[House Report 118-661]
[From the U.S. Government Publishing Office]


118th Congress }                                               {   Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                               { 118-661

======================================================================



 
                         ANTI-BDS LABELING ACT

                                _______
                                

 September 10, 2024.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Smith of Missouri, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 5179]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 5179) to require the maintenance of the country of 
origin markings for imported goods produced in the West Bank or 
Gaza, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................2
          A. Purpose and Summary.................................     2
          B. Background and Need for Legislation.................     2
          C. Legislative History.................................     3
          D. Designated Hearing..................................     3
 II. EXPLANATION OF THE BILL..........................................3
III. VOTE OF THE COMMITTEE............................................4
 IV. BUDGET EFFECTS OF THE BILL.......................................4
          A. Committee Estimate of Budgetary Effects.............     4
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     5
  V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE........5
 VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......5
          A. Committee Oversight Findings and Recommendations....     5
          B. Statement of General Performance Goals and 
              Objectives.........................................     6
          C. Information Relating to Unfunded Mandates...........     6
          D. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................     6
          E. Duplication of Federal Programs.....................     6
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............6
VIII.DISSENTING VIEWS.................................................7


    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Anti-BDS Labeling Act''.

SEC. 2. CONTINUATION IN EFFECT OF COUNTRY OF ORIGIN MARKING POLICY FOR 
                    IMPORTED GOODS PRODUCED IN THE WEST BANK OR GAZA.

  The policy of the Government of the United States with respect to 
country of origin marking of imported goods produced in the West Bank 
or Gaza, notice of which was published by U.S. Customs and Border 
Protection in the Federal Register on December 23, 2020 (85 Fed. Reg. 
83984), shall remain in effect until repealed by an Act of Congress.

SEC. 3. PROHIBITION ON USE OF FUNDS TO RESCIND OR CHANGE THE COUNTRY OF 
                    ORIGIN MARKING POLICY FOR IMPORTED GOODS PRODUCED 
                    IN THE WEST BANK OR GAZA.

  Notwithstanding any other provision of law, none of the funds 
authorized to be appropriated or otherwise made available for the 
Department of State or U.S. Customs and Border Protection on or after 
the date of the enactment of this Act may be obligated or expended to 
prepare or promulgate any policy; guidance; regulation; notice; or 
Executive order or to otherwise implement, administer, or enforce any 
policy that rescinds or changes the policy of the Government of the 
United States with respect to country of origin marking of imported 
goods produced in the West Bank or Gaza, notice of which was published 
by U.S. Customs and Border Protection in the Federal Register on 
December 23, 2020 (85 Fed. Reg. 83984).

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    H.R. 5179, the Anti-BDS Labeling Act, as ordered reported 
by the Committee on Ways and Means on April 17, 2024, Codifies 
the 2020 notice ``Country of Origin Marking of Products from 
the West Bank and Gaza'' (85 Fed. Reg. 83984) and prohibits the 
use of federal funds to reverse or alter the rule.

                 B. Background and Need for Legislation

    U.S. law, in 19 U.S.C. 1304, requires accurate labeling of 
an imported product's country of origin. In 1997, the 
Palestinian Authority (PA) asked the United States to accept 
the ``West Bank/Gaza'' country of origin for goods produced in 
the West Bank or the Gaza Strip. The PA's intent with this 
request was to establish territorial unity between the two 
areas. In response, the United States issued guidance stating 
that ``West Bank/Gaza'' and ``West Bank/Gaza Strip'' were 
considered acceptable country of origin markings. On December 
1, 2020, the Department of State issued new guidance advising 
that (1) Israel continues to exercise relevant authority in 
areas of the West Bank and (2) Gaza and the West Bank are 
politically and administratively separate. Following this new 
guidance, CBP issued its notice that goods produced in the 
territorial areas of the West Bank where Israel continues to 
exercise relevant authorities must be marked as ``Israel,'' 
``Product of Israel,'' or ``Made in Israel.'' CBP's notice 
further clarified that goods must be marked, as appropriate, 
``Product of West Bank,'' ``Product of Gaza,'' or words of 
similar meaning. Finally, CBP's notice stated that goods must 
not be marked ``West Bank/Gaza,'' ``West Bank/Gaza Strip,'' 
``West Bank and Gaza,'' or words of similar meaning.

                         C. Legislative History


Background

    H.R. 5179 was introduced on August 8, 2023, by 
Representative Claudia Tenney and was referred to the Committee 
on Ways and Means.

Committee Hearing

    On November 15, 2023, the Committee held a hearing entitled 
``From Ivory Towers to Dark Corners: Investigating the Nexus 
Between Antisemitism, Tax-Exempt Universities, and Terror 
Financing.''

Committee Action

    The Committee on Ways and Means marked up H.R. 5179, the 
``Anti-BDS Labeling Act'' on April 17, 2024, and ordered the 
bill, as amended, favorably reported (with a quorum being 
present).

                         D. Designated Hearing

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearings were used to develop and consider H.R. 5179:
    On November 15, 2023, the Committee held a hearing entitled 
``From Ivory Towers to Dark Corners: Investigating the Nexus 
Between Antisemitism, Tax-Exempt Universities, and Terror 
Financing.''

                      II. EXPLANATION OF THE BILL


                              PRESENT LAW

    No current statute addresses the issue that is the focus of 
this bill.

                           REASON FOR CHANGE

    U.S. law, in 19 U.S.C. 1304, requires accurate labeling of 
an imported product's country of origin. H.R. 5179 codifies the 
U.S. Customs and Border Protection Notice ``Country of Origin 
Marking of Products from the West Bank and Gaza'' (85 Fed. Reg. 
83984) to ensure that products made in Israeli-controlled areas 
of the West Bank be marked as originating from ``Israel'' and 
that products made in Gaza or Palestinian-controlled areas of 
the West Bank be labeled as either made in ``Gaza'' or the 
``West Bank.''

                       EXPLANATION OF PROVISIONS

Section 1. Short Title

    The short title of this Act is the ``Anti-BDS Labeling 
Act.''

Section 2. Continuation in Effect of Country of Origin Marking Policy 
        for Imported Goods Produced in the West Bank or Gaza

    This section codifies United States policy with respect to 
country of origin marking of imported goods produced in the 
West Bank or Gaza (85 Fed. Reg. 83984).

Section 3. Prohibition on use of Funds to Rescind or Change the Country 
        of Origin Marking Policy for Imported Goods Produced in the 
        West Bank or Gaza

    This section prohibits the Department of State and U.S. 
Customs and Border Protection from obligating or expending 
funds to rescind or change the country of origin marking 
policies codified in Section 2.

                             EFFECTIVE DATE

    The effective date is the date of enactment.

                       III. VOTE OF THE COMMITTEE

    In compliance with the Rules of the House of 
Representatives, the following statement is made concerning the 
vote of the Committee on Ways and Means during the markup 
consideration of H.R. 5179, the ``Anti-BDS Labeling Act,'' on 
April 17, 2024.
    H.R. 5179 was ordered favorably reported to the House of 
Representatives as amended by a roll call vote of 25 yeas to 17 
nays (with a quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
           Representative              Yea     Nay    Present       Representative       Yea     Nay    Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO).....................      X   ......  .........  Mr. Neal.............  ......      X   .........
Mr. Buchanan.......................      X   ......  .........  Mr. Doggett..........  ......      X   .........
Mr. Smith (NE).....................      X   ......  .........  Mr. Thompson.........  ......      X   .........
Mr. Kelly..........................      X   ......  .........  Mr. Larson...........  ......  ......  .........
Mr. Schweikert.....................      X   ......  .........  Mr. Blumenauer.......  ......      X   .........
Mr. LaHood.........................      X   ......  .........  Mr. Pascrell.........  ......      X   .........
Dr. Wenstrup.......................      X   ......  .........  Mr. Davis............  ......      X   .........
Mr. Arrington......................      X   ......  .........  Ms. Sanchez..........  ......      X   .........
Dr. Ferguson.......................      X   ......  .........  Ms. Sewell...........  ......      X   .........
Mr. Estes..........................      X   ......  .........  Ms. DelBene..........  ......      X   .........
Mr. Smucker........................      X   ......  .........  Ms. Chu..............  ......      X   .........
Mr. Hern...........................      X   ......  .........  Ms. Moore............  ......      X   .........
Ms. Miller.........................      X   ......  .........  Mr. Kildee...........  ......      X   .........
Dr. Murphy.........................      X   ......  .........  Mr. Beyer............  ......      X   .........
Mr. Kustoff........................      X   ......  .........  Mr. Evans............  ......      X   .........
Mr. Fitzpatrick....................      X   ......  .........  Mr. Schneider........  ......      X   .........
Mr. Steube.........................      X   ......  .........  Mr. Panetta..........  ......      X   .........
Ms. Tenney.........................      X   ......  .........  Mr. Gomez............  ......      X   .........
Mrs. Fischbach.....................      X   ......  .........
Mr. Moore..........................      X   ......  .........
Mrs. Steel.........................      X   ......  .........
Ms. Van Duyne......................      X   ......  .........
Mr. Feenstra.......................      X   ......  .........
Ms. Malliotakis....................      X   ......  .........
Mr. Carey..........................      X   ......  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 5179, as 
reported. The estimate prepared by the Congressional Budget 
Office (CBO) is included below.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee states further that the bill involves no new or 
increased tax expenditures.

      V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.




    H.R. 5179 would codify the Department of Homeland Security 
(DHS) regulation, published in the Federal Register on December 
23, 2020, that specifies how goods produced in Israel, Gaza, 
and the West Bank are to be labeled with respect to laws about 
country-of-origin markings. The bill also would prohibit the 
use of any funds provided to the Department of State or U.S. 
Customs and Border Protection after enactment to amend or 
repeal this policy.
    Since H.R. 5179 codifies an existing federal regulation, 
CBO estimates that enacting the bill would have no federal 
cost.
    The CBO staff contact for this estimate is Margot Berman. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

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


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee made findings and 
recommendations that are reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill does not authorize funding, so no statement of general 
performance goals and objectives is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   E. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

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

    The bill, as reported, does not propose to repeal or amend 
a statute or part thereof.

                         VIII. DISSENTING VIEWS

    Committee Democrats agree with the need to stand by 
Israel--a great ally and partner of the United States. However, 
H.R. 5179 would not strengthen economic and security ties with 
Israel. Instead, the legislation would seriously impair the 
ability of the Biden administration to pursue a viable two-
state solution for Israel and the Palestinian territories.
    H.R. 5179 would require continuation of a country of origin 
marking policy for imported goods produced in the West Bank or 
Gaza as set forth by U.S. Customs and Border Protection in the 
Federal Register on December 23, 2020 (85 Fed. Reg. 83984), 
during the Trump administration, to remain in effect until 
repealed by an Act of Congress.
    This legislation seriously interferes with the prerogatives 
of the President to ensure labeling of imported products is 
consistent with U.S. foreign policy. The bill would also hinder 
the U.S. Department of State's ability to carry out other 
foreign policy priorities, including the support of a viable 
two-state solution for Israel and the Palestinian territories. 
The legislation does not provide the flexibility necessary to 
permit the administration to align policy with respect to 
country of origin marking for imported goods with adjustments 
in U.S. foreign policy in the future. The U.S. Department of 
State has identified policy flexibility as critical to ensuring 
both peace and security for Israelis and Palestinians.
    Committee Democrats present at the markup unanimously 
opposed favorably reporting H.R. 5179, as amended, to the House 
of Representatives.
            Sincerely,
                                           Richard E. Neal,
                                                    Ranking Member.

                            DISSENTING VIEWS

    In the months that have followed Hamas's unthinkable war on 
Israel, House Democrats have been calling for a national 
security supplemental to stand with our ally and friend in a 
time of need. The partnership between the United States and 
Israel is strong, and built on our unwavering commitment to 
democracy, economic prosperity, and regional security.
    In fact, we were the first country to recognize Israel as a 
state in 1948 and signed its first free trade agreement in 
1985. This agreement continues to serve as the foundation for 
expanding trade and investment between the United States and 
Israel.
    The bill offered by Republicans today does nothing to 
strengthen our economic and security ties with Israel. The path 
for meaningful action is clear--let's act on the need at hand 
instead of needlessly interfering with existing practices.
    It's past time for Republicans to bring the Senate National 
Security Supplemental to the floor. If we want to stand with 
Israel, that's how best to do it. With that bill, we can 
provide security assistance to Israel and humanitarian 
assistance to those in need in Gaza and the West Bank, along 
with Ukraine, and others caught in conflict around the world.
    With that, I yield back the balance of my time.

                                           Richard E. Neal,
                                                    Ranking Member.