--(1)(A) No fee may be charged 
under subsection (a) of this section for customs services 
provided in connection with--
          (i) the arrival of any passenger whose journey--
                  (I) originated in--
                        (aa) Canada,
                        (bb) Mexico,
                        (cc) a territory or possession of the 
                        United States, or
                        (dd) any adjacent island (within the 
                        meaning of section 101(b)(5) of the 
                        Immigration and Nationality Act (8 
                        U.S.C. 101(b)(5))), or
                  (II) originated in the United States and was 
                limited to--
                        (aa) Canada
                        (bb) Mexico,
                        (cc) territories and possessions of the 
                        United States, and
                        (dd) such adjacent islands;
          (ii) the arrival of any railroad car the journey of 
        which originates and terminates in the same country, 
        but only if no passengers board or disembark from the 
        train and no cargo is loaded or unloaded from such car 
        while the car is within any country other than the 
        country in which such car originates and terminates;
          (iii) the arrival of any ferry; or
          (iv) the arrival of any passenger on board a 
        commercial vessel traveling only between ports which 
        are within the customs territory of the United States.
    (B) The exemption provided for in subparagraph (A) shall 
not apply in the case of the arrival of any passenger on board 
a commercial vessel whose journey originates and terminates at 
the same place in the United States if there are no intervening 
stops.
    (C) The exemption provided for in subparagraph (A)(i) shall 
not apply [to fiscal years 1994, 1995, 1996, and 1997] before 
April 1, 2000.
    (2) No fee may be charged under subsection (a)(2) for the 
arrival of a commercial truck during any calendar year after a 
total of $100 in fees has been paid to the Secretary of the 
Treasury for the provision of customs services for all arrivals 
of such commercial truck during such calendar year.
    (3) No fee may be charged under subsection (a)(3) for the 
arrival of a railroad car whether passenger or freight during 
any calendar year after a total of $100 in fees has been paid 
to the Secretary
          * * * * * * *

                      Andean Trade Preference Act

          * * * * * * *

SEC. 206. INTERNATIONAL TRADE COMMISSION REPORTS ON IMPACT OF THE 
                    ANDEAN TRADE PREFERENCE ACT.

    [(a) In General.--The United States International Trade 
Commission (hereinafter in this section referred to as the 
``Commission'') shall prepare, and submit to the Congress, a 
report regarding the economic impact of this title on United 
States industries and consumers, and, in conjunction with other 
agencies, the effectiveness of this title in promoting drug-
related crop eradication and crop substitution efforts of the 
beneficiary countries, during--
          [(1) and 24-month period beginning with the date of 
        enactment of this title; and
          [(2) each calendar year occurring thereafter until 
        duty-free treatment under this title is terminated 
        under section 208(b).
[For purposes of this section, industries in the Commonwealth 
of Puerto Rico and the insular possessions of the United States 
shall be considered to be United States industries.]
  (a) Reporting Requirements.--
          (1) In general.--The United States International 
        Trade Commission (in this section referred to as the 
        ``Commission'') shall submit to Congress and the 
        President, biennial reports regarding the economic 
        impact of this title on United States industries and 
        consumers, and, in conjunction with other agencies, the 
        effectiveness of this title in promoting drug-related 
        crop eradication and crop substitution efforts of the 
        beneficiary countries.
          (2) Submission.--During the period that this title is 
        in effect, the report required by paragraph (1) shall 
        be submitted on September 30 of each year that the 
        report required by section 215 of the Caribbean Basin 
        Economic Recovery Act is not submitted.
          (3) Treatment of puerto rico, etc.--For purposes of 
        this section, industries in the Commonwealth of Puerto 
        Rico and the insular possessions of the United States 
        are considered to be United States industries.
          * * * * * * *

                                 

                                     
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